Page 1

VOL. 38, NO. 36

SEPTEMBER 4 - 10, 2017


Source Lunch

City expects to get lift from BOUNCE district.

Rico Pietro, managing partner, Cushman & Wakefield Cresco

Page 24

The List The region’s wealthiest suburbs Page 22


Page 27


Long-term trends revive development pulse on Scranton Peninsula

Scranton Peninsula, the tongue-like land that is shaped by the Cuyahoga River, is expected to be a development hot spot in the coming years. (Photograph by

By STAN BULLARD @CrainRltywriter

After nearly 30 years of waiting, stuck in the 1980s while downtown Cleveland and adjoining Near West Side neighborhoods became home to high-priced rentals and houses, Scranton Peninsula is poised for an

overdue catch-up as a hot spot for real estate development. The sale of 20 acres by Cleveland-based Forest City Realty Trust on the Carter Road side of the tongue-like land shaped by the curving Cuyahoga River to a new group of owners after a 29-year hold does more than put the largely vacant parcel in line for a potential big-league development. It also liberates the other big proper-

Focus: Leadership Leadership Cleveland celebrates 40 years. Page 13 Entire contents © 2017 by Crain Communications Inc.

ty owner on the peninsula, the Scranton Averell Trust, to change its game plan for the other 25 acres, much of it occupied by more than a dozen buildings and a cadre of tenants lining sections of lower Scranton Avenue. Meantime, the maturing Tremont and Ohio City markets have pointed the path of development toward the long-quiet peninsula. Thomas Stickney, president of

Scranton Averell Trust, said that the sale process released it from its plans for a joint venture with Forest City to develop their sites together that’s been in place since 1988. “We were holding everything in short-term leases because Forest City and the city have always had plans for the peninsula,” Stickney said. “It will be easier to find long-term tenants that will fit into (buildings) for a longer period of

time. We will have a nicer looking area because not everything is temporary.” He declined to specify how long the short-term leases were. However, other prospects already are knocking on the door about land controlled by the trust, which traces its ownership of property back more than a century, including a corporate headquarters he refused to identify. SEE SCRANTON, PAGE 26


A new look for former Ramada Universal Windows will build $3.5M space in Bedford Heights By JAY MILLER @JayMiller

The site of a long-vacant hotel in Bedford Heights soon will host a new corporate headquarters, thanks to a team effort by the city and economic development agencies that are injecting a $1 million-plus package of

financial assistance into the deal. The seven-story, 168-room hotel on Rockside Road, a Ramada Inn when it opened in 1970 and later a Red Roof Inn, will be demolished on Wednesday, Sept. 6. It will be replaced by a new, $3.5 million headquarters for Universal Windows Direct, a home improvement firm now based in Oakwood. Universal Windows Direct, which

runs a national network of home improvement contractors, has pledged to bring 80 full-time employees to Bedford Heights and create another 40 full-time jobs there, according to a memorandum of understanding between the company and the city. Company officials did not respond to three requests for comment. SEE UNIVERSAL, PAGE 6

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NEW ERA. NEW AGAIN. CLEVELAND-CLIFFS While we are proud of what we have accomplished in the last three years, Cliffs Natural Resources going forward will be called by its traditional name: Cleveland-Cliffs. For 170 years, we have been the foundation of the North American steel industry, providing the highest quality iron ore to integrated mills. Reinventing the company once again, our expansion into hot briquetted iron (HBI) to serve the electric arc furnace (EAF) steel industry is key to our growth. The future’s bright – we are excited about expanding our reach while continuing to serve our long-term core customers. See what’s new at


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S E P T E M B E R 4 - 10 , 2 017 |


Fisher Phillips back for downtown ‘renaissance’ By STAN BULLARD @CrainRltywriter




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Taking much of the 40th floor of 200 Public Square, the national law firm Fisher Phillips plans to move its Northeast Ohio office to downtown Cleveland from a Broadview Heights suburban office park. Steve Nobil, Fisher Phillips regional managing partner, said the firm wants to be part of the city's downtown renaissance. It’s an outlook the opposite of when the predecessor Millisor & Nobil firm moved 20 years ago to a new building at South Hills Office Park. At the time, the firm needed room in both its then-downtown Cleveland and Akron offices, and it consolidated both in a single Broadview Heights office, centrally located on I-77. “Downtown Cleveland when we left is a whole lot different that it is today,� Nobil said. “We want to be in downtown today because it’s a pretty exciting renaissance, and we think it will help us grow.� The employment law firm hopes the skyline views of the new suite will help attract lateral attorneys and new recruits. The firm has agreed to take space from 200 Public Square owner Harbor Group of Norfolk, Va., that will allow it to accommodate at least five more attorneys. Fisher Phillips is scheduled to occupy its suite, which is currently being renovated, by Nov. 20. The firm will move 25 attorneys and 18 support staffers to the central city. It will occupy 17,000 square feet at the building formerly known as BP Tower, which is 13% larger than its current 15,000 square feet of space. “We’ve grown since our (2011) merger with Fisher Phillips,� Nobil said, noting that the office has added five attorney since then. The practice has reaped benefits, Nobil said, from the national firm’s ability to add onthe-ground representation from its network of 32 offices across the continental United States. However, Nobil said the new office will benefit the firm as much from an improved layout and efficiency as the additional room. The firm’s move coincides with the end of its lease at

The Fisher Phillips law firm will move 25 attorneys and 43 total staffers to the former BP Tower in downtown Cleveland. (David Kordalski)

South Hills, and it’s negotiating to receive “some significant� incentives from the city of Cleveland. He declined to enumerate the aid because it is still under negotiation. The firm also will use its space more efficiently thanks to a “less-paper initiative,� which means it no longer will take space to store closed-case materials, instead keeping them on secure computer servers. Fisher Phillips looked at multiple buildings downtown before landing atop 200 Public Square. Nobil said it opted for the one-time oil company headquarters because of the amenities the building offers, from a fitness center to dining options and parking under its own roof. Russell Rogers, a Colliers International senior vice president, said Fisher Phillips will occupy about three-quarters of 200 Public Square’s 40th floor. Its tenancy will take the 1 million-square-foot building to almost 90% occupancy. A major portion of the remaining vacancy is on two full floors that Colliers, which represents the skyscraper, has available to lease, Rogers said.

That does not count the top floor, which houses the former corporate dining room and executive suite of the building’s original owner and developer. Fisher Phillips is a natural addition to multiple top-tier law firms in the high-rise, Rogers said. Fisher Phillips was represented by the Newmark Knight Frank brokerage through both its Atlanta, where Fisher Phillips leadership is based, and Cleveland offices. Bob Nosal, managing director of Newmark’s Cleveland office, said Fisher Phillips searched multiple downtown buildings before finding the terms and setting it would accept at 200 Public Square. Although there is no new multitenant office development of scale in the southern suburbs, Nosal said there still are more than a half-dozen top-tier buildings that could have accommodated the law firm. Nobil said few non-lawyers appreciate the breadth and complexity of employment law. Matters in such a practice range from labor relations and workplace safety to wage and hour law and temporary staffing.


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Under the deal brokered by Team Northeast Ohio, the regional business development nonprofit, the city of Bedford Heights is selling the building to a group associated with Universal Windows Direct for $100,000. The city will use a $615,000 grant from JobsOhio, the state’s economic development nonprofit, to demolish the building and clean up the site. The city also has agreed to provide Universal Windows Direct with a 12year, 100% real estate tax abatement on the improvements. The Ohio Tax Credit Authority is chipping in with a six-year, 0.974% Job Creation Tax Credit for the project, worth at least $200,000. The hotel closed in 2009, when it was called Red Rock Inn, after it was severely damaged by an electrical fire. It went into receivership before the Cuyahoga County Land Reutilization Corp., the county's land bank, Elizabeth McIntyre Mary Kramer Scott Suttell Tim Magaw David Kordalski Damon Sims Sue Walton Kevin Kleps Stan Bullard Real estate/ construction Reporters Jay Miller, Government Dan Shingler Energy/steel/auto Rachel McCafferty Manufacturing/ energy Jeremy Nobile, Finance Lydia Coutré, Health care Data editor Chuck Soder Cartoonist Rich Williams *** Events manager Ashley Ramsey Events coordinator Megan Lemke Integrated marketing manager Michelle Sustar

gained possession at the end of 2011 and eventually transferred the property to the city of Bedford Heights. Team NEO started working with Bedford Heights two years ago, once the city gained control of the property. Mayor Fletcher Berger said city officials quickly realized that “the value was not in the structure, but in the dirt.” But the city didn’t know how to pay for it without an end user in sight. Her organization agreed, said Stephanie Mercado, a Team NEO senior director of project management at the 14-year-old business attraction and development organization, which acts as an intermediary between businesses looking to grow or relocate, and communities and site owners and the regional partner of JobsOhio. She began working with Bedford Heights about two years ago. “I got a lead that Universal Windows was looking for potential sites (for a new headquarters),” she said. “I thought it would be a great opportunity, and made the introduction between the company and the commu-

Publisher/editor Group publisher Managing editor Sections editor Creative director Web editor Associate editor/Akron Assistant editor Senior reporter

nity. They were unaware of each other.” With an end user attached to the project, the city now met a JobsOhio requirement for a redevelopment grant. Team NEO then led the company and the city through the JobsOhio and then the state tax credit process. Bedford Heights has a strong, traditional economic base. “We are still blessed with traditional manufacturing,” said economic development director Martine DiVitio. Bedford Heights’ major employers are Giant Eagle and steel service centers Olympic Steel Inc. and Majestic Steel USA, DeVitio said. The city believes the redevelopment of the hotel property will eliminate an eyesore and allow for redevelopment of the Rockside Road area as a home to businesses services and light manufacturing. “It obviously has been a great disappointment to us,” Berger said of the site. “Removing this blight from one of our major gateways is imperative to the economic development in that area.”



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S E P T E M B E R 4 - 10 , 2 017


PA G E 7

CSU is pairing athletes with life ‘champs’ By KEVIN KLEPS

At CSU, they can do that, and “take a 10-minute walk downtown to one of these high rises and work an internship, work a summer job.” @KevinKleps

Andrew McCartney has experienced the benefits of mentorship from both perspectives. As a freshman at the Naval Academy, McCartney was paired up with a local family, as all plebes are. The sponsor family became the godparents of McCartney’s oldest daughter. A couple decades later, McCartney — the president and owner of Bowden Manufacturing in Willoughby — became a mentor to Sebastian Douglas, then a guard for the Cleveland State men’s basketball team. McCartney and Douglas remain close to this day, with the former saying his three daughters are the latter’s “surrogate sisters.” “I was exposed to how it can be extremely rewarding for the mentor as well as the person being mentored — the student-athlete,” McCartney said. Thus, when McCartney met Dennis Felton, who was named Cleveland State’s new men’s basketball coach in March, he approached the college hoops veteran about the mentorship program the Vikings had utilized under former coach Gary Waters. That program, McCartney said, was rewarding for him, but it wasn’t as extensive as he would have liked. The idea was a welcomed one for Felton, whose previous head-coach-

An example that hits home



ing job was a six-year run at the University of Georgia. The Athens, Ga., campus, Felton said, didn’t afford his players the same real-life mentoring opportunities as Cleveland State’s does. “We could go to Atlanta, which was an hour away. Well, that’s impossible,” Felton said. “We can’t get to Atlanta every day and do what we’re doing on campus. At Cleveland State, our guys don’t have to make that choice. They can do both.” The 54-year-old Felton is envisioning something special at his third head-coaching stop, and he’s looking well beyond basketball. He’s thinking about summer internships, with players working for their mentors, whom he said will be “highly successful professionals” in a field that’s similar to the player’s future interests. The coach admits that when faced with a dilemma similar to the one at Georgia — with the big city an hourplus commute from campus — basketball always wins. The players stay on campus during the summer, they take classes and they work on their games.

With McCartney — who is the chairman of the athletic department’s visiting committee, which serves as a board of advisers to director of athletics Mike Thomas — leading the charge, CSU developed a Life After Basketball program. The program will kick off this fall with a dinner in which the business leaders who will serve as mentors are introduced to the student-athletes they will advise. How the program goes beyond the Vikings’ previous format, McCartney said, is after the dinner there are four more “designed interactions” during the year — a dinner at the mentor’s house (thus avoiding potential NCAA compliance issues), a tour of his or her workplace, a campus visit with the athlete, and the mentor attending a game, which is followed by a post-event get-together. The Vikings liked the idea so much, in fact, that it grew to include three more teams — women’s basketball and volleyball, and men’s lacrosse. It’s called Champions For Life, and the goal is for an experience similar to what McCartney developed with Douglas. Douglas, a 2014 CSU graduate, is now a financial counselor at The Cole

Eye Institute. He was born in Jamaica, moved to the U.S. when he was 1, grew up in New York and played high school hoops in Houston. “Being from out of town, Andy played a huge part for me,” Douglas said. McCartney invited the then-20year-old to dinner the first time they met, Douglas spent holidays with the entrepreneur’s family (he still does), they held free-throw contests in the driveway and played Call of Duty late at night — forcing McCartney to stay up “past his curfew,” Douglas said. “They’re always checking on me,” said Douglas, now 25. “Amy (McCartney, Andy’s wife) wants to know who’s the woman in my life, is she good for me, am I eating?” Douglas calls the experience “phenomenal,” and is thrilled that his alma mater is making a scaledup version of it available to more athletes. McCartney said CSU is “actively looking” for Northeast Ohio business leaders to serve as mentors. Several have already committed, including Sam Thomas III, principal of Sam Thomas III, Esq. & Associates; Rick Farone, managing partner of Guardian Technologies; and Jerry Cangelosi, president of Nexstep People & Process Solutions.

‘Powerful’ tool The Vikings’ mentorship program isn’t new to collegiate athletics, but Felton believes its struc-

tured nature, combined with the proximity to downtown Cleveland, will help his program on the court, too. “It’s going to be powerful,” Felton said. “And it’s going to be a great recruiting tool because nobody’s doing this. That’s what it’s all about. That’s why they’re here — to put themselves in position to have the kind of opportunities that you want to have after graduating from college.” The post-graduate opportunities that the program can provide are key for Felton. It’s why CSU is calling the mentors “champions.” Ideally, the mentor will help the student-athletes land “real-life summer jobs, internships, real-life experiences in their industry before they graduate,” Felton said. “So starting their freshman year, all throughout their four years with us, they will get that exposure to those kinds of experiences, so they can start building their résumé and start building their professional network before they even finish school here.” One of Douglas’ CSU teammates was Norris Cole, who has played six seasons in the NBA and was part of the Vikings’ former mentorship program. (Cole was paired with former Cavs trainer Max Benton, who has been the Vikings’ associate head athletic trainer since 2014.) When a reporter remarked that there are only so many NBA jobs, Felton said, “That’s right. But we’re working on that, too.”

It’s simple. Trust matters. When shopping for insurance, do you ever consider the financial strength of an insurance company? “An insurance policy is essentially a safety net,” explains Chief Financial Officer Dawn Jaffray of United Fire Group (UFG), a multibillion-dollar insurance company with over $4 billion in assets. “Life is unpredictable and you trust your insurance company to be there at a future point when you might need them.”


With 27 years of industry experience, Jaffray understands how important a balance sheet is in determining a company’s financial strength. “If a company doesn’t have a strong balance sheet—one that can withstand major catastrophes, difficult insurance cycles and financial markets crashing—it might not be able to hold up its end of the contract,” she says.

When evaluating an insurance company, Jaffray offers several financial measures to consider: Q

Third-party rating agencies, such as A.M. Best Company: provide an independent opinion on the financial strength of an insurance company


Risk-based capital: shows the minimum amount of capital that an insurance company is required to have to support its overall business operations


 olicyholder surplus: shows the difference P between a company’s assets and liabilities


 laims reserves: shows the funds set aside for C the future payment of claims that have been incurred but not settled

Whether you are shopping for insurance for your business, home or car, Jaffray encourages you to take the time to do a little research. Visit the company’s website to read its press releases and review its financial facts. You’ll be glad you did when the unexpected happens.

A publicly traded multibillion-dollar company, UFG holds a financial strength rating of “A” (Excellent) from A.M. Best Company. It has a strong consolidated balance sheet and income statement, with over $4 billion in assets, $857 million in statutory surplus and $942 million in revenue.

© UFG 2017. All rights reserved.

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At the Table

Marble Room brings back luster of classic Cleveland It’s easy to traffic in hyperbole, but Marble Room Steaks and Raw Bar is undoubtedly one of the region’s most stunning destinations. The restaurant, which opens Tuesday, Sept. 5, at the historic Garfield Building, 623 Euclid Ave., occupies an extraordinary space. Former home to the National City Bank headquarters, it is classic Joe Cleveland. Crea Built in 1893 by the sons of assassinated U.S. President James Garfield, the space was originally the home to Guardian Bank. It later became Cowell & Hubbard Jewelers, then the English Woolen Co. before National City took over the property during the 1920s. Visually, it’s a jaw-dropper — particularly for anyone unfamiliar with old Cleveland grandeur. Decked in pink marble, the main complex occupies roughly 10,000 square feet of space. Entering the opulent former bank lobby off of Euclid Avenue, guests pass through a small foyer into Marble Room’s lounge area, where a 19-seat bar topped by a glass-encased wine display runs along one side, a handsome raw bar bordering the other. The lounge itself seats 75 and opens into an expansive formal dining room. Massive pillars, topped by ornately carved capitals, rise to the ceilings.

Marble Room Steaks and Raw Bar executive chef Brandon Veres conducts a staff training session with an annotated tasting of key menu offerings. (Peggy Turbett for Crain’s)

The majestic gold-and-blue floral ceiling is punctuated by vast chandeliers. A series of friezes ring the upper limits of the room. Malisse Sinito, president of Millennia Hospitality Group (LockKeepers in Valley View), hosted a preview tour of the space last week. While preserving the bank’s original appointments, latter-day decora-

tive touches were integrated to preserve the building’s timeless quality. Soft fabrics in muted tones and matte-finish wood surfaces lend subtle luster. Oversized globe light fixtures were added “to bring the lighting down to a more human level,” Sinito said. Dramatic draperies in shades of khaki and taupe, hung high near the

40-feet ceilings, drop nearly to the floor. They confer a sense of privacy to the banquettes on either side of the main dining area. A massive, bronze-colored bull stands at the base of the grand staircase that leads up to private meeting and dining rooms. Initially, the property was meant to be home to Jeff Ruby’s Steakhouse, a

Cincinnati-based chain. When that deal fell through, the Millennia organization — which is transforming the historic building into The Garfield, a 123-unit apartment building — reconsidered its options. “This had to be handled perfectly. There was no way we could mess this up,” Sinito said. A luxe steakhouse was the logical format, she added. “What else could you possibly do with a room this beautiful?” she asked, her gaze drifting across the cathedral-like space with its soaring ceilings and expanses of dusty pink stone. “Look at this opulence. In a space like this, anything else would have just been wrong. This is a place just made for a splash.” Of course, these days every new restaurant opening raises the specter of an overbuilt downtown dining scene. Sinito’s said she’s aware of potential cannibalization, but countered by adding that she can only focus on her mission to make the Marble Room a premier destination. “If we’d been setting out to find another place to open, you know, another restaurant, I’d really have to think long and hard about choosing a location downtown,” she said. “But when Frank (her husband, developer Frank Sinito, CEO of the Millennia Cos. and new owners of Key Tower) set his sights on the historic Garfield Building, and then the Jeff Ruby’s deal fell through, it was a done deal.” SEE MARBLE, PAGE 25








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There’s something the matter with Ohio as well By NOAH SMITH Bloomberg View

In the wake of the white supremacist march and the killing of a protester in Charlottesville, Va., my Bloomberg View colleague Tyler Cowen wrote an excellent piece about how the state is a multicultural success story. Economically thriving, Virginia also is home to a large number of immigrants from all over the world. Those who attack that success are putting themselves on the wrong side of history. Virginia, of course, benefits from being close to Washington. Other states, such as New York, California, Texas and Illinois, have succeeded economically because of the wealth of huge, diverse cities like New York City, Chicago and Houston. And many sparsely populated states such as North Dakota are prospering mainly because of large endowments of natural resources. Meanwhile, states with none of these natural advantages, such as North Carolina and Minnesota, are making progress by leveraging higher education and technology clusters. But a few states continue to flounder in the new economic reality. It’s crucial for these states to update their approaches to prosperity. Exhibit No. 1 is Ohio. Ohio’s unemployment rate is only one percentage point higher than the national average. But in recent years, the state has created jobs at a slower pace than the nation as a whole. Worse, Ohioans are getting paid less for the work they do. Hourly earnings were about the same as the national average before the recession, but have lagged since: Many other grim statistics confirm the poor health of Ohio’s economy. The Buckeye State isn’t collapsing, as it did in the early 1980s, but it’s suffering a long, grinding slide into the lower ranks of U.S. states. Meanwhile, Ohio is undergoing social breakdown — it’s at the center of the national opioid epidemic. Why is this happening, and what can be done about it? Neither of these questions can be answered with certainty — no economist knows the whole story of why regions boom and decline. But there are some big things Ohio should be doing differently. First, Ohio is part of the Rust Belt — the swath of the Midwest and Northeast that relied on manufacturing, and which has declined as heavy industry’s role in the economy has shrunk. As University of California-Berkeley economist Enrico Moretti has shown, places that rely on old-line manufacturing have suffered economically and socially in recent decades, while centers of the knowledge-based economy — big cities, tech hubs and college towns — have thrived. Ohio Gov. John Kasich has worked to change the state’s reputation, declaring his intent to remake the state as part of the “Knowledge Belt.” But that’s going to be hard to do without getting more actual knowledge. According to U.S. Census Bureau estimates, Ohio ranks 37th in terms of the percent of residents with bachelor’s degrees, and 30th in terms of advanced degrees. The state has no flagship public university system to rival the University of Michigan, University of Illinois or University of Wisconsin systems. The state provides comparatively little funding for poor residents to attend college, suggesting a lack of commitment to higher education. Nor is Ohio getting sufficient talent

Uh-Oh in Ohio Indexed changes in nonfarm payrolls* US



*June 2009 = 100


100 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Source: Federal Reserve Bloomberg View Bank of St. Louis

from overseas. International students fill U.S. graduate schools, immigrant workers staff U.S. tech companies, and the foreign-born start much more than their share of businesses. But when it comes to immi-



grants, Ohio is a laggard. Of the eight cities with the lowest foreign-born share of population (of the 109 cities measured by the Census Bureau in 2009), four — Akron, Cleveland, Cincinnati and Toledo — are in Ohio. In terms of diversity, too, Ohio stands out for resisting recent demographic trends. In 2013, Ohio’s population was only 1.9% Asian, compared with 5.1% in Illinois, 4.7% in Minnesota, 6.1% in Virginia and 3.1% in Pennsylvania. Its Hispanic population percentage is also among the lowest in the nation. It isn’t clear that diversity causes economic growth (though immigration is certainly important). What’s clear is that when a state succeeds economically, it attracts people of

many backgrounds, including new immigrant groups such as Asians and Hispanics. The big cities, tech hubs and college towns that are the engines of prosperity in modern America are, by their very nature, diverse places. A state that has difficulty accepting diversity limits its chances of becoming more prosperous. This is a risk for Ohio. If the state doesn’t do more to appeal to immigrants, fails to adapt to diversity, and allows higher education to lag, the state will never climb out of the doldrums it sank into during the days of the Rust Belt. It will continue to stagger along, nostalgic for the age of old-line manufacturing and slipping down the national economic rankings even as cultural decay takes hold. The state’s


strong support for Donald Trump, with his angry anti-immigrant rhetoric and unattainable promises to bring back the vanished days of the old economy, isn’t an encouraging sign. There are, however, some glimmers of hope. In Akron, a small but rapidly increasing flow of immigrants is helping to revitalize the local economy. And Columbus, a relatively diverse city that is home to Ohio State University, is bucking statewide trends with booming employment, increasing population and rising wages. Ohio is therefore at a critical fork. It can wallow in angry visions of the past, or it can try to follow the Columbus model and lift itself into the ranks of American success stories. The choice should be obvious.



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Opinion Web Talk Re: Aftermath of the failed Quicken Loans Arena deal What an absolute shame. The Cavs have brought so much attention, pleasure and economic stimulus to this city, and to treat them this way is a disgrace. How we could not want to let more citizens enjoy the games by being “in the arena” and also creating an atmosphere that is more in line with other major cities is outrageous. It just goes to show that people in this city get jealous of success and will try to do ridiculous things to impede their continued growth. — Love the Cavs Now, how is it OK to give millions to a literal billionaire with no strings attached? If Dan Gilbert wanted to make these renovations, he could do so without breaking a sweat. And why he balks at agreeing to some community investment in return for the city’s investment in HIS property is insane. — M Rife Let’s see: Why don’t we all interfere in progress and then end up with nothing? There is no victory here. But watching other communities laugh at us should at least provide some entertainment value. — Howard Thompson What does progress have to do with coughing up $40 million from taxpayers sentenced to live in a city with lousy schools and insufficient police protection, for the benefit of millionaires to play a kids game? Let LeBron or Gilbert pay for it. Or raise the price of tickets. Oh, the multimillionaires and the fans don’t want to pay for it? So be it. ... Maybe the Cavs should just buy the arena. Then they could just keep the 8% admissions tax, charge whatever they want and construct additions to their heart’s content with the money they earn. — Bob Fritz


All in? Not yet. When the proposed renovations to Quicken Loans Arena were rolled out late last year on and at a flashy press conference, the word “proposed” seemed like just a technicality. The public officials ultimately responsible for signing off on the deal, for the most part, had already signaled support for the $140 million makeover — a much-needed one, we argued at the time — that would split the cost between taxpayers and the Cavaliers organization. All that was left were a few legislative machinations, and dirt would start flying during the Cavaliers’ offseason. That was until a coalition of local religious and civic groups tirelessly advocated against the deal. We, too, expressed concern over the initial proposal as an all-too-generous subsidy for the Cavaliers and the team’s majority owner, Dan Gilbert. But as negotiations pressed on, we felt moderately better after Gilbert’s team threw in a few deal sweeteners. Among them, for every dollar of admissions taxes to arena events that went to debt service for the bonds that pay for the expansion, the city’s general fund would get an equal amount. The Cavs also agreed to resurface the basketball courts at all Cleveland recreation centers and schools. It seemed as sweet as the deal was going to get, and the coalition’s plan to garner enough signatures to put the measure before voters seemed like a tall task given the united front of the city’s most powerful political figures and corporate interests. Again, a scrappy coalition of community activists — with some outside assistance — proved us wrong. Ultimately fearing rejection at the ballot box and a shifting business climate, the Cavaliers last week seemingly killed the plans. It was disappointing to see a worthwhile project go up in smoke, but if there’s one lesson we’ve learned, it’s that the same sort of deals that worked 25 years ago won’t work in the Cleveland of today. Public skepticism toward using tax dollars to build, maintain and improve sports facilities is at an all-time high.

Political and corporate interests working in concert behind the scenes is not enough to bring something to the finish line — especially when finite public dollars are involved. Earnest public discourse shouldn’t only take place once a deal’s main pillars have been agreed upon by elected leaders. Using public dollars for arenas and stadiums is a road well-traveled in this country, and trying to drain the funding swamp in which we’ve found ourselves is nearly impossible. And it’s worth noting The Q deal was a much better one than others that have been reached elsewhere. So, is The Q bound to fall into disrepair and ultimately be abandoned once Gilbert moves the team out of Cleveland? No. The Cavs have been invested heavily in the upkeep of the arena, and the talk of the team leaving town by various proponents of the deal was simply bluster. Gilbert confirmed as much in a tweet last week vowing never to move the team from Cleveland. If you will, call us naive, but we don’t see Gilbert taking a page from the Art Modell playbook. Late last week, though, The Q plan appeared to have a pulse. The Greater Cleveland Congregations said it would withdraw the petitions that would have triggered the referendum following an apparent deal with the county that would create at least two mental health and substance abuse centers as part of the plan. It’s unclear as of Crain’s deadline last Friday whether Gilbert & Co. will come back to the table, but Cavs CEO Len Komoroski said the organization was “very encouraged by this new development.” The Q transformation is a worthwhile project, and so is the continued investment in Cleveland’s neighborhoods. The deal as it stands is a better one for the city and its residents than what was originally proposed last winter. We are hopeful negotiations continue to move in the right direction and that the Cuyahoga County Progressive Caucus doesn’t attempt to sabotage the effort simply to boost the electoral chances of its preferred mayoral candidate, Jeff Johnson.


The campaign against the Q deal and the resulting collapse of the deal is a shot across the bow of how economic development has taken place in Cleveland since the 1980s. Economic development in post-Kucinich Cleveland has been strictly from the top down with the Greater Cleveland Partnership, developers and other tycoons calling all the shots and setting the priorities. The political powers have acted as salesmen for the newest deal, which was sold as essential to the continuation of civilized life in Cleveland. The residents of Cleveland only had a role as a cheering section for the latest display of technocratic virtuosity by economic development whiz kids. The cheering section has quit cheering, and now things are going to have to change. Interests who have always gotten their way are not going to like this, but they’d better get used to it. — Randino49 Isn’t this where a mayor would have come in and kept sides talking? A public/private, 50/50 split of $140 million sure sounds small compared to these other, bigger deals that have been consummated. ... It’s pathetic and distressing this couldn’t get done. — pjj16


Publisher and Editor: Elizabeth McIntyre (


This is a shame for the city of Cleveland. In the end,the Cavs would have contributed by funding 100 Habitat for Humanity homes in Cleveland. Kids in Cleveland would have basketball courts to play on instead of the streets and unusable courts. Also, partial taxes would have come through bed taxes from the local hotels. The biggest loser is the Cavs may not extend their lease with the city. Be prepared when the Cavs say they have someone courting them with a bigger, better offer. My guess is some people don’t remember the days when the Browns ruled this town and everyone said Art Modell would never leave. Think again. If we don’t work with those who have invested so much in our city, why should they stay? — Diane Knaser-Forsyth

Managing Editor:

Scott Suttell (

Sections Editor:

Timothy Magaw (

Contact Crain’s:


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 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 Please include a telephone number for verification purposes.



S E P T E M B E R 4 - 10 , 2 017





As the Cavaliers rightly noted in the press release announcing the organization’s decision to back off the plan, The Q is the oldest arena in the NBA without a major structural renovation. And, of course, upgrading this well-maintained facility would be far more cost-effective than starting from scratch. On the front end of these negotiations, though, it seemed as if the hubris of local civic and business leaders got the best of them and they were never quite able to catch up. And ultimately, it was a collective of concerned citizens — yes, with some outside muscle, as is typical in virtually every political campaign — who felt disconnected from the leaders they helped elect who forced the Cavaliers to put on the brakes. Cleveland has seen a tremendous amount of growth in terms of

A rendering of the plan for a renovated Quicken Loans Arena. (File)

economic development and civic pride over the last few years. And as they should be, growing pains are part of that process.

Along the way, though, a few more Clevelanders realized that their voices matter — and that can’t be overlooked.

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thank you!

On Thursday, Aug. 17, Crain’s Cleveland Business, in partnership with Howard and O’Brien Executive Search, welcomed over 400 attendees to the 7th annual Archer Awards, which celebrated the region’s human resources champions. We want to again congratulate this year’s 2017 finalists and winners. We also want to thank all of our event sponsors and all of those who were involved in making this event such a success.





Crain’s Archer Awards are a product of:

For more post event information: visit



With its 40th class in tow, Leadership Cleveland doesn’t plan to slow down

Lifting local leaders By JEREMY NOBILE @JeremyNobile


or Roz Quarto, a graduate of Leadership Cleveland’s 2015 class, an interaction with inmates at the Cuyahoga County Jail, which was part of the civic-minded program, was one of many that she says “rocked my world.” Quarto, a lawyer from New York, was part of a selection committee for the 2014 Gay Games. A little before then, she closed her practice and moved to Cleveland with her wife, who helped her learn about programs offered through the Cleveland Leadership Center for people new to the area. Having worked with homeless and neighborhood development in New York, she was highly motivated to become similarly engaged with her new community in Northeast Ohio. SEE CENTER, PAGE 20

Illustration by Daniel Zacroczemski for Crain’s


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Displaying leadership for our veterans Outstanding Veteran of the Year leads fundraising charge for local VA hospital By MARK OPREA

Earlier this year, a large slice of Northeast Ohio’s war veterans, from Korean War octogenarians to Vietnam era infantrymen, gathered at an Embassy Suites in Independence for the Joint Veterans Council of Cuyahoga County’s 92nd annual anniversary dinner. The agenda was clear: Celebrate the war-worn, living and deceased. Service anthems were sung to syncopated clapping. Adorned Air Force sergeants paired with Naval officers to face the colors. A man shouts, “If that don’t get your patriotic spirit moving, then I don’t know what will.” Yet, the council’s aim wasn’t solely of past praise. Hundreds grouped to tackle a serious conundrum surrounding vets in recovery: Iraq and Afghanistan soldiers returning home injured, and staying at the local veterans hospital, are often distant from families nearby, a preface, experts say, that could actually negatively affect the healing process. “Soldiers aren’t comfortable going to war,” Maj. Gen. Margaret Wilmoth said, “if they don’t know their families will be taken care of.” After accepting the council’s Outstanding Veteran of the Year Award, Tom Sweeney, a 71-year-old “threestriped grunt” from the Vietnam War, delivered a solution to the recovery problem: He and a team of two others — a computer systems sales director named Doug Harvey and a former Naval officer named Rick DeChant — recently secured $9 million, via fundraising and matched federal grants, in sum to build two Fisher Houses, “Ronald McDonald homes” for vets’ families, in Cleveland. When open next fall, they will be the first of their kind on the Louis Stokes Cleveland VA Medical Center property near University Circle. In a heartfelt speech, Sweeney said vets go through ineffable horror only to still find readjusting to civilian life near impossible. He pauses to look over at his sons. He turns to the crowd. “HUA!” Sweeney shouted. The room echoes the chant. He clarified, “Heard. Understood. Acknowledged. HUA!” Again, vets answer. “A veteran needs to hear,” Sweeney said, “‘We’ve got your back, soldier.’ We understand your care and care of your family. We firmly acknowledge your service and sacrifice.’”

Mission accepted Five decades before Sweeney became the president of the foundation that would raise millions of dollars to construct two Fisher Houses in Cleveland, he fought in a controversial war as a sergeant within the 11th Brigade, Americal Division. As a 22-year-old raised in a military family, Sweeney rode helicopters over the jungles of Vietcong as he dodged machine gun fire. He lost friends, slept on sandbags, endured artillery fire five days a week. Though Sweeney speaks rarely in detail of his wartime years — which earned him a Bronze Star — he’s unafraid to capture its severity in brief. “Every war sucks,” he said. “Plain

and simple. It’s cruel. It’s arbitrary. Only the truly lucky ones come out of combat. It’s a special experience, I can tell you that.” After a two-decade career as a deep-voiced news anchor for Baltimore’s WMAR and, later, Cleveland’s WKYC Channel 3, Sweeney retired in 1992 to care for his boys, Tuck and Connor. Come 2011, Sweeney was asked by Susan Fuehrer, the director of the Louis Stokes Cleveland VA, to spearhead a special team to raise funds for the first Fisher House suites in the area. Sweeney was taken aback: He’d never heard of the concept. “I had no idea what the hell she was talking about,” he said. “Why would I? They weren’t around when I was in uniform.” Although the first Fisher House opened up 25 years ago at the Walter Reed National Military Medical Center in Bethesda, Md., the push for improved psychiatric care for returning vets has long been a conundrum in the United States. “Shell shocked” soldiers who survived mortar shrapnel in World War I were occasionally sent back into combat if their disorder was deemed “nervous” — an emotional collapse — and not a physical wound. By the time President Richard Nixon had resigned, psychiatrists were just starting to analyze Vietnam vets for signs of physically manifested trauma, though it would take another decade for the American Psychiatric Association to add “post-traumatic stress disorder” to the “Diagnostic and Statistical Manual of Mental Disorders,” in 1980. Soldiers were finally being understood. Yet, still, there was an entity widely left out of DSM mental diagnoses: their families. In 1990, while the VA was starting to treat polytrauma via the neurologically focused Eye Movement Desensitization and Reprocessing treatment, Zachary Fisher, an 80-year-old owner of the Intrepid Sea, Air and Space Museum, shifted gears to found an organization of military “comfort homes,” all under the belief that “a family’s love is the best medicine.” (Vets families were also, Fisher noticed, sleeping on VA couches.) Seventy-two Fisher Houses would pop up globally, though not in Cleveland. Most today are near military bases and VA medical centers, and operate as state-of-the-art, 16-suite hotels fashioned with modern-designed interiors, full kitchens, play rooms and lasagna dinners. “It’s a holistic approach to reintegration,” said Dr. Joseph Baskin, a psychiatrist at the Cleveland Clinic who worked for the Louis Stokes Cleveland VA for 12 years. “But it’s certainly not a one-size-fits-all. I’m sure there are some people who might be better off apart, who don’t want to impose on their families.”

‘A sleeping bear that lives inside’ The question for most families dealing with husbands, wives or children with PTSD is often one of proximity: How close should I really be when I need to be there? Its unpredictability — the flashbacks, night-



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mares, panic attacks — is due to damage to the limbic brain, the part that houses the fight-or-flight response, which can lead to random combat reactions. Soldiers Sweeney isolate themselves in backlash. Family members wretch with misunderstandings. PTSD becomes a shared entity. This complexity hit Lenora Sue Yocum from Mentor after her son Justin Kalenits, a soldier in the 173rd Airborne, was critically injured in an ambush in Afghanistan in 2007. Yocum got the call, and flew immediately to the American base in Landstuhl, Germany, to find Justin in shock. He would later be diagnosed with PTSD and a “unique brain injury.” Thinking she was going to stay in a nearby hotel, Yocum was relieved when officials provided her a bed at Landstuhl’s Fisher House, where she could “walk into my son’s room anytime at night.” Yocum, distraught and alone, found her own support from like residents. “The other mothers?” she said. “We just held and hugged each other. Even today, we still communicate: ‘Been there, done that. You’ll get through it’ — stuff like that. And we still support each other’s kids.” Although the Fisher House is open to everyone coping with the entire spectrum of injury, Yocum’s experience is one Fuehrer and Sweeney anticipate families having at Cleveland’s, especially one with shared trauma. And, in turn their soldiers — from fresh Iraq infantrymen to aging Vietnam grunts. Just two years into fundraising with the Greater Cleveland Fisher House Foundation, countless meetings with Fuehrer, attending baseball games, potlucks and Harley bike clubs, Sweeney walked into the VA for the first time as a patient. “I have PTSD,” he said. “I didn’t even register a call for help for 43 years. I described it to a psychologist

as a ‘sleeping bear that lives inside me.’ I said, ‘I don’t want him awakened.’” Sweeney paused, then added, “Really. The longer I pursued the Fisher House, the more I thought: I really do have a problem.” Though Sweeney is out of his months-long treatment today, he fears that future vets staying at the VA might not be so open to acknowledging their trauma with families close by. “But they have it,” Sweeney said. “If you’re in combat, it’s a given. That has to be the presumption.”

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‘Something you can’t put a value on’ On the morning of June 30, Fuehrer was joined by Mayor Frank Jackson, Cleveland Councilman Kevin Conwell and Doug Harvey on a grass lot across from an urban garden two blocks north of the Louis Stokes Cleveland VA. Gus Frangos, the head of the Cleveland Land Bank, officially handed over the deed, shaking hands with Fuehrer. The five reps reveal a 10-foot-tall sign that reads “The Future Home of Two Fisher Houses.” After his speech, in a presidential suit and a striped tie, Harvey is asked how it feels now that his board’s mission is finally over. “It’s one step,” he said. “Now we actually have to move soil.” The two houses themselves, which will be located two blocks north of the VA on East 105th Street, will begin the build process, Sweeney hopes, on Veterans Day this year. They’ll have double the kitchen space as regular base-situated homes, all determined as necessary, Harvey said, by corporate census reads. By next fall, the suites will most likely be filled with patriotic decor, donated goods — and by visiting mothers and fathers. Persons, Sweeney knows, that will be better treated than in past generations, along with their soldiers. “The kiss of a mother? The hug of a father?” he said. “That’s something you just can’t put a value on.”

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LEADERSHIP Meet the Leadership Cleveland class of 2018 Dione Alexander

President, Village Capital Corp. Cleveland Neighborhood Progress

Oren Baratz

Senior vice president for external affairs Jewish Federation of Cleveland

John Beer

Chris Blake

Partner; co-chair, Corporate Transactions Group; co-chair, International Practice Group Hahn Loeser and Parks LLP

Tanisha Briley

City manager City of Cleveland Heights

Managing director wealth management, senior vice president PNC

Rick Bryan

Dan Berick

Denise Carkhuff

Americas chair,Global Corporate Practice Squire Patton Boggs (US) LLP

Fran Bisselle

Head of school Hathaway Brown School

Daniel Blain

Vice president for advancement; president of the Northeast Ohio Medical University (NEOMED) Foundation NEOMED

Headmaster University School Partner Jones Day

Connie Clore

Chief operating officer Asurint

Fred Collier

Matt Elsesser

James Graham

Dave Dabrowski

Bonnie Entler

Andre Gremillet

Deborah Enty

Robyn Hahn

Director City of Cleveland Planning Commission Field representative Ohio-Kentucky Administrative District Council of the International Union of Bricklayers & Allied Craftworkers

Giovanni Di Censo

Office tax managing principal Deloitte

Nikki DiFilippo President and chief marketing officer Via Vera Group

Jamie Cole

Brennan Donnellan

Odell Coleman

Douglas Dykes

Vice president Adcom

Managing partner and owner ColemanWick

News director WKYC-TV

Chief talent officer Cuyahoga County Government

Senior vice president of development operations Forest City Realty Trust Executive director Seeds of Literacy

Executive vice president, chief legal officer and secretary Cliffs Natural Resources Inc. Executive director The Cleveland Orchestra

Chief operating officer Eliza Bryant Village

Chief marketing officer, group marketing and corporate communications leader Westfield Insurance

Kathy Futey

Owner and founder Leopold Advisors LLC

Suzanne Hamilton

Carolyn Gaiter

Chief operating officer Cuyahoga Metropolitan Housing Authority

Vice president, commercial real estate First Federal Lakewood

Maureen Harper

Vice president, government and public affairs Falls Communications

Patrick Gareau

President and CEO Catholic Charities, Diocese of Cleveland

Paul Hogle

President and CEO Cleveland Institute of Music

Pam Gill

CEO and president Recovery Resources

Thank you to all who helped make this year’s event a great success! Proceeds to benefit Recovery Resources prevention, treatment, and recovery programs.


Speech Therapy at Home! tŝƚŚũƵƐƚĂŚŝŐŚƐƉĞĞĚŝŶƚĞƌŶĞƚĐŽŶŶĞĐƟŽŶĂŶĚĂǁĞď camera, your child can receive specialized services from a ĐĞƌƟĮĞĚƐƉĞĞĐŚůĂŶŐƵĂŐĞƉĂƚŚŽůŽŐŝƐƚĨƌŽŵƚŚĞůĞǀĞůĂŶĚ ,ĞĂƌŝŶŐΘ^ƉĞĞĐŚĞŶƚĞƌŝŶƚŚĞĐŽŵĨŽƌƚƉƌŝǀĂĐLJĂŶĚ ĐŽŶǀĞŶŝĞŶĐĞŽĨLJŽƵƌŽǁŶŚŽŵЁ Address issues such as:


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LEADERSHIP Mary Beth Holdford

Jeanne Leinbach

Division manager, external communications ArcelorMittal

Heath Monesmith

Rector St. Paul’s Episcopal Church

Executive vice president and general counsel Eaton Corp

Mike Malley

Kirsten Holzheimer Gail

Ellen Moreau

Chairman Malley’s Chocolates

Mayor City of Euclid

Senior vice president, marketing communications The Sherwin-Williams Co.

Amy Martin

Donna Imhoff

Senior partner, marketing JumpStart Inc.

Campus president, Western Campus Cuyahoga Community College

Jennifer Neundorfer

Kerry McCormack

Colette Jones

Vice president of marketing Destination Cleveland

Cleveland city councilman, Ward 3 City of Cleveland

David Kempton

Linda McHugh

President, Ohio Arthur J. Gallagher & Co.

Megan Kim

Managing vice president, membership development and marketing Greater Cleveland Partnership

John Kish

Tom McNair

Executive director Ohio City Inc.

Mark Meder

Northern Ohio’s Premier Air Charter Service

Kaye Ridolfi

Michael Stern

Kyle Rose

Beth Sweeney

Senior vice president of advancement The Cleveland Foundation

Co-founder Flashstarts Inc.

Jeffrey Nicholson

Becky Ruppert McMahon

President, CBIZ Financial Services CBIZ Inc. Senior vice president and chief of staff The MetroHealth System President Ratliff & Taylor

Terry Szmagala Jr.

Executive director Cleveland Metropolitan Bar Association

Senior vice president, public and community affairs and corporate communications Eaton Corp.

Executive vice president of KeyBanc Capital Markets; co-head of Key Corporate Bank KeyCorp

Eleace Sawyers

Jenn Vergilii

Michelle Pierre-Farid

Vice president and general manager WOIO-TV

Randy Paine

Chief academic officer Cleveland Metropolitan School District

Senior vice president Federal Reserve Bank of Cleveland

Executive vice president and chief information officer Medical Mutual Of Ohio

Chris Spurio

Managing partner Kohrman Jackson & Krantz

Vice president, corporate communications PolyOne Corp.

Senior vice president Aon Risk Solutions

Chief human resources officer Cleveland Clinic

Jon Pinney

President and CEO Care Alliance Health Center

Erik Schrader

David Shimotakahara

Co-chair, corporate and capital markets Calfee, Halter & Griswold LLP

Cindy Zelis

Vice president, clinical integration University Hospitals Cleveland

Executive artistic director GroundWorks DanceTheater



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Q&A: Christopher L. Mapes Chairman and CEO, Lincoln Electric

When Christopher L. Mapes left his family farm in Indiana and went to college, he thought he wanted to be a lawyer. And he was on that path when he did a summer internship with General Motors. The company offered to put him through law school, and he ended up working for the automaker for years. But when Mapes left, he realized law wasn’t his true passion, and he went on to spend his entire career in industrial manufacturing. That brought him to the board of Euclid-based welding products maker Lincoln Electric Holdings Inc. in 2010. Mapes, who became chief operating officer in 2011 and then president and CEO in late 2012, values the company’s foundational culture and strives to maintain connections with its employees, regardless of location or level. Crain’s recently chatted with Mapes about his leadership style and what it takes to run a multibillion-dollar company. This interview has been edited for length and clarity. — Rachel Abbey McCafferty What is it that attracted you to Lincoln Electric? First of all, Lincoln has had a longstanding reputation in the industrial marketplace for the way it thinks about its business and the way it manages its brand and presents itself in the marketplace. It’s a global leader in the marketplace. And the fact that, quite frankly, much of our business around the world still thinks about our foundational culture of living by the golden rule, which is just

simply treating people as we’d like to be treated. I think sometimes, many of the elements of the CEO role are overblown. There might be a desire from individuals to make it appear even more complex than it is. And there are many things about it that can be managed very well with some of those simple foundational principles. And Lincoln really embodies that, and that’s certainly one of the things that drew me toward the opportunity.

“[I]t’s one thing to talk about your strategy or get your strategy down on PowerPoint. It’s a whole other thing to get your organization engaged in the strategy. And that requires our leadership team to be able to dedicate time toward our employees and toward our customers and our stakeholders and sharing with them the vision and the passion we have for executing on that strategy.”

role that I share here at Lincoln Electric with all of our executives is ensuring that our global organization understands that as much as we are going to work very hard every day, we are going to operate our company with a level of integrity. And that there is not an order, there is not a transaction, there is not a conversation that is worth us sacrificing that for the long-term of the company.

Tell me about how you help create and guide the strategy of the company. I would view that as one of my primary responsibilities for the organization because it’s one thing to talk about your strategy or get your strategy down on PowerPoint. It’s a whole other thing to get your organization engaged in the strategy. And that requires our leadership team to be able to dedicate time toward our employees and toward our customers and our stakeholders and sharing with them the vision and the passion we have for executing on that strategy. That’s one of the reasons why I travel probably 50% to 60% of the time. We have — with the recent Air Liquide Welding acquisition in Europe, about a $400 million acquisition — 60, 65 facilities around the world. And it’s important for those facilities to see the leadership team and hear from the leadership team

It seems like engaging employees is something that’s very important to you. I don’t believe that employees that aren’t engaged and understanding our strategy and where we’re trying to drive the company can effectively come in and do their best every day for the organization. So why would we not want to educate, support and inform them, so that they can assist us in driving this strategy that we have for Lincoln Electric on a global basis? I fundamentally believe that people want to be successful. People want to be good at what they’re doing. And once you have that fundamental belief in people, I think it’s very easy to invest the time and the engagement and invest the time in sharing with them your passion and desires and where we want to take the strategy of the company.

about what we’re doing to drive the strategy of the organization. And to make sure they see our confidence in our ability to not only trust them and support them but invest in them for us to be successful. You said overseeing strategy is one of your primary responsibilities. What would you say are the others? I think one of the key responsibilities that I have is ensuring that we’re continuing to develop our talent and getting those individuals in the right role. And ensuring that as we’re looking at our talent across our broad organization that I’m not only trying to find the individual that can be best for those roles, but ensuring that we’re providing them with the experiences and the background and the capabilities so that they can be successful. And the other very important component of the

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LEADERSHIP Adviser: Linda Bluso What are some of the most important qualities for a leader to possess and how do you try to embody those? Well, I think it’s very important for a leader to be accessible. I would hope that people would see that I don’t see myself any different than the individual who’s across the hallway that’s working in our international sales department or the individual who’s running our Australian business. I just don’t think that we are. We have different responsibilities, we have different roles within the organization but each of us is coming in and trying to do our best every day for the company. But I think it’s important for leaders to see that. I believe it can be a risk, that the office can become bigger than the individual. And I never want to be that type of leader. What advice would you give to someone who is looking to become a leader? My advice to them would be don’t aspire toward a role. Aspire toward continuing to advance your capabilities and your competencies in working with people and collaborating and team-building. Let’s think about continuing to advance our capabilities and skill sets, and do the best that you can at that each day. And if you’re doing that, then your definition of success should be achieved.

Collaborative and adaptive leaders can pave way for teams to drive solutions Everyone talks about collaborative leadership. What does that mean? The road to achieving something together can be fraught with potholes, speed bumps, detours and even bad directions from your GPS. Despite what might be good intentions, oftentimes it is the leader who creates an obstacle course of detours, speed bumps and counterproductive directions for the team. Regardless of whether it’s one’s belief of self-importance or different agendas, these obstacles can trip us up. Collaborative leaders with an adaptive leadership style exhibit behaviors which engage creativity, critical thinking and an employee’s sense of ownership. Here are six behaviors of collaborative leaders: 1. Resisting ego: Collaboration is about leveraging the collective power of one or more people or entities to achieve a common goal. It is the power of “we,” not “I.” Resist the tendency of showing everyone you are the smartest person in the room. If you have all the answers, then why are you assembling the team? You hired smart people who are capable.

Bluso is the CEO and founder of Adaptive Knowledge Institute, which assists family businesses with leadership transition planning and leadership development.

Give them a chance to show you. After convening the team and explaining the issue, project and goals, stop talking. You’ve built the guardrails, so now let them begin their work. 2. Sharing information and resources proactively: The collaborative leader shares the vision and mission in a clear and passionate way to engage and energize the team. The collaborative leader knows that asking the right questions can ignite creative thinking. Some questions should be open-ended and others may be pointed. Instill a mindset of open idea generation and sharing which will promote greater creativity

and innovation. Proactively providing resources versus the team having to beg for them demonstrates your commitment to the process. 3. Permitting failure without punishment: There will be failures in any collaboration. If the team knows that failing is permissible (early and fast, hopefully) without reprimands and punishment, the team will learn from failure and come up with better, more innovative solutions. A consistent pattern of predictable behavior — failure without punishment — creates a trusting environment. Even if an organization lacks an overall positive attitude about failure (shame on them), giving the team permission and protection from punishment creates trust and respect. 4. Being a curious facilitator: A collaborative leader leads by facilitation and asking the right questions to engage, motivate and inspire today’s talent. After launching the project, a couple of great questions to ask when checking in with the team are “What are your ideas?” and “How can I be helpful?” Then listen carefully.

5. Fearlessly sharing the power and the glory: As they say, there is no “I” in “team.” A collaborative leader is unconcerned about losing control or power. Releasing insecurities, a collaborative leader realizes how shared control and power can be impactful in achieving something with a group, and allows for more responsibility and accountability. A collaborative leader proudly gives credit to the team for its work, realizing that it is too easy to lose top talent or the trust of the team when a leader high jacks the team’s ideas or the results. Teams need to be given due acknowledgment and recognition for their work. 6. Watching for the team’s energy fluctuations: Group energy is real. A collaborative leader is able to read a group’s positive and negative energy and identify root causes in order to sustain the positive, or minimize the negative energy. A true, collaborative leadership style requires authentic leadership, transparent decision-making, the skills of mediation, influencing and engaging others, and patience. It is about focus on achievement of the common goal.

TECH + COMMUNITY SERVICE + FLEXIBILITY + + FREE SMARTPHONE = WINNER WINNER Any way you slice it, a career at OEC adds up to awesome. As one of the top five tech companies in Northeast Ohio, we offer innovative work, genuine balance and a lively culture. Not to mention free birthday lunches (you could actually get a chicken dinner!) Visit to learn more.


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Through LC — the leadership development and civic education program now housed alongside other similar programs at the CLC — Quarto fast-tracked her path to community service here. But that session at the jail, which was part of the 10-month-long LC program, really resonated with her. Quarto, now the executive director for Cleveland’s Empowering and Strengthening Ohio’s People, a nonprofit housing and financial counseling agency, met with pregnant inmates at the jail to hear about their issues and concerns. It was among a slew of other sessions, which included poverty simulations and seminars on community development issues. “I think it changed a lot of people’s world views,” said Quarto of the LC seminars, who represented nonprofits on an economic development team in her class. For Quarto — and others among the nearly 2,300 LC alumni — it cemented not only her commitment to the nonprofit sector here, but her identity as a Clevelander.

Broadening horizons LC has a long history in Northeast Ohio’s civic fabric and business community. The program has been around for decades, launching its 40th class, with 65 participants, this month. The

first class graduated in 1978. The CLC itself formed in 2006 with the combination of four programs, including LC and Cleveland Bridge Builders. The CLC now offers six programs in total, each with a mission of education and civic engagement targeting people at different stages of their lives and careers from teenage students to mid- and senior-level professionals to retirees. “The original vision, and continuing vision, is to create this continuum of leadership offerings from high school to hip replacement,” said CLC president and CEO Marianne Crosley. “We all have to work collaboratively if we’re going to make a difference. And that’s really why all of this was formed.” LC is arguably the flagship program of the CLC. It targets senior-level workers in virtually all disciplines, from public and private sectors to government and nonprofits. It’s a collaborative place where corporate bankers, food bankers and land bankers can come together to address community issues. The overall goal is to foster a network among influential citizens, hone their leadership acumen and arm them not only with a hunger for civic engagement, but with a sense of how to address community-wide issues. In that sense, over 40 years, the mission of the LC really hasn’t changed, said Bruce Akers, president of the LC’s inaugural class and former Pepper Pike mayor. Akers said an overarching theme of that first class was addressing racial divisive-

Leadership Cleveland by the numbers


members in the inaugural class of 1978


members in the 40th anniversary class of 2018

2,287 alumni


— Roz Quarto, 2015 Leadership Cleveland graduate

LC alumni have completed at least one other CLC program


percentage of all CLC program alumni who are Leadership Cleveland alumni

Class of 2018 diversity

1,000+ organizations with alumni


55% for-profit



community/ nonprofit




We are honored

“At the end of Leadership Cleveland, I learned about the nuance in understanding how Cleveland works and found my commitment to, while I’m living here, making Cleveland a better place than I found it. I’m most certainly a better leader because of it. And underlying it all, it made me a Clevelander.”




8% health

ness among Cleveland suburbs and population loss. “If anything, it exposed me to some aspects of the cities I didn’t appreciate as much at the time,” Akers said. “It broadened my horizons.” It did the same for Quarto. Quarto’s subgroup, which included MetroHealth CEO Akram Boutros, listened to complaints about maternity care at the county jail, particularly as it related to the nurses. At the time, MetroHealth only provided physicians, nurse practitioners and physician-assistant services, so the nurses in question didn’t actually work for the hospital. Since then, however, MetroHealth has taken control of overall health care services at the jail. At the time of the visit, though, it wasn’t immediately obvious the inmates were talking to the head of a hospital with considerable control over those services. “(Boutros) said here is who I am

and here is how I’m going to fix this,” Quarto said. Boutros recalled one young woman in particular who said staff were disrespectful and made her feel uncared for. “I don't and didn't see the young lady as an inmate,” he said. “Rather, she's a patient who deserved the very best of care we can offer. I was not surprised, but was sad and upset at the staff.” He told the sheriff he expected things to change or the hospital would discontinue services there. For Boutros, who does those kinds of interviews with patients routinely, that interaction isn't wholly unique. But for others, like Quarto, it was one of many ways LC exposed civic leaders to people and issues they might not otherwise be familiar with. And it was that experience in the program in general that connected her with influential leaders like Boutros, exposed her to community

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LEADERSHIP issues and ways to address them and generally empowered her civic mentality in Northeast Ohio. The event at the jail was just one instance that Quarto found enlightening, she said. â&#x20AC;&#x153;At the end of Leadership Cleveland, I learned about the nuance in understanding how Cleveland works and found my commitment to, while Iâ&#x20AC;&#x2122;m living here, making Cleveland a better place than I found it,â&#x20AC;? Quarto said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m most certainly a better leader because of it. And underlying it all, it made me a Clevelander.â&#x20AC;?

Another 40 years Not to be understated is how the program connects people together. When LC grads need expertise on how to address a challenge in their own business or other endeavor, or when they need their board seats filled, they often fall back to friends in their LC network. Quarto, for instance, is now the chair of a civilian police review board. She was asked to join because her LC participation marked her as a civically interested Clevelander. By networking across disciplines, though, participants benefit from connections that could not only benefit them personally, but, the hope is, bridge people together to address wider community issues. It creates a â&#x20AC;&#x153;cadre of committed citizens,â&#x20AC;? Akers said. And while individuals are bound to have their own causes to champion, the LC helps connect everyone through similar goals. â&#x20AC;&#x153;The challenges of losing population was affecting 57 political subdivisions,â&#x20AC;? Akers said of Clevelandâ&#x20AC;&#x2122;s issues in the 1970s. â&#x20AC;&#x153;There were other groups and organizations addressing these issues. But the uniqueness of this thing is having a group of leaders from these various disciplines coming together and asking how can we solve this?â&#x20AC;? Paul Clark, Cleveland market president for PNC Bank, is a non-LC alum who supports the program and CLC. The bank itself has seen several graduates of the program and is a major donor to the CLC. â&#x20AC;&#x153;Leadership Cleveland, and the Cleveland Leadership Center, is the

thread that connects so many people in our community,â&#x20AC;? he said. â&#x20AC;&#x153;Organizations can develop leaders vertically, but programs such as this connect leaders across our community and help to develop networks of individuals, often times with similar passions, to work together to make our community great.â&#x20AC;? And all of that has shaped the community and made it stronger, he said. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no doubt theyâ&#x20AC;&#x2122;re an asset to the community,â&#x20AC;? Clark added. Upon graduation, that 1978 class was â&#x20AC;&#x153;pumped up and ready to change the world,â&#x20AC;? Akers said. Todayâ&#x20AC;&#x2122;s graduates convey a similar feeling. â&#x20AC;&#x153;It's one of the reasons I think Northeast Ohio is able to rise and meet challenges,â&#x20AC;? said Kristin Warzocha, president and CEO of the Greater Cleveland Food Bank, a CLC board member and grad of the LC class of 2010. â&#x20AC;&#x153;It provides a springboard for community service and helps people understand the need to do even more.â&#x20AC;? The tuition- and donor-funded CLC has seen its budget stabilize in recent years at around $1.6 million. It has the resources to continue another 40 years. But outside of tailoring programs and their focuses to address the evolving needs of the Greater Cleveland community â&#x20AC;&#x201D; a recent class, for example, focused on how the city uses its water resources, which resulted in the development of the Cleveland Metroparks Water Taxi that moves people between east and west banks of the Flats â&#x20AC;&#x201D; not much has changed with the LC program itself. The mission has not changed. And the approach to that mission of creating more civic-minded leaders in tune with the pulse of what ails the community and what it needs to thrive and support its citizenry, seems to be working. â&#x20AC;&#x153;I think we have 40 years of testimony on this: what theyâ&#x20AC;&#x2122;re doing is right on target,â&#x20AC;? Akers said. â&#x20AC;&#x153;Expanding and exposing the LC to other aspects of leadership is the right thing to do. Weâ&#x20AC;&#x2122;ve had great success and that will only continue. â&#x20AC;&#x153;And thatâ&#x20AC;&#x2122;s why all this will last another 40 years.â&#x20AC;?

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Neuros Medical Inc., a nerve stimulation company that just raised $20 million and is finishing a clinical trial involving 130 patients who suffer from post-amputation pain, has a new CEO and plans for a California operation. The Willoughby-based company last week announced it has named Tom Wilder as president and CEO. Wilder has worked in the medical technology industry for more than 30 years, most recently having led Sequent Medical Inc., a neurovascular company that developed the WEB Aneurysm Embolization System, for six years. Sequent was acquired by Terumo Corp. in 2016 for up to $380 million. He previously was president and CEO of PhotoThera Inc., a company that was developing a therapy for acute ischemic stroke patients, and Micro Therapeutics Inc., another neurovascular company.

Neuros founder Jon Snyder, who had been CEO and now takes the title of chief business officer at the company, said in a statement that Wilder â&#x20AC;&#x153;brings a proven track record and a wealth of directly relevant experience to Neuros. He is passionate about developing novel treatments for physicians and their patients who have unmet clinical needs. We are delighted to have him aboard to lead the company through the next phases of growth and expansion.â&#x20AC;? Wilder said in a statement that Neuros, which has patented its Altius System High Frequency Nerve Block technology, â&#x20AC;&#x153;has the opportunity to develop important therapy options for patients who experience significant pain as a result of a number of disease conditions. The initial indication, for post-amputation pain, represents a compelling and urgent unmet medical need.â&#x20AC;? In the news release announcing his hiring, Wilder said the company will â&#x20AC;&#x153;pursue completion of the initial IDE (investigational device exemption) pivotal clinical trial, eventual

U.S. and international commercialization of this initial indication, as well other potential clinical applications. To accomplish this, we will supplement our Ohio-based technology center with an operational headquarters based in the San Francisco Bay area.â&#x20AC;? Wilder said in a phone interview on Monday afternoon that the San Francisco operation likely will open in 2018 as the company expects to move into a commercial phase from the current clinical trial phase. That operation would â&#x20AC;&#x153;draw on a lot of experienced medical device personnel,â&#x20AC;? as well as marketing expertise in that part of the country, he said. The Northeast Ohio operation has about 10 people now and plans to add two more, Wilder said. It will continue to be an important part of Neuros, he said, since the companyâ&#x20AC;&#x2122;s technology was developed at Case Western Reserve University, and Northeast Ohioâ&#x20AC;&#x2122;s strong hospital base makes it an ideal location for tech research.

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Northeast Ohio's Wealthiest Suburbs Ranked by Median Household Income





5-YEAR ESTIMATE (2011-2015) (1)








Hunting Valley

+$250,000 (2)











Cuyahoga (3)














Pepper Pike













Moreland Hills













Kirtland Hills













Waite Hill


























Gates Mills













South Russell


























Highland Heights













Sugar Bush Knolls













Boston Heights


























Silver Lake







































Bay Village


























Avon Lake














































































Valley View







































Shaker Heights













Broadview Heights


























Westfield Center


























Seven Hills


























Sheffield Village







































Mayfield Village













Olmsted Falls













New Franklin













Walton Hills













North Ridgeville













Chagrin Falls


























North Royalton




















































North Perry














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Want the full version of this list Ñ and every other Crain's list? Become a Data Member: Source: U.S. Census Bureau 5-year American Community Survey (2011-2015). The online version of this list includes 100 communities in Cuyahoga, Lorain, Medina, Summit, Portage, Geauga, Lake and Stark counties. Have questions, suggestions or corrections? Contact Chuck Soder:

(1) All figures (other than 2010 Census population) are estimates based on surveys conducted between 2011 and 2015. Estimates for smaller communities tend to be less reliable. Margin of error information can be accessed through the bureau's FactFinder database. (2) Income exceeds $250,000. Census database would not report a higher number. (3) Part of Hunting Valley is in Geauga County.

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Hunting Valley




Gates Mills


Hunting Valley




Hunting Valley


Gates Mills


Waite Hill


Moreland Hills


Hunting Valley


Moreland Hills


Hunting Valley



Moreland Hills


Moreland Hills


One of the most remarkable and truly spectacular estates in Northeast Ohio located in the heart of Hunting Valley with breathtaking views and Chagrin River frontage! Extraordinary amenities including an indoor sports complex with pool, tennis court/basketball court, full kitchen, exercise room.

This gated estate backing on the Cuyahoga Valley National Forest is truly second to none!! Drive through the impressive gates and enjoy the exquisite landscaping leading up to the entry of the magnificent Stone manor home! Three levels of living include a gourmet dream kitchen, a luxurious first floor master suite, and a finished walk out lower level with multiple entertainment areas!

Truly the most spectacular home built with the finest of everything! A grand presentation constructed from Jerusalem stone and set on a magnificent 5 plus acre parcel. The entry rotunda will take your breath away and the entire first floor features polished porcelain floors and grand scale rooms! Entertain in the lavish great room or banquet size dining room and retire to the most luxurious first floor master suite.

This remarkable gated lakefront home was designed by renowned architect Stanford White of the architectural firm of McKim,Mead and White for industrialist Howard M. Hanna Jr.The home has been placed on the National Register of Historic Places by the United States Department of the Interior.

Extraordinary custom built Stone and Shingle Hamptons styled home sited on a breathtaking 7 acre parcel offering serenity and privacy amidst a wooded wonderland!! This one of a kind home has every amenity and luxury coupled with the finest quality materials and attention to detail! A spectacular entry with a grand 3 story staircase sets the stage for the first floor.

Set in a storybook setting accessed by a private drive offering total privacy amidst a wooded wonderland and glorious gardens, this utterly charming cape cod is truly breathtaking! Upon entering, one is welcomed into a home filled with charming details including beamed ceilings, wood floors, extensive built-ins, and exquisite décor throughout! The gracious living and dining rooms are perfect for formal entertaining.

Truly an outstanding property with views of the Chagrin River that are second to none!! This all stone manor home sited on 26 acres is an architectural masterpiece offering every imaginable luxury and amenity coupled with quality beyond compare!

This is a truly one of a kind showplace designed for Grand Scale entertaining and luxury living! Nothing has been overlooked or spared in this extraordinary home with a mountain modern flair highlighted by walls of windows, an open flowing floor plan, soaring ceilings, and the finest materials throughout. The gated entrance sets the stage for this home.

Remarkable one owner custom built transitional home that is designed for grand scale entertaining and luxury living! A dramatic 2 story foyer sets the stage for this impressive home and opens into the magnificent cherry paneled library with extraordinary built-ins and a banquet size formal dining room! The dramatic 2 story Great Room has a fabulous stone fireplace and a wall of windows overlooking the private park like yard!

Paskevich designed and built by P & T Builders this stone and shingle English manor is an extraordinary home sited on a breathtaking almost 8 acre parcel in the heart of Hunting Valley! This gated estate offers every imaginable luxury including a spectacular pool house/guest house, stunning grounds, 3 gated entrances and garages for 7 cars! The interior is extraordinarily elegant featuring meticulous craftsmanship and a gracious floor plan!

Designed and built by the Builder for his own residence, this Perrino home is simply outstanding! Sited on the most spectacular lot highlighted by 3 water features(lakes) with fountains, this home has views from every window that will take your breath away! Quality and attention to detail are coupled with state of the art technology and a floor plan for today’s luxury living!

Remarkable Marc Graham built modern cape cod on the most spectacular private wooded lot! Custom designed with a fabulous open floor plan highlighted by walls of windows, soft neutral décor, and exemplary quality finishes throughout! The first floor is perfect for entertaining highlighted by a gorgeous great room, charming formal dining room with a beamed vaulted ceiling, and a glorious porch overlooking the wooded rear yard!


Pepper Pike


Incredible custom built one owner home prominently sited on the cul-desac of this sought after street! Designed for luxury living and entertaining, this California inspired manor home is truly one of a kind! The spectacular kitchen/family room area is second to none and an additional kids family room is adjacent.

Moreland Hills

Fabulous all brick transitional home with an incredible open floor plan sited on a spectacular park like lot! This home has had extensive renovations and remodeling throughout including a kitchen second to none! The first floor has a fabulous Great Room with gorgeous fireplace, hardwood floors, and walls of windows! The kitchen area is truly incredible offering a heated limestone floor, double center islands, and Wolf professional range.

This is a truly fabulous home offering every imaginable luxury and amenity! The setting is magical, offering exquisite landscaping and total privacy amidst a wooded wonderland! Exceptionally maintained, this home has a wonderful floor plan highlighted by walls of windows, spacious rooms, and updated modern fresh décor throughout! Highlights of the main living area include a newer gourmet dream kitchen opening onto the spectacular 2 story Great Room.

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Magnificent one owner custom built contemporary sited on a gorgeous cul-de-sac lot! This fabulous home has every luxury and amenity including a wide open floor plan designed for entertaining highlighted by a spectacular great room and gourmet dream kitchen! A luxurious first floor master suite features a marble fireplace and beautiful glamour bath!

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City hopes to get BOUNCE in innovation By DAN SHINGLER @DanShingler

Businesses are going to be key to the success of Akron mayor Dan Horrigan’s new venture, the BOUNCE Innovation District, planned for the area around Canal Place on South Main Street. That’s according to, among others, David Zipper, the main man who helped the city conceive of BOUNCE. “We need corporations in and around Summit County embracing BOUNCE as being in their self-interest,” Zipper said. “Not something they give a few thousand dollars to support, but something they see as important to their own efforts. They have to really buy into that. And not just businesses, but universities and others, too.” If BOUNCE works, those same businesses, people and organizations will be among the chief beneficiaries, Zipper said. The project can make local businesses more competitive by increasing their talent pool and collaborative efforts. It’s also a continuation of policies the city has been pursuing to make downtown more livable, walkable and, above all, more populated. But, what the heck is BOUNCE? Horrigan frequently uses the word “reimagine” when he talks about it, but it’s part rebranding and part big dream. The city, along with partners like the Burton D. Morgan Foundation, already support and help manage the Akron Global Business Accelerator and its Bit Factory software startup unit, and those things will remain, Horrigan said. The Bits and Atoms innovation center, backed by a $2.5 million federal grant? That will be here, too. But separately, and under those names? No. Horrigan said he expects at least some of the existing staff of the accelerator and other absorbed programs to move to BOUNCE, but said it’s yet to be determined if all of them will make the transition. What he, Zipper and other supporters hope BOUNCE will become is a campuslike setting that takes over all these entities and adds programming space, equipment (such 3D printers) and expertise to help technical inno-

Part of the former B.F. Goodrich facility in downtown Akron, the building that currently houses the Akron Global Business Accelerator, will be home to BOUNCE offices and spaces. (City of Akron)

vators, makers, entrepreneurs, investors and supporting-service providers. And, most importantly, they want people to make it a community, possibly even with associated residences, restaurants or retailers. If that sounds like a big dream, it is. “I’m doing it different,” Horrigan said. BOUNCE will take up more of the space in the former B.F. Goodrich building that currently houses the accelerator. The space will include a café, possibly more offices and other features the city says it will announce around Jan. 1. “This is not something other cities have not done, but I’m trying to take the best pieces of parts of other programs I’ve seen,” Horrigan said. Many of the things that may work for BOUNCE are also being used by Akron to improve its downtown and neighborhoods, Horrigan said, like walking paths connecting key points, bike lanes and secure bike parking. Zipper is not some music man selling unneeded convention centers or

marching bands, though. The former New York City and Washington economic development director is a partner in the D.C.-based 1776 venture fund and startup network, and a fellow at the German Marshall Fund of the United States, which is focused on innovation efforts in American and European cities. What he’s not, Zipper said, is a consultant. Horrigan convinced him to be one, for Akron, after the two met via a Smart Cities program. “He was very convincing and got me to come out in late January of this year to meet with stakeholders,” Zipper said. The mayor wanted to know: What are we doing wrong? What should we do differently? And what opportunities are we not even thinking of? Zipper said he surveyed business leaders, academics and others and then told Horrigan what he’d heard and what he thought. “There was remarkably little disagreement about what was happening on the ground … The perceptions

were, most importantly, that it’s a city of silos,” Zipper said. “You have tremendous R&D being done and a very strong corporate base in the city, but it’s all being done individually.” Zipper told the city it should bring together its existing efforts, resources and, hopefully, its creative class and get them to talk to one another, collaborate and create more value for themselves and the business climate. It’s very early days — too early to make specific asks of area businesses for programming support or most other types of physical involvement. But, so far, those who have heard Zipper, the mayor and others speak of BOUNCE say they like what they hear and intend to support it. That includes Goodyear, where the R&D department was instrumental in the University of Akron becoming a polymer-science powerhouse. “We are not formally involved just yet beyond a few exploratory meetings about the project. We think it’s an exciting opportunity for local Akron entrepreneurs and innovators, and we

look forward to getting involved,” said Goodyear spokesman Troy Scully. It also includes GOJO, a progressive company known for innovation in both its marketing and product development that is close enough to the former Goodrich buildings — which also house Canal Place — that its workers could visit BOUNCE without getting wet on a rainy day. “Collaboration is key to economic development, continued growth and building community,” GOJO chairman and CEO Joe Kanfer said via email. “These are all things that BOUNCE sets out to do, and I’m excited to see the ideas that will be generated from this innovation hub.” BOUNCE also will need smaller companies, entrepreneurs, techies and members of the creative class — a group many see as key to successful innovation and startup hubs. In other words, people like Eric Wise, co-founder and chief academic officer of the Software Guild, a coding boot camp that operates out of the Global Business Accelerator now. “I’m excited to see the city investing in that kind of space,” he said. “I’m hoping it gives people a space where they’re proud to hang out, where there’s buzz, activity, and especially community.” He thinks corporate involvement will be critical, but sees more responsibility falling on himself and other innovators to make the space too valuable for corporations to ignore. “It’s up to us in the ecosystem and the city of Akron to give them a compelling reason to be involved,” Wise said. But Wise knows it won’t be an easy thing to do. “From what I’ve experienced with other initiatives, I think it’s going to be a challenge,” Wise said. Other attempts have given people cheap space and shared resources but never succeeded in giving people a compelling reason to just hang out in the space. It’s a conundrum of critical mass: If there are other like-minded people to talk to, innovators will come. If not, they won’t. But Wise said he plans to do what he can to make this initiative work. “I’m really hoping that part of the Software Guild’s role is to build that community. The city has always seen us an anchor, and we take that role seriously,” Wise said.

Akron Honey is abuzz with new product focus By JENNIFER KARPUS-ROMAIN

Brent Wesley is known around Northeast Ohio for his hustle. He started Akron Honey Co. in June 2013 and gained a lot of local notoriety after appearing on CNBC’s reality business show “Cleveland Hustles” in 2016. On the show, he turned down a $100,000 investment because he still needed to figure out where he wanted his company to go. Since then, Wesley has steered the company in a new direction. “At the end of the show, that kind of marked the beginning of something else for us,” he said. The path to where he is now was a winding one and included in March

the opening, and since closing, of a pop-up shop on North Main Street in downtown Akron. His next move will be to set up shop later this month in the new Wesley Northside Marketplace, on Furnace Street, that will serve as a micro-production site and a location where people will be able to purchase honey and what he hopes will be the company’s next big focus: men’s personal care products. Though, he eventually hopes to move his line into retail stores instead of running his own spot. Plus, he will, of course, offer online shopping. The downtown spot was “more of a

temporary space,” Wesley said. “(The business) kind of feels brand new again a little bit, but it’s the same formula, just a different manifestation. It’s manifesting itself in men’s personal care.” Wesley aims for the men’s skin care line to be 80% to 90% of his very young business in the long run. His honey line brought in $15,000 last year. He tested the beauty market with a few gender-neutral items last fall and will launch a men’s skin care line in late September. The men’s care products will all be handmade and created from natural ingredients, including wax and propolis from the 17 hives across three apiaries he has in the city. He chose men’s skin care because he felt he could represent the market

with more authenticity than in a gender-neutral space. “In the beauty world, gender neutral really means women,” Wesley said. “A lot of your subscriber base, your customers are women.” The women’s skin care market is saturated, he added, but the men’s market is on the rise. “How one smells, how one looks, the appearance, the aging. Things like that have been a huge uptick of awareness among men,” Wesley said. Wesley has been in research mode and is excited to launch the new products in the next couple of months. “A lot of folks want to consume Akron Honey Co. in more ways,” Wesley said. “It would be easy to start releasing stuff, but I want to make sure it’s done the right way.” His six-month goal with the line is

to move 500 units a month, about $5,000. His marketing focus is on social media and online marketing. One of Wesley’s biggest goals with the line is transparency with ingredients, process and production. “In particular, we’re talking about transparency of the ingredients, integrity of the ingredients and quality of process,” he said. Wesley does not want to be a large company like Sephora or even Burt’s Bee. He just wants to do a few things extremely well. He is developing four products: a moisturizing salve, body wash, hair conditioner and face scrub. “When people use our products, you’ll actually be able to experience a little bit of a scent of a hive,” Wesley said.



Marble Room management, left to right: Lynda Khoury, director of private dining; Sonny Gorushanovich, general manager; and Malisse Sinito, president of Millenia Hospitality Group. (Photographs by Peggy Turbett for Crain’s)


A procession of designers contributed to the space’s refurbishment and transformation, among them Morris Nathanson Design director John Bell of Pawtucket, R.I. The space was completed by American Preservation Builders LLC and members of the Millennia organization. If the setting itself is the Marble Room’s obvious headliner, the production would need a powerful costar: remarkable food. To provide that, Malisse Sinito wanted someone with extensive international experience at the helm and a reliable team in the kitchen. Sonny Gorushanovich was her choice for general manager. In addition to stints in Europe and the Middle East, he has headed operations for dining at the Fontainebleau Miami Beach and worked as food and beverage manager for properties in Washington, D.C. Millennia Hospitality then looked within its current team to build the core organization. Alberto Leandri, executive chef for LockKeepers, was a lead player in setting the tone. Though he’s playing the central role in creating Millennia’s next project — Il Venetia, in the former David’s restaurant space at Key Center — Leandri and Sinito needed a compelling force in the kitchen.

The cavernous National City Bank lobby is transformed into dining elegance with contemporary luminary globes and sound-softening carpeting at the Marble Room Steaks and Raw Bar on Euclid Avenue.

They decided that LockKeepers’ longtime sous chef, Brandon Veres, was ready for the challenge. He’ll oversee as executive chef. Still in his 20s, the unassuming Veres, a Culinary Institute of America graduate, brings a driving work ethic and high level of expectation to the operation. He’s teamed with chef de cuisine Kyle Anderson (late of Red the Steakhouse), executive pastry chef Dwight Penney (The Country Club, Pepper Pike) and executive sushi chef Jaango Enkhtaivan (last at The Four Seasons Washington, D.C.)

Lynda Khoury heads up Marble Room’s private dining services. Khoury herself is something of a local restaurant legend: Early in Tremont’s rebirth, she opened the Bohemia Club Cafe, later selling the space to Liz and Michael Symon to open the original Lola Bistro. She’ll book events in Marble Room’s 140-room banquet facility and several smaller spaces within the complex. Steaks are at the heart of the menu, of course, with 10 types offered, including filets in three different sizes, a 12-ounce New York strip and a


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choice of dry-aged and conventional through Friday. “We believe in lunchtime,” Sinito Delmonico cuts. Served a la carte, beef options are priced at $38 and up. said. “Midday can be a fun time. A lot Looking for more prestige on your happens during the afternoon. “And I believe in a bar being open plate? As we toured Marble Room’s meticulously organized walk-in cool- throughout the day, all day long,” Sinito ers, Veres proudly showed off an ex- said. “I don’t like to walk into a place at ceptionally handsome 42-ounce, ‘cocktail hour’ and feel like it’s opening long-bone Tomahawk steak (it’ll set cold. It should feel lively and inviting.” As for Sunday service, the space you back $125) and A5 Miyazaki Kobe strip loin (sold by the ounce, $20 per, will be closed in order to host private with a 4-ounce minimum). The raw events — anything from gatherings bar will produce half-shell oysters, in the trio of interconnected Peacock sashimi and sushi, and other raw or Rooms on the mezzanine level, to the cooked shellfish. Whole Maine lob- ballroom above, or the entire main ster, cioppino, King crab and a small dining room and lounge. “People travel all over to get married,” selection of seafood are also available. After opening day, Marble Room Sinito said. “When they see this place… talk about aSEPTEMBER destination4,4,wedding. ” will offer lunchCRAIN'S serviceCLEVELAND Monday BUSINESS CRAIN'S CLEVELAND BUSINESS μμ SEPTEMBER 2017 2017 μμ PAGE PAGE25 25


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S E P T E M B E R 4 - 10 , 2 017 |


A major asset of the peninsula, the empty former home of Ferry Cap & Set Screw Co. at 2151 Scranton Road, was on the cusp of redevelopment until plans by the Northeast Ohio Regional Sewer District to build a tunnel on part of the property tossed at least a three-year delay into a proposal to renovate it to apartments. The firm moved in 2005 to Lakewood. WXZ Development of Fairview Park, a well-established retail and multifamily building owner and developer that’s been active building apartments the past few years in University Circle, had planned to undertake the project at the early 20th-century Ferry building until the Scranton sewer plan surfaced as part of the district’s vast plan to reduce sanitary sewer outflows into Lake Erie. Jim Wymer, WXZ president, said his company was drawn to the Ferry building because of its location. “That building has great views of Lake Erie on its upper floors,” Wymer said. “It’s unique because of its proximity to three districts that are housing hot spots — Ohio City, Tremont and downtown. We’ve been following the news of the extension of the Towpath Trail and the Cleveland Metroparks Lake Link in the area. It’s a gem of dynamic urban planning that will attract the millennial renter or home buyer.” The sewer district is negotiating for permanent access to a nearly 1/2acre parcel near Ferry at 2111 Scranton Road and temporary access to nearly 3 acres abutting the building for construction equipment, according to Jennifer Elting, the district’s senior public information specialist. The district’s board will consider a resolution at its Thursday, Sept. 7, meeting to appropriate the property through eminent domain if the parties cannot come to terms.


Wymer said whether his firm will play the waiting game for the property and how the district’s plan for a shaft on the site will shape what WXZ can do there are all factors in the negotiation. The shaft will be part of the construction of a sewer more than 50 feet in diameter in a $160 million project to redirect sewage to the Westerly Treatment plant before it is released into Lake Erie. Among other benefits, Elting said the plan eliminates a combined rain and sanitary sewer that empties nearby into the river during periods of heavy rainfall. Wymer is more optimistic about staying with the project than Stickney, who fears the dispute may sink the proposal. The other dynamic gripping Scranton Peninsula is simply demand for land and property by developers, renters and prospective homeowners. That has just started to emerge at the west end of the peninsula, which overlooks the river and downtown in the distance. The $15 million Fairmont Creamery project by Oberlin-based Sustainable Community Associates has put 50 high-end residential rentals and retail properties into a former dairy at 2306 W. 17th St., which sits atop the hill. Two townhouse projects are in the planning stages, and custom home builders are also busy nearby. Ted Theophylactos, president of the Ted & Co. team at Howard Hanna Real Estate Services, said, “We’ve run out of land (for redevelopment) in central Tremont. It’s a natural progression for builders and buyers to look toward Scranton Peninsula because so much land is there.” He should know. One of his clients, Gustave Development of Cleveland, is constructing Eleven Scranton at 2321 Scranton Ave. Theophylactos said six of the 10 townhouses planned at the site are under reservations for sale. That’s staggering. The units won’t be available until fall of next year.

The three-story contemporary townhouses, which will have topfloor decks featuring downtown views, carry asking prices upward of $400,000 each. “It’s really exciting,” Theophylactos said. “Our buyers are from Manhattan, Los Angeles and Cleveland.”

Opportunity at the core While the site may be edgy, it’s no longer pioneering the way virtually every urban project was two decades ago. Cleveland’s property tax abatements for housing ignited the city market and it flared anew in the years since the Great Recession ebbed. Six homes within a half-mile of Eleven Scranton have sold for an average price of $385,000 since March, according to Howard Hanna research. Of the 248 properties on the market Thursday, Aug. 31, in the Near West Side and part of downtown Cleveland zip code 44113, the average asking price is $258,000, Howard Hanna reports. On the north side of the peninsula, the Irishtown Bend townhouses at Columbus Road and Carter are now 15 years old, and were undeniably pioneers. Keith Brown, president of Progressive Urban Real Estate and a partner in the Irishtown townhouse development, said even then the attraction of the peninsula was its location “at the center of the city.” New homes now line the northern side of Columbus as it climbs upward from the river valley. Scranton Peninsula is also the beneficiary of place making, which typically follows real estate redevelopment in Cleveland rather than leading it. Irishtown Bend overlooks the just-completed $2.5 million Lake Link Trail of Cleveland Metroparks, which skirts the upper, western, reaches of the peninsula. The southern side of the peninsula by Scranton

is the home of Scranton Flats, a $9 million urban park at the river’s edge with a fishing pier and a bike path that will by 2020 connect downtown with Zoar, Ohio, along the one-time route of the Ohio Canal. Tim Donovan, executive director of the Ohio Canal Corridor nonprofit, said the city of Cleveland’s rebuilding of the pavement on Carter and Scranton have kept his group from tracking how many people are actually using Scranton Flats, but he knows it’s popular. He argues the nearby sites have for decades been ready for development and just needed to be recognized by the property owners.

The potential scale For Forest City’s part, its 1988 plan to do a major development on Scranton Peninsula was put in motion while it was involved in the multi-million-dollar renovation of the city’s rail terminal complex into Tower City Center. In the years since as it grew it became focused on larger metropolitan markets from New York to San Francisco. This year marked the sale of its last pieces of the languishing urban mall, Terminal Tower and other parts of Tower City as the company undergoes a transformation process to become narrowly focused on mixed-use office, residential and amenity retail properties in the nation’s major cities. Shedding the Scranton Peninsula site was almost coincidental in its effort to recast its $8 billion portfolio. The Irishtown Bend condos are at the western end of Carter. They are near the vast, largely empty weed-covered land that Forest City sold in August to EWAT Holdings LLC, a joint venture formed by Tremont townhouse developer Jesse Grant, ubiquitous suburban-turned-urban developer Fred Geis and Matthew Weiner, a Savannah, Ga.,-based attorney with real


estate development experience. Weiner, who serves as the trio’s spokesman, said it’s too early in its process to discuss its ideas in detail because its master plan is in the drafting stage. However, in an email Weiner said the developers told their land planner, the global firm Perkins + Will, to analyze several different scenarios for a mixed-use development on the peninsula. “We want each use to be self-evident on the site and fit within the context of our surroundings and proximities,” Weiner wrote. “With a parcel this size, we’ve really approached it as a blank slate and are working to create the best potential plan after taking into account all considerations.” The potential scale is enormous: that property is half the size of the property that formed Progressive Field and Quicken Loans Arena downtown. Weiner and Stickney both said separately the two parties have discussed how their properties may complement each other. “We’ve been down there forever,” Stickney said. “We’re not selling.” Stickney said executives of the trust want to make sure its plans fit with those of the EWAT group. The vision, he added, is for separately conducted projects on both sides of the peninsula to set up a dynamic for development that could extend across the peninsula. “Clearly,” Weiner wrote, “the peninsula should be developed in a cohesive way, and we believe everyone is united in this idea. We are confident we can develop something that will fit well with our surroundings.” Although Forest City’s sale of its peninsula properties did not disclose a sale price, mortgages indicate the EWAT group spent more than $5 million on the site. That’s a lot of motivation for a private group of entrepreneurs who joint ventured on the investment.

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Eileen Nacht AIA, LEED AP, EDAC

Jennifer A. Lesny Fleming

Senior Project Director

Matasar Jacobs

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NONPROFITS Mary Lavigne-Butler Vice President of External Affairs

Greater Cleveland Food Bank Mary LaVigne Butler has been named as the new Vice President of External Affairs at the Greater Cleveland Food Bank after serving in development for the last year. Lavigne-Butler is a Northeast Ohioan by birth but spent much of her career in Silicon Valley, where she served as VP of Development and General Counsel for a large healthcare non-profit organization in San Jose, California. As Vice President, she leads the Food Bank’s fundraising, communications, volunteer and advocacy efforts.


Source Lunch


S E P T E M B E R 4 - 10 , 2 017


PA G E 2 7

Rico Pietro

Managing partner, Cushman & Wakefield Cresco Scratch beneath the surface of several big real estate deals in Cleveland the last couple years, and chances are you’ll find real estate broker Rico Pietro had a hand in them. He handled the sale of Forest City Realty Trust’s Terminal Tower in 2016 and Post Office Plaza in August to K&D Group of Willoughby. He sold to an affiliate of Stark Enterprises and J-DEK Investments the site of the proposed nuCLEus skyscraper. And he is a three-time winner of the commercial real estate trade group NAIOP Northern Ohio’s office broker of the year award. His enthusiasm is infectious. He’s flexible and moves fast. He gladly pulls into a metered parking spot for his Cadillac Escalade on West 25th Street, saying he feels valet fees may bankrupt him. Talking real estate comes as easily to Pietro as breathing, by upbringing as well as by genes. His mother, father, stepfather and brother are either residential real estate agents, flipping houses or in construction. — Stan Bullard

Five things What do you listen to in the car? It’s on WTAM-1100 for news or sports radio during typical commuting times. Otherwise, it sits on WKRK-FM 92.3 The Fan.

Hobbies? “I play on basketball leagues at the Jewish Community Federation and at Mayfield High School. I love to go to pro basketball and football games, but my wife says I do it as another excuse to talk about real estate.”

Favorite sport in Cleveland? “I love Tremont.”

What’s your fun car as opposed to the work car? “I have a ’61 Cadillac convertible. It’s black and looks like a Batmobile — not the new one, but the old-school one.”

What do you do to chill? “My wife and I love to walk Cletus, our white boxer, in Cleveland Metroparks. We really enjoy Acacia because it’s the newest park. You can see it evolving.”

Lunch spot TownHall 1909 West 25th Street, Cleveland

The meal Both had the TownHall veggie burger, one with fries, the other with a salad. One had a drink called “Pure Green,” a concoction of chard, collard, cucumber, kale, spinach and ginger. The other had a diet Coke.

The vibe The storefront houses a loud, high-energy, fun place. Customers range from folks dressed for business to families having lunch. It’s jammed during lunch. Not the place for a quiet chat.

The bill $38.96 with tip

Where are we at in the real estate cycle? I’m more optimistic than most people. We’re not close to the end. I really believe we’re at the national anthem stage of the cycle. I see growth diversifying from where it has been, from apartments to mixed use, office and a boom coming in the industrial market. Cleveland is ready for that high note. Some of your recent deals relied on state historic tax credits or other public incentives. Does anything get done anymore without a government incentive to help it along? I say yes. And more than ever. There are projects going up in Ohio City, Slavic Village and Tremont that rely on sweat equity. Property tax abatements for residential, which are given by default, are essential. But a lot of local developers are doing projects without incentives. Joel Scheer did not use incentives at Settlers Pointe (the former Sammy’s building in Cleveland). For big projects, you hear from the out-of-towners that construction costs are the same here as in bigger cities but not rents. We have to get past that gap. You’ve spent a lot of time working in the office market. Some pros say the office market is dead. What do you think? I think we haven’t really seen the impact of beam (timbers) and brick on the office market here yet the way other cities have. And the city of Cleveland has a lot of historic buildings that are the types of settings newer companies are seeking. We’re just starting to see the entrepreneurial nature of millennials in Cleveland. After a company matures, it tends to go into more traditional office space. Listen, a lot of business is about experience. Look at Mitchell’s on West 25th Street. It’s a production facility, you go in there and buy ice cream, and when you leave, it’s been an experience. There are a lot of opportunities like that in Cleveland. Where do you get ideas? I get a lot of ideas in restaurants like this (TownHall). I use my phone to take pictures of settings or a chair I like. When we’re working with clients, you never know what will crop up as a solution. When we travel, my wife has learned to tolerate it when I stop into a building like LinkedIn has in San

Francisco. Or WeWork (the co-working company) when I was in Chicago. We’ve really not seen what co-working can do for growing companies yet locally. For a lot of companies, settings are becoming destination based rather than commodity based. In the past, people who were leading real estate brokerages would say they lost the wrestling match with their partners. I doubt you lost an arm wrestling match. How was it you wound up becoming Cushman Wakefield Cresco’s managing partner last year? First, my partners selected me for it. I’m the first principal at Cresco who began there as an associate, so I believe I can bring that perspective to the table in terms of what associates want. Moreover, real estate today is more than signs. We need to take it to a different level. I think we need to do all we can to use technology, whether it’s video or drone shots of a building, to tell our story. I want to push the envelope, challenge what’s been standard practice. It’s a different way of practicing real estate brokerage. It used to be that you controlled the information so people would come and see you. Now it’s a case of giving consumers all the information they want. It also makes us more efficient and consultative. When I started in the business, it was always, get the meeting. Get the meeting. That’s no longer the case. I used to be happy to do two showings (of properties) a day. Now we can do 10. Land records indicate you’ve been active in the residential market. What are you up to? My wife and I are building an oversized ranch in Pepper Pike. It’s oversized in the sense that a seven-foot door doesn’t work for me. (Pietro is tall — 6-foot-7, to be exact. He prefers to say 5 feet, 19 inches.) Everything in it will be supersized. How is doing Cleveland real estate different today than in the past? People don’t feel like they have to apologize for being from Cleveland anymore. In the last five years, the groans when you say you are from Cleveland have disappeared. What question nags you about the future of Northeast Ohio real estate? Who will be the millennial who steps up to do a big real estate deal?

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President & CEO, Destination Cleveland President & CEO, Greater Cleveland Sports Commission President & CEO, Cleveland 2016 Host Committee for the Republican National Convention

Crain's Cleveland Business  

September 4 - 10, 2017 issue

Crain's Cleveland Business  

September 4 - 10, 2017 issue