COSE Update September/October 2016 by COSE (Council of Smaller Enterprises)

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ELECTION GUIDE INSIDE

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SEPTEMBER/OCTOBER 2015 COSE.ORG

BUILDING BUSINESS How 4 Investments in Northeast Ohio Are Lifting Area Businesses

Contents SEPTEMBER/OCTOBER 2015 • ISSUE 5 • VOLUME 38

22 Green Lease

4 Memo

Learn how a growing number of tenants, landlords and others are looking to the lease as a way to come together on energy efficiency.

6 Constructing Cleveland’s Future Cleveland is under construction. Investment and development are booming. But how are the infrastructure projects changing the business ecosystem in the city?

12 Decision Time Northeast Ohio voters are going to be confronted with a wide range of issues when they head to the polls in November. Cose Update takes a deep dive into each of the issues voters will be deciding.

14 Cash Convention The 2016 Republican National Convention represents a unique opportunity for small companies to win big business. Learn the ways local companies will be looking to squeeze cash out of the Convention.

16 Akron’s New Direction For the first time in nearly three decades, Akron will be getting a new mayor. What priorities should the city’s new leader have in mind? And what are the candidates focusing on?

20 Sky’s the Limit Cleveland Hopkins and Akron-Canton airports have fought off recent challenges and are rising to new heights.

GET RESULTS FOR YOUR BUSINESS BY ADVERTISING WITH US!

Contact Courtney Woofter at cwoofter@cose.org to learn more.

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Memo A PUBLICATION OF THE COUNCIL OF SMALLER ENTERPRISES

New resources coming soon

s an entrepreneur or small business owner, I know you are well-acquainted with change. You launch a new product or service? You change your marketing. Your demand levels have shifted? You change your pricing. Being nimble and having the ability to pivot as needed is just as important as ever. And that also applies to the publishing business. You are holding in your hands the final issue of the COSE Update. Now, before you swamp COSE’s offices with letters, emails and phone calls demanding its return, let me finish. While this is the end of COSE Update, it is the beginning of a new chapter. In January, we will re-launch the magazine with a new look, new editorial direction and a new name. Why are we doing this? We at COSE put you, the small business owner, at the forefront of everything we do. We want to bring you solutions that are the perfect fit for your business. And that desire extends to this publication. We will write from your perspective. When you finish reading through one of the magazine’s issues, we want you to walk away with both a clear understanding of the issues facing your business—and the steps you need to take to overcome those issues and lift your business to the next level. In addition, be on the lookout for resource guides that we will be sending out to you as well. These supplementary guides will serve as your one-stop-shop listing of business resources your company needs to thrive. We hope you enjoy this “final” edition of the COSE Update. And we hope you enjoy the change that is coming your way.

Steve Millard, president and executive director

smillard@cose.org 216.592.2436

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COUNCIL OF SMALLER ENTERPRISES Steve Millard President and Executive Director smillard@cose.org Megan Kim Vice President, Business Operations mkim@cose.org Brynn Popa Vice President, External Relations & Market Development bpopa@cose.org Shawn Turner Content Director sturner@cose.org Dan Roman Director, COSE Corporate and Foundation Relations droman@cose.org Courtney Woofter Account Executive, Advertising and Sponsorship cwoofter@cose.org GENERAL COMMENTS OR IDEAS update@cose.org CONTRIBUTORS Christine Jindra, Kristen Hampshire COSE.ORG Crain Communications, Inc. Design and Production Services Staci Buck ART DIRECTOR

Upfront  COSE extends a warm welcome to the following new members: 216 Software, LLC Advanced F&I Solutions, LLC Aisco Metallizing,Corp. Akron Community Service Center & Urban League AllStar Laundry Service, LLC American National Fleet Service, Inc. ARCO Comfort Air LLC B & R Machine Company B J R P LLC Bachtel & Associates Inc Brookside Auto Parts Inc. C. Lee Plumbing Services, LLC Calhoun Beauty Salon, Inc. Call & Post Newspapers Callahan’s Carpet Cavanaugh Photography Chagrin Valley Anesthesia LLC Chlebina Capital Management CNG-One, LLC

Compass Payroll Services Conrad-Kacsik Instrument Systems, Inc. Cookies By Design Davis Construction Dr. Disha H. Pennington DDS LLC Dr. Jonathan M. Schonfeld, Inc. Ehle, Morrison Group, Ltd. Everything Tented F1-Networks Fairway Wealth Management LLC Fight Fit First Source Title Agency Inc. Fresh Fork Market Friar Enterprises, Inc. Global Graphics, Inc. Global Village Academy Headwaters Building Co. Hearing Centers, Inc. Highbridge Holdings LLC

Hudson Presbyterian Church Ideas, Inc. Industrial Dock & Door Inc. Industrial Timber & Lumber Company Inverness Holdings J & F Luxury Travel Jager Consulting Just for Kids Kuhns & Associates Inc Lazzaro Luka Law Offices LLC Liberty Concrete, Inc. Louis & Partners Makovich & Pusti Architects, Inc. Meena Foods, Inc. Mencl Construction Company Inc. Morton’s Landscaping Development Muzik’s NAPA Auto Service Center N B Enterprises, Inc. National Strategic NSSJ LLC Ohio Rehab Center II, Inc.

OnDemand Energy OuterBox Solutions, Inc. Physicians Ambulance Service Inc. PJ Mag Enterprises Red Downtown LLC Reserve Energy Rick Phelps Action Coach Rx Home Healthcare Inc. Securadyne Systems Simply Southern Sides LLC Soza Fitness and Wellness Stewart and Associates, Inc. The Bondee Group The Educational Empowerment Group Thomas Mullane Trionetics, Inc. Twin Lake Homes Tyroler Scrap Metals Inc. USA Firmware LLC Weaver Fab & Finishing Zig Marketing

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CONSTRUCTING

CLEVELAND’S FUTURE Development in Cleveland is on a tear. What does it mean for area businesses?

Public Square

leveland is ramping up for the 2016 Republican National Convention that takes place next July 18 – 21. The event is expected to bring nearly 50,000 visitors By Alicia Hoisington to the area. And $200 million in direct spending is anticipated. nvestment and development is booming in and around As a result, the city has accelerated its Cleveland, which can mean good news for area businesses. work on infrastructure, investing $32 million More investment. More visitors. More spend. in the area. High on the Greater Cleveland But the jolt to Northeast Ohio’s economy doesn’t come HERE’S A RUNDOWN Partnership’s list is the redevelopment of without a cost. With orange barrels popping up all around OF THE PROJECTS Public Square. AND WHAT THEY According to the Group Plan Northeast Ohio, some people might be feeling construction HAD TO SAY Commission, the space will be fatigue: rerouting commutes, dodging stray cones, whitetransformed from four individual ABOUT THEM: knuckled driving as a four-lane road trickles down to one. quadrants into a single park to be used There’s no doubt about it: The investments are changing the throughout the year. The area will include pedestrian pathways, green space for concerts business ecosystem. Is the seemingly constant state of updates and events, areas to sit, a water feature, a really worth it? café and restrooms. The iconic Soldiers and Stakeholders for projects as well as stakeholders for businesses Sailors Monument will stay; however, the shared their insights on some key projects in the Greater group says it will be integrated into the park. Joe Roman, president and CEO of the Cleveland area.

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Greater Cleveland Partnership, who is chairing the acceleration committee for the RNC, says the project was inevitable but the RNC win gave it the push it needed. “We knew it was coming; we knew it was in the works. But the RNC really allowed us to focus on it from a fundraising perspective with an even more intense lens so we could make sure we could get it done in time for the convention,” he says. “We all knew to have this kind of a media opportunity and a chance to change the image of our city to people all over the world, and to have a park come in four months late wasn’t acceptable.” He doesn’t see the work as a major disruption, saying people and businesses were alerted way ahead of time. “People weren’t surprised by what was going to take place, and then they put in plan a variety of different routes around the Square. I think it was disruptive

for a week or two, but now people have learned alternative routes. They’ve planned their trips differently to adjust, and I think everybody’s living with it quite well. And there’s only another 10 months, and we’ll be ready to go.” Lynn Coletto, director of sales and marketing for The Ritz-Carlton, Cleveland, says it’s business as usual for the hotel. The property is located at Tower City in Public Square. “Disruption comes with growth, and we are certainly supportive of wellmanaged growth. At present, we have not experienced any disruption that would measurably impact our business,” she says. “Seeing plans to enhance the city's regional competitiveness and national standing is gratifying for all of us at The Ritz-Carlton, Cleveland. We believe the city has well earned its place on the national stage that the RNC will bring,” she adds.

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Opportunity Corridor

n the works is a project called the Opportunity Corridor, a 35-mile-perhour urban boulevard that will run from East 55th Street at Interstate 490 to East 105th Street in University Circle. The impetus is to help erase the area’s “Forgotten Triangle” nickname due to its lack of economic activity. The boulevard will be about 3 miles long with a median and traffic signals. It also will include: new pedestrian and bicycle paths; tree lawns; landscaping; and vehicular, pedestrian and rail bridges. The motivation: transform the economic conditions and quality of life for residents, according to Marie Kittredge, executive director of the Opportunity Corridor Partnership. The Partnership is managing the project along with the Ohio Department of Transportation District 12, the City of Cleveland and the Greater Cleveland Partnership. “It’s a transportation project to get people from Point A to Point B … but really the road will be a failure if it doesn’t increase the well-being for residents who are in the neighborhoods now,” she says. Anchored by University Circle and the Cleveland Clinic, the Opportunity Corridor comprises approximately 1,000 acres on Cleveland’s southeast side. The project brings new transportation benefits to the area, but it also allows for the potential of new economic development and jobs. “For the businesses that are there now,

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“It’s a transportation project to get people from Point A to Point B … but really the road will be a failure if it doesn’t increase the well-being for residents who are in the neighborhoods now.” — Marie Kittredge, Executive Director Opportunity Corridor Partnership

it’s going to improve their access for vendors coming to visit them,” Kittredge says. “For businesses that might want to expand in the area, it increases the ability to get their product in and out of the neighborhoods. It’s going to streamline access for visitors to University Circle.” But she says the real win is the vacant

abandoned land that will be opened up for new development. When asked if there is any interest from businesses to develop that land, Kittredge says, “It’s early yet because the road isn’t built, but we do get several inquiries a month from businesses that are curious or thinking about it that see some advantage to their business locating there.” Fifteen commercial business structures are affected by the project and will be relocated, says Amanda McFarland, public information officer for the Ohio Department of Transportation of District 12. Those businesses are being compensated for the relocation. For the businesses that do stay, McFarland and Kittredge says there are plans to work with owners to ensure normalcy during construction. “During active construction ODOT and the contractor will be working closely with area businesses to ensure access is maintained for their customers,” McFarland says. “If (business owners) have any questions or concerns they should certainly contact ODOT, and we will be happy to assist them.” Kittredge echoes that advice, saying business owners should not hesitate to make their concerns known, particularly early on because the city and ODOT hold preliminary meetings. “They need to hear what the concerns are and what the issues are so they can be addressed as best as possible,” she says.

Gordon Square

he arts district recently completed a six-year, $30-million capital campaign that sought to beautify the neighborhood; add parking; renovate Cleveland Public Theatre and create a campus; renovate and reopen the Capitol Theatre; build Near West Theatre; attract businesses; and create jobs—all to help stimulate economic activity and neighborhood revival, generate excitement and gain national recognition for Cleveland as a rebounding industrial city. Judi Feniger, president of the Gordon Square Arts District, says the campaign had been decades in the making. “The area had been in decline since the 1970s and, despite strong community interest and formation of the Detroit Shoreway Community Development Corporation which

“The goal of the campaign was to complete five capital projects … to revitalize the neighborhood, using arts and culture to drive economic development.” — Judi Feniger, President of the Gordon Square Arts District

helped stabilize the neighborhood, remained challenged,” she says. “The goal of the campaign was to complete five capital projects … to revitalize the neighborhood, using arts and culture to drive economic development.” She says the investment has aided

local businesses, which now have cleaner, safer and more attractive streets and surroundings — and more parking. She says when the Capitol Theatre reopened in 2009, which had been shuttered for 25 years, people began to return to the neighborhood and new businesses moved in to serve them. “Last year, more than 60,000 visitors continued on page 10

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University Circle

en years in the making has been the Greater University Circle Initiative, which has invested hundreds of millions of dollars into the neighborhoods that make up Greater University Circle. The goal of the initiative was to turn the four square miles into a great place to live, work and visit by linking surrounding neighborhoods and leveraging the economic strength of

the area’s large institutions by using them as anchors. These institutions include: the Cleveland Museum of Art; Severance Hall; the Cleveland Institute of Music; Case Western Reserve University; and University Hospitals. Lillian Kuri, a program director for the Cleveland Foundation who leads the Greater University Circle Initiative, says the project is broad, but the many parts

Gordon Square continued from page 9

the area. He says the theatres started to bring more people to the neighborhood — and the types of people who complement his business — thus driving more customers to his shop. “It’s an easy walk to go before or after a show to come over here,” he says. “With those changes were coming more restaurants. So it started to build that critical mass. “It’s almost like those three institutions (the theatres) are really like our anchor stores at a mall, and we’re all like the little places that … are filling in the teeth. We complement each other and complement those big anchors,” he says. Moreau says 15 years ago Gordon Square was just a place to drive through; there was no draw. That’s not the case anymore. Whereas the places within the area used to be fragmented destinations themselves, now the area of Gordon Square as a whole is a destination that has been put on the map.

came to the Capitol, and many stayed to stroll, dine, shop and eat. During the years of the capital campaign 2007-2014, more than 80 new businesses opened in the area,” Feniger says. Jeff Moreau of Sweet Moses agrees with Feniger’s sentiment. Moreau opened his ice cream and soda shop four and a half years ago in March 2011 in the midst of the Gordon Square redevelopment. “As some restaurants started to move in, most notably Luxe, my wife and I started to kind of frequent the area a little bit more, and we started to see the changes that were taking place. … There was some positive momentum going; the streetscape had just been finished and really just noticeable differences, and it ended up just being a really good fit,” Moreau says. The redevelopment of the area is what compelled him to open a business in

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fall into three major categories that the foundation invested in: Physical development: Projects that were not the responsibility of any one institution but would benefit the whole. For example: the Uptown initiative, the transit project and intersection reconfigurations. Inclusive growth: Taking a bi-local

Sweet Moses is one of the businesses attracted to the area by the ever-growing mix of arts, culture and entertainment venues

approach, looking at programs that could develop ways for hiring local. But it’s not only about hiring local, it’s also about purchasing goods and services locally. Community engagement: The goal is to connect residents with all the things mentioned above, and engage residents to understand that this is a different way to do business via an ongoing partnership between residents and the community. Uptown is included in the initiative. Aimed at improving retail and housing options in the central core of Greater University Circle and on the campus of Case Western Reserve University, the $150-million project includes construction of housing, shops and restaurants on the site of an underused retail area at the intersection of Ford Road, Mayfield Road and Euclid Avenue.

Acting as an anchor for the district is the new Museum of Contemporary Art Cleveland, or MOCA. Kuri said Phase 2 of this district was just completed. The phase included a second building that comprises a bowling alley and additional housing as well as CIA dorms. Additionally, the phase included the relocation of a RTA station, which opened recently on Mayfield Road. “Uptown for us was a holistic way of thinking about not one project, but all that I just mentioned. We invested in all of them. So it’s holistic thinking about how do you make a place that not just serves students but visitors and the workers, too,” Kuri says. When it comes to businesses in the area, Kuri says the biggest change is that 10 years ago, University Circle was a single destination district. “People would come to go to the

hospital, then go home. Or people would come to the art museum, then go home,” she says. “Because of Uptown, it’s become a place where you come and do many things because it’s a district that now provides restaurants and retail and things to do in a walkable environment. “What I think it does is make it possible for small businesses to have the seven days a week and foot traffic to consider growing your business,” she says. But Kuri says this type of development can’t be done in silos; it includes everyone: the businesses, the residents and the community. “It’s about understanding the relationships and thinking holistically about investments, districts, planning, retail, business, residents,” she says. “When you plan this way and partner this way, it lifts all boats, and everybody actually can benefit.”

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Decision Time Voters will be asked to decide on a number of key issues on November 3rd, ranging from legalized marijuana to supporting arts and culture organizations in Cuyahoga County. By Shawn A. Turner

oters next month will be asked to decide on a number of local and statewide issues. To help cut through the noise, COSE Update is taking a closer look at some of these issues. ISSUE 3

LEGALIZED MARIJUANA ResponsibleOhio wants to grant blanket legalization of marijuana for medical and recreational use. This would make Ohio the first state to legalize recreational and medical use of marijuana at the same time. In the small number of other states that legalized recreational marijuana (four states and the District of Columbia), medical marijuana use laws were in place first. Passage means small businesses would have to treat medical marijuana like prescription drugs and it could require employers to accommodate medical marijuana. Kevin Johnson, Chair of COSE’s Advocacy Committee, says there is too much uncertainty surrounding the initiative. “I’ve always been a little insulted at the audacity to put 12 • COSE Update • SEPTEMBER/OCTOBER 2015

recreational and medical use of marijuana on one issue in the state of Ohio. There are true issues with ResponsibleOhio’s plan. There is no precedent for putting both through at the same time.” ISSUE 2

MONOPOLIES & OLIGOPOLIES A separate, but related issue would limit monopolies and oligopolies in Ohio. If approved, voters would still have the opportunity to suspend the prohibition on monopolies and oligopolies for specific future issues and vote on whether they are in the best interest of the state.

ISSUE 1

STATE LEGISLATIVE REDISTRICTING Gerrymandering, where the majority party has the opportunity to slice the map to best suit its preferred candidate’s odds of winning, has been a part of Ohio politics for a long time. One group is trying to change that. Fair Districts for Ohio is advocating for an improvement in the way the state approaches redistricting. The proposal seeks a fairer redistricting process. It would create a seven-member, bipartisan panel that must have at least two members from the minority party. For a redistricting plan to go through, two votes from each party would need to be secured. The idea is to keep communities whole, not split up. The ballot measure has support from Republican and Democratic lawmakers and a wide array of organizations around the state. ISSUE 8

ARTS & CULTURE An arts and culture renewal tax is on the table for Cuyahoga County. The measure would continue to provide a revenue source for Cuyahoga County’s arts and culture scene. The many arts programs offered for free in Cuyahoga County is a testament to the levy’s impact, says Tom Schorgl, president and CEO of the Community Partnership for Arts and Culture. The issue would continue the current 1.5 cents tax per cigarette sold in Cuyahoga County to support arts and cultural organizations.

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COSE'S POSITIONS After much discussion and debate, COSE’s stance on the following issues are: ISSUE 1 COSE supports Fair Districts for Ohio, the redistricting proposal

ISSUE 2 COSE supports the constitutional amendment limiting monopolies and oligopolies

ISSUE 3 COSE opposes the legalization of marijuana effort

ISSUE 8 COSE supports the Cuyahoga County Arts & Culture ballot measure

VOTE

YES YES NO YES The tax, approved in 2006, funds art education, programming in neighborhoods and more. “Over half of the programs offered that have received support have

been free, so access has increased exponentially. People from all walks of life in every corner of Cuyahoga County have seen those results and have connected with it personally,” he says.

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Cash Convention $200 million is up for grabs when the RNC comes to town next summer. Here’s how to get your share. By Shawn A. Turner

he Republican National Convention that whirls into Cleveland next summer will be the party of the year for the GOP. So, they’re probably going to need balloons, right? That’s where Melissa Miller comes in. Miller is the owner of Pink Gorilla Balloons in Cleveland. She’s

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betting RNC attendees will be in a festive mood when they overtake Northeast Ohio in about nine months. “One of the biggest things they do is order balloons,” she says. That’s why Miller turned to the RNC’s supplier portal, a guide featuring local businesses likely to be in demand during the three-day convention being held July 18 – 21. COSE was part of the team that helped create the supplier portal, designed to help small businesses connect Miler with opportunities they might not otherwise come across. The portal is a long-term asset small businesses will be able to utilize for other events the region attracts. Miller isn’t alone in jumping to the supplier portal. As of early August, more than 700 companies were signed up, according to Mike Mulhall, VP of partnerships at Destination Cleveland. Destination Cleveland has been involved in working to get the guide in front of GOP

attendees. “This is my life lately,” he says. Mulhall says the guide — free for companies to add their name to — features scores of caterers, transportation companies, women- and minority-owned businesses, and more. “Some delegations specifically look for this,” he says. “They don’t necessarily look for a florist, but for a minority-owned florist.” Business bump Matt Fish, founder of grilled cheese restaurant Melt Bar & Grilled, says the restaurant will soon start making its convention plans. “I know we’re going to get a bump from it,” he says. “I know we’ll be active in promoting Melt. We’re on the mind of a lot of travelers coming to Cleveland. We and a lot of the other chefs in Cleveland get a lot of notoriety.” Fish says the Convention will feature prominently in that discussion. “We want to increase our presence on the Internet and in the cyber world,” he says, “so when people are searching for places to go in Cleveland when they’re here for the RNC or after or before, hopefully we’ll show up a little more.” And there’s good reason for companies to get their business plans in place for the RNC. Diane Downing, COO of the Host Committee for the RNC, related during

H H H H H H H H a Supplier Forum held in June that the economic impact of the Convention on Cleveland could be $200 million. Pink Gorilla plans to be proactive in trying to get its share and getting onto the supplier list is just one aspect of that strategy. “We’ve been training,” she says. “We know it will take a small army. We’re hiring and training part time staff so we can be prepared on a moment’s notice.” How to leverage the Convention Miller’s plan to start early is smart, according to Mulhall. The first thing businesses should do is consider getting their business onto the supplier listing, found at https://www.2016cle.com/ become-a-supplier. “It’s just a 10- or 15-minute

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investment of time and most of the questions are pretty straightforward,” he says. “The biggest challenge is the description.” Mulhall is referring to the 100-word description businesses on the listing use to describe themselves. For many companies, boiling down what it is they do into just a few sentences can seem impossible. “Think about your business,” she Mulhall advises. It’s your first chance to create an impression.” A website link is included with the listing, Mulhall says. “Make sure your website is up to snuff.” Companies don’t need to outthink

themselves when coming up with the language used in the description, Mulhall says. “At some point,” he says, “it just becomes communicating with the customer.” Beyond the supplier list, Miller says it’s crucial business owners do their homework prior to the big party. Find out how your industry was used during past conventions. So, what has Miller learned? She knows she has to reach out to area hotels and restaurants — and not just for the time period encompassing the event. “A lot of people will be doing their own side events,” she says. “A lot of stuff will be going on earlier. Some restaurant owners have had their restaurant booked for months.”

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Akron’s New Direction By Kristen Hampshire

hange is good. That’s one common platform Akron mayoral candidates share in a dynamic election year, following the abrupt resignation of Don Plusquellic, who held office since his first run in 1987. That’s 28 years as mayor, on top of 13 years serving as city councilperson. This November’s election would have been Plusquellic’s eighth term. The race is “unique” because of former Mayor Don Plusquellic’s tenure — and big personality that “sometimes ruled the day,” says Brad Wright, Greater Akron Chamber of Commerce vice chair of governmental affairs and partner in charge at the Roetzel & Andress Akron office. “Don Plusquellic did a ton for the community,” Wright says. “I think what the next mayor will need to do is work more with the business community, and communities in general, to fully understand where they want to go and what is necessary for them to thrive in their businesses and their lives. And that will require more collaboration.” Collaboration will be one key measure of success for Akron’s future mayor, says Tia Ramlow, president of Great Work! Employment Services who also serves on the government affairs committee and small business council at the Greater Akron Chamber of Commerce. “There has been a lot of division in the city government for a long time between the council and mayor’s office, and if we could be more cohesive and bring people together — businesses, government, the community — that would be ideal,” Ramlow says. Collaboration is one thing, but business owners in the community also 16 • COSE Update • SEPTEMBER/OCTOBER 2015

Much is at stake for Akron as the city is on the cusp of electing a new mayor for the first time in nearly three decades. Business owners are speaking up about what they want from the new mayor — and candidates are sharing their views, too. want to see workforce development, continued investment in infrastructure, and smarter spending As such, the upcoming election also holds special significance for the city’s small businesses. “It’s difficult for small businesses to take time out to be heard in (political) settings,” acknowledges, Jeffery Walters, a managing director in the financial services division at CBIZ, Inc., and chairman of the Greater Akron Chamber of Commerce. But it’s not just collaboration the new mayor will have to put at the top of the agenda.

Improving labor Retaining and attracting talent is a top priority for communities that want to grow existing businesses and usher in new ones. Workforce development is critical for Akron, Walters says. “The city can provide resources and, infrastructurally, the amenities that will help attract talent for businesses,” he says. Ramlow identifies an investment in drug and mental health treatment programs as one method of raising the city’s potential workforce. These programs can give people struggling with social, mental and drug issues a chance to heal and stay employed, she says. “Turnover is one of the biggest issues that impacts people — they want to get a job or they have the intention of getting a job, but the ability to stay employed is a problem,” Ramlow continues, noting some workers her company places at businesses might only last a few weeks and lose the position because of poor attendance or conduct because of problems, for example, with drugs or alcohol. Improving the labor pool means getting to the core of these issues and addressing them with programs that can help people stay employed, Ramlow says. “I do think people want to work, but their life gets in the way,” she says.

H H H H H H H H Continuing development A strong urban core is vital for business. “People understand and appreciate having an environment downtown that helps attract talent to the city,” Walters says, adding the next mayor should have the vision necessary to help the city grow. Wright adds, “Downtown revitalization and growth is really important because major employers and small businesses want a livable place, somewhere they can not only work, but where they can play and go out to eat and enjoy all the things a neighborhood has to offer.” Communities such as Highland Square and North Hill are positive examples of how developing neighborhoods in and surrounding Akron can spark economic development. “The expansion of the University of Akron into downtown has been beneficial,”

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Wright adds. “We see more businesses and restauarants along the main route in Akron, but for a city like ours, there is definitely a lot of work to be done. There is still not a ton of livable space inside downtown Akron where people can live so they can work there and also conduct their lives.” Spending smart Business owners must re-evaluate their budgets and make cuts, reallocate funds, figure out ways to get their work done with less. City governments should do the same. “We need some fresh eyes on the spending and to ask, ‘Does this [program] make sense? Is it doing what it was set up to do?’” she says. Ramlow, like many voters and small business owners, always wants to see more funds go toward programs vs. administration. “As a business owner, I’d like

to see a mayor who is fiscally responsible and takes a look at current programs. Before coming back for additional tax revenue, [administration] has to look internally at what they are getting for what they are currently spending,” she says. Small business owners are seeking financing opportunities — capital support. “Akron has a pretty good foundation with the Akron Global Business Accelerator and things going on there, but we need to make sure candidates are committed to supporting those efforts,” Walters says. Small business owners are seeking financing opportunities — capital support. “Akron has a pretty good foundation with the Akron Global Business Accelerator and things going on there, but we need to make sure candidates are committed to supporting those efforts,” Walters says.

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What The Candidates Say

COSE Update talked to the four candidates running for mayor (as of press time in late August). Each candidate was asked to provide their take on the importance of collaboration and also one other issue impacting the city’s small businesses.

Dan Horrigan (D) Summit County Clerk of Courts

On collaboration: “I see a disconnect between the city and local business owners … I will work to re-establish those relationships and forge new ones.” “We need to start from the bottom upwards to ensure the city knows how best to support our businesses. Further, we must develop a comprehensive strategy for our neighborhood retail districts.” On talent: “Every day, Akron is challenged to be better than a hundred other cities — not just in the United States, but all over the world. The city can assist in attracting the talent and technology businesses need to thrive.”

Mike Williams (D) Akron Councilman-at-Large

On collaboration: “Small businesses feel like they don’t get enough attention from the city government and, in part, the economic development department. They are looking for support from city government—and I look at small- and medium-sized businesses as the key economic drivers in our communities. We should be communicating regularly with our businesses to assess their needs.” On development: “In Highland Square, the residents in that area helped lay out a plan, follow that plan, push the plan and made sure that it actually happened. This year, we opened up the Mustard Seed Market and things are going beautifully in that community. It is my intention to use that as a model … that layout should be dictated by the businesses and residents.”

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Sage Lewis (I)

Eddie Sipplen (R)

President, SageRock

Defense Attorney

On collaboration: “There is a severe lack of communication between the people of Akron and the government. It’s a very insular group, and after three decades of the same mayor, that breeds a great deal of inwardness and lack of integration with outside forces.”

On collaboration: “Our mission is to build a better Akron … and to make it a more business-friendly environment where entrepreneurs can grow and thrive. If we help them by changing our policies and processes, we can do that. One thing the city can do is to help them develop a business plan that will help them with financing.”

On small business: “Akron focuses pretty heavily on the big companies here, and they deserve attention, but there is rarely any major mention given to small businesses. I think some love to small business owners would be a positive change.”

On finances: Sipplen will institute an online checkbook system so the public can view the city’s finances. “That way, the city can see how we are spending our money, down to the checkbook level.”

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SKY’S LIMIT THE

De-hubbing. Service cutbacks. The region’s airports have each dealt with their own challenges over the last few years. Here’s how they’re soaring back. By Shawn A. Turner

t sounds like the kind of call an airport director would get during a nightmare. One of the world’s largest airlines calls to say they are ripping their hub out of your airport. Ricky Smith, the former director of Cleveland Hopkins International Airport, received that call in 2014 when United Airlines de-hubbed the airport. But the news didn’t cause Smith to become unhinged. Far from it, actually. “Over the last eight years prior to the United announcement, anytime I have been asked (about a potential United dehubbing), my response was always that if United de-hubs, someone else will come in and pick up the demand,” Smith, who now serves as CEO and executive director of the Maryland Aviation Administration, says. Still, airports such as Hopkins can’t just sit back and wait for an airline to fly in out of nowhere to pick up the slack.

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“It’s understanding the demand and how that demand is characteristic of a particular carrier so they can be informed and ready to go,” he says. “There’s a cost to mobilizing,” he continues. “The airlines want to come in and get established but the airlines don’t want to take a bath in the process of doing that. You have to subsidize some of their space needs. We also have a cooperative marketing fund where we will help them market that route. That goes a long way to helping airlines come in and establish themselves.” Managing costs for airlines, such as the fees paid for de-planing, make it easier for airlines to come in and establish new service. “We’ve done a lot of work to manage our costs.” The work Hopkins’ management team has done appears to be paying off. The airport is on track to top 9 million passengers during 2015 after hovering just south of that number for the past

couple of years. Some airlines have stepped in to fill United’s void. Frontier Airlines, for example, added new non-stops in 2014 between Cleveland and Seattle and Orlando, Florida. Smith is proud of how Hopkins has rebounded. “Some have said it is the strongest response to dehubbing in modern history.” Marketing to airlines and customers While not facing as drastic a situation as a de-hubbing, Akron-Canton Airport has dealt with some adversity as well. The airport’s dominant carrier, the former AirTran Airways, was acquired in 2011 by Southwest Airlines. VanAuken While the addition of Southwest was welcomed, the carrier decided to reduce frequency. As was the case at Hopkins, however, Southwest’s decision opened the door for others—namely United, American Airlines and Delta Air Lines—to grow. Further, Allegiant Air launched new service out of Akron-Canton in May and now serves five new markets, according

to Kristie VanAuken, senior VP and chief marketing and communications officer. So, what does it take for an airport to court airlines? “We first lay out a compelling business case,” VanAuken explains. “Northeast Ohio is experiencing a renaissance and we are proud to be part of it. Then we build a relationship that helps the airline, airport and community be successful. That includes short-term marketing incentives and fee waivers.” Appealing to individual flyers is, of course, also a key ingredient in an airline’s success. VanAuken describes the AkronCanton team as being “strategic marketers.” “We focus on the exceptional experience our customers rave about and on our people,” she says. “It is an emotive, authentic approach.” Hopkins has also bolstered its marketing efforts via its “Going Places” campaign. Other initiatives have included muscling up on its search engine

An Allegiant Air jet sits on the tarmac at AkronCanton Airport, which launched new service out of the airport in May.

optimization efforts and maintaining an active social media campaign. “There are four airports in this (Northeast Ohio) area,” Smith says. “It is critical that we continue to market ourselves aggressively.” The bottom line Increasing non-airport revenue is also a key focus of Hopkins, Smith says. Hopkins for example began the process of razing its former 40-year-old longterm parking garage in 2013 as part of

a $24-million plan to renovate parking at the airport. The effort included the addition of “smart parking” technology in the newer, short-term garage. “It’s the highest revenue source we have at the airport,” Smith says. “Our parking revenues are growing through the roof. We have a demand for parking now that quite frankly we’re trying to catch up with.” Other revenue sources for Hopkins includes advertising in the terminal and another airport-owned gas station and restaurant off Brookpark Road are in the planning stages, as well. But the biggest factor on the balance sheet is on the expense line. “We have to maintain our cost structure,” he says. “That allows airlines to operate services here at a competitive, low cost. That will always be important. That’s how we maintain our competitiveness. That’s how we will keep fares down.”

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Call COSE’s Energy Team today at 216-592-2222 to learn which energy projects might be right for your business.

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