Crain's Cleveland Business by Crain's Cleveland Business

NASCAR: Kaulig Racing makes full-time jump to Cup Series. PAGE 3

LESSON LEARNED The pandemic put a premium on flexibility in education. PAGE 8

CRAINSCLEVELAND.COM I JUNE 21, 2021

A runner passes an empty building that’s earmarked for redevelopment on Columbus Road in the Flats.

ON THE MOVE Big changes loom for historic riverfront district in the Flats `BY MICHELLE JARBOE Most of the peninsula’s western edge is in play, with the Merwin Avenue home of seafood purveyor Catanese Classics up for sale and the idled flour mill next door expected to hit the market soon. Along nearby Columbus Road, developers are plotting residential projects. See FLATS on Page 21

It’s triage time in local hotel biz Owners, operators begin to pick their shots with properties BY STAN BULLARD

Hotel owners and operators are starting to pick their shots as the COVID vaccine era begins to send leisure, if not yet business, customers their way again. That’s the picture that is starting to emerge from recent property offerings, foreclosures and sales. Picking such play-for-keeps shots

was impossible when the pandemic gripped the nation and region starting in March 2020. Case in point: New York Citybased Taconic Capital Advisors, a private equity operator that has in its portfolio the Courtyard By Marriott and TownePlace Suites on adjoining parcels on Engle Road in Middleburg Heights, is offering both for sale at an online Ten-X Capital auction on July 19. Both have minimal asking prices, typical for auctions: $1.1 million for the 94-suite TownePlace property, and $2.7 million for the Courtyard. The properties were acquired

NEWSPAPER

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MICHELLE JARBOE/CRAIN’S CLEVELAND BUSINESS

AS BICYCLE LANES, PEDESTRIAN PATHS and parks spread across the Cuyahoga River valley, developers are following. On the Columbus Road Peninsula in the Flats, just outside downtown Cleveland, real estate listings and property sales portend change for a historic district where motley industrial buildings mingle with rowing facilities, strip clubs and watering holes.

Ohio employment law joins ‘Wild West’ HB 352 creates massive changes, but impact on workers, employers, others is uncertain Two Middleburg Heights hotels, the Courtyard and TownePlace Suites (at center), are scheduled for an online auction next month. The auction reflects how the lodging market is evolving, with or without foreclosure proceedings. | COSTAR

in 2014 by the current ownership at prices of $6.8 million for the TownePlace and $14 million for the Courtyard. See HOTELS on Page 22

THE

LAND SCAPE

BY JEREMY NOBILE

Lawyers say House Bill 352 — or the Employment Law Uniformity Act (ELUA) — creates some of the biggest changes to Ohio employment law they’ve ever seen, though what impact it has on workers, their employers and those representing them in discrimination suits should become clearer over time. Any uncertainties are due to the novelty of this new statutory scheme.

“We’re sort of in the Wild West right now,” said Brian Spitz, founder and managing partner of The Spitz Law Firm, a plaintiff ’s firm spanning Ohio and based in Beachwood. Spitz estimates his firm represents roughly 20% of plaintiffs in Ohio in claims against employers related to wrongful termination, discrimination, harassment, wage-and-hour and related suits. See EMPLOYMENT on Page 23

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SPORTS BUSINESS

Kaulig Racing taking big leap to Cup Series Team acquires charters for NASCAR’s top circuit BY KEVIN KLEPS

Chris Rice likes to reward his Kaulig Racing drivers for impressive finishes. The standards required for the honors have changed quite a bit in the past six years. “We used to have top-10 lunches. If we finished in the top 10, I would personally buy lunch for you,” said Rice, Kaulig Racing’s president. “Now, we have lunches for wins.” Kaulig Racing, the Welcome, N.C.based arm of the Hudson-based Kaulig Companies, has eight firstplace finishes in NASCAR’s Xfinity Series since 2020. This year, the company’s three full-time drivers each were in the top seven of the Xfinity Series standings heading into the Tennessee Lottery 250 on Saturday, June 19. Matt Kaulig, who started the racing arm of his family of companies in 2016, has said he wants Kaulig Racing to “become the dominant team in the Xfinity Series.” As that lofty goal has become more realistic, the former University of Akron quarterback is ready to make another leap of faith — one that Rice compares to going from high school football to the NFL. Kaulig Racing announced on Friday, June 18, that it had acquired two NASCAR Cup Series charters for the 2022 season. Justin Haley, a 22-yearold who finished third in the Xfinity Series in 2020, will make the jump to the Cup Series as a full-time Kaulig Racing entry. What Kaulig Racing does with its second Cup Series charter is to be determined, a company spokesperson said. The charter could be split between A.J. Allmendinger, a full-time Xfinity Series driver who will have a part-time Cup Series schedule in 2022, and another driver, or it could be leased to another racing team for a year. Charters have been a hot commodity on the Cup Series, NASCAR’s top division, of late. A small supply — 36 total — and big demand, as NASCAR shifts to its Next Gen car in 2022, have led to charter sales that have been well above seven figures.

And the price tag of others reportedly have exceeded $10 million. Kaulig, who opened his first LeafFilter dealership in 2005 and acquired the gutter protection business outright 10 years later, has repeatedly stated his desire to make the move to the Cup Series. He told Crain’s on June 10 that Kaulig Racing already had purchased the cars for 2022 and would start testing later in the summer. “We don’t expect to go in and contend for a championship,” the Kaulig Companies executive chairman said. “I’m not even sure the playoffs are a realistic goal for next year.” It’s a given, though, that those expectations, like Rice’s standards for a lunch celebration, will change, and soon.

‘Trophy hunting’ Kaulig Racing had one full-time Xfinity Series driver in each of its first four years on the circuit. In 2020, the company employed two full-time drivers, Haley and Ross Chastain, and had Allmendinger compete in 11 Xfinity Series races. Haley and Chastain advanced to the Round of 8, and Haley became the first Kaulig driver to move on to the Championship 4 in Phoenix. “Trophy hunting,” a phrase Kaulig Racing uses frequently on social media, started when Kaulig and Rice began to discuss adding a second fulltime car to their Xfinity Series lineup, Rice said. Kaulig said winning races is “super hard,” and it’s “extremely gratifying” that his team has become an Xfinity Series power this soon. Back in 2016 and ’17, when Kaulig Racing had 10 top-10 finishes but didn’t crack a top five in 66 races, Rice “never thought in a million years” that the rise would be so rapid. This season is shaping up as the best yet, with Allmendinger second, Haley sixth and Jeb Burton seventh heading into the 15th race of the year. On June 5, Allmendinger and Haley finished 1-2 in the B&L Transport 170 at the Mid-Ohio Sports Car Course. Kaulig had 450 employees,

Kaulig Racing owner Matt Kaulig and driver A.J. Allmendinger pose for a selfie after Allmendinger won the B&L Transport 170 on June 5 in Lexington, Ohio. | GETTY IMAGES

friends and family members in attendance at the Lexington course, which he considers his home track since it’s about 90 minutes from Hudson. It’s not out of the question, Kaulig and Rice believe, that Allmendinger, Haley and Burton could be among the Xfinity Series top four when the championship race is held in Phoenix on Nov. 6. “I would love to have all three of my guys going for the trophy at the end of the year and then let the best man win,” Rice said.

‘It’s not easy’ In January, Kaulig announced that 22-year-old driver Kaz Grala would compete in a limited NASCAR Cup Series schedule in 2021. Grala finished sixth in the Geico 500 at Talladega Superspeedway on April 25. That result was sandwiched between fifth- and seventh-place showings by Allmendinger in the Geico 500 in February and a Daytona

road race last month. “I think that is surreal, to be honest with you, because it is Cup racing,” Rice said of Kaulig’s three consecutive top-seven finishes in the series. “It’s not easy.” The full-time leap to NASCAR’s top circuit in 2022 will be much more difficult, and expensive. The Next Gen model will feature owners buying cars and parts from the same source. Doing so is expected to reduce expenses, and possibly level the playing field a bit over the long haul, but the initial costs will be extensive. Bringing in sponsorships, which can cover the majority of a racing team’s budget, will be crucial. Kaulig Racing’s success has made that easier, the club’s owner said. “We’re not only building a great race team, we’re building a nice little business,” Kaulig said. Securing a pair of charters is massive, because ownership guarantees a team entry and a share of the purse

for each points race. Quality showings in recent seasons mean a bigger slice of the pie. As was the case in the Xfinity Series, Kaulig Racing figures the going could be slow at first in the Cup Series. “You’re still gonna see a pretty big separation on the good teams, or the big teams — just because you have so much more,” Kaulig said of a Cup Series that in 2021 includes four owners who account for 16 of the 36 charters. Rice, who said Kaulig Racing isn’t a typical NASCAR team because of its fun approach and its constant talk about trophies, is confident the Cup Series will be another successful venture. “One day we want to be a powerhouse, and to do that, you gotta take your lumps and you gotta do things that sometimes are not exactly fun,” the Kaulig Racing president said. Kevin Kleps: kkleps@crain.com, (216) 771-5256, @KevinKleps

EDUCATION

University of Akron, city team up for arts-based initiative BY AMY MORONA

The city of Akron wants to boost its population. The University of Akron would undoubtedly like to see more students. Those quests can be intertwined. “If you look at successful universities and successful cities, they have relationships that are positive,” said Akron Mayor Dan Horrigan. In a talk with the Akron Roundtable last month, UA president Gary Miller said the university needs to redefine what it means to be a campus post-pandemic. Officials are turning to their downtown partners and the area’s art scene to help figure it out. AkronArts is a new wide-ranging initiative that looks to better connect some of the university’s arts offerings with the city. University spaces, like

the Polsky Building in Akron, will be repurposed. The downtown dwelling will house some of UA’s arts programs while becoming a place for community members to visit for arts offerings. E.J. Thomas Hall and the Akron Civic Theatre will pair together to host more programming, and the National Center for Choreography will have more offerings, too. “Important programs such as the Cummings Center for the History of Psychology, and Synapse, the art and science series of the Biomimicry Research and Innovation Center, will connect art and music to the physical, biological and social science programs of the university to create community learning and entertainment opportunities on campus and downtown,” UA officials wrote in a release.

The move centers on stressing the idea of place. The city started to think about the importance of that before UA did, Miller said. Even though a lot of university employees were involved in Akron’s ongoing revitalization efforts in some way, Miller said, UA officials detected the city was waiting for more institutional involvement from their end. The president pushed back, though, when asked if it’s the first organized partnership between the two. Miller highlighted how the Greater Akron Chamber is collaborating around efforts with polymer science and stressed how the university’s athletics teams have been embraced by the community. But there’s still room for improvement. See AKRONARTS on Page 20

AkronArts is a new wide-ranging initiative that looks to better connect some of the university’s arts offerings with the city. | UNIVERSITY OF AKRON JUNE 21, 2021 | CRAIN’S CLEVELAND BUSINESS | 3

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Q Holding’s new CEO takes a people-first approach Mauricio Arellano makes employee empowerment a priority at company BY ANDREW SCHUNK RUBBER & PLASTICS NEWS

For Mauricio Arellano, the new CEO of Q Holding Co. as of February, a successful business legacy is a result of employee empowerment — not of an executive’s personal goals or transactional philosophies. As Arellano takes the reins of the more than 3,500-person manufacturing and technical solutions company based in Pepper Pike — it also has locations in Twinsburg and North Canton — he said Q Holding prides itself on delivering elastomer medical, in- Arellano dustrial and automotive devices “with humility.” “I grew up in an environment where I learned about the importance of not just business, but the people in the business,” he said in May. “A leader should enable a culture where employees can contribute and help the organization to grow, whether they are on the floor, in the laboratory or in front of a customer, with incredible dedication.” Growing up in Mexico, Arellano said he initially learned this humanity from his father, “a serial entrepreneur” who worked in electronics, textiles and a host of other industries. “What drew me into business were the life experiences I gleaned from after-dinner conversations at home,” he said. “I idolized my dad, learning about the importance of in-

vestment in a country.” After stints in the corporate culture while living in Buffalo, N.Y., Arellano began to streamline his management experience while working for Sony Electronics, Tyco Healthcare Group LP, Integer Holdings Corp. (formerly Greatbatch Inc.) and Pexco LLC. With every new executive post, Arellano trended toward medical and industrial elastomer device companies. This evolution brought him to Q Holding as chief operating officer in 2018. In his current role, Arellano succeeds Thomas J. Hook. Q — a supplier of silicone solutions for medical devices, electrical connector seals and insulators — is owned by the 3i Group private equity firm. Hook will remain with Q as a non-executive director. Richard Relyea, partner at the London-based 3i Group, said Arellano “brings a wealth of operational and leadership experience.” “Throughout 2020, he played an increasingly pivotal role, overseeing all aspects of our QSR and QMD operating units and has demonstrated tremendous results in leading our key growth and performance initiatives,” Relyea said. “We are confident in his ability to successfully lead Q into the future.”

Structure and growth Q Holding maintains two basic

segments: medical and industrial/ automotive. The latter deals with elastomers in the transportation fields — from aerospace and automotive (including aftermarket), to construction, industrial, lighting and solar. “I think regardless of what industry or what technology you employ, to compete effectively you need a core technology or service offering that truly creates value for customers in a meaningful way. … This is unique to the company and in essence what attracted me to Q — the ability to play an important role in helping OEMs develop life-saving technologies,” he said. And in automotive, Q is helping to protect the more sensitive, critical systems that exist in harsh environments. What makes Q unique in the industrial/automotive and medical device fields, Arellano said, is that it tackles problems as a team and in direct cooperation with the customer. “First and foremost, we are a technology solutions provider. When we are working on a problem presented to us, we tackle it ourselves, with team solutions in quality and design,” he said, adding that Q has a portfolio of proprietary devices that are “packaged, sterile and ready for distribution.” With a network of both manufacturing and distribution facilities (along with material scientists and research and development personnel) in North America, Israel, Slovakia, France and China, Q has be-

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HEALTH CARE

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Most people are in denial that they’ll ever need care, and assume Kendal at Home, which offers life- that if they do, their family will be care services at home to support peo- able to support them, said Kendal at ple aging in place, has announced its Home CEO Lynne Giacobbe. The replans to expand throughout Ohio ality is that family may not be in the and into Massachusetts after 17 years position to provide enough support serving members in the Cleveland or qualified to provide all of the services needed, she said. area and much of Northern Ohio. “Not having a plan in place as we Headquartered in Westlake, the nonprofit will bring to its new mar- age really leaves everybody pretty kets — Columbus, Cincinnati, Day- vulnerable at that point,” Giacobbe ton and Toledo, as well as Massa- said. “This product is one for people who are planning “AGING IS AN AREA OF OUR LIFE THAT ahead and really thinking about that.” WE JUST SIMPLY TRY TO IGNORE.” Kendal at Home was founded on — Kathryn Brod, LeadingAge Ohio president and CEO Quaker principles, chusetts — services including including equality, dignity, respect navigating, paying for and coordi- for individuals and environmental nating long-term care to come di- stewardship. It is one of 14 affiliates rectly to members in their homes or of Kendal Corp., which provides inwherever they are located. Kendal at dependent living, assisted living, Home combines care planning, care memory support, skilled nursing, coverage and care management to rehabilitation care and lifecare at home in eight states. support aging in place.

Kendal at Home was established in 2004 by another affiliate, Kendal at Oberlin, as an alternative to a continuing care retirement community, an option for older adults as they age — though many would prefer to remain in their own homes. By 2025, more than one in four Ohioans will be age 60 and older, according to figures from Miami University. “I believe that we’ve done a very inadequate job frankly as a society in helping people age well,” said Kathryn Brod, president and CEO of LeadingAge Ohio, a trade association representing aging services providers across the state. “Aging is an area of our life that we just simply try to ignore.” People plan for death with life insurance policies to take care of expenses and loved ones when they die, but a small percentage of people have actively planned for the “very likely event” that they will need additional care or support as they age, she said.

4 | CRAIN’S CLEVELAND BUSINESS | JUNE 21, 2021

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come a true global medical device outsourcing company, Arellano said. This is especially important in today’s climate, as world economies emerge from the fog of a pandemic. Arellano noted that some product lines impacted by the pandemic are beginning to return to normal, such as catheters and stents, especially as elective surgeries return. But the medical device industry is not back to pre-COVID levels, Arellano said, and neither are the supply chains that move product. “This applies to almost every supply chain,” he said. “In the case of silicone capacity, the world of silicone material suppliers is highly concentrated. As one of the largest buyers, we are being impacted greatly. We are working miracles to serve

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Kendal at Home’s initial primary market covered Lorain and Cuyahoga counties, but it has since expanded to serve the Northern Ohio region. About five years ago, it became its own affiliate, independent from the Kendal at Oberlin brand, in order to prepare for broader growth. Since then, Kendal at Home has worked to strengthen its internal operations, and separate previously shared administrative functions, such as finance and human resources. Kendal at Home currently employs a staff of about 18, and plans to add members to its team commensurate with its member growth, she said. The expansion “really strengthens our program, and I think offers more expertise and really makes us more

our customers and it is a challenging time, to say the least, across all commodities. We need to manage, share and mitigate, as these issues will be here with us for a while.” Material innovation is one of the constants in the medical device industry, and that certainly is the case at Q Holding. In the interventional area, Q has been working on the peripheral vascular platform for years, with catheters, stents and entero feeding devices, which can vary greatly by patient. Silicone tends to be the foundational elastomer in many cases, but not always. “We work with customers to find that special formulation, but sometimes silicone is not always the solution. Other thermosets, like polyiso-

financially stable, and that certainly benefits every member in the program,” Giacobbe said. Kendal at Home has established office spaces in its new areas in Ohio, Giacobbe said. In Columbus, LeadingAge Ohio is leasing space to the organization. “I think that the Kendal at Home product, as well as the other at-home products, I’m hopeful that this concept becomes — ubiquitous might be a little lofty, but that when people are thinking about aging, what immediately comes to mind is where and how am I going to navigate these needs should I have them?” Brod said. Joe Orlando, associate director of SeniorBridge Home Care overseeing the Cleveland area, has been working with Kendal at Home for more than a decade. One of the big differentiators for Kendal at Home, he said, is its care coordinators, who understand the industry and the clients’ needs. “That care coordinator is intimately involved with their members,” he said. “If they do need care — I mean many of them may not ever need care, but if they do need care, then it’s already a well-established relationship. And so it’s easier on our end to help somebody, because we get a lot of information, we know what they’re looking for.” Navigating the network of services and care can be confusing and over-

prene, butyl rubbers, halogen butyl and nitrile rubbers, can be solutions,” he said. “We work with organics and inorganics extensively, as well as specialty coatings.” Arellano added that he hopes to see the realm of electrical seals and insulators (outside of medical) expand under his leadership, but reiterated that success continues to be a function of the business and not the individual. “I see us step by step earning our way to becoming a household name,” he said. “Medical device delivery with humility — functioning as an extension to our OEMs and customers — that, for us, is truly inspiring.” Rubber & Plastics News is a sister publication of Crain’s Cleveland Business.

whelming for a senior who doesn’t have a lot of help and is thrown into a situation where they’re making a lot of decisions when they return from a hospital stay, Orlando said. Or even for a family member or loved one making those decisions — that’s often completely unfamiliar territory. An older adult might need physical or occupational therapy after surgery, support from a private duty home care agency, hospice care or many other services that present a list of questions for them or their loved ones. What does insurance cover? Will an organization have the billable services the senior needs? Does the agency they’re calling have someone available at the right times? “So our care coordinator is involved in all that planning and putting everything in place and making sure that people are showing up, that your needs are met, that if you need a hospital bed or a walker, or any of those things, that you have them and that they’re in your home and that you’re able to successfully go home and rehabilitate and get back to whatever independence status you can,” Giacobbe said. “We’re working to make sure that all those moving parts are in order and helping to have the most successful outcome for all of our members.” Lydia Coutré: lcoutre@crain.com, (216) 771-5479, @LydiaCoutre

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PERSONAL VIEW

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EDITORIAL

A great eight? B

eing the mayor of a big city is hard work. Maybe harder than ever, thanks to COVID. And yet eight people want to succeed Frank Jackson as mayor of Cleveland. The candidates who filed petitions by last week’s deadline to enter the race include longtime elected officials and first-time candidates: Justin Bibb, chief strategy officer of tech nonprofit Urbanova; attorney Ross DiBello; Ward 7 councilman Basheer Jones; council president Kevin Kelley; Dennis Kucinich, former congressman and former Cleveland mayor; former Ward 2 councilman Zack Reed; Cuyahoga County deputy sheriff Landry Simmons; and state Sen. Sandra Williams. Voters have time to get to know them, or get to know them better, as the primary takes place on Sept. 14, and then the top two finishers meet for the Nov. 2 general election. Before the primary, we plan to have all the candidates as guests on our podcast, The Landscape, to talk about their visions for Cleveland. Among the things we want to know: • How can we foster faster economic growth in Cleveland? • How would you help students make up for educational losses suffered during the pandemic? • Do you think downtown is healthy and successful? If not, what would you do to change that? What about the neighborhoods? • What’s more important for the city: building new homes and commercial space or rehabbing/expanding/better using existing homes and storefronts? • As crime has risen in Cleveland during the pandemic, what would you do to address it? • Are you pleased with the current direction of the Opportunity Corridor? How about the proposal for the lakefront laid out by the Browns? That’s not an exhaustive list, and we look forward to hearing the candidates talk about these and other issues over the next several months. We hope they take seriously the need to speak directly about the city’s challenges while making the case for optimism about where we’re heading. Voter turnout in recent elections has been low. There’s an opportunity to engage people, though, with a compelling plan for the future. It’s a cliché to say an election is the most important in our lifetimes, and we wouldn’t go that far this time around. But

2021 offers the unique opportunity to pick the successor to the city’s longest-tenured mayor. Change is coming. These candidates should be ready for the challenge.

Crossing the divide Ohio legislators, so often hostile to the needs of cities, have another spectacularly bad idea: an effective ban on municipal high-speed internet programs in the state. This, as well as an effort to strip $190 million from the state’s budget plan for broadband expansion, comes from Republicans in the Ohio Senate. Both efforts, if they succeed, would be significant setbacks to closing the digital divide and would send a message that Ohio is not a forward-looking state on technology investments. As Cleveland.com noted, “Under language slipped into the budget bill as part of a massive Senate amendment, the 30 or so municipal broadband programs in Ohio, including in cities such as Fairlawn, Hudson, Medina, and Wadsworth, would not be allowed to operate so long as there is a private-sector company operating in the area — as there are in most, if not all of the cities. The Senate’s proposal would also bar municipalities from accepting federal money for the purpose of starting a broadband program.” Gov. Mike DeWine in his initial budget sought $250 million in state grants for broadband construction in underserved areas. The House of Representatives cut that to $190 million, and now the Senate is looking to eliminate that funding altogether, though it passed a separate bill providing $20 million in grants. We’re moving in the wrong direction. Baiju Shah, head of the Greater Cleveland Partnership, tweeted, “This amendment severely limits efforts across the Cleveland area to end the digital divide and improve equity and inclusion. We are against it.” Lt. Gov. Jon Husted added, “We have a lot of momentum going in Ohio on expansion of high-speed internet services. But if the version of this bill ... passes, all that will be dead.” Husted was optimistic the Senate’s moves can be reversed. We hope he’s right. Otherwise, a lot of good work already done will be wasted.

Executive Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing Editor: Scott Suttell (ssuttell@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com

Recently, I was interviewed about the impact of the truck driver shortage. I also have noticed a lot of coverage about the labor shortage across many industries (e.g., late trash pickups, theme park closures, and many more small businesses). This is not a problem that will go away any time soon given the surge in demand Chen is an as many states reopen as well as other associate factors attributed to the shortage. So what professor of else can small businesses do to address operations and the problem besides fighting for new supply chain hires during this challenging time? Is management at there low-hanging fruit that can be taken Cleveland State advantage of before costly investments University. need to be made in automation or digitalization to replace some manual works? One quick-win solution is to increase the efficiency or productivity of the overall operations by optimizing the critical bottleneck resource(s). Unlike simply employing more, optimizing the bottleneck avoids the possibility of scaling up inefficient operations and has other benefits beyond meeting the demand. First, it reduces inventory, which helps another problem — long lead time to fulfill orders. This, together with improved bottleneck capacity, helps increase sales and improve customer satisfaction. Second, a higher productivity helps pay for wage increases and undercuts competitors’ prices, which give companies competitive advantages in supply and demand markets. It also helps our nation to keep inflation in check. This is also how some jobs may be brought back to the U.S. because of more productive labor to justify the higher labor costs. Take the trucking industry as an example. There is certainly potential for improving the productivity of drivers, since only about 60% of a driver’s drivable hours are behind the wheel. Moreover, 30% of a driver’s workable hours are spent waiting for loading and unloading goods at shipping and receiving facilities — the dwell time. A 2020 research project has shown that individual cargo handling facilities have the biggest impact on dwell time, followed by the method used by drivers to update their arrival time. It is worth further investigation into what specific operational practices and policies adopted at facilities attributed to such variations. Inefficient facilities may be incentivized to adopt some proven best practices (or penalized by higher costs). Similarly, drivers may be advised (or also incentivized) to provide better estimated arrival time so the facilities can be better prepared. Other inefficiencies may be identified through further research and addressed through better coordination with shippers, receivers and carriers. These efficiency improvements will start having diminishing returns once most low-hanging fruit is picked. Ultimately, more hiring may be required or new technologies will need to be implemented, but one should not default to them as first or only options when facing labor shortage. While some inefficiencies might only be identified through advanced quantitative methods, most can be found rather easily through some quick data analysis. The real challenge, though, for many companies is to have a change mindset from top to bottom in order to break the status quo. Labor shortage is everywhere, including China. If we are to bring jobs back from aboard, we cannot afford to do business as usual like it was done decades ago. With the Biden administration laying out plans for reshoring and infrastructure spending ready for the post-pandemic economy, embracing the labor shortage challenges as opportunities to improve productivity will supercharge our economy as we return to the new normal.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing ClevEdit@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

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

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OPINION

Global Partnership Built on

Deep Local Knowledge PERSONAL VIEW

Justin Bibb is right leader at right time BY FRED CUMMINGS

The upcoming Cleveland mayoral election is critical. We must choose a forward-thinking leader who has a deep understanding of Cleveland and what it needs to improve. Now more than ever, our city needs someone who has the energy and vision to fight for change. Justin Bibb has the relationships, savvy and disposition required to improve our public education system, ensure the safety of our neighborhoods, address shortcomings within our criminal justice system, and aggressively pursue economic development opportunities. I am supporting Justin because he is the right leader to address the daunting issues Cleveland currently faces. The son of a social worker and first responder, he learned the value of hard work at a young age. Despite the challenges he faced growing up on the southeast side of Cleveland, Justin persevered, earning his undergraduate and graduate degrees before embarking on a successful professional career in consult-

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RTA route changes leave suburban commuters in lurch I’m writing in response to the June 14 article about RTA’s redesign (“Deliberate design: Greater Cleveland RTA rolls out new routes”). As a former RTA suburban commuter, I appreciated my route, which was a rush hour, prime direction only route. It was a 30-minute, maximum, commute from my home to work on a generally clean and comfortable bus for $5 a day. Then the multiple surveys came out and the meetings were available and, regardless of how many times they asked, many of my suburban commuter friends and I told RTA the same thing — keep the suburban commuter Park-N-Rides and Flyers. Instead, RTA did the opposite — changed them enough to make them inconvenient. My 30-minute commute will become over an hour and will use one lane, inner-city streets. Also, now rush hour buses run every 30 minutes, sometimes 45 minutes apart reduced from what was once 15 minutes.

However, other routes like the 1, 3, 15 and 19 claim to have 15 minutes or better during the a.m. and p.m. rush. Review the timetables for the 55 line, which is being modified to replace the North Olmsted Park-n-Ride. Each departure is about 30 minutes apart. It then takes about 60 minutes-plus to get downtown. Seriously? How did the efficient Park-N-Rides and Flyer routes that were put in place to serve the suburban rush hour commuter get phased out? Somehow the “Greater Cleveland Regional” in the name of the Greater Cleveland Regional Transit Authority must not mean what it implies. Their own website states: “NEXT GEN RTA will allow riders to enjoy shorter wait times throughout the week.” Um, nope! See ya, RTA. Donna Kamp Parma JUNE 21, 2021 | CRAIN’S CLEVELAND BUSINESS | 7

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NEW LEADER Incoming president Leo Hyland talks about his role at St. Vincent-St. Mary.

PREP AND PAROCHIAL SCHOOLS

PAGE 14

Western Reserve Academy’s large campus in Hudson allowed the school to hold its regular morning meetings outside.

NEW LESSONS CONTRIBUTED PHOTOS

Pandemic gave rise to increased flexibility in education BY RACHEL ABBEY MCCAFFERTY

he 2020-2021 academic year taught schools about the value of flexibility. There’s an adage about creativity loving constraint, and Suzanne Walker Buck, head of school for Western Reserve Academy in Hudson, certainly found that to be true during the pandemic. “COVID allowed us to be more creative and entrepreneurial or innovative than we had been in the past,” Buck said. People in traditional institutions often don’t realize how “flexible” or “nimble” they can be until they’re forced to try, Buck said.

WESTERN RESERVE ACADEMY, A CO-ED BOARDING AND DAY HIGH SCHOOL, BASICALLY CREATED TWO SCHOOLS LAST YEAR: AN ONLINE SCHOOL AND AN IN-PERSON ONE.

Western Reserve Academy head of school Suzanne Walker Buck stands in front of the campus food truck, which was added during the pandemic.

If that’s the case, Northeast Ohio’s educators certainly know what they’re capable of now after more than a year of teaching online and outdoors during a pandemic. Western Reserve Academy, a coed boarding and day high school, basically created two schools last year: an online school and an in-person one, Buck said. Western Reserve’s status as a boarding school meant it faced some unique challenges in adapting to the pandemic. The school’s international learners had to be remote, but the school wanted to find ways to maintain community. Remote students were asked to log in at 5 a.m. Eastern

time; for a student in Tokyo, that meant starting class at 6 p.m. their time. That allowed them to join the school in real time for the 9 a.m. community meeting in Hudson. For the students who were able to attend in person, Western Reserve made use of its large campus, spacing students out in classrooms or holding class outside, Buck said. The school also had to rethink how to distribute food, adding satellite locations and a food truck. And because the community spaces in the dorms weren’t a safe option for socializing, the school built outdoor See EDUCATION on Page 10

8 | CRAIN’S CLEVELAND BUSINESS | JUNE 21, 2021

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mollIE edmonson ’21

YUQI (Larry) Zhou ’21

MAYA MOUFAWAD ’21

Danny Botek ’21

Cayla See ’21

Plans to study: Computer Science, Data Science and Economics

Plans to study: Economics/ Government

Plans to study: Art, Pre-Med and Psychology

Plans to study: Physics

Plans to study: Forensic Chemistry

President of Gilmour’s International Club, vital member of residence hall community, helped other international students acclimate to life in dorm

During pandemic, combined passion for art and medicine when she sold her art designs online, donating her proceeds to fund supplies and COVID-19 research at Cleveland Clinic and to Rainbow Babies to use for greatest need.

President of Investment Club (3 years), President of National Honor Society, head of Chess Club, Student Council member, varsity football and tennis, junior varsity basketball and baseball, Male Scholar-Athlete Award winner, Murlan J. Murphy Award winner (leadership and integrity)

Cayla was one of 80 students selected for Ohio University’s Honors Tutorial College. This past summer, she earned the title of international runner-up in the World Schools Debate tournament.

“The most impactful thing was making my Gilmour Family. They encouraged me to push myself and pursue my interests, and I will forever be grateful.”

“I loved going on the Honduras mission trip. It allowed me to see poverty through the eyes of someone experiencing it firsthand, rather than from a distance.”

National Merit Finalist, Phi Beta Kappa inductee, national speech and debate qualifier, will compete on MIT’s women’s lightweight rowing team “The best part of Gilmour is, hands down, the people. The Gilmour community has embraced me with open arms, springboarding me to achieve my goals while simultaneously developing my character. “

“I will miss all those wonderful teachers and mentors!”

“The most impactful part of my Gilmour experience was being able to be a part of a community filled with amazing friends and teachers who have always worked to build me up.”

Minds Educated. Hearts Empowered. You’re ready to launch. We are so proud of everything you have accomplished here at Gilmour. You are not only dreamers, but also doers. You have developed the competence to see and the courage to act and we can’t wait to see all the ways you make the world a better place.

Congratulations to the Class of 2021! The Gilmour Class of 2021 will attend the following colleges and universities in the fall. Arcadia University

Mercyhurst University

University of Dayton

Arizona State University

Miami University

University of Denver

Baldwin Wallace University

North Central College

University of Kentucky

Bowling Green State University

Northeastern University

University of Miami

Brown University

Ohio University

University of Michigan

Claremont McKenna College

Pennsylvania State University

University of Mount Union

Colgate University

Pepperdine University

University of North Carolina at Chapel Hill

Curtis Institute of Music Denison University Duquesne University Ekonomska sola Celje, Visja strokovna sola Elmira College Elon University

Purdue University Rochester Institute of Technology Rollins College SUNY College at Oswego Syracuse University Texas A&M University

University of North Carolina at Greensboro University of Notre Dame University of Pittsburgh University of Rochester

Eric Brandt ’21

ANIA LEWIS ’21

Plans to study: Business Administration with a concentration in Finance and minors in Mathematics as well as Nonprofits, Philanthropy and Volunteerism

Plans to study: Cello Performance

University of South Carolina

Fordham University

The Ohio State University

Georgetown University

The University of Akron

Indiana University

The University of Arizona

John Carroll University

The University of Tampa

Virginia Polytechnic Institute and State University

Kent State University

University of California-Los Angeles

Washington University in St Louis

Lehigh University

University of Cincinnati

Worcester Polytechnic Institute

Massachusetts Institute of Technology

University of Colorado Boulder

Xavier University of Louisiana

University of Southern California University of Toronto

National Merit Finalist, founded Reach Out! (service club), varsity soccer player, national speech and debate qualifier, completed Gilmour’s VECTOR program in business and entrepreneurship “Through my involvement in Reach Out!, I was able to foster my love for community through utilizing my privilege to better the world around me; and in Speech, I was able to grow my voice in a way to impact my peers.”

Began playing cello at 6, member of Cleveland Institute of Music’s Young Artists Program, plays in quartet called Lumière, won 2021 Chicago National Chamber Music Competition and 2021 Rembrandt Annual High School Chamber Music Competition, placed second at 2021 Fischoff National Chamber Music Competition “It was incredible to be back on campus for the first time after the pandemic and see how strongly the community worked together to get through such a hard time.”

Learn about more of our graduates at gilmour.org/gradbios | Gilmour Academy is an independent, Catholic, coed school in the Holy Cross tradition. Preschool - Grade 12

FOCUS | PREP AND PAROCHIAL SCHOOLS

L b

EDUCATION

school-to-grade-12 school with locations in Cleveland, Gates Mills and Lyndhurst, making in-person learnFrom Page 8 ing a priority in 2020-2021 meant fire pits to give students a place for switching up schedules. For example, at the elementary “camaraderie and fellowship,” while school level, students stayed in classstaying distanced, Buck said. Spring Garden Waldorf School in rooms with their teachers most of the Copley took outdoor learning a step day, with more specialized teachers for certain classes coming to see further. Even without a pandemic, stu- them instead of the other way dents at the elementary and middle around, said Garet Libbey, associate school play outside three times a day head of school for program. Hawken saw some benefits to in all kinds of weather, said Rocky Lewis, director of development. But keeping students in their classrooms during the pandemic, class time and minimizing travel, particularly for younger students who struggle moved outside, too. Parents helped the school build with transitions, Libbey said. School outdoor desks for every student. And leaders are looking for ways to replievery class had some kind of shelter, cate that going forward. For example, such as a tent or pavilion. A donor Hawken may make sure there are helped equip the building with in- spaces for arts education in all parts door and outdoor internet access, of the building, so students don’t which allowed students who were have to travel as far as in the past. Hershey Montessori School, a learning remotely to stay connected. school Before the snow started falling, stu- birth-through-12th-grade dents attending school in person were with campuses in Concord and Huntsburg, also made use of that learning outside “24-7,” Lewis said. The school upgraded its ventila- kind of cohort model. The academic and program staff at tion system by late fall, allowing for more indoor education as the weath- Hershey Montessori worked to redesign its programs and schedules to make in-person learning possible, said head of school Paula LeighDoyle. The student cohorts were created so that if someone tested positive for coronavi— Tymothy Tagliaferro, Gilmour Academy rus, it would minimize the number of people er worsened. But dramatically grow- who had to isolate. That meant taking ing the outdoor learning spaces was a siblings and carpools into considerpositive that came out of the pan- ation, she said. And staff had to find places for codemic, Lewis said, and Spring Garden Waldorf will continue to use horts to spread out. At the school’s Concord campus, that meant taking them in the future. At Hawken School, a private pre- splitting the gym into four additional

“EVERYTHING OUR STUDENTS EVER DID IN THE PAST, THEY JUST FOUND A DIFFERENT WAY TO DO IT AMID THE PANDEMIC.”

BY R

Th scho shor lear tanc B carr a lo dem cati

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Western Reserve Academy in Hudson used its outdoor space during the pandemic for activities such student gatherings.

classrooms, Leigh-Doyle said. Having small cohorts for middle and high school students led to stronger bonds, which strengthened classroom collaboration, LeighDoyle said in an email. The school plans to find ways to incorporate these kinds of small group activities into regular practice this fall. That kind of bonding experience for students was important to school officials. After the remote spring in 2020, students and families told Hawken School that it was the personal interactions — time with friends and teachers — that students

DEFINE YOUR NAME at Holy Name High School!

missed the most, Libbey said. At Gilmour Academy, a Catholic school in Gates Mills that serves students in preschool through grade 12, leadership worked to find ways to keep students socially and emotionally engaged even in the initial months of COVID-19. The school held a drive-thru senior parade and graduation in spring 2020, said Tymothy Tagliaferro, who was the middle school director and associate director of the upper school this past year. While Gilmour was able to have an in-person graduation in 2021, students loved the senior parade

| CONTRIBUTED

through campus, so the school kept it in place. It’s a tradition now, said Tagliaferro, who will serve as Gilmour’s upper school director next year. In general, students at the school found unique ways to come together, renting a projector for an on-campus movie night or hosting a canned food drive instead of a bake sale. “Everything our students ever did in the past, they just found a different way to do it amid the pandemic,” Tagliaferro said. Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com

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FOCUS | PREP AND PAROCHIAL SCHOOLS

Long-term changes inspired by a challenging year BY RACHEL ABBEY MCCAFFERTY

The COVID-19 pandemic caused schools across Northeast Ohio to find short-term solutions to help students learn remotely or safely social distanced. But some of those solutions may carry forward into the future. Here is a look at a few of the ways the pandemic might have changed K-12 education in the region going forward.

performance or to hold parent-teacher conferences virtually, she said. At Hawken School, remote education taught school leaders about the benefit of students being able to “access information when they were ready to access it,” said Garet Libbey, associate head of school for program. Some students may not be ready for math class in the morning and would prefer to take it in the afternoon, for example. Hawken, which has loca-

tions in Cleveland, Gates Mills and Lyndhurst, is looking for ways to make its scheduling more flexible and personalized for students, Libbey said. “It’s something we have been talking about, especially in the second half of this year, and, certainly, it’s going to be a key focus for us moving forward in the next couple years,” she said. Rachel Abbey McCafferty: (216) 771-5379, rmccafferty@crain.com

Spring Garden Waldorf School in Copley moved classes outdoors for much of the pandemic. | CONTRIBUTED

An increased emphasis on outdoor learning Many schools in the area moved class outside this year when the weather permitted. And now that they have the capabilities in place, they expect outdoor class to be a regular option. Spring Garden Waldorf School in Copley built outdoor desks and added Wi-Fi, holding class 100% outside until winter began in earnest. It will continue to use those outside spaces, director of development Rocky Lewis said. Hershey Montessori School has long made use of the outdoors at its campuses in Concord and Huntsburg, but it also created new learning spaces outside this past year, clearing trees in the woods and putting up tents, head of school Paula Leigh-Doyle said.

The value of a quick check-in Shortly before the pandemic, Hershey Montessori’s staff had gotten training in “nonviolent communication,” which was designed to help them better respond to challenging situations, Leigh-Doyle said in an email. It gave them language to express needs and a shared foundation. Staff knew they wanted to focus on connection in an isolated time, she said, and used that as a value when redesigning in-person learning. Teachers now often start classes with what Leigh-Doyle called a “check-in round” before delving into lessons. Gilmour Academy in Gates Mills found some unexpected value in daily temperature checks. Tymothy Tagliaferro, who was the middle school director and associate director of the upper school this past year, would play music, usually selected by students, during his daily checks. That helped to “set a really great tone” for the day, giving students a positive interaction with an adult at the school outside of class time, Tagliaferro said.

Embracing technology for greater access The pandemic meant Hershey Montessori couldn’t have boarders this year, but it gave those students the option to learn remotely, Leigh-Doyle said. Virtual meetings also helped the school connect further with parents, an option it will keep going forward. In general, live-streaming helped schools connect with a larger community, whether that was out-of-town family or alumni. Lewis said Spring Garden Waldorf hadn’t considered live-streaming capabilities previously, as Waldorf schools tend to delay the adoption of technology in favor of hands-on learning. But going forward, the school might opt to live-stream a

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SOMETHING NEEDED TO BE DONE.

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Kim P (216)

years ago, a sudden death occurred on John Carroll’s campus.

Eric Beck, a freshman at the time, was sitting in a room nearby. He didn’t know what was going on until the local Emergency Medical Services arrived. Beck was a certified Paramedic himself, working part time while attending JCU. He realized that had first responders been there sooner, a life might have been saved.

“AFTER THAT NIGHT, I RECOGNIZED A REAL NEED IN OUR CAMPUS COMMUNITY.” He reached out to connections at local hospitals and fire departments, and he brought together the initial 50 student volunteers and faculty. Together, they created a student-led organization that could immediately respond to oncampus medical emergencies.

JCU EMS was born. Today, the organization still serves the John Carroll community.

Dan S (216)

Chuck (216)

The students work closely with local fire departments and each year, JCU EMS members graduate and do amazing work within healthcare.

Scott (216)

Sue W (330)

Since 2002, there has been a student chief and a deputy chief at the helm of the JCU EMS, and it has provided leadership experience for hundreds of students over the past two decades. Today, these graduates are in service and leadership roles throughout the country.

“SIMILAR TO MY EXPERIENCE ESTABLISHING EMS AT JCU, MY ROLE AT UH IS TO ENSURE THAT WE CAN SUSTAIN OUR MISSION FOR THE COMMUNITY INTO THE FUTURE. MANY ASPECTS “ONE OF THE UNIQUE CHALLENGES OF A STUDENT- ARE SIMILAR: LEADING ONESELF WITH INTEGRITY; LED ORGANIZATION IS SERVICE TO OTHERS AND THAT THE LEADERSHIP CREATING AN INCLUSIVE TURNS OVER EVERY FOUR ENVIRONMENT.” YEARS. JOHN CARROLL IS WHERE I LEARNED HOW Leading with purpose, Eric TO BUILD SOMETHING Beck has made a difference THAT CAN ENDURE.” Now, Eric Beck works as the Chief Operating Officer for University Hospitals Health System and continues to volunteer as the Medical Director for JCU EMS.

Conta clbfre

in JCU, in Cleveland, and in countless lives.

Conta clbfre

Find Eric Beck’s story and others at jcu.edu/humanimpact

BRAVE YOUR QUEST

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FOCUS | PREP AND PAROCHIAL SCHOOLS

Unexpected tools that help disadvantaged kids excel in college High school level programs fill social, emotional gaps that often hold back bright students BY BLOOMBERG

Educators have long struggled to help students like Tiaja Harley earn bachelor’s degrees, the surest route to the middle class. Raised by a single mother who earned minimum wage, Harley loved to read and was good at math and science in elementary school. Students like her do get into college, but the vast majority drop out. Now a growing body of research and fresh data show that social and emotional gaps, rather than academic ones, are holding back many bright students, especially children of color. Give them some of the tools of the privileged — early and steady involvement with the professions and professionals — and many will not only get into college but through it.

This approach is gaining currency as it attracts support from philanthropists. Wall Street executives such as Rick Rieder, a chief investment officer at BlackRock Inc., have signed on. So has the Bill & Melinda Gates Foundation, which has spent $120 million on programs linking schools more directly to careers for low-income students. Anthony Jack, a Harvard sociologist who has studied first-generation students at elite colleges, said his research confirms the value of these initiatives. “Lower-income students come to college without practice at close relations with professional adults,” noted Jack, who was a low-income, Black undergraduate at Amherst. “Their parents’ jobs rely on not making a fuss. That’s how you keep

a job like being a janitor. But these kids are thrown into an environment where they are expected to vocalize and connect.” Early results from a range of school systems — charter, parochial and public — are striking. From a third to one-half of the high school graduates finished college in six years. That’s approaching the rate of students from the top 25% of families socioeconomically, and it’s two to four times better than those from the poorest. Harley is among those who succeeded. “I wasn’t raised to have a profession,” said Harley, now 24. After many internships and mentoring, she very much does — as a construction engineer. Cristo Rey, a national network of 37 Catholic schools founded in Chi-

Class of 2021! We can’t wait to see what you do next.

EARLY RESULTS FROM A RANGE OF SCHOOL SYSTEMS — CHARTER, PAROCHIAL AND PUBLIC — ARE STRIKING. FROM A THIRD TO ONE-HALF OF THE HIGH SCHOOL GRADUATES FINISHED COLLEGE IN SIX YEARS. cago that includes Saint Martin de Porres High School in Cleveland, happened on that solution in the 1990s. Cristo Rey found part-time jobs for its low-income Latino students to help pay tuition. The experience and mentoring turned out to be as important as the paycheck. “We had no idea that we had stumbled upon a brilliant educational move,” said Father John Foley, the founder. “By going downtown to an office building and spending a day a week working, their self-esteem went through the ceiling.” The national KIPP network, backed by Walmart Inc.’s Walton family and Gap founders Doris and Donald Fisher, has had a similar experience with internships and mentoring. So has Uncommon Schools, founded by Norman Atkins, a former executive with the Robin Hood Foundation, a favorite Wall Street charity. Harley’s trajectory illustrates the promise of the approach. In fifth grade, she enrolled in Newark’s North Star Academy, where BlackRock offers guidance and job experience to students, and Rieder chairs the board. It’s part of Uncommon’s network of 55 schools in New York, New Jersey and Massachusetts.

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Before she was 10, Harley had already made her way through some of the “Twilight” series and other books. But she faced daunting challenges. No one in her family had gone to college. Her mother, a home health aide, moved yearly to flee gang violence. They depended on food stamps and subsidized housing. Harley suffered from a spine ailment and later, migraines, anxiety and depression. Harley’s new school focused on helping her recognize her professional potential. Starting in eighth grade, she spent time every summer at Rutgers University, where she built paintball guns, pinball machines and solar heaters in an engineering program. North Star rewarded good students with college trips. At 11, Harley visited Washington, D.C., where she saw Georgetown and George Washington universities. The next year, her class went to the Florida Everglades and to nearby college campuses.

The emotional and social support that Tiaja Harley received from Uncommon Schools helped her earn her degree in civil engineering. | ADRIA MALCOLM/BLOOMBERG

By the time she was a high school senior, Harley had visited dozens of schools. All along, in addition to tracking its students, North Star closely studied success rates for first-generation students at various colleges in preparation for sending more alumni. After her junior year, Harley joined an additional program, All Stars, which featured an internship in the Newark office of the Port Authority of New York and New Jersey. Glenessa Gordon, an executive and one of the few female civil engineers there, saw her promise. Like Harley, Gordon is Black. “I had to create a budget and interview other engineers,” Harley said. “She pushed me on college and career. She made me write a paper on why I wanted to be a civil engineer.” In part, North Star encouraged such interactions to prevent a common feeling from plaguing underprivileged students: a sense that they don’t belong. Stanford University sociologists Gregory Walton and Geoffrey Cohen coined the concept of “belonging uncertainty.” When Black students at an elite college have a bad day, they tend to assume that they’re in the wrong place, whereas white students shrug it off. No one played a bigger role in helping Harley gain a sense of herself than Anna Taylor, a former teacher assigned by North Star to be her mentor and coach. (Taylor now

12 | CRAIN’S CLEVELAND BUSINESS | JUNE 21, 2021

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As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/relationshipsummary. © UBS 2020. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. CJ-UBS-2031105874 Exp.: 10/31/2021

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Tiaja Harley’s college degree and graduation portrait. | ADRIA MALCOLM/BLOOMBERG

oversees a staff of such coaches.) “Anna’s my second mother,” Harley said. “I don’t know where I’d be without her.” In 2014, Harley won a full scholarship to the New Jersey Institute of Technology, where Gordon, the Port Authority mentor, had earned her degree. In an earlier era, Uncommon Schools would have declared its mission accomplished — not so for Harley and her cohort of classmates. The charter network paid for her college books, the kind of expense that can easily send low-income students off track. And that was just the beginning. In her freshman year, Harley’s dream almost fell apart. Her family

moved away from New Jersey, so she no longer qualified for a resident scholarship. Harley called her mentor, who worked with state and college officials to have Harley declared a resident while still a minor. When dorms were closed, Harley sometimes had nowhere to stay. She crashed on Taylor’s couch, babysitting for her mentor’s daughter in exchange. Throughout college, Harley used all the skills she learned at North Star — advocating for herself, emailing professors and visiting them during office hours. Harley wrapped up her finals in 2018 with a 3.3 GPA and a batch of recommendations. She had a bachelor’s in civil engineering and a plan to

start her own construction company. Her success was no fluke: Some 58% of Uncommon high school graduates are now completing college within six years, up from 43% a decade ago. Still, Harley’s success couldn’t protect her from a pandemic. Since graduating, she has lost engineering jobs, including a $60,000-a-year position that ended because of COVID. One thing stayed constant: She knew how to bounce back and where to turn. Two years ago, she was jobless and without her family in Newark. She found a stint as a substitute math teacher. Her employer: her alma mater, Uncommon Schools’ North Star.

A CRAIN’S CLEVELAND PODCAST WITH DAN POLLETTA

SPONSORED CONTENT

THOUGHT LEADER FORUM

REAL ESTATE THE BRISK STATE OF REAL ESTATE Real estate trends always are in flux. The COVID-19 pandemic highlighted this notion, impacting every segment of the real estate sector, both locally and nationally. Demand for housing has remained elevated as homebuyers take advantage of low mortgage rates and grapple with limited inventory. Nonresidential construction and real estate activity are increasing regionally as workers return to their offices and more consumers shift from online buying to shopping in stores. This sector is expected to gain ground as economic conditions continue to improve. Industrial competition also remains robust, with companies looking to acquire large space to invest in or occupy, including in Northeast Ohio. The following local and national data underscore some of these trends:

THE SEARCH FOR LARGE INDUSTRIAL SPACE

UNEVEN COMMERCIAL RECOVERY, FOR NOW

A SELLER’S MARKET

The shift to remote working during the pandemic affected the industrial real estate sector. In Northeast Ohio, for example, industrial vacancy rates have remained below 4%. Amid increasing volume of online product sales, companies such as Amazon, DHL, FedEx and UPS have been looking for larger distribution center space to fulfill product demand. Others are looking for larger spaces to maintain inventory capacity in case of supply chain interruptions, such as those experienced in 2020.

The commercial real estate market’s recovery will remain uneven in 2021, according to the National Association of Realtors’ “Commercial Real Estate and Trends Outlook” published in April. Respondents forecast a modest increase in sales of land (5%), industrial warehouses (3%), and Class B/C apartments (1%). However, they anticipate a decline in sales transactions of retail, office and hotel/ hospitality properties through early 2022. All sectors are expected to experience a stronger recovery thereafter.

Demand for new residential construction and real estate have remained elevated as buyers continue to take advantage of low mortgage interest rates. National housing data released in May indicates the rate of rising median list prices finally has begun to slow after a year of acceleration. The May national median listing price is up 15.2% compared with last year. Large metropolitan areas experienced an average price gain of 7.4% compared with last year. In Cuyahoga County, the average listing price in May was about 10% higher than the like period one year ago. National housing data reveal the typical home spent 39 days on the market as of May. The typical home in the Cleveland-Elyria metro area spent slightly less, at 36 days on the market. Throughout summer, buyers still should be ready to move on a listing.

A SHIFT TO SMALLER OFFICE SPACE About 70% of a recent survey’s respondents indicated that companies are leasing or shifting their operations to offices with smaller square footage due to employees working remotely.

SOURCES: CUSHMAN & WAKEFIELD | CRESCO, FEDERAL RESERVE BANK OF CLEVELAND’S FOURTH DISTRICT BEIGE BOOK, NATIONAL ASSOCIATION OF REALTORS, REALTOR.COM

Compiled by Kathy Ames Carr, Crain’s Content Studio-Cleveland

Ready-to-go sites take lead in today’s real estate market NICK CATANZARITE Partner Walter | Haverfield ncatanzarite@walterhav.com 216-928-2981 Catanzarite focuses his practice on real estate development, corporate real estate services and real estate finance. In real estate development and finance, Catanzarite handles transactions for owner-developers, corporations, lending institutions, nonprofit institutions and individuals. In addition, he is experienced in the formation of business entities dealing with real estate, including limited liability companies, joint ventures and limited partnerships. In his corporate real estate practice, Catanzarite works with companies and institutions whose primary business interests lay outside the real estate industry, such as banking and retail, focusing his efforts on singleoccupant developments for corporate clients.

n today’s real estate environment, it’s more important than ever for property owners looking to sell, or even those who might consider selling in the near future, to take proper steps to ensure their

property is as close to “shovel ready” as possible. Consumers in general have little patience these days – real estate is no different.

State, local and federal governments also are calling for shovel-ready projects to keep economic growth strong. The challenge is that the lifespan of a real estate development project typically takes years of design, planning, entitlements and financing. To the extent any required steps could be addressed sooner, property owners should take a more proactive approach and consider the following:

• Ensure projects are resilient and sustainable in a rapidly changing world with extreme weather and a variety of uncertainties • Examine how much economic growth the project will generate • Work with a consultant to find existing funding streams and/or grants • Find ways to combine projects to leverage the most out of your funds

• Facilitate a quick transaction by spending time and money up front to do environmental studies and/or remediation, lot splits and rezonings

• Identify efficient projects that are modular, replicable or integrate new technology and design

• Assess any possible disruptions in the supply chain and increased cost of materials and find alternate solutions

If a site is perceived as having too much hair on it, or it will take too long for all the necessary entitlements, then buyers and end users are more likely to move onto the next site that is more shovel ready.

• Take into account the post-pandemic environment where workforces are downsizing and working remotely

This advertising-supported section/feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content.

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CRAIN'S LIST | HIGHEST-PAID NON-CEOS Ranked by 2020 total compensation 2020 COMPANY NET INCOME (MILLIONS)/ 1-YEAR CHANGE

EXECUTIVE TENURE IN LISTED POSITION

2020 TOTAL COMPENSATION/ 1-YEAR CHANGE

SALARY/ BONUS

STOCK AWARDS/ OPTION AWARDS

NON-EQUITY INCENTIVES/ PENSION VALUE CHANGE

W. NICHOLAS HOWLEY/TransDigm Group Inc. executive chairman (April 2018 - present)

$68,122,801 12.3%

$7,000 —

— $11,880,431

— —

$56,235,370

$699.0 -21.46

JORGE L. VALLADARES III/TransDigm Group Inc. COO (June 2018 - present)

$13,741,542 3.1%

$614,917 $2,200

— $5,296,498

$397,800 —

$7,430,025

$699.0 -21.46

ROBERT S. HENDERSON/TransDigm Group Inc. vice chairman (January 2017 - present)

$13,621,621 -44.2%

$10,000 —

— $1,695,486

— —

$11,916,135

$699.0 -21.46

LEE C. BANKS/Parker Hannifin Corp. president, COO (February 2015 - present)

$10,295,951 -12.6%

$971,250 —

$2,455,433 $1,372,950

$1,737,379 $3,543,794

$215,145

$1,206.3 -20.23

CATHERINE A. SUEVER/Parker Hannifin Corp. former executive VP of finance and administration, CFO (April 2017 - December 2020)

$8,354,451 20.9%

$750,000 —

$1,594,690 $892,350

$1,146,609 $3,867,370

$103,432

$1,206.3 -20.23

MICHAEL P. RUTZ/Sotera Health Co. president, Sterigenics (October 2020 - present) 1

$6,183,333 —

$269,577 $50,000

$4,800,000 $900,000

$153,133 —

$10,623

($38.6)

STEPHEN R. MCCLELLAN/Goodyear Tire & Rubber Co. president, Americas (January 2016 - present)

$5,926,188 1.9%

$731,250 —

$135,003 $809,999

$1,697,350 $2,502,934

$49,652

($1,254.0)

DONALD R. KIMBLE JR./KeyCorp CFO, chief administrative officer (June 2013 - present)

$5,419,914 25.8%

$800,000 —

$2,479,965 $219,999

$1,900,000 —

$19,500

$1,343.0 -21.78

RICHARD H. FEARON/Eaton former vice chairman; former chief financial and planning officer (April 2002 - March 2021)

$5,277,307 -29.7%

$915,864 $501,971

$2,619,771 $774,947

— $373,662

$91,092

$1,410.0 -36.23

UDAY YADAV/Eaton president and COO, Electrical Sector (July 2019 - present)

$5,027,481 -13.5%

$687,695 $388,698

$1,833,840 $542,774

— $1,517,506

$56,968

$1,410.0 -36.23

JOHN P. SAUERLAND/Progressive Corp. vice president, CFO (April 2015 - present)

$4,895,694 7.2%

$672,115 —

$2,275,137 —

$1,935,692 —

$12,750

$5,704.6 43.68

DAVID B. SEWELL/The Sherwin-Williams Co. former president, COO (March 2019 - March 2021)

$4,884,666 10.0%

$750,050 $0

$1,479,102 $1,003,135

$1,459,000 $0

$193,379

$2,030.4 31.73

MARK R. BELGYA/The J.M. Smucker Co. former vice chair (May 2019 - September 2020)

$4,868,693 40.6%

$637,693 $12,800

$1,179,185 $376,000

$547,200 $2,074,219

$41,596

$779.5 51.54

ALLEN J. MISTYSYN/The Sherwin-Williams Co. senior VP, finance; CFO (January 2017 - present)

$4,559,198 9.2%

$750,088 $0

$1,479,102 $972,269

$1,167,000 $0

$190,739

$2,030.4 31.73

ANDREW J. "RANDY" PAINE III/KeyCorp executive VP; president, Key Institutional Bank (January 2019 - present)

$4,389,459 12.2%

$600,000 —

$2,069,978 $229,998

$1,450,000 $19,533

$19,950

$1,343.0 -21.78

CLIFFORD T. SMITH/Cleveland-Cliffs Inc. executive VP, COO (January 2019 - present)

$4,330,842 16.6%

$706,218 $900,000

$1,018,304 —

$1,406,940 $234,200

$65,180

($122.0)

AMY G. BRADY/KeyCorp chief information officer, executive VP (March 2012 - present)

$4,197,137 39.8%

$700,000 —

$2,259,967 $139,999

$1,075,000 —

$22,171

$1,343.0 -21.78

DARREN R. WELLS/Goodyear Tire & Rubber Co. executive VP, CFO (September 2018 - present; October 2008-December 2013)

$4,184,291 -43.4%

$780,000 —

$144,999 $869,999

$1,790,300 $519,909

$79,084

($1,254.0)

JOHN P. BRASE/The J.M. Smucker Co. COO (April 2020 - present)

$4,153,988 —

$26,923 $400,000

$3,660,475 —

$32,705 —

$33,885

$779.5 51.54

CHRISTOPHER R. DELANEY/Goodyear Tire & Rubber Co. president - Europe, Middle East and Africa (September 2017 - present)

$3,906,656 4.0%

$731,250 —

$135,003 $809,999

$1,628,150 $577,157

$25,097

($1,254.0)

PATRICK K. CALLAHAN/Progressive Corp. president of personal lines (April 2015 - present)

$3,855,814 19.4%

$565,384 —

$1,650,123 —

$1,628,307 —

$12,000

$5,704.6 43.68

SCOTT J. LEFFLER/Sotera Health Co. CFO, treasurer (April 2017 - present)

$3,841,831 71.2%

$369,805 $225,000

$1,200,000 $1,800,000

$222,113 —

$24,913

($38.6)

PETER J. IPPOLITO/The Sherwin-Williams Co. senior VP of strategic initiatives (April 2021 - present) 2

$3,702,284 2.3%

$630,028 $0

$1,131,078 $771,642

$948,000 $0

$221,536

$2,030.4 31.73

PHILIP D. FRACASSA/The Timken Co. executive VP, CFO (February 2014 - present)

$3,636,888 -10.8%

$499,112 —

$1,226,319 —

$338,373 $1,399,000

$174,084

$284.5 -21.43

APRIL MILLER BOISE/Eaton executive VP, general counsel, secretary (January 2020 - present)

$3,633,662 —

$501,699 $492,250

$2,248,842 $258,575

— —

$132,296

$1,410.0 -36.23

CHRISTOPHER A. COUGHLIN/The Timken Co. executive VP, group president (2014 - present)

$3,484,034 -16.9%

$497,200 —

$1,332,379 —

$337,210 $1,150,000

$167,245

$284.5 -21.43

MICHAEL J. LISMAN/TransDigm Group Inc. CFO (July 2018 - present)

$3,480,415 -75.7%

$496,458 $2,580

— —

$327,420 —

$2,653,957

$699.0 -21.46

ANGELA G. MAGO/KeyCorp president, Key Commercial Bank and Real Estate Capital (May 2019 - present)

$3,383,120 —

$600,000 —

$1,439,975 $160,000

$1,150,000 $13,195

$19,950

$1,343.0 -21.78

DAVID J. LEMMON/The J.M. Smucker Co. former president of Pet Food and Pet Snacks (June 2018 - November 2019)

$3,336,208 63.8%

$322,462 $10,540

$787,114 $237,150

$230,563 $339,256

$1,409,123

$779.5 51.54

RYAN G. PATTERSON/Goodyear Tire & Rubber Co. senior VP of business integration (March 2021 - present) 3

$3,316,599 11.1%

$585,000 —

$75,004 $449,999

$1,015,600 $1,170,642

$20,354

($1,254.0)

RANK

OTHER

Source: S&P Global Market Intelligence (spglobal.com/marketintelligence) and Crain's research (csoder@crain.com) | This list includes public company executives whose 2020 compensation was reported in public filings. Net income is income attributable to ordinary shareholders. Pension value change column also includes nonqualified deferred compensation. NOTES: 1. Rutz served as COO from May 2020 to October 2020. 2. Ippolito previously served as president of The Americas Group for Sherwin-Williams. 3. Patterson previously served as president, Asia Pacific.

Get 100 executives and more data in Excel format. Become a Data Member: CrainsCleveland.com/data 18 | CRAIN’S CLEVELAND BUSINESS | JUNE 21, 2021

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CRAIN'S LIST | HIGHEST-PAID FEMALE EXECUTIVES Ranked by 2020 total compensation RANK

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2020 COMPANY NET INCOME (MILLIONS)/ 1-YEAR CHANGE

EXECUTIVE TITLE AND TENURE IN POSITION

2020 TOTAL COMPENSATION/ 1-YEAR CHANGE

SALARY/ BONUS

STOCK AWARDS/ OPTION AWARDS

NON-EQUITY INCENTIVES/ PENSION VALUE CHANGE

S. TRICIA GRIFFITH/Progressive Corp. president, CEO (July 2016 - present)

$15,220,523 8.4%

$980,770 —

$9,500,037 —

$4,707,694 —

$32,022

$5,704.6 43.68%

BETH E. MOONEY/KeyCorp former chairman, CEO (May 2011 - May 2020)

$11,512,891 19.1%

$455,366 $833,000

$9,599,972 —

— $2,746

$621,807

$1,343.0 -21.78%

CATHERINE A. SUEVER/Parker Hannifin Corp. former executive VP of finance and administration, CFO (April 2017 - December 2020)

$8,354,451 20.9%

$750,000 —

$1,594,690 $892,350

$1,146,609 $3,867,370

$103,432

$1,206.3 -20.23%

AMY G. BRADY/KeyCorp chief information officer, executive VP (March 2012 - present)

$4,197,137 39.8%

$700,000 —

$2,259,967 $139,999

$1,075,000 —

$22,171

$1,343.0 -21.78%

APRIL MILLER BOISE/Eaton executive VP, general counsel, secretary (January 2020 - present)

$3,633,662 —

$501,699 $492,250

$2,248,842 $258,575

— —

$132,296

$1,410.0 -36.23%

ANGELA G. MAGO/KeyCorp president, Key Commercial Bank and Real Estate Capital (May 2019 - present)

$3,383,120 —

$600,000 —

$1,439,975 $160,000

$1,150,000 $13,195

$19,950

$1,343.0 -21.78%

MARY L. GARCEAU/The Sherwin-Williams Co. senior VP, general counsel, secretary (August 2017 - present)

$3,241,615 —

$640,097 $0

$870,060 $601,881

$996,000 $0

$133,577

$2,030.4 31.73%

CHRISTINE L. WALKER/FirstEnergy Corp. senior VP, chief human resources officer (July 2019 - present)

$2,412,095 —

$407,423 $0

$520,405 —

$246,000 $1,226,402

$11,865

$1,079.0 18.31%

JANEEN B. KASTNER/RPM International Inc. VP of corporate benefits and risk management (October 2007 - present)

$2,172,293 13.0%

$366,917 $0

$972,232 $287,600

$360,000 $140,172

$45,372

$304.4 14.19%

JEANNETTE L. KNUDSEN/The J.M. Smucker Co. chief legal, compliance officer, secretary (November 2019 - present)

$1,835,375 8.4%

$510,154 $10,240

$676,186 $211,200

$340,480 $14,175

$72,940

$779.5 51.54%

MEREDITH S. WEIL/TFS Financial Corp. COO (September 2018 - present)

$1,699,980 -0.8%

$556,756 —

$399,152 —

$556,756 $95,705

$91,611

$83.3 3.84%

KATHLEEN P. LENEGHAN/Invacare Corp. senior VP, CFO (February 2018 - present)

$1,606,838 -33.7%

$424,810 —

$799,450 —

$365,400 —

$17,178

($28.3) —

JAMIE A. BEGGS/Avient Corp. senior VP, CFO (August 2020 - present)

$1,585,325 —

$171,635 —

$1,084,400 —

$145,254 —

$184,036

$131.6 -77.64%

MICHELE R. KUHRT/Lincoln Electric Holdings executive VP, chief human resources officer (February 2019 - present)

$1,551,131 —

$343,000 —

$341,400 $113,674

$420,841 $253,353

$78,863

$206.1 -29.68%

JENNIFER I. ANSBERRY/Lincoln Electric Holdings executive VP, general counsel, secretary (April 2017 - present)

$1,498,623 -0.2%

$411,730 —

$344,180 $177,650

$399,073 $56,384

$109,606

$206.1 -29.68%

OTHER

income is income attributable to ordinary shareholders. Pension value change column also includes nonqualified deferred compensation.

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AKRON

Timken finding new growth in service and repair Unit brings in $126 million in annual revenue BY DAN SHINGLER

North Canton’s Timken Co. has gone from being a world-renowned bearing company to a manufacturer of complex powertrain systems and components, ranging from gear drives to lubrication systems for industry and specialized power-transmission products for the wind-energy business. Along the way, it’s also quietly become a big service company. Timken now employs more than 1,000 people who service and repair its own products, as well as those made by its competitors. That’s provided not only Rapp a stream of revenue, but also a way to cement relationships with existing customers and to court new ones, say company executives and at least one analyst following Timken. It’s been an evolutionary process, said Carl Rapp, group vice president of Timken’s Power Systems business who oversees the service business and its 16 locations across the U.S. “We designed a mechanical or an electrical solution for an end user and then over time built a service component to follow that equipment over its entire life,” said Rapp. That’s particularly important to Timken and its customers, he said, because many of the company’s products are designed to last years or even decades, often in harsh environments. “A gear box we put in a Navy ship will literally go into service for 40 or 50 years,” Rapp said, citing one example.

All told, the service and repair business makes up 7% of Timken’s $1.8 billion process industries segment, the company reports, which amounts to about $126 million in annual revenue. It’s also growing, said Timken chief financial officer Phil Fracassa via email. “While repair and remanufacturing services makes up a relatively small amount of the company’s revenue, we’ve more than doubled our sales in the category over the last 10 years, and services has become an important part of our value-proposition to customers in the aftermarket,” Fracassa said. “We’ve built up our services capabilities largely through strategic acquisitions with the additions of companies like Philadelphia Gear, Standard Machine, Smith Services and Cone Drive, along with organic growth in our core target markets.” It's difficult to compare the repair and services business’ 10-year growth to the growth rate of Timken overall, because in 2011 Timken and TimkenSteel were still the same company. But the service and repair business appears to have outpaced much of the rest of the company. The process industries segment to which it belongs, for example, has increased its sales from $1.2 billion in 2011 to $1.8 billion in 2020, for a gain of one half in the same amount of time that Fracassa said the service and repair business more than doubled its revenues. But while $126 million is far from play money, even for Timken, that

Repairing and servicing parts, such as this bearing, has become an increasingly important part of North Canton-based Timken’s revenue and sales efforts. | TIMKEN CO.

might not be the most important way that Rapp’s service and repair unit contributes to the company. His team’s work is also important in terms of driving sales with new customers. That’s in part, Rapp said, because Timken will repair parts and systems made by competitors that often have no such in-house capability to offer. “All of our motor facilities can repair all motor brands; all of our gear facilities can repair all gear brands. … In the gear business, about 45% of our total gear-drive overhauls are other people’s brands,” Rapp said. “This is one of those areas I believe really is a door opener. … You solve that one problem, and you always get a crack at something else.” Fracassa agrees. “The work our teams do every day to respond to breakdowns and complex repairs helps us deepen relationships with our customers. When these customers call on us to be there quickly, when they need us most, we earn their trust. And when

a repair is no longer an option, they typically turn to us for a new solution,” Fracassa wrote. Christopher Dankert, a Los Angeles analyst who follows Timken for Independence-based Longbow Research, said he thinks Timken’s service and repair business has become a very meaningful part of the company’s revenues and sales efforts. “Absolutely,” Dankert said when asked if the unit’s revenues were significant for the company. “And that understates the importance of service overall,” he said. “I’m certainly impressed by their service offering.” Dankert said the buildup of the service and repair business matches Timken’s overall strategy of designing and building more complex parts and systems and providing more engineering services to its customers. All of that increases the value-add the company brings to customers and the margins it captures for itself, he said. He also thinks the business is bound to grow further, because the stuff Timken makes is only getting

AKRONARTS

bring a 4% decline. Miller said the university’s efforts to market the city’s connection to the From Page 3 student experience are increasing. “In a way, we, as an institution, UA is considering incorporating have been preoccupied with some more of the city into prospective stuchallenges that we’ve had,” he said. “I dent tours. The arrival of electric think as we move out of those, we scooters has made connecting downneed to become now more of a com- town and the campus easier for students, too. Yet some hurdles remain. munity partner.” “It’s a matter of perception,” he Several of those challenges have been well-publicized over the years, said. “Why would I go down there, or including leadership changes and if I’m down there, why would I come layoffs. And like other universities up onto campus? Those are the across Northeast Ohio and the coun- things we have got to work on with this vision.” And while the arts “I THINK AS WE MOVE OUT OF THOSE often are thought to be on the periphery, (CHALLENGES), WE NEED TO BECOME they can play a big NOW MORE OF A COMMUNITY part in reviving an area and getting peoPARTNER.” ple to want to stay — Gary Miller, president, University of Akron there, Miller added. try, enrollment struggles were ampli- According to the Akron Cultural Plan, fied during the pandemic. Last fall the creative economy in the city’s brought a reported 8% drop in full- metropolitan statistical area genertime enrollment at UA. The upcom- ates $1.4 billion and supports more ing academic year is expected to than 17,000 jobs.

The Akron Cultural Plan says the creative economy in the city supports more than 17,000 jobs and has a large economic impact. | CONTRIBUTED

“The university partnering with us with those institutional things that they have within their campus certainly provides a tremendous benefit

and boost,” Horrigan said. In fact, arts have been used in other places to help boost “town and gown” relationships, like a Columbus

more complicated and becoming more important to its customers. “Being fully integrated in the power-transmission chain and having more components means you’re that much more important to the customer,” Dankert said. “The complexity is not going down.” But there’s also another reason that the business is important to Timken and its customers, Fracassa said — sustainability. “The services team also plays a key role in advancing the circular economy. By using our remanufacturing and repair services, customers not only save time, money and get like-new parts, they operate sustainably,” Fracassa said. “They’re reusing parts and shrinking their carbon footprint by getting the most out of their existing equipment. It’s a winning formula for everyone and aligns with our commitment to sustainability throughout our global manufacturing network.” Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

art gallery that also serves as a learning space for Ohio State University students. “There are countless other examples of where they’ve used the arts, some to greater impact than others,” said Stephen Gavazzi, an OSU professor who studies campus and community relationships. He added that he pushes universities and cities to rely on data, not anecdotes, when it comes to working together. “There needs to be some way of saying, well, what’s the baseline before we start this arts district, what is it that we’re trying, who is it that we’re trying to impact, and where are we right now?” he said More logistics of the AkronArts initiative are still set to be hammered out over the summer and into the fall. Miller said they’ll raise money to pay for the effort, particularly the work at the Polsky Building, as part of the university’s ongoing capital campaign. Amy Morona: amy.morona@crain. com, (216) 771-5229, @AmyMorona

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Preliminary marketing materials for the Catanese site also included the Diamond Men’s Club building at From Page 1 1628 Fall St. But that property isn’t for sale. In early June, the Cleveland City FOR SCOREBOARD The Catanese brothers have atPlanning Commission approved a MAIN HEADLINE $23 tempted to buy it, without success, rezoning proposal for roughly 120 Graphic Big Chatter gfx chatter li daf Xxxxxxxxxxxxx GFX SUBHEADLINE Xxxxxxx said Frank Maenza, the club’s operaacres in the Flats, to prime the dis22 a;lkdsjflksdjjd saddfas skasdkl;jfne That area 8pt text - black tor. trict for redevelopment. 21 xx “Have I agreed to anything? No. spans much of the Columbus Road dsfsfasd sdfsd afsdfsd 20 Have I listened to offers? Yes. I’m not Peninsula and neighboring Scranxx an idiot,” Maenza said. “Am I looking ton Peninsula, to the east. A shift to XXXX 19 XXXX Xxxxxxxxxxxxx GRAPHIC HEADLINE x to sell? No. Am I looking to turn my semi-industrial zoning, with an xxxxxxxx xxxxxxxx 18 Graphic chatter, Regular that gfx chatter neighborhood into something else? overlay cutsli parking requireF M T WT F x daf a;lkdsjflksdjjd saddfas skl;jfklasd;jf No.” ments and emphasizes walkability, dsfsfasd sdfsd is afsdfsd Jim and John Catanese said that, as meant to streamline the approval x neighbors, they have no complaints process for housing, in particular. Xxxxxxxxxxxxx KEYS x about Diamond or Larry Flynt’s HusThe rezoning require CleveGFXwill SUBHEADLINE GRAPHIC SUBHEADLINE xxxx xxxx xxxx xxxx xxxx xxxx xxxx Above chart tler Club on Center Street, across land City Council approval. LegislaSource: Xxxxxxxxxxxxxx GRAPHIC AUTHOR’S fromNAME the future site of Canal Basin tion outlining the plan — along with XXXXX YYYYY Basic text - black Basic text white Park. But they question whether the a proposed recreational rezoning of Bold text - black strip clubs — which would be exsurrounding properties earmarked Bold text - white XXXXX YYYYY tremely difficult to relocate — are a 8.5 pt text - black for parks and other public spaces — good long-term fit for a district that’s hasn’t been introduced. 8pt text - black tilting away from heavier industries Scranton Peninsula has generated 8pt bold text - white 8 pt bold text - black in favor of housing, dining and riverheadlines over the last four years as MF GFX CREDIT front recreation. the intended site of a 25-acre develThe city and a fleet of partners, inopment called Thunderbird. BrewMF note-source - black cluding consultants led by OHM AdDog, a Scottish craft brewer, plans to visors, are putting the final touches open a pub on the western side of on Vision for the Valley, a plan spanthe peninsula this year. Marketing ning 8 miles of the Cuyahoga River materials from the CBRE Group Inc. from Lake Erie to Harvard Avenue. brokerage indicate that a 4.17-acre That document, which could be preriverfront site, to the south, is under A large stretch of riverfront property is in play on the Columbus Road Peninsula. | MICHELLE JARBOE sented to the planning commission contract to be sold. street. The offering, from Cushman & for approval in July, is meant to serve The Columbus Road Peninsula, Developing ideas for the future of the Flats Wakefield-Cresco Real Estate, as a framework for investments in evby contrast, has been a bit of a sleepA rezoning proposal in the Flats would make it easier for developers to pursue doesn’t list an asking price. erything from major real estate projer. But a shift is underway, spurred residential projects on the Columbus Road Peninsula, left, and Scranton Peninsula. The business, a supplier to restau- ects to river safety. in large part by major investments The Cleveland City Planning Commission recently approved the change, to rants, grocery stores and other cusThe Vision for the Valley team did by Cleveland Metroparks, Canalway semi-industrial zoning with a pedestrian-centric overlay, but legislation hasn’t tomers, is strapped for space. The not dig deeply into land-use details Partners and other organizations. C R A I N ’ S C L E V E L A N D B U S I N E S S | S E P T E M B E R 3 - 9 , 2 018 | PA G E 21 been introduced to Cleveland City Council, which will make the final decision. brothers, who also own a meat com- on either the Columbus Road or “It is changing, and it is changing pany and an operation called Chef 2 Scranton Peninsula, said Arthur rapidly,” Kyle Reisz, Cleveland’s Chef Foods in Midtown, want to con- Schmidt, a project manager at OHM’s chief planner, told members of the solidate all three facilities under a office in Cleveland. planning commission. “There are single roof. Paul Volpe, a retired architect who several proposals today that are Th ough they could demolish is consulting with Siegel and his partworking their way through kind of buildings on the east side of Merwin ners on Columbus Road, said the design development, to convert to make way for construction, they timing of broad-based planning efsome of these existing buildings into instead have been scouring the re- forts and development proposals residential. … There (are) a few proj Proposed 90 gion for properties to renovate. A couldn’t be better, as an expanding ects that are looking at new con rezoning area suburban deal they were pursuing trail network on both sides of the rivstruction residential and mixed-use recently fell through, the brothers er links once isolated areas. down here.” said. “In my opinion, the Flats are the In February, real estate broker “We would like to stay in Cleveland next frontier,” Volpe said. “They conRico Pietro bought two buildings on if possible, because we love the city nect the blooming West Side neighColumbus Road for a redevelopand we want to … help to recreate the borhoods to downtown. And it’s just ment that will blend offices, apart- SOURCE: CLEVELAND CITY PLANNING COMMISSION city,” said John Catanese, the compa- marvelous stuff — and just water, waments and retail. Last week, he sold a majority stake in the property to through talks with the Greater to the south, and the Catanese prop- ny’s vice president. “If our buildings ter.” Realife Real Estate Group, a busy in- Cleveland Regional Transit Authori- erties to the north, the mill could be- and our property would be better vestor lured to the area by the site’s ty and the Flats Industrial Railroad. come the centerpiece of a substan- used as residential housing and boat Michelle Jarboe: michelle.jarboe@ docks, we’d be all for it.” crain.com, (216) 771-5437, @mjarboe location in a tax-advantaged Oppor- An unused rail spur cuts north of the tial development site. tunity Zone. “I think it has potential to be part buildings. The larger building, an 1880s “IRG would prefer to purchase the of a historic project … but it would structure at 1720 Columbus Road, property, but, it contends that if it take creativity and figuring it out,” once housed a saw manufacturer cannot, it will build around the Flats said Tom Yablonsky, a preservation Advertising Section and, later, a casket maker. Now it’s parcel, making it landlocked and un- expert and nonprofit executive who set to become housing, in a project developable,” an attorney for Brian helped establish the peninsula-wide that’s still taking shape. A novel Fournier, a stockholder in the fami- Cleveland Centre Historic District, restaurant, with a floral shop 94 tucked ly-owned Flats Industrial Railroad, which was listed on the National inside, will fill part of the first floor. wrote in a document filed in a Maine Register of Historic Places in early “I think it’s a cool street that a lot court in late May. 2014. of people don’t know about, and I That designation makes redevelMembers of the Fournier family think it’s going to do something in are mired in a legal fight over the opment projects eligible for valuable To place your listing in Crain’s Cleveland Classifieds, the next few years,” said Jordan Slo- handling and future of the railroad, federal and state historic tax credits. Preservation-minded property 90sar, the owner and operator of the which controls a few miles of tracks contact Ainsley Burgess at 313-446-0455 as-yet-unnamed business and the and hasn’t had a paying customer in owners also stand to benefit from the 294shut- a year. former general manager of the city’s rezoning proposal, which tered Black Pig in Ohio City. Brian Fournier has asked a judge would lift height limits in the district or email ainsley.burgess@crain.com An affiliate of Beachwood-based to appoint a receiver to manage and from 115 feet to 175 feet. Integrity Realty Group recently pur- liquidate the business. His attorney That increase will boost the potenchased a row of buildings at 1772- didn’t return a phone call. Other tial value of conservation easements, 355 ENVIRONMENTAL CONSULTING BUSINESS OPPORTUNITY 1800 Columbus Road and land290 family members couldn’t be reached financing tools that permanently tucked behind them, public records for comment. protect historic structures, and, in show.88Integrity founder Dan Siegel, The railroad’s major client, the exchange, provide owners with tax Selling Your Business? an apartment owner and developer, Grain Craft mill on the west side of breaks. Easements in Cleveland typFree Market Analysis would not say much about the proj- the peninsula, closed last summer. ically are tied to the façade of the No Upfront Fees ect he’s planning with partners Executives at Grain Craft’s head- building and to lost development 294 quarters in Tennessee didn’t re- rights, which are based on zoning. 25 Years of Experience Damien Isabella and Rich Brown. 55 www.empirebusinesses.com XXXrequests about “Right now, there’s some tenants spond94to interview John and Jim Catanese, who own 440-461-2202 in the buildings,” Siegel said. “We the future of the company’s proper- Catanese Classics, said they have bought it more on a speculative ba- ties, on both sides of Merwin Ave- made overtures to Grain Craft but XXX XX sis, so we don’t have anything firm nue. haven’t heard back. 80 yet.” This spring, the brothers put their Real estate brokers expect the Court records indicate that Siegel buildings, including silos that loom seafood complex at 1600 Merwin and his partners are trying to amass over the river, to be formally listedXX Ave. up for sale, in a package that additional land on the peninsula, for sale. Flanked by a city parking lot also includes buildings across the

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PEOPLE ON THE MOVE

Advertising Section

To place your listing, visit www.crainscleveland.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

ADVERTISING / MARKETING

FINANCIAL SERVICES

NONPROFITS

Innis Maggiore

Ancora

Three Arches Foundation

Innis Maggiore, the nation’s leading positioning ad agency, has hired Martha Belden to be the agency’s director of public relations. An industry veteran, Belden has worked with organizations of all sizes from startups to Fortune 500 companies such as Microsoft, Liberty Mutual Insurance Group, Expedia and Amazon. Belden will lead Innis Maggiore’s public relations services which include competitive analysis, strategic planning, media relations, influencer engagement and share of voice measurement.

Ancora is happy to announce that Mr. Tim McCormick has joined the firm as a Director of Institutional Sales. Tim has many years of experience in sales leadership, marketing and distribution of mutual funds and separately managed accounts. Since he began his industry career in 1987, Tim has served in a number of capacities with more than 25 years spent at BNY Mellon Investment Management in NY. Tim earned a Bachelor of Arts degree in Economics from the State University of New York at Potsdam.

Mary Anne Crampton has been elected board chair of Three Arches Foundation, a community-focused grant making foundation. Civically active in several local and regional initiatives, Crampton is principal of MACC Partners, a consulting firm that specializes in organizational planning and strategic alignment in the nonprofit sector. She co-founded and was executive director of LakewoodAlive and recently concluded nine years of service as trustee and officer at St. Edward High School.

BANKING

HEALTH CARE

REAL ESTATE

Fifth Third Bank

NOMS Healthcare

Welty Development

As Senior Vice President, Senior Commercial Banker, Nick Buzzelli leads a team of seasoned commercial bankers who provide solutions to middle-market clients throughout Northeast Ohio. He previously served as Akron President. Having earned a bachelor’s degree from The University of Akron, Nick has more than 15 years’ experience in commercial banking, credit, asset-based lending, capital markets and derivatives. He serves on the boards of the Greater Akron Chamber and United Way of Summit County.

NOMS welcomes Justin Coran, PhD as chief data science and analytics officer. His addition is part of a move to deepen data efforts with an investment into new artificial intelligence technology. Coran’s role will take NOMS’ population health to the next level both operationally and clinically. Tasked with creating new advanced analytic products including AI, machine learning and risk stratification, his work will further refine paths to best patient outcomes. Coran comes to NOMS from University Hospitals, where he helped build a data science program that informed operations.

Tom Charek was named President, Welty Development, a full-service developer focused on multifamily, corporate, and healthcare real estate projects. In his new role, Charek will build out the real estate portfolio and develop properties through joint venture partnerships. In addition, he will provide professional services in Program Management, Owner Representation, Finance and Fund Sourcing. Tom Charek has spent over 20 years in the commercial real estate industry focusing on development.

TECHNOLOGY

MCPc

ENGINEERING / CONSULTING

Brian Tenney has joined Karpinski Engineering as Senior Commissioning Project Manager. He will help clients achieve their goals for building performance and systems operations. Tenney is an expert in troubleshooting and optimizing HVAC systems, and has helped clients achieve energy savings while maintaining comfort and code compliance. He has worked with clients in the healthcare, education, industrial, and corporate sectors. Learn more at karpinskieng.com

NEW GIG? Preserve your career change for years to come.

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Karpinski Engineering

Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

MCPc promotes Genese Sarratt to Director of Community & Employee Engagement. Genese brings nearly 15 years of corporate experience to the role and will focus internally to promote a more employee-centric culture that advocates effective communication, collaboration, career pathing and development. Externally, she will engage with the community at-large and governmental, educational, and community development organizations to create new career paths and talent pools for MCPc and its clients.

HOTELS

From Page 1

in court in Cuyahoga County after the lender filed to foreclose in 2019. In the end, the precipitous drop in demand during the pandemic so far has not pushed a plethora of hotels into the hands of lenders. Sangree said that when the pandemic hit in spring 2020, no one in the industry knew how things would play out. “We’ve found lenders have been more willing to be flexible than they were in 2008 (when the Great Recession hit),” Sangree said. “However, some owners are saying they are agreeing to pay fees to lenders for forbearance. But that does not mean they will not go into foreclosure later.” The other unexpected factor was the willingness of the Small Business Administration, first under former President Donald Trump and now under President Joe Biden, to provide Paycheck Protection Program (PPP) loans to keep employees on the job. Multiple analysts say that has helped the industry avoid worse dislocation. Another sign of the lodging market’s slowly improving outlook is that some hotels are selling again, albeit at well-discounted prices. To look at the bullish case for the hotel business, consider the viewpoint of Chris Patel, president of Itasca, Ill.-based NexGen Hotels. His company, through an affiliate, just bought the Four Points by Sheraton Cleveland Airport on West 150th Street. NexGen paid $3.8 million for a six-story, full-service hotel that the seller paid $4.8 million for less than seven years ago. “That property will be 70% occupied the next four days,” Patel said in a phone interview, referring to June 17 through 21. “Activity has increased dramatically since leisure travelers are active again after getting COVID-19 vaccinations.” NexGen delayed the purchase of the Four Points for a year because of the pandemic’s advent, he said. However, he felt strong enough about renewed activity to proceed with the deal, which NexGen bought at a big discount. He is less concerned about the demise of the I-X Center for events. He feels the bigger factor was the surge in new hotels downtown and regionally

Although the ownership has not been changed, the online advertising notes about the auction say the properties are lender-controlled and institutionally owned. However, Taconic has not offered at auction other properties it bought at the same time, such as identical TownePlace and Courtyard properties in Westlake built at almost the same time. Mike Schlichtman, a director for the Paramount Lodging Advisors of Chicago, which is marketing the Taconic properties in Middleburg Heights, declined comment on the offering. There may be good reason for shedding the properties in Middleburg, part of the region’s airport market, and retaining its others. The first whiffs of better times as vaccines and the economic recovery take hold may help other properties, though not the ones in the airport market. David Sangree, president of the hotel consultancy Hotel & Leisure Advisors LLC of Lakewood, said in a phone interview that he believes the closing last year of the I-X Center in Cleveland signals a challenge for the airport market that will extend beyond the pandemic. “With air travel beginning to improve, you can expect the airport market to improve over time,” Sangree said. “However, with the closing of I-X as an event center, the future in that market is more uncertain and may affect demand for those properties.” Data from online hotel provider CoStar indicate the impact already is clear. Traditionally one of the region’s strongest hotel markets, along with the Beachwood and eastern suburbs, the airport market’s occupancy now is only a little better than the market as a whole, at 42% compared with 39% for all of Cleveland, according to CoStar. Another case of picking shots is apparent closer to the airport. That’s where an affiliate of Ceres Enterprises of Westlake is pursuing the multimillion-dollar conversion of the former NASA DEB (Development Engineering Buildings) to a hotel and apartments. Meanwhile, less than a quarter-mile away, another Ceres-linked property, the Hilton Garden Inn Cleve- “WE’VE FOUND LENDERS HAVE BEEN land Airport on Em- MORE WILLING TO BE FLEXIBLE THAN erald Parkway, on May 28 was sued for THEY WERE IN 2008.” foreclosure by its — David Sangree, president, Hotel & Leisure Advisors lender after defaulting on payments due under a $14 before the Republican National million lender. Convention in 2016, which saturatClearly, a new hotel is worth ed the market. more than one nearly 20 years old However, Patel pointed to the in the best of markets. And even fundamentals of the Cleveland more so in one of the worst in gen- purchase, which bolstered his conerations. fidence during uncertain, though Two Fairfield-flagged hotels, in upward-trending, times. Avon and Beachwood, have gone “We paid less than $50,000 a key into foreclosure, according to in that transaction,” Patel said. “It’s Cuyahoga County and Lorain far less than replacement cost. We County court records. just finished a hotel in another city However, the biggest troubled for $140,000 a key.” hotel properties were in jeopardy It may be several years before before the pandemic, according to the Cleveland market fully recovTrepp, a New York City-based re- ers, he said, but it may be a hard porting service that tracks securi- deal for the company to ever surtized and other commercial mort- pass. But that’s the kind of longgages. term view demanded in times like Those are, respectively, the those the pandemic has produced DoubleTree by Hilton in Beach- in the region and nation. wood, already lender-owned, and the DoubleTree downtown on Stan Bullard: sbullard@crain.com, Lakeside Avenue, which is pending (216) 771-5228, @CrainRltywriter

22 | CRAIN’S CLEVELAND BUSINESS | JUNE 21, 2021

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EMPLOYMENT

From Page 1

The ELUA, passed in January, applies to discrimination claims filed against employers on or after April 15, which is when the law took effect. Changes made by the ELUA have been in the works for years — for at least three general assemblies — pushed in part by Ohio Chamber of Commerce as one of many efforts to support the state’s pro-business identity. “How it will affect employers in Ohio is it will be more efficient and cost-effective to address and potentially resolve workplace discrimination disputes since plaintiffs, or employees, must first raise claims with the Ohio Civil Rights Commission,” said Jason Dejelo, senior counsel at Calfee, Halter & Griswold. That’s the hope, at least, for companies on the defense side. By some estimates, it could cost as much as $175,000 to $250,000 to defend an employment lawsuit that goes to trial. Cases like these are typically settled before moving that far. Nonetheless, large employers may want to defend themselves lest they become known as easier targets for claimants. “In the labor and employment world you rarely get a seed change in the law like this. Things have been this way (before ELUA) for 30 or 40 years,” said Chaz Billington, an attorney with Vorys, Sater, Seymour and Pease. “This is a massive overhaul of an archaic framework. The fact Ohio modernized the law, that’s big.”

Key changes under the Employment Law Uniformity Act Statute of limitations

For court claims, the statute of limitations was reduced from six years to two years. The bill also includes new administrative exhaustion requirements, which in turn extend the amount of time an individual has to file with the Ohio Civil Rights Commission from 180 days to two years.

“New” affirmative defense (codification of FaragherEllerth defense)

The bill codified an affirmative defense for employers for hostile work environment claims. The defense is available for employers who can show it exercised reasonable care to prevent or promptly correct any sexually harassing behavior, and the claimant unreasonably failed to take advantage of any preventative or corrective opportunities provided by the employer or to otherwise avoid harm.

Limited supervisor liability

Generally, supervisors now are excepted from liability, though certain exceptions exist.

Simplified age discrimination approach

The bill simplified age discrimination suits by eliminating the multiple causes of action into one. This was previously a source of confusion for employers and employees.

Tort actions and damage caps

The bill characterizes discrimination claims as tort actions, which means that public policy tort actions maintainable under Ohio’s Civil Rights Law must be brought within the scheme of the new law, and discrimination claims now are subject to the damage caps specified under Ohio tort law.

SOURCE: CAROLYN DAVIS, TAFT STETTINIUS & HOLLISTER

Filing with the OCRC Indeed, among key changes made by the ELUA is a requirement for complainants accusing their employers of discrimination to first file a claim with the Ohio Civil Rights Commission (OCRC). This mirrors requirements in federal employment suits whereby complaints must first be filed with the Equal Employment Opportunity Commission before other legal actions can be taken. Previously, a state claim in Ohio could be taken directly to court, which catches many by surprise when that’s the first they’re hearing of a suit. Under new laws, plaintiffs must first file their discrimination claim with the OCRC, which can help resolve the issue before it gets to court. This is known as a requirement of administrative exhaustion. And it’s what defense firms say may reduce litigation for employers sig-

Brian Spitz | CONTRIBUTED

Statute of limitations

Another key difference under the ELUA is a change in the statute of limitations for bringing civil actions for employment discrimination claims, which now is reduced to two years from six. The prior six-year statute of limitations is believed to have been the longest for any state in the country. Two years is more standard. Additionally, the statute of limitations to file a claim with the OCRC was increased to two years from 180 days. The narrowed window for bringing a claim is considered a win for employers, who will no longer have to keep employee records for the typical time. “THIS IS A MASSIVE OVERHAUL triple “Having an employer OF AN ARCHAIC FRAMEWORK. worry whether you are going to bring a case for six years is THE FACT OHIO MODERNIZED completely, in my opinion, THE LAW, THAT’S BIG.” out of the realm of reality,” said Carolyn Davis, a part— Attorney Chaz Billington ner with Taft Stettinius & Hollister. nificantly. At first blush, this might seem like The OCRC has 60 days from a a downside for workers. claim being filed to issue a right to Christina Royer, co-chair of the sue to the plaintiff. If that letter is Ohio Employment Lawyers Associnot provided within that timeframe ation, said plaintiff firms generally plus 45 additional days (or 105 days have been on board with that in total from a complaint to the change. Cases are best when plainOCRC), the plaintiff may file its tiffs bring them within a couple suits regardless of any OCRC action. years because memories can This timeline gives employers a change with time, she said. heads-up about the case before it According to bill testimonies, one goes to court and increases the person voiced opposition to this potential for a resolution without change in conjunction with the ELcourts getting involved. UA’s establishment of an affirmative

defense for hostile work environment sexual harassment claims that do not result in an adverse “tangible employment action,” as defined by the statute. That person was Camille Crary, director of legal services and policy for the Ohio Alliance to End Sexual Violence, who testified that HB 352 might inhibit survivor safety and possibly lead to a trend of victim-blaming. The Ohio Legislative Service Commission provides a rundown of other changes in employment law established by the ELUA, which is available online.

‘Nobody knows for certain’ A flurry of lawsuits were filed just before the ELUA changes went into effect. A major player there is the Spitz Law Firm, which according to Brian Spitz filed approximately 600 discrimination or wrongful termination cases in roughly three weeks before April 15. Their targets include companies ranging from University Hospitals Health System Inc. and Ford Motor Co. to AutoNation Ford Westlake and Rainbow International of Cleveland, among many others, according to court filings. Spitz sees a lot of benefits for employees with the changes made under the ELUA. As for one example, which he feels may be overlooked by defense firms, he points to how the ELUA changes supervisor liability in dis-

crimination claims. Previously, an individual supervisor could be directly named in a discrimination case. The new law holds that individual supervisors or managers can’t be held liable for employment discrimination. This is something else the Ohio Chamber of Commerce wanted to see changed. Yet, Spitz notes there are still ways to name specific individuals. This includes cases in which an individual is also the employer and situations in which an individual is being charged with sexual harassment. “So if you have a sexual harasser or racist coworker or boss engaging in that conduct, they are still liable for their own conduct,” Spitz said. If the new statutory scheme is so good for plaintiffs and the firms representing them, then why file hundreds of cases before these new laws went into effect? Spitz said this comes down to the simple fact that these news laws are just so new. “Nobody knows for certain everything is going to work 100% like we think it is,” he said. “There’s no harm to file sooner, but there is potential harm if we don’t.”

Overwhelming the OCRC? A concern some plaintiff groups have raised is whether the OCRC will be able to handle a surge of claims that may come its way under these new laws without expanded resources. The idea is OCRC might fall behind with responding to claims, which could lead to some plaintiffs waiting two to three months to go to court under the new timeline. An increase to the OCRC budget could certainly help, said Mary Turocy, a lobbyist and director of public affairs and civic engagement for OCRC. But she indicated there is no concern at this time of managing an increased workload. Turocy said between 82% and 85% of claims that do come before OCRC in a given year are settled before going to court. The OCRC, she said, has been in favor of the changes made under the ELUA, emphasizing the commission would never support “anything we felt created an unfair playing field for the citizens of Ohio.” Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

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