20160314-NEWS--1-NAT-CCI-CL_-- 3/11/2016 3:23 PM Page 1

VOL. 37, NO. 11 MARCH 14 - 20, 2016

HIGHER ED: Akron Business of Life University fights drop in enrollment P. 4 Fun mail Local companies will send FOCUS: Big Fun you stuff other than bills Owner adjusts to Internet age P. 15 P. 22-23

SOURCE LUNCH CLEVELAND BUSINESS The List John Petures Jr. talks local giving Employee benefit services firms P. 24 P. 27 Avoiding the fall Bankruptcy filings plummeted in 2015, but will the trend continue this year?

BY JEREMY NOBILE

Mirroring a national trend, Ohio’s commercial and per- sonal bankruptcy filings continued to plunge in 2015, hitting a multi-year low in response to factors in- cluding a generally stronger economy and a prolonged low-interest rate environment. But that could change this year, partic- ularly for corporate filings tied to more unstable industry sectors, like oil and gas, which many businesses in this region are exposed to. According to the American Bank- ruptcy Institute, all filings in the Unit- ed States fell 10% in the 2015 calendar year from 2014. That includes a 14% annual drop in commercial filings and 10% drop for consumers. Those 819,285 commercial and personal bankruptcies filed in calendar year 2015 are the fewest filings logged nationwide SEE BANKRUPTCY, PAGE 12 DANIEL HERTZBERG Global Center out Local donors back to reduce vacancy

BY JAY MILLER reach. It has more than 500 offices in 67 countries. Kasich Super PAC [email protected] Its job will be to lease the remain- @millerjh ing 20,000 feet of vacant space in the four-story building, that, along with Businesses, execs give $1.3 million to New Day for America The Global Center for Health In- the First Merit Convention Center of novation is hiring Colliers Interna- Cleveland, comprise a $465 million BY JAY MILLER according to Federal Elections Com- based gambling operations. tional to begin a “full court press” to investment by Cuyahoga County de- mission data analyzed by the Center They are Hard Rock Rocksino, fill the roughly 15% of its space that signed to boost tourism broadly, [email protected] for Responsive Politics owned by the Milstein family, Jacobs is vacant. with a focus on bringing medical and @millerjh (bit.ly/226yda6). CRP data is based Investments Inc., led by chairman Colliers, an international real es- health care meetings to Cleveland. on FEC filings as of last Monday, and CEO Jeff Jacobs, and Dan tate brokerage and property man- The Global Center has yet to live Among the people Ohio Gov. John March 7. Gilbert, principal owner of the agement firm with a local office at up to the aspirations of its creators Kasich will have to thank if his cam- New Day has spent more than $10 Horseshoe Casino Cleveland. 200 Public Square, was chosen at and has struggled to find a success- paign for president manages to sur- million to help Kasich pursue his The other top donor to New Day is least in part because of its global SEE GLOBAL CENTER, PAGE 26 vive Tuesday’s Ohio primary will be presidential ambition. Independence Excavating Co., a group of Northeast Ohio business- Kasich for America, the official owned by the DiGeronimo family. It es and business people — and a la- campaign committee, has spent $7.2 gave $125,000. Entire contents © 2016 by Crain Communications Inc. bor union — who made large contri- million. The union donor is Political Edu- butions to the independent political At the top of the New Day list of cation Patterns, the political arm of action committee that has done the Northeast Ohio donors is Tony Local 18 Operating Engineers. It lion’s share of spending to get him George, the owner of the Harry Buf- contributed $40,000. elected the Republican Party’s can- falo restaurants, who gave $500,000 The largest contributor to New didate for president on the Novem- through George Pearl Rd Ltd. Day was Boich Cos., a Columbus ber ballot. George is listed as agent and in- coal marketing firm. It gave $1 mil- A look at the top donors to New corporator of that partnership on lion to New Day. Day for America, a so-called Super documents filed with the Ohio Sec- Super PACs have no limit on the PAC, shows a group of 15 Cleveland- retary of State’s office. Also on the size of contributions from corpora- area entities that have contributed New Day list are three contributions tions, unions and individuals, which more than $1.3 million to New Day, of $100,000 each from three Ohio- SEE KASICH, PAGE 25 20160314-NEWS--2-NAT-CCI-CL_-- 3/11/2016 10:44 AM Page 1 20160314-NEWS--3-NAT-CCI-CL_-- 3/11/2016 12:06 PM Page 1

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PAGE 4 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS LEASED As enrollment drops, 6200 OAK TREE BOULEVARD INDEPENDENCE, OHIO Akron gets creative

BY RACHEL ABBEY MCCAFFERTY

[email protected] @ramccafferty

The University of Akron has come under fire in recent months, as it Newmark is pleased to announce faces issues including repercussions the newest lease at 6200 Oak Tree of its massive budget cuts, a no- Visit confidence vote in its president’s Boulevard, Independence. Absolute TerryCoyne.com administration from the Faculty Hospice Inc. leased 3,960 square feet. Or Call Terry at Senate, and a decline in total giving. Kristy Hull represented the tenant 216.453.3001 Among those struggles, there is at and David Hollister represented least one number the university is watching particularly closely: the the landlord. number of students who have con- firmed enrollment for next fall. 1350 Euclid Ave., Suite 300 As of last Wednesday, March 9, Cleveland, Ohio 44115 about 1,310 students have submit- ted their deposits and confirmed they will attend Akron in the fall, said vice president of advancement (Contributed photo) Lawrence Burns. That’s down by about 350 students from around this time two years ago, and by more didn’t speak specifically to the situ- campus visits. than 600 students from about this ation at Akron, but said he universi- While Akron still uses traditional MEET YOUR time last year. ties overall are facing a declining media, a critical part of its outreach The numbers of students who student population. The council is taking place through social media. LOCAL LENDER have applied and been admitted — represents Ohio’s 14 public univer- The university is active on Facebook, about 17,000 and about 11,300, re- sities. Twitter, YouTube, Instagram and spectively — are down a bit from The traditional student popula- Snapchat, Burns said. The school is using videos to try to showcase the 2015, he said, but up from 2014. tion has declined as the number opportunities available at Akron and There’s a good pool of students to of students graduating high school give students what he called a draw from, Burns said. Now, it’s has shrunk, Johnson said. And the “bird’s eye view” of what life is like time to convince them to officially nontraditional student population on campus. enroll. That will be the university’s — especially for people over 26 — A video posted by the university Jonathan A. Mokri focus for the months of March and has contracted as the economy has last week on social media channels April. improved. 440.526.8700 like Twitter included victorious Burns said there are a few reasons Universities have to be active in [email protected] sports moments, scenes from cam- for this drop in confirmations. The pursuing new students, as degree pus and inspiring words like “suc- www.cbscuso.com pool of local students, the school’s completion is important for individ- ceed” and “strive” over some high- traditional mainstay, is smaller, so uals’ job prospects, he said. And tu- energy music. growth is going to come from out- ition is critical to the schools them- “We have so many good things With 91 Credit Unions working side the region. That requires a selves. Johnson said universities will fight this decline in population by going on here,” Burns said. together to provide business “more aggressive strategy,” Burns A more tangible incentive may said. The students aren’t as close as engaging in more advertising and lending to Northeast Ohio, offering more money for student come in the form of financial aid. the traditional base and aren’t as Potential students soon will receive Jonathan can help fi nd the loan scholarships. familiar with the university. They their financial aid packages, which Burns said the University of Akron structure that works for you! may not have even visited before include everything from scholarship is taking a multifaceted approach to applying. offers to information about their convince students to sign up. It’s Providing Commercial Loan Financing “Now we’ve just got to work on ability to borrow. That package is a increasing the events it offers for in Partnership with Area Credit Unions SM convincing them that they need to “big, big milestone” for prospective prospective students and adding visit and eventually enroll,” Burns students, Burns said, especially said. some new ones, like a set of pre-bas- those from farther away who are Another factor in the declining ketball game presidential receptions harder to convince. numbers could be the negative pub- in February and March. The school The school even is offering two licity that has filled the media re- also is ramping up the number of new scholarships this year, one cently, though he said that broader phone calls alumni and staff make to through the Williams Honors Col- geographic pool of possible students admitted students. President Scott lege and one for Founders Day. DO WHAT may not see many of those local Scarborough even has called poten- Both are worth $500; the honors headlines. tial enrollees, which has not hap- college scholarship requires admit- In fall 2015, the University of pened in the past, Burns said. tance to the college, while the YOU Akron enrolled nearly 4,300 new stu- And the university is looking to in- Founders Day scholarship has a dents. Burns said a good goal this crease the “peer-to-peer” interac- grade point component, Burns said. year would be 4,000 new students. tions between current and prospec- The awards can help make atten- WANT The official deadline to confirm en- tive students through its new dance more affordable to students rollment for planning purposes is student ambassador program, he and may entice them to choose May 1, though the university takes said. Akron. TO DO students who sign up after that time. That program began about four Burns said social media outreach weeks ago and now is in the recruit- and the financial aid are both criti- ing stages. Extra effort cal. He believes the school is cost Let us help you get there. We help Current students will be paid to competitive, but it’s just as impor- Bruce Johnson, president of the do outreach such as calling prospec- tant to show possible students what business owners plan for and implement Inter-University Council of Ohio, tive students and greeting them on opportunities are available. a successful exit strategy. Increase Value. Minimize Taxes. Protect Assets. Volume 37, Number 11 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at CORRECTION: 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2016 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing of- A March 7 story about the Tech El- fices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland evator software bootcamp misstated Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1- CEO Anthony Hughes’ former title. 877-824-9373. He previously served as president of Periodicals with ride-along enclosed in version 1 the Software Guild in Akron. It also REPRINT INFORMATION: 212-210-0750 incorrectly described Tech Eleva- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, tor’s money-back guarantee. Stu- $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send corre- Call our Certifi ed Exit Planning Advisor, Ray Lampner: 330.572.8014 spondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michi- dents can get a refund if they do not [email protected] • www.BCGLegacyAdvisors.com gan, 48207-9911, or email to [email protected], or call 877-824-9373 (in the U.S. and get a job offer within 120 days of Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. graduation. 20160314-NEWS--5-NAT-CCI-CL_-- 3/11/2016 10:45 AM Page 1

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PAGE 6 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS

WD&W Bldg. - Rockside Road’s Best Value Move-In Ready Offi ce Space for Lease New way to pay: Financial planners accept flat fees

BY JEREMY NOBILE that makes sense. The model isn’t In the expansive money manage- exactly broken, and it’s what many ment sector, those who aren’t charg- [email protected] investors the last couple decades ing dual fees — because they’re @JeremyNobile making investments themselves in- have grown used to. stead of using brokers— aren’t feel- And many established advisers Financial planning has been tra- ing quite the same pressures. don’t plan to change things much in ditionally considered a sales busi- For those wealth managers, who the short term. A January report by ness, but CFPs like Dan Johnson charge a percentage of AUM, that SEI, which surveyed 775 advisers, 6300 Rockside Road, Independence, OH want to change that stigma as disrup- model still makes the most sense. found that 19% of respondents plan tors shake up the industry, markets Those firms also tend to place in- to switch fees to some kind of hybrid • Offi ce Suites ranging from • Convenient Access to Cleveland become increasingly volatile and vestments in actively managed AUM fee structure in the next two 1,165-4,000 SF and Akron Via I-77 clients increasingly demand more strategies versus passive ones. years, while 10% intend to adopt • Move-in ready Offi ce Space • Highly Visible Location on transparency in fees. Those are the strategies Shane hourly fees or retainers. The other McRann Bigelow, Cleveland manag- Johnson launched his solo prac- • On-Site Ownership Rockside Road ing director of Bernstein Private 71% have no plans to change any- • Ample Surface Parking • Remodeled Common Areas tice, Forward Thinking Wealth Man- Wealth Management, expects will thing. • Large Bldg. Conference Room • Well Maintained Property agement, last month in Akron. He prevail in the coming years as mar- But, Anderson points out, those touts a fee-only model, charging kets remain choppy. numbers show a shift in fee struc- Ronald Midcap II clients a flat fee of $4,800 instead of He said his firm isn’t debating new tures is gaining traction, even if it’ll 216.839.2019 the most commonly applied assets- fee structures right now. take several years before the AUM- Robert Stimpson, portfolio manag- G. F. Coyle III, SIOR under-management (AUM) structure based structures truly fall out of style. 216.861.5286 HannaCRE.com that’s overwhelmingly prevailed er at Oak Associates Ltd. in Akron, Older, long-established advisers eye- since the 1990s. echoed those thoughts. He also said ing retirement are unlikely to change Under a AUM model, clients are his firm plans to stick close to the anything. AUM model as well. charged on a percentage of the total “We want client’s money to do “But if you’re thinking about 10, money being managed. The fees are well, so our incentives are aligned 15, 20 years down the line, you ab- typically tiered for people with differ- with the clients,” he said, referencing solutely have to be thinking about ent levels of assets, generally hover- the single layer of fees. this model right now,” he said. ing around 1%. And generally, those The difference between the mon- It’s a topic that even locally is wide- fees are usually in addition to similar ey managers comes down to the ly discussed, said Kara Downing, fees charged by brokers, too, which kinds of services being offered. For president of the Financial Planning can push those fees closer to 2% or those offering the full suite of ser- Association Northeast Ohio Chapter. more. Johnson previously worked for vices, AUM structure will prevail. Downing herself is starting her Merrill Lynch before joining a small, “We think is correctly aligns client own practice with Younity Wealth interests with our own. They do well, independent firm in Copley. He the percentage stays the same, but Partners in Beachwood. While not eventually broke off to start his own we collect more,” Bigelow said. “If we operating strictly a flat-fee business, firm to establish a fee-only structure do poorly, we won’t be employed.” she said she’s “exploring” alternative that he expects will slowly become fee structures beside just an AUM the prevailing business model. model. Some options can be difficult It not only makes sense for clients, said John Anderson, head of practice for clients to understand, like more he argues, but also for the money management solutions at Philadel- complex hybrid fee structures that managers themselves. It creates phia-based SEI Advisor Network, might combine something like AUM transparency and enables clients to which provides services and consul- fees with hourly advice. better control fees while the AUM tation to independent financial ad- “And when it comes to flat fees, model is still effectively a sales-driven visers. though, the question is, what’s the approach, and that carries a stigma of Those pressures are being felt in a magic number? There are no stan- its own for some investors concerned variety of ways from the rise of inex- dards for the quality of advice that whether their advisers are truly act- pensive automated robo-adviser ser- you’d base a flat fee off of,” she said. ing in their best interests. Compensa- vices, to regulations and market New firms like Downing’s in Cleve- tion is still based on market perfor- volatility, to a generally more savvy — land and Dan Johnson’s in Akron are mance, which managers, obviously, and younger — pool of potential in- the ones that will likely spearhead the don’t have any actual control over. vestors that better understands the shift in fee offerings because they are “The value I bring as a CFP is my industry and expects more trans- starting small and fresh. advice and expertise,” Johnson said. parency and lower costs. Johnson expects his approach to “So, if that is my value, why do I “AUM-type fees started in the early resonate with clients. He has set a charge based on things out of my to mid 1990s. Before that, it was an personal goal of reaching 175 clients control? I realized I should be paid for almost commissionable product,” in the next five years. my advice and expertise, similar to Anderson said. “We’re seeing anoth- Of course, applying a flat fee how attorneys and CPAs are com- er evolution today. You’re going to means Johnson will expectedly earn pensated.” see more moves toward fees for ser- less than he would in other fee struc- He’s not alone in that perspective. vice, hourly fees and other alternative tures. “But I’m willing to forego Fee structures are at a crossroads ways for clients to pay.” some extra revenue in order to get to as the traditional AUM model comes Large brokerage firms tend to be the people who fit better within my under increasing pressure nowadays, set in their ways, Anderson said. And model,” he said.

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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 Tim Magaw President Rance Crain Associate editor/Akron marketing manager Michelle Sustar Sue Walton Treasurer Mary Kay Crain Managing editor, custom APRIL 11 Assistant editor Kevin Kleps CIO Anthony DiPonio and special projects Amy Ann Stoessel Senior reporter Stan Bullard CFO Thomas Stevens Advertising director Real estate/construction Nicole Mastrangelo Group publisher Mary Kramer Reporters Jay Miller, Government Senior account exec. Dawn Donegan Exec. VP/operations William A. Morrow Account executives Chuck Soder Lindsie Bowman Exec. VP/director of COKIE ROBERTS John Banks Technology strategic operations Chris Crain Laura Kulber Mintz Dan Shingler Exec. VP/director Office coordinator Denise Donaldson Energy/steel/auto of corporate From the Capital to Cleveland * * * operations KC Crain Rachel McCafferty Web editor Damon Sims VP of production Manufacturing/energy Digital and manufacturing Dave Kamis Jeremy Nobile, Finance strategy/audience development director Nancy Hanus G.D. Crain Jr., Founder (1885-1973) Lydia Coutré, Mrs. G.D. Crain Jr., Chairman (1911-1996) Production director Craig L. Mackey Health care ® Production assistant/ * * * LIVE at the Idea Center at Playhouse Square Reprints: 212-210-0750 Research editor Deborah W. Hillyer video editor Steven Bennett Krista Bora [email protected], Art director Rebecca R. Markovitz Billing Peter Iseppi Customer service and subscriptions TICKETS: ideastream.org/cokie Cartoonist Rich Williams Credit Rod Warmsby 877-824-9373 20160314-NEWS--7-NAT-CCI-CL_-- 3/11/2016 2:26 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 7 Townhouses to rise along West Shoreway

BY STAN BULLARD little to sell them.” Success of any new-home project [email protected] depends on construction quality and @CrainRltywriter the price point, Sharkey said, but Breakwater Bluffs will benefit from sales of new homes and resales at A more than $10 million town- Battery Park. Moreover, he added, be- A rendering house development is taking shape tween the bluffs and the Edison, there for the Detroit-Shoreway neighbor- of the new is such scale that “it’s going to be like development hood of Cleveland near the Shoreway a new neighborhood.” and Lake Erie. Knez also is scheduled to start a by RSA This time it’s Breakwater Bluffs, a new townhouse development of 24 Architects 24-unit project proposed by an affili- units in the Duck Island section of LLC. ate of Knez Homes, a suburban Tremont that’s already cleared city builder with an increasing appetite review bodies. The firm also is build- for developing new homes in urban ing new homes on contract on infill Cleveland. The proposed project is at lots in Ohio City and neighboring West 58th Street and Breakwater SoLo, or south of Lorain Avenue, Boulevard, near the well-known th th Westinghouse curve. Bo Knez, the near West 38 and West 44 streets. owner of Knez Homes, said he under- took the project because of the site’s amenities, from being able to walk to the lakefront or local restaurants as well as downtown and marina views. The for-sale project is being spawned by a much larger develop- ment, The Edison, a 300-suite rental community that NRP Group of Let’s get down Garfield Heights is building this year. NRP is spinning off the site to accom- modate neighborhood demands that its large project have a buffer from the lower-density adjoining neighbor- to business. hood. The Knez site serves as a transi- tion between neighboring single-fam- ily homes and industrial properties and the new luxury rentals. Bill Sanderson, vice president for development at Knez, said in an in- terview, “We like the site and hope the market does, too.” The proposed design for the proj- ect includes nine townhouses on the east edges of the site on West 58th. On the north side of Breakwater will be seven semi-detached townhouses that will resemble area homes in scale. They face the street and are attached from behind by garages accessed from the interior of the proj- ect, where the remaining units and a green space will be located. Knez said houses facing Breakwater will be more traditional while those facing downtown and West 65th will be more contemporary in design. The design by RSA architects of Chagrin Falls is a balancing act. “It’s not like we’re building the No matter what your business Business Checking Pentagon with an impenetrable space on the inside,” Sanderson said, demands, Northwest delivers. Online and Mobile Banking* “but it’s not so disjointed it does not match the nearby apartments and Merchant Services neighborhood.” The units will range in cost from $300,000 to $600,000, de- Northwest is large enough to handle your diverse Express Deposit** pending on the size and location. Breakwater Bluffs was scheduled financial needs, yet small enough to genuinely Commercial Lending** for its first hearing by Cleveland’s Near West Design Review Committee *** on Wednesday, March 9, but it was partner with your business. We can tailor a plan Employee Benefits discussed informally and tabled be- *** cause the committee lacked a quo- to do exactly what you need it to do — help start, Retirement Plans rum, according to David Jurca, its chairman. He said the committee re- grow or protect your business. Property and Casualty Insurance*** quested additional details before it takes up the plan at a future meeting. Breakwater Bluffs benefits from the city of Cleveland’s upgrades of the West Shoreway, a new interchange with the Shoreway at West 65th Street 14 offices to and proximity to Battery Park, Willoughby-based Vintage Develop- serve you in ment massive townhouse develop- Lorain County ment that overlooks the Edgewater Reservation of Cleveland Metroparks. 1-877-672-5678 | northwest.com David Sharkey, president of Ohio City-based Progressive Urban Real Estate, said Battery Park has contin- *Mobile data or text charges may apply. **Subject to credit approval. See Bank for details. ***Northwest Bank has subsidiaries that use the service marks “Northwest Investment Services,” “Northwest Retirement Services” and ued to build and sell new units, but ³1RUWKZHVW,QVXUDQFH6HUYLFHV´WRSURYLGHLQYHVWPHQWDQGZHDOWKPDQDJHPHQWDFWXDULDODQG¿GXFLDU\VHUYLFHVDQGHPSOR\HHEHQH¿WSODQV6HFXULWLHVDUHRIIHUHGWKURXJKDQGDGYLVRUVDUHUHJLVWHUHGZLWK&HWHUD,QYHVWPHQW6HUYLFHV //&PHPEHU),15$6,3&$GYLVRU\6HUYLFHVDUHRIIHUHGWKURXJK1RUWKZHVW$GYLVRUV,QF&HWHUD,QYHVWPHQW6HUYLFHV//&LVLQGHSHQGHQWRI1RUWKZHVW$GYLVRUV,QFDQG1RUWKZHVW%DQN)L[HGDQQXLWLHVOLIHLQVXUDQFHDQGORQJ the area lacks adequate inventory, ei- WHUPFDUHSURGXFWVDQGDGYLFHPD\EHSURYLGHGE\1RUWKZHVW%DQNDOLFHQVHGLQVXUDQFHSURYLGHU,QVXUDQFHSURGXFWVDUHREOLJDWLRQVRIWKHLQVXUHUVZKRLVVXHWKHSROLFLHV3HUVRQDO3URSHUW\DQG&DVXDOW\/LIH'LVDELOLW\DQG/RQJ ther new or existing homes homes. 7HUP&DUHDQG%XVLQHVV3URSHUW\/LDELOLW\:RUNHUV¶&RPSHQVDWLRQ([HFXWLYH0DQDJHPHQW5LVN0DQDJHPHQWDQG6SHFLDOW\,QVXUDQFH3URJUDPVDQG(PSOR\HH%HQH¿WVVXFKDV*URXS+HDOWK/LIHDQG'LVDELOLW\DUHDYDLODEOH WKURXJK1RUWKZHVW,QVXUDQFH6HUYLFHVDZKROO\RZQHGDI¿OLDWHRI1RUWKZHVW%DQN1RUWKZHVW,QVXUDQFH6HUYLFHVLVDOLFHQVHGEURNHUDQGFRQVXOWDQWWKDWUHSUHVHQWVDQGLVW\SLFDOO\FRPSHQVDWHGE\LQVXUHUVEDVHGRQLQGXVWU\VWDQGDUG “People are skipping over the area FRPPLVVLRQVFKHGXOHV$GHFLVLRQWRSXUFKDVHLQVXUDQFHZLOOQRWDIIHFWWKHFRVWRUDYDLODELOLW\RIRWKHUSURGXFWVRUVHUYLFHVIURP1RUWKZHVW%DQNRULWVDI¿OLDWHVRUVXEVLGLDULHV1RUWKZHVWGRHVQRWSURYLGHOHJDOWD[RUDFFRXQWLQJDGYLFH to Lakewood because they can’t find Investments:1RW)',&,QVXUHG1RW%DQN*XDUDQWHHG0D\/RVH9DOXHInsurance:1RW)',&,QVXUHG1RW%DQN*XDUDQWHHG0D\/RVH9DOXH1RWD%DQN'HSRVLW1RW,QVXUHGE\$Q\*RYHUQPHQW$JHQF\ anything,” Sharkey said. “People 2QO\GHSRVLWSURGXFWVRIIHUHGE\1RUWKZHVW%DQNDUH0HPEHU)',& want to be down there, and there is 20160314-NEWS--8-NAT-CCI-CL_-- 3/11/2016 11:43 AM Page 1

PAGE 8 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS CIA trains car designers to think big

BY DAN SHINGLER nities for me there. … The car indus- try in China is really growing fast.” [email protected] He has worked on projects spon- @DanShingler sored and critiqued by big carmakers in the past, but Gao said he’s enjoy- Scott Colosimo is back in school. ing the class under Colosimo even The graduate of the Cleveland more, because there are not as many Institute of Art is back in the class- limits with regards to what he can de- room, where he’s been before as sign. With that in mind, he’s going all both a teacher and professor. out and is designing a Le Mans racer. To be fair, it’s a part-time gig. Junior David Porter came from Colosimo has full-time work run- the Detroit suburb of Rochester Hills ning his company, Cleveland Cycle to study transportation design at Werks, a motorcycle designer and CIA. That’s right — he moved from manufacturer. And CIA has its own the Motor City to learn how to full-time transportation design pro- design cars in Cleveland. He saw fessor that it hired in 2015, Haisan vehicles, like Corvettes and Dodge Deng, formerly of the School of Vipers, being designed by CIA grads Industrial Design at Guangzhou at major car companies. Academy of Fine Arts in China. “There are CIA people all over – But as the sponsor of this year’s it’s definitely a school that’s influ- class design project, Colosimo also is encing the industry a lot,” Porter serving as in-class guru, critic and said. He also was attracted by CIA’s arbiter, and he has found a diverse strengths as an industrial and prod- and exciting crop of students. uct design school. “I like working with the students, “I think the two (aspects of the they are not burdened by the crush- school) work hand in hand,” Porter Students Jonah Gardner, Xuan Gao ing reality brought on by the day to said. “A car is a product, and you and David Portter. (Dan Shingler) day production constraints of manu- need to think about it as a product at facturing,” he said. “It is refreshing to the same time that you design it.” see the raw creativity that the stu- Ultimately, Porter said, he wants Cincinnati. He also would love to dents bring to the table. It keeps me to design vehicles, though he’s not work for a smaller car company after A rendering from on my toes and keeps my guys fresh.” sure he wants to work for a big orig- he graduates. student Xuan Gao’s Xuan Gao is a sophomore at CIA. inal equipment manufacturer, or He also comes at transportation midterm project. He’s learning how to design cars so OEM. He thinks he might want to from an industrial design angle — that he can one day return to China, work for a smaller company, like his major area of study — and does where the automotive industry is ex- electric car powerhouse Tesla. He not view cars as mere conveyances. pected to grow faster than anywhere thinks originality and out-of-the box “Students really have to be as else, to help his country grow its car thinking might be more highly val- broadly talented as they can possibly industry — eventually, that is. ued at a smaller company. be and have an understanding, at “After I’ve graduated from here, I And, of course, there’s this: “Who a minimum, of each element of think I’m going to go to a company,” wouldn’t want to work with Elon design,” Gardner said. “So even Gao said. “I don’t have a specific Musk?” Porter said, echoing a com- though I want to be a transportation company in mind, but I think I’m mon refrain among his classmates designer — I also take graphic design going to work for a company in the about the charismatic Tesla founder. — we study communications ... and U.S. for a few years, and then go back That’s the way Jonah Gardner we study industrial and product de- to China. There are a lot of opportu- thinks, too. He’s a sophomore from sign as well.”

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PRESENTED BY

WOMEN OF NOTE SUMMIT & AWARDS 2016 Honorees Announced

• Micki Byrnes, president and general manager, WKYC Media • Carolyn Cheverine, senior vice president and chief counsel, industrial sector, Eaton Cleveland Foundation • Michele Connell, managing partner, Cleveland, Squire Patton Boggs Women of Note • Elizabeth Evans, executive vice president, general counsel and secretary, Republic Steel Legacy Award • Karen Gahl-Mills, CEO and executive director, Cuyahoga Arts & Culture • Anne C. Goodman, president and CEO, Saint Luke’s Foundation • Robyn N. Gordon, director, center operations, NASA Glenn Research Center • Debra Green, vice president, social responsibility and chief diversity officer, Medical Mutual of Ohio • Ramona Hood, managing director, FedEx Truckload Brokerage, FedEx Custom Critical • Loretta Mester, president and CEO, Federal Reserve Bank of Cleveland • Patricia A. Motta, executive director, assistant general counsel and chief intellectual property officer, American Greetings Corp. • Geri Presti, executive vice president, secretary and general counsel, Forest City Realty Trust Inc. Jacqueline F. Woods • Lisa Rose, president, Dix & Eaton Turning Passion into Purpose for • Rita Singh, founding managing partner, S&A Consulting Group Generations of Women • Nancy Tinsley, president, UH Parma Medical Center, University Hospitals

2016 Women of Note Summit information Crain's is introducing a new and improved format for 2016. The event will now kick off with the Women of Note awards luncheon from 11:30 a.m - 2:00 p.m., followed by the Summit from 2:00 - 6:00 p.m. Join us for a can’t-miss afternoon of learning, sharing experiences, acquiring new contacts and creating new ideas through interactive table facilitation and dialogue. Think of it as networking for the greater good to enhance the lives of other women in our community. Agenda and speaker information coming soon! Wednesday, May 25 | FirstMerit Convention Center of Cleveland For tickets and information, visit CrainsCleveland.com/WON

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PAGE 10 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS Opinion

From the Akron Editor Airports that are just the right size

I’m not a fan of flying — the crowds, navigating labyrinthine airports, the tight squeezes on planes. Further, I’m not a fan of being onboard a plane in actual flight. Dramamine is a constant companion. Given the statements above, two of my favorite things are big planes (less turbulence) and small airports (fewer hassles). Lucky for me, I live in a region that can give me both. As a resident of Summit County, I live closest to Akron-Can- ton Airport, and its small, easy-to-navigate setup fits my flying profile. It’s big enough for the larger planes (most are 737s) to get in and get me where I need to go, and small enough where I don’t feel lost in a maze. Really, too, Akron-Canton’s larger cousin to the north, Cleveland Hopkins Internation- al Airport, is a breeze most of the time. Yes, the $20 million terminal facelift it is going through to ready for this summer’s Re- Sue Walton publican National Convention has made for chaotic congestion and tense travelers. But in construction-free times, we should count ourselves lucky. Like we do about Northeast Ohio traffic, we might grumble about our airports until we go elsewhere and see what other re- gions have to put up with. Editorial Even at their worst, the logistics of Akron-Canton and Cleve- land Hopkins can’t compare to those at, say, Chicago O’Hare — or to the time I had to run at a full-on sprint through a sprawling Miami International Airport to make a connecting flight (though it was a good wakeup call to spend a little more time on the treadmill). Toxic thinking Like Cleveland Hopkins, Akron-Canton, or CAK as folks (and airport coders) call it, is undergoing renovations. And it’s look- ing to the future. It just unveiled a $240 million master plan that Rarely do we see Cleveland’s business community, govern- delegation, the State of Ohio, or the Port of Cleveland.” In will help guide its growth and development for the next 20 ment agencies, environmental groups and private citizens on fact, the senators said they “demand” the Corps’ include at years. The plan includes projects already underway that are the same page. But when it comes to the opposition of least $2 million for this project from the unallocated $273 making the airport experience even better. dumping toxic sediment dredged from the bottom of the million pool. The parking and main entrance road are getting upgrades, Cuyahoga River into Lake Erie, this collective is in agreement: The Corps argues that after years of dredging, the sediment making for easier navigation. The airport grounds are so com- Don’t do it. is no longer toxic. The Ohio Environmental Protection pact, the short entrance/exit road didn’t leave enough time for However, the group responsible for the dredging — the Agency wasn’t sold on that argument, and last year, U.S. Dis- drivers to read the signs. The changes will fix that. The main ticketing area also is get- U.S. Army Corps of Engineers — has chosen to defy logic, ig- trict Court Judge Donald Nugent enforced the state’s order ting a facelift, making it brighter and more welcoming. Longer- nore science and ultimately embarrass itself. banning a lake dump. But given that the order only covered term plans include the replacement of existing gates, making it The Corps argues, despite studies saying the contrary, that 2015, the Corps is back to its childish ways. easier to accommodate 737s. Plans also will call for airfield and it’s perfectly safe to dump the sediment in the lake. That’s the The Corps must back down from an argument that taxiway improvements, and a new parking structure. In short, Corps’ preferred method over storing it in costlier land-based William Friedman, the president and CEO of the Cleveland- CAK will be making an already good thing even better. confined disposal facilities, or CDFs. Cuyahoga County Port Authority, estimated could cost both Yes, both it and Hopkins have struggled with the loss of Dredging the river is important. Without it, the Cuyahoga sides anywhere from $500,000 to $5 million, depending on flights and a downturn in passengers. CAK is losing much of the River would become too shallow for commercial ships. The the resolution. presence of Southwest Airlines, which is consolidating its op- health of our waterways, which has slowly improved since Any delay in a final resolution could hamper commercial erations at Hopkins. garbage in the river caught fire in 1969, is also critical. Recent shipping and the asphalt, gravel, petroleum, salt, cement and The Cleveland airport, in turn, took a huge hit when United testing still shows trace levels of the toxin PCB and other sub- steel industries (particularly ArcelorMittal) along the river Airlines steeply cut its services there. stances, which can seep into our food chain. that the shippers serve. The Greater Cleveland Partnership But officials at both airports seem committed to boost those The Corps argues that it can’t afford the higher cost of recently released a sharp statement that said the Corps’ numbers and are continually working with carriers to add dumping upper-channel sediment — the less toxic, they say “choke hold on ArcelorMittal has the potential to impact flights and attract fliers. CAK just last week announced the ad- — into CDFs. However, in a stunningly deceptive move, the their 1,900 employees and countless other suppliers and re- dition of an Allegiant Air route to Orlando. Both airports understand the importance of their success in Corps intentionally asked for a reduction in its federal appro- lated businesses in our region.” a region that is on the upswing. At CAK, about 60% of its traffic priation, essentially handcuffing itself from doing what’s Last month, Friedman told Crain’s there’s “almost no is in leisure passengers, with 40% business travelers. But some right for Ohio business and the region’s waterways. chance” the dredging won’t occur. After all, it’s just an argu- industry watchers say that business travelers more often are Now, in a welcome gesture of bipartisanship, Ohio’s U.S. ment over who is paying certain costs. looking for convenience married to cost. Closer-in parking, senators — Sherrod Brown and Rob Portman — are urging However, any inaction that could threaten the health of faster passage through security, a shorter walk to the gate — all the Corps to direct funds from a discretionary, unallocated waterways and Northeast Ohio’s still-fragile economy is not of these should be attractive to busy business travelers. pool of funding to cover that shortfall so it can dispose of the one we take lightly. As a longtime resident of Northeast Ohio, I’ve come to ap- toxic sludge safely. In their letter, the senators said they were The Corps’ continued posturing is exhausting. preciate the advantages of living in a midsize region provide. “disappointed that the Corps’ request to reduce funding was If the Corps wants to dump anything in the lake, perhaps And even with their challenges, I count our airports among done without consultation and coordination with the Ohio it should be its ego. them.

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. 20160314-NEWS--11-NAT-CCI-CL_-- 3/10/2016 1:46 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 11

Personal View Web Talk Re: All those former Cleveland coaches Let’s not cry Think about how that money could be used for productive purposes such as improvements in stadiums or in downtown Cleveland in general. over Phenom’s Billionaires like Dan Gilbert and Jimmy Haslam just toss money away, but my guess is they squeeze their employees on raises and vendors on price and western success then raise ticket prices to pay for their mistakes. Shame on us for accepting it as a normal course of business. We BY RAY LEACH need them to hear us — especially the For more information visit elkandelk.com/CIFF Browns, since at least the Cavs made A recent Crain’s Cleveland Business headline, reporting on lo- the finals last season — by boycotting cal startup Phenom’s entry into the Silicon Valley accelerator, 500 the games and stop buying season Startups, led with the words “sad truth,” going on to say that Phe- tickets already! nom probably wouldn’t have been accepted into the acclaimed — Trey D West Coast accelerator unless founders Brian Verne and Mike Ep- pich had moved from Cleveland to San Francisco. Re: Interview with Somewhat ironically, the story (and the comments found un- derneath) went on to point out that Phenom hopes to come back entrepreneur Dan Moore to town and that our local startup scene has grown significantly This (Q&A) made me smile. George in the last decade. Marshall, Mr. Moore’s favorite Still, there was something about those introductory words, business person of all time, is the “sad truth,” that felt like another “woe-is-me” headline we Cleve- most consequential American nobody landers have got to find a way to stop using. has ever heard of. I liked virtually By this point in time, I would hope we’ve all been in the start- everything Mr. Moore had to say in up game long enough to know that no one should view this de- this interview. I wonder how he feels velopment as another “sad Cleveland story.” about patent reform; fixing the damage To me, there’s nothing sad about Phenom getting accepted to that an out of control system is doing 500 Startups. In fact, this story could turn out to be some of the across the country. best news I have heard in the last few months regarding both — Martin Snyder Phenom and Cleveland’s entrepreneurial future. Cleveland today has hundreds of startup entrepreneurs work- Re: CSU study highlights ing on great ideas – it’s way past time we realize that maybe los- region’s 2015 job growth ing a few startups to San Francisco (whether it is for a few months or forever) is not the end of the world. The sectors of education, health, Growth is good wherever it happens. Startups that grow ag- leisure and hospitality have seen so gressively do so because they think of themselves as nationally, much growth and opportunity. Even if not globally relevant companies. with the addition of construction and These businesses are not just “Cleveland” or “Silicon Valley” financial services, one can see how ventures. The sooner we realize this and stop treating the econ- much the economy is changing with omy as if it ends at the Cuyahoga County border, the better it is so much growth in the region. The for everyone. metro area is really providing the Phenom’s willingness to put everything on the line and move numbers that show how much is to San Fran with the goal of eventually coming back to Cleveland working with an overall strategy is exactly the kind of entrepreneurial hustle our city and region and business plan for the area. needs. If they are successful, they will go a long way toward in- — Roger Tucker creasing the credibility of other Northeast Ohio startup entrepre- neurs here at home, in Silicon Valley and all across the U.S. Re: Departure of Browns The simple truth is Cleveland is not yet well known as a soft- president Alec Scheiner ware town, particularly B2C software. Tom Fox, SIOR Despite the success of homegrown startups like Explorys, we Cummins tel 330 535 2661 To quote the Bard: “If it were done www.naicummins.com still have a significant focus on biotech and other B2B enterprise Commercial Real Estate Services, Worldwide. when ‘tis done, then ‘twere well. It was businesses, which makes perfect sense considering our current done quickly” Alec Scheiner’s farewell and most significant assets and resources (large health care in- )NDUSTRIALŸ4RUCKŸ4ERMINALŸŸ4RANSITŸ(UBŸFORŸ3UBLEASE statement: “Et tu, Sashi?” Scheiner stitutions). can go take a seat next to Joe Banner. Instead of bemoaning this challenging truth, we should be us- — Seth Hirschfeld ing it as motivation to do an even better job of commercializing disruptive technologies into strong products and growing com- Translation: “You’re fired and we’ll panies. Leaders in our community are doing just that, and I be- pay you some cash if you sign a non- lieve we are going to continue to make increasingly significant disparagement contract.” Anyway, progress in the coming years. probably best not to have lawyers in One of the blessings and curses of striving to develop an entre- charge of pro football teams anyway. preneurial ecosystem in Northeast Ohio is that the work is never — Robert Fritz done and our challenges are very real. Having said this, Phenom getting accepted into 500 Startups is Re: Love the Velvet something we all should celebrate, not bemoan. Tango Room It’s a fine cocktail bar with a European Ray Leach is CEO at JumpStart Inc., a Cleveland nonprofit that ambiance. (Owner) PauIius (Nasvytis) assists entrepreneurs. has the perfect holiday eggnog recipe, Ÿ"RECKSVILLEŸ2D Ÿ2ICHÚELD Ÿ/HIOŸ which he published in a Cleveland 28 docks, 10,300 SF, and approximately 4 acres newspaper article about the VTR several years ago. I have made the Between SR-271 and SR-77 (1 mile to each) Paulius eggnog for friends and family Sublease for $8,500 per month, gross every holiday season for the last three years. They love it. Approximately $300 per door — James Anderson Call Tom Fox, SIOR - 330-730-1047 20160314-NEWS--12-NAT-CCI-CL_-- 3/10/2016 4:11 PM Page 1

PAGE 12 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS BANKRUPTCY CONTINUED FROM PAGE 1 money in the system. And that’s the since 2006. Bankruptcies peaked primary reason our work is down.” shortly after the last recession in Cheap money means companies 2010 when more than 1.5 million that might’ve been close to bank- were filed. ruptcy have been more likely to just Comparatively, all Ohio filings borrow the money they need to cor- across the state’s northern and rect financial instability. southern districts dropped about 8% That money might even come in 2015 from 40,267 to 36,959. That from venture capital or private equi- includes 7% and 8% drops in com- ty firms, which have become in- mercial and consumer filings, re- creasingly involved in struggling spectively. In Ohio, the number of companies in recent years, making filings has decreased consistently potentially risky but high-upside in- year over year since 2010. According vestments, said Thomas Coffey, a to figures from ABI, total filings have Cleveland bankruptcy attorney with dropped roughly 47% since the Tucker Ellis LLP. 69,314 logged in 2010, with con- Sometimes referred to as vulture sumer filings falling 46% and com- capitalists, those groups often make mercial filings plunging 68%. loans in return for stock ownership. The figures are similar for the “You are seeing the influence northern Ohio district, with filings from VC firms,” Coffey said. “And decreasing almost 48% since 2010 to that’s really a big part of this.” their lowest levels since then. Com- mercial filings fell 65%, while con- ‘Just too costly’ sumer filings dropped 47%. The number of bankruptcies can Meanwhile, funding for restruc- indicate the general strength of the turing and reorganizations — two economy. As companies perform different processes that ultimately well, fiscal woes tend to shrink and help restore company profitability bankruptcies will occur with less fre- — has become harder to get as quency. The drop in bankruptcies in banks steer away from that kind of Ohio has shadowed the growth of “very risk” debt, Gibbons said. employment. Both in Ohio and So on one hand, credit has been across the country, unemployment available; on the other hand, not so has been decreasing for years and much. currently hovers around 5%. “We are still suffering to this day from the effects of the crash in 2008 that made financing more difficult Cheap money to obtain in the reorganization con- But there are a variety of other fac- text,” Coffey noted. tors at play, like the prolonged avail- “You have to be large to have the ability of cheap money that has sophistication to do it. And there just helped many businesses stay solvent aren’t many who do it.” the past several years and the influ- Meanwhile, the overall price tag of ence of alternative financers. bankruptcy is becoming harder for “We are in a cycle now with inter- some to stomach, regardless of the est rates as low as they’ve been in my availability of financing. lifetime,” said Colette Gibbons, a There’s a perception today that Cleveland bankruptcy lawyer and regardless of a company’s size, partner at Ice Miller LLP. “There’s Chapter 11 bankruptcy is “just too DANIEL HERTZBERG 20160314-NEWS--13-NAT-CCI-CL_-- 3/10/2016 4:12 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 13

is going to be. As money gets more expensive, A CLOSER LOOK AT THE the companies having an “identity crisis,” Coffey said, or just the ones CONSUMER FACTOR who’ve been hunkering down for a Most bankruptcies are filed couple years could see trouble. by consumers. “You’re going to see a lot of this Only about 4% of the 819,240 low-hanging-fruit syndrome where bankruptcies filed in 2015 came some who were weak held on for a from a commercial or corporate long time because the cost of money entity, in fact. outside of bankruptcy has been so So filings dipping to their low,” he said. “You will see the cost lowest levels in years partly of money go up. And you will see in- reflect more stable finances for creased filings.” the average citizen. Companies most impacted by But it’s also a function of market swings, like those dependent low amounts of dischargeable on the oil and gas market, will likely debt today, said Kara Bruce, face more challenges this year that an associate professor of could translate to some kind of bankruptcy law at the bankruptcy. University of Toledo College In Ohio, there tends to be ancillary Of Law and a past resident companies and manufacturers sell- scholar for the American ing products and services to produc- Bankruptcy Institute. ers and well operators than produc- Access to credit hasn’t tion and exploration companies “fully thawed” since the last themselves. Those businesses could feel a tighter squeeze from lenders fi- recession, she said. nancing them as the value of oil and And fewer loans in the gas reserves is altered in the coming market overall means fewer spring, most likely depreciating and debts can go bad, translating shrinking a customer’s borrowing into a decrease in personal base along with it. bankruptcies. But the pressure partly depends Meanwhile, student loan debt, costly,” said Rob Stefancin, another choosing alternative remedies to Doolittle & Burroughs. on how lenders react and whether which the Federal Reserve has bankruptcy lawyer with Ice Miller. bankruptcy — like court-appointed “It’s easier to use without all the they come down hard on borrowers said could amount to as much It’s partly what prompted the forma- receiverships, which can be another expenses of bankruptcy.” or not. as $1 trillion in the United tion of an American Bankruptcy In- method for separating assets from li- Some will struggle. Some will States, can only be discharged stitute commission to research and abilities ahead of a sale. A turn in the cycle? close. And there’s potential for a in very rare circumstances. propose reforms to Chapter 11 that Ohio tweaked laws for that domino effect. Similar to corporate filers, While bankruptcies have contin- remains active today. process last March to make it a more “Anecdotally, we hear about wells though, individuals are also The process can be a strategic tool efficient process, and it’s becoming ued on a multi-year plunge, some closing in Ohio and western Penn- increasingly feeling priced out for companies to achieve particular more popular for companies here, think the cycle could turn around sylvania and people walking away of bankruptcy help, Bruce goals, like reducing labor costs or Gibbons said. this year. from production facilities, waiting added. other expenses, for example. Ohio is among only a handful of It’s unclear if the Fed will contin- for the price to turn around,” Gib- Those costs began to soar As costs go up, and some would- states to do this, she added, and oth- ue to hike interest rates sooner or bons said. “The question is, will in 2006 as bankruptcy codes be clients feel priced out of the mar- ers are looking to follow suit. later following a paltry increase of banks work with them or not? were amended, making the ket, a strategic bankruptcy may “With the new receivership law, 0.25 percentage points late last year, “We are expecting more work (in process more intensive and, seem like less of a good idea. those have ticked up a bit,” said but experts say it will move up more oil and gas related bankruptcies),” by extension, expensive. There’s also been an increasing Patrick Keating, an Akron bankrupt- — eventually. she added, “although we haven’t see — Jeremy Nobile level of would-be corporate filers cy attorney with Buckingham, The question is where the timing a lot of it yet.”

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PAGE 14 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS THE DISH There is a new kind of milk on area shelves Northeast Ohio entrepreneur He stumbled on the idea behind teurized at a low temperature in a la- Adrian Bota has launched Origin Origin Milk while visiting the or- bor-intensive process that he says Milk Company, which offers a new ganic, heritage farm where he improves its flavor and nutrient con- kind of milk that the company says sources his dairy products in tent. “is naturally higher in Vitamins A Wilmot, Ohio, which is in the heart Besides being healthier, Bota said and D and contains more protein of Amish country. that some people who have trouble than almost all other conventional “When I started (Piccadilly), I al- drinking regular milk may have an and organic milk.” ways wanted to source locally,” Bota easier time with A2 milk. “Scientists Origin Milk is currently on the said. “I knew about Guernsey cows, think some people who are consid- shelves at Heinen’s, Market District, but I couldn’t find them in Ohio. ered lactose-intolerant may actually Then one day I asked the owners, be intolerant of A1 and the homoge- ‘What are these cows?’ and they said, nization process,” he said. Lee Chilcote ‘Oh, they’re Guernseys.’” Although studies are underway, After making this discovery, Bota many scientists say it has not yet Some of the products Origin Milk Company offers. (Contributed photo) Chilcote is a embarked on an 18-month journey been proven whether A2 milk could freelance writer to license the cows’ A2 milk and sell solve lactose intolerance problems. and editor who it in grocery stores. breastfeed, because it’s also consid- which is considered a mutation from Moreover, people who have a cow- has written for Guernseys, which represent a ered close to the genetic makeup of its original composition. Over time, milk allergy should also stay away Vanity Fair, Next small percentage of cows in the breastmilk. milk’s genetic makeup changed due from A2 milk, they warn. City, Belt and United States, are known to produce According to an Origin Milk news to natural changes and human inter- Origin’s A2 milk has a yellow color other publications. He is the founder the highest percentage of A2 milk of release, A2 milk has 12% more pro- vention, and A2 milk became much and a rich, creamy taste. The compa- of Lit Cleveland. all types of dairy cattle. The milk tein, 33% more Vitamin D, 25% less common. ny also offers half-gallons of choco- contains only the A2 type of beta-ca- more Vitamin A, 15% more calcium In order to bring his product to late milk. The product is sold in plas- Constantino’s and the Grocery in sein protein rather than the more and 30% more cream than nearly all market, Bota had to secure approval tic jugs that feature a sleek Ohio City, and will soon hit other common A1 protein found in regu- other milk. Hence its claims that its from the Dairy Division of the Ohio black-and-white label designed by stores, too. The rich, creamy milk lar milk. product “harkens back to the way Department of Agriculture, which local firm Indie Foundry. sells for $5.99 a half-gallon, slightly Bota, who has two small children, milk used to be … just as it was when initially was leery. So far, the product has been sell- more than organic milk. has always been passionate about it was delivered in a glass bottle to Eventually he prevailed, and now ing well, he said. “I knew we had a Bota is founder of Piccadilly Arti- healthy food. “I wanted to offer a your front stoop.” he’s ramping up production and ex- good product, but I can’t believe the san Yogurt on Coventry Road in fresh, creamy milk packed with vita- “Guernseys don’t process out all panding to more stores. Origin Milk reception has been so great,” he Cleveland Heights, which offers or- mins that I feel good about giving the nutrients from the grass, so it has will soon be on the shelves at Whole said. “People like the product and ganic, locally sourced self-serve my children,” he said. a higher fat and nutrient count, but Foods, too. the story, and now we’re getting it in frozen yogurt, and Piccadilly Arti- A2 milk is considered closer to the it’s the ‘good fat,’” he said. “It has Bota’s main competitor right now front of people.” san Creamery in University Circle, makeup of breast milk than A1 milk, 4.8% fat naturally, whereas whole is the a2 Milk Company, an Aus- which uses liquid nitrogen to make so it’s easier to digest, he said. Bota milk has 3.6%.” tralian firm that sells its product at To contact Chilcote, send an email to smooth, creamy ice cream on the and his wife fed their children goat’s About 95% of milk produced Whole Foods. Bota claims that his [email protected]. You also can spot. milk when she could no longer worldwide contains the A1 protein, product is superior because it’s pas- follow him on Twitter @leechilcote. 20160314-NEWS--15-NAT-CCI-CL_-- 3/10/2016 1:49 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 15 Focus

SMALL BUSINESS Q&A - P. 17 z TAX TIPS - P. 18 z GRANTS PLUS - P. 19

Big Fun looks to the future Steve Presser tries to retool his 25-year-old Coventry Road mainstay in the Internet age

PAGE 20 20160314-NEWS--16-NAT-CCI-CL_-- 3/10/2016 11:59 AM Page 1

PAGE 16 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS Sorbothane’s success is not a shock BY SHARON SCHNALL in-law Robert Boyd and Raymond while the remaining 20% is primari- enhanced insole product line. The type, as was the case 31 years ago Yozwiak. ly from sales of insole products, de- new design will incorporate a deep- with Kick-eez of Woodland, Wash. [email protected] “It’s a little like Silly Putty with a veloped and owned by Sorbothane er heel cup with more substantial Today, the company holds exclusive memory,” co-owner Boyd said and marketed to retailers, Church Sorbothane inlays in the heel. A new rights to recoil pads made with Sor- The next time you’re in a cafe, ab- about the material in a phone inter- said. graphite arch insert is also in devel- bothane that are mounted to shot- sent may be the machine-producing view. “I tell people to reach and Last year, the company produced opment. gun or rifle butts. The pads prevent noise associated with creating a fruit squeeze your arm; the body has more than 2 million units, ranging in shoulder injuries from the backward smoothie. Consider Sorbothane elasticity and has recovery.” size from a part that is 0.18 inch momentum of a fired rifle. Inc.’s role in making that appreciat- So, too, does Sorbothane. wide to 0.25 inch tall to a sheet that The recoil pads are particularly ed difference. Boyd’s sales and marketing histo- is 2 feet by 2 feet. “We never popular with skeet or trap shooters, The Kent-based company creates ry with industrial products includes The 64,000-square-foot head- who fire 400 to 500 rounds a day, products related to isolating vibra- 28 years with the B.F. Goodrich quarters, located at 2144 state Route lost money. said Cheryl Poppe, general manager tion, reducing shock and depressing Company of Akron, followed by, in 59, includes a production facility of Kick-eez. noise. Notably, Sorbothane gaskets 1983, being a 20-year employee with featuring 15 urethane-pouring ma- We had good “Sorbothane absorbs shock in all since 2010 have eliminated noise in Sorbothane’s former two owners, chines, which cost about $150,000 directions,” she said. “Rubber only Vitamix commercial and residential BTR then Trelleborg. He told his last each. The employees, 26 in all, are absorbs in two directions: North blenders known as The Quiet One. employer — Trelleborg — to contact dedicated primarily to manufactur- years and bad and South.” Typically, ratting, shaking or vi- him if and when they wanted to sell ing. Engineering, testing and sales Currently 150 different Kick-eez brating activities can reduce the life Sorbothane, at that time part of the employees also operate from this lo- years, but we items are made at the Sorbothane of a component. That’s where Sor- Swedish company’s automotive di- cation. plant. Last year, Poppe said, the bothane’s gaskets and other prod- vision. Competition comes from other never had a family-owned company purchased ucts come in, said David Church, the Boyd wanted to buy the business materials — cardboard, silicon, rub- 60,000 units manufactured by Sor- president of the company. because it had a proven track record ber, foam — that have shock-ab- bothane. “It has a high ability to take the with BTR and Trelleborg. sorbing properties. Those materials, negative “The unique part of the business shock and disburse the energy “We never lost money. We had however, exhibit delays in returning is that we can manufacture one through the material,” he said. good years and bad years, but we back to shape after initial or repeat- year. ... I had batch of 10 units for one customer Sorbothane, a proprietary ure- never had a negative year,” he said. ed impacts. and another batch of hundreds of thane, was invented around 1975, as “The fact that I had run the business “Sorbothane has a bigger temper- confidence we thousands for another customer,” a joint initiative between former and knew the market, that was a fac- ature window,” Boyd said. “A lot of Boyd said. The manufacturing owner BTR of London and the British tor. I had confidence we could materials at elevated temperatures process is nimble and does not in- government. The performance of in- maintain it and grow it.” get very lively. They don’t rebound. could maintain volve a lengthy set-up time: switch- soles, elbow gear, knee pads, and? A few years later, Boyd got that They can’t support a load. From an ing from one order to another takes Wilson baseball gloves are enhanced call, the brothers-in-law became the engineering perspective, that’s our it and grow it.” place in minutes, Church said. by Sorbothane. Likewise, anti-vibra- new owners and the company has benefit.” Product color, thickness, weight tion mounts used in space travel and performed in keeping with Boyd’s The company expects its growth — Robert Boyd and durometer (scale of hardness) anti-vibration pads with washing original expectations. will continue by attracting entrepre- co-owner, Sorbothane Inc. can be varied to meet custom spec- machines contain Sorbothane’s neurs and engineers wanting prod- ifications. shock-absorbing material. uct shock and vibration solutions. “(Clients) know you’ll work with “There’s Sorbothane all around An eye for growth Church said other growth is expect- them,” Church said. you, you just don’t see it or notice Gross sales revenues for the com- ed by increasing the company’s vis- “They know we won’t pigeonhole it,” Church said. pany’s last eight years have annual- ibility in the insole business. For ex- The company said it’s impactful them ... We’re adding value to their The eponymously named compa- ly been $4 million to $5 million; 80% ample, this year the company plans — no pun intended — when it gets product and now their product has ny was acquired in 2003 by brothers- reflects industrial client applications to unveil its Ultra Graphite Arch, an involved early with a client’s proto- the proper solution.” WE KNOW ALL SMALL BUSINESSES AREN’T THE SAME. THAT’S WHAT MAKES US DIFFERENT.

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CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 17

Q & A: Kathy Blackman Owner, The Grog Shop

Over her 23 years as owner of The Grog Shop, Kathy Blackman has fielded numerous questions about why she and two partners started the Cleveland Heights concert club. Truth told, Blackman never had any master plan for the Coventry Road punk and indie music mainstay beyond wanting to take a chance on a cool idea. However, that hasn’t stopped what many refer to as “The Grog” from serving as the charmingly grungy launching pad for national acts such as Fall Out Boy, Bright Eyes, Bruno Mars and Kid Cudi. Crain’s sat down with Blackman to discuss her two decades in an industry that takes more than a love of music to be successful. — Douglas J. Guth

What was your initial vision for What are the challenges of run- What has been your experience the club and how did that vision ning a music venue in Cleveland? as a woman operating a change over time? It’s tough figuring out what’s going music venue in a mostly male- I didn’t start out saying I’d own to bring people in and what isn’t. dominated industry? a great rock club and become a There are bands I think should Initially, I was sort of intimidated springboard for all these up-and- bring in 300 people and 50 show by agents and managers. I became coming bands. I had two partners up. It’s a crapshoot. Cleveland is more confident with time and who got me into it, and I quickly constantly changing, too. When experience. I meet these agents realized how much I enjoyed it. we first opened, the population and I’m like, ‘You’re so young!’ We started at the Mayfield Road of the neighborhood was younger, But every band that’s come end of the street. The newer club and everyone was going out. We through here has had a positive opened in 2003 along with a used to be the bar you’d go to no experience. We’ve created an downstairs bar called the B-Side matter what. Now we’re more of atmosphere that isn’t corporate, Lounge. At first we dabbled in a a destination spot. There’s more generic or impersonal. What we bunch of stuff and had music once competition in town, and we lack in presence we make up in or twice a week. It was two years constantly have to be aware personality. Yes, it’s a dirty rock into our tenure that music took of what other clubs are doing. club with a small stage, but over and everything else fell away. We’re not trying to kill each other, everyone leaves here saying though. It helps all of us to foster they had the best time. What are your day-to-day duties? a community of support. a band now I look at how many all the time. You have to be I’ve taken a step back from the bar How does The Grog Shop make Facebook friends they have, or passionate about it. If you’re not aspect. Now I concentrate on book- What do you need from a per- money when music is accessible what their presence is online. loving what you’re doing, it’s ing the bands and putting together sonality standpoint to be a suc- in so many different ways? We don’t really have progressive probably not going to be outside shows for acts that have cessful music club owner? There’s nothing like seeing a band radio in town, so I rely on a successful. You also realize it’s outgrown us. I’m very rarely here You have to have a thick skin, as live. I’ve had people say I should network of people to find music: OK to not be open every night. at night anymore, unless there’s a you’ll lose shows or something will stream my shows, but I want I have my go-to hip hop guy and I saw just having the jukebox on band I really like. Initially, I did every- bomb. If I took every loss personal- (patrons) here, not sitting at go-to punk and metal people. and three people show up was thing. I booked the bands, bartend- ly, I’d be a wreck. I’m a laid back, home. Years ago, music fans College radio has been a great not worth it. If nothing’s going on, ed and fixed the toilets if need be. easy going person. I can’t imagine had to figure things out for support system for us, too. I don’t try to force it. I made a When I’m here and not working, I if you were tense and rigid this themselves. They came here conscious decision to take a step have to jump behind the bar and would be the business for you. You loosely knowing what genre of What advice would you give to back when I had kids. There was a help out. I miss the music and the can have a great week and 10 hor- music was playing, even if they someone who wants to operate time when this was my life and it excitement, and sometimes feel out rendous days where you’re losing weren’t familiar with the band. a music venue in Cleveland? was very enjoyable. But there’s of touch. I couldn’t do this without money every night. I’ll never get They had to go to shows to see if For the first five or 10 years, you only so long you can exist my amazing support staff. rich off this, but I enjoy what I do. a band was any good. When I book have to commit to being at the bar that way.

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PAGE 18 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS

TAX TIPS: Peter A. DeMarco Beware of the tax bill if renting homes for the Republican convention When Cleveland hosts the Repub- lican National Convention in July, it will bring thousands of visitors to the city looking for lodging for the four- day event. The demand will far surpass the available hotel space, giving Cleve- landers a big incentive to clear out for a week or two and make their permanent homes available for short-term rentals. That enables the locals to not only escape the certain gridlock, especial- ly considering the scale of expected security measures, but also pocket a tidy sum that would easily pay for a nice vacation away during the con- vention. The rental rates stated online through various sources suggest Clevelanders are looking to bring in anywhere from $5,000 to $50,000 or more by renting out their abodes. The potential windfall is exciting, Peter A. DeMarco is vice but it could come with hefty tax con- president and director of tax sequences for residents wading un- services for the regional aware into rental tax rules for the accounting and business first time. consulting firm of Meaden Get a jump start on 2016 with a list of possible NEW CLIENTS. The tax rules on rental arrange- & Moore, headquartered in new clients. Download the Book of Lists now ments are a thicket. Cleveland. and let your best year of business begin. Property owners who are in the business of renting know well that NOW CRAINSCLEVELAND.COM/LISTS rental income is taxable. deducted. Typically, when a property owner When a dwelling is used for both rents a dwelling, the rental income rental and residential purposes, ex- minus expenses is added to the penses must be calculated for the property owner’s income as taxable full year and divided proportionally at the property owner’s normal in- across the two uses. come tax rate. Adding a hefty rental income fig- Expenses that can be deducted ure to taxable income, even after the from rental income might include complex rental expense deduction, mortgage interest, real estate taxes, could potentially move a taxpayer maintenance, insurance, utilities, into a higher tax bracket. Connected, casualty losses and even deprecia- That would further erode the ex- tion. pected windfall from renting the When renting out a principal resi- home in the first place. Engaged dence, however, the rules are a little In addition to federal income tax, different. there are other possible tax implica- and Invested If the rental is for 14 days or less in tions to consider. a given calendar year, the IRS has de- Cuyahoga County and the city of termined that amount is not taxable. Cleveland charge a combined 8.5% And if the rent is not taxable, the ex- bed tax on “transient guests” occu- Located in the Knowledge and penses also are not deductible. pying quarters that provide sleeping The arrangement is short-term accommodations. Innovation Center at the Cleveland enough that it flies under the IRS It is the property owner’s duty to Heights Public Library and within the radar. collect that tax from renters and re- Many visitors to the convention mit it to the proper tax authorities. Monte Ahuja College of Business, will be staying for less than two Hotel operators also routinely collect weeks, so that will give residents who and remit sales tax on overnight ac- Cleveland State University’s Small rent their homes some simplicity commodations. from a tax standpoint. They will be It is not clear whether tax author- Business Development Center is able to enjoy their rental income as a ities will seek to collect such taxes on fully invested in the Cleveland true, tax-free windfall. short-term rentals associated with However, plenty of people coming the convention. business community. With consulting to Cleveland for the convention will Given the ready availability of be looking to stay much longer than rental property listings on the mar- and technical assistance as well as the four-day event itself. Some will ket, however, it likely wouldn’t take plan to be in the city for more than a great deal of effort for those au- export assistance, the CSU SBDC two weeks. thorities to search out residents helps entrepreneurs and small And those are the folks most like- who made their homes available for ly to look for more the comfortable rent. businesses sustain and grow to accommodations found in a home The excitement continues to 216-321-1633 · www.csusbdc.org compared with a hotel room. build around the upcoming Repub- ultimately enhance the local economy. That means residents need to be lican National Convention in Cleve- cautious about renting their homes land, but residents who rent their for longer than 14 days. homes without understanding the Doing so means adding that rental possible tax consequences will find income to taxable income for the it far less exciting when the tax bill year and calculating expenses to be comes due. 20160314-NEWS--19-NAT-CCI-CL_-- 3/10/2016 12:02 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 19

Grants Plus helps nonprofits land tough-to-get dollars

BY JUDY STRINGER velopment arm of a local nonprofit. ting the standard for the sector when age relationships with foundations Textoris said word of mouth brings An attorney by training, she gravitat- it comes to higher quality grant writ- and other funding sources, Grants new business to Grants Plus as exist- [email protected] ed toward the fundraising world in ing.” Since its founding, the firm has Plus’ work is diminished. ing clients learn to effectively manage search of “something more meaning- helped nonprofits raise more than Such was the case with the Boys & the grant process for themselves. The nation’s private and commu- ful” and immediately felt at home $70 million in grant funding. Notable Girls Clubs of Cleveland. From 2012 to 2015, revenues grew nity foundations doled out a record with grant writing. After a couple of Northeast Ohio clients include the President Ron Soeder hired Stein- 170% and the staff nearly tripled. $51.8 billion in grants in 2012, the lat- years, however, Steiner got the itch to Rock and Roll Hall of Fame and Mu- er to write grants in 2010, after losing The company has added three est year data is available, according to move on. She founded Grand Plus on seum, Case Western Reserve Univer- one grant writer after another to larg- more new employees this year. To New York-based Foundation Center. what the Bainbridge native calls her sity, Cleveland Metropolitan School er nonprofits or foundations. When date, it has worked with organiza- In its November 2014 report, the “practical approach” to grant seek- District and the Boys & Girls Clubs of its full-time development director left tions in 21 states. center projected giving would grow ing. Getting a piece of the $50 billion Cleveland. in 2014, Soeder said Grant Plus While others, such as the Weather- to nearly $55 million in 2013 and con- grant pie is more of an art than a sci- In 2015, Steiner said, Grants Plus’ stepped up to fill the void, acting as head 100, have noted the company’s tinue to outpace inflation in 2014, all ence. There are few standards when clients secured nearly three out of the organization’s a virtual fundrais- growth, Steiner is most proud of the of which is great news for legions of it comes to grant writing and even every four grants they sought. Along ing arm. culture she and her executive team Northeast Ohio nonprofits seeking less related to developing and main- with grant writing, Grants Plus pro- “Then they were very instrumental have cultivated. Scheduling is flexi- funding. taining relationships with current vides guidance on prospecting and in bringing a couple of candidates ble, and employees get access to 50 The bad news: Competition for and potential funders. relationship building. Textoris, who forward for that lead role,” he said. paid hours annually for professional those grant dollars is on the rise, too. “I saw ways that it was working for joined the team in 2013 shortly after “The person we hired actually came development. Team meetings regu- “Nonprofit organizations are hav- me,” Steiner said, “and thought I returning from a decade in San Fran- from Lauren.” larly tackle issues like stress-reduc- ing to become more savvy in grant could do more than just work for one cisco, credits its grant success rate to With the position filled, Grant Plus tion strategies and personal goal-set- seeking because the competition has organization … and even train other a focus on long-term relationships, went from full-time grant writer to ting. Also, each quarter the staff rates gone up,” said Lauren Steiner, presi- people in my approach.” rather than one-time requests. part-time prospector. Yet, “there was the company via an anonymous sur- dent and owner of Grants Plus, a Dana Textoris, Grants Plus’ execu- “We help put these clients front no kind of crying about the downsiz- vey. Earlier this year, The American Cleveland-based fundraising con- tive consultant of client engagement, and center in the relationship with ing the role that they play,” he said “It Psychological Association named sulting firm that operates out of the said there are a lot of grant writers out funders, building their reputation,” was really just a very fluid transition.” Grants Plus the leading small busi- Hanna Building at Playhouse Square. there, but it’s a practice many people she said. According to Soeder, the organiza- ness in the country for having a psy- “They want to figure out what edge “muddled through and figured out.” Of course, Steiner added, it’s a bit tion’s grant base has grown from the chosocially healthy workplace. they can get.” “What Lauren was able to do with like the “teaching a man to fish” $1 million-to-$1.5 million range to “It’s an exciting time,” Steiner said Steiner launched Grants Plus in starting Grants Plus is to really raise proverb. Once clients have a firm about $5 million since it began work- of the company’s future. “The path is 2007 following three years in the de- the bar,” Textoris said. “We are set- grasp on how to establish and man- ing with Grants Plus. pretty wide open.” TAKING THE BUSINESS OUT OF BUSINESS BANKING FOR OVER 5O YEARS KJK HAS...

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PAGE 20 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS

Trusted Advisors. Respected Advocates.SM SMALL BUSINESS Nostalgia neve

BY DOUGLAS J. GUTH relies on in-person interaction with an array of nostalgia-fueled wares. Larry Crystal Rob Glickman Tony Hartman [email protected] “Brick-and-mortar is taking it on the chin,” said Presser, who moved Big Fun opened its doors on April to his 3,400-square-foot shop in Fools’ Day 1991 — an appropriate 2005 from a smaller space across the launch date for a store that sells a street. colorful assortment of new and vin- “I have to increase the number of tage toys, gag gifts, retro video bodies coming through the front games and naughty greeting cards. door.” However, as owner Steve Presser To that end, Big Fun has expand- Kimon Karas Bob Kracht ;mb@l-m approaches his 25th year in Cleve- ed its social media presence, be it land Heights’ Coventry neighbor- through sharing a recently acquired hood, the business challenges his cache of Simpsons’ toys or a trailer novelty emporium faces are no for the new Pee-wee Herman movie. laughing matter. Presser also hired Cleveland ma- He’s withstood the impact of big- gician/entertainer Dr. U.R. Awe- box behemoths, while online shop- some as a means to draw walk-in ping has presented an ever greater traffic on weekends. threat to a specialized business that Though Big Fun saw a 2%-3% in- Chris Patno Chuck Royer David Schaefer

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CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 21 ver goes out of style at Big Fun

crease in revenue last year over 2014, quarter-mile of real estate. Eschew- the past 12 months haven’t neces- ing local shops for the ubiquitous big sarily been easy for the toy seller. box or online service sets a danger- Early last year, Presser closed his ous precedent for the region. West Side location on Clifton Boule- “It’s not about getting the best vard near Lakewood to focus on the deal, it’s about supporting your Cleveland Heights flagship. community,” Presser said. Meanwhile, the Clifton store re- “Cleveland can only support so opened as a pop-up shop during the many new bars and restaurants. We holidays to less-than-expected sales. need retail.” “It was disappointing the sales Big Fun typifies the unique nature weren’t there,” Presser said. “We of the Coventry shopping district, didn’t lose money, but we anticipat- said Angela Hetrick, executive direc- ed a larger turnout.” tor of the Coventry Village Special Presser and his staff are not con- Improvement District. tent with the status quo while e- “Every community needs inde- commerce sites like Amazon dig into pendent businesses. It’s what keeps potential profits. those neighborhoods interesting,” The shop owner beefed up his on- Hetrick said. line selling through eBay, and in Jan- “Nobody moves to a place to be uary launched an e-commerce plat- closer to a Target.” form on Big Fun’s store website As long as there’s a yearning for (bigfuntoystore.com). G.I. Joe, Star Wars, Nintendo and My “People from out of town visited Little Pony, Coventry’s one-and-only us and said they loved our stuff, but “funky department store” will con- wanted to order online,” Presser said tinue to endure whatever a shifting about the shift in strategy. “We want retail economy can throw at it, its Jessica Dukles and Mason Luxmore explore Big Fun on Coventry Road. (Photos by McKinley Wiley) customers to come to the store. If owner said. we’re not doing that, we still value First up is a 25th anniversary cele- their business.” ing with no online presence, but cost of goods, rent and insurance has nity is the small business owner, he bration, complete with cake and re- While online sales are slow, Press- most haven’t survived,” he said. effectively made electronic retailing said. duced prices throughout April Fools’ er expects those figures to increase “Others have supplemented their in- an inescapable reality. Mom-and-pop stores create jobs weekend. as visitors get wind of the system via comes by going online. We’re one of Though Presser recognizes the and help neighborhoods thrive, said “That’s the beauty of my busi- social media and word-of-mouth. those.” need for entrepreneurial flexibility, Presser. Coventry hosts more than ness,” Presser said. “Nostalgia never “Stores around the country are go- An across-the-board hike in the the bedrock of any healthy commu- 50 independent businesses in a goes out of style.” Two Nights, Two Speakers Global Management Center Michael D. Solomon Entrepreneurship Speaker Series Speaker Series “Project Management - “The Nexus of A Critical Skill For Your Career” Entrepreneurship, Mentorship & Philanthropy” March 30 March 31 Denis Wolowiecki, M.R. Rangaswami, Kent State MBA ‘94 Kent State MBA ‘78 Vice President, Co-Founder and CEO Global Purchasing Sand Hill Group Husqvarna Group

Register Now: http://bit.ly/COBAspeaker 7 P.M. — Kent State Hotel and Conference Center Free, open to the public, limited seating available. Register today! For more information, visit business.kent.edu. 20160314-NEWS--22-NAT-CCI-CL_-- 3/11/2016 1:36 PM Page 1

PAGE 22 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS Business of Life

Filling mailboxes with local treats BY LYDIA COUTRE

Carol Emeruwa regularly sent ginger cookies to her friend purchased a CSA share and got the subscription daughter when she was away at college, and once her for his grandmother. friends got a taste, they got packages, too. “As a surprise, his grandma was getting flowers each Now, so can anyone in the United States. week because she can’t garden anymore,” Wingenfeld In 2014, Emeruwa launched Finally Ginger, an arti- said. “And so for her it was a huge treat, and every week sanal ginger cookie baking business. she was super surprised.” You can find her cookies in cafes from New York to For now, she and her old pickup truck are limited to California, in corporate gift boxes or in your mail, once Cuyahoga County deliveries, but she welcomes those a month. For a total of $75, she’ll mail you a dozen cook- nearby to pick up their bouquets if interested. ies each month for three months. “The fun part of it is I don’t know what I’m going to She’s one of a few Northeast Ohio businesses looking be harvesting that week,” Wingenfeld said. What she to add some fun to the mail, so it’s no longer just bills does know is they’ll always be local, freshly cut and and ads. You could get various ginger cookies from unique. Unbox Akron, created by the Devil Strip pub- Emeruwa’s Cleveland kitchen, a bouquet of flowers lisher Chris Horn, holds box-opening events at a bar or grown in the Cuyahoga Valley National Park or a box of a new business where people can come and meet each products from Akron. other as well as the writers and editors of the Devil Strip. “It’s like Christmas every month,” said Roger Riddle, And for the handful of subscribers who have moved curator of Unbox Akron, which began mailing a $39 away and miss home, “We hope that the subscription monthly collection of Akron products in December. box makes them a little homesick and they’ll want to “You have no idea what’s going to be in it.” bring their talents back to Akron,” Riddle said. Meghan Wingenfeld, farmer and owner of Wild Fox & A different subscription box recently contacted Flower, delivers unique bouquets handpicked from her Emeruwa to arrange a way to include her cookies in flower farm weekly all summer to anyone who purchas- their deliveries. They’re still working out the details, but es a Community Supported Agriculture (CSA) share. She if it comes to fruition, Emeruwa will need to make 5,000 relies on the $299 CSA investments at the start of the to 10,000 cookies. year to get her going into the season. The box her subscribers receive every month could be With the investments, she buys her seeds, soil and full of original ginger, ginger chocolate, or orange gin- supplies. And once they bloom, she and her mom will ger cookies, but always ginger — her daughter’s favorite. drive them to your door every week for 13 weeks. “It’s nice to receive something every month — a sur- Last year, which was Wingenfeld’s first in business, a prise, something sweet or any type of gift,” she said.

We don’t just see people for who they are; we see 20160314-NEWS--23-NAT-CCI-CL_-- 3/11/2016 1:39 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 23

In the past nine months, Above, Carol Emeruwa (right) bakes the cookie that are part of 98% her subscription-based of kids participating in United delivery service. Below, she carefully Way-funded literacy programs are packages them. now reading at grade level.

(McKinley Wiley photos)

them for who they can become. 20160314-NEWS--24-NAT-CCI-CL_-- 3/11/2016 10:47 AM Page 1

PAGE 24 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS BUSINESS OF LIFE Source Lunch

John Petures Jr. has always wanted to help people. In his role as president and CEO of the Akron Com- munity Foundation, then, it seems he has found a good fit. In fact, Petures has spent most of his career in the nonprofit sector after running for public of- fice at age 21 and winning a seat on city coun- cil in his small hometown in western Pennsylva- nia. From there, he moved to the United Way, and later to the Arthritis Foundation. To Petures, the Akron Community Foundation, which comprises hundreds of funds, allows donors to serve the unique needs and charitable interests of their community. In other words, it allows donors to connect to what’s John Petures Jr. important to them. And to Petures, philanthropy is all about the human aspect. “People don’t give to causes; people give to people.” NONPROFIT — Sue Walton

What’s the difference between How many new funds have been One of your goals has been giving through a community established since you arrived? to transform the Akron FIVE THINGS: foundation and giving through Community Foundation into Since I stepped into the role of pres- A SPECIAL PLACE a private foundation? ident and CEO in 2008, the founda- a more “donor-centric” Most advisers suggest having at tion has helped individuals, nonprof- organization. What’s your Beau’s on the River is a least $5 million to $10 million in it organizations and businesses in definition of donor-centric? memorable spot for charitable assets to start a private our community establish more than The donor, not Akron Community Petures: He was dining foundation. The entry point for a 250 funds, growing the total num- Foundation, decides how to give there when he was donor-advised fund at a community ber of funds at the community back. Each donor has a unique mo- offered his job at the foundation to more than 520. We’ve tivation and approach for their LUNCH SPOT foundation is far less (as little as Akron Community $5,000 at Akron Community received gifts of nearly $70 million charitable giving. We work hard to Beau’s on the River Foundation). And that’s a donation, in that time. Most importantly, understand their charitable wish- Foundation. He tries to (in the Sheraton Suites) not a fee. It costs nothing to start a though, this growth has enabled es so we can help them give back return as often as he can. 1989 Front St. donor-advised fund here, while our fund-holders to distribute near- in the way that is most meaningful Cuyahoga Falls starting a private foundation can ly $60 million in grants back to the to them. We keep them informed, ALL ABOUT FAMILY cost thousands of dollars in fees. community since I started here — not only about their fund’s growth Petures has three children As a public charity, community with a record $9.2 million in grants but also about what’s happening The meal during our past fiscal year alone. in the community. We invite them and three grandchildren, foundations offer the greatest tax A tuna salad sandwich, a on tours of local nonprofits, to benefit from any type of nonprofit all of whom live out of grilled chicken sandwich, What’s the level of corporate community forums and to events — up to 50% of the donor’s adjust- town. He enjoys spending a shared order of fries, ed gross income — while gifts to involvement in the funds? where they can network with one another and leaders in the non- as much time as possible a ginger ale and a diet private foundations are deductible This is a growing sector at the with them. soda. only up to 30% of AGI. We are also community foundation. Four years profit sector. We can also offer in- exempt from private foundation ago, Medical Mutual of Ohio estab- sight into specific causes and or- ganizations and can help donors rules that dictate a minimum 5% lished the Medical Mutual Commu- A NATURAL GEM involve their entire family in giving, The vibe payout annually and a 2% excise nity Investment Fund with $5 mil- He loves spending time but only if they want those things. Beau’s features a tax on investment income. Donor- lion, the largest single gift to that in the Cuyahoga Valley advisers have the flexibility to sup- point. Since then, we’ve worked contemporary, upscale What are your goals for the National Park, which he port charities as frequently as they with their leaders to grow the fund setting, but the show- future of the foundation? considers a wonderful wish while growing their fund for and identify charitable opportuni- stoppers are the floor- future impact. We handle the fund’s ties that match their interests. With more than 520 established asset to Northeast Ohio. to-ceiling windows that paperwork, investment manage- Through their fund, they have in- funds, there are very few needs in Cycling on the Towpath overlook the Cuyahoga ment and due diligence. The donor- vested $1.3 million back into non- our community that aren’t being Trail and golf are on his River. The restaurant’s advised fund-holder simply tells us profits programs in Summit County. positively impacted by a donor or list of fun activities, too. openness allows for which nonprofit organizations they But that’s a large business. A trend fund of the foundation. I expect views of the water from want to support, and we make sure we’ve noticed among small and we will become an even greater several seating areas. their giving reaches their target. midsize businesses is transition in catalyst for philanthropy and an FAVORITE ALBUM One of the biggest differences be- ownership. When owners sell, it’s even more relevant and vital re- “Goodbye Yellow Brick tween a donor-advised fund and a likely the largest influx of income source in improving the quality of Road” by Elton John The bill private foundation is privacy. All they’ll ever experience. Many want life where we live, work and raise $29.20, plus tip gifts to, and grants from, private to do something charitable while our families. FAVORITE TV SHOW foundations are public record, but also offsetting taxes. We’ve had a donor-advised fund-holders can variety of business owners enlist “Modern Family” keep gift-giving anonymous. our charitable help. 20160314-NEWS--25-NAT-CCI-CL_-- 3/11/2016 3:07 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 25 KASICH CONTINUED FROM PAGE 1 of RPM International Inc. Bernie tions to the Kasich committee are makes them the favored recipient of Moreno, president of auto dealer the Jones Day law firm, $28,600; Su- CONTRIBUTORS TO THE JOHN KASICH-SUPPORTING corporations and wealthy individu- Bernie Moreno Cos., gave $25,000 to perior Beverage Group, $21,600; PVS NEW DAY FOR AMERICAN SUPER PAC als who want to have an impact on Conservative Solutions PAC, which Chemical Inc., $18,900; and Inde- CONTRIBUTOR ADDITIONAL INFORMATION AMOUNT elections. While contributions from supports Mario Rubio. pendence Excavating, $17,900. Northeast Ohio to New Day top $1.3 Like official campaign commit- New Day has been spending most George Pearl Rd Ltd Restaurateur Tony George $500,000 tees, however, they must file com- of its $10 million on television adver- million, the Cleveland-Lorain-Elyria Independence Excavating Co. DiGeronimo family $125,000 plete campaign reports with the tising in key primary election states and Akron metro areas gave Hard Rock Rocksino Milstein family $100,000 $854,300 to Kasich for America. Federal Election Commission. that has supported Kasich and tried However, Super PACs may not An interesting note: George also to knock down his opponents. It be- Jacobs Investments Inc. Jeff Jacobs, chairman and CEO $100,000 contribute to a candidate’s cam- gave $2,700 to Hillary for America, gan placing ads on Ohio television Dan Gilbert Principal owner, Cleveland Cavs $100,000 paign committee and may not work Democrat Hillary Clinton’s official stations at the beginning of March, a Albert Ratner Co-chairman emeritus, with that committee to map out a campaign committee. That $2,700 is little more than two weeks before Forest City Realty Trust $69,800 joint spending strategy. Instead, the maximum contribution that can the Tuesday, March 15, Ohio prima- Milton Maltz Founder, Maltz Museum they are barred from working with a be made to a candidate’s official ry election. It bought $272,000 in air of Jewish Heritage $50,000 campaign committee. time from the four major Northeast candidate and his committee and Nesco Inc. Robert Tomsich, founder $50,000 must create and place their own ad- However, the FEC does collect Ohio television stations. Ray Park Park Corp., I-X Center $50,000 vertising. information on the employers and Super PACs, unlike candidate Perhaps not surprisingly, the po- associations of individual contribu- campaigns pay top dollar for televi- Richard Pogue Senior adviser, Jones Day $40,000 litical action committee supporting tors and the Center for Responsive sion advertising. By law, candidates Political Education Patterns Political arm of Local 18 the sitting Ohio governor is the only Politics compiles that information to can only be charged “the lowest unit Operating Engineers $40,000 presidential Super PAC to get signif- show the impact of individuals who rate.” Super PACs pay what the mar- Ernest Mansour Mansour Gavin LPA $25,000 icant Northeast Ohio support. Right work for the same employer may ket will bear. As a result, a 30-second Dan T. Moore III Dan Moore Cos. $25,000 to Rise USA, a Super Pac that sup- have on a politician. So, for example, ad on WEWS-TV’s 6 p.m. news for Parker Hannifin Corp. $24,000 ported Republican Jeb Bush, re- employees of Medical Mutual have early March cost the Kasich for pres- ceived $100,000 from I-X Center given $36,150 to Kasich for America. ident campaign $400. New Day for Terrence Fergus FSM Capital Management $23,000 owner Ray Park and $25,000 from Other Northeast Ohio employee America is paying $750 for an ad on Source: Center for Responsive Politics analysis of Federal Elections Commission filings Frank Sullivan, chairman and CEO groups making the largest contribu- the same news program.

ADVERTISING

Crain’s People on the Move promotional feature showcases Notheast Ohio job changes, promotions and board appointments. Guaranteed placement in print, online and in a weekly e-newsletter can be purchased at www.crainscleveland.com/peopleonthemove.

ARCHITECTURE NONPROFITS NONPROFITS NONPROFITS Donald Rerko Maria Foschia Mark Batson Doug Bennett

Principal Chief Operating Officer Chief Operating/Chief Vice President of External Information Officer Affairs Makovich & Pusti Architects, Lutheran Metropolitan Ministy Inc. Council for Economic Council for Economic Maria Foschia, MBA, LSW, has Opportunities in Greater Opportunities in Greater Makovich & Pusti Architects, Inc. been named Lutheran Metropolitan Cleveland Cleveland is pleased to announce that Donald Ministry's (LMM) Chief Operating Rerko, AIA has recently joined our firm as a Officer. Foschia previously served as LMM's VP of Mark will oversee Information Technology, Facilities In his new role at the Council for Economic Principal. Don will assume responsibility for Adult Support and Advocacy, brings a strong back- and Transportation for the Council for Economic Opportunities, Doug is focusing on development, strategic growth of the firm while managing special ground in business administration and leadership Opportunities. His core focus is to improve the integration and implementation of a broad range of projects and integrating into our distinctive culture and was responsible for LMM's recent attainment effectiveness and efficiency of operations in order legislative and community relations activities relative of commitment to its clients. Don has 28 years of of COA accreditation. Foschia will lead LMM to a to better serve the Council's client base. He has to the strategic direction of the organization. extensive experience in planning, architecture, new phase of service to our community, aligning more than 20 years of experience in change man- Previously, he led external affairs and government engineering and construction of educational, programs and workforce to meet goals and best agement, IT system implementations, strategic plan- relations in the healthcare, telecommunications and healthcare, corporate, governmental and practice in service delivery. www.lutheranmetro.org. ning and government regulations. He holds an MBA banking industries. Doug graduated from Hampton technology businesses. from Case Western Reserve University and B.A. in University and is an active member of Alpha Phi Business Administration from Kent State University. Alpha Fraternity, Inc. and Sigma Pi Phi Fraternity. FINANCIAL SERVICES Margaret Thresher Dr. Thea Wilson David F. Folkwein Vice President of Marketing REAL ESTATE and Communications Vice President for Children Debbie Garson Executive Vice President, and Families Council for Economic Senior Commercial Banker Realtor/Broker Opportunities in Greater Council for Economic Fifth Third Bank Cleveland Opportunities in Greater Keller Williams of Greater Cleveland Cleveland Folkwein's primary responsibilities Margaret is responsible for brand development, include management of all internal and external communications as well as Dr. Wilson is responsible for managing the opera- Proudly affiliated with RealtyOne for commercial banking operations within Northeastern traditional and social media relations at the Council tions of Early Head Start, Head Start and Parental 26 years, Debbie is now elated to Ohio including loan and deposit products, treasury for Economic Opportunities. She spent nearly eight Involvement programs. She has nearly 40 years of join Keller Williams Greater Cleveland. With over 35 management, and other fee services. Folkwein has years as the Director of Communications for the early childhood development experience in a public years of experience; Debbie is a licensed Broker, more than 29 years experience in Commercial Rock and Roll Hall of Fame and Museum. She has school system and spent 11 years in administration. holds the CRS (Certified Residential Specialist), Banking. He has been with Fifth Third Bank for more than 20 years of experience in government, She has 13 years of experience teaching college GRI (Graduate, Realtors’ Institute), CNS (Certified ten years, initially as Senior Vice President of corporate and non-profit communications in Cleve- level courses as well as creating workshops and Negotiation Specialist) designations, and is a top Commercial Banking with Fifth Third in Central Ohio land and in Phoenix, Arizona. Margaret graduated facilitating training for parents, teachers and other producing Realtor/Broker. Debbie chose to affiliate and most recently as Executive Vice President of from John Carroll University with a B.A. degree in professionals. Dr. Wilson received her Doctorate in with KW because ‘this team adheres to my business Commercial Banking in Northwest Ohio. English. Education Leadership from Argosy University. model... the client always comes first.’

or more information or questions regarding advertising in this section, please call Lynn Calcaterra at 313-446-6086 or email: [email protected] 20160314-NEWS--26-NAT-CCI-CL_-- 3/11/2016 1:41 PM Page 1

PAGE 26 z MARCH 14 - 20, 2016 z CRAIN’S CLEVELAND BUSINESS

dates, said Cleveland managing di- Software Inc. and HIMSS, the neers used the HIMSS Innovation rector Brian Hurtuk. Healthcare Information and Man- Center on the fourth floor of the GLOBAL CENTER Katie Watts, a Colliers vice presi- agement Systems Society, which has Global Center for training and test- CONTINUED FROM PAGE 1 transformation, and we need the dent who will lead the Global Center leased the entire fourth floor for its ing of IT system interoperability. HIMSS Innovation Center. ful and financially viable strategy. right companies in here to do that. It leasing, believes that first-class ten- The original idea, which dates to Kate Barney, Hyland’s marketing Those aspirations focused on using continues to evolve.” ants will be attracted to the existing the mid-1980s, was to create a center portfolio manager for the health care what was then called the medical It’s also designed to get the build- first-class tenants. that would attract hospital operators industry, said the Westlake company mart and a new convention center to ing financially to at least break- “We’ll work to identify those part- from around the country to a build- uses its Global Center space as a col- ratchet up Cleveland’s standing as a even status. The convention center ners, pharmaceutical companies, ing that showcased medical equip- laboration space among customers major center in the medical and budget for 2016 projects the Global even legal, even finance, find the ment and services the way the Mer- and partners. health care industries. Center bringing in revenue of $1.4 true collaborators that are going to chandise Mart had become a place “It’s a nice opportunity to have a As the medical mart, the building million, but with a net loss of benefit the existing tenant-partners, where interior designers flock to vis- space where people can get away, so was conceived as a place where $883,803. as well as themselves and continue it the showrooms of furniture and we’ve met with a lot of hospitals who suppliers to hospitals and doctor’s Leahy said he hopes the Global the theme of collaboration and inno- furnishing makers. are partners and Dell, for example, offices could show off their wares. Center will break even “in three vation,” she said. But it was little more than an idea and also if we’re thinking about Though some of that merchandis- years or so.” Cuyahoga County, Among the current tenants are until a group that included Cleve- some new ideas, we’ll bring our ad- ing goes on, the center’s leaders now which owns the complex, subsidizes Cardinal Health, a leading manufac- land Clinic CEO Dr. Toby Cosgrove, visory board there,” she said. “It’s a see it more as a place where hospital its operation. turer of medical and surgical prod- former Cuyahoga County commis- nice, secluded space and (it) sets a leaders and other health care profes- “What Colliers brings us is great ucts, including gloves, surgical ap- sioner Tim Hagan and Forest City tone for the conversation.” sionals can collaborate with medical local resources and the national and parel and fluid management Realty Trust’s Sam Miller began kick- device companies and suppliers of international help through the con- products; GE Medical Systems, ing the idea around in 2005 and which supplies a range of medical brought in Chris Kennedy, a friend of health information systems to trans- nections they have in their company Now and then form health care in the 21st century. that are broader than the Cleveland imaging and diagnostic equipment; Hagan’s and then president of MMPI Filling the remaining vacant space market,” said Fred DeGrandis, man- and Johnson Controls Inc., which The Global Center, specifically Inc. MMPI operated the Merchan- with the right mix of tenants, the aging director of the Global Center. designs and builds specialized venti- HIMSS, in January played a key role dise Mart, a center of the furniture center’s leaders hope, will attract “Our job here is to create the space lation and air control systems for in a convention center event spon- and furnishings industry in Chicago. more medical and health care con- but then to get people to come and surgical suites. sored by Integrating the Healthcare Kennedy’s buy-in propelled the ferences and conventions to the ad- walk in the neighborhood and create A number of firms leasing space or Enterprise USA, a nonprofit that is project forward and the project jacent convention center. collaboration.” partnering with tenants are in the working to improve how the health gained legitimacy when developers “This is a full-court press and from burgeoning field of health informa- care industry digitally shares infor- in Nashville and New York City our standpoint this is very precious tion technology where creating the mation like medical records. moved to steal Cleveland’s idea. space we have left,” said Mark Leahy, Rubbing elbows ability to digitally exchange patient The convention center conference Those competing facilities never got general manager of the convention Colliers will be working from a tar- information among hospitals has attracted more than 1,000 health in- off the drawing board. Ground was center and the Global Center. “We get list of 100 companies who will fit become a critical concern. Among formation technology professionals, broken for the convention center are working to piece together this best into the existing tenant base, the health IT firms at the center are according to Healthcare IT News. In and medical mart in 2011. The com- mosaic that will power health care from among 300 potential candi- Cisco Systems Inc., Dell Inc., Hyland addition, another 500 software engi- plex opened in 2013.

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CRAIN’S CLEVELAND BUSINESS z MARCH 14 - 20, 2016 z PAGE 27 LARGEST EMPLOYEE BENEFIT SERVICES FIRMS The List Ranked by Number of Area Professionals (1)

PROFESSIONAL NAME OF FIRM EMPLOYEES TOTAL CLIENTS THIS ADDRESS EMPLOYEES IN IN NE FIRM TOP LOCAL EXECUTIVE YEAR PHONE/WEBSITE 2016 2015 NE OHIO OHIO (%) COMPENSATION SERVICES TITLE

Willis Towers Watson 123 110 195 NA NA Program strategy, design and pricing, health condition Gina Kashuk 1 1001 Lakeside Ave., Suite 1500, Cleveland 44114 management, pharmacy management, retirement managing consultant (216) 937-4000/www.willistowerswatson.com strategy and plan design, compliance

Oswald Cos. 119 106 263 85 Fees, commissions Employee benefits strategic consulting, group benefits Robert J. Klonk 2 1100 Superior Ave., Cleveland 44114 brokerage, integrated health and wellness management, CEO (216) 367-8787/www.oswaldcompanies.com retirement plan consulting

Selman & Co. 110 100 113 5 Commissions and Administration of life and health insurance programs for David L. Selman 3 6110 Parkland Blvd., Cleveland 44124 fees banks, credit unions, affinity groups and insurance president, CEO (800) 735-6262/www.selmanco.com company partners

Mercer 101 103 105 NA By project, Retirement and risk management, health and welfare Scott Kiper, principal, 4 200 Public Square, Suite 1000, Cleveland 44114 commissions, fixed benefits, investment consulting and management, talent Cleveland/Pittsburgh office (216) 830-8000/www.mercer.com fees, hourly rates strategies and management leader; Larry Scherer, principal, retirement office leader

CBIZ Inc. 96 91 242 85 NA Group health benefits consulting and administration, Michael P. Kouzelos 5 6050 Oak Tree Blvd. South, Suite 500, Cleveland 44131 retirement plan solutions, payroll, COBRA, flex, property president, Benefits & Insurance (216) 447-9000/www.cbiz.com and casualty, life insurance and HR consulting

Dawson Consulting Group, an AssuredPartners Co. 91 38 325 75 Commissions, fixed Industry-specific solutions that enable business owners to James F. Harmon 6 1340 Depot St., Rocky River 44116 fees attract and retain employees, while growing their president, employee benefits (440) 333-9000/www.dawsoncompanies.com business

Gallagher Benefit Services Inc. 85 65 95 85 Fees and Brokerage and consulting in health and welfare, Mark F. Alder 7 1111 Superior Ave., Suite 1601, Cleveland 44114 commissions retirement, wellness, human resources, compensation, area president (216) 623-2600/www.ajg.com health care analytics, benefits compliance

Findley Davies Inc. 80 80 94 64 Fee-for-service Health and group benefits, retirement consulting, Rob Rogers 8 1300 E. Ninth St., Suite 850, Cleveland 44114 based on hourly actuarial services, defined contribution plan principal (216) 875-1900/www.findleydavies.com rates recordkeeping, defined benefit plan administration

The Fedeli Group 60 50 128 80 By consulting Employee benefit plan design including consulting, Umberto P. Fedeli 9 5005 Rockside Road, Fifth Floor, Independence 44131 services, compliance, wellness, self funding and data analytics, president, CEO (216) 328-8080/www.thefedeligroup.com commissions, fixed voluntary and executive benefits, group purchasing fees

Alpha Group Agency Inc. 57 56 82 90 NA ERISA and DOL compliance, ACA advisory, wellness John Wain, managing partner; 10 4200 Rockside Road, Independence 44131 stategies, online administration and enrollment, HR Jim Schade, Adrienne Vichill, (216) 520-3300/www.thealphaga.com support Kevin Mackay, Brian Spear, principals

CALL THE EXPERTS FOR YOUR EMPLOYEE BENEFIT AUDIT

Contact Chris Villari + [email protected] + 216.363.0100

Employee Benefits International 31 31 31 80 Fees and Health care consulting, corporate wellness, 401k and Jim Dustin, president 11 4700 Rockside Road, Summit One, Suite 540, Cleveland commissions retirement planning, worksite marketing and property and Brian Hirsch, COO, co-founder 44131 casulty (216) 264-2707/www.employeebenefitsint.com

Vantage Benefit Advisors Inc. 30 30 30 95 Commissions and Insurance, compliance, human resources and technology, William McCormick 12 6200 Rockside Road, Cleveland 44131 fees medical, dental, vision, disability, voluntary products, flex president, CEO (216) 642-7878/www.vanfinbenefits.com benefits, retirement plans, Medicare supplements

CPI-HR 29 29 41 180 Consulting fees, Human capital management firm combining consulting, Jim Hopkins 13 6830 Cochran Road, Solon 44139 commissions, brokerage and administration for unique client outcomes CEO (440) 542-7800 /http://cpihr.com administration fees

Huntington Insurance Inc. 28 26 52 35 Commissions and Consulting and strategic planning in: population risk Craig Mottice 14 200 Public Square, Cleveland 44114 fees management, on-site clinics, data analytics and predictive executive vice president, (888) 576-7900/www.huntington.com modeling, results-based wellness and health care reform managing director, Northeast Ohio

Chapman & Chapman Inc. 27 24 34 93 Commissions, fees Employee benefits strategic consulting, benefits Walter K. Chapman 15 2307 E. Aurora Road, Suite B13, Twinsburg 44087-1952 brokerage including voluntary and worksite, retirement CEO (440) 287-7600 /www.chapmanandchapman.com plan consulting, executive benefits

Britton Gallagher 25 22 100 75 Commissions and Strategic benefits plan; health care insurance (medical, PJ Insana 16 1375 E. Ninth St., Cleveland 44114 fees dental and life), health reform compliance, wellness partner; president, (216) 658-7100 /www.brittongallagher.com programs and employee incentive programs Employee Benefits

Buck Consultants, A Xerox Company 24 24 24 80 By project, Health and productivity, retirement, communications, Audrey Cervas 17 6000 Freedom Square, Suite 100, Independence 44131 commissions, fixed compensation, benefit audits, benefit outsourcing consulting actuary (216) 642-4254/www.xerox.com/hrconsulting fees, hourly rates

Trinity Pension Consultants 24 24 32 85 Retainer, fixed fees, Actuarial consulting, administration, plan design, plan Anthony Warren 17 202 Montrose West Ave., Suite 290, Copley 44321 by project documents principal (330) 668-3747/www.trinitypension.com

Aon Hewitt 22 30 25 NA NA Health and benefits, retirement and investment, talent Ryan Black 19 5005 Rockside Road, Suite 1000, Independence 44131 and rewards, HR operations services partner, market leader, (216) 573-9700/www.aonhewitt.com Cleveland/Pittsburgh

The J.P. Farley Corp. 21 20 21 65 Fixed fees Health plan administration services James P. Farley 20 29055 Clemens Road, Westlake 44145 president, CEO (440) 250-4300/www.jpfarley.com

Todd Associates Inc. 21 15 56 80 Commissions, fixed Health insurance, disability insurance, dental insurance, Edward J. Hyland Jr., president; 20 23825 Commerce Park, Suite A, Cleveland 44122 fee, project based vision insurance, life insurance, executive compensation Randy Cumley, Tim Fitzpatrick, (440) 461-1101/www.toddassociates.com and benefits, section 125 Plans, wellness programs executive vice presidents

BDO 16 16 210 70 Fixed fees Recordkeeping, TPA administration, retirement plan Robert M. Littman 22 32125 Solon Road, Cleveland 44139 funding, medical plan design/consulting, discrimination Ohio managing partner (440) 248-8787/www.bdo.com testing, government filings ERISA compliance

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. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. (1) Professionals who design, administer or sell employee benefit programs and consultants. 20160314-NEWS--28-NAT-CCI-CL_-- 3/11/2016 10:46 AM Page 1