Bizdom Cleveland has invested in 16 young companies since it set up shop in January 2012, and the organization is targeting 18 more companies this year. While many of the companies are local startups, Bizdom also scours the country in search of promising businesses to recruit to Cleveland.

So far Bizdom has brought four companies to Cleveland: Queryly from New York, MascotSecret from San Francisco, Firmly Planted from Los Angeles and CourseBuffet from Seattle.
 
“The bottom line is we’re looking for the best and the brightest wherever we can find them,” says Paul Allen, leader of Bizdom Cleveland. “We find them, and then we do our best to sell them on the benefits of doing business in Cleveland.”
 
It’s not difficult to recruit companies to the area, given Cleveland’s support of small startups. “There’s a very large and organized infrastructure here,” Allen explains. “Cleveland has a bunch of organizations that provide support, expertise, resources, investment, equity and debt funding. The continuum of organizations that support small business is unlike other parts of the country.”
 
And the assistance is accessible. “Cleveland has a tight-knit startup community that doesn’t take long to identify the key players,” Allen says. “They exist here and you can access them.” Allen points out that the Dan Gilbert and Quicken Loans name also attracts businesses.
 
One of Bizdom’s requirements is that its portfolio businesses locate in Cleveland. All four relocated companies have chosen downtown for their headquarters.
 
Bizdom companies have created 36 full-time and 10 part-time jobs. Allen hopes more out-of-town companies will come to Cleveland for Bizdom’s fall accelerator program in August. “We have lots of applicants from out of state for August,” says Allen.

 
Source: Paul Allen
Writer: Karin Connelly

The Brain Gain Cleveland Project (BGCP) has teamed up with the Cleveland Metropolitan Bar Association to stage a lunchtime pep rally for the city they love.

The rally will be hosted by the legal organization and serve as its annual meeting, just with a far more diverse crowd than usual, says Debra Mayers Hollander, deputy director of scouting for BGCP.

Hollander is expecting 1,000 guests to make it to the floor of Quicken Loans Arena for the June 28 event. Among the more famous participants scheduled to appear are Cavs owner Dan Gilbert and Senator Sherrod Brown. BGCP members the Cleveland Orchestra and Positively Cleveland will be among the institutions on hand. The event also will include live music, videos about Cleveland, and food from local eateries.

Rally attendees can fill out a registration form online or purchase tickets by calling the bar association at 216-696-3525. Those who miss the daytime event can make up for it that night with a BGCP music and networking get-together at The Tavern Company in Cleveland Heights.

"It's going to feel inspirational," Hollander says. "Everybody coming together in the heart of downtown Cleveland to support one another."

BGCP is a nonprofit advocacy group founded by bar association members to grow the city through the creativity and energy of its citizens. The grassroots effort is led by Jon Leiken, a Jones Day partner and bar association president-elect. BGCP's website launched in 2012 and has attracted about 350 “scouts," a term referring to its members.  

"We hope [the rally] encourages people to join us and become a scout," says Hollander.

 
SOURCE: Debra Mayers Hollander
WRITER: Douglas J. Guth

San Francisco and Austin offer residential curbside composting, but such forward-thinking green ideas have yet to become a reality in Cleveland. A recently-awarded grant from Enterprise Community Partners, however, will help the Detroit Shoreway Community Development Organization think through how to develop a community composting facility for restaurants in the Cleveland EcoVillage.

Although citywide composting may not be in the cards right now, the pilot project could demonstrate ways to scale up composting in a range of city neighborhoods.

A similar $40,000 grant was also awarded to Burton Bell Carr Inc. to develop a safer streetscape plan for the Kinsman EcoDistrict. Forty percent of area residents do not have a car, and a recent multi-car accident here injured five people. BBC will develop a plan to improve the ability to safely bike and walk on Kinsman.

"Cleveland was the only city in the nation that got two projects funded through this program, which is pretty exciting," says Michelle Mulcahy with Enterprise Community Partners. "These projects are neighborhood-scale sustainability approaches that support the area's ongoing community development work."

Once the plans are finalized, these projects also could become national test cases for how to green cities, furthering Cleveland's reputation as a leader in this area.

Enterprise also recently issued a Request for Proposals to provide funding for a neighborhood-based climate action plan that would become part of a citywide plan.


Source: Michelle Mulcahy, Mark McDermott
Writer: Lee Chilcote

Banks typically lend money to projects; developing them typically is left to homebuilders. Yet Third Federal, which started in a Slavic Village storefront 75 years ago, has taken the unusual step of assembling land and breaking ground on a huge community here.

Construction is underway at Trailside at Morgana Run, a 95-home development that will feature affordably-priced homes within a completely new urban subdivision with access to green space and a rail-trail. The project is located at Aetna and E. 71st Street next to the bank headquarters.

"Slavic Village really is the phoenix rising up in the city," says Jennifer Rosa, Public Relations Manager with Third Federal. "It's not that we couldn't find a developer; it's that the project is so important to us, we want to hold it to our standards and control it. We wanted to provide additional funding to keep Slavic Village going."

The project has taken over a decade to get to this point. Third Federal acquired land from individual owners and cleaned it up using Clean Ohio funds and other sources. The bank formed a public-private partnership with the City of Cleveland, Slavic Village Development and Zaremba Homes and designed the project. Then the recession came along and walloped any plans to break ground until now.

Homes at Trailside at Morgana Run will be priced from $126,000-$132,000 and feature two to three bedrooms and a single-floor master suite option. With down payment assistance, monthly payments fall well below rental rates for similar units.

Rosa says the timing couldn't be better. "We're seeing more jobs being created, more people living in the city. This is a place where people can afford a home."

The first 10 homes are under construction and nearly to the point of being framed. A model home will be available to walk through in July. Although none of the homes are sold yet, Rosa says that buyer interest has been strong.

The urban pioneers who live here will be greeted by a "prairie-like feel," Rosa says. "There will be lots of green space with native Ohio plants and grasses."


Source: Jennifer Rosa
Writer: Lee Chilcote

East, West, North and South -- it's getting easier and easier to score a hot, fresh and delicious meal from a food truck. In just three years' time, the Cleveland food truck scene has zoomed from 0 to 60, with dozens of rigs scattered all over town. Here's a little help finding them.

Kelli Hanley sees the big picture in cooking -- and she wants to teach people the whole concept of it, from sourcing the produce, to understanding what’s in your pantry, to putting a meal on the table. So she started The Agrarian Collective, a mobile cooking school that does just that.

“When I started The Agrarian Collective, I envisioned an Earth-to-table lifestyle school,” she explains. “My approach is around understanding the relationships between your pantry and kitchen table. My classes are not designed to just watch someone cook.”
 
Hanley recently won a $5,000 loan from a private giving circle after participating in the Bad Girl Ventures spring 2013 business plan competition. She’ll use the loan to build her mobile kitchen, with six two-burner cooking stations. Hanley will take the mobile kitchen to farms and farmers markets and other locations around Northeast Ohio.
 
Hanley’s first class will teach people how to make strawberry jam. The class will meet at a Hiram farm. “We’ll have scones and coffee in the morning and then we’ll go out and show how to pick the best berries for making jam,” she says. “We’re really focusing on hands-on technique.”
 
Most of the classes will collaborate with farmers, chefs or tradespeople to teach specific skills. “When you go home you’ll really feel confident that you can put what you learned to use in the kitchen,” says Hanley. She is working with the Cleveland Culinary Launch, chef Karen Small of the Flying Fig and urban farmers to design the classes.
 
“There has been amazing interest,” says Hanley. “People are telling me they can’t wait for my classes. I feel like it’s something that’s really taking off.”

 
Source: Kelli Hanley
Writer: Karin Connelly

Near West Theatre's new home will be nothing if not active when it opens next year. It will be filled with youth and adults rehearsing for its signature brand of community theatre -- large ensemble productions that bring the arts to youth and city residents.

And when its shows are running, it will draw up to 275 patrons per show into a new, state-of-the-art theatre that caps off a string of investments in the Gordon Square Arts District.

The building not only will be active -- it will be "passive" when it comes to energy consumption. It will boast a super-insulated, passive design common in Europe but still relatively new in the U.S. The 24,000-square-foot ultra-energy-efficient theatre will be the first of its kind in the U.S., featuring super-thick walls, an energy-efficient heat recovery ventilation system, and a 75,000-watt array of solar panels.

"It will be unlike other buildings in the neighborhood," says Hans Holznagel of the new Near West Theatre, which will be located at W. 67th and Detroit in the Gordon Square Arts District. "We hope people will see the sign and say, 'Wow, that metal building looks pretty cool. What's going on in there?'"

Philanthropists Chuck and Char Fowler earmarked a special gift for the building's passive design, which is expected to save more than 35 percent in energy costs, or about $1.2 million over 50 years. That kind of savings appeals to long-term users.

"In a typical commercial building, 30 to 35 percent of the heat going into the building is just to offset air leakage," says Adam Cohen, a Virginia-based architect and passive house consultant who worked on the project. "There's more interest in passive design now, especially from end users who are going to own the buildings."

The project was far from simple. Most passive commercial buildings have fairly static loads, unlike a theatre whose use varies widely. On any given day there could be people working in offices or large casts rehearsing. Cohen helped NWT to develop a high-efficiency mechanical system that can handle such fluctuation.

Holznagel says the theatre will finally realize its dream of moving into a new home (with air conditioning, he says with glee) that offers the right amount of rehearsal, dressing room and backstage space, not to mention modern administrative offices.

"We'll feel very much at home in this energy-efficient building," he says.


Source: Hans Holznagel, Adam Cohen
Writer: Lee Chilcote

Jewels Johnson dabbled in a few different career paths before she found her true calling: baked goods. She grew up in Shaker Heights, went off to London, Charlotte, Las Vegas and Chicago before returning to Shaker in 2006 to work as a teacher at Shaker Heights High School.
 
Then, in 2011, armed with her grandmother’s recipe box, Johnson opened Sugar Plum Cake Company. “I’m a self-taught baker; my grandmother taught my mom and my mom taught me,” she says. “My inheritance was a 1937 KitchenAid mixer, the oldest known certified one that still works.”
 
Sugar Plum specializes in custom made cakes, cupcakes and other goodies. Everything is custom made to order. Johnson’s baked goods are so popular she quit her teaching job this year to concentrate on Sugar Plum full-time.
 
“For me, baking was really something to do during the summer,” Johnson says. “But it allowed me to quit my job two years later.” The business has taken off, and customers usually have to order at least a week in advance. Sugar Plum has 600 clients, with more than 400 being repeat customers. Johnson reports that sales have increased by at least 50 percent per quarter.
 
Earlier this month, Sugar Plum Cake Company was named the grand prize winner of the Spring 2013 Bad Girl Ventures Business Plan Competition. Johnson received a $25,000 loan to grow her business.
 
Johnson recently teamed up with Fresh Fork Market to develop a line of baking mixes using locally sourced flour and natural sweeteners, called Devour! Gourmet Baking Mixes. The line features a variety of cake, brownie, pancake and bread mixes. The line is available through Fresh Fork Market and Sugar Plum. Johnson is working with some additional retail sites to carry the Devour! line.
 
Johnson in the in the process of looking for a permanent location, where she intends to offer pop-up space for local artists while selling her cakes. She employs seasonal workers during peak times to help with deliveries and plans to hire three permanent employees this year to help with the Devour! production.

 
Source: Jewels Johnson
Writer: Karin Connelly

Nine young Northeast Ohio businesses were inducted into the Charter One Launch100 Leadership Circle on April 25. Local inductees included Nicole Zmij, CEO of Amplified Wind Solutions in Cleveland, Lindsay Sims, founder and CEO of Renter’s BOOM, Lissette Rivera, founder of SafeCare, all in Cleveland, and Shaquita Graham, CEO of King J Transportation in South Euclid.

“The Launch100 Leadership Circle really focuses on minority entrepreneurs and encourages them to take the risk of starting a new venture, particularly those who have the revenue potential of $10 million,” says Ken Marblestone, president of Charter One and RBS Citizens bank. “The Leadership Circle honors leaders within the Launch 100 group and works to inspire them to take risks and network with each other, and make sure they are recognized for their ideas and entrepreneurism.”
 
Founded in 2012, the Launch100 offers a peer networking opportunity for minority and women business owners with high growth potential.  “We’re focused on how to help these expanding businesses succeed,” says Marblestone. “We recognize them with an award and then offer conversation about the hurdles they’re facing. That whole dialog leaves the entrepreneurs full of motivation and ideas, and ready to tackle another hurdle.”
 
The induction ceremony was held at JumpStart’s offices. Other regional companies inducted included Body Phyx, Design Flux Technologies, On Demand Interpretation Services, OrthoData and Wahconah Group.

 
Source: Ken Marblestone
Writer: Karin Connelly

Building off the buzz created by Shaker LaunchHouse, an entrepreneurial incubator, the City of Shaker Heights has partnered with LaunchHouse, Cuyahoga County and Neighborhood Housing Services of Greater Cleveland to renovate two homes on Chelton Road into affordable housing for entrepreneurs.

The homes at 3553 and 3599 Chelton Road, directly behind Shaker Launchhouse in the South Moreland neighborhood, were vacant before the city acquired them. Shaker renovated the homes using $250,000 of Neighborhood Stabilization Funds, and is now in the process of transferring the properties to Neighborhood Housing Services. The agency, which specializes in affordable housing, will own and manage them.

The houses feature a total of nine "units" (a bedroom in a shared house with ample common space) that can be rented for $395 apiece. Amenities include high-speed Internet, free utilities, a comfortable green home with air conditioning, hardwood floors, free laundry and a ceiling projector hook-up in the living room for presentations. The homes are part of a multi-million dollar investment the city has made in the South Moreland community.

"We already have more applicants than we have units," reports Kamla Lewis, Director of Neighborhood Revitalization with the City of Shaker Heights. "We wanted to create a concentrated, collaborative community -- an environment for startups in the neighborhood, but a place where they could afford to live, as well."

Lewis says the first tenants will move into the completed homes as early as this week, and she expects all nine units to be fully occupied by June 1.

Applicants must be entrepreneurs at Shaker LaunchHouse. Its accelerator program begins this summer and has attracted entrepreneurs from outside of Northeast Ohio, who move here while engaged in starting their companies.

Lewis says the project is the first of its kind that she is aware of, and that the city's investment in South Moreland has already attracted further private investment, including several new businesses and a new $5 million apartment complex.


Source: Kamla Lewis
Writer: Lee Chilcote

On Thursday, May 2, Bad Girl Ventures celebrated nine finalists in its business plan competition during its spring 2013 graduation ceremony at The Galleries at CSU, announcing the winner of its $25,000 BGV loan and other awards.

Jewels Johnson, owner of the Sugar Plum Cake Company, earned the $25,000 loan for her custom cake bakery. She plans to use the loan to open and expand her new physical store and offices, as well as develop her Devour! Gourmet Baking Mixes line.
 
“We were very impressed with her approach and creativity,” says Reka Barabas, director of BGV Cleveland. “Jewels was super-energetic during the entire course. She went the extra mile and followed up.”
 
The nine women-owned businesses spent nine weeks in BGV’s business course, hashing out their business plans and tweaking their businesses. The class culminated with the participants giving a 60-second pitch to a selection committee.
 
In addition to the grand prize, Su Nimon of Journey Art Gallery and Kelli Handley of The Agrarian Collective each received $5,000 loans from a private giving circle. It was also announced that Jillian Davis of Toast Wine Bar, a BGV Fall 2012 finalist, received a loan from BGV partner the Economic Community Development Institute (ECDI).
 
“All of the finalists are impressive because of their huge passion in what they do,” says Barabas. BGV will continue to work with its partners in the upcoming weeks to help the other finalists secure business loans.
 
BGV will be accepting applications for its fall business class from June 1 through Sept. 1.

 
Source: Reka Barabas
Writer: Karin Connelly
 

Cleveland rocks, that much we know. But it also is home to a band of crafty individuals who make music in a more physical sense, by building the instruments others use to play beautiful music. Guitars, amps and pipe organs all are handcrafted by passionate peeps right here in town.

Project and Construction Services provides owner's representation and design-build services to clients, so it's appropriate that the growing 53-person firm custom-built its new offices. Now that it's settling into its new space in the Erieview Tower, executives are experiencing their Goldilocks moment: Just right.

"We decided to right-size our space for our present needs, forecasting into the future," says CEO Bob Strickland, who downsized from 12,500 to 10,300 square feet -- despite adding staff -- by designing the space efficiently. "We have staff that come in from the East Side, West Side and Akron, so we've found downtown serves our needs the best, and we enjoy the vibrant downtown atmosphere."

The new 21st floor headquarters offers views of the lakefront and a kitchen outfitted with pendant lights from Ohio City-based Glass Bubble Project. Strickland and his wife recently moved to Tremont after living for 28 years in Mentor, and they've become big fans of the eclectic glass blowing studio behind the West Side Market.

PCS right-sized its offices by reducing conference rooms and support areas, creating a "huddle space" in the lobby that can be used as a meeting space, and reducing the number of storage, IT and work rooms. The office includes open work stations to accommodate future growth. Strickland says designing offices more efficiently has become a major trend in 21st century workplace design.

PCS looked at a number of spaces downtown but selected Erieview because of the potential to customize the space within an existing shell. The firm worked with owner Werner Minshall and HSB Architects on the design and buildout. Strickland says that being in the NineTwelve District is a plus, as the area has recently gained new restaurants and employees enjoy the food trucks on Walnut Wednesdays.

The company is working on a number of projects in Cleveland currently, including the Victory Building, W. 25th Street Lofts and Residence Inn. The company has offices in Wheeling and Charleston, West Virginia, with 26 staff downtown.


Source: Bob Strickland
Writer: Lee Chilcote

Abode, developer of the Clifton Pointe Townhomes in Lakewood, is set to break ground on the next phase of the project. As soon as this month, the company could break ground on an additional five units to complement the 17 that have already been sold.

Principal Andrew Brickman says that buyers are drawn to the high-quality, green-built construction, the walkable location in the West End of Lakewood, and the views of the Rocky River Valley and Lake Erie. "I wish we could build another 30 of them," he says. "I think we could sell them."

The five units that are planned have drawn the ire of some local residents. About a dozen attended a recent Lakewood City Council meeting to protest the developer's request for a zoning change to allow townhomes, as well as the 10-year tax abatement.

The Lakewood Planning Commission recently unanimously voted to approve the rezoning and the project now moves to the regular council meeting for a full vote.

Brickman claims Abode is set to break ground on Phase II even though Phase I is not finished. All Phase I units are sold, but construction work is not complete and they haven't yet closed. He attributes his confidence in the market to the buyer response to Phase I, as well as the increased number of buyers in the market.

"Our buyers are people who put a high premium on lifestyle, who want open space for entertaining and no-maintenance living," he says. "They're people who get it. They're people who aren't waiting in line for an hour and a half at the Cheesecake Factory to eat a mediocre meal. I have a couple coming all the way from Solon, another from Chagrin Falls. They're coming because the product is unique."

The units feature classic modernist design, sunken living rooms with high ceilings and large windows, living-level decks and roof decks. They are priced from $379,000 for a two-bedroom, two-and-a-half-bath unit with 1,770 square feet. Phase I offered a 10-year, 100-percent tax abatement on the improvements.

Brickman says his project is a chink in the armor of urban sprawl. "We’re trying to turn around the trend, bring people back to the core and walkable neighborhoods."

Abode is working to obtain bank financing for Phase II. Brickman says that he is seeing more and more buyers wade into the housing market this year. He and his partners are also shopping around Cleveland for another development project.

As for whether or not prices will go up with Phase II, he just says, "We're trying."


Source: Andrew Brickman
Writer: Lee Chilcote

With downtown Cleveland's office vacancy rate three percent lower than it was two years ago and vacancy rates hovering around four percent for apartments, new retailers are leasing empty storefronts in the area. Eleven new retailers will open this year, bringing fresh concepts to the local scene.

New offerings include Cleveland Chop in the former Cleveland Chophouse location on St. Clair, Mirch Masada, Red the Steakhouse, four new shops in the Fifth Street Arcades, Walk in the Park Cafe, Table 9 Martini Lounge and Market Creations Cafe.

Michael Deemer, Vice President of Business Development and Legal Services for Downtown Cleveland Alliance (DCA), cites Walk in the Park and Table 9 as two examples of downtown's resurgence. "We're seeing the area around Perk Park in the NineTwelve District attract new investment in long-dormant retail spaces formerly occupied by One Walnut and the Atlanta Bread Company," he says.

Although Red the Steakhouse isn't slated to open until late summer or early fall, Walk in the Park and Table 9 could open within the next month, Deemer says.

It's a sign of the market's health that empty spaces are being filled. "Cleveland Chop is being reopened by the original owner of Rock Bottom Brewery," he says. "It really does speak volumes that as places like Cleveland Chophouse and Bricco close and are in need of freshening the concept, they're reopening right away."

"There was a lot of concern initially when Cleveland Chophouse closed, but we knew... that there were literally dozens of inquiries as soon as the news hit."

Although office vacancy increased slightly in Q1 2013, Deemer says this is because of Eaton's departure. "We've had 25 new businesses move into downtown committing over 4,000 new jobs in the last two years," he says. "Retailers are responding exactly how we would expect them to, following where the people are."


Source: Michael Deemer
Writer: Lee Chilcote

PlayhouseSquare already is a gem in the crown of downtown Cleveland, yet its sparking renaissance will become even more breathtaking with the addition of a 20-foot-tall LED "chandelier spectacular" at E. 14th and Euclid in the theatre district.

That chandelier, boasting over 4,600 crystals and hoisted 40 feet in the air, is the centerpiece of a $16 million transformation that will bring the beauty found inside PlayhouseSquare's historic theatres out onto the streets of the district.

The project will also feature new electronic signage and lighting, gateway entry points to define the neighborhood, and the addition of a full-service cafe and state-of-the-art outdoor stage to the Star Plaza outdoor space. The district will gain some of the drama found in Times Square in New York City and Millenium Park in Chicago while retaining the elegant, historic character that's uniquely Cleveland.

"We believe this will be transformational," says Art Falco, President and CEO of PlayhouseSquare. "It's not just a district anymore, it's a neighborhood. We see it as an economic development project as well as a physical enhancement project. It will draw more office tenants and spur more residential and retail development."

The project was designed by the experiential design firm The Barycz Group, which has completed similar projects in Chicago, Las Vegas and Dubai.

PlayhouseSquare has not yet raised all of the funds necessary to complete the project, but Falco expressed confidence in the project's success. Star Plaza is already under construction and work will be completed in time for a slew of summer events. The remainder of the project will be completed in 2014. Public-private partnership, naming rights and philanthropic contributions will fund it.

"We feel we're going to set a very high level of design standard," he says. "I think that others who follow us will be compared to us."


Source: Art Falco
Writer: Lee Chilcote

Danny Sheridan comes from a family of entrepreneurs -- his father invests in small tech businesses and deals in commercial real estate for medical officers, and his mother is a marketing consultant. So it was only natural that the junior at Beachwood High School would start his own business. After finding he had a knack for selling things on eBay, Sheridan started Woodside Distributors, distributing energy efficient LED lights for Solon-based Mr. Beams.
 
“Mr. Beams didn’t have a lot of eBay, but I was really good at eBay,” says Sheridan. “When I ran into them I immediately was able to distribute their products online. I was able to add my area of expertise, and now we’re on Amazon and other places.”
 
Sheridan’s business has quadrupled in the past few months and he expects to reach $100,000 in sales by the end of the year.
 
Sheridan, who is president of the Beachwood High School Business Club, set up a booth at Entrovation on April 19 to showcase his company and the products he distributes. “There were a ton of people -- 1,000 or so -- who just came by to say hi,” he recalls. “The biggest reaction was, ‘Hey, you’re just a kid.’ Then it was, ‘Wow, he’s actually selling.’ I was fortunate; I made a few hundred bucks that day.”
 
In fact, Sheridan won the Innovative Entrepreneur of the Year award, sponsored by the Burton D. Morgan Foundation. He received the top prize of $3,000. “I’m excited to buy more inventory and expand even faster,” he says.
 
Sheridan’s business is growing so fast, he’s looking for new fulfillment options. “I’ve been using Amazon to do more fulfillment,” he explains. “But it’s getting to the point I can’t ship from my house any more. The mailman can’t keep up.”

 
Source: Danny Sheridan
Writer: Karin Connelly