A COMMUNITY Today, COMS Serves Roughly 2,000 Facilities, up from 850 in June 2013

20140818-NEWS--1-NAT-CCI-CL_-- 8/15/2014 4:53 PM Page 1

$2.00/AUGUST 18 - 24, 2014

SPECIAL SECTION UNIVERSITY CIRCLE COMS is BUILDING A NEIGHBORHOOD sprinting to big gains in software Broadview Heights company has more than doubled customer base since 2013

By CHUCK SODER [email protected]

If you’re a nursing home, history suggests that you will quintuple the money you spend on software from COMS Interactive. And that’s the worst-case scenario, according to ALSO INSIDE customer data generated by the Broadview Heights company. ROUNDING OUT Skilled nursing facilities are flocking to COMS — one of the fastest-growing technology companies in Northeast Ohio — to buy software that helps them take care of patients with multiple medical conditions. A COMMUNITY Today, COMS serves roughly 2,000 facilities, up from 850 in June 2013. The company’s strategy is to get big fast: COMS AREA’S HOME TO MORE THAN INSTITUTIONS is pushing hard to win customers now, while the market is hot, according to CEO Ed Tromczynski. By TIMOTHY MAGAW “For us, it’s a sprint to get into as many places as [email protected] WHO IS LIVING IN, AND we can, as fast as we can,” he said. The 6-year-old company has won over cus- or lack of a better phrase, life’s come full circle — in the Circle — MOVING TO, THE CIRCLE tomers and investors. for Allen Ford. He was born in 1928 at University Hospitals, and PAGE 13 A year ago, COMS — which stands for Clinical F today, the 86-year-old retired Standard Oil exec resides at Judson Outcomes Management Systems — raised a $21 Manor, a senior housing community in the heart of University Circle See COMS, page 7 on Cleveland’s East Side. In between, Ford served on the boards at many of the Circle’s anchor institutions, including UH, Case Western ROLE OF UNIVERSITY CIRCLE Reserve University and the Western Reserve Historical Society. “There’s a lot of happy coincidence there,” Ford said. INC. AND ANCHOR INSTITUTIONS So, Ford saw first-hand University Circle’s transformation into JOBS DOWN THIS MONTH Cleveland’s cultural and medical epicenter over much of the last cen- PAGES 14-15 tury. More specifically, since he moved into Judson a decade ago, he has observed the Circle’s evolution into a more complete neighborhood — one ripe with desirable housing stock, a grocery store, modern dining options and a dense enough population to support those DEVELOPMENT EFFORTS amenities. START MOVING UPWARD, OUT But for Ford, what makes University Circle a complete neighborhood isn’t so much the bricks and mortar, but the diversity. PAGE 16 “It’s a marvelous center for several neighborhoods,” Ford said. “It has an incredibly diverse gathering here.” What makes a neighborhood is a bit of a subjective question. Some say it’s the people or a sense of community, while others say it would be the physical infrastructure and the ease of daily living. That said, most people agree that University Circle is a complete neighborhood or at least on its way to becoming one, though perhaps not in the same sense as others in Cleveland. Technically, University

See NEIGHBORHOOD, page 19 33

7 REAL ESTATE RISK MANAGEMENT

74470 83781 Forest City Enterprises is attempting to reduce by Crain Communications Inc. ■ Vol. 35, No. 33 0 uncertainty in its $9 billion portfolio Page 5 20140818-NEWS--2-NAT-CCI-CL_-- 8/15/2014 3:33 PM Page 1

2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher: John Campanelli ([email protected]) Editor: Elizabeth McIntyre ([email protected]) Managing editor: Scott Suttell ([email protected]) Sections editor: Amy Ann Stoessel ([email protected]) CLASS OF 2014 Assistant editor: Kevin Kleps ([email protected]) Sports Senior reporter: Stan Bullard ([email protected]) Real estate and construction tStephen Anway,4RVJSF1BUUPO#PHHT tKevin Patrick Murphy 8BMUFS])BWFSĕFME--1 Reporters: Jay Miller ([email protected]) Government tChijioke Asomugha &3*$0*OUFSOBUJPOBM$PSQPSBUJPO tMichael D. Murphy $MFWFMBOE'PVOEBUJPO Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive tKate Bang 64**OTVSBODF tAshley Basile Oeken &OHBHF$MFWFMBOE Tim Magaw ([email protected]) Health care and education tReka Barabas #BE(JSM7FOUVSFT$MFWFMBOE tEdward Paradise $MFWFMBOE$POTUSVDUJPO Rachel McCafferty ([email protected]) Manufacturing and energy tTruc Cao (SFBUFS$MFWFMBOE1BSUOFSTIJQ tJennifer Piechowski ,FZ#BOL Research editor: Deborah W. Hillyer ([email protected]) tLuis Cartagena .#%"#VTJOFTT$FOUFS tSam Pines (PPE,BSNB#SBOET&41/$MFWFMBOE Cartoonist/illustrator: Rich Williams Art director: Rebecca R. Markovitz tRyan R. Cross 6OJWFSTJUZ)PTQJUBMT tScott Raybuck 4UFBN'JSF ([email protected]) Events manager: Jessica Snyder tJoan Curran Darkortey,'FEFSBM3FTFSWF#BOL tMichael Russell 3VTTFMM&RVJQNFOU *OD ([email protected]) Special events coordinator: Kim Hill tAnalisa DiFeo $8364DIPPMPG.FEJDJOF tMatt Schmidt 5SVTUGPS1VCMJD-BOE ([email protected]) Marketing strategist : Michelle Sustar tDavid Edelman %JBCFUFT%BJMZ-BC4UZMF*OOPWBUJPOT tJason Shefrin *OUFS%FTJHO ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) tFrancis Fungsang .BSHBSFU88POHBOE"TTPDJBUFT tShanelle Smith &NFSBME$JUJFT$MFWFMBOE Account executives: Dawn Donegan ([email protected]) tJohn Gadd )PUDBSET tScott Snider 4OJEFS1SFNJFS(SPXUI *OD Andy Hollander ([email protected]) Lindsie Bowman ([email protected]) tKatherine Golden 0&$POOFDUJPO tRyan Sommers 1SPKFDU.BOBHFNFOU$POTVMUBOUT John Banks ([email protected]) Michael Jansen ([email protected]) tAnnemarie M. Grassi, Ph.D 0QFO%PPST"DBEFNZ tNicole F. Steinmetz Ph.D. $8364DIPPMPG.FEJDJOF Office coordinator: Denise Donaldson ([email protected]) Web Editor: Damon Sims tSandhya Gupta ćF$IBOESB-BX'JSN --$ tWilliam Tarter, Jr.,0OF$PNNVOJUZ ([email protected]) Digital strategy director: Nancy Hanus tJayne Juvan 3PFU[FM"OESFTT-1" tTeleange’ Thomas 4JTUFSTPG$IBSJUZ'PVOEBUJPOPG$MFWFMBOE ([email protected]) Audience development director: tRobert D. MacKinlay $PIFO$PNQBOZ tPierre Van der Westhuizen $MFWFMBOE*OUFSOBUJPOBM1JBOP Eric Cedo ([email protected]) $PNQFUJUJPO Web/Print production director: tJeffrey N. Malbasa 4QFSP4NJUI*OWFTUNFOU"EWJTFST *OD Craig L. Mackey ([email protected]) tMegan Van Voorhis $PNNVOJUZ1BSUOFSTIJQGPS"SUTBOE Production assistant/video editor: tNeema Mayhugh, Ph.D $MFWFMBOE$MJOJD*OOPWBUJPOT Steven Bennett ([email protected]) $VMUVSF Billing: Michele Ulman, 313-446-0353 tNichelle McCall #0-%(VJEBODF ([email protected]) tJose Vasquez 2VF[.FEJB.BSLFUJOH Credit: Todd Masura, 313-446-6097 ([email protected]) tGina Morris %PXOUPXO$MFWFMBOE"MMJBODF Customer service/subscriptions 877-824-9373 Crain Communications Inc. AWARDS PARTY - TICKETS ON SALE NOW Keith E. Crain: Chairman Rance Crain: President Thursday, Oct. 9 | 5:30pm | RED Space at Hotcards Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations CrainsCleveland.com/40u40 Chris Crain: Executive Vice President, Director of Strategic Operations KC Crain: Executive Vice President, PRESENTED BYMEDIA PARTNER VALET SPONSOR BEVERAGE SPONSORS Director of Corporate Operations Dave Kamis: Vice president/production & manufacturing Anthony DiPonio: Chief Information Officer Thomas Stevens : Chief financial Officer Mary Kramer: Group publisher

G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) 20140818-NEWS--3-NAT-CCI-CL_-- 8/15/2014 1:52 PM Page 1

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4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014 SOLD 9470 PINECONE DRIVE MENTOR, OHIO

Newmark Grubb Knight Frank Visit is pleased to announce the sale of TerryCoyne.com Or Call Terry at 9470 Pinecone Drive a 67,200 SF 216.453.3001 manufacturing building in Mentor. 1350 Euclid Ave, Suite 300 Terry Coyne represented the seller. Cleveland, Ohio 44115

WHO IS LOOKING OVER YOUR DEAL? Are you working with a lender that will actually close on the original terms? AGGRESSIVE FINANCING UP TO $10M! UP TO 10 YEAR TERMS Jonathan Mokri LOW FIXED RATES 440.526.8700 20-25 YEAR AMORTIZATION [email protected] www.cbscuso.com Cleveland-Akron lost 7,242 jobs in July Providing Commercial Loan Financing in Partnership with Area Credit Unions SM The Cleveland-Akron area lost ment in the Cleveland-Akron area Economists at Wells Fargo Secu- 7,242 jobs last month, a 0.62% de- grew by just more than 1%, suggest- rities agreed with that assessment in cline from June, according to the ing a slow but steady uptick in job a July 15 commentary on the Cleve- first Ahola Crain’s Employment Re- growth land region’s economy. port, or ACE Report. The key numbers: The seven- “Although manufacturing still Cleveland Heights economist Jack county region added 11,674 jobs in plays an outsize role in the region’s Kleinhenz, who developed the eco- July 2014 over July 2013, bringing economy, it is unlikely to be the pri- nomic model, said the decline did total private-sector employment to mary engine of growth,” the econo- not surprise him, because he has 1,170,981, a 1.01% year-to-year in- mists wrote. The information in RUN FOR RECOVERY seen a drop in construction spend- crease. the ACE Report is the first month- ing and a slower pace of hiring by Most of that growth, 11,266 jobs, ly analysis of regional employ- large goods-producing firms. was in service industries, such as fi- ment growth that breaks jobs PROGRESSIVE The one-month decline runs nancial services, transportation and down by employer size. FIELD counter to the national trend, but the hospitality industry. The ACE analysis shows that Kleinhenz said by email that looking The modest growth in manufac- while 59% of jobs in the region are at longer-term trends “suggests that turing employment follows several at firms employing 50 or more peo- the pace of employment (for the full years of more rapid growth follow- ple, job growth at smaller firms ac- 5K run year 2014) should be picking up over ing the Great Recession. tually grew at a slightly faster rate, 8.30.14 the first half of 2014.” “We’ve seen a slowing in manu- year over year — 1.03% vs. 0.99%. This employment report is based facturing job growth and the ser- The ACE data is built on an eco- on payroll data from 3,000 employ- vices (now) are driving a lot of the nomic model developed by Klein- 1 mile Run @ 8:30am ers, gathered by The Ahola Corp., a job growth,” said Jacob Duritsky, henz, chief economist for the Na- Brecksville payroll and human ser- managing director of research at tional Retail Federation and CEO of fun walk Walk @ 9:15am vices firm. Team Northeast Ohio, the regional Kleinhenz & Associates. Looked at July-to-July, employ- economic development nonprofit. — Jay Miller Don’t miss your chance to run with the Cleveland Indians Hotdogs! REGISTER www.wizathon.com/runforrecovery 216-431-4131 Ext 1303 Volume 35, Number 33 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, ex- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 cept for combined issues on the fourth week of December and fifth week of December at 700 West year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation De- 9911, or email to [email protected], or call 877- partment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other loca- REPRINT INFORMATION: 800-290-5460 Ext. 136 tions), or fax 313-446-6777. 20140818-NEWS--5-NAT-CCI-CL_-- 8/15/2014 4:47 PM Page 1

AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Forest City ‘chopping’ away County is Sale of most of its Tower City assets is part of company’s effort to reduce risk in $9B portfolio seeking

By STAN BULLARD [email protected] creative Forest City Enterprises Inc. executives knew the announcement con- tained in the company’s second- way to aid quarter financial results, released Aug. 6, would be big news in its hometown. And they recognized the news would have personal meaning children for the company’s employees, espe- By JAY MILLER cially 600 at its headquarters in Ter- [email protected] minal Tower. David LaRue, Forest City’s CEO, Extending the concept of the pub- used a voicemail message to give lic-private partnership into the so- them the word simultaneously: The company is in talks to sell parts of cial services, Cuyahoga County is Tower City Center, but not Terminal embarking on a pilot program to at- Tower. Forest City’s headquarters tract outside funding to find innova- will stay in Cleveland. tive and lower-cost ways to assist The personal touch is a close-to- families and children. home example of the difficult path Called “Pay for Success,” or social Forest City has trod for years to sell impact financing, the idea is to at- billions in assets to reduce risk and tract foundations and private in- leverage in its far-flung, $9 billion vestors who will create and fund portfolio. new kinds of social programs from While Forest City is shedding as- scratch, apart from existing, often sets to focus on bigger urban areas, lethargic, bureaucracies. The expec- the prospective buyer of most its tation is that if programs are well de- Tower City Center assets — sources signed, they will provide quality ser- say it’s Los Angeles-based Hertz In- vice at a lower cost, and the investors vestment Group — has a taste for would share in the savings created, landmarks and office towers in Mid- essentially providing a return on west downtowns. their investment. The source of Forest City’s The FitzGerald administration course is found in its publicly trad- and Cuyahoga County Councilman ed status. Dale Miller have proposed legisla- The company’s $19.93 share price tion to Cuyahoga County Council to at the market close on Thursday, establish a social impact financing Aug. 14, is about 30% below the val- fund. ue of the underlying assets in its “We’ve created the funding mech- portfolio. The question comes up anism,” Miller said. “We’re now regularly on its conference calls with waiting for the contract to be devel- investors and analysts. oped.” On Forest City’s Aug. 7 confer- Miller said the initial legislation ence call, Jason Young, managing passed with a 7-4 vote and he be- partner at New York-based YG Op- lieves there is support to go forward, erating Capital, posed it point- though, he conceded, skepticism re- blank: What does it need to do to mains. “It’s a very complex financing close that gap? system; it’s innovative,” Miller said. Robert O’Brien, Forest City’s chief Only two other social impact fi- financial officer, responded, “I think nancing programs are underway na- that as management and sharehold- tionwide. One is in Massachusetts ers we’re frustrated, too. Under targeting youth on probation. The (LaRue’s) leadership, we set out other is in New York state, targeting some strategies and we’re executing prison recidivism. against them, and I think we’ve done The county has enlisted assistance a particularly good job at it. I don’t to develop the program from the think we’re quite where we need to Cuyahoga Metropolitan Housing be in a number of places.” Authority; Case Western Reserve During the recession, Forest City University’s Center on Urban Pover- started shedding assets to reduce ty and Community Development; risk and leverage, and that process the Gund Foundation; and Third continues today. Sector Capital Partners, a Boston- Since 2012, Forest City has fol- based nonprofit financial advisory lowed what LaRue has called a service that has counseled similar ef- “high-quality properties in high- forts. quality markets” strategy. The com- The pilot program would offer pany’s goal is to shift its capital to housing and mental health care to clearly stated core markets where it mothers who otherwise would be can employ its capital and develop- homeless, a status that normally ment skills to reap returns. Those would send their children into the markets include Boston, Dallas, expensive foster care system. David Denver, Los Angeles, New York City Merriman, deputy chief of staff for and Washington, D.C. health and human services in the Even after shedding properties FitzGerald administration, said it worth millions, Forest City, as its ex- costs $70 a day to care for a foster ecutives say, “still has chopping to child. do.” Timing is in favor of a Tower City Spread around the Midwest Hertz, founded by Judah Hertz, Cuyahoga County spends more The company gets almost 83% of Center sale as the region, after a its CEO, in 1977, has a portfolio of Hertz has been working for al- than $35 million annually on foster its net income from core markets; long hiatus, is getting outside in- 48 office buildings, representing most a year on a deal with Forest care, either to foster parents or to its goal is 90%. Forest City says its vestor interest, primarily because upwards of 15 million square feet of City for the region’s best-known dozens of institutions. It also spends coastal commercial properties are office space. strategy also is designed to benefit commercial property, according to millions of dollars on housing and considered too costly. That is where The Hertz website describes its from increased urbanization global- one of three sources who identified providing services to the homeless, Hertz, which has substantial Los focus as operating “exceptional ly and to focusing on “growing up” Hertz as the bidder for the proper- through a number of organizations in major cities instead of growing Angeles holdings, comes in; it is ties. The three declined to be iden- properties” from prominent high- that serve the homeless. out. large and has bought millions of tified because they are not autho- rise office buildings to luxury ho- Merriman said he did not foresee Cleveland, where Forest City was dollars worth of high-rise office rized by the principals to discuss tels, apartments and international using Pay for Success for core founded in 1920, is not on that list. towers in the Midwest. the proposed transaction. See FOREST CITY, page 8 See COUNTY, page 22 20140818-NEWS--6-NAT-CCI-CL_-- 8/15/2014 3:55 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014

10700 BURDGZD\$YH*DUÀHOG+WV2+ Manufacturers fight back ,QYHVWRU8VHU2SSRUWXQLW\ Trade organizations say controls need to be in place for currency manipulation By RACHEL ABBEY McCAFFERTY [email protected]

Currency manipulation has a huge impact on manufacturers, says Bill Adler, president of Strip- matic Products Inc. in Cuyahoga Heights. Indeed, the past chairman of the Precision Metalforming Asso- ciation thinks it’s the biggest hurdle U.S. companies face when it comes to competing globally. “We see and feel the direct impact of lost jobs, lost revenues because of unfair currency manipulation,” Adler said. The issue of so-called currency manipulation — when a govern-

seventy-fifth 75 anniversary FOTOLIA -RVHSK-0DUWDQRYLF ment purposefully devalues its currency — and its affect on manufac- “It’s important to get it right now in opportunities recently to find cur- 216.861.7200 | www.ostendorf-morris.com turing was highlighted last week in the TPP,” Gibson said. rency manipulation among the global commercial real estate services Cleveland. Last Wednesday, Aug. country’s trade partners, and it’s 13, the leaders of three trade orga- Jobs at stake declined to act. nizations representing industries John Colm, president and execu- employing more than 42,000 tive director of manufacturing eco- Local impact Ohioans gave a news conference at nomic development group Wire- the City Club in Cleveland, calling Net, said the issue of currency Currency manipulation isn’t a for controls for currency manipula- manipulation and the trade deficit new problem. Randy Solganik, owner and president of City Plating McDonald Hopkins tion to be enacted as part of the to which it contributes have put BUSINESS HOUR Trans-Pacific Partnership. jobs at stake in Northeast Ohio. in Cleveland, said currency manip- The Trans-Pacific Partnership is Colm said that, according to the ulation had a big effect on his com- Executive Compensation Series a potential trade agreement being U.S. Bureau of Labor Statistics, the pany in the late ’90s and early 2000s negotiated between the U.S. and state lost 3,500 manufacturing as companies started to take advan- The key to portfolio Australia, Brunei Darussalam, plants from 2000 to 2010. Colm said tage of the low-cost supply chain Canada, Chile, Japan, Malaysia, that’s in part because domestic de- and labor in countries like China. company success Mexico, New Zealand, Peru, Singa- mand is down. He said he thinks it has since Featuring The Riverside Company’s Stewart Kohl and pore and Vietnam. According to the “We know it’s having an effect on reached a plateau. Lauren Rich Fine of Howard & O’Brien Associates Office of the United States Trade Ohio companies and jobs,” Colm Adler of metal stamper Stripmat- Representative’s website, the U.S. said. ic also noted that the industry has Wednesday, September 10, 2014 wants the agreement to help open A February 2014 report from the been battling currency manipulation for years. He said he’d like to 4:00 p.m. to 5:15 p.m. EDT markets and set trade rules by ad- Economic Policy Institute estimat- dressing issues such as tariffs, work ed that the United States could low- see a clear definition and enforce- Scan to register McDonald Hopkins ment standards enacted to help lev- 600 Superior Ave., Suite 2100, Downtown Cleveland conditions and intellectual proper- er the trade deficit and create 2.3 ty rights. million to 5.8 million jobs if curren- el the playing field. He believes it Register at mcdonaldhopkins.com or call: 216.348.5400. Matt Blunt, the former governor cy manipulation was eliminated should be part of the Trans-Pacific Partnership, if it gets signed. of Missouri and the president of the from 20 countries. The report en- Michael Stumo, CEO of the American Automotive Policy Coun- couraged fighting currency manip- Coalition for a Prosperous America, cil, which led Wednesday’s confer- ulation in a number of ways, in- said he doesn’t think the country ence along with the American Iron cluding adding such controls to the can fully recover from the recession and Steel Institute and the Nation- Trans-Pacific Partnership and McDonald Hopkins LLC until currency manipulation is ad- al Council of Textile Organizations, notes that Ohio would be one of the 4VQFSJPS"WF &BTU 4VJUF $MFWFMBOE 0)t dressed. It affects the trade deficit, said currency manipulation affects top 10 states to gain jobs. Carl J. Grassi, President Shawn M. Riley, Cleveland Managing Member jobs and the supply chain, he said. manufacturers in three main ways. “These are big numbers,” Blunt $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI Stumo’s national organization is fo- It makes it difficult to penetrate said of the report. cused on balancing the trade mcdonaldhopkins.com closed markets, such as Japan, he And the trade associations aren’t deficit. said. It amounts to an unearned ex- alone in their campaign. The industry groups on Wednesday touted bi- Last week, Stumo was in Cleve- port subsidy for the countries ma- land visiting some of its member nipulating their currency. And it partisan, bicameral support of the efforts to include currency manip- companies, including Exact Tool makes it difficult in markets where ulation controls in the trade agree- and Die Inc. in Brook Park. Frank both countries are competing for ment, providing copies of letters Chesek, president and owner of Ex- exports, like the Middle East. “Cur- signed in 2013 by 60 senators and act Tool and Die, said he’s seen op- rency manipulation has a real im- more than 230 members of Con- portunities dwindle in the years HOW BAD IS THAT LEAK? pact on our ability to be competi- gress. that currency manipulation has tive,” Blunt said in a meeting with Ohio’s legislators have been been going on. As a supplier to ex- Crain’s before the news conference. strong supporters, the group said. porters, he’s seen companies close Blunt said the groups are looking That includes Sen. Sherrod Brown, or move their tool and die work off- for the negotiators of the Trans-Pa- a Democrat who has introduced shore. cific Partnership to put a set of stan- two acts related to currency manip- Chesek, who is co-chair of the dards in place to determine ulation to Congress since 2011; Sen. coalition’s Ohio chapter, said he whether a country is manipulating Rob Portman, a Republican, and thinks his tool and die and stamp- its currency and implement a Rep. Dave Joyce, also a Republican. ing company would have grown penalty — the loss of the tariff Joyce also co-sponsored a currency more had it not been for currency agreement with the markets for a manipulation bill, and said the manipulation. The company has year — against countries that vio- practice puts enormous pressure just fewer than 40 employees. late those standards. There’s no on the U.S. economy. Creating a Stumo said members of the concrete precedent for this, Blunt level playing field through this type House and Senate have been “sol- Keep your assets safe by taking the time to ensure that problems said, but he compared it to the en- of legislation is important to pre- id” on the point that currency ma- at the top of your building are not damaging your bottom line. vironmental and labor issues now serve jobs and lay the foundation nipulation controls need to be part addressed in trade agreements. He for a better system in which to ex- of any future trade agreements and said he thinks it’s the next step in port. he thinks it would be near-impossi- Carey Roofing Corp. has eliminated asset damage due free trade. “It’s important because it’s ble to get the Trans-Pacific Partner- And the groups don’t see this as about jobs,” he said. ship through Congress without to a leaking roof with practical solutions since 1946. an issue stopping with the Trans- Though Colm of Wire-Net is them. If it’s not, a trade agreement Pacific Partnership. Thomas J. Gib- heartened by the bipartisan sup- can reduce a tariff, but a country MEMBER: son, president and CEO of the port, he’s not completely optimistic can immediately reverse that win 216 • 881 • 1999 American Iron and Steel Institute, that the trade agreement would ad- with currency manipulation. CAREY National Roofing www.careyroofing.com said the potential agreement will dress the currency manipulation is- “You can totally undo the whole Roofing Corp. founded in 1946 Contractors Association likely serve as a model for trade sue. From his perspective, the ad- trade agreement by manipulating agreements going forward. ministration has had multiple currency,” Stumo said. 20140818-NEWS--7-NAT-CCI-CL_-- 8/15/2014 2:53 PM Page 1

AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7

at its new headquarters in Broad- Tromczynski, who is best known as Tromczynski said he also could see view Heights. co-founder of PlanSoft Corp. That a scenario where COMS eventually Those numbers should go up company provided online services gets bought by an electronic med- COMS fast: Within a year, the company for the meetings business and em- ical record company that wants to probably will employ 100 people, ployed 200 in Twinsburg before a get into the skilled nursing market. continued from page 1 DaylightIQ, and that means more including 50 at its headquarters, series of mergers in the early 2000s. That outcome wouldn’t surprise million investment from Summit revenue, according to Tromczynski, Tromczynski said. Jim Weisman, a vice president at Partners of Boston. citing customer data generated by COMS’ local employees had been BioEnterprise, a Cleveland non- At the time, a managing director the software. scattered across three offices total- A little Daylight profit that assists local biomedical from the private equity firm said The facilities retain residents by ing about 3,000 square feet, until So what’s COMS’ long-term companies. Summit was impressed by COMS’ keeping them alive and out of the July, when it upgraded to its new plan? Well, lots of investors have For one, the Ohio Venture Asso- ability to make good on the promise hospital, he said. 10,000-square-foot office at 9100 wanted to give money to the com- ciation named COMS its 2014 Ven- it makes to every customer: In each For instance, COMS clients have South Hills Blvd. pany, which took a deal from Sum- ture of the Year. contract, the company guarantees an average 30-day hospital readmis- The move gives COMS room to mit Partners because of its depth of Weisman, who managed that that the amount of new revenue the sion rate of 12.7%, according to the grow: The company has first right of experience in the health care space, event, has kept in touch with COMS company. The average readmission customer generates in a year will be refusal on another 14,000 square Tromczynski said. ever since its founders — the late at least five times greater than what rate for all U.S. skilled nursing centers feet next to its third floor office, Eventually, COMS could raise Dr. Tom Riemenschneider and his they spent to subscribe to COMS’ stood at 23.5% in 2006, the last time Tromczynski said. more cash from investors, assum- son, former nursing home adminis- web-based software for one year the Centers for Medicare and Medic- trator Jim Riemenschneider — de- (usually $25,000 to $30,000). aid Services published data. In 2012, cided to create a software business Not one client has missed that the average for all Medicare patients “A month in, they’ve mastered the product. Two months goal, Tromczynski said. The closest — regardless of whether they are sent out of a consulting business that was a customer that only generated home or to a skilled nursing facility in, they’re seeing clinical outcomes. Three months in, helped nursing homes keep pa- nine times as much revenue as they — was 18.4%, according to CMS. they’re starting to make money.” tients out of the hospital. spent, he said. And by keeping residents health- The fact that COMS was able to – Ed Tromczynski How’s that possible? ier, COMS win referrals, Tromczyn- break into a market that tradition- The software, DaylightIQ, allows ski added. CEO, COMS Interactive ally pinches its pennies says a lot skilled nursing facilities to docu- “A month in, they’ve mastered about the company’s momentum, ment each resident’s medical con- the product. Two months in, they’re Weisman said. ditions and vital signs, as well as the seeing clinical outcomes. Three But revenue growth will probably ing they could help the company “They have a working solution steps taken to treat them. months in, they’re starting to make outstrip the growth of COMS’ staff, expand internationally or connect that has proven itself,” he said. The product can tell staff mem- money,” he said. he said. with bigger companies that make That momentum may give bers when medications conflict That’s typically what happens at electronic medical record systems COMS the ability to do some ac- with each other, and it can send out successful companies that deliver for hospitals, he said. quiring of its own, Tromczynski alerts when it spots a potential Build, sell, charge software via the Internet on a sub- For one, he would like to inte- said. problem. As the company’s customer base scription basis. grate DaylightIQ with those hospi- “We’re growing fast enough to be COMS’ customers typically fill grows, so does its staff. COMS em- “We build it once, sell it to many tal systems. the guy that buys the other compa- more beds after they start using ploys about 60 people, including 30 and charge them every year,” said But if things keep going well, ny,” he said.

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014 L.A. brokerage opens space here FOREST CITY continued from page 5 diving into the Midwest markets for By STAN BULLARD centers selling fashion, gifts and jew- office towers at bargain prices com- [email protected] elry. pared to commercial properties on With downtown Cleveland’s sec- the nation’s coasts. Three real estate brokers with ond-tallest skyscraper as its focal deep roots in the region are putting point, parts of the massive Tower their talents together to open the City Center project under Forest It’s ‘complicated’ first Ohio office for Los Angeles- City’s control include almost 1.8 mil- Forest City in an Aug. 6 filing with based Lee & Associates, a national lion square feet of office and store- the Securities and Exchange Com- commercial real estate services front space in four office buildings, mission provided substantial detail firm. including the massive Post Office on the sale talks. Scheduled to open the office on Plaza building, built in 1934 as the In the filing, Forest City said it had Monday, Aug. 18, are Joseph Green- city’s main post office and convert- agreed to terms with a buyer it did berg, Brad Coven and Jeremy ed to offices in 1990. not identify for the Skylight Office Steiger, who previously operated Forest City in 2012 transferred the Tower and Post Office Plaza portions their own practices. The three share office building at 250 W. Huron of Tower City Center. ownership of the office — currently Road, and its upper-floor Ritz-Carl- However, Forest City said those in temporary space in Beachwood Greenberg Coven ton, to gaming operator Rock Ohio deals would not be consummated — and the title of co-president. It’s Caesars, the joint venture of Cavs without agreements to sell the th Lee’s 50 office nationwide. his partners wanted to join a na- owner Dan Gilbert and Las Vegas- prospective buyer both the 4,000- The brokerage also opens with tional brokerage to provide more based Caesars Entertainment Corp. space parking lot underneath the substantial listing assignments for exposure for their client listings na- Rock Ohio last year bought from For- massive Tower City complex and a almost 5 million square feet of in- tionally. est City the Higbee Building, once a half-interest in The Avenue, the re- dustrial and office space, as Green- Major decisions by Lee are made department store that originally tail portion of the property. Such berg will continue to do leasing for at meetings of its member broker- served as Tower City’s retail anchor, steps show the nationally known de- Solon-based Chelm Management ages. Greenberg said Lee is making but is now Horseshoe Casino Cleve- veloper will not allow a buyer to Inc. and Coven will continue to an investment for an amount he land, pluck its better assets and leave it handle leasing for Beachwood- would not disclose to add the Cleve- Two calls each to Judah Hertz and with lesser ones. based Coven-Goldman Associates. land office. The three are searching James Ingram, the company’s chief Some of Hertz’s aggressiveness is Lee & Associates signs will start go- for a permanent office on Chagrin investment officer, were not re- apparent in the quest for Terminal ing up on properties they list imme- Boulevard in Beachwood, Green- turned. Tower, although Forest City said it diately, Greenberg said. Chelm and berg said. However, Susan Ilda, Hertz’s will not sell it. The building has 23% Coven-Goldman will continue to Jeremy Steiger focuses on office spokeswoman, left a voicemail mes- vacancy, or about 158,000 square manage their properties in-house. and medical-office leasing and will sage last Monday, Aug. 11, saying, feet of empty space. Greenberg said the three identi- be able to gain listings for Lee “We would not have any comment on Tower City right now.” fied Lee as the brokerage to join be- clients looking for space in the re- Steiger Asked if Hertz is the buyer for “It’s the most complicated cause it is owned by the member gion, Greenberg said. The office’s Tower City, Forest City spokesman brokerages that run its offices, first associate is Dan Steiger, Jeremy building downtown.” Jeff Linton declined to comment. He which reduces overhead and maxi- Steiger’s cousin and a veteran of nificant move on our part to get a – Alec Pacella cited a longstanding company poli- mizes commission for local broker- Brecksville-based Flair Corp. devel- foothold in the Ohio market as well NAI Daus cy not to discuss the identity of buy- ages. opment concern. Lee plans to add as growing our Midwest presence.” ers until after it closes a transaction. “We are entrepreneurial, and we more associates as it finds people Rinkov said Lee wanted an office in That is as much vacant space as Hertz is heavily represented in wanted to maintain the same con- with the right mix of skills and as- Cleveland because of its increased the Post Office Plaza and Skylight Of- other metropolitan Ohio downtowns trol we had with our own business- signments, but Greenberg said it national attention. fice Tower combined, according to and the Midwest. es,” Greenberg said. At the same has no specific number it seeks to The Northeast Ohio office joins online commercial realty data Hertz owns two prominent down- time, Lee was looking to establish add in the next year. nine others the brokerage has added provider CoStar. To the buyer, the town Cincinnati office towers, the an office in Cleveland, so it was a Jeffrey M. Rinkov, Lee’s CEO, said in 2014, including locations in At- empty space represents potential lanta; Baltimore; Charleston and Capital Square office building in natural fit. Greenberg said he and in a news release, “This marks a sig- upside if it went into the deal. Greenville, S.C.; Edison and Elmore Columbus, and four office buildings The sale of only a half-interest in Park, N.J.; Indianapolis; Kansas City, in Indianapolis. the Avenue reflects how difficult the Kan.; and New York City. In Pittsburgh, Hertz owns the four negotiations have been. Greenberg and Coven knew each high-profile Gateway Center sky- Such a provision typically means other from working at CBRE Group scrapers that front the city’s famous the seller insists an asset is worth SALT • SALT • SALT earlier in their careers. Greenberg Point State Park. The Pittsburgh more than a buyer is willing to pay. has 15 years of commercial real es- Business Times reported on Aug. 11 Selling 50% of the retail component • Water Softener • Industrial • Food tate experience and previously ran that Hertz is marketing its Gateway of Tower City means Forest City Greenberg Real Estate Advisors in Center for sale. would stay in the ownership group • Ice Melt • Sea Salt Solon. Coven has 16 years in the in- Hertz’s website notes it has sold to profit from it in the future — or to dustry and previously worked direct- 39 other office buildings, hotels and share in the pain if no gains are to be ly for the family owned firm. Jeremy apartment properties through the had. Steiger has operated Select Ohio in Call For Pricing!! years. Similarly, since Forest City owns Beachwood since 2010 and has 18 A January 2012 story in The Wall multiple suburban malls as well as years of experience in the business. Street Journal reported Hertz was Minimum Delivery: 1Pallet shopping centers in New York City and San Francisco, it might have leasing connections with retailers that might be useful for Hertz, which has less depth in the shopping center business. PLAN YOUR Alec Pacella, an investment sales WORKPLACE expert who manages Beachwood- based NAI Daus, said any buyer of RETREAT parts of Tower City would not be a typical real estate investor. Common Ground corporate “They have to be an operator,” retreats combine challenging Pacella said. “It’s the most complicated building downtown. There are ŽƵƚĚŽŽƌ ĂĐƟǀŝƟĞƐ͕ ƉƌŽĨĞƐƐŝŽŶĂů interrelationships (below ground) growth programs and team- between the different buildings, ďƵŝůĚŝŶŐ ĞǆĞƌĐŝƐĞƐ ƚŽ ĚĞǀĞůŽƉ parking and the (Greater Cleveland your associates’ leadership skills Regional Transit Authority) rapid ĂŶĚƉŽƚĞŶƟĂů͘ station. With this combination of easements, access ways and air “Combining the Canopy Tour with rights you’d have to be a very hands- a half-day Leadership Retreat on operator to want to get involved at Common Ground was the best in it.” retreat I’ve had with my team!” Do Forest City execs feel any pain at putting most of Tower City on the X Allison M. Boersma, &K͕KKZŝĚĚĞůů market? The company spokesman, Linton, said the property is “obvi- ously close” to the company but said 1-800-547-1538 that as a professional developer it Salt Distributors Since 1966 has always been a seller of assets. www.commongroundcenter.org or (440) 707-2044 “It’s not like they are going away,” Linton said of the buildings. 20140818-NEWS--9-NAT-CCI-CL_-- 8/14/2014 3:20 PM Page 1

AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9 GOING PLACES JOB CHANGES

ARCHITECTURE THENDESIGN ARCHITECTURE: Lauren Scioscia to senior interior designer. Scioscia Ferrell Graham Garcia CONSULTING We Solve Problems… SEGAL GROUP: Megan Kelly to Now Even More Of Them. vice president. Litigation • Criminal Defense • Domestic Relations SHAKER: Jared Ferrell to content Immigration • Government Relations • Estate Planning development consultant; Ken Business Transactions • Real Estate • Employment Graham to senior consultant. Banking • Regulatory and Administrative • Competition DISTRIBUTION TRANSTAR INDUSTRIES INC.: Saari Coode Skoda Bosley Through strategic alliances with two outstanding law firms -- David Haynes to vice president, Mills, Mills, Fiely & Lucas and The Herman Legal Group – U.S. domestic distribution. Our business law firm is proud to announce a broad expansion of our services. Visit our website to read about our expanded practice areas. EDUCATION www.gertsburglaw.com NORTHEAST OHIO MEDICAL www.mmfllaw.com www.hermanimmigrationlawyer.com UNIVERSITY: Sergio A. Garcia to vice president, Office of Diversity, 36 South Franklin St. | Chagrin Falls | 440-571-7777 Equity and Inclusion.

FINANCE Romer Ansberry Sherman Schwartz CHARTER ONE: Kandis Williams to vice president, community development lending relationship manager, Ohio and western Pennsylvania. FINANCIAL SERVICE ASENTI DILIGENCE PARTNERS: Josh Melitschka to director; Kevin Berry to analyst. Mast Keenan Gustovich Rex PNC CAPITAL MARKETS: 2014 Ryan Kozak to director. Romer to associate. MARTHA HOLDEN JENNINGS SKODA MINOTTI: Sean Saari and FOUNDATION: Daniel Keenan Jr. Robert D. Coode to partners; Greg MANUFACTURING to executive director. BOOK Skoda Jr. and Randy Bosley to LINCOLN ELECTRIC CO.: Jennifer principals; Denny Murphy Jr. to Ansberry to vice president, deputy REAL ESTATE Northeast Ohio’s most senior manager; Tony Antonelli, general counsel. BASS OHIO REAL ESTATE: OF John DiGeronimo and Michael R. PMI INDUSTRIES INC.: Phil Zivich Kathryn Parks to sales associate comprehensive market Iosue to managers; Juliana Hanea, to manager, inside sales and and property manager. Jonathan Kocon, Karilyn Mader, LISTS customer service. KOWIT & CO. : George Gustovich research tool David Silverman, Nick Ward and to commercial real estate broker. Shaun Zalewski to senior staff MEDIA accountants; Meredith Wesig to RE/MAX CROSSROADS DOWNLOAD TODAY! office administrator. IDEASTREAM: Maxie C. Jackson PROPERTIES: Charla Frank to III to manager, 90.3 WCPN; Peg sales associate. TRINITY PENSION CONSULTANTS: Excel edition available for purchase at Neeson to manager, WVIZ/PBS; Gary Kasper to consulting actuary. Jenny Northern to manager, WCLV BOARDS CrainsCleveland.com/Lists HEALTH CARE classical 104.9; Mark Rosenberger Interested in advertising in the 2015 Book of Lists? Contact to managing editor, content; Mike CLEVELAND JAZZ ORCHESTRA: SUMMA WOMEN’S HEALTH Shafarenko to manager, community Adrienne Stemen to president; Nicole Mastrangelo at 216-771-5158 or [email protected]. INSTITUTE: G. Dante Roulette, engagement, web and social media. Rob Sikora to executive vice M.D., to gynecologic surgeon; president; Joel Brotman to vice Robin Laskey, M.D., to gynecologic NONPROFIT president, governance; David oncologist. CLEVELAND JAZZ ORCHESTRA: Gedeon to treasurer. HOSPITALITY Colleen Sherman to executive director. AWARDS TABLE 45: Donna Chriszt to HATTI LARLHAM: Catherine chef de cuisine. Schwartz to chief development BEHAVIORAL HEALTHCARE: WHAT officer; Darryl Mast to chief Debra Rex (Beech Brook) received LEGAL operations officer; Daniel Warner a 2014 Behavioral Healthcare IGNITES FISHER & PHILLIPS LLP: Shawn to vice president, operations. Champions Award. YOU? Send information for Going Places to [email protected] NORTHEAST OHIO MEDICAL UNIVERSITY- Changing Lives, GET DAILY NEWS ALERTS FROM CRAIN’S Expanding Knowledge For more than 40 years, Northeast REGISTER FOR FREE E-MAIL ALERTS AND RECEIVE: Ohio Medical University has been changing the lives of individuals in THE MORNING ROUNDUP: DEALMAKER ALERT: A weekly guide on M&A trends the region through the innovative The day’s business news from Ohio’s daily papers and recent transactions in Ohio. Published Wednesday. teaching of tomorrow’s physicians, BREAKING NEWS ALERTS MANUFACTURING REPORT: A weekly guide to SKDUPDFLVWVSXEOLFKHDOWKRI¿FLDOV DAILY HEADLINES: Crain’s-produced news and blog Northeast Ohio’s manufacturing sector. and health care researchers. items from the day Published every other Wednesday. Dedicated to its mission of education, research and service, Northeast SMALL BUSINESS REPORT: A weekly guide to REAL ESTATE REPORT: A weekly guide to real estate Ohio Medical University continues small business news. Published Thursday. news. Published Monday. to improve the quality of health care HEALTH CARE REPORT: A weekly guide of changes in SHALE AND ENERGY REPORT: A weekly guide to and make a strong economic impact the health care industry. Published Tuesday. the energy industry. Published Friday. in Northeast Ohio and beyond.

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10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Keep building The phrase “world class” gets tossed around casually in all sorts of contexts, usually to describe something that’s not quite at that level. Cleveland is fortunate enough, though, to have some assets — the orchestra, the art museum, the health care institutions — that genuinely merit the term. One thing they have in common: their presence in, or close proximity to, the vibrant University Circle area. If you haven’t been to University Circle in a while, by FROM THE PUBLISHER all means check out the package of stories in this week’s issue coordinated by sections editor Amy Ann Stoessel. (Or better yet, go there for a visit. You won’t be disap- City’s global perspective is shortsighted pointed.) The stories paint a portrait of a true neighborhood benefiting from the full scope of city life, from arts Back in 2008, then-new Philadelphia unique. Since 2010 alone, more than 30 provincial. institutions to schools, and hospitals to new residential Mayor Michael Nutter set a goal to in- cities and states have launched immi- It’s not that we are anti-immigrant, it’s developments and transit assets. crease his city’s population by 75,000. grant-welcoming initiatives. They in- just that luring foreign-born residents There’s still work to be done to make University Cir- Like Cleveland, Philly saw its popula- clude Detroit, Cincinnati and Dayton. doesn’t seem to be much of a priority for cle an even better place to live, work and play. As Lillian tion peak in 1950 … and then hemor- Cleveland is not one of them. many of our leaders, even as our popula- Kuri, program director for architecture, urban design rhage for decades afterward. We have groups, foundations and in- tion and tax base continue to bleed. and sustainable development at the Cleveland Founda- When he dug into the data, Nutter no- dividuals in town working hard to at- Every spring, we let hundreds of tion, says in a story you’ll find on Page One, “We’re on ticed that while his city was losing net tract, connect and welcome immigrants smart, tech-savvy and entrepreneurial- the cusp of a lot of great progress, but have put in mo- population, it was gaining for- — most notably Global Cleve- minded foreign-born graduates walk off eign-born residents, especially land and its funders — but this the stages at local universities … and tion things to make this a district unlike any other.” younger ones. immigrant-attraction thing re- into buses, cars and planes bound for One more encouraging sign for the area came from Nutter made it one of his quires widespread support. other cities. the MidTown Cleveland Inc. economic development goals to open the City of Broth- That’s because it isn’t easy. These are tomorrow’s employers, cus- nonprofit. That group last week hired Jeff Epstein to be erly Love to immigrants. He First off, there aren’t that tomers and business partners. the first director of the Health-Tech Corridor, an um- signed an order requiring all many immigrants out there. It’s going to take a monumental full- brella organization that promotes development along city departments to have a Only about a million green court press to make Cleveland a popular the East Side spine between downtown and University “language access” plan for cards for legal permanent res- destination for immigrants. Circle to health industry businesses. helping residents who spoke idency are issued every year. We’ll need plans, people, policy, pro- Epstein, who has been a vice president of the Coral limited English. He formed a JOHN Second, immigrants often grams, cooperation, infrastructure and Co., a Cleveland commercial and residential real estate task force to come up with choose a city because of fami- lots more. developer, will develop a business and marketing strat- ways to help immigrants settle CAMPANELLI ly members, friends and the But most important, we need the will. egy for the corridor. into the city. And he created an current immigrant communi- We need political leadership that recog- He brings the ideal background to the job. And he has immigration and multi-cultural affairs of- ty already there. In other words, immi- nizes the benefits — economic and cul- a lot to work with, as the Health-Tech Corridor, which fice within City Hall. grants bring more immigrants. Less than tural — that immigrants bring a city. was created by a group of foundations and nonprofits In general, the city whose fans gained 4% of Cleveland’s population is foreign- They should be leaders who can quickly including BioEnterprise, already is home to more than infamy for booing and throwing snow- born, compared with about 12% in Philly and bravely shout down the myths that balls at Santa Claus worked to warmly immigrants are job-stealers or one-par- 130 technology companies. (and more than 30% in Cleveland in welcome new Americans. ty voters. Leaders with the vision of May- We look forward to watching the progress Epstein 1920). The results? In 2011, Philly reported its or Nutter who can imagine what 40,000 and others make in building the Health-Tech Corridor We have all been celebrating “New first population growth in 60 years. In Cleveland” this summer — the RNC, Le- or 50,000 more immigrants might mean into another — dare we say it? — world-class asset for 2013, the city was up about 105,000 in to- Bron, new development, downtown to our community and economy. Cleveland. tal population, shattering Nutter’s initial population growth, the Gay Games — This summer has shown us all that goal. but on immigration the “Old Cleveland” Cleveland’s secret is reaching the nation. Dogged pursuit Philadelphia’s efforts are hardly mindset seems to remain, insular and Why not go global? More than 12,500 people now call downtown Cleve- TALK ON THE WEB land home, according to Downtown Cleveland Alliance. And still more are on the way, as 1,000-plus residential Re: More on standing desks might help. The zebra mussels are the causes algal blooms. units, at properties including The Residences at 1717 primary cause and rapidly became inva- Climate change, fertilizers, heavy rain, There are situations when a standing and The 9, are slated to come online in the next two sive and grew to enormous populations combined storm and sanitary sewer sys- workstation can be “ergonomically cor- years. Market rate apartment occupancy downtown in the early 1990s. Note the timing of the tem, those are easily identifiable causes. rect,” and there are circumstances with return of cyanobacteria (toxic algae). — Robert Chalfant now tops 98%, DCA estimates. a standing workstation can be detrimen- But here’s how we know downtown’s a hot ticket: an The problem is the mussels have a tal. feeding preference for the nontoxic ben- online fundraising campaign has launched to raise We help companies decide which is Re: Recent tech megadeals money to build a dog park at Settlers Landing Park, on eficial algae, to the point of expelling un- best. (We don’t sell them). used ones to the bottom of lake. Nature We need the Cleveland entrepreneur the eastern bank of the Cuyahoga River. I dare you to give one to a pregnant abhors a vacuum, so the algae that are who says, “I’m gonna be the buyer, not The campaign is being run by Tackk, a Cleveland web woman with orthopedic problems. left to really dominate the lake environ- the seller!” design startup. DCA says it will match every donation, Someone will ... “make you pay.” ment in a manner reminiscent of hospi- — Robert Salmon dollar-for-dollar, up to $10,000, to create a space that — Lee Mayer tal diseases are the toxin producing would serve the estimated 1,000 dogs who live with forms. those 12,500 humans downtown. Re: A downtown Re: Algal blooms in Lake Erie They really need a predator or disease You don’t have to be a dog lover to recognize services to control the mussels. Cleveland dog park? like this are a hallmark of a healthy, growing city where Actually, with the high cost of fertiliz- — Keith Pritchard This is awesome. Another great step people are comfortable and want to live. Think of it as er it is being used more responsibly all toward making downtown Cleveland a further unleashing downtown’s potential. the time already. We don’t have any Asian Carp yet, and place you’d like to live. Maybe some more riparian buffers I don’t understand how a zebra mussel — Donna Bernsdorf 20140818-NEWS--11-NAT-CCI-CL_-- 8/14/2014 1:29 PM Page 1

AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 PERSONAL VIEW Land For Sale Union rules force changes Erie, Geauga, Lorain & Summit Counties By RICK HEPP month in a case involving McDon- Hepp is an associate in the ald’s USA LLC. Erie County Employment & Labor Group The National Labor Relations He claimed McDonald’s USA 620 Acres Martinas Point Road, Sandusky, OH Board is set to make the final moves at Benesch Friedlander Coplan and its franchisees were jointly li- in a strategy seemingly designed to and Aronoff. Benesch is able for the firing or discipline of 25 Acres Barrett Road, Sandusky, OH expand union representation in the representing the National franchisee employees who partici- Geauga County private sector. Association of Manufacturers, pated in protests calling for higher Under the Obama administration, National Restaurant Association wages, even though McDonalds 70 Acres Owens Road, W Farmington, OH the NLRB has systematically reinter- and National Waste & Recycling USA said it has no control over how 125 Acres Farmington Road, W Farmington, OH preted and expanded labor laws Association as amici curiae in a its 3,000 independent franchisees 280 Acres Snow Road, Burton, OH through a series of decisions and case titled Browning Ferris, Inc. hire, fire, schedule or pay their em- new rules. (Case No. 32 RC 109684), in ployees. Lorain County This, in itself, is not necessarily which the NLRB is considering The consequences of this new de- 20 Acres W River Rd. N & Griswold Rd., Elyria, OH surprising. Unlike courts, which the parameters of the joint finition will be dramatic for the fran- tend to hew to the precedents of ear- chise industry and for businesses employer doctrine. Summit County lier cases in deciding outcomes, it’s utilizing temporary employees. It not uncommon for the NLRB to also will have significant conse- 150 Acres Seasons Road, Hudson, OH modify how labor rules should be oughly consider the issues in- quences for those who work in those applied after a new party takes of- volved. industries. David C. Wagner or William P. Nice, Jr. fice. More importantly, it will force The National Association of Man- The news here is that, in this case, employees to make decisions with- ufacturers, National Restaurant As- 216.360.0009 the five-member NLRB is putting its out being able to vet both sides of sociation and National Waste & Re- HannaChartwell.com efforts to strengthen unions ahead the argument. cycling Association have all warned of its mission to protect employee In essence, the NLRB is saying the that any joint employer definition rights. union is here to help — trust them. that includes the indirect or poten- Section 7 of the National Labor The board also is considering tial control of a worker would com- Relations Act, which is the very heart whether to broaden the 30-year-old promise their members’ ability to of labor law in the United States, definition of “joint employer,” operate and “provide employment says that employees “shall have the which could fundamentally alter the opportunities in a stable, pre- right to self-organize, to form, join or way businesses utilize temporary dictable environment.” assist labor organizations … (and) employees through staffing agencies In other words, those businesses the right to refrain from any or all of and expand through franchise may be forced to find a model that such activities.” Section 7’s entire fo- agreements. doesn’t subject them to liability. cus is on employees, not unions or Traditionally, businesses have That’s not good news for the mil- employers. been considered joint employers lions of people currently working for Yet, the NLRB is expected to im- when they actively share control staffing agencies and franchisees. plement new union elections rules over the terms and conditions of an Employers will need to assess within a few weeks that will dramat- employee’s employment. how to deal with these new rules. ically limit an employee’s ability to If that’s the case, those business- With the new election rules, em- receive information before having to es are on the hook for any unfair la- ployers will need an ongoing cast a vote for or against union rep- bor practices involving their shared union-free program and a rapid-re- resentation. employees. sponse team that can be launched Once in place, these new “quick- Now, however, NLRB General as soon as union organizational ac- ie” election rules will, in most cases, Counsel Richard F. Griffin is urging tivity occurs. require ballots to be cast within 14 to the board to broaden the definition Employers also will need to ana- 21 days of a union filing a represen- to cover businesses that indirectly or lyze how and when they engage tation petition. The average time potentially control the terms and leased employees to make sure they now is 38 days, a historic low. This conditions of a staffing agency’s or a aren’t unwittingly exposing the busi- shortened timeframe will make it franchisee’s employees. ness to liability. virtually impossible for employers While it might appear slight, this It is not an impossible task. to effectively publicize information change would mean that businesses But at the very least, it will mean about the benefits of remaining could be held liable even though that employers will have to shift union-free once an election peti- they had no involvement in the time and resources toward risk tion is filed. Two to three weeks just staffing agency’s or franchise own- management and away from grow- isn’t enough time for employers to er’s employment decisions. ing their business, which is not good communicate their message in a Griffin previewed his version of for anyone, particularly the employ- way that allows employees to thor- the joint employer definition last ees.

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AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 UNIVERSITY CIRCLE BUILDING A NEIGHBORHOOD

REBECCA R. MARKOVITZ

Trading their house in the A cultural mecca, for many suburbs for a three-story townhome in the heart of Vibrant medical, educational and arts district draws diverse population of residents University Circle is just the

By CHRISSY KADLECK trict that rivals coveted live-work-play metropolitan areas. residential about-face Fred [email protected] “This city feels like a cosmopolitan 21st century, diverse, international, transit-oriented walking city,” he said. “In our neighbor- and Nissa Franks plan to elcome to the fastest-growing employment district in North- hood of University Circle, you could be in Shanghai, you could be W east Ohio and the city’s fastest-growing residential neighbor- in New York, you could be in Chicago, you could be in Bogota, but make this fall with their hood outside of downtown. you’re in Cleveland. It’s exciting.” It’s no surprise and certainly no accident that this square mile is From 2000 to 2010, the area grew 17% from its base population children. The urban in its third wave of growth and development, said Chris Ronayne, and is now home to some 9,366 residents. Demographic trends president of University Circle Inc., the nonprofit that has led the show the area is drawing those who are younger and international, switch-up dovetails strategic advancement of University Circle by leveraging anchor Ronayne said. eds, meds and arts organizations and helping to develop a spec- “But the reality is we are diverse in race and age, and we’re one perfectly into the couple’s trum of residential projects that capture a growing number of proof the most diverse in the state of Ohio,” he said. Recent data from fessionals, millennials and internationals. In fact, UCI is on track to one new development in the area revealed that 95% of residents desire to drive less, walk accomplish its goal set in 2007 to create 1,000 new housing units in were from outside the state and coming to go to school or work at 10 years. one of the institutions, and of that total, 25% are from out of the more and offer their boys “It really is a showplace for re-energizing an urban communi- country. ty,” he said. “It’s been strategic, building off improvements like Job growth in the “eds and meds” has led to an increasing pop- – 6 and 7 – an engaging the Euclid Corridor, building off the millennials’ return to cities, ulation, according to Ronanye, who added that it’s growth “we building off internationals’ interest in being a part of a transit-ori- have captured in this marketplace by providing quality upscale homeschool education ented neighborhood and working off strategic policy initiatives new product or renovated product in an exciting neighborhood like the Greater Circle Living program to incent workers to live … We think we’re up over 50,000 employees now.” surrounded by arts and here.” The Greater Circle Living program offers one month’s free Think physicians, nurses, researchers, specialists, university rent or up to $30,000 in forgivable mortgage assistance to those professionals, fellows, residents, hospital administrators and culture. Living across who move to University Circle or adjacent neighborhoods. graduate students, among many others. Ronanye’s more than proud to rattle off an impressive list of job “Circulating in this district is what we call the complete neigh- from a baseball field and population gains that have been essential building blocks of borhood where everything can be accessed including a job in a University Circle’s transformation into a vibrant mixed-use dis- See LIVE, page 18 doesn’t hurt either. 20140818-NEWS--14-NAT-CCI-CL_-- 8/14/2014 3:01 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014 Efforts gel to connect communities, institutions Greater University Circle Initiative aims to balance interests of residents with goals of ed, med giants

By LEE CHILCOTE Physical development dreds of new jobs to Midtown, and [email protected] the Opportunity Corridor project Historically, there has been a ANCHOR DISTRICT COUNCIL COALESCES could help attract new businesses to great divide between the prosperity At a recent Wade Oval Wednes- East 105th. Like Cleveland, many cities have Ronayne believes there are of University Circle institutions and day concert, a large, diverse crowd “In terms of community develop- large anchor districts or “second lessons to be learned from organi- impoverished neighborhoods such from across Greater Cleveland ment, we’re just getting going,” he downtowns,” where major hospi- zations like UCI, which has lever- as Hough, Glenville and Fairfax. Lo- danced to Latin music, ate ice says. “We can create (housing) that tals, universities and cultural institu- aged the area’s real estate assets cream cones and took advantage of cal residents complained that insti- works for Cleveland Clinic workers tions are located. The Uptown to provide shared public services, free health screenings offered by tutions had built up walls around and long-standing residents of District in Cincinnati, Midtown in including a police force. the Cleveland Clinic and University their castles. Hough.” Hospitals. Detroit and Oakland in Pittsburgh Anchor districts everywhere are “If you look at how they devel- This summer, University Hospi- are examples. models for economic growth, he oped their campuses, they really tals launched Step Up to University And, in recent years, these dis- says, with institutions like the turned their backs on the neighbor- Live, buy and hire local Hospitals, a new program geared tricts have emerged as powerful Cleveland Clinic spinning off star- hood,” says India Pierce Lee, pro- Another goal of the Greater Uni- toward helping job seekers who live drivers of the new urban economy. tups and growing the economy. gram director for neighborhoods, versity Circle Initiative has been to in and around University Circle find A few years ago, these anchor “If you have eds and meds, then housing and community develop- encourage more employees of insti- jobs at the institution. UH is part- districts started banding together you have growth opportunities,” he ment with the Cleveland Founda- tutions to live in the immediate nering on the program with the into a new council that serves as a says. “It’s all about leverage — tion, one of the drivers behind the area. In 2012, only 4,500 Greater nonprofit Towards Employment learning exchange. taking a hub of innovation driven by Greater University Circle Initiative. University Circle employees, or 5% and the community building initia- On the heels of a 2012 confer- eds, meds and arts and making it “There was an enclave of institu- of the total, lived in University Cir- tions, with the neighborhoods tive Neighborhood Connections. ence hosted by University Circle grow.” cle and the surrounding neighbor- around them.” On Chester Avenue in the neigh- Inc., leaders from these districts This fall, the Anchor District hoods, according to a 2013 report Yet that’s slowly changing. Lillian boring Hough neighborhood, the began meeting and traveling to Council plans to hold its 2014 prepared by the Cleveland Founda- Kuri, program director for architec- Finch Group just broke ground on each other’s cities in order to learn meeting in Midtown Detroit. Up to tion. ture, urban design and sustainable 177 units of new market-rate hous- from best practices and also to this point, the council has been Since 2005, the Greater Circle Liv- ing. The Upper Chester project ulti- development with the Cleveland ing program has helped about 300 exchange ideas. unincorporated and managed by mately will consist of more than 300 Foundation, points to several phys- people to find housing in the neigh- “What we’re finding in the cities existing staff. apartments and storefronts, and ical development projects that have borhood. A little more than half of we’re studying is that the growth Ronayne says leaders will begin the developer plans to hire local better connected residents with these have received incentives, in- residents. pockets are the eds-and-meds arts looking at ways to formalize the University Circle. She also points to cluding a free month of rent, forgiv- These are just three of the pro- districts — and that in some cas- council, including creating a web- the fact that the term Greater Uni- able loans and matching grants for jects helping to connect the neigh- es, they’re growing faster than the site, developing an advocacy agen- versity Circle has been widely exterior repairs. Leaders say these borhoods adjacent to University traditional financial districts,” says da and potentially hiring staff. adopted by residents and the Cleve- modest numbers should improve in Circle with the district, tearing Chris Ronayne, UCI president. — Lee Chilcote land Planning Commission. the wake of the housing crisis. down walls that once divided the “We’re breaking down those his- The same report stated that in institution-rich area from its neigh- torical, physical and psychological 2012, the institutions spent 28% of bors and helping to create opportu- versity Circle Initiative, the effort real measure lies in how we’ve barriers,” she says. their collective $3 billion in pur- nities for residents. has spurred millions of dollars in moved the needle in terms of com- For example, the $88 million Up- chasing power on goods and ser- The net effect, say advocates, is physical development, created sev- munity development in areas town project has resulted in a new vices provided by suppliers in Cuya- that the Circle has widened, be- eral new worker-owned companies around us,” says Chris Ronayne, grocery store, Constantino’s Mar- hoga County. Approximately half of coming stronger and more inclu- through the Evergreen Coopera- president of University Circle Inc. ket, where none existed. The rede- that was spent on companies located sive. tives and helped employees to find- “When we look back 30 years from velopment of the Mayfield and in Cleveland. Since 2005, when institutions, ing housing in the area. now, we’ll be asking the question, Cedar Road RTA stations is making Finally, the Greater University the city of Cleveland and nonprofit “We’ve seen success as the hub how did we impact the neighbor- the area more accessible. And the Circle Initiative places an emphasis leaders launched the Greater Uni- of an innovation district, but the hoods?” reconfiguration of the traffic circle on helping more local residents find at East 105th Street and MLK Jr. Drive employment opportunities. Unem- — once nicknamed “Suicide Circle” ployment in these neighborhoods is because of its hazards — is making about 25%, but Lee says it’s higher if the community more pedestrian- one includes individuals who have friendly. stopped looking for work. One law firm for all business & Ronayne points farther afield, to To help create more local buying the Heritage Lane housing develop- and hiring opportunities, the ment in Glenville, the Circle East Greater University Circle Initiative finance legal needs townhome project in East Cleve- has invested in the Evergreen Coop- Business & Finance Contacts land and the Upper Chester project eratives, a group of worker-owned in Hough as examples of how the startups that now includes a green physical geography of University laundry company, a green energy Circle has widened. The Health- startup and a 3.25-acre hydroponic Corporate Finance Tech Corridor has attracted hun- greenhouse. The initiative has also Corporate Governance Mergers & Acquisitions Kevin Barnes Irv Berliner Private Equity & Venture Capital

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AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15

funded NewBridge Cleveland, a job training and youth arts program. Heidi Gartland, vice president of THE FORMIDABLE INFLUENCE OF UCI government and community rela- Chris Ronayne, president of University Cir- UNIVERSITY CIRCLE INC. MEMBERS: tions with University Hospitals, says cle Inc., has a letter on his desk from Robert The Sculpture Center UH alone has invested $1 million in Moses — the planner who shaped modern- The Temple-Tifereth Israel NewBridge and $1.25 million in day New York City — to Elizabeth Mather, The Mt. Sinai Health Care Foundation The Children’s Museum of Cleveland Evergreen Cooperatives. The new the Cleveland philanthropist who helped cre- Step Up to University Hospitals pro- The Church of the Covenant ate UCI in 1957. In the letter, Moses advises University Circle United Methodist Church gram, which was launched last year, her to create a plan for the area’s growth has resulted in 42 local hires with an Cleveland Hillel Foundation Inc. and sustainability. Mather not only followed 84% retention rate. Magnolia Clubhouse Inc. “So goes the neighborhood, so his advice, she had the foresight to create an organization that The Western Reserve Historical Society goes Cleveland,” she says. “If we served as a land bank for area institutions. The leaders that fol- Pentecostal Church of Christ have neighborhoods that have high lowed her took it a step further, creating a police force, helping Judson Retirement Community unemployment and low levels of ed- to plan new development, offering free educational programs and American Heart Association ucation, then we’re going to wither.” advocating for residents and institutions. The Cleveland Museum of Art The final goal of the Greater Uni- Today, University Circle is one of the fastest-growing employ- Cleveland Sight Center Cleveland Museum of Natural History versity Circle Initiative is to better ment centers in Ohio and a nationally-touted example of creative Cuyahoga County Medical Examiner’s Office connect residents, workers and insti- place-making. UCI has grown into a sophisticated nonprofit orga- tutions within Greater University Artist Archives of the Western Reserve nization with a $10 million annual budget, a 75-member board of American Cancer Society Circle and make sure they have a directors and a police force that’s as large as many suburban voice in community planning. Maximum Accessible Housing of Ohio ones. UCI is unique because each of its more than 40 member The Cleveland Foundation tapped Musical Arts Association Neighborhood Connections, a grass- institutions has a seat on the board and contributes to the bud- Cleveland Hearing & Speech Center Cleveland International Piano Competition roots grant-making and community get. About one-third of UCI’s funding stems from institutions, one- The Music Settlement building effort, to lead programs to third from philanthropy and one-third from real estate services. Hawken School build networks in the community. Ronayne likens UCI’s structure to the U.S. Senate — yet promises The Junior League of Cleveland Inc. Neighborhood Connections has it’s much better at getting things done. Montessori High School at University Circle helped organize innovation teams, “The smallest institutions have a seat at the table with the The Cleveland Institute of Art which spur residents and institu- biggest, just like Connecticut has a seat at the table with Texas,” University Circle Inc. tions to build on neighborhood as- he says. “I love that, because I know that the Music School Set- Cleveland Botanical Garden sets; organized communal dinners tlement needs as much as the orchestra in terms of place-based University Hospitals of Cleveland to bring neighbors together; and services.” Mt. Zion Congregational Church sponsored a “Neighbor Up” night to Whereas the organization that Mather created was primarily a Ambleside Towers promote collaboration. The Cleveland Institute of Music “How do we bring people togeth- land bank, today UCI is helping to develop some of the most Case Western Reserve University er and say, ‘It’s not us against you, exciting real estate projects in Northeast Ohio, including the MOCA Cleveland it’s us together,’” says Tom O’Brien, $65 million Uptown development and new housing in the Circle. Cleveland Friends Meeting program director of Neighborhood “Our development agenda has been to take the empty pieces Cleveland Public Library Connections. between institutions and revitalize them,” says Ronayne. Free Medical Clinic of Greater Cleveland “We’re trying to create a space “Years ago, the view of the highest and best use was parking. Ronald McDonald House of Cleveland Inc. where there’s a level playing field In the 21st century, the view of the highest and best use is Center for Dialysis Care Inc. and those relationships can hap- development.” — Lee Chilcote Gestalt Institute of Cleveland pen.”

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16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014 Strategic development key to future growth By STAN BULLARD [email protected] UNIVERSITY CIRCLE RESIDENTIAL/INFRASTRUCTURE CONSTRUCTION Commercial development with COMPLETED, CURRENTLY FOR SALE new stores and apartments that has OR LEASING NEW RESIDENTIAL recast University Circle the last four years is encountering its next chal- Hazel 8, Hazel Drive lenge: a dearth of available empty One- and two-bedroom, single-floor and multi-level sites that are under the control of floor plans University Circle Inc. and ready for development, or sites that are un- Circle 118 Townhomes, East 118th /Euclid Avenue derutilized within its square-mile Sold out project domain. Much of the building action at 118 Flats-Circle & 118 Flats-Square, University Circle was stoked by East 118th developers putting projects on sites One-bedroom units just north of the that University Circle Inc., which Circle 118 Townhomes oversees area development and provides services in the Circle, had CircleEast Townhomes, Euclid Avenue under control in a land bank 20 two-bedroom, 2½ bathroom, three-level RESIDENTIAL-PROPOSED OR INFRASTRUCTURE-UNDER through which UCI began accumu- townhomes with attached garages UNDER CONSTRUCTION CONSTRUCTION OR COMPLETED lating property in 1957 for institu- (In East Cleveland, but a project of UCI) tional expansions. One University Circle, near the Cedar-University Rapid station Originally the land bank was in- Uptown Phase I, Phase II, Euclid Avenue current site of the Children’s Museum tended to ensure that institutions Multi-use development, including one- and High-rise apartment tower with plans for Little Italy-University Circle Rapid station would have room to grow in the Cir- two-bedroom units and studio living as well as student about 280 apartments cle. However, in 2009, UCI’s board housing for the Cleveland Institute of Art HealthLine authorized its staff to try to spur Intesa, near Mayfield Avenue and 117th Street retail and residential development th Wade Park townhomes, East 118 A $110 million office, retail and apartment Opportunity Corridor to refresh the Circle and transform Five upscale townhomes, ranging from 1,700 project in a twin, 10-story tower complex it into a full-fledged neighborhood. to 2,000 square feet E.105/MLK roadway reconstruction Eight properties, all locations that 118 Flats-Oval, East 118th might have someday become valu- th University Place Townhomes, East 118 Another planned phase of the 118 Flats development, able to UCI members, were made Photo: University Place Townhomes construction Eight townhouses, 10 rowhouses and a coachhouse to the north of 118 Flats-Circle and 118 Flats-Square Source: University Circle Inc., Crain’s research available to developers. The results ranged from the Courtyard by Marriott, 2021 Cornell Road, and Uptown, a mixed-use limit the heights of potential story apartment tower dubbed One Site selections installing luxury rentals in the Park projects on those parcels to three University Circle. Lane Villas, is constructing in a joint project with retail and rental apart- The other strategy is to locate stories. The plan calls for about 280 venture with Ozanne Construction ments at Euclid Avenue and May- available or underutilized proper- apartments that will be in a struc- Co. of Cleveland a six-story apart- field Road, to the Hazel 8 Apart- ties in or near University Circle. ments at 1608 Hazel Drive. ture taller than the 200-foot W.O. ment complex at 10001 Chester High hopes Walker Building next door and be- Although finding fresh sites nearby Ave. Just three sites under UCI’s con- is new for the Circle, it is part of the trol remain available for real estate Although the carefully orchestrated low the 260-foot height permitted The 177 suites are technically regular drill for every new project development: two straddle the development of sites that UCI con- by the parcel’s zoning. in Cleveland’s Hough neighbor- that real estate developers under- Cleveland Institute of Art’s Joseph trolled launched the district’s new Schneider said the height was not hood. However, the suites will be take. McCullough Center, 11610 Euclid, activity, the next round of projects driven by the need to get a large marketed to typical University Consider Fairview Park-based and the other is on Stokes Boule- may depend on the ability of real number of units on a small parcel. Circle tenants: medical residents, WXZ Development Co.’s next pro- vard near Carnegie Avenue. estate developers to identify viable Instead, he said, the 20-story height graduate students and postgradu- ject on East 118th Street in University However, Chris Ronayne, presi- locations for additional projects. came from the desire to fit the con- ate researchers. Circle. WXZ already has built the dent of University Circle Inc., calls Examples of that traditional real text of University Circle with a Similarly, Chicago-based devel- Circle 118 project at East 118th and the shortage a good problem to estate development know-how building that would have “unparal- oper John Murphy plans to build a Euclid Avenue and just north of have and already sees how the area already are starting to be seen. leled” views of the area. The project 274-room Holiday Inn on a site there has just finished 17 units at will retain its hard-fought develop- The biggest example is at the cur- would also require rents in the leased from the Cleveland Clinic what it calls the 118 Flats project. ment momentum. rent home of the Children’s Muse- range of $2 a square foot that the Foundation at Euclid Avenue and However, it has pieced together th “Our next frontier is either in the um of Cleveland, 10730 Euclid. That city is only now reaching. High-end East 86 Street. That project will go air or in adjoining neighborhoods,” is where developers Mitchell rents are necessary to cover con- on its own the next site for its devel- up almost 10 blocks west of the Cir- Schneider, CEO of Lyndhurst-based struction costs that escalate astro- opments on East 118th. WXZ ac- cle’s western edges. Ronayne said. He said the Euclid th sites that UCI controls are suited to First Interstate Properties Inc., and nomically as buildings rise above quired five homes on East 118 on Sam Petros, CEO of Broadview the three-story level because of the the north side of the entrance to dense, multi-story development. Up or out However, on Stokes, the sloping Heights-based Petros Homes, have need for larger foundations and East Cleveland Cemetery. That site, topography of the sites likely will proposed building a more than 20- structural supports. where four of the homes have al- Those projects lend credence to “Yes, we will be coming in at the ready been demolished will be- Ronayne’s feeling that there are op- top of the market in rents. We will come a second phase of the 118 portunities for projects “all around not be at the top of the market in Flats that will add another 30 units the dial” from University Circle. terms of the number of people who to the Circle. Those projects will serve the market want to live there,” Schneider said. WXZ plans to soon seek city ap- that University Circle tenants create New apartments at such a rarefied provals to develop the additional and help transform blighted but height are planned in only one other suites, according to WXZ CEO Jim land-rich neighborhoods sur- location in the region, on upper Wymer. rounding the Circle. floors of The 9, the Streetsboro- Construction of new institutional “Gone are the days of turf poli- based Geis Cos. conversion of the buildings or other projects also tics in Cleveland,” Ronayne said. 21-story former Ameritrust Corp. change the nature of what kind of “We’re now in an era of space- skyscraper to a hotel and apart- development is possible at the Cir- based planning.” Real estate devel- ments downtown. cle by changing its context. opments in neighborhoods such as “We believe that there is a signif- WXZ has seen this first-hand. Fairfax, Hough and Little Italy will icant depth of jobs and income,” New dorms and a playing field com- continue to have their own identi- Schneider said, “with the right de- pleted by Case Western Reserve ties but will also benefit from the mographic of empty nesters, well- University several years ago proved jobs created by institutions at Uni- paid academics and doctors who crucial for WXZ. versity Circle. can afford a wonderfully appointed “There was a time when we started How far can those developments apartment within walking distance on East 118th that there was a feeling reach beyond the Circle? The key of what University Circle has to we were outside of the Circle,” constraint may be how close each offer.” Wymer said. “The (CWRU) devel- site is in walking distance to the Cir- The other side of the dynamic opment has changed the street’s cle’s institutions and how close they driving such scale is simple, accord- perception in the market.” are perceived to be to the Circle. ing to Petros. He notes the $2,000 University Circle-fostered devel- “We will all find out how far we monthly rent in suites in the build- opment is also pushing west, most can push that boundary,” Wymer ing is less than the property tax bill prominently along Chester and said. “There are already dwindling of some prospective tenants who Euclid avenues. opportunities within the boundary would be downsizing from large Boca Raton, Fla.-based Finch of University Circle.” In other homes in nearby Shaker Heights Group, which helped kick off the words, there is no choice to go up or and Cleveland Heights. apartment rush in the Circle by out from the Circle. 20140818-NEWS--17-NAT-CCI-CL_-- 8/15/2014 1:51 PM Page 1

AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Specialty shops sprout up as neighborhood prospers

By JUDY STRINGER all true, but we were just a little bit seen foot traffic at his studio in- [email protected] ahead of schedule with those eco- crease as more residential and com- nomic projections,” he said. mercial tenants move into Univer- Big-name developers and Uni- Part of his optimism also stems sity Circle. versity Circle anchor institutions are from neighborhood-building initia- That is especially exciting, he said, not the only ones basking in the glow tives that are giving a boost to small since the development is not com- of the neighborhood’s new life. businesses in and around Universi- plete and because UCI and the Up- Dozens of new businesses are ty Circle. town Business Association are ac- sprouting up in and around Univer- University Hospitals, for one, has tively helping local small companies sity Circle, feeding off expansions of committed to buy 80% local. While capitalize on the momentum. the area’s venerable health care, ed- that is more of a regional pledge, For her part, Kleinman said the re- ucation and arts organizations and entailing suppliers all over North- cent additions have brought many of ambitious development projects east Ohio, it certainly translates into the products and services needed to like Uptown. more opportunities for University support a thriving neighborhood, The number of small businesses Circle businesses, from daily cater- but more is to come. in University Circle alone — not ing and landscaping needs to con- Meanwhile, much of what it still counting growth just outside of this struction services for the never- lacks — an auto body shop, for one-square-mile area — has dou- ending list of renovation projects, example — can be found in one of bled in the last two years, according said Mary Beth Levine, vice presi- the adjacent communities. Univer- to Laura Kleinman, vice president of dent of system resource manage- sity Circle is not an island. Support- services for University Circle Inc. ment at UH. ing businesses and development (UCI). around its edges is another way to Kleinman, who oversees the Up- Sweet developments encourage prosperity within the Cir- town Business Association, said the cle, she said. bulk of those companies are retail- Revy and shop owners Shane and “It’s important to look at the oriented, including new shops, bou- Britt-Marie Culey, who opened Co- broader corridor, because we are all REBECCA R. MARKOVITZ tiques and eateries, where the grow- quette Patisserie across from the connected,” Kleinman said. Piccadilly Artisan Creamery and Coquette Patisserie are sweet new additions. ing population of residents and Cleveland Institute of Art early this visitors can enjoy “anything from year, count the local institutions macaroons and ice cream to fine among their catering clientele. dining.” Shane Culey said his French con- Homegrown Constantino’s Mar- fection shop recently delivered a SM kets opened a store in the Uptown large pastry order for nearby Cleve- development in 2012. The first two land Hearing and Speech Center. years had been a bumpy ride for the He has also done business with di- Cleveland-based grocer, said Con- visions of CIA and Case Western Re- stantino’s University Circle general serve University. manager Andrew Revy. The neigh- “There is most definitely a sup- borhood had not been home to a portive relationship between the grocery store in about 60 years, Revy large institutions and the little guys said, and established residents were like us,” Culey said. accustomed to shopping elsewhere. Local business owners say recent Such habits do not change gains, however, are more likely tied A New Hotel overnight, he said. to the overall growth of University Then there is the “massive Circle as a place to live, work and amount” of development and con- visit rather than buy-local strategies struction around the University Cir- cropping out of the neighborhood’s Landscape cle store, Revy said, which some- anchor institutions. times made it difficult for customers Culey points to anecdotal evi- to access it or parking. dence like an increase in sightings Still, Revy is optimistic about the of “scrub-wearing” customers and direction of University Circle and more couples and families stopping Constantino’s future there. into the shop before or after visiting “All the projections we did, and local museums. the economic studies that pointed In neighboring Little Italy, local to prosperous operations there, are photographer David Schwartz has

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18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014

UNIVERSITY CIRCLE PICTURING A NEIGHBORHOOD From the new Museum of Contemporary Art Cleveland (top) to colorful residential construction like Circle 118 (pictured), today’s University Circle is becoming a place to live, work and play.

PHOTOGRAPHS BY REBECCA R. MARKOVITZ

LIVE continued from page 13 buy in any nearby neighborhood 20-minute walk,” he said. “There without having to worry about are a lot of people living and work- proximity to public or private ing in the district who are attracted schools. to a high-density, walking, transit- “We see it as a good investment oriented neighborhood. We also and we really love the location be- have empty nesters and young pro- cause it’s across from the Case cam- fessionals working downtown but pus. We have the cemetery behind living in the Circle.” us and it feels like there is a lot of The Franks are a great example of green space over there and nice that. Fred, 33, who works as the walkable streets,” Nissa said. “I can chief information officer for FIT walk 10 minutes and be at the Technologies downtown, said the botanical garden, art museum or couple was interested in moving natural history museum. Everything closer to his job and slashing his that I could need is right out my long commute from Bath Town- front door. I could walk to Constan- ship. Once they move into their tino’s market. If I don’t feel like University Place townhouse he making lunch I can go to Panera. Or plans to sell his car and take the if I am having a dinner party, I can RTA’s HealthLine or bike to work. go grab some flowers at the corner. Since Nissa, 31, homeschools It just seems simpler than getting their boys they had the freedom to the car out and loading in the kids.”

LIVING IN THE CIRCLE:

Trained musicologist and guitarist Roxy DePue, 47, was thrilled to ditch his more than two hours of commuting when he moved into his contemporary Uptown apartment in December. DePue’s upscale one- bedroom apartment is only a short walk to his day job in patient services at the Cleveland Clinic, which allows him to devote his newfound free time to practicing his instrument, working out and exploring new musical opportunities in the cultural neighborhood.

From Honolulu, Hawaii, Heejin Kang moved to University Circle six years ago to pursue her doctorate in piano performance at the Cleve- land Institute of Music (CIM). The Korean-born, 29-year-old lived in the Triangle high-rise apartments for the first five years. Once she graduat- ed from CIM and was asked to join the faculty there and teach at Case Western Reserve University, she was able to move up to the next level of rental living without leaving the Circle.

Stem cell research on cardiovascular diseases attracted Dr. João Pe- dro Lopes, a cardiologist from Portugal, to move to Cleveland and take a one-year position as a research associate at the Cardiovascular Re- search Institute at CWRU in 2011. Lopes, who was asked to continue his work at CWRU and plans to apply for a medical residency and stay in Cleveland, said it has been exciting to witness the transformation of his University Circle neighborhood. “I love Cleveland and this area of the city is a really good place when you need to grow scientifically and personally,” said Lopes, who lives at University East Apartments. “All the restaurants, the new Museum of Contemporary Art, all the great assets in terms of culture but also in terms of architectural beauty, this area has become completely remod- eled and more and more beautiful by the day since I first moved here.” 20140818-NEWS--19-NAT-CCI-CL_-- 8/15/2014 1:51 PM Page 1

AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

DOWNIE PHOTOGRAPHY Music lovers congregate during Wade Oval Wednesdays, a free summer concert series at Wade Oval in University Circle.

matters aren’t helped by the fact said University Circle would have But in many cases, that’s changing. that the neighborhood’s anchor in- been described as a complete Sure, there’s still plenty of work to NEIGHBORHOOD stitutions are some of the region’s neighborhood. be done, but a big reason for Uni- major employers. One effort under That impression faded in time, versity Circle’s growth is the will- continued from page 1 accessibility has become a core value way to ease that issue includes Uni- especially in the wake of World War ingness of the local anchor institu- Circle is a roughly one-mile stretch in why a neighborhood becomes versity Circle Inc. and Cleveland II when throngs of people vacated tions — the museums and hospitals, about three miles east of down- successful,” said Lillian Kuri, pro- Heights encouraging the 3,300 peo- urban cores across the country for specifically — to work together for town. However, the community’s gram director for architecture, urban ple who live in the Heights and the suburbs. the betterment of the entire neigh- social fabric is influenced by the dy- design and sustainable develop- work in the Circle to make the trip “When you think about it, people borhood. namic neighborhoods that sur- ment at the Cleveland Foundation, in something other than single-oc- haven’t thought about this place as “The whole tenor of the culture is round it: Fairfax, Glenville, Hough, whose support for transportation cupant vehicles. a neighborhood for most of the last evolving in a very positive way,” Little Italy and others. planning spurred more than $1 mil- About 75 years ago, Ronayne century,” he said. Ford said. The Circle isn’t bound by a par- lion in support for engineering ticular ethnic group or defined by a studies for three transportation ini- single institution. Instead, it’s a cul- tiatives near University Circle. tural melting pot with a slate of “We’re on the cusp of a lot of powerhouse institutions — in many great progress, but have put in cases, competing ones — that cre- motion things to make this a district ate a sense of place unmatched in unlike any other,” she said. the region. “University Circle is one of the Completing the circle most unique neighborhoods in University Circle Inc. believes Do you know a General or In-House Counsel professional who is Ohio because of its diversity, inter- what defines a complete neighbor- national flare, architecture, densi- hood is a place where people can ty,” said Chris Ronayne, president achieve everything they need in of University Circle Inc. “University their daily living within a 20-minute raising the bar? Circle is a place of memory. It’s a walk. place everybody has a story about That could include a grocery — a first date at the botanical gar- store, housing, a variety of school den or a first beer at Euclid Tavern.” choices and access to health care. Based on those metrics, University A place to live, work, play Circle could be characterized as a complete neighborhood. Since 2000, a few billion dollars And if any of those needed daily have been invested in University amenities aren’t yet in place, they’re Circle. Anchor institutions like the likely well on the way. Cleveland Museum of Art, the “You can get the things you need Cleveland Botanical Garden, Case in every day life increasingly, but Western Reserve and University not completely,” said Terry Hospitals have pumped millions of Schwarz, a neighborhood planner dollars into their own campuses. At and director of Kent State University’s the same time, outside investors Cleveland Urban Design Collabora- GENERAL AND IN-HOUSE COUNSEL have pumped millions into new tive. “It’s starting to coalesce.” & housing and entertainment options For one, Schwarz said University SEMINAR AWARDS in the area. Circle has plenty of great civic Take the $65 million, mixed-use spaces — the cultural gardens, the Uptown development that’s slowly art museum’s atrium, the courtyard transforming the once-dead, no outside the Museum of Contempo- LAST CHANCE TO NOMINATE man’s land at the core of University rary Art, for example — but none of Circle into one of the city’s most ex- them seem to have been shared by citing urban enclaves. the public like, say, Central Park in CrainsCleveland.com/GeneralCounsel Also, University Circle Inc. is New York or Public Square in down- working with two prominent Cleve- town Cleveland. land-area developers to build a $130 Also, safety will continue to be OR CONTACT KIM HILL AT [email protected] million residential high-rise on a an issue, or at least a perceived site occupied partially by the Chil- one, much like downtown Cleve- dren’s Museum of Cleveland. The land. Matters weren’t helped earli- DEADLINE - AUGUST 24 project — One University Circle — er this summer when a group of calls for a building of 25 to 28 stories Case students were robbed at gun- premier sponsor vip sponsor in partnership with with about 280 units ranging in size point in a university building. The from 720 square feet to a 4,200- event led university officials to square-foot penthouse. launch a new crime-prevention Transportation has long been program, which included the addi- one of the biggest barriers to mak- tion of new security officers to the co-presenting sponsor webinar sponsor ing University Circle a well-rounded area. University Circle has its own place to live, though efforts are full-service police department that underway to remedy that situation. works with all of the local anchor One of those new projects under institutions’ security forces. way is a $17.5 million, Little Italy- Also, while the new transporta- University Circle rapid station at tion options could ease the crunch, Euclid Avenue and East 120th street. parking remains another issue in “Living next to fixed-rail transit the densely populated area. Those 20140818-NEWS--20-NAT-CCI-CL_-- 8/15/2014 1:53 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014 OHIO PRIVATE EQUITY AND VENTURE CAPITAL FIRMS

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AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21

# of 2013 Preferred Capital investments Name Minimum project under Address investment investment management Geographical N.E. Out of Top executive Phone/Web site (thousands) (thousands) (millions) preferences Industry preferences Ohio area Portfolio companies Title , B ,. 8> Mutual Capital Partners Funds ;*'.,0,A>*0.9 *,,8*.08 1@/G99 >>0A*> ;, B ,.&&1&$ 1GGG ?GGG)1GGGG &15G *C 9> (.0,0'E.( ,>(8 1 G 8>(0 ,*DA8'*, E. ,, 3&&G4?A,2*>,28>. 8950- 9*'.9 ' . 8,28>. 89 North Coast Angel Fund (.0,0'E0-2.* 9*. $!;$. 8800+8*B A*> @@GE# , *'(>9 ,*" 9* . 9 AB .>9( 82 A>*9 ,*08. 5.+*. &&1@& $GG $GG)@GGG 1&5G (*0 *.9>8A- .>90.>80,9 <@.5H99A8 D ,>( -.'*.'- - 8 3!GG4/;$)$!&<=CCC5.08>(09>.' ,"A.50- B. -> 8*,9 .5.(*">.5 Peppertree Capital Management Inc. *'(>0C 8* 8 !< 9>>5('8*.,,9&&G@@ @GGG 1GGGG @!G5G 0. , 0--A.*>*0.9 G@ >C08+908B>( 50C8. , 3&&G4$@!)G???=CCC52 22 8>8 2*>,50- *."89>8A>A8 0C 89 28 9* .> PNC Erieview Capital C85 .> 09> 1/GG5*.>(>51;>(%008, B ,.&&11& $GGG $GGG)&GGGG 1GGG5G .*> >> 9 0. G < H -.'*.'*8 >08 3@1<4@@@)@&/1=CCC52. 8* B* C50- 28 9* .> Primus Capital Funds (.0,0'E) ., 8*.,0-- 8 *,,*-5A,,*'. $/GG. 8800+8*B A*> @GG, B ,.&&1@& 1$GGG 1$GGG)&GGGG ;<<5; .*> >> 9. 9 8B* 990">C8 ( ,>( 11 .08-> .5H (*,,*250,. 8 3&&G4,50- . 8 0">C8 09>.5 -.'*.'28>. 89 Queen City Angels (*0.1$G)@GG ?&&G ,,9>0., *.*..>*&$@G! H H H -*, 8*A9"80- H H H (8 (*9H99A8 D 0>>09 3$1?4?;?)*(*0 H+ * D A>*B *8 >08 Redline Investments LLC 2*>, 6A*2- .>. 1G/G5@@@>5A,*&&11; $GG 1GGG H *C 9> 0.9A-, 9.*( &@H 0 8>99 8 3@1<4$G@)?;G; -.A">A8*.'9 8B* (*8-. ,>(8 *."08->*0. Reservoir Venture Partners > (.0,0'E,> 8.>*B 8*D(8 (*9 A8>*9580+ 8 ;?$ 8-*, A*> 1@G 9> 8B*,, &?G!1 $GG 1GGG . 8'E.22,* H H .>AB .>9 -.'*.'28>. 8 3<1&4!&<);@&1=CCC58 9 8B0*8B250- -> 8*,9 .0>>*9 Resilience Capital Partners 9> 8.(,"0">( H 800--A.*>*0.9 99 -.90A8 @$1G1('8*.,B5A*> ?$G, B ,.&&1@@ $GGG 1$GGG ?@G5G .*> >> 9. 2 *,9*>A>*0.9 @?,*'(>2>*0.9( 8-, > B .09 . 3@1<4@/@)G@GG=CCC58 9*,* . 2*>,50- . 08208> *B 9>*>A8 9 80A>0,A>*0.9 0)9

0">C8 99 8B* > () 8>(0 ,*DA8'*, .* ,5, -*.'28 9* .> River Cities Capital Funds *C 9>0A>( 9> -.'*.'*8 >08:C8 @@150A8>(>5A*> @&GG*.*..>*&$@G@ ?GGG ?GGG)1GGGG $?$5G *H>,.>* ., A9*. 999 8B* 9 G@ 9*'.9.5*-*0.*D 58>(E58> 8 3$1?4<@1)/;GG=CCC58"50- 0A>(C 9> 90">C8 - *, B* 9 H0825*. *'- -.'*.' ( ,>(8 9 8B* 9. .5 *8 >089 The Riverside Co. 08>(H- 8* . 8,*9>992 *,*F>*0.9 H 8 . > C8>H50(, $GA,*6A8 @/>(%008, B ,.&&11? 1GGG 1GGG)@$GGGG @(8 A>*0.= G@@+'*.'8*'-D ,F*' >(E 3@1<4?&&)1G&G=CCC58*B 89* 0-2.E50- *# >8*.*.'90">C8 80A2 0)9 RiverVest Venture Partners *, B* 9 11GGG 8HB 5A*> 1GG, B ,.&&1G< $GG $GG)<GGG @$G5G >*0.C* *0> (.0,0'E92 *,>E ?1G8E>0. *,>0.0-E 8 .2*,*F C9+* 3@1<4<$!)?/!@=CCC58*B 8B 9>50- 2(8- A>*,9 .5H,,+09.5 B* 28 9* .> Signet Enterprises LLC 0-- 8*,8 , 9>> . C *'. > B ,02- .> 1/5*'(>5H+80.&&?G! @$GG $GGG)$GGGG ??G5G *C 9>0A>( 9> > (.0,0'* 9-.A">A8*.' ??*'. >..0B>*0.9 H.>(0.E5.. 3??G4;<@)/1G@=CCC59*'. >) .> 828*9 950- ..> 8.>*0., .A9*. 999 8B* 9 H (*8-. Sunbridge Partners ,A 28+,00- ?<$/8 .0A*> 11! (C00&&1@@ 1GGG @$GG 1GG5G .*> >> 9 (.0,0'E ? ? . 8'E0.A8)2. 0(...0. 3@1<4?*8 , 99 ' . 8,28>. 8 0(.5* AF >> Triathlon Medical Ventures *C 9>,,9>' 9: *" 9* . 9- *, H+ *H 82*00, 8 A>( ..*909> ,,0 ?GG)A9*. 99EA*> @GG*.*..>*&$@&1 @$G ?GGG)$GGG 1G$5G .*> >> 9,> 8 B* 9 1<AB .>9 88* > 9-.'*.' 3$1?4;@?)@-B250- 9>' 28>. 89 Zapis Capital Group LLC ( ,>(8 .0-.0,0'E @<@G@ >80*>0A*> ?GG 9>,+ &&1&$ $G 1GG)$GG H 08>( 9>(*09> > (.0,0'E , 88 1G.> 8>*B , B ,. 2*9 3&&G4!;1)1?GG=CCC5F2*92*>,50- 09> 9, 9=-8+ >*.'90">C8 8>80A2->*9 *(0.'08.0

RESEARCHED BY Deborah W. Hillyer Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists HEALTH CARE DIRECTORY and will include omitted information or clarifications in coming issues. Our annual compilation of businesses Individual lists and The Book of Lists are available 2,500 overruns to purchase at www.crainscleveland.com. in more than a dozen health-related at Content fields, broken down by category. Marketing World! ISSUE DATE

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22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 18 - 24, 2014 RCF Group buys two local COUNTY continued from page 5 The funders likely would be to satisfy their regulatory obliga- office furniture dealers county services. Rather, he sees the foundations and banks, both of tions to meet the banking needs of subject of the pilot as a kind of pre- which already make community low- to moderate-income neigh- By STAN BULLARD sor owners had in place. ventive service that can avoid re- development investments with borhoods. [email protected] Part of the reason RCF was inter- sorting to more expensive tradi- public agencies in hard assets such In New York, a program was cre- ested in doing business in Northeast tional services like foster care and as real estate improvements or af- ated to tackle recidivism among There’s a new force entering Ohio, Robertson said, is because it homeless shelters. fordable housing loans. This pilot 2,000 recently released prison in- Northeast Ohio’s office interior sup- has been a long-term supplier to “We spend all this money, and program already has caught the mates. Most of the $13.5 million ply market. RCF Group of West KeyBank. Indeed, it was KeyBank few (children) ever get home,” he needed to start the program came Chester, a suburb of Cincinnati, is that introduced RCF, a certified mi- said. “We’ve tried everything.” “We spend all this money, from Bank of America and Merrill the new owner of the former Cuya- nority business, and Rose. Merriman said the county is Lynch. hoga Cos. of Lakewood and S. Rose Poppie Parish, KeyBank senior looking at committing $4 million to and few (children) ever get In Massachusetts, the state, with Co. of Cleveland. RCF will operate vice president of diversity and inclu- develop the program and it hopes it home. We’ve tried help from Third Sector Capital, de- both companies under its name. sion, said in a news release announc- can reduce by 25% the length of fos- everything.” veloped a program to keep at-risk It acquired both because they are ing the combination, “Their story ter care stays. young men leaving the juvenile jus- – David Merriman Haworth office furniture dealers, shows how important it is for the rest tice system from returning to the Deputy chief of staff for health and adult justice system. the same brand that RCF carries, ac- of the community, including compa- Investing in community human services, Cuyahoga County cording to Scott Robertson, RCF nies like KeyBank, to support busi- Caroline Whistler, a co-founder chairman. He said RCF wanted to ness growth, advocate for diversity A key to this and similar proof Third Sector Capital, said the enter the Cleveland market because and foster economic inclusion.” grams is developing fair and accu- interest of several local founda- funding is very much like high-risk of its size and the number of busi- RCF plans to occupy the S. Rose rate ways to measure success, tions, which see Pay for Success as loans and represents another way nesses based here with national and Co. building until it sells. Robertson which, in turn, sets the rate of re- a way to stretch their spending on that foundations, banks and others global furnishing requirements. said RCF plans to shift to a more ef- turn on any investment. social service programs. can reinvest in their communities. Clark Rose, the seller of S. Rose, ficient one-floor layout in an of- The county is working with Front- The Cleveland-based Gund “They are ways for banks, for will remain with RCF, which will fice/warehouse property after the line Services, a Cleveland nonprofit Foundation has been involved in community impact investing consolidate both operations at the downtown building trades. The that already contracts with the the New York program and is advis- lenders, to innovate with new pro- S. Rose Co. building, 1213 Prospect four-story S. Rose Co. building has county’s Alcohol, Drug Addiction & ing Cuyahoga County in developing grams,” she said. “The hope is you Ave. Tom Pons, the former owner of an asking price of $1.55 million, ac- Mental Health Services Board, to set its pilot program. get your moderate interest back, Cuyahoga Cos., is not staying with cording to a listing by Cushman & the benchmarks for success for a Banks might invest in this pro- but it’s not going to be financially the consolidated operation. Wakefield Cresco of Independence. family unification program that gram as they invest in community lucrative” like investing in a hedge The combined firms will create While Haworth is its office fur- could attract private funding. development programs — as a way fund. an office with about 25 employees. nishing line, Robertson said, RCF Robertson said RCF will not reduce carries other items for outfitting of- YOU CAN WATCH US, TOO staff because it wants to grow sales fices from some 5,000 different sup- YOU CAN WATCH US, TOO here and likes the talents of the of- pliers. RCF also operates business- Look forfor Crain’sCrain’snewnew Weekly Weekly Report Reportwebcast,webcast, which which will willhit yourhit your inboxes inbox on on Sunday Sunday mornings. mornings. To sign up, go to: crainscleveland.com/register fice designers, project managers es related to office interiors, from To sign up, go to: crainscleveland.com/register. and other personnel the predeces- managing moves to landscaping.

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AUGUST 18 - 24, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Seidman Cancer Center plots A career in the trades AUGUST 11 - 17 growth as demand grows requires a tradeoff University Hospitals’ highly regarded Sei- For men without college degrees, it might The big story: Cleveland Clinic announced dman Cancer Center is continuing to spread make more sense to move into a so-called plans to build a $276 million cancer facility, its wings. pink-collar job rather than risk male-domi- which will unite much of the cancer care current- Without offering many details, Dr. nated fields like manufacturing or construc- ly scattered around the Clinic’s campus east of Nathan Levitan, the cancer center’s presi- tion. downtown Cleveland. The 377,000-square-foot, dent, told Crain’s there were three or four The Google Street View team tours Kent State At least if they’re craving stability. seven-story facility will be north of Carnegie Av- more cancer centers in the works. University. Janette Dill, a University of Akron sociol- enue between East 102nd and East 105th streets ad- At present, there are 15 Seidman Cancer ogy professor, and her colleagues analyzed jacent to the Crile building. The Clinic expects to Center locations beyond UH’s main cancer U.S. Census Bureau data to compare how break ground on the facility Sept. 29 and hopes hospital on Euclid Avenue. Some of those to see the improvements first hand, Google low-skilled men in male-dominated occu- to have it complete in early 2017. The new facili- are in wholly owned facilities, while others is here to help. pations fared in comparison to men in ty will unite all of the treatment care teams — or- — like the one at Mercy Cancer Center in The university is the first in Northeast Ohio health care-related roles that don’t require ganized by disease group — on its main campus Elyria — aren’t owned by UH. Mercy Cancer to have its campus added to Google’s Street a four-year degree and are dominated by in one central facility. Center is part of Mercy Health, the state’s View for University Campuses. A Google women, such as nursing assistants or ad- largest health system formerly known as Maps crew recently visited Kent State’s main ministrative workers. New in town: The prospective buyer of most Catholic Health Partners. campus for two days to take more than 4,600 The verdict? of Tower City Center is Hertz Investment Group, “There’s not a significant revenue stream photos of the campus — even areas not ac- “It’s kind of a tradeoff,” Dill said. “You get a Santa Monica, Calif.-based specialist in down- that flows back,” Levitan said. “It’s a rela- cessible by vehicle. In some cases, cameras lower wages in these health care jobs, but were mounted on backpacks. town office towers with a taste for landmarks and tionship that’s focused on the care.” you have greater job stability. If you have a “This feature will allow someone who markets overlooked nationally. Hertz has been The Seidman Cancer Center has been one blue-collar job, you’ll likely have higher may be interested in Kent State to literally working on a deal with Cleveland-based devel- of UH’s fastest-growing service lines. In wages but higher susceptibility to being laid tour the campus from the comfort of their oper Forest City Enterprises for almost a year, 2011, the health system opened its free- off or unemployment.” own home,” said Justin Hilton, Kent State’s according to one of three sources who identified standing, $260 million cancer hospital. It senior associate vice president for universi- That doesn’t mean men craving stability Hertz as the bidder. Hertz, founded in 1977, has has since opened a handful of outpatient lo- ty relations, in a news release. “They can are flocking toward nursing assistant open- cations throughout the region, including a portfolio of 48 office buildings, representing walk our entire campus, and it is complete- ings, particularly because of the stigma that sites at UH Parma Medical Center, formerly upwards of 15 million square feet of office space. ly interactive and shows 360 degrees.” these roles are only suited for women, Dill Parma Community General, and St. John Representatives of Hertz and Forest City would Kent State also had a little fun with the pro- said. With that in mind, men are moving Medical Center in Westlake. not comment. ject. The university said the Google crews into more frontline-allied health jobs, in- — Timothy Magaw captured hidden items on camera through- cluding surgical tech posts and other relat- Package deal: The owner of Ranpak Corp. in out the tour, which will allow the university ed positions that often require a two-year Concord Township agreed to sell the packaging You won’t need a weekend to host virtual scavenger hunts for prizes. degree or some sort of certificate. manufacturer to private equity firm Rhone Cap- for these campus visits To view Kent State’s campus and others Dill and her colleagues will present their ital. New York-based Odyssey Investment Part- — including Northwestern University, the research Tuesday, Aug. 19, at the American ners did not disclose terms of the sale of Ranpak, You’ve likely heard how much Kent University of Michigan and Duke Universi- Sociological Association’s annual meeting which has more than 430 employees worldwide. State’s campus has changed over the last ty — visit tinyurl.com/ozxfujx. in San Francisco. The Wall Street Journal, citing a source familiar few years, and if you haven’t had a chance — Timothy Magaw — Timothy Magaw with the deal, reported that the transaction val- ues Ranpak at $900 million, including debt. The transaction is expected to be completed in the third quarter. WHAT’S NEW BEST OF BLOGS Well, well, well: Cleveland-based Bravo Well- Excerpts from recent blog entries on Auto austerity ness secured a $22 million investment that its CrainsCleveland.com. leaders say will help it get even bigger. The in- Say this for the Midwest: If you own a car, vestment from ABS Capital Partners, a venture Firing up the imagination this is the cheapest region of the country in capital firm with offices in Baltimore and San which to operate it. Francisco, will allow the wellness company to Northeast Ohio entrepreneur Garett A new survey from Bankrate.com factored add more staff, more service offerings and per- Fortune is among startup operators na- in the annual costs of gasoline, insurance haps enable it to take on more office space at its tionwide seizing marijuana-related busi- and repairs to quantify how much it costs, headquarters on Cleveland’s southwest side, ac- ness opportunities as more states move to- on average, to operate a car in each state. cording to Bravo Wellness chairman and CEO ward legalization, according to The New In Wyoming, a typical driver spends Jim Pshock. As part of the deal, ABS will take mi- York Times. $2,705 per year to operate his or her vehicle, nority ownership of Bravo Wellness. The parties Fortune runs a company called OdorNo, due largely to the $1,588 average gasoline wouldn’t disclose the size of the stake. COMPANY: The Kennedy Group, which makes odor-proof bags for human expense. By contrast, the cheapest state was Willoughby and animal waste. Iowa, where the average driver spends just Cut out: Jo-Ann Fabric and The Times said the idea for a new venture $1,942 per year. Ohio was second-cheapest, Craft Stores of Hudson said PRODUCT: ChatterAds came from tragedy: his brother was found at $1,973. The national average is $2,223. Travis Smith is out as presi- to have cancer in early 2013, and “it was so Four of the five least-expensive states dent and CEO, a post he held The Kennedy Group, which helps cus- advanced that all he could do was to try to were in the Midwest. In addition to Iowa for about three years. The tomers package, promote, identify and track live out the remainder of his life in as little and Ohio, there were Illinois ($1,999, good company said its board of di- their products, has partnered with plastic pain and discomfort as possible.” Marijua- for No. 3 on the cheapest list) and Wiscon- rectors “is undertaking a bag and film products maker Hilex Poly to na, Fortune said, significantly reduced his sin ($2,018, No. 5 on the list). comprehensive search to create ChatterAds, which the companies de- brother’s need for pain pills. Bankrate.com said Ohio has the second- identify a replacement” CEO. Kerr scribe as “a removable, portable message That gave Fortune the idea for a business. cheapest insurance costs in the country — Jim Kerr, the company’s ex- delivery system that secures to plastic bags “With more states legalizing marijuana 23% below the national average — as well as ecutive vice president and chief financial officer, in retail, grocery, hardware, mass merchant, for medical uses — and, in Colorado and relatively inexpensive car repair costs. was named interim CEO while continuing as QSR and convenience stores.” Washington, recreational ones — Mr. For- CFO. A Jo-Ann news release did not state a rea- ChatterAds, essentially, is an “in-hand tune identified one of the industry’s chal- Fulfilling a quest for fun son for Smith’s departure. Margaret Skinner, Jo- billboard that turns … plastic bags into an lenges: packaging,” The Times said. “The Ann’s director of corporate communications, opportunity” for marketing, The Kennedy old standby, the resealable plastic bag, was Lakewood is getting a new bar later this said the company would not comment beyond Group says. not sufficiently effective, especially for a month, called The Side Quest. the release. “With consumers facing today’s media regulated industry.” Nothing unusual there; Lakewood has overload, traditional message options can The story noted that he then “proposed a lots of bars. This one, though, comes from Billion here, billion there: With a bank ac- be easily overlooked,” according to the new product, odor-proof and child-resis- Sam Bridgeman, the man who writes the count bursting from strong returns on invest- company. “ChatterAds ensures messages tant marijuana bags, to OdorNo’s advisory Every Bar in Lakewood blog, in which, well, ments, the Ohio Bureau of Workers’ Compensa- reach consumers, whether the goal is imme- board. He expected the members to laugh he attempts to visit and document every bar tion proposed a second $1 billion rebate to the diate coupon redemption, driving cus- him out of the room, but they did not.” in Lakewood. 200,000-plus employers who pay premiums into tomers to other departments within the In May, The Times reported, Fortune “li- He describes The Side Quest as “destina- the system for injured workers. Gov. John Kasich store, visiting the store’s website, or return censed out production and distribution of tion for all things geek, nerd and beer.” calls it the “Another Billion Back” program. The trips to the store.” OdorNo, and he and his team began build- In a news release, Bridgeman said the bar first $1 billion rebate program ran last year. The Patrick Kennedy, vice president of sales ing FunkSac in Denver.” FunkSac bags still will offer 24 craft beers on draft and will fea- rebates are possible because BWC’s investment and marketing for The Kennedy Group, says await government approval, but Fortune ture food designed to be eaten with one portfolio is showing a return on investment of ChatterAds designed for functions including told The Times that he has hundreds of hand — all the easier for patrons to play 8.9% over the last three years, including 13.3% for retailer and vendor product promotion; thousands of orders from cultivators, dis- games that can be loaned out to play at the the first six months of 2014. If approved by the third-party advertising partnerships; brand pensaries and wholesalers. bar, including Munchkin, Settlers of Catan, BWC board, eligible private and public employers advertising; retailer-specific coupons; store He said he has been contacted by dispen- Scrabble and Life. would receive a rebate equal to 60% of premiums openings; private label; and drive-through saries in 17 of the 22 states where medical There will be lots of “console gaming, paid during the policy year of July 1, 2012, through windows promotion. marijuana was legal. geeky TV shows … trivia, theme nights, lec- June 30, 2013. See editorial cartoon, Page 10 For information, visit: “Right now,” Fortune told the newspa- ture series and live television program- www.chatterads.com. per, “it’s like drinking from a fire hose.” ming,” Bridgeman promised. 20140818-NEWS--24-NAT-CCI-CL_-- 8/15/2014 1:53 PM Page 1

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