Crain's Cleveland Business by Crain's Cleveland Business

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MetroHealth eyes next suburban targets Medical centers to south, west could be added to new, $23 million Middleburg Hts. location By TIMOTHY MAGAW tmagaw@crain.com

MetroHealth’s long-held desire to have a dramatic presence beyond its main campus on West 25th Street in Cleve-

land’s urban core got a big boost last week when the hard-pressed health system opened the doors of its $23 million health center in Middleburg Heights. Next for colonization by MetroHealth could be the adjoining suburbs of

Brecksville and Broadview Heights to the south, and Lakewood and Westlake to the west. Sitting on 10 acres on Pearl Road just off Interstate 71, the gleaming, 57,000square-foot structure in Middleburg Heights is the physical manifestation of a plan hatched under former CEO Mark Moran and focused on extending MetroHealth’s reach into residential communities throughout Cuyahoga County.

The plan was touted as the central component of propping up MetroHealth’s battered finances by bringing more Medicare and commercial-insured patients — and thus more revenue — into the health system’s coffers. Though Mr. Moran never would disclose the other communities in which MetroHealth planned to build, his successor, Dr. Akram Boutros, did not hesitate See METRO Page 6

Boutros

INSIDE Selling the fans on saving Mark Shapiro, right, and the Cleveland Indians are trying to change the way you purchase baseball tickets. But is the Tribe’s push working? PAGE 3

High-tech grants are behind, but wait! JANET CENTURY

ABC the Tavern in Cleveland’s University Circle neighborhood added a patio in late June that seats about 50 and cost less than $10,000 to build.

OUTSIDE IS WHERE IT’S AT C

By LAURA STRAUB clbintern@crain.com

Area restaurants say patio seating is well worth the investment — and the hassles

Third Frontier has yet to award 86% of budget, though big dough still may flow By CHUCK SODER csoder@crain.com

leveland only gets about 89 sunny days a year, says Trace Althoff, general manager at ABC the Tavern on Uptown Avenue in the city’s University Circle neighborhood. But even with Cleveland’s unpredictable weather, ABC is among the legion of restaurants and bars that continue to add patio seating to please patrons who’d prefer to sit in the great outdoors.

Though 2013 is half over, a large majority of the $236 million the state has set aside to fund high-tech economic development projects this year has gone untouched. The Third Frontier Commission has awarded just $33 million in grants to technology companies and projects so far this year, or 14% of its 2013 budget.

See OUTSIDE Page 21

See GRANTS Page 6

NEWSPAPER

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SPECIAL SECTION

WHO TO WATCH We profile some of the many who are making their mark in the legal community ■ Pages 11-18 PLUS: Q&A WITH LEADERS ■ PHOTOS FROM EVENT AT THE Q

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CRAIN’S CLEVELAND BUSINESS

COMING NEXT WEEK

JULY 15 - 21, 2013

CALLING ALL DIY-ERS If you’re looking for a cheap house to buy and renovate, Cleveland is a good place to be. There are more than 51,000 bank-owned homes in the country that were built before 1960 and have an estimated market value below $100,000 — homes with the greatest fixer-upper potential, according to RealtyTrac, an online foreclosure marketplace. Here’s a list of the 10 cities with the most such properties:

An extended look ahead What will Cleveland be like in the future? Crain’s will take a look at that next week with a special report, “CLE 2030: Facing the Future.” We will explore what has to be done now to make the city a better place to live, work and play for generations to come.

City

REGULAR FEATURES Classified ....................20 Editorial ........................8 From the Publisher ........8 Going Places ...............10

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Personal View................8 Reporters’ Notebook....22 The Week ....................22 What’s New..................22

Homes

Detroit Chicago Cleveland St. Louis Cincinnati Philadelphia Milwaukee Phoenix Toledo Birmingham, Ala. Source: RealtyTrac; www.realtytrac.com

INTRODUCING

3,773 1,649 1,318 1,021 1,016 865 846 763 724 694

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Kevin Kleps (kkleps@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Michelle Park (mpark@crain.com) Finance Rachel Abbey McCafferty (rmcafferty@crain.com) Manufacturing and energy Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams

UA Law’s Public Health Law & Science Center (PHLSC) and Health Law Certificate Program Focused on Community Service Law and regulation traditionally lag behind science, sometimes by decades. The Public Health Law & Science Center (PHLSC) recognizes that effective and timely law and regulation should work hand in hand with science and technology to improve the human condition. Focused on Education Public and private sector employers are moving away from a focus on what new health lawyers know, and instead toward what new health lawyers can do with what they know. UA’s Health Law Certificate Program provides skills training and externships to meet a one to two year experience prerequisite many employers require. This experience will help graduates hit the ground running in their first years of practice. To learn more, please contact: Katharine Van Tassel Professor of Law Director, Public Health Law & Science Center and Health Law Program The University of Akron School of Law 330-972-6403 vantassel@uakron.edu

uakron.edu/law/health

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Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Chris Crain: Executive Vice President, Director of Strategic Operations Brian D. Tucker: Vice president Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Mary Kramer: Group publisher G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleveland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation

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CRAIN’S CLEVELAND BUSINESS

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Crain’s wants your help for Forty Under 40 It’s time to dust off your portfolios and strut your stuff as Crain’s Cleveland Business solicits candidates for the 2013 version of its annual Forty Under 40 section. In the Nov. 18 issue, Crain’s will profile 40 individuals under the age of 40 who already have made names for themselves in Northeast Ohio’s business and civic circles. Candidates can nominate themselves or be nominated by someone else. The only catch is that their birthdays must be on or after Nov. 19, 1973. To nominate someone, check out the Crain’s Awards tab on our website. Or, send background information of no more than a single page on your nominee to editor Mark Dodosh at mdodosh@crain.com or via regular mail at 700 W. St. Clair Ave., Suite 310, Cleveland, 44113. Please include the nominee’s date and year of birth. Nominations must be received by the close of business on Monday, Aug. 5.

INSIGHT

School’s woes were too weighty Chancellor president blames accreditation uncertainty for coming closing; critics question university’s leadership By TIMOTHY MAGAW tmagaw@crain.com

Despite Chancellor University’s ongoing woes, particularly concerning its accreditation, the school’s president, Bob Daugherty, had insisted in recent years that the institution formerly known as My-

ers University was poised to emerge as a leader in online business education. Last week, that oft-repeated company line was kicked to the curb when the small, for-profit college in Seven Hills announced it would close in late August, a move that marks the end of an institution

that over the last 165 years has operated under several names, including Dyke College. Chancellor gave no reason for its closure in the initial July 8 announcement. However, in a July 9 interview with Crain’s, Mr. Daugherty said it ultimately was the school’s repeated accreditation problems, fi-

nancial woes brought on by poor enrollment and the political pressures facing the for-profit education sector in general that soured Chancellor’s chances at Daugherty survival. “The uncertainty around accreditation directly correlated with the See WOES Page 19

Budget’s wrinkles are tough to iron out State legislation has plenty of nooks and crannies that could prove to be significant By JAY MILLER jmiller@crain.com

Did you give up barbering and now want to get back in the business? Well, you now have six years, instead of just three, to re-apply for a license without taking the state exam. Lose money at the casino? Sorry, but even though the federal government allows you to deduct some of those losses on your IRS Form 1040, you no longer will be able to deduct them from your state income tax. The state tax department estimates that change will bring in $29 million a year. Like an English muffin, the 20142015 state budget signed June 30 by Gov. John Kasich had more than its fair share of nooks and crannies baked into it — as well as a few snuffed out by a gubernatorial veto. An income tax cut, a sales tax hike, the ending of a property tax rollback, Medicaid expansion and abortion were the issues that made headlines as House Bill 59, the biennial general revenue fund budget, traveled from the governor’s budget office to the General Assembly and back to Gov. Kasich’s desk for his signature. See BUDGET Page 5

LEON HALIP/GETTY IMAGES

The Cleveland Indians’ $117 million free-agent haul in the offseason — headlined by Nick Swisher — hasn’t translated to a box-office boom.

DYNAMICS OF BUYING EARLY Indians are encouraging fans to purchase tickets in advance, and it’s a move that has been met with some resistance

By KEVIN KLEPS kkleps@crain.com

he Cleveland Indians are trying to change the way you buy baseball tickets — and they are succeeding, to an extent, though the effort has yet to translate into bigger crowds at Progressive Field. See EARLY Page 19

THE WEEK IN QUOTES “This is about winning people’s hearts each and every day. … People have the right to choose, and we need to provide the best quality service at the right cost so people continue to select us.”

“We’re taking food from the earth that is at its peak freshness, and showing people why and what we’re doing is so delicious and unique. We want to show people what it means to be farm to bar.”

Dr. Akram Boutros, CEO, MetroHealth. Page One

Dave Hridel, bar manager, Spice Kitchen + Bar. Page 9

“To me, the issues of health equity are issues of conscience and issues of social justice.”

“Health insurance and access to health care is something I used to take for granted because I’ve always had it.”

Marie B. Curry, managing attorney, Community Legal Aid Services Inc. Page 12

Julie Chernitski, staff attorney, Medical Mutual. Page 16

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nated field of manufacturing. It has an active presence on social media, a regularly updated blog, an ementoring program on its Grealis website and monthly webinars on topics of interest to its members. It also is launching its own jobs board for members to post their resumes and for manufacturers to post notices of openings. These efforts come at an interesting time in manufacturing, as studies reveal women have been losing manufacturing jobs as men gain them. According to a March 2013 study by the National Womenâ&#x20AC;&#x2122;s Law Center, women in manufacturing lost about 18,000 jobs from January 2010 to February 2013 â&#x20AC;&#x201D; after the recession had ended. Men gained about 535,000 jobs over that period. By contrast, men and women lost jobs in manufacturing at a similar pace during the recession. According to the law centerâ&#x20AC;&#x2122;s study, womenâ&#x20AC;&#x2122;s employment in industry fell by 17% from January 2008 to January 2010, while menâ&#x20AC;&#x2122;s employment declined 16%.

The other half of the pool Jobs in manufacturing offer a host of benefits for women, Ms. Grealis said, from flexible schedules to higher salaries, but people donâ&#x20AC;&#x2122;t always know about the positives. She thinks manufacturing suffers from an image problem and said marketing is a â&#x20AC;&#x153;key challengeâ&#x20AC;? for manufacturing. Women in Manufacturing has been trying to help change that perception, such as with its â&#x20AC;&#x153;Hear Her Storyâ&#x20AC;? feature on its blog. The feature highlights a woman in manufacturing sharing her struggles in the field and discussing what her job is like on a day-to-day basis. Examples so far have included a recent chemical engineering graduate who had started a job as a process engineer in Mississippi and a Brigham Young University student who had helped found the first campus chapter of Women in Manufacturing Trying to reach the next generation of potential women in manufacturing isnâ&#x20AC;&#x2122;t a big focus for the still-young group, but is part of its long-term mission, Ms. Grealis said. Brigham Young reached out to the organization, but Women in Manufacturing is creating a tool kit for campuses with similar requests in the future. Women are a key source of talent, Ms. Grealis said, but unless a company is perceived as friendly to women, it wonâ&#x20AC;&#x2122;t attract them as

â&#x20AC;&#x153;You donâ&#x20AC;&#x2122;t want to focus on just half the pool.â&#x20AC;? â&#x20AC;&#x201C; Allison Grealis, director, Women in Manufacturing networking group, on businesses needing to be perceived as being welcoming to women candidates. With an aging population in the skilled trades, many companies are looking for qualified people to fill the gaps. â&#x20AC;&#x153;You donâ&#x20AC;&#x2122;t want to focus on just half the pool,â&#x20AC;? Ms. Grealis said. According to a survey conducted last summer by accounting and consulting firm Deloitte and the Manufacturing Institute, women make up nearly half the total labor force and earn more than half of the associate, bachelorâ&#x20AC;&#x2122;s and masterâ&#x20AC;&#x2122;s degrees in the country. But they only make up about a quarter of the durable goods manufacturing labor force.

Beyond the old boysâ&#x20AC;&#x2122; club As president of Interlake Industries Inc., a metal stamping company based in Willoughby, Lisa Habe views the groupâ&#x20AC;&#x2122;s goal of trying to bring more women into industry as a positive one. To fill the gap left by retiring employees, manufacturers must be as friendly as possible to everyone, she said. The organization is a good way for women in manufacturing to see there are other women in the same position, Ms. Habe said. The discussions at the groupâ&#x20AC;&#x2122;s events arenâ&#x20AC;&#x2122;t necessarily any different than what would be heard at a general interest manufacturing event, but the setting makes for a more comfortable conversation for women because itâ&#x20AC;&#x2122;s â&#x20AC;&#x153;not the good old boysâ&#x20AC;&#x2122; club,â&#x20AC;? she said. Member Kathi Bond, president of CryoPlus Inc. in Wooster, which cryogenically treats manufacturing tools to make them more durable, joined Women in Manufacturing for the networking. She said she has connected with the group via social media and has used its member lists to reach out to women-run manufacturers. She said she has found leaders who are women tend to support each other, and itâ&#x20AC;&#x2122;s important to have a network to turn to when leaders have problems or questions. Tracy Albers, research and development manager of advanced materials at GrafTech International in Parma, just joined Women in Manufacturing in February after receiving a complimentary membership as part of an industry award. She just began as a manager at GrafTech in January, overseeing a group of all men at the manufacturer of graphite electrodes and related products. Ms. Albers said she has found the webinars especially useful in learning more about what other women in leadership positions have encountered. There arenâ&#x20AC;&#x2122;t many young women in the industry, she said, and she thinks itâ&#x20AC;&#x2122;s interesting to hear the perspective of other women in her field. â&#x2013;

Volume 28, Number 28 Crainâ&#x20AC;&#x2122;s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright ÂŠ 2013 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 Crainâ&#x20AC;&#x2122;s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136

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Budget: Lowering tax burden is ‘goal’ continued from PAGE 3

But there are many more tax and business bits and pieces in the fine print of the 3,747-page budget, which totals $62 million over a twoyear budget period. Among the changes affecting the most businesses were modifications of the commercial activity tax. This so-called CAT tax in 2005 replaced a corporate franchise tax based on net income with a tax based on gross receipts. At present, businesses with taxable gross receipts of less than $1 million pay a tax of $150. Businesses with gross receipts of more than $1 million pay $150 on the first million and are taxed at 0.26% on everything over the first million. According to Mark Engel, of the Cincinnati office of the Bricker & Eckler law firm, the new budget raises the tax on that first million for businesses with more than $1 million in annual gross receipts. A business with gross receipts between $1 million and $2 million now will pay $800 on that first million. One with gross receipts from $2 million to $4 million will pay $2,100 on the first million, while those with gross receipts of more than $4 million will pay $2,600 on the first million — an increase of $2,450. “How significant is that?” Mr. Engel asked rhetorically. “For businesses in the $5 million to $10 million range or the $10 million to $25 million range, the increase is an annoyance — an additional $2,450 may or may not be significant to them. But when you’re talking about a gross receipts tax, which is right off the top before any expenses, that could be significant (for a smaller business), especially if you’ve got a thin margin. The Legislative Service Commission estimated that change would bring in an additional $86 million in CAT receipts a year. Mr. Engel also is concerned about what he described as a “compliance glitch” that the CAT change appears to create. The new budget requires payers of the CAT to pay the minimum tax due by May 10 of each tax year. That would be OK if that minimum tax was $150 for everybody, as it had been. But now, he said, a taxpayer may not know what the tax on their first million will be until the books close at the end of the year. “The question is, is there going to be a penalty for (underpaying) that or is there going to be interest for that?” he said. “We don’t know.”

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that requires the Amazons of the world to collect a sales tax, this budget item would make sure these digital downloads are taxable. And with this budget the state is trying to nudge Congress along. Several new sections of the sales tax law help Ohio match the Streamlined Sales and Use Tax Agreement, an accord reached by a coalition of states. The states hope to push online sales tax collections by making collection practices more uniform. “Hopefully, Congress will pass a law that says that if you are a member of the Streamlined Sales initiative you can require remote sellers to collect sales tax,” Mr. Engel said. “Right today it doesn’t mean any-

thing, but if Congress passes the right legislation, bang, we can start getting those sellers to start collecting Ohio sales tax.” On the veto front, the governor eliminated sections of the budget bill that would have made eligible for some state real estate development tax credits those projects that didn’t qualify for federal tax credits. In addition, he kept in place a $5 million cap on historic rehabilitation tax credits, thwarting a legislative attempt to raise the cap on a single tax credit to $10 million. “It is the goal of this Administration to lower the tax burden on all Ohioans instead of increasing targeted tax credit,” the governor wrote in his veto message. ■

First National regional HQ will be downtown ON THE WEB Story from Public Square. First National Bank, the largest www.crainscleveland.com Vincent J. Delie subsidiary of F.N.B. Jr., F.N.B. presiCorp. (NYSE: FNB) of Hermitage, dent and CEO, said in a news Pa., said it plans to establish its rerelease, “We're excited about the gional headquarters in downtown opportunity to establish operations Cleveland as part of its pending acin Cleveland's central business quisition of Solon-based PVF Capital district, an indication of our commitCorp., the parent of Park View Fedment to the Cleveland business eral Savings. community.” First National said it has leased The new Cleveland office will space on the 14th floor of the 55 house professionals from commerPublic Square office building and cial and retail banking, wealth will establish a downtown branch on management and private banking, the building's first floor by Nov. 1. F.N.B. said. An F.N.B. spokesDrawings that First National plans to woman said in an email that the ask the Cleveland City Planning company does not yet have estiCommission to approve show signif- mates of the number of jobs the icant signage atop the 22-story company will bring downtown. building on the northwest corner of — Stan Bullard

THEIR STORY INVOLVES INK, EMBROIDERY AND THE OCCASIONAL HEAVY METAL BAND.

Ready for battle online Besides raising the sales tax to 5.75% from 5.5%, the new budget for the first time includes magazines in the category of goods subject to sales tax. The legislation also adds several wrinkles that appear to prepare the state for the coming sales tax battle with online retailers. The budget adds a tax on digital downloads from sources such as iTunes and e-book stores.At the moment, shoppers have an obligation to report online purchases of taxable items to the state and pay the equivalent of the sales tax that bricks-and-mortar retailers forward to the state. Of course, it doesn’t happen and the state has no way to police the collections. It would rather collect the tax from the out-of-state retailers, but they have balked at that notion. However, should the federal government pass an “e-fairness” law

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Metro: New center â&#x20AC;&#x2DC;draws you inâ&#x20AC;&#x2122; continued from PAGE 1

from doing so during a phone interview last Wednesday, July 10. Dr. Boutros said MetroHealth was eyeing a piece of land split between Broadview Heights and Brecksville for a health center similar to the Middleburg Heights operation. It also is considering new or expanded operations westward in Lakewood and in Westlake near Crocker Park. While he said his crystal ball is â&#x20AC;&#x153;kind of fuzzy,â&#x20AC;? Dr. Boutros expects MetroHealth to make an announcement about where it plans to build within the next six to nine months. â&#x20AC;&#x153;We think we have a good design we probably would like to replicate,â&#x20AC;? said Dr. Boutros, himself a former health care consultant who took over June 1 as MetroHealthâ&#x20AC;&#x2122;s president and CEO. Besides the prospective suburban locations, Dr. Boutros said MetroHealth may open smaller offices for routine care in nontraditional sites such as Key Tower in downtown Cleveland or even Clevelandâ&#x20AC;&#x2122;s City Hall. He also talks of the possibility of extending care into peopleâ&#x20AC;&#x2122;s homes and workplaces and in schools. â&#x20AC;&#x153;This is about winning peopleâ&#x20AC;&#x2122;s hearts each and every day,â&#x20AC;? Dr. Boutros said. â&#x20AC;&#x153;People have the right to choose, and we need to provide the best quality service at the right cost so people continue to select us.â&#x20AC;? MetroHealthâ&#x20AC;&#x2122;s suburban splash isnâ&#x20AC;&#x2122;t necessarily a novel approach,

Call Jonathan to save Ç&#x2021;Ĺ˝ĆľĆ&#x152;Ć?Ä&#x17E;ĹŻÄ¨ Ć&#x;ĹľÄ&#x17E; Ä&#x201A;ĹśÄ&#x161; money! WĆ&#x152;Ĺ˝Ç&#x20AC;Ĺ?Ä&#x161;Ĺ?ĹśĹ? Ĺ˝ĹľĹľÄ&#x17E;Ć&#x152;Ä?Ĺ?Ä&#x201A;ĹŻ >Ĺ˝Ä&#x201A;Ĺś &Ĺ?ĹśÄ&#x201A;ĹśÄ?Ĺ?ĹśĹ? Ĺ?Ĺś WÄ&#x201A;Ć&#x152;Ć&#x161;ĹśÄ&#x17E;Ć&#x152;Ć?Ĺ&#x161;Ĺ?Ć&#x2030; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć&#x152;Ä&#x17E;Ä&#x201A; Ć&#x152;Ä&#x17E;Ä&#x161;Ĺ?Ć&#x161; hĹśĹ?Ĺ˝ĹśĆ? ^D

440-526-8700 jmokri@cbscuso.com

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as other local health systems have made significant investments in recent years in freestanding outpatient centers. This month, the Cleveland Clinic, which already has a host of suburban outposts, announced plans to add an inpatient hospital to its growing health center in Avon. Also, University Hospitals over the last month has revealed plans to acquire EMH Healthcare in Elyria and Parma Community General Hospital. However, MetroHealthâ&#x20AC;&#x2122;s move is of particular importance to the health systemâ&#x20AC;&#x2122;s mission of caring for the areaâ&#x20AC;&#x2122;s poorest residents, as officials say an infusion of paying patients could help cover the cost of providing care to those patients without insurance. Last year, for instance, MetroHealth provided $133 million in uncompensated care to the countyâ&#x20AC;&#x2122;s indigent â&#x20AC;&#x201D; a 33% increase since 2008. â&#x20AC;&#x153;We will see a different patient mix, but that is critically important to our long-term success of caring for those who have no other alternative and cannot pay,â&#x20AC;? Dr. Boutros said.

An â&#x20AC;&#x2DC;invitingâ&#x20AC;&#x2122; environment The look and feel of MetroHealthâ&#x20AC;&#x2122;s new jewel â&#x20AC;&#x201D; officially named the Middleburg Heights November Family Health Center â&#x20AC;&#x201D; is a far cry from that of the health systemâ&#x20AC;&#x2122;s aging main campus. The new building is strewn with natural light, warm colors and artwork by local artists â&#x20AC;&#x201D; design concepts rooted in the idea of creating a

calming environment for patients. â&#x20AC;&#x153;The patient really will only see the waiting area when they walk in, and not the hustle and bustle behind the scenes,â&#x20AC;? said Mary WeirBoylan, MetroHealthâ&#x20AC;&#x2122;s vice president for ambulatory operations. One of the walls in the buildingâ&#x20AC;&#x2122;s physical therapy space, for example, is laden with photos of the Middleburg Heights community. Another in the main waiting area is covered in photos of Cleveland landmarks, including the West Side Market and the Cleveland Brownsâ&#x20AC;&#x2122; stadium. The health centerâ&#x20AC;&#x2122;s design, according to MetroHealth officials, is also symbolic of the health systemâ&#x20AC;&#x2122;s ties to the community. The blue panels on the facilityâ&#x20AC;&#x2122;s exterior are representative of the Cuyahoga River and the exposed steel incorporated throughout the building symbolizes the regionâ&#x20AC;&#x2122;s ties to the steel industry. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s inviting, and it draws you in,â&#x20AC;? said Dr. Holly Perzy, the health centerâ&#x20AC;&#x2122;s medical director, whose freshly painted nails donned MetroHealthâ&#x20AC;&#x2122;s blue and green logo for the buildingâ&#x20AC;&#x2122;s grand opening. The health center will offer primary care, imaging and specialty services, among them cardiology, neurology, orthopedics, obstetrics and gynecology. It will replace the health systemâ&#x20AC;&#x2122;s bustling â&#x20AC;&#x201D; and much smaller â&#x20AC;&#x201D; health center in Strongsville, which opened in the early 1990s and is expected to close July 22. â&#x2013;

Grants: Future awards could be bigger continued from PAGE 1

Jonathan Mokri

JULY 15 - 21, 2013

So what about the other $203 million? Thereâ&#x20AC;&#x2122;s a decent chance the commission could pump more money into one Third Frontier program designed to fund particularly large projects, according to two people involved in managing the economic development initiative. But will the commission be able to spend it all this year? Probably not, according to Tom Waltermire, who sits on the advisory board that makes recommendations to the commission. â&#x20AC;&#x153;Not intelligently,â&#x20AC;? he said with a laugh. Mr. Waltermire isnâ&#x20AC;&#x2122;t upset about the low level of spending, though. The relative dearth of Third Frontier investment generally isnâ&#x20AC;&#x2122;t causing as much of a stir as it did last year, when several people involved with the program complained about what seemed to be a logjam in its awards process. Among them was Mr. Waltermire, who also is CEO of regional business attraction agency Team NEO. Mr. Waltermire said he isnâ&#x20AC;&#x2122;t the only one who would like to see the commission make awards faster. However, the confusion that surrounded the awards process last year seems to be cleared up, he said. In 2012, the Ohio Development Services Agency still was hammering out what some of the Third Frontierâ&#x20AC;&#x2122;s many programs would look like, because many of them had been overhauled or created from scratch since Gov. John Kasich was elected. Thus, $61 million from last yearâ&#x20AC;&#x2122;s budget was rolled into this yearâ&#x20AC;&#x2122;s total. Now, however, the programs are well-defined, Mr. Waltermire said. Itâ&#x20AC;&#x2122;s just taking time to solicit and

evaluate proposals. â&#x20AC;&#x153;While the money is still not flowing out as rapidly as anyone would want â&#x20AC;&#x201D; and I know the staff (at the Ohio Development Services Agency) feels this way, too â&#x20AC;&#x201D; theyâ&#x20AC;&#x2122;re working it,â&#x20AC;? Mr. Waltermire said.

Big chunks of dough The money is on the way, said Katie Sabatino, senior media strategist for the Ohio Development Services Agency, which used to be called the Ohio Department of Development. The state is seeking proposals for several Third Frontier programs, including three new ones that account for $85 million of the 2013 budget. Even if the commission awards the money allotted to all those programs, there still would be a lot of money left to spend, but Ms. Sabatino said the commission doesnâ&#x20AC;&#x2122;t need to spend all the money this year. Some of that extra money could end up in a new program designed to award cash in big chunks: $10 million to $25 million at a time. If the commission receives enough qualified proposals, it would consider expanding the size of the $50 million Technology Commercialization Centers program, according to Ms. Sabatino and commissioner Bruce Langos. The commission created that program because they want to make more big investments in projects that significantly could expand Ohioâ&#x20AC;&#x2122;s ability to create jobs in a particular technology sector. The commission could double the size of the program if the right projects come along, said Mr. Langos, who also is chief operating officer at Teradata Corp., a data analytics soft-

ware company in Dayton. Heâ&#x20AC;&#x2122;s a big supporter of a proposal being put together by about 80 Ohio organizations, including many in Dayton, that would develop technology related to unmanned aircraft, also known as drones. But winning money from the Technology Commercialization Centers program wonâ&#x20AC;&#x2122;t be easy, Mr. Waltermire said. The proposals will need to be particularly good, he said, and applicants will need to show they can raise $2 for every $1 they receive from the program.

Changed tune Last year, former Third Frontier advisory board member John Huston often was quoted for telling the board that â&#x20AC;&#x153;saboteursâ&#x20AC;? from Michigan and Pennsylvania might have taken over the Third Frontier program. Such was his concern about the low level of money the program was doling out. Mr. Huston, who still attends commission meetings even though heâ&#x20AC;&#x2122;s no longer on its advisory board, now is more comfortable with how the Third Frontier is running, especially since it started awarding money from its Pre-Seed Capitalization program. He runs the Ohio TechAngel Fund, which last December was awarded $3 million that it will use to make investments in young tech companies. Mr. Langos joked that heâ&#x20AC;&#x2122;d be OK with the idea of people from out of state taking over the program, if they made wise investments. Appointed by Gov. Kasich, Mr. Langos said the commission had done too much â&#x20AC;&#x153;rubber stampingâ&#x20AC;? on Third Frontier awards in the past. â&#x20AC;&#x153;In my opinion, itâ&#x20AC;&#x2122;s finally going in the right direction,â&#x20AC;? he said. â&#x2013;

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CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

JULY 15 - 21, 2013

PUBLISHER/EDITORIAL DIRECTOR:

Brian D. Tucker (btucker@crain.com) EDITOR:

Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:

Scott Suttell (ssuttell@crain.com)

OPINION

Dead wrong

n about a month, Chancellor University will be dead. It’s a school that should have been put out of its misery long before now, and would have been if public officials several years ago hadn’t stuck their noses where they didn’t belong. Chancellor, you see, has been the struggling, forprofit successor to Myers University, which itself ran into financial difficulties last decade. It never has been clear why the Cleveland-Cuyahoga County Port Authority felt compelled in 2004 to loan Myers nearly $6 million so that the school could buy a building near downtown Cleveland that housed its classrooms and offices. If the private school couldn’t line up enough bank financing for the purchase, then a public body such as the Port Authority had no business being the effective lender of last resort. It wasn’t as though Myers was the only option for anyone in town who desired a college education but couldn’t afford to go away to school or had to rely on public transportation to get to classes. There is, and was, the downtown campus of Cuyahoga Community College. There is, and was, Cleveland State University. And yet, here was the Port Authority extending a big loan to a school that two years later was struggling to keep its head above water. Myers would miss its first loan payment to the Port Authority in December 2006. Soon thereafter, it would wind up in the hands of a court-appointed receiver charged with untangling its financial mess. Myers almost went out of business back then. But investors came along by the fall of 2008 hoping to salvage the school, which also would gain a new identity — Chancellor University — in the process. While the the name and leadership would change, the travails of the school would not. By February 2010, Chancellor’s accrediting body, the Higher Learning Commission, had issued a “Show-Cause Order” to the school. The order meant the university had to prove it met the commission’s criteria for accreditation — a critical stamp of approval if schools expect to attract the tuition dollars of students who rely on financial aid from the government. Specifically, the commission questioned whether Chancellor met its accreditation criteria related to board governance, finances and assessment of student learning. Chancellor officials were upset with this newspaper when we published a story in August 2010 about the show-cause order. At the time, they maintained the issues that led to the show-cause order were a legacy of past leadership and that new administrators were cleaning up the school’s act. And, indeed, the Higher Learning Commission in March 2011 would continue Chancellor’s accreditation. Yet, by June 2012, the commission would issue yet another show-cause order to the school. Now, a year later, Chancellor is closing its doors. The real tragedy of the Myers-Chancellor mess of the last decade is found in the students who paid good money to take classes at a school that prospective employers likely will hold in low regard. They are the victims who will pay the price for others’ mistakes.

FROM THE PUBLISHER

Free doesn’t work in the news biz valuable news content. have run across many Crain’s CleveKey to the new business model is reland Business fans recently who quiring paid subscriptions after readers have commented (they’re much too access a certain number of stopolite to complain) on the ries in a 30-day period (in our frequency with which they’re BRIAN case, readers can read three asked to register while reading TUCKER stories before they’re asked to stories on our website. register, and another 12 before Welcome to the new world of they’re required to subscribe). digital news media. Now, The New York Times, Everyone knows the story by among the leaders in this new now. Years ago, newspaper wave of charging readers for publishers agreed with the digital access, has extended “Internet must be free” mantra that business model to its moespoused by the academics bile apps, including the newly and early adopters who announced version for the Kindle ebelieved in free dissemination of all readers. information. All of the above is part of the same thePublishers believed that they’d drive sis: The news business — for all its value so much traffic to their websites that in civic discourse — is indeed a business. they’d make the business model work, It has costs, steep ones, and must genereven though marketers only were willing ate a profit to remain viable. to pay a fraction of print advertising rates Before the lost decade or so of free disfor their digital ads. semination of newspapers’ content, cusFast forward several years, and newstomers knew they had to pay for their papers — including the one you are newspaper regardless of whether it was reading — realized they must figure out delivered to their doorstep or office. a way to pay the substantial costs associNow they know that once more, and ated with generating and distributing

we’re all off on the road to this brave new world together. ***** This fall, in a natural extension of the coverage Crain’s has given Ohio’s developing energy industry, we will be a sponsor of the first big expo in Cleveland’s new convention center, the Great Lakes Truck Expo. The Sept. 18-19 expo, which is expected to attract about 300 exhibitors and 4,000 attendees, will bring together businesses in the trucking, oil and gas, CNG (compressed natural gas) and LNG (liquefied natural gas) technology sectors. It’s the perfect gathering to showcase the immense size of the new convention center. The expo will be the venue for the awarding of Clean Fuels Ohio’s Green Fleet Awards, and also will host a benefit concert for Trucking for the Cure, an organization that raises money for breast cancer awareness, education and research. We’re proud to be a part of the event and the publisher of the expo’s show program. ■

PERSONAL VIEW

You can play a role in region’s vision By GRACE GALLUCCI and HUNTER MORRISON

What will Northeast Ohio look like years and decades into the future if we keep doing what we are currently doing? What will our communities look like, how successful will our economy be, and how much will it likely cost us, if we keep our current policies and approaches to land use, transportation and development in place? These are crucially important questions. Some in our region have been wrestling with them for some time, but as a whole, Northeast Ohio has not yet arrived at a unified vision for our future. The Northeast Ohio Sustainable Com-

Ms. Gallucci is executive director of the Northeast Ohio Areawide Coordinating Agency and Mr. Morrison is executive director of the Northeast Ohio Sustainable Communities Consortium. munities Consortium, through its Vibrant NEO 2040 initiative, is providing residents with opportunities to think about where we are heading, discuss the different potential futures this region could pursue, and eventually come to a more distinct sense of what choices we can make now that will give us the greatest chance for success. The first opportunity came in April and May when more than 600 residents

came out to attend six public workshops across the region. Those workshops looked closely at a scenario referred to as “Business as Usual,” which used current and recent data to create projected scenarios about what Northeast Ohio will be like in 2040 — if we keep doing what we have been doing. The message of the Business-As-Usual scenario is clear: continuing to do as we have done leads to more abandonment, outward migration and high costs for Northeast Ohio. In each and every community, and for the region as whole, we are facing several challenges that demand attention. See VIEW Page 9

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JULY 15 - 21, 2013

Bruell is bringing another ‘Z’ line to area Heinen’s Cleveland chef’s newest product is olive oil; are salad dressings next? KATHYAMESCARR

WHAT’S COOKING Revered Cleveland chef Zack Bruell has expanded his line of eponymous products that are sold exclusively in all Northeast Ohio Heinen’s stores, and he is anticipating this bit of business will grow. The most recent product to line store shelves is a 17-ounce extra virgin olive oil that is served in all five of his restaurants (Cowell & Hubbard, Chinato, L’Albatros, Table 45, Parallax), and is produced in partnership with California-based Corto Olive. The foray into his “Z” line began last November with a rollout of six coffee blends produced by his restaurants’ coffee supBruell plier, Caruso’s Coffee in Brecksville. Five of the blends are named for each eatery within which it is served. The artisan roaster and Mr. Bruell’s sixth blend is a “hot lips” infused with chocolate, maraschino cherries and hot pepper flakes. “The coffee line took off,” Mr. Bruell said. “We’re competing with Peet’s and Starbucks, but our coffee is fresh and local. That money is staying local.” More products may be in the works, with a line of salad dressings as a possibility. Developing a prepared foods line is another ideal product line extension, Mr. Bruell said, noting Cowell & Hubbard already applies the sous vide method of cooking at a lower temperature beef cheeks, pork shanks and other meats and vegetables in airtight plastic bags, which seals flavor. “I hope I get to do more. It’s a great marketing opportunity for me,” he said. “The Heinen’s demographic is pretty much the same as my demographic. People are shopping at Heinen’s not necessarily according to price, but for quality.”

Cocktails 101 The opening act was a palate refresher of strawberry sangria, concocted of dry white wine, strawberry syrup, strawberries and a couple other simple ingredients. Each of Dave Hridel’s subsequent trio of cocktails — a strawberry/rhubarb tequila Collins, a strawberry solstice and the new old-fashioned — delighted patrons, based on the myriad of depleted

CRAIN’S CLEVELAND BUSINESS

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CONTRIBUTED PHOTO

Cleveland chef Zack Bruell has produced a 17-ounce extra virgin olive oil that is served in all five of his restaurants and is available at all Northeast Ohio Heinen’s stores.

CONTRIBUTED PHOTO

Dave Hridel, the bar manager at Spice Kitchen + Bar, takes a do-it-yourself approach when teaching patrons how to make cocktails. beverage glasses. Strawberries, the brief in-season fruit, played a starring role. The June 23 farm-to-bar cocktail class at Spice Kitchen + Bar was the first of a four-part summer series at which Mr. Hridel, Spice’s bar manager, aims to educate attendees with his DIY approach to making cocktails. “We’re taking food from the earth that is at its peak freshness, and showing people why and what we’re doing is so delicious and unique,” Mr. Hridel said. “We want

to show people what it means to be farm to bar.” The first workshop on Spice’s patio drew about 30 guests, and Spice hopes to about double that attendance. Each class includes cocktail recipes and seasonal small plates. The next event, featuring blackberries, is July 21, followed by peaches on Aug. 25 and apples on Sept. 29. “I’m already starting to work on my blackberry cocktail recipes,” Mr. Hridel said. “I’m working on a lovely blackberry liqueur with various spices, thyme and alcohol that will show up in some format.” Classes are $40 per person excluding tax and gratuity. For more information, visit http://spicekitchenandbar.com. Spice Kitchen + Bar, 5800 Detroit Ave., Cleveland. 216-961-9637

Come together Some of Cleveland’s top culinary talent is converging for the inaugural Cleveland Chef’s Gala to benefit Autism Speaks. The Aug. 10 event will be held from 7 to 10:30 p.m. at Cuyahoga Community College’s Hospitality Management Center at Public Square. The event features Michael Symon, Jonathon Sawyer, Chris Hodgson, Rocco Whalen, Britt-Marie Culey and more. To purchase tickets, visit: tinyurl.com/n4gtysb. ■ Tri-C’s Hospitality Management Center, 180 Eucid Ave., Cleveland. 866-933-5181

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View: Group wants input on local priorities, values continued from PAGE 8

■ Taxpayers are burdened by the costs of fragmented local and regional governments. ■ Cultural and natural resources are under stress. ■ Rising infrastructure costs exceed our means to pay. ■ Land use patterns affect local and regional budgets. ■ Our overall economy needs to be stronger. We won’t have a thriving and successful region to leave to future generations unless we address these issues. (The “Business-as-Usual” presentation, along with a video developed to provide an overview of Vibrant NEO, can be viewed at http://vibrantneo.org. The workshops were just the first step of our effort to listen to this region’s priorities and values, assess whether our current actions reflect those priorities and values, and work with the people of Northeast Ohio to develop a vision and plan for a more vibrant, resilient and sustainable future. To hear from the largest number of residents possible, the Northeast Ohio Sustainable Communities Consortium NEOSCC has launched ImagineMyNEO (VibrantNEO.org/Imagine), an innovative online tool designed to engage residents around developing a vision for a more vibrant, resilient, sustainable region in the future. ImagineMyNEO puts the user in the role of regional planner, making critical policy decisions and weighing priorities for the future of Northeast Ohio and struggling with the tough choices that must be made. In ImagineMyNEO, the user is first asked to finish the sentence “I want to live in a Northeast Ohio where…” by rating the relative importance of 15 statements such as “…My community has an urban character” or “…My taxes are low” or “I can get to places without a car.” Next, the user learns about the ways that different policy choices can impact a variety of priorities, in positive and negative ways. Lastly, users are asked to “put your money where your ‘mouse’ is!” by allotting limited resources (in this case, 15 coins) to different projects, all of which have

The issues we are wrestling with are vitally important. They can sometimes seem technical or staid to a lay person. Knowing this, we designed ImagineMyNEO to make the issues of regional sustainability — and the tradeoffs and choices that we face — easy to understand and relevant. differing resource costs and differing impacts on priorities. Users can revise and rethink their choices to find the actions that most positively support their preferred priorities. The issues we are wrestling with are vitally important. They can sometimes seem technical or staid to a lay person. Knowing this, we designed ImagineMyNEO to make the issues of regional sustainability — and the trade-offs and choices that we face — easy to understand and relevant. Our goal with ImagineMyNEO is to ask residents “What would this region look like in the future if you were in charge?” Users can share their priorities for the future and make the kinds of policy choices necessary to help create that future. We hope you will play ImagineMyNEO and share what you want for this region’s future. You can also watch VibrantNEO.org for information about coming public open houses and workshops the Northeast Ohio Sustainable Communities Consortium will hold in July, August and September. The VibrantNEO 2040 Scenario Planning process offers Northeast Ohio a chance to set aside our competition over limited resources for a moment and focus our attention back where it needs to be — on how we can all work together to create new solutions for protecting and making the most of Northeast Ohio’s rich legacy of built and natural assets. Join us as we begin to work toward a shared vision for a more vibrant, resilient and sustainable Northeast Ohio. ■

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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

JULY 15 - 21, 2013

GOING PLACES JOB CHANGES ARCHITECTURE KA ARCHITECTURE: Rich Wilden to director of design; Brian Bernstein to senior landscape architect; Jim Clarke to senior project architect.

Bernstein

Wilden

Clarke

Guyre

FINANCE OHIO COMMERCE BANK: Lindsay L. Bierman to banking specialist.

FINANCIAL SERVICE JANNEY MONTGOMERY SCOTT: Michael Guyre to director and senior analyst, forensic accounting.

HEALTH CARE MILLERâ&#x20AC;&#x2122;S: Johnny P. Miller to president.

INSURANCE KAISER PERMANENTE OF OHIO: Josiah Sutton to senior director, sales and broker relations; Kathleen Stephens to senior director, account management and client services.

Stephens

Bast

MARKETING

SERVICE

Jody Kelly and Matt Chorba to service technicians, Cleveland.

INSIVIA TECHNOLOGY: Justin Wolford to chief marketing officer.

CROTHALL HEALTHCARE: Ted Hoffman to regional vice president, facilities management.

MEDIA

OECONNECTION: Katherine Golden to vice president, chief technology officer.

DAVEY TREE EXPERT CO.: Chris Bast to treasurer.

BABCOX MEDIA INC.: Dean Martin to publisher, Fleet Equipment.

NONPROFIT OHIO HOSPITAL ASSOCIATION: Jim Guliano to vice president, quality programs.

REAL ESTATE

LEGAL

COLLIERS INTERNATIONAL: David Ostoich to senior property manager; Heather Mohler to senior marketing specialist.

MCDONALD HOPKINS LLC: Adam C. Smith to associate.

TRANSACTION REALTY: Nathan Elkins to sales associate.

DIGITAL COLOR INTERNATIONAL: Jeffrey Weiss to chief operating officer. HUMAN ARC: Dan Greene and Tomara King to assistant team leaders, Best Benefits Service Line.

STAFFING DIRECT RECRUITERS INC. EXECUTIVE SEARCH: Chris Hesson to recruiting consultant, plastics team; Joel Jelinek to project coordinator.

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STREAMLINK SOFTWARE: Heather Maryo to project management director; Thomas Watson to sales manager.

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BOARDS CLEVELAND HEARING & SPEECH CENTER: David J. Abood (Accenture) to president; Douglas J. Hogan and Eutrace Oliver to vice presidents; Jean Sarlson to secretary; Mark A. Quarm to treasurer; G. Cleve Gilmore to immediate past president. CLEVELAND-MARSHALL LAW ALUMNI ASSOCIATION: Gregory S. Scott to president; James P. Sammon to president-elect; Kevin M. Butler to vice president; Gregory F. Clifford to secretary; Tim L. Collins to treasurer; Ian N. Friedman to immediate past president. INTERNATIONAL ASSOCIATION OF ADMINISTRATIVE PROFESSIONALS BLACK RIVER CHAPTER: Mary H. Szabados (Lorain County Community College) to president; Jane Wiesner to vice president; Lisa McClenny to recording secretary; Tina Nenzoski to treasurer. OHIO SOCIETY OF CPAS: Robert Zunich (Barnes Wendling CPAs Inc.)

Co-Presented by:

Kelly

AWARDS AMERICAN ADVERTISING FEDERATION CLEVELAND: Jack DeLeo (Hitchcock Fleming & Associates Inc.) inducted into the Hall of Fame. CLEVELAND-MARSHALL LAW ALUMNI ASSOCIATION: Timothy J. McGinty (Cuyahoga County) and Dennis R. Lansdowne (Spangenberg Shibley Liber) received Alumni of the Year Awards. LAKEWOOD HOSPITAL FOUNDATION: Carol Hall was named an Honorary Lifetime Trustee. OHIO HOSPITAL ASSOCIATION: John Corlett (MetroHealth) received the Leadership Through Advocacy Award. OHIO SOCIETY OF CPAS: John Bongorno (Cuyahoga Community College and Kaplan Trucking Co.) received the Outstanding Ohio Two-Year Accounting Educator Award.

Send information for Going Places to dhillyer@crain.com.

We want your input on Clevelandâ&#x20AC;&#x2122;s future The July 22 issue of Crainâ&#x20AC;&#x2122;s Cleveland Business will feature a special report, â&#x20AC;&#x153;CLE 2030: Facing the Future.â&#x20AC;? In this report, we will explore what must be done now to make Cleveland a better place to live, work and play for generations to come. Crainâ&#x20AC;&#x2122;s is posing discussion questions via its LinkedIn group prior to the sectionâ&#x20AC;&#x2122;s publication. Questions such as this one are sparking some lively discourse: â&#x20AC;&#x153;What does Cleveland still need to continue its growth? How can the city attract new residents? What can we be doing better?â&#x20AC;? Here is one recent response: â&#x20AC;&#x153;The biggest thing that is missing is a developed lakefront that has

residential and retail space. Big mistake was putting the stadium on the same site as the old one. Perfect place to put a hotel and/or office/residential building. Wasted opportunity for attracting convention business and new residents to downtown living. Hotel space is one item that has hurt us in our pursuit of convention business.â&#x20AC;? To read more and be part of the discussion, join Crainâ&#x20AC;&#x2122;s Cleveland Businessâ&#x20AC;&#x2122; LinkedIn group.

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WHAT THE LEGAL COMMUNITY IS SAYING GEORGE S. COAKLEY Partner Reminger Co. LPA ■ What types of attributes will be needed in tomorrow’s legal sector leaders? I think the same attributes that define the legal leaders today and in the past will inform future leaders: integrity, creative thinking, good listening, writing and verbal presentation skills, ability to maintain a balanced lifestyle, fair, considerate, consistent and good sense of humor. ■ What are some of the most significant challenges in the legal field going forward? One of the most significant challenges is how to integrate the rapidly developing technological advances into the basic mission of solving the client’s problem quickly and cost-effectively. Another continuing challenge will be attracting and retaining talent and dealing with the mounting debt accumulated by young lawyers from college and law school tuitions.

DONALD P. FISCHBACH

ortheast Ohio’s legal community is full of bright minds and interesting stories. In this section, we offer a cross section of just some of those who are making their mark in

KEVIN BROKAW Director of development/general counsel Geis Cos. t Geis Cos., the Streetsboro-based real estate developer and industrial contractor, Kevin Brokaw recently was promoted to development director but continues to fulfill the duties of his prior job as general counsel. Greg Geis, one of two brothers who own the concern, said the promotion reflects how Mr. Brokaw has grown in three years at the company and earned added responsibility. “He’s an integral part of the management team,” Mr. Geis said. The job playing the role of business adviser as well as legal counsel fulfills a lifelong goal for Mr. Brokaw, who said he always has sought to aid his clients’ business interests as well as look out for their legal and financial interests. Mr. Brokaw joined the company in 2009 as it began pursuing urban projects such as the MidTown Technology Park on Cleveland’s East Side. This year the firm launched the remaking of the former Ameritrust skyscraper and associated buildings in downtown Cleveland as an office, apartment and hotel project that incorporates construction of the new central headquarters for Cuyahoga County. Those projects dramatically heightened the family-owned concern’s profile and built on decades of experience creating suburban industrial parks and build-to-suit properties. At Geis, Mr. Brokaw assists the firm’s varied professionals, from those in architecture to construction, in every aspect of the development process, including site selection, closing, preparing financial estimates and getting the jobs going. He also works with the city, county and state

Northeast Ohio’s legal community and positioning themselves as leaders. We also ask others working within the field to weigh in on challenges facing the sector in the future.

governments that provide alternative financing that is crucial to urban development projects. Mr. Brokaw’s path to Geis, which led through working for other developers and two law firms, surfaced when he and Fred Geis, the other brother who owns the company, struck up an acquaintance at a conference both attended. Fred Geis thought Mr. Brokaw, at the time real estate director for the Akron Metropolitan Housing Authority, would be a good fit for the aggressive company. Jack Waldeck, chairman of the real estate unit at law firm Walter Haverfield, does work for Geis Cos. and sees Mr. Brokaw as perfect for the company, and that goes beyond the nuts and bolts of legal issues. “He has a high energy level,” Mr. Waldeck said. “The Geis brothers work at all hours, day and night, when deals are happening. He can respond and keep pace with (them).” Mr. Brokaw positioned himself for the type of job he is in now way back at the Cleveland-Marshall College of Law at Cleveland State University, where he completed its program combining a law degree and master’s degree in business administration. He said he went that route because his father, Glenn Brokaw, was general counsel for several Northeast Ohio real estate developers and practiced real estate law. The younger Mr. Brokaw grew up in Independence hearing law and real estate stories at home. Today he lives in Brecksville with his wife Sarah and their two children, ages 5 and 8, and is as engaged as possible in his children’s activities. “As a family-owned company, Geis is very supportive of that,” Mr. Brokaw said. “They encourage you to do well in their professional life and personal life.” — Stan Bullard

Partner Calfee, Halter & Griswold LLP ■ What types of attributes will be needed in tomorrow’s legal sector leaders? Nothing will replace competence, integrity and professionalism as the standards by which legal leaders are judged. In the future, leaders will be challenged increasingly to be creative and strategic thinkers for their clients and assist their clients to be more and more proactive. Attorneys flexible and able to deploy focused skill sets to matters, whether new or old, will be in demand. ■ What are some of the most significant challenges in the legal field going forward? With corporate and in-house counsel facing increasing pressure to hold down costs and proactively manage legal issues, and individuals able to access perceived information online, it becomes even more vital that attorneys are will-

ing to look outside traditional approaches to client collaboration. We must be creative, quick to respond and focused on making client service the most important priority. Law firms must offer clients a holistic approach, with multiple practice areas able to work together to quickly solve, minimize or head off a potential problem.

JOHN R. LIBER II Principal Thrasher, Dinsmore & Dolan ■ What types of attributes will be needed in tomorrow’s legal sector leaders? Flexibility, creativity and vision. As the legal profession evolves, I have seen that those who rise to the top are not only ambitious, but willing and able to break from the norm and come up with creative solutions for the complex issues that arise. After all, as attorneys we are the problem solvers for our clients’ legal challenges. Most of the time, the answer is not black or white. It often requires the individual professional to craft a solution that is not only accurate, but compatible with the clients’ current and ongoing needs. ■ What are some of the most significant challenges in the legal field going forward? Without question it is financial. At all levels the legal profession is experiencing the beginnings of an unprecedented financial challenge. In the public sector, as governments seek ways to solve their own budget problems, resources for legal programs, judicial salaries and funding for public attorney services are targeted. Financing for student loans for law schools has reached the crisis point. And in the private sector, the competition over fees and the contraction of law firms and private practices continues. The job market has shrunk, leaving many law school graduates unemployed with large student loan debt. This is why when asked by students contemplating a legal career, I often recommend they take a break between college and graduate school so they gain greater perspective and unique experiences to utilize in their career, and take the extra time and seek a dual degree to broaden their career opportunities.

INSIDE: More thoughts from local law leaders on the attributes needed in tomorrow’s leaders and the challenges they will face in the future. Page 17

2013 WHO TO WATCH IN LAW ■ Kevin Brokaw, director of development/general counsel, Geis Cos.; LEFT ■ Julie Chernitski, staff attorney, Medical Mutual; PAGE 16 ■ Marie B. Curry, managing attorney, Community Legal Aid Services Inc.; PAGE 12 ■ James P. Dougherty, administrative partner, Jones Day; PAGE 13 ■ Rocco I. Debitetto, partner, Hahn Loeser & Parks LLP; PAGE 15 ■ Bryan J. Farkas, partner, Vorys, Sater, Seymour and Pease LLP; PAGE 16 ■ Sarah C. Flannery, partner, Thompson Hine; PAGE 15 ■ Michael A. Jackson Jr., associate, Fisher & Phillips LLP; PAGE 14 ■ Aimee Lane, associate, Walter Haverfield LLP; PAGE 14 ■ Maria Limbert Markakis, partner, Day Ketterer Ltd.; PAGE 12 ■ Also inside: Check out photos from the Cleveland Metropolitan Bar Association’s annual meeting last month at Quicken Loans Arena; PAGE 18

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12 CRAIN’S CLEVELAND BUSINESS

MARIA LIMBERT MARKAKIS Partner Day Ketterer Ltd.

aria Limbert Markakis has dedicated the bulk of her career to public education. Her mother, Pamela, was a high school English teacher, and Mrs. Limbert Markakis has 13 years of experience in general education law and special education law. In late June, some of her hard work was rewarded when Gov. John Kasich signed legislation, drafted by Mrs. Limbert Markakis, that “expressly permits a science, technology, engineering and mathematics (STEM) school to contract for services necessary for the operation of the school.” According to Day Ketterer, prior STEM legislation “unintentionally restricted” STEM schools from contracting with teachers and administrators associated with other schools — making it difficult to hire the best faculty and staff. “She’s sort of on the cutting edge on what is happening in the education law arena throughout the state,” Robert Roland, managing partner at Day Ketterer, said of Mrs. Limbert Markakis. “She’s really been an amazing asset to our firm in ways that even we never really expected. She’s been recognized throughout the state as an expert in school law and the advancing boundaries of that law.” Mrs. Limbert Markakis was hired by Day Ketterer in 2012 as chair of the firm’s education law practice group. Prior to the appointment, she was a partner at Eastman & Smith Ltd. in Toledo. Mr. Roland admits he didn’t know much about school law prior to meeting Mrs. Limbert Markakis. The latter made a quick first

“She’s sort of on the cutting edge on what is happening in the education law arena throughout the state. She’s really been an amazing asset to our firm in ways that even we never really expected. She’s been recognized throughout the state as an expert in school law and the advancing boundaries of that law.” – Robert Roland managing partner, Day Ketterer Ltd., on Maria Limbert Markakis impression. “She’s a dynamo,” Mr. Roland said of Mrs. Limbert Markakis. “There is no question about that.” Indeed, the education law practice group at Day Ketterer began with the hiring of Mrs. Limbert Markakis. The group provides “innovative and cost-effective” legal services for school systems in Northeast Ohio, according to the firm. Mrs. Limbert Markakis serves as primary counsel to the Buckeye Legal Consortium, which was developed in conjunction with the Portage County Educational Service Center and provides legal counsel to participating school districts at a reduced cost. “I like the issues that public schools face on a daily basis,” Mrs. Limbert Markakis said. “A lot of the issues deal in the theory of constitutional law, and I see those issues as interesting.” Mrs. Limbert Markakis’ life outside her career is a hectic one as well. Her husband, George Markakis,

MARIE B. CURRY Managing attorney Community Legal Aid Services Inc.

H Maria Limbert Markakis drafted legislation for Day Ketterer Ltd. that will better allow science, technology, engineering and mathematics schools to hire the best staff. is an ophthalmologist at Cleveland Eye Care and Surgery, which has offices in Beachwood, Garfield Heights, Parma Heights and Willoughby. The couple has two children, ages 8 and 3, and Mrs. Limbert Markakis is a member of the Hudson City Schools’ parent teacher association. She also teaches one education law course a year at the University of Toledo. Prior to moving to Hudson, Mrs. Limbert Markakis taught a threecredit class at Toledo. Now, she teaches a one-credit course — 12 hours of instruction that is completed in one weekend — and says she will continue to help the university for “as long as they need me.” Mrs. Limbert Markakis also enjoys working out, when she finds the time. “It’s a big balancing act,” she said of her hectic schedule. “I have a lot of support at home. I also have a team of about 10 attorneys that assist with my school clients.” — Kevin Kleps

Oswald Centre – coming August 2013 Credit: Vocon

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JULY 15 - 21, 2013

ealth equity is a passion for Marie B. Curry, a managing attorney at Community Legal Aid Services Inc. “Issues of health equity are really critical,” Ms. Curry said. Ms. Curry, 48, oversees the Akron-based organization’s Medical-Legal Partnership project, which aims to address issues of social determinants to health, such as housing and access to education. The idea is that doctors only can do so much to affect patients’ overall health — there are outside factors, especially in low-income communities, physicians can’t control. The lawyers in the partnership can step in at that point, helping patients solve those social and legal problems. The importance of health policy is a thread that has run through Ms. Curry’s career. After graduating from the University of Rochester for her undergraduate degree, Ms. Curry went to Harvard University for law school. There, she was involved in an early version of a medical-legal partnership, where medical and law students worked together in a practice that primarily served senior citizens. She worked at the Legal Aid Bureau in Maryland early in her career and later worked as a health law associate in San Francisco before taking some time off with her two children. When her husband got a job at the University of Akron, the family moved to Northeast Ohio. She had been out of the field for more than a decade when she started consulting and researching for organizations such as the Sisters of Charity Foundation of Cleveland and Voices for Ohio’s Children. In 2009, Ms. Curry began volunteering with Community Legal Aid and, with the help of an Equal Justice Works fellowship, joined the staff in 2011. During that time, she

“To me, the issues of health equity are issues of conscience and issues of social justice.” – Marie B. Curry managing attorney,Community Legal Aid Services Inc. also earned her master’s of public health at Johns Hopkins University, designing a study to evaluate the impact of the Medical-Legal Partnership. That study is still underway. The Medical-Legal Partnership has two locations through Akron Children’s Hospital and Summa Health System. Through the partnership, Ms. Curry and others spend time on-site to help patients with issues related to housing, insurance and more. Ms. Curry has helped to establish a voice for low-income health care consumers in Northeast Ohio, a piece of the community conversation that used to be missing, said Community Legal Aid executive director Sara Strattan. The partnership has given the organization a way to think about how legal issues can affect health, and it created the foundation for important community health care conversations. “It built a bridge with the medical community,” she said. Ms. Curry also oversees parts of the organization’s family law efforts, which she said includes legal issues regarding domestic violence. Her fellowship ends in August, but she plans to stay with Community Legal Aid. She also is the chair of the joint policy advocacy committee for the Healthy Connections Network and the Minority Health Roundtable, both of Summit County. The committee focuses on widespread policy issues related to health in the community, Ms. Curry said, such as issues of infant mortality, gun-related legislation and implementation of the Affordable Care Act. “To me, the issues of health equity are issues of conscience and issues of social justice,” Ms. Curry said. — Rachel Abbey McCafferty

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JAMES P. DOUGHERTY Administrative partner Jones Day

ames P. Dougherty has advised on multimillion- and multibillion-dollar mergers and acquisitions for years. But it’s only since January that, at age 39, he’s serving his clients and leading his attorney peers as administrative partner of Jones Day’s M&A law practice, which has led all law firms in number of deals worldwide and in the United States for 13 consecutive years as ranked by Bloomberg and Thomson Reuters. A Jones Day attorney since 2004 and a partner since 2008, Mr. Dougherty now is guiding strategy, staffing and budgeting across the firm’s global M&A practice. The administrative partner role essentially makes him “co-head” alongside Bob Profusek, who leads the M&A practice, Jones Day’s largest in terms of headcount, said Chris Kelly, partner-in-charge of the Cleveland office. “Not only is he an excellent lawyer, he’s got … strong leadership characteristics,” Mr. Kelly said of Mr. Dougherty. “At a very young age, he’s a leader in the firm.” All the while, Mr. Dougherty continues to represent prominent clients such as the Weiss family in its proposed buyout of American Greetings Corp. Other recent clients include paint maker Sherwin-Williams Co., which Mr. Dougherty represented in its biggest deal yet — the $2.3 billion acquisition of Comex Group in Mexico late last year — and specialty chemical maker Ferro Corp., which was the target of an unsolicited takeover bid by A. Schulman Inc. until the Akron-based supplier of plastic resins rescinded its offer in recent weeks. Mr. Dougherty is on his way to becoming the type of M&A attorney who gets hired based on reputation and word of mouth, Mr. Kelly said. “You’ll see him work on more

GET DAILY NEWS ALERTS FROM CRAIN’S ! Register for free email alerts and receive: ■ The Morning Roundup: The day’s business news from Ohio’s daily papers ■ Breaking news alerts ■ Daily headlines: News and blog items from the day ■ Dealmaker alert: A weekly guide on M&A trends and recent transactions in Ohio. Published Wednesday. ■ Real Estate Report: A weekly guide to real estate news. Published Monday. ■ Small Business Report: A weekly guide to small business news. Published Thursday. ■ Shale and Energy Report: A weekly guide to the energy industry. Published Friday. ■ Work Force Report: A weekly guide to help companies attract and retain the best talent. Published Tuesday.

CRAIN’S CLEVELAND BUSINESS 13

shareholder activism and other governance-related activity to increase in countries such as Japan, and as they do, Jones Day is “very well positioned to bring to bear for other countries our experience in the U.S,” he said. “The differentiator is the team that I’ve got,” Mr. Dougherty said. “The partners and associates I work with are just outstanding. No one in a law firm as large as this can truly be successful without a great team.” Mr. Dougherty lives in Shaker Heights with his wife, Janelle, and their three children: Connor, 7, Aidan, 5, and Blake, 1. After playing an “absolutely pathetic” two times last year, he’s trying to golf more in his spare time. He also is a trustee for the Cleveland Leadership Center. — Michelle Park

transactions outside of Northeast Ohio,” he predicted. Mr. Dougherty was attracted to corporate work early on, in large part because of the pace: “It seems like there’s something new almost weekly. It’s never really the same thing, day in and day out.” He seized the opportunity to help lead the M&A practice because it’s “an honor” and a welcome challenge, he said. “You get a lot more visibility to your partners, and you have a lot more say in terms of budgeting and strategy,” he said. “It’s a big job. “We’re in so many places with so many good clients, the challenge is coordinating that, making sure that you’re not missing opportunities,” Mr. Dougherty noted. Over the near term, he expects

James P. Dougherty, 39, has been an attorney with Jones Day since 2004 and a partner since 2008.

My Benesch My Team

“BENESCH gave us the freedom and support to

build our careers the way we wanted.” “Benesch appreciates and recognizes individual initiative. If you’ve got the drive and desire, we want your ideas and involvement. It’s how we keep the firm fresh and on the cutting edge. This is not the kind of place where you’re going to sit in your office and do research and crank out memos. You’re going to be meeting people, developing relationships and helping to grow the firm and your own practice.”

MEGAN L. MEHALKO Partner and Chair, Corporate & Securities Practice Group, Member, Executive Committee Cleveland Office mmehalko@beneschlaw.com Lateral hire in 2000

“I was a first-year associate when

I came to Benesch, and now I lead a department. When you first start out, you need the support of people who are interested in your success, and that’s what I had here. I had a lot of great mentors—attorneys who took time to work with me and help me. There are a lot of opportunities to take advantage of the firm’s resources—the biggest and best of which are the people.”

JULIE PRICE Partner and Vice Chair, Private Equity Practice Group. Chair, General Practice Group Cleveland Office jprice@beneschlaw.com Lateral hire in 2000

Want to be part of the Benesch team? Contact JEANNE HAMMERSTROM, Chief Marketing/Recruiting Officer, at (216) 363-4180 or jhammerstrom@beneschlaw.com, or download Benesch’s recruiting app, Apportunity,® from the iTunes store (keyword: Benesch). Cleveland s Columbus s Indianapolis s Philadelphia s Shanghai s White Plains s Wilmington s www.beneschlaw.com

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JULY 15 - 21, 2013

MICHAEL A. JACKSON JR.

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ichael A. Jackson Jr. tries to see the humanity in labor and employment law. “I really try to get down and view what’s at stake for both sides,” said Fisher & Phillips LLP associate Mr. Jackson. These cases can be highly sensitive with big consequences for large companies, or encompass emotional and powerful issues that can set up to be the worst experience of a lifetime for an individual, he said. Mr. Jackson is just four years out of Ohio State University’s Mortiz College of Law. He stayed in Columbus for about a year and a half with Porter Wright Morris & Arthur before coming to Cleveland to work with Fisher & Phillips. Mr. Jackson boasts an extraordinarily active practice in comparison to many of his peers with the same level of experience, according to Bob Dezort, a partner at Fisher & Phillips. Mr. Jackson has represented clients in front of a number of administrative agencies, including the Department of Labor, Veterans Employment and Training Service, Equal Employment Opportunity Commission, National Labor Relations Board, Occupational Safety and Health Administration, and the Tennessee, Indiana, Michigan and Ohio civil rights commissions. “He is a guy I’ve come to rely on, trying to make my job easier as partner,” Mr. Dezort said. Clients

AIMEE LANE Associate Walter Haverfield LLP

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t was during her senior year at Brecksville-Broadview Heights High School that Aimee Lane got interested in government. Now an associate in the municipal and public law practice group at Walter Haverfield LLP in Cleveland, Ms. Lane delved deeper into the realm of politics at Marietta College, where she earned a bachelor of arts degree in history and political science. “At first I was interested in the inner workings of government,” she said. “Then in college I became interested in how other countries operate.” Now, after nearly nine years at Walter Haverfield, she is assistant law director for Moreland Hills and assistant solicitor for Hudson. It’s common practice for suburban communities to hire a municipal law attorney in private practice instead of a full-time law director or solicitor. For those communities she handles everything from nuisance abatement to election issues to defending police officers against charges of false arrest and excessive force. Her specialty may become land use and zoning, an interest she had even before she graduated from law school. After her second year, she clerked for Janet R. Beck in Brecksville, who had a general practice but who also served part time as a city law director. “From Day One of my legal experience I found it so interest-

are so impressed with Mr. Jackson’s knowledge and skill in the field, they now contact him directly, something uncommon for an associate so young, he said. “He is an excellent writer and a good communicator,” Mr. Dezort said. “Clients understand what they are getting, not just legalese.” Mr. Jackson gives practical advice written in a business way clients gravitate toward, he said. Mr. Jackson places importance on maintaining good relationships not only with his clients but also with everyone he meets through his practice by remaining respectful and professional. “I try to maintain good relationships with counsel on both sides of the coin,” he said. Mr. Jackson shares his realworld knowledge of practicing law with minority groups at law schools — Ohio State’s in particular — through mentoring. He said he tries to instill in students a sense of the realities of practicing law as opposed to what is taught in law schools, such as working with difficult people, networking, expanding branding and making a name for themselves. “Law students struggle with developing expertise and a skill set in some particular area,” Mr. Jackson said. Mr. Jackson also takes advantage of the opportunity to mentor through Big Brothers Big Sisters. In addition, he is involved in The American Constitution Society and The Cleveland Employment Inns of Court. — Laura Straub ing,” she said. “There are even engineering aspects; I was so stunned by (the utility and water lines) that are underground.” Ms. Lane sees becoming a community’s law director as the next step in her career. At the firm, though, she’s also valued for her expertise in several other areas. “She’s really an expert in public records and sunshine law issues,” said R. Todd Hunt, section head of Walter Haverfield’s public law practice. “Her demeanor is just excellent so she’s able to work with a lot of public officials, and that’s not easy.” Sunshine laws are state laws that direct government meetings and records to be open to the public with only limited exceptions. It’s typically the municipal lawyers who must keep the public officials mindful of the law’s presumption of openness. “She’s also developed an expertise in storm water law,” Mr. Hunt said. Ms. Lane has represented several communities who joined with other cities in the region in a long-running legal dispute with the Northeast Ohio Regional Sewer District. The sewer district began charging property owners a new fee to help the district address problems created by the storm water that runs off hard surfaces such as parking lots and can overload sewers. That work was a change of pace from authoring legislation and researching requests for zoning changes. “It was exciting for me because I didn’t get into court a lot,” Ms. Lane said. — Jay Miller

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ROCCO I. DEBITETTO

SARAH C. FLANNERY

Partner Hahn Loeser & Parks LLP

Partner Thompson Hine

hen Rocco I. Debitetto looks back over his career, he wants to make sure he left things in a better state than he found them. As a partner specializing in creditorsâ&#x20AC;&#x2122; rights, business bankruptcy and reorganization at Hahn Loeser & Parks LLPâ&#x20AC;&#x2122;s Cleveland office, Mr. Debitetto, 36, is well on his way. He has worked on some highprofile cases, such as Cardinal Fastenerâ&#x20AC;&#x2122;s bankruptcy case. He helped the once-lauded Bedford Heights manufacturer stay afloat and save jobs after the wind energy sector took a hit. He sees the best and worst of people in his daily work, he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a dark, dark world in which I play,â&#x20AC;? Mr. Debitetto said. But the field also offers him the opportunity to help people in more ways than just financially. In an ideal case, he gets to help his clients achieve some peace and stability, guiding them through a difficult time in their business. And any case in which he can help employers save employeesâ&#x20AC;&#x2122; jobs is a good one, he said. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s rewarding,â&#x20AC;? he said. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s fantastic.â&#x20AC;? Mr. Debitetto started practicing bankruptcy law at the suggestion of a college professor, who said it was a good field for lawyers who werenâ&#x20AC;&#x2122;t sure what they wanted to specialize in yet: That area of law covers everything from tax law to litigation to intellectual property disputes. But the variety is just what appealed to Mr. Debitetto. (His decision to go into law at all came much earlier â&#x20AC;&#x201D; after hearing a middle school-age Mr. Debitetto and his friend arguing on a car ride, his father told them they should both become lawyers. They did. â&#x20AC;&#x153;I remember that moment like it was yesterday,â&#x20AC;? Mr. Debitetto said.) Mr. Debitetto also finds satisfaction in his role as the firmâ&#x20AC;&#x2122;s legal personnel relations partner, a three-year term that he began at the start of 2013. He views it as a way to leave a legacy at the firm by finding and developing talent among the team. He enjoys serving as a mentor to the younger lawyers, and itâ&#x20AC;&#x2122;s a role that Larry Oscar, CEO and managing partner,

CONTRIBUTED PHOTO

Rocco I. Debitetto has worked on some high-profile cases as a partner specializing in creditorsâ&#x20AC;&#x2122; rights, business bankruptcy and reorganization at Hahn Loeser & Parks LLP. said fits him well. Mr. Oscar said Mr. Debitetto has a relaxed, easygoing personality and treats everyone with respect. That translates well to clients and to his peers, Mr. Oscar said, especially the younger attorneys. He also has an â&#x20AC;&#x153;uncannyâ&#x20AC;? ability to anticipate his clientsâ&#x20AC;&#x2122; needs, he said. When not at Hahn Loeser, Mr. Debitetto volunteers on the board of the Ohio Youth Rugby Association, trying to promote a sport he has loved â&#x20AC;&#x201D; and played â&#x20AC;&#x201D; since he was a teenager. He also enjoys spending time with his family: his wife, Biljana, and their two children, Gianna, 4, and Nicholas, 2. The family lives in Hinckley, but one of the childrenâ&#x20AC;&#x2122;s favorite spots is the Cleveland Museum of Natural History, Mr. Debitetto said. He is a big fan of Cleveland, calling himself a â&#x20AC;&#x153;true transplant,â&#x20AC;? and saying he thinks the city has a lot to offer. And he would know â&#x20AC;&#x201D; after growing up in the Columbus area, Mr. Debitetto went to undergraduate school at the University of Dayton and law school at the University of Cincinnati. He took a job with Hahn Loeser right out of school and has spent his whole career in Cleveland. â&#x20AC;&#x153;I just really fit with the firm,â&#x20AC;? he said. â&#x20AC;&#x201D; Rachel Abbey McCafferty

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS 15

arah C. Flannery jokes that she had to go to law school in order to get a job. Ms. Flannery attended John Carroll University as an undergrad with the intention of studying physical therapy, but an interest in required philosophy classes changed her direction. However, jobs requiring the obscure combination of majors in biology and philosophy were not in high demand, so Ms. Flannery instead attended Cleveland-Marshall College of Law at Cleveland State University, where she finished first in her class. â&#x20AC;&#x153;Law school is a test of your endurance, not a test of your intelligence,â&#x20AC;? Ms. Flannery said. Ms. Flannery was put up for consideration for partner at Thompson Hine at the earliest possible date, even after two maternity leaves and a third child on the way. Thompson Hine does an amazing job of working with female attorneys, to help them have both a career and family, she said. Jim Aronoff, partner in charge at Thompson Hine, is quick to extol her virtues. â&#x20AC;&#x153;The thing about Sarah is her

CONTRIBUTED PHOTO

Sarah C. Flannery finished first in her class at Cleveland-Marshall College of Law. approach to everything she does is from the viewpoint of being a leader,â&#x20AC;? Mr. Aronoff said. He said Ms. Flannery â&#x20AC;&#x153;can be tough, and zealously represents the interests of our clients.â&#x20AC;? Ms. Flannery has concentrated on developing the practice of immigration law. She enabled the practice to grow by introducing project assistants to aid with the lengthy administrative tasks involved with immigration casework. She excels at project management and alternative legal fee arrangement, Mr. Aronoff said. Ms. Flannery stumbled into immigration law as a first-year asso-

ciate at Thompson Hine. A partner needed help with immigration work, which was a smaller piece of his practice, and Ms. Flannery assisted. â&#x20AC;&#x153;I developed a passion for it,â&#x20AC;? Ms. Flannery said. Thanks to Ms. Flanneryâ&#x20AC;&#x2122;s passion, Thompson Hine is a leader in regional immigration cases and one of the few true national immigration practices, Mr. Aronoff said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a very, very rewarding area of law to practice in,â&#x20AC;? Ms. Flannery said. Besides embracing immigration issues, Ms. Flannery also has dedicated herself to the advancement of professional women. Ms. Flannery serves as the Cleveland office chair for Thompson Hineâ&#x20AC;&#x2122;s Womenâ&#x20AC;&#x2122;s Initiative, known as Spotlight on Women, leads the Womenâ&#x20AC;&#x2122;s Leadership Council of United Way of Summit County and received the YWCA Greater Cleveland Women of Professional Excellence Award in 2009. Mr. Aronoff said itâ&#x20AC;&#x2122;s impressive that she is dedicated to educating future leaders, because she is such a young leader herself. Ms. Flannery also serves on the boards of the Cleveland State University Alumni Association and the Ronald McDonald House of Akron. â&#x20AC;&#x201D; Laura Straub

FOR US, ITâ&#x20AC;&#x2122;S ALL ABOUT BREAKING NEW GROUND. At Vorys, weâ&#x20AC;&#x2122;ve been working with oil and gas producers and operators since the early 1960s. So when something new comes along, whether itâ&#x20AC;&#x2122;s new technology or new changes in the regulatory system, we have history and experience on our side. The oil and gas business works differently here in Ohio than it does in other places, and weâ&#x20AC;&#x2122;ve been actively involved in the development of the statutes, rules and regulations that guide Ohioâ&#x20AC;&#x2122;s industry. So whatever it takes to break new ground is nothing new to us.

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JULIE CHERNITSKI Staff attorney Medical Mutual

Congratulations

Michael A. Jackson For Being Included in Crain’s Cleveland Business Who to Watch in Law 2013

Michael A. Jackson mjackson@laborlawyers.com 9150 South Hills Boulevard Suite 300 Cleveland, OH 44147 Phone: (440) 838-8800

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ith the Affordable Care Act in full swing, it has been a busy year for health care attorneys, especially those working for Medical Mutual of Ohio — the local health insurance juggernaut. And for Julie Chernitski, a Medical Mutual staff attorney, that’s half the fun. As she characterized it, she has a “front-row seat” for the rapidly evolving health care field, and she wouldn’t have it any other way. “I wanted to pursue a career in an area where there’s always an opportunity to learn, and health care, in my mind, will always be an important global issue,” Ms. Chernitski said. Since arriving at Medical Mutual in June 2010, Ms. Chernitski, 29, has worked on a variety of legal issues for the insurance giant. Most notably, however, she has served as the point person for Medical Mutual in administering the Ohio High Risk Pool, which offers uninsured Ohio residents with pre-existing medical conditions affordable health care coverage. Ms. Chernitski regularly interacts with the Ohio Department of Insurance in Columbus and the U.S. Department of Health and Human Services in Washington,

BRYAN FARKAS Partner Vorys, Sater, Seymour and Pease LLP

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During his freshman year in high school, one of Bryan Farkas’ teachers told him to predict what his future profession would be on a postcard, which was to be mailed to him years later. He didn’t know what he wanted to do for a living, but he took a guess: He’d be a lawyer. And he was right. Mr. Farkas, who never ended up getting the postcard, is now a partner at Vorys, Sater, Seymour and Pease LLP. He chose the right profession. Mr. Farkas was never big on math and science, but he loves helping other people sort through intellectual problems — something he gets to do on a daily basis at Vorys’ Cleveland office. “With the strengths that I had, law made all the sense in the world,” he said. Mr. Farkas has spent much of the past five years tackling some particularly large intellectual problems. Though he works with all types of businesses, after the housing bubble burst he started to specialize in helping Vorys’ banking clients cope with a growing pile of loans gone bad. Soon he was working for several area banks as lead counsel on their distressed loans. That role gave him a chance to help those banks through tough times and cement their status as Vorys clients. “A lot of it was timing,” he said. “I saw an opportunity and tried to seize it.” He also works with a lot of startup companies, especially those with Israeli connections. After graduating from the University of California, San Diego, with a political science degree in 1994, Mr. Farkas spent two years in Israel, where he completed a postgraduate program studying Jewish

D.C., to navigate the complex regulatory and legal issues associated with the program. She also has been an instrumental player in the transition of the program’s administrative duties from Medical Mutual to the feds. “Health insurance and access to health care is something I used to take for granted because I’ve always had it,” she said. “This program made health insurance available to thousands of Ohioans who wouldn’t be able to purchase it otherwise. It’s been eye opening to hear their stories.” Mr. Chernitski is only a few short years out of law school, as she earned her J.D. from Ohio State University in 2009. It’s also fairly unusual to pluck someone right out of law school for a corporate legal department, according to Pat Dugan, Medical Mutual’s chief legal officer and executive vice president. However, Mr. Dugan said Ms. Chernitski has been able to handle each task thrown her way with an incredible amount of maturity, poise and thoughtfulness. “With the explosion, and I mean absolute explosion of the issues that health care reform has put out there, someone with her sort of expertise and capability is going to go a long way,” Mr. Dugan said. “We’re going to do everything we can to try to keep her here.” — Timothy Magaw

philosophy and Talmudic law at the Heiden Torah Institute. In the process, he learned a lot about Israel and met several entrepreneurs and doctors — which made him a prime candidate to help Vorys start its Israeli practice in 2012. The practice helps Israeli companies, typically in the biomedical industry, expand into the United States. Mr. Farkas leaves the science-related intellectual property work to his colleagues. He focuses on helping the companies with contracts, tax issues and other legal concerns. But sometimes the assistance he provides isn’t related to the law. Mr. Farkas said he works hard to understand his clients’ problems and does what he can to help solve them — or put the client in touch with someone who can. “You have to understand your client’s business before you can help them solve any problem,” he said. Vorys clients are always soliciting Mr. Farkas’ advice on all sorts of business issues, according to Tony O’Malley, managing partner for Vorys’ Cleveland office. And he’ll do whatever he can to help them, day or night, Mr. O’Malley said. “He is as singularly service-focused … as any lawyer I’ve ever met,” he said. Mr. Farkas — who is treasurer at B’Nei Torah, an Orthodox Jewish congregation in Beachwood — is particularly passionate about the region’s Jewish community, which is teeming with professionals who are quick to lend a hand whenever they can. Though Mr. Farkas grew up in San Diego, he moved to Northeast Ohio to study law at Case Western Reserve University. Now he feels right at home in University Heights, where he and his wife, Kim, have three children: Shoshana, 13, Jacob, 11, and Eliana, 8. — Chuck Soder

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WHAT THE LEGAL COMMUNITY IS SAYING APRIL MILLER BOISE Vice president, general counsel Veyance Technologies Inc. ■ What types of attributes will be needed in tomorrow’s legal sector leaders? Tomorrow’s general counsel need to have business acumen, sophistication and extremely strong interpersonal skills and emotional intelligence. It is not enough to be an excellent lawyer. You must have an excellent rapport with your internal clients and be able to anticipate the risks and challenges around the bend. Companies pick GCs for their ability to provide judgment and wisdom as evidenced by years of experience coupled with an intimate knowledge of the business and industry. My role as a GC is completely different from the role I had when I was at Thompson Hine as the office managing partner and a member of the executive committee. The business structures of the two organizations are so very different. I went from managing the Cleveland office, setting firm strategy and basically being my own boss to answering to a CEO and a board of directors as a GC. As a law firm partner, I was a hired gun. Clients hired me for technical legal expertise. I had to be 10 miles deep in M&A tactics. The role of GC has changed significantly in the last 10 to 15 years. Boards, CEOs and executive leadership teams look to the GC for sound judgment and reason. The GC doesn’t have the luxury of simply being an expert in one chosen area of law. By necessity, we are generalists; we are 10 miles wide and an inch deep. We have an opinion on everything. I need to be able to help my “client” find legal solutions to achieve the company’s goals. Increasingly, we are important members of the executive leadership team and a partner for the business. We have to have enough conviction to say no when it’s appropriate and we have to be able to sell this view to the leadership team or the board. The GC cannot

be the technical expert on every legal issue. Instead, I must understand our business, our strategic initiatives and our risk tolerance. This is becoming increasing important for GCs. ■ What are some of the most significant challenges in the legal field going forward? Economic uncertainty, corporate governance and compliance are perhaps the most significant issues facing general counsel right now. For international companies, especially, doing business around the globe in a number of developed and emerging economies, the rules of engagement are constantly changing. Companies are pushing to grow in new geographies while encountering significant market and regulatory uncertainty. Examples include recent labor law changes in Mexico and China and unrest in South Africa, Turkey and Egypt. On the governance side, new rules promulgated by the SEC and related shareholder activism for say-on-pay, proxy access, board diversity and leadership structure, and political contributions and lobbying keep GCs busy. The legal function and the general counsel in particular need to ensure that it stays abreast of these regulatory and legal developments. Social media is actually a very effective resource for this. Coupled with all of these legal changes, American-based companies especially are under significant pressure to be more “productive” and efficient in order to compete with lower-cost competitors in China, Brazil and beyond. For many, this translates into reducing the company’s total costs to produce one unit of output or widget each year. As a result, companies are under pressure to squeeze more costs out of every function, including legal. In short, we have significantly more regulatory requirements, but shrinking global budgets. This requires us to have excellent internal resources and strong mutually beneficial relationships with a small number of law firms. In addition, as the size of in-house departments grow, we need to be skilled at talent management and staff development.

Leading large numbers of lawyers in the process of adapting to evolving client needs — for example, quality interactive communication, the use of technology, transparency and outcome and budget predictability — will be absolutely key. Leading lawyers through the type of evolution that is inevitably confronting our profession means that a leader must have the emotional intelligence to connect with, manage and motivate lawyers to move out of their comfort zones to embrace the change. There is no substitute for universally acknowledged personal integrity in providing such leadership.

FREDERICK R. NANCE Regional managing partner Squire Sanders ■ What types of attributes will be needed in tomorrow’s legal sector leaders? In sum, vision, flexibility, emotional intelligence and integrity will be critical characteristics for law firm and legal department leaders going forward. Like most other sectors of our economy, the pace of change for the business of law continues at an accelerated pace. Having the vision to understand how clients determine the value proposition for legal services and then the flexibility to implement change accordingly are critical traits. Historically, the practice of law has been largely based upon precedent and tradition. While that will continue with respect to many parts of the substantive application of the law, the successful business practice of law has almost no use for tradition.

sition from the client’s perspective and being able to drive responsive behaviors within one’s firm or legal department will be critically important leadership skills. As the world gets to be a smaller place, the geographic reach of one’s practice will become increasingly important. Much of the business world now operates on a cross-border basis. The leadership ability to either grow one’s firm or department to establish international capabilities, or the ability to identify effective consulting/affiliation arrangements will again be very important to providing full-service needs. Finally, successful legal practice leadership on a going-forward basis will require the ability to identify young lawyers willing to dedicate themselves to a successful career inside of your organization. Given the amount of job mobility, diminished long-term loyalty and different value systems that many young people bring to the practice of law today, a successful leader of a law firm or legal department will need to know how to select, nurture and inculcate their organization’s culture and values into talented young lawyers.

■ What are some of the most significant challenges in the legal field going forward? Succinctly put, keeping pace with the rapidly changing business of the practice of law represents a sea change from the profession most of us joined. Clients have become much more sophisticated purchasers of legal services and are highly selective, particularly in the type of high stakes matters that most lawyers enjoy. Understanding the value propo-

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Event attendees and members of the Cleveland Metropolitan Bar Association interact — and get festive — during the group’s annual meeting on June 28 at Quicken Loans Arena. Among the guests was the Cavaliers’ mascot, Moondog.

Cleveland Metropolitan Bar Association president Jonathan Leiken performs during the group’s annual meeting on June 28 at Quicken Loans Arena. CONTRIBUTED PHOTOS

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Saluting a Leader in Public Sector Law

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Sarah C. Flannery is making her mark in the Northeast Ohio legal community as a leader in immigration law.

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CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

Early: Some fans question prices; MLB says Indians’ are lowest continued from PAGE 3

The days of relying on walk-up purchases at the box office on game day have gone the way of the $9 bleacher seat. Instead, dynamic pricing — where the price of a game varies depending on such factors as when the ticket is bought, the opponent, the day of the week and the month in which the game takes place — is becoming the norm in professional sports, and is in its second season with the Tribe. It’s a pricing model that has been employed for decades by the airline industry. For the Indians, dynamic pricing has coincided this season with a “buy early and save” marketing campaign that promotes the benefits of purchasing tickets weeks in advance. The price difference between buying early and late can be significant for popular dates. For example, bleacher seats for the Saturday, July 27, game against the Texas Rangers — which also features post-game fireworks and a giveaway of a Michael Brantley replica home jersey — were selling last week at prices ranging from $30.25 to $36 apiece. Those bleacher seats sold in a range of $10 (tickets for the upper bleachers, which are sold out for the Texas game) to $26 each (tickets for the lower bleachers, which are dynamically priced) at the start of the season. Indians president Mark Shapiro said dynamic pricing, “when you look at it on a macro level, is nothing new.” “When you go to the grocery store and buy a loaf of bread, do you even remember what you paid for the bread the last time you were there?” Mr. Shapiro said. “When you go to the gas pump and buy gas, it changes every day. “The sports and entertainment world is moving to a model that the rest of our commercial markets operate under,” Mr. Shapiro continued. “It was the biggest lever that we had not yet pulled.” But it isn’t the only lever the Tribe is using as it looks to boost revenues from ticket sales.

DIAMOND IMAGES

Fans are accustomed to buying tickets in advance for the Cleveland Indians’ always-sold-out home opener, but the team is trying to convince its faithful to do so for as many games as possible. This season, the Indians only are opening certain upper reserve sections of Progressive Field as demand dictates, thus concentrating smaller crowds in the higher-priced seats of the ballpark’s lower levels. And even when those upper reserve seats do become available, they no longer are sold for a single-digit price. Curtis Danburg, the Tribe’s senior director of communications, acknowledges the change isn’t welcome by some patrons. “People are used to walking up and asking for the cheapest tickets,” Mr. Danburg said. “They’re shocked to see the upper reserve section is $21 because it used to be $9. Part of our education (of fans) is it’s abnormal that the price was $9 in the first place. All of our peers are charging $24 and $27.”

Numbers game The Indians’ new model has produced a change — albeit a modest one — in ticket buyers’ behavior to

this point. The Tribe’s attendance remains among the worst in baseball — the Indians’ per-game average of 18,923 as of last Friday, July 12, ranked 27th among the 30 teams in Major League Baseball — but purchases made in advance are up. As of late June, the Indians’ single-game advance sales had increased 7% compared to the same point in 2012, while walk-up sales were down 6%. The advance-sale push hasn’t been made without some pushback from a fan base that still seems slow to buy into the team, even after an offseason in which the Indians spent $117 million in free agency to acquire players such as Nick Swisher and Michael Bourn. “You always have a few vocal fans,” Mr. Shapiro said. “The biggest shift we’ve had is the few fans who are used to the $8 or $9 tickets. The response we have is there are still $10 tickets. But for

those tickets, you have to get online and buy them in advance. “Instead of apologizing for that, we’re telling them it is us running our business more effectively,” Mr. Shapiro continued. He said the reality of the $8 and $9 seats of the past “is it creates a big gap in ticket revenue, and we’re really trying to get our ticket revenue back in line — not with the largest markets, but markets that are similar to us.” The available data indicate the Indians have some catching up to do in that regard.

How low can you go? According to research done by Major League Baseball, the Indians’ season-ticket prices are the lowest in the majors, and their seasonticket costs prior to this season were 36% below teams in comparable markets such as Kansas City, Pittsburgh and Milwaukee. Season tickets, on average, cost 40% less than comparable single-game pur-

chases for the Tribe’s 81 dates at Progressive Field — the incentive, of course, being that the early bird gets the best seat at the cheapest price. In the Team Marketing Report released annually by Fan Cost Experience (www.fancostexperience.com), the Indians’ average ticket price of $19.59 in 2013 is the fifth-cheapest in baseball, and the Tribe’s 4.1% decrease in average ticket cost from 2012 to 2013 was the fourth-largest drop in the majors. Likewise, the Tribe’s Fan Cost Index — the combined cost of four average adult tickets, two small draft beers, four small soft drinks, four hot dogs, parking, two programs and a pair of the cheapest adult adjustable caps — fell 9.1% in 2013 from 2012, which was the biggest decline in baseball, according to the Team Marketing Report. TicketCity ranked the Indians fifth in a recent study in which the Texas-based ticket reseller analyzed Major League Baseball teams that provide fans the biggest “bang for your buck.” The rankings were based on the median price on the resale market, winning percentages and the records of opponents during the games that have been played. “When we sat down, we wanted to figure out if I’m a fan, what provides value to me?” said Meredith Owen, TicketCity’s director of communications. “I want to see my team win, and I want to see them beat great opponents.” Mr. Shapiro said he believes by turning last-minute sales into online purchases made weeks in advance, the Indians can serve their fans better, in part by better allocating the team’s concession, security and cleaning staffs. “No business is meant to be able to handle 5,000 people walking up and getting a ticket at the last minute,” Mr. Shapiro said. “That creates confusion, and that isn’t good for our fans. Even if it’s just buying earlier in the day, those are the behaviors we are trying to incent.” ■

Woes: Former Myers interim president is critical of direction continued from PAGE 3

challenges of recruiting students,” Mr. Daugherty said. “I don’t know if anybody would buy car insurance from an underwriter that might be going out of business. The idea of trying to recruit a student to a university that might be losing accreditation is the same challenge.” The writing, in a sense, had been on the wall since at least 2010, when the university’s regulator, the Higher Learning Commission, put Chancellor on “show cause” and threatened to yank its accreditation. Losing accreditation would have been a crippling blow to the school, because its students no longer would be eligible for federal financial aid. In March 2011, the Higher Learning Commission lifted its showcause status, but the accrediting body slammed Chancellor the following summer with another show-cause order criticizing the school’s operations. Chancellor ultimately chose to sever its ties with the commission last fall and said it would seek another accrediting body, though it appears the school

was unable to find one. Instead, the university said it had arranged for its students to transfer to Alliant International University, a private, not-for-profit school in California. “We had been pursuing other alternatives (to the Higher Learning Commission), but with the time and effort required to do that, it seemed like a better approach would be for the university to partner with another school with a clean accreditation,” Mr. Daugherty said. Ultimately, Mr. Daugherty said, Chancellor’s investors “lost all their dough.”

An ill-fated investment? Kevin Kinser, an academic who studies for-profit universities at the University at Albany-State Universities of New York, said the group of investors — led by the well-known for-profit education entrepreneur, Michael Clifford — that swooped in to buy Myers University in 2008 and convert the struggling nonprofit business school into an online for-profit university made an ill-timed investment. The econo-

my, for one, was on the brink of a recession and the online education space already had a number of big participants. “The investment (Mr. Clifford) coordinated to basically rescue the institution was a lifeline for it,” Dr. Kinser said. “Perhaps it should have been able to die of natural causes at the time it was really struggling.” At the time, however, Chancellor had a heavy hitter as its chief spokesman — the colorful former General Electric Co. CEO Jack Welch, who said he would use Chancellor to launch his online MBA program. In 2011, however, Strayer University, a Virginia-based giant in for-profit education, scooped up the program for $7 million at the urging of Mr. Welch, who wanted a larger platform for his online enterprise. Mr. Daugherty said Chancellor and its investors didn’t see the full $7 million from that sale, though he wouldn’t get into the specifics, citing a nondisclosure agreement. A spokeswoman for Strayer also declined to elaborate on the sale. Still,

Mr. Daugherty insisted the remaining balance was reinvested in Chancellor’s faculty and curriculum and not pocketed by the school’s investors. When asked whether the loss of Jack Welch’s program was a death knell for Chancellor, Mr. Daugherty said, “That’s like asking if Napoleon had a B-2 (bomber) at Waterloo, what would have happened?” “That’s speculation,” he added. “I honestly don’t know.” When contacted by e-mail by Crain’s for comment on Chancellor’s closure, Mr. Clifford said in a brief message that the news was “sad” and “unfair.” Mr. Clifford did not respond to an e-mail asking him to elaborate on his comment or about his last involvement with Chancellor’s operations.

Muddled vision When Chancellor lost Jack Welch, Mr. Daugherty insisted Chancellor would be known for its academic programs rather than for the iconic businessman whom many saw as the savior of the insti-

tution. However, a handful of former Myers University administrators said the school’s administrators and investors were caught up in the allure of profits from online learning and lost sight of the school’s original strength — local business education. Len Rose, a former Myers University administrator who stayed on board with Chancellor for about 15 months after the acquisition, characterized the university’s leadership in an e-mail as “callous, anti-intellectual, insensitive egofreaks.” He went on to say “their quest for the Holy Grail of an online money fountain was ill-advised and obviously unsuccessful.” Joyce Banjac, who on an interim basis served as Myers’ last president, said Chancellor’s leadership entered into the online educational marketplace too late. “The market was already mature,” she said. “They already took away Myers and previously Dyke’s strength — business education in Northeast Ohio. I think they ended up getting taken with glamour of online education and the profits.” ■

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JULY 15 - 21, 2013

Aleris to add jobs in Elyria when Indiana plant closes Shedding excess capacity, aluminum maker favors efficient recycling facility By DAN SHINGLER dshingler@crain.com

Beachwood-based Aleris International is bringing some jobs to Elyria, thanks to its decision to consolidate two of its aluminum recycling operations. “If you have two facilities that are not at capacity, it’s more efficient to bring all that work under one roof,” said LG Tackett, vice president of

Contact: Phone: Fax: E-mail:

operations for Aleris’ recycling and specification alloys division in North America. Aleris will shut a similar operation in Hammond, Ind., and move the work to Elyria over the next several months, resulting in about 15 new jobs at the Elyria operation, Mr. Tackett said. Both facilities took scrap from Aleris’ own aluminum production processes, as well as scrap from customers who make aluminum castings and other products, and used it to produce oxidizing agents that are used in making steel. Mr. Tackett said the operation in Elyria is physically close to many of

Denise Donaldson (216) 522-1383 (216) 694-4264 DDonaldson@crain.com

Aleris’ steelmaking customers in the northeastern part of the country. The 58,000-square-foot operation already was the company’s most efficient, Mr. Tackett said, and it has room to expand if and when the business grows. So far, the company has spent about $600,000 upgrading equipment at the plant and four new hires already are in training, Aleris reports. Elyria Mayor Holly Brinda said Aleris did not ask for any incentives from the city. She is glad Aleris is expanding. “It demonstrates that we’re still an important part of the steel manufacturing supply chain here in Northeast

Ohio,” Ms. Brinda said. “And we’re always happy to see jobs moving into Elyria, rather than out of Elyria.” The U.S. steel industry has had its ups and downs in recent years. Overall, production so far this year is down slightly from 2012, industry data show, but U.S. mills generally are running at 75% to 80% of capacity, up sharply from their recessionary levels of 2009. Like Aleris, steelmakers have been trying to keep their most efficient mills running at high rates of capacity, including in Cleveland, where steel giant ArcelorMittal restarted its mill before most others. Aleris did not specify which steelmakers were its

REAL ESTATE

customers, but Mr. Tackett said the company sells its oxidizing agent to multiple steel companies across the region. Much of what the Elyria plant does is sizing, sorting and packaging product, so the work does not require a high skill level in many cases. As a result, Mr. Tackett said the company did not have a difficult time finding potential workers. “We can basically train them,” Mr. Tackett said. Aleris produces aluminum used to make aircraft, automobiles and industrial equipment such as heat exchangers. Its worldwide sales for the first quarter were $1.1 billion. ■

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AUCTION

LEGAL NOTICE

COMMERCIAL SPACE

REAL ESTATE AUCTION | AUG 22 COMMERCIAL / INDUSTRIAL / OFFICE / LAND ALL PROPERTIES OFFERED ABSOLUTE OR WITH BELOW MARKET PUBLISHED RESERVE PRICES!

PUBLIC AUCTION

Chartwell Group, LLC - Featured Listings

1 Former Goodwill Headquarters

2295 E. 55th St. Cleveland, OH 44103 59,000 SF Office/Warehouse/Storefront

OFFERED ABSOLUTE, REGARDLESS OF PRICE!

Suggested Opening Bid: $50,000 3-Stories on 2+ acres, new HVAC, 9’12’ ceilings, 7 docks, 2 elevators, fully sprinklered, cafeteria w/kitchen equipment, cameras/security system. Tons of parking. 1 Mile North of I-77 & E 55th interchange. On-Site Inspections: Tues., July 30, Aug. 6 & 13, 10:00 am - 12:00 Noon.

Omni Fitness Club

6600 W. 130th St., Middleburg Hts., OH 44130 60,000 SF Operating Fitness Center

OFFERED ABSOLUTE, REGARDLESS OF PRICE!

Suggested Opening Bid: $100,000 3-Story fitness center on 5.35 acres. All equipment & memberships could be available. Unlimited possibilities for the building and site. Zoned: General Business. High traffic area near corner of Pearl Rd. & 130th. On-Site Inspections: Thurs., Aug. 1, 8, 15, 1:00 pm - 3:00 pm.

Former KFC Restaurant

536 Bronson St., Medina, OH 44256

14+ Ac w/ 3 commercial development tracts situated in a high traffic area. City utilities & are zoned B2 General Business. PARCEL #1: Outlot 2, 3 & 4 consist of 1.16+/- Ac per lot w/ a total of 3.48 Ac. 631’ frontage on CR 236 & 631’ frontage on Timberstone Drive. All lots have good exposure & two curb cuts. Taxes: 867.12/yr 2012. PARCEL #2: Outlot 5 has 1.20 Ac. This tract has 210’ frontage on Milestone & 228’ frontage on CR 236. Good corner exposure. Taxes: $352.00/yr 2012. PARCEL #3: 9.908+/- Ac w/ approx. 500’ frontage on Timberstone Drive. Access by Timberstone Drive; adjoins Strip Center on west side. Taxes: $2,824.44/yr 2012. Terms: 10% down day of sale, balance at closing. 2% buyers premium added. Broker Participation Welcome!! **Visit our website for more details!!** These Parcels will be offered via our Multi Parcel Method. Buy one or all! The Skutch Company, Ltd. – Receiver WILSON AUCTION & REALTY CO., LTD. 825 N. Main St. Bryan, OH 43506 Toll Free: 866-870-5500 Auctioneers: Wayne M. Wilson CAI, Brent J. Wilson CAI www.WilsonAuctionLtd.com

135,000 SF Ind./Warehouse/Distribution

OFFERED ABSOLUTE, REGARDLESS OF PRICE!

Suggested Opening Bid: $50,000 Metal & masonry construction with 132,000 SF fully sprinklered industrial space, 3,000 SF office & 13,600 SF lower level storage. 7.24 acre site w/100+ car prkg. 18’-26’ ceilings, 11 docks & 3 drive-ins, rail siding w/2 doors. Minutes from I-71, SR-18, I-76, I-271 & I-80. On-Site Inspections: Wed., July 31, Aug. 7 & 14, 10:00 am - 12:00 Noon.

Receiver Ordered Sale!

22301 Rockside Rd., Bedford, OH 44146

OFFERED WITH A PUBLISHED RESERVE OF ONLY: $85,000 Lender directed sale, partially equipped w/ drive-thru, seating for 40+ & parking for 22+. high traffic area next to Walmart & zoned B-3. On-Site Inspections: Tues., Aug 6 & 13, 2:30 - 4:00 pm.

20950 Center Ridge Rd., Rocky River, OH 44116

40,212 SF Office / Retail

4415 Lee Road, Cleveland, OH 44128 (NE Corner of Lee & S. Miles Rd.)

OFFERED WITH A PUBLISHED RESERVE OF ONLY: $97,350

OFFERED ABSOLUTE, REGARDLESS OF PRICE!

3-Story plus full walk-out lower level on 2/3 acres. Perfect opportunity for general/med, offices or retail use. Directly across street from a 474,000 SF power retail center. Highly desirable retail/office/location. Minutes from I-90 & I-271. On-Site Inspections: Thurs., Aug. 1, 8 & 15, 10:00 am - 12:00 Noon.

Suggested Opening Bid: $46,500 12,895 SF on 2.72 acres. Corporate seller directs sale w/built-in financing! Zoned for car salvage, repair & storage. 36,000 SF additional land usage of railroad rite-of-way. On-Site Inspections: Thurs., Aug 8 & 15 & Tues., Aug. 20 from 2:30 - 4:00 pm.

Former Rose Lounge

2.85 Acre Development Site with Mixed-Use Zoning

Engle Road, Middleburg Hts., OH 44130

To fill your space, list your Executive Property, Industrial, Commercial, Retail, Office or Warehouse space here.

3219 Copley Rd., Copley, OH 44321

OFFERED ABSOLUTE, REGARDLESS OF PRICE!

Suggested Opening Bid: $22,500 4,300 SF multi-purpose bldg. on 0.50 acres. Contents removed & bldg. is ready for renovation. 40+ parking spaces, zoned I-1, industrial. SELLER FINANCING BEING OFFERED! On-Site Inspections: Wed., Aug 7, 14 & 21, 2:30 - 4:00 pm.

9 10 Acres Adjacent to Eastland Mall, Columbus, OH 43232

OFFERED ABSOLUTE, REGARDLESS OF PRICE!

Suggested Opening Bid: $10,000 Prime commercial location near wellestablished mall. Tenants include: Macy’s, Sears, JC Pennys, Champs, Vitamin World. High traffic area with great demos. Minutes from I-270.

ATTENTION INVESTORS & HOME BUYERS:

Also included in this sale are 5 houses in Brunswick/Medina, 12 Houses in Youngstown / Campbell and 3 Home Sites

For Brochure & Terms of Sale, Call:

www.ChartwellAuctions.com 216-360-0009 Chartwell Group, LLC / Chartwell Auctions, LLC OH Auctioneers - Michael E. Berland, Gordon J. Greene & Mac Biggar

7500-7510 E. Pleasant Valley t 90,200 Total SF t Corporate Campus 6060 Parkland Avenue t 60,044 SF Office Building t For Sale or Sublease 23901 Aurora Road t 156,430 SF Industrial Bldg. t 4,537 SF Office Area Contact: R. M. (Mac) Biggar, Jr., SIOR, CCIM or David R. Stover, SIOR

216-360-0009 www.ChartwellGroup.com For daily on-line updates, sign up @ CrainsCleveland.com/Daily

Industrial Warehouse For Rent 4000 sq.ft. 400amp 3-overhead Doors, 1-Dock High Ceilings, Good Area

330-715-1679

Contact Denise Donaldson at (216) 522-1383

CLASSIFIED BUSINESSES FOR SALE BUSINESS OPPORTUNITY - NE OHIO Well established, SCRAP METAL BUSINESS Owner retiring after 20+ years. Serious Inquiries Only. Reply in confidence to:

Business For Sale Junk hauling & moving business, $250k first year gross, 4 vehicles, great growth potential, priced to sell.

Principals only: 216.570.8192

FOR SALE BAR & RESTAURANT Plus 2ND FLOOR APARTMENT D 1-2-3 Liquor License STATE ROAD in PARMA, OH Ag Real Estate Group, Inc. 216-504-5000 www.agrealestategroup.com

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OFFERED WITH A PUBLISHED RESERVE OF ONLY: $100,000 High traffic area near Bagley/Engle Road intersection & great visibility from I-71. Prime location for office, hotel & more.

5777 Grant Avenue t 110,945 SF Industrial Bldg. t Receivership - Bring Offers!

By Order of Court Appointed Receiver 14+ Acres Development Property & Outlots Offered in 3 Parcels Tues, July 30, 2013 @ 12PM Location: 7430 Timberstone Drive, Findlay, OH 45840 CR 236 & Timberstone Drive

BUSINESS SERVICE OWNERS! Submit your business card and promote your service.

To find out more, contact Denise Donaldson at 216.522.1383

National Online Professional Foodservice Distributor w/ local store. Retail/Wholesale since 1994. Owners to retire.

216-381-5540 leave message

DON’T FORGET: Crain’s Cleveland Business on-line @ CrainsCleveland.com

To place your Crain’s Cleveland Business Executive Recruiter ad Call Denise Donaldson at 216-522-1383

20130715-NEWS--21-NAT-CCI-CL_--

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CRAIN’S CLEVELAND BUSINESS

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Outside: Even the cold often doesn’t deter region’s residents from dining outdoors continued from PAGE 1

“Clevelanders are all so crazy, to the point of when it’s 50 degrees in March, they’ll ask us to put seats on the patio,” Mr. Althoff said. ABC’s sister restaurants — ABC the Tavern in Ohio City, XYZ the Tavern at 6149 Detroit Road and Ontario Street Café in downtown Cleveland — all boast outdoor seating. ABC the Tavern Uptown joined their ranks late last month with a patio that seats about 50 and cost less than $10,000 to build. “It was quite a process, but it was well worth it,” Mr. Althoff said. The location had to undergo Cleveland licensing procedures and safety regulations, but in the end ABC was rewarded with a section that doubled its existing seating, which overlooks the new Museum of Contemporary Art Cleveland. Although patio dining is popular and apparently hasn’t reached a saturation point in the Cleveland market, adding the seating isn’t a snap. Shannon Libby, spokeswoman for the Ohio Department of Health, said restaurants must submit their plans for open seating to their local building and health departments. In Cleveland, permits are required for each building trade involved in the construction process. In the case of patio additions, the permits could include a general permit, plumbing and electrical permits, contractor permits and even water and sewer connection and fire protection permits. Accent, at 11460 Uptown Ave., just down the street from ABC the Tavern, added patio seating this June, too. The close proximity of the two restaurants may suggest a battle of the patios. However, manager Michaela Kehoe says the 96-seat section was part of Accent’s original design. It’s too soon to tell how well the new seating will pay off for Accent, but with the covering of surrounding buildings and live music on the patio, it is bound to be profitable, Ms. Kehoe said. About a half-dozen businesses — most restaurants, but some retail — on Uptown Avenue have taken their business outside, creating a promenade area, Ms. Kehoe said. The patios add to the pedestrian feel of the neighborhood and unify the mix of businesses that line the street, which plays host to block parties, ping pong tournaments and cornhole competitions. Even when a restaurant is fairly isolated, its patio can become a center for community events. “I’m kind of by myself over here,” said Christopher Lieb, partner at Tremont Taphouse, 2572 Scranton Road. But that doesn’t stop the community from congregating on his $65,000 patio. The patio, which features a fire pit, bar space and seating for about 50, opens every year as soon as weather permits. It is home to Monday movie nights on its eight-foot by 12-foot outdoor screen, dog-friendly “yappy hours” benefitting local animal shelters on Tuesday nights, and Wednesday bike nights for area cyclists.

Worth the effort Eric Williams, owner and chef of Momocho, inherited a patio at his Ohio City restaurant at 1835 Fulton Road. Unfortunately, the split level structure was constructed of uneven bricks and pavers, surrounded by an old wooden fence, and it slowly was succumbing to the roots

of an old mulberry tree. After the first three seasons at the location, Mr. Williams moved to update the outdoor space. The $12,000 redesign included leveling the ground, creating handicap-accessible seating, updating plumbing to ensure proper drainage, improving electrical systems, and installing new cedar fencing and a new server station. A new maple tree, wrought iron furniture and a 38-foot locally handcrafted L-shaped bench finished off the remodel. But before all these changes were possible, Mr. Williams had to jump through a few hoops. Because Ohio City is a historical neighborhood Mr. Williams approached Ohio City Inc. for its stamp of approval. The community development organization’s only stipulation was to not add anything ostentatious, like a giant waterfall or painting the thing pink, Mr. Williams said. The new patio paid for itself in less than one season. It seats anywhere from 24 to 36 additional customers and brings in an additional $125,000 to $150,000 in the four months of the year it is available, Mr. Williams estimated. It also helps with crowd control and wait times on a busy night. Although Mr. Williams recognizes the value of patio seating, it is not logistically possible at his new Lakewood restaurant, El Carnicero, at 16918 Detroit Ave. But he is so sold on the benefits of outdoor seating that he worked out an agreement with his landlord to split the cost of adding to the building awnings with either retracting bay windows or garage doors to accomplish the patio spirit.

Cold outside? No problem Another option for a restaurant short on space that still wants the outdoor spirit is sidewalk seating. Although it can accommodate fewer patrons, sidewalk seating can be an inexpensive way to give customers an outdoor dining experience. Glorine Vlach, hostess at Le Petit Triangle at 1881 Fulton Road in Ohio City, estimates its 10-seat sidewalk seating area cost only $800, including furniture, fencing and plants. The small restaurant can get hot quickly, and seating outside was a no-brainer, Ms. Vlach said, but the property was too small to house a patio. Sidewalk seating presented the perfect compromise, offering fresh air from April to October. Jim Callam, president of Winking Lizard Inc., an operator of 14 restaurants, is a big believer in outdoor seating. “We won’t open a store without a patio in the future,” Mr. Callam said. Mr. Callam is working on a patio expansion at the Winking Lizard’s Lakewood location, at 14018 Detroit Ave. The project is set for completion in mid-July with expenses coming in between $25,000 and $30,000. With the expansion, the patio will hold 100 seats instead of the current 40. Although Mr. Callam does not expect a big increase in profit, he believes the patio is more about satisfying the needs of the customer. Ongoing renovations and improvements are part of his solution to maintain customer interest. Mr. Callam sees crazy Cleve-

landers using the patio all year long. “You’d be surprised about how often people go outside, even in the colder months,” he said. He estimates the patio sees about 120 to 140 pleasant days a year; however, it is open year-round for tailgaters and those hardened to the elements.

It’s a must Although the Strongsville taproom and brew house, The Brew Kettle, 8377 Pearl Road, isn’t part of a patio-centric neighborhood — it sits in a small retail strip in front of a Walmart — its owners nonetheless installed an outdoor seating section last season to stay competitive. The $30,000, 45-seat patio was added to appease customers more so than to turn a profit, but management already found itself opening the patio for the season months earlier than its planned June 20 open date. “As soon as the sun came out we found people a little more interested,” said Janet Hall, restaurant manager at The Brew Kettle. Management plans to pique that interest with outdoor upgrades such

JANET CENTURY

Accent, located on Uptown Avenue in Cleveland’s University Circle neighborhood, added patio seating in June. as live entertainment, propane heaters and more greenery. The patio at The Brew Kettle is a popular location for cigar smokers. Although patrons cannot smoke inside the dining room, staff permits cigars on the patio. “Drinking beer and smoking cigars is a pair,” Ms. Hall said. Although each restaurant differs in its smoking regulations, it is clear patios were not created solely to placate smokers. According to the Ohio Bar Association, patios with overhead coverings as simple as umbrellas and

surrounded by two barrier walls are considered enclosed spaces. This means patios often are under the jurisdiction of the state’s 2006 Smoke Free Workplace Act. Regardless of whether a restaurant permits smoking on the premises, Clevelanders’ demand for outdoor seating has become clear. “In Cleveland it’s almost a necessity to have a patio, because everyone wants to take advantage of the nice weather when we have it,” Tremont Tavern’s Mr. Lieb said. ■

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THEINSIDER

THEWEEK

REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

JULY 8 - 14

Hartland to make city heart of its operations

The big goodbye: Chancellor University, the

■ By next May, the employees of Hartland & Co. will be housed under one, downtown Cleveland roof. The independent institutional and wealth advisory firm last month signed a 10-year lease to move its offices from the 16th floor to the seventh floor of the 1100 Superior Building so it can move its 27 Beachwood-based employees downtown, said Dave Fulton Jr., president. The nearly 20,000 square feet on the seventh floor is more than double what Hartland occupies currently, he said. The move and the more than $1 million of planned renovations to the new space would follow Hartland’s 2011 acquisition of Chess Financial Corp., a Beachwood wealth advisory firm. Hartland expects to move its 52 employees into its new space by May 1. Though the downtown rent costs “a little bit less” than the Beachwood rent, the move won’t save the firm money in the short run given the renovations it has planned, Mr. Fulton said. “What it really does is it puts all of our smart people in one place,” Mr. Fulton said. And being in that single place in Cleveland carries benefits, such as proximity to professional service providers and the ability to attract talent, he said. “We think that to continue to attract the really bright, younger people, it’s important to be downtown,” he said.— Michelle Park

beleaguered for-profit college in Seven Hills formerly known as Myers University, said it will close its doors Aug. 25. Chancellor did not give a reason for the planned closure in its announcement to students or in a subsequent press release. However, Chancellor said it has made arrangements that will allow its students to transfer to Alliant International University, a private, not-for-profit school in California. See page 3 story and editorial on page 8.

Paper trail: With The Plain Dealer about to end seven-day-a-week home delivery, the Akron Beacon Journal announced it would be expanding its home delivery territory by entering turf that traditionally has been the stronghold of Cleveland’s daily newspaper. In a Page One story in last Monday’s edition, the Akron newspaper said it now will offer home delivery to residents in Brecksville, Broadview Heights, Brunswick, Hinckley, North Royalton and Strongsville. “We have heard from residents of these communities who want to read the Beacon Journal,” Jim DeLuca, vice president for circulation, stated. “With this demand we believe that now is a good time to deliver our newspaper to these readers.”

Shake it up: Big changes are coming to the executive suite at Cliffs Natural Resources Inc., which over the last 12 months has seen its stock lose nearly two-thirds of its value and has run into problems with a big investment in Canada. The Cleveland-based producer of iron ore and metallurgical coal said Joseph Carrabba has informed the Cliffs board of his plans to retire as president and CEO by Dec. 31. Cliffs also said Laurie Brlas, its executive vice president and president of global operations, has retired and left the company, though it gave no reason for her sudden departure. James Kirsch, who suddenly resigned last November as CEO of specialty chemical maker Ferro Corp. and currently serves on the Cliffs board as lead director, has been elected non-executive board chairman, replacing Mr. Carrabba as chairman.

■ An executive who is not a certified public

accountant has done the uncommon and made partner at a local CPA firm. Jonathan Ebenstein, who joined business advisory firm Skoda Minotti in 2006 to handle its marketing, became in June the firm’s first nonCPA partner. He earned that distinction by making “a big difference in the firm and … for our clients,” said Greg Skoda, chairman. Ebenstein That difference, Mr. Skoda said, has taken the form of Mr. Ebenstein not only managing internal marketing for Skoda Minotti, but also launching in 2009 and growing an ad agency-like practice area that does marketing for clients. The practice serves more than 25 companies today. “To be the first non-CPA partner in the firm is something that we don’t take lightly,” Mr. Skoda said. “He worked hard and really developed some pretty dramatic results.” The promotion makes Mr. Ebenstein, who is managing director of Skoda Minotti Strategic Marketing Services, one of more than 20 partners of the firm and one of 14 equity partners, Mr. Skoda said. “It’s quite an accomplishment,” Mr. Ebenstein said. “I think it means that … I’ve reached a level of respect with other people who are at the top of their profession.” His brethren took note of the word “partner” by his name on the final slide of a presentation at a recent CPA marketing conference, Mr. Ebenstein said. “Somebody raised their hand and said, ‘When did you become a partner? and I said

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Excerpts from recent blog entries on CrainsCleveland.com.

They’re in the money

Idle chatter: FirstEnergy Corp. is preparing to deactivate more of its coal-fired power plants. The Akron-based electric company said it expects to idle two coal-fired plants in Pennsylvania by Oct. 9. FirstEnergy said the decision is based on the cost of compliance with environmental regulations along with the continued low market price for electricity. The deactivation of the two Pennsylvania plants will be in addition to nine plants FirstEnergy announced for deactivation last year.

The place to be: Another software company has moved to downtown Cleveland. Dakota Software has more than doubled its space to 13,200 square feet by taking up residence in the Idea Center in the Theater District, though a few of its 30 local employees have yet to move out of its previous headquarters at Commerce Park in Beachwood. The company needed the extra room because it plans to add about 20 people over the next year or so, president Reg Shiverick said. Bits and pieces:

Mar Systems Inc., a company in Solon that produces an absorbent material that removes metal particles from water, has received a $4 million investment. Mar raised the money from Early Stage Partners of Cleveland, which already had invested in the company, as well as from individuals and family investment funds, according to its CEO, Richard Stuebi. … The First National Bank unit of F.N.B. Corp. of Hermitage, Pa., said it plans to establish its regional headquarters in downtown Cleveland as part of its pending acquisition of Solon-based PVF Capital Corp. First National said it has leased space on the 14th floor of the 55 Public Square office building and will open a downtown branch on the building’s first floor by Nov. 1. Get local business news all week long at www.crainscleveland.com.

COMPANY: Buyers Products, Cleveland PRODUCTS: Three-point latch system toolboxes The company, which makes products for the mobile equipment market, says the new three-point latch underbody toolboxes expand its comprehensive line of tool and truck boxes. Buyers Products says its die-cast, locking, T-handle latch system “provides better security, tighter door sealing and less stress on the hinges of the underbody toolboxes.” The underbelly toolboxes are available in a variety of size options. They are offered in polished, diamond-tread aluminum or in a 14gauge steel box with a 12-gauge steel door in black or white powder-coat finish. Buyers Products says the toolboxes feature a half-inch, automotive-style door gasket to protect against leaks. The rain-channel design and a continuous, hidden hinge also protect against moisture and road dirt, the company says. “The three-point, T-handle latch design on these underbody toolboxes provides contractors with better security for their equipment,” said Brian Smith, marketing manager at Buyers Products, in a statement. “The special features on these boxes are part of the quality design that Buyers customers recognize and expect from our products.” For information, visit www.buyersproducts.com.

■ Unlike its weak sibling in the media industry — that would be newspapers — the television business remains highly lucrative. Bloomberg reported that Oak Hill Capital Partners, the private equity firm backed by Texas financier Robert M. Bass, “will reap more than a 240% gain selling Local TV Holdings LLC to Tribune Co. for $2.73 billion.” Chicago-based Tribune is buying all 19 television stations, including Cleveland’s Fox affiliate WJW-TV, Channel 8, that are owned by Local TV. The all-cash purchase would be the biggest U.S. broadcasting deal in six years, Bloomberg said. Oak Hill owns about 95% of Local TV, Bloomberg reported. Including $530 million it already has made in dividends, Oak Hill “will garner more than $1.7 billion, or 3.4 times the firm’s $493 million equity investment,” according to the story. “Oak Hill did a very good job working with management to improve margins by cutting back expenses and doing better than their peers in core revenues,” Carl Salas, senior analyst at credit rating firm Moody’s Investors Service, told Bloomberg. The company’s earnings before interest, taxes, depreciation and amortization “is about $250 million a year based on an average of last year’s results and this year’s estimate,” according to Mr. Salas. That “represents a profit margin that has risen to about 40% from 33% in 2009,” Bloomberg reported.

The good old days ■ Parents looking forward to the day when their kids have moved out and they’re free to do anything they please might want to check out a Wall Street Journal story that included data from researchers at Bowling Green State University. New empty-nest couples “might be in for

just last week and everybody in the room applauded,” he said. — Michelle Park

MetroHealth looks to get in on ACO action ■ The accountable care organization — a still somewhat murky facet of President Barack Obama’s health care reform law — has been all the rage in the health care space, and it appears the MetroHealth System wants a piece of the action. MetroHealth CEO Dr. Akram Boutros told Crain’s last week the health system, which is subsidized by Cuyahoga County taxpayers, was submitting an application to the Centers for Medicare & Medicaid Services to become an accountable care organization. If accepted, MetroHealth and CMS would share in any potential savings incurred by coordinating care for Medicare patients. If accepted, MetroHealth would join University Hospitals and Summa Health System in Akron as Northeast Ohio’s other Medicare ACOs. ACOs are designed to band together doctors and hospitals to share responsibility for providing high-quality and low-cost care to Medicare patients. The move ties in with MetroHealth’s quest to beef up its ambulatory network, as demonstrated with the recent opening of its new health center in Middleburg Heights. MetroHealth’s desire to extend its reach throughout Cuyahoga County is expected to bring more Medicare patients into the health system’s fold. “If we are embedded with people, we will be the most likely beneficiary,” Dr. Boutros said. — Timothy Magaw

a surprise,” The Journal said. “In the sudden quiet they may come to discover that years on a treadmill — raising children, building careers — have left them very different people than they were in the their 20s or 30s. In short: They’ve woken up with a stranger.” There are signs of this empty-nest syndrome in statistics that track divorce rates, according to a March 2012 white paper, “The Gray Divorce Revolution,” by Bowling Green researchers. “In 1990, fewer than 1 in 10 individuals who divorced were 50 or older,” The Journal reported. “Almost 20 years later, that number jumped to more than 1 in 4. In 2009, more than 600,000 people ages 50 and over got divorced.”

An enduring partnership ■ Forbes.com examined the nearly 60-year relationship between Akron-based Goodyear Tire & Rubber Co. and NASCAR. It’s a strong marketing partnership, officials with Goodyear and NASCAR say, and the tiremaker has learned much on the racetrack that it applies to its passenger-car tires. Goodyear’s lead engineer, Charlie Schmalix, said examples of this technology transfer include the concept behind run-flat tires; complex recipes and chemical formulas in tire materials that allow Goodyear to dial up this or that desired physical characteristic; and the use of Kevlar in tires, the same material as bulletproof vests. “It’s even true that once in a while the company learns something in passengercar tires it can apply to race tires,” Forbes.com noted. “The kind of races Goodyear sponsors rarely take place in the rain, but on those occasions, Goodyear learned to employ water-shedding tread patterns for race tires that originated in passenger-car tires.”

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ENGINEERING: UNIQUELY EUROPEAN. PRICING: UNIQUELY COLLECTION. Mercedes-Benz of North Olmsted

569

All-New 2014 Mercedes-Benz E350 4MATIC®All-Wheel Drive

Porsche of North Olmsted

The redesigned 2013 Boxster. Lease for $599/month.

Per month lease for 36 months. $4,414 due at signing. ($3,050 down payment, $795 acquisition fee, $569 ﬁrst payment)

599 24

$54,400 MSRP, 7-Speed Automatic Transmission, Premium 1 Package: Rear View Camera, mbrace2™, COMAND® w/Navigation and Voice Control, iPod®/MP3 Media Interface, SiriusXM® Radio w/ 6 Mos. Service, Power Rear-Window Sunshade, 18” AMG® Wheels, Sport Package, harman/kardon® Logic 7® Surround Sound System, Heated Front Seats

/ MONTH MTHS

$1,494 due at signing Excludes tax, title and doc fee. No security deposit required.*

Porsche of North Olmsted A Part of Collection Auto Group 28400 Lorain Road, North Olmsted, Ohio 44070

Mercedes-Benz of North Olmsted

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28450 Lorain Road . 888-450-8064 . www.mbohio.com *Financing or leasing through Mercedes-Benz Financial is subject to tier one credit approval. 2014 E350 – 36 months, 10,000 miles per year. 25¢ per mile thereafter. $4,414 due at signing. Doc fee, tax and title additional. No security deposit. In-stock units only or while supplies last. Lease offers expire 7/31/13. Available to qualiﬁed customers only. © Mercedes-Benz USA, LLC.

$599 per month for 24 months at 5,000 miles per year, .30¢ per mile after 10,000 miles, $1,494 due at signing (First payment $599, acq. fee $895 and $0 cash down). Tax, title and doc fee additional. Payment or upfront fees do not include sales or county tax. Financing is subject to credit approval. Stock# PD114760. MSRP $57,385. Security deposit waived. Offer good through 7/31/13. ©2013 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times. Vehicle shown includes optional equipment available at additional cost.

Maserati of Cleveland THE ALL NEW 2014 MASERATI QUATTROPORTE IS HERE.

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Maserati of Cleveland 28300 Lorain Road, North Olmsted 888-918-7931 www.maseraticleveland.com *$795 Acq fee. $250 Documentation fee, Security Deposit, DMV fees & Sales Tax due at signing. Based on 10,000 miles/year with $0.60 for each additional mile. Qualiﬁed S Tier buyers through Ally Financial. Offer is only good while supplies last. Ad must be present at arrival to dealership and before the write up of a deal. Offer nontransferable. Offer can be canceled at anytime without notice by dealer. Vehicle image for illustration purpose. Offer expires 7/31/2013

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THE ALL-NEW 2013 320i xDRIVE Well-equipped including features such as Automatic Transmission, Bluetooth, Moonroof, Comfort Access keyless entry, Power front seats with driver seat memory, Satellite radio, with 1 year subscription, Auto-dimming interior and exterior mirrors, Storage package, Universal garagedoor opener, Lumbar support. Lease From:

289

mo. / 36 mo. *

BMW Cleveland

6135 Kruse Dr. • Solon • 1-866-210-6710 www.BMWCleveland.com

BMW Cleveland

* Due at delivery $289 First payment, $3,015 Down payment, $725 Acquisition fee, $0 Security Deposit and *$750 Loyalty Cash. Based on MSRP of $40,625.00. Vehicle may need to be ordered. Total Lease payments are $10,404.00. Excludes tax, title, license and registration fees. Program available to qualifi ed customers and not everyone will qualify. Subject to credit approval. 30K total miles allowed. Contact BMW Cleveland for details. Dealer contribution may affect terms. *$750 Loyalty Cash available for returning BMW customers only. 1Which ever comes fi rst. For complete details on BMW Ultimate Service ® visit bmwusa.com/ultimateservice. © 2013 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.

BMWCleveland.com 440-542-0600

The Ultimate Driving Machine®

RANGE ROVER EVOQUE

120 AWARDS AND COUNTING. A JOURNEY 65 YEARS IN THE MAKING.

2014 Jaguar F Type S Lease for $999 x 48 months with $5,995 down plus bank, doc and license fees and local taxes at delivery. 6137 KRUSE DR., SOLON (440) 542-0601 www.jaguarcleveland.com

$399 PER MONTH FOR 36 MONTH LEASE

$2,995 DOWN, BANK FEE, DOC FEE, PLATES. $4,455 DUE AT DELIVERY PLUS TAX

LAND ROVER SOLON CLEVELAND

6137 KRUSE DR., SOLON • 1-866-210-6707 www.landroversolon.net

* 48 month lease/10,000 miles per year. $5,995 cap reduction plus first payment, bank fee, doc and plates. $7,795 total due at delivery cash or trade plus tax. With tier 1 credit thru Jaguar Financial Services. Good until 7/30/13. Stock #J01970.

* Lease rates shown for 2013 Range Rover Evoque to qualified buyers through US Bank. $2,995 down plus bank fee, doc fee, license fees and tax. Total due at delivery $4,455 plus local taxes. Actual rates and terms may vary. All amounts shown are estimates, retailer sets actual amounts. Lessee responsible for insurance, maintenance, excess wear and excess mileage over 40,000 miles at $0.30 /mile. Based on MSRP of $42,040 (including destination and delivery). Lessee has the option to purchase vehicle at lease end at price negotiated with retailer at signing. For special lease terms, take new vehicle delivery from retailer stock by 7/31/13. Termination fee may apply. See your Land Rover Retailer or call 1-800-FIND-4WD for qualifications and complete details. ©2013 Jaguar Land Rover North America, LLC.

6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com