Consumers Are Pricing out Care

20140113-NEWS--1-NAT-CCI-CL_-- 1/10/2014 2:45 PM Page 1

$2.00/JANUARY 13 - 19, 2014

More consumers are pricing out care

deal, while hoping they’ll keep orient themselves to a marketplace Northeast Ohio hospitals are adjusting to increasing number quality in mind. fueled by consumer choice. As a result, many hospitals are Technology has enabled hospi- of patients who want to know how much procedures will cost putting systems in place to give tals to automate the otherwise prospective patients an almost in- cumbersome process of estimating By TIMOTHY MAGAW Act takes hold, Northeast Ohio hos- ate treatment to shop around for stant quote of how much they can patients’ out-of-pocket costs based [email protected] pitals expect consumers to do a lit- the cheapest emergency room. But expect to owe out of pocket for cer- on their individual insurance.And tle more price shopping before they for elective procedures or tests — tain services. It seems like a fairly ob- consumers are starting to respond, With people on the hook for larg- commit to care. think knee replacements or CT vious solution and one that should in part because insurance often is er portions of their medical bills, Hospitals, of course, aren’t ex- scans — hospitals increasingly ex- have been done long ago. However, covering less of their bills. especially as the Affordable Care pecting those demanding immedi- pect consumers to seek out the best health systems are just starting to See CARE Page 15 Industry building brighter future Manufacturers see good things ahead locally for sector By DAN SHINGLER [email protected]

The chilly breeze everyone experienced in early January might not have felt so frigid to area manufacturers, who seem to have all of the wind at their backs these days as a broad front of improving economic conditions portends a warming trend for the sector this year. “After a pretty lackluster 2012 and

MCKINLEY WILEY first half of 2013, it looks like manu- Jim Tressel, originally hired in 2012 as the University of Akron’s vice president for strategic engagement, is now the Zips’ executive VP for student success. facturing is finally getting some trac- tion,” said Chad Moutray, chief economist for the National Association of Manufacturers in Washington, D.C. “We’ve seen a pretty noticeable pick- HE’S NOT JUST HERE FOR SHOW up from the first quarter on. … We’ve seen production pick up and we’ve By TIMOTHY MAGAW a largely undefined administrative role — one also seen new orders pick up.” Tressel’s ever-expanding [email protected] that carried the weighty title of vice president The reasons for the uptick are for strategic engagement. The controversial plenty, say Mr. Moutray and others. role at Akron proves he’s f the last 24 months have proven anything hiring came less than a year after the Northeast Export markets in Europe are im- about Jim Tressel, it’s that he’s no orna- Ohio native resigned as Ohio State University’s proving, there is still strong demand anything but ‘an ornament’ ment. head football coach in the wake of a scandal in- for automobiles in the United States, aircraft production is continuing to ON THE WEB: Watch an excerpt volving a group of his players and his failure to ITwo years ago next month, Mr. Tressel report violations to the NCAA. rise and demand for both metals and of the interview with Jim Tressel at: joined the University of Akron in what was then See SHOW Page 17 machinery is strong here at home. www.crainscleveland.com See INDUSTRY Page 15

02 SPECIAL SECTION 6 SMALL BUSINESS

74470 01032 leap onto shelves of big-box stores ■ Pages 11-14 by Crain Communications Inc. Vol. 35, No. 2

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2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 13 - 19, 2014 COMING NEXT WEEK WHERE THE JOBS ARE Occupations and industry sectors related to construction and health care are Checking the pulse of the region projected to add the most new jobs from 2012 to 2022, according to estimates from the U.S. Bureau of Labor Statistics. Total employment is Crain’s will take another look at those making projected to increase 10.8%, or 15.6 million, during the 10-year period. That 700 W. St. Clair Ave., Suite 310, a big difference in Northeast Ohio with our sounds pretty good, but BLS says it represents a growth rate of 0.5% per year Cleveland, OH 44113-1230 from 2012 to 2022, down from an annual growth rate of 0.7% from 2002 to Phone: (216) 522-1383 Who to Watch in Health Care section. 2012. Here’s a look at the industries projected to add jobs at the fastest pace Fax: (216) 694-4264 through 2022: www.crainscleveland.com CORRECTION Publisher/editorial director: Sector x-Jobs x-Projected jobs Annual growth John Campanelli ([email protected]) ■ A Jan. 6, page 17 story Care Act. in 2012 in 2022 rate, 2012-2022 Editor: mischaracterized the position of Though he favors some of the act’s Mark Dodosh ([email protected]) Master Products Co. president Jeff objectives, Mr. Walters is not a Managing editor: Health care/social assistance 16.97 21.96 2.6% Scott Suttell ([email protected]) Walters with regard to the Affordable proponent of the act generally. Sections editor: Construction 5.64 7.26 2.6% Amy Ann Stoessel ([email protected]) Educational services 3.35 4.02 1.9% Assistant editor: REGULAR FEATURES Kevin Kleps ([email protected]) Professional/business services 17.93 21.41 1.8% Sports Classified ...... 18 Letters ...... 9 Senior reporter: Mining .80 .92 1.4% Stan Bullard ([email protected]) Editorial ...... 8 Reporters’ Notebook....19 Real estate and construction From the Publisher ...... 8 Talk on the Web ...... 8 Total 145.4 160.9 1.0% Reporters: ■ Jay Miller ([email protected]) Going Places ...... 7 What’s New...... 19 Source: U.S. Bureau of Labor Statistics; www.bls.gov; x-in millions. Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) HB Kindergartners scrub in Health care and education Michelle Park Lazette ([email protected]) at the Cleveland Clinic. Finance Rachel Abbey McCafferty ([email protected]) Manufacturing and energy Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Art director : Rebecca Markovitz ([email protected]) Events manager: Jessica Snyder ([email protected]) Special events coordinator: Kim Hill ([email protected]) Marketing strategist : Michelle Sustar ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Account executives: Dawn Donegan ([email protected]) Andy Hollander ([email protected]) Lindsie Bowman ([email protected]) John Banks ([email protected]) Michael Jansen ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Digital strategy director: Nancy Hanus ([email protected]) Audience development director: Eric Cedo ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Billing: Michele Ulman, 313-446-0353 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President While only 8% of all U.S. college women pursue degrees in science, Merrilee Crain: Secretary Mary Kay Crain: Treasurer a full five times as many – 40% – of graduates of Hathaway Brown’s William A. Morrow: Executive vice president/operations Science Research & Engineering Program declare majors in the Chris Crain: Executive Vice President, Director of sciences. Since 1998, more than 260 professional papers have been Strategic Operations Co-ed Early Childhood Dave Kamis: authored or co-authored by SREP students, who have garnered 142 Vice president/production & manufacturing & Girls’ Kindergarten Siemens and Intel finalist and semifinalist spots as well. That adds up Anthony DiPonio: Chief Information Officer FAMILY FUN to more than all other schools in Northern Ohio combined. Mary Kramer: Group publisher G.D. Crain Jr. OPEN HOUSE Founder (1885-1973) Early on, HB students of all ages learn that a world of amazing Mrs. G.D. Crain Jr. Saturday, January 25th Chairman (1911-1996) opportunity exists for them beyond our halls. You may not be able Subscriptions: In Ohio: 1 year - $64, 2 year - $110. 10–11:30 a.m. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, to choose your child’s ultimate destination, but you certainly can $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, choose the best starting point. Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to custom- [email protected], or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125

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JANUARY 13 - 19, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Firms looking for aid to find deal partners last Monday, Jan. 6, announced it More companies had hired James Irwin, formerly with Cliffs Natural Resources Inc., enlist full-time help, as senior director of corporate business development. It’s a newly cre- outside assistance in ated position in which Mr. Irwin will be responsible for the plastic resins hunt for acquisitions supplier’s acquisitions and divesti- tures across the globe. By MICHELLE PARK LAZETTE Joseph Gingo, A. Schulman’s [email protected] chairman, president and CEO, called M&A deals a “critical” piece MCKINLEY WILEY Increasingly, it seems, some of the company’s growth strategy, Athersys CEO Gil Van Bokkelen, left, believes the company could be at the “leading edge of a fundamental change in companies are so hungry for growth especially in a less-than-robust stroke medicine.” He is shown with Athersys president B.J. Lehmann. by acquisition that they’re willing to economy. pay for help in their fishing expedi- A day later, accounting and busi- tions. ness services conglomerate CBiz Last week came the announce- Inc. announced that David Sibits, ments by two publicly traded com- president of CBiz Financial Services INVESTORS PERK UP TO panies in Northeast Ohio that they up until Dec. 31, is refocusing his ef- now have executives working full forts on external initiatives includ- time to track down merger and ac- ing mergers and acquisitions as part quisition opportunities. of the leadership transition. PROMISE OF ATHERSYS Fairlawn-based A. Schulman Inc. See DEAL Page 18 Stock price has THE WEEK IN QUOTES surged since Nov. 1, could get huge jump “The pieces are falling “The strange thing into place for an about this field is from clinical trials economy that has a there’s a professional By CHUCK SODER much better tone in approach to it and [email protected] 2014.” there’s an activist Athersys Inc.’s stock price has — Ken Mayland, founder and approach.” president of ClearView more than doubled over the past two — Courtney Fint Zimmerman, Economics in Pepper Pike. months, and that jump may be just a historic preservation consultant Page One warm up if the Cleveland biotech and founder of Aurora Research company’s adult stem cell technolo- Associates LLC. Page 11 gy passes two crucial tests this year. Over the course of 2014, Athersys “Having been in a will release data from two clinical challenging role for a “Big box is my trials expected to give investors a good idea as to whether the compa- long, long time (as a playground. I’ve been ny’s MultiStem therapy will be- football coach), if I playing in that space come a blockbuster, a term investors and analysts commonly use weren’t as challenged for 20 years.Why not when talking about the technolo- in my next chapter in go that way if you have gy’s potential. REBECCA R. MARKOVITZ life, who knows if it the wherewithal to do Investors already are scooping up the company’s shares — its May. Athersys is working with phar- the second half of the year, when would be fulfilling?” it? We’re not modeled stock price stood at $4.12 at 1:20 maceutical giant Pfizer Inc. to test Athersys is scheduled to release — Jim Tressel, executive vice for small orders and p.m. on Thursday, Jan. 9, up from the effectiveness of MultiStem on data from a 136-patient trial that president for student success, $1.70 on Nov. 1 — as it prepares to more than 100 patients with a form will test whether MultiStem can University of Akron. Page One small shipments.” release data from its first Phase II of inflammatory bowel disease. help stroke patients. — Winston Breeden, CEO of clinical trial in late April or early But the main event will come in See ATHERSYS Page 10 Winston Products LLC. Page 11 Indians further tap into P&G’s expertise with latest hire

By KEVIN KLEPS Prior to joining the Indians, Mr. [email protected] New head of sales and marketing brings Barren was director of P&G’s Kroger customer business develop- Brian Barren — a longtime Proc- extensive branding experience from long ment team. Now he brings his con- ter & Gamble Co. executive who sumer marketing knowhow to the will be announced today, Jan. 13, as career at Cincy consumer goods giant Tribe, where he will oversee the the Cleveland Indians’ new execu- sales and marketing departments. tive vice president of sales and mar- Shapiro were beaten out for playing ing center was Bob Surace, who “In Brian, you get a guy who has keting — was the backup quarter- time by just anybody in those years, went on to spend nine seasons as Barren Shapiro risen to a high level at P&G and back for the Princeton University either. an assistant coach for the Cincin- been there a long time,” Mr. football team in 1987 and ’88. The quarterback ahead of Mr. nati Bengals and is now his alma friend away from a productive, 24- Shapiro said. “That’s a hard guy to Princeton’s second-string center Barren on the depth chart was Ja- mater’s head football coach. year career at Procter & Gamble, get out of there. He’s been delegat- in those two seasons was Mr. Bar- son Garrett, who would play eight Twenty-five years later, Messrs. the Cincinnati-based consumer ed some large areas of their busi- ren’s new boss, Tribe president seasons in the NFL as a backup QB Barren and Shapiro are reuniting in products giant known for Crest ness — billions of dollars of busi- Mark Shapiro. and is the current head coach of the the executive offices at Progressive toothpaste and Tide detergent ness. That’s a lot of responsibility.” It’s not as if Messrs. Barren and Dallas Cowboys. Princeton’s start- Field after Mr. Shapiro lured his among its many brands. See INDIANS Page 17 20140113-NEWS--4-NAT-CCI-CL_-- 1/10/2014 4:08 PM Page 1

4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 13 - 19 2014

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Visit 1350 Euclid Avenue, Suite 300 TerryCoyne.com Cleveland, Ohio 44115 CHUCK SODER/CONTRIBUTED PHOTOS BELOW This is the new MakerSpace at the Cleveland Public Library. It features all sorts of equipment and software that library patrons can use to create trinkets, products and works of art. Make space for the makers Room at Cleveland WEB VIDEO A Veteran-Owned Small Business Public Library built Laser cutters in motion See the equipment in action: Click for creative types this story at CrainsCleveland.com. Core Services By CHUCK SODER Creditors’ Rights • Collections • Subrogation • Bankruptcy [email protected] A MakerBot Replicator 2, 3-D printer Markets Served Artists, engineers, hackers and hobbyists have a new reason to get a Business • Finance • Education • Government • Healthcare library card. The Cleveland Public Library on Saturday, Jan. 11, was scheduled to Ethical, Professional, Excellent Service open MakerSpace, a room loaded with equipment that creative library Please visit our website www.tmslaw.net patrons can use to bring their ideas 888-364-7072 to life. The space is the next step in the Some of those ideas could become Cleveland Public Library’s effort to 25651 Detroit Rd, Suite 203, Westlake, OH 44145 something physical, such as a proto- embrace what often is called the type for a new product, a sign for a “maker” movement, Mr. Lynce said. A scanner for the 3-D printer business or something you could sell The library started targeting tin- at a craft show. But MakerSpace — kerers, tech geeks and do-it-your- located in the brightly colored Tech- selfers back in June 2012. That’s Central portion of the library’s when it consolidated many of its downtown branch — also has equip- computers and technology training ment for producing music, video programs into the TechCentral depart- and photographs. ment and started offering laptop The space, which cost $50,000 to set computers, tablets and e-readers up, is designed to help people unleash that patrons could use at the library. their creativity, according to Tech- A few months later, it added the FGJL@=9KLG@AGK Central manager C.J. Lynce. first of two 3-D printers, which were “It’s really a place for people to operated by library staff members. Equipment for shooting video, photos learn, experiment, collaborate and Then, in January 2013, the library use equipment that they may not started offering “maker labs” — necessarily be able to afford or have classes where people could learn to access to,” Mr. Lynce said. do all kinds of things, such as run a Among other tools, the space 3-D printer, create kaleidoscope art includes a 3-D printer, a laser cutter, or compose digital rock music. a vinyl cutter, musical instruments Those maker labs have been and video equipment, including a growing in popularity, especially green screen. Plus, MakerSpace since the library started offering the computers are outfitted with soft- classes at its branches, Mr. Lynce said. ware programs that patrons can use MakerSpace gives patrons access to design or edit their creations. to a wider lineup of tools to pursue A guitar; pairs with bass and keyboard

POWER Several items created by staff their own ideas on their own time. members were on display last week, But they will have help: The library said Sam Tripodis, coordinator for including a plastic business card offers tutorials for each tool, and TechCentral. 1509[gehadYlagfg^l`])-(egklafÛm]flaYd made in the 3-D printer, decorative staff members will be available to “It’s not just a place to be creative af\ana\mYdkafFgjl`]YklG`ag boxes made with the laser cutter and offer assistance. and innovative. It’s also a place to be decals printed with the vinyl cutter. Mr. Lynce said the library hopes to collaborative,” Mr. Tripodis said. Many of them included the Tech- attract experienced makers and The space is open to anyone in Akkm]\Yl]2>]Z&)/ Central logo. “people who just want to come in Ohio who has a photo ID and is willing 9\[dgk]2>]Z&. “I have a decal on the back of my and learn.” to become a library patron. car. One of a kind,” Mr. Lynce said The library is encouraging visitors “The big thing is, they need to EYl]jaYdk\m]2>]Z&)) with a laugh. with more experience to help others, have a library card,” he said. ■

:ggcqgmjY\lg\Yq;gflY[lEa[`]dd]KmklYj Volume 35, Number 2 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications Inc. Periodicals postage paid at Yl*).%-**%)+0+gjekmklYj8[jYaf&[ge Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Depart- ment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136 20140113-NEWS--5-NAT-CCI-CL_-- 1/10/2014 4:12 PM Page 1

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6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 13 - 19, 2014

CONTRIBUTED PHOTO 0HGLFDO*HQHUDO2IÀFH6SDFHIRU/HDVH A still from the movie “Fishing Without Nets,” which was co-produced by Think Media Studios in Mayfield Heights. ,17(567$7(648$5( 4212 / 4230 Chillicothe Rd., Willoughby, Ohio Located at Route 306 and I-90 ‘Fishing Without Nets’ adds Gregory B. West 216.861.7200 ‘horsepower’ to Think Media www.ostendorf-morris.com For instance, “King Me,” a docu- Coming out Film co-produced mentary about the competitive checkers scene and a South African Not to mention that they were by Mayfield Heights resident’s drive to become world open for the challenge of shooting a champion, played at the 36th Cleve- low-budget film in challenging con- Tell us what you think. ditions, and giving it the sheen of a firm will debut at land International Film Festival and won good reviews. But most of its polished action movie. Sundance this week revenue is produced by its availabil- Mr. Hodierne, 26, said in a video ity on Amazon’s video service, not posted on the Sundance website By SCOTT SUTTELL by traditional theatrical distribution. that the film occupies the “action [email protected] Mr. Glazen also said creation of art house” genre. “Fishing Without original content such as “Fishing Nets” is set in the late-2000s at the Think Media Studios in Mayfield Without Nets” and “King Me” height of Indian Ocean piracy, and Heights has a decade of video pro- showcases Think Media’s talents in it tells the story of a poor fisherman 201422014 duction work under its belt, but a new way to corporate clients, pro- who is cajoled into helping a gang nothing prepared it for the de- vides new challenges for the firm’s of pirates hijack an oil tanker. BUSINESS OUTLOOK SURVEY mands of “Fishing Without Nets” — 13 employees, and makes it easier Much of the 77-day shoot of the its first feature-length, fiction film, to recruit talent to Cleveland. film took place on the East Wind, a and one that’s in the spotlight this “People want to be at a place 305-foot oil tanker based out of the Scan to participate or visit Antilles. (Many of its crew members mcdonaldhopkins.com week as it debuts at the Sundance where they know they can do inter- Film Festival. esting work,” he said. play hostages in the film.) Most of The film, which Think Media co- the cast members are first-time ac- produced with New York-based Embracing Vice tors, though a few professional ac- Vice Media, tells the story of pirates Mr. Glazen’s Hollywood connec- tors, including Reda Kateb, whose in Somalia from the perspective of tions helped put Think Media on credits include “Zero Dark Thirty,” a struggling, young Somali fisher- the radar of Vice Media, a growing appear in the film. The film’s lead character is Abdi, a McDonald Hopkins LLC man. (This is no “Captain Phillips.”) content company that produces a young husband and father who turns 4VQFSJPS"WF &BTU 4VJUF $MFWFMBOE 0)t It was shot in Kenya for 10 weeks at gonzo, half-hour news show for Carl J. Grassi, Shawn M. Riley, the end of 2012 and the start of HBO, among other ventures. to piracy to support his family. He President Cleveland Managing Member and his fellow pirates capture a $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI 2013, with much of the filming tak- Eddy Moretti, chief creative offi- ing place on water. cer of Vice, said he was turned on to French oil tanker and demand a hefty mcdonaldhopkins.com “On a ship, you have everything the short version of “Fishing With- ransom. During the long wait for the going against you,” said Brian out Nets” by a Vice employee in Los cash to arrive, Abdi forms a tentative Glazen, president of Think Media, Angeles who recently had worked friendship with one of the hostages. quickly ticking off the list: seasick- with the William Morris Agency. When some of the pirates resort to vi- ness, sunburn, loading expensive The film, as described to Mr. Moret- olence, Abdi must make dramatic camera gear onto dinghies, shipping ti at the time, was perfect for the choices to determine his course. Presented by hard drives with film footage back to Vice brand because it was challeng- “It’s a really strong, ambitious shore, and spending an extra ing, emotional material that had an film with an emotional impact,” Mr. $100,000 on special safety mecha- international perspective and could Glazen said. resonate with younger audiences. The Sundance festival, celebrating nisms for cast and crew. (Also: Not th everyone involved in the production A week before the short debuted its 30 anniversary this year, runs Jan. CIO at Sundance in 2012, Mr. Moretti 16-26 in Park City, Utah. “Fishing could swim.) But the effort to make “Fishing saw it, was “blown away” by the Without Nets” receives its premiere OF THE YEAR Without Nets” was worth it, Mr. film, and set up a meeting with the on Friday, Jan. 17, and then shows Glazen said, both as a work of art and director, Cutter Hodierne. three more times at the festival. as another step for Think Media to Shortly after that meeting, Mr. The film will be up against some 2014 Moretti said, they decided to pur- heavy hitters. Among them: “God’s produce original content to augment its corporate work for clients includ- sue a feature-length version of the Pocket,” directed by John Slattery of ing the Cleveland Cavaliers (those film. “Mad Men” and starring Academy cool intro videos at home games are Mr. Moretti said Vice executives Award-winner Philip Seymour Hoff- NOW ACCEPTING NOMINATIONS from the firm), Parker Hannifin were “open to going it alone or man; “Happy Christmas” from di- Corp. and Progressive Corp. partnering with someone cool” for rector Joe Swanberg, reunited with For nomination inquiries email “We found something with a lit- production of “Fishing Without Anna Kendrick, one of the stars of tle horsepower behind it,” Mr. Nets.” A director of sales at Vice this year’s acclaimed “Drinking Bud- Kim Hill at [email protected] Glazen said of “Fishing Without knew Mr. Glazen from his time in dies;” and “Low Down,” starring Os- Nets,” which cost $2 million to Los Angeles and suggested Think car nominee John Hawkes. or visit make and is an expansion of a 17- Media because, as Mr. Moretti put “Fishing Without Nets” also is minute film of the same name that it, “they do cool s—- and they want- angling for a slot in the prestigious CrainsCleveland.com/CIO won the Grand Jury Prize at Sun- ed to expand their horizons.” Berlin International Film Festival dance in 2012. According to Mr. Moretti, Vice’s next month, Mr. Glazen said, fur- Co-Presented by Cocktail Reception Sponsor Mr. Glazen, who worked in Hol- production crew found it “great” to thering its chances of being pur- lywood for a decade before launch- work with their counterparts at chased for theatrical distribution ing Think Media in 2004, sees pro- Think Media, which he said and making it a more attractive duction of original content as a brought significant technical exper- property for video-on-demand and logical expansion of the firm’s ca- tise and “another strong perspec- streaming services. tive” to filming. Mr. Glazen and other members Video Sponsor Supported by Display Sponsor pabilities. New distribution lines such as video on-demand and ser- “We’re looking to do more things of Think Media will be in Park City vices such as Amazon Instant Video with Think Media and Brian,” Mr. for the premiere, celebrating the and Netflix create revenue streams Moretti said. “It’s rare to find good firm’s leap into fiction filmmaking. that didn’t exist for niche products, people who have a really simpatico “This is in a sense our coming out ■ he noted. kind of view with your own.” party,” Mr. Glazen said. 20140113-NEWS--7-NAT-CCI-CL_-- 1/9/2014 1:52 PM Page 1

JANUARY 13 - 19, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7

GOING PLACES Attn: Manufacturers & Warehouses JOB CHANGES ✔ ✔ Reduce Lighting Energy Cost 50% ENGINEERING CT CONSULTANTS INC.: Ted ✔ ✔ FirstEnergy Rebates up to 35% Deremer to resident engineer. ENTERTAINMENT ✔ ✔ Double Plant Light Levels HORSESHOE CASINO CLEVELAND Brown Latkovic Culbertson Bennett AND THISTLEDOWN RACINO: ✔ ✔ 8-24 Month Payback Jamie Brown to vice president, marketing. FINANCIAL SERVICE CANDLEWOOD PARTNERS: Steve Call Bob Taussig Latkovic to managing director. CBIZ: Gregg Morris to manager of ROI Energy business development, Northeast Springer Leffler Raufman Rudolph Ohio locations, CBIZ MHM LLC; Carl TODAY! Bishop to IT project manager; Brad J. Slosar to Jeff Wherry to secretary. Sieniawski to strategic plan community 330-931-3905 consultant, retirement plan services. resource AWARDS www.ROI-Energy.com COHEN & CO.: Jami Blake, Scott manager; AMERICAN ACADEMY OF SOCIAL Lichtenstein and Lisa Loychik to Violeta Staneva WORK AND SOCIAL WELFARE: partners; Matt Cunningham and to staff accoun- David E. Biegel (Case Western Mike McGivney to directors; Lisa tant; Rosemary Reserve University) to fellow. Metzinger to senior manager; Weizer to clini- BEACHWOOD CHAMBER OF Jennifer Henthorn, Matt McCall, cal office manager. Weaver Gina Nocera, Adam Schultz, Neal COMMERCE: Paula Rollins received CLEVELAND IN- Your Residents Sheehan and Josh Swander to the 2013 Citizen of the Year Award; STITUTE OF ART: Amy Raufman managers; Tarik Awad, Carmela Bruce Newburger (Dynamics Online) Move in Faster! to vice president, Ballone, Richard Boswell, Bill received the 2013 Ohio Chamber of institutional✔ advancement. ✔ Boyer, John Graham, Brian Commerce Bright Star Award. ProMark™ kitchen and bath Korsberg, Emily Kwong, Angel HOPEWELL: Hyatt Bolden to HANNA PERKINS CENTER FOR cabinets are made to order in development manager. Rice and Jonathan Williamson to ✔ CHILD DEVELOPMENT: Zachary ✔ 5 days or less – Guaranteed! senior staff accountants. KIDNEY FOUNDATION OF OHIO: Paris (Jones Day) and Deborah Paris COHEN FUND AUDIT SERVICES: Kelly✔ Dowling to vice president. (Hanna Perkins) are the first recipients ✔ Brett Eichenberger to partner; MALTZ MUSEUM OF JEWISH of the Hadden Award. Lindsay Selick to manager; Sean HERITAGE:✔ Ellen A. Rudolph to NORTH COAST COMMUNITY ✔ Fox and Andreana Shengelya to executive director. HOMES: Patricia and Ed Pavlish Locally Made | 7 Colors senior staff accountants. (Chemical Solvents Inc.) received the Tremont Oak, Spice Color Shown Call (216) 453-3654 MEADEN & MOORE: Carlin REAL ESTATE Above & Beyond Award; Glenn E. Culbertson to senior manager. TRANSACTION REALTY: August Billington (Billington Law) received the Community Service Award. SKODA MINOTTI: Suzann Bennett Garofoli to sales associate. to administrative assistant; Laura For daily on-line updates, sign up @ Springer to client account manager, SERVICE Send information for Going Places to Aurum Wealth Management. LAZORPOINT: Rick Weaver to [email protected]. CrainsCleveland.com/Daily infrastructure project engineer. LEGAL BROUSE MCDOWELL: Amanda M. STAFFING Leffler and Keven Drummond AREA TEMPS INC.: Elizabeth Eiber to co-chairs, Litigation Practice Flanagan and Amelia Jacobs to Group. sales representatives; Lauren DREYFUSS WILLIAMS Brooks, Jessica Lehman, Jessica & ASSOCIATES CO. LPA: Nicholas Alford and Kristen Kreft to sales Kopcho and Stephen Albenze to coordinators. associates. THOMPSON HINE LLP: Scott B. BOARDS Lepene and Brendan J. McCarthy DIABETES PARTNERSHIP OF to partners. CLEVELAND: Roger Ruch (FirstEnergy Corp.) to chair; William NONPROFIT Murman to vice chair; Lori CLEVELAND HEARING & SPEECH Weinstein to secretary; Alenka CENTER: Paul Barnes to sign Winslett to treasurer. language interpreter; Brittany NAIOP NORTHERN OHIO D’Ettore to outreach specialist/data CHAPTER: Mark Panzica (Panzica coordinator; Katrina L. Gagne to Construction) to president; Alex development associate; Geraldine Russo to president-elect; Amy A. Medoro to manager of marketing, Whitacre to immediate past communications and events; Richard president; Gabe Adler to treasurer;

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 13 - 19, 2014

PUBLISHER/EDITORIAL DIRECTOR: John Campanelli ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION The key ast month, our Jay Miller wrote an engaging Page One story that gave readers a behind- the-scenes look at the secretive effort L mounted last year by civic leaders in North- east Ohio to win the divisional headquarters of a large, mystery-shrouded employer. Economic development officials and the business executives who worked with them in the recruitment effort didn’t know for the better part of eight months the identity of the prized employer they had been courting. It turned out to be Nestlé USA, which FROM THE PUBLISHER wanted to move its frozen pizza division to a new home from Northbrook, Ill. It was intriguing that Nestlé made its Northeast Ohio suitors jump through hoops as the company Prediction: We’ll do better at diversity screened contenders for the division’s headquarters and its 250 jobs. After all, the Swiss food giant al- n last week’s issue, we printed pre- east Ohio,” but we cannot hold that lofty We should have known better. We ready was extremely familiar with the Cleveland dictions for 2014 from 32 title if we overlook large portions of our should have dipped into a deep and di- notable community lead- region. It’s our obligation to verse pool of voices for our predictions market, because more than 1,900 Nestlé employees JOHN cover all of Greater Cleve- (there certainly is no shortage of quali- work in Solon at its prepared foods and bakery divi- ers. It was an interesting Ipackage, giving readers a look CAMPANELLI land’s business community. fied leaders in the communities we sions. into the crystal ball on educa- I’m not just talking about missed). And we should do it every time So, what did Nestlé want to find out about North- tion, real estate, the economy, women and minorities; I’m we undertake a feature like this. east Ohio that it didn’t know already? politics and more. talking diverse age groups, dif- I try to look at mistakes as “opportuni- Jay Foran, who was the region’s point man in its But the package also re- ferences in experience, view- ties in disguise,” and this mistake pre- pursuit of the headquarters, said it became obvious vealed something else: Crain’s point and culture. It means sents a golden one. what the mystery company was after as it talked to Cleveland Business has some covering small businesses as I have issued a challenge to all Crain’s well as large ones, for-profits staffers (and, believe me, I cc’d myself) to human resource executives from local companies work to do. and nonprofits, established expand our networks, to include different that had made their people available to the recruit- Of the 32 faces featured in the predictions section, guess companies and start-ups, in ages, races and backgrounds. Our covering team. how many represented the all relevant sectors. age — and our lives — will be richer be- “They were asking, ‘Can we find people in North- African-American community? Some of this, we already do well. cause of it. east Ohio that can do this kind of work and, for tal- Zero. I can assure you that there was noth- We will actively pursue story ideas, ex- ent that we would like to bring in from outside the There were also no Asian-Americans ing intentional behind this mistake. Our pert opinions and sources from all com- region, was there enough to persuade the talent to in the group and only one Hispanic reporters were each instructed to reach munities and sectors. That’s not an edict make the move?” said Mr. Foran, who is senior vice (University of Akron President Luis out to a few leaders, interview them and for a quota; that’s called being compre- president of business attraction for Team NEO, a Proenza). Just as shocking: 30 of the 32 write up their predictions. Unfortunate- hensive. were men. ly, each of those “fews” was made up of I also want to make my own predic- nonprofit that focuses on business attraction ef- similar people. By the time we realized tion for 2014: As the year goes on, you forts. That’s a monumental mistake and a disservice to all our readers, no matter we were looking at a sea of white — and will notice coverage that reflects the Nestlé was concerned about talent — the ability their race or gender. almost all male — faces, it was literally wonderful diversity — of people, busi- to attract it, the ability to keep it. We pride ourselves on being the “pre- too late to scrap or fix the project. ness and thought — of our great region. Yes, talent — the linchpin of any company’s abili- mier source of business news in North- That’s an explanation, not an excuse. On that, the crystal ball is clear. ■ ty to compete against its rivals. Talent also is the key for a city, region, state or nation to compete against other cities, states or nations. TALK ON THE WEB There are two primary ways for a market to accu- not participate in conspicuous giving. mulate talent. One is to grow your own. The other is Re: Obamacare Reader responses to stories and entrepreneurs If those at or near the top would only to create the conditions for people from outside the and blogs that appeared on: consider maybe doing with one less market to find a community a desirable place to ■ I believe there are two other factors www.crainscleveland.com $100,000 car and do something very sim- bring their talents and to connect with other people that demonstrate the flaws in Oba- ple like even giving it to a food bank or once they get there. macare. Uncertainty = risk aversion = high bar some other organization that helps those The first method of talent accumulation is limited The Obamacare model is predicated for investment decisions. — Anthony Kure less fortunate, they would have a much better feeling of self-worth, and all of us by a region’s capacity to produce the range and on universal coverage, which means the would benefit. depth of knowledgeable individuals that employers pool of the insured is both “healthy” and Re: The skills gap remains “sick.” As your Jan. 6, Page One story, very real It seems that with only a few excep- desire. The latter opens a community to a literal “Paying a fine is OK with them,” indicat- tions of a handful of super-rich, there are ■ world of talent. ed, entrepreneurs are another sub-sec- We are seeing the gap that guest too many that do not feel they have any Cleveland and Northeast Ohio can’t afford to ig- tion of the population who forgo cover- blogger Tony Nicol described across the responsibility to truly help others. nore either method. age and pay the fine (assuming they do). country, not only in Ohio, particularly in — Neil Dick manufacturing, information technology The argument can be made that it takes jobs to at- These folks are usually younger and usu- and health care. ally healthier, which exacerbates the al- Re: Horseshoe Casino’s tract talent just as much as it takes talent to attract Wish he had gone further in suggest- ready skewed pool of those that are or jobs. Fair enough. However, as the experience with ing what employers can do, though. weather-related closing will be insured under this plan. Nestlé shows, a region that is shy on talent will More and more are building their ■ Hopefully they will upgrade it soon The second problem is more esoteric, struggle to build positive momentum as it is passed pipeline from within. — Susan Kannel and build phase two. Why keep down- and that problem is uncertainty. I be- town Cleveland at a disadvantage? over by potential job creators. That is why invest- lieve Obamacare is the biggest among ment in education is crucial, and why Northeast Re: Good times Would Dan Gilbert have built a subur- many government policies that make ban casino in Detroit to shift activity Ohio can’t make the welcome mat big enough to long-term business planning a guess at in luxury auto biz away from the city center? Heck no! talented people from all points of the globe. best. I know this first-hand as an entre- ■ It is unfortunate that those partici- Cleveland always seems to get shafted. preneur. pating in conspicuous consumption do — Ron Edwards 20140113-NEWS--9-NAT-CCI-CL_-- 1/9/2014 3:19 PM Page 1

JANUARY 13 - 19, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

LETTERS City’s mix should be on display was saddened and dismayed Domestic cuts don’t help WRITE TO US by the list of Cleveland-area economy sustain success Send your letters to: Mark Dodosh, notables that Crain’s selected editor, Crain’s Cleveland Business, 700 A story in your Nov. 11, 2013, is- for its 2014 Predictions section, W. St. Clair Ave., Suite 310, Cleveland, Iwhich ran in its Jan. 6 issue. Did sue on sequestration continuing to OH 44113-1230 anyone at Crain’s take a look at the squeeze local manufacturers high- Email: [email protected] 40 pictures on display? Forty white lights effects on regional companies of shrinking military spending. faces with only four females among sistance, job retraining and finance Since then, Congress has restored them. to communities facing military threatened sequestration cuts. But plant closures. Financial support Some corporate and academic with the winding down of two wars could be expanded and better tar- leaders in Cleveland are starting to we can anticipate continued reduc- geted for Commerce, Energy, Labor recognize that the city and region tions in Pentagon orders. and Treasury Department pro- must embrace and celebrate The latest budget deal an- grams designed to spur economic diversity and open our arms and nounced on Dec. 13 also restored growth via development of clean eyes to newcomers if we are to some cuts to domestic programs. energy and sustainable transporta- compete in the global marketplace. Nevertheless, projected savings tion technologies. Post-Cold War I look forward to that recognition come out of federal worker and vet- military downsizing programs fo- being reflected in Crain’s. eran compensation, while substan- cused on developing civilian uses tial cuts in safety net programs are Asking Dr. Akram Boutros, for existing military technology still on the table. president and CEO of MetroHealth could be restored, and some new For those paying attention, the Medical Center, or Sheila Wright, programs initiated. continued deterioration in commu- the new, dynamic leader of Some of these programs are al- nity services and worker pay has to Cleveland’s NAACP, what they ready in existence. Others are more be contrasted with egregious Penta- predict for 2014 would have added long-term opportunities to transfer gon waste, estimated at more than a different and fresh perspective to from a highly military-dependent $1 trillion a year, including obsolete the list. And hearing from Alonzo economy to one better geared to weapons systems still in production. Mitchell, the 33-year-old dynamo meeting vital economic and envi- The closing of the Akron Lock- ronmentally sustainable domestic who just pulled off the successful heed Martin plant, coming not long needs. Ohio Homecoming New Year’s Eve after controversy over the Penta- Rather than single-mindedly try- party in Public Square, would add a gon’s plan to phase out the Lima- ing to protect contracts for military young and positive perspective. made Abrams tank, should encour- hardware we don’t need, now is the The next time a list is compiled, I age new thinking about Ohio’s time for our state and our regional hope you will consider the rich economic future. A good place to business and planning bodies to fabric of women, minorities and start would be the “Framework for anticipate and plan for transition to Defense Transition Assistance,” pro- newcomers in the region. a more sustainable economy. If you don’t, Cleveland will con- posed by the Institute for Policy Nina McLellan tinue to be a balkanized city that Studies. This document offers prac- Co-chair looks backwards and inward tical recommendations for econom- Fund Our Communities instead of the center of a growing, ic conversion to assist workers, com- Coalition, Cleveland global economy. munities and military industries. The report identifies existing fed- Greg Coleridge Joy Roller eral assistance from the Pentagon’s Director President Office of Economic Adjustment for Northeast Ohio American Friends Global Cleveland community planning, technical as- Service Committee Sale of Park East building could signal move of Stratos Wealth Partners to Beachwood

Pike. Arthur Treuhaft, president of Structure is one of two in eastern suburbs that Keyes-Treuhaft, said the building recently were sold for less than previous sale price had been fully occupied for almost a year with multiple strong tenants. By STAN BULLARD “We’re at capacity now and we He said the company decided the [email protected] don’t have any room to grow,” Mr. structure was “at the top of its cy- Concepcion said of Stratos’ 15,500- cle” and that it was an opportune Two office buildings in the east- square-foot leased office at the Ar- time to offer it in the recovering real ern suburbs have started 2014 with bor Court multitenant building in estate market. new owners in deals in which the Solon. Still, Keyes-Treuhaft sold the sellers both got less for the proper- Stratos has 40 employees and has property for 30% less than the $5.65 ties than what they paid for them, told Cuyahoga County and the city million the firm paid for it in 1999. and one may become home to a of Beachwood as part of its pending The 3750 Park East building, wealth management firm planning incentive packages that it may add which is empty today after its pri- to move from Solon. as many as 20 jobs over the next five mary tenants moved, also sold for The Parkland Terrace office build- years. The 5-year-old company, less than its previous purchase ing, 6120 Parkland Blvd. in Mayfield which provides services to financial price. Heights, sold Dec. 23 to Parkland advisors, has a total of 300 employ- The seller of the Park East build- Professional LLC, an investor group ees nationwide, with offices in 20 ing was Realty Investors Corp. of in Edison, N.J, for $3.95 million, ac- states. Pepper Pike, which bought the cording to Cuyahoga County land The company is pursuing a $1.28 property in 1998 through its Dodge- records. Three days before, a build- million loan at a 2% interest rate Thirteenth Street LLC for $3.2 mil- ing at 3750 Park East Drive in Beach- from Cuyahoga County for the pro- lion. The building has 41,000 square wood sold to SWP Acquisition LLC ject and an income tax incentive feet of office space, according to a for almost $2.4 million, county land that needs to be considered by listing by Newmark Grubb Knight records show. Beachwood City Council to become Frank’s Cleveland office, which had The sale of the Park East building effective. offered the building for $4.1 million. promises to be the more transfor- “We have interesting options John F. Herrick, president of Re- mative transaction as it may result outside the area” for Stratos’ of- alty Investors, said he was satisfied in Stratos Wealth Partners Ltd. fices, but “our bias” is to stay with- with the transaction and argues it moving to Beachwood from Solon if in the county and near its current did not lose money on the deal. local incentives are approved. SWP office, Mr. Concepcion said. That is because his company had was formed by Jeff Concepcion, Parkland Terrace, a 43,000- bought the building and the adjoin- president of Stratos, and other part- square-foot building constructed in ing, empty Leaseway Corp. building ners in the concern as a potential 1988, was sold by Parkland Terrace from Penske Logistics Corp. in a re- new home for the company’s head- LLC, an affiliate of real estate devel- development project and sold the quarters. oper Keyes-Treuhaft in Pepper other building in 2003 at a profit. ■ 20140113-NEWS--10-NAT-CCI-CL_-- 1/9/2014 4:37 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 13 - 19, 2014 BRIGHT SPOTS Athersys: Analyst says strong trial results Bright Spots is a periodic feature valued at about $10,000, for Ben- in Crain’s highlighting positive jamin Franklin Elementary School business developments in the region. in Cleveland. The effort is part of could help company exceed target price To submit information, email Scott FrogTape’s Love for the Lunch- Suttell at [email protected]. room program. continued from PAGE 3 WHAT THEY’RE SAYING Work will be done during the hol- If that trial succeeds, the technol- ■ The Cleveland Clinic’s iday weekend of Jan. 17-20. The un- ogy could have an enormous impact “It’s not a question of if “At the end of the day, renowned heart program an- veiling of the new lunchroom will on the way stoke is treated, accord- it’ll work, it’s a question we’re going to have to nounced it will lend its exper- take place on Tuesday, Jan. ing to CEO Gil Van Bokkelen and of when and how.” see it translate into tise to hospitals in Mis- 21, when students, facul- three analysts who spoke with souri and Texas. ty and staff return to the Crain’s. – Steve Brozak, president human activity.” The new affiliations building following the Today, the only way to treat a and managing partner, WBB – Edward Tenthoff, senior with Saint Francis Med- Martin Luther King Jr. common form of stroke caused by a Securities (based in Clark, research analyst, Piper Jaffray ical Center in Cape Gi- N.J.), on Athersys’ clinical trials holiday. blood clot is to give the patient a (based in Minneapolis) rardeau, Mo., and Chris- FrogTape says it has clot-dissolving drug within three to tus St. Michael Health enlisted the help of tele- five hours. Less than 10% of all pa- help it issue $20 million in new Athersys. System in Texarkana, Texas, vision personality and interi- tients who’ve had one of these is- shares last November. are the Clinic’s westernmost or designer Taniya Nayak chemic strokes receive the drug, ac- The stock is still “dramatically Not so fast partners in heart care. They are the and Tom Bury, construction man- cording to several sources. undervalued,” Mr. Kolbert said, Edward Tenthoff of Minneapolis- 20th and 21st hospitals to form some ager from Food Network’s show By contrast, MultiStem produced noting that it should reach $10 a based Piper Jaffray was somewhat sort of affiliation with the Clinic’s “Restaurant: Impossible,” to create “significant and durable improve- share within a year. more hesitant. Athersys’ stock just Sydell and Arnold Miller Family the lunchroom design. ments” in animals even when ad- But if Athersys produces strong passed the $4-a-share 12-month Heart and Vascular Institute. ■ Law firm Buckley King said data in its Phase II trials, the compa- price target he reaffirmed in a Dec. As part of these arrangements, Harry W. Greenfield received the ministered several days after the ny could blow away his $10 target, 2 report published by Piper Jaffray, the Clinic collaborates with partner- Lifetime Achievement Award from stroke, according to a quarterly re- he said. Even $100 a share would be which deals in Athersys stock and ing institutions on complex medical the Turnaround Management As- port the company filed Nov. 14 with feasible if the stroke technology be- has provided investment banking situations and shares its research, sociation. the Securities and Exchange Com- comes a widely available product, services to the company in the re- care protocols and other tools. The award “recognizes individu- mission. Mr. Kolbert said, given that about cent past. In a news release announcing the als who have personally and profes- If the non-embryonic stem cell In the report, Mr. Tenthoff said a Christus deal, Dr. Bruce Lytle, sionally contributed to the corpo- technology works in human stroke two million people have strokes MultiStem product for stroke pa- chairman of the heart and vascular rate renewal industry throughout patients — which is still a big “if,” each year in the United States, Eu- institute, said, “Like our other affil- the course of their careers.” It is giv- given how unpredictable clinical tri- rope and Japan. Mr. Kolbert esti- tients could become a “true block- iates, cardiologists and cardiovas- en at the discretion of the Turn- als can be — the technology could mates Athersys would sell Multi- buster” and a “game changer,” but cular and thoracic surgeons at around Management Association’s become the new standard of care for Stem treatments for $25,000 or only if Athersys can prove it works. Christus St. Michael will collaborate chairman with approval of the orga- stroke patients, according to Dr. Van more. Developing therapies to treat stroke is “very, very difficult,” he said. with their colleagues in Cleveland nization’s management committee. Bokkelen. Japan holds promise Clinic’s Heart & Vascular Institute Brent Buckley, the firm’s manag- “We could literally be at the lead- “At the end of the day, we’re go- on a regular basis.” ing partner, said in a statement that ing edge of a fundamental change in Japan represents another huge ing to have to see it translate into He added, “These relationships Mr. Greenfield’s “ability to master- stroke medicine,” he said. opportunity for Athersys: The human activity,” Mr. Tenthoff said help to accelerate mutual accom- mind a turnaround strategy has Stock analyst Jason Kolbert of Japanese parliament recently in a telephone interview. plishments in cardiovascular and helped many troubled companies Maxim Group, a financial services passed a law that will allow stem cell The first Phase II clinical trial tar- thoracic treatment to provide the recover and eventually regain their firm based in New York, doesn’t ar- companies to start selling their geting ulcerative colitis, a form of highest level of patient care.” success.” gue with that point. In the race to de- products “if safety has been con- inflammatory bowel disease, has ■ FrogTape, a brand of ShurTech Mr. Greenfield is a fellow of the velop a stem cell therapy for stroke firmed in clinical trials, even if their finished enrolling patients and Brands in Avon, is helping to bright- American College of Bankruptcy, patients, Athersys is ahead of the efficacy has not been fully demon- should give investors a taste of en up a Cleveland Metropolitan which recognizes insolvency pro- competition, being the only compa- strated,” Athersys president B.J. whether MultiStem might work in School District lunchroom. fessionals who have distinguished ny running a Phase II trial treating Lehmann stated in a press release treating stroke and other condi- The brand says it’s lending its “re- themselves in their practice and in stroke patients, said Mr. Kolbert, issued last Thursday, Jan. 9, touting tions. It also might help Athersys ex- sources, creativity and design ex- their contributions to the insolven- whose firm deals in Athersys stock the company’s new Japanese pand its partnership with Pfizer and pertise” to a lunchroom makeover, cy field. ■ and was paid by the company to patents. By contrast, in the United generate some cash for the Cleve- States, most drugs after a Phase II land company: The drug giant has study also must pass a larger Phase promised to pay Athersys up to $105 III trial. million if MultiStem hits all its mile- Dr. Van Bokkelen wouldn’t give a stones in the commercialization timeline as to when MultiStem process. could hit the market in Japan, but Should that product reach the SWITCH FOR OUR COINAGE, he noted that Athersys executives market, Athersys would receive roy- have visited the country several alties from Pfizer. DOUGH, DINERO, MOOLAH times over the past few months. Be- Athersys should win a greater fore the company can release Mul- share of the spoils from the stroke MONEY-BACK GUARANTEE tiStem in Japan, government offi- product; the company so far has de- cials would need to finish writing veloped MultiStem for stoke on its regulations related to the new law, own. If that Phase II trial goes well, and Athersys would need to test the it still could establish a partnership technology on at least some Japan- with a larger pharmaceutical com- ese patients, Dr. Van Bokkelen said. pany, but it would be doing so from Athersys is in talks with Japanese a stronger negotiating position, Dr. BUSINESS VOICE pharmaceutical companies that Van Bokkelen said. could help develop and market Athersys already has completed /mo* MultiStem in the country, he added. Phase I trials on 25 heart attack pa- $ The opportunity in Japan signifi- tients and 36 people undergoing cantly enhances the value of Ather- medical procedures that could 30 sys, according to a research report cause them to suffer graft-versus- released last week by Steve Brozak, host disease. Both studies suggest- president and managing partner at ed that MultiStem is safe, and that it + FREE PROFESSIONAL INSTALLATION WBB Securities, a broker dealer and might have helped the patients. investment research firm in Clark, The company in August won a N.J. $2.8 million federal grant to pursue There’s a good chance results a Phase II heart attack study, and from Athersys’ Phase II clinical tri- because graft-versus-host disease is “Highest In Customer Satisfaction with als won’t look exactly like the com- rare, MultiStem has won orphan Small/Midsize Business Wireline Service” pany expects them to, given the un- drug status from U.S. and European predictable nature of such studies, regulators, which could allow Mr. Brozak said. But he still expects Athersys to start a combined Phase CALL OR CLICK TODAY the results to be positive, given pre- II/III trial for that condition as early vious data the company has pro- as this year. 866-791-2688 duced in animal trials and Phase I The company also is conducting clinical trials, which are mainly de- animal studies to test MultiStem on COXBUSINESS.COM signed to analyze whether a therapy other conditions. is safe. His 12-month price target for But by itself, the stroke market * Offer valid until 4/30/14. Minimum service term, equipment, installation, fees, taxes, and other restrictions may apply. All rights reserved. Limited 30-day money-back guarantee; exclusions Athersys shares is $9. could turn Athersys into a massive and other restrictions apply. See coxbusiness.com. © 2014 Cox Communications, Inc. All rights reserved. Cox Communications received the highest numerical score among wireline providers in the proprietary J.D. Power 2013 Business Wireline Customer Satisfaction Studies.SM Study based on responses from 4,784 business wireline customers measuring 8 providers “It’s not a question of if it’ll work, biotechnology success story, Dr. and measures satisfaction among wireline service decision-makers with small/midsize businesses. Proprietary study results are based on experiences and perceptions of consumers it’s a question of when and how,” Van Bokkelen said. surveyed in October 2012 and March 2013. Your experiences may vary. Visit jdpower.com. Mr. Brozak said, noting that his firm “Why wouldn’t we be a multibil- has no financial relationship with lion-dollar company?” he said. ■ 20140113-NEWS--11-NAT-CCI-CL_-- 1/9/2014 3:35 PM Page 1

JANUARY 13 - 19, 2014 CRAIN’S CLEVELAND BUSINESS 11

INSIDE 14 TAX TIPS: BUSINESS OWNERS TAKE ANOTHER HIT. SMALL BUSINESS

SHARON SCHNALL Historic preservation consultants Diana Wellman, left, and Wendy Hoge Naylor formed NaylorWellman LLC. They are shown at the Spillway property in Chagrin Falls. PAST REMAINS A PRIORITY INSIDE: Colleges and universities Historic preservation consultants find balance between then and now expand historic preservation program offerings. Page 14 By SHARON SCHNALL 2008 for $450,000. A paper mill and 80-seat movie theater, a styling [email protected] bag factory once operated on the and coloring salon, and a teaching and worker activity, he says, “We site, which today has buildings dat- facility and office space. Outdoor wouldn’t be here today. I feel like ob Darden stands at the ing from the 1850s to the 1920s. aficionados can look forward to a they were holding my hand entrance of the property By fall 2014, Mr. Darden said, seasonal entertainment pavilion through the whole process. This known as Spillway in Cha- approximately 72,000 square feet and four acres of green space. was their expertise.” grin Falls. of eight connected buildings will Mr. Darden also is the owner of “They” refers to historic preser- BThe now 8-acre site, situated be renovated; 45,000 square feet Darden Development LLC, a con- vation consultants Wendy Hoge along the Chagrin River, was pur- will be leasable space to include a struction management and general Naylor and Diana Wellman of chased by Mr. Darden and partners microbrewery and bar, coffee shop contracting firm based in Chagrin NaylorWellman LLC. Bill Phillips and Darren Wyville in and bakery, two restaurants, an Falls. As he looks at the building See PAST Page 14 Making a large leap onto the shelves

INSIDE: Advice on establishing and Companies can reap benefits from working with maintaining relationships with big-box stores. big-box stores, but there are plenty of challenges Page 12 Oasis Consumer Healthcare’s retail rela- This year, Crain’s Cleveland Business is introducing By SHARON SCHNALL not a quick proposition to get any product tionships include: CVS, Discount Drug a feature that will focus on small businesses [email protected] on the shelf,” added Mr. Ghannoum, co- Mart, Giant Eagle, Publix, Target, Wal- and second-stage journeys. The stories will focus on founder and vice president. “If you’re com- greens and Walmart. The large-scale smaller entities that have moved beyond — or are rian Sokol and Afif Ghannoum ing on, it’s likely someone is coming off.” placement of company products resulted trying to move beyond — the startup phase, and will were confident Oasis Consumer Oasis Consumer Healthcare has three from pitching to buyers at an oral care analyze some of the broader issues associated with Healthcare would be a player in product lines, launched from 2010 to 2012: conference, and a cough and cold prod- growth, such as this month’s feature on working with the big box arena and with other Oasis Dry Mouth; Age Essential Oral Care; ucts conference, both organized by ECRM, big-box stores. If you have a suggestion for a busi- Blarge retail accounts. the Solon-based trade conference organiz- and Halo Oral Antiseptic. In 2012, 725,000 ness or topic related to second-stage growth, con- “It’s a real estate game; it’s all real estate,” units were sold across all of the brands; er. Other buyers were contacted at their tact Amy Ann Stoessel at [email protected] or said Mr. Sokol, the downtown Cleveland 2013 unit sales were not available, Mr. headquarters; Walmart, for example. call 216-771-5155. company’s co-founder and president. “It’s Ghannoum said. See LEAP Page 12 20140113-NEWS--12-NAT-CCI-CL_-- 1/9/2014 3:19 PM Page 1

12 CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS JANUARY 13 - 19, 2014 Leap: Finding ‘patient investors’ can be a recipe for success continued from PAGE 11 Vendors will need money for Operating in a national retail raw materials and to expedite arena was never a question for goods when a big box account ac- Messrs. Ghannoum or Sokol, the celerates an order and when it latter who had 30 years of con- delays an order; but with delays, it sumer products experience that expects the vendor to “float along” included Loctite, Blue Coral, Quak- already-manufacturing goods, er State and Pennzoil. said Ms. Gress, who is adjunct fac- The same sentiment was ex- ulty with Cleveland State Universi- pressed by Winston Breeden, CEO ty’s Monte Ahuja College of Busi- of Winston Products LLC. The ness, teaching operations and Glenwillow company has launched supply chain management. several products including Smart- And beware: “Some big boxes Straps, SmartShingles, TowSmart can have financial penalties if you and CargoSmart. don’t deliver.” “Big box is my playground,” Mr. A lot of work Breeden said. “I’ve been playing in that space for 20 years. Why not go In 2007, Paula Hershman estab- that way if you have the wherewith- lished Storehouse Tea Company. The loose leaf tea company gained al to do it? We’re not modeled for SHARON SCHNALL The Yonanas appliance transforms small orders and small shipments.” initial visibility through home tea Co-founders Brian Sokol, left, and Afif Ghannoum were confident they could get frozen fruit into a soft-serve substance parties. By 2011, tea products were Going bananas their Oasis Consumer Healthcare products to be a player in large retail. that resembles ice cream. sold at selected Whole Foods Mar- ket sites, Earth Fare supermarkets In 2010, Mr. Breeden co-found- Mr. Breeden and former Northeast understand innovation.” dozen investors, mostly from North- and Giant Eagle Market District lo- ed Healthy Foods LLC with Eileen Ohio residents, now residing in Mia- Oasis Consumer Healthcare’s east Ohio, who collectively con- cations in Ohio and Pennsylvania. McHale and Brian Machovina. To- mi, Fla. The machine was refined co-founders were selective about tributed a seven-figure investment, and prototyped by engineers at Win- investors, seeking individuals, not Mr. Breeden said. The first signifi- Company gross sales were $5,000 gether, they and the Winston Prod- in 2007; expected gross sales for ston Products. massive institutions or venture cant distribution to investors was ucts personnel launched Yonanas 2014 are around $100,000, Ms. To date, more than 2 million capital firms. They wanted people made in December 2012, he added. — a kitchen appliance that trans- Hershman said. Yonanas units have sold in 35 dif- possessing realistic expectations “When you’re looking at risk, forms frozen fruit, notably ba- The Whole Foods connection about company milestones. you’re looking at operational risk, nanas, into a soft-serve creation ferent countries; 2013 gross sales was established through an en- resembling ice cream in consisten- were estimated at $40 million, Mr. “They had to be comfortable; financial risk and reputational risk. counter at an agricultural growers’ cy, but without the associated sug- Breeden said. they couldn’t expect an immediate You need to be able to mitigate conference: Ms. Hershman ap- ar, fat or dairy content. The product is sold at Bed, Bath ROI,” Mr. Sokol said. those three,” said Amy Gress, pres- proached a Whole Foods represen- Ms. McHale and Mr. Machovina, and Beyond, Best Buy, Kohl’s, Tar- Fifty angel investors were iden- ident of the Purchasing Manage- tative, who was a conference speak- a married couple, had collective get, Walmart and other retailers. In tified — half from Northeast Ohio ment Association of Cleveland. er; she shared about her Storehouse skills amassed from entrepreneur- summer 2013, Healthy Foods — while the remainder were na- PMAC, in its 100th year and an af- Tea and was encouraged to follow ship, culinary training, private launched Frinkles, freeze-dried tional and international. Participa- filiate of the Institute for Supply up with Whole Foods. catering and academic pursuits in fruit sprinkles — a topping com- tion collectively was between $6 Management, is a 270-member or- Having products carried at biology, research and agriculture. panion to the soft-serve creation and $8 million, said Mr. Ghan- ganization devoted to the ad- Whole Foods and elsewhere is an Mr. Breeden’s strengths, they said, made by the Yonanas appliance. noum, a 2005 graduate of Case vancement and education of sup- “honor,” she said, but requires a lot were with launching innovative Western Reserve University’s ply chain management and of work. When the Whole Foods ac- consumer products, drawing on A worthy investment School of Law and formerly an at- strategic sourcing professionals. count was landed, she recalls a in-house sales and engineering ex- Pursuing a big-box connection? torney with Squire Sanders and “Once you’ve made that com- company rep saying, “You do not pertise and connecting with estab- Consider investors. BakerHostetler of Cleveland. mitment to delivery, you’ve always want to be national right away. You lished retail relationships. “You need the right investors; The Yonanas investor connection got to maintain it,” she said. “(Big want to be consistent — stay small The Yonanas appliance and name you need patient investment capi- started with an inquiry from Mr. boxes) can change their orders and and grow slowly. We will keep you were conceived by Ms. McHale and tal,” Mr. Sokol said. “The patient Machovina to Mr. Breeden and ulti- plans, which is why (addressing) in Ohio until we see we can move Mr. Machovina, longtime friends of investors are the investors who mately was backed by about one the financial risk is important.” you into other states.” ■

UNCLE SAM WANTS Ways to make it work with big retail

eeking to establish and existing products. “Retailers will sentative suggested a white box for YOUR MONEY! maintain a relationship tell you that they don’t ever want the Yonanas appliance. Although with big-box and other large to change vendors,” Mr. Sokol later package generations feature Like many Americans, you probably don’t mind retail accounts? said. “Retailers will say, ‘I’m al- tropical colors, the box that origi- SHere is some advice: ready selling enough of the market nally appeared on Target’s shelves paying your fair share of taxes, but not one dime ■ Be open to partnerships. Let leader. I don’t want to bring your was white. “That was a quick les- more than you have to, right? go of sole ownership to reach the product in as a fighting brand.’” son,” said Eileen McHale, Yonanas greater goal of the big-box connec- “Retailers want to see that co-inventor and Healthy Foods co- tion. The investor network, in- you’re adding to the category not founder. “We have to navigate; We agree. Let Tom Hart, Financial vestor capital and what investors’ cannibalizing it,” added Afif Ghan- we don’t want to work in a vacu- ideas, resources and connections noum, Oasis Consumer Health- um … That’s life; you’re going to Consultant with LPL Financial, show you lead to — staff, sales force, market- care’s vice president. know when you can concede and ■ how you may be able to keep more of ing, production facilities — pre- Avoid being a one-hit won- when you can’t.” sent a solid front to the big-box der. “It’s hard to be a guy with a ■ Large-scale fulfillment de- your money for yourself by offering you buyers. “If you don’t have the garage and an idea, and launch a pends on supply chain quality. tax planning strategies. Did you know money, you have to give some- product to the big guys,” said Win- Develop a sturdy supply chain — thing up. Money makes things ston Breeden, CEO of Winston for raw materials — to support that the things you do in early 2014 may happen; ego can hold you back,” Products LLC and Healthy Foods. production and fulfillment; make help with your 2013 taxes? So don’t put said Brian Machovina, Yonanas “(A big box is) going to want to see sure the suppliers are as strong as co-inventor and Healthy Foods a strategy of a bigger idea behind it your company to guarantee manu- it off. Meet with Tom today by calling 888-801-1666 or LLC co-founder. … (a big box) wants to invest in facturing quality and timely ship- ■ visit middlefieldbank.com to get more details. Regional activity serves as a companies, not one-hit wonders. ping. “Your supply chain has to test market. “The retailers want to If you don’t have a strategy that be as nimble and flexible as you see proof of feasibility: Will anyone says you’re here to stay, big box is are,” said Amy Gress, PMAC presi- buy it?” said Brian Sokol, president going to pass on you.” dent. “… If (the supply chain) of Oasis Consumer Healthcare, re- According to Mr. Breeden, big- cannot respond to … (changes in garding how one company prod- box retailers, since 2008, have re- demand), you’re really going to uct was launched regionally with duced relationships with one- struggle with a big-box commit- Located at Discount Drug Mart. product vendors to increase ment.” The Middlefield “We had nice results, and we efficiencies. Advantages to con- ■ Promote, promote, promote. Banking Company took these results to Walgreens. solidating those particular vendor Getting on big box’s shelves is the (The representative) saw that a relationships include: reducing the beginning; staying is the chal- www.middlefieldbank.com • 888-801-1666 competitor had success with a number of purchase orders issued, lenge. Conduct in-store demon- 15985 E. High Street • Middlefield, OH 44062 product (Walgreens) didn’t have maximizing vendor relationships strations, hold special event ap- … Discount Drug Mart allowed for and reducing overhead costs,” said pearances and leverage social Not FDIC Insured Not Bank Guaranteed May Lose Value Marlene Strande, vice president of Not Insured by Any Federal Government Agency Not a Bank Deposit a conservative test,” Mr. Sokol media to create a customer follow- the Purchasing Management Asso- ing. Don’t rely on big box’s retail Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL said. Financial or its licensed affiliates. The Middlefield Banking Company is not a registered broker/dealer and ■ Offer a unique product. Iden- ciation of Cleveland (PMAC). circulars; you — the vendor — are is not affiliated with LPL Financial. tify a need on big box’s shelves, ■ Respond to feedback. Make responsible for product promo- but don’t offer similar versions of the easy changes. A Target repre- tion. — Sharon Schnall 20140113-NEWS--13-NAT-CCI-CL_-- 1/9/2014 2:38 PM Page 1

JANUARY 13 - 19, 2014 SMALL BUSINESS CRAIN’S CLEVELAND BUSINESS 13 Unearthing a healthy mix

Juicing and cleanses no longer just serve SMOOTH OPERATORS

fringe markets as more consumers look Juicing has become a $5 billion business — still a mere slice for ways to amp up organic consumption of the overall $258 billion By KATHY AMES CARR nonalcoholic beverage industry — [email protected] “You don’t get those highs but projected to grow between 4% and lows, like you’re to 8% a year, according to a 2012 isa Reed traveled with her Barron’s magazine story. mother to alternative medi- starving or need to take a Starbucks, for one, announced cine clinics nationally and nap because you just ate in October it was pouring $70 abroad — including to Cali- too much.” million into a “juicery” in California Lfornia, Mexico and Germany — to help in quadrupling the – Paul Neundorfer looking for natural ways to remedy production of its super-premium owner, Aristotle Design Group, line of Evolution Brand juices, a her mother’s battle with cancer. on the benefits of juicing Despite the diversity of each fa- line it acquired for $30 million in cility, they all issued the recom- 2011. mendation of drinking juices mediately bottled and refrigerated loaded with organic greens such as to extend their shelf lives. ing those products as meal replace- Her cleanse, which can be part Lisa Reed’s kale, spinach, cucumbers and ments. Garden parsley to regenerate the body and of a one-day or even five-day regi- Her recommended approach to men, condenses a couple shop- of Flavor fight against cancer cells. nutrition comes in the form of brand of That advice more than 25 years ping bags worth of produce and healthy diets that people can sus- nuts into various flavors, such as juices and ago planted the seeds for Ms. tain not merely in the interim, but cleanses Reed’s 2011 launch of Garden of goji pineapple, cucumber fresh 30 days from now, and even longer. and twisted roots. has grown Flavor, a brand of organic, cold- “The bottom line is for people to from pressed juices and cleanses that She plans to roll out early this have healthy diets with food in its year a new green juice that incor- producing have been gaining a considerable whole state too, a regular exercise 800 to foothold over the last year in porates live probiotics, which aid regimen and stress control,” said in digestion and provide a booster 10,000 Ohio’s natural food grocers. Ms. Kirkpatrick, wellness manager bottles per “People are becoming more shot to the immune system. for Cleveland Clinic’s Center for Paul Neundorfer, a loyalist of the month. aware of the benefits of juicing but Lifestyle Medicine. ■ CONTRIBUTED PHOTO either don’t have the time or mon- Mean Green dark vegetable med- ey to make juice daily,” said Ms. ley, attests to the natural energy Reed, an avid juicer, raw foods level lift the juices promote. chef and certified holistic educa- “I’m on the go all the time, so I tor. “This product packs 20 pounds go through a couple cases a week of raw vegetables, fruits and nut of the juice,” said Mr. Neundorfer, milks into six bottles, which nour- who operates a landscape archi- ish your body for the day.” tecture business, Aristotle Design Group, and is co-executive director HEALTH CARE LAW To meet production demand, Ms. Reed last year expanded from of the nonprofit Refugee Response. a small office in Chagrin Falls into “You don’t get those highs and a 3,500-square-foot facility in lows, like you’re starving or need Cleveland’s MidTown neighbor- to take a nap because you just ate A look at the people and organizations in Northeast Ohio who focus hood. Monthly production since too much.” then has grown from 800 to 10,000 Flexing some muscle on the practice of health care law and the current issues that are bottles, with distribution to 25 markets in Ohio, including Those thirsty for the nutrient- relevant to the field. Heinen’s Fine Foods, Whole Foods dense beverages will have a similar Market, Mustard Seed Market in outlet in Beet Jar Juice Bar, which Solon and Akron; and Chagrin is set to unveil in the coming weeks Falls-based Lemon Falls. its line of all-vegan, organic juices The juices also recently entered from a storefront in Ohio City’s Michigan, and Ms. Reed expects to Hingetown neighborhood, which broaden a Midwest presence with is located between the Market product placement in Chicago, In- District, Gordon Square Arts Dis- dianapolis and Minneapolis. trict and the Warehouse District. “We anticipate making Garden Anna Harouvis is working on of Flavor available in 125 stores by increasing the footprint of her veg- the end of this year,” and bolster- an cold-pressed juice cleanses being production to about 40,000 and yond a regular clientele of high- 50,000 bottles, she said. Her plan powered executives and sports also calls for adding two more full- agents who patron her Good To Go time staff to bring to five the total Cafe, located in downtown’s IMG number of employees. Building. “I tried to sell my raw juices for Going green the first time in 2001, then 2003, Juicing and cleanses are moving but the market thought it was too away from a fringe pursuit and new-age and wasn’t yet ready for finding favor among a broader it,” she said. “We have more consumer base looking for a con- clients, just like you and me, who venient way to consume their daily don’t see this as a diet but a sus- quota of raw, organic greens and tainable way to rejuvenate their fruits. bodies.” Companies that make cold- She says she plans to market her pressed juices say their products juices to regional professional and improve consumers’ mental clari- college sports teams after she ty, promote weight loss and overall ramps up production. well-being. “People are starting to see the Ms. Reed, who sources when in negative effects of sports drinks season certified organic produce filled with sugar and are realizing from Green Field Farms in Woost- the benefits of cold-pressed Issue date: Ad close: Materials due: er, uses a hydraulic presser that juices,” Ms. Harouvis said. applies thousands of pounds of Cleveland Clinic registered dieti- February 3 January 23 January 28 pressure to slowly extract the raw cian Kristin Kirkpatrick acknowl- vegetable and fruit juice. edges that cold-pressed juices The process occurs in a 39-de- provide the vitamins and minerals gree room to prevent oxidation that most consumers otherwise Book your ad today! Contact Michelle Sustar at 216-522-1383 or and chemical breakdown, there- wouldn’t consume in the recom- [email protected]. fore preserving vital vitamins and mended quantities, but cautions minerals. The juices then are im- her patients against misinterpret- 20140113-NEWS--14-NAT-CCI-CL_-- 1/9/2014 3:59 PM Page 1

14 CRAIN’S CLEVELAND BUSINESS SMALL BUSINESS JANUARY 13 - 19, 2014 Tax increase can be minimized with the right structure s business owners are as- PETEDEMARCO $150,000 of the individual’s earn- reduce the exposure to the in- must also take a careful look at the sessing their tax status ings, or the earnings that exceed creased self-employment tax. operating agreement and other with the conclusion of the the $200,000 threshold. Under “check the box” rules al- documents governing the entity. 2013 tax year, they may Business owners who will be af- lowed by the Internal Revenue Ser- LLCs and partnerships often are findA good reason to consider fected by the increase and who are vice in the 1990s, a business entity built on flexible arrangements that changing the way the business is organized as limited liability com- organized as a partnership or LLC allow for different classes of own- organized. panies (LLCs) or other partnership can change its classification to S ership and uneven distributions. S Business owners who are accus- structures might find relief in corporation relatively simply. corporations, however, do not al- tomed to paying self-employment changing their organizational Making such a change in classi- low such distinctions. tax may have noticed an increase TAX TIPS structure to an S corporation. And fication means the LLC makes a S corporations allow for only in the self-employment tax rate for there’s good news for those who “deemed” transfer of all its assets one class of stock, although they 2013. might consider such a change: It’s and liabilities in exchange for the can differ in terms of voting rights. The Affordable Care Act in- above those thresholds. not as difficult as it might sound. corporation’s stock, and then dis- That means the LLC or partner- creased the Medicare tax applied to For business owners whose in- Partners in a partnership struc- tributes the stock to the owners in ship would need to amend or wages, compensation and self-em- come falls below those thresholds, ture as well as members in an LLC a complete liquidation. The tran- replace certain governing docu- ployment income for taxable years the increase in Medicare tax may generally pay self-employment tax sition generally is a tax-free event. ments to assure they conform to S beginning after Dec. 31, 2012, have seemed like a non-event. on their respective share of the And there’s more good news for corporation requirements. when those income amounts ex- However, for business owners partnership’s trade or business in- business owners who might con- For business owners who will feel ceed certain thresholds. whose income is nicked by the come. Shareholders in an S corpo- sider such a transition. Such an the effect of the new Medicare tax The rate increased by 0.9%, rate increase, the effect will be no- ration, however, are not subject to election can be made mid-year, increase now settling into place, a from 2.9% the year before to 3.8% ticeable enough that they might self-employment tax on their giving owners some flexibility. change in ownership structure for 2013, for those who report want to consider an alternative pass-through income or distribu- Normally, a change in entity clas- might hold some appeal. ■ earnings in excess of $200,000, or business structure to minimize it. tions from the business. sification is a time-sensitive $250,000 for joint filers. A business owner with self-em- That means if a business owner process involving carefully orches- Peter A. DeMarco is vice president That increase pushed the Social ployment income of $350,000, for is actively involved and participat- trated deadlines, depending on and director of tax services for the Security tax rate on self-employ- example, will pay a total of $11,500 ing in the business, and therefore the form that is used and the pur- regional accounting and business ment income above the 15.3% rate in Medicare tax, which includes drawing a reasonable and fair pose for making the election. consulting firm of Meaden that has been in effect many years, $1,350 as a result of the new tax; salary out of the business, the Any business owner who would & Moore, headquartered in for those who report net earnings the 0.9% increased rate applies to transition to an S corporation can consider making such a transition Cleveland.

Past: More preservation consultants COLLEGES GET INTO THE ACT Historic preservation is about pre- “urban planning with a strong his- serving buildings, districts, struc- toric preservation lens,” said Dr. Ry- were needed after 1980s downsizing tures and other resources. berg-Webster, who also is a trustee In turn, historic preservation con- with the Cleveland Restoration Soci- continued from PAGE 11 sultants understand the laws that pro- ety. The two consultants formed the tect history-rich resources but also Course content covers policies historic preservation practice last how those laws may support and en- and programs related to historic year, with offices in Chagrin Falls hance a developer’s or builder’s preservation, how local entities op- and Cleveland Heights, after years goals to rehabilitate a historic proper- erate and participate in the historic of working independently. Spill- ty. And, there are other aspects to preservation decision-making way LLC brought them together, historic preservation: architectural process and how historic preserva- in 2010, when they worked on pro- surveys, research of individual build- tion efforts fit in with the contempo- ject components, and the pair’s ings, historic nominations. rary needs of city revitalization, she firm continues to consult on the “It represents this whole move- said. project. ment from saving monumental build- In the past five years, the number The “hand-holding” Mr. Darden ings to being an economic develop- of master’s degree programs in the describes is more than three years ment tool within the broader context United States, as listed by the Na- of historic preservation consulting of community planning,” said Wendy tional Council for Preservation Edu- that included: ■ listing Spillway on the Na- Hoge Naylor, a historic preservation cation, has increased from about tional Register of Historic Places; consultant with NaylorWellman LLC. two dozen to three dozen; the ■ receiving Federal Historic The work is specialized, the laws dozen or so undergraduate pro- Preservation Tax Credit approval; complex. Ongoing communication grams have remained constant, ■ submitting and guiding an and diplomacy are critical for deal- said Bari Oyler Stith, director of ing with banks, real estate agents, graduate and undergraduate pro- Ohio Historic Preservation Tax SHARON SCHNALL developers, property owners, con- grams in historic preservation at Ur- Credit application that was award- Wendy Hoge Naylor, left, and Diana Wellman helped Spillway in Chagrin Falls tractors, architects, advocates, gov- suline College. ed an allocation; (where they are pictured) get listed on the National Register of Historic Places. ■ coordinating an EPA grant for ernment representatives and im- Since 1998, Ursuline College has stream restoration and lowering of stand when and how saving a tion are among her clientele. pacted residential neighbors and offered a bachelor of arts in historic an adjacent dam. building or structure, renovating About 75% of her client work re- merchants. preservation; since 2006, a master “They got us to where we’re at,” and adapting a building, or, when lates to Section 106 activity, which “There is a demand for practition- of arts in historic preservation — Mr. Darden said. “(They) were able needed, demolishing a structure is based on a section included in ers with the knowledge and sensibili- both are the only dedicated degrees to answer every question from a can and should happen. the National Historic Preservation ty,” said Stephanie Ryberg-Webster, in historic preservation offered in historic process; the application “The strange thing about this Act of 1966, and involves review- an assistant professor of urban Ohio, said Dr. Stith, who also is an process — what we can and cannot field is there’s a professional ap- ing the potential impact of feder- studies with Cleveland State Univer- assistant professor of historic do — that was all new to me.” proach to it and there’s an activist ally funded projects on historic re- sity’s Maxine Goodman Levin Col- preservation. Total construction costs, he approach,” said Courtney Fint sources. That work, she said, is lege of Urban Affairs. Ursuline is developing a historic said, are just less than $10 million Zimmerman, a historic preserva- steady and expected to increase. In August, Cleveland State’s Col- preservation certificate program with $6.5 million qualifying as re- tion consultant and founder of Section 106 review, she said, lege of Urban Affairs launched a with availability, pending administra- habilitation costs eligible for gov- Aurora Research Associates LLC of prevents historic structures from four-course, 16-credit certificate in tive approval, anticipated by August ernment financing initiatives. Silver Lake in Summit County. being unnecessarily torn down in historic preservation. The urban-fo- 2014, she added. Upon completion of the rehabili- “You can’t be completely favor of building a direct route. To cused graduate certificate offers — Sharon Schnall tation, that $6.5 million cost will against building new things and promote preservation, she said be lowered by approximately $3 development — we do live in a clients have to be shown possibili- million through a $1.65 million continuum,” she said. “I’ve defi- ties and presented with solutions, credit activity, said Mr. McQuillin, historic tax credits for three prop- Ohio tax credit refund and $1.32 nitely learned to have a balanced adding, “Section 106 gives us a whose past client work includes erties he formerly owned and million federal tax liability offset, and practical approach to devel- chance to hammer out a balance.” The Higbee Building, Terminal restored in Brooklyn Centre. His Ms. Wellman said. opment and historic preservation; A complex process Tower and Nela Park. Westlake business and residence my clients have to do the same Tax credit consulting, he said, are located in a 175-year-old farm- A niche profession thing.” The idea of an independent has been critical to the historic house that he restored. Ultimately, Historic preservation consul- Ms. Zimmerman also is a li- preservation consultant expanded preservation profession’s survival. he plans to relocate, professionally tant activity often is associated censed professional civil engineer. in the early 1980s with downsizing More importantly, developers and and personally, to a 7,000-square- with the preservation of historic After completing her graduate ed- activity of the Reagan era and fed- property owners recognize the foot Ashland County circa-1840s resources with architectural or so- ucation in historic preservation at eral budget cuts; architecture complexities associated with the property that he currently is cial significance. Some people, Columbia University, she worked firms also laid off in-house his- tax credit procurement process restoring. however, romanticize or stereo- six years with the West Virginia Di- toric preservation consultants, and the need to use a consultant “I’ve had to make the decisions; type those efforts as determinedly vision of Highways. She began said Steve McQuillin, owner of with specialized expertise. I’ve had to make the mistakes; all passionate, solely to prevent de- consulting in 2009 and established Steve McQuillin & Associates of And, for Mr. McQuillin, the ex- that helps me to advise others on molition. her business in 2011; the West Vir- Westlake, founded in 1982. pertise goes beyond consulting to their projects,” he said. “It’s not An idealized view, but historic ginia Division of Highways and About 75% of his historic preser- first-hand and hands on. just theoretical. I’ve experienced preservation consultants under- Ohio Department of Transporta- vation client activity is based on tax Mr. McQuillin has secured it.” ■ 20140113-NEWS--15-NAT-CCI-CL_-- 1/10/2014 4:23 PM Page 1

JANUARY 13 - 19, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 15 Care: High-deductible plans add incentive to shop for best deal

continued from PAGE 1 cheapest plans offered on the feder- quite a bit more out of pocket.” vices released a list of the top 100 ser- health care that are trying to make “People are finally turning into al marketplace could leave patients vices and the amount hospitals na- it easier for people to shop around. the consumers they should have on the hook for $5,000 or $6,000 be- A clearer picture tionwide charged for those services. For the last few years, insurers have been a long time ago and take more fore their insurance kicks in. Hospitals are poised to benefit The prices, especially locally, varied rolled out online tools allowing charge of their situation,” said Joe University Hospitals, the region’s from alerting patients on the front widely. A person seeking treatment their enrollees to compare prices. Lapinski, vice president for man- second-largest health system, plans end of their financial responsibili- for chest pain at the Cleveland Clin- UnitedHealthcare offers an on- aged care operations at the Sisters to launch a pricing system this year ties. ic’s main campus, for instance, line tool with cost estimates for of Charity Health System, which op- that will look at the historical claims As Crain’s has reported previous- would be charged $21,855 while the more than 80 geographic areas cov- erates St. Vincent Charity Medical for a certain procedure, digest the ly, hospitals already have witnessed same treatment at University Hospi- ering hundreds of procedures and Center in Cleveland. particulars of a patient’s insurance their bad debt loads climb in recent tals’ main campus would cost treatments, including surgeries, lab Anecdotally, officials at many plan and spit out an expected bill years as patients — often those with $13,887, according to the feds’ data. tests, radiology tests and office vis- hospitals say they already have seen for that person. While he wouldn’t high-deductible health plans — Hospitals bristled at the data its. Medical Mutual of Ohio, which an increase in those seeking out a disclose the estimated cost of the don’t pay their hulking bills. An in- dump, noting that patients rarely is headquartered in Cleveland, of- deal. They say the shift is driven by system, Brent Carson, UH’s vice ability to collect payments could pay the full sticker price. Final bills fers a cost estimator on its website, a boom in high-deductible health president of managed care, said it threaten hospitals’ ability to make depend on the negotiated payment which right now offers prices for plans, which employers have fa- was “significant.” up for $155 billion in cuts to their rates between their insurer and the standard procedures such as office vored in recent years as a way to get “Patients want to know more and federal reimbursements they agreed hospital. That said, health care ex- visits and lab tests. The insurer a handle on rising health care costs. more before they come for care to absorb in order to expand insur- perts suggest the release of the data, plans to expand the tool to include The launch of the Affordable Care what it’s going to cost them,” Mr. ance coverage under Obamacare. at the very least, alerted consumers more complex procedures, such as Act, or Obamacare, is expected to Carson said. “Many have high-de- “We want them to have as much of the vast price variation among lo- knee and hip replacements. accelerate that trend, as many of the ductible plans now and are paying information as we can provide up cal providers and could spawn fur- Medical Mutual also plans to in- front,” said Karen Mihalik, execu- ther shopping. troduce what it’s calling a “deci- tive director of patient financial ser- “We haven’t seen that (attention sion-support tool,” an online re- vices at the Cleveland Clinic, which to price) in this industry before,” source where members can look up is looking to build a pricing tool said Gary Ryan, a partner in Price- information about a procedure Industry: Manufacturing similar to the one UH is planning. waterhouseCoopers LLP’s Lake Erie they’re considering and see “The industry has changed, and market who works with health care whether there are alternatives. the patients have a lot more respon- clients. “Consumers haven’t been “Our ultimate goal of the tool is finally is picking up speed sibility,” Ms. Mihalik said. “It’s diffi- as educated as they are today. to make our members better con- cult for patients and challenging for Providers need to think about price sumers of health care and get them continued from PAGE 1 Mr. Stone has been watching, us well. Dollars are costly to collect.” transparency.” the right care in the right setting at along with the rest of the chief eco- the right price,” said Paul Mancino, All of those factors are increasing Last spring, consumers experi- Insurers in on it, too order volumes for domestic manu- nomic indicators, the Institute for enced sticker shock when the U.S. Medical Mutual’s vice president of facturers, Mr. Moutray said. Supply Management’s manufactur- Centers for Medicare & Medicaid Ser- Hospitals aren’t the only ones in managed care operations. ■ At the same time, the threat of a ing purchasing managers’ index, government shutdown has been which is widely viewed as a chief in- eliminated for the foreseeable fu- dicator of manufacturer’s optimism ture, energy costs are down and or lack thereof. While that index borrowing costs are expected to re- inched down from a two-year high of main low. In other words, there’s 57.3 in November to 57 in Decem- less cause for apprehension on a ber, it remains well above the magic number of fronts as well. mark of 50, Mr. Stone said. When the While Mr. Moutray’s view is na- index is below 50, it’s a sign the econ- tional in scope, he said he has no- omy may slow or contract, while an ticed that Northeast Ohio has par- index above 50 is a strong indicator ticipated in the economic of near-term growth, he said. improvement — and both local “That’s an indicator that manu- manufacturers and industry watch- facturing is doing OK — even better NOMINATIONS ers say he’s correct. than OK,” Mr. Stone said. He noted For example, the Independence- that U.S. exports to China also have based Precision Metalforming Asso- been up of late, and even housing ciation found in December that its starts in the United States are ex- members were markedly more opti- pected to continue to increase this mistic about their business year and into 2015, when PNC pre- NOW OPEN! prospects than they were in Novem- dicts there will be more than 1 mil- ber. The group polls its nearly 900 lion new housing starts nationwide. members each month to gauge their Growth depressants wane view of the economy. Although the group is national, its membership is But, perhaps more than anything weighted toward Northeast Ohio. else, it’s the easing of uncertainty In its December polling, the asso- that has had a positive impact on the ciation found that 43% of its re- economy, said economist Ken May- spondents anticipate their orders land, founder and president of will increase over the next three ClearView Economics in Pepper Pike months, while only 14% expect to — and a popular prognosticator see a drop in orders. That outlook is among many area manufacturers. a noticeable improvement from Dr. Mayland said he expects the September, October and Novem- nation’s gross domestic product to ber, when only about one-third of go from an increase of 1.9% in 2013 the respondents expected to see a to a healthy 3% or so in 2014. near-term increase in orders. “The pieces are falling into place That optimism also is translating for an economy that has a much into a better outlook for employ- better tone in 2014,” Dr. Mayland WeW are looking for women with interesting ment, as only 9% of the association’s said. survey respondents reported any of In 2013, temporary tax cuts for storiess about the business and personal their production workers either were most Americans that were estab- laid off or were working reduced lished during the recession expired, hours. That’s the lowest percentage he noted, while other taxes also challengesc they’ve faced — and overcome. of companies with workers on re- went up and government spending duced hours since April 2012. was cut by sequestration and even a NomineesN can be anyone who’s work has “PMA members are quite opti- government shutdown in October. mistic about the first quarter of “You add these up and you prob- Ť¡¥£¤¤£န 2014, and they are especially upbeat ably have more than $200 billion of compared to December 2012,” said drag that was heaped on the econo- William E. Gaskin, association pres- my, which the economy had to ab- ident. “While current shipping sorb in 2013,” Dr. Mayland said. trends are somewhat lower than “That’s a depressant on growth.” Presented by three months ago, that is a typical The economy adjusted and eked end-of-year pattern, and the level of out some growth in spite of those ToTo nnominateominate a WomanWom of Note, please visit: optimism for new orders is signifi- factors, Dr. Mayland said. Now that cantly more positive.” the major sources of anxiety are gone or waning, it’s like letting up CrainsCleveland.com/WON On the right side of 50 on the brake pedal of a car while At PNC Corp., chief investment also holding down the gas. Deadline: March 31 strategist Bill Stone sees similarly “We’re bound to pick up some bright skies ahead. speed,” Dr. Mayland said. ■ 20140113-NEWS--16-NAT-CCI-CL_-- 1/10/2014 11:15 AM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 13 - 19, 2014 Arhaus owners sell minority stake to private equity firm By SCOTT SUTTELL new markets and grow our e-com- mitted capital, and it has invest- release that Arhaus has “created a [email protected] merce presence” on Arhaus.com, ments in 13 companies with total unique shopping experience in the ON THE WEB Story from: www.crainscleveland.com John Reed said in a news release sales of more that $8 billion. It in- home furnishings category.” Private equity firm Freeman last week. “Freeman Spogli’s exper- vests primarily in middle-market “The company’s loyal customers Spogli & Co. has acquired a minor- tise in the retail industry will be an companies in the consumer and value its distinctive merchandise, ity stake in Arhaus LLC, the Walton Arhaus, founded in 1986 by CEO important resource to us as we distribution sectors. The firm lists visually inspiring stores, and en- Hills-based home furnishings re- John Reed and his father, Jack Reed, grow our business.” dual headquarters of Los Angeles gaging customer service,” Mr. Bru- tailer. operates 46 stores in 18 states. On its website, Freeman Spogli and New York. tocao said. “We are pleased to be Financial terms of the transac- “We are excited to partner with says it manages three investment Brad Brutocao, a general partner partnering with John and his team tion were not disclosed. Freeman Spogli as we expand into funds totaling $2.7 billion in com- of Freeman Spogli, said in the new in this exciting growth story.” ■ NORTHEAST OHIO'S TOP SBA LENDERS RANKED BY DOLLAR VALUE OF 7(A) LOANS IN FISCAL 2013

Company name Dollar value of approved loans Dollar value of approved loans Number of loans fiscal Number of loans fiscal Rank Headquarters fiscal 2013 fiscal 2012 % change 2013 2012 % change Huntington National Bank 1 Columbus 91,987,400 101,713,800 -9.6% 844 735 14.8% KeyBank NA 2 Cleveland 19,280,000 38,701,600 -50.2% 71 114 -37.7% Lorain National Bank 3 Lorain 18,172,100 8,336,300 118.0% 41 38 7.9% Live Oak Banking Co. 4 Wilmington, N.C. 16,407,000 7,838,000 109.3% 14 8 75.0% FirstMerit Bank NA 5 Akron 14,011,100 16,794,300 -16.6% 55 45 22.2% U.S. Bank NA 6 Minneapolis, Minn. 12,687,200 5,327,900 138.1% 46 24 91.7% Fifth Third Bank 7 Cincinnati 12,537,600 6,344,500 97.6% 15 12 25.0% JPMorgan Chase & Co. 8 New York 11,103,600 9,169,800 21.1% 53 59 -10.2% Celtic Bank Corp. 9 Salt Lake City 6,833,000 2,300,000 197.1% 8 2 300.0% Grow America Fund Inc. 10 New York 6,541,000 3,558,000 83.8% 13 5 160.0% First Western SBLC Inc. 11 Dallas 6,450,000 2,565,000 151.5% 2 3 -33.3% RidgeStone Bank 12 Brookfield, Wis. 6,240,000 3,100,000 101.3% 3 1 200.0% Peoples Bank NA(1) 13 Beachwood 5,435,000 10,723,000 -49.3% 13 21 -38.1% Citizens Banking Co. 14 Sandusky 4,875,000 519,800 837.9% 7 3 133.3% PNC Bank 15 Pittsburgh 4,739,000 3,576,100 32.5% 13 23 -43.5% Evolve Bank & Trust 16 Memphis, Tenn. 4,735,000 ———— ———— 2 ———— ———— Home Savings & Loan Co. 17 Youngstown 4,325,000 2,037,500 112.3% 4 3 33.3% Cortland Savings and Banking Co. 18 Cortland 3,074,700 1,770,000 73.7% 7 3 133.3% State Bank and Trust Co. 19 Defiance 2,902,000 1,526,500 90.1% 6 4 50.0% Newtek Small Business Finance Inc. 20 New York 2,901,300 1,019,000 184.7% 4 2 100.0% Home Loan Investment Bank FSB 21 Warwick, R.I. 2,756,100 1,475,000 86.9% 2 1 100.0% Consumers National Bank 22 Minerva 2,491,000 1,912,300 30.3% 3 12 -75.0% Southwest Capital Bank 23 Las Vegas, N.M. 2,217,400 ———— ———— 1 ———— ———— Sterling Savings Bankd DBA Argent Bank 24 Spokane, Wash. 2,141,400 ———— ———— 3 ———— ———— Westfield Bank FSB 25 Westfield Center 2,088,000 4,082,000 -48.8% 11 15 -26.7% Growth Capital Corp. 26 Cleveland 1,544,700 ———— ———— 9 ———— ———— Spirit of Texas Bank SSB 27 College Station, Texas 1,511,100 ———— ———— 5 ———— ———— The Farmers National Bank of Canfield 28 Canfield 1,460,000 1,447,400 0.9% 2 8 -75.0% The Bancorp Bank 29 Wilmington, Del. 1,143,900 324,000 253.1% 2 1 100.0% Heartland Bank 30 Gahanna 1,102,500 ———— ———— 1 ———— ———— First Utah Bank 31 Salt Lake City, Utah 1,090,000 ———— ———— 1 ———— ———— CertusBank NA 32 Easley, S.C. 1,081,000 ———— ———— 2 ———— ———— Croghan Colonial Bank 33 Fremont 1,036,700 577,800 79.4% 7 4 75.0% Portage Community Bank 34 Ravenna 1,012,600 3,531,200 -71.3% 9 15 -40.0% This list was compiled from information provided by the Cleveland District office of the SBA for fiscal years ended 9/30/2013 and 9/30/2012. The Cleveland District covers 28 Researched by Deborah W. Hillyer northern Ohio counties. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Ohio Commerce Bank acquired by People's in October 2013. 20140113-NEWS--17-NAT-CCI-CL_-- 1/10/2014 2:15 PM Page 1

JANUARY 13 - 19, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 Show: Tressel isn’t sure Indians: Barren’s dad coached in area continued from PAGE 3 The companies shared informa- and athletic director at Notre about future destination Tribe, P&G team up tion, which they weren’t allowed to Dame-Cathedral Latin. disclose. As part of the agreement, In 1991, Dan Barren got home af- continued from PAGE 1 coaching in the NFL. Mr. Shapiro was able to convince Mr. Shapiro made a couple of ter coaching at a camp, had a mas- “There might have been some When pressed about the presi- Mr. Barren — a lifelong Indians fan speeches before P&G executives, sive heart attack and died at age 59. skepticism when I came to work dent’s job at the University of — to leave an impressive career at th and Mr. Barren’s opinion was high- One of Brian’s older brothers, here,” Mr. Tressel said in an interview Akron, Mr. Tressel’s response was P&G, which ranked 35 on Forbes’ ly valued at Progressive Field. Mark, a former graduate assistant at 2013 list of the world’s largest pub- last Tuesday, Jan. 7, with Crain’s. similar. The university’s trustees Mr. Shapiro said Alex King, the In- Ohio State under Earl Bruce, quit lic companies, in part because of a “People thought, ‘He’s going to come only recently outlined what they dians’ vice president of marketing his job in the financial industry to business relationship they devel- here and kind of be an ornament and were looking for in the next presi- and brand management, is a former succeed his father as the football oped long after they were done go out to lunch occasionally and ask dent and began calling for appli- brand manager at P&G who was coach at NDCL. In 2011, a day shy playing football. someone for money.’ I understand cants in late December. hired by the Tribe in 2011 “largely of the 20th anniversary of his father’s A few years ago, Robert Steele — why people might have thought that.” “I haven’t really digested nor because of the input of Brian.” death, Mark Barren died suddenly then a vice chairman at P&G and Since then, Mr. Tressel’s responsi- have I had the opportunity to sit “We have applied and bounced a of a heart attack at age 51. now director of Green Mountain bilities have grown to include some down with any of the folks who have lot of things off Brian and some senior Brian Barren, who is 47, gets Coffee Roasters — shared a suite of the most important functions of run this search to see if I would dare choked up when he discusses his with Mr. Shapiro at an Indians brand leaders at P&G,” Mr. Shapiro the university — recruitment, admis- think that I would be what they strong family ties. He believes by re- game. The Tribe president asked said. “When you have those ex- sions, student advising and market- need,” Mr. Tressel said. turning to Northeast Ohio to work Mr. Steele if he knew his former col- changes about your strategies and ing, among them. Some perceive the He added, “If I will, (it’ll be) based plans, it becomes pretty clear whether for the team he rooted for his whole growing role as evidence Mr. Tressel upon what I learn about what lege football teammate, Mr. Barren. Quite well, it turned out. you align with someone or not.” life, he will be able to have the best is being groomed to succeed Dr. Luis they’re looking for.” Mr. Shapiro said the Indians have of both worlds — family and a job Proenza, who announced last August At the time, Mr. Barren was run- Hey, coach ning “about a $9 billion business for relied on Mr. Barren’s extensive un- he loves. he would step down after 15 years as derstanding of the “complex rela- His mom lives in Columbus, as Students, for the most part, still P&G” that Mr. Steele was responsi- president of the university. Both men tionship” between branding and does a lot of his family. call him “coach,” and he doesn’t ble for globally, Mr. Barren said. deny such is the case. “I looked at an opportunity— I’d have a problem with that. His career “He (Mr. Steele) called me up the marketing. The team’s president Instead, Mr. Tressel, now 61 and call it a life choice — as I balanced in coaching is what led him to his ad- following Monday morning and says his newest hire comes from a the university’s executive vice pres- the choice of leaving a company I ministrative role at the University of said, ‘We can learn from the Indi- company that is as effective as any ident for student success, views his loved and where I had a great rela- Akron, where he earned his master’s ans. Mark has a vision for where he business in the world at “process growing portfolio as evidence he improvement and driving results.” tionship, with my family,” Mr. Bar- has found his footing in academia. degree in education. Last fall, Mr. wants the Indians to go,’ ” Mr. Bar- “That’s what we need to be better ren said. “At the end of the day, I University officials cite a boom in Tressel also taught a course on the ren recalls. at in every facet,” Mr. Shapiro said. love my family a little bit more.” student applications as proof that “Principles of Coaching” with former Mr. Barren then attended a Tribe Zips football coach Jim Dennison. game and spent time with Mr. Brian and his wife, Kris, have two Mr. Tressel and his team’s efforts Family ties sons. Billy attends Wake Forest Uni- are working. As of last week, the “He cares enormously about the Shapiro and other members of the kids, and he demonstrated that with Indians’ front office. From there, a Mr. Barren, the fifth of six kids, versity, and Brad is a sophomore at university said it had received 48% Lakota East, a suburban Cincinnati more freshman applications than it his players,” Dr. Proenza said. relationship was forged — one that grew up in the Columbus area as high school. Brad and his mom like- had at this point last year. Dr. Proenza crafted Mr. Tressel’s didn’t include Ivy League football the son of a high school football ly will stay in the Cincinnati area un- “There’s no question what Dr. now-expansive role around the or actor Dean Cain (another former coach. til Brad graduates high school. At Proenza has assigned and asked me strengths he developed as a coach. Princeton teammate of Messrs. “The only baseball games we saw that point, the family will move to to collaborate with others about are While at Ohio State, Mr. Tressel said Barren and Shapiro). were on TV,” he said. “But I was al- Northeast Ohio, a journey Brian’s fa- extremely challenging,” he said. he’d actively recruit 25 students “We started to build networks be- ways an Indians fan. I fell in love ther made after Brian finished up his “Having been in a challenging role each year in the hope 16 would sign tween P&G and the Indians’ front with the Indians as a little boy.” studies at Columbus Academy near- for a long, long time (as a football on with the steam. His insists his job office, and we started to share best His late father, Dan, was head ly 29 years ago. coach), if I weren’t as challenged in at the University of Akron is essen- practices,” primarily related to mar- football coach and a math teacher “He’s a guy who really will add a my next chapter in life, who knows tially the same, though on a grander keting and branding, Mr. Barren at Columbus Academy. When Bri- lot to everyone in our organization, if it would be fulfilling?” scale, as he’s looking for about 4,500 said. “We started to see and learn an, the quarterback, graduated students to commit. what Mark was trying to do.” from high school in 1985, Dan took including me,” Mr. Shapiro said of Jim Tressel: The next (blank) In addition to recruiting, Mr. Tres- The corporate giant and the a job as head football coach and Mr. Barren, his second-string co- Much has changed for Mr. Tres- sel has been tasked with ensuring baseball team had what Mr. Barren athletic director at Gilmour Acade- hort on what has proven to be a sel over the last two years. those students who attend the uni- termed a “bilateral confidential my in Gates Mills, and three years Princeton Tigers baseball, football ■ His paycheck — now $210,000 a versity leave with a diploma in hand. agreement.” later would become football coach and business juggernaut. year — is certainly smaller than the It’s a challenging task, as only 40% of roughly $3.5 million he earned in the university’s first-time, full-time his final year at Ohio State. The man students who enroll at its main cam- known as “The Vest” now dons the pus graduate within six years, ac- University’s of Akron’s navy and cording to the most recent data. gold instead of the Buckeyes’ scar- To boost that number, Mr. Tres- let and gray. He’ll still sign auto- sel began recruiting so-called “en- graphs, but his signature often is re- couragers” to assist the university’s served for acceptance letters sent to advising team in aggressively reach- high schoolers he hopes will enroll ing out to at-risk students. At pre- at the University of Akron. sent, the university has about 18 en- Since leaving Ohio State, Mr. couragers and plans to add five Tressel has been rumored for sever- more this semester. He launched al jobs. Some pegged him as the similar programs while coaching at next president of Youngstown State Youngstown State and Ohio State. University, where he held his first At the same time, he has helped head coaching job. Despite any recruit more than 700 people for the sanctions the program might have Roo Crew, a group designed to con- incurred, Dr. Proenza tried to hire nect alumni and others in the uni- him as the University of Akron’s versity community with students to next football coach, though Mr. help with job placement. Tressel was more interested in the Dustin Fox, a defensive back on An SBA loan could be academic side of the house. Ohio State’s 2002 national champi- Most recently, media reports sug- onship, described his former coach the ﬁrst chapter in gested Mr. Tressel was in the run- as a father figure of sorts. Mr. Fox, ning for the head coaching gig at the now a radio host on 92.3 The Fan in your success story. Cleveland Browns — a report the Cleveland, said it made sense that team quickly denied. At about the his old coach has taken on a recruit- Your business may be small, but your goals are big. same time, three 10-year-old girls ing role for the University of Akron. An SBA loan from KeyBank can help you with ﬁnancing from Granville, Ohio, produced a It was Mr. Tressel who persuaded for a new location, new equipment, more inventory, video that since has gone viral, Mr. Fox to attend Ohio State instead or even an acquisition. We are proud to have been pleading with the man who led the of Penn State University. named the 2012 SBA 7(a) Large Lender of the Year, Buckeyes to a national champi- “He’s ridiculous when it comes to and we’ve lent more than $8 billion to community onship in 2002 to take over the recruiting,” Mr. Fox said. “He defi- businesses since September 2011. That’s a lot of nitely stole me away from Penn State struggling Browns organization. local success stories. Let’s start writing yours. “I was caught totally off guard,” at the last minute.”While Mr. Tressel said Mr. Tressel, who learned of the hasn’t closed the door on the possi- To connect with a Key SBA loan specialist, stop speculation while on a layover in At- bility of coaching again, he said he’s by a local KeyBank branch or visit key.com/sba. lanta. “I haven’t had discussions, “always had the mentality that wher- haven’t applied and not even pored ever you are is the greatest place in over the newspaper to see what they the world.” Over the next five years, feel as if they need.” he isn’t sure where he’ll end up. Late last week, Mr. Tressel’s “I’d like to say I’ll have a little more coaching aspirations bubbled back time to myself, do the traveling I nev- Pictured: Costas Mavromichalis, owner, Constantino’s Market, and his daughter, Anna Mavromichalis, general manager. SBA Preferred Lender. All credit products are subject to credit approval. Banking products and services are offered by KeyBank N.A. Equal Housing Lender. to the surface in an interview with a er did,” he said. “But I don’t know if ©2014 KeyCorp. KeyBank is Member FDIC. ADL6890 Columbus radio station when he that’s me. I would probably be the said he hadn’t closed the door on worst judge of where I’ll be.” ■ 20140113-NEWS--18-NAT-CCI-CL_-- 1/10/2014 3:54 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM JANUARY 13 - 19, 2014 Deal: Volume of inquiries and engagements has been heavy of late continued from PAGE 3 a buyer, you’re in the forefront.” land investment banking firm, Texas is one. The upper North- is buying things correctly and making More companies appear to want MelCap, which does a bigger since its founding in 2010 has of- west is another. sure that they fit correctly.” external help, too, in chasing down business representing sellers, has fered outsourced corporate devel- To that end, in his new role, Mr. deals. Local buy-side advisers, or been doing “a few” more buy-side opment work, and during that time Sibits will spend a lot of time on the Money begins to talk those professionals who make their searches, according to Mr. Mel- roughly 20% of its client base has road, “dating.” Though she isn’t seeing a trend living representing would-be buy- chiorre. retained it to find deals for them “Selling is like dating,” he said. of companies hiring internal M&A ers, say business has picked up dra- and market their interest to the “You need to build a relationship. executives, Lauren Rich Fine matically in recent months. Singular focus deal community, according to It’s really a matter of getting to wouldn’t be surprised if more ded- “It’s pre-Great Recession levels When CBiz’s Mr. Sibits answered managing director Brian Powers. spend one-on-one time with peo- icate resources to M&A should 2014 of activity,” said Mathew J. Hanson, a reporter’s phone call last week, he This year, though, Mr. Powers ple, primarily in informal situa- prove to be similar to 2013 in terms managing director of Emprise Part- was speaking from what he termed said acquisition-minded clients will tions, going to dinner, going to of a “steady low growth economy.” ners, a Beachwood firm that does a “great place to hunt.” Twice a drive that percentage to a third or lunch, taking people outside of She’s an executive search consul- buy-side representation for private, year, the 100 largest certified public more, thanks to “a very large in- their office where you get a feel for tant with Howard & O’Brien Inc., middle-market companies. accounting firms — save the indus- crease over the last few months” in who and what they are.” which conducted the search for A. The volume of inquiries and en- try’s Big Four — meet, and it’s demand for such services. As a re- Cleveland-based Compass Self Schulman’s new senior director of gagements in the fourth quarter of prime time for expanding relation- sult, Mr. Powers said, League Park is Storage LLC is another company that corporate business development. 2013 was the busiest it has been in ships and identifying potential ac- interviewing to fill a couple corpo- has hired someone in-house to do the “Most larger companies in several years, Mr. Hanson said, and quisition prospects, Mr. Sibits said. rate development positions, which, dating. Last February, it announced Cleveland already have dedicated he expects that pace to continue M&A work was something Mr. if filled, would double that staff. the hiring of director of acquisitions corporate and business develop- throughout 2014. One impetus, he Sibits did a lot as president of the fi- “These are companies that are Steve Hryszko, who had worked as an ment and strategy professionals,” said, is that many companies’ sales nancial services subsidiary of CBiz. interested in doing large transac- investment broker for the company she said. “I think the next size down still aren’t what they were before But now that he has passed the tions, both in terms of the deal size since its founding in 2007. — the A. Schulmans and others — the recession, and gross domestic torch and assumed his new role as they’re looking to do and the num- “It was a realization of the fact could be on the cusp of dedicating product growth doesn’t carry the senior vice president of strategic ber of transactions they’re looking that … if we were going to grow, we resources. To have somebody promise of filling that gap. development, it’s going to be al- to complete,” he said. needed somebody to focus on the who’s very disciplined who’s seen a “They (companies) are tired of most his sole focus, he said. “Companies have cash to spend M&A activity to keep that momen- lot of activity is of enormous value.” fighting the battle of slow organic “It’s a very important part of our on acquisitions … and they are not tum,” said Todd Amsdell, president The way professional dealmak- growth,” he said. strategy for growth,” Mr. Sibits said. fully satisfied by the traditional deal and CEO of the self storage compa- ers see it, the more companies that While there isn’t a common in- “Our industry and other industries flow,” Mr. Powers said. “They want ny, which has acquired roughly 40 hire internal and external expertise, dustry or common size of the com- are in consolidating mode, where to start to develop their own propri- self storage properties, and, by the more deals they’ll actually panies that have sought buy-side you have an aging population, and etary deal flow. I don’t see any of virtue of the deals, their predeces- close. (They hope.) representation in the last year from (there’s) the demand for specializa- the factors that led to this slowing sor businesses. M&A practitioners also see com- MelCap Partners LLC in Medina, tion and greater depth. We believe down in the near future.” Increased competition, driven by panies’ investment in their M&A it’s a very attractive time for us to the availability of information about there is a common motivator — the Going out on dates strategies as a sign of optimism. competition they face, said Al Mel- be in the marketplace on a very properties and businesses for sale “To me, it’s a signal that … chiorre, president of the invest- proactive basis to get great compa- For CBiz, the goal is two- and by more investors interested in maybe the hesitancy is dissipat- ment banking firm. nies to … be part of our company. pronged: It wants to become a Top self storage, is another reason for the ing,” said Michele Connell, an M&A “There’s not as many quality op- “To have somebody who is fo- 10 firm, by number of CPAs, in five hire, Mr. Amsdell said. partner at the Squire Sanders law portunities in the market as there are cused on it versus just depending years in the 15 markets in which it “It’s not just about buying some- firm. “From the outside looking in, buyers,” he said. “Therefore, it be- on somebody bringing deals to you, operates, including Northeast thing,” he said. “It’s about buying there’s cash on the books, the re- comes more competitive and you I think keeps you out in front of the Ohio, and it has targeted five re- something correctly and integrating it. cession appears to be over. I think need to make more of a concerted curve,” he added. gions where the company doesn’t Anybody can go out and buy things. it’s just taken the companies longer effort … (to) make sure that if you’re League Park Advisors, a Cleve- have a presence, but wants one. The real trick in all this — the magic — to be certain that this was over.” ■ REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card AUCTIONS List your BUSINESS SERVICES C. W. JENNINGS INDUSTRIAL EXCHANGE Stys since 1962 Industrial, We have competition who sell Global Expansion Consulting Pallet Racking & Shelving Used. commercial, Construction • Acquisitions Call Us For Prices. Stys Inc sells used Metalworking, CNC Machinery, Exporting • Financing Fork Lifts, Scissor Lifts, Stretch Wrap Luxury Machines, ETC. (855) 707-1944 COMMERCIAL LAND FOR SALE Property or 216-241-7897 www.stysinc.com 1600 SOUTH DETROIT AVENUE Retail Space THINKING OF SELLING? TOLEDO, OHIO 43614 Free Market Analysis Crain’s Executive Recruiter Here! No Upfront Fees AUCTION DATE: 1/17/2014 See our listings at Sales Representative, Crain’s Cleveland www.empirebusinesses.com CONSTRUCTION TIME: 11:00 am DOORS OPEN AT 10:00 440-461-2202 National Wholesale SUPERINTENDENT DESCRIPTION: APPRAISED VALUE: $845,500.00 Business’ classifieds Sell products/services to re-sellers/end- Growing Commercial Construction For daily on-line users; communicate technical functions, Company located inBrunswick, CONTACT TOM KING 419-373-4309 will help you fill that systems, applied benefits. OH looking for experienced updates, sign up @ individuals. Travel involved. FOR FURTHER DETAILS space. REQUIREMENTS: CrainsCleveland.com/Daily • Bachelor’s Degree • Minimum 3-5 Years Salary based on experience. http://www.dot.state.oh.us/districts/D02/ Client Services • Self-Directed, Orga- Leave contact information at nized, Detail/Results-Oriented • Excep- (330)220-7978 and mail resumes Contact Denise tional Written/Oral Communications • Pages/LucasCountyGarageSiteSale.aspx BUSINESS to P.O. Box 60 Medina, OH 44258 Donaldson at FOR SALE Computer Skills • Travel up to 65% RESPONSIBILITIES: • Develop new business: prospect, cold To place your 216.522-1383 B-to-B Service Business in Stark County call, qualify, follow up • Identify/analyze Commercial Kiko Auction Highly-automated. customers’ needs to satisfy/anticipate Crain’s Attention Investors - Opportunity Knocking! [email protected] Profit $275,000. Ask $850K. product/service demands • Prepare com- Cleveland Business 21 Pad Mobile Home Park W/Commercial Fronts - Sing. Fam. 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KIKO Auctioneers For all the latest business (serving No. Ohio for 33 years) E-MAIL US YOUR AD... www.kikoauctions.com news...online 330-492-6294 [email protected] [email protected] 20140113-NEWS--19-NAT-CCI-CL_-- 1/10/2014 4:12 PM Page 1

JANUARY 13 - 19, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 THEINSIDER REPORTERS’ NOTEBOOK THEWEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Inner-ring suburbs Give Cardinal credit for Providing free financial literacy education JANUARY 6 - 12 for students is one reason for the partner- beckon Keller Williams another partnership ship, said Morris W. Beverage Jr., president The big story: Kent State University named ■ Keller Williams Realty Greater Cleveland ■ For the second of Lakeland. Beverly J. Warren, now provost and senior vice is expanding in key inner-ring suburbs with time, Cardinal Also as part of the partner- president of Virginia Commonwealth Universi- a new office in Rocky River and one that it Community ship, Cardinal Community has ty, as its 12th president. Dr. Warren will start her plans to open in late spring in Cleveland Credit Union has agreed to make “significant con- new role July 1. She will take over for Lester Left- Heights. opened a stu- tributions” to The Lakeland on, who has served as the university’s chief ex- The added offices are a big switch for dent-run branch Foundation and to award four ecutive since July 2006. She will earn a base Keller Williams, as the local group that at a Lake County scholarships per year to quali- salary of $450,000; Dr. Lefton’s annual salary is brought the Austin, Texas-based real estate school. fied students. $417,799. In a statement, Dr. Warren said Kent franchise to Cleveland in 2002 largely has The new loca- — Michelle Park Lazette State is an “institution on the rise” and that her operated from office in outlying areas such tion opened in goal is to be a “collaborative leader who is instru- as Pepper Pike, Strongsville and Westlake. “A” Building at Be on the lookout mental and inspirational in clearly defining a Scott Phillips Jr., president of the Keller Lakeland Com- for more Shoreway Cardinal Community Credit Union pres- shared vision and a sense of community” at the Williams-River office, said the new offices munity College in ident and CEO Christine Blake is shown residences school. are going into areas farthest from its existing Kirtland across offices in locations with the greatest density from the book- with Lakeland Community College pres- ■ A site overlooking Cleveland’s ident Morris W. Beverage Jr. A decision that’s warranted: Athersys of transactions by Keller Williams’ competi- store in early De- West Shoreway near the West- Inc. has seen its stock more than double in price tors. The Rocky River office is at 20033 De- cember. inghouse curve will become home to a 248- in recent weeks, and apparently is prepared to troit Road. The opening followed by about a year the unit apartment project if NRP Group of strike while its iron is hot. The Cleveland-based Mr. Phillips, who heads the downtown September 2012 launch of a student-run Garfield Heights has its way. biotech company that is developing stem cell Cleveland office, said that office will be branch at Lake Catholic High School, The project, which received conceptual therapies said it has entered into definitive maintained, though seven of its 23 agents though that branch is for the school’s stu- approval from the city of Cleveland’s Near agreements to sell 5 million shares of common have moved to Rocky River. All told, the dents and primarily offers savings accounts. West Design Review Committee last Tues- day, Jan. 7, would incorporate 229 suites in stock and warrants to buy up to 1.5 million Rocky River office opened with 35 agents. In contrast, the Lakeland branch is open The rest of its staff comes from four other to all Cardinal Community Credit Union a total of seven buildings of three or four sto- shares in an offering with expected gross pro- residential brokerages and people new to members and will offer checking accounts, ries in height. The project also includes 19 ceeds of $20.5 million. Athersys said all the par- the field. auto loans and mortgages. freestanding townhomes. The project would ticipants in the offering are current shareholders Mr. Phillips said Keller Williams is negoti- The branch has hired a dozen Lakeland be at 6102 Breakwater Ave., according to city of the company. See more, Page 3. ating final terms for its lease in Cleveland students. It’s intended as a partnership for documents. Heights. However, Keller Williams added financial education between the college and To proceed, the developers need to return Progressing toward the exit: Duke Re- three agents at the beginning of the year the credit union, said Christine Blake, pres- to the Near West Design Review Committee alty Corp. finally landed a buyer for five office with Cleveland Heights practices who are ident and CEO of Mentor-based Cardinal as well as Cleveland City Planning Commis- buildings in Independence that it has been try- working from Pepper Pike until the Cleve- Community. sion for additional reviews and more details. ing to peddle for nearly a decade, though it still land Heights office opens. The partnership with Lakeland includes a The Detroit Shoreway Development has other properties to sell before its exit from Keller Williams offices typically have mul- monthly program to teach topics such as Corp. on Jan. 30 plans to hold a community the market is complete. In a $62.4 million trans- tiple local shareholders, but Mr. Phillips said understanding credit reports, how to obtain meeting on the proposal at Our Lady of action, the buildings were acquired by a unit of he is going solo so far in Rocky River. a car loan and how to pay for college, Ms. Mount Carmel School, 6928 Detroit Ave. Five Mile Capital Partners LLC of Stamford, — Stan Bullard Blake said. — Stan Bullard Conn. Indianapolis-based Duke had the office buildings and others on and off the market since 2005, when the real estate investment trust de- WHAT’S NEW BEST OF THE BLOGS cided to leave the Northeast Ohio office and industrial markets for stronger regions. All told, the Excerpts from recent blog entries on A banner 2013, but 2014 … deal involves about 600,000 square feet of office CrainsCleveland.com. ■ Last year was particularly strong for U.S. space in Independence. The mother of invention financial institutions, with Cleveland-based KeyCorp among the standouts. Everyone knows its name: Southgate ■ The stuffy images of orchestras, including Bloomberg reported that the KBW Bank Shopping Center in Maple Heights is in new Cleveland’s, is long gone, and that’s helping Index of 24 lenders increased 35% in 2013, hands. Foresite Realty Partners, a real estate to stabilize their bottom lines. the most in 16 years, and the brokerage based in Rosemont, Ill., completed Orchestras took a big hit Standard & Poor’s 500 Capi- the sale of Southgate from a lender to Baltimore- during the recession, but now tal Markets Index of 13 secu- based America’s Realty LLC. The 788,130-square many “are recovering, partly rities firms and asset man- foot property dates from 1955 and now includes through across-the-board cost agers surged 49%, the most more than 75 businesses, according to Foresite, cuts, like printing programs on record. which managed the property during receiver- more cheaply, but also by targeting young All the companies in the KBW Bank Index ship. Foresite said the offering of Southgate gen- people and nontraditional concertgoers,” rose in 2013, “the first time that’s happened erated “a great deal of interest.” Cuyahoga COMPANY: Benko Products Inc., The Wall Street Journal noted. in a decade,” according to the news service. County land records show America’s Realty, Sheffield Village They “are using social media and adver- The best performer was KeyCorp, which through Southgate Center Associates, paid $14 tising blitzes to promote concerts with rel- gained 59%. The worst performer, Buffalo- million for the property. PRODUCT: Sahara Industrial Drying atively low ticket prices, often incorporating based M&T Bank Corp., advanced 18%. Oven digital media performed by artists who This year figures to be quite different, Strong move: University Hospitals named leave the white tie and tails at home,” ac- Benko Products says the oven is “ideal for though; analysts tracked by Bloomberg pre- Dr. Jeffrey H. Peters, a well-known surgeon and cording to The Journal. applications where temperature uniformity is dict shares of those companies will slip an health care executive, as its next chief operating In places such as Detroit, Indianapolis average of 0.2% in 2014. officer. Dr. Peters comes to University Hospitals needed.” and Cleveland, “budgets were balanced in “It could be difficult for stock prices to from Strong Memorial Hospital and the Univer- The latest iteration of the drying oven was 2013, and many others are back in the black generate similar gains in 2014,” Terry sity of Rochester School of Medicine and Den- designed for a food manufacturer that “need- for the first time since the recession,” the McEvoy, an analyst at Oppenheimer & Co., tistry in New York, where he served as chair of ed a method to dry moisture from small pel- newspaper reported. told Bloomberg. Financial firms are still op- the department of surgery since 2004. Dr. Peters lets on removable trays,” according to Jesse Rosen, president of the League of erating in “a challenging environment to will begin transitioning into his new role this Benko. “Gentle airflow was necessary to American Orchestras, told The Journal that grow revenue.” month and will join the health system full time avoid product displacement, but temperature in 2009 two-thirds of the roughly 800 or- by March 31. uniformity was critical. Internal plenums with chestras the group tracks reported deficits. A heck of a garage properly sized air circulation and properly By 2011, two-thirds reported surpluses. They’re jazzed about this: The Bop Stop placed heating elements provided the perfect And some of the “real bright spots” are ■ The Washington Post compiled a list of jazz club on Detroit Avenue near downtown solution.” coming from the middle of the country, in- “six albums from 2013 that didn’t seem to Cleveland will get a new hop in its step as it be- The company says its ovens are available cluding Cleveland, he said. generate the attention they deserved,” and comes part of The Music Settlement, a Univer- in a range of sizes and heating arrangements The Journal said the Cleveland Orchestra one of them is from a Cleveland performer sity Circle institution that offers music therapy, to meet a variety of drying applications. Tem- has had a big success with its evening “Fri- called Obnox. early childhood education and music instruc- peratures can range from room temperature days at 7” program, which starts early and The album that got The Post’s attention is tion. Music Settlement officials accepted a do- to 500°F. Benko Products says it isn’t re- features hip guest artists such as banjoist called “Corrupt Free Enterprise.” nation of the 4,100-square-foot Bop Stop build- stricted to standard model sizes and can Béla Fleck. College students can make up “If you like rock tunes about sex, Ciara, ing, 2920 Detroit Ave., and everything in it, custom-build ovens to customers’ specifica- about a quarter of the audience at regular Cleveland, sex and/or sex, you’ll want to dig including sound and lighting equipment, and tations. programming. up the recent double-album from Lamont bles and chairs. The donors are Ron Busch and Benko Products was founded in 1983 by “Innovation comes out of budget pres- ‘Bim’ Thomas, a hyper-prolific one-man Anita Nonneman, who built the Bop Stop at the John Benko, inventor of the Sahara Hot Box sure,” said Ana Papakhian, spokeswoman band from Ohio who records as Obnox,” the Detroit Avenue location about 10 years ago. drum warming oven. for the Cleveland Orchestra. “Change is the paper said. “It’s chaotic and ambitious — For information, visit: key to orchestra success in the future, we the sound of garage rock violently refusing www.benkoproducts.com. can’t rely on subscriptions.” to rot in the garage.” 20140113-NEWS--20-NAT-CCI-CL_-- 1/10/2014 2:14 PM Page 1

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