Region is producing different types of docs
Transcription
Region is producing different types of docs
20150323-NEWS--1-NAT-CCI-CL_-- 3/20/2015 2:19 PM Page 1 $2.00/MARCH 23 - 29, 2015 Loan for historic 55 Public Square building, with three unoccupied floors, is sold for large loss — P. 4 Local businesses have found loyal audiences — and those with money to burn — via podcasts — P. 5 He’s game for anything Indians’ director of in-game experience has a lot of ideas, and a ‘crazy’ résumé By KEVIN KLEPS [email protected] MCKINLEY WILEY Leland Patton, who joined the Cleveland Indians in 2014, previously worked for a pair of NBA teams. Leland Patton has had what he calls a “crazy life.” Prior to joining the Cleveland Indians in February 2014 as the director of in-game experience, Patton directed a 5,000-performer wine festival in Switzerland, led theater and opera productions on and off Broadway, and worked for the Sacramento Kings and Miami Heat. The soon-to-be 48-year-old says professional sports compare in some ways to ancient Greek theater because the crowds respond to the on-court or on-field action. But instead of comedy or tragedy, Patton’s previous job — a nearly sixyear tenure as the producer of The Heat Experience — called for nonstop theatrics, pulsating sound and plenty of pyrotechnics. That seems about as different to Major League Baseball as the Heat’s roster with and without LeBron James. “Obviously, it’s a much lighter, historical experience. There isn’t as much intensity,” Patton said of baseball. “It’s not like the NBA, where it’s this aggressive, assaultive entertainment. “I call it the 2-by-4 school,” he continued. “You hit someone over the head, and that’s kind of what the experience is like. It’s great, it’s fun, but baseball I think is more of a kinetic experience.” And it might be the best outlet yet for Patton’s diverse skill set. The Indians’ 21-year-old home is the 11th-oldest in MLB. Prior to this See GAME, page 19 Region is producing different types of docs By TIMOTHY MAGAW [email protected] 12 Given the desperate need for primary care docs as health care access expands under the Affordable Care Act and the horde of aging baby boomers requires more hands-on care, a lesser-known form of medical education is taking root in Northeast Ohio. The region has long produced Simply put, DOs tend to focus on treating the whole patient, not just their symptoms. They also tend to focus less on research and gravitate toward careers in primary care. “We take care of people, not problems,” said Dr. Robert Juhasz, president of Cleveland Clinic’s South Pointe Hospital in Warrensville Heights and head of the American Osteopathic Association. “We believe in taking care of the whole person — body, mind and spirit. We believe in enhancing the body’s innate ability to heal itself.” Leading the teaching charge regionally is Ohio University, whose Heritage College of Osteopathic Medicine has been on a tear over the last few years expanding beyond its Athens headquarters. Last year, for one, it opened a $24.7 million campus in Dublin, Ohio, and this summer plans to open a new outpost in 60,000 square feet of renovated space at South Pointe. This summer, the Clinic collaboration — one valued at about $49.1 million — will welcome its first class of 50 students, 18 more than originally expected. Moreover, Erie, Pa.-based Lake Erie College of Medicine, or See DOCS, page 21 7 ALSO INSIDE: NEWSPAPER 74470 83781 0 MDs — short for the Latin phrase “medicinae doctor” — at its venerable medical schools, Case Western Reserve University and Northeast Ohio Medical University. But soon, the region will be churning out more DOs, or doctors of osteopathic medicine. It’s not a new form of medical education, given that its roots go back more than a hundred years, but it is different. SPORTS BUSINESS There are high expectations for the Indians, and a renovated home to drive sales ■ Pages 14-18 PLUS: CHARGING STRONG ■ GLADIATORS’ SUCCESS ■ & MORE Entire contents © 2015 by Crain Communications Inc. Vol. 36, No. 12 20150323-NEWS--2-NAT-CCI-CL_-- 3/19/2015 3:02 PM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY ASK THE EXPERT 0Z4`)\ZPULZZ;VV:THSS[V6\[ZV\YJL 0;:\WWVY[HUK:LY]PJLZ& Many small business owners think outsourcing is just for bigger companies, but choosing to let professionals handle your IT support and services can be a wise decision for any small business owner. It is a great option if you are at that point in your business where you need to be focused on your goals rather than the dayto-day functions of your business. IT support and services run the gamut from design and installation of new networks, advice on technology upgrades, onsite support for tech issues and remote troubleshooting, to more technically demanding services like virtualizations, security implementation, and KH[H YL[LU[PVU JVTWSPHUJL :VTL ILULÄ[Z VM outsourcing IT include: Time Savings – As small business owners we wear many hats, but technology is advancing Insourcing? If you’re looking to hire IT talent in-house instead, check out the Linking IT Talent to Opportunity event during Tech Week on 4/16 (www.gcpartnership.com). at such a rapid pace it can be extremely time consuming to stay knowledgeable. On Demand Services – Outsourcing is often TVYLJVZ[LLJ[P]L[OHUOPYPUN4HU`ZTHSS[V medium-sized businesses don’t require full time IT support. Outsourcing allows you to call only ^OLU `V\ ULLK OLSW" RLLWPUN ZHSHY` ILULÄ[Z and overhead costs down. Filling the Gaps – Even if you currently have in-house IT support, you may need supplemental help at times. In-house support Z[HJHU»[ILL_WLY[ZH[L]LY`[OPUNHUKJLY[HPU projects may be out of the realm of their L_WLY[PZL6\[ZV\YJPUNPZHNYLH[^H`[VÄSS[OL gaps or help complete large-scale projects. Small businesses often feel that they are too small to outsource IT services, but the decision to do so should be based on the function and needs of the company, not the size. When choosing a technology consultant to partner with, referrals are always the best place to start your search; people do business with people they trust. When you outsource IT services, you are giving someone the keys to the kingdom, March 23 By The Numbers Go Green on Your Lease SAVE UP TO so be sure you choose professionals that understand your technology and goals, and can be a true partner in helping you achieve success in your business. ‘‘ ‘‘ PATTY ZINN, CEO, Micro Systems Management i 3VVRPUN[VÄUK0;Z\WWVY[MVY`V\YI\ZPULZZ& *OLJRV\[5,6:(»ZKPYLJ[VY`VMSVJHS0;[HSLU[ =PZP[^^^ULVZHVYNHUKZLSLJ[0;+PYLJ[VY` 52 TIPS FOR YOUR BUSINESS 13% Green leases can reduce utility spend up to 13% from easy-to-implement sustainable measures built into their leases. SOURCE: JONES LANG LASALLE (2013) #12: Do Your Homework When Hiring a Consultant When choosing a consultant to partner with, personal referrals are always the best place to start your search. Talk to one or more of your trusted connections to gain valuable insight on a consultant’s reputation and track-record. “People do business with people they trust,” says Zinn. Every consultant will have a sales pitch, it’s up to the entrepreneur to do their OVTL^VYRHUKÄUKV\[PMV[OLYZJVUZPKLY[OLJVUZ\S[HU[[VIL HUL_WLY[PU[OLPYÄLSK i For more information on outsourcing and hiring consultants, visit www.cose.org/smallbizmatters. Or, check out Linktunity, an online tool that can connect you with local IT experts at www.linktunity.com. TECH THURSDAY THURSDAY, MARCH 26 )LZ[)LULÄ[Z+LJPZPVU0,]LY4HKL¯ “Joining COSE’s group-rated Workers’ Comp Program has helped me in my business in so many ways. Not only has COSE saved me money on premiums, but they understand T`ULLKZHUKJHUÄNO[MVYTLIL[[LY[OHUHU` other program. I’m not just another number among many other businesses to them. 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He has encountered a few bumps along the way, ^P[O UL^ HUK KPLYLU[ JOHSSLUNLZ MVY LHJO new operation, and relied on COSE’s workers’ comp team to help him navigate the obstacles. group-rated Workers’ Compensation Program, visit www.cose.org/workerscomp. Connection Calendar Networking Event - Talk tech, make great JVUULJ[PVUZHUKLUQV`ZVTLÄULHK\S[ beverages. SMALL BUSINESS EXCHANGE i To get a free quote on COSE’s For more information about green leasing, visit www.cose.org/smallbizmatters. COFFEE WITH COSE A group discussion and networking event for small business owners. TUESDAY, APRIL 7 8:30 – 10 AM, FREE Panera, North Olmsted Eric Williams, Owner, Momocho and El Carnicero Employees: 166 CONTENT PROVIDED AND PAID FOR BY THE COUNCIL OF SMALLER ENTERPRISES Register at www.cose.org/events Check out www.cose.org/events for all the latest happenings. 20150323-NEWS--3-NAT-CCI-CL_-- 3/20/2015 2:15 PM Page 1 Total eclipse of the sun, Svalbard, Norway. 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LEXUS BMW CADILLAC WILLOUGHBY HILLS 800 525 7594 WILLOUGHBY HILLS 888 439 8833 MENTOR 440 255 6955 Offers end 3/31/2015 CLASSIC DRIVECLASSIC.COM 20150323-NEWS--4-NAT-CCI-CL_-- 4 3/20/2015 1:26 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 )25/($6( ,1'8675,$/2)),&(:$5(+286(63(&%8,/',1* 3,12$.3$5.:$<$921/$.(2+,2 6)RIRIÀFHZDUHKRXVH VSDFHDGGLWLRQDO6) SRWHQWLDOO\DYDLODEOH ·FOHDU7ÁXRUHVFHQWOLJKWLQJ (6)5VSULQNOHUV\VWHP ·[·WUXFNGRFNV $EXQGDQWSDUNLQJ 1HZFRQVWUXFWLRQORFDWHGZLWKLQ PLQXWHVRI,5RXWH Visit TerryCoyne.com Or call Terry at 216.453.3001 1350 Euclid Ave., Suite 300 Cleveland, Ohio 44115 “ROI is a CLASS ACT. Our job was done on schedule with no interruption to our production. It is truly a pleasure dealing with a company who delivers what they promise! Our employees and customers love the new, brighter environment!” Dave Margiotta, President AGS Custom Graphics, An RR Donnelley Company Macedonia, Ohio Call ROI Energy today for your no obligation analysis 330-931-3905 • www.ROI-Energy.com • Serving NE Ohio Volume 36, Number 12 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-8249373. REPRINT INFORMATION: 212-210-0750. Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to [email protected], or call 877824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. STAN BULLARD The mortgage for the 22-floor 55 Public Square office building changed hands on March 3. Loan for 55 Public Square is sold for $12 million loss Historic office building has three floors that are unoccupied By STAN BULLARD [email protected] Another story may be starting to take shape at the 22-floor office building at 55 Public Square after the mortgage that Miami-based Optima Management Co. used to buy it changed hands. The 55 Public Square Holdings LLC, which lists to the New York City address of Triangle Capital Group in Ohio corporate records, became the lender for the property on March 3, according to a document filed with the Cuyahoga County Fiscal Office. The filing does not show how much 55 Public Square paid for the $20 million remaining balance of the $22 million note that was sold by CW3 Asset Servicing, a New York-based firm that provides special servicing for distressed securitized loans. However, Trepp, a New Yorkbased consultancy that provides data on sales of nonperforming securitized loans, reports that the loan was sold for $7 million, or a loss of almost $12 million, on the remaining balance of the loan. Sean Barrie, a Trepp research associate, said such sales occur when the special servicer decides a liquidation sale is the course of action that returns the most money to holders of the mortgage notes. The new owner of the mortgage may stand pat, renegotiate the mortgage or pursue a foreclosure proceeding to gain ownership of the property. It’s a scenario expected to grip multiple commercial property owners as securitized loans issued before the Great Recession come due and owners cannot find takeout financing to replace the matured loans. The 424,000-square-foot 55 Public Square building has nearly 160,000 square feet of empty offices, according to LoopNet, an on- CORRECTION line realty data provider, although brokers informally put the number at 150,000 square feet because of pending deals Optima has in the works. Three floors in the building are empty, according to Optima’s website. However, 55 Public Square might have been expected to be the recipient of the biggest change in the dynamic of older class B and C buildings in decades in downtown Cleveland. Multiple tenants will be looking for new suites following the sale of five older office buildings the last two years for conversion — in whole or part — to apartments. The building also occupies a significant place in the city’s history. When constructed in 1958, it was Cleveland’s first office building constructed with air conditioning, which ushered in the modern office building era, according to Tom Gustafson, a principal at Colliers International’s Cleveland office. Although 55 Public Square might gain tenants from the apartment action, Gustafson said, “In my opinion, I don’t think there are enough tenants to make a huge dent in that amount of space. “ Moreover, the building is likely to need an infusion of capital to compete for low-rent tenants. Douglas Leary, a CBRE Group senior vice president, said the attached garage owned by Optima — typically a plus for wooing tenants — is in such disrepair he had one tenant drop consideration of the building as soon as he saw it. He would not identify the prospective tenant. The vacancy level also makes the building a candidate for potential conversion to apartments. As it is more than 50 years old, 55 Public Square is old enough to be eligible for federal and state historic preservation tax credits that have been crucial to the rise of residential living downtown, according to Tom Yablonsky, executive vice president of Downtown Cleveland Alliance. Yablonsky said it might qualify for historic tax credits as a midcentury modern office building, but winning such a designation requires detailed studies. Residences at 1717, which was converted to apartments from offices at 1717 E. Ninth St. in a project using tax credits, went up in 1959. The building adjoining 55 Public Square — the 75 Public Square office building — was purchased this year by an affiliate of Valley View-based Millennia Properties Co. for future conversion to apartments. Yablonsky noted suites on the square will benefit from the recently launched renovation to make Public Square a more park-like, people-friendly public space. Chaim Schochet, Optima’s investment executive who oversees its Cleveland operations, did not return four calls on the note sale or the building. An executive at Triangle Capital who refused to give his name declined comment on the note purchase. Triangle Capital’s website says its focus is on commercial real estate debt. Triangle’s site says it has bought more than $400 million of debt and equity and controls more than $750 million of commercial real estate. When Optima paid $34 million for 55 Public Square in 2008, it was the second building that Miamibased Optima bought in Cleveland in a buying binge that gave it, through various companies, ownership of four downtown properties. Those holdings include the 925 Euclid Ave. building, formerly known as the Huntington Building, and One Cleveland Center and Penton Media Building, which occupy two corners at East Ninth Street and St. Clair Avenue East. One of the first events at Stillwater Place at the Cleveland Metroparks Zoo will be a wedding on Friday, June 26. An incorrect date was provided for a story that appeared in the March 16 issue. 20150323-NEWS--5-NAT-CCI-CL_-- 3/20/2015 3:01 PM Page 1 MARCH 23 - 29, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 LISTEN UP: PODCASTS HIT RIGHT NOTES Northeast Ohio companies find format to be one that reaches target audiences By CHUCK SODER [email protected] Every week or two, Phil Waters gets together with his buddies to drink beer and talk about vintage motorcycles. They swear. They goof off. And they entertain thousands of people listening via the Internet. Some of those people become extremely loyal customers — the type who are willing to buy a motorcycle from a store in another state. This is the power of having a podcast with a loyal following. ClevelandMoto is one of several local companies that have such a following. Or aim to build one. Expect more companies to follow their lead. Podcasts have become a lot more popular lately — and the people who listen to them tend to be highly educated and highly paid, according to a recent study by Edison Research and Triton Digital. A few people who spoke with Crain’s added “highly engaged” to that list. For instance, during a busy week at ClevelandMoto’s stores in Lakewood and Mentor, Waters, the owner, might run into seven or eight customers who mention the podcast. And last year, he estimates that fans outside Northeast Ohio probably bought 15 motorcycles. Not to mention the T-shirts and stickers. “When they’ve been listening to you for three or four years, they’re telling you stories you’ve forgotten,” he said. Granted, only 33% of Americans over the age of 12 have ever listened to a podcast, according to the 2015 Infinite Dial study. But that percentage increases almost every year. And that number goes up to 52% for people who make at least $100,000 per year. Of the 300-or-so respondents who make that much money, 17% said they listened to a podcast during the previous week — a figure that falls as income drops. They’re probably not just listening to one podcast, either: The average weekly listener tunes in to six episodes per week, according to an online presentation given by Tom Webster, vice president of strategy and marketing for Edison Research. “Once you have the podcast consumption bug, you listen to a lot of podcasts,” he said. Something to believe in Why are the numbers going up? Because listening to podcasts is getting “easier and easier and easier,” according to Dave Jackson, a Rocky River resident who runs a part-time podcasting consulting business called the School of Podcasting — which also is the name of one of his podcasts. Ten years ago, if you wanted to listen to a podcast, you had to download it to your computer and then sync that computer with your iPod or another audio player. Now, See PODCASTS, page 9 ACOs aren’t as profitable, but are becoming norm By TIMOTHY MAGAW [email protected] A growing movement to reward organizations that provide highquality, coordinated care at a controlled cost is changing the way local health care systems — and even some commercial insurers — care for and interact with patients. In the wake of the Affordable Care Act, Northeast Ohio’s health systems embraced the concept of accountable care organizations, or ACOs, to varying degrees. While University Hospitals and Summa Health System seemingly went all in on the concept early on, Cleveland Clinic was anything but eager to embrace experimental payment models that had the potential to hurt its revenue streams. But just last month, the Clinic quietly announced it had entered into Medicare’s shared savings program, perhaps the most wellknown ACO program. UH and Summa had been involved from the start, with MetroHealth joining the fold shortly thereafter. And while all of their approaches have been different, they agree this model isn’t going away anytime soon. By 2018, for one, the feds would like to see half of Medicare spending in some sort value-based contract. That’s a far cry from the current model, which mostly pays out based on how many services are rendered. “An ACO in of itself is not a money maker,” said Dr. William Steiner, interim president of UH’s accountable care organization. “Even if you do great, you’re still getting less money than the oldfashioned way,” Steiner said. “We’re looking at how to do this correctly, build an infrastructure and fine-tune it. We’re looking ahead to the days when probably all medical payments are going to go this way.” Good accounting Today, UH is one of the largest accountable care providers in the country, serving more than 250,000 self-insured, commercially insured, Medicare and Medicaid members and their beneficiaries. Over the last few years, the health system has hired a few dozen patient navigators to help its ACO patients navigate the complex health care system. It also has invested heavily in analytics — something previously only embraced by insurers — that allow docs to identify high-cost patients that require more intense intervention. As for why UH jumped in so early, Steiner said UH was more interested in “driving the bus, rather than getting run over by it.” The efforts appear to be paying off, according to Steiner, an internist by trade who still sees patients. The health system launched an ACO that encompassed its 25,000 employees, spouses/same sex partners and dependents enrolled in a UH medical plan. By more intensely managing their care, UH kept premiums flat for several years and when increased, Steiner said the hike was well below the rest of the market. Also, as part of the Medicare ACO, UH’s spend on Medicare patients came in slightly below its target in the first year of operation, and it met the federally dictated quality targets. That said, UH didn’t reduce the cost of care for Medicare patients quite enough to share in any savings with the feds. As part of the shared savings programs, if health systems reduce spending beyond a certain sliding threshold, they share in 50% of the generated savings with the government. UH should learn later this See ACOs, page 22 20150323-NEWS--6-NAT-CCI-CL_-- 6 3/20/2015 1:10 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 SOLD - Retail Building 25575 Aurora Rd., Bedford Hts., OH For all your commerical real estate needs, please contact: Gregory B. West 216.861.5379 TED RIOLO David Horowitz 216.861.5931 HannaCRE.com Take the Path Toward Advanced Leadership Through Weatherhead’s Leadership Deep Dive program, advance your senior leadership skills while applying teachings to personal compelling problems of practice. 2015 LEADERSHIP DEEP DIVE T H E L E A D E R S H I P D E E P D I V E P R O G R A M I S C U R R E N T LY O F F E R E D I N : Cleveland Sydney Dubai Auckland Session 1: June 9–11 Session 1: July 14–16 Session 2: August 18–20 Session 2: Sept 19–Oct 1 Session 1-3: 2016 DATES TBD Session 1-3: 2016 DATES TBD Session 3: October 13–15 Session 3: November 17–19 For additional information on program faculty or application materials, please visit: weatherhead.case.edu/deepdive Motorcars is expanding, and much more efficient Company’s Honda dealership spending $1.7M on solar panels By RACHEL ABBEY McCAFFERTY [email protected] When the new solar array at Motorcars Honda in Cleveland Heights is complete, the Mayfield Road dealership will be able to provide for about 70% of its energy needs, said general manager and co-owner Trevor Gile. Not only that, but the emissions released by new cars sold by the dealership will be totally offset by the panels’ output for the next seven to nine years, Gile said. Motorcars is in the midst of a big overhaul at its Honda dealership at 2953 Mayfield Road in Cleveland Heights. The company is investing $6 million into the dealership, with about $1.7 million going to the solar panels. The solar panel investment is eligible for a 30% federal tax credit. The frame for the solar array, which was designed by Athens, Ohio-based Dovetail Solar and Wind, is made entirely from recycled steel. Since the Honda dealership is not near highways, it’s more of a “destination dealership,” Gile said — and in order to grow, it needs to appeal to a niche market, like the environmentally savvy crowd. The common thread that runs under everything Motorcars does is, as its motto puts it, its desire to create “customers for life.” The company knows it’s going to be competitive on price, Gile said, but the “difference-makers” are the amenities it can offer. Motorcars Cleveland is a family-run business, comprised mainly of the Honda dealership, a Toyota dealership and a body shop, all in Cleveland Heights; a service center in downtown Cleveland; and two Rainforest car washes — one in Cleveland Heights and one in Brunswick. The dealerships, which are across the road from one another, typically have 150 to 200 used cars on the grounds at any time, plus about 250 to 300 new Honda vehicles and 200 to 250 Toyota vehicles, Gile said. As part of the in-process expansion, Motorcars Honda also is installing a digital assembly line that could speed up services like oil changes and tire rotations. The line will include what looks like two electric walkways that pull the vehicle through six stops, Gile said. At each stop, the vehicle can be lifted up for work, while customers can follow along through TV screens. There will be multiple service options at each stop. Gile said the company always has taken the approach that “service is what makes us successful.” Other planned updates for Motorcars Honda include a children’s play area and a lounge for customers with fireplaces and a patio. The upgrades began in November and should be completed in September or October. The solar panels, which will also serve as a roof for a 95-vehicle showroom, should be installed by the end of April or beginning of May, Gile said. With the dealership’s proximity to multiple medical centers, Motorcars also thought it was a good idea to partner with AMS Vans Inc. and Mobility Ventures LLC to provide costcompetitive mobility devices with wheelchair access. The partnership, called Motorcars Mobility, offers new or pre-owned vehicles, as well as services for the wheelchair accessible vehicles. That business began less than six months ago, though Motorcars plans to move the store after renovating a new facility for it, Gile said. Seeing the light Motorcars supports the community and sees itself as an important part of it, said vice city manager Susanna Niermann O’Neil. In the past 10 years, the dealership has served as a sponsor for summer performing arts venue Cain Park, promoting it and providing shuttle service for big events. It even sponsored an Ameri- can Idol-style competition called “Heights’ Got Talent,” O’Neil said. It also has sponsored youth baseball teams in the past, served as a sponsor for the Gay Games and actively supports the city’s nonprofits. “They’re not just a business,” O’Neil said. “They’re a community partner.” And the company’s environmental focus is a good fit for a business located in Cleveland Heights. “It’s the city of trees,” Gile said. The solar panel installation is inspiring the dealership to take more green steps, Gile said. The dealership is in the process of switching all of its lighting to LEDs, and it will even offer bicycles as an alternative to rental cars, starting this spring. This commitment to being environmentally sustainable isn’t just a focus locally. Since 2012, Honda Motor Co. has had a national “Green Dealer” program, which encourages dealerships to make measurable reductions in outputs like energy usage and awards those that do, like Jack Matia Honda in Elyria. Honda’s main motivation behind the program was its commitment to reducing CO2 emissions, said Raminta Jautokas, Honda environmental leadership program manager. When looking for a resource to share with the dealerships, Jautokas said the company came up empty-handed. “Dealerships are really unique environments,” she said, noting that they range from service shops to showrooms. So, the company created its own guide, which it released last year. The guide is available to Honda dealerships, but the company has also made it publicly available on its website. The company developed the guide because it saw a need, said Matt Sloustcher, assistant manager for corporate affairs and communications, and found the societal benefits of sharing it far outweighed the competitive advantage. 20150323-NEWS--7-NAT-CCI-CL_-- 3/20/2015 1:11 PM Page 1 MARCH 23 - 29, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 PHOTOS: TED RIOLO; RENDERING Motorcars Honda in Cleveland Heights is investing $6 million into the dealership, of which about $1.7 million will be spent on solar panels. A rendering of the finished site is above. McDonald Hopkins Business Hour Featuring Thursday, March 26, 2015 Noon to 1:00 p.m. McDonald Hopkins LLC Fifth Third Center, 600 Superior Ave., East, Suite 2100, Downtown Cleveland A Business Banking Solution that works for you. Register at mcdonaldhopkins.com or call: 216.348.5400. Business Solutions Checking with Interest McDonald Hopkins LLC 4VQFSJPS"WF&BTU4VJUF$MFWFMBOE0)t Carl J. Grassi, President Shawn M. Riley, Cleveland Managing Member $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI mcdonaldhopkins.com Does your parking lot look like this? Then it’s time to make a call to: 800.PAVE.NOW )HDWXUHVDQGEHQHÀWVRIRXU Business Solutions Checking with Interest account: • 250 free items (checks and deposited items) per month1 • Free Executive 50 check package or 30% credit towards any other check package2 • Online banking and bill pay • Free ATM/Visa® check card • Telephone Banking • Detailed statements – go paperless with e-Statements Ask about our enhanced Business Solutions Relationship Banking program. myNYCB.com • (877) 786-6560 Quality and Excellence in Asphalt Paving Since 1939 • • Asphalt Paving • Pavement Milling Pavement Marking • Hot Mix Production Facility • Concrete and Excavating Services www.RonyakPaving.com 1 Applies to Business Solutions Checking and Business Solutions Checking with Interest only. For Business Solutions Analysis Checking and Business Solutions Analysis Checking with Interest fees may be offset with an earnings credit. 2 30% credit does not apply to Business Value Pack. Offer may be withdrawn at the discretion of the bank at any time. The bank is not responsible for typographical errors. 20150323-NEWS--8-NAT-CCI-CL_-- 8 3/20/2015 2:42 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 Concord buying into plan Eliot Ness’ estate says Township hopes to develop a five-acre, mixed-use district By STAN BULLARD [email protected] Although Concord Township is known for greenfields that are a magnet for new homes and hospital projects, and as the site of the Quail Hollow resort and country club, trustees of the Lake County community have embarked on a quest usually undertaken by landstarved, inner-ring suburbs. The township and the ConcordPainesville Joint Economic Development District, which markets the area, are conducting a request for proposals for real estate developers to undertake a town-center style, mixed-use district on the southwest corner of the I-90 interchange of state Route 44. Trustees hope to land interest in developing a five-acre site, which may be expanded later by as much as 33 acres that the township has options to purchase. Concepts would include first-floor retail, restaurants and upper-level offices, or housing such as townhouses with density typically associated with urban projects. The township bought a five-acre site on Capital Parkway for almost $1 million that is the proposed project’s first phase. It gave it the moniker “Capital District.” Nearly two miles south of the interchange, the proposed Capital District is off Auburn Road, but it will get enhanced access after the Ohio Department of Transportation extends Capital east to a new GOOGLE MAPS interchange on state Route 44 that also will include on its east side Crile Road. ODOT this year plans to bid the two-year road project, designed to ease traffic congestion in the area. Almost 10 years of planning have gone into this gambit for development by trustees. Kathy Mitchell, Concord Township administrator, said that as the community has developed, trustees hear more requests for neighborhood services it lacks, such as more restaurants — its current ones are packed — and even a Starbucks. “We’ve turned into a medical hub, but we don’t have a drugstore,” Mitchell said. “It’s mindboggling. We don’t want to have to always go to the community next door for things.” The plan also reflects a desire to concentrate such services in a smaller area rather than what’s likely to happen: a series of freestanding stores or strip centers on half-acre to three-acre parcels on nearby commercial streets. “We don’t want curb cut after curb cut,” she said. “This is more proactive. We cherish the fact we are a township and are semi rural.” Mitchell noted just 8% of the township’s land is zoned for commercial or industrial use, so its leadership wants to see the ground used to good effect. Robert Simons, a real estate expert and urban studies professor at Cleveland State University’s Maxine Goodman Levin College of Urban Affairs, is skeptical about the concept. “It’s location, location, location,” Simons said. “It’s not that special to me. They’re going to have to throw a lot of money at it. (Developers) are not going to be beating down the doors. Housing would make sense, but there’s nothing compelling to it.” Simons said he believes the site See CONCORD, page 22 ExactCare Pharmacy’s Prescription for Success: WORKING WITH ADP. ExactCare Pharmacy, a revolutionary pharmacy solution for individuals challenged with taking multiple medications, rapidly grew beyond the startup when they began to notice some unwanted side-effects. Payroll and Human Resource challenges were holding them back from focusing on their team, strategy and growth. The cure was working with ADP. This story is quite common for growing companies. If you find yourself bogged down in administration when you really should be focused on strategy, visit Beyond The Startup—a website dedicated to helping companies like yours find business advice, ideas and insights. beyondthestartup.com/exactcare ADP and the ADP logo are registered trademarks of ADP, LLC. Copyright ©2015 ADP, LLC it’s owed Diebold stock By ALLY MAROTTI Crain’s Chicago Business Legendary law enforcer Eliot Ness’ stock holdings may not be quite as untouchable as he was. The estate of Eliot Ness filed a lawsuit against North Canton-based Diebold Inc. in an effort to recover stock it says belonged to the legendary law enforcer. According to the lawsuit, which was filed March 9 in the U.S. District Court for the Southern District of Florida, Diebold issued Ness 50 common shares of stock valued at $5 each in 1948, when Ness was serving as CEO of the company. That stock has grown to more than 13,000 shares valued at more than $1 million, according to an estimate in the court filings. The Ness estate asked the court to determine its right to the stock and award it the unpaid dividends and interest. “This certificate goes way back to the time when Eliot Ness was the CEO of Diebold,” said John F. Bradley of Ft. Lauderdale-based Bradley Legal Group, an entertainment and celebrity attorney representing the Ness estate. The stock certificate “has its life and its value independent of the life of the owner, so it would pass to their heir the same way the car in a driveway or a painting on the wall would pass.” As the stock matured, Ness has worked his way into legend. Born and educated in Chicago, Ness reigned as a Chicago law enforcer during the Prohibition era, and as- sembled a crew known as “The Untouchables” credited for bringing down the gangster Al Capone. His stories have been depicted and fictionalized in television shows, movies and books. When Prohibition ended, he moved to Ohio to take on moonshiners in Appalachia with the Department of Treasury’s Alcohol Tax Unit, and later moved to Cleveland, according to the Department of Justice’s website. Ness served as CEO of Diebold, a company founded as a safe and lock maker, from 1944 to 1951, according to Diebold’s website. He died in Pennsylvania in 1957, with no heir but his wife, Bradley said. One of the claimants to the estate, Deb Hole of Plantation, Fla., recently recovered the certificate evidencing the stock and prompted Bradley to assemble Ness’ estate. Hole obtained the certificate from the estate of Winifred Higgins Knorr, who served as Ness’ secretary for a time, Bradley said. Bradley could not say when Hole obtained the certificate, but according to the lawsuit, Diebold’s stock agent, Wells Fargo, issued a statement in 2013 declaring the certificate invalid. Representatives from Diebold and Wells Fargo were not immediately available for comment. Diebold stock is traded publicly under the ticker DSD. The company posted $861.3 million in revenue during the fourth quarter of 2014, which was up 6.1% from the fourth quarter of 2013, according to the company’s website. Meet Brett! The Wizard of Magical Custom Network Solutions & our President Ethernet Internet Data Center Fiber Engineering & Consulting Brett knows the importance of delivering best-in-class network solutions while providing a steadfast commitment to customer service that is unrivaled within the industry. There’s more to your Network than just wires. See how Brett and the rest of the Everstream™ team can transform your business. visit everstream.net or call 216-923-2300 20150323-NEWS--9-NAT-CCI-CL_-- 3/19/2015 3:15 PM Page 1 MARCH 23 - 29, 2015 PODCASTS continued from page 5 all you have to do is open an app on your smart phone, pick a podcast and click play. You don’t have to download the audio. And iPhone owners don’t even have to download the app. The numbers should keep going up as cars become more connected to the Internet, Jackson said. The popularity of “Serial” isn’t hurting, either, according to Joe Pulizzi, founder of the Clevelandbased Content Marketing Institute. While on a flight back to Cleveland from Cancun in February, Pulizzi found himself sitting within earshot of two people listening to NPR’s serialized crime podcast, which has generated millions of downloads and lots of buzz since its release this past October. Pulizzi has a few listeners of his own: His podcasts have generated more than 200,000 downloads. And some of his listeners are pretty hardcore: In January, 92 people went back and downloaded the first episode of “PNR: This Old Marketing” — a podcast that the Content Market Institute started recording back in 2013. Many of those people are probably what Pulizzi describes as “the true believers.” They’re the people who CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM listen to episode after episode and really get to know the show’s hosts, Pulizzi and the institute’s chief strategist, Robert Rose. During the show, which has attracted sponsors, they spend about an hour talking about content marketing trends and news. “You can’t get engagement like that anywhere else,” he said. Now the institute is putting more effort into podcasting: In December, the company launched its second podcast, Content Inc., a shorter, scripted show where Pulizzi gives tips designed to help entrepreneurs figure out how to promote themselves through blogs and other content. And since October, the institute has helped three other content marketing experts launch their own shows through its new podcast network. Building rapport Other businesses are putting more effort into podcasting these days, too, especially solo entrepreneurs and small businesses — companies where the CEO is willing to host the show, Pulizzi said. For instance, he says a lot of authors have podcasts they use to promote their books. Jim Kukral takes it a step further. Last year, he launched two podcasts designed to help authors: The “Sell More Books Show” and the “Author Marketing Podcast.” They’re having the intended effect. Kukral said he gets an email from someone who listens to his podcasts two or three times per week. Many are potential customers for Kukral’s Author Marketing Institute, a Cleveland company that helps authors with the business side of writing. The podcasts give him a way to establish a rapport with potential customers before he even meets them. “It’s the No. 1 way to truly engage with a customer in today’s world,” he said. Evolution Capital Partners works to build a rapport with entrepreneurs through its podcast, “The Second Stage,” according to co-founder Brendan Anderson, who hosts the show with co-founder Jeffrey Kadlic. When the Beachwood-based private equity firm is looking to invest in a company, they’ll often tell the entrepreneur to listen to the podcast, which gives small business owners tips on how they can accelerate their growth. The show “breaks down the barriers” and shows people that Evolution Capital “is not just a private equity firm,” Anderson said. The show also gives them an excuse to get together and talk to interesting people, he said. Some big companies have podcasts, too. For instance, the Cleveland Clinic has dabbled in podcasting over the years, and one of its best-known doctors, Michael Roizen, hosts “YOU: The Owners Manual Radio Show” — a wellness podcast inspired by the book series he wrote with Dr. Mehmet Oz. Last year, when the Squire Sanders law firm acquired Patton Boggs in Washington, D.C., it also acquired the “Capital Thinking” podcast. During the show, partner Kevin O’Neill interviews company clients and lawyers about how news on Capital Hill will affect the business world. The show gives the law firm — now called Squire Patton Boggs — a way to establish itself as a thought leader on federal laws and regulations. The show was averaging about 20,000 downloads per month by the end of 2014. Of course, O’Neill has been at it for more than seven years. “You can’t treat it like a fad. You have to get into it for the right reasons and stick with it,” he said. Not everyone does. By searching Apple’s iTunes store — the most popular place to find podcasts — it’s not hard to find companies that have started podcasts only to stop recording them a few months later. Podcasters who spoke with Crain’s gave a few reasons why companies give up. Some don’t realize that it can take a few hours to prepare for a show, record it, edit it and post it online. Others fail to attract an audience — or expect one to materialize immediately. Pulizzi described one way companies can address both problems: Use material from the podcast to create blog posts, email newsletters — even books. That saves time and gives companies multiple ways to promote the content they create. Here’s another tip from Waters, of ClevelandMoto: Don’t create a show that’s just a boring ad for your company. “The second you start pitching the customer, they feel like they’ve been cheated,” he said. ClevelandMoto certainly had to make some adjustments when it first started podcasting. Waters and his friends used to record the show in a basement sound studio owned by a customer who just so happened to be an audio engineer. Now they do things the easy way: They record the show in a garage, with one recording device and four microphones. They don’t edit it at all. Sure, the audio isn’t perfect, but the show is better in at least one way, Waters said. “You can’t crack a beer in the studio,” he said. THE PULSE OF INNOVATION +6/&t".t$-&7&-"/%$0/7&/5*0/$&/5&3 The Affordable Care Act: Preparing for 2015 and Beyond Aaron Carroll, MD, MS CRAIN’S HEALTH CARE HEROES + FORUM t%JSFDUPSPGUIF$FOUFSGPS)FBMUI1PMJDZBOE1SPGFTTJPOBMJTN3FTFBSDI1SPGFTTPSBOE"TTJTUBOU%FBOGPS 3FTFBSDI.FOUPSJOHBU*OEJBOB6OJWFSTJUZ4DIPPMPG.FEJDJOF t)BTBQQFBSFEPO(PPE.PSOJOH"NFSJDBUIF$#4&WFOJOH/FXT"#$/FXT/PXBOE5IF$PMCFSU3FQPSU t*TBSFHVMBSDPOUSJCVUFSUP5IF6QTIPUBU5IF/FX:PSL5JNFT A Conversation with Northeast Ohio’s Health Care Leaders 1BOFM%JTDVTTJPO Akram Boutros, MD Brian Donley, MD Erin Hoeflinger Greg Moody Thomas F. Zenty III 1SFTJEFOU$&0 5IF.FUSP)FBMUI4ZTUFN $IJFGPG4UBò $IJFGPG$MJOJDBM&OUFSQSJTF $MFWFMBOE$MJOJD President, "OUIFN#MVF$SPTTBOE #MVF4IJFMEPG0IJP %JSFDUPS (PWFSOPST0óDFPG )FBMUI5SBOTGPSNBUJPO $&0 6OJWFSTJUZ)PTQJUBMT )&"-5)$"3&)&30&4"8"3%4-6/$)&0/50'0--08 TIERED TICKET PRICING AVAILABLE AT CRAINSCLEVELAND.COM/CRAINSHC PRESENTED BY MAJOR SPONSOR VIDEO SPONSOR 9 SUPPORTING SPONSOR 20150323-NEWS--10-NAT-CCI-CL_-- 10 3/19/2015 4:25 PM CRAIN’S CLEVELAND BUSINESS Page 1 WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Get it done The pomp and circumstance of President Obama’s visit to Cleveland is over and his City Club speech was, depending on your political point of view, a triumphant pitch for investment in the middle class or more justification for further government spending. The president was defending his policies, taking credit for his successes and, at the heart of it, delivering a stump speech for whatever Democrat seeks his seat in the 2016 presidential election in the city that will host the Republican National Convention. There weren’t many surprises, especially with the speech coming the day after House Republicans unveiled their budget plans. The president bashed trickle-down economics, and the GOP responded by ridiculing irresponsible governmental spending. But it’s not the speech or the talking points that linger. It’s the questions, during the traditional City Club Q & A. Obama was asked: “Since you have been in office, what has surprised you the most?” “What I talked about back in 2004 about this being the ‘United’ States of America, it really is true. Outside of Washington,” he said. “What has surprised me, even though I had served in the Senate, was the continued difficulties in Congress getting stuff done that shouldn’t be controversial.” Obama laid the blame on Republicans, but this isn’t the fault of one party; it’s the default in Washington. Infrastructure and other issues must be addressed and shouldn’t be controversial. Sadly, as the 2016 season ramps up, hope for progress instead of pettiness fades. Imagine if Washington actually worked together to “get stuff done” for Ohio’s businesses and citizens? That would come as a pleasant surprise. Let the light in Did you know that Sunshine Week just wrapped up? (And no, we’re not talking about a week when days with blue skies outnumber those with gray. But we admire your disposition.) Sunshine Week is an annual nationwide initiative, sponsored by the media, highlighting the importance of open government. But it’s not just the media who benefit from access to public records and elected officials. Most people who seek information from government agencies are everyday citizens and business owners — people like you. And that’s the way it should be. You have the right to know how government is spending your money and how decisions are made, from how contracts are awarded to who is teaching your children. The key to open government is transparency, accessibility and knowledge. We urge you to know your rights when it comes to public records. And we urge government officials to know what the law requires when conducting the public’s business, from what can and cannot be discussed behind closed doors to the importance of timely access to public records. Good government is government conducted in the light. And engaged citizens are citizens who aren’t in the dark. To assure both, we welcome the sunshine. FROM THE PUBLISHER Looking to the city for inspiration Some of America’s great brands have numbers as part of their names: 7UP, V8, 9Lives, Formula 409, 7-Eleven. Others are crafty enough to place a number on the end of their name as a way to brand their products: iPhone 6, Boeing 747, Levi’s 501. There is a certain magic that happens when you put a “Five” after “Jackson,” a “10” after “Oxy” or a “16” after “Grecian Formula.” That’s why we at Crain’s Cleveland Business are introducing “Crain’s 52.” (Actually, that’s not really why we’re doing it, but it’s a good story.) Last year, we launched a new list and event called Fast 50. It celebrated 50 of Northeast Ohio’s fastest growing companies. By all accounts, the inaugural attempt was a success, with 50 sizzling hot local companies getting the coverage, attention and recognition they deserved. (The top 10 companies on our list all enjoyed five-year annual revenue growth of above 230%!) But there was a bit of a problem. After launching nominations and borrowing the Fast 50 name from our sister Crain’s business publications in New York, Chicago and Detroit, we discovered that there was already a decades-old event celebrating the fastest growing companies in Lake and Geauga counties called the “Fast Track 50.” Rather than confusing things, we decided to rebrand our fledgling program. And like every curveball that gets thrown at a business, this was an opportunity. We had a chance to create something distinct, something memorable. But what should we call a ranking that seeks to honor and tell JOHN the stories of the CAMPANELLI shooting stars of local business? We looked up … at the Terminal Tower. Cleveland trivia buffs know our city’s iconic tower was for years the tallest building in North America outside of New York City and that it stands 52 sto- ries tall. Fifty-two stories. So with a nod to our city’s greatest landmark, we decided we’d not only create a list of the 52 fastest growing companies in the region, we’d also tell the 52 stories of their success. If you own, work for, work with or simply know of a company that’s not only experiencing exciting growth but wants the rest of the world to know about it, please take a moment, visit crainscleveland.com/Crains52 and nominate them to become part of the first Crain’s 52. Eligible companies need to be privately held, at least five years old and located in Northeast Ohio. They need to have enjoyed at least $2 million in revenue in 2014 and should not have experienced more than one year of declining revenue in the last five years. We are going to stick with the Crain’s 52 name (and hold our first Crain’s 52 celebration in early November). We believe our region’s businesses will embrace the concept of recognizing and learning more about the fastest growing businesses in Northeast Ohio — and embrace the connection with a landmark that symbolizes our historic (and future) strength. And while Crain’s 52 may never be as recognizable as other numeric brands like Fortune 500 or Century 21 or the Big Ten, we think we might have a shot to pass a few. Look out WD-40. TALK ON THE WEB Re: Eliot Ness estate sues Diebold Re: Renewable energy in Ohio Page 6 of the lawsuit above contains an error in item #38. “On or about August 15, 2015...”? It’s only March of 2015. I’m thinking they probably meant Aug. 15, 2013 (as was mentioned further down in the same item.) Nice proofreading before filing, Bradley Legal Group. — StewMcG Having been involved in renewable energy projects both in Ohio and the Northeast for almost 10 years, I saw the potential growth with great job creation opportunities — along with the great reduction in carbon emissions — as a benefit for everyone. With Senate Bill 310, we saw the end of this in Ohio. Why not give us the same subsidies that oil has gotten since almost 1917, and that coal is still getting? Put us on the same level playing field and watch us take off. I am one of them that saw all the projects that I was involved with disappear without much prospect of ever coming back, at least not in Ohio. The lobbying effort moved us from the top to almost the bottom of the pack! — Neil Dick 20150323-NEWS--11-NAT-CCI-CL_-- 3/19/2015 3:07 PM Page 1 MARCH 23 - 29, 2015 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 11 PERSONAL VIEW Millennials see with open eyes By CINDY SCHULZ By golly, Mr. Magoo. The way to inclusion in the workplace is in front of our eyes. And we can’t see it. Why, it’s the millennials! And that’s because years ago, the controversial notion of including children with developmental disabilities in regular education in public schools was born. My kindergartner, with a multi-handicapped label, was a student in one of Ohio’s pilot classrooms. It changed everything, not just for her and others with disabilities, but for all students, teachers and families fortunate enough to experience it. Inclusion started in the classroom, then quickly spread way beyond it, into scout troops, baseball teams, homecoming courts and now the workplace. Today, we can see that the inclusion movement changed a whole generation for the better, giving young people a life experience of the heart, one that older generations never had, unfortunately. As a result, millennials embrace Schulz is a communications and special needs consultant. She writes a motivational blog for parents who want their children with disabilities to live a wonderful life, and who won’t take no for an answer. Visit her blog at baloneymacaroni.com. differences, see capability where others see disability, and are comfortable living, working and playing together. They’ve been imbued with a different perspective. As one of my son’s friends observed, “When I got to college, I wondered where all the kids with special needs were. It felt strange being in school without them. I hope they’re doing OK.” A quarter century of inclusion has raised a generation of young adults who are the best natural support of people with disabilities in our workplaces. Because, to them, it’s second nature. Yet most employers are not tapping into this resource in their organizations, and even millennials fail to recognize that this skill of theirs is something special. We can’t solve what we can’t see. Let’s open our eyes. How do we include people with developmental disabilities in our workplaces and communities? Just ask the millennials. They know. They’re good at it. Today, as special-needs graduates enter the workforce, they represent the next wave of diversity, with the ability to enrich the culture of our organizations and the empathy of our employees in ways no one else can. Millennials are well equipped to help them succeed. Does your organization — large or small — have a place for someone with special needs? It’s a question well worth pondering, deeply. And for millennials, it’s a concept well worth nudging employers about. We have the hearts and smarts embodied in the millennial generation to lead the inclusion movement in the workplace and change us for the better. All it takes is the will and the leadership of employers to make it happen, because millennials are ready to go. LETTER TO THE EDITOR We are proud to sponsor None 4 Under 21 AND CHOICES BEYOND START THE CONVERSATION NOW None 4 Under 21 is a campaign focused on reducing teenage fatalities, especially during prom and graduation season. Start the conversation with your teen about drinking and driving today by printing out the Elk & Elk parent-teen drinking and driving pledge. Download the pledge, visit elkandelk.com/pledge Fly on Your Schedule. And our reputation. City is setting the record straight We read John Campanelli’s column, “City needs to be a better business partner” in the Feb. 23 issue of Crain’s, and we wanted to correct the record. The City of Cleveland Department of Economic Development was contacted by Judy Bodenhamer of Revenue Resources, who is the consultant for Gabriel Partners. She gave us a full rundown on Revenue Resources’ business model, after which we were very excited with the potential business opportunity. We clearly understand that money laundering issues are a big problem for banks and a matter of homeland security. We further recognized that this new industry fit perfectly into the City’s Banking and Finance Cluster, and we were anxious to meet the company. We inquired whether they had any needs we could assist with like finding space. They had just had secured a lease for the 31st floor of the Huntington Building and said they would be growing into that space. We then introduced them to Downtown Cleveland Alliance. The city was invited to their grand opening on Sept. 18, 2014, which we attended with a photographer in tow. We met several of the key executives of the company, including Mr. Brauser. Our staff social media writer gathered information and developed a web page on RethinkCleveland.org that features the company as an example of a “Key Industry” in the city. We also blogged and tweeted about the company. When their consultant indicated in November that the company was being solicited by other states for their planned expansion, we immediately asked for more information and completed an incentive offer, approved in December. When their consultant indicated that they had problems finding qualified candidates for employment, we referred them to the local Ohio Means Jobs Office. When they had trouble reaching their assigned job placement specialist, we again reached out. To date, they have received 20 referrals and have interviewed three individuals for these jobs. The City of Cleveland Department of Economic Development has worked with thousands of companies, both directly and through the Cleveland Industrial Retention Initiative (CIRI) contracted staff. The Department of Economic Development mission is to provide assistance to businesses expanding within or relocating to the city of Cleveland, including financing, workforce solutions, site selection and technical assistance that will encourage investment in the community to enhance the lives of our citizens. We are excited that Gabriel Partners has chosen Cleveland as a place to do business, and we know that Cleveland has a great cost advantage over other cities. We look forward to a continued working relationship with them for many years. — Tracey A. Nichols Director of Economic Development, City of Cleveland TALK ON THE WEB (CONTINUED) Without the government requirements in place, none of these industries can exist in this state. Sorry, but it does present a clear picture of the value of this industry segment, unless, of course, you are a Prius-driving vegan, in which case these “companies” are as important as food. And the Center for American Progress report on Ohio and renewables … is undoubtedly written with the proper bias and manipulation of numbers, which no real businessman worth his profit would find convincing. — qwerty Re: Rebirth of Joseph & Feiss building Putting an RTA rapid station at West 44th might help consolidate and stabilize the whole neighborhood. — Robert Salmon Re: Former NorTech leader Rebecca Bagley leaves town Congratulations, Rebecca. The University of Pittsburgh’s gain is Cleveland’s loss. Northeast Ohio will miss your in- novative and energetic leadership in the economic development sector. — Jim Blackburn Re: University of Akron name change? Doesn’t the administration at the University of Akron have something more to worry about than the name, which is already synonymous with polymer science on a global basis? Make the current name meaningful by your accomplishments. — Michael Kaufman Reliable, safe, Classic Jet Charter. ARGUS Gold rated. 440-942-7092. ClassicJetCharter.com. Willoughby, OH. 20150323-NEWS--12-NAT-CCI-CL_-- 12 3/19/2015 2:46 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 GOING PLACES Send information for Going Places to [email protected] HEALTH CARE JOB CHANGES LAKE HEALTH: John J. Baniewicz, M.D., to senior vice president and chief medical officer. ARCHITECTURE C.C. HODGSON ARCHITECTURAL GROUP: Richard Kieley to partner. SUMMA HEALTH SYSTEM: Ellen Smith to vice president for business development and access. CONSTRUCTION RONYAK PAVING: Rick Coan to chief financial officer. EDUCATION MAGNIFICAT HIGH SCHOOL: Julie Sims Gibbons to vice president, institutional advancement. FINANCIAL FIRST NATIONAL BANK OF PENNSYLVANIA: Tom Young to vice president, commercial banker; Colin Dormody to vice president, portfolio manager. Kieley MEDICAL MUTUAL OF OHIO: Camille Nixon to director, government programs, operations; Gordon Bell to vice president, general audit; Jennifer Collister to vice president, chief underwriter; Doug Kline to director, financial analysis, cost and budget; Cindy Ballog to manager, health promotion and wellness. McGurk and Brendon P. Friesen to shareholders; Charles Brown to senior associate; Miles Welo to associate. METLIFE PREMIER CLIENT GROUP OF OHIO: Deborah White to financial services representative. MANUFACTURING TODD ASSOCIATES INC.: Susan L. Zelenka to director, personal insurance solutions. FINANCIAL SERVICE CBIZ INC.: Linda Spero to manager of accounting and SEC reporting. LEGAL CAVITCH, FAMILIO AND DURKIN LPA.: Lindsey N. Smith to partner; John R. Tullio and Matthew E. Henoch to associates. CBIZ MHM LLC: Mike Nichols to divisional human resources director. PLANTE MORAN: Tony Rispoli to business developer. Coan INSURANCE MANSOUR GAVIN LPA: Tracey S. WICKENS, HERZER, PANZA, COOK & BATISTA: Christopher W. Peer to attorney, business organizations and tax department. MCPC: Jean Cotugno to program manager; Angela Lydon to account manager. Contact Myrna Previte to schedule your tour today. unique branding opportunities that make powerful statements. [email protected] 216-514-1400 employees and clients to collaborate and entertain You’ll only find these opportunities at 1111 Superior—the new destination for premier downtown office space. CORPORATE SCREENING: Quinn McConkey to account manager. POINT TO POINT: Melissa Benden to junior art director; Jason Craig to account manager; Stacy Hargreaves to project manager; Kate Kinison to senior media planner/buyer; Jennifer Plona to account director; Judy Znidar to senior research associates. invite you to change your presence in Downtown Cleveland with Exclusive rooftop terrace offering stunning green space for SERVICE TECHNOLOGY As the exciting revitalization continues at 1111 Superior Avenue, we » CLEVELAND HEARING & SPEECH CENTER: Jennell Vick to executive director. MARKETING NOW LEASING signage to light up the city skyline NONPROFIT TAP PACKAGING SOLUTIONS: Jordana Revella to vice president, sales and marketing. EXPERIENCE THE NEW 1111 SUPERIOR AVENUE Naming rights including street level and illuminated tower Baniewicz ROSS ENVIRONMENTAL SERVICES INC.: James Larson to chief operating officer; Stefanie Clemens to chief financial officer. CH A N GE YOUR PRESEN CE » Rispoli Kowit & Company Real Estate Group BOARDS NEIGHBORHOOD HOUSING Smith Peer SERVICES OF GREATER CLEVELAND: Tanisha Rush (Community Economic Development Management Solutions) to president; Kamla Lewis to first vice president; Michael Valerino to second vice president; Amy Kulisheck to treasurer; Lisa Nelson to secretary. WELCOME HOUSE: Mary Sauer (Cleveland Clinic) to president; Mark McCaffrey to vice president; Gerri Kornblut to secretary; Brian Seidner to treasurer. WEST HAVEN FOUNDATION: Darin Kershner (Fifth Third) to president; Stacey Kuehner to vice president; Jack Stanton to secretary; Aaron Apathy to treasurer. WORKING ANIMALS GIVING SERVICE FOR KIDS: Sam W. Rosenfeld (Gabriel Partners and The Densus Group) to interim chairman. 20150323-NEWS--13-NAT-CCI-CL_-- 3/19/2015 2:41 PM Page 1 MARCH 23 - 29, 2015 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office. LIENS FILED Love 2 Learn ABCs & 123s LLC 16224 Chagrin Blvd., Shaker Heights ID: 27-4101003 Date filed: Feb, 6, 2015 Type: Employer’s withholding Amount: $9,287 C & CS Corner Tavern Inc. 17910 Lake Shore Blvd., Cleveland ID: 34-1781522 Date filed: Feb. 5, 2015 Type: Failure to file complete return Amount: $9,257 Managed Insurance Strategies LLC 18 N. Main St., Suite 200, Chagrin Falls ID: 31-1556549 Date filed: Feb. 5, 2015 Type: Employer’s withholding, unemployment, failure to file complete return, partnership income Amount: $8,477 Able Grinding Co. 10015 Walford Ave., Cleveland ID: 34-0859095 Date filed: Feb. 5, 2015 Type: Employer’s withholding Amount: $9,181 Room to Grow Learning Center Inc. 87A Northfield Road, Bedford ID: 76-0807542 Date filed: Feb. 5, 2015 Type: Employer’s withholding Amount: $9,118 Cygnus Group Inc. P.O. Box 361839, Strongsville ID: 34-1965784 Date filed: Feb, 4, 2015 Type: Employer’s withholding, failure to file complete return Amount: $7,131 R & R Mechanical Inc. 3519 E. 75 St., Cleveland ID: 34-1501058 Date filed: Feb. 5, 2015 Type: Employer’s withholding Amount: $6,515 Date filed: Nov. 16, 2009 Date released: Feb. 4, 2015 Type: Employer’s withholding Amount: $34,554 LIENS RELEASED Ralph Siegenthaler Inc. 5584 Mayfield Road, Lyndhurst ID: 34-1292394 Date filed: Nov. 1, 2012 Date released: Feb. 5, 2015 Type: Employer’s withholding Amount: $9,228 Euclid Fine Foods Inc. 16044 Euclid Ave., East Cleveland ID: 35-2174080 Date filed: May 17, 2011 Date released: Feb. 5, 2015 Type: Employer’s withholding, unemployment Amount: $9,626 Paul F Smith Jr. DDS Inc. 20119 Farnsleigh Road, Suite 207, Shaker Heights ID: 34-1337892 Shaffer Learning Center Inc. 12002 Miles Ave., Cleveland ID: 34-1833443 Date filed: Nov. 15, 2005 Date released: Feb. 4, 2015 Type: Employer’s withholding, unemployment Amount: $16,991 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230; Phone: (216) 522-1383, Fax: (216) 694-4264, www.crainscleveland.com Publisher: John Campanelli ([email protected]) Editor: Elizabeth McIntyre ([email protected]) Managing editor: Scott Suttell ([email protected]) Sections editor: Amy Ann Stoessel ([email protected]) Assistant editor: Kevin Kleps ([email protected]) Sports Senior reporter: Stan Bullard ([email protected]) Real estate and construction Reporters: Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Rachel McCafferty ([email protected]) Manufacturing and energy Jeremy Nobile ([email protected]) Finance Research editor: Deborah W. Hillyer ([email protected]) Art director: Rebecca R. Markovitz ([email protected]) Cartoonist/illustrator: Rich Williams Events manager: Jessica Rasmussen ([email protected]) Special events coordinator: Kim Hill ([email protected]) Advertising director: Nicole Mastrangelo ([email protected]) Senior account executive: Dawn Donegan ([email protected]) Account executives: Lindsie Bowman ([email protected]) John Banks ([email protected]) Laura Kulber Mintz ([email protected]) Rob Divine ([email protected]) TOP FIVE SIGNS YOUR EMPLOYEES MIGHT HAVE INFERIOR DENTAL COVERAGE: THEY ONLY GET ONE CLEANING PER DECADE, PER HOUSEHOLD. THE DENTAL PLAN’S CUSTOMER SERVICE IS A 900 NUMBER. THEIR DENTIST THINKS ROOT CANAL IS LOCATED IN VENICE. MOLARS ARE CLASSIFIED AS “OPTIONAL.” Marketing strategist: Michelle Sustar ([email protected]) Office coordinator: Denise Donaldson ([email protected]) Web Editor: Damon Sims ([email protected]) Digital strategy director: Nancy Hanus ([email protected]) Audience development director: Eric Cedo ([email protected]) Web/Print production director: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Billing: Michele Ulman, 313-446-0353 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Customer service/subscriptions: 877-824-9373 Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Chris Crain: Executive Vice President, Director of Strategic Operations KC Crain: Executive Vice President, Director of Corporate Operations Dave Kamis: Vice president/production & manufacturing Anthony DiPonio: Chief Information Officer Thomas Stevens : Chief financial Officer Mary Kramer: Group publisher G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) THEY DON’T HAVE DELTA DENTAL. Give your employees access to two large networks of contracted dentists and award-winning customer service. Learn more at deltadentaloh.com/dentaldonebetter. 13 20150323-NEWS--14-NAT-CCI-CL_-- 14 3/19/2015 3:26 PM Page 1 CRAIN’S CLEVELAND BUSINESS MARCH 23 - 29, 2015 Indians hope to sc Team looks to drive up attendance with excitement on field, b By KEVIN KLEPS [email protected] vaunted Tigers lineup, the Indians believe they finally have something — a renovated, vastly improved ballpark — to combat that predicament. If you look out the window of Mark Shapiro’s fourth-floor office at Progressive Field, the first thing you notice is Quicken Loans Arena — home to the team that in June could end Cleveland’s championship drought. But no matter how the Cavaliers fare in the 2015 NBA playoffs, their low-key neighbors have built what appears to be a championship foundation. The Indians’ website is compiling a breakdown of all the encouraging predictions for 2015, and it’s a collection that’s growing as Opening Day approaches. ESPN.com writer David Schoenfield ranked the Tribe as the fourth-best team in Major League Baseball. His colleague, Grantland’s Jonah Keri, has the Indians No. 5 overall — a preseason ranking that’s shared by CBS Sports. Veteran baseball scribe Peter Gammons tweeted last month that he believes the Indians will play the Seattle Mariners in the American League Championship Series. In a few months, the Indians have gone from being a stealth pick to advance to the postseason for the second time in three years to a popular selection to end the Detroit Tigers’ four-year reign atop the AL Central. “I don’t like that,” said Shapiro, the Indians’ president since 2010 and a member of the Tribe’s front office since 1993. “I’d rather fly under the radar.” That was a much more viable option before the Indians won a combined 177 games in Terry Francona’s first two seasons as manager, and prior to the Tribe building a young pitching staff that is among the best in the game. Now, the only thing that seems out of whack is the difference between the Tribe’s place in the MLB standings and the spot the franchise usually occupies near the bottom of baseball’s attendance numbers. And like Corey Kluber taking the hill against a Renovations will be a driver On a particularly bitter late-February morning, Shapiro discussed the massive makeover the 21-yearold ballpark was undergoing. All of the major renovations — the new bar in right field, the expanded Kids Clubhouse, the innovative arrangement of the bullpens, the five-neighborhood concept with local food offerings in the Gate C concourse — will be completed prior to the home opener on April 10, he said. Some finishing touches might be necessary in the upper deck in right field and the Gate C plaza, but that won’t diminish the franchise’s high hopes for an immediate impact on a fan base that can be every bit as fickle as the spring weather. “It’s always exciting to move from the abstract to the more concrete execution of the vision,” Shapiro said. “Part of you wishes everybody could look at it side by side to recognize how dramatic the changes are because I think they’ve been executed so well that you look out there and it’s almost like you forget how different it is.” The renovations, which started at the conclusion of the 2014 season, represent the first major construction at a ballpark that is older than all but 10 in Major League Baseball. The Indians also believe the extensive overhaul is their best chance yet in their annual attempt to pump up attendance. After the Tribe’s average attendance dropped 6.3% in 2014 and their total draw at the gate was the worst in MLB, Shapiro told Crain’s the club felt as though it was “missing some piece of the value proposition to our fan base.” The Indians responded this winter with a few new wrinkles that, when paired with the renovations and INDIANS 2015: KEY PLAYERS COREY KLUBER MICHAEL BRANTLEY JASON KIPNIS Position: Starting pitcher Age: 28 (29 on April 10) Skinny: Kluber’s second full season in the major leagues was unexpectedly great. The righthander captured the American League Cy Young Award after leading all AL pitchers in wins (18), starts (34) and wins above replacement (7.5). In addition to being one of baseball’s best pitchers, Kluber is one of its most significant bargains. He will be paid $601,000 this season, isn’t eligible for arbitration until 2016 and can’t become a free agent until after the 2018 campaign. Tribe president Mark Shapiro recently told Crain’s that Kluber is a “good person to bet on,” and the club would like to sign the pitcher to a long-term contract. Position: Outfielder Age: 27 Skinny: Brantley was one of the game’s best players in 2014, when he set career highs in home runs (20), RBI (97), stolen bases (23), runs scored (94), batting average (.327) and OPS (.890). He finished third in the AL MVP race, was a first-time All-Star and earned a Silver Slugger award. The Indians wisely signed him to a four-year, $25 million contract extension prior to his breakout season. Brantley will make a combined $21.625 million the next three seasons, and the Tribe has an $11 million club option for 2018 that includes a $1 million buyout. He’s also proven to be very durable, having played in an average of 152 games since 2012. Position: Second baseman Age: 27 (28 on April 3) Skinny: The 2013 All-Star was hampered by an oblique injury that limited him to 129 games last season. Kipnis — after averaging 16 home runs, 80 RBI and 31 steals in the 2012 and 2013 seasons — batted .240 with six homers, 41 RBI and 22 steals in 2014. His batting average dropped 44 points from 2013 to last season. Kipnis’ offseason got off to a rocky start when he suffered a finger injury during a workout, but he has returned to action in the Grapefruit League, and his presence is crucial to the Indians’ lineup. Kipnis, who signed a six-year, $52.5 million extension early in the 2014 season, will make almost $4.2 million in 2015. GETTY IMAGES (3) 20150323-NEWS--15-NAT-CCI-CL_-- 3/19/2015 3:33 PM Page 1 CRAIN’S CLEVELAND BUSINESS MARCH 23 - 29, 2015 15 score points with home crowd , ballpark renovations and other fan-friendly improvements enhanced food offerings, are aimed at improving, among other things, the club’s slumping single-game sales. The Tribe has introduced $13 standing-room-only seats in the new social area in right field, along with $10 tickets for children 12 and under in the renovated Family Deck. When fans purchase a $13 District Ticket, the first beer, soda or bottled water is on the house. “We expect to grow our season (ticket) base again this season, and most importantly think the renovations will be a driver in the increase of single-game sales,” Shapiro said. The team president said the latter decreased in 2014, but stressed that the numbers were being compared to a 2013 campaign that was “one of our highest singlegame ticket totals in the past 10 years.” Earlier starts ‘a test’ Shapiro didn’t give specific numbers for the Tribe’s drop in single-game ticket sales, but it seems safe to assume it was pretty significant, considering the Indians’ increased their season-ticket base by about 500 (to 8,000) in 2014, and the club president said group and premium sales were up last season. Whether the renovations help the Indians buck the single-game decline won’t be known for months, and it is at least partially dependent on the cooperation of Mother Nature and the team being as good as advertised. But the enhancements cater to two sets — millennials and families of young kids — who might be more prone to make last-minute decisions to go to a game based on such variables as work commitments and weather. “I think we’ll feel it this season,” Shapiro said of the impact of renovations. “I’m not sure we’ll feel it in April or May, but I think as we move into the summer months as school gets out and temperatures warm up, I think we’ll feel the excitement and really feel a difference.” The season-ticket base is the most critical ticketing L E V E L SELF O F L E A D E R S H I P TEAM set for every baseball team, since it means guaranteed business in a sport that is more susceptible to weather letdowns than any other. The Indians have increased that foundation by about 2,000 since 2012, and Shapiro anticipates that number will increase as Opening Day approaches. “Clearly, as I’ve said many times, that is probably the most important area to grow,” Shapiro said. “I would not change on that. But I think that an area where we dropped off last year was not seasons. It was single games. I look at these changes as hopefully impacting single-game buyers more than necessarily season-ticket holders.” A more subtle tweak the Indians made this offseason was also done with the mercurial ticket buyer in mind. Five weekday games in April and May will start at 6:05 p.m., an hour earlier than normal. The Indians have tried 6:05 starts in the past, but the most they’ve had in any of the previous six seasons was two. “They’re low-demand, low-attended games, so the thought is do we incrementally increase attendance by giving people that work downtown — albeit not a huge number, but it’s still a large concentration of fans — the opportunity to come right from work instead of thinking about driving a half-hour home and a halfhour back,” Shapiro said. “Now, it’s, ‘Hey, I could stop by to watch five innings, six innings, and if it’s a great game stay for nine.’ ” Shapiro said the 6:05 starts are “a test,” and he’s hopeful “it resonates with our fans.” But the Indians’ top concern, one that has nothing to do with dinner-time first pitches, open spaces and grilled cheese sandwiches, is the on-field product. Shapiro feels pretty good about that, too. Just don’t refer to the Indians as division favorites. “I think we feel better this year than we did last year going into the season,” he said. “We have some questions. You’re always thinking about what could go wrong and how to remedy that if it happens.” S P O T L I G H T ORGANIZATION SOCIETY “(Faculty) are keenly aware of what happens in business and community … and they bring that to the education experience ....So this has been crucial to my development …. Many of the highlights and successes that I’ve received, (and) the accolades that I get are largely associated with what I received here at Weatherhead.” Sheila M. Wright Vice President, Community Engagement The Good Community Foundation Class of 2015 (candidate) See Sheila’s video at bit.ly/WeatherheadEMBA Groundbreaking leadership concepts for the business of a better world. The Executive MBA CONTRIBUTED PHOTO The renovations at Progressive Field include a new bar in right field, an expanded Kids Clubhouse, an innovative arrangement of the bullpens and a five-neighborhood concept with local food offerings in the Gate C concourse. 20150323-NEWS--16-NAT-CCI-CL_-- 16 3/19/2015 2:42 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 Charge have developed quite a following In their fourth season in Canton, the ‘mini-Cavs’ have proven to be among the best in the D-League on the business side By KEVIN KLEPS [email protected] The Canton Charge play in a 64year-old arena that they share in March with various high school boys and girls basketball teams competing in the postseason. The scoreboard at the Canton Memorial Civic Center is outdated, would never be compared to the new Humongotron at Quicken Loans Arena and has never thrown flames during player introductions. But the NBA Development League team’s minor-league surroundings are supplemented by a big-league mentality that’s familiar to anyone who’s been to a Cleveland Cavaliers game at The Q. “We say we’re powered by the Cleveland Cavaliers,” said Charge communications manager Sean Wyatt, who has been with the D-League franchise since the second game of its inaugural season in 2011-12. “We just try to make that evident in everything that we do.” On game days, it’s difficult to miss. During the Charge’s Feb. 27 victory over the Fort Wayne Mad Ants, the team held dribbling and shooting drills during which its furry mascot, Pozzie, participated with fans. Music could be heard until the second the ball was put back in play, the dance team threw T-shirts into the crowd, a female host narrated special promotions and 3-pointers by the home team were followed by a call of “threeeeeee” by the publicaddress announcer. “We’re like the mini-Cavs,” Wyatt D-LEAGUE FACTS & FIGURES SEASON: 14th ATTENDANCE: In 2013-14, the league’s total attendance, including the playoffs, was 1,181,404, a 5% increase from the previous season and the fifth consecutive campaign in which the circuit topped the 1 million mark. PLAYER SALARIES: Players are placed in three classifications — A, B and C. They make $13,000, $19,000 or $25,500. They receive a daily per diem of $40 on the road, and the D-League teams provide housing and medical care. NBA HOPEFULS: At the conclusion of the 2013-14 NBA season, 33% of the players on the year-end rosters had D-League experience (149). A record 36 D-League players were called up to NBA clubs in 2013-14. NBA EXPERIENCE: Ten first-round picks in the 2013 NBA draft played in the D-League last season. Seventy-nine players from the 2014 playoffs spent time in the D-League. KEVIN KLEPS The Canton Charge are averaging more than 2,900 fans per game. said. The Cavs are one of seven NBA franchises that fully own and operate a D-League team. The DLeague, which launched in 2001 and is viewed by the NBA as a feeder system for its franchises, has a record 18 teams in 2014-15, with each affiliated with at least one NBA club. SHOWING THEIR SUPPORT: A record nine teams have jersey sponsorships this season (up from six in 2013-14). The Canton Charge have yet to secure a jersey sponsor, but hope to in the coming seasons. The Charge have the advantage of the Cavs’ vast resources being at their disposal, and the affiliation is something chief operating officer Mike Levy has been stressing since his arrival last summer. “The thing is, we need the people to know that us and the Cavs are like this,” said Levy, wrapping two of his fingers together. “I’m not positive it was cemented in people’s minds before I got here. We’re trying to do more and more. We want people to understand that.” Levy has worked for the Houston Astros, Kansas City Royals, Memphis Grizzlies, the WNBA’s Los Angeles Sparks and the Spokane Shock of the Arena Football League in various management capacities in his 29year career. He helped the Cavaliers get the Cleveland Gladiators off the ground in 2008, and he’s a good friend and former tennis teammate at Duquesne University of Cavs CEO Len Komoroski. Levy said he’s not “big on the term minor league.” He prefers to call every professional sports club, no matter how small its operation, a franchise. “I’ve worked a lot in what they call minor leagues,” Levy said. “And there’s only one way to run it: with a major-league type of feel. That’s what we try to do. We may not have the resources of the Cavs, but people understand. They have just as good of a time.” Soaring stats Levy expects that by the end of the season, the Charge will have had six or seven of their 10 largest-ever gate revenues on 2014-15 game days. Ticket revenue is up more than 30% See CHARGE, page 18 PLAN YOUR WORKPLACE RETREAT See how micro-targeted marketing delivers for your company Research validates that high school sports events reach the demographic of families with children that marketers covert. According to research consultancy Vision Critical, 92% of consumers are more than likely to switch brands to support a company that advertises at high school sports venues. Common Ground corporate retreats combine challenging ŽƵƚĚŽŽƌ ĂĐƟǀŝƟĞƐ͕ ƉƌŽĨĞƐƐŝŽŶĂů growth programs and teamďƵŝůĚŝŶŐ ĞdžĞƌĐŝƐĞƐ ƚŽ ĚĞǀĞůŽƉ your associates’ leadership skills ĂŶĚƉŽƚĞŶƟĂů͘ “Combining the Canopy Tour with a half-day Leadership Retreat at Common Ground was the best retreat I’ve had with my team!” X Allison M. Boersma, &K͕KKZŝĚĚĞůů www.commongroundcenter.org or (440) 707-2044 www. Sports Agent Malpractice .com 20150323-NEWS--17-NAT-CCI-CL_-- 3/20/2015 1:19 PM Page 1 MARCH 23 - 29, 2015 WWW.CRAINSCLEVELAND.COM Gladiators are safe bet in a league with much uncertainty By KEVIN KLEPS [email protected] Scott Butera, a former CEO of Foxwoods Resort Casino in Connecticut, knows a thing or two about gambling. He also has proven to be adept at managing debt, which made him a logical choice last fall to succeed Jerry Kurz as commissioner of the Arena Football League. One team Butera doesn’t have to worry about is the Cleveland Gladiators, who are backed by Dan Gilbert’s billions and in 2014 ranked third in the league in attendance. “Cleveland is an excellent organization, and there are a lot of reasons they do well,” Butera said. “They are seasoned sports operators, they have a great relationship with their arena and a great sales staff that manages its database very well. It’s a great brand, and their people are trained really well.” Butera, who strengthened his reputation as a casino turnaround specialist after helping Foxwoods trim its debt from $2.3 billion to $1.7 billion in his four-year tenure, couldn’t say the same complimentary things about some of the Arena Football League’s previous owners and operators. The AFL filed for bankruptcy after not playing in 2009. In the five seasons that followed, the league’s average attendance hovered between 7,841 and 8,473. The latter figure, the AFL’s per-game norm in 2014, was 3.4% above the 2013 average, but well below the league’s 12,957 figure in 2008. This season, which kicks off with the Gladiators’ game at the Tampa Bay Storm on Friday, March 27, the AFL is down to 12 teams after the Pittsburgh Power and San Antonio Talons folded, and the Iowa Barnstormers opted to compete in the Indoor Football League (a lesserknown 10-team operation that launched in 2008). The AFL also welcomed back Las Vegas as its 12th team, marking the third AFL goaround for the Sin City. “That’s somewhat by design,” Butera said of the Arena league’s scaled-down operation. “I came into the league with the thought that we have a really great product. Football is doing well. The numbers get better every year. “But, unfortunately,” he continued, “the league has never really been run like a business. It’s kind of a diamond in the rough with a diehard following and good operations.” Glad to have you The Gladiators have had more financial fortitude than the majority of their AFL competitors, but even they had some lean times after the AFL shut down operations in 2009. In 2010, Cleveland’s average attendance was 8,828, a 5,203 drop from the Gladiators’ 2008 debut campaign. In 2011 and 2012, the Glads failed to draw more than 6,507 fans per game. All of that changed last season, when the Gladiators won an AFLrecord 17 games in the regular season (five on the last play of the game) and played in their first-ever ArenaBowl. They lost the championship contest to the Arizona Rattlers, but See GLADIATORS, page 18 IT ALL STARTED WITH A COMMITMENT: TO OUR CLIENTS. As Frantz Ward proudly celebrates its 15th anniversary, we are pleased to announce the relocation of our firm to 200 PUBLIC SQUARE SUITE 3000 CLEVELAND, OHIO 44114 Phone (216) 515-1660 Fax (216) 515-1650 www.FrantzWard.com CRAIN’S CLEVELAND BUSINESS 17 20150323-NEWS--18-NAT-CCI-CL_-- 18 3/20/2015 1:18 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 GLADIATORS continued from page 17 their season-ending stats at the gate were every bit as impressive as their 19-2 mark on the field. Cleveland’s average attendance of 10,609 in the regular season was 25% above the league norm. The Gladiators drew at least 9,404 fans for all nine of their regular-season contests, and the three playoff games at Quicken Loans Arena brought in a combined 45,637, including 18,410 for the ArenaBowl. “We made a lot of strides from the success of last year,” said Mike Ostrowski, a Cavaliers vice president who serves as the chief operating officer of the Gladiators and Lake Erie Monsters. “We had a great run in the regular season that was historic from a wins perspective. In the playoffs, we had a great platform to educate people and grow our business. That helped in terms of season tick- The Gladiators are capitalizing on the increased demand by locking up a local television partnership with WUAB. Six of their nine home games will be broadcast by Channel 43, and all 18 regular-season contests again will air on WKRK-FM, 92.3. On July 18, 38 Special will perform a 75-minute postgame concert, and the team will bring back its $1 soda and $2 draft beer specials for every contest. “This could allow us to capture the fringe casual fan looking to come out and have a good time,” Ostrowski said of the 38 Special concert, which trumps any postgame event in the franchise’s history. “It’s something like this that takes the game experience to a different level.” It’s exactly the type of feature Butera believes is essential as the Arena league attempts to get its business in line with what the commissioner thinks is an excellent onfield product. “You need facilities that are clean, safe and fun, with great in-game entertainment, a lot of interaction with players and other elements of the game so people feel like they’re part of the action,” Butera said. “Whether it’s a resort, a casino or sports, we’re all competing for people’s entertainment dime.” As for the slimmed-down nature of the league, Butera said he’d rather have 12 good owners “than have 15 with three or four that aren’t in great shape.” He hopes to add four teams next season, then get the AFL to 20 clubs in the coming years. But he’ll be very selective when someone wants to be part of the league, which launched in 1987. “We want to grow, but each owner we take on has to have a substantial net worth with an understanding of running a sports organization and ties to the city,” Butera said. “Dan Gilbert is the model of what we’re looking for. Who the owner is and their skill base is much more important (than just adding teams).” Another of the commissioner’s initiatives is a “full-court” publicity blitz — one that is pushing the game’s exciting action, reasonable prices and up-close access to players and coaches. This season, 15 AFL games will be broadcast on ESPN and 16 will be televised by CBS Sports Network. Every non-CBS Sports broadcast is available on mobile devices via ESPN3. “The increased ESPN exposure is very critical to our league,” the Gladiators’ Ostrowski said. “Sports networks want live content, and if it’s the most popular sport in the country, that’s even better. That’s exciting for us.” 15 of their 22 games between the start of the year and March 7 were on the road. (“Every team I’ve been involved with, after the Super Bowl, ticket sales go up,” Levy said.) But heading into the Charge’s St. Patrick’s Day game against visiting Westchester, the eight home contests since the New Year had drawn an average crowd of 3,458. Seven of their eight most-attended games of the season occurred in that span. Overall, the Charge are drawing 2,906 fans per game, a 15% increase, at the Civic Center, which has a basketball capacity of 3,942. The DLeague doesn’t release team-byteam attendance data because the size of the facilities in which its teams play varies so greatly. But as is the case with the Charge’s other business numbers, they are above the norm — ranking seventh, according to a source. “There are two things,” Levy said. “You want to have a D-League team to help the NBA team. But you also need to be in business. We’re part of the Gilbert family of companies, so there is a way that business is done.” For the Charge, that includes coming up with clever ways of bringing a big-league feel to an event featuring NBA hopefuls. There are court boxes — cordoned-off half-tables with room for five or six chairs (some include sofas) — behind each basket and along the court opposite the teams’ benches. Behind one of the baskets are six high-top tables that are part of the VIP seating area. Food and drinks are included in the cost of admission. An old stage that overlooks one of the baskets was converted into a VIP club featuring tables, catered food, a huge cooler stocked with soda and water, and bartenders serving Budweiser products. Season-ticket holders pay $8 to $19 for regular seats, and between $40 and $90 for a courtside ticket. During the Fort Wayne game on Feb. 27, the stage area, which offers a perfect view of the on-court action, was packed for the duration of the 48-minute game. The concourse area on the other end of the arena is lined with local vendors, including Nom Nom Popcorn, Great Lakes Brewery and Pizza Oven. “It’s just doing the simple things well,” Levy said. D-League owners are responsible for the players’ housing, but the players’ salaries, which range from $13,000 to $25,500, and road per diems ($40) obviously pale in comparison to the NBA. The Cavs also pay for the Charge coaches’ housing (players and coaches live in two-bedroom townhomes), which isn’t a league requirement. “We are an extension of the Cleveland Cavaliers,” first-year Charge coach Jordi Fernandez said. “It’s just a perfect setup.” The Charge have only 13 full-time employees on the business side, which Levy said makes it all the more gratifying every time they are able to pack the arena with fans. “That’s really our goal — to get people here one time,” the Charge’s COO said. “If you can get them here once and they’re like, ‘Are you kidding me?’ That’s what it’s all about.” et and group sales. That’s an understatement. The Gladiators have already tripled their season-ticket base, Ostrowski said, and the veteran Cavs executive expects the AFL team to draw more than 10,000 fans for each of its nine home games. “We want to get people in sooner,” Ostrowski said in early March, as the team had just started to sell single-game tickets. “With the success of last year, more people are exposed to the Arena league. We did a lot of winning last year. There’s no guarantee that transfers, but we have a lot of guys back from last year. They feel like there’s some unfinished business.” TV exposure ‘is very critical’ CHARGE continued from page 16 in Canton’s fourth D-League season, ticket sales have increased almost 40% and sponsorships have jumped by about 50%. The Charge’s single-game ticket revenue has almost doubled since 2013-14, and Levy said Canton ranks in the top seven in the 18-team league in season-ticket base, group ticket revenue and group sales. “Things are definitely on the upswing,” Levy said. “Everything’s up. Group tickets, we’ve made some big advances (a 75% increase from 201314). We’re in a situation where you just can’t expect people to call you. You have to go out and call them.” The Charge weren’t thrilled that COX BUSINESS INTERNETSM 15 NEXT DAY INSTALL WITH EVENING APPOINTMENTS AVAILABLE $ 69 99 mo* ADD COX BUSINESS INTERNET GATEWAY 7 $ 99 a month* INTERNET PACKAGE OPTIONS WITH MAXIMUM DOWNLOAD SPEEDS FROM 10 MBPS TO 10 GBPS GET THE FASTEST WIFI AVAILABLE WHEN YOU ADD OUR NEW WIRELESS GATEWAY PROTECT YOUR BUSINESS WITH 5 SECURITY SUITE LICENSES AND 5 GB OF ONLINE BACKUP For 12 months with a 2-year agreement* CALL 866-791-2688 | VISIT COXBUSINESS.COM *Offer ends 5/3/15. Available to new commercial subscribers of Cox Business InternetSM 15 (max.15/5 Mbps). Prices based on 2-year service term. Monthly service fee increases to $74.99 in month 13. Next day install subject to availability and may require expedite fees. DOCSIS 3.0 modem may be required for optimal performance. Prices exclude equipment, installation, taxes, and fees, unless indicated. Fastest WiFi based on available 802.11ac equipment, available at additional charge. Speeds not guaranteed. Actual speeds vary. Rates and bandwidth options vary and are subject to change. Discounts are not valid in combination with or in addition to other promotions and cannot be applied to any other Cox account. Services not available in all areas. Other restrictions apply. ©2015 Cox Communications, Inc. All rights reserved. 20150323-NEWS--19-NAT-CCI-CL_-- 3/20/2015 1:28 PM Page 1 MARCH 23 - 29, 2015 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM GAME continued from page 1 offseason, the Indians were the last major-league team that hadn’t opened a new ballpark or undergone a major renovation at their current home. But soon, Patton and his game operations staff will have a bunch of new toys, and he has more than a few ideas on how to use them. Almost showtime Patton’s first year on the job involved more watching and analyzing than revamping. “It was sort of an observational experience,” he said. “What I tried to do was rather than come in and say, ‘There’s a new sheriff in town, you gotta do it this way,’ which would have been unnatural and disrespectful to not only the people that do this, but also to the fans.” Instead, he decided to “sweat the small stuff.” His team focused on making any special occasion, such as July 4 or the unveiling of the Jim Thome statue, as memorable as possible. This season, it’s different. Patton is ready to put on a show. He said his group will “revamp the pregame experience pretty significantly.” The time leading up to the first pitch will be treated as a performance. There will be multiple hosts, live entertainment at various parts of the renovated social areas in right field and other locations in the ballpark, and even “commercial breaks” that allow the Tribe to work in a few plugs for sponsors. “We’re trying to repackage it so it feels more like a show and not an endless series of disconnected events,” Patton said. It’s all part of what the former theater and opera director describes as his three-pronged approach to the Indians’ “value proposition.” The first is “being there” — the Indians’ hope that once fans experience everything the renovated ballpark has to offer, they’ll continue to come back. The latter two elements are strategies with which Patton is quite familiar — developing content and “Showtime.” He wants the game operations staff to tell stories that give fans a stronger connection to the Indians’ young roster, and he wants the audience to be heavily involved. “My goal is to make fans feel that they are integral and instrumental in making the show happen,” Patton said. “We can put on all the entertainment we want, but we want fans to participate in it and make them feel they have an ownership in it. It’s not just about us telling them when to cheer. It’s them cheering and telling us what they “My goal is to make the fans feel that they are integral and instrumental in making the show happen.” – Leland Patton director of in-game experience, Cleveland Indians need and what they want, and feeding into that.” Doing that in baseball — easily the most traditional, laid-back and, at times, conservative of all the major sports — obviously isn’t as easy as Patton makes it sound. But he has a significant advantage in his second season on the job — the modernized Progressive Field. The Indians would also like to add a couple more key components as soon as the 2016 campaign. Ideas for everything The scoreboard at Progressive Field is one of the most outdated in baseball, and the park is still operating on its original sound system. Both elements are on the Tribe’s wish list for major capital repairs, which, if approved, would be funded by Cuyahoga County’s sin tax. (The current renovations are being privately financed by the team and its concessionaire, Delaware North.) An Indians source said there are “places in the ballpark where it sounds like Charlie Brown’s teacher,” and until the scoreboard and sound system are upgraded, Patton’s effect on the game experience will be somewhat limited. Patton said he “would love to have those things,” but he thinks his group “can make an impact regardless of whether we get a new scoreboard or sound system because right now we just don’t know.” Tribe president Mark Shapiro said Patton was hired “for two reasons.” The first, Shapiro said, was to “lend a creative perspective from a different background.” That backdrop is pretty unique for professional sports. Patton’s parents worked for a Shakespeare festival in his hometown of Ashland, Ore., and his wife, Amy McKenna, is an accomplished performer who does a lot of voiceover work and is currently part of the South Florida Theatre League. McKenna lives in Miami, where Patton worked from 2007-13, but the couple mixes in frequent flights to and from Cleveland and South Florida between their busy work schedules. Patton is also taking online courses in architecture, which is another of his creative passions. When told he could have been a part of the Indians’ renovation plans, Patton, in a joking manner, said, “Absolutely. I’ve got a lot of ideas.” It’s what lured him to Shapiro, who has made a point of bulking up his business team by hiring critical thinkers, many of whom have more experience in consumer products than they do sports. “He’s an interesting guy,” Shapiro said. “He’s taken his time and is doing the right thing, which is to understand Cleveland. It’s not the same as every other town. He’s gotten to understand baseball, because he didn’t work a lot in baseball. And now I think he has some ideas.” One of Patton’s pie-in-the-sky plans is to make the crowd a part of the Indians’ popular Rock ’N Blast fireworks shows. But he admits he’s not yet sure what that will entail. “We’re trying to make the show come to the people — see how far we can go with that,” Patton said. “I mean, I have ideas. I’m just not sure if I have the budget.” What he’s certain of is that athletics, not his original goal of running his own theater, is the perfect vehicle for his seemingly endless visions. “Life is tough, and it’s tough all around,” Patton said. “Sports provides us an ability to have an outlet to be outside of ourselves, but also share being outside ourselves with our friends and families. I think that’s a vital function of society, and I feel very privileged to work in a world where I get to spend my days trying to create these experiences for people to have.” “The New” LISTING OR BUYING, COLDWELL BANKER IS AMERICA’S LEADING REAL ESTATE BROKER. www.CBHunter.com Now member of Coldwell Banker Schmidt Family of Companies www.SchmidtFamilyofCompanies.com EMPLOYEE ASSISTANCE PROGRAM Maximize Your Workplace We’ve provided EAP services for 30+ years. Every $1 invested in EAP services saves employers $5-$16 in reduced costs and turnover.* Your employees’ success is our business. Call 216-421-4131 *DOL 1955 60 YEARS 2015 www.recres.org GET DAILY NEWS ALERTS FROM CRAIN’S REGISTER FOR FREE E-MAIL ALERTS AND RECEIVE: THE MORNING ROUNDUP: The day’s business news from Ohio’s daily papers BREAKING NEWS ALERTS DAILY HEADLINES: Crain’s-produced news and blog items from the day REAL ESTATE REPORT: A weekly guide to real estate news. Published Monday. 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CRAINSCLEVELAND.COM/REGISTER STAY CONNECTED WITH CRAIN’S TWITTER: @CrainsCleveland FACEBOOK: Facebook.com/CrainsCleveland LINKEDIN: linkedin.com/company/crain’s-cleveland-business INSTAGRAM: instagram.com/crainscleveland DAILY E-NEWSLETTERS: CrainsCleveland.com/register Strategic Wealth Partners is pleased to host: Strategic Insight Webinar SETTING UP AN EMPLOYER SPONSORED RETIREMENT PLAN Thursday, March 26, 2015 Webinar will start promptly at Noon and last approximately 60 minutes Strategic Wealth Partners • 5005 Rockside Road, Suite 1200 • Independence, Ohio Register at [email protected] CLE AND CPE CREDIT APPLIED FOR 19 20150323-NEWS--20-NAT-CCI-CL_-- 20 3/20/2015 1:08 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 LARGEST EMPLOYEE BENEFIT SERVICES FIRMS G GGG)'* "+$ $%% ! "!%& $"%%"! #"*% "& #"*%! " !&%! " $ " #!%&"! 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UH’s Richmond and Bedford hospitals have hosted LECOM’s graduates as residents for several years, and this summer UH Parma Medical Center will welcome its first class of residents. LECOM is also developing a residency program at UH Elyria Medical Center, which along with Parma’s hospital joined the UH system a little more than a year ago. “There’s been a lot of expansion and growth in this field,” said Dr. Christopher Loyke, Parma’s chief medical officer and director of medical education. “Osteopathic physicians are pushing hard to fill the need for primary care.” Surge in the ranks Over the last decade or so, interest in osteopathic medical education has exploded. In the 2003-2004 academic year, for one, osteopathic medical schools enrolled 11,857 students at 20 sites across the country, according to data from the American As- sociation of Colleges of Osteopathic Medicine. By 2013-2014, that number surged by 95% to 23,071 at 37 sites. Today, osteopathic medical students make up roughly 20% of all U.S. medical students. “Osteopathic physicians are pushing hard to fill the need for primary care.” – Dr. Christopher Loyke, chief medical officer, UH Parma Medical Center Enrollment at traditional MD schools hasn’t grown at quite the same clip, and observers say the growth in DOs could help alleviate the looming physician shortage. The Association of American Medical Colleges, an association representing the country’s accredited MD schools, estimates a national shortfall of 12,500 to 31,000 primary care physicians. “Our mission here is to graduate students who are going to stay in Northeast Ohio,” said Dr. Isaac Kirstein, a DO and dean of the new OU campus at South Pointe. That shortage is being fueled by growing demand as more Americans gain health insurance under the federal health care overhaul. Also, the health reform law puts a premium on and has begun to tie reimbursements to preventive care, or physicians’ ability to keep a set population healthy rather than only treating patients when sick. DOs contend they have a leg up in practicing that sort of care given that it’s always been in their profession’s DNA. They receive extra training in the musculoskeletal system, which provides them with the knowledge of how an illness or injury in one part of the body can affect another. Blurred lines While UH and the Clinic both are renowned academic centers that put a premium on research, they haven’t shied away from hiring DOs. The Clinic employs 199 DOs, compared with the 2,504 MDs on its professional staff. UH, meanwhile, boasts 238 DOs and 2,343 credentialed MDs throughout its enterprise. And if anything, the lines are being blurred between the two types of docs. Starting this year with the goal of being fully in place by 2020, both MD and DO graduate medical programs will be accredited under a uniform system. Still, it’s not as if the region’s traditional MD programs are at a standstill waiting for DOs to rescue the country from its primary care shortage. Case Western Reserve University and the Clinic are plotting a joint, 485,000-square-foot medical education hub on East 93rd Street between Euclid and Chester avenues. The premise of that effort is to train caregivers — nurses, docs, physician assistants, etc. — to work together to keep patients’ healthy. Also, NEOMED, which itself is polishing off a $160 million campus makeover in Rootstown, has teamed with Cleveland State to train physicians who will practice in Cleveland’s urban communities. “We’re not in direct competition based on mission,” Ohio University’s Kirstein said. Crain’s 2015 program nominations Nominations are now open for all of Crain’s Cleveland Business’ 2015 programs. Deadlines for the following programs are: ■ Women of Note — Nomination deadline: March 30 ■ Archer Awards — Nomination deadline: May 1 ■ Who to Watch in Technology — Nomination deadline: May 18 (noon) ■ Forty Under 40 — Nomination deadline: June 1 ■ Crain’s 52 — Nomination deadline: June 22 For more information on how to submit your recommendations for each of the programs, go to: www.crainscleveland.com/ nominations. Upcoming Special Supplement Cleveland’s Pulse In partnership with: Are you ready for April showers and May flowers? CALL TODAY FOR YOUR COMPLIMENTARY ANALYSIS! Providing Commercial & Multi-Family Landscaping Service Since 1995 Crain’s Cleveland Business and the Cleveland Foundation have partnered to create an unprecedented comprehensive report bringing together scores of significant data points to give our community a snapshot of Greater Cleveland’s vital signs. 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Contact Nicole Mastrangelo at 216-771-5158 or [email protected]. 21 20150323-NEWS--22-NAT-CCI-CL_-- 22 3/20/2015 2:43 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM MARCH 23 - 29, 2015 ACOs CONCORD continued from page 5 year how it fared in the second year. “In the first year, we bent the cost curve and did the right thing saving the government money, but we didn’t get any back,” Steiner said. “It was hard to start this thing off from scratch.” Summa — also an early adopter — was the only Medicare ACO in the state to actually generate any shared savings in the first year of operation. The health system generated about $11.8 million in savings, bringing about $5.8 million back into the system’s coffers. Summa’s model was focused on driving more patients toward primary care by creating more same-day appointments, thus steering them away from costly emergency room visits, according to Dr. Mark Terpylak, president of NewHealth Collaborative, Summa’s ACO. The late adopters Although the Clinic didn’t jump all-in in 2012, the health system had been quietly preparing to participate in the Medicare shared savings program since that time, according to Dr. David Longworth, chairman of the Clinic’s Medicine Institute. Since that time, the health system has transformed many of its primary care practices to better manage patients. Some of the investments include hiring care coordinators to manage complex patients, redesigning workflows to reduce the administrative burden on physicians and embedding a registry in the health system’s electronic medical record to flag high-risk patients. Ultimately, the health system began simulating being in an ACO, and in July, realized it was ready to apply for the Medicare program, Longworth said. “This is about transforming the way you deliver care,” Longworth said. “It would have been shortsighted to do this without that transformation. We wanted to be sure we could deliver the care before we took that risk.” Meanwhile, MetroHealth is no stranger to managing complex patients. As Cuyahoga County’s public hospital, the health care provider has long-served uninsured patients who oftentimes frequented the emergency room instead of handling the bulk of their care through primary care outlets. But as Medicaid eligibility expanded under the Affordable Care Act — and before that, through an experimental waiver in Cuyahoga County — the health system has retooled itself to manage the health care of these challenging populations. Some of those efforts include the usual targeted outreach to high-risk patients. Other efforts include offering patients transportation and even legal assistance. So when MetroHealth’s ACO joined the Medicare shared savings effort last year, it already was well-suited to manage the care of the roughly 10,000 lives in the program, according to Susan Mego, MetroHealth’s executive director of managed care. “If we didn’t have these resources in place, one of the most challenging things would be getting them up to scale,” Mego said. “People were already familiar with those programs.” The commercial side Local health systems’ ACO-like arrangements, of course, go beyond Medicare. All of the local health systems have struck riskbased arrangements with commercial insurers. UH, for one, has launched ACOs with several commercial insurers, including An- them Blue Cross and Blue Shield, Cigna Healthcare, UnitedHealthcare and Aetna. The financials of these arrangements are confidential, but insurers typically help foot part of the health system’s bill for transforming the way they deliver care. It takes money, for instance, to hire care coordinators who steer patients through a health system. Also, these aren’t capitated payer arrangements, where providers receive a lump sum per patient — a common characteristic of managed care plans from the 1990s. Like the Medicare arrangement, there’s also a shared-savings component, but even more importantly, these sort of contracts are changing the dynamic between insurers and health systems. Rather than haggling over the unit price of a service rendered or claims, insurers and health systems are trying to work together to care for patients. Much of that involves real-time data sharing. “It really is a partnership between us and them,” said Barb Cannon, director of accountable care organizations for Anthem Inc. “They have great information about their patients, but they don’t have the full picture. We have a part of the picture they need.” continued from page 8 needs to be much larger — such as 100 acres — to attract serious developer interest. Such small parcels only make sense in dense urban areas such as New York City or downtown Cleveland, he said. For the township’s part, Mitchell said it hopes to capitalize on its attributes. It has shaped the zoning of the site to accommodate retailers that retail consultant Buxton Co. said residents within a 12-minute drive time would patronize but are not yet in its borders. Fort Worth, Texas-based Buxton said almost 70,000 people live within a 12minute drive of a site it declared “underserved.” “This gives us a little more control,” Mitchell said. “We also hope to set the stage for more development. We’re in a unique position because we have all this land.” The deadline for proposals, along with a statement of the developer’s qualifications for the project, is April 10. A nine-member committee formed by trustees and the JEDD will recommend a proposal to trustees, who will have the final vote on the matter. REAL ESTATE CLASSIFIED Phone: (216) 522-1383 Fax: (216) 694-4264 Contact: Denise Donaldson E-mail: [email protected] AUCTION real estate auctions 4 Cleveland Apartment Communities Clinic View - 84 Units • 1832-1893 E 90th St Lakeshore - 17 Units • 14300 Lake Shore Blvd Eastlake - 22 Units • 14626 Lake Shore Blvd Taylor Gardens - 51 Units • 1843-1849 Taylor Rd Open to the Public: 11am-2pm Fri March 13, and 20. Nominal Opening Bids: $10,000/unit, Buyer’s Choice Auctions: 12pm Friday March 27 at 1832-1893 East 90th St, Cleveland, OH WAREHOUSE SPACE LUXURY PROPERTY LEASE: 35 Acre Country Estate Industrial/Warehouse 85,000 SF. 3rd floor. $1.25+/SF/Yr, net. Just east of CSU & close to interstates. NE Ohio, Equestrian Facilities. Ross 216.431.6633 [email protected] Details at ohiovu.com APARTMENTS APARTMENT Beautifully renovated Strongsville 2 br 1 ba. Granite kitchen, custom cabinets, custom bath, hardwood throughout, in suite laundry hookup. Off street parking. Close to Tpk, 71, and Metroparks. $950-$1050. Carolyn 216-310-1930 [email protected] For daily on-line updates, sign up @ CrainsCleveland.com/Daily LAND 800.982.0425 williamsauction.com OH DEAN C WILLIAMS RE LIC 2003017722; ANDREW WHITE AUC LIC 2003000128; WILLIAMS & WILLIAMS AUC LIC 2006000117. 5% BUYER’S PREMIUM. List your commercial, industrial, luxury property or Retail Space Here! Prime Multi-Family Land SW Cleveland Suburbs 200-500 Units, Mixed-use, 5 Stories Entitled Principals Only 216-389-2244 Crain’s Cleveland Business’ classifieds will help you fill that space. Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card BUSINESS SERVICES FLYNN ENVIRONMENTAL UST REMOVALS • REMEDIATION DUE DILIGENCE INVESTIGATIONS C. W. JENNINGS INDUSTRIAL EXCHANGE Global Expansion Consulting Construction • Acquisitions Exporting • Financing (800) 690-9409 (855) 707-1944 PearlWind Crain’s Executive Recruiter There has never been a better time for solar. Your one-stop source for solar development and LED lighting. 216-591-9463 Myrl Roberts – [email protected] Jon Kaplan – [email protected] Classified Ads WORK! BUSINESSES FOR SALE Thinking of Selling? Free Market Analysis No Upfront Fees See our listings at www.empirebusinesses.com Quality Assurance Manager YIA Ohio, Inc is seeking a Quality Assurance Manager. Yokohama Industries Americas Ohio Inc, is located Painesville, Ohio and Division of Yokohama Rubber Corporation. We are a manufacturer of Extruded and Molded Rubber Products serving the Automotive, Industrial, and Mass Transit Markets. We require a minimum of (10) ten years in the quality concern. The candidate must have hands-on experience with APQP, FMEA, PPAP, Control Plans, SPC, 8-D Corrective Actions, calibration systems implementation and maintenance. ISO90001 and ISO14001 Quality/Environmental Management Systems is a must. Routine customer interface, internal auditing, and personnel quality training coupled with rubber manufacturing background and a quality assurance degree are all requirements for this position. Please respond with letter of interest and resume to include a salary range to: YIA Ohio, Inc Attn: HR. P. O. Box 388 Painesville, Ohio 44077. 440-461-2202 Position Wanted Contact Denise Donaldson at 216.522-1383 Selling a Business? OEM inside sales Ohio Business Brokers Assoc. WWW.OBBA.ORG Find hundreds of businesses. Find a good broker to help. Estimating, product assessment. Sheet metal fabrication background. [email protected] Buying a Business? 440-842-4753 To place your Crain’s Cleveland Business Executive Recruiter ad Call Denise Donaldson at 216-522-1383 20150323-NEWS--23-NAT-CCI-CL_-- 3/20/2015 1:28 PM Page 1 MARCH 23 - 29, 2015 THE WEEK MARCH 16 - 22 The big story: Digital content distributor OverDrive Inc. of Garfield Heights has agreed to be acquired for $410 million in cash by Tokyobased Rakuten Inc., one of the world’s largest Internet services companies. The purchase is scheduled to close in April. OverDrive supplies a large catalog of e-books, audiobooks, music and streaming video to 30,000 libraries, schools and retailers worldwide. Insight Venture Partners has been the majority shareholder of OverDrive since 2010. OverDrive, which has about 240 employees, will continue to be led by its CEO, Steve Potash, from its current headquarters. Deal’s set: A. Schulman Inc., a supplier of high-performance plastic compounds, powders and resins, agreed to buy West Chicago, Ill.based Citadel Plastics Holdings Inc. for $800 million. Citadel, a portfolio company of private equity firms HGGC and Charlesbank Capital Partners, produces thermoset composites and thermoplastic compounds for specialty product applications in industries including transportation, industrial and construction, consumer, electrical, energy, and health care and safety. It had revenue of $525 million last year. The deal is expected to close in the third quarter of A. Schulman’s fiscal 2015. Bridge going nowhere: The bridge planned to carry pedestrians from Cleveland’s Mall to the lakefront won’t be ready in time for the Republican National Convention in July 2016. Cuyahoga County, the city of Cleveland, the Group Plan Commission, the Greater Cleveland Partnership and Destination Cleveland said they expect to rebid the contract to build the $25 million project. That process will delay completion into 2017. Jeremy Paris, executive director of the Group Plan Commission, said the goal remains to build the bridge for $25 million. WWW.CRAINSCLEVELAND.COM Making themselves at home: Mentorbased Metro Home Furniture leased first-floor space at The Residences at 1717 to open a contemporary home furnishings and accessories store on East Ninth Street in downtown Cleveland. The store will open about June 1 in 5,500 square feet that Metro has leased at Residences at 1717, according to K&D Group of Willoughby. Residences at 1717 opened last year in a former office building that K&D converted to apartments with retail space on the first floor. The furniture store will be on the building’s East Ninth Street side. Teamwork: The Cleveland Browns and the University of Findlay announced a program called Partnership for Student Success. It involves what the organizations are describing as a “knowledge transfer.” The collaboration will include as many as 10 internships, some of which will be year-round, along with Browns executives making themselves available for on-campus visits, networking events, skill-building opportunities and curriculum advice. 23 REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS The money’s out there, if you look hard enough Entrepreneurs should be stalking investors on social media. So long as they’re not creepy about it. It worked for Mike Belsito, who recently released an e-book called “Start Up Seed Funding for the Rest of Us: How to raise $1 million for your startup even outside of Silicon Valley.” The local entrepreneur describes how he identifies investors on AngelList … then hunts for common connections on LinkedIn … replies to them on Twitter … and then comments on their blogs. That technique is one of many laid out in the 112-page e-book — a step-by-step guide based largely on Belsito’s experience raising $1 million for eFuneral, a now-defunct company that helped people shop for funeral homes online. Even experienced entrepreneurs don’t realize how easy it is these days to build relationships with investors and other people who can help your business, wherever they live, Belsito says. For instance, he used Twitter to establish a relationship with David Cohen, who helped start Techstars — one of the bestknown startup accelerator programs in the world. Cohen didn’t invest in eFuneral, but he served as an adviser to the company. He used similar techniques to find people who could help him write and promote the book. For instance, Belsito asked 30 or 40 influential entrepreneurs and investors for feedback on a near-finished version of the book, though he had few ties with them. WHAT’S NEW When the book was done, he sent each of them a personalized email. That was a good move: Brad Feld, another Techstars co-founder who has a few books of his own, mentioned the book to his 200,000-plus Twitter followers. One of them then submitted it to ProductHunt.com, a website that’s popular among people who like hot new products. The book became the top product featured that day. It was downloaded about 5,000 times during that first week, when it was free. It now costs about $3 on Amazon.com. People from Belsito’s network also wrote reviews on Amazon: The book has 25 five-star ratings and one four-star rating as of March 20. — Chuck Soder But how’s their bedside manner? The future is here: Robots are coming to Summa Health System. No, it’s not a takeover by Terminator’s T1000 or even a dig at administrators, but the Akron-based health system is installing two robots — one at Akron City Hospital and another at Barberton Hospital — that will allow neurologists to perform real-time audiovisual consultations with emergency medicine teams to more quickly halt stroke damage. The burgeoning telemedicine program is through a partnership with California-based InTouch Health. In a news release, Summa said acute stroke care is a time-sensitive issue given the small window for treatment and often limited access to stroke specialists. The quick consultations will speed the delivery of clot-busting drugs, such as tPA, The numbers don’t lie COMPANY: The Step2 Co., Streetsboro PRODUCT: Home Run Baseball Trainer Step2 is bringing the arrival of spring a little closer with the release of the Home Run Baseball Trainer. The trainer’s zig-zag design allows players ages 3 years and up “to get in their stance, release one of the four included baseballs, and hit a perfect strike every time,” the company says. It’s built to accommodate growing kids, as the Home Run Baseball Trainer adjusts to three different heights to develop each child’s skill level. The base of the trainer can be filled with sand or water to provide more stability, Step2 says. If the little sluggers work up a sweat from practicing, “they can grab a water bottle from one of the two molded-in cup holders,” according to the company. Product manager Aaron Taylor says the new product “is more than a toy; it’s an instructor that teaches the fundamentals of baseball.” He says parents and coaches alike “will enjoy the visual cue the ball gives so that kids have the chance to get set in a stance and perfect their swing.” Visit www.step2.com for information. Send information about new products to managing editor Scott Suttell at [email protected]. that can halt and reverse stroke damage. “Our robots, in effect, will serve as a portal through which a stroke specialist anywhere can be virtually present at a moment’s notice,” said Dr. Susana Bowling, Summa’s medical director for neurosciences. — Timothy Magaw The children are our future The Timken Co. is preparing for a new generation of educated workers — by helping to educate the children of its current workforce with millions in scholarships. Last week, the company announced it was awarding 17 scholarships, with a fouryear value of up to $540,000, to 17 sons and daughters of Timken employees at 11 sites around the world. That makes $21 million in scholarships that the company has handed out, since it began its program in 1958. This year’s two biggest awards — the $35,000 Henry Timken Scholar Award and the $25,000 Jack Timken Scholar award — went to Bogdan Konnerth and Minna Schut, respectively. Konnerth is the son of a Timken engineering manager in Romania. Schut is the daughter of Jeffrey Schut, principal inventory planner at the company’s headquarters in Canton. Scholarships also went to Ryan Springer, whose father, Thomas, is a program manager for Timken in Canton, and Shreyas Chaudhari, whose father, Rahul, is manager of manufacturing technology for the company, also in Canton. — Dan Shingler BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com. Boots on the ground: Famous boot retailer and outdoor retailer L.L. Bean plans to open its first Ohio store, in November at Legacy Village shopping center in Lyndhurst. Freeport, Mainebased L.L. Bean said the store will consist of 16,000 feet of space and employ about 100 people. The store will have an assortment of active and casual apparel and footwear as well as camping, fly-fishing, hiking, kayaking and other products. L.L. Bean will move into the current Talbots store at Legacy, which will move within the center. Best known as a catalog retailer, L.L. Bean said the Legacy Village store will be L.L. Bean’s 23rd retail operation outside of Maine. CRAIN’S CLEVELAND BUSINESS Northeast Ohio resident Linda Jokkel probably spoke for a lot of people with her observations in a Bloomberg story noting that the “link between falling unemployment and rising wages — once almost as basic to economic theory as supply and demand — seems to be coming unhinged.” Nationally, the U.S. unemployment rate dropped to 5.5% in February, the lowest in almost seven years, according to the Labor Department. But, as Bloomberg pointed out, “accompanying that decline was only a 0.1 percent, or 3 cent, monthly rise in average hourly earnings.” Jokkel, 45, “took a temporary position in September as an administrative assistant at a manufacturing company earning about half what she’d been making at a previous job, and without benefits,” according to the story. She had thought she could do better after her position as a secretary at Ben Venue Laboratories Inc. was eliminated in 2013. Instead, Bloomberg said, “she exhausted her unemployment benefits looking for fulltime work that paid anywhere near what she’d been earning.” During her search, Jokkel told Bloomberg, she found reports about a strengthening labor market galling: “I would hear, ‘Oh, the unemployment rate is so low,’ and I’m like, ‘No it isn’t because people like me disappear.’” No whining about sulfites The federal government in the late 1980s insisted that wine labels include a “Contains Sulfites” warning. Since then, many people have blamed the compound for their wine headaches, but as The Wall Street Journal said, the cause almost certainly is something else. “Only a tiny percentage of the U.S. population — less than 1% — actually suffers from true sensitivity to sulfites, and these people are invariably chronic asthmatics,” the paper reported based on information from Dr. David Lang, chairman of the Department of Allergy and Clinical Immunology at the Cleveland Clinic. Lang told The Journal that in his 28 years of practice, he has seen only one person who had “true allergic reactions” to sulfites. Such reactions, he noted, typically involve shortness of breath and wheezing, not headaches. “Sulfites have been around for centuries and have been very well-tolerated,” Lang said. Non-asthmatics who come to Lang with sulfite-related fears “might actually be allergic to something else in the wines, such as proteins or histamines,” according to the story. What’s more, The Journal said, white wine contains more sulfites than does red, so those who suffer from “red-wine sulfite allergy” may be reacting to tannins, which tend to be more significant in red wine than white. Information flow Belt magazine kicked off a partnership with The Guardian with a story that looked at the devastating consequences of Ohio’s decision to reject millions of dollars of federal government money for food stamps. Here’s a sobering paragraph from the story, which originally ran in Belt: In 2009 — the worst year of the “great recession” in Ohio, according to the Brookings Institution — the (Cleveland) Food Bank delivered 29.1 million pounds of food. That should have been the zenith of food charity, if you go by job growth and the decrease in foreclosures. Instead, year over year since, the volume of food distributed by the Food Bank has grown. Last year, it distributed 32% more than in 2009. Ann Trubek, Belt editor-in-chief, said in an email that The Guardian’s Guardian Cities unit “will repost our stories occasionally. … We’re proud and happy to bring news of our region to their international readers.” 20150323-NEWS--24-NAT-CCI-CL_-- 3/19/2015 2:57 PM Page 1