Brook Park dome may be good business for Browns, but experts warn it’s bad public policy | Joe Scalzo
There’s an old joke about economists that goes, “What happens when you put 10 economists in a room? You get 11 opinions.” at’s not true when it comes to stadiums.
“You can’t get two economists to agree on anything, but it’s unanimous to every economist in the country that the impact of a new stadium is something between nothing and not very much,” Neil DeMause, editor of the website FieldofSchemes.com, said in an interview with Crain’s Cleveland last spring. “You might get a small bene t, like $50 million or $100 million, but when you’re spending $1 billion or $2 billion, it’s just money down the drain.”
Parkland Terrace sells for $1.5M in May eld Heights
By Stan Bullard
Sandip akkar and Abe Shehadeh are playing a long game in the o ce market. ey and their investors are repeatedly diving in to buy, seizing opportunity in a context where traditional competitors for even small buildings are staying on the sidelines.
The pair just bought the granite-clad office building called Parkland Terrace, 6120 Parkland Drive at Landerhaven Corporate Center in Mayfield Heights, for $1.5 million. That's far less than the
$2.8 million market value Cuyahoga County assigns it for taxes and the $4 million the out-of-town seller paid for it.
This past summer, the duo also bagged the Midway Plaza O ce Building in Elyria (near Midway Mall) and the Westlake Centre building (originally part of the former King James O ce Park) in Westlake. ey see the hair-raising o ce shakeout as a reasoned opportunity and say more deals are in the works.
Cuyahoga County rolls out property tax assistance pilot
By Kim Palmer
Cuyahoga County is piloting a $5 million property tax assistance program to stabilize homeownership for aging residents struggling with tax delinquencies and facing surging home valuations.
e program, announced on Monday, Oct. 21 by County Treasurer Brad Cromes, provides up to $10,000 in onetime direct assistance to quali ed County taxpayers 70 years or older with an active tax delinquency.
program available starting in December and be fully operational for tax collection starting in January, when those rst tax bill are coming out,” Cromes told Crain’s. e program will allocate $2.5 million from the County’s Delinquent Tax and Assessment Collection fund for two years. Of that total, $2 million will go to direct taxpayer assistance each year, while the remaining $500,000 a year will go toward housing counseling services with CHN Housing Partners.
See OFFICE on Page 14 See TAX on Page 17
“ e intention is to have sign-up for the
CARE Amazon One Medical and Cleveland Clinic partner on Northeast Ohio primary care of ces. PAGE 4
Ohio added 13,500 jobs last month even as the jobless rate didn’t move
By Scott Suttell
Ohio’s unemployment rate in September was 4.5%, unchanged from August, but that doesn’t tell the full story of the job market. Not close.
The Ohio Department of Job and Family Services (ODJFS) on Friday, Oct. 18, reported that the state added 13,500 jobs last month even as the jobless rate didn’t move. Ohio’s nonagricultural wage and salary employment increased to 5,675,600 in September from a revised 5,662,100 in August, according to ODJFS data.
the government sector each added 4,000 jobs.
Molly Bryden, a researcher with Policy Matters Ohio, a liberal policy-research group, said in an analysis of the September data, “Consistent gains in construction jobs are a good sign. We’re hopeful recent fiscal policy decisions can reverse the downward trend in manufacturing jobs over the past few months. Interest rate cuts offer an opportunity to mitigate the contraction in the manufacturing industry — which has a large presence in Ohio — that we’ve observed this year.”
One much-watched data point — the labor force participation rate — is trending in the right direction in Ohio. ODJFS reported that the rate was 62.4%, up from 62.3% in August, and up from 61.9% in September 2023. The national labor force participation rate is slightly higher than Ohio’s, at 62.7% in September.
There were 263,000 unemployed Ohio workers in September, a number that also was unchanged from August. Over the last 12 months, though, the number is up by 56,000, from 207,000 in September 2023. The state’s unemployment rate a year ago: 3.6%.
Unemployment rate steady in September Fund for Our Economic Future to become incubator for startup
Ohio’s unemployment rate remains above the U.S. rate, which was 4.1%, down from 4.2% in August and up from the September 2023 rate of 3.8%.
ODJFS said Ohio’s employment gains in September were spread fairly evenly across sectors, It reported that employment in goodsproducing industries increased by 5,500 during the month, with gains in construction (6,700) outpacing a loss of 1,200 jobs in manufacturing. Meanwhile, the private service-providing sector and
The Buckeye Institute, a conservative think tank based in Columbus that each month offers an analysis of the state jobs data, was encouraged by the labor force participation improvement.
Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute, noted that the increase, though slight, was an indication “that more people are looking for work.”
Hederman cautioned, though, that while the September report was strong, growth for all of 2024 “remains slow, with some down months slowing the overall upward trend.”
Power Up Local aims to drive locally produced clean energy projects
By Kim Palmer
Months after publishing a comprehensive guide to building a local green economy, the Fund for Our Economic Future announced it will serve as an incubator for a clean energy startup.
Power Up Local is a unique nonprofit headed by Executive Director Dan Gray, a veteran consumer advocate for the transition to clean energy. The organization was created to work with public utilities, city and county leaders and other partners to drive more locally produced clean energy projects.
Gray is staffing the firm with subject-matter experts to take advantage of unprecedented levels of funding to help local institutions quickly and effectively make the energy transition.
“We believe the real opportunity is at the local policy level with the local institutions that have a lot of potential capacity to implement smart clean-energy policies and projects but don’t necessarily have the technical or regulatory knowledge or resources to do it,” Gray said.
Power Up Local was designed, he added, to help navigate the path toward the massive federal investment and newly available tax incentives, as well as burgeoning investor markets associated with the build-out of clean power generation projects.
“There is a whole lot of investments accessible now, both in grants and with the loosening up of regulations around investment tax credits, which is one of the main drivers of bringing folks to the table to have more serious conversations than there has been in the past,” Gray said.
Before partnering with the Fund, Gray was part of the team that brought $285 million in EPA solar and Climate Pollution Reduction grants to the region and wanted to “keep the momentum going.”
“We brought a lot of the industry stakeholders, investors, developers and funders together with that work and now have all of these relationships. Power Up Local is about keeping that momentum going,” he added.
“We
energy generation and fuel production rather than through a market — a crucial win for local projects.
The targeted, competitive grant program provides added tax credits and bonus funding for the redevelopment of underserved and formerly polluted areas.
The program deals with lowincome neighborhoods, such as Cleveland’s Hough neighborhood, where the Lake Shore Power Station, a coal plant, polluted
were interested in not just checking a sustainability box but in designing projects with immediate and tangible benefits for local communities.”
In his new position at Power Up Local — which also will receive both resources and about $1 million in financial support from the Cleveland Foundation and the George Gund Foundation — Gray said another top priority is economic development and community benefits from new energy development projects.
There will be an emphasis on direct community benefits from reduced rates, a more resilient energy infrastructure and also with workforce and economic development growth.
“We were interested in not just checking a sustainability box but in designing projects with immediate and tangible benefits for local communities,” Gray said.
Provisions within the Inflation Reduction Act (IRA), he said, include a direct pay component enabling tax-exempt entities to receive direct tax credits for clean
the residential area for decades and energy industry jobs were lost when it shut down.
“There was an important change in the law regarding incentives for low-income communities, for the domestic supply chain, for qualified energy communities that have suffering pollution and disinvestment,” Gray said.
Power Up Local is working on Cleveland’s Site Readiness Fund, the recent multi-county landfill solar and battery project, and is shortlisting other potential projects. Gray’s goal is to spin out from the Fund into an independent nonprofit by 2027.
“We’ll be building a small team to work within Power Up Local while also looking to retain leading experts in tax credit financing, engineering project design and supply chains to our muscle on projects,” Gray said.
Power Up Local is working on Cleveland’s Site Readiness Fund, the recent multi-county landfill solar and battery project, and is shortlisting other potential projects. | LUCAS FARIA/U.S. OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY
Dan Gray, Power Up Local executive director
KeyCorp could be back in market for a bank deal next year
By Jeremy Nobile
KeyCorp could be back in the market for its next bank acquisition in the foreseeable future.
Key chairman and CEO Chris Gorman told investors during the Q&A portion of the company’s third-quarter earnings call on Thursday, Oct. 17, that he suspects consolidation in the banking industry will pick up in the quarters ahead and indicated that Key could be positioned as a buyer as it considers ways to put some of its capital to work.
This perspective comes as Key looks to complete a large deal with The Bank of Nova Scotia (i.e., Scotiabank), which is in the process of acquiring a 14.9% stake in the business that will make it Key’s largest minority shareholder.
That transaction will raise $2.8 billion for the Cleveland-based parent of KeyBank, significantly boosting its capital levels.
Scotiabank completed a portion of its deal — approximately $821 million of it — at the end of August.
The remainder of the transaction, subject to regulatory approvals, is expected to close during the first quarter of 2025.
Some of the proceeds of that deal so far have been applied to a restructuring of Key’s securities portfolio with higher-yielding assets. Key previously disclosed that it would record a $700 million loss in the third quarter related to the sale of $7 billion in investment securities as it reconfigures that portfolio.
While this contributed to an approximately 55% decrease in quarterly revenue for Key — which totaled $695 million in the third quarter compared to $1.5
billion in the second quarter — Chief Financial Officer Clark Khayat notes that quarterly revenue was up 3% when adjusting for the loss associated with selling off a chunk of the securities portfolio and replacing it with better investments.
When factoring in the additional capital coming from the Scotiabank deal, Gorman notes that Key’s pro forma Common Equity Tier 1 (CET1) ratio will be at 12%.
The minimum CET1 ratio required of U.S. banks is 4.5%.
While well-capitalized banks will have ratios higher than that minimum, 12% would be particularly high, which gives the company runway to consider a bank deal.
“Clearly we have dry powder,” Gorman told investors, adding that if there is “dislocation in the market, we could take advantage of that.”
Gorman said that in his experience, when industry consolidation happens, “it happens in waves.”
“Clearly, with this additional capital, we would be wellpositioned if and when that were to happen,” Gorman said. “It is not something we are focused on now, however.”
Key’s last bank acquisition involved the roll up of First Niagara Financial Group of Buffalo, New York. That deal, valued at $4.1 billion at the time, was announced in 2015 and completed in 2016 under former Key CEO Beth Mooney.
For third-quarter 2024, Key reported a net loss from continuing operations of $447 million (47 cents per common share) or adjusted net income of $290 million, (30 cents per common share).
The company has about $189.76 billion in total assets.
Lawsuits claim more than $5M in damages over CBIZ data breach
By Jeremy Nobile
Some recently filed lawsuits in federal court claim more than $5 million in damages for clients of CBIZ Benefits & Insurance Services Inc., a division of CBIZ Inc., in relation to a data breach that occurred at the company earlier this year.
The apparent data breach leaked the personal information of CBIZ clients’ retired employees, according to the company, which reported the incident to the Office of the Maine Attorney General on Aug. 28.
ilar claims about the company failing to properly secure and safeguard the personally identifiable information that it collected and maintained as part of its regular business practices, including names, dates of birth and Social Security numbers.
Each case also indicates that there are more than 100 members in its proposed class.
Through a company spokesperson, CBIZ declined to comment on how many of its clients may have been compromised in the data breach. An attorney for the firm is not yet listed in court records.
The apparent data breach leaked the personal information of CBIZ clients’ retired employees.
In a related company filing, CBIZ stated that it learned of the data breach on June 24 and determined that the leak related to its clients’ retiree health and welfare plans.
The lawsuits against CBIZ in relation to this were filed in U.S. District Court for the Northern District of Ohio between Oct. 3 and Oct. 8 and include: Zimmerman v. CBIZ Benefits & Insurance Services Inc.; Fasano v. CBIZ Benefits & Insurance Services Inc.; and Giddings v. CBIZ Benefits & Insurance Services Inc.
Each case is filed as a classaction complaint and makes sim-
The company did, however, share a general statement about the data breach, which it said was tied to a “vulnerability on a client web portal.”
“Upon identifying the vulnerability, our internal IT team conducted a comprehensive review of the targeted portal and fixed the vulnerability the same day it was initially identified. CBIZ worked with a nationally recognized cyber security consulting firm, to assist with the investigation of the incident and the FBI,” CBIZ said. “The identified vulnerability impacted a very small number of our clients. It was confirmed that the vulnerability was isolated to one web portal which sits outside the CBIZ internal net-
work and there was no penetration to the CBIZ internal network.”
The company added, “CBIZ contacted all clients impacted by the incident, provided written notification and established a call center to answer any questions from clients or impacted parties. Any impacted party where a Social Security number may have been acquired is being offered complimentary credit monitoring services for two years.”
Among many claims, the lawsuits allege that while CBIZ communicated the data breach to clients, those notices lacked possibly important details.
“Omitted from the Notice Letter were the identity of the cybercriminals who perpetrated this Data Breach, the details of the root cause of the Data Breach, the vulnerabilities exploited, and the remedial measures undertaken to ensure such a breach does not occur again,” one of the suits claims. “To date, these critical facts have not been explained or clarified to Plaintiff and Class Members, who retain a vested interest in ensuring that their (personally identifiable information) remains protected.”
Attorneys representing the plaintiffs include Gary Mason (Washington, D.C.), Terence Coates (Cincinnati) and Gary Klinger (Chicago).
Crain’s has reached out to these attorneys for comments on their cases.
One Medical, Cleveland Clinic partner on primary care of ces
By Paige Bennett
Amazon One Medical, in partnership with Cleveland Clinic, is planning to open primary care o ces in Northeast Ohio.
e company, a provider of membership-based primary and specialty care services, will roll out its rst o ce in a liation with the Clinic next year, according to a press release issued Oct. 21.
Amazon One Medical o ers same and next-day appointments, on-site lab services and wraparound care. Members also have access to on-demand virtual care services.
health systems across the U.S. e location of the rst o ce is still being determined, but the organizations hope for it to be up and running by the end of 2025, Dr. James Gutierrez, chief of Cleveland Clinic’s Primary Care Institute, said in a phone interview.
Amazon One Medical will own, operate and sta the o ces, while the Clinic will work closely with the organization to help ensure quality standards are met for patients, Gutierrez said.
and that Amazon One Medical will complement the health system’s existing primary care o erings.
“We look forward to collaborating with Cleveland Clinic to deliver a high-quality patient experience and seamless continuation of care across all settings to deliver the highest levels of health, care and value,” Trent Green, CEO at Amazon One Medical, said in a news release.
e Clinic and Amazon One Medical say they will work together to decide where to introduce new facilities in the region over the next few years.
Amazon One Medical and the Clinic say they will work together to decide where to introduce new facilities in the region over the next few years.
e organizations say their relationship will “ensure that patients have increased access to seamless coordinated care” through Amazon One Medical’s care model and the Clinic’s network of specialists, hospitals and facilities.
E-commerce giant Amazon acquired primary care provider One Medical in a $3.9 billion deal in 2023. Since then, the company has been expanding its physical footprint with new o ces and partnerships with
Gutierrez described primary care is the “front door to the health care system” and said it’s critical for detecting and preventing diseases. e Clinic has more than 500 primary care providers across more than 60 locations across Northeast Ohio, but the health system is constantly searching for opportunities for growth, he said.
Gutierrez said the Clinic is excited about the opportunity to deliver care to new populations, including national and local employers. Amazon One Medical says it collaborates with more than 10,000 employers across the country who sponsor membership fees as a bene t for their employees and dependents.
Cleveland Clinic President and CEO Dr. Tom Mihaljevic said in the news release that the collaboration “demonstrates a shared commitment from both organizations to meet the needs of our patients and to enhance the care we provide to our communities”
“Teaming up with Cleveland Clinic advances our mission of improving the health care experience, bringing our human-centered and technology-powered model to individuals and employers in the greater Cleveland area.”
In other parts of the country, Amazon One Medical has partnerships with New Jersey’s Hackensack Meridian Health and CommonSpirit Health’s Virginia Mason Franciscan Health in Washington.
Amazon One Medical’s collaboration with the Clinic comes as many other retailers that have ventured into the health care space are now scaling back operations. Last spring, Walmart shuttered its health clinics and virtual care operations, and Walgreens and CVS have closed many retail health clinics.
It's not the only collaboration between tech giant Amazon and Northeast Ohio health care organizations. In 2023, the Center for Health A airs, the regional hospital association, established the Social Determinants of Health Innovation Hub with Amazon Web Services. e center launched a pilot program designed to prevent and reduce suicide deaths in Cuyahoga County.
One Medical has been expanding its physical footprint with new of ces and partnerships since being acquired by Amazon. | ONE MEDICAL
Honoring systems change in workforce development
Deborah Vesy Systems Change Champion Award finalists recognized for inspiring advancement in workforce ecosystem
By Judy Stringer, Crain’s Content Studio
Cathy Belk needs only an instant to recite the characteristics that make her predecessor, Deborah Vesy, a champion in regional workforce development.
Vesy, who retired in 2020 after leading the Deaconess Foundation for decades, is persistent, with the patience and the endurance to continue the work as long as it takes, said Belk, president and CEO. Vesy is also collaborative, having been deeply involved in multi-sector partnerships such as the Cuyahoga County
Workforce Funders Group and Fund for Our Economic Future during her tenure. Vesy is visionary, able to pinpoint gaps and problems in the workforce ecosystem and help figure out how to tackle them, Belk added.
While those traits aren’t explicitly listed in the criteria for the Deborah Vesy Systems Change Champion Award — which honors Vesy’s legacy as a Northeast Ohio changemaker — they are at the heart of each nomination the foundation reviews.
WINNER FINALISTS
COLLABORATE CLEVELAND
Imagine choosing between your health and earning a paycheck. It is an impossible decision and one too many Ohioans are forced to weigh daily, said Abby Westbrook, executive director of Collaborate Cleveland.
About 76% of Ohio workers, or 4.4 million people, don’t have paid leave through their employers, according to the National Partnership for Women & Families.
“Without access to paid family and medical leave, workers must decide between caregiving for themselves or a loved one, their job security and financial stability,” Westbrook said.
After 18 months of advocacy led by Collaborate Cleveland, the City of Cleveland passed legislation in 2023 to offer 12 weeks of paid parental leave to municipal employees — a move that spurred similar policies for Cuyahoga County workers and Cleveland Metropolitan School District teachers.
Westbrook estimates Collaborate Cleveland efforts have extended paid leave to approximately 15,000 individuals.
“Right now, paid leave benefits are distributed in a very inequitable way. Higher wage earners tend to have greater access while workers with lower wages usually do not; therefore, those who need it most are currently left out,” she said. “Paid family leave can serve as a cornerstone of a more inclusive, equitable and sustainable workforce development strategy, especially for women, workers of color, and workers in lower wage jobs.”
THE CENTERS
When The Centers was ready to increase capacity of tax preparation clinics in two of Cleveland’s most disadvantaged communities, the nonprofit community support organization recruited from within. Earlier this year, nine of its El Barrio Workforce Readiness clients completed tax preparation training, and three went on to earn stipends working at the clinics.
Tatiana Dwyer, vice president of marketing and communications, said the newly trained preparers were integral in expanding the clinics’ reach by more than 200% in one year, from 129 to 392. Estimating that the taxes prepared were for households averaging 2.5 individuals, The Centers believes as many as 1,000 individuals benefitted from the free service.
The impact extends beyond tax assistance.
“By increasing access to reputable tax preparation services in these neighborhoods, the program helps disincentivize the use of predatory tax schemes that charge excessive fees and interest rates and make it harder for vulnerable Clevelanders to achieve financial security,” Dwyer said. “It also gives low-wage clients a really nice potential side gig.”
Dwyer said The Centers plans to boost tax preparation training track ahead of the 2025 season and expand access through language assistance and additional clinic locations. The organization also plans to analyze other areas of need that could benefit from a similar peer-to-peer service model.
YOUTH OPPORTUNITIES UNLIMITED
Craig Dorn, president and CEO of Youth Opportunities Unlimited, considers the organization’s new Career Academies initiative a triple win. For more than 40 years, YOU has matched Clevelandarea youth with summer employment. Its mission took a leap by providing over 300 teens in 2024 the unique opportunity to gain valuable work experience and personal exposure to
in-demand careers. The Summer Youth Employment Program also expands the talent pool for in-demand fields.
“Research shows there’s value in a summer job, whether you’re scooping ice cream, working at a recreation center or any job one can think of. We felt we could get a three-for-one value by having that paid summer experience be a deep dive into some careers that maybe aren’t as well known,” Dorn said. “So, the work experience is also career exploration.”
The 12 Career Academies include information technology, manufacturing and health care and a handful of other industries seeking talent.
The academies pair hands-on learning with classroom-style instruction, soft skills training, opportunities to earn industry-recognized credentials, employer site visits and knowledgeable guest speakers. The Career Academies offer a paid work experience, merging the value of a paid summer job with the value of a professional internship, Dorn said.
“One of the great attributes of the many workforce development organizations in our region is leadership who can envision a future that’s different for our communities,” Belk said. “Their willingness to try brand new things and to work really hard on these problems to have that intended impact is a reflection of Deborah and what this award continues to celebrate.”
The winner of the award receives an unrestricted $50,000 grant.
TOWARDS EMPLOYMENT
Systemic inequalities can lead to personal challenges that affect productivity. Yet, employers often find it difficult to offer the necessary resources to help workers overcome these obstacles. To bridge that gap, Towards Employment teamed up with three forwardthinking businesses to embed “success coaches” at worksites.
Towards Employment
President and CEO Jill Rizika explained the first 90 days is an especially vulnerable period for entry-level workers trying to navigate new job demands with personal responsibilities. The onsite coaches meet regularly with new hires to identify any potential barriers and connect them with resources to support them through any difficulties. The resources and support success coaches provide are made available to any employee in the company.
To date, 270 workers have received 1,109 coaching sessions, more than 100 referrals to community partners and $8,100 worth of direct supportive services, such as bus tickets, housing and legal services. The return on employer investment is improved retention, according to Staci Wampler, chief business solutions officer.
“Estimates peg the cost of turnover for an entry-level job at somewhere between 30% to 50% of the employee’s salary, so being able to keep people in their jobs, especially at the 90- and 180-day mark, is huge savings for businesses,” she said.
CLEVELANDCUYAHOGA WORKFORCE DEVELOPMENT BOARD
As of July 1, the ClevelandCuyahoga Workforce Development Board completed its transition from a jointly-staffed government entity into a nonprofit organization. The conversion — which represents two years of sustained work and decades of discussion before that — significantly strengthens the board’s ability to respond to local workforce challenges, according to Michelle Rose, CEO.
The nonprofit status gives the board more flexibility to spend the approximately $20 million it receives in annual federal formula funding, Rose said. It also allows CCWDB to raise philanthropic or private funds, which was too cumbersome and often not possible under the former structure.
The organization will be able to respond more quickly, more effectively and more collaboratively to issues that arise in the local job market, she said. The new entity also will be able help more job seekers and more businesses in the process. CCWDB currently serves 10,000 people a year, a number that is expected in time to double or triple under the nonprofit structure.
“The inspiration was the opportunity to have greater impact in the community by better serving more people, supporting economic development efforts and being a better partner and leader in the workforce ecosystem,” Rose said.
The drive for stadium leverage
Negotiations to a large extent are about gaining leverage — financial, legal and, sometimes, in the court of public opinion.
The city of Cleveland is looking for leverage as it considers options to keep the Browns from leaving downtown to build a $2.4 billion dome stadium in Brook Park, near Cleveland Hopkins International Airport. It believes it might have some in preparing for a lawsuit based on a 1996 section of Ohio law commonly referred to as the "Art Modell Law," after the least-popular Browns owner of all time. (At least so far.)
The law, enacted in the wake of Modell moving the Browns to Baltimore (where the team became the more successful Ravens), in theory provides a legal mechanism to challenge team relocations and protect a city’s investments in infrastructure and other matters related to a team.
It's short, too. Here's the entirety of what it says:
No owner of a professional sports team that uses a tax-supported facility for most of its home games and receives financial assistance from the state or a political subdivision thereof shall cease playing most of its home games at the facility and begin playing most of its home games elsewhere unless the owner either:
(A) Enters into an agreement with the political subdivision permitting the team to play most of its home games elsewhere;
(B) Gives the political subdivision in which the facility is located not less than six months' advance notice of the owner's intention to cease playing most of its home games at the facility and, during the six months after such notice, gives the political subdivision or any individual or group of individuals who reside in the area the opportunity to purchase the team
The law's impact is theoretical because it has never been fully litigated, though it did, ironically, play a role in 2017-18 in helping to provide leverage for negotiations to keep the Columbus Crew, a Major League Soccer team, in Ohio — under the ownership of a group that includes Browns owners Dee and Jimmy Haslam.
We're not lawyers, but there are some ambiguities in the text of the Modell law that, if put to the test in court, might render the measure toothless. You never know, though, and this would be a good chance for the city to see if there are, indeed, any teeth to it.
That's not what we expect, though. Rather than racing to court — which might yield results favorable to the city, but also is expensive and time-consuming, and could put an even bigger strain on relations with the Browns than currently exists — the lawsuit threat could create more space for Cleveland to negotiate with the team on its stadium needs.
The Haslams have expressed a clear
preference for moving to Brook Park, in a spiffy, modern dome that would be able to produce lots of new revenue from non-football events, parking and ancillary development. The economics of such a facility are highly favorable to the team. As a business proposition, it's certainly understandable for them to be drawn west of Cleveland's border.
This is, to some extent, cart before horse territory.
The Haslams haven't said definitively that they're moving; their Oct. 17 statement on the matter indicated they had chosen to "focus stadium efforts on (a) dome in Brook Park." More importantly, they haven't explained how the public portion of the $2.4 billion tab in Brook Park would be covered. They've previously indicated a stadium project would be a 50/50 proposition, with the public — that is, the state of Ohio, Cuyahoga County and a city to be named later — covering half the cost.
That element could change, of course. The team could decide to finance a stadium project with less public money, or none at all. But it's difficult in late October to envision a scenario where public sources provide $1.2 billion for a stadium project. (The Haslams in their most recent statement about the possibility of a Brook Park move said a stadium there “will not use existing taxpayer-funded streams that would divert resources from other more pressing needs.”)
Cuyahoga County Executive Chris
Ronayne, who in August said the county wouldn't provide funds for a Brook Park move, this week underscored questions about the public-financing component by saying, “To announce you’re leaving and hope everybody just comes with you upon that announcement, is a fantasy. We haven’t seen a case for support, financially or otherwise.”
None of that necessarily means that the city of Cleveland's offer of $367 million for renovation of the existing lakefront stadium (plus nearly $100 million for future renovations), or a potential pivot to a new stadium on part of the land where Burke Lakefront Airport now sits, is fully in play. The Burke gambit, in particular, seems like a dead letter. But we don't believe the conversation about a Browns stadium in Cleveland is done. Keep talking.
These are not the best of times for the Browns on the field. The team was 1-6 heading into its Oct. 27 game against the Ravens. An impossibly expensive (and bad) quarterback is out for the season and possibly the rest of his career. Players are mad at fans. Fans already are turning their attention to the NFL Draft. And yet, the team and the franchise have a deep hold on the city. Downtown advocates maintain the lakefront is the best stadium location, for the city and the team. Both sides owe it to a loyal fan base to continue to try to figure out a stadium solution that's in everyone's interest.
Optimistic middle market leaders set their sights on growth
Optimism reigns in the middle market as we wrap up 2024 and look ahead to 2025.
KeyBank’s latest Middle Market Sentiment Survey found the vast majority (78%) of business leaders are as optimistic as they’ve been in years, so much so that they characterized the outlook for their company over the next 12 months as "excellent" or "very good."
Midwest business leaders:
Balancing optimism with economic concerns
Earlier this year, KeyBank surveyed owners and executives of middle market businesses across the United States, defined as those with $10 million to $1 billion in revenue. Over 700 business owners responded, including 120 based in the Midwest. Of those 120, 71% said they have an “excellent” or “very good” outlook for their company. While that number feels positive at first glance, the company outlook in the Midwest is lower than all other U.S. regions by 9%11%.
business owners nationwide, the overall company outlook has seen its largest increase since late 2022. So, how are middle market companies circumventing the obstacles to growth?
Reasons for a positive company outlook
Dialing into the specific factors that contributed to a positive company outlook, 67% of Midwest middle market business owners who feel “very good” or “excellent” about their company outlook credit improved efficiency in business operations, while 59% cited technology improvements.
The overall U.S. economic outlook was even lower with only 40% of Midwest middle market business leaders reporting an “excellent” or “very good” outlook for the U.S. economy over the next 12 months. This number represents the lowest of all regions and is a continued decrease from KeyBank surveys dating back to June of 2022. By comparison, 46%-57% of business leaders in the Northeast, South and West regions reported an “excellent” or “very good” outlook for the U.S. economy during the same time period. One reason for the positive company outlook growing faster than the economic outlook is the perception that businesses have a certain level of controllability within company walls, even amid challenging economic times.
Amid concerns about talent retention, cybersecurity, and inflation, business owners are finding growth opportunities by adopting new technologies aimed at expanding operations, improving efficiency and reducing external risks. Among middle market
While Midwest respondents had the highest percentage of positive outlook related to operational efficiencies, the region was the second-lowest ahead of only the South for positive outlook related to technology improvements.
Operational efficiencies often come with an upfront cost and business owners may question the return on investment (ROI) timeline. The old adage “You have to spend money to make money” comes into play here.
In all regions, middle market expansion plans reflect a deep commitment to not just surviving, but thriving, by exploring new opportunities, investing in their future, and adapting to the changing landscape. Expansion plans include entering new product markets, scaling operations, or implementing new technology and automation.
Of all technologies available to business owners today, AI is one of the most prevalent. In fact, AI adoption tops the list of methods U.S. middle market business leaders have for expanding operations, as 54% of leaders plan to implement AI before the end of 2024. This is a 10% increase since Q4 2023.
Concerns holding Midwest middle market businesses back
Regardless of their outlook on the U.S. economy, businesses across the country indicate increased concerns about being able to offset unexpected expenses and financial
emergencies as potential threats to the overall company outlook. The ability to invest in growth and increase employee compensation are also concerns.
While Midwest middle market leaders who rated their company outlook as “very good” or “excellent” led all regions in credit given to operational efficiency, they ranked last in several other categories, including confidence in retaining talent, pricing power, and cybersecurity.
Not surprisingly, inflation remained a top concern in the middle market at mid-year. More than one-third of survey respondents (38%) reported that overall increases in inflation are negatively impacting business operations.
For nationwide middle market business leaders with a less optimistic outlook, the primary strategy for fighting inflation is passing increased costs onto customers, with 37% reporting this approach.
In contrast, leaders who feel more confident about their company’s future are countering inflation by streamlining processes,
improving efficiencies, adopting automation, and boosting sales and marketing efforts.
Growth opportunities and access to needed capital are available
Overall, U.S. middle market business leaders are seeking improvements through technology investments designed to increase operational efficiencies, reduce cybersecurity risk, and decrease the overall cost of doing business.
Middle market business leaders expecting moderate revenue increases in the next 12 months are much more likely this quarter to view implementing AI as a top method of expansion, along with continued focus on additional process improvements.
And while the majority of Midwest middle market business leaders remain optimistic about their own companies’ futures, it’s clear they’re lagging behind other regions when it comes to a number of potential factors that can help drive growth and uncover new opportunities to strengthen their organizations.
The Hispanic Roundtable strives to empower, educate community
Afew weeks ago, when awarding the Nobel Prize for Economic Sciences, the Nobel Committee commented on “the importance of societal institutions for a country’s prosperity.
The Hispanic Roundtable (HRT) takes seriously the task of such institution-building and, in September, celebrated its 40th anniversary at its Convención 2024.
HRT is a totally volunteer civic organization dedicated to serving and empowering Cleveland's Hispanic community. As we say on our website, the organization’s purpose is “to develop a vibrant, independent, and self-reliant
Hispanic community, one which is making a significant contribution not only to the advancement of the Hispanic community but also to the betterment of the entire community.”
We have historically engaged in a community process in which we convene the entire Hispanic community at a convention and obtain input to set our community agenda.
The fundamental idea behind the community convention is based on the original Greek and Roman forums, where citizens participated directly in identifying, debating, and imple-
menting the issues of the day. We do this by passing community resolutions.
Community resolutions have led to the creation of community institutions, among others:
w Hispanic Scholarship Fund (now known as Esperanza).
w The Hispanic Village Project (now known as Centro Villa25).
w Hispanic Senior Center (now managed by Catholic Charities).
w Hispanic Domestic Violence Program.
w Hispanic Contractors Association (which was instrumental in developing the Construction Workers Training Program through the Spanish American Committee).
Other significant activities in which we
have been involved include securing the bilingual ballot in Cuyahoga County, redistricting in the city of Cleveland leading to the election of a Hispanic councilperson (and calling for changes that could lead to a second), signatories to the original Community Benefits Agreement in Cleveland and providing vaccine access at various pop-up clinics, which led to 3,000 Hispanics being vaccinated during the most severe times of COVID-19.
I cite these examples evidencing our institution building, which will lead to prosperity for the entire community.
For more information about the Hispanic Roundtable and how you can get involved, please visit our website.
José C. Feliciano is chairman of the Hispanic Roundtable.
Kelly Lamirand is the Cleveland market president and commercial sales leader with KeyBank.
Tim Burke is executive vice president and commercial sales executive for KeyBank’s Central Region.
NOTABLE LEADERS IN HEALTH CARE
While COVID-19 is still part of our world, the health care sector has evolved to accept the challenges and lessons learned as the worst of the pandemic is in the rearview. As one of the Cleveland area’s biggest — and most important — industries, those recognized here have helped push forward those innovations and new approaches, whether it’s in direct contact with patients or behind the scenes, from biotech to boardrooms. These honorees continue to innovate and educate, not just keeping Cleveland at the center of the health care universe but at the forefront of keeping the public healthy.
METHODOLOGY: The individuals featured did not pay to be included. This list, which is not comprehensive, includes only individuals for whom nominations were submitted and accepted after a review by editors. To qualify for the list, nominees must: be employed at a health care organization (hospital, provider or insurance) and have at least five years of experience in their field (three levels or less from the company CEO); be involved in expanding the business, service and/or technology side of health care (beyond being solely a clinician); promote diversity and inclusion at his/her organization; and demonstrate leadership in professional organizations and civic/community service initiatives. They must live and work in the Northeast Ohio area. Their profiles were written from the nomination materials submitted.
Megan Ambers
Chief people officer
Ivy Rehab Network
Scope of work: Megan Ambers leads labor strategies, human resources functions and human capital management at Ivy Rehab Network. Organizational turnover has decreased 30% year over year under her leadership.
Biggest career win: During the COVID-19 pandemic, Ambers reduced turnover at home health and hospice provider Amedisys by 50%.
Community or industry contributions: Ambers is a member of the Society of Human Resources Management and the American Physical Therapy Association. In addition, she serves as a student mentor at Brown University.
Larry Benders
President and CEO
Cleveland Sight Center
Scope of work: Larry Benders has held a leadership position at Cleveland Sight Center since 2015, growing the organization’s operating budget from $8 million to $12.5 million and doubling its endowment from $60 million to $120 million.
Biggest career win: In 2019, Benders successfully advocated for Medicaid coverage of white canes in Ohio, a unique achievement nationwide.
Community or industry contributions: Benders is a current board member of University Circle Inc. and Westfield Bank.
Professor
Case Western Reserve University Director
MetroHealth System
Scope of work: Through her various roles, Shari Bolen focuses on improving cardiovascular health and mitigating health disparities among disadvantaged populations. She also is the director of the Population Health Research Institute at MetroHealth.
Biggest career win: Bolen recently reported to the U.S. Congress on gaps in federal programs for adults with diabetes. Community or industry contributions: Bolen reviewed federal programs for metabolic and autoimmune diseases on the HHS National Clinical Care Commission while it was active.
For the lives you touch. For the difference you make.
Jorge Guzman, MD
Rebecca Starck, MD
Shari Bolen
FROM RESEARCH TO REAL LIFE
At the MetroHealth Rehabilitation Institute, we have one simple mission: to help patients who have experienced signi cant illnesses or injuries regain as much physical and cognitive function as possible.
In the MetroHealth Adaptive Life Technologies (ALT) Lab, we’re nding new ways to incorporate technology into rehabilitative care for those living with life-altering injuries or illnesses, such as spinal cord injury, stroke, muscular dystrophy, ALS, Parkinson’s disease and more.
By leveraging existing technology like computers, smartphones, and wearable technology, our research helps people all over the country in their real life through home automation, environmental control, mobility —and even opening and closing doors.
And speaking of opening doors, the ALT Lab is led by Blake Perkins, PT, DPT, ATP, whose own rehabilitation from a spinal cord injury is the type of lived experience we value every day to truly understand what patients need. The MetroHealth ALT Lab is the only U.S. lab of its kind led by a person with a spinal cord injury.
It’s not just research to real life. It’s real life to research, too. Learn more at rehabilitation.metrohealth.org or call 216-778-4414.
Healthcare in Ohio by the numbers
52,000 STEM graduates annually
4,200 bioscience companies
84,000 life sciences employees
Terrance Byrne Chief operations officer
Neighborhood Family Practice
Scope of work: Terrance Byrne oversees operations for seven health clinics providing medical, dental, pharmacy and behavioral health services to the community.
Biggest career win: Byrne was instrumental in opening low-cost pharmacies for NFP patients navigating poverty.
Community or industry contributions: Byrne, a fellow with the American College of Healthcare Executives, also is a member of the National Association of Community Health Centers.
John Chae
Executive vice president, chief academic officer
MetroHealth System
Scope of work: A key official in the area of stroke rehabilitation, John Chae is part of the MetroHealth Center for Rehabilitation Research. MCRR is a global leader in functional electrical stimulation technologies for people with central nervous system paralysis. He is also the senior associate dean for medical affairs at the School of Medicine at Case Western Reserve University.
Biggest career win: Chae’s research involves mitigating chronic pain as well as improving the mobility functions of stroke survivors.
Community or industry contributions: Chae is a member of the National Academy of Medicine and the American Institute for Medical and Biological Engineering.
Since joining The Centers as president and CEO in 2020, Eric Morse has significantly grown the agency by expanding its existing services and establishing new service lines to meet the evolving needs of the community — nearly doubling the organization’s annual revenue in the process. Through integrated health and wellness, early learning, workforce development and youth residential services, the nonprofit now serves 20,000 people annually across Northeast Ohio.
Committed to working collaboratively with other partners to break down systemic barriers and build more equitable communities, Morse also serves on multiple boards including the Three Arches Foundation, University Circle Inc. and the Ohio Association of Community Health Centers.
Laurel Domanski Diaz
Justice and health equity officer
Cuyahoga County
Scope of work: Laurel Domanski Diaz has 20 years of experience in safety net health care operations, including serving as administrator for correctional medicine at MetroHealth System.
Biggest career win: Since 2019, Domanski Diaz has helped achieve compliance with key correctional medicine bodies including the National Commission on Correctional Health Care.
Community or industry contributions: Domanski Diaz acted as chief operating officer for Neighborhood Family Practice, a multi-site federally qualified health center.
Lisa
Giganti CEO
Lumina Imaging
Scope of work: Lisa Giganti spearheads Lumina Imaging’s innovative health care imaging services to clients throughout Northeast Ohio.
Biggest career win: Giganti provides patients with affordable, high-quality imaging services and ensures seamless transfer of results to all involved physicians.
Community or industry contributions: Giganti is a board member of the Northern Ohio Italian American Foundation.
Sponsored Content
NOTABLE SPOTLIGHT with
Collaborating to build more equitable communities
determinants of health and supporting holistic community development.
Eric Morse
How would you describe your approach to leadership?
My leadership approach is rooted in servant leadership, which means putting those we serve at the center of every decision. It’s essential to recognize and appreciate what is working well, but also to critically assess where the status quo falls short in meeting the needs of our communities. I strive to bring together diverse voices and perspectives to create innovative solutions that address these gaps. This requires cultivating a culture that emphasizes belonging, purpose, gratitude, service and bravery — all tied to a strong sense of accountability that aligns with The Centers’ mission and purpose.
What are the biggest misconceptions you battle as president and CEO of The Centers?
One misconception is that we are a singular, siloed organization, when in fact, we operate as a cohesive, multifaceted entity serving a broad range of needs across integrated health and wellness, early learning, workforce development and youth residential services. Another common misconception is that our work focuses only on health services, whereas we also play a vital role in addressing social
What are the keys to leading significant organizational change?
The first key is transparency. Change can be daunting for any organization, so being open about our goals, the process and the challenges we face is critical to building trust and ensuring alignment. The second key is fostering a shared sense of purpose. When people understand how their individual roles contribute to the greater mission, they feel a personal connection to the change and are more likely to embrace it.
What partnerships have been crucial to your growth?
Our collaboration with Cuyahoga County has helped address the urgent needs of displaced youth in our community, particularly through initiatives like the Child Wellness HOPE Campus. Additionally, our partnerships with local hospitals, educational institutions and community organizations create a continuum of care that extends far beyond health services — addressing needs in education, employment and family support.
What drives your community involvement in multiple boards beyond The Centers?
My involvement is driven by a belief that a community thrives when all sectors work together. Serving on various boards allows me to connect with leaders across different areas of service — aligning efforts to create a stronger, more resilient Cleveland. Each cause that I engage with aligns with our mission at The Centers — whether it’s focused on health, education or economic opportunity — because I believe in tackling issues from multiple angles. This interconnected approach makes a more comprehensive impact, ultimately enriching our community.
Why is the transition to accountable care so critical?
This transition is vital because it shifts the focus from volume to value, ensuring that every aspect of care directly benefits our clients’ wellbeing. This model holds providers accountable for outcomes rather than just services delivered. At The Centers, we’re committed to being leaders in this transition, setting the standard for compassionate, results-driven care that supports holistic health.
Interviewed by Brooke Bilyj for Crain’s Content Studio
Jorge Guzman
President of the Northeast Ohio market
Cleveland Clinic
Scope of work: Jorge Guzman oversees Cleveland Clinic’s main campus as well as its pharmacy, regional hospitals, family health centers and ambulatory sites.
Biggest career win: Guzman has served in numerous leadership positions at the clinic, along with hospitals throughout the U.S. Community or industry contributions: Guzman has co-authored more than 50 scienti c papers in peerreviewed medical journals and book chapters.
Yvonka Hall Executive director
Northeast Ohio Black Health
Coalition
Scope of work: Yvonka Hall leads the coalition’s efforts in addressing racial, economic, environmental and social justice inequities among Black populations.
Biggest career win: In 2023, WEWS-TV (Channel 5) named Hall one of 50 “Everyday Heroes” making a difference in Cuyahoga County.
Community or industry contributions: A member of numerous local and national organizations, Hall continues to address equity shortfalls in the Black community.
Andrew Hertz President
Zest Pediatric Network
Scope of work: Andrew Hertz leads organizational operations for the country’s rst direct pediatric care network.
Biggest career win: Hertz implemented the Zest vision in less than two years, providing an innovative care model for busy parents and their children.
Community or industry contributions: Hertz serves on a variety of boards, including Starting Point, a regional childcare resource and referral agency.
Paul Hinchey
Chief operating of cer
University Hospitals
Scope of work: Paul Hinchey is responsible for all University Hospitals’ clinical operations, including a community hospital network composed of 21 healthcare facilities.
Biggest career win: Hinchey’s Systems of Care operating model empowers the health system to deliver patientcentered, ef cient and coordinated care.
Community or industry contributions: Outside the of ce, Hinchey teaches as part of the National Association of EMS Physicians’ board certi cation program.
Suber Huang CEO
Future Vision Foundation/ Retina Center of Ohio
Scope of work: Suber Huang is committed to outstanding clinical care, education and research through his work with the Future Vision Foundation and the Retina Center of Ohio.
Biggest career win: Huang founded the American Society of Retina Specialists Retina Image Bank, an open access platform for retina images. Community or industry contributions: Huang’s community involvement includes positions with the Future Vision Foundation and the Foundation Fighting Blindness.
Heartfelt CONGRATULATIONS to Dr. Diana Ponsky and all the distinguished Notable Leaders recognized for their outstanding achievements.
CRAIN’S CLEVELAND BUSINESS
DIANA PONSKY, MD, FACS
James Kravec
Chief clinical of cer
Mercy Health
Scope of work: James Kravec is the clinical leader for seven Mercy Health facilities in Northeast Ohio.
Biggest career win: Kravec was the lead physician for Mahoning Valley’s COVID-19 response and held a similar role during the East Palestine train derailment.
Community or industry contributions: Kravec volunteers as a physician liaison with the local Diocese of the Catholic Church.
Dàna Langford
Co-founder
Village of Healing Center
Scope of work: Dàna Langford is co-founder of the Village of Healing, a community development organization focused on empowering “the village” to eliminate social determinants of health.
Biggest career win: Langford brings clinical experience and passion in removing health care disparities among her clientele.
Community or industry contributions: Through numerous committee positions and speaking engagements, Langford acts as mentor to both professionals and students.
Daniel LettenbergerKlein
CEO
Stella Maris
Scope of work: Daniel Lettenberger-Klein is a strategic leader in Stella Maris’ ght against the opioid epidemic.
Biggest career win: Over the past ve years, LettenbergerKlein and the regional recovery community have signi cantly increased treatment service resources.
Community or industry contributions: LettenbergerKlein works with the Center for Health Affairs, a leading advocate for Northeast Ohio hospitals.
Sonya Moore
Program director and assistant professor in the Frances Payne Bolton School of Nursing
Case Western Reserve University
Scope of work: Sonya Moore is director of the nurse anesthesia program at the Frances Payne Bolton School of Nursing, as well as director of the school’s Leadership Excel and Achievement Program (LEAP).
Biggest career win: Moore’s LEAP program encourages underrepresented minority students to join the eld of nurse anesthesia.
Community or industry contributions: Moore supports the Frances Payne Bolton Leaders Scholarship Fund, which aims to increase diversity in nursing leadership.
Eric Morse
President and CEO
The Centers
Scope of work: Under Eric Morse’s leadership, The Centers offers the community early learning, workforce development, health and wellness and youth residential services.
Biggest career win: Since joining The Centers in 2020, Morse has doubled the agency’s revenue via service expansion and addition of new service lines.
Community or industry contributions: Morse acts on boards such as the Three Arches Foundation, University Circle Inc. and the Ohio Association of Community Health Centers.
Adding Lumina Imaging and Diagnostics to your health plan ensures quality healthcare at a lower cost—for both employees and employers. Your employee’s health matters—and so does your bottom line. You shouldn’t have to choose between the two.
Diana Ponsky
Owner
Ponsky Facial Plastic Surgery
Scope of work: Beachwoodbased Diana Ponsky is a double board-certi ed facial plastic surgeon and owner of Ponsky Facial Plastic Surgery.
Biggest career win: Ponsky and her team have created one of the most successful plastic surgery practices in the Cleveland area.
Community or industry contributions: A respected surgeon, Ponsky also provides pro bono services to impoverished women and domestic violence survivors.
Nathan Rhea Director of specialized behavioral health services
The Centers Scope of work: At The Centers, Nathan Rhea helps create impactful programming for individuals with behavioral health problems.
Biggest career win: Rhea founded The Centers’ STARS/ FIRST program, an early psychosis intervention for young people and their families.
Community or industry contributions: Rhea, a volunteer with the Boy Scouts of America, also promotes mental health advocacy in the community through various speaking engagements.
Rebecca Starck
Vice president and chief medical of cer
Cleveland Clinic Avon Hospital
Scope of work: Rebecca Starck is a clinical leader at Avon Hospital, where she ensures high standards of patient care and safety.
Biggest career win: Starck created an onboarding program at Avon Hospital, welcoming caregivers into the organization while improving service lines to boost patient safety.
Community or industry contributions: Starck created the Avon Hospital community advisory council and volunteers on the Lorain County Community College Foundation board.
Patty Starr
President and CEO
Health Action Council
Scope of work: In her leadership role at HAC, Patty Starr is responsible for driving the strategic direction of the Cleveland health care nonpro t.
Biggest career win: Starr helped relaunch Find the Right Care, a website that provides information on childhood preventable diseases.
Community or industry contributions: Starr is an advisory board member of the Ohio University Heritage College of Osteopathic Medicine.
Justin Yax
Director of the Center for Emergency Medicine’s Division of Population Health University Hospitals
Scope of work: Justin Yax, a certi ed physician in internal medicine and infectious diseases, has been working in the eld of global health since 1999.
Biggest career win: Yax founded the division of population health within the University Hospitals Cleveland Medical Center.
Community or industry contributions: Yax collaborates with the Cuyahoga County Board of Health to provide HIV and syphilis screenings for high-risk patients.
Case Western Reserve University congratulates
John Chae
Professor, Department of Biomedical Engineering, Neural Engineering Center, Case School of Engineering
Sonya Moore
Director, Nurse Anesthesia Program, Frances Payne Bolton School of Nursing
Shari Bolen
Associate Professor, Department of Population and Quantitative Health Sciences, School of Medicine
For being recognized as Crain’s Cleveland Business Leaders in Health Care
If it sounds like flipping houses, to a degree, it is. However, there are big differences, beyond the general $1 million price range.
Even on the smallish end of the office market for structures, ranging in size from 67,000 square feet in Westlake to 34,000 square feet in Mayfield Heights, there are challenges. Cash calls are needed for updates, attracting tenants and changing suites to suit them, and brokerage commissions are considerable. And the process takes more time so, at least for now, the two have no plans to sell them.
“The current owners can’t afford these buildings in many cases,” Thakkar said as he and Shehadeh provided a tour of Parkland Terrace to discuss their plans for the halfempty property. “We are buying at a price that we can make the improvements and still offer rents at attractive rates between $15 and $20 a square foot."
They generally hope to pay around $40 a square foot, he said.
Many deals are foreclosures, as was the case in Westlake. In others, current owners want to find the door out of the pandemic while work-from-home has roiled office market.
Shehadeh’s expertise is finding the deals. He's astounded by the properties he is able to find at increasingly popular commercial real estate auctions and online commercial realty sales and leasing sites, from CoStar to CREXI.
“We just found a Rite Aid store we want to buy in the west suburbs,” Shehadeh said. “The drivethrough will help attract a restaurant. We may have to put three other stores or offices in it, but it is a great location.”
Shehadeh was among three potential buyers at a June 6 auction by Colliers Cleveland for Westlake Centre when the property did not sell. He stayed quiet during that session. Instead, he negotiated a post-auction deal so sweet that it took a special request from the lender, Park National Bank of Cincinnati, that attorneys in the foreclosure case that brought it to market had to get Cuyahoga County Common Pleas Court Judge John O’Donnell to authorize the sale. (The authorization was needed because the price was so far below the $2.6 million the court-appraised value and the original loan of $3 million.)
Clearly, the lender was hoping to salvage what capital it could in the deal.
“Before people were paying $30 a square foot to rent some of these buildings,” Thakkar said. “We’re able to start leasing these properties at about half that.”
The key thing is the classic Cleveland commercial realty game of buying properties below the cost to build them. And buy with cash from the principals or a small group of friends so they do not have to sweat making mortgage payments.
“If you have a lender, you are already behind the eight-ball,” Thakkar said. “Our investors put in about 50% and we put in about 50%. I’ve never thought it fair to
raise money for a real estate deal and not have any money in it.”
The other aspect of their system is that they have their own building staff of about 15 that Thakkar said they are paying, whether or not they have a project as well a network of contractors that allow them to make improvements for less than it would cost by hiring construction services through conventional means.
“We feel that gives us an edge, and you need every one you can get," Thakkar said.
At Parkland, they plan to modernize the mahogany-paneled lobby and change lighting so they can brighten up the 1996-vintage lobby they believe is too dark.
At Westlake Centre, which they bought in August, the partners already have painted the building grey to give the 1976-era structure, which was redone in the 1990s, a more contemporary look. They also are resurfacing the parking lot, and the elevators will need to
be rebuilt.
Thakkar and Shehadeh found Parkland Terrace at an online auction, but this time the prior owner was looking for an exit.
David Leb, a Cushman & Wakefield Cresco vice president who managed the auction for Parkland Terrace’s sellers, Parkland Professional LLC, said the sellers “did not have aspirations to sell at a loss. However, they decided to meet the market where it is, sell the property and go on to their next investment.”
Leb said there were four serious bidders at the nationally promoted auction on Ten-X.
“We bid at the very end,” Shehadeh said.
The duo also acquired through another Ten-X Auction, this time overseen by CBRE’s Cleveland office, the three-story Midway Plaza Office Building at 347 Midway Blvd. in Elyria. That deal closed in August for $534,400. The 33,000square-foot building is 70% vacant, according to CoStar. Thakkar sees it
commercial real estate for more than 20 years.
Shehadeh’s venture is called “Snow & Chevy Property LLC” because that was the name, he used to buy his first property and business, a Brook Park service station. He later sold the business but uses the name for his other ventures. For example, Snow & Chevy was the name the duo used for the Westlake Centre building.
In Thakkar’s case, he is diversifying into real estate ownership from his core hotel business through HSM Hospitality Management Co. where he has managed the Comfort Inn on Euclid Avenue near Cleveland State University for 20 years. Thakkar said he learned about hotels and real estate from his father, Govind Thakkar, who led the investment in the downtown Comfort Inn and pushed a group of investors to buy the property out of foreclosure. An investor group led by HSM earlier this year acquired the Extended Stay America hotel at 3820 Orange Place for $3.76 million. Shehadeh also is an investor in some of HSM's current or future deals.
“I worked in hotels since I was in high school,” Thakkar said of working in his family business. He views that start as enabling, for his part, the ventures he and Shehadeh now undertake.
Another partner in the Comfort Inn that Thakkar considers a mentor is real estate investor George T. Simon, a former restaurateur who got involved in real estate when the Rockside Road office market was in its growth mode in the 1980s, and later became a real estate attorney. Thakkar said he learned about real estate investing in the doing by participating in additional deals with Simon over the years.
For his part, Simon agreed that Thakkar, who is now doing deals on his own with Shehadeh is “one of many alumni of the George Simon School of Real Estate. But now I am focused on training another class of investors, my children, and other members of the family.”
However, the current partnership is shaped by their strength.
as another case of a turnaround.
“The proximity to Midway Mall, with that project coming on, already made our building more valuable,” Thakkar said.
In both Westlake and Mayfield Heights, their crews trimmed overgrown bushes, whacked out weeds, cut the grass and took steps to modernize the landscaping.
“These buildings need curb appeal,” Thakkar said. “No one wants to rent an office where there are weeds in the parking lot.”
While the half-empty Parkland Terrace building needs cosmetic work, the Westlake Centre office building needs much more attention to turn it around, Shehadeh said, so he considers it a three-year project.
In all three cases, Thakkar characterized the properties as “keepers.”
“We’re in a growth mode,” he said. “We plan to keep them for now. That may change later.”
Both men have been investing in
“We have our own system,” Thakkar said. After Shehadeh identifies a prospective purchase, Thakkar goes to check it out and they decide whether to proceed based on their investment criteria and if it meets their standards.
Between them, the two have what they described as a multimillion-dollar realty portfolio. Their goal is to add another $200 million to the portfolio by 2027. However, they have not decided on an umbrella name to give their burgeoning real estate business in hotels, shopping centers, gas stations and have a special focus on offices at this time.
“It’s like a stock. Right now office buildings are low,” Thakkar said. The current downturn is a cycle shaped by the pandemic and lending circumstances.
Thakkar and Shehadeh believe the core office use will be a survivor.
"People are scared the office market will not come back,” Thakkar said. “I feel all the businesses will be going back to the office, now or in the future. The vacation’s over.”
An investment group led by Sandip Thakkar (left) and Abe Shehadeh purchased Parkland Terrace in Mayfield Heights. | StAN BULLARD
The new owners of Parkland Terrace at 6120 Parkland Drive in Mayfield Heights paid about half what the property’s sellers paid for it. | COStAR
The same investment group acquired the 33,000-square-foot Midway Plaze office building in Elyria in August. | COStAR
Workers are retiring later: Here’s the best way to support them
Employers play a critical role in helping late retirees navigate the maze of Medicare to ensure they have the right coverage for their stage of life
You probably have some employees who are choosing to delay their retirement. A recent Pew Research Center report shows that you’re not alone. In fact, one-in-five people aged 65 and older — the age they become eligible for Medicare — were employed in 2023, nearly double the number from 35 years ago.
Your employees might be postponing retirement for any number of reasons. Maybe they’re waiting for their Social Security benefits to become available at age 67. Or perhaps they’re aiming to have more money saved before they stop working.
Whatever the case, this growing segment presents opportunities and challenges when it comes to helping your employees navigate the Medicare landscape.
“Understanding Medicare can be difficult,” said Veronica Hawkins, Vice President of Individual and Retiree Health Solutions at Medical Mutual. “There’s a lot to sort through: plan options, drug coverage, enrollment periods and much more.”
Arming employees with information
When your older employees are better informed about their health insurance options, they can make more effective decisions regarding necessary coverage for their future well-being. And you play a crucial role in supporting them through this process by knowing how Medicare affects your staff and, ultimately, your business.
For starters, Medicare enrollment may determine if you are responsible for paying insurance claims.
When an eligible employee enrolls in Medicare, it generally becomes their primary coverage. If an employee defers enrollment, any health plan your business provides will likely continue to be their primary coverage during the remainder of their employment. Depending on your company size, your employees may be required to enroll.
• Employer with fewer than 20 employees: Those eligible for Medicare must enroll in Part A and Part B.
• Employer with 20 or more employees: Those turning 65 have the option to defer enrollment until they retire. Be sure to know when employees need to enroll in Medicare and provide information early, well before they turn 65. Those approaching Medicare age have a seven-month window to enroll.
o Three months before the month of their 65th birthday
o The month they turn 65
o Three months after their 65th birthday
Hawkins
Vice President of Individual and Retiree Health Solutions and Amanda McFarland, Manager for Individual Sales at Medical Mutual
By educating your employees on the enrollment timeline, you can help mitigate confusion and errors.
“We recommend getting ahead of the enrollment period so employees don’t have a lapse in coverage,” said Amanda McFarland, Manager for Individual Sales at Medical Mutual.
If they are going to join a plan, ensuring employees are properly enrolled in Medicare also helps them avoid the cost of late enrollment penalties, some of which can be lifelong surcharges.
Healthcare needs change as you age, so it’s important for your older employees to look for a cost-effective plan that offers the benefits they need.
They should consider the services and benefits offered between Original Medicare, Medicare Supplement or Medicare Advantage (MA)
plans. And coverage for specific healthcare needs, like chronic conditions, can be better addressed by choosing the right plan.
For example, Medical Mutual’s MedMutual AdvantageTM plans provide access to a Chronic Condition Management Program for one-on-one coaching and support from a trained healthcare professional.
Finally, make sure resources are available so employees can consult with experts on any Medicare-related questions.
“There are so many options out there, so have them reach out to somebody who specializes in Medicare and can help them navigate through those choices,” McFarland said.
Healthcare support promotes a positive workplace
With all of this information, it’s clear Medicare can be an involved and nuanced process for employees. When you show your support for their healthcare needs, you end up fostering a positive and productive work environment. This demonstrates that your business values their well-being throughout their late-career stage, which can cultivate a sense of loyalty that retains valued staff as they continue working.
Businesses known to prioritize their employees’ post-retirement care also build a strong reputation in the job market, making them attractive to future talent when experienced employees eventually exit the workforce.
You may want to consider an Employer Group Waiver Plan (EGWP), which is a health plan
that provides Medicare Advantage coverage to retired employees of your company, union or government agency. EGWPs are also known as employer retiree Medicare Advantage health plans.
Taking these steps to work with and show concern for older employees ultimately creates an easy transition to retirement and ensures they have consistent, affordable healthcare coverage.
The value of a hometown health insurer
When navigating the ever-changing world of employer health and wellness benefits, it helps to have a partner close by with an intimate knowledge of your company’s unique needs.
Medical Mutual is the oldest and one of the largest insurance companies based in Ohio, and Hawkins said its customers appreciate easy billing, seamless enrollment updates and comprehensive reporting on benefit utilization as part of that relationship.
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Veronica
(left),
Rehabilitation technology that works
The MetroHealth Adaptive Life Technologies Lab develops assistive tech for life-work integration
In an instant, Blake Perkins’ life changed. One moment, he was a carefree 20-year-old riding his motorcycle. And then: an accident and a spinal cord injury that left him paralyzed from the waist down.
But Perkins was determined to prevent his life from changing, except in one way: his wheels.
“I wanted to get back to being a 20-year-old as soon as possible,” he says. “My dad had spent an exorbitant amount of money renovating our basement. He wanted a functional place where I could live as long as I wanted. As grateful as I was, I didn’t want to be there. I wanted to live life like any other 20-year-old.”
Perkins’ disability qualified him for subsidized housing and supportive services. He got a part-time job and began rebuilding his life. He finished college and started physical therapy school.
“I wanted to take on responsibility for anything that would allow me to integrate back into life,” he shares.
Little did he know that rebuilding lives would become his life’s work as he added another change: PT, DPT, ATP after his name — indicating advanced training with a doctorate in physical therapy and as a certified assistive technology professional.
“People living with spinal cord injury still can be contributing members of the community and workforce,” Perkins shares.
From patient to producer Perkins, a clinical physical therapist and research investigator, heads up the Adaptive Life Technologies (ALT) Lab at the MetroHealth Rehabilitation Institute — the only U.S. lab of its kind led by someone living with spinal cord injury (SCI). The ALT Lab incorporates technology into rehabilitative care for those living with life-altering injuries or illnesses, such as SCI, stroke, muscular dystrophy, ALS, Parkinson’s disease and more.
The technologies enable home automation, environmental control, computer access, mobility and other real-life applications. Perkins and his team leverage existing technologies — computers, smartphones and smart-wear — to make devices more affordable. Recent ALT Lab technologies include TempMe to regulate body temperature; Snap and Go to help hold a baby carrier; and Freedom Close to open and close hinged doors.
“Our devices not only allow people living with spinal cord injury or other disabilities to interact more easily within their home but also reduce their reliance on caregivers,” Perkins says. “With greater autonomy, someone can pay for fewer hours of home care, lessen dependence on state-funded programs, reduce the burden on family and, ultimately, become more self-sufficient.”
Now in its second year, the ALT Lab — a rehab technologies provider credentialed through Opportunities for Ohioans with Disabilities/ Bureau of Vocational Rehabilitation (OOD/BVR) — has connected nearly 150 people with assistive technologies to improve function and,
in some cases, return to work.
“The work being done at the ALT Lab is life-transforming and helps individuals regain parts of their lives or adjust to their situation with greater ease,” says Richard Wilson, M.D., chair of the Department of Physical Medicine and Rehabilitation at MetroHealth.
Lived experience, real-life resource
In addition to helping people like him, Perkins wants to be an asset to local employers.
“Employers are not always sure how to work with someone who has an injury or disability, and the ALT Lab can be a resource,” Perkins says. “We can review access points, design desk set-up and identify efficiencies so employers can benefit from people with unique talents and knowledge despite their injury.”
Jacob Schueller is helping in this endeavor. He received care on the sixth floor of the MetroHealth Rehabilitation Institute — the specialized spinal cord injury unit that is one of only 18 Spinal Cord Injury Model Systems in the U.S. Schueller continued his care with MetroHealth once discharged and met Perkins while he was at the wheelchair clinic, where Perkins helps people get a wheelchair that best meets their needs.
“I saw Blake, who is in a wheelchair due to a spinal cord injury, doing his job well,” Schueller recalls. “And I met Steve Polakowski, who is a
quadriplegic like me and who has his own IT company, and I thought, ‘How can I make a difference and do something meaningful, too?’”
At the ALT Lab, Schueller was evaluated for equipment that would allow him to contribute and work. (Funding for his devices is in process with OOD/BVR.) He also began discussing with Perkins how he could give back.
“This is the type of lived experience you only have if you end up in this situation. I want to use it to help others, whether their life has only recently dramatically changed or they’ve been living with spinal cord injury for a long time,” Schueller says. “Adaptive technologies can be what gets someone from feeling defeated in life to getting over the threshold and realizing they can still have a meaningful life.”
Schueller set up his own company, LernSCI, and began working on a contract basis for MetroHealth. He works with patients, case workers and the Cleveland State University SCI Volunteer Corps to coordinate the procurement and installation of the technologies.
Additionally, Schueller is one of seven grant writers for a large grant being pursued by MetroHealth and research partner Case Western Reserve University.
“Research grants today require lived experience,” he explains. “This is an opportunity for me to
Spinal Cord Injury: By the numbers
SCI involves damage to any part of the spinal cord.
• 305,000 individuals in the U.S. live with SCI
• 8,000 new SCI cases in the U.S. annually
• 43 average age at injury
• 79% of new SCI cases are male
• 18% of persons with SCI are employed at year 1 post-injury
• $92,578 per year in expenses (in 2023 dollars)
Source: National Spinal Cord Injury Statistical Center
use my experience as a guided force for research.”
Schueller — who completed a fellowship through Praxis Spinal Cord Institute in Canada — traveled to Washington, D.C., in October to sit on a panel for the U.S. Department of Defense’s Congressionally Directed Medical Research Programs, which is deciding how to allocate federal dollars to research institutions.
A lot has changed since Schueller visited the wheelchair clinic last year.
“My work with the ALT Lab is the most meaningful thing I have been involved in post-injury,” he shares. “It helped solidify my purpose in life. I find a lot of satisfaction helping ease the turbulence of those who have similarly found themselves in what seems like a paddleless canoe at first.”
For more information about the MetroHealth Rehabilitation Institute and the ALT Lab, visit rehabilitation.metrohealth.org. To read more about Dr. Wilson’s new role as chair of the Department of Physical Medicine and Rehabilitation at MetroHealth, please visit CrainsCleveland.com/content-studio/richardwilson-appointed-top-role-metrohealth-institute.
Above: MetroHealth ALT Lab’s Blake Perkins works with Steve Polakowski, patient and IT consultant. Polakowski is using a QuadStick, a sip and puff/head-controlled device for computer access — a device that Polakowski leverages to operate his computer and run his IT business. Below: Perkins works with Jacob Schueller, patient and ALT Lab consultant. Schueller is using a Hominid X adaptive grasping device to pick up a glass for independent drinking. Photos courtesy of Cleveland FES Center
“There’s no possible way you’re getting that money back,” he added. Despite more than 130 studies of the economic impact of sports teams and stadiums all reaching the same conclusion — stadiums are a bad public investment — they keep getting built with significant amounts of taxpayer funds.
Although the Haslam Sports Group has not divulged funding details for its proposed Brook Park dome, HSG has been seeking a public-private partnership to split the $2.4 billion price tag. The site will likely need another $500 million or more in surrounding infrastructure upgrades. HSG plans to cover the cost of real estate development around the dome, which could rise to $1.2 billion or more.
Two NFL teams are currently building new stadiums. The Buffalo Bills' $1.4 billion outdoor stadium is set to open in 2026 and includes $850 million in public funding. That number is more like $1.2 billion since the state and the county are splitting the maintenance and repair costs with the Bills over the 30-year length of the lease.
The Tennessee Titans are building a $2.2 billion dome with a record $1.26 billion in public funds, although the Chicago Bears are trying to eclipse that mark. The Bears in April unveiled plans to build a $4.75 billion domed lakefront stadium that would cost taxpayers approximately $2.4 billion.
The Brook Park dome’s $2.4 billion price is less than half of what it took to build SoFi Stadium in Los Angeles, which cost $5.89 billion in 2020 dollars. But it's more than Allegiant Stadium in Las Vegas (which was $1.9 billion in 2020 dollars). Those are the two most recently completed dome projects in the NFL.
Mark Rosentraub, a professor of sports management and director of the Center for Sports Venues & Real Estate Development at the
University of Michigan, has deep ties to Cleveland, having served as a professor and dean at Cleveland State University's Maxine Goodman Levin College of Urban Affairs. He also helped rewrite the leases for the Cavaliers and Guardians when he sat on the Gateway Economic Redevelopment Corp.
opment. This is not a fast-growth region like New York or Chicago. Instead, what you’re doing is diluting a market that is growing slowly at best.
“You can’t keep spreading the margarine and tell everyone that this is going to enhance the dinner table. It’s not.”
“A dome stadium would be a worthwhile investment, but not in Brook Park. It’s not in the region’s best interest and it’s not in the state’s best interest.”
Mark Rosentraub, a professor of sports management and director of the Center for Sports Venues & Real Estate Development at the University of Michigan
While he has come out in favor of replacing the current stadium with a dome, he believes the Brook Park plan is a mistake.
“That site does nothing to change the community and the environment in Northeast Ohio,” he told Crain’s Cleveland earlier this month. “One thing that has to be understood in Columbus and understood in Cuyahoga County is that the only impact that’s worth public investment is one that enhances regional economic devel-
come of no more than $70,000.
Those eligibility thresholds come from a County Auditor Association proposal, Cromes said.
Most of the public investment in Cuyahoga County in recent years has happened downtown, highlighted by Mayor Justin Bibb’s shore-to-core-to-shore tax increment financing (TIF) district.
The Browns had an opportunity to bolster the city’s momentum by building a new dome, Rosentraub said, but it needed to happen downtown.
“A dome stadium would be a worthwhile investment, but not in Brook Park,” he said. “It’s not in
the region’s best interest and it’s not in the state’s best interest.”
Of course, the city’s plan all along was to renovate the current stadium, whose lease expires at the end of the 2028 season. In August, Bibb made public his administration’s $461 million plan to help fund repairs and improvements and, when that was rejected by HSG, he offered an alternative plan that involved redeveloping land at Burke Lakefront Airport.
The Browns said renovating the current stadium would cost about $1 billion, a price nearly quadruple what the stadium cost to build in 1998 ($283 million, or about $538 million in 2024 dollars).
That’s also more than double the $430 million the Baltimore Ravens are spending to renovate M&T Bank Stadium.
Cleveland has paid about $350 million to build and repair Cleveland Browns Stadium since 1998, according to Signal Cleveland, with most of that cash coming from the county’s sin tax on alcohol on cigarettes, as well as taxes on tickets, parking, car rentals.
Bibb’s administration estimates the stadium has cost the public
nearly $243 million since 2010, while the Browns say they’ve spent $154 million on stadium improvements since 2012 and spend another $10 million yearly on maintenance, security and administration costs.
The Browns told Crain’s Cleveland this summer that the stadium still needs more than $400 million in capital repairs over the next 30 years “just to keep the building open."
Osborne Engineering conducted a separate facility condition audit on the stadium in October 2023 — this audit is required every five years by the Browns and the city as part of their mutual lease — and found that the stadium will need $117 million in capital repairs over the next 10 years alone.
The one thing the Browns have going for them? No one particularly likes Huntington Bank Field, which has never hosted a playoff game since opening in 1999 and famously earned the moniker “Factory of Sadness.”
But as far as economists are concerned, Haslams’ decision to leave downtown for the suburbs might deserve a different label: Mistake by the lake.
“The special revenue fund we are using for the pilot is made up of delinquent tax collections.
The county retains 2.5% of that locally, and we feel very strongly that this program — helping keep people in their homes, making better longer-term decisions and stabilize neighborhood housing — is a perfect fit for those funds,” Cromes said.
EXECUTIVE RECRUITER
Cromes said his office is looking for a solid base of data from the pilot and would also look to additional funding partners if the program proves effective.
If the two-year pilot and fundraising is successful, the county would be open to growing the program and possibly re-evaluating the eligibility parameters as well.
To be eligible for taxpayer assistance, applicants must be age 70 or older, a single or joint homeowner with a primary residence in Cuyahoga County and have an annual household in-
“We believe that that we landed on a good test pool to try and maximize our impact with the people who are most likely to be facing the direst consequences, and from here we think we can get a good sense of the efficacy of the program,” he explained.
If a county resident meets those requirements and is selected, the applicant must agree to: set up a tax delinquency payment contract; pay all future property taxes through the Easy Pay installment program; and participate in CHN counseling and budget sessions.
The taxpayer assistance funds then can be used to pay delinquent, late or current property taxes or pre-existing tax liens.
Foreclosure fees and court costs related to foreclosure can also be paid using the program.
For taxpayers who are not eligible for the 70/70 program, there might be still be some relief com-
ing from the Ohio statehouse where there have been multiple pieces of bipartisan legislation introduced to assist, reduce and minimize property taxes.
Ohio House Bill 645 would provide a $1,000 property tax rebate to more than 1.3 million middleclass homeowners and renters who have tax payments that exceed 5% of their income.
The caveat: That legislation would have to pass both chambers and be signed by the governor before the end of the year or lawmakers will have to start again in January.
Cromes is hoping that whatever happens with the handful of bills, the legislature takes a closer look at how homeowners are taxed overall.
“The way our taxes interact with the market, and more broadly, how we pay for public services is a big question mark for me,” Cromes said. “There is a conversation to be had about our reliance in Ohio on property taxes and whether it is the smartest way to do what we do.”
A rendering shows the Browns stadium with Huntington Bank’s name. | cLeVeLAND brOWNS
When too many athletes can be a big problem
Small colleges seem to be at a higher risk of closing when they become too reliant on student-athletes for enrollment
By Joe Scalzo
When Jennifer Schuller took over as president of Division II Lake Erie College (LEC) 15 months ago, there was a problem with the student-athletes on campus: There were too many of them.
Well, that’s not exactly right. The number of student-athletes was fine. The percentage wasn’t. Athletes made up 83% of LEC’s enrollment in Schuller’s first year, which is great for the health of the student's bodies but not great for the health of the student body.
Small liberal arts schools like LEC typically want student-athletes to make up about 30%-35% of their enrollment. A few aim even higher. None aim for 83%.
“It’s not sustainable for institutions — particularly ones our size — to be reliant almost singlehandedly on athletics for their enrollment,” Schuller said. “I love our student-athletes, and I don’t want to disparage them at all, but colleges have to be more than just that.”
Schuller's problem wasn’t unique. Over the past two decades, as small colleges and universities struggled with enrollment declines, they’ve increasingly relied on athletics to help keep the seats filled and the doors open.
Before it closed last spring, student-athletes made up about 70% of enrollment at Notre Dame College (NDC). Student-athletes make up 74% of Hiram College’s 2024 undergraduate class. And while LEC made great strides in reducing its student-athlete percentage over the last year — more on that in a minute — it’s still around 73%, with athletes making up about 64% of this year’s incoming class.
“Ideally, we’d like to get it down below 50%, but we’re pretty proud of the fact that we were able to move the needle 10% in one year,” Schuller said.
Recruiting athletes isn’t a bad thing — studies show that athletes perform better in the classroom, graduate at a higher rate and have fewer disciplinary issues than non-athletes — but relying too heavily on athletes to bolster enrollment has its drawbacks, from increased costs (coaches, facilities, equipment, travel, etc.) to retention problems (particularly in large-rostered sports like football) to the overall effect on campus culture.
“If the goal for smaller, liberal arts-based institutions is to have an integrated and inclusive environment, having more athletes might do the opposite,” said Stephen Dittmore, a former dean and professor at Baldwin Wallace University who is now the dean of the College of Education and Human Services at the University of North Florida. “Athletics isn’t always integrated with the rest of the student body. It risks alienating certain segments of campus and creating a division between
athletes and non-athletes”
More troubling is the fact that having an outsized percentage of student-athletes seems to put small colleges at a greater risk of closure. In a recent article on his Substack, “Glory Days,” Dittmore studied small colleges that have recently closed, including NDC. Six of those seven schools had fewer than 1,000 total students. At all six, athletes made up at least 44% of the student population.
Dittmore isn’t saying that 44% is the tipping point for small colleges, “but it does seem safe to say there is a relationship there, and that merely adding sports in an attempt to grow enrollment may not be the savior administrators hope it will be,” he wrote.
Staying balanced
Brian Polian, vice president for athletics and national engagement at John Carroll University, understands the importance of small college athletics as a student (he played four years of football at JCU in the 1990s) and an administrator. Last fall, 43 former Blue Streaks (alumni and former coaches) worked in the NFL, including Houston Texans GM Nick Caserio, a finalist for NFL Executive of the Year.
JCU’s homecoming football game against Baldwin Wallace (BW) on Oct. 19 drew about 5,000 people to campus, “and short of commencement, there’s not another event that draws 5,000 people to our campus each year,” Polian said.
“There’s no doubt that athletics, even at a small school level, is the front porch to a university,” Polian said. “We acknowledge the power that a very healthy athletic department can have on the perception of a university and the amount of eyeballs paying attention to the university.”
But Polian, who was hired as the school’s athletic director in May 2023, also understands that a “very healthy” athletic department is a right-sized one, which is why he and other JCU administrators have tried to keep the school’s student-athlete enrollment between 30-35%.
Student-athletes make up about 30%-32% of JCU’s enrollment, Polian said, which is similar to BW, whose incoming class of 698 featured 247 athletes (35.4%).
“That’s probably the sweet spot,” Polian said of the 30%-35% figure. “As much as we love all of our coaches and all of our sports, we also understand that we’re an institution of higher education and not a sports academy. We’re not IMG (Academy). We’re here to work in conjunction with one another.”
Undergraduate enrollment at Ursuline College, which only offers women’s sports, is about 25% (167 out of 677), while Case Western Reserve University had about 560 varsity athletes out of a combined undergraduate and graduate enrollment of 12,300.
“I’ve heard really smart enrollment professionals who refer to it (student-athlete percentages) as the canary in the coal mine,” Polian said. “The minute you start seeing those athlete numbers get out of whack, it speaks to the general health of the institution.”
That said, JCU may be open to adding more athletes to campus, but it would come from adding sports, not expanding rosters, Polian said. The Blue Streaks added men’s and women’s lacrosse in 2013 and, last fall, became the nation’s first Jesuit university to offer women’s wrestling. JCU’s 12 women's sports are among the most offered by any Division III conference, but Polian said the school either tries to keep the roster sizes manageable, or offers reserve (i.e.,
able to provide kids with a really positive experience,” Polian said. “If you’re paying tuition to play football and there are 220 members on the roster, what kind of coaching are you getting? What kind of personal attention are you getting? When you have rosters that are cumbersome, that starts to speak to the student experience. And if the student experience is negative, that’s not good for anyone.
“I’m not going to ask coaches to manage rosters that are simply cumbersome because they want to get people through the door. That’s irresponsible.”
Threading the needle
At Lake Erie College, Schuller is aiming to thread the needle between embracing the school’s student-athlete culture and making the school more attractive to non-athletes.
junior varsity) teams that compete in a limited number of games.
JCU’s growth in athletics mirrors what’s happened in the rest of the country. A recent study involving the Council of Independent Colleges found that the median number of athletes participating at CIC institutions was 240 in 1992. By 2015, it was 400.
“Sometimes you’ll see schools add sports to comply with Title IX, but you have to add the right sports; you don’t want to add women’s rowing if you’re nowhere near a river,” said David Ridpath, a professor of sports business at Ohio University. “But some of these schools are going to have to reinvent themselves. You can still use athletics to boost enrollment, but a lot of these schools that are closing probably overemphasized athletics too much.
“Making it the No. 1 priority, like they did at Notre Dame, is not sustainable.”
Division III schools, in particular, are often tempted to increase roster capacity since, unlike Division I and II schools, they don’t offer athletic scholarships. The average athletic scholarship for men in Division I is about $14,270 per year, according to Debt.org, while in Division II it's about $5,548. For women, the average is about $15,162 in Division I and $6,814 in Division II.
According to the NCAA, about 75% of Division III athletes receive some sort of financial aid — whether need-based or meritbased — but most non-athletes do as well.
Polian said he is protected from those pressures at JCU, but he said coaches at other Division III schools sometimes recruit athletes knowing they aren’t good enough to compete at the college level, “but they’ve got to fill those spots,” Polian said.
“We feel like, right now, we’re
To help athletes, LEC is adding majors that are particularly appealing to those students, offering healthier food options in the dining hall (a major issue for athletes) and upgrading sports facilities, such as the recent project that added turf to an on-campus field for the lacrosse and soccer teams.
But she also looked to beef up music and art offerings — almost 40 students signed up for a new student choir — as well as activities related to LEC’s STEM Scholars program. LEC also added some new academic majors designed to appeal to non-athletes, and is finding ways to boost an honors program that was previously “lackluster at best,” Schuller said.
“We were looking at things we could offer to students who aren’t on an athletic team,” she said. “And I thought we implemented that plan.”
Polian’s father, Bill, was one of the most successful executives in NFL history with the Buffalo Bills, Carolina Panthers and Indianapolis Colts. His teams made six Super Bowls, including a win in Super Bowl XLI, and he was inducted in the Pro Football Hall of Fame in 2015.
One of the main lessons he taught his son was the importance of balance, whether that was in building a staff, a roster or an organization.
“If there’s too much of any one thing, it’s not healthy,” Brian Polian said. “There has to be representation across different groups — and that’s no different if you’re looking at a college or university or an NFL team. Athletics is a really important piece of the puzzle, but like everything else, it works in conjunction with academics, residence life and the student experience. If one thing becomes giant, then everything gets out of whack.”
Bottom line? Athletics will always play a role in helping colleges and universities thrive.
But as too many schools are learning, they can’t be the main reason they survive.
LEC’s fall 2024 class was 64% athletes, lowering the school’s overall student-athlete percentage to 73% from 83% the year prior. | LAKE ERIE COLLEGE
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