Hopkins Can Soar Again Litigators Traffic Is Down 17% Since United Departure, but Rebound ‘Takes Time’ Are Uniting by JAY MILLER Communications Executive

20150202-NEWS--1-NAT-CCI-CL_-- 1/30/2015 3:48 PM Page 1

$2.00/FEBRUARY 2 - 8, 2015

Longtime Shaker Heights shopping center is getting a drastic transformation in $70M project — P. 4 The Greater Cleveland Sports Commission’s 79-member board has a new leader, same mission — P. 5 Hopkins can soar again Litigators Traffic is down 17% since United departure, but rebound ‘takes time’ are uniting By JAY MILLER communications executive. “But it takes [email protected] time.” Cleveland may be recovering from its Air service from Cleveland Hopkins In- “de-hubbing” faster than some other to dispute ternational Airport hasn’t returned to the cities, said one air service consultant. level it was a year ago, before United Air- “Cleveland’s done a really good trans- lines closed its hub in Cleveland. formation from a hub downsizing to at- Between November 2013 and Novem- tracting a lot of low-cost carriers into the ber 2014, passenger traffic through market with Frontier and Spirit and jet- court’s call Cleveland Hopkins International Airport Blue,” said Mark Sixel, president of Sixel has fallen more than 17%, according to Consulting Group Inc. of Eugene, Ore. tabulations by the city of Cleveland-run ”They’ve probably been one of the Local lawyers unhappy with airport. The United flights that account- most active airports in the country at re- ed for much of that decline, which car- cruiting new service in the last couple ried many travelers flying into Cleveland years,” Sixel said. “A lot of the other dropping of commercial docket only so they could change planes for places like Cincinnati and Memphis, By JEREMY NOBILE their ultimate destination, will never re- hubs that got downsized with all the (air- [email protected] turn. line) mergers, are struggling quite a bit But since United’s announcement on more than Cleveland. I can’t even think Cleveland-area litigators are imploring Cuyahoga Feb. 2, 2014, three new airlines have be- of another non-hub market that’s done County Common Pleas Court General Division gun service out of Hopkins to a number as well as Cleveland.” judges to reconsider a decision to eliminate the of cities where United formerly offered Sixel’s firm, which has not worked county’s generally popular and effective commercial nonstop service, and more may be on the with Cleveland Hopkins, has helped docket. way. That, passengers have reason to communities from Portland, Ore., to Ft. But whether the court — dedicated to the resolu- hope, should lead to lower fares. Lauderdale, Fla., add service. tion of often complex business-to-business cases like Also, the loss of United’s hub is In 2010, Sixel helped Toledo Express liquidations, trade secret disputes, noncompete con- prompting airport planners to re-evalu- Airport map out a new air service devel- tracts and shareholder disagreements — will be re- ate the terminal configuration to make a opment plan. stored or remain on the cutting room floor in Cuya- better experience for travelers. United hoga County is unclear. was the sole airline to use the airport’s D Reaching for the skies Originally proposed in Ohio by the late Chief Jus- concourse. That concourse was designed tice Thomas Moyer and championed by litigators, for service handled by short-haul, re- Smith said he has two airlines he is the commercial docket was the result of a July 2008 gional jets that flew flights that have been hoping to attract, though he would not decision by the Ohio Supreme Court to test out the cut. divulge their names while negotiations business court in Cuyahoga, Franklin, Hamilton, Lu- And Europe may be easier to reach. are continuing. He also said that he’s re- cas and Montgomery counties. The commercial Cleveland Airport System director viving an effort to attract international docket was formally adopted in Cuyahoga County in Ricky Smith acknowledged in an inter- service to Cleveland Hopkins, always a 2013 following a three-year pilot program. view in his office at Cleveland Hopkins priority for the area’s major corpora- The niche docket is intended to make the region that losing a hub is a “shocking, devastat- tions. more receptive to businesses by creating a court ing experience” for any city. That effort has been dormant for sev- specifically for cases between corporations and “Losing the hub was not one of the eral years, after airport officials in 2009 heard by a dedicated bench of judges — most recent- prouder moments for this community or said they were in contact with Lufthansa ly, in Cleveland’s case, four. this airport,” he said. “But I thought the Airlines — which had a marketing rela- However, following a Jan. 21 vote by Cuyahoga loss of the United hub was more a blow tionship with United predecessor Conti- County Common Pleas Court General Division to the community’s ego than we will nental Airlines — about service to Frank- judges to disband the court, administrative and pre- learn it to be on the community’s econo- Targets include Portland, Ore., San Diego fort, Germany. siding Judge John J. Russo said commercial cases will my or our air travel in the years to come.” and Seattle. “We’re now looking at other carriers to once again be randomly assigned to the court’s 34 But he believes that in the long run los- He said he expects that by the fourth determine where we might attract service judges. ing the hub may be for the best for his quarter of 2015, the airport will begin — somewhere in Europe,” he said. “Wher- The move to end the docket followed a Jan. 6 re- airport. seeing year-over-year growth in air ser- ever we focus it will be where (our compa- port by the chairman of the Supreme Court’s Com- Smith said he is meeting with leaders vice. nies) want to go; I’m not sure that Frank- mercial Docket Subcommittee that said Judge Cas- from the Greater Cleveland Partnership “There is life after de-hubbing,” said fort is the most preferred destination.” sandra Collier-Williams was unqualified to preside and its Air Service Demand Task Force to Benét Wilson, co-editor in chief of Air- Industry observers, including Sixel, over specialized and complex commercial cases, talk about what new service to attract. waysNews.com and a former airline See HOPKINS, page 21 See COURT, page 20 05

6 ALSO INSIDE: ENTREPRENEURS

74470 01032 some essential qualities ■ Pages 15-17 by Crain Communications Inc. Vol. 36, No. 5

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52 TIPS FOR YOUR BUSINESS #5: Position Yourself as an Expert Through Lengthy Online Content February 2

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4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015

INVESTMENT SALE Longtime Shaker shopping 26350 BROAD OAK PARKWAY OAKWOOD VILLAGE, OHIO center being transformed Former Van Aken plaza will be redeveloped as part of $70 million project By STAN BULLARD tenants to easily reach downtown [email protected] “The city did not want an Cleveland. incremental plan. They “That area has not had the When real estate developers and strongest (office demand),” Nosal railroad magnates Oris P. and Man- wanted a transformation.” said. VTXDUHIRRWPRGHUQGLVWULEXWLRQ tis J. Van Sweringen planned Shak- – Jon Ratner “To get the high rents that con- EXLOGLQJRQDFUHV )RUPRUH er Heights after 1905, sales litera- part-owner of the former Van Aken struction requires, they have to em- LQIRUPDWLRQFRQWDFW ture promised a residential area center in Shaker Heights phasize the efficiency of new OHDVHG RXUOLFHQVHGUHDO HVWDWHVDOHVSHUVRQ “without commercial invasion.” spaces. The idea of office above re- ¶FOHDU With retail and related uses rele- tail space has also been established 7HUU\&R\QH (6)5VSDFH gated to three districts that form Road work sets the table in the market.” just 7% of the suburb east of Cleve- \HDUVRIUHPDLQLQJOHDVHWHUPV WFR\QH#QJNIFRP land, the result was touted as a The project also capitalizes on $6.,1*35,&( “garden city” that also became a the city’s dramatic remaking of the Finding the right balance bedroom community shy of a cen- nearby intersection of Van Aken, Kevin Piunno, senior vice presi- Visit 1350 Euclid Avenue, Suite 300 ter of town or downtown core. The Chagrin Boulevard, Warrensville dent of office leasing at the Inde- TerryCoyne.com Cleveland, Ohio 44115 idea behind a looming $70 million Center and Northfield Road — pendence-based Cushman & redevelopment of the former Van where some 45,000 cars pass Wakefield Cresco brokerage, said Aken Shopping Center by RMS In- through daily — into a typical in- he’s optimistic about the project. vestment Corp. of Cleveland and tersection friendlier to pedestri- “It has to be pristine, and the re- the city of Shaker Heights is to fix ans. tail has to be there at the outset to that — and spur additional invest- That will allow Van Aken to feel attract office tenants” Piunno said. ment in older commercial proper- more connected to community The challenge, Beachwood- ties nearby. amenities such as Thornton Park based office broker Steve Egar said, “We are in a huge reset,” said Jon and its pool, ice arena and skate will be finding local office tenants Ratner, a member of the Ratner park. willing to pay top-of-market rents, Weatherhead Executive Education family that shares ownership of the The $20 million redo shifts traffic which will range from $20 to $30 a Van Aken center with the Miller and from Northfield Road south to a square foot at Van Aken. Shafran families. new marginal road ending at War- However, given the project’s Upcoming Courses RMS maintains a separate local rensville, along with other changes. scale, Egar believes 60,000 square 2/9-2/12/15 - Appreciative Inquiry: Leveraging portfolio from the other venture the The only part of the current Van feet is doable, although 100,000 Aken plaza that will remain intact is Strengths for Transformative, Lasting Change partners produced that is now For- square feet of office “would be look- est City Enterprises Inc., the giant the Fresh Market grocer, which is ing for trouble.” 2/12 - Beyond Conflict: Transforming real estate developer and owner. less than a decade old. Ratner said discussions are un- Conversations and Relationships “The goal is to produce a walka- The remaining ground will be re- derway with tenants he would not ble, bikeable area that will become cast into a combination of 80,000 identify that could occupy half the 3/13 - Crafting Your Leadership Vision a place for people in Shaker and the square feet of retail and restaurant office space. He said the design of region to gather and enjoy,” Ratner space, 60,000 square feet of office the buildings will be such that 3/16 - Introduction to Emotional said. “We have office and retail and space and 95 apartments. Retail will smaller tenants will be able to ben- Intelligence apartments in a new development go in on the first floor of the build- efit from prominent signage. The that is unique on the East Side be- ings and either offices or residences plan calls for a mix of conventional cause of its train station.” above them. Class A office space, 5,000 square View the full 2015 course catalog: The plan recasts significantly the The plan incorporates a parking feet of it first-floor office/retail site of Van Aken Plaza, a 100,000- garage of almost 400 spaces, a quar- space and the remainder open of- http://weatherhead.case.edu/ square-foot plaza dating from 1956 ter of them reserved for office ten- fice space. executive-education/catalog that was the first shopping center ants. “We’ll be able to accommodate a built by Ratner’s uncle, Albert Rat- On one level, the plan replaces variety of different office users who ner, Forest City co-chairman emeri- older, outsized retail space with new want different environments,” Rat- tus. The plaza, long a profitable retail space and incorporates apart- ner said. shopping center, now has substan- ments, the most popular type of current real estate development. The tial vacancy. With a dollop of second A true mix floor office space on one corner, Rat- new aspect — and the challenge — ner said, the property is so old “we are adding 60,000 square feet of of- Menesse, Shaker’s economic de- can’t continue to work with it.” fice space. That is a substantial velopment director, said the city Replacing the center could have amount, as much as is in the typical sees likely tenants as information been accomplished in a simpler suburban office building, and office technology, accounting, dental or fashion than the proposed Van development has slowed dramati- medical firms often run by Shaker Aken District. Luke Palmisano, cally the past decade. residents. president of RMS Investment, said Moreover, Shaker’s last big mul- The focus for the retail, Palmisano that could have been accomplished titenant office development was the said, is neighborhood services, from by demolishing the center and re- Tower East office building, which restaurants, food and beverage placing the vast parking lot be- launched suburban office develop- providers to fitness centers. tween the center and the Van Aken- ment in Cleveland when it opened Menesse said the plan eschews Warrensville Rapid Station with in 1968. destination retailers found in other sites for freestanding restaurants. A recently completed NGKF of- east suburban shopping centers. However, Tania Menesse, Shaker fice market survey shows an 18% Instead, it builds on the market of- economic development director, vacancy rate in the east suburbs, fer by the population of 107,000 said the city, which is contributing which is an 8 million-square-foot people within a 10-minute drive a parcel to the plan, sought more. market. However, most of that time with $92,720 in average in- “We want to create a sense of space is older, and the last two new come. On workdays, the population place, which requires more densi- east suburban multitenant office swells to 300,000. ty,” she said. The design also incor- buildings, finished seven years ago, Ratner, who lives in Shaker, said porates a courtyard as a communi- promptly filled up. he sees his family as typical cus- ty gathering place. Bob Nosal, executive managing tomers for the center, a handy place “The city did not want an incre- director of NGKF, said the Van Aken to ride a bike for a meal or other mental plan. They wanted a trans- District plays off the ability of the outing. He expects the reshaped formation,” Ratner said. rapid to allow residents or office district to be a reality by late 2016.

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FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 NEOSA is no Sports commission has longer: It’s ‘new blood,’ same vision now OHTech Growing organization’s Organization has revamped approach and expanded large board has changed its focus to the entire state

chairmen, but not its By CHUCK SODER optimistic view of work [email protected] NEOSA is making big changes. So big By KEVIN KLEPS that it needed a new name. [email protected] The Northeast Ohio Software Associa- tion is now OHTech. First, notice that “Northeast Ohio” is As the president and CEO of the Greater MARK STAHL Cleveland Sports Commission, David Gilbert Fred DiSanto, above, was the chairman of the Greater Cleveland Sports Commission’s board of gone. and his staff of 12 full-time employees take trustees from 2009-14. Carl Grassi, right, is the new board chairman. David Gilbert, above center, The organization — which spent much instructions, advice and criticism from a 79- has been the president and CEO since the sports commission’s relaunch in 2000. of the past year revamping its lineup of ser- member board of trustees. vices — is becoming more of a statewide There are prominent executives from the said of the board of trustees. “It’s very impor- friend of 20-plus years. group. Browns, Cavaliers and Indians on the board, tant for us to understand they’re our bosses. It’s forming partnerships with tech asso- They’re very helpful, but it’s important to ciations in Cincinnati and Dayton, and it’s as well as the owner of the Akron Rubber- Where it’s been Ducks (Ken Babby) and some of the most seek out and take their advice.” evaluating whether it could expand into prominent members of the Northeast Ohio Beginning in 2015, the board has a new When Gilbert left his position as director of other “underserved” regions, according to business community. chairman — Carl Grassi, firm president of community affairs for the Convention & Vis- chairman Gabriel Torok, who also is CEO “He answers to two boards,” said Fred McDonald Hopkins LLC, a Cleveland-based itors Bureau of Greater Cleveland to lead the of PreEmptive Solutions, a software com- DiSanto, the chairman of the sports commis- business advisory and advocacy law firm. It sports commission in 2000, he had a staff of pany in Mayfield Village. Torok cited sion from 2009-14, of Gilbert, who has also also has term limits for the first time. Grassi, two — himself and Rob Maron, who left the Columbus as a place where the group served as president and CEO of Destination who has been on the board since 2007, can organization in 2011. could expand. Cleveland (the city’s newly named conven- serve up to four years (a pair of two-year Fifteen years later, there are 13 full-timers, Becoming a statewide group would al- tion and visitors bureau) since 2011. “That’s terms) before giving way to a new chairman. a pair of part-time contractors and six regu- low OHTech to serve as a voice for informa- gotta be hard.” It’s the sports commission’s way of getting lar interns. Grassi estimates that the board of tion technology companies across the Gilbert, whose organization boasts that it “new blood,” as DiSanto put it, at the top, trustees was in the “27 to 30” range when state. Ohio doesn’t have such an organiza- has hosted or attracted 160 events since its while ensuring that its core mission — bring- DiSanto replaced former IMG co-CEO Bob tion, but lots of other states do, which relaunch in 2000, isn’t going to say it’s easy. ing top-notch, economically beneficial Kain as chairman six years ago. makes it easier for them to advocate for is- But the board — whose principals admit is events to the region — stays the same. “The organization, what Fred has done sues that matter to tech companies, ac- much larger than a typical nonprofit leader- DiSanto, for example, is now the vice chair- as chairman and where we are today is cording to Brad Nellis, president of ship group — is very beneficial, said the man, assuring that the 14-year board mem- incredible, quite frankly, from where OHTech. sports commission’s longtime CEO. ber remains in one of the sports commis- we started,” Grassi said. “And I What issues is OHTech interested in? “We try to get different individuals and dif- sion’s key positions. think it’s just the beginning. Workforce development is the big one, giv- ferent points of view to get different “The real truth of it is Carl was trying to get We are well-known. The en that tech companies are constantly talk- feedback and values,” Gilbert me out,” DiSanto said, joking about his See SPORTS, page 19 ing about how they can’t find enough good employees — especially software develop- The 2015 Greater Cleveland Sports Awards again drew a sellout crowd. ers. And who knows what other issues will SCOTT THEUS come up at the state or federal level. Nellis gave a hypothetical example: “If suddenly they decided web design projects have to be taxed at 50%, we want to be able to respond to that.” The word “Software” is gone from the name, too. That’s because about 40% of the group’s members are IT services companies — not software companies. Plus, Torok said OHTech is looking at how it could provide more services to non- tech companies “using software as a secret sauce.” He described how software is a key ingredient in medical devices, cars and even soap dispensers. The new name is just “the next step” in a series of changes that have been going on at the organization since it began a strategic planning process in 2013, Nellis said. Consider the tech talent problem. The organization — which is part of the Coun- cil of Smaller Enterprises in Cleveland — recently hired Patrick Antos as manager of talent services. Now OHTech has two full-time employees, though it also gets support from COSE and dozens of volunteers. Antos is working as a talent coach for local tech companies, and he’s tasked with creating events, blog posts and other content designed to help them figure out how to find and keep good employees. Antos also is building partnerships: He’s talking to local colleges to figure out how they could offer continuing education programs for people in the tech community. And a few OHTech members are now able to post open positions on a national job board called TechFetch, through a pilot See NEOSA, page 20 20150202-NEWS--6-NAT-CCI-CL_-- 1/30/2015 2:46 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015

Available - 10,000 SF Offi ce/Medical Bldg. Currently Used as a Dental Lab

12316 York Rd., North Royalton, OH

• 10,000 SF Offi ce/Lab Available for • Well Maintained Facility. Sale or Lease. • Ample Parking Area. • Masonry Construction • 480 Volt/800 Amps/3-Phase Power CONTRIBUTED PHOTO • Built in 2002. • Drive-in Door Shown are renderings of • Located on 3.68 Acres. • A/C Throughout the 108,000-square-foot office/warehousing David R. Stover, SIOR building that will be 216.839.2012 developed in Stow. [email protected] HannaCRE.com

Complimentary Major players collaborating In-flight Wi-Fi Brennan and Fogg are teaming up for office/warehouse building in Stow

AIR CHARTER SERVICE By STAN BULLARD On the other side of the table, first city approval within a month AIRCRAFT MANAGEMENT [email protected] Ray Fogg Jr., president of Ray Fogg, and hopes to finish the building this said his firm was “instantly interest- year, Fogg said. Two big-league local businesses ed” when contacted by Brennan’s After a seven-year hiatus before — Brennan Holdings LLC of Akron staff. and following the recession, the and Ray Fogg Corporate Properties “David Brennan has a storied ca- project is the third multitenant of- of Brooklyn Heights — are teaming reer,” Fogg said. “They understand fice/warehouse project of scale to up to develop a business park in real estate development so you are surface within the last year. Stow with a 108,000-square-foot of- not dealing with a novice and ex- Terry Coyne, executive managing fice/warehouse building they ex- plaining everything.” director and head of the Newmark pect to construct this year. Fogg also prized the site that Grubb Knight Frank’s Cleveland in- The combination is a classic case Brennan wants to develop initially, dustrial unit, called the project “a of one partner having the land and a 45-acre parcel on the southeast good move.” His only caution is the other having the expertise. corner of Seasons and Route 8. that he wonders if Fogg and Bren- Northern Ohio’s Premier Air Charter Service Joseph Weber, chief financial of- “This fills a void in our portfolio,” nan are being conservative and Serving the area with a fleet of 9 Jets ficer of Brennan Holdings, said Fogg said. “The nearest building we might be planning too small a Akron lawyer, real estate developer have is in Macedonia.” structure. 25-HOUR JET CARD NOW AVAILABLE • • and entrepreneur David Brennan Moreover, he said, the Seasons “I think there’s a ton of demand wanted to develop about 200 acres Road area is a part of northern out there,” Coyne said. www.FlySkyQuest.com • 216-362-9904 he has owned for several decades Summit County that is in the path For his part, Fogg said, “We’re [email protected] through BH Ohio Leasing at State of development from southeast bullish about the market. The in- Route 8 and Seasons Road, where Cuyahoga County. dustrial market is the healthiest an interchange was added during The partners plan to develop the property market in Northeast the Great Recession. first phase of the park with a build- Ohio.” “We started looking a year-and- ing facing Seasons Road with ceil- Fogg should know. He said the a-half ago to find the best partner to ings 32 feet high, fire sprinkler sys- first building in Euclid that his firm help us in all aspects of the job,” tems and multiple truck docks. finished last year is now full. Weber said. The firm selected Fogg Fogg said plans call for installing a Weber said Brennan and Fogg as a partner after considering mul- road that will open all 45 acres up to are undertaking a 50-50 joint ven- tiple local and national developers. development at the same time as ture in the project’s first phase. Brennan has industrial construc- the new warehouse goes up. Bren- Constructing a building of the tion and development expertise, nan and Fogg will sell sites for com- size Brennan and Fogg are plan- and Weber said the firm was im- panies that want to own their own ning, as well as a road to open the pressed by the building Fogg fin- buildings or have additional rental first 45 acres to development, will ished last year at Bluestone Busi- buildings, Fogg said. cost about $7 million, according to ness Park in Euclid. The partnership plans to seek its industry estimates.

Crain’s 2015 program nominations

Nominations are now open for all of Crain’s Cleveland ■ CFO of the Year Awards — Nomination deadline: Business’ 2015 programs. Deadlines for each of the July 10 programs are: ■ General & In-House Counsel Awards — Nomination ■ Health Care Heroes — Nomination deadline: Feb. 27 deadline: Aug. 21 ■ Women of Note — Nomination deadline: March 30 ■ Who to Watch in Manufacturing — Nomination ■ Archer Awards — Nomination deadline: May 1 deadline: Aug. 24 ■ Who to Watch in Technology — Nomination ■ Who to Watch in Marketing/Creativity — deadline: May 18 (noon) Nomination deadline: Oct. 26 ■ Forty Under 40 — Nomination deadline: June 1 For more information on how to submit your ■ Crain’s 52 — Nomination recommendations for each of the programs, go to: deadline: June 22 www.crainscleveland.com/nominations. 20150202-NEWS--7-NAT-CCI-CL_-- 1/30/2015 3:14 PM Page 1

FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Critics take aim at tax plan Lake Health partnering Some local business leaders believe cuts don’t go deep enough with major employers

By JAY MILLER of state projects for the Tax Foun- But Drenkard said this approach By TIMOTHY MAGAW when sick. [email protected] dation’s Center for State Tax Policy, mimics the failed approach of [email protected] “This wasn’t a huge change for us “is base narrowing, which can be Kansas Gov. Sam Brownback. A philosophically, but it formalized It’s no secret that Gov. John Ka- very bad for revenues while not giv- 2013 Kansas tax cut pushed Population health and account- the things we had been doing,” said sich would like to see the state per- ing a good amount of growth.” through by Brownback has not able care are hot topics in the rapid- Rick Cicero, Lake Health’s senior sonal income tax zeroed out. His During a speech last Thursday, stimulated job creation. Drenkard ly evolving health care industry, but vice president for business develop- last budget proposal was a step in Jan. 29, to the Ohio Association of said that’s because it is poor tax Lake Health — one of the few inde- ment. “The biggest difference is that that direction, even though the Community Action Agencies’ winter policy since the savings to these pendent hospital systems left in we’re working directly with employ- state Legislature didn’t cut it back conference, Kasich gave attendees a smallest of businesses are general- Northeast Ohio — believes it’s takers who have a clear focus on help- as far as he would have liked. peek into his tax reform plan, which ly too small to create jobs. ing those concepts to the next level ing their employees stay healthy Business groups generally sup- he is expected to unveil this week. Job growth in Kansas was faster with an experimental project in- and get healthier. This is really one port income tax cuts, but the gover- than only 12 other states since the volving three of the region’s major of the first collaborations that cre- nor’s current plan is not being met tax cuts took effect in January 2013, self-insured employers. ates a real partnership with employ- with enthusiasm. “The problems in Ohio are according to an analysis published Lubrizol Corp., Progressive Corp. ers.” The tax cut for small businesses much more numerous and Jan. 24 by The Kansas City Star. and the Lake County Schools Coun- The pilot project, which covers cil have teamed up with the health caught the Greater Cleveland Part- complicated than a lot of Drenkard said the Tax Founda- about 2,500 lives, is different than nership, which early this month un- tion would prefer a modest reduc- system to provide coordinated, pa- other care management programs veiled its advocacy plans for the other states, and in some tion in taxes for all taxpayers rather tient-centered care for employees in the region given that the health next two years, off guard. GCP is the cases are the worst in the than this targeted approach. who receive care from one of 300 of system is working directly with the regional chamber of commerce country.” He also pointed out that if he Lake Health’s primary care and spe- employers, which means no insur- with more than 10,000 members. lived in Ohio, he’d see if he could cialty physicians. Also, as part of the ance companies are acting as the “We share common goals with – Scott Drenkard change his arrangement with the arrangement, the employers are middle man. Other so-called ac- the governor but need to see the Manager of state projects, Tax Foundation so he would be a paying a monthly fee per member countable care organizations — like Center for State Tax Policy whole package before comment- contractor, and not an employee, to Lake Health to manage their em- those at University Hospitals and ing,” said GCP president and CEO because that would eliminate his ployees’ care. Summa Health System — deal with Joe Roman in an emailed state- He said his plan for a personal in- state income tax obligation. The idea is that a more hands-on, Medicare patients or the hospitals’ ment. “Our evaluation will be con- come tax cut would include elimi- Ohio doesn’t fare well in the proactive approach — a team ap- own employees. UH, too, has some sistent with our public policy agen- nating state income taxes for one foundation’s business tax climate proach, really — to health care will accountable care arrangements da, and we plan to weigh in strongly million small businesses — sole rankings for several reasons, in- nip chronic diseases in the bud. with commercial health insurers, for the benefit of all employers.” proprietorships and other busi- cluding its use of the commercial Moreover, Lake Health by midyear such as Anthem Blue Cross and The Tax Foundation, which cur- nesses with gross receipts of less activities tax, or CAT, and its com- promises to have all of its primary Blue Shield and Cigna, but none di- rently ranks Ohio a dismal 44th on than $2 million annually. The plex municipal tax system. care sites certified as patient-cen- rectly with employers. its list of State Business Tax Climate Columbus Dispatch, reporting on “The problems in Ohio are much tered medical homes — a weighty “For us, the dialogue with the Index, doesn’t need more time. the governor’s speech, said the ad- more numerous and complicated designation that recognizes medical provider community is very help- Cutting the income tax on the ministration estimates that will cut than a lot of other states, and in practices organized in a way that fo- ful,” said Dr. Tim Kowalski, Progres- smallest businesses, said Scott income tax revenue by $696 million some cases are the worst in the cuses on keeping patients well, sive’s chief medical officer. Drenkard, economist and manager and stimulate job creation. See PLAN, page 20 rather than only treating them See LAKE HEALTH, page 20

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015 TimkenSteel’s $200M caster off to hot start By RACHEL ABBEY McCAFFERTY has been serving as the company’s [email protected] manager of operations and processes for the Faircrest caster project. Three months in, about 10% to TimkenSteel invested about $200 15% of the steel made at Canton- million into the continuous vertical based TimkenSteel Corp.’s Faircrest bloom caster, which it extols as the plant is running through the com- largest in the world and the only pany’s new continuous jumbo one of its kind in North America. bloom vertical caster. Ground broke on the caster in April The caster is still in the hot com- 2012, and the first heat was pro- missioning phase, but by the end of duced on Oct. 21, 2014. the year, it will handle about 60% of At a total 270 feet — 180 feet the plant’s melt, said Nicholas above ground and 90 below — the Valentine, who will become the caster does create a striking image. Faircrest plant manager as of March Most of these types of casters are 1. By 2017, the plant plans to run curved, Valentine said, but Timken- 85% of its melt through the caster, Steel’s caster is unique because it is spokesman Joe Milicia said in an completely vertical. The molten email. The rest will be run through steel is extracted slowly from the an ingot pour. tundish — a holding container into If the caster was running at full which the metal is poured — at the capacity, it would have the potential top and split into three strands. to increase the plant’s shippable ca- When the steel reaches the bot- pacity by 25%, or 165,000 tons per tom, it’s cut into blooms. The year. blooms don’t create scrap, like in- That steel will be cleaner, and of gots do, Valentine said, so the a higher quality, said Valentine, who process is far more efficient.

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FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 GOING PLACES 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 JOB CHANGES Phone: (216) 522-1383, Fax: (216) 694-4264, www.crainscleveland.com ARCHITECTURE Publisher: John Campanelli Rob Divine ([email protected]) CBLH: Scott Weaver to project ([email protected]) Office coordinator: Denise Donaldson Editor: Elizabeth McIntyre ([email protected]) planner; Meagan Reynolds ([email protected]) Web editor: Damon Sims to project designer; Brian Hennies Managing editor: Scott Suttell ([email protected]) to project architect. ([email protected]) Digital strategy director: Nancy Hanus Sections editor: Amy Ann Stoessel ([email protected]) Reynolds Miller McNamara Dunstan ([email protected]) Audience development director: CONSTRUCTION Assistant editor: Kevin Kleps Eric Cedo ([email protected]) ([email protected]) Sports Web/Print production director: WELTY BUILDING CO.: Paul Miller Senior reporter: Stan Bullard Craig L. Mackey ([email protected]) to vice president, preconstruction. ([email protected]) Real estate and construction Production assistant/video editor: Reporters: Steven Bennett ([email protected]) Jay Miller ([email protected]) Government Billing: Michele Ulman, 313-446-0353 FINANCIAL SERVICE Chuck Soder ([email protected]) Technology ([email protected]) Dan Shingler ([email protected]) Credit: Todd Masura, 313-446-6097 OMEGA PENSIONS INC.: William Energy, steel and automotive ([email protected]) McNamara to associate vice Tim Magaw ([email protected]) Customer service/subscriptions: 877-824-9373 president. Health care and education Rachel McCafferty ([email protected]) Crain Communications Inc. WESTERN RESERVE PARTNERS: Manufacturing and energy David Dunstan to president. Jeremy Nobile ([email protected]) Finance Keith E. Crain: Chairman Research editor: Deborah W. Hillyer Rance Crain: President Smith Lambert Blower Wade ([email protected]) Mary Kay Crain: Treasurer INSURANCE Art director: Rebecca R. Markovitz William A. Morrow: Executive vice ([email protected]) president/operations Cartoonist/illustrator: Rich Williams INSURANCE PARTNERS AGENCY Chris Crain: Executive Vice President, Events manager: Jessica Rasmussen INC.: Chris Smith to vice president, ([email protected]) Director of Strategic Operations commercial insurance. Special events coordinator: Kim Hill KC Crain: Executive Vice President, ([email protected]) Director of Corporate Operations Marketing strategist : Michelle Sustar Dave Kamis: Vice president/production LEGAL ([email protected]) & manufacturing Advertising director: Nicole Mastrangelo Anthony DiPonio: BAKERHOSTETLER: Jeffrey R. ([email protected]) Chief Information Officer Vlasek to partner. Account executives: Thomas Stevens : Chief Financial Officer Dawn Donegan ([email protected]) Mary Kramer: Group publisher BROUSE MCDOWELL: P. Wesley Lindsie Bowman ([email protected]) Lambert, Lucas M. Blower, John Banks ([email protected]) G.D. Crain Jr. Founder (1885-1973) Laura Kulber Mintz ([email protected]) Mrs. G.D. Crain Jr. Chairman (1911-1996) Michael G. Craig, Michael G. Gorczynski Hamilton Delgros McCain VanBuren and Anastasia J. Wade to partners. technology; Brent McLean to FAY SHARPE LLP: John Zanghi and director of technology; Vern Baker Robert Sieg to equity partners; to director of support; Frank McGee Upcoming Editorial Feature George Huang and Tom Kocovsky to vice president, sales; Larry Yoder to non-equity partners; Phil Moy, to director of operations. Steve Haas and Sandra Koenig to Management Committee. BOARDS FAUVER, KEYSE-WALKER HIGHER & DONOVAN LPA: David A. Myers to of counsel. ADOPTION NETWORK CLEVELAND: Anita Miller HICKMAN & LOWDER CO. LPA: (Progressive Insurance) David S. Banas, Linda M. to chair; Lisa Buescher Gorczynski and Lauren K. EDUCATION to first vice chair; Marissa Hamilton to associates. Beechuk to second vice chair; MARSHALL DENNEHEY WARNER Ted Grabowski to treasurer; Thomas Dent to secretary. COLEMAN & GOGGIN: Stacy Northeast Ohio’s institutions of higher learning are Ragon Delgros to shareholder; CLEVELAND ANIMAL Kenneth W. McCain to associate. PROTECTIVE LEAGUE: David continually developing. This section examines what’s WESTON HURD LLP: Paul M. Shipp Mayo (Benesch Friedlander Coplan happening on the region’s campuses. to partner. & Aronoff LLP) to chair. FEDERAL RESERVE BANK OF MANUFACTURING CLEVELAND: Christopher M. Use this ad opportunity to showcase your organization’s BUYERS PRODUCTS CO.: Peter C. Connor (Sherwin-Williams Co.) course offerings, unique educational programs and Parker to marketing manager. to chair; John P. Surma to deputy professional development opportunities. chairman. GOODYEAR TIRE & RUBBER CO.: John T. Lucas to senior vice NAIOP NORTHERN OHIO president, chief human resources CHAPTER: Alex Russo (Cushman officer. & Wakefield/Cresco Real Estate) to president; Michael J. Sikora III ISSUE DATE: FEBRUARY 23 NONPROFIT to president-elect; Jeff Wherry to secretary; Gabe Adler to treasurer; AD CLOSE: FEBRUARY 12 CLEVELAND ORCHESTRA: Justin Mark Panzica to immediate past J. Holden to director of public president. relations. SOUTH ASIAN BAR REAL ESTATE ASSOCIATION OF OHIO: Neil Bhagat (Buckingham, Doolittle & CUSHMAN & WAKEFIELD/CRESCO Burroughs LLC) to president; REAL ESTATE: Jim Krivanek Anjali Chavan to president-elect; to senior associate; Jason Griffith Aanchal Soni to vice president; to sales associate. Ruchi Asher to secretary; Annal Vyas to treasurer; SERVICE Richik Sarkar to immediate past PROFESSIONAL TRAVEL INC.: Jill president. Dolfi and David Wood to regional YOUTH CHALLENGE: Colleen C. sales managers. Murnane (Frantz Ward LLP) to president; Christopher J. Carney STAFFING to vice president; Charles A. Koch ANDERSON | BIRO EXECUTIVE to secretary; Darren J. Hilliard SEARCH: Kenny Natterer to data to assistant treasurer; Stephen J. Contact Nicole Mastrangelo at 216-771-5158 or [email protected] specialist. Nock to at large; Ernest E. Vargo for more information on how to place your ad. to past president. TECHNOLOGY PARAGON CONSULTING INC.: Send information for Going John Ours to vice president, Places to [email protected] 20150202-NEWS--10-NAT-CCI-CL_-- 1/29/2015 4:10 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION An appeal Since 2009, Cuyahoga County has had a popular business court that has handled complex commercial cases that involved such matters as liquidations, non-compete contracts, trade secrets and shareholder disputes. One look at the numbers shows you how successful the commercial docket has been: 3,325 cases were filed on the commercial docket, and 2,966 (89%) of those were resolved or disposed of, according to caseload data from March 2009 to August 2014. That’s an average of about 50 cases filed and FROM THE PUBLISHER nearly 45 disposed of per month. But Cuyahoga County’s 34 elected judges recently decided to disband this successful enterprise. Staying afloat in a sea of email Objection! Their ill-conceived decision means cases will no I just checked my phone, and as I type steady drop in the expected response the assumption will be that we all should longer be assigned to an exclusive docket managed this, I have 272 unopened emails. time to email. be checking and responding to email as by four judges dedicated to those cases. Instead, the Almost all of those are junk: rental-car A reply to a work-related message is we dunk our bedtime Oreos. work will be randomly assigned to the 34 judges in offers, Groupons for gun ranges and now apparently expected in minutes in- But even during business hours, the common pleas court. That means these complex LinkedIn requests from un- stead of hours. inbox can be a productivity killer. commercial cases will be added to dockets already usually attractive young pro- Not only that, Paganini The biggest distraction at my desk is heavy with other civil and criminal cases. Or these fessionals in Eastern Europe. I added that thanks to device not online shopping or small talk with cases will be filed once again in federal court, which also get a steady stream of independency (the ability to colleagues or Candy Crush Saga. It’s the hasn’t operated as efficiently as the county’s com- messages from political par- jump from your desktop to ping my computer sings to me when I mercial court. ties, candidates and PR profes- your tablet to your phone and get a new email. sionals. (One press release ar- continue working) we are If I follow that ping, any momentum, Here’s a question we, like many others in the busi- rived last year with the subject nearing the death of the auto- creativity or focus I had rolling … gone. ness community, are left asking: How, exactly, did line “Are selfies causing head matic “out of office” email re- It’s like I voluntarily pushed the emer- Cuyahoga County’s commercial docket seemingly go lice infestations among ply. Turns out that these days, gency stop button on my brain’s assem- from boom to bust overnight? teens?” I read that one.) we are never “out of the of- bly line. And of course it takes time — Less than four months ago, Crain’s reporter Jeremy Of course, some of those JOHN fice,” just out of our minds. wasted time — to get idea production Nobile wrote about efforts to evaluate and improve emails are not junk. They are CAMPANELLI I understand that there are back up and running. on the business court’s success. Judge John Russo, meeting requests, questions crisis emails and customer- Time-management experts advise the court’s administrative and presiding judge, said from colleagues, feedback from readers, service messages that need to be an- checking your email only once or twice a in the October article, “This is about access to links to good articles from friends. I try to swered immediately, day or night. And I day, working through the inbox en read and respond as soon as possible. understand (grudgingly, maybe) that we masse and then not touching it. That’s justice.” But sometimes I can’t get to them for all probably need to scan our email at easier said than done, of course, and I’m Russo is correct. This is about access to justice. several hours or even days. least once a day while on vacation. But sure as heck not there yet. But it sounds The court’s move to disband the commercial docket, Holding off on answering every mes- we are creeping into dangerous territory like a wonderful system — for productiv- though, has made that access more difficult. sage is apparently becoming unusual. — destructive, unhealthy territory. ity and sanity. Businesses have the right to have their cases I was chatting recently with Joe Pa- Sending a non-urgent email at mid- I’d love to hear your email advice and decided by judges who understand the complexities ganini, CEO of Cornerstone IT in Men- night or 4 a.m. may show the recipient how you deal with your inbox (mine’s of commercial disputes. They have the right to have tor, about the trends he’s seeing in tech. how devoted you are to your job, but it now at 305 unread messages). Please disagreements settled in a timely manner, win or One of the things he mentioned was that also trains your recipient to expect re- send me a message, and I’ll get back to lose, so that they can get back to business. the business world continues to see a sponses at ungodly hours. Pretty soon, you … in a few days. And beyond the impact of these timely resolutions on individual businesses is the benefit it confers to all businesses. Commercial courts that speed the res- TALK ON THE WEB olution of business cases help to make the state — big boys!!! — Neil Dick Farmer put them there. and with this particular docket, our region — a more Re: Adding STEM jobs in Cleveland This latest hire of an offensive coordi- attractive place to do business. That’s good for the Re: Commercial nator who has never held that title before business we already have and for the ones we hope Advantages to Cleveland: The Cleve- is inexplicable and mind-boggling. I pre- to attract. land Clinic and Case Western Reserve foreclosures pick up sume the whole staff will be sent packing Why this particular avenue of access has been elimi- University. Disadvantages: The rest of Given that the developers won’t have after the 2015 season and the Browns nated confounds us. If the problem is political among Cleveland … unless some serious gentri- to feel this pain, I guess that leaves the will rebuild again and again and again fication starts to occur. taxpayers and the communities on the and again. the judges, they need to get over it. The complexity of Cleveland is a super hard sell (for business cases demands a certain level of expertise. hook. Thanks, job creators!! — Jim Danilof young STEM workers). And I am saying — Glkanter Spreading the cases across the dockets of nearly three this as someone who spent a lot of time Re: Fighting at GrafTech dozen judges only invites criticism and inadequate re- as a child in the area, who has no ani- sults. And if the issue is that some elected judges mosity toward Cleveland/Akron/Can- Re: That 2014 Browns draft International aren’t qualified to hear these kinds of cases, so be it. ton. — boboadobo GM Ray Farmer absolutely, positively, It’s very sad that one shareholder, Create a pool of judges who are and tap them for ex- unequivocally blew the 2014 draft. Nathan Milikowsky, has this much pow- tended terms presiding over the commercial docket. Re: Fairmount Properties’ His first two choices have turned out er over a corporation the size of hideously. One never bothered to study Graftech. We join the chorus of others in this community, joint-venture project a playbook, missed therapy, repeatedly The company has underperformed from the Cleveland Metropolitan Bar Association to in Chicago lied to the fans, and created unrest with since this dictator pushed aside the pri- the Greater Cleveland Partnership, in urging the As a Clevelander with strong business the team, and the first draft choice is or CEO and took control. He clearly has Cuyahoga County Common Pleas Court to reconsid- and family ties in Chicago, I am glad to buried deep on the depth chart. no clue what he is doing and now he er its decision to terminate the commercial docket. see for once that a Chicago group de- Farmer is much more a failure than wants to fire the president he put in Judges, we implore you, hear our appeal. cides to partner with a Cleveland outfit. the two draft choices because they did power and yield even more control with We are finally competing with the not choose to be on the Browns’ roster. the board of directors. — Rob York 20150202-NEWS--11-NAT-CCI-CL_-- 1/29/2015 1:56 PM Page 1

FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 PERSONAL VIEW State must account for oil decline THANK By DAVID McCLOUGH essential financial resources. McClough is an associate Instead of bombs and bullets, professor of economics at Ohio The recent decline in global oil the Saudis turn off the faucet. Northern University. YOU prices benefits Ohio drivers and Saudi Arabia is flush with re- will continue to do so for the near serves and able to withstand a long To all those who make a future. However, the governor and global demand for oil is in retreat. period of low oil prices. In contrast, difference in the lives state legislators need to now ac- More efficient cars in the United Putin, Iran and ISIS need the proof Cleveland families. knowledge how dependency on tax States permit Americans to use less ceeds of oil sales. Again, Columbus Every donation counts. revenue derived from oil produc- gasoline, which adversely affects has little influence in crafting for- tion leaves the state of Ohio sus- demand for oil. Economic weak- eign policy in Saudi Arabia. ceptible to international political ness in Europe and China further In contrast to consumers, oil and economic forces that it cannot reduces demand and dampens the producers are harmed by lower control. price of oil. prices. If the price falls below the Any budget dependent on a sev- Again, I see no way that politi- cost of production, producers will erance tax on “fracking” will be cians in Ohio can affect these pow- shut off the wells. No production, vulnerable to the capricious, if not erful determinants of global oil de- no severance tax revenue. whimsical, vagaries of the global mand. If Ohio’s budget is dependent on oil market. To be sure, politics is involved in severance tax revenue, then the If “fracking” is to alter the fiscal lower oil prices, albeit not domes- state will find itself facing a deficit. landscape of Ohio, politicians need tic politics. No, the federal govern- As unpopular as raising taxes is, to understand that the revenue ment did not release oil from the raising taxes and reducing spend- 1.800.ELK.OHIO stream is neither constant nor strategic reserves to cajole voters ing is less popular. elkandelk.com/community guaranteed. Pooling severance tax shortly before the November elec- The solution is to apply common revenue in a trust fund creates a tions, and it is unlikely that the sense. Rather than pretend that oil revenue stream that will serve the U.S. government is able to influ- production is predictable and that residents of Ohio long after the ence a particularly major oil pro- severance tax revenue will exist shale is depleted of the black gold ducer to ramp up production to forever, representatives of the citi- many have come to see as salva- flood the market to suppress the zens of Oho (and their progeny) tion. price. can establish a trust fund into Global oil prices are in decline Saudi Arabia controls the oil which the sporadic revenue stream for many reasons, none of which market. If the Saudis want the price resulting from “fracking” is de- Are you ready anyone in Columbus affects. The to rise, production would be re- posited. effect of a surging U.S. dollar reduced until the desired price is Conservative investment of the for April duces the price of oil, which is achieved. While the United States funds can generate income long af- showers and priced in dollars. When the dollar deploys ships, planes, drones and ter the oil and gas are gone and re- May flowers? appreciates, U.S. dollars buy more troops to affect global events, the gardless of the price of oil. foreign goods. The most notable Saudis manipulate oil prices. At issue is whether to seize the import is oil. So while Americans I contend that the Saudis are us- opportunity to create a mechanism CALL TODAY FOR YOUR COMPLIMENTARY ANALYSIS! are enjoying the benefits of cheap- ing oil to adversely impact oil-pro- to fund state government in perpe- er oil and gasoline, the rest of the ducing countries with interests op- tuity. world is paying more. posed to Saudi Arabia. Both Russia Fiscal stability is predicated on Providing Commercial & Multi-Family Landscaping Service Since 1995 There are many explanations for and Iran depend on oil revenue to the reliability of tax collections. Oil the improving dollar, but all that finance political unrest and wars. production is not reliable. Pretend- matters here is that no one in ISIS sells oil to generate revenue to ing that severance tax revenues will Columbus is able to affect global wage its war. Saudi Arabia reduces always be available is not just igno- currency markets. the ability of these actors to wage rant, it is irresponsible. In addition to a stronger dollar, their battles by limiting access to Ohioans deserve better. Landscape Maintenance Lawn Fertilization • Mowing • Trimming & Edging LETTER TO THE EDITOR Innovative Design • Landscape Construction • Mulching Tucker Landscaping Inc. • 986 Broadway Avenue • Bedford, Ohio • 44146 Foreclosure crisis is far from finished (440) 786-9840 • Tuckerlandscaping.net

I read with interest the “Foreclo- ing for some time. residential foreclosures will be filed sure activity is picking up” article in But what are the typical respons- this year, 50% off the highest yearly the Jan. 26 edition of Crain’s know- es to our concerns? “The govern- rate, but still 3.5 times the norm being that it was not talking about res- ment did this.” “Deadbeats need to fore the crisis hit. idential foreclosures. meet their obligations.” “They It’s not over. It’s time that we ALL The article talked about balloon shouldn’t have overstretched, living worked together to address the eco- payments, loans coming due be- outside their means.” nomic situation we are trying to im- fore the principal was paid off, dif- And so many other blame game prove — to keep people working, ficulty to access refinancing capi- aspects. healthy and housed. tal, lenders not wanting to The Great Recession has taken its renegotiate deals that were con- toll on residential, commercial and — Lou Tisler tractually agreed upon — all industrial stakeholders alike. Executive director of things that we, as housing-indus- From the residential perspective, Neighborhood Housing Services try professionals, have been say- it is estimated that more than 7,000 of Greater Cleveland

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TALK ON THE WEB (CONTINUED) DAILY E-NEWSLETTERS: Re: Disbanding the oiled machine. CrainsCleveland.com/register commercial docket — Zak Burkons TWITTER: @CrainsCleveland The process by which this hap- The commercial docket in Cuya- FACEBOOK: pened was also a mistake: no notice hoga County was an excellent Facebook.com/CrainsCleveland venue for the specific genre of cases to the public or the bar, no public it handled. Disbanding it is a mis- debate or discussion, and no ac- LINKEDIN: take. countability in the form of identify- linkedin.com/company/ The judges were all well-versed ing which judges voted which way. crain’s-cleveland-business in the issues, the decisions ren- That’s not the way it’s supposed INSTAGRAM: dered in a timely manner and pre- to work in a democracy. instagram.com/crainscleveland dictable. It was running as a well- — Anonymous Lawyer 20150202-NEWS--12-NAT-CCI-CL_-- 1/29/2015 1:57 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015 TAX LIENS

The Internal Revenue Service filed tax Amount: $34,826 Date filed: Dec. 2, 2014 ID: 45-1183828 Type: Employer’s withholding liens against the following Type: Employer’s withholding Date filed: Dec. 30, 2014 Amount: $17,098 businesses in the Cuyahoga County Ohio Express Inc. Amount: $26,832 Type: Employer’s withholding, Recorder’s Office. The IRS files a tax P.O. Box 44501, Cleveland failure to file complete return, MRSO Elite LLC Elite ID: 30-0638700 NRC Ohio LTD lien to protect the interests of the corporate income Answering Services Date filed: Dec. 3, 2014 100 N. Main St., Chagrin Falls federal government. The lien is a Amount: $19,858 20800 Center Ridge Road, Suite public notice to creditors that the Type: Employer’s withholding ID: 45-4209129 205, Rocky River government has a claim against a Amount: $34,294 Date filed: Dec. 30, 2014 Guarantee Product ID: 27-0472298 Type: Employer’s withholding, Specialties Inc. Date filed: Dec. 30, 2014 company’s property. Liens reported Ronald Frederick & Associates unemployment 21693 Drake Road, Strongsville Type: Partnership income here are $5,000 and higher. Dates 1370 Ontario St., Suite 1240, Amount: $26,507 ID: 45-0673710 Amount: $16,956 listed are the dates the documents Cleveland Date filed: Dec. 3, 2014 were filed in the Recorder’s Office. ID: 76-0811012 Cleveland Granite & Marble LLC Type: Employer’s withholding Medicare Transport Inc. Date filed: Dec. 30, 2014 42121 Carnegie Ave., Cleveland Amount: $19,704 6100 Oak Tree Blvd., Suite 200, Type: Employer’s withholding ID: 30-0340405 Independence LIENS FILED Amount: $33,488 Date filed: Dec. 3, 2014 11637 Clifton Inc. ID: 26-4552200 Type: Employer’s withholding Diner on Clifton Date filed: Dec. 3, 2014 Abramo LLC Petty Group LLC Amount: $26,059 1260 Smith Court, Rocky River Type: Employer’s annual federal 5131 Wiltshire Road, North Royalton 550 Harvard Ave., Newburgh Heights ID: 34-1893960 tax return ID: 45-4762361 ID: 20-1749244 Flexible Staffing Corp. Date filed: Dec. 3, 2014 Amount: $16,898 Date filed: Dec. 3, 2014 Date filed: Dec. 30, 2014 6521 Lorain Ave., Cleveland Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding, ID: 04-3712760 Amount: $19,389 Mindlin Consulting Group Inc. Amount: $47,726 unemployment Date filed: Dec. 2, 2014 14837 Detroit Ave., Lakewood 30676 Detroit LLC Amount: $28,849 Type: Employer’s withholding Room to Grow ID: 34-1941325 Amount: $25,898 30676 Detroit Road, Westlake Lakeside Building Services Inc. Learning Center Inc. Date filed: Dec. 8, 2014 ID: 46-2074946 2122 St. Clair Ave. NE, Cleveland Pinnacle Auto Transport LLC 87A Northfield Road, Bedford Type: Employer’s withholding, Date filed: Dec. 2, 2014 ID: 51-0585756 3681 Green Road, Suite 306, ID: 76-0807542 corporate income Type: Employer’s withholding Date filed: Dec. 30, 2014 Beachwood Date filed: Dec. 2, 2014 Amount: $15,302 Amount: $40,574 Type: Employer’s withholding ID: 20-3745304 Type: Employer’s withholding Amount: $18,711 Scoreboard Haircuts LLC Flexible Staffing Corp. Amount: $28,477 Date filed: Dec. 30, 2014 1855 Meadow Drive, Hinckley 6521 Lorain Ave., Cleveland Type: Employer’s withholding Tetzlaf Construction Co. ID: 27-2069697 C & D Truck & Equipment Amount: $21,536 ID: 04-3712760 Service Inc. 8156 Riverview Road, Brecksville Date filed: Dec. 8, 2014 Date filed: Dec. 2, 2014 4015 Jennings Road, Cleveland Real Time Intelligence Inc. ID: 34-1462253 Type: Employer’s withholding Type: Employer’s withholding, ID: 34-1187767 37305 Chagrin Blvd., Suite 20, Date filed: Dec. 30, 2014 Amount: $15,135 unemployment Type: Employer’s withholding Date filed: Dec. 30, 2014 Moreland Hills Five Star Partners LLC Amount: $36,573 Amount: $18,681 Type: Employer’s withholding ID: 20-0708861 3618 Shannon Road, Cleveland Date filed: Dec. 2, 2014 Bruce D. Taubman LPA Amount: $27,486 Blue Room Ltd. Heights Type: Employer’s withholding 55 Public Square, Suite 160, 4783 Wethersfield Court, ID: 45-4129185 Manorbrook Homes Inc. Amount: $21,485 Cleveland 481 Greenhaven Drive, Chagrin Falls Richmond Heights Date filed: Dec. 30, 2014 ID: 34-1316049 ID: 341-1515006 Great Northern ID: 27-3003670 Type: Employer’s withholding Date filed: Dec. 30, 2014 Date filed: Dec. 3, 2014 Management Inc. Date filed: Dec. 30, 2014 Amount: $14,874 Type: Employer’s withholding 6430 Eastland Road, Cleveland Type: Employer’s withholding, Type: Unemployment, Little Hands Daycare 1 Inc. Amount: $35,258 ID: 34-1317120 unemployment, partnership income corporate income 763 E. 152 St., Cleveland Amount: $26,878 Date filed: Dec. 3, 2014 Amount: $18,608 Flexible Staffing Corp. ID: 20-3576762 Type: Employer’s withholding Legend Truck & Equipment Inc. Date filed: Dec. 30, 2014 6521 Lorain Ave., Cleveland Quality Data Management Inc. Amount: $20,514 ID: 04-3712760 4015 E. Royalton Road, 711 W. Bagley Road, Berea Type: Employer’s withholding, Date filed: Dec. 30, 2014 Broadview Heights Lindsay Soul Cuisine Inc. ID: 34-1741156 unemployment Type: Employer’s withholding ID: 34-1839449 16906 Harvard Ave., Cleveland Date filed: Dec. 1, 2014 Amount: $13,788

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FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13

CRAIN’S BUSINESS DIVERSITY COUNCIL Last year, Crain’s Cleveland Business formed an 11-member minority advisory board GET DAILY NEWS ALERTS FROM CRAIN’S to provide objective, constructive input on minority-based issues for Crain’s. The Crain’s Business Diversity Council has met regularly since April. This is the last in a REGISTER FOR FREE E-MAIL ALERTS AND RECEIVE: series of profiles of its members. THE MORNING ROUNDUP: health care industry. Published business community and younger The day’s business news from Tuesday. SAMIR GAUTAM Ohio’s daily papers people to begin instilling in them the MANUFACTURING REPORT: Financial adviser, Caritas Financial importance of inclusion. BREAKING NEWS ALERTS A weekly guide to Northeast Ohio’s That could come in partnerships DAILY HEADLINES: manufacturing sector. Published with the surrounding colleges and Crain’s-produced news and every other Wednesday. In the late 1980s, shortly after universities, Gautam said, which in- blog items from the day Samir Gautam’s arrival in America, clude large populations of foreign SMALL BUSINESS REPORT: he was working at a shop at Mayfield students. REAL ESTATE REPORT: A weekly A weekly guide to small business and Coventry roads when a young “I’m a firm believer in taking tiny guide to real estate news. Published news. Published Thursday. black customer came in, looked at steps toward the ultimate goal,” Monday. SHALE AND ENERGY REPORT: him inquisitively and asked, “What Gautam said. “This is a work in HEALTH CARE REPORT: A A weekly guide to the energy are you?” progress. Once we bring everyone weekly guide of changes in the industry. Published Friday. Gautam found the question pecu- together and insert some of those liar, but obliged. “I’m Indian,” he smaller pieces, the bigger picture will replied. begin to form on its own.” SIGN UP NOW AT: CRAINSCLEVELAND.COM/REGISTER “What tribe?,” the man followed — Jeremy Nobile up. Being from India, and not a Native American, Gautam was caught off guard, surprised his customer wasn’t savvy to the differences that he otherwise assumed were common knowledge. He wondered: Is it common for Americans to be so culturally discon- nected? All people, regardless of color, creed or ethnicity, can be guilty of Give your employees living within their own circles, Gau- tam said, and many may be out of tune with the diverse makeup of their own communities as a result, the duck. hindering their capacity to relate to peers and understand the greater world. Gautam’s experience in the con- venience store happened 30 years Anything else is just ago. But, regardless of the many factors, a lack of cultural connectivity persists today. And as a society, he said, we still have room to grow, learn, empathize and foster inclu- chicken. sion and understanding among all people — something he aims to further through his role on the Crain’s Diversity Council. Almost 60 percent of employees “We need to bring people a more global perspective,” he said. wish their employers offered “When you look at the melting pot voluntary insurance1. Cleveland is, I don’t think there’s one ethnic group not present here. We need to mitigate this lack of un- The question is, who will you choose? derstanding by engaging the broader community in all these ethnic groups.” You could opt for a voluntary option from your Gautam, who grew up in New Del- medical carrier, or you could offer coverage from hi and finished his high school education in London, lives in Solon and the number one voluntary provider2: Afl ac. is a financial adviser at Caritas Fi- nancial. He is a trustee and chair of There’s no direct cost to you for offering it, and the development committee at The Presidents’ Council Foundation and getting started is as simple as adding a payroll participates with the Cleveland deduction. That’s why business owners like you Council on World Affairs and Kent have chosen Afl ac for nearly 60 years. It’s also State University’s office of diversity and inclusion. why we’re so confi dent Afl ac is the right partner He wants to improve the climate for your business. for businesses operated by women and minorities by turning the spot- light on them and the issues and You can bet the farm on it. challenges they face as entrepreneurs. Connecting everyone together and creating opportunities for mi- Call your local agent and visit norities to articulate their own afl ac.com/business experiences, struggles and successes could create a better business at- mosphere for everyone. “The goal is to show everyone that Cleveland is a very inclusive social and business community,” he said. “Our way of highlighting minority- owned business in the area is in the hopes to help them grow and, perhaps to a certain degree, attract minority business and encourage more to get into entrepreneurship in general.” 12013 Afl ac WorkForces Report, a study conducted by Research Now on behalf of Afl ac, January 7 – 24, 2013. 2Eastbridge Consulting Group. U.S. Worksite/Voluntary Sales Report. Carrier Results for 2012. Avon, CT: April 2013. Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Gautam said he hopes to help cre- Company of New York. Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999 ate new opportunities for education Z131175 11/13 and mentoring for small business owners and engage both the greater

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14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015 Rubber company rewards new leader for dedication

By MIKE McNULTY law explained firmly he needed Chaplin and Selip started to de- by the time they officially retire in Rubber & Plastics News steady, full-time employment be- velop a strong work relationship March. fore that could happen. when Chaplin moved from ship- Chaplin said initially the compa- When Donald Chaplin started “As fate would have it, my father- ping into manufacturing as a su- ny’s focus will be on building working at Grand River Rubber & in-law knew John Rettger, the plant pervisor. That’s when it became ap- Grand River’s bottom line via its Plastics Co. in 1992, he simply was manager of Ashtabula-based Grand parent “he was a bright, driven continuous improvement pro- looking for a way to support him- River,” Chaplin said. young man who was meant to do grams. self and his future wife, Tiffany. A “He (Rettger) ended up also much more with his life,” according “Having just bought out Ric and long-term career wasn’t in the pic- knowing my parents some 20 years to Selip. Joe and completed three acquisi- ture. prior to that. He thought I was tions in three years, our 2015 strate- He was 19, just out of high school worth a chance and hired me.” gic plan focuses on several internal and lacking in experience. He ini- Chaplin was brought on board to Major decision endeavors that will help us build tially landed a position in Grand work in the company’s cure room In 2001, Chaplin faced the the bottom line and be prepared for River’s cure room. in May and was married in Decem- biggest decision of his career. “I additional acquisitions or other op- Fast forward almost 22 years on ber 1992. Today, the couple has had a serious job opportunity with portunities for growth,” he said. a twisting career road, and Chaplin three children: Cooper, Shania and another company,” he said. “I had He noted the firm is actively pur- now sits in the top spot of the Isabella. a discussion with Ric Selip, and due suing accounts in two new market Ashtabula-based manufacturer of He said he went about his job as- to our relationship and how well I segments that fit with its core oper- flat belts, cut washers and tubular signments as he did everything, in- had been treated at Grand River, I ations. gaskets. He was named president of cluding sports throughout his committed to him to stay as long as Selip feels completely confident the company Jan. 1, replacing youth: totally focused on doing his he did, at that point having no idea MIKE McNULTY Chaplin “will be a great leader, and Richard D. Selip, who helped form best no matter which department what the future holds.” Donald Chaplin the future of the company is secure. the firm in 1976 with two partners he was assigned to or what position Selip recalls a couple of times It’s obviously very important to me. and has held the presidency since he held. when Chaplin had a chance to agement of the entire organization, I don’t care about my legacy. I care 1987. After two years, that strong work move on “and we talked about reporting directly to Selip and about the legacy of Grand River Co-owners Selip and Joseph A. ethic led to a promotion to the what was possible at GRRP.” Misinec. Rubber & Plastics.” Misinec, vice president of the firm, firm’s finishing department. He “It wasn’t so much keeping him Now, as president, he’s faced Chaplin will do well as president plan to retire in March. eventually ascended to the ship- from a better opportunity but more with the challenge of leading the because of his ability to view issues It doesn’t happen very often ping department, where he about the opportunity at hand,” employee-owned company into a from all sides, Selip said. when someone starts at the bottom demonstrated his true potential. Selip said. “If I feel an employee is new era. His biggest advantage, he Because his career at Grand Riv- of a company and climbs all the “There were several opportunities moving onto a position where he said, is that the firm has a solid er has covered virtually all the way to the top when he reaches his for improvement and growth in the will improve his lot in life, I will do foundation created by the efforts firm’s departments, including the early 40s, but Chaplin is proof it ac- position,” he said. everything in my power to help the and philosophy of the co-owners, manufacturing floor, he continued, tually can happen. Selip began to notice the intelli- person succeed. But if I’m not con- who, although they plan to retire the experience “has given him an gent, hard-working employee. vinced that life will be better else- from Grand River in March, will re- appreciation for what it takes to get where, I will fight to keep them.” main with the company on the the job done. Finding his way Chaplin eventually became the head shipper, Selip said. Later, Chaplin began expanding board of directors. “The other strength, and it takes Chaplin grew up on Cleveland’s “In that position, he interacted his knowledge of the business They had sold their shares to an most of us a long time to develop West Side. After completing high more with office personnel and world by enrolling in a program at employee stock ownership plan this skill, is the ability to listen. It is school, he moved to Conneaut, sales,” Selip said. Baldwin Wallace University in trust, which holds the firm’s shares amazing what people will tell you if near Ashtabula, in 1990. “That is a position that allowed Berea. He earned an Executive on behalf of Grand River’s employ- you just sit and listen.” “At the age of 19, I was just look- for some creativity and professional MBA, with a focus on executive ees, in January 2011. ing to find my way and support my- growth. It was also a place where a leadership, in May 2013. The transaction was completed (McNulty is a senior reporter with self and my wife-to-be,” he re- person can be noticed by being on His previous position with Grand without bank debt. Misinec and Rubber & Plastics News, a sister called. The couple wanted to get top of what is going on and meeting River was senior vice president, Selip hold the note, and four of the publication of Crain’s Cleveland married, but his future father-in- customer needs.” where he was charged with man- six payments will have been made Business.) BUSINESS Building our bank one quality relationship at a time

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FEBRUARY 2 - 8, 2015 CRAIN’S CLEVELAND BUSINESS 15 ENTREPRENEURIAL EXCELLENCE

WHAT’S IT TAKE TO BE AN ENTREPRENEUR? Above are some of the responses we received when we asked that question via social media. What qualities do business insiders think are essential? Find that and more inside. FOTOLIA 20150202-NEWS--16-NAT-CCI-CL_-- 1/29/2015 3:24 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015

REKA BARABAS MICHAEL OBI Director, WE ASKED CEO, Spectrum Global Solutions LLC Bad Girl Ventures Cleveland Anyone can literally start a business by logging into the NE OHIO Secretary of State website and paying the required $125. The journey of a new business very often starts with the en- However, the key question is what makes that entrepreneur trepreneur identifying a problem or a pain point. They say, “I successful? saw an opportunity,” or “I saw a need.” BUSINESS Here are five essential qualities: Call it being observant or being a good listener: Looking at ■ Own it: Successful entrepreneurs take the responsibility the world with a discerning eye and an open mind, while not of owning the idea, taking the risks and eventual rewards that enough by itself, can be a powerful part of the mix of qualities come with the business. When people see you taking owner- an entrepreneur needs to be successful. INSIDERS ship of the venture, they are more likely to become part of its As they start working on the solution, they have to listen to success. I call these people, “supporters” — bankers, in- their customers to figure out how to create a strong value vestors, customers, advisers, mentors, contractors and em- proposition and set the right price point. TO WEIGH ployees. However, feedback sessions and surveys often make cus- ■ Share it: Successful entrepreneurs are always willing to tomers too conscious and can deliver biased or skewed re- share in the fruits of the labor. They pay people to do things for sults. When interpreting that data, it helps to stay observant IN ... them. Entrepreneurs who always do everything by themselves and note how customers actually behave. instead of paying experts who can do them better risk burnout It is part of how some companies seem to know what cus- and lack of excellence in the final output. tomers want even before they do. People said they wanted ■ Pay for performance: When you create a mindset to en- faster horses, but Henry Ford knew they really needed a car. gage others in the advancement of your mission, you must have Being tuned into the world around us will help an entrepre- a culture of clarity in performance expectation. Reward those neur in the later stages of the business, as well. The con- who exceed performance goals and take corrective actions text of how we do business and how customers be- on those who do not. Salary is for doing your job. Bonus have is constantly changing. is for going the extra mile. Keeping your finger on the pulse of it will help ■ Decisive: Make it a point to practice making any entrepreneur not only anticipate changes decisions very quickly. The longer you take to but hopefully shape them, as well. say no or yes to an opportunity, the higher WHAT QUALITIES the opportunity cost of things that lie ahead. ■ Innovate: In today’s ever-changing environment, successful entrepreneurs ARE ESSENTIAL are always looking for more efficient and cost-effective ways to get things done. TO BEING A SUCCESSFUL

ETHAN COHEN KIP MARLOW Team leader ENTREPRENEUR Host, Entrepreneurs Bizdom Cleveland Club Radio on WINT 1130 AM The word “HEROIC” comes to mind Founder, Marlow when I think of the diverse range of skills re- AND WHY? Surgical Technologies; quired of successful entrepreneurs. Author, “The Entrepreneurs: Below are the six critical attributes that I asso- Success and Sacrifice” ciate with being HEROIC: After interviewing hundreds of entrepreneurs on a ■ H — Honest: Entrepreneurs face many difficult de- radio show and being a “recovering” entrepreneur, I’ve cisions. Others must trust they have the honesty and integri- discovered three essential qualities needed to succeed: Pas- ty to tell the truth and do what is right. sion; being a continuous learner; and recognizing your “mo- ■ E — Engaged: Others will only follow and invest in entre- ments of destiny.” preneurs who are engaged and passionate about their ideas. ■ Let’s take passion first. Steve Jobs was quoted as say- Entrepreneurs also need this attribute to overcome the set- ing that “being an entrepreneur is hard work, and if you don’t backs and challenges that they will inevitably face. HAVE A have a passion for what you do, you won’t make it.” Every suc- ■ R — Receptive: No one knows everything. To be success- cessful entrepreneur has a passion for what she does, and that ful, entrepreneurs must be receptive to feedback from others, may be the true secret to success. even if this feedback contradicts the entrepreneur’s own be- DIFFERENT ■ Being a continuous learner is vital. Successful people read liefs. all kinds of business books, have mentors, or even have a ■ O — Objective: Gut instincts will only get a business so group of advisers. One of my favorite quotes is by John Wood- far. Entrepreneurs need to proactively gather data and use it OPINION? en, the famous college basketball coach. “It’s what you learn to make objective and informed decisions. after you know it all that counts.” Successful entrepreneurs are ■ I — Improving: Continuous improvement and pivoting is always learning. an inevitable part of the startup process. Entrepreneurs should LET US ■ Grasp your “moments of destiny.” Many entrepreneurs always strive to do better. Additionally, they must be open to have gotten fired or laid off, and it sent a message that it’s time redesigning their business model if the facts indicate that their to start something on their own. original plan will fail. KNOW. I know one entrepreneur who learned she was laid off while ■ C — Communicator: Entrepreneurs have to effectively watching CNN, and according to her, “It was the door that communicate with multiple constituencies, including investors, @CRAINSCLEVELAND opened wide.” She didn’t turn lemons into lemonade, she employees and customers. turned them into gold. Another acquaintance was fired at the Of course, nobody excels at everything. Accordingly, entre- company picnic, co-founded a business and changed the preneurs should objectively assess their strengths and weak- FACEBOOK.COM/ world of medicine. nesses, and seek advisers and employees with complemen- CRAINSCLEVELAND There are many more qualities to being successful, but ad- tary skills. hering to these three could change a life forever. 20150202-NEWS--17-NAT-CCI-CL_-- 1/30/2015 1:44 PM Page 1

FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Regional startup momentum is providing broad path for diverse set of entrepreneurs

By JUDY STRINGER are millennials fresh out of college — or even Academic programs are stoking the fire as head, I can think of five to 10 women who [email protected] high school — aiming to be the next Mark well. A 2008 research report by the Kauffman own a business whom I can reach out to at Zuckerberg. Foundation found that the number of entre- any time,” Fasulko said. Entrepreneurs often are heralded as hero- Categories aside, there are just plain more preneurship programs at U.S. colleges and Meanwhile, mid-career professionals, or ic figures, risk-takers who put it all on the line of them, said Charles Stack, co-founder and universities surged from roughly 100 in 1975 recent retirees for that matter, bring to the to live out the dream of starting their own CEO of Flashstarts, a Cleveland-based busi- to more than 5,000 in just over 30 years. table not only insight into their given field business. ness startup accelerator and venture fund. There are an increasing number of pro- and its “pains,” but a wealth of contacts that To be sure, there is some degree of risk in “In the mid-1980s, entrepreneur get-to- grams at the high school level too, according can get them in their customers’ doors. any new venture. Yet, what makes an individ- gethers in Cleveland were pretty lonely to Barabas. She helps University School stu- “If you can easily get into a company and ual entrepreneurial has less to do with events,” he said. “That’s not true today. Two dents launch businesses through its Young have that conversation about how you can courage and more to do with creativity and years ago, Paul McAvinchey started holding a Entrepreneur Marketplace. Shaker Heights- help, that is a big win for any entrepreneur,” conviction, according to local company quarterly entrepreneur get-together called based LaunchHouse partners in a high- LaunchHouse CEO Todd Goldstein said. founders, funders and business insiders. TechPint. Every time he runs one, more peo- school accelerator program called LEAP. Corporate partnerships and quick sales are And, they said, there is no lack of either in ple show up. I went to his event last week at Chris Sklarin, president of the Ohio Venture especially important in a market like Cleve- Northeast Ohio. Beachland Ballroom and there were probably Association, cited programs at Hawken School land, said George Buzzy, where second and “All the ingredients are here,” said Mark 400 people there.” and Gilmore Academy, just to name a few. third venture rounds don’t flow as easily as Hauserman, director of John Carroll’s Mul- “If kids see examples of (entrepreneur- seed capital. Buzzy, former entrepreneur-in- doon Center for Entrepreneurship, “the edu- ship), they are more likely to think that is residence for JumpStart, recently joined Glass cational institutions, a great group of success- Youth movement something they can do,” Sklarin said. Slate Digital to help commercialize the Canal ful entrepreneurs who are willing to counsel If the TechPint crowd and the stream of as- Fulton firm’s holograph technology. and mentor, and organizations, incubators piring entrepreneurs who come through his Whatever their demographic background, and accelerators, which help support and de- door are good indicators, Stack sees the mil- ‘Catching up’ the influx of Northeast Ohio entrepreneurs velop entrepreneurs, all over the place.” lennial component as the fastest-growing Women and mid-career professionals are shows no sign of waning. Industry watchers Like his colleagues, Hauserman described segment of self-starters. Agility is their main two other fast-growing cohorts in the local said Third Frontier’s recent announcement entrepreneurs as people who pioneer creative advantage, since recent grads often lack the entrepreneurial scene. Female-centric pro- that it will devote the $350 million it has left ways of solving problems and marshal the re- weighty financial and time commitments grams like Bad Girl Ventures are partly to to entrepreneurial programs statewide, and sources to develop their solutions. He also common among more established profes- thank for the spread of women-owned busi- Cleveland-based JumpStart’s new $1.7 mil- echoed the sentiment that Northeast Ohio sionals. nesses. Equally important is the support from lion small business loan program will help entrepreneurs are difficult to pigeonhole. “We see a lot more young people because fellow trailblazers, said Shelley Fasulko, own- sustain the current momentum. Some are “momprenuers” seeking to blend they are more willing to take the risk. They er of Tremont culinary startup Brewnuts. At this point, Stack said, Northeast Ohio flexibility with professional growth, or recent don’t have much to lose, no family, no “It’s funny because sometimes women get may still lag behind other regions when it retirees wanting to reinvent themselves. house,” said Reka Barabas, director of Bad a bad rap for being exclusionary. In my expe- comes to starting new companies and raising Many are mid-career professionals looking to Girl Ventures Cleveland, an incubator devot- rience in small business, we are so hugely capital, but its trajectory is much steeper. launch something of their own. Still others ed to women-owned businesses. supportive of each other. Off the top of my “We are catching up,” he said.

MEET SOME OF NE OHIO’S ENTREPRENEURS ...

RICHARD RODMAN SCOTT HUFF CEO, co-founder, Crowdentials Founder, partner; Your e folio Rich Rodman admits that many of his Good things can come from ments and accounts. business contacts may not realize he is bad events, Scott Huff said of his Bhargava said the software only 23. But for his part, Rodman views nascent Your e folio company. also is enhanced with macros youth as an asset. It was while helping his mother and tools that can tell advisers “Starting a company is something you locate and sort through financial when a client’s homeowners in- really have to have the tenacity for, and statements, insurance docu- surance is inadequate, for exam- being young, I think, is more of an ad- ments, a will and other far-flung ple. Since the partners have vantage than a disadvantage,” he said. paper and electronic records fol- been practicing advisers for Crowdentials is not Rodman’s first for- lowing his father’s death that Huff years, finding people to help ay into entrepreneurship. As a student decided there must be a better them design and test the product at Ohio University, the Cleveland native way. has been a cinch. The same will co-founded FlashCrop, a mobile app that “It’s a rough time for anybody be true when they begin selling it. creates flashcards from pictures. without having to face the “We know all the players,” Huff “We won every competition that the prospect of locating life insurance said. “Our feet are already in the school had to offer, participated in an ac- policies and other critical docu- door.” celerator program and brought on a cou- ments,” he said. ple of employees there,” Rodman said. raised $475,000 in seed funding in its With business partner Sanjay Just before graduation, he returned to first 18 months. The biggest challenge, Bhargava — Bhargava is CEO of Cleveland and started Crowdentials with Rodman said, is time management. Independence-based JK Invest- co-founders Max Heckel and Rohan “At any point, there are a million ment Group, where Huff is a fi- Kusre. The company offers software to things I have to do from selling to cus- nancial adviser — Huff developed help crowdfunding platforms automate tomers, bringing investors on board, Your e folio, software that helps compliance requirements for their cus- servicing existing products and building financial planners create a com- tomers. The fledgling company has more new products, because customers al- prehensive inventory of all of than 30 distributors nationwide and has ways want more.” their client’s important docu-

NATALIE BAUMAN Q +0+@6<256> Founder, CEO; The Digital Mosaic Nesco Resource engineers After many years in professional video clips using smart phones. It is being used in assisted in the construction of the production, Natalie Bauman knows how assisted living facilities, including Montefiore much equipment and technical expertise it in Beachwood. She hopes to have the app nation’s largest solar powerer plantplant?? takes to produce a video. She also knows cleared by digital storefronts this summer. how important it is to capture the stories of Bauman, a Bad Girl Ventures finalist in cherished loved ones, especially grandpar- 2014, took home $5,000 in COSE’s busi- Nesco Resource is the answer for matching exciting talent ents, parents, aunts and uncles, while they ness pitch competition. She sees the app are still around to share them. being used in businesses and churches as with great opportunities. That’s why we’re the largest “I wanted to empower families to tell well as for family mini-documentary pro- national stafﬁng ﬁrm headquartered in Northeast Ohio. their own stories using the technology jects. For now, she is pleased it has found a A To learn more, visit nescoresource.com today. they carry around in their own pocket,” home in nursing facilities, to record mo- Bauman said. ments family members might otherwise Digital Mosaic’s storytelling app is de- miss. signed to help families and communities “It is the coolest thing to know you have create, curate and share digital narratives created something driven by a need,” she by allowing people to record short video said. (5LZJV0UJ*VTWHU` 20150202-NEWS--18-NAT-CCI-CL_-- 1/30/2015 12:47 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015 LARGEST ENGINEERING FIRMS

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FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 SPORTS continued from page 5 the Greater Cleveland Sports the organization can sustain its suc- “They’re without question one of holds Gilbert and his colleagues notoriety that we have across the Awards — the sports commission’s cess because its growth has given it the top sports commissions in the “accountable for their performance country — we are asked to bid on largest annual fundraiser. the ability to handle everything that country,” Bender said of the GCSC. every month,” DiSanto said. certain things. I don’t think there’s In its 2012 federal tax return, goes into hosting a marquee event, “They’re really aggressive about The former board chairman said a limit to what we can do.” nearly $1.7 million of the sports from logistics to marketing, spon- bringing stuff to the area.” his only concern with Gilbert is he The sports commission has ac- commission’s $4.4 million in rev- sorships and community program- Cleveland has one of the nation’s is in such high demand that he wor- complished quite a bit since its enues came from gifts and grants, a ming. largest sports commissions in terms ries the sports commission and humble beginnings. total that was $656,000 more than it The beefed-up organization has of size, events managed and esti- Destination Cleveland CEO will one The GCSC says the 160-plus received in government grants. formed committees that are able to mated economic impact, a fact the day receive an offer that’s too good events it has attracted in the last 15 Fees from board members only concentrate on specific focuses, board of trustees attributes to the to turn down. years have resulted in more than account for a small portion of that, such as attracting new events and work of Gilbert and his staff, and “He could have gone anywhere $450 million in economic activity. but DiSanto and Grassi said there running the massive, and sports the support it’s received from com- he wanted to go,” DiSanto said of The NCAA Women’s Final Four was are other notable gains that result commission-owned, Continental munity and government leaders. Gilbert. held in Cleveland in 2007, and the from having so many trustees giving Cup. “If you take a look at the strength “People have asked him, believe National Senior Games provided an their two cents. “Our business model from Day 1, of our board and the leadership we me, because of his reputation. And estimated $36.1 million boost in “The biggest areas they con- and it’s gotten easier as we’ve got- have in the organization, it has there’s only so many hours in a day 2013. tribute are if we need reach or con- ten bigger, was to try to offer more grown into an organization that I that David has. So a big push that This March, the NCAA men’s bas- tacts, there will be somebody on services than these events are get- believe has sustainability,” DiSanto we — I think we’re very tough on ketball Sweet 16 and Elite Eight will that board who has a relationship ting from other communities in any said. him — had was to get a good, qual- be held in Cleveland for the first (with that person),” Grassi said. other city,” Gilbert said. “Ten years ago, I don’t know how ity staff to alleviate some of the stuff time, the Transplant Games and “They all care about Northeast USA Wrestling executive director sustainable it was. But today, it’s on his plate.” NCAA Division I wrestling champi- Ohio. They really want to create an Rich Bender, whose organization clearly sustainable.” The board believes that’s been economic impact. Tying it with onships are on tap in 2016 and 2018, has worked with the sports com- Gilbert said he’s grateful that the accomplished, and Gilbert said respectively, and the sports com- sports I think is the fun part of it, but mission on numerous events, in- board has allowed him to run both there shouldn’t be any concern mission and the Cavs are awaiting when we sit down as a board, it’s all cluding the Cadet & University Na- the sports commission and Desti- about him going elsewhere. word on their bid to host the 2018 about economic impact for North- tional Championships that are held nation Cleveland, and he said he “There have been times I’ve been NBA All-Star game. east Ohio.” annually in Akron, said the GCSC’s delegates much more than he used approached about other positions,” And as the sports commission Grassi said BVU: The Center for claims aren’t just marketing chat- to, thanks to what he calls a “phe- said Gilbert, who lives in Solon with has grown, its board of trustees has Nonprofit Excellence did an assess- ter. nomenal” staff. his wife, Faith, and two children. multiplied like its events calendar. ment of the sports commission’s USA Wrestling hosts “just north The board — which meets as a “I’m fortunate that I love what I DiSanto said “a number of orga- board a few years ago. The Cleve- of 2,000 events a year,” Bender said, whole three times per year and has do. This is my home. I think if I did nizations” pay $5,000 to have one of land organization’s analysis, ac- their executives sit on the board, cording to the GCSC’s new chair- and it’s worked with dozens of an executive committee of about 16 this job in another city, it would be and Grassi added that “sometimes” man: “You have a very large board sports commissions over the years. that gathers every other month — a job and not a passion.” the fee is “much higher.” DiSanto for a not-for-profit,” but “it works.” said Ancora Advisors, a Cleveland investment firm for which he serves Where it’s going as chairman and CEO, pays $5,000 for his board position, then con- Gilbert and the sports commis- tributes about $7,500 for a table at sion’s leadership committee believe

Sports commission: By the numbers ■ 2 — Employees the Greater SIGNATURE EVENTS Cleveland Sports Commission had 2007 NCAA Division I Women’s when it relaunched in 2000 — David Final Four, which had an estimated Gilbert and Rob Maron. economic impact of $22 million ■ 21 — Employees it has now, 2013 National Senior Games, counting its stable of interns. There which had an estimated economic are 13 full-time workers, two impact of $36.1 million part-time contractors and six regular The Continental Cup, an annual interns. event that is owned by the sports ■ 160 — Events the sports commission. commission has attracted to ON THE CALENDAR Northeast Ohio in the last 15 years. Now in its 24th year, Crain’s Forty 2015 NCAA Division I men’s ■ $450 million — The estimated basketball Sweet 16 and Elite Eight economic impact of those events, according to studies done for the 2016 Transplant Games Under 40 program has honored over sports commission. 2018 D-I wrestling championships 900 individuals for their professional success and civic contributions.

engineering + architecture + management Who will be honored in 2015?

You have a say. To nominate, visit: CrainsCleveland.com/40under40

DEADLINE: JUNE 1 www.middough.com 20150202-NEWS--20-NAT-CCI-CL_-- 1/30/2015 3:48 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015 COURT continued from page 1 to control everything,” Sutula said. they appreciate the predictability citing limited experience with com- “It’s a solution looking for a prob- offered by a small group of dedicat- mercial litigation and case manage- lem.” ed judges and fast case turnover. ment, The Plain Dealer reported. Sutula said he takes exception to “The commercial docket was the Russo — who is staying mum on the idea that commercial lawyers best reform move, the best thing how he sided and the majority vote believe they “deserve some sort of we’ve done in our county in the 40 tally — asserts all judges are quali- priority over anybody else’s cases” years I’ve been practicing in this fied to hear any cases in their juris- and exclusive judges via the docket. county,” said David Mayo, a part- diction, and Collier-Williams, like “That’s probably the most galling ner at Benesch and an outspoken all other judges, could still hear thing,” he said. advocate of the court. “This is a very commercial cases now that the As far as offering an expedited disappointing announcement and NEOSA docket is eliminated. route for business cases, Sutula a huge setback for litigants and The judge, who stressed that pol- suggests there’s no significant ben- lawyers who have business disputes continued from page 5 If OHTech’s expansion plans itics were not at play in the deci- efit. Sutula said he personally man- in Cuyahoga County.” project OHTech is doing with help work, they could help the group re- sion, said he is declining to discuss ages his cases at a pace comparable Bruce Hearey, president of the from the Technology Councils of verse an ongoing decline in its other details until minutes are ap- to that achieved by judges in the Cleveland Metropolitan Bar Associ- North America. membership. Roughly 700 tech proved in February at the Common commercial docket. ation, said he’s not aware of any “It’s such a huge need,” Nellis companies belong to the organiza- Pleas Court’s next regular meeting. According to caseload data from lawyer who didn’t like the docket. said. “Everybody’s hiring.” tion today. Two years ago, the group Discussions about how and if the between March 2009 and August The bar association and Greater OHTech wants to expand in oth- had roughly 800 members — and it docket might be restored also are 2014, 3,325 cases had been filed in Cleveland Partnership have both er ways, too. The group plans to had about 930 five years ago. ongoing with the Cleveland Metro- the commercial court, and 2,966 urged the court to reconsider the start holding regular networking The recession drove away some politan Bar Association, which has (89%) had been resolved or dis- decision. events in Akron in conjunction with members and put others out of vocalized its dismay with the deci- posed of. That equals about 50 cas- “It sure seemed to us this was a networking events going on at the business, Nellis said. But he noted sion on behalf of Cleveland-area lit- es filed and nearly 45 cases dis- definite step in the right direction,” same time in Cleveland. If there’s a that membership started going igators. posed of on average per month. said Joe Roman, president and CEO speaker or a panel discussion at one down after the federal government “My hope is after the February Sutula also suggests that lawyers of the Greater Cleveland Partner- event, it will be broadcast live at the passed the Patient Protection and meeting we have an opportunity to prefer the dedicated docket be- ship. “We want to talk about it, and other event. Affordable Care Act, also known as sit with judges, litigants and the bar cause it’s “easier to mold four we want to know what the reason- Will people show up for a net- Obamacare. to talk, which I think is important,” judges to your way of thinking than ing was and if we can correct the working event where they watch Why does that matter to he said. “It’s been voted down, and someone you haven’t seen in a change.” speakers on a screen? Nellis isn’t OHTech? my job is to (ask), ‘What’s best for while.” Roman said he heard law firms sure, but he thinks there’s potential. Businesses that join can buy Cuyahoga County, the court and Having a bench with 34 judges would plug the court to companies “It’s going to take a while to get it health insurance through COSE. the people we serve?’” creates a more “level playing field,” they worked with, encouraging off the ground, because it’s some- That insurance had been the orga- he said. them to file cases specifically in thing new,” he said. nization’s most popular benefit for Sutula added that he also dis- Cuyahoga County to take advan- The group also will work with years, because it allowed small busi- How it happened agrees with the notion that some tage of the commercial docket. other tech associations — such as nesses to buy insurance through a Following the disqualification of judges are better qualified to hear While hard to track, it’s believed the The Circuit in Cincinnati and Tech- larger group. Collier-Williams, the Cuyahoga commercial cases than another. docket was one of many factors nology First in Dayton — to run But the health reform law gave County court intended during a “You’re elected to become judge considered by and promoted to en- joint events. Plus, they’ll share con- individuals and small businesses Jan. 21 meeting to move a discus- on common pleas court, you’re tities considering doing business tent such as blogs and podcasts on more ways to buy health insurance, sion about the commercial docket qualified to handle these cases,” he here. topics that tech companies care which reduced demand for COSE’s to committee. said. “Anything that can reduce regu- about. insurance program. Common Pleas Court Judge John lations, that can speed up permit- Sutula, who said he’s “always” been ting, make lawsuits and the time against the commercial docket, ‘The best reform … in 40 years’ surrounding them more efficient then requested a vote to disband it. Meanwhile, Cleveland lawyers and effective, all those things re- “(Lawyers) want the right to are uniformly upset with the deci- duce the costs of doing business,” choose judges; they want the right sion and maintain hope the docket Roman said. “For a community LAKE HEALTH to a limited number of judges and will be reinstated. Litigators say who can do this, it’s an advantage.” continued from page 7 initiatives. “They want more value.” “Regardless of how well intended the A distinguishing factor of this care insurance companies are, they often management product is that its out- have national interests in mind. comes will be publicly reported and They’re not directly influencing your analyzed by a third party, perhaps demographics and your people’s even yearly. The collective tapped problems.” Better Health Greater Cleveland, The Lake Health project is being which describes itself as a health Chandler Converse facilitated by the Health Action care improvement collaborative, to & Scott Halloran Council, a Cleveland-based non- analyze the outcomes data, particu- profit that’s made up of large, self- larly in the areas of diabetes, blood are proud to have represented insured employers. The council’s pressure and heart failure. The idea representatives said it’s possible that is that the best practices that emerge other employers could join in on the from the pilot will be shared with pilot, and many are waiting to see other employers and health care whether the effort actually improves providers throughout the region. health and lowers costs. “Lake Health will lose business if “Our employers have always been they don’t do it right, and employers in the renewal of keenly interested in better out- care about getting their employees 86,956 sq. ft. comes, better health and better pa- the best care possible,” Better Health tient satisfaction,” said Lisa Kaiser, president Dr. Randall Cebul said. DW6N\OLJKW2IÀFH7RZHU who oversees the council’s quality “It’s a good experience.” Cleveland, OH PLAN continued from page 7 tax at every stage of production. country,” Drenkard said. “Gross re- Marty McGann, GCP’s senior vice ceipts tax like the CAT tax are 18th president for advocacy, believes century taxes. In Spain, it con- that Kasich isn’t a fan of the CAT, tributed to the collapse of the Span- which his group supports. He added ish Empire.” that the organization wants to sup- Drenkard and the Tax Founda- port a cut in the state income tax as tion call the CAT a pyramiding tax. long as the lost revenue isn’t recov- CBRE, Inc. It’s like a sales tax, but instead of ap- ered by raising other taxes on busi- 950 Main Avenue plying only to the final sale to con- ness, particularly the CAT. Suite 200 sumers, it taxes intermediate busi- “Our members support a per- Cleveland, OH 44113 ness-to-business purchases of raw sonal income tax reduction, but at materials and equipment, adding a what cost?,” McGann asked. 7 ZZZFEUHFRPFOHYHODQG YOU CAN WATCH US, TOO Look for Crain’s Weekly Report webcast, which will hit your inbox Friday afternoon. To sign up, go to: crainscleveland.com/register. 20150202-NEWS--21-NAT-CCI-CL_-- 1/30/2015 1:44 PM Page 1

FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 HOPKINS But what about getting to continued from page 1 Transportation, have been among have been affected, those within in said new, more fuel-efficient air- the highest in the nation, in large a four- or five-hour drive time.” the convention in 2016? craft are making secondary U.S. part because of United’s ability to Before the Republicans can start passengers use to reach the termi- airports more attractive to some control the market. convening (and partying) in down- nal. Smith said the city needs to fig- Repositioning for growth European airlines. In 2013, the airline accounted town Cleveland in summer 2016, ure out what it will take to attract an “European carriers, such as Ice- for 73% of all flights in and out of To make the airport more attrac- most of the 40,000 convention dele- operator. He said the city could fol- landAir and Norwegian Airlines, Cleveland Hopkins, according to tive to travelers, Smith and his staff gates, guests and media will have to low the lead of Cuyahoga County, are looking at places other than data tracked by Airports Council have begun to look at ways to pass through Cleveland Hopkins In- which owns the under-construction New York and Chicago to be flying International/North America, an spruce up the terminal and recon- ternational Airport. hotel adjacent to the Cleveland Con- to,” he said, adding that Smith airport industry trade group. Smith figure the concourses, where the So the city of Cleveland, which vention Center and the Global Cen- “could be talking to one of those.” said he estimates that share has airlines process passengers onto owns the facility, already is thinking ter for Health Innovation. To move that effort along, Smith dropped to closer to 50% and aircraft. about how to be ready for the as- The airport also still needs to fig- said the airport will use incentives. should drop further in the future. Last spring, the airport an- sault. And Ricky Smith, the director ure out how to handle convention He said if an airline commits to of- But Smith noted that while pas- nounced a $20 million plan to of Cleveland Hopkins and Burke traffic on the ground. The airlines fer air service to a market that senger traffic may have dropped make over the terminal’s exterior, Lakefront Airport, said he intends to are likely to add flights to accommo- Clevelanders now can’t reach on a 17% overall, the airport’s O&D ser- ticketing lobby and baggage claim make the facility a showcase that he date the surge into Cleveland, Smith non-stop flight for a negotiated pe- vice, the service to passengers area. Beyond that, though, Smith hopes will attract more air service said, and he and convention organiz- riod of time, the airport might whose travel originates or ends in told Crain’s that he has begun a to the airport. ers will have to work out logistics for Actually the airport’s planners be- the ground transportation that will waive landing fees for those flights Cleveland, is off by only 8%. He terminal utilization study that gan mapping out a refurbishing be- be needed to handle that surge. for a year. added, though, that United’s cuts could end up moving gates of the fore the Republicans decided to “The airlines are better at this Landing fees are assessed on the in service cost the airport $20 mil- various airlines and even closing bring their 2016 presidential nomi- than we are, because they do it for weight of a landing (or taking off) lion in income last year. The air- an existing concourse. nating convention to the city on July the conventions, the Super Bowl, aircraft. They are based on an airport was expected to have total The airport has four concourses 18, 2016, for a four-day stay. But the NBA All-Star game,” Smith said. port’s cost to build and maintain revenue of nearly $140 million in — A, B, C and D — and the airlines the completion of a $20 million redo “We have to work with the orga- its runways and other pavement. 2014, according to Mayor Frank rent gates on the concourses. Unit- of the terminal exterior, the ticketing nizers on issues of transportation so Because of the amount of debt ed uses most of Concourse C and it Jackson’s budget. lobby and the baggage claim area we’ll probably have to come up with being carried and the relatively low Hopkins average fare was the used all of Concourse D, which has has been moved up, Smith said. some arrangement that will be number of takeoffs and landings at ninth-highest of the 100 largest air- closed because of the reduction in Burke also is getting a little bit of an unique to them to keep them out of Hopkins, its landing fees are high- ports tracked by the federal trans- United’s flight schedule, though upgrade. the way of normal passengers.” er than many other airports in the portation department at $465.09. United continues to have a finan- “They (the conventiongoers) will At Burke, Landmark Aviation is region. That compares with a 100-airport cial responsibility for much of that be one of the first groups to see a about to start construction of a Attracting new airlines, Wilson average of $395.62. space. newly renovated terminal,” Smith hangar and terminal to serve its pri- said, should be easier for Hopkins But how satisfied are business Smith said he will be talking to said. “The (coming of the Republi- vate and business aviation cus- now that United is less dominant travelers? The end of the hub dis- United about reconfiguring its op- cans will) be an opportunity to show- tomers. Landmark is spending at and less interested in competing appointed many business travel- erations and, perhaps, relinquish- case the airport — it will be the least $6 million on the facility, which on many routes. ers, said Rob Turk, senior vice ing some gates. He also left open cleanest facility you could find. is expected to be ready by the first “It’s terrible that Cleveland got president of Professional Travel the possibility that Concourse D There won’t be a person in this air- quarter of 2016. dehubbed, but it’s a good opportu- Inc., a North Olmsted travel could be reopened and another port who touches a passenger who Houston-based Landmark runs nity for (Cleveland) to get new ser- agency that assists the business concourse closed. doesn’t have an understanding of what’s called a fixed-base operation, vice or expanded service,” Wilson travelers of more than 300 compa- “There will be some reshuf- good customer service. The sig- or FBO, at the downtown airport. It said. nies. fling,” he said. “I can’t tell you that nage will be welcoming.” provides fuel, hangar space, aircraft It’s likely, though, that the “It required a lot of adjustment,” Concourse D will remain closed” Not ready for the conventioneers, maintenance and related services to growth will come from low-cost he said. “I think you still have some or if another concourse will be though, will be a new hotel. private aircraft, which some conven- carriers, not the more established customers who are legacy-carrier closed and D reopened. The airport’s long-term master tion delegates are likely to use since airlines, called legacy carriers, that supportive because of the fre- That will depend on what space plan envisions a hotel that would be it is so close to the convention cater to business travelers. United, quent-flier programs and the oth- the new airlines want and what built just east of the roadway that action. — Jay Miller and the other remaining legacy er privileges they get. space United might be willing to carriers, American and Delta air- “A lot of business travelers are give up. It may also depend on lines, used business- and first- still reluctant to travel on the low- making access to Concourse D class seating, frequent-flier pro- cost carriers because it is a differ- easier. It now can be reached only grams and airport lounges to lure ent experience.” by an underground tunnel that Nowacki Asset Management LLC road warriors. Those low-cost carriers usually splits off Concourse C. lack roomier business or first-class “In some cases, airlines are look- All’s fare … seats, may not have assigned seats ing at United, which has the best and skimp on food service. space in the building and they see Because of its dominance, Unit- But that doesn’t appear to have this as an opportunity to get some ed could keep fares high. So the deterred business travel. of that preferred space,” Smith compensation may come in lower “We’ve seen a solid trend of said. fares. spend increases over the last cou- “We have an opportunity to po- Fares at Cleveland Hopkins, ac- ple of years,” Turk said. sition our carriers that are growing cording to the U.S. Department of “Some of the short-haul markets in a way that allows them to grow.”

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22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 2 - 8, 2015 Former Onosys execs back in biz Two of its founders launched Scout RFP, a software firm that just raised $2.75M By CHUCK SODER A few local investors got in on [email protected] the deal, too. One of them is Zapis Capital, Two of the guys who sold Onosys which invested in Onosys in 2008, to LivingSocial are running anoth- back when it was called O-Web er software company that just Technologies. raised a few million dollars. Garber, Yakubovich and Oleg It’s unclear whether Scout RFP Fridman — who now runs a local will grow in Northeast Ohio: The custom software development company’s small staff is scattered company called Prototype1 — across the United States, and its started the company as a web de- leaders, Stan Garber and Alex velopment firm in 2003, while they Yakubovic, are spending a lot of were students at Case Western Re- time in San Francisco these days. serve University. But it will grow somewhere. The Scout RFP’s roots go back to company, which aims to improve Case Western as well. That’s where the way businesses buy goods and Garber and Yakubovich met An- services, just raised $2.75 million in drew Durlak and Chris Crane, two venture capital. of the company’s three founding The company has one developer partners. in Northeast Ohio, but Garber just First, Garber and Yakubovich in- moved to San Francisco and vested in their friends’ company. Yakubovic said he’s spending Then, in September, Garber be- much of his time there as well. came president and Yakubovich They’ve leased a two-bedroom became CEO. condo in the city for seven months. They learned to hate the re- But they still have deep ties to quest-for-proposal process at Northeast Ohio, said Yakubovic, Onosys. It’s extremely labor inten- CEO of Scout RFP. sive and involves sending a lot of “We’re not selling our homes emails back and forth and compil- anytime soon,” he said. ing data manually, often in Excel The biggest investment came spreadsheets, Yakubovich said. from New Enterprise Associates, Scout RFP aims to streamline that which has an office in Silicon Val- process and give buyers a way to ley. Google Ventures chipped in, compare all proposals side-by- too, as did Tim O’Shaughnessy, the side. former CEO of LivingSocial. He has More than 600 people use the a strong tie to Garber and company’s software today. Many Yakubovic: Three years ago, Living- of them work for large companies, Social — a Washington, D.C.-based which buy lots of stuff through for- company that offers daily deals via mal RFP processes, Yakubovich the Internet to roughly 62 million said. subscribers — bought their previ- The restaurants that bought soft- ous company, Onosys, which pro- ware from Onosys often fell into vides online food ordering systems that category. to restaurants. “We could’ve been best friends Investors encouraged the Scout and having dinner with the CEO RFP team to rent a place in the Sil- the night before, but we’d still have icon Valley area, but they didn’t re- to go through the RFP process,” he quire it, Yakubovic said. said.

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FEBRUARY 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS A towering real estate center at the heart of For- At the start of the year, the state also in- JANUARY 26 - FEBRUARY 1 est City’s Public Square creased its minimum wage by 15 cents to move might be in the offing office complex remains $8.10. The national minimum wage is $7.25. on the market. David “Tower City Shops LLC” is the head-turn- — Timothy Magaw The big story: Continental AG of Germany Browning, executive ing name of a foreign corporation registered closed its acquisition of Fairlawn-based rubber managing director of Jan. 9 with the Ohio Secretary of State’s of- Engineering Society looks company Veyance Technologies Inc. The trans- CBRE Group Inc., said his fice. action is valued at about $1.6 billion. Veyance firm has gotten multiple to build something positive The moniker immediately brings to mind will be integrated into the company’s ContiTech calls from investors and Gilbert The Avenue at Tower City Center, the down- The Cleveland Engineering Society wants division. Veyance, a spinoff of Goodyear Tire & real estate developers do- town shopping center that Cleveland-based to teach engineers to create more efficient Rubber Co., had sales of about $2 billion in 2013 ing homework on the property. Browning Forest City Enterprises Inc. came close to construction plans, starting with a focus on and employed approximately 9,000 at its 27 would identify none of those parties. selling last summer. plumbing. The society is working with the plants. Veyance’s office in Fairlawn, which em- — Stan Bullard Adding to the intrigue: The filing was by ploys about 200, will serve as the regional home Cleveland Plumbing Industry to offer a set lawyer Howard N. Luckoff of Detroit, whose office for ContiTech in North America. It’s too of nine classes between Feb. 18 and July 28 name also appears on legal documents as- early to say whether employment at the Fairlawn The Clinic’s bottom line: on topics like storm water drainage systems, sociated with property deals that Cleveland office will be affected, said vice president of glob- hospital plumbing systems and systems for Cavaliers owner Dan Gilbert’s Rock Gaming $12 per hour for workers al human resources Bruce Kendrick. natural and medical gas. has executed for Horseshoe Cleveland Casi- Cleveland Clinic CEO Dr. Toby Cosgrove The sessions will give engineers and oth- no. Lip service: Bonne Bell Co. sold some of its promised not to pay any of the health sys- ers in construction the plumbers’ perspec- brands, including the iconic Lip Smacker lip Principals on both sides of a potential tem’s employees less than $12 an hour. tive, said Susan Davis, executive director of gloss, and plans to lay off more than 90 workers Tower City retail deal say they don’t com- Cosgrove announced the changes in his the Cleveland Engineering Society. And they in Westlake. The company plans to close manu- ment on rumors or speculation. Robin year-end letter to the Clinic’s staff. He not- might give people advanced design ideas or facturing and distribution operations at its loca- Schwartz, spokeswoman for Bedrock Real ed that more details would be provided this ideas for how to do a project more cost ef- tion at 1006 Crocker Road in Westlake, resulting Estate Services, the firm that manages year. He also said the Clinic would increase fectively before they get on site. in the permanent layoffs of 91 employees. Bonne Gilbert’s vast holdings helping rejuvenate the amount it sets aside for its Employee This is the first program of this kind the Bell reached an agreement to sell the Lip Smack- his home town, referred Crain’s to Luckoff. Hardship Fund, which provides assistance society is hosting, but Davis said she sees er lip gloss and Bonne Bell cosmetic brands to Luckoff was identified in an August 2011 to Clinic caregivers facing “extraordinary fi- opportunities for classes in other areas like Markwins International Corp. Bonne Bell will story in Crain’s Detroit Business as part of nancial challenges.” bricklaying, electrical or carpentry. All of the change its name to the Bell Family Brands. The Gilbert’s “infrastructure” of friends and “We will continue to invest in our care- classes will be designed to make the con- company still owns the Formula 10.0.6 skin care business associates remaking downtown givers,” Cosgrove said in the letter. “Cleve- struction site “more efficient and cost effec- brand. Its distribution affiliate, Aspire Brands, Detroit. In a phone interview on Thursday, land Clinic has always paid a competitive tive,” she said. will continue to distribute Lip Smackers in Eu- Jan. 29, Luckoff said that as an attorney, he wage, including annual merit increases The classes will be held at the Cleveland rope, Australia and Asia. does not discuss work he does for any of his through our yearly performance manage- Plumbing Industry’s training center at 950 clients. ment process.” Keynote Circle in Brooklyn Heights. Partici- On the up and up: The There is also the chance — slim though The Clinic boasts 34,658 full-time equiv- pants don’t have to sign up for all of the of- Cleveland Browns are raising that might be — that Tower City Shops alent local employees as of last summer, ac- fered classes. More information is available ticket prices for the first time might be used for some other property in cording to data compiled by Crain’s Cleve- on the Cleveland Engineering Society’s web- since 2008. Team president Ohio. land Business. That figure makes it the site, www.cesnet.org. Alec Scheiner said that, after One thing is clear: The massive shopping region’s largest employer. — Rachel Abbey McCafferty six consecutive years of keeping prices flat, they had gotten “out of whack” with the Scheiner rest of the NFL. Season-ticket memberships for non-club MILESTONE BEST OF THE BLOGS seats will cost between $25 and $110 per game in Excerpts from recent blog entries ness owners. 2015, the Browns said. In 2014, the range was $19 on CrainsCleveland.com. “For one project, Olivia Marino, an 18- to $85. The Browns, according to Team Market- year-old senior, conducted market research ing Report, had the league’s cheapest average You are what you eat for an Indian restaurant looking to define its seat at $54.20 in 2014. In 2015, some non-club target market and growth strategy,” accord- seats will increase as much as $25 — from $85 to Still keeping up with that New Year’s res- ing to the story. olution to lose weight? Good work. But if $110 — along the sidelines, and $50 Dawg Pound For their final project, Marino’s team you need some help, a recent Market- seats went up to $65. “created a baking service that sent ingredi- Watch.com story, featuring comments from ents and a recipe each month so that fami- Kristin Kirkpatrick, manager of wellness nu- Office work: University Hospitals created the lies with young children could cook togeth- trition services at the Cleveland Clinic Well- executive office of innovation and appointed Dr. er,” The Journal reported. ness Institute, might do the trick. Marco A. Costa as vice president and chief inno- The class “made me think differently She has four diet suggestions: vation officer of the health system. In the new about all the things that go into maintaining role, Costa will lead a team focused on “initia- 1. Eat palm-sized portions. and starting a small business,” Marino said. tives related to innovation to maximize quality, 2. Eat five colors a day, to help ensure you Doris Korda, a Hawken administrator and patient experience and performance,” UH said. COMPANY: Suntrol, Cleveland get a good balance of nutrients. former entrepreneur who created the pro- Costa most recently served as director of the In- 3. Be consistent. (Kirkpatrick doesn’t be- OCCASION: gram, told The Journal, “The secret sauce in terventional Cardiovascular Center and director Its 40th anniversary lieve in “cheat days,” a diet strategy where terms of the kid engagement is that it’s real of the Research and Innovation Center at the The provider of window film technology you’re allowed to eat whatever you want world.” UH Harrington Heart & Vascular Institute. is celebrating four decades in business. one day a week, which some think makes a Suntrol is an Eastman Chemical Co.-certi- diet more sustainable.) Bloom is off: Cliffs Natural Resources Inc. is fied window film business. John Hansen, 4. Get adequate sleep. You might as well A tale of two types of cities seeking creditor protection for the Bloom Lake Suntrol’s owner and president, started Rain- throw all the above tips out the window if Cleveland is among the 60% of U.S. cities iron ore mine in eastern Canada. Cleveland- bow Window Tinting in 1975 (he was 15 years you’re getting less than six hours of sleep a that have not recovered to their pre-reces- based Cliffs said Bloom Lake General Partner old then) and bought Suntrol Custom Tint in night, she says. sion levels, according to the Brookings Insti- Ltd. launched restructuring proceedings in Mon- 1986, incorporating under that name. tution’s new MetroMonitor report, which treal under the Companies’ Creditors Arrange- Now with a dozen employees, Suntrol Getting real ment Act of Canada. The Bloom Lake partner- serves residential customers across the state ranks the economic health of 300 cities in ship recently suspended operations and for and commercial clientele across the region. Hawken School was featured prominent- the world. months has been exploring options to sell some “We’ve seen huge growth in high-tech, ly in a Wall Street Journal story about efforts CNNMoney.com reported that the coun- Canadian assets. Cliffs said the bankruptcy “will impact-resistant security film for use in by businesspeople and educators to find try now is “a tale of two economies: cities fo- schools, airports, government buildings, li- address the Bloom Lake Group’s immediate liq- ways to teach students to be more entrepre- cused on tech and energy are thriving while braries, museums, banks and more,” uidity issues and permit the Bloom Lake Group neurial. some regions, like the so-called Rust Belt, Hansen said in a statement. “Homeowners to preserve and protect its assets for the benefit “The latest initiatives often play down continue to lag behind.” are choosing window film as a cost and en- of all stakeholders while restructuring and sale traditional tasks like creating a business Several U.S. cities in the Great Lakes re- ergy efficient alternative to replacement plan in favor of preparing participants for gion ranked in the bottom 50 cities world- options are explored.” windows. Commercial building owners broader challenges, such as how to get feed- wide for growth. choose film solutions to protect from UV Come together: Farmers National Banc back from customers and knowing when to Cleveland, Syracuse and Dayton had ei- light and infrared heat, increase energy effi- ther flat or negative growth in 2014, accord- Corp., the holding company for Farmers Nation- ciency, reduce glare and enhance privacy. adapt products or business models,” The ing to Brookings. al Bank of Canfield, agreed to buy National And, architects and designers use film to Journal reported. These “Struggle City” economies “relied Bancshares Corp., the parent of First National produce one-of-a-kind design elements.” These efforts come as the proportion of heavily on manufacturing jobs in the past Bank of Orrville, for about $74 million. Under the Suntrol’s list of clients includes the Frank young adults owning a business “has fallen agreement, each shareholder of National Banc- Lloyd Wright Penfield House; Cleveland to the lowest level in at least 24 years,” the and were severely hit with large layoffs dur- shares will be entitled to elect to receive either Clinic; the Cleveland Museum of Art; Ohio newspaper noted. ing the recession,” CNNMoney.com said. $32.15 per share in cash or 4.034 shares of Farm- State University; FirstEnergy Stadium; and The Journal said Hawken introduced a “Now they’re trying to reform their ers’ common stock. The deal is expected to close the Horseshoe Casino Cleveland and Hard semester-long class two years ago in which economies, but their populations are dwin- in the first half of 2015. Rock Rocksino. high schoolers spend nine weeks solving dling, which challenges the value of their For information, visit www.suntrol.com. the real problems facing three local busi- housing markets.” 20150202-NEWS--24-NAT-CCI-CL_-- 1/29/2015 12:56 PM Page 1

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