$2.00/SEPTEMBER 21 - 27, 2015
With hundreds of rowers calling it home, The Foundry is an encouraging addition to the Flats — P. 3 Stark Enterprises and American Greetings each plan to add to the expansion of Crocker Park — P. 4
Daily fantasy sites bring real business Success of FanDuel, DraftKings can be beneficial for teams such as Browns, Cavs and Indians By KEVIN KLEPS firstname.lastname@example.org
When LeBron James soars for a highlight-reel dunk at Quicken Loans Arena this season, viewers might notice a FanDuel sign on the padding that lines the basket support. They’ll also see signage for the New York-based daily fantasy sports operator on the court apron, the courtside LED boards and even at the players’ feet, via a logo placed on the kick plates under the team benches. A select few fans at FirstEnergy Stadium during the Cleveland Browns’ home opener on Sept. 20 watched the game, and any other NFL contest of their choosing, on huge TVs in the
A huge DraftKings advertisement adorns the Stark Enterprises headquarters on West 3rd Street and St. Clair Ave. in Cleveland.
See FANTASY SITES, page 35
Businesses will become special-event headquarters By JAY MILLER email@example.com
If you happen to be wandering downtown Cleveland during convention week next July, you could
MORE COVERAGE INSIDE: RNC poised to disrupt calendars, event planners say. Page 28
have breakfast or lunch with an assortment of political reporters, campaign operatives — or maybe
a convention-watching event at the Great Lakes Science Center. Corporations, trade associations, labor unions and other special interest groups are drawn to the concentration of politicians, party leaders and media heavyweights who attend these quadrennial events. The goals range from advocating specific issues to building brand awareness, and the groups use public and private events to make an impression. Destination Cleveland, the convention and visitors bureau, is estimating these groups could end up
holding about 1,200 public or private events during the convention week, July 18-21, 2016. When the Democrats held their 2012 convention in Charlotte, N.C., attendees were offered the opportunity to rub shoulders with influencers at sponsored programs with titles like “Building the Future of Energy Efficiency,” “Moving America Forward: Health Care Voices from the Front Lines,” and “Transportation Moving America Forward.” Even Facebook was there, showing off new software at “Apps and Drinks” a cocktail event at a lo-
cal art gallery. Event planners and space brokers are visiting venues, though few contracts are being signed. That’s because the Cleveland 2016 Host Committee and the Republican Committee on Arrangements have commitments from many venues to let the organizing groups handle matchmaking, and they have yet to gear up. But National Journal LIVE, the media company’s event planning arm, is an exception. Last week, it signed an agreement with See HEADQUARTERS, page 38
ALSO INSIDE: NEWSPAPER
74470 83781 0
even a politician or two — thanks to National Journal. The Washington, D.C.-based political media organization is taking over the Blue Point Grille on West St. Clair Avenue for daily, open-tothe-public breakfasts and luncheons and a few, more private, evening events. Maybe your brother-in-law can get you into a corporate-sponsored soiree at Red the Steakhouse on Prospect Avenue, a stone’s throw from the Quicken Loans Arena convention site. Or maybe you’ll want to head for
MEETINGS AND EVENTS The St. Clair-Superior neighborhood has become home for culture, entertainment ■ Pages 13-33 PLUS: CATERING ■ CLEVELAND ST.-CAVS PARTNERSHIP ■ & MORE
Entire contents © 2015 by Crain Communications Inc. Vol. 36, No. 38
Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters.
Innovation, Security, Disruption Key Themes at CIO Symposium Innovation, security and disruption took center stage during the opening session of the OHTec CIO Symposium last week, which brought together about 200 top tech leaders from around Northeast Ohio. The OHTec CIO Symposium was a full-day conference with four focused, intense breakout sessions and four, distinct, eclectic, strategic Tech Talks by regional and national IT thought leaders. Innovation Innovation is a top-of-mind issue at the Cleveland Museum of Art, said Jane Alexander, the museum’s CIO. She told the crowd about the museum’s installation of technology that allows a visitor to draw an image on one of the museum’s walls, and then that image can be matched to an item in the collection. “It’s magical,” she said during the event, which was hosted by OHTec, COSE and the Greater Cleveland Partnership. Information about the museum’s collection can also be beamed directly to a user’s device. Why did the museum invest in such technology? Alexander said it’s a crucial part of creating an atmosphere at the museum and also a way to engage with guests at a deeper level. “We don’t want gadgets,” she said. “We want to create things that heighten the visitors’ experience.” The technology wall is continually updated so that it always has the freshest information for guests. “We’re in ongoing beta,” she said.
By The Numbers OHTec State of the Industry Report
Baldwin Wallace’s Greg Flanik (second from right) answers a question posed by John Campanelli (far left) of Crain’s Cleveland Business during the OHTec CIO Symposium. Looking on, from left, are the Cleveland Museum of Art’s Jane Alexander and NASA Glenn’s Sean Gallagher.
ups such as Packback that allow students to rent textbooks by the day. 0UHULVY[[VWYV[LJ[[OLPYI\ZPULZZTVKLS Flanik said universities launched massively open online courses, which is a model that aims to deliver courses to anyone interested in taking them on the Web. While Flanik said the so-called MOOCs haven’t been as successful as universities might have wanted, technology borne out of the initiative could help universities take their space back from the disruptors. For example, he alluded to adaptive learning techniques that delivers more educational content as students grasp an idea or concept as a way university business models could potentially evolve.
Security Data security is an ongoing concern for many businesses. Sean Gallagher, CIO at NASA Glenn Research Center, said one way to take stock of a company’s tech defenses and also potentially foster innovation is through the advent of “hack-a-thons.” Such events can help businesses design custom solutions to any number of challenges they might be facing, he said. “We engage citizens across the globe in ZVTLVMV\YPUUV]H[PVULVY[Z¹OLZHPK Disruption Greg Flanik, CIO at Baldwin Wallace University, said disruption has taken root in the education industry. He pointed to start-
NATIONAL PREPAREDNESS MONTH TIPS For National Safety Preparedness Month in September, COSE will provide a preparedness tip of the week each week on the Small Business Matters page of Crain’s Cleveland Business. Today’s tip has to do with what to do after disaster strikes.
The number of Northeast Ohio tech companies that have more than 10 employees (national average is 18%).
Northeast Ohio tech companies with more than $5m in annual revenue, increased from 11% in 2010.
SOURCE: 2015 NEO TECH INDUSTRY RESEARCH REPORT
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SEPTEMBER 21 - 27, 2015
CRAIN’S CLEVELAND BUSINESS
Rowing downstream The Foundry is off and running, and a great sign for riverfront
By STAN BULLARD firstname.lastname@example.org
Spotting crews rowing on the Cuyahoga River is a delightful sign of the resurgence of the waterway and, increasingly, the Flats in downtown Cleveland. The latest installment in how the sport is starting to help revitalize the long-blighted riverfront district is at The Foundry, a startup training center for high school and college students. It’s up and going six months after 13 buildings were purchased for it, most of them surrounding 1831 Columbus Road. About $1 million of the $9 million investment in the project already is in place. Since mid-August, more than 200 students from a summer camp and three high school teams — St. Joseph Academy of Cleveland, St. Edward High School of Lakewood and the Cleveland Youth Rowing Association, a walk-on crew for students whose schools lack a team — have been plying the river from the first building The Foundry has gotten going. A 1960s-vintage former industrial building has become the boathouse after removal of a fiveton overhead crane, its battered floor replaced with smooth concrete. Flakey paint has been removed and repainted with a bright white.
Inside, the racks of long boats used by the teams — with oars still stored on the floor until racks for them arrive — create a church-like atmosphere when quiet during the workday. It’s a far different setting from when student rowers descend on it for training as early as 5:30 a.m. before school starts, as well as after their school day ends. When practice concludes, Columbus Road is lined with cars of parents picking up their kids. Some parents, like Jim Ridge, who popularizes river doings through ShareTheRiver, patronize nearby restaurants and bars. The lively crowd is far different than the somnolent Columbus Road that downtown commuters traverse as an alternate route at rush hours. Getting this far, this fast matches the mantra of Aaron Marcovy, an alumnus of elite high school and international college rowing programs who serves as on-call executive director of The Foundry. He also works for McPC, the tech company whose owner, Michael Trebilcock, and his wife are major funders of the enterprise. “I don’t have patience,” McCovey said. “The students shouldn’t have to wait,” since practice time is limited. The need for speed is reflected in many ways at the complex on the Cuyahoga, not unlike the work and
dedication that crew provides for students that attracted Trebilcock to the sport after his now-grown children fell in love with it. Most palpable is a 15-foot-wide floating dock behind the complex that is 16 feet shy of being the length of two football fields. It’s the most noticeable part of The Foundry so far. The dock can accommodate as many as eight boats at once. It also has room left over for the four launches that coaches use to school students at The Foundry, and for other equipment. The boathouse also is a temporary home to 36 high-tech rowing machines that Marcovy hopes The Foundry can move to an adjoining structure by the time winter begins. The next big addition will be rowing tanks in yet another adjoining structure west of the boathouse that abuts the riverfront. Both the rowing machines and the tanks that allow crews to row together are important to The Foundry’s goal of providing year-round training. Robert Zdankiewicz, director of operations and The Foundry’s first full-time employee, said teams that Northeast Ohio crews compete with often can train in the water more than Clevelanders can. “Even in Cincinnati,” Zdankiewicz said, “they’re in the Ohio River most of the year.”
REBECCA R. MARKOVITZ PHOTOS
A former industrial building has become the home of The Foundry, located on Columbus Road in the Flats.
Have a little faith Although The Foundry has become an operating facility quickly, much remains to be done. The main building — the former home of Foundry Equipment Co., which built the brick structure in 1910 at 1841 Columbus — needs to be renovated. The Foundry lost a bid for an Ohio State Historic Preservation Tax Credit in December, but Marcovy said it has not yet decided whether to proceed without it or try again. Plans for that building include turning a former driveway into an entrance for rowers. All told, the complex will encompass 100,000 square feet of rowingdedicated space. Plans also call for using an enclosed, open-air courtyard and a one-time carriage house as a rental space for nonprofit fundraising and corporate events. The Foundry already held a minicamp last summer for middle-school students to get their feet wet in boating. Those efforts, along with rent
from three buildings on the north side of Columbus Road that The Foundry got as it acquired the properties, will help meet an operating budget of $250,000 annually. Support from Michael and Gina Trebilcock and McPC family charities has been substantial in getting the program going. “I’m also talking to a few other potential funders,” Marcovy said, “but I’m doing so on condition of anonymity so far.” The plan is for The Foundry to come together completely in three years, Marcovy said. It’s likely to accommodate as many as 10 teams. Although The Foundry has substantial philanthropic support, it has challenges. “People have to believe in what we are trying to do,” Marcovy said. “Parents have to have faith we can shuffle a boat with their child on and off the river while a freighter passes. People have to believe we can build a year-round rowing training center in Cleveland.”
CRAINâ€™S CLEVELAND BUSINESS
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After construction of the headquarters and creative studios of American Greetings is finished next year in Westlake, Stark Enterprises may add a big multitenant office-retail building to the mix at Crocker Park.
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Volume 36, Number 38 Crainâ€™s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright ÂŠ 2015 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crainâ€™s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 212-210-0750 Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crainâ€™s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to firstname.lastname@example.org, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.
Lots of office space is going into Westlake with construction of the American Greetings Creative Studios, but more is in on the way, both long term and short term. Thatâ€™s the word from real estate developer Bob Stark, whose Stark Enterprises is co-developing Crocker Park with the Carney family of Westlake. Looking past the current $400 million construction project during a Sept. 9 tour of the property, Stark said he wants to add a 100,000-square-foot rental building on the empty parcel at the northwest corner of Crocker Road and Market Street. The site of the building Stark envisions served as temporary parking while garages for the current phase were built. For several years, it was the location of a farmers market on Saturdays. Stark said he wants to pursue the project after 2016, noting â€œmoney doesnâ€™t grow on trees,â€? and he has not determined a potential height for it. However, accommodating such a building on a two-acre parcel would require several levels of space. In Crocker Parkâ€™s ongoing third phase, buildings that are five stories and taller are going in, compared with three stories in the projectâ€™s second phase, dating from 2005. Meantime, more office space is going into the greeting card companyâ€™s headquarters. The Cleveland-Cuyahoga County Port Authority on Sept. 11 agreed to amend the bond financing package for American Greetings to fund $11 million in additional office space and construction of a more than 200-car-surface parking lot on the southern edge of Crocker Park, ad-
joining the Lakewood Country Club. Patrice Sadd, American Greetings director of corporate communications, said in an email that as planning for the headquarters proceeded, the company decided to add 60,000 square feet of additional office space inside its Tech West building at Crocker Park to free up space in the 600,000-square-foot headquarters building for other uses. The Tech West building will have about 90,000 square feet of office space above 30,000 square feet of retail space, she said in the email. Sadd did not respond to questions about potential changes in the number of jobs at the American Greetings property in Westlake, which has been put at about 2,000. Westlake Mayor Dennis Clough said in an interview that he had not heard previously about the idea for another multitenant rental building at Crocker Park. He said he is encouraged that Starkâ€™s new plan, as well as the recent increase in office space at the American Greetings, will boost the number of jobs in the suburb. Constructing a 100,000-squarefoot rental office building at Crocker Park will increase the amount of multitenant office space in the
complex by about 70%, according to CoStar, an online data service. More than 130,000 square feet of rental office space went into Crocker Parkâ€™s original phase above storefronts in the Argus, Grantland and Gordon buildings. â€œWeâ€™ve created the Wall Street of the West Side,â€? Stark said of the financial firms, from Wells Fargo to an office of KeyBankâ€™s private banking unit that occupy space in the 2005 phase of Crocker Park. Alex Jelepis, executive managing director of Newmark Grubb Knight Frankâ€™s Cleveland office, said Crocker Park could capitalize on the aging of many office buildings in the suburb that date from 20 to 25 years ago. â€œItâ€™s the right amount of space at the right location,â€? Jelepis said, if the floor design is appropriate for potential tenants. â€œIt would work, especially there, because of the dynamic at Crocker Park,â€? he said, because of its mixeduse residential and retail components. That also would help a new building overcome competition from existing properties, as Newmark Grubbâ€™s most recent survey of the west suburbs shows an 18% vacancy rate.
SEPTEMBER 21 - 27, 2015
Chesler’s fund combines lending with developer’s love of history By STAN BULLARD email@example.com
Michael Chesler, the real estate developer and investor whose devotion to old buildings has led to historic restoration projects from old mansions on Prospect Avenue to the geodesic dome at the American Society for Metals Building in Russell, has found an unexpected way to go national. Operating the MainStreet America fund, launched in late 2014, puts Chesler in the role of lender and means he’s looking at real estate developments that take him from the country’s coasts to Springfield, Mo., and New Orleans. The fund is designed to provide funding for adaptive historic restoration projects for properties over 50 years of age that are eligible for federal historic tax credits. Chesler is looking at projects that may cost as much as $15 million to develop in terms of historic project costs.
operators, Chesler swears he will not seek other investors. “It’s an honor for us to work with this powerful, well-to-do organization,” he said of his equity partner. The public company puts up the money, Chesler finds the deals, and he and Budish underwrite them. Limiting his role to prospective banker has challenges for Chesler, who, like most developers, has strong opinions about how things should be done. “I’ve almost bit my tongue in half multiple times,” Chesler said, be-
cause his sense of the right thing to do design-wise or planning-wise in a project was not in the applicant’s plan. He also has been surprised by developers who don’t want to follow the fund’s rules, such as providing evaluations of environmental concerns. Chesler said the flying is not a problem, but the experience has shown him how many valuable potential historic projects are out there seeking funding. It also hasn’t kept Chesler Group from pursuing its own deals.
Who are the most connected people in Northeast Ohio and how do they rank? Crain’s Cleveland Business this year is celebrating 35 years of making connections by attempting to answer that question. On Oct. 26, we will publish a data-driven section, created in partnership with the New York-based technology company Relationship Science. The section will use information collected from Crain’s weekly lists to determine who has the most access based on their links to individuals, institutions and organizations. In a nutshell, this list lets the facts speak for themselves to create a picture of who knows whom — and how. And, trust us, there are some surprises. But you don’t have to wait until Oct. 26 to find out who made the list. Over the next several weeks, we will be releasing the list alphabetically, 20 names at a time. Here is the third installment:
■ Michael J. Horvitz ■ Stewart A. Kohl ■ Marvin Krislov ■ Norma Lerner ■ James M. Malz ■ Christopher L. Mapes ■ Paul G. Matsen ■ Thomas F. McKee ■ Loretta J. Mester ■ Henry L. Meyer III ■ Samuel H. Miller ■ Donald T. Misheff ■ A. Malachi Mixon ■ Beth E. Mooney ■ Mario M. Morino ■ William C. Mulligan ■ Bruce D. Murphy ■ Frederick R. Nance ■ Stephen D. Newlin ■ Patrick M. Pastore To see more names, go to www.crainscleveland.com/mostconnected, and stay tuned for the rankings on Oct. 26.
Give employees the duck. Anything else is just chicken.
“I’ve almost bit my tongue in half multiple times.” – Michael Chesler real estate developer, on the occasions in which his plans aren’t in line with a MainStreet America fund applicant’s vision While an eligible project may produce a tax credit of as much as $1.5 million — too small for many banks to consider — Chesler said he goes well below that for something that stirs his property passion. That explains how MainStreet America got involved in the first project it has funded and seen concluded: a two-room school house dating from 1898 — at 69 School St., no less — in rural Unity, Maine. The developer is the Mainland Farm Trust, which is devoted to supporting farmers and advancing farming as it preserves farmland. In a $1.2 million project, the school house was repurposed to serve as the Unity Food Hub, which allows farmers from the surrounding area to bring their wares to a central location for resale to restaurants. It also makes possible other food purchases up and down the eastern seaboard. “When I heard about what they were going to do, I had to see it,” Chesler said. “I’m all about the buildings and less about the program.” Few lenders would travel to the site to size up such a small deal. Chesler hired a private plane to get to Unity in a timely fashion. The fund also has closed a $3 million investment into The Hive, a 30suite apartment building with retail on the first floor in a resurgent neighborhood of Rochester, N.Y. The developer for that $10 million renovation project is Rochesterbased Dan Morgenstern. Chesler’s fund also is looking at two hotel deals — one in Durham, N.C., the other in Syracuse, N.Y. Chesler and Daniel Budish, a vice president of Chesler Group who formerly worked for the city of Cleveland’s economic development department, launched the fund as a joint venture with a Clevelandbased, publicly traded company he refuses to identify. Unlike typical investment fund
CRAIN’S CLEVELAND BUSINESS
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When conducting research, Dr. Brian Ilfeld tries his best to be dispassionate and logical. SPR Therapeutics has made that task difficult. The Highland Hills-based company’s first product could have a huge impact on the world of pain management, according to Ilfeld, a professor of anesthesiology at the University of California, San Diego. In a few months, he plans to start testing the Smartpatch on patients who have recently undergone several different kinds of surgeries at the UC San Diego Health System. The device treats pain by delivering electricity through a thin, flexible wire inserted into the skin. If it works, he and other anesthesiologists may have an alternative to the local anesthetic drugs they’ve been giving patients for generations. “It’s a little bit hard not to get excited,” he said. And data suggest that the device might work. For instance, SPR Therapeutics conducted multiple clinical trials on patients suffering from post-stroke shoulder pain. On average, the 75 patients who were treated with the Smartpatch reported a 66% reduction in pain. The 37 patients who received conventional therapy — an arm sling and physical therapy — reported a 15% drop. SPR Therapeutics now has to convince federal regulators to give it the go-ahead to start selling the Smartpatch in the United States. It already has approval to sell the device in the European Union. The company is in the process of putting together the 510(k) submission it will send to the U.S. Food and Drug Administration, which in-
SPR Therapeutics wants to be known as the poster child for NIH grants. Literally. The federal agency sent the neurostimulation device maker an email saying it was looking for companies to feature on inspirational posters that it would hang up in the NIH offices. SPR might be a good candidate: The Highland Hills-based company has raised $13.8 million in grants and other non-dilutive funds since it spun off from NDI Medical in 2009. Now, SPR is in the process of designing the poster. “Hopefully we’ll be literally a poster child on the walls of NIH,” SPR CEO Maria Bennett said with — Chuck Soder a laugh.
cludes data from the shoulder studies and other trials. The data aren’t the only reason that CEO Maria Bennett has confidence in the Smartpatch. She recalled a few of the comments SPR Therapeutics has received from patients. “ ‘I slept a full night. I was able to hold my grandchildren on my lap. I was able to go to work today,’ ” she said. Neurostimulation already is used to treat pain, so what makes the Smartpatch special? For one, it’s competing with devices that are implanted in the body, Bennett said. With the Smartpatch, the only piece that enters the body is a steel wire that’s barely thicker than a hair. The palm-sized unit that delivers the electricity is designed to be worn under the patient’s clothes. Inserting a wire into the skin is a
fairly simple procedure, according to Ilfeld and testimonials that SPR collected from other doctors.
‘Astronomical’ potential First, SPR Therapeutics is focusing on treating chronic pain caused by strokes, amputations and lower back injuries. The company’s goal is to fill the gap between pharmaceuticals and surgery — and reduce the use of addictive narcotics, Bennett said. However, the company also believes that the Smartpatch could treat short-term surgical pain. For instance, in August, the company won a $1.6 million federal grant that will help it fund a trial that will test whether the technology can help patients recovering from knee replacement surgery. That’s a big deal, according to Ilfeld. Today, neurostimulation isn’t commonly used to treat short-term, acute pain. Companies in the industry have been more interested in treating chronic pain, because it often warrants more expensive devices and procedures. But SPR Therapeutics could break into the acute pain market, if it can keep costs low, Ilfeld said. The Smartpatch does have a few advantages over local anesthetic, he noted. For one, it appears to cause fewer infections, probably because the skin heals better around the steel lead — a group of seven wires braided together — than it does around the catheters he uses today. Plus, electricity doesn’t “leak” the way liquid drugs do, and it’s easier for a patient to control the Smartpatch from home, Ilfeld said. “The potential for this in the acute pain market is astronomical,” he said.
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SEPTEMBER 21 - 27, 2015
Northwest Savings sets sights on Ohio boom By JEREMY NOBILE firstname.lastname@example.org
Northwest Savings Bank was knocking on Ohio’s front door for a while, and Lorain National Bank welcomed it inside. Now, the two companies are getting their house in order before looking to expand down the block. Last December, Northwest’s parent company, Northwest Bancshares Inc., revealed plans to acquire LNB Bancorp Inc. in a combination cash and stock deal valued at $18.64 per share, or about $183.3 million based on trading levels when the deal was announced. The merger was completed in mid-August, which also marked the debut of LNB’s Kevin Nelson as Ohio region president for Pennsylvania-based Northwest — a position Daniel Klimas, who served LNB as president for the past decade, originally was expected to fill before a decision to part ways was announced in July. With any bank merger, there can be some common growing pains along the way. LNB’s staff was trimmed by about 35% with 99 positions cut, largely in tech and backoffice support positions. And legacy LNB retail customers complained of issues with accounts and customer service as operations were converted to Northwest’s systems. “Things are settling down and customers are getting through,” said Nelson, who previously held the title of senior vice president, director of retail and mortgage lending at LNB. “There in the beginning, it was a little rough because we had (so many) people calling in, but now we’re starting to see things move in a much smoother pattern.
“We’re opening accounts, doing loans and starting to play offense,” he said. LNB’s $1.3 billion in assets lifts Northwest to a $9 billion-asset company with 184 branch locations and 297 ATMs in four states. (Northwest already had four branches in Ohio’s most Northeastern corner before the merger). Additional scale means expanded services for legacy LNB customers. Ohio branches under the Northwest moniker now can offer bigger loans than they could before with a larger parent company behind it. LNB already had a robust commercial lending portfolio and an active Small Business Administration loan program. Northwest, historically, has worked more heavily in mortgage lending, so those business lines complement each other well, diversifying the overall mix. “Northwest had trouble growing their balance sheet. With the Cleveland market being similar to Pittsburgh’s, it clearly positions them to deliver stronger balance sheet growth,” said analyst Fred Cummings, president at Elizabeth Park Capital, a Pepper Pike hedge fund that invests in bank stocks. “You need to be in these larger metro markets to pursue more lending opportunities, particularly on the commercial side,” he said. That expansion in the lending arena is one of many factors that made LNB an attractive acquisition, said Northwest CEO Bill Wagner. There were many other considerations, including similar cultures, as both community banks serve similar demographics and embrace the community bank model. But Northwest had capital that needed to be deployed, and LNB of-
A Northwest sign is now displayed on the front of the former Lorain National Bank headquarters in Lorain. fered the gateway the former company needed to truly break into this market with an impact. The bank already is well-established in Pennsylvania, and it has a modest presence in New York and Maryland. Meanwhile, LNB, which also operated subsidiary Morgan Bank, offered new footholds in Portage, Summit and Lorain counties, where LNB controlled more than 21% of the market (second only to FirstMerit Bank), according to the Federal Deposit Insurance Corp. LNB ranked in the top three for market share in nine of 12 markets in which it operated. “We can’t go farther north because we run into Canada, and we are probably as far south and as far east as we want to go,” Wagner said. “So going west was the most natural extension.”
Is the Cleveland Renaissance for Real?
Wagner called the acquisition “big and meaningful, but small enough that it’s digestible for us.” He pointed out that the average LNB branch size was at $65 million, while that’s about $35 million for Northwest, which has a much larger footprint.
Fixing sights on Ohio As a company overall, not much will change for Northwest. It’s focusing on organic growth and attracting deposits to continue expanding its loan portfolio. Northwest is in good shape following the deal. No additional capital was needed to complete the transaction, and the bank took on just about $15 million in acquisition-related expenses. Total cost savings are estimated to be about
28% in noninterest expense. Despite a 7% dilution of tangible book value, which Northwest says it expects to earn back in just about five years, Wagner said the bank intends to maintain its high dividend payout. That payout is about 80%, while most banks are in the 30% range, Cummings said. “We have a history of increasing the dividend every fourth quarter,” Wagner said. “The plans are to continue to do that. We certainly have the earnings to support the dividend payment levels we’re doing now, and we still have an excess capital position.” Longer term, expect Northwest to set its sights on other acquisitions across Northeast Ohio. “There’s been some speculation this bank could have interest in that Youngstown region,” Cummings said. “I wouldn’t be surprised if over time they decided to do something there. We expect them to do more acquisitions over time.” Cummings said there’s been some “speculation” with investors regarding what’s going to happen long term with banks like United Community Financial in Youngstown and The Cortland Savings and Banking Co. “If one of those companies were for sale, we think Northwest would be a natural bidder,” he said. For now, Wagner stresses Northwest is focusing on the transition with LNB. However, they’re “always looking for opportunities to grow. “We have been busy with the integration and haven’t focused on that next step just yet,” Wagner said. “(But) if there are branches someone is looking to sell, or a smaller market looking to merge, we welcome those types of opportunities.”
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Drop in bucket Get ready, property owners, because your sewer bill is about to go up. Last week, the Ohio Supreme Court, in a 5-2 decision, ruled the Northeast Ohio Regional Sewer District has the authority to manage stormwater runoff. That means the district can charge businesses and homeowners a fee based on the size of their properties and the amount of impervious surfaces — think of driveways, rooftops and parking lots — that prevent stormwater from soaking into the ground. The district, which serves more than 60 communities in Cuyahoga County and in northern Summit County, has been trying to fully implement its stormwater management system since 2010. But its plans were halted in 2013 when a group of suburbs — Beachwood, Bedford Heights, Brecksville, Glenwillow, Independence, Lyndhurst, Oakwood and Strongsville — challenged the district’s authority under state law to collect the fee. The district had collected $20 million in fees before the program was suspended two years ago. Now that the Ohio Supreme Court has ruled, the district can begin to use those funds, which had been placed in escrow, and collect more to resume construction projects and maintenance work that includes shoring up eroding riverbanks and cleaning and repairing storm drains. And it’s about time. We get it. No ratepayer likes to pay more than they already do. Especially after big sewer bill hikes to deal with the raw sewage that flows directly into Lake Erie during heavy rains. But this fee is as equitable as it can be. It is based on how much property owners contribute to the stormwater runoff problem based on the amount of impervious surfaces their property contains. The sewer district estimates that the average residential user will pay a little more than five bucks a month for the program. Businesses, depending on their size and the amount of rooftop and pavement they have, are likely to pay more. The fees will generate about $35 million to $40 million of revenue annually. Of the amount collected, 25% will go back to communities in the district for their local stormwater management projects. It’s entirely appropriate that a regional entity is collecting the money and devising the strategy; stormwater runoff is a regional problem. Every property owner will pay their fair share, including non-taxed agencies such as governments and nonprofits. The threat from storm runoff is real. The rainwater and snowmelt — which picks up oil, metals, bacteria and other pollutants that are then carried into nearby rivers, lakes and streams — can wreak costly havoc. And water rushing into sewers from roofs and parking lots contributes to the sewage dumping problem in our streams, rivers and lakes. Paying more hurts. Doing nothing to control stormwater could hurt even worse.
FROM THE PUBLISHER
Embracing science, not food labeling With The Donald grabbing so much new strains of plants, trees and animals attention over the summer, you might to boost desirable traits (yields, flavor, have missed the news of the U.S. House appearance, hardiness, etc.) The apple in passing something called the “Safe and your lunch bag is large, crisp, flavorful Accurate Food Labeling Act of 2015.” and worm-free because of it. Among other things, the bill would But over the past couple of decades, block states from passing laws that scientists have begun using “artificial sewould require the labeling of food that lection” to circumvent the crapshoot of contains genetically modified natural DNA mutations by diorganisms, or GMOs. It passed rectly altering the genes of the House 275-150 with 45 Deplants and trees to get these mocrats — including Marcia and other desired traits (resisFudge — joining 230 Republitance to certain herbicides, for cans to vote “aye.” example). That’s genetic modThe bill is a blatant elbow to ification. the ribs of federalism, stripIt’s a process, not a characping power away from state teristic. And if done right, it’s no legislatures and handing it to more unsafe than “natural” the federal government. food. The World Health OrgaThe bill is being pushed by JOHN nization agrees. As does the lobbyists representing the CAMPANELLI American Medical Association, food industry, grocery stores, and the National Academy of biotech, agri-business and Sciences. Eight out of nine sciother special interests. The bill will probentists say GMOs are safe. More than 90% ably reduce the amount of information of the corn, soybeans and cotton grown consumers will get. in the United States already is geneticalToo bad. The bill needs to pass. ly modified. And by some estimates, Forget for a moment everything three-quarters of the food on our shelves you’ve heard about GMOs, the already contains some sort of GMO. The “Frankenfood” label, the fear peddling. technology offers great promise to help For thousands of years, farmers have ease — if not end — world hunger. been using natural selection to breed The problem is that the majority of the
American public — 57%, according to a survey by Pew — believes GMOs are unsafe. They’ve gotten their baseless fears from a lazy media, misguided environmentalists, ill-informed celebrities and our troubling culture of science denial that has significant portions of the public rejecting vaccines, climate change, even human evolution. Companies are taking advantage of the ignorance and reinforcing the fears. Chipotle trumpeted to the world earlier this year that it’s going GMO-free. Whole Foods and Trader Joe’s were already there. The implication is that non-GMO foods are healthier. They’re not, but they sure are more profitable. This bill, while flawed, prevents states from enacting GMO labeling laws that do nothing but perpetuate the fear and ignorance. A food with a “GMO-free” label says nothing about what’s inside the food. Let’s hope a majority of senators and the president can ignore the hysteria, investigate the science and embrace the promise. And looking wider, let’s hope we can somehow reverse our culture’s denial of science, because on so many issues, including genetically engineered food, we’ve been out to lunch.
TALK ON THE WEB Re: Indians’ continued attendance woes You can build the Taj Mahal, but it won’t matter if the product on the field doesn’t win. People always forget that Cleveland has never been a great baseball town. Even before Jacobs Field, nobody showed up, and the reason people showed up for the Tribe in 1994 was the Browns had left, the Cavs were terrible, and, more importantly, the Indians were really good. I’m glad they are keeping our park up to date. I have been a fan since I was child, but unless you’re going to add the bats we have needed for the past 10 years, then it will always be like this. Winning cures all! — Jonathan Oswick
The excitement of rookie shortstop Francisco Lindor and the maturity of the pitching staff will make this team a more legitimate draw than they were with the over-the-hill free-agent washouts. They’re closer to playoff contention than we think. But ballpark renovations don’t draw fans. Winning does. Remember when they had to ADD auxiliary center-field bleachers in the mid-1990s to accommodate the demand? I’d take back old, dirty, bathroomleaky Municipal Stadium if it meant the Browns would be good again. — Donald Templeman
Re: Future of OneCommunity OneCommunity raised money and took fiber routes from other companies under the structure of a nonprofit. They
are now transferring all of those notprofit investments to gain profit. Something is definitely wrong. There may be more fiber built because of OneCommunity, but now a for-profit is bailing them out and profiting off taxpayer money. — Jillian Crandle
Re: 78th Street Studios Owner Dan Bush has developed a gem in the wonderful Detroit Shoreway neighborhood! If you’re looking for a fun activity for a Friday night out, do yourself a favor and visit 78th Street Studios the third Friday of the month for an evening of music, food and the opportunity to see both unique artwork and a unique building! — Dan McCormack
SEPTEMBER 21 - 27, 2015
CRAIN’S CLEVELAND BUSINESS
CRAIN’S SUMMER IN THE CITY PHOTO CONTEST GRAND PRIZE WINNERS
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TALK ON THE WEB (CONTINUED) Re: 3% raises for 2016 If you’re making $40,000 per year, which comes out to $1,538 every two weeks before taxes, with a 3% raise you will go to $41,200 per year and $1,584 every two weeks before taxes. That’s basically an extra $25 per week or $50 per paycheck. So is this something we’re celebrating? I started with my current company in 2012 and have seen a growth in salary of 10% over three years. The CEO of my company has seen a growth of 22% in his salary in that same period, and that’s just his salary, not including the millions in bonuses. Anyone happy with a 3% bonus each year while CEOs are being awarded with nearly three times that amount in raises deserves to be stuck as a cog in the machine. I’m about nine months away from starting my own business, and it couldn’t come at a better time. Why continue to work for someone else putting money in some guy or woman’s pocket who couldn’t care less about your well-being? — A. Black
Re: Cleveland’s labor force I have to question whether Cleveland’s status as a top-10 city for people being employable with less than a four-year degree is going to help Cleveland’s changing
workforce. We are in the process of transitioning into a city that is full of good jobs but has no one to fill them. … If the median income for these labor force jobs is $35,000, it will be almost impossible to improve our economy because that amount of income will not go far if a family is also being supported. This is why Cleveland falls behind the national average of recession recovery, and why Cuyahoga County has one of the largest populations of people on entitlement programs in the country. While I know possessing a four year degree does not always equal higher incomes, continuing to push for higher standards in education for both colleges and vocational schools is highly important. — Wendy Fitos
Re: African-American civic leaders back marijuana legalization Leaders representing poorer segments of society … should be espousing good direction, positive messages and leadership by example to inspire those segments to reach higher goals. The comments made by former Cleveland City Council president George Forbes and current councilman Jeffrey Johnson inspire their constituents to nothing more than a leadership-approved slide into
further decay and disintegration. Where or what is the upside in smoking pot that helps the people they represent? If legalization occurs, then let it occur on its own accord with the voters, but don’t provide negative message leadership espousing smoking, drinking, snorting and more. How about providing leadership that inspires positive outcomes? — Jim Daniloff George Forbes is an insightful leader. Thank you, Mr. Forbes. Over 52% of drug-related arrests are for marijuana. We are wasting critical resources on a crime in which the victim and the criminal are mostly the same person. The U.S. has about 4.5% of the world population and 25% of the world’s prisoners. … We need to put priorities in order and eliminate the role of police, prosecutors, prisons, probation and all the rest from possession of marijuana. Handle issues with penalties for abuse, not for possession. Eliminate taxpayers paying for police, prosecutors, courts, probation and the rest costing thousands of dollars a day and the disruption of families. We have far better uses for that money and for our own energies. — Joseph Carney
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CRAIN’S CLEVELAND BUSINESS
SEPTEMBER 21 - 27, 2015
GOING PLACES JOB CHANGES ARCHITECTURE DS ARCHITECTURE: David Potts and Eric Pros to project architects; Tim Coerver and Sarah Mosko to project designers.
BLUE POINT CAPITAL PARTNERS: Colleen Greenrod to chief administrative officer; Jonathan Pressnell to principal; Sonali Aggarwal to associate.
Philip Williams to district team lead. CENTER FOR HEALTH AFFAIRS AND CHAMPS HEALTHCARE: Laura Gronowski to chief of staff.
FINKLER & CO. CPAS: Stacey Hrabak to marketing coordinator. PWC US: Eric Kahrl and Bradley Thompson to partners; Richard Stovsky to vice chairman, Midwest region. SPERO-SMITH INVESTMENT ADVISERS INC.: Aneet P. Deshpande to senior vice president, director of equity research. WALTHALL CPAS: Victor B. Szerpicki to assurance manager. WESTERN RESERVE PARTNERS LLC: Andrew R. Ripich, Thomas A. Wyza and William Z. Zaccardelli to analysts.
HEALTH CARE CLEVELAND EYE CLINIC: Scott
KOINONIA: Amylynn Smith to qualified intellectual developmental professional. Denny
Ford to human resources manager and general counsel; Stacy Yarbrough to billing manager. COMS INTERACTIVE: Len Bell, to regional vice president, sales; Giuseppe Saracino, to manager, technical architecture; Jessie Jett, to vice president, marketing.
LEGAL BLACK MCCUSKEY SOUERS & ARBAUGH LPA: James D. Schweikert to partner.
WALTER HAVERFIELD LLP: Rick L. Amburgey to associate.
LEGAL AID SOCIETY OF CLEVELAND: Katherine Barr Hollingsworth to managing attorney, Consumer Law Practice Group.
SHERWOOD VALVE LLC: Tom Apathy to quality manager.
SMARTSHAPE DESIGN: Rachel Miller to marketing coordinator; Sara Shipley to industrial designer.
STAR PRECISION PRODUCTS: Ken Marvar to director, business development.
TIMKEN CO.: Wayne Denny to marketing director.
SUMMIT MALL: Heather Taylor to director of marketing and business development.
MARKETING SWEENEY: Leah Evanovich to account executive.
NONPROFIT BOY SCOUTS OF AMERICA, GREATER CLEVELAND COUNCIL:
LAZORPOINT: Jason Hall to infrastructure support engineer; Clay Archer to project engineer; Christian Fedor to senior point man; Russ Klein to COO. PURE WATER TECHNOLOGY:
Stephen O’Neill to operations manager. SAFEGUARD PROPERTIES: Pat Hoffman to assistant vice president, operations.
STAFFING HARVEST CFO: Jana Argabright to executive recruiter. TORCH GROUP INC.: Abby Callander to research manager.
AWARDS MIDTOWN CLEVELAND: Tracey Nichols (City of Cleveland) received the Government Leadership Award; Jay Lucarelli and JR Lucarelli (Minute Men Staffing) received the Distinguished Contributors Award; Andy Boyer and Molly Priemer (J & M Real Estate Advisors) received the Service Award. NATIONAL ALLIANCE ON MENTAL ILLNESS OHIO: Lori D’Angelo (Magnolia Clubhouse) received the Executive Director’s Award.
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CRAIN’S CLEVELAND BUSINESS
SEPTEMBER 21 - 27, 2015
BREANNA KULKIN, NIGHT MARKET CLEVELAND
MEETING & EVENTS
A MARKET FOR
EVERYONE Events are helping fuel the resurgence of the St. Clair-Superior neighborhood By KATHY AMES CARR email@example.com
Night Market organizers expected about 2,500 people to show up and celebrate Asian heritage at the inaugural open-air event held in June in Cleveland’s AsiaTown and Campus District neighborhoods. Actual attendance doubled those projections. Subsequent social media photos showing the bright-colored costumes, crowds swarming ruby red tents and vendors dishing up xiaochi (small eats), all beneath strings of white lights, enticed event followers. Attendance surged to 11,000 in July, and then to 15,000 in August. “We were pretty surprised,” event organizer Brendan Trewella said. “I needed a couple people’s hands to count how many times I heard, ‘Cleveland has an AsiaTown?’ at each event. But we drew the downtown office crowd leaving work, and then later into the night, we saw more families. There were strollers all over the place.” Night Market is the latest fusion of culture and small business to pop up in Cleveland’s resurging St. Clair-Superior neighborhood.
Neighborhood backers say events like the Night Market, Cleveland Flea, the Slovenian Kurentovanje carnival and one-off restaurant events are luring thousands of festivity-seekers to the area. More importantly, that entertainment is translating into investment. “These events are entry points for broader conversations about the community,” said Michael Fleming, executive director of St. Clair Superior Development Corp. “We’re developing a broader strategy that ties creative placemaking with a food-based economy that will benefit the entire neighborhood.” Economic activity really started to churn after the recession, when Cleveland’s inner-ring neighborhoods saw renewed interest from residents and entrepreneurs passionate about reviving those diverse, historic and underserved communities. St. Clair Superior Development Corp. in 2013 received a $375,000 grant by the national ArtPlace America funding collaboration to support See ST. CLAIR, page 22
CRAINâ€™S CLEVELAND BUSINESS
SEPTEMBER 21 - 27, 2015
Restaurateurs find catering to be a boon to bottom line
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Doug Katz, the chef-owner of Fire Food and Drink at Shaker Square, has found the perfect marketing vehicle for his growing catering business â€” a restored, 1948 diner car located on Lee Road in Cleveland Heights. In that space, known as the Katz Club Diner, he regularly organizes pop-up dinners that serve a fun showpiece to help him market his catering abilities. The diner seats about 50 people, which is perfect for Katz, because he prefers doing smaller events. â€œWe can do events right outside our kitchen that are really unique to the area,â€? said Katz, who develops custom menus based on his clientsâ€™ needs. â€œThatâ€™s why we do pop-ups â€” to let people know. It gets people through the door and interested in the space.â€? Catering has grown to become about one-third of Katzâ€™s overall revenue from Fire, helping keep him busy when business is a bit slower at the restaurant. Katz, of course, isnâ€™t alone, as several well-known Cleveland-area chefs are moving into the catering business. Catering, they say, can provide a fresh source of revenue and diversify their income streams, as well as a marketing platform for growing their other businesses. Yet to be successful, you have to be selective and stick with what youâ€™re good at. Brandt Evans, the chef behind Pura Vida at Public Square and Blue Canyon in Twinsburg, also is seeing
growth in his catering operation. Today, catering encompasses about 25% of his overall business. The largest event that heâ€™s ever done was for Eddie DeBartolo Jr., the former NFL team owner who owns a vacation home in Montana. Brandt served one-pound ribeye steaks and Maine lobster tails to 1,000 guests at DeBartoloâ€™s soiree â€” including Oprah and Michael Jordan. â€œYou learn every time you do these things,â€? said Evans. â€œItâ€™s checklist, checklist, checklist. The hard part of it is that you canâ€™t just run back to your kitchen and grab your spatula and your platter. Thatâ€™s part of the learning curve for us chefs when we get into catering.â€? Katz has been catering since he was 15 years old, and when he first opened Fire, friends would ask him to do small parties. Gradually catering grew to become a sizable part of his business. He outgrew the kitchen at Fire and began searching for a commissary, eventually finding the perfect space in the Lee Road diners, which were built with a generous kitchen and a full, finished basement. Katz employs a full-time catering manager who helps plan events well in advance so that Fireâ€™s staff can handle the volume, especially in cases when the restaurant is booked and the staff also is catering a 600-person party. â€œThe way we market both Fire and the catering company, a marketing company would probably look at it and say weâ€™re not the best marketers,â€? Katz admitted. â€œBut we tend to feel that word of mouth and
recognition from prior clients is where our business will be successful. Thatâ€™s ultimately your best marketing effort. If people are coming in to your restaurant once a week, twice week or even once a month, theyâ€™re a captive audience. If you can provide something similar, in terms of price and atmosphere, then you already have that target market coming to you.â€? Many chefs are growing their catering businesses to meet customer demand. â€œItâ€™s more enticing to have a restaurant catering your party, because of the name recognition and quality recognition,â€? Katz said. Evans, who was trained at the Four Seasons Hotel in Philadelphia, where he learned to prepare meals for weddings and other large events, said itâ€™s critical to know the tricks of the trade. â€œIf you have a 500-person event and you want steak, behind the scenes, weâ€™re pre-grill-marking them, putting them on a sheet tray and putting them in the refrigerator,â€? he said. â€œThen, when the event comes, we cook them and bring them out. Itâ€™s not some poor guy sitting there grilling them and plating them.â€? Itâ€™s also essential to find out a customerâ€™s budget ahead of time so you can gear your menu to their price point, Evans said. â€œAm I flying in fresh truffles or are we doing boneless skinless chicken? Give me a price point first, let me make sure itâ€™s something that I can keep hot and flavorful, and weâ€™ll go from there,â€? he said.
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SEPTEMBER 21 - 27, 2015
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COURTNEY BONNING | BONBON PASTRY AND CAFE When you opened your café, did you intend to do catering too? Yes. I started off doing wholesaling and catering for other people. In fact, the first event I ever did was for Opera Cleveland. I made 1,800 cupcakes, and at the time it was just me, so it took me a really long time. I love doing it. It’s great to have a retail outfit, but you can make a lot of good money and return on your investment through catering. As a retailer, you have no idea how many people are going to walk through your door. With catering, you can control your labor and food cost. It can be a great supplement to a retail outfit.
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We’ve done events for up to 500 people out of our kitchen. We do a lot of breakfasts and baked goods, and boxed lunches are also huge for us. Businesses that have to do events on location will contact us. We do in-house catering as well, and rent out Bonbon. We’ve done a lot of rehearsal dinners and weddings.
Contact: Radhika Reddy at (216) 344-9441, firstname.lastname@example.org
Is it hard to balance the competing demands on your time? Yes, but if we get a huge catering order, we’ve known about it for at least a week. So we can just up the quantity and get it into our production cycle. It’s all about teamwork. We’re all one team, so we just gut it out. We have about 14 staff people right now. They’re all part-time anyway, so it’s more work for them, which really helps us out. I’m smart enough to realize when I’m strapped. I had a person email me in Portuguese who wanted me to cater a wedding for 400 people. I had to use Google translator to figure out what they were saying. At that point, I was like, “No, I can’t do it.” You realize that your end goal is to give people good service. If you’re overstepping, sometimes it’s best to bow out gracefully.
How do you market your catering business? It’s mostly through word-of-mouth. People who have had good experiences with us tend to refer us to new clients. Retail is also a very good way to market our catering. I know that I’m going to get a better reaction and get more people ordering if they already know me. I get requests from companies to spend marketing dollars all the time, but it means nothing to me if I can’t translate it into actual customers.
What advice would you offer to other chefs getting into the catering business? I know this sounds weird, but learn when it’s appropriate to say no. If you stretch yourself too thin and are working with products you’re not comfortable with, then you can’t guarantee that you’ll give people good service. I’ve struggled with this. People ask for really specific, special-order stuff and you end up wasting a lot of time and labor on products that were mediocre because you didn’t know what you were doing. So, I scaled it back a little bit. People appreciate knowing they’ll get your product. Develop a signature that people know they can come to you for. If your specialty is gluten-free, stick to it. Also, work with partners. The more friends you have, the more people are going to send you the work you want to do. If people want a vegan bakery, I’m going to send them to Cleveland Vegan — and they’re going to refer people to us, too.
MOCA’s iconic building, located in the Uptown Neighborhood at University Circle, offers a variety of event spaces. When you add in Marigold Catering and their award-winning cuisine, you can’t miss! Come enjoy a truly special event at MOCA with outstanding catering in a distinctive, artistic setting. Your guests and attendees will thank you!
Please contact Tom Budas at 216.658.6934 or email@example.com
CRAIN’S CLEVELAND BUSINESS
SEPTEMBER 21 - 27, 2015
Cleveland State gets a m a CSU’s 13,000-seat Wolstein Center had struggled to make noise i By TIMOTHY MAGAW firstname.lastname@example.org
mote events among its various properties through arena signage, commercials, social media and email. Cleveland State, on the other hand, had little infrastructure in place and wasn’t able to make much noise in the market — something that was never particularly attractive to artists who look for local partners to do much of the heavy lifting when it comes to promotion. Also, Veritix, the rapidly growing Cleveland-based digital company that operates Flash Seats, will become the exclusive ticket service provider of all primary and secondary ticket sales for events at the Wolstein Center. “It’s one thing to set up a lemonade stand. It’s another thing to market that and attract the broadest audience from a couple neighborhoods away to promote sales,” said Len Komoroski, CEO of the Cavaliers and Quicken Loans Arena organization. “We have a very big bully pulpit as it relates to our cross-promotional and marketing platform that helps separate us and is very attractive to acts.”
Despite having hosted heavyweight acts such as David Bowie, Bruce Springsteen, Jack White and Neil Young, Cleveland State University’s Wolstein Center has gone flat over the last several years. However, university officials are hopeful a new partnership with the Wolstein Center’s one-time rival, the substantially larger Quicken Loans Arena, will help the struggling, 13,000-seat arena carry a better tune. Over the last several years, the Wolstein Center stomached an average annual loss of about $1 million. The facility, which opened in 1991 and sits at the intersection of East 21st Street and Prospect Avenue, had struggled since the 20,000-seat Q gained traction in the mid- to late1990s, and especially after Cleveland Cavaliers majority owner Dan Gilbert infused his own cash into the arena. University officials had tossed around countless ideas for remaking the awkwardly sized event space, including tweaking its size or demolishing it altogether. In 2010, Cleveland State brought in outside partners Nelligan Sports Marketing and Global Spectrum to secure more events and drive more revenue into the facility, though their efforts fizzled and their contracts expired this summer. “It’s obvious since Gilbert got involved there that they’ve turned that thing (The Q) into a machine,” Cleveland State spokesman Rob Spademan said. “That’s what impacted us. We were getting the leftovers. Instead of competing with them, we’ve decided to collaborate.” This summer, The Q and Cleveland State announced a two-year agreement that’s calls for the Vikings’ men’s and women’s basketball teams to play a handful of games at the home of the Cleveland Cavaliers. For one, that’ll give the Cleveland State teams some much-needed visibility. However, and perhaps more importantly, The Q’s events operation will take over bookings of the Wolstein Center for national concerts, shows and other non-university events. The Q’s marketing engine is robust. In addition to promoting concerts and other events, the Q sells tickets for the Cavaliers, Lake Erie Monsters, Cleveland Gladiators and the Canton Charge. The Q then is able to cross-pro-
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Staying active And The Q certainly knows what it’s doing. In 2014, the arena hosted 16 concerts, 43 family shows, 12 other sporting events (including the Mid-American Conference men’s and women’s basketball tournaments), three conferences and events that weren’t open to the public and more than 1,300 banquets and meetings. Once the home games of the Cavs, Monsters and Gladiators are factored in, The Q’s 12-month attendance is slightly above 2.1 million — and that doesn’t include any postseason contests. Because The Q is such an active arena, Komoroski said it’ll also be valuable to be able to market the Wolstein Center as an option to promoters if The Q is already booked. That should translate to more events coming through Northeast Ohio, he added. It’s still unclear at this point whether Cleveland State is planning any sort of major investments in the Wolstein Center. The Q has been successful is because its infrastructure can support the increasing complexity of today’s performances, Komoroski said. Because Cleveland State still
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m ajor assist from The Q e in a market dominated by the Cavs’ powerful ownership group a
Because of stiff competition in the market, the Wolstein Center has lost, on average, about $1 million a year. owns the facility, the university would be required to foot the bill for any sort of upgrades.
Howdy, partner Meanwhile, the burgeoning relationship between Cleveland State and The Q isn’t all that unusual, though it might seem as such given the historic competition between both venues. In Columbus, for example, Ohio State University handles bookings for both the Schottenstein Center and Nationwide Arena. The same sorts of relationships between venues also exist in Philadelphia, Washington, D.C., and other markets.
Michael Belkin, senior vice president for the entertainment and events giant Live Nation, characterized the deal as a classic win-win. For one, he said Cleveland State gains “well-respected and well-oiled machine to come in and help them with visibility, professionalism, marketing and talent procurement.” Belkin said the Wolstein Center may have lost an edge in recent years because of The Q’s sophisticated curtaining system, which allows acts to manipulate the amount of available seating in the arena. “In many cases, that left Cleveland State on the outside looking in,” Belkin said. “This will allow both buildings to get a little more aggressive. This is overdue, quite frankly.”
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IngenuityFest will c Now in its 11th year, the event tries to find n By CHRISSY KADLECK firstname.lastname@example.org
IngenuityFest, now in its 11th year, showcases the creative fusion of the arts and technology in the region.
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At Design Lab Early College, 60 ninth graders have been tasked with transforming a cafeteria full of wooden pallets into five funky outdoor seating areas that will be installed at next month’s IngenuityFest at North Coast Harbor. They’ve been challenged to think beyond the typical bench and to create fun — even surprising — spots to sit and watch performances at the upcoming festival. “I have no idea what the kids are going to come up with,” said Sean Wheeler, campus coordinator at the high school, which is a part of Cleveland Metropolitan School District. “But I know that I can trust in their innovation. I can trust in their creativity that’s been so long subdued — so long just crushed — in traditional education.” The collaboration with Design Lab is just one example of the dozens of collaborations that have been the hallmark of IngenuityFest, a threeday fest now in its 11th year that showcases the creative fusion of the arts and technology in the region. The theme of this year’s festival, which runs Oct. 2-4, is “Transitions” — perfectly appropriate for the nonprofit, which is grappling with grow-
ing pains, organizational changes and the monumental task of coordinating a festival that attracts around 40,000 people every year. “We’ve always seen ourselves as conveners and presenters … pulling all the resources together from the creative community to the business community to make exciting things happen,” said Paula Grooms, executive director of Ingenuity Cleveland. Ingenuity, for one, has grown to offer year-round programming through various strategic partnerships. They include the Cleveland Mini Maker Faire with the Cleveland Public Library; Agents of Ingenuity Summit with the City Club of Cleveland; Up and Down East Ninth with LAND studio; and various meetups and workshops. “We’ve really been doing a lot of soul searching and thinking to ourselves, ‘How do we use Ingenuity as this tool to forge longer connections amongst the artistic community in town and the creative community?’” said Emily Appelbaum, the newly appointed program director for Ingenuity Cleveland. “We’ve had good success with using under-utilized urban resources. Can we do the same thing with under-utilized community resources?” Downtown Cleveland wasn’t exactly a friendly environment when Inge-
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l continue to evolve d new ways to highlight technology, the arts nuity launched in 2004. The city’s core, for instance, was littered with empty storefronts and suspicious alleys. Its founders had the idea to create an arts and technology festival that would animate underused spaces and get people excited about what was possible in the heart of the city, Grooms said. Appelbaum added, “The festival was conceived as moveable feast: Go to a place, ingest it with new life and with a vision of what could be, and then once their work was done to move on.” Ten years later, downtown Cleveland, in many regards, has transformed itself, and Ingenuity’s organizers like to think they’ve played a role in that renaissance. Without question, Ingenuity was one of the first organizations to embrace the festival trend, which has since been embraced by other arts and community organizations in the city. Humbling, sure, but it also has raised the level of competition for funding. Ask Appelbaum about the festival budget, and you might get a chuckle. It’s a moving target. “We are fundraising up to the day that the doors open. We are not funded by the city. We’re not funded by the county. We raise every single dol-
lar that we spend in a year. Then we spend it,” she said. “We are running a massive free event on an incredibly tight shoestring budget. That budget looks different every single year. It changes every year. Some years it’s bigger than others.” This year’s festival won’t be the largest, but Appelbaum said the event has been fully embraced by the community. More than 100 businesses and artists are expected to come together to create unique installations — each of which represents a partnership. Take StretchTape, a Clevelandbased company, which is donating a generous amount of its industrial tape that artists will then use to build large, glowing sculptures at the festival’s site. “We think of ourselves really as having a lot to offer to economic development interest in town; and workforce development interest in town; and educational interest in town just because we’re painting such a strong picture of how individual creativity fits in Cleveland’s overall economic landscape,” Appelbaum said. “We are actively bridging the gap between our manufacturing community, industrial community, educational community, and artistic creative community.”
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SEPTEMBER 21 - 27, 2015
Time to tweak that presentation Are you still using the same PowerPoint or Keynote presentations that you or your staff created years ago? If so, perhaps it’s time for a makeover, as technology and the expectations of your audience have changed dramatically. Here are a few tips to bring your presentations up-to-date so you’ll dazzle your audience and get your message across. Matt Radicelli is the founder and CEO of Rock The House Audio Visual and Rock The House Entertainment.
SIZE AND FORMAT: 10 years ago, widescreens (16:9 aspect ratio) were just gaining mainstream popularity and most TVs and projection screens were closer to
square (4:3 aspect ratio). Make sure to check the aspect ratio (shape) of the screen you’ll be presenting on and create your masterpiece to match. Otherwise, you’ll be wasting space, and there will be unnecessary black bars on the screen. LESS IS MORE: We all know that attention spans are getting shorter and shorter. There are certainly situations where you need a lot of slides with tons of content, but try to take cues from everything around you. The most popular places to eat, for example,
have menus that fit on one side of one sheet of paper. Twitter only allows messages that are 140 characters long. This means you need to get to the point and deliver content with pinpoint accuracy. FONTS AND TYPEFACES: Try not to use the default fonts commonly selected when you first open PowerPoint or Keynote. Instead, choose typefaces that fit your vision. Rather than playing it safe with tired fonts like Times New Roman, Arial, Verdana or Tahoma, consider Myriad, Helvetica Nue or
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VIDEO AND WEB CONTENT: Don’t rely on the Internet. Ever. There’s nothing more embarrassing than a stalled presentation because you have no Internet connection. Save your audio and video content locally (on your computer) and reference those files. Do not link to the web or YouTube. Otherwise, if there’s no Internet available or it drops out during your presentation, you’ll be in the weeds. Moreover, always save copies of your audio and video files in the same folder you save your presentation. That way you never have to relink them, or wonder why they’re not working.
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TEMPLATES: Work with any reasonable designer, and they’ll likely argue against using templates when creating almost anything. If you don’t want to hire a designer, templates can be a huge help. But if you choose a template, be sure to make it your own. The key is to make it look as if you didn’t use a template. Graphicriver.net is a great resource to purchase reasonably priced templates created by award-winning designers. IMAGERY: Sorry, but the days of using clipart are long gone. Unless you’re just trying to be funny or nostalgic, don’t do it. Instead, use imagery that’s compelling or stunning. Consider spending a dollar or two on professional images from websites such as istockphoto.com, shutterstock.com or dollarphotoclub.com. While they’re still considered stock images, chances are you won’t choose the same images as someone else, which makes your overall presentation unique.
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Calibri. Resources such as Dafont.com or 1001freefonts.com can be very helpful when searching for the perfect type. However, if you use unique typefaces, save a backup copy of your fonts. You may need to provide them to an audio visual company or reinstall them.
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SAVING, SHARING AND PRESENTING: Using a cloud storage service such as Dropbox gives you great flexibility. Not only will you be able to share your presentation with anyone that needs it, but Dropbox also saves every version of your saved file so you can restore or undelete it at any time. If you’re using your laptop for presentations, try to have a backup and test both them. If an AV company is using their equipment to play back your content, be sure to get it to them a few days early so everyone has time to test it. TRANSITIONS: Don’t use fancy transitions that impressed you in 2002. They’ll make you presentation feel dated. Sure, they can add some spice, but more often than not they’re the transitions your audience has seen dozens of times. Focus your energy on the content and take inspiration from commercials you see on TV. You’ll notice there are lots of organic transitions, but they’re mostly well-done static cuts, simple wipes or fades. If you or your staff aren’t savvy enough to make your presentations rock, consider using a professional graphic artist, or hiring a pro from a service such as fiverr.com. For a few dollars, a pro can turn your outline into a masterpiece.
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ST. CLAIR continued from page 13
its vision of reframing a neighborhood around upcycling — a process that involves transforming discarded materials into something useful and creative. The following year, the U.S. Department of Health and Human Services awarded an $800,000 grant to fund a food hub and year-round farmers market at the new Hub 55 complex on East 55th Street. The neighborhood’s latest infusion is in the form of a $735,000 grant from the Kresge Foundation, which fortifies the community development group’s master plan of driving transformation based on creating a food and arts-based economy. “Our ArtPlace award focused on creative placemaking around upcycling,” Fleming said. “Our Kresge support is taking us to that next level by helping us establish creative placemaking around food.” Festivals and events play a key role in facilitating that plan.
Celebrate good times
BREANNA KULKIN, NIGHT MARKET CLEVELAND
St. Clair-Superior’s events are luring more investments into the neighborhood.
The Cleveland Flea has been a catalyst for pumping energy into the community. The Flea, when it first launched in 2013, drew 40 vendors and 1,500 shoppers at Kurentovanje Slovenian Festival on St. Clair Avenue. Founder Stephanie Sheldon rotated the location of monthly portable markets, connecting neighbors and introducing visitors to nostalgic
neighborhood landmarks such as Slovenian National Home, Sterle’s Country House and the Tyler Village historic redevelopment project. The Flea now attracts 35,000 shoppers and 140-plus vendors each month between April and November, and it has helped spur residen-
“Our success depends on attracting money into the neighborhood so that all residents benefit, not just those representing a certain economic strata.” – Michael Fleming executive director, St. Clair Superior Development Corp. tial and commercial interest into the neighborhood. Meanwhile, Night Market organizers are gearing up for another boon in attendance this Friday, Sept. 25. Demand for vendor participation has increased, from the initial 32 to 75 this month. “Vendors have seen market visitors trickle into their establishments,” Trewella said. “Vendors make things for the market that are not on their regular menus, and they’re getting requests for those items when people come into their restaurants. That’s interesting.” Hub 55, which includes Sterle’s,
Café 55 and a future brewery, has been trying to build momentum in and around that 42,000 square-foot retail and commercial complex at East 55th and St. Clair Avenue. Events such as this month’s first Ultimate BBQ Throwdown, involving some of the region’s younger generation of butchers, as well as the recurring Dinner in the Dark charitable dinner series, are attracting newcomers. “Once our brewery and flex space are available, we’ll be able to rent a really unique industrial space for classrooms, weddings or corporate events,” said Jeff Jarrett, Hub 55’s executive chef and general manager. Indeed, these festivities draw outside interest. But the larger goal is improving food security by establishing a food hub there that serves not only affluent culinary adventurers, but low-income neighborhood residents as well. “Our success depends on attracting money into the neighborhood so that all residents benefit, not just those representing a certain economic strata,” Fleming said. Community stakeholders are expediting those efforts to tie creative placemaking and equity to a local food economy through an initiative dubbed “ag|re|culture.” This project at Hub 55 will create community access to fresh local food and handmade goods. It also will educate residents on how to cook with fresh ingredients sourced from its farmers market, and will provide
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new ancillary business support. “The goal ranges from how to help residents become market gardeners using the vacant lot next door, to helping bring value-added products sold at the Flea into the Hub 55 marketplace,” Fleming said. Community leadership is helping activate neighborhood engagement by hosting Txokos, or Basque-style gastronomic events where people cook, eat and socialize, in lieu of the traditionally minimally productive block club meetings. The first one, held in June, drew stakeholders and residents to the Slovenian National Home. “You get more positive engagement when people converge around food. We had individuals who were black, white, Asian, young and old eating a fusion of southern soul food mixed with Eastern European dishes,” Fleming said. “We’re creating a new cuisine.” The community development group in 2014 allocated $623,460, or 51% of its total expenses, toward supporting community programs and arts and culture. While a cursory glance at its spending shows a collective 15% allocation on real estate and business development, Fleming noted the breakdown does not accurately depict the broader picture of how that entity is weaving arts expenditures into new business and real estate investments. “A lot of our programming bleeds across multiple channels,” he said.
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BREANNA KULKIN, NIGHT MARKET CLEVELAND
Events like Night Market and the Cleveland Flea are attracting thousands of festivity-seekers to Cleveland’s rebounding St. Clair-Superior neighborhood.
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Wedding ind Established and new vendors a By MICHELLE PARK LAZETTE firstname.lastname@example.org
Even the drinks served by Sweet Water Caravan out of its vintage camper come with a splash of personalization.
When a wedding was hers to plan, the greatest choice Rachel L. Yagl remembers having to make was whether the napkins would be white or colored. The year was 2002. “Weddings years and years ago were very cookie-cutter,” reflected Yagl, director of sales and bridal marketing for Akron-based Today’s Bride, which publishes a namesake magazine and hosts six bridal shows annually in Cleveland and Akron. “It was, “This is what we do: We go here, we set up the round tables, and we put white linens on the tables.’ “Now, it’s where are you going to rent your linens, are they going to be crushed, are they going to be satin, are you just going to do plain with a runner on them, and then, what are we going to put on top of those linens?” she explained. And, that’s only the linens. Increasingly, the details of weddings today, from the drinks poured to the escort cards that point guests to their seats, are hyper-personalized, and that has new vendors hanging their shingles to meet demand that didn’t used to exist, and others adapting. Dean Miller, whose family business, Miller’s Party Rental Center in Akron, has operated since 1949 and rents tents, linens, flatware, tables and more to hundreds of weddings each year, describes the industry’s sea change in this way: “It’s no longer one-size-fits-all.” Though local wedding vendors say some desire for personalized details has always existed among some couples, an increasing number of brides and grooms began demanding more about a half decade ago. The do-it-yourself, handmade trend emerged first, driven by recession-squeezed budgets. It coincided with and helped propel the popularity of rustic weddings, which
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ndustry gets personal s alike capitalize on unique tastes of Northeast Ohio brides continues today to a greater extent in Northeast Ohio than it does on the coasts. What many say is the enduring trend, however, is not so much the mason jars and burlap, but the appetite for personalization. “A lot of brides, maybe it’s unattainable to hire someone to create that personalized feel to their wedding and for that reason, they do do-it-yourself,” said Karin VanCure, a co-owner of Something White, a bridal gown boutique in Independence. “There’s another realm of brides who maybe aren’t crafty or don’t have the time to DIY their wedding, but that doesn’t mean they don’t want the personalized touch to their wedding day.”
Here comes the brides So, more and more, one-of-a-kind details are achieved both through one’s own craftiness and through vendors’ enhanced slates of offerings. The landscape has changed, too, in that new types of venues, particularly barns, have opened to host weddings, which in turn has created more need for rental items and other services, including Krissy Widuck’s. Many of the weddings to which Widuck has driven her mobile bar called Sweet Water Caravan, which she launched last year using a vintage camper she won in an eBay auction, have taken place at unconventional places such as barns and backyards. And, yes, the drinks she’s serving come with a splash of personalization. “Rum and coke — you’re not going to remember that,” Widuck said. “(You will remember) if you have a watermelon margarita, and it’s all organic, something unique, with a really cute garnish.” With new vendors vying to cater to Northeast Ohio’s be-
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trothed and with some couples opting to go it alone, some in the business are left competing against pricing that undercuts their own and, worse, fewer bookings. “A lot of times, (new vendors) are coming in and not really researching pricing,” said Amanda Cursaro, lead designer and founder of Baci Designer, a Cuyahoga Falls custom stationery boutique. Or they’re offering much-discounted rates purposely because they’re just getting started. Ironically, some of the industry’s newest competitors are brides who DIY’d wedding details they’ve found they now want to sell to brides. “Where before you were just really competing with the other DJs in the market, now you’re fighting with DJs and cousins and friends of co-workers and Craigslist,” Yagl said. “It’s definitely gotten harder for people to find brides and to book services.” But, many vendors have committed to meeting brides where brides want them, Yagl said. “What we’re seeing a lot of people doing is lots of different packages these days,” Yagl said. “Years ago, it would be, ‘This is what I do, this is how much it is.’ (Vendors) are adapting, creating different budgets … trying not to exclude any bride.”
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‘I do’ have an idea Though DIY tendencies aren’t infringing on her sales as much as others’ (“I think fashion items are pretty far down the list on things that you’re going to make for yourself,” VanCure says), Something White started four years ago the Boutique Bridal Bazaar to introduce brides who want a curated feel to vendors that specialize their offerings. Bridal shows are a place to pick up stylized
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The personalized approach to weddings has always existed to some extent, but today’s brides and grooms are demanding even more attention to detail. continued from previous page
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ideas, but far and away, Pinterest and other social media have fanned the flames of personalization, local vendors agree. “I really think without those resources, it would be hard for as many brides to come up with as many ideas as they do for their weddings,” VanCure said. That readily available, worldwide information both benefits and challenges vendors. On one hand, it clarifies expectations, said Miller, vice president of Miller’s Party Rental. In years past, the only person who knew what a wedding was “supposed” to look like was the bride. “Now they walk in with a picture of what’s in their head,” Miller said. “It makes it easier on us.” One downside, though, is many brides make up their minds on details without realizing what they require and cost, vendors say. In turn, the industry suffers a fair amount of “bad rap” about what it charges, said Ann King, who owns Borrow Vintage + Eclectic Rentals, a custom rental house of furniture and accessories in Cleveland. “People will come in with a picture of a wedding that probably cost $150,000 … and they expect to be able to get it,” King said. “Or they expect that they can do it themselves. There should be a disclaimer: ‘This was done by a professional who does this all the time.’” Founded in August 2012, Borrow will outfit an estimated 200 weddings this year, some with a custom couch or two, others with upward of 300 chairs and 30 tables made from upcycled wood, King said. While Borrow and other companies that have cropped up are competition for Miller’s Party Rental, they also are resources to which Miller can refer brides when he’s simply not going to source what they seek, he said. While he’s doubled the size of his linen storage to accommodate the growing number of colors and sizes he now offers, he’ll leave the mis-
matched china rentals to Borrow, for example.
A blessing or a curse? Bridal gown boutique owner VanCure calls Pinterest and the personalization it inspires a blessing and a curse for the industry — and its brides and grooms. “You can get all these ideas, but it sets the bar high,” she said. “Fifteen years ago, you went to a wedding, there was a folded escort card and that was it. (Today) it has to be attached to a wine cork and glued to a tree stump somehow. Brides doing personalized feel they can’t put a folded piece of paper and put a name on it. It has to be special, it has to be unique, it has to go with the theme.”
“Fifteen years ago, you went to a wedding and there was a folded escort card and that was it. (Today) it has to be attached to a wine cork and glued to a tree stump somehow.” – Karin VanCure, co-owner, Something White So, while VanCure senses that some of her brethren consider the trend toward personalization and DIY to be a net negative, she sees a flip side. “I suspect that it’s a net positive,” VanCure said. “It’s just upped the ante on weddings in general. “I think that people are finding things that they now need for their weddings that might not have occurred to them in the past. Overall, the industry has probably grown because of it.” Of course, some brides aren’t contributing to that growth because they’re doing it themselves. When it comes to DIY, it’s stationers that Yagl suggests have been squeezed most. “Things that could be done ahead of time are things that have
the most vulnerability to DIY,” she said. “I don’t see too many brides doing DIY of stuff they have to do a day or two before their wedding. I don’t see brides taking on a DIY task of cooking all of the food for their reception or baking the cake.” Cursaro agrees that the business of wedding design and décor has been hit hard. That said, personalized wedding branding, which requires design details such as theme, textures and color palette to extend from a couple’s save-the-dates to their “hashtag napkins” and more, is not necessarily something one can piece together online, Cursaro asserted. Plus, more brides are suffering their very own Pinterest fails, realizing that not all DIY projects are created equal.
‘Til death do us part Vendors expect this marriage of personalization and weddings will not be short-lived. Today’s Bride’s Yagl expects it to continue, in part, because of the vast ideas now at people’s fingertips and because this generation of brides and grooms has always had near-instant personalization and gratification. They order and are drinking customized coffees in mere minutes. They can Google and retrieve the answers to any question that occurs to them when it occurs to them. “If they don’t get what they want, they’ll just do it themselves,” she said. Cursaro can’t envision brides reverting to the weddings “in a box,” though she predicts the ways personalization is achieved will change over time. VanCure doesn’t expect to see demand for personalization fade, either. “I don’t see how, after having these really embellished weddings, anyone attending those or looking on Pinterest could decide to do something that’s more generic,” she said. “By today’s wedding standards, it just doesn’t measure up.”
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When the Republican National Convention comes to Cleveland next July 18-21, all other events will take a back seat. If they can find a seat at all, that is. Because the areaâ€™s hotel rooms, reception halls, restaurants and, in many cases, transportation infrastructure, all will be working overtime to cope with the 50,000 politicians, politicos, pundits and media members expected to come to town. It will be a good time to host politically themed parties for locals, or out-of-towners who already have travel arrangements related to the convention. However, it might not be the best idea to invite out-of-town friends and family members in for a wedding or other event. â€œI wouldnâ€™t schedule anything you havenâ€™t already,â€? jokes Rob Falls, founder and president of Clevelandbased Falls Communications, a marketing and public relations firm, which also handles special event planning and execution for clients. Falls said he hasnâ€™t even had to tell any local clients to avoid the week of July 18 for any special events they might want to have next year. They already know that little to nothing will be available as the convention uses up all of the normally available resources, he says â€” and
theyâ€™re right. â€œTry to get a hold of a good caterer, a good space or a good anything â€” itâ€™s like, â€œwell, weâ€™ve got the party of the century going on, weâ€™re kind of busyâ€™ â€Ś Anyone trying to do that is just really not aware of whatâ€™s coming,â€? Falls said. Most of the areaâ€™s hotel rooms already are booked, and not just in and around downtown Cleveland and Quicken Loans Arena, where the convention will be centered. Hotels are booked solid all the way down to Canton, if not beyond. Many wonâ€™t even really be open to the public â€” as theyâ€™ve already committed all of their rooms and services to the event. â€œWe wonâ€™t be open during the commitment,â€? said Mike Kelly, general manager of the Hilton Garden East hotel in Akron. Kelly said his hotel, which just opened this year, has committed all of its 140 rooms to the convention for the duration of the event. Even big, long-standing events that take place every year are being careful not to overlap and compete with the Republican Convention. Kelly said local officials have told him and other hoteliers that they were careful not to hold Akronâ€™s Bridgestone invitational golf tournament during the week of the convention. The golf tournament normally takes place in August, but was moved so it would not overlap with next yearâ€™s Summer Olympics in August. It moved to June 29-July 3, so as not to take place during or close to the Republican Convention.
But there will also be opportunities â€” especially for downtown businesses. That includes Fallsâ€™ offices, which will overlook much of the convention action from their perch 25 stories above Public Square. Falls said his office, along with many others downtown, will be hosting special events throughout the convention. â€œWeâ€™ll definitely be using our office to our advantage. Weâ€™re right on top of it. â€Ś Weâ€™re not going to have client meetings in our offices during that time, but weâ€™re probably going to have several receptions,â€? Falls said. But the grinding halt forced on nonpolitical events the week of the convention will probably be short lived. There will be weddings the weekend before it and more weddings the weekend immediately after conventioneers leave, predicts Charles Klass, executive vice president of Executive Caters at Landerhaven in Mayfield Heights. Actually, Klass is doing more than predicting â€” heâ€™s hosting weddings on those weekends. But they are mostly for in-town guests, he said. It might be tough for some out-of -own wedding guests to get in, even on the weekends and during the week, he said. â€œWe are, for now, keeping our mid-week spaces open. â€œWeâ€™ve taken weddings for the weekends, but for the four days of the actual convention, the hotels along Chagrin Boulevard and every-
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e already been set place else will be jammed,” Klass said. Similarly, event planner Melanie Tindell, owner of Oak and Honey Events in Cleveland, said her wedding business is steering clear of downtown during the actual convention, but is otherwise planning weddings as usual. Tindell said she didn’t have any clients who changed their plans because of the convention. “I am recommending areas that are not near downtown where venues and hotels are not already booked,” she said. “This way we insure the guests don’t have to deal with the headaches of the convention coming to town.” Klass said Landerhaven will host Republican-related functions during the days of the actual convention, both at its main facilities as well as the English Oak Room in Tower City. Landerhaven was originally holding 10 days to be used exclusively for events related to the Republican convention. But it decided to book weddings on the weekends, with only four days being reserved for conventioneers, once it learned more about how it might be affected. “The convention starts on a Monday, so we don’t think there will be that much activity in the suburbs that weekend,” said Klass, who added that one wedding has already been booked for that following weekend since the Republican convention was announced.
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GLOBAL CENTER FOR HEALTH INNOVATION ADDRESS: 1 St. Clair Ave. NE, Cleveland CAPACITY: Executive boardroom, 48; conference center, 56 (with tables); meeting spaces in leased â€œshowcaseâ€? suites, various MEETING TYPE: Meetings, conferences with breakout sessions, seminars, news briefings Clevelandâ€™s year-old Global Center for Health Innovation will spawn a new offering next month with the opening of a conference center. Executive director Barbara McBee said the conference suite will complement a previously opened executive board room and, like the board room, comes with all the bells and whistles one would expect in a modern innovation hub. â€œThe board room has a one-touch panel. From a panel in the wall, (when a user) presses presentation, the drapes automatically close, the lights dim, the screen comes down and everything turns on,â€? McBee said. â€œIt is state-of-the-art, but also very intuitive and easy to use.â€? The conference center is one big room that can be divided into three areas by separation screens, which double as white boards. Each of the three breakout spaces has its own monitor. Microphones are embedded in the ceiling and facial recognition software helps built-in cameras pan to specific speakers. The Global Center for Health Innovation opened in 2014 and has 16 suites in which companies can showcase health care tech and tools. Some of those also have meeting spaces. McBee said priority for the event bookings at the board room â€” and soon the conference center â€” goes to firms in the health care field. And, for now at least, both spaces are available free of charge. â€” Judy Stringer
Opened summer of 2014 in the West Bank of the Flats, Music Box Supper Club has emerged as a popular destination for live music in Cleveland. More than just a nightclub, the two-story venue houses the Rusty Anchor Restaurant downstairs and a large concert hall on the second floor. Private events manager Brittany Reye said the restaurant features a private dining room that can accommodate up to 50 guests. Along with river views from an outdoor deck, the private dining room has a large flat-screen TV that can be used for presentations. â€œWe are normally closed during the day but for 30 or more guests we can hold morning or afternoon events until 4 p.m. in our entire downstairs space,â€? Reye said, adding that the restaurant can accommodate up to 250 guests. Bigger events can hold court upstairs in the supper clubâ€™s concert hall, which holds 250 guests for a seated affair or around 400 for less formal receptions or cocktail parties. Reye said guests of the concert hall have full access to its roof-top deck with an â€œamazing view of the city.â€? In addition, the concert hall has a large stage with projectors on each side for videos or PowerPoint presentations. Wired microphones and a podium for the stage also are available. Music Box provides all food and beverage for its event spaces and has a separate events menu. â€” Judy Stringer
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STUDIO 526 ADDRESS: 526 Grant St., Akron CAPACITY: 175 MEETING TYPE: Corporate meetings and events, weddings, commercial shoots, “you name it,” said proprietor Bruce Gates Photographer Bruce Gates has been working out of a renovated brewing company garage — once owned by Burkhardt Brewing Co. — since 1999. Five years ago, he decided to share his unique Akron space with others. The 7,000-square-foot garage has hosted birthdays, bar mitzvahs, craft shows and corporate events, including recent gatherings for Coca Cola and GOJO Industries. The site includes a kitchen, lounge area and a 5,000-square-foot event space that can accommodate up to 175 guests. Distinctive features include soaring ceilings —
there is 14 feet between the floor and the first ceiling beam — and a massive, white wall that provides a terrific backdrop for videos, digital presentations or animation. “I use the wall in my photography, but event planners have found many creative uses for it as well,” Gates said. In addition, the site provides Wi-Fi throughout, ample power supply for high-tech digital electronics and plenty of specialized lights, including a large, suspended Chimera softbox for diffused, softer lighting. Videographers, in particular, have discovered Studio 526 as a useful soundstage. The rehabbed garage also features oversized overhead doors that allow bulky equipment to be moved in and out easily. The lounge area, Gates added, is a great place for smaller business meetings. — Judy Stringer CONTINUED ON NEXT PAGE
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their event.” The Happy Days Lodge, located on state Route 303 halfway between downtown Peninsula and Hudson, features a 4,000-square-foot great hall and a spacious screened porch. The hall also includes modern audio-visual equipment with a large pull-down screen and a sound system. Reese said the lodge can accommodate up to 200 seated guests or 285 theater style and — like the other two park rental sites — has Wi-Fi. The Hines Hill Conference Center, off Riverview Road, accommodates between 25 and 45 guests, depending on the meeting style. The Stone Cottage, an old-world-style building on the grounds beside Hines Hill Conference Center, can fit 12 guests in its rustic space, which includes a board room, a full kitchen and a living area. For larger events, the Hines Hill facilities can be rented together and with an outdoor tent and an onsite barn can accommodate events with up to 150 guests, Reese said. — Judy Stringer
SEPTEMBER 21 - 27, 2015
CRAINâ€™S CLEVELAND BUSINESS
2015 EVENT EXPO WHEN: 9 a.m.-3 p.m., Tuesday, Oct. 6 WHERE: The Improv, Shooters & The Music Box Supper Club; 1148 Main Ave., Cleveland, Ohio 44113 REGISTRATION: CrainsCleveland.com/EventExpo Presented by Rock the House in partnership with Crainâ€™s Cleveland Business and Team Promotions, the 2015 Event Expo is the trade show of the year for anyone that plans events â€” business meetings, weddings, corporate retreats, etc. Free to attendees, this yearâ€™s theme is â€œRed, White, Blue and You â€” Planning for 2016.â€? This yearâ€™s expo will give event professionals a head start on planning for events around the 2016 Republican National Convention. OPENING REMARKS: Marc Jaffe, stand-up comedian, writer for â€œSeinfeld,â€? author, playwright and founder of Shaking With Laughter.
OPENING, 9 A.M.-10 A.M. KEYNOTE DISCUSSION: â€œRed, White, Blue and You â€” Planning for 2016,â€? featuring Chris McNulty, director of community and political affairs for the 2016 Republican National Convention and John Campanelli, publisher of Crainâ€™s.
THIS YEARâ€™S EXHIBITORS AND SPONSORS: Achieve Incentives & Meetings Agostinoâ€™s All City Candy All Occasions Aloft Cleveland Downtown Ariel International Center LLC Benjamin Rose Institute on Aging Clear Choice Photo Booth Cleveland Convention Center & Global Center for Health Innovation Cleveland Metroparks Cleveland Metropolitan Bar Association Colortone Staging and Rentals Crooked River Barbeque The Corner Alley Destination Cleveland DoubleTree by Hilton at Lakeside EB Fitness Euclid Beach Boys Event Source Freeway Lanes Bowling Group
GiveSmart Great Lakes Science Center Greater Cleveland Aquarium High Voltage Indoor Karting Hot Cards House of Blues Cleveland Improv InterContinental Hotel & Conference Center ISES Cleveland I-X Center La Villa Banquet & Conference Center Lâ€™Nique Specialty Linen Rental Marbella Event Furniture & Decor Rental Marigold Catering Marvin Montgomery MOCA Music Box Supper Club MVP Valet Nautica Queen
The NEW Center at Northeast Ohio Medical University (NEOMED) Nitebridge Entertainment Normandy Catering Ohio State Park Lodges & Conference Centers PCI Entertainment Raise the Roof Entertainment Red Maple Inn RED the Steakhouse Rock the House Rock and Roll Hall of Fame & Museum Shooters Spice of Life Catering Co. St. Michaelâ€™s Woodside Event Center A Taste of Excellence Team Promotions ThistleDown Racino The Westin Cleveland Downtown Windows on the River 100th Bomb Group Restaurant
OCT 13 5â€“7 PM Network with Local Businesses!
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CRAINâ€™S CLEVELAND BUSINESS
SEPTEMBER 21 - 27, 2015
LARGEST SUBURBAN OFFICE PROPERTIES I I I I Net rentable square feet Name Address Rank Phone
Square feet available
Rent per square foot (in dollars)
Leasing agent Phone number
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SEPTEMBER 21 - 27, 2015
FANTASY SITES continued from page 1
FanDuel Fantasy Lounge. And if you’ve watched a Cleveland Indians game at Progressive Field this season, you probably saw the DraftKings sign on the tarp along the left-field line. FanDuel and DraftKings truly are everywhere, and their influence is only expected to grow, much like the number of entries in daily pots that reach as high as nine figures. The daily fantasy leaders reportedly spent a combined $26.9 million on nearly 8,000 commercial airings during Week 1 of the NFL season. DraftKings forked over an industry-high $16.3 million on NFL ads — ahead of such heavyweights as Warner Bros., AT&T, Universal Pictures, Verizon and GEICO. FanDuel ranked seventh with more than $10.5 million spent on opening-week NFL commercials, according to advertising tracking firm iSpot.TV. “We’ve caught a bit of a blowback over that,” FanDuel cofounder and CEO Nigel Eccles said. “I can promise that will subside a bit as we get into the season.” The ads were so prolific that they were roundly criticized on social media, and got the attention of Rep. Frank Pallone, a New Jersey Democrat who requested a hearing from the panel that oversees professional sports and gambling. (Since it’s classified as a game of skill, fantasy sports have thus far escaped antigambling legislation.) But any publicity is often viewed as good publicity by young companies, and Eccles said there’s a method to the daily fantasy sports marketing madness. “People who are complaining were probably not going to sign up anyway,” said the Irishman who launched FanDuel with four others in 2009. “We can live with it. If the ads weren’t working, we wouldn’t be running them.” Eccles said FanDuel’s ad spend was in line with its revenue growth. The latter tripled year-over-year, so the company invested three times as much on its media blitz. The number of people who participate in daily fantasy sports — which features pools of all sizes, and requires players to select a team based on the operators’ scoring rules and salary cap — is expected to reach 56.8 million this year, according to the Fantasy Sports Trade Association. Eilers Research estimates that the daily fantasy market will hit $1.18 billion by 2020, with a compound annual growth rate of 55%. Those stats, as you might expect, are as appetizing to pro sports teams and leagues as the market is to fantasy players looking to make a fast fortune.
‘Interesting category’ for Browns On April 22, FanDuel announced that it had established exclusive partnerships with 15 NFL teams, including the Browns. The company now has deals with half of the NFL’s 32 teams, and DraftKings is partnered with a dozen clubs. “It’s probably no different than a typical company relationship, be it Ford or Pepsi or UH,” Browns president Alec Scheiner said of FanDuel. “Obviously, it’s an interesting category. What’s neat about it is it just drives more and more viewership and interest in the NFL. It’s
CRAIN’S CLEVELAND BUSINESS
FANTASY GAMES, REAL MONEY Combined, DraftKings and FanDuel have partnerships with 49 of the 62 teams in the NFL and NBA. A look at each daily fantasy sports operator’s team sponsorships: NFL PARTNERSHIPS FanDuel (16): Baltimore Ravens, Buffalo Bills, Chicago Bears, Cincinnati Bengals, Cleveland Browns, Detroit Lions, Green Bay Packers, Houston Texans, Indianapolis Colts, Jacksonville Jaguars, New York Jets, Philadelphia Eagles, San Diego Chargers, St. Louis Rams, Tampa Bay Buccaneers, Washington Redskins DraftKings (12): Atlanta Falcons, Carolina Panthers, Dallas Cowboys, Denver Broncos, Kansas City Chiefs, Miami Dolphins, Minnesota Vikings, New England Patriots, New York Giants, Oakland Raiders, Pittsburgh Steelers, Tennessee Titans NBA PARTNERSHIPS FanDuel (13): Atlanta Hawks, Brooklyn Nets, Charlotte Hornets, Chicago Bulls, Cleveland Cavaliers, Dallas Mavericks, Detroit Pistons, Indiana Pacers, Memphis Grizzlies, Miami Heat, Milwaukee Bucks, Orlando Magic, Utah Jazz DraftKings (8): Boston Celtics, Golden State Warriors, Houston Rockets, Los Angeles Clippers, Minnesota Timberwolves, New York Knicks, Philadelphia 76ers, Sacramento Kings MAJOR LEAGUE BASEBALL DraftKings, thanks to its exclusive deal with MLB, has partnerships with 27 of the 30 big-league teams. The company isn’t partnered with the Arizona Diamondbacks and Seattle Mariners because daily fantasy sports violates laws in those jurisdictions. The Toronto Blue Jays also aren’t affiliated with DraftKings. NOTABLE INVESTORS FanDuel: NBA, Google Capital, Time Warner Investment, Turner Sports, NB Sports Ventures, Comcast Ventures, several NFL and NBA owners DraftKings: Major League Baseball, NHL, Major League Soccer, Fox Sports, Madison Square Garden SOURCES: FanDuel, DraftKings, Sports Business Journal, legalsportsreport.com
proven that people who play fantasy sports, especially daily fantasy, follow the NFL more closely.” With that in mind, the second phase of FirstEnergy Stadium renovations included the addition of the Lake Club on the north end of the facility. The spot includes the FanDuel Fantasy Lounge, featuring 43 TVs — “big TVs, in one small area,” Scheiner said — that the Browns view as a unique way “to activate and promote to people who are really interested in daily fantasy.” Scheiner said the multiyear partnership is “a substantial” one. The deal includes stadium signage, advertising, and such promotions as the FanDuel booth that was present during the team’s training camp in Berea and the fantasy football draft party that was held in a stadium suite on Aug. 31. Browns senior media broadcaster Nathan Zegura touts his FanDuel league to his 61,700 Twitter followers. The former CBS Sports fantasy football analyst said he also has an independent contract with FanDuel that calls for him to write weekly articles.
“Cleveland is such a hard-core sports town,” Eccles said. “Having both the Cavs and Browns is very important to us. It’s a town where sports matter.”
Fly On Your Schedule. And Our Reputation.
Fitting into the ‘bigger picture’ The Cavs and FanDuel first struck a deal in January, but the partnership is significantly larger for the 2015-16 season. The increased FanDuel signage at The Q is located in many of the prime “TV visibility spots,” Cavs senior vice president and chief revenue officer Brad Sims said. FanDuel also has purchased ads for Cavs broadcasts on Fox Sports Ohio and the team’s radio network, and the company’s promos will be featured on all of the Cavs’ digital properties. The game broadcasts will include a FanDuel Fantasy Minute with advice for fantasy NBA players, and there will be plenty of FanDuel promo codes given out on TV and at The Q. “FanDuel was very upfront that they want to see results from their partnership,” Sims said. “They are doing it in a way that is trackable and measurable, and they do it in a way that they start to see a return on their investment.” The Cavs’ chief revenue officer said there are two “main goals” for the partnership — “awareness and actually turning that into signups and players on their site.” Kerry Bubolz, the Cavs’ president of business operations, said the most intriguing aspect of daily fantasy is “how it translates to the bigger picture” for sports teams. “If you think about the millennials out there that follow sports and how they interact with sports teams, and how they use digital content and social content to do that, those that play daily fantasy sports are consuming 40% more of that content,” Bubolz said. “As you think about our business, we have a vested interest to see more people participating in this game, because now they’re going to be more interested in consuming our content.” And while football is easily the most popular of the fantasy sports, Eccles believes basketball has the largest room for growth. The FanDuel co-founder said half of his company’s revenue comes from NFL games. The NBA is second at 30%. “It’s our fastest-growing sport, and it has a young demo,” Eccles said. That demographic is part of the reason the NBA is among the investors in FanDuel. The company reportedly has raised $363 million from the likes of Google Capital, Time Warner Investment, Turner Sports and Comcast. DraftKings has racked up $426 million in its investment rounds, with Major League Baseball, the NHL, Major League Soccer, Fox Sports and Madison Square Garden among its most notable backers. Both companies have been valued at more than $1 billion. The partnerships the daily fantasy sports operators have established with the pro teams and leagues are crucial to their continued growth, Eccles said. “We’ve noticed people are more aware of FanDuel if they’re fans of that team,” he said. “They’re more inclined to buy (into the pay-forplay leagues) if we’re an official partner.”
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Announcing Coldwell Banker Hunter Realty Hires Felicia Hengle as New Senior Vice President for Northeast Ohio Beachwood, OH, August 2015 - Coldwell Banker Hunter Realty, a division of Coldwell Banker Schmidt Family of Companies (CBSFOC), OHZOPYLK-LSPJPH/LUNSLHZ:LUPVY=PJL7YLZPKLU[[VV]LYZLL[OLVWLYH[PVUVMP[ZVMÄJLZ in Northeast Ohio. Previously a Team Leader/CEO with Keller Williams Greater Cleveland Southwest in Strongsville, Ohio, Ms. Hengle brings a broad background in real estate and leadership, coaching agents and teams to achieve success at the highest levels. “I’m very familiar with Hunter Realty,” she said, “I was a Relocation specialist at Hunter from 1998 to 2011, in the top 5% of the agent body in volume and GCI and also mentored new agents and spoke at company functions on how to grow and increase business.” Felicia has a wealth of experience in managing and motivating people to new heights. In her most recent role as CEO for Keller Williams, she grew her location from 109 agents to 190 agents, increased closed vol\TLI` HUKPUJYLHZLKWYVÄ[WLYHNLU[I`
Each office is independently owned and operated.
“Learn About Schmidt Family Of Companies” GO TO www.schmidtfamilyofcompanies.com
CRAIN’S CLEVELAND BUSINESS
SEPTEMBER 21 - 27, 2015
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 documents were filed in the Recorder’s Office.
LIENS FILED — JULY Flash Expedited Delivery Ltd. 6465 Eastland Road, Brook Park Date filed: July 11, 2015 Type: Employer’s withholding Amount: $7,939 Packaging Machinery Services Inc. 17877 Saint Clair Ave., Cleveland Date filed: July 11, 2015 Type: Employer’s withholding Amount: $7,515 Enhydro Sewer and Drain LLC 1047 Oakes Road, Broadview Heights Date filed: July 11, 2015 Type: Employer’s withholding Amount: $6,916 Inunison Ltd. 27899 Clemens Road, Westlake Date filed: July 20, 2015 Type: Employer’s withholding Amount: $6,879 Special Transport & Rigging Inc. 4730 Warner Road, Garfield Heights Date filed: July 20, 2015 Type: Failure to file complete return Amount: $6,786 Agresta Landscaping Inc. 11424 W. 130 St., Strongsville Date filed: July 20, 2015 Type: Employer’s withholding Amount: $6,579 Greene Arches 4962 Inc. 22801 Emery Road, Cleveland Date filed: July 11, 2015 Type: Employer’s withholding Amount: $6,013 McKnight & Associates Ltd. 812 Huron Road, E., Suite 421, Cleveland Date filed: July 20, 2015 Type: Employer’s withholding Amount: $5,858 R & R Mechanical Inc. 3519 E. 75 St., Cleveland Date filed: July 11, 2015 Type: Employer’s withholding Amount: $5,784 Flash Expedited Delivery Ltd. 6465 Eastland Road, Brook Park Date filed: July 20, 2015 Type: Employer’s withholding Amount: $5,757 Little Hands Daycare 1 Inc. 763 E. 152 St., Cleveland Date filed: July 6, 2015 Type: Employer’s withholding Amount: $5,077 Bradley Construction Inc. 9226 Saint Clair Ave., Cleveland Date filed: July 11, 2015 Type: Failure to file complete return Amount: $5,030
LIENS RELEASED — JULY Academy Music Co. 1443 Warrensville Center Road, Cleveland Heights Date filed: April 11, 2016 Date released: July 11, 2015 Type: Employer’s withholding, unemployment, corporate income Amount: $16,477
B B O Inc. T/A Bucci’s Brick Oven 13373 Smith Road, Middleburg Heights Date filed: Aug. 12, 2009 Date released: July 20, 2015 Type: Employer’s withholding Amount: $17,537 Bedford Heights Day Care and Nursery Center Inc. 21881 Libby Road, Bedford Heights Date filed: June 15, 2010 Date released: July 20, 2015 Type: Employer’s withholding Amount: $6,407
LIENS FILED — SEPT. Cosmos Industrial Services Inc. 9103 Detroit Ave., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $938,050 Greenes Automotive Service Inc. 578 S. Green Road, South Euclid Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $219,014
Blues to You Inc. 812 Huron Road E., Cleveland Date filed: April 9, 2007 Date released: July 11, 2015 Type: Employer’s withholding Amount: $11,275
Greenes Automotive Service Inc. 578 S. Green Road, South Euclid Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $215,272
Ed Pawlak & Sons Florists Inc. 5264 State Road, Parma Date filed: Feb. 23, 2011 Date released: July 11,2015 Type: Employer’s withholding Amount: $43,581
Lago Flats LLC 1091 W. 10 St., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $198,334
Green Inspiration Academy 4265 Northfield Road, Highland Hills Date filed: Feb. 5, 2015 Date released: July 11,2015 Type: Employer’s withholding, return of organization exempt from income tax Amount: $28,960 Lawrence Harris Construction Inc. 2410 Scranton Road, Cleveland Date filed: Oct. 25, 2005 Date released: June 12, 2015 Type: Employer’s withholding, unemployment Amount: $22,066 Mellon Ridge Inc. 25000 Country Club Blvd., Suite 255, North Olmsted Date filed: Nov. 2, 2009 Date released: July 20, 2015 Type: Employer’s withholding Amount: $216,992 New Management Inc. 12800 Shaker Blvd., Cleveland Date filed: Aug. 10, 2010 Date released: July 11, 2015 Type: Employer’s withholding, unemployment Amount: $13,268 Open Pitt-Bar-B-Que Inc. 12335 Saint Clair Ave., Cleveland Date filed: Dec. 2, 2009 Date released: July 20, 2015 Type: Employer’s withholding Amount: $7,686 Pinnacle Auto Transport LLC 3681 Green Road, Suite 306, Beachwood Date filed: Dec. 30, 2014 Date released: July 11, 2015 Type: Employer’s withholding Amount: $21,536 Progressive Steam Inc. 1588 E. 40 St., Cleveland Date filed: Feb. 28, 2013 Date released: July 20, 2015 Type: Employer’s withholding Amount: $9,213 Regina Hill M.C., Inc. 27991 Center Ridge Road, Westlake Date filed: Oct. 30, 2015 Date released: July 6, 2015 Type: Employer’s withholding Amount: $8,201 X L Excavating Inc. 12291 Eagle Nest Drive, North Royalton Date filed: July 21, 2011 Date released: July 6, 2015 Type: Employer’s annual federal tax return Amount: $14,143
Greenes Automotive Service Inc. 578 S. Green Road, South Euclid Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $155,122 1701 East 12th LLC Scorchers Downtown Cleveland 1701 E. 12 St., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment, partnership income Amount: $130,283 Greenes Automotive Service Inc. 578 S. Green Road, South Euclid Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $76,787 CB Software Systems Inc. 5152 Crofton Ave., Solon Date filed: Sept. 3, 2015 Type: Corporate income Amount: $68,323 Seamus Marotta Corp. Marottas Pizza 2289 Lee Road, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $67,130 William E Crowe M.D. Inc. 6681 Ridge Road, Suite 204, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $62,390 Savor Inc. Sweet Melissas 19337 Detroit Road, Rocky River Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $57,991 1701 E. 12th LLC Scorchers Downtown Cleveland 1701 E. 12 St., Cleveland Date filed: Sept. 8, 2015 Type: Employer’s withholding, unemployment Amount: $53,936 Savor SH Inc. 20630 John Carroll Blvd., University Heights Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $52,170 Mobil Martin Inc. 1279 W. 73 St., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $52,074
Task Force I 1812 North Ave., Parma Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $42,101 Dry Cleaning and Laundry Wholesale Inc. 13225 Lakewood Heights Blvd., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $40,214
Head Builders Inc. 15293 Sandalhaven Drive, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $24,915 Al-Amary Inc. Dairy Mart 5-5824 12395 McCracken Road, Garfield Heights Date filed: Sept. 3, 2015 Type: Corporate income Amount: $21,964
A Cultural Exchange Inc. 12624 Larchmere Blvd., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, return of organization exempt from income tax Amount: $40,212
Graves & Horton LLC 1111 Superior Ave. E, Suite 1200, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, partnership income Amount: $21,763
Hitchcock Center for Women Inc. 1227 Ansel Road, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $35,509
American Lithuanian Citizens Club 877 E. 185 St., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $21,375
Three B Manufacturing LLC 9761 York Alpha Drive, North Royalton Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $31,730
10919 Kinsman Inc. Strictly Dollar Store Number 1 10919 Kinsman Road, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, f ailure to file complete return Amount: $19,134
High Performance Servo LLC 1477 W. Crossings Place, Westlake Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $31,492
Avon Pizza LLC Coleones Pizza & Subs 1260 Smith Court, Rocky River Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $18,989
C & D Truck & Equipment Service Inc. 4015 Jennings Road, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $30,750
Task Force I 1812 North Ave., Parma Date filed: Sept. 3, 2015 Type: Unemployment Amount: $18,785
Berea Glass Co. Inc. P.O. Box 161, Berea Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $30,611 KWIR Publications Inc. Gay Peoples Chronicle P.O. Box 391464, Solon Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment, corporate income Amount: $29,740 Nick Mayer Lincoln Mercury Inc. 24400 Center Ridge Road, Westlake Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $29,444 C & D Truck & Equipment Service Inc. 4015 Jennings Road, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $29,382 Renato 6 Ltd. LLC 1620 Leonard St., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $28,603 Natural Healing International Inc. 2011 Bradley Road, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $28,422 Buckeye Gear Co. 5130 Richmond Road, Bedford Heights Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $25,760
Westpark Asphalt Maintenance Inc. 2084 Elbur Ave., Lakewood Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $17,502 LC Petro Service LLC 2180 Brown Road, Lakewood Date filed: Sept. 3, 2015 Type: Employer’s withholding Amount: $15,668 Hargur Inc. Turney Deli 4525 Turney Road, Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $15,603 Kenton Industries Ltd. 1455 E. 185 St., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $15,501 Plantrex an Interior Landscaping Co. 30628 Detroit Road, Suite 196, Westlake Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment, failure to file complete return, corporate income Amount: $15,066 Weems School LLC 2280 Professor Ave., Cleveland Date filed: Sept. 3, 2015 Type: Failure to file complete return Amount: $14,311 Aetna Welding Co. 4613 Broadway Ave., Cleveland Date filed: Sept. 3, 2015 Type: Employer’s withholding, unemployment Amount: $13,853
THE FASTEST OF 2015 Listed in Alphabetical Order
THANK YOU TO OUR SPONSORS
• ACU-Serve Corporation
• Lighthouse Insurance Group, LLC
• Alliance Solutions Group
• Magnus International Group
• Alpha/AXS Holding Company, LLC
• Ohio Real Title Agency, LLC
• Amsdell Companies
• Olympics Forest Products Company
• Bellwether Enterprise
• One Source Technology
• Bravo Wellness
• Paragon Consulting
• Bright Ideas Press, LLC
• Budget Dumpster, LLC
• Perfect Power Wash
• Carver Financial Services
• Proactive Controls Group, LLC
• Checkpoint Surgical
• RCF Group
• Christian Healthcare Ministries, Inc.
• RDL Architects, Inc.
• Content Marketing Institute
• Recess Creative, LLC
• Cornerstone IT, Inc.
• SC Fastening Systems, LLC
• Corrigan Krause CPAs
• SecureData 365
• Direct Recruiters, Inc.
• Selman & Company
• ExactCare Pharmacy
• Skoda Minotti
• Exscape Designs
• StreamLink Software
• Suburban Manufacturing Company, Inc.
• Foundation Software
• The Millcraft Paper Company
• General Commercial Corporation
• The SpyGlass Group, LLC
• ThenDesign Architecture, Ltd.
• Thunder Tech, Inc.
• Jakprints, Inc.
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• Wireless Environment
• Keller Williams Realty of Greater Cleveland • World Synergy • KHM Consulting, Inc.
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HEADQUARTERS continued from page 1
Hospitality Restaurants, the Blue Point’s parent, to take over the Warehouse District restaurant for the week.
A hub of activity “We were looking for a hub, one place we could do our events for the entire week,” said Johanna Derlega, senior vice president of advertising and National Journal LIVE, the organization’s events unit. “We love having people, convention-goers, come into our hub. People do not have to pay to get into the hub. We fund the hub and the events through underwriters.” Chris Oppewall, Hospitality Restaurant’s managing partner and director of operations, said the company had some concerns about turning its restaurant over for special events, but now is eager to show it off during convention week. “It’s incredibly exciting,” Oppewall said. “If there was any trepidation on our part, it was that putting together something like this is not something we usually do for Blue Point, it’s not a matter of everyday business. Certainly it’s going to be a good week for us.” Regular operations at Blue Point will be suspended for six days start-
ing Sunday, July 17, the day before the convention formally starts, to accommodate a transformation of the restaurant into an informal event space with two lounges. On Friday, July 22, the space will be restored for normal operations after the closing event Thursday evening. The week will be an opportunity for National Journal, whose audience tends to be Washingtonbased, to get its name and new direction out to political and policy leaders around the country. The organization announced earlier this year that it would suspend publication of its print weekly, National Journal, at year’s end to focus on its National Journal Daily and its digital offerings. The focus of those media includes the White House, Congress, energy, health care, defense and technology. A typical convention week breakfast program — Derlega called them morning briefings — might feature a panel of political operatives and people who have worked for the candidate to talk about how the candidate might govern. A lunch-time briefing, she said, might look at a plank in the party’s platform that was scheduled to be aired at that day’s convention session. Evening events would be smaller, invitation-only networking recep-
tions and dinners. National Journal has been doing political convention events since 2008 and, because of sponsorships, they have become a profit center. “It’s a robust part of our operation, and it’s growing,” Derlega said. “Every presidential election year, we’re able to follow the (political) story to the convention cities and bring these conversations not only to Washington opinion leaders who have moved over to the convention city for the week but also delegates and operatives and people on the ground in, for instance, Cleveland.” Upcoming events in Washington on the aviation industry and health care are being sponsored, respectively, by Airlines for America, a trade association for airlines, and CVS Health, the drugstore chain.
Exploring space Other venue operators say event planners and space brokers have been looking at their spaces, but they have agreed to wait for the Republican National Committee’s committee on arrangements to run the matchmaking. It’s expected that settings within walking distance of Quicken Loans Arena, with dramatic views of the lake and the downtown skyline, will be the first
venues to be locked down. Places like the Great Lakes Science Center. Sue Allen, the center’s vice president of marketing, communication and sales, said several people, whom she described as space brokers, had been looking over the building and grounds. The museum has a variety of attractive spaces — including its 500-seat OmniMax Theater and the William G. Mather steamship — that it would be willing to close during the convention week if someone wanted the exhibit space. The center, she said, could accommodate as many as 5,000 people. “We’re really hoping our location and the fact you have amazing views of Lake Erie and views of the city skyline” will attract an event promoter, Allen said. “During the debate, (cable news network) CNN staged interviews on the top of our garage to get views of the lake and the city skyline.” The opportunity to lease out a venue for all or part of the convention’s run and the likelihood that locals will be staying home or leaving town that week has operators of several restaurant and entertainment venues welcoming the opportunity to get the convention’s business, even if it means closing to the public. The science center already is
planning to move its summer camp to a location outside of downtown for the week. “We’ve pretty much blocked off that whole week,” said Julie Anderson, deputy director of business operations and marketing at the Museum of Contemporary Art Cleveland in University Circle. “A few of the folks who have come and taken a look see MOCA as a young, hip kind of space.” Jonathan Gross, chief operating office of the Red Restaurant Group, expects his Prospect Avenue restaurant will be taken over for the entire convention week by one or more of the corporations that he’s been talking to. “We do have commitments from some large corporations,” Gross said. “We will probably have private events every possible minute of the day for all of those (convention) days, except for the actual convention hours (in the early evening).” Mike Miller, vice president of the Music Box Supper Club in the Flats, said he’s holding the week open until the matchmaking begins. “I think Northeast Ohioans will avoid coming downtown that week,” he said. “The (convention), and all the events around that, will be a primary source of revenue that week.”
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SEPTEMBER 21 - 27, 2015
THE WEEK SEPTEMBER 14 - 20 The big story: Doubling down on downtown Cleveland, Hertz Investment Group of Santa Monica, Calif., acquired Skylight Office Tower for $35.4 million from Forest City Enterprises, just five months after buying Fifth Third Center for $53.4 million. Cleveland-based Forest City said it expects to generate net proceeds after commissions and closing costs of about $34.2 million. David LaRue, Forest City CEO, said the company’s work is not done, as it continues to shed what it has designated as non-core assets as it refocuses on its strongest markets as part of an effort to become a real estate investment trust. “We’re pleased to complete this disposition and we remain focused on closing other targeted non-core asset dispositions,” LaRue said.
A sense of urgency: The MetroHealth System plans to take over two urgent care centers in Cleveland Heights and Parma now operated by HealthSpan — the former Kaiser Permanente operation — and transform the sites into freestanding emergency departments. Under terms of the agreement, which still requires regulatory approval, HealthSpan will at some point cease urgent care services at its locations at 10 Severance Circle in Cleveland Heights and 12301 Snow Road in Parma. The spaces then will be leased to MetroHealth, which plans to offer emergency services starting early next year. HealthSpan will continue to offer its other services at the facilities. Network news:
French building materials firm Saint-Gobain agreed to sell its Hudsonbased U.S. distribution business, Norandex Building Materials, to ABC Supply Co. of Beloit, Wis., a distributor of roofing and siding products. Terms were not disclosed. The transaction, subject to regulatory approvals, is expected to close in the fourth quarter. Norandex has a 103-branch network in 31 states that distributes windows, doors, siding and roofing products. It has 770 employees and generated sales of $393 million in 2014.
For the health of it: Summa Health System plans to make a “significant multi-million dollar investment” to its hospital in Barberton, though it plans to shift the hospital’s inpatient behavioral health unit and its open-heart procedures to elsewhere in the health system. Summa would not disclose the exact scope of the investments but said it will play into its vision for “population health management” and feature investments in women’s health, cardiac, oncology and orthopedic programs, as well as expanded outpatient services.
Not since 2001 …: Ohio’s unemployment rate fell to a 14-year low of 4.7% in August from 5% in July as the state added 14,600 jobs for the month. The state reported that nonfarm wage and salary employment rose to 5,411,100 last month from a revised 5,396,500 in July. The number of workers unemployed in Ohio in August was 265,000, down 21,000 from 286,000 in July, according to state data. In August 2014, Ohio’s unemployment rate was 5.4%.
Yo!: Cleveland has had its ups and downs over the years, and now, appropriately enough, it will host a global yo-yo event. The Greater Cleveland Sports Commission announced the 2016 World Yo-Yo Contest will take place next Aug. 3-6 at the Renaissance Cleveland Hotel. The event is expected to bring about $1.5 million to the regional economy. In recent years, the event has been held in Tokyo, Orlando and Prague. The 2016 contest will feature more than 1,000 competitors from more than 30 countries. See editorial cartoon, Page 10
CRAIN’S CLEVELAND BUSINESS
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Their approach is hardly by the book
it, but also as fundamentally positive and full of choices.” — Timothy Magaw
The Cleveland Foundation and Great Britain’s Paul Hamlyn Foundation have commissioned a new book designed to highlight the creative work of both foundations around helping arts organization attract and retain new audiences. The book — “Imagining Arts Organizations for New Audiences” — was written by Annabel Jackson, a well-regarded arts consultant, and recently was released online as a free download. It highlights 14 case studies of innovative audience development approaches funded by both foundations in their communities. In particular, the book highlights the Cleveland Foundation’s “Engaging the Future” initiative, which ran from July 2011 through September 2014. As part of that program, the Cleveland Foundation supplied funding and mentorship to the Cleveland Museum of Art, the Cleveland Orchestra, Cleveland Public Theatre, DANCECleveland, GroundWorks, Great Lakes Theater and the Museum of Contemporary Art Cleveland to experiment with new audience development efforts. For instance, the foundation’s funding helped Cleveland Public Theatre launch an outreach program for specific cultural communities. The effort gave rise to Teatro Publico de Cleveland, which cultivated actors from Cleveland’s Latino community. “This book is not intended to be prescriptive. It is a source of ideas and practical principles, not of rules,” Jackson wrote in the book’s forward. “I see new audience development as urgent, as others have described
Continental Divide ride brings people together Norm Wengerd is on the ride of a lifetime — for a good cause. The CEO of GentleBrook, a nonprofit that offers programs and services in Coshocton and Stark counties for people with intellectual and de- Wengerd velopmental disabilities, is in the middle of the “Beyond the Divide” bicycle ride to raise awareness and money for the organization. Wengerd’s ride started earlier this month in Banff, Canada, and eventually will take him 2,800 miles across the Continental Divide through the spine of the Rockies and into New Mexico. Dianna Huckestein, a spokeswoman for GentleBrook, said Wengerd expects to complete the ride next month. He’s riding with a group of about 25 other people as part of a trip organized by Adventure Cycling, Huckestein said. The CEO checks in “one or two times a week, depending on the location,” she said, and the organization posts periodic updates and pictures at www.gentlebrook.org/blog. Wengerd is a longtime adventure-seeker and biking enthusiast, Huckestein said. But the benefits of the trip extend beyond the personal. Through sponsorship packages that range from $100 per mile up to $30,000
BEST OF THE BLOGS
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Excerpts from recent blog entries on CrainsCleveland.com.
PRODUCT: IMS ResQ Cart
Hope there’s not bad blood
The company, which supplies injection molding and industrial products to a variety of industries, says its latest product is aimed specifically at the industrial plastic molding industry. IMS says the IMS ResQ Cart is “designed to be a plastic processor’s go-to tool cart” and is “constructed with a practical layout including many industrybased features to promote worksite efficiency as well as ease of use.” It’s built with heavy-duty steel, 5-inch swivel/locking casters and a work table with a holding capacity of 350 pounds, the company says. The IMS ResQ Cart is designed as a four-layered shelving system with high side walls and rubber-coated surfaces to keep tools and parts in place. It “facilitates access and storage of critical components needed to fix, plumb, set up or switch a run,” the company says. Each shelf is large enough to hold molding tools and parts, with additional space for items such as bulk containers, testing equipment, or press-specific toolboxes, according to IMS. IMS says ResQ Cart’s aim is to “save shops time and effort when switching out molds, fixing a press or generally servicing a unit.” For information, visit www.imscompany.com/ResQ.
In one arena, at least, KeyCorp CEO Beth Mooney is a bigger hit than Taylor Swift. Fortune put Mooney at No. 48 on its 18th annual list of the most powerful women in business. There are 27 CEOs on the list, which normally has 50 names but this extends to 51 — the position for Swift, one of the world’s biggest pop stars. Here’s what the magazine had to say about the KeyCorp boss: “The first woman to lead one of the country’s top 20 banks, Mooney oversees assets of nearly $95 billion. She’s credited with helping KeyCorp survive the financial crisis and for increasing the stock price by more than 50% during her four-year tenure. Now she’s working to move KeyCorp ahead on technology, buying a tech-focused investment bank and partnering with Apple Pay and Hello Wallet.” No. 1 on the list was Mary Barra, CEO of General Motors.
Send information about new products to managing editor Scott Suttell at firstname.lastname@example.org.
Opportunity knocks Cleveland in recent years has shifted pretty dramatically in the direction of a knowledge economy, but it remains one of the better U.S. cities for people with less than a bachelor’s degree. The Wall Street Journal highlighted research from the Federal Reserve Banks of Philadelphia, Cleveland and Atlanta that “shows the wide geographical disparity for what they call ‘opportunity occupations’ — jobs that often pay better-than-median wages and don’t require a four-year degree.” The Fed banks used data from the U.S. Department of Labor and Burning Glass Technologies to quantify the opportunity occupations, which they defined as jobs paying at least $35,540 a year — the na-
for 300 miles (with more perks), the organization aims to raise $280,000 via Wengerd’s ride. So far, GentleBrook has raised about $65,000, Huckestein said. Funds will be used to help upgrade GentleBrook’s complex with features including walking trails and an intergenerational wellness and sports center. — Scott Suttell
A state-of-the-art effort on manufacturing training Ohio soon will take part in a multistate manufacturing apprenticeship program, thanks to some funding from the U.S. Department of Labor. Boston-based Jobs for the Future is one of the lead recipients of the American Apprenticeship grants, which were announced earlier this month. The group’s program will expand its Industrial Manufacturing Technician apprenticeship model into states including Ohio. The model, piloted under an earlier grant, prepares workers with the more advanced skills they need in today’s manufacturing jobs, said Maria Flynn, senior vice president of Jobs for the Future. Those skills include CNC machining and lean processing standards. This five-year program received $5.5 million from the Labor Department. In that time, Jobs for the Future and its partners aim to train 1,450 new apprentices in Ohio, Wisconsin, Minnesota, Indiana, Kentucky, Michigan, Pennsylvania and Illinois. Ohio’s portion of the program will be overseen by the Labor Institute for Training Inc. in Indiana. — Rachel Abbey McCafferty
tional median wage based on Occupational Employment Statistics data from 2014, adjusted for local variations. Cleveland-Elyria-Mentor was No. 7 nationwide for such occupations, which comprise 29.9% of the workforce. Louisville-Jefferson County, Ky.-Ind., was No. 1, at 32.1% The Journal noted that the number of opportunity occupations “shrank by 1.7 million nationwide between 2005 and 2014 even while total employment rose by 4.9 million, or to 27.4% of all jobs from 29.8%.”
Solid foundation The Cleveland Clinic Foundation earned a spot on Business Insider’s ranking of the 20 largest U.S. endowments and foundations. The ranking was based on gross assets as of the second quarter of 2014. Finance research and data site Graypools “compiled a list dominated by higher-education institutions and interspersed with health care funds, art-preservation societies, and financing cooperatives,” Business Insider says. The Clinic was No. 12 on the list, with assets of $10.22 billion. “In 2014, the foundation’s endowment consisted of 261 donor-restricted funds, meaning funds have specific purposes, for example, to finance education, research or health care,” Business Insider notes. “The foundation expects an average return rate of 7.5% annually,” it says. “Contributions and grants increased nearly 13% from 2012 to 2013, according to the foundation’s 990 filing — at $897.9 million. Program service revenue accounted for most of the foundation’s gross assets, with $3.2 billion.” Topping the ranking was the President and Fellows of Harvard College, a permanent endowment made up of about 12,000 funds. It has gross assets of more than $56 billion.
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