County, MMPI Grew Apart Bruce Carroll — Right, of Last Wednesday, Sept

20130923-NEWS--1-NAT-CCI-CL_-- 9/20/2013 3:53 PM Page 1

$2.00/SEPTEMBER 23 - 29, 2013

ANALYSIS INSIDE Sizing up the competition County, MMPI grew apart Bruce Carroll — right, of Last Wednesday, Sept. 18, Cuya- Schoolbelles Coming split of tradeshow partners reflects divergent paths hoga County Executive Ed FitzGer- — and other ald told Crain’s his administration By JAY MILLER smaller ter for Health Innovation with what MMPI Inc. of Chicago, are parting, and MMPI are looking for an expe- [email protected] Northeast Ohio can happen when two people marry it appears, because neither side has rienced convention center manag- too young, before each really knows maintained the enthusiasm for the retailers are er to take over operations at the seeing their school uniform It isn’t hard to compare the part- where their lives are headed. other that they had when they were complex. business facing more of a ing of the ways at the Cleveland Cuyahoga County and its part- courting a half-dozen years ago and challenge from major companies Convention Center and Global Cen- ner, tradeshow complex manager then got hitched in 2010. See MMPI Page 18 such as Walmart, Target, Kmart and TJ Maxx. PAGE 3 OHIO CITY Third HOME TO Frontier MARKET may open OPTIMISM its wallet Area has experienced an ‘enormous’ change in sales As venture funds of houses at $200K and up struggle to raise cash, commission By STAN BULLARD [email protected] ponders investing atty and Steve Roberts recently sold their By CHUCK SODER four-bedroom, Shaker Heights home with [email protected] a large yard and in-ground pool to down- size, because their daughters are grown. As venture capital firms step out, PThe couple this month moved into a two-bed- the state of Ohio could step in. room place with a one-car carport and 30% less The Ohio Third Frontier Commis- space. sion is thinking about funneling The new place is a single-family home built in more money to young technology 1854 on Carroll Avenue in Cleveland’s Ohio City companies that normally would rely neighborhood that cost $290,000. on venture capital, which is becom- “We know we’re at the higher end in Ohio City, ing harder to find. but we got a really good home,” Mrs. Roberts said. With Third Frontier’s help, See OHIO CITY Page 17 INSIDE: high-tech companies in state are hiring more employees. Page 7 In Ohio and across the country, venture capital firms are finding it hard to raise cash. Thus, they’re making fewer investments — a trend that many industry watchers expect to continue. Several members of the Third Fron- tier Commission and its advisory board voiced concern about the state of the venture capital sector last week during their annual retreat in Mount MARC GOLUB PHOTOS Sterling, just south of Columbus. Steve and Patty Roberts’ living room Steve and Patty Roberts purchased their home on Carroll Ave. in Ohio City for $290,000. See FRONTIER Page 7

38 SPECIAL SECTION 7 GREEN CONSTRUCTION

74470 83781 on buildings and businesses ■ Pages 11-15 by Crain Communications Inc. Vol. 34, No. 38 0 PLUS: GREEN SPACE PROFILES ■ INCENTIVE PROGRAMS ■ & MORE 20130923-NEWS--2-NAT-CCI-CL_-- 9/20/2013 2:08 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 23 - 29, 2013 COMING NEXT WEEK IN THE MOOD TO SPEND You’re finally spending money like it’s 2008. The Bureau of Labor Statistics reports that average expenditures per household in 2012 were $51,442, an Event planning increase of 3.5% from $49,705 in 2011 and the first year since 2008 in which the figure passed $50,000. (It was $50,486 that year.) Here’s a breakdown of 700 W. St. Clair Ave., Suite 310, In next week’s special how the average U.S. household spent money last year: Cleveland, OH 44113-1230 section, Crain’s will get Phone: (216) 522-1383 Category Expenditure Change from 2011 Fax: (216) 694-4264 you up to date on what’s www.crainscleveland.com going on at the Cleveland Housing $16,887 +0.5% Publisher/editorial director: Convention Center, Transportation $8,998 +8.5% Brian D. 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SEPTEMBER 23 - 29, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Lawsuits allege Invacare slow to reveal woes vacare stock because executives failed to Latest claim seeking disclose promptly the seriousness of regulatory problems that eventually forced class action status says Invacare to shut down much of its wheelchair manufacturing operations in Elyria FDA issues caused big and revamp its quality control processes. Thus, many Invacare employees — hit to retirement plan who are given the option of buying the company’s stock through the retirement By CHUCK SODER plan — continued to buy and hold shares, [email protected] not realizing the price of the stock was about to start falling, the lawsuit alleges. A lawsuit that seeks class action status At the start of 2011, the Invacare retire- alleges that Invacare Corp. and its top executives kept employees in the dark ment plan held $21 million in company about regulatory problems that caused stock, which accounted for about 12% of the company’s stock price — and its re- the plan’s assets, according to the com- tirement plan assets — to take a big hit. plaint, filed Aug. 26 in U.S. District Court The lawsuit states that the retirement in Cleveland. plan was “heavily over-invested” in In- See INVACARE Page 5 THE WEEK IN QUOTES “On average, more than “The shale revolution has once every two weeks, created a new opportunity there is a buyer paying to meaningfully grow the more than $200,000 for a U.S. economy. I believe home or condo in Ohio that this is, this could be, City and it has picked up the largest single recently. The number of advantage that the U.S. $200,000 sales has has enjoyed in the last increased 50% over the century.” last three years.” — Tom O’Brien, president and CEO, TravelCenters of America LLC. Page 9 — Roger Scheve, an agent at Re/Max Beyond 2000. Page One “When you think about “I think in the long run green construction, you JANET CENTURY the benefits are not just think recycled materials, Bruce Carroll is owner and president of Schoolbelles, which has been in business since 1956. He is shown with Noi Phumchaona, who has worked for the company for 31 years. money — it’s the environ- low VOCs (volatile ment and how we treat organic compounds), our planet. There is a cost energy efficiency, all FIT FOR COMPETITION savings overall in going things that are hard to green and sustainable. It’s see. … A green roof By LAURA STRAUB Increasing demand for [email protected] a little bit higher up-front stamps a project as a cost in the beginning, but visual representation of he local retailer that became Silverman’s Dis- school uniforms has led count Department Stores got its start right after the payback is there.” what the building owner to small local retailers World War II, when Marcus Silverman and his — Tania Anochin, Cleveland State is trying to do.” three brothers in 1946 opened a store in Cleve- University project manager. Page 12 Tland that sold government surplus goods — stuff such as — Brian Lambert, director of battling national chains underwear, socks, shirts and rainwear. products and systems, The Garland See FIT Page 9 Co. Page 11

INSIGHT Cavs are playing new sort of numbers game

Tube showed the 22-year-old power forward’s Data-tracking cameras are now the norm in the NBA, total dribbles, touches and the miles he ran two nights earlier against the New York Knicks. At and team is first to use them for marketing purposes the start of the Utah game, the scoreboard dis- By KEVIN KLEPS ticed that the Q-Tube — the gigantic, fire-shoot- played the average miles each player in the [email protected] ing scoreboard — was spitting out some unique starting lineup had compiled in games last season — at the time, a very slight edge went to Mr. statistics. CONTRIBUTED PHOTO Thompson over All-Star point guard Kyrie Irv- Keen observers of Cleveland Cavaliers games When Tristan Thompson appeared at the Six SportVu data-tracking cameras ing, 2.31 miles to 2.28. at Quicken Loans Arena during the final few free-throw line during the first quarter of a were installed at Quicken Loans months of the 2012-13 season might have no- March 6 matchup against the Utah Jazz, the Q- See CAVS Page 6 Arena in 2012. 20130923-NEWS--4-NAT-CCI-CL_-- 9/20/2013 3:08 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 23 - 29, 2013 SOLD Big changes are in cards at

6880 LAKE ABRAM DRIVE, MIDDLEBURG HTS, OHIO Cleveland printing company Young owner is trying to rejuvenate Hotcards with fun and creative culture By CHUCK SODER [email protected]

John Gadd no longer lives on 5- Newmark Grubb Knight Frank is Hour Energy drinks, but you would- pleased to announce the sale of n’t guess it, judging from the 6880 Lake Abram Drive in Middleburg Visit changes he has made at Hotcards. Heights. Terry Coyne and Kristy Hull TerryCoyne.com A 27-year-old veteran of the represented the Seller. Or Call Terry at printing industry, Mr. Gadd has 216.453.3001 spent much of the last year working to rejuvenate the Cleveland print- 1350 Euclid Ave, Suite 300 ing company, which had been fly- Cleveland, Ohio 44115 ing on autopilot in recent years. JANET CENTURY Hotcards owner John Gadd stands in front of a huge mural of late Apple CEO Since buying Hotcards with a few Steve Jobs at the company’s new headquarters on Superior Avenue. other investors for an undisclosed price last December, Mr. Gadd has said. The company’s previous own- made big operational changes and er, Columbus Woodruff, moved to infused the business with a fun, cre- Houston three years ago, and since ative culture inspired by innovative then the company’s sales have been companies such as Apple and Zap- flat, Mr. Gadd said. Revenue is pos, an online clothing retailer that starting to grow somewhat, but Mr. puts a heavy emphasis on happy Gadd said its growth rate should customers and happy employees. rise as the company finishes digest- “It’s a 15-year-old company that ing the changes he has made. we’re running like a startup,” Mr. Gadd said. Going with the flozio things On the operational side, Hot- One more big change is on the cards moved its printing operation way, though: The company, which from its Cleveland headquarters to takes most of its orders via the In- 10 a larger sister company in Colum- ternet, plans to launch a new web- bus that can produce “a better site later this year. The site will in- product for a lower price with a clude a software tool designed to faster turnaround,” Mr. Gadd said. help smaller companies and any- He would not identify the sister one else on a budget design their company, which is one of Hotcards’ to do in Northeast Ohio GREG HARRISS own marketing materials. your guide to the weekend new investors. Hotcards plans to turn 20 people into “Just because it’s self service The move caused local produc- every Thursday afternoonafternoo human fireballs. Ted Batchelor, the doesn’t mean it has to look like tion employees to lose their jobs: Chagrin Falls stuntman pictured here, crap,” he said. Mr. Gadd rehired only half of the 23 will be organizing the event on Oct. 19 That was the general idea behind people who previously worked for at Shooters. flozio, a Cleveland software compa- Hotcards, which technically laid off ny Mr. Gadd started in 2008 at age all its employees just before the “We’re trying to embody creativ- 22. Flozio raised $4.5 million from new investors bought the company. ity,” he said. investors before it was bought for Since then, however, Hotcards has That same enthusiasm perme- an undisclosed price by the compa- beefed up its sales, marketing, cus- ates the business: Its customer ser- ny’s largest customer, Demand- CrainsCleveland.com tomer service and design teams and vice team is a “customer obsession Bridge LLC of Baltimore. now employs 18 in Northeast Ohio. team.” Employees are instructed to Afterward, many of flozio’s 10 Cleveland employees went to work Think different deliver prints wearing red oven mitts because they’re supposedly for Quéz Media Marketing; Mr. Other changes are more fun: For too hot to hold. Dozens of 5-Hour Gadd owned a stake in the Cleve- instance, when the company moved Energy drinks line the windowsill in land-based boutique marketing into its new, 22,000-square-foot the company conference room. firm until selling it to his other part- headquarters on Superior Avenue in And a giant Hotcards logo has re- ners a few months ago. Flozio also April, it immediately started giving placed the Futon Factory sign that employed about 40 people at an of- the place an “Apple Store meets art used to adorn the building. fice in India, which was closed. gallery” feel,” Mr. Gadd said. The previously quiet company In Hotcards, Mr. Gadd found a That’s why there’s a giant, rain- plans to take that energy level up company with “a great foundation” bow-colored mural of Apple Com- another notch when it attempts a to build on, said Kendall Wouters, puter’s late CEO, Steve Jobs, in the highly visible publicity stunt: On CEO of Reach Ventures, a Cleveland AIR CHARTER SERVICE middle of the office, which is just Oct. 19, the company plans to host company that is helping launch AIRCRAFT MANAGEMENT around the corner from the compa- a party at Shooters, where atten- multiple businesses related to data ny’s old, 14,000-square-foot space on dees will watch 20 people be turned analytics. East 23rd Street. Hotcards is looking into human fireballs while floating And Mr. Gadd — who started for artists interested in painting the on a barge in the Cuyahoga River. selling industrial printers for Solon- many other white walls that lead Among the burning bodies will be based Graphco soon after graduat- from the company’s offices, through Mr. Gadd himself, who aims to beat ing from Chagrin Falls High School a wide hallway strewn with strings of the existing world record for most in 2004 — has what it takes to grow lights, to the parking lot out back. people simultaneously on fire. The the business, said Mr. Wouters, The new look is intended to con- record stands at 17. who gave him advice during his vey that Hotcards isn’t just a print- “I tried lighting myself on fire as flozio days. ing company that churns out busi- a kid. … This will be different,” he Mr. Wouters still rides bikes with ness cards, brochures and other said with a laugh, adding that fire- Mr. Gadd, who always wants to ride marketing materials. Today, the fighters will be on the barge to up the biggest hills. Cleveland’s Premier Air Charter Service company focuses more on promot- make sure nothing goes wrong dur- “Literally, he’s Popeye,” Mr. ing the 40-second burn. Wouters said with a laugh. “The guy Serving Northeast Ohio with four Beechjets and a Hawker ing its design capabilities, Mr. Gadd said. Hotcards needed a new start, he eats spinach and he goes nuts.” ■

Volume 34, Number 38 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth www.FlySkyQuest.com • 216-362-9904 week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2013 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Depart- ment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20130923-NEWS--5-NAT-CCI-CL_-- 9/20/2013 1:22 PM Page 1

SEPTEMBER 23 - 29, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Invacare: Company says it Rogers Group will change hands is in compliance with FDA and online job boards to hunt for Head of recruiting companies that are in hiring mode, continued from PAGE 3 “We don’t believe they which he said is a good way to iden- But soon, revelation of Invacare’s have any merit.” company says two tify potential clients. He’s also a big regulatory problems would chop fan of using LinkedIn’s premium the value of that stock in half: From – Lara Mahoney, director of employees eventually features and other social media Jan. 3 to Dec. 30 of that year, In- investor relations and corporate tools such as Bullhorn Reach to find vacare shares fell from $30.49 to communications, Invacare, on will own business people to fill those positions, re- $15.21, which is exactly where the the lawsuits filed against the Nash Spino gardless of whether they’re looking price stood at the close of business company that are seeking class By CHUCK SODER for a job. on Wednesday, Sept. 4. action status [email protected] how fast the 14-year-old business “Everybody that we’re looking for The lawsuit said Invacare should has been growing over the past few is very hard to find,” he said. reimburse its retirement plan for bought nearly $10.5 million of its It may not be long before Rogers years. The growth is driven partly That effort has helped Rogers the $11.5 million it has lost on com- own stock from Mr. Mixon, its for- Group is no longer owned by Terry by the improving economy, but it Group bounce back fast from a re- pany stock since July 2010 — just mer CEO, in March 2011 — three Rogers. also has received a boost from Mr. cession that was hard on the busi- before the U.S. Food and Drug Ad- months after the FDA told Invacare The retiring founder of the re- Nash’s efforts to market Rogers ness, given how reluctant compa- ministration began to conduct in- about problems at its Elyria opera- cruiting company based in Middle- Group to clients as well as the exec- nies were to hire employees. spections related to Invacare’s qual- tions but before that information burg Heights has struck a deal to sell utive and technical employees that Mr. Spino, 47, leads the opera- ity control processes. was made public. The stock pur- the business to two younger mem- the company recruits. tional side of the business. Mr. The lawsuit has yet to be certified chase — 350,000 shares bought at bers of the company’s leadership “With Chris’ performance of late, Nash, 33, said they complement nearly $30 each — amounted to by the court as a class action. If that team, but they’re not paying cash. it’ll probably be two-and-a-half to each other well because they are about 14% of the Invacare stock Mr. occurs, the case would be argued on They’re buying the company three years,” Mr. Rogers said. “both good at different things.” Mixon owned at the time. behalf of the plan and its beneficia- through sweat equity. The company has 16 employees, It’s unclear what their titles will Mr. Mixon, who since has bought ries. The lawsuit names only one Vice presidents Chris Nash and up from 11 three years ago. Sales be after the transition is complete, and sold smaller amounts of In- plaintiff, Nancy Murray, who is a Mark Spino each own 10% of should exceed $2 million this year, but the two men already play big vacare stock, told the company the former employee, according to In- Rogers Group today, and they’ll be up from $1.6 million last year and roles in managing the business, as money from the stock sale was for vacare spokeswoman Lara Ma- awarded more shares over time, $1.2 million in 2011, Mr. Nash said. Mr. Rogers spends his winters in “personal financial planning pur- honey. The plaintiff’s lawyers would based on how much profit the com- Rogers Group has marketed itself Florida. He’ll remain CEO for now, poses,” according to a document not comment about the case. pany can generate. more aggressively over the past few but eventually he’ll move into a filed with the Securities and Ex- The lawsuit is the second case Mr. Rogers, who turns 65 at the years and ramped up its use of so- consulting role — and focus more change Commission in March 2011, seeking class action status filed end of October, originally estimated cial media, according to Mr. Nash, on enjoying life. two months after he stepped down against Invacare this year. In May, it might be as long as four years be- who heads the company’s sales and “I have no problem with these as CEO. other large Invacare investors filed fore they own the entire business. marketing efforts. folks running the business for me,” Ms. Mahoney, director of in- ■ a broader lawsuit against the com- But then he reconsidered, given For instance, he uses LinkedIn Mr. Rogers said. vestor relations and corporate company, claiming investors were not munications for Invacare, would made aware of the seriousness of not provide additional detail re- Invacare’s problems with the FDA. garding Invacare’s purchase of Mr. Many of the problems related to Mixon’s shares. procedures the company used to NATIONWIDE COMMERCIAL AUCTION The company doesn’t generally identify and fix problems related to make an announcement when the product quality. FDA sends it a Form 483 detailing $400+ MILLION IN COMMERCIAL PROPERTIES & NOTES IN 29 STATES Questions on timing the results of an inspection because inspections are frequent in the The two lawsuits make many of BID ONLINE OCTOBER 8-10 heavily regulated medical device in- the same arguments. They suggest dustry, Ms. Mahoney said. FEATURED OHIO COMMERCIAL REAL ESTATE Invacare executives should have “It’s not something we’d typical- mentioned the problems sooner, so ly call out beyond our normal dis- that investors could have sold In- closure requirements,” she said. vacare stock, or at least stopped buying it. ‘We are in compliance’ For instance, the FDA in August The Invacare executives should 2010 sent Invacare a Form 483 de- have released information about scribing how the company failed to those inspections because the prob- respond adequately to recurring re- lems identified were “serious ad- ports that its electric beds had verse issues that impact Invacare’s caught fire and caused patients to current business and business become trapped between the rail prospects,” said Benjamin Gald- and the mattress. The incidents ston, an attorney with Bernstein, caused at least three deaths, as well Litowitz, Berger & Grossman in San as other injuries, according to an Diego. FDA warning letter sent to Invacare Mr. Galdston is one of the lawyers executives in December 2010. representing plaintiffs in the broad- However, the public wasn’t told er lawsuit filed in May; those plain- about those problems until the FDA tiffs include the Government of made its warning letter public in SEARCH CODE: B820-100 Ryan Fisher Guam Retirement Fund and the January 2011, according to the law- University Heights, OH ABSOLUTE AUCTION Lic. No.: SAL.2009001953 Cambridge (Mass.) Retirement Sys- suits. 216-239-5069 tem. 5HWDLOŘ6) Both lawsuits also state that, in ryan.ﬁ[email protected] Invacare’s Ms. Mahoney would- Starting Bid: $0 December 2010, the FDA sent In- n’t say much about the two law- vacare two Forms 483 detailing Broker co-op or ﬁnder’s fee available on select assets. suits, given that they both are ongo- problems at the company’s head- ing. Call or email contact for details. All assets auctioned individually. quarters and its Taylor Street plant “We don’t believe they have any in Elyria, where the company makes View all 140+ assets at www.auction.com/commercial merit,” she said. power wheelchairs. The lawsuits She noted, however, that In- said it wasn’t until October 2011 vacare has finished two of the three that Invacare CEO Gerald Blouch audits the FDA requires the compa- BROKERS AND OWNERS, SELL YOUR COMMERCIAL OR RESIDENTIAL PROPERTY made it public that the company’s ny to complete before it can be re- FDA problems extended beyond the Brokers retain your commission. No auction listing fees. Call 888-774-3852 or visit www.auction.com/sell plant that made the electric beds in leased from a consent decree that EXAMPLE: Sanford, Fla. severely has restricted its Elyria op- USE THE SEARCH CODE TO EASILY FIND A FEATURED ASSET Mr. Blouch is a defendant in both erations since December 2012. Simply enter the code in the Auction.com search bar B820-100 lawsuits, as is A. Malachi Mixon III, After completing the second au- Invacare’s chairman and its long- dit, Invacare was allowed to resume time CEO prior to Mr. Blouch as- designing wheelchairs and electric suming that job in January 2011. beds in Elyria. The company plans WWW.AUCTION.COM The broader lawsuit from May also to send in mid-November to the names chief financial officer Robert FDA documents detailing the re- Gudbranson. The lawsuit related to sults of the third audit. If the FDA the retirement plan leaves out Mr. accepts the results, Invacare will be DISCLAIMER: The information being provided in connection with the auction is for informational purposes only. No representations or warranties are being made as to the accuracy or completeness Gudbranson but names four other able to restart full wheelchair pro- of any information provided. Documents and pictures may not represent the current condition of the property at the time of sale. All properties, notes and/or loan pools are being sold “AS IS, WHERE executives: Patricia Stumpp, Dale C. duction at its Taylor Street plant. IS, WITH ALL FAULTS AND LIMITATIONS” and all sales are “FINAL.” Prospective bidders are encouraged to conduct their own due diligence and investigate all matters relating to the properties, notes “We’re showing the FDA that we and/or loan pool that they are interested in purchasing. No prospective bidder may trespass on any property, disturb the occupants, or contact the borrowers, if any. It is recommended that prospective LaPorte, Michael F. Delaney and bidders seek independent advice, including legal advice, to perform due diligence and to fully understand the auction process in general. Subject to auction terms and conditions. Auction.com, LLC, Charles S. Robb. are in compliance,” Ms. Mahoney 1 Mauchly, Irvine, CA 92618, (800) 499-6199. OH RE Brkr REC.2012003219; Auction Firm Auction.com, ltd 2009000113. 08132013 Both lawsuits note that Invacare said. ■ 20130923-NEWS--6-NAT-CCI-CL_-- 9/20/2013 2:03 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 23 - 29, 2013 Cavs: Advanced stats will be part of team’s Midtown Investment Opportunity TV and radio broadcasts for the first time • 6)6WRU\2I¿FH%XLOGLQJ • &XUUHQWO\2FFXSLHG • $FUHV • 6WURQJ3URIHVVLRQDO7HQDQW%DVH continued from PAGE 3 • $GGLWLRQDO$&3DUNLQJ/RW ZLWK1R'HOLQTXHQF\,VVXHV Six data-tracking cameras that $FURVVWKH6WUHHW,QFOXGHG • 2QH%ORFN6RXWKRI57$+HDOWKOLQH • were installed at The Q last winter 3DVVHQJHU )UHLJKW(OHYDWRUV 6HUYLFH were processing the numbers in real time. What fans saw and read were the RECEIVERSHIP SALE very basics from the SportsVU basketball tracking system — miles, dribbles and times touching the ball. What the teams get from the technology that monitors player, referee and ball movement is far more complex — and profound. 4614 Prospect Avenue “The game has changed,” said Tad Carper, the Cavaliers’ senior Cleveland, Ohio vice president of communications. The league buys in FOR MORE INFORMATION, CONTACT: STATS LLC, a Chicago-based Gregory B. West David R. Horowitz sports technology, data and con- 216-861-7200 tent company that acquired the www.ostendorf-morris.com SportVu technology in 2009, sold its software to six NBA teams for the 2010-11 season. By the end of last season, half the league’s 30 teams had the technology. The Cavaliers’ installation was complete last December. This Oct. 29, the opening night of the 2013-14 NBA campaign, every CONTRIBUTED PHOTO arena will be equipped with the The Q-Tube on March 6, 2013, displayed Tristan Thompson’s SportVu statistics SportVu system — a service for from the Cleveland Cavaliers’ previous game at Quicken Loans Arena. 1HHGÀQDQFLQJ" which teams had been paying STATS in the “low six figures” per TRACKING THE GAME house with some organizations. In Cleveland, they are much more in- year, according to Kerry Bubolz, the SportVu’s technology measures the Cavs’ president of business opera- tegrated.” We’re following: In addition to corporate sponsor- OLVWHQLQJ tions. ■ Players and teams: Speed, ships, social media and the in-are- And this time, the league is pick- distance, shooting, passing and Choose CBS ing up the tab. na presentation, the Cavs plan to UDO\OGHZDVR defense use some of the next-level stats dur- The NBA is the first major sports ■ Ball: Trajectory, movement, DKGHEVM=FMOTDROHXIMHGHDK league in the United States — and ing television and radio broadcasts speed and time of possession for the first time this season, Mr. HJVMIPHOU \OFVOFHRSU\OF maybe the world — to invest this Source: STATS the power of collaboration. heavily in motion-tracking software. Bubolz said. “Now that the league is engaged business benefit to the data, even Mining the data for gems with this in totality, it widens the though the numbers were giving DOWHOUMDO\=\OF/O\OGMOT\W\M=\E=H The value the stats provide to the scope of what you can do and the clubs information on such basket- basketball side of the “house,” as stories you can tell — the season- ball-centric tendencies as pick- Mr. Kopp called it, is more obvious. long kind of progression that makes and-rolls and rebounding. STATS gives each team detailed sense from a corporate partner per- In late January, the Cavs began reports after every game, but the spective and fan engagement,” Mr. using some of the stats on the more cerebral organizations won’t Carper said. scoreboard and in other areas of the stop there. SportVu’s technology measures arena, along with the team’s social SM “The real value is how you mine Providing Commercial Loan Financing in Partnership with Area Credit Unions players and the ball in X and Y coor- media accounts. the data,” said David Griffin, the dinates. The ensuing data can de- This season, the team plans to 440-526-8700 Cavs’ vice president of basketball Jonathan Mokri www.cbscuso.com pict such intricacies as the speed of align the SportVu stats with adver- [email protected] a pass, the arc of a shot and a play- tising partners by using key num- operations. “Because we have some er’s acceleration and deceleration. bers as a selling point. experience with it and because we There are two overhead cameras “A lot of times when you’re engag- have been exposed to some areas of positioned over the baseline on ing a corporate sponsor, they want value (in the technology), we feel each end of the court, a camera be- to own certain things, they want to like we’ll exploit it better than we hind each team’s basket and two on own certain words,” Mr. Bubolz had before.” the side of the court. The system said. “So we started playing Prior to joining the Cavaliers in processes the results in real time, matchup with words like durable, 2010, Mr. Griffin spent 17 years with McDonald Hopkins BUSINESSB HOUR and the data is available via iPads innovation, efficiency, speed, stami- the Phoenix Suns. The Suns were during the game, should a coaching na, and as we find companies that one of the organizations that served staff be inclined to use the numbers are interested in words like that, you as a “test venue” for SportVu’s tech- on the fly. start to play the matchup game. nology prior to its launch, Mr. Grif- “How To” Termination and For the Cavs, the technology “You say, ‘All right, Company A fin said. for Employers went far beyond Mr. Irving’s drib- that wants to own this word, here’s Mr. Griffin said the Cavs will have Preparing for Litigation bles and the number of times Mr. a way you can own that word three employees whose “sole job” is Thompson was receiving the ball in through all these channels — in- interpreting the data that comes the post. arena, social channels, television, from the cameras. radio,” he continued. “You just start “It’s boundless the value that you Thursday, October 10, 2013 Playing the matchup game can get out of this,” Mr. Griffin said. Noon to 1:15 p.m. EDT – Business Hour to create that true sponsor connec- When Brian Kopp, a senior vice tion. These are all things that we “You can just keep adding on.” McDonald Hopkins, 600 Superior Ave., Suite 2100 president at STATS, made his think is really unique about it from Last year, the team hired Ben- Downtown Cleveland SportsVu pitch to the Cavaliers in a business standpoint.” jamin Alamar, a highly regarded an- 2012, he noticed something different. The idea is something Mr. Kopp alytics consultant, professor and RSVP: mcdonaldhopkins.com In addition to Cavs general man- had hoped a team would embrace author who had worked for the Ok- or call: 216.348.5400 to register. ager Chris Grant and his basketball amid a sea of numbers that can be lahoma City Thunder. For “com- staff, the team sent Mr. Bubolz to more intimidating than a healthy petitive reasons,” Mr. Griffin speak with Mr. Kopp at the team’s Andrew Bynum in the paint. wouldn’t disclose the size of the training facility in Independence. The business benefit of the data Cavs’ beefed-up analytics depart- “I was out at the practice facility “was something I had pitched to a ment, but it’s evident the organiza- and Kerry was at the meeting,” Mr. lot of other teams, but when you go tion, in the words of Mr. Carper, is McDonald Hopkins LLC Kopp said. “He said, ‘When are you and speak with teams, you’re most- going “all in” with the data. 600 Superior Ave., East, Suite 2100, Cleveland, OH 44114 • 216.348.5400 leaving? Can you come down to the ly pitching to basketball operations “You need people to interpret Carl J. Grassi, Shawn M. Riley, President Cleveland Managing Member arena and talk to the rest of my guys,” Mr. Kopp said. “When you and harvest the data,” Mr. Carper Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach staff?’ So I changed my flight and mention the business side, some said. “You have this incredible race mcdonaldhopkins.com went and talked to them.” are like, ‘Yeah, yeah, whatever.’ car at your disposal, and you have The Cavs immediately saw a There really are two sides of the to have people who can drive it.” ■ 20130923-NEWS--7-NAT-CCI-CL_-- 9/19/2013 3:20 PM Page 1

SEPTEMBER 23 - 29, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Frontier: There is clear Program’s support critical to hiring jump REPORT ONLINE investment capital ‘gap’ High-tech companies in state attribute To read the Ohio Development Ser- increase in employees to Third Frontier vices Agency’s annual report for 2013, continued from PAGE 1 “When I ask them, ‘Do which includes Third Frontier, go to: There, they discussed possible you have trouble getting By CHUCK SODER lar spent, if you count new product tinyurl.com/lmrz7fa changes to the economic develop- capital?’ they say ‘No.’ ” [email protected] sales that companies attribute to ment program, which makes invest- assistance they received from the pressed several of those leaders, in- ments in tech companies and re- – Ben Kanzeg, deputy director High-tech companies in Ohio say program. cluding Third Frontier Commission search projects. of policy and science, and they employ 7,800 people specifi- Those leverage ratios would be member Gary Lindgren. A few commission and advisory technology adviser for Gov. John cally because of help they receive even higher if the analysis had “These four pages here tell me board members expressed strong Kasich through the state’s Third Frontier looked at older investments made that what we’re doing here is work- support for the idea of using Third economic development program — before 2007, when the 13-year-old ing,” said Mr. Lindgren, executive Frontier money to fund young tech “It’s a very deeply held and the number is on the way up. program made big changes to its director of the Cincinnati Business companies that could struggle if Those 1,080 companies created lineup, said Deborah Cummings, Committee. they can’t find cash. view that we have a real or retained about 7,800 jobs be- senior program manager for Bat- So why did the jobs figure in- Among them was advisory board funding problem pending tween 2007 and 2012. That’s up telle’s Technology Partnership crease so much in 2012? The figures member Tom Waltermire. The and rearing its ugly from 5,000 in 2011, a 56% increase, Practice. Even so, those ratios beat are cumulative, so the 2012 number shrinking venture capital sector is head.” according to an analysis conducted numbers posted by tech-focused gets a boost from companies that the “No. 1 issue” the Third Frontier by Battelle Memorial Institute, a economic development programs received support from the Third program needs to address, accord- – Rick Fearon, Ohio Third nonprofit research and develop- in other states, she said. Frontier in the previous five years ing to Mr. Waltermire, CEO of Frontier Commissioner member ment group in Columbus. The fig- So, how accurate are all these but didn’t ramp up hiring until re- Team NEO, a nonprofit that works and vice chairman, chief financial ure stood at 3,560 in 2010 and 1,460 numbers? The companies were told cently. to attract businesses to Northeast officer and chief planning officer, in 2009. to include only the jobs that would Companies also could be hiring Ohio. He also read a letter from for- Eaton Corp. The 1,080 companies in the not exist and dollars they would not more people because the economy mer advisory board member John analysis also have attracted $3 bil- have raised without Third Frontier is improving, according to the Bat- capital gap” when it comes to the lion in the form of grants and in- support, according to Keith Jenkins telle analysis. Huston, who wrote that the state availability of investments in the $2 should make a “concerted effort to vestment capital after receiving of the Ohio Development Services A large majority of the 1,080 com- million to $5 million range. Of the support from the Third Frontier Agency. panies in the analysis received sup- attract venture capital funds to 27 venture firms his fund helped fi- Ohio.” program, which finances technolo- However, the state isn’t sure how port through intermediary groups finance, more than half won’t make gy development projects and orga- well companies are adhering to that nanced in part by the Third Frontier; Mr. Waltermire voiced support more investments unless they can for an idea proposed by commis- nizations that work with startup standard, he said two weeks ago, those groups include Ohio-based raise more capital on their own. companies. That total averages during a meeting of Third Frontier venture capital firms and organiza- sioner Bruce Langos, who said Commission member Rick Third Frontier should make “big $4.60 for every Third Frontier dollar leaders. tions that help entrepreneurs, such Fearon sees the problem, too. spent since 2009 — or $7.80 per dol- Even so, the Battelle report im- as JumpStart Inc. of Cleveland. ■ bets” on the most promising com- “It’s a very deeply held view that panies that already have received we have a real funding problem some form of assistance through pending and rearing its ugly head,” the economic development pro- said Mr. Fearon, who also is vice gram. chairman, chief financial officer There’s no guarantee the com- and chief planning officer at Eaton Thursday, October 3, 2013 mission will take action: So far, all Corp., a diversified manufacturing its members have done is ask the 7:00-8:00 a.m. -Breakfast/Networking company in Beachwood. Ohio Development Services Agency It’s unclear how the Third Fron- 8:00-9:30 a.m. - Panel Discussion to figure out whether the shrinking tier Commission would address the venture capital market is causing Embassy Suites, Rockside lack of capital, but Messrs. Langos trouble for high-tech entrepreneurs and Waltermire said the group in Ohio. could partner with venture capital Commission member Ben firms to identify some of the most Kanzeg suggested the group get the promising companies in Ohio. Then additional data, because he isn’t Quarter Flurry both the commission and the ven- ththQuarter Flurry sure Ohio entrepreneurs are strug- ture capital firms could put money gling to fund their businesses. into a fund that would invest in “When I ask them, ‘Do you have Deals and dealmakers usually are those businesses. trouble getting capital?’ they say ‘No,’ ” said Mr. Kanzeg, who serves Mr. Langos specifically suggested racing to the end of every year... as both deputy director of policy the proposed fund make large in- and science and technology adviser vestments in companies the Third for Gov. John Kasich. Frontier already has helped in some Will 2013 be any different? Though the nation’s economy way. has been improving slowly over the “Look at our portfolio. What are past few years, U.S. venture capital the crown jewels?” said Mr. Langos, investments dropped from $29.7 who also is chief operating officer at Panelists: billion in 2011 to $27 billion in 2012, Teradata Corp., a data analytics software company in Dayton. a decline of nearly 10%, according t)PXBSE#PCSPX Partner to the MoneyTree Report distrib- Advisory board member Mike uted by consulting firm PwC and Hooven said the Third Frontier Taft Stettinius & Hollister LLP the National Venture Capital Asso- might be better off focusing on ear- ciation. Figures from the first two ly-stage tech startups as opposed to more established “gazelle” compa- quarters of 2013 are even lower than t,FO.BSCMFTUPOF President those in the like quarters the previ- nies that are ready to grow quickly. Sponsored by: ous two years, according to the re- “For the most part those later- RBS Citizens and Charter One port, which is based on data from stage gazelles don’t need Third Thomson Reuters. Frontier funding,” said Mr. Hooven, Plus, fewer venture capital firms who has started multiple Cincin- nati-area companies that have re- are raising money, and Northeast t1FUF$IVEZL Shareholder Ohio is no exception: Active local ceived support from Third Frontier firms such as Early Stage Partners of programs. Maloney + Novotny LLC Cleveland and Glengary of Beach- Either way, if the commission wood are out of money to make wants to funnel more venture capi- new investments and won’t be able tal into Ohio’s economy, it has the to raise new funds unless some of resources to do it. The group has t3ZBO.FBOZ the companies they’ve invested in awarded just $33 million of the $236 Co-Managing Partner are sold for big bucks or go public. million in its 2013 budget, mainly Plus, the $150 million Ohio Capital because the Ohio Development Ser- Edgewater Capital Partner Fund, a taxpayer-backed entity that vices Agency fell behind last year as invested in venture capital firms it hammered out what some of the throughout the state, won’t make Third Frontier’s many new pro- more investments unless it is re- grams would look like. Registration: Underwritten by: newed. The commission has a total of $550 million to spend on high-tech CrainsCleveland.com/BREAKFAST ‘Rearing its ugly head’ economic development projects Ohio Capital Fund director Paul over the next few years and has or call 216-771-5159 Cohn, who attended the retreat, voiced support for spending some told Crain’s he is “clearly seeing a of that money in big chunks. ■ 20130923-NEWS--8-NAT-CCI-CL_-- 9/19/2013 4:04 PM Page 1

8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 23 - 29, 2013

PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) ASSOCIATE PUBLISHER/EDITORIAL: John Campanelli ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Park it he Nov. 5 ballot in Cuyahoga County will be a crowded one, with a number of tax levies going before voters. One levy to which we T give an enthusiastic “yes” is Issue 80, the tax that provides a majority of the money for the operation and investments of Cleveland Metroparks. The park system known as the Emerald Necklace is a tremendous community asset that will be cele- brating its 100th birthday in just a few years. Howev- FROM THE PUBLISHER er, what began in 1917 as the Cleveland Metropoli- tan Park District is hardly a staid, long-in-the-tooth organization. It’s Browns’ déjà vu, all over again Rather, Metroparks is going through an evolution of sorts, thanks to an agreement it reached with the can’t help myself. I know that by the When the trade of running back Trent * * * * * Ohio Department of Natural Resources to take over time you’re reading this on Sunday Richardson made its way to social media In a recent “duel of the op-eds” in the the operation of Cleveland’s six lakefront parks, at home or Monday at your desk, and last Wednesday’s evening sports- Sun newspapers, Cleveland State Uni- which include Edgewater Park and Euclid Beach. much will have been written about casts, the fury came in waves. The big, versity’s Tom Bier debated former Geau- Ithe Cleveland Browns, includ- bruising back had played very ga County Commissioner Skip Claypool The lakefront parks sit on land that is owned by well last year, giving the Browns over whether small communities should the city but until this summer had been run by the ing the recent game. BRIAN But I must weigh in, to the ex- TUCKER their first bona fide threat in merge, something we’ve been advocat- state for 34 years. As the state budget became tent that the opinion of a long- years. ing for a long time. So I really tried to set tighter, maintenance of the parks eroded, and so did ago sportswriter and lifetime But there’s no arguing that aside the bias of my personal opinion their quality. Beaches and grounds were unkempt, Browns fan matters. I hope, for he hadn’t been the same this and consider Mr. Claypool’s arguments, picnic tables and barbecue grills were decaying or the sake of the new owner and season. The question is which seemed to boil down to the fact worn out and bathrooms were dirty. this new management team, whether that was entirely his that smaller governments are more re- responsibility, or was it the In the few months that Metroparks personnel that next year’s draft lifts this sponsive to their voters, and that as they teammates around him? We’ll grow they become more unresponsive. have had their hands on the properties, they’ve team into something akin to a playoff contender. see soon enough as he enters a “Mergers accomplish little, other than made improvements that are immediately notice- Because, boy, right now, ear- backfield in Indianapolis with a creating a larger bureaucracy,” he wrote, able to frequent visitors to the lakefront parks. And ly in the latest reboot, the natives are talented, athletic young quarterback. claiming that the larger size somehow if Issue 80 wins voter approval, users can expect sig- restless. A strong-armed quarterback In the meantime, fans of the Browns automatically makes them less efficient. nificant investment in the parks as they are linked to can’t move the team in an offense de- suffer yet again, and this time the pain I don’t know. It seems to me that tiny the 23,000 acres of the Emerald Necklace. signed for a strong-armed quarterback. starts earlier than ever (except for maybe communities that share borders and are Brian Zimmerman, Metroparks executive direc- The offensive line is a mess, and they that humiliating blowout loss to the duplicating services have a lot to save by trade the running back that was last Steelers in the first game at the new lake- combining. And if they don’t do it now, tor, sees the lakefront parks as furthering the eco- year’s top draft pick. front stadium). when it can be done thoughtfully, they’ll nomic development role the park system can play When those who have watched Joe Here’s hoping, for the sake of all those be forced to do it later, as state government in making Northeast Ohio an attractive place to live Banner work in previous markets say laboring in the Browns’ headquarters in continues to cut the funds flowing to them. and work. he’s not afraid to make decisive moves, Berea, and all the irate fans out there, Remember that great line from the “We’re really trying to fulfill that competitive ad- they sure weren’t kidding. The question that this team rallies, and gives us a rea- “Mr. Dirt” character from the old Mobil vantage that I think Cleveland has versus any other remains unanswered as to whether these son to watch the games. Thank goodness oil commercials: “You can pay me now, ■ industrial city in the country,” Mr. Zimmerman re- will be the right moves. for their defensive squad … or pay me later.” cently told Crain’s. The proposed 10-year, 2.7 mill levy under Issue 80 TALK ON THE WEB represents an increase from the current 1.8-mill rate, a change that would bring in $75 million a year Re: Metroparks’ embrace Re: Grocery store versus the $53 million a year the tax yields at pre- Reader responses to stories sent. Mr. Zimmerman said the money would help of the lake and blogs that appeared on: competition finance more than $100 million of capital invest- ■ We are very fortunate to have such a www.crainscleveland.com ■ Heinen’s stores are far superior to ments over the next 10 years. Those investments wonderful Metroparks system. Anyone Giant Eagle’s stores. Many Giant Eagle would include plowing at least $28 million into the who has played a Metroparks golf course $4 million to manage the operation. stores just aren’t particularly clean, and lakefront alone in the next few years. or enjoyed the many trails and sights on Problem was, the county never received their parking lots are full of trash. I was We wholeheartedly agree with Mr. Zimmerman’s the Emerald Necklace realizes that it a market study that indicated that this not at all impressed with the new “Mar- vision of pulling the Metroparks’ vast acerage north takes time, effort and money to keep it a building should be built. The people of ket District” store. The Giant Eagle at by embracing the lakefront. People connect to wa- thing of beauty. I am for the additional Cuyahoga County spent $480 million on Legacy Village is a better store to shop at. tax levy if that is what it takes to help ter, and residents of Cuyahoga County are blessed what will be a mixture of who knows — Seth Hirschfeld maintain and improve our relationship what. The politicos will always come up to have access to a big body of it in Lake Erie. The with Mother Nature. — Joe Roman Re: Alliance Startup Fund Cuyahoga and Rocky rivers and other tributaries to with a new name and hope the voters forget. — Allan Wood our region’s great lake long have formed the skele- Re: County seeks convention ■ I keep seeing these business incuba- tor-type entities in smaller communities ton of the Metroparks system; including the lake- center changes Re: Plain Dealer future front parks as part of that system only adds more and I think it’s awesome as long as they ■ jewels to the necklace. MMPI’s deal with Cleveland might ■ I understand print is dying, but Ad- are actually providing seed capital rather be the most one-sided agreement in the than just hocking some cheap office Approval of Issue 80 would add $5 a month to the vance Publications could have offered history of our city. — James Anthony the option of letting their “independent” space in a previously abandoned and tax bill of the owner of a $200,000 house. It is a rea- ■ It’s unbelievable how Cuyahoga contractors get the Monday, Tuesday cheaply refurbished building. Commu- sonable price to pay for an asset that adds so much County keeps changing the name of the and Thursday newspapers to deliver to nities need to be wary of that trap that is to the quality of life of so many in Northeast Ohio. building, what happens within the build- their customers who were willing to pay unlikely to yield the results that they are ing, and now the people who were paid extra. — James Evans looking for. — Joseph Marinucci 20130923-NEWS--9-NAT-CCI-CL_-- 9/19/2013 4:15 PM Page 1

SEPTEMBER 23 - 29, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 Fit: Smaller local companies can offer wider range of choices

continued from PAGE 3 tan City School District enacted its Mr. Silverman gives some pretty have noticed the increase in among other things — a commis- Today, Silverman’s specializes in uniform dress code in August 2007, standard advice when advising schools adopting uniform policies sion payment. clothing of another kind — school it caught the attention of most oth- schools developing uniform poli- and have jumped on the uniform “I can tell you that Schoolbelles uniforms — and it’s benefiting from er schools, Mr. Silverman said. Al- cies. bandwagon. The increased compe- has given back millions of dollars,” decisions by a rising number of though the majority of charter “We encourage people to stick tition is affecting some uniform re- Mr. Carroll said. public and private schools in the schools in the city already enforced with basic colors because those are tailers in a negative way even with Coupons targeted at specific Cleveland area to require students uniform dress codes, he said, the readily available and keep the price the increasing market size. schools help keep the relationship to outfit themselves in standard Cleveland district’s decision was a down,” he said. The most common School Uniform Center at 3734 between retailer and educator dress. landmark for a local public school choices are black, blue and khaki Pearl Road in Cleveland has noticed strong as well. Both Silverman’s “It’s a growing business for sure,” system. pants and white shirts, he said. decreased business in the last two and School Uniform Center offer said Alan Silverman, president of However, some schools opt for years, said Ahmed Paterno, co- coupons through websites of Silverman’s, which has stores at Keep it simple embroidered tops and customized owner and manager of the store. schools with uniform policies. spirit wear. Schoolbelles has a han- Mr. Paterno said he must work to 1450 Hayden Ave. in East Cleveland When schools decide to imple- Helping hand and 6601 Harvard Ave. in Cleveland. ment new uniform standards, many dle on specialty items such as these, compete with big retailers such as “The market has been growing come to specialty uniform retailers and amid competition with large Walmart and Old Navy for cus- Although prices are low at these every year.” for advice, Mr. Silverman said. He chains for standard uniform pieces, tomers. But he thinks being open uniform retailers, not all low-in- Year-round uniform suppliers of- met with both the East Cleveland Mr. Carroll has noticed an increase year round and offering coupons come families can afford them. So, ten work closely with school admin- and Cleveland school districts re- in this facet of his business. directly to schools with uniform in 1990, Mr. Silverman founded the istrators to make sure they are garding their change and commu- “Chains pretty much handle the policies during the back-to-school nonprofit organization Uniforms stocked properly with clothing that nicated with Akron as well. bread and butter,” he said. season helps keep him afloat. for Kids to help outfit these stu- fits the schools’ uniform policies. Rojeana Howell-Curtis, academ- Schoolbelles also offers a wider Mr. Carroll has seen the rise in dents. The program is run solely by Consequently, a school’s adminis- ic superintendent for the Cleveland range of uniform sizes than most competition at Schoolbelles, too. volunteers and donations; howev- trators can be the most important district, said Mr. Silverman was es- retailers, Mr. Carroll said. “In the past two years our sales er, Mr. Silverman matches each do- connection between these retailers sential in easing the transition into “We still manufacture about half have stalled due to competition in nation dollar for dollar. and their customers. uniforms for its 107 schools. of our girls’ items in our factory the market,” he said. “It’s difficult The need for the program only “The principals introduce us to “He almost had a one-stop shop,” right here in Cleveland,” Mr. Carroll for a company like mine to com- has grown throughout the years, he the parents, if you will,” said Bruce Ms. Howell-Curtis said. Silverman’s said. The rest of the clothes are pete with large chain retailers be- said. Carroll, owner and president of combined a package of two shirts, made by Schoolbelles, but in the cause of their buying power.” “CMSD has a waiting list of over Schoolbelles, a Cleveland uniform two pairs of pants and a belt for less Dominican Republic. However, Schoolbelles has been a 700 people who are in poverty and maker and retailer that has been in than $50 to start students off, she “When we make a commitment Cleveland staple for 57 years, Mr. can’t afford school supplies,” Mr. existence since 1956. said, which cut down on student ex- to a school, we make a commit- Carroll said, and it knows how to Silverman said. When the Cleveland Metropoli- cuses for not sticking to the code. ment to outfit every child in that compete with the chains.One way is Silverman’s also offers a trade-in school,” Mr. Carroll said. “We by creating what Mr. Carroll called uniform program. Families can promise that we can fit every single “wholesaling partnerships” with trade in uniforms in good condition kid.” various schools, in which School- in return for a discount of up to $6 Davids vs. Goliaths belles allows schools to buy the union a new purchase. The old uniforms at wholesale prices and sell forms are cleaned and mended and TravelCenters CEO: The increased demand for adult them directly to students at a profit. then donated. sizes to outfit high school students Although the wholesale program Although parents have their has brought an entire new group of has the potential to benefit schools choice of where to buy the mandat- customers to these year-round uni- financially, Mr. Carroll prefers to ed uniforms, Ms. Howell-Curtis of ‘Shale revolution’ is form retailers, Mr. Silverman handle the logistics of the sales the Cleveland city schools said she agrees. through Schoolbelles, allowing the believes everyone is reaping the “In the last five years, four high school districts to concentrate on benefits of being a uniform district. schools have gone to adult sizes,” educating. As an alternative to That’s especially true of the stu- good for trucking he said, which has been a boon to wholesaling, Schoolbelles will give dents. sales. schools that qualify — based on a “It looks like they’re ready for Tom O’Brien sees what he National chains such as Walmart, minimum level of sales and com- school, they’re ready for learning,” Target, Kmart and TJ Maxx also mitment to the Schoolbelles brand, ■ termed “the shale revolution” com- ON THE WEB Story from: she said. ing to the trucking business, and in- www.crainscleveland.com dicated his company and many others are intent on participating in it. Mr. O’Brien, president and CEO of eign-based, pollutant-heavy fuels TravelCenters of America LLC in are here today and here to stay.” Westlake, made his observations in According to Mr. O’Brien, many his keynote speech Wednesday large trucking fleets “are actively morning, Sept. 18, at the Great Lakes evaluating, testing or converting Truck Expo at the Cleveland Con- their fleets or portions of their fleets.” vention Center in downtown Cleve- “Some studies have predicted Can your business land. He spoke at length about the adoption rates of 15% of new Class impact that natural gas exploration 8 heavy-duty truck purchases over accept any payment in the Utica and Marcellus shale re- the next three to five years, and as gions of Ohio and Pennsylvania high as 25% by 2020,” Mr. O’Brien could have on the nation, the truck- said. “That means we could have type at any time? ing industry and TravelCenters. well over half a million Class 8 “The shale revolution has created trucks running over the road on Your business can beneﬁ t from a new opportunity to meaningfully natural gas in well before the end of Key Merchant Services, offering secure grow the U.S. economy,” the head this decade. Some predict that nat- of the operator of highway travel ural gas vehicles could ultimately payment solutions, and up to a centers told his audience. “I believe reach 40% of the heavy-duty truck $100* rebate for opening an account. that this is, this could be, the largest market.” single advantage that the U.S. has Mr. O’Brien noted that Travel- Go to key.com/100 for details. enjoyed in the last century.” Centers and energy giant Shell an- Mr. O’Brien said growing de- nounced earlier this year a plan to mand for natural gas by the trans- create a nationwide natural gas re- portation sector “seems surely to fueling and repair network. Shell mean that at the very least, natural will distribute liquefied natural gas, gas, particularly liquid natural gas, or LNG, at up to 100 of its TA and is likely to be a true alternative, a Petro locations. true option for fueling alongside “We plan to create at least two diesel, in the coming years.” LNG fueling lanes at each of these “And now it comes to all of us to sites,” Mr. O’Brien said, noting that it figure out how to best bring this re- is “not an inexpensive undertaking.” source to bear positively,” he said. “The first couple of LNG lanes at “It is now up to us — the equipment a site will cost about six to seven manufacturers; all of those in the times the cost of a diesel lane,” Mr. infrastructure and distribution are- O’Brien said. He said adding incre- na; all of the companies and the dri- mental lanes “costs less per lane, of vers who are actually going to use course, but, on average, today’s ap- alternative fuels — to work together ples-to-apples comparison is that to use our new advantage wisely. the cost of a natural gas lane is *Offer subject to underwriting and credit approval. Services subject to the terms and conditions of the service agreement. Only new Key Merchant This is the latest in a long, historical about twice the cost of a diesel Services accounts are eligible. All rebated items will be refunded on your ﬁ rst monthly statement from Key Merchant Services once the new string of U.S. competitive advan- lane.” merchant account is activated. Offer valid 9/22/13 - 11/1/13. ©2013 KeyCorp. KeyBank is Member FDIC. tages, and future alternatives to for- — Mark Dodosh

PL_137314_2CNpr_KMS_6x6.indd 1 9/12/13 3:04 PM 20130923-NEWS--10-NAT-CCI-CL_-- 9/19/2013 3:20 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 23 - 29, 2013

GOING PLACES JOB CHANGES DISTRIBUTION ASW GLOBAL: Charles Cline to national director, CPG/Retail Services. ENTERTAINMENT Bingham Bernier Greenhill Coffin Donzelli Sent Nauer Fletcher HORSESHOE CASINO CLEVELAND: Donna Hogan to vice attorney. president, finance. MANUFACTURING TENABLE PROTECTIVE TIMKEN CO.: Mark D. Ritucci to FINANCE SERVICES: Cynthia Bendula to regional manager, commercial administrative manager. FIFTH THIRD BANK, vehicle aftermarket sales, eastern NORTHEASTERN OHIO: Anne E. regions of the U.S. and Canada. Bingham to private banker, Fifth STAFFING Third Private Bank. MARKETING AREA TEMPS INC.: Joseph Yaro, Gecewich Goberish Lewis Bendula Al Langford, Donna McDonald FINANCIAL SERVICE THINK MEDIA STUDIOS: and Alesha Tapp to sales Kasey Drzazga to camera representatives; Tom Carder, AXA ADVISORS: Paul Bernier to senior retirement plan specialist; operator/editor. Jamie Neufer, Carmen regional vice president; Ryan Joseph Granzier to financial INSURANCE Maldonado and Derond Dozier to Greenhill and Robert Coffin to advisor. H.C. MURRAY GROUP: Emery M. SERVICE sales coordinators. financial consultants; Ryan Donzelli SS&G: Michael Demko to senior Szekely to commercial lines to financial professional. manager; Irene Ott to personal lines SAFEGUARD PROPERTIES: Amy associate and Jonathon Mathoslah Nauer to assistant vice president, KEYBANC CAPITAL MARKETS manager; Joyce Nesbitt Rogers to UTILITY to associate, assurance services; property preservation and REO INC.: George Sent to director, operations manager; Wendy FIRSTENERGY NUCLEAR Lindsey Lakis to senior operations; Holly Fletcher to Mergers & Acquisitions Group. Fandrich to customer serivce OPERATING CO.: Ernest J. administrative assistant; Margaret director, client relations; Brian PAYTIME INTEGRATED PAYROLL Jordan to associate, marketing. representative. Harkness to site vice president, Gecewich to director, field quality Perry Nuclear Power Plant. SOLUTIONS: Dustin Small to vice control and serivce quality president, sales. HEALTH CARE LEGAL assurance; Steve Goberish to REHMANN: Susan Morris to client METROHEALTH SYSTEM: Karim MCDONALD HOPKINS: Mary I. director, application development, Send information for Going Places service manager; Bill Boyer to Botros to chief strategy officer. Edquist to associate. vendor systems; Robert Lewis to to [email protected]. Cleveland plant could be a key for ArcelorMittal

By RACHEL ABBEY McCAFFERTY [email protected] ON THE WEB Story from: www.crainscleveland.com ArcelorMittal believes in Cleve- land. The Luxembourg-based steel- The Cleveland plant now has maker is investing in its Cleveland about 1,850 employees, 350 of plant, an operation that produces a whom are salaried, a big change small, but increasingly important, from the recession when the plant part of ArcelorMittal’s steel output. was basically idled. About 150 of Louis Schorsch, a member of the those employees were hired in the company’s group management last year, when the company board, said the Cleveland plant restarted its West Side steel shop. ships about 3% of the nearly 100 Mr. Schorsch said the Cleveland million tons of steel the company plant has the highest productivity in ships each year. But ArcelorMittal is all of North America — 1.15 worker positioning the plant as the place hours per ton produced, to be exact, where new, advanced high-strength said Eric Hauge, vice president and steel will be piloted and produced. general manager in Cleveland. The steel will serve the automotive Much of that product goes to the industry, where new, more strin- automotive market, and Mr. Hauge Cox Business helped Liberty Market keep more gent fuel efficiency and emission said about half stays in Ohio. standards have led to a need for ArcelorMittal is making other in- than their produce and bread 100% local. stronger, lighter steel. vestments in the Cleveland plant, Mr. Schorsch spoke about the in- too. Earlier this month, the plant took vestments during a City Club Busi- down one of its blast furnaces for $55 ness Leaders event at the Aloft million of updates. The furnace last Cleveland Downtown hotel last was updated about 24 years ago. Wednesday evening, Sept. 18. He “It’s a pretty big event,” Mr. spoke with Crain’s about the issues Schorsch said, noting that it’s one on Wednesday afternoon. that demonstrates the company’s The Cleveland plant has a hot-dip dedication to the plant. galvanizing line that is critical to Steel is the incumbent material in producing advanced, high-strength the auto industry, Mr. Schorsch said, steel. Mr. Schorsch said the compa- but recent regulations regarding fuel ny has invested about $70 million in economy and carbon dioxide emis- that galvanizing line in the past sions have opened the doors for eight to 10 years, and it is on the companies to consider other materi- path to approve spending another als and for steelmakers to scramble $25 million in improvements on to meet the challenge. Of ArcelorMit- that line in the next year and a half. tal’s 1,300 to 1,500 research and de- The Cleveland plant wasn’t development employees, about 400 are signed to make this type of steel — dedicated to working on these new 99 the galvanizing line was originally a products, he said. $ ŏ Internet mo* heat-treating line — but all the nec- Despite recent softening in the & Phone essary parts were there, Mr. Schorsch market, Mr. Schorsch sounds confi- 79 said. As demand grows for advanced, dent in the future of steel. There is usually seasonal weakness in the coxbusiness.com high-strength steel, ArcelorMittal can *Offer valid until 9/30/13. Minimum service term, equipment, installation, fees, taxes, and other add capacity to produce it in other fourth quarter, he said, but he feels restrictions may apply. See coxbusiness.com. © 2013 Cox Communications, Inc. All rights reserved. 1-866-791-2688 parts of the world. But for now, good about inventory levels head- Cleveland will be critical. ing into next year. ■ 20130923-NEWS--11-NAT-CCI-CL_-- 9/19/2013 3:49 PM Page 1

SEPTEMBER 23 - 29, 2013 CRAIN’S CLEVELAND BUSINESS 11

INSIDE 12-13 A LOOK AT SOME NOTABLE GREEN SPACES. GREEN CONSTRUCTION

JENNIFER KEIRN Bert Diehl, left, the director of facilities management, is shown on Lakeland Community College’s green roof with Tim Hollo, territory manager for The Garland Co. The Cleveland company installed Lakeland’s roof. IT’S A LASTING VIEW Green roofs are gaining in popularity, easy to maintain and have sustainability benefits

By JENNIFER KEIRN [email protected] GREEN CONSTRUCTION: BY THE NUMBERS

hen Lakeland Community ■ Nearly half billion in GDP College first considered a of greenhouse ■ Support green roof in 2008, Bert Diehl gas emissions in more than 7.9 heard some grumbling from Northeast Ohio million jobs theW maintenance crew. come from ■ Provide “They said, ‘Are we going to be weed- ing this thing?’ ” said Mr. Diehl, the col- residential and $396 billion in lege’s director of facilities management. commercial labor earnings buildings, primari- Source: U.S. “It was an opportunity to educate them, CONTRIBUTED PHOTO ly from burning Green Building ‘You don’t have to do a thing.’ ” A rendering of the vegetative roof that is fossil fuels for lighting, heating and Council, “Green Jobs Study” That promise has held true. Over five being installed at Case Western Reserve cooling. years, the roof’s sedum, a hardy orna- University’s Tinkham Veale University Center. Source: GreenCityBlueLake mental ground cover, has never been wa- ■ Worldwide, 51% of architects, ideal,” he said. “It was a nice opportunity tered and rarely weeded or dead-headed. engineers, contractors, owners and to do something that would be part of our From 2000 to 2008, the green The green roof atop Lakeland’s S consultants anticipate that more than mission to educate the folks of the future.” construction market has: Building — the first such roof in Lake 60% of their work will be green by The installation of green roofs — also ■ Generated $173 billion in GDP County — is helping to lengthen the life 2015, up from 28% of firms in 2012. called living or vegetative roofs — is on ■ Supported more than 2.4 million of underlying roofing materials, he said, ■ The U.S. green building market the rise across the country. jobs and it is adding energy efficiency to the has grown from 2% in 2005 to 44% According to nonprofit Green Roofs for ■ Provided $123 billion in labor building. Adjacent to a science lab and in 2012, according to a McGraw-Hill rooftop greenhouse, it has become an ex- Healthy Cities, the North American green earnings roof industry grew 24% between 2011 and Construction analysis of nonresiden- tension of the curriculum. From 2009–2013, it is forecasted tial construction project starts data. Best yet, added Mr. Diehl, it’s become 2012. Its members reported 982 new that green construction will: Source: McGraw-Hill Construc- a visible sign of the college’s overall sus- green roof projects in 2012, totaling near- ■ Generate an additional $554 tion, SmartMarket Report, 2013 tainability strategy. ly 5.6 million square feet. “The location was ideal, the size was See VIEW Page 12 20130923-NEWS--12-NAT-CCI-CL_-- 9/19/2013 3:21 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS GREEN CONSTRUCTION SEPTEMBER 23 - 29, 2013 GREEN SPACES: CLEVELAND STATE UNIVERSITY

n its efforts to work toward a maintain and efficient systems run sustainable future, Cleveland DOLLARS AND CENTS cleaner. State University says it is The Julka Hall project, for exam- ■ COSTS: CSU project manager poised to save $60 million ple, reduced water usage by 30% Tania Anochin estimated construc- Iover the next 10 years due to ener- per year, earned two years of tion costs are about 5% to 10% gy-friendly renovations and con- wind-power credits and used 30% higher on the front end. struction on its campus. recycled content in its building ■ BENEFITS: Cost savings on CSU has three buildings that products. Euclid Commons will the back end will come out to have attained LEED (Leadership in achieve energy savings of at least between 10% and 20% annually Energy and Environmental Design) 29% per year through energy-effi- certification from the U.S. Green because the buildings are easier to cient lighting systems and minimum thresholds for cooling, air Building Council, and a fourth that maintain and efficient systems run circulation and filtration systems. is pending certification: cleaner. A combination of low-flow ■ Julka Hall, home to the Col- bathroom faucets, dual-flush toi- lege of Education and Human Ser- only recently embraced the green lets and low-flow showerheads vices, and the School of Nursing and sustainable movement. and kitchen sinks helped reduce (LEED Gold). While she said there are a little water usage by more than 30% at ■ Recreation center (LEED certi- more costs associated with going the residence hall. fied). green, the payback in energy effi- “Those green initiatives are a ■ Euclid Commons residence ciency and savings on the back end CONTRIBUTED PHOTO part of the strategy for the design hall (LEED Silver). comes within five to 15 years, de- Cleveland State has three buildings that have achieved LEED status, and a fourth from the very beginning, from the ■ Student center (pending). pending on the building and sys- that is pending. Shown here is the recreation center’s green roof. site to the actual operation of the CSU project manager Tania tems. keen interest in the initiative efits are not just money — it’s the building,” Ms. Anochin said. “We’re Anochin said the university has Ms. Anochin said it’s too early to through a Campus Sustainability environment and how we treat our also looking at being carbon neu- been working to update campus gauge all the benefits of going green, Coalition, which looks at all aspects planet,” Ms. Anochin said. “There tral in the next 10 to 15 years.” buildings for the last decade, but but students and faculty showed a of developing a sustainable campus. is a cost savings overall in going She said the university is reuti- The university is replacing older green and sustainable. It’s a little lizing as much as it can from older equipment with more energy-effi- bit higher up-front cost in the be- buildings and giving them new life cient systems, including a geother- ginning, but the payback is there.” through green renovation. mal system at the administration She estimated construction Mather Mansion, Fenn Tower center, the installation of solar costs are about 5% to 10% higher and the Campus Safety Building Profitability panels on some buildings and a on the front end, but the cost sav- are among those buildings modi- 7,000-square-foot green roof on ings on the back end will come out fied and updated through sustain- Danger to employees, lost productivity, damaged the Recreation Center. to between 10% and 20% annually able practices. inventory, damaged equipment from a leaking “I think in the long run the ben- because the buildings are easier to — Kimberly Bonvissuto roof? Carey Roofing Corp. has eliminated these View: Roofs are like a ‘giant sponge’ problems for our customers with practical continued from PAGE 11 University Hospitals and Cleve- found, it doesn’t take a green solutions since 1946. Method growing on region land State University all have green thumb to make a green roof work roofs, and Case Western Reserve in Northeast Ohio. 216•881•1999 While Northeast Ohio lags University will install 30,000 At Corso’s Perennials in San- www.careyroofing.com behind the green roof acceptance square feet of vegetative roof on its dusky, a demonstration green roof of other major cities, there have under-construction Tinkham gives architects, contractors and CAREY founded in 1946 been notable local investments into Roofing Corp. MEMBER: National Roofing Contractors Association Veale University Center. roofers a look at the LiveRoof, a the technology. “When you think about green system made of pre-planted trays. Nordson Corp. in Westlake, construction, you think recycled “We try to abuse it as much as materials, low VOCs (volatile organ- we can,” said president Gus Corso, ic compounds), energy efficiency, whose three decades-old green- all things that are hard to see,” said house is the exclusive LiveRoof Brian Lambert, director of products grower for Ohio and Pittsburgh. and systems for Cleveland roofing “All of them are excited by how manufacturer The Garland Co., simple it is to install and keep which installed Lakeland’s roof. “A growing.” green roof stamps a project as a visual representation of what the More green for green building owner is trying to do.” Mr. Corso got into the green roof Mr. Lambert likens a green roof businesses five years ago, and esti- to a “giant sponge” that minimizes mated that LiveRoof installations storm water run-off in addition to are now 15% of his business, with the added energy efficiency and about 10 installations each year roofing durability benefits. A green ranging from 300 square feet to roof also reduces the heat signa- 30,000 square feet. ture of a building and contributes Watering may only be needed in points toward LEED (Leadership in periods of prolonged drought, said Energy and Environmental Design) Mr. Corso, who recommends that THE ART OF PROBLEM SOLVING certification. building owners weed periodically “There are sustainability bene- and use a slow-release fertilizer fits, but there’s also a ‘cool’ factor,” once a year. Providing creative legal solutions for real estate matters said Bill Doty of Bedford-based Green roofs can be installed on Doty + Miller Architects, which has existing buildings provided the incorporated green roofs into five roof can bear the weight, which recent projects. “One of the best Mr. Corso said is just 15 pounds benefits is the biophilia response, per square foot for the shallowest the ability to integrate nature into LiveRoof system. our buildings.” Mr. Lambert usually tells clients Aesthetics played a role in Case to expect to pay double for a green Western Reserve’s decision to add roof, depending on how elaborate a green roof to its two-story uni- they become. That was the case at versity center, which is adjacent to Lakeland, where Mr. Diehl said the the wide open spaces of Freiberger cost totaled $150,000. Field, and it is on track to achieve Solar roofs can actually be less LEED Gold status. expensive, said Mr. Doty, and “It’s a lower building surround- white reflective roofs also can ed by higher buildings, so a lot of The Real Estate Attorneys of Leasing | Development | Real Estate Finance | achieve LEED points. attention was paid to how the roof But Mr. Doty said a traditional Tax Credit Transactions | Land Use & Zoning | would incorporate into the sur- calculation of ROI shouldn’t be the Urban & Historic Redevelopment | rounding green space,” said deciding factor in a green roof de- Joanne Brown, Case Western Re- cision. Cleveland | 216.781.1212 | walterhav.com Tech, Multi-Family & Shopping Centers serve’s director of planning, design “It has to be part of an integrat- and construction. ed sustainable philosophy.” he As Lakeland’s maintenance crew said. ■ 20130923-NEWS--13-NAT-CCI-CL_-- 9/19/2013 3:48 PM Page 1

SEPTEMBER 23 - 29, 2013 GREEN CONSTRUCTION CRAIN’S CLEVELAND BUSINESS 13 GREEN SPACES: ROCKY RIVER GREEN HOME

DOLLARS AND CENTS

■ COSTS: Beverly Maloney-Fis- chback estimates a green remodel costs about 15% more than a traditional remodel. There are some aspects of going green, however, that can be cheaper or the same price as the traditional route. ■ BENEFITS: The financial bene- Send us your fits of green building include lower energy, waste disposal and water costs, as well as lower maintenance sustainability costs since the systems run cleaner. For example, 12 to 14 solar nominations panels on the home are expected to achieve an average 20% overall Crain’s Cleveland Business in reduction in electricity year-round. 2013 is continuing its series of “Who to Watch” sections. CONTRIBUTED PHOTOS or years Beverly Maloney- The next section, slated for The Rocky River Green Home owned by Beverly Maloney-Fischback and her Fischback and her hus- publication on Nov. 25, will husband, David Fischback. For more photos go to www.CrainsCleveland.com. are another low-cost item at about band, David Fischback, $150, dispersing heat on upper highlight up-and-comers in lived around the corner founder and publisher of Organic Energy Star appliances, LED light- levels and lowering cooling bills. Northeast Ohio’s sustainability Ffrom a small, dated, poorly built Spa Magazine. “It has a lake view, ing, bamb oo flooring, eco-friend- efforts. A rainwater harvesting system Rocky River bungalow from the it’s on a great corner on a beauti- ly plumbing fixtures and an ener- should irrigate 75% to 95% of the If you think you know who will 1950s. ful street, and there are century gy-efficient monitoring system. lawn, and the 12 to 14 solar panels be among those leading But they were taken with the trees that sealed the deal. It’s like The financial benefits of green, on the home are expected to Northeast Ohio’s green initiatives half-acre lot, which Mrs. Maloney- living in a tree house. From the or sustainable, building include achieve an average 20% overall re- of the future, drop an email to Fischback described as a “beauti- master bathroom you can go out lower energy, waste disposal and duction in electricity year-round. sections editor Amy Ann ful oasis with a lot of natural on the balcony and touch the tree water costs, as well as lower main- Mrs. Maloney-Fischback said Stoessel, [email protected], light.” The house had been for sale and climb down it.” tenance costs since the systems it’s more challenging to do a green or call 216-771-5155. on and off over five years when the And so began a year of renova- run cleaner. And she said the costs renovation on an existing home Send in suggestions no later Fischbacks finally decided it was tions to create a green-renovated of going green are on par with tra- than a new green build. She esti- than noon on Monday, Oct. 21. the perfect opportunity to reno- luxury home. Mrs. Maloney-Fis- ditional construction. mates a green remodel costs about In addition, an event scheduled chback and Mr. Fischback, presi- Some aspects of going green, vate the bones of the house into 15% more than a traditional re- for 7 to 10 a.m. Dec. 11 at the their dream home — or what has dent of Cleveland-based construc- she argues, are actually cheaper or model, although she declined to CSU student center will help to now become known as the Rocky tion firm The Krill Co., used their the same price as the traditional give the total cost for the project. highlight those included in the River Green Home. industry contacts to include route. An instant hot water tank, But the payoff, she said is a section. For information, go to “The way the sunsets pour into green-build design elements, in- for instance, costs about the same healthy, green home and an in- that house, we knew it was some- cluding solar panels, gray water as a regular hot water tank, but the vestment that the couple expects www.CrainsCleveland.com/ thing we’d love to work with,” said recycling, rainwater harvesting, a payback is instantaneous with to recoup in about eight years. WhotoWatch. Mrs. Maloney-Fischback, CEO, high-efficiency heat pump system, lower energy use. Solar attic fans — Kimberly Bonvissuto

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14 CRAIN’S CLEVELAND BUSINESS GREEN CONSTRUCTION SEPTEMBER 23 - 29, 2013 Ohio among nation’s best in sustainable projects another 97,000 LEED-registered retrofit market in the next three Turner Construction survey says the difficulty “What it comes down to is projects, according to information years — representing up to $18 bil- that green building from the Northeast Ohio chapter lion in economic activity. In 2011, of obtaining LEED certification has resulted in of the U.S. Green Building Council. green retrofit represented just designs are becoming the The local chapter reports that about 10% of the market. fewer companies seeking the status, however standard.” Northeast Ohio has 180 LEED-certi- One reason for the growth in the fied projects, with more than 340 green retrofit market is the tax By DANIEL J. McGRAW ular — and most difficult to attain – Matt Heisey additional Northeast Ohio projects breaks and government grants that [email protected] — of green building standards principal, Vocon registered as pursuing certification. are available. evaluated by a third party. According to the U.S. Green Joe Paterniti, a senior banker hile companies are That figure is down from 54% in green building designs are becom- Building Council, Ohio ranks 11th with KeyBank specializing in green taking on more envi- the 2010 survey, and 61% in 2008. ing the standard, and the cost of in the nation with 1,375 commer- and sustainable projects lending, ronmentally sustain- “Cost, time and the difficulty of doing designs that can be certified cial buildings that are LEED recog- said retrofitting an existing struc- able building projects the certification process are the under the LEED system are minor nized, accounting for 133 million ture with more environmentally thanW ever, the pursuit of having leading reasons for the declining cost increases,” Mr. Heisey said. square feet of space. (The state is friendly designs “make the build- those projects certified as meeting commitment to LEED,” the study “But the decline in the operat- No. 1 in the nation for LEED ing fiscally stronger from both an Leadership in Energy and Environ- reported. ing costs for energy consumption, school projects: 549 education operations standpoint and its fu- mental Design, or LEED, stan- Still, LEED certification has val- the real impact that a green-de- building projects — K-12 and high- ture value in the sales market.” dards has declined slightly on a ue, according to those in the local signed building can do for the er education — are LEED regis- Mr. Paterniti, vice chairman of national level. building industry, and pursuit of it overall environment and the tered or certified.) the Northeast Ohio chapter of the In some respects, that trend remains strong in Northeast Ohio, health of the employees who work Attainment of LEED certification U.S. Green Building Council, said may arise because green building they say. in such buildings, more than make in Ohio has been on the rise. In tax breaks and rebates from energy standards that once were novel “We are seeing an uptick in our up for any small higher costs,” he 2006, less than 1 million square providers can make the retrofit concepts have been integrated clients that are seeking LEED certi- said. feet of space in Ohio was newly plans more financially viable. into the marketplace as core de- fication for projects we do for By the numbers certified as gold or silver LEED de- He cited a recent project in sign guidelines. them, whether they are new con- sign; in 2012, more than 9 million which a building owner wanted to Turner Construction Co.’s latest struction projects or retrofitting It is difficult to find consistent square feet in Ohio was certified to redo the lighting in his building at survey, in 2012, of 700 company older buildings to have them up- statistics for LEED-certified build- gold or silver standards. a cost of $46,000 for the upgrade. executives found that 48% said it ings over time as the standards graded with a more environmen- Susann Geithner, director of Under state law, the building own- was extremely or very likely that have changed, and the certifica- tally friendly design,” said Matt sustainability for HSB Architects er qualified for a $7,800 rebate their company would seek LEED tion process only started in 1999. Heisey, a principal with Vocon, an and Engineers in Cleveland, said from First Energy for reduction in certification from the U.S. Green As of May 2013, there are ap- architectural and design firm in “many companies get the LEED electricity usage that the new light- Building Council, which is consid- proximately 44,000 LEED-certified Cleveland. designation and use it as a strategy ing would provide. ered by many to be the most pop- projects in the United States, with “What it comes down to is that in their commitment to sustain- “I think everyone would agree ability and as an advantage to mar- that reducing use of the utilities ket their company.” and to have design standards that “Sustainability in design does encourage local products being impact the bottom line,” Ms. Gei- used are good goals to have,” Mr. thner said. “There are the energy Paterniti said. “But the standards Issue date: November 11 savings, but there is also the em- can change, and the number of ployee attitude that helps retain grants and rebates available can be Ad close: October 14 them, and the perception of the different in every project, so it is Ad materials due: October 21 company by their customers. The good to meet with architects and LEED certification is also a desig- construction companies and nation that the building has all the bankers to find out what options best of the current green design are available.” ESTATE standards, which will make the And while getting a rubber structure more valuable in the stamp of approval on the project future.” may be an outcome, it may not necessarily be the ultimate goal. Retrofitting is in “Getting LEED certification may planning The portion of the green con- well be a part of that process for In partnership with the Estate Planning Council of Cleveland struction market that is growing many projects,” Mr. Paterniti said. steadily is the retrofitting of exist- “But on a basic level, going for the ing buildings to incorporate green LEED standards is a good business Join this List of Prestigious Advertisers standards into rehab. investment in most cases, because According to a report from Mc- of the reduction in operating costs Graw-Hill, green retrofits will grow over time and ensuring the value Meaden & Moore Fairway Wealth Management to a third of the overall commercial of that property in the future.” ■ Taft LLC NE OHIO BUILDINGS RECEIVING LEED STATUS IN 2013 BakerHostetler Benesch ■ Austen BioInnovation Institute, Akron — New construction, Silver Meyers, Roman, Friedberg, & ■ Western Reserve K-12 Campus, Berlin Center — Schools, Gold Glenmede ■ Medline, Canton — New Construction, Certified Lewis ■ Merilee Marshall residence, Chagrin Falls — Homes, Platinum Howard Wershbale & Co ■ CSU Euclid Avenue housing, Cleveland — New construction, Silver ■ CSU education and human services building, Cleveland — New Tucker Ellis LLP construction, Gold Cornerstone Consulting ■ Howard M. Metzenbaum U.S. Courthouse, Cleveland — Existing American Endowment buildings, Certified American Heart Association ■ KeyBank district office, Cleveland — Commercial interiors, Silver Foundation ■ mbi | k2m, Cleveland — New construction, Certified Ulmer & Berne LLP ■ NASA Glenn warehouse 351, Cleveland — New construction, Gold Wickens, Herzer, Panza, Cook & ■ PNC Fairfax Connection, Cleveland — New construction, Silver ■ Seidman Cancer Center, University Hospitals, Cleveland — New University Hospitals Batista Co construction, Certified ■ Van Auken Akins Architects, Cleveland — Commercial interiors, Certified Stout Risius Ross ■ YWCA Independence Place, Cleveland — New construction, Silver Interested in writing an article in ■ Marymount Hospital surgical expansion, Garfield Heights — New Spero Smith Crain’s Cleveland Bussiness? construction, Gold Purchase an ad in the section and ■ Geneva Middle School, Geneva — Schools, Silver ■ Platt R. Spencer Elementary, Geneva — Schools, Silver submit an article. ■ SKF Solution Factory, Highland Heights — Commercial interiors, Gold ■ Maple Heights new elementary, Maple Heights — Schools, Gold ■ Milkovich Middle School, Maple Heights — Schools, Gold Include your succession strategies in this custom-published section with these leading advisors: ■ NOSC Complex Armed Forces Center, North Canton — New Contact Nicole Mastrangelo 216-771-5158 or [email protected] construction, Silver ■ De Nora Tech, Painesville — Commercial interiors, Silver ■ Heritage Landing, Streetsboro — Commercial interiors, Certified ■ Hospice House, Westlake — New Construction, Gold Source: Northeast Ohio chapter of the U.S. Green Building Council 20130923-NEWS--15-NAT-CCI-CL_-- 9/20/2013 1:23 PM Page 1

SEPTEMBER 23 - 29, 2013 GREEN CONSTRUCTION CRAIN’S CLEVELAND BUSINESS 15

Builders and homeowners are SAME PAYMENT, $11,825 MORE HOME ENERGY STAR seeing the light on efficiency PRINCIPAL, INTEREST AND ENERGY = $1,396

a lower HERS score,” he said. “This FirstEnergy incentive program has paid helps us sell houses and is a sales tool to help educate the consumer almost $1.4 million to companies that on why our house is better than the next guy down the street.” have constructed Energy Star homes The sweet spot Loan amount: $239,990; Estimated By CHRISSY KADLECK Matt Berges has specialized in monthly payments: principal and interest, [email protected] “What happens when a building high-performance homes $1,216; electric, $126; heating, $53 builder doesn’t build since 2000. His Cleveland company, FirstEnergy Corp. incen- Berges LLC, does an average of four BUILT TO CODE tive program is aiming to Energy Star is they are projects a year — two new con- save 10,113 megawatt effectively shutting struction and two renovations. He PRINCIPAL, INTEREST AND ENERGY = $1,396 hours by the end of 2015 themselves out of a participates in the FirstEnergy pro- whileA illuminating to builders the gram and received the maximum quarter of the market, edge they gain in the marketplace incentive check of $1,800 apiece. by building energy-efficient homes. which is probably not a (The cap recently was lifted.) Nearly 2,100 homes have been good strategy.” “It’s always been frustrating that there is very little incentive for build- built and have qualified for incen- – Rob Shearer tives through the Akron-based util- ing efficiently. The rebate and incen- coordinator of FirstEnergy’s Ohio tive is so great for solar and geother- ity’s Ohio Energy Efficient New Energy Efficient New Homes mal and the widgets, but there have Homes program since its inception program Loan amount: $228,165; Estimated at the end of 2011. been so few initiatives to really en- monthly payments: principal and interest, That figure translates to almost Energy Star home. And a study courage you to push the envelope $1,156; electric, $162; heating, $78 $1.4 million paid in incentives to from the North Carolina Energy Ef- on efficiency,” he said. “To finally have some credits that focused on the builders who constructed En- ficiency Alliance showed that En- Note: All calculations are for a 30-year fixed mortgage with a 4.50% APR; conservation not production that ergy Star homes built in the areas ergy Star homes not only fetch Source: Performance Systems Development. was a thrill. It sort of offsets the up- served by its three companies — high prices, they sell 89 days faster grade costs for some of the low- Toledo Edison, Ohio Edison and than homes built to code in the hanging-fruit efficiency items.” The Illuminating Co., said Chris Raleigh-Durham area. Mr. Berges said he uses energy Eck, spokesman for FirstEnergy, “Homebuyers want that sticker, modeling to demonstrate the sav- which has 1.8 million residential they want that certification,” Mr. Customized Contractor’s ings on utility bills. customers in the Buckeye State. Shearer said. “What happens when “That’s how I sell my customer Insurance Packages over “The idea behind the program is a builder doesn’t build Energy Star on this. I tell them, ‘Don’t just do •General Contractors•Home Builders/Contractors that builders can build homes that is they are effectively shutting 40 this because I’m obsessed with effi- years of service are Energy Star compliant, and themselves out of a quarter of the •Excavation Contractors•Concrete Contractors ciency, do this because this report those homes will be more efficient market, which is probably not a shows how your house will perform •HVAC Contractors•Plumbing Contractors than homes that are just built to good strategy.” code,” said Mr. Eck, adding that if we do it to code and this report All Contractor’s Bonding Needs Mandated in 2008 by Ohio Sen- shows how your house will perform the homes in the program have to ate Bill 221, this FirstEnergy pro- be at least 15% more efficient than using these specs,’” he said. Chardon, Chagrin Falls, Cuyahoga Falls, Willoughby gram targeted to builders is one of “Most people, when they see the homes built to code. “And they will many offered by the utility to re- 1-800-437-9467 be more efficient for the home- energy projection, it’s a no brainer to duce usage and peak demand for find the sweet spot — the balance of Donald R. Yert, President & Bradley D. Yert, Executive VP owners who will enjoy the efficien- electricity, Mr. Eck said. email: [email protected] cies built into their home for many efficiency and affordability.” ■ “Since January 2013, 2,072 MWh years into the future.” (megawatt hours) have been Energy Star is a government- saved, so it’s basically on track to backed program established in reach its goal, with roughly 3,300 1992 by the U.S. Environmental MWh per year saved,” he said. The Protection Agency to help business- incentive for builders averages es and individuals save money and $657 per home, which includes a protect the environment through $400 base per home plus an addi- the adoption of energy-efficient tional incentive at 10 cents per products, practices and services. kilowatt hour saved annually. Think effective insulation, a Parkview Homes is one of the 72 tightly sealed thermal home enve- participating builders in the pro- lope, highly efficient heating and gram. The family-run business cooling equipment, controlled ventilation, windows with ad- committed four years ago to build vanced technologies and protec- exclusively energy-efficient homes tive coatings, high-value insulation as a way to differentiate itself in systems for floors, walls and attics, the marketplace, said Roger Puzzi- as well as Energy Star appliances, tiello, company president. fixtures and lighting. “The house that we are building National studies show with sta- now is so much more energy effi- tistical significance that not only cient,” said Mr. Puzzitiello, whose do buyers want an energy-effi- company is on pace to sell 60 cient, Energy Star-certified home, homes this year, up from 45 in they are willing to pay for it. 2012. “We were one of the first © Mort Tucker Photography One study from the National As- builders in the area to be an Ener- sociation of Home Builders re- gy Star builder and now we see vealed that buyers will part with more and more builders doing it.” $7,000 or more up front for a home The program is free and pro- that saves them $1,000 a year on vides builders with educational energy costs, said Rob Shearer, who seminars, support and marketing coordinates the FirstEnergy pro- materials. Each home receives a gram through Performance Sys- score based on the Home Energy Defining Cleveland’s skyline tems Development of Ithaca, N.Y. Rating System (HERS) Index — a “That’s a savings of $83 a month, national system for measuring a Keybank, and that is not hard to achieve,” he home’s energy performance. Thank you, for your commitment to the city of Cleveland said. “And these energy efficien- “The typical home has a rating and your ongoing confidence in Jones Lang LaSalle. cies built into the home definitely of 130 on energy efficiency. The add to a home’s resale value. When typical new home is 110, and we’re you buy an Energy Star home to- building at an average of 58,” said jll.com/cleveland day, you’re literally buying the Ryan Puzzitiello, vice president of For a copy of our Cleveland Skyline Review, email [email protected]. home of the future.” sales and marketing for Parkview Homes. Selling stars “The HERS score is now like Leasing – Sales – Management – Office – Industrial That same 2012 National Associ- comparing gas consumption and ation of Home Builders’ study re- MPG (miles per gallon). You’re get- vealed that 26% of buyers want an ting more bang for your buck with 20130923-NEWS--16-NAT-CCI-CL_-- 9/20/2013 1:24 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 23 - 29, 2013 LARGEST SUMMIT COUNTY EMPLOYERS RANKED BY FULL-TIME EQUIVALENT LOCAL EMPLOYEES

Company FTE employees Address Summit County Total number of employees Top local executive Rank Phone/Web site June 30, 2013 in Ohio Type of business Title

Summa Health System 1 525 E. Market St., Akron 44304 6,051 6,642 Integrated health care delivery system encompassing Thomas J. Strauss (330) 375-3000/www.summahealth.org eight hospitals, multiple foundations and a health plan president, CEO Akron General Health System 2 400 Wabash Ave., Akron 44307 3,704 3,803 Integrated health care delivery system Dr. Thomas (Tim) L. Stover (330) 344-6000/www.akrongeneral.org president, CEO Summit County 3 175 S. Main St., Akron 44308 3,312 3,312 County government Russell M. Pry (330) 643-2500/www.co.summit.oh.us county executive Akron Public Schools 4 70 N. Broadway, Akron 44308 3,137 3,137 Public school district David W. James (330) 761-1661/www.akronschools.com superintendent Goodyear Tire & Rubber Co. 5 200 Innovation Way, Akron 44316 3,000 NA Tire manufacturer Richard J. Kramer (330) 796-2121/www.goodyear.com chairman, president, CEO University of Akron 6 302 Buchtel Common, Akron 44325 2,536 2,622 Higher education Luis M. Proenza (330) 972-7111/www.uakron.edu president FirstEnergy Corp. 7 76 S. Main St., Akron 44308 2,458 7,369 Electric utility holding company Anthony J. Alexander (800) 736-3402/www.firstenergycorp.com president, CEO Akron Children's Hospital 8 One Perkins Square, Akron 44308 1,985 3,757 Pediatric health system William H. Considine (330) 543-1000/www.akronchildrens.org president, CEO Babcock & Wilcox Co. Engineering, manufacturing and construction services J. Randall Data, president, COO, 9 20 S. Van Buren Ave. and 91 Stirling Ave., Barberton 44203 1,900 2,600 for nuclear, renewable, fossil power and industrial Babcock & Wilcox Power (330) 753-4511/www.babcock.com customers Generation Group Inc. Diebold Inc. 10 5995 Mayfair Road, North Canton 44720 1,696 2,041 A global leader in providing innovative self-service Andy W. Mattes (330) 490-4000/www.diebold.com technology, security systems and related services president, CEO City of Akron 11 166 S. High St., Akron 44308 1,694 1,730 Municipal government Donald L. Plusquellic (330) 375-2330/www.akronohio.gov mayor Giant Eagle Inc. Bill Artman 12 5300 Richmond Road, Bedford Heights 44146 1,530 12,300 Food, fuel and pharmacy retailer senior vice president, (216) 292-7000/www.gianteagle.com retail operations State of Ohio 13 30 E. Broad St., Columbus 43215 1,319 48,342 State government John R. Kasich (614) 466-2000/www.ohio.gov governor Allstate Insurance Co. 14 75 Executive Parkway, Hudson 44237 1,280 1,535 Financial services and insurance Rob Hair (330) 656-6000/www.allstate.com director Fred W. Albrecht Grocery Co. 15 2700 Gilchrist Road, Akron 44305 1,232 1,541 Retail grocery and pharmacy stores Steve Albrecht (330) 733-2263/www.acmestores.com president Bridgestone Americas Inc. Hank Hara, chief technology 16 10 E. Firestone Blvd, Akron 44317 1,206 2,284 Tire manufacturer officer, Bridgestone Americas (330) 379-7000/www.bridgestoneamericas.com Tire Operations Jo-Ann Stores Inc. 17 5555 Darrow Road, Hudson 44236 1,192 1,439 Fabric and craft retailer Travis Smith (330) 656-2600/www.joann.com CEO, president U.S. Postal Service Melvin J. Anderson 18 2200 Orange Ave., Cleveland 44101 1,020 11,300 U.S. postal service acting district manager, (800) 275-8777/www.usps.com Northern Ohio District Group Management Services Inc. 19 3296 Columbia Road, Suite 101, Richfield 44286 860 NA Professional employer organization Michael Kahoe (330) 659-0100/www.groupmgmt.com president Newell Rubbermaid JB Broadous 20 3200 Gilchrist Road, Mogadore 44260 800 1,200 Global marketer of consumer and commercial products director, (330) 784-7141/www.newellrubbermaid.com Ohio operations

Lockheed Martin Corp. Colleen Arthur, general manager, Flight simulators, weapon systems, laser and sensor Akron; director, Integrated 21 1210 Massillon Road, Akron 44315 700 700 systems, tethered aerostats, high-altitude airship, Defense Technologies market (330) 796-2800/www.lockheedmartin.com precision machining segment U.S. Office of Personnel Management C. Frank Figliuzzi, chair, 22 1900 E St., NW, Washington 20415 659 50,061 Federal government Cleveland Federal Executive (202) 606-1800/www.opm.gov Board County of Summit Development Disabilities Board 23 89 E. Howe Road, Tallmadge 44278 570 570 Provides services to individuals with disabilities and Thomas L. Armstrong (330) 634-8000/www.summitdd.org their families in Summit County superintendent Hudson City School District 24 2400 Hudson-Aurora Road, Hudson 44236 569 569 Public school district Phillip T. Herman (330) 653-1200/www.hudson.edu superintendent Time Warner Cable 25 530 S. Main St., Suite 1751, Akron 44311 567 2,013 Provider of video, high-speed data and voice services John H. Higgins Jr. (330) 572-4020/www.timewarnercable.com in the United States area vice president of operations Dominion East Ohio Scott C. Miller 26 1201 E. 55th St., Cleveland 44103 560 1,567 Natural gas distribution vice president, (800) 362-7557/www.dom.com general manager Rockwell Automation Inc. Frank Kulaszewicz 27 1 Allen-Bradley Drive, Mayfield Heights 44124 435 2,009 Global provider of industrial automation control and senior vice president, (440) 646-5000/www.rockwellautomation.com information solutions architecture and software Eric Roegner, COO, Alcoa Alcoa Investment Castings, Forgings Aluminum forgings for aerospace, automotive and and Extrusions; president, Alcoa 28 1600 Harvard Ave., Cleveland 44105 400 1,203 commercial transportation markets Defense; Tim Myers, president, (216) 641-3600/www.alcoa.com Alcoa Wheel and Transportation Products Oriana House Inc. 29 P.O. Box 1501, Akron 44309-1501 380 562 Nonprofit ageny providing community corrections, James J. Lawrence (330) 535-8116/www.orianahouse.org chemical dependency treatment, and re-entry services president, CEO UPS Dwayne Meeks 30 4300 E. 68th St., Cleveland 44105 375 9,926 Parcel delivery president, (216) 641-3027/www.ups.com UPS Great Lakes District Source: FirstMerit and Sterling Jewelers did not respond. Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify RESEARCHED BY Deborah W. Hillyer the information and there is no guarantee these listings are complete or accurate. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. 20130923-NEWS--17-NAT-CCI-CL_-- 9/20/2013 3:00 PM Page 1

SEPTEMBER 23 - 29, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Ohio City: New businesses have helped create housing demand

continued from PAGE 1 ers snapping up properties that “We wanted a lifestyle with more have not been remodeled and in- freedom, a home that’s easier to vesting heavily in them. take care of, and what attracted us Ironically, Ohio City Inc.’s efforts to the city was that we did not want the last three years have focused on to be in cars all the time.” the neighborhood’s commercial The Roberts family is not alone at district near the West Side Market, that price point in the neighbor- in part due to the beloved institu- hood near downtown that’s home tion’s 100th anniversary last year, to the West Side Market and the and also the severity of the housing West 25th Street entertainment dis- downturn. trict. They are part of a re-emer- “We were able to fill a lot of gence after the housing collapse of shops,” Mr. McNair said. “We’ve pricey urban living — a revival that taken (storefront) vacancy to 3% is easy to overlook given the city’s from 30% since 2009. The 53 busi- foreclosure problems and housing nesses that have opened up in Ohio abandonment issues. City have created a lot of demand Roger Scheve, an agent at for Ohio City living. I wish we could Re/Max Beyond 2000 in Middleburg say we planned it that way, but Heights who works from his Ohio we’re not surprised.” City home in a practice serving the Mrs. Roberts said she has had no city and suburbs, shared a statistic buyer’s remorse. Instead, she recalls from the Multiple Listings Service a pleasant surprise that occurred that’s jaw-dropping to many long- the day she and her husband un- time Clevelanders. packed their grand piano that the “On average, more than once movers had left at 11 p.m. They every two weeks, there is a buyer were tired and hungry, and wanted paying more than $200,000 for a something to eat. home or condo in Ohio City, and it “We walked to (West) 25th for beer has picked up recently,” Mr. Scheve and burgers,” she said. “It was great! said. “The number of $200,000 sales I swore we would support local has increased 50% over the last restaurants once a week. We’ve three years.” been out a lot more than that.” A study put together by Mr. MARC GOLUB Scheve shows 91 homes in Ohio A ‘changed view of proximity’ This home on Whitman Avenue in Ohio City recently sold for $330,000. City sold over the last three years for Residential brokers active in the remain. Mrs. Roberts cites friends to help secure a loan for two resi- boarded-up home, although the prices ranging from $200,000 to city say Ohio City has had a strong worried about safety, but she says dents to build a 3,000-square-foot street is most notable for multiple $580,000. year, though they add that other it’s a matter of using street smarts home on Clinton Avenue. Buyers gorgeously painted Victorian houses. Mrs. Roberts said she and her walkable city neighborhoods, from and staying in busy, well-lit areas. also tolerate the heterogeneous na- Mr. Sharkey attributes the mo- husband don’t fit the profile most Little Italy and University Circle on Eric Wobser, executive director of ture of area values, with a $300,000 mentum in Ohio City to West 25th’s analysts use to describe hipster the East Side to Tremont and De- Ohio City Inc., said the nonprofit’s home next to a $20,000 one. commercial rebound and the pop- neighborhoods — dominated by troit Shoreway on the west, have goal is to keep multifamily develop- The sales are supporting the case ularity of the neighborhood among young professionals with a taste for had good results this year as well. ment on the neighborhood’s com- for construction. people who want to live near, but urban life and distaste for commut- Scott Phillips Jr., an agent and mercial streets in order to retain the David Sharkey, president of Pro- not actually in, downtown. ing. president of the New Homes Group integrity of the single-family neigh- gressive Urban Real Estate, said the Big-ticket downtown commer- Both are 58. But she said one at the downtown Cleveland Keller borhood, which suffered less from company’s Civic Builders affiliate is cial projects are helping, too. thing that excited Mr. Roberts about th Williams office, chalks up some of foreclosure woes than others. erecting a pre-sold home on West 45 “There’s a positive vibe in the city the neighborhood was that he could the renewed housing demand in The nonprofit had to work hard Street. It is diagonally across from a like none I’ve seen,” he said. ■ bike to his office at Empire Valua- those neighborhoods to what he tion Consultants LLC, a business called “a changed view of proximi- valuation firm in downtown’s The- ty.” ater District, and could walk to “People are buying in the city be- Browns and Indians games. She cause it does not take that long to likes walking to the supermarket get anywhere,” Mr. Phillips said. and the entertainment district. “You don’t need the car as much. In The house search surprised her in terms of new homes, I can sell you one respect. anything you want in the suburbs. “It was a very tight market,” Mrs. Now at West 57th and Bridge, I have Roberts said. “I’d find something nothing for you.” online and call our Realtor and find Mr. Phillips noted his team, it had three offers.” which handles newly built Battery The couple sold their home in Park condo listings in the Detroit Shaker in 60 days. She believes the Carroll Avenue house, on the mar- Shoreway neighborhood, had seven ket since February, was waiting for resales there this year, generally for them. 5% or more than the sellers originally paid in the period from 2007 to Beer and burgers? Yes! 2009. For decades, the rap on Ohio A Crain’s analysis of Cuyahoga BENEFIT FROM DISNEY’S EXPERIENCE IN INSPIRING City’s resurgence was that people County home sales shows a house would pour sweat and money into at 2619 Vestry Ave. in Ohio City that CREATIVITY AND LEARN TO THINK DIFFERENTLY older homes and would have a hard sold earlier this year for $335,000 th time selling and getting their mon- ranks 710 highest of 2,000 residen- ey out of them — a situation that tial sales through August. However, became common across much of among Cleveland sales, 24 of the the country during the housing 100 highest sales prices were Ohio downturn. City addresses. Tom Bier, a senior analyst at By contrast, the sales volume and Foster a collaborative environment • Maximize creative output prices in 2007 in Ohio City were Cleveland State University’s Maxine Nourish creativity in your organization • Take an idea from expression to implementation Goodman Levin College of Urban dominated by areas with more new single-family home building, in- Affairs and a longtime observer of Date: Tuesday, October 29, 2013 AGENDA: the local housing scene, described cluding Detroit Shoreway, Tremont 7:30 – 8 a.m. Registration and the change in Ohio City in a word: and the lakefront Edgewater area. Continental Breakfast Mr. Scheve of Re/Max Beyond “Enormous.” 8 – 9:30 a.m. Collaborative Culture 2000 said he constantly fields calls Location: Corporate College Tom McNair, director of eco- 10 – 11:30 a.m. Organizational Identity nomic and community develop- from prospective landlords who 4400 Richmond Road 11:30 a.m. – 1 p.m. Lunch ment at the Ohio City Inc. econom- want to buy a move-in ready rental Warrensville Hts, Ohio 44128 ic development nonprofit, also property for $20,000 to cash in on FREE Parking on-site 1 – 2:30 p.m. Structural Systems appreciates the switch. Ohio City’s hard-won popularity. 3 – 4:30 p.m. Leader’s Role “It’s great to see people getting “I tell them that they’ll find it in their money out of their properties,” the Clark-Denison area, not Ohio ADVANCE REGISTRATION - ONLY $395 FOR A LIMITED TIME Mr. McNair said, calling it the cul- City,” Mr. Scheve said. FULL TABLE (EIGHT GUESTS) ONLY $2,850 mination of years of effort to rebuild Building on a ‘positive vibe’ the neighborhood. He also calls attention to another key trend — buy- In urban areas, some problems www.corporatecollege.com/disney | 216-987-0233 20130923-NEWS--18-NAT-CCI-CL_-- 9/20/2013 1:24 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM SEPTEMBER 23 - 29, 2013

other startup expenses of the new groups and were not enthusiastic Energy Center in Cincinnati and the convention center and medical about changing their ways and com- Miami Beach Convention Center. It MMPI: Major players exit mart. Besides covering most of ing to Cleveland to do their shopping. also operates the Wolstein Arena at those building costs, the county In 2011, the plan was revised to Cleveland State University. continued from PAGE 1 tight, is a long one. also agreed to pay MMPI an annu- make the building a center for MMPI developed and now man- The county and MMPI, then al operating subsidy of at least $6 medical and health care education. Family ties severed ages the 750,000-square-foot con- called Merchandise Mart Properties million, because convention cen- That concept didn’t gain traction, It also hasn’t helped the relation- vention center under the down- Inc., came together because, more ters usually are loss leaders for a so last year, James Bennett, a Cleve- ship that the men who led MMPI town Mall and the four-story than a decade ago, the city of Cleve- community’s tourism trade. lander and a management consul- and Cuyahoga County to the altar Global Center for Health Innova- land was unable to generate any en- tant with experience in working are gone, and with them the emo- tion at the corner of Ontario Street thusiasm, or a revenue stream, for a Love on the rocks with health care companies, was tional ties that bound the partners and St. Clair Avenue, described by new convention center to replace its As time passed, however, the two hired by MMPI to lead the Cleve- together. an MMPI executive as the “Epcot of aging facility under the Mall. partners found living together was- land operation. When Cuyahoga County and health care.” Then, in 2005, Cleveland Clinic n’t going to be as easy as it first ap- Mr. Bennett recast the building MMPI began their courtship in Mr. FitzGerald said no successor CEO Toby Cosgrove resurrected peared. As in any complex business into a place where medical technol- 2005, principals of both organiza- to MMPI has been chosen, but that the idea of a medical mart, a central union, the close contact between ogy companies collaboratively could tions — you could call them the a deal with a new manager is likely place for hospitals to visit their sup- Cleveland and Chicago produced showcase leading-edge health care matchmakers for their respective by mid-November. And he said he pliers. The idea had been kicked chafing that began early on. technology and information sys- professional families — were old expects the deal would be finan- around by several cities, including Downtown interests were dis- tems, with exhibits such as “the op- personal friends. cially advantageous for county tax- Cleveland, at times over the previ- mayed when the company said it erating room of the future.” Chris Kennedy was the son of the payers, who are bound by contract ous two decades. would prefer that the complex be late Sen. Robert F. Kennedy and the to subsidize the operation of the Tim Hagan, then a county com- located near Cleveland Clinic and Changing wants, needs grandson of Joseph Kennedy, who $465 million property. missioner, was quickly onboard. He University Hospitals Case Medical However, it also became clear bought the Chicago Merchandise A spokesman for Chicago-based believed a medical mart would make Center, though it quickly caved. over time to the county that filling Mart in 1945. Though the Kennedy MMPI said the company is looking it easier to attract to Cleveland med- “Having a downtown Cleveland the convention center would be family sold the business to Vorna- for an experienced convention cen- ical and health care meetings and location is better than having no vastly more important from a rev- do Realty Trust in 1998, Chris ter manager. The county must ap- conventions, the fastest-growing Cleveland location,” Mark Falanga, enue standpoint than leasing space Kennedy stayed on as an executive. prove of any change in operator. segment of the convention business, an MMPI senior vice president, in the medical mart. MMPI was enticed to Cleveland by Mr. FitzGerald was careful to and make a new convention center grumbled to Crain’s in 2008. MMPI had no experience man- Mr. Hagan, a longtime friend of the make it clear that MMPI has not more attractive to taxpayers. The company then angered aging convention centers, though it political Kennedy clan and godfather failed to meet any contractual Mr. Hagan brought a longtime many Cleveland traditionalists in was confident it could hire the nec- to Chris Kennedy’s sister Kathleen. benchmarks, which include bringing friend from Chicago, Christopher 2009 when it proposed putting the essary talent. Both are gone. Mr. Hagan left of- 45 shows to the exhibition hall and Kennedy, president of Merchan- medical mart at the north end of Still, even if it did, MMPI faced a fice when the new county charter generating 58,500 hotel room nights dise Mart Properties, into the con- the Mall, which would have shat- significant challenge. Its single con- government was inaugurated in in the first two years of operation. versations. tered the original mall plan of ur- vention center in Cleveland is a January 2011. Six months later, Mr. But the contract also gives the MMPI was the owner of Chicago’s ban designer Daniel Burnham and small fish in a big pond. Convention Kennedy left MMPI. county the right to approve a succes- Merchandise Mart and other giant blocked the view of the lakefront. center marketing is dominated by Since his departure, Vornado has sor, and Mr. FitzGerald said he be- showrooms, many where furniture A year later, MMPI missed bud- large convention management firms sold at least a half-dozen furniture lieves a revised agreement with a new and design firms display their wares. get and design deadlines that that can pitch meeting planners on and design centers around the manager will enable the county to re- Indeed, companies that sold furni- pushed groundbreaking into 2011. slots in convention centers across country and has told securities an- duce the agreed-upon annual subsidy ture for hospital and doctors’ office The delay created anxiety locally the country with one sales call. alysts it intends to unload the entire to the convention center operator. waiting rooms already had sales out- because developers in Nashville The biggest convention opera- showroom operation, including the All of this also is a prelude to lets in the Merchandise Mart. Soon, and New York City were consider- tors are SMG Worldwide of West keystone Merchandise Mart. naming an operator for a hotel that MMPI was interested in partnering ing building competing medical Conshohocken, Pa., and Global At this stage, neither Mr. FitzGer- will rise adjacent to the convention with the county. marts and it looked like they might Spectrum of Philadelphia. SMG ald, who was mayor of Lakewood center on the site of the current It didn’t hurt that the company be moving ahead faster than Cleve- manages 74 convention centers, in- when the former county commis- county administration building. knew the project would come with land. Projects in both those cities cluding the Greater Columbus Con- sioners did the deal, nor the leaders of That decision is expected soon. a substantial dowry. eventually would collapse. vention Center, McCormick Place in Vornado have the same emotional in- Sweet courtship County commissioners in 2007 Marketing of the medical mart Chicago and Moscone Convention vestment as Mr. Kennedy and Mr. raised the county sales tax to 7.75% did not go smoothly, either. Center in San Francisco. Global Hagan to make the marriage work. The road to the unraveling of this from 7.5% to support a bond issue It turned out hospitals did much of Spectrum controls more than 30 Divorce was the obvious relationship, which once was so to cover construction costs and their purchasing through buying convention centers, including Duke solution. ■

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SEPTEMBER 23 - 29, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS There’s value in for the New York office. Steven Kaufman, respective locations. SEPTEMBER 16 - 22 the firm’s managing member, also expects The fields are a fit for SBA lending because those parking spaces to hire a paralegal within the first month. their lack of collateral makes it “hard to The big story: The Cleveland Clinic, North- ■ To launch the $65 million makeover of the Once Mr. Kaufman is admitted to the New bank them” traditionally, Mr. Klimas said. east Ohio’s largest employer, is in the process of former East Ohio Building at 1717 East York State Bar, he will split his time between The team closed its first loan to a funeral cutting $330 million from its budget for next year Ninth St. in downtown Cleveland as apart- the offices. home in Indiana last week. — Michelle Park — a move that could result in an unspecified ments, developer K&D Group paid “We have existing clients that Lazette number of employee layoffs and thousands of $7.9 million for the complex have indicated to us that they early retirements. As part of the cost-cutting on Sept. 11, according will turn to us if we have a Weatherhead designs an measure, the Clinic, which posted about $6 to Cuyahoga County presence in New York,” Mr. innovation/design department billion in operating revenue last year, said it will land records. Kaufman said. — Michelle offer early retirement plans to 3,000 eligible Why so much for a Park Lazette ■Case Western Reserve University’s Weather- employees. The Clinic also is placing a stricter long-empty office build- head School of Management has launched review on filling vacant positions and reducing ing, even with 21 floors? Doug Price, CEO of Lending at Lorain National a department its leaders suggest will inspire its operating costs. K&D Group, said the value came from the students to go beyond “best practices” and busy, 500-car parking garage that came with goes to the dogs — sort of work creatively to solve problems. This is unconventional: The Cleveland the building. The county assigns a $6 million ■ Confident that niche lending is one way to Weatherhead’s new Department of Inno- Convention Center and the Global Center for market value to the garage for tax purposes. grow revenue, Lorain National Bank has hired vation and Design incorporates faculty from Health Innovation are not yet fully open, but Seller Sovereign Partners Ltd. of New York a trio of bankers who do targeted lending to the former marketing and policy studies and Cuyahoga County and MMPI Inc. already are City paid $12 million for the complex in veterinarians, funeral homes, general medical information systems departments. Weather- looking for an experienced convention center 2006, when the office building still had some professionals and dentists. head says it is the first business school in the manager for the complex. County Executive tenants. — Stan Bullard The team will make Small Business Admin- world to craft such a department. Ed FitzGerald said no successor to MMPI as istration loans, a type that affords Lorain “We’re seeing change in the organizations convention center operator has been chosen yet. Ready to take a bite National the option to sell government- around us, and employers are looking for “Our biggest concern is to make sure we sign off guaranteed portions of the loans on the sec- people who can cross disciplines and aren’t on the operator who is the best in the country,” out of the Big Apple ondary market to generate more revenue, narrowly focused,” said Richard Buchanan, he said. See analysis, Page One. ■ As it nears its third year in business, bou- said Daniel E. Klimas, president and CEO of chairman of the new department. tique trial and litigation firm Kaufman & Co. Lorain National. “There are a lot of other schools watching Shopping spree: Malls in North Olmsted and is branching out to New York City. “As banks have become healthier, the chal- what we’re doing,” he added. Canton were among seven properties that West- On Oct. 1, the firm will open an office in lenge for banks is growing revenue,” he said. Among other things, students will learn field Group agreed to sell to affiliates of Boston- midtown Manhattan at 733 3rd Ave. Eugene Jim Baemel joined the Lorain-based insti- how to transform technological ideas from based Starwood Capital Group R. Scheiman, most recently a partner with tution as its senior vice president of small the university’s medical and engineering for $1.64 billion. After the the Arent Fox law firm, has joined Kaufman business lending in late July. He will continue programs into new products, how to build deal is done, Belden Village in & Co. and will lead the office. to work from Columbus, as he did for Park strategic plans for organizations based on Canton and Great Northern Kaufman & Co., based in Cleveland’s View Federal Savings Bank of Solon. consumer research, and how to improve in North Olmsted will join North Point Tower, opened in January 2011. Spencer Twyford also will work for Lorain customer experience. SouthPark in Strongsville Its local office employs eight lawyers and National out of Columbus, and Chris Jackson “This is a department that is now oriented as Starwood Capital Group five staff members. will stay in Lexington, Ky. Both men previ- to innovation, studying it and creating it,” assets. Starwood bought the The firm is interviewing to hire an associate ously worked for Huntington Bank in their Dr. Buchanan said. — Timothy Magaw Strongsville mall last year. Belden Village has 826,140 square feet of selling space and Great Northern almost 1.2 million square feet. WHAT’S NEW BEST OF THE BLOGS

Howdy, neighbor: Omnova Solutions Inc. Excerpts from recent blog entries on confessors press submit, they are greeted made it official by announcing it plans to move CrainsCleveland.com. with the image of the googly-eyed goat being from Fairlawn to a new corporate headquarters at pushed off a cliff by a priest — the way that Chagrin Highlands in Beachwood. The specialty early third-century rabbis describe the chemicals producer plans to buy 8.5 acres on Development vehicles scapegoat’s banishment.” Harvard Road in Chagrin Highlands, a develop- ■ Bus rapid transit, such as the RTA Health- She wrote that the site already has more ment of the Richard E. Jacobs Group. It intends Line in Cleveland, “can not only spur devel- than 15,000 users who “have admitted to to construct a two-story, 57,000-square-foot opment, but can do so far more efficiently things as trivial as ‘I wear headphones (not building and to move to the new building by late than light rail and streetcars,” according to a attached to anything) to avoid conversa- 2014. The site is near Eaton Center, the new U.S. Forbes.com story on a study from the Institute tions’ and as serious as ‘I literally hide from campus of Eaton Corp. for Transportation and Development Policy. my mother-in-law who lives with us, so “Both BRT and LRT can leverage I don’t have Agents of Shield: The Cleveland Clinic is many times more development to be compas- working to turn its breast cancer vaccine into a investment than they cost. Now sionate and commercial product. The hospital system has we can say that for sure,” said insti- supportive.’” spun off a company, Shield Biotech, tasked with tute director, Annie Weinstock. “Per Some rabbis proving that the vaccine works in humans. The COMPANY: Eye Lighting dollar of transit investment, and like the app, new company raised an undisclosed amount of International, Mentor under similar conditions, BRT can “since they say investment capital from external sources, as well leverage more (development) it makes Judaism accessible,” as a smaller amount from the Clinic. The cash PRODUCT: 600W Blue Metal investment than LRT or streetcars.” according to Ms. Meiser. “Read more confes- will allow Shield Biotech to take the vaccine For example, the story said, the HealthLine sions on Twitter @sinfulgoat.” through animal testing and two Phase I clinical Halide grow lamp “has generated $5.8 billion in development trials. — $114 for each transit dollar invested.” By In the money The new lamp comes from Eye Hortilux, a contrast, Portland’s Blue Line, a light rail Keep trying: Sherwin-Williams Co. completed division of Eye Lighting, which makes lamps, project completed in 1986, generated $3.74 ■ Hey Monea!, a rock band from Canton, is the acquisition of the U.S. and Canadian busi- luminaires, controls and related lighting prod- per dollar invested. one of the beneficiaries of a move by big ness of Mexican paintmaker Consorcio Comex. ucts. Eye says the high-intensity discharge BRT’s efficiency “makes sense — bus brands to get into the music business. Cleveland-based Sherwin-Williams will pay $90 lamp is designed to be used as a light source rapid transit lines are generally cheaper to The band is one of the latest signees to million in cash and assume liabilities currently for indoor gardening. develop than rail lines (though some trans- Hard Rock Records. valued at around $75 million. The companies The 600-watt lamp “provides a spectral portation experts balk at the comparison) “A little more than a year ago, the world- said they remain “fully committed to securing distribution that closely mimics natural sun- — but the difference has never before been wide hotel and restaurant chain, with an ob- regulatory approval” to complete the acquisition light, according to Eye. The company says documented,” according to Forbes.com. vious and longstanding association to mu- of the Comex operations in Mexico. A Mexican indoor gardens “are more productive with sic, announced they would be undertaking commission in July voted 3-2 against authorizing better quality spectrum coming from the Got your goat a new venture — all in the name of market- the acquisition. lamp.” Its Blue lamp family now provides ing — and joined an ever-expanding list of 250-, 400-, 600- and 1,000-watt options and ■ Cleveland writer Rebecca Meiser placed brands that have launched private record la- A bumper Crop: Crop Bistro chef Steve Schi- can be used as a stand-alone light source, her first story into The Wall Street Journal, bels in support of the music community,” moler and developers of the Flats East Bank according to the company. and it was a fun piece about websites and Forbes.com reported. Neighborhood plan to plant two new Crop con- The new lamp “provides indoor growers with apps that allow users to confess their sins From Red Bull Records to Mountain cepts with views of the Cuyahoga River and large a powerful spectrum that is needed for situa- anonymously. Dew’s Green Label Sound, “it has become riverfront patios in the project’s next phase. Mr. tions that require medium light intensities,” One of the major efforts in this space is an increasingly popular method of raising Schimoler plans to open Crop Kitchen & Vine said Mike Anderson, director of specialty eScapegoat, launched as the Jewish season awareness around a brand or product, and and Cropicana in spring 2015 in 10,000 square products. “Now all indoor gardeners regard- of repentance began. an attempt at adding a certain ‘cool factor’ feet in the proposed second phase of Flats East less of their preferred wattage can benefit “Users anonymously upload their 120- to a brand’s profile,” the website noted. Bank. from the spectral quality provided by the Blue character confessions onto a cartoon goat The deal is working for Hey Monea!, grow lamp family.” via text or email,” Ms. Meiser wrote. “When which has an album due out this month. 20130923-NEWS--20-NAT-CCI-CL_-- 9/20/2013 1:25 PM Page 1

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