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VOL. 39, NO. 22

MAY 28 - JUNE 3, 2018

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The List

CLEVELAND BUSINESS

HEALTH CARE

Lake Health presses on as finances turn around

By LYDIA COUTRÉ

Northeast Ohio’s largest data centers Page 18 SPORTS BUSINESS

MARKETING BAKER MAYFIELD L.A. agency says Browns rookie QB ‘will be a superstar’

lcoutre@crain.com @LydiaCoutre

Following years of consolidation in Northeast Ohio’s health care market, Lake Health System is one of the few independent systems left standing.

And it intends to stay that way.

Despite a recent rating downgrade and two consecutive years of operating losses, Lake Health officials are optimistic about the future.

“We believe that being independent creates a home for independent physicians and like-minded physicians as well as keeps us supporting the community,” said Rick Cicero, senior vice president of marketing and business development for Lake Health. “Even though we’re a nonprofit, we generate significant tax dollars in this community. Being independent and directing the growth that we do in Lake County helps the county overall.”

In 2015 and 2016, the system reported a $30 million loss, which officials said was a one-time writedown stemming from problems with an IT system conversion. It represents both the added implementation costs and the results of billing delays that affected the system’s ability to collect services. In 2017, Lake Health posted a $4.8 million operating loss, significantly better than the $22.8 million loss the year prior.

“If you look at the ’17 versus ’16, we did have about an $18 million turnaround from an operating income standpoint, so we are definitely, obviously heading in the right direction there,” said Bob Tracz, chief financial officer for Lake Health.

By KEVIN KLEPS kkleps@crain.com @KevinKleps

Illustration by Michael Hogue for Crain’s

On April 26, the night he was selected first overall by the Cleveland Browns in the NFL draft, Baker Mayfield didn’t hug Roger Goodell and pose for pictures on stage.

And instead of allowing camera crews from ESPN and the NFL Network to follow a draft-night party in his hometown of Austin, Texas, Mayfield livestreamed the proceedings on Instagram.

The quarterback isn’t the first draftee who preferred to celebrate his big day at home, and an athlete using social media to tell his story isn’t exactly revolutionary in our instant-reaction society.

But for Mayfield it was one of the most visible examples of a whirlwind year that has played out like a documentary in which the protagonist is somehow an underdog (an undersized, two-time college walk-on) and a brash, highly decorated (think 2017 Heisman Trophy winner and No. 1 draft choice) prospect.

“He protected how his information got out there and controlled his own destiny in terms of brand and exposure on what at that point was the biggest day of his life,” said Eric Smallwood, the president of Apex Marketing Group, a St. Clair, Mich.-based sports sponsorship and analytics firm.

SEE LAKE HEALTH, PAGE 22 Entire contents © 2018 by Crain Communications Inc.

SEE MAYFIELD, PAGE 19

Focus: Cybersecurity << Many

still think they’re unlikely to be victims of cyber crimes. But they’re wrong. Page 11 Facebook woes amplify privacy concerns. Page 12 Colleges unite to advance cybersecurity awareness. Page 14

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Cleveland set to amp up small biz support

By JAY MILLER jmiller@crain.com @millerjh

The city of Cleveland is proposing to inject $3 million into its business support programs. The general fund money will allow the city’s economic development department to increase spending on several programs designed to help small business, as Mayor Frank Jackson’s $65 million Neighborhood Transformation Initiative gets underway on major housing and commercial projects.

It is the first time in years the city has used general fund dollars to support local businesses seeking to grow. Legislation to approve the spending is expected to pass through Cleveland City Council before the summer recess in June.

Councilman Anthony Brancatelli, chairman of council’s development, planning and sustainability committee, is pleased the Jackson administration is making the financial infusion.

“The timing on this is important, our UDAG (money) is drying up,” he said, referring to the federal Urban Development Action Grant program, a revolving loan fund. “We’ve been using UDAG (at times) to pay for economic development department salaries.”

These smaller-dollar programs rely heavily on federal housing and urban development financing programs, as well as on the repayment of past longterm loans, especially loans made from the UDAG program and the Neighborhood Development Investment Fund (NDIF). Loan repayments from those sources get turned into new loans.

“We’re getting a lot of traction for small business, but the loans are so labor intensive,” Brancatelli said. “We like to work on those 200-employee deals because they are so sexy, but it takes as much work to put packages together on loans for three and four jobs. I love the small ones.”

New funding for the UDAG program dried up at the end of the Reagan administration in 1989, but the city’s lending of the proceeds continued for several more years. Last year, for example, the owner of the Crittenden Court Apartments in the Flats made a $972,000 final payment on a loan using UDAG funds made in 1996.

The NDIF program was created by former Cleveland Mayor Michael White in the 1990s, with the proceeds from a $40 million settlement from a lawsuit. Because the city makes grants and forgivable loans, those pools of money are in steady decline, though David Ebersole, recently named the city’s economic development director, said he believes they should last for several more years.

The economic development department makes grants and low-interest loans, including forgivable loans, to businesses that cannot get sufficient traditional financing in the amount needed or at terms the business can afford. It also lends to businesses that want to rejuvenate idled or abandoned buildings. The city may use these loans and grants to help attract businesses, though local tax abatement or county and state incentives are often more important for those deals.

Loans or grants typically require pledges from borrowers to create new jobs. Awards for some programs can be reduced if job goals are not met.

The city’s economic development department came through last year for NaJeebah Shareef, owner of ILF Transportation. A $44,250 city grant filled a gap between a $233,250 Small Business Administration loan and her $19,000 in

equity, allowing her to acquire a building at 16113 St. Clair Ave. and additional vehicles for ILF, which provides non-emergency health care transportation to medical facilities and doctor’s appointments and delivery services.

“I had to be bankable for a Small Business Administration loan, and the city came in with some grant funding,” Shareef said. “It worked out great.”

Funding from all sources for the city’s small business economic development programs was $15.2 million in 2017.

That’s down substantially from $42.4 million in 2014, though the amount rises and falls as sources change and loans are repaid. It was $23.1 million in 2016.

“There are ups and downs, but if you look over the long term, there’s a pretty steady trend.” Ebersole said.

The new general fund money will as-

sist four programs. The Neighborhood Retail Assistance Program (NRAP) will get $250,000. This revolving loan fund provides loans to develop neighborhood commercial corridors, and increasingly, Brancatelli said, restaurants.

The city committed $479,500 to 13 NRAP projects in 2017, creating 40 jobs.

The Job Creation Incentive Grant program is designed to attract new businesses to the city and to encourage existing businesses to invest in job-creating expansions. It will get $500,000. To qualify, a business must pledge to create five new jobs in the first year. Awards are reduced if job targets are not reached. Restaurants and other retail businesses are not eligible. The city made six grants totaling $778,000, creating 734 jobs, in 2017.

The Neighborhood Development

program will get $500,000. Businesses can use neighborhood development loans to buy equipment or purchase or renovate a building. The city made 13 of these loans in 2017, creating 124 jobs.

Legislation also was reviewed to transfer $1.75 million from the general fund to fund several programs, including the Vacant Property Initiative, a program that helps pay for environmental assessments, demolition and cleanup of abandoned or underutilized commercial and industrial properties. The city committed $1.5 million to these loans in 2017, to borrowers who pledged to create 300 jobs.

Meanwhile, the development committee last Tuesday, May 22, passed along legislation approving the sale of city-owned land and tax increment financing (TIF) for the previously an-

nounced $14 million, mixed-use development proposed by The Finch Group on East 105th Street in Glenville, the first project in the mayor’s Neighborhood Transformation Initiative.

(TIF, which is similar to tax abatement, diverts future property tax payments to pay for infrastructure improvements.)

A year ago, Jackson announced the city and the banks had agreed to a major program to develop both housing and commercial operations in three target neighborhoods: the Buckeye-Woodland and Glenville neighborhoods on the East Side, and the Clark-Fulton neighborhood on the West Side.

The city will contribute $25 million in previously issued bond proceeds to the program. Local banks will come up with $40 million and maybe, Jackson said he hopes, even more.

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The Finch Group, a Boca Raton, Fla.-based real estate development and ownership concern, is getting ready to offer up a $20 million sequel to its Park Lane Villa luxury apartments in Cleveland’s University Circle, but with some big twists.

Finch is readying a plan to build an 11-story residential building on the north side of Park Lane Villa, a halfblock north of Chester Avenue on the east side of East 105th Street. The structure will have a contemporary design — vastly different from Finch’s Park Lane Villas, a 2005 project that restored a 1920s-era luxury hotel as apartments and helped launch a spate of residential development long overlooked in the neighborhood of museums, higher education institutions and hospitals.

This project also will offer for-sale condominiums in the district, putting Finch in a different space than its own Innova apartments at 10001 Chester Ave., where it’s completing a second phase, and a $15 million affordable housing project at East 105th Street near Superior Avenue called Circle North, part of Cleveland Mayor Frank Jackson’s Neighborhood Transformation Initiative. It’s also distinct from other rentals going into the area and region during the nation’s latest real estate rage — rental apartments.

Finch’s project will offer 18 units starting at $220,000 for about 2,200 square feet of living space, two to a floor, according to two sources familiar with the project who asked not to be identified because they are not authorized to speak about it. However, the hope is that the upper-floor suites may garner sales in the $900,000 range due to the region’s amenities.

Most important, the sources said Wesley Finch, the company’s founder, is enthused about the prospect of creating condos next to the vast CWRU Nord Family Greenway, a 20-acre transformation of the area between East 101st Street and Case Western’s Tinkham Veale University Center. The $20 million greenway is replacing neglected woodlands with lawns, walk-

The Finch Group is readying plans for an 11-story condo tower on Park Lane Avenue in University Circle. The nascent Residences at Park Lane is the balcony-rich building with the white exterior. It’s the building in the center, to the left of Park Lane Villa. (Contributed rendering)

ing paths and biking trails. One of the sources said Wesley Finch views the project as a Cleveland version of New York’s Central Park.

The proposed site of the so-called Residences at Park Lane overlooks the greenway. It also takes advantage of a tiny parcel on the north end of Park Lane Villa’s parking lot and enclosed parking garage.

The proverbial postage stamp-sized lot accounts for the unusual footprint of the building: just two flats per floor along with a lobby and elevators, the sources said. The parking garage at Park Lane Villa, they added, has excess space that can serve the soon-tobe proposed building.

The Finch Group has not formally circulated plans for the project, according to Debbie Berry, University Circle Inc.’s vice president of planning and real estate development. Although she has not seen the plan, she added that over the years, Finch Group has discussed its desire to do some sort of additional development at Park Lane Villa.

Berry said the nonprofit has hoped to see for-sale projects to add “permanent residents” to the area.

“In the end, it will depend on the market,” she said.

The project likely is designed for well-heeled empty-nesters and physicians associated with nearby hospitals, said David Sharkey, president of the Progressive Urban Real Estate brokerage, which has handled for-sale properties serving University Circle.

“It’s not an emerging market anymore,” Sharkey said.

Although it has proximity to socalled “eds and meds” workplaces, Sharkey said it remains to be seen how the location would sell. “It’s near things, but it’s not close,” he added.

Finch will likely have to sell at least half the suites in advance to swing bank financing before the project goes up if it wants bank financing, Sharkey added, which has kept a lid on condo projects in the region. However, the developer may have private equity or other unconventional funds lined up.

Moreover, Finch has financial strength from operations since 1981, including developing more than 10,000 condominiums in New England. All told, it has developed for its own account more than $300 million in residential projects since 2007, according to the firm’s website. Although it’s active on the affluent end of the market, Finch is best known for its low-income and affordable housing projects, especially turnarounds of failing U.S. Department of Housing and Urban Development-supported housing.

For its part, Finch Group declined comment.

Mark Dodds, Finch’s Cleveland-based project manager and inhouse architect, said he could provide no information on the project.

He said he would ask Wesley Finch to return calls from Crain’s Cleveland Business, but no return call was received by Friday morning, May 25.

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Industrial projects have yet to reach peak in NEO

By STAN BULLARD sbullard@crain.com @CrainRltywriter

The volume of industrial building projects in Northeast Ohio is continuing to climb and, incredibly, experts expect it to continue growing.

Real estate brokers are reaching back in memory â&#x20AC;&#x201D; far back â&#x20AC;&#x201D; to find a period thatâ&#x20AC;&#x2122;s as active as this one. â&#x20AC;&#x153;My analogy is 1999 or so,â&#x20AC;? said George Stevens, a vice president focused on the industrial market in CBREâ&#x20AC;&#x2122;s Cleveland office. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s going to be a run in our market the next several months like we havenâ&#x20AC;&#x2122;t seen in years.â&#x20AC;?

Ray Fogg Jr., president and CEO of Ray Fogg Corporate Properties in Valley View, said staffers at his family owned industrial construction, real estate development and ownership firm â&#x20AC;&#x153;have seen a surge in companies with interest and willingness to invest in bricks and mortar to expand their facilities or build new ones.â&#x20AC;?

Terry Coyne, a vice chairman at Newmark Knight Frankâ&#x20AC;&#x2122;s Cleveland office who practices in the industrial market, said the spate of Amazon warehouses that drove the market last year is not the only factor propelling all the action. â&#x20AC;&#x153;There are more deals coming. The user market is getting active,â&#x20AC;? Coyne said, referring to companies that like to own their buildings, especially manufacturers, but also health care firms and other logistics firms that provide lastmile distribution services. He said the impact will be clear within a year because demand is on the verge of pushing up prices for industrial land. Land and construction are the last to climb because businesses typically try to buy existing buildings to buy or lease. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;ll see comparable sale prices that will surprise people,â&#x20AC;? Coyne said, as there are locations in the market where industrial land prices are surpassing the price for more expensive but less in-demand office-zoned land.

Prices already climbed in the sector from a few years ago, he added, pointing to industrial sites formerly costing $65,000 an acre that now are commanding $125,000. Premium sites that used to be $125,000 now surpass $200,000 an acre.

Coyne also points to the active industrial market in the late 1990s for his analogy, but with a big difference. â&#x20AC;&#x153;This is more sustainable,â&#x20AC;? he said.

New forces are adding pressure to the market beyond the low vacancy rate among industrial properties, especially newer, more efficient buildings. Trump administration tariffs on steel and aluminum will produce two more building projects Coyne is working on for clients he refused to identify. He also believes the new tax law will add to demand.

With U.S. companies bringing offshore money back to the U.S. under provisions of the tax act, there is added impetus to spending on buildings and equipment, Coyne said. In other words, that is the property marketâ&#x20AC;&#x2122;s version of the much-reported move by public companies to use lower taxes to buy back stock.

Fogg said the other factor is that although building has picked up in the last three years among the massive warehouses that serve distributors, there has been much less industrial building for many years than in the 1990s. Now that the market is strong, supply is more constricted than usual, Fogg said. But with every company, he added, its needs, situation and geographic location creates a different set of factors guiding its decisions.

The first whiff of inflation also is encouraging companies to move on capital expenditures. CBREâ&#x20AC;&#x2122;s Stevens said companies often feel they need to go after projects sooner rather than later because prices are likely to go up. Small price hikes from inflation add up quickly on multimillion-dollar building programs.

Reports from brokerage firms show the situation on multiple levels.

The obvious contributor to the building surge is the shortage of empty industrial space.

As of March 31, Newmark Knight Frank reports vacancy in the category fell to 5.8% from 6.3% at the like period last year. In the southeast and southwest suburbs, defined by proximity to I-271 and I-71, respectively, vacancy is below 4%. However, in the legacy industrial markets near central Cleveland, with a predominance of older, multistory inefficient properties, itâ&#x20AC;&#x2122;s the highest in the region, at 8%.

Construction statistics also show the trend, but they are bloated by the massive Amazon distribution centers rising in Euclid and North Randall. According to Newmark Knight Frank, 3.6 million square feet of industrial construction was underway by the end of this yearâ&#x20AC;&#x2122;s first quarter, compared with 538,188 at the like point of 2017.

The other way brokerage reports show the depth of the market is listing a half-dozen or so projects, often already intensely covered in the news media.

Projects range from the likes of polymer manufacturer Trelleborg A.B. planning a 160,000-square-foot plant in Aurora to a just-completed 188,000-square-foot warehouse for Heilind Electronics in Mentor. However, brokerage firms donâ&#x20AC;&#x2122;t follow projects under 40,000 square feet in size, even though they may cost millions. For example, Fogg recently finished South Korean tire manufacturer Nexen Tire Corp.â&#x20AC;&#x2122;s 35,000-square-foot technical center, which includes offices, equipment and storage space, in Richfield.

David Boyer, general manager of Rudolph Libbe Groupâ&#x20AC;&#x2122;s North Ridgeville office, said the company, which does some commercial work but focuses on jobs for industrial concerns, estimates its business has climbed more than 10% the last few years. Much of the run-up is in construction of buildings, but he said more companies are looking at expansions and renovations of existing plants.

Itâ&#x20AC;&#x2122;s a broad-brush factor in the industrial real estate market. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re seeing it in metals, chemical and general manufacturing,â&#x20AC;? in addition to distribution, Boyer said.

The company recently formed a six-person team, called SiteLine, that serves the Cleveland area from Toledo.

That team will help customers find and buy sites and design them as well as its traditional building services, a reflection the market is stronger for new buildings as well as more demand by companies for turnkey solutions.

Stevens worries that price run-ups may keep some business owners from doing new industrial deals. And if new projects donâ&#x20AC;&#x2122;t continue to go into the mix, he worries about what it will mean from some industrial tenants in existing buildings.

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CRAIN’S CLEVELAND BUSINESS

Opinion From the Editor

How to make the best pitch We get dozens of story pitches every day here at Crain’s.

Some are from PR agencies, others from internal communications staff. It’s what these folks do for a living, so they usually know what makes a good story idea and what doesn’t. I bet they’d admit to sometimes pitching ideas that don’t measure up, too.

What about small business owners, who likely are handling communications themselves or have handed over those duties to a staffer with little or no experience with media relations? How can they get their worthy stories told?

In this week’s column and next, I will be sharing some advice for getting your story ideas noticed. This may be particularly helpful Elizabeth for small businesses and some communicaMcIntyre tion professionals who need a refresher. Know this first: If you have news to share, we at Crain’s want to hear it.

Editorial

Working group The steady dip in the Ohio’s unemployment rate makes for good headlines, particularly for the Republican Party as it — undeterred by the spectacle in our nation’s capital — attempts to cling to the state’s highest office. Of course, the economic condition of the state and particularly Northeast Ohio is much more nuanced than a monthly jobs report.

The fact is that our state’s economy has fundamentally changed in the wake of the Great Recession, and grappling with that new normal has proven difficult for too many. And now that the Republican and Democratic parties have minted their gubernatorial nominees — Mike DeWine and Rich Cordray, respectively — it’s time for some serious soul-searching about the kind of economy we’re trying to nurture.

Namely, there needs to be a conversation about the working poor and about what our government — and the state’s employers — are doing to lift these folks out of poverty.

Here’s a startling statistic: In Ohio, data show that a large number of workers at Amazon, Walmart, Home Depot, Cleveland Clinic and Target — some of the state’s largest employers — rely on the Supplemental Nutrition Assistance Program, the federal initiative formerly known as food stamps, to get by.

Amazon, the latest darling of economic development officials locally and across the country, ranked 53rd in overall employment numbers in Ohio last year but 19th when it came to employees using SNAP. So, are lucrative incentives for major corporations the only way to grow our state and regional economy — specifically an economy that lifts those who have struggled to regain their footing in the recession’s wake? It doesn’t appear so.

Of course, we’re not naive. Incentives will continue to be offered as long as corporations keep asking and playing their cards right. For example, was a $500,000 loan needed to woo Covia Holdings Corp. — the expected post-merger incarnation of Fairmount Santrol — to a new headquarters in Cuyahoga County? Even as part of a combined $3.4 million incentive

package being put together by state, county and city officials, we doubt it was too consequential for a multinational mining giant whose annual revenues are expected to exceed $2 billion.

As we look to elect our next governor, we are hopeful the candidates’ visions for economic development go beyond crafting incentive packages and talk of luring giants like Amazon.

Incentives can play a critical role in an overarching economic development strategy, but they certainly can’t be the main pillar.

Our elected leaders should also be demanding far more of companies benefiting from its Job Creation Tax Credits than requiring the creation of 10 jobs within three years paying an average 150% of the federal minimum wage, or $10.88 per hour — an idea championed in a recent report from the left-leaning Policy Matters Ohio think tank.

U.S. Sen. Sherrod Brown, D-Cleveland, went as far as proposing — though the half-baked idea has little chance of advancing beyond the headlines — a so-called “corporate freeloader fee” to penalize companies that employ low-wage workers.

We aren’t claiming to have the answers, but a thoughtful debate about crafting an economy that works for all Ohioans needs to happen — and we’re hopeful it involves more than a few deal sweeteners for those employing the most but paying so little.

Get to work

In the above editorial we outlined the need for a large-scale vision for the state’s economic development, but state lawmakers are showing their inability to function at even the most basic level.

By Crain’s deadline, lawmakers in the Ohio House failed again to elect a new speaker — a void left with the resignation of Cliff Rosenberger amid an FBI probe. As such — and even with a lame duck governor — there’s still work to be done.

It’s time for warring factions within the House to put their differences aside and swiftly install a new speaker so the people’s business can resume.

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

Know what you’re pitching and to whom: Identify what your news is. Maybe you recently made an acquisition, or named a new CFO, or are noticing a noteworthy trend in your business. Then, figure out the best reporters and editors to share the information with.

That’s where some PR people drop the ball by carpet-bombing hundreds of reporters and editors with the same generic mass emails, which damages their credibility as a source of information.

Instead, read the publications to which you are pitching and familiarize yourself with reporters and their beat assignments.

Target your emails to journalists most likely to be interested in what you’re pitching. Search for staff information on a media outlet’s website or in print. (For example, the staff box for Crain’s Cleveland Business is on the next page and at www. crainscleveland.com/section/contact.)

Here’s what not to do: I recently received a press release about a metal fabrication company receiving industry certification. The email was promptly deleted because: 1) we don’t write about business certifications, and 2) the company is in Troy, Ohio, north of Dayton. The business would have been better off limiting its outreach to Dayton-area media outlets.

Seek out coverage opportunities: Publications like Crain’s put together an editorial calendar that’s updated throughout the year. On it, we list the weekly special Focus section that we publish, which is usually tied to a specific industry or sector, such as real estate, small businesses, health care or, in this issue, cybersecurity. We also note custom publishing opportunities, our weekly list and events.

If you’d like to pitch a story idea for an upcoming editorial special Focus section, reach out about six weeks in advance of the publication date to editor Tim Magaw, who is responsible for the content on those editorial sections, at tmagaw@crain.com or 216-771-5359.

If you’re interested in discussing custom publishing opportunities through Crain Content Studio-Cleveland, which is the marketing storytelling arm of Crain’s Cleveland Business that is not affiliated with our newsroom, contact Amy Stoessel, managing editor for custom/special projects, at astoessel@crain.com or 216-771-5155.

We both need each other: Don’t get discouraged if nothing comes from a story pitch. Keep pitching. You and your company are on the frontlines of your industry and often recognize trends before we do. You provide us with interesting story ideas and sources that can give life to our stories. We help you by spreading awareness about your company and clients.

Next week, I’ll offer more advice on how to successfully pitch your story ideas to Crain’s and other media outlets. And in the meantime, I’d appreciate your feedback on getting your news out. Feel free to call or send me an email.

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

INVESTMENT PROPERTY FINANCING

Letter to the Editor

Family, employer support are keys to Alzheimer’s care When I read Crain’s publisher and editor Elizabeth McIntyre’s May 13 column, “Time with dad was final gift,” I was struck by her experiences as a loving daughter and as an employee, treated with compassion, caught up in needing time to be with her father in his final days. That McIntyre’s father was also a caregiver to his wife who has dementia brings her story into sharper focus.

Almost every day at the Alzheimer’s Association, our families share similar stories of trying to lovingly support a parent with dementia while also working full-time and caring for their own family. In Ohio, 220,000 persons are living with Alzheimer’s or other dementias, and 600,000 caregivers are providing more than 684 million hours of unpaid care annually.

McIntyre’s experience of support from within this publication’s management and her colleagues is exceptional. She wrote, “As a manager, I’ve longed stressed to my employees that ‘family comes first.’ I’m grateful to work for a company that understands that.”

Unfortunately, that is not the case for all employees and employers.

The Alzheimer’s Association recently released information about dementia caregiving in Ohio. Did you know that more than 60% of all Ohio adults providing unpaid care to loved ones with Alzheimer’s or dementia have been doing so for more than two years? Or that almost 30% of the same group of caregivers provide 20 or more hours of care per week? And more

than one in four Ohio dementia caregivers are in the “sandwich generation” — caring for both someone with dementia and a child or grandchild?

Alzheimer’s is a public health crisis and an enormous challenge. More than 5.7 million Americans are living with Alzheimer’s today, and by 2050 the number is expected to rise to nearly 16 million. This year, Alzheimer’s and other dementias will cost the nation $277 billion.

The Alzheimer’s Association works to advocate for early and accurate diagnosis that could save up to $7.9 trillion in medical and care costs. Every 65 seconds, someone in our country develops Alzheimer’s. Tragically, in the time it has taken you to read this, three people have developed the disease.

Referring to businesses that support employees with compassion, McIntyre wrote, “A culture of caring breeds a culture of loyalty, which strengthens any business.”

The Alzheimer’s Association Cleveland Area Chapter offers free, one-hour programs tailored to businesses of any size and their employees to educate and inform about our services, including local free caregiver support services. The chapter is an advocate for persons living with Alzheimer’s and their families.

Family comes first, as McIntyre wrote. And no family should face Alzheimer’s alone.

Nancy Udelson President & CEO Alzheimer’s Association Cleveland Area Chapter

Web Talk Re: June 7 opening of Shake Shack

Re: May Co. building redo ready to roll

Shake Shack may be great. But developing Pinecrest in Orange was a big mistake, an indictment of our area’s values and a perfect example of how we value French fries over green space.

A county with a declining population, high poverty and declining median income does not need more retail and places to eat.

Chains moving into Pinecrest are just cannibalizing from other places.

— StopBackRoomDeals

If the “M” windows on the building cannot be saved, I hope at least one of them gets donated to the Western Reserve Historical Society, or they could be repurposed in a public space so everyone can continue to enjoy them. — Blythe

Elizabeth McIntyre Mary Kramer Scott Suttell Tim Magaw David Kordalski Damon Sims Sue Walton Kevin Kleps Stan Bullard Real estate/ construction Reporters Jay Miller, Government Dan Shingler Energy/steel/auto Rachel McCafferty Manufacturing/ energy Jeremy Nobile, Finance Lydia Coutré, Health care Data editor Chuck Soder Cartoonist Rich Williams *** Events manager Ashley Ramsey Marketing coordinator Megan Lemke Integrated marketing manager Michelle Sustar

Publisher/editor Group publisher Managing editor Sections editor Creative director Web editor Associate editor/Akron Assistant editor Senior reporter

Re: Demand for used items strain nonprofits Curbside pickup, which would mimic the current clothing recycling ventures, would help. It’s easier to leave something on the front steps for pickup than to have to drop it off at a collection center. — 231248

CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 www.crainscleveland.com @CrainsCleveland Managing editor custom/special projects Director of sales Senior account exec.

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*** G.D. Crain Jr., Founder (1885-1973) Mrs. G.D. Crain Jr., Chairman (1911-1996) *** Reprints: 732-723-0569 Laura Picariello, lpicariello@crain.com Customer service and subscriptions 877-824-9373

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CRAIN’S CLEVELAND BUSINESS

At the Table

New spots in Pinecrest and Willoughby set to open It kind of feels like restaurant-opening season, even though there really isn’t such a thing. Places come and go year-round, of course. Yet a procession of debuts seems to be on the horizon, and here are just a few.

Joe Look for two of North- Crea east Ohio’s highest-profile openings over the next few weeks at the unfolding Pinecrest development in Orange Village.

First up: City Works Eatery & Pour House, a restaurant boasting more than 90 local, regional and international brews (and locations in Texas, Minnesota, Florida and Pennsylva-

nia), opens to the public at 3 p.m. Friday, June 15.

Launch of the roughly 9,000-square-foot, 180seat restaurant (including two patios) comes just in time for Father’s Day weekend, but a special soft opening fundraiser kicks off the proceedings from 6 to 9 p.m. Thursday, June 14.

Tickets for the benefit ($50 and up) include a first look at the pour house, samplings of dishes from City Works’ “upscale American cuisine” menu and an open bar. Proceeds go to the Gathering Place, Beachwood’s center that supports those experiencing cancer and their families.

It kind of feels like restaurant-opening season, even though there really isn’t such a thing. Places come and go year-round, of course. Yet a procession of debuts seems to be on the horizon.

Tickets for the First Draft Charity Event at City Works Eatery & Pour House can be purchased online at tinyurl.com/cwfirstdraft.

Meanwhile, mid-June will also see the debut of Firebirds Wood Fired Grill, also in Pinecrest. Billed as a casual American steakhouse, the Charlotte N.C.-based group will open a

roughly 6,500-square-foot restaurant seating upward of 200 guests. Unlike traditional beef palaces that feature a dark, clubby atmosphere, the operators boast an airy, open motif and an expansive patio. Firebird’s menu will feature all the usual steakhouse pleasures grilled over hickory, oak and pecan. Standard menu items will in-

clude nearly a dozen cuts of beef (plus burgers and steak-topped salads), an array of chicken dishes, fresh seafood and entrees.

While construction and finishing work continues on other eateries in Pinecrest (Shake Shack, 3 Palms Pizzeria, Bibibop, Restore Cold-Pressed, Duck Donuts and Red The Steakhouse among them), Willoughby will soon enjoy another dining destination. The Chagrin Valley Diner is set to open on Monday, June 11, at 4099 Erie St. I’ll have more on that breakfast-and-lunch spot (5 a.m. to 3 p.m. seven days a week) very soon.

And while we’re charting openings, one more for now. Cinnaholic, the cinnamon roll franchise, opened May 25 in the Promenade of Crocker Park. It’s the first Cleveland area location for the chain, which specializes in over-the-top cinnamon rolls, brownies and other confections, all of which are vegan friendly.

Goodbye to ‘The Chew’

Litigate.

Win. Repeat.

On May 23, ABC announced the cancellation of its daily daytime show “The Chew,” which co-starred Cleveland star chef Michael Symon.

Network officials told the Hollywood Reporter that plans to expand ABC’s morning juggernaut “Good Morning America” pushed out renewal of “The Chew” to an eighth season.

“Over the past six years, ‘Good Morning America’ has solidified its place as America’s No. 1 morning show,” said Ben Sherwood, co-chairman of Disney Media Networks and president of Disney ABC Television Group, in a statement announcing the move. “We believe there is great opportunity for viewers and advertisers in expanding to a third hour.”

“The Chew” will continue to air until September. Symon could not be reached for comment.

Blended burger

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Now through July 31, you can help send a Cleveland restaurateur to cook at the famed James Beard House in New York City.

You’ll recall the concept: Creative chefs combine a blend of 75% beef or other protein with 25% finely chopped mushrooms (and whatever other flavorful ingredients they choose). The goal is to create a juicy burger loaded with “umami” (that indescribable “yumminess” that mushrooms lend to other flavors). Blended burgers are lower in calories, cholesterol and saturated fat while more environmentally sustainable than patties made from pure animal protein.

The 20 restaurants that earn the most votes nationwide will be the finalists. A panel of food experts will choose five to win a trip to cook their burgers at Beard House.

If you want to sample the competing blended burgers, you’ll find them on the menu at the following Northeast Ohio restaurants: Alley Cat Oyster Bar, Astoria Cafe & Market, Chinato, Cowell & Hubbard, Creekside Restaurant, Der Braumeister, L’Albatros Brasserie, Nuevo Mod Mexican-Akron, Nuevo Mod Mexican-Cleveland, One Eleven Bistro, Parallax, Table 45, Thyme 2 and Tremont Tap House.

To vote for your favorite Cleveland area competitor, visit tinyurl.com/ blendedburgervote. Voting ends at 11:59:59 p.m. on July 31.

CRAIN’S CLEVELAND BUSINESS

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Focus CYBERSECURITY

IT COULD HAPPEN TO YOU Despite constant cyberattacks, many still think they’re unlikely to be victims

By JEREMY NOBILE jnobile@crain.com @JeremyNobile

D

espite constant cyberattacks, regular high-profile data breaches and soaring costs to battle those around the globe, many in the business world still think they’re unlikely to be victims of cybercrimes.

That kind of mentality may even be more prevalent in Ohio and the greater Midwest, said John Nicholas, professor of computer information systems at the University of Akron overseeing the school’s cybersecurity-related programs. And it’s one of the driving reasons people and firms in this market may still lack cyber protections and a clear plan on how to address — or even notice — a breach or attack.

“I think the mentality is that we’re a flyover state, and flyover country has felt this imaginary barrier because we are in the middle of the country and not on the coasts,” Nicholas said.

“There’s always this feeling that we’re safer than the coasts that’s been passed on over time. But with technology, it doesn’t matter where you are physically anymore. You can touch the world. With this, those geographical barriers we’re so comfortable with in the past won’t protect us.”

Before joining the university’s IT staff about 18 years ago, Nicholas designed circuit boards and chips for systems at manufacturing companies, which remain some of the most prevalent holdouts in adopting basic cyber protections and protocols. There’s a reluctance by those companies to accept that they could be targeted. That, coupled with the costs to adopt cybersecurity measures or related employee training or insurance protection — which many business owners may view simply as a loss on the balance sheet — means those holdouts are leaving themselves open to attacks.

SEE CYBERCRIME, PAGE 16

Illustration by dane_mark via iStock

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CYBERSECURITY

Crain Content Studio-Cleveland will highlight accomplished women within Northeast Ohioâ&#x20AC;&#x2122;s manufacturing sector in a special custom section July 23.

Submit your nomination today: CRAINSCLEVELAND.COM/NOMINATIONS Deadline to nominate is June 1.

This advertising-supported section will be produced by Crain Content Studio-Cleveland, the marketing storytelling arm of Crainâ&#x20AC;&#x2122;s Cleveland Business. The Crainâ&#x20AC;&#x2122;s Cleveland Business newsroom is not involved in creating Crain Content Studio-Cleveland content.

For questions, contact Amy Ann Stoessel, managing editor of custom and special projects, at astoessel@crain.com or at 216-771-5155.

LEARN ARN MORE TODAY ABOUT HOW CRAINâ&#x20AC;&#x2122;S CAN HELP YOU AND YOUR CONTENT MARKETING PROGRAM. Contact Amy Stoessel at 216.771.5155 or astoessel@crain.com.

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Facebook woes amplify concerns regarding privacy

By DOUGLAS J. GUTH clbfreelancer@crain.com

Over the last few years, massive data breaches have impacted millions of consumers worldwide, with Equifax, FedEx, Uber, the online travel site Orbitz, and other entities hard hit by cyber thieves. Meanwhile, the Department of Justice and the Federal Bureau of Investigation have launched an inquiry into data mining firm Cambridge Analytica amid the privacy scandal currently embroiling Facebook While itâ&#x20AC;&#x2122;s not certain if the investigation is related to Cambridge Analyticaâ&#x20AC;&#x2122;s alleged ties to the 2016 campaign of President Donald Trump, Facebookâ&#x20AC;&#x2122;s recent drama represents an object lesson in how organizations and businesses must better govern the data entrusted to them, said cybersecurity experts interviewed by Crainâ&#x20AC;&#x2122;s.

If nothing else, Facebook losing control of user data has created a dialogue about privacy at a scale never before seen, noted David Wintrich, chief academic officer at Tech Elevator, a Cleveland-based coding boot camp. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s been larger breaches, but with Facebook it hit closer to home for more people,â&#x20AC;? Wintrich said. â&#x20AC;&#x153;There was a direct impact on Facebookâ&#x20AC;&#x2122;s stock price and users leaving the platform. If businesses werenâ&#x20AC;&#x2122;t paying attention, they should have been.â&#x20AC;?

Facebook has claimed the recent

breach wasnâ&#x20AC;&#x2122;t an actual hack into the system, providing cold comfort to the as many 87 million users whose data was gathered by a quiz app that siphoned information from the friends lists of its participants. The data was then supposedly packaged and sold in violation of Facebookâ&#x20AC;&#x2122;s terms of service to provide ad targeting expertise for the Trump campaign, representing a possible violation of American election laws.

Whether or not the Cambridge Analytica incident technically constitutes a breach â&#x20AC;&#x201D; an allegation disputed via Tweet by Facebookâ&#x20AC;&#x2122;s chief security officer in March â&#x20AC;&#x201D; it was certainly a breach in trust for millions of social media users with expectations of privacy. Regaining consumer trust requires a redoubled focus on culture, an element of data security that gets lost in hectic environments built on innovation, Wintrich said. â&#x20AC;&#x153;Facebook is famous for its motto of moving fast and breaking things,â&#x20AC;? he said. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a notion that theyâ&#x20AC;&#x2122;re willing to tolerate bugs and rough edges in service of capturing market share. But if you break foundational infrastructure, it can be terribly disruptive. They werenâ&#x20AC;&#x2122;t exactly protecting user privacy.â&#x20AC;?

As physical safety and security are baked into the culture of most workplaces, data privacy should be treated with equal respect, starting at the C-suite level and trickling down into the rest of the organization.

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â&#x20AC;&#x201D; David Wintrich, chief academic officer at Tech Elevator

Mark Zuckerberg, CEO and founder of Facebook, listens during a joint hearing of the Senate Judiciary and Commerce committees in Washington, D.C., in April. (Al Drago/Bloomberg)

â&#x20AC;&#x153;Leadership has to take ownership of that policy â&#x20AC;&#x201D; they have to buy into it, live it and put teeth behind it,â&#x20AC;?

Wintrich said. â&#x20AC;&#x153;(Facebook CEO) Mark Zuckerberg was culpable in creating a culture that didnâ&#x20AC;&#x2122;t put as much emphasis on that. You need a leader at the top of the company saying, â&#x20AC;&#x2DC;We screwed up and letâ&#x20AC;&#x2122;s do something about it.â&#x20AC;&#x2122;â&#x20AC;?

Robert Eckman, recently appointed by Cleveland State University as executive director of the Cleveland-Marshall College of Law Center for Cybersecurity and Privacy Protection, encourages every organization to foster a company-wide culture of data privacy in the face of a growing

threat landscape. According to a study from independent research firm the Ponemon Institute, the average cost of a data breach is $7 million, with an estimated one-third of companies globally expected to undergo some form of cyber assault within the next 24 months. â&#x20AC;&#x153;When thereâ&#x20AC;&#x2122;s these levels of data loss across the board, weâ&#x20AC;&#x2122;re going to see organizations focusing on security internally,â&#x20AC;? Eckman said. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s the necessary byproduct of these attacks.â&#x20AC;?

Tools to combat malware and other online dangers are prevalent in business, but itâ&#x20AC;&#x2122;s the end-user that often poses the most imminent threat to data security, Eckman said.

Without proper education, employees may unknowingly open phishing emails or click links to websites built to steal their info.

Hyland Software security evangelist Josh Gatka said â&#x20AC;&#x153;awareness trainingâ&#x20AC;? in maintaining the privacy of personal information must be part of everyoneâ&#x20AC;&#x2122;s job. â&#x20AC;&#x153;Organizations should strive to train their employees, on a recurring basis, on how to handle the personal and private information of those that they do business with,â&#x20AC;? Gatka said in an email. â&#x20AC;&#x153;Training is typically supported with policies and audits that reinforce and cultivate a focus on data privacy and security.â&#x20AC;?

For companies entrusted with customer data, the first step is understanding precisely what kind of data theyâ&#x20AC;&#x2122;re responsible for, Eckman said. â&#x20AC;&#x153;A lot of organizations donâ&#x20AC;&#x2122;t know what their sensitive data is,â&#x20AC;? he said. â&#x20AC;&#x153;It could be electronic medical records or credit card numbers, but what about intellectual property? If you donâ&#x20AC;&#x2122;t know what you have, you wonâ&#x20AC;&#x2122;t know how to protect it, and wonâ&#x20AC;&#x2122;t be able to communicate that to your employees.â&#x20AC;?

An in-house data classification policy ensures this information is not only cataloged, but determines what channels itâ&#x20AC;&#x2122;s moving through as well.

Eckman said all universities should form a data governance team that controls access to student records based on regulatory requirements from Family Educational Rights and Privacy Act (FERPA) resources. FERPA compliance outlines the acceptable use of student information, helping schools draft policies on software security or how to protect administrative network passwords. â&#x20AC;&#x153;Companies should have strong internal policies on who can access what data, and how easy it is to access,â&#x20AC;? said John Nicholas, a professor of computer information systems at University of Akron. â&#x20AC;&#x153;Lots of companies are upping their game, pulling

employees aside about making good passwords, or limiting through policy what sites workers can visit to eliminate back-door breaches.â&#x20AC;?

More organizations are also considering data quality, and whether itâ&#x20AC;&#x2122;s legal, ethical or appropriate to utilize certain types of data for a particular purpose. A company like Goodyear, for example, shouldnâ&#x20AC;&#x2122;t need a customerâ&#x20AC;&#x2122;s driverâ&#x20AC;&#x2122;s license number as part of its record-keeping process, Nicholas said.

The team making these decisions should be comprised of anyone with access to data, be it an operationsâ&#x20AC;&#x2122; manager, human resources official or IT expert, said Cleveland Stateâ&#x20AC;&#x2122;s Eckman. Study regulations carefully: The European Unionâ&#x20AC;&#x2122;s General Data Protection Regulation (GDPR) is expected to bring about the biggest change to European data security in 20 years, a decision potentially impacting U.S. companies that collect personal data or other information from someone in an EU country. Dereliction of GDPR regulations could result in massive financial penalties of 20 million euros or 4% of a companyâ&#x20AC;&#x2122;s global revenue. â&#x20AC;&#x153;Whatâ&#x20AC;&#x2122;s driving the industry is not just being on the news,â&#x20AC;? Eckman said. â&#x20AC;&#x153;(Non-compliance) is going to have true consequences that will force companies to reassess their revenue structure as a result.â&#x20AC;?

If the Facebook scandal has taught companies anything, itâ&#x20AC;&#x2122;s that once their data is out there, thereâ&#x20AC;&#x2122;s no getting it back. Just as organizations need to consider the quality of their data, they must also determine the uses to which they put their most vulnerable information. â&#x20AC;&#x153;The bad guys are one step ahead and will remain so,â&#x20AC;? Eckman said. â&#x20AC;&#x153;So be careful what you share and how you share it. Be vigilant, aware and make sure to arrive at your own conclusions.â&#x20AC;?

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Case Western Reserve’s expertise in the engineering realm is its chief contribution to the burgeoning academic alliance. (Contributed photo)

tor,” Loparo said. “Each university by itself may not have had the bandwidth to address these issues, but through the team we’ve assembled, we have a richer set of offerings to bring to the table.”

Though still at the embryonic stage, the alliance is timely, said officials, as computer networks worldwide are under attack from ever-evolving strains of viruses and malware. The rapid adoption of IoT devices and applications — which themselves are connected to vulnerable network infrastructures — poses a risk that many people still don’t fully understand. An attack related to

unsecured IoT devices could be disastrous for unprepared organizations — 81% of corporate respondents surveyed by independent research firm the Ponemon Institute said they expected a data breach caused by an unsecured IoT device within the next 24 months.

Through alliance programming, the trio of universities will prepare students for a workforce in which technical know-how is needed in a variety of areas. One possibility is a virtual computing lab similar to the Oho Cyber Range at the University of Cincinnati, where participants learn techniques to protect

and defend digital assets. Similarly intensive instruction locally could be used to stop a distributed denial-of-service (DDoS) attack on a company server, or mitigate an assault on the electrical grid or other operational infrastructure.

“If we land the cyber range, students and professors would be getting specific training in a live-fire environment,” said Ray, the Cleveland State professor. “Every industry and entity large or small is going to need some kind of cybersecurity presence.”

Cyber defense is becoming a priority from a business strategy perspective as well, due to a burgeoning array of data privacy regulations. Cleveland State’s law school currently carries a cybersecurity and data privacy concentration, one Ray would like to expand in step with the alliance’s growth.

The nationwide call for legal data security experts highlights how deeply cybersecurity is intertwined throughout every level of industry, alliance officials said. A visit to cyberseek.org — a site tracking the nation’s digital talent gap — showed more than 6,600 cybersecurity job openings in Ohio alone.

Engineers, analysts, help-desk workers, and software developers are among the positions available.

Ultimately, the region’s new cybersecurity-focused educational alliance is a foundation upon which advances in the field can be built, supporters said.

“Cybersecurity cannot be an afterthought in any design or innovative process going forward,” said Case Western Reserve’s Loparo. “It has to be something that’s thought about seriously from day one.”

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PA G E 15

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PA G E 16

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Nicholas said firms should simply view costs for cyber protection as a fixed cost, like utilities. â&#x20AC;&#x153;IT and cybersecurity folks have to be constantly ready,â&#x20AC;? he said. â&#x20AC;&#x153;This is something that changes multiple times a day, with attacks happening every day. Itâ&#x20AC;&#x2122;s an expense businesses canâ&#x20AC;&#x2122;t ignore.â&#x20AC;?

Some industries, like finance and telecommunications, are required to have cyber protections because of governmental regulation. But that's led to gaps in protection for other areas, like manufacturing, for example.

As hackers become more sophisticated, and their attacks offer potentially lucrative paydays, the companies and sectors that have been holding out are becoming increasingly targeted.

In the last two years, thereâ&#x20AC;&#x2122;s been a noticeable spike in ransomware attacks targeting the manufacturing sector particularly, said Margaret Ludwig, a Cleveland-based managing director for USI Insurance Services.

A common cyberattack is a data breach in which employee information is stolen in some way. Some hackers impersonate high-ranking officials and trick employees into giving over money. One attack involves a hacker posing as a CFO (slightly tweaking email addresses in hard-to-notice ways in a method called spoofing) and telling staff to wire thousands of dollars immediately to a bogus company.

With ransomware, a hacker could take a company hostage by locking them out of their systems.

Ludwig referenced a company that was reluctant to install new cyber protections because it meant shutting down a plant for a full day. They were eventually a victim of ransomware, and the attack and the ensuing recovery led to the business shutting down for nearly a week. They had to pay the ransom and there was no real justice on the attackers.

That support of impact can put some smaller firms out of business.

And those attacks are more common than the public realizes because many will simply go unreported.

Companies want to avoid getting attention from a cyberattack lest the public find out. Some are simply embarrassed. They donâ&#x20AC;&#x2122;t want to admit they werenâ&#x20AC;&#x2122;t prepared to handle an attack or relive the sequence of errors that led to them being tricked or hacked. Many refuse testify when authorities need them to. Others fear how the optics of one cyberattack could affect future business. â&#x20AC;&#x153;The hacker using ransomware can shut down a computer system holding it hostage. And thatâ&#x20AC;&#x2122;s not just accounting and payroll systems. They can legitimately stop production systems,â&#x20AC;? Ludwig said, noting some insurance policies today are available to cover losses incurred during a ransomware-driven shutdown. â&#x20AC;&#x153;These ransomware attacks are their own business."

'Suffer the consequences' Itâ&#x20AC;&#x2122;s not just ransomware thatâ&#x20AC;&#x2122;s prevalent today, and itâ&#x20AC;&#x2122;s not just manufacturers being targeted â&#x20AC;&#x201D; those are just some of the more seemingly common attacks in one of the regionâ&#x20AC;&#x2122;s big business sectors.

According to a February 2018 study by the Washington, D.C., think tank Center for Strategic and International Studies and McAfee, worldwide cybercrime costs now amount to an estimated $600 billion annually â&#x20AC;&#x201D;a 20%

increase compared with results from the last study, conducted in 2014.

That increase is all the more confounding as cybersecurity itself has become better, related insurance policies have become more refined, and attacks remain as prevalent as ever if not more so.

It all comes down to the same holdups: costs of time and capital to

â&#x20AC;&#x153;IT and cybersecurity folks have to be constantly ready.

This is something that changes multiple times a day, with attacks happening every day. Itâ&#x20AC;&#x2122;s an expense businesses canâ&#x20AC;&#x2122;t ignore.â&#x20AC;? â&#x20AC;&#x201D; John Nicholas, professor of computer information systems at the University of Akron

tions in place. But the overwhelming theme among all the victims was that they had no idea this was out there.â&#x20AC;? â&#x20AC;&#x153;Northeast Ohio has really been hit hard by these types of schemes,â&#x20AC;? he added. â&#x20AC;&#x153;They can be really sophisticated, and they tend to focus on small and midsize businesses.â&#x20AC;?

To Flannery, running a business without proper cybersecurity protocols in place (not just insurance itself ) is akin to running a logistics business without having liability insurance on the trucks.

Milan Kosanovich, a Cleveland-based FBI supervisory special agent, said that attacks are, indeed, as prevalent in this market as anywhere else in the world. The fact many hacks and related investigations occur under the public radar means incidents are more prevalent than many realize.

And while many employees donâ&#x20AC;&#x2122;t want to second guess their bosses, and many businesses still wince at the thought of investing in something else that wonâ&#x20AC;&#x2122;t support the top line or otherwise maintain they wonâ&#x20AC;&#x2122;t be targeted by hackers and fraudsters, Kosanovich said itâ&#x20AC;&#x2122;s that thinking â&#x20AC;&#x153;these

Illustration by dane_mark via iStock

achieve cyber protection and a prevailing sense by many that they wonâ&#x20AC;&#x2122;t be victims.

Paul Flannery, founding partner of Flannery | Georgalis LLC and a former U.S. attorney in the Department of Justiceâ&#x20AC;&#x2122;s Cleveland office, recalled prosecuting a case involving a few dozen defendants who were running a bitcoin money laundering scheme from a cell in Youngstown. Many fraudsters work in bitcoin because of the nature of the currency, and will often demand payments in cryptocurrency following a ransomware attack.

One element of the scheme involved targeting law firms while posing as debt collectors or real estate attorneys.

The fraudsters would collect info while pretending they would retain the firms, often sending bogus checks for fees.

Theyâ&#x20AC;&#x2122;d wait around until a big transaction occurs, then message the firms posing as the client saying they changed banks and to redirect closing payments to one of their accounts.

By the time firms caught up with the scheme, the fraudsters had already received their money. â&#x20AC;&#x153;A lot of these people shouldâ&#x20AC;&#x2122;ve never been victimized,â&#x20AC;? Flannery said. â&#x20AC;&#x153;Some of those firms were hit for $500,000, $250,000. They couldâ&#x20AC;&#x2122;ve prevented it if they had the right protec-

people are taking advantage of.â&#x20AC;? â&#x20AC;&#x153;Some of it just comes to businesses taking the opportunity to do a yearly checkup to make sure the right processes are in place and that when under pressure, those protocols hold up,â&#x20AC;? Kosanovich said. â&#x20AC;&#x153;There are still challenges with people recognizing and understanding they may be vulnerable to cyber threats. A lot of people think they donâ&#x20AC;&#x2122;t have personally identifiable info, or that anyone would attack them or their computers,â&#x20AC;? said Bob Sydow, leader of Ernst & Youngâ&#x20AC;&#x2122;s Americas cybersecurity practice. â&#x20AC;&#x153;In this day and age, thatâ&#x20AC;&#x2122;s just sort of naive.â&#x20AC;?

If companies havenâ&#x20AC;&#x2122;t handled vulnerabilities in their systems, â&#x20AC;&#x153;theyâ&#x20AC;&#x2122;ll likely suffer the consequences,â&#x20AC;? he said.

That can be a hard sell, particularly when company boards arenâ&#x20AC;&#x2122;t engaged in the conversation. Many of those folks arenâ&#x20AC;&#x2122;t technical people and may brush off cybersecurity concerns because itâ&#x20AC;&#x2122;s simply not something theyâ&#x20AC;&#x2122;re familiar with or worry about.

But having board buy-in means having the capital supporting the proper initiatives and protections many businesses still lack today. â&#x20AC;&#x153;Equating that investment in cyber to the business risk it reduces,â&#x20AC;? Sydow said, â&#x20AC;&#x153;is paramount.â&#x20AC;?

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

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PA G E 17

CYBERSECURITY

Adviser: Steve Stransky

Strengthen your data mapping in the era of GDPR Between the time the General Data Protection Regulation (GDPR) was approved by the European Union in April 2016 and came into force in May 2018, private sector organizations across the globe have spent billions of dollars on lawyers, consultants, compliance officers and information technology enhancements to ensure that their business practices align with the regulationâ&#x20AC;&#x2122;s requirements.

Given both the importance of data privacy and the fact that the GDPR empowers supervisory authorities to issue significant fines and penalties for certain GDPR violations, compliance with the European legal framework is not â&#x20AC;&#x201D; and should not â&#x20AC;&#x201D; be a one-time exercise. Yet, post-GDPR compliance does not have to be a separate endeavor, and businesses can transition a key aspect of their preparation work â&#x20AC;&#x201D; data mapping â&#x20AC;&#x201D; into the foundation of a broad and continuous compliance regime.

In order to determine the applicability of the GDRP, it logically follows that an organization needs to understand the scope and nature of the information it processes. Accordingly, in preparing for the GDPR, organizations may have already undertaken data mapping efforts to identify who in their organization processes personal data; the types and categories of personal data they process; the methods in which this data is collected; the external and internal parties to whom the data is disseminated; and the physical locations where the data is retained. In other words, data mapping provides an organization with a better understanding of the â&#x20AC;&#x153;who, what, when, where, why and howâ&#x20AC;? of its data processing life cycle.

Consequently, pre-GDPR data mapping efforts will form the foundation for maintaining compliance with what are likely to be some of the GDPRâ&#x20AC;&#x2122;s most highly scrutinized requirements: privacy notifications, the invocation of data privacy rights, record-keeping, data processing agreements and data breach response.

For instance, the GDPR set forth a broad range of requirements governing the content, scope and manner of privacy notifications. More specifically, these provisions require controllers â&#x20AC;&#x201D; the people or businesses who determine the purpose and manner in which personal data is processed â&#x20AC;&#x201D; to notify data subjects on, among other things, the purpose of data processing, the recipients of the personal data, and of their intent to transfer personal data to a third country or international organization. The underlying purpose of these privacy notices is to facilitate fair and transparent data processing and ensure individuals are aware of the risks, rules and safeguards in relation to the processing. An organization should be able to rely upon its data mapping results to provide data subjects with a narrowly tailored privacy notice, which conforms with both the intention and spirit of the GDPR. Separately, the GDPR provide data subjects with several rights related to the collection, processing and retention of their personal information, including the rights of access, rectification, erasure and restriction. The GDPR, however, provides certain exceptions and caveats with regard to these provisions.

Through data mapping, an organization is better prepared to respond to data subjects who invoke their rights under the GDPR because it knows what data is

Stransky is senior counsel in Thompson Hineâ&#x20AC;&#x2122;s business litigation and privacy and cybersecurity practice groups.

in its possession, when it was collected, where it is stored and why it is being retained. Having an accurate and current data map will enable an organization to efficiently and effectively respond to re-

quests or complaints from data subjects, which ultimately will limit any potential liability in this context.

The â&#x20AC;&#x153;records of processing activitiesâ&#x20AC;? clause set forth in the regulation mandates that organizations demonstrate, in writing, compliance with the GDPR. More specifically, under certain circumstances, organizations are required to maintain documentation that memorializes the purposes of their data processing activities; describes the categories of personal data they process; identifies the individuals to whom personal data will be disseminated; and details international data transfers.

Moreover, the regulation provides that these organizations (or their representatives, when applicable), shall make these records available to the supervisory authority, upon request.

The UKâ&#x20AC;&#x2122;s Information Commission Office has not only endorsed data mapping as a method for maintaining compliance, but has recommended that organizations expand their data mapping efforts beyond the â&#x20AC;&#x153;who, what, when, where, why and howâ&#x20AC;? framework, and incorporate into it all GDPR-compliance related issues, such as controller-processor agreements, data protection

impact assessments and records concerning personal data breaches.

To demonstrate compliance with the GDPR, the controller â&#x20AC;&#x153;should adopt internal policies and implement measures which meet in particular the principles of data protection by design and data protection by default.â&#x20AC;? Accordingly, an organizationâ&#x20AC;&#x2122;s data mapping efforts should be leveraged into its day-today internal processes and procedures.

In other words, by maintaining an evolving and accurate map of its personal data, an organization will be building a meaningful and thorough GDPR-compliance program for the future.

ALL GOOD THINGS COME IN THREES

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PA G E 18

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CRAIN’S CLEVELAND BUSINESS

THE LIST

Data Center Companies

Ranked by square feet of data center space in Northeast Ohio

THIS YEAR NAME

LOCAL DATA CENTER SPACE (SQUARE FEET)

LOCAL STAFF (FULL TIME) 5-1-2018

# OF DATA CENTERS LOCAL/ TOTAL

YEAR LOCAL DATA CENTERS OPENED

OTHER OHIO LOCATIONS

TOP LOCAL EXECUTIVE

SERVICES

1

H5 Data Centers 1425 Rockwell Ave., Cleveland 44114 (440) 732-1011/http://h5datacenters.com

184,500 (1)

15

1 12

2013

Cincinnati

Colocation, wholesale, build to suit, turn key data center offerings

Mark Rau, director Jeremy Lavelle, facility manager

2

Expedient 15248 NEO Parkway, Garfield Heights 44128 (216) 373-8500/www.expedient.com

40,000

41

2 11

2007; 2009; 2015

Upper Arlington, Dublin

Infrastructure as a service, cloud services, disaster recovery, colocation; managed services, remote backups, storage area network

David Saliba vice president

3

BlueBridge Networks 1255 Euclid Ave., Cleveland 44115 (216) 621-2583/www.bluebridgenetworks.com

40,000

18

2 5

2004 (Cleveland)

Cleveland, Mayfield Heights, Columbus

Cloud computing, hosting, collocation, migration, managed services, storage, backups, replication and managed security

Kevin J. Goodman managing director, partner

4

LightSpeed Hosting 387 Medina Road, Suite 200, Medina 44256 (888) 929-9639/www.lightspeedhosting.com

33,600

4

2 2

2015 (Medina), 2018 (Valley City)

Valley City

Cloud server, colocation, VoIP, fiber internet, desktop virtualization, mining colocation

Joshua Benjamin Holmes, CEO Mark Hogan, CIO

5

Involta LLC P.O. Box 2133, Akron 44309 (330) 752-7163/www.involta.com

32,100

100

4 15

2001 (Youngstown), 2012, 2016 (Akron), 2017 (Independence)

NA

Colocation, private cloud, hybrid cloud, IT consulting, managed services

Tom Lang data center manager

6

SecureData 365 4726 Hills and Dales Road NW, Canton 44708 (888) 912-3282/www.securedata365.com

28,000 (1)

18

2 2

2009 (Canton); 2015 (Cleveland)

NA

Technology and cloud computing services including colocation, disaster recovery, backup services, managed virtual servers/desktops

Ernie Blood CEO

7

DataBank 1255 Euclid Ave., Suite 200, Cleveland 44115 (800) 840-7533/www.databank.com

20,000

23

1 16

2017

NA

Colocation, connectivity, cloud and hybrid solutions, managed services, compliance and security services

Aaron Noviski senior director

8

vXchnge Cleveland Data Center 200 Prospect Ave., Cleveland 44113 (216) 302-2108/www.vxchnge.com

14,000

10

1 14

2013

NA

Remote hands, roof right access, 24x7x365 onsite techs, compliance certificates, hybrid cloud

Jeff Strogin site manager

9

Mango Bay Internet 1277 E. Schaaf Road, Brooklyn Heights 44131 (216) 335-9255/www.MangoBay.com

5,000

10

1 1

2000

NA

Colocation, cloud servers, web design, hosting, SEO, internet marketing, security, DSL, fiber internet, managed services

Alan "A.J." Jacubenta president, owner

10

Enterprise Data Solutions Inc. 1717 Superior Ave., Cleveland 44114 (216) 781-0575/www.edsi.us.com

3,000

21

1 1

2002

NA

Managed hosting, cloud services, virtual servers, backup, disaster recovery, professional services

Patrick Connor president

11

Bay Pointe Tech Services 2662 Brecksville Road, Richfield 44286 (800) 746-1420/http://baypointetechnology.com

1,500

11

1 1

2013

NA

Infrastructure as a service, disaster recovery, colocation, private and hybrid cloud, flexible space options, managed services

Sheryl L. Wilson president

RESEARCHED BY CHUCK SODER (CSODER@CRAIN.COM)

Want the Excel version of this list Ñ and every other Crain's list? Become a Data Member: CrainsCleveland.com/data Information is supplied by the companies unless footnoted. Data center space totals sometimes include multiple facilities; totals exclude unfinished square feet. Firms with the same amount of square feet are then ranked by number of employees. Send feedback to Chuck Soder: csoder@crain.com. (1) Half of SecureData 365's square footage is attributed to a Cleveland data center it runs within H5's data center.

TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS files a tax lien to protect the interests of the federal government. The lien is a public notice to creditors that the government has a claim against a company’s property. Liens reported here are $10,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.

LIENS FILED JJ Jayne & Company LLC 16496 Falmouth Drive, Strongsville Date filed: April 3, 2018 Type: Federal income taxes Amount: $343,328.55 JJ Babcock, Wasserman & Green Co. LPA 55 Public Square, Suite 700, Cleveland Date filed: March 21, 2018 Type: Corporate income Amount: 175,487.98 JJ Al & Dave’s Place Inc. P.O. Box 37100, Maple Heights Date filed: March 21, 2018 Type: Employer’s withholding, unemployment Amount: $69,690.64 JJ Security Management Group Inc.

3740 Euclid Ave., Cleveland Date filed: March 21, 2018 Type: Unemployment Amount: $60,732.95 JJ One Six Security LLC P.O. Box 5514, Cleveland Date filed: March 27, 2018 Type: Employer’s withholding, unemployment Amount: $46,215.07

JJ Elisaiah Inc. 4756 E. 90th St., Garfield Heights Date filed: March 13, 2018 Type: Corporate income Amount: $45,777.51

JJ Apple Scientific Inc. P.O. Box 746, Chagrin Falls Date filed: March 13, 2018 Type: Failure to file complete return Amount: $13,839.24

JJ Emis LLC 1350 Euclid Ave., Suite 120, Cleveland Date filed: March 27, 2018 Type: Employer’s withholding Amount: $34,241.23

JJ Incredible Kids Childcare & Preschool Center P.O. Box 670308, Northfield Date filed: March 5, 2018 Type: Employer’s withholding, corporate income Amount: $12,887.03

JJ Corbos Bakery Inc. 12210 Mayfield Road, Cleveland Date filed: March 21, 2018 Type: Employer’s withholding Amount: $26,359.44 JJ Industrial Resources Inc.

1205 Brookpark Road, Cleveland Date filed: March 21, 2018 Type: CIVP Amount: $25,394.01 JJ Artistic Renovations of Ohio LLC

479 Elm Court, Seven Hills Date filed: April 13, 2018 Type: Employer’s withholding Amount: $25,134.64 JJ A to Z Auto Services Inc. 13747 State Road, North Royalton Date filed: March 13, 2018 Type: Employer’s withholding Amount: $19,678.36 JJ Maharris Group LLC 17745 Brick Mill Run, Strongsville Date filed: March 29, 2018 Type: Failure to file complete return, corporate income Amount: $17,294.60 JJ K Klass Masonry Inc. 15293 Sandalhaven Drive, Cleveland Date filed: March 13, 2018 Type: Employer’s withholding, unemployment Amount: $15,505.95

JJ Griffin Cleaners on the Move Inc. 3586 Bainbridge Road, Cleveland Heights Date filed: March 13, 2018 Type: Employer’s withholding, unemployment Amount: $12,245.53 JJ Advanced Homecare Professionals Inc. 14077 Cedar Road, Suite 200, Cleveland Date filed: March 13, 2018 Type: Employer’s withholding Amount: $12,179.33

LIENS RELEASED JJ Phillips Electric Co.

4126 St. Clair Ave., Cleveland Date filed: Feb. 8, 2018 Date released: March 21, 2018 Type: Employer’s withholding Amount: $149,669.89 JJ Lakeside Services Inc. P.O. Box 18687, Cleveland Date filed: June 27, 2008 Date released: March 21, 2018 Type: Employer’s withholding, unemployment Amount: $107,666.34

JJ Vocational Training Solutions 14650 Detroit Ave., Lakewood Date filed: July 8, 2008 Date released: March 29, 2018 Type: Employer’s withholding, unemployment Amount: $55,058.57 JJ Adventure Team Racing LLC

5247 Wilson Mills Road, No. 145, Richmond Heights Date filed: July 11, 2012 Date released: April 3, 2018 Type: Employer’s withholding, unemployment Amount: $26,628.26 JJ Accurate Plating Co.

P.O. Box 603277, Cleveland Date filed: Dec. 22, 2008 Date released: Jan. 10, 2018 Type: Corporate income Amount: $21,761.69

JJ Kanz II Inc. 7917 Euclid Ave., Cleveland Date filed: April 28, 2008 Date released: Jan. 10, 2018 Type: Employer’s withholding Amount: $13,969.84 JJ Sharks Seafood & Deli Inc. 3826 Lee Road, Cleveland Date filed: Sept. 21, 2017 Date released: March 13, 2018 Type: Employer’s withholding, corporate income, failure to file complete return Amount: $13,857.06 JJ Rheumatologists LLC 29099 Health Campus Drive, Westlake Date filed: Sept. 11, 2014 Date released: Jan. 30, 2018 Type: Employer’s withholding Amount: $12,109.11

6932 Hillside Road, Independence Date filed: July 20, 2015 Date released: Jan. 30, 2018 Type: Employer’s withholding Amount: $16,998.43

JJ M-Boss Inc. 4510 E. 71st St., Suite 12, Cleveland Date filed: Sept. 14, 2016 Date released: March 5, 2018 Type: Unemployment, employer’s withholding Amount: $11,845.19

JJ Premier Towing 3929 Superior Ave. E., Cleveland Date filed: July 23, 2008 Date released: Jan. 30, 2018 Type: Employer’s withholding, corporate income Amount: $14,683.71

JJ P C Construction Inc. 11931 Nottingham Parkway, North Royalton Date filed: Aug. 18, 2017 Date released: Jan. 10, 2018 Type: Employer’s withholding Amount: $10,373.91

JJ Summer of George Pizza Co. (Romeo’s Pizza) 4346 W. 229th St., Fairview Park Date filed: Sept. 21, 2017 Date released: March 5, 2017 Type: Employer’s withholding Amount: $14,624.07

JJ Medical Care Center LLC 1250 Superior Ave. E., Cleveland Date filed: Nov. 12, 2015 Date released: March 5, 2018 Type: Employer’s withholding Amount: $10,300.56

JJ Livewire Productions Inc.

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

MAYFIELD

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PA G E 19

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CONTINUED FROM PAGE 1

Draft night, while marking the beginning of Mayfieldâ&#x20AC;&#x2122;s career with the Browns, also served as the finale for â&#x20AC;&#x153;Behind Bakerâ&#x20AC;? â&#x20AC;&#x201D; a Facebook Watch series that was shot over three months and chronicled the QBâ&#x20AC;&#x2122;s rise to the top of the draft. The 10 episodes accumulated more than 9 million views in the first seven weeks and are just the start of what Mayfieldâ&#x20AC;&#x2122;s marketing team said will be an extended, behind-the-scenes look at the former University of Oklahoma star. â&#x20AC;&#x153;When we first started working with Baker, we wanted to take him in a different direction,â&#x20AC;? said Lindsey Waterhouse, co-founder of Los Angeles-based boutique firm Waterhouse Hayes. â&#x20AC;&#x153;The path to the NFL draft, NFL diaries â&#x20AC;&#x201D; you see the same cookie-cutter deals. We wanted to do something different because heâ&#x20AC;&#x2122;s such a personality. Behind Baker was the first step in that direction.â&#x20AC;?

Patrick Hayes, Waterhouseâ&#x20AC;&#x2122;s partner at the firm, said another four-part series could follow, and â&#x20AC;&#x153;then weâ&#x20AC;&#x2122;re working on distribution partners for whatâ&#x20AC;&#x2122;s next.â&#x20AC;?

Predraft concerns about Mayfield centered around his 6-foot-1 frame, a 2017 arrest in which he was charged with public intoxication, disorderly conduct, fleeing and resisting arrest, plus on-field incidents in which he tried to plant an Oklahoma flag at midfield of Ohio Stadium and grabbed his crotch during a win over Kansas.

Mayfield convinced the Browns he had learned from his mistakes, but advertisers â&#x20AC;&#x201D; which can be conservative when it comes to the unpredictably of NFL draft picks, multiple analysts told Crainâ&#x20AC;&#x2122;s â&#x20AC;&#x201D; also figured to be a difficult sell. â&#x20AC;&#x153;I think Baker Mayfield has the potential to appeal to advertisers, but brands are likely going to take a waitand-see approach with him due to his various antics on and off the field,â&#x20AC;? said Matt Balvanz, a senior vice president of analytics at Chicago-based Navigate Research.

Waterhouse admits there have been some â&#x20AC;&#x153;mixed reviewsâ&#x20AC;? from potential sponsors, but said Mayfield has the charisma to quickly win them over. â&#x20AC;&#x153;Our biggest thing is getting him in front of the brand,â&#x20AC;? said Waterhouse, whose firm launched in December and has a client list that includes Memphis Grizzlies point guard Mike Conley and former Indianapolis Colts standout Dwight Freeney. â&#x20AC;&#x153;Once people meet him and shake his hand, theyâ&#x20AC;&#x2122;re blown away.â&#x20AC;?

Waterhouse believes the Facebook series showed a â&#x20AC;&#x153;softer sideâ&#x20AC;? of a player who isnâ&#x20AC;&#x2122;t â&#x20AC;&#x153;this arrogant, cocky kid.â&#x20AC;?

Thus far, quite a few sponsors have bought in.

Mayfield and his team have secured endorsements with Nike, Panini America, Leaf Trading Cards, Bose, New Era, PSD and H&H Sports.

Roger A. Breum, the director of marketing for Hookit, a San Diego sponsorship analytics and valuation firm, said Mayfield has generated almost $500,000 in value by promoting Bose seven times this year. Scott Tilton, Hookitâ&#x20AC;&#x2122;s president, said Mayfieldâ&#x20AC;&#x2122;s â&#x20AC;&#x153;very creativeâ&#x20AC;? use of social media is contributing to a profile that is one of the fastest-growing in the NFL.

â&#x20AC;&#x2DC;He will be a superstarâ&#x20AC;&#x2122; In April, the month in which Mayfield became the first QB selected No. 1 overall by the Browns since Tim Couch in 1999, the former Sooner gained 307,000 followers on social media, which easily was the most of any NFL player.

Mayfield has gained more than 638,000 combined followers on Instagram, Twitter and Facebook this

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Baker Mayfield is just the third quarterback selected first overall by the Browns in the NFL draft. (Ken Blaze for Crainâ&#x20AC;&#x2122;s)

year â&#x20AC;&#x201D; nearly two-thirds of his total following of 963,000, as of May 24.

The latter number trails only wide receiver Jarvis Landry (1.71 million combined followers) among all Browns players, and Hookit said the 7.8 million interactions and video views on Mayfieldâ&#x20AC;&#x2122;s social media platforms this year almost equals the 8.2 million tally for the rest of the roster. Mayfieldâ&#x20AC;&#x2122;s 4.4 million interactions in April ranked sixth in the NFL â&#x20AC;&#x201D; one spot ahead of Tom Brady, according to Hookit. â&#x20AC;&#x153;The behind-the-scenes stuff is really good for fostering a deeper connection or a deeper relationship with a fan base,â&#x20AC;? Tilton said.

The buzz resulted in what Waterhouse described as â&#x20AC;&#x153;a lot of one-off offers leading up to the draftâ&#x20AC;? â&#x20AC;&#x201D; social media posts in which Mayfield would get compensated for plugging a brand. â&#x20AC;&#x153;That didnâ&#x20AC;&#x2122;t seem authentic to him,â&#x20AC;? Waterhouse said.

Mayfield, his marketing reps said, wants a long-term fit with a sponsor.

The next potential targets for a rookie of Mayfieldâ&#x20AC;&#x2122;s caliber would be companies in Northeast Ohio, said Steve Rosner, a partner at Rutherford, N.J.-based 16W Marketing who represents such notable broadcasters as Cris Collinsworth, Phil Simms, Boomer Esiason and Howie Long. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;ll probably pick up a couple deals in the market â&#x20AC;&#x201D; maybe some with team sponsors and some independently,â&#x20AC;? Rosner said. â&#x20AC;&#x153;He just has to watch and manage the process to make sure he doesnâ&#x20AC;&#x2122;t bite off more than he can chew.â&#x20AC;?

Twenty of the NFLâ&#x20AC;&#x2122;s 32 teams play in TV marketâ&#x20AC;&#x2122;s larger than Cleveland, according to Nielsenâ&#x20AC;&#x2122;s estimates.

That matters when it comes to an athleteâ&#x20AC;&#x2122;s endorsement portfolio, Hayes, said, but he doesnâ&#x20AC;&#x2122;t believe itâ&#x20AC;&#x2122;s as much of an issue for his client, whom he met when Hayes was a senior and Mayfield a freshman at Oklahoma. â&#x20AC;&#x153;He can show up to a smaller market â&#x20AC;&#x201D; letâ&#x20AC;&#x2122;s say he was drafted by Jacksonville. He would still have the same presence,â&#x20AC;? Hayes said. â&#x20AC;&#x153;He has the look, the personality. He will be a superstar, not just in Cleveland, but we hope in the U.S. and internationally.

Thatâ&#x20AC;&#x2122;s the goal.â&#x20AC;?

A story that sticks Rosner, who represented Lawrence Taylor during the Hall of Fame linebackerâ&#x20AC;&#x2122;s prolific career with the New York Giants, cautions that â&#x20AC;&#x153;to really break out and be an attractive endorsee, either local or national, it starts with the performance on the field.â&#x20AC;?

No one is more aware of that than Mayfield and his reps. â&#x20AC;&#x153;One hundred percent,â&#x20AC;? Hayes said. â&#x20AC;&#x153;You have to have the mindset. You have the name. You also have to perform.â&#x20AC;?

Mayfield and the Browns are entering Week 2 of three weeks of organized team activities, and a mandatory minicamp will follow June 12-14.

After that, there is about a six-week break until the start of training camp. â&#x20AC;&#x153;Right now is a time where a lot of brands make their decisions,â&#x20AC;? said Hayes, whose firm is pursuing deals with beverage, technology, cookware, gaming and health care providers. â&#x20AC;&#x153;But once mid- to late July happens, itâ&#x20AC;&#x2122;s straight football from there.â&#x20AC;?

Mayfield is expected to open the season as the backup to Tyrod Taylor, who was acquired in an offseason trade with the Buffalo Bills. That could slow the rookieâ&#x20AC;&#x2122;s marketing might, but Mayfieldâ&#x20AC;&#x2122;s draft status and a four-year contract that, when signed, should be worth almost $33 million indicate any stay on the bench will be temporary.

And what if this is a big draft-day move the Browns finally got right?

What if Mayfield â&#x20AC;&#x201D; who wants to start his own production company â&#x20AC;&#x201D; is the catalyst behind the long-awaited turnaround of a historic franchise that has spent the majority of the last two decades in the horror genre? â&#x20AC;&#x153;If all the stars align for him, I think heâ&#x20AC;&#x2122;ll be perceived as a Cam Newton-type endorser as a successful QB with a ton of moxie and confidence, and a great willingness to express himself,â&#x20AC;? said Balvanz, the Navigate Research senior vice president of analytics.

Hayes, as is custom for his agency, is thinking about the potential Mayfield story â&#x20AC;&#x201D; from a Texas Tech and Oklahoma walk-on, to Heisman Trophy winner, to hopeful NFL star. â&#x20AC;&#x153;It just resonates with a lot of people,â&#x20AC;? he said.

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AKRON

Financing Akron builds isn’t always easy

N

Big development projects bring challenges, but players are finding ways to get it done

By D

By DAN SHINGLER dshingler@crain.com @DanShingler

If you want to build something in Akron, you may want to learn to make Greek pastry first.

“It’s baklava financing — layer upon layer of financing,” said James Hardy, chief of staff for Akron Mayor Dan Horrigan and someone who works closely with city officials, developers, lenders and others involved in the Rubber City’s redevelopment.

Hardy and others say that development in Akron can be, and often is, a challenge. As a second-tier city, Akron is behind the curve of bigger municipalities, like Cleveland. Larger cities have advanced further in developing their downtowns and attracting urban residents.

One of the challenges that presents, Hardy and developers said, is that many of the projects underway or proposed for Akron are fairly novel to the city. Yes, there was a little development of high-end residential and mixed-use projects in Akron before the Great Recession, but it wasn’t enough to leave behind a critical mass of projects to provide comparable values for appraisals.

That leaves developers trying hard to sell lenders on the future value of their improved buildings, but often without a similar project next door they can point to as evidence.

On top of that, the office-to-residential conversions in vogue now in Akron and other cities are a new animal to lenders.

“Office-to-residential conversations are still a fairly new type of development. ... So they must look at and understand a lot of moving parts in order to be able to underwrite loans for such projects,” said Jerry Fi-

ume, founder and managing director of Akron’s SVN Summit Commercial Real Estate Group.

That doesn’t mean a project won’t get funded, but it can mean it takes more time and work for developers.

“There’s nothing easy about this.

This is not for the faint of heart,” said longtime developer Tony Troppe, who is building his own jazz and arts district near the Akron Art Museum.

“Place-making is a patient process.”

Troppe is known as both a creative developer and a creative financier. But it just might be the creative projects that — though great for the city — are the most difficult to fund, developers say.

“If there’s a struggle in Akron, it’s because we’re trying to push the boundaries of redevelopment,” said Joel Testa, who also has done numerous major developments downtown and has more in the works.

He’s currently working on the $15 million conversion of the former City Center Hotel into affordable apartments, a $7.5 million renovation to his Canal Square lofts and a $5 million expansion of his Northside Marketplace and townhouse development.

Testa said he generally has been able to find financing for his projects, but he still has trouble getting projects appraised with values that will give lenders the confidence to write a check.

“There just are no comps if you’re trying to push the high end of the market … and it’s not the lenders at all. It’s the appraisers, over which the banks have no control,” he said.

It’s holding up major projects, too.

The Law Building, a 210,000-squarefoot, 11-story office building on South Main Street across from the Akron Civic Theater, has plans to become mostly luxury apartments and highend mixed-use space. Developer Tom Rybak said finding financing for the $26 million project has been a hurdle,

Akron’s Landmark Building (the former Akron Savings and Loan Building) is the centerpiece of the Bowery Project. (Dan Shingler)

though, and the last barrier to beginning construction.

Nearby and next to the Civic, the long-awaited Bowery Project — central to the city’s vision of revitalizing perhaps one of the most important sections of downtown — has been wrangling with financing since it was unveiled in 2016. The plan is to develop six vacant buildings into about 100 apartments and 50,000 square feet of mixed-use and retail space.

The about $40 million project involves some of the biggest names in local development, such as North

Canton-based DeHoff Development and Fairlawn-based Welty Building Co. But even it has had trouble getting backing.

Today, it’s working toward completing its financing package, but it’s been a good example of how local governments, developers and others have worked together to bake the baklava to which Hardy referred.

It reportedly has received about $14 million in loans, some with help from the Summit County Development Financing Authority, a $1.85 million loan backed by the city, about

$10 million in state and federal tax credits and about $800,000 in grants from the Summit County Land Bank and the city.

Meanwhile, the ground keeps shifting on it and other urban developments, as federal authorities change how things like New Market Tax Credits can be used, said Chris Burnham, president of the Summit County Development Finance Authority. The feds now want those tax credits to go toward owner-occupied developments, but very few urban, mixed-use developments are in that category, he said.

“That’s a big challenge for the second-tier cities. … Cities like Cleveland and Cincinnati have used it.

Now the program has kind of moved away just when Akron needs it, Youngstown needs it and Canton needs it,” Burnham said.

Nonetheless, he and local officials continue to look for — and find — ways to finance things like the Bowery Project.

Hardy said the city is doing everything it can to get that particular project financed, because it’s in such an important part of downtown and officials think it’s the key to financing further development.

“That project is the psychological next step we need, I think and we all believe, in terms of sparking the confidence for everything else that will come after it,” Hardy said.

Testa said that the Bowery and other projects exemplify a newfound spirit on the part of local governments to plan and work with developers — something he said makes realities out of developments that would not otherwise be possible.

“They bring a lot of benefit to the table. I would say between the city and the county and the Development Finance Authority, between those three entities, there are enough people who understand creative financing and how to make a deal work that they have the capacity to get things done,” Testa said.

SEE FINANCE, PAGE 21

Wayne Savings wins a second proxy contest

By JEREMY NOBILE jnobile@crain.com @JeremyNobile

After its second proxy contest in a row, it’s Wayne Savings Community Bank with two wins and The Stilwell Group with zero.

Shareholders of the Woosterbased bank of about $440 million in assets and 11 offices in and around Wayne County, operated by parent company Wayne Savings Bancshares Inc., opted to retain 71-year-old incumbent Wayne board member and former interim CEO David Lehman instead of replacing him with Corissa Briglia, a 31-year-old director of research for The Stilwell Group — a New York-based hedge fund that owns about 9.6% of the bank, making it Wayne’s largest stockholder.

Stilwell initiated the proxy contest encouraging shareholders to elect Briglia over Lehman. The ultimate purpose of that effort was to inject some fresh blood into the bank’s board, specifically someone interested in seeing the bank pursue a sale.

It’s a regular move for Stilwell, which is known in the banking sector for

being an activist investor.

The bank’s annual meeting was in late April. Using rounded figures, Wayne president and CEO James VanSickle II said Lehman collected about 55% of the votes vs. Briglia’s 43%.

It’s a better spread than the contest in 2017, when Wayne retained its board member after edging out Stilwell’s candidate by barely 1% more votes.

“We were hoping for a double-digit win (this year) and were pleasantly surprised,” VanSickle said.

For the last two years, Stilwell has said that the bank’s growth and performance have been unsatisfactory.

Stilwell feels the bank should pursue a sale in the interest of shareholder value and has even accused the bank’s current board of not just refusing to explore a sale, but actively ignoring interested buyers.

The bank disputes this, of course, and has said it has New York investment bank Sandler O’Neill and Partners on retainer.

Today’s leaders of the bank — which was founded in 1899 — have outwardly expressed little interest in selling, but maintain the bank has performed well and that there’s still plenty of value to be had in continu-

ing to run it independently.

Amid pressures to improve bank profitability, Wayne saw longtime CEO Stewart Fitz Gibbons resign in December 2016.

VanSickle After that, Lehman, a board member, took an interim CEO role. That’s about the time Stilwell initiated its first proxy contest, which it lost last spring. After that, Stilwell vowed to “be back next year” with another proxy battle if the bank wasn’t sold or improved.

Lehman stayed on as interim CEO until VanSickle was hired as the permanent CEO last summer.

Since then, the bank’s return on equity and dividends have increased.

After VanSickle joined, the bank converted its charter from a stock savings and loan association to an Ohio-chartered commercial bank shortly after. Doing that removes requirements for the bank to have 65% of its loan portfolio in residential mortgages and allows it to rework its portfolio with a greater focus on

more commercial loans with higher yields.

That move is a key factor in the bank’s growth strategy.

Last fall, the bank delisted from NASDAQ and began trading on OTCQX, which should translate to significant cost savings.

Earnings per share increased in 2017 by 37.8%. Following record earnings growth in the first quarter, the bank saw its return on equity hit 10% for the first time ever. (That’s excluding costs related to the proxy contest, though, which VanSickle said would be discussed more publicly following second-quarter earnings.)

The bank leaned on that kind of performance when contacting shareholders this year to encourage their support.

VanSickle estimates he had been in contact with some 500 shareholders, including nearly 100 in-person interactions. Some of those involved walking door to door at homes in Wayne County.

“We started early with our grassroots approach,” VanSickle said, adding it’s easier to garner support with “three consecutive quarters of record

earnings.”

VanSickle said that while there have been disagreements over what to do with the bank between its current board and Stilwell, the relationship remains cordial.

Meanwhile, although the hedge fund indicated the same thing, it was coy about whether it would initiate another proxy fight in the future.

“As (the bank’s) largest shareholder, we only wish the company well,” said Stilwell spokeswoman Megan Parisi.

“We still think the board should have had discussions with institutions that were interested in buying (it). Will we run another contest next year? When the time comes, we will do what we believe maximizes shareholder value.”

VanSickle has every expectation that shareholders will be satisfied, though.

“We are really looking forward to the rest of 2018 and we think, hopefully, our shareholders will be as excited as we progress further through the year,” he said. “We think we are on the right track, and there’s nothing that would lead us to believe we can’t maintain that momentum.”

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CRAIN’S CLEVELAND BUSINESS

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M AY 2 8 - J U N E 3 , 2 018

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PA G E 21

AKRON

New market planned for Northside

FINANCE

By DAN SHINGLER

He and others agree that Akron appears to be on the cusp of becoming a place that lenders seek out rather than a place to which they must be lured. It’s a matter of critical mass, they said, as each development supports the others around it, as population builds and market forces begin to push aside government agencies who are all too willing to get out of the way.

“As (banks) begin to see the value of urban lending, they can not only be part of the solution, but they can hedge their bets,” Troppe said, noting that he already sees some improvements in terms of financing projects.

He said smaller local lenders, such as Cortland Bank and First Commonwealth Bank, have been willing lenders, but now more banks are beginning to gain experience and comfort with lending for urban renewal projects. On top of that, they’re beginning to see that urban tenants are paying some of the highest rents.

“I’m certainly sensing that more and more lenders are familiar with urban environments that have come back, and that they’re actually realizing some of the highest rents in the region,” Troppe said.

The hope is that more lending will lead to more loans underwritten. And more banks are attracted to Akron, especially smaller banks that are hungry for loans and prefer to lend locally.

“We’re only planning to get more aggressive in Akron, not less,” said Jim Castrigano, vice president of commercial lending at $1.6 billion Civista Bank, headquartered in Sandusky but with offices in Akron and Mayfield Heights.

Ultimately, it will be up to Akron’s developers to make the city a success. Castrigano, Burnham and others say that whether in Akron or any other city, lenders ultimately lend based on the merit of a project and the people behind it.

“It all depends on the project. That includes not only things like the value of the building, market studies and comparable values, but the track record of the developer,” Fiume said.

But at least, local developers sat, it’s starting to become easier to get lenders to at least look at projects in Akron.

dshingler@crain.com @DanShingler

Smart farmers don’t brag about their crops at the start of the season, but the forecast is looking good for a new produce and local food market to open year-round in Akron.

Peninsula-based Cuyahoga Valley Countryside Conservancy and developer Joel Testa are working to open a market beneath the existing Northside Marketplace, located just off North Howard Street in the Northside District.

Conservancy executive director Tracy Emrick said the lease was still being reviewed last week. But she said the conservancy board has unanimously approved the plan and she’s eager to move forward.

“If a market is the sign of a great city, Akron’s fortunate, because it’s getting one,” Emrick said. “It’s really exciting for us. We’re really tickled about it.”

The nonprofit holds outdoor farmers markets in season at Will Christy Park near Highland Square and in Peninsula. In the winter, it operates an indoor market in Bath.

Those steadily have been growing in sales and attendance as more people embrace healthier foods and locally grown items, Emrick said.

But the indoor space the new market is expected to occupy would enable it to be open year-round and offer produce and value-added food products like those found in local markets in other major cities. Ideally, it will become Akron’s version of Cleveland’s West Side Market or the North Market in Columbus, Emrick said, even if it never becomes quite as large as those.

“We do farmers markets and, we’ve been in that business for about 20 years. … We operate three really fantastic farmers markets, but this particular project is really going to take the farmers market concept to the next level,” Emrick said.

A date for the market’s opening hasn’t been set, but Countryside wants to take full advantage of the coming growing season, according to Emrick.

The Cuyahoga Valley Countryside Conservancy already operates three seasonal farmers markets. The planned market for Akron’s Northside District is expected to be open year-round and offer fresh produce and local food items. (File photo)

“It will definitely be open this year — and soon,” she said.

Open all year doesn’t mean open all the time, though. Like similar markets, the new space plans to be open only certain days of the week, probably Saturday and Sunday, Emrick said.

That’s a model that’s been successful in other cities for decades. It’s also one that still provides downtown residents a chance to do regular shopping while providing a place for established food makers in the city to open a second site to increase their exposure, Emrick said.

The project has strong local backing. Prominent Akron grocer Phil Nabors, who owns the Mustard Seed Market & Cafe, a big driver of the local and sustainable food movement, is extremely supportive, Emrick said.

“He’d better be. He’s one of our board members and he voted for it, too,” she said with a chuckle.

Nabors confirmed he’s fully on board.

“I indeed seconded the motion and voted yay, and the motion passed unanimously,” Nabors said.

Testa said he’s working with Emrick’s group to help develop about

10,000 square feet of space beneath the Northside Marketplace, which serves as an incubator for new and niche retailers in Akron.

Testa said he thinks the space can accommodate between 50 and 60 vendors. Because it’s in a parking garage, it also can do some things that most indoor markets can’t, he said.

“It has a carbon-monoxide evacuation system. That gives us the ability to bring food trucks in, so we could basically have street festivals, indoors,” Testa said.

Emrick said they’ve yet to start recruiting or accepting tenants. The new market doesn’t even have a name yet and came together quickly over about a two-month period, she added.

Testa said he’s convinced that finding vendors to occupy the market will not be a problem.

He already has 80 vendors on a waiting list for space in the retail market upstairs and thinks that demand will carry over to the new food market as well, he said.

Those who support the continued redevelopment and repopulation of downtown say the planned market will be a welcome addition and an important advance in making down-

town more livable.

Right now, the about 2,600 downtown residents often have to travel to do their grocery shopping, said Suzie Graham, president of the Downtown Akron Partnership. There are drugstores, convenience stores and others with some food items, but nothing like a full grocery store and certainly nothing like Cleveland’s West Side Market with its array of food.

Graham gives Countryside’s existing markets high marks for their organization and selection of local foods and providers.

The timing is perfect to establish something like the planned market, because the downtown population is growing and more visitors are coming, too, thanks to improvements to the Towpath Trail, increased traffic on the Cuyahoga Valley Scenic Railroad (which has a nearby station) and hotels beginning to open in the city. All of that is within easy walking distance to the Northside site, she noted.

“What’s exciting about this initiative is that the geography ties into hotel guests, it ties into people using the Towpath Trail and it ties into new residences at the Northside area. …

Those three audiences are already readily available,” Graham said.

Countryside hopes to take advantage of all of that, as well as the projected growth of downtown’s population.

“There’s a lot of residential coming up, and they’re going to need a place to go get something to eat,” Emrick said.

What’s more, Emrick and Graham said, the market is likely a good fit for downtown’s growing population, which tends to lean toward millennials and other younger residents who are attuned to new food trends, not the least of which is an emphasis on locally grown and sustainable products.

Plus, the younger set doesn’t like to drive as much as previous generations.

“Local food is a booming industry right now. Especially with people who work in the health fields, and downtown has a lot of those,” Emrick said.

CONTINUED FROM PAGE 20

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LAKE HEALTH CONTINUED FROM PAGE 1

The system is aiming for a 1% operating margin in 2018, which would equate to a $3.5 million to $4 million operating income, Tracz said. To achieve this, Lake is looking at its supply side, health care benefits and revenue cycle improvements, he said.

This month, Moody’s downgraded Lake Health from A3 to Baa1 and revised the outlook from negative to stable. Moody’s said that the system’s margins “will likely improve but remain lower than historical levels given labor cost and payer pressures.” Following the 2017 budget shortfall, these pressures will “challenge the hospital to return to historical margins.”

As Lake Health’s credit strengths, Moody’s cited strong liquidity, a defined contribution pension plan and moderate operating leases and the system’s leading market share.

Despite Cleveland Clinic and Uni-

CRAIN’S CLEVELAND BUSINESS

versity Hospitals dominating the Northeast Ohio health care scene overall, Lake Health still enjoys a 52.9% market share in Lake County as the only hospital provider there. According to Moody’s, the system’s growth and physician alignment strategies “will continue to support a leading market position in a very competitive region.”

Lake Health is also embarking on a new venture with a group of independent physicians constructing a specialty, acute care hospital in Beachwood. Lake has a 51% controlling ownership interest in the project, which is a 69,800-squarefoot hospital with 25 patient beds, operating and procedure rooms, emergency room services, diagnostic services and physical therapy.

The move expands Lake Health’s geography and creates another access point for the system, said Cicero.

“As we’re working closely with the payers and with employers, a location for us in Cuyahoga County becomes a critical addition to a network within

Lake Health is working with independent physicians to construct an acute care hospital in Beachwood.

(Contributed rendering)

our clinically integrated network,” he said. “It aligns us with a whole new group of surgeons that historically did not work at Lake Health. And it really becomes that opportunity in that kind of setting to help to continue to develop a high-quality, lower-cost option in the market.”

Moody’s notes that the project, if successful, could generate profitable business for Lake Health, but it may bring startup risks depending on the pace of the ramp-up.

Given costs, competition and changing reimbursement models, maintaining independence can be

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challenging, which makes it all the more important to collaborate with other players, said Tom Campanella, director of the health care MBA program at Baldwin Wallace University.

This new hospital is an example of such collaboration.

“On paper, in theory, it could be successful,” he said. “But like anything else, theory is great, paper is great, but it really is how it’s actually put together.

Do they have the right type of physicians? Are they able to meet the needs of the market? Are they able to successfully get their message out to the market, both to employers as well as to con-

To place your listing or for more information, please call Debora Stein at (212) 210-0274 or email dstein@crain.com

Mark F Fazio Partner

Porter Wright Morris & Arthur Fazio, a partner in the firm’s Corporate Department, is based out of the firm’s Cleveland and Pittsburgh offices. As an accomplished business lawyer, he brings strong experience representing clients on a wide array of corporate and business law matters. He represents buyers and sellers in all aspects of various business transactions in a variety of industries, including manufacturing, healthcare, technology, software, agriculture, retail and restaurants.

MBA

WEATHERHEAD SCHOOL OF MANAGEMENT

www.crainscleveland.com/onthemove

LAW

sumers and insurance companies that they have something that may be different out there in the marketplace …

It’s not like field of dreams if you build it, they will come. You need to be able to know your market and find a way to make sure that, like in any industry, that you have something that is potentially attractive to the marketplace.”

Lake Health also has been seeing “nice growth” in its Perrico Health Campus in Willoughby, which opened last year, and its Mentor Wellness Campus, which opened in January, Cicero said.

The other area of growth Lake has seen has been in its physician recruitment. The system has been adding 15 to 20 physicians a year.

“The bottom line is Lake has a strong reputation, and they do have historically a good relationship with independent physicians,” Campanella said.

“And I think they position themselves to — based on that — to be potentially successful in the new marketplace that we’re seeing out there in health care.”

weatherhead.case.edu

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INSURANCE

Dana Marie DeCapite

Ann E. Knuth

Partner

Of Counsel

Hahn Loeser & Parks LLP

Hahn Loeser & Parks LLP

DeCapite recently joined Hahn Loeser’s Business Practice Area as a partner and dedicates her practice to estate planning, business succession planning, asset protection planning, prenuptial planning and estate and trust administration. She also counsels individuals and fiduciaries on the duties and obligations of trustees, executors and attorneys-infact. She earned her B.S. in Business from Miami University and her Juris Doctor from The John Marshall Law School.

Knuth recently joined Hahn Loeser’s Labor & Employment practice as an attorney Of Counsel and has over 20 years’ experience in labor and employment law. She guides employers through the employment relationship and has counseled businesses of all sizes to help them manage their workforce and meet their business goals. She earned her B.S. from the State University of New York, her MBA, from Grand Valley State University and her Juris Doctor from Case Western Reserve School of Law.

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Sarah Lewis

Gregory A. Thompson

Associate

Associate

Hahn Loeser & Parks LLP

Hahn Loeser & Parks LLP

Lewis joined Hahn Loeser’s Litigation Area and represents clients in complex commercial and business disputes. She handles cases at all stages of litigation, including drafting pleadings, researching and drafting dispositive motions and briefs, and engaging in and managing discovery. Lewis received her B.A. in Political Science and Spanish, summa cum laude from Youngstown State University and her Juris Doctor cum laude from Northwestern Pritzker School of Law.

Thompson joined Hahn Loeser’s Litigation Area as an associate and brings with him extensive first-chair experience handling various aspects of commercial litigation, including non-compete disputes; shareholder, fiduciary and business tort litigation; probate litigation; UCC contract disputes and real estate litigation. Thompson earned his B.B.A, cum laude, from Ohio University and received his Juris Doctor, magna cum laude, from the University of Akron School of Law.

Leslie Berzansky Area Director of Marketing

Gallagher Leslie Berzansky has been promoted to Area Director of Marketing at Gallagher. In her new role, she will lead the Ohio marketing team and is responsible for development and execution of the statewide marketing strategy. Leslie, a graduate of The Ohio State University, joined Gallagher in 2016 and brings more than 17 years of marketing and communications experience to the role, 12 of which are in the insurance industry.

HEALTH CARE

KNOW SOMEONE ON THE MOVE? For more information or questions regarding advertising in this section, please call Debora Stein at (212) 210-0274 or email: dstein@crain.com

Edgar Miranda Liberty Valley Market President

Cigna Edgar Miranda has been named market president for Cigna’s health care and related benefits plans in its Liberty Valley market, which includes the states of Delaware, Ohio, Pennsylvania, and West Virginia. Miranda’s responsibilities include driving market growth by creating customer value and ensuring that the local market strategy and product and network offerings meet evolving customer and client needs.

Previously, Miranda was senior vice president of operations in Cigna’s NY/NJ market.

CRAIN’S CLEVELAND BUSINESS

Source Lunch

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Anne Trubek

Publisher, Belt Publishing Belt Publishing and Anne Trubek are working to share the stories of the rust belt with the rest of the world. ¶ Trubek is the founder of Belt Publishing and Belt Magazine. She’s still on the board of the latter, but it’s the former that takes up the bulk of her time lately. And Trubek is the editor of a recently published book of essays, “Voices From the Rust Belt,” which highlights work previously published by Belt. ¶ In addition to its own books and some new self-publishing services, Belt Publishing is this year launching reprints of “unjustly forgotten Midwestern novels and nonfiction,” Trubek said, by authors like Sherwood Anderson and Ida Tarbell who would be of interest to today’s readers. ¶ “My dissertation was on late 19th-early 20th century American literature — I know all these books because I read them in graduate school. So it’s so much fun,” Trubek said. — Rachel Abbey McCafferty

Five things Thrift shopping as a hobby Trubek started out searching thrift stores and flea markets for valuable, old books to flip, but now she lets herself seek out anything that catches her eye. She likes the search, but also the research that goes into her finds when she gets home.

Good find What she called a “gorgeous” photo of San Francisco from the 1890s that she bought for $5 and sold for $1,000.

Favorite Northeast Ohio spots The Cleveland Museum of Art, Severance Hall and the Velvet Tango Room

Book she loved as a kid “The Phantom Tollbooth,” by Norton Juster

What she wanted to be when she grew up A writer

Lunch spot Beviamo Cafe 2275 Professor Ave., Cleveland www.beviamocafe.com 216-202-2300

The meal Two Princess Pesto sandwiches — one on toast and one on a bagel — along with one Red smoothie and one Power Up smoothie.

The vibe The cafe has the relaxed atmosphere of a trendy coffee shop, but the all-vegan menu gives plenty of options for breakfast or lunch.

The bill $26.00, plus tip

What do you think people outside of this area miss about Belt and what you’re trying to do?

This idea that Belt is defined by Trump is such a sad thing that I have to say is the answer. Right now, that’s what people are misunderstanding.

Why do you think it is so important to have local writers telling these local stories?

The more knowledge, the better, right? The more understanding, the better. So that’s just obvious. That people are able to do better work if they know a topic better. Also, there are so many great writers in the region who haven’t had the opportunity, necessarily.

What are some of your favorite pieces you’ve gotten to be part of?

You know, doing the city anthologies are so gratifying because so many people contribute to them, and it is so meaningful to them that they’re able to get that essay about their hometown in a book. You go to the launch parties, I’m always crying at every launch party, like the families are so excited, the friends, the writers: it’s just — it’s what keeps me going, you know, when times are tough, those anthologies always keep me going. ... For the magazine, we’ve done some great Cleveland history that I’m really proud of. Brad Ricca did an incredible piece about Chief Wahoo like three years ago, maybe four. We’ve done some great deep dives. I love history, and I think that there’s so much great Cleveland history that hasn’t been told or hasn’t been told recently, and being able to do really long, in-depth, deep articles, again, I just feel like, “OK. I know what I did today was good work.”

higher-paying assignments. There was a part of me that I didn’t realize, you know, subconsciously, that really enjoyed that. When I was at Oberlin, I started a nonprofit, I started programs. I like to start new things.

What are some lessons you learned quickly when you realized this was going to be a business, not just a project?

The cycle of up and down, boom and bust, whatever you want to call it. In the beginning, I would just panic, like full-out panic. I mean, it was just horrible. We were on the verge of closing down probably, you know, six times. And now I’m able to ride those easier because I know that there are cycles. The other thing I learned really quickly is that what I really wanted all along in a lot of ways it turns out was to have a community. That was really important to me. And I probably underestimated how much I was always going to be in charge. No matter how collaborative you want to set something up, there’s someone in charge and then people aren’t in charge. And I used to bring in the people working, staff, whatever you want to call them, to everything. And so that means they got brought into my panic. And very early, I had to learn that I couldn’t do that.

Had you ever owned a business before?

No.

“Voices From the Rust Belt” — what was the goal behind that book and how did it all come about?

Basically, there was a great New York Times profile about one of our books that came out a month after the presidential election on the front page of the arts section. And a publisher from Picador read it and called me up, and he wanted to talk about different things that we could possibly do together. And the one that we settled on was doing this book. I think from Picador’s perspective, suddenly the Rust Belt was more interesting, marketable.

This just seems like it happened because you had a really good idea that took off.

Yeah, I mean, I had shifted from being a tenured faculty member, which is the least entrepreneurial thing in the world, to freelancing, which is very entrepreneurial. So in a sense, I had run a business because for a while — I was a full-time freelancer. And I knew I liked it. I liked the thrill of the chase. I liked trying to get assignments. I liked trying to get

Did you have any idea that Belt was going to grow to what it is today when you started this?

No. You know, I thought I could make a go of it. Just in terms of Belt overall, I said, three to five years. I think I can leave and make a go of it. I had no idea how hard it was going to be. And I was not a young, naive 20-something, you know? I was a middle-aged woman with a kid and a mortgage. Now, I’m just really proud that we’re still around.

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