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RNC puts workers on tight deadline By JAY MILLER jmiller@crain.com
Lonnie Coleman is happy the Republican National Committee is bringing its 2016 presidential nominating convention to Cleveland. So he was all smiles when he said he will do whatever it takes to meet the tight, convention-related deadlines that he and other subcontractors working on the 600-room Hilton Downtown Cleveland hotel have been given to complete their work on what is expected to be a key center of convention activity. His firm is Coleman Spohn Corp., a mechanical contractor. The convention center hotel, owned by Cuyahoga County, is expected to open June 1, 2016, in time for the Republican conventioneers, who are expected to arrive in mid-July. But, said the smiling Coleman, “I have to be out by March 1, 2016. There’s a very, very big penalty if I miss it.” In conversations in every corner of downtown Cleveland, business people and public officials are talking about the convention — as well as the plans that are being accelerated or the perks that are being extended to make sure everything will run smoothly for the Republicans, whose convention still is 21 months or more away. Of course, this hospitality and generosity on the part of the Cleveland community aren’t expected to go unrewarded. The convention is bringing 40,000 people to town — convention-goers, party officials and media personnel — each of whom is likely to spend anywhere from $200 to $1,000 a day, money that will pump up the regional economy. County public works director Bonnie Teeuwen acknowledged to Crain’s Cleveland Business that the RNC expects that no major downtown construction or renovation work will get underway unless it can be completed by June 1, 2016. The RNC has not set the dates in stone yet, though the party appears to be leaning toward a July18-21, 2016, timeframe, rather
A LEAGUE DEFLATED How recent controversies and PR mishaps have altered NFL’s image By KEVIN KLEPS kkleps@crain.com
Barbara Paynter has a simple message for organizations that are involved in public relations quagmires. “Tell the truth. Tell it all,” said Paynter, a partner at Hennes Paynter Communications in Cleveland. “If you have done something wrong, admit it and figure out how to fix it.” Paynter believes the NFL has made plenty of mistakes with its handling of the domestic violence case involving Baltimore Ravens running back Ray Rice, and the subsequent controversy stemming from child abuse charges leveled against Minnesota Vikings star Adrian Peterson. Now, with the National Organization for Women calling for NFL commissioner Roger Goodell to resign and the league undergoing possibly the most tumultuous period in its history, the most powerful organization in professional sports has one of the worst types of controversies on its hands. The NFL has “a credibility problem,” Paynter said, and it starts with Goodell, the commissioner who was paid a combined $105 million from 2008 to 2012, including a $44 million salary in 2012, the most recent year in which the league’s financials were reported. “I think they have a real trust issue with their fans,” said Paynter, whose firm specializes in crisis communications, media training and media re-
lations. “As a consumer, you want to believe the franchise or the league is going to do the right thing. The perception is they seem to put the game and money ahead of personal safety.” The NFL — and pro sports, for that matter — has never been an all-saints club, but the recent controversies, which reached a boiling point when TMZ released a video from an Atlantic City elevator of Rice beating up his then-fiancée (and current wife), have resulted in some of the largest outcries the league has ever experienced. “The shield took a bunch of hits,” said ESPN Cleveland personality Jerod Cherry, who played nine seasons in the NFL and was a member of three Super Bowl championship teams in New England. “It was one of the worst weeks I’ve witnessed from a PR standpoint. It was bad news because you got the impression guys were not civil.”
‘Proof will be in the pudding’ Rice initially was suspended for two games in late July — more than five months after the assault of Janay Palmer. On Sept. 8, See NFL, page 6
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Ohio’s secondary airports have a significant economic impact on their communities, but the state of Ohio is not yet ready to increase state funding for runway maintenance, safety or other improvements at the perennially cashstrapped airports. After 18 months of study, the Ohio Department of Transportation recently released a draft of a study of the state’s 97 airfields used for business and general aviation. It’s begun a series of public meetings to gather more information and expects a final report in December. The Northeast Ohio meeting is set for Monday afternoon, Sept. 29, at the Brecksville Community Center. Corporate airport users and private pilots are watching the state study carefully. While they hope it will lead to increased funding, they are wary that the state might use its economic clout to pick winners and losers, leading, ultimately, to the closure of some airports. Terry Slaybaugh, president of the Ohio Aviation Association, an airport operator’s trade group that has been pushing for a state aviation capital program, said he doesn’t believe the study will directly lead to the closure of any airports. But he said the airports need help if they are going to survive. “One of the things the study is going to illustrate is there are huge capital needs at general aviation airports across the state,” said Slaybaugh, who is director of aviation for the city of Dayton, which operates the Dayton-Wright Brothers Airport in Miami Township, a gen-
eral aviation field, and the James M. Cox Dayton International Airport. “I hope that the study provides some insight to the state that possibly there is a greater role for them to play.” Closing an airport can be difficult. The Federal Aviation Administration sets safety and runway condition standards for airports and backs up those standards financially, though its airport improvement budget has been slashed in recent years. Nonetheless, if an airport closes, it must repay the FAA for any improvements it funded over the prior five years. In January 2013, ODOT initiated the “Ohio Airports Focus Study.” The plan was to examine the roles airports play in their communities and to catalog the improvements and their costs. The draft report released earlier this month highlighted the economic impact of the airports and documented airfield capital improvement needs but did not suggest what, if any, additional state money might be committed to the airports. “We’re still in the draft stage of the airport study,” said ODOT press secretary Steve Faulkner. “We hope this report will help guide policymakers and decisions when prioritizing airport improvements.” The draft study estimates that 17,500 jobs and $688 million in payroll and benefits can be tied to these airports. Adding in the economic value of on-airport business tenants and visitor spending and applying an economic impact multiplier, the study estimated the airports generate $1.8 billion in economic activity.
Airport users and operators believe those numbers show the airports are an important economic development tool. “We see Lost Nation as a regional asset,” said Mark Rantala, executive director of the Lake County Port and Economic Development Authority, which is taking over operation of Willoughby Lost Nation Airport on Sept. 30. “Someone can fly in from a plant in Omaha if they have a facility in Mentor or Willoughby and land at Lost Nation. That makes Lake County an attractive place to do business.” Last September ODOT held a first series of meetings around the state to hear what airport operators, general aviation pilots and other stakeholders saw as the highest priorities. Most speakers at a meeting in Brecksville spoke in favor of increased airport funding and against any closures. Jeffrey Gorman, president and CEO of Gorman-Rupp Co. in Mansfield, said his company pilot in 2012 made about 50 trips into Mansfield with customers. The firm’s airplane, he said, “is one of the most successful sales tools we’ve ever gotten.” Northeast Ohio airports included in the study are Ashtabula County Airport, Burke Lakefront Airport in Cleveland, Cuyahoga County Airport, Kent State University Airport, Lorain County Regional Airport, Portage County Airport and Willoughby Lost Nation Airport. Most of the state’s $3.1 billion transportation spending budgeted for 2015 is allocated to roads and bridges. Airport maintenance is budgeted at $2.8 million. The FAA typically requires a local See AIRPORT, page 5
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For local businessman Jay Patel, the key to success is simple. “You have to have passion,” said Patel, a native of India. “Once you have that, the rest falls into place.” Since coming to Cleveland in 2000 — about four years after immigrating to America via Pennsylvania — Patel, 32, has opened, managed and sold several businesses, including his own Indian restaurant, a Dunkin’ Donuts franchise and a couple state liquor agencies. Currently, Patel, a craft brewer himself, runs the Cap & Corks beer and wine supply store in Lakewood. “I just fell in love with this country and the opportunities you get,” he said. Patel’s latest business venture positions him as the leader of a hub of new MOOYAH Burgers, Fries & Shakes restaurants across Greater Cleveland as the diner makes its debut in Ohio early next year. The MOOYAH restaurant is currently under construction in Rocky River at 19815 Center Ridge Road, where the former Rockport Center has been replaced with a fresh development that includes a new apartment complex. The restaurant, a roughly $500,000 project, not only will be the first of its kind in Ohio when it opens in February, it also will be the flagship location in a series of the casual burger joints expected to open in the region in the next several years. Ardag Tachian, a Midwest development agent for MOOYAH, said the goal is to open between five to eight MOOYAH’s in the Cleveland market “in the next five years or so.” The company also is considering restaurants in Columbus, Cincinnati, Dayton and Toledo. The chain, founded in Dallas in 2007, currently has about 70 restaurants in 16 states. He said locations are being scouted for the
CONTRIBUTED PHOTO
The Cleveland market could have five to eight MOOYAH restaurants in the next five years. future restaurants in Greater Cleveland. Each location, like the first MOOYAH in Rocky River, is usually about 2,100 square feet in size and operates with around 30 employees. “We’ve been gaining a lot of recognition lately,” Tachian said. “A very popular and growing fast-casual segment in the restaurant industry is helping fuel our growth.” MOOYAH is comparable in style to a Five Guys restaurant, Patel said, but it differs by offering a dedicated kids menu, milkshakes and healthier cheeseburger alternatives including veggie and turkey burger options and a sandwich that replaces their baked-daily buns with iceberg lettuce. “We view metropolitan Cleveland and other areas in the Midwest as being reflective of the all-American
spirit,” Tachian said. “This is a very family-centric and focused brand, and I think it’s a very good match in terms of our concept and the folks in (the Cleveland) area.” Patel is equally optimistic about the business’ outlook. As a resident for nearly 15 years, he asserts Cleveland is “on the upswing,” which could bode well for the new businesses. Patel, a 2004 grad of Cleveland State University, lives in Cleveland with his wife, Amee, and 4-year-old daughter, Aarna. He said he has always yearned to be a businessman and got into the sale of food and drink by marrying his entrepreneurial spirit with his love of regaling company. “I just love to entertain people,” he said, “and those are things you need to have a good time.”
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Elyria and Cleveland latest affected by PNC closings By JEREMY NOBILE jnobile@crain.com
JOIN US AS WE CELEBRATE OUR 40 TH ANNIVERSARY AND OUR CAMPUS EXPANSION. ³ Dedication of the NEOMED Education and Wellness (NEW) Center Sept. 29, 10:30 a.m. ³ Community Open House for the NEW Center Oct. 4, 10 a.m. to 2 p.m. For more information visit www.neomed.edu/40.
PNC Bank is closing two more branches in the Cleveland area as customers increasingly choose mobile and online banking options and demand for in-person services fades. PNC’s branch at 341 Broad St. in Elyria was scheduled to close last Friday, Sept. 19. Customers of that location will be referred to a branch about 1.3 miles away at 126 Second St. in Elyria. Meanwhile, Cleveland’s PNC branch at 11500 Clifton Blvd. will close on Nov. 21. Those customers will be referred to a branch about 1.5 miles away at 10900 Lorain Ave. PNC spokeswoman Marcey Zwiebel said the ongoing closures are the result of customer trends in
the banking industry and the company’s own internal research. The result is consolidated and streamlined operations structured around customers’ preferences for electronic banking methods. “Increasingly, customers are using mobile and online channels as well as ATMs for the majority of their basic banking transactions,” she said. The closures mark the second and third for PNC in Cleveland this year. A Euclid branch was shut down in February. Those three closures are among the 55 total branches PNC intends to consolidate this year countrywide. The Pittsburgh-based bank closed 200 branches in 2013, Zwiebel said, including five in the Cleveland area and a sixth in Norwalk.
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PNC currently has about 2,700 branches in 19 states and Washington, D.C., with 81 of those in Greater Cleveland. Zwiebel declined to comment on how many employees work at PNC’s branches or what happens to them when a branch closes, but noted “we do our very best to place employees impacted by the closures.” Some of the branches are leased by PNC, but those owned by the company will be put up for sale. Zwiebel also declined to comment on how much money closing a branch could save and how many additional closures may come in the future. However, she said customers are notified of any closure 90 days before it happens. “We really don’t speculate about future potential closures,” Zwiebel said.
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GE Lighting sees opportunities to shine By CHUCK SODER csoder@crain.com
Seeing the light GE Lighting — which will still be led by its current CEO, Maryrose Sylvester — is certainly going in some futuristic directions. Soon, for instance, it aims to use light to send signals to smart phones. The technology, developed by a Bostonbased startup called ByteLight, could “fundamentally change the way people shop” Duffy said. GE Lighting set up a fake retail store at a trade show in June to give retailers a sense of
CONTRIBUTED PHOTO
Maybe GE Lighting won’t be sold after all. The unit soon will start reporting to the General Electric team that invests in startups and tries to push GE in new, high-tech directions. The move suggests that GE thinks its lighting unit can come up with bright ideas that don’t take the form of light bulbs. And that’s good news for those who don’t want the company to sell GE Lighting, according to Terry McGowan, director of engineering for the American Lighting Association. “They’re thinking very seriously about what this lighting business can do and the growth that’s occurring,” said McGowan, a retired GE Lighting employee who lives in Cleveland Heights. Some stock analysts have predicted that GE will sell the East Cleveland-based unit, which commercialized Thomas Edison’s light bulb. After all, GE said on Sept. 8 that it will sell its appliances unit — which shares a profit-andloss statement with GE Lighting — to Electrolux of Sweden for $3.3 billion. The appliances unit is a relatively small, low-margin business for GE, as is GE Lighting. Plus, appliances didn’t fit within GE’s “portfolio of infrastructure businesses,” GE CEO Jeff Immelt said in a news release. The same could be said about GE Lighting if it were only focused on creating better light bulbs. Now, however, the unit is coming up with all sorts of ways to use the billions of light sockets that cover the developed world — which could help GE Lighting become more of a high-tech infrastructure company. Those efforts should remain a high priority as GE Lighting starts reporting to the company’s growth and innovation team: The executive in charge of that group is a strong supporter of the lighting unit’s efforts to broaden its focus, according to Jerry Duffy, general manager of global product management for GE Lighting. The growth and innovation team is led by chief marketing officer Beth Comstock, who didn’t mince words earlier this month, when she told news outlets that “GE Lighting is not for sale.” “She’s been a huge champion of what we’re doing and where we’re going,” Duffy said.
lighting industry website called the EdisonReport. People the writer spoke to at the recent lighting conference said that “reporting to Comstock is a very good thing for Lighting as she is considered a rising star at GE.” GE Lighting got another nod from its parent company last week: Jaime Irick, who leads GE’s professional solutions business for the United States and Canada, was one of three GE executives promoted to vice president positions. At GE, vice presidents “lead large revenue-generating businesses or are in critical technology or functional roles, helping to drive growth,” according to a release announcing the promotions. Business customers account for 70% of GE Lighting’s revenue. A large majority of customers will switch to LEDs over time: Irick cited a GE report saying that 70% of the lighting industry’s revenue will come from LEDs by 2020. That figure stood at 18% in 2012. It’s probably higher today, given that the federal government has banned most traditional incandescent bulbs because they are less energy efficient.
LEDs in the lead GE Lighting aims to use light to send signals to smart phones.
how the system works: The ByteLight software gives light fixtures that use LEDs (lightemitting diodes) the ability to flicker so fast that the human eye doesn’t notice. But the light sensors built into today’s smart phones can pick up the flashes and interpret the patterns as if it were reading high-speed Morse code. Retailers are already showing interest in the technology, which could be used to send people promotions based on what they typically buy or help them find items in the store, Duffy said. The same technology could eventually be used in hospitals, he said. “Nurses spend a heck of a lot of time looking for different pieces of equipment,” he said. LEDs are essentially computer chips that emit light. And those chips make them extremely flexible. GE Lighting already is selling LEDs that can be controlled and monitored via the Internet. At Home Depot, you can buy GE-brand LEDs that can be controlled through a smart phone app called Wink, which was developed by a New York City-based company called Quirky. The city of San Diego is doing the same thing with its downtown street lights. GE in January announced that the city would become the first in the nation to install the company’s LightGrid system.
match of 10% of the cost of any work it requires. For most of the state’s corporate and general aviation airports, that match can be hard to find. Revenue from landing fees, rental of hangar space and the sale of aviation fuel might cover day-to-day operating costs, but the airports typically rely on a public agency to cover any operating losses or large maintenance expenses. Cuyahoga County Airport, one of the busier general aviation airports, has a 2015 budget of $1.5 million. Because of a revenue shortfall, the county general fund includes a $575,000 subsidy for the airport.
It’s not just what they know … GE Lighting also is exploring ways to use different types of light to improve people’s mood and health, another reason it might be a good fit for GE’s growth and innovation unit. If you’ve seen any GE ads over the past few years, you might’ve noticed that the company is trying to cast itself as a leader in developing products that are a) connected to the Internet, b) environmentally friendly and c) promote good health. The growth and innovation team is in charge of GE’s “industrial Internet,” “ecomagination” and “healthymagination” initiatives. Being part of that team could signal that GE Lighting is important to the company, especially since it’s led by Beth Comstock, according to an article published last week on a
GET DAILY NEWS ALERTS FROM CRAIN’S
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But eventually the system will let cities do much more than control when lights turn on and off, and how bright they shine. The company could adapt the lights so that they could spot empty parking spaces — and help people find them. Or maybe it could add sensors that measure how much pollution is in the air. “I never thought I would be in the environmental sensing and monitoring business,” Duffy said.
GE Lighting has had success competing for customers looking to swap out older bulbs with LEDs or other more efficient products, such as GE’s soft white halogen bulbs, according to Irick and John Strainic, general manager of North American consumer lighting. One challenge: Some LEDs last 25 times longer than incandescent bulbs. So after consumers make the switch, what will the lighting unit do once they no longer need to replace so many burned out bulbs? Given that LEDs can do so much, GE Lighting is hoping to bring customers back with new technological capabilities, Strainic said. “Lighting is not a commodity anymore,” he said. Nick Heymann, a stock analyst for William Blair & Co., said it’s “certainly a possibility” that GE could keep its lighting unit, but he thinks it’s more likely that the company will sell it. He cited its relatively low profit margins — 4.6% in 2013 for the entire appliance and lighting division, compared to 15.7% for all of GE’s industrial businesses — and the future challenge of getting customers to buy replacements. Although GE Lighting is working to become more of an infrastructure company, Heymann said it will be hard for the lighting business to grow in emerging markets — places that don’t have Home Depots. “How do you sell lighting in non-developed countries?” he said. However, McGowan, of the American Lighting Association, said there’s a lot of opportunity to capitalize on all the light sockets that already exist in every room of every building in the developed world. “To get the control of those individual lights is a big deal,” he said. “The company that makes that work I think is going to win.”
REGISTER FOR FREE E-MAIL ALERTS AND RECEIVE: In Cleveland, Mayor Frank Jackson has insisted he won’t consider closing money-losing Burke, despite pleas that the land should be used for development. Willoughby Lost Nation Airport was sold by Willoughby to the county’s port authority in part because it had been losing about $200,000 a year. ODOT puts Lost Nation’s economic impact at $9.4 million, derived from the 35 jobs and $1 million in payroll at the airport. However, the study estimates the airport’s capital needs at $19.1 million over the next 20 years, including $8.4 million in runway upkeep and $10.7 million for desirable improvements such as a runway lighting system and an additional taxiway or second landing strip.
THE MORNING ROUNDUP: The day’s business news from Ohio’s daily papers
DEALMAKER ALERT: A weekly guide on M&A trends and recent transactions in Ohio. Published Wednesday.
BREAKING NEWS ALERTS DAILY HEADLINES: Crain’s-produced news and blog items from the day
MANUFACTURING REPORT: A weekly guide to Northeast Ohio’s manufacturing sector. Published every other Wednesday.
REAL ESTATE REPORT: A weekly guide to real estate news. Published Monday.
SMALL BUSINESS REPORT: A weekly guide to small business news. Published Thursday.
HEALTH CARE REPORT: A weekly guide of changes in the health care industry. Published Tuesday.
SHALE AND ENERGY REPORT: A weekly guide to the energy industry. Published Friday.
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within hours of TMZ releasing the video of the elevator beating, the Ravens cut ties with him, and the league extended Rice’s suspension to an indefinite one based on “new evidence.” Goodell said he hadn’t seen footage of what happened in the elevator, though The Associated Press reported that a law enforcement source had sent the video to the league. Matt Barkett, a senior managing director at Dix & Eaton, said the league handled the Rice investigation “pretty clumsily” at the start. “I think they’ve recovered reasonably well since,” said Barkett, who manages Dix & Easton’s crisis communications team. “First, they acknowledged they made a mistake.” Barkett pointed to the league on Sept. 15 appointing four women to help shape the NFL’s domestic violence policies. In the letter Goodell sent to teams and staff members announcing the move, he said the league knows it “will be judged by our actions and their effectiveness.” “You want to acknowledge a mistake, then put a framework in place to address it seriously,” Barkett said. “In the end, the proof will be in the pudding as far as whether they’re able to facilitate real change.”
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An NFL source said the individual teams’ strategies vary when it comes to managing controversies. Some clubs have communications consultants, and some do not. The Browns, Cavaliers and Indians have all worked with Lisa Levine, who owns ZONE, a sports media consulting and coaching firm in Cleveland. Levine, then Lisa Bercu, spent seven years as a sports reporter for WEWS, the ABC affiliate in Cleveland, before launching her company in 2000. One of her clients is the Minnesota Vikings, who came under fire on Monday, Sept. 15, for saying Peterson, who is facing felony charges in Texas, would return for the team’s Sept. 21 game. The team reversed course two days later, barring the six-time Pro Bowler from all team activities until the case is resolved. If he spends the entire season on the league’s exempt/commissioner’s permission list, Peterson will collect all of his $11.75 million salary. Levine told Crain’s she couldn’t comment because of her work with the Vikings.
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The NFL received more criticism after an independent investigation into the Rice case was launched Sept. 10. The inquiry will be led by former FBI director Robert S. Mueller III, who is a partner at a Washington, D.C.-based law firm, WilmerHale, that helped the league negotiate a 2009 deal with DirecTV that was worth $1 billion per year. With more than 1,000 lawyers and 15 offices in the United States, Europe and Asia, it’s to be expected that the powerful law firm has for-
mer employees working for pro sports teams. Two of them are in Cleveland — Browns president Alec Scheiner and executive vice president and general counsel Sashi Brown. Scheiner, who spent four years in D.C. and three in New York during his 1997-2004 tenure with WilmerHale, declined comment on the current league controversies. But the powerful law firm hasn’t always been on the NFL’s side. During Scheiner’s eight-year tenure with the Dallas Cowboys, the Cowboys and Washington Redskins hired WilmerHale to represent them against the league in a salarycap dispute.
Money matters When the publicly owned Green Bay Packers disclosed their 2013 revenue figures in July, they showed a 4.3% increase in national revenue. Each of the NFL’s 32 teams received $187.7 million from the league’s $6 billion pie. NBC’s “Sunday Night Football” broadcast on Sept. 16 — a game that included 49ers defensive tackle Ray McDonald, who was arrested following a domestic dispute Aug. 31 but has yet to be charged — drew 22.2 million viewers and was the most-watched prime-time game ever on the West Coast. The next day, as the Vikings were being criticized for their handling of the Peterson case, ESPN’s “Monday Night Football” broadcast drew 14.9 million viewers — a year-over-year jump of 1%. All of which is why Paynter believes the league will recover from the series of scandals. “I suspect because America loves football, fans will move on,” she said. “In the U.S., it happens over and over again with various issues. People come back and watch the games because they love football. It’s the most financially successful of any sport. It’s making billions of dollars.” Dix & Eaton’s Barkett doesn’t “see any long-term fan dropoff,” but he said the league needs to “hold players accountable” to its increased standards when future situations occur. Cherry, a second-round draft pick by the New Orleans Saints in 1996, believes football “could be in trouble.” He cited declining youth numbers and added that, “If you have a mom who is on the fence about her son playing football or soccer, last week might have been the difference.” Dustin Fox, co-host of WKRKFM, 92.3’s “Bull and Fox” drivetime program, was a third-round selection by the Vikings in 2005. By the time Peterson was drafted in 2007, Fox was a member of the Buffalo Bills. He thinks the recent events won’t disrupt the viewing and constant consumption of all things NFL, but will have a long-term effect on the league. “I think this will change the NFL,” Fox said. “We’ve seen the power of social media and how it influences important decisions. Teams will have to be more proactive in the future with anything. If you make that one false move, then it’s all downhill.”
LOCAL TIES On Wednesday, Sept. 10, the NFL announced it was launching an independent investigation of how it pursued and handled evidence in the case involving former Baltimore Ravens running back Ray Rice. The league soon was criticized for its selection of former FBI director Robert S. Mueller III as the leader of the inquiry. Mueller is a partner with the Washington, D.C.-based law firm WilmerHale, which helped the NFL negotiate a 2009 deal with DirecTV that was worth $1 billion per year. Another WilmerHale partner, David Donovan, returned to the law firm in 2011 after spending six years as general counsel and chief operating officer for the Washington Redskins. WilmerHale also has two notable ties to the Cleveland Browns:
ALEC SCHEINER
The Browns’ president worked for the law firm from 1997-2004. He advised WilmerHale (formerly Wilmer Cutler & Pickering) on sports transactions and was a lead adviser on the purchase of the Ravens by Steve Bisciotti. During Scheiner’s tenure at WilmerHale, he worked for Dick Cass, who later became the Ravens’ president. Scheiner also did outside legal work for the Dallas Cowboys, who hired him in 2004 as general counsel. He spent eight years with the Cowboys, the last five as senior vice president and general counsel. During Scheiner’s time with the Cowboys, the organization hired WilmerHale to represent it in a salary-cap dispute with the NFL.
SASHI BROWN
The Browns’ executive VP and general counsel worked as an attorney for Wilmer Cutler & Pickering prior to joining the Jacksonville Jaguars as general counsel in 2005. The Browns hired Brown in January 2013, the month after they brought in Scheiner. — Kevin Kleps
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Nowacki Asset Management LLC
Period
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SEPTEMBER 22 - 28, 2014
RNC
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than a late June option. On Aug. 26, on the syndicated Hugh Hewitt radio show, committee chairman Reince Priebus may have tipped his hand when Hewitt asked if the return of LeBron James to the Cavaliers and the greater prospect that the basketball team will be using Quicken Loans Arena late into June meant a July convention in Cleveland in 2016. “Well, we have, we’ve got some time to make the date consideration, but clearly, I mean, this might, I’ll give you this,” he said, couching his words. “This very well might be the first time in national convention history that NBA free agency is helping us figure out what date we ought to choose.”
Exploring space Whatever the exact timeframe, Cuyahoga County is blocking out a substantial amount of free space in county-owned buildings for the Cleveland 2016 RNC Host Committee, the local convention organizing group that will be hosting the Republicans. That space for grunt work and maybe some after-business-hours relaxation by locals, party workers and telecommunications technicians includes blocking out the grand ballroom, junior ballroom and 12 meeting rooms in the under-construction convention center hotel for the three weeks before the convention begins. Some workers, though, are expected months earlier.
“This very well might be the first time in national convention history that NBA free agency is helping us figure out what date we ought to choose (for the RNC convention).” – Reince Priebus Committee chairman In legislation passed by Cuyahoga County Council earlier this month, the county agreed that it also will clear the Cleveland Convention Center and the Global Center for Health Innovation for up to six weeks for convention preparations and turn over the rotunda in the old county courthouse for a single social event. The county also will provide a suite of offices that will grow in size. The space will increase as convention time nears to the point where, for the last six months before the convention, the host committee and out-of-town convention planners will have 40,000 square feet of space. That’s only slightly less than two floors in the new Ernst & Young tower in the Flats. Teeuwen said the space either will be in the Whitlatch Building, a 1960s-era building on Carnegie Avenue the county recently vacated and has up for sale, or — if that building is sold — in similar space elsewhere downtown. Teeuwen said the county would only sell the Whitlatch Building before the con-
vention if the sale price compensated the county for the cost of space it would end up leasing for the convention planners.
Around the Square In an important development to aid the remaking of Public Square before the GOP comes to town, the Jackson administration last week won Cleveland City Council approval to buy out a loan backed by tax increment financing made in 2002 that has about $500,000 outstanding. Tracey Nichols, the city’s economic development director, said that with the buyout, the stream of property tax money paying off that loan can be turned into a bond of between $6 million and $10 million to put toward the $30 million renovation of Public Square. With the TIF bond proceeds, $8 million from the Cleveland Foundation and $5 million from the Gund Foundation, Nichols said the Public Square project can move ahead and be done before the Republicans’ arrival. That move could make borrowing for future renovation of the Higbee Building a bit more expensive, but that’s OK with the building’s owner, a partnership that includes Cleveland Cavaliers owner Dan Gilbert’s Rock Ventures empire. “If it makes sense, and we absolutely believe it does, to divert that money to Public Square, we’re supportive of that,” said Jennifer Kulczycki, vice president of communications at Rock Ventures LLC.
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GOING PLACES JOB CHANGES CONSULTING SME: Erin Ryan to senior business development manager.
EDUCATION WESTERN RESERVE ACADEMY: Lindsey Cottone to director of communications and marketing; Thomas Arnold to chief financial officer.
FINANCE FIRST FEDERAL LAKEWOOD: Matthew Lay to vice president, commercial banking relationship manager.
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Send information for Going Places to dhillyer@crain.com
AWARDS NORMAN S. MINOR BAR ASSOCIATION: Rev. Dr. Stephen Rowan (Bethany Baptist Church), Melody J. Stewart (Ohio Court of Appeals-Eighth District) and Michelle Johnson Tidjani (Cleveland Clinic Foundation) received 2014 Trailblazer Awards. THE PRESS CLUB OF CLEVELAND: Ed Byers (formerly of WGAR as “Ed Richards�), Constance D. Harper (Call & Post), Paul Orlousky (WOIO Action 19 News), Wilma Smith (formerly of WEWS and WJW/Fox 8) and Tom Suddes (Northeast Ohio Media Group) were named to the Hall of Fame; Wayne Dawson (Fox 8 News) received the Chuck Heaton Award.
Cottone
Arnold
Lay
Weston
Elliott
Simpson
Shafer
Vertes
Berebitsky
Orlousky
KEYBANK NA: Bill Weston to vice president, relationship manager, Key Private Bank, Cleveland region.
FINANCIAL SERVICE BSB PARTNERS, CPAS & BUSINESS ADVISORS: Jennifer B. Heikkila to senior manager; Adam Deal to senior accountant.
PRESENTED BY
LEGAL BENESCH: Pete C. Elliott to director of legal project management.
PREMIER SPONSOR
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MARKETING KARCHER GROUP: Josh Moyers to front end developer. POINT TO POINT: Mark Cerame to vice president, engagement and connection strategy; Jennifer Ristic to vice president, public relations and social media; Reggie Tabora to interactive creative director. SANCTUARY MARKETING GROUP: Denise Bellis to director of client strategy.
MEDIA IDEASTREAM: Mark H. Simpson to managing editor, news.
NONPROFIT BOYS HOPE GIRLS HOPE: Kate Shafer to director of development and marketing; Emily Samek to director of academics; Julio Cumba to director of college success; Holly Roe to coordinator of volunteer and scholar services; Mollye Hollis to donor and foundation services. MUSEUM OF CONTEMPORARY ART CLEVELAND: Peter Vertes to director of marketing and communications
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PUBLISHER:
John Campanelli (jcampanelli@crain.com) EDITOR:
Elizabeth McIntyre (emcintyre@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Retention is key Northeast Ohio universities are doing a good job of attracting foreign students to their classrooms. Now the region must do a better job of keeping those skilled and educated workers here after they graduate. A recent report by the Brookings Institution found that the Cleveland-Elyria-Mentor area attracted an average of 5,477 foreign students between 2008 and 2012, ranking 42nd among 118 metro areas for the number of foreign-born students. The Akron area came in at 50th, with 4,753 students. The majority of these students come to Northeast Ohio to pursue advance degrees and to study business, business services or engineering. These numbers are part of a nationwide trend of more international students coming here to study at our colleges and universities. Brookings found the number of students using F-1 visas grew from 110,000 in 2001 to 524,000 in 2012. The visa allows international students to study in the United States and potentially stay to work for a set period of time. You only need to look at Ohio State University — which in recent years has seen a 222% increase in the number of foreign students enrolling on its campus — to see the impact of those numbers. The payoff of this trend is significant, not only for universities but for regional economies. The Brookings report shows that foreign students paid $207.7 million in tuition and $108.7 million in living expenses from 2008 to 2012 in the Cleveland and Akron areas combined. Nationwide, foreign students contributed $21.8 billion in tuition and $12.8 billion in other spending. This influx of foreign students — who usually pay full freight and receive no student aid — is vital to colleges confronted with a shrinking domestic pool of high school graduates. Adding an international flavor to campus — attracting students from China, India, South Korea, Brazil and beyond — obviously is good for colleges. It’s good for domestic students, too, who get exposure to cultures other than their own, beginning their immersion into a global economy. It’s good for the economy, as noted by the money foreign students spend here, and it’s good for businesses in need of these skilled new graduates, whether they stay here or go home, providing needed links to global markets. Colleges are working hard to expand international enrollment. The University of Akron actually shows up at the airport to greet students with cookies. And organizations such as Global Cleveland are working to connect these students to domestic jobs. But there are too few work visas — known as H-1B visas — for these new graduates, especially those in high-demand areas such as science and technology. Immigration reform needs to happen and it needs to include expansion of visas so U.S. businesses — and more specific to us, Northeast Ohio businesses — can benefit from the great work Northeast Ohio’s universities are doing.
FROM THE PUBLISHER
Racial divide not as deep as they say Marcus Gould’s resume is as deep as Gould grew up in Central Florida and his baritone voice. remembers his uncle taking him to IndiHe’s a minister and chief of strategic ans spring training games in Winter partnerships at Mt. Zion Church in OakHaven. He loves that baseball is a famiwood Village. He leads politily-based game. More than any cal and community engageother sport, baseball’s memoment for Integrated ries are about who’s in the seat Consulting & Management, a next to you, not just what haplocal think tank focused on urpens on the field. ban economic development. So he reached out to the InHe’s an adviser to members of dians with a pitch, so to speak. the Ohio Constitution Mod“I told them, ‘Give me some ernization Committee. He tickets. I’ll bring a few people heads political engagement together. Let us demonstrate for the United Pastors in Misto you that this divide is not sion. He’s an advocate for ed- JOHN all-consuming. It’s not really ucation, civic and community CAMPANELLI there.’ ” engagement. He’s hosted fugiThe Indians gave him 400 tive safe surrender events where thoutickets. sands of offenders turned themselves in Gould gave 200 tickets to the Bedford peacefully. And he helps produce the Sprint Masters track team. He gave 100 to Greater Cleveland Praisefest event at the police chief of Malinta, Ohio, to disQuicken Loans Arena. tribute in his rural Northwest Ohio comA few weeks ago, he added “social enmunity, which is less than 0.5% Africangineer” to the resume. American. Another 100 tickets went to a Gould has a theory: We are not nearly diverse group of local young professionas racially divided as a nation and as a reals. gion as “the political chattering class” The game was Sept. 7, a sunny Sunday would have us believe. afternoon. Gould watched closely to see He thought Progressive Field might how 400 people — young and old, black make the perfect Petri dish to prove it. and white, urban and rural — shared a
single section in the upper deck. “Over the course of the game, people start moving and arranging themselves organically,” Gould said. “With the young kids, it was ‘Can you take this picture of me?’ ‘Wow, I like your hair.’ ... For the ‘tweeners, it was selfies and ‘Can you follow me?’ ‘Can you post this pic?’ ‘Can you tag me so I can see your friends too?’ “The YPs traded business cards like young people used to trade baseball cards, except now they text copies of their business cards to each other. They talked about new albums, concerts at The Q and summer’s coming to an end. “Guess what I never heard anyone say? No one mentioned Ed FitzGerald. No one mentioned John Kasich. If you would have tried to raise politics, they would have said, ‘Come on, we’re trying to have fun.’ “They’re not like us. They know when to shut up.” Gould called the outing a social experiment to gauge the region’s “true acceptance index.” With all the new friendships, connections and experiences, we apparently exceeded expectations, at least for one Sunday afternoon. But as ministers often ask, what are we doing the rest of the week?
TALK ON THE WEB Re: Lottery for Cavs tickets
Re: Food fight!
I would like to be able to buy a ticket to a game whenever I want and as often as I want. How can (the Cavaliers) put limits on my ability to spend my money to watch my favorite team play? Or, if I just decide to buy a gift a few days before a game, I can’t. If I just pick up and want to go to a game, I have to plan a month in advance. Nope, not feeling this at all. — Cynthia
“Vincent is the most talented pastry chef Cleveland has seen in a long time,” says Jonathon Sawyer, of Greenhouse Tavern and Trentina, in your Sept. 15 profile of pastry chefs Vincent Griffith and Anistar Meffert. (This comment is) so rude and inconsiderate to every pastry chef working in Cleveland. — Charlie
What’s your solution then? Have a free-for-all, which means the brokers and independent scumbags gobble them all up and sell them for triple (or more) of their face value? A lottery is a good solution. Sorry if it causes you a slight inconvenience. — killdeer5
Re: Cavs’ all-Ohio approach The 76% that are outside the Cleveland district are obviously the avid fans. Cavs should think about playing a couple regular season “home” games in Columbus and Cincinnati in future seasons to attract those on the fence. — 190935
Now everyone in the state can benefit from Cuyahoga County residents paying SIN TAX. Once again, we get screwed. — Screwed Again
Re: ‘Two-midnight’ rule affecting hospitals Who ends up paying? The patient. In my case, taking out my gall bladder cost me over $1,000 because my heart fluttered and they kept me for observation. Don’t tell me the hospital did not make money observing me. Neither Medical Mutual — although I’m over age 65, I am mandated to be on my spouse’s health insurance — nor Medicare would pay. The doctor said, “Not my problem,” and the hospital said, “You have to pay or we ding your credit rating.” — Bob Griffiths
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CRAIN’S CLEVELAND BUSINESS
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PERSONAL VIEW
Court must be a ‘moral compass’ By ROBERT M. WOLFF
The current battle over same-sex marriage harkens back to earlier, shameful periods of our nation’s history, where segregated schools and laws criminalizing interracial marriage were the norm. Then, as now, the federal courts served as our societal conscience, both affecting and reflecting evolving societal norms. Nineteen states and the District of Columbia have legalized samesex marriage. The remaining states that outlaw gay unions are now defending cases challenging the prohibitions. The march toward the inevitable showdown in the U.S. Supreme Court on the constitutionality of state laws banning same-sex marriages stopped in Cincinnati on Aug. 6, where the 6th U.S. Circuit Court of Appeals heard oral arguments in six cases from Michigan, Ohio, Kentucky and Tennessee. Kentucky and Michigan asked the appeals panel to reverse trial court rulings that struck down voter referendums outlawing same-sex marriage. Ohio and Tennessee asked the 6th Circuit to overrule decisions mandating recognition of same-sex marriages lawfully performed in other states. The road to almost certain Supreme Court review already wound its way through three other federal courts of appeal. All three of these federal appeals courts ruled in favor of gay marriage. The recent, unanimous decision of the 7th Circuit, striking down Indiana’s and Wisconsin’s same-sex marriage bans, is the most powerful opinion to date on this issue. It was authored by Reagan appointee and
Robert M. Wolff, shareholder in Littler Mendelson’s Cleveland office, represents many of Northeast Ohio’s largest employers, both public and private, in employment litigation and counseling. He is also the board chairman of the Diversity Center of Northeast Ohio and is the proud father of three children, one of whom is gay. noted conservative jurist Richard Posner, who found the proffered justifications for prohibiting gay marriage irrational, and therefore unconstitutional, even if the discrimination is not subjected to the heightened scrutiny reserved for allegations involving discrimination against traditional protected classes, such as race and gender. The 9th U.S. Circuit Court of Appeals in San Francisco also recently heard oral arguments on the appeal from the lower court decisions judicially invalidating same-sex marriage bans in Idaho and Nevada. All three appellate judges shared their skepticism of the rationales for the bans offered by counsel for the states. Reading the “tea leaves” following oral arguments in Cincinnati, scholars and commentators have predicted that the 6th Circuit may become the first federal appellate court to sustain the legality of state prohibitions on same-sex marriage. If the 6th Circuit rules against gay marriage, it would create a direct conflict among federal appellate courts and create even greater pressure on the U.S. Supreme Court to settle the issue in its 2015 session. Based on the questions asked at oral argument, it appears quite likely that Judge Martha Craig Daugh-
trey, a Clinton appointee, will vote to affirm the lower courts’ decisions supporting gay marriage and that Deborah L. Cook, a Bush appointee, will vote for upholding the right of a state to prohibit gay marriage. The swing vote appears to be Jeffrey Sutton, also a Bush appointee, who grilled counsel at oral argument with questions testing each sides’ position. Although Sutton is a Republican and a former private-practice trial and appellate attorney, his tenure on the federal appellate bench has reflected an independent, nonpartisan view of the law, and has included decisions upholding the Affordable Care Act and expanding Title VII to include a protection against discrimination against transgender individuals. Sutton’s judicial career is more reflective of the judicial philosophy of (former) Justice Lewis Powell than Antonin Scalia, two Supreme Court justices for whom Sutton clerked. Thus, although he suggested at oral argument that the voters may be in the best position to decide issues of same-sex marriage, Sutton is not predictably in either corner of this legal dispute. One thing is clear: Regardless of how the 6th Circuit rules, the legality of state laws prohibiting samesex marriage will, at the end of the day, be decided by the Supreme Court. And, as it did when it outlawed segregated schools in Brown v. Board of Education and criminal prosecution of interracial couples in Loving v. Virginia, this court will again have the opportunity to be our national moral compass, and interpret the Constitution in light of our evolving notions of “right and wrong.” Let us hope the court is up to the challenge.
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LETTER TO THE EDITOR
ALS, while worthy, is not the only charity I am a sophomore at Benedictine High School. I found many intriguing points in your Sept. 8 article on how the ALS Ice Bucket Challenge was both giving ideas to and potentially posing a threat to other nonprofits. While there are plenty of good things about the Ice Bucket Challenge, there are also issues. Most participants in the challenge do not donate or even look up the disease, but instead do it because it is pop-
ular. Also, with all the focus on ALS, many are forgetting other serious diseases. The nonprofits affiliated with these causes are also holding fundraising promotions without getting as much attention as this challenge. I’m not saying there’s anything wrong with the challenge, but the message should be promoted more than the activity. While other serious campaigns get little to no attention,
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383, Fax: (216) 694-4264, www.crainscleveland.com Publisher: John Campanelli (jcampanelli@crain.com) Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Kevin Kleps (kkleps@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Rachel McCafferty (rmccafferty@crain.com) Manufacturing and energy Jeremy Nobile (jnobile@crain.com) Finance Research editor: Deborah W. Hillyer (dhillyer@crain.com)
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the Ice Bucket Challenge is getting attention from people who don’t even know about the true cause. Perhaps it is time for a new craze, some sort of different challenge for brain cancer, or a fair for Alzheimer’s. With all the positive impact that ALS has received, I believe that people should be just as worried about other critical diseases. — Cameron Irizarry Cleveland
SEPT.
26
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TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.
LIENS FILED R & R MECHANICAL INC. 3519 E. 75 St., Cleveland ID: 34-1501058 Date filed: Aug. 12, 2014 Type: Employer’s withholding Amount: $145,873 ABRAMO LLC 5131 Wiltshire Road, North Royalton ID: 45-4762361 Date filed: Aug. 19, 2014 Type: Employer’s withholding Amount: $109,774 WIRTANEN INSURANCE AGENCY INC. 23615 Lorain Road, North Olmsted ID: 34-1846529 Date filed: Aug. 19, 2014 Type: Employer’s withholding Amount: $94,637 LAKE LAND EMPLOYMENT GROUP OF AKRON LLC P.O. Box 93446, Cleveland ID: 34-1931081 Date filed: Aug. 26, 2014 Type: Employer’s withholding, unemployment Amount: $87,552 MOBIL MARTIN INC. 1279 W. 73 St., Cleveland ID: 34-1962549 Date filed: Aug. 19, 2014 Type: Employer’s withholding, unemployment
Amount: $84,726
Amount: $42,167
R & R Mechanical Inc. 3519 E. 75 St., Cleveland ID: 34-1501058 Date filed: Aug. 14, 2014 Type: Employer’s withholding Amount: $74,304
SPECTRUM HOME HEALTH CARE LLC 2000 Auburn Drive, Suite 200, Beachwood ID: 20-8667298 Date filed: Aug. 14, 2014 Type: Employer’s withholding Amount: $41,245
STAFFING SOLUTIONS ENTERPRISES INC. 5915 Landerbrook Drive, Suite 100, Mayfield Heights ID: 34-1208973 Date filed: July 18, 2014 Type: Employer’s withholding, civil penalty assessment Amount: $58,250
PAUL F SMITH JR. DDS INC. 20119 Farnsleigh Road, Shaker Heights ID: 34-1337892 Date filed: Aug. 19, 2014 Type: Employer’s withholding Amount: $38,804
SPECTRUM HOME HEALTH CARE LLC 2000 Auburn Drive, Suite 200, Beachwood ID: 20-8667298 Date filed: Aug. 14, 2014 Type: Employer’s withholding Amount: $52,813
K & M TOWING & AUTOMOTIVE INC. 13011 Bellaire Road, Cleveland ID: 34-1411940 Date filed: Aug. 27, 2014 Type: Employer’s withholding, unemployment Amount: $36,926
TOMO HIBACHI RESTAURANT AND LOUNGE LLC 1293 W. 9th St., Cleveland ID: 27-5157504 Date filed: Aug. 14, 2014 Type: Employer’s withholding, employer’s annual federal tax return Amount: $48,863
LANIER & ASSOCIATES INC. CLEVELAND BLACK PAGES 1814 E. 40 St., First floor, Cleveland ID: 34-1696704 Date filed: Aug. 19, 2014 Type: Employer’s withholding, unemployment Amount: $33,089
ARROWHEAD INTERNATIONAL INC. 9900 Greenhaven Parkway, Brecksville ID: 04-3672765 Date filed: Aug. 27, 2014 Type: Employer’s withholding, unemployment, failure to file complete return Amount: $47,256
AP VENTURES LLC 2161 Murray Hill Road, Cleveland ID: 20-4863219 Date filed: Aug. 14, 2014 Type: Employer’s withholding Amount: $30,499
HARGUR INC. 4525 Turney Road, Cleveland ID: 20-1129797 Date filed: Aug. 12, 2014 Type: Employer’s withholding
NEW MANAGEMENT INC. 12800 Shaker Blvd., Cleveland ID: 20-3059036 Date filed: Aug. 19, 2014 Type: Employer’s withholding Amount: $30,336 FAMILY FOR LIFE FOUNDATION LITTLE SCHOLARS
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7115 Woodland Ave., Cleveland ID: 45-4976611 Date filed: Aug. 14, 2014 Type: Employer’s withholding Amount: $29,957 POST PAINTING INC. 24816 Aurora Road, Bedford Heights ID: 34-1700614 Date filed: Aug. 14, 2014 Type: Employer’s withholding Amount: $26,742 MCKNIGHT & ASSOCIATES LTD. 812 Huron Road E., Suite 421, Cleveland ID: 30-0687506 Date filed: Aug. 26, 2014 Type: Employer’s withholding Amount: $26,598 THOMPSON GROUND DEVELOPMENT INC. 12640 Euclid Ave., E. Cleveland ID: 34-1533357 Date filed: July 18, 2014 Type: Unemployment Amount: $5,542
LIENS RELEASED AMROC CONSTRUCTION INC. 3210 Scranton Road, Cleveland ID: 68-0650859 Date filed: June 23, 2014 Date released: July 17, 2014 Type: Employer’s withholding Amount: $39,759 AMROC CONSTRUCTION INC. 1900 Grove Court, Apt. 120, Cleveland ID: 68-0650859 Date filed: Aug. 27, 2013 Date released: July 18, 2014 Type: Failure to file complete return Amount: $29,442 AMROC CONSTRUCTION INC. 3210 Scranton Road, Cleveland ID: 68-0650859
Date filed: June 4, 2013 Date released: July 18, 2014 Type: Failure to file complete return Amount: $29,434 AMROC CONSTRUCTION INC. 1900 Grove Court, Apt. 120, Cleveland ID: 68-0650859 Date filed: May 7, 2014 Date released: July 18, 2014 Type: Employer’s withholding, unemployment Amount: $14,121 ANTHONY MUSCA & ASSOCIATES INC. 440 Hawthorne Farms, Gates Mills ID: 01-0697862 Date filed: Aug. 24, 2012 Date released: July 17, 2014 Type: Employer’s withholding Amount: $37,386 BENJAMIN P WRIGHT & ASSOCIATES CO. LLC WRIGHT RENOVATIONS & KITCHENS 1387 Mathews Ave., Lakewood ID: 20-3175433 Date filed: Feb. 28, 2013 Date released: July 18, 2014 Type: Employer’s withholding, unemployment Amount: $10,155 CHROME INDUSTRIES INC. 3041 Perkins Ave., Cleveland ID: 34-1513189 Date filed: April 4, 2014 Date released: July 18, 2014 Type: Employer’s withholding Amount: $11,139 CLEVELAND BUSINESS CONSULTANTS LLC 526 Superior Ave. E, Suite 1111, Cleveland ID: 11-3678151 Date filed: March 19, 2014 Date released: July 18, 2014 Type: Employer’s withholding, failure to file complete return Amount: $19,564
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MEETING & EVENT PLANNER
SEEING IS BELIEVING Virtual imaging technology giving events firm new life By CHUCK SODER csoder@crain.com
Ever see that YouTube video where Tupac comes back to life at a concert and starts rapping? That same technology is helping Joel Solloway resurrect what had been a struggling event production business. This summer, Solloway’s company, EventWorks4D, finished building a 2,000-square-foot theater on East 40th Street in Cleveland. The theater isn’t designed for live actors, but you’d be forgiven for thinking that there are real people standing on stage. Shortly after Solloway turns on his projector, the image of a dancing ballerina appears above the stage, but it looks like she is standing on it. Same goes for Mariah Carey, Homer Simpson and several other celebrities and CEOs who speak to an invisible crowd during the demonstration. And in between, cell phones, cars and company logos float through the air. You can see through them if you look closely, but otherwise you might find yourself believing that BMWs can levitate. Images like those — made possible by a British company that updated an old theater trick — form the core of Solloway’s new business strategy. Though EventWorks4D still provides other event production services, today it focuses mainly on helping companies and other organizations create their own presentations using the technology. Solloway needed to make a change. His previous company, a now-dormant entity called EventWorks See TECHNOLOGY, page 17
CHECK IT OUT FOR YOURSELF: To see some of the technology on display, go to www.CrainsCleveland.com/EventWorks
CHUCK SODER PHOTOS; SUBMITTED ART
A theater (ABOVE) at the Ariel International Center on East 40th Street in Cleveland is used to show off Musion’s technology, which can be used to project performers, business executives and even famous cartoon dads (BELOW). Local company EventWorks4D in July 2013 licensed the right to market the technology, which is based on “Pepper’s Ghost,” a magic trick from the 1800s.
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Building a sound business By SHARON SCHNALL clbfreelancer@crain.com
Along Broadway Avenue, in Cleveland’s Slavic Village, James Taylor’s Carolina twang can be clearly heard. Not the real James Taylor, but a downloaded James Taylor, played through an All-Tronics Technical Systems speaker. Past several buildings and around the corner onto Barkwill Avenue, the music is still audible. In the opposite direction, now toward East 55th, Taylor’s singing continues, not drowned out by a passing bus or other noise.
The sound comes via a narrow, portable speaker, mounted on a bracket just above a door to All-Tronics Medical Systems Inc.’s headquarters of which All-Tronics Technical Systems, or ATS, is a division. The aptly named Lucid speaker was invented in 2012 by All-Tronics owner Dennis Althar. It weighs 25 pounds and is 40 inches tall by 6 inches wide and 5 inches deep — a downsizing from the six-speaker stacked configuration often used to produce this sound. A single speaker retails for $1,675. Althar invented the speaker after
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attending an indoor event where the poor sound system rendered inaudible the speaker’s message. The solution, he says, came to him in a dream. Althar’s neighborhood sound demonstration includes a stroll to the parking area behind the All-Tronics headquarters, a turn-of-the-century building owned by Althar. The building, a former furniture store, serves as a production site where eight employees, to date, have assembled approximately 200 sold speakers; another 40 or so are on 30-day back order. In the parking lot, what is notable is that the volume has not been increased to accommodate the listening distance from the speaker out front. “It’s not loud,” Althar says. “Everybody is going louder and louder. They equate loud to quality. It’s not loud. It fills it (the space) totally. It’s a different kind of sound.” The Lucid cabinet contains a vertical array of transducers — energy converting devices — that adjust the phasing, or timing, of how sound emerges and travels. With horizontal sound distribution, the system keeps the sound from traveling toward the sky and ground while increasing the side-toside distribution. “There’s a lot of physics behind this; it’s our ‘secret sauce,’” he says. Later, Althar’s demonstration moves to the Boys & Girls Clubs of Cleveland, where two Lucid speakers are mounted on each side of the administrative center’s gymnasium. Neil Diamond is singing, but absent is the echo expected with sending sound across an unfilled cavernous space. Nor does the expected screech occur when Althar talks into a microphone just inches from the speaker. Althar is as interesting as the speakers he has invented.
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Dennis Althar demonstrates the speaker’s capabilities inside the Slavic Village headquarters of ATS Sounds. He grew up in Slavic Village. His childhood electronics education was self-taught, from reading every available book on the subject at the neighborhood Broadway Free Library, then applying that knowledge, repairing radios and televisions. Later, he says, his abilities were “validated” as an electronics and communications specialist, serving in the U.S. Air Force during the Vietnam War. His lives on the top floor of his company’s headquarters, across the street from the now-defunct Broadway Free Library building — another parcel of real estate he previously owned, but sold months ago to provide cash influx into the fledgling ATS division. Additionally, Althar says he owns roughly 13 Slavic Village properties, including parking lots, properties that he is willing to sell, as needed, to keep cash flowing into this new venture. Another building, at 5363 Broadway Ave., owned by Althar and with a 14,000-square-foot space, is expected to be ready in two months to support production expansion. Sales were contained during a two-year field testing and refinement phase. Right now, six representatives sell the product in the U.S. and Canada. Churches and schools are the primary sales targets. Another six people make up the investment team. To date, they collectively have invested $23,000 in the company, Althar says.
“Everybody is going louder and louder. They equate loud to quality.” – Dennis Althar inventor, Lucid speakers Cash isn’t what drives investor selection, he adds, because this isn’t a startup company. He has the resources and connections thanks to the parent company All-Tronics Medical Systems, a manufacturer of high-resolution video recorders for the X-ray industry, which he founded in 1978. What Althar wants are actively involved investors with needed expertise, including those who can take the company from small- to largescale production and operations. For the last two summers, Crocker Park has used two Lucid speakers to provide sound for outdoor movie nights. Tim Wiles, director of operations at Crocker Park of Westlake, first heard the speakers when a nonprofit, using Crocker Park as an outdoor venue, featured the Lucid speakers. “It was a chance happening,” he says. “I heard those speakers. I was far away, from where the speakers were, when I showed up ... I couldn’t tell where all that sound was coming from. As far away as I was, I thought, ‘Man, that can’t be those little speakers.’ ”
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Here’s how Musion’s EyeLiner technology has been used for purposes that don’t involve resurrecting a dead rapper: The Cleveland Clinic used the system throughout the launch event for its “The Power of Every One” fundraising campaign in June. And toward the end it used the technology to emphasize why it chose that name: One by one, life-size images of doctors, nurses, volunteers, donors and others who touch patients’ lives appeared on stage. Steris, of Mentor, also has used the system to promote its medical equipment at trade shows, and to spice up presentations at its annual North American sales meeting.
Both of those companies worked with EventWorks4D. So did Jim Beam, which had EventWorks4D create a ghostly bartender to greet drinkers at a party the company threw to promote its Jacob’s Ghost whiskey. The Musion technology is popular with performers. EventWorks4D wasn’t involved, but the EyeLiner system made it possible for Madonna to perform alongside Gorillaz, an animated band, during the 2006 Grammy Awards.
HOW IT WORKS The technology EventWorks4D licensed is based on a magic trick from the 1800s. If you’ve ever been to a carnival where a woman transforms into a gorilla, you’ve probably seen the “Pepper’s Ghost” trick in action. Musion, the British company that licensed the EyeLiner technology to EventWorks4D, merely improved upon the original idea. Here’s how the EyeLiner system works: A projector shoots a high-definition image onto a hidden screen in front of the stage. That screen reflects the image up onto a polymer film that juts out and up from the bottom lip of the stage at a 45 degree angle. The image appears upright to the audience, giving the illusion that the person or thing being portrayed is actually on stage. The polymer is transparent, it’s extremely thin and it’s pulled tight, so you may not see it at all unless you get close. But it does catch the image much better than the glass that magicians used in the olden days.
Plus, in 2011, Mariah Carey used the technology to give a Christmas concert in five eastern European cities at once as part of a promotion for T-Mobile. Indian Prime Minister Narendra Modi used it for bigger purposes: He gave virtual campaign speeches in thousands of locations across the country while running for the position earlier this year, often speaking to crowds in dozens of locations at once. He tested the technology two years earlier, while running for a fourth term as chief minister of the Gujarat state. All the while, he was able to see footage from the different cities, so he could interact with the crowds.
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TECHNOLOGY continued from page 13
Inc., provided all sorts of event production services. Planning. Decorations. Music composition. You name it. But the recession decimated that business. When times got tough, companies started producing their own events, Solloway said. “That fell apart. Nobody was doing that anymore,” he said.
Always on the lookout Over the years, however, Solloway tried to keep his eye on new technologies his company might be able to use. And in 2007 he found one that blew his mind. That’s when he flew to London to visit a company called Musion. Since then, that company has occasionally made headlines for its ability to project images that look real. The most famous of those images was designed to look like Tupac Shakur. In 2012, Musion’s EyeLiner technology was used to project the late rapper’s image on stage at the Coachella music festival in California. There, the resurrected Tupac performed alongside a living rapper: Snoop Dogg. That video racked up more than 32 million views on YouTube. After visiting Musion, Solloway worked with another company to market the EyeLiner technology in the United States but left the partnership a few months later, saying only that it “didn’t work out.” In 2012, however, Musion reached out to him to see if he was interested in giving the technology another shot. EventWorks4D in July 2013 licensed the right to market the EyeLiner system, but there was a catch: He had to build a theater capable of demonstrating the technology. He had some help, though. Last year he received an investment from the owners of the Ariel International Center, an internationally focused events center and business incubator. EventWorks4D and its theater are now housed inside the incubator. From the audience, the theater looks pretty typical. Stand next to it, however, and you can see what it consists of. An overhead projector beams a high-definition image down, onto a screen on the floor. The image reflects off of the screen and hits a transparent polymer film that hangs in front of the stage at a 45-degree angle. The system is based on “Pepper’s Ghost,” a magic trick from the 1800s. But back then magicians used glass above the stage. Replacing the glass with the ultra-thin polymer makes the images look more realistic, Solloway said. “It’s a Victorian trick in a 21st century model,” he said.
Beyond the PowerPoints So far, EventWorks4D is doing “really well,” according to Solloway. The company, which has five employees, has created presentations for some big organizations, including several in the health care industry, such as the Cleveland Clinic and Steris Corp., a medical equipment company in Mentor. The technology added excitement to the kick-off event for the Clinic’s
new $2 billion fundraising campaign, according to Kathleen Travers Niess, executive director of development services at the Clinic. The technology spiced up presentations throughout the event, and it allowed the Clinic to make a splash when it unveiled the name of its campaign — “The Power of Every One.” And toward the end of the event — which attracted 600 people, including many donors — the Clinic used the system to emphasize the importance of everyone who touches the lives of patients: It briefly flashed images of all sorts of people tied to the Clinic, including doctors, nurses, volunteers,
greeters and donors. Some attendees actually thought the images were real people standing onstage, being lit one by one, Niess said, citing conversations she overheard at the event. The Clinic will probably use the EyeLiner system again, the next time it wants to wow a crowd at a big event, Niess said. “How many PowerPoint presentations have these people seen?” she said. EventWorks4D often will charge $100,000 or more to create an EyeLiner presentation for a client, Solloway said, though it can vary based on project size. Some of the money goes to Musion: Every time he uses the com-
pany’s proprietary polymer foil, he has to pay a fee that varies depending on the size of the foil he uses for that show.
‘Only limited by your imagination’ Now, Solloway is thinking broader. For instance, he’d like to use Musion EyeLiner to create permanent exhibits at museums. He also might use it to create virtual concerts in cruise ships, casinos and night clubs. Or he could bring Abraham Lincoln back to life for the Republican National Convention that’s coming to Cleveland in 2016.
“You’re only limited by your imagination,” he said. Radhika Reddy sees similar potential. She and her longtime business partners — Lynn Selzer and Irene Zawadiwsky — bought a majority stake in EventWorks4D last year after seeing the EyeLiner technology in action. Reddy said she’s hoping that events at the Ariel International Center can take advantage of what she described as an “awesome” technology. But like Solloway, she’s thinking broader. “Imagine going to a museum and having someone like Martin Luther King speak to you. There are so many applications,” she said.
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SEPTEMBER 22 - 28, 2014
Chagrin’s film fest true to life By SHARON SCHNALL clbfreelancer@crain.com
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The Chagrin Documentary Film Festival was established as a cinematic and tourist destination for documentary filmgoers, but for the event’s founder, the festival’s launching and growth reflect a personal journey. “This festival was founded to celebrate the spirit of the filmmaker. I stand in awe of what these filmmakers do,” said Mary Ann Ponce, festival founder and executive director. From Oct. 8 through Oct. 12, the festival, now entering its fifth season, will showcase 70 films from 20 different countries to a growing audience; this year’s festival is expected to fill a record-breaking 7,000 seats at five main venues. Last year’s Northeast Ohio audience represented 60 ZIP codes plus moviegoers from 10 other states and four other countries, Ponce said. The festival will open with the Midwest premiere of “The Curse and the Symphony,” about a former punk musician’s efforts to break into the world of classical music and have his classical composition performed with full orchestration. The film is part of a diverse roster of true and original stories being brought, once again, to Northeast Ohio. Ponce did not plan to establish and grow a nonprofit documentary film festival. Her professional expertise was acquired in the business sector. From 1981 to 1992, she worked for British Petroleum, with the then downtown Clevelandbased U.S. operations, as an accountant in financial reporting and later in strategic planning and acquisitions. Elsewhere, from 1995 to 2006, she served as a financial vice president and controller for smaller Chagrin Valley companies. “I would never have imagined that I’d be running a documentary film festival; so this is an extremely unexpected and, in some ways, ‘unwanted’ journey,’” she said. Ponce’s experience started not with the festival’s founding in Chagrin Falls, where she is a resident, but with her son David’s personal and artistic talents and ambitions. “My son was a filmmaker. He was really, really looking forward to — year after year — excited about going to South Africa, to this AIDS orphanage in South Africa,” Ponce said. In March 2006, his sophomore year at Chapman University in Orange, Calif., David Ponce traveled to Roodepoort, Johannesburg, with a local church group. He shot footage of the nonprofit Sparrow Village for an intended documentary film about the children of the village’s orphanage, children infected with AIDS/HIV or impacted by the diagnosis through the death of one or both parents. “A couple months later he (David) was diagnosed with leukemia. We lost him three months later. His real drive was that this film must get finished,” she said. The film was completed with support of David’s colleagues from the Dodge College of Film and Media Arts from Chapman University and, back home, through local com-
munity fundraising support. During 2008 and 2009, the completed film, “The Lost Sparrows of Roodepoort,” was submitted and accepted at film festivals in the United States and overseas, with Mary Ann Ponce and others representing the film. The experience gave Ponce firsthand exposure to festival operations but also interactions with passionate filmmakers; the latter created a lasting impression and served as an inspiration for the Chagrin Documentary Film Festival. Another festival catalyst was a trip to Clomnel in County Tipperary, Ireland, where Ponce represented her son’s film at the 2008 Ireland International Film Festival. Clomnel, she said, was quaint and reminiscent of Chagrin Falls. “I don’t remember the exact words, but I said, ‘We could do something like this in Chagrin Falls,’” she recalls. In 2010, the Chagrin Documentary Film Festival was launched and showed 90 films, all suggested by another festival organizer; 1,900 seats were filled. First-year revenue, consisting of ticket sales and donations, were about $50,000. This year, that combined figure is projected at $180,000. In 2013 and 2014, the Chagrin Documentary Film Festival was listed among the “Top 50 Festivals Worth the Entry Fee,” by MovieMaker magazine, a Santa Monica, Calif., publication devoted to the art and business of making movies. The Top 50 list included festivals of any genre, not just documentary. Chagrin’s festival made the cut, in part, because the organization, quite simply, treats directors well, said Kelly Leow, MovieMaker’s deputy editor. All attending filmmakers are offered a home-stay program or a stipend for lodging; local transportation is provided. Other reasons for being worthy include an inhouse public relations function that gets the word out about each director’s film; significant cash awards and networking opportunities; and “the feeling of the whole town being involved,” Leow said. This year, the 70-film lineup was selected from 400 submissions. Since the second year, the festival has accepted direct submissions. Each film is viewed three times during a yearlong process that draws on the time and talents of 25 to 30 volunteers. Increasing in-kind donations, sponsorships, community support and volunteerism remain critical elements of the festival. In turn, the festival also makes a contribution. Last year, Ponce estimates $430,000 was infused into the Northeast Ohio economy based on an economic calculating model, survey data and analyses of the spending patterns of festival patrons, visiting filmmakers and festival organizers. “You get thousands of visitors into the village. The restaurants are full. They go to our retail. It’s very positive,” said Thomas Brick, mayor of Chagrin Falls. “It also makes people aware of Chagrin Falls. Our retail and restaurant people like to portray Chagrin as a destination.”
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THE REEL THING What about the documentary genre itself? “There has been the perception that documentaries are not going to be interesting,” said Mary Ann Ponce, festival founder and executive director. “We have films every year that make us laugh, that make us cry. That’s what we’re looking for.” A breadth of topics are sought, in particular ones addressing current concerns including the Middle East, gay issues and the environment, and because of what inspires the festival, films of the human spirit. Since 2012, screener Mary Lerner has watched more than 1,000 hours of submitted documentary films. Lerner also is president of the Chagrin Documentary Film Festival board of directors and a longtime volunteer. Quality is the No. 1 consideration. Additionally, Lerner said, the film has to present more than one side of the same issue. Sometimes this is accomplished within the film; other times it is accomplished by presenting two films, with differing views on a related topic, at the same festival venue. Getting those differing views becomes easier as the documentary continues to be a rising genre. Digital technology and lower costs are driving more entrants and more diverse viewpoints, said Deirdre Haj,
CONTRIBUTED PHOTOS
TOP: Mary Ann Ponce, left, founded the Chagrin Documentary Film Festival. Mary Lerner, right, is a screener and board president. ABOVE: David Ponce is seen filming “The Lost Sparrows of Roodepoort.” BELOW: “The Curse and the Symphony,” about former punk musician Nathan Felix’s effort to break into classical music, will be shown Wednesday, Oct. 8.
This year’s Chagrin Documentary Film Festival runs from Oct. 8 through Oct. 12. It will feature 70 films from 20 countries. Venues include: Chagrin Valley Little Theatre United Methodist Church of Chagrin Falls South Franklin Circle Federated Church Valley Art Center Chagrin Falls Town Hall For information and a complete schedule, go to chagrinfilmfest.org.
festival director of the Full Frame Documentary Film Festival, a program of the Center for Documentary Studies at Duke University in Raleigh, N.C. In particular, Haj said, younger generations have grown up readily and easily using that technology and are creating sophisticated documentary films. “There are many — 4,000 to 6,000 — film festivals worldwide. Each year, some festivals spring up and each year some festivals die out,” MovieMaker magazine’s Kelly Leow said. What small percentage of festivals is devoted exclusively to documentary films is not known. No one international documentary film festival
association or any U.S. documentary association exists to track that information, Haj said. “Film festivals are still relatively young, certainly in the United States,” added Haj, who is a documentary film producer. And, they’re more than just about watching a film. The Chagrin Documentary Film Festival pairs up events with movies. This year, “Straight Up: Tennessee Whiskey” will, you got it, be paired up with a whiskey tasting event. The closing night Ohio premiere of “Reflect, Reclaim, Rejoice: Preserving the Gift of Black Sacred Music,” will include a performance by Cleveland’s Antioch Baptist Church choir. Beyond that, a film may be paired up with a talk by the visiting director, an area expert or a panel. “The Lost Sparrows of Roodepoort,” which inspired the festival, will have an Oct. 12 encore screening, and will be aptly paired with a to-be-announced “David Ponce Best of The Festival” award-winning documentary film. “Like most people, I have my point of view on a topic, but after watching a documentary, it has caused me to stop and think, ‘Do I have the right view?’ That’s the joy of the documentary,” Lerner said. “True stories are actually more interesting than fiction.” — Sharon Schnall
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NO KEYNOTES. NO PANELS. NO PROBLEM. NorTech hopes unique ‘unconference’ format will inspire, capitalize on regional expertise By JUDY STRINGER clbfreelancer@crain.com
When attendees of the NorTech Innovation UnConference take their seats at the Cleveland Convention Center later this week, they won’t be listening to the thoughtful musings of a keynote speaker or taking in a panel discussion on the latest emerging technology sectors. Nor will they be asked to choose seminars or presentations from a predetermined menu of issues or themes. Rather, attendees will determine the agenda by pitching and facilitating breakout sessions. This is no ordinary conference. This is an “unconference.” “Innovation is the core of everything we do,” said NorTech vice president of strategic outreach Karen Allport. “We did not want to do a traditional kind of conference, so I challenged my team to look at some research and come back with some different ideas. The bright professionals that they are, they came back with this ‘unconfer-
ence.’” Allport said unconferences have been around for a number of years, but are more popular on the coasts. The framework is pretty straightforward. During an opening convocation, participants line up at a microphone and pitch a topic they think will be valuable to explore in a smaller group setting. A facilitator sorts through those ideas in real time and boils them down into something that is “catchy and memorable,” Allport said, and can be posted as a discussion subject. Conference attendees then choose which discussion interests them most. There are no keynotes, presentations or agendas. There are, however, two notable rules. First, those who pitch an idea must be committed to taking a leadership role should that topic transpire into a breakout session. Second, participants who find themselves in a session that is not their cup of tea or not going in the direction they anticipated can leave
and join a different discussion at any point. The latter is known as the “law of two feet.”
A common goal Allport believes the unconference format will be a good fit for a regional technology conference, given the depth of expertise locally across a range of disciplines, from materials science and advanced manufacturing to biotechnology and energy innovation. She anticipates the conference will draw entrepreneurs, as well as C-level executives, private and public funders, attorneys, manufacturers and other individuals whose profession or interest is somewhere along the supply chain for technology-based products and services. Roughly 250 to 300 people are expected to attend — or rather, participate. NorTech invited San Franciscobased adviser Joshua Kauffman to facilitate its inaugural unconference after seeing him in action at the Mass Technology Leadership
Council’s Innovation Unconference last November. Kauffman will help ensure there are a variety of topics, Allport said, and those topics are developed enough to support a meaningful conversation. While NorTech’s program is focused around innovation, Kauffman has facilitated unconferences on other topics touching on the law, finance and politics. He said successful unconferences can arise from any subject matter. Most important is how participants are aligned toward common goals. “Strong unconferences have focused themes, like NorTech’s choice to discuss innovation,” he said. “And yet this unconference will succeed because there’s unity amongst participants who are broadly motivated by a shared sense of growth and vitality in Northeast Ohio.” While still unique, NorTech’s unconference won’t be the first in the area. LaunchHouse used the format to allow would-be entrepreneurs to pitch investors at its Tech Unconference in summer 2012. CEO and partner Todd Goldstein said the event was more popular than anticipated, drawing 30 startups from across the country, who pitched their ideas to more than 100 mentors and investors. The unconference was successful in emphasizing “participation, feedback and connections” among participants, Goldstein said, although it subsequently has morphed into LaunchHouse’s two-day 2DAYDiscovery startup workshop. Allport expects NorTech’s Wednesday, Sept. 24, event to cover roughly 30 topics during four breakout times. The nature of the unconference makes it impossible to predict the exact number of subjects and the topics that will emerge, or if this is something NorTech will bring back again.
THE ‘UN-AGENDA’ NorTech’s inaugurual Innovation UnConference will be Wednesday, Sept. 24, at the Cleveland Convention Center. San Francisco-based adviser Joshua Kauffman will facilitate the event. 8 to 8:45 a.m. Registration and networking 8:15 to 9 a.m. Mentor selection (Mentors are leaders from within NE Ohio’s business community with whom participants can elect to have on-on-one meetings.) 9 to 10 a.m. UnAgenda creation 10:15 a.m. to 12:30 p.m. Breakout sessions 11:30 a.m. to 12:30 p.m. First mentoring round 12:30 to 1:00 p.m. Lunch and networking 1:15 to 2:15 p.m. Second mentoring round 1:15 to 3:30 p.m. Breakout sessions 3:30 p.m. to 5 p.m. Networking reception For more information, as well as a list of mentors, see www.nortechuncon.com
YOU CAN WATCH US, TOO Look for Crain’s new Weekly Report webcast, which will hit your inboxes on Sunday mornings. To sign up, go to: crainscleveland.com/register.
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Hospital leaders come together Crain’s event draws region’s top minds in health care By JEREMY NOBILE jnobile@crain.com
Health care providers expect to see fewer patients in the future as care, technology and access to treatment improve. That means less revenue for hospitals — collectively, the country’s largest employers — which find themselves operating in a dramatically changing industry. “The United States is going through the biggest change in its society, probably since the New Deal, affecting the biggest industry in the United States and affecting 100% of the population,” said Dr. Delos M. “Toby” Cosgrove, president and CEO of the Cleveland Clinic. “And as we do that, we recognize that we have to change the delivery system to go to value, increasing in quality and making care affordable. And that is driving change in a very, very big industry.” Cosgrove was one of five Northeast Ohio hospital leaders who on Thursday, Sept. 18, discussed a variety of topics surrounding the current and future states of the health care industry. The 90-minute conversation, moderated by Crain’s Cleveland Business reporter Timothy Magaw, capped off Crain’s Health Care Forum, which was held this year at the Cleveland Convention Center with more than 500 in attendance. Other high-profile panelists were Dr. Akram Boutros, president and CEO, MetroHealth System; Terrence Kessler, president and CEO, Sisters of Charity Health System; Dr. Thomas Stover, president and CEO, Akron General Health System; and Thomas Zenty III, CEO, University Hospitals.
What worries hospital leaders Boutros said the health care industry is undergoing a metamorphosis as hospitals transition from sick care to a more holistic approach based in preventive care, which is creating as many uncertainties as potential opportunities in the delivery of care. “I think in modern times, for us, this is the biggest opportunity and has the highest risk,” he said. How hospitals will get paid is a concern across the board. “This whole change from a sickcare model to a well-care model — as you know, Akron General has been talking about this for over 20 years — we spent $110 million on that concept. As a doc, I really don’t understand how people are going to judge our individual practitioners in a value-based world,” Stover said. “That sort of calculus of how it’s all going to work out is something I think we’re all struggling with.” Maintaining quality during these changing times is also a concern. “How do we make sure that our commitment and our promise to the community to provide the highest quality care with easiest access is going to be something we’re go-
ing to maintain in a world of declining resources?” Zenty asked. Kessler even compared a hospital’s transition to new pay and treatment delivery systems to a person trying to keep his balance with both feet in different canoes that are drifting apart. Cosgrove said that at the Cleveland Clinic, he wants to slash the budget by $1.5 billion over five years — roughly $300 million annually — by examining both direct and indirect costs. “And that includes everything down to how often you cut the grass and wash the windows,” he said. “But the main savings is going to be in how you deliver care.” The reasons costs are so high to patients, and vary so greatly between hospitals, range from the difficulty of assigning a value to services, Stover said, to a hospital’s costs for research and staff education. Meanwhile, Zenty pointed out, the antiquated way costs are reported to Medicare “really distorts” the true cost of care.
Collaboration: A key to viability In the past, each community had its own hospital and resources. But times have changed. And so has the way hospitals feel about joining forces to improve care and bolster their bottom lines. Physicians are consolidating into groups to share an “explosion” in knowledge and benefit from one another’s niche expertise, Cosgrove said. Hospitals join partnerships to share services, medical records and control malpractice issues. The goal is to improve efficiency, which could enhance the quality of care while decreasing costs. Cosgrove noted that total hospital beds across the country have dropped from 1 million to 800,000. But the nation’s average hospital occupancy hovers around 65%. Ohio shares that same average. And as hospitals see fewer patients, Zenty said, the result is a “decrease in demand and an increase in supply.” That spells bad news for hospitals that receive a large portion of their revenue from the federal government in the form of Medicare and Medicaid, which is expected to be cut next year, Zenty said. Partnerships, therefore, are becoming increasingly common as hospitals seek viability and efficiency while maintaining a high level of care. Just this past June, the Cleveland Clinic announced it would purchase a minority stake in Akron General. The partnership makes Akron General the Clinic’s exclusive health system partner in Summit County. “I think you’ll see more and more of that happening across the health care industry,” Boutros said, referencing collaborations in general. “(But) if you want to see collaboration happen, take the CEOs out of the room and let the providers figure out how to collaborate.”
FOR PHOTO COVERAGE OF THE EVENT, SEE PAGE 25
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It’s been a busy year for hotel building in the Cleveland area, which is an especially good thing given the Republicans’ announcement in July that they will host their convention here in 2016. Here, we check in — no pun intended — to get an update on two of the newest hotels that opened this year. Go to www.CrainsCleveland.com for photo galleries of Hotel Indigo and Metropolitan at The 9.
JANET CENTURY
HOTEL HAPPENINGS
SEPTEMBER 22 - 28, 2014
Hotel Indigo Beachwood, opened in July
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Contact: Radhika Reddy at (216) 344-9441, rr@arielventures.com
Hotel Indigo is just beginning to bud in Northeast Ohio, but its Cleveland roots run deep. From murals of the flora and fauna that are the namesake of the Cleveland Metroparks’ network of trails known as the “Emerald Necklace” to staff uniforms and meeting rooms that pay homage to the Hunter Jumper Classic competition at the Metroparks polo field, the new Hotel Indigo emphasizes the region’s history and culture. “The minute you walk in the front doors, you’re hit with our neighborhood story,” said general manager Cynthia Eckrich. “We’re fun, we’re funky, and we really reflect the Chagrin River Valley.” The hotel even offers a touchscreen neighborhood guide that connects guests with each other and local hot spots, many of which are recommended by staff. “We love our neighborhood and look forward to introducing guests to some of our favorite places,” said Eckrich. “Whether it’s taking in a sky-high view from a hot air balloon during the Blossom Time Festival or keeping your feet on the ground on a local nature trail, we can connect our guests to the neighborhood like no one else.” The four-story, 100-room, pet-friendly Hotel Indigo Cleveland-Beachwood at 26300 Chagrin Blvd. opened on July 24 following an $8.5 million renovation of a pre-existing late1960s hotel. Those renovations included the restoration of an original brick wall in the hotel lobby that was unveiled during the rehabilitation.
Since opening in what Eckrich describes as the peak of the hotel season, occupancy has been “fabulous.” She said the outlook is equally promising. The Hotel Indigo brand is a fast-growing upscale boutique concept of the InterContinental Hotels Group. The Beachwood facility is owned by CBHV LLC and is managed by Atlantic Hospitality Group. Besides amenities like spa-inspired bathrooms, plush beds, an outdoor courtyard with fire pit, 7,500 square feet of meeting space and a 24-hour gym, hotel officials hope the facility’s personality not only draws guests, but encourages them to explore the splendors of Beachwood. “We like to think of this neighborhood’s green spaces as ‘naturally priceless,’” said Mary Winslow, director of Americas Brand Management, Hotel Indigo. “The extensive collection of parks, trails and waterways beg to be explored and discovered, and we look forward to connecting our guests to this vibrant and unique neighborhood.”
Looking ahead to 2016: Almost immediately after Cleveland was announced as the home of the 2016 Republican National Convention, Eckrich said the hotel was inundated with inquiries. Many of those came from television media, she said, some of whom are planning stays of up to a couple weeks. Eckrich said the hotel is already about 75% booked for the event. She has no doubt they’ll hit capacity when the convention is in town. “We’re really excited about it. We’re almost sold out. This is just going to be a huge event for Cleveland.” — Jeremy Nobile
Also this year: The 484-room Westin Cleveland Downtown opened in May, replacing the former Crowne Plaza Cleveland City Center, 777 St. Clair Ave. A new Cambria Suites is expected to open Dec. 8, said general manager Scott Polenda. The four-floor hotel at 35600 Detroit Road in Avon will have 113 guest rooms, all suites. The hotel will have 3,300 square feet of meeting space, a restaurant and bar.
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The new Value Place at 20829 Emerald Parkway in Cleveland near the Cleveland Hopkins International Airport is expected to open early October. The extended-stay hotel will have 124 rooms, said Heather Leuci, director of communications for Value Place. And, according to the Ohio Hotel and Lodging Association, there are more than five other hotel projects planned in the region beyond this year.
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Metropolitan at The 9 Cleveland, opened in September
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Upcoming Editorial Feature
Just a couple years ago, the corner of East 9th Street and Euclid Avenue was an eyesore. But thanks to a $250 million project that helped transform the corner and the blighted Ameritrust Tower into a luxury hotel dubbed the Metropolitan at The 9 — a Marriott Autograph Collection hotel — one of downtown Cleveland’s main arteries could be confused with streetscapes more common in New York or Las Vegas. The 29 floors in the Marcel Breuer Tower that the hotel now calls home also includes high-end apartments, 156 luxury hotel rooms and suites and a bevy of amenities including a 60seat movie theater (where Cleveland Browns games are regularly shown), an indoor dog park, ballroom and a dedicated Mediterranean restaurant. There also are a variety of bars, including a rooftop lounge and a basement where historic bank vaults dating to the early 1900s have been converted into a nightclub and VIP rooms. The historic Cleveland Trust Company rotunda on the same property will have a Heinen’s Fine Foods grocery store opening next spring. General manager Kenny Didier said the building, designed by Geis Cos. of Streetsboro, already has begun to “redefine” the city landscape. The building itself was completely gutted and restored, largely utilizing materials recycled from inside, including more than 10,000 individual pieces of hand-set crystal. “You just can’t believe the transformation,” he said. “People used to come this way and there were these buildings that just sat empty for a decade. Now this is something that people can catch a hold of and really see coming into the downtown, the heart of Cleveland.” Didier last Wednesday, Sept. 17, said the hotel had been at capacity three out of seven days in the past week. “We’re pushing high weekend occupancy, and we have a tremendous amount of group-business interest right now,” he said. — Jeremy Nobile
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Looking ahead to 2016: The Republican National Convention is expected to bring its own boom to the hotel. And interest in the facility already has been very high, Didier said. “Our demand from the RNC would be to fill our hotel 100%,” he said, adding that “senior leadership” for the RNC is considering staying there themselves. He said a certain amount of rooms are expected to be reserved just for attendees of the convention. How much, though, has yet to be determined. “We will block the hotel with a specific amount of rooms dedicated just for the event,” Didier said, “probably somewhere between … well, let’ s just say a very high percentage.”
A guide on how your business can take advantage of the RNC convention coming to Cleveland. Book your ad today in Crain’s first feature on the RNC.
Contact Nicole Mastrangelo at 216-771-5158 or nmastrangelo@crain.com. JEREMY NOBILE
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20140922-NEWS--25-NAT-CCI-CL_--
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SEPTEMBER 22 - 28, 2014
WWW.CRAINSCLEVELAND.COM
CRAIN’S HEALTH CARE FORUM Last week, on Thursday, Sept. 18, more than 550 attendees joined Crain’s at the Cleveland Convention Center for a half day of panel discussions focused on the nation’s rapidly evolving health care environment. The discussions included valuable information about how to design effective wellness and benefits programs, how businesses can avoid the pitfalls associated with their employees’ caregiving concerns and how the Affordable Care Act has fared since it took hold. The event culminated with a historic panel discussion, including five of the region’s most well-known hospital CEOs. PHOTOS BY BARON PHOTOGRAPHY
The event kicked off with keynote speaker J. B. Silvers, a health care finance professor within the Case Western Reserve University’s School of Medicine and Weatherhead School of Management. Networking and lunch were provided after the panel discussions.
Cummins
Tom Fox, SIOR Jerry Fiume, SIOR, CCIM tel 330 535 2661 www.naicummins.com
Commercial Real Estate Services, Worldwide.
Need a 1031 Exchange Property? Chapel Hill Business Center
891 Moe Dr., Akron, OH 44310 10% Cap Rate 122,600 SF 66 Tenants
Professional Management One Owner Well Maintained 95% Historical Occupancy
View Videos at youtube.com/user/NAICummins
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CRAIN’S CLEVELAND BUSINESS
Contact: Phone: Fax: E-mail:
Denise Donaldson (216) 522-1383 (216) 694-4264 DDonaldson@crain.com
WWW.CRAINSCLEVELAND.COM
SEPTEMBER 22 - 28, 2014
REAL ESTATE
Copy Deadline: Wednesdays @ 2:00 p.m. All Ads Pre-Paid: Check or Credit Card
AUCTIONS
NORTHEAST OHIO PREMIER REAL ESTATE AUCTION / OCT. 2
Mortgage Foreclosure - Court Ordered
Real Estate Auction Oct.29 • 11:00 AM On-Site
COMMERCIAL, DEVELOPMENT & RESIDENTIAL PROPERTIES COMMERCIAL/OFFICE CONDO 633 W BAGLEY RD., 2A & 2B, BEREA, OH 44017
OFFERED WITH A RESERVE PRICE OF ONLY:
$75,000 2 Industrial Bldgs on 2.75 Acres
3,835 SF Commercial / Office condominium on 2nd floor of high quality, well maintained, 2-story, all-brick building built in 1977. 10 private offices, 8 cubicles, conf. room, kitchen & bathroom facilities. Excellent opportunity for user or investor. Free & Clear title.
With 10 & 20-Ton Bridge Cranes
FINAL On-Site Inspection: Wednesday, Sept. 24 from 10:00 A.M. to 11:30 A.M.
PARTNERSHIP DISSOLUTION FORCES IMMEDIATE SALE
OFFICE SHOWROOM & WAREHOUSE
1415 E. 222ND ST., EUCLID, OH 44117
OFFERED WITH A RESERVE PRICE OF ONLY:
$175,000
26,000 SF Commercial Property on 2 acres. Solid brick constructed flex building comprised of 7,000 SF office/showroom, 12,000 SF warehouse & 7,000 SF mezzanine storage. 20’ clear ceilings, 2 drive-ins, 1 dock, heavy power and 100+ car pkg lot. Terrific opportunity for user or investor. Free & Clear title. FINAL On-Site Inspection: Wednesday, Sept. 24 From 1:00 P.M. To 3:00 P.M.
9 AC
MADISON SCHOOL BOARD ORDERS IMMEDIATE SALE
TWO REDEVELOPMENT SITES
MADISON, LAKE COUNTY, OH 44057
10 AC
SUGGESTED OPENING BID:
$1,000/AC
Two redevelopment sites that are shovel ready in Madison, OH. 10+ Acres near Main & River Roads. 9+ Acres off of US Route 20.
COMMERCIAL DEVELOPMENT SITE 7156 PLEASANT VALLEY RD., PARMA, OH 44130
.47 AC
OFFERED WITH A RESERVE PRICE OF ONLY:
$25,000
Corner commercial lot located at the busy intersection of Pleasant Valley Rd. and Ridge Rd. (SR 3) in Parma. Zoned Retail Commercial, the parcel is directly adjacent to Legacy Place apartment complex and Pleasantview Care Center.
RETAIL / MULTI-FAMILY DEV. OPPORTUNITY SHEFFIELD TOWNSHIP, LORAIN COUNTY, OH 44055
9.47 AC
OFFERED WITH A RESERVE PRICE OF ONLY:
$25,000
9.47-Acre commercial land site with 500’of frontage on Oneil Blvd. and directly across the street from Centre of Sheffield Shopping Center, Apple’s Grocery Store. Zoned Shopping Center. Free & Clear title. CORPORATE SELLER ORDERS IMMEDIATE SALE
PRIME COMMERCIAL DEV. OPPORTUNITY
46051 US RT. 20, OBERLIN, OH 44074
OFFERED WITH A RESERVE PRICE OF ONLY:
$200,000
AUCTION Century Home Built 1860 95 S. Franklin St, Chagrin Falls,OH 1.47 Acres, 3,626 sf home, 2nd building 3020 sf With an apartment on 2nd floor Auction will be held at 1215 W. 3rd St. Cleveland, October 6th at 9am
For more information Contact 216-407-2622
RESIDENTIAL PROPERTIES
MID-CENTURY MODERN HOME 9621 HOBART RD., WAITE HILL, OH 44094
OFFERED WITH A RESERVE PRICE OF ONLY:
$150,000
Designed by Ernst Payer (Renowned Student of Frank Lloyd Wright), this 7,500+ SF home sits on 7+ Acres and features 4 bedrooms, 3 baths, 20’ x 40’ indoor swimming pool, 4 car attached garage, beautiful grounds and meadow. FINAL Open House: Sunday, 10:00 A.M. to 12:00 Noon. September 28.
MAGNIFICENT HUDSON ESTATE HOME 5700 RESERVE LANE, HUDSON, OH 44236
TRADITIONAL COLONIAL GATES MILLS HOME 1030 WEST HILL DR., GATES MILLS, OH 44040
1681 sq.ft. House converted to office First floor, basement and 3 upper floor offices. High traffic area, 10 min. to airport, I-480. Redevelopment or move-in ready. Asking $155,000.00. Fairview Park.
Call 440 667 6102
CONTRACTOR’S BUILDING FOR SALE OR LEASE LLOYD RD., WICKLIFFE 8210 SF .86 AC Office...2,890 SF Garage...2,100 SF Warehouse ...1,950 SF Leased...1,290 SF THE ZELKO CO. C-216-469-5097
59 ACRE EQUESTRIAN ESTATE 7139 MULBERRY RD., CHESTERLAND, OH 44026
FOR LEASE FOR LEASE
BUSINESS SERVICES
(855) 707-1944
216.360.0009 HANNA CHARTWELL BROKERAGE CHARTWELL AUCTIONS •
MICHAEL BERLAND & MAC BIGGAR, OH AUCTIONEERS
Crain’s Cleveland Business on-line @ CrainsCleveland.com
Selling a Business?
Buying a Business?
MEET SMARTER
TRAVEL LESS
Multi-Site Video Conferencing, Meetings, Webinars Depositions, Interviews, and Training plazawestconferencecenter.com
FLYNN ENVIRONMENTAL UST REMOVALS • REMEDIATION DUE DILIGENCE INVESTIGATIONS
(800) 690-9409
440-333-5484
FOR SALE: Small construction company, well established, highly rated, great return. Interested? You should be! Inquires to my email. rich12275@aol.com
Expanding, relocating? Used scissor-forklifts, pallet racking, shelving, conveyor, mezzanines. We install. Come to our warehouse. It’s Stys Inc. 216-641-7899 sales@stysinc.com
For daily on-line updates, sign up @ CrainsCleveland.com/Daily
FOR SALE
Submit your business card to promote your service.
CABINETS KITCHEN & BATH
Contact Denise Donaldson at 216.522.1383
Locally Made ProMark Cabinets
FINAL Open House: Sunday, 1:00 P.M. to 3:00 P.M. September 28.
CHARTWELLAUCTIONS.COM
DON’T FORGET:
Ohio Business Brokers Assoc. WWW.OBBA.ORG Find hundreds of businesses. Find a good broker to help.
$395,000
Spectacular 58.78 AC with 2 ponds. 4,351 SF updated century home with separate guest quarters. Updated throughout including mechanicals, kitchen & bathrooms. 2 car attached garage. Gas well on property generating $12K/Yr.
Bambeck Auctioneers Inc. www.bambeck.com
BUSINESSES FOR SALE
Rocky River
$600,000
8818-8828 Tyler Blvd., Mentor OH
CLASSIFIED
OFFERED WITH A RESERVE PRICE OF ONLY:
OFFERED WITH A RESERVE PRICE OF ONLY:
2 Business Condominiums
Westlake Ohio Beautiful 4150 sf retail space available in newer upscale area. Ideal for medical, professional or retail use. Great parking. Favorable lease terms. 14,000 vehicle traffic count average. You will love the location and exposure it will bring your business. Call Jim Coughlin 440-331-0900 ext. 212.
Global Expansion Consulting Construction • Acquisitions Exporting • Financing
FINAL Open House: Sunday, 10:00 A.M. to 12:00 Noon, September 28.
Attn.: Users/Developers/Investors
7,800 & 3,900 Sq.Ft.
$325,000
Perched on the hillside with panoramic vistas, this home is 5,900 SF on 3.107 wooded acres. 5 bed, 5 full baths, 1 half bath, large updated Kitchen, 1st floor living suite for in-laws or nanny’s quarters, game room, walk-out lower level multi-level deck across rear of property, 3 fireplaces, 3-car attached garage.
Real Estate Auction
Location, Location, Location
C. W. JENNINGS INDUSTRIAL EXCHANGE
FINAL Open House: Sunday, 1:00 P.M. to 3:00 P.M. September 28.
Owner Directs Immediate Sale
COMMERCIAL SPACE
OFFERED WITH A RESERVE PRICE OF ONLY:
This spacious,1-owner, custom home 4,768 SF on 13.66 wooded acres. Features include 4 bed, 3 full baths, 1 half bath, oversized Gourmet Kitchen, open front porch that spans the front elevation, screened back porch, huge master-suite, attached 3-car garage, brick enclosed courtyard (the “secret garden”), all-brick elegant barn and more. Built in 1991.
Bambeck Auctioneers Inc. www.bambeck.com
Oct.22 • 11:00 AM On-Site
10 Acres zoned commercial at the S/W corner of US RT 20 and RT 58. Strategically positioned across the street from a Walmart Super Center, Oberlin Plaza Shopping Center, Pizza Hut, Advance Auto Parts, Lorain County JVC and less than 2 miles from Oberlin College. Terrific opportunity for user or investor. Free & Clear title.
10 AC
3385 & 3391 Miller Park Rd AKRON (GREEN) OH Near Major Highways
BUSINESS SERVICE OWNERS!
(216) 453-3654
20140922-NEWS--27-NAT-CCI-CL_--
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SEPTEMBER 22 - 28, 2014
THE WEEK SEPTEMBER 15 - 21 The big story:
Oscar Villarreal, an investment fund manager who enticed dozens of Clevelanders to invest with him and is apparently hiding in Mexico, was indicted by a federal grand jury for operating a $9.6 million Ponzi-like investment scheme. Between Villarreal 2008 and 2013, Villarreal sold in 2006 what were believed to be limited partnership interests for more than $10 million to about 46 investors in Ohio, Florida, New Jersey and New York. The U.S. Attorney for the Northern District of Ohio says Villarreal used much of the proceeds to fund speculative trades for his own personal trading account that lost millions of dollars; to pay business expenses; and to fund a lavish lifestyle that included a Steinway piano and a Lamborghini sports car.
Their ship has come in:
The ClevelandCuyahoga County Port Authority and its Dutch shipping partner will expand international cargo service in 2015. Port authority executives outlined a plan for Spliethoff Transport BV of Amsterdam to add a second monthly sailing of the Cleveland-Europe Express between Antwerp, Belgium, and Cleveland. The ship that Spliethoff committed to the month-long roundtrip sailing, the Fortunagracht, first arrived in Cleveland on April 18, loaded with containers of consumer and industrial goods, wind energy parts, machinery and other industrial equipment. It since has made monthly calls on Cleveland.
Building block:
University Hospitals announced it will buy One Harvard Crossing — a 130,000-square-foot office site on 31 acres in Highland Hills — for $12 million. UH said the facility, on the corner of Harvard and Northfield roads, will house about 600 of the health system’s non-clinical, administrative employees currently scattered across several of its other facilities throughout the region. The health system plans to start moving employees in January, with the bulk of the relocations scheduled for completion by March.
New digs: Kent State University expects to break ground by the end of this month on a $20 million headquarters for its alumni and fundraising units. University trustees voted to proceed with the construction of a building for the Division of Institutional Advancement, which oversees Kent State’s fundraising activities, and the Office of Alumni Relations. The 34,400-squarefoot building will serve as the home for those units and their 104 employees, as well as for the Kent State University Foundation, which manages and administers private gifts to the university. It also will house a 28-station call center; conference rooms; and internal and external event space.
Well, well, well: Cleveland Clinic will launch a center that focuses on how lifestyle factors contribute to chronic disease. The Center for Functional Medicine, which the Clinic said is the first of its kind at an academic medical center, will open Tuesday, Sept. 23 and will be led by Dr. Mark Hyman, a wellness expert and founder of The UltraWellness Center in Lenox, Mass. Functional medicine is based on the evidence that lifestyle factors, such as nutrition, sleep, exercise, stress, relationships and genetics, contribute to disease. This and that: Progressive Insurance said it plans to fill “nearly 1,000 jobs” nationwide, including 324 in Greater Cleveland, by the end of 2014. The jobs are available in locations stretching from Arizona, California, Florida and Texas to its Mayfield Village headquarters. … Cedar Point announced it will re-work its Mantis roller coaster by next spring into a new ride called Rougarou. The Mantis will transition from a stand-up coaster into a more conventional, sitdown coaster with over-the-shoulder harnesses.
CRAIN’S CLEVELAND BUSINESS
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REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
Colliers homes in on growth in the multifamily market
Filmmakers hope they’re on the money with this doc
Colliers International in Cleveland is bulking up its multifamily practice — an area Brian A. Hurtuk, managing director of Colliers here, says is “fast becoming my favorite line of business.” Ben Baker has joined Colliers as senior vice president and principal, and he will cohead the firm’s multifamily practice in Northeast Ohio. Baker will work with Gary Cooper, also a senior vice president and principal at Colliers, to expand multifamily services throughout northern Ohio and the entire state. It’s a reunion of sorts for Baker and Cooper. Baker joins Colliers from Marcus & Millichap, where he was vice president of investments and director of the National Multi-Housing Group. Cooper previously worked at Marcus & Millichap before he joined investment banking firm Brown Gibbons Lang and then, in January, Colliers. Baker said he had a “great career” at Marcus & Millichap but was drawn to the Colliers opportunity because of the firm’s “entrepreneurial spirit” and a chance to re-team with Cooper, with whom he has “a strong relationship” at Marcus. Since 2003, Colliers estimates, Baker and Cooper have closed on more than 25,000 apartment units valued at more than $1 billion with local and national clients. Multifamily has been a hot category for a few years in Cleveland and nationally, and Cooper said “demographics just favor” continued investment in the sector. He said downtown Cleveland projects such as The 9 and Residences at 1717 underscore the momentum. Baker is the 30th hire at Colliers since Hurtuk re-established the firm’s office here in 2012. Hurtuk said Colliers also has a multi-
It’s fitting that a Bitcoin documentary would hold a red carpet event on a street nicknamed “Bitcoin Boulevard US.” The Cedar Lee Theatre in Cleveland Heights will host a party to celebrate the opening of “The Rise and Rise of Bitcoin” on Oct. 3. The theater will show the movie through Oct. 9. Why Cleveland? Well, a long list of merchants near the theater on Lee Road accept payment in the form of Bitcoin — a form of digital money that isn’t controlled by a central government. They’ll be offering Bitcoinrelated deals throughout the week. Plus, the distributor, Gravitas Ventures, opened a downtown Cleveland office about a year ago. The company — best known for distributing “Sound City,” a music documentary produced by rock star Dave Grohl — employs 15 people, including four here. Gravitas normally only shows its movies in a few big city theaters, since it mainly distributes movies digitally, through video-on-demand services. But president Michael Murphy figured a local premier was in order, given that he lives in a suburb where so many businesses embrace Bitcoin. Local Bitcoin consultant Nikhil Chand, who encouraged the businesses to do so, is promoting the event. “We can’t imagine a more appropriate place on Earth for the launch of this compelling film to take place,” Chand said. Gravitas embraces Bitcoin, too: The company paid 500 BTC, an amount worth more than $200,000 as of Friday, Sept. 19, to buy the distribution rights for the movie. And you can pre-order it using Bitcoin — or regular money — at BitcoinDoc.com. — Chuck Soder
CONTRIBUTED PHOTO
Gina DeSantis Ceramics in Lakewood is a finalist in the “wildcard” category of a Martha Stewart competition. family unit in its Columbus office and is looking to add one in Cincinnati. — Scott Suttell
Award nom shows Lakewood ceramics artist is kiln it Gina DeSantis Ceramics in Lakewood is a finalist in the 2014 Martha Stewart American Made Awards in the “wildcard” category. The awards program honors makers, small business owners and creative entrepreneurs in the fields of crafts, design, food and style. DeSantis says she began clay work 14 years ago as an undergraduate. She earned a graphic design degree but eventually abandoned that in favor of becoming a full-time potter. DeSantis graduated in 2006 from Kent State University with an MFA in ceramics and later established a studio in the Screw Factory in Lakewood. Her work has been sold in places including Cleveland Flea, The Banyan Tree and the Urban Orchid. Online voting for the awards takes place through Oct 11. The nominees are at www.marthastewart.com/americanmade/n ominees. You can vote for Gina DeSantis Ceramics at tinyurl.com/k7bta49. — Scott Suttell
MILESTONE
BEST OF THE BLOGS
COMPANY: Moskal Gross Orchosky Inc., Beachwood
Excerpts from recent blog entries on CrainsCleveland.com.
OCCASION: Its 75th anniversary
Ohio is home to two of the top 10 utility economic development teams in the United States, according to the latest annual ranking from Site Selection magazine. Akron-based FirstEnergy Corp. and Columbus-based American Electric Power both made the list, which is presented alphabetically. Chief among the criteria for selection: analysis of corporate end-user project activity in 2013 in those utilities’ territories, based on data from Site Selection’s New Plant Database and from utility and community reports. Site Selection said FirstEnergy and its 10 utility operating companies “helped corporate end users invest nearly $3 billion and create a planned 7,792 jobs across its service territory of 6 million customers amid a population of 13.4 million across six states. Projects came from such investors as Amazon and Bayer in New Jersey; Volvo in Maryland; BASF, Sherwin-Williams and H.J. Heinz in Ohio; and Albemarle and Procter & Gamble in Pennsylvania.”
The firm, which is Gross known as MGO, got its start in 1939 as Eugene M. Klein & Co. MGO claims Klein was “one of the first companies in the country” to offer retirement plans. In 1990, the Klein firm joined forces with Jack Moskal’s company, Capital Planning Corp., a designer and manager of investment portfolios for both retirement plans and individual and corporate investors. The two companies rebranded as Moskal Klein. The firm later became Moskal Gross Orchosky Inc. in 2003 to reflect the current owners: CEO Ronald S. Gross, vice president Michael B. Moskal and vice president Paul J. Orchosky. Together they lead a team of Certified Public Accountants, retirement plan professionals and investment advisors with decades of combined experience in retirement planning and wealth building. “At MGO, we strive to improve our clients’ lives by building wealth in their retirement plans and personal investments,” Gross said in a statement. He said the firm operates from a philosophy that “the definition of wealth is different for every person. Much of our success can be attributed to our focus on the individual.” The firm services both individuals and companies. “We provide one place where business owners can go to take care of all their wealth management needs, both personally and for their company,” Gross says. For information, visit www.mgo-inc.com.
Powering development
Adding some sizzle Progressive Field has some of the best onfield action in baseball — at least when it comes to mascot races. The Wall Street Journal went to the videotape to try to determine which Major League Baseball teams boast the fastest mascots. The paper said it “examined a random sample of video of nearly every team’s mascot race and clocked the winning time in each. Then, using Google Earth software and satellite images of every ballpark, we measured the approximate length of every race, using time and distance to calculate the winning pace in each race.” Topping the list: The Milwaukee Brewers, whose iconic sausage mascots travel at 20.3
feet per second. Coming in at No. 6 were the Indians, whose mascots clocked in at 15.1 feet per second. “What Cleveland’s hot-dog derby lacks in cleverly conceived mascots (Ketchup, Mustard and Onion) it makes up for with aerodynamic costumes,” according to the story. “The buns may not look thin, but compared with what other mascots have to run in, they’re like the controversial full-body suits worn by Olympic swimmers in 2008.”
Better call Saul A Cleveland gynecologist has made some progress in his legal fight against Apple Inc. on behalf of “Breaking Bad” fans. NationalLawJournal.com reported that U.S. District Judge Edward Davila in California ruled that plaintiff Noam Lazebnik “had sufficient standing to proceed with a trimmed-down version of his suit alleging Apple engaged in false advertising in its offer for viewing the Emmy-winning show’s Season 5, its final one, on iTunes.” But in his order, the judge “also threw out two of Lazebnik’s claims, ruling that Lazebnik failed to back up allegations that the company breached a contract or violated California’s Consumers’ Legal Remedies Act,” according to the story. The website said Lazebnik “contends Apple pulled a fast one on consumers in 2012 by changing the definition of ‘full season’ after he and others purchased, for $21.99, a ‘Season Pass’ for the final season of the show, which was produced and marketed by AMC Networks Inc., and sold through Apple’s iTunes platform.” Instead of getting what he understood would be the full 16 episodes of Season 5, Lazebnik said, he got only eight. When he complained, the Cleveland gynecologist said, “Apple informed him that Season 5 included only the first eight, while the last eight episodes were a separate, “Final Season,” to be aired in 2013.”
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