Crain's Cleveland Business, December 16, 2024

Page 1


Browns’ developer talks stadium and retail details

Lincoln Property Co. to work with HKS to design and build the sprawling Brook Park development

In another major step toward the team’s departure from downtown, Cleveland Browns owners on Tuesday, Dec. 10, announced Lincoln Property Co. will act as the master developer for the proposed domed stadium and mixed-use entertainment district in Brook Park.

e Dallas-based developer and real estate rm is working with architecture rm HKS, also based in Texas, to design and build out the 67,000-seat enclosed stadium and multiple phases of retail, apartment, hotel, parking and o ce space.

e football team's owners, the Haslam Sports Group (HSG), also released new renderings for the $2.4 billion enclosed stadium and a privately

The fastest-growing companies in Cleveland

This list spotlights Northeast Ohio companies that saw signi cant revenue growth from 2018 to 2023. PAGE 10

New Flats venue eyes May opening

Live events company

AEG Presents is optimistic for the Cleveland market

AEG Presents’ optimism for the Cleveland market is on full display with the Globe Iron, the company’s new concert and events venue under development at the West Bank of the Flats.

Plans for the Globe Iron — located in a mid-1800s building at 2325 Elm St. — came to light in summer 2023.

In a partnership with property owner Jacobs Entertainment Inc., AEG has been busy since then completing some $5.5 million in renovations at the space, which is leaning into its industrial vibe. e long-empty building, last used as a nightclub, was originally a foundry and then a shipyard.

funded entertainment district with a price tag of upwards of $1 billion.

e more than 1 million-square-foot, multiphase project will begin with an initial phase which includes two hotels with 450 hotel rooms, 575 apartments and more than 230,000 square feet of retail, according to HSG.

“ is will be one-of-a-kind,” said Justin Miller, vice president of operations for AEG Presents Great Lakes and PromoWest Productions, while surveying the still-raw space.

“We’ll be featuring a lot of things that the building has been over the years,” he said. “You’ll be getting a sense of history when you come in for a show."

Osborn Engineering’s new CEO re ects on its past and future

Osborn Engineering Co., a Cleveland-based engineering and architecture rm with national reach and a big sports stadium practice, has named Doug Lancashire its new CEO in addition to his role as president, e ective Jan. 1, 2025.

Lancashire succeeds Gary Hribar, Osborn’s CEO since 2019, who will continue as Osborn chair of the board and remain involved in key client relationships.

Osborn has served Northeast Ohio institutions, governments and businesses with a variety of services since its inception here in 1892 and ranks among the nation’s oldest engineering companies.

Osborn, headquartered on the 21st oor of 1111 Superior Ave. downtown, ranks as Northeast Ohio’s second-largest engineering rm on the Crain’s Cleveland Business 2024 list of Northeast Ohio engineering companies, in terms of the number of local registered engineers. With 62 local registered engineers, it is surpassed only by GPD Group of Akron, which has 215. e promotion means that Lancashire, president since 2019, will add envisioning the rm’s strategic direction to his role overseeing operations nationally.

In an interview, Lancashire said he looks to build on the substantial growth the rm has experienced under Hribar’s tenure at the top.

“We are a national rm now, which was not the case in the past, and in the best cash position we have been in for years," he said. at growth came from geographic expansion, particularly entering the Florida market in 2019. e rm now has o ces in Cape Canaveral, Deer eld, Orlando, St. Petersburg and Tampa. Osborn also has operations in Michigan and Pennsylvania. In all, there are 14 o ces.

ose o ces provide a base for Osborn to cover the area east of the Mississippi well as well as projects throughout the rest of the nation, especially for its sports group, the rm’s second largest in terms of revenue. Health care is the company’s largest segment, followed by primary and secondary education, and an increasing role in justice services such as courthouses.

“We still do an awful lot of local municipal engineering and infrastructure projects,” Lancashire said. ose local jobs include roles on the North Coast Connector, the Bedrock Riverview plan, the Rock & Roll Hall of Fame expansion and, on the SherwinWilliams corporate headquarters, civil engineering and testing systems in the new buildings for proper performance, called commissioning.

Current and recent sports work includes the new Tiger Woods Indoor Golf League in Jupiter, Flor-

ida, and 121 Financial Ballpark, an expansion and renovation for the Jacksonville Jumbo Shrimp minor league baseball team.

Lancashire has worked only at Osborn during his career, including interning there before joining the company 34 years ago after graduating from the Georgia Institute of Technology. (A framed Georgia Tech pennant is on the wall of his o ce.)

Lancashire is a second-generation engineer. His late father, Richard Lancashire, was a mechanical engineer at NASA’s Glenn Research Center and served for years as chair of the Westlake Planning Commission. Doug Lancashire graduated from Westlake High School and lives in the suburb today.

Being a native explains in part why Lancashire came back to Cleveland. He landed at Osborn initially because he was quizzing his later dad about what rm here would be good to intern at, and his father suggested Osborn because he knew the name through its NASA work.

He had attended Georgia Tech because it is a top-ranked engineering school and he had family living nearby. Being in Atlanta was signi cant for Lancashire’s future.

“I kind of stumbled into this,” Lancashire said. “I was in Atlanta when (50- oor) IBM Tower was going up. I was fascinated by the (octagonal) design and engineering. In school, I had a mechanical engineering design-build class where we spent every Friday visiting construction projects in Atlanta, such as Coca-Cola Tower and a solar eld for Georgia Power. At that point, it became something I had to do.”

As a mechanical engineer at Osborn, he worked on its typical projects. However, he also developed an interest in energy eciency early in his career years before the building business became enthralled with green building and sustainable design. Lancashire was the rst engineer in Ohio to provide professional engineering veri cation for the U.S. Environmental Protection Agency’s Energy Star label for a

commercial building for work at the Lausche State O ce Building downtown.

He focused on energy e ciency to the point he wrote professional articles and did presentations about it. He used the strategies throughout Osborn’s many distinct types of buildings.

“I saw it as a win-win for society and for our clients,” Lancashire said. He is more matterof-fact about making it through an engineering major. “Let’s say I had the knack,” he said.

e biggest challenge Lancashire said Osborn and engineering face is recruiting and retaining talent.

“ ere are only so many engineers,” Lancashire said.

at brings up one of his goals for the rm, besides helming the ship successfully and picking spots to grow: increasing professional development opportunities for employees to advance within the rm.

And, keep in mind, Osborn has not just the local engineering sta , but a total of 129 registered engineers throughout its o ces and a total sta of 325, with 120 located downtown.

In a news release about Lancashire’s being named CEO, outgoing CEO Gary Hribar wrote that he is con dent about his successor’s understanding of best-in-class engineering practices and proven leadership skills.

“I am con dent that under his direction, the rm will continue to grow and remain an employeeowned rm where everyone can prosper with the right emphasis on innovation while honoring its historic achievements," Hribar said.

As an employee-owned company, Lancashire said Osborn can choose directions and stick with them.

“Private equity is growing in ownership of engineering rms,” Lancashire said. “Not here. We don’t have to satisfy someone else’s goals, just our own.”

e company also has a philosophy called “One Osborn,” which means it does not organize separate pro t silos and shares work within practices and o ces. Geographic expansion has helped to diversify the company from reliance on the health of Cleveland’s market.

Lancashire declined to discuss revenues. But he noted that as a C-corporation, Osborn’s employees own stock in it.

"Our stock has outpaced the stock market,” he said.

And, especially after the pandemic, the company’s ability to share work between di erent ofces and for employees working from home grew. at also may help recruiting and retention of engineers and architects and other professionals.

“If someone with us has to move to, say, Vermont, we can x them up to work from home or join from there,” Lancashire said.

Doug Lancashire is set to become Osborn Engineering Co.’s new CEO. STAN BULLARD

Happy Holidays

Tick Tock Tavern to close after 80 years

After decades of operation, Tick Tock Tavern in Cleveland’s Edgewater neighborhood will close its doors this month.

e tavern, known for its St. Louis-style ribs and classic Greek recipes, announced via Instagram that its last day would be Dec. 18, following a post about an online auction of the kitchen and bar equipment.

The post said the closure is due to owners and brothers John and Chris Tripodis retiring, but John Tripodis told FOX 8 that “rising rent costs” are a factor. Tick Tock Tavern did not respond to Crain’s request for comment.

such as AA meetings and charitable events.

e brothers have been the owners for 33 years, but their journey with the tavern dates back 50 years when they were dishwashers and busboys, the post stated. John told NEOtrans that his cousin, Gus Katsaros, bought the establishment in 1972 from a German family who founded the business in the 1940s.

“Now as they prepare to retire, we celebrate not only their dedication but also the countless memories created within these walls,” the post stated.

listed.

According to Cuyahoga County property records, the parcel belongs to Clifton Medical LLC. The auction currently has 168 items listed and ends at 8 p.m. Dec. 18. The 168 items range from wooden bar stools and neon signs to TVs and a stainless steel sink to kitchen equipment, including a walk-in cooler, walk-in freezer, stove and deep fryers.

The tavern opened its doors in the early 1940s and has served such celebrities as Tom Hanks, Eric Clapton and George Stephanopoulos. It also has hosted community activities

Recognizing

The space is 4,400 square feet with a patio, according to a CBRE listing from Senior Vice President Kevin Moss and Senior Associate Vince Mingo. CBRE declined an interview about the listing.

e space is currently listed for lease with CBRE, but no price is

ose who purchase from the auction are required to disassemble and remove the items themselves. Items must be picked up Dec. 19 from noon to 2 p.m. or Dec. 20 from 10 a.m. to 2 p.m., unless purchasing one of the walk-ins.

Tick Tock Tavern is open Monday through Friday from 9 a.m. to midnight, and Saturday and Sunday from 8 a.m. to midnight. NEOtrans was the rst to report the closure.

Steven M. Licciardi

for 12 years of distinguished service as a Board Member of the Cuyahoga County Board of Developmental Disabilities.

Cuyahoga DD supports and empowers people with developmental disabilities to live, learn, work and play in the community.

www.cuyahogabdd.org

Foundry Concert Club leaving its Lakewood home for Old Brooklyn

After more than 20 years in the same Lakewood space, e Foundry Concert Club at 11729 Detroit Avenue announced it's moving to Pearl Road in Old Brooklyn.

While this may be a surprise to concert-goers, it was also a surprise to e Foundry, as it “has been a staple in the neighborhood for many years,” according to its social media post.

e venue says the move is because its lease was not renewed.

According to Cuyahoga County property records, Mazz LTD is listed as the building owner, but contact information for the company wasn't immediately available.

In its social media post, e Foundry said the last two years presented “numerous challenges,” including severe ooding in the basement, a leaking roof and capacity issues imposed by the city.

e Foundry will continue operations at its current location until Jan. 29 and will reopen at 4256 Pearl Road the weekend of Feb. 14. e new location is the former Mr. E’s Inn, which closed in November 2023 and is 15 minutes from the current location.

Even with the move, the venue's post said sta are still "optimistic about the future."

Representatives with e

Foundry have not yet responded to multiple requests for comment from Crain's.

e new location will “retain the classic Foundry vibe and similar layout,” according to the post. e site also comes with a large yard and attached garage space that can be used as a covered event space and for outdoor seating.

e rst show set for the new location is the Punkzilla Fest for an “Anti Valentine's Day” bash, with doors opening at 5:30 p.m. and music at 6 p.m. It will feature eight local bands: Formerly Candice, Eaten By Kittens, Blind Boxing, Pink Maskerade, Rip Riot, e Daze, Wasted Society and Free Drew.

Due to the unexpected move, Foundry owner Rae Gentry launched a GoFundMe e ort to help o set some of the moving costs, as “having to move an entire music venue that’s been in the same space for 20+ years is quite a costly venture.”

As of Dec. 6, $1,180 of the $10,000 fundraising goal had been raised.

e money will be used for such things as hiring a local company to help with the move, shutting down the business for two weeks to move and set up the new space, and getting custom build-outs for the new space to create the same “Foundry charm,” according to the GoFundMe description.

The Foundry Concert Club at 11729 Detroit Avenue in Lakewood. | GOOGLE MAPS
The

VENUE

From Page 1

“We are working on highlighting a lot of cool features in there already, like the exposed brick and brick archways and open beams, which we will light,” added Jason Rogalewski, senior vice president of AEG Presents Great Lakes and PromoWest Productions. “It’ll have a clean aesthetic with rich tones and a lot of indirect lighting, sort of moody. A space like this could be a little industrial chic or cold. But this will be warm and inviting.”

“To me," he added, "it’s got a feel that screams Cleveland."

A soft opening previously slated for March has now been pushed back to May 1.

But to build some buzz, AEG is soon announcing a slate of inaugural shows featuring some wellknown artists.

For AEG, the venue is also another step forward in developing its Cleveland footprint.

“Cleveland has always been an important — and some would say legendary — market in terms of its music scene,” said Shawn Trell, chief operating officer for Los Angeles-based AEG Presents.

“There’s a reason the Rock and Roll Hall of Fame Museum picked Cleveland as its home. It’s got thriving nightlife and a committed fanbase who loves to go out to see live music,” Trell said. “We’ve been bullish on the market for years, beginning with our partnership with PromoWest, which gave us added insight into the market and the opportunities here.”

“Cleveland has always been an important — and some would say legendary — market in terms of its music scene.”
Shawn Trell, chief operating officer for Los Angeles-based AEG Presents

It was 2018 when AEG acquired PromoWest Productions, the Columbus-based concert promoter that set shows throughout the Midwest.

But that deal was actually predicated by AEG’s acquisition of the iconic Agora Theatre and Ballroom, which it has been operating since summer 2017.

Later, amid the throes of the COVID pandemic and a downturn for the live events business, AEG doubled down on Cleveland by partnering with Nautica Entertainment LLC, a subsidiary of Jacobs Entertainment Inc., in signing a 10-year lease to operate the Jacobs Pavilion amphitheater. That's one of many properties owned by Jacobs along the Nautica Entertainment Complex, which includes Shooters, the Greater Cleveland Aquarium and Windows on the River banquet hall. Pat McKinley and Mike Brachna, executive vice president and vice president for Nautica, respectively,

said they were more than happy to work with AEG on the Globe Iron space following what’s already been a fruitful partnership thus far.

Citing nondisclosure agreements, officials declined to discuss financial details regarding revenues or their leases.

But since AEG took over the Jacobs Pavilion from LiveNation in 2022, Brachna noted that the volume of events there over the summer season has increased materi-

ally from about 20 to more than 30. The goal for next year is 40.

“That venue is exceeding our expectations for where we thought we would be a few years into it as far as shows and profitability,” Rogalewski said.

The initial goal for the Globe Iron is to have about 100 live events annually plus a few dozen more private events, including weddings (a few are already booked), fundraisers and galas.

On the Nautica/Jacobs side, the Globe Iron is viewed as another piece in the ongoing rebirth of the Flats West Bank.

“That will bring life to the Flats, and we are always looking to bring more excitement down here,” Brachna said. “And it will help develop bands that can grow and eventually perform in the (Jacobs) Pavilion. We are very excited about it and look forward to the grand opening.”

“Shooters is also transforming itself under new ownership,” McKinley said. “So next year is going to potentially be one of our best years ever. That is very encouraging. We’ll have two new entities in 2025, and that’s awesome.”

There’s still plenty of work to be completed before the Globe Iron comes online both inside and out, including creating a courtyard that will funnel guests into the club.  That courtyard will be bordered

Globe Iron, AEG Presents’ new concert and events venue, is under development at the West Bank of the Flats. | GRACE mCCONNELL
The current property on Elm Street versus plans for the Globe Iron; renovations to the building will highlight existing features like exposed brick and archways. | GRACE mCCONNELL/AEG PRESENTS

by another historic L-shaped building that some wanted to see torn down as part of the renovations for the Globe Iron, though some city officials were resistant to that.

For now, that structure remains in place. Miller and Rogalewski don’t really mind as they’ll work with whatever they have. Plus, they see it as just another piece of the industrial vibe there.

Nautica officials might like to change that someday, though.

“Ideally, we would like to have that down,” Brachna said. “But right now, we’re just focused on getting the Globe Iron and the surrounding parking lots up and running, and then we will go back and make a determination with that building.”

As far as AEG’s operations, the 1,200-capacity Globe Iron — where AEG has signed a 20plus year lease — fits neatly as a missing piece in its growing Cleveland portfolio alongside the roughly 2,000-capacity Agora and the 5,000-capacity Jacobs Pavilion.

“We’re always looking for rooms that fill a gap in both the market and our venue portfolio,” Trell said. “AEG Presents prides itself on being able to work with any performer through each rung on the ladder of their career, while also super-serving a variety of audiences in every city where we have a presence.”

There are no concerns about taking away business from the other properties. On the contrary, the expectation is it will develop bands that could play those larger spaces in the future, or just be another option for performers as they set tour routes.

“We find that the cannibalizing thing is a fear that I think a lot of people or businesses might naturally have, but we’ve found that the complete opposite effect happens,” Rogalewski said. “It opens us up for more conversations, more connections. Now we have more available that we can present to you and talk about as we understand what your needs are.”

“And it gives us more options on the private events side,” Miller said. “Now we’ve got three places that we can present a client. So we’re not losing events or robbing from one place to bolster another. They’ll all support each other, and that pushes the whole thing forward for us.”

As AEG’s love for Cleveland continues to blossom it could look to develop even more venues here in the future.

However, Trell said that they're taking one step at a time.

“If the right opportunity comes along that makes sense for our business plan and the market in question, we are interested, Trell said. “Right now, our focus is on getting a great new venue that we’re excited about up and running.”

BROWNS

From Page 1

The first phase of the mixed-use part of the Brook Park development is expected to be delivered in late spring or early summer 2029, Peter Kelly, Lincoln Property executive vice president, told Crain’s.

“It will lag the stadium completion, probably be six to 12 months after that groundbreaking,” said Kelly, who is the firm's Midwest market leader and is based in Chicago.

Lincoln will serve as the Brook Park project’s master developer and will be a “financial partner” with HSG to help find other institutional investors for the multiple stages of development, Kelly said. The project will be run out of the Midwest office.

“We're pulling from our different experience around the country, but it's led by the Midwest region, and everyone on that team has a lot of experience,” Kelly added.

The latest plans, which are slightly different from ones released by HSG in August, include a three-acre event plaza, as well as roadways that will be closed to cars to create pedestrian-friendly walking and tailgating zones on game days, Kelly said.

“We shifted the development area to the northeast so that we can grow outward and go both directions and continue to build,” he added.

Ideally, the development anchored by the stadium would grow to 300,000 square feet of retail, 1,100 apartments and 500,000 square feet of office space, Kelly said.

The goal is to create a yearround entertainment and residential district that would have $1.2 billion economic impact on the region and bring in 1.5 million visitors.

In an executive summary of a two-year economic impact study released in early December by HSG, a domed Huntington Bank Field stadium next to major highways and Cleveland Hopkins International Airport has the potential to bring visitors for six to 10 non-NFL events annually.

The Browns' move from the team's current downtown Cleveland lakefront location would cost the city an estimated $30 million, according to a City Hallcommissioned study.

As part of negotiations over the team’s lease, Cleveland Mayor Justin Bibb’s administration offered more than $461 million in tax and parking revenue toward renovations to upgrade and partially enclose the 25-year-old lakefront stadium.

City and Cuyahoga County officials have also suggested the Browns build a new enclosed stadium and surrounding retail and residential development on the nearby 500-acre site of Burke Lakefront Airport.

This recent announcement

throws cold water on HSG’s willingness to continue discussions of those two options.

The Browns are following a trend of using sports arenas as an anchor for adjacent mixed-use developments which means more profit for the team owner/ investors.

The Brook Park development will allow HSG to boost income from profits as one of the main investors and would provide — in the form of tax revenue — a mechanism to pay the debt service on bonds that would be used to finance the dome’s construction and maintenance.

There are 43 sports facilities currently in development around the country designed to draw year-round visitors, Kelly explains.

“The private investment we're going to make for this live, work, play environment and right near the airport — we think that there will be a rising tide effect,” Kelly said. “We've seen it elsewhere. It's going to draw visitors every day and drive economic activity to the benefit of the region.”

Lincoln has developed $7.4 billion in mixed-use real estate across the country and partnered on projects for other professional teams.

For instance, the firm worked on the Dallas Cowboys’ headquarters and training center in Texas and the 33-acre development around the Bank of America Stadium in Charlotte, where the

NFL's Carolina Panthers and Charlotte FC of Major League Soccer play.

Recently, the firm worked on a 50-acre project that included a training facility and performance center for the National Basketball Association’s San Antonio Spurs. Peter John-Baptiste, chief communications officer for the Browns, said the decision to choose Lincoln was based on the firm’s reputation and Midwest presence.

“We have been focused on assembling a team of experts who create a best-in-class stadium experience that drives new visitors and economic activity to our region,” Dave Jenkins, HSG chief operating officer said in a statement. “Lincoln is internationally renowned, and we are excited for their work and impact on Northeast Ohio.”

The architecture firm, HKS, has worked on SoFi Stadium in the Los Angeles suburb of Inglewood, California (home of both the Los Angeles Chargers and Los Angeles Rams); the Indianapolis Colts’ Lucas Oil Stadium in downtown Indianapolis; and the Cowboys’ AT&T Stadium in Arlington, Texas.

HSG has secured an option for the 176-acre parcel adjacent to the airport. Its plan is to build the domed stadium, with adjacent development, for the Browns to play in Brook Park after the team's lease at its downtown Cleveland stadium is up in 2028.

Renderings show the Browns’ proposed Brook Park development. Plans include a three-acre event plaza and pedestrian-friendly walking and tailgating zones for game days. HKS

Redwood Living tests new concept with Amherst Township project

Redwood Living of Independence has built and owns about 18,000 of its single-story apartment homes in Ohio and eight other states, but is testing two changes at its 205-unit community rising in Amherst Township.

For the rst time, Redwood will build one-bedroom units to see how well the switch fares from its two-bedroom standard design.

“We’re baby-stepping this as we test it,” Taylor Haley, a vice president

of property operations, said in a phone interview. “ is is close to our Independence corporate o ce so we can monitor it closely.”

e company believes there is growing demand for one-bedroom units, based on multifamily industry trends and feedback from its own leasing teams.

“We think it’s a natural extension of our brand,” Haley said. “Someone who is retired might not want that extra bedroom as an o ce, for example. Everything else, from an individual entrance for each unit to

the attached garage is the same.”

Tiny steps, indeed. e company will have two one-bedrooms available at its Amherst Township community in the second quarter of 2025.

e one-bedrooms are part of the project's 153-unit rst phase at 1120 Red imbleberry Drive in Sandstone Development, a residential and commercial megadevelopment with multiple builders and project types. e project will eventually hold a total of 205 units.

In an announcement on the new

community, Redwood detailed other changes to its product in Amherst Township. It is installing white kitchen cabinets for the rst time, while also using white and neutral greys on the exterior where it used tan and clay tones in the past.

e site is south of the Ohio Turn-

to our incredible supporters! Your generosity empowers students in Northeast Ohio to become future leaders in the architecture, engineering, and construction industry!

pike and east of State Route 58 o Oberlin Road. A timeline is not yet set for building the remaining Redwood lots.

A one-bedroom does have a potential drawback. Only two residents may occupy a one-bedroom unit. Redwood’s standard twobedroom may house four people under local zoning codes. e asking rent for an Amherst Township one-bedroom starts at $1,999 monthly; a two-bedroom start at $2,199.

e location in Amherst Township is on the western border of Lorain County. Typically the Amherst and Amherst Township areas are seen as move-up areas for Lorain and Elyria. However, Haley believes there is a larger potential market available for the site.

“We see this as the extension of the west suburban market from Avon and Avon Lake,” Haley said. “ is is where new homes are going in from Cleveland’s west suburbs.” e Amherst Township project will be Redwood’s sixth community in Lorain County. It also will be the concern’s 30th development in Northeast Ohio from Cleveland to Canton. e rm is also building a community in Sandusky and has one in Huron, Ohio.

In some respects, the company is lling an opening in area markets. Its marketing also points out that customers can view Redwood communities in Elyria and Sandusky to inspect its two-bedroom plans.

Ralph McGreevy, executive vice president and chief operating ocer of the Northern Ohio Apartment Association trade group, said in a phone interview that he doesn’t believe Redwood will face a challenge leasing the project in an area 34 miles west of Public Square in Cleveland.

“ ey do their homework,” McGreevy said. “ ey see a need and respond to it, so there must be demand there.” He views a onebedroom test in the same vein. “Again, the market must tell them there is a need for it.”

e huge scale of the Amherst Township project can allow the company to test the idea without much negative impact if it does not go over well. e multifamily market may also di er from the singlefamily home market in terms of acceptance of one-bedroom units.

If someone were to build a onebedroom home for themselves, it would likely be a harder idea to accept because it might be harder to sell than a house with more bedrooms. And for a homeowner, it might be a bigger bang for almost the same buck.

Redwood also has new communities where it is adding new two-bedroom suites in Norton and Wadsworth.

A rendering shows plans for Redwood Living’s one-bedroom units. | CONTRIBUTED

Rethinking aging and care

It’s important to make informed choices about loved ones’ care before critical moments

Aging is a journey we all embark on, and how we approach it makes all the difference. At Home Instead Cleveland (CLE), we strive to transform the narrative around aging from one of fear and crisis to empowerment, planning and connection. Our mission is to support families and seniors with resources, compassionate care and proactive solutions to navigate the complexities of growing older.

The new face of aging

Today’s seniors are living longer, fuller lives, redefining what it means to age. They are embracing active lifestyles, staying engaged with their families and seeking to maintain independence. However, many still need support to ensure their quality of life and well-being. Aging isn’t just about managing physical needs — it’s about fostering relationships, supporting emotional health, and preserving dignity.

At Home Instead CLE, we aim to meet these aspirations through a holistic approach to care. Our Care Professionals deliver personalized services that celebrate each client’s challenges, joys and goals. From companionship to specialized Alzheimer’s and dementia care, we focus on building trust and meaningful connections that enhance life’s journey.

Proactive care: planning for the future

Too often, families make care decisions in moments of crisis — a sudden fall, hospitalization or unexpected health decline. While care is critical during these times, waiting until a crisis arises can limit options and add stress. Home Instead CLE advocates for a

“Too

often, families make care decisions in moments of crisis — a sudden fall, hospitalization or unexpected health decline. While care is critical during these times, waiting until a crisis arises can limit options and add stress.”

proactive approach to aging, one that starts before care becomes a necessity.

Early planning allows families to explore care options thoughtfully, aligning decisions with their values and priorities. Building relationships with professional caregivers early ensures a supportive framework is in place as needs evolve. This proactive mindset not only benefits aging loved ones but also strengthens family bonds, reducing the emotional and logistical burdens of caregiving.

The power of relationships in care

Care at Home Instead CLE goes beyond tasks; it’s about relationships. Our Care Professionals are not just caregivers — they are companions, advocates and trusted friends. They bring safety, dignity and compassion to their clients, fostering emotional well-being and trust.

Family caregivers often bear significant responsibilities that can lead to burnout. To support them, Home Instead CLE partners with local organizations to offer educational resources, workshops, and support groups. Topics include navigating care options, understanding veterans’ benefits and managing difficult conversations about care needs. By

empowering families with knowledge and support, we help them navigate the aging journey with confidence.

Training and collaboration

Home Instead CLE’s state-of-the-art training centers in Cuyahoga and Lorain Counties are pivotal in elevating care standards. These centers host educational events for families, caregivers and healthcare professionals, covering topics such as managing chronic conditions, improving communication and promoting emotional well-being.

Home Instead CLE’s leadership in veterans’ services is another cornerstone of its mission. Achieving credentialing to provide care for veterans reflects the organization’s commitment to serving those who served our country. Caregivers receive specialized training to address the unique needs of veterans, ensuring they deliver comprehensive and compassionate care.

Creating a community of support

Beyond direct care, Home Instead CLE’s commitment to the Cleveland community is evident through partnerships with organizations like the Cleveland Clinic Taussig Center,

Alzheimer’s Association and Benjamin Rose Institute. These collaborations amplify its impact through caregiver training programs, resource fairs and family workshops.

My involvement on boards such as the North Coast Health Foundation and Light of Hearts Villa are part of our dedication to health equity and transformational change. By advocating for underserved populations, Home Instead CLE helps create a community where aging is supported with care, resources and dignity.

Rethinking aging

Aging isn’t just about challenges; it’s about thriving. At Home Instead CLE, we focus on proactive care that empowers families and celebrates the dignity of aging. By fostering relationships, providing education and supporting families, we are building a future where seniors can age with confidence, connection and joy.

Start the conversation today

If you’ve noticed changes in a loved one or want to explore care options, let’s start the conversation. Together, we can create a plan that reflects your family’s values and brings peace of mind. For more information, call 440-914-1400 for a free in-home care consultation or visit us online at www.homeinstead.com/116

Cleveland’s fastest-growing companies

Expansion, acquisitions and organic growth: Those were some of the main factors behind the tremendous growth of the companies on our inaugural Fast 50 list. The Fast 50 list spotlights Northeast Ohio companies that saw significant revenue growth from 2018 to 2023. The companies on our list had an impressive five-year median revenue growth of 164% and an average revenue growth of 379%. Across the list, the tech and telecom sector, along with the construction and engineering industry, lead the way with eight companies apiece. Health care follows with six businesses on the list, and one of these companies ranks No. 1 with a more than 3,000% surge since 2018. And while it’s usually startups touting rapid growth, two of the companies on the list have been around for more than a century: Hilscher-Clarke Electric Co. and Rafter Equipment Corp. Together, the Fast 50 companies generated $9 billion in 2023 revenue and employed nearly 8,000 local workers. Read on for our full ranking of Cleveland’s fastest-growing companies and profiles on the five firms that rose to the top.

1. SPR Therapeutics

2. Cleveland Kitchen3. Great Day Improvements

It shouldn’t be a big surprise to see SPR Therapeutics at the top of the Fast 50 list. The medical device producer — which focuses on pain relief — reached a big milestone in 2021 when it announced its 5,000th implant of its SPRINT Peripheral Nerve Stimulation (PNS) System and dramatically increased its office space in 2022.

But the 15-year-old company — which has 250 fulltime employees, including 85 in Northeast Ohio — followed nearly $64 million in revenue for 2023 by landing $85 million in financing in February 2024 to advance the commercial expansion of the SPRINT PNS System, a non-opioid, minimally invasive pain treatment option.

“Physicians are turning to SPRINT more often given a significant set of published data on safety and efficacy in the use of PNS and expanded use indications in recent years,” the company told Crain’s for a previous story. And that expanded use is leading to more options for patients everywhere to access pain relief. The SPRINT PNS System is designed to provide relief from chronic pain, particularly for patients with shoulder, knee or back pain — all without a permanent implant, nerve destruction or the risk of addiction.

Maria Bennett, president, CEO and founder of SPR Therapeutics, told Crain’s earlier this year, “We’re really pleased to see the significant pain relief that those patients are experiencing and the improvement in their quality of life.”

While Cleveland has plenty of popular local eats — like pierogies or ball park mustard — Cleveland Kitchen has done its part for the local food scene, adding its line of signature sauerkrauts, pickle and kimchi products to the dressing must-haves over the last decade.

What started out as a small line of products offered at the North Union Farmer’s Market quickly grew to find its way to shelves of local Giant Eagle and Heinen’s shops. But its founders — brothers Mac and Drew Anderson and their brother-in-law, Luke Visnic — had even bigger plans.

By 2021, its products were being sold by large national retailers — like Albertsons Intermountain, Whole Foods and Harris Teeter — in all 50 states. Add to that some acquisitions and key state tax credits, and it’s easy to see why Cleveland Kitchen continues to be recognized as one of the fastest-growing companies in the nation.

Cleveland Kitchen grew internally, too: In 2021, the company had 36 full-time employees, but it now boasts over 130 workers.

But, the company tells Crain’s, acquisitions aren’t the only story. While its February 2022 acquisition of Sonoma Brinery added around $5.5 million to gross sales in 2022 and 2023, the rest of its growth has been organic.

When Macedonia-based home remodeling company Great Day Improvements acquired the Leafguard gutter system and the Englert metal roofing system from Englert Inc. in June 2024, it was just the latest in an ongoing string of pick-ups that’s seen the company take on a national prominence. At the time, the company said the moves would further solidify “its reputation as the go-to destination for home remodeling needs.”

The company later underscored this, telling Crain’s, “Great Day’s growth has been fueled through geographic expansion and acquisition.”

The aggressive moves have paid off. The company’s revenue in 2014, when Managing Partner Ed Weinfurtner joined the company, was $44 million. In 2023, that number was a whopping $1.3 billion, according to Crain’s data.

Employing several thousand workers across 12 brands — including Patio Enclosures, Universal Windows Direct and K Designers — the company’s footprint now includes more than 280 locations across 120 markets.

4. DeliverThat 5. Keyfactor

In an era of constant and nearly instant access to delivery options, Canton-based DeliverThat took things one step beyond delivering burgers to hungry customers. The company, founded in 2016, focuses on flat-rate catering delivery and setup, partnering with restaurants including Luna Grill and bigger clients such as the Wegman’s grocery chain.

DeliverThat also developed a dashboard that could integrate with a number of other catering-related platforms, like EZ Cater, Cartwheel and Vromo. But that isn’t where DeliverThat decided to stop.

The company tells Crain’s that besides its geographical expansion — dozens of markets — and the step up with software, it’s also added new industries beyond just food and beverage. The company has added floral and grocery clients to its growing list of industries for its “last mile” delivery service.

DeliverThat boasts over 25,000 drivers across the country, with a presence in all 50 states and, so far, more than $300 million in catering deliveries made.

As the need for cybersecurity to protect against all sorts of threats has grown globally, so, too, has Independence-based Keyfactor. The cybersecurity firm considers itself a pioneer in the so-called public key infrastructure space which, combined with the necessity for online defense, has fueled the company’s rapid growth.

The company’s critical infrastructure support includes helping companies protect encrypted data, move that encrypted data and validate the communication between digital identities. As Crain’s reported in 2019, Keyfactor was poised to become an essential player in security within the “internet of things” (the network of things that can connect and share data across the internet).

Now, the company is a major player on a global scale, including a 2021 merger with Swedish company PrimeKey and securing a minority investment from a subsidiary of San Francisco’s Sixth Street Partners in late 2023 — which gave Keyfactor a $1.3 billion valuation.

These moves are one reason why Keyfactor has seen a 1,000% increase in its revenue over five years, ending in 2023, according to Crain’s data.

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SPOTLIGHT

Constructing a path to success

As part of the team bringing major development projects like Library Lofts to life, Brookpark Design Builders has grown with a reputation for innovation and quality craftsmanship by Vince

Brookpark Design Builders’ customer base has grown. Its business model remains unchanged.

“Every customer we have, we make sure is satisfied,” says company Vice President Steve Friedmann. “Thankfully for us, construction in Ohio is strong, so word travels quick when there are competent businesses that can do what we do. People pass along our name.

“And as long as we can make sure we’re doing the right thing for our customers, word is going to spread.”

Brookpark, founded in 1951 on its namesake road but now based in North Royalton, initially established itself as a builder of prefabricated metal buildings. But the company soon branched out into designing and building, usually with specialized paneling. Friedmann’s father Ralph bought the company in 2005, and it continued to expand into exterior cladding and paneling.

The company has now ventured into Columbus. They worked with a private client on a roofing project and helped design a large-scale project for the Solid Waste Authority of Central Ohio of a roof that includes a solar array.

Most solar arrays are installed on top of an existing roof, but the one Brookpark designed would use the solar panels as shingles.

“It’s becoming more and more popular,” Friedmann says. “There’s not a huge market in our area, but I can see that changing very quickly. We hope to do a lot more.”

Brookpark is one of the companies that worked on the Library Lofts, a 207-unit apartment building atop the new Martin Luther King branch of the Cleveland Public Library. The studio and one-bedroom apartments are part of a building boom in University Circle, and residents started moving in this fall (the library is scheduled for a grand opening in January).

“The architect designed the project so it would come about eight inches off the building envelope,” Friedmann says. “There are very pronounced lines. It was very intricate and very labor intensive. It really makes the colors of the building pop.”

But the project was a complicated one, Friedmann says. There was one contractor for the library, and one for the apartments. Also, it was effectively a confined space,

says Eric Ruck, a project manager for Power Construction. “We were able to use a boom lift for a little while, but we had to transition to a swing stage,” Ruck says, meaning that the team worked from scaffolding hanging from the building.

Brookpark made the metal panels for the walls, sourcing Swiss pearl from Switzerland. Friedmann says manufacturing in-house is one of the company’s keys to its success and hopefully to sustained growth. “We’re vertically integrating, so we’re our own best customer,” he says.

Ruck says Brookpark also offered expertise throughout the process.

“They provide good insight on the feasibility,” he says. “There was a sheet metal detail that they went above and beyond on. They knew it would look better and perform better. They’re a trusted advisor in details like that.”

Another opportunity for growth, Friedmann says, is with glasswork. Brookpark works mostly in metal now. “Glass works together with the panel system,” Friedmann says. “It just makes sense for us to look in that direction.”

The company currently has a 20,000-squarefoot warehouse and 4,500 feet of office and manufacturing space, putting them at capacity, Friedmann says. And it’s unclear what the next step will be – expansion or new construction. But it’s a good problem to have.

“We’ve already lined up a pretty significant amount of work,” Friedmann says. “Our 2025 already exceeds 2024.”

To learn more about Brookpark Design Builders, visit them online at brookparkdesign.com.

Library Lofts.

FAST 50: THE FASTEST GROWING COMPANIES

ResearchbyDavidNusbaum(david.nusbaum@crain.com).|Source:Informationwasprovidedbythecompanies.Toqualify,companiesmustbeprivatelyheldandheadquarteredintheNortheastOhio areaincludingAshland,Ashtabula,Cuyahoga,Erie,Geauga,Huron,Lake,Lorain,Mahoning,Medina,Portage,Stark,Summit,TrumbullandWaynecounties.Companiesmusthaveatleast$5millionin revenuein2023.Franchisees,regulatedbanks,utilities,realestatedevelopers,realestateinvestmenttrusts(REITS)andsomeholdingcompanies(suchasthosethatprimarilybuy/sellothercompanies/ large assets) were excluded. See much more at CrainsCleveland.com/data

LIST

FAST 50: THE FASTEST GROWING COMPANIES

CRAIN’S LIST

FAST 50: THE FASTEST GROWING COMPANIES

ResearchbyDavidNusbaum(david.nusbaum@crain.com).|Source:Informationwasprovidedbythecompanies.Toqualify,companiesmustbeprivatelyheldandheadquarteredintheNortheastOhio areaincludingAshland,Ashtabula,Cuyahoga,Erie,Geauga,Huron,Lake,Lorain,Mahoning,Medina,Portage,Stark,Summit,TrumbullandWaynecounties.Companiesmusthaveatleast$5millionin revenuein2023.Franchisees,regulatedbanks,utilities,realestatedevelopers,realestateinvestmenttrusts(REITS)andsomeholdingcompanies(suchasthosethatprimarilybuy/sellothercompanies/ large assets) were excluded.

See much more at CrainsCleveland.com/data

Building Great Things With Great People.

ResearchbyDavidNusbaum(david.nusbaum@crain.com).|Source:Informationwasprovidedbythecompanies.Toqualify,companiesmustbeprivatelyheldandheadquarteredintheNortheastOhio areaincludingAshland,Ashtabula,Cuyahoga,Erie,Geauga,Huron,Lake,Lorain,Mahoning,Medina,Portage,Stark,Summit,TrumbullandWaynecounties.Companiesmusthaveatleast$5millionin revenuein2023.Franchisees,regulatedbanks,utilities,realestatedevelopers,realestateinvestmenttrusts(REITS)andsomeholdingcompanies(suchasthosethatprimarilybuy/sellothercompanies/ large assets) were excluded. See much more at CrainsCleveland.com/data

CRAIN’S LIST

FAST 50: THE FASTEST GROWING COMPANIES

CRAIN’S LIST

FAST 50: THE FASTEST GROWING COMPANIES

ResearchbyDavidNusbaum(david.nusbaum@crain.com).|Source:Informationwasprovidedbythecompanies.Toqualify,companiesmustbeprivatelyheldandheadquarteredintheNortheastOhio areaincludingAshland,Ashtabula,Cuyahoga,Erie,Geauga,Huron,Lake,Lorain,Mahoning,Medina,Portage,Stark,Summit,TrumbullandWaynecounties.Companiesmusthaveatleast$5millionin revenuein2023.Franchisees,regulatedbanks,utilities,realestatedevelopers,realestateinvestmenttrusts(REITS)andsomeholdingcompanies(suchasthosethatprimarilybuy/sellothercompanies/ large assets) were excluded.

Multiple employer welfare arrangements, or MEWAs, ease rising healthcare costs for small businesses

ResearchbyDavidNusbaum(david.nusbaum@crain.com).|Source:Informationwasprovidedbythecompanies.Toqualify,companiesmustbeprivatelyheldandheadquarteredintheNortheastOhio areaincludingAshland,Ashtabula,Cuyahoga,Erie,Geauga,Huron,Lake,Lorain,Mahoning,Medina,Portage,Stark,Summit,TrumbullandWaynecounties.Companiesmusthaveatleast$5millionin revenuein2023.Franchisees,regulatedbanks,utilities,realestatedevelopers,realestateinvestmenttrusts(REITS)andsomeholdingcompanies(suchasthosethatprimarilybuy/sellothercompanies/ large assets) were excluded.

As a small business, you’re constantly seeking ways to balance your company’s needs and your employees’ well-being. Health insurance is one key area where this balance is essential, especially with medical costs continuing to trend upward.

A 2024 report from PwC, a global firm providing expert assurance, tax and consulting services, projects a 7.5% increase for Individual and 8.0% for Group markets in 2025, mainly driven by inflation, prescription drug spending and behavioral health utilization.

Many small businesses opt for either a traditional group health plan or no health plan at all. Those that choose a traditional plan are often met with significantly higher premiums and limited flexibility to suit their team’s unique needs.

A multiple employer welfare arrangement (MEWA) offers a compelling and affordable alternative.

The cost-saving advantages of a MEWA

While a MEWA falls under the category of group health insurance, it’s distinct in its ability to cater to the financial needs of small businesses.

For starters, MEWAs help smaller businesses control costs by being self-funded. You and other participating employers collectively pool your contributions to pay for health benefits rather than you alone paying fixed premiums to

The benefit of lower costs also applies to Affordable Care Act (ACA) plans. With MEWAs, rates are based on individual profiles, like medical history, age, gender and location, while ACA plans are required to cover everyone regardless of their health status.

This flexibility eliminates unnecessary coverage to focus on essential benefits, which can further lower costs.

A hometown partner ready to help

ResearchbyDavidNusbaum(david.nusbaum@crain.com).|Source:Informationwasprovidedbythecompanies.Toqualify,companiesmustbeprivatelyheldandheadquarteredintheNortheastOhio areaincludingAshland,Ashtabula,Cuyahoga,Erie,Geauga,Huron,Lake,Lorain,Mahoning,Medina,Portage,Stark,Summit,TrumbullandWaynecounties.Companiesmusthaveatleast$5millionin revenuein2023.Franchisees,regulatedbanks,utilities,realestatedevelopers,realestateinvestmenttrusts(REITS)andsomeholdingcompanies(suchasthosethatprimarilybuy/sellothercompanies/ large assets) were excluded. See much more at CrainsCleveland.com/data

“MEWAs can also allow avoidance of certain taxes, fees and regulations associated with the ACA,” Polk said, which could pass additional savings directly into your budget.

A benefit option designed for small businesses

Take a moment to consider where your employees are on their health journey. Are they:

an insurance company.

The risk is then shared among all participants. Because the group is larger, this can lead to reduced costs, especially if claims are lower than expected.

“Savings can be significant compared to traditional insurance offerings, sometimes as much as 20 to 30%,” said Dan Polk, Vice President of Small Group Sales at Medical Mutual.

When the insurance company manages the risk like in a traditional group plan, you’ll likely pay higher premiums, especially if your employees have high healthcare needs.

• Young with a growing family?

• Closer to retirement age?

• Dealing with chronic health issues?

You might not know the answer, but to ensure comprehensive coverage for everyone, MEWAs provide flexibility to design health plans and benefits that cater to the individual needs of your employees.

Options like comprehensive wellness programs can be added to help promote lifestyle goals and healthy environments to keep your employees feeling their best. Including specialty insurance products, such as dental, vision, life and disability, enhances your benefit offering.

Any enrollment process can seem daunting without a clear starting point, including for MEWAs. However, there are companies working together to reduce this burden.

Medical Mutual, the oldest and one of the largest insurance companies based in Ohio, has teamed up with the Council of Smaller Enterprises (COSE) and affiliate chamber partners to offer smaller businesses their own quality MEWA option: the COSE Benefit Plan.

“The COSE Benefit Plan is specifically tailored to small businesses with less than 50 total employees, including sole proprietors,” Polk said. “You can join more than 8,300 small businesses with access to over 59,000 in-network pharmacies across Ohio to ensure your employees get the care and attention they deserve.”

For more information about the COSE Benefit Plan or how to join, contact your broker, a Medical Mutual sales representative or visit www.cosebenefitplan.com.

LIST

FAST 50: THE FASTEST GROWING COMPANIES

ResearchbyDavidNusbaum(david.nusbaum@crain.com).|Source:Informationwasprovidedbythecompanies.Toqualify,companiesmustbeprivatelyheldandheadquarteredintheNortheastOhio areaincludingAshland,Ashtabula,Cuyahoga,Erie,Geauga,Huron,Lake,Lorain,Mahoning,Medina,Portage,Stark,Summit,TrumbullandWaynecounties.Companiesmusthaveatleast$5millionin revenuein2023.Franchisees,regulatedbanks,utilities,realestatedevelopers,realestateinvestmenttrusts(REITS)andsomeholdingcompanies(suchasthosethatprimarilybuy/sellothercompanies/ large assets) were excluded.

See much more at CrainsCleveland.com/data

ARTIFICIAL INTELLIGENCE

High-tech balancing act

How the power, promise and potential peril of AI is being explored in Northeast Ohio

You’re likely already using arti cial intelligence, maybe without even knowing it, from the personalized social media feeds you see to the spam your email immediately shunts to a trash folder and the Google answers you search.

But the future promises more: Arti cial intelligence is poised to revolutionize our lives at home and across industries at work, in

schools and for governments.

e relentless march of AI is unlikely to leave any business untouched, even as companies and industries are just beginning to explore the potential of its innovation.

As change sweeps in, AI implementation requires a balance between understanding opportunities, mitigating risk and knowing how — and when — to get on board, said observers and experts interviewed by Crain’s.

“Most businesses think they are behind

— the rockets are taking o and they’re not ready,” said Lakewood entrepreneur and data scientist Cal Al-Dhubaib.

“ e advice I give is nd somewhere small where you can start to practice that muscle. Don’t get intimidated, but nd an area that works and build that ywheel,” he added.

e power and promise of AI — along with its potential for peril — are being tackled across Northeast Ohio in ways large and small. Here’s a look at how it is being put into practice.

Everyday tasks, at work and at home

e ability to mimic human conversation and perform routine tasks is making AI-powered chatbots a game-changing tool for customer service. Businesses using chatbot platforms like ChatGPT will deliver seamless support that reduces wait times and cuts staing costs.

ChatGPT is an example of generative AI, which creates user-prompted text, images and code from large pools of existing data. e platform utilizes natural language to answer your simple inquiries or to con rm your order. Some of those automation tools help the company assist you better, integrating with the company’s software to create a more e cient and streamlined work ow, said Al-Dhubaib, founder of Pandata, a startup that designs and builds machine learning and AI solutions for corporations and nonpro ts.

Pandata's specialization in high-risk environments such asnance and healthcare led to its acquisition earlier this year by Further Worldwide, an Atlanta-based AI consulting practice.

Meanwhile, AI algorithms parse consumer browsing history to suggest relevant products, music or movies across a range of popular social media platforms. e technical aspects of AI should not dissuade even small businesses from implementing the technology, Al-Dhubaib said, and there are programs that can create logos or product images, virtual assistants to write emails and create presentations, or ways to integrate programs to draft documents and answer questions.

Even tightly controlled industries such as nance are embracing arti cial intelligence to process credit scores and risk assessments.

“Financial services are somewhat of an outlier, as they handle a lot of documentation and are held to strict regulatory standards,” Al-Dhubaib said. “ is has forced AI in nance to mature faster than in other industries, with a focus on compliance and security.”

Large-scale manufacturing

Organizations across all elds are rapidly adopting AI, according

“In healthcare, AI-driven clinical summarization could streamline physician work ows, andnancial services are starting to use AI for customer-facing interactions,” Al-Dhubaib said. “ e caveat here is that any gains depend on companies making the right governance investments to manage risks properly.”

to

ndings from the McKinsey Global Institute, the research arm of management consulting rm McKinsey & Company. In a survey released earlier this year, about 65% of respondents said they are regularly using generative AI –nearly double the percentage re-

ported from the year before.

Expectations for the technology remain high, with three-quarters of respondents predicting that AI will signi cantly change their industries. Organizations also reported bene ts including reduced expenses and increased income.

e rise of digital innovations including robotics and arti cial intelligence has transformed manufacturing, heralding an Industry 4.0 era of high-tech training and career opportunities.

Continued on next page

Cleveland’s Manufacturing Growth Advocacy Network (MAGNET) stands at the forefront of working to integrate AI into he eld. Their headquarters aims to showcase an exciting industry through education and community outreach, including school tours. | GUS CHAN

Want to move forward with AI?

Here’s 5 principles to

The promise of AI is everywhere you look — headlines touting breakthroughs, productivity gains and dramatic changes to how we work. Klarna made a splash earlier this year when its AI-powered chatbot replaced the work of 700 individuals and, just recently, its CEO announced plans to reduce headcount to 2,000 by the end of 2025.

Those are some bold claims, and many leaders find themselves struggling with the question: How can we make AI work for us and not get caught up in the hype?

Organizations that succeed with AI respect the challenges that come with deploying it at scale. Done right, AI can be transformative. Done wrong, it can become an expensive experiment that leaves businesses disillusioned.

A business case for AI literacy

Beyond flashy headlines and eye-popping productivity numbers, there’s the financial reality of adoption. For instance, many companies are considering AIpowered tools like Microsoft's copilot solution, which costs $30 per user per month. Scale that across thousands of employees, and you're looking at a significant, multimillion-dollar investment. CFOs and CIOs are rightly asking themselves: What is the return on this investment?

Some companies, like Visa, have rolled out AI across the enterprise with noticeable success, while others pilot it with a few hundred users, only to roll back licenses after realizing they’re not seeing enough value.

What makes the difference? It’s the investment in preparation.

AI doesn’t operate in a vacuum; success requires preparing both staff and organizational processes at three levels:

AI safety: Employees need to understand how to use AI safely, how to protect sensitive data, and how to remain compliant with regulations.

AI literacy: Teams need to know when to trust AI systems and when they’re likely to fail.

AI readiness: At a role-specific level, teams need to understand how to use the right tools with a clear understanding of how AI complements, not replaces, their expertise.

Teams empowered to use tools effectively and equipped with the resources and incentives to master these skills are far better positioned to innovate and achieve. Many of our clients

who experience success with these tools now require completing formal training before approving an AI copilot license.

Be careful what you wish for

Using Generative AI without the right knowledge is a sure way to get to the wrong answer faster or to get the right answer to the wrong question.

Here are some common pitfalls: Confabulation: Often referred to as hallucination, this is when the AI model produces results that look plausible but are incorrect.

Over-reliance: Some lawyers learned this lesson the hard way earlier this year using ChatGPT, which produced defenses that looked real but cited entirely fabricated precedents. The American Bar Association responded with guidelines requiring human oversight and quality control when using AI.

Prompt hacking: Language models can be coerced into producing unexpected results either intentionally or by making requests that are out of scope (like asking a customer service chatbot to entertain you with poetry or to imitate a fictitious character).

Deep fakes: Digitally created images, audio and video that increasingly look lifelike and can replicate existing humans. Cybercriminals will increasingly take advantage of these tools. Without a clear understanding of these pitfalls, organizations risk falling into costly traps. To mitigate these risks, teams need a strong foundation in AI literacy and domain expertise, as well as appropriate safeguards.

Don’t replace jobs, reimagine them

Too often, the narrative around AI centers on job displacement. The reality is far more exciting: AI, when used effectively, reimagines jobs by shifting people’s focus from repetitive, low-value work to tasks that demand human creativity and insight.

I’ve seen teams initially shun AI because it didn’t match their intuition on a particular task. But once they experienced how AI could help them complete tasks faster and more reliably and, more importantly, to know when to intervene and override AI results, they felt empowered. The goal of AI is not to diminish human input but to amplify it, ensuring that humans stay at the core of decision-making.

consider.

It's

easier to add than subtract

There are two value levers when it comes to AI adoption: Incremental efficiencies: AI can automate mundane tasks, save costs, reduce effort or improve quality — all provide incremental boosts to your bottom line. However, there’s a limit to how much can be gained by simply cutting costs or optimizing workflows.

Scaling value: The true potential of AI is in scaling value, creating experiences that grow customer loyalty, increase lifetime value or unlock new capabilities. Unlike cost-cutting, this value creation comes without a ceiling.

Efficiency plays can be very exciting. Around 25% of all code produced at Google in 2024 was AI-based. They weren’t using AI to reduce developer headcount; instead, it allowed them to ship product updates faster and stay ahead of the competition. But there’s only so much you can add by subtraction.

Generative Search for consumer products is an example of a scaling opportunity that merges the power of human language with traditional search filters. This allows consumers to naturally ask about products, shortening the purchasing timeline and boosting confidence.

Measure success in outcomes

As businesses continue adopting AI, one of the most important lessons is learning how to measure success. Too often, organizations default to usage metrics, such as hours saved or number of users, but these numbers don’t tell the full story.

To understand if AI is truly working for your business, you need to look at outcomes. Are AI initiatives increasing customer loyalty? Are they contributing to revenue growth? Are they shortening response times and improving customer satisfaction? These are the metrics that matter — not just how often a tool is used or what time it saves, but what tangible benefits it brings. AI has the potential to transform businesses, but only if approached thoughtfully. Many of these pitfalls and tactics apply to other emerging technologies and quality control processes. The right tools aren't cheap; they need investments in upskilling, oversight and consistent quality.

My advice for 2025: Start simple, start small, start boring. Tackle projects where it's easier to demonstrate wins and value to build trust and capacity within your team. Embrace the mundane aspects of AI — making it 'boring' is what makes it dependable, safe and profitable.

From previous page

Cleveland’s Manufacturing Growth Advocacy Network (MAGNET) stands at the forefront of this work — the organization’s headquarters in Cleveland’s Hough neighborhood aims to showcase an exciting industry far from the “dark, dirty and dangerous” environs of decades past.

Michael O’Donnell, MAGNET's vice president of operations, points to modern manufacturing operations in a clean environment where workers’ specialized skill sets are increasing apace with advanced technologies.

“In the old days, you’d see temperatures, flows and pressures on a machine, and have to adjust a knob,” said O’Donnell. “Now you can feed information into a device and it builds a model where the AI is looking for patterns.”

AI analyzes sensor information, identifying machine defects to prevent faulty parts from being produced. Further, the innovation analyzes microscopic tool path data to identify the most efficient routes for specific tasks.

Yet, incorporating AI into operations requires more than flipping a switch, O’Donnell said. Smaller manufacturers in particular should initially implement basic machine learning models to identify data patterns and predict potential failures. Prioritizing predictive maintenance or developing a centralized problem-solving repository are additional options.

“You can get real-time feedback around a problem or customer complaint,” said O’Donnell. “You can type that in and find out if that complaint has ever happened before. You’ll see what you’ve done in the past with customers of that type.”

Some producers are reluctant to bring AI to their shop floor, citing everything from job loss to security concerns to a common distrust of new technology. Ethan Karp, president and executive director of MAGNET, said AI will need trainers and operators, along with skilled workers open to learning the latest innovations.

Safeguarding sensitive data will become equally paramount for companies integrating AI into their processes, Karp said.

“Remember, if you put information out on IT, it’s available, so be careful not to have things like profit levels and customer names out there,” he said. “That’s the fear around ChatGPT and things like that. They have policies about not sharing data that you can take at face value. But if they get hacked, your information is sitting there.”

In the classroom

Artificial intelligence is transforming the educational landscape for students and teachers alike. Adaptive learning platforms are tailored to individual learners, while student information systems streamline scheduling, enrollment and other timeconsuming tasks.

More than 40 departments at

Case Western Reserve University are employing generative AI as a teaching tool or experimenting with how the technology fits a particular class or curriculum.

“It’s helping students learn assignments, kind of like a virtual teaching assistant,” said Jeffrey Capadona, a biomedical engineering professor and vice provost for innovation in education at Case Western. “We haven’t switched over to AI as a university, but early adopters are seeing how far we can push it before it breaks.”

Last summer, Capadona taught a graduate-level grant-writing course where students edited papers with ChatGPT or similar generative AI programs. Among other benefits, the exercise dispelled student fears about sharing their work.

“That (fear) can hold students up,” said Capadona. “AI helps with prompts and gives them as many iterations as they want. Students

“The advice I give is nd somewhere small where you can start to practice that muscle. Don’t get intimidated, but nd an area that works and build that ywheel.”
Cal

can have di culty digesting data, so where AI has potential is not just accessing information, but helping kids understand what’s a priority and where that information is best used.”

However, arti cial intelligence cannot replace critical thinking, which Case Western emphasized in an AI-focused syllabus this summer. Although the university “embraces AI in education to prepare students for the workforce,” all work must be completed without the technology’s assistance, the syllabus read.

Learners can use basic tools

how to responsibly use it. It’s like teaching children about threats, where you’re constantly parenting them to interact responsibly with anything in the world.”

Government guidelines

AI is not limited to the classroom or shop oor — the innovation is a means for lawmakers to improve decision-making, enhance e ciency and better serve their constituents, said Katrina Flory, state chief information ocer with the Ohio Department of Administrative Services.

Late last year, the department released IT-17, a policy framework regarding AI use across state agencies. e policy is centered around ve fundamental principles, among them stakeholder engagement and fairness in use.

A multi-agency AI Council will oversee statewide deployment. Ohio Lt. Gov. Jon Husted is a longtime AI supporter, utilizing hightech tools to eliminate repetitive or outdated language from the state’s administrative code. Processing permits and licenses are other tasks best handled by AI, but machine learning can also inform policy decisions through rapid analysis of citizen feedback.

“ e use cases we have today are public-facing chatbots at the BMV or for people using SNAP or Medicaid,” said Flory. “We’ve advanced in translation technology to make sure citizens are getting the services they need.”

Keeping “humans in the loop” is a key feature of AI solution development in Ohio, said Vanitha Zacharias, an administrator with the state O ce of Information Technology. State agencies will be implementing training programs that address data input restrictions and transparency in AI usage.

Training AI on Ohio's diverse population will, ideally, minimize prejudice, said Zacharias.

“ e human element is very important to ensure that these models are not biased,” she said. “AI should be monitored through its life cycle so it's inclusive to all people using it.”

In a world of deep fakes, faulty images and fake news, Ohio must also be transparent with residents about the risks possible, said Flory.

Journalists navigate reporting on, using AI

ere has been a lot of talk recently about articial intelligence and journalism. Some newsrooms are embracing it boldly. Others not so much. We know for sure that AI is, as the legendary lmmaker George Lucas said, “inevitable.”

As the founding editor of a newsroom based around training and paying Greater Clevelanders to take notes at public meetings, I am working to ip the traditional news model to better take its direction from the questions and concerns of everyday people.

To that end, we’ve trained more than 600 people from across the county to be Cleveland Documenters and take notes at public meetings.

I bristle at the question I’m sometimes asked, “Can’t AI do that?”

People we’ve trained tell us it’s brought them joy to be part of the newsgathering process. Others have said being part of our community of Documenters has reduced social isolation, increased their con dence and ultimately led to more civic engagement and participation.

AI can’t do that. But AI can support that work.

We regularly send Otter.ai, the transcription tool, to meetings we can’t attend in person. Our partners at the nonpro t newsroom Open Campus built a ChatGPT tool to surface key points from large reports. at helped our higher education reporter earlier this year as she reported a breaking news story about a local university.

Mike Reilley, who founded the AI tools site e Journalist’s Toolbox, has compared AI to the internet in the ‘90s. Mike was part of the team that launched ChicagoTribune.com in 1996. I took my rst AI training with him in August.

He started the training

with transcription tools. Many journalists are fairly comfortable with them and use them regularly to transcribe interviews. But as the session continued, Mike dove into more challenging AI issues like image generation. He showed images of a coal miner that he created using an AI tool. His rst image was distorted and clearly computergenerated.

But, Mike said as he ipped through subsequent images, “While we sleep, AI is learning.”

Within a few months, the same prompt in the same AI tool generated an image indistinguishable from a photograph. e exercise highlighted how we must be thoughtful as we think about how to use AI in journalism.

A small committee of us at Signal Ohio are working to do just that as we develop an AI policy for our newsrooms. We know our reporters and Documenters are already using AI to transcribe interviews, but there are opportunities for us to use AI more e ectively to support our work so we can better listen to and connect with the community. We know that clearly crediting AI use is crucial to maintaining trust with the community. So, too, is making sure that a human reviews anything generated by AI before publishing.

Luckily, we are getting help from the Online News Association and using a resource from the Poynter Institute as we draft guidelines. I’ll also be joining a cohort supported by the American Journalism Project to learn more about using AI technology to enhance our newsroom’s reporting capacity.

rough all of this, we have to keep people — Greater Clevelanders, our Cleveland Documenters, our reporters and our editors — at the center of our work. Because, of course, AI can’t do that.

for instructor-approved tasks, though guidelines for AI applications vary from class to class. Rather than posing a threat to educators, AI o ers opportunities to enhance their work. In one recent example, Case Western incorporated HoloLens technology to facilitate three-dimensional brain mapping for medical students, Capadona said.

“We’re bringing students into a virtual problem so they can play within that space,” he said. “Otherwise, we can’t be in a place where we just ignore arti cial intelligence — we have to teach kids

“We’ve been very speci c in saying our intent is not to replace jobs but to give tools to our workforce,” Flory said. “ e goal is not to not get complacent and keep a human in the loop.”

Although an AI-driven future is certain, arti cial intelligence is not magic — in fact, Al-Dhubaib guarantees these models will make their share of mistakes. To that end, human involvement is crucial to ensure that AI is being used responsibly.

“Instead of expecting perfection, the focus should be on understanding how to use AI as a ‘co-intelligence’ alongside humans, building in oversight and knowing when to trust it,” AlDhubaib said.

Lila Mills is editor-in-chief of Signal Cleveland.
Al-Dhubaib is head of AI and data science at Further in Cleveland
A board shows data from cars constructed by CMSD Digital Arts High School students on the plant oor of MAGNET. | PHOTOS BY GUS CHAN
Jennie Becker, manufacturing experience designer at MAGNET, demonstrates a robotic arm to the students.

AI gives higher education the opportunity to adapt

Arriving two years ago in an environment of fading public perception of the value of a college degree, ChatGPT and other Large Language Model (LLM) AI systems stormed onto the scene, offering the unprecedented ability to analyze, learn, understand and solve problems.

Higher education institutions have a history of adapting quickly to technological advances such as the personal computer and the internet, and the response to AI will undoubtedly also occur rapidly and with great prospects for innovation.

These AI systems offer new opportunities for educators to create sophisticated curricula tailored to individual student abilities and interests. At the same time, the powerful capabilities of LLM models challenge traditional teaching methods by allowing students to quickly complete assignments from research papers to computer code with little or no original effort.

Orienting toward “authentic assessment” allows educators to use the sophisticated potential of AI systems while addressing these concerns. Authentic assessment focuses on designing tasks that simulate real-world challenges and involve critical thinking and collaboration.

Brian Ray is the Leon M. & Gloria Plevin Professor of Law and director of the Center for Cybersecurity & Privacy Protection at Cleveland State University.

Dr. Patricia Stoddard Dare is a professor of social work and women’s and gender studies at CSU.

Dr. Joanne Goodell is director of the School of Education and Counseling and a professor of mathematics education at CSU.

For example, written term papers that AI can easily generate are being replaced by group assignments that aim to solve community problems.

Within an authentic assessment framework, AI can enhance intended learning outcomes. Rather than prohibit students from using LLM models, faculty can develop guidelines that encourage students to use these tools responsibly to improve their work.

LLMs notoriously make up highly realistic facts when used directly for research but excel at suggesting edits to the original text. Likewise, while it is risky to rely on these tools for original research, they can provide superb summaries of lengthy articles and even allow a student to interact with a source or set of sources by asking the LLM about key conclusions, research methods and sources cited in a work.

Critically, these kinds of assignments offer opportunities for students to see first-hand the substantial limitations of AI and work to examine and address them. Faculty can prompt students to examine how LLMs frequently reflect the same biases as a society and often can produce results that reinforce or magnify those biases.

In addition, when using a publicly available LLM, students must learn to consider the potential privacy risks of providing sensitive information to these systems. This is especially important for students training for professions like healthcare and law that frequently work with confidential client information.

CSU has faculty across multiple disciplines with deep expertise in data science and AI, and several prominent research centers, including the CSU T.E.C.H. Hub, the Center for Cybersecurity and Privacy Protection, and the Center for Applied Data Analysis and Modeling. CSU faculty and students partner and collaborate with government and private industry.

These projects develop and deliver innovative solutions in areas like big data, secure machine learning systems, deep neural networks, artificial intelligencebased communications and image and video data analysis.

The uniquely transdisciplinary approach of the CSU T.E.C.H Hub fosters collaborations across campus including diverse disciplines like law, social work, engineering, healthcare, education and urban studies.

Faculty and students are pursuing AI-related applied research and policy proposals ranging from a pilot AI-enabled illegal-dumping system for the City of Cleveland to a national research grant to train faculty and students on contemporary artificial intelligence (AI) research related to the Department of Energy and even micro-grants to fund student AI startups.

The T.E.C.H. Hub also sponsors an annual AI Symposium that covers the waterfront of AIrelated initiatives in teaching, research, service, ethics, infrastructure and workforce.

How Ohio is using AI to innovate government, schools, workplaces

Artificial intelligence is transforming work, education and governance to better serve Ohioans. Even before the introduction of ChatGPT, our team, through the Common Sense Initiative (CSI), began leveraging AI to drive regulatory reform.

on debt, making AI education both accessible and practical. To date, TechCred has awarded 2,758 AI credentials to 261 employers, equipping Ohioans with the tools needed for the jobs of tomorrow.

Ohio launched a groundbreaking initiative using AI to streamline the state’s Administrative Code. This effort removed 2.2 million words of unnecessary regulations and over 900 outdated rules. AI tools identified over 400 instances where regulations could be modernized, such as eliminating outdated communication methods and unnecessary in-person requirements.

Corresponding statutory updates are expected to save the state $44 million and 58,000 hours of labor over the next decade. By adopting efficient, electronic alternatives, Ohio has made its government more agile, cost-effective and citizenfocused.

By streamlining government processes and equipping educators and students with the tools to succeed, Ohio is positioning itself as a national leader in AI readiness and innovation.

Ohio’s AI leadership extends to workforce development. Through the TechCred program, AI-related credentials have become one of the fastest-growing categories. Employers use this program to upskill their teams for a rapidly evolving workforce. The program’s “earn while you learn” model allows Ohioans to gain in-demand skills without taking

Ohio is leading the way in AI literacy for K-12 education. Recognizing the transformative potential of AI, InnovateOhio partnered with the AI Education Project (aiEDU) to create the AI Toolkit for Ohio’s K-12 Schools. This comprehensive resource provides guidance for policymakers, superintendents, IT staff, teachers and parents on implementing AI thoughtfully and responsibly.

The toolkit addresses critical topics such as student privacy, data security, and ethical AI usage while preparing students for AIdriven careers. Viewed over 30,000 times since its launch, the toolkit reflects a strong demand for reliable AI education resources.

This initiative built on the success of three AI forums held in 2023, which attracted over 750 attendees and highlighted the need for trustworthy guidance in K-12 education. While AI has been around for decades, the arrival of accessible generative AI tools in late 2022 brought these technologies directly into students’ daily lives. The AI Toolkit equips local schools to develop policies tailored to their unique needs, ensuring that Ohio students are well-prepared to thrive in an AI-driven world.

Embracing what we learned from these forums, in May 2024, Ohio established the AI in Education Coalition. This collaborative

effort brings together business, education and workforce stakeholders, including the Ohio Business Roundtable and the Ohio Department of Higher Education. The coalition has convened multiple times to develop actionable recommendations for integrating AI into the education system. Building on this work, we recently launched Ohio’s AI in Education Strategy.

This strategy outlines key steps Ohio is taking to prepare students for AI-driven careers: Encouraging school districts to develop and implement AI policies for students and teachers. Supporting educators in earning AI credentials through programs like TechCred.

Integrating AI concepts into Ohio’s academic standards to ensure relevance in the modern workforce.

Since its release, the strategy has attracted significant interest, with approximately 1,500 page visits in just the first five days. As AI continues to transform every aspect of our lives, preparing young people to navigate and excel in this new reality is essential. By equipping students with AI literacy and credentials, Ohio is building a skilled talent pipeline that will attract employers, drive innovation and fuel economic growth.

Ohio’s leadership in AI showcases our readiness not just to embrace the future but to shape it. Through government innovation, workforce development and forward-thinking education initiatives, we’re demonstrating how AI can serve the common good.

Together, we’re building an AIready state that works smarter, innovates faster and wins.

Jon Husted is lieutenant governor of Ohio.

Transforming the ballpark experience

Nearly complete, the Progressive Field renovations will deliver big boost in fan experience at the home of the Cleveland Guardians

Tim Salcer still remembers that feeling of awe he had the rst time he went to what was then Jacobs Field in 1994, the year it opened. e new ballpark drew record crowds, through a combination of the best baseball team in Cleveland in 40 years and an enhanced fan experience.

More than 30 years later, the ballpark that’s now called Progressive Field is the ninth-oldest in Major League Baseball, and some of its contemporaries have already been replaced. Progressive Field is nearing the conclusion of a two-year, $200 million renovation to keep people coming to the ballpark and having fun.

“ e amazing thing about the ballpark is how it’s stood the test of time,” says Salcer, now the team’s senior vice president of sales and service. “Our job is to determine how we bring the ballpark into the future and make our commitment to Cleveland, but also make our commitment to fans.”

Salcer joined the team in 2014, prior to another big renovation. at one

drew on the city’s food scene with local vendors in the right eld and rst base concourses. But the big hit in that restoration project was the Corner Bar down the rst base line.

“ e Corner Bar really came to life almost immediately,” Salcer says, noting that it coincided with the team’s ascent, culminating in a trip to the 2016 World Series. “ ere’s an evolution in the ballpark. How do you create spaces for fans to engage with the game di erently and in large groups?”

e other is the Terrace Garden down the third base line, above the Terrace Club. Opened as an exclusive dining area with the ballpark in 1994, it will become the Terrace Hall, a bar comparable to the Corner, and North Coast Social boxes, a new premium seating location.

North Coast Social overlooks le eld with a stunning view and is designed for small groups of ve to 11 people looking for a semi-private, openair space. is space also includes access to an indoor bar complete with all-inclusive food, beer, wine and non-

“Our job is to determine how we bring the ballpark into the future and make our commitment to Cleveland, but also make our commitment to fans.”

- Tim Salcer, Cleveland Guardians’ senior vice president of sales and service

In 2024, the team added two new plazas. One is the Paul Davis Pennant District in right eld, which replaced the “shipping containers” installed in 2015 – giving rise to a conspiracy theory that the Guardians hit for more power because the area was opened up to create a wind tunnel.

alcoholic beverages, plus dedicated premium parking.

Premium seats are also a priority in this renovation. Behind home plate will be the Carnegie Club, the ve rows closest to the eld, which will include elevated food options and

access to a private club. e dugout suites at eld level will have their roofs removed, making seats open air, but also with access to a private club. Salcer touts the team’s success with premium o erings, noting that twothirds of the new Carnegie Club is already sold out. e team is 15th in Major League Baseball in corporate partnerships, and 12th in premium o erings. For context, Salcer points out that the team is in the league’s 29th biggest market.

“We ask ourselves how we continue to create that compelling fan experience that is going to meet the needs of

every fan that comes to the ballpark, be it a die-hard fan, or someone who doesn’t know much about baseball,” he says. “We talk about uniting and inspiring the city, and I think our ballpark does that.”

To learn more about the Progressive Field transformation, visit www. cleguardians.com/renovations

The Carnegie Clubnorth coast social

North Coast Social adds a new premium seating location overlooking left eld.

Klutch to open largest cannabis facility yet in Cuyahoga Falls

Cuyahoga Falls is about to get a large marijuana facility that is expected to supply product to medical and recreational dispensaries across the state.

Klutch Cannabis is working on construction at 1972 AkronPeninsula Road, converting a former packaging plant on the city’s border with Akron, where it plans to begin operations next year, said Klutch founder and CEO Adam Thomarios.

space than the 83,000 square foot facility the company operates on Home Avenue in Akron, which will remain in operation, Thomarios said.

The Summit County Development Finance Authority is helping to finance the project with $6.5 million in bond financing, the authority’s 50th financing to date.

The DFA put the total investment in the new Klutch facility at $34 million, but Thomarios said that number is not quite accurate.

“There’s a lot of equipment that goes into it … it could be lower than that, or it could be higher,” said Thomarios, who declined to give a figure on the project’s total investment.

“We supply to the entire state. Most every dispensary in the state has purchased or is purchasing our product.”
Adam Thomarios, Klutch Cannabis founder and CEO

“We’ve been under construction for months,” Thomarios said. “We’ll be occupying the building in the first quarter of next year. We’re not processing there, it’s a cultivation-only facility.”

At 117,000 square feet, it will be the company’s largest facility for growing marijuana and could eventually have more growing

Klutch was an early player in both Ohio’s medical and recreational markets for marijuana and has relationships with other marijuana companies around the state. Though it has only two retail stores so far, it produces product for more than 100 stores owned by other companies across Ohio. Federal law prohibits it and other companies from shipping marijuana products across state lines.

“We supply to the entire state. Most every dispensary in the state has purchased or is purchasing our product,” Thomarios said.

The new facility will employ about 80 people at its cultivation facility by the end of next year but may end up housing a few more Klutch employees if and when the company moves some of its offices there, as Thomarios said he plans to do. Klutch currently employs about 250 people in total.

At present, Klutch is working to get the building into shape and outfitted with the extensive plumbing and electrical systems it will need to do indoor growing.

Finding the right space — in the right place and with a city that wants it — took time, but Cuyahoga Falls officials have been cooperative and good to work with, Thomarios said.

“Ceiling heights, the municipality, the size and room for more expansion, power, water, sewer … all of that comes into play when you select a site,” he added.

The new cultivation facility is off the beaten path and far from Cuyahoga Falls’ busy Front Street business and entertainment district. It’s in a part of town many visitors likely will not even recog-

Compassion, Advocacy and Leadership

Congratulations to Cathey Lozick, recently recognized as a Distinguished Fellow at Cleveland Clinic.

The award recognizes Cathey’s dedication to the mission of Cleveland Clinic and the significant impact she has made through her family foundations’ generosity.

Cathey’s compassion has impacted patients throughout Cleveland Clinic. Most recently, a gift from The Lozick Family Foundation funded the construction of the Hillcrest Hospital Lozick Cancer Pavilion with an emphasis on creating a patient-centered healing environment and providing navigators to help guide each patient throughout their cancer care journey.

Thank you, Cathey, for making a difference in the lives of so many.

nize as being in Cuyahoga Falls, due to the complicated border between it and Akron in and around the Merriman Valley.

Thomarios said the investment is a vote of confidence in the continued growth of Ohio’s market for recreational marijuana and an exciting development for Klutch.

“This has been a long time in the works, planning, engineering and designing it,” he said. “We’re excited for our growth and excited

about the retail growth in the state. We’re looking forward to Ohio advancing as far as the advertising rules go.”

That said, the size of the facility, which Klutch will not all use at once and plans to grow into, will likely accommodate the company’s needs for the foreseeable future.

“This should be good for a bit,” Thomarios said. “We’ll see what the market looks like. We’re also opening additional retail stores.”

Workers tend to marijuana plants at Klutch Cannabis’ current Akron cultivation facility on Home Avenue, which includes 83,000 square feet of growing space. KLUTCH CANNABIS

Downtown Cleveland scores wins toward “reimagining” goals

With a goal of making downtown Cleveland a model 15-minute neighborhood, Downtown Cleveland, Inc. leads initiatives bringing residents, employers and visitors downtown

Last year, Downtown Cleveland, Inc. (Downtown Cleveland)

President and CEO Michael Deemer stood with Cuyahoga County Executive Chris Ronayne and Mayor Justin M. Bibb, as the mayor unveiled Reimagining Downtown, a vision for a stronger downtown with better accessibility, safety, public spaces and access to Lake Erie and the Cuyahoga River.

Progress is evident, with more on the way in the coming year.

Today, downtown Cleveland ranks first nationally for office conversions and in the top 10 for visitor and workforce recovery. Twenty-seven storefront businesses opened in 2024, over 300 free activations took place in public spaces, smart security cameras were piloted and 54 trees were planted.

“We’re well on our way to being a vibrant 15-minute neighborhood –with density, walkability, amenities and plans – but we’re not done yet,” says Deemer.

“In 2025, our Greater Downtown Vision, a landmark initiative uniting downtown’s many development plans, will come to life,” notes Deemer, citing the Bedrock riverfront plan, Canal Basin Park, Progressive Field’s renovations and Playhouse Square’s purchase of the Greyhound Station as examples. “This vision prioritizes connecting all of these projects, with a focus on retail corridor improvements, greenspace activation and creating a public realm that encourages exploration from one end of downtown to the other.”

Central to the city center’s success is its residential population, which has increased from 12,000 in 2012 to 23,000 in 2023, thanks in part to former office buildings and retail space – like The May on Public Square – being converted into residences. Others became hotel space, drawing visitors back to near prepandemic levels, Deemer says.

This transformation is part of Downtown Cleveland’s approach to ensuring the core continues fueling economic growth, not just for Cleveland but the entirety of Northeast Ohio.

That includes enhancing quality of life and the perception of safety. Like organizations nationwide, Downtown Cleveland has keyed in on improving safety, adding Neighborhood Safety Specialists into the Clean and Safe Ambassadors program, launching a Court Watch program, and establishing cross-district partnerships to improve clean and safe services, 7 a.m. to midnight, daily.

“Companies are seeing progress and bringing workers back,” Deemer adds. “We’ll encourage this trend and ensure we create a place where workers want to come.”

One example is the new SherwinWilliams headquarters, which should be move-in ready early in 2025.

“It’s symbolic, in a post-pandemic world, to see a Fortune 500 company completing a tower that will bring thousands to Public Square daily,” Deemer says.

As more people come downtown, increasing retail presence and promoting existing retail are at the forefront of Downtown Cleveland’s

strategy. The organization has engaged LAND Studio to design the necessary streetscape improvements with input from property owners, businesses and residents.

“This shift towards experiential retail, food and beverage is part of the evolution of downtowns,” he says.

“The more density we can build with residents and visitors, the stronger the retail will be.”

Retail strategy, safety investments, placemaking efforts and the Greater Downtown Vision are advancing the core’s transformation into that model 15-minute neighborhood. Deemer says key to this progress is the unprecedented collaboration with the City of Cleveland and Cuyahoga County – from urban planning to safety improvements.

“We don’t do this work alone. We rely on Downtown Champions, including our board, downtown residents, public officials and our staff,” shares Deemer. “But the fact is that everyone who lives, works or visits downtown has the power to be a champion – to advocate on behalf of downtown Cleveland and to drive economic growth. So, expect to see us recruiting more downtown champions to support the Greater Downtown Vision.”

To learn more about the work of Downtown Cleveland Inc., visit www. downtowncleveland.com.

Cleveland Clinic and MetroHealth score

high for maternity care

irteen Ohio hospitals earned high marks in U.S. News & World Report’s 2025 Best Hospitals for Maternity Care rankings.

ree Cleveland Clinic hospitals (Fairview, Hillcrest and Mercy in Canton) and MetroHealth Medical Center received the “high performing” distinction in the most recent edition of the ratings, which were released Tuesday, Dec. 10.

e media company evaluated data submitted by 817 hospitals across the country, including 29 in Ohio. In all, 414 obtained the high-performing designation.

Only one Ohio hospital — Licking Memorial Hospital in Newark — was dubbed a Maternity Care Access Hospital, or a hospital providing maternity services in areas that would otherwise not have adequate access to them.

ese hospitals had to meet certain geographic and quality requirements.

"Cleveland should be proud to have three hospitals recognized for their exceptional maternity care,

along with the 13 total medical centers recognized in the entire state of Ohio,” Jennifer Winston, health data scientist at U.S. News & World Report, said in a statement to Crain’s. “ is achievement highlights the Buckeye State’s commitment to providing the highest quality care for mothers and newborns."

With 13 health care providers, Ohio has the 12th most hospitals on the list out of the states.

U.S. News rated hospitals based on NTSV cesarean delivery rates; severe unexpected newborn complication rates; routine vaginal birth after cesarean delivery rates; commitment to exclusive breast milk feeding; episiotomy rates; birthing-friendly practices, and reporting on racial/ethnic disparities.

U.S. News, which started assessing maternity care in 2021, found that high-performing hospitals have 44% lower rates of severe unexpected newborn complications and 22% lower rates of C-sections.

e other Ohio hospitals that made the list:

Crawford Hall

Now Open

◗ Soin Medical Center (Beavercreek)

◗ University of Cincinnati Medical Center (Cincinnati)

◗ Ohio State University Wexner Medical Center (Columbus)

◗ Kettering Health Dayton (Dayton)

◗ Miami Valley Hospital (Dayton)

◗ Kettering Health Main Campus (Kettering)

◗ Atrium Medical Center - Middletown (Middletown)

◗ Licking Memorial Hospital (Newark)

◗ McCullough-Hyde Memorial Hospital-TriHealth (Oxford)

U.S. News says the list’s purpose is to improve transparency

around maternity services for uncomplicated pregnancies and to encourage health care providers to enhance their maternal care performance.

e company puts out a slew of other lists related to health care, including Best Hospitals and Best Children’s Hospitals. e Clinic was one of 20 hospitals in the U.S. to make the 2024-2025 Best Hospitals Honor Roll.

Over the summer, the Commonwealth Fund, a health care research foundation, ranked the Buckeye State No. 29 out of the 50 states plus Washington, D.C., for women’s health and reproductive

150,000

care. e report found Ohio had one of the worst infant mortality rates in the country (44 out of 51) but one of the stronger maternity care workforces (22 out of 51).  Ohio had an infant mortality rate of 7 per 1,000 live births in 2021, according to the state health department’s latest report. Black infants are more than two and a half times more likely than white infants to die before their rst birthday.

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Photo by Mark Watt / Properties Magazine
square feet, Crawford Hall is the largest academic building at Kent State University
Cleveland Clinic Fairview (top left), Hillcrest (bottom left) and Mercy (right) hospitals received the “high performing” distinction for maternity care in U.S. News and World Report’s rankings. | CLEVELAND CLINIC

Community centers concerned about pushback to 340B program

Pushback against a decades-old federal program that provides savings on prescription drugs to certain hospitals and health clinics has some Ohio o cials concerned about the rami cations it could have on clinics providing care to medically underserved populations.

Drugmakers have been urging for changes to the 340B Drug Pricing Program, which allows qualifying hospitals and clinics to purchase drugs from pharmaceutical manufacturers at a steep discount.

Eli Lilly and Johnson & Johnson are among a growing number of manufacturers that have introduced restrictions on the 340B program that limit the number of contract pharmacies a covered health care provider can use to access discounted medications.

But leaders at federally qualified health centers (FQHCs), community-based clinics that provide health services to uninsured or underinsured populations, say these changes raise major concerns for the health centers, which operate on thin margins.

“Eighty, 85% of our patients are covered by Medicaid,” said Jonathan Lee, president of Signature Health, an FQHC with locations scattered across Northeast Ohio. “Because that is the lowest paying provider, It's very di cult to make ends meet when you are basically just depending on Medicaid.”  340B, created by Congress in

1992, was designed to alleviate some of the nancial strain of rising drug costs from safety-net health care providers by allowing them to get discounts on drugs from pharmaceutical manufacturers. It enables providers to lose less money when they treat uninsured patients and creates additional revenue for safety-net organizations to carry out their mission, said Dr. Anthony Shih, senior program advisor at e Commonwealth Fund.

However, some drug manufacturers have pushed back on 340B.

Bristol Myers Squibb, Johnson & Johnson and Eli Lilly have led lawsuits against the federal government for blocking them from implementing a new 340B rebate model that would see manufacturers pay rebates to hospitals rather than discounts in advance.

“ e glaring issue is that hospitals are not held accountable for using federal 340B discounts,” said Reid Porter, a spokesperson for the Pharmaceutical Research and Manufacturers of America, a trade association that represents U.S. pharmaceutical companies.

“Too many large hospitals are abusing the 340B program by marking up the prices of medicines to generate massive pro ts even though the program’s intended bene ciaries are true safety-net hospitals, clinics and the low-income and vulnerable patients they treat.”

is year, the Minnesota Department of Health released a rst-of-its-kind report that showed hospitals and health clinics across

Minnesota participating in 340B generated at least $630 million in revenue in 2023, with the largest entities seeing the biggest bene ts from the program.

“Congress can take steps to protect the program and good actors in the healthcare system by requiring all 340B hospitals and their contract pharmacies to pass through 340B discounts to lower the cost of medicines for lowincome and vulnerable patients,” Porter said.

e concern, according to Julie DiRossi-King, president and CEO at the Ohio Association of Community Health Centers, is that community health centers are being “lumped together” with these other 340B-covered entities. FQHCs primarily receive funding through the Health Resources and Services Administration, but programs such as 340B help them stretch their dollars. FQHCs are required by law to use savings from the 340B program

on activities that expand access to care for patients.

e exact impact of 340B varies depending on the FQHC, Shih said. If the majority of a community health center’s patients use a single pharmacy or in-house pharmacy services, then the effects might not be as pronounced. But if they rely on a broad pharmacy network that generates signicant revenue, then it could be signi cant.

“FQHCs are not like large hospitals,” Shih said. “ ey don't actually have the margins or the capital to absorb a lot of this loss in revenue.”

Savings generated by 340B account for 15% of Neighborhood Family Practice’s net revenue, President and CEO Domonic Hopson said. ey make up 25% of the Cleveland health center’s overall employee cost. Hopson said that percentage is even higher at other FQHCs.

Ohio has about 550 FQHC sites, King said. Between 80 and 100 have on-site pharmacies, but the vast majority of them have relationships with retail or independent pharmacies.

At Signature Health, the savings from 340B have made it possible to expand services in dental and prenatal care, Lee said. Ohio is grappling with a statewide dental shortage, and the state has one of

the highest infant mortality rates in the country.

“ e way I would phrase it to somebody is, like, say for the sake of argument, you were making, I don't know, $4,000 a month or $3,000 a month. And all of a sudden, your employer came along and said, ‘You know, we can only give you $2,700 instead of $3,000’ or ‘We can only give you $2,900,’ ” Lee said. “You'd say, ‘Well, it's a $100. A $100 is a $100. I had plans for that.’ ”

Lee said the 340B program is critical for FQHCs like Signature. And that community centers large and small depend on these savings to fund sta and services.

“We're just really looking for some protection to keep the rules of engagement the same,” he said. “We're not asking for more resources. We're not saying, ‘Hey, we want this to be a bigger program’ or anything like that.”

e Ohio Association of Community Health Centers has shown support for two pieces of legislation: Ohio House Bill No. 588, sponsored by state Rep. Adam Holmes (R-Nashport) and Rep. Marilyn John (R-Richland County), and Ohio Senate Bill No. 269, sponsored by Sen. Bob Hackett (R-London).

Both bills would prohibit drug manufacturers from restricting how medication is delivered to 340B-covered entities. Similar laws have been passed in several states, including Louisiana, Arkansas and Maryland.

Holmes described FQHCs as “godsends” to rural areas, where health care access is often limited. He said community health centers are e cient with their dollars and that the services help people who need them most.

Hopson said he understands pharmaceutical companies want more visibility on how 340B savings are used and that they are willing to provide it with guardrails in place to ensure the integrity of the program.

Rose Building, CSU's Rhodes Tower projects lead round of tax credits

Plans to convert the former Medical Mutual downtown headquarters to a mixed-use hotel and apartments project and Cleveland State University's Rhodes Tower conversion both won maximum $5 million allocations of Ohio State Historic Preservation Tax Credits, announced Wednesday, Dec. 11 by Gov. Mike DeWine and the Ohio Department of Development.

“This will be a nice addition to the capital stack,” said Bhavin Patel, a principal of Spark GHC of Solon, which plans to buy two buildings at East Ninth Street and Prospect Avenue from the health insurer for a $100 million project. “The team couldn’t be happier.”

And a lot of Northeast Ohio outfits can share that joy. Clevelandand Akron-area projects landed about 40%, or $24.5 million, of the $56 million in credits the state made available in the 33rd round of awards in the program.

A total of 37 projects will receive support for qualifying projects to put historic buildings to contemporary use while preserving their original character. The state said it estimates the projects in the 33rd round, if they come to fruition, will leverage $715 million in private investment. Projects from Ashtabula

to Cincinnati received the aid, and all are listed in the state news release.

CSU plans to convert the 21-story Rhodes Tower to University Tower for 500 student apartments, renovate the library and add amenity spaces in a $92 million project. CSU’s application for the grant said the 1971-

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vintage tower is now mostly vacant and needs significant upgrading.

The former downtown headquarters of Medical Mutual, which moved to Brooklyn, will become 154 apartments, a yet-tobe-named hotel and a mix of restaurant, retail and office space.

The Rose and adjoining Sloan Building, 819-823 Prospect, were built in 1910 and 1916, respectively. All told, Project Scarlet, as it's called, has a project cost of $100 million.

The other big winner was the Welty Development Co.’s plan to convert the former YWCA building, 146 S. High St. in Akron, to 114 apartments, which received an allocation of $4.25 million in the announcement.

“This is an additional award to help us deal with additional construction costs and higher interest rates than we originally planned, so we can start demolition (of elements of the building to adapt it to new use) immediately,” said Tom Charek, president of Welty, in a phone interview.

The $43 million project will build on Welty’s fully leased Bowery Building nearby and have a design adapted to the postCOVID-19 era. The new suites will have additional closet space than was included in the Bowery, Charek said.

Plans by Solon real estate developer James Sosan to restore the abandoned former Cedar Branch YMCA received a $1.7 million tax credit for a proposed $8.8 million project to apartments, an event center and community functions. When built in 1941 at 7515 Cedar Ave., the structure was the only branch of the Cleveland YMCA that accepted Black members.

Other Cleveland- and Akronarea projects are as follows:

Broadview Savings & Loan Co., a $5,022,764 project, received $373,000 to convert the building at 4221 Pearl Road in Cleveland. The 1919 vintage building that housed the former Broadview Savings & Loan Co. will become 22 apartments.

Columbia Savings and Loan Co., a $1,155,022 project, won a $250,000 tax credit to help convert the three-story commercial building dating from 1891 in Slavic Village at 5601 Broadway Ave. in Cleveland, to a mix of retail and office space.

Frantz Ward welcomes Lauri P. Hartmann and Karina Pantoja to the firm as Associates.   Lauri is a member of the firm’s DEI Committee and Women’s Initiative and focuses her practice on transactional and litigation matters. She has experience in drafting memos and reviewing contracts. She earned her J.D. from Cleveland State UniversityCollege of Law, where she graduated summa cum laude in 2024.   Karina concentrates her practice on tax and estate planning, along with experience in general business matters and real estate professional liability representation and defense. She received her J.D. from Case Western Reserve University in 2024, where she served as a Certified Legal Intern at the First Amendment Clinic.

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Also a big winner was the $38 million plan to convert the Samsel Supply complex of a fivestory warehouse and an adjoining three-story office building at 1235-1285 Old River Road to 113 apartments with indoor parking and rent-ready first-floor retail space. The project to turn the complex where the longtime maritime and construction product supplier has just closed secured a $2,667,238 historic tax credit.

Brian Cappelli, president of real estate at GBX Group of Cleveland, said in a phone interview that the design of the building and its location on Old River Road near the Flats East Bank Neighborhood make it a standout.

E. F. Hauserman Administration Building, a $2,303,000 project, won $250,000 to update the former moveable interior wallmakers headquarters at 5711 Grant Ave. in Cuyahoga Heights to provide competitive office space.  ES Tripp House, a $528,500 project, won a tax credit of $103,000 to convert the houses, dating from 1848, that were converted to six apartments at 210 S. Main St. back to two apartments.

• Herald/Powell Buildings, an $11,631,565, project received a $1,905,000 tax credit to convert a former newspaper building and auto dealership at 459 and 467 Tuscarawas Ave. in Barberton to apartments on the second floors, while the first floors will be updated to suit contemporary commercial needs.

Homeier-Universal Motor Company Building, a $12,258,581 project, won a $2 million tax credit for the circa 1920 building at 816 E. Market St. in Akron. Originally constructed as a fireproof warehouse, the three-story structure and a 1930 addition will be converted into stores, a food court and event space.

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“The five-story building has large windows that are currently covered up,” Cappelli said. “When the glass is restored, it will have views of the downtown skyline on its east side and the riverfront on its west side. The suites will also benefit from the building’s tall ceilings as a former warehouse.”

The state’s news release said plans call for a pool atop the taller building, but Cappelli said GBX is looking at other features to make the space not only an amenity for residents but the community.

“We’re really excited about this because of the maritime history of the building and the way it can connect Flats East Bank to the rest of downtown,” Cappelli said. GBX Group is a national specialist in historic revitalization projects and is partnering on the project with RHM Group, a Lyndhurst property management and ownership concern, restaurateur Bobby George and the Samsel family, which continues to have a stake in the building.

Kerns Hall, a $20,684,475 project, secured a $596,903 tax credit to convert the 1890-vintage building at 2604 Garden Ave. in Cleveland to retail and restaurant space with community space on the upper floors.

South Brooklyn Savings Loan & Co., a $1,368,938 project, won a $180,000 tax credit for the building at 4209 Pearl Rd. in Cleveland. The two-storefront building dating from 1930 will be converted to eight apartments and another 39 apartments will be built next door.

Vitrolite Building, a $2,993,636 project, secured a tax credit for $250,000 for the Italian Renaissance-style building’s ongoing conversion to office space. The building at 2915 Detroit Ave. in Cleveland was originally a showroom and warehouse complex for sales of Vitrolite, an exterior glass popular on art deco buildings.

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