Crain's Cleveland Business, May 20, 2024

Botched FAFSA rollout exacerbates the

COLLEGE COST

Time to plan for a ban on noncompetes

Future of an FTC ruling is unclear, but companies should prepare for effects

By Jeremy Nobile

ough it remains to be seen if an e ort by the Federal Trade Commission to ban the use of noncompetes in the business world is successful, companies should be getting a handle now on how such a change could a ect them.

“I’m telling clients to take a wait-and-see approach,” said Eric Baisden, co-chair of the labor and employment group at Benesch. “We have time to react. And it is not a difcult thing to create new agreements or invalidate the ones they have.”

How FTC’s noncompete ban could impact health systems. PAGE 20

“But you don’t want to be in a position where you can’t react if you need to,” he said. ere are already a few legal challenges to the FTCs ruling in motion now, including a key case brought by the U.S. Chamber of Commerce that seems to be taking the lead. at case also questions the FTC’s authority to enact such a ban.

“ is decision sets a dangerous precedent for government micromanagement of business and can harm employers, workers and our economy,” the organization

See FTC on Page 21

By Joe Scalzo

Like many college administrators, Janet Stimple, assistant vice president of enrollment services at Cleveland State University, uses the word “disastrous” to describe last winter’s rollout of the Free Application For Federal Student Aid (FAFSA).

She’s trying to make sure it doesn’t

have a similar e ect on Cleveland State’s fall enrollment.

While Ohio’s FAFSA lings were down about 17% as of April 12 — which is better than the nationwide average of 25% — the biggest statewide declines have been in Greater Cleveland. CSU is feeling the e ects in a major way, which is bad news for a university that’s already

See FAFSA on Page 20

“The biggest decreases are right in our backyard. They’re impacting the school districts whose socioeconomic classes are lower and have a higher racial diversity.”

Janet Stimple, assistant vice president of enrollment services at Cleveland State University

SPORTS

Golf shares the spotlight at Kaulig Companies Championship.

PAGE 12

The Garden’s backers seek a new home for innovation center

Midway Mall is ruled out as a site for the food research institute

By Stan Bullard

Midway Mall may be ruled out as a site, but proponents of e Garden, a center for food education, research and vertical farming, continue hunting elsewhere for a home for the complex.

Bara Watts, executive director of e Center for Food Innovation, a nonpro t based in Elyria that had Midway Mall on its list of potential locations, said in a

ECONOMY

Team NEO outlines lofty expectations for region’s aerospace, aviation industry.

PAGE 11

phone interview, “ e concept is bigger than the real estate involved. e idea is to nurture Northeast Ohio as a location for agricultural expansion and innovation. Our whole team is on board to continue the search.” at was the upshot of a meeting of e Garden’s backers after the Lorain County Port Authority voted May 1 to award the largely empty mall and its 100-acre site to Industrial Commercial Properties of May eld Heights for conversion to a multitenant business park. ICP bid $17 million for the site. e

See GARDEN on Page 18

Marcia Fudge coming back to Cleveland, joins Taft

By Jeremy Nobile

Marcia Fudge is coming back to Cleveland.

Cincinnati-founded law rm Taft announced that it has hired Fudge as a partner and its rmwide chair of public policy e ective Tuesday, May 14.

A retired politician, Fudge most recently served in President Joe Biden’s cabinet as the 18th U.S. secretary of Housing and Urban Development, a position she held from 2021 to 2024. As the rm notes, Fudge was just the second Black woman to lead HUD, having held the position amid a housing crisis worsened by the COVID-19 pandemic.

A member of the Democratic party, Fudge also served as a U.S. representative for Ohio’s 11th congressional district — which encompasses portions of Cuyahoga County and all of Cleveland — from 2008 to 2021.

“Former Secretary Fudge will dedicate a portion of her time to the rm’s ongoing e orts to combat the harmful e ects of forever chemicals,” Taft said in a news release. “Her signi cant experience and outstanding reputation will be invaluable to Taft’s clients, while also bolstering the rm’s relationships with governmental and corporate leaders both in her home state of Ohio and across the United States.”

A Taft spokesperson said that Fudge is expected to be primarily based out of the rm’s Cleveland o ce, where she will split her

time roughly 70% to 30% between Northeast Ohio and Washington, D.C.

“My top priority as a leader has always been to develop e ective solutions and results for the people and communities I have been called to serve,” said Fudge in a statement. “In my transition to life as a private citizen and attorney, it was important for me to land among professionals who are similarly dedicated to

River SaaS Capital launches rst-ever venture equity fund with $50 million

River SaaS Capital, a Clevelandbased provider of venture debtnancing for B2B software companies across the U.S., is launching its rst-ever equity fund to provide another layer of support to startups in its portfolio.

River SaaS, one of ve businesses operated by Westlake-based TruWest Holdings, rst began investing in startups in 2016. is more traditional venture fund marks an evolution in the company’s o erings and its role in the venture ecosystem as it can now provide both venture debt and equity nancing.

“Launching our equity fund marks a signi cant milestone in our journey to empower and scale high-potential B2B software-as-aservice businesses,” said TruWest co-managing member Matt Kennedy. “ is move is designed to fuel the next phase of growth for US-based SaaS businesses, ensuring they have the resources and backing to innovate, expand and lead in their respective markets.”

River SaaS chief investment ocer Wendy Jarchow said that after

many years of working with these businesses, “we began to think, why are we not participating in these equity rounds when we’ve been building relationships with them?”

“I think it really speaks to the strength of our ability to identify great deals to put in our debt portfolio, stand up those and be a value-added service provider, not just a capital participant, and support them on the equity side to help them scale further,” she said.

e rm’s $50 million TruWest Fund I will continue to focus on the same sort of startups as it’s historically worked with, which are typically at seed, seed-plus and Series A stages.

As o cials alluded to, the idea of the equity fund is ultimately to provide additional capital to companies in the River SaaS debt portfolio.

Jarchow said that deals may include acquiring equity stakes in a range between 10% to 20% depending on the valuation and how much is being raised. The firm could act as the lead investor in cases where it may make sense to do, or just participate in

solutions-driven work.”

Taft’s core values, culture, leadership principles, and commitment to its clients strongly align with my personal values, as does its modern approach to service,” she continued. “I greatly look forward to collaborating with my new colleagues in my role as partner and chair of public policy, which I am honored will allow me to return to my roots in Ohio, and maintain a strong presence in

Washington, D.C.”

In terms of other Ohio roots, Fudge earned her bachelor’s degree in business from The Ohio State University and her law degree from the ClevelandMarshall School of Law — or the Cleveland State University College of Law as it is now known following a decision to rename the school in 2022.

She began her career in public service in the Cuyahoga County

Prosecutor’s O ce and was the rst woman and African American to elected as mayor of Warrensville Heights.

e rm said that Fudge’s connections with Lacy Johnson, partner-in-charge of Taft’s Washington, D.C., o ce and a member of President Biden’s export council — whom she worked with while chair of the Congressional Black Caucus — was one of many factors considered in her decision to join Taft.

“It is an honor and privilege to welcome Secretary Fudge to Taft. What she has achieved in her career is inspirational, and her presence at Taft will be highly impactful for our clients and teams,” said Johnson in a statement. “On a personal level, I know rsthand that she is a great leader, who is insightful and collaborative in everything she does. Secretary Fudge knows how to bring people together — often with disparate viewpoints and experiences — to accomplish goals and to serve the common good.”

Taft ranks as the 83rd largest law rm in the U.S. in 2024, according to the latest Am Law 100. e rm reports 875 attorneys spread across nine markets and has grown attorney headcount and revenues by 250% and 325%, respectively, since 2017.

As of June 2023, Taft was the 13th largest law firm in Northeast Ohio as ranked by number of in-market attorneys with 69 at the time, according to Crain’s research.

a funding round.

“For companies that are in our debt portfolio, should they want to go out and raise equity, and we think it is a good opportunity that ts into a scope outside of writing a check, we would either participate in or lead that equity round,” Jarchow said.

How much the rm might invest per equity round may vary, though Jarchow said the expectation is to

make somewhere between eight to 10 investments from its fund.

e opportunity to get some equity capital from River SaaS could potentially serve as a draw to attract other startups to the debt fund itself.

Having the ability to learn more about startups in the debt fund before diving into an equity round gives River SaaS a sort of “elongated due diligence period, if you will,” Jarchow said.

Following a few recent exits, the River SaaS portfolio currently features 11 active companies, but that portfolio should grow a bit in short order as there are a few other debt investments in the pipeline being worked out.

Startups that River SaaS works with on the debt side typically have at least $1.5 million in annual recurring revenue or $150,000 in monthly recurring revenue.

Marcia Fudge served in President Joe Biden’s cabinet as U.S. secretary of Housing and Urban Development from 2021 to 2024. | BLOOMBERG

Jeremy Nobile

GENESIS

LEAP INTO A NEW LOAN WITH

Women’s Final Four lived up to the hype based on attendance

By Joe Scalzo

To measure the impact of this year’s Women’s Final Four, you have to go beyond tickets and television sets.

Just ask Cleveland.

e city’s Local Organizing Committee shared attendance and initial community engagement numbers for this year’s event, which not only drew soldout crowds to Rocket Mortgage FieldHouse — and a combined 40.5 million TV viewers for the semi nals and nal — but saw tens of thousands more attend the week’s ancillary events.

Highlights include:

◗ 20,624 fans visited Tourney Town, the free festival at the Huntington Convention Center.

◗ 22,740 fans visited Party on the Plaza.

◗ 8,000 Super Saturday Concert tickets sold out in just four days.

◗ 11,291 fans attended the Super Saturday Practice at the FieldHouse — double the expected attendance.

◗ 2,500 kids signed up for Bounce, the basketball-bouncing parade from Public Square to Tourney Town.

◗ 13,720,002 minutes of reading by students in 119 area schools as part of the Read to the Final Four program.

◗ 200 local college students and 40-plus business leaders participated in Connecting Cleveland.

While Cleveland drew praise for its performance as the host city, it also bene ted from great timing, since April’s tournament featured the nal two college games of Iowa standout Caitlin Clark.

e nal between Iowa and South Carolina on ABC averaged 18.7 million viewers, an 89% increase over last year’s nal between Iowa and LSU and a 285% increase over 2022. It was the

most-watched basketball game — men’s or women’s, college or pro — since 2019 and the mostwatched sporting event since 2019, excluding football or the Olympics. At its peak, 24 million people tuned in.

“It was truly an honor to host the NCAA Women’s Final Four, one of the world’s most proli c sporting events, at Rocket Mortgage FieldHouse,” said Nic Barlage, the CEO of the Cleveland Cavaliers, Rock Entertainment Group and Rocket Mortgage FieldHouse. “We are proud to have been able to utilize our platform to elevate and celebrate many of the nation’s top collegiate basketball players. We believe that the 2024 event in Cleveland will be recognized as a seminal moment in the accelerated growth and evolution of women’s basketball for years to come.”

is year marked the second

time Cleveland has hosted the Women’s Final Four, with the rst coming in 2007.

An economic impact analysis for the event, including total visitation and visitor spending, is in progress and will be released this summer, Destination Cleveland said.

“ e historic turnout and community engagement during Cleveland’s hosting of the 2024 NCAA Women’s Final Four exempli es our city’s embrace of women’s basketball,” Mid-American Conference commissioner Jon Steinbrecher said. “With record-breaking viewership and strong participation in fan events, Cleveland has set a new standard for the Final Four experience, signifying our commitment to celebrating the sport at its highest level. is achievement further highlights our team’s proven track record of delivering topnotch national events.”

A young fan dunks on a hoop inside Tourney Town at the Huntington Convention Center.

More than 20,000 fans visited Tourney Town, the free festival at the Huntington Convention Center during Women’s Final Four week.

MATT SHIFFLER

BOB PERKOSKI

Brook eld reshuf es ownership of three apartment complexes

By Stan Bullard

Brook eld, the Toronto-based investment powerhouse with ownership interests or management of about $900 billion in realty assets around the globe, is reshu ing multifamily holdings in Northeast Ohio.

Brook eld has shed the six-story Midtown Towers of Parma complex on Broadview Road and transferred — though some would say sold — both Easthaven in Beachwood and Stratford Crossings in Wadsworth to multiple ownership groups called tenant-in-common groups.

Brook eld sold Midtown Towers, a trio of six- oor buildings on Broadview Road, on May 9 to a newly-formed company, Midtown Towers LLC. Brook eld held the property under the F.C. Midview Towers name, according to Cuyahoga County property records.

e new owner of the 635-unit property is an a liate of the Aboucheri family-owned MB Realty of Aventura, Florida, according to an LLC that lists the names of Avi and Aaron Aboucheri as principals along with that of a Brook eld executive. However, at least for now, the property’s new address for tax billing purposes remains associated with a Brook eld o ce in Lakewood, New Jersey.

In a sign that it may be an allcash deal, or an existing mortgage assumed, the May 9 transactions did not show a new mortgage associated with them in Cuyahoga County land records by Monday, May 13.

A well-placed source familiar with multifamily investments, including Brook eld, said it looks like Brook eld is shedding or trimming its stake in the three properties it obtained when it bought the former Forest City Realty Trust for $11.4 billion in 2018.

“It looks like Brook eld in Cleveland, as in other places, where it bought real estate companies is shedding legacy properties that it bought over the years that don’t t its overall portfolio,” said the source, who asked not to be identi ed because he is not directly involved in the transactions.

In other words, while the properties are large apartment buildings with high occupancy rates and worth millions, the Cleveland-area properties do not t the quest of Brook eld to have rents in high-priced, growing markets such as the coasts. Although these deals are big, Brook eld continues to own at least six other area apartment buildings it acquired when it

How to Fly with Sky Quest:

bought Forest City and, in an earlier deal, the former Associated Estate Realty Corp., once based in Richmond Heights.

Do not look for sales prices for these deals, however. None is disclosed in any of the deals as all take advantage of Ohio laws that allow realty owners to shield sale prices and avoid conveyance fees by sell-

ing the companies that own the properties. In this case, they are the limited liability corporations that hold the properties.

However, in that rare ed world of big-league, institutional real estate dealings, the same source said rumor has circulated that Brook eld traded Easthaven, the 360-suite apartment complex in the exclusive Village neighborhood, for $72 million.

e sprawling property has a market value of $48 million for tax purposes. However, Cuyahoga County online property records show only that diverse groups named Easthaven 1-10 now own the properties, which date from 1994, after an April deal.

Some light is shed on the deal by other Cuyahoga County records.

ose documents show that Brookeld, which continues to manage the asset through an Easthaven LLC, secured a nearly $53 million mortgage on the properties from Berkadia Finance of Ambler, Pennsylvania, which is insured by Fannie Mae. at replaced a $48 million mortgage from Wells Fargo that had ve more years of term.

But for the changes in LLCs, the deal would otherwise look like a renance, where owners get new loans at larger values to pull taxfree money out of holdings they will continue to own and operate.

A similar deal has been consummated in Medina County, where ownership of Stratford Crossings in Wadsworth has been transferred by Brook eld to three tenant-in-common entities sharing the Stratford

Crossings name, according to Medina County land records.

e Stratford TICs secured a $35 million mortgage from M&T Bank of Baltimore, which replaced a $25 million mortgage from Wells Fargo, according to online data source CoStar. Stratford is the newest of the properties as it dates from 2007 and contains 348 suites in a complex of three-story structures.

Realty attorneys say transferred is the right term for many TIC deals as they re ect changes in the makeup of the ownership groups with major ownership interests remaining unchanged. However, others view TICs as essentially sales depending on how each deal is structured.

Potential changes to the Brookeld apartment holding in the region surfaced in 2023 with reports that Easthaven, Stratford Crossings and Cherry Tree Village in Strongsville were on the market for sale. No changes have been recorded with respect to the Strongsville property.

e Barron, Burkons and Wintermute Group of Marcus & Millichap’s Independence o ce handled the listings last year. Michael Barron of the group declined to comment on any Brook eld properties.

Brook eld did not reply to emails requesting comment on the transfers before press time.

MB Realty did not return multiple phone calls and emails about Midtown Towers by that same time. A voice-mail message at Midview’s leasing o ce also was not returned.

Easthaven Apartments in Beachwood | COSTAR

The Midview Towers complex in Parma | COSTAR

What to expect from the DEA plan to reschedule marijuana

By Jeremy Nobile

As the Associated Press recently reported, the U.S. Drug Enforcement Administration is moving to reschedule marijuana as a less dangerous drug, a historic development in the evolution of cannabis policy.

It could still be a long time, however, before this change takes place and the effects of rescheduling spread outward.

For some insight into what rescheduling could mean for the country’s blossoming legal cannabis industry, Crain’s spoke with marijuana policy expert Tom Haren, chair of the cannabis practice at Frantz Ward and a key figure behind Ohio’s Issue 2, the adult-use cannabis law approved by voters last fall.

The following has been edited for length and clarity.

The DEA is recommending the rescheduling of marijuana from Schedule I to Schedule III. At a high level, what does that mean?

This is a historic milestone. Ultimately, what it means is that the DEA and the U.S. Department of Health and Human Services, they now recognize what dozens of states and millions of Americans have known for decades, which is marijuana has medicinal value and has been changing the lives of patients across the country for years and that marijuana can be used responsibly within a regulated framework. That in and of itself, I think, represents another step in the right direction with respect to marijuana reform.

A proposal to move marijuana from Schedule I to Schedule III is an acknowledgment by the DEA that marijuana has medicinal value and a low to moderate potential for abuse. Compare that with Schedule I, which has no medicinal value and a high potential for abuse. The evidence has pretty clearly demonstrated for a long, long time that marijuana does not belong in Schedule I.

To be clear, absolutely nothing immediately changes, right?

Yes. This is just the first step. It could be a months-long, maybe even a years-long, process by the time rescheduling is ever complete. And lots can happen in that intervening period. The announcement was big news. But as I’m talking to you today, marijuana’s status under federal law is the same as it was two weeks ago. Until this process is completed, it stays a Schedule I drug.

For someone who follows marijuana policy so closely, is this move by the DEA at all surprising?

I don’t know that surprising is the right word. We knew (HHS) would make the recommendation. But it is still

“Adult-use dispensary licenses will be issued at some point this summer. None of this changes as a result of the DEA announcement.”

notable. The last time we were at this point — near the end of the Obama administration —the DEA declined to reschedule. So it was never certain it would happen.

So where do we go from here?

There’s a whole process that plays out. The DEA is going to provide an opportunity for the White House to review

the proposal and then there’s a notice and a period of opportunity for comment. Then there’s potential litigation that follows. Smart Approaches to Marijuana is already saying they’re preparing to sue the DEA. It seems unlikely this will happen quickly, though we don’t really know how long. We will have to see.

Potential litigation would probably focus on things like the process under which the proposed rule becomes finalized. And I think the DEA is going to receive a lot of public comments on its proposed rule, which will take a lot of time to evaluate.

This may go without saying, but the rescheduling proposal has no impact on the rollout of Ohio’s adult-use program, right?

That’s right. The rollout of adult-use here in Ohio will proceed as is with the (Division of Cannabis Control) working really hard to finalize its rule packages. Adult-use dispensary licenses will be issued at some point this summer. None of this changes as a result of the DEA announcement.

When rescheduling does happen, at least one big industry change could be with the taxes that companies pay, correct? I understand that effective tax rates on cannabis operators could be as high as 70% to 90% of pro ts.

Under section 280E of

the Internal Revenue Code, businesses that produce and sell Schedule I and Schedule II drugs outside of compliance with federal law can’t take standard business deductions. That restriction would not apply to cannabis companies once rescheduling is final and marijuana becomes Schedule III.

Would that 280E bene t only apply exclusively to medical marijuana companies?

It partly depends on precisely what the proposed rule from the DEA says. The language of 280E refers specifically to only Schedule I and Schedule II substances. This may be tested in the courts, but my reading is 280E would no longer apply to any state legal cannabis company if marijuana is rescheduled to Schedule III.

This will mean that cannabis companies can finally pay taxes in the same manner as every other business, and the cannabis penalty will go away. This results in more cash for company bottom lines, which puts them on a stronger financial footing, and will hopefully result in lower prices for consumers because the industry will be better able to compete with the illicit market.

Do you really think those savings get passed on to customers?

Keeping the crystal ball out in front of me ... a lack of access to traditional financing requires cannabis companies to finance

their businesses at higher interest rates in many instances. As a result, that means higher amounts paid toward debt service payments, which requires higher prices to allow for that debt service while you’re getting drilled on federal taxes.

If a cannabis company no longer has the 280E tax penalty to work out, it could mean that they have more cash on hand, which would allow them to pay o more debt than they had been, or re nance that debt potentially at lower interest rates. All of these things, hopefully, result in lower prices to consumers because, remember, every legal operator is competing with an illicit market that doesn’t pay any taxes.

You referenced nancing. Could rescheduling have any impact on banking dynamics, particularly in terms of lending to the marijuana industry?

Not directly. But it could lead to more fulsome reforms like the passage of Safer Banking or the passage of more fulsome reform legislation at the federal level. It could result in more attractive financing becoming available to cannabis businesses as their financial footing becomes better and, as a result, their risk profile decreases.

A move to Schedule III will not completely resolve the banking issue. That still would require federal legislation. But it probably does improve the landscape versus what it would look like if marijuana remains a Schedule I substance.

Tom Haren is the chair of the cannabis practice at Frantz Ward and a key gure behind Ohio’s Issue 2. | CONTRIBUTED

Nursery director Hayley Hershman tends to marijuana plants at Buckeye Relief’s Eastlake cultivation facility. | BUCKEYE RELIEF

MetroHealth grows virtual care footprint with startup

By Paige Bennett

A virtual-

rst startup co-founded by MetroHealth is helping the health system widen its virtual care footprint.

Ovatient, a virtual-centric health company born out of a partnership between MetroHealth and the Medical University of South Carolina health system, has started rolling out virtual care services built on Epic and MyChart to Ohio patients.   Virtual urgent care, same-day primary care, scheduled primary care and same-day prescription delivery services are among the company’s o erings. Since launching services about a month ago, Ovatient has provided more than 1,000 patient visits in Greater Cleveland. e company’s goal is to treat 12,000 patients in the region during its rst year of service.  e services, billed through MetroHealth, are covered by insurance or can be paid for with cash options. Ovatient plans to add behavioral health services to its portfolio later this year.

Built “by health systems for health systems,” the company says its mission is to act as an extension of its partner health systems, helping them expand their reach within their communities. e concept took shape as MetroHealth o -

cials were devising a virtual care strategy following the pandemic.

With the need for virtual care growing, they wanted a solution that would provide patients with coordinated care.

“We don’t want a third-party to come and do the care in our community because we think it’s disconnected,” said Dr. Nabil Chehade, executive vice president and chief clinical transformation ocer, at MetroHealth. “ is is why you now see all these other

University Hospitals’ new mobile OB unit brings ultrasounds to underserved areas

By Paige Bennett

With philanthropic support, University Hospitals is launching a mobile obstetrics unit to bring ultrasounds to pregnant patients in Portage and Lorain counties.

UH MacDonald Women’s Hospital has rolled out what it calls the “ rst-of-its-kind” unit, which was funded entirely through $820,000 in gifts, a spokesperson for the health system said. ose gifts also will cover three years of operational costs totaling $90,000.

and at UH Portage Medical Center Mondays, Wednesdays and Thursdays. It’s staffed with specialty sonographers, and maternal-fetal medicine experts are able to review ultrasounds remotely.

A UH spokesperson said the health system is discussing expansion plans to bring the unit to underserved areas and those with limited access to maternal fetal medicine. e purpose of the unit, according to UH, is to ensure pregnant patients receive necessary care, such as two to three ultrasounds, during their pregnancy.

The unit will travel ve days a week to perform ultrasounds for pregnant patients.

Support included a signi cant gift from the Lozick Family Foundation, along with funding from FirstEnergy Foundation, Lincoln Electric Foundation and Sherwin-Williams Foundation, according to UH.

The unit will travel five days a week to perform ultrasounds for pregnant patients. It will be in the parking lot of UH Elyria Medical Center Tuesdays and Fridays

“ e exibility and e ciency of the unit will allow our experts to care for more women during pregnancy and ll gaps in access to care,” said Dr. David Hackney, chief of maternal fetal medicine at UH Cleveland Medical Center, in a provided statement. “ roughout the country, and also in Northeast Ohio, health risks of pregnancy like high blood pressure and preterm birth have been rising. Expert prenatal care, including fetal imaging, can help address this trend.”

solution that could be employed at other similar health systems across the country, Chehade said. Partnering with the Medical University of South Carolina health system, MetroHealth created Ovatient.

“We see our very important role for Ovatient as a team of dedicated virtual providers being an extension of care teams at our customers’ (systems),” Ovatient CEO Michael Dalton said. “ ey’re not meant to replace. ey’re meant to coordinate, to complement, to really be part of that team.”

that virtual care may exacerbate the digital divide, Dalton said telehealth options like remote patient monitoring can help improve patient outcomes. He said the highest utilization of Ovatient’s services is among Medicaid patients.

third-party digital, virtual care (companies) that tried to get into that space now are getting out one after the other. ey’re not connected to a local health system.”

At the same time, Chehade said MetroHealth wanted this virtual venture to operate using physician-nurse and support sta work ows where employees are hired and trained to deliver virtual care, not doing it as a side job.

MetroHealth o cials recognized an opportunity to devise a

Dalton previously worked at MetroHealth, focusing on the areas of health policy, nance strategy and virtual care. He said Ovatient sets itself apart from other digital health companies through its integrated, inside-out approach. Rather than building programs and then guring out how to contract with payers, he said, Ovatient works by leveraging a health system’s existing contracts. e company, which has 18 employees across 12 states, is building a “virtual multi-specialty practice,” Dalton said. e core of that practice is integrated primary care, which includes behavioral health and other specialty services, such as chronic disease management.

While it is sometimes thought

“Oftentimes for our patients, it’s not that they don’t want to improve their health, it’s that it is hard to get to a health system or it’s hard to find what app am I supposed to be using or how am I being guided through this?” Dalton said. “That’s what we want to be able to create for them.”

e integrated aspect of the services can also be bene cial for MetroHealth providers and triage nurses, he said, as they are able to schedule patients with an Ovatient provider.

Ovatient is looking to grow its reach later this year as it rolls out services at the Medical University of South Carolina health system. Dalton said the company hopes to add a third partner health system and plans to bring on additional specialties conducive to the virtual care model.

e company is also exploring investments around the digital experience, such as remote patient monitoring or triage services, Dalton said.

Ovatient is a virtual- rst health startup co-founded by MetroHealth. | CONTRIBUTED

University Hospitals is launching a mobile obstetrics unit to bring ultrasounds to pregnant patients in Portage and Lorain counties, thanks to philanthropic support. | UNIVERSITY HOSPITALS PHOTOS

Welcomes

The 18th U.S. Secretary of Housing and Urban Development Marcia L. Fudge as a Partner and Chair of Public Policy.

Marcia L. Fudge

Local food truck owners navigate in ation, weather

By Alexandra Golden

With weather warming up, it means summer is around the corner — and so is food truck season. Although some food trucks stay open year-round, spring and summer are when consumers will nd the most food trucks

According to Jackie Ramey, co-owner of the Lakewood and Beachwood Truck Parks with Dan Deagan and Justin Costanzo, May is the busiest month they see at the truck parks.

“I think everybody has a little bit of cabin fever (and) they get a little glimpse of that sun and that warm weather,” Ramey said. “… We’ll go from only needing maybe three people to be working that day and then, all of the sudden, we need 15. So, it’s been really crazy how quickly things can change from being dead winter to busy, busy, busy.”

e business slows down a bit in July due to people being busy and the number of events going on, but then it peaks again in August, Ramey said.

Prepping for the busy season

Ti any Knight, co-owner and chef of Blasian Fusion LLC, which sells traditional and specialty egg rolls, said that in the summer months of 2023, the food truck did half of its events for the year in June, July and August. Knight applied for the LLC with her husband, Lloyd, in 2019 and had her rst event Juneteenth 2022.

is year marks Knight’s third summer season. She quit her fulltime job in October 2021 to pursue the food truck full-time.

Lloyd Knight, who works in the automotive industry, compared the car business to the food truck industry, noting both have “ups and downs,” including times where you “have to go after it” and times where “everything’s slow.” ose experiences helped the Knights prepare for that dynamic and process ahead

of time.

“Everything does boom more in the summer months, of course,” Lloyd Knight said. “We get extremely busy as the summer is coming to an end because I think people know their summer is coming to an end.”

With business being busy, the husband-and-wife team are strategic about their schedule and try to maintain a work-life balance so they don’t put a strain on their household, Ti any Knight said.

“We want to be consistent in how we serve food and what we serve and that the quality is always at the high expectation of our customers,”

Ti any Knight said. “So, we don’t bite more than we can chew.”

ere’s still a silver lining. Both the food truck and stand-alone restaurant, which feature Filipino cuisine, were preparing for the Cleveland Asian Festival, May 18 and 19, because both locations did brisk business from open to close during the event the past two years, San Juan said.

It’s a promising sign in a growing industry.

A fast-growing trend

San Juan started his food truck in May 2019, opened the restaurant in December 2023 and said that every year, the food truck has doubled its annual sales. He believes that success comes from word of mouth.

“We are at the mercy of the weather and the food cost.”

Tiffany Knight, co-owner and chef of Blasian Fusion LLC

Not every food truck operator has such an easy time preparing for the busy season, though.

Roger San Juan, the owner of both the Parilya food truck and its brickand-mortar location in Olmsted Falls, said it is “very di cult” to prepare due to not having much staing for either o ering.

He added that, until recently, they didn’t have a website, leveraging only Facebook and Instagram. Customers would tell him they discovered his business from family, friends or co-workers.

According to the online restaurant platform Toast, having a social media presence is key to running any food service business. By having a social media presence, the owners of food trucks can share the location of the truck to make it easier for customers to nd them.

Coming out of the pandemic, Ryan Manochi, owner of Cheesy Dave’s, which opened in 2021, said it seemed a lot more food trucks have popped up. He said he thinks maybe people were able to save up money during the pandemic to be able to purchase and start their own food truck.

Manochi’s observations aren’t just anecdotal. From 2018 to 2023, the market size of the food truck industry in the U.S. grew 13.3% per year on average, according to IBISWorld. e food truck market is expected to grow at a compound annual growth rate of 1.6% to 2028, the report adds.

At the food truck parks, Ramey said she “can’t even begin” to count how many new food trucks reach out every couple of weeks or months to be added to the schedule.

She said that due to the high cost of construction, people

2023. In 2022, food prices increased faster than any year since 1979, according to the USDA.

“I think that’s di cult for people to really understand that this isn’t a greed a ect,” Ramey said. “It’s more that our whole economy has changed.”

One of the struggles that Manochi of Cheesy Dave’s, known for its gourmet mac and cheese, has been dealing with lately is the “cost of goods steadily rising over the last two years post-pandemic.”

wanting to enter the food industry have made the food truck route a “trend” now, creating their own businesses, hours and environment.

But there are pitfalls to that approach.

Challenges of the food truck industry

Shane Vidovic, co-owner of Lakewood’s Proper Pig Smokehouse in Lakewood and its namesake food truck with Ted Dupaski, said that although he is seeing more food trucks and people “trying to live your dream,” it’s a challenging pursuit, and the jobs are fewer and far between.

Vidovic said there just aren’t the same number of opportunities as there were when he and Dupaski started their Texas-style barbecue truck in 2014.. For example, he noted, festivals and events that would host have 15 to 20 trucks, like Edgewater Live, don’t exist anymore.

“It’s just so di cult now,” Vidovic said. “I don’t know that if I was starting one now, if I could do it. …. We do have the food truck parks which are a great place to go in and get started and do that kind of thing. I just think having a good concept and great food is just so important and it’s not just as easy as putting a kitchen on a truck and rolling it out there.”

Vidovic said he “can’t stress how di cult [the food truck business] is” but people have seen it glori ed on television. Owners of a truck may make a good amount in sales in one day but, after paying sta , paying for the food and paying the event organizer, they may go home with little or no money, especially if something happens to the truck that needs to be xed, he said.

When people approach food trucks, they sometimes have “a little bit of sticker shock” when they see the prices of the items, Ramey said. When people go grocery shopping, they can see that the prices have increased and that translates to the owners of the food trucks buying products as well, Ramey said.

According to the U.S. Department of Agriculture, U.S. food prices rose by 25% from 2019 to

“We want to remain an a ordable option for individuals and families wanting to try our food and experience eating at a food truck, so we’ve done our best to resist having to raise prices on certain items, but it hasn’t been completely unavoidable,” Manochi said. “Despite that, we still receive compliments frequently about the large portion sizes in comparison to the prices.”

e Knights reiterated those sentiments about food costs with Lloyd stating that the “only trend that hurts us in the food truck industry is the rain.”

“We are at the mercy of the weather and the food cost,” Ti any Knight added. “I think we started our food truck when food costs were on the rise. So, we do have to watch with growth of our business, like our cost and adjust our prices to be able to stay a oat.”

Tracking down the trucks

Ramey mentioned that the weather in the summer season versus the winter season can be “pretty unpredictable” and can go from “0 to 60 really fast.”

“It’s kind of a balancing act, honestly,” Ramey said. “You think that you have enough prepared and you end up getting completely slammed. Or they can be the other way where you totally expect that everyone’s going to be out that day and there may be another event going on and that happens a lot in the summer, especially July.”

e hours and schedules for both the Lakewood and Beachwood Truck Parks are updated online.

ere’s also the downtown Cleveland food truck series, which will run from 11:30 a.m. to 1:30 p.m. until Sept. 30.

◗ Memorial Monday at Fort Huntington Park (W. 3rd St. and W. Lakeside Ave. )

Food Truck Tuesday at Keybank Plaza (Rockwell Ave. and W. Mall Dr.) from May to July and Public Square from August to September

◗ Walnut Wednesday at Ralph J. Perk Plaza (E. 12th St. and Chester Ave.)

Truck Stop ursday at One. Cleveland Center Plaza (E. 9th St. and St. Clair Ave.)

◗ Free Stamp Friday at Willard Park (E. 9th St. and E. Lakeside Ave.)

Other food trucks across the area can be tracked on streetfood nder.com.

Local food trucks line up at an event. Truck owners say May is typically the busiest month for food trucks. | CONTRIBUTED

MOONSHOT

Team NEO outlines lofty expectations for region’s aerospace, aviation industry

By Kim Palmer

It makes sense that Ohio — the true birthplace of aviation — is currently the largest global supplier to Airbus and Boeing, two of the world’s largest aviation manufacturers.

Suppliers in Northeast Ohio are a critical part of the global aerospace and aviation industry, and they’re now projected to hit nearly $4 billion in gross domestic product by 2030, according to a quarterly Team NEO report focused on the industry.

Aerospace and aviation GDP projections

“It has never been a better time to be in the aerospace industry. It’s extremely exciting,” said Keri Zipay, Team NEO’s director of aerospace and defense business development. “ ere are companies still getting out of recovery mode, but for the most part, the industry is almost completely back to pre-pandemic levels.”

Regional manufacturers, suppliers and service companies in the aviation industry employ more than 37,000 people at approximately 550 companies as part of the aerospace and aviation industry supply chain.

And Northeast Ohio produces everything from large-scale exterior components to silicone and coating supplies, antennas and the interior vinyl for an airplane’s ooring and walls, Zipay said. at supply chain — coupled with strong demand in new, innovative and more e cient aircraft — is projected to catapult GDP in the region’s aerospace and aviation industry to nearly $3.8 billion, up about 25% from $3 billion in 2022, according to the Team NEO report.

at is more than double the region’s projected overall GDP growth during the same period, which is expected to be 11%-12%, said Team NEO associate researcher Matt Saneda.

Projected growth by sector, the report found, is most signi cant in satellite telecommunications, which is expected to surge by more than 50% from 2022 numbers, from $806 million in GDP to $1.2 billion.

Growth estimates for the region’s largest sector — aerospace product and parts manufacturing — are expected to top 36% over those eight years. e manufacturing of instruments for navigation, measuring, electromedical and control is also expected to grow by more than 35%.

e optimistic projections for the region are due to massive demand within the industry and Northeast Ohio’s ability to handle the supply side for the industry, Saneda said.

Northeast Ohio supply chain

Material and technological advances in aviation, after years of stagnation, coupled with a 4.3% average rise expected in air service in the next 20 years, are pushing demand for new aerospace parts and products.

That increase in demand directly affects Northeast Ohio, which the Team NEO data shows produces 74% of the goods and services needed by businesses working the aerospace and aviation industry. The region also manufactures more than 98% of in-demand aircraft engine and engine parts as well as nearly 88% of auxiliary aircraft equipment, according to Lightcast data from the report.

e emerging Advanced Air Mobility (AAM) market is driving particular opportunities for the region.

“In particular, the polymer and composite manufacturers can play a role in AAM because there is a lot of need for components and those also go into eVTOL (electric aircraft able take o and land vertically and hover) and drone aircraft,” Zipay said.

ere is also a surprising amount of regional companies that supply food and beverages for commercial travel. e proximate food supply chain is attractive because it means lower shipping costs, faster delivery times and is more environmentally sustainable, Saneda said.

The space industry soars

e nascent Space Force and a more commercial-friendly NASA are fueling part of the demand from the industry.

e space industry — which includes Space Force and NASA’s Artemis program back to the moon — is predicted to grow overall from $630 billion to $1.8 trillion by 2035, according to the Team NEO report.

Space Force, the newest military wing, is looking to procure, test and put in place technology related to traveling in space, orbital debris and satellite management.

lab and plans for sustained longterm stays on the moon and eventual trip to Mars provide even more opportunities to build the technology or the parts and products needed to maintain life in space.

“If NASA can spend time doing even more technical aspects of the

work and letting industry take care of some of the other technology and streamline the processes, that’s the ideal scenario,” Zipay said. “Commercial space companies — SpaceX, Blue Origin and Sierra Nevada Corp. — have made it clear that space is not just about NASA anymore.”

“ e addition of Space Force is certainly driving growth. It’s a huge global industry projected to grow fast on an annual basis,” Ziplay said. “ ere are so many opportunities not only in shuttles to space but with satellites and orbital debris management.”

e decommissioning of the International Space Station in six years, its replacement with Star-

Aviation innovations such as NASA’s concept Subsonic Ultra Green Aircraft Research, or SUGAR, aircraft are driving growth in the industry. | NASA

Golf shares spotlight at Kaulig Companies Championship

By Joe Scalzo

is summer, the Kaulig Companies Championship at Firestone Country Club will feature plenty of ags, dog legs, links and slices.

Oh, and the golf will be pretty good, too.

In its second year as title sponsor of the PGA TOUR Champions major, Hudson-based Kaulig Cos. is leaning even heavier into the fan experience, o ering an expanded Kaulig In nity Zone and a new military appreciation platform for the event, which runs from July 10-14 at Firestone South.

“With last year being Kaulig Companies’ rst year, I think people saw a noticeable di erence in the resources (invested) and the fan amenities,” Don Padgett III, the tournament’s executive director, said in a recent interview with Crain’s Cleveland. “We continue to grow that this year. ere are going to be lots of cool places for people to hang out, have a beverage and get a bite. It’s going to be a lot of fun.”

is year’s tournament marks the 71st anniversary of professional golf at Firestone Country Club. It’s also the sixth year Firestone has hosted the PGA Tour Champions event. Kaulig replaced Bridgestone as the title sponsor last year and is signed on through 2026, which happens to be the rst year Tiger Woods would be eligible for the event.

“ e feedback we’ve gotten from them (Kaulig) is that Year One went really well and feel like this year is going really well, too,” said Padgett, who said 2023 tournament attendance increased year-over-year. “I think we feel good about moving forward with Kaulig Companies in the future. ey’re committed at least through 2026 and I think it’s been great for both partners.”

Matt Kaulig, executive chairman of Kaulig Companies, said the company is proud to be the title sponsor, calling it “more than a tournament.”

“It’s a celebration of community and philanthropy, having raised over $1.3 million for charitable organizations,” he said in a statement. “We want everyone to join us for year two in continuing the legacy of giving back at this incredible event and help us make an even bigger impact in Northeast Ohio.”

As for whether he expects Tiger to eventually return to Firestone, where he’s won eight of his 16 starts, Padgett said, “We feel good about it. Obviously, he’s had a great stretch run here and it would be great to see Tiger back at Firestone. He de nitely likes this place for sure.”

is year’s tournament is being marketed as “One ticket, two experiences,” emphasizing the fact that you don’t have to be a golf fan to enjoy the event.

To that end, here are ve things to note.

Expanded concerts

Live music has become increas-

ingly important at the tournament and this year is no di erent, with the tournament o ering concerts on each of its rst three days: Spotlight on Charity Concert, Thursday, July 11: Area artists such as Marc Lee Shannon, Benny Lava and e Guavas and Anya Van Rose will perform.

◗ Military Appreciation Concert, Friday, July 12: Country music singer Kameron Marlowe, a contestant on Season 15 of NBC’s e Voice, will headline the event, which also features country singers Tim Dugger and Jocko Deal.

The Vindys, Saturday, July 13: e Youngstown-based band, which is touring with Pat Benatar this summer, will be back for the third straight year. Saturday’s concert will also feature e Pallay Boys — Colt and Jagger Pallay are former Hudson High School football players who moved to Nashville to start a music career — as well as Pittsburgh-based band e Commonheart.

“We’re extending the music to another night just because people really enjoyed it, sticking around in the late afternoon and early

evening and enjoying the summertime here in Ohio,” Padgett said. “It was fun to have (golfer) John Daly around for some of the performances (last year) and, you never know, we might see him coming out this year as well.”

Military appreciation

While military appreciation isn’t new at Firestone — active military, veterans and rst responders as well as a guest can attend the event for free after registering at the tournament’s website — this year’s tournament expands those o erings with “Folds of Honor Friday.”

Folds of Honor is a nonpro t organization that provides educational scholarships to spouses and children of America’s fallen or disabled service members and rst responders.

e tournament partnership includes:

◗ irteen academic scholarships, totaling at least $65,000, to local children and spouses of fallen or disabled military and rst responders.

e pin ag at the 13th hole will be a U.S. ag that will be attended by a member of the U.S. military for the duration of the tournament.

◗ e Ceremonial First Tee Shot, which will feature a member of the U.S. military hitting the opening tee shot on Friday morning after the playing of the national anthem at 9:30 a.m.

“It’s the only sport that we know of in the U.S. that doesn’t play the national anthem before you start, so I was like, ‘Great, we’re going to partner with you (Folds of Honor) and change that,’” Padgett said. “We’ve always done things for the military and veterans and rst responders, but it will be a lot more visible this year.”

Food options and more

In addition to the aforementioned links (brats from Hofbräuhaus) and slices (Scott’s Fire & Ice Wood Fired Pizza), the tournament will include Mexican street cuisine from Barra De Taco as well as o erings from Just Wing’n It,

Moonstone Co ee Works, Pav’s Creamery and more.

And if you eat too much, well, you can always walk over to wherever John Daly is playing and remind yourself that he’s a professional athlete.

On a related note, two of this year’s partners are Horse Soldier Bourbon Whiskey and the Cigar Den by Hammer & Nails. And for pet lovers, One of a Kind Pet Rescue will o er “ e Ru ,” a dog petting area with adoptable pets. ( is ful lls all the pun obligations for the story’s rst sentence.)

Charity

Last summer’s Kaulig Companies Championship and Ambassador of Golf event raised $1,233,750 for Northeast Ohio charities — the largest annual charitable total ever generated from professional golf events at Firestone.

“It’s really just a testament to the community and people supporting us,” Padgett said. “Kaulig Companies got a lot of their partners involved, which was awesome, and we’re looking forward to continuing to grow that this year.”

Professional golf events at Firestone have raised more than $32 million for charity since 1984. Kaulig Cos. executive chairman Matt Kaulig and CEO/president Tim Clepper have said they’d like the event to raise $2 million each year for charity and the Ambassador of Golf event plays a big role in that.

Former Colts and Broncos quarterback Peyton Manning will be honored with the 2024 Ambassador of Golf Award on July 11 at House 330 in Akron.

One of the tournament’s charity partners is Hearts for Music, which provides music opportunities for children with special needs. Several of those kids are going to learn to play “Rocky Top” — the college ght song of Manning’s alma mater, the University of Tennessee — and will play that song for Manning at the event.

“We like to put faces to the impact of the charity dollars, rather than just saying, ‘We gave them X,’” Padgett said. “We’re looking to pull at the heartstrings of the people there to continue to raise dollars.

Golf

While the tournament doesn’t have quite the same sizzle as when it was a PGA Tour event, the golfers still take center stage.

Defending champion Steve Stricker will look for his third win on Firestone South in the last four years. Ernie Els, Fred Couples, John Daly and many other famous golfers are also expected to compete.

“Golf is really one of the few sports where you can continue to shine for a long time in your career,” Padgett said. “And if you look at the list of winners over the years at Firestone, the cream always seem to rise to the top.”

help create more jobs and build stronger communities.

NORTHEAST OHIO PUBLIC COMPANIES CRAIN’S LIST

1 EATON

2

3

4

1000 Eaton Blvd., Beachwood 44122 440-523-5000/eaton.com

6300 Wilson Mills Road, May eld Village 44143 800-776-4737/progressive.com

101 W. Prospect Ave., Cleveland 44115 216-566-2000/sherwin-williams.com

HANNIFIN CORP

6035 Parkland Blvd., May eld Heights 44124 216-896-3000/parker.com

5 TRANSDIGM GROUP INC.

1301 E. Ninth St., Suite 3000, Cleveland 44114 216-706-2960/transdigm.com

6 FIRSTENERGY CORP

76 S. Main St., Akron 44308 800-736-3402/ rstenergycorp.com

7 STERIS

5960 Heisley Road, Mentor 44060 440-354-2600/steris.com

8 AVERY DENNISON CORP

9

8080 Norton Parkway, Mentor 44060 440-534-6000/averydennison.com

28601 Clemens Road, Westlake 44145 440-892-1580/nordson.com

127 Public Square, Cleveland 44114 216-689-6300/key.com

22801 St. Clair Ave., Euclid 44117 216-481-8100/lincolnelectric.com

More than dental.

Delta Dental is more than a great dental benefits company. We’re excited to now o er vision benefits, exclusive to Delta Dental groups.

NORTHEAST OHIO PUBLIC COMPANIES CRAIN’S LIST

6070 Parkland Blvd., May eld Heights 44124 216-486-4200/materion.com

3300 Enterprise Parkway, Suite 300, Beachwood 44122

877-622-4782/masterbrand.com

One Cedar Point Drive, Sandusky 44870 419-626-0830/cedarfair.com

ARHAUS INC.

51 E. Hines Hill Road, Boston Heights 44236 440-439-7700/arhaus.com

STERLING CHECK CORP

6150 Oak Tree Blvd., Suite 490, Independence 44131 800-853-3228/sterlingcheck.com

NIXDORF INC.

350 Orchard Ave. NE, North Canton 44720 330-490-4000/dieboldnixdorf.com

5875 Landerbrook Drive, Suite 300, May eld Heights 44124 440-449-9600/hyster-yale.com

1835 Dueber Ave. SW, Canton 44706 330-471-7000/timkensteel.com

22901 Millcreek Blvd., Suite 650, Highland Hills 44122 216-292-3800/olysteel.com

982 Keynote Circle, Brooklyn Heights 44131 216-676-2000/graftech.com

6065 Parkland Blvd., Cleveland 44124 440-947-2000/pkoh.com

BANCSHARES INC. 100

Tony White: From Buckeye basketball captain to Thompson

Hine managing partner

In an industry rst, ompson Hine recently transitioned its leadership from Deborah Read, one of the rst women managing partners at a large law rm, to Tony White, one of a handful of African Americans occupying the top role at an Am Law 200 rm and one of about a dozen individuals to have held the position at any point. Read has served as managing partner since 2012.

“I am honored to be entrusted with the rm’s leadership at an exciting time,” White said. “I look forward to advancing the positive momentum Debbie initiated, and I am committed to positioning the rm for strategic growth and further leveraging our robust innovation foundation to continue transforming how we deliver services to provide the maximum value to our clients and help them achieve their goals.”

Founded in Cleveland and known for its innovation in the delivery of legal services, Thompson Hine advises businesses across the country and globally, but has strong roots in Northeast Ohio. The firm takes pride in its work for both longstanding and newly established companies across the region, its significant role in facilitating development and investment in communities and nonprofits, and its strong support of local industry, fine arts and culture.

From facilitating the construction of the region’s most important sports, health and hospitality, and public works projects to representing well-known brands in litigation, leading corporate transactions to driving some of Ohio’s largest and most thoughtful mixed-use real estate developments, ompson Hine brings a trademark blend of legacy, innovative strategy, and consistency

to helping its clients and Ohio’s communities ourish.

White, an experienced leader, is enthusiastic about taking the reins and helping the rm continue to innovate and capitalize on expanding growth opportunities that exist in Northeast Ohio and throughout the state, demonstrated by the presence and investments of prominent national companies.

“Tony’s innate leadership abilities and deep commitment to our rm and its clients make him an excellent choice for managing partner,” Read said. “For over a decade, he has served in rmwide leadership roles and helped guide our growth. Tony began developing his leadership skills early — when he was selected as captain of e Ohio State Buckeyes basketball team. ere is a recognized correlation between sports and business leadership success, and Tony’s achievements prove this. He is a seasoned leader with the vision and experience to guide the rm toward a successful future. I am con dent ompson Hine will bene t greatly from Tony’s charisma, commitment, and his focus on innovation as a member of the leadership team that moved this initiative forward.”

Read will continue to focus on the rm’s innovation e orts and her practice as a

transactional tax lawyer advising leading foundations and nonpro t entities, including e Rock & Roll Hall of Fame and Museum, the Cleveland Foundation, the Cleveland Orchestra, and many operating charities, corporate and family foundations and other nonpro t organizations.

ompson Hine has earned national acclaim for its service and innovation, including being ranked number one in the category, “Most innovative North American law rms: New working models” by the Financial Times and named one of seven rms shortlisted for e American Lawyer’s inaugural Legal Services Innovation Award. e rm also has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery model, which drives accuracy and predictability.

NORTHEAST

OHIO PUBLIC COMPANIES CRAIN’S LIST

614 E. Lincoln Way, Minerva 44657 330-868-7701/consumers.bank

600 E. Main St., Andover 44003 844-259-5473/andover.bank

200 Park Ave., Suite 400, Cleveland 44122 216-304-6556/malachiteinnovations.com

parties are negotiating contracts to complete the transaction.

Watts said several potential alternative sites for e Garden have surfaced, though she declined to be speci c.

“Our whole team is on board to continue with this concept,” Watts said. “We’ve gained additional support from other individuals as we went through this process. ere is a growing sense this is an enormous opportunity for the region.”

e Garden is designed to provide education, research and locations for farming in buildings, which is termed “controlled environment agriculture,” or CEA. Watts said in a letter she posted on the Center for Food Innovation’s website that the concept could provide an opportunity to transform the county’s economy.

“It is more of an investment than a transaction,” said Watts, who also is an instructor in entrepreneurship at Loyola University New Orleans, “I always tell my students to have a plan B, and we have one. We appreciated the opportunity to bid on Midway Mall.”

Emerick Corsi, a former Forest City Realty Trust Inc. executive who now operates the EDC Advisors consulting and development rm in Orange Village, is among those advocating for e Garden. He said in a phone interview that

few people realized there are prospective business tenants for space in e Garden who already produce food in controlled environments or buildings.

“ ere are no insects indoors, so they don’t need pesticides like outdoors,” Corsi said. “ ere is more productivity because growing conditions are controlled, and operators may be able to get an extra season for crops. ese businesses don’t need farmhands.

ey need people trained in agricultural engineering who can help

operate the systems and grow more food.”

Although many plan backers are located in Lorain County, Corsi said the group has not decided to limit its geography to the county. He said it is more a matter of nding a 40-to-50-acre site for the operation, in either an outlying location or a clean urban site.

However, that is no small undertaking, as real estate experts say such large sites generally are farther out of town than in the past, largely thanks to the boom of

building huge warehouses for e-commerce and other logistics uses.

One letter of support that Watts shared on her website was from  Chieri Kubota, a professor at Ohio State University who is the director of the Ohio Controlled Agriculture Center in Columbus.

“I am keenly aware of the critical role of CEA in providing high-quality, nutritional food in a sustainable manner,” Kubota said in the letter. “ e Garden  could be an important addition to the work

“We’ve gained additional support from other individuals as we went through this process. There is a growing sense this is an enormous opportunity for the region.”

Bara Watts, executive director of The Center for Food Innovation

we are doing providing resources for real-world research, student internships and training for the ownership and support of the growth of a CEA industry in Ohio.” e center Kubota directs provides services for the evolving controlled environment agriculture business to build on Ohio State’s traditional training in horticulture and greenhouse operations. She did not return a call by 4 p.m. Friday, May 10.

Watts said her nonpro t has a plan to nance e Garden. She noted it could have direct economic bene ts in terms of the jobs that it could produce. An operation of the scope Midway Mall afforded would have elded as many as 700 jobs, the center estimated.

The soup-to-nuts concept for a complex devoted to fostering a new vertical farming industry in Lorain County will be adjusted to t a new site when backers nd one. | ALBERT KAHN ASSOCIATES VIA THE LORAIN COUNTY PORT AUTHORITY

facing a projected $40 million budget shortfall.

“ e biggest decreases are right in our backyard,” Stimple said during CSU’s nancial a airs committee meeting on ursday, May 9. “ ey’re impacting the school districts whose socioeconomic classes are lower and have a higher racial diversity.

“ is is what’s happening to the students that typically end up coming to Cleveland State.”

Any student who wants to be eligible for federal student aid must ll out the FAFSA, which serves as the gateway to loans, work-study and, most importantly, Pell grants, “which is the best money you can get,” Stimple said. Congress passed the FAFSA Simpli cation Act in 2020, which simpli ed the application (the number of questions was reduced from 103 to 30) and increased the number of students eligible for Pell grants.

e problem was that the U.S. Department of Education never received any additional resources or funding from Congress, leading to the delayed rollout and subsequent problems. Schools didn’t begin receiving Institutional Student Information Records (ISIRs) until midMarch and close to 40% of those records were “unactionable” due to errors and missing information, Stimple said. Students weren’t able to make any corrections until April.

Making matters worse, the botched rollout comes at a time when many colleges and universities — particularly in Northeast Ohio — are facing enrollment declines and other nancial headwinds as students question the value of higher education.

“ is is not helping with that story,” Stimple said.

Last summer, Cleveland State projected it would enroll 13,658 students in fall 2024 — 510 fewer than the actual enrollment in fall 2023 — but has since revised that projection down to 13,447. at revised number assumed there would be a FAFSA-related decline, “but it was not built with the level of how bad it was,” Stimple said. “So, that number is probably a high, strong number. But I don’t think it’s completely out of reality at this point.”

e good news is that CSU has “probably hit rock bottom on the FAFSA issues” Stimple said. e school recently sent out another batch of awards and has moved its deposit dates to June 1, so Stimple is hopeful that its May admissions data looks more like a typical April. CSU has placed a speci c emphasis on reaching students in the College Now of Greater Cleveland program, she said.

Baldwin Wallace has faced similar FAFSA issues, which is why it moved its later priority deposit deadline to June 15. BW typically has commitments from about 80% of its incoming class by May 1.

“ is year, May 1 is more like where we would nd ourselves around April 1,” Scott Schulz, BW’s VP for enrollment management, wrote in an email to Crain’s. “Although our deposits are currently trailing previous years due to the

FAFSA delays, our applications are up 13 percent and our admits are up almost 7 percent over last year, with campus visits among admitted students also outpacing last year’s records.”

BW’s main focus is on ensuring its FAFSA lers catch up to last year, using a coordinated approach that includes social media, email, texting, postcards and phoning campaigns, Schultz said.

“If 16 percent fewer students le FAFSA this year when all is said and done, it could mean more than 10,000 Ohio students who would usually attend college decide not to attend college this fall,” he said. “ at would not only adversely impact the future job prospects of thousands of Ohioans but also have long-term economic repercussions for our state.”

Case Western Reserve University uses the CSS Pro le in addition to the FAFSA, and was consequently able to provide “very good” estimated nancial aid awards on its normal schedule, said Rick Bischo , Case’s VP of enrollment management.

Case has started receiving FAFSAs, allowing the school to conrm nancial aid awards for most of its committed students and ones with deposit extensions (through May 15).

“Our expectations are that once May 15th passes our enrollment commitments will be very similar to the last few years,” Bischo said via email.

John Carroll University found a creative workaround following the announcement of FAFSA delays on Feb. 1. e school announced it would issue “Estimated Cost of Attendance” (ECA) packages so families could understand the out-ofpocket cost to attend prior to the FAFSA being corrected. JCU asked families to submit their Student Aid Index (SAI) information or to ll out a nancial aid calculator. JCU then began sending out ECA packages on Feb. 15 with guaranteed institutional aid to families prior to receiving FAFSA information.

More than 500 families took advantage of this o er, said Carolyn Noll Sorg, JCU’s VP for enrollment management, and the approach was highlighted by the New York Times in a story on Feb. 8.

JCU sent out its rst round ofnancial aid packages, which included FAFSA information, on April 10. Prior to May 1, it issuednancial aid packages to all admitted students, including FAFSA lers and FAFSA non- lers. It also pushed its deposit deadline to May 15 from May 1.

JCU has seen a 10% decrease in FAFSA lers, but applications are up 12% year-over-year and the school is tracking well ahead in campus visits this year, both overall and with its admitted student pool.

“Making a college decision is stressful even in the best of times,” Noll Sorg wrote in an email. “ is year, families have expressed their increased anxiety to us given the FAFSA delays. Our Jesuit mission of service compelled us to o er proactive solutions to help ease their concern, whether they ultimately choose John Carroll or not. We believe this response is part of the reason why we are on track to enroll a larger rst-year class than last year.”

Noncompete ban could impact health systems, physicians

Paige Bennett

Uncertainty surrounds the Federal Trade Commission’s recent ban on most noncompete employment agreements, but experts say the rule could have sweeping effects on health care.

e rule bars noncompete clauses in employment contracts except for existing agreements with senior executives. While it’s set to take e ect 120 days after its publication in the Federal Register on April 30, the rule is already being challenged in federal court.

Between 37% and 45% of physicians are bound by noncompete agreements, according to the American Medical Association. It’s common for hospitals and health systems to use noncompete clauses to prevent departing employees from practicing in their geographic area for a certain period of time. Proponents say the agreements help health systems protect their investments, while opponents argue they limit workers’ ability to negotiate better contracts.

“ is is all about economic power,” said J.B. Silvers, interim codean and professor of banking and nance at Case Western Reserve University’s Weatherhead School of Management and School of Medicine. “ is is all about who gets the cash and who controls the ow of money.”

If the rule stands, hospitals and health systems will see more physicians forming independent groups, negotiating for better contracts or taking their services to other competitors, Silvers said.

e noncompete ban would force health systems to reassess their workforce and the competitive environment. It could also potentially result in more collaborations, said omas Campanella, health care executive-in-residence at Baldwin Wallace University.

e move could increase staing challenges for nonpro t hospitals in an already di cult health care environment, Fitch Ratings analysts wrote. It could improve the labor supply and enhance the labor and physician recruiting pool, but it could also put more

pressure on wages or lead to operating volatility if an increase in sta turnover occurred, Fitch says.   ough some in the industry argue that health care organizations registered as nonpro ts fall out of the FTC’s scope, the rule says “these organizations are not categorically beyond the Commission’s jurisdiction.”

e FTC estimates the ban will reduce spending on physician services by $74 billion to $194 billion over the next decade and says it will lead to higher worker earnings and new business formation.

Meanwhile, the Ohio Hospital Association called the rule “a regulatory overreach and bad policy.”

“ e FTC’s rule will adversely impact hospitals across Ohio, including those in rural areas, which incur signi cant expense to recruit physicians and other caregivers to their communities and invest heavily to maintain their practices in those communities,” the association said in a statement. “ e rule will impair hospitals’ ability to keep health care providers in their communities, further exacerbating their workforce challenges and jeopardizing access to care.”

e Ohio State Medical Association (OSMA), in a letter submitted to the FTC during the initial comment period in 2023, said it appreciated the agency’s attempt to address fairness in noncompete clauses but could not support the rule in its current form.

“ e rule as promulgated leaves a lot of legal ambiguity as to whether certain agreements are even subject to the FTC’s jurisdiction, and thus whether those agreements would be a ected by the rule,” OSMA said.   e association, which represents Ohio physicians, medical residents and medical students, said many nonpro t hospitals and health systems are arguably not subject to the FTC’s rule. It also noted uncertainty over the FTC’s authority as private equity has absorbed large portions of the health care space in recent years. It encouraged the FTC to engage with physician organizations to address these issues.

OSMA CEO Todd Baker said in an email that the association’s position is the same after the nal rule and that he had no additional comments at this time.

Silvers said the broad question surrounding the ban is whether it will lead to a rise in health care costs, but the answer is up for debate. On one hand, hospitals could argue that without the ability to lock in a stable group of providers over a period of time, it would be more di cult to make necessary investments and provide services. On the other hand, physicians could say having independence gives them the freedom to do more for patients than if they were stuck with a system or allows them to create new services outside a hospital.

“I don’t think it’s an easy openand-shut case,” Silvers said. “To the extent that it’s imbalanced toward the employers away from the employees, it does create an economic question of exploitation.”

With business groups ling lawsuits over the ban, Campanella said there are many unknowns regarding how and when it will play out. He envisions the rule leading to more discussion statewide on noncompetes.

“What I see happening is it might create more energy at the state level,” he said. “ ere’s a number of states already that banned noncompetes within their state jurisdiction. And I think just the overall discussion, the lobbying that’s occurring, that you could have certain states, even potentially Ohio, decide that noncompetes are not allowed.”

Four states (California, North Dakota, Minnesota and Oklahoma) have full bans on noncompetes, while a plethora of states have some restrictions on them.  As for Ohio, there’s at least one option under consideration.

In 2023, Ohio Capital Journal reported that Republican state Sen. Terry Johnson proposed legislation that would limit noncompetes in health care to six months and a radius of 15 miles for certain health care professionals.

Between 37% and 45% of physicians are bound by noncompete agreements, according to the American Medical Association. | SCOTT HOUSLEY

said. “ e Chamber will sue the FTC to block this unnecessary and unlawful rule and put other agencies on notice that such overreach will not go unchecked.”

With the FTC’s proposed ban becoming e ective 120 days past the ruling — which should be on or around Aug. 21 — the prevailing wisdom is to see what shakes out over the next couple of months.

“ e FTC’s rule has an a rmative requirement to inform employees subject to these agreements, assuming it goes into e ect, informing them that these provisions are unenforceable,” said Nancy Barnes, head of the labor and employment group at ompson Hine. “Some people are ipping out about getting those notices out. But our advice to our clients, in general, has been to hold on a second, take a beat, and let’s see what happens with these court proceedings.”

FTC’s motivation

e FTC issued its rule banning the use of noncompetes on April 23. e purpose, the agency says, is to protect the “fundamental freedom of workers to change jobs.”

“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” said FTC Chair Lina Khan in a statement. “ e FTC’s nal rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business or bring a new idea to market.”

e FTC, which estimates that 18% of American workers are subject to noncompetes, asserts that a noncompete ban could have many positive e ects on the workforce and economy.

The agency predicts that the ban could result in the formation of new businesses and patents, increase earnings for workers and even lower health care costs.

e are some exceptions to the

FTC’s proposed rule. For example, noncompetes applying to senior executives — which it denes as employees who make at least $151,164 annually and who are also in policymaking positions — could remain in place, though employers would be prohibited from entering into or enforcing new noncompetes with those executives.

But in cases where narrow carve-outs like that don’t apply, employers will have to replace noncompetes with softer alternatives such as non-solicitation, con dentiality or non-disclosure agreements.

While it varies from company to company, noncompetes do tend to be most common with higher-level executives and salespeople.

State courts routinely review cases where noncompete agreements may be deemed unlawful when applied to lower-level workers. States such as California are prohibitively strict on noncompetes, while more businessfriendly states (including Ohio) tend to be more exible or “reasonable,” Baisden said.

Employers often put these in place anyway in hopes the provisions won’t be challenged as they can have a chilling e ect on someone pursuing work elsewhere all the same.

is ties into the notion in some circles that a ban could be a positive for workers.

While most companies are unlikely to see any positive bene t to eliminating noncompetes, it could be useful to early-stage companies jockeying for talent. ink of a software developer who wants to attract a seasoned industry vet from a large company that supports their mission. at executive may be subject to a noncompete designed to prevent them from taking ideas or information developed with their current company to a competitor. is protects the established company at the expense of preventing a new competitor from ourishing.

“I do think where (a ban) could be bene cial is startups and less successful companies who are looking to bring in experienced talent to help them be more competitive,” Baisden said.

‘Moving into a noncompete world’

While legal counselors seem to agree that there’s no immediate need for employers using noncompetes to make sweeping changes, Barnes said the ruling at this stage is nonetheless a “wakeup call to say let’s take a look at our templates.”

ere may be cases where a noncompete is not actually necessary now. Maybe a nonsolicitation agreement would su ce. And how strong are any of those agreements in terms of protecting a company and its information?

“I think there is a real opportunity not to take a look at some of these agreements — some companies have had templates in place for ve or 10 years — and think, who are we having sign these?” Barnes said. “Maybe there are ways to tweak language to bring enforcement of provisions that are not noncompete provisions in line with the objectives you’re trying to achieve.”

Baisden, who describes the FTC as overstepping its authority with its ruling — noncompetes tend to be a “creature” of state laws or statutes with no real umbrella federal law that applies to them, he said — is skeptical the ban goes into e ect as written.

“ is is somebody at the FTC trying to exercise authority well beyond what I think most people would say is appropriate,” he said.

While that position is not a surprise coming from a corporate attorney, courts will indeed decide whether this action is in the FTC’s purview.

It’s possible that a ban goes into e ect in some fashion that looks a little di erent than the FTC’s rule today.

For example, there may be a scenario where a ban is put in place going forward of its e ective date but doesn’t apply to any agreements that have already been signed.

“I don’t think the rule will wholesale be completely overruled, but I don’t think it will go into e ect as written,” Barnes suggests.

Rob Gilmore, chair of the labor and employment practice at

Kohrman Jackson & Krantz, reinforced the idea that it may not be necessary to make moves now, but emphasized that there should be some planning underway. Companies should take stock of where noncompetes are in place and whether they truly serve the purpose a company wants.

“I do think people should be getting going thinking about this either way,” he said. “I wouldn’t just wait until August and hope a

court does something.”

He added, “We are moving into a noncompete world with the FTC and also the (National Labor Relations Board). But no matter what happens with the FTC, companies may want to start thinking about what is the best way to protect their legitimate business interests. Some may move either way toward non-solicitations and confidentiality agreements and less noncompetes.”

PEOPLE ON THE MOVE

ARCHITECTURE

Desmone

ENGINEERING / CONSULTING

KS Associates, Inc.

LAW

Gallagher Sharp, LLP

LEGAL

Benesch

TECHNOLOGY

EOX Vantage

Geoff Aiken, AIA, LEED AP has been named Regional Vice President of Desmone’s Cleveland of ce. He brings stellar leadership, architectural expertise, and market insight to the full service architecture and interior design rm. Aiken’s vast experience and strategic mindset aids in steering the company to new heights. As Desmone looks toward the future, Aiken’s appointment signals a commitment to growth, innovation, and excellence in serving clients across the Cleveland region.

BANKING

Impressia Bank

Impressia Bank has appointed Anne Richie to its Board of Advisors. In this role, Anne will provide leadership and guidance as the bank expands its mission to advance women in business by leveling the gender gap in funding. Anne, a former banker with expertise in capital structuring, has a passion for supporting women-owned businesses. She is the founder and Managing Director of The Mezzanine Fund, providing exible debt capital to support the over-performance of overlooked businesses.

ENGINEERING / CONSULTING

Chagrin Valley Engineering, Ltd.

CVE is proud to welcome Myron Pakush as the Director of Strategic Operations. Myron brings over three decades of invaluable experience in executive leadership, and his arrival marks a signi cant milestone for CVE as we continue to expand our industry presence throughout the state of Ohio. Myron’s strategic leadership will be instrumental in driving these engineering initiatives, and we are con dent that his knowledge and contributions will play a pivotal role in shaping CVE’s future success.

KS Associates, Inc. announces that Scott A. Horan, P.E., P.S., joins the rm as Associate Director of Surveying Services. KS is an engineering rm that provides land surveying, right-of-way plan development, and LiDAR/3D laser scanning services. Horan is a dual-licensed professional with 16 years of surveying and engineering experience. He is responsible for client relationship management, project management, quality control, and integrating new survey technology into KS’s surveying practice.

INSURANCE

Armada Risk Partners

Gallagher Sharp LLP is pleased to welcome Linda M. Italiano Gorczynski as a Partner at the rm’s Cleveland of ce. Linda is a member of the rm’s General Litigation and Business and Employment Practice Groups where she defends corporations and individuals against claims of personal injury, property damage, and wrongful death.  Her experience includes employment practices liability, long-term care, transportation, advocating for persons with disabilities, and public sector litigation.

LAW

Hahn Loeser & Parks

Matthew David Ridings has joined Benesch as a Partner in the rm’s Litigation Practice Group. Matt’s practice encompasses government enforcement, internal investigations, and compliance matters, with a speci c emphasis on international antitrust, product distribution, and anti-corruption issues. He has successfully tried numerous criminal and civil trials involving allegations of antitrust violations, corruption, and other competition-related matters.

Benesch

Armada Risk Partners is excited to introduce Tricia Lucas as an integral addition to our sales team. Prior to joining Armada Risk Partner’s sales team, Tricia spent seven years in technology and the cybersecurity sector giving her a unique perspective on the critical importance of risk management. Tricia understands the complexity of cybersecurity threats and business risks, and this specialized knowledge will be extremely valuable to Armada’s clients. Welcome Tricia! We Protect. You Grow.

LAW

Calfee, Halter & Griswold LLP

The Firm welcomed Associate Katherine R. Ham to its Trusts & Estates Practice. Ham counsels executors and trustees on duciary duties, drafts and administers sophisticated estate planning instruments to achieve a client’s wealth transfer goals, and prepares federal estate and gift tax returns. Admitted to practice law in both Ohio and Florida, Ham will work closely with the Firm’s Cleveland and Naples of ces. Ham earned a J.D. from Case Western Reserve and a B.A. from Malone University.

Patrick Manning has joined Benesch as an Associate in the rm’s Real Estate Practice Group. Patrick specializes in retail, commercial, and various other leasing transactions. With experience in both law rms and in-house roles for a national commercial retail developer, Patrick excels in negotiating leases, drafting agreements, and handling related documentation.

PROMOTE.

Matthew G. Mrazek has joined Benesch as an Associate in the rm’s Real Estate Practice Group. Matt focuses his practice on representing clients in a wide range of complex commercial real estate transactions. Matt has signi cant experience representing clients on standalone and portfolio acquisitions and dispositions, along with related borrower-side nancing and re nancing.

Nicholas P. Zalany practices as Senior Counsel with Calfee’s Intellectual Property group where he serves clients on high-stakes patent, trademark, trade secret, unfair competition, and copyright litigation cases. He brings a global perspective to his practice, having represented international entities in multiple cases and speaking several foreign languages, including French, Hungarian, and German.

EOX Vantage, a leading SaaS solutions provider, welcomes Isaac Rice to its Playhouse Square of ce as a Solutions Sales Account Manager. He previously worked at Hyland Software as an Account Executive. In his new role, he will focus on growing the company’s customer base and expanding the existing customers’ solutions to gain additional value with EOX Vantage. Isaac graduated from the University of Kentucky with a management and marketing degree with a data analytics minor.

Van Auken Akins Architects is now DVA Architecture after 32 years. The re-brand was prompted by new President Christopher Dewey AIA, LEED AP, who assumed leadership in 2023. DVA Architecture spearheaded the new Greater Cleveland Foodbank Resource Center project, the new Susie’s Bear Hollow at Cleveland Metroparks Zoo, and the new Rocket Mortgage Fieldhouse Team Shop in collaboration with Populous and Snarkitecture. They are also working on the current Progressive Field renovations with Manica.

Mrazek

Manning LEGAL

CHARTING PROGRESS: The Business Case for DEI

Join us May 29 for a Power Breakfast event exploring the economic and strategic imperatives driving DEI efforts within corporations and institutions. Discover the case for prioritizing DEI initiatives, the role of diverse and inclusive workplaces in fostering innovation and organizational success, methods for assessing initiative effectiveness and strategies for navigating backlash. Enjoy a hot breakfast buffet, exclusive networking opportunities and a fireside chat moderated by our newsroom, offering candid discussions on key DEI issues.

(216) 771-5388 or missy.chambless@crain.com