20150720-NEWS--21-NAT-CCI-CL_-- 7/16/2015 9:01 AM Page 1

Vol. 36, No. 29 Entire contents © 2015 by Crain Communications Inc. $2.00/JULY 20 - 26, 2015

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The owner of the IMG Center says the downtown office market is as lively as he’s ever seen it — P. 4 Cuyahoga County wants to guide entrepreneurs through ‘valley of death’ via three loan programs — P. 6 KATE LORD Cleveland company takes on New York-sized project Ameco, a small Cleveland-based manufacturer, created large sculptures for world-renowned architect and artist Santiago Calatrava that are on display along Park Avenue in New York City. Of the seven sculptures in the collection, Ameco made the three largest. See story, page 3 Plenty to see and do Veritix gains entry Host committee for GOP convention is making plans for guests’ free time to exclusive club By JAY MILLER By KEVIN KLEPS It’s also a potential game-chang- [email protected] What’s being planned so far: [email protected] er for an industry that has largely been controlled by Ticketmaster. „ The Western Reserve Historical „ The Cuyahoga Valley National Local public officials and civic Veritix has already outgrown sec- The combined company has Society is planning a number of Park leaders are planning to leaders are happy Cleveland is host- ond- and fourth-floor spaces in the more than $2 billion in annual sales, things, including static displays of showcase two sites they run — ing the Republican presidential Chase Financial Tower at Tower and it would seem to represent an political memorabilia and videos of Lawnfield, the Mentor home of nominating convention City Center. ideal mix of access (AXS parent politicians from the area who made former president James Garfield, next July. Paid staffers The digital ticketing company company AEG has relationships a splash in national politics, such as and the First Ladies Library in and volunteers are hard owned by Dan Gilbert is now, in the with more than 100 major venues), RNC former president James A. Garfield Canton. at work preparing for words of CEO Sam Gerace, “squat- innovation (a heavy focus for both and president kingmaker Marcus the four days when the ting” in a wide-open fifth-floor of- companies) and sports (Veritix’s Hanna. It will adorn the pillars in the CLE focus of the country will „ In Lake County, officials are fice as it looks for yet another home. digital lifeblood). baggage claim area at Cleveland be on the comings and putting together a package to By the end of the year, Veritix also Veritix-AXS has partnerships with Hopkins International Airport. goings of the party’s politicians, es- promote their destinations, including will have a new name, thanks to a five NBA teams, five Major League pecially the presidential and vice golf courses and the waterfront. merger last month with Los Ange- Soccer clubs, two NHL teams, the presidential candidates who will „ University Circle is planning to They also will target the Utah les-based AXS that makes the com- Detroit Lions (Veritix ended Ticket- dominate the podium at evening have a “Circle Pass” that will allow delegation and a few others with bined entity the second-largest tick- master’s exclusive hold on the NFL sessions at Quicken Loans Arena. convention week visitors entry to a information on the Mormon Temple eting company in North America. in 2013) and the WNBA’s Minneso- But another cadre of folks is number of University Circle in Kirtland, one of the religion’s key Things are changing at the com- ta Lynx. thinking about the free time the museums for one price. sites. pany almost as rapidly as a ticket to Factor in deals with the NCAA, 40,000 or so convention-goers, me- a Cleveland Cavaliers game switch- several major colleges, minor- dia members and influence ped- es hands on Flash Seats. league and semipro teams, plus a dlers will have during convention They hope that, in addition to giv- visitors bureau, told Cuyahoga “We’ve been busy for nine years budding high school sports busi- week. ing convention goers a good time, County Council last Wednesday, bringing innovation to the ticketing ness, and Gerace believes the com- These are the people who want the city and its sights will make a July 15, that one key benefit of host- market — an industry that’s been bined company can end Ticketmas- the members of the media, Repub- lasting impression. ing the convention is to have the dominated by a monopoly and has- ter’s lengthy tenure atop the licans and their supporters to David Gilbert, president and CEO opportunity to sell the city and the n’t seen innovation in decades,” industry. spend some of their non-conven- of both the Cleveland 2016 Host region to the media and to people said Gerace, who has managed Ver- “Absolutely,” the Veritix CEO tion time taking in the region’s arts, Committee and Destination Cleve- who might return again as tourists. itix since its 2006 launch as Flash said. “And we will win because of recreational and cultural venues. land, the regional convention and See RNC, page 18 Seats. “This is a validation.” See VERITIX, page 10 20150720-NEWS--2-NAT-CCI-CL_-- 7/17/2015 11:47 AM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? 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52 TIPS FOR YOUR BUSINESS #29 – Increase Productivity by Reducing Stress Stress in the workforce has become one your mind often does, too,” she explains. of the biggest problems in business today. “People often adopt poor eating and lifestyle It has been called a global epidemic, with habits as a form of stress relief, but those July 20 numerous studies encouraging businesses habits just make the symptoms worse.” to be more proactive in helping their Exercise is another important factor. Just employees manage stress. 30 minutes of exercise a day can have a “Every day, people deal with stress at ZPNUPÄJHU[ PTWHJ[ VU Z[YLZZ ,]LU H[ ^VYR By The Numbers work or in their personal lives — or probably when feasible, Ballog says employees both,” says Cindy Ballog, manager of should be encouraged to do things like go The Small Biz Challenges of 2015 Health Promotion, Wellness and Disease for a walk at lunch or use the stairs instead Management for Medical Mutual. “That’s why of the elevator. it’s important for organizations to understand 6M JV\YZL LHJO LTWSV`LL PZ KPɈLYLU[ [OL LɈLJ[ P[ JHU OH]L VU [OL OLHS[O VM [OLPY ^OLU P[ JVTLZ [V Z[YLZZ ^P[O KPɈLYLU[ employees, and what that means for the ZV\YJLZ HUK KPɈLYLU[ LɈLJ[Z VU [OLPY future of their business.” OLHS[O :VTL LTWSV`LYZ VɈLY JSHZZLZ VU 42% With the high demand and fast pace of Cindy Ballog, relaxation techniques and managing time Hiring new employees today’s work environment, employees at Medical Mutual TVYL LɈLJ[P]LS` ,TWSV`LLZ ZOV\SK HSZV practically every level of an organization are feel comfortable discussing challenges and 37% 45% dealing with some level of stress. By providing But there are more long-term consequences. asking for help, which can help reduce stress Increasing Growing stress management resources, organizations Chronic stress can weaken the immune for those employees and ensure projects are SURðWV SOURCE: SCORE revenues can help employees be healthier and control Z`Z[LT ^OPJO THRLZ P[ [V\NOLY [V ÄNO[ completed on time. healthcare costs. “Healthy employees VɈ PSSULZZ JH\ZPUN WLVWSL [V NL[ ZPJR TVYL ¸0[JHUILKPɉJ\S[[VLSPTPUH[LHSS[OLZ[YLZZ are often happier and more productive often. It’s also linked to high blood pressure, MHJ[VYZPUSPMLI\[L]LY`VULJHUÄUK^H`Z[V employees,” says Ballog. “In many cases, abnormal heartbeat, heart attacks, anxiety understand their stressors and respond to turnover and absenteeism can also go down.” and depression. These conditions and others them a little better,” says Ballog. “Helping Connection Calendar Stress is hard on the body. There are the can worsen as a result of continuous stress. your employees along in the process could COSE WEBED SERIES: HOW TO VI]PV\Z HUK PTTLKPH[L LɈLJ[Z Z\JO HZ According to Ballog, diet and exercise go help your business be healthier—both JUMPSTART SALES IN 90 DAYS headaches, upset stomach and loss of sleep. a long way. “When your body feels good, WO`ZPJHSS`HUKÄUHUJPHSS`¹ Every business is a sales organization, whether it’s a one-person consultancy or a manufacturing plant. BIG IDEAS Sales guru Marvin Montgomery will share actionable steps to revitalize sales and help you connect your H\KPLUJL[V[OL]HS\LVM`V\YVɈLYPUN JULY 28 Defy the Hand You’re Dealt 11 AM – NOON

Weapons of Mass Creation Fest 2015 Cost: Free Register at www.cose.org/events. Six years ago when Go Media Partner KLZPNU ÄYT 7LU[HNYHT MV\UKLY VM [OL 1LɈ-PUSL`OHK[OLPKLH[VJVTIPUL[OYLLVM Design Observer blog, and a senior critic his passions – art, design and music – into in graphic design at Yale School of Art. A GLIMPSE INSIDE 10KSB a cool, creative endeavor, he never dreamt Bierut, originally from Parma, is donat- Do you know what you need to do to take where it would lead. Today, what started ing his time due to his passion for Cleve- your business to the next level? The Goldman Sachs as a grassroots event to inspire and mo- land and WMC. According to Bierut, there 10,000 Small Businesses initiative can help you chart tivate local creative talent has snowballed was nothing resembling WMC or graphic your path to growth. This session will give you a into one of the most recognized creative design in the suburbs of Cleveland in the glimpse into the wildly successful entrepreneurial conferences in the design industry. And it ‘60s when he was growing up. Bierut will WYVNYHTVɈLYPUNWYHJ[PJHSI\ZPULZZZRPSSZ expert advice and counsel, access to capital is right in our own backyard. The sixth an- explain his journey in a talk titled: “How to and a powerful support network. nual Weapons of Mass Creation Fest, to Use Graphic Design to Get from the Corner be held at the Allen Theatre August 6-9, is VM.YHUNLY9VHKHUK>LZ[UK:[YLL[PU JULY 29 produced by Cleveland graphic and web .HYÄLSK/LPNO[Z[V[OL*VYULYVM-PM[O(] 11:30 AM – 1 PM KL]LSVWTLU[ ÄYT .V 4LKPH HUK Y\UZ VU LU\LHUK[O:[YLL[PU5L^@VYR*P[`PU Tri- C Metro Campus [OLLULYN`HUKMVY[P[\KLVM[OLZTHSSZ[HɈ 6US`@LHYZ¹ who take inspiration from the strong com- The Fest, whose motto is “Defy the Cost: Free munity behind it. Hand You’re Dealt,” is expected to bring RSVP to [email protected]

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JULY 20 - 26, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

PHOTOGRAPHY BY KATE LORD A bustling Park Avenue scene features sculptures by famous architect and artist Santiago Calatrava. Three of the sculptures, including the one above, were manufactured in Cleveland by Ameco. Manufacturer shows off creative side Cleveland metal fabricator creates sculptures for world-renowned artist, on display in New York City By RACHEL ABBEY McCAFFERTY Ameco got involved with the Calatrava pro- ager, said Calatrava wanted to do a project in aerospace and military to commercial nuclear [email protected] ject in 2013 through Steve Bickley, a retired New York that would serve as an aesthetic and and power generation. A large amount of its Virginia Tech professor who was friends with cultural gift to the public. business is in bridge components, which is a American Manufacturing & Engineering Co., the college roommate of Ameco’s president, With a tight timeframe and the scale of the highly specialized field. It’s a small company, or Ameco, is a metal fabricator, not an art studio. Michael W. Perkins. Ameco had worked on a sculptures — some being very large and oth- with 25 employees in two buildings — one in But that didn’t stop the small, Cleveland- Ronald Reagan memorial with Bickley a few ers quite complex — the team knew getting all Cleveland and one with four employees in based manufacturer from taking on a project years ago. The company officially got the or- seven fabricated by one company would be Elyria that goes by ArcAlloy — and about $5 for world-renowned architect and artist Santi- der in March 2014, said sales engineering difficult, Lanzone said. Ultimately, the pieces million in annual revenue. ago Calatrava. Today, large sculptures created manager John Tobias Harkness. were made by Pinwheel in Ukiah, Calif.; Ver- Business has been somewhat sluggish in re- by the company for the Calatrava exhibit are on There aren’t many art fabricators that can steeg Art Fabricators in Bethany, Conn.; and, cent years, Perkins said, but the company is display along Park Avenue in New York City. make something so big, Bickley said, and the through Bickley, Ameco. still going in an industry in which many failed Calatrava views the sculptures as “found few that can often are busy. But pieces of this Upon getting the order, the Calatrava pro- during the recession. The company was start- objects in a human forest,” representing the size are nothing to people in manufacturing, ject took about 14 months for Ameco to com- ed in 1992 and bought the Elyria plant, where link between humans and nature, according and it’s “rewarding” for employees to do plete, Perkins said. That included the work to it could do some of its manufacturing work, in to a news release on his website. something so unique and high profile, he said. ensure the designs were strong enough to 2008. Prior to that, the company handled en- For New York City, the outdoor gallery is a The new NYC Parks exhibition, in partner- withstand the weather and public, the ship- gineering and design and contracted out way to help expose people to art, said ship with the Sculpture Committee of the ping of the raw materials and the cutting and manufacturing it needed done, Kloss said. Jonathan Kuhn, director of art and antiquities Fund for Park Avenue, is part of a long-run- welding of plates. The company’s products Ameco moved to its plant at 4600 W. 160th St. for NYC Parks. But to Ameco, the pieces were ning program called Art in the Parks, Kuhn were delivered in May, and the exhibition will about four years ago and with the move be- a chance to gain some visibility for the quali- said. Bickley officially was working for the run from the beginning of June through mid- came a larger fabricator. ty of work it can provide. Marlborough Gallery, which jointly commis- November. Officials at Ameco would not dis- Overall, Ameco sets itself apart by taking on “It really establishes a credibility, these sioned the pieces with Calatrava, and he con- close what the company was paid for its work projects that other companies don’t have the kinds of projects,” said David R. Kloss, Ame- tracted the fabrication out to Ameco. on the project. overhead or patience to do, Perkins said. “We co’s director of sales and marketing. Dale Lanzone, exhibition curator and man- Ameco serves a range of industries, from are flexible, there’s no doubt about that.”

The Takeaway: „ The individual behind the sculptures is Santiago Calatrava, a “world-renowned artist, architect and engineer,” according to a news release. His artwork has been in exhibits at galleries including New York’s Metropolitan Museum of Art, and he is well- known for designing the still-in-progress World Trade Center Transportation Hub. „ Three companies were involved in fabricating the sculptures: American Manufacturing & Engineering Co. (Ameco) in The two sculptures above, along with the one on Page One, were made by Cleveland; Pinwheel in Ukiah, Calif.; and Ameco. The remaining four, below, were made by other companies. Versteeg Art Fabricators in Bethany, Conn. „ There were seven total sculptures made. Ameco made the three largest. „ The three sculptures made by Ameco were all made of aluminum and painted red. The other sculptures were painted silver or black. „ The sculptures Ameco made were about: 33 feet long by 14 feet wide by 20 feet high; 25 feet long by 10 feet wide by 12 feet high; and 30 feet long by 15 feet wide by 10 feet high.

Information compiled from Ameco, Calatrava’s website and a press representative on behalf of Calatrava’s team 20150720-NEWS--4-NAT-CCI-CL_-- 7/17/2015 11:48 AM Page 1

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STAN BULLARD Jim Breen, who owns and leases the IMG Center, says the building is being shown to prospective tenants three times a day. “At some points in time, it was two showings a month,” Breen said. Downtown office spaces are fiery-hot commodities Brokers say business locations are more coveted than ever

By STAN BULLARD getting trimmed at an unprece- he talks about how the market is [email protected] dented level. tightening and the supply of good, The situation reminds David inexpensive offices is no longer in- Avalon Document Services occu- Hollister, a Newmark Grubb Knight exhaustible. pies part of the 10th floor of the Frank managing director, of The Leader Building, 526 E. Superior Eagles’ hit “Hotel California.” Ave. — prime space for the firm, but “For a lot of tenants at Leader Step up also for apartments, as K&D Group and Standard, they would check in Other buildings are benefiting converts the building to mixed use and never leave,” Hollister said. At from the movement, albeit to a less- with rentals on upper floors. So the 55 Public Square, an Optima Man- er degree. firm was asked to move, if only to a agement Co.-owned building Oswald Centre, 1100 E. Superior lower floor that will remain offices. where Hollister does the leasing, Ave., has landed four tenants from However, J.P. Midgley, the Buffa- “there is a lot more activity than in Leader, and more are in the works HOW BAD IS THAT LEAK? lo-based CEO of Avalon, didn’t go the past.” there and at 1111 Superior (former- for it. Likewise, Jim Breen, who owns ly Eaton Center), according to Myr- “Leader is a nice building and a and leases IMG, said that in leasing na Rodriguez Previte, a Kowit & nice spot,” Midgley said, but the downtown offices since 1989 he has Passov Co. vice president who does document, image and scanning never seen “more (leasing activity) leasing for the two Cleveland prop- firm for legal and construction at any time downtown than now. erties owned by Chicago-based firms expects to be in place in Octo- Sometimes we are showing the IMG American Landmark Properties. ber at IMG Center, 1360 E. Ninth St. building (to prospective tenants) The 55 Public Square building “IMG had nice first-floor space, three times a day. At some points in has landed many attorneys and and it’s also not retail and apart- time, it was two showings a other firms, so the quality budget, ments,” he said. “We have a lot of month.” ready-to-use spaces are disappear- pickups and deliveries from law Breen also is readying the build- ing, Hollister said, an observation firms. It does not bode well to be in ing to sell it and focus on brokerage. that other brokers echo. Other the same building as one that peo- Brokers say IMG is aggressively pur- properties landing significant num- Keep your assets safe by taking the time to ensure that problems ple are living in and going up and suing tenants and is landing an out- bers of tenants include the Broad- down elevators with their laundry.” sized share of transactions at the vox, Caxton and Hanna buildings, at the top of your building are not damaging your bottom line. Avalon is part of a movement 1960s-vintage building. For his part, according to Abram Schwarz, an as- starting to sweep tenants from low- Breen says he can compete for such sociate at Colliers International rent older buildings as they get con- economy-driven tenants because who works on leasing Broadvox and Carey Roofing Corp. has eliminated asset damage due verted to apartments. he runs the building efficiently. He focuses on the city’s locally orient- to a leaking roof with practical solutions since 1946. Both K&D Group at the Leader won’t discuss rents beyond the stat- ed services terms for clients. Building and Warrensville Heights- ed asking rate of $17.75 a square Brokers expect to see upward based Weston Inc. at the Standard foot. pressure on rents in the future, 216 • 881 • 1999 MEMBER: Building, 1370 Ontario St., are However, the results speak for though for now rent concessions CAREY National Roofing readying plans to turn both massive themselves. Eleven companies — and landlords rebuilding office www.careyroofing.com buildings to primarily residential Roofing Corp. founded in 1946 Contractors Association including two related firms — have space for new tenants for free or at with a smattering of office on lower leased a total of 41,000 square feet little cost — dubbed tenant build floors and retail on the first. More in the last eight weeks. The building out — are disappearing. Volume 36, Number 29 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. such redos are afoot. As a result, has just 18,000 square feet left to The movement is a disruption Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Communications Inc. Periodi- tenants are looking for offices near- lease. IMG’s vacancy has dropped that Avalon, which entered the cals 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 Department, 1155 Gratiot Avenue, De- by — many are small law firms that to about 8% from 30% at the start of Cleveland market by buying anoth- troit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 212-210-0750 need to be near downtown’s court- the year. er firm, and others did not see com- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks houses — and most are price-sensi- With a falling supply of space, ing. However, some tenants see it for change of address. For subscription information and delivery concerns send correspondence to Audience Development Depart- tive at a time when the city’s inven- not only as a choice of swallowing ment, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleve- Breen said he regularly sees a look land.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. tory of cheap, old office space is of disbelief on the face of tenants as See SPACES, page 7 20150720-NEWS--5-NAT-CCI-CL_-- 7/17/2015 11:48 AM Page 1

JULY 20 - 26, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Ex-PD managing editor lands at Hennes Communications Thomas Fladung says he knew ‘it was time’ to leave newspapers, but he doesn’t buy into the ‘dying industry’ narrative

By JAY MILLER Fladung, a Canton native, joined Internet news sites. long-term relationships. Among the [email protected] The PD in February 2011. He was And while the newspaper contin- firm’s regional clients are GrafTech hired by former editor Debra Adams ues as a seven-day-a-week publica- International Ltd., Lubrizol Corp., Thomas Fladung is leaving an in- Simmons, who had moved up from tion, it has dropped home delivery to Hawken School, the MetroHealth dustry in crisis to work at a firm that managing editor the previous Octo- four days a week and has seen a System, the Westfield Group and a advises clients dealing with crises. ber with the departure of editor Su- steady decline in circulation. In the number of law firms. Fladung, who was until recently san Goldberg. Fladung leaves The PD process, a separate and growing The firm, on a pro bono basis, for managing editor of The Plain Dealer, six months after George Rodrigue nonunion NEOMG newsroom was a time handled the media onslaught is joining the crisis management-fo- was hired to replace Simmons as ed- created. Increasingly, the newspaper faced by Amanda Berry, Gina DeJe- cused Hennes Communications of itor. relies on stories generated by sus and Michelle Knight in May 2013 Cleveland as a vice president. The Fladung’s long newspaper career NEOMG reporters, as the PD news- after they escaped from the Seymour firm, led by managing partner Bruce includes five years as editor of the St. room run by Fladung continued to Avenue house of Ariel Castro after Hennes, advises a client base that in- Paul (Minn.) Pioneer Press, nine shrink. years of captivity. cludes law firms, hospitals, corpora- years at the Detroit Free Press and “I don’t buy into the whole narra- “I’m very excited” about Fladung tions and public agencies. stops at the Akron Beacon Journal tive that we’re all fleeing a dying in- joining the firm, Hennes said. “We’re “I was a newspaperman for 33 and The Repository in Canton. He dustry,” Fladung said. “I don’t feel a small, boutique firm that is very, years, and I always told myself that began at the Beavercreek Daily News that way at all. I wanted something very focused. Thom understands when it was time, I would know it after he graduated from the nearby different. I’m looking forward to how to communicate. We’re going to was time and I would act on that. University of Dayton. learning some new skills and (facing) throw him into the mix with our ex- And it felt like time to me” to try Anyone who has spent more than Fladung some new challenges and applying isting clients and with ones that something new, Fladung said last three decades in the newspaper what I’ve learned.” come in the door.” Thursday, July 16, from a vacation business has seen a fair amount of Group to operate the cleveland.com Hennes Communications advises In June, Hennes and longtime spot in the North Carolina woods. change. website. clients on how to avoid communica- partner Barbara Paynter parted “I knew I wanted to be in a com- That has been particularly true at With that transition, the site be- tions mistakes that lead to unwant- ways. Paynter has started her own munications field. This opportunity The PD, which in August 2013 saw its came the company’s flagship news ed publicity and supports them public relations consultancy, Payn- came up, and it interested me a lot,” parent company, New York-based operation in Cleveland, a part of when the glare of public scrutiny ter Communications, with a practice he said. “The field of crisis commu- Advance Publications, shake up the what Advance calls its “digital first” can’t be avoided. Its engagement that extended beyond crisis commu- nications is particularly intriguing to Cleveland operation with the cre- strategy — a response to the increas- with some clients might last only a nications to include issues manage- me.” ation of the Northeast Ohio Media ing reliance of news consumers on few days, while with others it has ment and reputation management. BANKING“CRUSH THE COMPETITION”

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 20 - 26, 2015

For Sale - 13,000 Total SF Industrial/Flex User/Investor Opportunity County plans to fund startups, but cash comes with caveats By CHUCK SODER gram was designed to complement there for banana time.” Leach, [email protected] an Ohio Third Frontier program however, noted that the Third that lends money to venture capital Frontier loans don’t include that re- Cuyahoga County is getting into firms and other organizations that quirement. the venture capital business — in- invest in high-tech startups. In- Still, JumpStart may apply for all directly, at least. vestors could receive $1 million or three loan programs. Leach wasn’t The county wants to lend a total more, so long as they raised at least sure whether the nonprofit would of $7.5 million to private investors $7 million from other sources (in- ask the county to alter its terms. 620 Sugar Lane, Elyria, OH and other organizations that fi- cluding the Third Frontier). The Each loan program requires that nance tech startups and other high- county could award a total of $3.5 a vast majority of the money goes to potential small businesses. million through the program. companies based in Cuyahoga t

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* when it needs more capital than preferably those that have yet to re- deal flow in Cuyahoga County, it’s friends and family members can lease a final product but have not going to be an issue,” he said, William P. Nice, Jr., AARE, SIOR provide, but isn’t yet ready to raise proven that they can generate rev- noting that JumpStart has invested money from larger venture capital enue. The organization would have in 50 companies based within the 216.839.2010 funds or a bank. to raise at least $8 million from oth- county. [email protected] HannaCRE.com County executive Armond Bud- er sources. ish regularly talks about wanting to ■ Accelerated Growth Loan help entrepreneurs. It’s a good way Fund: This one’s like the Early Stage This sounds interesting to create jobs in a way that’s open Loan fund, but the recipient would The county loan programs are to people of all races, sexes and ed- focus on more established small designed to fix the same problems ucation levels, according to Nathan businesses, especially those owned that JumpStart was created to fix. RUN FOR 8.22.15 Kelly, interim director of develop- by females and minorities. The or- Leach has long stated that there ment for Budish. ganization would have to raise an- are not enough local sources of ear- “Entrepreneurship is not limited other $7 million. ly stage venture capital for young Kids’ Fun Run - 8:30am to over-educated, rich white folk,” Money for the programs would tech companies. JumpStart also re- he said. come from the county’s economic cently formed a subsidiary called RECOVERY The county, however, isn’t par- development budget. Before the Growth Opportunity Partners in an 5KRun - 8:45am ticularly good at spotting promising money is released, however, the de- effort to help female and minority- 1 mile Fun Walk - 9:15am startups or giving them technical velopment department would have owned businesses, even if the com- assistance. So instead, it wants to to enter into formal contracts with panies aren’t high-tech startups. loan money to organizations that applicants and then ask county But there also are “a lot of other are, Kelly said. council to allot the money. entities in Cuyahoga County that Don’t miss your chance to run with “We are not experts in technolo- would find (the loan program) in- the Cleveland Indians Hotdogs! gy or polymers or Bitcoin,” he said, teresting and useful,” he said. referring to a form of digital money Here’s the catch A few other organizations attend- SPONSORS that has attracted the interest of So are the loan programs any ed an information session about Baird Cleveland Indians some big-name investors. good? Leach, of JumpStart, says yes the loan programs in April. Among Two Cleveland-based organiza- — with a few caveats. them were two more Cleveland- Cleveland Clinic Runwell tions have told Crain’s that they aim For one, the county says that based nonprofits, OneCommunity McDonald Hopkins Legacy Village to participate in the county loan loan recipients would have to pro- and Magnet. KeyBank Stellar Benefi ts programs: JumpStart, a nonprofit vide a guarantee that they will pay OneCommunity, which pro- that works with local entrepre- PROGRESSIVE FIELD Well Fargo Group back the loans. That could create motes the adoption of high-speed neurs, could end up submitting headaches for investors trying to be Internet access, is thinking of sub- proposals for all three of the pro- fair to other investors that receive mitting a proposal. Magnet, which REGISTER posed loan programs, said CEO Ray no such guarantee. helps local manufacturers, believes www.wizathon.com/runforrecovery Leach. Nirvana Analytics, an asset Another issue: If an investment the program has “great promise,” 216-431-4131 Ext 2525 management and consulting firm, group only makes a little bit of but the group is “not yet in the busi- did so already. The deadline for the money, the county would just re- ness of truly raising funds,” CEO #RUN4RECOVERY proposals is July 31. ceive its standard loan payments. Ethan Karp said. So what do the loan programs But if that group manages to double Nirvana Analytics is in that busi- consist of? The details aren’t set in its money, the county wants to re- ness. Founder J. Burner Crew isn’t stone, and applicants could push ceive a proportional share of any- certain that the company and the for changes. However, here’s how thing it makes after that. county will strike a deal, but he they are described in the requests The county’s logic: As Kelly de- praised the county for “trying to get for proposal issued by the county: scribed it, if an investment, “goes capital to companies in the early ■ Innovation Match: This pro- bananas,” the county wants to “be stages of development.”

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JULY 20 - 26, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 SPACES continued from page 4 tional headhunter firm and a start- had at Leader, and he gained valu- Because we understand your business… rent increases, but improving their up job-hunt counseling venture able access to amenities once re- situations. called HuntPath, said he struggled served for big corporations: a pent- Although Tom Ryan, a partner at to find appropriate offices to re- house conference center and the family-owned Ryan LLP law place the outfit’s former office at basement training room. Business firm, smiles and says, “no one likes Leader. “We’re one of the worst commer- moving,” he’s pleased with the ex- Staying put Litigation pansive views at the firm’s new 21st- cial real estate tenants ever,” John- floor office at 55 Public Square. ston quipped, as he’d been on One tenant keeping the same Employment & Labor The firm’s move also helped month-to-month leases since building address is Cleveland- empty lawyers from the Standard downsizing in the recession after based Surety Title Agency. Building who agreed to rent offices the 9/11 terror attacks. Vic Pascucci, president of Surety Real Estate & Construction ranging in size from 100 to 600 He needs a variety of spaces for Title, has been in Leader since 1982 square feet in size as the family different uses and flexibility, as he and said he looks at moving a land Health & Medicine formed the Law Offices of Cleve- expects the firms to add staff as the title firm, which has voluminous land to rent at 55. economy continues to recover. He records, maps and security require- Trust & Estates “We started out with five lawyers looked at a multitude of offices and ments, the same way that “Hanni- moving over and wound up with buildings before landing at IMG’s bal looked at crossing the Alps.” 35,” Ryan said. fifth floor, where he now has a cor- The 12-employee firm will take “It mushroomed. We went from ner office overlooking East Ninth 6,000 square feet, the same amount looking at six suites to a full floor.” Street and Lake Erie. as now, but drop from the 10th floor All told, 50 people shifted from “Before,” he said, “I looked into a to the third. Pascucci said he’s stay- the Standard to 55 in the shared-of- parking garage.” ing put because of the can’t-miss ...you sleep soundly fice arrangement, which bills ten- Johnston said he needed space location and “basically the same ants at cost for Wi-Fi, Internet and that suited very different needs. On rent” as before. Your business is only as strong as the individuals who help phone services. one hand, it had to be top-tier, ap- “I’ve seen a lot of buildings in There’s room for more, and the propriate to selling franchises for Cleveland become apartments over it run smoothly. That’s why we make certain your business move means the lawyers have ac- SearchPath to accommodating the years. This is a gorgeous build- embodies an environment that is safe, compliant and supportive cess to large conference rooms to franchisees as they undergo train- ing,” Pascucci said. “You knew it of your staff. You can sleep soundly knowing we represent, meet with clients — with the types ing. would become apartments some- of city views that defense law firms On the other, his new HuntPath day.” support, and protect you and your business. typically enjoy — and a huge recep- venture will provide Internet-based Pascucci said he doubts Leader tion area for waiting clients. training for job hunting and space will feel different on weekdays, but “This is a big step up,” Ryan said. for job seekers to hunt work. he added, “I’m sure there’ll be a lot Meantime, Tom Johnston, pres- The 7,500 square feet he leased at of activity here on the weekends ident of the SearchPath Interna- IMG is almost double the space he when we’re (usually) not here.”

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 20 - 26, 2015

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION On the clock According to people who were in the room, something remarkable happened last August at the RNC summer meetings in Chicago. Among the items on the agenda was the formality of a vote on which city would host the 2016 Republican National Convention — a formality because the party’s site selection committee had already chosen Cleveland a month earlier. FROM THE PUBLISHER The remarkable came when Cleveland Mayor Frank Jackson, who made the trip to Chicago, was introduced. The 170 or so party officials in NFL’s choice looks much better now attendance rose from their seats and gave the mayor In 1998, I was working nights as a copy Dolan and football legend Don Shula. tured him in the suites during home a standing ovation. editor at The Plain Dealer. One summer Other would-be ownership groups/ games. There’s a good chance his face afternoon, as I was trudging up Rockwell owners included Bart Wolstein, Dick Ja- would have become just as linked to the Loyal Republicans saluting a Democratic mayor. toward the back entrance of the old cobs, Howard Milstein, Tom Murdough Browns and Cleveland as it was to pud- The gesture said a lot about the impression building, an entourage flew and, of course, Al Lerner. ding pops. around the corner, right to- Cosby’s celebrity at this Now think about what would have Cleveland made on the RNC and the collaboration, ward me. point was at its zenith. happened in the last year, as the world commitment and passion we showed during the In the middle of the pack Advertising Age, a sister learned of the revolting side of Cosby. was Dr. Huxtable. publication of Crain’s Cleve- Imagine the media circus, the protests, bidding process. I stepped aside, and, feeling land Business, reported the late-night jokes, the worst kind of at- We are now a year away from the convention, a pretty cocky that day, said, around this time that only one tention for our storied football team and historic moment in national politics, our city’s “Hey Coz!” person on Earth had a higher city. Imagine the damage. Bill Cosby looked over, public approval rating than But that didn’t happen. history and our city’s future. smiled and, without breaking Cosby: the pope. Lerner won the ownership derby, and It’s important to remember that winning spirit of stride, said, “How ya doing?” At a news conference intro- any thoughts of Browns-part-owner I was too surprised to an- JOHN ducing the ownership bid, Cosby were gone by the time the team collaboration in the months ahead, because for swer, and in fewer than 30 sec- Cosby suggested the Browns dashed on the field for their opening- many people in Northeast Ohio it’s going to get onds, the group was into cars CAMPANELLI might be able to use his most night slaughter in 1999. and gone. endorsed product — Jell-O — In Cleveland, we’ve been so focused difficult to do so. That was a fun summer in Cleveland, as part of their game plan: “If things get on the negative that we have named and So far, the presidential candidates and their especially with our sports teams. The In- rough, and the visiting team is marching immortalized our bad luck — “Red Right campaigns have thrown only jabs. These are, after dians sold 4 million shares of stock in a on us, that might be the time that we’ll 88,” “The Drive,” etc. We call ourselves highly publicized IPO. They also drafted spread it right wherever they’re run- cursed. all, the early rounds of a very long fight. But soon, a promising lefty out of high school ning.” No way. things will start getting ugly. named CC Sabathia. Our new football If the league had chosen the Dolan- Cursed are the women who found stadium was under construction. And in Cosby-Shula group, we can imagine themselves in Cosby’s path. As the race for The White House intensifies, we will a little more than a year, our expansion what would have happened. As much as the Browns and their own- be subjected to the worst of what our partisan Browns would be taking the field. Prob- Cosby, a pretty good fullback at Tem- ership have struggled and bumbled since lem was, we still didn’t have any players ple back in the 1960s, would have been a 1999, nothing has come close to a Cosby political culture can deliver: lies, personal attacks, or a coach … or an owner. regular at training camp, tossing the ball level of embarrassment for our team. distortions, accusations, dirty tricks, innuendo — the Cosby was doing a local media tour around, hamming it up with coaches So I guess I can now answer Cosby’s list goes on and on. that day as part of a potential Browns and players, and holding court on Amer- question: “How ya doing?” ownership group with Larry and Charles ica’s youth. Cameras would have cap- I’m feeling thankful. Both sides will shovel it, and both sides will get dumped on. Nastiness will take the place of civility. Collaboration among political rivals will become a TALK ON THE WEB rarity. Let’s not make that happen here. It’s important for Re: University of traditional education environments ness and inefficiencies are becoming where fiscal responsibility and student glowingly transparent. all of us, left and right, to remain above the muck. Akron budget cuts success, aligned with the organization’s Education in the 21st century must rev- The candidate we are all supporting is … I am left wondering how much of the mission and vision, have been after- olutionize education to be focused on Cleveland. budget deficit could be recouped, and thoughts. student success, supported with defined jobs saved, by foregoing the unpopular Traditional education organizations metrics and case study examples. In addition to setting a standard by hosting the rebranding campaign, particularly since are playing a catch-up game because Students and the public know that if best political convention in history, our goal should these campaigns have not proved posi- they have been asleep at the wheel for major dollars are to be invested in edu- tive for other institutions that have made decades, strategically focused on the cation, then education MUST provide a be to set the bar on civility, discourse and respect — similar moves. wrong things. bettered ROI for the student and the no matter how hot the rhetoric gets. If I were a gambler, I’d say a few hun- The only reason education exists is to public. It is the new paradigm. dred thousand in current and a few mil- This will be a very forced, very painful If we can somehow do it, a Democratic city in a empower students with success, and lion in future expenses could be put back with the skill sets to become sustained, process for traditional educators, but it’s Democratic county flawlessly hosting the into the coffers for the short term. productive members of society after long overdue. — Tom McDonald Republicans’ most important event — with class — — Concerned graduation. Traditional education has strategically lost sight of this, and with This puts new meaning into why UA we may just get an ovation from the nation. This specific and dramatic scenario decreased funding, along with relevant teams are known as the “Zips.” will be commonplace in publicly funded data collection, the glaring ineffective- — DKelly 20150720-NEWS--9-NAT-CCI-CL_-- 7/16/2015 2:42 PM Page 1

JULY 20 - 26, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 CRAIN’S SUMMER IN THE CITY PHOTO CONTEST “Scranton Flats in bloom” — By Ken Schneider Ken Schneider was taking a walk on the Towpath at Scranton Flats when he took this photo. Schneider, 36, is a project manager and writer at Canalway Partners. His prize includes gift cards to All City Candy, Malley’s Chocolates, Mitchell’s Ice Cream and Rocket Fizz.

Summer in the City is a contest inviting people to share their Cleveland photos. Weekly prizes include gift certificates to metro Cleveland venues, grocery stores and retailers at a value of $50 to $100. Three grand prizes will be awarded after Labor Day. Add images at crainscleveland.com/SITC.

TALK ON THE WEB (CONTINUED) Complimentary In-flight Wi-Fi Re: Budget cuts (cont.) The academic community rou- Although the “plan” states that tinely would wake up on a Monday no faculty will be fired during this The stadium cost $65 million and to the news that somehow the uni- most painful cost-cutting process, hasn’t been paid off. versity “lost” $15 million, $20 mil- the administration has already de- University president Scott Scar- lion, and so on. This recent $40 mil- cided NOT to rehire the 120 plus AIR CHARTER SERVICE borough makes $500,000, is receiv- lion deficit is just the latest in a very faculty who retired or left the uni- AIRCRAFT MANAGEMENT ing $350,000 in home “upgrades,” long line of losses. versity in disgust. $2,000 per month in a childcare Even though everyone knows the These jobs are gone like the Incas stipend, rebranded the school, university subsidizes the profound- from Machu Piccu — never to re- started a new “cadet program” and ly underperforming football pro- turn. In some departments, they are is giving student athletes full rides gram to the tune of over $8 million left with a skeleton crew of a few with stipends. a year, not to mention the albatross full-time faculty, and a cadre of Instead, the problem is being of a stadium to the tune of $3 mil- low-paid, part-time faculty who es- “fixed” by cutting jobs and benefits. lion to $5 million a year in mainte- sentially teach with their laptops No wonder our best faculty nance (this without a single sellout and cell phones since they have no members are leaving for other event in its short history), this most official places in the brick-and- schools and students are transfer- costly sports program remains an mortar university. ring to Kent State. untouchable. Full-time, university-trained fac- — the truth But what is most troubling to me ulty are the least expensive way to as an Ohioan, former faculty mem- grow fundamental allegiance to a I was at the University of Akron ber and one who understands the quality institution. Further, recruit- Northern Ohio’s Premier Air Charter Service for 35 years and active as a faculty critical need to build a real univer- ing and keeping these experts are member in Faculty Senate and the sity through its faculty, is the com- really the ONLY way to insure that a Serving the area with 10 Jets faculty union. I can say with all can- plete lack of attention to the one university survives. It is what keeps • 24-HOUR JET CARD NOW AVAILABLE • dor that UA has never, ever been factor that would fundamentally at- those institutions UA so often transparent in any way with its tract and keep students coming to wants to emulate in business. www.FlySkyQuest.com • 216-362-9904 budget/expenses. UA — a strong faculty first. — Dave Witt [email protected]

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383, Fax: (216) 694-4264, www.crainscleveland.com

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Editor: Elizabeth McIntyre Cartoonist/illustrator: Rich Williams Production assistant/video editor: ([email protected]) Steven Bennett ([email protected]) Events manager: Jessica Rasmussen Managing editor: Scott Suttell ([email protected]) Billing: Michele Ulman, 313-446-0353 ([email protected]) ([email protected]) Special events coordinator: Kim Hill Credit: Todd Masura, 313-446-6097 Sections editor: Amy Ann Stoessel ([email protected]) ([email protected]) ([email protected]) Marketing strategist: Michelle Sustar Customer service/subscriptions: Associate editor/Akron: Sue Walton ([email protected]) 877-824-9373 ([email protected]) Advertising director: Nicole Mastrangelo Crain Communications Inc. Assistant editor: Kevin Kleps ([email protected]) ([email protected]) Sports Keith E. Crain: Chairman Senior account executive: Rance Crain: President Senior reporter: Stan Bullard Dawn Donegan ([email protected]) ([email protected]) Real estate and construction Merrilee Crain: Secretary Mary Kay Crain: Treasurer Reporters: Account executives: Lindsie Bowman ([email protected]) William A. Morrow: Executive vice Jay Miller ([email protected]) Government president/operations John Banks ([email protected]) Chuck Soder ([email protected]) Technology Chris Crain: Executive vice president, Laura Kulber Mintz ([email protected]) director of strategic operations Dan Shingler ([email protected]) KC Crain: Executive vice president, Energy, steel and automotive Office coordinator: Denise Donaldson ([email protected]) director of corporate operations Tim Magaw ([email protected]) Dave Kamis: Vice president/production Health care and education Web editor: Damon Sims and manufacturing ([email protected]) Anthony DiPonio: Chief information Rachel McCafferty ([email protected]) officer Manufacturing and energy Digital strategy director: Nancy Hanus Thomas Stevens: Chief financial officer Jeremy Nobile ([email protected]) Finance ([email protected]) Mary Kramer: Group publisher Research editor: Deborah W. Hillyer Audience development director: G.D. Crain Jr. Founder (1885-1973) ([email protected]) Eric Cedo ([email protected]) Mrs. G.D. Crain Jr. Chairman (1911-1996) 20150720-NEWS--10-NAT-CCI-CL_-- 7/16/2015 3:33 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 20 - 26, 2015 GOING PLACES VERITIX Miller to area director of marketing and JOB CHANGES business development, Great Lakes continued from page 1 obviously do the purchasing phase million in sales on its platforms and Mall and Richmond Town Square. innovation. The market is hungry well, and are very good in the post- had processed 17 million transac- CONSULTING for it. We have a history of being event and discovery (phases). So this tions. Today, Gerace said Veritix TRANSACTION REALTY: Tim TOWERS WATSON: Gina Brian able to deliver it repeatedly, and is very much a deal where we’ve now has 54 full-time employees in Creek, Jehan Strickland and Josh to managing consultant. that’s what it’s going to take.” filled out the entire spectrum.” Cleveland, plus another 14 at its call FINANCE Stone to sales associates. AXS has stakes in Gimbal, which center in Dallas. Veritix’s revenue KEY PRIVATE BANK: Gary Poth TECHNOLOGY Double vision produces beacon technology that is grew 43% year-over-year in 2014, to head, family wealth. TRELLISPOINT CRM: Janae Fusco becoming a must for live events, and through June, the year-over- to business development manager. The new company is co-owned by and Bypass (technology that allows year growth was 58%. CBIZ: Heather Calabret and Rochelle Gilbert, AEG and Cirque du Soleil (an customers to order food and drinks A whopping 23 million transac- Blee to area managers, payroll. WARWICK: Joe Hesske to vice AXS partner). AXS CEO Bryan Perez from their seats). AXS also owns tions were processed on Veritix’s FINANCIAL SERVICE president, sales and marketing. will hold the same role, and Gerace Carbonhouse, a leading mobile and platforms last year (a 35% jump in CORRIGAN KRAUSE CPAS: Kelly S. will continue to lead Veritix’s boom- website development firm, and AXS two years), and the company has Linden to senior associate, tax services. BOARDS ing operation out of Cleveland. Advantage, a respected consumer now topped the $4.5 billion mark in Veritix-AXS still has to “create a marketing platform. Then there’s commerce in its nine-year history. SKODA MINOTTI: Brandon Ferris CATHOLIC HEALTH ASSOCIATION unified and functional organiza- AEG, which hosts more than 10,000 More than half that total — $2.5 bil- to marketing coordinator; Tim Porter OF THE UNITED STATES: Sister tion” that has “one vision and one annual events at its facilities, and lion — has occurred in the last 24 to staff accountant. Judith Ann Karam (Sisters of Charity culture,” Gerace said, but he ex- owns, operates or has relationships months. In the coming years, Ger- HOSPITALITY of St. Augustine) to chairperson. pects that to all get sorted out in the with 27 worldwide venues that were ace expects Veritix’s Cleveland em- coming months. QUAIL HOLLOW RESORT: Angus EPILEPSY ASSOCIATION: Peter ranked in Pollstar’s top 100 in 2013. ployee count to reach triple figures. Perez told Sports Business Jour- “I think it’s smart what they’re Gerace — who lends advice to as- O’Hara to executive chef. Nelson (Dollar Bank) to president; nal that AXS and Veritix “realized doing,” said Troy Kirby, the director piring entrepreneurs via Jump- Jeffrey Karlovec to vice president; MANUFACTURING pretty quickly how aligned our vi- of ticket operations at the Universi- Start’s mentoring program and is James Smith to treasurer; Debra OSBORN: Brian S. Smith to sion was.” ty of California, Davis, and the op- the chairman of the Cleveland Horn to secretary. marketing manager, North America. Merger discussions began almost erator of sportstao.com. “Coming chapter of Minds over Matter, a PLASTIC SAFETY SYSTEMS: John LAKEWOOD CHAMBER OF COM- immediately after Perez and Gerace up with a ticket platform is $2-3 nonprofit that gives guidance to Bassett to national sales manager. MERCE: Julie Warren (Erie Design) appeared on the opening panel of million, but the problem is a lot of students from low-income families to chair; Mike DeStefano to treasurer. Veritix’s 2014 Ticketing Symposium. people don’t have the investure to — said the merger with AXS “is a MARKETING “We’re both looking at each oth- get into the building or know how shining moment for technical en- C.TRAC INC.: Nik Gatzendorfer METROHEALTH FOUNDATION: Brenda K. Kirk (Hyland Software) er, going, effectively, ‘He just spoke to get into a locked agreement. trepreneurship” in Northeast Ohio. to solutions architect; Jessica my speech and I just spoke his,’ ” Now, Veritix has become the No. 2 He mentioned the successes of Schuster to UX developer. to chair; William L. Aamoth to vice chair, finance; Linda L. Bluso to vice Gerace said. “And they were much platform behind Ticketmaster.” TOA Technologies, which was ac- SONNHALTER: Andrew Poulsen chair, governance; Franziska H. more focused on the live entertain- The combined company pro- quired by Oracle in 2014, and Over- to public relations technician. Dacek to vice chair, outreach; ment side, and we were much more vides more competition, and it’s Drive, which was purchased by good for the industry, said Ken Rakuten in March. Veritix is the lat- NONPROFIT Robert A. DeAngelis to vice chair, focused on the sports side — so, chocolate and peanut butter.” Troupe, a senior consultant for est addition to that list. KOINONIA HOMES: Amber Gian- audit; Ann C. Lutz to treasurer and Gerace believes there are four SportsDesk Media (a Dallas digital “Veritix started in Cleveland and grande to social services manager. vice chair, investment; Thomas E. phases in what he calls the “fan life media analytics company) who grew in Cleveland,” Gerace said. Collins Jr., M.D., to vice chair, POLICY MATTERS OHIO: Cynthia cycle” — discovery, purchase, in- spent 19 years working in the tick- “We grew a sports tech business in nominating and board development. Connolly to resource development event and post-event. The ques- eting industry. Cleveland, and had fantastic manager. tions he said ticketing and enter- “It gives teams and venues other growth and a successful exit. I hope ST. PAUL’S EPISCOPAL CHURCH: AWARDS tainment companies must answer options,” Troupe said. what we’re doing is letting the next Rev. Jeanne A. Leinbach to rector. during the respective stages: Can I class of entrepreneurs see that it LAKEWOOD CHAMBER OF COM- find the event? Can I buy a ticket? ‘Shining moment’ can happen here repeatedly. It’s REAL ESTATE MERCE: Julie Warren (Erie Design) Can I enhance the experience? How been exciting to lead innovation ALLEGRO REALTY ADVISORS LTD.: received the Business Person of the can we enhance the experience? When Crain’s wrote an August and a really talented team here in Chelsea Kulhanek to associate, Year Award; Marty Foster (Conexo “AXS is really good at the discov- 2013 story on Veritix striking its big Cleveland. It can be done.” transaction advisory practice. Communications) received the ery phase, both with their internal deal with the Lions, the company It’s also far from finished. SIMON PROPERTY GROUP: Kate Outstanding New Member Award. technology and their investments, had 20 full-time employees in Veritix-AXS just needs a name. and is good at the in-event phase,” Cleveland. At the time, it was com- And a new Cleveland headquar- Send information for Going Places to [email protected] Gerace said. “With Flash Seats, we ing off a 2012 in which it had $901 ters (again).

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Above, Michael Johns Jr. of Johns-Carabelli Co., which has locations in South Euclid and Brook Park, works with a hand SET IN STONE tool to complete the process of adding a NE Ohio monument companies adapt to new innovations name to a headstone. (More photos of that By DOUGLAS J. GUTH Ukraine, uses a diamond-tipped etching tool to fashion de- [email protected] tailed reproductions of photographs as well as intricate im- process can be found ages of scenes and objects that meant something to the dece- on Pages 12 and 13.) Though the process of burying the dead hasn’t changed dent. much over the millennia, advancements in gravestone tech- “Everyone is unique, and we’re trying to capture that,” said PHOTOS BY REBECCA R. MARKOVITZ; nology have brought innovation to one of mankind’s oldest Dan Konstantinovsky, Vladimir’s son and a fourth-generation HISTORIC PHOTOS CONTRIBUTED traditions. proprietor with the family-owned enterprise. “The final de- BY MICHAEL JOHNS JR. Lasers, intricate computer design programs and electronic sign reflects the person rather than being something cookie- burial markers are among the upgrades in how the bereaved cutter.” tell the life stories of their departed loved ones. A number of Cleveland-area monument businesses are utilizing these de- velopments with varying levels of acceptance. In memoriam Classic Memorials, which moved last year from its longtime The human desire for remembrance is delving further into location in University Heights to a vacant property across the the space age thanks to a scannable, stamp-like image called street uses digital imagery to personalize headstones for its a quick response, or QR, code. The codes can be attached to clientele. headstones, allowing visitors with a smart phone and the Company founder and president Vladimir Konstantinovsky proper app to boot up a web page with text, photos and video has a computer in his office that feeds into a monitor on the about the deceased. wall. Onscreen is a program Konstantinovsky helped develop, “This is something that will be used by the younger gener- featuring a rudimentary headstone that can be fully cus- ation,” Vladimir Konstantinovsky said. tomized for font, color, granite type and what type of image Milano Monuments, meanwhile, utilizes computer design will be engraved onto the rock. Konstantinovsky can even to create highly detailed headstones and gravestones. switch backgrounds from flat field to lake to wooded area so Owner Jim Milano is a proponent of MonuVision, a custom clients can determine how the stone will look in its natural monument program that offers Photoshop-quality renderings state. for families in search of a lasting and meaningful memorial. “This type of personalization is very new,” Konstantinovsky Designs taken from MonuVision are engraved or hand-etched said. “Half of our customers want something customized.” onto stone in a cavernous manufacturing facility at Milano’s Konstantinovsky, a master engraver originally from See STONE, next page 20150720-NEWS--12-NAT-CCI-CL_-- 7/16/2015 3:04 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 20 - 26, 2015 STONE continued from previous page feller’s obelisk and Wade Memorial Cleveland headquarters on Brook- Chapel at Lake View Cemetery. “It park Road. can make it so you don’t need to The facility carries, among other understand the creative process.” innovations, a laser etching ma- Diamonds, however, are used at chine and a diamond-tipped stone- Johns’ 136-year-old monument cutting saw. A staff that includes business. He and his employees cut trained craftspeople and a certified stones with diamond-affixed saw memorialist well acquainted with blades and buff the results with industry trends ensure the personal 3,000-grit diamond polishing pads. touch established by Milano’s fa- Johns has heard industry rumors ther, Vincent, when he founded the about fiberglass, polymers and oth- company in 1969. er materials getting added to stone, “For me, it’s about whatever’s but not many clients will takes risks best for the customer,” Milano said. on products that should ostensibly The monument manufacturing last forever. company plans to engage patrons “The biggest challenge I face is further through blog postings detail- getting customers to understand ing the memorial crafting process. the process,” Johns said. “We need Most families looking for a stone them to understand the timeless- do so with little experience, making ness of what they’re purchasing, the online resource a natural exten- and build a cost-effective monu- sion of the business, Milano said. ment around those particular dy- “The blog is a platform that en- namics.” ables us to share our knowledge,” he said. “We’re creating a whole new fabric of information on the ‘Customizing every While technology can speed up certain steps in creating a memorial, some things still require a human touch. For web to improve our industry.” step of the way’ example, workers at Johns-Carabelli Co. in South Euclid (clockwise) hand-carve letters to match an existing Fourth-generation stonecutter Keeping the cemetery industry headstone, perfectly center a stencil before it is sandblasted and control a sandblaster by hand for certain projects. Michael Johns Jr., owner of memo- informed of new technologies and rial maker Johns-Carabelli Co. in practices is one of the roles of the South Euclid, has been purposely International Cemetery, Cremation slow to embrace technologies like and Funeral Association, a Virginia- laser engraving, which he maintains based organization composed of can never replace the pinpoint more than 9,000 cemeteries, funer- artistry of a hand-held etching tool. al homes and related companies. With laser etching, a beam is di- Laser engraving and scannable rected at a high-quality black gran- electronic codes may not be inte- ite gravestone. The laser, working grated into the business plan of like a printer, peels away surface every one ICCFA’s members, but rock to form a grayscale image on executive director Bob Fells is glad the black stone, which is perfected these options are available. Laser by a worker employing a razor blade reproduction of photographs, for or other tools. one, has been on the market for Johns-Carabelli uses lasers spar- longer than two decades, and will ingly, mostly for projects with either likely last for years more should the large amounts of lettering or those public so choose. with very small lettering. “The people tell us what they Otherwise, the company owner want, so if we’re doing our job, prefers to craft headstones by hand we’re offering them the best choic- in his on-site machine shop. Johns, es to consider,” Fells said. who specializes in lettering, feels Konstantinovsky of Classic mostly the same way about com- Memorials attends industry semi- puter drafting of gravestones. nars to stay on top of the monu- Though computers are handy for ment innovation game. making quick corrections, they have The lifelong engraver believes nothing on a studious artisan’s eye technology, used with care, won’t EARN YOUR when it comes to understanding detract from an industry built on spatial relationships between the preservation of memories. carved letters, Johns contends. “We’re still customizing every “Technology is good, but it can step of the way,” Konstantinovsky cut both ways,” said Johns, part of a said. “As a business you just can’t be MBA legacy that built John D. Rocke- blended in with everyone else.” Executive MBA WAY Global Accelerated MBA YOUR Mobile Accelerated MBA

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JULY 20 - 26, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 MONUMENTAL WORKS AT LAKE VIEW CEMETERY

Wade Memorial Chapel Wade Memorial Chapel was built in memory of Jeptha Wade, founder of The Western Union Telegraph Co. and first president of Lake View Cemetery. The inside of the chapel was totally designed by Louis Comfort Tiffany and The bronze doors weigh more than Electric lighting inside the his studios. 4 tons. chapel was a prerequisite set by A stained glass window, The Flight The Carabelli Co. built the building in Tiffany in order to prevent damage of Souls, helps bring light into the 1899, and it received a $1,000 bonus to the mosaics from the oil lamps chapel’s interior. for a job well done. of the day.

Rockefeller Monument The Rockefeller Monument was designed and erected by the Carabelli Co. in 1898. It is made up of four pieces totaling nearly 66 feet in height and 181 tons. The granite was so large it came to Cleveland from Barre, Vt., on two flat cars equipped with turntables in order to negotiate the turns on the rail line. Sometimes, like above, a name needs to be added to an existing headstone. First, a rubbing of the headstone is made and a stencil for It is said that 20 teams the new name is hand drawn, hand cut and then applied. After a light of horses were used in the sandblasting, the stencil is removed and the stone is finished by hand, erection of the monument. which allows a craftsman to mimic the slope and shape of the existing letters, have better control of letter depth and carefully blend the edges Sources: Michael Johns Jr.; of the stone where new work meets the old. www.lakeviewcemetery.com Talk to a Decision Maker.

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TAX TIPS PETER A. DEMARCO ADVISER JAKE DERENTHAL Case could result in Ohio tax challenge SAFE financing alternative f A recent decision by the U.S. and will owe Ohio only $100. Your early stage company needs Supreme Court could have serious Ohio does not collect county in- money to grow, so what are your implications for Ohio-based tax- come taxes, as in the Wynne case, options? payers who also pay income taxes but Ohio cities collect income taxes Historically, small business own- in other states. from residents of their municipalities ers in this position apply for an SBA The Supreme Court case sur- and non-residents doing business loan only to find that, even if your rounds taxpayers Brian and Karen within their cities. Those city tax col- company qualifies, you are re- Wynne, a Maryland couple who col- lection processes, as with Maryland’s quired to sign a personal guaranty, lect their income through a pass- county tax, do not give credit for in- which means you’re stuck repaying through S corporation that earned its come tax paid to other states. it even if the business fails. income in several different states. Does this mean Ohio’s tax rules Another option — you could sell The couple paid income tax to the are about to change? It’s too soon to a chunk of equity. various states where the S corp say. But that means you will have to earned income, then claimed a cred- The Supreme Court decision is give up a little (maybe a lot) of it against the Maryland state and specific to Maryland, so it doesn’t management control, not to men- county income taxes as a result of immediately compel Ohio authori- tion that the legal and accounting paying the various out-of-state taxes. ties to act. It would take a legal chal- paperwork involved can be over- The Wynnes learned their credit lenge to arise from within Ohio to de- whelming. Peter A. DeMarco is vice president and Jake Derenthal is a partner in the cor- against Maryland state income tax termine case law that would be In recent years, many startup director of tax services at the regional porate transactions group of Cleveland- was permitted, but the credit against specific to Ohio. founders have used convertible accounting and business consulting based Walter | Haverfield LLP. the county income tax was denied. It’s important to note that busi- debt offerings to raise seed financ- firm of Meaden & Moore, headquar- Seeing that as a form of double taxa- nesses organized as C corporations ing as a bridge between formation tered in Cleveland. tion in violation of the dormant likely would remain unaffected, even and pricing a preferred equity “Se- gained momentum and now are Commerce Clause in the U.S. Consti- if an Ohio taxpayer were to mount a ries A” round. making their way to the Midwest. tution, the Wynnes challenged the with Ohio? legal challenge. C corporations do While convertible notes are The key attraction of a SAFE is its decision in court and won. Just as in Maryland, Ohio gives not pay income tax, but instead pay great under the right circum- simplicity — the contract is only a Officials in Maryland appealed all credit to Ohio resident taxpayers a commercial activity tax based on stances, there is now another op- few pages long — and its easy con- the way to the U.S. Supreme Court, who pay income tax to other states their gross receipts. That is entirely tion known as Simple Agreement version into equity. where justices recently ruled 5-4 that through pass-through entities, such different from an income tax. for Future Equity, commonly SAFEs can be structured to offer Maryland’s tax treatment was un- as S corporations, limited liability Some legal experts believe a chal- known as SAFE. investors and entrepreneurs the ad- constitutional. The Court said such a companies, partnerships or sole pro- lenge in Ohio is likely for two rea- SAFEs are based on the principle vantages of convertible notes, such system discriminates in favor of in- prietorships. These types of entities sons. First, the fact pattern around that the investor provides funding as the option to give investors a dis- trastate over interstate economic ac- do not pay tax at the corporate level, Maryland’s system of taxation is sim- to the company today in exchange count to their purchase price for the tivity in violation of the Commerce but pass their income directly on to ilar to Ohio’s in many ways. for the right to receive equity in the next round of equity securities; the Clause. shareholders, who are responsible Second, the number of dollars that future. ability to add a valuation cap setting In the view of the majority of jus- for reporting the income and paying could be affected is likely significant, While still relatively unknown a pre-negotiated maximum valua- tices, Maryland’s denial of the coun- the tax. as it is not uncommon for an Ohio outside of active startup markets tion at which the investor’s equity ty-level credit amounts to a tariff If such a taxpayer earns an income taxpayer to earn income via a pass- on the coasts, SAFEs have proven will be issued; and the right for in- against residents who earn income of $1,000 through a partnership, for through entity that does business out an effective and easy method of vestors to participate with founders through interstate commerce. The example, and pays tax to Pennsylva- of state. raising money for early stage com- in the event of a change of control if state is now busy processing claims nia of $300, Ohio will consider that If an Ohio taxpayer similar to the panies. the company is sold. and issuing refund checks to thou- $300 paid to Pennsylvania in deter- Wynnes challenges the denial of a lo- The SAFE concept was created in Most investors will like that the sands of taxpayers who generated in- mining the tax ultimately owed to cal tax credit in an Ohio court, the 2013 and popularized by Y Combi- SAFE requires the company to issue come in other states and were not Ohio. If Ohio income tax would have Wynne Supreme Court decision nator, a Silicon Valley technology them equity upon the first sale of given the same credit. been $400, the taxpayer will get cred- might well factor into the case as a le- seed fund and accelerator. preferred shares without the require- So what does all of that have to do it for the $300 paid to Pennsylvania gal precedent. Since then, SAFEs have steadily ments typical in convertible notes

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JULY 20 - 26, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 e for early stage companies that the transaction reach a certain Another common scenario MANAGE YOUR “qualifying transaction” threshold caused by maturity dates compels prior to triggering conversion into company founders to engage in equity. time-consuming and expensive ne- However, what sets SAFEs apart gotiations with investors to extend BUSINESS, NOT from the convertible note fundrais- the note maturity date, which takes ing model is the ability to take ad- their focus away from growing the vantage of the future equity offering business. while avoiding the legal and struc- Using a SAFE allows company YOUR TECHNOLOGY. tural requirements of issuing debt. founders to make decisions about In particular, a SAFE does not in- future rounds of financing in the clude an interest rate or maturity best interest of the company, which date. in the end will benefit investors. On its face, the lack of interest or As you can tell, the SAFE instru- SMSM maturity date may sound scary to ment arguably “favors” the issuing COX COX BUSINESS BUSINESS INTERNET INTERNET 15 XX investors accustomed to calculating company and its founders. This potential returns that include inter- makes it an option best suited to est and have a fixed outside repay- startups with a ready pool of fund- ment date. ing lined up. $ 99 Although, in practice, most inter- For businesses that are not as est earned by investors on convert- “hot,” convertible notes, equity and * ible notes merely accrues and is un- other traditional financing options mo paid until conversion (or is will continue to play an important converted alongside principal), so role. 69 adding a favorable discount rate in The SAFE represents the latest place of interest will assure in- step in the ever-evolving market- For 12 months with a 2-year agreement* vestors they are being adequately place of early stage company fund- compensated for the risk involved ing. in seed-round or angel investing. Due to the infrequency at which Consider, also, that the maturity SAFEs are currently being used in CALL 866-791-2688 | VISIT COXBUSINESS.COM date has little value if the company Ohio, it is critical that investors and is not able to repay the debt. founders, alike, involve experi- In many cases, in fact, the exis- enced legal counsel early in the tence of a maturity date will force process. * Offer valid until 8/30/15. Minimum service term, equipment, installation, fees, taxes, and other restrictions may apply. See coxbusiness.com. an early stage company to pursue Many unknowns around the ©2015 Cox Communications, Inc. All rights reserved. equity financing simply to compel SAFE process, including the tax and conversion of outstanding notes securities law consequences, can prior to maturity, even if it’s not the best be addressed with strategic le- best time to do so. gal advice.

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16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 20 - 26, 2015 Live Internet music station has local beat Cleveland has a new live and local playlist peppered with regionally WMJI host Ravenna Miceli spinning Cleveland radio alums create oWOW as Internet radio station that champi- based bands and is partially funded tunes, a far more agreeable situa- ons its North Coast origins with nos- by a community bank as well as tion for a station serving a com- talgia-fueled hometown pride. grant from the City of Cleveland. bined market of 17 counties within alternative to corporate rock Called oWOW Radio, the station “Locally owned, operated and Cleveland, Akron, Canton and was launched by a former WMMS programmed” is not just a slogan Youngstown. By DOUGLAS J. GUTH, [email protected] program director, and it carries a that’s proudly trumpeted on the Live musical performances are station’s website, but it is a selling among the plans oWOW has to point meant to reach ears along build the excitement its founders with Cleveland-area advertisers remember from rock radio’s hey- keen on snagging oWOW’s growing day. listenership. To get the word out, the station “Our challenge is in letting peo- has partnered with area arts and ple know we’re here, but there’s a culture events including Wade Oval buzz developing around what we’re Wednesdays. doing,” said John Gorman, oWOW During a recent night out at the Media LLC’s chief content officer popular free concert series, station and a Cleveland radio mainstay for- employees gave out food truck merly of WMMS. vouchers to visitors who down- loaded oWOW’s app onto their A love for timeless music smart phones. Inventive hyper-local marketing Nestled in its new 1,600-square- will be key moving ahead, particu- foot production area and studio larly in a market where the shop-lo- th space in the 78 Street Studios cal movement has become an in- complex, oWOW is gaining traction creasingly relevant lifestyle choice. in a diverse and deregulated indus- “We’re creating a community try, its founders maintain. around local ownership,” said oWOW’s staff-curated format is oWOW director of sales and mar- Experience the Power labeled adult contemporary rock, keting Jim Marchyshyn. and can be accessed via the sta- The digital station also provides tion’s website player, a download- promotions and on-air mentions to able app or Internet-connected car such Cleveland companies as Mo- ® stereo. torcars Honda. Prime visibility of Being Understood Tune in for Friday Night Live, across oWOW’s social media plat- airing Fridays from 5 p.m. to mid- forms can be another attractor for night, and you may hear a little- area businesses wanting to harness known version of Chuck Berry’s an audience, said Steve Bossin, “Reelin’ and Rockin’” recorded live oWOW’s director of business devel- from London. opment. A random listen to oWOW’s 12 “We have an opportunity to step hours of daily live programming, in and take a piece of that advertis- meanwhile, may garner a Cleve- ing,” Bossin said. land performer like Welshly Arms. Neighborhood group University Rising national acts including ZZ Circle Inc. invited oWOW to its Ward also get airtime on oWOW. Wade Oval concert event to give the The idea is to give consumers station exposure. that old-school feeling of pleasur- UCI president Chris Ronayne is able surprise when hearing a cool impressed by the station’s home- new song on the radio, said Gor- grown efforts to innovate while fur- man. ther bolstering the region’s hard- oWOW’s approach, delivered by rocking reputation. a bevy of live personalities with tra- “(UCI’s) quest is to help out area ditional radio roots, is meant to businesses that have the potential jumpstart a regional radio industry to scale,” Ronayne said. “The mix largely dominated by nationally of music and innovation from When you trust the advice you’re getting, you know programmed stations churning out oWOW fits the essence of who we computer-created song logs. are.” your next move is the right one. “Good music doesn’t have a time The station has been steadily stamp,” Gorman said. picking up listeners since launch- “We play stuff that makes you ing in mid-March, Gorman said. That’s what you can expect from McGladrey: a team say, ‘Hey, I know that song.’” According to figures measured by John Chaffee, who helped steer an outside consultant, 10,680 lis- that can help middle-market executives navigate the WMMS’s creative direction as pres- teners are tuned in to oWOW ident of the Malrite Communica- weekdays from 9 a.m. to 2 p.m. opportunities and challenges they encounter here tions Group, recently joined People are listening for longer, in Ohio, across the country or around the world. oWOW as a consultant. too, keeping the digital dial locked The station’s warm, personable to the station for over an hour at a vibe, derived from the days when time. In other words, anywhere their businesses take them. radio icon Murray Saul would vo- oWOW officials are more than ciferously instruct Buzzard fans to pleased to be establishing such a That’s the power of being understood. “Get doooooooowwwn!” is some- dedicated listener base after bare- thing many modern listeners are ly four months on the air. “We see still keen on connecting with, he a consistent growth curve, in terms To learn more about how McGladrey can help your said. of both new listeners and time “It reminds us of listening to spent listening,” Bossin said. organization, call our Cleveland office at216.523.1900 . rock and being in Cleveland,” he “We’re also seeing minimal listen- said. “The station has to touch peo- er drop-off in terms of people com- Or go to www.mcgladrey.com/growingohio. ple in as many ways as possible.” ing to oWOW for the first time, then not returning regularly.” Getting creative Gorman sees a future that in- cludes additional stations sprout- Many traditional radio venues ing from the oWOW model. have lost the distinct personality Success will come as long as oWOW is emphasizing, station offi- there is an audience clamoring for cials said. a C-town born and bred alternative Gorman said he has walked to corporate rock. through empty studios that echo “Music used to be the sound- © 2015 McGladrey LLP. All Rights Reserved. with voices coming from other track of our lives,” Gorman said. cities. “We’re putting together a format In contrast, oWOW has former that people will stick with.” 20150720-NEWS--17-NAT-CCI-CL_-- 7/17/2015 11:50 AM Page 1

JULY 20 - 26, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17     

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18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 20 - 26, 2015 RNC continued from page 1 manuscript collections of Garfield, visitors spend their free time. fer admission discounts or other least four hotels in his county will The idea is to serve up a few ap- Republican kingmaker, senator “We want to understand as special incentives to a group of be hosting convention visitors, so it petizers — the Rock and Roll Hall of and Cleveland businessman Mar- much as we can about how visitors University Circle museums, such at has hired a consulting firm and Fame and Museum on the lake- cus Hanna and President William will behave that week,” he said. the Cleveland Museum of Art, the raised $90,000 to develop a plan to front, the Cleveland Museum of Art McKinley, a native of Niles. “We’re talking to people who at- Museum of Contemporary Art and get visitors to spend some of their in University Circle, and Lawnfield, In addition, the historical society tended prior conventions to find the Cleveland Natural History Mu- off time in Lake County. the Mentor home of Republican is preparing a series of short videos out how much free time they had seum. “It’s been a great exercise,” he President James A. Garfield — to on subjects like Hanna, the home- and what they did with it. ‘Did you said. woo convention visitors back for a town presidents and other political play golf, go fishing, go to the art “We’ve got parks, golf courses, full-course, family visit. leaders that can be used by the me- museum?’ The more we know how “We want to understand as the shoreline. We want people to If all goes as planned, Republi- dia, or by the convention itself, dur- a visitor typically behaves, the bet- much as we can about how spend money in Lake County.” can and media visitors will have a ing lulls in the action. ter we can prepare.” visitors will behave that Malecek said the county will smorgasbord of destinations and The short videos are designed so Falcone-Hall said institutions week. ... The more we reach out to the Utah delegation, events to choose from when the fo- they can be knit together into a ranging from Lake View Cemetery, and perhaps several others, that cus is not on the evening conven- longer program. home to the James A. Garfield know how a visitor typically might have Mormon contingents, tion sessions. “We’re hoping that some of this Monument, to the cultural institu- behaves, the better we can to remind them of the Kirtland “This is just very exciting to us,” historical content will be interest- tions of University Circle and the prepare.” Temple, the first temple built by said Kelly Falcone-Hall, CEO of the ing to them,” Falcone-Hall said. National First Ladies’ Library in what became the Latter Day Saint – Michael Mulhall Western Reserve Historical Society. “It’ll be easily digestible.” Canton, are thinking about con- vice president of partnerships, movement. vention week. “We would have done something Destination Cleveland However, the usual fare of dance, anyway because it’s an election Open wide University Circle, in particular, theater and musical entertain- year, but the coming of the conven- will be opening its doors wide for ments of Playhouse Square won’t tion has been an accelerator for the Falcone-Hall and Karen Gahl- convention visitors. Those institutions and others be available to visitors, though they historical society. Mills, executive director of Cuya- “We’re hopeful that delegates, could host caucuses, cocktails par- may attend an event in one of the “It’s going to be about raising in- hoga Arts and Culture, the county their families and friends will find ties or other convention meetings. district’s historical theaters. terest in our collections and the agency that funds the arts, are co- their way up the HealthLine (tran- Ronayne said he’s also thinking Cindi Szymanski, brand commu- stories they tell.” ordinating an effort to provide out- sit line) to University Circle,” said about putting on a “special, star- nications manager at Playhouse The historical society has a deep of-towners with sightseeing oppor- Chris Ronayne, president of Uni- spangled extravaganza,” as part of Square, said the theaters aren’t collection of political memorabilia tunities for every taste, with versity Circle Inc. UCI’s regular summer “Wade Oval booking any shows for convention focusing on Ohio’s eight presi- support from Destination Cleve- “There are a lot of daytime op- Wednesday” outdoor concert se- week. dents, especially Garfield, whose land. portunities for delegates and their ries. “We anticipate hosting some Lawnfield home is a repository of Michael Mulhall, Destination guests.” The outer counties also are pur- convention-related events so until historical society papers, memen- Cleveland’s vice president of part- Ronayne said his nonprofit de- suing convention goers. we know more of what is expected tos and furnishings. nerships, said his organization has velopment group is working on cre- For instance, Lake County Com- of us, we can’t plan anything else,” It also has deep photograph and been researching how convention ating a “Circle Pass,” that could of- missioner Kevin Malecek said at she said.

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Tour 875 sq. ft. at Westlake's RESIDENTIAL PROPERTIES St. John Medical Center. OFFERED WITH A PUBLISHED Call Sandra M. Johnson, RELOCATION FORCES IMMEDIATE SALE! RESERVE PRICE OF $125,000 Realtor, Howard Hanna Real 2,318 SF RESIDENTIAL HOME BIDDING TO COMMENCE AT: Estate Services. 216.999.1093 1443 ELMWOOD, LAKEWOOD, OH 44107 $90,000 5 Bedroom, 2 ½ Bath, 2-story colonial with 2 ½ car garage. The home also includes a full basement, central A/C, 2-fi replaces and spacious outdoor patio. Located in an established residential community the home has been recently updated including Kitchen, Baths, HVAC, roof, etc. Open House Dates: Sundays, July 26, August 2 and 9 from 12 Noon -1:30 PM RETIRING OWNER ORDERS IMMEDIATE SALE! OFFERED WITH A PUBLISHED RESERVE PRICE OF ONLY: 2,144 SF DUPLEX - INVESTMENT OPPORTUNITY! $15,000 CLASSIFIED 2029 WEST BLVD., CLEVELAND, OH 44102 Currently rented for $700/Month. This 2,144 Sq. Ft. Duplex consisting of 4 Bedrooms, 2 Baths on approximately .8 acres is a terrifi c opportunity for homebuyers and BUSINESS SERVICES investors. Located in an area of wide boulevards, tree-lined streets, old-fashioned front porches, Cleveland doubles, newly constructed townhomes and lofts. Open House Dates: Sundays, July 26th, August 2nd and 9th from 2:00 PM to 4:00 PM C. W. JENNINGS INDUSTRIAL EXCHANGE AUGUST 27th AUCTION Global Expansion Consulting FLYNN Construction • Acquisitions ENVIRONMENTAL BIDDING TO PARTNERSHIP DISSOLUTION FORCES IMMEDIATE SALE! COMMENCE AT ONLY: Exporting • Financing UST REMOVALS • REMEDIATION 150 +/- ACRE DEVELOPMENT SITE $750,000 DUE DILIGENCE INVESTIGATIONS 150 +/- I-271 & SR-8, MACEDONIA, OH 44056 ($5,000/AC) (855) 707-1944 (800) 690-9409 Acres Located near I-271 and SR-8 and bordered by Highland Rd., Empire Pkwy and Capital Pkwy. 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20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JULY 20 - 26, 2015 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Meat the new tenant there,” he said, as Fox Sports Ohio also will Starting at 8 a.m. on Monday, July 20, the JULY 13 - 19 occupy space in the atrium. — Stan Bullard chamber is launching with a 100 in 100 at 200 Public Square Membership Campaign. The goal is to get at The big story: The A big name is about to fill a big, long- Presidents’ Council’s next least 100 businesses to join the chamber in fundraising campaign for the empty space at downtown Cleveland’s 200 innovation: its own chamber its first 100 hours. For information, visit Cleveland portion of the Re- Public Square office building. ThePresidentsCouncil.com or call (216) publican presidential nomi- Ruth’s Chris Steak House is bound for the The Presidents’ Council of Cleveland is 771-8702. — Rachel Abbey McCafferty nating convention has hit $39 former Frank & Pauly’s space on the Superi- starting its own chamber to help connect million, about $25 million or Avenue side of the skyscraper’s atrium, the community with African American-run Singing the praises of from the goal as the 2016 Norfolk, Va.-based building owner Harbor businesses and to connect those businesses music and manufacturing Host Committee begins the Group International announced. Ruth’s with resources in the area. national portion of the cam- Gilbert Hospitality Group, the publicly traded own- The Presidents’ Council is a group of CEOs Rube Goldberg would be proud. Same paign. David Gilbert, presi- er and franchisor of 146 Ruth’s Chris loca- of some of the largest African-American- goes for the members of the band Daft dent and CEO of the committee, said it has se- tions, confirmed the plan. owned businesses in Northeast Ohio. The Punk. Two Cleveland-area companies — cured commitments for 12,000 of the 16,000 Michael O’Donnell, CEO of Ruth’s Chris, council advocates for inclusion of African RGI International and Hy-Tech Controls — hotel rooms it has pledged to the Republican Na- said in an email, “Ruth’s Chris Steak House American-owned companies in the business designed a crazy musical contraption called tional Committee to have available. Steve King, is excited to bring our tradition of hospital- community, said Michael Obi, CEO of Spec- The Music Factory. It’s on display at the Dis- chairman of the Republican National Commit- ity and quality of service to Cleveland. We trum Global Solutions LLC in Richmond covery World Science and Technology Cen- tee’s Standing Committee on Arrangements, look forward to helping more guests create Heights and a member of the council. The ter in Milwaukee. said his committee and the local host committee memories on 500-degree sizzling plates.” Presidents’ Council Foundation runs the PC The device lets visitors compose music are making “excellent progress” in planning for Jim Vallos, managing director of 200 Pub- Scholars program for high school students and turn it into a visual display. As music the convention, which runs July 18-21, 2016. lic Square owner Harbor Group, said his and the Emerging Entrepreneurs program. plays, colored lights flash and colored balls company had been waiting for the right op- The group has trained more than 100 en- move through the machine in a way that Transition time: Aluminum products pro- portunity to fill the space. “We think it’s a trepreneurs, entrepreneurs who can now might remind you of the board game Mouse ducer Aleris Inc. of Beachwood has a new CEO as great opportunity for the building,” he said. become part of the Presidents’ Council Trap. Steve Demetriou, its chairman and chief execu- “It will complement the tenant roster. It re- Business Chamber. “We need to continue to All that craziness is designed to get young tive since the company’s launch in 2004, decid- ally does not get any better than this.” reinvent ourselves,” said Obi, the chamber’s visitors interested in engineering and au- ed to leave the company for a new job. Aleris ap- Although the Winter Park, Fla.-based chain chairman. tomation. That goal is important to the pointed Sean Stack as CEO to replace confirmed committing to the space, a In the past, people have come to the Pres- sponsor of the exhibit: Rockwell Automa- Demetriou, effective immediately. Stack most re- spokesman declined to provide details on the idents’ Council for advice on African-Ameri- tion, which is based in Milwaukee and has a cently served as executive vice president and opening date and store size. However, a pre- can-run companies to work with on projects. large presence in Northeast Ohio. CEO of Aleris North America. Meanwhile, Jacobs sentation for investors said the company in- Obi said the council was able to help on an RGI, of North Ridgeville, has built trade Engineering Group Inc. of Pasadena, Calif., vests at least $3.5 million in each location. The informal basis, but the chamber will give show booths and other interactive exhibits named Demetriou as its new president and CEO. sites generate about $4 million yearly in sales. more structure to the process with a member for organizations such as Rockwell, Lubri- Demetriou will start in his new role with Jacobs Brian Hurtuk, manager of the Cleveland database. There are also plans for in-person zol, NASA and the Great Lakes Science Cen- on Aug. 17. Aleris said Demetriou will work close- Colliers International office, said the restau- meetings and retreats for members. ter. Hy-Tech, an automation systems sup- ly with Stack over the next few weeks to ensure a rant will expand into the building’s atrium The chamber will be open to companies plier in Oakwood Village, developed the smooth transition. and factor in the planned renovation of the of any size, and the companies don’t have to wiring and controls for the machine. Rock- indoor and outdoor retail-oriented section be African-American-owned to join. The well products are used in the machine, and Legal maneuvers: Joseph Castrodale, a of the building. companies just need to believe in the mis- engineers from the company helped design prominent former partner and chairman of the “It’s going to be a whole new ballgame sion, Obi said. and built the machine. — Chuck Soder business litigation practice for law firm Ulmer & Berne LLP, was named vice chairman for Be- nesch. Castrodale will be stationed in Benesch’s Cleveland office and now chairs the firm’s litiga- MILESTONES BEST OF THE BLOGS tion department, the company’s largest group. He also brings with him three partners from his Excerpts from recent blog entries college degree, according to a new study former business litigation team at Ulmer: An- COMPANY: Cedar Brook Financial on CrainsCleveland.com. from Trulia. drew Fiorella, Greg Phillips and Yelena Boxer. Partners LLC, Mayfield Heights “In those markets, a household with a col- Castrodale brings to Benesch a sizable book of lege degree isn’t making that much more th Off track business, though he would not disclose a dollar OCCASION: Its 10 anniversary than a household without,” said Ralph amount. Cedar Brook this Cleveland and Elyria have two of the McLaughlin, Trulia’s housing economist, in month is celebrating a “saddest Amtrak stations in America.” a story on CNNMoney.com. “The burden End of an era: Daniel Klimas, president of Lo- decade in business as an So said CityLab.com in a piece filled with that student debt brings to a household with rain National Bank for the last decade, will part independent wealth pictures and regret. a college degree makes it slower to save for with the bank when it merges next month with management firm. Kriston Capps wrote that “regrettable a down payment.” Northwest Bancshares Inc., the parent company Its 75-plus profession- transit hubs” can be found “all across the A home “is the biggest purchase most of Northwest Savings Bank. Klimas had intended als deliver services in- nation,” and he put them in a few distinct people will make, and there’s been a lack of to remain with the combined company as region- cluding comprehensive categories. buying activity among Millennials,” accord- al president and market leader for Northwest’s Cleveland’s Amtrak outpost belongs to a ing to the story. “Student loan debt tends to wealth strategies, invest- Glubiak Ohio franchise upon the deal’s Aug. 14 consum- group he calls “the fail station,” which in- get blamed. While going to college usually mation. However, Klimas said in an interview with ment and insurance ad- vice, retirement plan consulting, and group cludes Amtrak stations in Detroit, South means higher lifetime earnings, hefty stu- Crain’s that Northwest president and CEO Bend, Ind., and Savannah, Ga. dent loans can erode savings and make it William Wagner “indicated that he and the man- benefit programs to physicians, corporate executives, privately held business owners Capps noted that Tower City Center, harder to accumulate a down payment.” agement team didn’t feel I would necessarily be once Cleveland Union Terminal, “is the hub Trulia estimated that people with a col- the best fit for running the region going forward.” and families. Cedar Brook is headquartered in Mayfield for the Regional Transit Authority’s rapid- lege degree need 5.9 years in Akron and 6.1 Heights and has offices in Strongsville; West transit lines (and a multi-use commercial years in Cleveland to save for a 20% down A future together?: The Cuyahoga County and civic center to boot). That’s not a bad payment for a house. For people without a Board of Elections received about 1,600 signa- Bloomfield, Mich.; and Bonita Springs and Palm Beach Gardens, Fla. Its managing deal; arguably, city rail is a better use for a college degree, those figures are 5.7 years in tures on a petition from East Cleveland citizens central train station than passenger rail, Akron and 5.9 years in Cleveland. seeking to initiate a process that could end up principal is William Glubiak. and the history supports the city’s decision Still, Ohio is a pretty affordable option for with the financially troubled eastern suburb be- For information, visit to make the move. But Lakefront Station … millennial buyers. ing annexed by the city of Cleveland. However, it www.cedarbrookfinancial.com. the Cleveland terminal that Amtrak began “Ohio is a state that if you want to buy a could take months or even years of negotiations using in 1977, leaves something to be de- house, it’s going to be your best shot at do- and managing a complicated state-mandated COMPANY: Nino’s Fine Italian sired.” ing so,” McLaughlin said. “You are going to process before an annexation could be put be- Cuisine, North Ridgeville Worse, Elyria was grouped in the “not- be able to do it faster than any other state in fore voters. The elections board first must verify even-a-station station” category. the country.” that the petitions have at least the 559 valid sig- th OCCASION: Its 25 anniversary “The shed that stands as the East River natures needed to initiate the annexation Road Amtrak station in Elyria makes the process. Then, Cleveland must agree to enter The family-owned restaurant for a quar- On the make into annexation negotiations either by a public ter century has served up old world Italian basement-dungeon depicted in the ‘Saw’ Ohio’s three big cities remain exporting vote or a vote of city council. favorites along with fresh fish and local veg- series look like a Pixar playground,” Capps etables. wrote. “A fire — a cleansing, purifying, mer- powerhouses. On the move: A high-level administrator at the Nino’s recently expanded with an addi- ciful fire — closed the station shed in 2013. The International Trade Administration’s University of Akron is leaving for a position at tional dining room. Proprietor Tom Barber, Trains still stop there, according to Amtrak, latest Metropolitan Area Export Overview Syracuse University. Candace Campbell Jack- who opened the restaurant in 1990, makes even though the shed is now closed. Ar- showed that Cincinnati, Cleveland and son, currently the vice president for student suc- his employees a special meal on Sundays to guably, this situation is an improvement.” Columbus all are among the top 50 export cess and vice provost for academic success at the express his appreciation to them for being cities nationwide. University of Akron, was named vice president part of the Nino’s family. Way to go, Ohio Cincinnati was tops in Ohio, at No. 14 and chief of staff to Syracuse chancellor Kent Head chef Tony Bostwick has worked overall with $22.3 billion in 2014 exports. Syverud. Jackson is expected to begin her new with Barber for more than 20 years. In 30 of the top 100 markets in the coun- Cleveland was No. 29 nationally with $10.7 role on Monday, July 27. For information, visit try, including Akron and Cleveland, saving billion in 2014 exports, and Columbus was www.ninosnorthridgeville.com. for a 20% down payment is faster without a No. 48 with $6.2 billion in exports last year. 20150720-NEWS--23-NAT-CCI-CL_-- 7/16/2015 9:02 AM Page 1

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New 2-yr. activation on $34.99+ plan req’d. $250 = $200 bill credit + $50 smartphone trade-in credit (account credits applied within 2-3 billing cycles). Trade in must be in good working condition.

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Bill Credit will be removed from account if line is suspended or changed to non-qualifying price plan after activation. Offers expire 7/31/15. Activation/upgrade fee/line: $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan, & credit approval. Up to $350 early termination fee/line. Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. © 2015 Verizon Wireless. I7520MW 20150720-NEWS--24-NAT-CCI-CL_-- 7/16/2015 11:28 AM Page 1

THE 2015 SPRINTER

To maximize your effi ciency, you need to minimize your vehicle’s downtime, including stops at the gas pump. With the superior fuel effi ciency of its 2-stage turbocharged diesel engine, service intervals of up to 20,000 miles1 and legendary durability, the 2015 Sprinter will help keep your business ahead of the rest. Plus, new standard Crosswind Assist2 helps stabilize your Sprinter in strong, gusting crosswinds. The 2015 Sprinter—your hardest worker. www.freightlinersprinterusa.com

1 Driver is responsible for monitoring fl uid levels and tire pressure between service visits. See Maintenance Booklet for details. 2 Crosswind Assist engages automatically when sensing dangerous wind gusts at highway speeds exceeding 50 mph. Performance is limited by wind severity and available traction, which snow, ice, and other conditions can aff ect. Feature not available on 3500 models. ©2015 Daimler Vans USA LLC. All rights reserved.