VOL. 38, NO. 17
APRIL 24 - 30, 2017
Source Lunch
As Bolivar turns Ohio Means Jobs is looking for a new home on short notice. Page 3
Rick Batyko, senior vice president, Team Northeast Ohio Page 27
CLEVELAND BUSINESS
The List Largest family owned businesses Page 22
MEDICAL MARIJUANA
Clock is ticking on investment chances As start date for program approaches, potential grow sites are sought By JEREMY NOBILE
Illustration by David Kordalski
jnobile@crain.com @JeremyNobile
Communities across Northeast Ohio are debating whether to welcome medical marijuana businesses and how to regulate them locally, but the ones who haven’t made up their minds at this point are much more likely to miss out, particularly in terms of the more lucrative operations. That’s because those seeking licenses from the state for different activities, cultivators in particular — only 24 grow sites will be permitted initially, though the state will have an option to increase that number in September 2018, when the medical marijuana program is required to be up and running — have been actively looking at potential cities and sites to call home for quite some time. Even if a city intends to open up to
time and resources to identify a piece of property, engage with the owner for a lease option contract or purchase a contract if they don’t know the municipality is going to allow for this type of business in the commu-
marijuana businesses in the future, those that don’t seem very hospitable right now generally aren’t being as targeted by entrepreneurs and investors. “People aren’t going to spend the
nity,” said Thomas Haren, an attorney at Seeley, Savidge, Ebert & Gourash who’s working with aspiring marijuana businesspeople. “Community support is going to be one of the most important parts of the application. And if a community isn’t indicating it’s supportive of the industry, they’re basically foreclosing on any investment.” Several cities are taking “wait-andsee” approaches, keeping temporary bans in place until they do more research or the industry begins to mature in Ohio. Local governments doing that typically cite leeriness of what the industry could mean to their cities — some worry of increases in crime — or haven’t settled on their own local rules. Some just don’t like the idea of marijuana being produced or sold in their towns, even solely for medical purposes. Others are showing support in various degrees. SEE MARIJUANA, PAGE 25
HEALTH CARE
Innovation center is looking to keep blood flowing By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre
In the decade since its founding, the Global Cardiovascular Innovation Center has reached some milestones its leaders are quick to tick off — and now the center is considering how to sustain its operations as its
original funding source wanes. A $60 million grant from Ohio Third Frontier established the multi-institutional center, which aims to advance cardiovascular innovation and contribute to economic development in Ohio. Since then, the center — which develops, incubates and commercializes cardiovascular technology — said it has created more than 1,000 jobs in Ohio, attract-
Entire contents © 2017 by Crain Communications Inc.
ed 17 new businesses to the state, granted funding awards totaling $21.5 million to support 51 technologies in companies and institutions in the state and helped secure more than $1 billion in new funding. “We have far exceeded every one of the original metrics that was established for the company or for the organization,” GCIC managing director Mark Low said. “Now, it’s taken us a
little bit longer to do than was originally anticipated ... It was a five-year grant, and we’re in Year 10. However, we still have not spent the full $60 million.” So far, the center has spent about $53 million of that original award, and Low expects that remaining funding will carry the center through 2018. Beyond that, the GCIC is looking at several options. For one, the
center is looking to expand the amount of equity it holds in some of the projects, which will hopefully bring a return in the future. Low is also looking at securing more investments from sources beyond Third Frontier, including venture capitalists, commercial entities, foundations, philanthropists and other organizations. SEE CENTER, PAGE 23
Legal industry outlook << ‘Stagnant’
demand forces firms to adapt in quest to maintain profits. Page 13 Succession planning is difficult, but crucial, in an older industry. Page 15 Five to watch in law. Page 16