Crain's Cleveland Business

VOL. 38, NO. 18

MAY 1 - 7, 2017

Source Lunch

Akron OncoSolutions LLC aims to speed up cancer drug development. Page 17

Northeast Ohio Apartment Association’s Ralph McGreevy. Page 19 HEALTH CARE

Ohio VNA merging with big N.J. group

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

Facing financial losses in a time of rapid change for home health care, the Visiting Nurse Association of Ohio began looking for a partner to help drive efficiencies and enhance care delivery.

The nonprofit has signed a letter of intent with New Jersey’s Visiting Nurse Association Health Group, the two organizations announced last week. The goal is to improve health outcomes, expand access and meet the increased demand for post-acute, mental health and population health services.

VNAHG of New Jersey, the second-largest visiting nurse association in the country, will serve as the parent company for the Ohio organization, which will retain its name, corporation, employees and branding.

Dr. Steven Landers, currently president and CEO of VNAHG, will serve as CEO for both organizations, which each have century-long histories.

The New Jersey organization had been looking for growth opportunities and potential partners.

“We’ve been growing and doing a lot of innovative things, and so I’m excited to bring some of that back to Cleveland,” said Landers, who was previously a leader for Cleveland Clinic’s home care and post-acute programs. He was also one of Crain’s 40 Under 40 honorees in 2011.

VNAO offers a range of home-based hospice, mental health and health care services in 17 counties in northern and central Ohio. Jim Schaum, interim CEO for VNAO, said that Landers’ Cleveland ties will be a “tremendous advantage as we try to move forward.”

Claire Zangerle resigned last summer as VNAO president and CEO. Emily Smayda Kelly served as interim CEO until October, when she left the organization. Schaum has been serving since then.

SEE VNAO, PAGE 2

CLEVELAND BUSINESS

The List Auto suppliers, ranked by 2016 sales. Page 16

AGRICULTURE

Add Mexico to farmers’ worry list

By DAN SHINGLER dshingler@crain.com @DanShingler

Ohio’s corn farmers always have a lot to worry about. Rainfall, temperature, insects, mechanical failures or even an ill-timed illness can turn a season from a win into a disaster.

Now they have one more thing to add to that list: Mexico.

“We’re all definitely watching it.

Trade is a big issue for us right now,”

says Roger Maurer, seated on a new six-figure tractor as he plants corn and soybeans on about 600 acres near Wooster.

Maurer and other Ohio farmers have taken a keen interest in Mexico recently for two reasons that they

“We’ve considered NAFTA to being a huge win for agriculture.

NAFTA’s what led to Mexico being one of our largest corn markets.”

fear could become a perfect storm — the kind that can flatten corn profits like stalks in a tornado.

For one, the Trump administration, after previously promising to exit the North American Free Trade Agreement, now says it plans to renegotiate the deal. President Donald Trump, though, said last week he’d still be willing to tear up NAFTA if it can’t be negotiated on more favorable terms for the United States.

That’s not what farmers want to hear.

“We’ve considered NAFTA to being a huge win for agriculture. NAFTA’s what led to Mexico being one of our largest corn markets,” said Ohio Farm Bureau spokesman Joe Cornely.

At the same time, Mexican politicians are threatening a national boycott of U.S. corn as a result of their anger over Trump administration plans to build a border wall at their expense — and for blaming Mexico generally for what they see as problems rooted in the United States.

SEE CORN, PAGE 5

— Ohio Farm Bureau spokesman Joe Cornely

Wooster-area resident Roger Maurer says “trade is a big issue” for Ohio farmers. (Dan Shingler)

REAL ESTATE

NRP Group planning on a move to Halle Building by end of year

By SCOTT SUTTELL ssuttell@crain.com @ssuttell

The Halle Building likely will serve as the future headquarters of the NRP Group. (David Kordalski)

Entire contents © 2017 by Crain Communications Inc.

NRP Group, a powerhouse national developer of apartment complexes and other multifamily properties, is set to make some real estate noise on its own account.

The company, founded in 1995 and based in Garfield Heights, plans to move by the end of the year to the Halle Building in downtown Cleve-

land, contingent on the approval of state and local incentives. NRP Group said late Friday, April 28, that it's working with JobsOhio and the city of Cleveland on incentives to complete the relocation plan.

If all goes as planned, NRP Group will take about 43,000 square feet and will occupy the entire fourth floor of the Halle Building, 1228 Euclid Ave. The company declined to disclose how much space it has in its existing building in Garfield Heights, at 5309 Transportation Blvd.

A move to the Halle Building space would come with options allowing NRP Group to increase its space beyond the fourth floor, the company said.

Valentina Isakina, JobsOhio managing director for select headquarters operations, said in statement that NRP Group’s move to a Cleveland headquarters “will bring at least 38 new jobs to the region and help revitalize an historic building downtown.”

SEE HALLE, PAGE 2

Focus: Higher Education << Innovative

CSU program supports students aging out of foster care. Page 10 Exit interview with Oberlin College president Marvin Krislov. Page 11 Q&A: Tri-C JazzFest director. Page 13

PA G E 2

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HALLE

CONTINUED FROM PAGE 1

NRP Group said its space in the Halle Building would feature an open floor plan and would hold 200 employees. NRP Group is making the move to accommodate what it characterized as “rapid growth and expectations for further expansion,” as the multifamily property market has been hot for several years.

J. David Heller, principal and CEO of NRP Group, said the company was drawn to the Halle Building because of its central location “enabling our employees to fully experience the city of Cleveland and what it offers.”

The Halle Building space “will be state-of-the-art in design with highend technological capabilities while still preserving historical elements” of the building, according to the company.

The building opened in 1908 as a department store and in 1986 was converted to office and retail space, according to information on the website of the building’s owner, K&D Real Estate Services. It has a total of 380,000 square feet on 12 floors.

VNAO

CONTINUED FROM PAGE 1

Since 2014, the Ohio nonprofit has had financial losses of $1 million to $2 million annually, or 2% to 5%, Schaum said. The organization was having trouble adjusting to changes in home health care, such as payments and competition — “just a lot of different things all hitting at the same time,” he said.

“I guess we weren’t able to adjust as quickly as we probably should have, so we were looking at how we could best make the transition and get us back on the right track,” Schaum said. “We decided that a partner would be the best way to do this.”

Nonprofits don’t have the reserves other organizations might, he said, so it “doesn’t take long” to put an organization in a situation where

Willoughby-based K&D bought the Halle Building in December 2014 for $20 million.

NRP Group is a full-service developer, general contractor, and property manager of multifamily, senior and student housing nationwide.

The National Multifamily Housing Council’s most recent ranking of the country's largest apartment developers put NRP Group at No. 7 on the list, with 3,720 units started in 2016. The company started 1,785 units in 2015, according to the council’s list.

In addition to its Northeast Ohio headquarters, the company has offices in Austin, Texas; Boston; Buffalo; Dallas; Detroit; Gaithersburg, Md.; Houston; New York City; Orlando, Fla.; Raleigh, N.C.; San Antonio; and Tampa, Fla. NRP Group has 570 employees nationwide. Its website indicates it has developed properties in 12 states.

Locally, the company just finished The Edison, a 306-suite rental community in Cleveland’s Detroit-Shoreway Neighborhood. It also recently developed A Place for Us, an affordable housing community in Cleveland geared toward lesbian, gay, bisexual and transgender (LGBT) seniors. changes need to be made.

The plan is to make up those financial losses through efficiencies gained in the partnership. Because both organizations offer some services the other doesn’t, Schaum also pointed to opportunities to learn from each other about new delivery approaches.

VNAHG, headquartered in Holmdel, N.J., has different management and governance relationship with three other visiting nurses associations in New Jersey. VNAO will be its first partnership outside of the state.

The merger is expected to be completed this summer.

“The key to success in home care is partnering with hospitals and physicians in longterm care organizations, because care for people with serious chronic illness is a team sport,” Landers said. “You can’t operate as a silo.

You’ve got to do it in concert with the others.”

CRAIN’S CLEVELAND BUSINESS

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PA G E 3

Valley City golf course has new owners

By KEVIN KLEPS

that provides its golf carts and one that supplies scorekeeping technology.

Haddad admits that, because of his inability to refinance, he wasn’t paying the mortgages on the 69.9acre property.

“What I did was reinvest in the property,” he said. “After 13 years, I had restaurant equipment failing, I had ACs starting to fail, I was buying new trees, working on the golf course. ... If you don’t take care of business, there’s no way business is going to take care of you. That’s what my dad always said.”

kkleps@crain.com @KevinKleps

Coppertop at Cherokee Hills Golf Course had been in Mark Haddad’s family since the 1980s.

The 34-year run ended earlier this month, when three mortgages on the course — which is located in Valley City, about 30 miles southwest of Cleveland in Medina County — were assigned to an investment company headed by Greg Clement, the owner of Mapleside Farms in Brunswick.

For Haddad, it represented some much-needed closure after an extended, contentious fight with his lender, Fifth Third Bank, that included an unsuccessful attempt to restructure under the Chapter 11 bankruptcy process.

“There was no way I was going to survive the fight,” Haddad said. “I finally just threw in the towel.”

Cherokee Hills wasn’t immune to the golf industry’s struggles, but the 55-year-old Haddad said the course still was bringing in $1.7 million to $1.8 million a year in revenue. A major problem, he said, is the value of the course plummeted after the Great Recession.

In 2002, when a 100-year-old dairy barn that served as Cherokee Hills’ clubhouse and storage space was renovated into a 22,500-square-foot banquet, restaurant and entertainment facility, the golf course was appraised at $5.7 million, Haddad said.

When he started the Chapter 11 process last September, the course was

Clement is next in line

Coppertop at Cherokee Hills Golf Course is a well-regarded public facility in Valley City. (Contributed photo)

said to be worth $1.4 million.

“Here I’m fighting this battle thinking I gotta be worth around $4 million,” Haddad said.

But the decline in value, combined with Haddad not making a mortgage payment in three years, meant Fifth Third was unwilling to work with him on refinancing loans that the owner said called for him to make $32,000 in monthly payments to the bank.

“It wasn’t losing money,” he said of Cherokee Hills. “If I would’ve had reasonable payments, I could have made that payment.”

Haddad said he attempted to put an investment group together to take over the property, “but the bank just didn’t want to work with anyone who

had anything to do with me. They made that very clear.”

A Fifth Third spokeswoman told Crain’s the bank doesn’t comment on legal matters.

Haddad’s Chapter 11 filing showed that he owed Fifth Third more than $3 million, and provided a glimpse at the mounting expenses many golf courses face.

In addition to the Fifth Third mortgages, Haddad reported a $185,000 debt stemming from a New Orleans-area golf course owned by his late father, Ed, that went bankrupt after Hurricane Katrina struck. Cherokee Hills, the filing said, was paying a combined $35,000 a month during the golf season to its food vendor, the company

The Chapter 11 case was dismissed in January. At that point, Haddad knew it was time to give up.

According to documents in the Medina County Recorder’s Office, the three Fifth Third liens filed against Haddad — totaling $3,196,205.95 — were transferred to SMS Financial Strategic Investments LLC of Phoenix on March 21. Seventeen days later, the mortgages were assigned to Green Sky Ventures LLC, located at 6659 Pearl Road in Parma Heights.

That’s the address for Freedom Square, an office building that, according to Cuyahoga County property records, is owned by Clement.

Greg Clement and his wife, Kelly, purchased Mapleside Farms — a sprawling apple farm that hosts weddings, concerts and other events — in 2010.

Haddad said Billy Casper Golf, a Reston, Va.-based management company, has been operating Cherokee Hills on a temporary basis until

the new owners take over.

Mapleside Farms sent Crain’s a statement that said the new ownership group includes Clement, Eric Engelke and Jim Maclellan, who operate Engelke Construction Solutions in Brunswick, and Olmsted Township resident Joe Singleton.

“Coppertop is first and foremost a beautiful piece of land,” Clement said in the statement. “The Haddad family has done an incredible job beautifying this property over the past 30 years. Our focus is to continue to build on what they’ve done and integrate some creative ideas to get more people, more families, to experience the property in cool new ways.”

As for the former owner, Haddad said things got much easier once he resigned himself to the fact that the golf course was in someone else’s hands.

“My wife (Marian) likes me much more now that I’m not working 80 hours a week and missing family events,” he said.

Haddad said he’s now working about 45 hours a week driving a truck for an excavation company, and he might start a catering business on the side.

And really, he’s not going anywhere.

Of the six houses that line the property at Cherokee Hills, four are owned by Haddad’s family. Mark and Marian, who goes by “Sis,” have five children, six grandchildren and a great granddaughter.

“What made it easy for me was my friends and family came and worked with me,” Haddad said. “I was working a lot, but at least I was surrounded by friends and family.”

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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

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Finance industry vet Doug King once planned to recruit Jason Smith and his partners, who run two financial institutions and a training service for financial advisers in Westlake, to Cetera Advisor Networks in California, one of the countryâ&#x20AC;&#x2122;s largest independent broker-dealers.

Little did he expect these Northeast Ohio businessmen to turn the tables and eventually pull him away from the West Coast.

It was supposed to go the other way around. â&#x20AC;&#x153;It was late last year they started flipping it on me,â&#x20AC;? said King, who worked at Merrill Lynch for 25 years prior to Cetera â&#x20AC;&#x201D; the job that pulled him out of his retirement in 2011 at just 47 years old â&#x20AC;&#x201D; including serving a 16-month stint as Bank of Americaâ&#x20AC;&#x2122;s Minnesota president. â&#x20AC;&#x153;We started dreaming a little bit and thinking about what it could mean if we joined forces,â&#x20AC;? he said.

And to King, the future is bright.

King in April joined whatâ&#x20AC;&#x2122;s now known as C2P Enterprises at a critical juncture for the 6-year-old company as it plots a promising trajectory and digests some significant growth.

C2P Enterprises is a recently formed holding company that comprises Prosperity Capital Advisors, a registered investment adviser (RIA); C2P Advisory Group, an insurance wholesaler; and Clarity 2 Prosperity, a training business for financial advisers.

The new holding company was formed to more neatly tie and brand together the sister companies, whose formative days officially trace back to spring 2011 with the launch of Prosperity Capital, which Smith founded alongside partner Dave Alison. The prior parent company was C2P Capital Advisory Group.

King now is president and CEO of both the RIA and insurance marketing organization, taking those reins from Smith, who remains CEO of the training business.

Itâ&#x20AC;&#x2122;s kind of surprising, said King, reflecting on where his career has taken him. He didnâ&#x20AC;&#x2122;t necessarily picture himself at a Cleveland company. He was considering building his own financial advisory practice from the ground up while he was at Cetera.

But the opportunity he sees here was too compelling. â&#x20AC;&#x153;Once I began to dream with these guys,â&#x20AC;? he said, â&#x20AC;&#x153;this became a no-brainer.â&#x20AC;?

The suite of businesses under C2P reveals an interesting business model.

It started with Smith, who founded his financial services practice JL Smith Group in Avon in 1995. (Smith was unavailable for an interview for this story as heâ&#x20AC;&#x2122;s taking a couple

Alison

King

months off following a medical procedure, and his wife is expecting twins.)

Alison said Smith embraced whatâ&#x20AC;&#x2122;s often called the â&#x20AC;&#x153;holisticâ&#x20AC;? approach to financial planning in his retail practice, where an investment strategy is only part of the discussion. Heâ&#x20AC;&#x2122;s still an adviser at JL Smith.

Those kinds of services were most available to ultra-high-net-worth individuals in the past. But Smith tailored those for â&#x20AC;&#x153;middle-class millionaires, the people who may need it more than anyone,â&#x20AC;? Alison said, adding it was â&#x20AC;&#x153;impressiveâ&#x20AC;? to see in the market at the time.

Alison, a native Clevelander, met Smith while working at a supporting organization in Florida. They began mulling ideas for a business shortly after that. â&#x20AC;&#x153;In 2010, we saw an opportunity in the financial planning marketplace to take that holistic approach national,â&#x20AC;? Alison said.

They formed Clarity 2 Prosperity to train other advisers on that â&#x20AC;&#x153;holisticâ&#x20AC;? method, teaching methods and processes JL Smith Group had in place.

They held training sessions in Cleveland â&#x20AC;&#x201D; which they still do, holding two national meetings a year that draw people from some 100 to 200 advisory offices â&#x20AC;&#x201D; and marketed that across the country through the national platform.

The RIA, Prosperity Capital Advisors, formed soon after so the business could manage money for advisers nationwide. Then came the IMO, C2P Advisory Group, to provide back-office support for insurers across the country.

The companies were a natural fit, Alison said. â&#x20AC;&#x153;Really, what we created was a training company and two sister companies â&#x20AC;&#x201D; an investing company and insurance company â&#x20AC;&#x201D; that can support that holistic spectrum of product and portfolio offerings,â&#x20AC;? he said.

JL Smith is effectively C2P Enterprisesâ&#x20AC;&#x2122; flagship franchise that spawned everything else.

The next level C2P companies do business across the country with about 50 employees supporting the roughly 150 financial adviser offices running the processes first implemented at Smithâ&#x20AC;&#x2122;s retail practice, Alison said.

And their approach seems to be paying off.

The parent company was named an Inc. 5000 fastest-growing compa-

ny in 2016 with $4.9 million in annual revenue, which marks a three-year growth of 270%.

Prosperity Capital Advisors has $665.4 million in assets under management with roughly 2,000 clients, according to its most recent company filing. But Alison said AUM at Prosperity have grown about 400% in the last two years and are likely closer to at least $800 million today.

The training business, meanwhile, added a fee-only training service to better provide that educational component without someone joining C2P through an affiliate relationship.

That business has been particularly busy lately with the impacts of the Department of Laborâ&#x20AC;&#x2122;s fiduciary rule, whose changes to the industry were supposed to be implemented between April 10 and the end of the year. But the Trump administration has delayed that until June. Its ultimate fate is unclear, but the uncertainties it has caused in the financial planning world has driven up demand for the educational training C2P provides as advisers weigh how to apply that to their practices.

While the fiduciary ruleâ&#x20AC;&#x2122;s fate is unclear, it could benefit C2P no matter what happens to it.

If ultimately shut down, the increased levels of compliance it imposes, which even apply to RIAs, would lighten the regulatory burden for Prosperity Capital. If it goes through, Clarity 2 Prosperity could enjoy even more work. â&#x20AC;&#x153;The DOL fiduciary standard is something that just plain is not a workable piece of legislation,â&#x20AC;? King said. â&#x20AC;&#x153;The premise and best-interest idea is spot on and plays right into us and creates a tool and opportunity to help others solve those needs. But the current version is difficult to comply with, so weâ&#x20AC;&#x2122;re hoping that under this temporary delay, thereâ&#x20AC;&#x2122;s some common sense put into it.â&#x20AC;?

As King takes on his new roles at C2P, the enterprise is considering what its next moves will be, Alison said.

For starters, though, Kingâ&#x20AC;&#x2122;s running of the RIA and IMO frees up more time for Smith to work the training business.

And Alison said the firm is launching some proprietary financial planning software in about a month for advisers as part of its training arm â&#x20AC;&#x201D; so maybe a software company could be formed under the holding company, too, he said.

In the coming months, the firm will plot its strategic direction from here, though supporting financial advisers will remain a core part of their mission. â&#x20AC;&#x153;There are just so many directions we could go, but we have to be careful about it,â&#x20AC;? Alison said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re doing a strategic assessment on which path to take.â&#x20AC;?

King said in terms of size, â&#x20AC;&#x153;we plan to be substantially larger,â&#x20AC;? creating a footprint primarily in Cleveland, but other markets as well.

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CORN

CONTINUED FROM PAGE 1

Mexican Sen. Armando Rios Piter, who heads a committee in Mexico dealing with foreign relations, has threatened to introduce legislation that would boycott U.S. corn. Mexico will simply buy its corn from South America, where growers would love to have the tariff-free trade that U.S. corn growers now enjoy, he contends.

The stakes are huge. Mexico has become the largest single importer of U.S. corn, having overtaken Japan in just the last two years. Mexico now purchases almost a quarter of the United Statesâ&#x20AC;&#x2122; corn exports, and that has substantially buoyed prices here, say industry experts.

Since NAFTA was passed in 1995, U.S. corn exports to Mexico have gone from $391 million a year to $2.4 billion in 2015, the most recent year for which government data is available.

And in Ohio, corn is huge. The state is one of the top 10 in the nation in terms of corn output. Corn is Ohioâ&#x20AC;&#x2122;s largest crop in terms of bushels of production, according to the U.S. Department of Agriculture. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a little over 500 million bushels a year,â&#x20AC;? said Tadd Nicholson, executive director of The Ohio Corn & Wheat Growers Association.

Roger Maurer plants corn and soybeans on his 600-acre farm near Wooster. Heâ&#x20AC;&#x2122;ll grow more than 200 acres of each this year. (Dan Shingler)

That translates to nearly $2 billion a year in revenue for Ohio farmers â&#x20AC;&#x201D; and a bit more in good years, when corn fetches more than $4 a bushel. It also provides millions in state tax dollars and jobs for myriad industries and businesses that support farming, Nicholson said. â&#x20AC;&#x153;The total agriculture economy in Ohio is over $100 billion a year â&#x20AC;&#x201D; which makes it by far the largest industry in the state,â&#x20AC;? the Farm Bureauâ&#x20AC;&#x2122;s Cornely added.

But for Ohio farmers, margins are

thin. Last year, prices were just above the break-even level in Ohio, Nicholson said, at around $3.75 per bushel.

Thatâ&#x20AC;&#x2122;s a nice improvement from prices of $2 a bushel around 2000, but since then the United States has tripled the amount of ethanol it uses in gasoline, which pushed prices up. â&#x20AC;&#x153;The last 10 years were marked by expanded ethanol production in the U.S., but thatâ&#x20AC;&#x2122;s over now. The next demand driver is exports,â&#x20AC;? Nicholson said.

And with prices for this yearâ&#x20AC;&#x2122;s crop

already hovering at or below the break-even point, Nicholson said the U.S. needs to grow its corn exports now, not shrink them in a trade war. â&#x20AC;&#x153;To grow a bushel (of Ohio corn) costs about $3.70. ... Right now, weâ&#x20AC;&#x2122;re about there, which means weâ&#x20AC;&#x2122;re producing corn at or below the cost of production today,â&#x20AC;? Nicholson said. â&#x20AC;&#x153;So we need it to move up, and we need exports to do that.â&#x20AC;?

While the law is blamed for costing the U.S. manufacturing jobs, it helped agriculture by eliminating tariffs on U.S. crops sent to Mexico.

Some observers have even blamed the resulting Mexico farm crisis for the wave of illegal immigration to the United States that followed NAFTAâ&#x20AC;&#x2122;s passage.

Now, U.S. farmers are caught in the crosshairs. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s no question that NAFTA has benefited U.S. agriculture â&#x20AC;Ś but itâ&#x20AC;&#x2122;s a policy that needs an update. It doesnâ&#x20AC;&#x2122;t need to be thrown away,â&#x20AC;?

Nicholson said.

If it is, he said, Ohio farmers are likely to be in a tough spot. If Mexico turns to other markets, the price of corn in the United States will drop, he said â&#x20AC;&#x201D; including in Ohio, even though the state uses most of its own corn crop for livestock feed. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re turning our corn into a higher value product. But we count on Iowa and Illinois and other states on the Mississippi River,â&#x20AC;? Nicholson

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PA G E 5

said. â&#x20AC;&#x153;We count on them to export.

Itâ&#x20AC;&#x2122;s like thereâ&#x20AC;&#x2122;s one big pile of corn in the U.S. and everyone trades off that.â&#x20AC;?

Farmers might be hopeful that a crisis will be averted, but theyâ&#x20AC;&#x2122;re certainly not counting on it, said Tom Sleight, president of the U.S. Grains Council in Washington, D.C. Heâ&#x20AC;&#x2122;s worried about both NAFTA and a potential Mexican boycott. â&#x20AC;&#x153;Mexican buyers, who have been very loyal buyers of U.S. corn, are starting to look elsewhere,â&#x20AC;? Sleight said. â&#x20AC;&#x153;Mexico has begun actively talking to our South American competitors in Argentina and Brazil about maybe getting a zero tariff for them.â&#x20AC;?

But, of course, farmers canâ&#x20AC;&#x2122;t wait to see how things shake out before they decide whether or what to plant.

Maurer, the farmer near Wooster, was out planting more than 200 acres of corn the week of April 24. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll grow between 200 and 300 acres of corn,â&#x20AC;? he said, adding that heâ&#x20AC;&#x2122;ll likely plant an equal number of acres in soy beans this year.

Will he make money? â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t know yet,â&#x20AC;? said Maurer, with the hopeful chuckle only a farmer can wear well.

But he will soon, he said, since he sells his crop in late spring, not when itâ&#x20AC;&#x2122;s actually harvested. In the meantime, he said, he and other farmers will be watching the situation with Mexico closely.

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When the 17-story Crittenden Court Apartments, 955 W. St. Clair Ave., opened in 1996 in Cleveland, its 200 suites were a big factor in efforts to create downtown living in the city.

After 21 years, financing that made the multimillion-dollar project a reality may continue to yield added benefits for the cityâ&#x20AC;&#x2122;s continued economic development. Thatâ&#x20AC;&#x2122;s because a $3 million grant from the defunct federal Urban Development Action Grant plan helped make it happen. The Voinovich administration structured UDAGs as loans repayable to the city, although the terms were easy, such as 30-year terms at zero-interest in the case of the Crittenden project.

However, the loan may be a gift that keeps on giving, as legislation pending before Cleveland City Council would allow building owner Crittenden Court Joint Venture to satisfy the loan with a $972,000 advance payment. The city has OKâ&#x20AC;&#x2122;d such prepayments in the past as the figure is based on the net present value of the loan in todayâ&#x20AC;&#x2122;s terms.

Audrey Mecklenburg, a principal in the Crittenden venture, said in a phone interview April 20 that the building owners and city had mutually agreed to the advanced payment of the loan. She noted other cities have given UDAGs outright but these were the terms the original developers agreed to with the city. â&#x20AC;&#x153;Things are good now in the apartment market,â&#x20AC;? she said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;d rather pay it now. When this building was developed, it was quite an undertak-

The owners of Crittenden Court Apartments soon will satisfy what remains of a $3 million city loan. (Stan Bullard)

ing with nine different lenders, including the federal grant.â&#x20AC;?

Mecklenburg said the ownership had refinanced its loans on the project years ago, but satisfying the UDAG will make the propertyâ&#x20AC;&#x2122;s fiscal status simpler. â&#x20AC;&#x153;The city just wanted to know if we wanted to repay the UDAG to sell the building,â&#x20AC;? she said. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t.â&#x20AC;?

With a downtown population now brushing 14,000 and more than 1,000 new apartments headed to the market this year, itâ&#x20AC;&#x2122;s hard to believe that one of the cityâ&#x20AC;&#x2122;s goals with Crittenden remains unmet.

The project did not spur additional construction of apartments. Most of the new suites going onto the market are in old office buildings being con-

verted to apartments. Crittenden was the first new apartment building constructed in downtown Cleveland since the 1970s.

Since then, only the Flats apartments at Flats East Bank Neighborhood and Stonebridge were groundup additions to the downtown residential rental market. And they are not in close proximity to the cityâ&#x20AC;&#x2122;s established office districts and the heart of downtown.

As the nation goes through one of its largest bursts of apartment construction, the Cleveland area is also feeling the effects of that housing boom. However, though new apartment buildings are currently proposed at three sites in downtown Cleveland, none is rising yet.

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Magnet could be facing big budget cuts

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

If the president’s budget blueprint is passed as proposed, manufacturing advocacy and consulting group Magnet would have significantly fewer funds at its disposal. And, the group says, that could hurt small and mid-size manufacturers in the region.

Right now, President Donald Trump’s budget proposal, unveiled in March, would eliminate federal funding for the Manufacturing Extension Partnership program. In Ohio, that funding goes to the Ohio Manufacturing Extension Partnership, which is managed by the Ohio Development Services Agency’s Office of Small Business and Entrepreneurship. The statewide organization then supports seven partners in the state, including the Manufacturing Advocacy and Growth Network, or Magnet, in Cleveland.

According to numbers provided by Magnet, the organization received

about $1.7 million in federal funding in 2017. That’s nearly 21% of the organization’s 2017 budget of about $8.5 million. The funding has fluctuated over time, making up anywhere from about 15% to 24% of Magnet’s budget since 2010.

At the national level, the Manufacturing Extension Partnership’s goal is to support small and midsize manufacturers in a variety of ways, from helping with workforce needs to technology transfer. According to its website, the program has centers in all 50 states and Puerto Rico, all of which are private-public partnerships. The program, officially called the Hollings Manufacturing Extension Partnership after former U.S. Sen. Ernest Frederick “Fritz” Hollings, is part of the National Institute of Standards and Technology. In fiscal year 2016, the national network helped retain or generate $9.3 billion in new sales and 86,602 new jobs.

The president’s proposal says cutting that federal funding would save the country $124 million and allow the Manufacturing Extension Partnership centers to rely on non-feder-

al sources for funding, “as was originally intended when the program was established.”

Matthew Fieldman, Magnet’s vice president for external affairs, said losing the federal funds would lead to cuts in services and, likely, staff at the organization. Now, Magnet has about 40 employees and provides services that help companies work more efficiently, train their workers and more. And the group is already at “near capacity” for the number of companies it can serve in those ways, he said.

“The demand outstrips our supply,” Fieldman said.

Fieldman said he’s also concerned that a loss in federal funding could hamper Magnet’s advocacy work on behalf of manufacturers, as well as its work to keep manufacturers abreast of cutting-edge technologies, like big data and 3D printing.

Fieldman said the other question is what would happen to the state match in the long-term. Currently, the state matches the federal funds at least one-to-one, Fieldman said.

Magnet also applies for other state

grants, and matches its funding with private-sector money from sources such as philanthropy and earned revenue for its work with businesses, as is required.

Cleveland Whiskey CEO Tom Lix said federal cutbacks to the Manufacturing Extension Partnership would directly affect his company’s research and development. The whiskey maker is located in Magnet’s facility in Cleveland.

Lix declined to share specifics, but said Cleveland Whiskey is in the process of creating some new technology with the help of Magnet’s engineers that would allow the company to create a new business unit. He said he found Magnet’s help “invaluable.”

Larger companies may have their own engineers and research and development teams, Lix said, but smaller companies like his often don’t.

With Magnet, he’s able to share sketches and ideas and get them turned into prototypes.

Roll-Kraft in Mentor has not yet worked directly with Magnet, but President Sanjay Singh said he has spoken to them about working on a

project to reduce lead times and increase capacity that he hopes to start soon. As a lower middle-market company, Roll-Kraft is sensitive to price, Singh said, and Magnet has a deep pool of talent and expertise from working in a variety of manufacturing plants.

Magnet president and CEO Ethan Karp said previous administrations have tried to eliminate the Manufacturing Extension Partnership, and the program has been in the crosshairs of the Heritage Foundation — a conservative think tank — for a while, so seeing it up for elimination in the president’s proposal wasn’t a complete shock.

But right now, Magnet’s working to get supporters for the program in the House and Senate. It’s met with the offices of legislators in its footprint, Karp said. It’s also submitting online letters of support on behalf of companies, with the companies’ approval, Fieldman said, which are being sent to representatives and senators.

So far, it’s gotten approval for more than 50, including Roll-Kraft and Cleveland Whiskey.

Gordon Square Arts District opens micro-gallery

By SCOTT SUTTELL ssuttell@crain.com @ssuttell

The Gordon Square Arts District is giving a little more assistance to local artists.

The arts district last week launched the Gordon Square Art Space, which it said in a news release will “provide opportunities for local artists to experiment and create art in a new micro-gallery.”

The space, at 1386 W. 65th Street, two doors north of the Capitol Theatre, is operated by the nonprofit arts district.

It will provide stipends for artwork and programs to arts organizations and artists living or working in Gordon Square, the city of Cleveland and throughout Cuyahoga County.

Carrie Carpenter, president and executive director of the Gordon Square Arts District, said in an email that the stipends “will vary based on

the project, with most between $200-$500, though some could go up to $1,000.”

Local artists and curators Joe Lanzilotta and Ali Forbes will co-curate the 330-square-foot Gordon Square Art Space.

They selected artists Phoebe Thomas and Amber Esner for the first exhibit in the space. The show, “Them, There & It,” opened last Friday, April 28.

The Art Space project is funded through grants from Cuyahoga Arts

“We’re taking our neighborhood revitalization efforts to the next level by aligning economic opportunities with the arts.”

— Fred Bidwell, Transformer Station co-founder and director

and Culture, the Cleveland Foundation and the George W. Codrington Foundation.

“We’re taking our neighborhood revitalization efforts to the next level by aligning economic opportunities with the arts,” said arts district co-chairman Fred Bidwell, the co-founder and director of the Transformer Station museum and gallery, in a statement. “Our goal is for our arts and culture initiatives to benefit local artists, residents and businesses alike.”

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PA G E 8

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CRAIN’S CLEVELAND BUSINESS

Opinion From the Editor

Let’s find smart ways to keep Lake Erie great

Editorial

Better, but ...

Back in January, when Cleveland and Cuyahoga County officials began evaluating in earnest the public financing portion of the planned $140 million makeover of Quicken Loans Arena, we urged them to drive a harder bargain that tipped the payment scale more toward Cleveland Cavaliers owner Dan Gilbert and away from taxpayers.

Now that they've completed their work and signed off on the deal, how did they do? If we had to assign them a grade, it would be the same one we'd give the Cavaliers’ defense these days: a “C” — passable, but hardly a rousing success.

Cleveland City Council last week approved legislation that extends the city’s admissions tax until 2037, which will generate $88 million for the upgrade of the 22-year-old arena. Cuyahoga County Council already had approved the deal and agreed to sell bonds for the project.

In the face of opposition that was making it hard to get a supermajority on Cleveland City Council that would fasttrack the renovation project, the Cavs tossed in some deal-sweeteners.

Chief among them: For every dollar of admissions taxes to arena events that goes to debt service for the bonds that pay for the expansion, the city’s general fund will get an equal amount. The Cavs also agreed to resurface the basketball courts at all Cleveland recreation centers, more than 20 in total, which is a not-insubstantial investment in a city with heavy infrastructure needs.

Additionally, the team will restore 100 homes in the city of Cleveland over the next three years in partnership with Habitat for Humanity.

Council president Kevin Kelley said those concessions meant “an already good deal has gotten better.” Is it better? Yes. But a good deal for the public? Not especially.

Gilbert and the Cavs are picking up some of the tab, but the public is still providing the team and its billionaire owner with a large subsidy, and the late concessions made to move the financing package through quickly are good additions that don’t

shift the deal in the taxpayers’ favor in a fundamental way.

In our January editorial, we said we didn't fault Gilbert and the Cavs for pursuing a deal that’s tipped in their favor, and we continue to hold that view.

It’s smart business from their perspective to take advantage of the mania around professional sports that encourages public officials all over the country to open up the coffers to help makes teams’ arena and stadium dreams come true. (Say what you will, but the fact that Gilbert and the Cavs are providing even some of the money for The Q’s renovation makes this a better deal than many others that have been reached nationwide.)

After the financing package was approved, a coalition of local religious and civic groups announced it plans a ballot challenge to commitment of public funds to the arena renovation.

Members of the coalition — the Greater Cleveland Congregations, Service Employees International Union Local 1199, Cuyahoga County Progressive Caucus, AFSCME Ohio Council 8 and Amalgamated Transit Union Local 268 — said they will work to collect 6,000 signatures within 30 days to force a referendum vote.

That’s a worthwhile expression of democracy, but it will be a tall task, given the support the deal has in political circles (starting with Cleveland Mayor Frank Jackson), as well as the corporate community and the construction trades.

To the extent the deal got better from the time the arena renovation was unveiled until the financing package was approved, it largely was due to the work of the Greater Cleveland Congregations group, and not to political figures.

The group pressed the issue tirelessly, with an eye on building public support, and in a small way, at least, it worked. Its efforts provide a template, at least, for helping level the playing field the next time the public is asked to kick in to improve sports facilities.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS

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A late April day with warm breezes and temperatures in the 80s reminds me of how lucky we are to live on the shore of Lake Erie. A few brave souls recently had their sailboats on the still-frigid lake waters.

They’ll have plenty of company soon. Lake Erie will be dotted with speedboats and sails, and we’ll spend late afternoons and evenings with creeping shadows as we cast fishing lines or walk along the lakeshore watching the sun sink into the western sky.

So often, when you live with something long enough, you take it for granted. I fear that’s what we’ve done with our greatest natural asset.

At a time when we see the threat of environmental dangers such as toxic algal Elizabeth blooms juxtaposed with the potential of McIntyre federal budget cuts, we must seek creative solutions to ensure that our greatest natural resource remains a great Great Lake.

This week, Lake Erie takes center stage at the inaugural Erie Hack Competition and Water Innovation Summit, which will be held on May 2 and 3 at the Global Center for Health Innovation in Cleveland.

The mission of the summit, which is hosted by the Cleveland Water Alliance, is to explore how technologies, innovation and collaboration can be used to solve some of Lake Erie’s biggest problems, such as pollution.

“We’re excited to present this competition and summit that we believe will bring brilliant ideas to water innovation and put the spotlight on Cleveland,’’ said Alliance executive director Bryan Stubbs in a news release. “The goal is to raise awareness about our precious freshwater resource and turn the teams’ big ideas into startups that will drive innovation and economic development in Northeast Ohio and the Lake Erie region.”

Day two of the event will feature the finals of the Erie Hack Competition, a hackathon-style contest in which three teams from Cleveland are among the 10 finalists in the competition, which will award more than $100,000 in cash and startup services.

Not familiar with hackathons? Basically, you put smart people in a room for a day or two with a problem to solve, they brainstorm a bit, and often they come up with a great idea.

Sometimes they come up with a bankable one.

Erie Hack is a bit different in that the teams of water experts, engineers, students and lake lovers were given several weeks to formulate ideas using data and technology to address problems threatening Lake Erie.

What if drones could help to monitor conditions of the lake from above the waves? Or economical smart buoys could collect and transmit data in real time about the conditions that might spawn algal blooms? What if there was an app that would tell fishermen they just bagged an invasive species that shouldn’t be returned to the lake?

These and more great ideas from students at the University of Akron, Kent State University and elsewhere are in the works.

It’s a great example of the way we can use our brain power to protect our assets in Northeast Ohio. But you don’t have to be an engineer or a computer coder to help keep the lake healthy.

Use of fertilizers more intelligently on farms and in our yards.

Limit and control storm water runoff. Pick up litter the next time you’re at the beach. All of that can help.

We cannot take Lake Erie for granted.

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

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com.

Please include a telephone number for verification purposes.

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Web Talk Re: Future of John Kasich, GOP I would not readily conclude that Gov. John Kasich’s reputation remained intact through his presidential campaign last year, as asserted in a Bloomberg analysis that ran on the Crain’s Cleveland Business website. He made a series of gaffes that were not media-induced and showed himself as petulant when he did not attend the Republican National Convention. He’s a good guy, and may sell a few books, but he didn’t come across as a leader to voters outside of Ohio. — Melvin Gaines When will the state Legislature finally follow Kasich’s lead and increase taxes on the drillers that are getting a discount on natural gas in Ohio? We do not need to gouge them, but at least charge competitive rates to the states around Ohio. — D Ba

Re: Impact of national park According to a recent National Park Service report, the nearly 2.5 million visitors to the Cuyahoga Valley National Park in 2016 spent nearly $70 million in communities near the park, with an overall impact of $87 million. The spending, in turn, supported more than 1,000 local jobs, the report stated. Can someone tweet this to our fearless leader?

— Judi Osborne

Re: No apologies Having read the April 20 guest blog by Thom Fladung of Hennes Communications about Fox News’ dismissal of Bill O’Reilly, I’m left wondering what Fox or O’Reilly should have apologized for. The allegations against O’Reilly are just that, allegations.

They have not been proven in a court of law, nor has

there been any admission by O’Reilly of wrongdoing; quite the opposite, in fact. Yes, some 50 advertisers buckled to public pressure, pressure that is being applied by groups who have obviously concluded that O’Reilly is guilty until proven innocent. If O’Reilly is guilty, he should go. But how does Mr. Fladung know what it is to “do the right thing” here? I understand that the world of PR is not the same as the world of criminal or civil law. However, I find the lynch-mob mentality on display disappointing and have to wonder how much of the self-righteous furor of the mob is politically motivated (see the Duke lacrosse case, University of Virginia rape story

by Rolling Stone, Chick-fil-A, and Hobby Lobby as notable examples). — David Akers

As long as Ohio maintains the practice of obtaining school funding through property taxes, the cost of housing — whether owned or rented — will continue to rise. It is time to transfer school funding to Ohio’s income tax. An income-based tax for school funding would capture a percentage of funds from everyone collecting a salary — the high school football quarterback flipping burgers at McDonald’s to the highly compensated corporate executive, regardless of whether they live at home, live on rent, or own their home. Period. Why is the property owner responsible for every child in his or her district? It’s also time to stop the rhetoric that our property values are connected to our school system ranking. That is no longer the case in this economy. Pay up renters! — Michelle Matsko

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Focus HIGHER EDUCATION

Brianna Baynes, MaryAnn Dowdell, Makayla Lang, Shajuana Gaston are part of the Sullivan-Deckard Scholars Opportunity Program at Cleveland State. (Marc Golub for Crain’s)

A new meaning for the word ‘home’

An innovative Cleveland State program provides support for those aging out of foster care

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com | @ramccafferty

B

rianna Baynes wants to become an emergency room doctor. MaryAnn Dowdell is working toward a career in education, with a goal of becoming the U.S. Secretary of Education. Makayla Lang is planning to study neuroscience.

Shajuana Gaston hopes to open a group home and resource center to support young adults in foster care that she can expand worldwide.

All four are part of the Sullivan-Deckard Scholars Opportunity Program at Cleveland State University. The scholarship, which started in 2015, supports young adults who are in or who have aged out of the foster care system with full tuition, room and board and a host of academic and social supports. The program is small, but soon, Cleveland State will be able to help more young people coming out of the foster care system with the recently dedicated Pratt Center — Fostering Success and Leadership. The Pratt Center is named after Charleyse S. Pratt, a longtime administrator at the university who had been director of the Sullivan-Deckard program before she died in March.

“You know, I had dreams since I was a little girl about growing up and going to college in a dorm where I was safe from all the bad situations of my childhood and the not-healthy homes I was in. And she literally made my dream come true.”

— Makayla Lang, speaking about Charleyse Pratt, pictured.

Pratt’s influence on the scholars is clear, and the lessons she taught permeate the way they speak about the program and themselves. Lang said it’s important that people know the program wouldn’t exist without Pratt.

“You know, I had dreams since I was a little girl about growing up and going to college in a dorm where I was safe from all the bad situations of my childhood and the not-healthy homes I was in,” Lang said. “And she literally made my dream come true.”

The Sullivan-Deckard program began in June 2015 with its first cohort of 10 students. So far, 18 students have been offered scholarships, and 11 students in two cohorts have continued in the program, said Sandra Golden, coordinator of multicultural engagement and student success initiatives. Students must be high school seniors between the ages of 17 and 20 and Ohio residents when they apply; they must also be admitted to Cleveland State.

SEE SCHOLARS, PAGE 15

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HIGHER EDUCATION

Oberlin’s Marvin Krislov: The exit interview

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

In the 10 years Marvin Krislov has been president of Oberlin College and Conservatory, the school has completed a successful capital campaign, strengthened its relationship with the community and served as the public face of national coverage of student activism.

In a wide-ranging interview with Crain’s, Krislov reflected on his tenure with the school and why now is an appropriate time to pursue a new opportunity. This past fall, Krislov announced he would step down in June 2017, almost exactly a decade after he joined the college in July 2007.

When Krislov started, he wanted to strengthen the faculty and student body, and the college was in need of a new leadership team to fill some open positions. He wanted the college to become a model of sustainability. He said he wanted to improve fundraising because philanthropy is “absolutely essential” to private colleges. He wanted to do away with the perception that Oberlin was too small to be a dynamic community. And he said he wanted to “elevate” the college’s reputation.

Ten years later, most of what Krislov wanted to achieve at Oberlin is done. And he said he feels it’s important to leave a role when “things are fundamentally good.” He’s look-

ing forward to new challenges as he takes over as president at Pace University in New York in August. The committee charged with finding Krislov’s replacement aims to have someone approved by June 30.

Krislov said he’s had a somewhat unusual career, starting in government before entering education. He started out in that space at large, public research institution the University of Michigan, before coming to the small, private college that is Oberlin.

And now, he’s headed to a large private school with a focus on experiential learning and multiple campuses.

“I really like to grow and change and to stretch myself,” Krislov said. “And I think the common theme in the places I’ve been is the commitment to education as a way to improve people’s lives and to make a difference.”

Krislov said he was originally drawn to Oberlin because of what it offers in education and because of its commitment to the arts and to social justice.

Oberlin has a good reputation, but there are places across the country — and even across the state — where it could do better, Krislov said. About 9% of Oberlin’s students come from Ohio, and the state’s high school graduate pool is declining.

“To be strong, we need to appeal to a national base,” Krislov said, adding that international students need to be a focus, too.

And that’s where boosting Oberlin’s reputation comes into play. The college

“I think the common theme in the places I’ve been is the commitment to education as a way to improve people’s lives and to make a difference.” has gotten positive press in recent years for its environmental efforts, like the Peter B. Lewis Gateway Center and the environmentally friendly Hotel at Oberlin, and for the conservatory’s National Medal of Arts — the highest award for arts given by the federal government — as well as for Michelle Obama’s commencement speech in 2015.

“Reputation is an ongoing challenge, and we’ve had some challenging media coverage in the past few years,” Krislov said.

The college was pushed into the national spotlight at the center of features at publications like The Atlantic and The New Yorker in recent years because of student activism. Both of those particular pieces lead with some students protesting the food on campus for being culturally inauthentic, but the articles took wider looks at Oberlin and activism overall.

Oberlin has 3,000 students and about 300 faculty members, Krislov said, and they have a diverse set of beliefs.

The college tries to be transparent, Krislov said, and embraces how

much its students care. One thing Oberlin does well is allow for those discussions, Krislov said. But beyond Oberlin, recent attention on student activism reflects the times. There’s a lot of concern, from students and otherwise, about issues like income inequality and police brutality.

“I think that there are stories written about Oberlin that could be written — first of all, I don’t really know if they really contextualize — but that could be written about many, many schools and including schools that don’t necessarily have a reputation for involving social activism,” he said.

“Oberlin has, from its very founding, a strong streak of pushing for social justice. Concerns about racial equality, about gender equality, about gender identity — these are part of Oberlin’s history and they’re likely to be part of its ongoing legacy.”

Oberlin helps enrich the region by attracting people from across the country and the world, Krislov said.

And some of those people end up staying here and contributing to

Northeast Ohio. One of the examples he gave was the Sustainable Community Associates, graduates who turned a brownfield in Oberlin into residential and commercial space, which helped with quality of life in the town and made it more attractive.

Krislov is collaborative, warm and intelligent, and he cares about the community, said Diane Yu, counselor to leadership for New York University Abu Dhabi. Yu has been an Oberlin board member since 2006.

“He’s a thoughtful man,” Yu said.

One of Krislov’s strengths is in recruiting talent, she said, noting the only downside is that some of the leaders he brought on have already been recruited away to larger schools.

He is also a strong fundraiser. Krislov is also good about maintaining relationships, and even taught classes while president, Yu said.

The relationship between the college and the community was also important to Krislov. The two have a strong connection, having been founded by the same people at the same time. And Tappan Square, which essentially serves as the town center, is owned by the college. He thinks it’s a strength and wanted to take advantage of that, because giving students the opportunity to volunteer or go to religious services or events off campus makes for a better experience.

But Krislov had heard that prospective students and faculty didn’t

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HIGHER EDUCATION

Health, business programs sustain strong growth

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

Northeast Ohio’s four-year colleges and universities provided Crain’s with their fastest-growing programs by enrollment since fall 2011, and health and business programs appear to be the study of choice.

Some institutions included just undergraduate degrees, while others also included graduate programs.

Schools missing from this list either failed to respond or did not provide the information in a way that could be compared and quantified.

Some of the fastest-growing programs are growing for a pretty clear reason: They’ve been added to their respective college’s course offerings since 2011. (The programs listing an enrollment of 0 in 2011 have all been added in recent years, save for Kent State University’s journalism degree, which had been renamed, and Baldwin Wallace University’s arts management program, which previously was a minor.)

The other areas of growing interest for students look to be in health or business-related fields. Nursing programs were among the fastest-growing at Ursuline College, Hiram College and the University of Mount Union. Expanding that health focus to include other physical and mental health fields, programs like exercise science and psychology also saw sig-

nificant growth at local schools from 2011 to 2016.

On the business side, programs in fields like accounting, finance and management grew quickly at schools like John Carroll University and Mount Union. Mount Union’s individual business programs grew in part because of the addition of concentrations to what had formerly been just a business administration degree, but overall, its business programs have grown from 150 students in 2011 to 245 in 2016.

These trends could be encouraging to local employers. In August, the Northeast Ohio Council on Higher Education released a report that, in part, looked at were potential gaps between degrees and certificates being granted by local schools in 2013 and job openings at local employers in 2015.

Top of the list in terms of openings? Health professions and business, management and marketing.

These weren’t necessarily the programs with the largest gaps, percentage wise, but degrees and certificates granted did significantly lag openings.

One health-related field that saw large growth was Ursuline’s family nurse practitioner master’s program, which grew from 71 in fall 2011 to 186 in fall 2016.

Patricia Sharpnack, Ursuline’s dean and Strawbridge professor of the Breen School of Nursing, said the Affordable Care Act has increased the need for nurse practitioners as a

Fastest-growing programs Some colleges reported only undergraduate programs, while others included graduate offerings.

School Program Fall 2011 Fall 2016 Kent State University (Kent campus) Master of Digital Sciences 0 565 48 542 BA Criminology & Justice Studies BS Journalism 0 373 85 110 Hiram College Accounting/Financial Management Nursing 58 59 71 186 Ursuline College Family Nurse Practitioner MSN Art Therapy BA 0 51 6 22 Public Relations and Marketing Communications BA University of Mount Union Nursing 0 127 Management 23 94 Marketing 25 90 Lake Erie College Finance 7 23 Political Science 5 12 HR Management 5 12 Baldwin Wallace University Psychology 174 243 Arts Management and Entrepreneurship 0 60 Computer Science 92 137 John Carroll University Finance 141 217 Clinical Mental Health Counseling (graduate) 36 108 Accountancy 163 229 University of Akron Mechanical Engineering 796 1140 Chemical Engineering 289 501 Bioengineering/Biomedical engineering 266 389 Walsh University Corporate Communication 23 120 Exercise Science 0 112 Psychology 114 151

way to “fill the gap.” Family health and general medicine aren’t necessarily lucrative fields for physicians, she said, but the ACA’s focus on preventative or primary care means there’s a clear need for people with those skills.

Mount Union added its nursing program in fall 2013 because of demand in the field, said Michelle Sundstrom, vice president for enrollment management. And she said Mount Union’s heavy emphasis on liberal arts makes it attractive to employers who want well-rounded professionals in areas like nursing.

Largest programs It was also up to the individual universities how they defined a program.

School Program Fall 2016 Kent State (Kent Campus) Exploratory 1,078 127 Hiram College Business Ursuline College University of Mount Union Lake Erie College Baldwin Wallace University John Carroll University University of Akron Walsh University

Bachelor of Science in Nursing Exercise Science Biology Business Administration Biology Mechanical Engineering Nursing

241 130 123 461 284 1140 344

Source: Crain’s reporting

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HIGHER EDUCATION

Q&A: Terri Pontremoli Director, Tri-C JazzFest

These days, Cuyahoga Community College is in the business of cranking out nurses, welders, designers and culinarians. The college also has some swing to it, as for almost four decades it has hosted an acclaimed jazz festival. Four years ago, the festival switched things up and moved the event from April to June to sidestep the flurry of other cultural activity taking place in the spring. The idea, Pontremoli said, was to transform the venerable event into a true festival — think food trucks, dancing and a high concentration of music lovers under the summer sky — rather than a slate of concerts spread out across the city. This year’s festival will take place June 22-24 in Playhouse Square and feature Chris Botti, Boney James, Boz Scaggs, Dianne Reeves as well as a host of regional acts. Crain’s recently sat down with Pontremoli — an established musician in her own right and longtime arts administrator — to talk about the endurance of the festival, Tri-C’s jazz program and why the artform still plays an important role in the community. — Timothy Magaw Why is jazz such a special artform, especially one worth celebrating with a festival of this size?

I believe this music is the most democratic of all musics. Jazz is one of the most important artistic statements. It is revered around the world, but I would say it’s probably taken for granted here. If you study jazz and wrap your head around learning the fundamentals of it, you can be successful in any kind of music. It is complicated. It is layered.

Jazz — musically speaking — is almost a different language. It’s like having an accent. You fall into a sort of vernacular. There’s structure, but there’s also freedom within that structure. That’s what happens with jazz.

Why is the JazzFest something appropriate for a community college to take on? It’s not a small undertaking.

This college has a very strong sense of community. This festival is all about bringing world-class jazz to Cleveland but also about giving people the opportunity to study this music. We also want to make it accessible to people who wouldn’t otherwise necessarily be able to afford tickets. There are a lot of free things that take place during the festival. When this thing was founded, there wasn’t even a jazz studies program at Tri-C. As it started building, it started raising money to teach. It ended up making it possible for a jazz program to

It’s bringing something wonderful to the community.

A view from behind the outside stage at last year’s JazzFest in Playhouse Square. (Contributed photo) start. There aren’t a lot of opportunities to study this music. You could go to Oberlin and study it, but it’s going to be very, very expensive.

Over the last few years, the festival has made an effort to have more of a year-round presence. Why so?

With jazz or any other art form really, you have to nurture your audience throughout the year. You can’t just throw up your tents and say, ‘Here we are. Come and get us.’ We used to hold the festival in April, and the JazzFest really seemed to be the thing between the Rock Hall and the Cleveland Orchestra. I came up with the slogan ‘Cleveland rocks, but in April it swings.’

We used that for a longtime. Now in April, we have a lot of educational programming, then the festival in June.

But throughout the year, we’re bringing in jazz artists to BluJazz, BopStop or Nighttown. And we bring them in for master classes, so our kids are exposed to the very best.

This is the festival’s 38th year.

How has it lasted this long?

There is a specific need for it, it’s well run and the college endorses it and backs it up. That’s what we can credit for the longevity. All of this is precarious because a new president could walk into the college tomorrow and ask, ‘Why are we doing this?’ There are colleges all over the country that have performing arts seasons and own jazz festivals, but they’re not as rooted as we are or have as many tentacles out in the community as we do. Our mission is deeper with this music. We are fortunate that the college has taken this on, and it makes sense because who else would be taking on the art form in our community?

So, the college isn’t keeping it around to be a moneymaker?

Nothing is a moneymaker in jazz. This festival pays for itself between what it raises and what it sells in tickets.

With the move four years ago from April to June, the goal was to make the festival more of a destination, rather than something spread out all around town. How is that still evolving?

Last year, we started selling passes to the entire festival. We sold about 200 last year, and we’re on track to sell more than that this year. You want to be able to sell the concept.

People who go to a great festival and love it immediately sign up for the next year. They don’t wait for the lineup. They just say, ‘I trust these people. I’m coming back.’

That’s the thing we get to bring to Cleveland now. My experience is that jazz people love going to different cities and experiencing different music. The pass is a bargain at $250.

Has the festival brought a lot of out-of-towners to Cleveland?

I wouldn’t say a lot, but we’re just now getting our feet wet. There has been a noticeable difference. When it was in April, this festival was spread out all over the place. Now you can come down to Playhouse Square and immerse yourself in the music, visit the museums and restaurants.

I imagine it’s also pretty good for Tri-C’s brand.

It’s like Jerry Sue Thornton (Tri-C’s retired president) used to say, “Ohio State has their athletics teams, and we have the JazzFest.” It’s true. If people have never experienced Tri-C at all, they all know what the Tri-C JazzFest is about.

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Colleges should have clear policies when it comes to sexual assault In recent years, there has been an alarming rise in student-on-student sexual violence on college campuses across the nation. In fact, nearly one in four women are sexually assaulted while in college, according to a recent report by the Association of American Universities.

Sexual violence raises a number of issues for colleges and universities that extends far beyond those associated with sexual harassment. Although harassment generally falls within the scope of campus policies and procedures, incidents of sexual assault may constitute criminal offenses, require medical treatment and raise concerns about reporting, recordkeeping, police involvement and media attention.

As a result, administrators often find themselves caught in a difficult position â&#x20AC;&#x201D; having to act promptly, effectively and fairly, while balancing and protecting the interests of the victim, accused, other students, parents, the school and the public. These interests are often at odds with one another, which leads some to take an â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ll deal with it when I have toâ&#x20AC;? approach â&#x20AC;&#x201D; or, worse yet, â&#x20AC;&#x153;I hope it wonâ&#x20AC;&#x2122;t happen here.â&#x20AC;?

However, these head-in-the-sand attitudes rarely lead to good outcomes. Educational institutions taking this sort of approach often end up in the headlines when forced to pay huge monetary settlements or on the wrong end of massive jury awards.

The key to avoiding such an outcome is preparation.

Long before any allegation reaches a school official, there should be student code of conduct and sexual misconduct policies in place that address critical issues, including: J Clearly defining what constitutes sexual assault, what actions violate the student conduct code and the consequences of violating those rules; J Clearly identifying a Title IX coordinator and other school officials responsible for receiving complaints of sexual assault, and how a complaint should be filed; J Identifying any external persons/ agencies that must be notified of the allegations; J Describing the rights and expectations of both the victim and accused during the investigation; J Ensuring the expected timeline for conducting the investigation will be prompt and efficient; J Describing the level of confidentiality that will, or legally can, be afforded to those involved; and J Identifying the outcomes following a determination, including the process of implementing any disciplinary measures.

Sexual misconduct and harassment policies have no meaning if theyâ&#x20AC;&#x2122;re not available to and read by students, teachers, administrators and those who have contact with students, such as coaches and volunteers. Students should understand what is and is not acceptable, and what to do if ever a victim or witness to sexual violence.

Social media platforms are an ex-

William E. Blackie is of counsel at the Cleveland office of Fisher Phillips, a national management-side labor and employment law firm.

cellent avenue for publicizing this information and providing preventive suggestions. Regular, ongoing training should also be held for faculty and staff to clearly outline everyoneâ&#x20AC;&#x2122;s responsibilities and the consequences for violating them.

Conducting thorough investigations When conducting an assault investigation, itâ&#x20AC;&#x2122;s important to remember three key points â&#x20AC;&#x201D; be prompt, thorough and fair. Therefore, the first â&#x20AC;&#x201C; and perhaps most important â&#x20AC;&#x201C; decision is to identify an individual who can meet these requirements and conduct the investigation. The investigator should be specifically trained on investigating sexual assault issues, which are more complicated and sensitive than many other issues.

Responding to sexual assault allegations Once a complaint is filed, decisions must be made immediately on limiting contact between students and possibly even instituting a temporary suspension. Local authorities may need to be contacted, depending on the nature and severity of the allegation and state laws. Have an action plan in place to interview the victim, accused and any witnesses.

With a â&#x20AC;&#x153;fairâ&#x20AC;? investigation, there is no preconceived notion of the outcome, and the victim and accused are treated equally. For example, if victims are permitted to have their parents present during an interview, the accused should be given the same consideration. For those who must comply with Title IX, we expect a renewed emphasis by the Office of Civil Rights to ensure the accused is treated no less fairly than the victim.

Be sure to remind all interviewees of the collegeâ&#x20AC;&#x2122;s policy prohibiting retaliation for making a complaint and/or participating in the investigation. In addition, avoid the common mistake of victim blaming. For example, donâ&#x20AC;&#x2122;t ask questions of this nature: J Why didnâ&#x20AC;&#x2122;t you tell him/her to stop commenting on your body?

J Why did you wait so long to report this?

J Were you flirting with the respondent?

J What were you wearing?

These questions imply the victim may somehow be responsible for the assault. Instead, focus on asking open-ended questions. Once the facts have been obtained, more focused questions can be used to clarify specific points.

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SCHOLARS CONTINUED FROM PAGE 10

The room and board provided by the program covers the full year, so students can have a consistent home while at Cleveland State. Homelessness is a big concern for young adults who have aged out of foster care, Golden said. Young adults have aged out of the system at 18, but Ohio recently passed a law that will extend that to 21.

The Sullivan-Deckard scholarship was created with a $2.3 million gift from Frank and Barb Sullivan and Jenniffer and Daryl Deckard in 2014, and the center by a $1 million gift from the Sullivans earlier this year.

Sullivan, chairman and CEO of Medina-based RPM International Inc., said his wife became aware of the needs of students aging out of foster care through her work as a volunteer and board member at Fill This House, which helps recently emancipated young adults. The couple began thinking about what they could do to better serve that community and, after approaching Cleveland State, Pratt put together a plan that exceeded their expectations.

Young adults aging out of foster care are an “under-served need” in the community, said Jenniffer Deckard, president, CEO and director of Fairmount Santrol in Chesterland.

She and her husband, who have served as foster parents, said the program could be “transformational” for these students and as an example for universities everywhere, she said. Instead of just offering financial assistance, the program gives students consistency through a stable home, community and set of resources.

The program starts in the summer with an intensive, two-week “almost boot camp,” Golden said. The students take part in activities to

strengthen skills they’ll need for school, including note-taking or time management, as well “learning excursions” to places like the Maltz Museum. Students also participate in book discussions, programs run by “student navigators,” or peer mentors, and events with business professionals, Golden said. The second phase of the program sees the students enrolling in summer courses, all together as a cohort. Throughout, the program works to create a sense of community.

‘Coming into a family’ Beyond the financial aid, the students who spoke to Crain’s said the resources the program offers, and the community it creates, are invaluable.

“When you come in here, you’re coming into a family,” Baynes said.

It’s about more than just grades, Baynes said. Those involved with the program want to make sure the students are doing well in all parts of their lives.

People who haven’t been through the foster care system may not understand how important the support aspect of the program is, because they’ve had that sort of support all their lives, Gaston said.

“Like growing up in foster care, everything is so temporary,” she said.

“And so it could just be snatched up in a moment; you could be snatched up and moved to another house. But here, your housing is stable, your food is stable, the people around here who help us no matter the time of day, the weather or anything like that, they’re here to stay.”

But the program isn’t just a “housing scholarship,” Dowdell said, and students aren’t coddled.

There’s acknowledgment that the students came from difficult experiences, but the goal is on moving forward. Pratt asked the students who they were, and then told them to let

go of the “foster kid label,” she said. eral Adoption and Foster Care Analysis The Sullivan-Deckard program treats and Reporting System found that more its students like scholars, Gaston than 427,000 children and young said. They don’t get special treatment adults were in the foster care system as because they were in foster care. of Sept. 30, 2015. About 21,000 were “It’s really freeing,” Gaston said. emancipated that fiscal year.

But it’s not always easy. The stuMcCray said the Cleveland State dents stressed that they don’t get any program is the first of its kind, at least breaks when it comes to academics. locally, to offer this kind of financial support.

But And there’s a lot she’d like to see it of personal “When you come replicated.

It growth involved, gives students too. Baynes said in here, you’re the opportunity Pratt taught the to attend college scholars that it’s coming into a and live on camOK to be “new,” family.” and that as they pus debt free, she grow, not everysaid, in addition — Brianna Baynes, speaking to the educationone will support about the Pratt Center and stay with al benefits. them.

But the cohorts The academic supports in the pro- served by the Sullivan-Deckard Scholgram continue throughout the school ars programs are small, and there are year. Students have to meet with staff other students who came from the regularly and take part in 10 hours of foster care system on campus who “study tables” a week. They also all take don’t qualify for the scholarship. So part in “quality” work-study experienc- the Pratt Center in Rhodes Tower will es, Golden said. For example, one stu- be designed to support students who dent is working to create logos for the are in or who have left the foster care health and wellness center, while an- system, particularly those who are other is helping the English Depart- freshmen, transfer students or stument develop a Facebook page. dents who had left college and returned, Golden said.

The Pratt Center will extend almost Unique circumstances all of the supports offered to the SulStudents leaving the foster care livan-Deckard scholars to these othsystem face challenges. Many come er students, aside from the financial to the system, through no fault of help for tuition and room and board, their own, as a result of abuse or ne- though Golden said there will be a glect, said Jacqueline McCray, depu- small group of “Center Scholars” who ty director at Cuyahoga County Chil- receive a $1,000 scholarship.

“So the why and the purpose of dren and Family Services. They’ve been separated from their families this opportunity, the Pratt Center and may have had multiple place- and the Sullivan-Deckard scholars, is ment moves, so they may have trou- to change that landscape and create ble attaching or making connections. a new footprint for youth who may be And changing schools with those in foster care,” Golden said. “These moves may have left them without are bright, young, motivated individthe study skills they need to be suc- uals who can make a change in our society. And this opportunity gives cessful, McCray said.

The most recent report from the fed- them that chance to do that.”

KRISLOV

CONTINUED FROM PAGE 11

necessarily view the community as a “plus.” Krislov continued a program that offers free tuition to graduates who attended Oberlin’s local high school for all four years and started the President’s Public Service Fellows program that gave Oberlin students a stipend to stay and work in the community in the summers.

Oberlin’s made a lot of progress, Krislov said, but there’s still a lot of work for his successor. Krislov said figuring out how to keep higher education affordable has been the biggest challenge. At Oberlin, the total cost for tuition, fees, room and board in the 2016-2017 school year was $66,012.

Small, private institutions, dependent on tuition, fundraising and endowment income, have struggled in recent years. The college’s fiscal year 2016 financial report called its endowment its “financial cornerstone,” but also noted the importance of income from tuition and other student fees. Oberlin saw its net student income — its largest source of unrestricted operating revenues, by far — grow slightly to $122 million in 2016.

But the amount of student financial aid it paid also increased from $57.4 million in fiscal year 2015 to $59.9 million in fiscal year 2016.

Oberlin completed a capital campaign in 2016, exceeding its goal of $250 million by almost $68 million.

The majority of the campaign supported student scholarships. About 80% of Oberlin’s students receive need-based financial aid, Krislov said. This makes the college more socio-economically diverse, but it does put pressure on the institution.

“The cost of education is expensive, and to keep the doors open, we need to provide a lot of scholarships,” Krislov said.

Higher Education

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THE LIST

Auto Suppliers

Ranked by 2016 auto industry sales THIS YEAR COMPANY

2016 AUTO INDUSTRY SALES (MILLIONS) (1)

EMPLOYEES TIER LOCAL/WORLD (2) LEVEL (3) LARGEST CUSTOMERS

PRODUCTS MADE IN NE OHIO

TOP LOCAL EXECUTIVE

1

Goodyear Tire & Rubber Co., Akron (330) 796-2121/www.goodyear.com

$13,200.0

3,000 66,000

Tier I

NA

NA

Richard J. Kramer chairman, CEO, president

2

Shiloh Industries Inc., Valley City (330) 558-2600/www.shiloh.com

$1,066.0

421 3,600

Tier I

NA

Laser welded door inners; oil pans and dash panels; stampings

Ramzi Y. Hermiz president, CEO

3

Park-Ohio Holdings Corp., Mayfield Heights (440) 947-2000/www.pkoh.com

$600.1 (4)

NA NA

NA

NA

NA

Edward F. Crawford chairman, CEO

4

TimkenSteel Corp., Canton (330) 471-7000/http://timkensteel.com

$460.8 (5)

NA 2,500

NA

NA

Special bar quality steel for power transfer applications

Ward J. "Tim" Timken Jr. chairman, CEO, president

5

The Timken Co., North Canton (234) 262-3000/www.timken.com

$427.0 (6)

NA 14,000

NA

NA

Tapered roller bearing assemblies

Richard G. Kyle president, CEO

6

Schaeffler Group USA, Wooster (330) 264-4383/www.schaeffler.us

$409.0

NA 85,000

NA

NA

Transmission system components, mainly torque converters, for OEMs

Marc L. McGrath president, Automotive Americas

7

Republic Steel, Canton (800) 232-7157/www.republicsteel.com

$280.0

500 750

Tier I

American Axle & Manufacturing, Mid-West Forge Corp., Nexteer

Carbon and alloy special bar quality steel

Jaime Vigil president, CEO

8

Avery Dennison, Mentor (440) 534-6000/www.averydennison.com

$104.2 (7)

1,500 25,000

Tier II

NA

Reflective materials, graphics materials, automotive tapes

Georges Gravanis president, Materials Group

9

Fuserashi International Technology Inc., Valley City (330) 273-0140/www.fitinc.net

$60.0

93 1,000

Tier II

Honda

CVT transmission lock nuts, bushing metals, fuel rail flare nuts

Hal Wagoner, chief operating officer Keith Albrecht, general manager

10

IER Fujikura, Inc., Macedonia (330) 425-7121/www.ierfujikura.com

$24.0

135 2,500

Tier II

NA

Fuel and emissions related seals

Bryan Feimer COO

11

Die-Matic Corp., Brooklyn Heights (216) 749-4656/www.die-matic.com

$20.0

110 110

Tier II

NA

Metal stampings; value-added assemblies and welding

Jerry Zeitler president

11

Metal Seal Precision Ltd., Mentor (440) 255-8888/www.metalseal.com

$20.0

130 130

Tier III or higher

NA

Precision machined parts

John Habe IV CEO

13

PPG Industries Inc., Cleveland (412) 434-3131/www.ppg.com

$17.5

890 47,000

Tier I

Chrysler, Nissan, Toyota, Ford, KIA, Honda, Hyundai

Automotive coatings

Stanley Zaharewicz plant manager

14

Gent Machine Co., Cleveland (216) 481-2334/www.gentmachine.com

$5.0

48 48

Tier II

NA

Precision machined parts

Rich Gent, vice president Adam Gent, president

Standby Screw Machine Products Co., Berea (440) 243-8200/www.standbyscrew.com

$2.0

125 350

Tier II

Federal Mogul, Anchor Manufacturing, MPI, Haldex, Tremec

Pins, bushings, spacers

William F. Marcell II owner, COO

American Ring, Solon (440) 498-3730/www.americanringmfg.com

$1.0

47 93

Tier II

GKN Driveline; NTN; Borg Warner

Secondary processing (cleaning, stacking, double disc grinding, hyper lapping)

Bob Morrissey Jr., VP of operations, copresident Michael Anderson Morrissey, VP of sales, co-president

15 16

RESEARCHED BY CHUCK SODER

This list is a work in progress. Want to be included? Email Chuck Soder: csoder@crain.com.

The list includes local companies and business units that make parts and materials for cars and light trucks. We only included companies if we could determine how much revenue they generate from the auto industry. Many companies did not respond to our surveys, and some public companies, such as Eaton and Sherwin-Williams, do not break out revenue figures for cars and light trucks. Information is from the companies unless footnoted.

(1) Auto industry sales figures are for the company or business unit based in Northeast Ohio. Numbers include OEM and aftermarket parts and materials. (2) As of March 1, 2017. Timken and TimkenSteel figures are as of Dec. 31, 2016. (3) For most products. (4) Calculated from Park-Ohio's 2016 annual report, which states that 47% of its total 2016 revenue came from the auto industry (excluding heavy-duty trucks). (5) Calculated from TimkenSteel's 2016 annual report, which states that 53% of its total 2016 revenue came from "light vehicles." (6) Calculated from The Timken Co.'s 2016 annual report, which states that 16% of its sales come from the "automotive" sector (excludes heavy-truck sector). (7) For North America.

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PA G E 17

AKRON

Startup hopes to speed cancer drug research

By BETH THOMAS HERTZ clbfreelancer@crain.com

An idea that started in a lab at the University of Akron to help streamline the development of cancer drugs has led to a $150,000 grant from the Ohio Third Frontier Commission for the company that has been formed to commercialize the technology, OncoSolutions LLC. The idea came from the lab of Hossein Tavana, an associate professor of biomedical engineering. It involves the creation of three-dimensional polymer models of cancer tumors that can be used to test potential drugs. The pharmaceutical industry currently screens early investigational drugs with two-dimensional, or flat, layers of cancer cells. The drugs that pass this screen may move forward into animal studies, but up to 80% of them will fail that next phase.

“Each failed animal study represents about half a million dollars and six months wasted,” said Stephanie Lemmo Ham, a graduate student in Tavana’s lab who is the chief executive officer of OncoSolutions. “Our goal is to help companies screen out 50% of the compounds that they would otherwise move forward but that would wind up failing anyway, and instead put their time and money and expertise behind the compounds that are going to actually save lives.”

There are other three-dimensional cancer drug models available, but most do not produce consistent results that yield reliable data over time, she said.

Ham joined the lab as a graduate student in 2012, and validating the technology quickly became the focus of her thesis work. She hopes to graduate with her doctorate in bioengineering soon so she can devote her-

OncoSolutions got its start in a University of Akron lab. Clockwise from bottom are Stephanie Lemmo Ham, graduate student and OncoSolution CEO; Elyse Ball of the UA Research Foundation and OncoSolution’s COO; and Hossein Tavana, associate professor and OncoSolution’s chief technoloy officer. (Shane Wynn for Crain’s)

self full-time to OncoSolutions.

Tavana serves as chief technology officer of the company. Elyse Ball, who works for the University of Akron Research Foundation, a nonprofit arm that helps commercialize UA technologies, is chief operating officer.

Ball, who said her role with the company will be limited to providing business expertise and support, called the Third Frontier grant incredibly important to getting the company off the ground.

“It is critical to allowing them to get a lab set up off campus where they can really focus in on the things they need to prove their model is useful for pharmaceutical compa-

nies,” Ball said.

The company also has applied for $225,000 from the National Science Foundation’s Small Business Innovation Research Phase 1 program. Ham said she also plans to pursue startup funds from local investors after she finishes her doctoral degree.

Plus, OncoSolutions was the firstplace winner in a field of six student-led teams, from three area universities, competing in the April 27 finals of the LaunchTown Entrepreneurship Awards at the Bit Factory in the Akron Global Business Accelerator. OncoSolutions took home $7,000 in prize money.

Several graduate students partici-

pated in getting this technology where it is today, Ham said, before she and Tavana decided to go through the customer discovery process through two National Science Foundation programs. They interviewed 122 potential customers and found that there is an unmet need in the pharmaceutical industry for a three-dimensional cancer tumor model like theirs.

“We believe our unique polymer model can provide a technology that is robust, that provides reliable data, that is fast and that can really help solve this overall problem in a cost-effective way,” she said.

OncoSolutions does not have an

official location yet but hopes to secure space in the Akron Global Business Accelerator, she said. The Third Frontier grant will help them acquire equipment and materials as well as scale up the technology to be able to screen a large volume of compounds while maintaining the same level of robustness and reliability as their existing platform.

Ham said the company likely will serve as a contract research organization, performing the tests of potential drugs for industry.

“This type of business plan has really been validated for customers.

About a third of the high throughput drug screening by the pharmaceutical industry has already gone through a contract research organization, and that’s expected to increase in the future,” she said.

She hopes the company can hire more people as the validation work moves forward, but she has no timeline for that yet. She said she had no idea when she started graduate school that she would end up in a business venture.

“It’s really been interesting for me to see this develop over five years on the technical side, and then go into this other business side and learn about the market, the customer need, and what the industry is looking for,” she said. “I’m learning more every day. It’s been a good adventure.”

Ball said it is very exciting to see that a number of UA student-run startups with strong potential to succeed have emerged in recent years.

“They know what they need to deliver to get their business to the next level, and OncoSolutions is a particularly great example of that. It is led by a graduate student who has chosen to broaden her horizons and has found the capacity to be both a business leader as well as a scientist,” she said.

JohnDow riding auto trends to growth, acquisitions

By DAN SHINGLER dshingler@crain.com @DanShingler

JohnDow Industries Inc. is becoming a big name in Barberton — and it will be bigger yet if the company can continue to grow revenue as it has recently and find the acquisitions it now seeks.

“The sales threshold we’re eyeing now is $50 million,” said company president Drew Dawson.

JohnDow does not disclose its financials. But when asked if that was a short-term goal or a 20-year plan, Dawson chuckled.

“It had better happen in five!” he replied.

The automotive equipment supplier will surpass that goal easily if it just keeps growing like it has since the Great Recession, Dawson said.

“We’ve been growing by 15% a year for the last seven or eight years,” he said.

The company also has grown physically. It has expanded its space in Barberton from about 50,000 square feet to about 118,000 square feet since 2007. At the same time, its employment has gone from fewer than 30 people to 40 today, Dawson said.

He sees a number of reasons for that growth.

For one, the company has been adding new product lines, including a full line of parts and equipment used to replace and maintain tire pressure-monitoring systems, commonly known in automotive circles as TPMS. Since the government mandated the systems in 2008, maintaining them has become a big part of the automotive industry, Dawson said. And that’s contributed significantly to his company’s sales.

JohnDow also has introduced new ventilation systems that it sells to dealerships and shops so that they can keep their garages and bays full of fresh air and free of carbon monoxide and other exhaust fumes.

Those are often six-figure systems, and each is designed specifically for the shop where it will be installed, Dawson said.

That’s on top of the company’s long list of traditional and existing products — everything from lug nuts to equipment used to drain and store fuel from gas tanks during certain repairs. All told, the company has about 6,000 products in its catalogs today, says JohnDow vice president of sales and marketing Robert Christy.

In the meantime, Dawson says there are multiple trends that should help him continue to grow sales. In addition to TPMS systems now be-

JohnDow Industries president Drew Dawson poses with some of the company’s automotive repair equipment. (Dan Shingler)

coming standard, cars are becoming more complex in general, he said.

They’re also becoming more expensive and lasting longer, which means that they require more maintenance and repair for more years.

Much of that is true, said Andy Fiffick, president and CEO of Parma Heights-based Rad Air Complete Car Care and Tire Centers, an award-winning chain of a dozen repair shops located across Northeast Ohio. Fiffick

said he is familiar with JohnDow. “JohnDow is a player. They’re a big-time player,” Fiffick said.

Fiffick said he’s seeing more business for some of the same reasons reported by Dawson. For example, TPMS has become a big part of RadAir’s business, too, he said.

“Since the government mandated them, it’s been a growing part of our business, and now they’re all starting to wear out,” Fiffick said.

There are lots of trends leading to more work for repair shops, he said.

Cars last longer, they are more difficult to work on for do-it-yourselfers as more components are crammed into less space, and there’s a computer running everything from the air conditioner to the ignition system.

“We have to continually train our people to keep up with the technology,” Fiffick said.

That all helps JohnDow as well. But to grow the way that Dawson hopes it will, JohnDow likely will need to make some acquisitions, he said.

It’s done one recently, picking up CDI Inc. of Granger in the fall of 2015.

That added about $3 million to JohnDow’s sales and, more importantly, gave it a new list of chemical products used by the same automotive shops that were already its customers.

Now, it hopes to do some more,

and Dawson said he’s looking for sellers.

“Our sweet spot is probably that $2 million to $5 million automotive aftermarket company where maybe the owner does not have a transition plan into retirement, and maybe doesn’t have family that wants to take over the business, and is looking for a way to exit it,” Dawson said.

It might even mean that JohnDow begins direct manufacturing.

Dawson said he has not ruled out buying a manufacturer if it makes products that fit within his company’s existing product lines and end markets.

Outside of some assembly work, JohnDow does not, for the moment at least, do its own manufacturing.

Dawson said he contracts with roto-molders, metal fabricators and others to make the products he needs to JohnDow’s specifications and with its own branding.

Dawson said he also might welcome some help with a new acquisitions, because he said he knows that just because someone is willing to sell does not mean they are ready to retire.

“We would welcome the idea of someone from a viable company like that even coming in to work with us for a few years … to help us continue to grow that company,” he said.

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First Mutual Holding Co., the largest depositor-owned mutual holding company of its kind in the Midwest, announces the appointment of Sue B. Workman to its board of directors. Workman is Vice President and Chief Information Officer at Case Western Reserve University, where she is responsible for creating the vision and strategies to enable delivery of innovative technology solutions that support the university’s mission of teaching, learning and research.

PROFESSIONAL SERVICES

INSURANCE

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Board member First Federal Lakewood

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First Federal Lakewood, the largest independent depositor-owned bank headquartered in Ohio, announces the appointment of Dr. Ellen Burts-Cooper to its board of directors.

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Jim Rowlands Principal FocusCFO

Carol Davis has been named VP of Engineering at viperks, an employee-only, online shopping platform. Davis will be responsible for managing the platform’s strategic direction, development and quality assurance. Prior to joining viperks, Davis was the VP of Engineering at Lakewood’s DecisionDesk, a higher-education software company.

Davis has more than 15 years of experience in software development and is a proud member of Women In Software Engineering and the Executive Software Development Club.

Jim provides small and medium sized Ohio businesses with flexible, onsite CFO services, including sound financial management, forward-thinking insights, and proactive financial strategies to improve internal cash flow, reduce business risk, and increase the health of small/medium-size businesses.

Thomas L. Rosenberg has been named Chair-Elect of the American Bar Association Forum of Construction Law (Forum).

Rosenberg, a longtime member of the Forum, has served on numerous committees and subcommittees. In addition, he was recently inducted as a Fellow in the American College of Construction Lawyers (ACCL) and is one of only three attorneys in Ohio to currently hold this prestigious title.

Rosenberg leads Roetzel’s Construction Law Practice and is based in both Cleveland and Columbus.

www.crainscleveland.com/peopleonthemove.

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Crain’s People on the Move promotional feature showcases Northeast Ohio job changes, promotions and board appointments. Guaranteed placement inprint, online and in a weekly e-newsletter can be purchased at

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Source Lunch Ralph McGreevy

Executive vice president, Northeast Ohio Apartment Association Spending time with Ralph McGreevy is like taking a quick course in fine living. For 20 years, McGreevy has run the staff of the region’s trade group for apartment building owners and operators. It’s a mix of organizing social and education events with lobbying and finding ways for the association to aid its members. He won’t call it networking; he said he likes people and hearing their stories. It’s no surprise this terrific story teller is a journalism graduate of Ohio University. For a decade, he freelanced travel and restaurant reviews for The Plain Dealer. However, his current sideline is making movies. He’s a partner in Transition Studios with Shawn Rech, whom he calls a genius. Transition’s latest is “White Boy,” a documentary about a teen-aged government drug informant later jailed on drug charges. — Stan Bullard

Five things What are you reading now?

“The Man Who Loved China: The Fantastic Story of the Eccentric Scientist Who Unlocked the Mysteries of the Middle Kingdom,” by Simon Winchester. And “A Futile and Stupid Gesture: How Doug Kenney and National Lampoon Changed Comedy Forever,” by Josh Karp.

Do you still collect books?

No. I collect vinyl. I go to record stores or out-of-town thrift stores. I derive a lot of pleasure from listening to the same music my parents and grandparents enjoyed.

Last vacation?

The same as the next one. San Miguel de Allende in the mountains of Mexico. It’s peaceful. The air is clean. People are friendly.

What’s your favorite dish?

Yellow curry. I love Thai food.

Where is your car radio tuned?

I listen to books on CD. It’s commercial free.

Lunch spot Pier W 12700 Lake Avenue Lakewood

The meal One had tomato soup. One had the Caesar salad with salmon, the other the cod sandwich and chopped salad. Dessert was sorbet. Both had coffee.

The vibe Elegant and quiet at lunchtime. On weekdays, there are not only people having business lunches but also celebrating birthdays. The view of Cleveland’s skyline is sensational.

The bill $ 71.13 with tip

More than 1,000 apartments are going up in Northeast Ohio, far more than any time in decades. Do your members worry about the future?

No. It’s the first time in 20 years that people are truly living in apartments by choice. Thank you millennials!

Thank you empty nesters! The market will not get overbuilt.

Success begets success. It’s the first time in my lifetime that the core of the city has been so successful. I’m even prouder to represent the apartment industry that has single-handedly reshaped downtown Cleveland. It used to be that no one lived there. That’s not true now.

Why do you say downtown is a different place?

Look out the window. The improvements, not only to Public Square but the vitality on the streets that only comes when it is filled with residents as well as workers. Back in the ’80s when I used to have an office at 636 St. Clair Ave., across from the Westin when it was the Bond Court Hotel, no one lived in downtown Cleveland. That may be an exaggeration, but only a small one. There was PJ’s on the Green (a popular bar and restaurant) next door and the Theatrical around the corner. But there truly was nothing much happening on East Ninth Street and beyond, no East 4th Street to speak of, no Warehouse District. That’s not true today. We have all that and so much more.

Merchant Street make good food accessible to all tastes. We are truly blessed in Northeast Ohio with terrific chef/entrepreneurs.

How do you deal with employees you find are looking for another job?

I got the impression once you showed them the door. In my experience, when someone wants to move on, you can give them a new title, more responsibility or more money, and it won’t make any difference. Once someone has made up their mind to move on, you should encourage them to pursue their future. If necessary, you should help them figure out what they want to do and play some small part in helping them find their new opportunity.

Who has influenced you the most?

First and foremost, I would say my wife, Holly. She is a trained social worker and has smoothed out many of my rough corners. She is kind and patient, and it has rubbed off. Ray Pianka (the Cleveland Housing Court judge, former councilman and one-time community development corporation executive who died Jan. 22) has helped me set a good compass for NOAA and for myself.

Where is Cleveland missing it today?

I have huge respect for Mayor Jackson. But when I heard him declare he is running for re-election and that he is the only candidate with a sincere interest in the well-being of the people, it made me wonder if he is aware that while certain areas prosper, other areas remain untouched. Our inner city has lots of work to do to help raise the outcomes for all its citizens.

You are a partner in Transition Studios. How did that come about?

My friend and partner Shawn Rech always wanted to make movies. We worked together for a while at NOAA. We first did a television series, Crimestoppers Case Files, that started in Cleveland, did very well, and then was recreated in Miami, Los Angeles and Chicago. Shawn sold or closed the shows to do movies. Our first was, “A Murder in the Park.” It was sold to Showtime and is on Netflix. “White Boy,” the second Transition Studios movie, is being shopped. Three to five other films are in the works.

What’s your favorite restaurant?

I’m past the fine dining phase of my life. I think a better question is who’s your favorite chef? That would be Dante Bocccuzzi, but if pressed on favorite restaurant, I would have to say Wonton Gourmet and BBQ at 32nd and Paine Ave. I really enjoy the complete lineup of Asian restaurants we now have available throughout town. But All-American restaurants like Happy Dog, Dante Next Door and

You ran the Cleveland Home and Flower Show for a long time.

What’s your view on Cleveland’s convention and events efforts?

There was a time when I thought the convention business would go the way of the buggy whip. The internet took away a key function of conventions and shows, to announce new products. I failed to take into account that we are social creatures.

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sider intel

MARKETING, ADVERTISING & EVENTS INSIGHTS.

Today’s Tip: It is essential to get the word out about your event.

Marketing is not only important for bringing awareness to an event, it is crucial in driving attendance. Whether it is through advertising, social media, sharing on local websites or e-blasts, marketing is a key ingredient to getting the word out about the event.

Ashley Ramsey

Events Manager Crain’s Cleveland Business aeramsey@crain.com

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