Crain's Cleveland Business

Page 1

VOL. 40, NO. 26

JULY 1 - 7, 2019

Source Lunch

Akron

Doug Weintraub, CEO, Bounce Innovation Hub

The 797 Residence building is set to open in Middlebury Page 24

Page 27

The List

CLEVELAND BUSINESS

Employee Benefit Services Firms Page 23

FROM THE EDITOR

OHIO FARMING’S WASHOUT

I

in Wooster in a territory that ranges f you think you’re having a from Lake Erie to southern Ashland tough day at the office, considCounty. He talks to a lot of others er the life of the Ohio farmer. who sit in the tractor seat. This year, The early hours, the hard labor they all say, has been like no other. and the cruelties that can be in“There are some 80-year-old flicted by weather patterns and farmers who told me this is by far, trade policy. with no question, the worst year Medina County farmer Tyler Arthey’ve ever seen,” Arters said. ters told me he was driving a tractor Ohio and the other 17 corn-pro“as soon as I could reach the pedals.” Elizabeth ducing states in the Midwest and He still works the 1,200 acres of McIntyre the Great Plains have been inunhis family’s land in Chatham Towndated with heavy rains this spring that have ship with his father and brother. When Arters is not farming, he’s selling delayed or prevented plantings. How bad is it? John Deere equipment for Ag-Pro Companies Domestic plantings by mid-June were at the

slowest pace in more than 40 years, according to a U.S. Department of Agriculture report. Ohio has been particularly hard hit by the extreme weather and has lagged behind every corn- and soybean-growing state in the country the entire planting season, said Ty Higgins, spokesman for the Ohio Farm Bureau. “You ask someone’s dad or grandpa who’s been on that farm for 50, 60 years if they’ve seen anything like this and they’ll say not even close. It’s unprecedented,” he said. This isn’t idle chatter with Grandpa about the weather. It’s not a curious fact to be logged into the almanac and forgotten. This is a natural disaster that came a few inches at

a time and now presents an existential threat to those who feed us. Agriculture is one of Ohio’s major industries, contributing more than $10 billion to the state’s economy annually, with the vast majority coming from corn and soybean crops. No area of Ohio has been harder hit than the northwest part of the state. I recently drove to Detroit and was shocked seeing the underwater fields along the Ohio Turnpike in Ottawa, Wood and Lucas counties. Fields that should be knee-high by the Fourth of July with corn were knee-deep in water or weeds. SEE MCINTYRE, PAGE 25

Ohio farmers traditionally plant in April or early May. Heavy, persistent rain this year has delayed planting into June, if at all. (Ohio Farm Bureau)

REAL ESTATE

GOVERNMENT

Columbus-based developers join fray

HIMSS departure opens a gap at Global Center

Cleveland-area demand for housing options finally lures firms north By Stan Bullard

The sight is becoming alwood to Pepper Pike. most commonplace as “We see a need in all the multifamily real estate demetro areas of Ohio for new sbullard@crain.com velopment continues to housing options,” said Kol@CrainRltyWriter pick up in the region. Howby Turnock, a vice president of Casto’s Casto ComConstruction workers have ever, the $18 million-plus munities unit, in a June 25 scraped down to the dirt on the project in Ohio City is Cophone interview. “In northwest corner of Cleveland’s lumbus-based Casto’s first (Ohio’s) vibrant urban Franklin Circle. With a massive undertaking in Cleveland. neighborhoods there is a crane, they are pounding in metal Casto is also one of four Turnock lot of pent-up demand, but bulkheads to form part of the foun- companies from the state dation for a 116-suite apartment capital that have projects taking not a lot of new product. We’ve covshape in Northeast Ohio, from Lake- ered the spectrum of multifamily debuilding that will rise five floors. velopment (in Columbus), including infill development, where we’ve had Entire contents © 2019 by Crain Communications Inc. some success. The new waves of millennials and empty-nesters interested in city neighborhoods have driven our focus to areas with those characteristics.” The appearance of the Columbus crowd is notable because the relative proximity of the two big cities should have made Cleveland a target long ago. SEE COLUMBUS, PAGE 25

P001_CL_20190701.indd 1

By Jay Miller jmiller@crain.com @millerjh

With the departure of the Healthcare Information and Management Systems Society (HIMSS) Innovation and Conference Center, its lead tenant, the building that once was called the Medical Mart and now is the Global Center for Health Innovation remains a work in progress six years after its opening. On June 25, Crain’s reported that the Chicago-based health information nonprofit would wind down its operations at the Global Center over the next six to 12 months. Landing HIMSS had been a major win for the Cuyahoga County-owned building. It has been the building’s largest tenant, occupying 22,700 square feet there since the building opened in 2013, and in

October 2018 it signed a three-year extension of its lease. HIMSS promoted its Innovation Center as the only testing, exhibition and conference facility to offer real-time demonstrations of the latest in health care technologies. Among the several dozen firms that showcased products there were local companies such as Hyland Software Inc. and MCPc Inc., as well as international companies including CDW Healthcare, Dell Technologies Inc. and Fujitsu Ltd. Karen Groppe, HIMSS senior director of strategic communications, told Crain’s that the organization still will have a presence in Cleveland. “We’re still going to be in Cleveland. We’re not abandoning Cleveland,” she said. “We’re beginning to phase out the Innovation Center we have in Cleveland.” SEE HIMSS, PAGE 26

6/28/19 3:58 PM


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