20150831-NEWS--1-NAT-CCI-CL_-- 8/28/20153:16PMPage1

74470 83781 35 [email protected] By KEVINKLEPS during‘afew’Shapiro says Dolans haven’t Indiansseasons turnedaprofit losing proposition? A The ClevelandIndiansinvestedacombined$104millioninMichaelBourn,left,andNickSwisher—signingsthatturnedoutto b NEWSPAPER year —andthey’vetakenlossesquiteafew less theywerewillingtotakehugelossesevery steward theprocessbetterordifferentlyun- make gobackintotheteam. es overtheyears,andanyprofitsDolans ligned ownershiphassufferedplentyofloss- Mark Shapiro,isthattheTribe’smuch-ma- sharing. receive fromtelevisionnetworksandrevenue in profits—thankstoeight-figurechecksthey rolls inMajorLeagueBaseball,makemillions ans, whoannuallyhaveoneofthelowestpay- “There arenotmanypeoplewhocould The reality,accordingtoteampresident The perceptionisthattheClevelandIndi- 12-story Tower Citystructure couldjoinL.A.business’growing downtown Cleveland —P. portfolio 4 MesoCoat CEOsays companydidn’tpay itsloansbecause of holdingcompanies’tiesto ‘crook’—P. 3 turning totheNFL,Indians’payrollrank- game. ownership wasamongthelargestin payroll inthefirsttwoseasonsofnew for thefifthconsecutiveyear,andclub’s cobs, theTribequalifiedforpostseason Dolans boughtthefranchisefromRichardJa- the Indiansin2000.Theseasonbefore ring istheDolans’$323millionpurchaseof ing morethananythingelse.” them, andIthinkthat’ssituationaltim- it tendstogetfocuseddisproportionatelyon pointment hastobefocusedsomewhere.And pectations are,butalotoftimesthedisap- Dolan family.“SoI’mnotsurewhattheex- years, includingthisyear,”Shapirosaidofthe What’s transpiredsince—theBrownsre- The timingaspecttowhichShapiroisrefer- Vol. 36,No.35 very valuable). everywhere (and programs are Cleveland Browns branded Officially INSIDE: ALSO Entire contents pletely, butbyandlargedeterminedsize enue, andthoselocalrevenuesarenotcom- bulk ofourrevenuedependentonlocalrev- Jays. “Sojuststartwiththat.Thatmakesthe to bethenextpresidentofTorontoBlue who recentlywasmentionedasacandidate salary cap,”saidthelongtimeTribeexecutive, shares limitedrevenue,andthenhasno lenge thatwehaveisbaseballagame ing asmuchtheycould,orshould. the franchise—thatIndiansaren’tspend- most commoncomplaintleveledbyfansat has beenwell-chronicled. Tribe winningoneplayoffseriessince2002— ing andattendanceplummeting,the “Always remembertheoverarchingchal- Shapiro hasasimpleexplanationforthe © 2015 byCrainCommunicationsInc. PRSBUSINESS—PAGES 15-20 SPORTS See INDIANS, e regrettable. GETTY IMAGES ae2 See page 22 [email protected] By JAYMILLER reach GOPdelegates, guests will gooutof theirway to Marketers andadvertisers ideal target crowd is Convention veloping aninventoryofsignagethathewill “We liketobeprepared.” Group, aWarehouseDistrictmarketingfirm. president formediaservicesattheAdcom portunities,” saidLorenChylla,executivevice also havegoals”forliningupmarketingop- handed outCNNballcaps. pany’s logo.CNNhadaheadquarterswhereit out ChapStickandcupcozieswiththecom- past conventions,forexample,AT&Tpassed tion delegatesmillingarounddowntown.At dia, lobbyists,otherguestsandevenconven- will justtrytomakeanimpressionontheme- policy orwhatmilitaryhardwaretobuy. might endupmakingdecisionsaboutenergy dining aimedatthosewhocometotown marketing willbeheavyduty,thewiningand trendsetters anddecisionmakers.Someofthe ential markettargetcomprisingaffluent latest, glitziestmodels. strategically locatedparkinglottodisplayits Or maybeanautomakerwilltakespaceina Quicken LoansArenatothedowntownhotels. cycling containersalongtheroutesfrom conventions, itmaybeCoca-Cola-themedre- town. ForCoca-Cola,asithasdoneatpast the freetrolleysthatcirculatethroughdown- tion. ning tofigureouttheiranswerthatques- July? idence inClevelandfortheGOPconvention on thesmallcityofpeoplewhowillbeinres- Chylla isgatheringnamesofbusinesses,de- “We haveclientsthatareinterestedbutwe But mostoftheadvertisingandmarketing The conventioncrowdisaneliteandinflu- For UniversityHospitals,itmaybeadson Marketers andadvertisersarejustbegin- How doesabusinessmakeanimpression 20/UUT3 ETME 6,2015 31-SEPTEMBER $2.00/AUGUST CONVENTION, page 23 20150831-NEWS--2-NAT-CCI-CL_-- 8/27/2015 4:08 PM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY

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All customers are not created equal. :VTL HYL TVYL WYVÄ[HISL [OHU V[OLYZ Focusing on those customers who are August 31 TVYL WYVÄ[HISL JHU TLHU H IPN IV[[VT line increase for your business. )\[OV^KV`V\KV[OH[&1LɈ:\ZIH\LY By The Numbers co-developer of the COSE Strategic 7SHUUPUN*V\YZLOHZPKLU[PÄLK[OYLLRL` BYOD Usage Z[LWZ I\ZPULZZLZ ZOV\SK [HRL [V ÄUK V\[ the answer to that question.

STEP Know your own cost 1 At the end of the day, Susbauer says, customers don’t care in the when that business starts going after your should have a laser-like focus on those least what your costs are. They just want customers. What are your options if this customers who meet what you have to to satisfy their own needs. This means it’s happens? Susbauer says in addition to VɈLY-PN\YLV\[^OV[OVZLJ\Z[VTLYZHYL up to the individual business to keep a changing your cost structure, you can also and go after them. watchful eye over its own cost structure. improve the perceived value of what you’re “Sales are vanity,” Susbauer says. All businesses should ask these VɈLYPUN ¸7YVÄ[ZHYLZHUP[`¹ questions of themselves, Susbauer says: How do you do that? It could be as ¸*HU `V\ M\SÄ SS J\Z[VTLY ULLKZ ^P[O[OL ZPTWSL HZ VɈLYPUNH¸I\` VUL NL[ VUL¹ cost structure that’s in place? Does that deal, coupons, or a free consultation. The COSE Strategic Planning Course 60% 14% cost structure enable you to make a is a six-month, results-oriented process that Know your market of employers allow the have plans to WYVÄ[&¹ STEP delivers concentrated executive-level busi- use of personal devices implement such a As hard as you might try, you’re ness education and exceptional networking 3 for work purposes. policy this year. STEP Understand what the competition never going to be able to take opportunities. The course is designed to help down Wal-Mart, Susbauer says. The retail you overcome obstacles while building the 2 is doing SOURCE: TECH PRO RESEARCH If the business down the street is NPHU[JHUHɈVYK[VSVZLTVUL`I`ZLSSPUN foundation to take your business to the next selling the same thing you are for less than below cost. You can’t. What you can do is stage. Learn more at www.cose.org/spc you are, you will probably be in trouble know your own market inside and out. You Connection Calendar COFFEE WITH COSE 52 TIPS FOR YOUR BUSINESS Get an early start with other COSE members at this casual round table session. Discuss tips HUK[YPJRZVM[OL[YHKLV]LYHJ\WVMJVɈLL:OHYL #35 – BYOD Can be a Boon to Productivity your challenges and successes with your peers, and get real advice on how to grow your business! Employees are increasingly using their implications arise from the use of employee- SEPTEMBER 16 own devices to do at least some of their work. owned devices. You might need to revise and 8:30 – 10:00 AM BYOD (“Bring Your Own Device”) examples strengthen some of your existing guidelines. Panera Bread, Solon range from accessing company email and You should identify and answer the unique calendar remotely to working from home questions raised by BYOD: Cost: $5 on a computer connected to the company Register at www.cose.org/events. network. Users often prefer to use their ₔ >PSS[OLJVTWHU`WH`VYZOHYL[OLJVZ[& own tablets or laptops to access company systems, especially when working remotely. ₔ >PSS0;WYV]PKL[LJOZ\WWVY[VU COSE WEBED SERIES: TRADE SHOW BYOD can be a boon to productivity. It’s user-owned devices? EXHIBIT SECRET SAUCE convenient and users like the ability to work Are you and your team struggling to unlock the with the devices with which they are most ₔ >PSS[OLYLILHSPZ[VMHWWYV]LKOHYK^HYL keys to trade show success? Rock The House comfortable. Additionally, there might be cost operating systems and applications? Founder/CEO Matt Radicelli shares their team’s secret Tony Felice, savings for the company when users provide sauce that keeps the troops happy and the leads Inline Technology Services, LLC pouring in. This informative presentation will begin with their own hardware. Large organizations often ₔ >PSS[OLJVTWHU`OH]L[OLHIPSP[`HUK an interactive assessment of your current trade show right to remotely “wipe” a device that enforce formal policies to realize advantages start by doing research and adapting BYOD tactics and strategies, then build on a series of industry while mitigating risks of BYOD. They also policy examples from other organizations to has been lost or stolen (or when the best practices and methods that just plain work! Matt invest in technologies that make it easier Ä[OPZVYOLYI\ZPULZZ()@6+WVSPJ`ZOV\SK employee is terminated or leaves the will also share creative ideas about booth design for IT departments to safeguard corporate complement and extend your information organization)? concepts, motivating and managing your team, and data even when it’s accessed from a device security policy and acceptable use policy. keeping it all fun in the process! the company doesn’t own. Small business Your security policy should provide rea- BYOD is here to stay. The “consumer- SEPTEMBER 18 owners, however, could wonder whether it is sonable safeguards against unauthorized ization of IT” is a cultural phenomenon and worth the expense to implement. access. Passwords shouldn’t be “1234.” business trend. A thoughtfully-developed Register at www.cose.org/events. It would be a mistake for any business Those responsible for IT should have pro- policy will help manage risks and maximize TH owner to ignore the BYOD question. “Just cedures for granting access to company re- )@6+ILULÄ[Z 10 ANNUAL COSE Say No” probably won’t work because some sources, including in emergency situations. SMALL BUSINESS CONVENTION \ZLYZ ^PSS LHZPS` ÄN\YL V\[ OV^ [V JVUULJ[ Rules should clarify what can be shared in Now in its 10th year, the COSE Small Business i Want more expert advice? Check out their smartphones and tablets to the public-facing resources such as public or Convention is the premier event for entrepreneurs Linktunity (www.cose.org/linktunity), company’s email system and perhaps even shared Dropbox folders or FTP servers. and small business owners in the Midwest. Partners an online forum connecting business from across the region come together to produce the to its internal network. “Just Say Yes (And Your acceptable use policy should be de- owners with creative solutions to the ultimate experience for small business professionals, Hope for the Best)” might also be a costly signed minimally to prevent abuse of IT re- tough questions they face every day. complete with nationally-recognized keynote speakers, mistake. Is there another choice? ZV\YJLZ[OH[HɈLJ[V[OLY\ZLYZHUKWYVOPIP[ a business-to-business trade show, special events and users from damaging the company’s reputa- unforgettable networking experiences. A thoughtful, practical alternative tion or even exposing it to legal risk. Among COSE’S TAKEAWAY OCTOBER 21-22 The alternative is implementation of a other things, this would mean prohibiting the Cleveland Public Auditorium & BYOD policy that balances user wants with use of company resources to publish spam, Conference Center, Cleveland the company’s need to support productivity, hateful or other illegal speech or to adversely Ensure your business is ready protect resources, and manage costs. A HɈLJ[PU[LYUHSVYL_[LYUHSZ`Z[LTZ to make the leap to BYOD, Cost: COSE members $159, non-members $310 X\HSPÄLK0;ZLY]PJL]LUKVYJHUOLSW^P[O[OPZ With your security and acceptable or you might be dealing Register at www.smallbizconvention.com A budget-conscious business owner might use policies in hand, consider what new with headaches later on. Check out www.cose.org/events CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES for all the latest happenings. 20150831-NEWS--3-NAT-CCI-CL_-- 8/28/2015 3:12 PM Page 1

AUGUST 31 - SEPTEMBER 6, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Colleges are moving to fill gap Two-year institutions are working to help manufacturing companies fill what’s expected to be large void

By RACHEL ABBEY McCAFFERTY ployers on whether Lakeland’s cur- [email protected] riculum meets their current and fu- ture needs, Gahr said. The council With the help of a federal grant, met for the first time in mid-Au- community colleges across the gust. state are taking steps this year to Cuyahoga Community College better prepare the next generation also is expanding its welding pro- of workers for manufacturers and gram with help from the grant. Ali- other industries. cia Booker, vice president of oper- At Stark State College in North ations and manufacturing, said the Canton, that will mean an expand- school is creating a “stackable plat- ed machine shop. At Lakeland form” of training options for stu- Community College in Kirtland and dents. The college previously of- Cuyahoga Community College in fered a 10-week welding boot camp Cleveland, it’s taking the form of that helps employers fill gaps right rapidly growing welding programs. away, but in January, it will begin A lack of qualified workers is a big offering the option of a one-year problem for manufacturers, and it’s CREDIT: ABOVE, LAKELAND COMMUNITY COLLEGE; BELOW, LORAIN COUNTY COMMUNITY COLLEGE credit certificate. one that could continue to grow as At top, Malcolm Spears, a student worker in Lakeland Community College’s welding lab, observes Carl Ellefsen, an Stark State’s portion of the grant existing employees retire. A 2015 re- engineering lab technician, demonstrating stick welding. Below, Roger Diamond, a Lorain County Community College is allowing the school to expand its port from the Washington, D.C.- associate professor, reviews corrections on a CNC program with student Beverly Minnich. machine shop, which also will in- based Manufacturing Institute and clude two large 3-D printers fund- consulting firm Deloitte estimated ed through a separate grant. The that between retirements and indus- school also is working to secure Na- try growth, close to 3.4 million man- tional Institute of Metalworking ufacturing jobs would be available in Skills credentials to launch with the the next 10 years. But, based on cur- expanded shop. When it opens in rent percentages of open positions, the spring, students will be able to about 2 million of those positions create prototypes, said Donald M. could go unfilled if job-training ef- Ball, dean of engineering technolo- forts aren’t boosted significantly. gies and information technologies. Ohio’s community colleges are “It’s really a giant step forward,” working to close that gap with the Ball said. help of a $15 million Trade Adjust- Overall, the region’s community ment Assistance Community Col- colleges have “embraced their role lege and Career Training grant re- and responsibility” in addressing ceived late last year. The grant the manufacturing skills gap, a project, known as the Ohio Techni- move that has become more delib- cal Skills Innovation Network, is erate in the past eight to nine being spearheaded by Elyria-based months, said Judith Crocker, exec- Lorain County Community Col- utive director for workforce and tal- lege, but it spans 11 schools and in- Community College. of the funds differently, but all are land, where enrollment in welding ent development at Magnet in cludes industry partners, according “It really does put employers at expanding job-training efforts in the was growing, Gahr said. The grant Cleveland. to a news release. the table,” Green said. region. For example, the grant has allowed the college to grow its ca- The local community colleges The grant money allows the col- The efforts are close to the heart allowed Lakeland Community Col- pacity by adding new equipment, have been looking at unique ways leges to work with companies of all of the college’s mission, as the stu- lege to grow and expand its welding and it’s expanded its curriculum to to offer short, focused training, she sizes to identify the jobs available dents and the employers it serves program, said project manager Linn include pipe welding. said. It’s important to offer pro- and the core skills needed in the in- tend to stay in the area. The college Gahr. The grant focuses on develop- And to better engage employers, grams that lay down a pathway of dustry, said Tracy Green, vice pres- needs to remain relevant in terms ing programs where there is job de- the school has created a welding career growth for job seekers. ident for strategic and institutional of what industry needs, Green said. mand and solid wages. The timing advisory committee to gather “It’s not dead-end training,” development at Lorain County The schools are using their share couldn’t have been better for Lake- thoughts from a range of local em- Crocker said. MesoCoat blames default on scheme run by ‘crook’ Euclid-based metal coatings business lands in receivership, owes $1.77 million to company in Panama

By CHUCK SODER Why would Sonoro work with George stop companies from taking actions outside For instance, last week, Miller spoke with [email protected] Town? Miller claims that they are both con- the normal course of business, Abakan Crain’s late at night, because he was in Asia trolled by one man, from his hometown of swapped shares and other assets with the ad- “negotiating with people who like the prod- Was MesoCoat hoodwinked by a crooked Vancouver: John Xinos. vanced materials company that founded uct.” And before the judge made her decision, investor, or did it just fail to pay back its loans A lawyer representing Xinos denied that MesoCoat — Powdermet Inc. of Euclid. MesoCoat announced plans to eventually on time? claim, noting that other men are listed as the Thus, the court-appointed receiver is now build a second plant in Euclid, on land ac- The Euclid-based metal coatings technol- trustees of the two companies. Steve Jackson tasked with finding a way to pay back the quired in the Powdermet deal. ogy company has been put under the control of Forstrom Jackson, a law firm in Vancouver, $1.77 million that MesoCoat owes to George At the moment, however, MesoCoat does- of a court-appointed receiver after missing dismissed Miller’s argument as “the last des- Town. n’t have the money or the decision-making deadlines to pay back loans issued by two perate gasp” of someone who doesn’t want to All of MesoCoat’s employees are still get- power to go forward with that plan. holding companies in Panama. make loan payments. ting their paychecks, and receiver Robert Sei- U.S. District Court Judge Denise Cote dis- But the CEO of MesoCoat’s parent compa- den says he wants to keep it that way. He’s Trade association ny, Abakan Inc., says that the company is a missed Miller’s argument as well and never talking to a few potential lenders who have victim of a scheme led by an investor he de- called on Xinos to testify. In her view, it did- expressed interest in financing the company, Abakan and MesoCoat couldn’t prove to scribed as a “crook” with a shady past. n’t matter whether he controlled both of the he said. Though MesoCoat has had financial the court that Xinos was involved with either In court, Abakan CEO Robert Miller argued Panama-based holding companies. The two problems, the company appears to have of the Panamanian companies that issued the that the two holding companies worked to- companies both had a legitimate goal: To get “enormous potential,” according to Seiden, loans. But Miller said Xinos and his lawyers gether to force MesoCoat to end up in re- their money back, she wrote in an opinion president of CSI Legal in New York. negotiated the loans. ceivership — a move that could give them a filed in the Southern District of New York on Granted, Abakan, which owns no compa- Xinos has been in trouble at least once in chance to buy the company on the cheap. Aug. 18. She added that Abakan also was late nies other than MesoCoat, lost nearly $4.5 the past. Miller claims that one of the lenders, Sonoro in filing a quarterly report with federal regu- million on just $773,000 in revenue during the In 2001, the Investment Dealers Associa- Invest, used stalling tactics during a separate lators — which was considered the equivalent nine-month period that ended on Feb. 28. tion of Canada stuck him with a $27,500 fine lawsuit against Abakan so that the MesoCoat’s of a loan default, according to George Town’s However, MesoCoat press releases say that for engaging in “16 unauthorized trades in parent legally wouldn’t be able to move ahead loan contract. big companies are starting to take interest in two different offshore corporate accounts,” with a deal to refinance a loan issued by the Cote also hit MesoCoat and Abakan with a its PcomP powders, which are used to according to an online newsletter from the other company, George Town Associates. And contempt of court violation. While under a strengthen metal components that need to association. None of the trades were that loan was about to come due. preliminary injunction that is supposed to endure lots of wear and tear. See MESOCOAT, page 23 20150831-NEWS--4-NAT-CCI-CL_-- 8/28/2015 3:01 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015 LEASED Newmark Grubb Knight Frank is pleased to announce the lease of New Heights Research at One Cleveland Center. Terry Coyne and Nate Wynveen represented the tenant. Visit Alex Jelepis TerryCoyne.com represented Or Call Terry at the landlord, 216.453.3001 Optima Ventures.

1350 Euclid Ave., Suite 300 Cleveland, Ohio 44115 STAN BULLARD The 12-story, 320,000-square-foot Skylight Office Tower could be switching owners in the near future. Skylight Office Tower looms as big Hertz buy California investor emerges as favorite for 12-story complex By STAN BULLARD Gary Horwitz, Hertz president cause the iconic office building also [email protected] and chief financial officer, respond- serves as its corporate headquarters. ed to queries about a potential Sky- Alec Pacella, managing partner of Hertz Investment Group, the Cal- light purchase with an email that NAI Daus Inc., a Beachwood-based ifornia investor with an appetite for said, “We have no comment.” brokerage firm, said it’s not uncom- office buildings across the country, Forest City spokesman Jeff Linton mon for parties in a major transac- looks to be closing in on buying the also declined to comment on the tion to return to the bargaining table 12-story Skylight Office Tower in formation of the Hertz-led Skylight after parting ways. Forest City Enterprises Inc.’s Tower company. “The seller or buyer may have re- City Center complex in Cleveland. In its most recent conference call, moved an impediment to closing Los Angeles-based Hertz earlier on Aug. 5, executives at Forest City the transaction the first time this year bought 27-story Fifth Third executives said they are continuing around,” Pacella said. “You also Center in downtown Cleveland for to offer Tower City and other older have a buyer that has put time and almost $54 million. It was rumored assets in noncore locations for sale, probably money into getting to to be the bidder that Forest City de- but that process is taking longer know the asset. So they are willing to scribed in 2014 as the prospective than they had hoped. look again. It happens all the time.” buyer of most of Tower City, al- “The sale of these targeted assets Moreover, a change that Forest though Forest City announced in aligns with our strategy to simplify City made on July 21 may portend a September of that year that it had business and while we’re not hold- sale. BE WHERE broken off negotiations. ing out for the last dollar, it’s also According to Cuyahoga County However, Forest City has contin- not a fire sale on these assets,” said land records, the lobby of the Sky- YOU WANT ued to offer the downtown shop- Bob O’Brien, Forest City’s chief fi- light building had been incorporat- ping and office complex for sale as nancial officer, according to a Seek- ed with the retail avenue, and the part of its drive to shed older prop- ing Alpha transcript of the call. company shifted ownership of the TO BE erties in non-core markets. An element that may aid Forest lobby back to the office tower itself. The properties are being market- City’s effort to dispose of Skylight is Although the massive Tower City ed as part of Forest City’s effort to that it has paid down nonrecourse Center complex incorporates con- continue cleaning up its balance debt on Skylight along with that on nected buildings that have been sheet to aid its shift from a real es- several buildings in other markets, built or redeveloped, the individual tate operating company to the tax- according to the company’s June 30 assets are structured as condomini- protected status of a real estate in- earnings announcement. When the ums to reflect the different uses in Let us help you get there. We help business owners vestment trust. The transition is company negotiates loan payoffs, it the project. plan for and implement a successful exit strategy. being pursued as part of a quest for typically secures principal reduc- Skylight Office Tower consists of higher stock market values more re- tions from its lenders. That might al- 320,000 square feet of office space Increase Value. Minimize Taxes. Protect Assets. flective of the value of its portfolio, low both parties more wiggle room and dates from 1990. The building is the company has said. Forest City to reach an amicable price. 96% leased, according to CoStar, an recently scheduled a shareholder online realty data service. Skylight meeting for Oct. 15 to decide on Office Tower overlooks a glass dome pursuing REIT status. Removing impediments atop the Avenue retail portion of Hertz’s renewed interest in at least Buying Skylight alone would be a Tower City. The opposite side of the a part of Tower City surfaced Aug. 13, simpler undertaking than also ac- dome is home to a Tower City build- when it formed an Ohio limited lia- quiring several pieces of Tower City ing housing the Ritz-Carlton Hotel Call our Certifi ed Exit Planning Advisor, Ray Lampner: 330.572.8014 bility corporation called Skylight Of- Center. and office space that Forest City de- fice Tower Mezzanine LLC, accord- The property also includes The veloped but that is now owned by [email protected] • www.BCGLegacyAdvisors.com ing to online records from the Ohio Avenue, which is the retail portion an affiliate of Dan Gilbert’s Detroit- Secretary of State’s office. of Tower City, and Post Office Plaza, based Rock Gaming concern. Volume 36, Number 35 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. The document identifies as the 1500 W. Third St., as the original Hertz is a major owner of down- Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Communications Inc. Periodi- agent for the limited liability corpo- deal included. However, if Hertz town office buildings throughout cals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, ration John D. Forbess, who is a vice buys Skylight, it may leave The Av- the United States, with 53 major ur- Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 212-210-0750 president and general counsel at enue and Post Office Plaza to anoth- ban properties representing almost Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks Hertz. The address of record is the er buyer. Forest City has said it in- 19 million square feet of office space for change of address. For subscription information and delivery concerns send correspondence to Audience Development Depart- ment, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleve- same as that of Hertz’s corporate tends to retain the Terminal Tower, in the downtowns of 20 U.S. cities land.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. headquarters. which gives Tower City its name, be- and 15 states. 20150831-NEWS--5-NAT-CCI-CL_-- 8/28/2015 2:02 PM Page 1

AUGUST 31 - SEPTEMBER 6, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Squire Patton Boggs’ Connell plotting unique path

By JEREMY NOBILE And that’s something she’s is vice. It wasn’t until she returned to She’s a member of United Way of [email protected] particularly suited for. The Pennsyl- the states with her husband that Greater Cleveland’s Women’s vania native, who studied interna- she enrolled at Case Western Re- Leadership Council and serves as Considering she was once a diplo- tional relations at Georgetown Uni- serve University School of Law. The chair of the Case Western Reserve mat for the United States, becoming versity, is a former foreign service family lives with their three kids in Women’s Law & Leadership Con- a veritable ambassador for her pow- officer for the U.S. Department of Shaker Heights today. ference. erhouse international law firm State. She served at American em- “(Law school) was on my radar “In the years that I have known seems like a natural fit. bassies in Warsaw, Poland, and for years,” Connell said. Michele, she has proven to be an This time, though, Michele Con- Tegucigalpa, Honduras. “But it was through the state de- exceptional lawyer and a highly re- nell will be leading the growth of a She was in Latin America when partment that I learned to enjoy the garded, natural leader whose expe- business instead of helping to re- the region was devastated by Hurri- business aspects of law more than rience, integrity and commitment build a hurricane ravaged country. cane Mitch in the late ’90s. There, litigating. I really like advising and to the community will continue our Connell, a partner in Squire Pat- as a commercial attaché, she counseling to a mutually beneficial firm’s storied history in Cleveland,” ton Boggs’ global corporate practice, helped stranded Americans and fa- result, and that’s what I do today Ruehlmann said in a statement. is set to take the reins of the firm’s cilitated bids with U.S. companies with advising on transactions.” He said Goodman “has guided Cleveland office as the company’s rebuilding everything from homes Beyond serving as a regional am- one of our largest offices through a first female office managing partner. to bridges. bassador within the firm itself, Con- tremendous period of growth for Connell blazes not only a trail for She eventually earned the Meri- nell also steps in as the firm’s fig- our firm, while also continuing our other female leaders — particularly torious Honor Award for her ser- urehead for civic engagement. great legacy of civic responsibility.” Michele Connell in the legal industry’s usually male- dominated international corporate M&A practice that she specializes in — but younger attorneys as well. At 42, she’s believed to also be the firm’s youngest U.S. office managing partner to date. Connell officially assumes the new leadership position next March. But her transition to the role, where she will replace current Cleveland office managing partner David Goodman, who has held the position for nine years, begins now. The two will serve We mean as co-managing office partners until next year. “She brings a perspective to lead- ership that her predecessors didn’t have about how law gets practiced these days, and that’s entirely a good business, Ohio. thing,” said Goodman, 63, referenc- ing Connell’s background as a diplo- mat and transactional lawyer. Goodman will remain with the firm, devoting time after the shift to his public finance practice. Lorain National Bank is now Northwest Bank. For Connell, who joined the firm in 2003 fresh out of Case Western Re- serve University School of Law, the position is certainly an opportunity to set a tone for future leaders. “I’ve worked with many women in Northwest is large enough to handle your BANK the corporate practice, so there were always women role models from the BORROW beginning. And I’ve had lots of male diverse financial needs, yet small enough to mentoring and support, too,” Con- nell said. “But to the extent anyone genuinely partner with your business. We can INVEST can look and say, ‘She’s the first at something,’ then that opens up the tailor a plan to do exactly what you need it to do INSURE possibility in anyone’s mind that it’s something that can be achieved.” The transition comes at a pivotal — help start, grow or protect your business. PLAN time for the firm itself as well. The business expanded into pub- lic policy with the acquisition of Washington, D.C.’s struggling lobby- ing powerhouse Patton Boggs in June 2014. Meanwhile, Connell will take over the spring before the Re- publican National Convention comes to Cleveland. The firm will be in the thick of the action considering its ties to the capitol and bench of active and for- mer politicians. Today, the Cleveland location, where legacy Squire, Sanders & Dempsey was founded in 1890, is the third-largest in the overall footprint 1-877-672-5678 • www.northwest.com — behind the D.C. and London of- fices — with about 120 lawyers. In the wake of the firm’s most re- cent merger, Squire Patton Boggs Member FDIC chairman and global CEO Mark Ruehlmann has charged regional managing partners with furthering connectivity among the firm’s 1,500 some lawyers in 44 offices across 21 countries. Beyond running the local office — no major, sweeping changes are ex- pected — enhancing collaboration across the globe will be among Con- nell’s ongoing priorities. 20150831-NEWS--6-NAT-CCI-CL_-- 8/28/2015 2:15 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015

For Sale - 27,487 SF Industrial/Warehouse Great User Opportunity! Tri-C, hoteliers are working together with RNC in mind

By DAN SHINGLER [email protected]

The 2016 Republican National Convention is less than a year away and, before it gets here, Cleveland’s hospitality industry and Cuyahoga Community College hope to ad- dress an age-old problem: training 5260 West Commerce Parkway, Parma and placing enough qualified work- ers to staff the city’s hotels. • 27,487 SF Available • Central A/C “The RNC is coming, and beyond • 3,500 SF Offi ce • 14’ - 18’ Ceiling Height the RNC, some of us want to deter- • Built in 1984, Refurbished in 1991 • 1 Truck Dock mine whether (hospitality industry) • 2 Acres of Land • 5 Drive-In Doors growth can be sustained. So we de- cided to bring in the general man- • Fluorescent Lighting • 800 AMP240V/3-Phase Power agers of the major hotels in the CUYAHOGA COMMUNITY COLLEGE • Forced Air/Gas • 40’ x 90’ Bay Size area, and … Destination Cleveland, William Gary (second from right) meets with area hotelier and tourism officials Joseph J. Martanovic to conduct a focus-group session,” on Aug. 13. 216.861.5434 said William Gary, executive vice president of Tri-C’s Workforce and skills to the softer skills required to their internal training, but Gary said Kevin J. Kuczynski Economic Development Division. work with the general public. Even the meetings and dialogue will con- HannaCRE.com 216.861.5684 “Tri-C wants to understand their basic math and literacy skills need tinue. And at least some hotels workforce challenges and issues to be addressed for some potential think the effort is a good one that (coming) within the next couple of workers. could have positive results. years,” he said. “I need to know in my restructur- “It could be enormous, the bene- Gary and executives from the un- ing of these workforce programs — fit for both the hotels and Tri-C,” der-construction Hilton Cleveland am I on the right track? And, if I’m said Steve Groppe, general manag- Downtown, the Hyatt Cleveland at not, what do I need to do to get er of Renaissance Cleveland. The Arcade, the Renaissance Cleve- back on the right?” Gary said. Groppe agreed with Gary that land Hotel, the boutique Aloft Tri-C will examine the existing hotels, restaurants and other hospi- Cleveland and the InterContinental in-house training programs that tality businesses constantly face a YourATeam some hotels already use to help do challenge in finding employees Suites Hotel all met on Aug. 13. They were joined by representa- that. It might also see if it can take with the skills they need. Also like tives of the tourism agency, Desti- over that training for some hotels, Gary, Groppe said he hopes that the nation Cleveland, as well as The Lit- perhaps even training their existing benefits for working with Tri-C ex- eracy Cooperative, a Cleveland workers to company specifications tend well beyond next year’s Re- nonprofit. The group discussed on a contract basis, Gary said. publican National Convention. why job applicants can’t find the He’s asking the hotels to do their “The RNC is one thing, but there are going to be needs on an ongo- jobs they want at area hotels, why part, too. For starters, that means ing basis,” Groppe said. the hotels can’t find workers and working more closely together, Teri Agosta, general manager of what can be done about it. sharing best practices and jointly the 600-room Hilton Cleveland “It was a beautiful meeting,” supporting external efforts like Tri- C’s to train more workers, Gary Downtown, said she’s also opti- Gary said. said. The industry needs to estab- mistic about Tri-C’s efforts. Her ho- Perhaps not surprisingly, one of lish and maintain a continual tel, now under construction, is set the first ideas to come from the pipeline of new workers, he added. to open next June. Before that hap- meeting was to hold a job fair for It also might mean that some ho- pens, she needs to hire nearly 400 the nearly 700 Tri-C students in tels change their hiring practices. new employees. hospitality-oriented programs, as Hoteliers say the number one rea- Agosta, who has managed hotels well as any other students interest- McDonald Hopkins LLC son they can’t hire all of the people in Washington D.C., Baltimore, ed in working in the hotel industry. they need is because of pre-em- Philadelphia and Scottsdale, Ariz., 
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#FBDI September to plan that event for wonders if they are being too tough the initiative. sometime later this year. — to their own detriment. Too of- “The fact that he’s reaching out mcdonaldhopkins.com “That’s the low hanging fruit,” ten, like other industries, hotels and to us is unusual. And he’s saying ‘I Gary said, adding that it’s certainly restaurants shut out potentially will build a curriculum around not the entire harvest that Tri-C and good employees for life because of you,’ Agosta said. “It’s the begin- the hotels hope to eventually reap. past mistakes, Gary said. ning of a partnership.” “I said: ‘Do you have data to sup- And, if Cleveland’s comeback On the right track? port those pre-employment re- continues, along with the expan- quirements and criteria as being sion of its hotel and restaurant in- Beyond the job fair, the real work sustainable in today’s times? You dustry, the challenge of finding em- begins. Gary first plans to better tai- may want to rethink those to open ployees will likely intensify. lor Tri-C’s existing curriculum so up access,’ ” he said. “Whenever you increase the that graduates leave with some of So far, none of the hotels have yet number of hotels and restaurants, it the qualifications hoteliers say they committed to making changes, or increases the competition for tal- need, ranging from management to having Tri-C take over some of ent,” Groppe said.

CORRECTION An incorrect listing appeared in the Aug. 24 Ohio leadership roles in the dynamic health care industry. of Lakeland Community College, which offers state- MBA Guide. This is the correct listing: The newest MBA in information technology manage- of-the-art technology, free parking and shuttle ser- Lake Erie College ment is designed for those who will lead an organi- vice. Additionally, Lake Erie College has developed PAINESVILLE, 440-375-7075 zation’s strategies to most effectively manage infor- an in-residence MBA program that can be cus- [email protected], DONNA BARES mation, support managerial decision-making and tomized for employers and offered at times and lo- TYPES OF MBAS AVAILABLE: Lake Erie College exploit the power of information technology to cre- cations convenient for those participating. offers three format options and four specializations ate a competitive advantage. The MBA for accoun- ONLINE OPTIONS: Several optional online courses for one’s personal needs and interests. Format op- tants allows students with an undergraduate ac- are offered. tions: The evening MBA allows students to take one counting degree, who meet certain criteria, to REQUIREMENTS FOR ADMISSION: Online appli- to four classes per semester, with each class meet- complete an MBA by enrolling in 10 courses rather cation completion, official undergraduate tran- ing one evening per week. The accelerated Satur- than 12. scripts, resume and writing samples. GMAT is typi- day MBA allows students to complete their MBA in MBA PROGRAM HIGHLIGHTS: IACBE (Internation- cally not required. Students may begin fall, spring as few as 11 months by taking classes on Satur- al Assembly of Collegiate Business Education) ac- or summer semesters with mid-semester starts days. The customized MBA allows students the abili- credited. The Lake Erie College Parker MBA does available as well. ty to create their own schedule, with complete flexi- not require any prior business courses. Additionally, SCHOLARSHIP/FINANCIAL AID AVAILABLE: bility each semester, taking evening courses in the Lake Erie College Parker MBA program has a The Stafford Loan is available for graduate students combination with accelerated courses. Specializa- “lifelong learning guarantee” that allows MBA gradu- for up to $20,500 per academic year. Students eli- tions: All four specializations provide a graduate ates to come back and take additional courses for gible for employer reimbursement are permitted to business education that is practical and real-world the rest of their lives, free of charge. This provides defer payment until up to one month after the end focused. The General Management MBA enables graduates with an opportunity for free ongoing pro- of the semester. students from a wide variety of backgrounds to de- fessional development. Information sessions will be GENERAL TUITION/FEE INFORMATION: Tuition velop managerial and professional competencies held Oct. 13, 2015, Jan. 6, March 8, May 2, Aug. and fees are $679 per credit hour. With 36 credit that cut across a full spectrum of industries and 3, 2016, all beginning at 6 p.m. at the Holden Uni- hours required for completion, regardless of under- business functions. The health care administration versity Center of Lakeland Community College. graduate major, the total program cost is $24,444. MBA prepares students for staff, managerial and CLASS LOCATIONS: The Holden University Center SIZE OF MBA PROGRAM: 150 students. 20150831-NEWS--7-NAT-CCI-CL_-- 8/27/2015 3:38 PM Page 1

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015 Painesville manufacturer making the most of waste Production has soared since products were turned into animal feed

By DAN SHINGLER [email protected]

When food manufacturers have to dispose of cooking oils, fats and other waste that is produced in the manufacturing process, they create a lot of waste. Or at least they used to. These days, a lot of that former scrap goes to Painesville, where it’s recycled and turned into nutrient- rich animal feed. Magnus International Group in Painesville — with its subsidiaries, Hardy Industrial Technology and Hardy Animal Nutrition — started out less than a decade ago taking fatty and oily food waste and turn- ing it into industrial products. But once it discovered it could produce animal feed additives from that waste, which is full of nutrients but often is discarded anyway, its busi- ness really took off. “The animal nutrition part has just eclipsed what we were doing originally,” said Scott Forster, the company’s co-owner and chief op- erating officer. When they started Magnus in 2007, Forster and partner Eric Lofquist bought a shuttered mar- garine plant, thinking they could use it to convert food waste into in- DAN SHINGLER dustrial lubricants and waxes. Magnus co-founder and chief operating officer Scott Forster (above) said he and They did, and it worked, but the partner Eric Lofquist “were just some crazy guys who started with one-hundredth company was using only a fraction of the plant operating.” of the plant’s capacity. The follow- ing year, Magnus began producing plant in 2007. Today, Forster said food so it can be used by humans. animal feed additives, and it soon he figures it would cost $250 million According to the EPA’s website, discovered that was where its real or more to build a similar facility “Food is now the #1 material sent to opportunities lay. from scratch. landfills and incinerators each Year. “We were just some crazy guys And his mix of customers and . . Food waste makes up almost 14 who started with one one-hun- products, both of which are diverse, percent of all the municipal solid dredth of the plant operating. … It’s line up well. For instance, Forster waste generated in the United incredible the way it’s evolved,” said some feed makers want a high- States.” Forster said. ly concentrated food, which they That amounts to more than $100 Now, eight years after it began can use in small quantities to sub- billion a year in wasted food, the life with six employees, more than stantially increase the nutrition of EPA reports, with food processing 75% of Magnus’ sales come from their own products. Others want serving as a major contributor. Still, animal feeds, which it primarily more bulk and volume. Magnus’ the agency says, less than 3% of produces for pigs, cows and chick- manufacturing process produces food scraps ever make it to any sort ens. both types of product, which is sold of recycling program. What’s not chicken feed is the in tiny pellets called “prills.” Many of the existing recycling ef- company’s sales, which hit $57 mil- “We’re in the right place. We’re in forts deal with sold food waste — lion in 2014, Forster said. the food business, in helping pro- not the oils and fat that Magnus Today, Magnus has 72 employ- duction animals. There’s not more takes in, which can’t be used to feed ees at its plant on 25 acres on Hardy space (to graze and feed animals), people. That’s another reason Road, which also is the namesake of there are more people. And people Forster says he thinks he’s in the the Hardy subsidiaries. (As it turns aren’t excited about (livestock pro- right niche. out, “Hardy” is also a good word, ducers) going to a non-natural al- ternative,” Forster said. “That’s the with a positive connotation, for Refining the process marketing products to feed makers, space I’m in.” but that was just luck, Forster said.) Forster said he’s also in the right The company is growing quickly Hungry for innovation place from a process standpoint. What you learn in a single day and Forster said he’s constantly The plant gets most of its water looking for new employees. He fig- Food waste has become a major from Lake Erie, treats it on site be- can change everything. ures he’s in the right place, at the issue with both environmentalists fore discharging it into the Grand WEATHERHEAD EXECUTIVE EDUCATION 2015 UPCOMING COURSES right time, serving the right indus- and governmental entities — both River, and also gets a good chunk of try, too. Magnus is in the middle of of which say it produces methane its natural gas from a Lake County SEPTEMBER 2-3 the country, able to serve cus- gas, causes burdens on sewage landfill that produces methane. Manager’s Toolkit for Delegation, Accountability and Results tomers in Texas, the Northeast or treatment systems, clogs landfills Magnus even has a bit of a lock SEPTEMBER 10 even along the West Coast, thanks and, of course, is just plain wasteful. on his supply chain. Companies Beyond Conflict Management; Transforming to the plant’s location near a Nor- From the city of San Diego to Con- that make human food send him Conversations and Relationships folk Southern rail line, which han- necticut, local governments have their waste in tanker trucks, and it’s SEPTEMBER 16 dles its shipments that go farther instituted programs to cut down on often black, greasy and messy — so than about 350 miles. waste. Beyond Conflict Management; Transforming no one else wants to take it and it Conversations and Relationships Magnus got a great start in life on At the federal level, the U.S. Envi- costs Magnus little to get. the cheap. ronmental Protection Agency sup- But Forster and his partner aren’t SEPTEMBER 30 Forster and Lofquist have a little ports converting food waste into resting on their laurels. The next Strategic Decision Making and Execution more than $35 million invested in animal feed and lists it as the one of step is to begin making food addi- the plant so far, in part because the top three ways to reduce food tives that can be certified as organ- Visit weatherhead.case.edu/executive-education or call 216.368.6413 to register. there were not a lot of buyers lining waste — behind only reducing pro- ic, but that will require a substantial up to buy a defunct fat processing duction and diverting still-usable additional investment, Forster said. 20150831-NEWS--9-NAT-CCI-CL_-- 8/27/2015 2:21 PM Page 1

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10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Keep trying Back in 1980, when Ohio Gov. John Kasich was a young state senator, he voted for an amendment that set a 15% target for Ohio agencies to buy goods and services from certified minority-owned businesses. It was 35 years in the making, but Ohio finally reached that laudable goal in budget year 2015. A re- cently released report showed state boards, commis- sions and cabinet agencies bought a record 19% of FROM THE PUBLISHER eligible goods and services through minority busi- ness enterprises in the fiscal year that ended June 30, according to the Associated Press. That’s an expendi- Make sure to notice pivot opportunities ture of $228.5 million. “By making this a priority, we are now able to help Lonnie Johnson, a nuclear and aero- crative detour. (Sales of his invention It’s going to be contentious. But I know space engineer, loved to tinker at home have topped $1 billion.) you’re my guy. I trust you,’” Ciano re- more small businesses from all backgrounds take while his wife and kids slept. It’s an important story. members. part in our state’s economic success,” Kasich said in One night in 1982, after his day job at Most of us are so good at planning our A tiny problem: Neither attorney had a statement. “That is reason to celebrate.” the Jet Propulsion Laboratory in Califor- businesses. We define a mission, perfect any experience in health care. Luis Cartagena agrees. As one of the leaders of the nia, he began testing nozzles for an inven- a product or service, craft a budget, target Instead of saying, “We can’t do it. Cleveland chapter of the Minority Business Develop- tion — a refrigeration heat a market and then go. That’s not us,” they decided to ask them- ment Agency, he has seen firsthand the obstacles pump — that he hoped could And as we go, we encounter selves, “How can we do it? Can it be us?” use water instead of Freon. some distracting ideas — a Today, health care law is a core part of many qualified minority-owned firms face when try- “I was machining some noz- strong water spray, for exam- Ciano’s practice. The firm also does work ing to compete with more established businesses. zles and experimenting at ple, or a new line of business or in areas the founders never imagined, in- In recent years, some of those challenges were ad- home and shot some streams a new technology. When that cluding business divorce and sports law. dressed. Outreach efforts helped to identify qualified of water into the sink,” Johnson happens, the temptation is to Each time, they were offered a detour. minority-owned businesses, the time-consuming told public radio last year. stay the course and tell our- They pivoted, and they succeeded. certification process was brought online and stream- “Then I turned and shot across selves, “We don’t do that. “The stars keep moving and shifting,” the bathroom where I was do- That’s not us.” Ciano says. “You keep working your butt lined, and the vast network of organizations that ing these experiments, and I JOHN But in business, the best off and then — boom — one opportunity work with minority-owned firms was tapped into. thought to myself, ‘Geez, this places are often off the map. leads to another.” “An undeniable fact is that diversity programs only would make a neat water CAMPANELLI And you get there by having The stories of “happy accidents” in work when you have a committed CEO leading the gun.’” the courage to sometimes de- business are sometimes held in awe, as if effort,” Cartagena said. “While this is true for corpo- Johnson was smart enough to not let viate from the plan. they are rare. Truth is, we are all present- the idea disappear down the drain, so to It’s worked for Cleveland attorney Phil ed with the “accidents.” It’s the ability to rations, I believe it translates to any government ad- speak. He stopped work on the heat Ciano. When he and partner Andrew recognize an opportunity, jump on it and ministration or agency. Hitting these goals became a pump and began building a prototype of Goldwasser launched Ciano & Goldwass- turn it into something “happy” that’s rare. priority for the administration of the state of Ohio, what would eventually become the Super er in 2000, they planned to focus their law Opening that part of the mind isn’t which in turn, heightened the commitment for sup- Soaker. Johnson could have easily mar- firm on high-end personal-injury class easy. But it’s crucial. Because if a com- plier diversity.” veled at that water spray, shook his head actions. petitor is somehow able to climb out of That commitment is a welcome development. Lev- … and then returned to his work on the Three months in, a close friend, a sur- the weeds, spot a detour and seize an in- pump. That’s what most of us would have geon, decided to switch hospitals and novation, well, then we’re in a battle for eling the playing field so that all businesses can com- done. Instead, he recognized an opportu- knew he’d need some legal help. our livelihood — armed with only a squirt pete fairly for public contracts is certainly worth cel- nity, pivoted and took a detour, a very lu- “He said, ‘I want to hire you to do this. gun. ebrating. But there can be no shortcuts to reaching that goal. Tax dollars need to be spent wisely. And an in- LETTERS TO THE EDITOR vestigation by The Columbus Dispatch recently raises A recent Crain’s write-up of Ohio’s job growth, show that Ohio has actually kets. About 300 employees work in Om- questions about whether hitting the goals became employment situation data stated that underperformed the U.S. in terms of job nova’s four Northeast Ohio facilities in such a priority that good fiscal sense was abandoned. Ohio’s labor market continues to out- growth. Over the last year Ohio has Akron and Mogadore, and at our world The paper found that the state used three minori- pace that of the nation. grown by 1.1% while the U.S. averaged headquarters in Beachwood. They create ty-owned businesses to act as middleman to buy Using the unemployment rate to show 2.1%. Ohio continues to make job gains cutting-edge products sold to over 90 software, potentially costing taxpayers up to the state is outperforming the U.S. is a and that is great for our state but our re- countries around the globe. Our exports $427,000 more than buying the software directly. particularly rosy read of the data. While covery has been exceedingly slow and, support economic growth and job cre- Ohio’s rate of 5% is less than the U.S. rate unfortunately, below average. ation in Northeast Ohio. Catherine Turcer, a policy analyst with the govern- of 5.3%, the difference is not one that ac- — Hannah Halbert We appreciate Sen. Rob Portman’s key ment-watchdog group Common Cause Ohio, told tually makes a difference. Policy Matters Ohio; Columbus role in ensuring that Omnova’s Ohio fa- the Dispatch the creation of a middleman doesn’t According to the Department of La- cilities continue to thrive by supporting make sense: “What we want in government spend- bor, Ohio’s unemployment rate is not For 100 years, Omnova Solutions and legislation reauthorizing Trade Promo- ing is for them to be sensible and as frugal as possi- statistically different than the U.S. rate. its predecessor companies have been tion Authority (TPA). Passage of TPA was ble.” (See, Table A, http://1.usa.gov/1fttU5M). producing industry-leading specialty critical, allowing the U.S. to negotiate Further, while the number of unem- chemicals and engineered surfaces. Our trade agreements that will level the inter- Ohio must create an environment where the 15% ployed Ohioans decreased over the products are key elements in a variety of national playing field by opening mar- goal can be met without such extreme and expensive month, as mentioned in the report, that goods, including high-performance kets overseas for companies like ours. measures. The state has made great progress, but decrease did not result in an increase in paints and primers, construction mate- Sen. Portman’s understanding of, and there’s still more work to do. the number counted as employed rials, hygiene products, oil and gas dedication to, Ohio manufacturers helps Given the success already achieved, we have confi- (-6,000). drilling fluids, hard case goods including more than 682,000 manufacturing work- dence Ohio can truly meet the 15% goal. And when it The drop in Ohio’s unemployment tables and cabinets, and automotive ers in the state, and millions of workers rate reflects a decline in the labor force seating, to name a few. across America. does, that will truly be an accomplishment worth (-16,000), not workers finding jobs. The functional performance of our — Kevin McMullen celebrating. Data from a separate survey of em- products and diverse customer base re- Chairman and Chief Executive ployers, the primary survey used to gage quire our ability to access global mar- Officer; Omnova Solutions 20150831-NEWS--11-NAT-CCI-CL_-- 8/27/2015 3:01 PM Page 1

AUGUST 31 - SEPTEMBER 6, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 CRAIN’S SUMMER IN THE CITY PHOTO CONTEST “Vibrant summer colors” — By Kevin Goodman We are proud to support Kevin Goodman was Home Team Celebration. on the RTA platform at Playhouse Square on Euclid Avenue when he took this photo. Goodman, of University Heights and Kelleys Island, is the managing director and partner at BlueBridge Every child deserves a forever home. Networks.

Summer in the City is a contest inviting people to share their Cleveland photos. Proud to Sponsor Northeast Ohio Adoption Services Weekly prizes include gift certificates to metro Cleve- To learn more, visit elkandelk.com/NOAS land venues, grocery stores and retailers at a value of $50 to $100. Three grand prizes will be awarded after Labor Day. Add images at crainscleveland.com/SITC. Walk Away Wealthy: The Entrepreneur’s Exit-Planning TALK ON THE WEB Playbook Re: Growth of Issues including banking are ex- The state needs to stop spending Debunk the misconceptions, steer actly why it’s worth watching the millions a year on catching, and clear of common mistakes and walk away with maximum wealth in this Green City Growers marijuana legalization experiences prosecuting people for unsubstan- essential guide to selling your business. Nobody has a better deal on lo- in other states. tial amounts of personal use mari- cally grown, long-lasting (two Legalization is still in the experi- juana, too. It’s ridiculous. “Walk Away Wealthy is loaded with weeks in the refrigerator!), great- mental stages, so let’s see what data If it fails in 2015, then what? Peo- practical ideas you can use to maximize tasting lettuce that requires NO is generated over the next 10 years ple have to wait longer for their the value of your business—to yourself rinsing and is nearly organic. or so through the existing experi- medicine? For how long? What as- and to the person you sell to.” The shelf life is a game-changer. ments. In the interim, there is data surance can any other group seek- Buy the family bag at their stand at that supports changing possession ing reform make that their solution —Brian Tracy, Author of Now, Build A Great Business the West Side Market — three of minor amounts to be akin to a will make the ballot in 2016? How heads for $4. parking ticket — including ensuring about 2017? 2018? “Launching a company without an exit — John M. McGovern that it does not have to be disclosed Look, I’ll be the first to admit that plan is like building a car with no brakes. in job applications — and allowing when I first read ResponsibleOhio’s Walk Away Wealthy is a must-read for anyone who is starting or has started Re: Legalizing pot judges to set low fines for those with ballot measure, I was firmly in the a business.” There is absolutely no doubt now low incomes. “No” category on this, but I that the majority of Americans want — Michele Adams changed my mind. I changed my —Marshall Goldsmith, Author of The New York Times and What Got You Here Won’t Get You There to completely legalize marijuana mind because I know that Ohioans nationwide. Our numbers grow on When ResponsibleOhio fails in can pass Issue 3 and continue to Download your FREE chapter from the book its bid to legalize marijuana in the take action against any negatives in a daily basis. now by visiting: www.walkawaywealthy.com The prohibitionist view on mari- state — and it will — Ohioans can the proposal while having legalized juana is the viewpoint of a minority try to do it again next year the right marijuana in the meantime. and rapidly shrinking percentage of way. — Circuitbomb Americans. You are going to need everyone It is based upon decades of lies onboard to get enough votes. When Re: Mark and propaganda. it is over, there will be only one Each and every tired old lie they group to blame for failure, one Shapiro’s future have propagated has been thor- group to blame for denying those I think a fresh start would be Tom Fox, SIOR oughly proven false by both science that need the medical aspect of the good for Shapiro, general manager tel 330 535 2661 www.naicummins.com and society. plant: ResponsibleOhio and its Chris Antonetti and the Indians. Cummins Their tired old rhetoric no longer greedy investors. What they’re doing just isn’t Commercial Real Estate Services, Worldwide. holds any validity. The vast majori- They alone created the wording working. Going to a team with a sig- ty of Americans have seen through that would create the monopoly. It nificantly bigger budget will prove the sham of marijuana prohibition was their choice. Not only will they once and for all if they are as talent- Industrial Sites on Falls Commerce Parkway in this day and age. The number of end up losing their investment, ed a management team as some prohibitionists left shrinks on a dai- they will be the bad guys. seem to think. And Tribe fans might ly basis. — rodb derive some hope from a direction With their credibility shattered, change by the organization. and their not so hidden agendas Issue 3 should be passed. Win-win-win! It’s time for these visible to a much wiser public, Look at the bigger picture. People guys to move on. what’s left for a marijuana prohibi- suffer on a daily basis; people who — 171841 tionist to do? could really use access to marijua- Maybe, just come to terms with na. People suffering from epilepsy Re: J.R. Smith’s the fact that marijuana legalization shouldn’t be denied access to med- nationwide is an inevitable reality icinal marijuana that can substan- hoverboard that’s approaching much sooner tially curb their seizures. People A lot of celebrities are riding than prohibitionists think, and suffering from diabetes, cancer, those. I do have to say it’s excellent there is nothing they can do to stop and other issues causing them dai- marketing, as these went viral pret- it! — Brian Kelly ly pain need this. ty fast. — MartinS Falls Commerce Pkwy. $60,000 Per Acre Cuyahoga Falls, OH 44224 3.56-7.93 Acres 3 Miles from Rt. 8 Fully-Graded, Level Sites YOU CAN WATCH US, TOO Tax Abatement Available Shovel-Ready Look for Crain’s Weekly Report webcast, which will hit your inbox Friday afternoon. To sign up, go to: crainscleveland.com/register. 20150831-NEWS--12-NAT-CCI-CL_-- 8/27/2015 1:39 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015

GOING PLACES Send information for Going Places to [email protected] Voice of FIG. 6-C Reason JOB CHANGES CONSULTING Hero ACRT INC.: Bryan Durr to business development manager, West region. Problem Solver FINANCE FIRST NATIONAL BANK: John F. Neumann to senior vice president, Durr Gandhi Sheldon Leonard commercial relationship manager. HEALTH CARE Leonard to associate. development director. AKRON GENERAL PARTNERS WELTMAN, WEINBERG & REIS CO. REAL ESTATE PHYSICIAN GROUP: Sachin LPA: Jeffrey Sobeck, Milos CRESCENDO COMMERCIAL REAL- Golf Gandhi, M.D., Matthew Martin, Gvozdenovic and Stefanie TY: Daniel Mayer to senior associate. Kempfer Collier to attorneys. Partner Tax Law D.C. and Philip Wilcox, M.D., to medical providers. STAFFING Expert MANUFACTURING WITT/KIEFFER: Morten Nielsen UNIVERSITY HOSPITALS COMMU- MOEN: Allan Gravely to senior to global managing director, Life NITY HOSPITALS: Donald S. director, brand communications. Sciences Practice. Sheldon, M.D., to regional president. Consultant RPM INTERNATIONAL INC.: Rob TECHNOLOGY UNIVERSITY HOSPITALS ELYRIA Antonelli to director of consolidation OECONNECTION: Marcus MEDICAL CENTER: Douglas systems; Ben Curtis to internal audit Helmbrecht to director, Sherlock, M.D., to medical provider, supervisor; Alecia Dailide to manag- infrastructure and operations. Who says you can’t be all things to all clients? obstetrics and gynecology. er, legal and secretarial services; You’re good: on the financial front and on the back nine. But sometimes Sanja Drobnjak and Cosmina Pop SHAKER: Derek Mracek to analyst, INSURANCE to senior internal auditors; Malorie research and development and client a client’s charitable giving issue is both urgent and complex. We can help. BRUNSWICK COS.: Adam Diamond Duff to senior financial analyst; insights teams. to director, client manager; Barbara We’re Akron Community Foundation, and we have all the charitable Tammy Kleckner to director, Kindel to manager, personal infrastructure support; Mark Rankin resources you need — cost free — before your 3:45 appointment. insurance; Tracy Ward to senior BOARDS to director of digital services; Rob From CRUTs to IRAs, we’ll keep you looking good in front of even account executive, commercial/risk Soisson to senior software developer. the most demanding client. So be a hero and call us. management; Karen January, NATIONAL WIRELESS SAFETY Sandy Kruger and Karmen Wade NONPROFIT ALLIANCE: Jocko Vermillion Your client — and the community — will thank you. to account executives. BURTON D. MORGAN FOUNDATION: (Safety Controls Technology) to TRANSGLOBAL ADJUSTING Treye Johnson to program officer. inaugural board of governors. PHILANTHROPY CORP.: Renee Hayashi and Kris CLEVELAND MUSEUM OF ART: FOR Fiander to claims adjusters. Michael Ferry to corporate THE BUSINESS SAVVY. AWARDS LEGAL relations consultant. Download our free guide at akroncf.org/hero. FISHERBROYLES LLP: Donato J. KOINONIA: Mike Farris to FIRST CHAIR: Jennifer M. Griveas maintenance technician. Or, call 330-436-5610. Borrillo, M.D., to partner. (Eliza Jennings) received the 2015 MARSHALL DENNEHEY WARNER MENLO PARK ACADEMY: Judith First Chair Top General Counsel COLEMAN & GOGGIN: Amelia J. E. Matsko to marketing and Award.

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July figures fall again Employment in Northeast Ohio slipped another tick in July, as the re- gion lost 3,495 jobs, or 0.3% of its to- tal, since June. But the July job count, in the latest Ahola Crain’s Employment (ACE) Report, is still 9,128 higher than it was in July 2014, a humble 0.8% gain. Cleveland Heights economist Jack Kleinhenz, who created the ACE model, believes the numbers suggest that em- ployment in the seven-county Cleveland- Akron metropolitan area has hit a tem- porary plateau, in part because of weak consumer spending. “It is unclear and somewhat perplex- TOP FIVE SIGNS YOUR EMPLOYEES MIGHT HAVE INFERIOR DENTAL COVERAGE: ing nationwide why, despite improving consumer fundamentals this year, a sustained pace of stronger spending consumer has not occurred,” Kleinhenz reported. “While demand has strength- ened for selected manufacturing indus- tries — auto and construction — it has been weak in general and more of the THEIR NETWORK INCLUDES ONLY TWO DENTISTS. same is expected as firms experience more competition in part due to the stronger dollar, the recent devaluation of the Chinese yuan, lower crude oil prices and sluggish global growth,” Kleinhenz said. The ACE Report is based on payroll CLEANINGS CAN ONLY BE SCHEDULED ON THE data from The Ahola Corp., a Brecksville LAST TUESDAY OF THE MONTH. payroll and human capital management firm, and by Kleinhenz’s analysis of other economic indicators, including construc- tion data and retail sales. By contrast, employment across the state and the nation has been rising, however modest- ONLY THE TOP FRONT TEETH ARE COVERED. ly. In July, the latest month available, em- ployment in Ohio was up 0.3% between June and July and up 1.1% over July 2014. In the United States, employment was up 0.1% for July over June and up 1.7% for the 12 months. PNC Financial Services Group, in its CAVITIES ARE NOT TREATED BECAUSE THEY ARE third quarter “Northeast Ohio Market CONSIDERED “CHARACTER BUILDING.” Outlook,” predicted that employment, and more broadly the regional econo- my, will continue to grow in an area that includes Cleveland, Akron, Canton and Youngstown. The pace of growth, though, will be less than the national economy because, PNC said, “contin- ued population loss will cause Northeast Ohio to be a below-average performer in terms of job growth.” PNC is forecasting 1.4% job growth for its Northeast Ohio region, compared with 1.7% job growth in 2016 for the United States. The financial services company saw several risks that might impact its Northeast Ohio forecast. “Downside risks to the regional econ- THEY DON’T HAVE DELTA DENTAL. omy’s outlook come from a weak global economy and a strong dollar that could hurt exports more so than expected,” PNC observed. At least one other benchmark supports continued employ- Give your employees access to two large networks of ment growth. Simply Hired, a Sunny- vale, Calif., company that operates job contracted dentists and award-winning customer service. search engines in 24 countries and 12 Learn more at deltadentaloh.com/dentaldonebetter. languages, earlier this month reported 54,691 job openings in the Cleveland- Akron region, a 1.8% increase over June. In line with other data, that’s mod- est growth when compared with the na- tional jobs opening, which saw an in- crease of 4%. The operations with the largest number of postings in Northeast Ohio, according to Simply Hired, were Cleveland Clinic Foundation, University Hospitals, Giant Eagle Inc., Akron Gener- al Hospital and PNC. — Jay Miller 20150831-NEWS--14-NAT-CCI-CL_-- 8/27/2015 3:41 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015 TAX LIENS The Internal Revenue Service filed tax Marengo Hyatt LLC Type: Employer’s withholding Savor SH Inc. Date filed: July 20, 2015 liens against the following businesses 401 Euclid Ave., Suite 135, Amount: $44,388 20630 John Carroll Blvd., Type: Employer’s withholding, in the Cuyahoga County Recorder’s Cleveland University Heights unemployment First Fruits Child Development Office. The IRS files a tax lien to Date filed: July 20, 2015 Date filed: July 11, 2015 Amount: $21,201 21877 Euclid Ave., Euclid protect the interests of the federal Type: Employer’s withholding Type: Employer’s withholding Date filed: July 11, 2015 Parma Pre-School Inc. government. The lien is a public Amount: $81,202 Amount: $34,234 Type: Employer’s withholding, 5280 Broadview Road, Parma notice to creditors that the Search Circus Inc. unemployment Cleveland Deli Co. Date filed: July 11, 2015 government has a claim against a 12181 State Road, North Royalton Amount: $43,063 12914 Broadway Ave., Type: Employer’s withholding, company’s property. Liens reported Date filed: July 11, 2015 Garfield Heights unemployment here are $5,000 and higher. Dates Type: Employer’s withholding, Shepherds Haven Date filed: July 11, 2015 Amount: $20,923 listed are the dates the documents unemployment Youth Prep Center Inc. Type: Employer’s withholding were filed in the Recorder’s Office. Amount: $78,392 17822 Euclid Ave., Cleveland Amount: $31,264 Anthony Group Inc. ID: 34-1945621 Dapper Dans Park Place Enterprises Ltd. Date filed: June 12, 2015 Save Local Now LLC 10703 W. Pleasant Valley Road, LIENS FILED 3690 Orange Place, Suite 111, Type: Failure to file complete return 25 S. Franklin St., Chagrin Falls Parma Beachwood Amount: $40,728 Date filed: July 20, 2015 Date filed: July 20, 2015 Date filed: July 11, 2015 Type: Employer’s withholding Type: Employer’s withholding, New Wave Trading LLC Type: Partnership withholding tax P A T Services 2000 LLC Amount: $29,519 unemployment 5500 Walworth Ave., Cleveland Amount: $73,955 24050 Commerce Park, Suite 100, Amount: $19,280 ID: 26-0532696 Beachwood Summit Plumbing & Date filed: June 9, 2015 E Oriani Landscape and Date filed: July 11, 2015 Mechanical LLC Packaging Machinery Type: Employer’s withholding Construction Inc. Type: Employer’s withholding 14572 Hartford Trail, Strongsville Services Inc. Amount: $280,423 919 Stevenson Road, Cleveland Amount: $40,176 Date filed: July 11, 2015 17877 St. Clair Ave., Cleveland Date filed: July 11, 2015 Type: Employer’s withholding, ID: 34-1187804 Pain Management Type: Employer’s withholding, Guarantee Product partnership income Date filed: June 9, 2015 of Northern Ohio failure to file complete return Specialties Inc. Amount: $28,696 Type: Employer’s withholding, 34055 Solon Road, Suite 101, Solon Amount: $62,633 21693 Drake Road, Strongsville unemployment, corporate income Date filed: July 11, 2015 Date filed: July 20, 2015 Crossroads REO Inc. Amount: $18,477 Type: Corporate income Konstanzer Masonry Inc. Type: Employer’s withholding 17149 Southpark Center, Amount: $150,388 514 Dover Center Road, Bay Village Amount: $39,168 Strongsville Rajendra K Mehta M.D. Inc. Date filed: July 6, 2015 Date filed: July 11, 2015 6701 Rockside Road, Suite 370, Metro Cleveland Security Inc. Type: Employer’s withholding City Auto Wrecking Inc. Type: Employer’s annual federal Independence 5627 Memphis Ave., Cleveland Amount: $59,362 7902 Bessemer Ave., Cleveland tax return Date filed: July 11, 2015 Date filed: July 11, 2015 Date filed: July 20, 2015 Amount: $27,210 Type: Employer’s withholding Type: Employer’s withholding Obon Inc. Martins Trucking Type: Corporate income Amount: $18,138 Amount: $136,171 14411 Caine Ave., Cleveland Amount: $36,716 Timeline Logistics Corp. Date filed: July 11, 2015 25838 Byron Drive, North Olmsted Aeroclay Inc. Close to Home Child Type: Employer’s withholding, Greenshare Partners Ltd. Date filed: July 11, 2015 5040 Corbin Drive, Development unemployment 4572 Renaissance Parkway, Type: Employer’s withholding Bedford Heights 4450 Cedar Ave., Cleveland Amount: $47,227 Suite A, Cleveland Amount: $25,334 Date filed: July 11, 2015 Date filed: July 11, 2015 Date filed: July 11, 2015 Type: Employer’s withholding, Type: Employer’s withholding, Inunison Ltd. Type: Employer’s withholding, Parma Fresh LLC unemployment unemployment 27899 Clemens Road, Westlake partnership income Local Tavern Amount: $17,688 Amount: $113,979 Date filed: July 11, 2015 Amount: $35,563 5513 Pearl Road, Parma See TAX LIENS, page 26 Get a Life!

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s the Cleveland Browns’ senior media broadcaster, versation, I think they’re second to none in that area.” Nathan Zegura seems to spend more time in front When the Browns agreed to a long-term partnership A of a microphone than a campaigning politician. with WEWS last November, it brought with it the addi- He hosts a two-hour daily radio show and separate tion of a pair of year-round Sunday shows — “Inside the coach’s programs that air on television and radio. Zegu- Cleveland Browns” and “Dawg Pound Report.” Coupled ra is also part of WEWS NewsChannel 5’s Browns with the station’s preseason broadcasts and the innov- pregame shows, is a co-host of “Dawg Pound Report” ative radio rights agreement that the Browns struck with MEDIA (one of the network’s new weekly programs), and ap- three Cleveland radio stations in 2013, it’s difficult to pears on the team’s website and on the scoreboard dur- find a day on the calendar that doesn’t include at least ing games at FirstEnergy Stadium. one official team program. “We have a lot of content,” said Kevin Griffin, who oversees all of it as the Browns’ vice president of fan ex- perience and marketing. ‘Good for both parties’ There’s so much, in fact, that Vic Carucci, a former Steve Weinstein began his duties as WEWS’ vice pres- host of “Cleveland Browns Daily,” the in-house radio ident and general manager on Jan. 12 — almost two BLITZ show that expanded from one to two hours with the ad- months after the Browns announced they had agreed to dition of Zegura in July 2013, said the team’s all-encom- a “long-term” partnership with the local ABC affiliate. passing media model is one other NFL clubs are at- The deal has given the network an hour of program- Browns programming is tempting to emulate. ming during what Weinstein described as a longtime “All they’ve done is gone on to add more program- “bastion of infomercials” — the 11 a.m. to noon time everywhere, and a lot of it ming,” said Carucci, who was hired by the Randy Lern- slot on Sundays. The first of the two shows, “Inside the er regime in 2011 and left for The Buffalo News in Sep- Cleveland Browns,” is produced and shot at the team’s tember 2014. “I think the Browns have excelled at this. headquarters in Berea. “Dawg Pound Report” is a includes team branding “The on-field part has been a perpetual struggle,” Browns and WEWS co-production that airs from the Carucci continued. “But the off-field stuff, the digital latter’s studios on Euclid Avenue. WEWS’ contract also By KEVIN KLEPS media and stuff that helps generate revenue and con- See BLITZ, page 20 20150831-NEWS--16-NAT-CCI-CL_-- 8/27/2015 3:52 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015 Complimentary In-flight Wi-Fi More perks are on tap

AIR CHARTER SERVICE Cavs are expanding partnership with Cleveland tech startup AIRCRAFT MANAGEMENT By KEVIN KLEPS [email protected]

Mike Jacobs said one of the first things he noticed when he walked in the Cleveland Cavaliers’ employ- ee entrance at Quicken Loans Are- na is one of team owner Dan Gilbert’s “-isms.” “Yes before no,” is among the ideals given to team members at Gilbert’s family of companies. For Tap.in2 co-founders Jacobs and Jordan Syms, the Cavs saying Northern Ohio’s Premier Air Charter Service yes to their technology — which al- lows fans to order food, drinks, Serving the area with 10 Jets merchandise and in-venue experi- • 24-HOUR JET CARD NOW AVAILABLE • ences from their mobile devices — has eliminated “no” from a lot of their ensuing conversations. www.FlySkyQuest.com • 216-362-9904 “We’ve gotten in front of a large [email protected] amount of people before,” said Syms of the Cleveland-based com- pany, which received a significant boost from Jacobs being a graduate of Bizdom, the startup accelerator founded by Gilbert. “The biggest issue we faced is people don’t like being guinea pigs,” Syms continued. “They want to see how it works.” During a 22-game trial run with the Cavs last season, the team be- came big believers in the technolo- gy. Fans in the lower bowl received their orders in an average of fewer than six minutes, and the technolo- gy was used by 25% of the 5,000 po- tential customers to whom the “Cavs Eats” function was available, Tap.in2 said. The company said 80% of the or- ders were beverages, and cus- tomers spent an average of $32 per game and placed 1½ orders per Crunch Time! contest. “What we found last year was that the food and beverage items, a lot of that can move quickly,” said Mike Conley, the Cavs’ vice presi- dent of digital. “It really came down to work flow.” At some point this season, which will begin in two months with the Cavs as Las Vegas’ choice to win the championship, the team hopes to make Tap.in2’s technology avail- able to each of the 20,562 seats at The Q. had the opportunity to eat and time concessionaire. It’s yet another technological drink without leaving their seats. The Philadelphia-based compa- push for an organization that seems The Cavs will again make the mo- ny — which claims to serve more to enjoy new toys every bit as much bile ordering system available to than 100 million people annually as it does pregame hype videos. about 5,000 seats to begin the 2015- via its many partnerships with sta- 16 season, Conley said. diums, arenas and theaters — is But the goal is to broaden it to the showcasing Tap.in2’s technology to SET THE ‘Cool stuff’ on way entire arena later in the campaign. the pro sports teams with which it There was a considerable chal- This year, fans who launch the does business, Syms said. lenge when it came to implement- Cavs Eats option from the team’s As a result, Syms — who be- BAR HIGHER. ing Tap.in2’s mobile ordering sys- app will also have the chance to or- friended Jacobs when they became tem in 2015, and it had nothing to der merchandise and bid on such unwitting roommates at the Uni- WEATHERHEAD EXECUTIVE MBA PROGRAM do with the 3-year-old company’s experiences as participating in a versity of California, Berkeley in the technology. high-five tunnel with the players or early 2000s (“We wanted single “The big hurdle to overcome is getting to watch a postgame news rooms,” Syms said. “They put us in Designed for working executives, this program is we have a 22-year-old building, and conference. a triple”) — said Tap.in2 will soon that building was built with 22 years All money raised from the fan ex- announce partnerships with sever- delivered by internationally renowned faculty who ago in mind,” Conley said. periences will go to the Cavaliers al NFL, NBA and NHL teams in the have pioneered the advancement of leadership on “The way the kitchens were posi- Youth Fund, Conley said. There is a coming months. A deal with four levels: self, team, organization and society. tioned, they really weren’t meant to $3.50 delivery fee, which Conley NASCAR could also be complete by offer delivery to every seat in the said goes to Tap.in2, for fans who year’s end. Make our difference your advantage with an arena.” order food, drinks and gear from “Game over game, we have a very Executive MBA from Weatherhead. Rather than roll out the Cavs Eats their seats. The Cavs also are ex- high repeat customer rate,” Jacobs program to every seat at The Q, the ploring ways to get corporate part- said. APPLY TODAY AT WEATHERHEAD.CASE.EDU/EMBA team quietly tested the technology ners involved, which could reduce That, along with a huge push with a limited amount of season- or eliminate the delivery fee on cer- from the Cavs, is why the co- ticket holders in the lower bowl and tain occasions. founders believe the sky-high aspi- VIP sections last season. Tap.in2, which has raised rations they discussed in college are By the time the Cavs were playing $550,000 in a $1.5 million round of on the verge of becoming a reality. the Golden State Warriors in the equity funding, has another big “There’s some really cool stuff NBA Finals, a quarter of the arena backer in Aramark, the Cavs’ long- happening,” Syms said. 20150831-NEWS--17-NAT-CCI-CL_-- 8/27/2015 3:36 PM Page 1

AUGUST 31 - SEPTEMBER 6, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Cavs tracking ahead of the competition The Cleveland Cavaliers took their use of court projection technology to a new level last season by imple- menting a tracking component for a few games at Quicken Loans Arena. The features allow the Cavs to dis- play the court as a 94-foot-wide screen, with select fans as the pawns in an amusing video game. It turns out, the team liked Quince Imaging’s tracking technology so much they bought it. The Cavs already were one of three NBA teams — the Atlanta CONTRIBUTED PHOTO Hawks and Philadelphia 76ers are The Cleveland Cavaliers debuted the tracking component of Quince Imaging’s court projection technology for a Feb. 11 game. the others — to own Herndon, Va.- based Quince’s court projection technology. The system, which requires a sev- en-figure investment to own, turns the court into a 3-D screen that is used for player introductions and other festivities. Now, the Cavs, according to Quince Imaging chief operating offi- cer and co-founder Scott Williams, Cuyahoga Community College Foundation are the first professional sports fran- chise to go all in on the real-time tracking component. “They’re very progressive when it comes to trying to use this technolo- gy in new and exciting ways,” in partnership with Williams said of the Cavs. The Cavs utilized the tracking component during a few breaks be- invites you to attend the tween quarters last season, said Tra- cy Marek, the organization’s chief marketing officer. 2015 PRESIDENTIAL SCHOLARSHIP LUNCHEON During the Feb. 11 debut of the court tracking technology, two fans went head-to-head in an effort to collect more coins in a virtual arcade Benefiting Scholarships for Tri-C Students game. (The amusing video is available at vimeo.com/119349057.) “It was a lot of fun to watch, but even more fun to play with,” Marek said of the tracking component. This season, the Cavs will employ the technology more often, Marek said, but not so frequently that it “gets repetitious.” Quince’s tracking system is most commonly used in major theater productions, Marek said. For the Cavs, there is one difficul- ty in being ahead of the tech game among sports teams. “We’re really the first to do it, so we don’t have a lot of people to look at for other examples of how it can be done,” Marek said. One likely new twist this season: - - One tracking option allows teams to KEYNOTE SPEAKER have fans play a video game version of basketball, with the system telling the players — whose movements are Earvin “Magic” Johnson lit up for everyone to see — where to run on the court. THURSDAY, OCTOBER 8, 2015 “It’s literally endless,” Marek said of the Quince system’s possibilities. 11:25 A.M. – 1:05 P.M. — Kevin Kleps RENAISSANCE CLEVELAND HOTEL

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DAILY E-NEWSLETTERS: CrainsCleveland.com/register TWITTER: @CrainsCleveland FACEBOOK: Facebook.com/CrainsCleveland LINKEDIN: linkedin.com/company/ For ticket and table information, please call the Cuyahoga Community College Foundation crain’s-cleveland-business at 216-987-4868 or visit www.tri-c.edu/donate to purchase tickets. INSTAGRAM: instagram.com/crainscleveland 15-0328 20150831-NEWS--18-NAT-CCI-CL_-- 8/27/2015 2:26 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015 HIGHEST PAID PROFESSIONAL ATHLETES CCCCC

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AUGUST 31 - SEPTEMBER 6, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 MAC getting popular catchphrase more exposure By KEVIN KLEPS State and Michigan. During the 2014 time ever in college athletics when produce ESPN3 broadcasts for all think about this conference,” Stein- [email protected] fall semester, which featured a na- everybody said they were flush men’s and women’s basketball brecher said. “By that, I mean tional championship by Ohio State’s (with cash). As a league, we’re grow- games that aren’t scheduled to air (about) our member institutions. MACtion — the Mid-American football team, the Buckeyes’ athletic ing our revenues.” on another platform, and they will Again, it’s not just a football thing.” Conference slogan that has taken on department racked up $69.3 million The ESPN deal, and the exposure pick and choose any other sports Quinn, 160over90’s creative di- a life of its own on social media the in revenue. That’s almost triple the it generates, is a big part of that. and games they want to showcase. rector, mentioned the MAC’s “tradi- last few years — is difficult to miss average size of a MAC university’s In addition to the college football Wrapping up such details has all tion of punching over its weight.” during the college football season. athletic budget. games that are a staple of the ESPN2 been part of what Steinbrecher calls He didn’t refer to the conference But what is it, aside from a cool Complicating matters is the cost and ESPNU broadcast schedules a “really hectic summer” — one that as a midmajor. Instead, he lauded its hashtag on Twitter? MACtion “goes of attendance, a stipend for stu- during the fall (particularly on Tues- “beats the alternative.” willingness to think outside athletics. beyond football,” said Jon Steinbrech- dent-athletes that many NCAA Di- day and Wednesday nights in No- Part of that time has been dedi- “They’ve been willing to try some er, the Cleveland-based conference’s vision I conferences, including the vember), Steinbrecher said nine of cated to the new microsite, which things that are a little different than commissioner since 2009. “But we’ve MAC, are implementing in 2015-16. the conference’s 12 full-time mem- debuted during the MAC’s football what you might expect from a col- never really formally defined it.” Steinbrecher said the measure will bers are ready to produce their own media day on July 29 at Ford Field lege marketing perspective,” Quinn With the help of 160over90, a be adding between $400,000 and live broadcasts in 2015. That’s triple in Detroit. The website is covered said of the MAC. Philadelphia-based brand agency, $800,000 to each conference mem- the 2014-15 total, and the commis- with splashy graphics, but the con- Still, the slogan remains at the the slogan now has a microsite — ber’s budget this year. sioner said all 12 schools are expect- ference’s leader has a much simpler center of it all. www.getsomemaction.com — and, “Yeah, it’s a time when money’s ed to be ready by 2016, which is a goal for the “multiyear” branding “You can go anywhere in the after a year of work, a clear identity, tight. But it’s always tight,” Stein- year ahead of schedule. effort with 160over90. country and say MACtion, and peo- according to its commissioner. brecher said. “I don’t remember a Each of the nine institutions will “I hope it enhances what people ple get it,” Steinbrecher said. “MACtion is a comprehensive thing,” Steinbrecher said. “It encom- passes all 23 sports, it encompasses all 12 institutions, it’s about exciting play on the field, it’s about achieve- ment in the classroom, and it’s Adam Sells The Most Expensive about social awareness and commu- nity involvement.” The new website, which Stein- Homes in Cleveland! brecher describes as a collaboration between 160over90 and the confer- ence, attempts to combine all of that SOLD into a portal that doesn’t feature scores and standings. (Those remain on the recently redesigned mac- sports.com.) Brendan Quinn, 160over90’s cre- ative director, said the agency want- ed to “showcase some different ele- ments of the MAC” with getsomemaction.com. There’s a 60-second PSA empha- sizing that “MACtion speaks louder than words,” stories on notable alum- ni who have achieved success away Hunting Valley $5,950,000 Avon Lake $5,900,000 Gates Mills--$2,950,000 from the fields and courts, and a One of the most remarkable and truly spec- Beyond comparison, this one of a kind Tony Truly a spectacular and grand home sited on a “MACTALK Generator” that produces memes, along with opportunities for tacular estates in Northeast Ohio located in Paskevich home is truly breathtaking! Sited magnificent lot with extraordinary landscaping smack talk between rival schools. the heart of Hunting Valley with breathtaking on the most spectacular almost 2 acre parcel and breathtaking vistas! Built with the finest of “We wanted to show the MAC is views and Chagrin River frontage! with extraordinary views of Lake Erie and everything, this home spans over 14,000 sq. successful on the field, yes, but it goes beyond that,” Quinn said. Downtown Cleveland! ft. and offers every possible luxury! “There’s the life after college and the pride in the schools themselves.” ‘Tight’ times The MAC — which is known for such achievements as an Orange Bowl berth by Northern Illinois, the Univer- sity of Akron’s national championship in men’s soccer and memorable Sweet 16 runs by several of its men’s basket- ball programs — is a lot of things. But there is one description of which Steinbrecher isn’t particularly fond. “I won’t call us a midmajor,” he said. Asked if he didn’t like that term, the commissioner said, “I really don’t. We’re an FBS conference. I Bainbridge $2,695,000 Gates Mills $1,950,000 Novelty $650,000 don’t think we’re a midmajor.” 2012 Custom House of the year!Absolutely A truly magnificent in-town estate encom- Absolutely spectacular custom designed Being part of the Football Bowl remarkable custom built Tuscan inspired passing 14 breathtaking acres with sweeping manor home built by Marc Chapic! Stone & Subdivision has its perks — includ- ing a 13-year rights agreement Stein- masterpiece sited on a double lot in Stoner- views offering total privacy and amenities cedar transitional features exceptional mill- brecher struck with ESPN just before idge with unobstructed lake views! second to none! work and is sited on 3+ acres on a wooded lot! kickoff of the 2014 football season. The deal reportedly increased the MAC’s annual TV haul from $1 mil- lion to about $8 million, and it was announced 11 months before The Hollywood Reporter said Disney is When buying or selling your home. forcing ESPN to trim $100 million Check out all of and $250 million, respectively, from its 2016 and 2017 budgets. Just ASK “We thought then and think even Adam’s listings at more so now in light of what people Adam S. Kaufman have been reading of late that the www.justaskadam.com time was right to try and rework our 216.831.7370 deal and get an extension (with ESPN),” said Steinbrecher, who Company Top Producer 2002-2014 agreed to an extension of his own in June (a three-year deal with the MAC #1 State of Ohio that runs through 2020). And while the commissioner isn’t a 3550 Lander Road fan of the midmajor label, there is no denying that the MAC is on a different Pepper Pike, OH 44124 playing field than the likes of Ohio 20150831-NEWS--20-NAT-CCI-CL_-- 8/27/2015 2:59 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015

sion,” Weinstein said. “I hope for the Weinstein said he’s “comfortable” tenure as the team’s senior editor. Carucci said the original deal with staff it’s a build of morale. The with Baskin and others sporting the He said he was assured he “would WKNR, which didn’t include game BLITZ Browns are huge for Cleveland. I orange and brown, but he insists the be given a lot of leeway” to discuss rights, “was considered a best-prac- think it’s been a real boost to the partnership doesn’t preclude the the team when “Cleveland Browns tice model that a lot of teams in- continued from page 15 television station.” station from doing its job. Daily” launched as a one-hour quired about.” The deals team pres- allows it to air any preseason game Weinstein said WEWS pays for the “I’m a former news director,” We- weeknight program on WKNR-AM, ident Alec Scheiner later struck with that isn’t being shown by a national cost of producing the preseason instein said. “Ethics and journalism 850 in 2011. When Jimmy Haslam ESPN Cleveland, The Fan and network, plus a 60-minute pregame games, and it shares some of the ad- are very important to us. Both sides purchased the team the following WNCX-FM, 98.5, are viewed in NFL block that was watched by 123,000 vertising dollars with the Browns. have talked to each other about this, year, Carucci said the message re- circles as “really favorable to the households prior to the Aug. 13 pre- “The way we’re splitting the rev- and at no time are they going to pre- mained the same — only there was Browns, by all accounts,” Carucci season opener against the Washing- enue, I believe it’s good for both par- vent us from doing any stories we soon a lot more time to fill. said. ton Redskins. ties,” he said. “I can’t get into num- want to do.” In 2013, the Browns struck a When told of Carucci’s comment, The game broadcast that night bers, but it’s certainly a tremendous Griffin, a former journalism major unique radio rights deal, one that ESPN Cleveland general manager generated a 22.6 rating, the best for a generator of revenue during time at Ohio State, echoed those brought the team’s all-sports talk Keith Williams said parent company Browns preseason contest since periods when we wouldn’t normally thoughts. stations (WKNR and WKRK-FM, Good Karma Brands is “really excit- 2011, and was watched by more than produce a lot of revenue.” Regarding the attire, the Browns 92.3) together. Zegura, a former CBS ed if the relationship is viewed that 450,000 households in the Cleveland For Weinstein, who got his start in VP said, “We prefer them to be in Sports fantasy football analyst, was way around the league, as we set out designated market. Nearly 37% of the business as an Emmy Award- our gear if they’re not in a suit and added, and “Cleveland Browns Dai- to create the best deal any team had the households in the region tuned winning news photographer, the tie.” ly” increased to two hours per day. in the league. in for at least some of the preseason deal with the Browns has meant The Browns also built a state-of-the- “We want all of our partners, in- opener. WEWS staffers such as sports direc- Imagine if they’re good art studio (one Carucci believes cost cluding advertising partners, to view “It’s not that I’m making a huge tor Andy Baskin appearing on cam- about $65,000) that resides near the us as a valuable part of their team sports push, but this is a way to gen- era wearing polo shirts that include Carucci also wore his share of offices of prominent team execu- who is assisting the growth of their erate revenue for some live televi- Browns colors and a team logo. Browns gear during his three-year tives. organization,” Williams said. “The Cleveland Browns have exceeded our expectations as a partner, and nothing would make us more proud than for this partnership to be viewed as a gold standard by the Browns and other teams in the NFL.” Prior to leaving the Browns early CLASS OF 2015 in the 2014 season for a job as a Buf- falo Bills beat writer for The Buffalo News, Carucci said he had signed an extension with the Browns and was “looking forward to staying on an- Tom Arnold, Western Reserve Academy other few years.” Steven Burger He had spent 17 years at the news- , Employers Health Co. paper before joining NFL.com in Marty Butler, Exact Care Pharmacy 1999, and he called the offer to come back “extraordinary” and “out of the Jennifer Demmerle, Northeast Ohio Regional Sewer District blue.” It allowed him to return to the Buffalo-area home he never sold af- Sharon A. Dumas, City of Cleveland ter joining the Browns. (At the time of Carucci’s departure, his wife, Phil Fracassa, The Timken Company Rhonda, was spending most of her time in New York as the primary day- CFO OF THE YEAR William B. Furr, Key Community Bank time caregiver for the couple’s first PRESENTED BY John Graves grandchild, Emma.) , Girl Scouts of Northeast Ohio Carucci admits fans and media Robert Gudbranson outlets initially “were skeptical” that , Invacare “Cleveland Browns Daily” would tell Beth Hall, Affinity Advisory Network it like is, rather than give the Browns’ rose-colored view of the organiza- Dave Hegeman, Millcraft Paper Co. tion. CO-PRESENTED BY “As time went on, that shifted” he Kevin Herendeen, Fathom said, “and people started to realize this wasn’t a typical team-run Christopher Holding, Timken Steel show.” Carucci’s former “Cleveland David Holvey, The Stein Companies NETWORKING / COCKTAIL SPONSOR Browns Daily” co-host, Zegura, said Kevin Krencisz he was also told by team manage- , Cleveland Sight Center ment that he didn’t have to serve as Bill Mann a “rah-rah” voice of the organiza- , Joseph, Mann & Creed tion. Chris Nagel, Fairmount Santrol “One of the things that is really important to me is I look at this job VIDEO SPONSOR Bob O’Brien, Forest City Enterprises as being able to connect the fans to the team in a way that a traditional Bill Reniff, Baldwin Wallace University journalist wouldn’t because of the access that I have,” Zegura said. Craig Richmond, MetroHealth System He said he’s “earned a lot of trust in the building,” and has a keen un- TRANSPORTATION PARTNER Marc Rubinstein, The Free Medical Clinic of Greater Cleveland derstanding of “what information is Eric Rychel publicly consumable.” , Aleris That, Carucci said, is part of the Rob Tonkinson, Mercy Health “fine line” any team that also serves COMMUNITY PARTNER as a media producer must walk. Barbara Welker, LifeBanc Some information is meant to stay in-house, some news is broken by Brad Zucker, Ancora Advisors the club (the announcement of Bri- an Hoyer as the starting quarterback last year, for example) and a lot of the discussions are left to the many SUPPORTED BY media outlets that cover the team. AWARDS & NETWORKING RECEPTION And that’s the thing with the Browns: Despite the losing, there’s October 22, 2015 • 5:30-8:30pm always chatter. Only now, a lot of it — about 1,000 hours annually — carries with it official team branding. IN PARTNERSHIP WITH Global Center for Health Innovation • Cleveland Convention Center “It’s almost insatiable,” Zegura said of fans’ appetite for team-relat- CrainsCleveland.com/CFO ed content. “And think about it: It’s that way, and they haven’t won. When this team starts winning, it’s going to be unlike anything I think in the NFL.” 20150831-NEWS--21-NAT-CCI-CL_-- 8/27/2015 2:28 PM Page 1 Which one should speak at FUEL: Cleveland?

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22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015 INDIANS continued from page 1 money, combined with the cash Shapiro said the magazine is “tak- Nick Swisher, Michael Bourn, Brett and wealth of population. from the national TV deal, might, ing an educated guess with part of Myers and Mark Reynolds. Each 700 W. St. Clair Ave., Suite 310 Cleveland, OH 44113-1230 “So it’s no one’s fault,” Shapiro depending on how the broadcast the information, and they’re going signing turned out to be regret- Phone: (216) 522-1383, Fax: (216) 694-4264 added. “It’s not bad fans. We have dollars shake out, not equal the to be partially right. table, which Badenhausen said www.crainscleveland.com Publisher: Events coordinator: Kim great fans. We proportionally have Tribe’s annual payroll. “In our case,” Shapiro added, winds up being “a killer” for MLB John Campanelli Hill ([email protected]) among the best fans in all of profes- Prior to a series of trades before “the case of the Padres, they’re not teams in smaller markets. ([email protected]) Marketing strategist: Editor: Michelle Sustar sional baseball, but recognize the the July 31 deadline, the Tribe’s right. They don’t have it right. They “The Yankees and Dodgers can Elizabeth McIntyre ([email protected]) numbers that we’re looking at.” payroll had hovered in the $85 mil- don’t have all the information and absorb that as just a cost of doing ([email protected]) Advertising director: lion to $88 million range for the last they’re trying to piece it together. business,” he said. “The Indians Managing editor: Nicole Mastrangelo Scott Suttell ([email protected]) two seasons, and the club’s player That’s the simplest answer to that. don’t have that (luxury).” ([email protected]) Senior account ‘Net loss’ for Tribe? Sections editor: Amy expenses are significantly higher I think most people actually under- The Dolans’ penchant of spend- executive: Ann Stoessel Dawn Donegan A number that Shapiro has often when signing bonuses and salaries stand that.” ing what they make, and not will- ([email protected]) ([email protected]) Associate Editor/ cited in reference to the Indians’ at- paid to prospects are factored in. One of the reasons teams often ingly absorbing the “huge losses” Akron: Sue Walton Account executives: Lindsie Bowman tendance decline is Cleveland’s So is it possible the Indians real- dispute Forbes’ calculations, ac- Shapiro said would result from ma- ([email protected]) Asst. editor: Kevin Kleps ([email protected]) downtown population, though in- ly are losing money? cording to sources, is the EBITDA jor jumps in payroll, has a lot of ([email protected]) Sports John Banks creasing to a record level (it now ex- “It’s very conceivable that the In- numbers aren’t a true indication of frustrated Tribe fans calling for Senior reporter: ([email protected]) Stan Bullard Laura Kulber Mintz ceeds 13,000 and is projected to rise dians could have had a net loss in a club’s cash position, because the them to sell the team. ([email protected]) ([email protected]) to 23,000 by 2020, according to the 2014,” Forbes senior editor Kurt magazine doesn’t take into account Badenhausen said that doesn’t Real estate and construction Office coordinator: Reporters: Denise Donaldson Downtown Cleveland Alliance), still Badenhausen said. “Baseball is very such major expenses as capital re- always produce the desired results. Jay Miller ([email protected]) pales in comparison to most major- healthy, but if you look at the Indi- pairs and debt payments. “When a guy puts down $600 ([email protected]) Web editor: Damon Government Sims ([email protected]) league cities. Two other factors ans over the last couple years, their “There are expenses that are not million in equity to buy the team, Chuck Soder Digital strategy Shapiro mentions are the drop in profits have been among the lowest factored into our profit number,” you never know how much they ([email protected]) director: Nancy Hanus Technology ([email protected]) Fortune 500 companies in North- Dan Shingler in baseball if you exclude the teams said Badenhausen, Forbes’ senior would then invest in the team,” the Audience ([email protected]) east Ohio, and how Greater Cleve- that have gone really crazy with editor. “There’s no denying the In- Forbes senior editor said. “Buying Energy, steel and auto development director: land’s population stacks up with their payrolls.” dians have certainly struggled.” into a major sports franchise right Tim Magaw Eric Cedo ([email protected]) ([email protected]) the other cities that have at least Since starting at Forbes in 1998, now is an expensive proposition. Health care and education Production director: three major professional sports Badenhausen has focused a lot of Some new owners like the Dodgers Rachel McCafferty Craig L. Mackey ‘A good time to be an owner’ ([email protected]) ([email protected]) teams. his efforts on the magazine’s annu- go berserk (with spending), and Manufacturing and energy Production asst/video A stat that jumps out to anyone al franchise evaluations. Those, he One very large caveat in all this is some are obviously more cau- Jeremy Nobile editor: Steven Bennett who follows baseball is the eight- ([email protected]) ([email protected]) admits, have “gotten some grief that while it’s easy to debate profits tious.” Finance Billing: Lana Semaan, year broadcast contract MLB over the years” from teams that say and losses in pro sports, there is no Shapiro — who isn’t comment- Research editor: 313-446-6091 Deborah W. Hillyer agreed to with Fox, ESPN and TBS the numbers aren’t accurate. denying that franchise values have ing on reports that he is being re- ([email protected] ) ([email protected]) Credit: Todd Masura, — one that is worth a combined Forbes estimated that the Indians gone through the roof. cruited by a club, the Blue Jays, that Cartoonist/illustrator: 313-446-6097 Rich Williams th ([email protected]) $1.55 billion per year until 2021. Di- had an operating income — which In March, Forbes valued the Indi- significantly added to their 10 - Art director: Customer service/ vided by baseball’s 30 clubs, that it defines as earnings before inter- ans at $825 million, a 45% jump ranked payroll with a pair of major Rebecca R. Markovitz ([email protected]) subscriptions would amount to about $51.7 mil- est, taxes, depreciation and amorti- from 2014. trades before the deadline — be- Events manager: 877-824-9373 lion annually — but it’s not that zation — of $8.9 million in 2014. The estimated worth is the sixth- Jessica Rasmussen Reprints: Krista Bora, lieves the Dolans get a bad rap. And ([email protected]) 212-210-0750 simple, according to an industry The year before, the Tribe’s operat- lowest in MLB, but is $502 million he says their value goes way beyond source. ing income, according to the mag- above the price the Dolans paid for what you see in the standings and Crain Communications Inc. After licensing and other expens- azine, was in the red, at a loss of the team. payroll rankings. Keith E. Crain: Chairman Rance Crain: President es are deducted from the top, teams $1.9 million. “It’s a good time to be an owner,” “I think they are people who care Mary Kay Crain: Treasurer receive a “significantly lower” But in 2012 and 2013, Forbes pro- Badenhausen said. William A. Morrow: Executive vice president/operations deeply about the community, Chris Crain: Executive VP, dir. of strategic operations amount, the source said. jected the Tribe’s operating income The Dolans also received a re- which is not always the case in pro- KC Crain: Executive VP, director of corporate operations Dave Kamis: Vice president/production and manufacturing The Indians get a reported $40 at a combined $53.1 million, in- ported $230 million from Fox fessional sports,” Shapiro said. Anthony DiPonio: Chief information officer million in rights fees from Fox cluding an MLB-high $30.2 million Sports for the December 2012 sale Thomas Stevens: Chief financial officer “They want to win badly, but also Mary Kramer: Group publisher Sports Ohio, and Forbes estimates in 2012. of SportsTime Ohio. That offsea- just want what’s best for the city of Asked about Forbes’ estimates by son, the Indians spent a combined G.D. Crain Jr. Founder (1885-1973) they bring in more than $20 million Cleveland and the region of North- Mrs. G.D. Crain Jr. Chairman (1911-1996) annually in revenue sharing. That Fox Sports Ohio after that season, $117 million on four free agents — east Ohio.”

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continued from page 1 Some of the spending will be big can’t simply expand their business What’s in a Name? be able to recommend to clients and bold. by putting up additional signs. who want to reach convention go- Just getting a name on a sign will That means that heavy demand Everything! ers. be a big part of the marketing push will be met by substantial price in- “You’re going to see a lot of — just an image that establishes a creases instead of an increase in brands taking over specific spaces,” presence in a consumer’s mind. the supply of signs. said Jim Ganzer, Adcom’s director Orange Barrel Media, a Colum- Yale said he expects the rates for of media strategy, thinking about bus firm that specializes in large- July to be at a premium. the impact the MSNBC cable net- scale, one-of-a-kind outdoor dis- Scantland said he would expect work had with its temporary studio plays, put signage atop or on the costs to be double or greater than on East Fourth Street during the sides of buildings for earlier con- normal charges. recent debate. ventions in Denver and Charlotte, “I also would anticipate there is N.C. Looking at the big picture going to be a number of (cell Among its signs in Northeast phone) charging stations and oth- Ohio are the four-story sign on the The week is not likely to be a big er unique marketing executions west side of the Stark Enterprises moneymaker for the television sta- that are also functional.” headquarters in the Warehouse tions, which usually suck up a lot It’s still early, and 2016 market- District and at Crocker Park. of spending by marketers. ing budgets are not yet set. But “What kind of spending will Your name is what you stand for – your marketing strategists are thinking there be during the convention?” reputation, your integrity and history. about tactics to help businesses “What kind of spending will asked Dominic Mancuso, general make those decisions. there be during the manager of WOIO-TV, Channel 19, The Middlefield Banking Company has been offering strength A key focus will be on signage, convention? We’ve never and WUAB-TV, Channel 43. and progress to local communities since 1901. Whether it’s which, because of zoning laws, will had a convention here so “We’ve never had a convention checking, saving, lending or investing, we are your partners in all be in limited supply. here so we have nothing to go by.” matters financial. UH spokeswoman Alicia Reale we have nothing to go by.” Micki Byrnes, president and said the hospital is in discussions – Dominic Mancuso general manager, of WKYC-TV, Join us…we’re dedicated to your future! with RTA. general manager, Channel 3, expects the station to “I can’t provide specifics beyond WOIO-TV and WUAB-TV do well financially next July — po- that,” she said. “But it is an exciting litical ad spending will be gearing time for Cleveland and we are up for the November election, af- The Middlefield looking forward to our city being in “We’re getting a lot of interest,” ter all — but she doesn’t see the Banking Company the national spotlight.” said company president Pete convention being a financial win- Chylla already has a list of firms Scantland. “I’m sure you’ll see all ner for the station, since any addi- www.middlefieldbank.com that may be useful to clients, in- sorts of inventive (signage) in tional ad dollars will be eaten up 1RUWKHDVW2KLR5HJLRQ2IƓFHVLQ 0DLQ2IƓFHƑƑƑƑƉƊƊƏƏƏŘ:HVWƍƍƉƏƌƋƊƏƏƏ cluding Cleveland Clinic, for every- Cleveland.” by the added cost of the covering &KDUGRQƍƍƉƋƑƏƊƋƋƋŘ1HZEXU\ƍƍƉƎƏƍƐƉƉƉŘ2UZHOOƍƍƉƍƌƐƐƋƉƉŘ0DQWXDƌƌƉƋƐƍƉƑƑƊ thing from billboards to a firm that One obvious way marketers will the city during convention week. *DUUHWWVYLOOHƌƌƉƎƋƐƋƊƋƊŘ&RUWODQGƌƌƉƏƌƐƌƋƉƑ sells space on message boards that make an impression and advocacy “Do I want to win the 6 o’clock &HQWUDO2KLR5HJLRQ2IƓFHVLQ'XEOLQƏƊƍƐƒƌƍƏƌƊŘ:HVWHUYLOOHƏƊƍƑƒƉƐƑƌƋ trail behind bicycles. Chylla said groups will make their points, is news rating that night? Of course I he expects that advertisers will do with billboards. do,” she said. what they can to be visible at or David Yale, vice president of “But I think there is a much big- around Cleveland Hopkins Inter- public affairs for the Cleveland di- ger picture here.” national Airport and from there vision of Clear Channel Outdoor, Byrnes believes that if the city CYBER SECURITY IN along Interstate 71. expects many of the 1,000 bill- leaves a good impression in the IDEAS AT DAWN HEALTH CARE boards his firm has in the region — minds of visitors and even conven- PRESENTED BY Where the action is especially those between Cleve- tion viewers, it will be good for her MONDAY, SEPT. 21 land Hopkins International Airport station. 7:00 - 9:30am • HIMSS Innovation Center Downtown will be ground zero, and downtown — to carry political “If Cleveland is successful, the the place where, in addition to or convention-related messages in station will be successful,” she whatever politicking is still being July. He said it’s too early, though, said. done, marketers and issue advo- to know exactly how many will fit “If that leads to companies mov- cates will have to get creative to that category. ing here, we will be successful. If break through the competing mar- Because zoning laws limit most people move here, we will be suc- Because we understand your business… keting efforts. signage, firms like Clear Channel cessful.”

Business MESOCOAT Litigation continued from page 3 Seeking answers Sonoro wanted to hit Abakan with approved by clients he was serving what he described as a “gigantic Say for a moment that Xinos real- Employment & Labor through a brokerage called CT Se- penalty” that would have driven the ly was controlling the holding com- curities. The association said Xinos cost of the entire loan up to $4.4 panies behind the loans. “engaged in conduct unbecoming million. He didn’t want that Real Estate & Construction A few questions still remain: or contrary to the public interest.” “ridiculous” cost to show up in a He also served as CEO of a few ■ Did Sonoro try to force quarterly report. Health & Medicine tiny public companies, such as iBIZ Abakan to default on George ■ What about the deal that Technology Corp., American Fi- Town’s loan? Trust & Estates caused Abakan and MesoCoat to nancial Seminars (which soon be- During a separate lawsuit against get hit with a contempt of court came Environmental Oil Technolo- Abakan, Sonoro did file an emer- violation? gies) and Mistral Ventures. gency motion on April 23 in an Miller said Abakan had regularly Miller noted that Mistral did a attempt to stop the company from been increasing its stake in Meso- few deals with other closely affiliat- refinancing the loan from George Coat. ed companies in 2007, while Xinos Town. ...we help you grow Thus the transaction, in his view, served as CEO. A week later, Sonoro said it was in the normal course of busi- For instance, it invested in an- would agree to a refinancing deal, ness and wouldn’t be affected by Whether real estate and construction is only an aspect of your other Vancouver firm called Trust- but it made demands that Miller court’s preliminary injunction. business, or whether it is the core of your business, we know cash Holdings Inc., which was run described as unreasonable. For George Town’s lawyers dis- by Mistral’s former chief financial instance, Sonoro would only agree the decisions you make today have a long-lasting impact. agreed, to say the least. officer. to the refinancing deal if its terms That’s why we work tirelessly behind-the-scenes to ensure you One of their main arguments In 2013, an affiliate of that com- could not be changed. focused on the fact that Powdermet make business decisions you can be proud of. Together we can pany, TCash Ads Inc., was sued by The parties settled the Sonoro planned to pay the company $1 accomplish more than a deal; we can achieve success. the federal government for running case in May. Now Abakan owes million as part of the most recent what it described as an “illegal vir- Sonoro $2.9 million, up from $2.1 share swap. tual currency service.” million, excluding interest. And they didn’t expect George Miller told Crain’s that he knew By then, however, Abakan had Town to get the money. little about Xinos’ past when he be- defaulted on its loan with George gan working with him in 2009. “Defendants’ exchange bears all Town. Xinos’ lawyer, Steve Jackson, said the appearance of a ‘fire sale’ of he was unaware of his client’s past ■ Why did Abakan fail to file its assets to permit companies in dire Buckingham, Doolittle & Burroughs, LLC • A Northeast Ohio Business Law Firm dealings. quarterly report on time? financial condition to survive a few Akron • Canton • Cleveland Jackson argued that his past is ir- Miller said the company wanted months longer,” they wrote in a bdblaw.com relevant to the case. to close the Sonoro case first. court document filed on Aug. 8. 20150831-NEWS--24-NAT-CCI-CL_-- 8/28/2015 2:01 PM Page 1

24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015

THE DISH LEE CHILCOTE Nominate Your Best for the Distinguished Marketing and Sales Awards Green City Growers doubl Recognize the achievements of a top sales and 2016 Business Green City Growers, a 3.25 acre between romaine and iceberg let- marketing professional with a nomination for Executive of the Year the Sales & Marketing Executives of Cleveland’s hydroponic greenhouse located off tuce. prestigious Distinguished Marketing and Sales of East 55th Street in Cleveland’s Yet McMicken knows that Green Award (DMSA). Central neighborhood, is one of the City Growers faces an uphill climb. It largest urban greenhouses in the has been challenging to land the If selected, your nominee will join the 2016 country. It employs 30 people and kinds of big customers that can ulti- Business Executive of the Year, David E. Gilbert, produces three million heads of let- mately help it become an urban suc- President & CEO of the Greater Cleveland Sports tuce and 300,000 pounds of herbs a cess story. Commission (GCSC), Destination Cleveland year. Since opening two years ago, it “The level of commitment from (formerly Positively Cleveland), and the 2016 has transformed a swath of the city buyers is not as high as we thought it RNC Host Committee (Republican National dotted with vacant lots and dilapi- would be. Everyone talks about buy- Convention) as well as other outstanding David Gilbert dated houses into a high-production ing locally, but it’s a challenge to get DMSA winners on the stage at the 55th Annual facility with a devoted customer the big guys who can move the nee- Distinguished Marketing and Sales Awards President & CEO of the Greater base. dle,” McMicken said. gala banquet, Thursday, February 25, 2016 at Cleveland Sports Commission The greenhouse opened in 2013 as “Either we’re not delivering the Cleveland Public Auditorium. (GCSC), Destination Cleveland a venture of the Evergreen Coopera- Chilcote is a freelance writer and message, or they’re used to doing (formerly Positively Cleveland), The DMSA is the profession’s premier honor tives, a 7-year-old initiative to create editor who has written for Modern what they always do.” to acknowledge excellence and provide and the 2016 RNC Host new, worker-owned companies that Committee (Republican Farmer, All About Beer, Belt, Agence community recognition for outstanding sales would employ Cleveland residents. National Convention) France Press and other publications. Longer shelf life and marketing achievements. Selection criteria The facility is truly impressive. Inside He is managing editor of Fresh are based on the demonstration of the highest its vast, brightly lit interior, rows of Nonetheless, some of Green City Presented by: Water Cleveland and editorial business, professional and ethical standards. leafy, velvety greens float atop pools Growers’ customers say they couldn’t of nourishing rainwater. Although director of Issue Media Group. be happier with the direction the Nomination forms can be downloaded the venture has always been risky, company has taken. John Selick, exec- at www.SMECleveland.com For more sales have doubled within the past away,” said CEO John McMicken, utive chef at University Hospitals’ information call 216-767-5951 year, with GCG’s local greens avail- stressing that he has spent the past Ahuja Medical Center in Beachwood, able at Marc’s, Heinen’s, the West year bringing in managers with in- first began purchasing GCG’s jewel Side Market, Miles Road Farmers dustry expertise who are helping gar- leaf mix two years ago. He hasn’t been Sponsored by: Market and Kroger, as well as many ner new customers and increase disappointed: The product is much area restaurants. profits. Employees make a living better than what he used to carry, and Event partner: Nonetheless, to mature from a wage of about $12 per hour and are its longer shelf life has helped offset startup to a profitable company, the provided with benefits. costs. Recently, the product has got- greenhouse must dramatically in- “We’re double where we were a ten better, he says — the lettuce is crease its sales volume. It is current- year ago, and we almost need to dou- darker and the jewel leaf mix now car- ly operating at 65% of capacity, and ble again.” ries five to six different varieties, must reach 90% to make money, a GCG has a lot going for it: a great whereas it used to have two. challenging prospect given that it has product and a great story, to boot. “I’m paying more for my lettuce higher labor costs and its greens cost For example, the company’s trade- but I’m also getting more shelf life,” September 30th 50% more than commercial lettuce. mark Cleveland Crisp, which was de- Selick said. “Some of that standard [M]POWER Yet company leaders say it’s doable, veloped by a Dutch company and li- commodity lettuce would come in MANUFACTURING 7:30 AM - 1:30 PM touting hydroponic greens as a less censed exclusively to GCG for a year, bagged, and there were times I would ASSEMBLY John S. Knight Center expensive, longer-lasting alternative is delightfully buttery and crunchy at get two days out of it. With this let- PRESENTED BY 77 E Mill St. Akron, OH to organic fare. the same time. The brand, which is tuce, I can get two weeks. I would “We believe we’re about a year sold at Marc’s, is considered a cross end up throwing (commodity

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AUGUST 31 - SEPTEMBER 6, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 25 bles sales, but needs to keep up pace lettuce) in the trash. So how much automated system that controls ex- would it really cost me?” posure to natural light, allowing Selick, who grew up in Ohio City, plants to thrive year-round even in relishes the ability to support a local the gray Cleveland winter. “We had company and spread the word about an amazing winter growing season Green City Growers to his customers. last year, despite the cold,” McMick- “I put on the menu that we have East en said. 55th Street Basil,” he said. “People Yet perhaps the most compelling are like, ‘East 55th, seriously?’ I’m argument behind GCG’s product is like, ‘Yeah there’s a greenhouse its incredible freshness. Most lettuce down there.’ Cleveland’s on an up- spends days on a refrigerated truck swing, and it’s cool that the food before reaching supermarkets, yet scene is a part of it.” these greens are literally just picked Chad Witham of Premier Produce before they end up in a salad some- One, a distributor that sells Green where. “It goes to a walk-in cooler City Growers’ leafy lettuce to college within minutes, and less than 24 campuses and other institutional hours later, it’s picked up by a truck,” buyers in Cleveland, Dayton and McMicken said. Columbus, says his customers are Other Evergreen Cooperatives’ typically willing to pay more for the companies have proved successful. product. Evergreen Laundry Cooperative and “It takes a miniscule amount of re- Evergreen Energy Solutions, sources to get to the end user, and launched in 2009, began sharing the product is awesome,” Witham profits with employees last year. said. Ninety percent of Evergreen Cooper- “It’s crisp and chefs love it.” atives’ 120 employees live in Cleve- land, 45% reside in the Greater Uni- versity Circle area, and 38% are Incredible freshness ex-prisoners. One of the things that makes The greenhouse was an expensive LEE CHILCOTE Green City Growers stand out is that venture that required $17 million of it is a highly sustainable business op- investment from the Cleveland Green City Growers’ eration. Whereas it requires 40 gal- Foundation, New Markets Tax Cred- products are praised by lons of water to grow a typical head its, University Circle institutions and customers for their of iceberg lettuce, McMicken said, the City of Cleveland. Yet McMicken freshness and longer GCG only uses about one gallon. said this potential economic engine shelf life. The company, That’s because they capture 85% of will be worth it: “What was once an which is led by CEO John the rainwater and snowmelt from the expensive, unsafe place for the city to McMicken (above), building’s roof to grow their greens. maintain is now generating revenue employs 30 people and “This could be a real solution to and income.” produces about 3 million the country’s drought problems,” heads of lettuce and McMicken said. To contact, send an email to clbfree- 300,000 pounds of herbs The greenhouse also minimizes [email protected]. You also can fol- a year. use of electricity. It has a high-tech low Chilcote on Twitter @leechilcote.

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26 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM AUGUST 31 - SEPTEMBER 6, 2015 TAX LIENS (CONTINUED) Care the Wrightway Inc. Edmund Z Sadowski M.D. LLC Mic Ray Metal Products Inc. Room to Grow Learning Center Inc. Montgomery Lynch 756 E. 185 St., Cleveland 12000 McCracken Road, Suite 155, 9016 Manor Ave., Cleveland 87 A Northfield Road, Bedford & Associates Inc. Date filed: July 11, 2015 Garfield Heights Date filed: July 20, 2015 ID: 76-0807542 2940 Noble Road, Suite 101, Type: Employer’s withholding, Date filed: July 6, 2015 Type: Employer’s withholding Date filed: June 12, 2015 Cleveland Heights unemployment Type: Employer’s withholding, Amount: $11,384 Type: Employer’s withholding ID: 34-1775337 Amount: $17,456 unemployment Amount: $10,375 Date filed: Sept. 6, 2005 Amount: $14,315 Metropolitan Food Date released: June 12, 2015 Livewire Productions Inc. Services LLC Island Café Brandall Graphics LLC Type: Employer’s withholding, 6932 Hillside Road, Independence R Engineering Team LLC 22901 Millcreek Blvd., Highland Hills 2530 Hamilton Ave., Cleveland unemployment Date filed: July 20, 2015 P.O. Box 91746, Cleveland Date filed: July 20, 2015 Date filed: July 20, 2015 Amount: $87,208 Type: Employer’s withholding Date filed: July 11, 2015 Type: Employer’s withholding Type: Employer’s withholding, Amount: $16,998 Type: Employer’s withholding Amount: $11,144 unemployment New Jersey Education Association, Amount: $13,993 Amount: $9,386 Custodians Maintenance & Bus Drive Taylor Made Rehab Enhydro Sewer and Drain LLC 3478 Ridge Park Drive, & Builders LLC April Noelle Hart Co. LPA 1047 Oakes Road, Pistol Truck Service Inc. Broadview Heights 2186 Jackson Blvd., 2528 Canterbury Road, Broadview Heights 5281 Engle Road, Brookpark ID: 22-2247096 University Heights Cleveland Heights ID: 46-1461519 Date filed: July 11, 2015 Date filed: April 24, 2015 Date filed: July 11, 2015 ID: 20-2458726 Date filed: June 12, 2015 Type: Employer’s withholding, Date released: June 9, 2015 Type: Partnership income Date filed: June 9, 2015 Type: Employer’s withholding, unemployment Type: Employer’s withholding, Amount: $16,176 Type: Employer’s withholding, unemployment Amount: $8,581 unemployment failure to file complete return Amount: $10,849 Amount: $11,256 Advanced Billing Concepts Inc. Amount: $13,945 Summit Plumbing 24500 Center Ridge Road, Suite Euclid Foreign Motors Inc. & Mechanical LLC Womens Professional 350, Westlake ESS Cubed LLC 20020 Saint Clair Ave., Cleveland 14572 Hartford Trail, Strongsville Services Corp. Date filed: July 11, 2015 452 Forestview Road, Bay Village Date filed: July 11, 2015 Date filed: July 11, 2015 27991 Center Ridge Road, Westlake Type: Employer’s withholding Date filed: July 11, 2015 Type: Employer’s withholding, Type: Employer’s withholding ID: 46-0922239 Amount: $15,924 Type: Employer’s withholding unemployment Amount: $8,453 Date filed: Jan. 22, 2014 Amount: $13,886 Amount: $10,840 Konstanzer Masonry Inc. Date released: June 2, 2015 514 Dover Center Road, Incredible Kids Childcare MCM Euclid Square Mall LLC LIENS RELEASED Type: Employer’s withholding Bay Village & Preschool Center 13829 Euclid Ave., E Cleveland Amount: $31,907 ID: 34-0967162 4651 Northfield Road, ID: 20-0909897 A to Z Auto Service Inc. 13747 State Road, Womens Professional Date filed: June 9, 2015 North Randall Date filed: June 12, 2015 Services Corp. Type: Unemployment Date filed: July 11, 2015 Type: Employer’s withholding North Royalton ID: 13-4271845 27991 Center Ridge Road, Westlake Amount: $15.733 Type: Employer’s withholding Amount: $10,785 ID: 46-0922239 Amount: $12,731 Date filed: April 15, 2015 Greene Arches 4962 Inc. Wonder Gro Inc. Date released: June 9, 2015 Date filed: June 4, 2014 22801 Emery Road, Cleveland Boffice Ltd. 26041 Cannon Road, Bedford Type: Employer’s withholding Date released: June 2, 2015 ID: 26-3494510 1100 W. Royalton Road, Heights Amount: $8,507 Type: Employer’s withholding Date filed: June 9, 2015 Broadview Heights Date filed: July 11, 2015 Amount: $29,091 Type: Employer’s withholding, Date filed: July 11, 2015 Type: Employer’s withholding, Lawrence Harris Construction Inc. Womens Professional unemployment Type: Employer’s withholding unemployment Services Corp. Amount: $15,080 Amount: $12,116 Amount: $10,771 2410 Scranton Road, Cleveland ID: 31-1209545 27991 Center Ridge Road, Westlake Security Management Group Inc. Parma Fresh LLC Bajan Enterprises LLC Date filed: Oct. 25, 2005 ID: 46-0922239 3740 Euclid Ave., Cleveland 5513 Pearl Road, Parma 15700 Benhoff Drive, Maple Heights Date released: June 12, 2015 Date filed: Aug. 19, 2014 Date filed: July 11, 2015 Date filed: July 11, 2015 Date filed: July 11, 2015 Type: Employer’s withholding, Date released: June 2, 2015 Type: Employer’s withholding Type: Employer’s withholding Type: Employer’s withholding unemployment Type: Employer’s withholding Amount: $14,770 Amount: $11,848 Amount: $10,583 Amount: $22,066 Amount: $16,204 REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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AUGUST 31 - SEPTEMBER 6, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 27 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS A legal case for repairing disbursement of reparations, but it is focused Con artist pays AUGUST 24 - 30 on establishing that slave descendants are some of the damage owed.” — Jeremy Nobile a heavy Price Reparations for descendants of African- A Cleveland attorney is helping dozens of American slaves are 150 years past due, and One open door investors recoup millions lost in a plot or- a Cleveland lawyer is calling the tab. leads to another chestrated by Aubrey Lee Price, a former Ayesha Bell Hardaway, visiting assistant Georgia pastor turned stockbroker then professor of law at Case Western Reserve Craig Marvinney embodies the collabora- drug dealer who was sentenced to decades University School of Law, says that estab- tive spirit lawyers should have — at least in prison for his Ponzi scheme after faking lishing a common law trust relationship be- that’s what the prestigious national Federa- suicide and getting caught by police in a tween the United States and African-Amer- tion of Defense and Corporate Counsel Georgia traffic stop in December 2013. icans could be one legal avenue to secure thinks. Chapman LLC’s John Chapman has rep- those compensations. Marvinney, a Cleveland partner at Walter resented nearly 70 investors so far in four Her research on the topic, which began 12 | Haverfield LLP with 30 years of experience group cases settled by the Financial Indus- The big story: Cleveland State University and years ago during her years as a Case law stu- as a defense lawyer, secured membership try Regulatory Authority, or FINRA. The its 24-year-old downtown arena, the Wolstein dent, is outlined in the legal paper “The with the invite-only federation 16 years ago. most recent case, resolved Aug. 11, netted Center, are getting an assist from the Cleveland Breach of the Common Law Trust Relation- This month, he was elected as a board mem- almost $1.3 million for 13 claimants. Cavaliers. One of the perks of the partnership is ship between the United States and African ber for the 2015-16 year and also earned the FINRA ordered that sum, plus court costs, that the Vikings’ men’s and women’s basketball Americans — A Substantive Right to Repara- annual FDCC Connect Award that honors to be covered 100% by Georgia-based FSC teams will get to play some games at Quicken tions,” which will be published this year in members for exemplary efforts furthering Securities Corp., an investment adviser net- Loans Arena. Cleveland State will play five men’s New York University Review of Law & Social the federation’s referral network that com- work Price was registered to whose brokers basketball games and at least one women’s con- Change. prises some 1,400 defense attorneys. reportedly helped funnel investors to Price’s test at The Q in 2015-16, beginning with a Dec. 5 Hardaway argues that a common law rela- An example of those efforts involves a scheme. In that scheme, he falsified reports doubleheader. The partnership also includes the tionship was created with the ending of slav- Canadian lawyer to whom Marvinney re- to cover up the more than $40 million he’s Cavs taking over the bookings of the Wolstein ery and that compensation is still required. ferred a case. The litigation “exploded,” he estimated to have embezzled through his Center for concerts, shows and other non-uni- She compares Native American experiences said, and the lawyer earned so much he left PFG fund. versity events, plus using their powerful market- to those of African-Americans and points out his firm to hang his own shingle. Chapman said FSC argued others were at ing arm to cross-promote Cleveland State bas- that existing Native American trust case law Marvinney said he was surprised by both fault; they questioned Price on the stand for ketball games. supports the idea that the breaching of such honors, adding he’s “very thankful” for the four hours. But a FINRA arbitration panel a relationship provides plaintiffs a right to an recognition. found FSC, which is owned by AIG, negli- Howdy, partner: After merely a year as a mi- accounting from the government and a right “What’s fun about this is there’s a great gent of supervising the books, arguing more nority investor, Cleveland Clinic exercised an op- to monetary damages. deal of attention with some great contacts,” diligence could’ve caught the scheme. tion to take on full ownership of Akron General “It’s a controversial topic that presents im- he said. “It opens doors for recommenda- “In this case, arbitrators felt supervision Health System. Last year, the regional health care portant legal issues,” Hardaway said. “Some tions. If one is an attorney who sends busi- was so bad, so lackadaisical, they felt it was giant purchased a minority stake in Akron Gener- of the most brilliant minds have worked dili- ness to another, and they’re known for that, appropriate to allocate the entire fault to al — a deal that infused $100 million into the Sum- gently to find the best legal approach to estab- odds are others will send business to them (FSC),” Chapman said. “That’s very unusual.” mit County hospital system that now boasts oper- lishing the reparations claim. This is not a pa- and their firm as well.” Price is currently serving a 30-year sen- ating revenue of close to $700 million. When the per about how to fund and manage the — Jeremy Nobile tence. — Jeremy Nobile Clinic purchased a minority stake last year, Akron General CEO Dr. Thomas “Tim” Stover said that if it were up to him, the health system would be- come a full member of the Clinic enterprise short- ly after its one-year anniversary. WHAT’S NEW BEST OF THE BLOGS The flamethrowers “are marketed not as A solid foundation: The Richard J. Fasenmy- Excerpts from recent blog entries weapons, but as fun devices,” according to er Foundation committed $18.5 million to sup- on CrainsCleveland.com. the website. port various research efforts at the Cleveland “We always have the people who just Clinic and Case Western Reserve University’s J.R. with the assist want it for fun. Impress the neighbors at the medical school and to foster the development of J.R. Smith is an interesting guy in many BBQ,” Throwflame founder Quinn White- the next generation of immunology experts. The ways, and it turns out the Cavaliers shoot- head told CNNMoney. Both Whitehead and funding builds on the work of two renowned, ing guard was in the vanguard of a cultural Cleveland-based immunologists — the Clinic’s Ion CEO Chris Byars “said their flamethrow- movement. ers have caused no injuries, and safety is a Dr. Leonard Calabrese and Case Western’s Dr. Futuristic self-balancing scooters — like Michael Lederman — who were among the first priority,” according to the story. the PhunkeeDuck-brand scooter Smith researchers in the country to study HIV/AIDS. (Ion notes on its website that the made famous as a method of arriving at an The funding, in particular, will support joint re- flamethrower “may result in injury or even NBA Finals game — “are the newest status- search efforts, physician recruitment and fund death.” No kidding.) affirming accessory for young musicians, the Clinic’s Center for Clinical Immunology. COMPANY: The OurPet’s Co., The flamethrowers do have practical athletes and celebrities,” The New York uses, both companies told CNNMoney. This changes everything: The Agnon Fairport Times said. They said farmers “can use them to clear School in Beachwood received a $17 million gift Rapper Meek Mill is a big fan of the Sky- fields by burning unwanted brush, and fire — and with it, a new name. The school received PRODUCT: Catty Whack walker scooter, which costs $850 and can departments can use them for controlled the gift from the Joseph and Florence Mandel travel 10 miles an hour. Others promoting burns, to try and prevent accidental forest Family Foundation. In recognition of the contri- The company received a new product similar scooters include Justin Bieber, fires or to stop them from spreading.” bution, the school will be renamed the Joseph showcase award for its Catty Whack at the Stephen Curry and Jamie Foxx. The Feds don’t regulate them, but and Florence Mandel Jewish Day School. The recent SuperZoo pet supply industry trade Matthew Waxman, a founder of Phun- flamethrowers can violate state or local gift is transformative for the school, which has an show. keeDuck, which supplied scooters early on laws. annual budget of around $4.5 million. The vast Pet industry retailers in attendance at Su- to Smith and Bieber, told the newspaper, majority of the gift will go to an endowment for perZoo voted for the Catty Whack as “Best “When we first started pushing to the pub- Anger management personnel and programs, the school said. New Cat Product,” according to a news re- lic, that was our main route: connecting Ready to send that blistering email to lease from OurPet’s. with these celebrities and these athletes. It your coworker/boss/spouse/friend etc. Snap to it: Sherwin-Williams Co. launched a The toy will be available to the pet spe- was everything.” about something outrageous they’ve done? system called ColorSnap to help simplify color cialty market in October, the company said. Unfortunately for PhunkeeDuck, the ex- You might want to reconsider. selection for consumers and painting profession- Gabriella DeSantis, vice president of mar- posure from Smith wasn’t everything it The Wall Street Journal said the “e-vent” als. ColorSnap includes an in-store display, en- keting for OurPet’s, said Catty Whack “al- could have been. — expressing anger via email, text or chat, hanced online and offline tools, and new colors. lows for pet parents to nurture their cats’ “It would obviously have been much, or on social media sites such as Facebook or It has started rolling out and will be available in natural instincts and combine interactive much better if he had played well” in the fi- Twitter — “can be hard to resist,” but re- all 4,000 Sherwin-Williams stores across the play with independent play so your cat nev- nals, Waxman said. search from various corners, including Ohio United States and Canada by the end of January. er feels alone.” State University, shows unmistakably that The company describes Catty Whack as Eternal flame “venting is bad for us.” Sunnier in Philadelphia?: Terry C.Z. Egger “an unpredictable game of hide and seek Ever think to yourself, “What my next In studies, the paper noted, “people re- — the former publisher of The Plain Dealer who designed for cats of all ages.” party could really use is a flamethrower?” A port that they feel better after venting. But led the city’s effort to secure the 2016 Republican It says cats “love the electronic Real- Cleveland startup might be able to accom- researchers find they actually become angri- National Convention — was named publisher of Mouse sound, and the erratic movement of modate you. er and more aggressive. People who vent the parent company of The Philadelphia Inquir- the feather keeps your cat guessing as it anonymously may become the angriest and er. Effective Oct. 1, Egger will take over as head of CNNMoney ran a short feature on a com- most aggressive.” the Philadelphia Media Network, which in- darts in and out at random.” On top of the pany called Throwflame, which is selling cludes The Daily News and Philly.com. He had Catty Whack is a carpeted scratching area flamethrowers for $1,599 that can shoot fire Brad Bushman, a professor of communi- served as president and CEO of the RNC host where cats can groom their claws. for 50 feet. cation and psychology at Ohio State, told committee, but in April of this year, those re- The bottom of the toy has non-skid rub- The piece noted that a Detroit company, the newspaper, “Just because something sponsibilities transitioned to David Gilbert, the ber feet, which keeps the toy from sliding. Ion Productions Team, is selling $900 makes you feel better doesn’t mean it’s president and CEO of Destination Cleveland and There is also an auto-shut off feature, and a flamethrowers that can eject flames for 25 healthy.” The Journal said Bushman “has the Greater Cleveland Sports Commission. replacement feather prey wand is included. feet. Both companies started selling them conducted multiple studies that show that For information, visit www.ourpets.com. this year. venting anger or frustration isn’t beneficial.” 20150831-NEWS--28-NAT-CCI-CL_-- 8/27/2015 4:09 PM Page 1

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2011 Mercedes-Benz 2013 Mercedes-Benz 2012 Mercedes-Benz 2013 Mercedes-Benz C300 4MATIC® E350 4MATIC® E350 Convertible E350 Convertible Stock #m4540 Stock #m4623 Stock #m4493 Stock #m4498 33,515 miles $25,992 52,020 miles $31,991 21,000 miles $39,994 21,884 miles $42,994

2014 Mercedes-Benz 2015 Mercedes-Benz 2013 Mercedes-Benz 2014 Mercedes-Benz E350 4MATIC® ML350 4MATIC® S550 4MATIC® S550 Roadster Stock #m4475 Stock #m478782 Stock #m4568 Stock #m024991 22,674 miles $45,996 9,485 miles $50,996 21,379 miles $61,992 4,150 miles $88,992

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