20150302-NEWS--25-NAT-CCI-CL_-- 2/25/2015 1:40 PM Page 1

Vol. 36, No. 9 Entire contents © 2015 by Crain Communications Inc. $2.00/MARCH 2 - 8, 2015

ADVERTISMENT

I’M SO PROUD OF WHAT WE’VE BUILT HERE IN

CLEVELAND, I’M PUTTING MY NAME ON IT. 09 7 NEWSPAPER 74470 83781 0 20150302-NEWS--26-NAT-CCI-CL_-- 2/25/2015 1:41 PM Page 1

AND MY PERSONAL CELL PHONE NUMBER.

 

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Over the last ten years my family and I have established deep roots in the community and you can be sure we will be here for as long as we are in business.

And, if you ever need anything, just give me a call.

I am so proud of how committed every one of our 850 team members are to our vision statement of “creating positive memories”. What can I do for you today? 20150302-NEWS--1-NAT-CCI-CL_-- 2/27/2015 9:56 AM Page 1

$2.00/MARCH 2 - 8, 2015

How Cleveland’s people, places and past created a culinary destination. Pages 15—20 20150302-NEWS--2-NAT-CCI-CL_-- 2/27/2015 10:10 AM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY

52 TIPS FOR YOUR BUSINESS #9: Don’t Just Network, Engage!

“There’s no denying that building a 2. Set Goals for Your- March 2 professional network is critical for successful self. Networking is not just business owners, and networking is a great a race to collect as many way to establish new contacts and engage business cards as possible; with and learn from others,” says Ed Stevens, it’s about opportunity and Chairman and CEO of Stevens Strategic making real connections. By By The Numbers Communications, Inc. “Social media sites like setting goals for yourself, for LinkedIn are helpful networking and promotional example the number of new Do you believe there will be growth tools, but they cannot take the place of face-to- contacts you want to make, opportunities for your business face interactions that allow you to expand your you can better focus your in the coming year? network and cultivate quality relationships.” time and energy on meeting /LYLHYLHML^ Z\YLÄYL Z[YH[LNPLZ [V JVUULJ[ the right people. and engage at your next networking event: 3. Don’t Just Talk, Listen. “You’d be 1. Do Your Homework. When attending a surprised at how much people are willing “I’ve found that you can’t do everything by networking event, preparation is key. Find out to share about issues and challenges in the yourself in business,” says Stevens. “If done who else is going to be there, make a list of ^VYRWSHJL PU VYKLY [V ÄUK ZVS\[PVUZ¹ ZH`Z right, networking is an opportunity to meet people you want to meet, and then do a little :[L]LUZ¸@V\»SSÄUKT\JOTVYLZ\JJLZZPM`V\ knowledgeable people, make connections YES R research so you can talk intelligently to them try to help someone solve a problem, even if and exchange solutions. emember, we are all about their business. If you’re uncomfortable you are just making a referral or pointing them in this together.” 54% approaching someone, ask someone you in the right direction, rather than trying to make i For more tips on engagement through know to introduce you. a sale.” networking, visit www.smallbizmatters.com.

Up 9% from July 2013 Business Pitch Competition Deadline Nears SOURCE: NATIONAL SMALL BUSINESS ASSOCIATION 2014 YEAR-END ECONOMIC REPORT Entrepreneurs with new business ideas VM Q\KNPUN [OH[ J\STPUH[LZ ^P[O[OL ÄUHS MV\Y TIP and owners of recent start-ups have just two WSHUZHK]HUJPUN[V[OLÄUHSZPU4H` weeks left to enter the Business Pitch Compe- Winning the contest can make a real dif- tition presented by COSE. The popular com- ference in the successful launch and growth Deadline for submissions is WL[P[PVU VɈLYZ WHY[PJPWHU[Z of a new business, just ask March 19, 2015. For more information Owner Resources cash prizes totaling $40,000 the 2014 Business Pitch or to submit an entry, log on to as well as invaluable feed- Competition winner Ryan www.cose.org/pitch. Workers’ Comp Deadlines back from small business Schoeneman of Colby &RQWDFW&26(QRZWRıQGRXWKRZWRVDYH experts. Entering the con- Featherbottom’s Custom ment needed to expand and automate our PRUHRQ:RUNHUVŖ&RPSHQVDWLRQSUHPLXPV test is as easy as provid- Sound Machines. “Since guitar production. With greater automation, &DOO  ZLWKTXHVWLRQVRUWRVFKHGXOH ing an executive summary winning the COSE Small Featherbottom Guitars has been able to intro- DPHHWLQJZLWKDZRUNHUVŖFRPSSURIHVVLRQDO (two pages maximum) and Business Pitch Competi- duce a new lower price custom guitar line that a two-minute video pitch. tion, I was able to purchase targets a much wider audience, increasing our Entries go through a series the manufacturing equip- sales twofold.” 2016 WORKERS’ COMP DEADLINE DATES TO REMEMBER

ASK THE EXPERT 5HTXHVWD:RUNHUVŖ&RPS*URXS5DWLQJ4XRWH MARCH – OCTOBER 2015

*URXS5DWLQJ4XRWHV'HOLYHUHGWR%XVLQHVVHV “How can I build capital for my business?” JULY – OCTOBER 2015 L L L L W S L WL SS Whether you are starting a business or have HUK Ɉ J[P] ^H`[VYHPZ JH P[H  Z JPH `MVY 'HDGOLQHWR(QUROOIRUNOVEMBER 18, 2015 ‘‘an existing business that needs additional capi- start-up businesses. These investments are tal to grow, there are a number of ways to go usually structured as loans or as investments in HIV\[ I\PSKPUN JHWP[HS ;OLYLHYL KPɈLYLU[ KL- exchange for a small stake in the company. NYLLZVMILULÄ[ZHUKYPZRZMVYLHJOVW[PVUZV Equity Financing. ,X\P[` ÄUHUJPUN JVU- deciding which option is right for you depends sists of establishing a value for your company on where you are in the business cycle and how and selling equity in the business to investors. much risk you want to take on. Following are This is a popular capital-generation option, Connection Calendar four ways to boost your business capital. especially for high-growth small businesses Y Bootstrapping. The DI method of capital that are attractive to angel investors and oth- SMALL BUSINESS BOOT CAMP #1 investment, bootstrapping is essentially ers looking to diversify their investments. This “MONEY MATTERS” leveraging personal assets to self-fund your can be a win-win situation in that the business Chances are, at some point in your business. This capital injection – or “paid-in owner gets needed capital, and the investor business growth cycle, you will need to draw Featured Speaker: Claude Booker, capital” – requires the owner to make a cash has an opportunity to get a better rate of return VU VUL VY TVYL VM [OLZL ÄUHUJPUN VW[PVUZ 0 Simply Southern Sides investment in, or loan to, the business. The based on your company’s growth. advise all business owners to build a team of WEDNESDAY, MARCH 11 amount of a loan from the owner will typically Debt Financing. +LI[ ÄUHUJPUN PZ H IHUR trustworthy professionals, including a banker, 11:30 AM – 1:30 PM

be required to be on repayment standby in loan used to fund capital investments. There *7(H[[VYUL`HUKÄUHUJPHSHK]PZVY[V^LPNO Crop Bistro the event that you require a bank loan or need are a good number of ways to borrow money at out the options before making‘‘ any plans to Cost: $25 COSE Members, HKKP[PVUHSÄUHUJPUNPU[OLM\[\YL)HURPU]LZ[VYZ attractive rates today. Banks will often partner fund your business growth. $40 Non-Members, Lunch Included always want to know how much of your own with the Small Business Administration (SBA) WESLEY GILLESPIE, Senior Vice President and money you invested in the business, which to make guaranteed loans to small businesses. Regional Manager of Core Business Banking, / shows a level of commitment. There is a common misconception that SBA To register, visit www.cose.org events. FirstMerit Bank The Inner Circle. An alternative means of loans are reserved for start-up businesses, but raising capital is to tap into your network of fam- these loans are abundantly available to new, ex- i Check out some capital-building resources at ily and friends. This funding option is a popular panding and rapidly growing businesses. www.smallbizmatters.com. Check out www.cose.org/events

CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES for all the latest happenings. 20150302-NEWS--3-NAT-CCI-CL_-- 2/27/2015 1:24 PM Page 1

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4 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015

)25/($6( Commercial docket gone, but &/$66$)/(;63$&( some attorneys want it back '$5,&(3$5.:$<67521*69,//(2+,2 2013 following a But even fans of three-year pilot program, estab- special business lished a court dedicated to the court want changes resolution of cor- porate disputes and often com- By JEREMY NOBILE plex business-to- [email protected] Russo Sutula Collier-Williams business cases like liquidations, trade-secret dis- authority to reject a judge from the 6)DYDLODEOH For more information, contact our The commercial docket in Cuya- putes, noncompete contracts and docket, Sutula has told Crain’s he licensed real estate salespersons: hoga County Common Pleas Court  6)RIÀFH shareholder disagreements. also takes exception to the idea that Terry Coyne, SIOR, CCIM remains dissolved, but local attor- The impetus for dissolving the commercial lawyers believe they  6)ZDUHKRXVH 216.453.3001 neys are pushing to see it restored. docket came from the January rejec- “deserve some sort of priority over 'LYLVLEOHWR6) [email protected] Administrative and presiding tion of Judge Cassandra Collier- anybody else’s cases” and exclusive Kristy Hull, CCIM Judge John J. Russo said judges and GRFNVGULYHLQGRRUV Williams from the docket by the judges via the docket, among other 216.453.3055 lawyers, through the Cleveland Met- ·FOHDU Supreme Court’s Commercial Docket issues. [email protected] ropolitan Bar Association, in coming Subcommittee, whose chairman According to the meeting min- weeks expect to meet to review the said Collier-Williams was not quali- utes, “Concerns were also raised Visit 1350 Euclid Avenue, Suite 300 issues that led to the Jan. 21 dissolu- TerryCoyne.com Cleveland, Ohio 44115 fied for the position. about special treatment given to cor- tion and to evaluate the “future of Common Pleas Court Judge John porations and commercial docket the docket” — or rather, if there is Sutula, who called the vote to cases and the impact of campaign one. However, there was no formal disband the docket, contends the contributions to judges presiding discussion among judges about the irony of that is an active judge can’t over commercial dockets.” docket at the bench’s most recent become more experienced in those Asked whether he felt preferential regular meeting, on Feb. 18. cases if they’re precluded from pre- treatment was an issue, Russo said, Bar association president Bruce siding over them by their absence “I don’t believe it’s true.” Hearey said he’s heard no word of from the docket. “Is that a responsible comment (to when that meeting may be, “but I Attn: Manufacturers & Warehouses With the docket disbanded, com- make)? I don’t know the answer,” hope it happens.” mercial cases are once again being Russo said, referencing discussion “I continue to receive inquiries ✔ ✔ assigned randomly to the 34-judge from the January meeting. Reduce Lighting Energy Cost 50% and comments from many lawyers bench — all of whom Russo argues Twenty-three judges ultimately in town expressing their dismay and ✔ ✔ are qualified to hear any case appro- voted for the docket’s dissolution, Dramatically improved plant lighting disappointment about the demise of priate for common pleas court. seven abstained (judges Dick the commercial docket and they all ✔ The Supreme Court subcommittee Ambrose, Brian Corrigan, Michael ✔ Fast Pay back hope it can be restored,” Hearey now confirms appointments to com- Donnelly, David Matia, Robert said. “I’m hopeful we can have a ✔ mercial dockets in Ohio, but that McClelland, John Russo and John ✔ Turn-key lighting project meeting and start a dialog and see if same review process is not required O’Donnell) and four judges didn’t there is a way forward.” ✔ of any other specialty court. Collier- vote because they had left the meet- ✔ It remains to be seen, though, No interruption Williams was intended to replace ing to return to their courtrooms whether those talks could help address retiring Judge Richard McMonagle (judges Michael Astrab, Carolyn what Russo said draws objections in January. Friedman, Timothy McCormick and from most of the court’s judges. The current vetting standards result- Nancy McDonnell). CALL “My bench is very adamant that ing in Collier-Williams’ disqualifica- the way our judges are being vetted tion were adopted by the Supreme Bob Taussig with the new Supreme Court was not ‘Optimism’ for docket’s return Court last October — well after the how we envisioned it,” Russo said. ROI Energy docket was adopted in Cuyahoga Burt W. Griffin, a retired Cuyahoga “And if there is any chance of the County with judges volunteering to County Common Pleas judge who docket continuing, that vetting Today! participate and then being randomly served on the bench between 1975- process would be something we selected, Russo said. 2004, said many factors seem to be at would want to get rid of.” “It’s almost like a merit selection, play, but the decision to disband the 330-931-3905 When the docket was established, which we don’t have in any other docket comes down to the county www.ROI-Energy.com judges would volunteer to sit on the specialty court,” Russo said, refer- court retaining autonomy and sup- Serving NE Ohio docket and then be randomly selected encing the myriad specialty dockets porting a fellow judge. within the county court. However, like those for drug, mental health the Ohio Supreme Court amended “The primary factor was this was and domestic violence cases. “We that process to have a subcommittee an insult to all of them and an insult don’t believe having a merit selec- approve those appointments based to her,” Griffin said, referencing Col- tion of a commercial judge is war- on their qualifications, like experi- lier-Williams’ rejection by the sub- ranted.” ence with corporate cases. committee. “How can you not stand According to minutes from the Corporate lawyers have uniformly up for a fellow judge when someone ✔ judges’ January meeting, judges sus- ✔ applauded the docket for its effec- else says she’s not qualified? I really pended rules allowing a vote to be tiveness in resolving cases more think that’s at the heart of it.” taken on the dissolution of the docket ✔ ✔ quickly. For instance, David Mayo, a Stephen Lazarus, an associate because a discussion on the topic partner at Benesch Friedlander professor of law at Cleveland State was not on the agenda. ✔ ✔ Coplan & Aronoff, has called it the University, said that based on the Judge David Matia, according to “best reform move, the best thing positive reception of the docket and the minutes, said the public expects ✔ ✔ we’ve done in our county” in his 40- its general effectiveness, he specu- a deliberate review process from the year career in Cleveland. lates the docket will be recovered, bench and suggested taking a month ✔ Hearey said attorneys are frustrated although when that might happen ✔ to consider the issues. Judges Robert with how the overwhelmingly popu- or what it might look like if so is McClelland, Janet Burnside and lar docket was abandoned seeming- unclear. Timothy McCormick supported that ly without warning, and a candid Griffin said “I have no question” view. discussion may address those con- that restoring the docket is the “right cerns from the legal community idea.” while potentially laying groundwork Special treatment? But doing so will mean establishing to have the docket restored. a selection procedure satisfactory to But Sutula, who has said he’s the overall court, he said. “always” been against the docket, “I think there’s optimism that Reaching the decision declined to withdraw a motion to ultimately this committee is going to The commercial docket, formally call for a vote. work out something that becomes adopted in Cuyahoga County in Besides the Supreme Court having acceptable,” Griffin said.

Volume 36, Number 9 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Com- year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns munications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. send correspondence to Audience Development Department, Crain’s Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. 9911, or email to [email protected], or call 877- REPRINT INFORMATION: 212-210-0750 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other loca- tions), or fax 313-446-6777. 20150302-NEWS--5-NAT-CCI-CL_-- 2/27/2015 1:29 PM Page 1

MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Going MAD about the marijuana business The drug isn’t yet legal in Ohio, but that hasn’t stopped NE Ohio entrepreneurs from investing in, and profiting from, the industry

By TIMOTHY MAGAW [email protected]

Marijuana might not yet be legal in the state of Ohio, but a few local entrepreneurs are capitalizing on the budding industry. And given the rate at which states are legalizing the drug — both for recreational and medici- nal uses — these local businessmen are set- ting their sights even higher. They aren’t the stoners with whom you rubbed elbows (or were) in college, but rather a group of guys who already made names for themselves in other businesses and are now looking to capitalize on what some analysts characterize as the fastest-growing industry in the United States. Last year, for example, the legal cannabis industry generated $2.7 billion in sales, according to one estimate from ArcView Group, a cannabis industry re- search and investment organization head- quartered in Oakland, Calif. Meet Darrin Farrow. His day job as presi- dent of Pension Builders & Consultants in Rocky River focuses on managing assets for 401(k) plans, pension plans and the like. But about four years ago, he started investing in business opportunities surrounding the cul- tivation and production of medical marijua- na. He’s one of the founders of MAD Farma- ceuticals — yes, “farm” — that supports var- ious aspects of the legal marijuana industry. The company, for one, consults for those looking to launch growing operations. He also boasts software that he says acts much like an air-traffic controller, allowing cultiva- MCKINLEY WILEY By day, Darrin Farrow is president of Pension Builders & Consultants in Rocky River. In his spare time, Farrow helps to manage MAD Farmaceuticals, tors to monitor and analyze their operations. which supports various aspects of the legal marijuana business. Farrow also has stakes in cultivation and pro- duction operations in Colorado, Oregon and na and support for legalization is strengthen- becoming mainstream.” are seeing increased tourism, and entrepre- Nevada. In Oregon, for instance, his facility ing, Farrow said the timing is right to start ag- neurs are itching to get any piece of business supplies marijuana to 120 dispensaries gressively marketing his company. Smelling success they can. throughout the state. “It’s just like post-Prohibition,” Farrow said It’s no surprise that entrepreneurs — even “Any time there’s any kind of change in the And despite little-to-no marketing, Farrow about the rampant growth of the legal mari- in states where marijuana is illegal — are eye- world, it opens up some kind of opportunity said his business is in high demand. He regu- juana industry. “There are a lot of ancillary ing ways to capitalize on the industry, accord- for entrepreneurs,” Shane said. “If you larly receives calls from property owners and opportunities. This is the fastest-growing in- ing to Scott Shane, an economics professor at change any regulation, you’re opening an investors looking to convert real estate into dustry in the world, and by far the fastest in Case Western Reserve University. He said opportunity. To me, that’s what’s great about cultivation facilities. And given that the feds the U.S. There are not many things that have states where pot is legal, particularly for entrepreneurs. They find the pieces and appear to be softening their line on marijua- been illegal for so many years and are now recreational purposes as in Colorado, already See MARIJUANA, page 22 Business assistance groups refocus on urban core Economic development groups haven’t re-energized cities; new programs target minorities, poor BUCKNER WILL LEAD By CHUCK SODER Jump to it The nonprofit traditionally has AKRON EFFORTS [email protected] focused on helping high-tech start- MORE INSIDE So far, JumpStart has made the up companies, but two new pro- JumpStart’s ■ Case Western Reserve University biggest shift. The nonprofit, which Northeast Ohio’s poor inner city grams give JumpStart the ability to effort to unite law professor says not all economic works with entrepreneurs through- neighborhoods are still poor. work with retailers, service busi- Akron’s entre- development groups should be out Northeast Ohio, used to have a After more than a decade of work nesses and other companies that preneurial considered nonprofits. distinct inclusion team. to rebuild the region’s economy, lo- are more likely to be owned by mi- community will ■ Cleveland’s employment numbers Roughly two years ago, however, cal economic development groups norities. be led by a aren’t on par with suburbs. JumpStart started embedding in- haven’t put much of a dent in that For one, JumpStart recently guy who Page 23 clusion into all of its work. As a re- problem, according to officials started a loan fund for small busi- knows a thing sult, every JumpStart employee from two organizations that fund nesses in poor neighborhoods. or two about Buckner now has personal goals related to them: The Cleveland Foundation Plus, JumpStart and Magnet, which helping poor neighborhoods and guide city diversity and inclusion. For in- and the Fund for Our Economic Fu- works with local manufacturers, re- minorities succeed. kids into good jobs. stance, when Amy Martin took over ture. cently started working together on Last week, the nonprofit an- This isn’t completely new territo- JumpStart’s marketing team in mid a pilot project designed to help any nounced that Tobin Buckner will But they’re working on it. ry for economic development 2014, she was surprised to learn small business that appears to have lead its effort to build bonds Statistics suggest that the eco- groups like JumpStart, BioEnter- that her team wouldn’t just be between the many Akron-area nomic gap between Northeast prise, Magnet and Team NEO. weaving diversity-related content a lot of growth potential. organizations that assist Ohio’s suburbs and its core cities They’ve always been tasked with into JumpStart blogs and other The two businesses that Jump- entrepreneurs. Buckner, who has a continued to grow as the nation re- making sure minorities and women marketing materials. She’d also be Start is providing services to graphic design business called covered from the recession. benefit from their work — making required to attend three events that through the so-called “scale-up” pi- Really Good Design Group, used to That problem has pushed sever- sure that their work is “inclusive.” could help her diversify her profes- lot project are owned by black en- lead the Akron Urban League’s al local economic development But for the most part their diver- sional network. Other employees trepreneurs. Partnership for the Minority groups to rethink the way they pro- sity and economic inclusion pro- have different goals. That’s not a coincidence: The Business Accelerator. vide services and who receives grams were “small initiatives with- Thus, JumpStart no longer needs so-called scale-up project emerged That experience was important them. in a big initiative,” according to a dedicated inclusion team, accord- from ongoing conversations to JumpStart, according to its CEO They’ve recently launched sever- Brian Hall, executive director of the ing to Gloria Ware, the only Jump- between civic leaders trying to Ray Leach. al new programs targeting minori- Commission on Economic Inclu- Start employee focused entirely on reshape the region’s economic “He understands inclusion at a ties and inner city neighborhoods sion, a program run by the Greater inclusion. development strategy. Those lead- fundamental level,” Leach said. — programs designed to help mi- Cleveland Partnership. “JumpStart is the team,” Ware ers, who form a group called the nority entrepreneurs, create jobs in In some ways, that is changing. said. See INCLUSION, page 23 20150302-NEWS--6-NAT-CCI-CL_-- 2/27/2015 10:11 AM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015

For Sale - 9,165 SF Offi ce / Warehouse Bldg. Well-Built Facility in a Great Location Businesses are feeling sting of airport cutbacks Fewer direct flights and smaller planes mean less room for cargo, more headaches

JAY MILLER [email protected]

Like many people in Northeast Ohio who rely on the commercial 26500 Renaissance Pkwy., Warrensville Hts., OH airlines, the Cleveland Clinic’s Dr. • 9,165 SF Total Area • (1) 8’ x 10’ Dock David Bosler has had to rethink his • 5,365 SF Offi ce Area • (1) 10’ x 12’ Drive-in Door plans since United Airlines severe- • 3,800 SF Warehouse Area • Remodeled Offi ce Area ly cut the number of direct flights out of Cleveland Hopkins Interna- • Located on 1.03 Acres • Convenient Location near tional Airport • Building is expandable by 6,000 SF restaurants, shopping, and hotels. Only Bosler, a pathologist who • 16’ Clear Height in Warehouse • Access to I-271 & I-480 heads Cleveland Clinic Laborato- ries, isn’t a typical airline user. David R. Stover, SIOR While he’s responsible for an av- 216.839.2012 erage of two itineraries a day, the [email protected] HannaCRE.com travel is not taken by him or the oth- er pathologists on staff. Rather, it’s blood and other highly perishable living tissue that do the traveling. The Clinic labs have a national clientele. They are among only a handful of labs in the country that ROBERT NICKELSBERG/GETTY IMAGES Complimentary have the sophisticated equipment to Tony Parisi, vice president of operations at KLN Logistics Corp. in Middleburg In-flight Wi-Fi do the most advanced blood, DNA Heights, said “everybody is feeling the pinch” from airlines cutting back flights or tumor testing, as well as what’s and merging. called molecular diagnostics, that baggage, U.S. Mail and human re- may be too perishable or too critical- mains have a greater priority than ly needed to wait for overnight par- the part that a company needs to AIR CHARTER SERVICE cel service. Its 100 pathologists have restart an assembly line. So the risk AIRCRAFT MANAGEMENT a menu of 2,400 tests. is greater now that a next flight out Bosler is having to adapt to the shipment will get bumped. cutbacks in what the logistics in- The service also became harder dustry calls next flight out, or NFO, to use as Transportation Security service. NFO service is not only for Agency scrutiny has tightened, es- hospitals. It’s also for the manufac- pecially on larger cargo that might turer who has had to shut down a be in a crate or on a pallet. production line because of a break- “We can still book next flight out down of an oddball or out-of-stock on pieces and parts,” Yankow said. part, or the aircraft owner who has “But there is no real next flight out a plane broken down several states services for anything that is of sub- away from the nearest parts depot. stantial size. That stuff started fad- “Next flight out has been an at- ing out when TSA started changing Northern Ohio’s Premier Air Charter Service tractive option for us to use,” Bosler a lot of requirements.” said. “But we’re using the opportu- Serving the area with a fleet of 9 Jets “We’re using the TSA now requires that some next nity of the decreased flights to look opportunity of the flight out cargo must be at the air- • 25-HOUR JET CARD NOW AVAILABLE • a little proactively at the way we port four hours before a flight is provide logistics to our clients.” decreased flights to look scheduled to leave and may not be www.FlySkyQuest.com • 216-362-9904 Most airlines will take on ship- a little proactively at the available for pickup on the other [email protected] ments — from a small box or enve- way we provide logistics end for two to four hours. lope up to a 200-pound package — to our clients.” “It’s a real cumbersome for next flight out service. process,” Parisi said. KLN Logistics Corp. in Middle- – Dr. David Bosler All of the changes have forced burg Heights has a national cus- Head, Cleveland Clinic Laboratories couriers like KLN and OIA Global tomer base and regularly gets called and operations like the Clinic Labs on for next flight out service from ern USA Operations at OIA Global, to be more creative and to rely customers in places like Chicago, a logistics and packaging firm in more heavily on direct delivery by Memphis and Miami. Middleburg Heights, said the cost truck or van. The Clinic now often “This is the way the process of the service typically is $400 to uses ground services for shipments works,” said Tony Parisi, the com- $500 — about the same as a passen- within a 350-mile radius, and Parisi pany vice president of operations. ger traveling economy class. said KLN has driven shipments as “A customer calls up and says, ‘I The loss of direct United flights much as 1,500 miles to overcome need this little circuit board to be at to and from more than 30 cities at the increasing problems with NFO. Disney in Anaheim because the Hopkins is not the only problem for Next flight out has also lost to the roller coaster isn’t running.’ We shippers and their clients. Other express package shippers, who book the airfare, have our agent changes have made the service have encroached on NFO with sim- pick the part up in Memphis at the harder and less reliable to use. ilar services. (distribution center), have a driver “Everybody is feeling the pinch “The guaranteed services that waiting for the package to arrive (in because (the airlines) are cutting you have from FedEx and UPS, that Los Angeles) and deliver it. back flights and merging,” Parisi can have it in the hospital by 8 a.m. “It’s like buying an airplane tick- said. “But another problem is the next day, versus all of the steps et with somebody driving you to the everybody is running these little that have to fall in order when you airport” and someone picking you commuter jets.” do next flight out, you often have an up on the other end,” Parisi said. Smaller planes mean less room advantage with the courier ser- William Yankow, director of East- for cargo, Parisi said, and passenger vices,” Yankow said.

CORRECTIONS ■ Chai Yuet Yee’s name was mis- ■ Women are getting close to 50% of from Shannon B. Lundeen, director spelled in a story that appeared on science and engineering degrees in of the Case Western Reserve Univer- Page 21 in the Feb. 23 issue. Yee is a undergrad, yet they represent only sity Flora Stone Mather Center for project engineer at Aviation Compo- 24% of the STEM workforce, accord- Women. The information appeared nent Solutions in Richmond Heights. ing to a clarification of information on Page 20 of the Feb. 23 issue. 20150302-NEWS--7-NAT-CCI-CL_-- 2/27/2015 9:57 AM Page 1

MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 Cleveland State tackling cost of attendance measure The Vikings don’t have a football program to fund, but paying athletes a stipend in 2015-16 involves a few complicated scenarios

By KEVIN KLEPS to ask, ‘Does my scholarship in- “We got back so much detail it is [email protected] clude cost of attendance?’ ” said CSU’S ATHLETIC BUDGET: BY THE NUMBERS hard to absorb without an inter- Cleveland State director of athletics preter,” he said. Horizon League commissioner John Parry. A look at some notable statistics Largest expenses Jon LeCrone sees the cost of atten- That’s a complicated question from Cleveland State’s 2014-15 ■ The Vikings are spending MAC’s moves affect CSU dance measure as an opportunity for Cleveland State, and one for athletic department budget: $1,888,433 on athletic internal for the nine-member conference. which Parry doesn’t always have an Each of the MAC’s 12 institutions ■ Total budget: $11,568,508 operations — salaries and benefits The legislation — a stipend for answer. for department staff (non-coaches), will enact cost of attendance for the ■ student-athletes that is estimated Revenue: $1,103,500 along with operating expenses. 2015-16 school year, but its mem- to be worth $2,000 to $4,000 annu- ■ bers will do so on an individual ba- More uncertainties than answers Funding from student activity ■ The men’s basketball program has ally — was passed by the Power 5 fees: $10,465,008 a budget of $1,847,197 — sis, Kent State director of athletics conferences in January. Other Only two Horizon League ■ Percentage of athletic budget $686,521 in salaries, $237,883 in Joel Nielsen told Crain’s for a story NCAA Division I conferences, such schools have football programs — that is paid for by student fees: benefits and $922,793 in operating that was published Feb. 9. as the Cleveland-based Mid-Amer- Youngstown State and Valparaiso 90.5 expenses. How the MAC schools honor the ican Conference and the Indi- — which LeCrone said puts the COA — whether they award it to anapolis-based Horizon League conference at an advantage when it every athlete or hand it out to only (which includes Cleveland State), comes to the cost of attendance. an athletic department with only budget, which equates to 125 full those on a full scholarship and/or had been preparing for the Power “We don’t think we have quite $1,103,500 in revenues. scholarships and a cost of atten- strictly those in high-profile sports 5’s vote for months. It’s a topic the cost dynamic that might occur Parry said Cleveland State is an- dance of $357,250. How that mon- — affects Cleveland State much many collegiate athletic directors in the Mid-American Conference, alyzing its cost of attendance op- ey would be divided brings up more than its Horizon League com- have been tackling more intensely and certainly not in leagues like the tions from three different perspec- more questions than Parry has an- petitors. than some high-profile coaching ACC or SEC,” said LeCrone, the tives. swers. The Vikings compete with the searches. Horizon’s commissioner since ■ The first is providing the full “If someone is on a partial schol- MAC for recruits, and they fill up Unlike the Atlantic Coast, Big 1992. “It won’t be as stressful on COA, which for the Vikings would arship, let’s say 50%, you can give their nonconference schedules Ten, Big 12, Pac-12 and Southeast- our league.” be $2,858, to the 28 men’s and them the 50% cost of attendance with the likes of Kent, Akron, Bowl- ern Conferences, the MAC, Horizon Cleveland State’s $11,568,508 women’s basketball players who difference,” Parry said. “But why ing Green, Miami, Ohio and Tole- and other midmajor leagues don’t athletic budget for 2014-15 is less are on full scholarships. That would would you just hand them the cash do. have to do anything about the cost than half that of the typical MAC cost CSU an extra $80,000 in 2015- instead of taking it from their cost “We’re not recruiting very hard of attendance (COA) for the 2015- athletic department. The COA, de- 16. of tuition?” against Ohio State,” Parry said. “My 16 school year. But most of them pending on how the Vikings decide ■ Option 2 is every athlete at Cleve- The Cleveland State AD told concern isn’t competing against will — if for no other reason than to divvy up the funds, could cost land State who has a full scholar- Crain’s earlier this month he was the Power 5 (for recruits). Now if providing more than just the cost of CSU between $80,000 and $357,000 ship — 50 in all — each would get awaiting word from the NCAA on they make a mistake and a kid falls tuition, room, board and books is in 2015-16. the stipend, for a total expense of some COA interpretations that through the cracks, we’ll take him. another recruiting tool schools That’s not nearly as daunting as almost $143,000. were going to be delivered to mem- My concern is what does the MAC have at their disposal. the $1 million-plus hit Kent State ■ The third possibility is the most ber institutions. In a follow-up do?” “As everyone gets more ad- could face in its next athletic bud- complicated, and costly. Cleveland email on Feb. 23, Parry said the in- The Cleveland State AD said, vanced on this topic, they’re going get, but it’s a significant expense for State has a $3.2 million scholarship formation had arrived. See CLEVELAND STATE, page 13

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8 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015 Fogg is building on its Euclid ties with $6M project

By STAN BULLARD new project is that its first 102,000- [email protected] square-foot building, which opened in late 2013, is fully leased. Activity A year after finishing its first of- was such that Fogg said there are fice/warehouse building at Blue- several prospective tenants the firm stone Business Center in Euclid, had identified for the prior building Ray Fogg Corporate Properties LLC that it hopes to win for the next one. already is taking steps for an encore. “We know the market is craving CONTRIBUTED PHOTO Ray Fogg Jr., president of Ray this product type,” Fogg said. A rendering of the 127,000-square-foot building Ray Fogg Corporate Properties LLC plans to construct in Euclid. Fogg Corporate Properties, said the Another reflection of Fogg’s con- Brooklyn Heights-based real estate fidence in the market is that the new cation,” Cervenik said. city of Euclid also provides proper- building in the southeast suburbs, developer and industrial construc- building is 25,000 square feet larger The firm is capitalizing on invest- ty tax abatement for companies that but Euclid is a different market,” tion contractor plans to add a build- than its predecessor. Plans for the ments it made when the real estate are new to the city. Calig said. ing with 127,000 square feet of structure were approved Feb. 3 by market was in the midst of a reces- Fogg recently announced plans More than 400,000 square feet of space at Bluestone as soon as possi- the Euclid Architecture Review sion, for it bought the 80-acre site in for a 100,000-square-foot industrial office/warehouse space in three ble this spring. Board. 2009 and demolished the World War building at a new business park on buildings for the rental market are Plans call for the structure with Euclid Mayor Bill Cervenik said II-vintage Chase Brass Co., later PMX Seasons Road in Stow. He said he planned or under construction in 32-foot-tall ceilings to be ready for plans for a second building at Blue- Industries Inc., plant across the originally felt the tenants might southeast suburbs such as Glenwil- tenants by summer’s end. The ven- stone, which stands on a site for- street from Euclid Square. Readying come from throughout the region to low, Solon and Twinsburg. ture is a more than $6 million con- merly occupied by a copper and the site for a new start incorporated Euclid. Fogg also faces less competition struction project. The industrial brass foundry, are exciting. a $3.5 million grant from the Ohio However, following the long in the northeast suburbs, where it th park is south of the East 260 Street “Fogg has demonstrated its abili- Job Ready Sites program and a $1 drought in construction of new in- will be going it alone, Calig said. For interchange with I-90. ty to quickly construct an afford- million brownfield redevelopment dustrial space in the region, he said the market as a whole, industrial va- One reason Fogg is pursuing a able, high-quality product at this lo- loan from Cuyahoga County. The he has since found that its tenants cancy at the end of 2014 was 6.9% and prospects primarily come from compared with 7.6% a year earlier, Euclid and surrounding areas. according to NAI Daus market re- “I really don’t think we’ll com- search. pete with ourselves,” Fogg said. David Browning, managing di- Jeff Calig, senior vice president of rector of CBRE Group Inc’s Cleve- Beachwood-based NAI Daus, said land office, isn’t worried about the CHANGE YOUR SPACE he agrees with Fogg that the build- volume of projects being readied for ing’s appeal will be strongest in the the industrial market, one of the northeast suburbs of Cleveland. He healthiest segments of the commer- also believes that will make the cial realty market. building a better investment than if “We have continued to see a sup- it were located farther south. ply constraint in the market,” “I would be concerned about an- Browning said. “There is a shortage other speculative rental industrial of quality product to lease or sell.”

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Nowacki Asset Growth of $1 S&P 500 Total Growth of $1 Period Management (NET) Million Return Million May 2011 - Year End -7.46% $925,400 -6.37% $936,300 2012 29.99% $1,202,927 16.00% $1,086,108 2013 51.76% $1,825,563 32.39% $1,437,898 10/31/2014 21.59% $2,219,459 10.99% $1,595,988

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MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

GOING PLACES Send information for Going Places to [email protected] Sutton to senior vice president, JOB CHANGES strategy and performance management. EDUCATION KENT STATE UNIVERSITY INSURANCE TRUMBULL: Lance Grahn to dean HYLANT: Ann Stark to client and chief administrative officer. service executive, benefits. METLIFE PREMIER CLIENT Grahn Garman Johannisson Mellish ENGINEERING GROUP OF OHIO: MJ Morello Baumgardner Sutton R.E. WARNER & ASSOCIATES to financial services representative. INC.: Matthew S. Barratt to Teresi to clinical services manager. Uchbar to accounting manager. Steve Polly to vice chairs; Mike director of operations. LEGAL NORTH COAST COMMUNITY Trifiletti to treasurer; Anne Kuenzel KURT LAW OFFICE LLC: Philip G. HOMES: Karen Williams to TECHNOLOGY to secretary. FINANCE King to attorney. volunteer manager. SPEEDEON DATA: Jill Iott to vice YOUTH OPPORTUNITIES UNLIMIT- FIRST NATIONAL BANK OF MORRIS, LAING, EVANS, BROCK & president, marketing; Lindsey ED: Beth Rosenberg (LogicJunc- PENNSYLVANIA: John Turcanik KENNEDY: Benjamin D. Carnahan REAL ESTATE Kaiser to director, client strategy. tion) to chairman; Pat Hofford and to vice president, regional builder and Hunter G. Cavell to attorneys. BASS OHIO REAL ESTATE: James James Hardiman to vice chairs. sales manager. ULMER & BERNE LLP: Nicholas B. Chillemi to sales associate. BOARDS Wille to associate. FINANCIAL SERVICE AWARDS SERVICE ARC OF GREATER CLEVELAND: CIUNI & PANICHI INC.: Herzl MANUFACTURING COUNTY FIRE PROTECTION: Justin Jamie Debenham (Brooker Insur- HILLCREST HOSPITAL COMMUNITY Ginsburg to manager; Eden BENDIX COMMERCIAL VEHICLE Knowles to service manager; Dave ance Agency) to president; Carl V. ADVISORY COUNCIL: Lauren B. Kovacik to staff accountant. SYSTEMS LLC: John Kemer to Coffman to chief financial officer; John Tyler Jr., M.D., to vice president; Rock (Montefiore) received the 2014 GRANT THORNTON LLP: Chris vice president and general manager, Frank to account manager. Janice Paul-Canfield to treasurer; Hillcrest Hospital Community Service Garman, Jennifer Johannisson valves and modules; Scott Burkhart Natalie J. Belle to secretary; Award. and Chris Mellish to managers. to vice president, sales, marketing STAFFING James DeFeo to at large member. KENT STATE UNIVERSITY: PEAK WEALTH SOLUTIONS: Kara and business development. INTEGRITY STAFFING SERVICES: NAACP PORTAGE COUNTY: Virginia C. Albanese (FedEx Custom Baumgardner to operations manager. Geraldine Hayes-Nelson (Kent Critical) received the 2015 Spirit NONPROFIT Keith Dasbach to business develop- WESTERN RESERVE PARTNERS: ment manager; Deena Mitchell State University) to president. of Women in Business Award. Charles P. Trouba to analyst. ANSHE CHESED FAIRMOUNT to marketing assistant; Mike Stark ROCKY RIVER CHAMBER OF PMI NORTHEAST OHIO CHAPTER: TEMPLE: Jane Mayers to director, to chief financial officer; Carl Valla COMMERCE: Marc Hustek Christy Laird (Progressive HEALTH CARE Early Childhood Center. to vice president, sales; Jessica (Howard Hanna) to chair; Jason Insurance) received the Project SUMMA HEALTH SYSTEM: Ben CLEVELAND EYE BANK: Gary A. Morris to marketing manager; Lisa Lukz, Rusty Deane, Jim Riedl and Management Excellence Award.

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10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Clean it up The war continues between the U.S. Army Corps of Engineers and the Ohio Environmental Protection Agency over the dredging of the Cuyahoga River. And it needs to end. As Jay Miller explained in last week’s Crain’s, the latest battle is over who will pay for the disposal of roughly 200,000 cubic yards of sediment the Corps plans to dredge from the bottom of the Cuyahoga River to keep it safe for navigation. FROM THE PUBLISHER The Corps recently retreated from its plan to dump this year’s sediment into Lake Erie after facing strong opposition from the Ohio EPA and others concerned Browns are sore spot for Cleveland that it would foul drinking water, harm fish and set back decades-long efforts to clean up the lake. The The second phase of the “moderniza- Cleveland is starting to change. And, a private jet with a coach aboard! Our Corps still maintains that the sediment from the river tion project” at FirstEnergy Stadium is more important, the attitude here, quarterback of the future is in rehab, the is now environmentally clean enough to resume underway. When the Browns kick off in among the natives, is transforming too. league is investigating our GM and our the fall, fans will see new In the sun of Cleveland’s brightest young assistant coach, Kyle direct disposal into the lake, which the Ohio EPA and graphics around the stadium spring, negativity is melting. Shanahan, fled the franchise in what has other government agencies and environmental and upgrades to the conces- But there’s a tire boot on been framed by many as an “escape.” groups hotly contest. sion stands and premium this bandwagon, and it’s or- But most troubling are the reports of We’re fairly certain that the same battle will be seating areas. ange and brown. chronic dysfunction in Berea: a med- A second round of renova- The Browns aren’t just frus- dling front office, a toxic environment waged again next year. For now, though, the issue is tions and tech upgrades can- trating us every fall, they have and free-falling morale. who will cover the cost to keep the sludge out of the not change the fact that no started to embarrass us na- Decades ago, our football team was a lake by disposing of it in storage sites called confined matter how shiny the stadium tionally. salve for Cleveland jokes. Today, our disposal facilities, or CDFs. That cost could soar into on the lakefront looks, it may The idea of a sports team football team is a Cleveland joke. as well be a boarded-up build- hurting a city’s image might While the national conversation about the millions of dollars. ing, with its copper stripped, JOHN seem crazy. (Do you think less Cleveland is improving, the national And that’s where the finger pointing begins. roof leaking and walls covered CAMPANELLI of Nashville because the Ti- conversation about the Browns is deteri- The Corps, which is required to use the cheapest in graffiti. tans went 2-14? Of course orating. Put on your waders and slog method to dispose of dredged sediment, contends I attended my first Browns not.) But there are extremes, through the comments on national that “a non-federal entity” must cover the cost game at age 7, bought season tickets and we are extremely extreme. sports sites like Deadspin and you’ll see while in high school and, like so many With very few exceptions, we have en- the two — city and team — are often difference between dumping the silt into the lake people in Northeast Ohio, set the week’s dured a 16-year fiasco. Instability has lumped together, river fire and dumpster and storing it in a CDF, which is much more mood depending on what happened been the only constant — eight different fire. That’s dangerous. expensive. Sunday. So it pains me to type this next head coaches, 14 offensive coordinators, Cleveland is back on its feet, and our The Ohio EPA argues that until the Corps, the sentence. 22 starting quarterbacks, scores of draft renaissance is taking baby steps. It’s The Browns are becoming a blight on busts and an NFL-worst record of 84-172 happened because of collaboration, federal EPA and state EPA all agree that the muck is Cleveland. since 1999. commitment and execution, largely clean enough to dump into the lake, the feds should Northeast Ohio is enjoying a historic Now, instead of an annual ritual of from the business community. To begin pick up the tab for disposing of it in the storage sites. rebirth, especially downtown. The laun- hope, this offseason has delivered a to run, we’re going to need to fix more of And the Ohio EPA is right. dry list of amazing things — conven- sobering realization: The worst may be our problems, change more hearts and tions, homecomings, restaurants, devel- yet to come. minds, put on a perfect 2016 RNC Con- It’s indefensible that the Corps is ignoring the EPA opment, positive media attention, the Since the car-off-a-cliff end to the reg- vention and clean up our blight, literal on this matter. Imagine a corporation trying to pull a influx into downtown — seems to grow ular season on the field, we’ve seen our and figurative. move like that. every week. best receiver fail a drug/alcohol test and The message to the Browns is simple: The problem here is that there is no arbiter The national conversation about get suspended (again) after drinking on You’ve been cited. Fix things up. between two bodies that have different interpretations of the law. That needs to be fixed long term. In the short term, we hope these agencies and the stakeholders affected by their squabble are LETTERS TO THE EDITOR able to negotiate intelligently and quickly to balance Greeting can go long way city. Canada is crucial the need to keep the river deep enough for freighters Currently the airport employs some With the Republican National Con- Thanks for raising awareness about that feed commerce and the need to keep the lake individuals who seem to have limited vention being hosted and other exciting knowledge of all of the cultural and en- the trade relations between Ohio and clean of pollution. projects and activities happening in tertainment options available for visi- Canada in the Feb. 16 editorial in Crain’s. It’s not an option to simply avoid or even delay Cleveland, there is an area of opportuni- tors. Please keep in mind that these visi- Having graduated from St. Lawrence dredging. If compromise proves impossible, perhaps ty that I would like to express my ideas tors may one day become residents. University in Canton, N.Y., with a com- for remediation. bined degree in economics and Canadi- the Ohio EPA, which is acting in defense of the lake, I suggest hiring a staff of qualified, As a community, we need to do a bet- greeter/concierge personnel to provide an studies, I’ve been well aware of the should follow through by paying for the safe ter job of portraying the first impression an inspirational and informative wel- strong relationship, but others should sediment disposal and then pursuing of a city that is vibrant, exciting, growing come to Cleveland to visitors. be, too. While at SLU, I learned a great reimbursement in court. and a place that can attract and retain There may be the opportunity to deal about the Canadian-American rela- talented individuals. A location where tions and was able to meet with Canadi- The river and the lake are both vital to Northeast leverage some funds from the new Posi- this initiative may begin is with our air- tively Cleveland campaign, the county an members of Parliament in Ottawa, Ohio’s economy. port. The recent departure of United as a and funds from the allotted airport ren- Ont., to hear their perspective. The Corps and the EPA both know it. hub may leave a strong negative impact, ovations. Indeed, Ohio’s and the United States’ It would be nice if they’d act like it. but visitors who still come to our city and I strongly believe that it would be a largest trading partner is Canada, and it arrive via the airport should have a pos- wise investment to consider. shouldn’t be taken for granted. itive and lasting first impression of our Andrew Brickman, Cleveland Andy Sikorovsky, Cleveland 20150302-NEWS--11-NAT-CCI-CL_-- 2/26/2015 2:50 PM Page 1

MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 TALK ON THE WEB Re: Browns’ subtle logo changes Blah, blah, blah. My 3-year-old We are proud to sponsor grandson has more creativity. The only people who are living in the Wine by the Falls past more than the Browns are my parents — and they’re dead. — Jerry Pae Saturday April 18 Much ado about nothing. 7 to 11 PM — Phillip Rose Chagrin Valley Country Club Did something change? Hopeful- ly the on-field play will be more no- table. — Brendan Anderson

Wow, that is awesome!!!! Love Proceeds from the evening will support what they did with the helmet. many local shops and work to preserve Can’t wait to see the rest. The subtle changes to the Cleveland Browns’ primary logo (left) weren’t as the historic Village of Chagrin Falls. — Stephen Niksa exciting as some fans had anticipated. The team’s Dawg Pound logo also got a new look. Re: Nela Park through vocations/trades training is lower the years Re: Gabriel Partners prestige and income than a 4-year grows in Cleveland Too bad they’ve been laying off university degree people like crazy and moving the However, skilled manufacturing It’s typical for our local econom- For tickets, visit elkandelk.com/WinebytheFallstheFalls jobs to China. technologists, especially those that ic development organizations to — Zoltan have passed an apprenticeship, are look outside of Cleveland to entice extremely well trained, work in companies to locate here. In that Re: Beachwood Place their area of training and earn an process, no one ever examines what income at least comparable to uni- is being grown organically as the owner buys La Place versity graduates. best opportunity for our transfor- I would no longer use the word — Sandy Montalbano mation. “tony” to describe Beachwood — Ronald Copfer Place Mall. Re: Development along — Michael Poklar Opportunity Corridor Re: Impact of Gay Games 9 includes $147,000 Re: Women in STEM Opportunity Corridor is one of profit education and fields the most important “opportunities” to come along in many years, 20,000 people, 7 days of It is great to see a STEM aware- though it did take over a decade to events...with hotels, food, clubs, ness program for girls. Woman with get to this point. travel, publicity, easy impact of $52 STEM skills are needed in manufac- Now we have a real chance to do million in economic activity.. Con- turing. it right. grats Cleveland. Take that, homo- Availability of a sufficient quality Doing it right means having real phobes! — Damien Covey and quantity of skilled workers is leadership. often the number one site selection Many other great CDCs and oth- Damien, you had me until your criterion and is a key issue for re- er entities mentioned in Crain’s last sentence. Otherwise, yes, posi- tention and expansion. The bottle- Feb. 23 article have that leadership, tive impact on the Cleveland econ- neck to expanding the skilled work- which is why they succeeded. Why omy. Keep ‘em rolling in. force needed in manufacturing is don’t we look at creating Opportu- — William Lane recruitment; too few students want nity Development Corridor Corp. to to follow STEM fields, especially serve as the single point of respon- Great event. Zero chance the $52 manufacturing, mainly due to three sibility to bring all the others to the million economic impact figure is key issues in recruitment: table? correct, but great event. 1. Perception that training is not Now that is something I would — 171462 as important as degrees really love to be part of. It is some- 2. Perception of ongoing manu- thing that could create and grow Such a positive event for the city. facturing decline due to offshoring real opportunity. Very, very cool. 3. Perception that — Neil Dick — Angie Schmitt

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12 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015 TAX LIENS

The Internal Revenue Service filed tax Pistol Truck Service Inc. Type: Employer’s withholding Strongsville Date released: Dec. 30, 2014 liens against the following businesses 5281 Engle Road, Brookpark Amount: $6,304 ID: 30-0291421 Type: Employer’s withholding, in the Cuyahoga County Recorder’s ID: 46-0828749 Date filed: March 7, 2013 corporate income Long Painting Co. Office. The IRS files a tax lien to Date filed: Jan. 6, 2015 Date released: Dec. 3, 2014 Amount: $55,614 protect the interests of the federal Type: Employer’s withholding, 5209 Prospect Ave., Cleveland Type: Employer’s withholding, government. The lien is a public notice unemployment 44103 corporate income United Stones International Inc. to creditors that the government has Amount: $34,715 ID: 34-0364410 Amount: $9.688 5905 Harper Road, Suite C., a claim against a company’s property. Date filed: March 29, 2005 Solon Liens reported here are $5,000 and Pro Arch Inc. Date released: Dec. 8, 2014 Ran-Dan Transport Inc. ID: 26-4660923 higher. Dates listed are the dates the 1337 W. 10 St., Cleveland Type: Employer’s withholding, 2506 Grovewood Ave., Parma Date filed: May 21, 2014 documents were filed in the ID: 26-0203040 unemployment ID: 92-0184993 Date released: Dec. 30, 2014 Recorder’s Office. Date filed: Jan. 2, 2015 Amount: $153,708 Date filed: April 5, 2011 Type: Employer’s withholding Type: Employer’s withholding, Date released: Dec. 3, 2014 Amount: $16,517 unemployment M & B Electric Inc. Type: Employer’s withholding LIENS FILED Amount: $20,861 5386 Majestic Parkway, Suite 9, Amount: $111,863 Upwright Industries LLC Bedford Heights 44146 24300 Solon Road, Suite E., Stratum Energy Systems LLC ID: 34-1922570 Reserve Home Health Care Inc. Bedford Heights Metro Cleveland Security Inc. 1791 E. 40 St., Cleveland Date filed: July 1, 2005 26612 Center Ridge Road, ID: 27-1386599 5627 Memphis Ave., Cleveland ID: 20-1173906 Date released: Dec. 8, 2014 Westlake Date filed: Dec. 2, 2014 ID: 34-1322803 Date filed: Jan. 2, 2015 Type: Employer’s withholding, ID: 34-1753058 Date released: Dec. 30, 2014 Date filed: Jan. 6, 2015 Type: Employer’s withholding, unemployment Date filed: May 4, 2010 Type: Employer’s withholding Type: Employer’s withholding unemployment, partnership income Amount: $130,343 Date released: Dec. 30, 2014 Amount: $11,648 Amount: $1,187,289 Amount: $14,209 Type: Employer’s withholding Menber Corp. Pizza Pan Watson Construction Inc. Cosmos Industrial Services Inc. Amount: $15,862 Jerusalem Grill LLC 15240 Trails Landing, Strongsville 18574 Cranwood Parkway, 9103 Detroit Ave., Cleveland 14421 Cedar Road, South Euclid ID: 20-3870400 Security Management Cleveland ID: 34-1634076 ID: 20-8857589 Date filed: Sept. 23, 2010 Group Inc. ID: 34-1646658 Date filed: Jan. 6, 2015 Date filed: Jan. 6, 2015 Date released: Dec. 2, 2014 3740 Euclid Ave., Cleveland Date filed: May 6, 2014 Type: Employer’s withholding Type: Unemployment Type: Employer’s withholding ID: 26-3798129 Date released: Dec. 30, 2014 Amount: $553,357 Amount: $12,779 Amount: $8,500 Date filed: July 18, 2014 Type: Employer’s withholding, 704 Holding Inc. E. 185 Marathon Date released: Dec. 2, 2014 failure to file complete return Metro Paving LLC 6401 Barberton Ave., Cleveland Type: Employer’s withholding, Amount: $11,570 ID: 34-1955142 LIENS RELEASED 4873 Osborn Road, Garfield Heights unemployment William E. Crowe, M.D., Inc. Date filed: Jan. 2, 2015 ID: 80-0291494 Amount: $22,435 6681 Ridge Road, Suite 2014, Type: Corporate income Date filed: Aug. 19, 2014 Jsse Inc. Anago of Columbus Treasure in Heaven Parma Amount: $2,925,851 Date released: Dec. 30, 2014 7055 Engle Road, Suite 6, Type: Employer’s withholding Ministries Thrift Nation ID: 30-0019966 Michale & Sons Landscaping Inc. Middleburg Heights Amount: $11,048 6286 Pearl Road, Date filed: Oct. 19, 2012 P.O. Box 40442, Bay Village ID: 56-2359423 Parma Heights Date released: Dec. 3, 2014 ID: 34-1507239 Date filed: Aug. 19, 2014 Metropolitan Medical ID: 27-1837702 Type: Employer’s withholding Date filed: Jan. 6, 2015 Date released: Jan. 6, 2015 Associates Inc. Date filed: Feb, 27, 2013 Amount: $17,429 Type: Employer’s withholding, Type: Failure to file complete 1464 E. 105 St., Date released: Dec. 30, 2014 William E. Crowe, M.D., Inc. failure to file complete return return Cleveland Type: Employer’s withholding 6681 Ridge Road, Suite 2014, Amount: $126,698 Amount: $12,702 ID: 34-1891139 Amount: $14,891 Date filed: Nov. 28, 2005 Parma AKM Childcare Centers Inc. Veterans of Foreign Wars Date released: Dec. 2, 2014 United Stones ID: 30-0019966 7957 Euclid Ave., Cleveland of the United States Type: Employer’s withholding International Inc. Date filed: Aug. 19, 2013 ID: 11-3732794 4435 W. 131 St., Cleveland Amount: $18,116 5905 Harper Road, Suite C., Date released: Dec. 30, 2014 Date filed: Jan. 6, 2015 ID: 34-0190755 Solon Type: Employer’s withholding, Type: Employer’s withholding Date filed: Aug. 14, 2008 P L A N Enterprises Inc. ID: 26-4660923 corporate income, unemployment Amount: $70,515 Date released: Jan. 2, 2015 20898 Drake Road, Date filed: April 12, 2013 Amount: $12,446

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MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 13 CLEVELAND STATE

continued from page 7 pilation of USA Today data. from the Vikings’ perspective, there Student fees account for 90.5% of are two things that can happen be- the Vikings’ athletic budget, and cause of the cost of attendance. CSU’s $1.1 million in revenue is $4.6 “The MAC can decide to offset million and $5.3 million below the football and put a lot more money budgeted totals for Kent State and in women’s athletics,” Parry said. Akron, respectively. While the MAC “That would make it hard for us to schools benefit from the confer- compete (for recruits in the ence’s 13-year, $100 million media women’s sports).” rights deal with ESPN, the Horizon The other possible outcome — League spends more on media pro- one that was discussed by Todd duction than it brings in. Turner, a former Division I AD who Men’s basketball, CSU’s signa- is doing an assessment of Kent ture program, is its largest source of State’s athletic programs, in Crain’s athletic revenue at $400,000. Cleve- Feb. 9 story on the COA — is the land State receives $250,000 from MAC and other midmajor confer- what its budget refers to as “athlet- ences could cut programs in the ics media,” which Parry said is the men’s Olympic sports (those not combination of funds the Vikings protected by Title IX) to offset the generate from their local television extra costs that are being incurred. and radio deals, and sponsorship CONTRIBUTED PHOTO “If they drop sports,” Parry said, income. Men’s basketball is Cleveland State’s “most visible sport” and the largest revenue producer for the athletic department. “we have less schools to play in the LeCrone said the Horizon The Vikings play at the $55 million Wolstein Center. men’s sports. Kent, Akron, Toledo, League “invests heavily” in the pro- Bowling Green — that’s an easy dri- duction and distribution of live timistic about the COA than some Parry agrees, but the Cleveland missioner said, is an approach ve for us and logical competition. sporting events on its website. of his peers. State AD said that until the Horizon that’s “somewhere in the middle” “All of a sudden,” he added, “I Without football, the school isn’t “I actually think it gives a league League decides how it’s going to — one that has set rules for certain can’t compete with them on the able to sign multimillion-dollar like ours somewhat of an opportu- proceed with the COA in 2015-16, sports (likely basketball) and allows women’s side, or they’re not there rights deals with the likes of ESPN, nity,” he said. “It’s not that it’s with- there is a lot of uncertainty. for schools to make their own COA (for Cleveland State to play) on the CBS and Fox Sports. out cost. In our case, since we don’t LeCrone said the league’s board of determinations for others. men’s side.” “We have TV revenue. Everybody have football programs, with the directors, which is comprised of the “There are a lot of moving parts,” has TV revenue,” the Horizon com- exception of Valparaiso and nine university presidents, will vote CSU’s Parry said. “We want to be missioner said. “The question is is it Youngstown, it’s a manageable ex- on the COA in the coming weeks. competitive in everything, but our ‘A lot of moving parts’ self-supported? We will spend more pense.” The most likely outcome, the com- most visible sport is basketball.” Cleveland State doesn’t have a money on the production and dis- football program to support, but its tribution of all of our products to- athletic department is even more gether than we receive in rights dependent on school funding than fees.” the MAC, whose 12 members relied LeCrone, who was the assistant on student fees and other universi- commissioner of the ACC for nine ty money to pay for 70% of its 2013 years before he became the leader budgets, according to Crain’s com- of the Horizon League, is more op- A Business YOU CAN WATCH US, TOO Look for Crain’s Weekly Report webcast, which will hit your inbox on Friday afternoon. To sign up, go to: crainscleveland.com/register. Banking Solution that works for you. SALT • SALT • SALT • Water Softener • Industrial • Food Business Solutions Checking with Interest • Ice Melt • Sea Salt )HDWXUHVDQGEHQHÀWVRIRXU Business Solutions Checking Call For Pricing!! with Interest account: Minimum Delivery: 1Pallet • 250 free items (checks and deposited items) per month1 • Free Executive 50 check package or 30% credit towards any other check package2 • Online banking and bill pay • Free ATM/Visa® check card • Telephone Banking • Detailed statements – go paperless with e-Statements

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14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015 Ramco runs out of room in Hudson Effective tax rate is As a result, manufacturing company will build a new 165,000-square-foot facility By RACHEL ABBEY McCAFFERTY burden for drillers [email protected] By DAN SHINGLER pressed as the West Texas Interme- Ramco Specialties Inc. has been [email protected] diary price, is about $51 per barrel, doing more of its own manufactur- the crude being brought up in Ohio ing in recent years, rather than sim- Ohio Gov. John Kasich’s pro- can sell for anywhere from $26 to ply processing parts from overseas. posed severance tax rate on oil and $44 per barrel, depending upon its The approach has allowed the com- gas is 6.5%. But for drillers, it might grade. pany to stabilize its supply and to be effectively more like a rate of It’s not a mistake, either. strengthen it against market condi- 8.75%, and that has the industry Ohio tax commissioner Joseph tions like fluctuating currencies, concerned. Testa explained that a tax on what said president and CEO Rick Mal- The difference is due to this: drillers actually receive would be a son. While Ohio would tax drillers for the gross-receipts tax, while a severance But as the maker and value- “value” of the oil and gas they bring tax is applied to the value of the oil added distributor of nut and fasten- CONTRIBUTED PHOTO up, based on the national price of — and that value is best expressed er products for the automobile and A rendering of the 165,000-square-foot facility that Ramco is planning to build oil and gas at the time it is extract- in the national price. heavy trucking industry has in Hudson. ed, drillers in Ohio actually get far “We hear complaints that that’s brought in more equipment, the less than the nationally quoted higher than we actually get in Ohio company’s existing buildings have Ramco, which had global sales of access to about 125,000 square feet price. because of the discount issue,” Tes- grown a bit cramped. about $80 million in 2014, grew across its three buildings. “We get about 25% less than the ta said. “Our proposal says that if it’s “We are absolutely out of space “substantially” last year, Malson Ramco and the Malson family national price, on average,” said $4 on the national market, then $4 for that,” Malson said. said, attributing the bulk of the have been a “fixture” in Hudson for Shawn Bennett, executive vice pres- times (the volume of) your produc- So, Ramco is planning to con- growth to the new value-added many years, said the city’s econom- ident of the Ohio Oil and Gas Asso- tion — that’s your production val- struct a 165,000-square-foot build- products. The company has about ic development director, Chuck ciation. ue.” ing about a mile away from its three 130 employees in Hudson, with an- Wiedie. The company was founded That’s because Ohio does not yet Testa said the state is willing to current buildings in Hudson, Mal- other 45 at its site in Italy and three in 1977 by Malson’s father, Richard have the pipeline and gathering sys- listen to driller’s concerns and son said. Ramco has been in Hud- or four at a facility in Sweden. It has Malson, and was moved to Hudson tems in place to efficiently get its oil might be persuaded to allow for son since 1986. committed to hiring 20 additional in 1986. and gas to market, including to big some sort of discount, if a price for “We wanted to stay here, and we local employees in the next four The company is a good employer processing centers on the Gulf Appalachian oil and gas becomes were very happy we were able to,” years, he said. with high-paying jobs, and it’s been Coast and big consumption mar- set and published in the same way Malson said. The new building will be at 5445 actively engaged in bringing manu- kets on the East Coast. So they have as the national price. Ramco started making more of Hudson Industrial Parkway. Mal- facturing back from overseas, to sell their gas at a discount. But unless and until that issue is its products in-house about two son said he expects work on the Wiedie said, calling it a “fantastic” Bennett said that for 2014, the av- resolved, drillers could be stuck years ago, Malson said, though the new building to begin near the end corporate citizen. When the city erage price of natural gas was about paying the higher rate, if the gover- of April or the beginning of May, found out that the company was company doesn’t plan to make all $4.41 per thousand cubic feet (mcf), nor’s proposal becomes law. That’s with the project to be completed in looking to expand, it got involved of the products it sells. But the but in Ohio the average price was not fair, Bennett argues. December. Ramco is investing and identified the greenfield spot increased local manufacturing is about $3.28 per mcf, or $1.13 less. “The price on the board is the about $12 million in the new build- the company ultimately selected. something Malson said he has Some quick math shows how this price you get. It doesn’t matter what ing, and after the company moves Hudson worked out an incentive wanted to do locally for a while, and works against drillers in terms of a the (national price) is,” Bennett into the new building, he expects to package for Ramco that allows for a it’s a service the company’s severance tax. A tax of 6.5% applied said. “You can’t tell them I’m being sell the current site. 15-year, new construction tax customer base wants, as it shortens to $4.41 is about 28.7 cents. But 28.7 taxed at that higher rate, so I have to lead times. Ramco also has been The new site sits on about 23 abatement, as well as a pilot pro- cents is 8.75% of the $3.28 price that get that.” producing more engineered acres, and the company will have gram with the school board that en- drillers here actually receive. And sometimes, the discount is products, doing more work in the the ability to expand to up to sures the district will receive a por- The situation also exists for oil, even larger, he said. design and development of those 370,000 square feet, if necessary, tion of what would have been the which is being produced in Ohio as “I saw gas sold for 80 cents an mcf products. Malson said. Ramco currently has property taxes, Wiedie said. well, though in far smaller quanti- out of the Utica in early January, ties than natural gas. While the na- when it was still warm out,” Bennett tional price for oil, usually ex- said.

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MARCH 2 - 8, 2015 CRAIN’S SPECIAL REPORT CRAIN’S CLEVELAND BUSINESS 15

There’s no denying that Cleveland is a food town. We have brand-name locally grown chefs who could have easily developed their talents in other big food cities, but have committed to Cleveland as a place to invest and thereby elevate the dining scene. The region’s craft brewers, meanwhile, are an oft-referenced part of a national story line about the artistry’s rebirth and dramatic rise in popularity. Urban agriculture projects are cropping up across abandoned swaths of land, repurposing neglected properties for productive, sustainable use. Not to mention, we have the venerable 102-year-old West Side Market in Ohio City, located at the epicenter of one of Cleveland’s most activated artisan food neighborhoods. The region’s roots as a manufacturing hub enrich the landscape, while Cleveland’s heritage as a city of makers has inspired a new generation of food entrepreneurs who create products the old-fashioned way, from scratch. Cleveland’s culinary industry is rich and multifaceted. In this section, Crain’s profiles some of the industries and players who have shaped our contemporary culinary scene. We also look ahead to some of the opportunities and challenges that face the local sector as it grows and evolves.

STORIES BY KATHY AMES CARR, PHOTOS BY BURKLEHAGEN PHOTOGRAPHY 20150302-NEWS--16-NAT-CCI-CL_-- 2/26/2015 2:44 PM Page 1

16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015 Cooking up a legacy

Cleveland is fortunate to have a bevy of movers and shakers who have molded the culinary landscape. Here are just a few of the entrepreneurs whose contributions have helped create a vibrant, nationally recognized food and beverage

scene.

S S

Michael Symon Chef/owner Parker Bosley Karen Small Lola, Lolita, Roast, B Spot, Bar Symon, Mabel’s BBQ Chef-in-residence Chef/owner Fresh Fork Market Flying Fig; Market at the Fig Michael Symon drew national attention to Cleveland’s dining scene nearly 20 years ago, when he unveiled the original Lola in Tremont. He prepared sophisticated dishes based off traditional Widely considered the patriarch of the re- Karen Small opened her first gourmet food takeaway, recipes from his Greek-Italian-Eastern European roots. Items like beef cheek pierogies and mac- gion’s local food movement, Parker Bosley Grapes to Nuts, in the early 1980s in Bainbridge. The move and-cheese with roasted chicken, goat cheese and rosemary were a nod to his heritage and the has been a lifelong advocate for creating was admittedly premature at the time. diverse working-class culture within which Symon was raised. dishes around the seasonality of ingredients “There were great examples of this type of concept in The city pre-Symon was peppered with a few avant-garde establishments, but otherwise was from small farms. New York and California, but here, it was way too ahead of widely known as a town that craved the safe meat-and-potato dishes. Bosley grew up on a dairy farm in Trum- its time,” Small says. The North Olmsted native recalls some ripples in the culinary scene as a child in the 1970s bull County, where daily living orbited around The Shaker Heights native shuttered the restaurant after and ’80s, but not at the level of ingenuity that it has reached today. growing and harvesting food and nightly five years, then opened Ninth Street Grill, a mod- Mediter- “I can remember five or six really great restaurants that changed the culinary landscape in family feasts. ranean restaurant, in the Galleria at Erieview downtown. Cleveland,” he says. “Sammy’s in the Flats had eclectic food and the river view, you’d have the fine “Food had a great deal of respect among “I really hoped a renaissance was on for Cleveland, and dining at Giovanni’s and Baricelli Inn, farm-to-table at Parker’s. Julie and Mark Sherry (Players) were rural people,” he says. that we would have a vibrant downtown with housing, retail, doing gourmet pizza before Wolfgang Puck. Johnny’s (Bar) was a huge trendsetter in this city.” Those traditions followed him to Paris and neighborhood amenities and, of course, a great dining His early culinary influences were at home, where he assisted in preparing his mom’s lasagna the provincial towns of France, where scene,” she says. “I was a bit early in my optimism.” or pork neck ragù and his dad’s potato pancakes. He took a job as a rib cook at a local Geppet- Bosley lived and worked for a total of three She left the Ninth Street Grill and moved to The Fulton Bar to’s and attended the Culinary Institute of America in New York, where in 1990 he was voted years between the mid-1960s to the early & Grill, where she dove deep into seasonal, local food. “It Most Likely to Succeed by his peers. He returned to Cleveland and worked at various establish- 1980s. was just me in this tiny kitchen. I loved it,” Small says. ments (Players, Piccolo Mondo, Giovanni’s and Caxton Café) before opening Lola in Tremont, a In 1983, he joined Ralph DiOrio and Subsequent years were spent honing her skills throughout neighborhood on the brink of becoming a destination for food explorers. The momentum in Denise Fugo, co-owners of Sammy’s in the Northeast Ohio, including at a small bakery in South Russell. Tremont’s culinary scene spread like peanut butter on a piece of bread. Flats, who are credited with ushering in a “It was my dream place, but it was too small to make mon- More talented chefs and unfamiliar concepts in Tremont and nearby neighborhoods emerged. new level of fine dining in Cleveland. ey,” she says. “Rocco (Whalen) opened Fahrenheit, there was Dante (Boccuzzi), Zack (Bruell) and others who “My focus was classic food using local in- Small’s legacy move came with the opening of Flying Fig opened restaurants in Tremont and have stayed and expanded or left to do other things,” Symon gredients,” Bosley says. “I think we changed in 1999, a seasonally focused eatery surrounded by little says. the dining world in Cleveland. Food writers else than the West Side Market and Great Lakes Brewing Symon’s talent, infectious laugh and passion for his city drew interest from the Food Network didn’t know what to do.” Co. early on. In 2007, his claim to fame as an Iron Chef set the stage for a career as one of America’s Apart from Sammy’s, a couple other folks Fast-forward 16 years. most popular celebrity chefs. Cosmopolitan media took notice of Cleveland, and soon other talent- dabbled in nouvelle (or “new”) cuisine, While Ohio City now is a thriving artisan food district, with ed chefs and innovative restaurants became fodder for food magazines and TV programs. Bosley recalls, but the dining scene other- craft beer bars, restaurants and food businesses dotted all The city’s quality and depth of cuisine evolved. “We have five to eight really great chefs and wise revolved around meat and starches. along West 25th Street and Lorain Avenue, little has restaurants that you could put in any city and they would succeed,” Symon says. He went off on his own after about four changed at Flying Fig, apart from the next-door addition in The James Beard Foundation Award-winning chef and cookbook author’s restaurant empire has years to open the now-storied Parker’s New 2010 of an artisanal market. since swelled, to about 750 employees and $25 million in revenue. American Bistro, which due to a fire moved The eatery’s menu still is constructed around local and The current co-host of the popular “The Chew” splits his time mostly between Cleveland and from the St. Clair-Superior neighborhood to seasonal ingredients, which are much easier to source com- New York, though Symon still is intimately involved with his menu changes, concept development Ohio City. pared with the restaurant’s early days. and new restaurant openings. His latest venture, Mabel’s BBQ, is targeting a mid-summer opening Bosley retired from the business in 2006. Small prefers intimate involvement in the kitchen, which is on East Fourth Street. He now contributes to the education efforts why she’s shied away from the expansions so many of her “People ask me what Cleveland barbecue is — well, I’m going to show you,” Symon says. of local food buying club Fresh Fork Market, peers have successfully implemented. Of course retirement is the long goal, but expect Symon to stay in the left lane for sometime. sharing recipes and teaching cooking work- That doesn’t mean it isn’t on her mind. “I really enjoy splitting my time between the restaurants and TV and mentoring young chefs,” shops, such as canning and jarring and de- “I have plans for a fast-casual concept somewhere within Symon says. “I love watching our employees grow within our company. You’re really only as boning a chicken. downtown or the surrounding neighborhoods,” Small says. good as the people who come from your family tree.” 20150302-NEWS--17-NAT-CCI-CL_-- 2/27/2015 9:58 AM Page 1

MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17

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Pat and Dan Conway Zack Bruell Jonathon Sawyer Co-founders Chef/restaurateur/owner Chef/owner Great Lakes Brewing Co. Parallax, L’Albatros, Table 45, Chinato, Cowell & Greenhouse Tavern, Noodlecat, Trentina, Tavern Vinegar These craft beer pioneers are mired in a quandary that Hubbard, Dynomite, Kafeteria, Alley Cat Co., Sawyer’s Street Frites, SeeSaw Pretzel Shoppe most any business owner would yearn to have — demand for their product is so strong, that for the time being they Zack Bruell foresaw a career commandeering premier Count all of Jonathon Sawyer’s ethnic-driven eateries as part of Cleve- have to turn down distribution requests from markets such restaurants in southern California, where he spent his forma- land’s greatest hits collection of restaurants. as Boston, Texas and Florida. tive years cooking beside revered West Coast chefs. The French and environmentally conscious Greenhouse Tavern was at the Great Lakes Brewing Co. — which now has a 14-state dis- “My influences were not in Cleveland,” said the Shaker forefront of executing dishes based on nose-to-tail cooking. Sawyer intro- tribution footprint — has become a name brand in regional Heights native. duced Clevelanders to ramen by opening Noodlecat, a Japanese-inspired and national craft beer circles. He expected that the opportunity to return home and open a eatery based on hands-on training in Tokyo and New York. It’s a much different scenario than in 1988, when Pat and white tablecloth restaurant at Mayfield Heights’ Landerhaven Then he revealed a new level of dining in Cleveland when he opened Dan Conway’s Great Lakes Brewing Co. in Ohio City was the would be a temporary one. But his father died, and he altered Trentina, an intimate northern Italy-based eatery with a painstakingly con- only brewery in Cleveland. his plans to return to California so he could remain close to his structed tasting menu created with foraged native ingredients. “At the time, people were drinking the aggressively car- mother. National media have bestowed multiple awards upon Sawyer and his bonated, light-tasting, mass-produced beers. But the pendu- Bruell went out on his own and in 1985 he unveiled Z Con- restaurants, including Food & Wine’s Best New Chef and Esquire’s Best New lum started swinging toward craft beer, then gourmet temporary Cuisine in his hometown, which stayed open for sev- Restaurant of 2014 (honoring Trentina). breads, teas, chocolate, vegetables and meats, and it hasn’t en years. Early influences and his own love of cooking with his parents and grand- stopped,” Pat Conway said. “I’m proud to say we were at the “Back then, there were only three or four chefs and restau- parents paved the way for Sawyer to pursue a career as a mission-driven forefront of that.” rants in Cleveland that provided a great dining experience,” chef. “I think it was a combination of my personality, being immediately chal- Production for the nation’s 20th-largest brewer is estimat- such as Parker Bosley and Paul Minnillo, Bruell recalls. “We lenged and active in the kitchen, coupled with an understanding of the Euro- ed this year to reach 160,000 barrels, a number that contin- were appealing to people with wealth, and people with expense pean frugality of my upbringing,” he says. ues to outpace each previous year. Brewery sales averaged accounts, who had traveled to New York and Paris and under- Growing up as a child in the 1980s and 1990s in Strongsville, meals were a 19% compounded annual growth rate between 2004 and stood our concept. But there weren’t enough of them.” mostly made from scratch and consumed at home. 2014. Christmas Ale sales averaged a similar 23% com- The lack of locally grown goods didn’t help either. “We would go out for a Christmas meal at the Silver Grille after we saw pounded growth during the like period. “I had to ship in my produce from California and my fish Mr. Jingeling, but that was about it,” Sawyer says. The Conways are searching for more warehouse and pro- from New York. Dried goods came from Chicago and New After graduating from the Pennsylvania Institute of Culinary Arts, Sawyer duction space in Cleveland to keep up with demand. Addi- York. Fresh herbs didn’t exist,” he says. worked in Miami and then in New York alongside famed chef Charlie Palmer. tional brewpubs within and outside of the region are being Eventually he shuttered Z and its spinoff, then worked as an He also served as Michael Symon’s executive chef in New York before even- considered. Great Lakes’ sustainability initiatives, such as executive chef for eight years at Ken Stewart’s Grille in Akron. tually going out on his own in 2009 to open the Greenhouse Tavern. sourcing ingredients from its own farms and powering deliv- Bruell said he missed the entrepreneurial side of the busi- The two-time James Beard Award finalist and cookbook author now over- ery trucks with renewable fuels, add to the craft brewer’s ness and in 2004 he opened Parallax in Tremont. “I started sees 190 employees. While he’s packed a career’s worth of accomplish- legacy. with 25 employees,” he says. ments in just a few years, his goals foretell of a legacy still in its infancy. The Conways say they remain focused on dispensing a Eleven years later, Bruell oversees more than 300 employ- He just published his first cookbook, “Noodle Kids.” Next up, Sawyer is quality product while trying to position the company as a ees, and he is scheduled to open in summer his eighth Cleve- exploring an expansion of Noodlecat into other markets. leader in an increasingly crowded market. Meanwhile, land restaurant — Alley Cat in the Flats East Bank. His line of handcrafted vinegars and pastas are making their way into oth- throughout the craft beer industry, consolidation is taking “The Cleveland dining scene is way different from what it er metropolitan cities. He’s also scouting urban industrial warehouses for ad- place, with Big Beer thirsty for some of the smaller labels. once was. There’s no comparison,” Bruell says. “Now we have ditional space that will allow him to make and distribute pasta, salt, miso As Pat Conway references this observation, he dismisses locally grown products,” including his eponymous line of olive and other fermented products. the possibility of a similar outcome in Great Lakes’ future. oil, coffee and vinegar. A recent Instagram post of a field notes steno book alludes to his next “We’re proud of the fact that we’re family owned, and we “People are more educated, and they understand that high personal project: “Starting to put the pencil to paper and crank on The Vine- don’t want to be everywhere,” he says. “We just want to fo- quality ingredients is what constitutes excellent food,” he says. gar Compendium. It’ll be at least 90 recipes, how to, history, health, cock- cus on getting deeper into our current markets.” tails and so much more,” he wrote. 20150302-NEWS--18-NAT-CCI-CL_-- 2/27/2015 9:59 AM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015

What’s needed to take Cleveland to the next level Restaurants and industries w in the national food scene? Sterle’s Country House “The city’s cuisine needs more depth St. Clair-Superior neighborhood; and diversity. We need chefs willing Established 1954 to try something really different. I feel like It’s hard enough to open a restaurant. But over the last five to 10 years, there’s been imagine becoming a first-time owner after buying some mimicking of successful concepts. a 60-year-old ethnic establishment that has such a dedicated following, the customers would know if We have like 50 farm-to-table restaurants you changed the brand of bathroom toilet paper. now. I’d like to see more Vietnamese, That’s the situation Rick Semersky faced after Korean, Cuban and Spanish restaurants. rescuing Sterle’s Country House from an unknown I also think some chefs worry too fate when he bought it from its previous owner in 2012. much about national trends like in L.A., “I own a construction company near Sterle’s New York and San Francisco, when and had been eating there for years,” he says. they should be focusing on what “I noticed it had been listed for sale. My grand- mother lived a couple streets away and also had customers in Cleveland want ...” been a customer there. I didn’t want to see it go MICHAEL SYMON away.” So, he bought the “tired and worn” St. Clair-Su- perior neighborhood fixture on East 55th Street. “I feel like we’ve hit a formula here, “Sterle’s was built on Slovenian-Eastern Euro- pean neighbors, but a lot of them were gone CONTRIBUTED PHOTOS (3) where there are a lot of talented chefs, when I took over. The younger people weren’t but we’re seeing a lot of similar concepts coming here,” he says. “I wanted to revive it so that my generation and my children’s generation could enjoy it.” and menus. I don’t feel like we offer Sterle’s history dates to 1954, when Frank Sterle, an immigrant from Slovenia, opened the eatery in a small building in the once-bustling Slovenian-Croatian neighborhood. Customers flocked to Sterle’s for its authentic cuisine and world-class polka performances. It changed hands the breadth and depth of cuisine that in 1986 after Sterle passed away. Second-generation owners Mike Longo and Margot Glinski operated it for 25 years before Glinski listed it for other cities offer. I’d like to see more sale. Now, to preserve tradition while catering to a new generation, Semersky has adopted the “old is the new new” philosophy. Mediterranean, Asian and southern The staples — chicken soup, wienerschnitzel, paprikash — remain untouched. But, more fresh local ingredients were brought in, such as French cuisine. I’d also love to see Cleveland Kraut’s products and local caterer Clark Pope’s sauces and Bloody Mary mix. A 150-seat bier garden was added. “We want to remain true to our roots but are also making it fresh and viable,” Semersky says. more intimate neighborhood He also is adding some reinforcement to the site in the form of the multimillion-dollar, 42,000-square-foot Hub 55 project, which will include a restaurants emerge.” brewery and taproom, farmers market, health foods café and retail. The Hub 55’s various components will come online this year in phases. “We’ve been seeing a lot of new regulars along with the old regulars coming back to Sterle’s and the neighborhood,” Semersky says. KAREN SMALL

“We need more national exposure. I’d love to see a major show based around the city that highlights our culture and cuisine.” JONATHON SAWYER

“I hope we continue to build on the local food movement and shift more of our spending and consumption to local products.” DAN CONWAY

“We’ve been through the shock and awe of food — the new products, bizarre pairings of ingredients, chasing the latest trends and the adulation of celebrities. Slyman’s Sokolowski’s University Inn I think people are beginning to say, ‘Just St. Clair Avenue, Cleveland; Established 1964 Tremont; Established 1923 a minute. What about the health and This mecca for corned beef sandwiches has remained a desti- After 91 years of business, Sokolowski’s University Inn in nation by doing what it has done for the last 50 years. Tremont is still packing its dining room with customers young environmental issues with our food?’ If you “We haven’t changed our recipes at all since we opened in 1964,” and old who crave those sturdy Polish and Eastern European want to be a leader, that’s the level you says co-owner Freddie Slyman, noting that Orlando Baking Co. and dishes. seek. This has been the entire focus of my Vienna Distributing Co., both Cleveland businesses, have supplied the “Cleveland and its dining scene has changed so much, but we bread and meat since the beginning. work. I also really hope we return to the din- haven’t, and that’s why we’ve remained relevant after all these The fixture on St. Clair Avenue in Cleveland has been in the Slyman years,” says third-generation co-owner Michael Sokolowski. ner table, where food is a celebration of us, family since its founding. Freddie’s uncle, Ralph Abdallah, opened the His grandparents, Victoria and Michael Sokolowski, opened and bring to the table food that is good eatery after he emigrated from Lebanon. Freddie’s parents, Joseph Sokolowski’s in 1923 as a tavern that catered to the city’s im- for us and for the environment. Everyone and Mae, ran it for a long time, back when Slyman’s was a “hole in migrant working class. Michael’s parents took over in the the wall” with just two counters and five tables. 1950s, and reframed it as a cafeteria, serving up hearty dish- needs to stop, blow the whistle, get out “Slyman’s was built on regulars,” Freddie says. “The same people es created from their Polish-American family recipes. of the pool and make sacrifices to ate lunch and dinner here. We used to know everyone by name. Now Thousands of pierogies are served each week. Stuffed cab- change the entire system.” it’s become a little bit of a tourist attraction.” bage and beer-battered perch top order requests, as does, of The restaurant subsequently expanded because of demand, course, his mom’s famous Salisbury steak, Sokolowski said. PARKER BOSLEY adding 45 seats in 1988. It has served presidents, food critics, TV “We’ve seen a lot of younger people coming in over the past personalities, celebrities and professional athletes. few years who want the quality, ethnic comfort food that we Slyman’s busiest day of the year is St. Patrick’s Day, with Freddie are known for,” he said. “Winter is our busiest time of year. “The city needs more out-of-town and and his brother, Moe, making and serving nearly 2,000 corned beef Even with the road closures and Innerbelt (Bridge) construction, sandwiches in a 12-hour span. our regulars and new faces always make it in, especially on convention business. The renaissance Plans to expand the venerable Cleveland brand are underway. A Sly- Saturday nights. That’s our home run day.” won’t be complete until more businesses man’s will open in Independence sometime this spring. Freddie and Sokolowski’s Inn in 2014 was one of five restaurants nation- relocate from the suburbs. We also need Moe also are eyeing Medina, Akron, Detroit and Columbus as poten- wide to be honored by the James Beard Foundation with the tial markets for the concept. more restaurant industry talent. There’s “America’s Classics” award, which is presented to eateries “There aren’t many delis around anymore. It’s very labor intensive,” demonstrating timeless appeal by serving quality food that re- a serious labor market shortage.” Freddie says. “Our approach has always been an individualized, per- flects the character of their region. sonal treatment of food, and people keep coming here because of ZACK BRUELL “What an honor to have such a loyal, loyal following of cus- that. We’ve been referred to as an ‘institution,’ and we’re honored to tomers, and then to receive that type of recognition,” have that reputation.” Sokolowski said. 20150302-NEWS--19-NAT-CCI-CL_-- 2/27/2015 10:01 AM Page 1

MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19 with roots in the past PLAN YOUR WORKPLACE Craft beer RETREAT Brewing is ingrained in Cleveland’s history. The city Great Lakes Brewing Co. opened in what was then a dilapi- had two breweries when its first directory was published in dated Ohio City neighborhood, at the site of the 19th centu- Common Ground corporate 1837. ry Schlather Brewing. retreats combine challenging More family owned breweries, founded by German or “Nothing conjures up the romance of brewing like a build- ŽƵƚĚŽŽƌ ĂĐƟǀŝƟĞƐ͕ ƉƌŽĨĞƐƐŝŽŶĂů Bohemian immigrants, emerged, and by 1910, Cleveland ing boarded up on a West 25th side street,” Great Lakes growth programs and team- had 26 breweries operating near or along the banks of the Brewing Co. co-owner Pat Conway says. “But we knew it Cuyahoga River. would be a stunning location for Cleveland’s first brewery.” ďƵŝůĚŝŶŐ ĞdžĞƌĐŝƐĞƐ ƚŽ ĚĞǀĞůŽƉ But several national trends stymied these smaller brew- Since then, the pace of craft beer’s growth in Northeast your associates’ leadership skills ers. The Internal Revenue Act of 1862 initiated taxes on Ohio, particularly over the last decade, is making up for lost ĂŶĚƉŽƚĞŶƟĂů͘ malt beverages. The discovery of pasteurization led to op- time, with increasing production levels and a stronger mar- portunities for new market expansion. ket share. Northeast Ohio now has 22 breweries, with plen- “Combining the Canopy Tour with Larger brewers formed, forcing a consolidation among ty more in the works. a half-day Leadership Retreat smaller businesses. Prohibition in 1920 exacerbated brew- The state’s three largest local craft brewers — Great at Common Ground was the best ers’ problems, and they either had to liquidate their proper- Lakes Brewing Co., Thirsty Dog Brewing Co. and Fat retreat I’ve had with my team!” ty or make other products. When Prohibition was lifted 13 Head’s Brewery — all are based here, and are undergoing X Allison M. Boersma, &K͕KKZŝĚĚĞůů years later, four breweries in Cleveland remained and sub- physical expansions as year-over-year demand surges. sequently expanded output. But, the local industry never ful- Craft beer-prenueur Sam McNulty, meanwhile, plans to ly recovered from its 19th century heyday, peaking at nine exponentially increase output and his beer’s geographical breweries in 1939. The national labels got bigger and big- footprint once his Palace of Fermentation comes online. ger. Also located in Ohio City, it will build on McNulty’s West The last Cleveland brewery shuttered in 1984. But, that 25th Street empire, which includes Market Garden Brewery www.commongroundcenter.org or (440) 707-2044 wasn’t the end of the story, of course. Four years later, and Nano Brew.

Urban agriculture Cleveland was a national example of the foreclo- has been replicated by other cities throughout the nation. sure crisis nearly a decade ago. But the city also gar- (The initiative in 2012 also was awarded the American Plan- nered nationwide recognition by using this unflattering re- ning Association’s National Planning Excellence Award for In- cent history as a chance to breathe new life into blighted novation in Sustaining Places, the group’s highest honor.) areas with urban agriculture and other sustainability mea- Indeed, a small percentage of those parcels have been sures. reimagined into community gardens and farms, many of The city enacted policies and ordinances to support urban which don’t generate much — if any — profit, said Terry gardening and the raising of chickens, bees and livestock. Schwarz, director of Kent State University’s Cleveland Ur- Green projects grew from crumbling cement and overgrown ban Design Collaborative. plots of earth. Cleveland has 3,600 acres, or about 23,000 Green City Growers Cooperative in Cleveland’s Central parcels of vacant land. About 11,700 parcels are in the neighborhood and the Urban Agriculture Innovation Zone in Cleveland and Cuyahoga County land banks. Kinsman both have demonstrated how urban agriculture More than 30 entities representing public, private, institu- can be scaled up while revitalizing economically challenged tional, nonprofit, foundation and civic groups convened in areas. MARCH 2007 to develop the “Re-Imagining a More Sustainable For those looking to capitalize on smaller urban agricul- Cleveland” initiative to convert some of those vacant prop- ture ventures, expect to see more farm startups focused & erties into productive landscapes that ultimately would in- on producing high-value specialty crops, such as fruits, 20 21 crease property value. berries, shitake mushrooms and herbs that yield higher Nearly $2.5 million has been invested into green space margins, Schwarz says. 2015 improvements. More than 300 parcels of land have been But the bigger picture isn’t solely about making money. CLEVELAND CONVENTION CENTER transformed through a collaborative funding effort between “Urban agriculture won’t replace traditional agriculture the nonprofit Cleveland Neighborhood Progress and govern- anytime soon,” Schwarz says. “There’s this whole social The 19th Annual Heinen’s/WVIZ Grand Tastings provide an expansive ment and for-profit partners. The “Re-Imagining a More Sus- capital aspect that builds relationships and defines commu- opportunity for both wine novices and connoisseurs to sip, swirl and savor. tainable Cleveland” strategy now is a national model that nities. Urban agriculture is a small but powerful movement.” Net proceeds benefit WVIZ/PBS ideastream. FOR TICKETS, VISIT: CLEVELANDWEEKOFWINE.ORG

Food manufacturing Pierre’s, Malley’s, Orlando, Shearer’s, Nestlé, J.M. Western Reserve Historical Society. Wholesale grocers Smucker, Sugardale, King Nut, Bertman Ball Park emerged, occupying plants in the Flats and the Warehouse Mustard and so many more. Northeast Ohio is home District to make canned, bottled and packaged goods. base to more than 370 processing and manufacturing The formation of the Cleveland Union Stockyards Co. in companies that distribute food and beverage products the late 1800s in what is now the Detroit Shoreway neigh- worldwide. borhood paved the way for Cleveland to become one of the The region’s roots in food processing stem to the mid- largest meat-processing centers in the nation in the 1940s. 19th century, when some of the earliest wholesale distribu- Today, food manufacturing in Northeast Ohio represents tors formed to ship food within and outside Cleveland’s bor- a $3.1 billion industry, with many of the family owned com- ders. They took advantage of the industrialized center’s panies formed prior to or around the mid-20th century are Ohio and Erie Canal, Cuyahoga River, Great Lakes, railroad still thriving as third- and fourth-generation operations. system and eventually highways and airports. Indeed, according to Team NEO, food manufacturing and Q DID YOU 256> “One of the biggest players at the time was the William automotive are the only two manufacturing sectors in IT experts placed by Nesco Resource Edwards Co.,” located in the Flats, which was considered Northeast Ohio that are expected to add new jobs over the one of the foremost food distributors and food processors next decade. are driving the ease of online bill pay, in the country, says John Grabowski, a history professor at “Everybody has to eat, so it’s a good business to be in,” mobile banking and check deposits Case Western Reserve University and a historian at the Grabowski says. today?

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20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015 Sector serves up opportunities, challenges From staffing troubles to a more competitive landscape, the food scene is not without some obstacles Seemingly every week, a new restaurant is putting out a top-notch dish.” tial locations for a second Spice eatery. folks are also asking about the possibility of cropping up in or around downtown Cleve- The restaurant industry, and not just local- “You have to create opportunities for your local craft beer distributorship.” land. Some of them are intimate neighbor- ly, has always been known for its high leaders,” he says. Meanwhile, the pace and quantity of new hood eateries and nondescript bars. Others turnover rate. Chef-owners expect that even The need for a broader, qualified talent restaurants has prompted some in the indus- have a front row to the downtown dining dis- the most seasoned sous chefs or general pool presents an opportunity for more trade- try to speculate whether the industry has tricts, flush with a couple hundred seats or managers will find work elsewhere, or launch based educational centers to form and sup- reached a bubble. even more. Downtown Cleveland in 2014 their own concept, as their careers mature. port the hyperactive food and beverage sub- Others don’t believe the city has reached alone saw the addition of 19 new restaurants. Nonetheless, restaurateurs say the talent sector, said craft beer entrepreneur Sam that point yet, as the urban population influx More are on the way. It’s an exciting time to shortage, particularly among top posts, is a McNulty. and the pace of residential and commercial be a diner and a restaurateur in Cleveland. persistent issue. People increasingly are viewing the hospi- redevelopment continues to fuel resurgence. The blitz of new eateries means more jobs “There used to be an understanding tality industry as a career and not just as a job “We’ll see more restaurants opening as for the region and additional dining choices among a lot of the chefs here in town that you that pays the bills during college, which justi- long as the population continues to increase for guests. But some in or attached to the in- wouldn’t hire someone else’s employee if you fies that direction, he said. downtown and in the inner-ring neighbor- dustry say the growth pace presents both new heard they were looking for another job,” Indeed, employment in the leisure and hos- hoods,” said Tracey Nichols, the city of Cleve- opportunities as well as some challenges. Hodgson said. pitality industry is expected to grow 8.2%, from land’s economic development director. The already difficult task of recruiting and But that informal policy has softened 86,400 to 93,500 jobs, between 2010 and 2020, Similarly, Greenhouse Tavern/Trentina retaining talent is mounting. Plus, the prolif- somewhat through the years. Candidates’ according to the Ohio Department of Job and chef Jonathon Sawyer said that mentality is eration of choices means restaurants must employment options have expanded, so op- Family Services 2020 Job Outlook report. misguided. “That’s an old-fashioned view- constantly innovate to find new and creative erators need to seize the opportunity if they “We definitely have a long ways to go be- point,” he said. “You see that oversaturation ways to attract diners. hear that a qualified candidate is interested in fore we can say we have an adequately really only happening in the chain market.” That dynamic makes it more difficult for making a move. trained hospitality workforce,” McNulty said. Looking forward, Eric Williams, chef/own- restaurants to consistently prepare and exe- “It’s an employees’ market right now,” Hodg- “Along the craft beer side, there’s a huge er of Momocho, Happy Dog and El Carnicero, cute dishes according to the chef-operator’s son said. “We’ve started to expand our new hire shortage in training,” he said. “Production is said he thinks smaller, individualized con- expectations. search outside the city, like Columbus.” moving from the Budweisers of the world, who cepts are an emerging trend. He echoes a sen- “You used to be able to roll out a core Ben Bebenroth, chef/owner of Spice brew with a click of a mouse, to the more arti- timent held by the industry’s other frontrun- menu, and focus on executing it perfectly. But Kitchen + Bar, said he also has cast a wider sanal hands-on craft. We’re working with ners, like Michael Symon and Karen Small, consumers ... want that instant gratification,” net for qualified staff. Indeed, he recently re- Cleveland State University to build a certificate that Cleveland needs more diversity in its said Driftwood Restaurant Group co-owner cruited Spice’s new general manager from program around fermentation science, which restaurant cuisine and concepts. Chris Hodgson. New Mexico. Bebenroth and other estab- will include science of brewing classes.” “I have three restaurant concepts that I’m “They want to know what’s new on the lished chef-driven eateries that are in a McNulty said he also thinks the industry either the chef-owner or silent partner, and I menu each week, what cocktails have growth spurt say expansion not only serves needs to develop the infrastructure to sup- can sleep at night because they are original changed,” he said. “When you’re regularly the market’s need, but provides the chance port the region’s growing restaurant, food and successful,” Williams said, adding that he training new employees, it becomes more for their employees to grow within the com- business and craft beverage sectors. has two new concepts on deck. challenging and you have to work harder to pany. Bebenroth currently is scouting poten- “There is a big need for the inputs, like lo- “We need to celebrate the independent ensure your kitchen cally grown hops,” he says. “And a lot of thinker,” he said. is consistently

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The Char and Chuck Fowler Family Foundation 14-4453 20150302-NEWS--21-NAT-CCI-CL_-- 2/27/2015 10:19 AM Page 1

MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 21 LARGEST CULTURAL ATTRACTIONS H@G1%HH

Company Attendance Operating Address % budget Full-time Seasonal Year Top local executive Rank Phone/Website 2014 2013 change (millions) employees employees founded Business description Title Playhouse Square H.0.280#>0"" 8).&2 8"08-).&8>9. 1 1$G1A,)HB 5A)> @GG, B ,.%%11$ 11GGGGG 1GGGGGG 1G5G H 1<1 H 1/;? 8>9 A>)0.C'), 8 >).& 9>).>)0. H8>,0 3@1<4;;1(%%%%=CCC52,E'0A9 96A8 508& >'>9>8 .&>' .9>' 8 &)0.79 0.0-E 28 9) .> The Cleveland Museum of Art H)9>).&A)9' 0-28 ' .9)B 8> 2 111$G9>,B5, B ,.%%1G< $!$1%! $;;@1$ 15% $?5$ @/% H 1/1< -A9 A-0. 0".08>' 9> 8.')079 ),,)-58)9C0, 3@1<4%@1(;?%G=CCC5, B ,.8>508& 28).)2,)B).A,>A8,).9>)>A>)0.9 )8 >08 Rock and Roll Hall of Fame and Museum Inc. 3 11GG0+.0,,,B5, B ,.%%11% %%1! '.).92)8 >'80A&' 8 &88)9 3@1<4;!1(;<@$=CCC580+',,50- >' 20C 80"80+.80,, 28 9) .> E. J. Thomas Hall-The University of Akron H2 8"08-).&8>90-2, D.A,>A8, 4 1/!),,>5H+80.%%?@$ %1$GGG %@$GGG 3@5%4 @5G 11 ?GG 1/;? .> 8,0> 0.>' .)B 89)>E0"H+80. .5', 3??G4/;@(<$;?=CCC5A B .>950- -2A9 D A>)B )8 >08 Blossom Music Center - Live Nation 5 11%$5> ,908. 890AE'0&,,9%%@@? %GGGGG %GGGGG G5G H 1 /GG H )B .> 8>).- .>280A>)0.. 0.E.. 3??G4/@G(!G%G=CCC5,0990--A9)50- -.& - .> & . 8,-.& 8 The Musical Arts Association 2 8>).&' , B ,.8' 9>8 6 11GG1A,)HB 5, B ,.%%1G< ?!@;?$ ?@G/GG 1/5? %!5; @1% ?;! 1/1$ B 8. ,,.>' ,0990-A9) 8E.90. 3@1<4@?1(;?GG=CCC5, B ,.08' 9>850- 9>)B, D A>)B )8 >08 Great Lakes Science Center ."08-,9) . > '.0,0&E .&). 8).& 7 '34 A>)0."0808>' 9> )89> .5,, .0& . 3@1<49) . 50- ')0 28 9) .> Cleveland Museum of Natural History 8 1 B,8)B , B ,.%%1G< @$%%!! @<<;/; 3%5<4 1@51 1G$ 1< 1/@G 2 8>)0.0".>A8,')9>08E-A9 A- B,E.> 9 3@1<4@?1(%)B )8 >08 , - .>-),>0. Cleveland Botanical Garden H.0.280#>).9>)>A>)0...>)0.,, 8 28 9) .>:>,) 9 11G?G9>,B5, B ,.%%1G< @1@!%; 1!!<)A,>A8 .0>.), 0.E. D A>)B B) 3@1<4;@1(1)0. 28 9) .>

Stambaugh Auditorium 0.280#>B .A 9>,)9' >0280B) 10 1GGG)">'HB 50A.&9>0C.%%$G% 1@1?!< 1@GGGG 15@ H ; $? 1/@< 280&8-90"A,>A8 .> 8>).- .>. >>& 3??G4;%;($1;$=CCC59>-A&'A)>08)A-50- A>)0.>09A880A.).&0--A.)>) 9 & . 8,-.& 8 The Butler Institute of American Art 0A)9H50. 11 $@%)+HB 50A.&9>0C.%%$G@ 1@G?GG 1@$GGG 3?5!4 H @% H 1/1/ H8>-A9 A- )> >0H- 8).8> D A>)B )8 >08 3??G4;%?(11G;=CCC5A>, 88>50- ') "A8>08 Canton Palace Theatre Association 12 HB 508>'.>0.%%;G@ 1@GGGG 1GGGGG @G5G G5< ? 1$ 1/@< 1$G/(9 >')9>08)>-092' 8)>' > 8 08&)D09 3??G4%$%(!1;@=CCC5.>0.2, >' >8 508& ,0> ).0C.>0C..>0. D A>)B )8 >08 Akron Civic Theatre 13 1!@5).>5H+80.%%?G! 11!@;! 11/;%1 315@4 @51 ! @G 1/@/ 8"08-).&8>9 .> 8 0C888 3??G4@$?(@%!!=CCC5+80.)B)50- D A>)B )8 >08 Stan Hywet Hall & Gardens >.EC >,,8 .)9.8 )> ).0.8 14 ;1%508>& >'H+80.%%?G? 11%;<; /G1@@ @;5? %5< ?! %! 1/$; .0.280#>')9>08)'0A9 -A9 A-. 28 9) .> 3??G4!?<($$??=CCC59>.'EC >508& ')9>08)&8 . D A>)B )8 >08 Great Lakes Theater , B ,.79280" 99)0.,,99)>' > 8 15 1$G1A,)HB 5A)> ?GG, B ,.%%11$ 1G@?%@ 1?;@;< 3@$5%4 ?5! 1; ;G 1/<1 0-2.E2 8"08-).&>>' ...')0 0E,08 3@1<4@%1($%/G=CCC5&8 >,+ 9>' > 8508& ' >8 9,E'0A9 6A8 D A>)B )8 >08 , - .>-),>0. The Holden Arboretum H808 >A-0>.),&8 .0.9 8B>)0. 28 9) .>:>,) 16 /$GG2 88E0)8>,.%%G/% /$1?@ /1@?< %5? <5! $@ ?G 1/?1 8 0.E. D A>)B B) 3%%G4/%<(%%GG=CCC5'0, .8508& 28 9) .> Children's Museum of Cleveland ' 8 90A8 "08,,E0A.&'),8 .28 .>9 17 1G;?GA,)HB 5, B ,.%%1G< /1/%1 /%;<1 3?5G4 151 11 1$ 1/!1 .8 &)B 89>0 .&& )."A.)..0B>)B 8)-2. ,,) 3@1<4;/1(;11%=CCC5, B ,.'),8 .9-A9 A-508& ).> 8>)B 2,E D A>)B )8 >08 Cleveland Play House H.8>)9>(8)B .>' >8 9 8B).&>' 18 1/G151?>'>5A)> @GG, B ,.%%11% ;<GGG ;;GGG 315?4 ;51 ?< 1G/ 1/1$ 0--A.)>E:-).9>& 280A>)0.9. B).008 3@1<4%GG(;GGG=CCC5, B ,.2,E'0A9 50- >' >8 A>)0.280&8-9 -.&).&)8 >08 Beck Center for the Arts 80" 99)0.,>' > 80.>C09>& 9 19 1;!G1 >80)>HB 5+ C00%%1G; <%1@$ 9 A>)0.8 >)B A).5).'0A9 3@1<4$@1(@$%G=CCC5 + .> 8508& 8>9>' 82) 90A>8 '. D'))>)0.9 28 9) .> Akron Art Museum ' C) ,E,)- . C"),)>E 20 . 5)&'>5H+80.%%?G! $<$GG $$GGG @5; H @$ H 1/@@ 9'0C9 98 &)0.,.>)0.,. 8+9A0+ 3??G4?;<(/1!$=CCC5+80.8>-A9 A-508& ).> 8.>)0.,8>8 > 9). 1!$G D A>)B )8 >08 Magical Theatre Co. &),' >8 05)9280" 99)0., 21 $<%5A98C9HB 5A)> ?G;8 8>0.%%@G? $1@1$ %!G@% <5< G5$ @ %1 1/;@ 8 9) .>.>0A8).&>' >8 "08E0A.& ..)970.. ,, 3??G4!%!(?;G!=CCC5-&),>' >8 508& A) . 9."-),) 9 0(280A).&)8 >08 McKinley Presidential Library & Museum 22 !GG)., E0.A- .>8)B .>0.%%;G! %!1G1 %!$$/ 3G5/4 G5; ! H 1/%< H0-28 ' .9)B "-),E .> 8 9)&. >0 *0E A> 3??G4%$$(;G%?=CCC5-+)., E-A9 A-508& .> 8>).. A> '),8 ..A,>9 )8 >08 The Cleveland Pops Orchestra 0.280#>$G1343?408&.)F>)0.5 23 @%GGG 8.>), 0A)> !, B ,.%%1@@ ?/G1< @!!$! ?$5@ 151 ? H 1//? . 2 . .>9E-2'0.)202908' 9>8 ')8, E08& .9> 8. 3@1<4;<$(;<;;=CCC5, B ,.202950- 9 8B).&08>' 9>')00--A.)>) 9 28 9) .> Museum of Contemporary Art Cleveland '8 -*08 D'))>)0.9 90.92 8E 8 24 11%GGA,)HB 5, B ,.%%1G< ?/GGG $1GGG 3@?5$4 @5! @% 1@ 1/'>" >A8 ,0,.>)0.,. *),,.E 8 3@1<4%@1(!<;1=CCC5-0, B ,.508& ).> 8.>)0.,,E280-). .>8>)9>9 D A>)B )8 >08 Western Reserve Historical Society 0.280#> A>)0.,).9>)>A>)0.>'> 25 1G!@$9>,B5, B ,.%%1G< ?$0 D2,08 >' ')9>08E. ,,E,0. (,, 3@1<4;@1($;@@=CCC5C8'9508& A,>A8 0"08>' 9>')0 Akron Symphony Orchestra H+80.79280" 99)0.,08' 9>8.E0A>' 26 /@5).>5H+80.%%?G! ?%$%< ?1%$< /5! 15/ < 1@1 1/$G 08' 9>8280B)).& A>)0.. A,*88 >> 3??G4$?$(!1?1=CCC5+80.9E-2'0.E508& 0A>8 '280&8--).& D A>)B )8 >08 Rutherford B. Hayes Presidential Center .8)',)B 9>'80A&'>' 28 9 8B>)0.0" 27 2) & ,80B 8 -0.>%?%@G ??GGG %GGGG 31;5$4 H 1! H 1/1< 2) & ,80B .).8 9 >' '8)9>) ).).& 8 3%1/4??@(@G!1=CCC58'E 9508& A. 89>.).&0"8 9) .>E 9 D A>)B )8 >08 Massillon Museum 0,, >).&28 9 8B).&. D'))>).&8> 28 1@1).0,.E9>99),,0.%%<%< ?@G;@ @?;%< ?$51 G5/ < % 1/?? .8>)">9>0 .8)'>' 0--A.)>E H, D.8)'0,)900. 3??G4!??(%G<1=CCC5-99),,0.-A9 A-508& >'80A&' A>)0.. D2 8) . D A>)B )8 >08 H280" 99)0.,,> 8.>)B >' >8 0-2.E Cleveland Public Theatre 280A).&C08,28 -) 8 >' >8 E-0.0&. 29 <%1$ >80)>HB 5, B ,.%%1G@ ?G@G/ ?1%?< 3?5/4 15$ 1% ;; 1/!? 2 8"08-. 9.C8(C)..).& D A>)B 8>)9>))8 >08 3@1<40.,). 508& A>)0.,280&8-9 0A8 ."08->)0.)99A22,) E>' 0-2.) 9A., 99"00>.0> 58).79, B ,.A9). 990 9.0>). 2 . .>,EB 8)"E>' )."08->)0..>' 8 )9.0&A8.> >' 9 H 08'5),,E 8 ,)9>).&98 0-2, > 08A8> 5 C ,0- ,,8 920.9 9>00A8,)9>9.C),,).,A 0-)>> )."08->)0.08,8)#>)0.9).0-).&)99A 95' 00+0")9>9. .'. B 89)0.90"-09>,)9>9C)>'-08 0-2.) 98 B),, >02A8'9 >CCC58).9, B ,.50-5 20150302-NEWS--22-NAT-CCI-CL_-- 2/27/2015 1:25 PM Page 1

22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015 MARIJUANA continued from page 5 figure out how to put them together.” One of those pieces was right in front of Garett Fortune, a local en- trepreneur whose original claim to fame came as the leader of OdorNo, a local firm that makes odor-proof bags for human and animal waste. It turns out there was a need for a similar product to mask the sweet, yet often skunky, aroma of un- smoked cannabis. Now, under the branding FunkSac, he’s making odor-proof and child-proof bags to store mari- juana. The company, which manu- factures in Solon and Columbus, began to take off last August, and Fortune expects to do $5 million in revenue this year. Being promi- DAN SHINGLER (L), CONTRIBUTED PHOTO nently featured in The New York Garett Fortune, left, said FunkSac, which makes odor-proof and child-proof bags Times didn’t hurt business either, to store marijuana, expects to bring in $5 million in revenue in 2015. Patrick he said. McManamon is managing director of Cannasure, which specializes in insuring “It’s stressful because we’re go- marijuana facilities. ing so hard,” Fortune said. “There’s They’re not paranoid surance for the insurance firm that long hours and a lot of back and bears his family’s name. forth out West, but we’re having so Despite their dabbling in a less- than-conventional industry, at least “I don’t think a lot of people much fun.” know what we do,” McManamon That said, both Fortune and Far- by Northeast Ohio’s standards, Far- row and Fortune say their involve- said, “except for maybe friends, row said their businesses were born family and colleagues. But people out of tragedy. In Fortune’s case, ment in businesses that service the marijuana trade haven’t hurt their should know that this business isn’t his brother was diagnosed with going away. Too many tax dollars cancer in early 2013, and the dis- other endeavors. “I have two kids, and it’s sort of are at stake, and there are too many ease was so advanced that all he people employed.” Are you ready could do was attempt to live the rest funny how other parents come up McManamon has quietly operat- of his life in as little pain as possible to me and give good feedback,” for April ed his enterprise since about 2011, — something with which marijua- Fortune said. “There’s no hiding showers and na helped. The suicide of Farrow’s what I do out West. We’ve em- but 2014 was “just an avalanche” in May flowers? best friend focused his own inter- braced it. This is an industry that’s terms of business. From 2013 to ests on deaths due to pharmaceuti- going places.” 2014, his firm’s revenue has grown cal drugs — one of the side effects, Patrick McManamon would by 400%. During the same period, CALL TODAY FOR YOUR COMPLIMENTARY ANALYSIS! he said, as opposed to marijuana, is agree. He’s managing director of Cannasure stomached a 600% depression. Cannasure, a Westlake-based firm growth in customer and premium “When I looked at what was hap- that specializes in insuring marijua- volume. Providing Commercial & Multi-Family Landscaping Service Since 1995 pening with these drugs with my na facilities. “We’re sipping on the end of the personal experience with my best Before going all-in with his Can- fire house and trying to hold on to friend, it made me start looking at nasure business, McManamon spe- it. We get so many requests every things even closer,” Farrow said. cialized in medical malpractice in- day,” he said.

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MARCH 2 - 8, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 23

ARE THEY CHARITABLE NONPROFITS? INCLUSION Do all economic development improving public health. JumpStart continued from page 5 about these issues. And in some Seeking solutions Regional Competitiveness Council, cases, they provide funding that groups deserve to be considered noted that it has always worked to So what can economic develop- are pushing to make sure that all makes inner city programs possi- charitable nonprofits? help “disconnected populations,” ment groups do to spark major job programs emerging from the con- ble. Matthew Rossman doesn’t think such as women and minorities. creation in the urban core? versation are inclusive. For instance, in October, a group so. And both organizations could ar- For one, they need to form deep Those conversations are influ- of students from Cleveland’s John In a 2014 research paper called gue that they help local companies relationships with other minority encing how JumpStart and other lo- Adams High School toured a Solon “Trickle Down Charity,” the Case that are at a disadvantage because business associations, according to Western Reserve University law most venture capital firms are cal economic development groups factory owned by Swagelok, which Darrin Redus Sr., who led Jump- professor argues that many eco- based on the coasts. approach inclusion. So are the fun- makes valves, fittings and other Start’s economic inclusion efforts nomic development groups should Those activities make their cas- ders of those groups, Martin said. parts for fluid systems. In the from 2006 through mid 2013. Those not be able to qualify as 501(c)(3) es stronger, Rossman said. He “I don’t think we ever have a con- process, they met Leo Adams, who networks are full of people who nonprofits. praised local economic develop- versation with a funder where it’s is black and grew up near John could become employees, CEOs, That means they’re considered ment groups for ramping up their not brought up,” she said. Adams. He told them about how he investors and advisers for compa- charities in the eyes of the Internal efforts to help people who live in became a supervisor at Swagelok — nies that could create jobs in the ur- and how the company helped him Revenue Service, which allows Northeast Ohio’s inner cities (see Core competency ban core. And when they get in- them to receive tax-deductible do- adjacent story). But he added that earn his bachelor’s degree. volved, they’ll inspire their nations. they should try to make sure each Creating jobs in the suburbs is The Cleveland Foundation colleagues to lend a hand. Rossman argues that many eco- business they help will result in important, according to Fund pres- helped Magnet cover the cost of “They become part of the solu- nomic development groups across jobs or some direct benefit for the ident Brad Whitehead. But he ar- that trip and others like it. It’s also tion,” he said. the country shouldn’t be consid- people who need the most help. gues that it’s more important to helping Magnet bring a program The Greater Cleveland Partner- ered charities. As examples, he “I don’t think they are there quite create jobs in Northeast Ohio’s core that connects high school students ship is working on that. mentions Cleveland’s JumpStart yet,” he said. cities — especially “middle-skill” with paid manufacturing intern- Inspired by how JumpStart and and a St. Louis-based biomedical He cited an IRS legal memo jobs that pay enough to support ships to Cleveland. other local economic development incubator, which provides some of from 1990. The memo (General families. Plus, Magnet also has been work- groups team up to help startup com- the same functions as Cleveland’s Counsel Memorandum 39883) was “Any job is a good job, but some ing with more companies in poor panies, GCP’s Commission on Eco- BioEnterprise. used to decide whether the IRS jobs are better than others,” White- inner city neighborhoods because nomic Inclusion is forming an over- Traditionally, JumpStart and should give 501(c)(3) status to an head said. of its work with the Cleveland lapping sister network that will focus BioEnterprise have focused mainly unnamed economic development This issue affects everyone in Foundation and the Fund for Our on making sure that minority-owned on providing assistance to high- group formed to help businesses Northeast Ohio, even people who Economic Future, according to businesses can get the help they tech companies, such as software in a depressed part of the country. live and work in the suburbs, Greg Krizman, senior director of need from the organization that’s developers and medical device The memo said the group would Whitehead said. The whole region marketing at Magnet. best suited to provide it, Hall said. makers. Rossman said many of the not be considered charitable “be- will suffer if its core cities suffer, he “It is certainly on radar screens The group, which at the moment jobs those companies create go to cause it encourages private busi- said. Urban poverty forces taxpay- around here, no question,” Kriz- consists of nine organizations, people who have college degrees ness development while only inci- ers outside the city to pay for more man said. launched a pilot project involving — people who don’t typically need dentally furthering social welfare social services. Plus, creating jobs in Other economic development four minority-led companies in De- charity. purposes.” the core reduces suburban sprawl, groups are putting more emphasis cember. BioEnterprise didn’t provide a However, the memo does not which means taxpayers don’t have on economic inclusion, too. For in- But no matter how effective eco- counterargument, but here’s one it carry the weight of law, and the to keep building more roads and stance, BioEnterprise is trying to nomic development groups are, it could use: In addition to economic IRS has not enforced it, Rossman sewers. figure out how to help high school will take a long time to repair the re- development, its mission includes said. — Chuck Soder “It’s not only the right thing to do and undergraduate college stu- gion’s inner cities, according to Re- — it’s the economically sensible dents get into bioscience careers. dus, who now consults with other thing to do,” Whitehead said. Team NEO, which focuses on busi- cities on how to make their econom- The Fund and the Cleveland ness attraction, recently received a ic development efforts inclusive. Foundation don’t force economic Cleveland Foundation grant that “What has taken generations NORTHEAST OHIO LAGS BEHIND development groups to follow their it’s using to attract more site selec- upon generations to build is not go- lead. But they do inform them tors to the city. ing to get fixed overnight,” he said. The number of people employed And for the most part, the num- in the city of Cleveland fell by 7.4% ber of jobs actually based in North- from 2009 to 2013, while most of east Ohio’s suburbs grew from GET DAILY NEWS ALERTS FROM CRAIN’S the country was recovering from 2000 to 2010, while the number the recession, according to house- based in the region’s four core REGISTER FOR FREE E-MAIL ALERTS AND RECEIVE: hold surveys conducted by the cities shrank by 2% to 3%, accord- THE MORNING ROUNDUP: in the health care industry. Published Tuesday. U.S. Census Bureau. ing to a study by the Brookings In- The day’s business news from Ohio’s daily papers That rate, which excludes people stitution. MANUFACTURING REPORT: A weekly guide who aren’t looking for work, grew Nationally, the trend started to BREAKING NEWS ALERTS to Northeast Ohio’s manufacturing sector. by 2% in the suburbs during that reverse itself between 2007 and DAILY HEADLINES: Crain’s-produced news and blog Published every other Wednesday. period, according to an analysis of 2011, but Cleveland didn’t entirely items from the day SMALL BUSINESS REPORT: A weekly guide the statistics conducted by the close the gap, according to a third REAL ESTATE REPORT: A weekly guide to real estate to small business news. Published Thursday. Fund for Our Economic Future. The study by City Observatory, an Ore- news. Published Monday. same trend appears in Akron, gon-based think tank sponsored by SHALE AND ENERGY REPORT: A weekly guide Youngstown and Canton, though the Knight Foundation. HEALTH CARE REPORT: A weekly guide of changes to the energy industry. Published Friday. the stats aren’t quite as extreme. — Chuck Soder CRAINSCLEVELAND.COM/REGISTER REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: Denise Donaldson E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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24 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 2 - 8, 2015 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS The name ‘Bumbrella’ work with retailers and wholesale the Bum- The linkup with Conway will help better brella, though none have placed orders yet. serve growing businesses looking to expand FEBRUARY 23 - MARCH 1 won’t slip your mind She has spoken with a few, and she will be operations, allowing Silverlode to tap into A dress that left Tara Gallagher feeling a selling the product online to start. She’s Conway’s resources, McAndrew said. “Con- The big story: Bendix Commercial Vehicle little more exposed than she expected was been taking pre-orders, which she expects way can refer (clients) to us,” Weitzner said. Systems is staying in Northeast Ohio, though it’s the inspiration she needed to start her own to ship near the end of March. “The wider we can cast a net, the better we leaving its longtime Elyria headquarters. The company, CiCi Soleil Ltd. in Bay Village Gallagher already has plans to expand the are.” — Jay Miller company, which has about 500 workers in Elyr- Gallagher had skipped the slip when get- styles and colors offered — right now, the ia, said it will “construct a new headquarters in ting ready for a funeral in May 2012 — but it $48 slips come in two styles and three colors This program’s goals Northeast Ohio, expected to be within a 20-mile turned out that her dress was a bit translu- — and she has ideas for other product lines radius of its current Elyria location.” Bendix, cent in the sun. After spending the day with in which to expand. are on the money which makes safety and braking system tech- her jacket on, Gallagher scoured the market — Rachel Abbey McCafferty Area nonprofits and Charter One Bank nologies for commercial vehicles, did not identi- for a shorter, more modern slip that wasn’t are joining forces in an effort to provide fi- fy where the new headquarters will be built. It restrictive like shapewear. When she came Cleveland consultant nancial counseling to Clevelanders via new said the date for groundbreaking for the new up empty handed, she decided to make her Community Financial Centers. headquarters “has not yet been finalized and is own, and by that October, she had signed a aims to load up on projects The Charter One Foundation is teaming contingent on final approvals from state and lo- contract with someone specializing in fash- Cleveland-based Silverlode Consulting up with Cleveland Neighborhood Progress cal entities.” ion production in New York. “I’m always has formed a partnership with Conway Inc., and other partners to launch roving financial looking for a solution to a problem,” Gal- an Atlanta publishing, consulting and mar- centers offering advice on management of That settles lagher said. keting firm targeting economic develop- personal finances. Other sponsors include it: Akron-based And the solution to the slip situation was ment agencies and the site selection indus- the city of Cleveland, Cuyahoga Community Goodyear Tire & the Bumbrella — a half-slip with attached try. College, Enterprise Community Partners and Rubber Co. underwear to keep it from riding up or slid- Silverlode will be Conway’s official site Neighborhood Housing Services. agreed to pay $16 ing around. The product is lightweight, Gal- consulting partner in the United States. Sil- Financial service managers with the million to settle charges by the U.S. Securities lagher said, and not restrictive like verlode principal Steve Weitzner said he and Community Financial Centers will work and Exchange Commission that it violated the shapewear. She had heard that women were partner Dennis McAndrew will retain own- one-on-one with people, offering guidance Foreign Corrupt Practices Act. According to the developing medical issues from wearing too ership of the consultancy and will remain in on budgeting, paying down debt and build- commission, Goodyear subsidiaries “paid bribes constrictive undergarments, and wanted to Cleveland. He said Conway will help expand ing good credit, among other areas. to land tire sales in Kenya and Angola.” The SEC offer a product that encourages women to Silverlode’s reach. Rather than be housed in one location, said Goodyear “failed to prevent or detect more be comfortable in their own skin. A site selection consultant assists a busi- the program connects financial advisers than $3.2 million in bribes during a four-year pe- “If something’s uncomfortable, I won’t ness looking to expand by sifting through with employers through workplace pro- riod” at the subsidiaries in question. The alleged wear it,” she said. data like workforce availability and tax in- grams. bribes were usually paid to the employees of pri- The former stay-at-home mom of three centives in various communities and ana- The Cleveland Public Library is the first vate companies, government-owned entities or children didn’t have any experience in run- lyzing possible sites for a new plant or office. anchor institution to adopt the service for its more than 450 employees. A formal an- other local authorities and were recorded as le- ning a business — she had experience in ad- Conway, which operates Site Selection mag- vertising and had studied medicine — but nouncement of the program will be held at gitimate business expenses. azine and its related website and databases, everything just came together. is a major point of contact for economic de- 10:30 a.m. on Tuesday, March 3, at the li- The products are being made by a small brary’s main branch at 325 Superior Ave. 50 shades of orange: The Cleveland velopment professionals and expanding company in China. Gallagher is looking to businesses. — Jeremy Nobile Browns, after much anticipation, unveiled a new logo — and it looks a lot like the old one, but with a more vibrant orange. The team promises that the next big unveiling — the first look at the team’s new uniforms — will be much more rad- WHAT’S NEW BEST OF THE BLOGS ical. On Feb. 24, the Browns teased their uni- Excerpts from recent blog entries of the trucking and logistics company, forms — which, after two years of meetings and on CrainsCleveland.com. according to people familiar with the consultation with the NFL and Nike, will be un- matter.” veiled April 14 during an event at the Cleveland Can’t win ’em all Goldman Sachs Group Inc.’s private Convention Center — by showing off a new pri- equity arm and Centerbridge Partners LP mary logo and an updated look to celebrate the LeBron James own a controlling stake in the company, 30th anniversary of the Dawg Pound. See more in dominates the The Journal reported, and they “may as Talk on the Web, Page 11. NBA in a lot of soon as next month begin soliciting bids categories, includ- for Kenan while simultaneously prepar- Born to run: Former Ohio Gov. Ted Strickland ing global jersey ing it for an IPO.” wants back into political life. Strickland an- sales. The price would be big. Sources told nounced that he will run for the U.S. Senate seat But the Chinese The Journal that Kenan could fetch up to currently held by Sen. Rob Portman, R-Cincin- market is another $2 billion, including debt, in a sale. The nati. He’s the second Democrat in the race, as matter, as company had debt outstanding of about Cincinnati City Councilman P.G. Sittenfeld, 30, Bloomberg re- $880 million as of Sept. 30, according to James declared his candidacy for the Senate seat in Jan- ported. data from Moody’s Investors Service. uary. Assuming Sittenfeld remains in the race COMPANY: Combi Packaging Systems “Kobe Bryant that now includes a Democrat with built-in has the best-selling basketball jersey in statewide name recognition, the Democrats will LLC, Canton China this season,” according to the Early look at 2016 have a generational battle on their hands, as news service. “His enduring popularity The Washington Post updated its rank- PRODUCT: RCE Robotic Random Case in the country, outselling worldwide Strickland is 73 and would be 75 by Election Day ings of the 10 most competitive Senate NBA jersey leader LeBron James, comes in 2016. Erector races in 2016, and Ohio’s contest be- even after the 36-year-old star for the Combi, a provider of customized end-of-line tween U.S. Sen. Rob Portman and a De- bottom-dwelling Los Angeles Lakers suf- Deal takes flight: Cleveland-based aircraft packaging equipment, said it’s collaborating on mocrat to be named later was No. 7. fered a season-ending shoulder injury the new product with Motion Controls Robotics Of the 10 states considered the most parts maker TransDigm Group Inc. agreed to last month. But none of that bad news buy the Telair Cargo Group of aerospace busi- of Fremont, Ohio, a provider of robotic automa- ripe for a party takeover, “eight are held tion products to the industries including plastics, has damaged his popularity in China. nesses from AAR Corp. for about $725 million in Globally, James has been No. 1 in jer- by Republicans — including seven that cash. TransDigm expects to finance the acquisi- food and beverage, and building and construc- President Obama won in 2008 and six tion materials. sey sales each year since 2012. For this tion through existing cash on hand and possible season, he’s followed by Golden State’s that he won in 2012,” the paper noted. use of its existing revolving credit facility. The “Increased global competition is driving lean- But many of those seats are held by er operations in today’s manufacturing facili- Stephen Curry, Oklahoma City’s Kevin Telair Cargo Group is comprised of Telair Eu- relatively strong incumbents, including ties,” said John Fisher, president and CEO of Durant, Bryant and Chicago’s Derrick rope, Telair U.S. and Nordisk Aviation Products. Portman. Combi, in a news release. “Today, robots are Rose. Here’s how The Post saw the Ohio Telair’s annual revenues are about $300 million, playing a bigger role for case packing and palletiz- But in China, James accounts for only race, just before former Gov. Ted Strick- more than 80% of which comes from the com- ing so it was natural for us to include case erect- the sixth-best-selling jersey, behind, in land declared he’s running: mercial aerospace market. ing into these systems.” order, Bryant, Rose, Curry, Portland’s The contrast in Democratic candidate He said the new RCE Robotic Random Case Damian Lillard and Durant. Settling into place: Beachwood Place Mall’s Erector combined a FANUC six-axis robot with James’ Cleveland Cavaliers teammate, options here is striking. On one hand, owner bagged a major acquisition in Beach- multiple case magazines and a bottom flap fold- Kyrie Irving, is No. 9 on the China jersey there is Cincinnati City Council member wood: the adjoining, financially distressed La er with an integrated 3M tape head. sales list. P.G. Sittenfeld, a 30-year-old up-and- Place Fashion Center specialty mall. The pur- The system “is ideal for fulfillment centers and Irving didn’t make the global list. comer who is in the race. On the other is chase gives Chicago-based General Growth contract packagers who will realize great savings Ted Strickland, the 73-year-old former Properties Inc. control of the La Place building in eliminating costly downtime of changeovers The more the merrier governor and House member who is, de- and surrounding parking lot on the southeast and solve ergonomic issues by removing manu- pending on whom you believe, either run- Northeast Ohio could be poised to add corner of Cedar Road and Richmond Road. The al, repetitive tasks,” Fisher said. ning or still thinking about it. Conven- another public company. Beachwood mall at 26300 Cedar Road occupies He said the new robotic case erector also can tional wisdom suggests that Strickland The Wall Street Journal reported that land east of LaPlace on Cedar and south of “easily incorporate technology to assign, verify or would be the stronger candidate, al- the majority owners of North Canton- LaPlace on Richmond. track lot or serialization numbers to cases.” though his long record in Ohio politics For information, visit www.combi.com and based Kenan Advantage Group Inc. “are might be more of a burden than Democ- www.motioncontrolsrobotics.com. exploring a sale or initial public offering rats believe. 20150302-NEWS--27-NAT-CCI-CL_-- 2/25/2015 1:42 PM Page 1

NEW NAME. SAME INCREDIBLE OFFERS.

Mercedes-Benz of North Olmsted Airport Infiniti Infiniti of Akron Infiniti of Beachwood

2014 Mercedes-Benz $ CLA250 4-Door Coupe 299 2015THE ALL-NEW Q50 $309 Per month lease for 36 months. $3,093 due at signing. ($1,999 down pa uisition fee, $299 fi rst payment) ALL-WHEEL DRIVE

$30,925 MSRP, 7-Speed Dual-Clutch Transmission, 2.0L Turbo Inline-4 Engine with 208HP, Bluetooth®, mbrace2™, Sport Seats, * Per month lease for 39 months, now ONLY $1,999 due at signing. Collision Prevention Assist, ATTENTION ASSIST®, Three Driving MSRP $40,885 Modes

Infiniti of Akron (I-77 and Arlington Road on the Green Auto Mile.) Mercedes-Benz of North Olmsted 3332 South Arlington Road InfinitiofAkron.com 888-445-9592 mbohio.com Airport Infiniti (Just seconds off I-480, Exit 12 to Brookpark Road.) 28450 Lorain Road . 888-450-8064 . 13940 Brookpark Road AirportInfiniti.com 866-477-6991

2014 Mercedes-Benz CLA250 4-Door Coupe advertised lease rate based on a gross capitalized cost of $30,905. Includes destination Infiniti of Beachwood NEW LOCATION charge and optional sport package which includes 7-Speed Dual-Clutch Transmission, 2.0L Turbo Inline-4 Engine with 208HP, (Conveniently located near Chagrin Blvd. and Enterprise Parkway, right off 271.) Bluetooth®, mbrace2™, Sport Seats, Collision Prevention Assist, ATTENTION ASSIST®, Three Driving Modes. Excludes title, taxes, 25900 Central Parkway InfinitiofBeachwood.com 888-706-8170 registration and documentary service charge. Total monthly payments equal $10,764. Cash due at signing includes $1,999 capitalized cost reduction, $795 acquisition fee, and fi rst month’s lease payment of $299. Total payments equal $13,558. Subject to credit approval. * Tax, $250 documentary fee, and license plates fees additional. 10,000 allowable miles per year, $0.25 thereafter. No security deposit required. 10,000 miles per year, $.25 thereafter. Lessee may be liable for wear and tear. Lease offer expires 3/31/15. No security deposit required, Q50—MSRP $40,885. With approved credit thru IFS. In-stock units only or while Options shown. Not all options available in the U.S. © Mercedes-Benz USA, LLC. supplies last. Disposition fee due at term. of lease. See participating retailer for details. Offer ends 3/31/15.

BUICK GMC OF BEACHWOOD BUICK GMC OF BEACHWOOD

2015 BUICK ENCORE AWD 2015 GMC TERRAIN SLE-1 FWD $249 $187 PER MONTH LEASE FOR 39 MONTHS** PER MONTH LEASE FOR 39 MONTHS** $1,500 due at signing. $1,500 due at signing.

MSRP $26,610. Stock # F093553. Tax, title, doc MSRP $27,485. Stock # F274006. Tax, title, doc and license fees extra. 10,000 miles per year, and license fees extra. 10,000 miles per year, $0.25 per mile thereafter. With approved credit. $0.25 per mile thereafter. With approved credit.

BUICK GMC OF BEACHWOOD BUICK GMC OF BEACHWOOD 25975 Central Parkway 25975 Central Parkway 877-216-9440 bgob.com 877-216-9440 bgob.com

*TAX, TITLE, DOC AND LICENSE FEES EXTRA. **ALL LEASES INCLUDE FIRST PAYMENT AND ACQUISITION FEE. CERTAIN RESTRICTIONS APPLY. FOR WELL-QUALIFIED *TAX, TITLE, DOC AND LICENSE FEES EXTRA. **ALL LEASES INCLUDE FIRST PAYMENT AND ACQUISITION FEE. CERTAIN RESTRICTIONS APPLY. FOR WELL-QUALIFIED 25/MILE 25/MILE THEREAFTER. CREDIT APPROVAL WITH PRIMARY LENDER REQUIRED. OPTION TO PURCHASE A T LEASE SIGNING. THEREAFTER. CREDIT APPROVAL WITH PRIMARY LENDER REQUIRED. OPTION TO PURCHASE A T LEASE SIGNING. NOT AV Y NOT AV Y

Volkswagen of Hudson Airport Acura

2015 Volkswagen BRAND NEW 2015 Jetta S Automatic Acura RDX AWD $ $189/mo* 349 *Per month lease for 36 months. PER MONTH LEASE FOR 36 MONTHS $189 due at signing. $0 DUE AT SIGNING 10,000 miles per year. $.20 per mile thereafter. MSRP $18,145. Tax, title and document fees additional. With approved credit. 10,000 miles per year, $0.20 per mile thereafter. Prices and payments exclude tax, title, registration and documentary In-stock vehicles only. Offer expires March 31, 2015. service charge. No security deposit. MSRP $36,015. 2 or more to choose from. Available on in-stock vehicles only. With approved Tier 1 credit. Subject to bank approval. Lessee may be liable for wear and tear. Offer expires 3/31/15.

Volkswagen of Hudson Airport Acura 5715 Darrow Rd., Hudson 888-728-9938 14080 Brookpark Road vwofhudson.com 888-789-6765 airportacura.com

+ On select models, with approved credit. While supplies last. 20150302-NEWS--28-NAT-CCI-CL_-- 2/25/2015 1:45 PM Page 1

LOCATED WHERE YOU ARE.®

Mercedes-Benz of North Olmsted Mercedes-Benz of Burlington Airport Mini 28450 Lorain Road 80 Cambridge Street 14070 Brookpark Road (440) 716-2700 (781) 229-1600 (216) 245-0294 Airport mbohio.com mbob.com airportmini.com North Olmsted Burlington MA

AMG of North Olmsted AMG of Burlington Airport Acura 28450 Lorain Road 80 Cambridge Street 14080 Brookpark Road North Olmsted (440) 716-2700 Burlington MA (781) 229-1600 (216) 676-5400 mbohio.com mbob.com Airport airportacura.com

smart Center of North Olmsted Sprinter of Burlington Airport Infi niti 28450 Lorain Road 80 Cambridge Street 13940 Brookpark Road (440) 716-2700 Burlington MA (781) 229-1600 (216) 676-0700 North Olmsted smartcenterofnortholmsted.com mbobsprinter.com Airport airportinfi niti.com

Sprinter of North Olmsted Rolls-Royce of Cleveland Infi niti of Beachwood 28595 Lorain Road 28300 Lorain Road 25900 Central Parkway North Olmsted (440) 716-2700 (440) 716-2000 (216) 475-4800 northolmstedsprinter.com rollsroycecleveland.com Beachwood infi nitiofbeachwood.com Cleveland

Porsche of North Olmsted Aston Martin Cleveland Infi niti of Akron 28400 Lorain Road 28300 Lorain Road 3332 S. Arlington Road (440) 716-2720 Cleveland (440) 716-2000 (330) 644-1800 Akron North Olmsted clevelandporsche.com astonmartincleveland.com infi nitiofakron.com

Mercedes-Benz of Fort Mitchell Lotus of Cleveland Airport Nissan 2100 Dixie Highway 28300 Lorain Rd 13930 Brookpark Road (859) 331-1500 (440) 716-2000 (440) 884-7800 mbfm.com Cleveland lotusofcleveland.com Airport airportnissancle.com Fort Mitchell KY

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Sprinter of Fort Mitchell Volkswagen of Hudson Buick GMC of Beachwood 2100 Dixie Highway 5715 Darrow Road 25975 Central Parkway Fort Mitchell KY (859) 331-1500 (330) 342-7000 Beachwood (216) 514-2700 fortmitchellsprinter.com Hudson vwofhudson.com bgob.com