Crain's Cleveland Business

VOL. 39, NO. 10

MARCH 5 - 11, 2018

Focus

Source Lunch

Planning a meeting or event? We’ve got your back. Pages 11-17

Thomas Fraser, president and CEO of First Federal Lakewood and First Mutual Holding Co.

The List

CLEVELAND BUSINESS

The region’s largest credit unions Page 18

Page 23

ECONOMIC DEVELOPMENT

CENTER MEETING REGION’S NEEDS

By JAY MILLER

jmiller@crain.com @millerjh

In the nearly five years since the Huntington Convention Center of Cleveland opened its doors, along with the Global Center for Health Innovation, the $465 million complex has hosted more than 1,000 events, according to data supplied by the convention center operator, SMG World, a leading venue management firm. Those events ranged from small meetings to serving as the media center for 15,000 journalists covering the Republican National Convention in the summer of 2016.

The question is: Was the decision made by three Cuyahoga County commissioners in 2007 to levy a 20year, 0.25% sales tax worth it?

Convention center supporters generally trot out complicated financial models that report they have positive economic impacts on their communities even though the buildings’ direct revenues rarely cover the cost of building and operating those facilities.

That’s certainly the case in Cleveland.

SEE CENTER, PAGE 7

The Huntington Convention Center of Cleveland attracted 222,656 visitors to 222 events in 2017. (SMG/Huntington Convention Center)

GOVERNMENT

UNIVERSITY OF AKRON

Polymer college faculty losses mount HIMSS is extending

By DAN SHINGLER dshingler@crain.com @DanShingler

There is trouble afoot at the University of Akron’s vaunted and internationally known College of Polymer Science and Engineering.

And that’s trouble for one of Ohio’s most important industries as well.

“My first thought is: ‘Is (the polymer college) important?’ And the answer is: ‘Duh!’ ” said PolymerOhio executive director Bruce Fawcett. “They are a huge asset for our industry.”

The most startling evidence of problems at the school came Friday,

Entire contents © 2018 by Crain Communications Inc.

March 2, when the university announced that Polymer College dean Eric Amis will relinquish his position in June, though he will continue to serve as a tenured faculty member.

But that’s hardly the extent of the issues facing what is the university’s best known and arguably most important program.

The announcement of Amis stepping down came after about a quarter of the college’s top faculty has left over the past two to three years. It also came less than a week after associate dean of research Matthew Becker was quoted in the Akron Beacon Journal criticizing the way the university has managed the college — and just two days after Amis sat down with Crain’s to discuss the matter in Akron. Crain’s also talked with Becker before the announcement.

SEE POLYMER, PAGE 21

Global Center stay

By JAY MILLER jmiller@crain.com @millerjh

A lease-signing at the Global Center for Health Innovation may mark a sign of stability for a building that was originally intended to be a medical merchandise mart.

Operators of the Global Center believe the announcement, scheduled for Monday, March 5, of the extension of the lease of the Healthcare Information and Management Systems Society (HIMSS) is a vote of confidence in their plan for the 235,000-square-foot building to be a place where new ideas in the health

care and bioscience fields are explored and advanced. The building, like the adjacent Huntington Convention Center of Cleveland, is owned by Cuyahoga County.

“HIMSS is a huge tenant for us, but it’s more than just (a lease for) space,” said Cuyahoga County Executive Armond Budish. “It sends a message to others that this is the place to be for health care innovation.”

The HIMSS Innovation and Conference Center has occupied much of the top floor of the four-story building on Cleveland’s Mall since 2013, and its lease renewal is a signal that the building’s largest tenant approves the latest strategy for the building.

SEE GLOBAL, PAGE 19

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EY’s new leaders see untapped potential

By JEREMY NOBILE jnobile@crain.com @JeremyNobile

Ernst & Young’s new leaders in Northeast Ohio have a brand image to address.

As the largest accounting firm in the market, with nearly double the number of CPAs in the region as their closest Big 4 competitor, EY has garnered a perception for seeming too big to fuss over smaller and midsize companies. While the firm has clearly excelled and now dominates this region, the firm sees untapped potential in a smaller end of the market.

That’s why Monte Repasky and Whitt Butler, who have been tapped as the next managing partners for the firm’s Cleveland and Akron offices, respectively, see fostering relationships with growing companies in that sector of the market as one of several keys to realizing continued growth and maintaining a dominant presence.

Therefore, changing that perception will be one of their priorities in addition to doing more for their wide swath of existing clients.

“There’s a focus on identifying the smaller companies on a growth path,” Repasky said. “That’s one of our bigger opportunities in Northeast Ohio — that space. There is a perception we work with big companies, but there is a lot we have to offer. And there’s always room for tax (work), no matter how big or small you are.”

Repasky and Butler, both Northeast Ohio natives who’ve been with EY in the local market for many years, will officially assume their new roles effective July 1, which marks the start of the accounting and professional services firm’s next fiscal year.

The duo will work together in growing the firm’s Northeast Ohio

From left, Whitt Butler, Akron office managing partner, and Monte Repasky, Cleveland office managing partner (Tim Harrison for Crain’s)

The Cleveland Ernst & Young Tower in the Flats

business, which is served by some 1,300 employees and more than 300 CPAs, according to Crain’s research — a size that makes it the second-largest group in the global firm’s

central region in the U.S., behind Chicago.

In Cleveland, Repasky replaces Julie Boland, who has run the office since 2014. Boland was appointed in January to EY vice chair and central region managing partner. (She remains in Cleveland.)

In Akron, where EY has about 100 people, Butler succeeds Jerry Gootee, who has run that office since 2016.

Gootee, who will remain in the market and continue to act as global coordinating service partner on his accounts, is taking a role as Americas advisory leader for the diversified industrial products and automotive and transportation sector.

“Monte and Whitt are outstanding leaders,” said Boland in a statement.

“I have the utmost confidence in their experience, mindset and ability to lead the professionals of our Northeast Ohio offices to exceptional client service, continued growth and

dedication to the community.”

EY declined to disclose revenues per region or office. However, it’s clearly been on a growth path, marking its seventh consecutive year of growth.

The U.S. business reported $13 billion in revenue in its last fiscal year, which marked 6.7% growth over the prior years. That figure composes almost 40% of EY’s total global revenues.

Being that large, it’s almost surprising the firm has maintained an Akron location since the 1920s — of all the Big 4 firms present in this market, they’re the only one keeping an Akron office.

“It’s a big commitment for us, but the community has been good to us.

It’s also an opportunity to recruit and retain phenomenal talent,” said Butler, highlighting the nearby colleges in Akron and Kent where it’s aggressively seeking new students as the war for talent in the financial services field heats up.

Lots of opportunity The Cleveland office actually dates back to 1903, which is when one of their legacy firms, Ernst & Ernst, was established here. Ernst & Young was formed following a series of mergers. The firm’s current namesake came in 1989 when Ernst & Whinney combined with Arthur Young — the same year Repasky joined the firm.

Shortly after, the firm promoted a regional approach to business instead of offices working separately in silos. And that movement has continued to shape the firm’s business model today. That approach is now considered a best practice in the accounting and audit business.

Having such a long history has garnered major accounts for EY with

some of the region’s biggest firms.

But besides doing more work for legacy clients, Butler and Repasky emphasize the goal of drawing in new clients as well.

“We’ve experienced very positive growth in the Cleveland and Akron markets, and that’s another reason we’re continuing to double down on these markets,” Butler said. “We’re not pulling back because we’re global. These are key offices for us.”

Some industry observers expressed skepticism that will be a driving focus for the business — but that just further emphasizes that EY has an image in the market it needs to address.

The Akron-Canton region is not a “super-growth market” in the accounting industry, said Allan Koltin, CEO of Koltin Consulting Group, a Chicago firm specializing in advisement in the financial services industry. However, it’s one critical to firms like EY serving clients here. As far as other upper midsize firms moving into the market in recent years, including BDO and Sikich LLP, the sense is those firms are looking to work their way up toward Cleveland and nip away at the market share of the biggest players.

“Right now with the Big 4, they really are not about moving back down to the middle market. What they’re about is recreating the market positions they had pre-2002,” Koltin said.

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SEE ERNST, PAGE 22

Correction JJA Feb. 26, Page 12 story titled “Law schools get creative with their pitches” incorrectly stated the size of the first-year J.D. class at Case Western Reserve University School of Law for the fall 2017 semester. That class is composed of 134 students.

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Tower at Erieview lands money manager

By STAN BULLARD

“Having a tenant with Boyd Watterson’s stature remain in the (Nine Twelve) district validates the real progress it has made the last few years.”

sbullard@crain.com @CrainRltywriter

After decades at the Ohio Savings Plaza building, the Boyd Watterson Asset Management firm so needs to expand that it will exit the building before its lease expires and move to a full floor of the 40-story Tower at Erieview.

Brian Gevry, Boyd Watterson CEO, said, “We cannot wait. We’re bursting at the seams. We have people working at portable tables instead of work stations.”

Boyd Watterson is bound for the 29th floor of Erieview after an exhaustive search of the downtown market. The money management firm chose Erieview because the building has great views of Lake Erie and downtown, abundant parking and, most of all, large floors that worked best for the firm.

“In other buildings we might have been on two floors or part of a floor,” Gevry said, while the 1964-vintage tower’s floor matched its needs perfectly. In the end, he said, the rent was “in the same ballpark” as at more prominent, newer buildings.

Boyd Watterson, located at Ohio Savings Plaza, 1801 E. Ninth St., since the 1970s, most recently occupied the 14th floor of the building at 1301 E. Ninth St. Boyd Watterson was created in 2000 from the former Duff & Phelps firm.

Today, Boyd Watterson manages

— Michael Deemer, Downtown Cleveland Alliance director of business development

The 40-story Tower at Erieview has snagged the Boyd Watterson financial firm as a full-floor tenant. (Stan Bullard)

about $8 billion in assets for its clients. The firm has offices in Charlotte; Chicago; Bloomfield Hills, Mich.; Washington, D.C.; and Tampa, Fla. Its Northeast Ohio advisers and 50-person headquarters here.

“We’ve been growing at a compound annual growth rate of 20% the

last few years,” Gevry said, “and expect to continue to grow, though maybe not that much, in the future.”

That explains why the firm recently leased 20,300 square feet at the Tower at Erieview skyscraper at 1301 E. Ninth St., a 139% increase from its current 8,500 square feet. Gevry estimates

about 40% of the additional space is catching up and the remainder is for expansion. All told, the new suite will accommodate about 70 staffers.

Russell Rogers, a Colliers International Cleveland principal and senior vice president, represented Boyd Watterson in its search. He said the firm also considered locations outside Cleveland but decided to focus on remaining downtown. He said Erieview aced the deal with “attractive terms,” investing in building out the office and provided options for potential future expansion.

Neither Gevry, Rogers, nor Tom Fox, a JLL Cleveland senior vice president who represented the landlord, would disclose the rent. CoStar, the online real estate data provider, lists Erieview’s asking rent as $17.50 to $22.50 a square foot.

Fox said building owner RAIT Financial Trust of Philadelphia was excited to gain the financial firm as a new tenant because “it’s a significant deal.”

The transaction also proceeded despite a deal-stopper for many office leases: The Tower at Erieview is for sale. RAIT is narrowing its focus to lending and shedding its property holdings. RAIT even had pursued plans to convert about one-third of the office tower to residential rentals before its corporate change in course.

Gevry said his firm was assured the terms are such that the next owner must satisfy them.

“We did not want to lose nine months waiting for a new owner,” he said.

Boyd Watterson remaining in downtown Cleveland’s one-time financial district, now recast as the Nine Twelve District by Downtown Cleveland Alliance, is significant, according to Michael Deemer, the nonprofit’s director of business development.

“We’re excited they’re staying committed to downtown and delighted they are staying in the Nine Twelve District,” Deemer said. “Having a tenant with Boyd Watterson’s stature remain in the district validates the real progress it has made the last few years.”

Boyd Watterson is calling on some of its own expertise in the move. The firm owns more than 10 million square feet of real estate around the United States on behalf of its clients, so its staffers understand trends in building ownership and office design.

As a result, it has the Vocon architecture firm of Cleveland designing the space and will have contractor Cold Harbor Building Co. of Chardon build it in an amalgam of modern open office space with private offices.

“Sometimes you need solitude,” Gevry said. “We have some staffers who want some quiet while putting together a financial strategy.” The result, after gutting the floor and remaking it, will be 20 private offices, open areas and three conference rooms.

Boyd Watterson’s best current conference room is serving as a home for three cubicles, Gevry said, and one of its pressing space needs is finding a place for its three summer interns.

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True2U mentoring program expands presence in CMSD

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For students in the Cleveland Metropolitan School District, eighth grade is a big deal.

It’s when students need to start thinking seriously about what they want to do after graduation, so they can pick the best high school for them. In the Cleveland Metropolitan School District, students have dozens of high schools with different areas of focus — like the arts, environmental studies or manufacturing — from which to choose.

The aim of the True2U mentoring program is to help students better understand their strengths and interests as they make those decisions.

True2U is in its first year of being fully implemented throughout the district after being phased in over three years. From October through April, two to three mentors meet once a month with students in small groups to discuss topics like career exploration and high school choice.

The program is a collaborative effort between the Cleveland Metropolitan School District, the Greater Cleveland Partnership, the Neighborhood Leadership Institute, MyCom and the Northeast Ohio FaithBased Collaborative.

The Neighborhood Leadership Institute serves as the home base for True2U, said Molly Feghali, program director for True2U at the institute. The group manages the communications and training for the program, as well as the curriculum. Feghali said the True2U program recruits a diverse group of mentors from the business, nonprofit, government and faith-based communities to expose students to a “diversity of careers.” This year, there are close to 400 mentors, but True2U’s leadership would like to grow that to 600.

Students will often follow the path

Functional medicine clinic debuted in January in Beachwood lcoutre@crain.com @LydiaCoutre

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about their career and college choices, she said, and the True2U program helps them learn about the different choices out there. The mentors share their career paths, she said, as well as the mistakes they’ve made along the way, showing students that they can change their paths over time.

When the Greater Cleveland Partnership was getting involved with True2U, the group viewed it as a way to give back, said Shana Marbury, the regional chamber’s general counsel and senior vice president for education and workforce. But it’s also a way to expand the group’s work into younger grades.

The earlier students begin thinking about careers, the better it is for the talent pipeline, Marbury said.

Dominic Ozanne, president and CEO of Ozanne Construction Co., said it’s vital to connect employers and students at an early age. He served as a mentor at Miles School on the southeast side of Cleveland in True2U’s first year, took last year off and rejoined the program as a mentor at Luis Muñoz Marín this year.

Though he was frustrated and unsure if the program was making a difference after the first year, he decided to come back. Ozanne said he wants to help the students, and he believes workforce development is the key issue in the region. True2U is designed to expose students to their high school choices, and he saw most of the students choosing their local high school.

But Ozanne thought he could still end up making a difference in a student’s life, even if that was the case. Students may be too young to choose a career in eighth grade, but as a mentor, he can get them thinking about their career pathways and preparation.

Through True2U, students also get the chance to visit employers and colleges.

Marbury is a mentor herself and works with students at Douglas MacArthur Girls Leadership Academy.

Clinic vets self-fund new practice

SM

By LYDIA COUTRÉ

LEARN MORE J

their family members took, Feghali said, so True2U is an opportunity to get them thinking about what it is that they want. The curriculum is designed to “help with that transition” to high school, Feghali said.

Karen Thompson, chief of staff at the Cleveland Metropolitan School District, said the district has gotten positive feedback from students indicating that the True2U program has helped them feel more informed as they make their high school choices.

And True2U’s second-year report noted that active high school choice had gone up among True2U schools.

Thompson said the district previously had been working on goal-setting with eighth graders, but there was a missing piece: getting people from outside the district involved.

Bringing in outside volunteers lets schools and students show the community who they are, Thompson said, and the volunteers expose students to a wider range of jobs.

Karen Jones, administrator of Porter Wright Morris & Arthur LLP’s Cleveland office, has been serving as a True2U mentor at Luis Muñoz Marín school on Cleveland’s southwest side for the past two years, where many of the students are English-language learners. They don’t have all the supports that students in the suburbs often do, and because of that, they don’t always “dream big,” she said.

“The kids at that school don’t have the same exposure to the world that we do, that my kids did,” Jones said.

The mentors have practical experience to share with the students, she said, noting that she shares her background of switching from the automotive sector to law.

Irene Holifield, legal administrative assistant at Sherwin-Williams Co., has been a True2U mentor at Willson School on Cleveland’s east side for three years. Eighth grade is a year where students need to think

TAMPA

Two former Cleveland Clinic doctors have launched a new functional wellness practice hoping to help meet the region’s demand for holistic treatment that focuses on getting to the root causes of health problems.

Dr. Daniel Neides — whose column on Cleveland.com last year sparked widespread uproar for its anti-vaccine rhetoric — and Dr. Jessica Hutchins self-funded the endeavor and launched Inspire Wellness in January in suite 250 at 25700 Science Park Drive in Beachwood.

“There are not enough functional medicine doctors to deal with all the chronic diseases out there at all,” said Hutchins, who practiced as an OBGYN for 12 years before moving to functional medicine within the Clinic. “Obviously we believe in this way of treating chronic disease.”

Functional medicine focuses on the ways lifestyle factors, such as nutrition, sleep, exercise, stress, relationships and genetics, contribute to disease.

Traditional medicine has not always looked kindly at functional medicine.

The Cleveland Clinic opened a

Center for Functional Medicine in September 2014 and in 2017 moved it into a new, much larger space to meet the demand. The Clinic said the center was the first of its kind at an academic medical center.

Neides said that after his January 2017 Cleveland.com column was so negatively received, he was relieved of his administrative title. Though no longer chief operating officer of the Clinic’s Wellness Institute, Neides said he continued to see patients clinically until his contract expired in January of this year. The very next day, he and Hutchins opened Inspire Wellness.

The fallout from the column was part of his decision to open this new practice, but Neides had also gone back to school in recent years for an MBA and wanted to do something more.

Neides said he believes one of the biggest challenges facing medicine is not having enough time to spend with patients. Opening his own practice with Hutchins allows them to practice how they want, and a big part of that is sitting down with patients for longer periods of time and really working hand-in-hand to understand the patient’s history.

“If we’re really going to truly move the needle on improving our overall outcome as it relates to chronic dis-

ease in this country, we have to spend time really helping people understand what it means to focus on all things lifestyle,” Neides said.

Inspire Wellness coaches on five lifestyle “pillars” — nutrition, exercise, stress management, proper sleep/hygiene, and love and kindness. The target patient that Inspire Wellness hopes to attract is “anybody with a beating heart,” Neides said. Patients need to be highly motivated and ready to take responsibility for their own outcomes.

Oftentimes, patients turn to functional medicine when they are fed up with traditional medicine’s inability to deliver a diagnosis or satisfactory treatment.

Many turn to functional medicine when they’re desperate, Neides said.

“What we’re trying to do is not wait for people to get to that moment of desperation where they’re facing a life crisis,” he said. “The idea is … let’s get you on this really great path of wellness so that you can sustain this level of the way you feel, this high level of how you feel both emotionally and physically.”

Neides said he feels “rejuvenated” now that he can practice the way he wants to. “I can talk to patients without being filtered and really feel like I have their back every step of the way to getting them to that higher quality of life,” he said. “And that’s my calling.”

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TEAMINN finds home in Blue Star’s portfolio

By KEVIN KLEPS kkleps@crain.com @KevinKleps

As a former hockey coach, Donald Harkins was well aware of the frustrations associated with youth sports travel teams.

“Some team managers are really effective and on it,” Harkins said.

“And some are, ‘I can’t believe I got stuck with this miserable job. Here’s my room, and the rest is up to you.’ ” Seeing the latter be the case far too often led Harkins to starting TEAMINN, which books hotels at reduced rates for youth sports organizations, in 2013.

In 2016, TEAMINN’s digital platform was used to book 43,000 room nights, which the Wooster-based company said accounted for $6 million in hotel revenues. Last year, the room nights more than doubled, to 94,000, and Harkins said his company’s revenues increased 120%.

The rapid growth of a six-employee firm drew the interest of several investors in the booming youth sports market, and TEAMINN was recently acquired by Blue Star Sports, a Frisco, Texas-based organization that has scooped up 25 companies since it was founded in April 2016.

Harkins — a St. Edward High School graduate whose two brothers, Todd and Brett, were NHL draft choices — will continue to lead TEAMINN as its CEO. The 52-year-old said he will also serve as Blue Star’s vice president of travel, and his five other employees — including his fiancée, TEAMINN chief

A wall mural at TEAMINN’s Wooster headquarters displays the company’s “sleep well” motto. (Contributed photo)

How it works JJYouth

sports organizations quickly search the TEAMINN website for hotel rooms that meet their requirements.

TEAMINN’s staff then develops a customized plan for each trip.

JJThe Wooster company negotiates a

reduced room rate, and assigns a manager to work with each travel group.

JJEach

organization has a custom-branded reservation site, which includes login access and real-time reporting of room-night pickups.

operating officer Kim Kubiak — will remain with the newly acquired firm.

“It’s a simple business model. We broker hotel rooms and save sports parents money,” Harkins said.

And by working with the major players in the hotel business and the youth sports space, it’s worked. Harkins insists the room rates he’s able to get youth teams consistently are at least 10% cheaper, and what the hotels might give up in room money

they gain in occupancy.

Prior to the acquisition, Harkins said he “had to put the brakes on” TEAMINN’s growth, because it was so rapid and because he wanted to make sure the company was able to maintain what it believes is strong customer service.

Now that TEAMINN is aligned with a 450-employee company that seems intent on covering every possible base in the never-slowing youth sports industry, “all bets are off,” Harkins said.

STACK is on Blue Star team Blue Star Sports’ majority owner is Genstar Capital, a San Francisco private equity firm, but its more notable backers include Dallas Cowboys owner Jerry Jones and 32 Equity — the NFL’s investment arm.

Blue Star’s headquarters, as you might expect from its name, are at One Cowboys Way — the glitzy home of Jones’ NFL club.

In July 2017, the same month in which Blue Star became 32 Equity’s first youth sports investment, the company acquired STACK, a Cleveland

media company that at one time was known for its sports training magazines that featured the likes of a 20-year-old LeBron James on the cover.

The acquisition, Blue Star said at the time, supported its vision of giving “athletes of all ages” access to content and tools to boost their development.

But the move, as is typical with such private equity acquisitions, has resulted in some downsizing.

STACK co-founder Nick Palazzo told Crain’s that the company now has seven employees in its office in the Halle Building. That’s down from 20 in February 2015, when Crain’s published a story as STACK was celebrating its 10th anniversary.

At the time, STACK had recently acquired Velocity Sports Performance and was compiling a stable of more than 40 training centers in which independent owners paid the company a franchise fee and had access to the company’s many training resources.

But STACK divested the training centers prior to the Blue Star acquisition, and several top leaders have left STACK since last July — including co-founder

Chad Zimmerman and senior vice president of content Josh Staph.

Blue Star declined comment on the departures, but Palazzo — who is now Blue Star’s chief digital officer — said “STACK is doing well under Blue Star’s ownership, and we look forward to continuing to align with our sister companies.”

STACK’s plethora of training articles and videos are now being utilized by a youth sports conglomerate that says it has 45 million users in 32 countries.

Among the companies in the Blue Star portfolio are Bonzi, Pointstreak, Goalline, PrimeTime Sports and Krossover.

One of the newest acquisitions, TEAMINN, covers a crucial element — travel — in a youth sports industry that WinterGreen Research said last August is a $15.3 billion market. At the time, the industry had grown 55% in seven years.

Harkins — who is also the director of U.S. scouting for the WHL’s Prince George Cougars, for whom his brother Todd is the general manager — recently stopped coaching youth hockey because his time had been spread too thin.

Even after cashing in on the business he founded, he said he has no plans to also move on from TEAMINN. “We could keep doing the organization down here in Wooster, Ohio, and do very well, or we could team up with someone with robust cash and technology and take it to a whole new level,” he said. “That’s what we’re doing.”

Companies that have grown as rapidly as his might have 30-plus employees, Harkins said.

“That’s what makes us so attractive, right? We’re lean and mean,” he said.

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At the Table

New Sapphire Creek to bring Napa vibe to Chagrin Valley Forget thinking of Chagrin Falls as a sleepy little village, certainly where the dining scene is concerned.

In addition to new projects Joe coming to the Crea former Gamekeeper’s Taverne and Rick’s Cafe and changes coming to Yours Truly, plus just-launched lunch service at Grove Hill (all discussed in a recent column), comes a whole new spot debuting in a few weeks: Sapphire Creek Winery & Gardens, 16965 Park Circle Drive.

Unlike the other projects, all of which employ long-standing locations, Sapphire Creek is new from the ground up. The 11,000-square-foot building occupies space on a secluded 10-acre parcel on the property of Kathleen and Andy Dangelo.

“We always wanted to highlight how beautiful the property is,” Kathleen Dangelo said. “We only use a small portion of the land for a landscape and design company we have, so we did a feasibility study and found that there’s a huge need in the area for something like this.”

Rather than focusing on a restaurant alone, the couple expanded the concept to embrace one of their first loves: Napa Valley. They wanted to capture the beauty of California wine country and transport it to the Chagrin Valley.

“We’ve always loved Napa Valley, and wanted to bring that experience to Northeast Ohio,” Dangelo said.

“We realized we could bring together great wine and great food, and we could bring in that architectural design style.”

To do so, they commissioned construction of an expansive, atrium setting composed of 28-foot barn wood ceilings, expansive window walls and a 32-foot-long white porcelain bar with Italian leather chairs and moonshaped lights.

Those vast windows overlook a wooded nature preserve, a covered patio with a fireplace and a 28-foot reflecting pool. A wine cellar and lounge are set below.

The Dangelos are working with a private Napa Valley vintner to produce a line of signature wines for Sapphire Creek. Varietals will include a cabernet sauvignon, chardonnay, sauvignon blanc, rose, pinot noir and a propriety house red. All will bear the Sapphire Creek label and be poured on premises, included on tasting menus, and sold at retail.

To create a casual yet creative menu for the cellar and restaurant, Kathleen Dangelo turned to an old friend, Kimberly McCune Gibson.

A devout beekeeper and chef, fans know her as co-owner of catering company Hungry Bee and Cultivate, a smoothie and juice bar in Chagrin Falls. A 2003 graduate of the Culinary Institute of America in Hyde Park, N.Y., she and her husband, Jimmy Gibson, worked together when she was a manager and he served as chef at Red the Steakhouse in Beachwood.

“Anyone who knows me knows how important sustainably grown produce and local ingredients are to me,” McCune Gibson said. “There are a lot of restaurants that talk about that, but in putting together a menu

Owners Kathleen and Andy Dangelo wanted to bring a Napa Valley feel to Sapphire Creek Winery & Gardens in Chagrin Falls. (Contributed photos)

Changes for Red Restaurant Group

The Dangelos are working with a private Napa Valley vintner to produce a line of signature wines for Sapphire Creek.

for Sapphire Creek, I walk my talk.

We’ll be supporting local growers, the independent farmers and purveyors.

“How would I describe the philosophy behind the style of our food? It would be a high-end dining experience with a casual feeling.”

Entree prices will range from $16 for the house burger with handmade tots to $39 for the 16-ounce boneless ribeye with mashers, crispy onion and chilled green bean salad. A quick review of the debut menu includes beef short ribs with herbaceous fingerlings, crispy leeks, roasted Cipollini onions and shiitake mushrooms and pan jus; jumbo scallops and gnocchi with bacon lardons, shallots, pea tendrils and basil pesto cream; and a crispy half chicken with sticky Korean barbecue sauce, a cornbread Thai chili fritter, and snap peas with garlic, ginger and sesame.

Other offerings include a selection of flat breads, roughly a dozen sharable plates, salads, soups and a quartet of desserts, including the Big Ass Chocolate Cake —“Enough Said,” proclaims the menu — priced at $14.75.

McCune Gibson sees Sapphire Creek’s planned March 20 opening as “the pinnacle of my career.” That’s a lofty peak for a 36-year-old chef.

“That’s because Kathleen and Andy have taken our vision to the level we could never have imagined,” McCune Gibson said. “It’s not just humbling; we’re truly honored. And it’s not just about the food and the ambiance. It’s about a true and complete experience. When you walk into this building, you’ll see this all come from love — of community, the great passion for what we all do, and our ‘guests-first’ spirit.

“To say we’re thrilled about this is an immense understatement.”

Rumors have been colliding for quite a while regarding changes in the Red Restaurant Group operations.

Brad Friedlander, whose Moxie the Restaurant and Red the Steakhouse are longstanding landmarks on the local dining scene, cleared the air.

“There’s been a restructuring — a change in ownership, not in operations,” the group’s founder said.

“With the restaurant opening in Pittsburgh, we had the opportunity to sell the downtown Red (at 417 Prospect Ave., Cleveland), which enabled us to consolidate our debts and look to the future,” Friedlander explained.

In the immediate future, that means a planned move for Red from the current Beachwood location to a space in the new Pinecrest, the $230 million development by Fairmount Properties at I-271 and Harvard Road in Orange Village. Friedlander anticipates a July opening.

That will leave open Red’s current home, behind Moxie. Seeing the need to freshen that longstanding destination, Moxie will temporarily move to the Red space while its environment gets a facelift. And when Moxie eventually goes home (no timeline has yet been specified), Friedlander will be left with an open space ready for a new concept.

“That’s really still up in the air,” he said. “I’m in Miami right now, and looking at least a half-dozen concepts down here. I love Latin food and would love to do a taqueria, so that’s up for debate, and we’ve also wanted to do an upscale Chinese place.

“We’ll be talking about what’s next, sometime soon.”

Restaurant Week reminder Starting Monday, March 5, through Friday, March 16, Cleveland Restaurant Week opens its door to great, bargain-priced eats at some of Northeast Ohio’s best restaurants.

Hosted by Cleveland Independents, a group of privately operated restaurants, Restaurant Week offers — in most cases — a three-course meal priced at $33 per person, at about 40 area restaurants. (Participating restaurants reserve the right to vary prices, sometimes lower at lunch. Prices typically excludes beverages, tax and tip.)

Care to review the menu options, hours and other details? Visit the organization’s website, clevelandindependents.com.

CRAIN’S CLEVELAND BUSINESS

CENTER

CONTINUED FROM PAGE 1

Convention center supporters argue the cost of a convention center is returned to a community by the visitors who pay for airfare, hotel rooms, rental cars and restaurant meals.

Those purchases create jobs and generate sales and hotel bed taxes. Those job holders, in turn, pay more taxes.

A study released last month by Oxford Economics, an economics forecasting consultancy based in England, found that the average meeting participant in 2016 spent $1,294 and that direct spending on meetings has grown 23% between 2009 and 2016.

David Gilbert, president of Destination Cleveland, the local convention and visitors’ bureau, believes the center is paying off for the community, beyond the dollars and cents — which turn into jobs and taxes — that convention visitors spend in the two, three or four days they spend in the community.

“We are in the midst of changing the perception of Cleveland,” he said.

“And the number one way to do that, by far, is by bringing people to town and having them see it themselves.”

Gilbert added that changing the perception of the community among convention visitors can have longterm effects. Those visitors, he said, “can be key to attracting new talent, they can be key to attracting new businesses, they can be a key to attracting business investment.”

And changing that perception starts at the convention center. A subpar building would negate the attraction of the hotels and restaurants in walking distance that visitors laud.

That does not appear to be the case.

“They built a great facility,” said Scott Durkin, vice president of partner development at Experient, a Twinsburg firm that manages events across the country, formerly known as Conferon. “The center’s space is excellent; staffing there is excellent.”

When meeting planners like a building, that turns into more convention business. And Experient meeting planners are having good experiences at the Huntington center.

“Cleveland for the last two years has broken into our top 30 as far as destinations that we book,” Durkin said. “Preceding those years, the city hadn’t even been in the top 50.”

The Huntington center hopes to get another similar boost this summer when the Professional Convention Management Association brings its 2018 PCMA Education Conference to Cleveland in June. Mona Cotton, the association’s chief development officer, said hosting the Republican National Convention raised the city’s profile but that the center itself is attractive to meeting planners.

“The Huntington Convention Center and its exhibit halls — the power supply, the access to water, just how they designed the exhibit halls — they made it convenient for trade shows,” she said. “And it’s very compact, but not small.”

A long time coming Cleveland had been out of the running for most convention business for decades before ground was broken for the new convention center in 2011.

The city of Cleveland had built a convention center underground, below the Mall, that had opened in 1964. But a decades-old building doesn’t attract convention planners who see newer, more up-to-date centers in other cities.

The National Pavement Expo & Conference was held in the Huntington Convention Center in February. (Huntington Convention Center of Cleveland)

A $28 million sprucing-up in the mid-1980s didn’t stop the decline.

Over the years, various mayors, county commissioners and independent panels would propose new convention centers at various places along the lakefront, behind Tower City Center, as well as on the site of the existing convention center.

In 1994, Lee Howley, then chairman of the Greater Cleveland Convention and Visitors Bureau, the predecessor of today’s Destination Cleveland, suggested that the city of Cleveland, which owned the convention center, consider building a new center on a lakefront site near North Coast Harbor.

“The bureau has campaigned for more than a year to obtain support from the city and Cuyahoga County to replace the aging Cleveland Convention Center,” he told Crain’s in 1996.

“The downtown center contains 375,000 square feet of meeting space, but is sliced up by columns and is beset by a parking shortage — two factors that make it less marketable than newer venues in other cities.”

Cleveland Mayor Michael White did not follow through on Howley’s suggestion, and White and his successor, Jane Campbell, considered but never followed through on several more trial balloons over the next decade.

Meanwhile, on a separate track, the idea for a showroom for medical technology, first called a medical merchandise mart, was being developed by a group of the city’s civic, business and medical leaders. The idea, in 1982, was to use the building behind Terminal Tower that the U.S. Postal Service was leaving for new quarters on Woodland Avenue.

However, in March 1982, Crain’s reported that the medical mart “is only a gleam in the eyes of the city’s business and medical communities.”

The project’s backers conceded that the project lacked, among other things, a private investor willing to take a major financial risk on the project. Two years later, Forest City Enterprises Inc., which then owned the former post office building, announced the idea failed to attract tenants and the project died.

But in 2004, when he was being interviewed for the job as CEO of the Cleveland Clinic, Dr. Delos “Toby” Cosgrove recalled meeting a businessman who said he was considering a development in Dubai that would include a hotel attached to a building like Chicago’s Merchandise Mart, that would specialize in the medical and health care products.

“I suggested that one of the ways we could stimulate the economy of Northeast Ohio was with a mart that brought together the latest and greatest technology in health care,” he recalled for Crain’s in 2013. “Tim Hagan really

picked up the ball and ran with it.”

Hagan was a county commissioner at the time, and a longtime friend of the Kennedy family that owned the Merchandise Mart, a massive building with permanent showrooms for vendors of furniture and home furnishings. He called Chris Kennedy, then president of Merchandise Mart Properties Inc., or MMPI, the building’s operator.

The two ideas — a medical mart and a new convention center — were quickly joined and Cuyahoga County commissioners picked up the ball

and ran with it. In 2007, after reaching agreement with MMPI to run a new convention center/med mart complex, they voted to raise the county sales tax by 0.25% to pay for what was expected to be a $450-million complex.

Two years later, after looking at sites in the Flats, behind Tower City Center and in Midtown, the commissioners chose to put their new project on the Mall, with a plan to replace the underground convention center and build a medical mart building at the southwest corner of the Mall. As the project progressed, the county found that the sales tax would be able to support building an attached, 600-room hotel, an important amenity for a convention center. The Hilton Downtown Cleveland opened in 2016.

Staying relevant In 2017, the complex on and under the downtown Cleveland Mall attracted 222,656 visitors to 222 events.

Among the larger events were the National Pavement Expo, Wizard World Comic-Con and the Content Marketing World convention. Those numbers were slightly off from 2016, when the building attracted 235,681 visitors to 235 events.

Fifty-six events are already on the books for 2018, 31 for 2019 and 20 for 2020. Most of these far-in-advance bookings are major events, attracting 1,000 people or more. Smaller events

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PA G E 7

have shorter lead times — typically months, not years.

Though it is only five years old, the convention center managers are already tinkering with the building, to keep up with the changing convention business.

“Our industry is shifting away from exhibit-hall shows to into more meeting-intensive shows,” said Ron King, who runs the operation as the general manager of SMG, the company hired to manage the center. “One of the things we’re in need of is meeting space.”

Centers now want more than half their space to be meeting rooms.

Cleveland’s convention center has about 41%, according to Dave Johnson, the center’s director of public relations and marketing. The hall has 35 meeting rooms. It’s now building out space on the second floor of the Global Center, which will add between six and eight meeting rooms, taking its meeting room percentage over 50%.

The center operates with a subsidy from Cuyahoga County. The subsidy is budgeted at $5.4 million, but George Hillow, the executive director of the Cuyahoga County Convention Facilities Development Corp. (CCCFDC), said that subsidy ran only $2.3 million last year due to cost cutting and increased revenue. The CCCFDC is the quasi-public agency that oversees the convention center, the Global Center and the hotel, which is owned by the county.

SEE CENTER, PAGE 19

TWENTY IN THEIR 20s

NOMINATIONS OPEN! NOMINATION DEADLINE: MARCH 13, 2018 This year, Crain’s Cleveland Business will single out 20 up-and-coming professionals who haven’t turned 30 yet. While their names might not be top of mind and they likely haven’t made their first million yet, there’s no denying these young professionals are making a mark on Northeast Ohio.

DO YOU KNOW A 20-SOMETHING WE SHOULD KNOW ABOUT? This year’s class of Twenty in their 20s will be profiled in the June 11 edition of Crain’s Cleveland Business and honored at a networking reception in June.

VISIT CRAINSCLEVELAND.COM/NOMINATIONS TO NOMINATE

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“H ners Carl HIM Inno furth form prog of he Jo for 3 wor belie good “A thro ter — secu tion wer Th five nou Cor bios mov al C of th buil and Si and profi have sup and con vest ope post bus tech Th

PA G E 8

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CRAIN’S CLEVELAND BUSINESS

Opinion Personal View

Mr. Beams has had a wild ride in Cleveland

By RAY LEACH

Editorial

A step backward The Republicans who have controlled Ohio’s government for the last several years have characterized bureaucratic red tape as public enemy number one. Our lieutenant governor, Mary Taylor, even helms the so-called Common Sense Initiative, which is designed to tear down Ohio’s bloated regulatory structure to make it more friendly for business — something we, as a business publication, can certainly appreciate.

But when it comes to the state’s poorest and most vulnerable residents, lawmakers are more than eager to put up roadblocks — the latest being with Medicaid, the joint state-federal health care program for the poor.

Last month, the Ohio Department of Medicaid — on orders of Republican lawmakers who in the state budget demanded such a move — released details outlining a plan to seek federal approval to create job requirements as a condition to qualify for Medicaid. The move was made possible by the Trump administration, which is doing everything in its power to chip away at the Affordable Care Act. It’s a disappointing development in a state that surprised many by going forward with the Medicaid expansion made possible by the ACA. It’s also bad policy.

Proponents are framing the work requirement as impacting only a small portion of those enrolled in the program, given that it carries a laundry list of exemptions.

The state estimates 5% of the 700,000 enrollees afforded by the ACA — about one in 20 — could lose coverage if they don’t have a job for at least 20 hours a week, attend school or job training.

That 20-hour requirement is muddled at best considering the fluctuating work schedules afforded to many low-wage workers. Think about the seasonality of some jobs like those in landscaping or retail.

Such a requirement, which the state expects will bring down Medicaid costs by about $30 million in the first year, will require significant administrative buy-in (and headaches) — some-

thing that seems especially silly for impacting such a small population.

Kentucky estimates similar changes it’s seeking could bring $187 million in upfront costs, and many believe other states seeking like-minded waivers could see similar numbers.

But also, if history is our guide, that one in 20 figure is a lowball estimate — and that’s what makes this so concerning.

In 2013, for example, the state of Ohio resumed a work requirement for its food-assistance program, and almost 400,000 people have trickled out of the program. That’s twice as many as was expected. According to a report from the Cleveland-based non-partisan Center for Community Solutions (CCS), while an improving economy could have contributed to some of that number, work requirements “seemed to generally have a depressive effect” on enrollment in the program.

Broad disenrollment in Medicaid could have ripple effects throughout the economy, particularly in Cuyahoga County, which boasts several medical institutions who rely on Medicaid dollars as crucial slices of their operating revenue.

And we aren’t just talking about major hospital systems like the Cleveland Clinic or University Hospitals, but rather the community health centers serving the county’s poorest residents. Look to rural counties, whose hospitals are under immense pressure, and the impact could be far greater.

People having health insurance — even government-funded health insurance — is a good thing.

Putting the humanitarian argument aside (which really should be the best argument), expanded Medicaid eligibility has been a good deal for the state of Ohio.

The state’s Medicaid department affirmed as much in a late 2016 report that said enrollment among this population made it easy to buy certain necessities like food and housing. It also helped people stay in and find jobs.

And ultimately, putting any cracks in that foundation would be irresponsible.

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

CLEVELAND BUSINESS

CLEVELAND BUSINESS

Managing Editor:

Scott Suttell (ssuttell@crain.com)

Sections Editor:

Timothy Magaw (tmagaw@crain.com)

Contact Crain’s:

216-522-1383

A little more than a month ago, local LED lighting company Mr. Beams was acquired by fast-growing California home security startup Ring. At the time, it seemed like an ideal finale for an awesome startup, led by two great co-founders in David Levine and Michael Recker.

Only it wasn’t the finale.

Turns out, the culmination of this startup story came on Feb. 27, when Amazon.com announced it was acquiring Ring in a massive deal estimated to be worth more than $1 billion, giving Mr. Beams’ innovative LED lighting technology — developed right here in Cleveland — a home at one of the world’s largest retailers.

Leach Just as it made sense for Ring to acquire Mr. Beams, it also makes perfect sense for Ama- It took zon to acquire Ring. Google’s parent compa- years of ny, Alphabet, already owns one of Ring’s pri- work for mary competitors, Nest Labs; and, as one national source covering the deal pointed out, Mr. Beams this may not be a play solely for the smart- to get home and security markets — it could also themselves help Amazon in its long-term goal of enabling in the right easy delivery of packages inside homes.

Other sources are also projecting Amazon position, will keep Ring’s brand and operating struc- but once ture largely intact, as they have done in past they were acquisitions such as Audible and Zappos.

That would be more good news for our re- there, gion, since Ring had already announced its things intention to keep Mr. Beams and their prod- escalated uct line as a separate division — known as quickly.

RingBeams — in Northeast Ohio.

Partnering with Amazon and other retailers to sell their innovative products was one of Mr. Beams’ pillars of growth over the last decade, alongside the steps they took to protect their valuable intellectual property.

Those of us who were fortunate enough to work with Levine, Recker and their team during this time could sense good things were in store for Mr. Beams. When the company was acquired

by Ring, we talked about how they had spent the last decade growing patiently by using their capital efficiently — they raised only $1.1 million in total funding — building a small but mighty team and focusing on customer traction.

But if their steady climb to prominence was a great Midwestern growth story — their rapid exit has been a textbook example of just how fast things move in the startup world once the momentum has built and all the pieces finally fall into place.

It took years of work for Mr. Beams to get themselves in the right position, but once they were there, things escalated quickly. In fact, Ring announced their acquisition of the company a mere six months after founder Jamie Smirnoff first visited their Cleveland headquarters during the 2017 NBA Finals.

Now, a month after that acquisition, the Mr. Beams team is part of the world’s biggest online retailer.

It can happen that fast.

It’s enough to make your head spin. It’s also more proof globally relevant startups can come from anywhere, and you can spend 10 years growing your company smartly and efficiently and end up with a truly world-class outcome.

Leach is CEO of JumpStart Inc.

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

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

Please include a telephone number for verification purposes.

CRAIN’S CLEVELAND BUSINESS

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BEING INDEPENDENT ALLOWS US TO MAKE OFFERS LIKE THIS.

Letter to the Editor

Cleveland Hopkins Airport is in desperate need of an overhaul What is going on at Cleveland Hopkins Airport?

I am a frequent traveler. I have been to hundreds of airports around the world. Sadly, Cleveland has one of the worst-run airports for a major metropolitan area.

Here is a partial list of the reasons why: J Distant dropoff of remote parking, Uber and Lyft passengers (long walk to terminal) J Poor location of the rental car pickup buses in the arrivals area (dangerous for passengers) J Crowded ticketing area (poor layout) J Inadequate seating in the A and B concourses, especially for Southwest Airlines J Empty concourse D terminal, which could be used

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to attract other airlines to make us a “feature” city, or even a small hub (Note: United is still paying on their lease, which runs through 2029.)

As I travel, I see more progressive cities expanding, and when required, completely rebuilding their airports. I am of the opinion Cleveland must seriously consider rebuilding its airport, as the current facility underserves this large metropolitan area. This very poorly managed facility desperately needs new leadership with the vision to carry our region forward in the years to come.

Jim Rundo Chesterland

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Re: Steel and aluminum tariffs on the way What alternative exists to address the U.S. steel industry continuing to run at approximately 75% capacity since 2008 while hot band coils continue to show up at our ports? If we don’t do anything, will it be OK once the U.S. steel industry doesn’t exist anymore and all the steel we need for autos will be imported? Fair and equal trade needs to occur, which I realize isn’t a simple topic. — Steel Future I attended a steel manufacturers meeting a couple of weeks ago, and for the first time in years there is hope in this industry that the unfair steel dumping and associated detrimental impacts to our steel industry and downstream support jobs, equipment manufactures, etc., will cease. Finally we have a president who is looking at what is best for the country and the working people. If auto manufacturers and others have to pay a little more for steel, so be it, as long as the manufacturers also are doing so in the U.S. and further creating jobs. It’s time to start putting America first! — Marty Ellman Careful what you wish for. No one wins in a trade war. U.S. exports have been at the front of our economy for years. Ignorantly, the current administration is doing everything it can to encourage inflation and an inevitable recession. And with the recent unnecessary tax reductions, we lost the next “bailout.” — Scott Vranic

Re: Browns’ sales pitch for 2018 Boycott the Browns until they either create a winning team or are forced to move to another city. Either would be preferable to their current incompetence. — Bob Fritz

Re: Crystal Clinic to build orthopedic hospital in Fairlawn What a great concept! Congratulations to Crystal Clinic for bringing this idea to Northeast Ohio. Love the idea of a specialty hospital that specializes in the surgeons’ existing strengths. How refreshing to have a new choice in health care! Cleveland Clinic, UH and now Crystal Clinic! — S.W.

PA G E 10

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CRAIN’S CLEVELAND BUSINESS

Bank of America’s brand grows in Ohio BLOOMBERG

PROMOTE. Why not?

35th Anniversary

35th Anniversary

CLEVELAND BUSINESS VOL. 36, NO. 47

NOVEMBER 23 - NOVEMBER 29, 2015

ALLYSON O’KEEFE, 37 Partner; Porter Wright

35th Anniversary

CLEVELAND BUSINESS

VOL. 36, NO. 47

NOVEMBER 23 - NOVEMBER 29, 2015 Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a summer internship there as a Case Western Reserve University law student. Since then, she has worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been promoted to real estateALLYSON partner.

O’KEEFE, 37 “Young professionals who live downtown are so excited about the city,� said O’Keefe, a Partner; Porter Columbus native who lived downtown forWright 10 years before moving to Rocky River. “The ones who aren’t from here are often more excited about it. When you move here from somewhere else, you don’t for granted.�

VOL. 36, NO. take 47 it Allyson NOVEMBER 23 - NOVEMBER NOVE EMBER 29, 29, 2015 201 O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship there as a Case Western Reserve University law student. Since then, she has be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been proWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estateALLYSON partner.

O’KEEFE, Just seeing what Cleveland has gone through in the time that I’ve 37 been here, there’s obvious“Young professionals who live downtown are so excited about the city,� said O’Keefe, a ly a lot of excitement around real estatePartner; development.

I started in 2004 when we were crazy Porter Columbus native who lived downtown for Wright 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you don’t take it for granted.�

Allyson O’Keefe started her legal career eer at Porter Wright in 2004 after comple completing etin ng a sumsumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship as a Case Western Reserve University law student. Since tthen, hen, she sh he has has WORKED ON there ARE MIXED-USE URBANnPROJECTS. IS MANY OF THE PROJECTS YOU be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across ss Cleveland, including Flats East Bank, The The THAT AN AREA OF EXPERTISE? Metropolitan at the 9, Uptown in every University and Steelyard Commons, and rsity d has has ha s been be een proproro Yes, definitely. Real estate is extremely interesting because deal Circle is differWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estate ent. You can never get bored because there’s so partner. much variety there, from tax Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obviousown are O’Keefe e, a “Young who live downtown so excited about the city,� said O’Keefe, credits to historic renovations, from professionals ground-up development to rehab, from ly a lot of excitement around real estate development. I started in 2004 when we were crazy Rive er. “The “T “The ones ones mixed-use to residential. Columbus native who lived downtown for 10 years before moving to Rocky River. busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited xcited about it. When you move here from m somewhere som somew ewhere ere the downturn, then I saw it rise again, even stronger than before locally. else, you LEADERSHIP don’t take it for granted.�

YOUR STYLE? HOW WOULD YOU DESCRIBE

CLEVELAND BUSINESS USINESS

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O’KeefeI expect is not working or spending timeI work, children, she can with her husband and two child dre en, sh he c he an I definitely believe in leadingWhen by example. the people withding whom MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the very boards off nonprofit and watching college collle eg ge football. foo fo ottball. my associates, to work hard, and they see me working hard.

For me, it’sorganizations all THAT AN AREA OF EXPERTISE? about working hard and doing good work.

Yes, definitely. Real estate is extremely interesting because every deal is differWHAT INSPIRES YOU ABOUT YOUR WORK? RK? ent. You can never get bored because there’s so much variety there, from tax hrough th here e’s obviousobviousus Just WHAT seeingWAS whatITCleveland has gone the time that I’ve been here, there’s LIKE TO WORK WITHthrough O’KEEFEinON WHAT OTHERS ARE SAYING: credits to historic renovations, from ground-up development to rehab, from ly a lot of excitement around real estate te development. I started in 2004 when we we were were e crazy crazy THE FLATS EAST BANK PROJECT? mixed-use to residential. busy with development. of the boom from ’04 through ’08. I saw itt go go through th hrough “Allyson is extremely bright and quick witted, butThat whatwas trulysort distinguishes her the downturn, then I saw itpeople rise again, even from most successful attorneys is her exceptional skills.

Shestronger has an than before locally.

HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? uncanny ability to encourage the ‘adversaries’ in her negotiations to work in I definitely believe in leading by example. I expect the people with whom I work, OF THE PROJECTS YOU YOU WORKED Wsaid ORKED ON ON ARE ARE MIXED-USE MIXED-USE URBAN URBAN PROJECTS. PROJECTS. IS IS concert with her to achieve win/win MANY solutions to difficult problems,� my associates, to work hard, and they see me working very hard. For me, it’s all THAT AN AREA EXPERTISE? TISE?of the Scott Wolstein, CEO of Starwood Retail Partners andOF co-developer about working hard and doing good work. e is extremely interesting because every deal deal is differdifferrYes, definitely. Real estate Flats East Bank project. ent. You can never get bored there, red because there’s so much variety the ere, ffrom rom m ttax ax — Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON credits to historic renovations, tions, from ground-up development to rehab, re ehab, from fro om THE FLATS EAST BANK PROJECT? mixed-use to residential. “Allyson is extremely bright and quick witted, but what truly distinguishes her

successfulInc. attorneys is reserved. her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. Š 2015from Crainmost Communications All Rights YOU DESCRIBE RIBE YOUR YOUR LEADERSHIP LEADERSHIP STYLE? STYLE? HOW WOULD ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040

I definitely believe in leading ding by example. I expect the people with h whom whom m I work, rk concert with her to achieve win/win solutions to difficult problems,� said my associates, to work hard, and they see me working very hard hard. d. For For me, me e, it’s all a Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the about working hard and doing good work.

Flats East Bank project.

— Lee Chilcote YING: WHAT WHAT WAS WAS IT IT LIKE LIKE TO TO WORK WORK WITH WITH O’KEEFE O’KEEFE ON ON WHAT OTHERS ARE SAYING: THE FLATS EAST BANK PROJECT? PROJECT? “Allyson is extremely bright right and quick witted, but what truly distinguishes dis stin nguish hes her hes

skills s. She She has has an ha successfulInc. attorneys her exceptional people skills.

Reprinted with permission from the Crain's Cleveland Business. Š 2015from Crainmost Communications All Rightsisreserved. ourage negotiatio ons to to work w wo orrk k in n ability to encourage the ‘adversaries’ in her negotiations Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040

hieve win/win solutions to difficult probl bllem ms,� s,� said concert with her to achieve problems,� co-deve evel velo ve elo el ope pe er off the the e Scott Wolstein, CEO off Starwood Retail Partners and co-developer ct.

Flats East Bank project. — Lee Le Ch Chilcote C

Reprinted with permission from the Crain's Cleveland Business. Š 2015 Crain rain Communications nss IInc Inc. nc. nccc. All n Al Rights Rig rese reserved. rved d.

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Bank of America Corp. plans to open 500 branches across the U.S. during the next four years, including an expansion of its retail business into Ohio.

Consumer-banking services will be available in Cincinnati, Cleveland and Columbus, the Charlotte, N.C.-based firm said Monday, Feb. 26, in a statement. The bank plans to hire more than 5,400 workers as part of the expansion. It had 4,470 U.S. branches and a workforce of 209,000 at year-end.

The firm already offers commercial and business banking, as well as wealth management, in Ohio. The bank cut its U.S. branch count by more than 600 offices in the four years ended December 2017. “We continue to deploy significant resources to meet the changing needs of an expanding client base,�

Thong Nguyen, co-head of consumer and small-business banking, said in the statement.

The company said in the statement that it currently provides commercial and business banking, as well as wealth management services through Merrill Lynch, “to more than 775,000 relationships across Ohio.�

The growth in Ohio, it said, “follows recent similar expansions into Denver, Minneapolis and Indianapolis.� Bank of America also recently announced future plans to expand in Pittsburgh.

The new centers will focus on adding as many meeting spots as possible for clients to talk to staff about mortgages, retirement saving, small business loans and other products, said Dean Athanasia, co-head of the firm’s consumer banking and small business operations. “There’s less a need for a big, giant,

“There’s less need for a big, giant, grandiose lobby. We want to build it for our clients, not for us.� — Dean Athanasia, co-head of Bank of America’s consumer banking

grandiose lobby,� Athanasia said in a phone interview with Bloomberg. “We want to build it for our clients, not for us.�

Bank of America jumped ahead of Wells Fargo & Co. to become the U.S. bank with the second-largest deposit base in 2017, according to Federal Reserve data. JPMorgan Chase & Co. is first. Profit from Bank of America’s consumer division increased 14% to $8.2 billion last year, the second-largest advance among the firm’s four major segments.

Even with the new branches, Bank of America’s overall retail network could dip below its current count for a time, Athanasia said. That’s because Bank of America is continually weighing whether to close branches, based on factors such as proximity to other locations, nearby competition and lease considerations, he said. “More often than not, we’ve closed branches where we had a lot of overlap, or they were in some locations where we didn’t have critical scale,�

Athanasia said.

Customers using the bank’s technology services have also reduced the need for so many branches, Athanasia said. Apps now handle the deposit-taking volume of 1,200 financial centers, he said.

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Focus

MEETING & EVENT PLANNER

WITH A LITTLE HELP FROM THE ROCK HALL’S FRIENDS

Pop punk pioneers Green Day were one of the largest draws for the 2015 induction ceremony at Public Auditorium. (Photographs by Michael Zorn)

Bringing the inductions back to Cleveland every other year requires significant local buy-in

By TIMOTHY MAGAW tmagaw@crain.com @timmagaw

C

atching Paul McCartney and Ringo Starr perform a few tunes in an intimate 5,000-seat concert hall isn’t usually a possibility in Cleveland — or anywhere, for that matter.

So when it was revealed McCartney would do the honors of enshrining his fellow Beatle at the 2015 Rock and Roll Hall of Fame induction ceremonies in Cleveland — the last time the event was held here — the idea of a partial Fab Four reunion on the same Northeast Ohio stage they shared during a 1964 concert generated considerable buzz.

It’s reunions like those that make the ceremonies special for music fans, of course, but they also carry significant heft for the regional economy, according to local officials, which is why they consider it a coup of sorts that the inductions are now poised to return to Cleveland every two years following this year’s sold-out event, which takes place April 14 at the 96-year-old Cleveland Public Auditorium. This year’s inductee class includes Bon Jovi, The Cars, Dire Straits, The Moody Blues, Nina Simone and Sister Rosetta Tharpe.

Moreover, the relatively recent decision by the Rock Hall’s foundation to host the induction ceremony in

The Beatles’ Ringo Starr and Paul McCartney share a moment on stage.

Cleveland every two years, pending funding, is evidence of the Rock Hall’s maturation as an institution and the city as a world-class competitor for major events. The ceremony also returns to Cleveland as many of its major assets — like the Hilton Downtown Cleveland Hotel — came online in the run-up to the 2016 Republican National Convention.

The induction reportedly generates $50 million in media value for the Rock Hall and the city, and the program also boosts the museum’s $100 million annual economic impact by, on average, $15 million to $20 million. It’s also estimated that 74% of visitors during induction week will be traveling from outside of Cleveland. That’s particularly important for Destination Cleveland, the regional convention and visitors bureau, which is now scheduling tours with major media outlets and event planners who wouldn’t be coming to the city if it weren’t for the induction ceremonies.

“The more these types of events are held in Cleveland, it helps our local sense of self-confidence,” said David Gilbert, president and CEO of Destination Cleveland. “We are chosen to host these things because we do an extremely good job of doing it. That includes the Rock Hall inductions. They don’t happen here by accident. We have the Rock Hall here, but the board of the Rock and Roll Hall of Fame Foundation wouldn’t have kept it coming back if the community didn’t do a good job of hosting.”

SEE ROCK HALL, PAGE 12

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MEETING & EVENT PLANNER

ROCK HALL CONTINUED FROM PAGE 11

Here comes the fun The Rock Hall museum opened its doors in 1995 in Cleveland, but the organization’s first induction took place in 1986. Since then, only four have been held in Cleveland, and the city’s first in 1997 was closed to the public.

In a 2016 interview, Rock Hall foundation CEO Joel Peresman said Cleveland “really just came around in the past few years to being able to afford to do the fundraising they need to do for an event of this size.”

A spokesperson for the Rock Hall said expenses related to the inductions — which, once edited, air on HBO — hover around $6.8 million.

A funding stream that has proven critical to the induction ceremony is revenue generated from Cuyahoga County’s hotel bed tax. A 1.5% portion of the tax revenue had been set aside to pay for the construction of the Rock Hall. It was set to expire in 2014 once the bonds for the project were paid off, but council extended the tax and directed that 1.5% to Destination Cleveland. Destination Cleveland, in turn, directs 25% of that amount — just north of $1 million annually, according to Gilbert — to pay for the local induction ceremonies.

“Without the bed tax, we could not hold the inductions in Cleveland on a regular basis,” Rock Hall president and CEO Greg Harris told Crain’s during a recent interview. “That’s the predictable resource that allows us to

Stevie Wonder performs in Cleveland alongside 2015 inductee Bill Withers, who hadn’t performed for years. (Photographs by Michael Zorn)

Green Day’s Billie Joe Armstrong said during his acceptance speech in 2015 in Cleveland that he’s loved rock music since he took first breath.

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confidently know we can deliver on this each time.”

And the corporate community has stepped up in a big way for the ceremony, Harris said, because they “believe in its importance for the region.”

Harris said all of the tables and sponsorship opportunities sold before the inductee class was even announced.

Tickets for the general public — prices of which ranged from $90 to $500 apiece — also sold out in 30 minutes when they went on sale last month.

Demand was so great a live simulcast will take place at the museum — they typically only take place when the event is in New York — and tickets for that also sold out.

Additional support for the local ceremony comes from PNC Bank, Destination Cleveland, the city of Cleveland, the state of Ohio, J.P. Murphy Foundation, Medical Mutual of Ohio, Greater Cleveland Partnership, Downtown Cleveland Alliance, Forest City Charitable Enterprises and others. Also, last summer, Klipsch — an Indianapolis-based maker of high-tech audio equipment — announced it had renewed its threeyear partnership with the Rock Hall and would be a presenting sponsor for Cleveland’s induction ceremony.

“These are high-priced events to execute,” Harris said. “You’re delivering at a level that has to fit the highest broadcast standards for HBO. You’re also bringing in marquee artists from all points on the globe to be here.”

It’s no surprise that the Cleveland ceremonies generate a significantly different feel than those held in New York. For one, the ceremony gives the

Rock Hall a chance to show off its renovated digs. The Rock Hall’s Power of Rock Experience in its new Connor theater, which debuted last summer, should get some significant traffic. Also, the museum is in the midst of building out its new “Hall of Fame Experience” exhibit on its third floor, which will open the weekend before the April 14 ceremony, and will showcase the 250-plus acts that have been inducted to the Rock Hall.

The ceremonies — and,the city — also boast a different vibe. That’ll happen, of course, when you drop some rock stars in a Rust Belt city. For example, when the Red Hot Chili Peppers were inducted in 2012, the band held a private party at the Corner Alley Bar on Euclid Avenue for friends and family. Musicians are regularly spotted around town at clubs and restaurants — or the Friday night gala — in the run-up to the ceremonies. It’s decidedly un-Cleveland.

“There’s a different feeling in the air,” Harris said. “Artists come in and spend a couple of days in the city and spend time with each other. In a bigger city, they do their piece and go back to where they’re comfortable.

Last time, it was a chance for Paul McCartney to hang out with Ringo.

From the artist side and the production side, there’s a different feel.”

But is it difficult to bring the stars to Cleveland?

“The amazing thing is, once they’re here, they get it and really love it,” Harris said. “A few artists have expressed dismay that it might be in Cleveland, but once they’re a part of it, they’re glad it was here.”

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MEETING & EVENT PLANNER Adviser: Matt Radicelli

Lessons on performance-based pay from an events pro Most companies, in my opinion, overpay for underperformance. It’s not because their people aren’t talented; it’s because those employees under-deliver.

Let me clarify that I’m not talking about situations where employees are overworked. I’m talking about the issue faced when employers fail to hire the right talent, develop appropriate metrics to measure performance and reward employees accordingly.

When tackling this challenge, CEOs are confronted by two questions: Should we just pay really well and accept nothing less than superior performance? Or should we pay competitively and reward deliverables along the way based on operating performance?

Like any business, the sheer truth is we have to buy low and sell high.

We have to negotiate the best possible rates, for the best possible talent.

But I believe that good employees should never have to ask for a raise.

So how do we track performance and reward employees appropriately?

I do not have an MBA. In my 19 years as a CEO and through countless shared experiences with other thought leaders, I have learned the hard way that variable compensation and operational performance programs could be a turn off for the wrong type of person and a wonderful motivator for another. Personally, I view it as opportunity rather than something that’s framed up as a penalty; some could perceive this as jumping through a hoop to get their paycheck. If done the right way, it becomes about growth and betterment.

I have people on my team that are not motivated by money or deliverables at all. They are motivated by performance, opportunity and the excitement of creating something from nothing. For those employees, a base pay that is competitive may suffice. They will come to the office, work hard no matter what, and be happy.

So, do you offer variable pay to this employee? Consider the following: Perhaps there are a few additional (optional or critical) tasks within a role that, if completed, would make everyone’s life so much easier. If that employee can deliver on those, without being babysat, then you can apply added financial incentive if they accomplish these bonus items.

But, because of the nature of the tasks, if they stall out and cannot complete them, the company will not go under, and the employee will not feel devalued. This allows for paying what the market suggests, but also giving team members a way to excel.

Conversely, some are very driven to hit goals based on incentives. We know that sales, for instance, is a numbers game. Some degree of variable compensation is a given.

For people that are motivated by dollars, we seem to think right now that variable pay of around 10%-20% seems motivational for them. But not all sales people are commission-minded closers, so in my experience, a blended approach is most common.

Now you have to be very care-

Matt Radicelli is the founder and CEO of Rock The House Entertainment Group.

ful. Tracking operating performance can get very complicated.

If every single person on your team has an operating performance with 17 different metrics, somebody has to track that. That

is a daunting task. It comes down to determining two things: the measurement of the information itself and the frequency of sampling.

If you’ve had a chance to read “Traction� by Gino Wickman, the concept of the Entrepreneurial Operating System suggests that there are many different ways to track performance. Personally, I want to keep it simple. I want to be able to look at it and say “done� or “not done.� So, if I can’t glance at the info or the data and gather whether it’s “done/not done,� I haven’t developed the prop-

er system to measure operating performance.

It can be as simple as one-onone meetings with our direct reports where we discuss whether goals were achieved. Other options that are easier and more automated could be using a simple checklist application like Wunderlist or a shared Google spreadsheet where data is collected. Another great resource (go buy it now) is the book “The Motivation Toolkit: How to Align Your Employees’ Interests with Your Own�

by David Kreps. It’s full of con-

)PTQJUBMJUZ!QSPGPPUCBMMIPG DPN ]

cepts, the pros and cons of each, and non-biased case studies to support them all.

More and more, especially with the millennial generation, variable pay options are a checkbox on the “Do You Have a Great Job?� list.

From what I have seen, productivity and quality of work increase when pay is variable. And operating performance numbers are mostly born of the idea that everybody wants to grow. Everyone wants to know that they have an opportunity for growth. It’s not just about the job.

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MEETING & EVENT PLANNER

Local events supply biz has national reach

By DOUGLAS J. GUTH clbfreelancer@crain.com

Event Source — a Valley Viewbased rental supply company for the events industry — has 1 million individual items in its inventory, covering 3,500 unique categories including more than 400 luxury linen products. The business’s footprint has grown alongside its ever-deepening stock, necessitating the opening of additional showrooms as well as expansion of its local headquarters.

2018 kicked off with the launch of a new design center in Pittsburgh, joining three similar facilities in Cleveland, Columbus and Detroit.

Like other Event Source showrooms, the Pittsburgh location features seasonal displays of tabletop items, linens, dance floors samples, lounge furniture and other event-friendly products. Vice president of sales and marketing Deborah Halkovics said the facility is a creative hub for clients to plan events, discuss industry trends, and experiment with the endless combinations of rental items the company has on offer.

“Clients can pull linen off the wall, or take out some flatware and see how it looks,” Halkovics said. “The design center gives them an opportunity to plan and visualize their entire event.”

Event Source has about 25,000 clients in its database, about 90% of them in the corporate space. Fulfilling burgeoning customer needs required reaching beyond the regional market to Florida, where the company last summer acquired two Panache Party Rental locations in Pompano Beach and West Palm Beach.

Company officials said the July 2017 acquisition added depth to inventory

Event Source’s new Pittsburgh design center — much like its Cleveland showroom — features seasonal displays of tabletop items. (Contributed photo)

and created a seasonal symmetry where resources are evenly dispersed depending on the time of year.

“For Event Source, our busiest season is the summer, while winter is our slow season,” Halkovics said. “In Florida it’s the opposite, so it gives us a chance to leverage inventory and people from Cleveland to Florida for big events. That kind of efficiency is exciting for (the Bibbo family.)”

Event Source also is in the home stretch of a headquarters expansion set to double the size of its Valley View facility to 150,000 square feet when it opens in April. The $5 million investment will allow for additional warehouse and equipment space, along with new administrative offices and a dedicated “recruitment opportunity center” for job candidates

to fill out applications.

Founded in 1979 as a tool and construction equipment supplier, the company is owned and operated by two generations of the Bibbo family, with brothers John, Bryan and Kevin Bibbo serving as executive leadership today. The business model evolved into event rentals in the early 1990s — reflecting an industry shift at the time — and was rebranded permanently in 1997.

Event Source supported 2,500 active clients in 2017, among them the Cleveland Clinic. Over the years, the company has partnered with the hospital system on staff luncheons, fundraising campaign launches, groundbreakings, and a retirement party for former Clinic president and CEO Dr. Toby Cosgrove.

Laura Foglyano, director of event marketing at the Clinic, said that in addition to providing rentals, Event Source carries a variety of inventory unmatched in the industry.

“They have the best selection of options,” said Foglyano. “Where another vendor might offer only five or six different options for a plate, Event Source has over 30. The same applies to almost any of the products they offer.”

Clinic officials are happy to support a local business in a city currently attracting a variety of sizable sports, entertainment and political events.

“Event Source has been able to scale their business and continue to provide the same level of quality and service,” Foglyano said. “We don’t need to look to a national vendor for our rental

needs — the company is able to provide almost everything we need.”

While having so many devoted customers is an undeniable positive, Event Source has been challenged in hiring the right people to meet that high level of loyalty.

“For us, it’s more important to find that mentality of customer service versus having an exact set of skills,” Halkovics said. “We can teach those skills, but we’re always looking for a friendly, positive, customer-service driven person.”

Event Source expanded its HR recruitment staff to brainstorm hiring ideas. Although job fairs and online employment sites are dependable talent sources, referrals from existing employees have unearthed the best candidates.

Constant communication is key in keeping these top workers, Halkovics said. Event Source uses an engagement app called MySource to keep hires abreast of company news and benefits information, as well as lighter fare such as employee birthdays or work anniversaries.

“When we acquired Panache, it was important for leadership to tell employees how it was going and when we were entering the next phase of development,” Halkovics said. “It’s a great way to reach everyone quickly.”

Company expansion has been measure of success not only for Event Source, but also for an event planning ecosystem that admirably tackled the Republican National Convention and other big-ticket to-dos.

“The event community demonstrated that we have it going on here in Cleveland,” Halkovics said. “When we’re all able to deliver on what a client is looking for, that’s going to bring more events here.”

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MEETING & EVENT PLANNER

‘Crowdshaping’ could transform events

By DOUGLAS J. GUTH clbfreelancer@crain.com

Detailed feedback on an event is something sought after by meeting planners to provide direction and improvement for future events. However, what if you could get critical information in real time, and use that data to modify a conference or meeting right there and then?

Enter crowdshaping, a technology that allows organizations to mold events spontaneously per attendee preferences. Harnessing application software, any guest with a smartphone or smartwatch can leave comments about a venue’s temperature or the length of a presenter’s Q&A session, catching the eye of an event manager able to act immediately upon this feedback.

According to proponents, crowdshaping is a management trend that will transform the event planning industry. Locally, the technology is being harnessed by several major companies and marketing groups, while others in the industry question exactly how real time data should be used.

Hyland Software gets live commentary from participants at the various conferences it hosts throughout the year, said Amy Maxey, team lead of strategic events. The Westlake-based company uses a third-party event app solution called CrowdCompass to connect with guests and foster the type of engagement it wasn’t receiving through post-event surveys.

“It was important for us to get input at the event rather than just putting out a survey we wouldn’t be able to act upon until the following year,” Maxey said.

Hyland has been using crowdshaping technology for three years in

coordinating regional events of 100 to 200 guests or smaller one-day training sessions for its OnBase platform. Crowdshaping is a key component of CommunityLIVE, an annual flagship conference that brings together 2,000 end users of Hyland’s various software products.

At the five-day summit, individuals who check in via the CrowdCompass app receive brief questionnaires following every event or session they attend. For instance, a guest unhappy with the amount of time a speaker gives for a question-and-answer session simply inputs their criticism into the app, with that conversation saved for easy retrieval by an event manager.

“We share immediate feedback with presenters,” Maxey said. “There’s repeated sessions, so presenters can modify follow-up sessions or tweak them as they go.”

Turning mobile devices into networking tools results in quality of life improvements as well. Guests with food allergies or other dietary restrictions are catered to quickly, and seemingly small requests made inapp often resonate with event-goers in a big way.

“We didn’t have ketchup on the buffet line for people who wanted it on their eggs,” Maxey said. “It sounds trivial, but that’s the kind of thing people remember. They want their voices heard, and are appreciative of any kind of special attention.”

Content Marketing Institute has been fashioning “epic experiences” with crowdshaping technology since marketing director Cathy McPhillips came on board in 2013. CMI takes direct feedback from a third-party networking app, surveying users to craft sessions and speakers for upcoming events. The organization further fine-

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“We share immediate feedback with presenters. (They) can modify follow-up sessions or tweak them as they go.”

Amy Maxey, Hyland Software team leader for strategic events

tunes future events during weekly #CMWorld Twitter chats, gauging a speaker’s popularity in case a talk needs more presentation space.

“We make a point of bringing in speakers based on (attendee) recommendations,” McPhillips said. “If we have a waiting list of 75 people, we’ll get a bigger room so people won’t miss out on a session.”

At an event, CMI provides discussion boards within the app for participants to ask questions or talk to on-site staff. A CMI team member watches the app for notices about chilly meeting rooms or missing vegan lunches, ensuring the situation is handled before it results in a dissatisfied guest.

“This allows us to again make on the

fly changes to programming,” McPhillips said. “We can coordinate meet-ups with attendees, sponsors and speakers, and see any rumblings from attendees who aren’t having an epic experience.”

During CMI’s Content Marketing World event in September, about 80% of 3,600 attendees downloaded the mobile app. Participants earned points for each comment or action they made in-app, with the top three users winning prizes at the end of the week. In addition, CMI used the app to organize an outing at the Corner Alley bar, drawing 30 people who were notified about the meet-up on their phones.

For all its benefits, crowdshaping technology is not an end-all replacement for face-to-face interaction, said Maxey of Hyland. At a recent event in Las Vegas, a guest with a disability needed assistance in getting around a venue. Staffers talked with the man about his concerns, making detailed arrangements that would have been difficult to arrange online.

“We worked with the man to ease the amount of walking he had to do,” Maxey said. “That type of customer service is better in person or with a phone call.”

Jamie Belkin, president of Jamie Belkin Events, said too much information can sometimes be a negative from a meeting manager’s point of view.

“Do you want 1,000 people to have access to something where they’re all telling you it’s cold?” Belkin said.

“For things like temperature or music, I’m not sure there’s a conference so loosely planned where you could make those transitions quickly.”

Considering the tightly scheduled nature of most corporate events, a crowdshaping app would be best suited for directing guests to points of interest during down times. For example, guiding attendees to an exhibit space where they can meet presenters not currently in session.

“Instead of getting feedback, we’d use the app to direct people where we want them to go,” Belkin said.

“That would be very useful.”

While crowdshaping has its limits, the ability to change an event’s variables in a timely manner can create long-term relationships with clients, Maxey said.

“Happy customers are repeat customers,” she said. “People who have a meaningful experience at a conference will come back next year and bring their colleagues with them.”

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CRAIN’S CLEVELAND BUSINESS

MEETING & EVENT PLANNER PREMIER CENTRE

FOR LEASE

1392 High Street Wadsworth, Ohio 44281

Catering vet stays fresh with major expansion

Chef William Rini plans to transform the former Blue Heron Country Club in Medina into a banquet and conference center. (Contributed photos)

By JOE CREA Q

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Where it comes to catered affairs, there’s still plenty of room for the usual buffet line, cash bar and dessert table. But ask William Rini, owner and certified chef for A Taste of Excellence Catering based in Strongsville, and he’ll smile and nod — then turn the whole equation on its ear.

“Of course, you do your very best to give the customer what he or she wants,” said the courtly Florida International University hospitality management graduate, who joined the family business in 1995 and today boasts an annual sales volume of around $10 million.

“But keep in mind,” he added, “customers today want concepts that are fresh and unusual.”

Which is why Rini works with event venues as diverse as the Cleveland City Hall Rotunda, the Old Court House and a host of other settings — and why he has recently acquired the former Blue Heron Country Club in Medina, which his organization is transforming into the Blue Heron Banquet and Conference Center.

Rini says he acquired a parcel of the former country club, at 3227 Blue Heron Trace in Montville Township, in 2016. The parcel includes two buildings, an 8,000-square-foot car barn and property.

When it opens in time for Independence Day holiday, Rini explains that the center will provide an event venue that will accommodate roughly 400 guests.

“On the bottom level, there will be beer hall where you can have a few pints and burger,” Rini said. “On the second floor, there’s a more upscale restaurant with live music, where you’ll be able to see the sunset and sit out on a patio.

Then, on the third floor, there’s a roughly 180-guest ballroom.

The complex will also include a full-scale brewery, plus a 400- to 500-seat amphitheater, and multiple patios overlooking a nature preserve.

As he moves toward his latest venture’s debut, Rini fielded questions about the changing face of the industry he loves.

Consider the Foundry for your next corporate retreat!

To make the Foundry the site of your next business meeting, email Michael Ferry, Director of Corporate & Community Partnerships, at mferry@clevelandfoundry.org, or call him at: 440.862.0247.

Visit our website: clevelandfoundry.org

Citing a more educated consumer, A Taste of Excellence’s William Rini said he works with local ingredients whenever possible.

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My guess is that most of us who know of Taste of Excellence — either through your television commercials and word-of-mouth — have the perception that you’re chiefly a moderately successful full-service wedding planner. And my guess is, we’re way off base.

(Laughter). Well, mid-season we range from nine to 16 full-service events on a given Saturday night. We’re pretty busy. Today our annual sales volume is right around $10 million. We maintain steady growth, and we’ve grown every year: 11% to 16% over the last 10 years, and we average double-digit growth. We’re very diversified as a company. We have a special events division; a contract dining division, with food service, such as a cafeteria at Walsh Jesuit High School, and another in the basement of Cleveland City Hall, conference centers at Case Western Reserve University, Tri-C Corporate Colleges East and West — with a full crew of on-site chefs, managers and support staff. That’s the area we’re looking to grow as a company. A wedding is one-and-done. These others are long-term agreements with businesses and institutions in

cultural and business climates where they need food service day-in, day out. We brought the specialty flair from Taste of Excellence and implemented our same level of quality in a cafeteria setting.

Gone are the days, it seems, when most hosts were comfortable with offering a round of drinks, some appetizers and a threecourse meal. Has the level of expectations changed very much?

Pretty dramatically. People want more offerings. Whether its a corporate meeting or a reception like a wedding, they don’t want four square walls and a “white-box” setting, like you so often find in a hotel.

Take (corporations like) Google and other tech companies and all they provide for their employees, from high-end food service to game areas.

They’ve innovated the workplace to make it comfortable for their employees. It’s the old saying: all work and no play. And that’s changed the face of how people want to entertain or host an event.

We are more specialty driven. People are much more educated about food

and beverage these days. They know their wines, fine food and look for more locally produced products — so we buy Ohio Proud beef, use Ohio City Pasta, Lucky Penny Creamery products, Mitchell’s Ice Cream. Whatever we can source locally, we use it.

So along those lines, what are some of the trends you see taking shape in that catering industry locally?

What I see is, the clients of today are looking for more of a niche venue — settings that are more unique and distinctive, something a bit different outside of your usual four walls and banquet space. Many want something that has outdoor facilities, places where, during breaks, the client can maybe enjoy some nature and clear their mind a little bit. On the corporate size, they want a space where they can have team-building exercises and activities for their employees — rather than being stuck in a hotel room. After a few hours, that can wear on you.

Many organizers want to pick a place like Mapleside Farms or our Blue Heron Brewery where you can meet, have lunch, and go spend some time outside.

And these days, a lot of trends are these refurbishes churches and theaters. We just signed a contract with the old LaSalle Theater —arts and media center, an old movie theater built in 1927 in the Collinwood neighborhood. It’s one of our newest venues, and it’s gorgeous.

(Developers) have put several million dollars in and turned it in a LEED-certified building and events center. It’s the kind of setting where guests or employees are fascinated by the old beauty of the place.

Of course, all that comes at a price, no?

The cost of food and beverage has gone up over the past several years.

The national average for an event is about $77 for F&B — that’s without plates and other service ware, and doesn’t include the actual cost of the venue. But we have venues that rent for $1,500 for a Saturday night, and some that rent $10,000 — that’s just to get into the door.

Something like the Rotunda at Cleveland City Hall? It’s a breathtaking space. But to have that unique experience and set themselves apart from other brides or businesses,

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CRAIN’S CLEVELAND BUSINESS

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M A R C H 5 - 11, 2 018

|

PA G E 17

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People are willing to pay the money if you can deliver on the quality. Our clientele certainly appreciate that.

And of course it’s our job to tailor an event to the host’s specifications and budget. But when we’re dealing with local vendors we can often save our customers money.

How much do customer expectations differ between those who’re booking a sophisticated event and, say, students eating in a dining hall you service?

We really have to bring our “A� game, because we really count on that

repeat business. If they have a bad experience and we don’t show some great, made-from-scratch dishes, they may not come back. So we have to provide a high-quality experience.

The kids at Walsh are educated. We deliver fresh sushi twice a week and have cook-to-order “action� stations.

I tell my chefs and managers: don’t think of it at a cafeteria; we’re catering their event every single day.

With the Bobby Flays and Michael Symons out there, people are really educated in food. They know good quality and bad quality — and you have to deliver, or you lose.

Joe Crea writes about the business of food for Crain’s Cleveland Business.

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PA G E 18

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M A R C H 5 - 11, 2 018 |

CRAIN’S CLEVELAND BUSINESS

THE LIST

Credit Unions

Ranked by Dec. 31, 2017 Assets LOANS (MILLIONS) % DEC. 31, 2017 DEC. 31, 2016 CHANGE DEC. 31, 2017

SHARES & DEPOSITS (MILLIONS) DEC. 31, 2017

NUMBER OF MEMBERS WHO CAN JOIN? (1)

ASSETS (MILLIONS)

THIS YEAR CREDIT UNION

TOP EXECUTIVE

1

Seven Seventeen Credit Union 3181 Larchmont Ave. NE, Warren (330) 372-8100/www.sscu.net

$976.0

$916.9

6.4%

$813.1

$810.5

79,661

All who live, work, worship or attend school in Trumbull, Mahoning, Columbiana, Portage, Summit or Stark counties

Gary Soukenik president, CEO

2

Century Federal Credit Union (2) 1240 E. 9th St., Suite 719, Cleveland (216) 535-3200/www.cenfedcu.org

$385.9

$375.3

2.8%

$259.6

$335.9

26,116

Employees of federal agencies and select Northeast Ohio organizations (any organization may join)

Sharon L. Churchill CEO

3

Firefighters Community Credit Union 4664 E. 71 St., Cuyahoga Heights (216) 621-4644/www.ffcommunity.com

$248.7

$242.5

2.6%

$181.5

$221.2

32,890

All who live, work, worship or attend school in Cuyahoga, Geauga, Lake, Lorain, Medina, Portage and Summit counties

Ben Laurendeau president, CEO

4

Cardinal Credit Union 8500 Westport Drive, Mentor (440) 266-2200/www.cardinalcu.com

$244.1

$243.1

0.4%

$185.8

$212.5

33,483

All who live, work, worship or attend school in Cuyahoga, Lake, Geauga, Ashtabula, Portage, Summit, Mahoning, Trumbull and Columbiana counties

Christine Blake president, CEO

5

CSE Federal Credit Union 1380 Market Ave. N., Canton (330) 452-9801/www.csefcu.com

$233.7

$225.9

3.5%

$158.7

$208.2

42,367

All who live, work, worship or attend school in Stark County

R. Stanley Barnes president, CEO

GenFed Financial Credit Union 2492 Wedgewood Drive, Suite B, Akron (330) 784-5451/www.genfed.com

$230.5

$230.9

-0.2%

$152.6

$191.9

24,410

All who live, work, worship, attend school or volunteer in Lorain, Summit, Erie, Medina and (excluding volunteers) Cuyahoga and Portage counties; employees of various companies

Joyce R. Jones president, CEO

7

VacationLand Federal Credit Union 2911 Hayes Ave., Sandusky (419) 625-9025/www.vlfcu.org

$215.2

$203.0

6.0%

$146.5

$170.2

18,847

All who live, work, worship or attend school in Erie County and employees of certain school districts in Huron County

Bryan P. Myers CEO

8

Firestone Federal Credit Union 31 Hanna Parkway, Akron (234) 352-1100/www.fofcu.com

$207.4

$205.1

1.2%

$30.7

$171.5

10,051

Bridgestone/Firestone employees

Wayne A. Chapman president, CEO

9

Lormet Community Federal Credit Union (2) 2051 Cooper Foster Park Road, Amherst (440) 960-6600/www.lormet.com

$181.3

$153.4

18.1%

$121.7

$161.1

21,759

All who live, work, worship, or attend school in Lorain County

Daniel R. Cwalina president, CEO

10

Ohio Catholic Federal Credit Union 13623 Rockside Road, Garfield Heights (888) 696-4462/www.ohiocatholicfcu.com

$166.5

$160.4

3.8%

$119.1

$140.9

13,819

Anyone connected with the Catholic Diocese in Ohio; Diocesan parishes, schools or organizations; or the Ohio Catholic Foundation

Todd R. Turner CEO

11

BFG Federal Credit Union 445 S. Main St., Akron (330) 374-2990/www.bfgfcu.org

$150.2

$151.2

-0.6%

$88.8

$136.9

26,435

All who live, work, worship, volunteer or attend school in Summit County

Michael J. Owens president, CEO

12

Best Reward Credit Union (2) 5681 Smith Road, Brook Park (216) 367-8000/www.bestrewardcu.coop

$147.0

$149.5

-1.6%

$33.3

$99.0

13,215

All who live, work, worship or attend school in Cuyahoga, Lake, Geauga, Medina, Summit, Lorain and Portage counties

John J. Shirilla president, CEO

13

PSE Credit Union Inc. 5225 Regency Drive, Parma (440) 843-8300/www.psecreditunion.org

$131.3

$128.0

2.6%

$70.0

$119.4

19,078

All who live, work, worship or attend school in Cuyahoga or Medina counties

Joseph C. Anderson president, CEO

14

Associated School Employees Credit Union 1690 S. Canfield Niles Road, Youngstown (330) 792-4000/www.asecu.com

$131.2

$129.2

1.5%

$84.8

$116.0

13,564

All who live, work, worship or attend school in Mahoning, Trumbull or Columbiana counties

Michael Kurish president, CEO

15

Ohio Educational Credit Union 4141 Rockside Road, Suite 400, Seven Hills (216) 621-6296/www.ohecu.com

$128.7

$128.0

0.6%

$98.4

$116.5

17,599

Employees, students and alumni of any school or college in Ohio

Jerome R. Valco CEO

16

Towpath Credit Union 2969 Smith Road, Akron (330) 664-4700/www.towpathcu.com

$127.0

$122.0

4.1%

$75.5

$111.0

22,000

All who live, work, worship or attend school in Akron, Fairlawn, Cuyahoga Falls, Bath, Copley township or Richfield township

Rose Bartolomucci president, CEO

17

Stark Federal Credit Union (2) 4100 Dressler Road NW, Canton (330) 493-8325/www.starkcu.org

$124.5

$121.2

2.8%

$59.0

$110.6

14,098

All who live, work, worship or attend school in Stark or Carroll counties

Nino J. Gemma president, CEO

18

Lakeview Federal Credit Union 2909 State Road, Ashtabula (440) 998-2707 /www.lakeviewfcu.com

$96.7

$95.8

0.9%

$49.3

$84.8

8,545

All who live, work or worship in Ashtabula County

Sherry S. Cornell president, CEO

19

Cleveland Selfreliance Federal Credit Union 6108 State Road, Parma (440) 884-9111/www.clevelandselfreliance.com

$88.7

$89.1

-0.5%

$24.9

$73.0

3,582

Members of the Ukrainian American community

Orest Liscynesky treasurer, manager

20

Golden Circle Credit Union 4118 Lincolnway E., Massillon (330) 479-3130/http://goldencirclecu.com

$87.6

$88.4

-0.9%

$54.7

$72.9

10,000

All who live, work, attend school or worship in Stark County

Jeffrey J. McClain CEO

21

Community One Credit Union of Ohio (2) 6583 Frank Ave. NW, North Canton (330) 305-3050/www.c1cu.com

$83.0

$73.3

13.3%

$38.0

$76.0

9,359

All who live, work, worship or attend school in Stark County

Evelyn L. Canterbury president, CEO

22

Medina County Federal Credit Union (2) 1353 Reimer Road, Wadsworth (330) 334-1023/www.medfed.com

$77.8

$73.1

6.4%

$33.7

$69.2

8,961

All who live, work, worship or educate in Medina County

Pete Grimm president

23

Community First (2) 2043 E. Prospect Road, Ashtabula (440) 997-5919/http://cfcua.com

$75.8

$75.2

0.9%

$31.7

$64.2

5,603

All who live, work, worship or attend school in Ashtabula County

Mark DeGeorge CEO

24

Buckeye State Credit Union 197 E. Thornton St., Akron (330) 253-9197/www.buckeyecu.org

$75.0

$83.8

-10.5%

$62.3

$68.0

15,541

All who live, work, attend school, volunteer or worship in Shaker Heights and Summit, Stark and Lake counties

Jennifer R. Borowy president, CEO

25

Taleris Credit Union Inc. 1250 E. Granger Road, Brooklyn Heights (216) 739-2300/www.taleriscu.org

$74.1

$71.9

3.1%

$54.4

$54.7

9,529

Individuals in Lake, Geauga, Summit, Portage, Cuyahoga, Lorain, Stark and Medina counties

Robin D. Thomas president, CEO

26

Unity Catholic Federal Credit Union 5839 Ridge Road, Parma (440) 886-2558/www.unitycatholiccu.org

$71.1

$70.3

1.2%

$46.8

$63.8

10,324

Parishioners, families, students, employees and organizations in the Catholic Diocese of Cleveland and Eparchy of Parma

Brian M. McCue CEO

6

RESEARCHED BY CHUCK SODER (CSODER@CRAIN.COM)

Want the full Excel version of this list Ñ and every Crain's list? Become a Data Member: CrainsCleveland.com/data Information is supplied by the companies unless footnoted. The full digital list includes 37 credit unions and additional executives. Send feedback to Chuck Soder: csoder@crain.com.

(1) Family members of individuals in these groups are often eligible to join. (2) Source: www.ncua.gov and company website

CRAIN’S CLEVELAND BUSINESS

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GLOBAL

CONTINUED FROM PAGE 1

“HIMSS is excited to renew our partnership with the Global Center,” said Carla Smith, executive vice president of HIMSS in a news release. “Our HIMSS Innovation and Conference Center will further leverage the Global Center platform to engage our members in joint programming and in the development of health care innovation.”

John Paganini, who worked at HIMSS for 3 1/2 years before leaving last year to work on several tech startup businesses, believes the Global Center has been a good fit for HIMSS. “Areas of its mission gets driven through the HIMSS innovation center — like interoperability, like cybersecurity, like analytics, like education,” he said. “Interesting things were established there.”

The lease renewal comes less than five months after the Oct. 16 announcement that BioEnterprise Corp., the nonprofit health care and bioscience business accelerator, was moving its headquarters to the Global Center and taking over the running of the health sciences aspects of the building, including programming and tenant relations.

Since then, the Cleveland Clinic and JumpStart Inc., a Cleveland nonprofit that boosts startup businesses, have announced they will financially support a Global Center base for Plug and Play, a business accelerator that connects startup business with investors. The Silicon Valley firm will operate a sort-of short-term, post-graduate course in growing a business concept for selected biotech and digital health startups.

The first group of startups arrived in

The Global Center for Innovation, seen from Mall B. (David Kordalski)

Cleveland last week to compete for slots in Plug and Play’s first Cleveland class. The winning companies will work from space in the Global Center and get guidance from JumpStart, the Clinic and others as they develop their ideas and seek investors.

“We’re transitioning the Global Center from a medical mart, often described as a showcase, into an active innovation center,” said Aram Nerpouni, president and CEO of BioEnterprise. “We are creating an agenda in the building to drive interaction and collaboration, and the building itself is reformatting essentially to be a place where people are working from every day, rather than being just a destination for events.”

The BioEnterprise takeover is the next step in the building’s evolution.

Baiju Shah, CEO of BioMotiv LLC, a Shaker Heights firm that supports breakthrough discoveries in medicines, and the president and CEO of BioEnterprise from 2002 to 2012, recalls a desire locally to find a way to

put Cleveland on the international health care map.

At its inception in the mid-2000s it was to be a collection of showrooms for sellers of medical and health care equipment. However, even before its October 2013, that concept was already being rethought as leasing wasn’t living up to expectations, Shah said.

“The original concept of individuals coming to shop at the mart as they were thinking about outfitting a hospital never resonated in the marketplace,” he said. “We knew that early on.”

At the time, a new management team, led by former McKinsey & Co. consultant James Bennett, had the idea to scrap the “medical mart” name. Instead, the plan was to create a place where companies in the health care sector, either individually or in collaboration with other companies, would create environments where hospital administrators, physicians and other health care providers could see products in a working environment.

That’s when the building became the Global Center. But that idea, too, foundered.

Though a number of companies signed on to take space in the building, it has been used primarily as a place for intermittent sales and educational meetings. It has worked well for HIMSS, which is a nonprofit that champions the development of best practices in health information and technology. It has not worked as well for other tenants, though many remain, including Cardinal Health Inc., GE Healthcare and Steris Corp. Local organizations such as Case Western Reserve University, University Hospitals of Cleveland, Cleveland Clinic and JumpStart also have space in the building.

BioEnterprise moved its headquarters staff of 25 people from University Circle into the Global Center shortly after the beginning of the year. That move, in some ways, has been a long time coming, Shah said.

“BioEnterprise has always been at the table (in development of the Global Center), even back in my days, but was always trying to work through influence rather than having direct responsibility,” he said. “I think it’s much easier to drive the vision by having direct responsibility.”

Brad Whitehead, a member of the BioEnterprise board and president of the development nonprofit Fund for Our Economic Future, believes getting BioEnterprise, the Clinic, JumpStart and Plug and Play involved are moves in the right direction for the Global Center.

“I think it’s the shot in the arm the building needs,” he said. “Getting the business and entrepreneurial leaders taking charge of the space and making it into the crossroads is the best shot for that building.”

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Because of the need for a public subsidy to build and run the building that may or may not be offset by spending by convention goers, the exact value of a convention center to a community is hard to gauge.

Edward Glaeser, a Harvard University professor who specializes in urban economics, is one of those who is unconvinced of the value.

“Too many officials in troubled cities wrongly imagine that they can lead their city back to its former glories with some massive construction project — a new stadium or light rail system, a convention center, or a housing project,” he wrote in “Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier, and Happier,” his 2011 book. “With very few exceptions, no public policy can stem the tidal forces of urban change. We mustn’t ignore the needs of the poor people who live in the Rust Belt, but public policy should help poor people, not poor places.”

Gilbert, and others, argue that a convention center can provide economic benefits to a community, bringing new visitors with money to spend to town.

Of course, a convention center also attracts local attendees who are merely spending money that would be spent elsewhere in the community. And whether out-oftown visitors can attract talent and business investment is harder to gauge and Gilbert said his organization is only beginning to study that issue.

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Sirna & Sons expands site to feed demand

By BETH THOMAS HERTZ clbfreelancer@crain.com

Fewer people are eating at home today, and Sirna & Sons, a family owned wholesale food distributor in Ravenna, knows that means practically endless outlets for its products — from restaurants and country clubs to schools and office buildings, even meal delivery kits.

As part of the company’s strategy to meet the needs of its varied customers, the three siblings who are the third generation to run the company invested $8 million to double its facilities last year to facilitate growth and launch a food processing business.

The 60,000-square-foot addition brings the company’s Ravenna facility to 110,000 square feet. The new space provides expanded product storage areas, where food is kept in 11 temperature zones to maximize each item’s freshness, as well as 13 new truck docks, bringing the company’s total to 30. The expansion also includes extra office space and a 2,500-square-foot freezer that replaces trailers previously kept on the property.

Having a built-in freezer allows Sirna & Sons to expand its offerings in frozen items, such as fresh pizza dough, breads and pastas as well as produce, said Serena Sirna-Wagner, director of human resources and accounting. The other principals are her brothers: Tom Sirna is president, and Vince Sirna is vice president and director of operations.

Their father, Joe Sirna, 93, still comes in a few days a week to check on the company he and his father

Sirna & Sons’ expansion includes new environmentally friendly office spaces. The exterior of the new office spaces is made from recycled materials, including rice husks and plastics — but no wood. (Contributed photo)

founded in Chicago in 1939. The fourth generation came on board about five years ago when Tom’s son Anthony took on a sales role.

Work on the expansion started in the fall of 2016, and the new warehouse space was available for use starting last spring.

About 6,000 square feet in the addition have been designated for a new business arm that processes foods for easy use, such as cut fruits and vegetables. Many clients are interested in buying these items because it reduces their workforce needs, Sirna-Wagner said.

“The labor pool is tough. Restaurants will tell you they have difficulty finding help,” she said.

The processing unit is being operated as a separate entity, Christine’s Cuts LLC, named after the siblings’ mother, who passed away in 2011. A separate general manager has been hired for the business, of which Sir-

na-Wagner is the majority owner, allowing it to be categorized as a woman-owned venture when bidding on contracts. It launched in April.

“We were purchasing our processed products through other suppliers, and it just made sense to us to do it ourselves because we have the products and we have the customers.

But we had to wait until we could get room to do that,” she said. “We are definitely looking to grow that market now that it’s up and running.”

In fact, Christine’s Cuts was placed at the end of the building to make future expansion on the site easy. The company recently purchased 9 acres adjacent to its property, bringing its total to 20.

The expansion is environmentally friendly, including rooftop solar panels that meet about 35% of its energy needs and conference tables made from reclaimed wood. The exterior of the new office spaces is made from

recycled materials, including rice husks and plastics — but no wood.

All lighting is LED and utilizes motion sensors to avoid wasting energy.

Sirna & Sons, which added a second center in Norwalk in 2001, distributes produce and other merchandise from 700 to 800 vendors to locations in Ohio, Pennsylvania, West Virginia, Michigan and Kentucky. In 2014, it formed a partnership with Lasita & Sons in Cincinnati, adding a third warehouse to expand service in Kentucky, Indiana and southern Ohio.

Sirna & Sons, which today employs about 200 people in Ravenna and almost 100 in Norwalk, began when Joe and his father started a grocery store in Chicago in 1939. They relocated to Cleveland and went on to found grocery stores in Garfield Heights and Cleveland. It was at these stores that the third generation learned the trade from a young age.

The family opened the Mainline

Farm Market in Aurora in 1979 and added a distribution warehouse there in 1988.

The warehouse operations moved to Ravenna in 2006. The family officially got out of the retail business when it closed the Aurora market in 2014.

Sirna & Sons’ original wholesale customers were primarily chain restaurants — TGI Friday’s was one of their early clients and remains one today — and whenever a chain opened a location, that new business helped Sirna grow. The company added hotels, school systems, food manufacturers and country clubs, and over time has won bids for prisons, sports venues and health care facilities.

Contracts with local management companies are now bringing in even more diversified clientele, such as office building cafeterias and caterers.

“Our sales team has been very creative in identifying new outlets for our business,” Tom Sirna said.

The business is bustling, with only about 12 hours of downtime all week at the Ravenna location. But the siblings are still on the lookout for more growth. They say the company’s next move might be into providing products for grocery stores — bringing it back full circle to the retail arena.

They know, however, that it would require a rethinking of some aspects of the business, such as packaging items into smaller containers tailored for consumers instead of businesses.

“We now have the capability to meet grocery store needs, and we are looking to move in that direction,” Tom Sirna said.

Walsh University weaves community into learning

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

Walsh University, a small, Catholic school tucked away on a quiet campus in North Canton, had about 2,700 students enrolled in the fall of 2017.

But the college has never let its small size stop it from dreaming big. So in the past year and a half, Walsh has announced a number of new research institutes and a civic engagement center designed to tackle problems in the community surrounding it.

“Here’s where our — to be honest — I think our faith-based mission is an advantage to us,” said Douglas Palmer, provost and vice president for academic affairs. “The Brothers of Christian Instruction who founded Walsh came here. This was a farm and an alfalfa field, and they built this college in a place that probably never should have had one, and struggled financially. Now all of a sudden, we’ve grown. We’ve developed. They weren’t afraid to start something new.

We’re similarly ... not afraid. We were driven by our faith. We’re driven with a confidence that if we apply ourselves and we work hard, we are going to make a positive difference in the community.”

Walsh announced the establishment of the James B. Renacci Forum & Center for Civic Engagement after a gift from U.S. Rep. Jim Renacci in December 2016 and named Matthew Akers executive director of the center

Some classrooms in the Marlene and Joe Toot Global Learning Center use technology such as computers or whiteboards to encourage an atmosphere that moves away from straight lecture-based learning.

(Contributed photo)

in August 2017. A month later, the university appointed directors of two interdisciplinary research institutes, which previously had been in the planning stages. Leigh Murray, professor of physical therapy, was named director of what’s now known as the Gary and Linda Byers Family Institute for Community Health, and Jennifer Vokoun, assistant professor of graphic design, was named director of the Food Design Institute, which will address issues like food insecurity and hunger.

The institutes and the center are now located in the university’s new Marlene and Joe Toot Global Learn-

ing Center.

The approximately 44,000-squarefoot center cost about $11.4 million, director of university relations Andrea McCaffrey said in an email.

Construction on it began in October 2016, and the building was open for classes in January this year.

The goal was for the building to be interdisciplinary, Palmer said, and no departments are housed within it.

The classrooms are filled with technology or whiteboards, designed to discourage lecture-based classes and encourage more interactive ones. It’s important for students to develop skills in particular disciplines, Palm-

er said, but also skills that apply across disciplines.

“We’re trying to develop students who are going to be effective in a 21st-century economy,” Palmer said.

“We’re trying to create robot-proof students.”

The institutes and center will help Walsh educate students in any major for the modern economy, while also holding true to its mission of training students to be leaders in service, Palmer said.

Palmer said it was a book, “The Smartest Places on Earth: Why Rustbelts Are the Emerging Hotspots of Global Innovation,” that helped move the idea of the institutes forward. The book described places where economies that were formerly dependent on manufacturing are successfully transitioning to knowledge economies, and the role universities play in that change. Palmer said the Walsh community began to discuss what that could mean for it in Stark County, which led to the idea of the institutes and center focused on the quality of life in the surrounding community.

For example, initial projects for the Food Design Institute and the Institute for Community Development — the newest institut still in the planning stages — will take place in Massillon and North Canton, respectively.

“We’re doing that for two reasons,” Palmer said. “One is I think the university can be a strong connector between both the private and the public sector. Secondly, we think it’s good for our students to be out there in the

community as well.”

Employers tell the university that they want people who can solve problems, Palmer said. And if graduates can tell employers that they were part of a team that solved real problems in the community, that’s going to be a benefit.

“They can engage in these issues, work side-by-side with faculty, start to build a network out in the community,” Palmer said. “And I think it’s going to be a powerful tool for them after graduation.”

These institutes “expand the scope of the classroom,” Vokoun said. They give students learning and networking opportunities, she said, but they also provide a “neutral zone” for the community to engage with the college in these conversations. Akers noted that the North Canton Chamber of Commerce and North Canton City Council will hold meetings in the Renacci center in the spring, which will give students the chance to learn more about both institutions.

Palmer said the institutes and center will be part of Walsh’s recruiting measures. And Rachel Hosler, associate dean for experiential learning, said there’s value in showing students that Stark County is “an incredible place to live and work.”

“You know, I also think that when students engage with their community, they’re more likely to stay in this community,” said Hosler, who is currently overseeing the development of the Institute for Community Development.

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AKRON

POLYMER CONTINUED FROM PAGE 1

In announcing Amis’ change in status, the university did not give a reason but said it “appreciates Eric’s passionate work on behalf of the College” and that provost Rex Ramsier will “work with the College to establish a transition plan, including leadership of the College after June 30th.”

Whoever takes over may face the same challenges as Amis, though — chief among them how to retain top talent at a struggling institution.

Faculty at the polymer college has dropped from 40 to 30 during the past few years as senior professors have been poached by other schools or retired and have not been replaced by the cash-strapped university.

In his interview before the announcement, Amis predicted more likely will leave, as some existing faculty members are eligible for retirement — and can work elsewhere after they do — while others may continue to be recruited by other schools.

“I think we’ll be smaller,” Amis said, when asked to predict what the school will look like in a year. In a January assessment of the polymer college, prepared by its faculty, a lack of competitive compensation, relative to competing intuitions, was cited as a top concern.

UA president Matt Wilson, however, said in an interview before the Amis announcement that the complaint is a university-wide one, and the polymer college is actually one of the few areas of the university getting any new money for faculty replacements this year.

The losses seem likely to continue,

The Goodyear Polymer Center houses both the Department of Polymer Science and the Institute of Polymer Science. (Shane Wynn for AkronStock)

though. Becker didn’t say whether he intends to stay and hinted that he is seriously considering leaving.

“I’ve had a lot of opportunities to leave in the last five years … I’ve Amis had five or six interviews this year, and I take them a little more seriously now,” Becker said.

But he predicted there will be more departures.

“I can’t count on one hand the number of people I know who have had interviews recently,” Becker said.

Those who have already left include big names in the field of polymers, such as Alamgir Karim, former associate dean of research and the university’s Goodyear chair, who left to go to the University of Houston in September. Karim, who is still listed on the polymer college’s website as an adjunct professor, was followed in

October by George Newkome, former head of the university’s graduate school and a leading scientist and faculty member who retired. Before them, William Landis retired early from the school as a tenured professor and left an endowed chair when he was denied permission to take a year’s sabbatical to study and work at the University of California. In the summer of 2016, Polymer Engineering Department co-founder Mukerrem Cakmak left to become a professor at Purdue University.

Such losses hurt, Becker said, because they represent the cream of the crop in polymer science. The faculty members, or more accurately their work and research, can’t be easily or quickly replaced, Becker said.

“It takes four or five years to build an ecosystem around (a new researcher). When you lose someone like Newkome or Landis, even though they were at the end of their careers … it will take 10 years to replace what they built,” he said.

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To nearly no one’s surprise, the root of the matter is money. Wilson said that he’s unable to fund new hires at the polymer college the way he’d like but said the reason is plain to see.

“We used to have 30,000 students.

Today, I have 22,000,” he said to sum up the situation.

He also said he already is giving the polymer college more than other areas of the university.

The college’s needs come not only at a time when the university has no money to spare, the needs are also expensive to meet. Hiring for the polymer college is not like hiring a new English professor or administrator. The college’s new hires are leading researchers and each requires a lab that comes with startup costs that can easily surpass $500,000 and sometimes $1 million, both Wilson and Amis said.

For example, both Amis and Newkome said Karim told them that the University of Houston put up more than $2 million for his startup there. Karim could not be reached for comment.

Some, including Becker, want UA to increase funding for the polymer college — which they view as the university’s core competency — even if that means starving other parts of UA. If others also leave as predicted, it won’t be good for the polymer college, the university, the city of Akron or for an entire international industry.

In Ohio, polymers might just be the state’s single largest industrial sector, according to PolymerOhio’s Fawcett.

“There’s been some consolidation, but we still count around 2,000 companies in the state,” he said.

Companies around the state turn to the UA’s polymer program not only for graduates, but businesses also take advantage of special pilot pro-

grams at the school, giving Ohio companies access to special equipment and expertise they would not otherwise have, Fawcett said.

He also said he’s supplying information to economic development entities, such as JobsOhio, which use both the strength of Ohio’s polymer industry and UA’s polymer college to attract new companies to the state.

Fairlawn-based A. Schulman’s chief operating officer, Gary Miller, echoed Fawcett’s endorsement of the school’s importance and went a step further. It’s not just area R&D departments that are filled with graduates from the college, but many end up in the C-suites of area companies later in their careers as well.

“I think it’s more powerful and more important than maybe it’s thought of when you just talk about the technical side of it,” Miller said.

“It casts a net far wider than just the technical community. … It’s very important to the region, and beyond, because of that.”

Miller and Fawcett also agree on something with Amis, Becker, Wilson and others: They don’t want to see the college further diminished.

In a statement following the Amis announcement, the university stressed that the polymer college is still a major player in its field.

“However, even with the overall reduction in the number of PSPE faculty members, UA still has more faculty than most other polymer institutions in the country. This year, UA has prioritized polymers by already hiring one tenure-track faculty member in Polymer Engineering and actively preparing for the addition of two more tenure-track faculty members: one in Polymer Science and another one in Polymer Engineering,” it stated.

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“They were consulting and advisory firms who also happen to do accounting and tax. All their investment dollars today, the majority of it, is about building consulting, advisory and outsource-related services. I don’t see movement by any of the Big 4 to go back to what they would call the smaller middle market segment. They have forever vacated that territory.”

But EY indicates otherwise.

EY’s Entrepreneur of the Year Award program, which has been around 30 years, is one way EY looks to build relationships with up-andcoming businesses, emphasized Butler, who has run that program for several years.

“Those are the next public companies of the future,” Repasky said. “So it’s more about identifying the right companies we want to work with we

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view on a growth path, the ones who are going to acquire — that brings in other potential service lines — and ones finding new niches in certain things who have innovative ideas.”

But the uncertainties in today’s business climate also bode well for companies like EY as change begets more work for professional service firms. From the buildup of dry powder in private equity, which puts even more emphasis on the importance of due diligence in dealmaking, to the complexities of the new tax bill, the chances to do more for existing clients are adding up.

And that’s going to be key in this team’s approach to growing the market.

“There’s a lot of growth opportunities,” Repasky said. “Private equity investment, private companies, expanding services into our dominant audit practice … there is lots of opportunity to bring the power of the firm to clients.”

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Mark has joined the firm as a Shareholder. Mark focuses his practice on complex civil litigation matters in federal and state courts. He represents companies ranging from small, local businesses to international companies and financial institutions, serving as “first chair” in multiple matters before the courts. He has also represented clients in bankruptcy cases and in administrative proceedings.

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Thomas Fraser

President and CEO of First Federal Lakewood and First Mutual Holding Co. The pressures of navigating today’s banking environment are felt even more acutely for community banks that have less capital to face challenges than their regional counterparts.

To address those headwinds while simultaneously supporting the mutual bank model, the parent corporation of First Federal Savings and Loan Association of Cleveland – the largest mutual bank in Ohio with more than $1.7 billion in assets — converted itself to the no-stock First Mutual Holding Co. in 2015. Doing so allows the company to secure affiliations with other mutuals, which not only preserves the viability of those banks, but supports its own legacy bank as well by expanding its total footprint. Crain’s sat down with FMHC president and CEO Thomas Fraser to talk about the mutual banking model and the industry overall. – Jeremy Nobile

Five things First job?

Paperboy, followed by high school jobs keeping score for baseball, basketball and softball games for local rec departments.

Something people don’t know about you?

I was a referee for high school and collegiate basketball for 25 years.

Any lessons from refereeing?

You can be technically right, but perception of fairness matters as much as actual fairness.

Any niche interests?

I have a master’s in history with an emphasis on 18th century colonial history and early U.S. history.

If you could have a beer with any historical figure, who would it be?

The poet Virgil because of his insights into human nature, especially during the tumult of changes going on in the Roman Republic at the time, which I think is analogous to today.

Lunch spot The Harp Irish Pub and Restaurant 4408 Detroit Ave., Cleveland

The meal House-made crab cake served over mixed greens with avocado salsa, black beans and corn salsa, tomatoes, cucumbers and crispy tortilla strips; plus a hot corned beef sandwich with house-prepared brisket and swiss cheese on toasted rye with iced tea.

The vibe A quintessential, folksy Irish feel, bright and loaded with wood accents. One of the restaurant’s best features is its view of Lake Erie.

The bill $28.03, plus tip

For starters, what was a highlight of 2017, perhaps the completion of that second affiliation since the inception of FMHC? Yes. Belpre (Savings Bank, which joined FMHC in 2016) is up and running, and we completed another one with a similarly sized bank in Parkersburg, W.Va. with Doolin (Security Savings Bank), which closed at the end of the year and merged in with Belpre. They’ve had a great year, making more loans last year than the last five years combined. Belpre exceeded its budget. We got them from being not viable, losing a couple hundred thousand dollars a year, to breaking even. And next year, they should be making 40 basis points ROA. Those are strong numbers. What are some of the key factors behind those?

Well, they had a lot of overhead for IT, rolling out small business products. The holding company now rolls that out for them and manages IT. But more importantly they have access to more products with us.

They can make more loans because we can help them with the infrastructure there.

So what’s the outlook for doing more affiliations from here? You don’t really build a pipeline per se like a typical commercial bank with an M&A strategy would, right?

There are 40 or so mutuals that remain in Ohio. Most are very small.

The median size is about $94 million, which is about the size of one of our branches. So they continue to wrestle with issues around viability given their size. How do they roll out new technology or products? And overhead is high. By affiliating with us, they can keep their independence and spread out those costs. We think that will cause more to want to come together. And to the extent a bank’s board and president are committed to mutuality, this is a perfect fit for them. So we’re continuing to have several discussions with those mutuals over time. We expect more to come.

When do mutual banks approach you about an affiliation like this?

Often times it’s driven by the timing of a CEO retiring or a critical investment they have to make.

Mutuals are making money, it’s just that their expense loads are really high.

You do a lot of work at the government level to promote the mutual business model, too, right?

Yes. We want to preserve mutual charters so we remain relevant. Right now, there is a little less than 500 mutual charters left, which is 8% of banking charters in the country. So a big initiative we’re working on with trade groups is how can we get other communities to create new mutual charters — instead of being served by new stock banks, why can’t we have a new mutual come together?

We’re having dialogue with regulators through trade and outreach groups on how we can get those going.

Why do you think there aren’t mutuals forming today? Maybe it’s because people simply want to make money with commercial banks.

Could be. I think we had such profound economic growth in our country in the ’80s and ’90s that the stock model became the model, and we had a lot of mutuals convert to stock during those periods. But there is a real sense of reinvesting back locally, and that this model could be viable, especially in the wake of the Occupy Wall Street movement and 2009 and the last credit crisis.

Surprisingly, although mutuals don’t have great earnings, we have consistent earnings around 40 to 50 basis points ROA. And only four or five of us failed during the credit crisis, whereas the carnage from the stock banks was much greater. So there’s a certain predictability and durability to our model.

Beyond the perks of affiliations and your outlook for those, any thoughts on the potential for organic growth in the market today and where that’ll come from?

So in Northeast Ohio, we have never seen a better opportunity to grow and expand. One of the consequences of all the mergers in the market and loss of banking headquarters are that the consumer banking and small business banking spaces are less served than they have been before. So if you’re an upper middle market or large company anywhere in the country, you get great banking services. If you’re a small business with less than, say, $8 million to $10 million in sales, and you have a credit need of a couple hundred thousand dollars, it’s hard to get attention. We think there is plenty of room for bankers to work with those individuals.

700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 Phone: 216-522-1383; www.crainscleveland.com Reprints: Laura Picariello ; (732) 723-0569 Customer service and subscriptions: 877-824-9373

Volume 39, Number 10 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2018 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00.

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