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VOL. 38, NO. 8 FEBRUARY 20 - 26, 2017

Source Lunch Inside look The Edison is opening doors for hundreds of luxury rentals. Page 3

The List Westfield Bank CEO CLEVELAND BUSINESS Top patent recipients gauges industry. Page 19 in the region Page 19

SPORTS BUSINESS Sandusky builds on tourism might Huge Sports Force Parks project will give a boost, too

By KEVIN KLEPS Money ma ers How the $23.5 million Sports Force [email protected] Parks project is being funded: @KevinKleps $17 million: Funds from Erie County It’s not as if Cedar Point was hurt- bed taxes ing for visitors. In November, — the $3.5 million: Cedar Point’s purchase Sandusky company that owns and op- of the former Gri ng Sandusky erates 11 theme parks and four water- Airport site parks in the U.S. and Canada — re- $3 million: Investment by The Sports ported that attendance jumped 2% Force of Canton, Ga. and out-of-park revenues spiked 6% in the rst three quarters of 2016. An annual report by emed Entertain- have time to make it to Cedar Point.’ ” ment Association said Cedar Point’s at sparked Cedar Point’s $3.5 2015 attendance increased 8%, to 3.51 million purchase of the former Gri- million visitors, edging as ing Sandusky Airport site, and led to the top in Ohio. a partnership with e Sports Force, But Cedar Fair ocials believe a a Canton, Ga.-based company that massive, $23.5 million project that designs, builds, operates and main- ocially opens for business next tains sports facilities. month ensures that its agship prop- e Sports Force contributed $3 erty has all of its bases covered. million, and another $17 million in “Today, kids are overprogrammed. Erie County bed taxes produced ey have so many things to do,” said Sports Force Parks at Cedar Point Jason McClure, Cedar Point’s vice Sports Center — a 57-acre home of president and general manager. “One future baseball, softball, soccer and of the biggest summertime commit- lacrosse tournaments that will dou- ments is sports. We just heard from ble as a playground and Cedar Point The Sports Force Parks at Cedar Point will host 39 tournaments in its first year and is expected to draw about our guests, ‘We’re spending time and recruiting spot. 111,000 annual visitors by 2020. (Contributed photo) money on tournaments. We don’t SEE SANDUSKY, PAGE 15

EDUCATION State is adding to teachers’ challenges

By RACHEL ABBEY McCAFFERTY would be required to take part in Board, which is made of business and get engaged with schools, he said. written broadly on purpose, Burgess some kind of “externship” in order to leaders, government ocials and ed- One of the budget proposals that said, as the state wants to leave it up to rmcca [email protected] renew their educator licenses, super- ucational administrators. has attracted a good deal of negative the local districts to decide what this @ramcca erty intendents would have to name three Ryan Burgess, director of the Gov- attention recently is the teacher “ex- looks like in practice. Ultimately, if this business people to non-voting posi- ernor’s Oce of Workforce Transfor- ternship” proposal. As written in the provision is passed, the state Board of Gov. John Kasich’s proposed two- tions on their school boards, and the mation, said the skills needed for to- House bill for the budget, teachers Education would write the rules, and year budget aims to more closely in- state would put a stronger focus on day’s jobs are changing rapidly, and would have to take part in some sort of local professional development com- tertwine business and pre-K-12 edu- work-based experiences for students. the state wants to make sure Ohioans “on-site work experience” with a busi- mittees would determine the speci c cation. e proposals rose out of recom- are being appropriately trained. To ness or chamber of commerce so they parameters. It could end up being as Under the proposal for the scal mendations made in December by make that happen, business leaders can renew their teaching licenses. simple as planning a eld trip, he said. year 2018-2019 budget, teachers the Governor’s Executive Workforce really need to “roll up their sleeves” e language in the budget was SEE TEACHERS, PAGE 18 Entire contents © 2017 by Crain Communications Inc. Akron news << Industrial leagues helped Larry Brown get his start in basketball. Page 16 Ohio Gratings gets the job done on the river. Page 17 PAGE 2 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS Datatrak’s numbers are finally in the black By CHUCK SODER man Alex Tabatabai, who led the ac- Topsy-turvy times ran, former vice president of legal af- tivist investor group. Datatrak’s legal fairs. Both lawsuits accuse Datatrak “This is the [email protected] costs fell partly because, days before A look at Datatrak’s closing stock of breaching their employment con- corporate @ChuckSoder the new management team took prices since March 2015: tracts, among other oenses. over, the company settled a patent Ward said he isn’t worried. He headquarters of First, activist investors took control lawsuit it had led against a compet- March 2, 2015 $5.50 feels like the company is moving in of Datatrak International. en, the itor called Medidata. the right direction. Datatrak — software company started doing “None of that was the core busi- May 1, 2015 $7.35 He also says that morale is high things it hadn’t done in a very long ness — the things that mattered,” Ta- July 1, 2015 $7.75 among employees, many of whom forever. This is the time. batabai said. “ ... We’ve done a 180.” have been with the company since he Like making money. And hiring Now Datatrak is reinvesting in a lo- Sept. 1, 2015 $7.05 left in 2008. corporate new employees at its Mayeld cal oce that had been slowly “I was so happy to see smiling fac- Heights oce — which no longer has shrinking. e company has hired Nov. 2, 2015 $5.30 es that I know,” said Ward, who re- headquarters.” to compete for the title of “headquar- several new sales people over the Jan. 4, 2016 $3.52 ceives an annual salary of $220,000, ters” now that Datatrak has closed past year and now has about 50 em- according to his Oct. 1, 2016, employ- — James R. Ward, CEO, Datatrak, the downtown Chicago oce that it ployees, including 30 people in March 1, 2016 $4.80 ment agreement. Before that, he was on the company’s Mayfield Heights opened in 2015. Northeast Ohio. On Monday, Feb. 20, making $1 per month, though he did oce e local oce wasn’t allowed to the company is scheduled to take May 2, 2016 $4.50 receive $155,000 in Datatrak stock to hire new employees under the previ- down a wall so that it can add 2,200 compensate him for that work. designed to help clinical research or- July 1, 2016 $5.40 ous management team, which was square feet to its 4,400-square-foot Granted, there still are problems to ganizations manage multiple clinical led by a CEO who lived in Chicago. oce at Landerbrook Corporate Sept. 1, 2016 $8.10 solve at Datatrak: e company’s rev- trials — and the people, budgets and But that team is gone: ey were Center, Ward said. enue was down through the rst nine timelines associated with those tri- kicked out by activist investors after a Ward works from the company’s Nov. 1, 2016 $7.80 months of 2016. als. It’s meant to work with Datatrak’s nasty proxy battle that gave the activ- small oce in College Station, Texas, For instance, it generated $2.14 existing product, which helps cus- ists total control over the board of di- but he emphasized that its base of Jan. 3, 2017 $10.00 million in sales during the third tomers capture clinical trial data. rectors at Datatrak, which makes operations is now in Mayeld Feb. 15, 2017 $8.67 quarter, down from $2.64 million e sales team also will have an software that’s used to manage clini- Heights. during the third quarter of 2015. e easier time selling under the new cal trials. “ is is the corporate headquar- Source: OTC Markets company’s backlog of purchase com- management team, DeMell added. e team that replaced them ap- ters of Datatrak — forever. is is the mitments is down as well. e company previously required pears poised to stop Datatrak’s long corporate headquarters,” he said. ough revenue fell, not one client clients to sign what he described as money-losing streak: e company Ward has a history with Datatrak: of more than $1 million during scal left Datatrak during the leadership overly burdensome contracts, and it turned a prot of $886,000 during the He previously served as CEO of Click- 2014 — a year when it generated transition, said Scott DeMell, a long- didn’t oer enough price exibility. rst three quarters of 2016. If it posts Find, a Texas company that Datatrak about $11 million in sales. At the time employee who was recently pro- “ at was a massive barrier,” he decent fourth-quarter numbers, then acquired in 2006. He left in 2008. at time, a Datatrak representative told moted to vice president of sales. said. 2016 will have been a banner year, year, Datatrak sued Ward and other Crain’s that the two executives chose “Every client we had then, we have He isn’t the only longtime employ- given that Datatrak has lost money former ClickFind shareholders, say- to take some of that money in stock, today,” he said. ee who was unhappy with the previ- for nine of the past 10 years. (It ing they failed to disclose important but he wouldn’t say how much. DeMell expects the revenue num- ous management team. Chief nan- earned $100,000 in 2010.) information about the company pri- Both sides made a series of brutal bers to eventually turn around now cial ocer Julia Henderson said she How did it generate $886,000 in or to the deal. e parties settled the public statements about each other, that Datatrak is beeng up its sales felt an “incredible level of frustra- prot for the rst nine months of lawsuit a few months later. but in the end, shareholders elected team. DeMell said he was the only tion” working for what she described 2016? By taking a hacksaw to admin- e real ght, however, didn’t start the three board members favored by outside sales employee at the start of as a “top-heavy” management team istrative expenses, which dropped by until late 2015, when Tabatabai’s in- Tabatabai Investment Management, 2016. ere now are seven, plus a that needed to rein in spending. Be- $3.7 million, or 44%. e biggest sav- vestment rm put out a news release which at the time was called Arosa new marketing employee, he said, fore the leadership change, Hender- ings came from lower executive sala- accusing Datatrak’s previous leaders Investment Management LLC. ree noting that inside sales “shrunk a bit son was the company’s controller, ries, followed by legal costs and ex- of mismanagement. For instance, the other members resigned in February to grow outside” sales. but she said she felt powerless to do penses related to the Chicago oce, rst release noted that Datatrak paid 2016 as part of a legal settlement with e sales team also has a new anything about the situation. at which has been subleased, according two former employees, CEO Law- the investment rm. Datatrak still product to sell. Datatrak in Novem- has changed, now that new people to the company’s new leaders, CEO rence Birch and chief nancial o- faces a lawsuit from Birch and anoth- ber released its Clinical Trial Man- are in charge. James R. “Jim Bob” Ward and chair- cer Jennifer Mabe, a combined total er led by Mabe and Varnesh Sritha- agement System, a product that is “ ey listen,” she said. CRAIN’S CLEVELAND BUSINESS | FEBRUARY 20 - 26, 2017 | PAGE 3 Edison is enticing draw at Gordon Square

$30 million project More online: features 307 suites, Take a peek inside The Edison by checking with monthly rents out a photo gallery at crainscleveland.com. mitted she was surprised the rst time she saw topping out at $3,900 the view of downtown Cleveland from east-fac- ing windows in the suites. By STAN BULLARD e design also may warm the hearts of ur- ban planners: Edison is not a gated communi- [email protected] ty. e nished Father Caruso Drive will con- @CrainRltywriter nect with the surrounding street grid. Watson said he would not have considered the property Weston Wilson describes the wait until con- if it were gated or lacked such a link to the struction workers complete his one-bedroom neighborhood. apartment at e Edison at Gordon Square in NRP also took steps to match the new suites Cleveland as “six months of the night before to current tastes and city life, including oering Christmas.” quartz as an optional upgrade to granite coun- e Rocky River native, 33, who moved back tertops, which are standard. to town last Christmas after living in cities on Scott Villani, NRP vice president of market- the coasts including Manhattan and San Fran- ing, said the design incorporates a parking spot cisco, leased at Edison because of its proximity for a food truck — complete with an electrical to the Cleveland Museum of Art and the Cleve- connection so vendors won’t need a noisy gen- land Orchestra, and the ability to ride his bike erator — that NRP hopes to have occupied on a to Edgewater Beach. daily basis to generate some local avor for the However, other tenants will move in sooner property. than Wilson, as the lights will go on in April for “We believe our tenants don’t cook as much the rst 100 suites to be nished at NRP Group’s as homeowners,” Villani said. “We believe it will 307-suite rental community in Cleveland’s De- be a nice feature to oer tacos from a food troit-Shoreway Neighborhood. e $30 million truck. is is something we are going to do in project is on a sprawling site bordered by our other urban properties going forward.” Breakwater Avenue between West 58th and A national developer of market-rate and af- 65th streets. e remaining suites will go on the fordable properties, NRP included in Edison a market as more buildings are nished every space for working on bikes as well as bike storage. few weeks through the fall. “We feel like we are part of the neighborhood Although apartments in new or renovated in Cleveland in a dierent way than in other cit- buildings have exploded in Cleveland proper ies where we build and there might be more the past few years — and are booming this year Above is a view of Lake Erie and the marina at Edgewater Beach, which is the backdrop for chain restaurants nearby,” Villani said, so ten- with another four projects throwing 400 suites 307 apartments going in at NRP Group’s The Edison on Cleveland’s West Side. Below is a ants will get information about Detroit-Shore- onto the market — the Gareld Heights-based look at the living area of one of The Edison’s artsy models, and a one-bedroom suite is way restaurants, even a few tickets to the near- developer’s Edison has unprecedented scale in shown at bottom. (Stan Bullard photos) by Capitol eater, 1390 W. 65th St. To build a city neighborhood such as Detroit-Shoreway, local connections, Arnold has joined the local and it comes with resort-style amenities. merchant’s association meetings; its members Je Ramsey, executive director of De- also got an early tour of the development. troit-Shoreway Community Development Even though it accents local ties, NRP esti- Corp., said Edison “provides a product that is mates that 40% of its prospective tenants will currently only available in the suburbs as a life- move to Cleveland from other cities. Villani style community. We’re also excited because it said Edison also is getting looks from a lot of will bring 300 families to Detroit-Shoreway. In- current downtown dwellers seeking a quieter creasing population density in the neighbor- surrounding “still close to the action.” hood is really important to supporting our In addition to standard marketing tech- restaurants and retail development.” niques, NRP has created cardboard virtual real- e complex has a large pool and tness cen- ity goggles — essentially boxes a smartphone ter, and a penthouse space that can be rented ts into — for prospects so they can explore a for dining or entertaining. It also oers pedes- video the company produced of the city, the trian access to Edgewater Beach and the neigh- project and a map of the neighborhood. borhood’s entertainment and nightspots. Artistic air also went into the two-bedroom Ralph McGreevy, executive vice president of model suite to draft on the vibe of the neigh- the Northeast Ohio Apartment Association borhood’s arts district. trade group, said Edison’s “scale is amazing. Susie Frazier, an artist and designer who has With the Lake Erie connection, it’s Chica- a studio at 78th Street Studios, 1300 West 78th go-style living at Cleveland prices.” Street, created some furnishings and brought Edison doesn’t have Chicago prices, but it in others produced by local artists, manufac- doesn’t have the cheap rents of Cleveland’s not- turers or retailers. so-long ago past, either. Rent for an Edison town- e model includes furnishings of small- house (which includes attached parking) tops out er-than-typical sizes to match apartments, she at $3,900 monthly. Two-bedrooms are in the said, that are available for sale. $2,000 range, and one-bedrooms start at $1,075. For example, a four-seat dining table pro- Demand has been so strong, said Nancy Ar- duced with found wood and metal measures nold, NRP senior marketing manager at Edi- just 52-by-36 inches. A coee table consisting son, that introductory one-bedroom rates have of a horizontal slice of a Spruce tree that Metro- been phased out; 25 suites already are leased. politan Hardwoods Urban Sawmill of Cleve- Prospective tenants began getting tours on land retained from a Lakewood site has edges Feb. 6, the same week NRP opened a leasing formed by the tree’s natural shape rather than a center in a trailer on the site and the one- and straight edge. She also produced tiny end tables two-bedroom model suites. in one bedroom, and curated artwork from e extension of Father Caruso Drive through Hedge Gallery that decorates the space. the center of the complex will be paved in the “ ere’s great value for tenants who want to spring, but it’s currently a muddy, tire-track live an urban lifestyle but also want to feel low marked access construction workers use to anxiety when they come into their homes,” Fra- reach the buildings. Walking through the blocks- zier said. She described the features, which are long construction site creates the feeling of trek- also available for sale, as a “modern Zen sanc- king through construction of a new city. tuary steeped in modern design.” Workers are nishing seven new buildings on However, not everything is new on the 10- the one-time industrial site. e tallest buildings acre site. are four stories. e shortest are the 18 town- One old building was retained — Frazier actu- houses with three oors. Suites facing Breakwa- ally used rods she found inside for a sculpture in ter at ground level have a brownstone feel. the model — for a so-far undetermined use. With all the contemporary-styled buildings, Arnold said the water tower atop the indus- designers and NRP planners spent a lot of time trial building will be painted and lighted to ensuring suites have as many views as possible serve as a locater beacon. e tower is familiar of the lake or surrounding city. to motorists approaching the Shoreway’s West- On a tour of the property, even Arnold ad- inghouse curve from both directions. PAGE 4 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS Strong housing market “Risk management is at the forefront of every organization’s is a Third Federal focus strategy today, By JEREMY NOBILE have, it gets people moving and doesn’t scare them away.” including ours. [email protected] at’s because borrowers want to That’s why @JeremyNobile lock in rates for res and new-home buys before they move further. Armada is our Coming o a record year, Cleve- at helped carry originations at trusted advisor.” land’s ird Federal Savings and the bank to a decade high. Loan is looking to a rebounding “But I think, overall, consumers in RANDY MYEROFF housing market for another strong general are more optimistic than CEO, Cohen & Company performance in 2017. they have been since the start of the For observers, that prognosis is a recession,” he added. “at optimism promising sign the housing market is critical for continued growth in the will continue to rebound. economy in general. But it’s especial- LEARN MORE J www.armadarisk.us/Cohen Yet, for one of Cleveland’s oldest ly important in the housing market.” hometown banks, which built itself on the residential mortgage business, Contently conservative some diversication would elevate the bank, and its revenues, to the Historically speaking, with such a next level. “From 2008 to heavy focus on the residential mort- TFS Financial Corp., the bank’s gage business, ird Federal could We Protect. You Grow. parent company, is run by a conser- 2014, we were have faced disaster in the last reces- www.armadarisk.us X 216-350-5050 vative team helmed by president and sion when home values sank be- CEO Marc Stefanski, a second-gener- stagnant, with not tween 30% and 50%. ation leader who clearly values stay- However, the bank was relatively ing true to the business and driving much appreciation well positioned when the downturn philosophies of his parents, who came. at’s because the company founded ird Federal in the tail end of homes in raised $1 billion in capital with a 2007 of the Great Depression. IPO. at risk-conscious approach has Northeast Ohio “e housing market got clob- worked rather well for TFS this far. bered, and we felt it,” Stefanski said. But it’s also stymieing the bank's especially. Now, “But we raised that capital before the full potential. bottom fell out of the economy. So “ey are a nancially strong com- that’s begun to we had plenty to endure whatever pany. e question is one of growth,” was going to happen.” said Fred Cummings, president of change, and that’s Having that high level of capital for Elizabeth Park Capital Management, a “rainy day” comes back to a philos- a bank-focused hedge fund in Pepper giving room for ophy Stefanski said his parents im- Pike. “It’s a nice, steady bank, just not parted on him. fast-growing.” home equity lines And it’s fair to say TFS has quite e company hit a record stock the rainy-day fund. value of $19.83 per share in early De- of credit.” TFS’ total capital ratio at the end of DON’T LET THE WRONG LENDER cember, but that has since come back its last scal year was more than 21%. down and currently hovers around — Marc Stefanski, president and CEO, A bank is deemed “well-capitalized,” DROWN YOUR COMMERCIAL $17.40 per share. Third Federal Savings and Loan the best regulatory designation, at Slow revenue growth is seemingly 10%. REAL ESTATE INVESTMENTS why TFS stock lost a little luster with moving forward. So while TFS has a signicant investors recently — dropping more In the last quarter of 2016, for ex- cushion in its capital levels, that’s a Call Northeast Ohio’s No. #1 than 10% in a matter of weeks — de- ample, 33% of new loan originations lot of money that could otherwise be Commercial Real Estate Lender spite a record year of loan originations in mortgages and equity lines of put to use in various ways. TFS most and growing dividend payments. credit came from states other than regularly uses it conservatively, buy- Jonathan A. Mokri “ey have a lot of work to do,” Ohio and Florida. ing back stock. 440.526.8700 • [email protected] Cummings said. In terms of diversication, spread- Most banks would use excess capi- www.cbscuso.com ing out the mortgage-related busi- tal to expand the company by devel- Banner year for mortgage ness is where ird Federal is focus- oping new products, or breaking into Providing Commercial Loan Financing in ing much of its e orts. And with a commercial real estate, or even buy- SM business Partnership with Area Credit Unions positive outlook for the housing mar- ing another institution. Any of those TFS’ last scal year, ending Sept. ket, with values rising not only in e orts should, in theory, grow mar- 30, 2016, saw net income grow 11% Northeast Ohio but nationwide, Ste- gins and expand loans and deposits. over the prior year to $80.6 million. fanski expects that volume to contin- And with a loan-to-deposit ratio at’s a solid increase. But it was ue to grow this year. around 140% — an optimal level, ex- mostly attributed to a $7 million re- “From 2008 to 2014, we were stag- perts say, is generally around 80% or duction in non-interest expenses nant, with not much appreciation of so, and most banks should be below and $5 million in loan loss provisions homes in Northeast Ohio especially," 100% — that’s something the bank BUSINESS GOT that were released and plugged into he said. “Now, that’s begun to will need to watch. income. change, and that’s giving room for However, acquisitions aren’t part Notably, though, the bank did see home equity lines of credit.” of the TFS growth strategy. e hous- YOU UP AT home purchase mortgage volume in- Having a strong presence in Flori- ing business is. crease 21% in 2016 over the prior da, where home values have grown And maintaining those uniquely year. at rate outpaced a national faster than Ohio, also helps, he add- high capital levels is something im- NIGHT? housing market that saw an increase ed. And a strong online lending busi- portant to Stefanski. of 7% in home sales in the same peri- ness makes the bank competitive in So while TFS is a well-capitalized, od, according to the U.S. Department its other markets. nancially sound company, revenue of Commerce. In the loan origination business, Ste- growth could be a challenge regard- Stefanski chalks up that perfor- fanski partly credits growth there to the less of what the banking landscape mance to a variety of factors. Besides Fed’s movement on interest rates. looks like in coming months or years. increased consumer condence, the “e slow movement by the Fed to Stefanski has only optimism for bank is marketing mortgage prod- raise rates actually helps the whole the future, though, and remains ucts in 19 states besides its home housing market,” he said. “If rates wholly condent in the company’s count fewer sheep state of Ohio and Florida, the two went up too fast, then the market conservative approach to the market. where the bank has a physical pres- could dry up. at makes people anx- “I do think 2017 is going to be an- with us by your side. ence. And that will remain a focus ious. But when they inch up like they other great year,” he said.

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For more information on Benesch’s Labor & Employment Practice Group and its abilities, contact Eric Baisden at (216) 363-4676 or [email protected]. PAGE 6 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS 15,136 SF Available for Lease Showroom / O ce / Warehouse NEO is now a ‘predator’ in biomedical industry By LYDIA COUTRÉ make sure we’re riding that wave as $89 million well.” [email protected] Of the nearly $200 million that was BioEnterprise denes biomedical @LydiaCoutre raised by the Northeast Ohio in three categories: medical devices, biomedical industry in 2016, 45% was pharmaceutical and health care Northeast Ohio has reached — secured by the medical device field. technology. and maybe even passed — a key tip- Medical device companies raised ping point in the region’s e orts to 45% of the capital funding in the re- grow the biomedical industry, said $58 million gion, leading as it historically has. Aram Nerpouni, president and CEO Amount that was raised Biotech and pharmaceutical compa- of BioEnterprise. in biotechnology, which represents nies raised 29%. Not only is the region seeing more 29.3% of the total. And though health care IT and 1298 Centerview Circle, Copley, Ohio acquisition activity, but there’s also software and services companies ac- • 15,136 SF Available • 1 Dock & 3 Drive-In Doors been an increase in companies stay- counted for the smallest slice of the • 10,000 SF Warehouse Area • 208 / 480 / 3-Phase Power ing here and adding to the economy, $50 million pie with 25%, funding in this sector • 5,136 SF O ce Area • 16’ Ceiling Height he said. Amount that was raised in health more than doubled between 2015 • Large O ces, Conference Room, • Abundant Parking Space “We’re no longer just the prey. information technology — 25.3% and 2016. Reception Area, Showroom, Training • Immediate Access to SR 21 & Minutes to We’re also the predator when it of the total. e growth is in part driven by the Room, Full Kitchen, Lunchroom I-76 & I-77 comes to the biomedical space,” Ner- fact that determining the success of a pouni said. health IT company is cheaper and Kevin J. Kuczynski G.F. Coyle III, SIOR BioEnterprise, a local nonprot medical industry, said Bill Koehler, faster than other areas that require 216.861.5684 216.861.5286 tasked with helping health care start- Team NEO CEO. years of clinical trials and a lengthy [email protected] Geo“ [email protected] HannaCRE.com ups, began in 2002, bringing North- “ey’re not just companies that approval process. east Ohio institutions around the ta- pay people that generate payroll tax,” ere isn’t as much job creation ble to gure out how to grow the he said. “ese are entities and in- here in pharma, Nerpouni said, but region’s biomedical sector. at sec- dustries and supply chains that are companies like Abeona erapeutics tor grew 59% between 2000 and 2016 rich and need to be cultivated and (which develops gene therapy and Become a skilled iOS developer in only 15 weeks! to become a $5.6 billion industry, nurtured, et cetera, so that we can plasma-based products for rare dis- according to a report from BioEnter- continue to grow. And that’s what eases) and BioMotiv (focuses on ac- prise and Team Northeast Ohio, the we’re seeing.” celerating breakthrough discoveries regional business attraction nonprof- Nerpouni said he was a little wor- into therapeutics) are very helpful in it. ried about a lull in 2015 with only 34 shifting that paradigm. Manufacturing employment has local health care startup companies Growth in the biomedical industry been declining since the early 2000s, raising venture capital. But in 2016, also has a horizontal e ect that can but those losses were o set by growth that jumped to 46, the second-high- resonate across the broader econo- in health care, said Jacob Duritsky, est number in the past ve years. my, Koehler said. vice president of strategy and re- In total, those 46 companies raised For instance, other industries may search for Team NEO. about $197.8 million in venture in- look at how they can leverage the Historically strong industries in vestment, just below the $200 million growth in technology for their own APP the region — automotive, steel, man- threshold the region had been companies. Accelerated Programming Pathway ufacturing — help drive a productive achieving and surpassing. “When you look at the opportuni- biomedical sector, he said. Nerpouni is focused on the “in- ty in health care and biomedical, by Lakeland’s Information Technology “If you think about job creation, credible diversication” in health this isn’t something where we’re & Computer Science Department output, future productivity, it truly is care, which he said bodes well for fu- hoping it happens. is isn’t some- the overlap of those innovations onto ture years. thing where we need a transforma- these historically really strong indus- “It’s not like we’re hanging our hat tional change to really get us on the Lake County’s only accelerated iOS tries,” Duritsky said. on one sector and forsaking every- right track,” Nerpouni said. “We’re mobile app training starts this August In roughly the past decade, the re- thing else,” Nerpouni said. “It’s a real- probably 10 years into what is a 20- gion has gone from having institu- ly nice mix of things we’re good at as or 30-year cycle when you look at at Lakeland Community College. tions, a vision and some capabilities a region in medical devices, and this cluster development where to having companies, infrastructure things that are broad opportunities we’ve made a tremendous amount and an ecosystem around the bio- in the larger economy that we want to of progress.” Visit lakelandcc.edu/itcs for more information and to apply. Euclid recycler InterGroup International shuts down

By FRANK ESPOSITO sales of $20 million, but that dropped “We were proud to to $11 million by full-year 2016. Many Plastics News recyclers have been a ected by lower have served the selling prices for recycled material. Recycling company InterGroup “In 2012, we were getting 22 cents International Ltd. has closed its industry as long as per pound for material that we’re doors after 11 years in business. now getting only 5 cents for,” Gloger Euclid-based InterGroup may op- we did. We said. “at’s part of the problem.” erate on a reduced basis through the InterGroup survived a late-2007 end of the month, owner Neil Gloger conducted our re that destroyed its original site in said in a Feb. 14 interview with Plas- business in a Warren and almost all of the rm’s tics News, a sister publication of inventory, including millions of Crain’s Cleveland Business. e com- respectable way.” pounds of plastic scrap. InterGroup pany “had too high of a debt load,” he rebuilt its business and moved to the added, and was closed by its lender, — Neil Gloger, owner, InterGroup Euclid site in 2010. Fifth ird Bank of Cincinnati. International Ltd. As the business grew, InterGroup “Several of our customers have added the Jackson site near Atlanta gone bankrupt, leaving us with $1.2 and a site in Springeld, Mo., as well. million in uncollectable receivables,” industry as long as we did,” said InterGroup did most of its business Gloger said. “We never missed a pay- Gloger, who founded the company in in polypropylene, sourcing scrap ment to our bank, but they have reg- 2006 in Warren. “We conducted our from industrial packaging, automo- ulations that they have to follow.” business in a respectable way.” tive and housewares. e company Five InterGroup customers in to- e closing a ects InterGroup’s lo- also recycled polyethylene, polysty- tal have led for bankruptcy, includ- cations in Euclid and Cleveland, as rene, PVC and PET. ing one that owed the company al- well as a former company site in Gloger said he remains committed most $600,000. e customers Jackson, Ga. Gloger expects the com- to the recycling market as he looks for included a mix of compounders and pany’s unprocessed scrap and some his next stop. “Whether I start some- processors. machinery will be sold by the lender. thing new or work for someone else, I “We were proud to have served the At its peak, InterGroup had annual still love this industry,” he added. CRAIN’S CLEVELAND BUSINESS | FEBRUARY 20 - 26, 2017 | PAGE 7 Deregulation could add bank to PE sector By JEREMY NOBILE deadline was pushed back a couple By the time Evolution began rais- stretch to provisions that have been missed,” Sinnenberg said. “But times), many banks acted right away. ing its second fund in 2011 with a $30 shaped private equity today, there’s a I think the banks miss loaning into [email protected] Cleveland’s Cyprium Investment million target, Dodd-Frank was in sense that banks would, in fact, see and providing debt capital to lever- @JeremyNobile Partners, for example, was estab- place, and banks were no longer par- opportunity and get involved. aged-buyout rms. ey’re just re- lished in mid-2011 as the investment ticipating. “e longer-term question is stricted by the regulators now.” Fund managers at small, new or and nance team of KeyBank’s Key “e traditional PE rule was if you whether banks go back into the mar- In a market like Cleveland’s, where otherwise aspiring private equity Principal Partners and left the bank had a good fund one, you keep your ket. Can they? Would they? It’s hard to there is a number of small funds and groups seem hopeful a rising tide of to form their own rm as a direct re- investors and roll into fund two,” An- say,” said Sinnenberg. “But it’s likely. I a history of new funds starting up, deregulation in nancial services sult of Dodd-Frank regulation. e derson said. “In our case, in my opin- think it’s an asset class banks would another stream of nancing could could lift their ships as well. bank could let its portfolio of invest- ion, we had a good fund one — we like to have in their portfolios. And I spur new rms and enhance deal And in Northeast Ohio’s rather ac- ments run down with Cyprium man- had more than 30% investor return — think banks are paying attention to it.” terms as more groups compete for - tive private equity scene, populated aging those, but the dierence was but then without the banks, we lost at Contacts at some large banks in nancing. After all, banks have lower by small and midsize rms to some the bank was no longer running that least 25% of our investor base. It’s Cleveland said it’s preemptive to costs of capital than specialty nance of the world’s largest, deregulation operation in-house. painful to go out and replace that.” weigh in on their interest until regu- companies, so they can oer lower could open up new nancing streams “e exercise with Dodd-Frank Non-bank specialty nance com- lations change. rates and still be pro table. by permitting banks to dabble in was to bolster bank capital bases, panies would, and continue to, ll But conversations about private So fresh funds, like Align, would funds like they used to prior to the and these operations were seen as the gap as banks became less com- equity are certainly happening. likely see more dollars and better - Dodd-Frank Act. risky,” said Cyprium chairman John petitive for nancing or ditched them Of course, if banks do get involved nancing terms. And new funds could “Right now, it’s hard to tell what Sinnenberg. “If you really thought entirely because of the regulations. in private equity again like they used form, spurred by a renewed interest might happen,” said Chris Jones, there was risk to it, then it’s the right Dodd-Frank actually led to a surge in to, it’s not going to have a transforma- from banks. managing partner at Align Capital move to get out of it. But for every those rms as they sought to ll the tive impact on the industry. “When it comes to smaller busi- Partners, Cleveland’s newest private bank holding company I’m aware of, void created by banks. New York’s ere’s more than enough capital ness getting capital or smaller funds equity rm, which closed its rst these were pro table investments.” Madison Capital Funding would be out there right now at this point in the getting capital, I think banks are a fund last fall at $325 million. “But it’s Ironically, Sinnenberg said, some an example of one of those. cycle, and that’s helped even small, huge piece of the puzzle,” Anderson something we are watching closely banks had “knee-jerk” reactions and But those groups tend to be on the new rms like Align Capital get trac- said. “I think probably the biggest with our advisers.” sold o their private equity invest- coasts. ere aren’t any in Cleveland. tion with fundraising early on. swing is for rst-time funds and Of the many parts in Dodd-Frank, ments instantly on the secondary And that’s something Jones said he Meanwhile, giant rms like e Riv- smaller funds who want to focus on section 619 in particular — common- market, likely for less than they laments simply because he’d rather erside Co., with a massive base of in- smaller ends of the market.” ly known as the Volcker Rule — gen- would’ve made if the investment ran work with local institutional inves- vestors and long track record of deals, Could that translate to more com- erally prohibits federally insured its course — which would’ve had a tors — like a Cleveland bank. are unlikely to see much impact if petition in the private equity land- banks from sponsoring or investing negative eect on capital. Anderson said that if banks were banks do get involved in the sector scape at-large? in private equity and hedge funds. More importantly, prior to Dodd- participating, Evolution’s third and again. Firms like that aren’t having any “It would be interesting to us if ere are some exceptions. e Frank, banks often participated in most recent fund, which closed at issues with fundraising right now — the some of these institutions came back regulations get complicated, notes funds in their early stages when rms $30 million, might have exceeded challenge is more in nding the best into the market because they have Ronald Stepanovic, a partner at law had no real track record for perfor- $40 million. deals as dollars ow into the sector. largely just left it,” Anderson added. rm BakerHostetler whose practice mance, providing early-stage sup- If nancial deregulation does “e banks themselves haven’t “We would love it if they did.” focuses on private equity. But a moti- port that gets funds moving. vation behind the rule, he explained, Cleveland’s Evolution Capital was to mitigate banks’ participation Partners received support in its rst in risky investments — whether pri- fund in the mid-2000s from what was vate equity was truly “risky” many - National City Bank at the time, nance experts would disagree with. among other investors. Without that, And as a result, banks spun out cofounder and managing partner private equity operations and Brendan Anderson said he’s unsure stopped nancing deals and invest- how their rst “puny” fund of $17 ing in funds while letting current in- million may have come together. vestments age out of their portfolios. “Financing wasn’t easy, but this Even though the deadline to comply gave you a base when the banks with divesting from private equity op- come in,” he said. “It was a wonderful erations is actually later this year (the thing to have them on board.” Mark R. Levine, M.D. Bryan Costin, M.D.

The Cleveland Eye Clinic Welcomes

NOMINATION DEADLINE: MARCH 13 $QCTF%GTVKƓGF9QTNF%NCUU ISSUE DATE: JUNE 12 1EWNQRNCUVKE5WTIGQPU This year, Crain’s Cleveland Business will single out 20 up-and-coming professionals who haven’t turned 30 yet. While their names might not be top of mind and they likely 5GTXKEGUKPENWFG haven’t made their first million yet, there’s „ no denying these young professionals are making a mark on Northeast Ohio. „ „ Do you know a 20-something we should „ know about? Maybe he or she has started an „ interesting company or is already disrupting „ their field for the better. Or perhaps he or she has already made an impact through „ their philanthropic or civic involvement. And more This year’s class of Twenty in their 20s will be profiled in an editorial feature in Crain’s Cleveland Business. PAGE 8 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS Opinion

From the Editor Immigrant’s tale extends to workplace

My friend could be an employee at any of our businesses. She’s dependable, exceeds expectations, always helpful. And she is an immigrant. Recently, she headed out for her lunch break at her usual spot, a food court downtown, because it is quick and conve- nient. But something was di erent this day. As she picked up her order, another food court customer looked at her and asked, “Hey, are you Iranian?” She isn’t, as though that matters. But she froze, unsure how to react. “I thought it was a weird question,” she posted later that day on social media, “but I look ethnic and I am often mistaken for Ital- ian or Greek, so I didn’t think much about it.” Elizabeth When she began to leave, her questioner McIntyre left no question that his intent, along with that of another customer, was bigotry. ey began shouting obscenities at her. “Go back home!” is probably the most sanitized statement I can repeat. My friend Editorial got out of there, fast. “I felt super embarrassed and just kept my head down and walked away,” she wrote on Facebook. She returned to work and tried to forget the incident, but that wasn’t so easy. Our inclination might be to forget it, too; to chalk it up to two idiot bigots hanging out in the mall. Toby talks But that’s too easy. My friend’s story is important for employers and coworkers Cozying up with President Donald Trump poses some chal- “I think the important thing is that everybody gets an oppor- to hear because she could be the person sitting next to you or lenging optics for any brand. Just ask Uber CEO Travis Kalanick, tunity to express their opinion and there’s been lots of protest, outside your oce door. Or you, for that matter. who resigned from the president’s business advisory council and I think that’s ne,” Cosgrove told reporters last week after We talk about the importance of workforce diversity in all of amid an uproar from his employees in the wake of the presi- his address. “I think our opportunity is to be at the table and its forms, and we celebrate it. But we also must defend it. dent’s controversial travel ban. give our input directly to the people that are involved” My friend is from Eastern Europe. Her family came to the Cleveland Clinic CEO Dr. Toby Cosgrove has received con- United States in the early 1990s seeking a better life. Her par- siderable criticism for his organization’s decision not to aban- ents worked full-time jobs in the day and cleaned oce build- don plans to hold a fundraiser at Trump’s Mar-a-Lago resort, as ings at night, saving their money. My friend and her sister it had done in years past, in the wake of the ban. e ban, an- Global edge stayed with relatives for several years until they, too, could nounced in late January, directly a ected one of Cosgrove’s It’s no secret Global Cleveland has grappled with relevance come to be with their parents and join in the American dream, own employees. All the while, Cosgrove — who had been a top in recent years. In fact, before Joe Cimperman took the helm, along with their U.S.-born baby sister. contender to head the Veterans A airs department in the new dysfunction might have been the more appropriate term to de- ere has been much discussion and debate in recent administration — continued to meet with Trump alongside scribe the talent attraction nonprot. months about refugees and immigrants, extreme vetting and other business leaders. Last week, however, a new initiative brought forth by Global temporary immigration bans. About how best to keep America ere’s something to be said about having the president’s ear, Cleveland and the Flashstarts business accelerator is just the safe and, at its core, still America. which Cosgrove clearly does. Caving to critics and severing that sort of entrepreneurial thinking we need more of in Northeast ere is nothing wrong with healthy debate. But my friend’s relationship to save face politically or prevent a few bad head- Ohio. e two organizations announced they’re working to- experience is evidence that this national conversation isn’t al- lines would be a disservice to the Clinic, the U.S. health care gether to create what will be called the Flashstarts Global Entre- ways healthy. Sometimes, it’s hazardous. She is harassed on her industry and Northeast Ohio. preneur-In-Residence program. lunch break because she is … di erent? Because she has an ac- Talking with reporters after last week’s State of the Clinic ad- e program aims to recruit foreign entrepreneurs who cent? Because she looks like she might be, what, an Iranian? A dress, Cosgrove acknowledged he voiced his displeasure to the would be interested in starting companies in Northeast Ohio Muslim? A terrorist? All that from her dark hair and slight accent? administration regarding the travel ban. Still, until those re- while working part-time for a local university. A university part- Unfortunately, we are in what author Pankaj Mishra rightful- marks, Cosgrove had been relatively mum regarding his con- nership is expected to be nalized in the coming months. ly calls “the age of anger.” And angry — and fearful — bigots versations with the president. e most enticing piece for those recruits? An H-1B visa — have the potential to do much harm. Even if it is not something e Clinic’s actions as an organization — and particularly one that isn’t a ected by a cap that limits how many of them are your family has experienced, perhaps someone in the family of those of its sta — spoke volumes, particularly the vocal sup- given out each year. co-workers has. port for the prompt return of Dr. Suha Abushamma, the Clinic Flashstarts CEO Charles Stack told Crain’s the university And it just can’t stand. Not in the oce. Not in the food court doc caught in the ban. partner would employ the entrepreneur for at least 20 hours a in the mall. Not anywhere. We cannot be silent. at’s a mes- Assuming the president can start tackling major policy issues week. ey could teach entrepreneurship classes, mentor stu- sage I hope is proactively delivered, and modeled, from the top rather than “Saturday Night Live” or e New York Times, Cos- dents or even help the university recruit international students. of every organization that employs our strong and diverse grove’s voice could prove particularly useful. ere’s plenty of Today, America is grappling with what role it should play in Northeast Ohio workforce. work to be done on the health care front as the Republican-led the global economy and whether those from foreign nations “It’s easy to ignore the situation until you are the target of the government looks to unwind the A ordable Care Act. And giv- should be given the opportunity to pursue the American dream. hatred,” my friend wrote with grace and courage on her Face- en Northeast Ohio’s reliance on health care as a driver of the It’s heartening to see two Northeast Ohio organizations work- book page. “We need to unite together against this type of be- economy, it’s critical someone with our region’s interest in ing to make that a possibility for some of the brightest minds havior because, honestly, if it can happen to me … it can hap- mind is at the table. abroad. pen to anyone who looks, talks or just acts a little di erent.”

Publisher and Editor: Elizabeth McIntyre ([email protected]) Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Managing Editor: Scott Suttell ([email protected]) Cleveland, OH 44113, or by emailing [email protected]. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes. Sections Editor: Timothy Magaw ([email protected]) CLEVELAND BUSINESS Sound o : Send a Personal View for the opinion page to [email protected]. CLEVELAND BUSINESS Contact Crain’s: 216-522-1383 Please include a telephone number for verification purposes. CRAIN’S CLEVELAND BUSINESS | FEBRUARY 20 - 26, 2017 | PAGE 9

Help us Block Pediatric Personal View Cancer Clean energy revolution AND SUPPORT CLEVELAND CLINIC o ers jobs, opportunity CHILDREN’S By DAVID ABBOTT, ELLEN ALBERDING ing in clean energy locally. and JULIA STASCH Across the country, the clean energy sector provides well-paying employment for millions of Americans. In As the new administration in Washington promises the Midwest alone, clean energy jobs are expected to to champion the growth of fossil fuels, progress on grow at a rate of 4.4% this year, almost nine times as clean energy might seem stagnant at best. fast as the long-term national average. But at the state level, the advancement of clean en- Ohio is not the only Midwest state seizing this op- ergy still serves as a practical, bipartisan solution to portunity. In December, Illinois and Michigan both UOTZNKcMNZ elkandelk.com/weakstuff people’s everyday needs. approved bipartisan deals to grow clean energy. Illi- Despite the federal government’s apparent deter- nois Gov. Bruce Rauner signed a compromise that re- mination to disengage on this front, Illinois, Michigan pairs the state’s clean energy standards while keeping and Ohio — Midwestern states led by Republican gov- valuable nuclear plants open, a move that will gener- ernors — are taking steps to ensure that families have ate $15 billion of investment in clean energy. And access to reliable energy, cost-e ective options, and Michigan clean energy advocates and utilities came cleaner air and water. together in a bipartisan manner, with active support Northern Ohio’s Premier LLC In Ohio, Gov. John Kasich took a stand for economic from Gov. Rick Snyder, to revamp the state’s clean en- Air Charter Service development and clean energy, carving a di erent ergy policy for the rst time in eight years. AIR CHARTER SERVICE path than what’s emerging in Washington. He con- It’s clear that clean energy is on the ascent. It already AIRCRAFT MANAGEMENT cluded 2016 with a veto of a bill that would have e ec- costs less to build new solar and wind plants than it tively frozen new clean energy development in Ohio, does to build a natural gas plant in some parts of the thus arming the integration of clean energy and e- country. And Fortune 500 companies that use the ciency standards into our energy future as a crucial highest proportion of renewable energy consistently economic initiative that transcends party lines. have better nancial performance than their competi- e bill he rejected would have weakened the state’s tors. clean energy goals and made compliance with renew- States that seize the energy transition will have a able standards voluntary for the next two years, while competitive edge for job creation and economic de- increasing costs on customers. Instead, the now-re- velopment. Ohio’s history as a seat of American indus- newed standards require Ohio utilities to generate trial innovation is long — companies like Goodyear, 12.5% of their energy from wind, solar and other re- Dow Chemical and Owens-Corning all started in the newable sources by 2027 and cut power usage via e- Buckeye State, and the governor clearly recognizes the ciency programs by 22% by the same year. opportunities of the clean energy revolution. e state Providing a unique private travel e governor’s decision rested on the economic legislature would do well to join Kasich’s support for experience focused on benets that clean energy provides to the state, and he clean energy lest they risk putting the state at a com- had the evidence behind him. e 2014 energy e- petitive disadvantage. Safety, Service and Professionalism ciency programs alone created more than 14,000 jobs In Ohio and in other states across the U.S., policy- and increased state income over $1.2 billion. Ohio makers and investors can seize the many opportuni- 10, 25 and 50-hour Jet Cards available ranks second in the Midwest in clean energy jobs with ties clean energy o ers to bolster regional economies, over 100,000 employed. provide stable jobs and social services, and prioritize Complimentary In-Flight WI-FI “Ohio workers cannot a ord to take a step backward public health and safety into the future. Regardless of from the economic gains that we have made in recent decisions made in Washington, a state-led clean ener- www.FlySkyQuest.com • 216-362-9904 years, and arbitrarily limiting Ohio’s energy genera- gy revolution reminds us what prudent public policy [email protected] tion options amounts to self-inicted damage to both can — and should — look like. our state’s near and long-term economic competitive- ness,” said Kasich. Abbott is the executive director of the George Gund In a letter applauding the decision, companies like Foundation. Alberding is president of the Joyce Nestle and Whirlpool stated that renewable energy Foundation, which promotes the vitality of the Great and energy eciency standards help them save mon- Lakes region by supporting clean water and clean energy. ey, stay competitive and avoid energy price volatility. Stasch is president of the Chicago-based John D. and EXCLUSIVE VENUES • PERFECT MENUS With renewed market certainty and predictable poli- Catherine T. MacArthur Foundation, which supports cy, Ohio is encouraging businesses to continue invest- climate solutions in the United States, India and China. EXECUTIVE CATERERS – EXCLUSIVE CATERER FOR CLEVELAND PUBLIC AUDITORIUM AND CONFERENCE CENTER Web Talk

Re: Buses and Public Square Re: Four terms for Jackson?

This is really embarrassing and wildly misguided. Regarding Crain’s recent editorial, “Mayor for life?,” it We’re going to pay a $12 million fine just because of seems like Cleveland’s best mayors have been the mayor’s personal preference for not running “uninspiring.” They don’t grandstand. They work buses on Superior Avenue through the square? No hard. They are fiscally responsible and they hire safety benefit, negative economic eect, negative good people. If these are bad qualities, then Mayor CLEVELAND PUBLIC AUDITORIUM transit eect. Oh, and we’ll probably be ineligible for Jackson is guilty as charged. He has presided over & CONFERENCE CENTER (federal transit) grants as long as Superior is closed the great recession, and Cleveland stayed fiscally CONTACT OUR EVENT PLANNERS TODAY TO EXPERIENCE to buses. Combined with a lack of state and city sound through that (not all Rust Belt cities could do ONE OF CLEVELAND’S MOST ICONIC VENUES budget room, you can say goodbye to anything that); the building boom downtown, and the return transformative with regard to Cleveland streets, to residential living in the city. The neighborhoods

buses or rail. — Ronnie McGill and schools are long-term fixes, and he wants to TM stay to continue these long-term fixes. I’m glad he The opening of the route is not a safety issue. The is running. Hopefully, there will be others who will 440.449.0700 • [email protected] result would not be any more of a hazard than it eventually step into his shoes at some point in the WWW.EXECUTIVECATERERS.COM ever was. This is politics at its worst. — Randall Frye future. — Vic Voinovich PAGE 10 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS The Dish: Susan Condon Love Burntwood Tavern continues its expansion run In just six years, the rustic-with-a- But it was time for a break from Cuyahoga Community College, modern-vibe Burntwood Tavern — Susan Condon Bravo Brio. thinks that Burntwood’s success is born from an almost spur-of-the- Love is a “I was tired of traveling,” said Adams, based, in large part, on the changing moment decision during an exercise freelance the father of ve children with his wife, model for restaurants. run in Chagrin Falls — is one of writer who was Michelle (the “M” of M Italian). “Once upon a time, the restaurant Northeast Ohio’s most successful an editor and anks to his work with Bravo industry was dominated by franchis- and rapidly expanding restaurants. writer at The Brio, Adams, who is originally from es, chains and big-box restaurants,” In recent months, the ninth Burnt- Plain Dealer, Ashtabula County and has lived in he said. wood Tavern location opened, at The Las Vegas Review-Journal, Columbus, and his wife fell in love According to Hu, owners used to Crocker Park in Westlake, and the the Savannah (Ga.) Morning with Chagrin Falls and wanted to use a very speci c formula to decide restaurant’s management group, News and The Annapolis Capital. stay. if they would open in an area. at Chef Art Pour Restaurant Group, an- “I planned on taking the summer formula included counting the num- nounced plans to build its rst out- o and then starting a dierent career, ber of households in a 2- to 5-mile of-state Burntwood Tavern, in North Burntwood Tavern locations. maybe in selling real estate,” he said. radius, determining the disposable Naples, Fla. In addition, CAP found- “ere’s a lot of energy, passion One day, Adams started o on his income in those households and ed and manages M Italian restaurant and experience,” he said. “at’s the regular workout run. counting the number of restaurant in Chagrin Falls. formula.” “But this time, I turned left instead seats in that same area. By most business models, that is a It all started in March 2010, when af- of right on my normal route,” he said. Burntwood Tavern founder Bret “With the proliferation of indepen- very rapid growth. e success rests ter 20 years in the restaurant and hos- “All of a sudden, I saw this big bill- Adams says his company has a dent, chef-driven restaurants in the squarely on the relaxed shoulders of pitality industry, Adams decided he board about a fully equipped restau- simple formula for success. last 10 years, the matrix has tended to Bret Adams, 44, Burntwood Tavern was ready for a life change and quit his rant for sale. I stopped immediately.” (Susan Condon Love for Crain’s) fall apart,” said Hu. “People are will- founder and CAP chief executive o- management position with the Bravo After calling some friends, includ- ing to drive if they hear of a great cer. He credits the popularity of the Brio Restaurant Group, which operates ing designer Chris Kalinyak, for their fail within the rst year. And nearly restaurant opening up. at’s why restaurants to site locations, timing, restaurants across the country. He input, Adams cashed in his Bravo 80% close before their fth anniver- you are seeing the big-box restau- intuition, nding the right sta and started his restaurant career while still Brio stock and took the plunge into sary, according to CNBC. Often, the rants starting to close.” selecting good core administrators. in school, earning a degree in account- restaurant ownership. reason is simply location. Burntwood, and other unique e backbone of Burntwood Tav- ing and hospitality management at Co- e $150,000 investment into the “We have been very lucky in our restaurant groups, such as Melt Bar ern’s continued growth is simple, Ad- lumbus State Community College. He rst restaurant in Chagrin Falls now selection of locations,” said Adams. and Grilled, had good timing, Hu ams said, settling back in a windowed spent much of his time at Bravo Brio translates to a restaurant group that “But really, the backbone of the busi- said. conference room during an interview working with his mentor, Rick Doody, earns between $36 million to $40 ness has to be to serve the guests. “It is the right product at the right in the CAP oces in Chagrin Falls. the company’s chairman and founder. million annually, he said. “It’s also been a huge asset to un- place at the right time,” he said. Reclaimed wood and old metal barn “He gave me the tools to be suc- Adams realizes he has beaten the derstand the numbers,” he added, Adams credits his success to a core doors dominate the oce, just as at cessful,” Adams said. odds: About 60% of new restaurants referring to his accounting degree. administrative sta of six, each of While intuition on interior design whom “love their areas of expertise.” (“Keep the core decor elements the ey help support the success of the same, but give each restaurant its business that now employs some 650 own personality”) and location might people. account for continued success, Ad- Adams does have an end-view to SAVE THE DATE! ams also had a simple goal with the the expansion. restaurant’s price point. “We are looking at one or two more “We wanted to accommodate those (restaurants) in the Cleveland area, wanting something one step up from and maybe three or four in North Na- Applebee’s, but not as high up as, say, ples.” a Ruth’s Chris Steak House.” At that point, he said, CAP is going Finding that price niche, he said, to just maintain and operate its exist- FAMILY was key. ing locations. Michael Hu, dean of the hospital- “We are going to enjoy the mo- BUSINESS ity management department at ment,” Adams said, smiling. FORUM MAY 3, 2017

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MARKETING AND CREATIVITY

influence at Cleveland-based agency abandoned Twitter or that they will.” Adcom. “As a culture, we’re more re- When it comes to social media, the Can Trump active to visuals. Facebook and Insta- discussion shouldn’t necessarily fo- gram have upped their game with cus on the platform but rather a busi- advertising and allow you to drill ness’s overall strategy, according to down a lot deeper.” Todd Morgano, a senior vice presi- These days, many brands have dent with Cleveland-based Falls make Twitter moved the management of their Communications. Twitter, in particu- Twitter accounts in-house, whereas lar, is good at establishing thought five or six years ago much of that leadership within a particular sector work was farmed out to agencies. or other B2B purposes. great again? That doesn’t mean it’s worth ignoring “It all goes back to what this partic- — and marketers stress that Twitter ular channel can do for my business should still play a role in a company’s strategy. It’s important to always look overall outreach efforts. through that lens — not just jumping The platform’s earnings are off, and “I’d argue Twitter’s relevance re- on whatever platform is hot,” Morga- mains high. The good news is that no said. brands are pondering its relevance they are in the news every day, be- Several local institutions have cause every time he tweets, that be- been lauded for their uses of Twitter, By TIMOTHY MAGAW en to be much more attractive vehi- comes news. But you can get that in- the most notable being the Cleveland cles, particularly for paid reach, given formation everywhere outside of Clinic and the Cleveland Indians. [email protected] their steady user growth. Twitter,” said Dominic Litten, chief The Clinic, for one, has used Twitter @timmagaw Early last year, eMarketer, a re- marketing officer for Westlake-based to push out content that positions its search firm, forecast continued Budget Dumpster, a tech startup that docs as experts in their fields. The resident Donald Trump’s growth of the share of Twitter’s social facilitates dumpster rentals. “You Tribe’s account, known in particular love affair with Twitter is network usage, but dramatically tem- don’t have to be a user to see what for its snark, has worked well as a no secret. In 140 charac- pered that assessment last August. It the president is saying. It’s almost sounding board for fans — even the ters or less, the Com- then said it expected Twitter would like a catch-22. Everyone knows most critical ones. mander-in-Tweets — as capture 28.1% of U.S. social network about Twitter, but you don’t have to “People go on there sometimes Pmany have characterized him — has users in 2016, a decrease from 2015. be active on Twitter to get that out of just to complain,” Litten said. “It’s im- used the platform to pitch his poli- Also, eMarketer expects Twitter’s the system.” portant for brands to manage that cies and admonish his critics. share to continue to decline through Bottom line? Relevance doesn’t process and interact with customers, The president’s tweets often be- 2020. The shift is due to other plat- equal revenue, and that’s a troubling but it’s certainly less sexy than it’s come headlines themselves, and forms like Instagram and Snapchat sign for brands looking to invest their ever been.” marketers and brand managers have siphoning away Twitter’s prospects. time and money in Twitter, accord- Speaking of complaints, the presi- wondered whether Trump’s proclivi- Meanwhile, from 2015 through ing to Litten, who before joining Bud- dent has certainly taken some com- ty for Twitter would result in a bump 2020, eMarketer expects Facebook’s get Dumpster spent time at Razorfish panies to task on Twitter, opening an in active users, and thus relevance, share to slip only marginally from and Rosetta. entirely other debate when it comes for the nearly 11-year-old social me- 90% to 89.2% and Instagram’s to grow However, Twitter’s troubles, ac- to the use of Twitter by brands. dia platform. So far, at least according from 31.9% to 46.6%. (Facebook, it’s cording to Dix & Eaton’s Lisa Zone, Trump’s already put Nordstrom, to its latest earnings, the Trump worth noting, bought Instagram for are a bit overblown. She said the Chevrolet and Boeing in his digital bump seems to be as elusive as Hil- $1 billion in 2012.) company’s obstacles are simply part crosshairs. Trump tweets have the lary Clinton’s emails. Those figures are certainly more -al of the maturation process and that potential to move markets, and Twitter’s revenue for the fourth luring for advertisers. Plus, the Insta- Facebook — Twitter’s elder by only brands, especially those with a strong quarter of 2016 hovered at $717 mil- gram and Facebook platforms are two years — went through the same national footprint, should have some lion, up only 1% from the like period more video-friendly, which consum- growing pains. sort of action plan in place if they ex- in 2015 and well below analyst ex- ers tend to respond to more favorably. “The companies I am familiar with pect to upset the president in some pectations. Also, the company’s ad- Progressive Corp., for instance, last heavily rely on Twitter as a key social way, experts say. vertising revenue — which makes up week unveiled a new Facebook-cen- platform,” said Zone, a managing di- “If you’re going to make some sort the bulk of its overall revenue — fell tric campaign it created in-house with rector at Dix & Eaton, a Cleve- of announcement about jobs or ex- for the first time since the company an assist from Facebook’s team. land-based communications firm. pansion or anything that doesn’t went public. Those aren’t heartening “There is just more leeway to ex- “You saw that as part of the Super align with the protectionist approach numbers for prospective advertisers. press some artistry in there and to Bowl. There are more platforms for he’s taken, I think you should have Moreover, other platforms like catch people’s attention,” said John brands to spread their message your head on a swivel,” Znidarsic Facebook and Instagram have prov- Znidarsic, senior director of social across, but I don’t sense any have said.

Crain’s Illustration by David Kordalski

FILM FESTIVAL - Page 12 | Q&A - Page 13 | ADVISER - Page 14 PAGE 12 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS MARKETING AND CREATIVITY Film fest campaigns take cues from fans By JUDY STRINGER low viewers. ey got involved in CIFF 41: national or international causes. clb [email protected] ey joined local committees, clubs By the numbers or organizations. ey wrote letters Although Paris is e City of Lights, and raised funds. When: March 29 through April 9 organizers of the annual Cleveland “It is just the biggest reward we get Where: Tower City Cinemas International Film Festival (CIFF) as a sta when we hear from our au- hope Cleveland can capture enough dience that they took something like Tickets: Starting March 10 for CIFF electricity to become the center of that away, took it back not only into members; March 17 for the general ideas and inspiration for 12 days — their own lives, but into their own public and then some. community,” she said. 190+: Feature films will be shown Last month, CIFF unveiled the Of three proposed themes reect- marketing campaign for its 41st run- ing this idea of impact and empower- 200+: Short films will be shown ning, which takes place March 29 ment, “the notion of illumination just 300+: Filmmakers and other guests through April 9, with a ashy and really stuck out to all of us,” Samples planning to attend bold departure from recent years. said. e 2017 campaign “Illuminate” Embracing a theme like illumina- 60+: Countries represented speaks very directly and literally to tion also gave DeWerth the opportu- 1,500: Anticipated crowd for the the projection of the lm on the nity to move in a dierent direction opening night film and gala screen itself, according to CIFF mar- with the 2,800 pieces of advertising keting and media director Debby and merchandizing that accompany 8,400+: Students participate in Samples, but is meant to be more the annual event. CIFF’s media literacy program, than just a play on words. In 2014, CIFF began designing the FilmSlam “ e word ‘illuminate’ a lot of festival messaging around the ap- times is associated with education, “Illuminate,” the Cleveland proaching 40th milestone. For the it’s associated with a sense of happi- International Film Festival’s 38th year, the theme of “ e Home 40-something, Samples is not afraid ness — which is a feeling that people marketing campaign for its 41st for Stories” highlighted the interna- the well for CIFF will dry up anytime feel at the festival — and with bring- event (top), is a pretty large tional avor of the festival, how it soon. ing things to life,” Samples said. “We contrast from its themes in past drew narratives from around the e organization is fortunate to rst want to entertain our audiences, years. Also shown are logos from world. e 39th festival’s tagline, have a dedicated fanbase who is but we really want to do everything in the 2014, ’15 and ’16 film “ e Home for Inspiration,” was more than happy to provide feed- our power to educate them along the festivals. more locally focused and led into the back. e rst festival took place in way, so it’s really about that educa- (Contributed photos) all-encompassing 40th theme, “Wel- 1977. tional component.” come Home.” And, she said, as long as CIFF con- More than 102,000 people attend- ment,” DeWerth said, and reinforces marketing campaign began during e three-year campaign used tinues to do its job, ensuring guests ed the 40th lm festival in 2016, the idea that the festival’s impact the 2016 CIFF, when she and her col- softer, more subtle coloring and line are entertained and enlightened — which included 408 screenings of lives beyond the 12 days of galas, leagues collected key words and drawings or sketches. e current about other cultures, about the topic full-length features and short lms screenings and forums. phrases used by audiences and lm- theme, by contrast, is “much more at hand or about the experience of and upward of 300 visiting lmmak- “ e light is actually coming to- makers and took note of the vibe of photographic.” the lmmakers themselves, for in- ers. ward the viewer as well as going the festival. “It denitely does have a little bit stance — audiences will have plenty Designed by Brittyn DeWerth of away, so it is almost like you are One of the predominant messag- more of a bold approach to really of ideas to share. Type Twenty Seven, the marketing coming into the festival and then es and moods during the event and make that separation from 40 to 41 “Our audience is such a big part of campaign for the 41st CIFF features gaining your experience and taking after was “this ripple eect,” she and moving forward,” she said. our festival that they really do have stark black and gold block lettering it out into the community,” DeWerth said, of how attendees were moved While it may seem challenging to ownership over it and they keep us and an image of bursting light, which explained. to action by the ideas and experi- create fresh and compelling themes going and wanting to make it better visually “suggests motion and move- Samples said development of the ences shared by the artists and fel- every year for an event that is now each year,” Samples said.

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17-0035 CRAIN’S CLEVELAND BUSINESS | FEBRUARY 20 - 26, 2017 | PAGE 13 MARKETING AND CREATIVITY Q&A: Je Charney Chief marketing o cer, Progressive Corp. A quick glance around Je in a lot of ways, but I also love to play Charney’s oce will tell you a lot fair. I love to out-create them, about Progressive Corp.’s chief out-think them and outmaneuver marketing ocer. There’s a them. If you’re not disruptive in today’s life-size guitar, a life-size cutout marketplace, you’ll get left behind. You might as well put milquetoast out of FloBron and, of course, a large there because nobody’s going to portrait of Progressive’s familiar notice. This ad specifically is cast of characters — from Flo to something people are already buzzing Babyman to the villainous Rate about on social because it’s di erent Suckers. But sitting on his co ee and says something more than just advertising in a lot of ways. table is what perhaps says the most about the bombastic How do you di erentiate yourself marketer: a large glass die and a from others in the industry? grenade (a deactivated one, of We operate as a network. We don’t course). run a marketing department. I run a network. We have this sitcom; Flo is “You have to be disruptive and at the center of the sitcom. We have don’t script her at all. We give her the industry, right? take risks,” Charney said. “We take risk — it’s calculated risk, but be all these characters. You don’t know situation, and then she’ll say We buy media inside the company. bold or go home.” them all as much, but there are rivals something like “sprinkles are for Other companies I was at, I’d call my Charney joined the Mayfield Village-based insurer in 2010. Before that, and foils, but it’s a hero's journey. winners.” Half the endings she comes agencies to buy media. But here I can the South Carolina native held executive marketing roles at Aflac, QVC There are protagonists along the up with. We surround that cast with walk down the hall 50 yards and see and even led his own experiential digital marketing and consulting way. That’s the core of the network, improv actors. If you’re an energy what the results of my e orts are. and there are many spino s and person like I am, you want to be That’s unheard of in the industry. It’s agency. Crain’s recently sat down with Charney to talk about the other campaigns. But nobody else around other people with energy. a beautiful thing for me to be able to secrets behind Progressive’s success and the challenges of remaining runs their department like a network. see where my content is going and relevant in such a fast-paced industry. The interview has been edited And arguably we have the No. 1 icon She’s a very in-your-face how well it is doing in the context of for length and clarity. — Timothy Magaw in the country right now with Flo, and character. How do you keep her it. We also have an internal creative she’s almost 10 years old. She’s fresh and relevant? agency (96 Octane) on the same way. In that ad, Flo is waiting for the fresh. She’s authentic. If you met her, She has a lot of people around her. floor, too. When I first got here, I said You didn’t do a Super Bowl ad but right time to speak. That’s how we you’d love her. We don’t lean everything on her. we had to build this thing. Talent will pushed out your new “Social are as marketers. We’re not going to That’s why we put these other come. We wanted to create pound for Etiquette” spot starring Flo on outspend anybody. We’re going to You say that Flo the character in campaigns out there. Other characters pound the best team in the country social media a few days later. Tell out-create them. many ways was shaped by the balance out her character. The here in Cleveland, and we are. It’s the me about your strategy. actor that portrays her, Stephanie network philosophy allows her to not most creative and strategic 100 Everything we try to do is zig versus You mentioned how insurance is Courtney. What’s so special about always be center stage. It’s like any yards in business. It’s a melting pot of zag. We’ll never do a Super Bowl ad. one of the most competitive what Stephanie brings to the sitcom. Sometimes the sitcom is really great talent, but we work at it. That’s not who we are, but we’ll push industries, especially when it character? about the main character or another How many people wouldn’t want to out our content when people are comes to advertising. What’s that She’s an improv actor. She is smarter, character. She doesn’t have to carry make history versus just sell listening. We put it on social the like? quicker than anybody because she the weight all the time. insurance? We definitely sell Tuesday after the Super Bowl after All those advertisers are good. I love has to be. We let her improv. A lot of insurance, but you can make history people had digested all the other being around people that make you the things we write for the The structure of your department with this brand in a lot of ways. ads. People listened in a di erent better. I love competition. I love to win commercials, but a lot of times we also is a di erentiator in the SEE Q&A, PAGE 14

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Adviser: D. Peter Hochberg Protect your creative assets — here and abroad Many companies invest a tremen- trademarks used with the same or men” of the trademark must be led. common foreign jurisdictions are dous amount of money in their vari- D. Peter similar goods or services. A trade- For goods, this could be a label, a pic- Canada, Mexico, China and the Eu- ous inventions and innovations that Hochberg is a mark attorney usually will conduct a ture of the goods or packaging show- ropean Union Intellectual Property make them unique in the market. partner in the trademark search to identify poten- ing the trademark. For services, the Oce. Foreign applications provide ese can include the products they Intellectual tial conicts. Finding none that specimen can include the trademark protection in those countries or juris- market or even the unique packaging Property would preclude registration, the at- used in rendering the services or in dictions where the ling occurred. or images that they use in the mar- Practice Group torney can then proceed to prepare advertisements for the services. U.S. trademark applications can also keting of their products. of Walter | to le the application online with the e trademark application is pros- be registered with the U.S. Customs e problem is that, unless these Haverfield LLP. PTO. ecuted in the PTO to determine if it and Border Protection to help pre- creative assets are properly protected It’s important to remember that can be registered. A key consider- vent the importation of competing with registered trademarks, the com- trademarks are valuable for protect- ation is whether or not there are any goods into the U.S. pany is vulnerable to being ripped o ing a trademark that is similar or ing more than just a product, as they identical or confusingly similar Once a trademark is successfully by competitors or losing its unique identical with their own trademark. also can be used to protect symbols, trademarks based on their sound, led, it’s important to continue mon- identity (also known as its marketing Reasons for registering trade- designs, cartoons and the like that appearance, meaning and commer- itoring activity involving possible edge). marks with the PTO include: the may be integral in dierentiating the cial impression — all in connection conicting trademarks by reviewing Trademarks, including service ability to use the trademark sym- product in the marketplace. Trade- with the goods or services with which weekly publications of the U.S. marks relating to the performance of bol; the constructive — even if not marks can also protect unique pack- the trademarks are used. Trademark Oce Gazette and using services rather than goods, are used actual — notice that the mark is aging that eectively brands goods, If the trademark prosecution is worldwide monitoring rms. to indicate that goods or services registered; access to federal district such as the pinch bottle for scotch. successful in favor of the applicant, For many companies, their ability come from a particular source. While courts for enforcement; and cre- Or the unique colors or shapes of the application is published for op- to legally protect their creative and many businesses use trademarks, of- ation of the foundation for foreign products also can be trademarked, position, a process that is similar to a marketing assets can mean the dif- ten they are not registered with the applications. such as those found in Life Savers trial, although it is done almost en- ference between success and failure. U.S. Patent and Trademark Oce Not every trademark can be regis- candy. tirely by paperwork with a possible Fortunately, with the help of legal (PTO). One reason is that it is not felt tered. Trademarks often are catego- e trademark application process nal hearing. However, most opposi- counsel experienced in domestic to be necessary, and another is that rized as imaginative (such as coined is relatively simple and inexpensive, tions are settled. and foreign intellectual property ap- there may be a notion that the regis- words, i.e. Kodak, and unusual sym- often costing about $275 per class. Foreign trademark applications plications and enforcement, it is pos- tration process can be expensive. bols), descriptive and generic, which To qualify for a trademark, the item based on the U.S. application can be sible to keep would-be competitors However, many business owners cannot be registered. must either be in use or there must easily led provided the foregoing from creating copycat products that would be upset if they found that a To register a trademark, it should be a bona de intention to use the foreign ling is done within six could interfere with successful mar- competitor or other third party is us- not be “confusingly similar” to other trademark in commerce. A “speci- months of the U.S. ling date. e keting campaigns.

around the table trying to crack the from Facebook that work best? creative, but it works on their model. What would be your message to code. The best got better. Facebook Short bursts of things. It’s an ADD an aspiring marketer? Q&A knows their medium best, and we world. Things that are quicker to the What’s the hardest part of your You can make history, especially if CONTINUED FROM PAGE 13 know our content best. They wanted point are what matter. If you lose job? you’re an aspiring marketer here. If to work with Flo. We try to find them in the first second or two, you Keeping your brand relevant and you have the idea, we want you to The Facebook collaboration you people with like interests and work don’t have them. It seems fairly continue living that progressive way. execute it. This is the best place for recently launched is unique given with them. I’m amazed nobody has logical, but there’s an art and science I look at that Progressive sign every the right person, the worst place for that you worked directly with the raised their hand like we did. to it. A lot of marketers are so proud day, and wonder how am I being the wrong person. It’s a very fast social media platform. Why is that Wouldn’t you? We like to be first of their art, but they don’t know the progressive today? It’s an arms race treadmill, and it continues to go up. If noteworthy? movers on all digital. science. Facebook knows the science today. It’s a battle, and we have to you walk in that door, you better be We put an Octane team beside these backwards and forward, upward and win that battle. progressive as a marketer. guys. The best creatives were What are some things you learned down. It’s not the thing I find most

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Estimated impact SANDUSKY The Force Sports Parks are expected CONTINUED FROM PAGE 1 to have the following annual economic impacts by 2020: e complex opens with a two-day $56.9 million: Additional income for St. Patrick’s Day baseball tournament Erie County on March 18, and 29 more youth events are already posted on an on- $1.7 million: Admissions and bed line tournament schedule that runs taxes through the end of August. 900: New jobs, including those at the Will Spence, the regional manager sports complex of Sports Force Parks, expects the complex to host 39 tournaments in its  rst year. e majority will be two- Dollars and sense or three-day weekend events, but some will last  ve or six days, de- e public-private partnership be- pending on the sport and the num- tween Cedar Point and Sports Force ber of participating teams. Parks is a simple one, McClure said. “It will be the premier park in the “On the business side of the deal, Midwest,” Spence said. “It’s like noth- it’s all about selling tickets,” the Ce- ing else. Traditionally, when you see dar Point GM said. “We own the land. a lot of these  elds, they’re either dia- Sports Force operates the facility.” monds or rectangle baseball  elds or Each tournament participant gets softball  elds. We’ve gone to multi- a free ticket to the amusement park use  elds. Each is uniquely based on and waterpark. at, of course, leads the sport.” to family members purchasing pass- e park has 12 synthetic turf es, and adds to Cedar Fair’s al- baseball  elds, 11 softball  elds, and ready-robust bottom line. eight full-size  elds for soccer and la- Spence, the Sports Force Parks re- crosse. e complex also features an gional manager, said Cedar Point is 18-hole miniature golf course, a also the complex’s food and beverage promenade with concessions and vendor. merchandise, a ropes course that It isn’t a novel concept. soars 25 feet in the air, a trampoline e ESPN Wide World of Sports park and two playgrounds. complex outside Orlando, Fla., has Spence said the targeted age group been open for 20 years. Cedar Fair’s is 8 to 18, but there are enough dis- top executive, CEO Matt Ouimet, tractions for toddlers and adults, too. spent 17 years as a Disney executive. “Our focus is to get people to the “We’ve seen that success,” McClure area and take advantage of the area,” said of the Wide World of Sports facili- he said. ty. “We’ve seen those complexes that Clockwise from the top, the Sports Force Parks at Cedar Point Sports Center features, among many other opened around the country. e land Spreading the wealth attractions, 12 baseball fi elds with synthetic turf, a ropes course on which participants can soar 25 feet in was available, and we saw the chance the air and two playgrounds. (Contributed photos) to make this happen.” Shortly after Eric Wobser left his If the Sandusky complex is as suc- job as executive director of Ohio City accurate.” tination that people come to for a current annual total, plus $56.9 cessful as the projections, the groups Inc. to take over as Sandusky’s city at’s one of the reasons he sees number of reasons,” said Wobser, a million in annual spending and probably won’t be  nished. Wobser manager in 2014, McClure, Cedar the development of Sports Force Sandusky native. “We know Cedar $1.7 million in admissions and bed said there’s a study being undertaken Point’s GM, wrote him a letter con- Parks as critical, since the complex Point is a major driver. Waterparks taxes. that is looking at the possibility of an in- cerning a proposed admissions tax will attract thousands more visitors and the islands are a major driver. “As we look to diversify our econo- door complex that would sit next door increase. In it, McClure said taxes to the area (a projected 111,000 an- is is going to help us get more peo- my, that’s an e ect we’re looking for,” to Sports Force Parks. Cedar Point’s Ex- paid by the amusement park repre- nually), and it will do so during the ple to the area in a positive way.” Wobser said. “We want to be a desti- press Hotel is adding rooms for the 2017 sented more than a one-third of the “shoulder seasons” — the spring and And, Wobser hopes, more busi- nation, which helps us attract more season, and a tower of rooms at Hotel city’s annual tax receipts, and Cedar fall months when Cedar Point isn’t as nesses. restaurants and businesses to the Breakers is scheduled to open in 2018. Point was responsible for more than busy, or is closed. The groups estimate that Sports area. Maybe someone will want to “ at was one of the foundations 98% of Sandusky’s admission taxes. “I think it’s incredibly exciting be- Force Parks will generate 80,000 an- bring a technology company here be- of the whole project — keep people Nearly three years later, Wobser said cause we pride ourselves on being a nual hotel stays by 2020, which rep- cause somebody boats here or wants engaged in the community longer,” those  gures are still “pretty destination, but we want to be a des- resents about 10% of Erie County’s to spend more time here.” Spence said. PAGE 16 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS AKRON Industrial leagues put Akron on hoops map

By RICHARD WEINER General Electric, formed the Nation- al Basketball League. [email protected] Akron became title town: Good- year won the league’s rst champion- Larry Brown was looking for some- ship, and Firestone won the next two. where to play basketball after he e Goodyear Wingfoots dropped graduated from the University of out of competitive basketball during North Carolina in 1963. Brown, who World War II, coming back into it af- would go on to fashion a successful ter the war was over. career in professional and college e NBL continued, however, and, coaching, asked his then coach, in 1949, merged with the failing Bas- Dean Smith, what he should do. ketball Association of America to “After I graduated from North Car- form the National Basketball Associ- olina, I was hopeful that I could play ation. Of the 17 original NBA teams, in the NBA,” said Brown. “(But) at ve that still play have direct roots to that time, the league didn’t give little the NBL and the local industrial guys much of a chance.” Chuck Taylor, namesake of the leagues: the Lakers, Pistons, Hawks, Brown was 5-foot-9, and though now-famous Converse shoes, was 76ers and Kings. e three BAA he was drafted by the Baltimore Bul- a member of the Firestone teams are now the NBA’s Knicks, lets, his college coach had another Non-Skids. This picture is from Warriors and Celtics. idea. Smith told Brown to go to Akron about 1918. (Firestone Archives) “If (the Wingfoots) had stayed to play for the Goodyear Wingfoots, playing in the NBL, one of the origi- at the time one of the top amateur cafeterias, housing (Goodyear nal NBA teams would have come basketball teams in the country. Heights and Firestone Park as exam- from Akron,” said Price. Brown came to Akron to try out for The Firestone Non-Skids take on the Goodyear Wingfoots during a 1937 ples) and newsletters, which report- But the Goodyear Wingfoots went the Wingfoots, his rst stop on the game at the Firestone Clubhouse. (Firestone Archives) ed on the sports teams and serve as a dierent route. way to his Hall of Fame career. He historical resources today. “When we came back into com- stayed and played for two years. Firestone Tire and Rubber Co. and team-building exercises, said histori- e point, said Smith, was to gath- petitive basketball, we went to the “It was a special time in my life,” he General Tire and Rubber Co. — were an Jerey Smith. Smith, who is on the er employees together outside of National Industrial Basketball said. doing the same. faculty of Lindenwood University in work. It was a natural progression to League,” said Price. e story of the Wingfoots and e earliest known photograph of St. Louis, wrote his University of Ak- invite competition from local com- Goodyear and four other industri- their competitors is the story of the a Goodyear Wingfoots basketball ron doctoral dissertation on the Ak- panies, and the industrial leagues be- al teams formed the NIBL in 1947. beginnings of organized basketball, team, an intramural squad, is dated ron industrial leagues. gan to spring up. Goodyear stayed in that league until from the National Association of In- 1914, according to Goodyear’s direc- Other businesses were forming the At rst, the spectators were not it became a part of the National Alli- tercollegiate Athletics, to the Ama- tor of national media relations, Keith same kinds of competitive teams distinguishable from the players, and ance of Basketball Leagues in 1961. teur Athletic Union, to the National Price. By about 1917, Goodyear, Fire- across the nation, said Smith, includ- families lled the stands. In the case Basketball players who needed to Basketball Association. stone General Tire and other Akron ing the steel mills of Pittsburgh and of the Goodyear Wingfoots and the retain their eligibility or weren’t in- Yes, like the NFL — and before companies competed against one Youngstown, automobile manufac- Firestone Non-Skids (the Non-Skid terested in the NBA played in the am- LeBron James made Akron synony- another in multiple sports in the Ak- turers in Detroit and many more in being the rst treaded car tire), bas- ateur leagues. At the time, said Price, mous with basketball — the NBA has ron Industrial Athletic Association. virtually every region of the country. ketball also was a chance to show the working for Goodyear actually paid origins in the Rubber City. “ere was a great deal (of orga- use of rubber as an athletic shoe sole. more than professional basketball. Fifty years before Brown began his Building teams nized sports) going on in a lot of plac- In a very short time, though, teams Plus, NBA jobs were hard to get. post-college basketball career in Ak- es, including Akron,” said Smith. started recruiting and paying outside ron, the Goodyear Tire & Rubber Co. e industrial leagues were a part “Company-sponsored sports were a players. In the case of Goodyear, Work and play developed an extensive intramural of a movement within the burgeon- part of a movement by these compa- players were oered jobs in the facto- athletic program for its employees. ing factory-based industries across nies to make workers’ lives better.” ries and oces in return for playing When Brown arrived in Akron, he Other Akron companies — including the country to engage employees in ose eorts included company for the company team for two years. was surprised he had to try out for About 20% of those players stuck the team, he said. with the companies, said Price, and “I packed my clothes, got a room in the teams included several future top a house in Akron with a widower and executives of Goodyear. tried out,” he said. e crowds expanded, according He made the team, which meant to Smith, and the companies built that he also got a job with Goodyear. baseball elds and basketball courts “During the season, we worked in to accommodate them. dierent departments around the % e 1920-21 Firestone team fea- company,” said Brown. “In the o- tured a skinny future shoe salesman season, we worked in the factory, * by the name of Charles Hollis learning how to build tires. en on “Chuck” Taylor. e cover of his biog- the weekends, we coached local kids raphy features a photo of Taylor, in their youth basketball league. I APY whose name graces the famed Con- had always wanted to be a high 1.30 verse shoes, in his Firestone uniform. school basketball coach.” Firestone was sold to Bridgestone Goodyear won the NABL title in Corp. in 1988. Nashville-based 1964, with a team featuring three 13-month CD Bridgestone Americas Inc. didn’t members of the gold medal-winning have anyone who could speak about 1964 U.S. Olympic basketball team: Firestone’s basketball teams. Brown, Dick Davies and Pete McCaf- frey, along with the Wingfoot’s coach, The seeds of the NBA Henry V. “Hank” Vaughn. We’re new in town & e Wingfoots also won the league During the next two decades, the championship in 1968, featuring rolling out the welcome wagon. basketball programs would develop Olympians Cal Fowler and Jim King, into what the sport looks like today — along with Vaughn. Visit the S&T Bank branch in Akron or call 330.664.2911 to get started. on the professional, amateur and Former NBA All-Star Adrian Smith collegiate levels. had also played for the team in 1961. 491 North Cleveland-Massillon Road, Akron, Ohio 44333 e teams played a schedule that Goodyear ended its team sponsor- included college squads and are ship in 1970, although the name con- credited with helping to found the tinues as a privately owned elite AAU National Association of Intercolle- team, most recently based in Las Ve- giate Athletics. At the same time, Ak- gas. ron industrial teams helped form the Brown credits his years in Akron core of the Amateur Athletic Union, with laying the foundation for his winning several national AAU cham- coaching career. He also maintains pionships from the 1930s through the emotional ties to the people and the *13 Month CD Time Deposit or IRA – Offer is only available at our S&T Bank Akron office located at 491 North Cleveland – Masillon Road, Akron, Ohio, 44333. This 1960s. area. special cannot be combined with any other offer and excludes institutional investors, brokered accounts and money for public funds. Minimum deposit requirement is $1,000. Maximum deposit amount of $1,000,000. Opening deposit must be new money to S&T Bank or Integrity Bank. New money is defined as monies that have not In the late 1930s, the national in- “When I got into coaching profes- been on deposit with S&T Bank or Integrity Bank – a division of S&T Bank within the past 30 days. Annual Percentage Yield (APY) assumes interest remains on deposit dustrial basketball leagues began to sional ball, it was always good to until maturity, and withdrawal of interest will reduce earnings. Promotional APY will not apply to existing time deposits that automatically rollover. CD will automatically morph. In 1936, the Wingfoots joined come to Cleveland and play the Cav- renew into a like term CD with rate offered at that time. CD Time Deposit - 1099 is produced in the year interest is paid. Penalty for early withdrawals could affect the the semi-professional Midwest Bas- aliers,” he said. “I got to see a lot of APY and could reduce the principal for these accounts. Offer can be withdrawn at any time. ketball Conference. e next year, 13 people I knew from back then. I loved MEMBER FDIC industrial basketball teams, orga- the people there. It’s a neat place, nized by Goodyear, Firestone and and I have a lot of good memories.” CRAIN'S CLEVELAND BUSINESS — FEBRUARY 20, 2017 — PAGE 17 CRAIN’S CLEVELAND BUSINESS | FEBRUARY 20 - 26, 2017 | PAGE 17 AKRON Canton firm stretches out to span Big River

By JUDY STRINGER [email protected]

A mile-long pedestrian pathway — soaring over the mighty Mississippi — opened last October, linking Mem- phis, Tenn., with West Memphis, Ark., and bringing to fruition a vi- sionary idea that was years in the making and gave a Canton company some well-deserved bragging rights. Ohio Gratings, a 47-year-old fami- ly-owned business, provided the 48,000 square feet of aluminum plank for the walkway surface and 82,000 square feet of fencing and handrail in ll for a grand total of more than 3 miles of grating materi- als. And it did so in less than a year. Supplied by Ohio Gratings, the mesh on the outside of Big River Crossing is more open for high visibility of the river. The mesh between the “e amount of grating for the walkway and railroad tracks (above right) is tight to keep people from climbing it and protect pedestrians from debris. (Contributed photos) time of the project was a huge chal- lenge that they were able to meet,” ing for a lightweight ooring materi- boardwalk itself cost $18 million, ac- grating, they wanted high visibility pedestrian bridge spanning the Mis- said Seth Norment, assistant project al, Apperson said, but it also had to cording to Apperson, and was par- through it,” he said. “is is like 85% sissippi, Apperson said the project manager at OCCI Inc., the Missou- be strong and able to support an am- tially funded by a federal Transporta- open area.” allowed Ohio Gratings to showcase ri-based contractor that built Big Riv- bulance or emergency vehicle if the tion Improvement Generating Mesh on the river side fencing is “a its capabilities, especially in custom- er Crossing, now the country’s lon- need arose. Economic Recovery grant. Ohio little more open,” closer to 90%, Ap- izing its products “for stringent re- gest rail-bicycle-pedestrian bridge. In addition, the walkway surface Gratings declined to provide the val- person explained, and only extends quirements.” OCCI converted the 100-year-old needed to incorporate a traction ma- ue of its part of the work. as high as the handrail to promote “We were able to optimize the Harahan Bridge’s dormant roadway terial, comply with the Americans e company, which employs uninhibited views of the Mississippi weight, the strength and the mesh to lane into a bicycle and pedestrian with Disabilities Act and be bicycle about 400 at four U.S. locations and River and city of Memphis. give them exactly what they needed path alongside an active railway. and high-heel friendly. at limits does all its manufacturing in Canton, Ohio Gratings also designed and to have in the open area and all these “e fact that Ohio Gratings could the size of grating openings so that provides a full line of grating prod- manufactured several gates — with other engineering constraints to sat- mass produce the product was what wheels can pass over smoothly and ucts, from sunshades and louvers to concealing locking systems — within isfy the railroad, the city, the engi- made them the right t for the proj- heels don’t get stuck. fencing and various grades of com- the steel mesh grating that mainte- neers and the public,” he said. “at ect,” Norment said. “ey also had to add fencing to mercial and industrial ooring. e nance crews can use to access the is what makes it a fun, interesting While it’s true the company had protect the (pathway users) from the grating can be found at airports, con- train tracks and special panels to ac- project for Ohio Gratings.” only a year to manufacture and deliv- trains, because it’s an active Union cert stages, data centers, parks, commodate junction boxes for light- e biggest winners, according to er the 130,000 square feet of grating Paci c Railroad right next to it. And wastewater treatment plants, nature ing, which was added to illuminate Ohio Gratings chairman David Bart- products, its connection to Big River there was a lot of weight to this fenc- preserves and oce buildings, the 1916 bridge. “We were able to de- ley, are the residents of Memphis, Crossing dates back to 2011, accord- ing and the posts associated with among other places, and on bridges velop some openings in the grating West Memphis and the surrounding ing to Ken Apperson, director of en- that,” Apperson said. and walkways across the country. panel themselves and reinforce them areas, who now have a new, more ac- gineering and product development Following three years of discus- For the Big Crossing project, the in a way that would maintain the in- tive and arguably more picturesque for Ohio Gratings. at’s when a re- sions and planning, Ohio Gratings in 11-foot fencing between the railroad tegrity of the mesh,” said Aristotle way to access both communities and tired Memphis engineer named October 2014 won a bid to supply not track and the walkway is a tight mesh, Zournas, product sales engineer for a key piece of a planned 10-mile Tweed Bryant, who was working on a only its 6-pound-per-foot, ADA-com- Apperson said, to keep people from Ohio Gratings. “We had to provide Main Street to Main Street trail. feasibility study, called the company plaint aluminum plank for the walk- climbing it and to prevent rocks or some custom solutions, so it was not “It was a grassroots project that is to inquire about its aluminum plank. way surface but also its galvanized debris from passing rail cars from as simple as just fencing.” really great for the citizens of Mem- Because of the bridge’s age and steel PressLock mesh for fences lin- striking walkers and cyclists. Beyond the cool factor of having phis, Tenn.,” Bartley said. “We are span, Bryant and his team were look- ing both sides of the bridge path. e “Even though it’s a close mesh been a major supplier to the longest proud to be a part of that.” REAL ESTATE CLASSIFIED Phone: (216) 771-5276 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Lynn Calcaterra E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

AUCTIONS FOR RENT BUSINESS SERVICES BUSINESSES Crain’s FOR SALE € FOR LEASE € C.W. JENNINGS INDUSTRIAL EXCHANGE Executive THINKING OF SELLING? Commercial/Industrial Global Industrial Consulting FREE MARKET ANALYSIS Truck Parking Lot Recruiter Construction • Acquisitions No Upfront Fees 27,608 S.F. See our listings at: Exporting • Financing CHIEF FINANCIAL OFFICER www.empirebusinesses.com Call: 216-431-6633 (855) 707-1944 [email protected] Hawken School (Gates Mills, 440-461-2202 OH) seeks a Chief Financial EXPERTS IN MOBILE APP THE LIST Officer. The PK-12, 1,265 student school has 5 campuses Solutions for Businesses on Apple, FOR SALE Top Patent and an endowment valued at FLYNN Android & Windows Platforms. nearly $55 million. ENVIRONMENTAL Please contact: 2,500 GALLON AQUARIUM Recipients Please contact: UST REMOVALS • REMEDIATION Viztek Software DUE DILIGENCE INVESTIGATIONS 440-972-0157 Greg Britton (800) 690-9409 www.vizteksoft.com [email protected] BUSINESS SERVICE OWNERS! OR SIGN UP FOR ONE OF John Clark Haul-My-Mess.com [email protected] OUR INDUSTRY NEWS Full Service Junk Removal Submit your business card to promote your service. for more details or to apply. LETTERS and Mini Dumpster Rental www.crainscleveland.com/ "We haul away your unwanted stuff" To find out more, contact Lynn Calcaterra at For daily on-lineupdates, sign up @ CALL TODAY newsletters 216-799-9911 216.771.5276 CrainsCleveland.com/Daily Recipient to relocate. 14’x 5’x 9’ tank located in Akron Send us your ad via e-mail... [email protected] [email protected] PAGE 18 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS

THETHE LISTLIST THE LIST OhioOhio CompanyCompany PatentsPatents Ohio Company Patents RankedRanked byby TotalTotal Patents Issued 2013-20152013-2015. Ranked by Total Patents Issued 2013-2015

THIS COMPANY/CITY TOTAL PATENTS PATENTS PATENTS THIS COMPANY/CITY TOTAL PATENTS PATENTS PATENTS YEAR WEBSITE 2013-2015 2015 2014 2013 YEAR WEBSITE 2013-2015 2015 2014 2013

Procter & Gamble Co./Cincinnati 1,209 383 410 416 American Greetings/Westlake 62 21 26 15 1 www.pg.com 21 www.americangreetings.com

Eaton/Cleveland 476 171 147 158 Lubrizol Advanced Materials Inc./Brecksville 60 21 26 13 2 www.eaton.com 22 www.lubrizol.com

Rockwell Automation/Mayfield Heights 399 152 126 121 Battelle Memorial Institute/Columbus 59 14 24 21 3 www.rockwellautomation.com 23 www.battelle.org

Ethicon Endo-Surgery Inc./Cincinnati 274 66 99 109 Saint-Gobain Performance Plastics Corp./Akron 57 18 24 15 4 www.ethicon.com 24 www.plastics.saint-gobain.com

Goodyear Tire & Rubber Co./Akron 260 97 77 86 Nanotek Instruments Inc./Dayton 55 23 24 8 5 www.goodyear.com 25 http://nanotekinstruments.com

Diebold Nixdorf/North Canton 181 70 43 68 Teradata Corp./Dayton 54 20 15 19 6 www.dieboldnixdorf.com 26 www.teradata.com

Cleveland Clinic/Cleveland 178 77 55 46 University of Toledo/Toledo 51 14 18 19 7 www.clevelandclinic.org 27 www.utoledo.edu

PPG Industries Ohio Inc./Cleveland 175 55 71 49 GE Lighting Solutions LLC/East Cleveland 49 17 22 9 8 www.ppg.com 28 www.gelighting.com

Parker Hannifin Corp./Mayfield Heights 156 58 50 48 Owens-Brockway Glass Container Inc./Perrysburg 41 23 12 6 9 www.parker.com 29 www.o-i.com

Case Western Reserve University/Cleveland 150 58 56 36 University of Cincinnati/Cincinnati 41 12 13 16 10 www.case.edu 30 www.uc.edu THE LIST THE LIST

OhioThe Intellectual Company Property Attorneys of Patents Ohio Company Patents Ranked by Total Patents IssuedIDE 2013-2015NTIFY, PROTECT ANDRanked by ENFORC Total PatentsE Issued 2013-2015216.781.1212 | walterhav.com YOUR INTELLECTUAL PROPERTY AT HOME AND ABROAD THIS COMPANY/CITY TOTAL PATENTS PATENTS PATENTS THIS COMPANY/CITY TOTAL PATENTS PATENTS PATENTS YEAR WEBSITE 2013-2015 2015 2014 2013 YEAR WEBSITE 2013-2015 2015 2014 2013

Ohio State University/Columbus 136 27 38 71 Invacare Corp./Elyria 39 13 18 8 11 www.osu.edu 31 www.invacare.com

Nordson Corp./Westlake 127 41 38 48 Devicor Medical Products Inc./Cincinnati 38 14 15 9 12 www.nordson.com 32 www.devicormedical.com

Emerson Climate Technologies Inc./Sidney 100 39 22 39 Ohio University/Athens 35 15 8 12 13 www.emersonclimate.com 33 www.ohio.edu

The Lubrizol Corp. (1)/Wickliffe 92 30 31 31 Babcock & Wilcox Enterprises/Barberton 35 9 11 15 14 www.lubrizol.com 34 www.babcock.com

Gojo Industries Inc./Akron 81 35 23 23 The Timken Co./North Canton 34 16 9 9 15 www.gojo.com 35 www.timken.com

First Solar Inc./Perrysburg 79 28 24 27 Kent State University/Kent 33 10 12 11 16 www.firstsolar.com 36 www.kent.edu

University of Akron/Akron 74 20 25 29 AtriCure Inc./Mason 33 8 11 14 17 www.uakron.edu 37 www.atricure.com

Bendix Commercial Vehicle Systems LLC/Elyria 69 19 23 27 PolyOne Corp./Avon Lake 31 9 12 10 18 www.bendix.com 38 www.polyone.com

Owens Corning Intellectual Capital LLC/Toledo 66 18 25 23 Steris/Mentor 29 13 16 NA 19 www.owenscorning.com 39 www.steris.com

Crown Equipment Corp./New Bremen 64 26 23 15 Velocys Inc./Plain City 29 8 10 11 20 www.crown.com 40 www.velocys.com

RESEARCHED BY CHUCK SODER

Source: U.S. Patent and Trademark Office; compiled by Ocean Tomo LLC, an intellectual property services firm in Chicago. (1) Does not include patents for Lubrizol Advanced Systems, which are listed separately.

makes sense to them,” Cropper said. Friends of Max Hayes, a community happen at the school board meetings aren’t ready for a non-minimum wage David Quolke, president of the group that supports the school. where members of the public could job straight out of high school. But that TEACHERS Cleveland Teachers Union, said im- Although he supports the ideas in hear what’s being discussed. e roles work-based experience can give them CONTINUED FROM PAGE 1 proving career prep education in the budget proposal, Colm’s issue would be non-voting because Burgess the technical and soft skills they need schools is critical, but he agrees the with them is that they’re high-level said the state wants the business lead- to earn a livable wage, he said. Burgess said this proposal was de- externship should be an option rath- ideas, instead of initiatives at the ers to be focused solely on job skills in- Joe Roman, president and CEO of signed to expose teachers to the jobs er than a requirement. building level. stead of “freelancing” into other issues. the Greater Cleveland Partnership, that are in demand in their area and At the district’s career tech schools, Beyond educators, companies Quolke said he thinks this propos- said the “directional objective” of the skills that those jobs require, so known as the Academies of Cleve- could nd an externship initiative al would be “window dressing” that bringing business and education clos- they can better share that knowledge land, externships for teachers al- challenging. Terrence Robinson, ex- wouldn’t have a meaningful impact er together makes sense, but it’s too in their schools. ready are being created so they can ecutive director of Magnet’s Early Col- in the classroom. Schools should fo- early to tell if these proposals are the Ohio Education Association presi- get real world experiences of what lege Early Career manufacturing cus more on creating relationships right way to do it. e workforce talent dent Becky Higgins said she considers they’re teaching, said Shari Obrenski, work-based learning program, noted with businesses and opportunities issue is critical in terms of growing the the proposal a “needless hoop” for the union’s third vice president for that even taking on traditional interns like internships for students, he said. state’s economy, Roman said. teachers to jump through, and she senior high and special schools. at can cause upheaval at a business. at kind of work-based experience Overall, Cropper said there’s a frus- couldn’t think of another licensed pro- relevance is important. e state’s other big proposal to for students is another focus of the tration because the budget proposal fession expected to do something like “ e concept in the right context is get more direct business-school in- budget. Proposals related to that in- shows a disconnect from what’s al- this. e Ohio Federation of Teachers’ valuable,” she said. teraction would be for local superin- clude giving students high school ready going on in the education com- stance is not as hard and fast: the union John Colm, president and execu- tendents to appoint three members credit for work-based experiences, munity. e state is in the process of thinks it would be ne as an option but tive director of manufacturing-fo- of the business community to their having school districts review their creating plans for the federal Every is problematic as a requirement. cused economic development group school boards in non-voting roles. plans for awarding such credit and Student Succeeds Act, but there President Melissa Cropper said the Wire-Net, has seen many of the pro- Burgess said this component was in- aligning pre-apprenticeships with seems to be no correlation between proposal doesn’t make sense for every posals in the budget in action at Max cluded to put business leaders and ed- the College Credit Plus program, that and the budget, she said. And teacher, noting the number of rele- S. Hayes High School. e school ucators in the same room in a public which lets students earn college even the parts of the plan she thinks vant workplace opportunities avail- provided externship opportunities way. School districts generally already credit in high school. are valuable, like making sure stu- able, as well as asking how it would for teachers this past summer and are supposed to have business adviso- Robinson said Magnet advocates for dents can get credit for experiences work for teachers of younger grades. has a pre-apprenticeship program ry councils, but Burgess said this would work-based learning experiences, outside of the classroom, are already It’s a “huge, huge overreach,” she said. for students in place, with more in put the conversation into “prime time,” which help students be college and ca- going on. It should be about expand- “Let teachers choose that if it the works. Wire-Net is part of the so to speak. e conversations would reer ready. Right now, most students ing those kinds of options, she said. PAGE 19 | FEBRUARY 20 - 26, 2017 | CRAIN’S CLEVELAND BUSINESS Source Lunch Jon Park sider Chairman and CEO, Westfield Bank Like most industries, running a successful community bank means adapting to change — and Jon Park has seen plenty of it. ¶ Park became chairman and CEO of Westfield Bank in intel 2010 after serving as president at the $1.2 billion-asset inMARKETING, ADVERTISING & EVENTS INSIGHTS. community bank in Medina County since 2000. From the impacts of the internet to the regulations imposed on the sector following the last economic downturn, Park has personally witnessed, and navigated, the myriad headwinds that have shaped today’s modern banking landscape. ¶ As Park looks forward on his 17th year with Westfield, Crain’s decided to sit down with the Today’s Tip: banking veteran to discuss how the business has changed and how he views the future of the Make your content industry under a new presidential administration. — Jeremy Nobile count. Quality over

Five things One of the biggest challenges in And there’s a sense today that quantity. banking these past few years has you have to adapt to all of it Favorite local craft beer? been the mountain of regulations. because customers expect that Barnburner, a Dortmunder-style lager What’s your sense of how the much more, even from a smaller from Lager Heads Brewing Co. landscape will look under the new bank, right? presidential administration? This all ups the ante in terms of the Hobbies I think there’s considerable upside speed of which you need to evolve Boating, skiing, biking and golfing for the banking industry and broader and transform to remain relevant economy. That all means strong and competitive in the business. You are probably hearing more and more What did you want to be as a earnings, growth upside and Today, you’re competing with other kid? economic expansion. An improved banks, but you’re also competing about “custom content” or “native.” A A farmer economy and job growth means with the non-banks and fintechs of sponsored blog in Crain’s e-newsletter or more lending opportunities. But the the world that are coming up with all What’s something people don’t biggest component for banks is the innovative alternatives to a native piece is a great way to engage know about you? lowering taxes, which would banking. That all changes customers’ readers with your brand and position I started a farming business in instantly improve profitability for expectations, and you have to keep your company as a thought leader in the Oberlin when I was 11. My parents banks. them happy. bought me chickens and I sold eggs. marketplace. Here are a few tips to help Then I raised crops, and eventually And the downside? And those are costs that simply you create content that will be appealing. pigs, which I’d sell to Bob Evans. I suppose the downside would be a weren’t part of the model even recession risk. When you look at the just a few years ago. 1) Keep it short. Lengthy articles can seem Star Wars or Star Trek? last eight administrations or so, Each year, the bar goes up more and daunting to readers. 2) Make your content I’m a sci-fi fan and I like both. But, when you go from the second-term more. To aord these new Star Trek. president to the next one, I think technologies, you have to have relevant to everyone. 3) Avoid technical every time it’s triggered a recession operational eectiveness, which jargon or very industry specific acronyms. in two years. I think everyone is kind means being more eective in the of aiming in the direction that that’s back oce, reducing processes and They may deter your audience. not likely to happen this time. And I costs so you can invest in new would tend to agree with that. But things. When you look at 2017, 2018, history would tell us otherwise. One 2019, I see that bar set even higher. risk is we don’t know what could trigger a recession. Maybe it would It sounds like fintech — or be trade barriers or a global financial technology — is causing Lindsie Bowman recession we get pulled into. the revolution the internet did. Account Executive It really is. This all reminds me of In terms of running a bank today, another article I read from 2000. It Crain’s Cleveland Business technology has really featured a discussion on how the [email protected] revolutionized the industry, hasn’t internet would transform banking. it? There used to be talk that internet It’s a revolution, yes. I was looking at banks would displace brick and a story back from 2003 discussing mortar banks. And it also said big how the latest innovation in banking banks were dinosaurs and would go was digitizing images — so the away. So, some of what many electronic exchange of checks predicted shook out today. Some of versus exchange in paper. That was it missed. What really ended up called the biggest innovation since happening is banks absorbed the How Crain’s can work for you: Lunch spot 1956. That’s when magnetic ink new technology and transformed character recognition happened. So themselves. The internet became a CRAIN CONTENT STUDIO - CLEVELAND Rosewood Grill then you fast-forward to today. It’s new way to interact with customers 16740 Royalton Road, Strongsville funny — when you look at the 1950s faster and cheaper. And while there’s 440-783-5500 to the 2000s, there was massive billions being invested to win Crain Content Studio – Cleveland, the innovation. But when you look at the customers and market shares from content marketing division of Crain’s The meal 2000s to today, there’s been a ton of banks, the banks will adopt the tech Iced tea and Mediterranean tuna innovation as well. Things have and figure out how to do it faster Cleveland Business, is ready and willing to cobb salad with seared, rare Ahi completely turned around. Just look and cheaper. review your work and make sure you are tuna. Fish tacos with crispy at how payments are processed and publishing quality content interesting to whitefish, black beans and rice. who the competitors are, like Venmo, In terms of running a community Apple Pay, Google Wallet. bank, this no doubt is a challenge. your target audience. The vibe But is all that unsettling? Fast service, good food and mellow The proliferation of technology is The smart banks will have good Contact your account executive today for ambiance in a generally upscale forcing change at a faster pace, strategies and figure out how to more information. setting. Pricey fare — the tacos were then. adapt to all this. Like many industries, maybe a bit expensive for fried That’s right. Technology, specifically the ones that lag behind or think it whitefish, but that didn’t stop me the internet, has led to wireless doesn’t matter or don’t pay attention from trying them. Solid lunch option. capabilities, mobile, handheld are the ones who will become devices, new products and services. obsolete and get acquired — and The bill It’s all radically shifting how that’s been happening in banking for $32.35, plus tip customers interact with banks. years.