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Poor air service hobbles HQ bid

DEVELOPMENT

A long trek to downtown

Connection woes, lack of international flights jeopardize retaining Sherwin-Williams By Stan Bullard sbullard@crain.com @CrainRltyWriter

No matter how local and state officials and site-selection executives may paint over it with fiscal incentives, one of the biggest challenges Northeast Ohio faces in retaining the headquarters of The Sherwin-Williams Co. is the region’s air service. Frank Spano, a 30-year veteran of site selection at The Austin Co., a Mayfield Heights-based global design-build company, said that while multiple factors, from construction costs to recruiting, go into such a decision, assessment of the region’s air facilities will be part of the mix. “Given the acquisitions they have made and their global dominance in their industry, they have to really look at air transportation,” said Spano, managing director of Austin’s site-selection unit, Austin Consulting, in an Oct. 10 phone interview. “They have to look at it as an important consideration, not only to hire people but to get people to their headquarters within a reasonable period of time. Any large company in Cleveland with regional and administrative locations knows this. And I don’t see Hopkins improving service to the corporate community.” SEE AIR SERVICE, PAGE 17

Developer Bo Knez is finishing the last phase of the Avenue Townhomes in downtown Cleveland. (Tim Harrison for Crain’s)

A familiar name in the suburbs, Knez Homes is now building in Cleveland By Stan Bullard sbullard@crain.com @CrainRltyWriter

In the early 2000s, Bob Dyer, then an executive with the former land division of Cleveland-based Forest

Entire contents © 2019 by Crain Communications Inc.

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City Realty Trust, now part of Toronto-based Brookfield Asset Management, called on Bo Knez, the founder and owner of Knez Homes of Concord Township. “I thought at the time that he was a successful suburban builder, someone I could do business with,” Dyer, now director of acquisitions at apartment developer-owner Redwood Living of Independence and a land development consultant. “I figured he would continue to grow. Did I think he would become a home builder in the city of Cleveland and downtown? No. They seem to be totally different skill sets. The issues you run into in Cleveland are totally different from the suburbs. I can’t imagine doing both. It says a lot about him as a person and his com-

Bo Knez at a glance Age: 54 Hobbies: Riding Japanese sports bikes First construction job: Laborer Secret sauce: Building houses to Energy Star ratings, other green features Why Knez goes green: “I don’t like waste.” Best advice he ever got: Reducing exposure to land inventory before the housing collapse after hearing housing guru Ivy Zelman speak. Mentor: The late Michael J. DiSanto, a Solon-based residential land developer

pany that they are doing both.” That isn’t the only surprising thing about the reach of Knez Homes. Meet a home builder named Bo, even in Northeast Ohio and with a last name such as Knez, and you might expect him to hail from the South or Southwest — Texas, perhaps. But in the case of Knez Homes of Concord Township, Bo is short for Bojan, and he was born in Yugoslavia. Moreover, this Knez, whose company is building the last phase of the Avenue Townhomes in downtown Cleveland and planning Azure, a huge townhouse-apartment complex overlooking Lake Erie near East 55th Street, hails from the St. ClairSuperior neighborhood northeast of Cleveland State University. SEE KNEZ, PAGE 20

10/11/2019 2:27:57 PM


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Team NEO: Workforce needs more college grads Education pipeline is a start to fixing workforce supply-and-demand gap By Kim Palmer kpalmer@crain.com @kimfouroffive

A lot has been written about the imbalance in Northeast Ohio’s workforce. The region’s declining population and a workforce that is 5% older than the national average contribute to a substantial skilled labor shortage. “We have some fundamental demographic population issues that is going to hinder our ability to grow in the short term,” said Jacob Duritsky, vice president of strategy and research at Team NEO. Northeast Ohio also produces 20% fewer college graduates than the national average, with only 34% of the population having received any type of postsecondary degree. The numbers do not bode well in Team NEO’s third annual “2019 Aligning Opportunities” report, which states that by 2025, 65% of Northeast Ohio workers will require a two- or four-year degree. This year’s results, a deep dive into the supply-and-demand imbalance in the region’s workforce, confirm that Ohio’s manufacturing, IT and health care industries need more than 60,000 workers to fill labor deficits. The fact that Northeast Ohio has approximately 280,000 students enrolled yearly in postsecondary educational programs ought to mean the problem can be easily solved, but aligning that potential workforce with corresponding in-demand jobs has proved a major challenge. “Almost everybody, to make a living wage, needs some kind of postsecondary training,” explained Julie Szeltner, senior director of adult programs and services for College Now, Greater Cleveland. College Now assists adults and students in finding and completing four-year or two-year schooling or the skills training for career advancement. The challenge is twofold: to encourage another 10% of the population to receive some level of postsecondary education and to nudge the portion of the population who have some college to complete their education. According to Census data, 4 million Northeast Ohioans between the ages of 25-64 have some college education but no degree — about 200,000 of them live in Cuyahoga County. Szeltner’s group has recently contracted with colleges to work with about 1,000 students a year who dropped out of school and help them to re-enter an education program. “This is a national movement to do this work because enrollments are down dramatically and the job market is extremely tight,” Szeltner said. “The schools see that you cannot just throw away students.” Encouraging people who attend a four-year college or university to remain in the region after graduation is another way to grow the region’s workforce. Currently, Northeast Ohio’s retention rate is 47%, or 14,600 graduates a year. “Talent attraction is really hard to do and it is really expensive,” noted Duritsky. “Not to say that we should not do it. We should push for talent

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retention. What keeps people grounded here? Oftentimes, that is a job or a career path.” If Northeast Ohio could expand its retention rate to 57% annually, that would mean 3,130 more college graduates, including 162 more IT grads, 445 more health care undergraduates and 263 more architecture and engineering undergraduates. The Aligning Opportunity report puts a number on how many more engineering degrees the region needs instead of just worrying about that 2025 percentage. “It is

“Almost everybody, to make a living wage, needs some kind of postsecondary training.” — Julie Szeltner, senior director of adult programs and services for College Now, Greater Cleveland

Retrorocket via iStock

helpful in showing urgency,” Szeltner said. In April, a workforce education partnership began meeting with a yearlong focus on bringing business and education together to combat the region’s jobs alignment gap. The goal is to develop a mechanism where business and higher education can talk and create a pipeline of talent. “Are companies going to see these numbers and say they do not want to come to Cleveland? Maybe,” Duritsky said. “But if we can have a conversation about it, in five to 10 years this becomes a longterm competitive advantage because we are figuring it out ahead of others.”

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Action Management launches a sports division By Kevin Kleps kkleps@crain.com @KevinKleps

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Adding a sports division was a natural move for Action Management Services, and it’s not just because the Independence company’s owner is a 6-foot-8 former college basketball player. Action Management, an executive search firm that is celebrating its 40th anniversary this year, already was helping clients fill C-suite openings in such industries as accounting and finance, health care, real estate, and sales and marketing. Sports, because of its wide scope and its monstrous status as a business, was next on Dale Chorba’s checklist. “Everybody knows somebody through the sports world,” said Chorba, who played hoops at Heidelberg University in the 1980s. “We said, ‘Let’s take this to another level.’ We’re having a blast.” Action launched its sports division in mid-August. It’s being led by Chorba, the company’s president, who assumed ownership of the business from his parents in 2009. Six weeks after its foray into sports, Action Management was working on 17 to 20 jobs that ranged from the XFL, a Vince McMahon-backed football league that kicks off in February, to figure skating. Action Management is or will also be involved in executive searches for the NFL, NBA, MLB, NHL, NASCAR, IndyCar, MMA, golf and NCAA Division I sports, Chorba said. The roles for which it’s recruiting will be midmanagement to senior

“The jobs we do aren’t on Indeed, Monster, CareerBoard, stuff like that. We are hired and retained to find the major horses who are passive and not looking. Probably 80% to 85% of our candidates are happily employed, but it’s an opportunity that they can’t pass up.” — Dale Chorba, Action Management president

level — jobs that Chorba said would likely pay between $80,000 and $800,000 a year. That’s a step below the Korn Ferrys of the world, and a notch above the entry-level positions

that some larger-scale sports recruiting companies help to fill. “The jobs we do aren’t on Indeed, Monster, CareerBoard, stuff like that,” Chorba said. “We are hired and retained to find the major horses who are passive and not looking. Probably 80% to 85% of our candidates are happily employed, but it’s an opportunity that they can’t pass up.” Chorba joined the company in 1989, 10 years after it was started by his father, Dale Sr. Action Management has 14 employees and is looking to add one to three more, depending on how quickly the sports division grows, Chorba said. “We are looking at substantial growth to add here,” he said. The company president said an unexpected endorsement by Forbes, which ranked Action Management 47th in professional recruiting and 228th for executive searches in 2018, added to the company’s workload. This year, Forbes ranked Action Management 40th in professional recruiting and 58th for executive searches, and tabbed the company as the top executive search firm in Ohio. “Are we the best? Who the hell knows?” Chorba said. But he’s not going to shy away from the recognition, even as many of the searches in which Action Management is involved are kept private. “As a headhunter, we recruit them,” Chorba said. “I like to say I’m a messenger of opportunity.” For now, Action Management’s contracts with sports organizations are on a “deal-to-deal” basis, but many of its clients in other areas of the business have been working with the company for decades, Chorba said.

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Spotlight on a hidden workforce To face the future, companies need to learn how to recruit from NE Ohio’s growing Latinx community By Kim Palmer

“Not considering Latinx workers is going to be a detriment. We are the fastest growing group and in less than five years will be 20% of the workforce.”

kpalmer@crain.com @kimfouroffive

The Latinx community is the fastest-growing minority group in the United States. According to U.S. Department of Labor data, the community makes up about 17% of the nation’s labor market, and by 2025 it will account for one out every two new employees entering the workforce. “Not considering Latinx workers is going to be a detriment. We are the fastest-growing group and in less than five years will be 20% of the workforce,” said Marcia Moreno, owner of AmMore, a Cleveland company that assists organizations in developing diverse workplaces. Since leaving Chile in 2005, Moreno has spent her time assisting Cleveland businesses in attracting, recruiting and retaining Latinx (the gender-neutral term for people of Latin American heritage) employees while stressing that organizations need to recognize crucial differences between the U.S. and Latinx culture. Ohio’s unemployment rate for the Latinx community was 10.7% in 2018, twice that of white unemployment, and median income for the minority community is approximately $10,000 less a year than for white workers. “Unfortunately, we have a population that is not educated on the level that the companies need. What I hear from the companies is they cannot

— Marcia Moreno, owner of AmMore

Kamaga via iStock

find any Latinx employees and if they do, they do not have the levels of education (required),” Moreno said. Latinx underemployment in Ohio mirrors national trends, but with the tightening labor market and a median age of 26, which skews younger than the median age of 39 for nonLatinxs, this expanding supply of younger workers represents an important potential resource for businesses. The hurdle for companies, Moreno said, has as much to do with culture as it does with skills. The Latinx community is more “relationship-based,” meaning recruiting has to be more intentional than posting jobs on

LinkedIn. “That is not going to work, and it is not working to keep doing the same thing. Businesses have to develop a longer-term relationship,” Moreno said. In order to attract Latinx workers, employers need “to meet them where they are” Moreno said, by reaching out to and partnering with community groups. “It is particularly important for minority groups, to find the types of organizations where they will feel that they belong, are welcomed and that the organization is ready to take on their support and requirements,” said Diane Bilimoria, a professor and

chair of organization behavior at the Weatherhead School of Management at Case Western Reserve University. Companies traditionally have encouraged all employees to be part of what Bilimoria calls “a cultural fit,” but she noted that younger generations are pushing back against those norms. “They have grown up in an environment where differences are more common,” Bilimoria noted. “There is difference, there is more openness and they are searching for diversity and a desire to be in a more diverse setting.” Recruiting is the foundation for diversifying a workforce, but if there is

no plan to retain and advance Latinx employees, they’ll leave an organization, Moreno said. That explains, in part, why members of the Latinx community make Moreno up only 4% management positions. What an employer might see as being passive, a Latinx employee sees as being respectful, which idiverges from the traditionally more aggressive business culture, Moreno said. “Latinos are saying that they cannot be themselves at work, that they have to pretend to be someone else,” she added. “Latinos are struggling with that because the amount of effort and stress it takes for a person to pretend to be someone else is detrimental to both the company and the individual.” Also important for companies to keep in mind is that the buying power of the nation’s bilingual market is estimated to be about $1.7 trillion. To reach that market efficiently, Moreno said, companies will need to have employees that know and reflect the market without compromising their unique culture. “When we ask our employees to assimilate to cultural norms, they lose unique talents, and we may not get as much innovation and creativity,” Bilimoria said.

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Opinion Personal View

Students are our region’s largest untapped resource By Peter K. Anagnostos

Editorial

Tax talk “Our current trajectory of continually expanding local taxes is not sustainable and it will severely limit our ability to improve the economy of our region, grow its population and lift people up.” So said Scott Chaikin, executive chairman of Dix & Eaton and chair of the Greater Cleveland Partnership’s board of directors, in announcing a resolution passed Oct. 1 that the region’s chamber of commerce says “raises the bar for support of levy increases.” Essentially, GCP is sending a new message to local taxing authorities: Our support for future hikes will depend on how they fit into the broader tax landscape. The resolution follows a study GCP released in April that found the per-capita tax burden is higher in Cuyahoga County than in 10 peer metros. It also found that taxes in Cuyahoga County increased 6.5% from 2015 to 2017, compared with 3.1% in the peer communities. GCP has not been an anti-tax organization. Far from it. As Cleveland.com noted, GCP since 2012 “has endorsed tax increases for the city of Cleveland and Cleveland Metroparks, and twice each for Cleveland public schools and Cuyahoga Community College, while remaining neutral on a request by the Cleveland Public Library.” But GCP is right to step back and at least consider if these worthy asks for additional funding, over time, make the region less competitive economically. GCP said it could “oppose future levy millage increases that fail to demonstrate a unique, compelling contribution to our economy, a severe and urgent societal need, or a more creative approach to achieving their objectives,” and that strikes us as a reasonable standard. Also reasonable: applying these same standards to, say, the next stadium-related tax request. A corporate-friendly tax issue should get at least as much (or more) scrutiny as one from a library or school. GCP noted, too, that the resolution “will help guide the organization’s positioning on tax increases until an agreed-upon process for community action is in place.” We hope, then, that GCP takes an expansive view of what ails Northeast Ohio’s economy. Taxes are part of the equation, but so are issues relat-

ed to education, and infrastructure, and public transit, and public health, and poverty. Lower taxes alone won’t make us a stronger community.

State of things

A process that the Ohio Legislature approved in 2018 to address the state’s gerrymandered congressional maps, and that voters subsequently ratified through a constitutional amendment, soon will be put to the test. The U.S. Supreme Court last week dismissed a challenge to Republican-drawn congressional districts in Ohio that Democrats said were drawn unlawfully to diminish their political clout. The move wasn’t a surprise, since it followed a June ruling by the court, in cases from Michigan and North Carolina, that found partisan gerrymandering claims “present political questions beyond the reach of the federal courts.” In the short term, this means the current map, drawn by Republicans in 2012 and marked by a district now known as the “Snake on the Lake,” will remain in place for the 2020 election. The bipartisan procedure approved last year to govern the drawing of new Ohio congressional maps will kick in after the 2020 Census is completed. We wrote favorably in February 2018 of the process to address gerrymandering, which requires 60% of legislators in the Ohio House and Senate — plus half the members of the minority party — to approve the map. (And if they can’t agree, a seven-member commission of the governor, auditor, secretary of state and four lawmakers — two from each of the major political parties — would do it.) Ohio’s map, like that of many states, is pretty ridiculous. At least we can look forward to a new approach that, as Secretary of State Frank LaRose said last week, could “make Ohio a national leader in a movement that can transform government.” We hope he’s right and that legislators take seriously the need to create a fair map.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com)

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Some see Cleveland’s public schools as a liability. It’s no wonder: For as long as anyone cares to remember, the system was in a state of “inertia,” regularly ranking last among Ohio’s 608 school districts. Old perceptions die hard. As Cleveland Metropolitan School District CEO Eric S. Gordon explained in his recent State of the Schools address, Isaac Newton discovered that to move from inertia to acceleration required force. Anagnostos For the district, that force, Gordon said, started with the Cleveland Plan, initiated in 2012 to give schools greater autonomy in exchange for results, and continues today with Say Yes to Education, launched in Cleveland last year to ensure students have the opportunity and the support to earn a postsecondary credential. Those two forces, Gordon said, are now giving the district “momentum.” At The Foundry, a nonprofit rowing and sailing program oriented to middle and high school students, we are witness to the momentum and the two powerful forces driving it. Last fall, we invited CMSD’s School of One, one of the district’s autonomous schools created under the Cleveland Plan, to use our boathouse as one of its classrooms. In nontraditional classroom settings, School of One strives to produce successful graduates by offering a differentiated, individualized educational experience. A master teacher provides each student with the academic, social and emotional support needed to move from inertia to momentum. The school embraced our venue and viewed rowing as an ideal path to students’ academic, personal, social and emotional success. Teachers and coaches created daily activities known as The Foundry Experience. It includes rowing and sailing, yoga and wellness and STEM subjects on the dynamics of motion. As any rower will tell you, “crew” is unique among team sports: Rowers must work in sync for a boat to move. It requires communication and concentration as well as trust in the coxswain, the only person facing in the direction the boat is traveling. And as graceful as it may look, when the goal is winning, rowing is grueling. Lastly, it demands personal responsibility: If you are one of eight expected at practice at 5 a.m., being late or absent has consequences. The Foundry Experience is a good example of an out-ofschool time (OST) activity in the Say Yes to Education model. In its pilot year, it provided students opportunities to practice positive social behavior that improved academic achievement and reduced health disparities. But there is another component of The Foundry Experience that cannot be overlooked in the success of our pilot year: jobs. Because most students need to work, the School of One operates on a schedule to accommodate part-time employment. Knowing this, the technology company MCPc stepped forward with jobs. Full disclosure: MCPc is owned by Mike Trebilcock, one of The Foundry’s two founders — the other is his wife, a driving force behind our own momentum of giving every child, regardless of background, the opportunity to grow into a productive, healthy adult. The jobs at MCPc also solved the challenge of getting students back to the boathouse at the end of each day to join our club team, made up of rowers from public, private, charter and parochial schools throughout Northeast Ohio. Depending on their school schedule, students could work up to five days a week, four hours a day, and earn $10 per hour. They could also work during vacations. Any student who graduated from high school could work full-time or part-time work while in college. SEE RESOURCE, PAGE 9

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

10/11/2019 11:50:31 AM


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Fix industrial sewer rates or risk NEO’s manufacturing renaissance By Lance S. Traves

This summer, Team NEO reported that food and beverage manufacturing in the Northeast Ohio had grown 85% from 2007 to 2018. The regional growth rate was almost double the average U.S. rate in this category and represented more than $3 billion in annual business. These results were a shining light for the region’s manufacturing sector. They also confirm studies showing that local food manufacturing is a competitive cluster industry to be supported in Cleveland and the surrounding counties. As Team NEO’s report stated, a key factor in our region’s competitiveness is an abundant supply of fresh water from Lake Erie that makes the region an ideal location for food processing. Unfortunately, our water supply is not a competitive advantage if the cost of wastewater generated from manufacturing is so high it drives companies to start or relocate operations elsewhere. How do I know this? I recently observed firsthand the unfairness of the Northeast Ohio Regional Sewer District’s industrial wastewater rate structure and the adverse impacts these rates have on an award-winning small food manufacturing company in Cleveland. In 2017, NEORSD’s trustees approved an industrial wastewater rate schedule that increased an industrial company’s baseline volumetric rates almost 21% from 2018 through 2021. More important, the “surcharge” for the primary pollutants in food and beverage (and other) manufacturing wastewaters have increased about 95%. According to NEORSD’s “sewer use code,” industrial facility volumetric rates are supposed to reflect the cost of treating wastewater pollutants discharged to wastewater treatment plants. In reality, these rates have less to do with treatment costs and more to do with a bloated, unaccountable bureaucracy and the shifting of costs from commercial and institutional facilities. According to my recent evaluation, NEORSD’s operating costs for the expense categories that are most appropriate for inclusion in NEORSD’s definition of a “surcharge” cost have generally decreased over the past few years. For example, NEORSD’s annual operating costs for electricity, natural gas, chemicals, repairs and maintenance, solids handling and capitalized construction have decreased from 2014 to 2017. Actual annual costs for wastewater treatment chemicals and solids handling in 2017 were reduced by about 35% and 33%, respectively, when compared to 2014. In contrast, NEORSD’s overhead costs not directly associated with treatment have grown dramatically from 2014 to 2017. For example, benefit costs for NEORSD workers increased by more than 101% from 2014 to 2017. Costs for outside professional services rose 266%. These large increases in NEORSD’s general operating expenses clearly are not just related to industrial facility wastewater discharges. However, food, beverage and other industrial facilities pay far more of these expenses due to

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Beyond a career skill, MCPc also taught students how to behave in the workplace. But that lesson was first learned in the boat. The outcomes achieved in the pilot year should be welcome news for supporters of the Cleveland Plan and Say Yes to Education. Here are the highlights: Prior to The Foundry, in high schools they had attended, students were absent 469 days, or 79% of the academic year, and suspended 17 times. At The Foundry, they had perfect attendance 198 out of 202 days, and no behavioral issues. Bullying, also a cause in absenteeism, didn’t exist. Students were part of a team. The decline in absenteeism saw an increase in grades and graduation rate. Three of the four graduates last year moved on to postsecondary education and one began working full time at MCPc.

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the huge increases in industrial faciliVIKING PARKWAY ty sewer rates. Most telling is that NEORSD’s CONTACT US current sewer rate formula does not include a surcharge for commercial Charles Marshall or Terry Noonan and institutional wastewaters with 330-659-2040 much greater loading of phospho3457 Granger Road, Akron, OH 44333 rus, ammonia and nitrogen compounds. These pollutants cause VISIT OUR WEBSITE Lake Erie algal blooms and require Traves www.beaconmarshall.com great effort and cost to treat as to meet NEORSD’s National Pollutant Discharge Elimination System permit discharge limits. Despite these high costs, commercial and institutional facilities are charged much lower wastewater rates under the current NEORSD structure. Beacon Based on my recent analysis, the average cost per Marshall Ad 3-4-Lot 2R-9-2.indd 1 million cubic feet (mcf ) of wastewater discharges in 2016 and 2017 for large commercial and institutional dischargers of phosphorus, ammonia and nitrogen to NEORSD was less than 50% of the cost of my small Cleveland food manufacturer that had elevated total suspended solids and chemical oxygen demand concentrations in their wastewater. Clearly, this form of cost-shifting has to end if manufacturers are going to consider water and wastewater services a competitive advantage for Northeast Ohio. Finally, the adverse impacts of NEORSD’s unfair and, in my opinion, improper industrial facility wastewater Paid parental leave Are you growing your career with a firm Remote work supported rates are more burdensome to and threaten the financial that supports you? We’re searching for Free gym membership viability of smaller manufacturing companies, especially Student loan accounting professionals with public in the food and beverage sector. My small food manufacassistance program turer has experienced a 65% increase in NEORSD sewer accounting experience to join our team. Flexible hours Free meals during costs since the start of 2017. Over the same period, its Come see why we’re different. busy season costs for raw materials and natural gas went down about Professional career Explore our open positions and grow coaching 5.7% and 2.6%, respectively, while water costs only inTuition assistance creased by 6.8% and labor costs increased about 15%. your career: applegrowth.com/careers Free coffee every day This small company’s NEORSD sewer costs are now almost double its electricity and four times its natural gas Apple Growth Partners costs, on a total monthly and pound-of-product-pro@applegrowthpartners AppleGrowthPartners duced basis. These adverse wastewater discharge costs @apple_growth are currently impacting hundreds of manufacturers, and these companies still have to endure two more years of AWARD-WINNING ACCOUNTANTS AND BUSINESS ADVISORS APPLEGROWTH.COM sewer rate increases. As a result, some existing manufacturers may choose to move and new manufactures will be more likely to locate elsewhere. The bottom line is something has to change or NEORSD’s rates will break the economic back of the small and medium-size companies that make up the majority of water-intensive manufacturers in NEO. If this happens, NEO’s potential manufacturing resurgence will be shortlived and our future vitality will be limited once again by our own shortsightedness.

10/9/19 9:16 AM

THE GRASS IS GREENER ON OUR SIDE.

Traves is president of Labyrinth Management Group Inc. in Medina. The School of One credits rowing and related out-ofschool activities as well as the after-school jobs in this dramatic turnaround. Miss school? Miss work. Miss work? Miss a paycheck. At the same time, meaningful employment gave school new meaning. The opportunity to work — which every student embraced — provided the missing incentive to excel in the classroom, graduate and contemplate postsecondary opportunities. This year, we expand to a morning session for boys and afternoon for girls, with the same opportunities that made the pilot successful. We are also expanding our learn-to-row programming as an OST option for middle-schoolers. And we are hearing from other companies that have work opportunities for our students — students who are not a liability but the city’s largest untapped resource for jobs where candidates are in short supply but essential to our region’s future. Anagnostos is president and CEO of The Foundry in Cleveland.

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MARIJUANA’S BRANDING PROBLEM

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Federal prohibition requires creative thought to protect the marijuana industry’s brand names and logos

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By Jeremy Nobile jnobile@crain.com @JeremyNobile

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here’s no imagery among marijuana brands with the instant recognition of something like McDonald’s golden arches or the Nike swoosh — at least not yet. Surely some cannabusinesses would like to develop that kind of familiarity in the U.S. market, where at least 33 states have some kind of marijuana program. But without federal trademark protection and the ability to tightly control one’s brand, building something as recognizable as that won’t be possible. The lack of access to federal trademarks — something particularly onerous because of marijuana’s federal prohibition — leaves the brand of at least one multistate marijuana business in Ohio susceptible to copycats. For a company trying to find its place in a fast-growing industry — projected by New Frontier Data to grow to $13.1 billion in the U.S. by 2025 — it’s a fretful situation for company executives, including one who preferred to be unnamed for this report lest they tip off competitors to possible brand vulnerabilities. “As markets continue to expand and new companies enter different markets, you want to be able to distinguish yourself in the marketplace, and the ability to brand a product is one of the most important parts of being in a consumer-facing industry,” said Tom Haren, a lawyer with Frantz Ward. “The opportunity to come in and establish in a new market in marijuana is enormous. But you’ve got to have a protected brand, just like any other industry.” The aforementioned business and others like it are exploring a few creative avenues to federal trademarks that could help protect marijuana brands by proxy, or otherwise help fast-track something to federal registration in the future. Some are going

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the route of state registrations, where trademarks have inherently fewer teeth than their federal counterparts but still offer some level of protection. It’s a bit of a racket for those multistate businesses trying to build a brand. “It’s time-consuming and expensive and ultimately weaker than federal protections,” one CEO said of securing multiple state trademarks. For marijuana companies, it’s another hurdle of operating under state-approved programs, but in defiance of federal laws. It’s not unlike the challenges faced by marijuana businesses struggling to access the banking system. And just like the banking problems, the situation wouldn’t exist if not for federal prohibition. The United States Patent and Trademark Office won’t recognize as legitimate anything that has ties to drugs prohibited under the Controlled Substances Act, which still classifies marijuana as a Schedule 1 drug in the same company as heroin. Therefore, USPTO

“The opportunity to come in and establish in a new market in marijuana is enormous. But you’ve got to have a protected brand, just like any other industry.” — Tom Haren, a lawyer with Frantz Ward

won’t grant federal protection for related brand names and logos explicitly tied to plant-touching marijuana companies. This leads businesses to seek out state trademarks, which at least serve

to protect a brand in a fixed area but wouldn’t otherwise be of much use for anyone interested in interstate commerce. While it’s an option, counting on state registrations alone may be folly for growth-minded marijuana businesses, said Roger Bora, an IP lawyer with Thompson Hine. “Relying upon common-law or state-registered trademark rights only may result in loss of valuable trademark rights, including unfettered geographic expansion rights throughout the U.S.,” Bora said. “It also may result in multiple parties, operating in different geographic markets, owning common-law and/ or state trademark rights in the same

Illustration by Ilyast via iStock

or a confusingly similar mark for the same goods and services, which would prevent the parties from freely expanding their brands into another party’s geographic region.” That’s where the more creative options come in. Several marijuana-minded companies are applying for brand trademarks through nonmarijuana goods or services, said James Pingor, head of the intellectual property group at Walter | Haverfield. SEE MARIJUANA, PAGE 13

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Adviser: Nick Gingo

Brands win by losing with creative trademark filings Traditionally, brands have used the trademark registration process at the U.S. Patent and Trademark Office (USPTO) to secure an exclusive right to use a trademark throughout the country. But recent filings at the USPTO by LeBron James and The Ohio State University highlight creative ways that brands can use the trademark registration process to their advantage, even when they don’t end up with a registered trademark. An adverse ruling by the USPTO can serve as a potential shield against third-party challenges and, at a minimum, such filings can generate significant media attention.

Gingo is a partner with Renner Otto in Cleveland.

No doubt aware of this developing sense of pride in an otherwise lowly article, the school earlier this year applied to register the wordmark “The” for use as a trademark with clothing. Like LeBron’s application for Taco

Tuesday, media outlets caught wind of the filing and it became a topic of discussion for several weeks. People were surprised at the audacity of the university in attempting to monopolize such a common part of speech. When the USPTO rejected the application, many chalked it up as a loss for the school. But again, things may have played out exactly as OSU had planned. With a worldwide portfolio of more than 100 trademark registrations, Ohio State is hardly a trademark neophyte. Surely, the university understood that the application for The was doomed from the start because the

mark was being used ornamentally rather than as a brand. Even a cursory search of the USPTO database would have shown that another applicant, Marc Jacobs, had already applied to register the same mark with nearly identical goods. But perhaps Ohio State pressed ahead for the same strategic reasons as LeBron. For the price of a single trademark application, Ohio State garnered several weeks of free national press. Ultimately, the school came away with a finding by the USPTO that use of the mark on the front of a T-shirt or a hat is merely ornamental — making it more difficult for a third party to

challenge OSU’s ability to do so. Not surprisingly, the merchandise itself is still available for purchase.

Takeaways For most traditional trademarks, federal registration should still be the goal for brand owners. But even in cases where the registrability of a potential mark is more fraught, there can be advantages to going through the application process. A creative trademark attorney can help you develop a plan to leverage your application itself, and potentially snatch victory from the jaws of defeat.

LeBron and Taco Tuesday In the last year or so, LeBron James began sharing videos from his family’s taco nights on Instagram with labels including the phrase “It’s Taco Tuesday!!!” Not surprisingly, fans enjoyed the candid look into the NBA superstar’s life, and the videos became a social media hit. Then, earlier this summer, LBJ Trademarks LLC, an IP holding company owned by James, filed an application at the USPTO to register the wordmark “Taco Tuesday” in relation to advertising and social media in what appeared to be an attempt to monetize the attention being paid to the videos. Media outlets from the Food Network to ESPN reported on the filing, and many “pundits” weighed in on the propriety of the filing given how ubiquitous the phrase has become. Roughly a month after the filing, the USPTO refused registration because the proposed mark allegedly failed to function as a trademark because it is a commonplace message. This was not surprising to most trademark practitioners and, again, generated a healthy amount of media buzz as it was touted as a “loss” for Team LeBron. But this may not have been a defeat in the broader scheme of things. Both the filing itself and its ultimate disposition were the subject of significant coverage in the media. Perhaps more importantly, in addition to generating several months of free publicity for LeBron’s brand, the filing also served a tactical purpose. As a spokesperson for James claimed, the filing was originally made in hopes of generating just such a response from the USPTO. In particular, the USPTO has now taken the explicit position that the phrase Taco Tuesday cannot function as a trademark. Which means that LeBron can continue with his use of the phrase without fear of challenge by a third-party claiming trademark rights in the phrase.

THE Ohio State University

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Like LeBron James, Ohio State University also recently suffered a setback at the USPTO regarding an application to register a mark that most viewed as doomed from the outset. But when seen through the prism of Lebron’s Taco Tuesday gambit, what seems like a defeat takes on a more victorious hue. As any football fan has likely noticed, OSU alumni have taken to placing a special emphasis on “THE” when identifying their alma mater during TV broadcasts. And, love it or hate it, you’ve likely noticed an increased use of the four-word identifier by your colleagues who spent their formative years on the banks of the Olentangy.

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10/10/2019 11:59:43 AM


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New generation shakes up the legal profession Wants and desires of younger lawyers are pushing progressive changes in a tradition-bound field By Jeremy Nobile jnobile@crain.com @JeremyNobile

Law firm culture has historically been predicated on hierarchy and deference, with young rank-and-file associates expected to work hard, do what they’re told and not make waves. Many of those traditions still influence the profession today. Egos, the inherent partnership structures baked into the business model and baby-boomer leaders clinging to ways of a past generation may be among the reasons why. That doesn’t always go over well with the younger workforce, as evidenced by Jones Day’s ongoing gender discrimination and parental leave lawsuits, which accuse the firm of fostering a toxic employee culture from the top down. But as younger attorneys of the millennial group increasingly fill firm ranks — in 2019, millennials overtook boomers as the country’s largest population — they’re helping spur a cultural shift in a legal profession that at the same time is adapting to a tech-enabled and post #MeToo world where workplace flexibility, social consciousness and the opportunity to have a say in the company are increasingly valued over compensation alone. Younger lawyers are expecting more of their firms than ever before, or at least vocalizing their wants sooner and more often than prior generations. They’re asking about mobile working and flexibility, mentorship and volunteer opportunities, diversity

and inclusion efforts and a chance to participate in firm planning. “There is a significant shift toward culture and experience. And those are the aspects that firms are trying to sell to young lawyers versus what kind of clients they’re going to work with, or what the partnership track looks like,” said Laura Dutt, chief talent officer at Benesch. “Those are still questions that come up, but its weight has lessened, making room for more important questions like: Will I see my kids? Can I have a hobby? Do I have to stay at the office until 8 p.m. every night?”

Shedding stigmas It’s not that younger lawyers aren’t prepared to work hard. Desires for workplace flexibility and an ability to still advance one’s career are not mutually exclusive. A recent report by Major, Lindsey & Africa, in coordination with Above the Law, found that 40% of millennial lawyers surveyed still view partnership as their long-term goal. Yet, 75% said they would trade a portion of compensation for more time off, a more flexible schedule or a cut in billable hours. That all comes as 66% described partnership as less desirable compared to a generation ago. “Our new grads and law students are definitely looking to their potential future employers to provide growth opportunities and opportunities for work-life balance and professional development as well,” said Alisa Benedict O’Brien, assistant dean for career services and strategic initiatives at the University of Akron School of Law.

O’Brien once discouraged job seekers from asking too much about work-life balance during interviews because it might be received as a sign of unwillingness Cascarilla to work hard. “That’s changed the last few years,” she noted. “Firms are understanding what these people want. And these conversations are no longer taboo.” As competition peaks for top young attorneys and even lateral hires, firms are listening closely and adapting accordingly. In terms of flexibility, Benesch recently rolled out a tweaked, non-gender-specific parental leave policy, shifting it from 13 weeks of paid leave plus an optional 13 weeks unpaid to 20 weeks paid leave and six unpaid. The firm actively encourages lawyers to use that time, Dutt said. That’s not always how it worked. “There was once a stigma, especially with men, on whether or not they should take advantage of that benefit,” she said.

A new norm Walter | Haverfield managing partner Ralph Cascarilla recollected how, when he started practicing in the late 1970s, lawyers were expected to be in the office at least 12 hours a day. Now, spending a significant amount of time outside the office and with clients is “pretty much standard.” Some of that is due to clients, who expect white-glove service. Also, ad-

vances in technology have enabled mobile and remote work. A younger generation brought up around technology naturally takes to that. Dutt observed that being physically present in the office isn’t as important today as just doing good work and meeting deadlines. The legal workplace has also become more laid back. Like other firms, Walter | Haverfield’s dress code is now business casual unless you’re appearing in court. Suits are no longer a daily requirement. Cascarilla sees the legal profession’s culture of complete deference changing, too. A few years ago, Cascarilla formed a special committee for associates that features a couple of dozen people and its own five-figure budget for planning functions. Giving a group of associates autonomy and their own coffer to manage would’ve been unheard of a generation ago. “Law firms of the ’70s and ’80s were very hierarchical, very topdown organizations and very structured,” Cascarilla said. “I don’t think a law firm manager back then would’ve said, ‘Hey, what would you all like to do? You guys figure it out.’ ” Younger lawyers also generally want more interaction with clients and partners compared to the past and aren’t as OK with duties simply being relegated to them. They want to feel involved. “It’s a more democratic flow of information, with younger lawyers typically part of a team for a particular client matter,” Cascarilla said. “Fifteen or 20 years ago, associates rarely interacted with clients. That was all done through the partners.”

Growth by Design

As Benesch rolled out a new strategic plan this year, it engaged associates for feedback. A generation ago, firms weren’t very likely to care what associates thought about the firm as a business. But it’s something younger people increasingly ask about: having a say in the company. “(The millennials) are going into this generally thinking, ‘Hey, this is a mutual agreement, a partnership,’ ” Dutt said. “It’s no longer, ‘Thanks for the job. Now tell me what I need to do for you.’ ” All these changes come alongside other developments playing out in law in recent years. Women’s initiatives and diversity committees are becoming more common in a field that’s more homogenous than most professions. Mentorship programs are a common standard as young lawyers hunger for career growth and ask their employers for support. From cable TV to napkins, millennials tend to shoulder the blame for the demise of so many of the past generation’s traditions, and the cultural norms and products that came with them. But in the legal field, the wants and desires of a younger class of lawyers are pushing progressive changes in a profession known for clinging to its past. That evolution is only likely to continue as millennials work their way into the legal profession. “Millennials are moving through the workforce. The firms who recognize that reality and plan for it are those who will thrive and prosper,” Cascarilla said. “Those who don’t recognize it — well, you don’t have to look that far to see what happens with them.”

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He said one approach being implemented or at least considered is to seek out a trademark for something related to hemp or CBD, which was legalized federally with the 2018 Farm Bill, distinguishing it from marijuana’s federal prohibition. Of course, the company has to actually be involved in something hemp-related, which may mean folding a new business into a company originally focused on marijuana. Even though a trademark tied to hemp or CBD wouldn’t apply to the marijuana products themselves, there could be reasonable ground for what’s called the likelihood of confusion — a standard in trademark law — if another company tried to adopt the same name or imagery for its marijuana brand. “So if someone is protecting CBD, and someone starts selling cannabis under the same name, you might have a strong argument there is a likelihood of confusion,” Pingor explained. “The best scenario is you get someone using the mark on both marijuana and CBD.” But it’s not just hemp. The same strategy can apply to companies making other nonmarijuana goods, or even someone providing educational services. Apothecanna, for example, is a Denver-based company that makes a variety of products, including marijuana-infused topicals and cosmetics sold through a variety of merchants, including online marketplaces and dispensaries. Its licensed manufacturer in Ohio is Buckeye Relief. Filings with the USPTO show that Apothecanna has two trademarks. One covers both nonmedicated and medicated skincare items, while the other applies to clothing. The company doesn’t have an Ohio trademark. “If brand owners secure federal trademark registration protection for their marks for cannabis-related activities that are currently legal, including providing foods or nutritional supplements featuring hemp-seed protein powder or hemp-seed oil,” Bora explained, “and as long as the hemp-seed-derived products comply with other legal requirements,

those trademark registrations may arguably preserve future product and service expansion under the same registered mark for ‘related’ goods and/or Bora services that are unlawful as of the trademark application filing date but later become lawful, including CBD oil-infused foods, CBD-oil infused nutritional supplements and marijuana itself.” As far as federally provided patents, some groups are already getting those for marijuana plant strains. That is allowed because U.S. patent law is amoral and nonjudgmental: It’s why a company could secure a patent related to birth control. The question is whether those patents, being applied to federally prohibited substances, would even be enforceable between marijuana companies. But many brands are seeking those patents to protect their businesses in the future as the cannabis industry matures. After all, patents don’t give someone the exclusive right to make something, but rather to stop someone else from making the same thing. These cases haven’t really played out between marijuana businesses yet. However, in one 2017 case, the manufacturers of Gorilla Glue adhesives successfully stopped cultivator GG Strains from naming a plant “Gorilla Glue,” which was a popular strain in underground marijuana culture. That’s why companies like Ohio’s Standard Wellness have taken up different names. It grows one strain dubbed “Gibsonburg Glue.” Some companies may seek patent protections for various other inventions besides strains, such as methods of lighting or hydration, or even tools like vaporizers. But patent rights issues are more likely to crop up as the market matures. As long as the federal prohibition stays in place, this will simply be the norm for the marijuana industry and the businesses playing in it. “This is all definitely a challenge right now,” Pingor said. “Everyone is trying to walk the line and figure out what they can do. And these cannabis folks just want to focus on their businesses.”

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Q

Adviser: Richard Rabb

A prenup could help your business survive a divorce Even with recent studies indicating that the divorce rate is declining in the U.S., divorces have unfortunately become a part of the American fabric. Without proper precautions in place, divorce can result in the complete dismantling of your life, your finances ... and your business. One valuable tool for helping a business to survive is a prenuptial agreement. A prenup is a contract, entered into by prospective spouses in contemplation and anticipation of marriage, which defines the value of your sole and separate property prior to marriage. It’s im-

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Rabb is an attorney with Clevelandbased McCarthy, Lebit, Crystal & Liffman.

portant to note that Ohio does not currently permit postnuptial agreements. A survey of members of the American Academy of Matrimonial Lawyers found that the number of prenups executed has jumped in recent

Without proper precautions in place, divorce can result in the complete dismantling of your life, your finances ... and your business. years and not just for business owners. As people are getting married at a later age today, they have more assets to protect. On the other hand, others are saddled with student debt for which a new spouse may not want to be responsible.

When entered into correctly, such agreements are generally honored by Ohio courts. Individuals entering into their second marriage, marrying at an older age or entering into marriage as a partial owner of a family business should all consider incorporating a prenup into their wedding planning process to safeguard the assets they bring to the marriage in the event of death or divorce.

Ch

The benefits of prenups are boundless. In divorce proceedings, one of the very first things the domestic relations court must do is determine what assets are marital property subject to division, and what assets are separate property. A court must divide both marital and separate property equitably. Marital property is presumed to include all property acquired during the marriage or those assets produced or earned as a result of the parties’ mutual efforts during the marriage. Generally, for property division purposes, property acquired before the marriage is considered separate property. However, this generalized rule does not automatically mean that just because one spouse holds title to property it is automatically separate property. In addition, just because one spouse receives an inheritance or bequest during the marriage, or a gift that has been given only to that spouse, does not mean the acquired asset is the receiver’s in total. It's still possible for a portion of that property to be transformed into marital property if it appreciates in value as a result of joint efforts. This is called active appreciation. Active appreciation is defined as an increase in the fair market value as a result of the labor, monetary or in-kind contribution of either or both of the spouses that occurred during the marriage. For example, if you own a business before marriage with a value of $500,000 at the time of marriage, and that same business doubles in value as a result of a spouse’s role in the business, the increase may be considered a result of joint efforts and, therefore, must be considered marital property subject to division. As a matter of course, a spouse has the ability to convert separate property into marital property through his or her actions during a marriage. Even an inconsiderable contribution to the growth of the company can convert a family-owned company into marital property subject to equitable distribution. When parties contest whether an asset is marital or separate property, it is presumed to be marital property unless proven otherwise. In the absence of a prenup that provides otherwise, there are multiple angles and arguments to attack the separate nature of a business interest. The court relies on Ohio law to equitably divide property, entitling a spouse to a portion of your business’s appreciation in value, business assets and a portion of the company’s retained earnings. A carefully crafted prenup can protect your business by keeping the foregoing a separate premarital asset. While a prenup can be drafted to waive any interest in property acquired by one spouse during the marriage, as well as any rights and interests in income or profits gained therefrom, it does not, however, have to exclude the other spouse from access to your business assets entirely. Prenups can be advantageous by simply providing the valuation method in case of divorce. These contracts can be drafted to meet your desires, provide financial security in a marriage, and prevent the intrusive review of business records in the event of divorce proceedings.

10/10/2019 11:48:48 AM

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CRAIN’S CLEVELAND BUSINESS

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O C T O B E R 14 - 2 0 , 2 019

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PA G E 15

LEGAL AFFAIRS

Q&A: Kenneth Liffman Chairman, McCarthy, Lebit, Crystal & Liffman Co. From major banking and real estate deals to working for the New York Yankees under storied owner George Steinbrenner to decades of community service that has rightfully garnered him a laundry list of accolades, Kenneth Liffman has had an illustrious career since joining what is presently known as McCarthy, Lebit, Crystal & Liffman Co. 40 years ago. He’s dedicated his career to the smaller-midsize firm, which he filed into fresh out of law school and ran as managing principal from 1993 through 2017. Here, he discusses the state of the legal industry today, reflections on his long career and whether Steinbrenner really carried himself as he was portrayed in “Seinfeld.” — Jeremy Nobile You joined this firm right out of school in 1979. What drew you here versus a larger firm that was almost certainly more lucrative? There were probably eight or nine lawyers here at the time, and they had worked on the deal with George Steinbrenner and the New York Yankees in the 1970s. I was an accounting and finance major, so that was all interesting to me, between the accounting treatment for the sports teams and amortizing player contracts, which changed all major league sports as you know it today. I thought that was pretty cool. If I went to a big firm, I’d probably be doing litigation and buried in a library somewhere — because law firms had libraries back in those days. Instead, my first week here, they flew me to see Steinbrenner in Tampa for a business deal on a building in Solon. But anyway, even though I made less money — I probably took about 40% less coming here versus a big firm — I made that up very quickly and never regretted it. What was it like working with Steinbrenner? Was he really like

how he was portrayed in “Seinfeld”? There were certainly moments when it was truly exciting, but definitely not like “Seinfeld." Even when I was doing everything right, I was getting fired three times per week! When you look back, what are some ways the legal business has changed over the years? Well, the meetings are certainly faster. People are more concerned about cost and billing every second. There is less client loyalty today. There were many professionals back then who thought matters should be handed to them, that they were the subject-matter experts and they were excellent at what they do. It was frowned upon, back then, if someone was out there trying to bring in business. Many viewed the idea of seeking out business as being beneath their skill level. It’s wild to think at one time that drumming up business on one’s own was looked down on. It seems like a lawyer’s value now is often contingent on the clients tied to them.

That’s because the competition is so intense now — not just because of the number of bodies, but because of the nature of the business and marketing aspects now. Businessgetters are prized possessions. And they are certainly not looked at with disdain. Whether in a big or small firm, if you don’t have business coming in the door, you could have all the subject-matter experts you want, they'll still be sitting there twiddling their thumbs. Now, the higher-end firms do this with even more sophistication. You still have to get out there and tell the world about yourself, be online, optimization, all those fancy words. You have to be at the front of someone’s mind. You still need to be very good at what you do. But perhaps, in the past, it was enough to just be really, really good. How has the Cleveland legal market changed over the decades? Maybe this is one reason seeking out business back then wasn’t as necessary: The business was just there. Cleveland, in the 1950s, was the No. 3 business center in the country after New York and Chicago. We’re still a great city and I don’t want to imply anything to the contrary. And I don’t know if the market here has shrunk or just not grown. We still have one of the largest bar associations in the country. And the bigger firms are not doing as much here as they used to. Because of the rate structure here, they can use the Midwest rates to supplement their larger markets in New York or Chicago or Washington or L.A. Is that one of the selling points

for Cleveland law firms? Those Midwestern rates that are less than what you’d find in, say, the coasts or the capitol? I think you bopped it on the nose. I think the quality of our legal practices here are on par with pretty much everywhere I’ve been, and we’ve done deals in all 50 states. But the way we can compete is with a far more reasonable rate. You’ll be paying anywhere from $750-$1,000 an hour, maybe even $1,500-$1,800 an hour in New York or Washington. You can get someone much cheaper here for a vast majority of that work. Here in Cleveland, your rates are generally more in the $400-$600 range. What do you think of keeping up with all the technology in the business today? Technology is both a challenge and an opportunity. Technology has changed every aspect of the practice and the way we communicate with clients. Email and mobile technology have allowed us to communicate more frequently and faster, but not necessarily better. We train our lawyers to be responsive over email and to make it work for them, but to always remember that face-to-face and telephone interaction is almost always preferable because you derive so much more insight from those interactions. But it’s also let us become very familyfocused. Email and mobile technology are vital to our lawyers with young families and especially those with two working spouses. That technology allows us to offer flexible work arrangements, part-time schedules and other accommodations to our lawyers with children to allow them greater latitude in

balancing their professional and parenting obligations. Now, your firm has kept pretty steady through the last several years with a bench of about 40 attorneys. The adage in business is often if you’re not growing, you’re dying. What’s your position on growth? In part because of the autonomy we offer described in the previous answer, we don’t measure our success in terms of number of attorneys. Our culture is very important to us as is our profitability. We are efficiently run, are careful about incurring burdensome debt and seek to obtain a healthy, but not exorbitant margin. Our approach is to be selective about the practice areas we focus on, and we have been successful by strategically adding accomplished attorneys who desire the atmosphere I’ve described. How do you think the legal business might change over the next decade? It’s a popular conversation within the law firm business, but I happen to agree with the narrative that we are moving from being a profession to being an industry. Clients expectations are such that there is a lot of pressure to be more efficient and more process driven, and what is going on with technology is in response to that, as are alternative fee arrangements. Since we have run leanly and efficiently since our inception, I think that McCarthy Lebit is well-positioned to be responsive to this trend. I would say, too, that even greater emphasis on business development and marketing is characteristic of the corporatization of the legal profession.

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PA G E 16

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O C T O B E R 14 - 2 0 , 2 019 |

CRAIN’S CLEVELAND BUSINESS

THE LIST

Private and Parochial High Schools Ranked by fall 2018 enrollment

STUDENTS (GRADES 9-12) FALL 2019/ FALL 2018

AVERAGE TUITION BEFORE AID/ AFTER AID

1

Saint Ignatius High School, Cleveland 216-651-0222/ignatius.edu

1,540 1,524

2

Walsh Jesuit High School, Cuyahoga Falls 330-929-4205/walshjesuit.org

3

TYPE (ROOM AND BOARD)

STUDENT: # FACULTY/ % GRADS TEACHER % ADV. 4-YEAR RATIO DEGREE COLLEGE RELIGIOUS?

$17,300 $8,300

Boys only; Day school

15:1

120 90%

99%

Y/Catholic

The Rev. Raymond P. Guiao, president

1,015 1,018

$12,700 $10,084

Coed; Day school

12:1

77 69%

99%

Y/Catholic

Karl Ertle, president

St. Edward High School, Lakewood 216-221-3776/sehs.net

956 940

$16,850 NA

Boys only; Day school

14:1

68 82%

92%

Y/Catholic

James Kubacki, president

4

Archbishop Hoban High School, Akron 330-773-6658/hoban.org

815 837

$11,350 $8,540

Coed; Day school

13:1

67 67%

97%

Y/Catholic

Tom Curry, president

5

Padua Franciscan High School, Parma 440-845-2444/paduafranciscan.com

780 780

$12,250 $7,980

Coed; Day school

10.6:1

75 66%

85%

Y/Catholic

Father Allan DaCorte, president

6

Notre Dame-Cathedral Latin School, Chardon 440-286-6226/ndcl.org

727 704

$13,300 NA

Coed; Day school

13:1

74 54%

99%

Y/Catholic

Michael J. Bates, president Joseph A Waler, principal

7

Saint Joseph Academy, Cleveland 216-251-6788/sja1890.org

705 725

$15,000 $11,800

Girls only; Day school

12:1

67 79%

97%

Y/Catholic

Mary Ann Corrigan-Davis, president

8

Magnificat High School, Rocky River 440-331-1572/20700 Hilliard Blvd.

701 680

$15,850 $10,810

Girls only; Day school

11:1

82 72%

99%

Y/Catholic

Moira Clark, president

9

St. Vincent-St. Mary High School, Akron 330-253-9113/stvm.com

600 622

$11,250 $8,750

Coed; Day school

12:1

50 68%

97%

Y/Catholic

Tom Carone, president

10

Holy Name High School, Parma Heights 440-886-0300/holynamehs.com

590 587

$10,450 $8,100

Coed; Day school

15:1

39 60%

97%

Y/Catholic

Shelbrey L. Blanc, principal Terrence J. Kenneally, president

11

Cuyahoga Valley Christian Academy, Cuyahoga Falls 330-929-0575/cvcaroyals.org

581 587

$10,800 NA

Coed; Day school

12:1

54 69%

98%

Y/Non-denominational Christian

Jason Spodnik, president

12

Cleveland Central Catholic High School, Cleveland 216-441-4700/centralcatholichs.org

565 550

$8,900 NA

Coed; Day school

10:1

58 47%

92%

Y/Catholic

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

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13

Hawken School, Gates Mills 440-423-4446/hawken.edu

530 510

$30,435 $18,715

Coed; Day school

8:1

70 80%

100%

N

D. Scott Looney, head of school

14

Lake Catholic High School, Mentor 440-578-1020/lakecatholic.org

515 591

$11,100 NA

Coed; Day school

15:1

34 70%

99%

Y/Catholic

Mark Crowley, president

15

Lutheran High School West, Rocky River 440-333-1660/lutheranwest.com

500 465

$11,100 NA

Coed; Day school

12:1

45 76%

96%

Y/Lutheran

Chris Steinmann, superintendent Michael Waugh, principal

16

Villa Angela-St. Joseph High School, Cleveland 216-481-8414/vasj.com

458 461

$9,300 $7,500

Coed; Day school

13:1

34 52%

92%

Y/Catholic

Bill R. Cervenik, president

17

Gilmour Academy, Gates Mills 440-473-8050/gilmour.org

455 444

$27,950 $15,034

Coed; Boarding and day school ($16,000)

10:1

46 74%

99%

Y/Catholic

Kathleen C. Kenny, head of school

18

University School, Hunting Valley 216-831-2200/us.edu

423 425

$33,510 $13,500

Boys only; Day school

7:1

60 82%

100%

N

Patrick T. Gallagher, head of school

19

Elyria Catholic High School, Elyria 440-365-1821/elyriacatholic.com

420 399

$8,600 NA

Coed; Day school

12:1

34 65%

95%

Y/Catholic

NA

20

Western Reserve Academy, Hudson 330-650-4400/wra.net

400 400

$39,600 $17,595

Coed; Boarding and day school ($21,250)

8:1

50 86%

100%

N

Suzanne Walker Buck, head of school

21

Saint Martin de Porres High School, Cleveland 216-881-1689/saintmartincleveland.org

387 400

$17,500 $400

Coed; Day school

13:1

30 48%

60%

Y/Catholic

Charles "Chaz" Napoli, president

22

Hathaway Brown School, Shaker Heights 216-932-4214/hb.edu

375 380

$31,720 $18,000

Girls only; Day school

7.9:1

48 83%

100%

N

Fran Bisselle, head of school

23

Cardinal Mooney High School, Youngstown 330-788-5007/cardinalmooney.com

360 425

$8,500 $500

Coed; Day school

13:1

28 50%

98%

Y/Catholic

Mark Oles, president

24

Trinity High School, Garfield Heights 216-581-1644/ths.org

355 361

$12,500 $10,000

Coed; Day school

12:1

29 38%

71%

Y/Catholic

Sister Shawn Lee, president

25

Lutheran High School East, Cleveland Heights 216-382-6100/lutheraneast.org

342 325

$9,961 NA

Coed; Day school

14:1

25 40%

97%

Y/Lutheran

Andrew Prusinski, principal

26

Beaumont School, Cleveland Heights 216-321-2954/beaumontschool.org

325 318

$15,700 $13,200

Girls only; Day school

10:1

35 80%

100%

Y/Catholic

Wendy A. Hoke, president

26

Central Catholic High School, Canton 330-478-2131/CentralCrusaders.org

325 325

$9,000 $5,900

Coed; Day school

17:1

42 70%

99%

Y/Catholic

Dan Gravo, president

28

Benedictine High School, Cleveland 216-421-2080/cbhs.edu

300 351

$11,900 $8,600

Boys only; Day school

11:1

29 67%

95%

Y/Catholic

Frank Bossu, president

29

Laurel School, Shaker Heights 216-464-1441/laurelschool.org

254 269

$29,403 $22,321

Girls only; Day school

8:1

46 80%

100%

N

Ann V. Klotz, head of school

30

Andrews Osborne Academy, Willoughby 440-942-3600/andrewsosborne.org

204 199

$46,682 $30,000

Coed; Boarding and day school

16:1

27 75%

100%

N

Larry Goodman, head of school

31

St. Paul High School, Norwalk 419-668-3005/NorwalkCatholicSchool.org

199 206

$4,280 NA

Coed; Day school

11:1

20 38%

92%

Y/Catholic

Martin Linder, president

32

Lake Center Christian School, Hartville 330-877-2049/lccs.com

194 195

$9,050 $4,525

Coed; Day school

5.7:1

34 58%

95%

Y/Non-denominational/ Mennonite

Joseph Beeson, superintendent

RESEARCHED BY CHUCK SODER: CSODER@CRAIN.COM

Get 42 schools, contact info and more school officials in Excel. Become a Data Member: CrainsCleveland.com/data Information is supplied by the schools. Send feedback to Chuck Soder: csoder@crain.com

P016_CL_20191014.indd 16

10/10/2019 3:38:36 PM


CRAIN’S CLEVELAND BUSINESS

LIST ANALYSIS Average tuition before and after financial aid for 28 schools providing both figures, both years. 2018-2019 (last school year)

2019-2020 (this school year)

% increase

Before aid

17438.36

18788.39

7.74

After aid

10684.55

11467.07

7.32

Private schools see tuition increases By Chuck Soder csoder@crain.com @ChuckSoder

On average, the schools on our Private and Parochial High Schools list didn’t get any bigger this year, but they did get more expensive. If you average out all 42 schools on the full digital list, their annual tuition for the 2019-20 school year would be $17,030, before financial aid. Factoring out three schools that didn’t provide a tuition figure last year, tuition is up 6.6% this year. Of course, many students don’t pay anything close to the full sticker price. Thirty-two schools told us what their average student pays after financial aid. The average of those averages is $11,467 — nearly 40% lower than the average sticker price for those same schools. Still, the amount that students pay after financial aid did jump 7.3% this year, judging by the 28 schools that gave us data two years in a row. For that smaller group, sticker price tuition jumped 7.7%.

Disclaimer: These are averages. Tuition prices vary greatly by school. And the price after financial aid varies greatly within schools, since not every student gets the same financial aid package (and some get no aid at all). Enrollment issues: For the past two years, we’ve written about how enrollment at Catholic schools on the list has been slowly declining. That trend continues: The 24 Catholic schools on the list saw enrollment fall nearly 1%, on average. The other 18 schools that provided enrollment data for both years saw a 1.25% increase. Once again, St. Ignatius High School tops the list, with 1,540 students, up 1% since last year. In fact, none of the schools in the top five have changed positions over the past year. Three schools in the top 30 posted decreases exceeding 10%: Lake Catholic High School in Mentor, Cardinal Mooney High School in Youngstown and Benedictine High School in Cleveland. No school in the top 30 posted an increase exceeding 10%.

AIR SERVICE CONTINUED FROM PAGE 1

John Boyd, a principal of The Boyd Co., a site-selection consultancy in Princeton, N.J., called air service “a major driver in headquarters site selection. Such projects today are all about talent. It’s hiring the best workforce from around the world. Global sales are a really important part of (Sherwin-Williams’) growth plan. And international air service presents headwinds for Northeast Ohio’s economic development professionals in the struggle to retain the company.” In fact, Boyd pointed to Chicago as an area that’s “on fire” with site-selection experts for air travel reasons. He also cited Boston, Atlanta, Dallas-Fort Worth and Houston as areas with clear advantages over Northeast Ohio. “The success of these markets has so much to do with access to the global marketplace,” Boyd said, pointing to the legacy Sherwin-Williams “Cover the Earth” logo as a reflection of its future ambitions. “Northeast Ohio has a chance to retain them. But if I were a betting man, I’d bet on the gateway cities.” Peter Grant, a data analyst for London-based OAG, a globally known resource for flight information, said in an Oct. 10 interview, “In bald terms, there are airports that surround (Cleveland) that have a large amount of international access on a year-round basis.” OAG data starkly show how Cleveland takes a back seat to other locations. OAG publishes lists of 50 international megahubs globally, and even its breakout list of 10 North American international megahubs does not list Cleveland. However, its “connectivity index,” which considers the number

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of destinations and flights, puts O’Hare at the top with 290, followed by Atlanta, Los Angeles, John F. Kennedy in New York, Dallas-Fort Worth, Miami and Houston. Newark comes in ninth with an index ranking of 169. In 2019, Cleveland has scheduled 1,539 international flights, primarily to Toronto, but also to Cancun and Punta Cana. By contrast, Chicago has 451,453; Atlanta, 436,207; New York at John F. Kennedy International has 215,037; and Newark 208,842. Nearby peer competitors also outrank Cleveland in this measure. Detroit

“The success of these markets has so much to do with access to the global marketplace.” — John Boyd, The Boyd Co.

has 13,982 international flights. Pittsburgh also bests Cleveland with 1,813. Moreover, Spano noted that the resurgence of low-cost, tourist-oriented airlines and flights the last few years at Hopkins don’t fill the bill for locations sought by corporations. Another factor in that analysis is the existence, since it took to the air in the 1980s, of what is now a Sherwin-Williams fleet of three corporate jets based at Hopkins. Mike Conway, Sherwin-Williams spokesman, wrote in an email that the private jets are available to “Sherwin associates who are connecting with customers to serve their needs.” Conway declined to single out the significance of international travel or other specific issues factoring into the company’s decision. However, in a 17-second video the company distributed of CEO John G.

O C T O B E R 14 - 2 0 , 2 019

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PA G E 17

Morikis announcing its search for a headquarters and consolidated research locations, Morikis mentioned both the company’s “global headquarters” and “global customers.” Conway wrote in an email that air service “is one of many important factors that allows us to best meet the needs of our customers across the USA and around the world.” Neither Greater Cleveland Partnership nor Team NEO, the region’s leading economic development organizations, would discuss air travel as a specific factor in keeping Sherwin-Williams. Spano said that Cleveland may help the way the paint and coatings maker views its hometown by continuing to work on easing access and parking issues that plague the region’s frequent fliers and even by vowing to improve international air service. OAG’s Grant noted, however, that the city has multiple locations nearby that put it one stop away from international routes, which he called “a real plus.” OAG estimates that more than 1.7 million travelers pass through Cleveland annually, which he considers a very significant factor. Boyd, who has family connections to Cleveland, said some unexpected factors besides site costs and taxes may also go into Sherwin-Williams’ site-selection formula. “They may want to move closer to universities that are strong in terms of chemical research,” he said. “They may view this as a chance, the same way as General Electric Co. with its corporate move to Boston, to refresh its image as a technology company. Site selection is a mix of science, in terms of quantitative factors on costs, and art. Today, you have marketing and branding consultants involved in the search.”

Crain’s People on the Move showcases industry achievers and their companies to the business community. For more information, contact Debora Stein at dstein@crain.com or submit directly to CrainsCleveland.com/people-on-the-move Ask about our 6x and 13x bulk commitments. Advertising Section

PEOPLE ON THE MOVE

10/11/2019 2:29:25 PM


PA G E 18

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O C T O B E R 14 - 2 0 , 2 019 |

CRAIN’S CLEVELAND BUSINESS

AKRON

Startup aims to change reality for seniors By Dan Shingler dshingler@crain.com @DanShingler

Just because you’re homebound doesn’t mean you can’t go to Italy. Or Lake Erie, your childhood hometown, for a walk in the woods or virtually anywhere else your heart desires. That’s the premise behind a new Akron startup, Immersive Cure, which aims to bring virtual reality (VR) to hospices, senior living centers and nursing homes. “I’ve deployed it more than 100 times now,” said Jessica Benson, who added that before starting the company at the end of last year she was already an advocate of integrating virtual reality with health care by virtue of her past hospital volunteer work with children. With her company, however, she’s begun to focus on bringing VR to the elderly and the terminally ill, including area veterans. “We are taking it to people in hospice, palliative care, to veterans’ facilities, in-patient units and people’s homes. Wherever the patient calls home, that’s where we take it,” Benson said. The “it” is a backpack kit that Benson has named “RoVR!” It includes VR goggles that can accommodate a user’s glasses, a matching headset for sound, six programs offering relaxation scenarios or visits to favorite spots like the shores of Lake Erie, along with materials to clean the equipment between uses. She’s teamed up with Akron’s New Territory, a startup focused on commercializing virtual and augmented reality for anything from marketing to health care. Benson and New Territory founder Bill Myers share space at Akron’s Bounce Innovation Hub,

Former Youngstown-area resident Marilyn Benson, mother-in-law of Immersive Cure founder Jessica Benson, got to visit some of her favorite places via virtual reality before she passed away in August. (Contributed photo)

where Myers already was set up when Benson found him. Myers said he agreed to become Benson’s chief technical officer in exchange for a minority stake in the company, in part because he was impressed by her ideas for applying VR and the people he realized she could help. “The moment I saw something this meaningful to work on with Jessica I immediately said, ‘Yeah, I need to go do that,’ ” Myers said. “And it has a lot of pieces from things I’ve worked on in the past ... like being able to shoot

something on the fly and quickly get it into a headset for patients.” So far, Immersive Cure consists of Benson, Myers, two outside developers and a marketing person that New Territory and Immersive Cure share. The company has a small investment from some local angel investors, Benson said, and will soon be presenting to other sources of capital, including the Northeast Ohio Student Venture Fund at the University of Akron. Benson said she formed the company in practice late last year. Then, in

March, she met Myers and formally formed Immersive Cure as an LLC. Among the first seniors who first tried Immersive Cure’s VR was Benson’s own Benson mother-in-law, who was terminally ill before passing away this past August, she said. Benson’s first sale came this summer, when Sandusky-based Stein Hospice completed its evaluation of the system — including working with Benson to let patients try it out — and then purchased four of the units. Stein community and veterans coordinator Sherri Bourne said once company CEO Jan Bucholz and chief operating officer Tamara Zuilhof saw the system, they spearheaded efforts to raise funds specifically so the nonprofit hospice could purchase the units. Those asked to contribute also quickly saw the value of VR in demonstrations, which made raising the funds easier, she said. The hospice has 18 in-patient beds as well as hundreds of patients spread across a five-county area. They’re in private homes, senior living centers, nursing homes and hospitals, according to Bourne. “We go wherever the patient is,” she said. That made Benson’s VR system particularly attractive, Bourne noted, because with its RoVR! backpack it’s easy for hospice staff to take it on the road to share with patients and their other caregivers. It may not be a medical device, per se, but it’s definitely helping to improve patients’ quality of life, said Bourne, who predicted VR therapy will one day be covered by insurance programs like Medicare.

“We try to bring much support, not only medically but spiritually, including comfort care … and where we think VR comes in is with that comfort care,” Bourne said. Hospice patients are often dealing with chronic pain and a lot of anxiety, she said, but you can see some of that lifted from them when they put on the VR goggles and headset. “It’s interesting to watch someone in it,” Bourne said. “You can see them become totally relaxed, to the point that their breathing actually changes. … If their hands are maybe up and tense, you can see their hands go to their side and they’re very relaxed. It takes them to a different place than where they are, and that’s the point.” Recently, Stein has been working with Benson to customize the experiences. In addition to things like a walk in the park or a visit to a beach, patients will be able to revisit their favorite places. Benson and Myers made a special program for a patient who asked if they could visit Kelleys Island one last time, which Immersive Cure worked up as a virtual tour of parts of the island. Next, Benson said she’s going to work on special content for veterans. Many veterans would love to see things like the Vietnam Veterans Memorial and other structures built to honor them, but can’t get to the nation’s capital, she said. As for the business model, Benson said she sells the RoVR! kits for $3,000. They come with a one-year license to six virtual-reality programs, though users can license more if they choose. She and Myers have created a dozen programs so far, but plan many more. The company hopes to make money from subscribers licensing content, by adding new content for them to license and by signing up more users to expand the subscriber base. SEE VR, PAGE 19

Born from recession, Metis keeps on growth track By Karen Farkas clbfreelancer@crain.com

Ten years ago, as the economy reeled during the Great Recession, Julie Brandle decided to start a business. She set up shop in a 10-foot-by-10foot storage closet in a Brimfield building and began offering facility management services to companies in Portage County. Today, Metis Construction Services has 57 employees, provides general contracting and other services in Ohio and nearby states, and racks up more than $20 million a year in sales. Brandle attributes her success to developing relationships, taking risks and making sacrifices. The company was founded on the principles of its namesake: Metis, the Greek Titan goddess of wisdom, planning and good counsel. “We have sought strategic, thoughtful growth,” Brandle said. Her management team includes co-founder and chief financial officer Donna Komar, and their husbands, Steve Brandle, who oversees construction operations, and Jeff Komar, who oversees administrative operations.

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“We could have located outside a city, but this is our business card.” — Julie Brandle, founder of Metis Construction Services

Julie Brandle, who began her career in marketing and development for nonprofit organizations, said she entered the construction business in 2009 because she and her husband were desperate. In late 2006, after working for seven years in sales and marketing for a residential home builder in North Canton, Brandle was told the company was being dissolved because the

owners believed a recession was near. She spent the next year helping the company sell the remaining homes under construction and the properties it managed. Armed with sales and construction skills from that job, a real estate license and certifications in new-construction sales and aging in place, Brandle and her husband, who lost his job with a commercial contractor when the Cleveland firm went out of business, decided to set out on their own. The couple, who live in Brimfield, initially started small, contracting with regional banks to provide maintenance and services to their buildings. They subcontracted electrical, plumbing and HVAC. The company’s fortunes brightened in 2010 when entrepreneur Ron Burbick took what Brandle said was a “leap of faith” by choosing Metis as the general contractor for the extension of his Acorn Alley redevelopment in downtown Kent. Construction of Acorn Alley II, a 20,000-square-foot, mixed-use restaurant/office development on Erie Street, included demolishing half a city block. The firm used a small office in Acorn Alley during the project and now operates in a large office on the second floor. “We could have located outside a

city, but this is our business card,” Brandle said as she stood in the brick courtyard of the development. In recent years, the company has followed a strategy that has led to ongoing growth. Once Metis secures a contract for a job, the staff builds a relationship based on completing a quality project on time and on budget, Brandle said. That leads to future jobs with the same business or developer. For example, Metis has worked on several new projects and renovations for Chase Bank and Buffalo Wild Wings. Its most significant ongoing partnerships are with two developers to build Dollar General stores throughout Ohio and in Illinois. Metis’ portfolio is varied. A contract to build cabins at the Girl Scouts’ Camp Timberlane in Erie County led to the award of a $3 million contract to create and build cottage-style cabins, troop houses, an infirmary and a program center at Camp Ledgewood in Peninsula. “They are just wonderful and so customer-service-oriented,” said Jane Christyson, chief executive officer of Girl Scouts of North East Ohio. “They earned this business.” Christyson said she once felt she was imposing when she asked a Metis employee about a small detail on a project.

“They said, ‘If it is important to you, it is important to me,’ ” she recalled. Brandle said Metis doesn’t just think about its customers; the company wants to help the communities that have helped make it successful. She and her employees have volunteered for Habitat for Humanity, Rebuilding Together and the LeBron James Family Foundation. Brandle and her team are planning the future of the company, which is expanding beyond general contracting, construction management and facilities maintenance. It now has two architects who provide design services. Brandle said she is hoping for guidance as a member of this year’s cohort for Scalerator NEO, a program for entrepreneurial leaders of small companies who are seeking to reach the next level of growth. Scalerator organizers said that the program has helped companies in previous cohorts grow significantly, with three- quarters of them increasing growth by 25% or more after participating. Taking part in Scalertor seems to reflect the mindful way Metis has grown. “I want to be strategic about it,” Brandle said.

10/11/2019 11:52:16 AM

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Polymer Packaging to invest $10 million in extrusion lines By Jim Johnson jjohnson@crain.com

Polymer Packaging Inc. is jumping back into the extrusion business after more than a decade of absence. The Massillon-based flexible and protective packaging maker initially is spending more than $10 million on equipment and expects to start film production soon on a pair of threelayer, coextrusion lines made by Windmöller & Hölscher, the company said. “Our team was discussing growth strategies in the spring of 2018. We decided to take an approach of asking our customers where they felt there were needs that we might be able to fill,” CEO Larry Lanham said in an email interview. And one customer asked whether the company would consider manufacturing film. Polymer Packaging previously entered that business in 2007, but the CEO said the timing of that decision was “not ideal.” “The banking industry was failing and being bailed out, the resin market was escalating with ongoing, back-to-back increases and the economic conditions were unstable. This made the decision to exit a prudent one. The good business decision

VR

CONTINUED FROM PAGE 18

They’ll also create special-order VR programs customized to specific locations or patient groups for those who ask and are willing to license them, like the Kelleys Island experience, Benson said. There’s not a lot of competition out there yet, Benson noted. Bourne said Immersive Cure was the first VR program for seniors that she’d seen. With only four units in use so far, Benson said she has a long way to go — but a lot of fertile ground ahead of her. “There are 4,400 hospices in the U.S. and 50 in Ohio ... and about 6 million people in palliative care” in the U.S., Benson said, adding that there are also many more nursing homes, senior living centers and home caregivers. Bourne predicted the concept will be a hit with other hospices and caregivers and said some have already contacted her to learn more after hearing that Stein was successfully using VR. “Not long ago, I got a call from a hospice in Maine asking about this because they’d heard we were using it and wanted to learn more,” Bourne said. It’s not just useful for patients either, she added. Caregivers, especially family members, can often suffer stress along with the people in their care. VR can give them a break and a source of relaxation. She said she thinks the system practically sells itself to anyone who puts on the goggles, including her. She was skeptical before trying it, but no longer. “Once people see it … it’s a gamechanger,” Bourne said.

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was to exit extrusion to ensure the ongoing health and longevity of the core business,” Lanham said. But that was 2008. “Right now we see a lot of opportunity for growth and feel that there are markets that we can serve well. The base infrastructure, including the building, are in place and we have some relationships that can bring some initial sales to the launch. That led us to returning to extrusion,” he said.

“Right now we see a lot of opportunity for growth and feel that there are markets that we can serve well.” — Larry Lanham, Polymer Packaging Inc. CEO

Polymer Packaging already sells a lot of items into the specialty film and bag markets where the company can offer stronger, thinner products from film made on W&H lines. The company said customers will help guide its journey back into extrusion. “As to where the future takes us — we will let the market and our success stories give us direction,” Lan-

ham said. The company website announced the addition for the company under the Polymer Film & Bag Inc. name. Polymer Packaging’s facility already had room for the new W&H equipment, which Lanham expects to begin production in November. Manufacturing will take place in an existing 100,000-square-foot portion of the company, where the first phase of work was designed to accommodate up to six extrusion lines. There’s room to eventually increase that number to 18. The company expects to install a total of four additional lines in 202021. Production will include bags on rolls, individual clean-cut flat bags and gusseted bags. The two lines will also make converter-grade, three-layer sealant film as well as stretch hooder and shrink films. Initial capacity is 20 million pounds per year. “Most of the infrastructure was already in place, including plenty of clean power, high bay, rail and silos. We upgraded flooring, compressed air and chilling as well as line cameras to coordinate and record every foot of film production,” Lanham said. Plastics News is a sister publication of Crain’s Cleveland Business.

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Advertising Section

CLASSIFIEDS To place your listing in Crain’s Cleveland Classifieds, contact Suzanne Janik at 313-446-0455 or email sjanik@crain.com BUSINESS FOR SALE

LIST YOUR

Thinking of Selling? Free Market Analysis No Upfront Fees mike@empirebusinesses.com www.empirebusinesses.com 440-461-2202

RETAIL SPACE HERE!

REAL ESTATE

REAL ESTATE AUCTION - THURS OCTOBER 17 @ 1 PM Attention Real Estate Developers! - Premier 4+ AC Land Site 3,500 sq ft Office Building - Montrose Bath Twp - OH

127-141 N. Cleveland Massilion Rd Akron, Ohio •Originally Listed @ 1.6 mil. •Sugg. Opening Bid ONLY 250k! •3,500+ SF Office Bldg w/Parking •10,000+ Cars/Day Traffic Count •Zoned B4 & R3- 265’ frontage •Ideal Office/Apt/Asst Living/Hotel •Next to Rest/Retail/Shop/Hwy On-Site Inspection Dates: 9/19 & 26 - 10/3 &10 (12-2 pm)

Call Jared Dutton @ 330-879-5000 or Email jdutton3@kw.com Visit www.montroselandauction.com for photos & complete terms.

Terms: $22,500 down day of sale in form of certified cash or certified check. Balance due @ closing on or before Nov. 25 2019. Buyers prem of 10% will be added to the high bid to establish the total purchase price. AUCTIONEER: Jared Dutton, AARE - Dutton Real Estate Auctions BROKER: Keller Williams-Legacy Group Realty

STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION (STATEMENT REQUIRED BY THE ACT OF AUGUST 24, 1912, AS AMENDED BY THE ACTS OF MARCH 3, 1933, JULY 2, 1946 AND JUNE 11, 1960 (74 STAT. 208) SHOWING THE OWNERSHIP, MANAGEMENT AND CIRCULATION OF:

1. Title of Publication: Crain’s Cleveland Business 2. Publication number: 532-210 3. Date of filing: September 30, 2019 4. Issue frequency: Weekly, except last issue in Dec. 5. Number of issues published annually: 51 6. Annual subscription price $64.00 7. Location of known office of publication: Crain Communications Inc., 700 W. St Clair Avenue, Suite 310, Cleveland, Cuyahoga County, OH 44113-1230. 8. Location of headquarters or general business offices of the publisher: Crain Communications Inc., 700 W. St Clair Avenue, Suite 310, Cleveland, Cuyahoga County, OH 44113-1230. 9. Full names and complete mailing address of Publisher, Editor, and Managing Editor Publisher: Elizabeth McIntyre, Crain Communications Inc., 700 W. St Clair Avenue, Suite 310, Cleveland, Cuyahoga County, OH 44113-1230. Editor Elizabeth McIntyre, Crain Communications Inc., 700 W. St Clair Avenue, Suite 310, Cleveland, Cuyahoga County, OH 44113-1230. Managing Editor: Scott Suttell, Crain Communications Inc., 700 W. St Clair Avenue, Suite 310, Cleveland, Cuyahoga County, OH 44113-1230. 10. Owner (if owned by a corporation, its name and address must be stated and also immediately thereunder the names and addresses of stockholders owning or holding 1 percent or more of total amount of stock. If not owned by a corporation, the names and addresses of the individual owners must be given. If owned by a partnership or other unincorporated firm, its name and address, as well as that of each individual must be given.): Crain Communications Inc., 1155 Gratiot Ave., Detroit, MI 48207-2997; K.C. Crain, 1155 Gratiot Ave., Detroit, MI 48207-2997 11. Known bondholders, mortgages and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: None.

15. Average number of copies of each issue of this publication sold or distributed through the mails or otherwise during the 12 months preceding the date shown above was: Total number of copies: 22,608; Paid distribution outside the mails including sales through dealers, carriers, street vendors and counter sales and other paid distribution outside USPS: 1; Mailed outside-county paid subscriptions stated on PS Form 3541: 5,290; Mailed in-county paid subscriptions stated on PS Form 3541: 8,478; Paid distribution by other classes of mail through the USPS: 1; total paid distribution: 13,770; Free or nominal rate outside-county copies included on PS Form 3541: 7,358; Free or nominal rate in-county copies Included on PS Form 3541: 792; Free or nominal rate distribution outside the mail: 206; Free or nominal rate copies mailed at other clases through the USPS: 0; Total free or nominal rate distribution: 8,356; Total distribution: 22,126; Copies not distributed: 482; Total: 22,608, Percent paid: 62.23%. Actual number of single issue published nearest to filing date (Sept. 30, 2019); Total number of copies: 22,194; Paid distribution outside the mails including sales through dealers, carriers, street vendors, counter sales and other paid distribution outside USPS: 2; Mailed outside-county paid subscriptions stated on PS Form 3541: 5,258; Mailed in-county paid subscriptions stated on PS Form 3541: 8,418; Paid distribution by other classes of mail through the USPS: 4; Total paid distribution: 13,682; free or nominal rate outside-county copies included on PS Form 3541: 7,940; Free or nominal rate copies mailed at other classes through the USPS: 0; Free In-county copies: 0 Free or nominal rate distribution outside the mail: 100; Total free or nominal rate distribution: 8,040; Total distribution: 21,722; Copies not distributed: 472; Total: 22,194; Percent paid: 62.99%. 17. Publication Statement of Ownership, if the publication is a general publication, publication of this statement is required. Will be printed in the October 14, 2019 issue of this publication. 18. I certify that the statements made by me above are correct and complete. Elizabeth McIntyre, Publisher 09/30/19

REAL ESTATE

REAL ESTATE AUCTION - THURS OCTOBER 24 @ 1 PM Premier 35+ AC Land Site - N Chillicothe Rd (306), Aurora, OH Attention Real Estate Developers -Trustee Directs Immediate Sale

Located just North of 82 & 306 Across from Barrington On-Site Inspect Dates: Sept 25, Oct 2, 9, 16 (12-2 pm ) •55+ Yr Family Ownership •35 Ac. Site – Selling in Entirety •Over 287’ Frontage •Zoned R-3 Residential •Wooded and Treed Site •All Utilities Available @ Street

Call Jared Dutton @ 330-879-5000 or Email jdutton3@kw.com Visit www.auroralandauction.com for Bidders Packet, Maps & Complete Terms.

Terms: $22,500 down day of sale in form of certified cash or certified check. Balance due @ closing on or before Nov. 30 2019. Buyers prem of 10% will be added to the high bid to establish the total purchase price. AUCTIONEER: Jared Dutton, AARE - Dutton Real Estate Auctions BROKER: Keller Williams-Legacy Group Realty

Crain’s Cleveland Business’ classifieds will help you fill that space. Contact Suzanne Janik at 313-446-0455 w w w. c r a i n c l e v e l a n d . c o m / c l a s s i f i e d s

10/11/2019 11:52:42 AMPM 10/8/19 3:43


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and land developers,” Knez said. “We’re not perfect but do our best.” The company forecasts sales of more than 90 homes and townhouses by the end of 2019, following 60 in 2018. It does not disclose revenue. For all he’s accomplished, Knez said the most fulfilling part of his life is his two children, a son and daughter, who are young adults and don’t want any part of the business. He and his wife, Carol, live in Chardon. He also kept cows as a hobby until both his children left for college. Succession at the company is one of the things Knez is now considering. However, he is in his 50s and has no desire to retire yet. “I’d lose my mind after two weeks,” he said. The company is also not a finished project. Knez Homes is now building a 60-unit apartment complex in Willoughby and has lined up enough land in the region to build 400 suites. “It’s another form of diversification,” Knez said of the apartment drive. “It’s a more complicated type of building.” Long-term, whether it holds onto the apartments or sells them, he said, will depend on the kind of return a deal offers.

Knez is also plunging into more markets. Besides developing land for homes in Akron, Knez is about to start building single-family homes on infill sites in Akron’s Highland Square neighborhood. The firm is about to start building homes in Cleveland’s Fairfax neighborhood, is building about 20 in the Circle North area in Glenville that’s part of Mayor Frank Jackson’s Neighborhood Transformation Initiative. It’s also building on other scattered sites in Glenville. Last February, Knez bought an acre parcel for $100,000 on Wade Park Avenue near Lakeview Drive that once served as the parking lot for the former Hough Bakeries employees. In a joint venture, he also has the former Hough Bakeries Building on Lakeview under contract and is studying potential uses for it. Knez followed the market to the city. After building a custom home in Tremont for about $900,000, he began diving in about 2014. The company builds on single lots and the city has a lot of them. He estimated his company has erected about 200 homes in the city at this point.

PEOPLE ON THE MOVE

“The goal is to look two and three years ahead. You see what’s the next acceptable location. Then we dip our toes in.” — Bo Knez

Bill Sanderson, formerly a vice president at Knez who now heads home-building nonprofit Urban Community Developers Inc. in Covington, Ky., said he thinks the move to the city was a natural one as national home builders slash margins for local competitors, especially in the production side of the business. “Knez is a self-made man,” Sanderson said. “He does not come from a long line of builders. I have always felt that he very carefully and thoughtfully creates and follows a business plan. There are happy accidents in the business in particular parcels, but in (Knez’s case) he follows a rigorous plan with financial controls.”

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Sanderson said Knez also digs into the context of the areas in which he builds. “I talk to people and find out who they are and their concerns,” Sanderson said. “Knez goes beyond that, to the point you think he knows every single blade of grass.” For his part, Knez said building in the city attracted him for a simple reason: “I couldn’t understand why people weren’t building near the city of Cleveland.” Recently, Knez surfaced with projects in and near high-poverty African-American neighborhoods. He said when others sell $400,000 townhouses in job- and culture-rich University Circle, he can probably build $200,000 homes nearby, which has proven to be the case. He started buying lots on the city’s East Side three years ago because he felt land was becoming scarcer, and pricier, in Tremont and Ohio City. “The goal is to look two and three years ahead,” Knez said. “You see what’s the next acceptable location. Then we dip our toes in.” Architect David Ellison, whose practice is located on Lorain Avenue

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near where Knez has been active, called a recent Knez townhouse project on West 47th Street out of place: The units are four floors tall and brick, a commercial product out of sync with nearby homes — even though it’s only about 100 feet south of Lorain. For his part, Knez said that is because the city likes townhouse projects fronting on streets with parking on the back side of the suites. Handling different cities and neighborhoods, he added, is a matter of “getting the pulse of the leadership” as to what they will support. “Some want density. Others don’t,” Knez said. “Some want modern. Others want traditional. Overall, there’s been a shift in what people want. In the 1980s, people wanted single-family homes on a golf course. Now, they want to live near restaurants and entertainment.” There is one aspect about building in the city where he grew up that makes Knez emotional. “It warms my heart,” Knez said, “to go through downtown and see people eating lunch on the patios outside of restaurants and living nearby.”

Advertising Section

To place your listing, visit www.crainscleveland.com/people-on-the-move or for more information, please call Debora Stein at (917) 226-5470 or email dstein@crain.com.

ENGINEERING & CONSULTING

LAW

LAW

SERVICES

TECHNOLOGY

Karpinski Engineering

Walter | Haverfield LLP

Brennan Manna Diamond

Action Management Services

Tiger Pistol

Jessica Hanes, MBA, has been promoted to Director of Human Resources. She has been part of the Karpinski Engineering team since 2014, supporting both human resources and finance, and will continue to serve as Senior Accountant. Hanes brings a robust professional background to her role, having been an entrepreneur, business owner, and educator. She is also an active philanthropist and volunteer. Learn more at www. karpinskieng.com.

Walter | Haverfield LLP is pleased to announce that Amanda Lauer has joined the firm as an associate in its Real Estate group. Lauer is skilled at negotiating and drafting numerous types of real estate documents, including leases, license agreements, purchase and sale agreements, SNDAs and finance documents. She is also experienced in business law, including the formation of business entities and the structuring of operating agreements. For more information, visit www.walterhav. com.

We are pleased to announce Attorneys Blake R. Gerney and Russell T. Rendall have joined BMD. Blake has more than 20 years of legal experience in Gerney commercial real estate, land use, construction law and financial services, including development, zoning, construction documents, leasing, finance and loan documentations. You can reach Blake in our Akron office at brgerney@bmdllc. com. Rendall Russell’s practice is focused on litigation and providing advice and counsel for clients related to a broad array of employment and labor matters. He has extensive experience handling employment-related claims and charges before state and federal courts and administrative agencies. You can reach Russell in our Cleveland office at rtrendall@ bmdllc.com.

Action Management Services has named Dave Fechter as Vice President of Business Development & Operations. Dave is responsible for driving and guiding the growth of our executive search and recruitment practice. With 20 years of senior management experience, Dave is equipped to provide unique perspective and insight to our expanding customer base. To discover why Forbes has recognized us as America’s Best Executive Search Firm, please contact Dave at 216.573.4285 or dfechter@ actionmgmt.com.

Paul Elliott was recently appointed Chief Executive Officer of Tiger Pistol. Elliott previously served as President and Chief Digital Officer at BrandMuscle. He has held senior leadership positions in several large digital agencies, and successfully built and sold his search engine marketing agency, which ultimately became part of Razorfish. Elliott also served as the Director of Digital Marketing for the specialty retailer Things Remembered. He began his career at IBM.

HEALTH CARE LAW

NOMS Healthcare NOMS Healthcare promotes Anna Tutlow to vice president, Imaging Services. With a degree in radiologic technology from Bowling Green State University, she brings eight years’ experience in imaging and radiology services to her new post. During her tenure with NOMS Healthcare, she has established multiple, fullmodality imaging centers across Northern Ohio. Her new role will focus on further expanding the NOMS Imaging Services footprint across Northern Ohio and beyond. Visit: NomsHealthCare.com.

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Tarolli, Sundheim, Covell & Tummino LLP Tarolli welcomes new associate Melissa MacDonald. Melissa’s practice is focused on drafting, filing, and prosecuting patent applications in the chemical and life sciences fields. She has experience in a number of technology areas including pharmaceuticals, medical devices, biologics, and chemical polymers. Melissa received her B.S. magna cum laude from Western Washington University, her M.S. in Chemistry from Colorado State University, and her J.D. from University of Colorado School of Law.

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CRAIN’S CLEVELAND BUSINESS

Reid Sheppard joined Tiger Pistol as Senior Vice President, Engineering. Sheppard has nearly two decades of experience leading teams in developing and implementing complex technology solutions and systems. Prior to Tiger Pistol, Sheppard served as Vice President, Technology at Robots and Pencils; Senior Technology Manager at OverDrive, Inc.; and Senior Application Development Manager at Progressive Insurance.

Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

10/11/2019 12:14:35 PM


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CRAIN’S CLEVELAND BUSINESS

David Klotz

President, Precision Metalforming Association David Klotz has a lot of plans for the Precision Metalforming Association, where he became president on Feb. 1. He wants to update and modernize the association’s facilities in Independence, and he plans to also modernize the way the association approaches meetings and events. Klotz has been involved with the organization for years, first as part of his family’s metal-stamping company and later as a board member. Since taking on the role of president, Klotz has focused on meeting with members across the country, getting to know them and sharing information about the different kinds of work the association does. That includes the organization’s relatively new Metalform EDU online learning platform. Classes on a range of topics are available in English, with many available in Spanish, as well. This conversation has been edited for clarity and length. — Rachel Abbey McCafferty

The Klotz file How he spends his free time With his family in Michigan

Family time They like golfing or watching movies.

Favorite family flicks The “Avengers” movies

Athletic aspirations He wanted to be a pro soccer player.

Getting to know Cleveland He’s a fan of East 4th.

Lunch spot The Oak Barrel 5975 Canal Road, Valley View 216-520-3640

The meal One had water with the vegan falafel sliders and fries, while the other opted for chicken tacos and the special chorizo tacos with iced tea.

The vibe The Oak Barrel manages to feel both rustic and trendy. It offers upscale bar food, as well as seafood and vegetarian or vegan options.

The bill $24.24, plus tip

Why is it so important for PMA to offer training right now? There’s still, today, more jobs that are open than people that are out there. It’s very competitive. But they’re hiring people that have never been in a stamping facility, so this helps get them up to speed. And we’re getting quotes from our members that now it’s part of their core curriculum. Would you say PMA’s always played that kind of role for its member companies? We’ve had pretty good videos and training document videos and presentations that we’ve done pretty well with. We had books we created in years in the past. And then we put on a lot of educational seminars. The challenge is how advanced do you make those seminars, because you want people to come there and you don’t want them to be bored if they’ve got experience. But if we make it real in-depth, then someone that’s new coming on board, it’s very difficult for them because it’s way too over their head. So this way, they can learn on their own pace. What have you learned this year since becoming president that maybe surprised you or that you weren’t expecting? Well, I think everyone has a perception they know how to run an association from the outside. The difficulty is, when our members are engaged, they see the benefits. But when you get a new member or an old member that’s not engaged — we may have had an old member that was very engaged, and now

there’s a transition and the next generation, maybe the next generation doesn’t see the value of the networking. Showing that value to the prospects, new members or old members that have gone through a transition, getting them to understand that value: It’s different for everybody. Some people think it’s important for networking, that I can call another member that’s like me, having the same challenges. We do, I think, a very good job on that. We have multiple networking groups that CEOs, vice presidents can be part of. It’s kind of like a side board for them or a quasi-board. And some of those people are competitors in that group. But they’re open and they can share ideas. They do plant tours. Or if someone’s struggling with something, they can go to this group. And it’s been a really good advantage for a lot of our members. But some other people might see advocacy as a huge benefit, and they don’t want to network. What’s something you’d want people to know about your members? One of the key things I see is the value they bring in the community that they’re established in. Especially since ’08, ’09, a lot of our members, many of them, have really grown over the last 10 years. So the job creation they have created in an area has been huge. And manufacturing’s so important to our economy. What are some of the biggest challenges you see facing your members today? Obviously, there’s a slowdown coming up. From the surveys we’ve

done of our members, shipments are still up; member sentiment, the majority are still positive but there is a larger portion now of our members concerned the economy might be slowing down. The new NAFTA agreement, that’s been trying to get finalized for a long while now. So those uncertainties, for some of our members, because they do shipments to Mexico or they have a facility in Mexico, how’s that look? Until that’s in place, that uncertainty’s there. And then, the next generation — do they want to be involved in the company? When we spoke before, you had mentioned that PMA was probably going to do a new strategic plan. The goal is to lay out a new strategic plan. Right now, I’ve been focused on the magazine side of it. So what does our magazine and our staff entailed in that, what’s that look like in the next two years and then, in the next five years? With everything going more online, what is our makeup of our staff at that time? The rest of PMA, I’m evaluating some of the activities. We put on more than 60 events a year. So, which ones should we consolidate? Can we join a couple meetings together? Which ones is it time to sunset? Obviously, the next generation is so used to looking at their phone and getting information right away. So the purpose of flying across the country, or fly three hours, two hours to a venue, to get information and fly back — well, they’re looking at they’d rather get the information and get out. So that’s where we’re looking at our meetings.

700 W. St. Clair Ave., Suite 310 Cleveland, OH 44113-1230 Phone: (216) 522-1383 www.crainscleveland.com Twitter: @CrainsCleveland Publisher/editor Elizabeth McIntyre Group publisher Mary Kramer Managing editor Scott Suttell Sections editor Michael von Glahn Creative director David Kordalski Web editor Damon Sims Associate editor/Akron Sue Walton Assistant editor Kevin Kleps Senior reporter Stan Bullard, Real estate/construction Reporters Jay Miller, Government Rachel McCafferty, Manufacturing/ energy/education Jeremy Nobile, Finance Kim Palmer, Government Dan Shingler, Energy/steel/auto/Akron Lydia Coutré, Health care/nonprofits Senior data editor Chuck Soder Cartoonist Rich Williams Local sales manager Megan Lemke Events manager Erin Bechler Integrated marketing manager Michelle Sustar Managing editor custom/special projects Amy Ann Stoessel Associate publisher/Director of advertising sales Lisa Rudy Senior account executives John Petty, Scott Carlson Account executives Laura Kulber Mintz, Loren Breen People on the Move manager Debora Stein Pre-press and digital production Craig L. Mackey Office coordinator Karen Friedman Media services manager Nicole Spell Billing YahNica Crawford Credit Thomas Hanovich Crain’s Cleveland Business is published by Crain Communications Inc.

Chairman Keith E. Crain Vice chairman Mary Kay Crain President KC Crain Senior executive VP Chris Crain Secretary Lexie Crain Armstrong CFO Robert Recchia G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) Reprints: Laura Picariello, 732-723-0569 or lpicariello@crain.com Customer service and subscriptions: 877-824-9373 Volume 40, Number 41 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for the last week of December, at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2019 by Crain Communications Inc. Periodicals postage paid at Cleveland, OH, and at additional mailing offices. Price per copy: $2.00. Postmaster: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. 1-877-824-9373. Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, MI, 48207-9911, or email to customerservice@crainscleveland.com, or call 877824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.

THE WEEK Condo craze

that Timken was stepping down immediately from those positions, as well as from the chairmanship of the TimkenSteel board of directors. The board appointed Terry L. Dunlap as interim president and CEO. John P. Reilly, the current lead director of the TimkenSteel board, assumed the role of chairman. Dunlap has been a TimkenSteel director since August 2015. He spent 31 years with specialty metals company Allegheny Technologies Inc.

The Geis Cos. of Streetsboro paid $15.45 million for the 10-story Avenue Tower and associated land at 1211 St. Clair Ave. Geis had indicated when it presented plans for city approvals necessary to build last summer that it planned to build additional condominiums. On Oct. 4, it won Cleveland City Planning Commission approval for its plan to build a five-floor condo building immediately north of the current Avenue Tower. It would contain 31 units costing about $400,000 apiece.

New approach

Change at the top Ward J. “Tim” Timken Jr. is out as president and CEO of Canton-based TimkenSteel Corp. The alloy steel products producer announced Oct. 9

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The 10-story Avenue Tower has been sold for $15 million. Geis Cos. plans to build 31 for-sale condominiums in a new five-story building fronting on East 12th Street north of the existing building. (Stan Bullard)

The University of Akron will open a national search for an executive vice president and provost, doing away with the approach of splitting the duties of the Office of Academic Affairs. The decision was announced Oct. 9, following president Gary L. Miller’s first board of trustees meeting. Trust-

ees at the end of 2017 approved a plan to dissolve the senior vice president and provost role and create the roles of executive VP and chief academic officer and executive VP and chief administrative officer, but that was put on hold during the university’s presidential transition period.

Getting bigger Columbus-based Worthington Industries bought a 278,000-square-foot pickling and slitting facility in Cleveland from Heidtman Steel Products. Worthington, a diversified metals manufacturing company, said Heidtman’s facility includes pickling and slitting of hot-rolled carbon flat-rolled steel for the automotive, heavy truck, agriculture and heavy equipment markets. The non-union facility has about 100 employees.

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