20160815-NEWS--1-NAT-CCI-CL_--
8/12/2016
4:27 PM
Page 1
VOL. 37, NO. 33
AUGUST 15 - 21, 2016
Source Lunch
Business of Life
Dana Mitchell, site manager for AECOM Giant firm plays a major role in Northeast Ohio construction. Page 16
Yoga is extra refreshing at Platform Beer Co.
CLEVELAND BUSINESS
The List
Highest-paid non-CEOs Page 19
Page 15
BANKING
GOVERNMENT TECHNOLOGY
Regional Microwave market is internet an ripe for volatility alternative By JEREMY NOBILE jnobile@crain.com @JeremyNobile
Banks are rather sweet on Northeast Ohio right now. And whether they’re already at the dinner table or trying to pull up a seat, everyone wants a bigger bite — or, in some cases, their first taste. Banking M&A in this market and across the country has been steady for years now. But some recent deals shaping the market today are creating fresh opportunities for banks large and small to capitalize on disruption and gain size in a tough banking climate inconveniently underscored by low, flat interest rates and a costly regulatory environment. For one, there’s a widening gap between regional and community banks in the wake of Akron’s FirstMerit Corp. merging into Huntington Bancshares Inc. That, alone, eliminates a significant competitor in the lending business while simultaneously allowing neighboring banks to pick up both customers and bankers alike who are caught up in the shuffle. While it will be Huntington’s goal to stem those losses, they’re simply going to happen — and have already. Several FirstMerit bankers have joined competing companies since that deal was first announced early this year. “My sense is that banks have been opportunistic in this market and have been long looking to grow through acquisitions or acquiring talent,” said Fred Cummings, president at Cleveland’s Elizabeth Park Capital, a bank-focused hedge fund. “But this is an opportunity to accelerate their growth, particularly in that human capital standpoint.”
SEE BANKS, PAGE 4
to fiber
Providers installing antennas on buildings, towers all over town
By CHUCK SODER csoder@crain.com @ChuckSoder
Microwaves: They’re good for heating up burritos and transmitting data at incredibly high speeds. At least three local companies are setting up microwave antennas on tall buildings and towers throughout Northeast Ohio. Their goal: Provide faster internet service to companies turned off by the cost of putting fiberoptic cable in the ground. Granted, microwave technology has been used to transmit data for decades, but it’s better and cheaper than it used to be — which is why some companies now use it to offer ultra-fast gigabit speed service. One of them is NetX Internet. The Westlake-based company has grown “exponentially over the last two years,” said CEO Ron Deus. NetX has microwave antennas in a long list of cities SEE INTERNET, PAGE 18
Groups go to ballot for causes By JAY MILLER jmiller@crain.com @millerjh
If it weren’t for a volatile and entertaining presidential election campaign, a trio of ballot issues that test the limits of local government would be getting more attention. These initiatives — an alternative process allowing citizens to enact legislation or even charter and constitutional amendments — are appearing on Northeast Ohio ballots even though they are not entirely citizen-initiated. Two of the issues affect the city of Cleveland. One would raise the minimum wage in the city, and the other seeks to expand the rights of parttime workers. The third issue, being pursued in Medina County and several other parts of the state, seeks to reclaim from the state local control over the oil and gas industry. Toledo attorney Terry Lodge, who represents the Medina County group, sees the efforts as a response to citizens being left out of the political decisionmaking process and feeling powerless. “What you are seeing is increasing public frustration,” he said. “People are trying to take back power locally.” Local officials, though, view things differently. City councils and others, including the Ohio Secretary of State, see outside groups using their communities as guinea pigs for broader agendas. In the case of these three local issues, two are attempts to get around harder-to-challenge state laws. The other introduces new concepts in employment regulation that its backer couldn’t get on the ballot in his home state but would like to see spread. Last Wednesday, Aug. 10, in Cleveland, city council chose not to contest an initiative that would require employers to give part-time workers
Ron Deus, CEO of NetX, has microwave towers on top of Erieview. (McKinley Wiley for Crain’s)
Entire contents © 2016 by Crain Communications Inc.
SEE BALLOT, PAGE 18
FALL CULTURE PREVIEW
Our look at popular music, classical music, museums, theater and comedy FOCUS, Pages 11-14