Crain's Cleveland Business, December 4, 2023 by Crain's Cleveland Business

CRAINSCLEVELAND.COM I DECEMBER 4, 2023

DION Art lights up Cleveland Born in Ukraine and disrupted by war, the business recently established U.S. headquarters downtown ◗ By Michelle Jarboe There’s

a mesmerizing swirl of light and color hidden behind the darkened windows of a building on East Ninth Street in downtown Cleveland. That’s where DION Art, a busi-

ness born in Ukraine and driven across an ocean by war, recently set up its U.S. headquarters and showroom. The company makes angular sculptures, water features and kinetic light fixtures called sky fountains.

Founded by a Russian expatriate and a Ukrainian businessman, DION Art has established a small manufacturing operation here. It’s keeping a factory running in Ukraine, despite a sharp decline in business across

eastern Europe. And its executives are out pitching custom-designed creations to local institutions, prominent landlords and major employers. See DION on Page 16

GUS CHAN

DION Art’s U.S. leadership team: James Fiore (from left), Ilya Palatnik, and Igor Velykyy stand in the company’s showroom..

Longtime employee to take over ‘Christmas Story’ house By Jack Grieve

The longtime owner of the house from “A Christmas Story” is passing the property and its associated museum and tour business to one of the company’s longest-serving employees. Brian Jones, who opened the

Tremont house to the public in 2006, confirmed to Crain’s that current CEO Joshua Dickerson is set to take over as the company’s managing partner. Jones will stay on as a silent partner, but the business will be Dickerson’s operation to run. Dickerson has been helping

out at the company since before he was even on the payroll. His wife was one of the first employees at Jones’ North Olmsted warehouse, and Dickerson would help package orders and do yard work at the property in his spare time. He officially joined the compa-

ny in 2008 and was named CEO in 2017. “It’s been quite the roller coaster ride,” he said of his journey to this point. A Cleveland native, Dickerson has a particularly strong appreciation for the house.

“What an awesome opportunity to get to represent something that’s so Cleveland.”

See HOUSE on Page 17

— Joshua Dickerson, CEO and new owner of A Christmas Story House & Museum

HEALTH CARE AI has potential to revolutionize health care — but biases could worsen health disparities.

MANUFACTURING Stow-based turntable maker spins up success as vinyl records have made a remarkable comeback.

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AI biases could worsen health disparities Researchers use AI to improve clinic access

Experts: Technology could lead to advancements but brings biased algorithms By Paige Bennett

Diagnosing chronic illnesses. Personalizing medicine. Improving staff efficiency. Health care professionals see a number of potential uses for artificial intelligence in the industry, but as new technology develops, there also is the risk of biases infiltrating algorithms and worsening health disparities. “It’s not just to create the technology and then throw it in the hands of clinicians,” said Dr. Paul Ford, who works in the Cleveland Clinic’s Department of Neurology. “You constantly go back and evaluate how efficient it is and what any untoward side effects are and if you need to go back and revisit the algorithm or the training data or whether there’s systemic bias, societal bias, some built in assumption.” The rise of AI could lead to huge advancements in health care, but experts say the industry must take a methodical approach to adopting new technologies to ensure bias stays out of these models. A big reason for the growing conversation around AI has been advancements in genomic data science, an interdisciplinary field that uses statistics and computational biology to analyze data created by modern genomics technologies. Many researchers believe genomics could revolutionize health care through precision medicine, a type of care that uses molecular biomarkers to evaluate a patient’s risks and prognosis, and tailor treatment and prevention to their specific genes. But relying on these biomarkers to make accurate assessments of a patient’s health could be a problem for diverse populations. “A lot of genomic data tend to be mostly in northern European ancestry,” said Dr. Nicholas Schiltz, an assistant professor in Case Western Reserve University’s Frances Payne Bolton School of Nursing. “When you’re building models on those, the models are trained specifically for that data, so when you go to try to apply it to other populations, it might not actually perform well or be relevant to them.” Bias problems have been detected within some of the predictive algorithms that health care systems have used for years. A 2019 study published in Science found that an algorithm used by many hospitals to decide which patients need care was determining that Black patients had to be much sicker than white patients to be recommended for the same treatment. The algorithm had been designed using past data on health care spending, which did not consider that wealth and income disparities also play a role

A physician uses an AI program that can help read mammograms for early detection of breast cancer. | CLEVELAND CLINIC

in the health care spending habits of Black patients. Dr. Daniel Spratt, chair of the Department of Radiation Oncology at UH Cleveland Medical Center, said there are three main forms of bias: data-driven, algorithmic and human. Data-driven biases emerge when researchers assume an algorithm that works for a certain group can be applied to the entire population without further validation. Algorithmic bias happens when a dataset doesn’t contain fair representation of a particular group. Human bias comes from issues that already exist in society, such as structural racism. Ford, who works with the Clinic’s AI team to identify potential biases or ethical concerns in projects before they move forward, said it’s important for researchers to be mindful about biases and the harm they can inflict in the early stages of design. “Really it needs to be a thoughtful process at the beginning to say we know some traditional biases around economics, equity, access, things like gender,” he said. “We’re obligated to make sure that we have assessed for those, then to run algorithms alongside to say, ‘Are there other things, patterns that we need to evaluate to see whether they contain some of the biases we hadn’t thought of?’” Spratt said transparency is key to preventing unintentional negative consequences.

For instance, if a model is designed based on a dataset of mostly white patients from Wisconsin, researchers should not automatically assume it will work for patient populations in Cleveland. It’s crucial that researchers are open about where their data is coming from, he said, and that they gather information from diverse patients if they plan on applying their algorithms to larger populations. “I think data sharing is now probably more important than ever to make sure that you are enriching and including either, whether it’s rare cancers or minority populations, different socioeconomic factors,” Spratt said. “Data sharing will enable (researchers) to have enough data on potentially underrepresented data to make sure that AI algorithms that are meant to be applied to those less common things to prove that they work or don’t work in those settings.” Ford said clinicians and patients who use AI or other forms of machine learning must be empowered to recognize when something seems amiss. The end user of any technology should know how to look for problems and report anything that needs further review, he said. “The reality is, AI can be harmful,” said Dr. Yasir Tarabichi, medical director of the virtual care enterprise and director of clinical research informatics at Metro-

Experts believe AI could lead to advancements in health care, but technologies bring the risk of biased algorithms that could worsen disparities. | CASE WESTERN RESERVE UNIVERSITY

Health. “AI can be biased. It can bring out the worst tendencies that arise from what we already know in this world to be a lot of inequity and structural racism and bias. So, if you just hold AI up as a mirror, it’s just going to reflect all the bias that exists in our world today.” Tarabichi said researchers should treat algorithms like new medications and put them through robust evaluations. It’s also important not to assume that every algorithm is going to be fair and representative simply because it’s based on data, he said. Another way to reduce bias is to ensure that diverse populations are involved with building algorithms, Schiltz said. “A lot of people who build these models tend to be white males, so trying to be more inclusive in terms of diversity of gender, race, ethnicity (is important),” he said. “Get people hired into these positions to build these models. Bring diversity of perspective.” From 2006 to 2016, bachelor’s degree recipients in biological sciences, computer sciences, mathematics and statistics were only 8.7% Hispanic or Latinx, 7.8% Black or African American and 1.9% multiracial or indigenous American, according to a 2022 journal published by the National Library of Medicine. Experts agree the health care industry should take a slow and deliberate approach to rolling out new technology. Ford said it was “heartening” to see the U.S. set guidelines for AI development. In October, President Joe Biden signed an executive order on AI that the White House says will establish new standards for safety, protect citizens’ privacy and advance equity and civil rights. Spratt said the appropriate guardrails must be in place before new technologies are implemented. “All this AI stuff is not going to redefine health care overnight,” Tarabichi said. “It has to be put through its paces, and we have to make sure that we are helping and not harming the community that we serve.”

A team of MetroHealth and Case Western Reserve University researchers used artificial intelligence to improve clinic access for Black patients. Dr. Yasir Tarabichi, medical director of the virtual care enterprise and director of clinical research informatics at MetroHealth, and a team published a study earlier this year that showed how using AI to predict the probability of no-show appointments combined with personal outreach to at-risk patients could improve show rates, particularly among Black patients. “The framing here for this particular work is, there’s a lot of algorithms, predictive algorithms and artificial intelligence, machine-learning algorithms out there, that can show you the risk of an event,” Tarabichi said. “In this case, we’re able to predict the likelihood that somebody’s going to miss their appointment.” No-shows negatively affect patients and caregivers alike. For a patient, missing an appointment means losing access to crucial health care. For a physician, it results in wasted time that could be spent taking care of someone in need. Tarabichi and his team looked to use AI to address this issue, with the understanding that AI can have negative consequences if not used properly. To prevent biases, Tarabichi and his team started by asking themselves questions. Is there value in doing this work? Will the predictions be fair and equitable to diverse patient populations? What can be done with the information gathered? Will the actions that follow also be fair and equitable? With no-shows, it was important to consider the factors that led to patients missing appointments. Tarabichi said transportation and childcare barriers tend to prevent at-risk patients from making it to their health care provider. But simply using AI to predict the probability of an at-risk patient missing an appointment and then giving that time slot to someone else would only worsen health inequities. “If we just applied something without thinking, if we just decide somebody’s not going to show up, we’re going to open up that appointment for somebody else, for instance, that’s a reallocation of scarce resources, which could actually widen disparities,” Tarabichi said. “If you give people who are more available more opportunities for scheduling, then you start edging folks out.” Instead, the researchers used the predictions to provide additional outreach to potential no-show patients. A random selection of these patients received phone calls from MetroHealth schedulers between January and September 2022. If patients said that transportation or other barriers might prevent them from making it to their appointments, then schedulers offered resources or telehealth options. Black patients who received phone calls saw a 36% reduction in no-show rates compared to those who did not receive a phone call.

2 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 4, 2023

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State football championships to remain in Canton through ’26 By Joe Scalzo

When Ohio High School Athletic Association commissioner Doug Ute talks with his peers from other states, the discussion often turns to where they play their football state championship games. “I stick my chest out a little bit and say, ‘We play at the Hall of Fame,’” Ute said. “Our kids get an opportunity to play in Canton, where greatness is in football.” That won’t change until at least 2027. The OHSAA and the Pro Football Hall of Fame announced a three-year extension that will keep the football state championships at Canton’s Tom Benson Hall of Fame Stadium through 2026. The agreement includes two option years. “We’re so excited to be here; it’s where we need to be,” said Ute, who announced the extension on Nov. 27 at a meeting of Canton’s Pro Football Hall of Fame Luncheon Club. “We talk a lot in our office about our 28 sports where state tournaments are held. When you get to that level, we want our kids to have a ‘wow’ factor when they get off the bus. What I say about Canton is, you have a ‘wow’ factor on I-77 just looking over at the facility, not just stepping off that bus.” Benson Stadium has hosted the finals every year since 2017 except in 2020, when the games were held in Obetz and Massillon due to the COVID-19 pandemic. Stark County hosted the finals every year from 1990 to 2013, with the championship games moving to Ohio State from 2014-16 when Fawcett Stadium was torn down and Benson Stadium was built. The Hall of Fame Village — which surrounds the museum — is finishing up the second phase of its construction, which concludes with an indoor water park and a Hilton Tapestry ho-

tel. The Village already features restaurants, rides, retail outlets and training facilities such as youth fields and an indoor sports dome. “We talk a lot at the Pro Football Hall of Fame about enshrinees having Canton as their second home,” said Rich Desrosiers, the Hall of Fame’s chief communications and content officer. “We want the high school football championships to have their second home in Canton hopefully for the rest of my lifetime and on it goes.”

Division expansion likely In other news, Ute said his organization is having discussions about expanding the number of divisions in sports such as basketball and volleyball. Those sports currently compete in four divisions, but there’s a push to expand to as many as seven divisions, the same number as football. Ohio has more than 790 teams that compete in boys basketball, girls basketball and volleyball, Ute said, which is about 100 more teams than compete in football. That has created large discrepancies in enrollment, particularly in Division I. For instance, Cincinnati Mason has an enrollment figure of 1,251 girls in 2023, which is based on the number of students in grades 9-11 last October. That’s nearly four times as many students as the smallest Division I girls basketball school in Ohio, Grafton Midview, which had 323. “If I’m at School X and I’m playing the largest school we have, which is Mason, they may have 500 or 600 more kids than we do, but we’ve got to play them in the tournament,” Ute said. “In Division, there’s some disparity and we’re talking about that issue. “You’ll see a change at some point.”

NIL not coming soon One thing that’s not coming soon? NIL opportunities. The OHSAA’s member schools overwhelmingly voted against a proposal in May of 2022 that would have allowed Ohio’s prep athletes to cash in on their name, imagine and likeness (NIL). The proposal was voted down 538-254. As of October, 31 states allow high schoolers to cash in on NIL opportunities, so the issue isn’t going away. But last year’s vote made it clear that it’s not a priority for the OHSAA’s member schools, Ute said. “It wasn’t just defeated; it got its butt kicked,” Ute said. “I don’t see it coming real quick to us.” Most Ohio high schoolers are unlikely to cash in on NIL — at least not for serious money — but Ute did say there was a Ohio high school basketball player who recently had to turn down a lucrative social media endorsement deal because it would have cost him his eligibility. That player — who is now playing college basketball — had the oppor-

The Ohio high school football state championship games will remain in Canton through 2026, with an option for two more years. | HALL OF FAME VILLAGE

tunity to model some clothes and earn 80 cents for each “like” he got on social media. “He had over 400,000 followers,” Ute said. “The family was really good about it and asked, ‘Can he do that and defer the money until later in

life?’ And we still had to say no. This wasn’t your uncle trying to take advantage of your athletic ability. This was a solid family. He had the opportunity to make some money through his name and we had to say no.”

DECEMBER 4, 2023 | CRAIN’S CLEVELAND BUSINESS | 3

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Turntable maker spins up success from vinyl resurgence

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Imagine selling buggy whips in the age of the car and watching the horse and carriage become the next cool thing all over again. That’s a bit of what it’s been like for Audio-Technica, the iconic Japanese audio company that has its U.S. headquarters in Stow. It makes a lot of audio devices, including microphones and headphones used in studios and living rooms around the world. It also makes the turntables that play vinyl records as well as the cartridges and styluses (needles) that make them work. They’re coming back. But, once, they were ubiquitous. “If you go back to the mid-1970s, the estimates were there were about 70 million turntables in (U.S.) households,” said Kurt Van Scoy, Audio-Technica’s U.S. vice president of products, business alliance and marketing. “Today, if there are 20 million active turntables out there, I’d be surprised.” Van Scoy’s point, that the market still is not nearly what it was years ago, is valid. But he says he has seen a remarkable turnaround in the last 10 years or so. In his mid-50s, Van Scoy remembers when turntables were “a primary source of entertainment,” for people his age and older. Everyone had one, whether they listened to rock, jazz, or classical. For young people, the LP and its big jacket, photos, booklets and other things that came with it were a way to connect with their favorite artists. Van Scoy also remembers when, seemingly overnight, all of that went away with the advent of the compact disc. People couldn’t ditch their old vinyl fast enough and were eager to replace its clicks, pops and hisses with the clean sound of CDs, not to mention CDs’ ability to switch from one track to another without someone handling a turntable needle like a jewel cutter. Audio-Technica, like many other companies, got out of the turntable market, before reentering it in 2003. Van Scoy said he has seen two phases of the turntable’s comeback. First, he said, people wanted to digitize their old album collections and Audio-Technica helped them to do that by producing USB turntables that could feed music into a computer. In the background, there were also still a few audiophiles and hipsters who craved the “warm sound” that vinyl records are famous for among devotees—and they were also buying turntables. But in more recent years, Van Scoy said he’s seen a broader readoption of vinyl records and turntables, a phenomenon he said really took off during COVID, when people were stuck in their homes and looking for new, or old, ways to entertain themselves.

Audio-Technica U.S. Marketing Manager Bob Peet shows off a turntable at the company’s facility in Stow. | DAN SHINGLER

Suddenly, there weren’t enough turntables to go around and Audio-Technica couldn’t make them fast enough. Neither could some other makers of turntables that use its cartridges. “We were able to increase (capacity) and meet some of the market demand but we did not by any stretch of the imagination meet the market demand for what we could have sold,” Van Scoy said. “We were fairly back ordered from mid-2020 to the end of ’21.” Since then, Audio-Technica has expanded, but it has done so conservatively, Van Scoy said. No one’s quite sure how far the vinyl record craze is going to go or how long it’s going to last, after all. The company increased its manufacturing operations, which are in Asia, and added a new business unit to handle the Mexican and Latin American markets, which reports to Audio-Technica in the U.S. The company now employs about 100 people in Stow and has about 50 people handling the other American markets, up from about 85 employees, all here in Northeast Ohio, handling all those markets about five years ago. Not all of that growth has come from turntables, but they’ve been the fastest-growing product line in recent years, Van Scoy said. The company has also developed a lot of new turntable products. They range from small, inexpensive record players in boxes with built-in speakers and Bluetooth output to expensive turntables used by audiophiles and studios. The company introduced a limited-edition turntable to celebrate its 60th anniversary last year and, even though they cost $1,200 each, all 3,000 of them sold out in a matter of days, said Bob Peet, Audio-Technica’s U.S. marketing manager. If that sounds pricey, well, it is. But it’s far from the company’s most expensive turntable product. It makes a cartridge that costs $5,000 for those who really want to get the most out of their albums and can afford to chase nuance.

But $5,000 cartridges are not Audio-Technica’s mainstay. Most of the turntable cartridges it sells go for much less, with some of its most popular models selling for under $100. With the broad mix, the company has captured a good share of the market since then. Van Scoy said that between its own turntables, replacement cartridges and the cartridges it sells to other turntable manufacturers, the company has more than half the U.S. market for cartridges, along with a leading share of the turntable market. The question now is: How long will the new popularity of vinyl last and how long can the growth of the medium continue? Van Scoy doesn’t necessarily think the market will continue to grow at the pace it’s seen since Covid, but he’s optimistic based on the number of young people buying records and turntables. “Generations X, Y, and Z are buying more vinyl than the boomers,” he said. Others agree, including Matt Earley, who in 2008 co-founded Gotta Groove Records in Cleveland. Gotta Groove will press about 1.5 million records this year, Earley said, up from about a million in 2018, despite the fact that there are a lot more companies making records today than there were just a few years ago. “The explosive growth we’ve seen, over the last three years in particular, is not sustainable and I don’t think anyone thought it would be,” Earley said. “But it’s plateaued at a much higher level. And I don’t think it’s going to go away any time soon.” Earley, who said he’s gotten to know Van Scoy through their work in the industry, said Audio-Technica is a big player in the industry. “It’s kind of ubiquitous,” Earley said. “Almost any shop that sells turntables has Audio-Technica. We use them for quality control . . . their stuff is great.” And, Earley noted, “It’s kind of cool that we have both a record company and a big turntable company right here locally.”

4 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 4, 2023

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Rates are in the middle of the pack compared with other markets, report finds By Jeremy Nobile

Among two dozen states that have legalized recreational marijuana, the current effective tax rates for adult-use cannabis in Ohio—which will be between approximately 16% and 18%, depending on the county—are right in the middle of the pack, according to a new analysis by The Ohio State University’s Drug Enforcement and Policy Center. DEPC’s report comes as Ohio lawmakers consider adjusting proposed tax rates for recreational marijuana following the passage of Issue 2 last month. While the state’s adult-use law is slated to go into effect Dec. 7, the soonest rec sales are expected to commence is September 2024. This is due to several procedural steps that must be addressed first. Regulators must still draft some rules for the rec program, for example, and adult-use licenses must be awarded to cannabis businesses. In the meantime, Ohio Gov. Mike DeWine has called on the state legislature to review various aspects of the adult-use law. This

includes finding a “sweet spot” for tax rates, which the governor doesn’t want to be too high as to dissuade people from buying legal marijuana here but also not too low. But according to DEPC’s research, Ohio’s taxes for legal marijuana seemingly are already in a sweet spot when compared with other markets. Issue 2 levies a 10% excise tax on adult-use sales. Coupled with state sales tax of 5.75% plus local sales tax, which varies by jurisdiction, the effective tax rate at the point of sale on rec products in Ohio should be between about 16% to 18%. DEPC notes that comparing tax rates among all legal marijuana markets is complex due to so many variations. Depending on the state, those taxes could include a special marijuana sales tax as a percentage of price; general state sales tax; applicable local sales tax; weight-based sales tax; and a tax based on THC potency. Nonetheless, when looking at 19 states with a percentage-of-price retail tax at the point of sale, the median and average tax rate among those states are 17% and 18%, respectively. Among those 19 states, just two charge less than 10%. Eleven states charge between 10% to 19%. And

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six charge 20% or more. Meanwhile, Michigan—where many Ohioans go to purchase legal marijuana—has an effective tax rate of 16% (there are no local sales taxes there). A concern among industry stakeholders is that some Ohioans may still go to Michigan for recreational marijuana if taxes and overall prices are lower. An even higher tax rate, it is

P R E S E N T E D

feared, could have the effect of pushing consumers away from legal shops here, whether those people are crossing state lines or buying from the illicit market. “In respect to the tax rate, the Ohio General Assembly will need to balance their desire to maximize tax revenue and maximize deterrence of problematic use with their desire to curtail the illicit cannabis market as much as

possible,” according to the DEPC report. “A higher tax rate might theoretically bring in additional tax revenue, but it can also incentivize adult customers to purchase their cannabis product from unsanctioned sellers if the higher tax results in uncompetitive prices for legal cannabis product.” As of this March, taxes and fees related to the medical marijuana program have generated an estimated $183.33 million for Ohio’s state and local government entities since sales began in 2019, according to DEPC. With an adult-use program in place, Ohio could see approximately $276 million to $404 million in additional annual tax revenues in the fifth year of rec sales. Those projections could be more or less on target contingent on a host of factors that may shape consumer demand, of course, including pricing and taxes. DEPC’s latest analysis also takes a look at how tax proceeds are expected to be disseminated here and how that compares with other markets. How proceeds are presently set to be allocated is another aspect of the adult-use law under consideration by Ohio lawmakers. Industry stakeholders are waiting anxiously for clarity on rules and regulations that will shape the market as they attempt to prepare for adult-use sales.

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EDITORIAL

On safety, we’re all in it together O

ne of Cleveland Mayor Justin Bibb’s many skills is the ability to find the right words, mixing empathy and resolve, when violence strikes the city and its citizens. He has to draw on this skill far too often. The latest instance came Nov. 25, after the big Public Square Christmas tree lighting. The annual event draws tens of thousands of people, many of whom aren’t frequently downtown. This year’s lighting was, as always, beautiful, but the joy it provided was undercut shortly before 9 that evening when two teens were shot near an area of the square where fighting among juveniles had broken out. Kids being stupid and reckless? Undoubtedly. There’s video of the incident, though, and it’s scary. The injuries of those shot were serious, and it’s fortunate the shooting took place after the lighting ceremony events had concluded and that more people weren’t hurt. The mayor spoke for everyone who lives in, works in, does business in and cares about Cleveland when he said, “I am both saddened and angered by this senseless violence. Enough is enough. It is time to break the cycle of violence and find better ways to resolve conflicts. Clevelanders deserve to feel safe.” This shooting, like one this summer in the Warehouse District that involved even more people, draws disproportionate attention because of its timing and location. Both Public Square and the Warehouse District are among the liveliest parts of the city and downtown. Incidents there amplify the already considerable anxieties about public safety. This isn’t just a Cleveland problem, of course. And yes, statistics show that despite recent increases in incidences of violent

The latest public shooting in downtown Cleveland is a reminder of the ongoing concerns surrounding public safety. | CUSHMAN & WAKEFIELD-CRESCO REAL ESTATE

Mayor Bibb highlighted an issue that sometimes gets overlooked: The solution comes from everyone. crime here and elsewhere, crime overall is lower than it was in previous decades. Small comfort, though, when incidents hit close to home. We shouldn’t have to live like this. Cleveland, its residents and business owners need leaders to focus on making the city safer. People should be able to go about their daily lives without fear. A bulked-up police presence is a critical part — though only part — of the answer. Michael Deemer, president and CEO of the nonprofit Downtown Cleveland Inc., noted in a statement after the Nov. 25 shooting that he was “grateful for the rapid response of the Cleveland Division of Po-

lice” to prevent further violence that night. He said communication between police and downtown stakeholders “is at an alltime high,” underscoring the point that enhanced cooperation with law enforcement is a key to making the city safer. The city’s police department, though, remains down more than 200 officers. There are efforts underway to fix that, fast, including significant pay increases, improved benefits, a revamped shift structure to provide more weekends off, signing bonuses of up to $5,000 for police officers and a jumpstart for recruits with previous military experience or degrees.

The Bibb administration also has proposed increasing the age at which a person can become a police officer. The age is currently set at 40, but the administration wants to increase it to 55, to broaden the pool of people who could join the force. City Council still needs to weigh in, but assuming older applicants meet physical, psychological and background standards, we see no reason to make an arbitrary age cutoff a limiting factor in attracting talent to a police force that needs people. In this case, 55 is the new 40. Bibb in his statement highlighted an issue that sometimes gets overlooked in the emotional discussion of crime and violence: The solution comes from everyone. “Safety isn’t just the concern of law enforcement; everyone has a role to play to ensure our public places are safe,” Bibb said. “This includes all of us, from government and police to residents, parents and caregivers. Report concerning activity. Know where your children are. Get involved with groups and organizations that promote neighborhood safety initiatives.” The causes of crime are complex, and the solutions are hard. But they aren’t impossible. They require enlisting health, education, labor, and housing agencies to help reduce recidivism and strengthen communities. Equipping people with skills to make better choices. Engaging key people — including police leadership and officers — with respect and an expectation of accountability. Bibb in a recent interview with Crain’s reiterated that he sees public safety as his top priority. “The success of our city depends on safety,” he told reporter Kim Palmer. And doing that requires all of us to work together.

PERSONAL VIEW

The HR department should do things differently in 2024 1. Workforce: Do you know what they Most human resources profesreally need? sionals are feverishly finishing No company is immune from their employee benefits renewals the struggle to fill jobs but the and piling on more priorities for ones that require employees to be 2024. on site have the biggest challenge With so much uncertainty in the in 2024. According to the U.S. Buworld, next year might be the time reau of Labor Statistics, the U.S. is to do it differently — try one thing holding steady with almost 10 milat a time. Multitasking is a myth; doing one Kate Hubben lion open jobs — a staggering stathing at a time is a superpower. Our is vice president, tistic. The gig economy is real and manufacturing, for one, is feeling brains are never successfully multi- corporate the impact. Instead of workers tasking but rather darting back and benefits, for showing up for 8-hour shifts, they forth, elevating our stress levels. Ap- insurance are driving Ubers, delivering Door ply this to the HR agenda for 2024 broker and and organize your goals to be ac- consultant NFP. Dash and making their own schedules. complished in sequence, not all at Manufacturing companies know that once. Your teams will thank you. Here are some key areas to consider for they need to consider innovative solutions 2024, potentially targeting them one at a time: like truncated shifts, job sharing, flex time

Interim Editor: Ann Dwyer (adwyer@crain.com) Managing Editor: Marcus Gilmer (marcus.gilmer@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com 6 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 4, 2023

— things that are tough for assembly and rigid deadlines. The Harvard Business Review asked 5,700 workers what options were being introduced at their companies to accommodate working onsite full time and they said the following: ◗ 55% were implementing a relaxed dress code ◗ 33% were offering flexible start and end times ◗ 31% were offering choice over hours worked When the same employees were asked what options they actually wanted, 57% wanted more PTO and 44% wanted a 4-day work week. Find out what your workforce wants and needs before you find solutions. 2. Employee handbooks: How will you handle cannabis? With the passage of Issue 2 which now allows Ohioans to possess or purchase up to 2.5

ounces of cannabis, now is time for Ohio companies to revisit the employee handbook. Employers need to be prepared for more workplace injuries and accidents that come with more employees using cannabis. According to a study reported by the National Institute on Drug Abuse, employees who tested positive for marijuana had 55% more industrial accidents, 85% more injuries and 75% greater absenteeism compared to those who tested negative. Manufacturing and safety-sensitive jobs surely already have established protocols, but what about the knowledge worker or office staff? Fortunately, Issue 2 included employer protection language so there will be latitude for enforcement but the time to address it is now.

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

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Mentoring can shape the future of talent attraction, retention in Cleveland to be a role model for the female project Talent attraction and retention are top engineers working on the site. I see this concerns for business and civic leaders, as another opportunity to share my expenot just in Cleveland but globally. riences, knowledge, and hindsight to According to the 2023 Gartner CEO help the women in our company skyand Senior Business Executive Survey, rocket here and in the construction inCEOs worldwide consistently rank talent dustry. That is my biggest mission right among their top three concerns. For now. Cleveland, addressing these issues has But mentoring is not just a personal become a crucial mission, with initiapassion for me; it’s an investment in peotives like the recently launched Cleve- Keri Ash is a ple. It is linked to increased employee land Talent Alliance aiming to attract tal- senior project satisfaction, reduced burnout, and highent to the city’s high-growth sectors. executive at er employee retention rates. According to The recent release of Team NEO’s Gilbane research conducted by CNBC/Survey Aligning Opportunities report under- Building Co. Monkey, 71% of employees with mentors scores the pressing issue of the gap between available job opportunities in the region believe their opportunities for career advanceand the limited number of qualified workers to ment are either good or excellent, and an impressive 90% report being content with their jobs. fill these roles. These facts should motivate more employers to In addition to the skills gap, employers are grappling with the lingering effects of the implement mentoring programs, especially given the fact that nearly 50% of employees are actively COVID-19 pandemic on the workplace. While a hybrid work model has become com- seeking new job opportunities or, at the very monplace, many companies are announcing least, keeping an eye on the job market, accordtheir intention to return to an in-office format. ing to Gallup’s research on employee attraction This transition can create challenges for employ- and retention. And the Pew Research Center reees who are used to flexible work arrangements. ports that 55% of workers say they don’t have a Consequently, it’s no surprise that the ever-evolv- mentor. Finally, mentoring should extend beyond our ing workplace often leaves employees less than current workforce to include high school stuhighly satisfied with their jobs. While there isn’t a single solution to resolve the dents, college students, and entrepreneurs, helptalent challenges facing greater Cleveland, one ing build our talent pipeline in the skilled trades, thing that both companies and employees should construction management, and the subcontracleverage is mentoring. When I started in con- tor pool. This belief is why I serve on the board of struction more than 20 years ago, my journey was the ACE Mentor Program of Cleveland, which unconventional. I didn’t have someone to bounce guides high school students interested in careers ideas off of or to give me constructive feedback. I in architecture, construction, and engineering. A companion pilot program, ACE Transformaquickly learned that I’d have to advocate for myself and create my own opportunities for career tive Partners, extends the model to college students to help them succeed in college and conadvancement. Today, I have the privilege of mentoring young nect with yearly internships in the field. I also professionals, including women in the construc- participate in Gilbane’s Rising Contractors Protion industry who, like me, are forging their paths gram, counseling small business owners to help in a male-dominated sector. The women I’ve them grow their enterprises. I’ve witnessed the transformation that my mencoached are accomplished professionals with degrees from schools like Case Western Reserve tees experience — a deepening of knowledge, the University, specializing in engineering, architec- confidence to make decisions and lead, and a ture, or construction management. My goal is to sense of satisfaction working for a company that help them feel valued and supported, especially invests in them. It’s the kind of investment that with women making up only 10.9% of the con- every company should make in their employees as it serves as a catalyst for transforming jobs into struction workforce. For one of the projects I currently work on — careers, employees into leaders, workplaces into the new, two-tower apartment high rise in the communities, and cities like Cleveland into a desVan Aken district in Shaker Heights — I’m lever- tination for a diverse, vibrant, and skilled workaging my role as a woman on the leadership team force.

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Re-entry programs provide a vital job link Groups help to connect manufacturers and former inmates By Dan Shingler

The same pandemic that sent millions of Americans to work from home also created an opportunity for many others to go to work for the first time, as many new job openings went unfilled. Those who have been convicted of crimes or had other involvement with the criminal justice system, which would have prevented them from getting jobs or making them much more difficult to obtain previously, were getting hired. And it was manufacturers who were often leading the way, say those who have led efforts to employ potential workers with a criminal record. After all, manufacturing is one of those things you can’t do remotely, but during the pandemic many new openings were going unfilled. “There was a growing awareness this was an untapped pool of talent even before the pandemic,” said Jill Rizika, CEO of Towards Employment in Cleveland. “But with the pandemic and the labor-pool pressures it caused, a lot more employers have been looking at how they can enlarge their labor pool, especially manufacturers.” Towards Employment was already working with MAGNET, the chief manufacturing support and advocacy agency in the region, when COVID struck. They’d been working together since 2019. That’s when MAGNET formed its Access to Manufacturing Careers program to help the formerly incarcerated and other people with challenges in their backgrounds or circumstances to find work with area manufacturers who were starving for employees, said MAGNET’s director of sector partnership, Tom McGraw. Towards Employment works as MAGNET’s contractor to recruit participants and train them to work in manufacturing jobs. The training included teaching them skills that manufacturers said they needed, in areas such as metrology, shop math or the soft skills needed for dealing with customers, contractors and coworkers. The agency was all set to launch

Richard Jackson (from left), Mary Lamar and Casey Wright, graduates of Access to Manufacturing Careers, work at Talan Products. | MAGNET

its first cohort when the pandemic struck, “so we did a switch to do it all virtually,” Rizika said. That was a disappointment, but not really much of a setback. Towards Employment did much of its work online for the first two years of the program, but since 2022 has largely returned to in-person training and counseling, she said.

chine shops and others. Relliford had just served 10 years in federal prison when he started training with Access at the beginning of 2023. Relliford said he and other graduates had multiple job offers and described the day that 11 manufacturers came to interview graduating candidates as the equivalent of an NFL draft day. “That’s exactly what it was,” Relliford said. “I ended up doing maybe six interviews. I had three second (round) interviews and three offers. . . .I ended up choosing Jergens.” The work environment, benefits, and paid time off for vacation or in the event he got sick, were all selling points he said — but the choice was a tough one. “These companies were not BS companies. I passed on Lincoln Electric,” Relliford said. “It was all real companies with real careers.” Relliford said he came into the program a bit skeptical. A lot of times, people say they want to help but don’t deliver, he said, so he was prepared for that. But he was pleasantly surprised. “A lot of places, especially when they’re dealing with convicted felons, they look good on paper but they’re not really doing what they say they’re doing. But these guys? They’re for real,” he said of Towards

“There was a growing awareness this was an untapped pool of talent even before the pandemic.” — Jill Rizika, CEO of Towards Employment To date, the program has 220 graduates, representing an 80% completion rate, Rizika said. Twothirds of those have been placed in jobs and 70% are still in those jobs after 90 days, she reports. Those numbers aren’t perfect, but the work can be challenging. Towards Employment often not only trains its participants but helps them with housing, transportation and other items needed to manage their lives and be dependable as employees. Michael Relliford is a recent graduate of the Access program. He credits it with his success in finding his current job, which he said he loves, at Jergens, a big manufacturer of parts and fixtures used by ma-

Employment, Magnet and the manufacturers they work with. “I finished the program in February and had a job in March. It’s legit.” Now he’s an ambassador for the Access program, referring others to it from the halfway house where he lived and even to close family members, not to mention the media. “Whatever they need — I’m there,” Relliford said. “Because I’m very appreciative of the opportunities that were afforded to me. . . .I even referred my oldest daughter.” Many entry-level manufacturing jobs often have high turnover rates and hires from the Access to Manufacturing program often perform better than the hires that manufacturers make on their own. “I would say Access graduates come in at a very similar entry-level spot to other hires, but accelerate faster,” said Adam Snyder, chief operating officer at Talan Products, a metal stamping company on Cleveland’s East Side. That’s thanks to both the training and the support they get from Towards Employment, Snyder said, so even if they’ve never worked in manufacturing before, they have measurement skills and can read blueprints. “They come in with some foundational skills most folks don’t grow up with, like how to use a micrometer,” Snyder said. The Access program itself is an

exercise in discipline and a proving ground for potential new employees, Rizika said. “Folks who’ve spent time with us . . . it’s someone who’s been more vetted than anyone you’ll hire off the streets,” she said. Currently, 10 of the people who work at Talan’s 85-person shop went through the program, Snyder said, including his night-shift supervisor who graduated from Access in 2020. Others work in quality control and robotic welding at Talan. Talan also offers its new hires apprenticeships in running, maintaining and setting up its big presses. Snyder said he plans to offer two of those to Access graduates in January. He said his success with hiring from the program and what he’s seen from Rizika and her people have only made him more confident in the program. “I give Jill and her team a ton of credit. It’s a unique skillset in the workforce development space to be able to talk to employers and understand their needs,” Snyder said. Meanwhile, manufacturers’ interest in the Access program remains strong, McGaw said. To date, MAGNET has had between 25 and 30 manufacturers hire from the program, he said, but there are 18 participating in 2023 alone. Rizika is hoping this will be Towards Employment’s best year yet with the Access program. “Our goal this year is 90 placements,” she said. The work here has not gone unnoticed outside of Northeast Ohio, either. The Ohio Manufacturers’ Association won a $23.5 million federal grant in 2022 to put toward training and preparing people of all sorts for jobs in manufacturing. MAGNET worked with the OMA on a re-entry component of that, and the OMA has been taking the Access model statewide as a result. “Now, 15 other markets in Ohio are running a similar program as this,” McGaw said. Rizika thinks the more people who hire people with criminal records and succeed with them, the more her program and others will succeed. She already sees attitudes changing, she said. “We see employers bringing more flexibility and looking for more ways to say yes instead of just ways to say no,” Rizika said.

Clinic, Canon to establish comprehensive imaging research center By Paige Bennett

Cleveland Clinic and Japan-based Canon Inc. plan to establish a comprehensive imaging research center based in the Cleveland Innovation District. The research center will potentially include shared workspace in an existing building in Cleveland’s Fairfax neighborhood, according to a news release issued Nov. 27 by the Clinic. It comes as part of a new strategic partnership between the Clinic and Canon Inc. that aims to devel-

op innovative imaging and health care IT technologies to improve patient outcomes, diagnosis and care. The partnership will involve a cross-institutional team of clinician-scientists, researchers and engineers, working to create sophisticated imaging technologies. The collaborative research will center on cardiology, neurology and musculoskeletal medicine. Each project will have three major components: pre-clinical imaging, human imaging and image analysis. The partnership will for local and global research collaborations,

the news release says. “If you look at what our principle is and what Canon’s principle is, we’re dedicated to improving patient care and the well-being of people globally,” said Dr. Geoff Vince, executive director of Cleveland Clinic Innovations, in an interview with Crain’s. “What this really allows us to do is really leverage the strengths of both organizations to deliver on that promise.” Tsuneo “Neo” Imai, vice president of strategic partnership and collaboration at Canon Healthcare U.S.A. Inc., said clinical research is

key to understanding the needs of the market. The partnership will foster collaboration between researchers from both organizations by bringing them together in an in-person setting, he said. “This unique collaboration leverages Cleveland Clinic’s expertise in biomedical research and clinical care with Canon’s global leadership in imaging innovation and precision manufacturing,” said Dr. Tom Mihaljevic, president and CEO of the Clinic, in a statement. “By combining our strengths, we aim to create breakthroughs in im-

aging and work together to rapidly translate these innovations to improve patient care.” The Cleveland Innovation District is a $500 million public-private partnership between the state of Ohio, JobsOhio and Cleveland’s health care and higher education institutions that looks to expand research and create jobs. The potential collaboration within the Cleveland Innovation District helped attract Canon Inc. to the city when it established Canon Healthcare USA Inc., the company’s U.S. health care subsidiary, earlier this year.

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JumpStart selects MetroHealth veteran as its next CEO By Jeremy Nobile

JumpStart Inc. has named Julie Jacono, a veteran official with The MetroHealth System who has helped commercialize tech innovations there, as its second-ever CEO. Jacono has held a variety of roles at MetroHealth since joining it in 2012. Since January 2020, she has served as the organization’s chief strategy and innovation officer. Jacono will begin her onboarding process at JumpStart at the end of December. “I am grateful to the board for giving me this opportunity to lead the talented team at JumpStart,” she said. In her new role, Jacono succeeds JumpStart founding CEO Ray Leach, who had led the nonprofit since 2004. “As JumpStart enters its 20th year, I look forward to working with the board and team and engaging the many partners of JumpStart to build on past successes and identify future opportunities. Among the reasons I pursued this opportunity are JumpStart’s dedication to reaching into all communities and supporting diverse entrepreneurs and its commitment to equity, diversity and inclusion,” Jacono said. She added, “As a lifelong Clevelander, I know that Northeast Ohio has amazing institutions and a long

history of innovation. I look forward to combining the power of JumpStart with all our assets to drive an economic future that lifts all through radical collaboration.” Jacono’s work at MetroHealth includes forming and raising capital for three startup companies focused on new health care models. She also participated in Harvard Business School’s advanced management program and was named a “Notable in Jacono Health Care” by Crain’s Cleveland Business in 2021. Both her bachelor’s degree in biomedical engineering and MBA are from Case Western Reserve University. Jeanne Coughlin, chair of JumpStart’s board of directors, described Jacono as an “inspirational leader with a proven ability to innovate and transform organizations.” “She has built her career around a passion for improving lives and nurturing purpose-driven cultures,” Coughlin said. “Her deep experience in health care, a critical industry in Northeast Ohio, will introduce a fresh viewpoint to JumpStart. This perspective will be instrumental in identifying novel opportunities, driving innovation and ensuring that JumpStart re-

mains at the forefront of both local and national advancements.” Jacono’s hiring completes a national search for Leach’s successor that was led by executive search firm Russell Reynolds Associates. More than 275 individuals were evaluated for the job, according to JumpStart, including some internal candidates. “Julie embodies the three core attributes JumpStart prioritized in its search: fundraising experience, experience in venture capital, and an innate ability to build relationships, bridging diverse teams and visions,” said Cindy Torres Essell, chair of JumpStart’s CEO transition committee. “JumpStart is a complex organization, and we are delighted to welcome a proven local leader with demonstrated expertise in leading strategy and diverse teams.” The CEO search started in the spring in anticipation of Leach stepping down at the end of September. At that time, Richard “Duke” Jankura — a former chief financial officer for JumpStart who was named a “CFO of the Year” by Crain’s Cleveland Business in 2011 — was appointed as the organization’s interim CEO. Jankura will continue serving in a consulting role as needed during the CEO transition.

As for Leach, his departure comes as he dedicates himself to standing up The Ohio Fund, a private venture investment vehicle with an inaugural fundraising target of $500 million. Officials are not permitted to discuss the Ohio Fund amid fundraising due to solicitation rules. However, in investor materials, the Ohio Fund has been described as an impact fund inspired by Singapore’s Temasek, which has grown into a global investment company since its founding in 1974 with $382 billion in total assets under management. Leach, who has been working on that endeavor in conjunction with Drive Capital cofounder Mark Kvamme, will manage the Ohio Fund’s day-to-day operations as it comes together. “As founding CEO of JumpStart, I’ve been privileged to lead the organization for the past 19 years,” Leach told Crain’s in June. “I’m grateful to the board, our community partners and our funders for their support in helping me and our team build JumpStart into what it is today: a nationally recognized venture development success that has built public, private and philanthropic partnerships to create significant impact throughout the region. Since 2010, the startups and small businesses served by JumpStart and its partners

have generated more than $11.6 billion in economic impact by creating jobs and generating tax revenues.” JumpStart formed in 2003 to “address Northeast Ohio’s declining economy, loss of jobs and lack of entrepreneurial growth,” according to Case Western Reserve University’s Encyclopedia of Cleveland History. But its work as a venture development organization and small-business support system, fueled by a mix of public and private funding sources, really began in 2004 with the installation of Leach as its first CEO. The outfit has grown significantly in size and scope since then. Its venture investing arm, JumpStart Ventures, which backs startups at pre-seed, seed and Series A funding rounds, touts investments totaling nearly $68 million across 138 portfolio companies. One of its marquee exits came with the $1.1 billion acquisition of Columbus’ CoverMyMeds by pharmaceutical juggernaut McKesson Corp. in 2017. At JumpStart, Leach was awarded total compensation of $522,200 in the organization’s 2022 fiscal year on a base salary of $331,798, according to the organization’s most recent Form 990. JumpStart declined to share Jacono’s starting salary.

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Nonprofit director tapped as West Side Market leader Rosemary Mudry, the current executive director at West Park Kamm’s Neighborhood Development, plans to leave the organization to assume the leadership role at Cleveland Public Market Corporation, according to a Nov. 27 announcement. Mudry, who served for four years at WPKND, was named to lead the nonprofit currently in talks with the city of Cleveland to run the 111-year-old West Side Market. She will take over management of the market from senior strategist Jessica Trivisonno, who is handling the transition for Mayor Justin Bibb’s administration. Mudry’s start date with CPMC is Jan. 3. Trivisonno plans to leave the West Side Market sometime in March. “The Board of Directors extends its sincere gratitude to Rosemary Mudry for her outstanding service and leadership at West Park Kamm’s Neighborhood Development. We congratulate her on her new role and are confident that she will continue to make a positive impact on one of Cleveland’s most iconic institutions, the West Side Market,” said Susan Blankenship, WPKND board president, in a statement.

CONTRIBUTED

By Kim Palmer

The West Side Market is home to more than 60 small, local business owners and has more than 800,000 visitors annually. The market’s vendors have complained that, under previous administrations, the building fell into disrepair and the city’s management was unresponsive and inflexible.

a 10-year contract with CPMC. City Council also allocated $10 million of American Rescue Plan Act funding in May for capital improvements that are estimated to cost approximately $49 million. CPMC will be tasked with finding additional federal and state funding, grants and loans.

In early 2023, a master plan created by the consulting firm Market Ventures Inc. echoed suggestions that the West Side Market should transition to a nonprofit management model to improve the vendor and visitor experience. Cleveland City Council recently voted to allow the city to negotiate

During her four years with WPKND, Mudry worked on the community’s Old Lorain Connector, improved the Senior Home Repair Program and secured five years of after-school programs at Clara E. Westropp School of Arts, according to the announcement. David Abbott, president of CPMC board, chaired the Search Committee the national executive firm that conducted the nationwide search, said he is thrilled to welcome Mudry. “Her strategic mindset and passion for the Market make her an ideal leader to deliver on the West Side Market’s potential. We are confident that under her guidance, CPMC will make tremendous progress towards our goal of making the West Side Market the nation’s premier public market,” Abbott said. Don Whitaker, president of the United West Side Market Tenants Association was also in favor of Mudry’s selection. “I’ve been impressed by Rosemary’s energy and excitement about the job and her commitment to working closely with merchants,” said Whitaker. Joe Dill, WPKND director of neighborhood development, will assume the responsibilities of the executive director position as the group searches for a new leader.

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Land for much-disputed Menards in Medina County sells for $13M Citizens group unsuccessfully fought project in court By Stan Bullard

In a quiet footnote to a hornet’s nest of a dispute over a new store, Menards of Eau Claire, Wisconsin, has acquired more than 330 acres for a store and related development in Medina County’s Granger Township. Including a $500,000 deal for a 1-acre site on the north side of state Route 18, the family-owned retailer for lumber, building products and other wares shelled out a total of $13 million to four property owners. Sellers were a mix of individuals and corporations, for the mixture of farmland and houses. The sales were recorded between Nov. 3 and Nov. 9, according to Medina land records. The site sits on the west side of Medina Line Road and borders Bath Township and has been a veritable realty battleground since the project was initially proposed in 2019. Initially, Menards won approval after acrimonious disputes at Granger Township Trustees

meetings. Calling itself The Citizen Action Group, a citizens group, fought unsuccessful court cases in Medina County Court of Common Pleas, an appellate court, and went all the way to the Ohio Supreme Court. The Citizens Action Group pressed the issue by arguing the township’s approval violated technical aspects of the township’s code. One of the 500-some signers on the group’s GoFundMe page said, “I don’t want an urban wasteland.” The state’s highest court declined to hear the matter on Jan. 17, 2023, according to court records. The move set the sales in motion. Richard Pace, a township trustee, said in an email that the township had heard nothing from the retailer for months. However, for Menards to proceed, it needs to secure approval from the township’s Board of Zoning Appeals for the placement of the store on the site. That would clear the way for securing a build-

Menards, which sells lumber, building products and other wares, may begin construction of its first store in Medina County. | BLOOMBERG

ing permit from Medina County to unleash construction crews. A posting about the project on the Construction Journal website estimated the project would cost $40 million to develop. Beyond the 20 acres required for the store, the remainder of the site may be developed for other retail uses.

Jeffrey Abbott, Menards spokesperson, said in an email that no specific data on the Granger Township project is available. The company develops additional properties next to its stores when land is available, he said. Menards currently has seven stores in Northeast Ohio. Its

Cuyahoga Falls store is the closest to the proposed Granger Township store. The Cuyahoga Falls store was also the first it opened in the region in 2018. The retailer, which has a total of more than 300 stores, has 45,000 employees, according to the company’s website.

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Suburb eyes zoning change to boost Great Northern Mall By Michelle Jarboe

The city of North Olmsted plans to tweak its zoning code to make it easier to transform Great Northern Mall into something more than a regional shopping center. Officials in the western suburb are taking a proactive approach to a widespread problem: Enclosed malls across the country are struggling, and only the strongest properties will survive. Great Northern, which opened in 1976, has outlived many of its peers in the region, and it has hung onto critical anchors including Dillard’s, Macy’s and JCPenney. But new operators took over the mall a few years ago, after a debt default, and a loan maturity looms in 2025. North Olmsted aims to create a mixed-use zoning overlay — the city’s first such land-use tool — to apply to the mall and the neighboring Great Northern Plaza shopping center. The idea is to make the properties more attractive to prospective investors by reducing city bureaucracy and expanding the menu of redevelopment options for the sites. “The days of just going and walking around an insular mall, they’re not what they used to be,” said Max Upton, the city’s director of economic and community development. “I think a mix of uses — office, retail, restaurants, apartments — I think all of that is in play,” he added. “And I think all of that, put together in the right way, would ensure that that place is viable for another generation of North Olmsted residents.” The city is in the early stages of its zoning discussions. Legislation to create the zoning overlay could be introduced during the first half of 2024, Upton said. If North Olmsted City Council signs off, officials then will layer the new regulatory framework on top of the mall’s existing zoning.

The city of North Olmsted sees a mixed-use future for Great Northern Mall, a regional retail destination that opened in 1976. | PACIFIC RETAIL

by more than 5,000 parking spaces. Those requirements are outdated, said Upton, who spent part of Black Friday — the day after Thanksgiving and, traditionally, the busiest shopping day of the year — driving up and down nearby Lorain Road with his 6-year-old and taking pictures of empty parking lots. “There are hundreds upon hundreds upon hundreds of empty parking spots all through and around the mall complex,” he said. Across Northeast Ohio, developers are replacing or rethinking malls. In Akron, Euclid and North Randall, massive Amazon fulfillment centers occupy former mall sites. In Elyria, the Lorain County Port Authority is weighing redevelopment proposals for the largely vacant Midway Mall, which the agency acquired early this year. And in September, demolition started at Richmond Town Square in Richmond Heights. That property is morphing into a mixed-use project called Belle Oaks Marketplace, with a roster of new retailers, self-storage and apartments. Unlike those malls, Great Northern isn’t dead or dying. Online marketing materials indicate that the property is roughly 90% leased. In September, the mall announced that Kids Empire has inked a deal to open a 14,800-square-foot indoor playground in the spring. Still, city officials are concerned. Upton cited the loss of Sears, which closed in 2020, and Regal Cinemas, which shuttered its Great Northern multiplex in January. “Over the past couple of years, it’s been some repeated body blows . . . none of which we can control,” he said. Zoning, on the other hand, is

something the city does control. Mayor Nicole Dailey Jones said that North Olmsted’s identity is indelibly tied to the mall. The city has a chance to lay the groundwork for evolution now, rather than waiting until a pivotal property is distressed. “I don’t want to get caught flat-footed,” she said. “I don’t want to get caught in a situation like so many other communities have found themselves in. . . .We’re very lucky that we’re still in a position that we do have an active mall,

where the ownership group is actively trying to make sure that they’re working to find new businesses to locate there.” The city is working with Cleveland-based City Architecture on the overlay zoning project. The initiative builds on a recently completed planning study of Lorain Road, which runs just north of the mall, and comes as North Olmsted is developing a new comprehensive master plan. Questions about Great Northern’s future came up frequently at

public meetings during the Lorain Road planning process, city officials said. “I’m not just worried about what happens in the next five years. I’m really looking at 20 years from now, what will that space look like?” Jones said, adding that the zoning conversation will include many groups and voices. Dan Crandall, the mall’s marketing and business development manager, said he was not aware of the zoning overlay proposal. He described the idea as “exciting” but otherwise referred questions to Pacific Retail Capital Partners, the mall’s Los Angeles-based operator. Through a partnership with Golden East Investors of New York, Pacific Retail took control of the mall in September 2020. That’s when Chicago-based Starwood Retail Partners lost its grip on Great Northern and six other properties in the wake of a debt default. The former Starwood portfolio also includes Belden Village Mall outside Canton. Pacific Retail has experience with repositioning troubled malls through master planning, renovations and the addition of new uses, including housing, green spaces and public art. The company did not immediately respond to emailed questions from Crain’s. But Upton doesn’t expect Great Northern’s operators to push back on the zoning overlay. “They’re not openly against it,” he said. “I don’t know that they’re going to cheerlead any of those efforts. But they’re not hostile.”

“The days of just going and walking around an insular mall, they’re not what they used to be.” — Max Upton, North Olmsted’s director of economic and community development The overlay won’t impact tenants or force any changes in use at the mall or nearby plaza. Instead, it will provide more flexibility to the property’s current and future owners while sending a message about the types of development that North Olmsted wants to see. The 1.2 million-square-foot mall sits in a general business zoning district. That zoning classification doesn’t allow residential uses, aside from group homes, nursing homes and continuing care facilities. And the city’s code mandates a substantial amount of parking. Great Northern is surrounded

DECEMBER 4, 2023 | CRAIN’S CLEVELAND BUSINESS | 13

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CRAIN'S LIST | HOSPITALS Ranked by 2022 net patient revenue NET PATIENT REVENUE (MILLIONS)

FTE STAFF STAFFED % CHANGE 9-1-2023 BEDS

YEAR FOUNDED PARENT ORGANIZATION

2022

2021

$6,378.8

$6,037.2

5.7%

37,832

1,290

1921

Cleveland Clinic Health Tomislav Mihaljevic, president, CEO System

HOSPITALS CLEVELAND MEDICAL CENTER 2 UNIVERSITY 11100 Euclid Ave., Cleveland 44106

$3,233.9

$3,157.4

2.4%

18,633

999

1866

University Hospitals

Stathis Antoniades, president, UH Cleveland Medical Center; Cliff Megerian, CEO, University Hospitals

NORTHEAST OHIO HEALTHCARE SYSTEM 3 VA 10701 East Blvd., Cleveland 44106

$1,559.7

$1,328.1

17.4%

6,084

617

1946

Department of Veterans Affairs

Jill Dietrich Mellon, executive director, CEO

MAIN CAMPUS MEDICAL CENTER 4 METROHEALTH 2500 MetroHealth Drive, Cleveland 44109

$1,160.7

$1,198.4

-3.1%

7,615

451

1837

The MetroHealth System

Airica Steed, president, CEO

HEALTH SYSTEM - AKRON, ST. THOMAS AND BARBERTON 5 SUMMA CAMPUSES

$1,004.7

$1,034.0

-2.8%

5,881

967

1892

Summa Health System

Cliff Deveny, president, CEO, Summa Health System

CHILDREN'S HOSPITAL 6 AKRON One Perkins Square, Akron 44308

$921.9

$978.7

-5.8%

—

440

1890

Children's Hospital Medical Center of Akron

Christopher Gessner, president, CEO

CLINIC AKRON GENERAL HOSPITAL 7 CLEVELAND One Akron General Ave., Akron 44307

$787.4

$779.6

4,397

485

1914

Cleveland Clinic Health Brian Harte, president System

CLINIC FAIRVIEW HOSPITAL 8 CLEVELAND 18101 Lorain Ave., Cleveland 44111

$592.5

$591.8

0.1%

2,550

498

1892

Cleveland Clinic Health Neil Smith, president System

HOSPITAL 9 AULTMAN 2600 Sixth St. S.W., Canton 44710

$567.4

$495.9

14.4%

2,826

439

1892

Aultman Health Foundation

CLINIC HILLCREST HOSPITAL 10 CLEVELAND 6780 Mayfield Road, Mayfield Heights 44124

$547.7

$528.7

3.6%

2,507

462

1968

Cleveland Clinic Health Richard Parker, president System

HEALTH - ST. ELIZABETH YOUNGSTOWN HOSPITAL 11 MERCY 1044 Belmont Ave., Youngstown 44501

$461.6

$463.3

-0.4%

—

514

1911

Bon Secours Mercy Health

Kathy Harley, president, Mercy Health - St. Elizabeth Youngstown Hospital

GENERAL 12 SOUTHWEST 18697 Bagley Road, Middleburg Heights 44130

$420.9

$425.7

-1.1%

1,774

236

1920

Southwest General, partnering with University Hospitals

William Young Jr., president, CEO

CLINIC MERCY HOSPITAL 13 CLEVELAND 1320 Mercy Drive N.W., Canton 44708

$353.2

$368.2

-4.1%

2,092

323

1908

Cleveland Clinic Health Timothy Crone, president System

LAKE HEALTH - TRIPOINT AND LAKE WEST MEDICAL CENTER 14 UH 3600 Euclid Ave., Willoughby 44094

$342.4

$267.9 1

27.8%

1,822

402

1961

University Hospitals

Robyn Strosaker, president and COO, UH Lake Health Medical Centers

HEALTH - ST. ELIZABETH BOARDMAN HOSPITAL 15 MERCY 8401 Market St., Boardman 44512

$267.3

$271.1

-1.4%

—

233

2007

Bon Secours Mercy Health

Eugenia Aubel, president, Mercy Health - St. Elizabeth Boardman Hospital

REGIONAL MEDICAL CENTER 16 FIRELANDS 1111 Hayes Ave., Sandusky 44870

$261.6

$275.9

-5.2%

—

287

1876

Firelands Health

Jeremy Normington-Slay, president, CEO

HOSPITALS AHUJA MEDICAL CENTER 17 UNIVERSITY 3999 Richmond Road, Beachwood 44122

$249.4

$246.5

1.2%

1,024

144

2010

University Hospitals

Percival Kane, COO, UH Ahuja Medical Center; Alan Papa, COO, East Market

HOSPITALS ST. JOHN MEDICAL CENTER 18 UNIVERSITY 29000 Center Ridge Road, Westlake 44145

$210.9

$188.1

12.1%

882

1981

University Hospitals

Jonathan Sague, COO, UH St. John Medical Center

HOSPITALS ELYRIA MEDICAL CENTER 19 UNIVERSITY 630 E. River St., Elyria 44035

$206.2

$214.4

-3.8%

987

229

1908

University Hospitals

Todd Harford, COO, UH Elyria Medical Center

HEALTH - LORAIN HOSPITAL 20 MERCY 3700 Kolbe Road, Lorain 44053

$204.0

$206.2

-1.1%

—

279

1892

Bon Secours Mercy Health

Gil Palmer, president, Mercy Health - Lorain Hospital; John Luellen, Lorain market president

HEALTH - ST. JOSEPH WARREN HOSPITAL 21 MERCY 667 Eastland Ave. S.W., Warren 44484

$194.2

$201.1

-3.4%

—

169

1924

Bon Secours Mercy Health

Charlotte Gardiner, president, Mercy Health St. Joseph Warren Hospital

HOSPITALS PARMA MEDICAL CENTER 22 UNIVERSITY 7007 Powers Blvd., Parma 44129

$190.3

$182.2

4.4%

1,026

195

1961

University Hospitals

James Hill, MD, COO

CLINIC AVON HOSPITAL 23 CLEVELAND 33300 Cleveland Clinic Blvd., Avon 44011

$178.7

$166.2

7.5%

717

126

2016

Cleveland Clinic Health Rebecca Starck, president System

HOSPITALS GEAUGA MEDICAL CENTER 24 UNIVERSITY 13207 Ravenna Road, Chardon 44024

$175.5

$169.7

3.4%

755

133

1952

University Hospitals

Jason Glowczewski, COO, UH Geauga Medical Center

CLINIC ORTHOPAEDIC CENTER 25 CRYSTAL 3557 Embassy Parkway, Akron 44333

$173.3

$163.5

784

2009

—

Daniel Ferry, president, CEO

RANK

HOSPITAL

CLEVELAND CLINIC - MAIN CAMPUS 9500 Euclid Ave., Cleveland 44195 216-444-2200/clevelandclinic.org

216-844-1000/uhhospitals.org

216-791-3800/va.gov/northeast-ohio-health-care

216-778-7800/metrohealth.org

141 N. Forge St., Akron 44304 330-375-3000/summahealth.org

330-543-1000/akronchildrens.org

330-344-6000/akrongeneral.org

216-476-7000/fairviewhospital.org

330-452-9911/aultman.org

440-312-4500/hillcresthospital.org

330-746-7211/mercy.com

440-816-8000/swgeneral.com

330-489-1000/cantonmercy.org

440-953-9600/lakehealth.org

330-729-2929/mercy.com

TOP EXECUTIVE

Anne Gunther, COO

419-557-7400/firelands.com

216-593-5500/uhahuja.org

440-835-8000/uhstjohn.org

440-329-7500/uhelyria.org

440-960-4000/mercy.com

330-841-4000/mercy.com

440-743-3000/uhparma.org

440-695-5000/my.clevelandclinic.org/locations/avon-hospital

440-285-6000/uhgeauga.org

330-668-4040/crystalclinic.com

Revenue and employment figures often include outpatient clinics and other offsite locations affiliated with the hospital. Some hospitals submit combined data for multiple facilities because that's how they report data to the federal government. Information is from the hospitals unless footnoted. NOTES: 1. This figure includes only revenue generated after Lake Health joined UH on April 16, 2021. 2. Financial information from Modern Healthcare, modernhealthcare.com, which relies on Medicare Cost Report data.

14 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 4, 2023

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Residential realty firm Vylla Home looks to set up shop in the region By Stan Bullard

The home market may be suffering from too little inventory, but the supply of residential brokerages in Northeast Ohio is continuing to grow, with Vylla Home, the residential brokerage unit of national home loan provider Carrington Mortgage Services of Anaheim, California, looking to hang its shingle in the region. Vylla may join two other new names that have recently opened new operations here, The Agency and Engel & Volkers. Vylla said it is looking to recruit a broker with his or her own multiple-agent team to launch operations here. It already operates in Columbus. Chad Ruggles, senior vice president of Vylla Home, said in a video interview that Carrington Mortgage Services provides brokerage services as part of a plan to make it easier for its clients to complete a home purchase because it offers financing, brokerage and title services under one company. If the idea of an umbrella company providing a suite of different real estate services sounds familiar, it should. Howard Hanna Real Estate Services of Pittsburgh started as a home brokerage but added title and mortgage broker services over time.

this has value where providing an agent with forms and comps (sale prices) is pretty standard.” Ideally, Ruggles said, Vylla hopes to enlist an agent with his or her own team of agents to join the company. The brokers may already have their own team office, he said. However, he added that Vylla is a hybrid company and accepts the idea of people working from home in the residential realty business. Ruggles said he knows the Cleveland and Akron area because

he supervised loan offices when he was previously with Citigroup. “We know good brokers have business on both sides of town,” Ruggles said, so it doesn’t matter whether they are located on the east, west or south sides. Vylla sought to add a brokerage here because of the Cleveland and Akron residential market’s size and proximity to Vylla’s existing Columbus office. David Sharkey, president and broker for Progressive Urban Real

Estate in Ohio City, said he doesn’t believe adding another brokerage to town will mean much change for the industry. “There’s a place for small brokerages,” Sharkey said, “and there is a place for large brokerages. What makes the difference is how much supervision agents have when they need the assistance of a manager. That’s what makes the difference in how a brokerage or agent Ruggles succeeds.” The recent market slowdown due to lack of inventory and the run-up of interest rates is not prompting agents to be more open to switching brokerage houses, he

said. That is a big difference between residential and commercial brokerages as commercial brokers switch ships when markets soften. “This is a softer residential market, not a bad one,” Sharkey said. “The market has done nothing but go up since 2011 until last year. You have to work harder for business now than when the market was providing lots of deals.” Carrington Mortgage Services was launched in 2003, Ruggles said, and the residential brokerage was launched in 2008. Vylla has real estate operations in 40 states and uses 1,300 agents, he said.

HEALTHCARE IS ABOUT MORE THAN MEDICINE. It’s about hope, equity, and a healthier community.

“This is a softer residential market, not a bad one.” — David Sharkey, president and broker for Progressive Urban Real Estate Until the rapid spike in interest rates last year made finding mortgages more difficult, several residential brokerages were adding mortgage service platforms. As a national mortgage provider, Carrington already has clients with home loans in Northeast Ohio, although he was not able to immediately quantify the firm’s presence here. Carrington clients may receive a credit or discount when they buy a second home through Vylla, he said. The size of the credit varies with the size and duration of the loan. It’s of particular value when a Carrington client decides to seek another place or a move-up house. The opportunity to obtain Carrington clients for home sales can be a valuable source of business, Ruggles said, as experienced agents look for ways to distinguish themselves or their teams. “Real estate agents need additional service from their brokerages,” Ruggles said, “and

Dr. Airica Steed, President & CEO MetroHealth

At MetroHealth, we believe every person in our community deserves access to high-quality care. With vision and innovation, our President and CEO, Dr. Airica Steed—alongside the more than 8,000 dedicated providers, specialists, nurses, and staff who call MetroHealth home—will shape a future dedicated to a healthier community.

metrohealth.org

DECEMBER 4, 2023 | CRAIN’S CLEVELAND BUSINESS | 15

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A geometric sculpture in DION Art’s downtown Cleveland showroom carries the company’s name and tagline. The perforated metal polyhedron is similar to one that sits in front of 55 Public Square a few blocks away.

A rendering shows a proposed DION Art sculpture that will be part of a broader downtown lighting initiative led by Destination Cleveland. | DESTINATION

| PHOTOS BY GUS CHAN

CLEVELAND/DION ART

DION From Page 1

“This is emblematic of the immigrant community,” said Joe Cimperman, president and CEO of Global Cleveland, a nonprofit focused on growing the region’s prosperity by welcoming newcomers from across the globe. “Creating jobs. Fully participating in advancing our economy. Taking a role in Cleveland that puts us even more on the map.” Ilya Palatnik, the company’s U.S. CEO, emigrated here from Russia as a child in 1989. His family arrived in Northeast Ohio as part of an influx of Soviet Jewish refugees to the region. His mother worked in electronics and engineering. Palatnik’s father is an artist, a former shipbuilder and sculptor who still makes custom walking canes in Chesterland. Palatnik started out selling computer parts but eventually built a successful career in the mortgage industry. DION fuels the other side of his brain. “It was something more interesting than real estate and finance,” he said. “Something a little more creative.” Igor Velykyy, DION’s chief technical officer, landed in Cleveland in October 2022. He and his family fled Kyiv with help from Palatnik, a former relative by marriage. The family is among an estimated 7,000 Ukrainian refugees who have made their way to Northeast Ohio over the last 21 months, since Russia invaded their country and escalated a nearly decade-old conflict. The duo debuted their sky fountains concept in Ukraine in 2014 and later launched DION Art as the broader parent company. Velykyy still serves as CEO of the Ukrainian division, which has about 30 employees – down from more than 70 before the Russian occupation. 16 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 4, 2023

Colorful tiles surround a waterfall feature inside the showroom. The company is talking to officials at the Huntington Convention Center of Cleveland about a similar project.

A kinetic light display called a sky fountain hangs in the showroom. The laser-cut metal fixtures move into patterns and create distinct shapes, following a program designed by overseas software engineers.

Now the partners, who communicate in Russian, aim to rebuild in America. They see a niche for their luxury light displays and distinctive artwork in coastal markets, including Miami, New York and Los Angeles. They’re targeting hotel lobbies, office buildings and high-end homes. But, first, they’re hoping to generate some buzz in Cleveland. Their first local sculpture, a perforated polyhedron, popped up in front of the 55 Public Square building earlier this year. It serves as both eye-catching art and a monument sign for the apartment-and-office tower. “Cleveland’s our home, so we want to make sure that we have a presence here and we add to the city,” Palatnik said. “I think this kind of stuff is what Cleveland needs. We have plenty of development here. We have nothing cool and fun.” In DION’s downtown showroom, a brightly tiled waterfall runs along one wall. A metal tree crowned with translucent pink blooms rises from the basin of an empty fountain. Those flowers were produced by the Glass Bubble Project in nearby Ohio City. The sky fountain is the real showstopper. Ninety-one patterned fixtures – small polyhedrons made from laser-cut, iodized copper – hang from the ceiling. They’re equally spaced in rows and suspended in front of mirrors that create the illusion of infinite depth. And they glow from within, thanks to color-changing LEDs. Suddenly, the installation begins to move. It undulates with a soft, swishing sound. The pendants form waves, then abstract patterns, then distinct shapes. “I could go there and just relax,” said Travis Poppell, the director of sales and marketing for the Huntington Convention Center of Cleveland.

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HOUSE “As Clevelanders, we are proud of all things Cleveland, and the Christmas Story House is about as big as it gets,” he said. “What an awesome opportunity to get to represent something that’s so Cleveland.” Jones bought the original house sight-unseen for $150,000 in 2004. The company has expanded and now spans five buildings across seven properties. Jones estimates more than 1 million people have visited the house, with about 80,000 touring each year. The sale includes “not only a treasured piece of Americana but also a profitable e-commerce, manufacturing and hospitality business,” according to the company’s website. “It’s the house, the neighboring Bumpus House, the museum, the gift shop, the online retail business and a warehouse.” Asked why he decided to sell now, Jones put it simply: “It’s been 20 years. It gets exhausting after a while.”

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“This is emblematic of the immigrant community. Creating jobs. Fully participating in advancing our economy. Taking a role in Cleveland that puts us even more on the map.” — Joe Cimperman, president and CEO of Global Cleveland The team at the convention center considered putting one of DION’s sky fountains in the airy atrium of the former Global Center for Health Innovation, the above-ground office building that is being renovated as an extension of the largely subterranean meeting space. “Unfortunately, we had already done our budget and didn’t have any room left … to do the lighting,” Poppell said. “But what they showed us was fantastic.” The $49 million construction project is well under way and scheduled to wrap up in late June. Convention center officials are talking to DION about creating a signature waterfall for one of the building’s walls, a project that would be much less costly and simpler to install. “Once we all kind of came out of our trance from watching the balls and lights and stuff, it was like, ‘Well, we can’t afford the Mercedes. But tell us about this water feature,’” Poppell said. Palatnik said DION’s least expensive piece might cost $30,000 or $40,000. The company’s most expensive project, at $3.2 million, was a 350-foot-long fountain in Ukraine with elaborate lighting and jumping water. The sky fountains cost about $2,000 per fixture, though the price can vary depending on the materials involved, the height of the space and the behind-thescenes software. “These things can be very elaborate and something that, I think, really turns heads and gets people talking,” said James Fiore, the company’s chief branding officer. “It’s a really unique concept. Even

though it’s simple, it’s not. The programming’s tricky.” That programming takes place in Ukraine, where DION employs a group of engineers. In mid-November, the Cleveland City Planning Commission approved the installation of a new DION sculpture downtown. It’s a 10-foot-tall, 5-foot-wide metal polyhedron designed as a statement piece and wayfinding landmark for Destination Cleveland, the local visitors’ bureau. The piece will perch just east of Key Tower, at West Mall Drive and Rockwell Avenue. It will be visible from St. Clair Avenue when visitors exit the convention center complex. From that spot, there’s not a clear sightline to Public Square in the heart of the central business district. But “you could say ‘walk toward the polygon and make a right, and then you’re at Public Square,’”

EXECUTIVE RECRUITER POSITION AVAILABLE Ilya Palatnik, DION Art CEO

said Hannah Belsito, Destination Cleveland’s chief experience officer. The sculpture will have “Cleveland” cut into its upper faces in several different fonts. The lower half of the piece will feature geometric cut-outs. Lit from the inside with LEDs, it will cast colorful patterns across the surrounding sidewalk at night. The installation is part of Destination Cleveland’s broader, $7 million effort to illuminate public spaces downtown. The initiative, an attempt to encourage more evening foot traffic, will include other lighting and artwork around Public Square and the convention center. DION is only one of the participating companies. Belsito described them as creative, patient and responsive. “Ilya calls me probably every couple of weeks with a new idea, which I love about him,” she said. Cimperman, of Global Cleveland, said Ukrainian immigrants bring a high level of cultural sophistication and education to the community. Their skills, in areas including design, computer programming, architecture and engineering, can be huge assets to businesses and the region. “It makes sense that this company could find itself here in Cleveland and thrive,” he said, noting Northeast Ohio’s strong support for the Ukrainian people. “And it could be the trailblazer for others. … It’s kind of a quintessential Cleveland story with the potential to create a lot of economic benefits, even for people who probably couldn’t find Ukraine on a map.”

From Page 6

3. Unit cost of health care: Do you understand your costs? Next year will continue to see significant hospital consolidation. About 30 years of data tells us that this does not end well for the consumer and causes health care costs to inflate. One study showed that the price that private insurance paid for the average hospital stay increased in most areas between 11% and 54% in the years after a consolidation. So, what should HR teams do? Start with knowledge. Unit cost is the least under-

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From Page 1

Jones initially planned to sell the company to an outside buyer. Hundreds of people showed interest, he said, with offers reaching as much as $15 million. However, he ultimately decided to keep the sale in-house to ensure that the next owner’s vision for the property was in line with his own. “With this setup, there won’t be any changes,” he said. “I think everything will operate as it always has been. A Christmas Story House will remain the beloved attraction destination that fans have always come to.” Added Dickerson: “If I can do half as good a job as Brian has done over the years, I’ll be alright.” stood by employers trying to control claim costs because the data to calculate it is rarely provided in a usable form, and the information has at times even been obfuscated by carriers. The answer is to get access to data, reprice claims and determine unit cost by a 5-digit ZIP code. Push your broker to help you get your arms around this in 2024 because in truth, this matters the most. Human resources will always have a lot of priorities — benefits, culture, technology, recruiting, etc. — but the mistake is to attack it all at once. Choose one area, establish what success looks like and realistically scale it. Do it differently next year.

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Taft Stettinius & Hollister LLP

The Firm welcomed associate Alexa Civittolo to its Litigation and Construction Practices. Civittolo served as a summer associate at Hahn Loeser and a Judicial Extern with Judge Kimberly Jolson of the Southern District of Ohio. She was a Legal Extern for CareSource Office of the General Counsel and an Intern at the Office of the Federal Public Defender for the Southern District. Civittolo earned her J.D. from The Ohio State University Mortiz College of Law and a B.A. from Seton Hill University.

Daniel Platek is a commercial litigation associate in Taft’s Cleveland office and was previously a summer associate with the firm. He earned his J.D., magna cum laude, from the Cleveland State University College of Law and his bachelor’s degree in operations management and logistics management from The Ohio State University. While he was in law school, Dan was Managing Editor for the Cleveland State Law Review and was a Peer Tutor for Evidence, Estates & Trusts, Contracts.

IDR Investment Management LLC (“IDR”) is pleased to announce the promotion of Angela Cooper to Chief Financial Officer. Angela is a Certified Public Accountant with a Master’s in Tax from the University of Akron. IDR is a SEC Registered Investment Adviser focused on providing private equity real estate solutions to institutional investors. The firm manages over $5 billion in assets on behalf of several of the largest pension funds in the country.

HEALTH CARE

Crystal Clinic Orthopaedic Center Crystal Clinic Orthopaedic Center welcomes Matthew E. Levy, M.D. to its practice. Dr. Levy practices general orthopaedics. He has a special interest in sports medicine and joint replacement. A Cleveland native, Dr. Levy has served as team physician for a number of local high school and professional sports teams. He is a member of the American Academy of Orthopaedic Surgeons and the Academy of Medicine of Cleveland and Northern Ohio. Dr. Levy sees patients in Independence, Solon, and Warren.

LEGAL HEALTH CARE

LEGAL

Mazanec, Raskin & Ryder Co., L.P.A. Elaine K. Souder, Attorney, focuses her practice on general liability and liability defense for Souder commercial trucking and coach carriers including litigation of insurance coverage and bad faith issues. She also counsels on malpractice liability for professionals, including risk management. Souder has experience in Insurance Defense and Litigation. She was named to the list of “Ones to Watch” by Best Lawyers for Anderson Insurance Law in Cleveland for 2024. Zachary Anderson, Attorney, focuses his practice on public sector law, general liability matters, and appellate litigation. A former Cuyahoga County Assistant Prosecutor, he has litigation and negotiation experience in private and public (civil and criminal) sectors.

REAL ESTATE

Ohio Home Builders Association Enzo Perfetto, Elected 2024 President of The Ohio Home Builders Association. The OHBA is a 4,000member trade association serving home builders, remodelers, land developers, and associate members promoting affordable housing opportunities for all Ohioans through reasonable legislation at the state and local levels. OHBA will continue to serve its members as the voice of the building industry and land development industry in Ohio. OHBA is an affiliate of the National Association of Home Builders.

Benesch

Crystal Clinic Orthopaedic Center welcomes Brad M. Picha, M.D. to its practice. Dr. Picha specializes in spine surgery. He has expertise in the treatment of degenerative and traumatic conditions in all areas of the spine with specialization in minimally invasive techniques. He is also skilled in adult general orthopaedics. Dr. Picha is a member of the American Academy of Orthopaedic Surgery (AAOS). He sees patients in Cuyahoga Falls, Independence, and Warren.

LAW

Mansour Gavin LPA Mansour Gavin is pleased to welcome Natalie Browning to the firm’s Estate Planning and Probate and Real Estate practice groups. Before joining the firm as an associate, Natalie was a law clerk with Mansour Gavin, a summer associate for the Community Legal Aid Services in Akron, and an intern for the Ohio Judicial Conference. Natalie earned a J.D., magna cum laude, from the University of Akron School of Law where she served as the Executive Editor of Production for the Akron Law Review.

18 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 4, 2023

Alayna Bridgett has joined Benesch as an Associate in the firm’s Litigation Practice Group. She has experience in complex commercial, Bridgett construction, real estate, collections, and healthcare litigation. Nathan Wagner has joined Benesch as an Associate in the firm’s Real Estate & Environmental Practice Group. He is an Wagner experienced real estate professional with a passion for assisting clients with their needs in renewable energy, utilities, telecommunications, and large commercial acquisitions and dispositions.

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Cordogan Clark & Associates Cleveland, OH 440.835.0850 cordoganclark.com Cordogan Clark, Lesko Join to Grow Midwest Footprint A 70-year-old Cleveland-based firm, Lesko Architecture, has joined with Aurora, Ill.-based Cordogan Clark & Associates. The two family-owned firms’ reach and service is expanding. “We are excited about the opportunities this merger brings and the enhanced services we can provide,” said Cordogan Clark Principal John Cordogan. “Through this partnership, we have greater capacity to land larger projects, increase our footprint and acquire talent.” “Existing clients and project teams will remain in place, ensuring continuity in project delivery,” said Lesko Managing Principal Robert W. Blatchford, Jr. “Together we look forward to being an even more dynamic force in the industry.”

NEW OFFICES

RSM US LLP Cleveland, OH 216.523.1900 rsmus.com RSM US LLP, the nation’s leading provider of audit, tax and consulting services focused on the middle market, has made a strategic investment in Cleveland. Our new location underscores the firm’s commitment to this city and to the businesses that are rooted here. The RSM Cleveland team has completed their transition and will serve their clients from Key Tower located at 127 Public Square going forward. As the largest building in Cleveland, Key Tower is conveniently located to sports stadiums, playhouse square, endless restaurant options and retail stores. The new office will provide diverse workspaces designed to improve overall health and well-being — factors proven to increase performance, employee retention and satisfaction.

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