Crain's Cleveland Business, July 24, 2023

DIVERSIFYING DEVELOPMENT

New program aims to give a boost to small-scale minority real estate developers

BY MICHELLE JARBOE

Anew program aims to boost the ranks of minority real estate developers in Cleveland — and to give them the tools, from money tonancial know-how, to put shovels in the ground.

e application portal opened last week for the Cleveland Equitable Development Initiative, an eight-month program aimed at small-scale developers who are looking to grow. It’s the local version of a curriculum that debuted in Detroit in 2018 and that has since expanded to Dallas, the San Francisco Bay Area and the region around Washington, D.C.

Cleveland Soccer Group goes for the goal

Association advances stadium plan and eyes 2026 NWSL bid

BY JOE SCALZO

If Cleveland is going to successfully pitch for women’s soccer, it needs a soccer pitch.

e Cleveland Soccer Group (CSG) is getting closer to that goal.

Michael Murphy, the co-founder and CEO of the CSG, said his group has made “signi cant progress” on its stadium plan, a crucial element in its bid to land a National Women’s Soccer League (NWSL) team in 2026.

e CSG also is expanding its ownership group, something Murphy believes will be “well-received” by the league.

AKRON

Mayor Horrigan ghts U.S. EPA to get out of huge and costly sewer overhaul mandate.

PAGE 4

Local nonpro ts Cleveland Development Advisors and Village Capital Corp. have teamed up on the program with Capital Impact Partners, a nonpro t lender based in Arlington, Virginia. ey’ll select 12 to 15 developers for their rst class, which will run from October through May.

See REAL ESTATE on Page 16

Suit against CrossCountry Mortgage moves forward

Lender ordered to provide names of salespeople who may opt into case for unpaid wages, overtime

BY JEREMY NOBILE

A federal judge has ordered CrossCountry Mortgage (CCM) to provide names and contact information for current and prior salespeople who may be eligible to opt into a putative class-action lawsuit that accuses the company of failing to pay employee wages, including overtime.

It’s unclear how many people may be eligible to join the suit, but it could be a lot. e nationwide lender has more than 7,000 employees in nearly 600 branches

across all 50 states, according to the company. e related case, which is being adjudicated by Judge Dan Polster, was led on behalf of plainti Paul Lundholm of New Jersey on Feb. 14 in the U.S. District Court for the Northern District of Ohio. e suit alleges that Cleveland-based CCM violated both federal and state laws when “knowingly misclassifying” salespeople as exempt from overtime and minimum wage requirements.

RESTAURANTS

Rosewood Grill celebrates a decade in Strongsville, reopens after renovation.

PAGE 10

The new Addis View Apartments loom over a house in the Hough neighborhood, on Cleveland’s East Side. A new program aims to help more minority developers get projects moving in long-overlooked city neighborhoods.

Angel City FC defender Sarah Gordon controls the ball while under pressure from North Carolina Couger forward Olivia Wingate in a July 9 game. Angel City FC joined the NWSL last year. The Cleveland Soccer Group hopes to land a team in 2026. | ALAMY

NASA Glenn key partner in developing ight advances

KIM PALMER

e prospect of returning to the moon and eventual commercial space ight garners the biggest headlines, but NASA Glenn Research Center’s work on the next decade of advances in commercial air travel is expected to be just as groundbreaking — and for many, more relevant.

e National Aeronautics and Space Administration, and specically its Glenn Research Center in Cleveland, has helped develop, study or test just about every signi cant aeronautical development aimed at making air travel cleaner, safer, faster and quieter since the industry started.

NASA’s predecessor — the National Advisory Committee on Aeronautics (NACA), established in 1915 — was created solely to advise and advance the country’s aviation industry. It was not until well after World War II, in response to concern that the Soviet Union was exceeding American e orts in space exploration, that Congress passed the National Aeronautics and Space Act of 1958, forming the civilian space agency.

Aeronautics, though, remains a big part of the agency’s work.

“NASA is the National Aeronautics and Space Administration, and we are often called the space agency, but the preponderance of our budget and much of the work we do is in aeronautics,” said NASA Glenn director James Kenyon. “When the aviation industry rst started, we were the cutting edge. Private companies struggled to develop and establish a viable commercial industry back then, and NACA played a key role in helping them develop a healthy market.”

NASA has grown into an agency with 10 centers across the country and a $27 billion annual budget. Each site has a unique role, specialty and set of core competencies that contribute to the agency’s aerospace and aeronautical missions, Kenyon said.

Glenn has more than 500 specialized research and test facilities, including full-scale engine, ight, materials and structures testing; and wind tunnels used to accurately simulate harsh ight conditions. ose facilities have enabled the agency to work with industry and academia to develop decades of aeronautical technology advances.

e Glenn research and testing facilities, Kenyon said, are key to solving what he calls some of the most pressing problems of ight.

“We do a lot of aeronautics research these days in sustainable aviation, electrified propulsion, hybrid propulsion, in an effort to create really efficient jet engines,” he said.

NASA steps in and handles the expensive research on the front end that requires testing instruments and infrastructure that corporations don’t have and can’t a ord. It also works on science that will not be commercially viable or deemed safe by the Federal Aviation Administration for decades.

“We don’t do product development,” Kenyon said. “We go after the problems that industry has a hard time funding: the big-ticket research that might be hard to explain to a corporate board, (or) high-risk pro-

grams that are a bit too much of a stretch for some businesses.”

NASA then can hand o that work — the intellectual property portfolio, including patents that the government agency holds and licenses — to industry.

Kenyon said NASA’s mission is to drive investment in areas that will promote the health of the overall industry and advance causes for the public good, such as reducing carbon emissions.

revenues are projected to be more than $800 billion in 2023, a nearly 10% increase from 2022, though still below pre-pandemic levels.

Technology development and implementation cycles are long, and it’s easy for the average air traveler not to be aware of decades of research and partnership that go on between the private sector and NASA.

creased fuel usage was the main driver behind NASA’s work. After a long cycle and decades of investment in research, he said, more commercial breakthroughs are emerging in ultralight and composite materials and alternative fuels.

“We give non-exclusive licenses to companies, and they can gure out how to use it in an application,” Kenyon said. “ ey can license our patent while as the same time another company can also license the same technology, and use it in di erent applications.”

The future of ight

Since the inception of ight more than a century ago, single-prop engines have given way to supersonic jets, and more than 100,000 commercial ights now take o around the world every day. Aviation-industry

In 2008, the agency began to lay out a plan to advance the next generations of advancements in aeronautics, creating what’s called NASA N+2, which “envisioned aircraft two generations beyond what was currently ying.”

e strategy includes innovations with sustainable fuels; new material and engine design; and subsonic and hypersonic travel.

Kenyon said a push by the airlines to save operating costs through de-

e basic science of innovations making their way into new aircraft design now have been worked on and tested at NASA facilities for at least a decade, said Bryan Schmidt, assistant professor in mechanical and aerospace engineering at Case Western Reserve University.

“ ere are companies, like Rolls Royce or GE, that always have some research going in the back burner that you don’t necessarily know about,” he said.

Schmidt, who studies materials and how they react under stress, said the work NASA is doing could change travel in a few signi cant ways.

“Right now, a passenger airplane is basically like a big tube with wings stuck on it,” Schmidt said. “With composite materials, we don’t have to make airplanes like that anymore. Before, we used a big sheet of aluminum, rolled it and welded, but with composites — especially with these new manufacturing techniques (like) 3D printing — you can kind of make whatever geometry you want. I would expect sometime in the next couple of decades, we’ll start to see some just radically di erent-looking aircraft designs.”

Schmidt also is encouraged about the prospects of success of NASA’s X-59 aircraft, which is designed to achieve supersonic ight without the disturbing sonic boom that previously doomed that air travel commercially.

“We might nally see, within my lifetime, commercial supersonic ight again,” said Schmidt, referring to the demise of the Concorde.

“ ere’s a start in the process of designing a quieter craft with NASA technology which can cut a ight from Cleveland to Los Angeles to about two hours, and that just makes the world smaller.”

Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouro ve

NASA Glenn is part of the research into the X-59 aircraft, designed to y supersonic speeds while reducing the loud sonic boom. NASA GLENN RESEARCH CENTER

“WE GO AFTER THE PROBLEMS THAT INDUSTRY HAS A HARD TIME FUNDING: THE BIG-TICKET RESEARCH THAT MIGHT BE HARD TO EXPLAIN TO A CORPORATE BOARD, (OR) HIGH-RISK PROGRAMS THAT ARE A BIT TOO MUCH OF A STRETCH FOR SOME BUSINESSES.”

—James Kenyon, NASA Glenn director

The Glenn Research Center in Cleveland has helped develop, study or test just about every signi cant aeronautical development aimed at making air travel cleaner, safer, faster and quieter since the industry started. | NASA

Something new is brewing in downtown Canton

Brew Kettle owner Brian Weber to open restaurant and bar in the former Canton Brewing Co. building

DAN SHINGLER

Canton’s getting a new brewery, to be followed by some luxury apartments, in the midst of the city’s innovation district and just steps away from downtown events center Centennial Plaza that was completed in 2021.

e old Canton Brewing Co. building will soon have a new name on the door. Brew Kettle, which has its main brewery in Middleburg Heights and ve other locations across region, will open a 12,000-square-foot brewery, restaurant and activity center in the former Canton Brewing building at 120 3rd St NW, said Brew Kettle owner Bryan Weber.

“ is is the city’s arts district, so we’re going to rebrand it as e District Brewing Co.,” Weber said as he gave a tour of the place on Tuesday, July 11.

Weber said he paid $1.7 million for the building, which was the asking price, but still gures he got a deal.

Not only is the building in good condition — it looks like it just closed for the night and is ready to reopen inside — but it already has a major tenant in the form of a Rite Aid pharmacy on the rst oor.

e restaurant and brewery that

Canton Brewing left behind is also in great shape, Weber said. It includes two fully equipped kitchens and an entire brewery’s worth of fermentation tanks and other necessary equipment, plus additional brewing equipment still in its shrink wrap. It will be all he needs to start brewing at the site, and then some, Weber said.

“ ere was a lot of expensive equipment here already,” Weber said, pointing out an $85,000 mixer that is still in the kitchen and in great condition.

e Brew Kettle is using the site now for some outdoor beer sales, including for Canton’s recent First Friday events and the Stark County Italian-American Festival held earlier this month.

Weber’s got far bigger plans, though.

He said he’ll put an 800° Woodred Kitchen — another company he owns — into the site to provide most of the food.

Downstairs, he’ll build an activity center with games and other activities, geared toward a younger clientele, with some additional cooking capacity for wings or special-event dining. at room itself is historic, in that it’s the room where George Halas held some of the meetings that led to

the formation of the National Football League — and Weber has photos of Halas signing papers there to prove it on display.

Weber’s now trying to gure out how to update the place while still paying respect to its heritage. When he paces the oors of his new building, he’s literally looking down and asking himself if he should replace the old oor with something new or repair it to preserve its historic value.

“I want to preserve the history,” Weber said. “But Gen-Xers and mil-

lennials want activities, too.”

Weber gures he’ll spend about $2 million renovating the building, but most of that won’t be spent on the rst oor or the basement where the brewery and restaurant will be located, he said, because they’re in very good shape.

Instead, most of that money will go toward converting the 24,000-squarefoot second oor, which is now vacant o ce space, into nine apartments.

“It will probably be 80% in residen-

tial and 20% into what’s downstairs. I’ll probably put $400,000 into the brewery and activities center,” Weber said.

Outside, he plans to build a 14-foot-by-60-foot patio on the sidewalk for outdoor dining, including from two food trucks Weber said he recently purchased. en, there will be the beer itself. Weber said he’s thinking he’ll need a variety of options, including some low-carb beers for younger patrons, along with other Brew Kettle favorites like White Raja Indian Pale Ale.

As for what will be brewed on-site, Weber said he’s considering devoting the brewing operation to “sour beers,” which aren’t really sour, but are aged in old whiskey barrels for as long as two years.

e new brewery and restaurant will come online before the apartments upstairs.

Weber said it will likely take him 18 months to build out the apartments once construction begins, so they might not be on the market until late 2024 or 2025.

But he plans to get the brewery and restaurant opened much sooner.

“To get it done by September would be great,” Weber said. “But probably it will be after that and sometime in October.”

Dan Shingler: dshingler@crain.com, (216) 771-5290

Brew Kettle owner Bryan Weber with some of his new gear at the former Canton Brewing Co. building in Canton. | DAN SHINGLER/CRAIN’S CLEVELAND BUSINESS

City takes on EPA over sewer mandates

BY DAN SHINGLER

He might be a lame duck politically, but Akron Mayor Dan Horrigan is going out like a war eagle.

His adversary is nothing less than the federal government — the U.S. Environmental Protection Agency and the Department of Justice, to be speci c.

Horrigan, a Democrat, said Akron values clean water as much as any city. But it’s done rolling over to demands that it pay hundreds of millions of dollars for sewer improvements it no longer believes are necessary or cost-e ective. He said he has informed the U.S. EPA that Akron wants out of the consent degree it signed in 2014 with the feds, requiring its sewer overhaul.

e city has spent more than $1 billion so far trying to satisfy federal mandates that at one point were projected to cost Akron more than $1.5 billion, before it came up with some creative ways to get those costs down. At a news conference on Tuesday, July 18, held along the Towpath Trail north of downtown near the Little Cuyahoga River, Horrigan said that’s enough and drew his line in the sand.

“Akron has done our part to clean up the waterways,” Horrigan told an audience of media, fellow politicians and supporters. “ is is our time to rally together to say enough is enough.”

Behind him was a tree-covered hillside where the U.S. EPA is demanding that Akron build a giant “enhanced high-rate treatment facility,” or EHRT, to treat any over ow from its sewers in the event of particularly heavy rains.

Horrigan, who has been working with the EPA and his own engineering department to satisfy federal sewer requirements since he took o ce, is saying no.

e facility would cost too much, would be an eyesore for nearby residents and users of the towpath, and isn’t necessary, said Horrigan and others who came to support him.

With all but two of the 26 federally mandated components of the entire project completed, Horrigan said Akron has gotten the results it and the Cuyahoga River watershed need.

“We’ve completed 24 of 26 projects, and we’re preparing for the 25th to begin in a couple of months,” Horrigan said. “We’ll be treating and capturing an astounding 99%” of sewer over ow.

And with $1 billion spent, Akronites already are paying for this on their sewer bills, and they don’t need those bills to go up another 20% to fund the EHRT, he said.

“ is is an incredible accomplishment and one we can all be extremely proud of,” Horrigan said. “But it’s been unbearably expensive.”

Horrigan and his administration hope to garner support among other communities, civic leaders and area residents. Akron is asking other communities to pass resolutions supporting its request to the EPA that it be allowed to substitute alternative approaches to reducing sewer runo that the city says would be far less expensive.

ose alternatives include reducing discharge by treating wastewater at the city’s existing facility on

Cuyahoga Street; adding sewers to the village of Peninsula in the Cuyahoga Valley National Park; working to provide sanitary sewer service to the Sawyerwood neighborhood in Spring eld Township; and addressing sewer over ows to Spring eld Lake from the village of Lakemore.

Akron says those four projects would cost only about a quarter of the cost of the proposed EHRT, or a little more than $50 million.

Horrigan’s event attacked the issue from three sides: how it a ects Akronites in the wallet; the diminishing returns the investment in the EHRT would bring; and whether the additional work is even needed from an environmental standpoint.

Akron City Council president Margo Sommerville helped him on that rst point and said Akronites simply can’t a ord the additional expense, especially in a time of high in ation when other costs of living have been rising quickly.

“I can’t help but think about our residents and how much they are already paying for this consent decree,” said Sommerville, who referred to the EHRT as a “massive and useless facility.”

“Asking Akron residents to pay even more for something that ultimately isn’t even necessary is simply too much. ... We need to be able to focus on the concerns of our residents, like public safety and roads,” Sommerville said. “Let the EPA know that Akron isn’t going down without a ght.”

Greater Akron Chamber president Steve Millard agreed the return on investment for the EHRT is not worth it.

“ is additional $209 million (for the EHRT) is going to give us 1% more capture (of sewer over ow). ... at doesn’t make a lot of economic sense from our perspective.”

Emily Collins, a strategic adviser to Horrigan who said she has spent 18 years working on environmental causes, also said the added expense is not worth it, especially when compared to the impact that money could have elsewhere, including on other sewer projects.

Collins compared the cost and results expected from the EHRT with those of the sewer project’s big Ohio Canal Interceptor Tunnel, a 27-foot diameter pipe that the city installed at a cost of $315 million in 2021 as part of its sewer overhaul.

at tunnel controls runo at a

cost of 68 cents per gallon, Collins said.

“For the EHRT that would be behind me, that would cost us $3.37 per gallon,” she said at Tuesday’s event.

Even the Ohio EPA is siding with Akron on this one.

“Ohio EPA supports Akron’s request to seek a change to the consent decree,” said Katie Boyer, Ohio EPA’s deputy director of communications and outreach, via email.

She added, “ e agency supports an alternative approach because latest modeling shows that the originally planned High-Rate Treatment (HRT) system would only activate roughly three times per year at a cost of over $208 million. An alternative system will be more cost-effective due to a decrease in volume and over ow events. e alternative approaches involve more meaningful projects that will address discharges that occur 365 days per year (as opposed to the occasional wet weather events).”

at dovetailed with Horrigan’s point that the city, as of Tuesday, has not experienced any runo that would have activated the EHRT in 498 days.

Ohio EPA agrees that Akron already has achieved a high level of control over its runo , Boyer said.

“Even without building the HRT, Akron will be controlling 99% of its wet weather ow, an extremely high level of control,” she said. “ e modi cation to the consent decree would be seeking to change the performance standard from zero untreated over ows in a typical year to a plan that would allow some overows to be discharged untreated. is will be similar to other major combined sewer over ow communities like Toledo and the Northeast Ohio Regional Sewer District.”

But Akron’s not out from under its mandated project costs, which it previously agreed to, just yet. e city has only picked a ght with the feds; it hasn’t won it.

To do that, Horrigan is counting on support from surrounding communities and what he hopes will be a vocal citizenry in his own town.

“ ey are now on the clock to respond to us within 45 days,” Horrigan said of the U.S. EPA. “And that’s when I’m calling for community support. I’m calling on all of you to lend your voice to this ght.”

Dan Shingler: dshingler@crain.com, (216) 771-5290

Akron Mayor Dan Horrigan at a July 18 press conference addressing concerns over the city’s sewer project costs. | CONTRIBUTED

Rustbelt Reclamation wants its custom furniture to stand the test of time

Megan November wants to make products that last.

As president and owner of Rustbelt Reclamation, November is passionate about making high-quality products that people can use for a long time.

“ ere’s so much more to sustainability than recycling something,” November said. “It is giving someone a product that will not end up in a land ll. It’s considering all of your sources of where your materials come from. It’s employing people from our area. e list goes on and on.”

Rustbelt Reclamation in Cleveland makes custom furniture, particularly tables, desks and cabinets for markets like hospitality. e small manufacturer doesn’t have a regularly running line, like a more typical furniture retailer, but instead works with each customer on a case-by-case basis, deciding what material will work best for a particular use or climate, November said.

e Cleveland company’s roots go back to the 1970s, when Joe Frisse started a furniture maker that primarily served libraries and universities in the Great Lakes area. Frisse in 2011 sold that company to a family that rebranded it as Rustbelt Reclamation two years later. November joined the company the following year, and in 2018, she bought it from the Lincoln and Horsburgh brothers.

Today, November is the sole owner of the woman-owned and -operated manufacturer. It employs 17. And while November declined to share annual revenue, she noted that it had grown signi cantly since she took on ownership. She expects that growth to continue, though she’s careful to balance expansion with the quality of work the company can produce. is conversation has been edited for length, grammar and style.

— Rachel Abbey McCa erty

` When the previous owners came to you with the idea of buying Rustbelt Reclamation, why was that something you wanted to do?

I know that I didn’t set out to necessarily be a business owner, but there isn’t another business out there that is more perfect for what I love and what I want to do with my career. I’ve been very fortunate to receive some nice recognitions from organizations and, at times, be called an entrepreneur, and I almost feel undeserving of that because I’m not the founder of the company. But I did take somebody else’s vision and I’m growing it in a way that I’m not sure it would have otherwise grown. It’s hard for me to toot my own horn, but I think I was really able to see where all the opportunity was with this business that maybe we were missing before, but now, we’re realizing. And that is generating much more success for us.

` Tell me about that growth plan.

So what we’ve really come to learn is that our team is able to provide not just a very high-quality product but service that matches it. The custom furniture process is very di erent than shopping from a retailer. And we have a team that can execute just about anything. So we’re able to provide this really customized product, and there are so many markets out there that want it right now. To grow the business, we needed to start looking at all these other markets that have a need for highquality, highly customized furnishings. Because the business was started looking at universities and libraries, and really, the biggest markets today are hospitality — hotels and restaurants,

especially post-COVID, that is our largest market. The senior living market is huge right now. Until recently, multifamily developments were also a great market for us. And I say until recently mostly because as we’ve seen interest rates increase, the lending’s been tough for those developers. But essentially, we build a product that ts into an unlimited number of markets, and so we have this ability to be super nimble and follow the work.

` What is it that you enjoy about your work?

For me, I’ve always enjoyed design in all aspects of life, but really speci c to furniture and to furniture that is very well-built and that functions as it should. I really get frustrated with poor design, and I hate that we live in such a disposable world. Here in Ohio, we have access to some of the most beautiful hardwood a woodworker could get their hands on. I mean, it is a huge advantage to us, being here. So, taking the time and putting the thought into what materials we’re using, and how we’re constructing a piece, to give a customer something that could last their entire life, for me, is very rewarding. And then, not only to give them a high-quality table, but something that they’re excited to talk about. And that they can tell their friends and family that it’s their one-ofa-kind design, and it came from material that we know the source of, and we’re not importing exotic woods. We’re proud to give them a product that we know is well-built and will serve them well over the years.

Rachel Abbey McCa erty: (216) 771-5379, rmcca erty@crain.com

This table in the Homeplate Club at Progressive Field uses wood salvaged from the Columbus Road Lift Bridge in Cleveland. RUSTBELT RECLAMATION PHOTOS

Megan November is the president and owner of Rustbelt Reclamation.

Strikes. Two?

is is shaping up to be the summer of U.S. labor discontent.

Bloomberg, for instance, noted that labor data it has collected show that even before the more than 100,000 members of the actors union SAG-AFTRA went on strike July 14, “both the number of strikes and workers on strike were up in the rst half of this year.”

e worker numbers could go much higher, quickly, if management can’t strike deals in current negotiations with unions representing United Parcel Service Inc. and Detroit’s Big ree automakers — Ford, General Motors and (here’s the tricky one) Stellantis.

A strike by the United Auto Workers, which represents about 150,000 hourly workers at the Big ree, would be felt disproportionately in still-auto heavy Northeast Ohio. A Teamsters strike at UPS, a behemoth that delivers goods that amount to about 6% of U.S. gross domestic product, would be felt everywhere.

Negotiations on this scale are complex and have moving parts that aren’t readily apparent to those on the outside.

e UPS situation is coming down to the wire, as its labor deal with the Teamsters is set to expire Aug. 1. Both sides have gotten increasingly testy as negotiations have dragged on.

ere have tentative agreements on some key issues, including air conditioning in trucks and the elimination of a dual wage system that created a lower-paid category of worker, but agreement on broader wage issues has been elusive. e negotiations take place against a challenging environment for UPS, which is seeing package demand fall as the pandemic wanes and people spend less time working from home.

e stakes are high, as the contract a ects 340,000 workers. If there is a strike at UPS, it would be one of the largest against a single private employer in U.S. history.

Time is less of the essence in the UAW/Detroit ree negotiations, where contracts don’t expire until Sept. 14. In June, UAW leaders said they want stronger job protections against plants closing, higher wages, an end to tiered wages that pay some employees less for doing the same job, and cost-of-living increases. e union has a relatively new president, Shawn Fain, who’s looking to make a mark with his rst deal

— and has indicated he’s willing to have strikes at all three automakers if that’s what it takes to get it.

What’s driving the increased friskiness of organized labor? A blend of economic and technological factors, with a dash of COVID change. As Bloomberg put it, “ e pandemic years have, in some ways, re-energized American labor. Emboldened by tight labor markets and agitated after shouldering new risks, workers notched a series of surprising victories at some of the most prominent U.S. companies. Now, wary of soaring corporate pro ts as major technological changes threaten to upend their industries, unions are ready to test their clout.”

Labor historian Nelson Lichtenstein of the University of California, Santa Barbara told Bloomberg that the economy could be in for “the biggest moment of striking, really, since the 1970s.” Of labor unions, he added, “ ere’s an ambition here that I think is new. ey’re on the o ense.”

We’re not picking sides here, other than to hope that in both cases, deals can be struck that unions and the companies can live with, and that avert strikes that could cause widespread economic disruption at a time when the economy is showing some hopeful signs after months of recession warnings.

In ation, while still high by recent standards, has cooled. A LinkedIn survey of its members last week showed workers’ con dence in their ability to get or hold a job rose to its highest level since late March. at tracks in a rise in the quits rate, as more than 4 million workers left a job in May, the most since the start of 2023 and a sign people are con dent in employment prospects.

Morgan Stanley on Friday, July 21, made a substantial upward revision to its GDP forecast. Its economists now expect GDP to grow 1.3% on average in 2023, from an earlier forecast of a 0.6% rise. e revision was based on what the rm sees as continued strength in the industrial sector and more public investment in infrastructure.

ere’s a lot riding on these giant labor talks. We like the approach articulated by Ford CEO Jim Farley in a Detroit Free Press opinion piece, where he wrote that negotiations “should be about collaboration not concessions — creative ideas, not confrontation.” Would that it were in all cases.

PERSONAL VIEW

Box Bill’ leaves consumers open to more data breaches

BILL

At a time when hard-working Ohioans are already feeling the nancial pinch from in ation, Congress is considering a awed bill that would put consumers at risk.

S.1838, the so-called Credit Card Competition Act, aims to place government mandates on consumers’ credit card choices under the guise of “increasing competition.” Instead, this legislation would hurt consumers and small businesses, while bene ting big box retailers.

While retailers reap the bene ts of credit cards — immediate payment, protection from fraud, and often larger purchases by consumers — they do not want to pay the cost of accepting credit cards. Interchange fees help defray, but do not cover, the cost of fraud detection, credit monitoring, and fraudulent purchase protection that makes consumers and merchants whole when bad actors attack.

And data security is a signi cant concern. In 2022, more than 422 million individuals su ered data breaches. Interchange fees help keep credit cards safe from would-be hackers, facilitate a secure payment between a small business and consumer, and ensure both parties are not responsible for fraudulent purchases.

Under the guise of competition, this bill would give retailers the ability to choose card payment processing systems based solely on price. Retailers could choose the cheapest option, with no requirement to keep consumers’ data safe. e legislation would eliminate funding for credit card rewards programs, weaken cybersecurity protections and increase fraud. is is certainly not a win-win for consumers, for small businesses, or for small nancial institution card issuers, such as credit unions and community banks.

In addition, interchange fees support a ordable access to credit. Consumers rely on credit cards to build credit and gain access to funds. Having access to safe, a ordable credit at any small business that accepts credit cards is very important to the majority of consumers.

is system also helps Main Street businesses build their customer base at a time when fewer people carry cash and most count on being able to use their credit cards wherever they go. Plus, the card programs o ered by nancial institutions allow small businesses to outsource credit risk and compete with large retailers without operating their own card programs. Credit unions and community banks are small businesses, too, offering needed products and services to our local businesses — including credit card programs.

History has proved that the so-called “exemption” for credit unions and community banks in this legislation will not work. e debit card interchange bill passed by Congress in 2010 resulted in a 30% decrease in interchange revenue for smaller nancial institutions, which were supposedly exempt from the legislation. Considering that interchange already does not cover the costs for credit union credit card programs, the likely result of losing 30% of

See DATA, on Page 7

Executive Editor: Elizabeth McIntyre (emcintyre@crain.com)

Managing Editor: Scott Suttell (ssuttell@crain.com)

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

Burke is chair of the Ohio Credit Union League and president and CEO of Day Air Credit Union which serves over 50,000 residents and businesses in Ohio's Miami Valley.

‘Big

BURKE

IN 2022, MORE THAN 422 MILLION INDIVIDUALS SUFFERED DATA BREACHES.

PERSONAL VIEW

Onboarding beyond the rst day

DANIALLE LYNCE

Remember that rst day of elementary school? Each year, heading into school with a tinge of sadness at summer’s end, but the excitement of seeing your friends, nding your classroom, and cracking open that box of new crayons.

First days were fun for the teachers, too (or so they made it seem). Welcome signs and name tags on desks, colorfully adorned doors, and uplifting messages about learning together. As kids, we likely overlooked the effort it took to create a welcoming environment and the attention required to set the stage for a successful school year. As adults, we shouldn’t overlook the importance of creating the stage for our new hires.

Whether it is an employee’s first day at the company, or a current employee joining a new team, onboarding matters. Lots of time and attention is placed on recruiting and hiring the right talent, and we often overlook the importance of preparing a thoughtful onboarding plan beyond day one. The first few weeks on a new job are hectic for the new hire (and hectic for you, as you’ve been doing double work waiting for the new person to get there and take on the assignments).

Great onboarding should include a focus on helping the new hire:

1. Gain knowledge of the new company

2. Reinforce s/he made a good decision to join this team

3. Get information required to get up to speed quickly Invest in setting the stage for your new hire and you won’t be disappointed with their integration. Often, companies provide the minimum necessary to the new hire, then nd themselves frustrated in a few months when the new hire isn’t performing as well as expected.

Here are the elements of a great onboarding experience:

` Let the new hire know you are ready for them. Reach out in advance of the rst day. Communicate the hours the new hire needs to work, what they can expect, and most importantly, your con dence they will be a great asset to the team. Answer questions.

` Communicate to the team that the new hire is starting and how this will impact them.

` Prepare training for the new hire. Consider what the new employee will need to be successful, then supply that. is can include setting up email, providing access to shared drives, data and systems training (even if the new employee has experience in your system, it pays to train to your unique processes), preparing the workspace — everything from a laptop to o ce supplies — and policies and procedures for how the work of your company happens.

` Don’t forget the basics! Provide a facility tour and other steps to acclimate the new hire to the space.

` Spend time with the new hire. Schedule regular check ins with the new hire throughout the rst week or two. Some great questions to ask:

` How is your integration going so far?

` What’s been eye opening as you are starting here?

` What can I do to support you as you learn this new role?

` How can I be helpful to you?

` Set the new hire up to learn from coworkers and key stakeholders. Provide them time to see how others work and learn the interconnections between their coworkers’ contributions and the new role they are in. Assigning a peer mentor is a great way to help them get connected.

` Provide support over the rst several weeks and months. Schedule check ins at 30/60/90 days to hear what is and is not working for the new hire. is is a great time to provide feedback and o er additional training if needed.

By providing a great onboarding experience, your new hire will feel supported and well prepared to fully assume the responsibilities of the role. And, the organization will bene t from the new hire’s quick assimilation into the organization.

To all those who generously donated to The SIOR Foundation in memory of Bob Nosal, SIOR. The donations helped establish the Bob Nosal Award at Cleveland State University. This Award will provide Scholarships to the winners of the Cleveland State University Real Estate Competition.

While his time with us was cut short, we are thankful for your assistance to keep Bob’s legacy alive.

From Page 6

interchange fees could be devastating to both smallnancial institutions and small businesses. It would lead many lower-volume issuers — like credit unions and community banks — to end their credit card programs altogether, and the bene ts consumers value highly such as cash-back rewards. Only larger credit card issuers could withstand these losses and maintain needed security measures. is would give consumers and small businesses fewer choices and less community-focused terms while high-volume, highly pro table merchants reap the bene ts.

And as large retailers pay less in interchange, it will not mean more money in consumers’ pockets, either. When government-imposed interchange mandates on debit cards took e ect, letting big businesses keep more revenue, over 98% of merchants did not pass on any savings to consumers as promised. More than 20% increased prices.

Simply put, interchange fees are an important cost of doing business with credit cards.

Despite the significant consumer risk, big box retail groups want Congress to dismantle the interchange system by passing this flawed bill. If adopted, it will leave small businesses and consumers with fewer choices, less access to credit, and more data security risks.

Lynce is the HR director consultant for Clevelandheadquartered ConnectedHR, which also has an o ce in Austin, Texas.

BLOOMBERG

Admissions ruling could set back diversity e orts in legal eld

Diversity in the U.S. legal eld is atrocious. In Ohio, it’s even worse. And while myriad programs across the profession center on improving the representation and inclusion of women and minorities in attorney ranks, a recent ruling by the U.S. Supreme Court striking down race-based admissions in higher education stands to undermine those broader e orts.

“ e increasingly evident willingness of the (Supreme Court) majority to take on hot potato political issues combined with their obvious ideological bent meant that the ruling, unfortunately, was not surprising,” said Fred Nance, global DEI counsel for Squire Patton Boggs. “It was, nevertheless, deeply disappointing.”

Like the universities they belong to, law schools now are grappling with how this ruling ultimately impacts them and their goals for crafting diverse student bodies that feed the legal industry’s talent pool — though many institutions are reticent to talk about it just yet.

Other professions are in a similar boat. But these concerns are especially acute in the still largely homogeneous legal eld.

About 81% of U.S. lawyers are white, according to the American Bar Association.

In the Buckeye State, white attorneys compose 91% of the profession, according to data from the Ohio Supreme Court.

While diversity in the legal sector is poor, race-conscious practices have been credited with helping diversify law school matriculants: almost 37% of rst-year law students in 2022 were racial or ethnic minorities, compared with 28% a decade prior, according to the ABA.

If race cannot be explicitly considered in the admissions process, “We will likely see a substantial drop o in the diversity of incoming classes,” one Ohio law school o cial said.

ey pointed to states like California that have previously barred a rmative action policies at universities and the results that has brought.

wrote that “because (Harvard College’s and the University of North Carolina’s) admissions programs lack su ciently focused and measurable objectives warranting the use of race, unavoidably employ race in a negative manner, involve racial stereotyping, and lack meaningful end points, those admissions programs cannot be reconciled with the guarantees of the (14th Amendment’s) Equal Protection Clause.”

Yet, at the same time, Roberts notes that “nothing prohibits universities from considering an applicant’s discussion of how race a ected the applicant’s life, so long as that discussion is concretely tied to a quality of character or unique ability that the particular applicant can contribute to the university. Many universities have for too long wrongly concluded that the touchstone of an individual’s identity is not challenges bested, skills built, or lessons learned, but the color of their skin. is Nation’s

One law school o cial indicated that universities may take harder looks at applicant proxies, social-economic status and geography to make inferences that — although they may not always be correct — may create a more diverse pool of candidates.

Law schools

Crain’s reached out to deans and o cials at several law schools for insights about how the ruling impacts them or what they’re doing in response, including the Cleveland State University College of Law, Case Western Reserve University School of Law, e University of Akron School of Law and e Ohio State University’s Moritz College of Law. Each declined on-record interviews but provided either general statements themselves or recycled prior statements from university leadership.

Lawyers by race and ethnicity

Mixed race or other

Not provided

Native Hawwaiian or Paci c Islander

Native American Indian or Alaskan

Hispanic Asian Black White

Ohio

eld. And she noted that there are opportunities for comparable initiatives for even younger students with the goal of inspiring some to consider jobs as attorneys long before they’re even ready to apply to college.

Meanwhile, Big Law rms including Squire, Taft and many others have restated commitments to DEI.

91%

—Fred Nance, global DEI counsel for Squire Patton Boggs

It was 1996 when Californians voted against a rmative action via Proposition 209. While schools have apparently found some creative ways to promote diversity since then — which could provide some lessons for universities in a similar position now — a study from 2020 found that the number of Black and Latino people enrolling at California medical schools decreased in the aftermath of that decision. While there have been some improvements in diversity since then, the study deemed those gains “insu cient.”

“ ere is no reason to think this decision won’t have the same impact (on law schools),” the o cial said.

The decision

In the Supreme Court’s majority decision, Chief Justice John Roberts

constitutional history does not tolerate that choice.”

Nance is among the critics who take exception with how the court arrived at its decision.

“ e notion that we’ve reached the point where people of color in our country have received su cient opportunity to overcome the generational ravages of our well-known and shared history is belied by an avalanche of contrary data and life experience,” Nance said. “ e premise that there’s been enough leveling of the playing eld that it’s appropriate to move forward as if none of that history ever happened is premised upon something other than an even remotely objective assessment of the clear facts.”

Universities might still nd alternative paths to identifying diverse applicants.

ey’re all pretty similar. Some note that their school is still evaluating how they’re impacted, which may involve not just how admissions are handled but how certain programs are lled or how scholarships are awarded. Every statement acknowledges the court ruling and conveys a commitment to following the law. Some restate commitments to diversity, equity and inclusion.

Emily Janoski-Haehlen, dean for the University of Akron School of Law, said her school already has made changes to admissions applications to comply with the law, but she did not specify what those are.

‘Call to arms’

Mary Amos Augsburger, CEO of the Ohio Bar Association, said that while many bar members are “very disappointed” by the court decision, schools may be keeping quiet as they are still guring out exactly how they’re impacted.

One school o cial indicated this may be due to the political climate and concerns about lawsuits.

U.S. Sen. JD Vance, a Republican, recently sent a letter to 10 colleges and

81%

universities — including the Oberlin and Kenyon colleges in Ohio — to preserve records ahead of a possible probe into universities’ compliance with the court ruling.

Many schools already employ a more holistic approach to admissions, Augsburger said.

“But for those that were (using a race-conscious approach), things are going to be di erent, and we just don’t know what that means yet,” she said.

“I think everyone is still processing it.”

She framed the court ruling as presenting a time for the industry to “renew commitments to ensuring diverse student bodies” and to “come together and grow pipeline programs and other opportunities for access going forward.”

She highlighted programs such as Ohio’s Law & Leadership Institute, a college pipeline program for underserved high school students in Ohio’s six largest cities designed to expose them to potential careers in the legal

“Large rms like ours will need to be even more purposeful in nding e ective ways to identify, nurture and provide opportunity to students of color in order to continue the process of strengthening our organizations with diverse talent,” Nance said. “ at might mean, for example, taking measures like nding ways to interest and support talented minorities at the undergraduate level, employing an even more intense focus on the law students of color who are available, and developing e ective assessment criteria that will support hiring from beyond the places where large rms traditionally recruit. Other best practices to adapt and move forward will no doubt be developed and shared in response to this decision.”

Adrian ompson, chief diversity o cer for Taft and the rm’s Cleveland partner-in-charge, shares a similar point of view. He also highlighted guidance from school o cials that may come in several forms, including direction in crafting admission essays that help convey who they are as universities seek ways to identify potentially diverse candidates.

“Tell us about your life. How has race a ected you as a person? What setbacks have occurred? Or what have you gained from being a person of color? I think it will be incumbent upon guidance counselors and others to help make students make sure they express those views,” ompson said. “We have to gure out tools to help students to use this new test to their advantage.”

“ is is a call to arms for all of us,” ompson added, referencing the need to reinforce commitments to diversity, equity and inclusion within the legal industry. “And given what is going on in the world today, it is necessary.”

Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

JEREMY NOBILE

Two participants in the Ohio Law & Leadership Institute, a college pipeline program, chat with each other during the summer institute program. LAW & LEADERSHIP INSTITUTE

SOURCE: OHIO BAR AND AMERICAN BAR ASSOCIATION

“LARGE FIRMS LIKE OURS WILL NEED TO BE EVEN MORE PURPOSEFUL IN FINDING EFFECTIVE WAYS TO IDENTIFY, NURTURE AND PROVIDE OPPORTUNITY TO STUDENTS OF COLOR IN ORDER TO CONTINUE THE PROCESS OF STRENGTHENING OUR ORGANIZATIONS WITH DIVERSE TALENT.”

University of Akron trains inmates for careers in rubber, plastics

BY DAN SHINGLER

Some inmates in Ohio’s prison system are about to get an education in chemistry from the University of Akron.

Followed by a good-paying job in Grove City, Ohio, at a company called American Nitrile.

e university has partnered with the state’s program for working inmates, Ohio Penal Industries (OPI), as well as glove maker Summit Glove of Minerva and American Nitrile, near Columbus, to build a program that starts with education, moves on to real workplace production experience, and ends with employment.

e idea came out of the pandemic, when institutions such as prisons, hospitals and other agencies were facing a shortage of masks, gloves and other protective gear.

At the same time, the prison system had inmates who were eager for job training that would enable them to restart their lives. But they needed training and help to become quali ed, said Summit Glove president Jim Hull, who got involved in the new e ort early on while talking to state corrections o cials.

“ ey said, ‘When the incarcerated are done here, there’s not a lot of jobs to make license plates. ... We want something that’s going to be di cult to do and will create value after they’ve served their time,’” Hull said.

To be fair, OPI’s inmate programs make a lot of things, from license plates to mattresses and dentures, but the new idea Hull and OPI came up with was for them to make latex gloves, which are manufactured by dipping ceramic hand forms into liquid latex or another type of rubber, such as nitrile.

Hull agreed to help build a lab and production facility for OPI, but he didn’t think it was going to be as simple as teaching inmates to ip switches and attach hand-mold forms. He knew that a lot more goes into making a quality glove and doing it consistently, including some understanding of the chemistry involved.

Hull contacted Barry Rosenberg, a retired chemist who is a senior fellow at the University of Akron Research Foundation, with deep ties to the university.

Rosenberg spoke with OPI ocials, learned of the plan with Hull, and took it to the University of Akron, which needed students.

What resulted was a plan for the school to provide courses to inmates, paid for by the state. But unlike other courses, these will be entirely o site and online, because rules prevent inmates from mixing with the public while they are still serving their sentences.

About 40 inmates have signed up for the program, state corrections o cials report. At least one professor working with the inmates is excited about the opportunity.

Dr. Sadhan Jana, a professor at the university’s polymer science and engineering schools, said he has been working with OPI chief of industries Ann King on developing curriculum.

Students will start with training on how to make gloves, but they won’t stop there, Jana said.

“ at’s where the University of Akron is bringing it,” Jana said. “After a month of training to produce gloves, they won’t need any more training. We’re saying, ‘While you do that and become pro cient at making gloves, why not understand the science behind it?’ en we give you more education on math, writing and other things to get your degree. ... By the time they leave, they will probably complete enough to get an associate’s degree.” at coursework will be transferable if the inmate eventually decides to pursue a bachelor’s degree, Jana said.

What they learn will give them the opportunity to advance beyond the production oors, if they choose, once they are employed, said Hull, who already has found jobs for inmates once they are released.

Hull, via some intellectual property he transferred, is an investor in American Nitrile. at’s the company building a massive, 530,000-square-foot manufacturing plant in Grove City. e plant has four glove-dipping production line, each more than 900-feet long. ere eventually will be 12 lines, each with 32,500 ceramic hands

being dipped in nitrile rubber to make gloves, said company founder Jacob Block.

Block said he’s eager to hire inmates once they nish their sentences and have been trained in making gloves. He might only need a couple dozen to nish sta ng his plant, where he said he’s already hired 130 people.

cause they’re so committed, they’ll be making very good gloves under our direction.”

To that end, Block said he’s already sending people to Madison Correctional to work with inmates. American Nitrile saved some of the rst gloves it made, when there were still aws, so it can use them for quality-control training with inmates, Block said.

As for the Ohio Department of Rehabilitation and Correction, the program o ers numerous bene ts, said director Annette Chambers Smith.

agencies ran out of masks and gloves again.

So, once inmates are making gloves the state will buy them and use them in its hospitals, prisons and other facilities that need them, Smith said.

“We can gain control of our supply chain and at the same time teach incarcerated people skills they can use when they leave,” she said. “It’s a positive program that we want to keep expanding.”

e new plant might be big locally, but not nationally, so American Nitrile plans to build more, and it intends to hire more inmates to sta them.

“We’re still less than 2% of the U.S. consumption in this category. Our plans are well beyond this facility,” Block said. “So, it could be hundreds of hires.”

ose won’t be low-paying jobs, nor will they lack opportunity for advancement, according to Block.

“ ey’re not going to come out of the program at minimum wage or anything close ... at least $60K to start,” Block said.

Former inmates might even help American Nitrile design its future plants, he said. “ ese aren’t just going to be packers ... but potentially engineers,” Block said.

at’s the role Hull is lling, working with OPI to build a glove factory at the Madison Correctional Institution in London, Ohio.

“If you don’t think they’re serious about building a glove factory, just look at what they’ve already done,” Hull said.

e factory at Madison Correction already has compounding equipment and its laboratory in place, Hull said.

“ e goal is to start producing in the rst quarter of next year,” he said. “You don’t just go get a book for dummies on making gloves though; you’ve got to have technical savvy. We believe this group, be-

Not only does OPI, which falls under her department, want to produce revenue, but the prison system also wants to help inmates succeed so they don’t come back to prison. On top of that, it doesn’t want to go through what it went through during the pandemic, when it and other state

OPI’s King said a few dozen inmates have started taking University of Akron coursework, with more coming. She’s optimistic the program will be another way the state can ght recidivism and provide better futures for those who have committed crimes but done their time.

“We release 18,000 people a year, and we hope we release them with skills employers need,” King said.

Dan Shingler: dshingler@crain.com, (216) 771-5290

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The Madison Correctional Institution in London, Ohio is preparing to begin producing rubber gloves with inmates who will take courses from the University of Akron. | CONTRIBUTED

“WE CAN GAIN CONTROL OF OUR SUPPLY CHAIN AND AT THE SAME TIME TEACH INCARCERATED PEOPLE SKILLS THEY CAN USE WHEN THEY LEAVE,”

—Annette Chambers Smith, Ohio Department of Rehabilitation and Correction director

Brew crew: Joe Thomas, Stipe Miocic help launch All Cleveland Co ee

BY JOE SCALZO

e All Cleveland Co ee Co. is building its brand through a good Joe.

A good cause, too.

Pro Football Hall of Famer Joe omas and two-time UFC heavyweight champion Stipe Miocic are teaming up with Cleveland entrepreneur Aaron Fazulak on the socially conscious co ee brand, which launched on Wednesday, July 19.

For every bag of co ee sold, All Cleveland Co ee will donate three meals to the Greater Cleveland Food Bank.

“Since I was a rookie with the Cleveland Browns, it was always important for me to use my platform as a pro athlete to impact my community,” said omas, who played left tackle for the Cleveland Browns from 2007 to 2017. “It was really exciting to become part of the All Cleveland Co ee Company because it’s something that I’m really passionate about — having great coffee, but also giving back.”

Added Miocic, “Our vision with All Cleveland Co ee is to become the most community-focused brand in Cleveland, giving back to the people and the city that have given us so much.”

e bagged co ee will be available in light, medium and dark roasts, and comes from Cleveland-based Solstice Roasters. (No K-cups, at least for now.) Solstice was founded by Joe Deinhart, who has supplied co ee for more than 30 years to ne dining restaurants across the area, including those of Michael Simon.

Fazulak, who grew up in Westlake, hit upon the idea of All Cleveland Co ee while walking through the grocery store aisles, looking for a product that would allow him to use his skills and experiences to build a business that could give back to his home city.

“After I looked at how the business works, co ee seemed like a terri c way for us to give back,” said Fazulak, who spent nine years in Chicago before moving back home during the pandemic. “People love local co ee. People love Cleveland. And it’s a habitual thing that (people buy) on a local basis. And we thought it would be great if people were committed to giving back to the food bank on a monthly basis.

“ e local co ee section seemed like a great place to start.”

Fazulak wanted some star power to promote the company, so he reached out to one of his business partners in Chicago, Don McNeill, who founded the global creative studio Digital Kitchen. McNeill had access to managers and agents who represented A-list Hollywood talent, but Fazulak wanted to focus on local celebrities such as omas and Miocic.

“ ey have a large, local following and they’re heroes in our community,” Fazulak said. “ at message really resonated with me, rather than taking A-list celebrities and trying to get them to market a product for Cleveland.”

When All Cleveland Co ee started, it was looking at charging $18 per bag, thanks to record-high in ation in the co ee industry. But prices have come down slightly, allowing the company to charge $16 per bag.

“It will be a low-margin business, especially after donating three meals back to the food bank,” Fazulak said. “But as we hopefully build a brand and awareness in the community, we can buy more beans at a cheaper price and hopefully create some returns so we can move into some of the other things we want to do.”

One of those goals involves one of Fazulak’s other companies, Performance Lighting, a production company that specializes in stage lighting for musical acts, festivals and other events.

“We want to do something in Cleveland where we can have a festival, where a portion of every ticket we sell gives back to the food bank and other causes in the city,” he said. “So there’s an opportunity to expand from here.”

Samantha Friedman, who began her career with accounting and consulting giant EY before working as director of operations for local Cleveland makers markets, will be All Cleveland Co ee’s CEO. Other team members include Adam Vicarel, who will serve as chief creative o cer, and local videographer and lmmaker omas Sawyer.

“Co ee is just the start for us,” Fazulak said. “We hope to be a platform for local brands to partner with to launch quality products that give back to the community, across multiple sectors and industries.”

Joe Scalzo: joe.scalzo@crain.com, (216) 771-5256, @JoeScalzo01

Rosewood Grill toasts a decade in Strongsville with a refresh

e Strongsville location of the Rosewood Grill closed on Sunday afternoon, July 2, for an extensive remodeling project. Opened in 2013, this suburban location tucked in the Plaza at South Park soon established itself as a favorite neighborhood meeting spot for business, casual and upscale dining.

As of last week, there’s a fresh new vibe to this reopened Rosewood Grill, both inside and out. e exterior has been redesigned to showcase a welcoming new portico complete with modern paver tiles.

For those who love to dine outdoors, a new covered patio that’s protected from Ohio’s many elements now includes heaters and overhead fans. Rather than patio dining with a close up view of the parking lot, this new covered patio also features a freshly built landscape bu er. Two intimate re pit areas welcome lingering conversations.

Interior redesigns include carpeting, furnishings and some updated décor. Overall, the refresh (completed in just shy of two weeks) didn’t miss a beat.

Chris Kneeland, managing partner for Hospitality Restaurants, said: “What better way … to commemorate a decade of pleasing guests than to give them a fresh new spot to call home.”

is same fresh new spot included a menu redesign with the return of some customer favorites such as French Dip and Prime Rib (available on select days). New seasonal dishes from the kitchen are a welcome menu change, as well as new summertime-inspired craft cocktails.

Hospitality Restaurants’ vice president of operations, PJ Saracusa, had this to say: “To best serve our guests, we empower our employees to ex their creative muscles and foster healthy work environments that prioritize life-work balance. is way, our culinary teams always feel refreshed, ready to work and put their passion and love into their cooking.”

At the back-of-house hangs a daily reminder to every sta member of the impact they make on not only

the company’s success, but their own personal success, as well. Hospitality Restaurants “Four Pillars of Personal Success” are as follows:

1. Hospitality: genuine hospitality comes from the love and joy of serving others and seeing them happy

2. Honesty: be honest with yourself as to what you want out of life, then honestly ask yourself, “What’s stopping me from achieving my goals?”

3. Honor: honor and integrity is your inner moral compass — protect it and let it guide every decision in life

4. Happiness: happiness is a choice; make this choice every day!

It’s not a coincidence that they’ve won top workplace awards eight years in a row.

At the refreshed Rosewood Grill in Strongsville, sip on signature cocktails that just scream “summer” — a Peach Mojito or a Strawberry Basil Margarita while your table shares some starters: Pan Roasted Artichokes with Lemon-Pepper Aioli or Jumbo Shrimp Scampi in a Sofrito and Herb Butter Sauce with Garlic Toast. And how can you not smile when the wait sta drops o that order of elevated Pigs In a Blanket (mini wagyu beef franks, pu pastry and tru e mustard).

Enjoy a large Caesar Salad with

Crispy Pancetta and Roasted Cherry Tomatoes while deciding on your entrée, then order a glass or bottle of wine in anticipation of that InHouse Smoked Pork Chop with Corn Succotash and Warm Potato Salad or Hickory Roasted Prime Rib (Fridays and Saturdays only). Full, but never too full to indulge in dessert, share tastes of the Triple Chocolate Cake and the Warm Cherry Streusel Bar topped with Griotte Cherries and Mitchell’s Vanilla Ice Cream.

Rosewood Grill is one of those restaurants that is the perfect “occasion” place to go. Kneeland added: “I like to say that Rosewood Grill is whatever you want it to be. Come in shorts after a vigorous round of golf to cool down and enjoy appetizers. Meet friends for cocktails or private-barrel Bourbon sampling ights. Come dressed to celebrate a special occasion and enjoy steaks or seafood. We have you covered.”

Find Rosewood Grill, Strongsville at 16740 Royalton Road. Open for social hour, brunch and dinner.

Sha er is a freelance reporter for Crain’s Cleveland Business. Her focus is on the restaurant scene, as well as food and restaurant trends. She can be reached at bev. foodwithattitude@gmail.com.

BEV SHAFFER

Rosewood Grill in Strongsville, located across the street from SouthPark Mall, reopened in mid-July 2023 after interior and exterior updating. | PHOTOS BY BEV SHAFFER FOR CRAIN’S CLEVELAND BUSINESS

Jumbo Shrimp Scampi in a Sofrito and Herb Butter Sauce with Garlic Toast

Pan Roasted Artichokes with Lemon-Pepper Aioli

Joe Thomas and Stipe Miocic are teaming up on All Cleveland Co ee, which will donate three meals to the Greater Cleveland Food Bank with each purchase. | CONTRIBUTED

WITH GRATITUDE AND ADMIRATION

for their dedicated commitment to the autism community

AND IN HONOR OF Ronn Richard for a legacy of leadership, service and partnership

Was 2022-23 the best year ever for Cleveland State athletics?

JOE SCALZO

Near the end of the school year, as Cleveland State athletic director Scott Garrett started taking stock of all of the Vikings’ success — from fundraising to media partnerships to social media engagement to attendance to the classroom to, yes, the athletes’ on-court/ eld/arena performance — he started asking the question, “Was this Cleveland State’s best year ever?”

“I’m biased, right?” he said. “But I don’t think you can argue that it’s not.”

OK, you can certainly argue that it’s not — we live in a world where the guy who made the most famous shot in Cleveland sports history once questioned whether the world is round — but Garrett believes he has the evidence back up a claim that could otherwise come across as, “My barber said this is the best haircut I’ve ever had.”

“You can look at a number of competitive success stories … then layer in community and fan engagement, particularly with fundraising, and our academic success and our record number of all-league honorees,” he said. “ en you package all that with all of our community activations and how aligned we are and some of revenue-generating success, and it has to be our best year ever.”

Here are ve areas where the Vikings excelled in 2022-23:

Women’s basketball

e Vikings (30-5) set a program record for victories, including 16 straight at one point, and advanced to the NCAA tournament for the third time in program history.

CSU also eliminated league-power Green Bay for the third straight year — the Horizon League equivalent of beating Ohio State in football for three straight years — and extended head coach Chris Kielsmeier’s contract through the 2027-28 season.

“It was unquestionably the most successful season in program history, but nobody in our program is saying, ‘We won 30 games and won our league, and there’s nowhere to go but down,’” Kielsmeier said. “We’re all saying, ‘ at was special. Let’s go do it again.’”

e Vikings have traditionally struggled to draw women’s basketball fans to the Wolstein Center, but they saw growth this winter. CSU averaged 503 fans per game in 2022-23, up from 311 per game in 2021-22.

“ ere was an atmosphere at a high, exciting level,” Kielsmeier said. “We’re still not where we want to be. We have a lot more work to do and we understand we’re in a tough sports market because there is so much attention on other things, but we’ve never looked at that as a negative thing. Success brings excitement, and excitement brings followers.”

Garrett said CSU is not just looking to grow its women’s basketball audience, but to nd a way to generate revenue through the sport since tickets have been predominantly free in years past.

“We’ve spent a lot of time on grassroots things like building relationships and exposure,” said Garrett, whose program saw signi cant social media growth during its tournament run. “Now we have the opportunity to translate that support and visibility into revenue-generating activity.”

e Vikings also want to build on the success of women’s basketball in general, which saw a breakthrough season thanks to record TV ratings and attendance at the women’s Final Four.

serves as the face of the athletic department, driving everything from attendance to revenue to fundraising.

CSU’s men’s basketball team narrowly missed making the NCAA tournament for the second straight year — the Vikings lost to Northern Kentucky in the tournament championship game, 63-61 — but the team won 20 or more games for the third straight year, despite losing head coach Dennis Gates to Missouri in the oseason.

whose program also nalized a partnership with Bally Sports to broadcast key men’s basketball games across Ohio. “We’ll need to have a really good team and the right dates and the right opponents to draw those really big crowds, but we think that’s where we’re headed.”

Non-revenue sports

Even better? Next year’s Final Four is in Cleveland.

“Women’s basketball is as hot as it’s ever been,” Kielsmeier said. “To have that (tournament) in Cleveland while our program is at an all-time high, you can’t control that. But it creates something we’re going to embrace every day, because we understand this opportunity doesn’t come around very often.”

Men’s basketball

Like most Horizon League schools, CSU doesn’t have a football team, which means that men’s basketball

First-year head coach Daniyal Robinson nished 21-14, including 14-6 in the conference (tied for second), and advanced to the College Basketball Invitational.

CSU also saw its average attendance at the Wolstein Center rise for the third straight year, to 1,890 per game over 16 home games. at’s also a 70% improvement over 201819, when CSU drew a league-worst 1,115 fans per game.

Garrett believes the Vikings can eventually draw more than 3,000 fans per game.

“ e goal is still to gure out how to get to that number,” said Garrett,

Fundraising

Cleveland State nished third behind Youngstown State and Oakland in the 11-team McCa erty Trophy standings, given to the league’s allsports champion.

CSU’s men’s soccer team won CSU’s lone Horizon League regular-season title and also won the tournament crown, making its rst NCAA tournament appearance in 10 years.

e Vikings also saw signi cant success in wrestling (a program-record seven place nishers at the Mid-American Conference championships), men’s tennis (Horizon League North title), women’s tennis (second in the regular season and tournament), women’s golf (Sabrina Co man won the rst individual Horizon League title in school history) and esports (a national championship in the NECC games in Rocket League).

“Our broad competitive success stacks up among the best years we’ve ever had,” Garrett said.

Academics

Nine CSU teams nished with a perfect Academic Progress Rate (APR), with six teams achieving the mark over a multiyear period. is is the 10th straight year the Vikings had at least three teams post a perfect APR score.

Also, CSU had a school record 41 athletes earn league all-academic recognition. CSU student-athletes nished with a 3.46 cumulative GPA during the spring, the 34th straight semester over 3.0.

CSU athletics raised a record $1.2 million over the last scal year, a signi cant increase from 2017 ($436,000). at growth has been fueled by the launch of the Viking Fund, the growth of CSU’s annual Day of Giving in mid-February (including a record $470,000 this year) and facility projects like the Woodling Gym Enhancement Initiative, which has raised $530,000 toward its $1.5 million goal.

“We have tripled our fundraising over the last ve years,” said Garrett, who was hired in 2019. “It’s at an alltime high and the runway continues to grow.”

That’s good news, because Cleveland State has big goals when it comes to its facilities. In November, CSU announced its campus facilities master plan, which incorporates more than $650 million in proposed construction or renovation projects, highlighted by a proposed new on-campus multipurpose arena to replace the Wolstein Center.

“For that to even be on the table is beyond exciting,” Kielsmeier said of replacing the Wolstein Center. “As a coach, I’m smart enough to know that so much goes into that. e people who make those decisions are going to do what’s best for Cleveland State University, but for that to even be on the table is beyond exciting.”

In the meantime, the Vikings have plenty of other things to look forward to, Kielsmeier said.

“I just hope people can see that Cleveland State athletics are on the rise,” he said. “Hopefully, a year from now, you’re writing another article about how the 2023-24 season for Cleveland State University signicantly rose from the year before, when it was arguably the best season in the history of the school.”

Joe Scalzo: joe.scalzo@crain.com, (216) 771-5256, @JoeScalzo01

Cleveland State women’s basketball coach Chris Kielsmeier cuts down the net after winning the Horizon League championship on March 7 in Indianapolis. The Vikings (30-5) set a program record for victories and advanced to the NCAA tournament. | FRANK JANSKY

“I JUST HOPE PEOPLE CAN SEE THAT CLEVELAND STATE ATHLETICS ARE ON THE RISE.”

—Chris Kielsmeier, Cleveland State women’s basketball coach

In November, CSU announced its campus facilities master plan, which incorporates more than $650 million in proposed construction or renovation projects, highlighted by a proposed new on-campus multipurpose arena to replace the Wolstein Center. | CLEVELAND STATE

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Cleveland Institute of Art helps to shape the future of auto design

RACHEL ABBEY MCCAFFERTY

e Cleveland Institute of Art isn’t one of the main schools for automotive or transportation design, and it’s not located in a major automotive hub like Detroit, said Dan Cu aro, chair of the institute’s industrial design program.

But he thinks that’s actually what has made it stand out as a source of talent for automakers.

It’s close enough to build relationships, even before the world went more virtual, but not so close that the automakers are directly in uencing the program, said Cu aro, who is also an associate professor. at distance helps generate “fresh thinking,” he said.

Additionally, the Cleveland Institute of Art doesn’t have a standalone automotive design program; students are part of the broader industrial design program. at means they’re learning about general product design and design research that spans industries. And not only are students receiving a broad foundation in design, but it’s an education grounded in the ne arts, since that is the institute’s core. Ultimately, students tend to leave with a “problem-solving” approach to design, Cu aro said, instead of a style- rst approach.

“Now, our students can style, but they approach it from a problem-solving point of view: who’s the customer, what appeals to them, how do I get them excited, versus, personal exploration that hopefully resonates,” he said.

at helps prepare students to think about what’s next in an industry. Automotive in particular is in a time of transition with the moves to electric and autonomous vehicles, Cu aro said.

He thinks that ability to problem-solve and work collaboratively sets students up for management positions, giving them the ability to drive trends in automotive and transportation.

And there’s evidence that’s happening. Cleveland Institute of Art graduates have created transporta-

tion startups and gone on to leadership positions at major automakers.

Ryan Nagode, vice president for interior design at Stellantis, is one such graduate. He graduated from the institute in 2003 and joined what is now known as Stellantis right away, working in design on di erent vehicles, notably the RAM 1500, and moving into leadership roles as the company went through reorganizations.

But he hadn’t always planned on designing vehicles. He went to the Cleveland Institute of Art thinking he’d follow in his toy designer father’s footsteps. But the institute’s broad-based approach to design let him learn about di erent opportunities and di erent industries. A friend encouraged him to take a Saturday car class taught by automakers, and he did internships in both toys and automotive. e chance to try di erent things was “so important,” Nagode said, and he still nds himself drawing on his education, particularly the “problem-solving” skills he learned.

“ e aesthetics side is important, being able to draw and create something and think things through, but you get to a point where you’re making something real that’s got to go down the road, and you’ve got to work with the engineers and got to make it real,” Nagode said.

In an email, Ralph Gilles, Stellantis’ chief design o cer, said the automaker has a “wonderful and long-standing partnership” with the institute.

“We actively recruit interns and graduates from CIA because of their curriculum and the real-world experience they receive as students,” Gilles wrote, noting that Stellantis has CIA graduates on its design team and that three members of its leadership team are graduates, as well. at includes Nagode; vice president of Chrysler brand exterior design, Irina Zavatski; and vice president of Dodge/SRT exterior design, Scott Krugger.

“CIA alumni are creating some of the most exciting vehicles on the road today,” he continued.

Automation Tool and Die uses tech to support workers

Having the latest technology is a necessity in manufacturing, but it’s not the most important thing, said Automation Tool and Die Inc. president Bill Bennett.

“Frankly, having good equipment’s easy. You just buy it, OK? But having really, really good people who can operate it and program it and maintain it and know how to utilize it: that’s the di erence maker,” he said.

Automation Tool and Die in Valley City got its start almost 50 years ago as a contract tool-and-die maker. In the ’80s, the company started running metal stampings in-house, too, Bennett said. And the company has continued to adapt over time.

“You really need to have the full complement to be successful and to be competitive in today’s market,” Bennett said.

In our Modernizing Manufacturing series, Crain’s is exploring how local manufacturers are using technology to make their work safer, more e cient and more appealing.

Technology can make employees’ jobs easier, and make them more efcient in what they do, Bennett said.

e company needs just as many employees as ever — currently that’s 74 — but the technology supports them and allows them to do higher-paying work. It’s less about manual labor these days.

“We try to let our equipment do the heavy lifting,” he said.

And it’s important for companies to embrace the latest technology if they want to be attractive to the next generation, he said. Younger employees want to see that companies are adapting and growing.

Having an employee base that includes workers of all ages is a benet to his company. ATD’s younger employees, in particular, are “willing to try new things,” Bennett said, looking at new software and equipment, but also new processes. And

those things can go hand-in-hand.

For example, Bennett said ATD is thinking about changing how it processes some of its products with the addition of a water jet.

Embracing technology in manufacturing starts with software that helps the company create 3D models or CAD simulations of complex parts, he said, noting that it’s a lot easier and cheaper to change a product at the design stage, as opposed to once product is being run on machines. at software has also saved a lot of time that employees would have spent on calculations and design a few decades ago.

“ ey’re not cheap, but they are worth their weight in gold,” Bennett said.

And staying up-to-date on the latest equipment on the shop oor is critical, too. Automation Tool and Die has embraced servo presses in recent years, which o er far more exibility and customization than traditional mechanical punch presses, Bennett said. e motion of a servo press can be programmed,

as opposed to just going up and down, as well as the speed. e company is looking to add another servo press, soon, in addition to a water jet.

ATD tends to take an employee-focused approach to selecting new equipment, encouraging its workforce to take the time to experiment with new technologies before it makes a purchase. at means giving them time to take webinars, Bennett said, or learn about a new technology face-to-face. Bennett said he’s not the one running the machines; the employees are.

“We give them some autonomy to try things and experiment. We want them to, within the realm of what they’re doing, to have some of that freedom,” Bennett said. “My philosophy is everything can’t just be driven down or dictated down. ey have to feel like they can experiment, they can contribute, they can bring things to the table.”

Rachel Abbey McCa erty: (216) 7715379, rmcca erty@crain.com

RACHEL ABBEY MCCAFFERTY

Technology is important to Automation Tool and Die’s success, but so is having a strong workforce. | AKRON VIDEO MAKERS PHOTOS

Ryan Nagode talks to Cleveland Institute of Art industrial design students at the 2023 Cleveland Auto Show. | CLEVELAND INSTITUTE OF ART

REAL ESTATE

Applications are due by Aug. 6. e e ort is part of a broader push to close racial gaps in the real estate industry, while spurring investment in long-overlooked Cleveland neighborhoods. e idea is that minority developers will be more likely to identify with, and build in, those places — if they can get access to capital, connections and technical support.

“Models like this are important for us solving some of the big problems that we have,” said Kwame Botchway, Village Capital’s director of community impact and innovation.

Village Capital is the lending arm of Cleveland Neighborhood Progress, a nonpro t organization focused on revitalizing communities. Cleveland Development Advisors, an a liate of the Greater Cleveland Partnership, provides secondary debt and federal New Markets Tax Credits for real estate deals.

Together, they’ve spent the last year plotting out the program and raising money to pay for it.

Cleveland Development Advisors, or CDA, has signed a two-year, roughly $500,000 contract with Capital Impact Partners. at will cover two rounds of the program, in 2023 and 2024. KeyBank is providing more than half of the funding, while CDA is covering the balance of the cost.

Separately, CDA and Village Capital have assembled grants from KeyBank, the Cleveland Foundation, the George Gund Foundation and Bank of America to develop a better support system for minority developers. at system will o er help with everything from nding sites to navigating public approvals to securing early-stage funding, equity and debt.

e partners are collaborating on the project with the city; the Cuyahoga Land Bank, or Cuyahoga County Land Reutilization Corp.; Enterprise Community Partners; and LISC Cleveland.

“It’s really bringing all these parties to the table, working collectively to nd a pathway for emerging developers of color,” said Yvette Ittu, CDA’s president and CEO.

Cleveland’s iteration of the Equitable Development Initiative is a bit di erent from the programs in Detroit and other cities. First o , it’s a joint e ort by CDA and Capital Impact Partners, which typically does not have local programming partners.

SOCCER

From Page 1

“We are now focused on what we think is a very exciting stadium plan,” said Murphy, who co-founded the CSG with his business partner, Nolan Gallagher. “We look forward to sharing that progress and our vision with the NWSL expansion committee at the appropriate time.”

e stadium would also serve as the home of the city’s MLS Next Pro team, which will begin play in 2025. While Murphy wouldn’t release details about the stadium plan, he did say his group is hoping to build it downtown.

“Our belief has always been that a downtown location provides the ideal backdrop for a stadium and the environment that we’re trying to create for our teams, fans and the city as a whole,” he said.

As for the NWSL, Cleveland was

HOW TO APPLY

The application is open for the Cleveland Equitable Development Initiative Learning Series through August 6, 2023. Apply via the Capital Impact Partners website at: tinyurl.com/8vtxbfpt

Second, applicants must have some development experience. ey also must have a real project they want to pursue — not an academic exercise. e program will culminate with a pitch competition, where two or three winners will split a $100,000 award, Ittu said.

Lastly, the classes will be small, which will allow for more one-onone attention.

one of four groups that presented at the league’s owners meetings last November in hopes of joining the NWSL as an expansion team in 2024. But Cleveland was the rst group eliminated, with the league citing concerns over its stadium situation, Murphy said.

e NWSL ultimately chose San Francisco as its 14th team, edging bids from Tampa and Boston. (Utah had previously been selected as the 13th team.) e Bay Area group paid a record $53 million expansion fee.

e league plans to add two more teams in 2026, and Boston already has a deal in place to land one of those spots, according to the Wall Street Journal. Boston’s expansion fee also will top $50 million, the WSJ reported.

e NWSL will begin the 2026 expansion process later this year.

“ e league received a tremendous response to their last round of expansion — with more than 80 mar-

“In our research, where we’ve seen other programs like this, a cohort of 30 might have one project that actually gets funded or gets to a funding stage,” Ittu said. “We’re hoping that there’s a much higher number here.”

A half-dozen local developers and real estate professionals have signed on as advisers and mentors for the program. One of them is Mitchell Schneider, the founder and executive

kets inquiring — and we imagine similar, if not greater, excitement will be part of this round,” Murphy said. “ ere certainly are other attractive markets, but we are focused on positioning Cleveland to be the most attractive expansion market when the next round kicks o .”

Cleveland is the only top-20 U.S. market without Tier I or II professional soccer. MLS Next Pro is considered a third-tier league in the U.S., behind MLS (Tier One) and the United Soccer League Championship (Tier Two).

If selected, Cleveland would be the largest NWSL market without an MLS team.

“We don’t think there are any questions that Cleveland will be a tremendous market for NWSL and represents a signi cant opportunity for American soccer,” Murphy said.

Joe Scalzo: joe.scalzo@crain.com, (216) 771-5256, @JoeScalzo01

chairman of First Interstate Properties Ltd., the Lyndhurst-based company behind Legacy Village, Steelyard Commons, the One University Circle apartment tower and other projects.

“With the East Side of Cleveland, so many neighborhoods are poised for some growth and development. … To try to do everything that the community can to ensure that this spreads opportunities around — and isn’t simply limited to outsiders coming in — makes a lot of sense,” he said. “ ere’s an opportunity in Cleveland, and I think what Cleveland Development Advisors and Cleveland Neighborhood Progress are doing is a really terri c thing.”

Gina Merritt, another mentor, said that groundbreakings will be one way to measure the program’s success. Another metric will be the increased ow of loans and grants to minority developers.

Merritt, a Black developer who lives in Maryland, is working on a cluster of projects in the Hough neighborhood, on Cleveland’s East Side. In the wake of interest-rate hikes and rising materials and labor costs, she’s still trying to ll a $5.6 million funding gap to turn a vacant high-rise at 9410 Hough Ave. into workforce housing, with a new community center next door.

e fate of her other projects, including a redevelopment of a nearby

shopping center called Martin Luther King Jr. Plaza, hinges on closing that rst deal. But she’s still struggling, despite decades of real estate experience and an $8 million pledge of federal pandemic-relief funds from the city.

“My hope for Cleveland is they have such a strong, strong ecosystem of players,” Merritt said, referring to foundations, nonpro t lenders and other civic groups. “I just want them to show up. A few have shown up for me. Not as much as I had hoped.”

Merritt has worked with Capital Impact Partners in Washington, D.C. e nonpro t, part of the Momentus Capital family of organizations, has seen more than 200 developers go through the Equitable Development Initiative since the program’s inception. Now those graduates act as a national network of professionals willing to assist, and sometimes partner with, their less-experienced counterparts.

“ is is an ongoing process,” said Je Mosley, the initiative’s national program director. “Ultimately, what we expect to see are much more condent, established, successful developers who will then be able to execute on projects of their own but will also be opening doors for their peers.

And that’s what I’m excited to see.”

Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

Cleveland Soccer Group co-founder and CEO Michael Murphy is in Washington, D.C., this week for the MLS All-Star Game. | CONTRIBUTED

A new program aims to broaden the ranks of minority real estate developers in Cleveland, in hopes of building wealth and driving investment. The Lumos apartments, above, in Cleveland’s Hough neighborhood, sit on a street lined with historic homes and older apartment buildings. | MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS PHOTOS

CCM loan o cers such as Lundholm, the suit claims, were paid in commissions only and ultimately were paid nothing during periods when no loans were sold.

Lundholm was a salesperson for CCM between at least April 4, 2022, and Nov. 2, 2022, according to court documents. He is a veteran mortgage banker who had worked at Wells Fargo Home Mortgage for more than nine years prior to joining CCM, according to LinkedIn.

Since the initial complaint was led, two other named plainti s have joined the case: Robert DiRusso and Max Rosa, both of New York. DiRusso was a loan o cer at CCM between September 2020 and August 2022. Rosa was a loan o cer with the company between July 2021 and December 2022.

A ruling by Polster on Monday, July 10, is what directs CCM to hand over to plainti s contact information for salespeople who may be eligible to opt into the case so that they may be directly noti ed of their opportunity to do so.

Brendan Sweeney, an attorney with the Law O ce of Christopher Q. Davis in New York and one of the lawyers representing the plainti s,

emphasized that the case centers on a “scheme that had two main components.”

“First, loan o cers were required to agree to pay back wages if (CCM) terminated them. (CCM) did this to shift some of the risk of a downturn in the market for mortgages onto their employees,” Sweeney said in an emailed statement. “Second, (CCM) required employees to agree to resolve all disputes in arbitration while also requiring them to agree that (CCM) could sue them in court and force them to pay (CCM’s) legal fees. We believe that both parts of this scheme are unlawful and that (CCM) also failed to pay loan ocers overtime. e court’s recent decision allows people who were harmed by (CCM’s) scheme to join this lawsuit and protect their rights.”

CCM is being defended by attorneys with Kohrman Jackson & Krantz, including Brett Krantz. Krantz did not respond to a request for comment.

A spokesperson for CCM has said the company does not comment on pending litigation.

According to the lawsuit, Lundholm “often” worked more than 40 hours per week to meet productivity requirements. But because CCM considered him exempt from federal and state overtime requirements and paid him in commissions only,

he earned less than minimum wage in “most workweeks.” e stories for DiRusso and Rosa are similar.

e suit argues that salespeople such as Lundholm should have never been classi ed as exempt from minimum wage and overtime pay requirements, which may be a violation of the Fair Labor Standards Act.

Further, the suit alleges that CCM knew that workers like Lundholm “performed work that required compensation for minimum wages and/or overtime. Nonetheless, (CCM) operated under a scheme to deprive (Lundholm) and other members of the FLSA Collective of minimum wages, overtime, or both by failing to properly compensate them for all the time worked.”

e case also notes that CCM has attempted to claw back part of a $135,000 sign-on bonus that was paid to Lundholm. CCM had sought $81,371.83 of that total, according to court documents, which is purportedly the amount that Lundholm received from that bonus after taxes.

CCM characterized that sign-on bonus as an “unvested wage advance,” per the related contract, and stated that an employee may be required to pay their bonus back within 10 days of their termination date if they do not remain employed by the company for at least two years.

If CCM were to succeed on recov-

IMG Center case draws sparks as appeal looms

Testy court lings between the owner of the distressed IMG Center, a 15- oor downtown Cleveland o ce building, and its receiver over the building’s shrinking tenant roster are providing insight into worsening conditions at the property as the o ce market struggles.

In an e ort to block a nding of foreclosure and ordering of a sheri ’s sale in a Cuyahoga County Court of Common Pleas case, building owner 1360 East Ninth CLE LLC, led by Cleveland real estate owner James Breen, is pursuing an appeal in Ohio’s Eighth District Court of Appeals (Cuyahoga County).

However, grounds for the appeal pending since June 13 have not been led, and Ross Babbitt, attorney for 1360 East Ninth, on July 13 won appeals court approval to move the ling date for the appeal to Aug. 14. e Cleveland attorney requested the additional time due to the press of other business.

e court ght, which dates from 2019, is occurring as building conditions worsen at the hands of receiver Paul Downey, the building owner’s court lings claim. In general, though, most downtown o ce markets, including Cleveland’s, are getting weaker as demand has failed to rebound in the post-pandemic era.

In a July 10 ling — still in common pleas court due to arguments over the receivership preceding the appeal — the building’s owner claims that occupancy of the structure has dropped to 42% from 96% in 2018.

“ ere is no indication in the receiver reports of the massive exodus of half the tenants from the building, or a signi cant e ort to renew leases with tenants or attempt to nd new tenants,” the building owner’s attorney wrote.

However, Downey’s lawyer, Cleveland attorney Carl Dyczek, replied in a July 17 court ling that the

building owner’s claims were to “iname,” rather than to support, its complaints about the receiver.

e receiver’s ling reported about half the 96,000 square feet of lost tenancy was due to a tenant moving to the suburbs. Another tenant slashed its footprint by 17,000 square feet due to the rise of working from home. Five tenants retired, merged or planned to relocate prior to the naming of the receiver in 2019, according to the report.

None of the o ce tenants was identi ed by name. However, the largest departure is known to be MAI Capital, which drew news coverage as the nancial management rm exited downtown for an o ce in Independence. e receiver does not directly disclose the building’s occupancy by its own analysis. But CoStar, the online realty data service, puts occupancy at 60%, according to a July 2023 update. e receiver also has a team of agents from CBRE’s Cleveland o ce marketing the property to new tenants.

Although IMG Center’s scal woes dated from 2019, before the pandem-

ering that money, “Lundholm would be forced to pay CCM more than it paid him for seven months of work,” according to court lings.

CCM sued Lundholm for that money in a lawsuit led on Feb. 7 in the Cuyahoga County Court of Common Pleas. Lundholm’s case against CCM was led a week later.

Meanwhile, CCM’s case against Lundholm was dismissed in May.

As far as Lundholm et. al.’s case against CCM, the defense has requested a dismissal and a motion to compel arbitration.

However, counsel for the plainti s argues that while one contract reportedly requires employees to submit to arbitration regarding disputes with

their employment agreement, the contract for sign-on bonuses requires disputes to be settled in court. It’s the position of the plainti ’s side that these contracts contradict one another and are therefore unenforceable.

A timeline has not been set for when CCM must provide the court-ordered contact info for individuals who may want to join the case, but plainti s will likely ask for one.

CCM, run by CEO Ronald Leonhardt Jr., ranked as the ninth-largest privately held company in Northeast Ohio in 2022 based on 2021 revenue of $2.1 billion, according to Crain’s research.

Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

ic, the context is that of a worsening downtown o ce market, not only in Cleveland but across the U.S.

A report on conditions in the Cleveland downtown o ce market released by the Newmark brokerage on ursday, July 20, puts vacancy at 23.8% as of the end of June, about 50 basis points higher than the prior quarter ending March 31.

Newmark also noted there was no signi cant downtown leasing so far in 2023, and leasing demand has been “lukewarm” since 2018.

Ironically, one of the motions stalled in the Cuyahoga County Common Pleas Court case by the appeal was to order a new appraisal for the order to set a value to benchmark the now-postponed potential sheri ’s sale.

CoStar reports the most recent appraisal for the o ce tower was $8.4 million in November 2022, down from $24.9 million in November 2017. e foreclosure is being pursued by a company led by Rialto Corp. — a Miami-based special servicing concern that handles distressed properties for lenders — called RSS UBSCM2018C9-OH IMG LLC. It is foreclosing under a $17 million loan the building owner secured to renance the property in 2018. e original lender led to foreclose in 2019 after mortgage payments were not made for a year.

Downey and Dyczek declined comment on the pending litigation. Breen did not reply to three messages by 3:30 p.m. ursday, July 20; he has previously declined comment citing pending litigation. Breen has objected in texts to Crain’s Cleveland Business earlier this year to being referred to as the building owner, though he signed the mortgage on behalf of 1360 East Ninth and is named as the responsible person in state incorporation documents.

Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

The countdown to a sheri ’s sale of IMG Center in downtown Cleveland is on hold. | CRAIN’S CLEVELAND FILE PHOTO

PEOPLE ON THE MOVE

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BANKING

ERIEBANK

ERIEBANK Welcomes

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LAW

Brennan Manna & Diamond

Nathaniel R. Sinn recently joined BMD as a Partner in its Cleveland of ce. He focuses his practice in the areas of Bankruptcy/Workout, Banking & Finance Law, and Real Estate. He has extensive knowledge of receiverships, and his receivership practice bridges multiple practice areas and involves both transactional and courtroom work. This experience allows Nate to look at complex legal issues from multiple angles thereby saving his clients valuable resources.

LAW

Hahn Loeser & Parks

FINANCIAL SERVICES FIRM

Clearstead

Clearstead is pleased to announce that Ron Ulle, CFA, has joined the rm as a Senior Managing Director in the Private Client Group. In this role, Ron will provide wealth management and investment services to the rm’s private clients. He has over 27 years of experience in the nancial industry, an MBA from the Weatherhead School of Management at Case Western Reserve University, a bachelor’s in nance from The University of Akron, and is a CFA Charterholder.

Oswald Companies, a Unison Risk Advisors company, welcomes Ben Osborne as a Senior Sales Executive on the Property & Casualty Insurance team. With over 17 years of experience, Ben specializes in mitigating risks within the construction industry. He is actively involved in the CFMA NW Ohio and Metro Detroit chapters and is a designated Construction Risk and Insurance Specialist and Cyber Risk Manager. He strives to help clients improve their risk pro les through creative strategies.

The Firm welcomed associate Malek Khawam to its Business Practice. Khawam focuses on corporate and business law, real estate and land use, and construction. He advises entrepreneurs, non-pro ts, and businesses of all sizes in formation, governance, regulatory compliance, and franchising. Khawam served with the U.S. Attorney’s Of ce, Northern District of Ohio as a legal extern. He earned his J.D. from Cleveland State and is a founding board member of the Arab American Bar Association of Ohio.

The Intellectual Property Law Firm of Renner Otto is excited to announce the recent addition of attorneys Lauren Konrai-Mori and Navin Bora. Lauren Konrai-Mori is an experienced Intellectual Property attorney and a graduate of Golden Gate University School of Law. Her practice focuses on counseling clients on all aspects of Trademark prosecution and enforcement, both domestically and internationally. Navin Bora brings with him a wealth of technical expertise and Intellectual Property experience to Renner Otto. He holds a B.S.E. in Chemical Engineering and is a graduate of Chicago-Kent College of Law. Navin focuses on patent practices, including preparation and prosecution of patent applications and patentability opinions.

LEGAL Benesch

Grace Karam has joined Benesch as an Associate in the rm’s Labor & Employment Practice Group. She concentrates her practice on defending clients in a wide range of labor and employment matters. Grace has prepared position statements on behalf of employers responding to complaints led with the Ohio Civil Rights Commission and has investigated cases of alleged workplace discrimination and retaliation, and is well-practiced in drafting documents in all stages of litigation.

NONPROFITS

Cleveland Museum of Natural History

The Cleveland Museum of Natural History welcomes Byron DaSilva to its Board of Directors. DaSilva’s talent, expertise, and professional knowledge will allow him to contribute to the Museum’s historic transformation, strategic priorities, and mission to connect people with the importance of the natural world. DaSilva is Vice President of Transformation at Sherwin-Williams. He earned his J.D. from University of Illinois College of Law and a B.A. from the University of Illinois UrbanaChampaign.

Renner Otto

Bora

Konrai-Mori

Gittins

Elko

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