Crain's Cleveland Business

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VOL. 37, NO. 23

JUNE 6 - 12, 2016

Source Lunch

Business of Life

Jeneen Marziani, Bank of America

Graham Veysey wants wine to be fun

Banking industry veteran brings a unique perspective to Cleveland life. Page 20

Page 19

CLEVELAND BUSINESS

The List Highest paid female executives. Page 23

Y

ou’ve likely read too many numbers to count on the NBA Finals rematch between the Cleveland Cavaliers and Golden State Warriors.

(Case in point: The graphic that accompanies this column.)

Here are a few we’ve really been focusing on this past week, as LeBron James’ legacy was again being dissected as if he had just announced that his seventh Finals appearance would be his last: ■ All three of the Cavs’ NBA Finals trips have occurred during James’ nine seasons with the organization.

■ In those nine years, the Cavs have won at least 50 games six times.

■ In 37 non-James seasons, the best the Cavs could do was a pair of

SPORTS BUSINESS

The numbers prove Cavs fans are all in Economic impact $3.6 million:

Estimated impact of each home playoff game at The Q during the first three rounds.

$5 million: Projected

economic impact for each 2016 NBA Finals game at Quicken Loans Arena.

$927,000: Combined admissions taxes the city pulled in on primary and secondary ticket sales for 2015 Finals Games 3 and 4.

Attendance Tickets

TV ratings

100: 2016 Finals Game 3

145: Tickets for Game 3

43.7: Average rating for the 2015 NBA Finals in the Cleveland designated market.

31: All but 10 of the Cavs’

6: Tickets for Game 3 of

will be the 100th consecutive home sellout since LeBron James returned.

41 road games were sellouts in 2015-16.

of the 2016 Finals that sold for under $300 on Flash Seats, as of the morning of June 1.

the 2015 Finals that sold for under $325 on Flash Seats, as of June 1, 2015.

9.31: Average rating for Cavs regular-season games on Fox Sports Ohio in 2015-16, breaking the 2008-09 record (8.77).

International reach 26: Percent of traffic to Cavs.com from international users during the regular season.

50-plus: Percent of the Cavs’ 5.5 million Facebook followers living outside the U.S.

SEE CAVS, PAGE 21

Photograph by Jason MIller, Getty Images

GOVERNMENT

LAW

Corridor has its share Bar’s approach is more diverse of business obstacles

By JEREMY NOBILE

By JAY MILLER jmiller@crain.com @millerjh

In the same way that gardeners view a furrow ready for new plantings, civic leaders are hoping that the Opportunity Corridor, the $331 million roadway being tilled through Cleveland’s East Side, will prove fertile ground for new business devel-

opment — as well as becoming a fast route between University Circle and the freeways to the west.

But several existing businesses along the 3.5-mile route being plowed between East 55th Street and University Circle see the process damaging their roots, or worse.

Some are being transplanted from familiar ground and the process may have killed a business that couldn’t SEE CORRIDOR, PAGE 22

Entire contents © 2016 by Crain Communications Inc.

jnobile@crain.com @JeremyNobile

Data show that diversity in the legal industry continues to improve at a snail’s pace.

But a new initiative by the Cleveland Metropolitan Bar Association should give that mission in Northeast Ohio some thrusters.

The need has always been there.

Besides the well-established business case for diversity, the promo-

tion of diverse people and ideas is, naturally, the right thing to do in any industry, said Majeed Makhlouf, a Beachwood attorney and vice president of diversity and inclusion for the CMBA. “When the recession hit, if you were looking at diversity and inclusion programs as a luxury, those were cut. But this isn’t something we do as an add-on,” Makhlouf said.

“Years later, this is an existential question. The discussion has changed, just as the very profession has changed. And if you want to sur-

vive, diversity is something you need to have.”

The findings A first-of-its-kind diversity and inclusion survey by the CMBA is at the heart of a new approach to help groups from law firms to courts to corporate counsels not only achieve more cultural and gender diversity in their ranks and retain those people over time, but to promote them up the leadership chain to the most visible and influential management roles.

SEE BAR, PAGE 6

UNIVERSITY RESEARCH

As grant money tightens, more grad students turn to crowdfunding FOCUS, Page 13

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CRAIN’S CLEVELAND BUSINESS z JUNE 6 - 12, 2016 z PAGE 3

Tangent taking long view with Watercycle

By CHUCK SODER csoder@crain.com @ChuckSoder

Just before Bill Prior died, he achieved one of his many dreams.

In December, employees at the Western Reserve Land Conservancy started drinking recycled water.

So what if that very same water had previously been flushed down the toilet? The water is nearly as pure as the stuff that falls from the sky, thanks to a recycling system built by Tangent Company. “It’s much closer to distilled water than anything else,� said Emily Bacha, director of communications and marketing for the Moreland Hills-based land conservancy.

Now led by Prior’s children, the company believes that its Watercycle system is capable of solving waterrelated problems all over the globe.

Granted, it will be a long time before Tangent can start mass producing the system. It will need to be made smaller and cheaper before that day comes. And the company, based just east of Bainbridge, will have to convince regulators in Ohio and elsewhere to draft new rules that would allow theses systems to be installed without having to seek variances for each one.

Thus, for now, the company is working to turn individual pieces of the system into products. Its goal is to generate revenue while improving the system as a whole, according to CEO Kerry Prior.

Prior never intended to take on a day-to-day role with the business.

After all, he’s spent the past 30 years in the film industry, first as a special effects artist and later as a director.

He was knee-deep in post produc-

tion on a locally shot horror movie called “Virgin Forest� in February, when his 85-year-old father died of a brain aneurysm (he had recently slipped and fell on ice in his driveway, which may have been the cause).

Bill Prior is best known as cofounder of Kinetico, a global water treatment company based in Newbury, but he developed all sorts of other devices over the years: an aircraft oxygen compressor, a hand pump for inflatable mattresses and all sorts of sporting equipment (for instance, he spent decades working on a sailboat that uses wing-like foils to lift itself almost entirely out of the water, decreasing drag).

Two years after selling Kinetico to a Swedish company called Axel Johnson, he started Tangent with Jim Bolton, who served as CEO. Bill played an oversight and support role, while serving as the company’s official “dreamer,� according to his LinkedIn profile.

His children were among Tangent’s investors, and when he died they became involved with the business. Before long, they replaced Bolton, an engineer by trade, and redirected the company’s efforts toward getting a product on the market.

Profit challenge In the process, Kerry Prior said he posed a hypothetical question to the company’s employees: If you had to make the company profitable in 24 months, how would you do it? And he gave them a rule: The plan couldn’t involve waiting for regulators to take action. “If we don’t have control over regulatory, we don’t have control over getting it to market,� he said.

As a result, the company is hold-

Are you an individual with $10 million or more seeking advice?

ing off on efforts to commercialize the entire Watercycle system. Instead, it’s creating prototype products based on two pieces of the system: The bioreactor, which uses bacteria to break down organic compounds in the wastewater, and the purification appliance, which uses filters and ultraviolet light to remove chemicals and other contaminants before sending the water back into the house.

The company’s staff — a group that includes about 20 employees and contractors — is excited to take on the challenge, Prior said, admitting that he may have rubbed a few of them the wrong way at first.

“People are ready to go and start making revenue,� he said.

Michelle Matty, the company’s sales and human resources manager, seconded that thought. “We needed a change,� she said.

Long road After all, over the past eight years, the company had already developed three prototypes of the entire system. The other two were built at a rental home owned by the Prior family. The older of those two systems has been dismantled. The other is currently purifying wastewater from the home, with approval from the renters. However, Tangent is still try-

ing to get regulatory approval to redirect that water back into the house. For now, it flows into the home’s septic system.

Despite the regulatory barriers, Tangent believes that the Watercycle system has a bright future. For instance, in 2014 the state passed a bill that eventually will make it legal for private water systems to recycle water without seeking a variance for each location. Though the Ohio Department of Health has yet to issue rules describing how those systems will be regulated, department officials have been working closely with Tangent and they appear to see the technology’s potential, according to Prior and Matty.

A representative from the department didn’t return an email and a voicemail from Crain’s. However, the department knows that Ohio’s household sewage treatment systems aren’t perfect: As of 2012, an estimated 30% of them were “experiencing some degree of failure,� according to a report the department published at the time.

Not that Ohio will be Tangent’s main target market. Kerry Prior says the Watercycle system could eventually be installed by developers who want to construct buildings in arid regions, be they in California or in the developing world. It also could be appealing in areas that don’t already have much in the way of water treatment infrastructure.

The $50,000 goal Prior wouldn’t say how much the first two products would cost, but he says Tangent aims to decrease the cost of the Watercycle system to the point where the company could sell it for roughly $50,000.

SEE TANGENT, PAGE 4

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By CHUCK SODER csoder@crain.com @ChuckSoder

Five years ago, Nick Martin was tasked with modernizing the Cuyahoga County Democratic Party.

Now, he aims to modernize political campaigns nationwide.

A software company called Data Genomix recently hired Martin to serve as its first CEO. Martin — who is transitioning out of his position as executive director of the Cuyahoga County Democratic Party — understands the problem Data Genomix is trying to solve.

The Cleveland company helps political groups and other organizations use social media to send targeted messages to voters, donors and customers, which is familiar territory for Martin. Back when the Brecksville native worked for the Ohio Democratic Party, he served as second-in-command for the targeting and analytics department. Those skills helped him win the Cuyahoga County position in 2011.

Martin learned about Data Genomix while looking for a quick, efficient way to send messages to people who sign up to vote by mail. The traditional way to reach them would be via direct mail, which can cost as much as 75 cents for every piece sent out, when you factor in printing, postage and other costs, Martin said.

“These guys said, ‘What if we could cut it to one quarter of that?’ I said, ‘You’re kidding, right?’ ” he said.

They weren’t. Thus, the county party became one of the 20 political groups that use the company’s software. (Five businesses use it as well.)

The party ended up using the system to send a list of officially endorsed candidates to early voters in advance of the March primary election. And it seemed to work, Martin said.

“I can’t tell you the number of voters who called and said, ‘Thank you for putting this guide together,’ ” he said.

Data Genomix recently leased a Martin small office in downtown Cleveland’s Fifth Third Building. It has about a dozen employees, including a few who live in other cities.

After the November election, founder Geoff Loree plans to move to New York to help the company attract more nonprofit and advocacy groups.

Those groups, along with business customers, should help Data Genomix pay the bills between elections.

But it made sense to base Data Genomix in Ohio, given its status as a political battleground state, said Loree, who runs GLOREE, a family investment firm that has traditionally focused on real estate and servicebased companies.

“If you can prove a political product in this state, you can do it anywhere,” he said.

That product can perform a number of functions. For instance, customers that already have a database of donors and likely voters can use it to find those people on social media and send them targeted messages.

The software also allows customers to analyze someone’s past social media posts to identify likely voters.

And organizations that aren’t quite sure what message to send can use the tool to run so-called A/B tests on small groups to see which ones get the strongest response.

Data Genomix will focus on leftleaning political candidates, given Martin’s ties to the Democratic Party, but its advocacy work will be nonpartisan, Loree said.

“Ultimately, the executive team

makes a thoughtful decision on whether or not to take up a candidate or issue,” he said.

Granted, Data Genomix isn’t the only company helping candidates reach voters via the internet. Much has been made of how President Barack Obama and candidates like U.S. Sen. Ted Cruz, R-Texas, have used large data sets and social media platforms to target voters.

So what is the company’s competitive advantage? For one, Loree says the Data Genomix team knows as much about political data analytics “as anyone in the world.”

The company also provides “an end-to-end solution,” he said. For instance, Data Genomix helps some customers create the content that they send out through the system, though the company does contract out some of that work.

Plus, many campaigns and advocacy groups still aren’t taking advantage of the digital tools that are out there, Loree said, using a metaphor from his days as a minor league baseball player.

“It’s not even in the first inning. It’s winter ball or spring training,” he said.

The company wouldn’t identify any of its political customers, but it did connect Crain’s with one of its five business clients: Landskroner Grieco Merriman LLC, a Cleveland law firm that specializes in litigation related to small businesses, personal injuries and consumer class actions.

Thus, when managing attorney Jack Landskroner first heard about Data Genomix — he’s active in Democratic politics and judicial elections — he figured it could help his firm find people who could become clients.

Landskroner, who had previously met Martin in passing, added that he liked the idea of reaching out to people using interactive digital content instead of a piece of paper in the mail.

“To me, it was just a no-brainer,” he said.

TANGENT CONTINUED FROM PAGE 3

Some of its early adopters, however, might not be so sensitive to price, Prior said. He noted that billionaire Larry Ellison bought a small Hawaiian island and plans to build a desalination plant to make up for the lack of freshwater there.

“There are those outliers who don’t care if it’s a reasonable price,” he said.

The Western Reserve Land Conservancy — which will purchase the system once the state finalizes its water recycling regulations — installed the system as part of a broader effort to make its 4-year-old headquarters as environmentally friendly as possible, Bacha said, declining to disclose the price.

She added that the conservancy also had trouble drilling a well that produced decent water. On the other hand, water from the recycling

CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 Phone: (216) 522-1 1383; www.crainscleveland.com

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212-210-0750 kbora@crain.com,

Customer service and subscriptions 877-824-9373

A Tangent prototype purifies wastewater from a rental home owned by the Prior family. (Contributed photo) system is clearer than water from the city of Cleveland’s system, and it contains less salt and organic carbon, according to data the organization collected in May. Bacha noted that Bill and his wife Carol have been friends of the conservancy for years.

Bill Prior cared deeply about the environment and his employees. He of-

ten encouraged them to pursue their own dreams, according to Matty.

Her mother worked for Bill at Kinetico and loved going to work every day — which is why Matty applied to work at Tangent back in 2008. Now she and her colleagues want to carry his legacy forward.

“We’re going to make Bill’s dream come true,” she said

Volume 37, Number 23 Crain’s s Cleveland Bus sines ss (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2016 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 s Cleveland Bus sines ss, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

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CONTINUED FROM PAGE 1 Among various components of the survey, conducted through the end of last year, was a questionnaire asking 424 legal groups (including 318 law firms) in Northeast Ohio about their demographics and cultural makeups.

Those results, released last month at a CMBA event in a massive report, are striking.

For instance, the survey shows that among responding firms, only about 4% of equity and non-equity partners in Cleveland are attorneys of color.

Only about 8% of associates are minorities. Of all associates on partnership tracks, just 9.5% are minorities.

Women of color, comparatively, represent less than 1% of all partners and just 4.6% of all associates.

“The thought process, especially with women, was that time will heal it,” Makhlouf said. “What the data shows is that’s not happening.”

For women and minorities in the courts, public sector and in-house counsel positions, the numbers improve slightly.

The survey validates what’s already well-known, but infrequently publicly addressed: There are not nearly as many women and minorities working in law overall, particularly at high-level leadership roles in firms, as white men.

However, the findings carry an important caveat: Only 20% of all those surveyed responded. (Participation was highest among large law firms with 75 attorneys or more, with 77% of those surveyed responding).

That in itself reflects part of the issue. It’s simply an uncomfortable subject for many to approach. And despite a promise to report only aggregate findings, the idea of reporting their makeups made many uncomfortable, said CMBA executive director Rebecca Rupert McMahon.

Some may have been leery about whether their data would truly be kept confidential. Others discovered they never actually tracked this data themselves.

This is the first of what will now be an annual survey, McMahon said.

Participation is expected to grow exponentially.

In the meantime, despite a low number of responses on demographic makeups, the information does create a starting point to move the dialogue forward while also giving firms an idea of what metrics they should begin tracking. Without quantifying some basic details — something the CMBA first discussed decades ago but only recently achieved — there’s really no baseline for improvement.

It’s truly the missing piece to solving a puzzle that many have never started.

“This survey gives us a chance to put a flag in the ground and say where we are at today,” McMahon said. “Did we want 100%? Sure. But we’re still happy with this.”

What comes next?

Besides collecting data, the survey and corresponding event helped connect stakeholders in a fresh way with the CMBA’s diversity initiatives.

Dozens of stakeholders, including a variety of firm managing partners, will meet with the CMBA diversity and inclusion committee over the summer with the purpose of outlining what their coming goals should be.

Topics from tweaking existing diversity programs — including mentor relationships that tend to be less effective when delegated as opposed to naturally fostered, Makhlouf sug-

“Big companies, big banks … they ask for your numbers because they want diverse teams.

They’re not only looking at demographics, but the makeup of work teams assigned to work on projects.”

— Adrian Thompson, chief diversity officer at Taft Stettinius & Hollister gests — to discussing the underlying issues of unconscious bias along with the role the CMBA can play in helping address all these problems are on the table.

They have an Aug. 31 deadline to determine what those goals are, McMahon said.

“I’ve never felt better, honestly,” Makhlouf said. “Finally, we’re gearing the discussion in the right direction.”

CMBA diversity committee member Adrian Thompson, chief diversity officer at Taft Stettinius & Hollister, shares a similar enthusiasm.

While firms like his have been working on diversity and inclusion in-house for some time — and some Cleveland firms are certainly making strides faster than others — there is still a lot of room for improvement.

In a competitive legal market, diversity is a necessity, he said. It can increasingly make a difference in securing work or not.

“You want to serve clients to the best degree possible, and different viewpoints build a better team,” Thompson said. “And clients are asking for it. Big companies, big banks … they ask for your numbers because they want diverse teams.

They’re not only looking at demographics, but the makeup of work teams assigned to work on projects.

General counselors ask about policies for women. When you respond to an RFP, you better be prepared to answer those questions.”

But if diversity is so important, why has it taken so long to improve in this industry?

Most agree there are a number of factors at play from the difficulty of simply broaching the topic to egos, among other things.

Acknowledging a shortcoming in one’s business isn’t easy, after all.

Lawyers also tend to be rather conservative as a group, and change can be difficult, Thompson points out.

“Discussing racism, sexism — all the ‘isms’ — is not easy,” he said.

“For firms to truly look at that, you have to look inward at what you’re doing. You have to dig deeper than the numbers.”

That’s where the CMBA comes in.

The nonprofit is embracing its role as a conduit for that conversation, providing a neutral territory for lawyers who compete for business and in the courtroom to address an issue that will ultimately improve the entire legal community and even encourage more lawyers of diverse backgrounds to practice here.

That, Makhlouf said, will only improve the business of law and better positions firms for future viability.

“It may be hard to talk about,” Thompson added. “But firms that don’t become inclusive will be the firms that lose business and be left behind.”

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THANK YOU! WOMEN OF NOTE AWARDS & SUMMIT THE WOMEN’S CAUCUS

The 2016 Women of Note Summit & Awards: The Women’s PRESENTED BY Caucus took place on May 25, 2016 at the Huntington Convention Center of Cleveland, with a record-breaking 800 attendees. The program kicked off with the Women of Note Awards Luncheon, that honored 16 influential women in the Northeast Ohio business community, including Jackie Woods who was the recipient the Cleveland Foundation’s first-ever Legacy Award. After the luncheon, guests attended the Summit, where they could listen and discuss important topics that affect women in the workplace and community. Along with the Summit and Awards Luncheon, this year also introduced the Greater Cleveland Purpose Expo where attendees were encouraged to visit with members of local organizations in the area during scheduled networking breaks.

Crain’s would like to extend a very special thank all of our sponsors and partners for supporting the Women of Note program over the years. This event would not be possible without you, and we’re excited to continute growing next year and beyond!

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Proton therapy opens ‘new door’ for UH Photon vs. new proton therapy

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

University Hospitals’ new proton beam treatment room looks like a typical patient room — simple, clean and modest in size.

But hidden behind a wall is a 20ton cyclotron supported by two gantry arms that rotate the machine 180 degrees around the patient — one floor below and above that unassuming treatment room.

That machine, weighing about the same as 105 VW beetles and stretching more than two stories high, is the “compact” version of the technology, which can take up an entire city block in other models.

UH is the first health system in Ohio to offer proton therapy, a form of radiation treatment with unique properties that target a tumor while reducing the effects on surrounding healthy tissue. UH expects to see its first proton therapy patients in late July.

“It’s the go-to radiation therapy for pediatrics, and then in adults, brain and spine are the most defined, but other tumors that are in difficult places where you don’t want to harm surrounding tissue also has (possible applications),” said Dr. Daniel Simon, president of UH Case Medical Center.

With regular radiation treatment, a fair amount of the radiation invariably impacts healthy tissue. About 70% of the radiation dose goes to the tumor. With proton technology, 90% or more of the beams go right to the tumor with relatively little leakage to surrounding healthy tissue, said Dr. Nathan Levitan, president of the UH Seidman Cancer Center.

This precision is especially important for children and adolescent and

Traditional radiation therapy uses photon (X-ray) beams to treat tumors. The beams pass through the body, to the tumor and then exit, exposing healthy tissue to exit radiation (in yellow).

The new UH Proton Therapy Center uses proton beams, which penetrate to a certain distance and then stop, avoiding exit radiation and reducing radiation exposure to healthy tissue. young adult patients with cancer or other tumors that need radiation, said Dr. Mitch Machtay, chair of radiation oncology at UH Seidman Cancer Center. Younger patients are more prone to long-term complications from radiation, he said, noting that for those who have many decades of life ahead of them, the concern is that radiation itself can cause cancer.

The dose-per-dose effectiveness of proton radiation is basically the same as other forms of radiation, Machtay said. Because there’s less radiation to surrounding tissue, there may be possibilities for a higher dose of radiation, or settings to combine treatments that wouldn’t have been possible with other types of radiation because of the risks involved.

“It opens a whole new door for re-

search trials and studies combining new agents with radiation,” Machtay said.

While there’s no question about the benefits of proton therapy in pediatric tumors and in many spine and brain tumors, research is ongoing for its application to other cancers, such as prostate, breast, lung and liver cancers, as well as head and neck tumors, Levitan said. And UH has the opportunity to further study whether the technique is superior to traditional radiation.

The Proton Therapy Center has been many years in the making. UH announced the new center in 2011, when it was clear that proton technology would be the next frontier in radiation therapy, Levitan said.

“It was really clear to us in order to

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bring the most up-to-date care, the best care to our patients, that we had to provide this technology,” Levitan said.

Today, there are only 20 proton therapy centers in the United States, many of which are the first generation of proton beam systems that require massive equipment taking up the space of a football field and that can cost upwards of $200 to $300 million.

UH signed an agreement in 2011 with Mevion Medical Systems to purchase the MEVION S250 Proton Therapy System, which delivers the same treatment in a smaller machine and at a greatly reduced price.

UH spent about $30 million on the equipment and facility expansion off the old emergency department space to house the “compact” system. UH is the sixth of Mevion’s compact systems in the country.

“We wanted to incorporate it here, not have it 10 miles away in the suburb, where they have a cornfield they can build it, but to have it actually integrated in the medical center and have it close to Rainbow Babies and Children’s Hospital,” said Dr. David Mansur, vice chair of the Proton Therapy Center.

Because of the massive size of many of the therapy centers, patients often have to be transported to a different facility for treatment, even in places that do provide proton therapy, said Dr. John Letterio, director of the Angie Fowler Adolescent & Young Adult Cancer Institute at UH Rainbow.

For Northeast Ohio patients, the nearest proton therapy centers were in Chicago or Philadelphia. Now, it’s an elevator ride.

“Our music therapists, our art therapists, our child-life specialists are coming with them, so there are familiar faces,” Letterio said. “It’s a comfort for the families, and certain-

ly a great convenience for our patients. And certainly for the physicians here it means that we don’t have to let go of our patients. They can stay here for all of their care.”

By the end of the year, Levitan estimates the Proton Therapy Center will see 20 patients a day. Since UH still is more than a month out from treating its first patients, no one is yet on the schedule — in large part because people can’t wait weeks to start their treatment. But Levitan said he has no question about the level of interest.

With proton therapy being a relatively new and uncommon treatment, insurance companies still are working out details of coverage. Negotiations at UH are underway to work with insurance carriers on reimbursement plans, Simon said.

Proton therapy is roughly double the cost of traditional radiation, and may not be the best choice for all patients.

Simon said it’s important that people understand that conventional therapies may be their best option, which is why the role of Seidman Cancer Center’s tumor boards — a multi-disciplinary team to help patients develop a holistic approach to treatment — is so important.

“We need to educate people to understand when this type of very specialized technology is available and is necessary and when it isn’t,” Levitan said. But for those who can benefit from it, the technology is incredibly exciting, he said.

For children who have decades and decades to live after treatment, and for many patients with brain and spine tumors, the ability to protect healthy tissue is critical.

“I believe — and many of my colleagues believe — this is going to result in a better quality of life for cancer survivors,” Machtay said.

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Esperanza’s new plan could double reach

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

Esperanza Inc. has historically focused on getting Hispanic students in Cleveland through high school, limiting its assistance beyond those years to financial support for college. Now, it plans to widen that net and make sure students of all ages have access to the support services they need.

The nonprofit’s board approved a new strategic plan for 2016-2018 at the end of April, said Executive Director Victor A. Ruiz. The organization will expand the parts of Cleveland it covers as the community it serves grows, as well as broaden its scope beyond grades 6 to 12 to include younger students and students in college.

Esperanza has long offered college scholarships — that was its initial purpose when it was founded in the ’80s — but its students face more barriers to college completion than just financials. Ruiz said many have family to care for or contribute to, so they may have to work part-time.

Others aren’t prepared for the academics or the independence college offers. And still others do face finan-

cial constraints, but for the basics like food and parking passes, which may not be covered by scholarships.

Because of its staff and its name (which means “hope” in Spanish), Esperanza tends to attract mostly Hispanic students, Ruiz said, but the group is open to anyone. It offers programming at its headquarters on West 25th Street and through a handful of schools in the Cleveland Metropolitan School District. Its last strategic plan, in 2010, was aimed at addressing the plummeting high school graduation rate, Ruiz said.

The group created a robust program around the Ohio Graduation Test and worked to engage parents in the educational system.

Today, he said, 97% of the students who go through its programs graduate. The new strategic plan will see Esperanza acting as a conduit for families and students to access services they need. For example, when it comes to serving younger students at the preschool through fifth grade levels, Esperanza doesn’t necessarily plan to start new programs of its own. It wants to first look for quality organizations in the region with which to partner, so it can serve as a trusted “bridge” to its families.

Being available as a “trusted” part-

ner at the collegiate level will be important, too, Ruiz said. Often, the resources students need are already available on campus or through government assistance, but students don’t know how to get access to them. Esperanza won’t be able to have physical locations on every campus, but Ruiz said the group will work to identify schools where many of its students attend, like Cuyahoga Community College or Cleveland State University.

This new plan means that Esperanza’s reach will grow in sizable ways. In 2015, the organization served about 750 students, Ruiz said — and the new strategic plan looks to nearly double that.

In order for Esperanza to grow at this level, it also will need to grow its infrastructure, Ruiz said. Ideally, that will mean ramping up and diversifying its fundraising efforts, doubling its about 20 employees and setting up shop in a new, modern space in the neighborhood. Ruiz said the developer is securing financing for the new space now, though he couldn’t say yet exactly where it would be located.

Bob Eckardt, executive vice president of the Cleveland Foundation, said the organization has been a

supporter of Esperanza for quite a while. The foundation’s most recent gift in December 2015 of $325,000 was made with the awareness of Esperanza’s plans to more fully support younger students, as well as those in college.

Eckardt said the foundation agreed those were important areas for Esperanza to explore. The group’s scholarship event is powerful, but there’s evidence that students, especially from inner-city schools, struggle in their first years at college away from their support systems, he said.

Building community And Esperanza has been forming a community that offers support beyond even the collegiate level through its alumni association for former scholarship recipients, which it has grown in recent years. The model sets it up so that those who benefited the most from the organization are the ones giving back, Ruiz said.

“We see our alumni as our future employees, mentors, donors,” he said.

William Rodriguez, a leveraged finance analyst at Fifth Third Bank in Cleveland, is one of those alumni.

He received scholarships from Es-

peranza while he was at Miami University and is now a council member for the group’s alumni association.

He said the type of community Esperanza offers gives people a “sense of empowerment,” and highlighted the Fiesta of Hope scholarship event.

Being surrounded by students who are succeeding helps inspire others, because they don’t want to be “left out,” he said. They too want to graduate.

Esperanza also wants to use its alumni association to formalize connections between its students and the corporate community. Ruiz said access to internships and co-ops is important for students.

Ruiz said he often hears companies say they want diverse candidates, while Esperanza’s students say they can’t find jobs in Cleveland.

Making those connections is a “winwin for everyone,” he said, “because the company is able to hire local talent that’s going to stay.”

But it’s not just about jobs for Ruiz.

“We know that the more education you have, the healthier you are, the longer you live, you know, the better quality life you have,” he said.

“So we really believe in the power of education.”

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Opinion From the Publisher / Editor

Time to shine, Northeast Ohio

Editorial

Zipping out An expensive olive jar. A bungled rebranding. A campus in turmoil.

Scott Scarborough’s rocky tenure as the University of Akron’s 16th president came to an abrupt ending last week after just shy of two years on the job when he and the university’s board of trustees agreed it was in the institution’s best interest that he resign immediately.

Surprising? Not particularly. Despite the ousting, the university still faces a number of significant challenges — namely lukewarm enrollment and fundraising — now with the added pressure of a national search for Scarborough’s replacement.

Earlier this year, we described calls for Scarborough’s ousting as premature. The man hired to rectify the university’s miserable finances — brought on by years of overthe-top spending with little oversight by an aloof board — deserved the opportunity to see whether he could patch the books and take the 146-year-old institution to the next level.

Scarborough temporarily stabilized the university’s finances, but continued enrollment woes this spring and the ill effects of his brash leadership style ultimately paralyzed his ability to implement his full vision.

When he arrived, he acted swiftly, announcing $40 million in unpopular cuts, which included axing more than 200 non-faculty positions and eliminating the university’s baseball team.

He unveiled — then backed off on — a baffling rebranding of the university as “Ohio’s Polytechnic University.”

Often overlooked, he also launched two new centers — one focused on data sciences and IT and another on entrepreneurship — to help elevate the university’s profile.

All told, not all of Scarborough’s ideas were terrible. He understood that change was needed, though the tact re-

quired to get the university to buy into his vision was considerably lacking.

It could be argued, too, that many of the still-active board members involved in Scarborough’s hiring should consider resigning as well.

The University of Akron is facing an identity crisis. In today’s higher education environment, a university must be more than a collection of buildings, academics, students and dorms. It has to stand for something. Scarborough understood that, but the word he used to describe that identity — “polytechnic” — was about as palatable as New Coke.

When Scarborough’s tenure began, a board member took him to dinner and said, “Scott, take that napkin on the table, take your pen, and draw a line down the center of the napkin. On the right-hand side of the napkin, write Ohio State, Miami University and University of Cincinnati. And on the left-hand side of the napkin, write the name of every other four-year university in the state.”

Scarborough’s task? To move the University of Akron from the left-hand side of the napkin to the right-hand side of the napkin.

Two years later, the University of Akron, which no doubt has some superb academic programs, still has a ways to go before becoming an elite public university.

In fact, that upward march may be steeper than ever for the next president.

In an era of overused business buzzwords, the word “collaboration” has lost much of its luster.

But if the last two years are any indication, the University of Akron is in dire need of a top executive who can relate to all of the university’s constituencies and deliver with finesse the harsh realities of competing in the current higher education environment.

Maybe the trustees should call Jim Tressel for advice.

PUBLISHER AND EDITOR: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS

MANAGING EDITOR: Scott Suttell (ssuttell@crain.com) SECTIONS EDITOR: Timothy Magaw (tmagaw@crain.com)

This is it. We’ve got butterflies in our stomachs, just like a little kid on Christmas morning.

We’ve been waiting so long for this moment. Will we seize it or squander it? Will we shine or will we whither in the spotlight?

I say let’s shine.

This is the time to show off Cleveland and a real opportunity to keep our momentum rolling. First, the NBA Finals. Then the Republican National Convention. They are gifts that can keep on giving, but only if we handle them right.

It was almost two years ago, July 8, 2014, when the Republican National Committee announced Cleveland as the site of the 2016 GOP convention, picking the best location in the nation over Dallas.

Three days later, on July 11, the prodigal basketball son reversed his “decision” and declared he was coming home to finally bring a championship to Northeast Ohio.

Elizabeth Who can forget that week? Car horns were McIntyre blaring and people were cheering on the streets of the Warehouse District that Friday afternoon. The celebration of the RNC wasn’t quite as public, but was no less enthusiastic in businesses and the offices of civic boosters.

Thinking back, 2016 seemed so distant then. We had plenty of time to plan, build and improve. And we did.

The clock, however, has wound down. Now it’s showtime.

Are you ready, Cleveland?

Thanks to LeBron James and the investment that Dan Gilbert has made in the Cleveland Cavaliers, the NBA Finals return to Cleveland this week for Games 3 and 4. A healthier Cavs team once again faces the Golden State Warriors. And if you prefer your finals on ice, the Lake Erie Monsters are battling the Hershey Bears for the AHL’s Calder Cup. That’s just the start. In six weeks, 50,000 people will descend on Northeast Ohio. More than 15,000 media professionals will be reporting on what goes on inside and outside of Quicken Loans Arena at the Republican National Convention. That’s more than triple the number for a Super Bowl. Add in the circus that is Donald Trump, and well, you get the idea: Huge media coverage. Hyuuuuge.

Much of that coverage will involve our story and will focus on Cleveland, our neighborhoods, our region and our people.

You can’t pay for that kind of marketing and national exposure. It is, indeed, our time to shine.

Now, a dose of reality. There are shadows outside of the spotlight, and we have plenty. Poverty. Crime. Blight in our neighborhoods. Pockmarked roads the conventioneers and Cavaliers will likely never see.

We need to resolve to continue working to solve those problems and to let Cleveland’s comeback reach all. There is a time to focus the light on those issues, but now isn’t it. Now, it’s time to put our best foot forward. If we do that, if we keep momentum rolling, our chances of solving those problems are that much greater.

Showing our good side goes way beyond the Cleveland Museum of Art and the Cleveland Orchestra, the revamped Public Square and the Rock and Roll Hall of Fame. Our people will make the biggest difference. Us. You and me.

So as we plant gardens, install new way-finding signs and sidewalks, and generally gussy up the joint, remember the best thing you can do is grow a smile and a polish up your friendly attitude.

Make our guests feel welcome and show them the best we have to offer. And invite them to come back.

In the case of the Golden State Warriors, they’re welcome to return next year to try to take the NBA title back from us.

WRITE US: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

SOUND OFF: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

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Web Talk Re: UAkron president exits Funny how they never call a spade a spade. Fact is, Scott Scarborough just got fired. Not sure if they’ll ever discuss the reasons why. — Robert Fritz We’ll see how greedy he is by how soon he drops off the keys to the mansion. And anyone want to bet on whether the family loves that $500 jar enough to buy it from UA? — Rbt Evans Good riddance.

— Eaglelover60InEastlake

Re: Cavs vs. Warriors The Cavaliers definitely fit the description of evolving upward.

The Warriors are fraying along the edges and beat a very dumb Thunder team. Our team isn’t stupid. And the postseason stats point our way. We’ve spent 12 months planning for exactly this moment. I like our chances.

— Donald Templeman Not to throw cold water on the premature coronation of the Cavs, but remember Golden State took 3 IN A ROW from an excellent Oklahoma City team. The Cavs may not be the same team as they were in 2015 or in the regular season this year, but neither is Golden State. — Jack Desmondi

Re: Revamped Public Square If Terminal Tower is Cleveland’s front door, then Public Square is the giant welcome mat.

I’m so happy that the center of our town is getting the attention it deserves. Bravo Jeremy Paris and all the donors who helped make it happen.

— Margy Judd

Re: Hotel jobs in Cleveland Success begets success. With all of these great new hotels, Cleveland should be able to attract more meetings and midsize to large conventions that, in the past, it has not been able to attract.

With the great restaurants, new bars, the revived Flats, East Fourth Street and the new convention center, Cleveland is in a much, much better position to compete for conventions that they frankly had no chance of getting 10 years ago.

— James Shellenburger

Re: Crain’s ranking of NE Ohio public companies I wonder if total market cap is the best measure of corporate rankings in light of all the multiyear stock buyback programs in effect.

Maybe a combined measure of book value, market cap and sales would be better. There’s something for a graduate thesis to consider.

— Robert Salmon

Personal View

How suspending the device tax is driving innovation

Lt. Antonio Matos Post Commander Ohio State Highway Patrol

Lynette Blasiman Director Safe Communities

By JOHN F. LEWIS JR. AND SCOTT WHITAKER

At a time when the news coming out of our nation’s capital and our political institutions can seem rancorous and more partisan than ever, it is worth noting that, from time to time, there are glimmers of hope.

One such glimmer was a two-year suspension of the 2.3% excise tax on medical devices. The suspension, which enjoyed significant bipartisan support, would not have been possible without support from both sides of the political aisle, including U.S. Sen. Rob Portman, R-Cincinnati.

As senator, Portman rightly pointed out during last year’s debate on the issue on Capitol Hill, “Ohio is home to many medical device companies, and this tax continues to threaten good-paying manufacturing jobs.” Portman understood then and understands now the deleterious effect a tax like this can have on innovation, entrepreneurship, job growth and Ohio’s overall economy.

Consider these facts. Ohio medical device and equipment manufacturers — which include well-known companies such as Steris, Cardinal Health, Midmark, Ethicon Endo-Surgery (J&J), Zimmer, NuVasive, Invacare and hundreds of smaller, entrepreneurial device firms — contribute roughly $6 billion to our state’s economy and account directly or indirectly for more than 35,000 jobs.

From 2013 through 2015, however, the three-year period the tax was in effect, Ohio’s bioscience industry felt the tax’s effects.

Many companies are on the record that this tax impeded investment and job growth, sometimes shifting activities to other global locations.

Thankfully, 2016 is already off to a much better start. At BioOhio, the state’s bioscience membership and development organization, our medical technology company members are already putting the monies set aside to pay the tax to good use — increasing their R&D budgets and adding jobs — and we are seeing positive results playing out across the state.

One happy emerging company is Minimally Invasive Devices. MID is a Columbus and Franklin, Ohio, company that has an innovative suite of products called FloShield, which actively keeps laparoscopes from getting dirty. That then provides hospitals with both outstanding clinical and economic benefits.

“The suspension for two years of the medical device tax will allow us to hire additional sales representatives,” said Dr. Wayne Poll, president and CEO of MID. Bob Schmidt, owner of five Cleveland-area medical technology companies — CleveMed, Flocel, Great Lakes NeuroTechnologies, NeuroWave Systems and Orbital Research — sums up the impact of the relief clearly: “Suspension of the medical device tax is helpful, as it frees up money for other R&D and growth.”

Examples like these demonstrate how fostering innovation — not hampering it — can lead to the creation of high-quality, wellpaying jobs and access to better care for patients, drive additional sales and make a significant and positive contribution to Ohio’s economy and competitiveness here in the United States and abroad.

We commend Sen. Portman’s leadership on this issue. We knew suspension of the medical device tax would be a “shot in the arm” for our industry. Suspension of the medical device tax was a good start. Its eventual repeal will be an even better finish, and we are confident Sen. Portman will help us see that through.

Lewis Jr. is president and CEO of BioOhio, Ohio’s bioscience membership organization, founded in 1987. Whitaker is president and CEO of the Advanced Medical Technology Association (AdvaMed), a national medical technology association.

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‘Dominant’ Bettcher looking to diversify

By RACHEL ABBEY McCAFFERTY

process. Areas for improvement are pitched, and a team is given authority over a project. It’s not a top-down approach, O’Donnell said. The company already had a distinct culture, but the autonomy offered in lean initiatives helps to improve it.

rmccafferty@crain.com @ramccafferty

Bettcher Industries Inc. has been through a number of changes in recent years. In fall 2014, the Birmingham, Ohio-based food processing equipment manufacturer became 100% employee-owned and has been making investments and upgrades in the plant since then.

The most recent investment was in the Bettcher Innovation Center, which is set to open officially at the start of June. Vice president of marketing Paul Pirozzola said Bettcher spent about $500,000 to turn 1,425 square feet in the company’s 108,581-square-foot headquarters into a test kitchen, a demo lab and a space for collaboration.

The space was previously used for older kitchen and meeting areas, as well as storage. The renovated space will now be used for everything from testing the restaurant equipment Bettcher makes to training new employees to educating customers on how to use the products, as well as giving employees a regular place to collaborate in-house.

Bettcher primarily makes blades and cutting equipment, mainly for the meat industry, though the company has been expanding its reach into other markets. It also makes equipment for the restaurant industry, as well as machines to keep the blades they sell sharp. The 72-yearold company has about 250 employees, about 205 to 210 of whom are part of the ESOP, said president and CEO Don Esch. Being able to take the company’s expertise in the protein processing industry and apply it to other markets is a natural step for

Growth industries

The 1,425-square-foot Bettcher Innovation Center includes a space for collaboration. (Contributed photo) Bettcher to grow, Pirozzola said. The growth of Bettcher’s Exsurco Medical Inc. subsidiary is a good example, as it took the blade technology Bettcher was familiar with and applied it to a new market: tissue donation. It helped the company diversify while remaining close to its “core,” he said.

And the new Innovation Center is designed to continue that kind of work.

“As we look at our market space, we are a dominant player in one portion of our industry,” Esch said. “And we hold a commanding market share there. And we know if we want to continue to diversify as a company, that we really have to grow outside that space.”

The company has about $84 million in sales annually, including its subsidiaries, Pirozzola said in an email.

‘Execute the work’ Esch said the efforts to diversify started a few years ago with the division of the sales and marketing teams, which allowed Bettcher to focus more on product development and innovation. Pirozzola said the sales team is very customer- and core business-focused, so it was helpful to have a separate group that could look into noncore opportunities.

About two years ago, the company formed the Bettcher Innovation Factory, an evergreen group of employees from different parts of the company focused on thinking about innovation, new product opportunities and collaborating with others. The company has also invested in marketing, product development and engineering and installed software for the product development process.

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“And so now, the Innovation Center really is sort of the culmination of a lot of that work,” Esch said. “It’s now giving us a real place, a visual, visceral, tangible place to execute the work.

And that’s really what’s so attractive about it for us right now.”

Since the ESOP, Bettcher has invested in other physical elements of the plant, creating a work café space for employees to meet and eat lunch, but also in a lean initiative that started last summer with the help of Magnet in Cleveland. Esch said the company had always been focused on improvement, but the lean initiative gives them a process within which to work.

Mike O’Donnell, a senior growth and innovation adviser at Magnet, said the lean initiative has been working to improve efficiency among employees and to get them more engaged in the improvement

Amid this, the company continues to look toward growth. Bettcher last updated its plant in 2008, when the company basically doubled its manufacturing and office space, Esch said.

Now, he said, it’s almost out of room again. Last year, the company moved its medical group — which, at this time, primarily makes blades used in tissue donation — to a second building it is leasing from its former owner about a mile from its main plant.

The subsidiary, which was started in 2010, has grown in terms of employees and business, Esch said. And it has a strong growth trajectory. Esch said the company plans to enter the medical device industry in 2017.

Another sector the company is attracted to is agriculture, Pirozzola said. Fruit and vegetable growers are looking for ways to partially automate their trimming and cutting duties.

Bettcher Industries has always “fostered an inventive spirit,” Esch said, but that took off even more after the ESOP process started in 2011.

The organization and leadership team are more open now to innovative activity, he said. And the employee-owners are motivated to grow and sustain the company. The talent always was there, Esch said, but now, some of the barriers have been removed.

“When you become an employeeowned company, the mindset changes,” Esch said. “There’s no doubt about it.”

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Focus

UNIVERSITY RESEARCH

HOLOLENS - P. 14 | NEOMED - P. 15 | GO BABY GO - P. 17

AS FUNDING POOLS FOR ACADEMIC RESEARCH

CONTINUE TO DRY UP BECAUSE OF BUDGET CUTS,

SAVVY STUDENTS TURN TO CROWDFUNDING

TO RAISE MONEY FOR THEIR SCIENCE

By DOUGLAS J. GUTH clbfreelancer@crain.com

While research is a critical piece of academia, the pursuit of knowledge isn’t free.

A nationally shrinking pool of money for research projects has led several academics from Ohio universities to raise smaller amounts of capital through the nontraditional means of online crowdfunding.

University of Akron fellow Bor-Kai “Bill” Hsiung recently harnessed crowdfunding to help pay for his biology-related research project. Using Experiment.com — a site billed as a platform for enabling scientific discoveries — Hsiung entered a competition for research ventures based on unusual animal traits like a gecko’s sticky feet or the improbable punching power of the tiny pistol shrimp.

Hsiung’s work aims to mimic the nanostructures of tarantula hairs.

Like his fellow Experiment.com competitors, the Taiwan native listed his proposal for friends, family and the general public to review and contribute to. The project raised $7,708 — putting Hsiung in third place overall — which garnered his research an additional $250.

Hsiung, who will use the funds to create 3D nano-printed models of spider hairs, said the long, arduous grantproposal process motivated him to try a different form of fundraising.

“A grant to the NSF (National Science Foundation) takes three to six months to prepare, and you won’t hear the results for another six months,” Hsiung said. “Even if all goes smoothly, it can take a year or longer to get the money.”

As government grants can run into the six figures, asking for a relatively small amount via crowdfunding was the logical choice.

“It’s definitely hard work. You have to allocate time to market your

research,” Hsiung said. “I learned how to communicate scientific ideas in a simple manner everyone could understand.”

Dr. Todd Blackledge, professor of biology and the Leuchtag Endowed Chair at University of Akron, said crowdfunding sites like Experiment.com are emerging in parallel to declining university research budgets. Federal support for all study and development, meanwhile, has SEE FUNDING, PAGE 16

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UNIVERSITY RESEARCH

CWRU harnesses the power of mixed reality

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

Mark Griswold, director of MRI research at Case Western Reserve University, arrived at Microsoft’s headquarters in December 2014 without a clue as to what he was there to see.

A few of his colleagues had already seen some exciting new technology, but were bound to secrecy. One told him, “I can’t tell you what it is, but trust me.” He didn’t set his hopes very high.

Even after seeing a video of HoloLens, a mixed reality device that allows users to interact with holograms, Griswold remained incredulous. Then, he donned the prototype HoloLens device and the first demonstration started, placing him on the surface of Mars.

“And immediately, it was as if my entire world had been rocked — just turned upside down,” said Griswold, who is also a radiology professor and director of Interactive Commons at the CWRU School of Medicine.

The moment he took the HoloLens off, ideas flooded in.

Right now, the focus has been on anatomy curriculum to roll out this fall for testing with students, but the applications reach far beyond medical education and health care.

Designers from auto manufacturers to architects could build prototypes with HoloLens, and then make simple programming adjustments instead of constructing an entirely new model. People shopping for furniture online could see what that armchair really looks like in their space.

“This is such a wildly different way

CWRU medical student Satyam Ghodasara wears the HoloLens to examine multiple bodies. (Microsoft photo) of seeing things that I don’t really know what it’s going to do,” Griswold said.

But that’s what makes it exciting.

A new frontier Last year, Cleveland Clinic and CWRU broke ground on a 485,000square-foot Health Education Campus, slated to open in 2019. Through this partnership, the Clinic and CWRU were among the early adopters to work with Microsoft in finding ways to use the HoloLens technology.

Dr. Neil Mehta, assistant dean for education informatics and technology at the Cleveland Clinic Lerner College of Medicine, has spent years

finding ways to make learning and teaching more effective and efficient with technology. He’s done various projects, but HoloLens is his first work with augmented reality.

Many virtual reality devices transport users to a different world, but the HoloLens projects holograms of materials or objects from another space into the real world.

“So imagine actually a sculpture sitting on a table, around which five people are sitting,” Mehta said.

“Each will see their viewpoint or perspective of it, but they can discuss it all together. And as they walk around, it keeps track of which view they’re looking at.”

A lot of anatomy work is based on

looking at a patient case — for instance, someone with a headache.

Students then do their own investigation and research the different parts of the anatomy and possible causes. The plan is for students to each have a HoloLens to help present and study each case.

At the Health Education Campus, which will not have any cadaver-filled laboratories, anatomy will be taught in three ways: with HoloLens, in a radiology reading room where students will learn imaging and through physical examination and ultrasound skills with healthy living models.

CWRU is maintaining its laboratory in the current facility to continue working with cadavers, but anatomy

lessons will be condensed into a two-week bootcamp for that dissection experience.

“What it’s really doing is compelling us to rethink what we’re doing and seeing if we can do it better,” said Susanne Wish-Baratz, a CWRU assistant professor of anatomy.

She’s quick to note HoloLens will help maximize and modernize teaching but will not replace cadaveric dissection, which has been used for more than a century to teach anatomy and still has a lot to offer.

The HoloLens device just offers a way to do things differently — and hopefully better.

Right now, anatomy is spread out over about a year and a half with cadaveric dissections about every other week. But as medical and scientific knowledge grows, the number of hours to learn anatomy has declined, Wish-Baratz said. Efficiency becomes key. Plus, there are some things that no medical student — or professional — can see in a cadaver or a living model, like exactly how the heart valves operate and open and close.

Dr. Elias Kikano, who just graduated from the CWRU School of Medicine this spring, helped create content for HoloLens. He learned anatomy the same way practically all medical students in the United States do: textbooks and cadavers.

“Versus with HoloLens, now I have the whole brain reconstructed in 3D with the tumor relative to everything else,” said Kikano, who’s staying in Cleveland as a resident in radiology at University Hospitals Case Medical Center. “It’s really great because you can cut away and SEE 3D, PAGE 18

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New NEOMED research area focuses on aging

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

The number of Americans living with Alzheimer’s disease — currently more than 5 million — is expected to accelerate rapidly over the next few decades, pushing scientists to find solutions. By 2050, the number of people over the age of 65 with Alzheimer’s could nearly triple, according to the Alzheimer’s Association.

With this in mind, and after an examination of its existing strengths, Northeast Ohio Medical University launched its fifth area of research focus: Neurodegenerative Diseases and Aging.

The new focus area, launched in early May, will initially focus on Alzheimer’s, Parkinson’s disease and glaucoma, all of which are showing similar progressions in costs and lives affected.

“These are diseases which are — to some extent — related to our aging population, but also are diseases that have multiple causes, environmental causes, genetic causes,” said Walter Horton, vice president for research at NEOMED. “And so we felt that this focus area would allow us to really address issues that have both a regional and national importance.”

The university’s strategic plan established a goal to grow each of the four current focus areas (Auditory Neuroscience, Community-Based Mental Health, Metabolic and Cardiovascular Disease and Musculoskeletal Biology) and identify a fifth linked to its burgeoning College of Pharmacy.

NEOMED already had some National Institutes of Health-funded in-

Seniors take part in exercises at NEOMED’s recent Take Control event focused on Parkinson’s research.

Judy Pinckard boxes at the event.

(Contributed photos) vestigators working on areas related to neurodegenerative diseases and aging, but not specifically within a focus area. Plus with labs and physical equipment that could support neurodegenerative diseases as a research area, it became the clear choice.

“So we had some funding, we had resources and we saw the regional

and national need for research in this area,” Horton said. “And that all kind of culminated in developing the concept of this fifth focus area and then moving forward to implementing it.”

Jason Richardson joined NEOMED about nine months ago to lead the new focus group, which he said is “a unique opportunity to build something from scratch.”

“We’re in a situation where there’s very few treatments available for neurodegenerative diseases,” Richardson said. “So we need to do something different, and that’s what we’re trying to do here.”

As director of the Neurodegenerative Disease and Aging Research focus area, Richardson said he wants to address in a collaborative way the broader scope of neurodegenerative diseases — not just searching for a drug but also figuring out how to improve quality of life. The College of Pharmacy will be a “major advan-

tage” in that goal, he said, as quality of life often relates to how well medications are managed.

The new focus group also offers a chance to “de-silo” a lot of the work to connect a range of scientists to bring their expertise and a fresh perspective. Richardson said he plans to make some hires over the next few years, but also focus on building collaborative relationships with the network of health systems, hospitals and universities in the region.

But a lot of experts are already within NEOMED, he said. For instance, many people with Parkinson’s and Alzheimer’s die from aspiration pneumonia when food gets into their lungs as they lose the ability to swallow, Richardson said. The university already has a leading expert doing research on the mechanics of swallowing.

To pay for all this research going forward, Richardson emphasized the

need for federal funding, foundation money and private philanthropy.

The annual National Institutes of Health budget to support research in diseases from cancer to heart diseases to Alzheimer’s is around $31 billion — only a fraction of the annual cost of Alzheimer’s alone.

Alzheimer’s will cost the nation $236 billion this year, and if things continue as they have, that price tag is projected to soar to $1 trillion in 2050, according to the Alzheimer’s Association.

He noted that the NIH budget has remained pretty stagnant for more than a decade, leaving many grants unfunded.

“We’re missing a lot of great science,” Richardson said. “It’s frustrating as somebody who reviews a lot of these grants that you go and you see some of the best science out there not being funded.”

But NEOMED has support from NIH, foundations and private sources for those three main diseases of the new focus area: Alzheimer’s, Parkinson’s and glaucoma. That funding is part of what brought him to NEOMED, he said.

Horton is optimistic that more funds will be available going forward to continue to expand this research.

“We all realize we have to invest more in this at the federal level, by the private sector and philanthropy,” Horton said. “So we think there will be an increase in funds available just because we know there has to be a response to these conditions. We think we’re positioning ourselves both to be able to acquire more funding, but more importantly, to actually have an impact on the disease.”

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UNIVERSITY RESEARCH ADVISER: Christine Dodd

Collaboration is key in grant applications Universities are key drivers of economic growth and often rely on and partner with local organizations to obtain grants and cooperative agreements.

For example, recently the Centers for Medicare and Medicaid Services issued a $4.51 million funding opportunity, known as Accountable Health Communities, which is a fiveyear demonstration project designed to reduce health care costs and utilization by identifying health-related social needs of Medicare and Medicaid beneficiaries.

The rationale behind this initiative is that it is not only medical needs but also social needs such as housing, transportation or utilities assistance that affect overall health outcomes.

The United Way of Greater Cleveland, through its 2-1-1 Help Center, established in 1923, has been helping individuals in need daily connecting them to vital community services.

The United Way, in partnership with The MetroHealth System, St. Vincent Charity Medical Center, Care Alliance, and the Cleveland Clinic as well as many community service providers applied for this opportunity to help high risk populations obtain access to critical social services. I had the opportunity to consult on the Accountable Health Communities model and help write the application.

Case Western Reserve University’s Center on Urban Poverty and Community Development served as a key academic partner on this op-

Christine Dodd is the Cleveland-based director of public affairs for Ice Miller. portunity. The Center, founded in 1988, works to inform public policy planning through data and analysis to address urban poverty. The Center is highly experienced in data collection, gap analysis and program evaluation.

In this model, the Center would integrate data collected from the hospital partners to evaluate and assess social needs and health outcomes.

It is opportunities like the Accountable Health Communities project that universities want to participate in because they have the

requisite infrastructure and experience to effectively evaluate the success of the initiative.

I also had the opportunity to help Ohio University — in partnership with the University of Akron, Ohio State University and Lorain County Community College — submit an application for the National Science Foundation Innovation- Corps grant. The I-Corps program was designed to strengthen the innovation ecosystem at the local and national levels.

Funding from the program would be used to create I-Corps teams at universities composed of student entrepreneurs, academic researchers and business mentors to train in a curriculum focused on entrepreneurship. Ohio University partnered with other key universities in Ohio demonstrating collaboration and if funded, the sharing of best practices.

One of the key components of success in these grant applications is collaboration like the ones found at United Way and Ohio University.

Broad public-private partnerships with the community actively engaged often makes for a more compelling application and enhances the chances of being funded.

I often advise that we reach out to community partners who can give letters of support and agree to actively engage in the implementation of the project when/if funded. It is these types of partnerships that truly enrich the application as well as the actual implementation of the project.

LEARN how we can help build your career, take it to the next

FUNDING

site. Fussner’s project, which identifies risk factors contributing to depression and eating disorders among adolescent females, raised $580 from 10 contributors, surpassing its original goal of $525.

It’s a modest amount, admittedly, but Fussner said she is thankful to receive funding to compensate participants involved in the study. In seeking donations, Fussner and her partners posted pertinent information to their social media accounts.

The project leader also used contacts from her University of Notre Dame undergraduate alumni group to further market the effort.

“I was genuinely excited to share my project, which I believe helped others understand the importance of the work,” Fussner said.

Frustration with the unpredictable, politically motivated nature of science and academic research funding led Cindy Wu to co-create Experiment.com — one of a growing number of websites dedicated to advancing the findings of researchers. Introduced in 2012, the site has backed projects in economics, physics, biology and medicine.

Like Kickstarter, Indiegogo and other crowdfunding sources, Expermient.com lets individuals donate to projects and receive a gift in return.

The New York-based platform’s science focus grew from disillusionment of potential projects not getting the funding they deserved.

“Success for us is a researcher who is able to complete and share a project,” Wu said.

Experiment.com is an “all or nothing” prospect, meaning money is only collected if the funding goal is met, with the site taking a 5% cut of funded projects.

“Whether a project is funded or not, this (website) is one of the first times there’s a crowd invested in the outcome of research,” Wu said.

“That’s engagement you’ll never get from any other type of grant.”

Though crowdfunding will never fully replace government grants, it still serves as an innovative option for scientific study, said Miami University’s Oris.

“It adds another element to graduate and undergraduate research,” he said.

CONTINUED FROM PAGE 13

fallen 16% over the past five years, according to the Association of American Medical Colleges.

“Accounts my students were counting on for grad research are being cut off,” Blackledge said. “There is no other way to fund these projects.”

The speed and flexibility of crowdfunding is particularly important for scientific research, insofar as events like the El Niño weather phenomenon have a shortened window where effects can be studied.

“The first couple days of the funding process are especially important,” Blackledge said. “There’s a chance to build positive momentum, but if you fall behind it’s hard to catch up.”

Miami University in Oxford, Ohio, launched a crowdfunding site called HawksNest in April. The platform allows faculty, students and staff to post a project for funding. An internal review team vets the proposal, which remains on site for a maximum of 45 days after approval.

James Oris, Miami’s associate provost for research and dean of its graduate school, pointed to crowdfunding’s ability to get small-scale requests off the ground. HawksNest organizers encourage cash-seekers to scale down the scope of projects if costs exceed $6,000.

“We’re also tapping into an alumni base that supports these projects at smaller values,” Oris said.

Crowdfunding for academic research has its drawbacks, some observers say. For example, the relative speed with which group-sourced money is raised negates the peer-review process that ensures dollars are being spent for their stated purpose.

However, HawksNest projects undergo a thorough review by program administrators, Oris said.

“Our main point is to find different ways to expand research and scholarship opportunities for our students,” he said.

Lauren Fussner, a graduate student in clinical psychology at Miami, is lead investigator on the first undertaking successfully funded through the school’s crowdfunding

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CRAIN’S CLEVELAND BUSINESS z JUNE 6 - 12, 2016 z PAGE 17

CSU research explores childhood mobility

By DOUGLAS J. GUTH clbfreelancer@crain.com

For infants, mobility drives development and their exploration of the surrounding world. A pair of Cleveland State University researchers is studying high-impact technologies that promote independent movement among children with physical disabilities.

Cleveland State is a pilot study site for GoBabyGo, an international program that develops modified toy racecars and hands-free harness systems to assist disabled infants in their movement growth. The local effort, housed at the university’s Center for Innovation in Medical Professions, is led by faculty members Andrina Sabet and Madalynn Wendland, and works exclusively with children with Down syndrome.

The program adapts commercially available ride-on toy cars — like a Disney Lightning McQueen convertible — and retrofits them with lowcost modifications so they can be operated by infants as young as seven months. Participants in the twoyear study are tested in their modified racecars for balance, strength and coordination.

“Kids with Down syndrome walk two years later than their peers,” said Sabet, a physical therapist and clinical research project manager. “De-

1 2 3 4 5

layed mobility creates gaps in their ability to socialize, play with toys and other cognitive processes that take place with moving and exploring.”

At current, the Cleveland State team is working with eight subjects ages 11 months to 19 months, Sabet said. Another 35 to 40 children have attended community-based events at the school’s lab. Funded by $220,000 in grants from the National Institute of Health’s Eunice Shriver National Institute of Child Health and Human Development, the project has put 50 to 60 adapted vehicles into the community. Each car costs about $250 once it has been modified.

“Mobility is something we all take for granted, but it’s key in all we do,” Sabet said. “Not having that movement impacts every aspects of (these kids’) lives.”

Cleveland State investigators hold bi-monthly sessions at parents’ homes, said Wendland, an assistant professor and physical therapist who coordinates the program’s community outreach endeavors. Meanwhile, children with Down syndrome or mobility issues derived from medical issues such as spina bifida or cerebral palsy can ride souped-up cars at the school lab.

Along with examining the children’s time aboard their vehicles, program officials assess videos taken by parents of kids both driving the

About 60 adapted vehicles are in the community. (Contributed photo) cars and moving by themselves with no mechanical assistance. Early results have shown improvement in mobility and positive trends in language and fine motor skills. Such activity will only help participants

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avoid what study coordinators call “learned helplessness.”

“When babies aren’t moving on their own, they don’t develop an inner drive,” Wendland said. “These devices provide them a mechanism

to accomplish all the things they need to do in their daily lives.”

Raising awareness about locomotion and development is critical to GoBabyGo’s mission.

“We want to get kids more active and engaged alongside their peers, versus their parents pushing them in a stroller,” Wendland said.

Combining neuroscience, social justice, biomedical engineering and a wealth of community engagement, the program has 60 chapters worldwide, said Dr. Cole Galloway, a University of Delaware professor who launched GoBabyGo in 2006 with colleague Sunil Agrawal.

Galloway travels to Cleveland regularly to observe activities at CSU’s lab, and is impressed by how quickly area parents have taken to his lifechanging technology.

“Cleveland recruited its cohort of babies fast,” said Galloway. “That (team at CSU) is the hub that makes this wheel roll.”

The project’s two local principals are proud to be part of a movement that has gained global support. Following the program’s conclusion next year, Sabet and Wendland want to run a much larger study that uses not only modified cars, but also special harness systems that free children’s hands and feet for additional exploration and sports-like activities.

“We want kids to have opportunities to play,” Sabet said.

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UNIVERSITY RESEARCH

3D

CONTINUED FROM PAGE 14 see how it relates to the other anatomical structures and really see the whole picture in a different way that’s not really possible in just a regular textbook.”

Endless possibilities Outside the classroom, HoloLens could help radiologists translate imaging diagnostic information to physicians who are less versed in reading 2-D data from a CT scan or MRI, Mehta said. It could also be incredibly valuable in translating that information to patients, to help them make better-informed decisions.

In the operating room, surgeons are often looking up at a screen for information then back down to the patient. With HoloLens, they could project a 3-D image onto the patient’s body to know exactly where they’re taking a biopsy of, to see vital information off to the side or many other applications, Mehta said.

The possibilities are seemingly endless. Scientists could look at the very small, such as molecules, or the very large, like examining how galaxies collide. Children could learn

about the solar system.

“I think that this is going to impact every corner of our university, which is why we’re investing all this time and energy and effort here, but exactly what the everyday consumer is going to do, I don’t know,” Griswold said. “I hope that every kid has it in their backpack.”

Many video games are built on the same software HoloLens uses, which helps open the door to the gamification theory of learning, which makes learning fun and motivates students to continue learning, Mehta said.

Children spend hours on a game doing the same thing over and over again so they can advance to the next level.

“No parent has to tell them that this is something you have to do,” he said. “They just do it and they figure it out themselves. It’s so similar to education. We want students to progress forward, but they need to master one level before they go to the next.”

Griswold expects this technology to have as big of an impact on society as the television did — or bigger.

“We can’t even predict how far this is going to go right now,” he said, “but even what you can predict, what’s going to happen in the next four or five years, is just massive.”

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 TMG Services Inc. 8100 Grand Ave., Suite 100, Cleveland Date filed: Feb. 11, 2016 Type: Employer’s withholding Amount: $10,524 Learning Land Day Care Center Inc. 1440 S. Green Road, South Euclid Date filed: Feb. 19, 2016 Type: Employer’s withholding, unemployment Amount: $10,400 Fishermans Wharf Pier 2 Inc. 25021 Rockside Road, Bedford Heights Date filed: Feb. 11, 2016 Type: Failure to file complete return Amount: $9,266

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Post Painting Inc. 24816 Aurora Road, Bedford Heights Date filed: Feb. 19, 2016 Type: Employer’s withholding Amount: $7,549

Type: Employer’s withholding, corporate income Amount: $13,732 AMA Ventures Corp.

15973 Broadway Ave., Maple Heights Date filed: March 6, 2015 Date released: Feb. 19, 2016 Type: Employer’s withholding, corporate income Amount: $6,511

Rebeeb LLC 5250 Transportation Blvd., Garfield Heights Date filed: Feb. 19, 2016 Type: Employer’s withholding Amount: $7,228

Berea Moving & Storage Co. 4755 W. 150th St., Suite J, Cleveland Date filed: Nov. 24, 2015 Date released: Feb. 19, 2016 Type: Employer’s withholding, unemployment Amount: $55,504

Northeastern Roll Tools Inc. 2068 Carabel Ave., Lakewood Date filed: Feb. 11, 2016 Type: Corporate income Amount: $6,426 Imagelab Media Services Co. LLC 2331 Superior Ave. E, Cleveland Date filed: Feb. 11, 2016 Type: Employer’s withholding, partnership income Amount: $6,385

Buckeye Gear Co. 5130 Richmond Road, Bedford Heights Date filed: Sept. 3, 2015 Date released: Feb. 11, 2016 Type: Employer’s withholding, unemployment Amount: $25,760

Safe Systems Inc. 12100 Snow Road, Suite 9, Parma Date filed: Feb. 11, 2016 Type: Employer’s withholding, unemployment Amount: $5,803

Encompass Group LLC 3615 Superior Ave., Suite 4403B, Cleveland Date filed: Dec. 11, 2015 Date released: Feb. 11, 2016 Type: Employer’s withholding Amount: $5,388

Housing Advocates Inc. 3214 Prospect Ave. East, Cleveland Date filed: Feb. 11, 2016 Type: Failure to file complete return Amount: $5,300

Fifties Car Wash Inc. 18534 Pearl Road, Strongsville Date filed: April 15, 2015 Date released: Feb. 19, 2016 Type: Employer’s withholding Amount: $163,857

I Can Enrichment Center LLC P.O. Box 28752, Cleveland Date filed: Feb. 1, 2016 Type: Failure to file complete return Amount: $5,081

Fifties Car Wash Inc. 18534 Pearl Road, Strongsville Date filed: April 15, 2015 Date released: Feb. 19, 2016 Type: Unemployment, failure to file complete return, corporate income Amount: $32,528

LIENS RELEASED ADI Transfer Corp.

231 E. 206th St., Euclid Date filed: Sept. 3, 2015 Date released: Feb. 1, 2016

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Business of Life

Shaking up some wine stereotypes

By DOUGLAS J. GUTH As Graham Veysey sees it, wine needn’t be fussy.

He respects wine’s storied history, but considering the unofficial brand slogan for his canned wine company MANCAN is “crack one open and whack one back,” Veysey doesn’t want his would-be customers to get caught up in fancy stemware or daunting wine lists.

“We represent a core value of fun,” said Veysey, whose company is headquartered in the repurposed Ohio City Firehouse on Cleveland’s near West Side. “We’re eliminating the notion that wine is a chore.”

As its name suggests, MANCAN is a guy-specific wine product, one that recently entered the Ohio market after finding success at more than 100 establishments in California. The company’s 12.6-ounce aluminum containers — equal to half a bottle — are available at Platform Beer Co., Market Garden and Nano Brew.

Baseball fans craving an alternative to beer, meanwhile, can also enjoy a manly can of wine at The Corner, the bar in Progressive Field’s Right Field District.

“We’re really excited about the traction and amped that we’re now in our home state,” said Veysey, a Shaker Heights native who runs the venture with his wife, Marika, and fellow Clevelander Fisk Biggar.

MANCAN’s gendered marketing — a demographic comprised of “millennials and soccer dads,” according to Veysey — is not meant to be a political statement. However, as small, pink cans of wine are marketed toward women, there’s no reason why men shouldn’t have their own brand, too.

“You can’t be everything to everyone, and successful products usually aren’t,” Veysey said.

Simplifying wine consumption was MANCAN’s main inspiration.

Veysey first thought of the idea two years ago upon visiting a bar with a friend. Veysey wanted wine, but wasn’t in the mood to comb through a wine list. Veysey asked his friend if there was such a thing as canned wine, which led the pair to search their smartphones. Not much came up besides mini-cans of sparkling wine — complete with straws — from film director Francis Ford Coppola’s winery.

Graham Veysey’s MANCAN is headquartered in the repurposed Ohio City Firehouse. (Ken Blaze photos)

“I called my three brothers to ask if they wanted wine in a can, and they said they’d fill their fridges in a heartbeat,” said Veysey, who bought the mancanwine.com domain that night.

The next 18 months were spent developing the brand. Veysey and his partners leased a production facility in Sonoma County, Calif., hotglue gunning some of the first cases themselves prior to distribution.

Since launching in October, MANCAN’s non-vintage blends are now found in four states, with deals for at least five more states in the offing.

Though Veysey has yet to crack the international market, he has engaged potential distributors in Canada, Sweden and Norway. In April, MANCAN reached a partnership agreement with Columbus-based Premium Beverage Supply and has distribution arrangements with two other entities in Connecticut and West Virginia.

The product comes in red, white and fizz, with a rosette to be introduced this summer. Each can has a special lining to prevent liquid from ever touching the aluminum, which Veysey said preserves the wine’s flavor.

“We wanted to keep it simple,” he said. “It’s about universal taste appeal.”

MANCAN is just one of Veysey’s entrepreneurial endeavors. He also owns North Water Partners, a video production firm, and has developed a number of local real estate projects including the former firehouse that now serves as MANCAN’s administrative, marketing and account management home.

The Ohio retail price for a single can of MANCAN’s finest is $4.99, with four-packs going for $19.99.

Platform Beer Co. owner Paul Benner was initially intrigued by both the idea and Cleveland-centric packaging that includes images of Veysey’s Ohio City HQ. “People think it’s a cool concept,” said Benner. “This may not work in a more white-cloth environment, but our customer base is about trying out non-traditional products.”

He added, “There’s going to be skeptics, especially with something so traditional like wine, but the only way to get over that is to experience the product. Graham saw the opportunity and jumped on it.”

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z JUNE 6 - 12, 2016 z CRAIN’S CLEVELAND BUSINESS

BUSINESS OF LIFE

Source Lunch Jeneen Marziani is a veteran of the banking industry with a unique background.

Born in Germany while her father was serving in the military, her family landed in Cleveland upon their official return to the states. Despite moving several times as a child, she often frequented Northeast Ohio to visit relatives with her parents and four siblings. It’s why she’s always called Cleveland home. It’s fitting, then, that Marziani came to manage this state for Bank of America from its Cleveland offices. She joined the bank in 1993, holding several roles before ascending to Ohio market president in 2009. Beyond seeing her share of the world, she’s also seen a lot transpire in Ohio and its banking sector, having taken her current role at the peak of the last financial downturn. Today, her job focuses on growing the Ohio market overall, and Cleveland continues to play a big role in that despite the company condensing its presence here a couple years ago. — Jeremy Nobile

It’s been two-and-a-half years since Bank of America closed several consumer and mortgage banking offices across the country, including those around Cleveland. Are there any talks to restore any similar sort of operations in this region?

We have an established presence already in this market, yet we are constantly looking at ways to further grow our brand in Cleveland. That may involve establishing more offices in the area at a future time, or not. At this time, we do not have any definitive plans for new offices.

Are there any other strategies the bank is focusing on in Northeast Ohio right now that you can share? Is this generally considered a growth region for the bank?

We are focused on highlighting our already significant presence in Northeast Ohio and across the state. We have 1,500 employees across the state, our headquarters in Cleveland, and other offices in Columbus and Cincinnati. We’re also focused on adding resources and growing our business locally, because we have unique financial capabilities to help Northeast Ohio companies grow internationally, organically and through acquisitions. In 2015, we generated over $490 million in new loans to Ohio commercial businesses, which is a 30% increase over 2014. We work with many middle-market companies

that are looking to grow and expand. Nationwide, we have grown our core middle market asset-based lending loans by 48% from 2012 to 2015. Additionally, we see growth in the area of commercial and industrial lending.

Any plans for retail branches in Cleveland? Or are those just not necessary today?

While there are obvious advantages to having financial centers in Cleveland, there are also many resources that enable customers to have a similar experience without going to a brick-and-mortar location. Online banking and the advancements of smartphone applications have definitely reshaped the way in which a large majority of people are banking today. Today’s customers literally have the bank in the palm of their hand.

According to our data, more than 20 million Bank of America customers use mobile banking.

What industries do you see growing right now in this area or in general across the state?

Growth in Ohio continues to mirror national trends. We see growth in manufacturing with an emphasis on advanced manufacturing.

Medical and bioscience-related also continue to grow, as we’ve seen here in Cleveland.

Agri-business also remains a large industry, not as much in the immediate Cleveland area, but across the state as a whole.

Jeneen Mariziani

What’s it like to be a female leader in the banking industry?

Did you encounter any challenges that led you to the position you’re in today?

As a veteran of 21 years in the industry, it is an honor to now be the leader of a 1,500-person team. Being one of the few female financing employees in my early years, it wasn’t easy. However, I continued moving forward, focusing on how I could become a better leader and overcoming challenges. Now as a leader, I can better understand each step of the process — having done it myself — and can encourage all employees to work together as a team.

What kind of advice do you share with other women in the finance sector who aspire to similar success as yourself?

The most important piece of advice would be to speak up. It’s easy for us, as females, to agree and keep the peace, but this won’t get you too far. If you speak up, share your thoughts and ideas, people in the room will start to notice you and identify you as a leader.

Additionally, find a mentor. Lean on someone who inspires you and don’t be afraid to ask him or her for guidance. This will take you far. Lastly, make sure you find a workplace that has an interest in your personal growth, as well as your professional career. Working for a company that actually cares about its employees, whether they are female or male, has positively made an impact to my success as a female in the finance sector.

FINANCE

FOUR THINGS: Travel favorites

The mountains outside Scottsdale and Phoenix.

We love to hike and bike and spend time outside there. And Madison, Ohio.

My parents live out there right on the water.

Hobbies

My kids are my hobby. My daughter is into lacrosse, soccer, volleyball and basketball. And my son plays hockey, football and basketball. The kids are also teaching me chess.

On the move — a lot

I’ve moved 14 times in my life — it’s part of being in a military family — and went to three different high schools. It helped me form better relationships and make them quickly.

Professional advice

Slow down. I try to teach my kids to slow down, enjoy the time you have and the people you’re with.

And also don’t lose your creativity. It’s something I even tell myself to this day.

LUNCH SPOT Cedar Creek Grille 2101 Richmond Road, Beachwood 216-342-5177 cedarcreekgrille.com

The meal One had the Faroe Island Salmon Salad with baby arugula, potato straws and lemon vinaigrette.

The other had the Derby Cobb Salad with wood-grilled chicken, bacon, avocado, egg, crumbled blue cheese and buttermilk dressing.

The vibe Lavish décor creates a rather ritzy feel to complement a moderately priced menu. Some items seemed a little expensive.

The overall atmosphere has a semi-formal to semi-casual feel. Expect a bit of a crowd. Service was good despite the busy lunch rush.

The bill $35.63 + tip

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CAVS

CONTINUED FROM PAGE 1 berths in the Eastern Conference finals, and they reached the 50-win plateau three times.

It might be two weeks before we know if James is able to deliver a championship even he said he couldn’t promise when he announced his return to Cleveland with a heartfelt letter in Sports Illustrated.

And if these Cavs fall short against a Warriors team that entered Game 2 of the Finals three wins shy of cementing their place in the greatest teams of all time discussion, you can be certain James’ legacy will get around-the-clock analysis on every ESPN property.

But that’s just noise.

James’ value is easily quantified by wins and losses, and championship triumphs and failures.

His significance goes far beyond that, though.

Economists are correct when they say the financial impact of sports on a community is often overstated be-

cause it’s really just a reallocation of our entertainment dollars. The more we spend on the Browns, Cavs and Indians, the theory goes, the less we do on trips to the movie theater or our favorite local restaurant.

With James, that impact is real for Northeast Ohio, because of the outof-town visitors and international eyeballs he brings to the franchise and region.

Demand for Cleveland hotel rooms jumped between 5% and 9.9% in April, May and June of 2015, when the Cavs embarked on their first Finals run in eight years. Hotel revenue increased at least 11.5% in each of the three months.

The Cavs have tripled their social media following since 2013-14 — James’ final year in Miami. More than a quarter of the traffic to Cavs.com — 26% — is from international users. More than half of the franchise’s 5.5 million Facebook followers live outside the U.S. The Cavs, who are as much of a well-run marketing force as they are a financial behemoth, deserve quite a bit of credit for that.

But you don’t need Maverick Carter or Rich Paul to tell you that a

ton of that success is because of one of the most famous, and impactful, athletes on the planet.

James is closing in on 74.9 million combined followers on Twitter, Facebook and Instagram. Now that Kobe Bryant (37.1 million) has retired, the only NBA player within 44 million of LeBron is Kevin Durant, at 31.8 million followers as of June 2.

What’s more amazing is at age 31 and approaching 47,000 combined regular-season and playoff minutes, James shows no signs of slowing.

Michael Jordan retired after playing 48,485 minutes in the regular season and playoffs. James is already more than 5,000 minutes — 104 games without a breather! — ahead of Larry Bird and Magic Johnson.

Yet, there’s no concern that next season he’ll fall off, and the Cavs won’t be back in the championship picture.

He’s often reminded us of how difficult it is to win an NBA title.

We’d argue that what he’s doing — 13 years in, with an often-absent jump shot the only noticeable drop in his game — is even more grueling, and breathtaking. — Kevin Kleps

Tourism impact 9.3% to 58%: The range of year-over-year revenue increases for

Cleveland hotels during the eight-day span that covered the three NBA Finals games at The Q in 2015.3 and 4.

Digital reach 10 million: The Cavs passed 10 million combined followers on

Twitter, Facebook, Instagram, Snapchat and Weibo during the season.

The total has almost tripled since the end of the 2013-14 campaign.

83%: Year-over-year growth in the Cavs’ combined Facebook, Twitter and Instagram followers. The total jumped from 5.1 million in May 2015 to 9.4 million at the end of last month.

League revenue 50%: About half of the postseason ticket revenue goes to the league, which puts the money in a pool that is split by the 16 playoff clubs.

Media attention 500: Reporters, photographers and videographers who are expected to be at The Q for Games 3 and 4.

1,500: Anticipated media for Games 3 and 4 once tech support and other crew members are included.

ADVERTISING

Crain’s People on the Move promotional feature showcases Notheast Ohio job changes, promotions and board appointments.

Guaranteed placement in print, online and in a weekly e-newsletter can be purchased at www.crainscleveland.com/peopleonthemove.

FINANCIAL SERVICES

CONSULTING

Greg Gens and Terry Mosier

Patricia J. Jamieson

Roshonda B. Smith

Chief Financial Officer and member of the board of the Boyd Watterson Holding Co.

Vice President, Community Development Relationship Manager

Boyd Watterson Asset Management, LLC

Huntington Bank

Ms. Jamieson will oversee all Boyd Watterson's corporate and subsidiary finance operations. In addition, she will work with management to formulate and implement its Strategic Management Process firm-wide.

Client Delivery CFOs FocusCFO

Stephen A. Perry

Greg Gens joined FocusCFO in northeast Ohio. He has extensive experience in planning, sales, and operations at the transactional and strategic levels in closely held manufacturing companies. As a Client Delivery CFO for FocusCFO, Greg provides flexible, onsite CFO services to provide sound financial management, forward-thinking insights and tools, and proactive financial strategies to improve internal cash flow, reduce business risk, and increase the health of small and medium-sized businesses.

FocusCFO welcomes Terry Mosier to our northeast Ohio team. Terry has more than 25 years' significant leadership roles in finance, administration, and operations and in his own business. As a Client Delivery CFO for FocusCFO, Terry provides flexible, onsite CFO services to provide sound financial management, forward-thinking insights and tools, and proactive financial strategies to improve internal cash flow, reduce business risk, and increase the health of small and medium-sized businesses.

ARCHITECTURE

ARCHITECTURE

Matt Hallal

Alek Bosoy

Project Designer

Senior Project Manager

ThenDesign Architecture (TDA)

ThenDesign Architecture (TDA)

TDA welcomes Matt Hallal as a project designer. With three years of experience, Matt has worked on both renovation and new construction projects for public and private clients. He is currently on the team for several projects within TDA's education and sports design studios. Matt is a graduate of the University of Detroit Mercy, where he earned a Master's of Architecture. Learn more about TDA at www.thendesign.com.

TDA welcomes Alek Bosoy as a senior project manager. Alek has over 20 years of experience in the preparation of technical documents and construction administration on a wide variety of project types. He is currently on the team for several of TDA's hospitality projects, including the new Aloft hotel in North Olmsted. Alek is a graduate of the Rostov State Construction Engineering University, where he earned a Master's of Architecture. Learn more about TDA at www.thendesign.com.

FINANCIAL SERVICES

Executive Vice President and a member of the board of directors of Boyd Watterson Holding Co Boyd Watterson Asset Management, LLC He will continue to serve as a member of the Real Estate Investment Committee and is responsible for advising the real estate team on the firm's strategy of owning buildings leased to the U.S. General Services Administration (GSA). During his tenure at the firm, Mr. Perry has expanded his role from focusing on real estate and GSA relations to working on the Strategic Management Process throughout each of Boyd Watterson's business lines.

Thomas J. Tarantino General Counsel Legal/CCO Boyd Watterson Asset Management, LLC Mr. Tarantino will assume responsibility for overseeing all legal and compliance matters for Boyd Watterson. In addition to his role as General Counsel/CCO he will oversee legal matters pertaining to the company's real estate investment management holdings across the U.S.

Roshonda Smith has been named vice president, community development relationship manager for Huntington Bank's Cleveland and Akron/Canton regions. A native of Cleveland, she has over 20 years of experience in the financial services industry with positions in retail, small business and investments. Her retail background includes an emphasis on low-to-moderate income borrowers. Roshonda is active in the community, serving in several leadership roles.

LAW Gregory L. Watkins Associate Frantz Ward LLP Frantz Ward is proud to add Gregory L. Watkins to its Corporate/M&A Practice Group.

Greg focuses his practice on business and corporate law. He has experience in mergers and acquisitions, representing sellers and buyers in transactions involving privately held companies. In addition, Greg counsels clients on general business matters, including formation, organization and structure, governance, compliance, contract negotiations, and exit strategies.

For more information or questions regarding advertising in this section, please call Lynn Calcaterra at 216-771-5276 or email: lcalcaterra@crain.com

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CORRIDOR CONTINUED FROM PAGE 1

be successfully transplanted.

Property taking, called eminent domain, for road building on this scale hasn’t been undertaken in Cleveland in years. Unlike the rebuilding of the Inner Belt Bridge over the Cuyahoga River, which is using an existing right-of-way, the Ohio Department of Transportation (ODOT) expects to purchase more than 90 acres of land — all or parts of 379 parcels of land — to create what will become part of state Route 10.

The road would be a divided, 35mph boulevard linking Interstate 490 at East 55th Street to University Circle along East 105th Street. It would make it easier to reach the growing health care and employment center at University Circle from the west. City planners also see the road as an opportunity to rejuvenate an aging, struggling part of Cleveland by redeveloping land adjacent to the roadway into a new commercial or light industrial district.

Work on the roadway so far has been in the University Circle area.

But early last month, ODOT awarded a $35 million contract to Great Lakes Construction Co. for what’s called Phase 2, a major section of the roadway from, roughly, East 105th

Street near University Circle west to East 93rd Street. The work is scheduled to begin later this year and be completed in the fall of 2018. But the transportation agency is still buying land along Woodland Avenue west of Woodhill Road.

Property acquisition in the Phase 2 area is scheduled to be completed

by August.

ODOT hires appraisers and other professionals to negotiate with property owners. Asked to comment on its dealings with business owners whose land the agency is taking, an ODOT spokesperson emailed that the person who could talk about property acquisitions was out of the office until June 13.

While most of the land being acquired is residential and a chunk of that, nearly 12 acres, is vacant land or abandoned homes owned by the city of Cleveland’s land bank, ODOT has identified 13 businesses that will have to be relocated and 22 commercial buildings that will have to be demolished to make way for the roadway. The construction will also trim 26 acres off 150 parcels of land, so-called partial takes, with some of the taking disrupting the plans of operating businesses.

Bruder Building Materials’ operation at East 90th Street and Buckeye Road is directly in the road’s path, so the business is relocating to Maple

Contact: Lynn Calcaterra Phone: (216) 771-5276 E-mail: CLBClassified@crain.com

Heights in August. But owner Michael Bruder isn’t happy about how his family business that sells bricks, stone pavers and other landscaping materials is leaving a property it has done business from for 70 years and through three generations.

“It hasn’t been good for us,” he said. “The compensation is called ‘fair market value’ (for the land being taken), but to buy a four-plus-acre property with the size warehouse we have anywhere in Northeast Ohio costs considerably more than (the value) we have (on Woodland).”

Bruder also complained that the $25,000 cap the Ohio Revised Code puts on what is called “reestablishment expense reimbursement,” to compensate a business owner for the cost of making a new location ready for business, is inadequate.

“If you’re a larger business and you have a big property and you have engineering fees and have to buy signs and build a big fence, all of those things add up, so (the $25,000) doesn’t go very far,” he said. “The expense of the move is a challenge for us.”

Governments at all levels have the power to take private property for important public use, especially for road building. Ohio law strictly guides the process ODOT uses and requires property owners to be paid “just compensation,” which includes the fair market value of the property

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Thayer said he had bought the back parcel and the building on it, formerly home to a box-making business, several years ago with expansion in mind.

“It gave us some peace of mind and breathing room that now we could expand,” he said. “We had some decent storage area and a place to relocate our machine shop and enlarge our forge.”

Now, that plan is in the trash and Thayer and Wright have to find a place for a storage building to replace what the roadway is taking away.

But the road project was even harder on Todd Shaker and his business, The Final Cut, which processed produce for use by grocers and fastfood restaurants on Evins Avenue, directly in the roadway’s path.

When he first heard about the plan for a new roadway three years ago, Shaker told Crain’s Cleveland Business he wasn’t sure his business could survive. He said that he couldn’t use some refrigeration equipment in his current building in whatever new building he would move into because he couldn’t afford the downtime a move would entail. He would need to buy new.

He was right. Reached last week, Shaker was reluctant to discuss what happened to his business.

“We ended up closing it,” was all he would say.

and, if only a part of the property is taken, damages to compensate for the loss of the piece of land taken.

Those guidelines work comparatively well for taking residential property, though depressed property values along the Opportunity Corridor and the sentimental attachments long-time residents have to their homes have made the process a little bumpy.

But the financial impact of a move or even a partial taking of land on an ongoing business doesn’t easily fit into the guidelines. Take Forge Products Corp. and its operation at 9303 Woodland Avenue.

“They’re cutting off our leg at the knee,” is how general manager Andrew Wright describes how ODOT is treating Forge Products, though he admits that ODOT is just following what state law allows the agency to do.

The roadway will bisect a parcel north of Forge’s main operation owned by Forge’s president and CEO, Charles Thayer II. The property has a four-story building the forging, metal-machining and heattreating company uses for storage.

So the building will be demolished and Thayer and his business will end up with two parcels of land. One, the operating facility south of Route 10, and another remnant piece north of the roadway, no longer of value to the forging business.

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The List THIS YEAR

EXECUTIVE (AGE) TITLE COMPANY

TOTAL COMPENSATION 2015 2014

HIGHEST PAID FEMALE EXECUTIVES PUBLIC

Ranked by 2015 Compensation

% CHANGE SALARY

BONUS

STOCK AWARDS

OPTION AWARDS

NONEQUITY INCENTIVE PLAN

$0

$3,599,983

$399,997

$1,900,000

1

Beth E. Mooney (60) chairman, CEO KeyCorp

$6,994,704 $7,124,566

(1.8%)

2

Laura K. Thompson (51) executive vice president, CFO Goodyear Tire & Rubber Co.

$4,137,463 $3,114,681

32.8%

3

Revathi Advaithi (47) COO, Electrical Sector Eaton

$3,875,138 N/A

N/A

Leila L. Vespoli (56) exec. v.p., corporate strategy, regulatory affairs; chief legal officer/ FirstEnergy Corp.

$3,549,958 $5,680,795

(37.5%)

4 5

Meredith S. Weil (48) COO, Third Federal Savings and Loan TFS Financial Corp.

$1,782,737 $1,189,765

49.8%

6

Kelley Semmelroth (50) executive vice president, chief marketing officer/Cedar Fair LP

$1,350,580 $835,355

61.7%

7

Jenniffer D. Deckard (49) president, CEO Fairmount Santrol Holdings Inc.

$894,828 $1,415,348

(36.8%)

8

Sheila M. Rutt (47) vice president, chief human resources officer/Diebold Inc.

$880,331 $1,684,791

(47.7%)

9

Christa A. Vesy (44) executive vice president, chief accounting officer/DDR Corp.

$595,188 $665,349

(10.5%)

Laura Campbell (51) vice president, finance Athersys Inc.

$452,739 $515,837

(12.2%)

10

$1,038,462

CHANGE IN PENSION VALUE (1)

ALL OTHER COMPENSATION

$4,987

$51,275

COMPANY NET INCOME IN 2015 (MILLIONS)

COMPANY NET INCOME % CHANGE FROM 2014 1.8

$916.0

$551,667

$0

$314,120

$449,992

$2,114,933

$662,960

$43,791

-87.5 $307.0

$609,012

$0

$1,611,431

$417,635

$905,758

$269,803

$61,499

10.4 $1,979.0

$752,789

$0

$1,861,510

$0

$860,125

$61,876

$13,658

93.3 $578.0

$450,000

$0

$351,129

$429,974

$484,682

$6,546

$60,406

11.0 $73.8

$305,360

$0

$651,528

$0

$374,850

$0

$18,842

7.7 $112.2

$450,000

$0

$72,406

$192,720

$140,845

$0

$38,857

-154.1 ($92.1)

$348,801

$0

$249,641

$131,874

$91,875

$0

$58,140

-35.6 $73.7

$298,541

$0

$115,945

$38,644

$131,382

$0

$10,676

-161.5 ($72.2)

$251,750

$36,000

$57,119

$94,361

$0

$0

$13,509

25.6 ($16.4)

RESEARCHED BY DEBORAH W. HILLYER Numerical information provided by S&P Global Market Intelligence, www.spcapitaliq.com. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate.

(1) Change in Pension Value and Nonqualified Deferred Compensation

The List NAME THIS TITLE YEAR ORGANIZATION

ADDRESS, PHONE, WEBSITE

HIGHEST PAID FEMALE EXECUTIVESNONPROFIT Ranked by Total Compensation BONUS AND TOTAL BASE COMPENSATION COMPENSATION INCENTIVE OTHER

RETIREMENT AND OTHER DEFERRED COMPENSATION

NONTAXABLE BENEFITS ASSETS ($)

990 FILING DESCRIPTION YEAR

1

Cynthia H. Dunn CEO Judson Services

2181 Ambleside Drive Cleveland 44106: (216) 791-2004 www.judsonsmartliving.org

$341,541

$254,765

$75,000

$4,028

$7,748

$0

40,942,016

Senior services

2014

2

Claire M. Zangerle president, CEO Visiting Nurse Association of Ohio

2500 E. 22nd St. Cleveland 44115: (877) 698-6264 www.vnaohio.org

$281,306

$280,553

$0

$0

$0

$753

28,519,255

Health care

2014

3

Debra Rex president, CEO Beech Brook

3737 Lander Road Cleveland 44124: (216) 831-2255 www.beechbrook.org

$274,919

$249,755

$0

$2,749

$15,310

$7,105

41,261,713

Behavioral health

2013

4

Evalyn Gates executive director, CEO Cleveland Museum of Natural History

1 Wade Oval Drive Cleveland 44106: (216) 231-4600 www.cmnh.org

$272,832

$252,832

$20,000

$0

$0

$0

190,256,554

Museum

2013

5

Kathryn P. Jensen COO Ideastream

1375 Euclid Ave. Cleveland 44115: (216) 916-6100 www.ideastream.org

$268,533

$221,843

$22,387

$3,450

$11,195

$9,658

48,929,005

Multiple media public service organization

2013

6

Barbara W. Thomas CEO Kendal at Oberlin

600 Kendal Drive Oberlin 44074: (440) 775-0094 www.kao.kendal.org

$248,957

$234,574

$0

$0

$14,383

$0

92,634,570

Senior services

2014

Diane Beastrom president, CEO Koinonia Homes Inc.

6161 Oak Tree Blvd., Suite 400 Independence 44131: (216) 588-8777 www.koinoniahomes.org

$248,579

$220,779

$0

$987

$6,171

$20,642

12,810,239

Social services

2014

7 8

Anne Connell-Freund executive vice president, operations Oriana House Inc.

P.O. Box 1501 Akron 44309: (330) 535-8116 www.orianahouse.org

$247,713

$159,115

$0

$12,200

$76,144

$254

18,373,697

Corrections and chemical dependency

2014

9

Christine Marsick, M.D. hospice medical director Visiting Nurse Association of Ohio

2500 E. 22nd St. Cleveland 44115: (877) 698-6264 www.vnaohio.org

$239,182

$229,599

$0

$0

$0

$9,583

28,519,255

Health care

2014

Jan Bucholz CEO Stein Hospice Service Inc.

1200 Sycamore Lane Sandusky 44870: (419) 625-5269 www.steinhospice.org

$229,737

$223,266

$0

$0

$6,024

$447

9,015,729

Hospice care

2014

10

RESEARCHED BY DEBORAH W. HILLYER Universities, colleges, foundations and hospitals were excluded. Source: Form 990 SEC filings and guidestar.org. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com.

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