Crain's Cleveland Business, June 24, 2024

Ohio is a solar economy leader

Cleveland and Akron are among top U.S. cities for green energy investment

By Kim Palmer

On average, Cleveland has 166 days of sun each year, well below the national average of 205 days. It may seem counterintuitive, then, that the region is emerging as one of the country’s leading solar energy investment areas.

Yet Cleveland and Akron, along with three other Ohio cities, account for one- fth of Bloomberg’s American Sustainable Cities, a sign that Northeast Ohio is “really leading on national climate action,” said Gina McCarthy, managing co-chair of “America Is All In,” a coalition advocating for the acceleration of the clean energy transition supported by Bloomberg Philanthropies.

McCarthy, a former White House national climate adviser and EPA administrator, led a June 5 panel at the Cleveland Foundation that included Cleveland Mayor Justin Bibb, Akron Mayor Shammas Malik, Cuyahoga County Executive Chris Ronayne and Michael Jeans, president and CEO of Growth Opps and GO Green Energy Fund.

“I can tell you that right here in Cleveland is where change is going to happen,” McCarthy added.

e Cleveland Foundation is leading the way, emerging as one the largest environmental granters in the state. Last year, the organization distributed $5 million to support climate action and accelerate clean energy in resilient neighborhoods. Under the leadership of new CEO Lillian Kuri, it also vowed to sunset all investments in oil and gas.

See SOLAR on Page 21

UH takes step in bold AI initiative

Announces plans to deploy tech company Aidoc’s platform aiOS

By Paige Bennett

University Hospitals is taking a major step in its arti cial intelligence strategy.

e health system announced plans to deploy clinical tech company Aidoc’s platform aiOS across 13 hospitals and dozens of outpatient locations.

e move signals “a signi cant leap forward in leveraging cuttingedge technology for superior patient outcomes” and will provide UH access to 17 FDA-cleared AI algorithms for triage, quanti cation, care coordination and immediate access to critical patient information, the health system says.

“We have been using and working with di erent companies in the AI space for many years,” said UH Chair of Radiology Dr. Donna Plecha.

Adult-use marijuana buyers may face

HIGH PRICES

By Jeremy Nobile

While Ohio could be just a couple weeks out from the awarding of dual-use licenses and the state’s rst non-medical marijuana sales, most op-

erators are mum on what prices could look like for products at the retail level.

Crain’s asked several companies to weigh in on what dispensary prices on adult-use products might look like in the beginning and how those might com-

pare with medical prices today.

Each declined to share gures but opted to comment in more general terms — though some speculated in more detail than others.

See PRICES on Page 20

In the past, the Cleveland health system has partnered with tech companies and helped develop and pilot di erent tools, she said. e AI software at the center of this partnership, which UH began rolling out at the start of the year, helps radiologists detect problems that may have otherwise gone unnoticed.

When a patient undergoes a CT scan for pain or an injury, the AI platform analyzes the scan with its comprehensive algorithms. If the software nds something suspicious or an issue that requires urgent attention, it brings that patient higher up on a radiologist’s patient list, Plecha said.

It helps provide faster diagnosis and treatment of acute conditions, including pulmonary embolism and vertebral compression fracture, according to the health system.

Klutch Cannabis wins two area dispensaries

Akron-based cannabis company said it has reached a settlement with the state that resolves years of litigation

Jeremy Nobile

Klutch Cannabis fought the law and won — more or less.

The vertically integrated cannabis company with headquarters, cultivation and processing facilities in Akron said it has reached a settlement with the state of Ohio that resolves years of litigation and, as a result, enables the business to open two new marijuana dispensaries in Northeast Ohio.

“We would like to express our sincere gratitude to the leadership and staff of the Division of Cannabis Control, who have endeavored to amicably resolve these cases despite undertaking a mountain of work readying the state for its new adult-use program,” said Klutch founder and CEO Adam Thomarios in a statement. “We are thrilled to be able to finally put these cases behind us and are ready to get to work preparing these stores for our patients and future adult use customers.”

Tom Brockman, a spokesman for the Ohio Department of Commerce, verified that Klutch has been awarded two provisional dispensary licenses.

One of these two shops, according to Klutch, will be in downtown Cleveland at 300 Prospect Ave. E.

The long-vacant storefront there was once home to Record Rendezvous, a legendary music shop that occupied the space between 1945 and 1987. The shop’s owner, Leo Mintz, is credited with helping coin the term “rock ‘n’ roll,” thereby playing a role in establishing Cleveland’s heritage as a rock ‘n’ roll city.

Klutch currently operates marijuana dispensaries in Lorain and Canton that have been operating under the brand name “The Citizen by Klutch.”

Its future Cleveland store, though, which is a stone’s throw from East 4th Street and Rocket Mortgage FieldHouse, will be the most high-profile shop in the Klutch footprint.

Thomarios describes it at Klutch’s future flagship store, noting its design will pay “homage to its unique musical heritage.”

“Our Cleveland location is located right in the heart of downtown Cleveland’s entertainment district and is a historical landmark with an amazing cultural connection to the city and region,” said Klutch vice president Pete Nischt. “It’s a shame that it’s been vacant for so long, but we are on a mission to restore it to its former glory. We want this next iteration of the building to honor its past while being the best representation of our brand, company and vision thus far.”

Klutch said its other new store will be at 10650 Northfield Road in Northfield Village, which is across the

“uniquely positioned to serve Northern Summit County and surrounding communities.”

“It’s

a shame that it’s been vacant for so long, but we are on a mission to restore it to its former glory. We want this next iteration of the building

to honor its past while being the best representation of our brand, company and vision thus far.”

Pete Nischt, Klutch vice president

The first lawsuit dates back to the state’s inaugural round of medical marijuana dispensary licensing, a process known as RFA I. (RFA stands for “request for applications.”)

Applications for RFA I opened in 2017, and permit winners were selected in that round via a scoring system that rated applications on a series of criteria.

Klutch challenged scoring discrepancies between it and other applicants as it appealed the results on the application for its proposed Akron shop.

Klutch’s other two suits stem from the state’s second dispensary application process, or RFA II.

meet particular criteria to be eligible, but winners were ultimately selected through a drawing conducted by the Ohio Lottery Commission.

“In one case, we challenged a rule that, as applied, prevented the award of a license. That rule has since been reinterpreted to match the controlling statute,” Nischt said. “In the other case, we challenged what we felt was the non-application of a requirement that resulted in another applicant winning a license at a site we applied on.”

Klutch’s suits were filed against the board of pharmacy as that agency was previously the primary regulator for dispensaries under the Ohio Medical Marijuana Control Program. All other business activity was regulated by the Ohio Department of Commerce.

At the beginning of 2024, the state removed the board of pharmacy as a cannabis regulator and flattened the regulatory dynamic from two agencies to one. The state’s primary marijuana industry regulator is now the Division of Cannabis Control, or DCC, which operates within the commerce department.

As far as how this settlement was achieved, Nischt said the transition to DCC “provided all involved with a good opportunity to take a step back and evaluate everything.”

“Despite how busy they were, the DCC made time to try to resolve these issues with us. Our settlement resolved all three cases and resulted in the award of two licenses,” Nischt said. “At the end of the day, we are satisfied with the outcome, appreciative of the time spent working through these issues with us, and are excited to show these new locations what we are made of.”

“Since the (DCC) was established in January, it has been working to revise rules to be more in line with the evolving industry it regulates,” said Brockman regarding the resolution with Klutch. “These settlements are a result of rules changes that would have made continuing litigation impractical.”

Klutch must complete buildouts for its new shops in Cleveland and Northfield Village ahead of regulators allowing them to serve the public.

Nischt said the expectation is that the Cleveland store will come online first but that the company expects both to be operational in the first quarter of 2025.

MGM Northfield Park

and

The settlement enabling these new dispensaries follows three lawsuits that Klutch brought against the Ohio Board of Phar-

macy challenging the results of its processes for awarding dispensary licenses. These suits were related to applications to operate retail shops at locations in Akron, Cleveland Heights and Euclid.

RFA II applications opened in 2021. However, the state switched its approval process from a scoring dynamic to a lottery system — in large part due to litigation that resulted from RFA I. Applications still had to

Meanwhile, in conjunction with the announcement about this settlement and its new dispensaries, Klutch said it will rebrand its retail operation from “The Citizen by Klutch” to simply “Klutch Cannabis.” The company said more details about this rebrand will come in the fall as official rules for the adult-use program are finalized.

street from the

racino

The sales oor of a Klutch Cannabis dispensary in Canton. | KLUTCH CANNABIS

300 Prospect Ave. E. in Cleveland is the former longtime home to legendary music shop Record Rendezvous. | COSTAR

Cleveland Museum of Art receives $25 million gift

By Paige Bennett

e Cleveland Museum of Art announced a $25 million gift from e Kelvin and Eleanor Smith Foundation on June 19. at includes $15 million for the museum’s exhibitions program, $2.5 million for the landscape master plan, $5 million to fund the curator of decorative arts position permanently and $2.5 million toward the renovation of CMA’s north lobby.

e funds come through a challenge gift from CMA board chair Ellen Stirn Mavec via the foundation. Mavec, who also is chair of e Kelvin and Eleanor Smith Foundation, developed the challenge to establish funding for central initiatives laid out in the museum’s strategic plan. Mavec, a longtime CMA trustee, was named board chair in 2022.

“ e Cleveland Museum of Art has always been a source of inspiration for my family, and that sentiment has only grown under Bill Griswold’s leadership,” Mavec said in a statement. “It is our sincere honor to support the

CMA’s curators, exhibitions, gardens and space — and our profound hope that others will be inspired to join us.”

CMA says its exhibition program is crucial to drawing in new audiences and furthering scholarship in art history while sharing stories that cannot be told solely through the museum’s permanent collection.

Meanwhile, support for the landscape master plan will help pay for repairs, updates and maintenance to the museum grounds and some earlier elements of CMA’s Fine Arts Garden. e garden, dedicated in 1928, is home to Chester A. Beach’s “Fountain of the Waters” and Auguste Rodin’s “ e inker.”

Support for the curator of decorative arts position was announced by CMA in May as part of $15 million in gifts to back a slew of curatorial and administrative positions and initiatives. It will support the curator’s e orts in exhibitions, research, scholarship and outreach, according to the museum.

Finally, the chair’s challenge will contribute to the renovations of the Horace Kelley Art Foundation North Lobby and Susan M. Kaesgen Education Gallery and Lobby. In April, CMA unveiled plans to give its lobby areas a facelift that included updated infrastructure and technology. CMA is also planning to create a space where visitors can engage with the museum’s Education Art Collection.

e lobby renovation also has received support from donors such as Jon and Jane Outcalt, James and Susan Ratner and the Sauerland Foundation. e chair’s challenge resulted in full funding for the project.

“ is generosity and leadership is at once humbling and inspiring,” said William M. Griswold, director and president of the CMA. “Support from Ellen and e Kelvin and Eleanor Smith Foundation empowers us to make huge strides toward realizing some of the most important and ambitious goals of our strategic plan and creates a wave of momentum for our philanthropic endeavors.”

Melt les for Chapter 11 bankruptcy

By Jeremy Nobile

Melt Bar and Grilled has led for Chapter 11 bankruptcy protection following ongoing challenges that have resulted in some lawsuits from landlords going after the business for allegedly unpaid rent at some of its stores.

In its June 14 bankruptcy ling, Melt lists between 100 to 199 creditors, estimated assets between $500,001 to $1 million and estimated liabilities of $1 million to $10 million.

Chapter 11 bankruptcy allows a company to remain in business but restructure its nances and operations.

Under income, Melt reports a nancial loss of more than $4.8 million.

creditors totals more than $1.7 million.

“Navigating the restaurant industry in the post-pandemic world with growing economic issues is becoming increasingly di cult,” said Melt owner Matt Fish in an emailed statement.

“ e world and the industry are rapidly changing around us.”

e Chapter 11 bankruptcy

“gives us the best opportunity to reorganize and rebuild the company” Fish adds. “We continue to provide great food, great service and a great overall experience. We have been working tirelessly to improve all aspects of the Melt experience. Our loyal guests are excited and are sharing very positive comments.”

“I refuse to let the company I have put my entire life into for the past nearly two decades end.”

Matt Fish, Melt Bar and Grilled owner

Some of Melt's largest creditors include landlords, food suppliers Premier ProduceOne ($39,623) and e Sanson Co. ($32,362), Huntington Bank ($1.3 million), the Small Business Administration ($150,000), the Ohio Department of Taxation ($186,676) and employment law rm Haneline Pryatel Law ($105,732), among others.

Rent due, unpaid or part of a settlement that is reported by the company across its 20 largest

“We have not only survived but have thrived for almost 18 years in the Cleveland restaurant scene," Fish continued. “I refuse to let the company I have put my entire life into for the past nearly two decades end. I sincerely hope our sta , friends and loyal guests will continue to support us through this di cult decision and transition. I am truly excited for what the future will bring to Melt Bar and Grilled.”

Founded in Lakewood in 2006, Melt's restaurant enterprise expanded to Columbus — its initial foray outside Northeast Ohio — roughly 10 years ago. It added locations in the Short North in 2013 and Easton in 2014. e former closed in 2022 following a pandemic downturn from which the business never really recovered.

As Crain’s detailed earlier this year in a deep dive on the business, Melt has been on a downward slide since the pandemic.

“Ever since March 16, 2020, our brains keep saying that things will eventually go back to normal. Logic says things will go back to normal,” Fish told Crain’s in a January interview. “But it was the beginning of 2023, when we closed two stores, when we realized: things just aren’t coming back.”

When Melt’s Avon closure was announced in January, Fish said that the other Melt locations in Northeast and Central Ohio were doing well. It closed its Independence location, however, the following month.

Still open today are Melt’s restaurants in Lakewood, Akron, Mentor and Columbus via Easton. ere also are still satellite locations in place at Progressive Field and Case Western Reserve University.

Following the Independence closure, Fish emphasized that his plan was to keep the four locations left in its core footprint going — it does not directly operate those satellite locations, including the Cedar Point shop that closed this year as a contract there was no renewed.

While a Chapter 11 bankruptcy allows a company to remain in business during its reorganization, it's too soon to say whether any locations might be closed as part of that reorganization.

e Melt bankruptcy was rst reported by the Cleveland Business Journal.

Neighborhood Safety Fund announces ’24 grant recipients

By Paige Bennett

e Cleveland Neighborhood Safety Fund, established last year with $10 million in American Rescue Plan Act funds from the city of Cleveland, has announced its second round of grants to address the root causes of violence.

e fund, which exists at the Cleveland Foundation, will provide $1 million split between 14 community organizations to support projects and organizations focused on violence interruption and reduction, youth diversion and proactive mentoring and violence prevention, according to a news release issued Friday, June 14.   e rst round of Neighborhood Safety grants was announced in December.

Proposals with services in the Buckeye-Woodland, Central, Kinsman/Union Miles, Mt. Pleasant and St. Clair Superior neighborhoods were prioritized by the Neighborhood Safety Fund committee based on data on recent violent crime trends over the last three or more years, the release says.

One grant recipient, Proli c Achievers Academy, will use the funds to educate at-risk youth on sustainable lifestyles and farming, said Aharon Ben-Keymah, president and co-chair of the organization. Proli c Achievers Academy is youth-based agricultural training

center that also teaches students about coping mechanisms, reestablishing communities and building sustainable businesses.

Ben-Keymah said in a phone interview with Crain’s that the goal of the organization’s youth summer employment program is “to get atrisk youth that are experiencing gun violence and di erent things and show them how farming can be a proactive way of handling daily situations.”

New York rm snaps up two storage centers for more than $20M

If there were any doubt about the self-storage business being prized — after a boom in development and the rise of REITs in the space — the sale of two properties in Northeast Ohio for a total of $22 million will erase it.

e new owner of both the Extra Space Storage locations in Cleveland and Euclid is Related Fund Management, an investment adviser with billions under management. Tax bills for the just-acquired properties go to its o ce on the 83rd oor of 30 Hudson Yards, one of New York City’s skyscrapers. Both carry the Extra Space Storage brand.

served as an industrial building and was previously home to a Super Kmart.

e other property is at 3005 Chester Ave. which, prior to conversion, had served as home to several businesses including a Jakprints location. e three-story structure was originally home to a Cadillac dealership — a decorative tile on the 1916 vintage building bears a Cadillac insignia. It has 93,000 square feet of storage space, according to CoStar, and was acquired for $10.8 million.

The new owner of both the Extra Space Storage locations in Cleveland and Euclid is Related Fund Management.

One of the properties Related Fund acquired is the mini-warehouse at 1200 Babbitt Road in Euclid, which was snagged for $11.2 million. It consists of 216,000 square feet and sits on 22 acres, according to CoStar, the online realty data provider. It previously

Both properties were converted to self storage facilities in 2020 and 2019, respectively. Both were redeveloped to that use by investor groups led by McCormack Development of Fisher, Indiana. e acquiring companies, F4 Babbitt LLC and F4 Chester LLC, were both incorporated in Ohio with James Kraus, the chief nancial o cer of Related Fund Management, as the new owner’s representative.

e run-up in values re ected by the sales are signi cant and may o er taxing authorities additional property taxes. Each property was assigned a market value of $4 million for tax purposes by the county, according to online county records.

2024 grantees and their projects:

◗ Brenda Glass Multipurpose Trauma Center: Trauma Recovery on the Beat ($82,100)

◗ Burten, Bell, Carr Development Inc.: Neighbor to Neighbor (N2N) Resident Mediation Program ($78,000)

◗ Civilians Against Violence: Community Policing Neighborhood Safety Program ($85,000)

◗ Cleveland Metropolitan School District: Safe Passages ($167,400)

◗ Cleveland YPAR (Youth Participatory Action Research) (Black Lives Matter Cleveland as scal agent) ($25,000)

◗ MetroHealth Foundation Inc.: Hospital Responders Program for Violence Prevention ($75,000)

◗ Nerve DJ Institute: “Harmony in Cleveland: Beats, Rhymes, and Unity” ($35,000)

◗ Passages Connecting Fathers and Sons Inc.: Cognitive Behavioral Intervention Employment Program for Moderate- to High-Risk Probationers ($100,000)

◗ Peel Dem Layers Back: Cope Dealer Program ($37,500)

◗ Proli c Achievers Academy: The POD Youth Summer Employment (YSE) Program ($75,000)

◗ Renounce Denounce Gang Intervention Program Corporation: Case Management for Youth & Young Adults Who Experience Gang & Gun Violence in the City of Cleveland ($50,000)

◗ Safety Unit — Partnership between Ward Wide Education (WWE), Children at Play Edutainment (CAPE), and Man to Man (United Black Fund of Greater Cleveland Inc. as scal agent) ($130,000)

◗ Teaching Young Women in Society Truth: Saving Gang Involved At Risk Females Through Arts Education Events ($35,000)

◗ Writers in Residence: Communitybased Mentoring for Justice-involved Youth ($25,000)

Stan Bullard

MICHAEL COLLEIR/GCP

The building at 3005 Chester Ave. in Cleveland, top, and the Extra Space storage property on Babbitt Road in Euclid, above, were acquired by a New York private equity fund. | COSTAR

M. BIBB Mayor of Cleveland

Growing the Workforce Pipeline

BASILE OEKEN President Engage! Cleveland

MALIK Mayor of Akron

SHANA

JACOB DURITSKY

ASHLEY

SHAMMAS

Prepare to be bold on Burke Lakefront Airport

If you’re a longtime Clevelander, there’s a good chance you’ve driven by Burke Lakefront Airport and asked yourself, “Why is this still an airport?”

And if you’re relatively new to town and make your way to the same spot, it’s completely reasonable to think, “ ey use this land as an airport?”

A decision on the future of Burke, which opened in 1947 and for a good portion of the last 25 years (or more) has been seen as a candidate for a new use, is coming soon. Burke still has some important functions, in particular for private jet tra c and medical emergency ights by the region’s health centers. ere are still tenants at the airport, too. Its proximity to downtown Cleveland o ers great convenience for those who use it. But it’s pretty tough to argue in 2024 that an airport represents the best use for Burke’s nearly 450 acres along Lake Erie. As the city reimagines its transportation, infrastructure and economic priorities, the fate of Burke is a critical decision — and opportunity — that warrants careful consideration. Ultimately, we hope the city can nd a way to move on from the airport and make more productive use of the land.

Back in 2021, as a candidate for o ce, now-Mayor Justin M. Bibb said he wanted to close Burke as an airport. ose kinds of pronouncements are relatively consequencefree as a candidate. Still, to his credit, Bibb’s administration has stayed on top of the issue and is on pace by the end of summer to release two studies that look comprehensively at the issue of closing Burke.

ere are two studies in part because, as you might suspect, it’s complicated (not to mention expensive) to close an airport, even

a small one such as Burke. One study will look at both the regulatory issues involved with a potential closure and the technical/ environmental hurdles to doing anything on the land ll beneath Burke’s runways.

e other will assess Burke’s current economic impact against other potential uses — most frequently mentioned as a park or some combination of transportation, recreation and commercial development that would enliven the lakefront while expanding public access to it.

Signal Cleveland reported June 4 that the administration “has not yet made those studies available to the public” and that Cleveland City Council “had not yet received an update from the administration

on the airport’s future.”

Je rey Epstein, City Hall’s chief of integrated development, told Signal, “We have not made a decision yet on Burke. We’re still kind of evaluating nal drafts of the studies that have come in.”

We’re eager to see the contents of the studies. It’s already clear, though, that the limited commercial service and relative under-use of Burke make it a strong candidate for a reallocation of resources in a city that, nally, is looking to more fully embrace its waterfront.

ere have been e orts over the years to bulk up the area around Burke, starting with a 2004 Waterfront District Plan under then-Mayor Jane Campbell. Longtime Mayor

Frank Jackson, like Campbell, favored retaining Burke as an airport but said he was open to surrounding development — which didn’t happen in a meaningful way. ( e less said about a Chicago developer’s 2020 proposal for an outlet mall near Burke, the better.) Don’t look for any kind of immediate transformation if the decision is made to close Burke.

e rst order of business would be for the city to make its case to the Federal Aviation Administration for closing the airport. at’s not easy, and there will be interests pushing back on a closure. Even if the FAA grants permission, it likely would take years to bring operations to an end. But that’s OK. e city has time and can play a long game here.

e “Shore-to-Core-to-Shore” tax increment nancing district passed earlier this year to facilitate a downtown makeover will allow the city to tap increases in property taxes downtown over a long period of time. e measure is expected to raise anywhere from $3.5 billion to $7.5 billion over four decades for targeted public infrastructure investment in both downtown — the core of the city — and the river and lakefront shores. Not included in that calculus is Burke, obviously, and the land that’s currently home to Cleveland Browns Stadium, which could become available for new use if the football team winds up building a domed stadium in Brook Park.

ere are a lot of “ifs” there, but Cleveland is trending toward having real options, over the long haul, to create a more vibrant, enticing and equitable urban lakefront that raises the quality of life for everyone who lives and works in the city.

Confusion on employee bene ts can a ect workplace morale

If you think employee bene ts can be confusing, you’re not alone.

Two-thirds of American workers report they need more education about their bene ts, and one in four workers say that they don’t understand out-of-pocket costs or how to interpret information supplied by their health plan provider. is confusion can a ect morale in the workplace and, ultimately, productivity.

dar with monthly activities built around the employee bene ts plan and advertise and market the sessions consistently. is can include webinars or live meetings and can include employee input about topics and commonly asked questions.

One challenge is that human resource departments are juggling so many priorities that employee education often gets deferred. An additional challenge is that when employees have questions about their bene ts, they ask their equally confused coworkers, and the game of “telephone” begins. e solution is to place employee education as a top priority — today.

Here are some best practices:

1. Build it and they will come

Take the time to create a year-long calen-

A large construction company in Cleveland introduced a series on health care consumerism by illustrating multiple scenarios for employees and cost transparency options. eir high-deductible health plan tripled in enrollment over the last two years by educating their employees and incentivizing them with health savings account contributions. A midsize manufacturing company created a virtual “passport” for employees to enter a prize drawing after they attended a certain number of employee bene t education sessions.

Lean on your broker to create a schedule for the year on topics that can improve employee understanding about bene ts and ask them to provide options for outside speakers.

2. Internal website

NFP creates a microsite called a landing page for all our clients, large and small. A microsite is a limited-purpose website that allows employees to go online to nd resources for employee bene ts. e QR code is sent out regularly so employees can go to this website and nd links to the employee assistance program, their HSA bank, cost transparency tools, nd a provider and videos on topics like “Short-Term vs Long-Term Disability” or “Understanding my HSA.”

Employees can send this link to their spouses and dependents for information throughout the year. A hard copy bene t guide is useful during open enrollment, but employees tend to lose them, and they can access the microsite all year long. We are also able to track activity and see if it is making a di erence.

3. Of ce hours

Encourage your broker to hold virtual or live o ce hours during open enrollment. Employees can schedule 10-minute meetings with your broker or their service team through

a scheduling link such as Calendly to ask more detailed questions. It is another tool for employees to feel stewardship from HR.

4. Drill down on disability

Prioritize educating employees about their disability bene ts. Disability can be extremely confusing and can foster feelings of distrust between companies and employees. Take the time now and it will pay dividends. As a plan sponsor, consider paying the premiums post-tax so your employees won’t have to pay taxes on their LTD benets. Some brokers don’t show this modeling because it is slightly more expensive or they are not aware of it, but it is worth pursuing.   Misinformation can be malignant to an organization, and it is up to the human resources department to take control of it. Teach the employees what they have and why they have it. en do it again, again and again.

NFP is an Aon company helping companies and individuals address their most signi cant risk, workforce, wealth management and retirement challenges

Kate Hubben is a vice president at NFP.

PERSONAL VIEW

The city of Cleveland is studying the future of Burke Lakefront Airport, which occupies nearly 450 acres of waterfront property at the northeastern end of downtown. | CRAIN’S CLEVELAND BUSINESS

Local psychologist talks consulting with Pixar for ‘Inside Out 2’

By Scott Suttell

If you go see “Inside Out 2,” the new Disney Pixar movie that opened Friday, June 14, the voices of anthropomorphized versions of anxiety, envy, joy, fear and other emotions come from stars including Maya Hawk, Ayo Edebiri, Amy Poehler and Tony Hale.

What you won’t hear — in the theater, at least — is one important voice behind the scenes: Shaker Heights child psychologist and best-selling author Lisa Damour, Ph.D., who served as a consultant on the movie.

Damour, who also is a lecturer at the Schubert Center for Child Studies at Case Western Reserve University, has been working with the writers and director of “Inside Out 2” since 2020, when they sought her insight on the sequel to the original “Inside Out,” released in 2015. ( ey were familiar with two of her books, “Under Pressure” and “Untangled,” about the emotional lives of teen girls, and brought them to the rst meeting, CWRU noted in background material about Damour’s contributions to the movie.)

primarily obsessed with outside perception — and Riley begins losing herself in trying to connect with other people.”

e sequel gives Riley more complicated emotions — anxiety, embarrassment, envy, ennui — be tting a new teen.

Damour said in a phone interview with Crain’s on Friday, June 14, that her role as a consultant involved talking with the creators about psychological elements of the characters’ journeys and looking at drafts of the script to o er ways to “adjust and re ne” it. She also did a one-hour Zoom session with the entire crew to discuss psychological issues raised by the story.

“Luckily, they only asked about things that I know,” Damour joked. She noted that the entire team at Pixar “came at this from a very researched place.”

Damour was a big fan of the rst “Inside Out.” After seeing it in 2015, she wrote a piece in e New York Times praising the movie’s “highly elaborate mental landscape” and arguing that it made a “convincing argument against childhood happiness.”

rejects the premise that all we should want is for our children to be happy.”

e new movie builds on that psychological complexity, Damour said, particularly in its exploration of anxiety and perfectionism. Anxiety, she noted, “does have a place in our lives” and can in fact keep people (and particularly teens) safe.

it right. ey take that science seriously.”

“Inside Out 2” director Kelsey Mann said in a statement that Damour’s contributions to the movie were invaluable.

e main character of both movies, Riley Anderson, confronts complex emotions as she negotiates various life events. In the rst “Inside Out,” Riley was 11. In the new lm, she’s 13, less a child than an adolescent.

As Vanity Fair put it in a review of the movie, “All the basic, stalwart emotions of childhood soon nd themselves pushed to the side, replaced by those that are

If that last part seems a little counterintuitive, here’s a bit of Damour’s thinking on the subject: “Ultimately, ‘Inside Out’ treats Riley with dignity and offers parents and children a compelling defense of di cult feelings. e movie suggests that the bittersweet is a step up from untarnished joy and shows how frantic cheerfulness can stand in the way of genuine connection. ... Pixar helpfully and gleefully

e website Vox noted that Pixar paid considerable attention to getting the psychology of the new world of “Inside Out 2” right. In addition to Damour, the movie’s creative team worked with emotion scientist Dacher Keltner, a professor of psychology at the University of California Berkeley and the director of the Greater Good Science Center. Of the lmmakers’ e orts to present the science of emotions on screen, Keltner told Vox, “ ey get

“When we decided we were making a movie about a teen girl and the chaos that comes with adolescence, we knew we needed to talk to an expert, so we immediately called Lisa,” said Mann, who with “Inside Out 2” is making his directing debut. “Not only does Lisa have an incredibly empathetic understanding of the emotional lives of teens, she’s a storyteller herself, and that combination of experience and creativity was just what we needed.”

Damour said “Inside Out 2” comes at the perfect time, given that the country is in what she calls “an era of adolescent health crisis.”

e movie is entertainment, of course, but it’s also “a very important lm” that can make it “easier to talk about complex emotions” for parents and kids.

When the rst movie was released, Damour had a daughter who was age 11 — the same age as Riley. With the sequel, she has a daughter who’s 13 — again, the same age as the character. Damour said her 13-year-old has seen and loved “Inside Out 2” and noticed some things that she herself didn’t see. (Spoiler alert: the “ennui” character can’t be bothered to fully pull up one sock.)

Damour said this was the rst entertainment project where she served as a consultant, and she’d be thrilled to do it again if the situation were right.

“I became a psychologist to be useful,” she said.

DISNEY

Damour

Equitable Development Initiative winners named

By Alexandra Golden

Andre Bryan, managing partner of Bridgeport Group LLC, and the iSPACE Project were awarded a $50,000 pre-development grant as rst-place winner of Cleveland Development Advisors’ and Cleveland Neighborhood Progress’ Cleveland Equitable Development Initiative, known as CLE-EDI.

e winners were named at a reception and networking event on Wednesday, June 12.

CLE-EDI, which launched in 2023, aims to “level the playing eld for historically excluded developers of color and uplift communities,” according to a statement from the organizations. e inaugural cohort paired 15 members with experienced developer mentors to assist in the progression and execution of their projects.

e iSPACE Project, which is BridgePort’s $50 million-plus, temperature-controlled warehouse, “is poised to bring advanced technology to Northeast Ohio, improving local health care access, enhancing public health outcomes and spurring economic growth,” the groups said in a news release.

e 250,000-square-foot facility will be built along Cleveland's Op-

“Oluwabiyi is proposing to lead the revitalization e orts from the ‘heart’ of the Village by increasing home ownership, improving quality of life for residents, bolstering economic activities, improving the overall aesthetic appeal of the neighborhood, and creating a vibrant, sustainable community for its residents, while preserving its rich culture,” the release stated.

Slavic Village was one of the hardest-hit communities following the 2007 foreclosure crisis, which resulted in a high number of abandoned and dilapidated properties that caused mass demolitions and vacant lots.

In third place, which comes with a $20,000 grant, is Jermaine Brooks, managing member of WRJ Developers, and WRJ Developers ArkiTainer In ll housing project in the St. Clair Superior neighborhood.

ArkiTainer will build a 10duplex housing complex, constructed from shipping containers, on East 72nd Street in Cleveland, less than 0.6 miles from Lake Erie and Gordon Park. “ e WRJ project reinforces housing infrastructure and the attraction of supportive amenities and essential services such as a grocer,” the release stated.

“I can’t say enough about the 15 developers who were part of the inaugural cohort of program members. They have shown both a commitment to this city and to each other.”

William A. Willis, Cleveland Development Advisors’ senior director of development services

portunity Corridor. It will have ve temperature zones, research labs and clean rooms, o ce spaces, and a supply chain logistics technology training center.

Temperature-controlled storage facilities are used for di erent purposes including storing pharmaceuticals, vaccines, biologics and other temperature-sensitive products. e project is expected to create more than 120 livingwage jobs in the rst 24 months and will include a health-tech innovation center for emerging businesses.

“Collaborating with local health departments and nonpro t organizations, the facility could ensure a steady supply of chronic illness medications and other medical supplies that require storage at ultra-cold to cryogenic temperatures,” the release stated.

e project will “leverage Cleveland’s health care prowess to create more biotech/health care jobs in the city,” according to Bryan.

Coming in second place and receiving a $30,000 grant is Lael Developer and its principal, Jimi Oluwabiyi, for creating a ordable townhomes in the Slavic Village neighborhood to “breathe new life into the historic neighborhood,” the release stated.

e $13 million-plus project will include 42 modern townhomes with an average sale price set for $199,000.

e project is included in the Cleveland City Planning Commission's development plan for St. Clair Superior Lakefront East and is aligned with the St. Clair Superior Strategic Plan completed in 2021, the release stated.

Yvette Ittu, president and CEO of Cleveland Development Advisors, said in a statement that the CLE-EDI program "was launched to address the imbalance in the real estate industry in Greater Cleveland. e program exceeded all of our expectations. What started as a vision I believe has become a movement, driven by this outstanding cohort and their mentors inspiring remarkable innovation and dedication. We expanded our prize program to ensure every cohort member received a welldeserved award in addition to all of the great bene ts that came with the CLE-EDI.”

Each of the other 12 participants will receive a $1,500 grant. ey are as follows:

April Bebee, CEO of Phoenix Development Group LLC; Akil Hameed, founder and CEO of FASS Real Estate Services; Jimmie Hicks III, a board member and project director for housing rehab for Start Right Community Development Corporation; Ti any L. Hollinger, owner of Hollinger Financial LLC; Khalid Hawthorne, senior development manager at Famicos

Foundation; Ariane Kirkpatrick, president and CEO of the AKA Team; Hosanna Mahaley, founder and CEO of Legacy RED (Real Estate Development) Group; Dominic Ozanne II, project manager for Ozanne Construction Co. Evin Peavy, a real estate developer with DC Kelly Investments in Cleveland; Christopher D. Roberts, leadsnancial strategy for global procurement and supplier diversity and inclusion at Amazon; Dontez Sanders, founder of DS Group Real Estate Investments; and

Khrystalynn Shefton, chief of growth and expansion at Birthing Beautiful Communities.

“I can’t say enough about the 15 developers who were part of the inaugural cohort of program members,” said William A. Willis, Cleveland Development Advisors' senior director of development services and one of the people who spearheaded CLE-EDI. “ ey have shown both a commitment to this city and to each other.”

Applications for the next cohort, which starts in the fall and runs through spring 2025, will be open from July 1-29.

A rendering shows the iSPACE Project, top, which is BridgePort’s $50 million-plus, temperature-controlled warehouse project. It received a $50,000 pre-development grant for its rst-place nish in the Cleveland Equitable Development Initiative. CONTRIBUTED

A rendering shows the ArkiTainer housing complex, middle and above, constructed from shipping containers, on East 72nd Street in Cleveland. The project received a $20,000 grant for its third-place nish. WRJ DEVELOPERS/THREE SQUARED

NOTABLE REAL ESTATE LEADERS

Real estate is big business in Northeast Ohio, from the rising apartment towers to the sprawling shopping developments that live across the region. No matter if it’s helping a big corporation nd new of ce space or helping a young family nd their rst home, these honorees are dedicated to nding the right t for everyone so that, no matter the client, they feel rooted in Northeast Ohio. And these movers and shakers of the markets aren’t just making strides in the elds of residential and commercial real estate, they’re fostering the next generation of leadership. And when they’re not making deals, they’re making an impact on their communities and neighborhoods because they don’t just work here, they live here — and they’re some of the region’s biggest supporters.

— Marcus Gilmer

METHODOLOGY: The honorees did not pay to be included. Their pro les were drawn from the nomination materials submitted. This list is not comprehensive. It includes only individuals for whom nominations were submitted and accepted after a review by editors. To qualify for the list, nominees must be based in Northeast Ohio and be well-established in their eld. They must work for a residential or commercial real estate rm (architecture, development, construction, brokerage) and currently serve in a senior leadership role at the rm. They must demonstrate an innovative approach to marketing a home or commercial real estate property. And they must hold a leadership position outside of the candidate’s own organization or company, including professional organizations, civic/community service initiatives, philanthropic activities, mentoring programs and diversity and inclusion efforts.

Jermaine Brooks

Realtor, Keller Williams Greater Metropolitan

Current scope of work: Jermaine Brooks, a partner with Keller Williams Greater Metropolitan, has sold over 500 homes during his career. Brooks also mentors fellow people of color interested in entering the industry.

Biggest career win: Through inception of the List, Sell & Buy Team, Brooks fosters a culture of empowerment and wealth creation within the Black community. Fostering Black homeownership is another goal of the service.

Community or industry contributions: Brooks volunteers with numerous organizations, including the Real Estate Diversity Initiative. He is also an alumnus of Kappa Alpha Psi fraternity.

Anne Hartnett

CEO, H.Co Partners LLC

Current scope of work: Through Harness Collective, Anne Hartnett is focused on adaptive reuse projects that positively impact Cleveland. In addition, Hartnett evaluates vacant properties under consideration for historic preservation.

Biggest career win: Hartnett redeveloped the historic Vitrolite building in Ohio City as an ecosystem for small, locally owned storefronts. Businesses include Harness Cycle, a cycling studio that Hartnett founded in 2013. Community or industry contributions: Hartnett assisted in launching a COVID-era grant program providing $30,000 in working capital to local entrepreneurs. Moreover, she hosts community fundraising events and gives advice to women-owned businesses.

Sonya Edwards

Principal broker, Realty Reimagined

Current scope of work: Sonya Edwards opened Ohio’s rst nonpro t real estate agency in 2014, later reorganizing the brokerage under a new name — Realty Reimagined. As principal broker, Edwards manages the rm’s operations while supervising 18 agents.

Biggest career win: Edwards is known for her commitment to serving vulnerable populations with expertise, empathy and tenacity.

Community or industry contributions: In recent months, Edwards led an effort to secure new housing for displaced mobile home residents. Additional community contributions include membership with the Tri-C Real Estate Advisory Team and the National Fair Housing Alliance.

Kristy Hull

Senior vice president, JLL

Current scope of work: Throughout her 17-year career, Kristy Hull has managed almost 8 million square feet of real estate. Hull, who joined JLL’s Cleveland of ce in 2021, harnesses her unique skill set in consulting of ce and industrial-based clients.

Biggest career win: Hull leases space at the iconic Key Tower, further bolstering her portfolio with 1.4 million square feet of industrial and of ce space.

Community or industry contributions: Hull has bolstered Cleveland’s of ce and industrial economies through strong leadership and a client- rst mentality. Additionally, she is a member of Veteran Canine Connection, a nonpro t matching veterans with companion dogs.

William Gallagher

Realtor, Russell Real Estate Services

Current scope of work: A 30-year industry veteran, William Gallagher is currently property manager of several commercial of ce buildings in Cleveland. Among Gallagher’s high-pro le transactions is conegotiating conversion of a former NASA property into a hotel and apartment complex.

Biggest career win: Gallagher manages approximately 300,000 square feet of Cleveland real estate, while selling millions of dollars in homes for buyers and sellers alike.

Community or industry contributions: Gallagher is founder and coach of the Avon Lake High School bowling team. In addition, he coaches Avon Lake elementary school students in football.

Doxie Jelks

Realtor, Keller Williams Greater Metropolitan Current scope of work: Doxie Jelks is a 40-year industry veteran specializing in residential real estate. Building long-term wealth for her clients is a core focus of Jelks’ practice.

Biggest career win: Jelks’ long track record of success includes multimillion-dollar sales in 2023. She is also a top 20 agent with Keller Williams Greater Metropolitan, a leading Northeast Ohio brokerage.

Community or industry contributions: Jelks is the author of two books; the recently released “Real Estate Matchmaking 101” is a comprehensive guide for rst-time homebuyers.

Akil Hameed

Founder and CEO, FASS Management

Real Estate Services

Current scope of work: Under Akil Hameed’s leadership, FASS Real Estate Services manages over $30 million in commercial and residential properties. Hameed leads a team of 20 brokers, with an emphasis on marketing and community engagement.

Biggest career win: FASS secured a leasing and management contract for Cleveland’s Shaker Square shopping district, part of a larger effort to return the historic retail center to prominence.

Community or industry contributions: A membership with the Cleveland Equitable Development Initiative allows Hameed to build a pipeline of diverse real estate talent. He is also immediate past president of the Akron Cleveland Association of Realtors.

Joseph Khouri

Senior vice president, CBRE

Current scope of work: Joseph Khouri has grown the retail practice group at CBRE’s Northeast Ohio of ce, orchestrating deals for a portfolio of national properties. Over his career, Khouri has closed $425 million in transactions, a scope of work encompassing business development, site selection and nancial feasibility analysis.

Biggest career win: While in the development business, Khouri managed 3 million square feet of retail, of ce and light industrial space. Among his recent accomplishments is a multi-market project for a major gas and retail client. Community or industry contributions: Khouri gives his time to numerous organizations, including Habitat for Humanity, Rebuilding Together and Ronald McDonald House Charities.

Matthew King

Owner,

Green Bridge Real Estate

Current scope of work: With Matthew King at the helm, Green Bridge Real Estate has enjoyed $50 million in sales in the last ve years. King oversees operations of a multifamily brokerage responsible for $25 million in annual sales and leasing volume.

Biggest career win: King serves on the board of EDEN, a Northeast Ohio nonpro t that arranges housing solutions for underrepresented populations.

Community or industry contributions: King educates property owners about EDEN, ful lling his larger mission of bringing quality housing to the underprivileged.

Bhavin Patel

Co-founder and principal, Green Harvest Capital

Current scope of work: Bhavin Patel, who launched Green Harvest Capital in 2018, currently operates a $300 million portfolio specializing in multifamily assets and select service hospitality brands. This year, Patel and his partners are spearheading investments in service and manufacturing.

Biggest career win: Patel and his team lead 150 employees across multiple states, as part of a rapid growth trajectory that continues into 2024.

Community or industry contributions: Patel has leadership positions with the Northern Ohio Apartment Association and the Greater Akron Chamber.

Ariane Kirkpatrick

President and CEO, The AKA Team

Current scope of work: Ariane Kirkpatrick is president and CEO of The AKA Team, a full-service commercial construction and facilities company. The Clevelandbased rm boasts over 50 years of general contracting, construction management and design build experience.

Biggest career win: Under Kirpatrick’s guidance, the company has delivered quality service to a who’s who of Cleveland mainstays: The Cleveland Clinic, the Cleveland Museum of Art, Quicken Loans Arena, Cuyahoga Community College and more.

Community or industry contributions: Kirkpatrick has won numerous accolades during her career, including Entrepreneur of the Year recognition from the National Urban League.

Aaron Pechota

Executive vice president of development, The NRP Group

Current scope of work: Aaron Pechota leads affordable housing development at The NRP Group, managing a 12-person team while expanding the rm’s 15-state footprint. Pechota creates private-public partnerships to provide affordable housing for Cleveland neighborhoods.

Biggest career win: Pechota led the NRP team in establishing The Edison at Gordon Square, transitioning unused factory buildings into a thriving multifamily development.

Community or industry contributions: Pechota is a board member of Downtown Cleveland Alliance and part of the Ohio Housing Council.

The median age of Realtors is 60, up from 56 in 2023.

— National Association of Realtors 62% of all Realtors are female, down from 66% last year.

— National Association of Realtors

Cleveland is predicted to be the EIGHTH

hottest housing market in the U.S. in 2024.

— Zillow

On average, Cleveland homes sell after 25 days on the market.

— Red n

George J. Pofok

Principal, Cushman & Wake eld |

CRESCO Real Estate

Current scope of work: As one of four CRESCO principals, George J. Pofok is involved with recruiting, training and mentoring emerging talent. A regional leader in real estate informatics, Pofok heads the company’s comprehensive data efforts.

Biggest career win: Pofok navigated Fat Head’s Brewery & Saloon through the 75,000-square-foot expansion of its new Middleburg Heights location.

Community or industry contributions: Pofok has been involved with industry and civic organizations like the Cleveland Area Board of Realtors over the years and is currently a Fairview Park Planning & Design Commission member.

Michael Repasky

CEO and operating principal, Keller Williams

Greater Metropolitan

Current scope of work:

Michael Repasky oversees the leadership team at Keller Williams Greater Metropolitan, a Northeast Ohio brokerage. Under his direction, KWGM ranks third in pro tability among Keller Williams locations.

Biggest career win: In 2022, Repasky lifted KWGM to No. 1 in pro ts among all Keller Williams franchises.

Community or industry contributions: Aside from his leadership at Keller Williams, Repasky serves as a mentor. In addition, he sits on the board of Flying Horse Farms, a camp for children with serious illnesses.

Lidia Saluan Richani

Executive vice president of leasing, Stark Enterprises

Current scope of work: Lidia Saluan Richani leads commercial leasing efforts at Stark Enterprises, heading a national portfolio that spans shopping, lifestyle centers and downtown real estate.

Biggest career win: During the pandemic, Saluan Richani restructured deals for 600 tenants — a negotiating skill that earned her consecutive Power Broker awards. Stark Enterprises’ portfolio has maintained a 96% leasing rate since 2020, exemplifying Saluan Richani’s management strategy. Community or industry contributions: Saluan Richani is an active member of philanthropic organizations, such as the American Cancer Society and the Holy Spirit University Foundation. She is also a 30-year member of the International Council of Shopping Centers.

Eric Silver

President and broker, The Ag Real Estate Group Inc.

Current scope of work: Eric Silver handles property management, commercial real estate brokerage and court-appointed receivership matters as leader of The Ag Real Estate Group. Silver has been appointed as receiver in more than 45 matters across 14 counties.

Biggest career win: Silver closed a complicated sale involving an 80-acre property with several wetland areas. Bringing in Western Reserve Land Conservancy fasttracked the deal to completion.

Community or industry contributions: Silver is a volunteer for Anshe Chesed Fairmount Temple/The Temple-Tifereth Israel, as well as CASA/GAL (Court Appointed Special Advocate/ Guardian Ad Litem).

Seth Task Team leader, Berkshire Hathaway HomeServices Professional Realty — The Task Team

Current scope of work: Industry veteran Seth Task has completed thousands of transactions over a 19-year career. Guiding fellow agents to personal success is another facet of Task’s work.

Biggest career win: Task co-launched Rebuild Cleveland, an effort to bring sustainable housing to working families. Rebuild’s rst project won the Home Builders Association Cleveland Choice award for best “green” home under 2,500 square feet.

Community or industry contributions: Task is past president of Ohio Realtors and the Akron Cleveland Association of Realtors.

The Modern Law Firm.

Matthew Wallace

Market leader and national director of shopping centers, Matthews Real Estate Investment Services

Current scope of work: A market leader at Matthews since 2021, Matthew Wallace manages a dozen agents at the Cleveland of ce. Promoted to national director of shopping centers in 2023, Wallace has recruited several top industry producers to join the rm across various markets.

Biggest career win: Wallace has steadily grown Matthews’ shopping center division, solidifying the group’s market share on the East Coast and beyond.

Community or industry contributions: Wallace is a member of Penn State’s real estate advisory board, where he mentors students interested in joining the industry. Additionally, Wallace acts as a coach for Rocky River Youth Hockey.

Daniel Walsh

Founder and CEO, Citymark Capital

Current scope of work: Led by Daniel Walsh, Citymark Capital structures opportunities for investors seeking returns in multifamily real estate.

Biggest career win: An authority at the crossroads of banking and commercial real estate, Walsh is a renowned thought leader in the industry. As part of his well-de ned investment strategy, the company exited the apartment fund market in 2022.

Community or industry contributions: Walsh has held board memberships including the Cleveland Foundation, the National Multifamily Housing Council and the Commercial Real Estate Finance Council.

Realtors frequently have had careers in other elds prior to real estate, the most common being in management, business and nance.

— National Association of Realtors

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Vance, ve other senators expand hold policy on Biden nominees

By Scott Suttell

U.S. Sen. JD Vance is joining with ve other conservative senators in implementing what they call "a sweeping hold policy on a series of President Biden's Senate nominees," a response to what they see as the administration's "radical lawfare against President Trump and other political opponents."

It's essentially an expansion of an existing hold policy that Vance has had since June 2023 on the Biden administration's Department of Justice nominees.

One of the nominees who has been and continues to be a ected is Rebecca C. Lutzko, who was nominated last year to be U.S. Attorney for the Northern District of Ohio but has yet to receive formal con rmation from the full Senate. She has been serving in the role on an acting basis while awaiting con rmation.

Joining Vance in the hold announcement on ursday, June 13, were Republican Sens. Bill Hagerty of Tennessee, Mike Lee of Utah, Roger Marshall of Kansas, Eric Schmitt of Missouri and Tommy Tuberville of Alabama.

ey characterized it as "a followon to Senate conservatives’ announcement on May 31, led by Lee, to oppose major legislation and

Biden nominees in the wake of guilty verdicts against former President Donald Trump in New York. (Trump was found guilty in state court of 34 charges of falsifying business records to cover up a payo to a porn actress.) Politico called the May 31 announcement a move that "could further bring legislative activity in the upper chamber to a slog."

e June 13 announcement from Vance and the ve other conservatives began this way:

“In a continuing response to the current administration’s persecution of President Donald Trump, we will not allow the fast-tracking of any Biden Article III court judicial nominees, as well as Biden U.S. attorney nominations. Further, we will not permit the fast-tracking of nominees who have suggested the Trump prosecutions were reasonable, endorsed President Trump’s guilt in these sham proceedings, joined or supported organizations that celebrated the indictment of President Trump, supported the 'get-Trump' candidacy of Alvin Bragg, or supported lawfare or censorship in other ways."

They said the hold policy "will last until Election Day, when the American people will have the opportunity to decisively reject

attempts to settle political disputes through the legal system.”

e Senate Judiciary Committee in March voted, for a second time, to approve Lutzko’s nomination as U.S. Attorney for the Northern District.  She was previously approved by the committee in September 2023 but wasn’t con rmed by the full Senate. Lutzko then had to be renominated this year by President Joe Biden. She operates as acting U.S. Attorney but has not been con rmed due to Vance's blanket hold on all U.S. Attorney

nominees.

e policy announced June 13 extends to nominees in other roles. e senators listed more than 40 nominees by name and said the list "could grow if the Biden administration announces further nominations."

Vance, who is among Republicans being vetted to be Trump's running mate, has had a busy week advancing causes close to conservatives' hearts.

On Wednesday, June 12, he joined with more than 20 Senate

and House conservatives to announce the Dismantle DEI Act, which aims to "eliminate all federal DEI (diversity, equity and inclusion) programs and funding for federal agencies, contractors which receive federal funding, organizations which receive federal grants, and educational accreditation agencies."

He wrote in a June 12 post on X, formerly known as Twitter, "DEI is racism, plain and simple. It’s time to outlaw it nationwide, starting with the federal government."

Fed’s Mester wants more data on softer in ation before cuts

Jonnelle Marte, Bloomberg

Federal Reserve Bank of Cleveland President Loretta Mester said she still sees in ation risks as tilted to the upside despite welcome news in the latest data.

Mester, speaking in print and television interviews June 14 at Bloomberg’s New York o ce, also said the median projection of policymakers’ latest forecasts — which signaled just one interestrate cut this year — is “pretty close” to her own outlook for the economy.

“I think the risks to in ation are still on the upside,” Mester said. “I think the risk to the labor market is dual-sided.”

e Cleveland Fed chief recently called softer-than-expected ination gures a “great gift,” but added she’d like to see a few additional similar reports before lowering rates. e consumer price index excluding food and energy climbed 0.2% in May, and 3.4% from a year earlier, the slowest pace in more than three years.

“We’ve made pretty good progress on inflation in the last two years. It’s still too high,” Mester

said. “There’s more to do on inflation to gain confidence that it is on that downward trajectory to 2%.”

Fed o cials at their latest policy meeting dialed back expectations for how much they plan to ease this year, penciling in only one

rate reduction, according to their median projection. At the meeting, they unanimously agreed to leave their benchmark rate steady

in a target range of 5.25% to 5.5%, a two-decade high rst reached in July.

Mester said she did not update her projections following the release of the CPI data, which were published on the second day of the two-day policy meeting.

“Given all the progress we’ve made on in ation, I think we do need to see a few more data points that really tell us, ‘OK, we now can be pretty con dent in ation is on that downward path, and therefore we can start reducing the restrictiveness,’” she said.

e outgoing Cleveland Fed chief also said she penciled in 3% as her latest projection for where interest rates will settle in the longer term. Policymakers marked up their expectations for that rate to 2.8% in June, following a slight bump in March, according to their median estimate, hinting they don’t expect rates to return to pre-pandemic levels.

Mester will step down at the end of the month after a decade in the role. She will be replaced by Beth Hammack, a Goldman Sachs Group Inc. veteran, who will take the helm in August.

Cleveland pension fund les suit against Elon Musk

By Jef Feeley, Bloomberg

Elon Musk’s bid to leave Delaware, the state of corporate litigation, is drawing a urry of lawsuits from Tesla Inc. shareholders before the company escapes to Texas.

At least three suits — one from a Cleveland pension fund — accusing Musk of various forms of mismanagement have landed in Delaware Chancery Court in June. ey arrived just before the billionaire entrepreneur persuaded shareholders at Tesla’s annual meeting ursday, June 13, to back proposals to revive his $56 billion pay package and reincorporate the electric-car maker in the company-friendly Lone Star state.

In one lawsuit, the world’s third-richest person was blasted for allegedly trying to force investors into voting for the Texas move and his pay package with threats about shifting artificial intelligence assets away from Tesla. In another, he was called out by a shareholder who said he diverted Tesla resources in his 2022 effort to acquire Twitter Inc. On June 13, a third suit alleged that he’s betraying Tesla to build his artificial intelligence

startup.

Musk has long been both a magnet for and instigator of lawsuits — and he tends to litigate aggressively. Rarely does he settle or drop cases, as he did this month with a suit he led claiming that OpenAI reneged on its founding mission from when he was an early backer.

But if Tesla goes to Texas — leaving Musk with no corporate presence in Delaware, as all of his other companies are also incorporated elsewhere — it could get harder to blame the carmaker and its leadership for malfeasance. Texas is in the process of setting up a new business-court system that some legal experts believe would be more friendly to corporate titans such as Musk.

Musk has threatened to pull Tesla out of Delaware ever since the chancery court’s chief judge issued a ruling in January voiding the record-setting executive-compensation plan that Tesla’s board approved for Musk in 2018. e judge ruled that the board had con icts of interest and that Tesla failed to properly disclose the plan’s details.

The shareholder vote in favor of the pay package and the move to Texas signaled con dence in Musk’s leadership despite slumping sales and a precipitous drop in the stock price. The announcement of the results didn’t disclose the breakdown of votes, but Musk had said earlier in a so-

cial media post that the proposals were winning approval “by wide margins.”

In the latest suit, a Cleveland-based pension fund invested in Tesla claims that Musk’s creation of his own arti cial-intelli-

gence company called x.AI and the diversion of AI resources from the carmaker amounts to “brazen disloyalty” and a violation of Tesla’s “Code of Conduct.”

e company’s board has turned a blind eye to Musk plundering resources from Tesla and diverting them to AI and creating “billions in AI-related value at a company other than Tesla,” according to the complaint led by the Cleveland Bakers and Teamsters Pension Fund.

Tesla didn’t immediately respond to an email seeking comment on the suit.

x.AI has become a prominent part of Musk’s universe of companies over the past year, and recently raised $6 billion in new funding that valued the company at $24 billion. xAI’s core product, an “anti-woke” chatbot called Grok, has been integrated into Musk’s social network, X, formerly known as Twitter, which is also providing training data for the chatbot in the form of user posts.

The new case is Cleveland Bakers and Teamsters Pension Fund v. Musk, 2024-0646, Delaware Chancery Court (Wilmington).

What the Supreme Court’s abortion pill ruling means for Ohio

By Paige Bennett and Greg Stohr, Bloomberg

e U.S. Supreme Court preserved full access to a widely used abortion pill in a case that carried major stakes for reproductive rights and election-year politics.

e court unanimously overturned a federal appeals ruling that would have barred mail-order prescriptions for mifepristone, the drug now used in more than half of U.S. abortions. e lower court ruling would have reduced abortion access even in states where reproductive rights have broad support.

e court stopped short of afrming Food and Drug Administration decisions to loosen restrictions on mifepristone starting in 2016. e majority instead said the anti-abortion doctors and organizations that sued lacked legal “standing” because they aren’t directly a ected by the FDA’s actions.

“ e federal courts are the wrong forum for addressing the plainti s’ concerns about FDA’s actions,” Justice Brett Kavanaugh wrote for the court. “ e plainti s may present their concerns and objections to the president and FDA in the regulatory process, or to Congress and the president in the legislative process.”

e FDA expanded access to mifepristone with a series of steps that included a 2021 decision to permanently jettison the requirement that patients physically visit a medical provider. e FDA also extended the drug’s approval to the 10th week of pregnancy — three weeks longer than was the case previously — and reduced

the dosing regimen from 600 milligrams to 200.

Supreme Court ruling means access remains for Ohio

For now, the ruling means access to mifepristone remains the same for Ohioans, said Jessie Hill, a cooperating attorney for the ACLU of Ohio and professor at Case Western Reserve University.   e ACLU, Planned Parenthood and other reproductive rights groups are challenging a number of state restrictions on abortion, including a ban on telehealth

medication abortion services, the 24-hour abortion waiting period and a law that prevents physician assistants, nurse practitioners and certi ed nurse midwives from providing medication abortion.

“In Ohio, we have a number of additional restrictions that apply to mifepristone that are medically unnecessary and those are currently being challenged in a lawsuit,” Hill said. “ at’s going to be ongoing.”

An Ohio law initially approved by the state legislature in 2004 requires patients seeking to end a pregnancy using mifepristone to

receive it from a physician. Some other states have similar laws, but they also have near-total abortion bans. Ohio voters approved a amendment enshrining access to abortion and other reproductive health care in the state constitution in November 2023.

Following the Supreme Court ruling, Ohio Democratic Party Chair Elizabeth Walters said in a statement: “Today, we can breathe a little easier knowing that Mifepristone will remain widely available. But make no mistake, abortion is still on the ballot in Ohio and the stakes

couldn’t be higher. is November, it’s up to all of us to elect candidates who will defend the right to an abortion and push back against attacks on all forms of reproductive care. Our work is far from over, and we’re ready to ensure that every Republican who attacks our rights hears loud and clear: we won’t go back.”

On X (formerly Twitter), U.S. Sen. Sherrod Brown called the ruling “a win for reproductive freedom” but said it “doesn’t change the fact that politicians are inserting themselves into women’s healthcare decisions across the country.”

Brown said the U.S. needs to ensure birth control, IVF and abortion are protected across the country.

Erica Wilson-Domer, president and CEO of Planned Parenthood of Greater Ohio, said in a statement that attacks on mifepristone and medication abortion are led by “disingenuous and cynical actors who prioritize their political views over ensuring access to life-saving healthcare.”

“Patients deserve to access the medication they need, and providers should be able to care for their patients without unnecessary interference,” Wilson-Domer said. “Abortion, including medication abortion, is legal and constitutionally protected in Ohio. Planned Parenthood of Greater Ohio will continue to ensure patients can access the abortion method of their choice with as few barriers as possible. We are committed to following evidence-based standards to provide safe, high-quality abortion care and information to patients who come to us for care.”

Demonstrators outside the U.S. Supreme Court in Washington, D.C., on March 26. The court this month preserved full access to a widely used abortion pill in a case that carried major stakes for reproductive rights and election-year politics. | BLOOMBERG

Elon Musk | BLOOMBERG

Region’s dwindling pediatrician numbers near crisis point

By Paige Bennett

e steady decline of medical school graduates going into pediatrics has been on the radar of health care professionals for years, but the reduction seen in this year’s Match Day numbers came as a surprise.

Nearly 30% of pediatric residency programs did not ll their open residency positions during this year’s National Residency Match, a drop of roughly 6% over last year and the largest drop in the past decade, health care publication Stat News reported. And Northeast Ohio experts say prioritizing pediatrics is vital for reducing health care costs and improving patient care.

“It was a little alarming to see that number, actually, even for us,” said Dr. Aparna Roy, chair of pediatrics at MetroHealth. “We’ve been seeing signals of that in the last few years, but it’s never come to this sort of inability to ll as we did this year.”

Dr. Michael Forbes, chief academic o cer at Akron Children’s, said the hospital has been obsessing over the dwindling number of pediatricians for the last decade, but the latest numbers were a massive wake-up call.

In response to the diminishing eld, Akron Children’s has

changed the way it recruits, Forbes said. e hospital is intentionally marketing to medical students and pediatric residents, something he never experienced when he was in medical school in the 1980s.

“I think the pandemic, in many ways, has accelerated a lot of this,” said Forbes, who is a pediatric ICU doctor. “People were kind of putting up with the misery of it and the reality of it. I think the pandemic just hit the fast-forward button.”

A shrinking number of pediatricians also means a shrinking number who are choosing pediatric subspecialties. Dr. Je rey Hord, a longtime Akron Children’s physician and board president at the American Society of Pediatric Hematology/Oncology, recently told Crain’s that experts believe the workforce will pose a tremendous challenge in the future with fewer candidates pursuing these highly specialized areas.

Not helping matters: Pediatricians and family medicine specialists consistently rank among the lowest-earning medical specialties. e U.S. Bureau of Labor Statistics reports the average pediatrician salary as $205,860. In contrast, emergency medicine physicians make an average of $306,640 and neurologists make $271,470.

For medical students graduating with tens of thousands of dollars in debt, that lower compensation may be a deterrent keeping them from pediatrics, Forbes said. e pay issue highlights the way pediatrics tends to be overlooked in the overall U.S. health care system, he said, because discussions around the cost of health care focus on adult care, he said.

Dr. Megan Moini, founder of Beachwood’s Emerald Direct Primary Care, said physicians who opt for primary care typically choose that pathway because they enjoy building relationships with patients and their families. However, primary care doctors employed by large health systems see thousands of patients per year, making it dicult to develop these relationships, she noted.

“If we ultimately want to reduce the total cost of care in the American health care system, we have to invest in pediatrics.”

Dr. Michael Forbes, chief academic of cer at Akron Children’s

Compounding the lower compensation are the challenges of the specialty.

Roy said pediatricians must deliver high-quality care in short windows of time, and they often end up inadvertently taking care of an entire family. Sometimes, their work involves reaching out to a child’s school or counselors for additional information if the parent is unable to provide it. It’s not surprising, then, that in 2022, 55% of pediatricians reported experiencing burnout, according to an American Medical Association survey.

Moini, who previously worked at large health systems, started her own direct primary care practice in 2020. at model allows primary care doctors to see a smaller number of patients who pay a monthly fee for increased access to their doctor.

Addressing the problem requires U.S. health care to reexamine the value proposition and illuminate the importance of pediatrics, Roy said. at means providing a true continuity of care that takes patients from the cradle to adulthood.

Roy suggested U.S. health care explore further development of Project ECHO, or Extension for Community Healthcare Outcomes. e model of education and care management, developed

at the University of New Mexico Health Sciences Center, uses video conferencing to train and advise primary care providers. e overarching goal is to improve access to specialty care for patients in rural and underserved areas.   Forbes said emphasizing the value of pediatrics is necessary to lowering U.S. health care costs. “If we ultimately want to reduce the total cost of care in the American health care system, we have to invest in pediatrics,” he said. “Nearly all of our adult spend today is based on the inability to deliver highquality pediatric care 20 years ago. Public health begins in childhood.”

Akron Children’s is also piloting an academic immersion program that allows medical students to partner with faculty to learn about clinical research and what a day in the life looks like for a pediatric ICU doctor or pediatric hematology-oncology specialist. e average medical student only spends a few weeks in pediatrics during their four years of medical school, Forbes said, and Akron Children’s wants to increase their exposure. e next frontier, he said, is reaching students in Northeast Ohio high schools to show them the opportunities in the area and recruit as deeply as possible into the hospital’s pipeline.

Lincoln Electric’s ‘Testival’ a showcase for EVs

By Dan Shingler

Lincoln Electric recently hosted a “Testival,” a part trade show and part proving ground where participants, ranging from federal ocials to behind-the-scenes companies developing systems for others, show o , demonstrate and also test their products, looking for customers, vendors, new ideas and development partners.

e event was put on by Charging Interface Initiative North America, better known as CharIN. e group has more than 300 members globally, focused on promoting standards in the eld of charging systems used for electric vehicles.

And attendees and organizers said it was a success and an important place to be if you want a role in the future of electric vehicle charging systems.

ere have been four such events in the U.S. so far and Lincoln has hosted two of them. Now it’s hosted the biggest, said CharIN Executive Director Erika Myers. “ is is the best, and the biggest, with the most equipment (being tested and demonstrated). We’ve

had nothing but compliments from participants.” is year’s event brought 275 participants with equipment, up from 175 at the event at Lincoln in 2023, Myers said.  e event isn’t consumeroriented — it wouldn’t be surprising if you had to know Ohm’s law to get in.

But it’s a great place to meet people who are designing the hardware, software and systems that will be needed if EVs are going to become as ubiquitous as today’s internal combustion-driven cars and trucks.

Manny Hueguez, president of Zerova Technologies in Fremont, Calif., came to the event as both a

Advanced Polymer Coatings readies new products with plant expansion underway

Avon's Advanced Polymer Coatings already is developing and introducing products it will make in its expanded space when it opens next year, including a new coating for rail cars that the company just introduced this month.

In January, the company, which makes protective polymer coatings for a variety of harsh environments and demanding applications, announced it had broken ground on a 42,000square-foot factory expansion that would double its size and cost more than $10 million.  at building is still under construction, said Marketing Manager Scott Wesemeyer, but some products that will be made there

have already been under development or in eld testing and one has just been introduced.

On June 13, the company introduced a new coating designed for railcars — its rst external coating for the industry — called TriFLEX.

Advanced Polymer Coatings worked with leaders in the chemical sector and major rolling stock operators to develop the coating, which it says uses advanced resin technology — and three di erent resins — to provide better protection than existing coatings and can also be applied directly to metal surfaces.

“We believe there’s a gap in the industry. You can invest in a coating with great chemical resistance, but you sacri ce performance in other categories like UV

sponsor and participant. His company makes chargers that work with all sorts of EVs across various platforms, and which can work with various software systems, he said.

His company focuses on the more powerful level 2 and level 3 EV chargers which charge vehicles, or eets of vehicles, much faster than what’s found in most home garages, with between 30 kilowatts and a full megawatt of power.

You’ll probably never see Zerova’s name when you charge a vehicle as it makes them for others as a white-label manufacturer. But there’s a decent chance you’ll use one or drive a vehicle that does.

Zerova’s already deployed well over 100,000 AC chargers and thousands of DC chargers, Hueguez said.

“We do this in over 50 countries,” he said, “with factories in Vietnam, Japan, Taiwan, China, and we’re in a partnership to manufacture in Nevada and Arizona.”

He’s been to other Testival events, including last year’s at Lincoln.

“The networking opportunities for me here were substantial and also key,” Huequez said. “For me, this was a great Testival.”

There are two such events each year and the next one is in California in November, Myers said.

Such events are important for a Fledgling industry, said Oleg Logvinov, president and CEO of IoTecha, a company working on charging platforms and ways to integrate millions of electric vehicles into power grids around the world. It was the main sponsor of the event.

Logvinov said he was pleased to see 16 vehicle platforms at this year’s event, up from a dozen or less last year. He hopes to come back, as does Myers.

“We’re trying to convince them to do it a third time,” Myers said of Lincoln.

e company’s expertise with welding systems, which like EV chargers need to nd and be able to manage power sources, as well as its big and open facilities, “creates the perfect environment for us to do testing,” she said.

New Manufacturing Works president aims to focus on growing its workforce

By Dan Shingler

Manufacturing Works’ new president, Adam Artman, introduced both himself and the nonpro t’s new strategic plan at the group’s annual meeting ursday, June 13, at e Aviator on Brookpark Road.

A little more than 100 of the group’s 308 members turned out to hear Artman’s plans for the advocacy and support organization.

of an opportunity. Workforce allows us to see the growth in people that we serve ... and I see growth in our members that are participating in our training programs. It gets me up in the morning.”

Other strategic goals for the organization are advancements in member engagement, awareness and outreach, nancial stewardship and strength, and general organizational excellence.

stability and impact resistance,” Matt Sokol, the company's vice president of sales and marketing, said in a release. “It is an industry rst and we are very proud to announce its launch.”

TriFLEX is, for now, being produced in APC’s existing plant, but will be made in the new addition next year, Wesemeyer said.

As the nation and industries such as rail increase investments in infrastructure, ACP is seeing strong demand for its coatings and has been ramping up its product development, said Wesemeyer. It plans to also use its new space to produce other new lines.

“We are leaving new space to make future products we’re currently eld-trialing,” Wesemeyer said.

Artman is only the third president since the organization was founded in 1986 by local community organizations to support manufacturers on Cleveland’s West Side. Since then, it has changed its name and broadened its scope to include members all around the city and into surrounding communities.

It likely will come as no surprise that workforce issues remain high on Manufacturing Works’ list of priorities and is a major component of its rst strategic goal of further ramping up its programming and services.

Artman has been focused on workforce development for the past 15 years, including as Manufacturing Works vice president for workforce development since 2021.

“I’m passionate about workforce,” Artman told his members.

“Nothing is more gratifying than seeing somebody take advantage

But workforce is the top issue, facing manufacturers not only here but around the state and nation, Artman and his sta ers said.

On the bright side, Ohio might be ahead of other states, as it’s been developing programs to address manufacturing workforce shortages for longer than most others, they noted.

e group did not unveil any speci c new initiatives at the meeting but indicated they’re coming.

First, Artman said, he wanted to collect feedback from his members, which started with recorded roundtable discussions that Manufacturing Works will use to de ne speci c plans.

“We want to hear from you about the things you need because our strategic plan is broad,” Artman said. “We can go in a lot of di erent directions, but we want to go in a direction that has value, speci cally to the people in this room.”

Zerova Technologies CEO Manny Huguez demonstrates a charger he brought to this year’s “Testival” event at Lincoln Electric. | DAN SHINGLER

Dan Shingler

APC’s new product, TriFLEX, being applied to a railcar for eld testing. | ADVANCED POLYMER COATINGS

Artman

For Transtar Industries, private equity investment is driving big-time growth

By Dan Shingler

Transtar Industries is on a streak of acquisitions and expansions that took o following an investment by Cleveland’s Blue Point Capital Partners in 2021.

Neil Sethi, CEO of Transtar’s holding company, NexaMotion, said he doesn’t plan to slow down, either.

“We have 100 locations now,” Sethi said. “We’ll probably double or triple that ... in the next three to ve years.”

Transtar, which began life in the 1970s as a company selling remanufactured transmissions and parts, sells a variety of aftermarket automotive products, mostly to independent repair shops around the company.

“We

e company’s 100 locations are warehouses and distribution points, mostly in the U.S. but also in Canada and Puerto Rico. It has been leasing space for new warehouses recently, including locations in Brook Park and Mentor that Sethi said opened in the last nine months.

“We used to have one location in (Greater) Cleveland, and now we have three,” Sethi said. It also has bought other companies that also distribute automotive parts and supplies and had warehouses in other parts of the country.

Most recently, Transtar has opened warehouses in Texas, Florida, and Pennsylvania. One, in Tampa, Florida, opened May 13, and another in Fort Worth, Texas, was announced in April.

have 100 locations now. We’ll probably double or triple that ... in the next three to ve years.”

e company does not disclose its revenues, but Sethi said it’s growing at a double-digit percentage rate that has accelerated since Blue Point bought a controlling stake in early 2021. e company employs about 1,300 people, Sethi said.

Neither Transtar nor Blue Point disclosed what the private equity rm invested in the company, but Sethi said it bought a controlling stake that has been transformative by giving Transtar the capital and backing it needs to buy other companies and open new locations.

“IT was the catalyst for a lot of acquisitions and growth,” Sethi said.

Transtar has been growing by buying other companies with warehouse and distribution operations, most notably Arch Auto Parts, a company with 21 distribution centers in New York City — a market where Transtar previously had only one. e company also has expanded its product o erings. In April it announced it will begin o ering recycled OEM engines to auto shop customers.

e company has been spending its money on horizontal acquisitions, and Sethi said it has no intention of going vertical through purchases of auto parts manufacturers, auto repair shops or direct-to-consumer retailers.

NexaMotion also has sold part of its operations not related to Transtar. In May, it announced it was selling its CoverFlexx Group, a coatings and paint company, to Axalta Coating Systems. Terms of

the deals were not disclosed, but Sethi said CoverFlexx, which has more than 120 employees, had sales of about $80 million per year. at deal is only awaiting regulatory approval to close, Sethi said.

On the buy side, Sethi gures he’s doing well with his current strategy so he plans to continue it.

“It’s been really exciting for us because we’re able to grow in two ways,” Sethi said. “One is to buy these businesses, partner with them, make sure there’s an alignment of value, and then invest and grow those businesses even more. e second is we’re creating space in our current footprint and adding product lines.”

Sethi said his controlling owners at Blue Point have not given him a speci ed amount of capital to deploy, nor any limits on how much he can invest. Blue Point does closely watch his acquisitions and their results, though.

Blue Point partner Brian Castleberry, a Transtar director, said he and his rm are on board with Sethi’s strategy.

“ e strategy Neil laid out is de nitely the strategy we’ve made good progress with in recent years,” Castleberry said. “And we look forward to continuing those e orts with the company. Neil and his team have done a great job of nding acquisition candidates.”

Sethi, who said he’s constantly looking at new deals and doing diligence on companies he intends to buy, predicted Transtar will announce further acquisitions this year.

“ ere are a number of other distributors we’d like to partner with,” Seth said. By that, he said, he means buying them and bringing their management and other sta on board at Transtar.

Sequoia Financial lands chief strategy of cer

By Jeremy Nobile

Sequoia Financial Group said it has hired Chris om to the newly created role of chief strategy and partnerships o cer for the company.

A key purpose for this position is to lead e orts that build upon the Akron-based wealth management rm’s strategic business partnerships.

Sethi said the company is enjoying some tailwinds that have so far been persistent — and that he thinks will continue.

As vehicles become more expensive, people tend to hang on to them longer, he said, especially when interest rates are higher. at trend is supported by vehicles that last longer than they did a decade or two ago, Sethi added. at necessitates more repair work and more shops to do the work, which increases Transtar’s customer base.

Most of the company’s current products are directed at vehicles with internal combustion engines, but Sethi said he’s not nervous about the advent of electric vehicles. EVs still will need plenty of the parts the company already carries, such as parts for brakes and suspension systems, and a lot of new parts that Transtar will add.

For instance, Sethi said the company is exploring how it might supply repair shops with batteries that eventually will be needed when EVs’ original batteries wear out.

Nor is Sethi concerned about Blue Point’s exit, which he knows will come.

Castleberry said his company’s typical investment is for ve years but said there’s no hard and fast rule governing how long it stays in any one company.

Eventually, it will sell its stake though. Sethi said he’ll cross that bridge when he gets to it, but predicts he might just end up with another private equity owner.

at’s ne, he said. Transtar already was doing well before the Blue Point investment, and any future investor is bound to want it to grow further, Sethi said.

In terms of existing partnerships, the company notes that it is an active member of the custodial referral programs of Fidelity and Schwab and that it has collaborated with Cleveland’s Cohen & Co. for more than 30 years — Cohen and Sequoia operate independently from one another but share some common ownership. om, a member of the Sequoia executive committee and who will report to Sequoia founder and CEO Tom Haught, will also lead the rm’s brand strategy and marketing e orts.

“Chris is a well-rounded leader with experience building and managing referral partnerships with professional services rms.”

“Chris is a well-rounded leader with experience building and managing referral partnerships with professional services rms,” Haught said in a statement. “We are excited to have him on our leadership team, where he will be instrumental in guiding our strategy, partnerships and marketing initiatives.” om comes to Sequoia from RWA Wealth Partners, a Boston-based company established in 2023 following the merger of the rms Adviser Investments and Ropes Wealth Advisors. e RWA enterprise represented approximately $15 billion in client assets around its formation. om was most recently that rm’s director of business development and head of wealth services. Sequoia, founded in 1991, reported approximately $18 billion in regulatory assets under management (AUM) and 250 rmwide employees as of a public ling dated May 9.  Sequoia is backed by private equity rms Kudu Investment Management (New York) and Valeas Capital Partners (San Francisco). e former acquired a minority stake in Sequoia in 2020 and while Valeas did the same in 2022 while committing $200 million to the company’s growth strategy.

Tom Haught, Sequoia Financial Group CEO

Transtar Industries’ headquarters in Walton Hills | DAN SHINGLER

Neil Sethi, CEO of Transtar’s holding company, NexaMotion

MARIJUANA

“ ere is typically an increase (in price) with adult-use, and that percentage increase di ers by state,” said Tripp McDermott, chief operating o cer with Chicagobased multi-state operator Verano, which operates a Level II cultivation and processing facility in Canton plus ve Ohio dispensaries branded as Zen Leaf. “We are evaluating the landscape right now. But I think you see that it is fairly similar to medical pricing.”

“As products are priced di erently state-to-state and each market has its own determining factors, pricing in Ohio, from our perspective, will ultimately depend on supply and demand, the opportunity for discounts and promotions, etc., so we will need to see how the market plays out,” said Paul Chialdikas, central regional leader for New York-based multistate operator Curaleaf.

While much of this is up in the air, prices on marijuana ower are already beginning to increase some at the wholesale level as retailers begin stocking up in anticipation of adult-use sales, said Andy Rayburn, CEO of Buckeye Relief, a vertically integrated marijuana company with three Ohio dispensaries branded as Amplify.

“We are seeing increased orders from a signi cant number of dispensaries, but not nearly all of them just yet,” Rayburn said.

Rayburn, who is also president of OHCANN, the state’s cannabis industry trade group, suggested that retail prices on adult-use products could, in general, be roughly 20% higher than medical products at the outset of rec sales and come down over time as the market further matures and supply increases.

“I would expect signi cant new ower capacity entering the market in the second half of 2025,” Rayburn said, “which will pressure ower prices down.”

Still, the “challenge early, especially in the rst six months of the new program, will be ensuring adequate supply, especially for ower,” he added.

Projecting big sales, no matter the cost

Based on what’s transpired in other markets that have added adult-use sales to medical programs, the prevailing guidance among industry players and observers is for the public to expect high prices when rec sales commence due to strong demand and low supply.

But what exactly represents a high price or low supply in a market like Ohio that has long grappled with comparatively high prices despite an oversupply of product?  at’s impossible to say until adult-use sales go live and yet there’s been some time to gauge consumer participation, as ocials like Chialdikas point out.

According to Statista, an estimated 22% of Ohioans used cannabis in the past year, which amounts to nearly 2.6 million people.

Inventory packaged for sale

Inventory that could be sold or used in marijuana products

SOURCE: OHIO DIVISION OF CANNABIS CONTROL, CRAIN’S REPORTING

Now, it’s extremely unlikely all those people will be buying legal cannabis at licensed dispensaries.

But the takeaway is that there’s a massively larger potential customer pool for rec marijuana compared with the fewer than 166,000 medical marijuana patients currently registered in the state.

Realistic expectations project demand for marijuana products to double or triple in short order under the adult-use program. By 2030, annual legal adult-use marijuana sales in Ohio could top $2.8 billion, according to estimates from cannabis research rm New Frontier Data.

is all comes in the wake of a medical market in the state that has been largely underwhelming from an industry standpoint. Annual medical sales totaled $484 million in 2023. Compared with 2022, retail sales grew last year by a paltry 1.2%.

As of May 27, 2024, medical marijuana sales have totaled roughly $220 million, according to the Ohio Division of Cannabis Control. at puts medical sales on pace for its rst down year in Ohio since they began in 2019.

“My estimate is that over the last year and a half, the large majority of license holders in Ohio have been losing money,” Rayburn said. “ e new market will double demand on day one and bring relief to those companies that have been funding losses for a pretty long time.”

With a potentially signi cant

Marijuana cultivation capacity

Maximum cultivation area includes all Division of Cannabis Control authority to issue cultivation area expansions pursuant to Ohio Admin. Code 3796:2-1-09(A), including up to 75,000 square feet for Level 1 cultivators and up to 9,000 square feet for Level 2 cultivators. Operational area is an estimate of current licensees.

SOURCE: OHIO DIVISION OF CANNABIS CONTROL, CRAIN’S REPORTING

new adult-use customer base in front of it, the cannabis industry has been gearing up accordingly but cautiously.  ere’s always the risk of losing money producing too much product that doesn’t sell. at’s why marijuana cultivation capacity has increased a little bit, but not yet dramatically.

According to DCC, just 41.7% of the state’s total allotted cultivation capacity is authorized for use at this time, and just 27.2% of that is in operation now. at leaves

However, the supply of products ready for sale has meaningfully increased: ower supply is up 69%; oils and solids for vaporization are up 78%; edibles are up by 90%.

So will the market be undersupplied as adult-use sales begin?

At this point, it’s impossible to say.

And DCC has no position on that, though it’s something that the agency will be paying attention to, said spokesman James Crawford.

Importance of pricing

Besides being of inherent interest to consumers, where prices begin and eventually settle will be important factors in how competitive Ohio’s new adult-use market is with both illicit markets and neighboring states. e more competitive and accessible the market is, the greater the sales will be for companies, which translates to more tax revenue for the state and its municipalities.

Capturing revenue — and tax dollars — from cannabis that’s being purchased illegally or across state borders is, after all, a key purpose of Ohio’s medical and recreational marijuana laws.

High prices have been regularly cited as one of the public’s top frustrations with the medical marijuana program in surveys conducted by Ohio State University’s Drug Enforcement and Policy Center.

In a September 2023 report, OSU’s Drug Enforcement and Policy Center (DEPC) found that while retail prices on medical marijuana products in Ohio have been coming down, they were still about 70% more on average compared to Michigan dispensaries.

At the time that the DEPC study came out, medical marijuana ower was retailing in Ohio around an average of $17.08 per one-tenth of an ounce (or the so-called “daily unit”, which equals 2.83 grams) and about $6 per gram.

While there are ups and downs, those prices haven’t really moved much. As of May 27, the average price for one-tenth of an ounce was $18.19, according to DCC, and roughly $6.43 per gram.

58.3% of permitted space unauthorized and unused.   Nonetheless, the Ohio cannabis industry has been preparing an already built-up supply for the adult-use market. Flower or manufactured products that have been made under the medical program can be sold to adult-use customers so long as they’re labeled accordingly.

Between June 2023 and June 2024, the state supply of bulk ower and shake has decreased by 19% and 9%, respectively.

“Basically, what we have seen in other states as they transition is that initial pricing is high due to increase in demand and low supply, which later stabilizes as more growers come online. If we were being super optimistic, you would expect new supply to come online maybe two to three months after approval of a dual license, unless existing medical marijuana growers were able to prepare for cultivation ahead of time,” said DEPC administrative director Jana Hrdinova. “Regardless, I would anticipate for prices to stabilize within 12 to 18 months, as the industry adjusts to Ohio’s new levels of demand.”

“Of course, unlike some of the earlier states, Ohio’s industry has to take into account the fact of Michigan being within an easy driving distance for most of the state,” she added, “which might affect how they can price their product, although that seemed to have only limited impact on the medical providers.”

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

SOLAR

e foundation joins Bloomberg, which has pledged to use a portion of a $200 million fund to augment the $156 million in federal Solar for All dollars recently awarded to Cleveland-based Growth Opps.

e grant, funded by the In ation Reduction Act, will be used to install residential solar in lowand middle-income communities, including Cleveland and Akron.

Growth Opps will use the grant to leverage private and philanthropic funding for a comprehensive solar installation program involving 31 communities in eight Midwestern states. e goal is not only to o er cleaner energy but to reduce the utility burden and create quality jobs.

“We are putting approximately 29,000 solar rooftop units on the roofs of low-income households,” Jeans said. “In our application for ‘Solar for All,’ we said we needed to do that at a cost they can a ord, and the cost is free. ere will be no cost to these households we were very intentional about that.”

e program also will use upfront tax credits and a revolving loan fund of $50 million to $60 million to defray any roof repair or stabilization costs.

Deploying solar

where it’s needed

e residential solar program will be deployed to Cleveland residents who spend a disproportionate amount — at least 6.6% of household income — on energy bills, nearly double the national average of 3.6%.

Adding solar is estimated to save those communities $19 million in energy costs, eliminate 160,000 tons of carbon emissions annually and, due to the need to repair and install the systems, create more than 1,000 good-paying jobs.

In 2023, 53% of the new electricity capacity added to the nation’s power grid came from solar. With a massive 32.4 gigawatts (GW) of new electricity generated that year. Solar broke records marking the rst time a renewable energy source added a majority of new capacity the overall grid electricity.

In Northeast Ohio, clean tech — a term for the innovations around renewable energy, including solar — made up the

largest category of startups representing more than $150 million in investment in 2022. And even as national trends saw declines in the venture market, from 2021 to 2022, the region saw venture capital deployment in the clean tech sector double.

“We are a supply chain region,” said Fund for Our Economic Future President Bethia Burke last month at the City Club of Cleveland’s CleanTech NEO event.

Ranking 5th in 2023, Ohio placed in the top 10 solar states for the rst time in more than a decade. According to the Solar Energy Industries Association, in 2023 the state’s solar capacity grew by a whopping 1,230% year over year, fueled by utility-scale and rural-agricultural solar investments.

e state’s oversized in solar manufacturing bodes well as panel prices fall making solar a ordable for residential use and as the country looks to build out a domestic solar supply chain.

Burke stressed that logistics, advanced material science and manufacturing uniquely position the state and Northeast Ohio to develop, make and ship the components needed for solar power.

e market goes beyond panels, though, and is made up of everything from engineering and design; chemicals and glass; and electrical and racking systems all part of the more than 250 companies that already exists across the state.

e federal government is pledging more than $300 billion in combating climate change using an integrated economic policy, said Nana Menya Ayensu, special assistant to the president in the White House’s Climate Policy o ce, at the City Club event.

To stimulate the nascent solar industry, that policy is designed to assist in creating demand and supporting the supply while also facilitating the build-out of a robust domestic supply chain — all things that Northeast Ohio has a history of and excels at.

“We see it as very important to grow the solar industry here,” Ayensu told the City Club audience. “Long-term is a really big prize and (has) associated benets of fostering a new economic growth.”

Lawmakers warm to solar

Despite the federal government’s push toward solar power, state law has been less accommo-

Plecha said research has shown that detection in radiology is more e ective using both a radiologist and AI software rather than either of them separately. UH radiologists have been participating in learning sessions, she said, to develop their understanding of the software. e technology may pick up ndings that aren’t real, she said, so it’s important for a radiologist to verify them.

dating. A measure passed by the state legislator in the last general assembly allows local government o cials power to halt large solar projects based even on private property.

e measure has been used most in rural areas to push back on arrays slated for agricultural land.

In contrast, a bipartisan Ohio House bill would establish a community solar pilot program, allowing homeowners to take advantage of a 1,750-megawatt program that includes solar power generated on redeveloped distressed and vacant properties in the state’s urban brown eld areas.

e bill had a seventh hearing in the House Public Utilities Committee on May 22. In June, a companion Senate bill was introduced that would help speed up the measure’s passage before the end of the legislative session.

e two bills are a good sign that negative attitudes toward solar are softening.

America Is All In commissioned an online survey in May of 969 Ohio registered voters that shows there is bipartisan support for IRA’s “Solar for All” program.

Asked about the state receiving $156 million for “Solar of All,” the survey found that 84% of Democrats, 68% of Independents and 56% of Republicans said they strongly or somewhat supported the program.

Only 15% of Republicans strongly opposed the residential program, followed by 7% of Independents and only 1% of Democrats.

Independents and renters at 13% were most likely to say they were “not sure” about the clean energy program, along with only 11% of Republicans and respondents with no college degree.

Whether the region’s governmental, philanthropic, civic and private pull will lead to a successful build-out of a Northeast Ohio solar economy remains to be seen — but the region is o to a good start.

“If you look at the di erences between which projects have been successful and which projects have not been successful, a major di erence comes from how they engage the local communities to rally support, and how durable job opportunities are created within those communities,” Ayensu said.

And that, he says, is what Ohio already is doing.

UH is collecting and assessing data from this initial pilot phase of the partnership. Plecha said the health system will evaluate the software’s e ectiveness in improving patient outcomes. at information will in uence its long-term plans for the software, she said.

In May, UH inked a new strategic partnership with Siemens Healthineers, a German health care services company, to bring a series of technology upgrades to

the health system.

In a recent interview with Crain’s, UH CEO Dr. Cli Megerian said it’s important to approach AI’s role in the health care space with the right amount of excitement and caution.

In certain areas, such as predictive analytics, AI can be used to improve patient outcomes by sorting through data to see if patients may have a higher incidence for serious conditions like sepsis, he said.

However, Megerian said it would be unwise to think of AI as a replacement for humans. While it has the potential to supplement or augment a health care provider or administrator, issues could arise if AI was left unsupervised and made an error in developing an algorithm for patient management.

“If that’s perpetuated unfettered, you could harm people,” he said. “I think we need to be very, very careful and not jump the gun and take baby steps as it relates to the implementation of arti cial intelligence.”

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PEOPLE ON THE MOVE

BANKING

ERIEBANK

CONSTRUCTION

International Countertop Consultants, Inc.

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Brennan Manna Diamond

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Brennan Manna Diamond

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Roetzel & Andress

ERIEBANK is pleased to announce the appointment of Jodi Barnes as Assistant Vice President and Commercial Of ce Manager. Jodi will oversee the opening and management of ERIEBANK’s new location at Crocker Park, set to launch this summer. Bringing over 25 years of banking experience, Jodi will develop and manage a team of bankers dedicated to providing best-in-class service, building relationships with area businesses and clients, and enhancing the Bank’s community involvement.

BANKING

West eld Bank

Robert Amos steps into the role of VP, premium nance business development of cer for West eld Bank’s agency banking team. Robert joined West eld Bank in 2015 and in his new role he will focus on bringing value and growth to independent insurance agencies.

BANKING

West eld Bank

West eld Bank

We are thrilled to announce our growth with the addition of Eddie Kieler, a seasoned Project Manager with over 20 years of experience, to our team. Eddie, a Building Construction Management graduate, has successfully managed large-scale projects exceeding $18 million. Known for his strategic vision, leadership, and ability to deliver on time and within budget, Eddie’s expertise will be a signi cant asset to our team. We look forward to his contributions to our continued success and innovation.

welcomes Jason Myers to our team, serving in the role of agency banking commercial loan of cer. Jason brings to the team over 25 years of banking experience and is responsible for the development of West eld Bank’s agency banking nancial solutions to independent agencies nationwide.

CONSTRUCTION

Marous Brothers Construction

Marous Brothers Construction, the award-winning, multi-generational construction company based in Willoughby, is pleased to announce that Michael Kerr has been promoted from Senior Project Manager to Director of Preconstruction in our Special Projects Group. Since joining us in September of 2022, Michael has played a pivotal role in the success of several of our Special Projects Group’s most signi cant projects, including RSM Cleveland in Key Tower and Alson Jewelers’ expansion and remodel.

HEALTH CARE

Western Reserve Hospital

Gastroenterologist, Jason Abdallah, MD has joined Western Reserve Hospital Physicians, Inc. Dr. Abdallah completed his internal medicine residency and gastroenterology fellowship at MetroHealth Medical Center at Case Western Reserve University. He previously served patients at University Hospitals in Northeast Ohio as well as AdventHealth Medical Group. He now serves patients at Western Reserve Health Center in Hudson, OH.

Brennan Manna Diamond is pleased to welcome Shelly LaSalvia to their Cleveland of ce. Shelly joins BMD as a Member focusing her practice on business law, real estate law, and commercial nance. Shelly provides legal counsel to corporate clients in various areas such as acquisitions, dispositions, capital raises, fund formation, traditional nance, private equity, joint ventures, succession planning, and bankruptcy and creditors’ rights services.

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Brennan Manna Diamond

Brennan Manna Diamond is pleased to welcome Michael Sneeringer to their Cleveland and Bonita Springs of ces. Michael joins BMD as a Member focusing his practice on estate planning, estate administration, and wealth preservation within the Estate, Tax & Wealth Planning sector. With a commitment to protecting clients’ assets and legacies, Michael adds depth to BMD’s established Estate, Tax & Wealth Planning practice group.

Brennan Manna Diamond is pleased to welcome Scott Norcross to their Cleveland of ce. Joining BMD as a member, Scott is a go-to attorney for business and real estate, as well as esports, gaming, and traditional sports, including player representation. Scott is a trusted esports advisor, facilitating deals that maximize clients’ opportunities in the rapidly expanding industry.

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Brennan Manna Diamond

Brennan Manna Diamond is pleased to welcome Paige Rabatin to their Cleveland of ce. Joining BMD as a Partner, Paige advises clients in commercial business transactions, real estate transactions, athletics, and entertainment matters. She excels in negotiating favorable deals for clients in the sports and entertainment industries and provides guidance in traditional disputes, corporate transactions, and commercial property deals.

Lori R. Kilpeck recently joined Roetzel & Andress as a shareholder in the rm’s Corporate, Tax & Transactional group. She will focus her practice on estate planning, probate, estate and trust administration, probate and trust litigation, elder care, and guardianship law. Lori received her J.D. from the Cleveland-Marshall College of Law and a B.A. from Cleveland State University. She is admitted to practice in both Ohio and Florida.

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Taft

Daniela Paez is a partner in Taft’s Commercial Litigation practice. She is a trusted advocate who focuses her practice on nancial services litigation, duciary disputes, and critical motions and appeals. Daniela’s clients include major nancial institutions, trust companies, corporate duciaries, Fortune 500 corporations, and private companies. She regularly helps clients navigate a wide range of issues related to duciary and wealth transfer disputes, broker-dealer and securities matters.

NONPROFITS

OhioGuidestone

OhioGuidestone welcomes Mary Wilson Wheelock as its new Chief Advancement Of cer, bringing 20 years of leadership in fundraising. Mary’s achievements include establishing the VA’s rst ALSA Certi ed Center of Excellence, supporting the Cleveland Museum of Art’s $350 million expansion campaign, and doubling the number of major gift prospects at MetroHealth. Her strategic vision will expand OhioGuidestone’s community impact and make a lasting difference in the lives of those they serve.