Nearly Ready for Prime Time

20160530-NEWS--1-NAT-CCI-CL_-- 5/27/2016 2:35 PM Page 1

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VOL. 37, NO. 22 MAY 30 - JUNE 5, 2016

Source Lunch Business of Life Jeremy Paris, Group Plan Commission Executive director has steered Public Square’s $50 million rebuild. Page 22

Artist Susie Frazier The List CLEVELAND BUSINESS Largest public companies works to build a brand Pages 25, 27 Page 21 SPORTS BUSINESS Nearly ready for prime time TECHNOLOGY Force Crowdfund were way law off to ahead of slow start Cleveland Whiskey, the times StartMart among By KEVIN KLEPS first to raise cash [email protected] @KevinKleps from the masses By CHUCK SODER Scott Wolstein takes in the the- atrics — the fire-breathing score- [email protected] board, T-shirts being tossed or cata- @ChuckSoder pulted into the seats, the show-stopping player introductions The highly publicized crowdfund- — when he attends Quicken Loans ing revolution did not begin with a Arena. bang. He always makes sure to point out On May 16, it became legal for pri- when and where it all started. vate companies to raise capital on- “I share that with my friends every line from just about anyone — not time we go to a Cavs game: None of just wealthy people who qualify as this stuff existed before the MISL,” accredited investors. Wolstein said. Thirty-six companies had signed The Major Indoor Soccer League up to take advantage of the new eq- only lasted 14 seasons before it fold- uity crowdfunding law through May ed in 1992. The Cleveland Force — 25, according to the U.S. Securities owned by Wolstein’s parents, Bart and Exchange Commission’s web- and Iris, for all but one of their 10 site. Among them are two local com- seasons — didn’t even make it out of panies: the Cleveland Whiskey dis- the 1980s before the family pulled tillery and StartMart Cleveland, the plug. Photographs by McKinley Wiley which rents out desks and offices to But its impact, especially in the entrepreneurs and freelancers. fan experience aspect of sports, lived After a $50 million facelift, the newly revitalized Demand for equity crowdfunding on. has been “somewhat underwhelm- “We used to say anything short of and reimagined Public Square officially reopens in ing,” according to Bob Cohen, CEO human sacrifice we would try,” said June. But one big question remains: Who will be of the Braintree Business Develop- Cleveland Cavaliers CEO Len Ko- ment Center in Mansfield. He has moroski, who got his start in the in- responsible for keeping the project a safe, vibrant, been a member of the Crowdfund- dustry as the community relations ing Professional Association since it director of the MISL’s Pittsburgh year-round Cleveland jewel? A smart operational was formed in 2012. That year, Con- Spirit in 1983. “It was just remark- gress passed the Jumpstart Our Busi- able.” structure and long-term funding will be the keys. ness Startups Act, which ordered SEE FORCE, PAGE 8 EDITORIAL, Page 10 SEE CROWDFUNDING, PAGE 23

Entire contents © 2016 by Crain Communications Inc. INVESTING GUIDE What the new federal fiduciary rule means to you Crain’s Superstar 10 list Who’s investing, and in what? FOCUS, Pages 15-20 20160530-NEWS--2-NAT-CCI-CL_-- 5/27/2016 12:26 PM Page 1

Attracting talent with employee benefits

“ Here in Cleveland and nationwide, demand for skilled workers is surpassing even the need for traditional capital. Investing in employees is fast becoming an essential growth strategy for companies both locally and globally.”

John Masters, Managing Director Bank of America Merrill Lynch

“ Offering robust benefits tailored to your employees’ needs and preferences can help you build a stronger workforce — and gain a lasting competitive edge.”

Sam Prentis, Market Executive Bank of America Merrill Lynch

Now hiring Rethinking tradition Best of both worlds Adding a multi-generational perspective Workers of all ages now expect basic benefits, Health Savings Accounts (HSAs) are has become a priority for most companies. such as health insurance and retirement. quickly becoming popular. Companies can Hiring millennials — people born after But several newer, non-traditional benefits consolidate HSAs with other plans to gain 1980 — can help you adapt to changing are also gaining momentum. Understanding efficiencies, and employees can save for both customers, technologies and other which benefits your workers value—and short- and long-term medical costs. Education disruptive innovation. At the same time, tailoring your package accordingly—can help is essential to helping your workforce use this adding experienced workers can inject increase your appeal to employees. powerful tool to prepare for retirement and valuable experience, knowledge and healthcare at the same time. decision-making skills into your business. Popular non-traditional benefits Percent of workers who value the following: HSAs do double duty Recruitment plans Percent of companies planning to hire:

For more local insights, email us at [email protected] or [email protected].

Sources: CFO Outlook, Bank of America Merrill Lynch; 2016 Workplace Benefits Report, Bank of America Merrill Lynch General disclaimer for Bank of America Merrill Lynch, visit baml.com/disclaimer. ©2016 Bank of America Corporation. AR8WDNW3 05-16-0053.C 20160530-NEWS--3-NAT-CCI-CL_-- 5/27/2016 2:13 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 3 CBIZ at 20: Stronger, capable of more

BY JEREMY NOBILE “We’ve had great success. And I share price Its stock price, now hovering Car Act, are creating a more com- think we are positioned for even plunged to $1.06. around $10.50 a share, is the highest plex landscape that bodes well for [email protected] greater success in the future.” The manage- it’s been since the company effec- companies like CBIZ. Employee @JeremyNobile ment team was tively collapsed under the weight of benefits consulting, payroll services The implosion refreshed around its own skyrocketing growth 16 years and the technology that brings it all Jerry Grisko has a billion dollars The 20-year-old company didn’t that time. Grisko ago. together are all highly targeted on his mind. always have such a promising out- moved to COO. With its 20-year anniversary, CBIZ growth areas. The president and CEO of Inde- look. Gerard came in as has completed what Grisko said is Similarly, the Medicaid consult- pendence-based CBIZ Inc. has told Grisko assumed the role as presi- CEO with a gen- the firm’s first truly comprehensive ing practice is a focus as well. And investors the company expects an- dent and CEO this spring as CBIZ Grisko eral goal of gluing strategic plan. That’s where the goal while CBIZ is already a heavy nual top line growth of 6% to 8% as chairman Steve Gerard handed the together the dis- to “out-national the local and out- provider of Medicare services at the it continues along a multiyear reins to him in a transition plan an- parate parts that were CBIZ’s many local the nationals” came from. state level, it wants to be a bigger growth path in the wake of the last nounced years prior. He most re- and varied acquisitions. The firm is still eyeing at least player at the federal level. financial downturn. cently served as president and chief As Gerard came in, the company three or four acquisitions a year, but Grisko admits the firm isn’t in At that rate, it’ll be but a few more operating officer, a position he took was facing negative cash flow, law- likely of slightly larger sizes com- every market it wants to be in, years until the company crosses the on in 2000 after first joining CBIZ in suits and $150 million in debt. pared with years’ past, Grisko said. though. $1 billion threshold for annual rev- 1998 as vice president of mergers “Those acquisitions were small- New markets and services won’t be They have nothing in the Pacific enues. At the end of 2015, CBIZ and acquisitions. to medium-size entrepreneurially quite as significant as improving Northwest. Markets around Port- cleared $750 million in that line, Prior to that, Grisko was an M&A run private businesses with great ex- certain segments of the business land, Seattle and San Francisco are growing about 4% over 2014 and lawyer with BakerHostetler. That’s pectations by the sellers at the time and specific markets. on their radar, as well as a beefed-up nearly 30% over 2011. when he prodded CBIZ in its very that the combination of all these “Prior to that strategic plan, we presence in Silicon Valley. The Car- So how will one of the nation’s early days to hire his firm for their businesses would create this hugely were less discerning among oppor- olinas, Texas and Atlanta are attrac- largest professional service firms, acquisition work — and there was successful behemoth,” Gerard said. tunities as long as they fit our core tive regions as well where the firm which gained size early on through plenty of it. “Not only did you have economic business and within our model,” has either no presence or a smaller, an aggressive acquisition strategy Between 1997 and 1999, CBIZ failures … but also the psychological Grisko said. “Today, we have a real- less developed one. that continues today, maintain such closed at least 140 acquisitions to impact of these people saying, ‘I ly strong platform in place, so let’s The Cleveland market also falls auspicious goals in an increasingly build out its two main business spent my whole life growing this look for acquisitions that make that into that category, Grisko said. competitive market where most of channels in financial and employee business. What do I have now?’ ” platform stronger.” There’s definitely room to grow the lowest-hanging fruit already has services. Many of those deals Grisko “They really bought a boatload of CBIZ’s size and structure does, in- here. According to Crain’s 2016 Book been plucked? sourced himself. And it was during companies, claiming they were inte- deed, give it an advantage in some of List, CBIZ is the 14th-largest ac- “We’re going to out-local the na- that period Grisko transitioned to grated, and they weren’t,” said ana- niche areas over competitors out- counting firm in Northeast Ohio. Its tionals and out-national the locals,” CBIZ directly. lyst Jim Macdonald, managing di- side of the more common out- last deal here came with the acquisi- Grisko said. By late summer of 1998, CBIZ rector at Chicago’s First Analysis, sourced business services for things tion of the actuarial and retirement It’s a reference, of course, to the stock peaked above $20 a share. who follows CBIZ. “There were like payroll and human resource plan services of Akron’s Tegrit competition that CBIZ wants to But by the beginning of 2000, the some big problems, and that’s when management. And it’s going to cap- Group in 2014. dominate. While the firm certainly markets changed. Consolidators fell Steven and other guys came in as a italize on that. Overall, the growth plan hasn’t won’t overtake the prevailing con- out of favor, Grisko said. CBIZ was sort of workout management team.” A focus on midsize companies change that drastically over the trol of its global Big 4 counterparts using its stock as currency in its var- A recapitalization followed. Debt will persist, as that’s the space the years. But one thing is certainly dif- anytime soon — KPMG, compara- ious deals, and the markets general- and lawsuits were cleaned up. company knows best and the field ferent. tively, which ranks at the bottom of ly started trending down. CBIZ was officially on the path where they want to outperform The foundation under CBIZ today the Big 4, logged more than $24 bil- That’s when CBIZ pumped the that put them where they are today. competitors large and small. is stronger and more capable to lion in revenues in the 2015 fiscal brakes on acquisitions. “They’ve really turned it around,” On the accounting side, CBIZ handle growth plans than it’s ever year — it has a strategy to beat com- “If you make that many acquisi- Macdonald said. wants to do more work with private been. petitors both large and small, nations in that period of time, it will in- equity companies to service M&A “I do have a $1 billion threshold in tional and local. evitably implode,” Gerard said. A happy anniversary needs. my mind, as quickly and as respon- “I think opportunities for growth “This company imploded at the end CBIZ now marks more than 4,400 On the employee services side, sibly as we can get there,” Grisko today are greater than they’ve ever of 1999 and 2000.” employees in over 100 offices in 34 massive changes in that sector, in- said. “But we’d like to get there been in a long time,” Grisko said. By the late fall of 2000, the CBIZ states and 18 major markets. cluding impacts of the Affordable sooner than later.”

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PAGE 4 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS FOR LEASE Self-funded health plans 14720 FOLTZ INDUSTRIAL PARKWAY STRONGSVILLE, OHIO can save money, up risks NEW CONSTRUCTION TO DELIVER OCTOBER 2016 Option becoming more popular, allows firms to gain ‘control’

BY LYDIA COUTRÉ “Groups in a self-funded arrange- ACA is incenting healthier groups to ment are not required to adhere to get out of the pool, but the whole [email protected] many of the provisions required by idea was — through things like indi- @LydiaCoutre ACA, including community rating vidual mandates — to incent health- and covering what are known as es- ier people to stay in the pool or • 336,880 SF total available Business consulting company sential health benefits, and also are come into the pool.” (Building 1: 139,440 SF and Building 2: 197,440 SF) Spooner Inc. found itself facing the not required to pay some of the fed- ‘A better way’ • Space is divisible to 40,000 SF same challenge its clients and many erally mandated fees that fully in- other employers across the country sured plans do,” Polk wrote. “As a re- The general rule of thumb has • Building 1: 42 docks; 2 drive-in doors are grappling with: rapidly rising sult, a self-funded arrangement can been the bigger a company is, the • Building 2: 34 docks; 2 drive-in doors health plan costs. provide some cost savings.” more likely it is to be a good candi- Many of the Westlake-based com- Self-funded plans usually are ad- date for self-insurance, Ferguson. • 32’ clear ceiling height, ESFR sprinklers, T5 lighting, pany’s clients were on what chief ministered by a third-party adminis- But smaller companies have begun DPSOHSDUNLQJWUXFNFRXUWDQGRIÀFHWRVXLW marketing officer Andy Lembach trator or a traditional payer. Medical signing on. • Minutes from I-71 and I-80 (Ohio Turnpike) calls the “hamster wheel” Mutual provides certain self-funded Cleveland-based Admiral Prod- “Every year, everyone dreads shop- ucts is into its fourth year using a TERRY COYNE, SIOR, CCIM ping for the next plan (during) open “Companies are self-funded insurance model for its Vice Chairman enrollment,” Lembach said. “And you 38 employees. CEO Vincent Hvizda 216.453.3001 get a bunch of quotes from people, certainly seeing a kept watching premiums grow every www.TerryCoyne.com [email protected] you go with the cheapest one, and year, sometimes reaching into dou- then the next year they jack up the ble-digit increases. rates, and then you’re in this viscous lot of disruption in But three years ago, that increase and you’re doing it all over again. was going to be more than 25%, he There’s seemingly no control.” the marketplace said. Last year, Spooner, which em- “I about fell off my chair,” he said. ploys about 130 people, switched to over the last “There’s gotta be a better way to do self-funded health insurance, a several years. ... this.” INVEST IN model in which an employer pro- For his company, there was. Since vides health benefits to employees then, self-insurance has saved about with its own funds. It’s typically a By setting up your $150,000 a year, or 12.5% when com- NORTHEAST OHIO cheaper option, but the employer pared to fully insured options, Hviz- then assumes the risk for paying own health plan, da said. claims, versus the traditional fully He gets regular reports of claims, insured model in which insurance you have more giving him a sense of health issues carriers bear that risk. within the company. It’s always The self-funded option emerged control over your summaries and never identifiable, for large, multistate employers after but the information has provided a the Employee Retirement Income future in terms of basis for him to set up a wellness With our team of credit unions, Security Act of 1974 exempted self- costs and how program within the company, to CBS will ﬁ nd the right loan structure for funded plans from state regulation, hopefully further control costs. said Mike Ferguson, president of the Spooner, the Westlake consultan- your commercial real estate investment. Self-Insurance Institute of America. benefits are cy, also is looking into instituting a The option has migrated down wellness program. Lembach said market ever since, with midsize and provided to your they never would have considered smaller companies making the taking more ownership of employee switch from fully insured benefits. employees.” health in a fully insured model, because they didn’t know what the is- Contact Jonathan A. Mokri That has accelerated through health — Mike Ferguson, president of the sues were. care reform. Self-Insurance Institute of America 440.526.8700 • [email protected] “Companies are certainly seeing a The aggregated data he now gets www.cbscuso.com lot of disruption in the marketplace let him know that about 60% of his Providing Commercial Loan Financing over the last several years,” Fergu- arrangements in its options for small medical costs was coming from pre- in Partnership with Area Credit Unions SM son said. “They want to be able to in- group customers, Polk said. scription drugs. A switch to generics sulate themselves somewhat from The acceleration of employers this year has saved the company that and by setting up your own shifting to self-funded plans is an money “hand over fist” in the first health plan, you have more control unintended consequence of the Af- quarter. over your future in terms of costs fordable Care Act, said Tom Cam- “We see that people (are) going to and how benefits are provided to panella, director of the health care the ER instead of establishing a rela- your employees.” MBA program at Baldwin Wallace tionship with a primary care doctor. University, They don’t have a primary care doc- Worth the risk? And that trend further exacer- tor because they’re not doing their Does your parking lot But of course, there is that trade- bates the problem. general screening,” Lembach said. off. Although companies aren’t pay- The insurance health pool of all “We didn’t know any of that before, so look like this? ing traditional premiums to insur- covered individuals now includes this transparency is very powerful.” Then it’s time to make a call to: ance carriers, they are on the hook sicker, costlier individuals, since the In the first year, Spooner saved for claims as they come in. Affordable Care Act prohibits insur- between $300,000 and $400,000 on Dan Polk, Medical Mutual of ers from denying people coverage. premiums. There were some admin- Ohio’s vice president of small group But with not enough young healthy istrative costs associated with man- 800.PAVE.NOW sales, said it is “extremely impor- people enrolling, premium costs are aging a self-insured plan, but that tant” for groups to understand that rising. was only a fraction of the savings. self-funded plans pose these greater As those costs soar, smaller em- Spooner has started recommend- financial risks. ployers with generally healthy, low- ing that clients shift to the self-in- He has seen considerably more cost employees — and therefore less sured model. One client told Lem- interest from groups in the under- financial risk — are more likely to bach it would be the “easiest sell 100-employees market to offer some switch to a self-funded plan and exit you’ve ever had.” form of a self-funded health insur- the fully insured pool, Campanella Already, two have made the shift ance option, particularly since the said. and Lembach said he expects more of Quality and Excellence in Affordable Care Act was signed into “We’re back to another unintend- the more than 3,000 employers Asphalt Paving Since 1939 law in 2010, he wrote in an email. ed consequence of it,” he said. “The Spooner works with throughout Ohio.

• Asphalt Paving • Pavement Milling Volume 37, Number 22 Crain’s Cleveland Business Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for (ISSN 0197-2375) is published weekly at 700 West change of address. For subscription information and delivery con- • Pavement Marking • Hot Mix Production Facility CLEVELAND BUSINESS St. Clair Ave., Suite 310, Cleveland, OH 44113- cerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 1230. Copyright © 2016 by Crain Communications 48207-9911, or email to [email protected], or • Concrete and Excavating Services 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 Inc. Periodicals postage paid at Cleveland, Ohio, call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all oth- Phone: (216) 522-11383; www.crainscleveland.com and at additional mailing offices. Price per copy: er locations), or fax 313-446-6777. $2.00. POSTMASTER: Send address changes to Reprints: 212-210-0750 Crain’s Cleveland Business, Circulation Depart- www.RonyakPaving.com Krista Bora [email protected], ment, 1155 Gratiot Avenue, Detroit, Michigan Customer service and subscriptions 48207-2912. 1-877-824-9373. 877-824-9373 REPRINT INFORMATION: 212-2210-00750 20160530-NEWS--5-NAT-CCI-CL_-- 5/27/2016 12:28 PM Page 1

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PAGE 6 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS For Sale - 34.77 Acres Prime Commercial Land New hotels cast wide net Local spots have found no shortage of job candidates BY STAN BULLARD

[email protected] @CrainRltywriter

Although he has 20 years of experience in restaurants, Andre McFar- land’s new job as a steward at the Hilton Cleveland Downtown is his first turn at a hotel. 24700 Miles Road, Bedford Heights, OH “I felt blessed,” McFarland said of landing the job keeping the kitchen stocked and ship-shape, because he • 810’ of Frontage on Miles Road • Freeway Visibility to I-271 had been out of work for a few • Zoning Permits Retail or Industrial • Great Access via I-271 and I-480 months after being downsized from his prior job. He’s also played a part Final touches are being applied to the Hilton Cleveland Downtown. To in the all-hands-on-deck period for Tony Visconsi R.M. (Mac) Biggar, Jr. see a gallery of the Hilton construction from start to (nearly) finish, go 216.861.5349 216.839.2020 staffers at a hotel opening, even breaking down cardboard boxes to to crainscleveland.com. (Stan Bullard photos) [email protected] [email protected] HannaCRE.com keep the busy loading dock clear. More online and in print: Read a McFarland is one of 200 hires at Business of Life profile of artist the 369-person Hilton workforce Susie Frazier, who is doing art who don’t have prior hotel experi- installations in the hotel, on Page ence. That’s partly a strategy on Hilton’s part, and in part a reflection 21. See a video of the process on that unemployed workers are still crainscleveland.com. seeking work. That helped the industry dodge a worker shortage in a buzz regarding her love for Hilton period when hiring was underway in and the opportunities we are provid- the region’s hotel industry due to a ing,” Agosta said. plethora of new properties. “Individuals who never even David Sangree, president of Hotel thought about working at a hotel be- & Leisure Advisors, said he does not came interested in working for the believe Cleveland has ever added so Hilton and pursuing a career in hos- many rooms in a four-month period pitality,” she said. Hilton interviewed before, nearly 1,386 between the more than 1,300 people at its April 600-room Hilton convention center hiring fairs, she said — and hired 267 hotel at Lakeside Avenue and On- After being downsized from his team members on the spot. tario Street as well as the Drury Plaza prior job, Andre McFarland “felt By the numbers Hotel, the Kimpton Schofield and blessed” to get his new job as a the Holiday Inn Cleveland Clinic. steward at the Hilton. How much total hiring has gone REDEFINING CORPORATE Moreover, more than 1,000 rooms on in the region between the boom are under construction in the re- there was competition for talent be- in downtown and suburban hotels is HOSPITALITY gion’s suburbs as the hotel industry fore his staff of 40 opened the prop- notable. CONTACT ONE OF OUR EVENT PLANNERS TODAY! more than makes up for lost time erty on March 8 at 2000 E. Ninth St. The Ohio Bureau of Labor Services 440.449.0700 • [email protected] during the Great Recession, when “To a certain extent, we competed reports the category for accommoda- real estate lending, especially for the for applicants even though the tion and food services — which precarious hotel category, dried up. Drury was not there yet in terms of lumps hotels and restaurants togeth- “I’ve not heard anyone complain- hiring,” Gurgiolo said. “We found er — in the Cleveland-Elyria Metro- ing,” Sangree said, though he knows applicants were weighing all the op- politan Statistical Area added 2,200 hoteliers were worried about the hir- tions. We got questions about the jobs to 87,900 in April from 85,700 in ing frenzy on the front side. Other culture of the company. It was being March, a gain of 2.6%. However, over regions are not so lucky — even part of this opening team at this ho- the last year, the MSA gained 6,200 without an epic bulge in supply. tel or that one. It’s an exciting thing jobs, a 7.6% increase, from 81,700 in Sangree said on a recent business to be part of a hotel’s opening team. the like month in 2015, though trip to the Catskills, he found hotels It’s a rarity in Cleveland to have this monthly numbers fluctuate. importing foreign workers to allay a many opening at once.” Steve Groppe, general manager of worker shortage. For its part, Hilton wanted to en- the Renaissance Cleveland Hotel, 24 sure it made a positive impact on the Public Square, said he believes that Attitude, not aptitude We Protect. You Grow. region, according to Teri Agosta, the increase is reasonable given that job Scott Schmelzer, general manag- Hilton’s general manager who came growth in the sector “is even deeper er of the Drury Plaza Hotel, which here from Phoenix for her first hotel- than just the hotels. You have all the opened April 29 in the former Cleve- opening experience. new Flats restaurants staffing up as land Board of Education Building, “It’s not typical to hire non-hotel well. It’s great for the city.” 1301 E. Sixth St., said filling a total of individuals, especially for an open- Richey Piiparinen, a senior re- 70 full- and part-time jobs by April 5 ing,” Agosta said. search associate at Cleveland State was “not as difficult as I thought it “We specifically decided to take University’s Center for Population would be.” An advantage of the ho- this strategy. We wanted to make a Dynamics, joked that “the jobs are tel industry, he said, is that it can of- difference in the community, offer not an illusion. Go to the Drury and ten import people from other indus- careers to people who have an there are people working there a few tries if the candidates are sociable amazing hospitality spirit and then months ago.” He said the growth on and service-oriented. train them the Hilton way,” she a percentage basis is gaining nation- “We’re all competing for the top added. “We did not want to take too al attention because it has occurred candidates,” Schmelzer said. But the many people from the local hotels for several months. pool of job-hunters was huge; the because our philosophy is it’s not With hotel opening crews staffed, Drury could pick from 1,200 appli- about the Hilton Cleveland; it’s the region’s lodging business can move on to its next challenge of getting We defend our clients from risks, teaming with cants. He estimates about 30% of his about the city of Cleveland. We associates are new to the lodging trade. made an extra effort in hiring people groups here to put heads in beds after them to realize rewards, growth and innovation. At hotels, it’s a given that there are with no experience, people out of the Republican National Convention. always jobs, albeit often paying work and people reflective of the However, going forward, McFar- Environmental Risk Health & Wellness poorly at the lower ranks. But hiring community. We hired solely based land, of the Hilton, has in addition to Property & Casualty High Net Worth for a new hotel is a different situa- on attitude, not aptitude.” the prized job a ceremonial coin that tion. Many jobs get filled in a short The hotel even hired a chief en- the hotel gave the first 100 of its LEARN MORE J www.armadarisk.us period. gagement champion, Kelly Rose, in opening team hires. One side has a Even though there’s not been a October who spoke with local non- 76, reflecting he was the 76th hire, CLEVELAND TAMPA shortage, Kimpton general manager profit groups, community colleges while the other has an etched image Adam Gurgiolo said he could tell and universities to “create a huge of the 32-story hotel. 20160530-NEWS--7-NAT-CCI-CL_-- 5/26/2016 4:22 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 7

Fab Labs are “critical” to helping young children become educated in the digital economy, OneCommunity CEO Lev Gonick said. (Contributed photos) Cleveland is key spot for Fab Lab concept

BY RACHEL ABBEY McCAFFERTY tronic tablets, where students can The Bay Area Discovery Museum in U.S. Department of Education, said play,” Doggett said, and they learn design products, and more industri- California, which volunteered to be the administration wants to see about science on nature walks. But [email protected] al machinery like laser cutters or first, had a soft launch in January STEM education included at it could be expanded upon if teach- @ramccafferty CNC machines, which turn those and a hard launch in May. Morrison younger ages. In April, the White ers had more support and were tak- designs into something tangible that said plans are also underway to es- House held an event to highlight ing a scientific approach. Doggett A Cleveland-based organization is students can use to construct their tablish pilots at a small number of these efforts, which included TIES’ said the TIES program brings to- looking to help children become designs. Head Starts. early childhood Fab Labs initiative. gether digital, creative and building makers at a young age — a very Lev Gonick, CEO of OneCommu- The White House can’t endorse STEM education is already part of skills, which she found exciting. young age. nity, which has traditionally encour- specific approaches, but Libby early education, but often under dif- “I think in some ways we have un- TIES, the Teaching Institute for aged the use and adoption of ultra Doggett, deputy assistant secretary ferent words. Young students learn derestimated young children,” Excellence in STEM, is behind a high-speed internet, has long been for policy and early learning at the about engineering through “block Doggett said. push to establish ear- involved in TIES. He ly childhood Fab “We’ve had the said he thinks the Labs in locations like early childhood Fab schools, childcares chance to really Lab idea is “critical” and children’s muse- to helping young ums across the coun- prototype Fab children become ed- try. ucated in the digital The mission of Labs for the economy. The Fab TIES is to make sure Labs represent play, children everywhere country and the he said, plus discov- have access to a world in ery and experiential STEM education, learning. helping them make schools. They’d And TIES has plen- sense of the world, ty of experience in said president and been around, designing Fab Labs helps create CEO Jan Morrison. for schools. Your legacy This means TIES’ but not in One of its early work includes a lot of projects in Cleveland a healthier community. behind-the-scenes schools. And was helping with the design of Fab Labs, we’ve also design of Mc2 STEM STEM schools and High School, which STEM networks by prototyped has three in-house 38 consultants across Fab Labs and one Leave our legacy. the globe. processes mobile lab, Morrison Remember University Hospitals in your estate plans. The organization said. The presence of got its start in 2002 in around it.” a Fab Lab was a first Baltimore but moved for schools, she said, to Cleveland almost — Jan Morrison, president which has meant om nine years ago. and CEO of TIES that the way Fab Around that time, the Labs are used for generation to generation Bill & Melinda Gates teaching and learn- Foundation, which TIES had been ing is often determined by how it’s working with, had been encouraging being done in Cleveland. To Heal. Enhancing patient care, experience and access the group to go to Ohio to set up a “We’ve had the chance to really To Teach. Training futur statewide STEM network, Morrison prototype Fab Labs for the country said. Two of her children had moved and the world in schools,” she said. To Discover. Accelerating medical innovations and clinical research to the city. And Morrison, a teacher “They’d been around, but not in and school administrator of 35 schools. And we’ve also prototyped ovide the years, said she felt the city had a lot processes around it.” of opportunity. About a year and a half ago, Mor- e that we have for 150 years. The size of the city was right, and rison said she heard a lot of talk e making a difference. she likes that the city “knows what it around the idea of pushing compu- is to prototype.” Instead of immedi- tational literacy “earlier and earlier.” ately disregarding ideas, people find The idea is similar to language learn- To learn more, contact our gift planning team ways to get them done for students, ing, in that the younger students are she said. when they start, the better they’ll at 216-983-2200 or visit UHGiving.org. “I have not looked back for a learn. At the same time, there were minute,” she said. “It was the city to lots of conversations around the move to.” idea of helping young students do Now, one of the group’s main ini- more “tinkering.” tiatives is creating Fab Labs in early Morrison saw an opportunity to education, which are designed to be bring representatives from both of more than just a tech-filled play those conversations, like the Nation- area. Fab Labs, which are similar to al Science Foundation, the U.S. De- maker spaces, are affiliated with the partment of Education and FableVi- Fab Foundation and the Massachu- sion, together to address the issues setts Institute of Technology. The at hand. By the end of the group’s designs for the early childhood labs first meeting, participants had de- include digital equipment like elec- cided to design a possible prototype. ©2016 20160530-NEWS--8-NAT-CCI-CL_-- 5/26/2016 3:54 PM Page 1

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ond game of a best-of-three series, and Garofolo said fewer than two FORCE days before the series finale, the CONTINUED FROM PAGE 1 team had sold fewer than 800 tickets. The Game 2 comeback, howev- Smoke machines, lasers and blar- er, had been broadcast on radio and ing music were the norm in the TV in Cleveland, and the contest MISL. The Spirit had a “Hot Legs” aired again overnight. promotion, the St. Louis Steamers By the following morning, Garofo- threw roses into the crowd as a thank lo said every phone line was lit up you to their large female following, with people trying to purchase seats. and Baltimore Blast home games The deciding game ended up draw- featured a soccer ball-shaped space- ing 19,106 fans — leading to massive ship that descended from the rafters. traffic jams on the interstate for an Nothing, however, seemed to beat area that wasn’t accustomed to ca- the Force, whose Darth Vader mas- pacity crowds. (The Cavs, who were cot grew so popular that the Wol- in the final season of the woeful Ted steins once received a cease-and-de- Stepien era, averaged 3,916 at the sist order from Lucasfilm founder gate in ’82-83.) George Lucas. “We won that game and ad- “We had a tunnel with running vanced to the next round, and we lights and smoke,” Scott Wolstein had a story to tell,” Garofolo said. said of the setup at the old Richfield “We had captured lighting in a bot- Coliseum. “We’d roll that out be- tle.” fore the game and the arena would The Wolsteins — “master marke- be completely dark. The tunnel teers,” as Garofolo calls them now would light up and smoke would — capitalized on all of the attention. rise, and the theme from ‘Star They urged fans to buy tickets in Wars’ would come on, and then a advance. The season-ticket base ex- guy in a Darth Vader costume panded from 600 to 6,000, and the The Force were the subjects of a would come running out of the tun- average attendance doubled from 1984 Sports Illustrated story. nel and point a lightsaber to the 6,609 in 1982-83 to 13,692 in ’83-84. sky. The place would go absolutely (Contributed photo) Three years later, it reached a peak bonkers.” of 14,111. It was all part of one of the best The power of ‘free’ Garofolo said Bart Wolstein intro- shows in sports. Beginning in 1982- duced the buy-one-get-one-free, or 83, the Force outdrew the Cavs at the Paul Garofolo, who joined the BOGO, concept, which “was un- Coliseum for five consecutive sea- Force in 1981 as the director of pub- heard of in sports.” Second-tier sons. In 1983-84, the MISL club had lic relations and eventually rose to seats, which were priced at $10, almost a 3-to-1 edge on their NBA vice president and general manag- were offered for $20 each, but the neighbors, with an average atten- er, said Bart Wolstein was ready to second one was free. dance of 13,692 that was 8,617 ahead give up on soccer in Cleveland in “Bart used to say free was the of the Cavs. 1983, during halftime of a first- most powerful word in the English The Force weren’t alone, either. round playoff game against the language,” Garofolo said. A 1984 Sports Illustrated story Chicago Sting. Scott Wolstein, who used his legal mentioned how indoor soccer teams “We were getting beat. There was a connections (a law school friend were “clobbering their basketball lousy crowd,” Garofolo said, “Bart was an attorney for Lucasfilm at the neighbors” at the gate. At the time, said, ‘I think I’m done with this. I time) to help bring Darth Vader the MISL’s Kansas City Comets were think on Monday I’m just going to call back after a one-year absence, said, outdrawing every NBA team with a it quits. I’ve given this town a playoff “We took the worst seats in the end norm of almost 16,000 per game. team. What else can we do?’ ” zone and basically doubled the “It was really ahead of its time,” It turned out, a lot. price and people gobbled them up.” Komoroski said of the league. The Force outdrew the Cavs for five straight years. (Contributed photo) The Force rallied to win the sec- CONTINUES ON PAGE 9

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CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 9

CONTINUED FROM PAGE 8 Notable MISL-NBA moroski said. Almost three decades later, every The Force once drew 21,000 to a connections sports team seems to be taking the preseason game after giving away Len Komoroski — MISL approach of trying to one-up free tickets, which fans had to pick The CEO of the Cavaliers and Quicken Loans Arena was the director the others. MISL vets such as Ko- up at a local Revco, a drug store of media and community relations for the moroski and Garofolo credit indoor chain with which the team had a MISL’s Pittsburgh Spirit from 1983-86, and soccer for what we watch and hear partnership. Cavs fans might be fa- later served as assistant GM of the now at games. miliar with such a ploy, since the Minnesota Strikers. “The MISL was the precursor to team for years has used Discount Tim Leiweke — A former president and GM what you’re seeing in the NBA to- Drug Mart locations as a pickup of the MISL’s Kansas City Comets and day,” Garofolo said. “We did any- spot for preseason tickets. assistant GM of the St. Louis Steamers, thing we could to entertain the Then there were the players, who Leiweke went on to serve as the president crowd. It was just the right time in in addition to producing postsea- of the Denver Nuggets. He was also the history. People were looking for son runs in each of the Force’s final first employee hired by the expansion more out of their sporting events, Minnesota Timberwolves in 1989. five seasons, were more present in and we were able to deliver it to the community than possibly any Chris Wright — He’s been the them.” other professional athlete in town. Timberwolves’ president since 2004 and The Force weren’t just the th Kai Haaskivi, a two-time first- just completed his 25 year with the league’s signature franchise in organization. Prior to the NBA, Wright was team all-MISL selection, estimates terms of their popular, otherwordly that he would appear at nearly 60 the GM of the Pittsburgh Spirit and Minnesota Strikers. mascot. Force-branded soccer camps each The franchise’s annual revenues summer. Force players who had Jerry Buss — The late Los Angeles Lakers reportedly increased from $550,000 owner also owned the MISL’s L.A. Lazers. year-round contracts were required in the Wolsteins’ first season to $3.8 to work at the camps, and those Don Carter — The former Dallas Mavericks million in their final campaign as who weren’t were paid weekly for owner presided over the Dallas Sidekicks owners. Scott Wolstein said the their services during the summer. for two seasons. team was profitable in its final two “We saw 10,000 kids every sum- Others of note seasons, making a “few hundred mer,” said Haaskivi, who now runs grand” in that time. a soccer academy in Sarasota, Fla. Former San Francisco 49ers owner Eddie DeBartolo Jr. and late former Miami But the league had little TV rev- “They became friends of ours and Dolphins owner Joe Robbie also owned enue, and the Force’s owners could they came out to see us play.” MISL clubs, and current NFL chief operating see the eventual league decline ‘Almost like sacrilege’ officer Tod Leiweke spent two years as an coming years before it did. MISL exec. The Force was reborn as the During his MISL days, Komoros- Crunch, an MISL expansion team ki got to know Tim Leiweke, a for- under new ownership, in 1989, but mer president and GM of the 26,160 in their first season — weren’t that franchise never caught on like Kansas City Comets who went on to alone. The Chicago Bulls, who had its predecessor. Attendance the prominent positions with the been outdrawn by the MISL’s Sting next 16 years, the final three of Toronto Maple Leafs, Los Angeles prior to Michael Jordan’s arrival, had which were again played under the Kings, Denver Nuggets and AEG. flashy player introductions that gen- Force nickname, never averaged Leiweke was the first employee erated a lot of attention. The Char- more than 8,265 per game, and hired by the expansion Minnesota The Force advanced to the MISL title series in 1988. (Contributed photo) lotte Hornets, Miami Heat and Or- most of the campaigns were in the Timberwolves, who started play in lando Magic joined the 4,000 to 6,000 range. 1989. Leiweke recruited Komoroski, The Timberwolves brought in a play. Through the MISL, that ulti- Timberwolves as expansion teams The MISL’s legacy, though, has who became the T-Wolves’ VP of dance team, had lights-out introduc- mately became the norm. You had a during a two-year span in the late lived on, and, ironically, a lot of that sales and the franchise’s third em- tions with laser shows and fog ma- number of people passing through ’80s — a process Komoroski points is because of basketball. ployee. chines, and played music as the ac- from other (NBA) teams that were to as a critical changing-of-the- “The moral of the story is good Komoroski also was the Timber- tion was unfolding on the court, just aghast. It was almost like sacri- guard moment for the league’s fan news traveled fast,” Komoroski, the wolves’ game director, and at the which was a bit of a no-no at the time. lege what we were doing (in Min- experience initiatives. Cavs’ CEO, said. “You had a prolif- time he says NBA halftime entertain- “You used to have none of that nesota).” “There was a wave of franchises eration of great evolution and game ment consisted of “rolling the ball out during play,” Komoroski said of the The T-Wolves — who set an NBA coming in that were not encum- presentation, and it was felt in oth- at halfcourt.” music. “There was silence during record with an average attendance of bered by decades of tradition,” Ko- er areas of the business, too.”

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PAGE 10 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS Opinion

From the Publisher / Editor Got an opinion? You’re invited to express it here

It’s commencement season for college and high school graduates. And as the name commencement suggests, it’s not an end, but a beginning. Celebrity speakers, noted business leaders, politicians and media stars have been offering their advice from the podium. Valedictorians are speaking from the heart to their high school classmates, too. Facebook COO Sheryl Sandberg, author of “Lean In: Women, Work, and the Will to Lead,” said this to students at the University of California at Berkeley: “When the challenges come, I hope you remember that anchored deep within you is the ability to learn and grow. You are not born with a fixed amount of resilience. Like a muscle, you can build it up, draw on it when you need it.” Cleveland native Steve Harvey told grad- Elizabeth uates of Alabama State University: “There is McIntyre a difference between success and greatness. Editorial … Great people change other people’s lives. Great people put other people’s needs in front of theirs. Great people go back to their communities and change lives.” Reading these inspirational words, it occurred to me how important it is to listen to diverse viewpoints, to consider All square perspectives that don’t match our own, and to share opinions. That’s something we hope to provide you with every The renovated Public Square, which will open officially in lion already has been raised for an operating fund — so the edition of Crain’s Cleveland Business, through our reporting, our editorials, opinion columns like mine, and letters and op- June, is gorgeous. As big an accomplishment as that is, now sooner there’s permanent organization in place, the better. ed pieces by you, our readers. comes the even more important part: keeping it busy with di- Based on the work they’ve done in their respective fields, We all benefit when more voices are involved in the con- verse events throughout the year, and keeping it clean and safe. DCA, which has brightened up downtown considerably with versation. And it doesn’t have to be grand oration. It doesn’t To do that, the square’s planners will need to come up with its Clean and Safe Ambassadors program, and Metroparks, have to be a commencement speech. I know from the con- a permanent operational structure — likely involving Cleve- which has made Cleveland’s lakefront and riverfront more versations I have every day with Northeast Ohio business land Metroparks, Downtown Cleveland Alliance, or both — lively, are the right choices to make the new Public Square a leaders and our readers that people have so much to offer. and an operating fund that ensures the space’s programming long-term gem. We hope they can step up to the task. Cleveland is getting ready for its closeup this July with And we all stand to benefit when conversations are diverse and upkeep matches the standards of its sharp new look. and robust. First, credit where it’s due for a job (extremely) well done. 50,000 visitors and a national/international television audience for the Republican National Convention. The square And so I want to take this moment to extend an invitation. The Group Plan Commission, the nonprofit that guided Please, share your perspective with us. Dispense advice. the $50 million redevelopment of the square, efficiently man- will make a good first impression. Let’s make sure it’s a lasting one. Comment on the news, on public policy, on corporate cul- aged a project that will become a signature space of Cleve- ture. You need not don a mortar board and robe, simply send land to residents and visitors alike. The design by landscape me an email at [email protected]. architecture firm James Corner Field Operations is beautiful, If what you have to say is short and sweet (or not so sweet), and the key elements of what’s now a true park — a private- we can include it in our letters section. If you’ve got more to ly operated café, an ice skating rink, a picnic hill, a concert Speak up say, write a column of no more than 650 words and send that space and new landscaping around the Soldiers and Sailors In the metaphorical public square, the city of Cleveland along. If you’d prefer to dash off a quick comment on one of Monument — make Public Square a unified front door to last week laid out some sensible steps to accommodate peo- the stories you see on crainscleveland.com, including this downtown rather than four separated quadrants. ple who want to speak and protest during the Republican one, we’ve got a spot for that under every story. In March, the Group Plan Commission took the smart step convention. Samantha Power, U.S. ambassador to the United Nations, of hiring Sanaa Julien, chief marketing officer of Cleveland Among them: a “speakers’ platform” on Public Square near told the Class of 2016 at Yale University: “From the Facebook Metroparks, as a loaned executive to oversee programming the statue of city founder Moses Cleaveland, and a one-mile and Twitter feeds we monitor, to the algorithms that deter- and branding for the square. Early results are encouraging. “parade route” for protestors and groups that apply for offi- mine the results of our web searches based on our previous They include the National Endowment for the Arts awarding cial permits. browsing history and location, our major sources of informa- a $50,000 matching grant to Cuyahoga Arts and Culture for There was some grumbling about the details, in particular tion are increasingly engineered to reflect back to us the arts programming in the square, and the Cleveland Orches- the city’s efforts to limit the times of protest marches. This is world as we already see it. They give us the comfort of our tra scheduling a July 29 concert there. a sticky issue for every city that hosts a political convention opinions without the discomfort of thought. So you have to Julien’s only going to be in the job for a year, though. The and seeks to protect the free speech rights of protestors while find a way to break out of your echo chambers.” Group Plan Commission is wise, then, to consider establish- maintaining the safety of citizens. Given the uniquely nasty That’s great advice. And one way to break out of the echo ing a trust that would work with Metroparks and DCA to run tone of the 2016 presidential campaign to date, and the ac- chamber is to share your unique voice with the community, the square on a permanent basis. The commission’s chairman, tual incidents of violence at the Republican nominee’s ral- to provoke thought. Anthony Coyne, has estimated that the square will need $2 lies, the approach outlined by the city does a good job of We hope you’ll let Crain’s Cleveland Business be your podi- million a year to be maintained properly — more than $4 mil- achieving that balance. um for that.

PUBLISHER AND EDITOR: Elizabeth McIntyre WRITE US: Crain’s welcomes responses from readers. Letters should be as SOUND OFF: Send a Personal ([email protected]) brief as possible and may be edited. Send letters to Crain’s Cleveland View for the opinion page to Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by [email protected]. Please MANAGING EDITOR: Scott Suttell ([email protected]) emailing [email protected]. Please include your complete name and city from include a telephone number for CLEVELAND BUSINESS SECTIONS EDITOR: Timothy Magaw ([email protected]) which you are writing, and a telephone number for fact-checking purposes. verification purposes. 20160530-NEWS--11-NAT-CCI-CL_-- 5/26/2016 4:16 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 11

Letter to the Editor Web Talk Re: Rock Hall’s change in food-service provider Separate funding

Nice work. Toss out the local company (Executive Caterers) for a national conglomerate (Aramark). — Vic makes sense for

Re: Hard Rock Café Cleveland to close Summit’s United Disappointed to read that the Hard Rock is closing. The “strategic PROUD SPONSOR OF RACE FOR THE PLACE decision” must be that they are not Way, Red Cross making enough money on the location. JOIN OUR TEAM elkandelk.com/racefortheplace We go there often before Cavs and Indians games, and it’s always packed, As United Way of Summit County embarks upon a new with a waiting line. It must be empty on strategic direction away from a traditional agency-funding non-game days. — Donald Sinko model and toward a community change model, it has become clear that there are some challenges in maintaining the Unit- QNEW CONCEPT! Digital BILLBOARD Re: Direction of Akron ed Way/American Red Cross joint fundraising agreement as it ON WHEELS (mobile unit with 3 digital screens goes to where you has existed for more than 50 years. want your ad to be seen) Ugh, here we go again with the puffery As a result, United Way entered into negotiations with the QHighway Digital Billboards in Crain’s profile of Kyle Kutuchief, Red Cross toward a mutually agreeable termination of our QBanners, Posters, Large Wall Murals, Akron program director for the John S. joint fundraising contract, which was originally set to expire Vehicle Wraps, Window Graphics and James L. Knight Foundation. QEvent & Tradeshow Signage in April 2019. Why are we celebrating mediocrity? QEmployee Recognition, Why do we put lipstick on the pig that is As part of the proposed agreement, the Red Cross will re- Motivation & Safety Programs Q Akron? Why are we profiling people with ceive a lump-sum payout, which is very close to the annual al- Digital Catalogs “The Name Q superficial ideas that won’t move any locations originally negotiated by the contract. Customer/Supplier Incentive & Award Programs Our common goal is to create a strong community. We feel You Can Trust!” needles? Let’s regain some journalistic QMobile Friendly Websites integrity, Crain’s, and start asking some that the proposed agreement is mutually beneficial to both or- QVideo Production tough questions. — Larry ganizations and positions them to better serve by focusing on QPrinting their respective missions while acknowledging the changing QDirect Mail Marketing Larry, you just said absolutely nothing. realities in which both organizations deliver their services for QPromotional Products “ONE SOURCE. Q What point are you trying to make? the good of the community. Corporate Apparel & Uniforms No one is putting lipstick on anything. UNLIMITED RESOURCES.” QBranded Gift Cards Both organizations remain committed to providing services The article is about a man and an orga- QOnline Company Stores including nization trying to change things for the in Akron and the surrounding communities and will continue Warehousing & Fulﬁllment better. What is your CONSTRUCTIVE to work together, as the opportunity allows, in an effort to im- criticism? … prove the lives of all community members. For example, rep- “Call Joe Thomas Group Complain, complain, complain. You resentatives from each organization will continue to serve on 440-268-0881 offer no alternatives or solutions. United Way’s campaign cabinet in an effort to gain the sup- Independently Owned & Operated. — Tim Fitzwater That’s me!” Certiﬁed as a Minority-Owned Business port of the community and corporations. by State of Ohio and NMSDC. The Red Cross will continue to provide community-based Re: Editorial opposing services to support its mission to prevent and alleviate suffer- www.ProformaJoeThomasGroup.com | www.JoeThomasGroup.com $15-per-hour minimum wage ing in the face of emergencies throughout Summit, Portage and Medina counties. These services include (but are not lim- Proforma JOE THOMAS GROUP is a franchisee of Proforma and is not affiliated with any other franchisee. People earning $150,000 should hold ited to): Citizen CPR classes, which offer community members their opinion when they give their kids the opportunity to learn “hands only” CPR, which can help an allowance and savings greater than save lives; Operation Save-A-Life, which educates communi- what the average worker earns in a ty members on responding during a home fire and installs year. Shame on you, Crain’s. Shame. The smoke alarms in homes throughout the three counties; blood corresponding opinion would be to drives, which provide local medical systems access to life-sav- reduce the tax burden on citizens. Or at ing blood products; and disaster relief to those who have ex- least the salaries in city hall. perienced a home fire or flooding. — 189345 The Red Cross will be expanding its fundraising efforts in the community for the upcoming fiscal year beginning on July Re: LeBron’s foundation 1, 2016. United Way of Summit County is committed to working Outstanding partnership between the within our community to align and drive collaborative re- LeBron James Family Foundation and sources for long lasting change for all. Over the next 18 the Bridgestone Invitational. months, United Way will convene stakeholders to help shape Thanks to LeBron, who continues to the overall impact agenda for its work in education, income lead and be a role model. Congratulations to the Bridgestone and health for years to come. Measures of success in this work Invitational. And congratulations for the will be centered on impact and community change indicators specific focus of LJFF! that will result in a strong return on investment for Summit You are all helping to propel a better County. future for so many. Education first, for Final approval of the dissolution of the partnership will be sure, but also bringing in new lives to voted on at the United Way board meeting on June 15. the wonders of golf — even if some of these are constantly wondering why we Rachel D’Attoma miss so many putts. Executive Director, American Red Cross It’s all about so much more, especially of Summit, Portage, and Medina Counties the social encounters and the infinite joy of the shot that actually lands where Akron one intends. This “shot” and your partnership is a true “hole in one” (on a Jim Mullen par 4). — Richard Obertots President & CEO, United Way of Summit County Akron 20160530-NEWS--12-NAT-CCI-CL_-- 5/26/2016 4:17 PM Page 1

PAGE 12 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS THE DISH: Lee Chilcote Tapstack is a hidden gem for Buckeye Brewing Co.

BY LEE CHILCOTE booming beer scene, including the bar carved from a giant log. There’s When Wright started Buckeye there’s more and more people Bottlehouse Brewing Co.’s new even a window on one side of the Brewing Co. after graduating from switching over to craft beer.” Chilcote is a freelance writer and editor Lakewood location, Brick and Barrel bar that allows customers to catch a the University of Akron, he was pret- Yet while Wright may be skeptical who has written for Vanity Fair, Next City, in the Flats, and Platform Beer Co. in glimpse of the smokestack. ty green. “I’d been doing some of continued growth in the local Belt and other publications. He is Ohio City. During a recent visit, beers on tap home brewing, and my dad wanted beer scene, he believes that tap- cofounder of Literary Cleveland. “You’ve got to have it, even if it’s included the Martian Marzen (a to open a brewery,” he said. “I rooms are critical to nurturing the off site,” said Wright of opening a lager), the Sunstream (a Belgian thought, ‘I’m not going to be using market. “The one thing I’ve been Whenever Tapstack owner Garin taproom. “We’re able to have a deep Witte) and Snow Belted (a rye sai- my communications degree, so why saying for years is that the growth Wright fields phone calls from cus- tap selection here, enough to appeal son). The taproom also features not make beer?’ ” should be in small breweries serving tomers who are having trouble find- to the craft beer drinker. That’s beers from assistant brewer Pedro In those days, there were a lot few- their product across the bar,” he ing the place, he recites the slogan: what’s great about taprooms — you Sarsama, who owns Early Bird Brew- er breweries and significantly less said. “It’s fresh, and you get people “Follow the stack, we’re right out get to try new things you wouldn’t ing Company. competition. Wright taught himself to to go out and get it from the source, back!” get to try otherwise.” Although the off-the-beaten-path make beer using a thick textbook and or to get it in growlers to go.” Buckeye Brewing Co.’s West Side Buckeye Brewing Co. distributes location can be “hit or miss,” Wright eventually developed and perfected Tapstack does not serve food, but taproom, which is located in the Wal- its beer in bottles to Northeast Ohio has a reciprocal relationship with his own recipes. “After two years of Wright may add a small bar menu in ford Industrial Park in Cleveland’s stores and also owns and operates Ray’s MTB, a popular indoor bike complete stress, I started brewing re- the future. He’s also considering West Boulevard neighborhood, gets the Beer Engine in Lakewood. How- park that has been at Walford for over ally good beer,” he said. staying open later on Saturday its name from the brick smokestack ever, most of its beers cannot be a decade. Tapstack, which is open Fast forward two decades and the nights to accommodate Ray’s bikers. that soars above the complex. found in stores. Tapstack offers beer Thursday from 4-10 p.m., Friday from beer scene has evolved quite a bit. On a recent Thursday at 4 p.m., Visible from far away, the tower- fans the ability to enjoy a fresh pint 3-10 p.m., and Saturday from 12-10 The Cleveland market is much more the bar was filling up with beer fans ing smokestack helps guide lost hop in the building where it was hand- p.m., is the unofficial watering hole crowded, with both regional and na- slaking their thirst after work. Wright heads to a seat at the bar. crafted. Additionally, the venue’s in- for bikers who frequent Ray’s. tional breweries vying for shelf said business isn’t always easy, but Tapstack may not be the easiest dustrial-chic décor is unlike any- Wright is hoping to work even space at stores. One of the reasons the word is starting to get out. “To place to find, but it’s well worth the thing else in Cleveland. more closely with Ray’s in the fu- Wright opened Tapstack was to have your core, you’ve got to have visit. The brewery, which has been Tapstack’s interior looks like an ture. The bike park is currently reach customers through another your locals,” he said. “We’re starting around since 1997, makes its superb industrial hunting lodge. It has closed for the summer as it com- avenue. to see more and more of that.” beers on site and currently offers up painted concrete floors and partial- pletes a major expansion that will “I think the market is getting sat- to 16 of them on tap. ly exposed brick walls that boast a add more ramps, and Wright is con- urated. I really do,” Wright said, re- Tapstack opened last year, adding mural of pine trees and blue skies. sidering punching a door in the futing the commonly held notion Email Chilcote at to the growing list of taprooms mak- Its chandeliers are made out of beer brick wall to foster more traffic be- that the craft beer market has room [email protected] or follow ing waves in Northeast Ohio’s bottles and there’s a rough-hewn tween the two spaces. for growth. “I have to be convinced him on Twitter @leechilcote.

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CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 13 April job numbers spring forward

By JAY MILLER

[email protected] @millerjh

Northeast Ohio gained 1,874 private-sector jobs in April, part of an uptick in the regional labor market that has seen employment grow by an estimated 3,431 jobs over the last 12 months, as tracked by the Ahola Crain’s Employment Report. Jack Kleinhenz, the Cleveland Heights economist who created the ACE Report model, said the season- ally adjusted employment numbers suggest some optimism about a re- bound in manufacturing employment, which has suffered in recent months. The 0.12% increase in private-sector employment seen in the ACE analysis is comparable to an increase in the April ADP National Em- ployment Report, which saw a modest increase nationally of 156,000 jobs from March to April. However, manufacturing employment declined nationally, according to the ADP report, while Northeast Ohio manufacturing employment in the seven county Cleveland-Akron area grew by 0.36%. H Longer term, according to the ACE E S analysis, manufacturing employ- A E ment gained 1,580 jobs since April L E 2015, a 0.66% gain. Kleinhenz is op- T Y timistic that trend will continue. H O “Manufacturing has been in a sig- Y L nificant swoon that dates back to S P late 2014,” he said. “However, based MI EM on this month’s estimates, manufac- LE Y turing employment is headed for at S = HAPP least a temporary improvement in the months ahead.” Both the ACE and ADP data are derived from payroll data of client companies served, nationally by ADP LLC and regionally by The Aho- la Corp., a Brecksville payroll and human services firm. The economists at PNC Financial Services Group Inc., report in their second-quarter Northeast Ohio Market Outlook that manufacturing employment in its Northeast Ohio service area, which includes the Canton and Youngstown metropoli- tan areas in addition to Cleveland and Akron, would have been stronger had it not been for layoffs in metals production and the energy Better local service and support industry. 3 — Those layoffs were due to compe- Ohio-based account support and award- tition from steel imports and the sharp decline in energy prices, winning customer service in Michigan. which has reduced investment in oil and gas drilling in the region. Looking back to before the reces- 3 Better access to dentists—Four out sion, however, is a reminder that the region has shed thousands of jobs. of ﬁve Ohio dentists contract with our According to data compiled by the Ohio Department of Jobs and Fami- dental networks. ly Services, the Cleveland and Akron metros have lost 62,400 jobs since Better overall value employment peaked in 2006, before 3 —Our large the recession. networks, processing policies and fee Better. The state agency’s data shows that We do dental. regional employment averaged determinations result in big savings 1,398,600 during 2006 but has dropped, as of April, to 1,336,200. across the board. www.deltadentaloh.com Broken down, the Cleveland area has lost 47,000 workers since 2006, while Akron has lost 18,400 jobs. 20160530-NEWS--14-NAT-CCI-CL_-- 5/26/2016 4:38 PM Page 1

PAGE 14 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS Strongsville is latest spot for Scannell buildings

BY STAN BULLARD pursuing a strategy to geographi- cally cover Northeast Ohio by [email protected] adding business parks in different @CrainRltywriter parts of the region as it lands — or expects to land soon — tenants for Scannell Properties, the Indi- the industrial buildings. anapolis-based real estate develop- “As (tenants) come into the mar- er leading the creation of Corner- ket, you can show them various op- stone Business Park in Twinsburg, tions for buildings and locations,” is starting to put its stamp on Elam said. Strongsville. With Cornerstone, the business Scannell-hired contractors are park in Twinsburg on the former beginning to construct the first of site of the Chrysler stamping plant, two speculative industrial build- Scannell is in the southeast sub- ings at 14720 Foltz Industrial Park- urbs, the strongest in the region. way. Construction follows the com- With Strongsville, it will have prop- pany’s May 24 purchase of a erties in the south market. Elam 17-acre parcel for $1.2 said it is also looking million from Mills for sites to cover the Movers Inc., which is “The days of a area on the northwest located nearby. The warehouse and northeast side of city of Strongsville ap- the region. PROTECTING YOUR proved development with eight Elam declined to of the site last month. discuss the firm’s in- CONFIDENTIAL INFORMATION The first building employees is terest in North will consist of 185,000 Ridgeville, where it has Best Practices for Non-Competition and Non-Solicitation Agreements square feet that gone.” sought a rezoning and should be available by city approvals for a Dec. 1. The second, — Terry Coyne, vice 350,000-square-foot with 192,000 square chairman of Newmark build-to-suit industri- feet, will be built after Grubb Knight Frank al structure for a ten- the first one reaches ant Scannell and city 75% occupancy, according to Tim officials have declined to identify. Elam, managing director of Scan- Terry Coyne, a Newmark Grubb nell. The first building is an esti- Knight Frank vice chairman who mated $10 million project. represents Scannell in Strongsville, With 32-foot ceilings, the struc- said the structure is the first rental ture is designed to serve manufac- industrial building to be built in the turing, distribution and research southwest suburbs since 2007. and development-oriented users, “It’s time,” Coyne said. “We have Elam said. The first build is de- quite a bit of leasing interest in just signed with four separate en- the last week since the property trances and parking for 175 cars, purchase closed.” He noted this with 42 truck doors on its back side. generation of industrial buildings Scannell hopes to have the first differs from prior rental buildings building half leased by the time it’s because they are adapting to e- A FREE WEBINAR • JUNE 16 • NOON - 1 PM constructed. It already is on its way commerce, which means handling toward that goal as XL Screw Corp., large volumes of packages and larg- a Lincolnshire, Ill.-based fastener er workforces. manufacturer and distributor, “The days of a warehouse with In this webinar, we will discuss best practices for: plans to move to 46,400 square feet eight employees is gone. Now you in the building from its current lo- may have hundreds,” Coyne said. • Designing agreements with restrictions that meet your business goals cation in Brooklyn Heights. “These buildings require a lot of • Implementing a program for these agreements that is appropriate to Elam acknowledged Scannell is parking for employees.” your work force • Enforcing the agreements when an employee leaves the company GBRE APARTMENT PROPERTIES PRESENTED BY: 11% CAP!

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CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 15 Focus INVESTING GUIDE FLAT RETURNS - P. 16 z SUPERSTARS - P. 18 z Q&A - P. 19 Are new rules for retirement advice a blessing or a curse?

Depends on your point of view. ISTOCK

By JEREMY NOBILE [email protected] @JeremyNobile vestors to sue somebody. And it adds a whole host of regulatory and advisory costs at an institutional level, making the cost of doing business that much greater.” nvestors should benefit from a heightened standard in retirement advice and Those higher costs could put some strain on smaller shops, possibly pricing service because of the U.S. Department of Labor’s Fiduciary Standard Rule, some clients with less money to invest out of service. The smallest operations Iwhich embodies a slew of regulations released in April that put into motion advising on only a couple accounts might even close. some of the most significant changes to the advice industry in decades. Large broker-dealers will have some of the most challenges to face. But the What spells additional protection for clients, though, may be more blessing or largest, like Morgan Stanley and Bank of America Corp., will have more resources curse for financial advisers depending on their business models. at their disposal to meet those. “This is the hottest topic in the financial services industry because it’s a sea Across the industry, this creates a variety of pros and cons. And while plen- change in how your run-of-the-mill adviser does their job,” said Scott Matasar, ty of uncertainty remains — including how compliance will be achieved and a Cleveland attorney specializing in the retail securities industry. what the fallout in the industry will look like — one thing is very clear: There “I think the vast majority of financial advisers are honest and are already doing will be disruption. the best thing for clients,” he said. “But raising the bar will make it easier for in- SEE RETIREMENT RULES, PAGE 19 20160530-NEWS--16-NAT-CCI-CL_-- 5/26/2016 1:58 PM Page 1

PAGE 16 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS INVESTING GUIDE Stocks lose luster amid flat return cycle

By JEREMY NOBILE Experts generally chalk up the of research for CBIZ Financial Solu- contributes to the flatness in the the inkling to pull out of equities state of the market today to a slew of tions. “That is creating uncertainty market.” entirely, advisers are cautioning [email protected] factors from prolonged low interest on the fundamental level for the The markets are merely “treading against that. @JeremyNobile rates and a strong dollar to general markets, and it’s making everyone water,” said Bruce McCain, chief in- “Despair isn’t a great strategy ei- international market volatility and very jittery.” vestment strategist for Key Private ther when you know you could be For the stock market, the future slow corporate revenue growth put- Much of investor jitteriness is at- Bank. left standing at the platform when ain’t what it used to be. ting pressure on margins. Some ma- tributable to a global divergence in “It’s a tough game, and one not the train rolls out,” McCain said. Stocks have lost much of their lus- jor investment banks, like Goldman interest rates, she said. While the Fed very reassuring for investors who Zach Abrams, a portfolio manager ter in the thick of a flat return cycle. Sachs, have downgraded stocks for hasn’t ruled out a rate hike in the haven’t decided whether to give up at Capitol Advisors Ltd., takes a simi- And while most economic forecast- the next year as a result. summer, other central banks outside and go to the sidelines or bid more lar perspective. He often finds himself ers don’t see another recession on Local investors are expecting the U.S. are cutting rates. That would aggressively in hopes they might reminding clients today they “can’t the near horizon, the outlook isn’t much of the same lukewarm per- make the dollar stronger and con- move up in the future,” he said. “It’s squeeze water from a rock.” terribly bright, either. formances. tribute to market uncertainty. a waiting game.” In other words, you won’t make While stocks are hard to get excit- “Right now, we’ve had four con- “The central banks are making Hope certainly isn’t a sound in- anything if you don’t play the game. ed about right now, it could definite- secutive quarters of negative earn- investors nervous,” Rathbun said, vesting strategy, though. And while But when returns are dismal, con- ly be worse. ings,” said Anna Rathbun, director “and that nervousness ultimately some frazzled investors might get vincing clients of that can be more difficult. Abrams is forecasting low, annu- alized returns around 5% over the next decade in the U.S. stock market. A more average return would be closer to 9%. So while he’s not forecasting negative returns, the outlook for performance is still below average. Nonetheless, there’s still money to be made. WE HELP CROOKED STOCKBROKERS Advisers say now is the time to re- mind investors to be patient and stick to their long-term goals — and MAKE SOMETHING OF THEMSELVES. defining those are usually more difficult than allocating investments. Yet, a sideways growth environment underscores the importance of being spread out among investments. “You want to be diversified among asset classes that move in different directions in any environment,” Rathbun said. “Sticking to your plan is really the discipline of investing so you can weather the storm of whatever volatility is in front of us.” Credit has become much more appealing — valuations are better there compared to stocks — particularly as cash and bonds present rather lackluster returns as well. Abrams forecasts emerging markets and other/international markets returning around 10% and 8%, respectively. “If you are diversified across your asset base,” he said, “you can increase returns in your portfolio without taking a large amount of risk, particularly in this environment.” Similarly, he cautions against betting too big on one class or investment. “You really need to look at where you’re most vulnerable,” he said. “If you shoot for the home run without taking into consideration the down side, that could get you into big trouble.” ACCOUNTABLE. The general uncertainty with the global markets will contribute to volatility moving forward, as will the Most stockbrokers are honest. Some are not. At Meyer Wilson, we’ve been successfully representing coming U.S. presidential election. investors against dishonest brokers for more than 15 years. We’ve done it locally. We’ve done it So don’t expect market forecasts to change drastically anytime soon. nationally. And we’ve built our reputation on our success. So if you know of a stockbroker who is “That rising dollar, even less crooked, negligent, or just plain not smart enough to do the right thing, contact us. We can help. growth overseas and the presidential election … will continue to hammer at investors’ psyches,” Mc- Cain said. “That will give us thrills and chills over the next few months as people focus on choices that a lot of polls suggest a lot of voters just don’t like.” Get what’s coming to you. “It’s not going to be a fun time for voters as they try to work their way through that election and the impli- cations of what that might mean for Meyer Wilson Co., LPA Cleveland Columbus Los Angeles 216.600.1355 investorclaims.com the economy,” he added. “The uncertainty will tend to keep prices more range bound, at least more restrictive than they would be otherwise.” 20160530-NEWS--17-NAT-CCI-CL_-- 5/26/2016 1:58 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 17

Gap tightens among top public companies

By SCOTT SUTTELL $17.003 billion on April 30, 2015. Top 10 Market Valuations Rising to No. 5 on this year’s list, [email protected] The top 10 publicly traded company in the 15-county coverage area, ranked by market value between April 30, from No. 7 a year ago, was Orrville- @ssuttell 2015 and April 30, 2016. For a full list of market valuations in the region, see the List on pages 25 and 27. based food products maker The J.M. Smucker Co. Its market cap rose Every year since 2013, the top two Company name Ticker Market value Market value % change 28.8% — the highest increase in the names on Crain’s list of the largest symbol (4/30/16) (4/30/15) top 10 of the list — to $15.197 billion public companies in Northeast Ohio from $11.796 billion a year ago. The have been the same, and in the same Eaton ETN 28,977,660,000 32,103,785,000 -9.738 company in 2015 bought San Fran- order: Eaton Corp. at No. 1, and Sherwin-Williams Co. SHW 26,574,737,000 25,905,705,000 2.583 cisco-based Big Heart Pet Brands for Sherwin-Williams Co. at No. 2. $5.8 billion, including $2.6 billion in But the gap is shrinking. Fast. Progressive Corp. PGR 19,005,799,000 15,657,413,000 21.385 debt, in a deal that marked Smuck- Eaton, a diversified manufacturer Parker Hannifin Corp. PH 15,674,649,000 17,003,429,000 -7.815 er’s entry into the pet food business. that makes electrical, hydraulic, Akron-based FirstEnergy Corp. fell The J.M. Smucker Co. SJM 15,197,601,000 11,796,367,000 28.833 aerospace, truck and automotive to No. 6 on the list from No. 5 in 2015 products, is in the top spot on the FirstEnergy Corp. FE 13,841,364,000 15,121,809,000 -8.468 as its market capitalization dropped largest public companies list with a TransDigm Group Inc. TDG 12,210,412,000 11,161,642,000 9.396 8.5%, to $13.841 billion. KeyCorp market capitalization of $28.977 bil- dropped to No. 8 from No. 6 as its lion as of April 30. That figure, KeyCorp KEY 10,351,742,000 12,295,793,000 -15.811 market cap was off 15.8%, to $10.351 though, is down 9.7% from Eaton’s Goodyear Tire & Rubber Co. GT 7,704,393,000 7,655,799,000 0.635 billion. market cap of $32.103 billion on Just outside the top 10, at No. 12, RPM International Inc. RPM 6,712,708,000 6,334,039,000 5.978 April 30, 2015. (Market capitalization was one of the biggest market cap is defined as the total dollar market gainers in Northeast Ohio: Steris plc. value of all of a company’s shares Williams’ was $19.914 billion. In The company, which makes sterile outstanding.) April 2013, the year Sherwin- Could 2017 be the year Eaton and processing and infection prevention Meanwhile, Cleveland-based Sher- Williams rose to the No. 2 spot, the Sherwin-Williams swap places for the top systems, saw its market cap rise win-Williams, the maker of paint, gap was about $10 billion (Eaton: 53.2% to nearly $6.1 billion. Steris coatings and related products, saw its $28.91 billion in market cap; Sher- spot? It’s possible, since the company is last year completed a $2 billion deal market cap rise 2.6% to $26.574 bil- win-Williams: $18.89 billion.) for a British company, Synergy lion as of April 30 this year from Could 2017 be the year the com- working on an $11.3 billion merger with Health, that originally ran afoul of $25.905 billion the previous year. panies cross paths and Sherwin- U.S. regulators. The difference between the mar- Williams takes the top spot? Valspar Corp. of Minneapolis. There are two companies on the ket capitalizations of the two compa- It’s possible, since the company is full list that posted market cap gains nies remains substantial, at about working on an $11.3 billion merger, about a month before the 2017 mar- ance giant Progressive Corp., which of more than 100%, though, as ex- $2.4 billion. (That is, after all, a lot of announced in March, with Valspar ket capitalization data would be fi- rose to No. 3 on the list from No. 4 in pected, they’re smaller companies. money. Think of it as nearly two- Corp. of Minneapolis. The com- nalized. 2015 as its market capitalization The biggest gainer of all was and-a-half of LeBron James’ lifetime bined company, to be based in The rest of the members of the top jumped by 21.4%, to $19.005 billion Cleveland biopharmaceutical com- Nike contracts, or one-quarter of Cleveland, would have annual rev- 10 of the public companies list are on April 30 from $15.657 billion a pany Athersys Inc., which posted a what Donald Trump claims he’s enues of about $15.6 billion, making the same as 2015, though the order year ago. 107.4% increase in market cap to worth.) it the world’s biggest coatings man- is slightly different, as a couple com- Progressive swapped places with $193.4 million from $93.2 million a But a year ago, in April 2015, the ufacturer. panies saw market gap gains of Parker Hannifin Corp., the maker of year ago. gap was $6.2 billion. In 2014, it was Sherwin-Williams and Valspar more than 20% and three longtime fluid power systems and electro- Meanwhile, steel service center even larger, at nearly $14.6 billion, have said the transaction is expect- stalwarts posted declines. mechanical controls, as it dropped Olympic Steel Inc. saw its market when Eaton’s market cap was ed to close by the end of the first One of the big gainers in the top to No. 4 on the list as its market cap cap rise 105.7% to $247.4 million $34.511 billion and Sherwin- quarter of calendar year 2017 — 10 was Mayfield Village-based insur- fell 7.8% to $15.674 billion from from $120.3 million last year.

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PAGE 18 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS INVESTING GUIDE Superstar ranking sees major turnover By SCOTT SUTTELL Crain’s Superstar 10 [email protected] Crain’s determines its Superstar 10 list by obtaining a composite score for each publicly traded company in the 15-county coverage area. The composite @ssuttell score is the total of the three rankings: 12-month total return to shareholders, 2015 percentage growth in profits and 2015 return on equity.

It makes sense that the spotlight in Rank Company name Composite 1-yr total return Total 1-yr net income Net income Return Return on the Crain’s Superstar 10, our annual score (4/29/16) return rank % change % change rank on equity equity rank look at public company performance in Northeast Ohio, would be 1 Energy Focus Inc. 15 52.64 3 250.21 3 19.37 9 on Energy Focus Inc. The Solon-based maker of tubular 2 NACCO Industries Inc. 33 24.10 8 157.67 4 10.93 21 LED lighting for military and other 2 RPM International Inc. 33 8.87 17 49.73 12 26.64 4 markets was able to shine brightest 4 Cedar Fair LP 41 8.86 18 7.68 22 196.85 1 among the 56 public companies based in the region, ranking No. 1 on 5 Sherwin-Williams Co. 43 4.44 24 21.71 17 121.42 2 the Superstar 10 list. And it wasn’t 6 Progressive Corp. 44 25.68 6 -1.05 25 17.39 13 particularly close. The Superstar 10 ranking data 7 PolyOne Corp. 52 -6.59 36 82.58 9 20.53 7 cover a one-year period ending April 8 National Interstate Corp. 54 12.04 15 89.07 8 5.81 31 30, 2016. A composite score for each 9 CBIZ Inc. 55 12.61 13 14.61 18 7.97 24 public company in the 15 counties Crain’s tracks is obtained by adding 9 Myers Industries Inc. 55 -13.56 43 304.61 2 18.18 10 its rank on three different lists — 12- month total return to shareholders; the percentage change in profits in is in the midst of a $11.3 billion the trailing 12-month period; and re- Only one company — Cleveland-based Sherwin-Williams Co. — merger with Valspar Corp. of Min- turn on equity during the latest 12 neapolis that, if completed, would months reported by the company. is a holdover from last year’s Superstar 10. And the 2015 make the combined company the The lower the composite score, the largest paintmaker in the world. better a company’s overall perfor- Superstar 10, it should be noted, had 13 companies due to Valspar would add a significant in- mance is considered to be, and the some tie scores. ternational component to Sherwin- higher it ranks on the Superstar 10 Williams’ strong U.S. base. list. One unusual element in this Energy Focus, for instance, ranked field Heights-based holding com- gains for investors. nomic development manager, said year’s Superstar 10 — and an illus- third in 12-month total return to pany with subsidiaries in the min- Crain’s reported in April that En- last month that the city provided a tration, perhaps, of the still-chal- shareholders (up 52.64%), third in 12- ing, small appliances and specialty ergy Focus is expanding its 30,000- grant that will provide at least lenging global business environ- month net income change (up retail businesses, and Medina- square-foot headquarters, research $260,000 to the company over the ment — is the presence of a few 250.21%) and ninth in return on equi- based specialty coatings and lab, factory and distribution center next six years if it doubles its payroll negative numbers. Two members ty (up 19.37%). Adding 3, 3 and 9 gave sealants maker RPM International at 32000 Aurora Road with an addi- to $9 million in Solon from the cur- of the Superstar 10 posted negative Energy Focus a composite score of 15. Inc. were tied for second on the Su- tional 70,000 square feet of space rent $4.5 million. one-year returns to shareholders: No other company on the Super- perstar 10 list, with composite that it primarily plans to use for ex- Energy Focus has about 90 employ- Avon Lake-based polymer materi- star 10 list compiled a score that was scores of 33. panding its inventory to keep pace ees at the Solon headquarters, but an als producer PolyOne (-6.59%) and in the teens, or even the 20s. Energy Focus’ win in the Super- with sales growth. executive and marketing office in New another polymer business, Akron- NACCO Industries Inc., a May- star 10 represents more than just Peggy Weil Dorfman, Solon eco- York and offices in other locations based Myers Industries Inc. (- that bring its total staff to 130. 13.56%). Another company, insur- The Superstar 10 is marked by ance giant Progressive Corp. of heavy turnover from a year ago. Mayfield Village, made the Super- Only one company — Cleveland- star 10 despite a 1.05% decline in based Sherwin-Williams Co. — is a net income. holdover from last year’s Superstar Of all the companies in the Super- 10. (And the 2015 Superstar 10, it star 10, only one of them finished should be noted, had 13 companies first overall in any of the three rank- independence due to some tie scores.) ing categories. That honor goes to In both years, Sherwin-Williams Sandusky-based Cedar Fair LP, the was No. 5 on the list, though its com- operator of Cedar Point and other posite score was better in 2015 (33) amusement parks, which was first in integrity than in 2016 (43). Sherwin-Williams return on equity, at 196.85%. Complimentary In-flight WiFi

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CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 19

visers look to cushion themselves That, in turn, will create more away clients at the lower end of against these potential lawsuits. competition. their asset spectrums, which in the RETIREMENT RULES “It forces us to do better at our industry generally hovers around CONTINUED FROM PAGE 15 Meanwhile, litigation could surge. Underlying opportunity jobs, which I don’t have any issue $250,000. This could funnel people With the new fiduciary standard, Firms like Cleveland’s Beacon Fi- with,” Franz said. “The fact is, you to automated “robo-adviser” in- The fiduciary standard rule ap- clients have more teeth to sue their nancial Partners established an RIA don’t have to be really good to be vestment services like those widely plies to advisers working with in- adviser if they feel they didn’t receive to create more independ- good at our business, to promoted by Betterment or vestors on retirement accounts. It beneficial or otherwise proper ad- ence from a broker-dealer get into it. This will force Wealthfront. specifically targets broker-dealers vice. world, said co-chief invest- 1,023 people to become better Or, they could land at firms al- who collect commissions on prod- If a client can prove violation by ment officer Pete Franz. or get out.” ready charging competitive flat ucts they sell, amounting to billions an adviser held to this higher stan- Younger investors, he said, Number of pages Indeed, smaller bro- rates. of dollars in the advice business. dard, a lawsuit will almost certainly already expect more trans- in the new federal ker-dealer firms could That’s where firms like Spero- Those advisers’ behaviors in terms follow. parency overall in their ad- fiduciary standard find the time and cost Smith and Beacon Financial see of advice they give and where they Not only does that create the po- visement. And those rules that go into necessary to meet the potential to grow their own busi- place a client’s money once were tential for more litigation, it could clients will have tomor- effect next April. new standard too high to nesses. held to a “suitability” standard. The spur a rise in rates for professional li- row’s retirement accounts. make smaller accounts “Clients will focus on the actual DOL ruling changes that to the more ability insurance — or what’s more Promoting transparency was once worth their while. That could result fee structure or quality of advice,” scrupulous “fiduciary” standard. commonly known as error and a differentiator for some firms, in consolidation as some advisers Malbasa said. “It’s a tremendous op- Among various things, that omissions for advisers which pro- though, and that won’t be as mean- exit the industry. portunity for anybody in the retire- changes the way those advisers can tects against a possible claim of neg- ingful anymore when everyone is Simultaneously, other firms ment plan business who is ready to operate by requiring them to dis- ligence of fiduciary duties — as ad- held to the same standard. might not close, but may still push serve as a fiduciary.” close if they’re compensated on commissions or referrals and forc- ing them to prove that anything they do with an investor’s money is done in their best interest (not, in theory, because an adviser wanted to make money off a product or collect the commission). Ethically, this is the way every adviser should already act. The new ruling just mandates it. Your financial “That’s great news,” said Jeff Mal- basa, president and chief investment officer at Spero-Smith Investment Advisers, an independent Cleveland world is firm offering only fee-based services. “It’s one more step for clients’ benefit where they are getting more trans- changing. parency and better service. And that’s a good thing.” Registered investment advisers are already held to that higher fiduciary standard, which advisers em- ploying strictly fee-only based models naturally meet because they’re disclosing how they’re being paid and not selling commission-based products. The largest broker-dealers, like Merrill Lynch and Morgan Stanley, will have the most hurdles to deal with. While representatives for those firms would not comment on how they’re working toward compliance with the new rule, one local repre- sentative with a national wirehouse Personal Banking lamented the economics of all that Good thing you have choices. entails. Business Banking Much of that is still being figured out, though, by those who need to Northwest has made the right choice very clear. adapt. The federal government is ex- Investment Management* pecting firms to achieve compliance with the various components of its We offer a wealth of financial products and services to Employee Benefits* complex 1,023-page rule beginning next April. fit your busy lifestyle, with a tradition of industry-leading Insurance* Among various effects, the cost alone to educate customers on the rule and what it means will be stag- customer satisfaction. We’d love to be your bank. Retirement Plans* gering. That’s in addition to commu- nication now required if an adviser wants to move around a retirement client’s money. So while the changes benefit investors, they also impose a slew of challenges for companies with 14 offices to scores of customers. It could impact the quality of serv- serve you in ice. Not only could advisers with 1-877-672-5678 | northwest.com Lorain County small books of business possibly be at risk for being released, Matasar said, some large firms are considering call centers for investor calls for *Northwest Bank, a subsidiary of Northwest Bancshares, Inc., has wholly owned subsidiaries that use the Northwest Bank owned trade, logo and/or service marks “Northwest Financial Services, Inc.,” “Northwest Investment Services,” “Northwest Advisors, Inc.,” Northwest Retirement Services,” and “Northwest Insurance Services” to provide investment and wealth clientele with less to invest. Some management, actuarial services, fiduciary services, insurance services and employee benefit plans. Trust and fiduciary services are offered through Northwest Bank. Non-fiduciary actuarial and recordkeeping services are offered through NorthwestRetirement Services. Brokerage and securities services are offered through Northwest Investment Services. Advisory services, like Merrill Edge, already services are offered through Northwest AdvisorsInc. Securities are offered through and advisorsare registered with Cetera Investment Services LLC, member FINRA/SIPC. Cetera take that approach — of course, that Investment LLC is independent of Northwest Bank and all of its subsidiaries. Fixed annuities, life insurance and long term care products and advice may be provided by Northwest Bank, a licensed insurance provider in the following jurisdictions: PA, MD, NY, and OH. Personal, Property and Casualty, Life, Disability and Long Term Care, and Business Property, Liability, might still be the best option for Workers’ Compensation, Executive Management, Risk Management and Specialty Insurance Programs and Employee Benefits such as Group Health, Dental, Life and Disability are some investors and isn’t an inher- available through Northwest Insurance Services, a licensed broker and consultant in the following jurisdictions: PA, CT, DC, LA, MD, NJ, NY, OH, SC, VA and WV. Northwest Bank and Northwest Insurance Services are typically compensated by insurers based on industry standard commission schedules. Insurance products are obligations of the insurers who issue the ently bad thing. policies. A decision to purchase insurance will not affect the cost or availability of other products or services from Northwest Bank or its subsidiaries. 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PAGE 20 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS INVESTING GUIDE Q & A: Ken Mayland President, ClearView Economics Ken Mayland, president of ClearView Economics in Pepper Pike, is re- corrected. Inflation went down some talk about flatter taxes, a garded as one of country’s best and most accurate economic fore- and interest rates came down reduction in corporate tax — a substantially. But the stock mar- flatter tax by that way means de- casters. In his career spanning nearly four decades, he has held top ket hits its bottom of August ductions — and in addition to that, economist roles for major financial institutions like KeyCorp, advised 1982. Reagan gets charged with net tax reductions. My inclination governors through Ohio’s economic advisory committee and held that even though the economy is to believe that would be posi- had a wonderful run after that. So tive for the stock market. various leadership roles with the National Association for Business these are legacy effects, either Economics. So, Crain’s decided to sit down with Mayland to get his positive or negative. It comes That assumes the next presi- perspective on how companies and investors might react to possibly down to adjustment. dent will get some cooperation with Congress, though, right? the most important — and contentious — market catalyst of the Do you see any market effects I think that is an important point. I next several years: the 2016 presidential election. — Jeremy Nobile that would be specific to a suspect, with the next president, Trump or Clinton presidency, things will be increasingly done The stock market has been quite cation, location, location.’ We Last time I checked, it’s probably considering they appear to be through executive orders because volatile. What are you seeing at should say that in the stock mar- under Democratic presidents that the presumptive nominees? of the gridlock we’ve seen in Con- this point in the cycle? ket because if you look at the the stock market has done better. Based on some of their stated gress. The market has had to deal with a overall market, the S&P is not too But again, I would be more inclined policies: lot of bad earnings and drags on far away from all-time highs, de- to look at what sort of circum- The Democrats want to give away And one candidate might pre- earnings in the S&P 500 due to pending on which day you look. So stances might prevail under the a lot of free stuff, whether it’s serve more of those executive low commodity prices. The energy everything is relative, and some of policies of someone like Donald subsidized college education or orders than the next. sector of the S&P is down very it depends on where you’re at. If Trump or Hillary Clinton than look something closer to universal So what’s the effect of that? A substantially, and commodity some stuff is doing bad, obviously at that statistical data. health care. Then there’s the $15- Democratic administration would prices are way down because of some stuff is doing good. per-hour minimum wage. All that sustain the existing presidency’s very sluggish world growth — so What’s behind this phenomenon? stuff has to be paid for. And some executive orders on everything not just the price of oil, but the How does a presidential elec- The economy has to adapt. of the things talked about on the from greener policies, the EPA, price of copper and primary met- tion usually affect the stock Take Ronald Reagan’s presidency Democratic side include a fee on regulation, labor, financial markets als. This has weighed heavily on market? in 1981. He had to fix a lot of prob- stock market trading — so part of etc. If it’s a Republican president, a the market. I think we’ve been Historically, the years of and pre- lems under Democratic president the bill could include tax to federal lot of those executive orders down because of sliding commodi- ceding the election are, statisti- Jimmy Carter, which included 15% government. In general, there could be reversed. New manage- ty prices with S&P earnings having cally, outperformers. Then the inflation in 1980 and a 21.5% could be higher tax rates. I think ment in the EPA could make that been down for something like six next two years after the election prime rate. The policies that need- those measures, like higher tax more business friendly. The public quarters sequentially. A good part tend to be underperformers. But I ed to be pursued were painful for rates to pay for stuff, if they were has to decide what kind of climate of the rest of the market is doing wouldn’t put a great deal of the economy and painful for the enacted, would probably have an they want to achieve. But a busi- OK, though, if not good. People weight on those statistics. I don’t stock market. In the end, the adverse effect on stock prices. ness friendly market would be say in the real estate business ‘lo- think it’s an investable theory. economy, those problems, were On the Republican side, there’s very positive to the stock market.

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CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 21 Business of Life

Eco-designer Susie Frazier refers to the digital pattern file for proper positioning of pieces in the installation of “Swarm,” her design of walnut-stained maple on stainless standoff posts, in the Rockefeller Suite at the Hilton Cleveland Downtown Hotel. (Peggy Turbett photos) Frazier said. al world through sustainable mate- The change in focus came over the rials procured from either the envi- last year with the hire of CEO/manag- ronment or Cleveland’s industrial ing partner Julia Toke, who proactive- landscape. ly reached out to corporate clients Local aftermarket scrap vendors Her earth-minded art and hired additional managerial help. have provided Frazier a wealth of Frazier was able to turn budget details valuable steel she’s fashioned into over to her team and concentrate in- picture frames and serving trays. She stead on her strengths. also harvests driftwood three times “My wheelhouse is marketing and a year from Lake Erie’s shores, giving opens up new worlds sales,” she said. “I love being out there the cast-off material a second life as to define what our brand stands for. a candle holder or lamp. By DOUGLAS J. GUTH There’s a protocol to follow in how we Frazier began her artistic/busi- make choices, and I’m grateful for ness career in 1997 by salvaging slate Susie Frazier has spent almost 20 that. It’s brought my anxiety down roofing tiles from old Cleveland years narrowing her self-styled “earth- and helps create a better product.” buildings and crafting them into minded” aesthetic into a cohesive Signing with brand management mosaic furniture and home decor. brand. Pursuing that clarity has al- and licensing firm Prominent Brand She’s kept that local connection go- lowed the Cleveland designer to ex- + Talent is a greater measure of the ing through relationships with a ro- pand her arts-based business into the company’s potential, Frazier said. tation of 22 area fabrication part- commercial space and beyond. Prominent’s role is to position Fra- ners, including metalworker Alex Frazier repurposes materials zier’s patterns, designs and personal- Loos of Hans Noble Design, whose found in and out of nature to create ity with major retailers and manufac- custom steel manufacturing shop art, home living products, furnish- turers in the creation of new helped Frazier piece together speak- ings and gifts. In her hands, discard- products. The branding firm current- er gifts for the Clinic summit. ed wood, steel and stone can be ly represents Madonna’s Hard Candy “Susie thinks differently than transformed into a magnetic puzzle premium fitness clubs. Frazier would most artists I know,” Loos said. for a Cleveland Clinic event or a fine- like nothing more than to have her “People are blown away by the na- ly crafted wood block laser-engraved personal brand reach a similar alti- ture of what she’s producing. It’s the with inspirational words. tude as that of the pop star. combination of putting herself out Housed in the 78th Street Studios “We could have a TV show where there and her expression through art in Cleveland’s Gordon Square Arts I feature cool new design ideas,” that really makes her unique and District, Frazier’s company sells Frazier and Anna Birchler, general manager of Susie Frazier Inc., work Frazier said. “We want to be an sought after.” high-end art and custom products on the installation at the Hilton. emerging brand.” Frazier said she’s “past the stage of geared toward corporate clients as quarters of the business. The West- rate clients include BakerHostetler Frazier’s entrepreneurial spirit is sitting in studio and noodling well as home accessories and appar- lake resident recently designed 100 and Sherwin-Williams, representing rooted in wellness and personal em- around. Artists create stuff that pleas- el for walk-in customers. steel-and-wood tabletop puzzles for an increasingly lucrative enterprise powerment, gleaned from a love of es them, while a designer is creating While direct retail was once Fra- health care professionals speaking at that converges art with function. nature while growing up in Arizona with a target market in mind. Now we zier’s mainstay, commercial produc- a Cleveland Clinic medical innova- “The work is tied to our aesthetic and Colorado. The resulting “earth- have a brand, a collection of pieces tion now comprises nearly three- tion summit. Frazier’s other corpo- while meeting the client’s goals,” mindedness” connects to the natur- that belong together.” 20160530-NEWS--22-NAT-CCI-CL_-- 5/26/2016 3:58 PM Page 1

PAGE 22 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS BUSINESS OF LIFE Source Lunch

It’s safe to say Jeremy Paris is busy lately.

As executive director of the Group Plan Commis- sion, the board orchestrating the $50 million revitalization of Public Square, Paris has been overseeing a 16-month build that’s been in the planning stages since early 2010. A fast-talking, civic-minded go-getter, Paris — it seems to new confidantes — is the right man for the job. A former on-the-hill adviser for U.S. Sen. Patrick Leahy, Paris is actually a native Northeast Ohioan, born and raised in Shaker Heights. Spending decades in D.C., returning to the city in 2012 “without a job,” Paris quickly stepped up to guide the GPC toward city beautification, to be displayed to the country and world this July. But don’t call him anxious. “I see it more as challeng- Jeremy Paris ing,” Paris said. This said, you’re better off talking to him in August. NONPROFIT — Mark Oprea

The Republicans are coming to make this investment, it’s could You’ve had a lot of criticism town in July. Is this sort of a we afford not to? about the public transit litmus test for Public Square? running through Public Square. FIVE THINGS: It’s a period of time when we’re Growing up in Shaker Heights, Can you settle that for us? concerned with making sure did you ever one day think that One of the things to remember is FAVORITE EAST SIDE we’re ready: working with the you were going to be revitaliz- that we studied this before we DELI? LUNCH SPOT Host Committee, with the ing the city you were raised in? even did the final design process. Corky and Lenny’s Sans Souci Republican National Committee. It’s funny. I always felt very We studied this certainly well 24 Public Square It’s a funny thing to have in the connected to downtown. I think before we put a shovel in the Cleveland middle of this opening period: this when I was 12 — I lived right off ground. We had one of the best FREE NIGHT: WHAT DO 216-902-4095 huge out-of-town party. But of the RTA line — and my parents traffic and transportation firms in YOU DO? sanssoucicleveland.com during the convention, I think it’s allowed me to go to Indians the world look at 30 intersections just a key part of the city. games on my own with a couple in downtown for different A restaurant in Tremont. In the of a bucks for a hot dog. It scenarios for shutting down summer? Somewhere on the The meal Looking at city beautification sounds like it was the 1950s, but roads, how it would impact traffic water. One had the Clevelandian: projects in Boston, Chicago or I swear to God it was the 1980s. and transit. Sixty thousand riders braised pork cheeks, local New York, and what they’ve There was a wave of excitement come through daily at the square. BEST ADVICE? Swiss, Tony Packo’s done to those portions of the around Cleveland in the early Shifts to those could have a pickles, Stadium mustard, city, do you see Public Square 1980s and 1990s: the Rock Hall significant impact on many “It’s always important to meet on a ciabatta roll with fitting alongside those? was built, new stadiums came in. residents. We’ve been flexible, people where they are,” Paris fries and ice water. The Yeah. Cleveland, for the first time Of course, we lost the Browns, we’ve worked closely with RTA, said. “Always understand the other: Mediterranean in its history, downtown is now an but they came back. worked closely with stakeholders, situation from the other side.” turkey burger topped actual neighborhood, which was with businesses around the with arugula, pesto and mozzarella, plus fries and not true even when it was a Another city park for example, square. We need to make this BOOKS? bigger city. These are big office let’s say in New York or work for everybody. an Arnold Palmer. buildings. Not residences. You Boston, that really impressed Science fiction, “Ulysses.” John have this idea of this you or influenced this project? You’re compensating. Scalzi’s “Old Man’s War.” Roman The vibe transformational green space Bryant Park in New York. It’s Yeah. Finding the balanced use. history, U.S. history. Books on Sans Souci is classic right in the heart of a city that’s similar in size to Public Square. It And I think people just have in Churchill, FDR. “Triumph of the Cleveland. Right inside actually a part of a neighborhood was at one point a real troubled mind the old sense of what Public City” by Edward Glaeser. “The the Renaissance Hotel, — not just a place of work. spot in New York. Drugs. Crime. Square has been. the restaurant overlook- Underutilized. And they took it Life and Death of Great ing the square is a fine It’s a very new thing? over, they did some It’s going to be this sort of American Cities” by Jane Jacobs. local twist on Mediter- infrastructure development, and poster child for Cleveland It’s part of the millennial ranean cuisine. It’s sharp, they also started programming it come July during the RNC. Do generation wanting to live ADVICE TO THE GPC IN vintage, dotted with very heavily. And now Bryant you see it as this? downtown. … All of a sudden, 100 YEARS? Victorian-era chandeliers, Park’s like the heart of the design Public Square is also part of Before, what I would see when I veneered bar-tops, foun- district in New York. And the “I hope you got your flying cars, people’s daily lives, which that — was on the square is the traffic. … tains and statues. Want yoga that they do there, the even a generation ago — wasn’t a Now, you see the buildings. … You first of all — or drones,” he said. to have a whiskey on the things they do there — it’s thing. There’s that livability piece. see the beautiful architecture, “But I think the key is to be true rocks around men in amazing. You need a place to have a you see Old Stone Church, the to the city’s needs at the time. suits? This is the place. coffee. Walk your dog. Experience Terminal Tower, the May Company Build from success but not be cultural life. Just like any Building, the Key Tower, the beholden to it.” infrastructure, it’s really not a Society Buildings. … It seems like The bill question of could we afford to a different kind of space. $34.65, plus tip 20160530-NEWS--23-NAT-CCI-CL_-- 5/27/2016 4:38 PM Page 1

CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 23 CROWDFUNDING CONTINUED FROM PAGE 1

regulators to draft rules that would legalize equity crowdfunding and IMPRISE FINANCIAL other techniques designed to help MANAGE RISK. MAXIMIZE WEALTH. private companies raise capital from large numbers of investors. However, because of those rules — and the cost of complying with WEALTH ADVANTAGE them — the number of companies that decide to raise money from the Imprise Financial develops customized captive insurance programs masses will be significantly lower than many people originally antici- VCKNQTGF VQ [QWT DWUKPGUUoU URGEKƂE TKUM RTQƂNG 1WT URGEKCNK\GF pated, according to Cohen and a few programs provide coverage for losses that traditional insurance others who spoke with Crain’s. companies cannot cost-effectively insure, including: “I think a lot of people thought there was a big backlog of compa- Crime & Employee Dishonesty Loss of Key Talent nies waiting for it to happen,” Cohen Cyber Risk Regulatory Risk said. Cleveland Whiskey hopes to raise $1 million. (Contributed photo) Insurance Deductible Expense Supply Chain Interruption Ending prohibition Loss of Key Customer Litigation Expense Granted, a few people said crowd- lower if he raises less. But he funding could become more popu- $71,200 would’ve provided a higher estimate Franchise Dispute Expense Reputation Risk lar over time, as companies and in- Amount of money Cleveland if Cleveland Whiskey hadn’t already vestors (not to mention their lawyers Whiskey had raised so far from 137 created detailed financial state- CALL TODAY 877-220-0180 and accountants) become more people via Wefunder.com. ments. Fortunately, the company comfortable with the concept. had previously raised capital and WWW.IMPRISEFINANCIAL.COM For instance, Cleveland Whiskey didn’t have to start from scratch. © Imprise Financial PCC, Inc. 2016 CEO Tom Lix said he “wouldn’t be $100,000 StartMart estimates that its surprised” if a lot of entrepreneurs Amount Cleveland Whiskey must fundraising costs would range from are still thinking about raising capi- raise in order to keep the cash. $50,000 (if it hits its minimum goal, tal online through crowdfunding. $200,000) to $75,000 (if it hits its As of 4 p.m. on Friday, May 27, $1 million maximum $1 million goal), accord- Cleveland Whiskey had raised ing to its profile on SeedInvest.com. Cleveland Whiskey’s long-term goal $71,200 from 137 people via Wefun- The company — which among oth- for the campaign. der.com, one of several websites er things wants to build more private that are approved to run crowdfund- funding and more about building re- offices at its headquarters on the ing campaigns. The company will be lationships with his customers. second floor of Terminal Tower — able to keep the cash if it raises at Through email and social media, had raised $9,000 as of 4 p.m. on least $100,000, but it aims to raise up he’s trying to convince Cleveland May 27. to $1 million. Whiskey drinkers to become Cleve- Like Cleveland Whiskey, Start- Cleveland Whiskey — which uses land Whiskey investors. Mart wants the people who use the a patented process that ages Granted, it’s not free to raise cap- company’s coworking space to be- whiskey in a single day, instead of ital this way. If he raises the full mil- come investors. Those who do will several years — would use the mon- lion, he estimates he’ll end up get a bonus: Free access to a desk at ey to expand production and distri- spending $40,000 to $50,000 on StartMart until May 31, 2017. And bution. But Lix says the crowdfund- lawyers, accountants and document StartMart will get a committed ing campaign is less about the processing costs. That total will be SEE CROWD, PAGE 24 Teraphysics sets $47M goal

Teraphysics Corp. aims to raise $47 million through a form of crowdfunding often referred to as a “mini IPO.” After spending more than a decade developing a palm-sized device designed to vastly increase wireless data speeds, the Highland Heights company plans to start turning its technology into an actual product. To fund that plan, Teraphysics is taking advantage of a regulation that Jennifer Fernandez, went into effect last summer: The Cummins CCIM, SIOR company has filed for a Regulation A+ tel 330 535 2661 Commercial Real Estate Services, Worldwide. www.naicummins.com stock offering. The company expects the U.S. Securities and Exchange Commission to formally approve the "RITTAIN3QUARE/FÚCE2ETAIL3PACE!VAILABLEFOR,EASE offering in a matter of days, said Don Battista, chief business and market strategy director for Teraphysics. Reg A+ offerings were made possible by the Jumpstart Our Business Startups Act of 2012. The JOBS Act is Teraphysics makes a palm-sized device that vastly increases wireless best known as the bill that made it data speeds. (Contributed photo) legal for companies to raise up to $1 million in investment capital via the file financial reports with the SEC Among other things, the company internet, from everyday people, not twice a year if it conducts the Reg A+ would use money to build a minia- just accredited investors (see Page offering, but it would have to file re- ture wireless network designed to One for a story on that topic). ports every quarter if it did an IPO. show potential customers that its de- But Reg A+ offerings give compa- Teraphysics must raise at least vice can transmit data at blistering nies a way to raise much larger $10 million by Nov. 23 to receive any speeds from its headquarters to an- amounts of capital from the general capital. If that happens, the compa- other point a mile or so away, Battista 1717 Brittain Rd., Akron, OH public. The annual cap for a Reg A+ ny’s shares would be traded through said. Teraphysics’ first high-frequen- offering is either $20 million or $50 a website run by its underwriter, cy amplifier should be able to achieve New Ownership with New Building Upgrades million, depending on which path a ASMX Capital of Los Angeles. Soon transfer speeds of 10 to 20 gigabits per Well Below Market Lease Rates company takes. thereafter, the company will attempt second — which would be hundreds The process does involve jumping to have its shares listed on a stock of times faster than your standard 1DS@HKØ@MCØ.EÚBDØ2O@BDØ U@HK@AKD through a few regulatory hoops, but exchange run by OTC Markets home internet connection. The com- 2DUDQ@KØ2HYDRØNEØ2O@BDØØRP ØES ØTOØSNØ ØRP ØES it’s not as burdensome as a full ini- Group Inc. It eventually aims to list pany believes that future products tial public offering, Battista said. For shares on the NASDAQ, Battista should be able to reach 150 gigabits LOKDØ/@QJHMFØVHSGØ$WBDKKDMSØ2HFM@FD instance, Teraphysics will have to said. per second. — Chuck Soder 20160530-NEWS--24-NAT-CCI-CL_-- 5/27/2016 4:44 PM Page 1

PAGE 24 z MAY 30 - JUNE 5, 2016 z CRAIN’S CLEVELAND BUSINESS

How equity That lack of demand caused Rod- man to question his projections for CROWD crowdfunding works equity crowdfunding as well — a mar- CONTINUED FROM PAGE 23 Equity crowdfunding is legal, so ket Crowdentials had been planning now you can invest in startup to target since 2012. Thus, in Decem- customer who’s more likely to rec- companies via the internet, even if ber, he decided to close up shop in- ommend the coworking space to a you’re not rich. But you’ll have to stead of raising additional capital. friend, said CEO Charles Stack. follow new rules set by the U.S. He’s still a big fan of crowdfund- Stack said that many consumer Securities and Exchange ing, but he thinks it will take time to products companies could benefit Commission. catch on. by raising investment capital from Vestor CEO Matthew Moss made their own customers. And that in- If your net worth and your similar comments. In April, he shut cludes restaurants and retailers. income both exceed $100,000. down his website, which used the “But it will take a while to change In that case, take the lower of the general solicitation rule to recruit in- 80 years of prohibition,” he said, re- two dollar figures. You can invest vestors for real estate projects in the ferring to the Securities Act of 1933, up to 10% of that amount over a Cleveland area. So what went which prevented private companies 12-month period. wrong? Moss said developers often from publicly announcing plans to If you don’t meet both the net preferred to use more familiar fi- raise money. worth and income standard. In nancing tools, given how long it takes to recruit groups of individual Hard to find the sweet spot that case, the percentage falls to 5%. At a minimum, however, you investors — and the uncertainty in- Crowdfunding might not work as can invest up to $2,000. volved in the process. He thought well for newer companies that don’t about broadening his focus to in- You already have customers who can be The maximum investment: clude unaccredited investors, but in can’t buy more than $100,000 turned into investors. Same goes for the end it didn’t make sense. worth of shares during a 12-month companies that sell products to oth- Crowdfunding will catch on faster period through crowdfunding, er businesses and companies that as funding portals provide more ser- even if they’re spread across need to raise large amounts of mon- vices to make the process easier, multiple companies. ey, according to a few people who said Cohen, Braintree’s CEO. He’d — Chuck Soder spoke with Crain’s. However, those also like to see the $1 million cap is businesses might benefit by taking raised. advantage of other fundraising tech- Nationwide, roughly 1,900 com- “For a high-tech startup, a million niques described in the JOBS Act. panies initiated stock offerings de- dollars is not that much,” he said. For instance, one local company, signed to take advantage of the gen- It’s also too low for many real es- Teraphysics Corp., aims to raise $47 eral solicitation rule between Sept. tate deals, said Vadim Kleyner, CEO million through a “mini IPO” made 23, 2013, when it went into effect, of a Highland Heights company possible by the 2012 law (see Page 23 and the end of 2014, according to an called Brelion, which uses the gener- for more details). And some local SEC study published last year. They al solicitation rule to recruit accred- companies have taken advantage of raised $33 billion — 2% of all capital ited investors to fund residential and the “general solicitation” rule, which raised by private companies selling commercial real estate projects. allows companies to publicly an- stock under Regulation D. But that’s more than enough mon- nounce that they’re raising capital, Rodman had projected that more ey for, say, a local restaurant opening even if they’re not doing a full companies would use the general a new location. If a new restaurant crowdfunding campaign. solicitation rule. Thus, there wasn’t was opening near his home in Gates The number of companies using enough demand for Crowdentials’ Mills, Kleyner said he’d think about the general solicitation rule also has software, which helped those com- becoming an investor. been relatively modest — which is panies meet a regulation requiring “Would I go into the restaurant one reason why Cleveland-based them to verify that their investors more often than I go to others? Of Crowdentials went out of business, were indeed wealthy enough to fall course I would. This is genius for lo- said cofounder Rich Rodman. into the “accredited” category. cal businesses,” he said. Cleveland Whiskey CEO Tom Lix (Contributed photo) REAL ESTATE CLASSIFIED Phone: (216) 771-5276 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Lynn Calcaterra E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 25 LARGEST PUBLIC COMPANIES The List Ranked by Market Value

MARKET VALUE NET INCOME COMPANY/TICKER SYMBOL (MILLIONS) (MILLIONS) THIS LAST HEADQUARTERS PERCENT PERCENT RETURN ON TOP LOCAL EXECUTIVE YEAR YEAR PHONE/WEBSITE 4-30-2016 4-30-2015 CHANGE 2015 2014 CHANGE EQUITY LINES OF BUSINESS TITLE

Eaton/ETN $28,977.7 $32,103.8 -9.7% $1,979.0 $1,793.0 10.4 13.0 Electrical, hydraulic, Craig Arnold 111000 Eaton Blvd., Cleveland 44122 aerospace, truck and chairman, CEO (1) (440) 523-5000/www.eaton.com automotive products

Sherwin-Williams Co./SHW $26,574.7 $25,905.7 2.6% $1,053.8 $865.9 21.7 121.4 Coatings and related Christopher M. Connor 22101 W. Prospect Ave., Cleveland 44115 products executive chairman (216) 566-2000/www.sherwin.com

Progressive Corp./PGR $19,005.8 $15,657.4 21.4% $1,267.6 $1,281.0 -1.1 17.4 Insurance and financial Glenn Renwick 346300 Wilson Mills Road, Mayfield Village 44143 company chairman, president, CEO (440) 461-5000/www.progressive.com (2)

Parker Hannifin Corp./PH $15,674.6 $17,003.4 -7.8% $842.8 $1,090.8 -22.7 17.6 Fluid power systems, Thomas L. Williams 436035 Parkland Blvd., Cleveland 44124 electromechanical controls chairman, CEO (216) 896-3000/www.parker.com

The J.M. Smucker Co./SJM $15,197.6 $11,796.4 28.8% $407.4 $553.7 -26.4 5.6 Manufacturer of branded Mark T. Smucker 57One Strawberry Lane, Orrville 44667 food products president, CEO (330) 682-3000/jmsmucker.com

FirstEnergy Corp./FE $13,841.4 $15,121.8 -8.5% $578.0 $299.0 93.3 4.7 Electric utility holding Charles E. Jones 6576 S. Main St., Akron 44308 company president, CEO (800) 736-3402/www.firstenergycorp.com

TransDigm Group Inc./TDG $12,210.4 $11,161.6 9.4% $466.6 $316.3 47.5 NM Designer and producer of W. Nicholas Howley 781301 E. Ninth St., Suite 3000, Cleveland 44114 highly engineered aircraft chairman, CEO (216) 706-2939/www.transdigm.com components

KeyCorp/KEY $10,351.7 $12,295.8 -15.8% $916.0 $900.0 1.8 8.5 Bank holding company Beth E. Mooney 86127 Public Square, Cleveland 44114 chairman, CEO (216) 689-6300/www.key.com

Goodyear Tire & Rubber Co./GT $7,704.4 $7,655.8 0.6% $307.0 $2,452.0 -87.5 7.8 Tire manufacturer Richard J. Kramer 99200 Innovation Way, Akron 44316 chairman, CEO, president (330) 796-2121/www.goodyear.com

RPM International Inc./RPM $6,712.7 $6,334.0 6.0% $329.8 $220.3 49.7 26.6 Specialty coatings for Frank C. Sullivan 10 10 2628 Pearl Road, Medina 44258 industrial and consumer chairman, CEO (330) 273-5090/www.rpminc.com markets

DDR Corp./DDR $6,376.1 $6,133.8 3.9% ($72.2) $117.3 -161.5 NM Real estate investment trust David J. Oakes 11 11 3300 Enterprise Parkway, Beachwood 44122 president, CEO (216) 755-5500/www.ddr.com

Steris plc/STE $6,069.1 $3,960.8 53.2% $94.4 $132.5 -28.8 3.2 Maker of sterile processing Walter M. Rosebrough Jr. 12 16 5960 Heisley Road, Mentor 44060 and infection prevention president, CEO (440) 354-2600/www.steris.com systems

Forest City Realty Trust Inc./FCE-A $5,356.1 $4,727.6 13.3% $496.0 ($7.6) 6,631.2 14.1 Owner and developer of real David J. LaRue 13 14 50 Public Square, Suite 1100, Cleveland 44113 estate president, CEO (216) 621-6060/www.forestcity.net

TFS Financial Corp./TFSL $5,145.3 $4,332.9 18.7% $73.8 $66.5 11.0 4.3 Bank holding company Marc A. Stefanski 14 15 7007 Broadway Ave., Cleveland 44105 chairman, CEO (216) 441-6000/www.thirdfederal.com

Nordson Corp./NDSN $4,372.8 $4,905.2 -10.9% $209.4 $254.8 -17.8 32.2 Adhesives, coating and Michael F. Hilton 15 13 28601 Clemens Road, Westlake 44145 sealant applicators president, CEO (440) 892-1580/www.nordson.com

Lincoln Electric Holdings Inc./LECO $4,312.2 $5,053.7 -14.7% $127.5 $254.7 -50.0 13.7 Designs and manufactures Christopher L. Mapes 16 12 22801 St. Clair Ave., Cleveland 44117 welding products chairman, president, CEO (216) 481-8100/www.lincolnelectric.com

FirstMerit Corp./FMER $3,672.4 $3,204.8 14.6% $229.5 $238.0 -3.6 7.8 Bank holding company Paul G. Greig 17 19 III Cascade Plaza, Akron 44308 chairman, president, CEO (330) 996-6300/www.firstmerit.com

Cedar Fair LP/FUN $3,253.0 $3,150.4 3.3% $112.2 $104.2 7.7 196.8 Amusement and water parks Matthew A. Ouimet 18 20 One Cedar Point Drive, Sandusky 44870-5259 in the United States and president, CEO (419) 627-2233/www.cedarfair.com Canada

PolyOne Corp./POL $3,023.9 $3,487.2 -13.3% $144.6 $79.2 82.6 20.5 Provider of specialized Robert M. Patterson 19 17 33587 Walker Road, Avon Lake 44012 polymer materials, services chairman, president, CEO (440) 930-1000/www.polyone.com and solutions

The Timken Co./TKR $2,822.7 $3,480.8 -18.9% $70.8 $170.8 -141.5 NM Specialty steels and highly Richard G. Kyle 20 18 4500 Mount Pleasant St. N.W., North Canton 44720 engineered bearings and president, CEO (234) 262-3000/www.timken.com related products

Applied Industrial Technologies Inc./AIT $1,798.8 $1,719.5 4.6% $104.9 $118.9 -11.8 14.8 Distributor and provider of Neil A. Schrimsher 21 22 1 Applied Plaza , Cleveland 44115 industrial parts and service president, CEO (216) 426-4000/www.applied.com

Diebold Inc./DBD $1,707.6 $2,247.3 -24.0% $73.7 $114.4 -35.6 17.9 Integrated self-service Andreas W. Mattes 22 21 5995 Mayfair Road, North Canton 44720 delivery systems and president, CEO (330) 490-4000/www.diebold.com services

Ferro Corp./FOE $1,070.2 $1,173.5 -8.8% $64.1 $86.1 -25.5 20.3 Manufacturer of specialty Peter T. Thomas 23 28 6060 Parkland Blvd., Mayfield Heights 44124 performance materials chairman, president, CEO (216) 875-5600/www.ferro.com

Hyster-Yale Materials Handling Inc./HY $1,003.1 $1,196.3 -16.2% $74.7 $109.8 -32.0 16.2 Manufacturer of lift trucks, Alfred M. Rankin Jr. 24 27 5875 Landerbrook Drive, Suite 300, Cleveland 44124 provider of aftermarket chairman, president, CEO (440) 449-9600/www.hyster-yale.com parts

Cliffs Natural Resources Inc./CLF $958.7 $910.3 5.3% ($749.3) ($7,224.2) 89.6 NM Full-service iron ore Lourenco Goncalves 25 29 200 Public Square, Suite 3300, Cleveland 44114 company chairman, president, CEO (216) 694-5700/www.cliffsnaturalresources.com

A. Schulman Inc./SHLM $820.8 $1,243.3 -34.0% $23.0 $46.5 -50.5 4.1 High-performance plastic Bernard Rzepka 26 25 3637 Ridgewood Road, Fairlawn 44333 compounds and resins president, CEO (330) 666-3751/www.aschulman.com

Chart Industries Inc./GTLS $787.3 $1,238.4 -36.4% ($203.0) $81.9 -347.9 NM Maker of cryogenic Samuel F. Thomas 27 26 One Infinity Corporate Centre Dr., Suite 300, Garfield Heights processes and equipment chairman, president, CEO 44125 (440) 753-1490/www.chartindustries.com

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CRAIN’S CLEVELAND BUSINESS z MAY 30 - JUNE 5, 2016 z PAGE 27 LARGEST PUBLIC COMPANIES The List Ranked by Market Value

Fairmount Santrol Holdings Inc./FMSA $645.7 $1,414.4 -54.3% ($92.1) $170.5 -154.1 NM Provider of high- Jenniffer D. Deckard 28 23 8834 Mayfield Road, Chesterland 44026 performance sand and sand- president, CEO (440) 214-3200/http://fairmountsantrol.com based products

National Interstate Insurance Co./NATL $613.0 $555.9 10.3% $20.8 $11.0 89.1 5.8 Specialty property and Anthony J. Mercurio 29 34 3250 Interstate Drive, Richfield 44286 casualty insurance president, CEO (330) 659-8900/www.natl.com

Materion Corp./MTRN $580.7 $814.6 -28.7% $32.2 $41.1 -23.7 6.7 High-performance Richard J. Hipple 30 30 6070 Parkland Blvd., Mayfield Heights 44124 engineered materials chairman, president, CEO (216) 486-4200/www.materion.com

TimkenSteel Corp./TMST $563.1 $1,334.0 -57.8% ($72.4) $104.4 -169.4 NM Manufactures customized Ward J. "Tim" Timken Jr. 31 24 1835 Dueber Ave. SW, Canton 44706-0932 alloy-steel products, chairman, CEO, president (330) 471-7000/http://timkensteel.com provides heat-treat and machining solutions

CBIZ Inc./CBZ $535.0 $446.0 20.0% $34.1 $29.8 14.6 7.9 Provides outsourced Jerome P. Grisko 32 36 6050 Oak Tree Blvd. S., Suite 500, Cleveland 44131 business services president, CEO (216) 447-9000/www.cbiz.com

Nacco Industries Inc./NC $406.9 $354.4 14.8% $22.0 ($38.1) 157.7 10.9 Coal mining, small electric Alfred M. Rankin Jr. 33 38 5875 Landerbrook Drive, Suite 220, Cleveland 44124 appliances, specialty retail chairman, president, CEO (440) 229-5151/www.nacco.com

Myers Industries Inc./MYE $398.0 $503.9 -21.0% $17.8 ($8.7) 304.6 18.2 Polymer and metal products; R. David Banyard 34 35 1293 S. Main St., Akron 44301 equipment for tire service president, CEO (330) 253-5592/www.myersindustries.com

Invacare Corp./IVC $366.0 $644.6 -43.2% ($26.2) ($56.1) 53.3 NM Home health care equipment Matthew E. Monaghan 35 32 One Invacare Way, Elyria 44035 chairman, president, CEO (440) 329-6000/www.invacare.com

Omnova Solutions Inc./OMN $321.9 $373.9 -13.9% ($15.7) $7.1 -321.1 NM A producer of specialty Kevin M. McMullen 36 37 25435 Harvard Road, Beachwood 44122 chemicals and functional chairman, CEO, president (216) 682-7000/www.omnova.com surfaces

Park-Ohio Holdings Corp./PKOH $312.3 $579.1 -46.1% $48.1 $45.6 5.5 23.4 Diversified manufacturer Edward F. Crawford 37 33 6065 Parkland Blvd., Cleveland 44124 chairman, CEO (440) 947-2000/www.pkoh.com

United Community Financial Corp./UCFC $282.2 $265.8 6.2% $16.3 $50.2 -67.6 6.7 Bank holding company Gary M. Small 38 40 275 Federal Plaza West, Youngstown 44503 president, CEO (330) 742-0500/www.ucfconline.com

TravelCenters of America LLC/TA $281.7 $658.6 -57.2% $27.7 $61.0 -54.5 5.1 Interstate travel plazas; fuel, Thomas M. O'Brien 39 31 24601 Center Ridge Road, Suite 200, Westlake 44145 food, convenience stores managing director, (440) 808-9100/www.ta-petro.com and truck repairs president, CEO

Farmers National Banc Corp./FMNB $250.4 $152.2 64.5% $8.1 $9.0 -10.2 4.1 Bank holding company Kevin Helmick 40 43 20 S. Broad St., Canfield 44406 president, CEO (330) 533-3341/www.farmersbankgroup.com

Olympic Steel Inc./ZEUS $247.4 $120.3 105.7% ($26.8) ($19.1) -40.5 NM Steel service center Michael D. Siegal 41 44 5096 Richmond Road, Bedford Heights 44146 chairman, CEO (216) 292-3800/www.olysteel.com

Preformed Line Products Co./PLPC $219.1 $226.4 -3.2% $6.7 $12.9 -48.1 3.1 Wire and cable products Robert G. Ruhlman 42 41 660 Beta Drive, Mayfield Village 44143 chairman, president, CEO (440) 461-5200/www.preformed.com

Athersys Inc./ATHX $193.4 $93.2 107.4% ($16.4) ($22.1) 25.6 NM Biopharmaceutical company Gil Van Bokkelen 43 46 3201 Carnegie Ave., Cleveland 44115 chairman, CEO (216) 431-9900/www.athersys.com

ViewRay Inc. (3)/VRAY $178.8 NA NA ($45.0) ($33.8) -33.1 NM Designs, manufactures, and Chris A. Raanes 44 - 2 Thermo Fisher Way, Oakwood Village 44146 markets the MRIdian president, CEO (440) 703-3210 /www.viewray.com radiation therapy system

Shiloh Industries Inc./SHLO $111.9 $200.2 -44.1% $0.8 $19.9 -96.2 0.6 Steel processing Ramzi Y. Hermiz 45 42 880 Steel Drive, Valley City 44280 president, CEO (330) 558-2600/www.shiloh.com

Civista Bancshares Inc./CIVB $90.9 $87.6 3.7% $12.7 $9.5 33.8 10.2 Bank holding company James O. Miller 46 47 100 E. Water St., Sandusky 44870 president, CEO (419) 625-4121/www.civb.com

Energy Focus Inc./EFOI $90.9 $48.2 88.7% $8.8 ($5.8) 250.2 19.4 LED lighting products and James Tu 47 52 32000 Aurora Road, Solon 44139 solutions executive chairman, CEO (440) 715-1300 /www.energyfocusinc.com

Gas Natural Inc./EGAS $76.7 $105.6 -27.4% $4.7 $3.8 24.6 4.9 Distributes and sells natural Gregory J. Osborne 48 45 1375 E. Ninth St., Suite 3100, Cleveland 44114 gas president, CEO (440) 701-5100/ www.egas.net

Cortland Bancorp/CLDB $70.0 $67.9 3.1% $4.4 $3.9 13.2 7.7 Bank holding company James M. Gasior 49 49 194 W. Main St., Cortland 44410 president, CEO (330) 637-8040/www.cortland-banks.com

Middlefield Banc Corp./MBCN $60.1 $65.5 -8.2% $6.9 $7.2 -4.4 11.0 Bank holding company Thomas G. Caldwell 50 50 15985 E. High St., Middlefield 44062 president, CEO (440) 632-1666/www.middlefieldbank.com

Sifco Industries Inc./SIF $58.3 $79.5 -26.7% ($4.1) $2.7 -252.3 NM Production, repair, plating, Michael S. Lipscomb 51 48 970 E. 64th St., Cleveland 44103 machining and marketing of chairman, CEO (216) 881-8600/www.sifco.com jet engines

Consumers Bancorp Inc./CBKM $44.3 $49.2 -9.9% $2.8 $3.0 -8.8 6.5 Bank holding company Ralph J. Lober II 52 51 614 E. Lincoln Way, Minerva 44657 president, CEO (330) 868-7701/www.consumersbancorp.com

Wayne Savings Bancshares Inc./WAYN $35.9 $37.6 -4.4% $1.6 $2.6 -37.4 4.1 Bank holding company H. Stewart Fitz Gibbon III 53 53 151 N. Market St., Wooster 44691 president, CEO (330) 264-5767/www.waynesavings.com

RESEARCHED BY DEBORAH W. HILLYER

Numerical information provided by S&P Global Market Intelligence, www.spcapitaliq.com. The Market Cap and Total Return data used the April 29, 2016 close price for each company, net income figures represent trailing 12-month data through the quarter ending December, January or February depending on the fiscal year end of each company. NA=Not available. NM=Not meaningful. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. (1) Arnold is currently president and chief operating officer, he will become chairman and CEO on June 1, 2016. (2) Tricia Griffith, currently personal lines chief operating officer, will succeed Renwick as president and CEO on July 1. Renwick will continue as executive chairman of the board. (3) The stock began trading on Nasdaq on March 31, 2016. 20160530-NEWS--28-NAT-CCI-CL_-- 5/27/2016 12:29 PM Page 1