AMPLIFY 2013 TABLE OF CONTENTS 1 Our Mission 2 A message to our members, partners and the Greater Cleveland community 4 Advocacy: Key legislation advanced, support helps pass four levies 8 Economic Development: Strong results drive investments, create jobs 18 Physical Development: New fund capitalized; targeted investment advances catalytic projects 22 Economic Inclusion: Focus on member engagement, advancing community benefits agreement 28 Education Reform: Efforts aim to transform schools, improve outcomes 32 Membership 34 COSE: Empowering small business success 38 2013 Board of Directors 40 Looking Ahead 41 GCP Staff Leadership OUR MISSION To mobilize privatesector leadership, expertise and resources to create attractive business conditions that create jobs, grow investment and improve the economic prosperity of the region. 1 To our members, partners and the Greater Cleveland community The story of Greater Cleveland’s ongoing transformation just keeps getting better. This past year was packed with progress, good news and momentum that is continuing in 2014, and the Greater Cleveland Partnership is committed to continue playing a significant role on behalf of the business community. Highlights that impacted our community and our organization include: Opportunity Corridor received 100 percent funding from the State of Ohio. The announcement made last July accelerated the $324 million project, which will provide a much-needed connectivity between University Circle and I-490 at East 55th Street. It will serve as a catalyst for economic and community development in nearby communities by transforming more than 300 acres of underutilized land into vital, neighborhood assets while improving access to jobs, education and culture located in University Circle. We appreciate the leadership of GCP Board members Terrence Egger and James Ireland who, as co-chairs of the Opportunity Corridor Steering Committee, helped keep the project on track and move it forward. Meaningful, positive steps were taken by the GCP, the City of Cleveland, Cuyahoga County and others to advance the redesign of Public Square and develop Cleveland’s waterfront and connect it to downtown. After decades of discussion, we’re taking action to make the Group Plan a reality. In 2014, dramatic changes will begin to take shape as we break ground to reshape and revitalize Public Square. In addition, a developer has come on board to bring our lakefront connectivity and development plans to fruition. Cleveland DevelopmentAdvisors(CDA)attractedanadditional $30 million for real estate investment. As announced at our 2013 Annual Meeting, CDA, the GCP’s real estate development affiliate, capitalized the Advance Cleveland Development Fund through the support of GCP-member companies. The Fund will be used to invest in expanding our waterfront and building downtown housing, which is a very hot commodity. Since 1990, CDA has invested more than $200 million in catalytic projects worth nearly $3 billion. 2 Four levies, for which the GCP mobilized business community support, were passed by the voters. Each of them — Health and Human Services, Port Authority, Cleveland Public Library and the Cleveland Metroparks — is connected to our community’s well-being and economic development. GCP coordinated fund-raising for the levies’ campaigns and helped communicate key messaging to voters about the importance of all four ballot issues to Greater Cleveland’s future. The GCP led efforts to secure legislation in the Ohio General Assembly that allowed Cuyahoga County to place a “sin tax” extension on the May 2014 ballot. Subsequent approval by voters provided funds to finance major improvements and repairs on Cleveland’s three professional sports facilities. An historic Community Benefits Agreement memorandum of understanding (MOU), promoting inclusion in City of Cleveland construction projects, was signed by the city and business, civic, labor, and trade organizations. The publicprivate agreement is focused on creating opportunities for Clevelanders and Cleveland companies to directly participate in the city’s economic success. In September, 10 public- and private-sector project owners added their endorsement of the effort. The Commission on Economic Inclusion, a program of the GCP, began working to ensure implementation of the MOU’s directives. The new Cleveland Convention Center opened with a highly successful GCP Annual Meeting as its first public event. Thanks to our members whose sponsorship support resulted in our largest meeting of members to date. The new facility allowed us to deliver the desired “wow” factor and provided a visually impressive stage for our discussion about waterfront development with Mayor Frank Jackson and County Executive Ed FitzGerald. The GCP Business Development Team’s outreach to the region’s companies resulted in an estimated $171 million capital investment. The team’s work also led to 1,366 jobs retained and 1,334 jobs created. With assistance of the GCP, the Cleveland Transformation Alliance began its work to ensure fidelity to the Cleveland Plan to improve public education outcomes in the City of Cleveland. Our in-kind support includes providing office and conference room space in the GCP offices, IT services as well as promoting the “Right School, Right Now” campaign through our marketing and communications vehicles. GCP augmented its support of the region’s middle-market companies by providing additional programming and resources. This includes offering middle-market events that tackled topics impacting company growth such as innovation, healthcare costs, and talent retention; launching an online knowledge center with the latest middle-market research, data, and best practices; and providing customized business retention and expansion assistance. GCP continued to play a leadership role with regional philanthropy and other metro chambers to design a more comprehensive and effective economic development system, known as the Regional Economic Competitive Strategy (RECS). The system will coordinate region-wide activities such as retention and expansion, early stage start-ups and advocacy. You can read more about these and other highlights in this report. Clearly, there’s much to be proud of, but the work continues. Our agenda includes: • Helping determine the feasibility of seeking to bring either the Democratic or Republican national convention to Cleveland in 2016; • Maximizing the neighborhood development component of Opportunity Corridor, which can change significant portions of Cleveland’s East Side; and • Continuing to assist the Cleveland Metropolitan School District (CMSD) in establishment of advisory boards for individual schools and providing input/ guidance on continuation and growth of the Transformation Alliance. We appreciate the leadership of our Board and the support of our members, which makes the work that we do possible. We look forward to continuing our role as a catalyst, participant, convener, or leader in the next chapter of Cleveland’s 21st century transformation. An investment by Medical Mutual provided support for the strategic realignment of COSE, our small business partner. As it observed its 40th anniversary, COSE is well-positioned to take charge and fight for small business rights throughout our region, the state and across the nation. Christopher M. Connor Chairman, Greater Cleveland Partnership Chairman and Chief Executive Officer, The Sherwin-Williams Company Joseph D. Roman President and CEO Greater Cleveland Partnership 3 Advocacy: Key legislation advanced, support helps pass four levies The Greater Cleveland Partnership’s Government Advocacy Team, partners in the chamber and civic worlds, and with the engagement of our members, helped advance key legislation in Columbus and Washington and helped win voter approval of four local levies. The year also featured two major celebrations that attracted record-breaking attendance. 4 5 ADVOCACY Language in federal legislation ensures support for the Great Lakes Working with our colleagues in the Great Lakes Metro Chambers Coalition, the GCP secured language in federal legislation that recognizes the Great Lakes as one entity rather than individual lakes and river. This is advantageous for federal funding and in creating more awareness of the region in terms of economic development and commerce. These efforts will also produce important funding for dredging in the Great Lakes, which is important to the flow of maritime commerce. Legislation is poised for approval in 2014. Efforts secure New Markets Tax Credits for catalytic development GCP advocacy efforts resulted in Cleveland Development Advisors being awarded a $30 million New Markets Tax Credit Allocation. This allocation will be utilized for catalytic development projects within Cuyahoga County. GCP and other Ohio business groups back Medicaid expansion proposal The GCP joined other business organizations in supporting Governor Kasich’s proposal to expand the Medicaid program in Ohio, thereby bringing healthcare coverage to thousands more Ohioans. GCP takes lead in ensuring Turnpike revenues stay in northern Ohio The GCP led efforts to secure legislation that guarantees that 90 percent of the revenue from the sale of bonds from the Ohio Turnpike will stay in northern Ohio. This paved the way for full funding of the Opportunity Corridor and will benefit other transportation projects important to Northeast Ohio. GCP push in Columbus helps place “sin tax” issue on county ballot The GCP led efforts to secure legislation in the Ohio General Assembly that allowed Cuyahoga County to place a ballot measure before voters that extends the current “sin tax” that supports maintenance of our major league sports facilities. Two celebrations attract record crowds The 2013 Annual Meeting for Build Up Greater Cleveland (BUGC) drew a record crowd of more than 200 GCP members, elected officials and BUGC members. It featured Congressman Bill Shuster, chairman of the U.S. House Transportation Committee, as the keynote speaker, and a presentation by Congressman Bob Gibbs, Ohio’s only member on that committee. The GCP also hosted the 50th annual Public Officials Reception and Reunion that featured 13 honorees from the past, including Governors Richard Celeste and George Voinovich, former members of Congress, leaders from the Ohio General Assembly, the City of Cleveland and Cuyahoga County. By a significant margin, this was the best attended Public Officials Reception in its 50-year history. Four local levies pass with GCP support Four local levies supported by the GCP were approved by voters. The levies will provide funding for Cleveland Metroparks, the Cleveland-Cuyahoga County Port Authority, Cleveland Public Library, and Cuyahoga County health and human services. In November 2013, four local levies supported by GCP were approved by voters. 6 Thirteen former elected officials participated in a panel discussion moderated by retired Plain Dealer columnist Brent Larkin to kick off GCP’s 50th anniversary Public Officials Reunion and Reception: Former U.S. Senator and Governor George Voinovich; former members of Congress David Hobson, Steve LaTourette, Mary Rose Oakar and Louis Stokes; former Governor Richard Celeste; former Ohio Senate President Stanley Aronoff; former Ohio House Speaker Jo Ann Davidson; former Ohio Senate President Richard Finan; former State Rep. and Cleveland Mayor Jane Campbell; former County Commissioner Timothy Hagan; former Cleveland City Council President George Forbes; and former State Senator Patrick Sweeney. 7 Economic Development: Strong results drive investment, create jobs The organizations in the regional economic development system that the Greater Cleveland Partnership helped create and continues to support — BioEnterprise, JumpStart, MAGNET, NorTech and Team NEO, and the Regional Marketing Alliance — along with GCP’s Business Development Team — report strong results in 2013 as evidenced by job creation and the attraction of new investment. Early-stage companies in a variety of sectors experienced growth, while several mature businesses completed expansion projects totaling more than $197 million in capital investment. 8 9 ECONOMIC DEVELOPMENT Business expansion, retention activities drive strong results The Greater Cleveland Partnership Business Development Team, in collaboration with its partners, continued its award-winning activities from previous years and ended 2013 with strong results. The team successfully closed 16 retention and expansion projects and developed a pipeline of 37 projects with $252 million in capital investment for 2014. In addition, GCP and its Northeast Ohio regional economic development partners, the Greater Akron Chamber, Stark Development Board, Team Lorain County, and the Youngstown/Warren Regional Chamber received top honors for excellence in economic development marketing from the Ohio Economic Development Association. The group was honored for “COLLABOR18,” a strategic marketing communication booklet representing local economic development organizations in 18 counties of Northeast Ohio for advancement of business retention and expansion efforts. more than 340 2,101 business calls jobs created > $197 million 2,747 jobs retained in capital investment 16 retention and expansion projects closed 10 50 companies raised money, up from 43 in 2012 361 jobs added by 51 companies $19.7 million more million than $200 in attracted capital raised in equity capital BioEnterprise helps emerging medical device, biotechnology, and healthcare services companies grow. Services include providing access to bioscience venture capital and private equity firms. Significant growth realized in biomedical investment, jobs BioEnterprise, a business formation, recruitment, and acceleration initiative designed to grow healthcare companies and commercialize bioscience technologies, reports that Northeast Ohio biomedical companies raised more than $200 million in equity capital last year. Those results represent a strong performance, considering the headwinds that health-related start-up companies face. The number of local companies raising money rose from 43 in 2012 to 50 in 2013, the highest number since BioEnterprise began collecting data about a decade ago. Jobs at Northeast Ohio biomedical companies were also on the rise: 51 BioEnterprise client companies added 361 jobs in 2013. The largest amount of job growth came from the Health IT and Services sector. 11 ECONOMIC DEVELOPMENT Helped attract 7,300 direct new jobs more than 300 positive stories in national media 95% growth in social media following Nearly 40,000 residents engaged in-region Cleveland Plus is Northeast Ohio’s first and only regional marketing campaign, working to attract businesses, talent, tourism and positive national media. The Cleveland Museum of Art’s stunning renovation and expansion project garnered national press attention. Helped generate almost $320m in new annual payroll Regional marketing gains more positive national press, social media impact Launched in 2007, the Cleveland Plus campaign has played a key role in attracting more than 7,300 direct new jobs and nearly $320 million in new annual payroll to Northeast Ohio. It has also helped place more than 300 positive stories in target media outlets such as The Wall Street Journal, The New York Times, the Financial Times, CNBC and Forbes.com, enabling the region to fare better than its Midwest competitive set in terms of coverage and tone. Additionally, the campaign conducts a popular in-region communications program; from 2012-2013 its social 12 media following grew by 95 percent, with 80 percent of its social media messages being shared. Nearly 40,000 residents engage with the campaign through its inregion program. Cleveland Plus is the only regional campaign that markets Northeast Ohio to attract, jobs, talent, and positive national media coverage to the 18-county region. The Regional Marketing Alliance oversees and operates the day-to-day operations of the campaign. JumpStart works with entrepreneurs leading promising young ventures with high-growth potential such as BoxCast, a portfolio company in downtown Cleveland. Photo by Cassie Tabora. 1,478 jobs created/retained $151 million cumulative follow-on capital raised $270million economic benefits generated for Ohio in payroll Entrepreneurial firms experience momentum-filled year As the nonprofit venture development organization JumpStart celebrates 10 years helping realize entrepreneurial potential in Northeast Ohio, it is doing so after a particularly momentum-filled year for its portfolio and client companies. Two firms — including the Beachwood-based online insurance company Embrace Pet Insurance — had exits. Three advanced materials companies — ABSMaterials, Mesocoat and Catacel Corporation — opened new facilities to better serve their customers and ramp up product development and production, while five enterprises received regulatory approval for their healthcare technology, product or device. In addition, JumpStart clients received attention from national media outlets including Popular Mechanics, Forbes, Good Housekeeping, Fast Company “Gizmodo,” NBC’s “Today,” and ABC’s “Shark Tank.” 13 ECONOMIC DEVELOPMENT MAGNET’S PRISM program helped Vitamix: 5,000 units a da day An increase in production from 4,000 units a day illio on $18 milli in boosted sales Create 40 jo job bs by upping production from 4,000 to 5,000 units a day. MAGNET (the Manufacturing Growth and Advocacy Network) combines deep manufacturing expertise with a powerful network of regional assets. MAGNET refocuses to help manufacturers grow faster with less risk MAGNET refocused its vision in 2013 to help Northeast Ohio manufacturers more quickly achieve sustainable, long-term growth. As an Ohio Manufacturing Extension Partnership (MEP) provider, MAGNET is now combining its deep manufacturing expertise with a powerful network of regional assets ready and willing to help local manufacturers grow through its PRISM (Partnership for Regional Innovation Services to Manufacturers) initiative. 14 PRISM partners include the NASA Glenn Research Center, award-winning professors and researchers at the area's colleges and university, the Port of Cleveland and "America Makes," the National Additive Manufacturing Innovation Institute in Youngstown. The PRISM program helped North Olmsted-based Vitamix, the industry leader making award-winning blending and mixing products, increase sales by upping production. In 2013, NorTech cluster companies: 196 19 6 jobs created illio on $65.1 milli illio on $12 12..8 milli in attracted capital in generated payroll NorTech provides individuals, companies, and higher education and research institutions with new opportunities for collaboration. Capital attraction, job growth seen in emerging industries Leveraging its expertise in emerging industries, NorTech provides companies of all sizes, higher education and research institutions, and individuals of diverse backgrounds with new opportunities for collaboration that create jobs, attract capital and have a long-term economic impact. Aligned with Northeast Ohio’s strategic focus on emerging industries, the organization performs a specific role in the region’s innovation ecosystem by helping grow industries not addressed by any other intermediaries: advanced energy, flexible electronics and water technologies. NorTech helps companies in these industries commercialize their products and services faster. 15 ECONOMIC DEVELOPMENT Team NEO and partners set new records Team Northeast Ohio (Team NEO) is a regional, private-sector organization that markets Northeast Ohio to the world and collaborates with its partners and others to attract new businesses and help those that are here grow. It is the Northeast Ohio regional partner for JobsOhio, a private, nonprofit corporation that drives economic development and job creation for the state. In partnership with local economic development organizations, JobsOhio and the State of Ohio, Team NEO recruited a record 16 new companies to Northeast Ohio in 2013. These new companies represent nearly 1,400 direct new jobs and more than $85 million in new direct annual payroll, with an average payroll of more than $62,000, which is also the highest in the organization’s history. As the JobsOhio regional partner, Team NEO supports the retention and expansion work of its 18 county partners by connecting them, and their client companies, with both state and JobsOhio support as well as resources across Northeast Ohio. In 2013, these collaborative efforts resulted in 120 companies receiving assistance, resulting in more than 20,400 jobs created or retained and $1.37 billion in capital investment. Business Attraction 2013 new company operations – 16 2007 – 2013 new company operations – 83 2013 new jobs – 1,400 2007 – 2013 new jobs – 7,300 2013 payroll - $85M 2007 – 2013 payroll - $320M Business Development 2013 companies helped – 120 2011 – 2013 companies helped – 216 2013 jobs created and retained – 20,400 2011 – 2013 jobs created and retained – 59,000 2013 capital investment - $1.37B 2011 – 2013 capital investment – $3B 16 Team NEO is a regional, private-sector organization that collaborates with its partners and others to attract new companies and help Northeast Ohio companies grow, such as automotive-related businesses. Physical Development: New fund capitalized, targeted investment advances catalytic projects The Greater Cleveland Partnership uses its resources to support and invest in catalytic real estate projects in the City of Cleveland. In 2013, our real estate investment affiliate, Cleveland Development Advisors (CDA), had a very successful year, completing the capitalization of its $30 million Advance Cleveland Development Fund that will pursue investments in real estate projects expected to promote job growth and business expansion. Target investment areas include waterfront development, the HealthTech Corridor, the Nine Twelve District and opportunities created by the efforts of the Group Plan Commission. CDA was also awarded a $30 million federal New Markets Tax Credit allocation, which was fully deployed by year end, enabling five transformative projects to break ground. To date, CDA has provided financing to more than 100 catalytic projects throughout Cleveland, investing $235 million that has created more than $2.5 billion in total development. 18 19 PHYSICAL DEVELOPMENT Significant progress was made in 2013 on projects championed by the GCP. Convention Center and Global Center for Health Innovation open doors The $465 million Cleveland Convention Center and Global Center for Health Innovation opened its doors to the public after more than two years of construction and several more of discussion and debate. Billed as the first showplace for medical equipment and technology, the Global Center features over 100,000 square feet of permanent showrooms for many of the nation’s healthcare leaders. The new complex is directly connected to the completely rebuilt Convention Center, which features more than 235,000 square feet of exhibition and meeting space underneath nearly 11 acres of renovated public green space in the heart of downtown. George V. Voinovich Bridge opens to traffic After two-and-a-half years of construction, the $293 million George V. Voinovich Innerbelt Bridge – opened to both eastbound and westbound traffic in November 2013. The nearly mile-long, 115-foot-high span is the first of two planned bridges that will replace the 54-year-old crossing over the Cuyahoga River south of downtown Cleveland. Work will continue in 2014, as the original bridge is demolished before a second new bridge is constructed in its footprint. When the dust finally settles in 2016, the first bridge will carry only westbound traffic with eastbound traffic shifted to the second bridge. More than 140,000 travelers a day cross the Cuyahoga valley on this critical artery. Opportunity Corridor on the fast track The Opportunity Corridor transportation and economic development project went from conceptual to the brink of reality in 2013. In September, the Ohio Turnpike and Infrastructure Commission approved the allocation of $39 million toward the first phase of the project and is expected to award an additional $176 million available for the final phase in 2017. The state funding is in addition to commitments from the City of Cleveland, Cuyahoga County, Northeast Ohio Areawide Coordinating Agency and private sector resources for the $331 million project. The Opportunity Corridor will provide direct connectivity to several of Cleveland’s most historic neighborhoods including Slavic Village, Central, Buckeye, Kinsman and Fairfax – and provide accessibility to nearly 400 acres of vacant and underutilized land in the core city. In addition, the threemile boulevard will provide direct access to the world-class educational, cultural, and healthcare institutions in University Circle – our community’s fastest-growing employment center. 20 The GCP will continue to work with all of its public, private, philanthropic and community stakeholders to advance economic and community development activities in our city and its neighborhoods. Redevelopment momentum continues in the Nine Twelve District The efforts to revitalize the Nine Twelve District received a huge boost from new projects currently underway. In 2013, CDA provided financing for the conversion of the vacant East Ohio Gas office building into 223 apartments and first-floor retail. In addition, Geis Companies is redeveloping the Ameritrust Tower historic Rotunda and Swetland Building, which have been vacant for more than 20 years. CDA is one of several sources of financing expected to close in early 2014 for the mixed-use development that will result in the redeployment of 780,000 square feet of space, including Heinen’s, downtown Cleveland’s first full-service grocery store. Cleveland neighborhoods benefit from transformational projects CDA invested in three projects in 2013 that highlight GCP’s commitment to strategic neighborhood investment. The historic renovation of the Fairmont Creamery in the Tremont neighborhood will create 30 apartment units as well as LaunchHouse, a successful Cleveland business accelerator, and other commercial space. In the Buckeye neighborhood, the third and final phase of the St. Luke Hospital redevelopment is creating a campus that includes impact-driven organizations such as Breakthrough Schools’ Intergenerational School, Boys and Girls Club of Cleveland, Centers for Families and Children, St. Luke’s Foundation and Cleveland Neighborhood Progress. CDA also provided financing to complete the second phase of Steelyard Commons, which will provide more job opportunities and access to goods and service for Cleveland residents. Flats East Bank first phase completed With the successful completion and opening of the first phase of Flats East Bank, including the Ernst & Young Office Tower, Aloft Hotel, and several restaurants in 2013, the developer is poised to begin the second phase in early 2014. The addition of 243 apartments, waterfront entertainment and additional retail and dining venues will move the project toward the original Wolstein family vision of a vibrant waterfront neighborhood. CDA and GCP are proud to play a role in financing both phases of this project that will serve as a catalyst for additional waterfront development in Cleveland. Cleveland Development Advisors (CDA), GCP’s real estate and business development finance affiliate, helped finance Phase One of the Flats East Bank project, which opened in 2013. CDA also invested in the St. Luke Hospital redevelopment project that’s creating an education and community and economic development campus in Cleveland’s Buckeye neighborhood. 21 Economic Inclusion: Focus on member engagement, advancing community benefits agreement In 2013, the Commission on Economic Inclusion, a program of the Greater Cleveland Partnership, concentrated its efforts to engage and support decision-makers within its member organizations who can drive diverse and inclusive change within their organizations. Programs, data and resources were developed and delivered to key leaders through a variety of channels. 22 23 ECONOMIC INCLUSION Hall of Fame CEOs host small-group discussions Three CEOs of the Commission’s Hall of Fame member companies hosted lunches featuring smallgroup discussions about leading successful diverse organizations with CEOs from both current and prospective Commission members. The 2013 Hall of Fame lunches were hosted by Alexander Cutler, chairman and CEO, Eaton; Sandra Pianalto, president and CEO, Federal Reserve Bank of Cleveland; and Beth Mooney, chairman and CEO, KeyCorp. Forum for C-suite executives focuses on building diverse senior management pipeline The fifth Senior Executive Forum, “How to Build a Diverse Senior Management Pipeline: Examples of Success” was held in November and attended by 80 C-level executives from Commission-member organizations. Dr. Janet Reid, co-founder of Global Novations, a leading diversity management consulting firm, served as the keynote speaker and facilitated a panel of executives from Best-in-Class Commission organizations Eaton, Northeast Ohio Regional Sewer District and Thompson Hine. Programming supports diversity professionals, procurement officers The fifth annual full-day Diversity Professionals conference, “Inclusion as a Competitive Edge,” was attended by 250 diversity and human resource professionals and featured Dr. Rohini Anand, senior vice president and global chief diversity officer at Sodexho, as the keynote speaker. Sodexho was named No. 1 on DiversityInc's 2013 Top 50 Companies for Diversity list. Other presenters included speakers from two other Top 50 companies, Kraft Foods and KPMG and nationally recognized experts Shirley Engelmeier, CEO, InclusionInc, and Cindy Burrell, CEO, Diversity in Boardrooms. Cleveland State University Diversity Management Program faculty led a special all-day track, ”Culturally Competent Leaders are Change Agents.” 24 Quarterly meetings of the Chief Procurement Officers Group were held to support members’ supplier diversity goals. In 2013, to accommodate the unique supplier diversity challenges facing different industry segments, the CPO group met quarterly in five smaller clusters: Corporate, Healthcare, Higher Education, Finance, and Government. In addition, subject-matter expert presenters from Cincinnati USA Chamber of Commerce Minority Business Accelerator and Northern Minority Supplier Development Council shared best practices. New speaker series on diversity launched for business leaders "Dialogues on Diversity," jointly sponsored by the Commission and the Cleveland Metropolitan Bar Association, was launched to engage area leaders from the legal and corporate community in important discussions around effective strategies to promote and improve diversity and inclusion within area businesses, firms, organizations and the public sector. The first two presenters were PNC Regional President Paul Clark and Marcus Glover, senior vice president and general manager, Horseshoe Casino Cleveland. DiversityInc partnership promotes national visibility A formal partnership with DiversityInc, a nationally recognized consulting and benchmarking company, provided national visibility for the Commission and Northeast Ohio’s successes in diversity and inclusion and benefits for our membership including features in both the print and online DiversityInc magazine and e-newsletters. In addition, Commission members received subscriptions and discounted tickets to selected DiversityInc events. Historic MOU signing serves corporate members and minority businesses Significant progress was made in 2013 to implement the parameters of the MOU. Action steps include: Working through the Commission on Economic Inclusion, the Greater Cleveland Partnership played a significant role within the public-private partnership that created the memorandum of understanding (MOU) on construction community benefits agreements. The MOU was signed in February by the City of Cleveland, organized labor, the business community, local contractors and organizations to help drive investment in Cleveland to create direct benefits for local residents and businesses. • Establishing a Construction Diversity and Inclusion Committee, chaired by Natoya Walker Minor, chief of public affairs, City of Cleveland, and Anthony Panzica, president and CEO, Panzica Construction Company. The committee and subcommittees incorporate more than 70 representatives from the business community, project owners, unions, contractors, schools, training organizations, black, Hispanic and women-focused community groups and the City of Cleveland; In September, 10 public and private project owners endorsed the MOU expressing the intent of each organization to make community benefits a priority in planning and developing projects totaling $5 billion: • Convening the Cleveland Metropolitan School District Construction Employers Association and unions to develop an operating agreement leading to curriculum for school-to-apprenticeship by 2014; Case Western Reserve University • Launching a workforce demand study which will project actual demand of construction and skilled trade related labor over the next five to seven years. This forms the basis for training of local and minority workers by several collaborators. • Building partnerships between training organizations and organized labor to ensure a plan for meeting workforce needs “inclusively.” Cleveland Clinic Cleveland Metropolitan School District Cuyahoga Metropolitan Housing Authority Dominion East Ohio Geis Companies The Medical Center Company The MetroHealth System Northeast Ohio Regional Sewer District University Hospitals Project owners who endorsed the Memorandum of Understanding included (left to right): Julius Ciaccia, Northeast Regional Sewer District; Dr. Ed Hills, The MetroHealth System; Fred Geis, Geis Companies; and Steven Standley, University Hospitals. (Photo by Cleveland City Hall photography). A memorandum of understanding on construction community benefits agreements was signed in February 2013 by the City of Cleveland, organized labor, the business community, local contractors and organizations. Left to right: Cleveland Mayor Frank Jackson, Anthony Panzica, president, Panzica Construction and co-chair of the Commission’s Construction Diversity & Inclusion Committee; and José Feliciano, GCP Board and Commission Advisory Board member. (Photo by Cleveland City Hall photography) 25 ECONOMIC INCLUSION Members recognized for accomplishments and progress In 2013, the Commission presented its annual Best-in-Class and Hall of Fame awards at the GCP Annual Meeting for the first time as part of a year-long focus on increasing CEO engagement in the Commission’s diversity and inclusion initiatives. These awards are a reflection of what leadership commitment can yield. Selection for these awards is based on quantitative and qualitative information drawn from the Commission’s annual Employers Survey on Diversity™ and additional sources. Joining four past Hall of Fame inductees, Eaton (senior management diversity), Kaiser Permanente (board diversity), KeyCorp (board and supplier diversity), and Time Warner Cable (workforce diversity), the 2013 inductees were: Board Diversity University Hospitals Workforce Diversity Case Western Reserve University and U.S. Bank, Northeast Ohio Supplier Diversity Eaton and Federal Reserve Bank of Cleveland Best in Class winners were named in three categories: nonprofit/government, large corporation and middle market: Board Diversity University Hospitals, Eaton and Lifebanc Senior Management Diversity Cleveland State University, KeyCorp, and Northeast Ohio Regional Sewer District Workforce Diversity Case Western Reserve University, U.S. Bank, Northeast Ohio, and YMCA of Greater Cleveland Supplier Diversity Cuyahoga Metropolitan Housing Authority, Eaton, and Federal Reserve Bank of Cleveland 26 The Commission on Economic Inclusion’s Best-in-Class winners and Hall of Fame inductees were honored at the GCP Annual Meeting. Accepting the awards: Left to right: Alexander Cutler, chairman and CEO, Eaton; Thomas Zenty III, chief executive officer, University Hospitals; Gordon Bowen, chief executive officer, Lifebanc; Beth Mooney, chairman and CEO, KeyCorp; Ronald Berkman, president, Cleveland State University; Julius Ciaccia, executive director, Northeast Ohio Regional Sewer District; Barbara Snyder, president, Case Western Reserve University; Alan Zang, president, U.S. Bank, Northeast Ohio; Glen Haley, president and chief executive officer, YMCA of Greater Cleveland; Jeffrey Patterson, chief executive officer, Cuyahoga Metropolitan Housing Authority; and Gregory Stefani, chief operating officer, Federal Reserve Bank of Cleveland. 27 Education Reform: Efforts aim to transform schools, improve outcomes In 2013, the Greater Cleveland Partnership continued to support education as one of its strategic priorities. Our involvement included input into career-based curriculum development, helping the Transformation Alliance mobilize to implement provisions of the Cleveland Plan to reform public education in Cleveland, and advocacy efforts to preserve key education legislation. 28 29 EDUCATION REFORM “Take it to the MAX!” GCP continued to work with and support the Friends of Max Hayes, the recently-formed advisory board for the Cleveland Metropolitan School District’s (CMSD) Max S. Hayes High School, which prepares high school students to work in 21st century trades and high-tech career options or to continue on to college. GCP has provided financial support to further the implementation of the “Take it to the MAX!” plan, which seeks to further attune the Max Hayes curriculum and learning environment to the latest cutting edge developments in the career and technical education space. The Max Hayes learning environment will take a significant step forward with the planned opening of the new, state of the art Max S. Hayes High School building in 2015. GCP also actively participates with the school through its seat on Friends of Max Hayes, which works to connect Max Hayes partners and supporters with the activities and transformation of the school. GCP recognized for impact on K-12 education Also last year, GCP was honored to be recognized twice for its impact on K-12 education in the City of Cleveland. In May, GCP was honored by the Positive Education Program (PEP) for its work on the Cleveland Plan, including participating in the community coalition that drafted the plan and leading the advocacy for the implementing legislation passed by the Ohio legislature, as well as GCP’s enthusiastic fund-raising support of Issue 107, the successful November 2012 16 mill CMSD levy that was passed by over 57 percent of Cleveland voters. Later, GCP was recognized by CMSD as a “Five Star General” at CMSD’s sixth annual “Army of Believers” luncheon in August. GCP was honored for “outstanding commitment to the pursuit of excellence and academic achievement for the students of the CMSD.” GCP shares these awards with its members whose support is vital to successful efforts to improve educational outcomes for the children of Cleveland. 30 GCP helps Transformation Alliance advance agenda In late summer, the Cleveland Transformation Alliance, which was created through the Cleveland Plan and its board members appointed by Cleveland Mayor Frank Jackson, hired full-time Executive Director Megan O’Bryan and began operating out of the GCP offices. Under the Cleveland Plan, the Transformation Alliance is charged with ensuring fidelity to the Plan, assessing the quality of all Cleveland public schools (district and charter), communicating to parents about quality school choices and monitoring charter sector quality and growth in Cleveland. GCP provided in-kind support including office and conference room space in the GCP offices and IT services. Additionally, GCP supported the Transformation Alliance’s initial school choice marketing campaign, “Right School, Right Now” by highlighting the campaign in our electronic communications and making Transformation Alliance information on the quality of all public schools in each Cleveland neighborhood available to our members and other visitors to the GCP offices. GCP joins business community efforts to preserve Common Core standards In November, GCP joined the Ohio Business Roundtable and the larger business community in opposition to Ohio House Bill 237, which is anti-Common Core legislation sponsored by State Representative Andy Thompson (R-Marietta). The Common Core State Standards (CCSS) Initiative, led by the National Governors Association Center for Best Practices and the Council of Chief State School Officers, has produced K–12 standards in the foundational subjects of math and English that meet the business community’s expectations: they are college- and career-ready, grounded in evidence and internationally benchmarked. The state-led effort has established a single set of clear educational standards for grades K-12 in English language arts and mathematics that states voluntarily adopt. Ohio adopted the standards in 2010 and is scheduled for full implementation in the 2014-2015 school year. The standards are clearly designed to ensure that students graduating from high school are prepared to enter college and/or the workforce with the reading, writing, speaking and listening, language and mathematics skills they need to be successful. Unfortunately, Common Core remains under attack in the Ohio legislature by a small, but vocal, minority. Those opposed to the Common Core often claim that it is a federally-led “takeover” of school curriculum, will cause some states to “dumb down” standards already in place and that Common Core will expose the private data of children to the federal government. None of these myths are true. In advance of a hearing in November, GCP submitted a letter to the House Education Committee in support of Common Core urging tabling HB 237 because it will undo important progress that has been made to improve education. Cleveland was among the first Common Core pilot locations in the nation and we know the impact these meaningful standards can have in our classroom. GCP will continue to advocate with the Northeast Ohio delegation in support of Common Core. GCP’s early support of STEM education paves way for third high school campus GCP and its members continue to support STEM (science, technology, engineering and math) education within the CMSD. Based on the groundwork laid by GCP and its members several years ago to secure funding for the first two campuses of the MC2 STEM High School at GE Nela Park and the Great Lakes Science Center, CMSD was able to open its third MC2 STEM campus on the campus of Cleveland State University (CSU). KeyBank Foundation contributed $1.25 million to renovate space at CSU for the school on two floors of Rhodes Tower. The space includes renovated classrooms and a state-of-the-art fabrication laboratory (or “fab lab”) that uses laser-powered technology. GCP members KeyBank and CSU continue to ensure that STEM education is a priority in the Cleveland schools. Education reform in the Cleveland Metropolitan School District (CMSD) continued to be a GCP strategic priority in 2013. 31 Membership: GCP involvement builds connections, strengthens the bottom line Greater Cleveland Partnership Investor members are connected to a broad spectrum of the Northeast Ohio business community and a wide range of business development resources, benefits and opportunities to influence the private sector’s economic development agenda. Middle-market programming expands Our second Greater Cleveland Middle Market Forum, held at the Wyndham Cleveland at PlayhouseSquare, attracted more than 250 middlemarket business representatives for a half-day discussion and conversations with leading midmarket CEOs, and sessions on topics that explored the factors that contribute to growing a successful middle-market company. The forum included a one-on-one discussion with GCP Board member Jodi Berg, president and CEO of Vitamix moderated by GCP Middle-Market Committee Chair Darin Haines, MCPc’s chief technology officer; a keynote address by Cleveland Browns owner Jimmy Haslam, CEO of Pilot Flying J; and the latest middle-market research presented by Dr. Anil Makjiha, academic director of the National Center for the Middle Market (NCMM). 32 We also expanded our middle-market programming with three additional forums on topics of importance to mid-market executives: healthcare reform, innovation, and talent attraction and retention presented in collaboration with our strategic partner, the NCCM, and our middle-market sponsors Alliance Solutions Group, Medical Mutual and Plante Moran. New website launched, member e-newsletter redesigned In 2013, we launched our new website and a new look for our Every Monday e-newsletter. The website redesign included more up-to-date news on the home page; home page links to the expanded content of Every Monday; easier access to our events and videos; more prominent recognition of our lead Investor members; higher visibility of our business development resources; and prominent placement of our Twitter feeds. Members connect through events and programs strategy events for senior executives, diversity and HR professionals, and chief procurement officers. GCP events and programs build connections for our members to other business community and thought leaders and provide access to first-hand knowledge about economic development issues that impact the business climate in our city, region and state. Education provided on key ballot issues Special events offered in 2013 included the 50th Anniversary Public Officials Reception that featured 13 honorees from the past, including Governors Celeste and Voinovich, former Members of Congress, leaders from the Ohio General Assembly, the City of Cleveland and Cuyahoga County; the GCP Morning Conversation series, an informal, off-the-record discussion with elected officials and key editors and columnists; GCP Chairman’s Briefing with updates from GCP Board and staff leadership; and diversity management With an unprecedented four levies—Port of Cleveland, Cleveland Public Library, Cuyahoga County Health and Human Services, and the Cleveland Metroparks— on the November 2013 ballot, all supported by GCP, we provided a three-month campaign to educate our members about the importance of passing all of them. Information provided included individual web pages on each levy on the GCP website with links to e-marketing materials, fact sheets, FAQs and videos, as well as links to each campaign’s website. As noted on Page 6 in the Advocacy of this report, all levies passed! Faculty from The Ohio State University Fisher College of Business led breakout sessions at the 2013 Greater Cleveland Middle-Market Forum (left to right): Jill Ellingson; Gretchen Goffe, Thomas Goldsby and Oded Shenkar. 33 COSE: Empowering small business success COSE, one of Ohio’s largest small business support organizations, is committed to empowering small business success through a series of programs, services, events, and resources that support entrepreneurs, their businesses, and their employees. COSE helps small businesses achieve their idea of success in order to build richer, more vibrant communities that improve the economic climate and enhance quality of life. 34 35 COSE Convention collaboration creates largest gathering of small businesses in Midwest Leading role in healthcare reform education for small business Small businesses across Ohio and western Pennsylvania enjoyed two days of education and networking among some 900 attendees at the 2013 Small Business Convention at Kalahari Resorts in Sandusky. Thirty-seven chambers of commerce and small business support organizations collaborated with COSE to plan and produce every aspect of the convention. COSE continued its legacy of guiding small businesses through the often choppy waters of the health insurance marketplace. COSE held 11 Health Care Reform Education Sessions, with more than 400 attendees that gave small business owners the information they needed to make educated decisions as implementation of the Affordable Care Act commenced. The convention kicked off with the 2013 COSE Business Pitch Competition finale. More than 80 aspiring entrepreneurs from across Ohio got invaluable feedback on their business ideas from a panel of small business owners and experts over two rounds of judging. The final four participants made live final pitches to a panel of judges that included Jeff Hoffman, founder in the Priceline.com Family of Companies. The finalists shared $40,000 in prize money. COSE worked with its chamber affiliate partners across Northeast Ohio to reach small businesses with its healthcare reform expertise, as well as chambers involved in the delivery of health insurance and benefit solutions across the United States. COSE took a leadership role in convening chamber leaders supporting more than 200,000 small businesses to share strategies and best practices in a Health Care Reform Summit for 39 chambers through their trade organization, the American Chamber of Commerce Executives (ACCE). Energy efficiency efforts for small business take global stage Small businesses continued to benefit from COSE’s lead role in energy efficiency education. COSE secured a three-year, $1.5 million grant from Dominion East Ohio to provide no–cost energy assessments. In the first nine months of the program, 250 small businesses across Ohio received free energy assessments through the COSE/Dominion Program and many are considering or have taken action on improvements and projects to increase the energy efficiency of their business. COSE’s work on energy efficiency for small businesses received national acclaim when highlighted as one of the country’s top ten chamber energy efficiency initiatives in the Local Chambers as Change Agents: Creating Economic Vitality through Clean Energy and Innovation report from the Chambers for Innovation and Clean Energy (CICE). COSE energy leadership was also invited to present on their work at the International Chambers of Commerce’s World Chambers Federation eighth World Chambers Congress in Doha, Qatar. 36 “Year of Small Biz” highlights local chamber partnerships More than 24,000 Northeast Ohio small businesses are benefitting from collaboration between COSE and local chambers of commerce. In 2013, the Year of the Small Biz campaign saw COSE partner with 15 local chambers of commerce and 23 different cities to engage with and recognize more than 400 local small business owners for their work and their contributions to their communities. Peer-to-peer connections in the IT industry NEOSA, the Northeast Ohio Software Association, continued its work supporting the region’s IT industry members by producing content and creating opportunities centered on growth, raising the profile of the industry and working to support the talent ecosystem. NEOSA events and communication efforts resulted in 2,200 event attendees, 3,500 podcast downloads and 80 college interns placed. NEOSA also awarded $11,000 in scholarships through the Cool Tech Challenge competition. Innovative new resources for small business owners and aspiring entrepreneurs Small businesses began to see new opportunities develop at COSE stemming from our extended conversations with members over the last few years. Busy small business professionals now have a better way to connect with each other through COSE with the roll-out of the web portal called Linktunity. At Linktunity.com, small businesses can connect with their peers to learn, grow and generate new business opportunities. Aspiring entrepreneurs and those who have recently started a new business will be the beneficiaries of a new program at COSE called incFuse. This new offering for start-up and early-stage businesses provides the needed connections to a large network of business resources, support organizations and experts – all through one web location. Providing the connectivity and guidance to the right source of support will accelerate the path to success for these new entrepreneurs. Advocacy efforts connect small businesses with legislators To ensure that their voices are heard, COSE continued to connect small businesses directly to their legislators through their annual COSE Day at the Capitol and Washington Presentation events, as well as through legislator visits to small businesses in local communities that were coordinated with our chamber partners in those areas. Serving as the voice of our small business members on important legislative issues, COSE also supported Ohio House Bill 5 which promotes uniformity and simplicity within Ohio’s municipal income tax structure and reduces the reporting burden on small businesses. COSE was a key supporter and collaborator with Lt. Governor Mary Taylor’s Common Sense Initiative (CSI), which works to ensure that all current and future state rules and regulations are fair and equitable and do not cause undue burdens on businesses, fostering economic development and growth in Ohio. COSE’s energy team provided an energy assessment for Plantscaping and Blooms, a Cleveland family-owned company now in its 35th year. 37 2013 Board of Directors VICE CHAIR Beth E. Mooney Chairman & CEO KeyCorp TREASURER Robert C. Smith President & CEO Spero-SmithInvestmentAdvisers,Inc. Brent D. Ballard Managing Partner Calfee, Halter & Griswold LLP Jeanne Halladay Coughlin President The Coughlin Group, Inc. James M. Free* Director NASA Glenn Research Center Joe Banner Chief Executive Officer Cleveland Browns Allen L. Crowley, Jr., AIC Partner COR Services Lyle G. Ganske Partner-in-charge, Midwest Region Jones Day Jodi L. Berg President Vitamix Corporation Alexander M. Cutler Chairman and CEO Eaton Ronald M. Berkman, Ph.D. President Cleveland State University Jenniffer D. Deckard Chief Executive Officer Fairmount Minerals Ltd. Isaac C. Brooks Jr. Managing Director The PARTNERSHIP James M. Dickey Managing Director, Cleveland Office Accenture Scott Chaikin Chairman and CEO Dix & Eaton Paul J. Dolan Chairman and CEO Cleveland Indians Baseball Co., LP Sharlene Ramos Chesnes Board Chair and Executive Vice President InterChez Logistics Systems, Inc. Terrance C.Z. Egger Publisher and President The Plain Dealer Publishing Company CHAIR Christopher M. Connor Chairman & CEO The Sherwin-Williams Company DIRECTORS Richard Chiricosta President and CEO Medical Mutual of Ohio William F. Christopher President and CEO Lakeview Consulting Enterprises Paul Clark Regional President PNC Bank, Northern Ohio Lonnie Coleman Chairman, Owner and President Coleman Spohn Corporation 38 Roxanne Kaufman Elliot Founder and President ProLaureate José C. Feliciano Chairman Hispanic Roundtable of Cleveland John J. Ferchill Chairman and CEO The Ferchill Group Darrin W. Fleming Managing Director Stratavant Eduardo Gonzalez President Ferrous Metal Processing Co. Adam A. Grzybicki President AT&T Ohio James L. Hambrick Chairman, President and CEO The Lubrizol Corporation Maia Hansen Managing Director, Cleveland Office McKinsey & Company Frank Higgins President and CEO Nestle USA Prepared Foods Company Richard J. Hipple Chairman, President and CEO Materion James D. Ireland III Managing Partner Capital One Partners LLC Alex Johnson** President Cuyahoga Community College Elizabeth B. Juliano President Litigation Management, Inc. Sister Judith Ann Karam, CSA** Congregational Leader The Sisters of Charity of St. Augustine Frederick R. Nance Regional Managing Partner Squire Sanders (US) LLP Samuel A. Steinhouse President SPS Partners LLC Jerry Kelsheimer President and CEO Fifth Third Bank, Northeastern Ohio Stephen D. Newlin Chairman, President and CEO PolyOne Corporation Frank C. Sullivan Chairman and CEO RPM International, Inc. R. Steven Kestner Executive Partner BakerHostetler Donald A. Nolan President Avery Dennison Materials Group Maryrose T. Sylvester President and CEO GE Lighting Len Komoroski President Cavaliers/Quicken Loans Arena Ashley Basile Oeken** Executive Director Engage! Cleveland Eddie Taylor Jr. President Taylor Oswald Evan M. Koppel Regional Sales Director United Airlines Rear Admiral Fred Midgette* District Commander Ninth Coast Guard District C. Lee Thomas Managing Partner, Cleveland Office Ernst & Young LLP Daryl Z. Laisure President and CEO ZIN Technologies, Inc. Sandra Pianalto** President and CEO Federal Reserve Bank of Cleveland Sharon L. Toerek Partner Licata and Toerek Lisa Logan Vice President Logan Clutch Corporation Charles A. Ratner Chairman of the Board Forest City Enterprises, Inc. Daniel P. Walsh President, Cleveland Region Huntington National Bank Joe Lopez President and CEO Aster Elements, Inc. Deborah Z. Read Managing Partner Thompson Hine LLP Zev Weiss Chairman and CEO American Greetings Corporation Christopher Mapes Chairman, President and CEO Lincoln Electric Gwenay S. Reaze-Coniglio President The Coniglio Group Steven J. Williams President and CEO Elsons International Bonnie Matthew Founder and President Food for Thought Catering Tim Reynolds President Tribute, Inc. Alan M. Zang President U.S. Bank, Northeast Ohio Scott C. Miller Vice President & General Manager Dominion East Ohio Walter M. Rosebrough, Jr. President and CEO STERIS Corporation Thomas F. Zenty III Chief Executive Officer University Hospitals Bernard Moreno President The Collection Auto Group Deborah Rutledge Chief Operating Officer The Rutledge Group GCP Directors as of December 31, 2013. Scott Mueller CEO Dealer Tire Rion Safier Owner Rion Safier Accounting LLC Tim D. Myers President Alcoa Wheel and Transportation Products Barbara R. Snyder President Case Western Reserve University * Federal Installation Liaison ** Other Non-Voting Member 39 Looking Ahead As the Greater Cleveland Partnership enters its 10th year, we look forward to continuing collaboration with our partners in the private and public sectors to build on the work we’ve done so far. Our organization’s initial focus was on “turning the corner,” and it has, indeed, been turned. The positive results are visible and measurable. Our agenda is full, but we are prepared to take on the catalytic issues and initiatives that must be advanced to support and grow the economies of our city and region. 1240 Huron Road E., Suite 300 Cleveland, OH 44115 216.621.3300 gcpartnership.com GCP Staff Leadership Joe Roman President and CEO Greater Cleveland Partnership Steve Millard President & Executive Director COSE Yvette Ittu Executive Vice President of Finance & Operations Greater Cleveland Partnership Carol Caruso Senior Vice President, Advocacy Greater Cleveland Partnership Deb Janik Senior Vice President, Real Estate and Business Development Greater Cleveland Partnership Shana Marbury, Esq. General Counsel Vice President, Strategic Initiatives & Research Greater Cleveland Partnership Robert Recker Senior Vice President, Marketing, Communications and Membership Development Greater Cleveland Partnership Brian Hall Executive Director Commission on Economic Inclusion 41 1240 Huron Road East Suite 300 Cleveland, Ohio 44115 216.621.3300 gcpartnership.com ECONOMIC RENAISSANCE LAKEFRONT PLAN EDUCATION REFORM NASA A GLENN OPPORTUNITY CORRIDOR MIDDLE-MARKET INITIATIVE GAME-CHANGING STRATEGIC PRIORITIES JOB CREATION REGIONAL PROSPERITY
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