Crain's Cleveland Business

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VOL. 37, NO. 13

MARCH 28 - APRIL 3, 2016

REAL ESTATE: Tower City Breaking down Dan Gilbert’s big buy P. 4

MANUFACTURING: Resolve TimkenSteel sturdies itself post-spinoff P. 5

CLEVELAND BUSINESS

SPORTS BUSINESS

Cleveland’s highest-paid athletes PAGES 16-18

TECH: Ads on wheels

HEALTH: Benefits

BIZ OF LIFE: Party!

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Hospitals also grapple with

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plan in motion — P. 6

rising costs of plans — P. 8

livened up museum — P. 32

Source Lunch with Bill Ryan, president of the Center for Health Affairs — Page 34

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z MARCH 28 - APRIL 3, 2016 z CRAIN’S CLEVELAND BUSINESS

Looking to Detroit for Tower City clues

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The Avenue mall at Tower City Center was opened in 1990 as real estate developers explored the concept of filling the hole in the donut.

Enclosed malls often encircled older cities. At the time, downtowns offered fresh opportunities for expanding retailers.

As billionaire Dan Gilbert launches the remaking of the Avenue after buying it from original developer Forest City Realty Trust, one of his biggest advantages — besides his pocketbook — may be that there’s less of a hole in another donut.

Residential development in nearby neighborhoods and the past decade’s surge of downtown lofts have created a larger base of wellheeled shoppers nearby, though the area still has far to go to win retail attention. The residential growth has joined with the passion for chef-driven local dining to reignite the retail environment.

Moreover, Gilbert’s JACK Casino and Cavaliers basketball team have added to the action.

Gilbert’s Bedrock Real Estate, which holds the Avenue, has been heavy in creating expectations after making the $56.6 million investment. Gilbert promised an environment that will make Clevelanders proud. Bedrock has been light on details; requests for specifics were rebuffed.

However, Gilbert’s retail efforts in his Detroit hometown offer clues.

Nike is opening one of its community stores in a Gilbert-owned property on the Motor City’s historic downtown shopping street, Woodward Avenue, where he owns a cluster of buildings. UnderArmor is bound for Detroit with a store. And Wahlburgers, the burger chain associated with movie star Mark Wahlberg, is talking to Bedrock about a Greektown casino area site.

Where prior Avenue owner Forest City is a Cleveland-based national real estate developer that had retail relationships that it used to originally populate Tower City with the likes of J. Crew, Barney’s and Banana Republic, Gilbert has less national retail clout. But he or his partners have invaluable relationships with the wealthy and celebrities.

Still, there will be a bit of a learning curve. Although Bedrock’s website boasts of 160 office and retail tenants in downtown Detroit, his retail is primarily in storefronts of office buildings he has acquired. Luckily, those are targets of trendy retailers.

‘Dead serious’ The enclosed Cleveland mall of 330,000 square feet that sits atop the city’s transit hub is a different animal from street-level storefronts.

Expect Bedrock to study the situation carefully, prepare a plan that

CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 Phone: (216) 522-1 1383; www.crainscleveland.com

Reprints: Krista Bora

212-210-0750 kbora@crain.com

Gilbert embraces, and then execute it. That is how Jim Bieri, a principal of Stokas Bieri Real Estate, a Detroitbased national retail tenant broker, forecasts things will play out here.

“Gilbert’s organization is dead serious about doing the right thing with retail,” Bieri said. “Rock Ventures dove into retail in a big way in Detroit, controlling much of Woodward Avenue in the core of downtown. He will decide what type of environment he wants to create, hire someone who knows that environment, and take time to execute it and do it well.”

Bieri acknowledges enclosed malls are a management and leasing challenge, but he said the founder of Quicken Loans knows how to run big operations.

“The man runs casinos,” Bieri said. “Take it at face value. He’s a hands-on guy. He’s not sitting in an ivory tower. He goes to meetings.”

Every city is different In the years since Avenue opened, enclosed malls have become an often embattled property type. Retailers flock to dominant malls in the highest income areas and fastest growing areas. The movement leaves enclosed malls in older, lower-income neighborhoods suffering.

Retail also suffered mightily in the Great Recession and is on a difficult comeback trail.

In downtown Columbus, the City Center enclosed mall was put in by Columbus-based Glimcher Co., now W.P. Glimcher, in 1989. Described as a gem at first and forlorn later, the 1.3 million-square-foot mall was demolished in 2009 to provide a green space. However, in Cleveland that is not an option. Tower City houses the train station and is intertwined with the casino, two hotels and four office buildings.

Jesse Tron, spokesman for the International Council of Shopping Centers trade group, said the fate of City Center is the exception rather than the rule for downtown malls.

He said each metropolitan area and property differs. Despite the raft of dead malls, as a whole the industry has rebounded and occupancy nationally is at 94%.

Meantime, retailing has evolved.

Downtown revitalization has captured the attention of retailers. Small format stores are being developed by Target and Kohl’s to catch the wave.

As a group, Tron said, retailers are more flexible in sizing up locations than before 2008.

“Pre-recession, retailers would say this is the box we are and it was always replicated,” he said. “Now there is a lot more willingness by retailers to adapt to the area.”

Mix of big and small Besides big brand names, the other way to fill retail space is with popup stores and fledgling retailers. In downtown Cleveland, the most engaging example is the redo of the

languishing Colonial Marketplace as Fifth Street Arcades by Cumberland Group, which has offices in the 19th century arcade complex.

Dick Pace, Cumberland CEO, says Bedrock and Forest City know more about retailing than he ever will.

“What I have been able to do is take a small space and develop a local formula with chefs and retailers,” said Pace, who recruited one of his merchants at Cleveland Flea, an arts-oriented neighborhood flea market. “We have nice demand and a waiting list for our spaces.”

He said such an approach might work for only part of the much-larger Avenue. Several of Fifth Street’s retailers are in just 200 or 300 square feet of selling space.

“Most of the Tower City spaces are designed for larger national brands,” Pace said. “National brands have already started to look again at downtown Cleveland. What Gilbert did in Detroit has every chance of succeeding here.”

Pace said the advent of the Heinen’s grocery and Geiger’s clothing store at Geis Cos.’ The Nine has helped downtown gain retail attention. He said there also is a different mindset among real estate owners today than “the zero-sum game” when Tower City and the forlorn Galleria were new.

“We really want to expand the market downtown,” Pace said. ”We really want to see everything grow.”

Have an idea?

The grow-your-own business and retailer is a facet of Gilbert’s mode of operation. Gilbert set the tone for experimentation on Public Square when he tweeted on March 24: “The Avenue Shops at Tower City can be a special one-of-a-kind downtown CLE destination. What’s your best idea?”

How much reconfiguration The Avenue will need is an open question.

One longtime downtown retail specialist, who spoke on grounds he not be identified, expects to see Gilbert seize an opportunity to enlarge casino-related entertainment options.

“Replace the fountain on the main floor with an event venue,” he said.

The north end of the mall closest to Public Square might even serve as gaming space — if state authorities approve it.

Stephen Taylor, senior vice president of restaurant and retail at CBRE Group, suggests Gilbert consult with MRN of Cleveland, the developer of the East 4th Street Neighborhood, for ideas. (MRN officials declined comment.)

Taylor, a veteran of 15 downtown restaurant leases, emphasized Gilbert will need help from civic leaders and government to tackle factors hobbling downtown, such as lack of cheap parking for restaurant and retail workers and visitors.

“What Bedrock has done in Detroit is remarkable,” he said. “Downtown Cleveland is on the radar of a lot more retailers. It’s going to be exciting.”

Volume 37, Number 13 Crain’s s Cleveland Bus sines ss (ISSN 01972375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s s Cleveland Bus sines ss, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912.

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TimkenSteel sees innovation leading it to steadier ground

BY RACHEL ABBEY MCCAFFERTY rmccafferty@crain.com @ramccafferty

In the less than two years since TimkenSteel Corp. spun off from Timken Co., the Canton-based steelmaker has been working hard to establish its own name in the industry.

The company is doing more than just churning out your average steel.

Instead, TimkenSteel is looking to become a design partner with its customers and is offering advice on how they can use its steel to make their products last longer.

Since the spinoff, TimkenSteel has faced a number of struggles, including high-profile safety incidents and a sharp decline in stock prices, but officials feel the company is well-positioned for the future despite some analysts’ talk about a possible sale down the road.

TimkenSteel became an independent company in July 2014 after significant shareholder pressure. In the 20 months since, it has faced a tough market as oil prices have dropped, the dollar has strengthened and imports have flooded in.

The company’s stock prices initially climbed after its spinoff, reaching a high of $49.94 on Sept. 10, 2014. But they have fallen pretty consistently since, reaching a low of $3.99 on Jan. 11, 2016. At the close of business on Thursday, March 24, the stock was at $9.04 per share.

Shawn J. Seanor, TimkenSteel executive vice president of sales and business development, thinks the company was well positioned when it spun off from Timken, before the market downturn. Since then, he said, TimkenSteel has broadened its base as new supply chains have taken hold. New business — including new customers, as well as new sizes and grades of steel — has made up 30% of the company’s business in the past five years, company spokesman Joe Milicia said in an email.

One way the company is looking to stand out is its ability to model the performance of its steel in different products, letting customers know how long they might expect a product to last. Raymond V. Fryan, vice president of technology and quality, said this kind of capability is unusual for a steelmaker, as most just quote a project based on the specs provided. TimkenSteel wants to show companies why their plans might not provide all the benefits they want. “That’s a real big opportunity for differentiation for us,� Fryan said.

Clean steel Virtual component fatigue modeling allows TimkenSteel to compare how its steel will perform in a particular product against that of its competitors, said John C. Murza, senior manager of product and process technology. The so-called cleanliness of the steel, which TimkenSteel prides itself on, is critical here for a few reasons. Steel that is not as pure may be more likely to crack because of the particles left in the metal, while purer steel can let a company use less of the product.

TimkenSteel has been clean steel experts for decades, Fryan said, but that expertise was mainly used in Timken’s bearings. And while it was useful to the bearing and gear maker, it’s part of TimkenSteel’s

“lifeblood,� Fryan said. TimkenSteel’s goal now is to apply that expertise to a broader customer base.

The company doesn’t want to offer the lowest-priced products, it wants to be the “highest value,� he said.

TimkenSteel has the ability to do virtual and physical modeling at its new technology center on the company’s Canton campus. The center pulls together assets that were formerly in separate areas, Murza said.

The 20,000-square-foot center has about 26 employees running its high-tech equipment. In addition to modeling, the center can examine the properties of the steel produced and even melt small batches for SEE TIMKENSTEEL, PAGE 36

Mike Meronoff, standing, and Dan Gynther work the controls of TimkenSteel’s new scanning electron microscope. (Contributed photo)

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The Event Destination

A few weeks ago, Ads in Motion bought a box truck covered with three giant video screens.

Within a matter of days, president Mike Matonis was driving it into the parking lot of the I-X Center, where a Donald Trump rally was taking place.

But the company’s very first customer wanted to support another GOP candidate: All three screens displayed ads suggesting that Gov. John Kasich has a better chance of winning the general election.

Naturally, Matonis was told he had to leave the I-X Center parking lot. So he moved his truck onto a nearby street.

You can do that, when your electronic billboard has wheels.

Ads in Motion thinks plenty of other advertisers — businesses, nonprofits and politicians alike — would pay to use its new mobile messaging machine.

Thus, the Westlake-based company has already ordered another one.

And it plans to buy many more, according to Lee Zapis, who invested an undisclosed amount in Ads in Motion and is helping Matonis run the company. Ads in Motion also received an investment from one of his colleagues at Zapis Capital

Ads in Motion investor Lee Zapis believes the company could expand its service to 15 to 20 trucks within the next 18 months.

(Contributed photo) Group, Rich Bongorno.

Zapis thinks that the company could have 15 to 20 trucks in threeto-five cities within 18 months.

Why so optimistic?

Sure, there are trucks that double as electronic billboards in other cities. You might’ve seen one if you’ve been to Las Vegas recently.

But the number of trucks out there is still pretty low, Zapis said.

Plus, Ads in Motion has experi-

ence in the outdoor advertising industry: Matonis has spent a few decades selling ads on billboards and buildings — digital and analog.

Zapis was one of his frequent customers back when he was president of Zapis Communications, which owned and operated several radio stations that were sold in 1999 to a company that got bought by Clear Channel Communications.

Many of the other truck owners

Ginn Academy program has mechanical mindset

BY RACHEL ABBEY MCCAFFERTY rmccafferty@crain.com @ramccafferty

Dan T. Moore thinks incorporating more hands-on, mechanically minded work into Cleveland’s classrooms is “terribly important” for both the city’s industry and its student body. That’s why he’s one of the people working to get a new program focused on those kinds of skills off the ground this summer at Ginn Academy.

There are an enormous number of available jobs, and the industry’s ability to compete is directly connected to how effective its workforce is, said Moore, the CEO of Clevelandbased Dan T. Moore Co., which houses a number of innovative manufacturing companies.

“There are tons of these jobs available, and there’s just no one to fill them,” he said.

And that type of hands-on curriculum gives students who are more mechanically minded — like he was — something to get excited about. One of the reasons students drop out is because school doesn’t mean anything to them, Moore said.

That’s why the Dan T. Moore Co. is helping to start the Mechanical Mindset Workroom at Ginn Academy in Cleveland this summer. The curriculum is still in the process of getting approved, and the people behind the proposal are still raising the money to fund it. But the plan is to include summer camps for students, as well as lessons woven throughout the school day.

The proposed curriculum includes

sections on topics ranging from soldering to building circuits to welding in the ninth grade. As students move into older grades, the proposal has them learning about advanced robotics and industrial lathes, as well as taking on internships to gain on-thejob training. In the first camp, expected to be held this summer, students would get the chance to build a bicycle, which they could keep. The program also plans to take on a trip to see “the part of the city they don’t normally see,” Moore said, and get a sense for how big the city really is.

The idea behind the program came after the Dan T. Moore Co. started working with interns from a local high school — the students lacked mechanical skills, which led to frustration. The company decided it was time to “dig a little bit deeper,” Moore said.

“We need to have an alternative way to do things,” Moore said. “And working with your hands is fun.”

Ideal venue Moore said Ginn Academy would be a good place to start because its culture will allow companies to focus on sorting out program concerns early. Ginn Academy has a relatively strict approach to academics, but also offers a good deal of support to its students. The school’s graduates are disciplined but still struggle to find jobs, he said.

The number of students the program would be able to serve at Ginn Academy will rely on funding and interest, Moore said, though he expects each class to have about 25 students.

The proposed curriculum puts an estimated cost on the program of $1.9 million, with the majority of the costs in the ninth grade installation and rollout. The program is looking to renovate some of Ginn Academy’s classrooms and turn them into a work space.

Moore said the group behind the program is seeking foundation and government funds, in addition to private and industry dollars. The Dan T. Moore Co. likely will contribute about 10% of the total cost, he said, and there are other companies involved. Jack Schron, CEO of Cleveland-based Jergens Inc., a maker of tooling components, fasteners and other products, is one of the industry partners. He said he’s always excited about new educational opportunities for students in Northeast Ohio, and the company’s financial contribution to the program likely would be taking on interns.

He and Moore have been talking about the project for about a year. It would be an option to help students learn tangible skills without the debt from college. Ginn Academy prepares students in so many ways, Schron said, but this program would give them a chance to use both “their brains and their hands.”

Ideally, the program would help students who don’t go to one of the trade-focused schools get the chance to earn some experience in the STEM disciplines. Moore said that the program at Ginn would be like a trial, but if it worked, he could see it being expanded to the district’s other high schools or junior high schools rather inexpensively.

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CRAIN’S CLEVELAND BUSINESS z MARCH 28 - APRIL 3, 2016 z PAGE 7

g at rapid rate don’t appear to have that much experience in the outdoor advertising industry, based on information that Zapis and Matonis gathered from the company that built their truck.

Via email, the manufacturer passed along a few lessons its customers had learned. The last thing he wrote?

“Advertising sales is hard.”

“That’s the one part of our business that we understand,” Zapis said.

Matonis chimed in: “That was the least of our worries.”

“Can they keep up with us?”

Mike Matonis, Ads in Motion president, on truck manufacturers Of course, they’ll have to prove that they can indeed find advertisers. They said that most customers will probably want Ads in Motion to park the truck at events instead of driving it around. Businesses could use the truck for events like grand openings, and nonprofits might rent it out to deliver messages during a fundraiser. Ads in Motion also hopes to win business from politicians and political groups visiting town for the Republican National Convention in July.

Customers wouldn’t even have to

use it for ads. The truck’s LED screens could be used to show movies or play video games.

Matonis said he was scheduled to install a modem in the truck over the weekend, which would allow him to change the ads on display from afar.

This week he plans to install a sound system.

The truck certainly caught Steve deMoulpied’s eye. Thus, he thinks it might help his online grocery delivery service catch the eyes of customers. PrestoFresh is the second advertiser to use the Ads in Motion truck. Now the company is collecting data to see if the ads are helping boost traffic to its website.

“We have to do something to grab people’s attention,” he said.

Even if Ads in Motion succeeds in attracting customers, it could run into other problems. For one, local governments could crack down on electronic mobile billboards. So far, however, local communities seem more interested in using the truck for their own events, Matonis said, adding that the company doesn’t run video ads while the truck is moving.

If anything, he’s wondering how long it might take for Ads in Motion to acquire new trucks.

It took longer than expected to receive its existing truck, which is highly customized.

“Our biggest concern right now is the manufacturers — can they keep up with us?” Matonis said.

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Hospitals also struggle

BY LYDIA COUTRE lcoutre@crain.com @LydiaCoutre

Just a couple of months into a newly focused effort to contain the costs of health care coverage for its employees, Summa Health System already is having preliminary conversations with other employers about how they can do the same.

“They’re all very interested, I would say, and anxiously awaiting to see how this works,” said Mark Terpylak, president of NewHealth Collaborative, Summa’s accountable care organization.

The steps Summa is taking — from specialty disease management programs to embedding an employeededicated nurse in its network — have been a couple years in the making. Some changes in that time have led to “fairly small” cost increases in the 4% to 5% range, Terpylak said, but he wants to see that fall to zero.

Through a holistic approach started Jan. 1, Summa aims to completely flatten its health care costs this year.

About 90% of employers face increases in the premiums they pay for employee health plans, according to the 2015 Arthur J. Gallagher & Co. Benefits Strategy and Benchmarking Survey. And with nearly one in four companies seeing double-digit rate increases, employers are searching for ways to keep those increases in check. Hospitals are not immune to the rising costs of providing their employees with health care coverage. And some see their approaches to flatten costs as translatable to other businesses.

The Cleveland Clinic already has commercialized its wellness offerings and is considering doing the

same with its benefit plan design, which has saved the Clinic about $75 million since 2010, said Paul Terpeluk, medical director of the Clinic’s employee health services.

University Hospitals began offering commercial ACOs after seeing success with such a model for their own employees, said Nate Hunt, UH’s ACO director.

“I think employers today are struggling like everybody, right?” he said.

“Health care costs are unsustainable, and they need help managing those.”

Terpeluk said hospitals may not be the best place to find these new approaches, with a lot of energy focused on other regulations and requirements. Many haven’t taken the time to step back and focus on employee costs, he said, adding, “It’s an afterthought right now.”

Rick Chelko, president of The Chelko Consulting Group of Westlake, which consults large employers on health plans, also questioned hospitals’ ability to find solutions to the soaring costs of benefits and blames increasing access — from telemedicine to more emergency rooms — for rising costs.

But those who do address the issue in creative ways could have successes, he said. It’s much easier for hospital systems to try certain tactics than it is for an employer with hundreds of locations across the country.

Others note that hospitals have some flexibility to fine-tune approaches and tweak programs to find what works best.

Terpylak said it was time for Summa to translate what it applied to its Medicare ACO to its own employees.

“We’ve realized we’ve kind of had some success and feel a little bit more comfortable in the Medicare space,” he said. “But what is it we can do for

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commercial populations? How do we prove that out? How do we refine it?

How do we evolve it? And frankly, there’s no better way to do that than with our own associates.”

Historic efforts Employers’ efforts thus far to contain costs haven’t been particularly successful, as is evident by the rising costs, Chelko said.

“Costs continue to go up at a much higher rate than the general consumer price index, and it eats up more and more of both the corporate expense dollar as well as individuals’ take-home pay,” Chelko said.

In Gallagher’s study, which surveyed more than 3,000 organizations nationwide, respondents were asked what strategies they use to mitigate health care costs.

“It’s been the same answer for a long time,” said William F. Ziebell, executive vice president of Gallagher’s north central region, which includes Cleveland. “The top two strategies are ‘We’re going to shift costs to the employee and we’re going to go out and shop for a plan.’ ” These aren’t sustainable, Ziebell said. Instead, Ziebell suggests two broader strategies: mitigating risk through defined contribution and engaging employees in wellness initiatives.

As director of wellness in employer services at the Clinic, Jennifer Hunter’s entire role centers on figuring out the engagement piece.

She takes lessons on engagement the Clinic has learned in working with its own employees and helps other organizations create a culture of health. A significant portion of the businesses she works with are within the health care industry, but her

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e with costs of benefits clients range broadly from retail to finance to manufacturing.

Engagement is a puzzle for many employers who offer wellness programs, but attract only a fraction of employees to participate.

Terpeluk believes the answer is incentives.

“You can appeal to people’s greater sense of self and all that stuff, but at the end of the day, people have to have some incentive,” he said.

Clinic employees who have one or some of six identified chronic conditions (high blood pressure, high cholesterol, diabetes, asthma, overweight or smoking) are encouraged to join disease management programs.

Their participation and success in the programs are directly linked to how much they’ll pay in premiums, which the Clinic levels in bronze, silver and gold plans.

Bronze is the basic, silver is for those who join a program and gold is for those who meet established health goals. Gold can save a family up to $1,000 a year.

Healthy employees can also see these savings by proving they’re participating in certain activities.

“Most companies have wellness programs now,” Terpeluk said.

“They just don’t tie those into things like benefit design and driving down health care costs.”

Additionally, the Clinic offers free membership to different programs, such as Weight Watchers and Curves — in addition to its own fitness centers — to remove the financial barrier at the front end.

UH also offers financial incentives for employees who are focusing on their health. Individuals are paid up to $600 a year in the form of pay-

check bonuses for taking steps to improve their health.

Activity levels, health education classes, preventative care, tobacco cessation classes and weight and nutrition management classes can all help employees earn that incentive.

This year, UH is adding increasing heart rate (measured through a wearable device) to the options.

Next, it’s trying to see how to add community engagement, a form of mindfulness, to a more holistic look at ways to earn that bonus, Hunt said.

Terpylak said Summa designed specialty disease management programs and removed financial barriers for people to get preventative care. For those with certain chronic conditions, Summa has tried to reduce copays, such as keeping insulin free for diabetics.

The system also hired a registered nurse dedicated solely to the employee population. The nurse is embedded in the network and can coordinate needs.

Having leadership on board with wellness is key, Hunter said, citing the Clinic’s decision to stop hiring smokers and to remove sugary sodas and candy bars from campus vending machines.

“I think that most employers feel a deep sense of responsibility to the health and wellbeing of their employees,” Hunter said. “It doesn’t mean it’s easy to accomplish, but I think the commitment is there.”

She sees time and time again a desire but no path to a health employee population. Engagement, and figuring out how to measure that, is vital.

“Culture eats policy every day of the week,” she said.

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The trick is figuring out a way to embed health in the vision, mission and values of a company, much like safety is at the core of manufacturing companies.

“It’s how do you make health and wellbeing systematic in a culture, so that the healthy choice is valued and easy,” Hunter said.

UH’s Hunt said it’s simply the right thing to do for employees. By extension, that’s the right thing for patients, said Elizabeth Hammack, associate general counsel and strategic adviser for UH. “We have a population of people who are caregivers, who are devoted to the mission of University Hospitals, of taking care of patients,” she said. “And we need to make sure that they also take care of themselves, so making sure that they have all the tools that they need to do that.”

By the second year of its employee ACO, UH had people asking how to replicate that. Hunt said UH has seen a lot of growth in the past two years in its commercial ACOs. Today, about half of its 300,000 ACO members are through commercial structures.

As Summa works through this year, officials will be able to quickly figure out what works, what doesn’t and what new opportunities exist, Terpylak said.

“And as we fine-tune that, then it’s a very easy discussion with other employers in the marketplace about how to structure both their benefit design, build in some value-based incentives and plan design features, and realize that the opportunity for lowering the employers cost of care for their employees is working with an integrated coordinated delivery network,” he said.

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Opinion

From the Editor

You’re still the key to our story

Editorial

Still rolling The Cleveland International Film Festival, whose 12-day run kicks off this Wednesday, March 30, is special in many ways.

Like the city it calls home, the 40-year-old festival emanates a sense of toughness — a Midwestern grit, even. Absent, in many cases, is the stiffness or elitism that tends to go hand-in-hand with high-end art, particularly film festivals.

For almost two weeks, moviegoers of all stripes — from all over the country, not just Northeast Ohio — take in hundreds of films.

We learn together. We laugh together. We cry together.

We share in the earth-moving power of film.

The festival has had an incredible 40-year run with no intent on slowing. In 1977, it opened with seven feature films from 10 countries.

This year’s festival will showcase 192 feature films (including one in 3D) and 213 short films from 72 countries. The festival has weathered economic downturns and a general shift in the way people spend their entertainment dollars.

All the while, the festival has remained accessible — both geographically and from a cost standpoint.

The average ticket price is between $14 and $16 and is on par with what one might spend to see, for instance, the latest Star Wars installment at Crocker Park.

The bulk of its showings take place in the heart of downtown Cleveland at Tower City Cinemas — a film complex to which the festival personally committed $500,000, with a loan from The George Gund Foundation, for a much-needed digital projection conversion.

Last week’s news that a Dan Gilbert-led venture had bought the Avenue shopping center cast uncertainty over the film festival and its home.

Gilbert and Co. have been tight-lipped about their plans

for the tired shopping center and how it fits into their growing downtown empire, which includes the Ritz-Carlton Hotel, JACK Cleveland Casino and Quicken Loans Arena.

But in our view, one thing is for certain: The festival must be part of those plans.

Tower City’s shopping center is in desperate need of an overhaul, and Gilbert has the vision (and deep pockets) to make that a reality.

However, fresh coats of paint, more attractive retail options, high-end dining destinations — whatever Gilbert has in mind — won’t offer the same value as the film festival.

For those few days each spring, Tower City’s movie screens expose us to other cultures and new ways of thinking. Downtown Cleveland could use more of that, not less.

Since the film festival’s move from the Cedar Lee Theatre to Tower City in 1991, its attendance has ballooned by 600%.

Last year, more than 100,000 people attended the festival.

But given the rampant redevelopment in downtown over the last several years, the festival has done its due diligence and explored other possible locations.

Nothing, of course, would work quite as well the festival’s current digs, which include nearby dining, public transit and hotels.

This year’s festival opens on Wednesday with a ’70s-era coming-of-age film called “Good Ol’ Boy.” The festival program notes — quite appropriately — that the film “reminds us that it’s not where we’re from, but where we are that makes us the person we become.”

The festival’s roots might not be in Tower City, but the venerable complex is a critical piece of its legacy and hopefully future.

So, Mr. Gilbert, we hope to see you at the movies this year and beyond. Popcorn’s on us.

PUBLISHER AND EDITOR: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS

MANAGING EDITOR: Scott Suttell (ssuttell@crain.com)

We’ve made a lot of changes here at Crain’s Cleveland Business over the past two years, and we begin this spring season with another: After two years as editor and the past several months as acting publisher, I’ll serve now as publisher and editor of Crain’s Cleveland.

I’d like to take a moment to introduce myself and to tell you why I am so excited to lead such a talented team. And why I am so eager to continue the great work of covering business news that’s important to you and providing advertising and marketing solutions that are important to your business.

I’ve spent my entire professional career in the Cleveland area. My roots in northern Ohio are deep. I’m a Valley Girl — no, not that valley — the Mahoning Valley, where I grew up on the south side of Youngstown. I attended Bowling Green State University — on an acting scholarship, believe it or not. Theater, however, wasn’t my calling. Journalism was, and since graduating in 1989, I’ve spent most of my career as an editor, at The Plain Dealer and now at Crain’s.

I have been fortunate to work alongside many outstanding journalists during my 25Elizabeth plus years in this field — relentless reporters, McIntyre exacting editors, and characters who often seemed to come straight from Central Casting. That talent trend continued when I walked into the Crain’s newsroom in 2014.

Every workplace goes through trying times, and we here at Crain’s are not immune to them. The difference is how you react, how you move forward, and how you continue to serve your customer base. What I’ve been struck by these past few months is the strength of our team, every last member. Their pride, their professionalism and their perseverance have been unwavering. And I’d like to note, in particular, the leadership of managing editor Scott Suttell, advertising director Nicole Mastrangelo and events manager Jessica Rasmussen.

As we move forward, I guarantee that all the dedicated men and women at Crain’s Cleveland Business — from the journalists and the account executives to the event and marketing professionals — will continue to deliver business news, insights and solutions for Northeast Ohio’s decision-makers, entrepreneurs and leaders.

That’s no different than what this publication has done for more than three decades. It’s an impressive legacy. And it will continue, with vigor.

I also ensure you that we will continue to transform Crain’s Cleveland into a modern media brand. We had a busy year in 2015. We redesigned our website and print publication and expanded our coverage in Summit County. We also created Crain Custom Studio – Cleveland, our content marketing division, under the leadership of Amy Ann Stoessel.

That momentum is carrying into 2016. We’ll continue to deliver award-winning coverage, not only of the Republican National Convention but other important topics, such as plans to embrace our river and lake to the efforts to rebuild Cleveland and Akron. We will keep on delivering top-notch events, such as our Crain’s Women of Note awards and forum, as well as marketing solutions for businesses throughout our region.

So now that you know a little bit more about me and what we have in the works here at Crain’s, I’d love to hear about you and your business. Do you have a story our journalists should know about? Can our marketing professionals help you bring your message to customers? Would you like to be a part of our engaging and informative events? Give me a call. Shoot me an email. Maybe we can grab a cup of coffee and talk.

At Crain’s Cleveland Business, we’re interested in your story.

That’s something that will never change.

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 letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

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

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Anyone who has ever launched a new venture knows the high likelihood of failure. Smart leaders might be able to modify the original intent and purpose of these two institutions and create something that could eventually stand on its own. Pulling all funding and creating another vacant space in downtown Akron might not be the best alternative. And speaking of Monday morning quarterbacking, no one can possibly believe that the “Global Center for Health Innovation� is easier to remember than Medical Mart, or has more meaning, or is more descriptive. I can’t think of a single metric that would place the name “Global Center for Health Innovation� above Med Mart. (And by the way, the Austen BioInnovation Institute in Akron could use a more marketing-oriented name, too.) — Robert E. Chalfant The Global Center for Health Innovation provides economic benefits beyond its own profit-andloss statement. It brings substantial numbers of people into town, providing hotel, restaurant and travel spending, all of which is taxed by various levels of government.

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only $400 or so on my total investment. Meanwhile, FirstMerit CEO Paul Greig gets a reported $20 million to $30 million parting gift. No wonder he did the deal now on his retirement timetable rather than waiting for a year or two for a better offer for the shareholders. — 174745

Re: Public Square redo Another failure from the worthless dolts in city government. Two years from now, Public Square will again be a rotting cesspool of crime, like it was last year. Squander millions: the mantra of city government. — J Cc

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Re: Cavaliers’ struggles The only remaining question with this team is effort. This edition of the Cavs has proven they are capable of losing to anyone at any time. Last year, we had momentum. This year, we’re just ambling to the finish line with a confused identity. We’ll see. — Donald Templeman

Re: The Donald Trump effect Regarding the March 22 Bloomberg story about Donald Trump’s candidacy boosting turnout in Ohio and other swing states, are they factoring in all the Democrats who are registering as Republicans to vote for Trump in an effort to hurt the GOP? There are a lot of them. — catinshoe

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THE DISH

Plum Café plans to fill casual-dining gap on Lorain Avenue Business partner Jonah Oryszak, executive chef and partner Brett Sawyer and sous chef Pete Rosewicz plan to open The Plum Café & Kitchen in April.

When Nate Lobas purchased the two-story building at 4133 Lorain

Lee Chilcote Chilcote is a freelance writer and editor who has written for Vanity Fair, Next City, Belt and other publications. He is the founder of Lit Cleveland.

Ave. three years ago for a mere $42,000, the roof was leaking in multiple spots and the back wall was beginning to buckle. Yet today, it’s been turned into a showroom for modern Cleveland dining.

The Plum Café & Kitchen, which aims to be a comfortable quick-service café during the day and a bar and restaurant at night, is scheduled to open in April, pending final city approvals. The owners hosted a pri-

vate wine tasting there earlier this month. Oryszak said there are a dearth of neighborhood gathering places between Ohio City and Detroit Shoreway, and the Plum aims to fill that gap by providing a reasonably priced venue with great food.

“It would have been much easier to not be open during the day, but we’re committed to providing a place like this in the neighborhood,” he said. “We’ll keep our price points low on food and alcohol so we’re not pricing anyone out of enjoying the food and fun.”

Located next to Platform Beer Co., the classic brick storefront that now houses the restaurant had been empty for years. After fixing the roof and replacing the back wall, Lobas and his crew gutted it and started over. Visitors will be impressed by the dramatic two-story dining room, exposed brick walls, new storefront windows and sleek white oak floors.

The curving, handmade bar framed by subway tile promises to be both a conversation point and a comfortable place to belly up and grab a cup of coffee or a beer.

“We were going for more of a timeless look for everything,” said

executive chef Brett Sawyer, who previously worked under Jonathon Sawyer (no relation) at both the Greenhouse Tavern and Trentina.

“We got lucky with the exposed brick already being here and not having to do much to it.”

Brett Sawyer is also a partner in the project, along with two other friends. Architect David Ellison designed the space, and the owners tapped local businesses such as Rustbelt Welding and Sawhorse Woodworks to build furnishings.

They funded the buildout using their own money and a loan from the Economic and Community Development Institute.

While spending the past two years working on the project, the partners also organized pop-up restaurants at Platform.

The original plan was to open a small café with an adjacent retail space, yet once the owners saw how quickly the Lorain Avenue district was growing, they opted to expand the project. Additionally, Sawyer was keen on opening a full-service restaurant. The partners eventually plan to open another venue in the upstairs space, but they’re not ready

to unveil a concept yet.

“I don’t think anyone realized how big of a project this was in the beginning — but in a good way,” said Sawyer.

The Plum will feature a stamped concrete patio in the rear. Other design features include a chimney that juts up in the middle of the dining room (it will eventually display two deer heads that were shot by Sawyer’s father) and a stainless steel conduit that curves along the walls and ceiling, lending an artistic feel to something ordinarily mundane.

Stuffed deer heads aside, Sawyer promises a diverse menu that offers something for everyone. “We’ll be friendly to vegans and vegetarians,” he said. “What I learned from Jonathon Sawyer is to make sure everyone is welcome and well-fed.”

From 7 to 11 a.m. daily, the Plum will offer coffee service and a variety of locally made pastries. The lunch menu, which will be served from 11 a.m. to 3 p.m. or so, will include a range of small sandwiches, graband-go sides, juices and beer. The plan is to serve dinner from 5 to11 p.m. during the week and until midnight on Fridays and Saturdays.

Right now, the Plum will be closed on Sundays.

Sawyer said the menu will focus on small plates.

“We encourage people to share food family-style and eat together,” he said. “When you go out now, everybody gets something different, and there’s not a lot of conversation about the food. Small plates open up your palette. Whenever my friends and I go out to eat, we always share.”

The menu will include such items as whole white bass, chicken mousseline, roasted potato and apple salad, braised pork shank and catfish nuggets. Sawyer is leaning toward offering just a few beef options on the menu to keep prices affordable.

The Plum’s cuisine will also be as fresh as possible, incorporating products from local purveyors such as Ribbon Orchards and Red Basket Farms. “We aim to be as local and sustainable as possible,” he said.

“We don’t have a walk-in freezer.

We’re very waste-conscious and will sell it until it’s gone.”

To contact Chilcote, send an email to clbfreelancer@crain.com. You also can follow him on Twitter @leechilcote.

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2016 CLEVELAND HERITAGE MEDAL BESTOWED UPON INDIVIDUALS WHOSE SIGNIFICANT CONTRIBUTIONS THROUGH LEADERSHIP, COLLABORATION AND SERVICE HAVE LEFT AN INDELIBLE MARK ON ALL SPHERES OF THE CLEVELAND COMMUNITY.

MORTON L. MANDEL THE REV. DR. OTIS MOSS, JR. SANDRA PIANALTO RICHARD W. POGUE SEN. GEORGE V. VOINOVICH THE INAUGURAL CLEVELAND HERITAGE MEDAL WILL BE PRESENTED ON MAY 21, 2016 AT METROHEALTH GALA2016 To join us in the celebration, please call 216-778-7509.

Cleveland Heritage Medal Selection Committee: Deborah Z. Read , Esq., Thompson Hine LLP, Co-Chair Ronald B. Richard, The Cleveland Foundation, Co-Chair Mitchell Balk, The Mt. Sinai Health Care Foundation Julie Boland, EY Akram Boutros, MD, FACHE, The MetroHealth System Margot J. Copeland, KeyBank Foundation John R. Corlett, The Center for Community Solutions

Pamela B. Davis, MD, PhD, Case Western Reserve University School of Medicine Kristen Morris, Cleveland Clinic Grafton J. Nunes, Cleveland Institute of Art Rear Admiral Michael Parks, The American Red Cross of Northeast Ohio Jerry Sue Thornton, PhD, Cuyahoga Community College

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NORTHEAST OHIO POSTS ANOTHER MODEST JOBS GAIN

For daily on-line updates, sign up @ CrainsCleveland.com/Daily

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The Northeast Ohio workforce gained 682 paychecks in February. A small number, but in a jobs picture on a roller coaster, any gain is better than the alternative.

The latest Ahola Crain’s Employment (ACE) Report projects that private-sector employment in the Cleveland-Akron metropolitan region’s private sector grew to 1,164,001 jobs in February from 1,163,319 in January on a seasonally adjusted basis, an increase of 0.06%.

The economy of the seven-county metro area seems to be settling into a new normal of year-to-year slow job growth with month-to-month ups and downs, even when seasonal fluctuations are smoothed out. Over the last 12 months, employment is up 1,433 jobs, a slight 0.12% gain since February 2015, when the region employed 1,162,568 people.

Employment peaked in July at 1,167,490, then slid for four months to 1,161,984 before recovering.

“The estimated job growth indicates a modest pace of business

activity,” reports economist Jack Kleinhenz, who devised the ACE model. “The world economies were not well behaved in the early months of 2016, impacting the outlook for the U.S. and probably creating some drag on the regional economy.”

The metro area growth lags slightly the growth in state employment.

According to the Ohio Department of Jobs and Family Services, employment statewide grew by 53,000 jobs, a 0.98% gain from 5,344,000 in February 2015 to 5,397,000 in February 2016.

Manufacturing has been sluggish, stemming from slower growth overseas and the stronger U.S. dollar, Kleinhenz said, though he believes that gains in consumer spending, income, employment and housing prices will counter the manufacturing slowdown.

“Consumer spending is off on a strong start this year,” said Kleinhenz, who is the chief economist for the National Retail Federation, a major retail trade association. “Housing

should get the benefit of a better labor market and growing incomes.

The early Easter should also pull spending into the first quarter.”

The Federal Reserve Board’s March Beige Book, the Fed’s eight-times-ayear assessment of economic conditions across the country, concurs with the ACE characterization. It lumps its Cleveland-based Fourth District — which includes Ohio, Western Pennsylvania and Eastern Kentucky — among the majority of the Fed’s 12 districts that are reporting “modest” growth in the labor market.

The Fed noted reports from the Fourth District that low-skilled jobs were becoming increasingly difficult to fill.

The ACE Report is based on payroll data from about 3,000 predominantly small and midsize employers that is gathered by The Ahola Corp., a Brecksville payroll and human capital management firm and on other economic indicators, including construction data and retail sales.

— Jay Miller

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Focus SPORTS BUSINESS

HIGHEST-PAID ATHLETES - P. 16-18

z

Q&A WITH INDIANS VP - P. 20

The new control room at Progressive Field powers the scoreboard, ribbon boards and the sound system. (Photos by Marc Golub)

Tribe’s new tech game is top-notch

BY KEVIN KLEPS

HEAD OF THE CLASS

kkleps@crain.com @KevinKleps

It’s impossible to miss the new scoreboard at Progressive Field, which, at 13,039 square feet, is easily the biggest in Major League Baseball.

But it’s another plush feature, a new state-of-the-art control room that overlooks home plate, that seems to excite Neil Weiss the most.

The room has enough video screens to make sure every possible camera angle is covered, and it’s large enough to divide the space into two — with video and audio operators not stumbling over each other.

That might seem simple enough, but prior to the second round of renovations at the 23-year-old ballpark, that wasn’t the case.

“This space now is a much more usable space,” said Weiss, an Indians senior vice president and the club’s chief information officer, during a recent tour of the control room. “The large open area in the middle allows people to be working on the edges. Before, it was a little cramped with equipment all over the place, and this can be a beehive of activity during games.”

The room powers the flashiest parts — the scoreboard, ribbon boards and a new sound system — of the two-year ballpark renovation, which will be rounding third and heading home by the time the season opens Monday, April 4, against

THE 10 LARGEST SCOREBOARDS IN MAJOR LEAGUE BASEBALL: 1. Progressive Field 2. Safeco Field 3. Kauffman Stadium 4. Petco Park 5. U.S. Cellular Field 6. Citizens Bank Park 7. Minute Maid Park 8. Chase Field 9. Comerica Park, 10. Yankee Stadium

Cleveland Indians Seattle Mariners Kansas City Royals San Diego Padres Chicago White Sox Philadelphia Phillies Houston Astros Arizona Diamondbacks Detroit Tigers New York Yankees

13,039 square feet (59 feet by 221 feet) 11,425 (56.7-by-201.5) 8,925 (105-by-85) 7,638 (61.2-by-124.8) 7,547 (55.7-by-135.5) 7,333 (75.6-by-97) 6,674 (54-by-123.6) 6,256 (46-by-136) 6,096 (48-by-127) 5,959 (59-by-101) Sources: Daktronics, Cleveland Indians

SCOREBOARD FACTS: z The Indians’ new scoreboard covers 147% more square feet than the previous version, but the club said it will result in a 32% reduction in total wattage used. z The new display is five times brighter than the average out-of-home LCD TV and 14 times brighter than a typical smartphone screen. z The resolution is almost three times greater, from 480 lines of resolution to 1,400 — better than a 1080 HD TV. z The additional ribbon displays are a combined 2,184 feet long. For comparison, Key Tower is 947 feet tall, and Terminal Tower stands 771 feet.

the visiting Boston Red Sox. The scoreboard, LED boards and control system cost a combined $16 million and were funded by Cuyahoga County’s tax on alcohol and cigarettes. The new toys take Progressive Field from the bottom of MLB’s technology scale to its upper echelon, said Tribe vice president of marketing and brand management Alex King.

The previous scoreboard measured 5,364 square feet and was installed prior to the 2004 season, which made it the second-oldest in

baseball. The sound system that was replaced had been around since Jacobs Field opened in 1994.

“Our risk factor for failure was growing exponentially every year,” Weiss said. “We had gotten to and past the point that there were parts that if they failed, they would have to be recreated because they weren’t sold anymore. And that just takes a lot of time and money.”

After the sin-tax portion of the Progressive Field renovations received all of the necessary approvals late last summer, Daktronics was se-

lected to manufacture and install the Tribe’s monstrous new display.

The South Dakota-based company has installed more than 50 of the current MLB, NBA and NFL scoreboards, including all but nine of baseball’s 30 videoboards.

Will Ellerbruch, a Daktronics national sales manager who lives in Olmsted Falls, said by the time all of the planning was done, the old scoreboard wasn’t torn down until January. The installation of the new high-resolution display — which was designed to fit into the old

structure, since the prior scoreboard was surrounded by advertisements — began in February.

“That’s pretty fast for a project of this size,” Ellerbruch said.

Mother Nature was unusually kind during the winter months, leading to the project being ahead of schedule and giving the Tribe more time to come up with ways to use all of the new technology.

“This one is top of the line,” Ellerbruch said, before adding that the Progressive Field scoreboard uses SEE TRIBE, PAGE 19

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SPORTS BUSINESS

Made of money Cavs dominate ranking of city’s best-compensated athletes

BY KEVIN KLEPS kkleps@crain.com @KevinKleps

It almost doesn’t seem fair to include LeBron James in a ranking of Cleveland’s highest-paid athletes.

The Cavs superstar — with off-court earnings estimated at $44 million in 2015 — is one of the world’s most recognizable, and bestcompensated, athletes. He’s also a business mogul who has his own production company and marketing agency, plus stakes in an upstart pizza chain and a social-media platform, and maybe even a budding movie career.

Really, James’ $22,970,500 Cavaliers salary is a bargain for a franchise that packs the house on game days, has one of the NBA’s five richest local television contracts and more than a handful of seven-figure sponsorship deals. It’s also just a fraction of what he makes in a particular year — maybe less than a third.

James’ $23 million salary tops Crain’s analysis of Cleveland athletes with the largest on-court and on-field earnings. Endorsement income isn’t widely available, though Forbes estimates that the Cavs have two players — James and Kevin Love — in the top 50 in the world. (See story, Page 18.)

The Cavs, as expected, dominate the Cleveland top 20, with the first four spots, five of the top seven and all but three of the top nine.

The Big Three of James, Love and Kyrie Irving have a combined $59,067,000 in salaries, which makes up almost 32% of the $187.3 million in salaries for the 21 players on the list.

(Tribe pitchers Carlos Carrasco and Corey Kluber are tied at No. 20.)

The eight Cavs players in the top 20 earn an average of $12.56 million per year in salary.

The Browns (six players, $44.9 million total) and Indians (seven players, $42 million) each

account for fewer than 25% of the total salaries in our rankings. That’s not entirely surprising, since the Indians traditionally have one of baseball’s lowest payrolls and the rebuilding (yet again) Browns have approached free agency in a much more conservative manner under the analytically minded duo of Sashi Brown and Paul DePodesta.

Advantage, NBA The NFL — a $13-billion-per-year behemoth — is the world’s most successful sports league, but it’s the NBA that produces the country’s biggest athletic stars. The players’ salaries, in turn, have skyrocketed since the NBA inked monstrous new TV deals with ESPN and Turner Sports. The league’s salary cap is expected to jump at least $50 million in a six-year span, culminating with a $109 million projection for 2017-18.

Ken Ungar, the founder and president of US Sports Advisors, an Indianapolis-based sports marketing agency, said the NBA has a couple of big advantages over the NFL when it comes to promoting its players. The easy answer is the NBA has fewer players — about 450 on opening night, compared to 1,696 on the NFL’s 53-man rosters (which doesn’t include practice squads that can make room for another 10 players).

The second edge, Ungar said, is the attire.

“There are 1,600 NFL players, all of whom on game day are wearing a helmet,” Ungar said. “Fans can’t see the players. In the NBA, fans can see the whole player, his expression, his drama, up close. The NBA has the natural advantage of player access to fans.”

And while the NFL is more of a machine that benefits less from stars than it does fantasy football and gambling, Major League Baseball has a promotional problem, according to Ungar.

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“They do great marketing,” Ungar said of MLB. “I went to the (2015 MLB) All-Star Game in Cincinnati, and there was a lot of sponsor activation. But I didn’t see the activation around players that I do in the NBA.” Stars don’t “create themselves,” Ungar said.

That’s not an issue for the Cavs, who have the NBA’s largest payroll and three of its biggest names. Dan Gilbert is paying five players — James, Love, Irving, Tristan Thompson and Iman Shumpert — at least $10 million a year.

Cleveland’s only other eight-figure-a-year athletes are Browns cornerback Joe Haden (a five-year deal that averages $13.5 million per season) and All-Pro tackle Joe Thomas ($11.5 million annually).

The NBA, because it has far fewer players, has the largest average annual salary at $4.2 million in 2015-16, but it’s baseball, with 25man active rosters and a $4 million average salary in 2015, that has the highest payrolls outside of football.

The Indians, with their well-chronicled market and attendance challenges, seem likely to have a payroll in the $90 million range in 2016. That figure probably will be at least $100 million below the payrolls of the four or five richest teams in the sport.

The Tribe’s highest-paid player, Carlos Santana ($8.25 million), might not be around past 2016. The designated hitter is in the final year of his contract, unless the Tribe exercises a $12 million club option for 2017.

Seven of the 21 players on the list signed new contracts as recently as last summer — James, Love, Thompson, Shumpert, J.R. Smith, Mike Napoli and Rajai Davis. James likely will opt out of his deal again this summer, possibly setting up another round of questions and rumors of potential suitors.

If LeBron stays in Cleveland, as expected, he will top these rankings again in 2017.

In the NBA, the rich only seem to get richer.

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CLEVELAND’S 20 HIGHEST-PAID ATHLETES

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NBA has endorsement edge One of the more amusing parts of State Farm’s “Meet the Hoopers” ad campaign is Kevin Love appearing as “son,” a young kid with a full beard that is years ahead of his scrawny physique.

It’s difficult to miss the ads during a basketball broadcast, but it’s not as if Love needed the notoriety.

The Cavs star has 11 endorsement contracts, including deals with Banana Republic, Chocolate Milk and SAXX Underwear. In 2015, Forbes estimated that Love made $4 million in endorsements, which ranked in the top 50 among the world’s 100 highest-paid athletes.

LeBron James was fourth, with an estimated $44 million in off-court earnings.

Ken Ungar, founder and president of US Sports Advisors, an Indianapolis-based sports marketing agency, said the NBA “has a lineup of sponsors who activate like crazy around the players.”

That’s evident in Forbes’ annual ranking of the highest-paid athletes. In the 2015 top 100, 16 of the 18 NBA players on the list made at least $1 million in endorsements, according to Forbes. The NFL and Major League Baseball, each with eight, combined for 16 top-100 athletes with seven-figure earnings off the field.

“Look at State Farm and the Hoopers ad campaign,” Ungar said. “The NBA brought State Farm to the table, but State Farm took it to the next level. The players are getting significant exposure in ads that are done in a creative, funny way. It takes player brands to the next level.”

Crain’s analysis of Cleveland’s highest-paid athletes shows that almost every major endorsement deal has been landed by a Cavs player.

Browns cornerback Joe Haden represents Jordan Brand, the popular Nike offshoot featuring Michael Jordan’s silhouette on all its gear, and All-Pro tackle Joe Thomas has a deal with Pepsi.

But the majority of the Browns’ and Indi-

ans’ players seem to follow a pattern outlined

by Ungar.

“For most of them, it’s gear deals,” Ungar said. “It depends on marketability. It starts with (free) gear, then gear and cash, then gear and cash and marketing programs.”

An NFL agent who wished to remain anonymous told Crain’s that Nike does almost all product-only deals in which an athlete gets to wear the apparel giant’s gear on game day, then gets a certain amount, maybe in the low five figures, to spend on Swoosh products.

Ungar — whose company works with the likes of the NBA Players Association, NASCAR, the Los Angeles Dodgers and Arizona Cardinals receiver Larry Fitzgerald — believes Major League Baseball has really fallen behind the NBA and NFL when it comes to the marketing of individual players.

“There hasn’t been a focused brand building for players on the sponsors’ part and MLB’s part,” Ungar said. “If you go back to the history of baseball, stars made themselves. As baseball slipped in popularity behind basketball, football and NASCAR, they really didn’t create a culture of player promotion.”

According to Forbes’ 2015 analysis, Alex Rodriguez of the New York Yankees led all MLB players with $7.5 million in endorsement earnings. The only other baseball player at $4 million or more was Boston Red slugger David Ortiz.

On social media, the NBA also has a profound edge. The Cavs’ combined 8.5 million Facebook, Instagram and Twitter followers as of March 24 was more than twice the combined follower count for the Browns (2.11 million on the three social-media platforms) and Indians (1.71 million). The Cavs’ total is the ninth-best in the NBA. James has a combined 70.7 million Facebook, Instagram and Twitter followers. That’s twice as many as Kobe Bryant, who ranks second in the NBA with about 35.3 million.

— Kevin Kleps

Who’s missing from the list?

Jantel Lavender, a Cleveland Central Catholic High School and Ohio State University product, was selected to her first WNBA All-Star team in 2015. That, however, doesn’t guarantee the 27year-old a lucrative contract. Far from it.

The WNBA maximum salary for a veteran player was $109,500 in 2015, and many of the league’s players make considerably more money playing overseas. Lavender, when she’s not playing for the Los Angeles Sparks, is a member of Istanbul, Turkey-based Fenerbahce.

She is Cleveland’s highest-profile women’s basketball player, but she doesn’t come close to making the cut in Crain’s inaugural ranking of the city’s highest-paid athletes. In fact, no women are on the list, as Cleveland doesn’t have any LPGA standouts, and Northeast Ohio isn’t home to a seven-figure-earning women’s tennis player (though Gates Mills native Lauren Davis is making a name for herself). Several prominent male athletes also didn’t make the cut, including the player who might open the season as the Browns’ starting quarterback: ● If we had extended the rankings to the top 25, Josh McCown would have been No. 22. If he remains on the roster, the 36-year-old QB will make $4.375 million in 2016, the second season of a three-year, $14 million deal with the Browns. ● Whichever player the Browns select at No. 2 overall — perhaps one of the top quarterbacks, Jared Goff and Carson Wentz — will earn more than McCown. Marcus Mariota, the No. 2 pick of the 2015 NFL draft, signed a fouryear, $24.2 million deal, including a signing bonus of nearly $15.9 million. ● The Browns recently released two veterans, disappointing wide receiver Dwayne Bowe and 34-year-old linebacker Karlos Dansby, who were scheduled to make at least $5 million each. Bowe was paid $9 million for making five catches in his short-lived Cleveland career. ● Gary Barnidge, one of the Browns’ three Pro

Bowlers in 2015, signed a three-year, $12.3 million extension last December. At the time, he received $3.25 million to sign. The tight end will make a combined $1.75 million in salary and bonuses in 2016. ● Cleveland native Jason Dufner earned $1,621,417 in his first 12 events of the 2015-16 PGA season. The 39-year-old golfer’s best season was 2012, when he made $4,869,304, won two tournaments and finished 14th in the FedExCup standings. Dufner, who has made close to $20 million in his PGA career, has endorsement deals with Vineyard Vines, EA Sports, SuperStroke, Titleist and FootJoy. ● Several Northeast Ohio natives are successful NFL players. The one with the most lucrative contract is Chiefs tight end Travis Kelce, a Cleveland Heights grad who recently agreed to a five-year, $46.8 million extension. Kelce will make $10,646,000 in 2016. ● Other local NFL notables: the Vikings’ Alex Boone ($6.7 million in 2016), the Texans’ Brian Hoyer ($4,859,375), the Rams’ Rodger Saffold ($4,656,250), the Panthers’ Ted Ginn Jr. ($1.925 million) and the Steelers’ James Harrison ($1.25 million). Broncos cornerback Aqib Talib, who was born in Cleveland and moved to Texas after seventh grade, will earn $8.5 million for the defending champs. ● Canton GlenOak High School product Kosta Koufos is in the first season of a four-year, $32.879 million deal with the Sacramento King.

Koufos’ 2015-16 salary is $7.7 million. ● Another GlenOak grad, Trail Blazers guard C.J. McCollum, is a $2.5 million bargain for Portland, and two Northeast Ohio natives were NBA first-round picks in 2015 — the Celtics’ Terry Rozier ($1,824,360 in 2015-16) and the Lakers’ Larry Nance Jr. ($1,155,600). ● Matthew Dellavedova’s salary — $1,147,280, the lowest on the Cavs — doesn’t match his value to the team. But how many players have their own line of coffee?

— Kevin Kleps

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CONTINUED FROM PAGE 15

similar technology to ones the company is installing in the new stadiums of the Atlanta Falcons and Minnesota Vikings.

The main videoboard is supported by six more unique boards — four ribbon boards (covering the lower, middle and upper levels, plus the family deck), a new out-of-town scoreboard and a marquee located on the corner of East Ninth Street and Carnegie Avenue. Combined with a sound system that replaced a setup that former Tribe president Mark Shapiro said sounded like “Charlie Brown’s teacher” in certain parts of the ballpark, and the Indians believe they’re finally playing from a position of power when it comes to the allaround fan experience.

“In the last couple years, I think we’ve really evolved what was a great ballpark and made it really modern for today’s fan,” King said.

During the scoreboard construction process, which was led by Daktronics and included the help of BeckTV and Gilbane Building Company, as many as 75 workers were involved on a given day.

On game day, there will be 15 video operators, two audio operators and a public-address announcer in the modernized control room.

Prior to this year, equipment in the room “wasn’t able to communicate well to the board and was falling apart,” King said.

Now, the Tribe will be able to take full advantage of the new space, from the ability to enhance in-game replays, to scripted videos, introductions that King said will move at a “SportsCenter”-like pace, better statistical displays and more advertising opportunities.

“The visual impact will be really pronounced,” King said of the scoreboard. “That will be kind of a rightaway big impact, but that provides us with a lot of flexibility both in the types of content that we can play, the amount of content that we can showcase to fans and then just the viewability.”

It also helps that there will finally be a sound system that reaches every part of the ballpark, and gives the Indians the option of catering the type of audio to the area of Progressive Field in which it will be heard.

“Before it was basically you’re all on or you’re all off. You’re all loud or you’re all soft,” Weiss said.

In a statement given to Crain’s, the Gateway Economic Development Corp. said its relationship with the Tribe has been “exemplary.” The Progressive Field landlord added that it was proud that the work will be completed “on time and on budget.”

Weiss, the Tribe’s CIO, made multiple references to the new technology being with the times, instead of trailing far behind.

“I’d say it’s on par with anything in baseball,” he said. “It’s definitely relevant for the year 2016 and the next many years going forward.”

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Q & A: Kurt Schloss

Vice president, concessions, Cleveland Indians

Over the last two offseasons, the Cleveland Indians have dramatically upgraded the fan experience at Progressive Field. More food. More beer. More fun, right?

This year, the Tribe brought in even more local eateries, including Cleveland Pickle, Ohio City Burrito, Dante’s Inferno Pizza (Dante Boccuzzi), Momocho Mod Mex (from Eric Williams), Fat Head’s Brewery and Saloon and The Brew Kettle. Last year’s additions included Melt Bar and Grilled, Barrio, Sweet Moses, Great Lakes Brewing Co. and Dynomite Burger. With Opening Day (April 4) right around the corner, Crain’s chatted with Kurt Schloss, the Indians’ vice president of concessions, about the new additions and how he would spend $20 at the ballpark.

— Timothy Magaw

Over the last few years, the Indians have brought quite a bit of local restaurateurs into the ballpark.

What was the thinking behind that?

Our plan as we redesigned Progressive Field was to better connect the city with Progressive Field, which we’ve done in two ways: By creating better views of downtown from the Right Field Gate — similar to those that already were in place at the Left Field Gate — and by bringing in these new food concepts. These restaurants have strong ties to our city and region, and by incorporating them into the ballpark, we’ve created an experience our fans can get only here: live Tribe baseball and some of the most unique food in the city.

Are restaurants reaching out to the Tribe, or vice versa? If the team is doing the outreach, what’s your — pardon the pun — pitch?

Is this a trend in most MLB stadiums?

Are most teams reaching out to local restaurants?

The process has been evolutionary. We began by creating a list of all the concepts we thought had the potential to tie in with what we were trying to accomplish, had a strong following in their respective location or community and had a desire to contemplate partnering with the vision of how we wanted to change the fan experience. Matt Fish, from Melt Bar & Grilled, was our first meeting. It helped that Matt is an avid Indians fan and felt strongly about his brand in the community, the heritage of the city and was the first to commit to our partnership. Since our first round was completed in 2015, we have had more and more concepts reaching out to us.

It’s one thing to try and sell a vision, but when you can see it coming to life, it makes it easier to tell the next chapter in our story.

There are some teams that have gone down this path, but few, if any, that have made it a part of major renovations of their facility like we have. The way a fan interacts with the food and beverage experience is changing — from visiting to a bellyup counter and ordering from a menu board, to browsing the ballpark for something familiar, yet unique, to eat. We’re unique in baseball — and perhaps all of sports — in having 12 local restaurants in the ballpark; plus, by incorporating elements of some of these restaurants’ diverse neighborhoods into the park, we’re celebrating the uniqueness of our region in another way.

Is it possible for these chefs to recreate their craft in a ballpark rather than a restaurant kitchen?

congratulations

R

on your recent ADDY Awards for capturing the success of the Dwayne Browder Field renovation!

Some items don’t necessary translate to the ballpark experience, but those concepts with whom we have aligned have had little difficulty making this transition. We ask for and encourage their involvement, creativity, participation and oversight. We have to make sure thatwe are replicating as much of the restaurant culinary experience in our facility for the selected food items, so their fans and ours see and feel the connection.

What has been the biggest change in stadium concessions over 20 years?

The available space and equipment have changed the food and beverage experience to become more of a part of the entertainment. Providing unique culinary items, while not straying too far from the core basics — like hot hogs, beer and peanuts — is important. (Those ballpark classics still have value and are quite popular, after all these years!) Trying to serve many things from one location in the past to now having one location serve fewer items more quickly and right off the grill is important.

Progressive Field has lowered the price of many ballpark staples in recent years, and many of those items are below the major-lleague average. What sort of feedback do you hear from the fans?

YOUR COMMITMENT TO THE COMMUNITY CONTINUES TO SHINE BRIGHT!

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Providing value is an important part of the fan experience, whether that’s a value-priced beer or hot dog or a kids meal. Building from the popular ballpark classics (hot dogs, beer, soda etc.), to the enhanced ballpark classics (core items with a twist), to unique local concepts allows us to build a pyramid of options for the fan to choose from on their visit. Fans want options. While we offer value items, many times they want something different or unique. We saw this with the Corner Bar in 2015. Fans had the option to buy a $4 beer, but what they wanted was a great selection of craft beer.

Ohio has great craft beer, which resonated with many of our fans.

If you had only $20 to spend inside the ballpark on concessions, what would you get and why?

I’d visit the ballpark any Friday night from May 27-Sept. 2. A $1 Sugardale Hot Dog, with either a $2 Miller Lite or Bud Light from 5 p.m. to 7 p.m. in our Right Field District, or a $3 soda to get you started. Then you can visit any of our local concepts and I guarantee you’ll be full! You get value with our ballpark favorites and then something unique to eat like a taco, sub, sandwich or burger, many coming with a bag of chips as well.

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DECISIONS Tackling the tough choices of caring for your aging loved ones HEALTH CARE • LEGAL AFFAIRS FINANCES • REAL ESTATE WELLNESS

LEGAL AFFAIRS

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S2 March 28, 2016

TABLE OF CONTENTS

2-3

LEGAL AFFAIRS • Discuss advanced directives now to avoid confusion later • Keep an eye on upcoming legislative changes

5-6

HEALTH CARE • Aging at home can be possible with the right accommodations • Who will make your medical decisions?

• From medical bills to care, providing support and guidance is essential

7-8

WELLNESS

9-10

FINANCE

•

• Be on guard, don’t be a target Invest the time to plan for caregiving’s effect on finances

11

REAL ESTATE • Staying at home isn’t always the best choice

SPONSORS AND CONTENT RESOURCES: Altenheim Senior Living Alzheimer's Association Cleveland Area Chapter Benjamin Rose Institute on Aging Cleveland Hearing & Speech Center ErieView Consulting Home Care Assistance Hospice of the Western Reserve Jennings Center for Older Adults Laketran McGregor Meyer Wilson North Coast Community Homes Reminger Co. LPA Visiting Angels Visiting Nurse Association

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Discuss advanced directives now to avoid confusion later

M

any individuals at some point during their lives are witness to the slow cognitive and health declines of a loved one caused by stroke, dementia or another debilitating health event.

Grandma’s independence wanes. She still has good days, but the bad days are becoming more prevalent.

So when does a power of attorney take over, making it possible for another to make health and financial decisions on her behalf?

“It’s a big gray area,” says Rebecca Zeiter, helpline coordinator at the Alzheimer’s Association Cleveland Area Chapter. “We get a lot of calls on our 800-help line. Mom can’t manage the finances, and every time I try and step in, she gets mad at me.”

A team approach is the optimal way of addressing these types of situations, Zeiter says.

“It’s so important to involve the doctor,” she says. “A doctor makes the determination on whether a loved one has the capacity to make decisions.”

But that’s easier said than done. “We tend to find that doctors don’t want to be the ones determining that their patient can no longer make his or her own decisions,” she says. “Doctors need to be the ones educating the families, especially if there’s a change in the brain.”

Only 45% of individuals with Al-

‘‘

zheimer’s disease or their caregivers report being told of the diagnosis, while 90% of people with the four most common types of cancer are informed of the diagnosis, according to the Alzheimer’s Association.

New provisions to Medicare are intended to address the role of advanced directives in health and longterm care. The recent changes allow for physicians to be reimbursed for having conversations with their Medicare patients about advanced care planning.

“This can be a general discussion, like have you thought about what’s important and who can care for you,” says Bill Finn, president and CEO of Hospice of the Western Reserve.

“The whole idea is that the doctor and patient are on same page. The longer we wait to make these decisions, the more complicated it becomes.”

Indeed, according to a survey published in the January 2014 American Journal of Preventive Medicine, only 26.3% of the more than 7,900 respondents had an advance directive.

Lack of awareness was cited as the most common reason a person did not have those plans in place.

The Midwest Care Alliance, a Columbus-based nonprofit that promotes palliative care programs, offers an advanced directives packet that contains both Ohio Living Will and

Health Care Power of Attorney forms.

“A discussion surrounding a durable power of attorney is one of the most important discussions we can have early on,” Finn says.

For those individuals resistant to confronting these issues, both Hospice of Western Reserve and the Alzheimer’s Association offer resources to help guide families toward decision-making.

Zeiter offers these key talking points for adult children who are uncertain about how to introduce this conversation with their aging loved ones: “You are filling these forms out so you can dictate your wishes.”

Older adults who survived the Great Depression have a “pull yourselves up from the bootstraps, you can handle it” mentality, she says. “Approach the conversation by emphasizing they are filling out these forms so they can manage their own future instead of leaving it up to someone else to decide for them. Their voice is still being heard in the health care community.” n

Involve a neutral party, like a doctor or a bank. “We love our families, but emotions can run high when people differ on opinion,” Zeiter says. “The emotions may be more restrained with a third party present.” n

Approach the conversation by emphasizing they are filling out these forms so they can manage their own future instead of leaving it up to someone else to decide for them.

‘‘

•

• Signs your loved one needs help Outlets to keep your loved ones busy and active

REBECCA ZEITER, helpline coordinator, Alzheimer’s Association Cleveland Area Chapter

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Keep an eye on upcoming legislative changes

H

ealth care laws and policies that impact elder care are constantly changing. Allison McMeechan, an attorney who specializes in elder law and special needs planning at Reminger Co., suggests keeping an eye on the following laws, which “are getting a lot of attention in legal circles,” she says.

MEDICAID SPEND DOWN CHANGE Ohio is joining most states in transitioning from a 209B state to a 1634 state, as authorized by the Social Security Act. What this means is that individuals who are eligible for Supplemental Security Income, or SSI, will no longer have to file a separate application for Medicaid.

They will automatically be enrolled. The law also eliminates the Medicaid spenddown requirement, which mandated that individuals whose income was higher than a Special Income Limit, currently $2,200 per month, had to prove that they had spent their income over the threshold on medical expenses before they could receive Medicaid benefits. Instead, Ohio will now require Medicaid recipients to deposit any income above the threshold into a Miller Trust, which will be used for medical expenses. “So if my income is $3,000 a month, I’ll have to put that $800 into the trust to reduce my income and still qualify for Medicaid,” McMeechan says. “This law will affect thousands of people.” The transition is expected to be complete in July.

an effort by Congress to provide funds that directly address elder abuse and support adult protective services.

Funding for fiscal years 2011-15 was $4 million. That allocation has doubled in 2016, to $8 million, in the appropriations

LITIGATION

package. The law helps coordinate response to elder abuse between state and federal agencies, and supports improved data collection through unified Adult Protective Services databases.

SAVINGS FOR THOSE WITH DISABILITIES Signed into law in December 2014, the ABLE Act allows each state to create tax-advantaged savings accounts for individuals with disabilities. “The money grows tax-free, just like a 529,” McMeechan says. “It doesn’t affect the public benefits that individuals are receiving.” So, someone who’s disabled

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March 28, 2016 S3

won’t jeopardize Medicaid benefits.

The goal is to use the money to pay for qualified expenses, like medical bills.

“Just don’t overfund the account and use it as a long-term savings account because it doesn’t work that way,” McMeechan says. “If the individual passes away and there’s a remaining balance, the money goes back to the state to offset Medicaid expenditures.”

The individual must have been diagnosed with a disability before age 26 to qualify. This savings vehicle should be available by mid-2016.

SPECIAL NEEDS TRUST FAIRNESS ACT

Currently, only parents, grandparents, courts or a legal guardian can establish a special needs trust for a loved one.

But these federal guidelines leave out the beneficiary. “Some individuals may have only physical disabilities, but that doesn’t mean they don’t have the mental or cognitive capacity to create their own trust,” she says. What this amendment to Title XIX (Medicaid) of the Social Security Act allows is for individuals under age 65 to create a special needs trust and deposit funds into the trust for supplemental income, which won’t count against could deposit up to $14,000 a year into her Medicaid income requirements an ABLE account. A balance up to and coverage. The bill passed the U.S. $100,000 will not impact SSI benefits, Senate and now is under consideration Crains_VNAO.4x6.pdf 1 3/7/16 9:08 AM in the U.S. House of Representatives. while a maximum value of $414,000

Your best friend just asked you to be her health care power of attorney.

Now what?

Now, sit down and have a real discussion about what she wants if the worst happens. Would she want to be kept alive no matter what? What if she was no longer able to breathe on her own; if she was permanently unconscious?

By completing her health care power of attorney and living will, she is taking control of her healthcare decisions. As her health care power of attorney, you will be her voice if she can’t speak for herself.

After her advance directives are complete, ask her to return the favor. After all, that’s what besties are for.

Visit hospicewr.org/decisions for helpful information, videos and free downloads.

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Aging at home can be possible with the right accommodations

A

ging in place is a hot topic.

Health care costs are escalating.

People are living longer, which means an increasing number of adults are exploring ways in which they can remain at home and manage their health as affordably as possible.

“The construction industry will have to react to the aging baby boomer population,” says Scott Michaels, owner of Solon-based Home Care Assistance.

“We’re starting to see nascent trends emerge, like wider hallways and accessible home features. I think activity in the (home modification) market will increase over the next five to 10 years.”

The trend is what prompted North Coast Community Homes, a provider of housing for individuals with disabilities and mental illness, to establish about a year and a half ago an ancillary business, North Coast Accessible Homes.

“Most of our conversations are with adult children. Financial savings is the main driver of our inquiries,” says Dick Russ, vice president of resource development. “The cost savings depends on a few factors, but you can easily get to $80,000 a year paying for a long-term care facility. But making the necessary adjustments to a home can be a one-time investment of $5,000 to widen hallways, on up to $40,000 to make a home completely accessible.”

The home health care industry is expected to grow as the idea of “aging in place” gains a foothold in the marketplace. Total home health spending in 2016 is expected to grow 7.1%, reaching $99.5 billion. That number is expected to rise 58%, to $157.2 billion by 2022.

Demand also is rising for home health aides who can help with nonmedical home care services, such as bathing, dressing and eating. In fact, home health aides represent the fastest-growing occupation in the Cleveland metropolitan statistical area between 2012 and 2022, with a projected increase of 38.3%.

The focus on home-based health care also has implications for the technology industry.

“Technology is moving out of the hospital and into the home,” Home Care Assistance’s Michaels says. “We’re seeing more remote monitoring.”

Changes in Medicare reimbursement policies are part of what’s driving the shift from institutional care to home health care, when it’s appropriate.

“Having more services at home is less expensive all around,” Michaels says.

Just be aware of the difference between home health care and home care, and whether insurance covers those services.

Generally, home health care refers to skilled services, including therapies

March 28, 2016 S5

Who will make your medical decisions?

By WILLIAM E. FINN

A

dvance care planning -- which in Ohio includes completion of Health Care Power of Attorney and Living Will forms — empowers individuals to have a voice in their care by communicating health care choices at the end of life that reflect their ethical values and wishes. Having a written plan ensures preferences are honored should individuals be unable to speak for themselves. Just as im- Finn portantly, it saves families from the agonizing role of guessing what would be wanted during a lifethreatening medical emergency.

The Institute of Medicine’s recent report, “Dying in America,” identifies persistent major gaps in care near the end of life and cites advance care planning as a key area requiring urgent attention. The growing number of individuals in our region who have some combination of frailty, physical and cognitive disabilities, chronic illness and functional limitations make this study especially relevant in our community.

and medicine administration. These services are covered by Medicare, Medicaid, Medigap and veterans insurance, and they are administered for a finite period of time until the recipient reaches a maximum state of recovery, says Kevin Johnson, certified senior adviser at Visiting Angels of Cleveland.

Home care services are defined as activities of daily living, such as toileting, dressing and transferring.

These services are not covered by Medicare, but are covered by veterans insurance and may be covered by Medicaid if the care recipient qualifies.

“This is where long-term insurance comes into play,” which would pay for home care and thereby allow the individual to remain in his or her home and still retain some level of independence, Johnson says.

Goals of care conversations Trusted medical professionals can — and should — play a pivotal role in educating individuals about the necessity and the process of communicating their preferences.

Unfortunately, many people do not know how to initiate conversations with their doctors or what questions

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The best time to begin talking and planning is well before an illness progresses to a life-threatening stage to allow time for calm and well-reasoned decisionmaking and talks with one’s family and physician. Hospice of the Western Reserve has created a booklet called “Courage in Conversation: A Personal Guide,” to help families begin important conversations about end-of-life care at any stage. It includes tips, helpful worksheets and all the legal forms required by the State of Ohio. Free copies of the booklet can be downloaded at www.hospicewr.org/decisions.

Good advance planning for health care decisions is really about values, priorities and quality of life. People want to share their memories, pass on wisdom and keepsakes, connect with their families and make some last contributions to the world. Ensuring choices about end-of-life care are in place can make those moments as fulfilling as possible.

Finn is president and CEO of the Hospice of the Western Reserve.

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From medical bills to care, providing support and guidance is essential

T

he notion of unexpectedly being thrust into a loved one’s personal affairs is unsettling and confusing. Karen Larry-Moyer recalls her experience with her own mother, which is what prompted her to start her own medical bill consultancy.

“My mom had a hip replacement and was moved to a long-term care facility for rehabilitation,” says Moyer, CEO of Northfield-based ErieView Consulting. “The stitches weren’t even healing, and already she was getting

stacks of medical bills. Were we just supposed to show up and give her this stack of bills when she’s trying to heal?

She would’ve been overwhelmed.”

Their situation is not unique, which is why Larry-Moyer and other industry professionals say designating a family member or other trusted individual to negotiate the health care system on a patient’s behalf is critical to managing overall medical and financial well-being.

When it comes to handling medical bills, Moyer suggests carefully sorting

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through the contents of each envelope.

Don’t allow your loved one to pay them all up front without analyzing them first, she says.

“There’s a cultural mentality in the older generations of paying the bills first, but challenging them later if something doesn’t look right,” Moyer says. “Once you pay the bill, the health care provider has no responsibility to follow up.”

Collate the bills. Staple together duplicates. Sort according to the provider and date of service.

“Just don’t let the bills stack up, because they don’t go away,” Moyer says. “They get worse. A lot of people go into bankruptcy because of medical bills.”

Of course, family members cannot arbitrarily step in. Health care providers will not disclose any information about a patient unless the person designated within the patient’s power of attorney is negotiating.

In terms of working with health care providers, be sure to keep your

loved one involved in the conversation as much as possible, according to AARP’s Caregiving Resource Center.

Write down questions in advance of an appointment, and consult a second opinion if necessary.

If a loved one has suffered a stroke and is unable to speak, try flashcards or communication boards to help her

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March 28, 2016 S7

SIGNS YOUR LOVED ONE NEEDS HELP Sometimes, a loved one’s need for help is obvious, and other times, the need is gradual. Here are some common signs that indicate your loved one needs intervention, according to the Parkinson’s Resource Organization:

1

THE HOME IS UNKEMPT

A messy home signals the senior is not only physically unable to keep the home clean, but may be depressed.

2

CHANGES IN PERSONAL HYGIENE

4

SCORCHED POTS AND PANS

5

The individual’s clothes are dirty, and his hair is disheveled. Activities of daily living — including showering, laundry and teeth brushing — are becoming more difficult and infrequent.

3

this could mean the cookware burned as a result of being left on a flame for too long. This is a sign of short-term memory loss or Alzheimer’s disease.

These are red flags because

LOSS OF APPETITE

When shopping and cooking a meal becomes too overwhelming, a senior will forgo eating balanced meals. Ask your loved one to describe the last meal he had to make sure he is getting enough nutrition.

FORGETFULNESS

Not paying bills and forgetting to refill prescriptions are among the warning signs that a caregiver needs to step in.

Having advanced care directives in place ensures a more seamless transition into the next phase of an aging loved one’s life, when some type of assistance becomes inevitable.

“A simple discussion ahead of time can remove some of the suffering later on for the loved ones and the family,” says Bill Finn, CEO of Hospice of Western Reserve. “You can even talk about your future wishes and give instruction to your family in a non-threatening environment, like over dinner table at Thanksgiving. It’s easier to have these discussions when you’re healthy.”

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WELLNESS

Outlets to keep your loved ones busy and active L ife expectancy is climbing.

People are living longer and want to maximize all life has to offer, within realistic boundaries of their health and financial ability.

Aging, more than ever, is only a mindset.

The dramatic rise in life expectancy is driving the focus on the availability of diverse activities and interests for adults in the prime later years of their life.

From online social dating, to lifelong learning, yoga and volunteering, seniors are discovering an increasing variety of outlets to keep them busy in their post-career years. An online search of AARP’s featured senior activities throughout Ohio and the U.S. include classes at major universities, customized art programs at assisted living centers and intergenerational daycare.

“There’s a growing awareness of older adults interested in activities they can engage in,” says Richard Browdie,

president and CEO of Benjamin Rose Institute, a Cleveland-based nonprofit research and advocacy organization.

“Wellness is another big one.”

The average life expectancy for females in 1940 was 76.7, but increased by more than 10 years, to 86.8 in 2015. That figure is expected to climb to 89 by 2050, according to the Social Security Administration. By comparison, men in 1940 lived to 70.6 on average. The age reached 83.1 in 2015, and is expected to grow to 85.9 in 2050.

Longevity is yielding healthier lives and “compressed morbidity,” or shorter periods of decline before death, according to the National Bureau of Economic Research. A holistic approach to wellness will help maintain quality of life and integrity

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during the twilight years of one’s life.

To that extent, Benjamin Rose Institute offers a 10week aging mastery program that offers content related to increasing participants’ health, financial well-being and social connectedness.

“These are well-structured courses that touch on eight major topics, all related to wellness in some form or another,” Browdie says.

“These include financial manipulation and abuse, health and the impact of isolation. We touch on the topics related to lifestyle decision-making.”

Offering a diversity of traditional and creative programs also is a key part of attracting and engaging residents in independent living and assisted living environments.

Among the offerings at Altenheim Senior Living in Strongsville are tai chi instructors, WHOGA (wheelchair yoga), a rotating lesson on a new culture and language, outings to Amish country and an on-campus Oktoberfest.

“The residents and their families love the annual Oktoberfest with authentic German beer and food, a German brass band and an ethnic dance group,” says Paul Psota, CEO of that nonprofit senior living service provider.

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FINANCE

March 28, 2016 S9

BE ON GUARD, DON’T BE A TARGET

D

avid Meyer has seen his fair share of victims of investment fraud walk through his office door. Many of these clients are wealthy and educated professionals, and otherwise thought they weren’t susceptible to losing their life’s savings to a fraudster.

“One out of five seniors is a target of financial fraud, but most people think it will never happen to them,” says Meyer, the founding principal of Meyer Wilson, which handles investment fraud and consumer class action cases from its offices in Cleveland, Columbus and Los Angeles. “You go to the doctor because your knees hurt, and the doctor tells you that you need surgery, so what do you do? You get the surgery because you trust his opinion. We trust people to act in our best interests because we’re not experts at everything.”

That trust, however, leaves investors vulnerable to misconduct.

“Fraudsters don’t care who you are — they are only concerned about how they can convince you to invest with them. Anyone with money is a potential victim of investment fraud,” he says. “Doing just 15 minutes of research on the front end can protect you from losing your life savings.”

So whether you are exploring an investment opportunity, or are the adult child of a parent who has investments, consider these tips to safeguard those assets:

designations, such as the “CFP” for certified financial planners and “CFA” for chartered financial analyst, are well-regarded in the industry because they require extensive testing and

continuing education, Meyer says.

“Many other designations, however, are just marketing gimmicks,” he says. “In some cases, the designation is awarded upon submitting an

application and paying a nominal fee.”

Do your own background check.

Visit finra.org and search your broker’s name. Every stockbroker who is licensed to sell securities has a central registration n

depository (CRD) number, which is linked to a database that holds all sorts of information about your broker, including whether he or she has been sued or has been involved with a bankruptcy.

WHE N S TOCK BROK E R S A R E CROOK E D, SOME THING H APPENS TO THEM.

Never invest money with someone who calls you on the phone or contacts you online. “Sometimes seniors who live alone get that call, and they establish a relationship with the sales person on the other end. The senior ultimately goes to the bank and wires his lifesavings,” Meyer says. n

Never wire money. “The intake of clients who have wired money to people whom they thought were going to invest it and ultimately lost their savings has tripled over the last couple of years,” he says. n

RSVP ‘no’ to a free lunch seminar.

Those events are intended to sell you something, even if the host says otherwise. What sounds like an informative investment session may turn out to be a hard sell for an annuity or another “investment.” “Seniors go to these things, and they feel obligated to fill out a form because they got a free lunch,” Meyer says. “It could turn into the most expensive lunch you ever ate.”

US.

n

Most stockbrokers are honest. Some are not. At Meyer Wilson, we’ve been successfully representing investors against dishonest brokers for more than 15 years. We’ve done it locally. We’ve done it nationally. And we’ve built our reputation on our success. So if you know of a stockbroker who is crooked, negligent, or just plain not smart enough to do the right thing, contact us. We can help.

n Be wary of titles and licenses. Don’t

invest your hard-earned money with someone who is not properly licensed to sell investments. Licenses are granted by federal or state regulatory authorities, such as the Securities and Exchange Commission and the Ohio Division of Securities. Some titles and designations are granted by private organizations. Certain professional

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S10 March 28, 2016

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Invest the time to plan for caregiving’s effect on finances

F

rom the time we are young, our lives are built around planning and decision-making — what we want to be when we grow up, where we’ll go to college, to whom we’ll get married, how many children we’ll have and where we’ll live.

“We even do the same for our children,” says Lee Ann O’Brien, director of community relations, special projects and planned giving at McGregor, a Cleveland-based senior living provider. “We even go so far as to make arrangements for our burials and funerals. But amid all this planning, we overlook one key factor — where we’ll live when we can no longer live at home.”

The lack of planning presents emotional and financial challenges for adult children who find themselves assuming the roles of chauffeur, caregiver and health care advocate when their loved one no longer can do these independently. The so-called “sandwich generation” often is financially unprepared for supporting themselves and dependents young and old.

“It becomes very expensive,” O’Brien says.

About 12% of Americans ages 45 to 54 are providing financial support for their children and ongoing living assistance to other loved ones, according to a poll conducted in 2015 by the Associates Press and NORC Center for Public Affairs Research. The

report also found that most Americans ages 40 and older do not feel prepared for planning or financing long-term care for themselves or a loved one.

So, what can be done to protect one’s savings while caring for aging loved ones? The key is to carefully wean dependency on the adult children and guide them toward a living arrangement that addresses long-term care needs, those in the industry say.

“The first start is having that conversation with a loved one about where to live,” O’Brien says. “Most people moving into retirement communities in the 55-year-old to 75-year-old range are still active in some way, and are looking for amenities, programs and events.

Remember, you’re not just picking a place — you’re picking a lifestyle.”

Amenities certainly are one consideration, but location is a key factor, too.

“It has to be convenient so family members can easily visit. Otherwise, far drives are expensive and timeconsuming,” she says.

Make sure the residence offers a long-term solution and not a

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panacea for fixing the caregiver’s interim financial strain.

“What if they have to move again because their health changes? Moving is expensive,” O’Brien says. “You may want to consider continuing care retirement communities. Once you’re in and care needs change, you may be able to stay in the same apartment or suite but receive a different level of care services.”

The responsibilities indeed are overwhelming, but also provide those who identify as the sandwich generation the opportunity to create a roadmap for their own future, and otherwise prevent their children from facing a similar scenario.

“Consult an elder adviser or estate planning attorney. Pre-plan to age gracefully,” says Claire Zangerle, president and CEO of the Visiting Nurse Association of Ohio. “Engaging professionals who do this everyday is an investment in your future.”

Determine whether your current home has the right layout for accessibility accommodations or whether it’s time to downsize. You may be healthy now, but a fall or other debilitating event can strike at anytime, usually when we’re not expecting it, Zangerle says.

“You may want to think about taking the equity from your home and putting it into a long-term care policy” so that you can receive home health and home care services, she says.

WANTED: Employer Flexibility

T

he aging baby boomer population presents challenges for their children, who still are at the peak of their careers. The time and responsibility associated with caring for their parents, whether helping them manage a chronic condition or transition into an assisted living facility, are going to require more flexibility and understanding from employers, says Kevin Johnson, a senior adviser at Visiting Angels of Cleveland. “Employees who find themselves in this situation struggle with absenteeism versus presenteeism, where they’re on the job but preoccupied,” he says.

“Corporations will have to put something of substance in their benefits package to allow for paid time off, much like maternity and paternity leave, to help Gen X and Gen Y manage these situations.”

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Consider all possibilities when deciding living arrangements

‘‘

or other aging loved ones to downsize, but they should be part of the search.

“Talk to them as early as possible,” she says. “There are many things you can do if you want to stay in your own home to make it more accessible, even if it has multiple floors. You can move the laundry room from the basement to the first floor, or convert the dining room into a bedroom,” Salopeck says.

For those loved ones who are candidates for independent or assisted living, get a feel for the amenities offered. Visit various locations, and note the variety of activities and participation levels.

“I’ve seen people come back to life when they move into a group setting with intellectual stimulation,” Salopeck says. “The advantage of

moving to a life care community is built-in friends, built-in activities, built-in transportation and access.

We’ve seen people forge new relationships and really flourish.”

According to a 2014 report by Family Caregiver Alliance, an advocate for caregivers, the average monthly price of assisted living in Ohio is $3,512 a month. Some assisted living facilities reach $8,000 a month, say those in the industry. But don’t let the sticker shock deter you from nudging a loved one toward this avenue, if it’s most appropriate.

“There are a lot of expenses that go away when you move out of your house, like your mortgage, car payments, car insurance, utilities and food,” Salopeck says.

‘‘

H

ome is where the heart is, but you can’t love something that may not work for you in the near future. That’s why aging adults need to be proactive about considering their next realistic residential choices.

“Don’t hold on tight to that fivebedroom home you raised your children in,” says Allison Salopeck, president and CEO of Jennings Center for Older Adults, which provides a myriad of care and supportive services for older adults. “It may end up limiting your ability to enjoy life, especially if something catastrophic happens while still living in the home,” such as a fall, heart attack or stroke.

Adult children should not only help encourage their parents, grandparents

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On The Move Easy access to transportation is a key factor in the process of helping a loved one transition into a downsized new home, specifically if it is independent housing. “Seniors outlive their ability to drive by seven to 10 years,” says Julia Schick, director of marketing and public relations at LakeTran, Lake County’s regional transit system. “That’s where easy access to public transportation is so important, so they can still get to doctor’s appointments, go shopping and be part of their community.” LakeTran serves about 250,000 seniors a year, and the average ridership age has been increasing.

“We’re seeing a larger increase of 80- to 95-year olds who can’t drive but still want to get to the hair salon or the YMCA. Having that access to transportation impacts their quality of life.”

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Business of Life

Getting together for old time’s sake

BY MARK OPREA Ever wanted to get a pinot grigio with a paleontologist? Well, you sort of can.

For the last few years, the Cleveland Museum of Natural History has hosted a monthly “Think & Drink with the Extinct,” an afterhours meet-and-greet for Cleveland young professionals hosted in their regular, dinosaur-laden halls. Though they’ve been running it since the spring of 2014, it’s only this season that the museum’s program has really taken off.

After snapping a group selfie in front of a triceratops, among the hundreds at March’s Think and Drink, Mike D’Amico, a 25-yearold project manager, said he’s not too surprised with the turnout.

“Any time you mix alcohol with dinosaurs,” he added smiling, “you know you’re going to have something special.”

Among the museum’s monthly soiree stand a handful of efforts from academics, to poets and museum administrators, to bring learned talk and discourse to unconventional settings. The trend of Think and Drinks has

popped up in bars and banquets around the country — from Seattle tech meet-ups to D.C. military strategy discussions — with an underlying motive of bringing together young professionals.

And Cleveland boasts a diverse selection.

There’s the Science Café, where Neil DeGrasse Tyson fans gather at the Music Box Supper Club to discuss particle physics; Readings like Brews + Prose or Story Club Cleveland, where live-lit nerds sit and listen to storytellers at the Market Garden Brewery or the Bottlehouse. Now, the Think and Drink concept is being used by much larger institutions to bolster an appeal that may not have thrived beforehand.

On March 9, in a banquet room at the Beachcliff Tavern in Rocky River, about 150 people — including a dozen priests and seminarians — gathered for a monthly Catholic meet-and-greet called Theology on Tap. Catered with chicken tenders and pale ales, the faith-based conversational is an attempt to bring ecclesiastical discussion outside

where it’s normally held.

“Well, where do young people go?” asked Father Tim Roth, a priest for St. Mary’s Seminary in his 30s, and head organizer of Theology on Tap West. “They go out to bars, right?

So I say let’s meet them there. And while we’re at it, let’s talk about faith.”

All of which is present at Theology on Tap. In his cassock and plastic-framed glasses, Deacon Patrick Schultz, also of the St. Mary Seminary, delivered an impassioned and frequently funny talk on the subject of manhood, while using quotes from Pope John Paul II to scenes from Braveheart. The crowd spanned everyone from sixth-year seminarians, to grad students, to veteran priests in their 50s and 60s. Like most Think and Drink events, it sold out.

It’s this casual vibe that the natural history museum has grown attuned to since experimenting with their own event two years ago, a push to fill the gap, as 11-year staff member Carin Miller said, between “those that visited in third grade, and those that only do when

they have kids.” Catered with red wines and Great Lakes beer (their sole sponsor), the museum’s soiree isn’t just a copy cat of sister events.

For Mary Rouse, the museum’s manager of public programs, Think & Drink with the Extinct is more than a meet-up for young professionals: it’s after-hours opportunity to meet the “scientists in the basement,” the dozen or so researchers — from ornithologists to astronomers — the day-attendee might never see otherwise.

Rouse said this season’s Think & Drinks have brought in, on average, 400 to 500 people on event nights — a nearly 200% increase from pre-2014 numbers. The January Think & Drink, which featured a forensics demo from the county medical examiner, brought in more than 750.

“We totally blew it out of the water,” Rouse said. “People don’t usually hang out in the museum like this. And I think it’s a whole new way to look at education — an education for the people.”

We don’t just see people for who they are; we see

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In the past nine months, Above, Betz Rund, left, and Melody Mueller interact during a “Think & Drink with the Extinct” event at the Cleveland Museum of Natural History. Below, Jackie Zassick, left, and Michaela Stiber are shown. The events are averaging 400 to 500 attendees per night.

(McKinley Wiley photos)

94% of individuals served in United Way-funded healthy food access programs have increased their fruit and vegetable intake.

them for who they can become.

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BUSINESS OF LIFE

Source Lunch Bill Ryan wears many hats on a given day.

The president of the Center for Health Affairs has a diverse background in finance, public policy, government and health care. In 2002, he came to Cleveland to lead the center, which advocates for Northeast Ohio hospitals.

Now, he serves as a bridge between the community and hospitals. He also spends a lot of time with CHAMPS Healthcare, the business entity of the center, working to develop and get to market products and services.

Any given day could be thrown upside down by unanticipated events. For instance, when suicide bombers last week attacked an airport and city metro station in Brussels, Ryan spent the day talking to people about whether Cleveland is prepared for an event of mass casualties.

As that bridge between the community and area hospitals, he’s where many turn when they need to feel comfortable about Cleveland’s health-care capabilities.

Bill Ryan HEALTH CARE

— Lydia Coutré

What do you see as the primary role of the Center for Health Affairs today?

How does having this advocacy benefit patients and the general community?

The center’s primary role is to advocate for the hospitals and to assist the hospitals in fulfilling their mission in the community.

We provide a lot of information to them about what’s happening in the community. … (We) also provide a lot of information to policy makers. … And quite frankly, we serve as an opportunity for a third party without a vested interest in one hospital system or the other, talking about how issues work across the whole system.

Sometimes it’s hard for the individual hospitals to talk about an issue because it sounds like, oh well, you’re just carrying your own water.

I think one of the really important roles of the organization is to be able to serve as a sounding board for the community and make sure that our members understand the needs of the community, understand where maybe they have some learning to do. … We kind of serve as this conduit. I spend a lot of time helping the community understand the complexities of health care, but I also spend a lot of time helping the health care community understand the needs and concerns of the community. So it really is a two-way communication.

There’s a national organization, there’s a state organization advocating for hospitals. Why does Northeast Ohio need a regional hospital advocate?

The state Legislature tends to be relatively low key. … For us obviously, the biggest — and this is said by a former budget guy — the primary policy vehicle with regard to health care at the state level is the biennial budget. And being aware of all of the little cracks and crevices in the budget where things can happen, where if you’re not paying attention, they have negative implications. … I can’t remember the last time I actually sat down with a legislator and said I need your vote on this particular bill. The state hospital association does a great job on that, and we have a very good relationship with them.

It’s pretty simple. The largest non-public employers in Northeast Ohio are hospitals.

Health care is the primary driver of Northeast Ohio’s economy. So things that have either a positive or negative impact on health care ripple through our community with a lot more intensity than they would a community that’s built around insurance, like Columbus.

Is there any pending state legislation you’re following?

Obviously health care is changing rapidly. What are some of the biggest challenges you see local hospitals facing as health care evolves?

Increasingly, they’re being asked to be responsible for things that they were never responsible for before, like the health status of a community. I mean, hospitals were designed for people to come there when they’re sick or they’re injured, and they get fixed. And the health care system is rapidly changing to an environment where we’re expecting health care professionals, whether it’s hospitals, doctors, any kind of clinician to be more proactive and to potentially prevent those injuries and those illnesses. The economic model that continues to exist doesn’t really reinforce that, but there is this expectation from a policy perspective that that’s going to happen. So I think that’s one. I think the other one is — and we’ve seen it play out a little bit in the last couple of years here in Cleveland — how medical care is delivered is so rapidly changing, and it confronts people’s expectations. We have more hospital beds than we need. … There are fewer and fewer situations where a seven-, eight-, 10-day hospitalization is necessary, which means we’ve got empty buildings and we need to right-size the infrastructure to the way we deliver care now.

FIVE THINGS: FAVORITE SPOT IN NORTHEAST OHIO Rocky River Reservation of the Metroparks

HIS TYPICAL DAY “It’s typical in that it almost always begins with some level of chaos. It’s the thing I love about my work. It’s the thing that also sort of wears you out.”

HOW HE RELAXES Ryan plays guitar and builds guitar amplifiers.

SKILLS HE WISHES HE HAD Playing the piano and drawing

FICTIONAL WORLD HE’D LIVE IN Ryan said he would choose the movie “Almost Famous,” so he could travel on the road with a band. He thinks it would also be “cool” to be third-string catcher on a Major League Baseball team. “Just kind of sit back and have a good old time,” he said.

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The bill $33.46, plus tip

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SPONSORED CONTENT

CRAIN360: From Marketing 101 to 1:1 Marketing A LOOK BACK PRESENTED BY:

Marketing experts make it personal with targeted info, services, ads f Jeffrey Rohrs has his way, “context” will be the 2016 Marketing Word of the Year.

Rohrs, chief marketing officer for New York-based Yext, a provider of location management software, was the first of three keynote speakers on March 8 for the CRAIN360: From Marketing 101 to 1:1 Marketing event, presented by Precision Dialogue at the Cleveland Metroparks Zoo. Rohrs told the crowd that while content marketing — the Association of National Advertisers 2015 Marketing Word of the Year — answers the “who,” “what” and “how” of today’s rapidly evolving marketing climate, context weaves in the “what” and “where.”

The “what” is the device. Mobile is no longer the second or third screen for many users, Rohrs said. Smart phones now make up 80% of all phones in the U.S. What’s more, more than 31 million U.S. internet users only go online via their phones.

The “where,” he added, is all about location.

“We see that folks are using those ‘what’s’ — those mobile devices, those smart phones — to search for location information, store hours, address, directions. We also see that the vast majority of local searches actually convert physically in store, in restaurant, in offices within 24 hours.”

And, marketers can target customers based on location, opening up a new realm of possibilities from Bluetooth beacons for in-store analytics or proximity marketing to branded geofilters that pop up on Snapchat.

“This is where location and device all begins to swirl together in an interesting way,” Rohrs said. “Now I can look at the full breadth of the who, the what, the where, the when, the why and the how. … All this stuff is context.”

I

JANET CENTURY

From left, Jennifer Davis, director of retention marketing for Progressive Insurance; Jeffrey Rohrs, chief marketing officer for New Yorkbased Yext; and Chris Serger, principal solutions engineer with Salesforce Marketing Cloud, opened up the CRAIN360: From Marketing 101 to 1:1 Marketing event March 8 at the Cleveland Metroparks Zoo.

Connections should be relevant Jennifer Davis, director of retention marketing for Progressive Insurance, offered a potent example of how the Mayfield-based insurer looks at major life issues “through the eyes of customers” to inform targeted content.

Recognizing the importance of retaining a customer who has recently married — and whose new spouse likely has a different carrier — Progressive saw an opportunity to educate customers before marriage about the insurance discounts available to couples who are living together. To do so, it recently rolled out a series of Facebook videos with entertaining dialogue, not about the company itself, but about co-habitation.

“What we learned is folks that are moving in together are really trying to understand

how to live together,” Davis said. “They were uncomfortable, and they were looking for information.”

In one humorous short, individuals are hooked up to a lie-detector test as their prospective live-in partners ask personal questions such as, “Do you keep secrets from me?” and “Do you think your dad likes me?”

“We decided to come to market in a way that will help them ease that living experience, move in together and earn a financial discount as a result of it,” Davis explained, adding that connecting with customers in way that makes sense helps the company “be relevant to that particular group.”

Customers own their journeys Examples of targeted marketing campaigns like these are becoming more common among

companies that recognize “the customer owns their digital marketing journey,” said final keynote speaker Chris Serger, principal solutions engineer with Salesforce Marketing Cloud.

“They own that experience,” he said. “We need to have a great customer experience.

To do that, we have to have vast amounts of customer data on our hands.”

Consumers are willing to give up information in exchange for something of value to them, such as convenience or the ability to save money or time. The onus is on marketers, Serger concluded, to understand and utilize the data in a way that makes “our interaction with them real useful, real personal and in real time.”

“Not everyone is going to want to play in our sandbox all the time,” he said, “but when they are in your sandbox, you better make sure it is perfect.”

BREAKOUT SESSIONS KNOW THE BUILDING BLOCKS Knowing which ads – and marketing modalities — are most effective and defining your customer base — or desired customer base — are the keys to delivering the right message at the right time, according to Anthony Scarpaci, a member of Betterment’s growth team, and G.I. Zaratsian, vice president of strategy and business development at Speedeon Data.

Scarpaci said automated tracking services or software, such as DoubleClick, can help marketers measure the selection of display and search ads.

“What you really want to do in the digital space, especially as you get more sophisticated, is to make sure it all feeds into one platform,” he said.

Along with helping you better leverage your advertising dollar on a macro level, using a single platform allows marketers to assign a unique identifier key to each customer and begin to build a customer profile that will inform future marketing strategies. Third-party data, Zaratsian said, can help fill out those profiles.

OPTIMIZE YOUR TECH TOOLS Think Tuesday through Thursday are the best days to send an email? Think again. The proliferation of smart phones means people check their email all the time. With so many marketers sending messages Tuesday through Thursday, a weekend email might get more exposure and better response rates, said Julie Marques, marketing consultant in the email services group of Precision Dialogue.

Marques, the panel moderator, and a trio of expert panelists offered “new school” rules for using technology in the digital marketing space.

Today, for example, mobile is still king, but it is critical to optimize across devices and channels.

Panelists Jack Kusner, regional director of SmarterHQ; Pete Lipovsek, regional sales director of PowerReview Inc.; and Serger of Salesforce Marketing Cloud stressed the importance of a seamless customer journey as some 40% of transactions occur over multiple devices.

“Everything starts with mobile,” Kusner said, “and then we are seeing conversion on the desktop in high numbers.”

GET PERSONAL IN PRINT This is not your father’s direct mail campaign.

One-to-one marketing should infiltrate every aspect of a marketing strategy — including direct mail pieces, according to MRM/McCann vice president Bob Travis, who leads the consulting firm’s creative technology division.

Travis, who participated in the breakout with Craig Bollig, senior adviser of Widen, drew on his experience in launching an app for owners of GMC’s Yukon.

Designed as a resource for new car owners — who, according to research, often feel remorse soon after purchase — the app details the Yukon’s features and how to use them. A direct mail campaign targeted at new Yukon owners helped promote the app.

Fifty percent downloaded the app, Travis said, and more than 70% of those people used it more than once. “We are using that same philosophy on every direct mail piece that we use,” he said. “We are trying to zero in on those pain points for our customers, what their needs are.”

FOR MORE PHOTOS FROM THE EVENT, GO TO www.CrainsCleveland.com/CRAIN360

HEAR THE VOICE OF YOUR CUSTOMER Yes, having a highly functional website is as important as ever. But that alone is no longer the differentiator it used to be, said Nicholas Michel, research and customer experiences senior analyst at Precision Dialogue.

“Designing and testing for emotional response and engagement is taking it to that next level,” said Michel, who presented along with Stephanie Anderson, digital communications manager of Playhouse Square, and Elizabeth Bolander, director of research and evaluation, Cleveland Museum of Art. “If you think about Amazon or Apple or Harley Davidson, [companies] that have really loyal customers, it is because they have created an emotional connection with these people,” Michel said.

Simple tools, such as online surveys, as well as more sophisticated eye tracking software or EEGbased emotional response testing can help gauge a website user’s emotional response. The latter two used together, Michel explained, provides the most robust results on what aspects of a website or its content excite or frustrate users.

CRAIN CONTENT STUDIO C l eve l a n d

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McIntyre named to dual role at Crain’s DON’T YOU WISH YOU HAD A BEACHWOOD ADDRESS?

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experiments. The center cost about $5 million, including about $1.5 million for new equipment, said Fryan.

That equipment includes an electron scanning microscope, which can look for almost unimaginably small particles. Being able to identify particles allows it to find how the impurities originated, Murza said.

And, Fryan added, the equipment helps the company better measure its products, which translates into better performance for customers.

He said there’s always a point in science and engineering where it seems like people have learned all there is to know about a topic, but that’s rarely the case.

“We really know so little,” Fryan said. “And there’s so much more that we can do.”

35th Anniversary

35th Anniversary

CLEVELAND BUSINESS VOL. 36, NO. 47

NOVEMBER 23 - NOVEMBER 29, 2015

ALLYSON O’KEEFE, 37 Partner; Porter Wright

35th Anniversary

CLEVELAND BUSINESS

VOL. 36, NO. 47

NOVEMBER 23 - NOVEMBER 29, 2015 Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a summer internship there as a Case Western Reserve University law student. Since then, she has worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been promoted to real estateALLYSON partner.

O’KEEFE, 37 “Young professionals who live downtown are so excited about the city,” said O’Keefe, a Partner; Porter Columbus native who lived downtown forWright 10 years before moving to Rocky River. “The ones who aren’t from here are often more excited about it. When you move here from somewhere else, you don’t for granted.”

VOL. 36, NO. take 47 it Allyson NOVEMBER 23 - NOVEMBER 29, 2015 O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship there as a Case Western Reserve University law student. Since then, she has be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been proWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estateALLYSON partner.

O’KEEFE, Just seeing what Cleveland has gone through in the time that I’ve 37 been here, there’s obvious“Young professionals who live downtown are so excited about the city,” said O’Keefe, a ly a lot of excitement around real estatePartner; development.

I started in 2004 when we were crazy Porter Columbus native who lived downtown for Wright 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you don’t take it for granted.”

Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship as a Case Western Reserve University law student. Since then, she has MANY OF THE PROJECTS YOU WORKED ON there ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The THAT AN AREA OF EXPERTISE? Metropolitan at the 9, Uptown in every University and Steelyard Commons, and has been proYes, definitely. Real estate is extremely interesting because deal Circle is differWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estate ent. You can never get bored because there’s so partner. much variety there, from tax Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obvious“Young who live downtown so excited about the city,” said O’Keefe, a credits to historic renovations, from professionals ground-up development to rehab, are from ly a lot of excitement around real estate development. I started in 2004 when we were crazy mixed-use to residential. Columbus native who lived downtown for 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you LEADERSHIP don’t take it for granted.”

HOW WOULD YOU DESCRIBE YOUR STYLE?

CLEVELAND BUSINESS

O’KeefeI expect is not working or spending timeI work, with her husband and two children, she can I definitely believe in leadingWhen by example. the people with whom MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the very boards of nonprofit and watching college football. my associates, to work hard, and they see me working hard.

For me, it’sorganizations all THAT AN AREA OF EXPERTISE? about working hard and doing good work.

Yes, definitely. Real estate is extremely interesting because every deal is differWHAT INSPIRES YOU ABOUT YOUR WORK? ent. You can never get bored because there’s so much variety there, from tax Just WHAT seeingWAS whatITCleveland has gone the time that I’ve been here, there’s obviousWHAT OTHERS ARE SAYING: LIKE TO WORK WITHthrough O’KEEFEinON credits to historic renovations, from ground-up development to rehab, from ly a lot of excitement around real estate development. I started in 2004 when we were crazy THE FLATS EAST BANK PROJECT? mixed-use to residential. busy with development. of the boom from ’04 through ’08. I saw it go through “Allyson is extremely bright and quick witted, butThat whatwas trulysort distinguishes her the downturn, then I saw itpeople rise again, even from most successful attorneys is her exceptional skills.

Shestronger has an than before locally.

HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? uncanny ability to encourage the ‘adversaries’ in her negotiations to work in I definitely believe in leading by example. I expect the people with whom I work, OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS concert with her to achieve win/win MANY solutions to difficult problems,” said my associates, to work hard, and they see me working very hard. For me, it’s all THAT AN AREA EXPERTISE?of the Scott Wolstein, CEO of Starwood Retail Partners andOF co-developer about working hard and doing good work.

Yes, definitely. Real estate is extremely interesting because every deal is differFlats East Bank project. ent. You can never get bored because there’s so much variety there, from tax — Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON credits to historic renovations, from ground-up development to rehab, from THE FLATS EAST BANK PROJECT? mixed-use to residential.

“Allyson is extremely bright and quick witted, but what truly distinguishes her successful Inc. attorneys is reserved. her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rights HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040 I definitely believe in leading by example. I expect the people with whom I work, concert with her to achieve win/win solutions to difficult problems,” said my associates, to work hard, and they see me working very hard. For me, it’s all Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the about working hard and doing good work.

Flats East Bank project.

— Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON THE FLATS EAST BANK PROJECT? “Allyson is extremely bright and quick witted, but what truly distinguishes her successfulInc. attorneys her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rightsisreserved. ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040 concert with her to achieve win/win solutions to difficult problems,” said Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the Flats East Bank project.

— Lee Chilcote

Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain Communications Inc. All Rights reserved.

Further duplication without permission is prohibited. Visit www.crainscleveland.com. #CC15040

ing Green State University, joined Crain’s in April 2014 from the National Association of College Stores in Oberlin, where she was vice president of communications and public relations.

She spent 20 years at The Plain Dealer, starting as a copy editor in 1990. McIntyre left The PD in November 2010 and joined the Cleveland Foundation as public relations officer, overseeing the foundation’s website, advertising and donor communications programs before joining the college stores association in 2013.

TIMKENSTEEL CONTINUED FROM PAGE 5

• • • •

oversee Crain’s Akron Business.

“Elizabeth has already shown herself to be the consummate newsroom leader with deep knowledge of the Cleveland community,” Kramer said. “Since December, she has also helped to manage the business side of our publication. She and advertising director Nicole Mastrangelo are a great team that will continue to find ways to better serve both our readers and our advertisers.”

Campanelli became publisher of Crain’s Cleveland Business in December 2013.

McIntyre, 48, a graduate of Bowl-

PROMOTE. Why not?

For more information contact Krista Bora, Reprint Account Executive kbora@crain.com • tel 212.210.0750

Sale talk While the company is still struggling financially, the research seems to be making an impact.

Chairman, CEO and president Tim Timken said in a news release

that losses in the fourth quarter of 2015 were less than expected — and pointed to innovative efforts as a reason why.

“While we continue to feel the impact from weak global commodity markets and high customer inventory levels, our cost reduction efforts and pace of new business from innovation reduced the losses we anticipated in the quarter,” Timken said in the release. “We expect 2016 to be another challenging year, so our focus will continue to be on cash generation while maintaining industry leading customer service. We will continue to manage through this cycle in a way that will generate value for shareholders and make us stronger as markets recover.”

But that outlook hasn’t kept some analysts from calling for a company sale. A February 2016 note on TimkenSteel from KeyBanc Capital Markets stated that it saw “more value in TMST’s assets being consolidated or privatized (in the case of Ellwood Group) than in remaining a stand-alone entity.”

Justin Bergner, a research analyst for industrials at Gabelli & Co., said he believes the company will only remain independent for a few more years. An independent company of its scope is a “dinosaur” in the steel industry, he said. He’s recommending the stock, as the company is a niche player in areas like seamless bar products and had little debt on its balance sheet going into the market compression. TimkenSteel also has the benefit of time, he said, and can wait out the downturn if it can minimize cash bleed. The company’s debt-holders don’t want to force it into bankruptcy, he said.

Bergner said the company cares about its employees and won’t sell to just anyone, but he does see a sale in the future.

But when asked, TimkenSteel sounds like it intends to be around for the long haul.

“We believe that operating as an independent company ensures a focus on the unique business model that makes us successful,” Milicia said in an email.

20160328-NEWS--37-NAT-CCI-CL_--

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9:01 AM

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CRAIN’S CLEVELAND BUSINESS z MARCH 28 - APRIL 3, 2016 z PAGE 37

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COMMERCIAL SPACE OFFICE AND RELATED SPACE FOR THE U.S. GOVERNMENT The General Services Administration (GSA) is seeking offerors to provide and maintain an office building under a long-term lease arrangement: Location: Central Business District (“CBD”) of Cleveland, OH defined as: North: Lake Erie, South: Carnegie Avenue, East: East 17th Street, West: Cuyahoga River. Square Footage Requirement: The successful Offeror will provide a building consisting of a maximum of 122,000 net rentable square feet equating to 108,850 ANSI/BOMA usable square feet of office and related space plus 175 on-site secured/enclosed inside parking spaces, meeting U.S. Government specifications. Building must be a single tenant facility for the sole use of the Government. Subleases will not be considered. Offered facility shall not be in the 100 year flood plain. Offered facility must have setbacks of 80 feet. 24-hour access to the space is required. Offered space must meet Government requirements for fire safety, accessibility, seismic and sustainability standards per the terms of the Lease. A fully serviced lease is required. Term of the lease will be for twenty (20) years firm. If you desire to be considered, please forward a letter of interest by Thursday, March 31, 2016 making reference to Project 6OH0241, Request for Lease Proposal (“RLP”) Number GS-05PLOH19554 to: Ms. Jean Dawson, Contracting Officer, General Services Administration, Real Estate Division, 230 South Dearborn Suite 3300, Chicago, Illinois 60604 Phone: (312) 353-0940 Facsimile: (312) 353-9628 Email address: jean.dawson@gsa.gov

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20160328-NEWS--38-NAT-CCI-CL_--

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9:06 AM

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z MARCH 28 - APRIL 3, 2016 z CRAIN’S CLEVELAND BUSINESS

Wrap-Tite rebounds, finds its niche

BY BILL BREGAR Plastics News

Wrap-Tite Inc. of Solon has moved forward to become a niche maker of stretch films — shaking off a $500,000 wire transfer fraud in 2014, after it bought a Chinese cast film line.

“The big thing we want to emphasize is that, even after the setbacks that we had in the last two years, we learned a lot, and now we have become a niche player in the marketplace,” said company president Sunny Daga.

Wrap-Tite makes specialty cast film products such as color films, pre-stretched film, anti-static films, and volatile corrosion inhibitor (VCI) film, that are used when wrapping steel coils or other products so they will not corrode.

The company does slitting and rewinding operations. Wrap-Tite can convert film it manufactures into nearly any shape, including narrow widths such as three-inch and five-inch film, and even as small as one-inch wide, Daga said.

Daga said big film extruders don’t want to play in those niches — making Wrap-Tite a rare company that both extrudes and converts its own film in so many niche varieties.

Wrap-Tite now runs two cast film lines made by China-based Xinle Huabao Plastic Machinery Co. Ltd. One line can run three-layer film.

The other, a five-layer line, allows the company to put in layers of specialty resins to give the film custom features, such as stiffness or extra stretchiness.

Both lines have Scantech scanners that control thickness and feed

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Suresh Bafna, left, and Sunny Daga founded Wrap-Tite Inc. in 2001. (Bill Bregar) back to the machine, in a closed loop.

The manufacturing operation — the two cast lines and 12 pieces of equipment for converting such as slitting, pre-stretching and rewinding — is housed in a 110,000-squarefoot building across the street from the 90,000-square-foot headquarters. Wrap-Tite owns both buildings.

Wrap-Tite was founded in 2001 by Daga, who had worked at Avery Dennison Corp., and Suresh Bafna, a family friend. The company focused on packaging supplies, selling stretch film made by another company, plus adhesive tape, bubble wrap mailing envelopes and gloves.

Wrap-Tite had been buying its stretch film from a supplier in China, and converting it in Solon. The two companies had a good relationship. Daga and Bafna wanted WrapTite to extrude its own stretch film,

so they bought a used cast film machine.

The Chinese film supplier recommended its own cast film machinery supplier, Xinle, as a quality company, and the Wrap-Tite owners thoroughly checked out Xinle at NPE 2012, and in visits to China. They bought a machine and made a $200,000 down payment that went through successfully. Then, after Bafna visited and saw the machine run, they wired the balance of $500,000 — to what turned out to be a phony account.

Hackers had digitally altered the company logo and seal, and emailed Wrap-Tite with an account with a new number and name — and listed a different bank than the one for the down payment. The hackers addressed some specific details about Wrap-Tite’s machine.

Realizing the scam — which did

not come from Xinle — Daga and Bafna contacted their local police, the Federal Bureau of Investigation, and even Interpol, and Bafna traveled to China to meet with the bank and Chinese police. Nothing. Xinle tried to work with police, but the authorities would not take their complaint because the company was not the “victim.”

So the money was gone. And Plastics News, a sister publication of Crain’s Cleveland Business, reported the scam.

“After we promoted our story, we got a lot of calls from people that were conned exactly the same way,” Bafna said. “If they would have come forward when it had happened to them, maybe they would saved headaches for a lot of people afterward.”

Daga and Bafna said Xinle has been a good supplier. The Chinese

machinery maker gave Wrap-Tite a $100,000 discount on its first Xinle machine. They ended up buying a second, much more automated Xinle line, without a special discount.

Wrap-Tite has stopped using its first, used, film line.

Daga said the company invested money to upgrade the manufacturing plant, installing new lighting, painting the floor and adding clear lines marking foot and forklift traffic.

The partners added cranes on the production floor to help employees lift the heavy rolls of film. They installed five silos inside the building for the linear low density polyethylene. The plant has Maguire blenders and loaders.

They added a Polystar repelletizing line to recycle its scrap, most of which gets sold. Six months ago, they added a process control chiller.

“Essentially we have all the necessary infrastructure to make almost any product,” Bafna said.

Daga said Wrap-Tite keeps an inventory of 80 to 100 truckloads of film available for immediate shipment.

But it hasn’t been easy.

“It was very painful, because the learning curve was, first the hacking and then getting into a new field (cast film), and having the first, used machine, which was bought locally, not being state-of-the-art equipment,” Bafna said.

Now Wrap-Tite is looking ahead.

“Now we have gone through all of that learning curve. We understand what we’re doing very well, and we do it very well. And we want to be successful and do a good job,” Daga said.

Bregar is a senior staff reporter at Plastics News.

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20160328-NEWS--39-NAT-CCI-CL_--

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8:39 AM

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CRAIN’S CLEVELAND BUSINESS z MARCH 28 - APRIL 3, 2016 z PAGE 39

The List

MONEY MANAGERS Ranked by assets under management locally TOTAL ASSETS UNDER LOCAL MANAGEMENT WITH DISCRETION (MILLIONS)

COMPANY THIS ADDRESS YEAR PHONE/WEBSITE

DEC. 31, 2015

DEC. 31, 2014

TOTAL NUMBER OF LOCAL % CHANGE ACCOUNTS

MINIMUM PORTFOLIO INDIVIDUAL ANALYSTS ACCOUNT (THOUSANDS) ON STAFF

(1)

COMPENSATION FOR SERVICES

CHIEF INVESTMENT TOP LOCAL EXECUTIVE OFFICER TITLE

1

Victory Capital Management Inc. 4900 Tiedeman Road, 4th Floor, Brooklyn 44144-2302 (216) 898-2400/www.vcm.com

$10,318.1

$11,244.1

-8.2%

187

NA

21

Percentage of assets under management

NA

David C. Brown chairman, CEO

Boyd Watterson Asset Management LLC 1801 E. Ninth St., Suite 1400, Cleveland 44114 (216) 771-3450/www.boydwatterson.com

$6,087.3

$5,343.5

13.9%

316

$1,000.0

NA

Fee only, percentage of assets under management

Brian L. Gevry

2

Brian L. Gevry, CEO, CIO; Timothy M. Hyland, Michael E. Bee, James R. Shirak, managing partners

3

AB Bernstein 127 Public Square, 50th floor, Cleveland 44114 (216) 263-8090/www.bernstein.com

$4,754.6

$4,403.6

8.0%

NA

NA

NA

Percentage of assets under management

Seth Masters

Shane McRann Bigelow managing director

4

Ancora Holdings Inc. 6060 Parkland Boulevard, Suite 200, Cleveland 44124 (216) 825-4000/www.ancora.net

$2,636.0

$2,223.0

18.6%

816

$500.0

23

Percentage of assets under managment

John P. Micklitsch

Frederick D. DiSanto chairman, CEO

5

Wasmer, Schroeder & Co. 1111 Superior Ave., Suite 965, Cleveland 44114 (216) 622-0000/www.wasmerschroeder.com

$2,099.0

$1,986.7

5.6%

760

$1,000.0

0

Percentage of assets under management

Michael J. Schroeder

John S. Majoros III Thomas N. Richmond Jr. principal, portfolio managers

6

Carnegie Investment Counsel 30300 Chagrin Boulevard, Pepper Pike 44124 (216) 367-4114/www.carnegieinvest.com

$1,206.0

$1,027.0

17.4%

824

$500.0

8

Fee only

Richard L. Alt

Gary P. Wagner, Richard L. Alt, Arthur G. Merriman III, principals

7

Oak Associates Ltd. 3875 Embassy Pkwy., Suite 250, Akron 44333 (330) 668-1234/www.oakfunds.com

$930.0

$928.0

0.2%

50

$3,000.0

3

Percentage of assets under management

Mark W. Oelschlager James D. Oelschlager

Robert D. Stimpson portfolio manager

$794.1

$760.2

4.5%

334

$250.0

12

Percentage of assets under management; fee only

Jeffrey N. Malbasa

8

Spero-Smith Investment Advisers Inc. Terminal Tower 50 Public Square, Suite 2700, Cleveland 44113 (216) 464-6266/www.sperosmith.com

Robert C. Smith, chairman, CEO; Jeffrey N. Malbasa, president, chief investment officer

$674.0

$679.4

-0.8%

231

$500.0

3

Percentage of assets under management

Diane M. Stack

9

North Point Portfolio Managers Corp.

5910 Landerbrook Drive, Suite 160, Mayfield Heights 44124 (440) 720-1100/http://nppmcorp.com

Ronald J. Lang president, secretary

10

Winslow Asset Management Inc. 3333 Richmond Road, Suite 180, Beachwood 44122 (216) 360-4700/www.winslowasset.com

$609.0

$730.8

-16.7%

133

$1,000.0

4

Percentage of assets under management

Gerald W. Goldberg

Gerald W. Goldberg chairman, chief investment officer

Beese Fulmer Private Wealth Management 220 Market Ave. South, Suite 1150, Canton 44702 (330) 454-6555/www.beesefulmer.com

$458.0

$438.0

4.6%

437

$500.0

NA

Percentage of assets under management, fee only

Dennis S. Fulmer

11

Dennis S. Fulmer president, principal

12

Van Cleef Asset Management Inc. 3201 Enterprise Parkway, Suite 140, Beachwood 44122 (216) 464-0253/www.vancleefinc.com

$351.6

$347.2

1.3%

NA

NA

5

Percentage of assets under management

Geoffrey C. Hauck Lino Sergo

Geoffrey C. Hauck Martin J. Burke Jr.

13

RAV Financial Services LLC 2000 Auburn Drive, Suite 400, Beachwood 44122 (216) 831-4900/www.ravfinancial.com

$300.2

$331.9

-9.6%

310

$500.0

2

Fee only

David M. Taucher

Robert A. Valente CEO

14

Jentner Wealth Management 3677 Embassy Parkway, Akron 44333 (330) 668-1000/www.jentner.com

$279.1

$280.6

-0.5%

203

$1,000.0

5

Percentage of assets under management

Martin A. Weisberg

Bruce A. Jentner president

15

Elizabeth Park Capital Management 29525 Chagrin Blvd., Suite 318, Pepper Pike 44122 (216) 292-5777/http://elizabethparkcm.com

$272.7

$271.6

0.4%

50

$250.0

NA

Fee plus percentage of assets under management

NA

Fred Cummings president, portfolio manager

16

Private Harbour Investment Management & Counsel 29525 Chagrin Blvd., Suite 110, Pepper Pike 44122 (216) 292-5700/http://privateharbour.com

$220.5

$264.0

-16.4%

200

$500.0

NA

Percentage of assets under management

James A. Blue

James A. Blue managing member, CEO, CCO

17

Midwest Investment Management LLC 1301 E. Ninth St., Suite 1110, Cleveland 44114 (216) 830-1110/www.mimllc.com

$218.9

$228.5

-4.2%

516

$500.0

5

Fee only, percentage of assets

Norman F. Klopp

Norman F. Klopp managing partner

18

Winfield Associates Inc. 700 W. St. Clair Ave., Suite 404, Cleveland 44113 (216) 241-2575/www.winfieldinc.com

$204.3

$161.0

26.9%

201

$500.0

6

Fee only, percentage of assets under management

William W. Baker

William W. Baker president, CIO

19

Reed Financial Services Inc. 3690 Orange Place, Suite 240, Beachwood 44122 (216) 464-2090/www.reed-financial.com

$198.1

$196.0

1.1%

312

$250.0

2

Percentage of assets under management

James M. Reed

James M. Reed president

20

Cornerstone Wealth Management 835 Sharon Drive, Suite 280, Westlake 44145 (440) 899-4000/www.cornerstonewealthmgmt.com

$164.7

$158.6

3.8%

176

$0.0

4

Percentage of assets under management

Nick Dionisos

David A. Gomersall president

21

Broadleaf Partners LLC 9 Aurora St., Suite 5, Hudson 44236 (330) 650-0921/www.broadleafpartners.com

$130.8

$119.1

9.8%

280

$250.0

NA

Percentage of assets under management

Doug MacKay

Doug MacKay, CEO, CIO Bill Hoover, president

22

Shaker Investments 3690 Orange Place, Suite 400, Cleveland 44122 (216) 292-2950/www.shakerinvest.com

$119.0

$128.2

-7.2%

39

$250.0

4

Percentage of assets under management

Edward P. Hemmelgarn

NA

23

Sigma Investment Counselors 30195 Chagrin Blvd., Suite 210 N, Pepper Pike 44124 (888) 718-1132/www.sigmainvestments.com

$55.4

$46.7

18.6%

39

$1,000.0

2

Percentage of assets under management

Denise Margolis Farkas

Denise Margolis Farkas, chief investment officer; Anthony Basalla, portfolio manager

RESEARCHED BY DEBORAH W. HILLYER Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Business lists and The Book of Lists are available to purchase at www.crainscleveland.com.

(1) Companies on the Money Managers list are registered investment advisers with the Securities and Exchange Commission and have full discretionary control over where all of their clients' money is invested. This criteria is in

keeping with the standard used by our sister publication, Pensions & Investments.

20160328-NEWS--40-NAT-CCI-CL_--

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A GROWING

COMMITMENT

Benesch continues to grow, both in bench strength and geographically. We have recently welcomed 40 new attorneys throughout the firm and opened a new office in Chicago. And there’s more to come. It’s all part of our ongoing commitment to continuously enhance the quality of service we provide to our clients. They deserve it— and so do you.

Left to right: Corporate & Securities—Michael Mozes, Andrew Murphy, Sean Peppard, Ryan

www.beneschlaw.com

Williams; Real Estate & Environmental—Kathryn Gaydos, Kelly Dees Noll, Jared Oakes, Joel Pentz, Kathleen (Kate) Vlasek, Bryan Wilbert; Litigation—William (Bill) Alleman, Elizabeth (Betsy) Batts, Yelena Boxer, Joseph (Joe) Castrodale, Isaac Eddington, Elizabeth Emanuel, Andrew Fiorella, Patrick Fitzpatrick, Robert Haffke, Andrew Jarzyna, Richard Kalson, Thomas Lidbury, Warren McClurg, Justin Monday, Jeffrey Niemczura, Gregory Phillips, Andrew Poltorak, David Pope, Gary Price, Brian Ramm, Brittany Shaw, Jonathan Todd, James (Jim) von der Heydt; 3iP—Stephen Scanlon, Michael Sherban; Commercial Finance & Banking—Gaetano Savelli; Health Care—Victoria Stephenson, Darrell Taylor; Of Counsel—Mark Weller; General Practice—Nancy Chawla If you’re interested in joining our growing, dynamic team please contact Laura Dutt, Director of Recruiting, ldutt@beneschlaw.com.

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VOL. 37, NO. 13

REAL ESTATE: Tower City Breaking down Dan Gilbert’s big buy

MARCH 28 - APRIL 3, 2016

THE AKRON EDITION

P. 4

MANUFACTURING: Resolve TimkenSteel sturdies itself post-spinoff P. 5

CLEVELAND BUSINESS

SPORTS BUSINESS

Cleveland’s highest-paid athletes PAGES 16-18

WINE: Tuscan touch

TOURISM: Play on

BUSINESS: Study up

Canton vineyard gives

Akron convention bureau

Akron leaders take report’s

patrons taste of Italy — P. A1

lures athletic events — P. A2

results to heart — P. A3

Source Lunch with Bill Ryan, president of the Center for Health Affairs — Page 34

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Venture fund lets students learn ins, outs of investing

BY DAN SHINGLER dshingler@crain.com @DanShingler

Gervasi Vineyard brings a bit of Italy to Canton

BY DAN SHINGLER dshingler@crain.com @DanShingler

Canton is home to Gervasi Vineyard. (Contributed photo)

If you’re thinking of renting a place in Tuscany, don’t bother – there’s really nothing available. Every “Seinfeld” fan knows that, right?

But you could always go to Canton.

If you think that’s not the same, well, you’re right – it hit 60 degrees in the Tuscany region of Italy this winter, while temperatures in Canton on some days hovered in the 20s.

But the inside of the resort facilities at Gervasi Vineyard still looked and felt a lot like Italy.

But then, that’s the point.

“We’re an upscale, Tuscanthemed winery – that’s how I explain us,” says Nichole Cardinale, marketing manager for Gervasi. “The idea is that you’ve escaped into Tuscany – you’re not in Canton any longer.”

Mission accomplished – just about every inch of the place is covered with marble, stone, wine bottles, fireplaces, and Italian furnishings and décor – and about anything

else you might see if you Googled “Tuscany.”

But Gervasi is actually much more than a winery – though it is that, too.

What was once the Jabberwocky Tree Farm in Canton has become a winery and full-service, 55-acre resort with six four-suite villas and a working vineyard – along with multiple bars and restaurants. It all sits around a 5-acre lake that offers views for every villa and a scenic spot for photos for weddings, which is a key element of Gervasi’s business.

And it’s all because Ted Swaldo gets bored easily.

Swaldo owned and ran ASC Industries Inc., an automotive waterpump manufacturer in Green, until 2009, when he sold it after 32 years in business. But the leisurely life of retirement in Florida didn’t suit Swaldo for long – only about a month, in fact. After that, he was back in Northeast Ohio looking for something to do and got the idea for Gervasi. Less than a year later, he was open for business, initially as SEE GERVASI, PAGE A8

Students at the University of Akron and Kent State University are learning more about business from their extracurricular activities than they might in any MBA school.

That’s because they – along with students from Walsh University, Notre Dame College, Case Western Reserve University and the College of Wooster – are spending much of their spare time working as venture capitalists.

Not as interns at some firm or at a pretend fund that’s investing play money – the students do real due diligence on area companies that are seeking to raise capital, and they put real money at risk with their investments, too. But only after a lot of consideration, arguing and homework, of course.

The Northeast Ohio Student Venture Fund (NEOSVF) got its start in 2008 at the University of Akron, said NEOSVF secretary Daniel Hampu, who also works at the UA Research Foundation helping to commercialize technology. But the fund really got its footing in 2014, when the Hudson-based Burton D. Morgan Foundation and Ohio’s Third Frontier Fund provided the students with $250,000 to invest.

If the investments pay off, the money will go back into the fund, just like a regular venture capital fund, Hampu said. So if the students do well, there’s no telling how large the fund could become for future participants. But for now, investments are limited to $25,000. Students from all of the schools have so far agreed upon and made eight investments. And while it’s too soon for such investments to have paid off, the target companies all appear to be doing well, Hampu said.

The schools are now conducting their due diligence on this year’s finalist companies and have whittled down more than a hundred applicants to one per school. In April, student representatives of the particiSEE INVESTING, PAGE A3

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Firestone Stadium is among the athletic venues in Summit County that can be utilized by youth and amateur groups. (Contributed photo)

Convention bureau launches sports tourism division

BY JUDY STRINGER As Akron mayor Dan Horrigan reviews and prioritizes the sweeping suggestions from his Blue Ribbon Task Force, city leaders can check one recommendation off the list.

Last month, the Akron/Summit Convention & Visitors Bureau announced the creation of the Sports Alliance of Greater Akron, a new division charged with securing sporting events. The bureau tapped its own destination sales manager, Brittany Wigman, to head the initiative and has launched PlayAkron.com, a website promoting the region and its sports facilities.

Getting a shout-out from the task force was a welcome show of support, said Jim Mahon, vice president of marketing and brand management for the bureau, yet the sports alliance had been in the works for well over a year.

“It really just sort of validated where we thought opportunity existed,” Mahon said.

That opportunity, he said, lies largely in youth and amateur sporting events. The area has played host to a wide range of events — from youth soccer tournaments and high school championship basketball games, to BMX races and shuffleboard competitions.

In 2015, the Akron/Summit CVB booked 74 sports-related events, according to Mahon. More than 60% of those were youth competitions.

Local marketers, of course, are not alone in targeting athletic events.

About 110 of these special sports organizations can be found in the U.S., according to the National Association of Sports Commissions (NASC).

Some, like Akron’s, are divisions of municipal or regional convention and visitors bureaus, said Don Schumacher, executive director of the Cincinnati-based trade group. Most are independent organizations like the Greater Cleveland Sports Commission.

The need to establish a special unit – either internally or as an inde-

pendent group – has as much to do with managing the athletic business as it does with marketing local assets, Schumacher added.

“We kind of joke that the work starts when they say ‘yes,’ not before,” he said. “If you sell a convention, meeting or trade show, the company or organization has a meeting planner … and they go ahead and plan the event.

“With a sports event – let’s say it’s a girls fast-pitch tournament – who’s going to market the event? Who’s going to cut the grass? Who’s going to put the lines down? Who’s going to make the infield smooth? Who will be hosting the teams? Where will they stay?”

‘They come, they stay, they spend’ NASC estimates that 25.7 million Americans traveled for a sports-related event in 2014, dumping $8.96 billion into the economies they visited. While many people tend to think of the big-ticket events like the Super Bowl or NCAA Final Four, most sports tourism is tied to participation events – think Little League tournaments, 10K races and gymnastics meets.

“There are thousands of events like that out there,” Schumacher said, adding that each event brings not only athletes, but often coaches, family and friends. “They come, they stay, they spend.”

In many cases, Wigman said, families are planning little mini-vacations around sporting events.

Take the decade-old King James Shooting Stars Classic. In 2015, the annual April event brought 38,000 players, ranging from second grade to high school, and another 15,000 family and friends to Akron, she said. It generated $4.9 million in accommodations, dining, retail and entertainment over two days.

The new sport alliance’s charge ultimately is to attract similar events that produce overnight stays in Summit County, she said. That

The King James Shooting Stars Classic brings thousands of young players to Akron. (Contributed photo) means taking the PlayAkron message to national venues, such as the NASC trade show in Grand Rapids, Mich., next month.

“We will be able to meet with [event organizers], hear what their needs are and look for opportunities to work together,” Wigman said.

Such a stage is the next step, Mahon explained, to securing Greater Akron’s spot as a regional and national sports destination and building on its credibility as host to a handful of successful and wellknown events, including the Akron Marathon, All-American Soapbox Derby and World Golf Championships-Bridgestone Invitational.

Blurring the lines Greater Akron’s interest in getting a piece of the billion-dollar sports tourism pie dates back to 2008, when Summit County joined forces with neighboring Medina, Portage and Stark counties in the creation of Sp4rts Ohio.

“It allowed us to individually book on different pieces of business because we were able to reach out and give you soccer fields in Medina County, which are only a stone’s throw away,” Mahon said. “Or Canton was able to have events, but they needed some of our sleeping rooms.”

The four counties teamed up to help accommodate athletic events at their fields, stadiums and arenas for several years. By 2015, however, Akron was the only CVB still actively using the Sp4rts Ohio name for its sports marketing business, which caused a “disconnect,” Mahon said, because the brand was not designed to be specific to the city of Akron or Summit County.

The launch of the Sports Alliance of Greater Akron, however, does not mean an end to collaboration between the counties. Ties will remain strong with nearby Canton and Stark County, in particular, he said, where the first phase of a planned $500 million build-out at the Pro Football Hall

of Fame campus includes the construction of a 23,000-seat football stadium and multiple youth fields.

In 2017, the state high school football championship will return to Canton, which also regularly hosts the state swimming and diving championships, ASA/USA softball tournaments, as well as dart and pool tournaments, according to Tonja Marshall, director of sports tourism for Visit Canton.

It is not unusual for the two counties to need each other’s hotel rooms and/or specialty athletic venues.

This will be especially true as the two counties grow their sports business and land larger events, Marshall said.

“Visitors pay no attention to county lines,” she said. “It does not matter if they are playing in a venue in Akron or a venue in Canton, the probability is that at some point they are going to make their way to visit places like the Pro Football Hall of Fame or might end up staying in a hotel in Stark County.”

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‘62.4 Report’ is serving as more than just words

BY DAN SHINGLER dshingler@crain.com @DanShingler

Reports and studies – they come and they go. Some think tank comes to town, issues a report about the state of things and, after causing a few excruciating meetings, their work heads off to a dusty shelf or forgotten hard drive.

The recent the “62.4 Report: Profile on Urban Health and Competitiveness in Akron, Ohio” by the Columbus-based Greater Ohio Policy Center (GOPC) and commissioned by the John S. and James L. Knight Foundation might be different. Some of the folks hoping to further improve the city hope that the report is.

“I carry the ‘62.4 Report’ in my bag both as a resource and a reminder of the work we have in front of us,” said Nicole Mullet, an active civic leader in Akron and executive director of the city’s ArtsNow nonprofit. And she said that in midMarch, a full month after the report was released.

True, even Mullet admits that’s a little “nerdy, even for me.”

But the report, named for the size of Akron in square miles, is being quoted by voices of influence around town.

Akron’s new mayor, Dan Horrigan, cited it when he helped unveil a new Summit County workforce initiative, Conexus – which even addresses some of the very things discussed in the ‘62.4 Report.’

The CliffsNotes version of the re-

port reads something like this: The last time anyone really looked, in 2008, Akron was doing fairly well at rebounding from the loss of its major industry – rubber and tire production. That was when the Brookings Institution held the town out as an example of an old industrial city on the rebound.

Since then, however, Akron has been stalled a bit. It has lost population, seen vacant homes and has not attracted large numbers of young professionals. This is what the GOPC found when working on its report between September 2015 and January – though, to be fair, much of the data available to researchers was from 2013.

The point is, it found some problems and it didn’t sugarcoat them.

Things had taken a turn for the worse since 2008, when the Great Recession hit Akron’s working-class population especially hard.

“We were surprised at just how different a picture it was,” said GOPC deputy director Alison Goebel. “We knew that Akron wasn’t quite punching above its weight class the way it was previously, but we didn’t expect to find the downturn to the extent that we did.”

‘Poised for greatness’ Not that all is lost. The report also cited Akron’s great potential – strong community support, engaged new young people stepping into active roles and a vibrant arts scene – on top of the city’s usual assets as a transportation hub, center of the polymer industry and home to the

University of Akron.

“Because of that great base, Akron is well positioned to bounce back higher and faster than other communities might be. That was one of the conclusions we came to – Akron is still poised for greatness,” Goebel said.

To help Akron get that bounce, the report had some recommendations – based on case studies of other so-called industrial “legacy” cities that have been particularly springy as of late.

Recommendations include things like continuing to focus on downtown development, neighborhood housing and providing training to unskilled residents so that they can work in growing industries, such as health care.

There are already indications that city leaders are on the same page – page 20 of the report, that is. The Conexus program is an effort to get local residents into training programs like “coding boot camps,” which prepare people to work in information technology. Conexus also will make local students aware of which educational paths line up with the best local job opportunities.

And there are indications others are paying attention to the report as well.

“We want to make sure that we internalize the message that’s being sent,” said Suzie Graham, president of the Downtown Akron Partnership.

Graham, whose very job description pretty much includes advocating for city living and fighting sprawl, agrees with the report’s authors that Akron should keep the foot on the

gas in terms of continuing to develop its core downtown, which has made a significant comeback from its bleak days of decades past.

“I think it’s a great time for us to start thinking differently, and I would love to see the (report’s) city-first approach take hold.”

— Suzie Graham, president Downtown Akron Partnership.

“I think it’s a great time for us to start thinking differently, and I would love to see the (report’s) cityfirst approach take hold,” Graham said.

Graham also supports another recommendation of the report: working harder to attract and keep young people in the city.

That’s a great way for the city to leverage the downtown location of the University of Akron, which attracts most of its students from suburban areas – students who are increasingly looking to live in an urban environment after they graduate.

Mullet agreed, and she’s particularly jazzed up about recommendations in the report about nurturing and engaging more young leaders in the city through efforts like Akron’s Torchbearers leadership development program.

Mullet said she and her peers are also turning to the GOPC report, along with the Akron Blue Ribbon Task Force report that also came out in February, in their strategic thinking.

“The recommendations of the Blue Ribbon Task Force reflect the findings in the ‘62.4 Report.’

“I believe that many of us are using information gained from both publications as tools to better inform our work in the urban core,” Mullet said.

And both Mullet and Graham might reflect one of the most important assets in Akron’s urban leadership – optimism.

While neither took issue with the recent report’s criticism, they also agreed with its reasons for optimism.

“Just because you get ranked somewhere today doesn’t mean that’s where you have to sit tomorrow,” Graham said.

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pating schools will decide on one company — possibly two — that will receive actual investments.

Students run the show Hampu, who is also active with the Akron ARCHAngels investment group, is an old hand at the investment game compared to the students – but he says he tries hard to stay mostly out of their investment debates so that they can make the decisions themselves. He does provide guidance, but the students seem to have no trouble asking questions that are both intelligent and probing.

At a recent meeting, which students allowed a reporter to observe, the questions came fast and furious – and sounded a lot like the questions most professional venture capitalists would ask. The students were considering an investment in an Akron company that makes spun fibers and is seeking to imitate the strength and characteristics of thread spun by spiders to make a new commercially available material.

“What have they done to protect their intellectual property?” asked one student.

“They’ve raised some money already … How quickly are they going through it?” asked another.

A third asked the question that keeps many more experienced ven-

ture capitalists awake at night: “Shouldn’t we be investing based on whether we’re going to get paid back?”

Hampu smiled through it all, patiently answering questions when asked. The company seemed to impress most of the student investors after presenting to them in person previously.

Of course, Hampu and the students hope that if they do make the investment, it will pay off. But even if they lose the entire $250,000 in the coming years, it seems likely they will have gotten an education worth at least that much.

Entrepreneurs in the making “Now I can sit on the other side of the table and see – what are investors looking for?” said University of Akron MBA student and Buffalo native Vishal Chaurasia.

And that might be the real point of the entire project. Many of the students, including Chaurasia, are not so much angling to work for venture capital firms, but aiming to be entrepreneurs who pitch to venture capitalists themselves. Chaurasia, for example, has his undergraduate degree in polymer mechanical engineering from UA. He plans to use his two degrees, along with his knowledge of venture capital, to one day become

UA student Jamie Parker is a member of Northeast Ohio Student Venture Fund team and an entrepreneur. (Dan Shingler) an entrepreneur.

“I want to get things into the marketplace where they can improve people’s lives,” he said. “But I enjoy the whole thrill ride of entrepreneurship – it gives me a rush, I won’t lie!”

Jamie Parker has a similar attitude.

He’s a native of the Bronx, N.Y., and a member of NEOSVF . He’s pursuing a doctorate in integrated bio-science at UA. He has a master’s degree in biology and a bachelor’s degree in anthro-biochemistry from Lehman College in New York.

Parker’s not waiting, either. He’s promoting his own clothing line under the brand “Me O’Clock” and designing a smartphone app on the

side. By participating in NEOSVF, Parker is learning a lot of things he would have never learned in a classroom, he said.

“Absolutely I’m learning a ton, and it’s connecting me to some great people … I’ve had a lot of great conversations that have helped build me up on things I didn’t really know much about,” Parker said.

That includes not only Hampu and some of the CEOs of companies that present to the students, but also people like Jon Paul, president of Akronbased Prime Marketing Pros. Paul said he’s used to working with new businesses – it’s a big part of what his firm does – but he loves what he sees

in students like Parker, whom he mentors.

“There are some incredible ideas going on in that group,” Paul said, citing things like a device that can produce clean water for field hospitals and doctors, as well as smartphone apps like Parker’s.

Paul, for one, is not surprised when he hears that a student wants to become an entrepreneur.

“That’s how they think,” Paul said.

“People now say that in order to be successful, you’ve got to have your 9to-5 job, and also your 5-to-9 job – and that’s what they’re doing.”

And that might be the biggest reason that NEOSVF has received support, both monetary and otherwise.

Economic developers know that for the region to thrive, it will not only need smart students trained in business and technology, but also a new crop of entrepreneurs.

In fact, supporting new entrepreneurs is a chief mission of the Morgan Foundation.

That’s because just a few successful entrepreneurs could have a lasting effect on many other students looking for companies to work for right here in Northeast Ohio.

It could also leave future students an even bigger venture fund to manage, so they can learn even more about investing money and how to secure it as capital for themselves.

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Akron Symphony Orchestra gets creative in attracting new audience members

BY MARTHA MUELLER NEFF Go ahead.

Clap at the wrong time.

You could even cough, sneeze or guffaw at inappropriate moments. The folks with the Akron Symphony Orchestra don’t care.

In fact, they know they’re doing their jobs when there is clapping between movements: They got someone who has never experienced classical music into a seat at E.J. Thomas Performing Arts Hall in Akron.

And they’ve enticed another person away from his or her smartphone, laptop, iPad or other device for live music.

“It’s OK to just experience it for what it is,” said Paul Jarrett, executive director of the ASO since 2012.

“Clap at the wrong time — that’s awesome!

We know that someone there is new.

“If there are people there in jeans and a Tshirt, it’s OK. “Just come. We still have work to do as an industry to bring people to hear the music.”

That message of inclusiveness is echoed among ASO staff and others in Akron who acknowledge the city — known for its gritty, industrial past and sleepy downtown populated mostly by University of Akron students — is on the cusp of a renaissance.

It’s attracting millennials, young professionals and even baby boomers who appreciate the ease of living in Akron and Summit County.

And the ASO wants to capitalize on the new energy while keeping its longtime fans.

“With all the energy in the arts sector right now, it’s the perfect time to introduce people to the orchestra,” said Heather Roszczyk, the new director of marketing and public relations for the ASO, during a recent interview. “We have been reaching out to the community.

“This could go down as one of the most collaborative seasons in the orchestra’s history.”

Here are just a few things ASO is doing to keep its longtime music fans and attract new ones:

FAST FACTS ON THE ASO WEBSITE: akronsymphony.org FOUNDED: 1949 ANNUAL CONCERTS: Seven classical, three pops; five free concerts presented each summer BUDGET:

MUSICIANS: 82 contract musicians AKRON SYMPHONY CHORUS MEMBERS: 100 GOSPEL CHOIR MEMBERS: 189 AKRON YOUTH SYMPHONY AND AKRON YOUTH PHILHARMONIC STUDENTS: 200 FULL-T TIME STAFF: Six TICKET PRICES: $12.50-$55

Above: The Akron Symphony Orchestra performs with a gospel choir in “Gosepl Meets Symphony.” Below: Paul Jarrett, ASO executive director, and Heather Roszczyk, ASO director of marketing and public relations. (Above: contributed photo, below: Shane Wynn)

z Browns ticket swaps. To make fans of the hapless Cleveland Browns a little happier, the ASO offered a deal in which anyone could bring a 2015 Browns ticket stub to E.J. Thomas Hall, and the staff handed off one seat to the Dec. 11 holiday pops show, conducted by music director Christopher Wilkins. z Gospel get-together. The ASO continued its 23-year tradition of “Gospel Meets Symphony,” bringing “together talent from all over the region and makes us one community year after year.” z Brain music. The group brought psychiatrist and pianist Richard Kogan for a “Music and the Mind” concert in February. Kogan performed and lectured about creativity, the brain and the dark side of creative genius. z Crowdsourced creativity. The ASO helped to create a sonic phenomenon with composer Clint Needham for Sounds of Akron, a symphony using sound submissions from the public. It premieres April 16 at E.J. Thomas Hall. z Youth outreach. The ASO’s Youth Orchestra is among the longest-running in the nation, and the ASO musicians go into classrooms and many other venues where they will reach people who may not ever have been exposed to their music.

Operating, $2.1 million; endowment, $5.5 million

Roszczyk and Jarrett are among a growing chorus of ASO enthusiasts helping to expand the reach of the orchestra.

That effort is part of a larger and collaborative arts push in Akron and Summit County.

Take, for instance, the robust website SummitLive365.com, which has become the go-to place for everything arts in Summit County.

“What I love about what Heather’s doing is that she’s showing the symphony is for everyone,” said Nicole Mullet, executive director of ArtsNow, a new group that connects and supports artists and other creative endeavors across Summit County, mainly through Summit Live 365.

“She does such a fabulous job conveying that. … They’re maintaining the audience they’ve had and engaged a new audience.”

It’s tempting to think the ASO is competing with other smaller classical groups and the 800-pound gorilla in the room, the esteemed

Cleveland Orchestra, which summers at Blossom Music Center just a few miles from Akron.

But Roszczyk said that’s not where the ASO’s competition lies.

“We’re not just competing against other orchestras. We’re competing against bars and other entertainment,” she said.

Jarrett added that the Akron Symphony is a “much better regional orchestra than other regional orchestras in the country” because the Cleveland Orchestra is so nearby — all the musicians benefit from the collaborations that happen regularly.

“There’s a rich classical music culture here,” Jarrett said. “We’re all the beneficiaries of that.”

People are busy and money is tight. So it’s important that when they do go out, they enjoy themselves.

“And we want to provide that for people,” Roszczyk said. “In Akron, we have an incredi-

bly talented roster [of musicians], but we also can have a little fun.”

The ASO budget for 2016 is about $2.1 million, which includes a $175,000 grant from the John S. and James L. Knight Foundation.

The ASO spends about 76% on programs, 17% on administration and 7% on fundraising; it clears about $13,000 “in a good year,” Jarrett said.

Its budget has remained the same for years, he added.

Single-ticket sales are up, subscriptions are down, just as in arts organizations across the country, Jarrett said, because people are reluctant to make long-term plans and want more flexibility.

But both he and Roszczyk said the ASO programming consistently attracts crowds to the 2,955-seat E.J. Thomas Hall.

The ASO rarely compares attendance numbers year over year, but according to Roszczyk, the numbers have stayed virtually the same for the past three years.

In 2014-2015, for example, 19,978 people attended the classics, pops and specials concerts.

“While it may sound odd, we don’t necessarily strive for growth each year,” Roszczyk said.

“Rather, for each concert, we set a target based on what we think that individual program can achieve. In some cases, the goal might be small, but we choose to present the program for artistic reasons. If we hit the goal, we’re happy.”

The orchestra has reached out to several small groups of concertgoers in the 25- to 40year-old age group to find out what they’re looking for in an arts experience. Jarrett said they are surprised by what they’ve heard from these focus groups.

“People like the excuse to turn their phones off for two hours,” he said. “People like coming to the orchestra and disconnecting.”

Roszczyk said the ASO demographics are still in the 50- to 70-year-old range, but that she “would like to start skewing that a little younger” by targeting young professionals, college students, elementary school students and families — people like herself, “boomerangs” who have come back to the region where they grew up after working in other areas, people attracted to the rising arts culture in Akron.

“At the end of the day, our job is to make great classical music,” Roszczyk said.

“Just because it’s Bach doesn’t mean it’s boring.”

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www.felberpr.com | 330.963.3664 We’ll make your competitors pay attention.

Trish Ostroski, left, and Audrey Wallace attend the opening session of the Community Leadership Institute for Women on March 18 at Akron’s Hilton Garden Inn. The Women’s Network of Northeast Ohio launched the program last year with Leadership Akron. (Contributed photo)

Grant gives Women’s Network a home, chance to focus on long-term outlook

BY JENNIFER CONN The Women’s Network of Northeast Ohio wants to put out a call to corporate Akron.

“We want them to understand the value of moving women up through the organization,” said Kirsten Lino, Women’s Network board president and a vice president at FirstMerit Bank. “It makes your company more profitable.”

Companies must train and retrain, she said, because turnover is expensive.

And the Women’s Network even wants to partner with businesses to be their training arms for women.

Since its inception nearly 40 years ago, the network has served as a predominantly volunteer organization to support the area’s women in business. Today, with a $194,807 grant from the John S. and James L. Knight Foundation in hand, the membership-based group still offers training, but it’s now creating branding and marketing for programs that will generate sustainable revenue streams for long-term viability.

The Knight grant also will enable the organization to hang its shingle at a brick-and-mortar space in the Akron Global Business Accelerator and hire a small full-time staff.

With about 200 members, the Women’s Network has been busy — last year it served 492 women through its various programs.

To understand how it could best offer support, the network recently completed a three-year strategic plan that was developed, in part, from surveys and focus groups that asked Akron women, businesses and other community constituents what is lacking for women in business, Lino said.

The plan identified three areas in which women need support — for-

mal professional education, leadership training and entrepreneurial support.

As it works to fill in those blanks, the network has consciously avoided duplicating other business-focused programs, instead promoting collaboration with other groups, Lino said. This has helped attract funding and sets the network apart from other organizations in town.

“We’re not territorial about our programming, and we’re willing to play in the sandbox with anybody,” Lino said. “We’ve created community support by not cannibalizing other programs, and by inviting folks to the table. We’re not going to create another business-plan writing class when there are already several of them in town.”

Making connections According to Kyle Kutuchief, Knight Foundation program director for Akron, the Women’s Network is important to the area because its programming also contributes to the attraction and retention of talent.

“If someone takes a job at a company in this area, we have a very short window of time as a community to connect them with this place, to make them fall in love so they want to stay,” he said. “If we don’t make that case pretty fast, they leave. Women’s Network is an excellent organization to connect them to the community.”

To ensure its programming can make those connections, the Women’s Network leverages speakers, collaborators, coaches and community partners such as Leadership Akron, the Akron Global Business Accelerator, Economic Community Development Institute, Akron SCORE and the Burton D. Morgan

Foundation.

More than networking, the programming is rooted in in-depth training and education because women still have workplace challenges to overcome.

According to Lino, women are missing out on experiencing the more satisfying career trajectories of their male counterparts because of a lack of management training.

“It’s a never-ending cycle for women,” she said.

“Many women don’t know how to position themselves, promote themselves, brag about themselves. Oftentimes they don’t know how to negotiate a promotion.”

But companies that don’t develop women lose out, she said, because women who don’t feel like they’re being developed leave the organization.

In answer to this, one of the network’s most popular programs for members is its year-long Thrive mentoring program.

Thrive is contracted out to an executive coaching organization that offers high-level professional development training, including fostering leadership, emotional intelligence, communication and self-promotion skills.

Partnering with companies To generate lasting revenue, the Women’s Network is looking to offer similar programs to Akron companies.

“Let us be your training arm for your women leaders,” Lino said.

“Why should they take their human resources budget and create this internally when we already have the infrastructure in place?”

The network also works with women entrepreneurs through its SEE NETWORK, PAGE A7

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AKRON ENTREPRENEURSHIP: Tobin Buckner

How do entrepreneurs come up with great ideas?

Every successful business begins as an idea. But how do those ideas form? How is it that some people seem to pull game-changing concepts out of thin air, while others struggle to come up with even one original business idea?

There is a lot of mythology surrounding entrepreneurs and their ideas. But it’s not magic. And while there are no surefire formulas for success, that doesn’t mean there aren’t ground rules. Here are just a few of them:

Good ideas solve problems I have spoken personally with numerous entrepreneurs whose biggest ideas stemmed from experiences that frustrated them. Take Jeff Hoffman, a member of the founding team of Priceline.com. Hoffman’s big idea came from his frustration over trying to navigate the inefficient process of purchasing airline tickets and dealing with customer service at the airport. Without the problem,

there would have been nothing to solve.

Pinpointing the problem is the first step, but successful entrepreneurs also have a knack for determining what it will take in time and money to test their potential solution. Neglect this market-testing phase at your own peril. Even if the results are not positive, it’s always better to fail quickly and cheaply than prolong the agony by sinking more time and money into an idea that doesn’t actually solve a problem.

Yes, failure.

Most successful entrepreneurs fail at some point and are forced to adapt repeatedly before they eventually find success. The story of Facebook (originally named The Facebook) is a perfect example. It’s hard to imagine Mark Zuckerberg as anything but a visionary, but his first foray into social media was little more than an online portal built to rate the looks of the girls at Harvard. Needless to say, it took revisions to create today’s 1.5 billion user empire.

Reject the genius myth

Even the best ideas will fail without hard work

Many assume that the entrepreneurs who come up with great business ideas and then turn those ideas into successful enterprises must have some kind of “genius gene.”

While most entrepreneurs are reasonably intelligent, it’s not their IQ that propels them to success, but a combination of hard work, good luck and failure.

Perhaps the most destructive myth for young entrepreneurs is that there are some ideas so good they are predestined to succeed. Just find one of these ideas, the story goes, and you’ll never work another day in your life.

Nothing could be further from the truth. There is no substitute for hard

work. In fact, many entrepreneurs will tell you that they have to work twice as hard as they did when they were somebody else’s employee in order to succeed at building their own business.

“Perhaps the greatest factor that determines whether or not an entrepreneur will be successful isn’t the business idea itself, but rather the entrepreneur’s willingness to try (and keep trying) to turn the idea into reality,” Samer Kurdi, then global chairman of the Entrepreneurs’ Organization, told The Wall Street Journal in 2013. “Great ideas are abundant, but it’s what we decide to do with them that counts.”

So, how do entrepreneurs come up with all of these great ideas? Perhaps the more important question is whether entrepreneurs are willing to do what is necessary to build upon their idea once they’ve found it.

That, more than any other factor, will determine whether or not they succeed.

Tobin Buckner is JumpStart’s Akron entrepreneurial community manager and contributes a monthly column about entrepreneurship in the region.

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THE MAIN COURSE

Flury’s Café cooking up more business in new Cuyahoga Falls spot

BY JENNIFER CONN For Flury’s Café owner Kimberly White, life has taken some quick and unexpected turns.

When White graduated from Kent State University in 1994 with a degree in fashion design, she had no intention of buying Flury’s Café on Sackett Avenue in Cuyahoga Falls.

Her plan was to quit waitressing, which had gotten her through college, and find a job in her field.

Even so, two weeks after graduation, White took advice from her grandmother, Emma Raper, a Flury’s regular, and bought the cafe with assistance from her parents and Raper.

For the next 21 years, White and a staff of about five people operated Flury’s in the same place Lee and Bertie Flury had launched the breakfast and lunch spot in 1968.

For the first two years, Grandmother Raper waited tables. White’s aunt, Sherry Barnhart, still waits tables, and her mother, Sandy White, cooks on Mondays.

White had no intention of moving Flury’s Café from its Sackett Avenue address. But move it she recently did, to the corner of Front Street and Portage Trail, where her front door faces the Cuyahoga River and large windows allow patrons at the streetfacing counter an almost-panoramic view of Front Street’s walking mall.

White had been holding out for the Sackett Avenue location to be eventually offered for sale.

even know if I can go in there.’”

She since has hired a prep cook to relieve some of the pressure.

A fun space

Kimberly White owns Flury’s Cafe in Cuyahoga Falls. (Shane Wynn) Instead, her landlord unexpectedly changed, the Front Street location opened and she went for it.

“It was a fluke,” White said.

“I went from buying the building we were in and staying there for the rest of my life to suddenly moving here.”

Flury’s Café, open for breakfast and lunch Monday through Saturday, draws a larger crowd in its new space, she said, yet seating capacity is 35, comparable to the old address.

Her Sackett Avenue regulars followed her to Front Street and, more visible here, she gets heavier walk-in traffic.

‘This is a pan cake’ Known for its made-from-scratch dishes, Flury’s features signature pancakes, which are adapted from a recipe found long ago called “Big Sunday Pancakes.” What’s different?

They’re made like cake — with lots of sugar, butter and eggs, White said.

“This is pan cake,” she said, emphasizing the word cake. “It’s supposed to be sweet. They’re delicious.

Who cares if they’re healthy?”

Clearly not her regulars, because Flury’s signature pancakes (that’s how they’re listed on the menu) are a top seller, White said. So are eggs Benedict, the French chicken sand-

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Empower program, which draws on collaboration with community resources to help women launch, grow and manage all types and sizes of businesses. “We assist with that all the boots on the ground stuff, which makes a huge difference for women,” Lino said.

Amy Wong, president of Akronbased Dot Org Solutions, has been a Women’s Network partner for the past 18 months, helping the board identify sources of funding and potential community partners.

Wong, who recalls no Akron leadership programs available for women in 2009 when she launched her company, is now enrolled in the Community Leadership Institute for Women (CLI), a pilot program the network launched last year with Leadership Akron.

“I’m a business owner, but I’m talking with people who are thinking about having a business or have different business interests completely,” she said. “It’s a huge melting pot of people who probably wouldn’t have had much chance of getting together had it not been for a program like this.”

Lino refers to the program as a gap filler.

“We’re simply answering something that doesn’t exist in the community,” she said. “There wasn’t a dedicated women-based entrepreneur program in town. CLI is the

Diana Selzer, left, and Roberta Rogers at the recent Community Leadership Institute for Women meeting. (Contributed photo) first of its kind in Northeast Ohio.”

Thinking strategically According to Kutuchief, the Knight Foundation also recognized the huge amount of volunteer effort the Women’s Network board had been investing in these programs.

“This is a very strong volunteer board, picking up bagels for the morning meeting and turning out the lights after the evening event,” he said. “This [grant] will allow them to be more strategic and more externally focused in working with community leaders, and that’s a very

good thing for Akron.”

The network is also working to create a scholarship program so women of lower incomes or nonprofit leaders with smaller budgets can participate in the programs.

The Knight grant will help the network become more sustainable, but more importantly, it will help women who have a desire to lead and succeed in business, Lino said.

“I don’t want it to be said women are the underdog,” she said. “I think we’re all these hidden superheroes.

We just need to find our superpower and flex those muscles.”

wich, potato pancakes and the veggie omelet, among others.

Things are going well in the new spot, but the move was a big adjustment, White said.

At the Sackett location, she was able to spend more time out front and enjoy her customers’ feedback.

The place on Front Street keeps her in back of the house, where she does most of the cooking herself. As a result, she doesn’t get as much positive input.

“I used to cry before I came in,” she said. “It’s just a lot busier here.

The seats are more (practical), and there’s the view of downtown and the river. I’d get up and say, ‘I don’t

White calls Flury’s décor “eclectic.” Transferred from the Sackett location, a set of mirrored New York City skyline panels hang on one wall, while the sun images of local artist Cari Miller are for sale on another.

A string of stained-glass star lanterns hangs in the bay window facing Portage Trail, assorted vintage kitchen appliances are strategically placed, and a large retro dinette set in turquoise and chrome is the crown jewel of the dining room.

One of her regulars sometimes scouts vintage shops, and from time to time swaps out the wall hangings behind the lunch counter.

“I don’t have enough time,” White said, waving a hand at the wall. “I say, ‘I’ll cook and you guys do this.’ ” The walls also display articles announcing the café’s multiple rankings as one of Urbanspoon’s best Cleveland-area restaurants.

Flury’s also has been named one of America’s best diners by Road Food magazine.

Flury’s sandwich buns are baked fresh in-house, a variety of vegetarian dishes are available and the hand-dipped shakes come in eight flavors. Daily specials can include anything from cinnamon rolls or cornmeal pancakes to chicken cordon bleu sandwiches and peanut butter cookies.

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GERVASI CONTINUED FROM PAGE A1

mostly a wine bar – but he had far bigger plans.

He also had a lot to work with. Not only did the tree farm leave behind 55 acres of scenic land, it also left the lake, an 1830s farmhouse and plenty of room for just about anything else Swaldo wanted to build.

It just needed work.

“You couldn’t even really see the lake then,” Cardinale said as she walked around the water near quaint bridges and live white swans that inhabit the place year-round.

Today the place includes more than most people likely think even exists within the confines of Canton – or Northeast Ohio, generally, for that matter.

“A lot of people say it also reminds them of Napa (California),” Cardinale said.

And it’s become a destination for many locals, who use it for parties, business meetings, romantic weekend getaways and weddings – lots and lots of weddings.

“We have weddings every weekend, all season long,” Cardinale said. “Last summer, our villas were consistently at 97% occupancy.”

On top of the six villas, the farmhouse also offers lodging – it’s often used by bridal parties during weddings.

Then there’s The Bistro, Gervasi’s original upscale Italian restaurant, and the more casual Piazza restaurant.

The Crush House is where the wine is made, but it’s also a café’ during the day and a lounge in the evening.

The Cucina brings in top chefs and wine experts to offer cooking classes and wine tastings.

A 200-seat pavilion offers guests a place to relax or to hold parties and receptions with live music.

Cardinale declined to say how much money has been put into the facility, but it’s safe to say it’s a multimilliondollar investment.

And it’s a success, Cardinale said.

Not only is the place pretty much full from spring through fall, but its restaurants have won accolades from local patrons and its wines have won some prestigious awards.

Winemaker Andrew Codispoti gets much of the credit for the quality of Gervasi’s wines – and so does his mother.

An Italian immigrant, Codispoti learned winemaking from his mother, who’s in her 80s and still lives in Italy.

He uses grapes grown on-site for some wines and buys fruit from California and other warmer climates to produce wines that require grapes that won’t grow in Ohio.

“But my mother still calls me to make sure I do everything right,” he joked.

He must be doing most things right – Gervasi’s wines won three gold medals in the 2015 Ohio Wine Competition, following two silver medals and a gold medal it won in the competition in 2014.

All of it has made Gervasi a top destination and given the city of Canton another feature to brag about, said David Kaminski, vice president of the Canton Regional Chamber of Commerce.

“It’s in the city of Canton – and it’s an amazing place,” Kaminski said.

It’s a well-known spot to most folks in Canton, but it’s also been drawing guests and attention from all over, according to Kaminski, who along with the rest of the chamber works to spread the word about Canton’s little corner of Tuscany.

The 55-acre Gervasi Vineyard site in Canton includes several restaurants and bars, including The Crush House, where wine is made.

The site also includes a working vineyard, six villas and a 5-acre lake. The decor and furnishings at Gervasi are reminiscent of Tuscany.

(Contributed photos)