Issuu

LOOK BACK: LTV Steel’s bankruptcies PAGE 19

FOCUS: Reimagining universities PAGE 10

CRAINSCLEVELAND.COM I OCTOBER 12, 2020

REAL ESTATE

A first look at the Lumen THE CURTAIN IS GOING UP ON PLAYHOUSE SQUARE’S 34-STORY APARTMENT COMPLEX | PAGE 6

The historic Keith Building on the other side of Euclid Avenue is reflected in the glassy exterior of the Lumen tower. MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

E-COMMERCE

SPORTS BUSINESS

Digitally native companies face challenges Kaulig Racing zooms into Behemoth Amazon looms large over online businesses’ marketing efforts NASCAR title contention BY JAY MILLER

Across Miles Road from the 880,000-square-foot, 2,000-employee Amazon fulfillment center in North Randall, the eight workers of OrangeOnions toil, designing and creating products — mostly dolls under the Playtime by Eimmie and Plushible brands — that will find

their way to Amazon centers across the country and be shipped out from Northeast Ohio as a result of sales made on the company’s own website. It’s a juxtaposition that conveniently wraps up the rapidly growing world of online retailing, which is bubbling up in Northeast Ohio and everywhere else for smaller companies. Amazon looms over a marketing channel fill-

NEWSPAPER

ing up with online-only businesses that are growing rapidly because of the coronavirus pandemic. “March was our biggest month ever,” said Christine Vasquez, sales and marketing manager of OrangeOnions. Digitally native companies aren’t new. They’ve been around for a decade, creating and selling products under the radar, not in shopping centers or brick-and-mortar storefronts, but primarily online. Because of Amazon’s size, getting on that platform is a key way to attract customers. It’s unclear, though, how many digitally native businesses — businesses that sell only online — are operating in Northeast Ohio and how fast they are growing. See E-COMMERCE on Page 16

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BY KEVIN KLEPS

In its first two years competing in NASCAR’s Xfinity Series, Kaulig Racing had 10 top-10 finishes in 66 races. The Welcome, N.C.-based arm of the Hudson-based Kaulig Companies didn’t crack the top five once. “Five years ago when we started, we were running between 20th and 25th every week. If we could get in the top 20, we felt like we were running good,” said Matt Kaulig, the executive chairman and owner of a group of businesses that includes LeafFilter. In 2020, Kaulig Racing’s two fulltime drivers — Ross Chastain and Justin Haley — are title contenders on a stock-car circuit that is one step down from NASCAR’s Cup Series.

Haley, a 21-year-old phenom, has won three Xfinity races and entered the Oct. 10 Drive for the Cure 250 at Charlotte Motor Speedway at No. 4 in the 2020 Kaulig points standings. Chastain has a Kaulig Racing-best 13 top-five and 24 top-10 finishes in 27 starts. The 27-yearold entered the Charlotte race at eighth in the points standings. Should Chastain hold the position, he would join Haley in the threerace Round of 8. See KAULIG on Page 17

10/9/2020 12:22:41 PM

REAL ESTATE

Industrial Commercial Properties aims to acquire long-ailing City View Center City View Center has been tied up in court since early 2009. A judge approved a foreclosure eight years ago, but the property remains in the hands of a court-appointed receiver. MICHELLE JARBOE/ CRAIN’S CLEVELAND BUSINESS

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derstand the site, its history and any red flags. “The two biggest misconceptions … are that the buildings are falling down the hill and that they are full of gas,” Semarjian said. “And that’s not true.” On Sept. 29, the state EPA and an ICP affiliate signed a legal agreement that will let the developer take control of monitoring and gas-extraction systems for the property. The deal was a key step on ICP’s path from lienholder to landowner and eventual redeveloper of the project. “It was important for our team to spend a little bit more time and more money to make sure that this plan was very robust and met all the requirements of the Ohio EPA,” said Chris Salata, ICP’s chief operating officer. In an email, an EPA spokeswoman wrote that the agreement, along with a document that outlines how ICP expects to run and maintain the systems, “are put into place to ensure the operations at the site are protective of human health and the environment.” She confirmed that the agency has deemed ICP’s plans “acceptable.” Davis said that ICP also hopes to take City View through the Voluntary Action Program, which involves environmental analysis and cleanup, if necessary. That process results in legal protections for property owners

Eagle supermarket and Applebee’s. A company tied to Simon purchased the distressed debt on City Big changes are afoot at City View View in 2017, five years after a judge Center, a 60-acre failed shopping ruled on the foreclosure. Simon still center that’s been one of Northeast won’t say what he paid. At auction, Ohio’s biggest real estate headaches he and ICP will be able to credit bid, for more than a decade. offering as much as the value of their Construction workers are stripping note without having to provide cash. decorative facades off long-vacant The prospect of a business park stores, readying the former Dick’s thrills Garfield Heights Mayor Vic Sporting Goods, OfficeMax and Collova, who has been grappling Walmart boxes for new life. Signs and with City View since he took office in leasing flyers promote the property as late 2009. Highland Park, a business park being “The amount of jobs that this will pitched to light industrial tenants, create, the additional tax dollars technology companies and offices. coming to the city is really huge, no Industrial Commercial Properties question about it,” he said of ICP’s LLC of Solon hopes to acquire City plans. “This is just the beginning. … View before the end of the year, in a This is something really big, and we transaction that will resolve an couldn’t be happier to be a part of it.” 11-year-old foreclosure case. RenThe Highland Park proposal is rederings of the reimagined project viving conversations about connectshow renovated buildings with a ing Transportation Boulevard to more muted palette and grassy lawns Rockside, less than a mile away. and sidewalks in place of the parking Those talks are preliminary, and it’s lot’s rippled driving lanes. too early to put a firm budget or timeOn Sept. 30, the court-appointed line on such a project, said Vince receiver who has controlled the Adamus, vice president of real estate property since 2009 asked a federal and business growth services for the judge to sign off on an auction that’s Greater Cleveland Partnership. likely to occur in mid-November. “There hasn’t been a demonstratICP, the holder of a $132 million note ed need prior to this,” Adamus said. on City View through a joint venture “Now … Highland Park is in the with attorney and real estate investor hands of an owner that has the caGeorge Simon, is the obvious bidder. pacity not only to fill the existing site A prolific redeveloper of troubled but also to do additional buildings, ICP formally stepped into the lender’s “NOW ... HIGHLAND PARK IS IN THE HANDS OF development there. So now it makes sense to shoes at City View in April. Owner Chris Semarjian AN OWNER THAT HAS THE CAPACITY NOT ONLY look at the expansion.” He said the partnerstill won’t say much pub- TO FILL THE EXISTING SITE BUT ALSO TO DO ship is talking up the site licly about his vision or his to potential occupants. talks with potential ten- ADDITIONAL DEVELOPMENT THERE. SO NOW ants, though he acknowl- IT MAKES SENSE TO LOOK AT THE EXPANSION.” In the third quarter, industrial vacancy in the edges that the company is Vince Adamus, vice president of real estate and business region was 5.4%, accordsprucing up the site, just — growth services for the Greater Cleveland Partnership ing to the Newmark off Transportation Boulewho satisfy the EPA’s standards. Knight Frank brokerage. vard near Interstate 480. “That’s how you address the stig“Something we don’t have enough “We’re protecting our asset,” he said during a recent meeting at ICP’s ma,” Davis said of taking on a proper- of is land and clean buildings to meet ty with substantial reputational bag- the demand for industrial space,” headquarters. But Semarjian is direct about a few gage. “You do it with good people, Adamus said, adding that the propergood science.” ty’s location near densely populated things. City View started losing retailers residential areas also makes it comFirst, he’s certain that the buildings are solid. The undulating park- soon after it opened, as the original pelling from a workforce developing lot around them is the result of developer tangled with the EPA and ment perspective. Real estate brokers said ICP, which more than a decade of deferred one store closure triggered another. A once-promised road project, to has refashioned former automotive maintenance and settling since City View opened in 2006 on former mu- extend Transportation Boulevard plants as multi-tenant projects and nicipal landfills. And that’s fixable, south to Rockside Road and open up has taken on other sites with tangled adjacent land for development, never histories, is well-situated to succeed. Semarjian said. “Semarjian buys things off of Ford Second, speaking of the landfills, materialized. As the Great Recession ICP and its consultants haven’t de- deepened, high-profile retail sites on and GM,” said Rico Pietro, a principal tected methane in the buildings, ac- both sides of I-480 in Garfield Heights with Cushman & Wakefield/Cresco cording to documents filed with the ended up in court, as the subjects of Real Estate in Independence. “I think he’s got a real nice properOhio Environmental Protection messy foreclosure litigation. The only remaining businesses at ty there,” Pietro added. Agency. The company has spent much of this year working with envi- City View, which spans more than ronmental consultant and attorney 500,000 square feet and has room for Michelle Jarboe: michelle.jarboe@ Todd Davis and the Ohio EPA to un- additional construction, are a Giant crain.com, (216) 771-5437, @mjarboe

2 | CRAIN’S CLEVELAND BUSINESS | OCTOBER 12, 2020

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EDUCATION

CWRU using AI to predict disease outcomes, improve treatment Center for Computational Imaging and Personalized Diagnostics is making strides in artificial intelligence in medicine BBY RACHEL ABBEY MCCAFFERTY

People’s bodies react differently to different kinds of treatment. The work being done by Anant Madabhushi and his team at Case Western Reserve University could make the treatment process less of a mystery. Madabhushi is director of the Center for Computational Imaging and Personalized Diagnostics and the Donnell Institute Professor of Biomedical Engineering at the university. The center’s work focuses on the role of artificial intelligence in predicting disease outcomes and prognoses. That could help determine how doctors should best treat individual patients, using the data to predict whether a patient would respond well to a particular treatment or whether their disease is likely to progress. And, when it comes to treating diseases like cancers, that means doctors might be able to select less aggressive treatments when possible and spare putting patients through more aggressive ones like chemotherapy. Madabhushi brought his work, and about 12 researchers, to Cleveland about eight years ago. Today, it has about 60 people working on these projects around artificial intelligence in medicine. It’s received close to $60 million in federal fund-

Pallavi Tiwari, Satish Viswanath and Anant Madabhushi, faculty in the Center for Computational Imaging and Personalized Diagnostics, review a presentation on brain tumors. | ERIKA WOODRUM

ing, Madabhushi said. And he wants to see the center continue to grow. Madabhushi’s work, which draws on both the medical expertise in the region and the research strength of the university, is “revolutionary,” said Ben Vinson, Case Western Reserve’s provost and executive vice president. “He’s really changing our ability to save lives,” Vinson said. Case Western Reserve has long been known for its research, Vinson said, but it’s never been more important, as the university is being called to help solve the problems of the day. And the work of Madabhushi and his

team in particular fits well with the university’s strategic plan, which aims to find the overlap between humans and technology, Vinson said. In addition to his work at Case Western Reserve, Madabhushi also has appointments at the Louis Stokes Cleveland VA Medical Center, University Hospitals and the Cleveland Clinic. The region’s medical “ecosystem” has been significant to the center, he said, not just in the proximity of the institutions, but in the way they work together. He said his work takes place at the “intersection of engineering, artificial intelligence and

precision medicine,” and that takes multidisciplinary collaboration. It’s not just access to data, he said; it’s the access to experts and expertise. And the AI networks Madabhushi and his team are working to develop are a bit different than traditional artificial intelligence. Typically, experts expose an AI network to data without controlling what patterns it’s learning, he said. Madabhushi’s work is informed by the pathology of disease, and that requires bringing engineering expertise together with medical knowledge. A recent grant from the National

Institutes of Health will have Madabhushi’s team, along with researchers at the University of Pennsylvania, the Cleveland Clinic and Cedars-Sinai Medical Center, looking at ways to apply their AI expertise to the field of heart transplants. With the support of a four-year, $3.2 million grant, researchers will analyze biopsy data from transplant patients with the goal of predicting who is likely to accept or reject a new heart. Humans are able to do this kind of analysis, too, but they’re susceptible to each other’s opinions; pathologists aren’t likely to disagree with one another, Madabhushi said. AI doesn’t have that problem. The main question Madabhushi’s work is trying to answer is how to “stratify the risk of the disease,” he said, aligning the right treatments with the right patients. For example, one of the areas Madabhushi and his team are focused on is immunotherapy, which taps into a patient’s own immune system to fight disease. But the approach has a few hurdles. One is that immunotherapy doesn’t work for all patients; another is that it’s extremely expensive, Madabhushi said. “So this is one of the big challenges that we’ve been looking at,” Madabhushi said. See AI on Page 16

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A Cleveland school levy on the Nov. 3 ballot and economic strains caused by the coronavirus pandemic dominated a discussion among downtown property owners at a recent Crain’s forum. During the hourlong program on Tuesday, Oct. 6, real estate developers Doug Price and John Carney expressed frustration with a softening apartment market and the prospect of rising taxes. Playhouse Square CEO Gina Vernaci, meanwhile, suggested that there’s an opportunity in this unwelcome pause — a chance to consider, and plan for, what’s next. “If history is our teacher on this, 100 years ago we had a pandemic,” she said. “And we had a world war. And we had a financial crisis. And these theaters at Playhouse Square were built at that time, and when they opened, people were lined up around the block to get in. “So we know that people want to come back downtown. We’re human beings. We want to gather. How can we not waste this time wishing for it to be different, as opposed to using this time to make this a friendly environment for development?” she asked. The forum, originally set for April but delayed by six months, morphed into a virtual program reframed by a public health crisis and recession. Carney, co-founder and managing partner of the Landmark Companies, said his downtown apartment properties are feeling the effects of heightened competition from recent projects, a pandemic that’s nixed events and a May 30th riot that’s left some people skittish about venturing to the central business district. “All of us downtown are kind of poaching off each other,” Carney said, noting that landlords are offering deals to attract tenants. “It’s not healthy, but it has to be done.” Price, CEO of the Willoughby-based K&D Group Inc., controls 2,500 apartments stretching from Public Square to Playhouse Square. He was worried about overbuilding even before the pandemic. Now K&D’s suburban properties are full, he said, but recent traffic downtown has been abysmal. Playhouse Square, which owns the sleek new Lumen apartment tower on Euclid Avenue, has a rosier view. “We are actually quite pleased with the results so far,” Vernaci said of interest in the 318-unit project, which is 27% leased.

Breaking the levy Carney and Price, K&D’s CEO, came out swinging against the school levy, called Issue 68. The Cleveland Metropolitan School District is seeking a renewal of a 15-mill levy that voters originally approved in 2012. Issue 68 combines that request with a 5-mill increase, in part to cover expenses created by the pandemic. If voters sign off, the levy will last a decade. Businesses — commercial real estate owners, for the most part — will pay two-thirds of the costs. Price said he and other property owners anticipated the renewal of the existing levy, which generates $66

Tom Yablonsky of Downtown Cleveland Alliance, the Historic Gateway Neighborhood and the Historic Warehouse District Development Corporation shared a history of downtown Cleveland real estate. | CRAIN’S CLEVELAND BUSINESS/CRAINSCLEVELAND.COM

million a year for the schools. But he strongly opposes the tax hike. “Let me say we 100% support the kids in the schools,” he said. “But we’re in a time period we’ve never been in right now downtown. We’re all losing money or making less money or struggling.” Carney predicted that the increase, on top of perennial battles between property owners and school district attorneys over real estate valuations, will discourage investment in the city. “If they want to drive out downtown development, keep doing what they’re doing,” he said. Property owners won’t say whether they’re behind an anti-levy mailing campaign. Flyers that started popping up in Clevelanders’ mail-

“ALL OF US DOWNTOWN ARE KIND OF POACHING OFF EACH OTHER. IT’S NOT HEALTHY, BUT IT HAS TO BE DONE.” — John Carney, co-founder and managing partner of the Landmark Companies

boxes last month predict rent increases, job losses and small business closures. They’re paid for by an opaque organization called Cleveland’s Future Fund LLC. During a recent virtual City Club of Cleveland forum, district CEO Eric Gordon said the flyers stretch the truth about the levy and exploit the pandemic as a reason not to support the schools.

Backing off development K&D was scouting for downtown projects early this year. Not anymore. “We don’t need more apartments. We don’t need more office space. And we don’t need more hotels. So what do we do?” Price said, adding that he’s turning to the suburbs for development prospects. “We just don’t see where to go downtown,” he said. “We’re really concerned about preserving what’s there.” Landmark hasn’t shelved its plans to build 200-plus apartments next to the Shoreline, the former Quay 55 residential complex on North Marginal Road east of downtown. But the pandemic has delayed that project by a year or two, Carney said. He still has visions of a tower, with

lakefront views, for a parking lot the company owns at the northern end of West Sixth Street, just south of the Port of Cleveland. “Our ultimate, long-term plan for that is to put a building maybe the size of the Beacon there, built on parking, and it will be terrific,” Carney said. “So, long-term, we remain bullish.”

Looking for leadership Tom Yablonsky, executive vice president of the nonprofit Downtown Cleveland Alliance and keynote speaker at the forum, noted that property owners recently agreed to reauthorize a special improvement district that pays for cleaning and safety crews and other services across a growing downtown footprint. He applauded Landmark, K&D and other owners for looking beyond their immediate pain to commit to another five years of district assessments, through 2025. Now property owners are asking the alliance to find ways to promote downtown and bring people back, Carney said. He cheered the reopening of the downtown Heinen’s store, which was closed from May 30 until Wednesday, Oct. 7, and applauded public officials for preventing recurring vandalism and looting. “I believe that we do have leadership that’s working together,” he said. Price disagreed, describing a “leadership vacuum” that extends from Cleveland City Hall to Cuyahoga County to the chamber of commerce. “You’ve got Gov. DeWine down there every day or every couple of days on TV trying to push new programs forward and talk to people,” Price said. “We don’t have that here. We just have crickets.” From her vantage point at Playhouse Square, Vernaci once again took the long — and hopeful — view. “I think we need to come together and think about what are the opportunities,” she said, “because there are extraordinary opportunities on the table for us right now. Perhaps rather than thinking about how we can get Cleveland back to what it was, what could the new Cleveland possibly be? What are the problems we could solve? Instead of playing like these are the cards someone gave us, maybe these are the cards we actually wanted. And how do we play that?” Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

4 | CRAIN’S CLEVELAND BUSINESS | OCTOBER 12, 2020

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AKRON DEVELOPMENT

Akron considers bids for its Merriman Valley property Six proposals range from high-end home developments to preservation of natural lands BBY DAN SHINGLER

The city of Akron has six bids in hand and a huge decision ahead following its issuance of a request for proposals to build homes on 45 wooded acres the city owns in Merriman Valley on Theiss Road. The proposals range from plans to create 60- to 100-home subdivisions to an effort to preserve the land as it is. Given the affection many have for the valley and the nearby Cuyahoga Valley National Park, discussions of the matter at upcoming city meetings could be contentious. “I wouldn’t be surprised if it was contentious, but the difference here is the city started the process,” said Mark Holz, owner of the bidding Frontier Land Group in Beachwood. Holz hopes he not only wins the right to develop the property, but also wins over any opposition with plans he said will preserve the site’s natural assets. That includes retaining about 30% of the land as open space and leaving a 50-foot-wide buffer zone around the property that would, hopefully, retain all of its existing trees, Holz said. “It’s absolutely the worst part of our job — cutting down trees,” Holz said. Frontier’s plan is one of the tonier proposals for the project: 110 single-family homes with an average price of $442,000. Given that the city hopes the property will help it compete for residents with higher-income communities, such as Green and Bath Township,

Proposals for the site range from preserving the land to building high-end homes like this Frontier Land Group model. | FRONTIER LAND GROUP

turn to the Western Reserve Land Conservancy for help. “I’m going to call them and ask if they’d be our consultants on site development and preservation,” he said. Garrett said he was attracted by the land’s price and its proximity to the national park, the Cuyahoga River and other nearby recreational and natural areas. “You don’t find stretches of land like that in undeveloped areas anymore. This is a gold mine,” Garrett said. Garrett also said if the city or another entity can come up with some sort of alternative tax credits for the project, he’d forgo Akron’s current 15-year abatement on property taxes on the homes he builds. “I GAVE UP TRYING TO DO Petros DevelCITIES’ THINKING FOR THEM opment Co. of Cleveland is ofA LONG TIME AGO, BUT I’D BE fering $361,520 LYING IF I SAID I DIDN’T LIKE for the land and would create 76 THE POSITION WE’RE IN.” ranch and 20 ——Mark Holz, Frontier Land Group owner t w o - s t o r y homes, at a toHolz is hoping that approach wins fa- tal cost of $31 million, according to its proposal. vor from Akron officials. “I gave up trying to do cities’ thinkAkron’s Lockhart Development ing for them a long time ago, but I’d Co. is offering $370,000 for the land be lying if I said I didn’t like the posi- — or $649,000 if it installs its own infrastructure. It would sell home sites tion we’re in,” Holz said. Frontier is offering $600,000 for the to buyers who would contract with 45-acre parcel, well above the mini- their own builders, said owner Bob mum bid of $361,520 requested by Lockhart. Lockhart said his company would determine later how many lots the city. The other two highest offers are a to market. Finally, the Western Reserve Land $650,000 bid from Norton-based Cascade Development and a Conservancy is offering $361,520 for $725,000 bid from W@HH Partners the land, and it would preserve the site in its natural state, which it mainin Houston. Cascade proposes building 72 tains in its bid would be “the highest ranch homes on the site at an average and best use for the land.” price of $391,000. Which proposal is chosen is likely W@HH, an entity set up for the to fuel a lively debate. project that it calls the Woods at Deb Yandala — CEO of the ConHampton Hills, proposes building 65 servancy for Cuyahoga Valley Nasingle-family homes on half-acre to tional Park, a nonprofit whose mis1-acre lots at prices ranging from sion is to engage support for and $240,000 to $280,000. enhance public use of the park — exW@HH managing partner Darrell pects the matter to be contentious. Garrett, who grew up near “I imagine so. I can only say that Youngstown and spent his summers I’ve already been contacted by area as a youth in Akron, said he hopes to residents about our stance on this … assuage any potential opposition to and the people who reach me are development by making his project concerned about green space and as environmentally friendly as possi- the health of the Cuyahoga River,” ble, with modern “George Jetson” Yandala said. While she and others are advocathomes. If he wins, Garrett said he plans to ing for the Western Reserve Land

Conservancy’s proposal, the city must consider other aspects of the issue — not the least of which is generating revenue. Akron, like most cities, has seen its revenue drop and

demand for services increase during the time of COVID-19. “This is an example of a pretty tough situation, and they’re looking out for the best interest of the city,”

Yandala said. “I understand why cities need revenue. But I hope there will be a good planning process and they’ll consider … what it means to be an entrance to a national park.” City officials so far are only saying they’re happy there’s an appetite for the property. “We are pleased to see such interest in this site, both from the development and conservation communities. As is our process, we will evaluate all proposals and work to select the best pathway forward for Akron,” James Hardy, Akron deputy mayor for Integrated Development, said via email. The city has not yet determined when the matter will be discussed in a public forum, the first of which is likely to be a planning commission meeting, said Ellen Lander Nischt, press secretary for Mayor Dan Horrigan. Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

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REAL ESTATE

The Lumen takes the stage in Playhouse Square 318-unit apartment tower in downtown Cleveland’s theater district made its debut in July and is 27% leased BBY MICHELLE JARBOE

Josh Halpern didn’t just leave another downtown apartment building for the Lumen. He’s also dropping his law firm’s suburban office space in favor of working, long-term, from the Playhouse Square tower that he now calls home. Halpern, a 28-year-old attorney, moved into the Lumen a few weeks ago. The 318-unit building started leasing in July and is marketing its expansive common areas as “the ideal place to stay social while distancing.” The apartments are 27% leased and 18% occupied. The Lumen, owned by Playhouse Square, the nonprofit that oversees downtown’s theater district, made its debut during a disruptive summer for the downtown rental market. The coronavirus has cast a hush over the central business district, with major events canceled, office buildings largely empty, and restaurants and retailers struggling to stay afloat. Downtown’s residential vacancy rate is rising, thanks in part to the influx of more than 800 new units this year among the Lumen, the May on Public Square and the Beacon tower near East Fourth Street. And landlords are offering concessions to lure tenants. But Playhouse Square, with a rare ground-up project that celebrated its grand opening last week, is optimistic. During a recent tour, special adviser Art Falco said the building is attracting strong interest from potential tenants. Even in the midst of a pandemic, he believes the tower will take only a year to fill up. “We’re signing four to five new leases a week, which we hope to accelerate,” said Falco, who retired in 2019 from his longtime role as Playhouse Square’s president and CEO but stayed on to shepherd the Lumen. “Since the city’s been shut down, the theaters have been shut down, a lot of people don’t even know this building is finished. All in all, we’re pleased.” Apartments at the Lumen range from a 570-square-foot one-bedroom to a nearly 2,000-square-foot penthouse. They rent for $1,448 to $7,342 a month. Tenants pay extra for parking in the attached, 530-car garage, which also will serve theatergoers and downtown workers. Halpern rented one of the building’s most popular floor plans, a one-bedroom unit with a den that he’s using as an office. His 30thfloor perch offers views of Lake Erie, Progressive Field and the high-rises clustered around Public Square. He’s holding in-person meetings with clients on the Lumen’s fifth floor, a 22,000-square-foot amenity space that includes abundant seating, individual workstations and fitness facilities. The landscaped deck, atop the parking garage, is outfitted with a heated lap pool, cabanas and a shaded bar overlooking Euclid Avenue near East 17th Street. Eventually, Halpern expects to host events on the 35th floor, where a sky lounge and a small deck

The Lumen’s largely black and white lobby, off of Euclid Avenue, is accented with pops of red.

Light streams into a kitchen at the Lumen, where the first residents moved in during July.

Playhouse Square is promoting the Lumen’s spacious common areas, indoors and out, as particularly well-suited to life during a pandemic.

Photographs of Playhouse Square performances are scattered throughout the common areas at the Lumen.

“WE’RE SIGNING FOUR TO FIVE NEW LEASES A WEEK, WHICH WE HOPE TO ACCELERATE. SINCE THE CITY’S BEEN SHUT DOWN, THE THEATERS HAVE BEEN SHUT DOWN, A LOT OF PEOPLE DON’T EVEN KNOW THIS BUILDING IS FINISHED. ALL IN ALL, WE’RE PLEASED.” ——Art Falco, Lumen special adviser and former Playhouse Square president and CEO

The Lumen stretches above a sign welcoming theatergoers and pedestrians to the Playhouse Square district. PHOTOGRAPHS BY MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

showcase the lake and the city stretching eastward. “Cleveland’s never had this before,” said Halpern, who has lived downtown for about six years. “It’s a Chicago building, for sure.” Rents at the Lumen, where 70% of the units are one-bedrooms, shake out to an average of $2.48 per square foot, said Matt McClung of Greystar Real Estate Partners, the property manager. Those rates top out at $3.82 per square foot for the penthouses, on the tower’s 33rd and 34th floors. Playhouse Square, which has long treated real estate as a working endowment, teamed up with development manager Hines to build the Lumen. The $135 million project drew on a $15 million gift earmarked for a residential tower and garage, cash freed up through a tax-exempt bond deal and a relatively modest construction loan. Falco confirmed that Playhouse Square doesn’t necessarily view the Lumen as a long-term hold, though he said the nonprofit isn’t trying to sell the building today. “If the stars align and multifamily is still strong and there’s an interested buyer, we would entertain it,” he said. “If not, we feel good about refinancing. … What’s great is that we don’t have any pressure. That’s the bottom line.” Michelle Jarboe: michelle.jarboe@ crain.com, (216) 771-5437, @mjarboe

6 | CRAIN’S CLEVELAND BUSINESS | October 12, 2020

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Connecting workers to new skills This health and humanitarian crisis has had a disproportionate impact on employment for people of color. Here in Ohio, there is an urgent need for skill building — including re-skilling and up-skilling — to create a clear pathway to jobs that can deliver upward mobility and economic stability. To drive progress, Bank of America is investing $1 billion over four years to advance racial equality and economic opportunity, building on work we’ve had underway for many years. We’re helping to connect people to the skills, resources and experience needed to succeed by building partnerships with nonprofits and local government, and through our own recruiting and hiring. This includes partnerships with Community Colleges that serve predominately Black and Hispanic/Latino students, and public Historically Black Colleges and Universities and Hispanic Serving Institutions. In Ohio, we remain committed to supporting organizations that help people in our community get the skills they need.

Jeneen Marziani Ohio Market President

Strengthening pathways Here in Ohio, we’re partnering with local organizations to create pathways to better jobs, including: EDWINS Leadership and Restaurant Institute Youth Opportunities Unlimited Center for Employment Opportunities Cuyahoga Community College

To learn more, please visit bankofamerica.com/community

PERSONAL VIEW

The dirty story of FirstEnergy and how to fix it RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

BBY JERRY BOHINC

EDITORIAL

Yes on 68

t’s expensive to pass a school levy, particularly during a pandemic-induced recession. But wait until you see how expensive it is, ultimately, not to pass a school levy. That’s where we come down on Issue 68, the Cleveland Metropolitan School District’s campaign to renew its existing, 15-mill levy, which is set to expire at the end of this year and represents about 12% of the district’s operating budget, and to increase that levy by 5 mills. The levy could raise as much as $98 million a year over its 10-year term, with businesses paying about two-thirds of the cost. This is not an easy time to ask Cleveland property owners to pay more. We understand that. At the same time, the city that U.S. Census data recently identified as having the highest poverty rate in the nation among places with 200,000-plus residents has to think hard about what will help change that status. As we see it, a school district that produces better-educated students who are better-prepared to be part of the workforce of the future is high on that list. The levy is important to achieving that goal. Passing Issue 68 amounts THERE’S STILL A LONG to some short-term sacriWAY TO GO FOR THE fice for longer-term gain. It’s natural, in these DISTRICT TO MEET THE tough economic times, to FULL PROMISE OF THE wonder why the district didn’t just seek to renew CLEVELAND PLAN. the existing levy, without FAILING TO PASS ISSUE the additional millage. But as the district’s CEO, 68 WOULD BE A SERIOUS Eric Gordon, recently told SETBACK. Cleveland.com, that would be a step backward. “The honest answer to our community was if they simply renew the 15 mills, the district would then be required to make cuts to programming immediately after the levy passed, and it felt irresponsible to say to voters (to renew the tax) knowing that we’re going to make cuts,” he said. A significant factor here is the impact of the coronavirus. As Cleveland.com noted, officials estimate the district “spent nearly $23 million on expenses related to the pandemic,” in-

cluding more than $17 million on technology, “as the district found that many families did not have access to the internet or devices when schools closed in the spring.” Passage of Issue 68 is important for the school district to continue to make improvements that have resulted from implementation of the Cleveland Plan in 2012. Reading and math scores are up. The district now has a third-grade reading guarantee of 94.6%, according to state figures. The percentage of students with poor attendance has fallen. The graduation rate has risen to above 80%, from just over 50% when the Cleveland Plan was implemented. There’s progress in narrowing achievement/graduation gaps for Black and Latino students. The new “Say Yes” program makes it possible for district graduates, who meet strict requirements, to receive a tuition-free college or Pell-eligible trade or vocational education. There’s still a long way to go for the district to meet the full promise of the Cleveland Plan. Failing to pass Issue 68 would be a serious setback. The issue has the support of the Greater Cleveland Partnership, which last year vowed that it would cast a more critical eye on tax measures to assess their value, relative to their cost, to the region’s economic well-being. “Due to the importance of the CMSD levy for future generations, and an increased level of accountability through a 10-year term,” GCP said, it urged voters to pass Issue 68. It characterized the initiative as addressing “a severe and urgent societal need.” We agree. But not everyone does. Crain’s reporters Stan Bullard and Michelle Jarboe recently examined a well-funded opposition campaign to the levy that’s being paid for by something called Cleveland’s Future Fund LLC, a company formed Sept. 16, according to state incorporation records. “But it isn’t clear who, exactly, that company represents, and no one has stepped forward to put a name to their opposition,” they reported. Simply put, we have no patience for this. You want to oppose a levy — fine. But have the courage of your convictions to put your name to it, and let people evaluate your argument in the proper context. These shadowy efforts in elections have to stop.

Executive Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing Editor: Scott Suttell (ssuttell@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com

Cynicism means people believe others act with mistrustful self-interest and lack of integrity. Consider FirstEnergy Corp., which in return for monopoly advantage conceded watchdog rights to the Public Utilities Commission of Ohio and indirect control by the Ohio Legislature. Let’s review what has enfolded with FirstEnergy and its two Ohio nuclear plants. I submit all parties — PUCO, the Bohinc is CEO state, the Legislature, FirstEnergy and and managing the legal community acting as advisers member of — did less than their best. In July, federal Quintell, a agents arrested Larry Householder, the Cleveland-based speaker of the Ohio House of Represen- technology tatives, and several lobbyists on racke- development teering charges in connection with a $60 company with million bribery case related to a bailout roots to the TRW organization. of the state’s nuclear power plants. Investigations by the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission continue, and FirstEnergy and CEO Charles E. Jones regularly have denied illegality. Regardless of further inquiry, what we know is clear: FirstEnergy constructed and executed a most cynical plan against Ohio taxpayers. Because of low-cost energy from renewables and natural gas generation, the company found REGARDLESS OF its conventional electricity plants, coal and, most impor- FURTHER INQUIRY, tantly, its two Ohio nuclear WHAT WE KNOW IS plants were noncompetitive. Worse, the nuclear plants CLEAR: FIRSTENERGY were expected to be decom- CONSTRUCTED AND missioned sometime in the next two decades. Accruals ex- EXECUTED A MOST ist for that large cost, but it is CYNICAL PLAN possible the real cost of decommissioning is unknown AGAINST OHIO and probably underfunded. TAXPAYERS. What to do? FirstEnergy and its advisers — some of whom work for the best U.S. and Cleveland law firms — devised a plan. Separate the generating plants into a separate company, called Safe Harbor, and enter reorganizing bankruptcy. At the same time, lobby PUCO and state politicians to extract a surcharge fee on future customer bills to subsidize the nuclear plant production and restrict new renewable competition. This plan required serious lobbying in Columbus while employing the best bankruptcy and legal advice available. FirstEnergy got what it wanted. PUCO blessed its financial numbers, the bankruptcy court blessed the reorganization, and the Legislature blessed the subsidy. As a result, when the nuclear plants shut down, and if there are cost overruns not accrued, FirstEnergy will be in the clear, and Safe Harbor will be in trouble. The state will be called on to help or the plants will be kept operating after is unsafe to do so. Fast forward to the past few months. Federal agents have indicted Householder and four others and identified more than $60 million that flowed for lobbying to get FirstEnergy’s plan approved. The federal bankruptcy court has been asked to approve huge legal costs for FirstEnergy Solutions’ law firm. More embarrassment and indictments are likely. Regardless, that is not the whole story.

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

See BOHINC on Page 9

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

8 | CRAIN’S CLEVELAND BUSINESS | October 12, 2020

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Before the $60 million campaign, there was heavy lobbying with PUCO, publicity management and legalities with the bankruptcy court. In addition to the $60 million, FirstEnergy spent $40 million to get the plan executed, plus bankruptcy legal fees of possibly $68 million. Mind you, these are monies from public-approved rates from electricity users to manipulate state government and to extract the company from further exposure for the cost of decommissioning the two nuclear plants. Decommissioning may easily be more than $1 billion per plant. FirstEnergy is in the clear, however. But it doesn’t end yet. After the plan was apparently successful via a conservative $100 million in lobbying fees, $68 million in bankruptcy soft costs, and alleged corruption of state government, FirstEnergy announced it proposed to buy back stock to the tune of $300 million. So, the company avoids exposure to decommissioning, allegedly pays off politicians, and then buys back $300 million of its stock, increasing the stock market price substantially and helping management reach performance bonuses. Then the stock market reacted to the indictment scandal and FirstEnergy’s stock price plummeted by as much as 45%. The worst offense is a further blow to Ohio voters: loss of confidence in its government, the management of FirstEnergy and its legal advisers. FirstEnergy seduced Columbus institutions to its own favor, participated with allegedly corrupt politicians, evaporated $5 billion of company value, and avoided future responsibility for two nuclear plants that could make all the rest small change. We need change, especially in Columbus. We need to clean house at FirstEnergy. The voters should demand it. Our society ultimately depends on ethical standards, not strategies for getting away with the dubious, no matter how sophisticated and cleverly executed. How to fix this? I suggest first passing a simple “fast disclosure law” for the state. Any contribution, or promise of one, by any group must be reported to the Ohio Secretary of State disclosing the receiving party. Simi-

larly, the receiving party must report any funds or commitments within 48 hours, and the spending, or commitment to spend the money, disclosing the recipient. We then have then a simple “in and out” system to monitor political contributions in real time. We can set reasonable thresholds — say, over $500 for fast reporting — and the Ohio Secretary of State must post these flows online as soon as received. A sorting mechanism will reveal activity to and from interested parties. The extra burden of early strategy signaling is a sacrifice for restoration in Columbus’ uneven reputation to the voter. Fast, effective and legal. Do it now. The governor and the Legislature should also appoint A world of support that revolves around one axis: a lithe group to review the details of the whole sordid mess and report to the public. This group should not be from the Legislature or administration. The report’s focus should not be on any illegalities — that is for federal Connect with us | www.naipvc.com investigations — but to look at what happened to damage the public trust. Conflicts should be fully and fairly disclosed. It is time to remind everyone — legislators, executives, law firms, Offices in Medina 330.239.0176 | Cleveland 216.831.3310 | Akron 330.535.2661 utility commissioners — that unethical activity is just as www.naipvc.com wrong as illegal activity. Our country is not immune from corruption. On the contrary, we are morphing into what we do not want to admit: a Third World seediness. Finally, the fate of the nuclear plants should be revisited. Current financial performance for Safe Harbor has not yet been publicly disclosed. The proposition is being made that renewable energy, principally wind energy, is so inexpensive today that nukes are not competitive. However long-term forecasts over the next two or three decades for energy demand imply renewables cannot cover anticipated needs or deal effectively with temporary mismatches in demand. Advanced battery systems will provide three or four hours at maximum of temporary supply, so alternative clean energy sources remain important. The nukes, safely run, might provide base power that is environmentally clean and competitive. We should be sure that decommissioning is a wise decision if House Bill 6 funding is withdrawn or adjusted because of the scandal. Unfortunately, many today will not trust FirstEnergy, the Legislature, the administration or PUCO to provide the analysis.

You.

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BOUNCING BACK After years of cutbacks and change, the University of Akron is looking to the future. PAGE 12

EDUCATION

COURSE CHANGES

Hiram College’s recent restructuring resulted in the sunsetting of some programs and the introduction of a new institutional organization.

As costs rise and enrollments shrink, colleges and universities remake their academic structures BY RACHEL ABBEY MCCAFFERTY | As

costs rise and enrollments shrink, higher education is not an industry that can afford to stand still. Across the region, colleges and universities have taken on a host of redesigns and restructurings in recent years with the goal of finding efficiencies and boosting enrollment. Take the University of Akron and Hiram College, for example. Akron cut academic programs and shrunk the number of colleges it had, while also laying off faculty and experiencing leadership churn. Hiram underwent a broad process of change that resulted in the sunsetting of some programs and the introduction of a new institutional structure. But change has been taking place in more incremental ways across the region, too. At Youngstown State University, the institution trimmed the number of its colleges and academic departments in light of the COVID-19 pandemic. Walsh University recently restruc-

The University of Mount Union in 2017 began work on a three-college plan, with each college having its own dean.

Walsh University recently restructured its academic calendar to six eight-week terms in light of COVID-19 concerns.

tured its academic year, scheduling its programs into six eight-week terms. Ultimately, it’s about making sure the institutions of today are best designed for the future. For example, the changes to Walsh’s calendar allow students to take the same number of courses in the fall and spring as before, but to focus on a smaller number of courses at one time, said Michael Dunphy, interim vice president of academic affairs. It also gives students more control over their schedules, allowing them to skip a term when they need to, or schedule classes to finish degrees faster, especially at a time when more students are arriving at college with credits in hand from dual enrollment programs in high school. “We’re really trying to address the needs of students in this very complex market right now, where we can still give them a very high-quality education but do it in a way where they have more choices,” Dunphy said.

CONTRIBUTED PHOTOGRAPHS

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FOCUS | EDUCATION Academic redesign is a constant at institutions of higher education, said C. Todd Jones, president and general counsel of the Columbus-based Association of Independent Colleges and Universities of Ohio. Colleges and universities have to adapt as fields of academic study evolve and as students’ areas of interest change. And the changes are sure to continue. Locally, Cleveland State University is in the midst of this process, having formed task forces in areas such as academics, administration, and growth and innovation that are focused on creating recommendations for the future. And some reforms could even cross campuses. Take a recent announcement from the University of Akron and Cleveland State, which shared that the two institutions were looking into merging their law schools. It’s important institutions know themselves before adding or revamping programs, Jones said. Programs should build on an institution’s unique strengths. Declining enrollment can also be a driving force in these redesigns, he said. In Ohio, the pool of high school graduates is shrinking. That means, in an ever-more competitive environment, colleges and universities have to create programs that are attractive to new students. Enrollment was the big driver behind Hiram’s academic redesign process, said Liz Okuma, senior vice president and dean of students. The college wanted to make sure it had attractive, relevant programs to draw in students. Hiram ultimately cut some programs and added others, as well as switched some programs, like economics and philosophy, from majors to minors. This was such a dramatic change that Hiram’s leadership knew the process had to be a collaborative one, Okuma said. That meant that not only faculty, but students and alumni needed to buy in. That collaborative, transparent approach has carried forward to today, said vice president for academic affairs and dean Judy Muyskens. For example, she thinks it helped the college be nimble and adapt when the

Lessons learned: What makes a good academic redesign?

University leaders should think about involving staff, faculty and the community in conversations from the start BY RACHEL ABBEY MCCAFFERTY

Communication, data and transparency: If a university wants to successfully change its programs or processes, those factors are a good foundation. Those are some of the lessons learned through the many academic redesigns and restructurings that have taken place on Northeast Ohio’s campuses in recent years. When possible, university leaders should be thinking about the future and involving staff, faculty and the community in conversations about change early on, said Brien Smith, provost and vice president for academic affairs at Youngstown State University. The pandemic forced many institutions to change almost overnight, as going remote meant the loss of funds from dorms, parking and meal plans. There also were state budget cuts. At Youngstown State, the university found administrative efficiencies by reducing the number of its colleges and academic departments. It also laid off some staff. “We could have, and other universities could have, been looking at efficiencies a lot earlier, so there was a little more time to think about this,” Smith said. Faculty need to be involved in academic redesigns from the start, said Ashland University provost Amiel Jarstfer. Ashland has monitored its academic programs for years, watching the marketplace for changing student needs, but pandemic struck. The more streamlined structure the college had adopted, which gathered academic programs into larger schools and

fairs at Walsh University. For example, as Walsh moves toward more online and hybrid education, the university has offered additional training on the tools to its faculty members. And the process needs to be collaborative, especially with something complex such as changing the academic calendar, Dunphy said. When Walsh moved to eightweek sessions, it wasn’t just an academic consideration. Student affairs had to be involved “THERE’S A LOT to weigh in on how it would OF MOVING PARTS affect dorm life, for example. “There’s a lot of moving THAT NEED TO BE parts that need to be considCONSIDERED.” ered,” he said. — Michael Dunphy, interim One benefit of such a broad vice president of academic change is that it offers a affairs at Walsh University chance for staff and faculty the support of the people who have who may not often work together to do just that. And that can help to implement it. “And so you have to spend the change the culture of an institution time with the individuals that are for the future, Dunphy said. That was the case at Hiram Colgoing to be impacted,” said University of Akron executive vice presi- lege. After its comprehensive redesign, the college has made ongoing dent and provost John Wiencek. Often, that happens after the fact, review of data a greater part of its he said, as institutions try to imple- decision-making processes. For example, taking a close look ment change and then step back when it’s not working as planned. at the data is now part of the proSo leaders have to stay strong and cess when the college is looking to stick with the “fundamental idea” of hire new faculty, said vice presithe change, while being flexible on dent for academic affairs and dean how to achieve it, he said. And let- Judy Muyskens. That includes enting people be part of the change rollment in individual academic areas, but also the number of credhelps them let go of the old. When going through drastic it hours a faculty member in those changes like these, it’s important to areas generates. “We look at the numbers, and we support faculty with the tools they need, said Michael Dunphy, inter- make our decisions based on the im vice president of academic af- numbers,” Muyskens said. the COVID-19 pandemic made a more concentrated effort necessary. The university started to look at programs to enhance or phase out in April. Sunsetting programs can be painful, he said, and acknowledging that is important. Communication needs to be clear and intentional. Ultimately, no matter how good an idea is, it won’t succeed without

gave them administrative support, also eased that transition and made communication easier. The University of Akron has seen a

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variety of changes in recent years, including a restructuring of its colleges and schools. The university went from 11 to five, which could lead to

greater efficiencies and more collaboration among programs, said executive vice president and provost John Wiencek. And that could lead to new program offerings. He’s seeing these kinds of changes across higher education, including at the University of Idaho, where he worked before coming to Akron. In Idaho, the university didn’t eliminate colleges, but it did move toward more shared services and interdisciplinary degrees, he said. “In general, I think the driving force behind all of this is the demographics,” Wiencek said. There are fewer high school graduates, he said, and more adults are looking to add credentials to their resumes. So the number and kind of students that universities serve are changing. Changes to the University of Mount Union’s structure went in the opposite direction of Akron but served a similar purpose. The university’s prior structure had about 145 faculty members reporting to one dean, a model the institution had outgrown. “That’s a model that existed for places that were small, traditional liberal arts colleges with, say, maybe 50 to 80 faculty,” said Jeff Breese, provost and vice president for academic affairs. Breese arrived at Mount Union in 2017 and in his first year got to work on a plan. The university convened a working group for the redesign, which quickly determined that faculty needed leaders who could focus on a small group of programs. A three-college plan, where each college had its own dean, was born. It was important that the new deans be able to work independently but also collaboratively. As colleges and universities revamp their academic offerings, they’re creating programs that are “more integrated and more applied,” said Lynn Pasquerella, president of the Association of American Colleges & Universities in Washington, D.C. The time for siloed programs has passed, she said, and students need the chance to practice the skills they learn in the classroom.

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OCTOBER 12, 2020 | CRAIN’S CLEVELAND BUSINESS | 11

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FOCUS | EDUCATION

University of Akron looks to put challenges in the past New leadership and academic structures put the institution on stable ground, officials say BY RACHEL ABBEY MCCAFFERTY

The University of Akron has been through a lot of changes in recent years: new presidents, plural. An academic program review that did away with almost 20% of its degrees and degree tracks. Most recently were a restructuring that cut or merged about half of its colleges and the layoffs of almost 100 union faculty members. But board of trustees chair Joe Gingo has never felt better about the future of the institution. “With where we are now, we don’t have to be sitting around worrying if the university’s going to be there,” Gingo said. “The university is going to be there. And now again, we can focus on our strengths and build on those strengths as we go forward.” That’s because the university has been able to cut its budget, its faculty and its program offerings — or, as Gingo put it, to “right-size” things to match current enrollment. “Now, there’s a lot of reasons why our student body declined, but it did, and you can’t ignore that,” Gingo said. Much like Gingo, UA president Gary L. Miller, who joined the university in October 2019, said he is “very optimistic” about the institution’s future. “I was optimistic before COVID, and I’m optimistic now,” Miller said. In his first year, Miller has changed the university’s leadership structure, hiring a provost, and has overseen a restructuring of the colleges and schools. The university also recently announced the hiring of a new chief

“We didn’t have that luxury before,” he said. Gingo said the plan had been to make those personnel cuts over time, through attrition, but the COVID-19 pandemic meant a faster approach was necessary. And using force majeure actually meant the university could focus on its areas of strength and do more “surgical” cuts than across-the-board ones, he said. Such sweeping layoffs aren’t without controversy, however. The Akron chapter of the American Association of University Professors tried to block them but was overruled by an arbitrator. Akron AAUP president Pamela Schulze said the relationship between the union and the administration has been strong in recent years, despite some issues raised by faculty about leadership prior to Miller’s arrival. The two parties had even negotiated a new contract prior to the pandemic, but that was set aside when COVID-19 complicated the university’s financial picture. Schulze said it quickly became clear that the administration intended to make some dramatic changes, and the relationship changed, becoming more “adversarial.” The administration was set on cutting faculty jobs, she said. Still, she thinks the university is in a stable position now. And she thinks it will be around for the future, as long as it provides the region what it needs. But leaders going forward need to figure out what the institution needs to be. And that’s a problem that’s bigger than the University of Akron, Schulze said. She sees it as

The University of Akron in recent years has cut its budget, its faculty and its program offerings, and all of that has put the institution on better footing in terms of its current enrollment size, board chair Joe Gingo says. | CONTRIBUTED

financial officer. Dean searches also are moving forward, as many of those positions have been interim in recent years. The college restructuring was focused on the future, said executive vice president and provost John Wiencek, who joined UA in April. In shrinking the number of schools and colleges, the university looked for efficiencies and ways for programs to better share resources. And by bring-

ing programs and faculty together, Wiencek thinks it could lead to new curricula offerings. Miller said it’s important that the university begin reestablishing innovation and leadership at the mid-level of the institution. When an organization is in turmoil, everything rises to the top, he said. But the university has a lot of innovation at the faculty and staff level, as is evidenced by how quickly everyone has pivoted

during COVID. UA needs to “mine” that creativity, he said. The strategic planning process that began before the COVID-19 pandemic will start again soon, Miller said. And it will be critical to engage the faculty, staff and community in that future. Additionally, while difficult, Miller said the faculty layoffs the university made will allow it to be more strategic in its hiring going forward.

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“I WAS OPTIMISTIC BEFORE COVID, AND I’M OPTIMISTIC NOW.” — UA president Gary L. Miller

part of a trend to defund state higher education systems that’s creating an ever more tiered system. And teachers and faculty face a system where, increasingly, they have more work, but less academic freedom and shared governance. At the University of Akron, Schulze wants to see shared governance increase, especially in decisions of curriculum. People feel “afraid and insecure,” she said. Miller said leadership is working to better integrate the university’s shared governance model. And, ultimately, he thinks the faculty at the institution are engaged, and that there’s support for the university. “There’s a lot of frustration about the final outcome, and that’s what’s shown a lot,” Miller said. “But people love this place. And I think we’ll co-

alesce around the future and not the past.” Miller thinks all urban universities, including the University of Akron, need to be thinking about what their campuses will look like going forward. That’s one reason UA is working more closely with Cleveland State University, which faces similar challenges and opportunities. The two universities are exploring the possibility of merging their law schools, but Miller said it’s not an “efficiency exercise.” In fact, collaborations like this tend to bring more bureaucracy, he said. “We’re collaborating for new opportunities for students, for new opportunities for legal education. We want to be a model,” he said. “This is something, if it’s going to work, we’ll have to invest in.” And despite increased collaboration, Miller wants people to know that the two universities intend to stay that way: as two separate universities in their respective cities. Universities across the country are evaluating their strengths and weighing what makes them stand out, Akron Mayor Dan Horrigan said. Growing the population of the city is critical to Akron, and the university is a “key component” of that, Horrigan said. He’d like to see enrollment grow, but he knows the city has to do its part toward that goal, making sure there are internship and job opportunities for students. “We need to have that symbiotic relationship, where our growth is intertwined with each other,” he said. The challenges are far from over, but after a turbulent few years, the University of Akron might now be in a place where it can turn the page on the past and look to the future. Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com

“My bank told me ‘We’ll figure it out - together.’” At First Federal Lakewood, you’re choosing much more than a bank. You’re choosing an organization made up of people who are committed to reinvesting in our community and helping it thrive - just like you. We’re here to help you meet today’s goals and invest in tomorrow.

DATA SCOOP

Most local private high schools on list say they’re back in school full time BY CHUCK SODER

Private high schools in Northeast Ohio are by and large back in session, in person, five days a week. Of the 43 schools on the full digital version of our Private and Parochial Schools list, 31, or 72% said they are in school full time, though the vast majority said they provide exceptions for some students. Just three schools, 7%, are fully virtual, and the other nine, or 21%, are taking the hybrid route where some classes are virtual and others are in person. Ohio public schools, by contrast, have been less likely to open their doors full time. Just 53% of Ohio public school districts planned to start school in person full time, and 9% planned to start all virtual, judging by figures Gov. Mike DeWine announced on Aug. 11. And though the virtual group is small, it includes the Cleveland Metropolitan School District and several other large urban districts. Granted, those percentages may have changed significantly in one direction or the other since Aug. 11, influenced by the degree to which the coronavirus has spread in different regions and school efforts to adapt to it. Data for the list was collected later, through September. So are local private high schools attracting lots of new students looking to attend school in person? No, judging by responses 40 schools gave to this question:

How private high schools are responding to COVID-19 We asked how private high schools are operating at the moment: Virtually, in-person or with hybrid attendance? All 43 schools on our list responded. All virtual, all students 2 All virtual, with exceptions for some students 1 All in-person, all students 3 All in-person, with exceptions for some students Hybrid: At least 50% of school week is in person 6 Hybrid: Less than 50% of school week is in person 3 0

CRAIN’S CLEVELAND BUSINESS GRAPHIC

 To what degree if at all has the pandemic affected fall enrollment for this high school to the best of your knowledge?” Seventeen schools, 42.5%, picked “Little/no change.” Other respondents were about evenly split between increases and decreases. The figures in the list back up that assertion: Total fall enrollment dropped by 1.8% when you add up figures for the 41 schools that provided figures for 2019 and 2020. And that percentage holds

 “What steps is this school taking (or planning to take when open) to prevent the spread of COVID-19?” Of the 15 choices inspired by CDC guidelines, schools on average selected more than nine of them. Nearly every school picked “Increased cleaning/disinfection,” “Promoting behavior change — hygiene/distancing/etc.” and “Modified classroom layouts.” Just over half of schools, 23, picked “Restricting extracurriculars,” making it one of the least popular choices. The least popular answer was “Closed cafeteria for eating” (selected by 12 schools), but 32 picked “Offering packaged meals.” Chuck Soder: csoder@crain.com, (216) 771-5374, @ChuckSoder

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steady even when you only look at schools planning to hold all classes in person. Don’t blame local Catholic schools: Though their enrollment has been slowly declining for years, this year’s decline, 1.6%, was slightly lower than the decline for the entire list. Even so, they still completely dominate the top 10, led by St. Ignatius High School at No. 1. Schools on the list also say they’re following many of the recommendations from the Centers for Disease Control and Prevention, judging by their responses to this question:

McCARTHY LEBIT CRYSTAL LIFFMAN Expect More. Get More.

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CRAIN'S LIST | PRIVATE AND PAROCHIAL HIGH SCHOOLS Ranked by fall 2020 enrollment AVERAGE TUITION BEFORE AID/ AFTER AID

RANK

SCHOOL

STUDENTS (GRADES 9-12) FALL 2020/ FALL 2019

1 2 3 4 5 6 7 8 9 10 11

SAINT IGNATIUS HIGH SCHOOL, Cleveland 216-651-0222/ignatius.edu

1,514 1,540

$18,000 $9,000

Boys only; Day school

13:1

120 86%

99%

Y/Catholic

The Rev. Raymond P. Guiao, president

WALSH JESUIT HIGH SCHOOL, Cuyahoga Falls 330-929-4205/walshjesuit.org

983 1,015

$12,700 $9,630

Coed; Day school

10:1

80 80%

99%

Y/Catholic

Karl Ertle, president

ST. EDWARD HIGH SCHOOL, Lakewood 216-221-3776/sehs.net

910 956

$17,500 —

Boys only; Day school

12:1

78 83%

94%

Y/Catholic

James Kubacki, president

ARCHBISHOP HOBAN HIGH SCHOOL, Akron 330-773-6658/hoban.org

830 815

$11,800 $8,600

Coed; Day school

13:1

67 76%

92%

Y/Catholic

Tom Curry, president

PADUA FRANCISCAN HIGH SCHOOL, Parma 440-845-2444/paduafranciscan.com

750 780

$12,750 $7,500

Coed; Day school

10.6:1

75 66%

90%

Y/Catholic

Father Allan DaCorte, president

MAGNIFICAT HIGH SCHOOL, Rocky River 440-331-1572/magnificaths.org

716 701

$16,450 $10,940

Girls only; Day school

9:1

80 65%

99%

Y/Catholic

Moira Clark, president

NOTRE DAME-CATHEDRAL LATIN SCHOOL, Chardon 440-286-6226/ndcl.org

710 727

$13,800 —

Coed; Day school

12:1

59 56%

99%

Y/Catholic

Michael J. Bates, president Joseph A. Waler, principal

SAINT JOSEPH ACADEMY, Cleveland 216-251-6788/sja1890.org

676 705

$15,560 $11,990

Girls only; Day school

12:1

64 81%

96%

Y/Catholic

Kathryn H. Purcell, president

ST. VINCENT-ST. MARY HIGH SCHOOL, Akron 330-253-9113/stvm.com

630 600

$11,750 $9,000

Coed; Day school

12:1

51 78%

91%

Y/Catholic

Tom Carone, president

HOLY NAME HIGH SCHOOL, Parma Heights 440-886-0300/holynamehs.com

570 590

$10,650 $8,300

Coed; Day school

15:1

38 67%

99%

Y/Catholic

Shelbrey L. Blanc, president Karen L. Carter, principal

CUYAHOGA VALLEY CHRISTIAN ACADEMY, Cuyahoga Falls 330-929-0575/cvcaroyals.org

561 581

$11,250 $8,800

Coed; Day school

10:1

58 78%

98%

Y/Nondenominational Christian

Jason Spodnik, president

HAWKEN SCHOOL, Gates Mills 440-423-4446/hawken.edu

549 530

$31,325 $18,875

Coed; Day school

8:1

70 75%

100%

D. Scott Looney, head of school

TYPE (ROOM AND BOARD)

STUDENT: TEACHER RATIO

# FACULTY/ % ADV. DEGREE

% GRADS 4-YEAR COLLEGE

RELIGIOUS?

HEAD OF SCHOOL

SOUND SOLUTIONS FOR PRIVATE & PAROCHIAL SCHOOLS Michael Mullee + maloneynovotny.com + 216.363.0100

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

CLEVELAND CENTRAL CATHOLIC HIGH SCHOOL, Cleveland 216-441-4700/centralcatholichs.org

530 565

$9,100 —

Coed; Day school

10:1

58 47%

86%

Y/Catholic

Leo P. Hyland, president Sister Allison Marie Gusdanovic, principal

LUTHERAN HIGH SCHOOL WEST, Rocky River 440-333-1660/lutheranwest.com

495 500

$11,650 —

Coed; Day school

20:1

47 75%

93%

Y/Lutheran

Chris Steinmann, superintendent Michael Waugh, principal

LAKE CATHOLIC HIGH SCHOOL, Mentor 440-578-1020/lakecatholic.org

490 515

$11,100 —

Coed; Day school

15:1

34 70%

98%

Y/Catholic

Mark Crowley, president

GILMOUR ACADEMY, Gates Mills 440-473-8050/gilmour.org

474 455

$28,825 $14,267

Coed; Boarding and day school ($16,500)

9:1

51 67%

95%

Y/Catholic

Kathleen C. Kenny, head of school

VILLA ANGELA-ST. JOSEPH HIGH SCHOOL, Cleveland 216-481-8414/vasj.com

460 458

$9,300 $7,500

Coed; Day school

12:1

30 50%

96%

Y/Catholic

Richard J. Osborne, interim president

ELYRIA CATHOLIC HIGH SCHOOL, Elyria 440-365-1821/elyriacatholic.com

433 420

$8,800 —

Coed; Day school

13:1

33 65%

98%

Y/Catholic

Annie Heidersbach, president

UNIVERSITY SCHOOL, Hunting Valley 216-831-2200/us.edu

420 423

$34,405 $14,575

Boys only; Day school

7:1

60 84%

100%

Patrick T. Gallagher, head of school

WESTERN RESERVE ACADEMY, Hudson 330-650-4400/wra.net

402 400

$40,975 $23,030

Coed; Boarding and day school ($22,300)

8:1

50 86%

100%

Suzanne Walker Buck, head of school

SAINT MARTIN DE PORRES HIGH SCHOOL, Cleveland 216-881-1689/saintmartincleveland.org

399 387

$17,500 $400

Coed; Day school

13:1

31 48%

60%

Y/Catholic

Charles "Chaz" Napoli, president

HATHAWAY BROWN SCHOOL, Shaker Heights 216-932-4214/hb.edu

363 375

$32,544 $18,500

Girls only; Day school

7.9:1

53 83%

100%

Fran Bisselle, head of school

LUTHERAN HIGH SCHOOL EAST, Cleveland Heights 216-382-6100/lutheraneast.org

345 342

$9,961 —

Coed; Day school

15:1

25 40%

86%

Y/Lutheran

Andrew Prusinski, principal

BENEDICTINE HIGH SCHOOL, Cleveland 216-421-2080/cbhs.edu

320 300

$12,400 $8,600

Boys only; Day school

12:1

29 71%

90%

Y/Catholic

Ryan Ryzner, president, principal

TRINITY HIGH SCHOOL, Garfield Heights 216-581-1644/ths.org

317 355

$12,500 $10,200

Coed; Day school

11:1

29 32%

95%

Y/Catholic

Sister Shawn Lee, president

BEAUMONT SCHOOL, Cleveland Heights 216-321-2954/beaumontschool.org

315 325

$16,500 $13,200

Girls only; Day school

9:1

38 83%

100%

Y/Catholic

Wendy A. Hoke, president

CARDINAL MOONEY HIGH SCHOOL, Youngstown 330-788-5007/cardinalmooney.com

314 352

$9,000 $6,900

Coed; Day school

10:1

31 65%

82%

Y/Catholic

Thomas Maj, president

CENTRAL CATHOLIC HIGH SCHOOL, Canton 330-478-2131/centralcrusaders.org

300 325

$9,000 $6,200

Coed; Day school

15:1

42 70%

99%

Y/Catholic

Dan Gravo, president

LAUREL SCHOOL, Shaker Heights 216-464-1441/laurelschool.org

230 254

$30,124 $16,148

Girls only; Day school

5:1

46 85%

100%

Ann V. Klotz, head of school

ST. PAUL HIGH SCHOOL, Norwalk 419-668-3005/norwalkcatholicschool.org

203 199

$4,280 —

Coed; Day school

11:1

19 53%

82%

Y/Catholic

Martin Linder, president

Researched by Chuck Soder: csoder@crain.com | Information is supplied by the schools.

Get all 43 schools and +270 executives in Excel format. Become a Data Member: CrainsCleveland.com/data October 12, 2020 | CRAIN’S CLEVELAND BUSINESS | 15

P015_CL_20201012.indd 15

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E-COMMERCE

From Page 1

More broadly, e-commerce sales grew to 16.1% of all retail sales in the second quarter of 2020, up from 10.8% a year earlier, according to U.S. Census Bureau data. Bank of America estimates Amazon currently has about 44% of the U.S. e-commerce market share. That’s up from 40% in 2018. Walmart.com is a distant second. But Amazon is a demanding partner for online businesses, charging significant fees for its services. That’s why most businesses also rely on other online marketplaces — Walmart.com, eBay or Esty, for example — or sell through their own websites. While their websites allow marketers to keep a larger percentage

of each sale, the others, Amazon in particular, attract more (typically, many more) shoppers. And it’s not just consumer products like toys. There are even digitally native companies growing in the business-to-business world. Green Paper Products LLC (GPP) in Highland Heights sells biodegradable cups, cutlery and other containers, mostly to cafes and food trucks. “We’re able to provide smaller quantities than (customers) are able to get if they go through traditional food service suppliers,” said Aaron Saks, general manager of the family-owned business. “Some of the small restaurants and food trucks don’t have a lot of space to store inventory. They can order one box at a time.” Saks said he expects the business to grow in the post-COVID world. He said he expects salespeople to travel less,

North Randall online seller OrangeOnions attracts young girls and their parents shopping on Amazon or its own website to its line of Playtime by Eimmie dolls, accessories and doll furniture. CONTRIBUTED

and restaurant owners will be reluctant to have salespeople coming into their places of business. He said 75% of GPP’s business is business-to-business, with the rest business-to-consumer. GPP sells through Amazon but also through its own website.

To keep the most dollars in-house, online retailers like GPP and OrangeOnions build their websites for direct sales. That’s because Amazon takes a heavy percentage, starting between 8% to 15% of the cost of any sale. Adding fulfillment services — shipping and han-

SHE LEADS SOME OF

NORTHEAST OHIO’S MOST

WORKERS. C

oronavirus, record unemployment, and a huge dip in volunteering meant more Clevelanders in need of help, and fewer people able to give it. But for the Greater Cleveland Food Bank, new challenges just meant they needed new solutions. And with proactive community partnerships, touchless food pickups, and the hard work of dedicated Clevelanders, they were able to support more people than they even expected.

For Kristin Warzocha, President and CEO of the Greater Cleveland Food Bank, giving up wasn’t an option.

“IT WAS NEVER A MATTER OF IF, BUT HOW,” Warzocha said.

The John Carroll University grad has been with the Greater Cleveland Food Bank for 20 years and was named one of Crain’s 2020 Women of Note. JCU solidified her lifetime passion for volunteering when she discovered the difference she could make. She didn’t realize it would shape her future.

“I HAD NO IDEA I COULD TURN IT INTO A CAREER,” she said. Warzocha said her education prepared her to serve and lead—a powerful combination that has allowed her to make a huge impact on Cleveland; working, advocating, and fighting for those whose voices often go unheard.

Jay Miller: jmiller@crain.com, (216) 771-5362, @millerjh

P016_017_CL_20201012.indd 16

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In 2019, the Greater Cleveland Food Bank served more than 350,000 people in Northeast Ohio. Without the Food Bank, and without Kristin, many Clevelanders wouldn’t know where to turn.

From Page 3

Find her story and others at jcu.edu/humanimpact

BRAVE YOUR QUEST

16 |Crain's CRAIN’S ad CLEVELAND final.indd 1 BUSINESS | OCTOBER 12, 2020

dling returns — adds to Amazon’s fees. Perhaps as important, it also costs more to get top-of-the-page position in a product search on Amazon. Shoppers — whether they are in a store or on Amazon — shop by category, said Aaron Spott of eCommerce Traction, a local e-commerce consultancy. They go down an aisle and look for a product. The trick for a seller is to win what Spott calls “mindshare,” consumer awareness of their product, so shoppers will search by brand name, not product category. Because Amazon sells top-of-thepage search listings, the only way for a seller to win in the long run, Spott said, is by building a brand relationship with customers, often through advertising on Google and other online operators. “The challenge for digitally native brands or brands relying on digital acquisition is you’ve got to win that mindshare. That allows you to be top of mind when someone searches that category,” he said. “If you’re relying on Amazon, it puts you in a tough position because they control who goes where. They will sell the position to anybody.” The ease of entry lured Leeron Azoulai into a digital-only business, Loop, a little more than two years ago. He and a friend both got puppies at the same time and couldn’t find dog collars they liked. “We couldn’t find the goods we wanted, so we thought, ‘What if we just made what we wanted?’ ” he said. His background was in digital product management, and his friend was a graphic designer. So they designed products that met their needs in terms of style and quality. They started looking for a manufacturer and creating products. Then friends started taking an interest in the products they were making. “We just had fun with it; we really had no expectations,” he said. “I don’t want to say ‘easy,’ but it’s easier to start in e-commerce than in full-blown retail.” With their backgrounds, Azoulai said, he and his friend could throw together a website and could do enough social media and paid advertising to develop a small business reaching customers all over the country in a very competitive market segment. “We were able to do it without putting much money into it,” he said. So Loop became a side business for the pair. It lasted until March. “It never was to the point where it was paying us, so we had to choose to focus on our real jobs,” he said.

To that end, Madabhushi earlier this year entered into contracts with biopharmaceutical companies AstraZeneca and Bristol-Myers Squibb. Both companies will provide the Center for Computational Imaging and Personalized Diagnostics with data from completed clinical trials on immunotherapy and lung cancer. That kind of access is unique, Madabhushi said. Using a completed data set helps researchers validate the findings of the artificial intelligence. Looking forward, that AI could be used to identify which patients are likely to react well to immunotherapy. These partnerships were years in the making. Madabhushi’s team is working with Vamsidhar Velcheti, a director of thoracic oncology at NYU Langone who had previously been in Cleveland, on these projects. Madabhushi said he first connected with Velcheti about six years ago.

8/25/20 10:53 AM

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KAULIG

From Page 1

Following that stretch, the top four drivers compete for the Xfinity Series crown in the Desert Diamond Casino West Valley 200 on Nov. 10 at Phoenix Raceway. It’s conceivable that Kaulig Racing, which had 10 top-five finishes before racking up 27 this year, will enter the final race of the year with its two fulltime drivers in contention for a title. “It would be absolutely incredible for our organization,” Kaulig said of the possibility.

Starting from scratch When Chris Rice, an industry veteran who has worked in every elite NASCAR series, was asked to lead Kaulig Racing, the organization “had nothing,” Rice said. In its fifth year, the team has more than 30 full-time employees and a 90,000-square-foot racing facility in North Carolina. The business end of the racing company is run from Hudson, while Rice, Kaulig Racing’s president, oversees the day-to-day duties in Welcome. This year, Kaulig Racing, which had been paying Richard Childress Racing for the services, brought its engineering department in-house. Having a pair of full-time engineers consistently around the shop has “made a huge difference,” Kaulig said. It’s shown in the results, which include 49 top-10 showings this year. A.J. Allmendinger, a 38-year-old veteran of 371 races on the Cup Series, won the EchoPark 250 on June 6 at Atlanta Motor Speedway and has been a top-10 finisher in all but two of his nine races as a Kaulig team part-timer. The star of the show, though, has been Haley, who was 12th in the Xfinity standings in 2019, his first season with Kaulig Racing after Rice recruited the then-19-year-old standout on the NASCAR truck circuit. Haley drives the No. 11 Chevy that is sponsored by LeafFilter and has wound up in the winner’s circle three times since mid-June. His two-year deal is up after this season, and he said he’s had “talks with a lot of different teams” about 2021. “I love Kaulig Racing and I want to be there for a long time, so if I could strike a deal with Kaulig to do a few more years and have some more success and see where that goes, that would be ideal,” Haley said.

Ross Chastain, left, and Justin Haley, right, drive Kaulig Racing’s two full-time entries on NASCAR’s Xfinity Series. | KAULIG RACING

The organization shares that sentiment — “We’re definitely working on some things, and hopefully we’ll see him back in the car for 2021,” Rice said — but a deal has yet to be worked out. Drivers, who are paid a salary and get a cut of the race winnings, typically bring a sponsorship to the team. That deal can cover a majority of the racing team’s operating costs. Haley’s case is a bit different because he was discovered by Rice and struck a deal with Kaulig’s LeafFilter. He seems like a shoo-in to eventually make the leap up to the Cup Series. But will Kaulig Racing join him?

Cup could be next NASCAR’s Cup Series has a charter system that guarantees 36 teams entry and a share of the purse for each points race. Teams can sell their charters — a rule that recently resulted in Michael Jordan and Denny Hamlin starting a team that will feature driver Bubba Wallace. Kaulig thinks his racing team could have a full-time entry in the Cup Series as soon as 2022. “I wouldn’t put that down as a hard goal, but it’s looking like we’re moving in that direction,” he said. That timeline would coincide with the introduction of the Next Gen car model that NASCAR has planned for 2022. It could also be a good time for Haley, should he re-sign and want to get a third Xfinity season under his belt, to make the leap during a year in which he’ll turn 23. The jump to the Cup Series would be a “big” one, Kaulig said.

“THE RESEARCH THAT I DO AND THE PROJECTS I WORK ON, I CHOOSE THEM BECAUSE I WANT TO SEE THE TRANSLATION OF THESE TOOLS INTO THE REAL WORLD.”

have much representation for non-white d e m o g ra p h ics. But artificial intelligence could be used to find subtle differ— Anant Madabhushi, director of the Center for ences and creComputational Imaging and Personalized Diagnostics at CWRU ate better models for the Much of the work of the Center for future, Madabhushi said. And he’s been intentional about Computational Imaging and Personalized Diagnostics has focused on making sure he and his team secure cancer, but AI could be used to make the intellectual property for their a difference in other areas of medi- work. If he wants industry to be interested in working with them — and he cine as well. Madabhushi is big on the big pic- does — that’s important. “The research that I do and the ture for his work. He sees the way it can have a global impact, and he projects I work on, I choose them beseeks out partnerships around the cause I want to see the translation of world. And he sees how it could help these tools into the real world,” Madalleviate some of the issues of racism abhushi said. and health inequality facing medicine. Many of the existing models for Rachel Abbey McCafferty: (216) the progression of diseases don’t 771-5379, rmccafferty@crain.com

Matt Kaulig has entrusted industry veteran Chris Rice, right, to lead a Kaulig Racing team that has become a title contender on NASCAR’s Xfinity Series. | CONTRIBUTED

It’s more expensive, more difficult and more competitive. Finding lucrative sponsorship deals is imperative.

“It’s definitely something that we would love to go and do, but we want to do it right,” Rice said. “We don’t want to go and do the Cup Series and

run 35th. We want to be able to go and compete, and we know it’s going to be another starting point.” First, Kaulig Racing wants to be an Xfinity “powerhouse,” Rice said. Kaulig said a third “and maybe a fourth” full-time car could be added to the racing company’s Xfinity team in 2021. The group also will compete in some Cup Series races, he said. Haley, representing Kaulig, was 13th in the 2020 Daytona 500. The driver, while competing for Spire Motorsports, won the 2019 Coke Zero 400 at Daytona after the wreckedmarred Cup Series race was called because of rain. Whether it’s the Xfinity or Cup Series, Kaulig Racing’s goal is the same. “When Matt Kaulig builds a program or when he builds a business, it is expected to get to the top of the top level, so I knew we would get there,” Rice said. “But I didn’t think we’d get there this fast.” LeafFilter, which Kaulig acquired outright in 2015, also has had a rapid rise. The former University of Akron quarterback’s family of companies, led by its gutter protection business, are up about 80% this year. Revenues should be “well over” $1 billion for the first time, Kaulig said. As people have spent more time at home and invested in their properties, LeafFilter has thrived. The company has added 22 satellite locations this year, Kaulig said. The pandemic has significantly reduced the number of times he’s visited his racing facility in North Carolina. Still, Kaulig talks to Rice every day, and the owner can’t wait to see what his team has in store in the next four weeks. “All you have to do is get into that championship race and then anything can happen,” Kaulig said. Kevin Kleps: kkleps@crain.com, (216) 771-5256, @KevinKleps

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David M. Toth has joined Winding River Consulting. Toth will serve as a consultant with a focus in marketing and business development. “I am really exited to be able to demonstrate the value of using data to drive clients’ profitability,” said Toth. “Our clients will benefit from using cutting edge technology to deliver services to their clients in an otherwise traditional industry.“ Toth is a graduate of Miami University of Ohio with a BA in political science.

Matthew Matheney, Esq. has joined Porter Wright as a partner in the firm’s Bankruptcy, Workout & Creditor’s Rights group. Matt has extensive experience representing creditors in all aspects of bankruptcy proceedings and receiverships, including serving as counsel for receivers. He counsels clients on loan transactions, breach of contract, workouts, forbearance agreements, foreclosures and fraud claims, terms and conditions for sale, warranties, purchase orders, and other commercial contracts.

INVESTMENT FIRM

Citymark Capital Citymark Capital welcomes Eric Louttit as Managing Director of Real Estate Investments. Mr. Louttit brings more than 20 years of institutional real estate experience having served in various leadership, investment, development and finance roles in the industry. In this role, Mr. Louttit identifies investment opportunities from Citymark’s expansive national network. He is responsible for sourcing, underwriting and performance of investments. For more information, visit www. citymarkcapital.com.

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Direct Recruiters, Inc. Direct Recruiters is pleased to announce that Matthew Cohen has been named Partner. As Practice Leader of Energy & Sustainability and HVAC/R, Matthew has successfully built teams for the most innovative organizations in the industries he serves. Matthew Cohen began at Direct Recruiters over 8 years ago and has successfully expanded the Energy & Sustainability and HVAC/R practices. He brings enthusiasm and leadership to his practice and thrives when assisting both clients and candidates.

Porter Wright welcomed Nathaniel Sinn, Esq. as a partner in its Cleveland office. Nathaniel is a commercial litigator practicing in the areas of bankruptcy and reorganization, banking and finance, and real estate. Nathaniel’s experience includes representing financial institutions, court-appointed receivers and vendors in matters related to distressed credit and assets. He provides counsel regarding bankruptcy, workouts and creditors’ rights and has successfully litigated cases in many jurisdictions.

Porter Wright Morris & Arthur LLP Porter Wright is proud to welcome Heather Heberlein, Esq. as an associate in its Cleveland office. Heather concentrates her practice on creditors’ rights and bankruptcy. Working with creditors, debtors and financial institutions, Heather has built a successful practice by working alongside clients to resolve even the most complex legal matters. She counsels clients on commercial transactions centered on collections, receiverships, foreclosures, reorganizations, restructurings and workouts. 18 | CRAIN’S CLEVELAND BUSINESS | OCTOBER 12, 2020

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Why not?

CRAINSCLEVELAND.COM I JUNE 29, 2020 I

Dr. Sandra Hong

CRAINSCLEVELAND.COM I JUNE 29, 2020 I “We get to do detective work and figure out how and why things are going on,” Hong exRegional Medical plained. “We’re absolutely makDirector, Cleveland Clinic ing people feel better. It was a laAllergy and immunology com- bor of love to create the program.” Helming the Clinic’s allergy prise what Sandra Hong calls a “happy field” of medicine, con- center marks only one of her leadsidering practitioners can make ership positions. Hong, who to do detective work 2005,get followan immediate impact on a pa- joined the Clinic in “We figureis out ing a fellowship inand Boston, di- how and why CRAINSCLEVELAND.COM I JUNE 29, 2020 I tient’s quality of life. things are going on,” Hong exMedical rector for the hospital system’s “There are studiesRegional that make alplained. “We’re absolutely makDirector, Cleveland Clinic southern region, orchestrating lergies equal to open heart suring people feel better. It was a lagery, where people are prevented operations in Brunswick, Medina, Allergy and immunology com- bor of love to create the program.” Township from full functionality in school Wadsworth, Olmsted Helming the Clinic’s allergy prise what Sandra Hong calls a and Strongsville. and work,” said Hong, who among “happy field” of medicine, con- center marks only one of her leadHong created and positions. impleother leadership positions is diership Hong, who sidering practitioners can also make mented new scribe rector of ClevelandanClinic’s new impact joinedprograms the Clinic in 2005, followimmediate ontwo a pain 2020: a postbaccalaureate de- in Boston, is diFood Allergy Centertient’s of Excellence ing a fellowship quality of life. “We get to do detective work signed in alcollaboration withhospital system’s (FACE). “We absolutely are are makrector for the “There studies that make and figure out how and why Stanford and a region, proing patients feel better. Theequal beautyto open orchestrating lergies heartUniversity sur- southern things are going on,” Hong exRegional in which Medical third-year stuof it is, we’re takinggery, care where of generoperations in Brunswick,plained. Medina, “We’re absolutely makpeoplegram are prevented dentsDirector, the Cleveland Ohio University ations of families.” from full functionality Clinic Wadsworth, Olmsted Township infrom school ing people feel better. It was a laHeritage College of Medicine reHong helped develop northern Strongsville. and work,” said Hong, who among bor of love to create the program.” and and immunology ceiveAllergy hands-on acom- and Ohio’s first food-allergy center, positions Hongunder also created impleother leadership is di- training Helming the Clinic’s allergy prise what Sandra Hong calls a physician. which launched inrector February. To- tenured of Cleveland Clinic’s new mented two new scribe programs marks only one of her lead“happy field” of medicine, Cleveland Clinic staffcon- centerdeday, she leads a multidisciplinary in chief 2020: of a postbaccalaureate Food Allergy Center of Excellence practitioners can make ership positions. Hong, who Herbsidering Wiedemann, who recruited team of allergists, (FACE). pediatric“We psyin collaboration with absolutely are mak- signed joined the Clinic in 2005, followanto immediate impact on Hong the hospital’s allergy de-a pa- and chologists and dieticians working Stanford University a proing patients feel better. The beauty ing a stufellowship in Boston, is diquality of life. gram in which has watched while she third-year of it is, we’re takingpartment, caretient’s of generto diagnose allergies and disease rector hospital system’s studies thatcommake aldents and from the Ohio University of families.” grew as“There both aare clinician picked up byfor Thethe Daily Show with caused by reactionsations to food. The Hong file southern lergies equal Heritage to open College heart surofTrevor Medicine re- region, orchestrating Hong helped northern municator. Noah. About 32 million people in the develop operations Medina, gery, where people are prevented ` Hobbies: ceive hands-on training under Hong a in Brunswick, Ohio’s includfirst food-allergy center, “Sandy has an enthusiastic Though loves talking U.S. have food allergies, Olmsted one Township from full functionality in school tenured physician. launched February. To-personality, engaging and is shop,Wadsworth, she’s never watched of Swimming ing 8% of children.which Hong’s own inand and work,” said Hong, who among Cleveland Clinic chief of Strongsville. staff shepeanut leads a multidisciplinary able and to communicate very well her own interviews, leaving that nephews live with day, severe ` Currently reading: Hong also created impleother leadership positions Herb Wiedemann, whotorecruited team of allergists, psylay audiences, which in heris diup her proud mother,and who’s allergies, which cause hives, itch- topediatric “Born a Crime: Stories from a South African mented new scribeofprograms of Cleveland new Hong toClinic’s the hospital’s allergy de-two chologists and dieticians working case rector includes patients,” Wiedefond of taking screenshots her ing and shortness of breath. PeaChildhood” by Trevor Noah in 2020: postbaccalaureate Food Allergy Center of Excellence has watched while she to diagnose allergies andsaid. disease daughter’s TVaappearances, occa- demann “She’spartment, a superb allernut allergy is the most common signed collaboration (FACE). “We grew absolutely are makas both a clinician and com-in up by four The with Daily Show with travel causedanaphyby reactions to food. ` Her bucket-list gist, but because of her various sionally with onepicked of Hong’s cause of food-induced Thedestination: Hong file Stanford University and a proing patients feel better. beauty municator. Trevor Noah. About 32 million people in theevolved talents, she’s in a The numchildren smooching their mom’s An overwater bungalow in French Polynesia laxis, a potentially life-threatengram in which third-year stuofareas.” itincludis, we’re taking care has of gener“Sandy an image enthusiastic U.S. have food allergies, ber of on screen. Though Hong loves talking ` Hobbies: ing reaction. ` Best piece she’s received: Swimming dents from the Ohio University ations of families.” and engaging personality, andKorean-born is shop, she’s never watched one of ofadvice ing 8%Strongsof children. AHong’s own sought-after speaker, Hong Hong’s mother Based in Hong’s native “Be kind, workthat hard and stay humble.” Heritage College of Medicine rehelped develop northern able to communicate her own interviews, leaving nephews live withconducted severeHong peanut 19 media presentaand very fatherwell — a former cytologist ville, FACE also treats patients ` Currently reading: ceive hands-on training undermother, a Ohio’s first food-allergy center, to layallergy-reaudiences, which in her upowner, to herrespecproud who’s allergies, which itchtionshives, in 2019, tackling and grocery-store with allergic diseases such as cause a Crime: Stories from a South African ` Her dream job as “Born a child: caseinincludes patients,”tenured Wiede-physician. fond of taking screenshots of her which launched February. ing and shortness of breath. Trevor Noah for, among other out- Totively — instilled in their child the Lifeguard. “My mother’sChildhood” asthma and eczema, conditions lated topicsPeadream jobby was for me TV appearances, occasaid. “She’s a superbCleveland aller- daughter’s nut allergy is the mostday, common Clinic chief of staff she leadsmann a multidisciplinary often exacerbated by anxiety, iso- lets, NBC Nightly News, The New value of hard work and kindness, to be a doctor. Mothers really do know best.” gist, but because of herHerb various sionallywho withrecruited one of Hong’s four ` Her bucket-list travel destination: anaphycause of food-inducedteam anaphy Wiedemann, of allergists, pediatric psylation and bullying. Researching York Times and USA Today. An virtues that Hong utilizes today. talents, she’sworking evolved inHong a numlife-threatenlaxis, a potentially life-threaten to the children hospital’ssmooching allergy de-their mom’s An overwater bungalow in French Polynesia chologists and dieticians Thera‘I’ve always tried to treat people and eventually improving every interview on Aimmune ber of areas.” image on screen. ing reaction. watched while she to diagnose allergies and disease partment, has Best piece — a biopharmaceutical in the way I want to be treated, or doingmother facet of an individual’sBased life isinwhat a job that `speaks to of meadvice andshe’s received: A sought-after speaker, Hong’speutics Strongsnative Strongs grewHong as both a Hong’s clinicianKorean-born and com- picked up by Show with caused by reactions to food. “BeThe kind, Daily workIt’s hard and stay humble.”The Hong file developing treatments how I want my family to be treat- allows me to help spurred Hong’s initial others. what conducted 19 inmedia ville,interest FACE in also company treats patients municator. and father — a former cytologist Trevor Noah. About 32 million people the presentafor food allergies — was even ed,” she said. “I’m blessed to be a the field, she said. with allergic diseases I love respecdoing.” — `Douglas J. job Guth tions in 2019,includtackling allergy-reand an grocery-store owner, such as food ` Hobbies: Her dream as atalking child: “Sandy has enthusiastic Though Hong loves U.S. have allergies, lated topics for, among out- tively — instilledand in their asthma and eczema, conditions “My mother’sone dreamof job wasSwimming for me and engaging personality, is child shop,the she’s Lifeguard. never watched ing 8% of children. Hong’s own other Reprinted with permission from Crain’s Cleveland Business. © 2020 Crain Inc. All rights reserved. NBC Nightly News, The New value of hard work and kindness, isooften exacerbated by anxiety, iso to be a doctor. Mothers reallythat do know best.” able to Communications communicate very well her own interviews, leaving nephews livelets, with severe peanut ` Currently reading: Further duplication without permission prohibited. #CC320 York Times and USA Today. An virtues that Hong today. lation and bullying. Researching to islay audiences, which in utilizes her up to her proud mother, who’s allergies, which cause hives, itch“Born a Crime: Stories from a South African interview on Aimmune Theraalways tried to treatfond people and eventually improving every includes ‘I’ve patients,” Wiedeof taking screenshots of her ing and shortness of breath. Pea- case Childhood” by Trevor Noah — common a biopharmaceutical in the way I wantallerto be treated, or TV facet of an individual’s life what ispeutics doing a job that speaks daughter’s appearances, occa- to me and mann said. “She’s a superb nutisallergy the most company developing how I want myvarious family to be treat- with spurred Hong’s initial cause interestofinfood-induced allows help others. what gist, but because of her ` Her bucket-list travel destination: sionally one me of to Hong’s four It’s anaphy- treatments for food allergies — was evenshe’sed,” she said. blessedchildren to be a smooching the field, she said. I love doing.” — Douglas Guth talents, evolved in “I’m a numoverwater bungalow in French Polynesia their mom’s J. An laxis, a potentially life-threatenber of areas.” image on screen. ing reaction. ` Best piece of advice she’s received: Reprinted with permission from Crain’s Cleveland Business. © 2020 Crain Communications Inc. All rights reserved. A sought-after speaker, Hong Hong’s Korean-born mother Based in Hong’s native Strongs“Be kind, work hard and stay humble.” Furtherpatients duplicationconducted without permission is prohibited. #CC320 19 media presentaand father — a former cytologist ville, FACE also treats

Dr. Sandra Hong

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BUSINESS OPPORTUNITY

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Dr. Sandra Hong

CRAINSCLEVELAND.COM I AUGUST 24, 2020 I

FOCUS | NOTABLE LGBTQ EXECUTIVES Crain’s Cleveland Business is celebrating the professionals who have an impact on Northeast Ohio in their business and in advocacy work in the LGBTQ community — as members, allies and supporters. Our profiles of 21 professionals, written based on nomination forms submitted to Crain’s, honor their business, civic and philanthropic achievements while highlighting their work on LGBTQ equality and inclusion.

Gregg Levine Title: Senior Career Consultant, Ratliff & Taylor Last degree earned: MBA, Cleveland State University Guiding people in their careers and protecting human rights have been the focus of Gregg Levine’s life. Currently senior consultant at Ratliff & Taylor, a talent management firm in Independence, Levine provides guidance to executives and other professionals with career transitions. Outside the job, he is active in the Human Rights Campaign and chairs the community relations committee of the Cleveland Jewish Federation(CJF). “Gregg is a leader in every sense of the word,” said Debbie Klein, the Jewish federation’s managing director for community relations, in the nomination. “He listens intently, he feels the pain of those who are disenfranchised and responds with action, and he brings people along. Gregg is an incredible asset to the organizations fortunate enough to call him a lay leader and volunteer.” Levine spent 33 years at BP America, starting, according to the nomination, as a “gas jockey” when it was the Standard Oil Co. (Ohio) and rising through a succession of marketing and human resources jobs. After retiring from BP, he earned an executive coaching certificate from Case Western Reserve University and began a second career at Ratliff and Taylor. While at BP, he worked in London for much of 2012, promoting the company’s sponsorship of the 2012 Olympic Games there. That led to a role on the executive committee of the Gay Games that were held in Cleveland in 2014. According to nominator Michael Jacobson, a longtime marketing executive who is now president of MHJ Consulting Group, Levine’s greatest contribution to other members of the LGBTQ community is his active, open lifestyle. “By being open and speaking out about his struggles and lifestyle changes, Gregg continues to lead by example,” Jacobson wrote. “His story of his struggles lets others know they are not alone or the only ones seeking answers.” In that role, Levine leads discussions at several local Jewish synagogues to help young people and their families who are working to come out. — Jay Miller

with allergic diseases such as asthma and eczema, conditions often exacerbated by anxiety, isolation and bullying. Researching and eventually improving every facet of an individual’s life is what spurred Hong’s initial interest in the field, she said.

tions in 2019, tackling allergy-related topics for, among other outlets, NBC Nightly News, The New York Times and USA Today. An interview on Aimmune Therapeutics — a biopharmaceutical company developing treatments for food allergies — was even

and grocery-store owner, respectively — instilled in their child the value of hard work and kindness, virtues that Hong utilizes today. ‘I’ve always tried to treat people in the way I want to be treated, or how I want my family to be treated,” she said. “I’m blessed to be a

` Her dream job as a child:

Lifeguard. “My mother’s dream job was for me to be a doctor. Mothers really do know best.”

doing a job that speaks to me and allows me to help others. It’s what I love doing.” — Douglas J. Guth

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Crain’s Cleveland Classifieds

CRAIN’S CLEVELAND LOOK BACK | LTV STEEL

LTV’s bankruptcies tested Cleveland’s mettle ``IN THEIR OWN WORDS “ArcelorMittal is a world-class organization that we have long admired as our customer and our partner, and we know for a fact that they have taken good care of their U.S. assets.” ——Lourenco Goncalves, Cleveland-Cliffs chairman and CEO

crainscleveland.com

Publisher Mike Schoenbrun (216) 771-5174 or mike.schoenbrun@crain.com Executive editor Elizabeth McIntyre (216) 771-5358 or emcintyre@crain.com Group publisher Mary Kramer (313) 446-0399 or mkramer@crain.com Managing editor Scott Suttell (216) 771-5227 or ssuttell@crain.com Assistant managing editor Sue Walton (330) 802-4615 or swalton@crain.com Creative director David Kordalski (216) 771-5169 or dkordalski@crain.com Web editor Damon Sims (216) 771-5279 or dasims@crain.com Assistant editor Kevin Kleps (216) 771-5256 or kkleps@crain.com Senior data editor Chuck Soder (216) 771-5374 or csoder@crain.com Editorial researcher William Lucey (216) 771-5243 or wlucey@crain.com Cartoonist Rich Williams

It was — and its successor still is — the last of Cleveland’s big steel mills along the Cuyahoga River in The Flats. Today, for now at least, it’s known as ArcelorMittal’s Cleveland Works. Soon, it will become part of Cleveland-Cliffs via an acquisition announced in September. But most Clevelanders past a certain age probably remember it as LTV Steel. Occupying 870 acres on the river, where it has two blast furnaces and more than 7 million square feet under roof, the more than 100-year-old plant is hardly out of date. It produces a ton of steel per worker hour, ArcelorMittal reports, which is about twice as much output per man hour as the industry average for the U.S. But there was a time when folks wondered if it was going to make it. — Dan Shingler

“He taught me so much. … Purchase the assets through bankruptcy, which would make them free and clear. There is no pension obligation. The government takes over.”

REPORTERS

Stan Bullard, senior reporter, Real estate/ construction. (216) 771-5228 or sbullard@crain.com Lydia Coutré, Health care/nonprofits. (216) 771-5479 or lcoutre@crain.com Michelle Jarboe, Enterprise reporter. (216) 771-5437 or michelle.jarboe@crain.com Rachel Abbey McCafferty, Manufacturing/energy/ education. (216) 771-5379 or rmccafferty@crain.com Jay Miller, Government. (216) 771-5362 or jmiller@crain.com Jeremy Nobile, Finance/legal/beer/cannabis. (216) 771-5255 or jnobile@crain.com Kim Palmer, Government. (216) 771-5384 or kpalmer@crain.com Dan Shingler, Energy/steel/auto/Akron. (216) 771-5290 or dshingler@crain.com

——Rodney Mott, former ISG CEO, speaking to Bloomberg about Wilbur Ross

“When you see that flame, that means we’re making steel in Cleveland.” ——Mark Granakis, former United Steelworkers president at the plant, via Cleveland.com

“We basically said, ‘We are going to rise again here someday, and the sun is going to shine again on Cleveland.’ ” —— Eric Hauge, ArcelorMittal Cleveland’s general manager, via Cleveland.com

``THE HISTORY LTV faced two Chapter 11 bankruptcies following the dark days the U.S. steel industry faced in the 1980s and afterward — once in 1986, and again in 2000. Before that, its local plant was part of Republic Steel, which was purchased by LTV Corp. in 1984. The deal made LTV the second-largest steel maker in the U.S., but it soon struggled in a global steel industry saddled by oversupply and falling prices. Cost-cutting measures, including concessions by the company’s union employees, were not enough. Things came to a head with the company’s 1986 bankruptcy. It was, at the time, the largest Chapter 11 filing in U.S. history. Many local attorneys,

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The mill’s blast furnaces and the machinery that feeds them are along the Cuyahoga River. | VIKTOR MACHA/ARCELORMITTAL

as well as journalists and others, nearly made careers from the case. When it was over, LTV had moved its headquarters from Dallas to Cleveland, streamlined its steelmaking operations, and returned to feasibility and its role in the industry. It didn’t last, though, and in 2000 LTV again filed for bankruptcy as it faced new competition from foreign steelmakers and unsustainable debt levels. LTV shut down at the end of 2001 and sold its steel mills in Cleveland, as well as Chicago, to turnaround investor Wilbur Ross’ International Steel Group. ISG, based in Richfield, reopened the Cleveland Works in 2002. Ross then sold ISG to Mittal in 2005, leading to its present ownership by ArcelorMittal.

``WHY IT MATTERS TODAY The successful reorganizations of LTV turned out to be a very good thing for Cleveland. Not only has ArcelorMittal kept Cleveland at the forefront of the steel industry by owning and continuing to invest in and improve the plant, it also has remained a significant local employer. According to its website, ArcelorMittal employs 1,863 people at the plant, which is significantly more than the 1,460 it reported employing at the mill in 2005. That doesn’t include countless other jobs, from accountants and attorneys to contractors who work in and around the plant, or those who make a living selling to the plant or using its products.

The mill’s continued existence supports shipping on the Great Lakes via its purchases of iron ore and other materials. It’s also a major source of shipping traffic on the Cuyahoga River (which it now shares with kayakers and paddle boarders) and supplies steel to the U.S auto industry and other manufacturers in the region with its coiled steel product. Cleveland is still a steel town — though not as it once was, admittedly — largely because of the continued existence of the Cleveland Works. Now, the mill is entering a new era, and time will tell if it’s able to continue its recent success. Cliffs is paying $1.4 billion to buy essentially all of ArcelorMittal’s U.S. operations in a transaction expected to close by the end of this year.

THE WEEK MONEY CRUNCH: The lender behind a $36 million mortgage on the Westin Cleveland Downtown is seeking to foreclose on the hotel. The Cleveland International Fund filed a foreclosure lawsuit, seeking to take control of one of downtown Cleveland’s largest hotels. The Cleveland Heights-based lender said that the hotel’s owner, an affiliate of Optima Ventures of Miami, defaulted last year on its mortgage and hasn’t been able to meet the terms of a forbearance agreement meant to stave off legal action. Between principal, interest and fees, Optima 777 LLC now owes roughly $37 million.

A valet walks outside to greet a customer at the Westin Cleveland Downtown hotel on Oct. 5. | MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

ON THE MOVE?: CrossCountry Mortgage, a Brecksville-based lender, is firming up its plans for a corporate headquarters project just east of

downtown Cleveland. City Council is considering an incentive package for the project, which could bring more than 500 jobs to the Superior

Leonhardt Jr., the company’s CEO, said construction could start next year and wrap up in spring 2022, though the project hangs on securing competitive state tax credits for historic preservation and tying down other state and local aid.

Arts District and anchor a mixeduse redevelopment of vacant buildings and parking lots at East 22nd Street and Superior Avenue. Ron

LIFE GOALS: Progressive Corp. could soon expand its horizons into life insurance. “We actually are considering that,” CEO Tricia Griffith said on Bloomberg Television. “We have a life insurance company filed in Ohio. More to come on that.” A life business would be a new frontier for the third-largest U.S. car insurer. Progressive already has a “great relationship” with a partner in which it receives a commission for life insurance sales, Griffith said.

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