June 20 - Crain`s Cleveland Business

Transcription

20160620-NEWS--1-NAT-CCI-CL_--
6/17/2016
4:08 PM
Page 1
VOL. 37, NO. 25
JUNE 20 - 26, 2016
Focus
Business of Life
Prep and parochial
schools Pages 15-21
Edgewater Yacht Club
continues to cruise
Customers say there’s
“nothing quite like sailing
on Lake Erie.” Page 23
CLEVELAND BUSINESS
The List
Region’s highest paid CEOs
Page 27
TRANSPORTATION
Airport renovations
touch down in time
By ALISON GRANT
clbfreelancer@@crain.com
A whirlwind of construction and
remodeling, hospitality bookings
and security planning is almost complete at what will be the threshold for
thousands of visitors arriving for the
Republican National Convention —
Northeast Ohio’s airports.
Cleveland Hopkins International
Airport takes the wraps off a $42 million terminal modernization next
week that has a spruced-up façade, a
ticketing level with more natural
light and a reconfigured Checkpoint
B to help smooth the flow of passengers through security.
Private jet and charter passengers
at Burke Lakefront Airport will find a
new, $6.7 million terminal with a
roomy passenger lounge and bistro.
Cuyahoga County Airport in Richmond Heights has moved a tenant to
free up 3,000 square feet for reception and conference rooms.
Akron-Canton Airport cut the ribbon on a $2.7 million ticket wing overhaul, Lost Nation Airport in Lake
County redecorated its lobby and
resurfaced two runways, and
Youngstown-Warren Regional Airport
repainted and retiled its terminal.
The catalyst for the upgrades, airport officials said, is the July 18-21
Republican convention that planners estimate will draw about 50,000
delegates, media and others to
Cleveland.
The Cleveland 2016 Host Committee, a nonprofit responsible for organizing and funding the convention, is busy training squads of
volunteers to make the local airport
experience harmonious for visitors.
Over three arrival and two departure days at Hopkins, 200 ambassadors will be stationed on concourses
and at tables stocked with maps and
guides. Their mission: Give a warm
welcome and sendoff, and information and directions to travelers, but
EDUCATION
Mesh with success
SEE AIRPORT, PAGE 5
TECHNOLOGY
StreamLink Software
raises $10 million
By CHUCK SODER
[email protected]
@ChuckSoder
Why did First Analysis invest in
StreamLink Software?
Demand for grant management
software is on the rise — and the
Cleveland company has what it takes
to capitalize on that trend, according
to Corey Greendale, managing director at First Analysis in Chicago.
StreamLink recently raised $10
million from First Analysis and a
long list of existing investors.
The money will help StreamLink
ramp up its sales and product devel-
opment efforts at a critical time: New
rules and regulations are pushing
government agencies and other organizations to keep better track of
the grants that they award and receive.
First Analysis wanted to take advantage of that trend, but it wasn’t ready to
invest in StreamLink when it first
learned about the company a few years
ago. At the time, StreamLink hadn’t yet
generated enough customer traction
to fit First Analysis’ investment strategy. So the firm put the Cleveland company into the “potentially-interestingbut-come-back-to-it-later bucket,”
Greendale said.
SEE STREAMLINK, PAGE 25
Entire contents © 2016 by Crain Communications Inc.
Industry-school pairings
give students head start
By RACHEL ABBEY McCAFFERTY
[email protected]
@ramccafferty
Students’ exposure to the medical professions at Cleveland’s new
Lincoln-West School of Science &
Health won’t be limited to the occasional field trip or job shadowing
experience. Instead, they’ll be
spending time on The MetroHealth
System’s main campus every week.
The school, which the school
board must still approve, will allow
students to be exposed to the hundreds of jobs available in the health
care industry. Students will still take
traditional high school courses at
Lincoln-West on West 30th Street,
but will also spend time in lectures,
lab work and more on the hospital’s
campus off West 25th Street. Cleveland Metropolitan School District
CEO Eric Gordon described it as a
“year-long experience of trying on
the doctor’s coat.”
While embedding a high school
campus at a hospital could be contentious in most districts, Cleveland
has a history of working with industry partners to expose students to
skilled professions — and those relationships are only deepening.
Take MC2 STEM High School,
which opened in 2008 and really
“bloomed” because of industry
partnerships, said head of school
Feowyn MacKinnon. Instead of a
traditional school building, classes
are held at locations like the Great
Lakes Science Center in the ninth
grade or General Electric’s Nela
Park campus in 10th.
GE was the school’s first company partner — it helped develop the
curriculum, provided mentors and
tutors and gave them space rentfree, MacKinnon said. The company relied on the school for education expertise, while the school
relied on GE for insight into the industry. The benefit to GE is a possible future employment pipeline.
Much has been made of the impending manufacturing skills gap,
and these partnerships are one way
the industry has been involved.
SEE INDUSTRY, PAGE 22
6/17/2016
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6/17/2016
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Presented by Truline Industries and University Hospitals, the Ronald House Pro-Am Golf Tournament is the longestrunning and most successful fundraising event in the history of the Ronald McDonald House of Cleveland. Over
the past 36 years, the tournament has raised more than $3.8 million to support the Ronald McDonald House’s
mission of keeping families close when they need it most. Led by committee chairman Andy McCartney, this
tournament is made possible by the dedication of our committee members, sponsors, and golf professionals.
PRESENTING SPONSORS
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UNDERWRITING SPONSORS
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American Consolidated
Industries, Inc.
BlueBridge Networks
Bowden Manufacturing
Carnegie Investment Counsel
The Crawford Group
Davey Tree Expert Company
Dawson Insurance, Inc.
Deloitte
Elk & Elk
Flight Options
Garson Johnson
HC Murray Group
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Millwood, Inc.
Moen, Inc.
NSK Industries
PwC
Resilience Capital Partners
Resource Strategies, Inc.
Ronald McDonald House
Charities of Northeastern Ohio
The Sherwin-Williams Company
ShurTech Brands LLC
The Spyglass Group
Talmer Bank and Trust
Taylor Oswald
Wellspring Financial Advisors
Zenith Systems, LLC
{)FeXBecU× IMG and Suburban Press
Our heartfelt thanks to the PGA and LPGA tour professionals and the NOPGA local resident
professionals for their commitment to the Ronald House Pro-Am event.
TOUR PROFESSIONALS:
Zac Blair, Bud Cauley, Jason Dufner, Jason Gore, Trevor Immelman, Jason Kokrak,
Nancy Lopez, Peter Malnati, Larry Nelson, Carl Pettersson, Dicky Pride, Dave Stockton, Hal Sutton, Kyle Thompson
and Harold Varner
RESIDENT PROFESSIONALS: Dominic Antenucci, Mark Bixler, Jennifer Creech, Matt
Creech, Mark Evans, Jimmy Hanlin, Michael Kernicki, Jim Logue, Rob Moss, David Mottice,
Drew Pierson, Bill Reilly, John Sico, Mark Sierak, Tom Waitrovich, and Charlie Wood
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home-away-from-home for families of children receiving medical treatment at area hospitals. In addition to the 55-room
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McDonald Family Rooms at Cleveland Clinic Children’s, Fairview Hospital, MetroHealth Medical Center, and UH Rainbow
Babies & Children’s. RMH relies on the generosity of the local community to provide support and services to the more than
100,000 individuals it serves annually. ƵƵƵţųĵĘÏĬåƴåĬ±ĺÚţŅųč
PAGE 4
6/17/2016
2:57 PM
Page 1
z JUNE 20 - 26, 2016 z CRAIN’S CLEVELAND BUSINESS
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The strength of downtown Cleveland’s apartment market is spilling
across the city’s Innerbelt to MidTown Cleveland, where plans have
taken root to transform two empty
1950-vintage office buildings to
housing.
The larger of the projects is a plan
by Inspirion Group of Cleveland to
convert a vacant, eight-floor building at 3101 Euclid Ave. to residential
use with the addition of 90 apartments in the structure, including
adding a ninth-floor penthouse. It’s
an estimated $12 million project, according to Mark Schildhouse, Inspirion executive vice president and
general counsel.
Inspirion on April 7 shelled out
$1.75 million to buy the building
from Crystal Kingdom Development
LLC, according to Cuyahoga County
land records. Inspirion will benefit
from the prior owner’s efforts to
ready the building for redevelopment by removing old offices and asbestos as it gutted the structure,
Schildhouse said.
The group plans to receive federal
historic tax credits and seek Ohio
Historic Preservation Tax Credits to
help finance the conversion, which
will turn the building into market
rate — but affordable — apartments
at a lower price point than downtown apartments, Schildhouse said.
The group intends to seek the highly
competitive state tax credits later
this year, but is taking the first step
by asking the Cleveland Landmarks
Commission to certify the structure
as a city landmark at its meeting on
Thursday, June 23.
Inspirion hopes to have the building ready to open by 2018, Schildhouse said.
“Our goal is not to compete with
the central business district but offer
a nice alternative,” he said. “We’d
like to attract the teaching population from Cleveland State and health
Inspirion Group plans to convert the vacant building at 3101 Euclid
Ave. into an apartment complex. (Stan Bullard)
care professionals from University
Circle. The nice thing is that we have
a stop for the HealthLine (bus-rapid
transit) in front of the building.”
Schildhouse has experience in
readying real estate developments
from serving as general counsel to
Willoughby-based K&D Group, a
prolific converter of downtown office buildings to apartments. He said
Inspirion’s principals are business
people with a bug for real estate
ownership who want to move into
development.
Inspirion’s principals are Lemma
Getachew and Guenet Indale, a husband and wife who both emigrated
at different times from Ethiopia to
the United States. Getachew owns
Central RX Pharmacy of Cleveland.
Indale owns Rx Home Health
Provider, which provides nurses and
other health care services to homes,
Schildhouse said.
Inspirion also is a partner in the
conversion of the four-story office
building at 2828 Euclid Ave. to 50
apartments by Innerbelt Lofts LLC, a
development group that includes Gordon Priemer, a longtime real estate
owner and developer who owns the
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adjoining Innerbelt Office Building.
Contractors are converting the
2828 Euclid building to residential,
Schildhouse said. That project is not
seeking historic tax credits because
it required opening up one of the
building’s walls to add windows.
Both projects have been recently
hatched. Innerbelt Lofts last September purchased the vacant building from the United Food & Commercial Workers for $775,000,
according to Cuyahoga County land
records.
Priemer was traveling last week,
according to an assistant, and did
not return three calls from Crain’s
Cleveland Business.
Jeff Epstein, executive director of
the MidTown Cleveland nonprofit
development group, said he is excited about both proposals because
they are the first additional residential development in the area in
decades. Repairs of the 3101 Euclid
building are especially valuable, Epstein said, because of the poor condition of its exterior.
Although MidTown is typically
thought of as a commercial district,
Epstein said it has 2,000 residents.
Location is working to MidTown’s
advantage in a quest to become
home to a mixture of property types.
“There is tremendous development pressure here — from the west
from downtown Cleveland where
available apartments are scarce as
well as from the east from University Circle,” Epstein said.
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6/17/2016
4:06 PM
Page 1
CRAIN’S CLEVELAND BUSINESS z JUNE 20 - 26, 2016 z PAGE 5
AIRPORT
CONTINUED FROM PAGE 1
keep political views out of the equation.
The host committee is working
with the Downtown Cleveland Alliance and Cuyahoga Arts and Culture on entertainment in the terminal, but it has yet to release details.
For the 2012 Republican convention,
Tampa International Airport serenaded visitors with a middle school
jazz group, a steel drum band and a
barbershop quartet.
“My advice? Have fun,” said Tampa
airport spokeswoman Janet Zink. “Engage people on social media, especially Twitter. The convention is a great
opportunity to showcase your airport.”
The Hopkins renovation adds uncluttered directional signs in place of
the former plum-colored signs that
could be confusing to follow. The airport erected canopies over its premium Red Lot and economy Blue Lot
and covered walkways into the terminal. Behind the scenes, a $27 million
consolidated baggage system will be
under construction until 2017.
A fortified taxi fleet outside the terminal will help get the crush of convention passengers to hotels. Hopkins has added a second taxi lane
and will be able to provide 350 to 400
cab rides an hour, said Fred Szabo,
interim director of the Cleveland Airport System. Individual delegations
are scheduling hundreds of charter
buses, hired-driver limos and sedans
known as “black cars.” Hopkins is
calibrating ground transportation
using hour-by-hour passenger
counts from the airlines.
The Republican Party’s Committee
on Arrangements is in charge of shuttling delegates between hotels and the
main convention site at Quicken
Loans Arena. Committee spokesman
Dave O’Neil said a fleet of 350 charter
buses in Cleveland will move 12,000
people in the first 40 minutes following each convention session.
Airlines at Hopkins are adding
flights and seating capacity temporarily. United will have about 2,000 extra
seats, with more in-bound 737s from
San Francisco, Houston, Washington
and Chicago, and will use a bigger jet
for a flight in from Newark. Post-RNC,
United has added two flights to
Philadelphia for journalists headed directly to the Democratic convention
there, and extra flights to Chicago,
Houston and Washington.
American is swapping out 50-seat
regional jets for 76-seaters on its new
Cleveland-Washington route during
the week of the RNC.
Presumptive presidential nominee
Donald Trump uses a six-passenger
Cessna jet and a Boeing 757 airliner
known as “Trump Force One” for
travel. His campaign staff has reserved
space at both Burke and Hopkins for
the planes, Szabo said.
The Transportation Security Administration’s stepped-up role during
the convention will be apparent in the
number of blue-shirted officers and
dog teams at Hopkins and Burke.
Don Barker, TSA’s federal security
director for Ohio, said the agency is
“beefing up almost all of our assets
because of our counterterrorism
mission.”
TSA also wants to avoid having
frustrated travelers stuck in long security lines. The agency has been under fierce criticism for airport security waits that have stretched in
some cases to hours, causing travelers to miss flights. More than 700
new screeners nationwide are supposed to be in place this month.
For the Republican convention,
TSA is adding “a significant number of
additional screeners.” Barker said,
and dropping in extra baggage
screening equipment during peak periods. Those are projected to be July
21 through about July 25, when conventioneers are leaving in droves.
“The incoming’s not so big a deal
Are you an individual
with $10 million or more
seeking advice?
for us,” TSA spokesman Mark Howell said. “It’s the outgoing that’s a
bear, at least for the delegates.”
TSA’s security force will include
VIPR (Visible Intermodal Prevention
and Response) teams. They’re made
up of federal air marshals working
with local law enforcement and
meant to provide a visible deterrent.
VIPR teams also will be at RTA stations and on the Red Line rapid leaving the airport. They will help the
U.S. Secret Service with screenings at
The Q and at a July 17 reception at
the Rock and Roll Hall of Fame.
TSA also is increasing the number
of undercover behavior detection officers watching for suspicious behavior.
Eight additional canine teams will
be at Hopkins. Passengers standing
in line can expect one of the bombsniffing dogs to pass by. The agency
avoids German shepherds because
some people find them intimidating
and relies on retrievers and other
“floppy-eared” breeds.
Douglas Laird, a former security
director for Northwest Airlines, said
dog teams may give passengers a
sense of safety, but he doubts they
make much difference. “People are
not going to come through a checkpoint with an assembled (improvised explosive device),” he said.
Some 300 general aviation aircraft
are expected to bring delegates and
dignitaries to the convention, with
many of those planes landing at
Burke.
Flights headed there that haven’t
been screened on takeoff will have to
fly into Youngstown or Akron “gateway” airports, where passengers and
planes must clear TSA security before continuing on.
Planes carrying delegates lodging
in Summit County or nearby may
stick to the Akron airport. The airport is prepared to park as many as
100 planes, and is making sure the
terminal sparkles.
“We take very seriously our re-
A sleek new facade is part
of the $42 million renovation
at Hopkins. (David Kordalski)
sponsibility to make a great first impression. So we are fluffing and buffing,” said Kristie Van Auken, senior
vice president.
At Burke, the host committee has
lined up 160 volunteer greeters.
The airport got a taste of what to
expect on its airfield during the GOP
presidential debate last August.
James Price, manager of Landmark
Aviation, Burke’s fuel and hangar
services provider, has said 100 aircraft were packed onto the tarmac
during the event.
This time, temporary flight restrictions that the Federal Aviation Administration will put in place on the
eve of the convention are expected
to leave Burke off limits to takeoffs
and landings during the event.
That restriction and the sheer number of private aircraft will make for
spillover activity at Cuyahoga County
Airport, and possibly Lost Nation Airport in Willoughby and Lorain County Regional Airport in Elyria.
“We’re hoping for a lot of traffic,”
said Michael Toman, director of operations at Lost Nation, which is 15 nautical miles from The Q. “We’ve put a
lot of work into getting things ready.”
Perhaps no airport is positioned to
elevate its profile during the convention more than the county airport. It
could end up landing and overnighting dozens, if not more than 100, private jets.
The airport will be outside the restricted zone that requires the Akron
or Youngstown security stop because the FAA allowed a “cutout” —
a 3-mile bite out of a 10-mile airspace cookie — so the airport can
operate without restrictions.
Aaron Thayer, general manager of
the Cleveland Jet Center, the airport’s fuel, maintenance and overall
services provider, said that status
could mean a surge in business.
“It’s an unknown quantity what the
(Akron and Youngstown) security delay could involve,” he said. “If on one
of those aircraft something is found,
that changes the whole game. We’ll be
the closest airport with uninterrupted
access to the convention.”
Thayer and his staff began preparing for the RNC two years ago, when
Cleveland was named as the convention city. They visited a counterpart
aeronautical services company at
Tampa International Airport, and
they checked out the Augusta Regional Airport, which helps manage
the battalion of private jets flying in
for the Masters Golf Tournament.
“Cleveland is going to be on a
world stage for this week,” Thayer
said. “That initial good first impression is one we’re going to make.”
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PAGE 6
6/17/2016
2:57 PM
Page 1
SOLD - 68,639 SF Industrial Building
892 Callendar Boulevard, Painesville
Akron DFS biz has big
endorser, unique plans
By KEVIN KLEPS
[email protected]
@KevinKleps
For all your commercial real estate
needs, please contact:
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216.861.5379
[email protected]
HannaCRE.com
An Akron family is betting that its
unique approach to daily fantasy
sports will gain a large following in
an industry that has had a tumultuous last nine months.
And in its first real marketing push,
fanDaction, which is led by Al Ross
and his son, Brian, recently agreed to
an endorsement deal with Pete Rose
— a Major League Baseball legend
who has been banned since 1989 for
gambling on the game.
Al and Brian Ross founded fanDaction with their nephew, Michael BenShimon, in April 2014. (BenShimon, a
Las Vegas investment banker, keeps
track of the company’s finances, but
isn’t involved in the day-to-day operations.) Al Ross said fanDaction aimed
to really get going in the spring of
2015, when it announced a deal with
famed jockey Gary Stevens to promote its horse racing games prior to
the Kentucky Derby.
“We just weren’t ready,” Ross admits now.
FanDaction — which offers NFL,
MLB, NBA, NHL and horse racing
competitions on its website — took a
few months to regroup before its DFS
games were ready in November 2015.
“I’ll be honest,” Ross said. “We
didn’t have anything to make someone want to come to business with
us. You have to have something,
even if you have the best variety of
games, bar none. You have to have
the right team to market yourself
properly.”
The 57-year-old Ross, a serial entrepreneur who says he started an
alarm company at 20, believes that’s
in place now with Rose pumping up
their product. Discussions with
baseball’s all-time hits leader began
about 20 months ago, but at the time
Rose was still holding out hope that
he would be reinstated by MLB.
When MLB commissioner Rob
Manfred upheld Rose’s lifetime ban
in December, the deal with Rose
started to come to fruition.
“We put him off until Mr. Manfred
made his decision,” Rose said of Al
Ross.
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There are hundreds of small DFS
companies, and each is fighting for
its life in an industry that has been
beset by lawsuits and state legislators who have said it violates laws
against gambling.
FanDaction is confident it can
stand apart because of a more unique
variety of online competitions, which
includes contests that split NFL and
MLB games into first and second
halves. For example, a fantasy participant can join an NFL contest in
which the winner is determined at
halftime, then join another competition for the second half. FanDaction
also has contests in which participants can choose players without being restricted by a salary cap, which
Ross believes is a better fit for those
who know the sport much better than
they do the data.
The deal with Rose calls for the 75year-old to make “Pete’s Picks” for
fanDaction’s “Pick 5” contests. That
game, which doesn’t have a salary
cap, gives participants the chance to
use Rose’s five player selections as a
The fanDaction kiosks could be in
as many as five local bars in the
next week. (Contributed photo)
challenge to go up against another
participant, or face a DFS player who
is willing to risk a few bucks (or considerably more) on Rose’s picks.
And yes, Rose said he will be making the selections himself.
“I think the work that you put into
it is watching the (MLB) games on a
daily basis,” Rose said of his fanDaction preparation. “It doesn’t take me
long the night before to make my
picks and send them to Al. It’s not
that time-consuming if you’re on top
of it. I have my favorite players, and
I know the players who are hot and
cold at the moment.”
Rose made his first fanDaction selections on Saturday, June 11. Ross
admits the site doesn’t have a lot of
participants yet, but he thinks the
opportunity to put some money on
or against Rose’s selections could be
a selling point.
“The larger we get, the more customers we get that challenge him
daily,” Ross said of Rose.
Kiosks are part of plan
Every DFS service would probably
say its games are the most enjoyable
and/or the most unique. But fanDaction, according to several DFS
experts with whom Crain’s spoke,
does have a one-of-a-kind service it
just started rolling out.
Ross partnered with Jerry Bishop,
whose Superior Games used to make
kiosks for internet gaming, to produce DFS registration kiosks that will
be placed in sports bars around the
country. Bishop said the kiosks,
which are 21 inches wide and stand
four feet, provide a simple service to
bar patrons who want to participate
in a fanDaction contest.
“This is strictly a registration device,” Bishop said.
Any DFS player can play from the
comforts of home or on the go via
their mobile device. The biggest benefit of the kiosk, though, is it allows a
bar or a group of bars to hold a private, in-person contest — one for
which the players have to sign up on
location.
All deposits and payouts are done
digitally via fanDaction, as is the case
with any DFS provider. But the kiosks
give the bars the chance to run a short
contest for those on hand — a firsthalf NFL contest, for instance — or
compete against other participating
bars in a series of competitions.
“People don’t think about kiosks
in a sports bar because all they think
about is online,” Ross said. “My best
way to ever attract a gambler is in a
sports bar.”
The first fanDaction kiosk, made by
Bishop’s Akron-based Sports Fantasy
Today LLC, was scheduled to be delivered to Whiskey Ranch CAK, located
near the Akron/Canton Airport, on
Friday, June 17. Bishop said he has 50
kiosks in stock, and he can make
many more. He’s already got dealers
lined up in six states, counting Ohio.
As many as four or five Northeast
Ohio locations could have the kiosks
within the next week, he said.
Ross said the kiosks cost $2,200,
an amount that is paid by an entrepreneur who wants to cut a deal with
an establishment that wants to host
in-person DFS contests. The entrepreneur gets a cut of the proceeds
produced by the competition, and
he or she can then share some of the
revenue with the bar, depending on
the agreement the parties strike.
Bishop and Ross say the most obvious benefit for a bar is the kiosks
are a marketing tool to bring in customers.
As far as anyone knows, they’re
perfectly legal.
Jessica Franks, the director of
communications for the Ohio Casino Control Commission, hadn’t
heard of a DFS kiosk until she was
asked about fanDaction by Crain’s.
Franks said that, as the state gambling laws are currently written, DFS
doesn’t “really fit neatly into the definition of casino gaming.”
But, she added, unless legislators
decide to regulate DFS at the state
level, the industry will continue to
exist in a gray area.
“How is it ultimately defined?
That’s a question we’re waiting to be
answered,” Franks said.
Geoffrey Rapp, the associate dean
for academic affairs at the University of Toledo College of Law, said DFS
kiosks seem like “a natural evolution
from video poker terminals and lottery ticket vending machines.” He
warned, however, that “physical
kiosks are much more susceptible to
regulatory interference.”
And if DFS ends up being labeled as
gambling by state or federal legislators,
“there may be concerns for the holders
of liquor licenses” at which the kiosks
are housed, Rapp said.
Ross isn’t worried.
“My decision is a simple decision,” he said. “Either a state is operating under the federal law (which
classifies DFS as a game of skill), or
they don’t believe it and want to
challenge it like some of the attorney
generals did. If there’s a state that
challenges it, we won’t do business
in that state.”
Rose, the baseball legend who
knows a thing or two about scrutiny,
made sure to point out that Major
League Baseball has an ownership
stake in DraftKings, which, along with
FanDuel, is one of the DFS industry’s
two under-fire heavyweights.
“Don’t forget, the commissioner
said it’s not gambling,” Rose said.
6/17/2016
4:22 PM
Page 1
Flats cost overruns call for reworked loans
By STAN BULLARD
[email protected]
@CrainRltywriter
Keeping the now-rocking Flats
East Bank Neighborhood rolling
through the fits and starts of the
Great Recession was tough, but a city
of Cleveland-led drive to restructure
government loans that aided the
project show it was even tougher
than known at the time.
The $750 million project razed old
buildings along Old River Road facing the Cuyahoga River from Main
Avenue to the Port of Cleveland and
took one of the oldest parts of Cleveland back to bare ground in 2008.
Then most work ground to a stop in
the financial crisis. Financing the
project was changed to get it started
again in 2012.
Two phases of the project have
since transformed the east side of
the river adjoining downtown with
the 2013 opening of the Aloft Hotel
and Ernst & Young Office Tower and,
over the last year, the Flats at East
Bank apartments, restaurants and a
public promenade on the riverside.
However, Cleveland officials say a
$30 million cost overrun on the project prompted complicated legislation that Cleveland City Council
adopted on May 18 that authorizes
the Jackson administration to rework terms of almost $34 million in
city loans to the project.
The largest is a $30 million U.S.
Department of Housing and Urban
Two of the three phases have been completed in the Flats East Bank Neighborhood. (Stan Bullard)
Development 108 Loan the city received that the project has paid
down to $27 million. Under the
workout, the city has asked HUD to
reduce a 10%, or $3 million, debt reserve to $2 million and allow that
money to be used to make payments
on the loan as well as to allow the developers to refinance the loan.
Tracey Nichols, Cleveland economic development director, said in
an interview last Thursday, June 15,
that she hopes to hear soon about
HUD’s decision on the change.
The other provisions include
changes in city loans from programs
such as the Vacant Property Initiative and Core Cities loans that developer Scott Wolstein, a principal in
Flats East Bank, agreed to pay in advance at a discounted rate. Those
loans total about $6 million due in
2029 through 2036 that Wolstein will
repay for $2.3 million by the end of
2016. Wolstein, his mother Iris Wolstein and Fairmount Partners developed Flats East Bank.
The workout allows Flats East
Bank to refinance its other loans on
the project, Nichols said, and gives
the developers more breathing room
on the repayments. She said the refinancing also should allow Flats East
Bank’s developers to reduce the
number of loans from 34 sources to
a more manageable number.
Wolstein said in an email that the
refinancing is too complicated to
discuss and is partially due to reserves originally set up to typically
earn 5% interest not earning interest
in the current low-interest rate environment. He also blamed what the
city described as the “overruns” on
provisions the developers added to
make public areas of the project
more attractive.
He declined to be more specific.
Wolstein also would not agree to an
interview on the refinancing or respond to additional emails.
Nichols said several factors inflated costs on the project, many related to the brownfield conditions.
Warehouses had been built on the
site in the 1800s that covered over
rail lines, petroleum product and
coal gasification tanks that Flats East
Bank had to remove.
“Because federal funds were involved, it also became an archeological site,” Nichols said. “They were
photographed before they were removed” and dirt was replaced.
Water also presented challenges
for the project on the river near Lake
Erie.
During construction, Flats East
Bank found the bulkheads next to
the river near Main Avenue were failing and had to be replaced, Nichols
said. New real estate developments
also have to provide for storm water
runoff, she said, which was accomplished by putting a detention basin
under the project’s streets. That is
costlier than putting it above ground
— but wise in an urban area where
land is dear near the water.
Nichols said reworking the financing is justified because two of the
three phases of the project are finished — risk is greatest and so are precautions for construction unknowns
— and the project is priceless.
“Overall, the project is great for
the city, from the perspective of jobs
and from the perspective of the waterfront,” she said.
A document Nichols provided to
Cleveland City Council shows the jobs
at the project are almost as big a surprise as the sharp appearance of the
long public boardwalk next to the river. The city says the developer reports
2,016 jobs were created at the project
as of Dec. 31 — exceeding a commitment to create 1,620 jobs.
PAGE 8
6/16/2016
3:35 PM
Page 1
Akron gears up ‘slowly but surely’ for
By JUDY STRINGER
To Greater Akron, the intensifying
buzz during this final run-up to the
Republication National Convention
is still just that – buzz.
In about one month, 50,000 visitors are expected to flock to Cleveland for the four-day RNC, some of
them spilling over into nearby communities. Locally, however, little is
known about how big of an impact
the convention might have 35 miles
south of ground zero, Quicken Loans
Arena, according to local tourism
and business leaders.
Some Akron organizations say
they will have all hands on deck during the third week of July, while others are planning to operate “business as usual.”
“Right now we have staff scheduled to go about normal daily business,” said Jason Shoffstall, general
manager of Crave restaurant in
downtown Akron. “If it gets really
busy, our staff is able to accommodate above and beyond what we may
get normally.”
There is no doubt that Akron will
see RNC-fueled visits, according to
convention spokesman Dave O’Neil.
Although O’Neil did not provide any
specific estimates, he said a “sizable
number” of delegates and media will
be housed in and around the Rubber
City.
“No city, other than Cleveland, in
Northeast Ohio will experience more
benefit than Akron,” he said. “If you
look at hotels in the Akron area, you can
assume that most of them will be playing a role in this summer’s convention.
What’s great about that is a lot of the
events that the delegations will be doing will take place in those hotels.”
Akron/Summit Convention and
Visitors Bureau Vice President Jim Mahon said local hotels were part of the
initial bid to win the convention, with Summit
County committing 70%
of its hotel capacity, or
more than 15,000 room nights, to the
RNC host group.
Those bodies in beds should
translate into several thousand
minds to entertain and stomachs to
feed as well. How and when the appetite for Akron food and entertainment will surface appears to be the
great unknown.
“We have been told by Destination Cleveland and others to have
modest expectations as far as how
much time people will have to move
around,” Mahon said. “We would
love to think those (RNC visitors) in
Cleveland will come down to shop
and see an attraction. How likely that
is, however, is what they want us to
be reasonable or realistic about.”
Mahon and his team have focused
on a “geo-targeted” campaign, dropping off visitors’ guides in downtown
hotels as well as those in surrounding
neighborhoods like Cuyahoga Falls
and Fairlawn. The goal is to provide a
range of quick dining and entertainment opportunities for the media and
delegates based in and near Akron.
“We want to make sure those people get out and don’t just sit in their
hotel,” he said.
The bureau also has worked closely with the city of Akron and neighboring municipalities to ensure latenight options for guests “wired” after
prime-time convention activities, he
said. Several bars and restaurants
countywide took the opportunity to
apply for temporary liquor license
extensions, some as late as 4 a.m.
Stan Hywet Hall & Gardens hopes to attract out-of-town visitors during the RNC. (Contributed photo)
Entertaining visitors
Meanwhile, Greater Akron tourist
attractions, such as Stan Hywet Hall
& Gardens and the Cuyahoga Valley
Scenic Railroad, are gearing up —
encouraged by the possibility RNC
visitors may have daytime hours to
spare with official events taking
place in the evening.
The CVSR, for instance, will pro-
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mote lower prices for its all-day-pass
coach seats, said Kim GillanShafron, senior director of marketing, strategy and customer experience for the railroad. Prices were
lowered to $15, from $18, earlier this
year as part of the National Park Service’s centennial celebration. In addition, CVSR is using RNC-sanctioned digital and social channels
and other outlets, such as a website
portal organized by the Akron Beacon Journal and the Akron/Summit
CVB, to highlight its bike-aboard
program as a wellness option for
convention visitors.
The scenic railroad is also one of
the few local organizations with concrete plans to host special delegate
events. Most area hotels and hospitality amenities have yet to land
RNC-specific events. Event planning
6/16/2016
3:52 PM
Page 1
r RNC visitors
“No city, other
than Cleveland, in
Northeast Ohio
will experience
more benefit than
Akron.”
— Dave O’Neil, Republican
convention spokesman
has been delayed somewhat, Mahon
explained, because not all of the delegates and media have been assigned hotels and are awaiting assignments to make nearby plans.
According to Gillan-Shafron, two
RNC groups have reserved train
tours, and she expects more to sign
on.
“We have a number that are
waiting (to finalize plans.) Their
schedules are fairly fluid right
now,” she said, adding that the reserved tours will take place outside
of CVSR’s regular train runs to
avoid limiting access, “especially
that week when so many visitors
will be here. We want to make sure
they have as much access to Cuyahoga Valley National Park as they
can.”
Bliss in spotlight
This month, the Summit County
Historical Society of Akron in collaboration with the University of Akron
and historian Victor Fleischer will
unveil a Ray Bliss exhibit on the
fourth floor of the Ohio Building in
the heart of Akron’s business district.
They hope the exhibit will attract
convention-goers and highlight the
city’s role in politics. An important
figure in the 1960s and ’70s Republican Party, Bliss was an Akron native
who served as chairman of the Republican National Committee from
1965 to 1969. Fleischer is providing
photographs, letters and other Bliss
memorabilia. The historical society
is accenting the display with clothing
from the time period.
“When you see a display, you
might venture over. But one thing we
have found for sure — with exhibits
at the library and elsewhere — is that
when we start putting clothing in
there, people are drawn to it like
flies,” said Leianne Neff Heppner,
president and CEO of the Summit
County Historical Society.
Gailmarie Fort, vice president of
outreach and communications at
Stan Hywet, said she has fielded a
few special event inquires from incoming RNC groups, but — like her
colleagues at CVSR and the historical society — feels the media spotlight that comes with the convention is the best opportunity to
highlight her venue and the Akron
area as a whole.
“We’d love to get some media here
and hope that would be a catalyst for
future tourism all over the Akron
area,” Fort said.
In the end, Mahon added, it does
not really matter if the mid-July visitors are delegates, media or part of the
RNC operations and support crews.
Every set of eyes is one more chance
for Akron to claim the big prize.
“Really what we want is to set the
stage for some return visits,” he said.
“Everybody is slowly but surely getting mobilized and getting things in
place to do that.”
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20160620-NEWS--10-NAT-CCI-CL_--
PAGE 10
6/16/2016
4:50 PM
Page 1
Opinion
From the education beat
Education every
college kid needs
Editorial
One of a kind
When Republicans come to Cleveland next month to nominate a presidential candidate, they’ll see a city shaped, to a
large degree, by George Voinovich. They’d do well to emulate
the characteristics that made Voinovich, 79, who died unexpectedly in his sleep on June 12 at his Collinwood home, such
a towering figure in Cleveland and Ohio politics: his civility,
modesty, independence and dedication to doing the many
jobs he was elected to do.
Voinovich’s public career started as a member of the state
Legislature and, over more than four decades, led him to become the mayor of Cleveland, the governor of Ohio and a
two-term U.S. senator.
Those years as mayor, 1979 to 1989, were critical to changing not just national perceptions about Cleveland, but the
city’s fiscal position and its physical landscape. Voinovich
was instrumental in putting together a plan to dig Cleveland
out of its 1978 financial default, as eight local banks, with the
help of a state guarantee, in October 1980, lent Cleveland
$36.2 million. He forged a working relationship with thenCity Council president George Forbes, a Democrat. Before
Voinovich left office, the city’s bonds returned to investment
grade, laying the groundwork for prudent management that
exists in the city to this day under Mayor Frank Jackson and
has helped Cleveland avoid the fiscal calamities of Detroit
and Chicago.
Voinovich also entered into the local lexicon the muchused phrase “public-private partnership” by convincing
business people and the philanthropic community to bring
their expertise to City Hall and to reinvest in Cleveland.
This was no easy task in late-’70s/early-’80s Cleveland, but
it led companies, including BP America and KeyCorp, to establish their headquarters downtown and serve as anchors
of Public Square, which itself is sporting a new look this summer. He also laid the groundwork for civic projects such as
the Rock and Roll Hall of Fame and the Gateway sports complex of Progressive Field and Quicken Loans Arena — all key
venues for the Republican National Convention and related
events in July.
In a 2010 Crain’s profile of Voinovich, Richard Pogue, a
partner and later managing partner of the Jones Day law firm
and a key figure in public-private cooperation, said of
Voinovich, “He’s low key in his style, but his determination
is fierce. Once he made up his mind, he was hard to stop.”
Indeed he was.
Even after retiring from the Senate in 2010, he stayed active politically and spoke out on matters including fiscal policy — true to his frugal personal nature, Voinovich was a
fierce advocate for budget sanity in every position he held —
and the Republican Party’s presumed presidential nominee
this year, Donald Trump, whom he called a “phony” and a
“con artist.”
Voinovich had the respect of people in both parties, which,
sadly, stands out as somewhat remarkable these days. Sen.
Sherrod Brown, a Democrat, last week described Voinovich
as “a man of strong conviction” who was “always willing to
listen to the other side of an argument and put what he believed was best for our state and country ahead of partisan
politics.” Sen. Rob Portman said Voinovich was “a man of integrity who was effective at bringing people together to
achieve meaningful results.”
The Republican Party that Voinovich served with distinction stands ready to come to Cleveland and nominate someone whose commitment to the hard work of government is
questionable, and whose ability to reach out to all Americans
seems nonexistent. George Voinovich represented the best
of his party. We hope those concerned about its current direction live up to his legacy and speak out for a more productive future.
PUBLISHER AND EDITOR: Elizabeth McIntyre
([email protected])
CLEVELAND BUSINESS
MANAGING EDITOR: Scott Suttell ([email protected])
SECTIONS EDITOR: Timothy Magaw ([email protected])
When students first step foot on Oberlin College’s campus,
they’re required to take part in a peer-to-peer workshop on
consent and relationships.
It’s important to empower students to make their campus
safer, to teach them to hold one another to higher standards,
said Meredith Raimondo, Title IX coordinator for the school.
After all, faculty and staff aren’t often around when things go
wrong.
Sexual assaults on campus are, unfortunately, nothing new.
Nor are they rare. In 2014, the last year for
which the federal government has available
data, more than 180 rapes were reported on
Ohio’s post-secondary campuses.
It was certainly an issue when I was in college 10 years ago, but it was one discussed behind closed doors. I can’t remember a single
instance of an authority figure talking to me
about what rape, consent or sexual harassRachel Abbey
ment looked like in daily life.
McCafferty
Thankfully, it sounds like that at least has
changed at local schools.
Schools such as Cleveland State University have incoming
students take an online course on consent and sexual violence.
The University of Akron has begun teaching students about bystander intervention, which arms students with ways to step in
safely if they see someone in a potentially risky situation. In recent years, Kent State University developed a new office to
serve as a single point of entry for students who report sexual
assault. The Ohio Department of Higher Education even has an
entire initiative — Changing Campus Culture — focused on improving the climate on the state’s campuses of higher learning.
The schools are talking to students about rape, sexual harassment, abusive relationships and stalking.
While there’s an ongoing debate about whether campuses
are an appropriate place to address sexual assault, these problems are about more than just student safety. It’s also an issue
of academic success.
Raimondo said the number one reason students come forward about trauma is because they’ve hit an academic wall. As
colleges work to retain and graduate students, the stress of sexual violence can present a big hurdle.
High-profile cases like the one in Stanford that made headlines earlier this spring, when a former student was given a light
sentence after being convicted of sexual assault, bring the issue of rape on campus into the spotlight. The idea that such a
horrific act could happen in a place of learning and growth
rightfully angers people. And it’s often explained away by the
party culture prevalent on many college campuses.
But the truth is, these incidents can happen anywhere, at any
time, and colleges and universities have a unique opportunity
to educate students about what healthy relationships look like
and how to step in when something feels wrong. And these are
lessons they can take out into the world after they graduate.
At Crain’s, my charge is to write about the business of higher education: the administrative decisions, the budget allocations and everything else that keeps the gears running at the region’s colleges and universities. But there are always stories
hovering on the edge of the beat. Sexual violence on campus is
one of those stories, and it casts a big shadow.
But after talking to colleges this week, I’m heartened by what
I heard. It sounds like local colleges are doing a better job of listening to students and working to give them the tools they need
to change the culture. And Jennifer O’Connell, director of the
Office of Sexual and Relationship Violence Support Services at
Kent State, said today’s students aren’t likely to back down
when their needs aren’t being met.
“This generation isn’t afraid to speak out,” O’Connell said.
Let’s hope she’s right.
WRITE US: Crain’s welcomes responses from readers. Letters should be as
brief as possible and may be edited. Send letters to Crain’s Cleveland
Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by
emailing [email protected]. Please include your complete name and city from
which you are writing, and a telephone number for fact-checking purposes.
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20160620-NEWS--11-NAT-CCI-CL_--
6/16/2016
2:26 PM
Page 1
Stockbroker fraud?
Bad investment advice?
Web Talk
Re: RTA rate hikes, service cuts
I’m not a native Clevelander and cannot speak to the
history of the RTA on rates, routes, etc. I can say that
Cleveland is now our home and we do know that having
an effective, safe and reliable mass transit system is an
asset to a city that is staring at an exciting future.
For two-plus years, I have been a regular commuter
from Warrensville to Flats East Bank, one of the vibrant
areas of the Cleveland renaissance. Parroting a phrase
that I hear all the time, “The trains are great … when
they work.” Winter and early spring commuting is an
adventure. When asked, drivers and other RTA staffers
whisper their complaints and cite the reasons for poor
service — no parts, old trains, bad management, trains
come last, rather not say, not my place, etc.
The trap that we have all fallen into is accepting the
status quo. To protect the interests of all taxpayers RTA
workers and commuters, it’s time to have an
“independent” board of review and accountability.
Asking the fox how things are going at the henhouse
isn’t working very well.
If folks agree with this, how can this get done?
— Rick Defaut
I can’t remember how many times I have seen RTA
modify or cut service over the years when it is clear that
there is a segment of Cuyahoga County that is grossly
underserved — the southern area.
Today, I would never have an occasion to ride because
of where I live and where I work. On the short term,
there would be a huge cost to build a light rail line that
moves up from Brecksville or Broadview Heights, or
perhaps even extend the rail service from Warrensville
southbound to the county line near Walton Hills, but
that’s the direction the service needs to strongly
consider if it is to remain viable. — Melvin Gaines
Unfortunately, the RTA is falling into the cost trap when it
should be looking at how to enhance its value
proposition to the region through a mix of smart
expansion as well as rightsizing of underutilized lanes
and routes. Why not leverage existing capacity with
smarter routes to the 40,000 open (jobs) that the Fund
For Our Economic Future has identified could be filled if
not for physical access barriers, like adequate and
consistent transportation to the job site? I would think,
assuming the FFEF’s analysis is correct, this would
generate significant demand and avoid the budget gap
and rate hike altogether. — Joe Glick
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Re: Great Lakes Brewing Co.’s new CEO
Delighted to see two REALLY nice guys (founders Pat
and Dan Conway) doing well, sticking by their brand, but
also opening up the possibilities with the company’s first
CEO, Bill Boor. Cheers! — Peter Toomey CBC
Re: Sports commission’s victories
What an amazing journey for the Greater Cleveland
Sports Commission.
I remember the reputation of the Cleveland of years
ago. This (ability to bring big sports events to Northeast
Ohio) is the story of a real-life transformation of
Cleveland into a very attractive American destination
city. — Lowell Nerenberg
Crain’s is honored in pair
of journalism competitions
Crain’s Cleveland Business was
honored recently with 12 awards
in statewide and international
journalism awards competitions.
In the Press Club of Cleveland
2016 All Ohio Excellence in Journalism Awards, assistant editor/sports
reporter Kevin Kleps won a firstplace award in the digital media
competition. His Sports Business
blog took first place in the “blogs”
category. The judges in their comments recognized his “good writing, clear connection with readers
and knowledge of topic.”
The work of former art director
Rebecca R. Markovitz was recognized in five categories in the
Press Club Awards, including a
first place in the “spread or multiple page design” category for
tabloid publications for “Building
a Better Board,” which explored
the composition of governing
boards in Northeast Ohio.
Markovitz also won two second-place awards in the “single
page design” category for her
“Book of Lists” cover and in the
“business publications/covers”
category for her front-page design
on the Northeast Ohio food industry. In addition, she received two
“Best in Ohio” awards: a secondplace award for illustrations and a
third-place award for page design.
Editorial
cartoonist
Rich
Williams received second place in
Call a trusted law firm
who knows how to
navigate the world
of investment claims.
the “single cartoon” category in the
section of the competition that recognized visuals for all publications.
Rich won recognition for a cartoon
about FirstEnergy.
In the “Business Publications”
competition, Crain’s staff won third
place in the “public service/investigative” category for its exploration
of the most connected business
people in Northeast Ohio. In addition, reporters Dan Shingler and
Rachel Abbey McCafferty were recognized with a third-place award in
the “features/trends” category for
their story on who will lead the
manufacturing industry when the
Baby Boomer generation retires.
Crain’s reporter Chuck Soder
received third place for technology writing in the Open competition, in which all Ohio publications compete, for his story about
the success rate of acquisitions for
local tech companies.
The Press Club awards were announced June 3 in a ceremony at
the House of Blues in downtown
Cleveland.
Crain’s also was honored with
two awards in the annual Editorial Excellence Awards competition
conducted by the Alliance of Area
Business Publishers, an industry
group for regional business publications in North America, Canada
and Australia.
Markovitz won a gold award in
the “best front page” category for
newspapers for “The Right Mix”
about trends in the local food industry. Judges from the University of Missouri School of Journalism said Markovitz’s cover “was a
bold decision that creates a powerful impact. It is evident great
thought went into the design, the
shape and the text.”
AABP also recognized her work
with a bronze award for her use of
“photography/illustrations” for a
body of work throughout 2015.
The awards were presented at
the alliance’s summer conference,
which was held June 8-11 in Des
Moines, Iowa.
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PAGE 12
6/17/2016
5:09 PM
Page 1
Firm finds middle ground, preps for more
By JEREMY NOBILE
[email protected]
@JeremyNobile
Not long ago, Apple Growth Partners found itself in a precarious position.
The Akron-based accounting firm
was planning out the future of the
business when they noticed a debilitating talent gap. Staff was weighted
on either end with senior partners
poised for retirement and younger
staffers, but there wasn’t a solid
group of mid-level professionals
ready for aging partners to pass their
business on to.
Suddenly, the concept of growth
was less about strategy and more
about simply having the human capital to sustain any meaningful expansion.
Today, the firm is in the midst of
its most aggressive growth plan since
its founding more than 70 years ago
with a goal to double the business by
2020.
But it wasn’t always like this. Just
a few years back, that objective
wouldn’t have even been possible.
“It was a panic moment about
seven, eight years ago,” said chair-
man emeritus Dave Gaino. “How
were we going to sustain a firm with
these kinds of demographics?”
What created the talent gap is a
story of its own.
Degree programs for CPAs went
from four years to five as computer
sciences saw a growth in popularity, resulting in fewer students gravitating to the financial discipline.
The “brain drain” phenomenon
saw an exodus of top talent out of
places like Northeast Ohio to more
promising metros. All the while,
Big 4 firms excelled in siphoning
much of whatever talent was left,
leaving slim pickings for firm headhunters.
It was at that time that the “talent
wars,” as Gaino describes it, really
started to come to a head. The market for people seemed all but tapped.
So what was a small firm to do?
What happened next would be a
pivotal moment in the firm’s future.
Talent wars
The fight for the best people has
been, and continues to be, an ongoing challenge across the accounting
field. But when the well for mid-level talent began to run dry, AGP
looked internally, shifting priorities
to accelerating the development of
in-house professionals instead of
trying to preen them from the market.
The result was some rather innovative initiatives that have created the
platform for auspicious growth.
Headhunters couldn’t fill the gap.
So the firm put retirements on
hold. After all, clients wouldn’t be expected to stick around if they were
handed off to an inexperienced late
20-something, Gaino said.
Stan Apple, for example, a second
generation chairman now in his
mid-70s, is still with the company today.
They reduced billable hour requirements for those younger professionals, though, and tapped several for their Growth Acceleration
Program, an in-house initiative for
developing more managerial and
mid-level skills. Really, it marked a
doubling down in practicing what
they preach in terms of succession
planning the firm counsels clients
on.
Now, those professionals are completing their programs and are
readying to step into more responsibility, poised to take on the big
clients senior partners like Apple will
eventually have to leave behind.
Gaino, who in May formally
handed the chairman reins to
Charles Mullen, pegged that maturation of talent in-house as a top
priority before pursuing a leadership transition, which also marks a
bit of a restructuring of top executives.
The firm’s prior CEO, Harold
Gaar, left the firm last fall in what
Gaino described as a mutual and
amicable decision. Rather than fill
that specific role, AGP decided to return to prior management model
comprising a chairman and COO.
“Harold came on with a sales and
marketing background, so we elevated him to CEO,” Gaino said. “Where
we struggled with that was he wasn’t
a CPA … that made things challenging, and we hit a few bumps.”
Another initiative just begins with
this year.
Gaino said recruiting is beginning
now for a program that pairs AGP
with first- and second-year accounting students at the University of
Akron to offer discounted accounting services to emerging businesses
that wouldn’t otherwise be able to
afford those.
At first, Gaino said candidly, they
didn’t think the program would be
that meaningful for the firm itself.
“The first time we had that invite,
we said no,” Gaino said. “But then it
hit me: If I could hire freshmen and
sophomores in college for eight to 10
hours a week and have them do work
at a highly discounted rate for these
businesses, that’s going to help me
win the talent wars.”
“As a smaller firm, it’s hard to get
access to some of these people,” he
said, referencing the overall competition, particular with the largest
firms, both in the market at large and
on at colleges where CPA firms heavily recruit new people. “This will be a
great way to distinguish ourselves on
campus.”
Platform for growth
Business at AGP has ebbed and
flowed through the decades. The
firm, like most accounting outfits,
saw setbacks to revenue growth in
the wake of the recession. But business has come back as companies
themselves are seeing their own balance sheet growth.
With a renewed focus on talent
development both near and longterm, though, AGP has set sights on
nearly doubling in size by 2020,
which means achieving $20 million
in annual revenues and a staff of 160.
The talent issues truly needed addressed before strategic growth
plans made sense.
At about $12 million in annual
revenues right now, the firm is at an
“awkward” size, Gaino said. There
are economies of scale, particularly in back-office operations, that
come at $20 million. Plus, gaining
size is becoming more critical in an
already competitive and crowded
market here already shrinking
through acquisitions, including
several from companies located
outside Ohio that want a piece of
the action.
An acquisition or two will be necessary to realize those goals for AGP.
The firm’s last acquisition was in
2008 with Akron’s Brott, Mardis &
Co.
Any further mergers will be within
the Northeast Ohio market, Mullen
said, and have a niche specialty in
areas like real estate, construction
and advanced manufacturing that
are not only a large focus for AGP but
also the sectors targeted for the
strongest growth.
Times have certainly changed —
or at least priorities have.
“Twenty years ago, I was almost
solely focused on figuring out ways
to show a client that we care,” Gaino
said. “We were ignoring the people,
though. We’d grow some, lose people, then grow some, then lose people.”
“From a staffing perspective, it’s
taken us years and years to get it
right,” Mullen said. “But now that we
have these great things happening at
AGP, why not expand it?”
have been acquired by
a platform company formed by
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20160620-NEWS--13-NAT-CCI-CL_--
6/16/2016
4:25 PM
Page 1
Weston plan is belatedly picking up pace
By STAN BULLARD
[email protected]
@CrainRltywriter
Weston Inc., the realty developer
that floated plans for a community of
apartment buildings on a sea of parking lots near Cleveland’s Public
Square, is continuing to buy portions
of the block it did not already control.
Cuyahoga County land records
show Weston on May 20 paid local
ownership group FAI Inc. $3.6 million for a parking lot at 405 St. Clair
Ave. which is almost an acre in size.
In another transaction, through
1400 W. Third St. LLC, which lists in
state incorporation documents to
the Warrensville Heights address of
Weston’s corporate headquarters,
Weston gained control of another
parking lot at the northeast corner of
Frankfort Avenue and West Third
Street from the Elise Kirschenbaum
Trust on March 8.
That transfer does not show a purchase price. The nearly one-acre
parcel is also operated as a parking
lot.
The two acquisitions square off
the eastern end of the block needed
for a 23-story complex proposed last
When Weston first unveiled its plan last November, it said the vast
field of parking lots just west of Public Square would become a new
neighborhood. (Contributed photo)
fall by Weston and Citymark Capital
Development Co. of Cleveland. The
structure would be the first in a master plan for development of the
block, including parking lots that
Weston has owned for a decade
south of Frankfort.
Weston spokeswoman Sue Broadbent said in an email last Tuesday,
June 14, that it is “too premature” to
discuss what the purchases mean for
the project.
When Weston last November unveiled the proposal for the block
bounded by West Third and Sixth
streets and West St. Clair and Superior avenues, Weston CEO T.J. Asher
said the company expected soon to
control parcels it did not own. That
schedule has since unraveled.
The plan called for the first building to consist of an eight-story brick
structure at St. Clair and West Third
connected to a larger glass-walled
tower.
It would incorporate 352 suites,
parking for 390 cars and some service-oriented retail space. Weston
said it sought to build first on the
southeast corner of West Third and
St. Clair in order to capitalize on its
proximity to the established Warehouse District downtown neighbor-
hood.
Additional — and taller — towers
would go on lots Weston owns south
of Frankfort that abut Tower City
Center near Public Square in the future.
The Weston plan has not included
the headquarters of Stark Enterprises at 1350 W. Third St. on the northeast corner of the block, which Stark
has listed on the Ten-X.com website
for a July 11 auction with a starting
bid of $850,000.
Stark bought the building in 2007
when the firm was participating with
Weston in a joint development of the
block that never came to fruition.
The two parted ways in 2008.
Through a separate partnership,
Weston recently started converting
most of the Standard Building, 1370
Ontario St., from offices to apartments.
Construction crews are at work
on the site. Crews have installed
fenced walkways around the building to protect passersby as they
clean the structure’s terra cotta surface.
Broadbent did not respond to an
email and phone call last Thursday,
June 16, on the projected completion date for the Standard project.
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20160620-NEWS--14-NAT-CCI-CL_--
PAGE 14
6/17/2016
12:41 PM
Page 1
THE DISH: Lee Chilcote
Kombucha is local business’ recipe for expansion
Bearded Buch, a 2-year-old craft
food company that makes its own
kombucha, has just renovated a new
home at 4464 Broadview Road in
Cleveland’s Old Brooklyn neighborhood.
Kombucha is a fermented tea
that’s considered rich in probiotics
and antioxidants. It’s made by
adding a culture of bacteria and
yeast to a solution of tea, sugar and
sometimes fruit juice and other flavorings. The drink, which has long
been popular among alternative
health advocates, recently has hit
the mainstream with over $500 million in annual U.S. sales.
Bearded Buch has grown rapidly
since its launch in 2014 and now distributes bottles of kombucha to over
125 stores in Ohio. Yet it has outgrown its home base at Cleveland
Culinary Launch and Kitchen in the
Midtown neighborhood. The new
location will allow it to ramp up production from 600 gallons to 1,5002,000 gallons a month.
Jason Powers, director of marketing and development at Old Brooklyn
Community Development Corporation, said Bearded Buch is part of a
small crop of local food businesses
that have chosen Old Brooklyn as
their home. With the completion of a
new $10 million streetscape on Pearl
Road, as well as several major properties under rehabilitation, he said the
area is ripe for redevelopment.
“We have very good bones, but it’s
a big struggle to get businesses to
commit to being the first ones,” said
Powers during a walking tour. “We’re
basically stuck in this donut hole of
great homes with incredible value, but
we’re not a buzzy neighborhood. Yet
we’re a half mile from downtown.
Lee Chilcote is
a freelance
writer and
editor who
has written
for Vanity Fair,
Next City, Belt
and other
publications.
He is cofounder of Literary
Cleveland.
“Here, there’s an opportunity to
get in on the ground floor, like Ohio
City and Tremont before gentrification,” he added.
Unique area
Aaron Powell discovered kombucha after going on a health kick
and buying a bottle on a whim at a
store. He soon fell in love with it and
began experimenting with making it
at home. Eventually, after selling it
in small batches to family and
friends, he co-founded Bearded
Buch with his wife, Danielle. The
name stems from the fact that Powell has a bushy beard and the nickname for kombucha is “buch.”
Powell was drawn to Old Brooklyn
because of its affordability and tightly knit community. “We’ve always
really loved Old Brooklyn, especially the fact that it has its own downtown and is close to the zoo,” he
said. “It was the uniqueness of the
area, and also the building. I walked
in the front door and knew instantly
this is where we needed to be.”
Bearded Buch is moving into a single-story, 4,500-square-foot building
with an open, accessible floor plan,
garage and rear loading area. The
Aaron Powell, co-founder of Bearded Buch. (Lee Chilcote for Crain’s)
building was vacant and dilapidated
for years, but after nine months of
renovation, it will soon emerge transformed. It boasts an attractive retail
and office space in the front and a
spacious production, bottling and
warehousing area in the rear.
Powell is in the process of purchasing the building from the current owner through a land contract.
The city of Cleveland and the Economic and Community Development Institute (ECDI) have provid-
ed low-interest financing. “Most
banks want you to be in business
two years before they’ll even have a
conversation with you about lending,” said Powell.
Getting your weird on
He has become an evangelist of
kombucha as a healthy alternative
to soda and bottled juices. “Because
it’s fermented with yeast and bacteria in culture, it has a symbiotic relationship and builds up acids and en-
zymes and great things for your
body,” he said. “I tell people it’s a little sour, a little sweet, and lightly
carbonated. It doesn’t taste like anything else out there.”
Kombucha is still unfamiliar to
many people, while some have a negative perception of it and believe that
it tastes like vinegar. Yet Bearded
Buch takes advantage of its off-kilter
reputation in its marketing by inviting customers to “get weird” with
them. Powell believes the market for
kombucha will continue to grow.
“Kombucha right now is where
craft beer was 15 years ago,” he said.
“Back then, there were maybe 100
breweries, and now there are over
1,000.”
Currently, Bearded Buch has four
flavors: ginger snap, concord grape,
spiced elderberry and pink grapefruit. As part of its expansion, the
firm will add new flavors. Plans for
the retail space in the front of the
building are still in the early stages.
Powell cited the support of the local
food community in Cleveland as one
reason for the company’s rapid
growth. The company is one of several success stories, including Cleveland
Kraut, Six Shooter Coffee and Pope’s
Kitchen, that got their start at Cleveland Culinary Launch and Kitchen.
He also hopes to offer his product
on tap at more places this year. Currently, Bearded Buch is available at
Phoenix Coffee in Ohio City, Six
Shooter Coffee on Waterloo and
Scribbles Coffee in Kent.
Powell is glad to be done renovating the building and looks forward
to growing his company at its new
home in Old Brooklyn. “The food
community in Cleveland is amazing
and very welcoming,” he said.
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Page 1
Focus
PREP AND PAROCHIAL SCHOOLS
Q&A - P. 17 | HATHAWAY BROWN - P. 18 | FAIR TRADE - P. 20
Maybe they’ll put a
spell on your kid
Schools would like to charm
prospects earlier than ever
By TIMOTHY MAGAW
[email protected]
@timmagaw
P
otion making, transfiguration, and wandmaking aren’t typically part of Magnificat High School’s curriculum. After
all, the school prides itself on
the holistic development of its
students as they prepare for the real
world — and let’s face it, the proper
way to make a potion with eye of newt
isn’t an in-demand skill in today’s
economy.
But for a few days this summer, the
all-girls Catholic prep school in Rocky
River will transform itself into Magnificat’s School of Witchcraft for local
muggles in grades four through six. The
Harry Potter-based enrichment camp,
which has a waiting list, is just one of several new summer camp offerings at Magnificat
designed to get more young people on its campus — all
in hopes that they too one day will want to enroll at the
school.
Magnificat has developed programming for students
as young as first grade. Others include coding, cooking, printmaking and even an enrichment camp focused on Gregorian chants. Science, technology, engineering and math programming is also a major focus.
“We wanted to make sure students had access so to
our programming, faculty and staff and students at an
early age,” said Jenifer Hebda Halliday, Magificat’s
president. “If they can be on campus, get a feel for who
we are, get a feel what we’re about, they’ll want to be
future Blue Streaks.”
SEE CHARM, PAGE 16
Crain’s Cleveland Business photo illustration by David Kordalski
20160620-NEWS--16-NAT-CCI-CL_--
PAGE 16
6/16/2016
3:49 PM
Page 1
CHARM
Magnificat recently redesigned its summer camps. (Contributed photo)
The idea behind these camps that
are springing up at private high schools
around the country is to just make that
connection early — between the young
students and the schools’ campuses.
And as the competition between private schools increases, the earlier they
can get students thinking about where
they’d like to spend the four years before college, the better.
“Many of these schools have expansive campuses, but the community isn’t always terribly familiar with
CONGRATULATIONS CLASS OF 2016
them. We find that many times when
people come to campus they are
suddenly kind of surprised by what
they see and what some offer,” said
Myra McGovern, vice president of
media for the Washington, D.C.based National Association of Independent Schools.
She added, “The internet makes it
easier to find what’s out there, but it
makes it a more complex decision.
Schools are recognizing that by establishing relationships much earlier they
can really communicate much more
effectively about what they offer.”
Meanwhile, Holy Name High
School in Parma Heights partnered
with Classroom Antics, a company
in North Royalton that provides
tech-based summer camps in various settings. The camps, geared at
students between 7-13 years old, include video game design, Lego robotics, computer programming and
stop-motion animation.
“In third or fourth grade, they’re
just having fun,” said Ed McIntire,
Holy Name’s director of admissions.
“That’s what we want to promote to
them: Come have fun. If you’re doing stop motion animation or Lego
robotics, that starts a conversation
about how you had a great time at
Holy Name. That plants the seed.”
Nationally, private school enrollment in grades nine through 12 increased from about 1.2 million in 19951996 to a peak of 1.4 million in 2007-08,
according to the National Center for
Education Statistics. Since the recession, enrollment has fluctuated mildly
but over the next decade or so is expected to decrease by 13%, from 1.3
million to 1.1 million students.
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The reasons for the decline, experts
say, are many. Demographic trends
simply mean fewer students are ready
to fill the desks and rising tuition has
pushed some families toward public
and charter education. More specifically, the closure of Catholic K-8
schools across the country has dried
up what has traditionally been a primary recruitment pool.
Those challenges have led to sophisticated marketing campaigns —
not just in print and on TV, but online, particularly through various social media channels. However, in
many cases, the best marketing a
school can do is nurturing its relationship in the community, school
officials say.
“Our philosophy from an admissions standpoint is that we want to
build the strongest community pos-
“If you’re doing stop
motion animation or
Lego robotics, that
starts a conversation
about how you had a
great time at Holy
Name. That plants the
seed.”
— Ed McIntire, Holy Name director
of admissions
sible,” said KC McKenna, vice president of marketing and admission at
St. Edward High School in Lakewood. “That’s what students and
parents are looking for in a high
school experience.”
St. Ed’s, for one, offers an array of
summer programming for young
people. It offers enrichment camps
for seventh and eighth graders that
explore subjects such as robotics,
game design, math and creative
writing. The school also has a robust
selection of athletic camps. As for
the younger prospects, the school
maintains a Future Eagles club — a
free program where boys in 6th grade
and younger can get free Eagles swag
as well as free admission to St. Ed’s
home athletic events.
“That’s as much of an alumni program as anything,” McKenna said.
“It’s a great way for younger alums to
reengage with their kids back in the
community.”
On the other hand, Saint Ignatius
High School in Cleveland’s Ohio City
neighborhood doesn’t focus too
young with its recruitment efforts. It
primarily focuses its efforts on
grades six through eight through
programs with “substance,” according to Pat O’Rourke, the school’s director of admissions. Saint Ignatius,
however, does boast its REACHing
Magis (Latin for “more”) program,
which is designed to reach out to
students — mostly minorities — in
the city of Cleveland as young as fifth
grade who have traditionally been
underrepresented at the school.
Still, in all of its efforts, O’Rourke
stressed that getting younger students
— and their families — on campus is a
valuable recruitment tool.
“When they get down here and see
the campus, they love it,” he said.
“That’s the big goal. Sometimes people, believe it or not, are afraid of
Ohio City. But once they get down
here, it’s a pretty easy sell.”
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216-687-3786
www.csuohio.edu/business
Crain’s third “Who to Watch” section of 2016 — “Who to Watch in Law” —
is scheduled for publication on Sept. 26. It will highlight up-and-comers and
innovators in Northeast Ohio’s legal sector, and we’re looking for suggestions.
We’re profiling individuals who are, of course, excellent legal practitioners but also have a passion for their work, their clients and the Northeast Ohio
community. These individuals could be from a big firm, a small firm, a local
company or even nonprofit.
There are no hard and fast requirements for this section, other than that
the candidate needs to exhibit the kind of potential that makes him or her
someone to watch in the legal sector. We’re looking for those individuals who
might fly under the radar now but could disrupt their field — for the better
— in the future.
If you think you know who will be among those leading Northeast Ohio’s legal space in the future, drop an email to sections editor Timothy Magaw,
[email protected]. Please include “Who to Watch in Law” in the subject line.
Send your suggestions no later than noon on Monday, Aug. 1. Please include the person’s name, position and a paragraph explaining why he or she
stands out.
Crain’s “Who to Watch in Finance” section will appear in the June 27 issue.
20160620-NEWS--17-NAT-CCI-CL_--
6/16/2016
2:28 PM
Page 1
Q & A: Richard Clark
President, Saint Martin de Porres
Richard Clark, a former principal of St. Ignatius High School, admittedly took a chance when he became the first employee of Saint Martin de
Porres High School in Cleveland’s St. Clair-Superior neighborhood. The results, however, have been nothing short of extraordinary. Now, the
school, which opened in 2003, is in the midst of raising significant dollars for a new, $26 million facility designed to take the school to the next
level. The new building recently got a $250,000 boost from Sherwin-Williams Co. and the Connor Foundation. Crain’s recently chatted with
Clark about Saint Martin’s 65,000-square-foot facility taking shape just east of the intersection of Norwood and St. Clair and what makes the
school — and its students — so special. — Timothy Magaw
Tell me about the school’s
mission.
We’re part of the Cristo Rey
Network of schools, and the
mission is to provide a quality
college prep education to urban
kids with low economic resources.
What’s unique — the secret sauce
— is our work-study program that
touches every student from the
first day until they graduate. They
work five days a month — full
days — at various jobs in and out
of the city. They begin to build a
network with people at those
organizations. They work at
places like the Cleveland Clinic,
Sherwin-Williams, Jones Day or
Baker Hostetler.
Why has the corporate
community responded so well?
Cleveland is more philanthropic
and has a better sense of civic
responsibility than most places in
the United States. Secondly,
businesses in Cleveland are
looking for ways to diversify the
workforce, bringing in kids who
wouldn’t necessarily have had an
opportunity. This is a way to build
a pipeline down the road, and
that’s beginning to happen since
we graduated our first class. We
feel this kind of program connects
very talented young people with
companies who are looking for
Clevelanders to work there.
Did you expect this
experimental school
to be such a success?
Well, I dreamt about it. It’s been a
long journey. I didn’t have this kind
of success in my mind when we
started, but it’s been mind blowing
to be honest. When we started, it
was out of a grade school building
built in 1912, but people trusted
their most precious gifts — their
children — with us. Fortunately,
it’s paid off.
What else makes it work?
Certainly the curriculum and the
way we teach. When I was in
school, we all sat in rooms with 40
kids in a line and the teacher
“When we started,
it was out of a
grade school
building built in
1912, but people
trusted their most
precious gifts —
their children —
with us.
Fortunately, it’s
paid off.”
— Richard Clark,
President, Saint Martin de Porres
turned on the firehose and we
took notes. We based this school
on a project-based centered way
of learning. It’s much more
engaging. Whole classes do
projects together. That’s one of
the reasons we’re building a
building. The buildings in 1912
were built for that type of factorystyle education.
What’s special
about the new facility?
It’s designed around the way we
want to teach. This is not your
father’s school building. It allows
for collaboration between small
groups, larger groups and even
whole grades working together.
It’s going to be a collaborative
space more like at Google or
even Hyland Software. A lot of
school buildings in urban areas
look like fortresses. Ours is right
on the street, and when you walk
by, you will see kids learning.
We’re going to be able to reach
out to people, but they’ll also be
able to reach in. That’s sort of
our education model — not like
the ivory tower model. The city is
our classroom. Let’s be a part of
it.
What’s been the biggest
challenge?
One of the biggest challenges was
finding jobs for the students,
getting them to pay the kids to go
to work. It’s a hard thing to believe
in, and you can’t believe the value
these young people bring. Once
the company gets in, they tend to
maintain it the best they can.
Once it works and they see it as a
pipeline and as a way of healing
the city a little bit, they realize
this is the best investment they
can make.
Also, can it be a challenge to
sell the school to families?
When parents hear about the
school, they say they can’t afford
it, but we aren’t a traditional
tuition driven school. We have to
communicate this. Every family
pays something — the average
tuition is $300 a year — but we
aren’t barring students because of
money. The ‘something’ is what
you can afford. That’s an unusual
message.
BEAUMONT
WOMEN EXCEL!
Academic Excellence is the essence of a Beaumont
education. This is represented by 86% of the class of 2016
who have earned scholarships in excess of $11.8 million,
with 100% of the senior class enrolling in a college or
university. Congratulations to our graduates!
COLLEGES AND UNIVERSITIES
ACCEPTING THE CLASS OF 2016
Ashland University
Baldwin Wallace University
Boston University
Bowling Green State University
Butler University
Capital University
Case Western Reserve University
Catholic University of America
Cleveland Institute of Art
Cleveland State University
College of Charleston
College of the Holy Cross
College of Wooster
Columbia College Chicago
Cornell University
Cuyahoga Community College
Denison University
DePaul University
Duquesne University
Eastern Michigan University
Elon University
Fairfield University
Florida Gulf Coast University
Fordham University
Franciscan University of
Steubenville
Gannon University
Georgetown University
George Washington University
Hillsdale College
Hiram College
Howard University
Ithaca College
John Carroll University
Johnson & Wales University
Kent State University
Lake Erie College
Lakeland Community College
Lourdes University
Loyola University Chicago
Loyola University Maryland
Maine Maritime Academy
Manhattan College
Marietta College
Marquette University
Mercyhurst University
Miami University
Michigan State University
Mount St. Joseph University
Northwestern University
Notre Dame College of Ohio
Ohio Dominican University
Ohio Northern University
Ohio University
Ohio Wesleyan University
Otterbein University
Pennsylvania State University
Point Loma Nazarene University
Point Park University
Providence College
Purdue University
Rochester Institute of Technology
Saint Joseph’s University
Saint Louis University
Saint Mary’s College
Saint Mary-of-the-Woods College
Shawnee State University
Spelman College
St. Edward’s University
SUNY Maritime College
Syracuse University
The Ohio State University
The Ohio State University,
Mansfield
Tusculum College
University of Akron
University of California, Irvine
University of Chicago
University of Cincinnati
University of Connecticut
University of Dayton
University of Denver
University of Findlay
University of Indianapolis
University of Kentucky
University of Maryland
University of Michigan
University of Mount Union
University of Notre Dame
University of Pittsburgh
University of Pittsburgh at
Greensburg
University of Toledo
University of Vermont
University of Washington
Ursuline College
Villanova University
Wake Forest University
Walsh University
Washington and Jefferson College
Washington University in St.
Louis
West Virginia University
Wittenberg University
Wright State University
Xavier University
3301 North Park Blvd., Cleveland Heights, OH 44118 | 216.321.2954 | BeaumontSchool.org
A Catholic
school in the
Ursuline tradition,
educating women
for life, leadership
and service.
20160620-NEWS--18-NAT-CCI-CL_--
PAGE 18
6/16/2016
2:57 PM
Page 1
Empowering Young Women
Hathaway Brown
By MICHELLE PARK LAZETTE
[email protected]
Over 70% of the Class of 2016
was offered over $17.1 million in college scholarships.
Our graduates are attending colleges, including:
Boston College
Case Western Reserve University
Georgetown University
Northwestern University
The Ohio State University
Syracuse University
University of Notre Dame
University of Pennsylvania
University of Southern California
Vanderbilt University
A girls’ Catholic college-preparatory high school
20770 Hilliard Blvd. | Rocky River, Ohio 44116 | 440.331.1572
www.magnificaths.org
35th Anniversary
PROMOTE.
35th Anniversary
CLEVELAND BUSINESS
VOL. 36, NO. 47
NOVEMBER 23 - NOVEMBER 29, 2015
ALLYSON O’KEEFE, 37
Partner; Porter Wright
35th Anniversary
CLEVELAND BUSINESS
VOL. 36, NO. 47
NOVEMBER
23 - NOVEMBER 29, 2015
Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing
a summer internship there as a Case Western Reserve University law student. Since then, she has
worked on many significant deals across Cleveland, including Flats East Bank, The
Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been promoted to real estateALLYSON
partner.
O’KEEFE, 37
“Young professionals who live downtown are so excited about the city,” said O’Keefe, a
Partner;
Porter
Columbus native who
lived downtown
forWright
10 years before moving to Rocky River. “The ones
who aren’t from here are often more excited about it. When you move here from somewhere
else,
you
don’t
for granted.”
VOL.
36,
NO. take
47 it Allyson
NOVEMBER
23 - NOVEMBER 29, 2015
O’Keefe started her legal career at Porter Wright in 2004 after completing
a sumWhen O’Keefe is not working or spending time with her husband and two children, she can
mer internship there as a Case Western Reserve University law student. Since then, she has
be found volunteering on the boards of nonprofit organizations and watching college football.
Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been proWHAT INSPIRES YOU ABOUT YOUR WORK?
moted to real estateALLYSON
partner.
O’KEEFE,
Just seeing what Cleveland has gone through
in the time
that I’ve 37
been here, there’s obvious“Young professionals who live downtown are so excited about the city,” said O’Keefe, a
ly a lot of excitement around real estatePartner;
development.
I started
in 2004 when we were crazy
Porter
Columbus native who lived downtown
for Wright
10 years before moving to Rocky River. “The ones
busy with development. That was sort of the boom from ’04 through ’08. I saw it go through
the downturn, then I saw it rise again, even stronger than before locally.
else, you don’t take it for granted.”
Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can
mer
internship
as a Case Western
Reserve University
law student. Since then, she has
MANY OF THE PROJECTS YOU
WORKED
ON there
ARE MIXED-USE
URBAN PROJECTS.
IS
be found volunteering on the boards of nonprofit organizations and watching college football.
THAT AN AREA OF EXPERTISE?
Metropolitan
at the 9, Uptown
in every
University
and Steelyard Commons, and has been proYes, definitely. Real estate is
extremely interesting
because
deal Circle
is differWHAT INSPIRES YOU ABOUT YOUR WORK?
moted
to real
estate
ent. You can never get bored
because
there’s
so partner.
much variety there, from tax
Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obvious“Young
who live downtown
so excited about the city,” said O’Keefe, a
credits to historic renovations,
from professionals
ground-up development
to rehab, are
from
ly a lot of excitement around real estate development. I started in 2004 when we were crazy
mixed-use to residential. Columbus native who lived downtown for 10 years before moving to Rocky River. “The ones
busy with development. That was sort of the boom from ’04 through ’08. I saw it go through
the downturn, then I saw it rise again, even stronger than before locally.
else,
you LEADERSHIP
don’t take it for
granted.”
HOW WOULD YOU DESCRIBE
YOUR
STYLE?
CLEVELAND BUSINESS
Why not?
Let the Custom Reprint Department help you leverage this great press.
For more information contact
Krista Bora, Reprint Account Executive
[email protected] • tel 212.210.0750
O’KeefeI expect
is not working
or spending
timeI work,
with her husband and two children, she can
I definitely believe in leadingWhen
by example.
the people
with whom
MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS
be found
volunteering
on the very
boards
of nonprofit
and watching college football.
my associates, to work hard,
and they
see me working
hard.
For me, it’sorganizations
all
THAT AN AREA OF EXPERTISE?
about working hard and doing good work.
Yes, definitely. Real estate is extremely interesting because every deal is differWHAT INSPIRES YOU ABOUT YOUR WORK?
ent. You can never get bored because there’s so much variety there, from tax
Just WHAT
seeingWAS
whatITCleveland
has gone
the time that I’ve been here, there’s obviousWHAT OTHERS ARE SAYING:
LIKE TO WORK
WITHthrough
O’KEEFEinON
credits to historic renovations, from ground-up development to rehab, from
ly a lot of excitement around real estate development. I started in 2004 when we were crazy
THE FLATS EAST BANK PROJECT?
mixed-use to residential.
busy
with
development.
of the boom
from ’04 through ’08. I saw it go through
“Allyson is extremely bright
and
quick
witted, butThat
whatwas
trulysort
distinguishes
her
the downturn,
then I saw itpeople
rise again,
even
from most successful attorneys
is her exceptional
skills.
Shestronger
has an than before locally.
HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE?
uncanny ability to encourage the ‘adversaries’ in her negotiations to work in
I definitely believe in leading by example. I expect the people with whom I work,
OF THE
PROJECTS
YOU WORKED
concert with her to achieve win/win MANY
solutions
to difficult
problems,”
said ON ARE MIXED-USE UR
my associates, to work hard, and they see me working very hard. For me, it’s all
THAT
AN AREA
EXPERTISE?of the
Scott Wolstein, CEO of Starwood Retail
Partners
andOF
co-developer
Yes, definitely. Real estate is extremely interesting because every deal is differFlats East Bank project.
ent. You can never get bored
because
there’s so much variety there, from tax
— Lee
Chilcote
WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON
credits to historic renovations, from ground-up development to rehab, from
mixed-use to residential.
“Allyson is extremely bright and quick witted, but what truly distinguishes her
successfulInc.
attorneys
is reserved.
her exceptional people skills. She has an
Reprinted with permission from the Crain's Cleveland Business. © 2015from
Crainmost
Communications
All Rights
HOW WOULD
YOU
DESCRIBE YOUR LEADERSHIP STYLE?
ability to encourage
the ‘adversaries’ in her negotiations to work in
Further duplication without permission is prohibited. Visituncanny
www.crainscleveland.com.
#CC15040
I definitely believe in leading by example. I expect the people with whom I work,
concert with her to achieve win/win solutions to difficult problems,” said
my associates, to work hard, and they see me working very hard. For me, it’s all
Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the
Flats East Bank project.
— Lee Chilcote
WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK W
“Allyson is extremely bright and quick witted, but what truly distinguishes her
successfulInc.
attorneys
her exceptional people skills. She has an
Reprinted with permission from the Crain's Cleveland Business. © 2015from
Crainmost
Communications
All Rightsisreserved.
ability to encourage
the ‘adversaries’ in her negotiations to work in
Further duplication without permission is prohibited. Visituncanny
www.crainscleveland.com.
#CC15040
concert with her to achieve win/win solutions to difficult problems,” said
Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the
Flats East Bank project.
Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain Communications Inc. All Rights reserved.
Further duplication without permission is prohibited. Visit www.crainscleveland.com. #CC15040
National firm expertise...
local attention.
Hands down, our education professionals are among the
best in the business. But that doesn’t quite cut it. The way
we see it, it’s not enough that we’re top-notch experts
in accounting – we need to be experts in what you do
too. That’s why we make it our business to know your
business, inside and out. Maloney + Novotny has extensive
experience working with private schools providing audit,
accounting, tax and consulting services.
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maloneynovotny.com
It’s crazy to think it, Izzy Catanzaro begins, but she opened and ran
her own coffeehouse as a high
school student at Hathaway Brown.
To get it going, her team and she
met with fire, health and building
department officials. After the café
opened, the coffee machine broke
down, so Catanzaro ordered service.
She handled billing, staffing challenges and more.
“Someone will never understand
that (business) until they have to do
it,” said Catanzaro, who served as
the café’s CEO before graduating
earlier this month. “Experience is
everything. It’s all trial and error, so
the more you do it, the less error, I
hope.”
Hands-on lessons are precisely
the point of the student-run coffee
shop Hathaway Brown built and
opened in late January inside the
school. The Hath Caff, which sells
products of local vendors including
The Stone Oven, Cleveland Coffee
Company and Bialy’s Bagels, is one
of a few investments completed recently at the Shaker Heights
school.
At a cost of roughly $800,000,
Hathaway Brown added the Hath
Caff, transformed the school’s library to a more open space called
the Learning Commons, and established a so-called IDEA lab.
The Hath Caff is equipped with
the staples of a typical coffee shop: a
coffee maker; a smoothie maker; a
display case for bagels, muffins, and
the like; a coffee grinder, a dishwasher and more.
“It’s just like a little Starbucks,”
said Kevin Purpura, director of the
Center for Business and Finance of
Hathaway Brown. “(The students)
determine wages that are going to be
paid, they choose a head barista,
they keep the books on Excel.”
Purpura is unaware of another
school in Northeast Ohio that has a
business not just staffed but run by
its students.
“There’s a lot of risk involved in
that because they are young kids, but
I think that makes it very unique,” he
said. “(The rewards) are infinite. It’s
an invaluable way to teach students
about actual business.”
The students running the Hath
Caff answer to a five-person advisory board, with whom they meet once
a week. Students as of the end of the
school year were vetting expansions
to the business such as selling to the
middle school and catering meetings
on campus.
Catanzaro applied for and underwent two rounds of interviews to
lead its operations.
“Something like this happens
once in a lifetime for a school like
Hathaway Brown and I wanted to
make sure it was done well,” she said
of the café’s opening. “It’ll be cool to
be able to say that I was part of the
team that started it.”
The Learning Commons and IDEA
lab opened before the Hath Caff in
fall 2015.
Shorter bookshelves replaced 6foot-tall stacks in what used to be a
traditional-looking library, making it
so one can see from one end of the
Learning Commons to the other.
Three “idea bays” are painted with
“They’re not just
learning the math
and science and
English. The more
important thing is
can you combine
them to do
something creative
with your life?”
— Sue Sadler, senior associate
head and director of Hathaway
Brown Upper School
20160620-NEWS--19-NAT-CCI-CL_--
6/16/2016
4:41 PM
Page 1
stresses hands-on learning in new spaces
IdeaPaint, making the walls a place
where students can write and solve
problems. Campfire furniture allows
students to stage collaborative space
however they like.
The IDEA lab, located in Hathaway Brown’s former woodshop, is
organized into stations equipped for
3-D printing, molding and casting,
vinyl cutting and more. Students
used the lab to create the signage for
the Hath Caff.
Sue Sadler, senior associate head
and director of Hathaway Brown
Upper School, said she already sees
evidence that the investments are
making a difference.
“I think it’s brought a level of joy
and relevance to learning that we
didn’t see 10 or 15 years ago,” she
said.
Getting in experiences such as
these (navigating health department
matters, paying employees, and
more) helps to equip Hathaway students for real-world work, Sadler
said.
“The next generation is predicted to have seven different careers,”
Sadler said. “Not just seven jobs —
seven different careers. More and
The Hath Caff is like a typical coffee shop. (Shannon Ahlstrand photo)
more people are working from their
homes, having to piece together
jobs. Technology is replacing jobs.
People who think outside of the box
are going to have an advantage
when they go out into the workforce.
“I think we’re looking at a future
where kids are going to have to be
entrepreneurial, and I think these
are spaces where they can think like
that,” she added. “They’re not just
learning the math and science and
English. The more important thing
is can you combine them to do
something creative with your life?”
Early childhood students explore the new IDEA lab. (Keith Berr photos)
Forever green and white.
No matter what colors come next.
est . 1896
Congratulations to the Laurel School Class of 2016.
Leah Ridgeway Jackson shares a rocket made on a 3-D printer.
American University • Barnard College • Bucknell University • Butler University • Carnegie Mellon University • Colorado
College • Cornell University • Denison University • DePaul University • Duke University • Elon University • Emory University
• Fordham University (3) • George Washington University • Goucher College • Indiana University • Ithaca College (2) •
John Carroll University • Kenyon College • Lafayette College • Miami University (3) • Michigan State University • Middlebury
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• Tulane University • U.S. Military Academy, West Point • Union College • University of Chicago • University of Cincinnati (2)
• University of Delaware • University of Michigan (3) • University of Notre Dame • University of Pennsylvania • University
of Pennsylvania, Wharton School of Business • University of Pittsburgh (2) • University of Puget Sound • University of
Richmond • Ursuline College • Vanderbilt University • Vassar College • Washington University in St. Louis • Yale University
•
LYMAN CAMPUS One Lyman Circle, Shaker Heights
BUTLER CAMPUS 7420 Fairmount Road, Russell Twp.
Girls Kindergarten-Grade 12 and Coed Pre-Primary
216.464.0946 LaurelSchool.org
College choices as of May 5, 2016.
The café is run entirely by students. (Shannon Ahlstrand photo)
/LaurelSchool
@LaurelSchool
Dream. Dare. Do.
20160620-NEWS--20-NAT-CCI-CL_--
PAGE 20
6/16/2016
3:07 PM
Page 1
Schools embrace
South Suburban Montessori School
Providing authentic Montessori education for Children 18 months – 14 years of age
OUR SCHOOL IS A PLACE WHERE:
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• academic achievement and critical thinking skills are the cornerstones of preparing students for life
• our teachers are nurturing, caring and create a home-like, safe learning environment
• we value the teaching of independence as it produces emotionally intelligent students who lead, not follow
• the values of respect, honesty, fairness and acceptance permeate every classroom
Our students look forward to sharing our school with you!
CALL TODAY FOR A TOUR: 440-526-1966
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AT HOME. IN THE OFFICE.
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Congratulations to the
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Cleveland Central Catholic High School
6550 Baxter Avenue | Cleveland, OH 44105
www.centralcatholichs.org
Facebook.com/CrainsCleveland
Twitter.com/CrainsCleveland
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By MICHELLE PARK LAZETTE
[email protected]
Dozens of Northeast Ohio students walked the halls of school this
year in skirts woven in a developing
country and sold by an entrepreneur
with a mission.
Founded by Northeast Ohio native Hilary Dell, One Seed Heritage
delivered its first fair trade school
uniform in August 2015.
It’s since been added as an option
for students enrolling in numerous
local schools.
The seed for the business was
planted when Dell, company president and a graduate of Gilmour
Academy in Gates Mills, witnessed
the poverty in Uganda during a
three-month trip during college. A
dual major at Kent State University
studying fashion design and finance,
Dell ended up briefly overseeing a
fair trade operation employing
roughly 20 women. (Fair trade
means a company is paying employees a fair wage.)
“This woman had started this tiny
little business that gave them (the
Ugandan women) a little bit of work,
but that little bit of work allowed
them to build homes and to send
their children to school,” Dell said. “I
decided at that point that if I did
continue in design, I wanted to work
for a company that had some sort of
mission.”
She later traveled to Guatemala,
whose textiles she grew to love. Dell
learned to weave there, and found
herself reminded of the school uniforms she used to wear.
“I thought there’s got to be a better way where we can provide sustainable work to these artisans that
isn’t based on fashion trends,” Dell
said. “We can sell things because
One Seed’s Hilary Dell (right) at
the market. (Contributed photo)
they are beautiful, [but] people
aren’t going to buy just because they
are fair trade. That’s not a deciding
factor for the average customer. You
end up competing with every other
apparel company, so it’s really hard.
“A school uniform is anti-fashion,” she added. “How great would it
be if I could use the uniform to connect students to the artisans? So
that’s how the uniform came about.”
One Seed Heritage skirts are woven by cooperatives of Guatemalan
women, and the company’s shirts
are produced by a fair trade factory
in India.
One Seed Heritage now is selling to
eight schools, one of which (Saint Ursula Academy in Cincinnati) placed a
500-skirt order to outfit all of its students in fair trade threads. Locally,
Magnificat High School students have
purchased roughly 100 skirts, and students at Beaumont School, Our Lady
of the Elms schools, Gilmour Academy schools, and Saint Joseph Academy also are customers.
Magnificat is a fair trade-certified
school and had sought fair trade uniforms before without success, said
20160620-NEWS--21-NAT-CCI-CL_--
6/16/2016
4:43 PM
Page 1
e One Seed Heritage’s fair trade mission
The fair trade club at Gilmour Academy models One Seed Heritage’s
uniforms. (Contributed photo)
Kathleen Sardon, campus minister
of the Rocky River school.
Their One Seed Heritage skirts —
navy blue with white stripes — are
“really, really cute,” but there’s an
added deliverable that makes the uniforms even more unique, Sardon said.
Students in Spanish class participated in several Skype sessions with
the women in Guatemala who weave
the skirts, learning about the cre-
ation of the textiles, Sardon explained.
“They’re getting practical practice
with their Spanish, learning about
the culture, learning what the challenges are for women who want to
be entrepreneurs in Guatemala,” she
said. “It’s just such a great connection with what we wear.”
Those Skype sessions are intended to create a connection, Dell said.
“(It’s about) realizing there are people making this stuff, and they should
have all the same benefits that we do,”
she said. “It’s not like they deserve less
because of where they were born, or
that it’s OK that they have less. We
should do our part to make the world
a better place.”
Both Sardon and Coreen Schaefer,
dean of students at Beaumont School
in Cleveland Heights, said the fair
trade mission of One Seed Heritage
aligns with their schools’ missions and
that Dell’s having a background like
those of their students is powerful.
“She is a strong role model for our
young women, as a fellow Clevelander, because they can see themselves in Hilary,” Schaefer wrote in
an email.
“Hilary believes very strongly in educating young people about why they
should choose fair trade, so that it is
more of a statement of belief than a
simple choice of skirt,” Schaefer continued. “And our students really get it;
they believe in the education of
women throughout the world, not
only of themselves. They want to see
women lead whenever they can.”
One Seed Heritage’s skirts
are woven by
cooperatives
of Guatemalan
women, while
its shirts are
produced by a
fair trade factory in India.
(Contributed
photos)
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20160620-NEWS--22-NAT-CCI-CL_--
PAGE 22
6/17/2016
3:54 PM
Page 1
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The trend of industry involvement
in education is growing, said Jason
Drake, director of education and
workforce development for Dan T.
Moore Co. The group of manufacturing companies is part of an effort
to teach mechanical skills in the district, starting at Ginn Academy.
Drake pointed to training programs at companies like Euclidbased Lincoln Electric Co., extracurricular activities like the robotics
competition run by the Alliance for
Working Together in Mentor, and
the district’s own Academies of
Cleveland initiative, which aims to
overhaul and update its career-technical schools. Trends like the maker
movement have put these skills back
on the public radar, he said, after vocational pathways were stigmatized
during the era of college-for-all.
Blake Kohn, executive director at
D.C.-based National Network of
Schools in Partnership, said momentum has started to pick up within the past two years when it comes
to partnerships between schools and
businesses. There’s a recognition
that communities are stronger when
all the pieces work together.
“I feel like the moment is now,”
she said.
The network started almost four
years ago to focus on partnerships between schools, but soon expanded to
collaborations between schools and
businesses, community organizations
and nonprofits. There can be reason
to pause when entering into an industry-school partnership, though.
Faith Boninger, a research associate with Colorado-based National
Education Policy Center, questions
whether having businesses deeply
involved in schools is a good practice. Businesses have to act in their
own best interest, so if programs are
no longer beneficial to a company, it
could leave a school without support
it had come to rely on, she said. The
programs also essentially serve as
marketing for the companies, which
some could say is inappropriate.
If a school decides to bring in a
business as a partner, Boninger said
it’s important that it’s a decision
made with all stakeholders. A formal
contract that helps define the relationship is a plus. And she cautioned
against letting businesses weigh in
on the curriculum, though she said
there is more of a role for companies
in a vocational setting. Giving businesses a voice in creating curriculum
can lead to bias and a less democratic process, she said.
Regardless, Kohn said the majority of schools are now thinking about
these types of partnerships. But so
far, she said, most aren’t actually doing it or doing it well.
If she’s right, Cleveland might be
ahead of the curve.
Teaching tech
For an appointment call 216-325-7570
South Euclid
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Broadview Heights
Chelsey Cook, principal at the
John Marshall School of Information
Technology, came to Cleveland from
Texas as an aspiring principal under
Second-year apprentice Zane Nesta shows how to form a seam to Max
Hayes students Coby Martinez and Devin Long. (CMSD Communications)
the Cleveland Plan. The urban district she used to work at had similar
demographics, she said, but Cleveland is more open and collaborative.
It has a start-up, grassroots feel to it.
“We’re all trying to create something that doesn’t exist,” she said.
Cook wants John Marshall IT to
serve as a model for computer science
education across Northeast Ohio — or
any needed workforce development
pipeline in the region. It’s great to
have volunteers come in once a year
or to have an advisory board to serve
a school, she said, but John Marshall’s
partnerships with universities and local tech-related companies have allowed it to create a sustained conversation with the entire “computer
science ecosystem.”
The more exposure to a job they
have, the less intimidated they’ll be.
Just sending industry representatives into schools isn’t effective.
“It can be hard to make it really
meaningful, and it takes time to do
that,” Cook said.
The IT school is one of three on the
John Marshall campus focused on a
specific area of study (the others being
engineering and civic and business
leadership). John Marshall’s new areas of study started with ninth and
10th grades this past school year.
Every student had a computer science
course, Cook said, and the school
worked with NASA and Hyland Software to provide enrichment programs
for students after school.
Hyland continues to hire, said
Caitlin Nowlin, technical outreach
program manager for the company,
but there’s not a large supply of employees from which to draw. It’s on
the industry to get the word out earlier. And if schools keep adding computer science programs, Nowlin said
industry will have an “obligation” to
get in the classroom.
Hands-on approach
Dan T. Moore Co. is working with
Ginn Academy to launch the “Mechanical Mindset Workroom,” a program designed to help students get
training in areas like welding and
soldering. The program is still seeking funding through its associated
nonprofit, but plans to start at Ginn
Academy this summer and eventually expand district or statewide.
The program is a return to the
hands-on programs like wood or
metal shop that have been defunded
in recent years, Drake said. The difference is that these modern programs are being driven by industry,
while taking place in the schools. Another big component of the Mechanical Mindset program will be internship opportunities.
“We’re looking for this program to
be a pathway multiplier, to give kids
options for how they pursue careers
in the local economy,” he said. “We
want to see kids graduating with
more than just high school diplomas. We want them to be graduating
with industry-recognized certifications and practical skill sets.”
Max S. Hayes High School has
long focused on training students for
manufacturing jobs, but it, too, has
taken steps to make those lessons
more relevant to students. Last year,
the school introduced the Technical
Corps Program, an offshoot of the
Cleveland Foundation’s Encore program that brought retired industry
professionals into classrooms to
work with students.
For the pilot, the school had three
retired manufacturing experts — an
ironworker, a manufacturing designer and a project manager — who, for
a small stipend, worked with teachers 10 hours a week to lead projects.
The pilot started small, but Brianna
Schultz, Wire-Net’s director of youth
programs, hopes to eventually see it
grow to a corps member in every
trade classroom. Manufacturers, in
particular, are worried about who
will follow in the footsteps of their
retiring employees, Schultz said.
John Nesta, construction curriculum specialist at Max Hayes, said
students may be more likely to listen
to professionals who lived it, because they can share the good and
the bad about an industry. He’s seen
that himself, as he came from the
construction industry before joining
Max Hayes. So far, these industryschool partnerships have been
piecemeal, but Magnet — the Manufacturing Advocacy and Growth
Network — in Cleveland is looking to
formalize them in the manufacturing space, bringing high schools,
community colleges and companies
together in what it’s calling the Early
College, Early Career program. Interim vice president of workforce
Richard D. McClellan said the program will start with foundational activities like plant tours at the freshman level, but would grow to include
hands-on training and college courses by the time students are juniors
and seniors. The goal would be to
graduate students with a high school
diploma, industry certifications and
the start of an associate’s degree.
The program won’t just be for the
Cleveland public schools — in fact,
Magnet CEO Ethan Karp said the design will be modular so it can work at
any school — but the district likely will
be involved. McClellan said the pilot,
which will likely begin in fall 2016, will
start with large companies, but Magnet wants to make sure the model is
accessible to smaller companies, too.
“We see a very clear opportunity
to reinvent this ladder to the middle
class and to put it back into place in
our economy,” McClellan said.
20160620-NEWS--23-NAT-CCI-CL_--
6/17/2016
3:34 PM
Page 1
Business of Life
Yacht club is
sailing along
Tod Sackett and Dillon Furlong of Mentor lower their boat into the water at the Edgewater Yacht Club in Cleveland. (Ken Blaze for Crain’s)
By JEREMY NOBILE
To Chad Atzemis, there’s little better freshwater sailing than that on Lake Erie.
The 25-year veteran mariner of Chesterland,
who races sailboats some three to five days a
week, likened Cleveland’s Great Lake to a local
ocean as he squatted barefoot on the bow of
his boat as it gently bobbed in the cool waters
at its dock in the Edgewater Yacht Club. At the
time, he was sanding “Tenacity” — his vessel
— prepping it for some fresh white paint.
“It’s an inland sea, and it can be trial by fire
out there,” Atzemis said, referencing conditions that can quickly change from mellow to
wicked — and you don’t want to be caught off
guard when a storm rolls in.
Yet, the oft unpredictable ocean-like waters
of Lake Erie are what make every trip a different experience, notes Edgewater commodore
Duane Wolff. Sometimes the water is as mellow and flat as a mirror. Other times, it’s precariously choppy. “The weather changes a lot,
and fast,” Atzemis said. “But really, it’s better
sailing than most other lakes.”
Every excursion is a unique experience,
whether setting out for racing, fishing, sailing
to Put-In-Bay or the Canadian coast or just taking a leisurely spin in the lake that offers spectacular views of downtown Cleveland.
There’s a long history of recreational sailing
that’s drawn people to Lake Erie. And the
area’s sailing clubs have carried on that tradition well over the past century.
Atzemis is one of more than 1,500 members
in some 570 member families at the Edgewater
Yacht Club, one of Cleveland’s oldest clubs for
new and veteran mariners on the near West
Side between the city and Lakewood.
The nonprofit club itself is seeing a resurgence in popularity along with the activity itself, logging some of its best membership
numbers since the early 1990s.
General manager Ron Wolfe chalks that up
to several factors, from improvements to the
club — it added a pool to its clubhouse in the
last several years and will undergo a longawaited $2 million renovation starting this fall
Edgewater Yacht Club commodore Duane Wolff says Lake Erie offers better sailing
opportunities “than most other lakes.”
that a new membership base has helped push
for — to renovations of the nearby neighborhoods that have been drawing more people to
live downtown. Edgewater is actually open
year-round, offering a popular socializing spot
even during the winter months when the lake
is frozen solid.
Of the nearly 400 wet docks alone, about 350
are filled. And more reservations for what they
call transient docks are lined up during the
week of the Republican National Convention.
“The redevelopment of places like Gordon
Square and Ohio City is bringing a bunch of
new members,” Wolfe said. “More young people are coming down and discovering the club.
It’s really been a boom for this area.”
This club’s roots trace back to the 1890s
with the original Cleveland Yachting Club,
whose initial home was off an East Ninth Street
pier.
Sailors would eventually split off and form
their own clubs in the coming years. The
Cleveland Yachting Club incorporated in
Rocky River in 1910, as those who preferred the
original location in Cleveland stayed there and
adopted the Edgewater name. Several years
later, members of both groups formed the
Lakeside Yacht Club.
The idea of yachting might carry a certain
stigma, evoking images of stuffy Thurston
Howell III types in fancy suits.
But that’s not the atmosphere here at all.
On a late summery weekday afternoon, the
club is busy and lively with people of all ages
and lifestyles. It’s a friendly and inviting presence. Many members are just getting off work,
grabbing a whiskey at the bar or carrying small
coolers shuffling with ice and beer to their
boats. The bulk are sailboats — or yachts,
which are really just midsize sailboats, though
some are certainly much larger than others —
but there are powerboaters, too.
Others, like Atzemis, are taking advantage of
the mild weather to get in some needed maintenance.
Plenty others are taking to the water. On this
Wednesday afternoon, sailors young to old are
gearing up for races later that night. Some are
just lounging in the clubhouse or on their ships
in the docks.
And they’re all brought together by Northeast Ohio’s most precious natural resource in
this Great Lake.
“It doesn’t matter if you’re going out for an
hour or for a couple of weeks,” said Wolff,
whose boat is named “Champagne and Ripple,” a reference to one of the favorites drinks
of Fred Sanford of the popular 1970s sitcom.
“There’s something new to learn every time.
It’s appealing in that manner. It’s what gives it
a challenge.
“And at the same time, it can also be quite
peaceful and relaxing” he added. “There’s
nothing quite like sailing on Lake Erie.”
20160620-NEWS--24-NAT-CCI-CL_--
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6/17/2016
11:32 AM
Page 1
BUSINESS OF LIFE
Source Lunch
Mark Rantala is always brimming
with ideas and observations.
As executive director of the Lake County Ohio
Port and Economic Development Authority,
Rantala said he starts each day the way he did
in 23 years as a broker for commercial real estate: “You start the day reinventing the position. Every day offers a new challenge and new
opportunity.” He has been executive director
of the authority for three years. Prior to that,
he served almost two years as executive director of the Nederland Economic Development Corp. in Nederland, Texas. However,
Rantala is not new to Northeast Ohio or real estate development in the region. He served as a
broker for retail real estate for CBRE Group and
other concerns for nearly 30 years. He worked on
shopping center developments and store leasing
throughout Northeast Ohio, including many transactions in Lake County. He did the turn in Texas to get into
the economic development business; the Lake County
job brought him home. — Stan Bullard
Mark Rantala
Why is it a port authority? You
don’t have a port.
There is a port in Lake County. We
just don’t own it. Several private
operators ship more than 200
million tons, mostly of aggregate,
through the port. We do own an
airport: Lost Nation Airport, which
we operate as a tool for business
retention and attraction. It’s
valuable for manufacturers and
other business owners to have
that quick access to the airport.
The Ohio Legislature envisioned
port authorities as economic
development engines. We have
capabilities beyond just financing
to foster, aid, provide or promote
transportation, housing,
recreation, government
operations and culture as well as
financing.
retire in the next 10 years, and
the number of millennials entering
the workforce is insufficient to
meet this need. We estimate that
Lake County alone will be short
between 4,000 and 8,000 workers
over the next decade. With a 3.7%
unemployment rate today, rather
than finding a job for every
worker, we are challenged to find
a worker for every job.
estate broker. In brokerage, it’s
always a case of knowing who to
go to in order to do something.
The amazing thing is the variety
of things we do in Lake County.
We are in aerospace, automotive,
lubricants and nurseries. We have
900 manufacturing businesses.
On a daily basis, I go into plants
and leave amazed at what we do
here.
I expected a real estate
answer. Are you working on
anything in that vein?
We are working with real estate
developers to get some
speculative industrial space
developed. The market is
extremely tight. CoStar estimates
a 2.8% industrial vacancy rate in
Lake County.
Is economic development just
about business attraction?
Over 80% of job creation comes
from businesses that are already
in the community. Business
retention and expansion is critical.
We have a countywide campaign
to provide regular contact with
the businesses of Lake County.
We have over 900 manufacturers
in Lake County that are major
supply chain components for the
automotive, aerospace and
advanced manufacturing driver
industries in Northeast Ohio.
How did working in economic
development in Texas affect
your outlook on this job?
I wanted to be more aggressive in
economic development in
Northeast Ohio. In Texas,
economic development is on
steroids. In Texas, 60% of
development spending is on
infrastructure to make deals
happen, such as access roads,
and 40% on credits. In Ohio, most
of the emphasis is on job tax
credits. We need to have
someone who wants to come into
the area, then do what it takes to
help them set up shop.
Is economic development just
about smokestack or
call-center or tech company
chasing?
More than 80% of job creation
comes from businesses that are
already in the community. We
have a countywide campaign to
provide regular contact with the
business of Lake County. We have
manufacturers that are in major
supply chains for multiple
industries.
What is the top economic
development challenge in Lake
County and the region?
Workforce. Over 25% of the
workforce in Lake County will
Did Lake County have any
surprises for you?
I knew Lake County well as a real
Why did Lake County launch
teacher day?
A new teacher here from Bowling
Green State University who is new
to Lake County may not know
much about the county. We help
teachers spend a full day in
manufacturing concerns in Lake
County to appreciate that there is
a future in manufacturing. When a
kid mentions to a teacher that he
wants to work in manufacturing,
we want them to know it’s a
viable career path. People who
work in manufacturing earn on
average $10,000 more annually
than the median income in
Northeast Ohio.
DEVELOPMENT
FOUR THINGS:
FAVORITE INTEREST
Baseball. I love visiting
baseball parks. I have
been to more than 40
ballparks, both minor and
major league. With two
friends, I participate in
baseballphd.net, a weekly
podcast about baseball.
FAVORITE BOOK
Joel Kotkin’s “The Next
100 Million: America in
2050.” It should be required reading for anyone
who wants to shape the
future of Northeast Ohio.
PERSONAL LIFE
My wife, Mary Anne, and I
live in Rocky River, where
our two daughters graduated from high school. I
grew up in Ashtabula
LAKE ERIE’S
IMPORTANCE
We’ve done focus groups
with students in high
school and college about
why they would live in
Lake County. The first two
reasons are for a job and
to be near family. The
third: to be near the lake.
LUNCH SPOT
Brennan’s Fish House
102 River St., Grand River
The meal
Both had perch
sandwiches, neither with
the standard French fries.
One substituted cole
slaw, the other salad. One
glass of water and one
diet Coke. One key lime
pie.
The vibe
The perch is terrific.
Rantala said it is the best
he’s ever had and he gets
people to go to Brennan’s
to prove it. Lake County
locals know about
Brennan’s, but regionally,
it’s less well-known than
the famous Pickle Bill’s on
the riverfront side of the
street.
The bill
$36.45 + tip
20160620-NEWS--25-NAT-CCI-CL_--
6/17/2016
2:56 PM
Page 1
STREAMLINK
When First Analysis called
StreamLink for an update this past
December, the company was well on
its way to achieving the ambitious
goals it had laid out a few years earlier. As a result, the investment firm,
which also offers investment banking and equity research services,
ended up chipping in $3 million during the latest round.
“They’ve done what they said they
were going to do,” Greendale said.
StreamLink’s revenue stream has
grown by huge percentages for several years in a row. Sales increased
by 80% in 2015, said CEO Adam
Roth, who declined to give specific
revenue figures. Today, the company has 43 employees, a number that
will rise as it ramps up its sales and
product development efforts. To
make room for them, it recently
moved into an 11,000-square-foot
office on the fifth floor of downtown
Cleveland’s Caxton Building. The
company previously used about
7,000 square feet on two other floors.
During the company’s first few
years in business, its growth was driven by its first product: BoardMax,
which was released in 2008, helps
nonprofits communicate with their
board members. Today, however,
70% of the company’s revenue
comes from its grant management
product, AmpliFund, Roth said.
Though StreamLink will continue
to offer BoardMax, Roth predicts
that AmpliFund will continue to
generate most of the company’s
growth for the foreseeable future.
The federal government is doing a
lot to create demand for products
like AmpliFund.
For instance, in May 2014, Congress unanimously passed the Digital Accountability and Transparency
Act, which requires the U.S. government to collect standardized data related to federal spending and publish it online. DATA — which is being
implemented over the course of several years — requires grant recipients to meet new reporting requirements.
Then, in December of that year,
another set of federal rules called
Uniform Guidance went into effect.
Among other things, those rules require states and other entities that
distribute federal grant money to
monitor it more closely, Roth said.
Thus, StreamLink aims to start winning business from entire states —
not just state agencies.
Another factor driving demand for
AmpliFund: These days, governments
are more inclined to share data on
how they spend taxpayer dollars via
the web, even when they aren’t forced
to do so by regulations, Roth said.
“They can’t (share the data) if they
can’t capture it,” he said.
Land and expand
The company already works with
the District of Columbia, and it’s
starting to do some work with statelevel agencies, which could help it
eventually win statewide contracts.
Winning statewide contracts
could help StreamLink land more local contracts as well, Roth said.
“If we sell to a state, for example,
and a state signs up its counties and
distributes funds to those counties,
we see all those counties as potential
full customers of AmpliFund at some
point,” he said.
The new capital will help the company go after bigger contracts.
StreamLink is already starting to
win larger customers. For instance,
as First Analysis was performing its
due diligence, StreamLink “signed
the largest deal in its history,” Greendale said, noting that the client is a
government entity.
Greendale predicts that even bigger deals are on the horizon.
“A single deal could potentially be
100% revenue growth,” he said.
In addition to First Analysis, the $10
million round included capital from
several existing investors: North Coast
Angel Fund and North Coast Venture
Fund, both of Northeast Ohio; Blu
Venture Investors of Vienna, Va.;
Hyde Park Venture Partners and Hyde
Park Angels, both of Chicago; and several individual investors and management team members.
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projects to designing large, new facilities. He is not satisfied until every option has been tested and the best solution is found. Tom has a working
knowledge of all projects phases,
from programming through construction administration. He also has a passion for planning and believes that the
best designs are those developed in a
team approach with the client.
Kelly possesses a strong background
in historic preservation and restoration including preparation of National
Register Nominations and Historic Tax
Credit Applications. Kelly is currently
taking the A.R.E. to become a registered architect and is a recipient of
both the 2008 and 2009 Cleveland
Restoration Society & AIA Cleveland
Preservation Award.
Eric has substantial experience in design, document development, and
construction administration of K-12
Education projects. His experience
has been gained over 12 years of designing and managing school projects
in Ohio and West Virginia for both locally funded and state co-funded designs. Eric's commitment to fostering
a collaborative environment between
all project stakeholders assures transparency and a successful project
partnership.
Prime Capital Properties LLC, is
pleased to announce that Peter
Shanes has joined the firm. With more
than three decades of experience in
Asset Management, Brokerage, Receiverships and Construction Management, he brings a wealth of experience
to the team. Peter has completed hundreds of successful assignments in all
facets of commercial real estate for local and national firms. He is known to
have a diplomatic personality, helping
to create win-win solutions for Landlords and Tenants.
Prime Capital Properties LLC, is
pleased to announce that Peter
Shanes has joined the firm. With more
than three decades of experience in
Asset Management, Brokerage, Receiverships and Construction Management, he brings a wealth of experience
to the team. Peter has completed hundreds of successful assignments in all
facets of commercial real estate for local and national firms. He is known to
have a diplomatic personality, helping
to create win-win solutions for Landlords and Tenants.
LAW
FINANCE
ARCHITECTURE
Derek Behm
Project Designer
ThenDesign
Architecture (TDA)
TDA welcomes Derek
Behm to our team as a
project designer. With 8 years of experience, Derek has extensive knowledge of
large-scale renovation and new construction projects, particularly for developers.
He is a graduate of the Kent State University’s Cleveland Urban Design Collaborative, where he earned a Master’s of
Architecture. Learn more about TDA at
www.thendesign.com.
Brad Gellert
Ralph Streza
Mitch Kendall
AIA, NCARB, LEED AP BD+C
CES Board Member
Senior Architect
Critchfield, Critchfield
& Johnston
Vice President &
SBA Loan Specialist
ThenDesign
Architecture (TDA)
TDA welcomes Brad
Gellert as a senior architect. With over
30 years of experience, he has keen expertise for complex planning and design
issues, particularly within the preservation, K-12 education, and higher education sectors. His designs have garnered
multiple awards and he is widely recognized for his thought leadership on sustainability. Brad earned his Bachelor's
Degree from Yale University and a Master's of Architecture from Columbia University. Learn more about TDA at
www.thendesign.com.
Critchfield, Critchfield &
Johnston announces that
the Cleveland Engineering Society elected Ralph Streza to its Board of Directors. CES connects northeast Ohio's engineering community. "In what I do,
engineers help me to explain how things
work," said Streza. Streza practices in
CCJ's Medina office and focuses his
practice in the areas of product liability &
safety among others. Best Lawyers
2016 most recently recognized Streza in
the area of Product Liability.
Liberty Bank
Liberty Bank is pleased
to announce the addition
of Mitch Kendall to its Commercial Banking team. Kendall has 13 years of banking and business lending experience,
specializing in SBA lending.A graduate of
Kent State University, Kendall helps Ohio
businesses grow by facilitating business
finance.Liberty Bank is a Preferred SBA
Lender which ensures an expedited loan
process. To learn more, visit
libertybankna.com
For more information
or questions regarding
advertising in this
section, please call
Lynn Calcaterra at
216-771-5276
or email:
[email protected]
20160620-NEWS--26-NAT-CCI-CL_--
PAGE 26
6/17/2016
11:12 AM
Page 1
REAL ESTATE
Phone: (216) 771-5276
Contact: Lynn Calcaterra
E-mail: [email protected]
AUCTIONS
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Two well-established medical
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20160620-NEWS--27-NAT-CCI-CL_--
6/17/2016
11:09 AM
Page 1
The List
HIGHEST PAID CEOS
Ranked by 2015 Compensation
EXECUTIVE (AGE)
COMPANY
TOTAL COMPENSATION
2015
2014
% CHANGE SALARY
1
Richard J. Kramer (51)
Goodyear Tire & Rubber Co.
$19,307,800
$17,853,097
8.1
2
W. Nicholas Howley (63)
TransDigm Group Inc.
$12,674,856
$30,245,400
3
Lourenco Goncalves (57)
Cliffs Natural Resources Inc.
4
CHANGE IN
PENSION
VALUE (1)
COMPANY
NET INCOME
ALL OTHER
IN 2015
COMPENSATION (MILLIONS)
BONUS
STOCK
AWARDS
OPTION
AWARDS
NONEQUITY
INCENTIVE
PLAN
$1,100,000
$0
$2,052,344
$2,940,000
$11,577,753
$1,535,672
$102,031
$307.0
(58.1)
$1,085,000
$0
$0
$11,574,156
$0
$0
$15,700
$466.6
$11,113,808
$9,477,142
17.3
$1,200,000
$0
$6,177,499
$1,440,947
$2,073,600
$133,502
$88,260
($749.3)
Charles E. Jones (2) JR. (59)
FirstEnergy Corp.
$10,024,119
$4,791,069
109.2
$1,118,558
$0
$5,995,031
$0
$1,807,812
$1,076,244
$26,474
$578.0
5
Thomas L. Williams (3) (56)
Parker Hannifin Corp.
$9,496,922
$6,162,409
54.1
$857,667
$0
$4,718,462
$1,745,870
$1,242,322
$769,731
$162,870
$842.8
6
Andreas W. Mattes (54)
Diebold Inc.
$9,391,174
$6,767,937
38.8
$928,418
$0
$6,271,703
$1,408,680
$459,375
$0
$322,998
$73.7
7
Matthew A. Ouimet (57)
Cedar Fair LP
$9,291,314
$11,561,569
(19.6)
$961,840
$0
$6,587,006
$0
$1,668,600
$0
$73,868
$112.2
8
Edward F. Crawford (75)
Park-Ohio Holdings Corp.
$7,252,279
$7,597,040
(4.5)
$750,000
$0
$2,923,200
$0
$3,379,203
$0
$199,876
$48.1
9
Beth E. Mooney (60)
KeyCorp
$6,994,704
$7,124,566
(1.8)
$1,038,462
$0
$3,599,983
$399,997
$1,900,000
$4,987
$51,275
$916.0
10
Frank C. Sullivan (54)
RPM International Inc.
$6,675,601
$7,359,162
(9.3)
$940,000
$0
$2,499,062
$2,146,000
$900,000
$65,192
$125,347
$329.8
11
Richard G. Kyle (49)
The Timken Co.
$6,643,770
$8,165,009
(18.6)
$900,000
$0
$2,994,254
$1,295,954
$453,600
$837,000
$162,962
$70.8
12
John G. Morikis (4) (52)
Sherwin-Williams Co.
$6,010,399
$4,203,888
43.0
$877,054
$0
$1,715,340
$2,234,465
$913,000
$0
$270,540
$1,053.8
13
Michael F. Hilton (61)
Nordson Corp.
$5,639,519
$5,494,106
2.6
$825,000
$0
$1,752,298
$1,425,589
$800,000
$761,474
$75,158
$209.4
14
David J. LaRue (54)
Forest City Realty Trust Inc.
$5,627,411
$3,731,126
50.8
$675,000
$0
$3,478,514
$0
$1,408,388
$10,710
$54,799
$496.0
15
Christopher L. Mapes (53)
Lincoln Electric Holdings Inc.
$5,335,973
$3,113,446
71.4
$903,221
$0
$1,138,408
$1,097,410
$2,146,573
$10,997
$39,364
$127.5
16
Peter T. Thomas (59)
Ferro Corp.
$5,061,275
$6,927,510
(26.9)
$890,590
$0
$2,144,187
$915,269
$820,600
$0
$290,269
$64.1
17
Paul G. Greig (59)
FirstMerit Corp.
$4,721,426
$4,917,636
(4.0)
$1,045,891
$0
$2,115,594
$0
$1,312,282
$0
$247,659
$229.5
18
Walter M. Rosebrough Jr. (61)
Steris plc
$4,503,893
$3,800,574
18.5
$800,000
$0
$909,840
$1,588,091
$1,108,000
$0
$97,962
$94.4
19
Marc A. Stefanski (61)
TFS Financial Corp.
$4,355,250
$4,425,278
(1.6)
$1,080,000
$0
$491,535
$1,161,739
$1,454,046
$49,982
$117,948
$73.8
20
Ward J. "Tim" Timken Jr. (47)
TimkenSteel Corp.
$4,188,490
$9,405,662
(55.5)
$865,200
$0
$2,169,200
$960,450
$0
$0
$193,640
($72.4)
21
Thomas M. O'Brien (48)
TravelCenters of America LLC
$3,932,970
$4,044,700
(2.8)
$300,000
$2,564,500
$1,068,470
$0
$0
$0
$0
$27.7
22
Alfred M. Rankin Jr. (74)
Nacco Industries Inc.
$3,876,986
$3,768,901
2.9
$576,604
$0
$1,112,360
$0
$1,291,993
$647,779
$248,250
$22.0
23
Richard J. Hipple (62)
Materion Corp.
$3,845,411
$4,581,254
(16.1)
$835,492
$0
$1,556,067
$534,452
$541,975
$372,025
$5,400
$32.2
24
Robert M. Patterson (42)
PolyOne Corp.
$3,725,576
$6,476,126
(42.5)
$854,615
$0
$918,480
$930,020
$879,622
$0
$142,839
$144.6
25
Matthew E. Monaghan (5) (47)
Invacare Corp.
$3,596,335
N/A
N/A
$562,500
$0
$2,390,778
$0
$562,500
$0
$80,557
($26.2)
26
Neil A. Schrimsher (51)
Applied Industrial Technologies Inc.
$3,448,702
$3,149,849
9.5
$820,000
$0
$1,465,692
$356,636
$651,572
$0
$154,802
$104.9
27
Robert G. Ruhlman (58)
Preformed Line Products Co.
$3,360,466
$3,362,257
(0.1)
$763,380
$0
$1,715,144
$0
$572,535
$0
$309,407
$6.7
28
Samuel F. Thomas (63)
Chart Industries Inc.
$2,954,168
$3,994,358
(26.0)
$775,000
$0
$917,000
$1,116,315
$0
$0
$145,853
($203.0)
29
Kevin M. McMullen (54)
Omnova Solutions Inc.
$2,953,789
$3,088,035
(4.3)
$769,000
$0
$1,548,696
$0
$573,000
$0
$63,093
($15.7)
30
Alfred M. Rankin Jr. (74)
Hyster-Yale Materials Handling Inc.
$2,807,331
$3,463,700
(18.9)
$844,900
$0
$665,124
$0
$958,893
$36,577
$301,837
$74.7
31
David J. Oakes (37)
DDR Corp.
$2,695,407
$2,292,538
17.6
$591,875
$0
$1,159,568
$219,850
$676,400
$0
$47,714
($72.2)
32
R. David Banyard (6) (46)
Myers Industries Inc.
$2,540,293
N/A
N/A
$39,231
$500,000
$2,000,024
$0
$0
$0
$1,038
$17.8
33
Bernard Rzepka (7) (55)
A. Schulman Inc.
$2,327,619
$1,414,384
64.6
$652,737
$0
$1,138,473
$0
$516,821
($28,053)
$47,641
$23.0
34
Chris A. Raanes (50)
ViewRay Inc.
$1,846,325
$826,724
123.3
$415,000
$0
$0
$1,317,200
$114,125
$0
$0
($45.0)
THIS
YEAR
COMPANY
NET INCOME
% CHANGE
FROM 2014
-87.5
47.5
89.6
93.3
-22.7
-35.6
7.7
5.5
1.8
49.7
-141.5
21.7
-17.8
6,631.2
-50.0
-25.5
-3.6
-28.8
11.0
-169.4
-54.5
157.7
-23.7
82.6
53.3
-11.8
-48.1
-347.9
-321.1
-32.0
-161.5
304.6
-50.5
-33.1
RESEARCHED BY DEBORAH W. HILLYER
Source: Numerical information provided by S&P Global Market Intelligence, www.spcapitaliq.com. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or
accurate. (1) Change in Pension Value and Nonqualified Deferred Compensation (2) Jones named president, CEO on Jan 1, 2015. (3) Williams named CEO Feb. 1, 2015. (4) Morikis became CEO on Jan. 1, 2016. (5) Monaghan named
CEO April 1, 2015. (6) Banyard became CEO Dec. 7, 2015. (7) Rzepka became CEO Jan 1, 2015.
20160620-NEWS--28-NAT-CCI-CL_--
6/17/2016
11:09 AM
Page 1