Entrepreneurs + Innovators

cowork cleveland launches in former ohio city firehouse
To tap into demand for affordable yet professional office space from local start-up businesses, two local entrepreneurs have kicked off 2012 by opening a new shared workspace, Cowork CLE, in a decommissioned Ohio City firehouse.

“Meeting clients at Starbucks can get old; we offer a more professional setting,” says Emmett McDermott, who has partnered with Graham Veysey of North Water Partners, a video production company, to launch the 1,000-square-foot space on W. 29th Street. McDermott also owns 12five9, a web development firm.

Their pitch goes something like this: Are you a solo entrepreneur? Are you tired of working from home or fighting for an outlet at your local coffeehouse? Renting a desk at Cowork CLE can be as little as $250 per month. There's an airy, light-filled room with refinished hardwood floors, high-speed wireless, live Twitter feed on a flat-screen TV, conference room and even a private phone booth.

McDermott and Veysey visited similar coworking spaces in other cities, including Chicago, before they decided to launch Cowork CLE. “This is something that’s become popular in bigger cities,” says McDermott. “We chose Ohio City because it is an artisan neighborhood. We believe our clients are creative, independent artisans who are yearning for a collaborative environment."

The owners of Cowork CLE hope that the space will function as a kind of entrepreneurial incubator. By developing relationships in a shared work environment, their customers will be able to share useful information, help each other grow and eventually even refer business to one another, they say.

“We’re hoping people will make connections,” says McDermott.
Veysey, who owns the firehouse building, has also leased space to Rising Star Coffee Roasters, which will open Cleveland’s first “brewbar.” Rising Star will offer bags of beans for sale and also brew coffee by the cup. This will offer entrepreneurs here the best of both worlds -- a functional work environment and a downstairs coffee shop where they can easily get their caffeine fix.

Cowork CLE is located at 1455 W. 29th Street.


Sources: Emmett McDermott, Graham Veysey
Writer: Lee Chilcote
indian-born entrepreneur launches international business center in st. clair superior
At the end of last year, Indian-born entrepreneur Radhika Reddy launched Ariel International Center, a one-stop shop for international business development in Northeast Ohio. Located in the former Leff Electric Company building on E. 40th Street, the 100-year-old warehouse with solid brickwork and rough-hewn wooden beams is being refurbished to support this decidedly 21st century venture.

“We offer shared international services for companies that want to locate here and do business globally, and we also help local companies with global potential,” says Reddy, who arrived in Cleveland 21 years ago with little more than a visa and $20 in her pocket, yet has since adopted Northeast Ohio as her home.

The successful businesswoman is one of three women behind Ariel Ventures, an economic development finance firm with $1.5 million in annual sales. Reddy says she wants to grow Cleveland's economy by helping businesses to gain global reach.

“We want to help them with business growth and act as their back office,” she says. “Services that we offer include accounting and finance, international business development, tax advising and export and import documentation.”

Ariel International Center, whose new, four-story home has large windows offering views of downtown and Lake Erie, will also host a fourth floor event space that is geared towards Cleveland’s immigrant community. Once renovations are complete, Reddy also hopes to land an international-themed restaurant that will become a destination spot for the downtown lunch crowd.

“Entrepreneurs like me are always thinking of what’s not there,” she says.

The project received support from the City of Cleveland’s Vacant Properties Initiative as well as a low-interest economic development loan from the city. Reddy says that it is approximately 50 percent self-financed by Ariel’s partners. The 100 percent women-owned firm will move its offices here by February 1st.


Source: Radhika Reddy
Writer: Lee Chilcote
the year in mastheads
While we pride ourselves here at Fresh Water in having crisp, professional prose, the truth is, without art, a feature is just font on a page. Pictures tell a thousand words, we're told, but the best ones simply leave us speechless. Every masthead and feature image since we launched this pub over a year ago has been shot by Fresh Water shooter Bob Perkoski. Here is a collection of some of his finest work.
golf and motorcycle enthusiast solves transport riddle with innovative travel tube
Tom Gillespie enjoys riding his motorcycle and he loves outdoor activities like golfing and camping. The problem he had was how to transport his gear while on his bike. When he couldn’t find anything that solved his problem, the environmental consultant took things into his own hands and invented The Travel Tube, a hard plastic case that holds golf clubs, fishing gear, firearms and any number of objects. The portable case attaches to a motorcycle or just about any vehicle. 

“I kind of had it rumbling around in my head for a while,” Gillespie says of the concept. “I couldn’t find anything like it. So I wrote a patent and took my rudimentary drawings to a manufacturer. After I had the prototype for the Travel Tube I put my golf clubs in it, put it on the back of my motorcycle and rode to Chicago.”
 
The Travel Tube is lightweight -- only about seven pounds -- is water-resistant, and its hard shell allows it to be checked on airplanes or shipped through the mail. Gillespie took his prototype to COSE’s Cleveland Shark Tank Pitch Contest -- and won. He is now in full production, filling orders for 50 units, each selling for $99. He also is working on a variety of accessories.
 
Gillespie has a storefront in Ohio City. As he ramps up production and sales, he plans on hiring some salespeople and at least one person to manage the phones.

 
Source: Tom Gillespie
Writer: Karin Connelly
get well soon: a new breed of fitness entrepreneurs want to whip c-town into shape
"Wellness" might sound like the latest corporate buzzword. But a growing number of local entrepreneurs have begun incorporating the concept into a new breed of anti-corporate gyms that cater to health-savvy urban professionals. In recent years, indie gyms and studios have sprung up in Ohio City, Tremont, St. Clair Superior and other neighborhoods not served by large fitness chains.
yellowlite sees blue skies ahead for growing solar panel company
Residents of Northeast Ohio are beginning to think of new ways to reduce energy consumption and save money on their utility costs. Cleveland-based YellowLite is helping people do that with its custom-designed solar panels for both residential and commercial uses.
 
“We wanted to find out how we can give back to the community and do something good,” explains YellowLite president Azam Kazmi. “When we started two and a half years ago, the economy was a lot slower and it got us thinking that energy is such an issue. Solar just sounded like such a good technology to solve our energy needs.”
 
YellowLite has a staff of dedicated people who educate customers on the benefits of solar power, from how to receive grants and tax deductions to the energy cost savings and 25-year warranty. “We can show you a good return on investment,” says Kazmi. “Most of the systems last about 40 years.”
 
Kazmi says solar roof systems have grown in popularity recently as consumers become more educated. “Next year is going to be a good year for us,” he says. “Knowledge of the industry has grown. The costs go down with more installers and more knowledge about the industry.”
 
Kazmi predicts YellowLite’s sales team will double in size by mid-summer of 2012, and the company plans to expand into the Detroit area.

 
Source: Azam Kazmi
Writer: Karin Connelly
lakewood's 'donald trump' buys, fixes up and leases multi-family apartment buildings
Despite its long-suffering reputation, Cleveland's real estate market seems just fine to Kosta Almiroudis, an entrepreneur who moved last year from New York City to Lakewood to revive dilapidated old apartment buildings for fun and profit. In the past year, he has bought, renovated and fully leased more than 50 once-vacant units.

"I come from a village in Greece that has a 1,300-year-old castle," says Almiroudis, whose wife's family also lives in the Cleveland area. "So I love acquiring these 100-year-old buildings and bringing them back to life."

The first project that Almiroudis tackled is a 45-unit apartment building situated on Detroit Avenue across from the former Phantasy Concert Club. When he first began visiting his wife's family in Cleveland, he was surprised to learn how affordable real estate prices were. "I sold a single-family home in Greece and had a down payment for a 45-unit apartment building," he says with a laugh.

Since then, he has bought and fixed up another 12-unit building and signed a contract for an additional 11-unit building next door. All of his properties are 100-percent leased. He says the key to being a successful landlord is purchasing distressed properties for no more than 60 percent of their current value, investing up to 85 percent of their post-rehab value and overseeing the work yourself.

Even so, getting a loan was no walk in the park. Lenders are still skittish because they're carrying bad loans from investors who got in over their heads during the boom years. Still, the only way out of the current housing mess and the surfeit of vacant, multi-family buildings is through lending to good investors, he says.

"I don't see many people doing what I'm doing now, most likely because the banks are not releasing funds for these kinds of projects," he says. "They have the money. The only way to put this neighborhood back together is with banks releasing funds. Private investors want to put money back into real estate."

Almouridis, who was weaned on interior renovation projects for the likes of Donald Trump while starting out in New  York, isn't holding his breath for an avalanche of easy money, however. Instead, he's partnering with a private investor who sees apartments as a safe bet at a time of low homeownership, high apartment occupancy and wild, tough-to-fathom stock market swings. Together, the pair intend to purchase and rehabilitate additional apartments in Lakewood.

The value-laden properties are plentiful, he says, in part because the professional children of Lakewood's middle-class landlords seem to want nothing to do with rentals. "I think maybe it skips a generation," he says with another laugh.


Source: Kosta Almouridis
Writer: Lee Chilcote
great lakes brewing continues to rack up the gold
Great Lakes Brewing Co. continues to rack up the gold.

At this year's World Beer Championships, America’s oldest international beer competition, Great Lakes snagged multiple gold medals. The Ohio City brewery's Dortmunder Gold Lager, Eliot Ness Amber Lager and Oktoberfest all took home ribbons.
 
The World Beer Championships are considered one of the top beer judging events in the craft beer industry.
 
Drink in the rest of the good news here.
amtrust financial to bring 800 new jobs to downtown cleveland
AmTrust Financial Services, a multi-national property and casualty insurer based in New York, is consolidating and relocating its Northeast Ohio operations to Cleveland. The expansion will bring 800 jobs to Cleveland over three years. The company currently employs 250 people in its operational hub in Seven Hills.
 
The decision to open offices in Cleveland came primarily from $25 million in local and state incentives. The company was able to buy the primarily vacant office tower at 800 Superior Avenue earlier this year and has committed to spending at least $20 million in upgrades to the building. But company officials also see the potential in Cleveland.
 
“We have found the governor [John Kasich], the county executive [Ed FitzGerald] and the mayor [Frank Jackson] of Cleveland all to be very cooperative and helpful in sealing our decision to locate in downtown Cleveland,” says AmTrust CFO Ron Pipoly. “We also think downtown Cleveland is on the cusp of a lot of great jobs, with the casino, the new convention center, the medical mart, the development of the Flats East Bank, a Westin Hotel downtown and other large projects that now includes AmTrust."
 
The Seven Hills employees will move to the Cleveland offices over the next three years.Based on current projections provided to the state, there may be up to 800 new jobs, in addition to the 200 jobs being relocated from Seven Hills,” explains Pipoly. The jobs will be in IT programming, underwriting and customer service.

Under current plans, AmTrust wil occupy between 250,000 and 300,000 square feet in the building, leaving a portion of the total 450,000 square feet available for other new downtown tenants. 

 
Source: Ron Pipoly
Writer: Karin Connelly
go media is putting cleveland on the map as hub of art and design
Go Media is Here -- and luckily for us, they're here to stay. From its studios in a nondescript three-story brick warehouse on Lorain Avenue, the creative agency is putting Cleveland on the map as a burgeoning hub of art and design. In addition to creating good work, the firm does good work, promoting people and projects that are making Cleveland a better place to live.
investohio provides income tax credit to those who invest in small businesses
This month, the Ohio Department of Development, in collaboration with the Ohio Department of Taxation, launched InvestOhio. The $100 million tax credit program helps small businesses get the funds from investors they need to grow, succeed, and create jobs.
 
“We were hearing from small businesses here in Ohio that they were having trouble getting access to capital,” explains Matt Sutherland, senior tax incentive specialist with the Ohio Department of Development. “The program creates incentive for investors to invest in small business.”
 
Through InvestOhio, investors can invest up to $10 million in eligible small businesses in exchange for a 10 percent income tax credit for investments held for two years. Eligible small businesses must have less than $50 million in assets or less than $10 million in annual sales.
 
There are 900,000 small businesses in the state. Investment in small business through this program is expected to generate $1 billion in new private investments in small businesses by 2013.

“There are a lot of small businesses waiting to take off, and we’re happy InvestOhio is the catalyst to move forward,” says Sutherland. “If every small business added even a moderate number of jobs it would be a significant impact on Ohio’s economy.”

 
Source: Matt Sutherland
Writer: Karin Connelly
city, npi and parkworks debut reimagining cleveland, $1m push to green city
The City of Cleveland, Neighborhood Progress Inc. (NPI) and ParkWorks recently launched ReImagining Cleveland II, a $1 million push to fund sideyard expansions, vacant lot beautification, and market gardens in Cleveland. They hope the program will improve vacant land, enhance local communities and further green the city.

"In a city like Cleveland, rebuilding the housing market really means taking down bad houses and reclaiming vacant land," says Bobbi Reichtell, Senior Program Officer with NPI. "We're focusing the sideyard expansions in areas where there are already a number of other things happening, such as Model Block programs and the Opportunity Homes rehab program, so that we can get a real impact."

Reichtell anticipates two-thirds of the funding will go to yard expansions, while one-third will go to stabilization projects like market gardens, wildflower gardens and vineyards. Over 50 applicants have already applied for sideyard expansions, while 16 stabilization sites have been identified. Funding will be used to clean, grade and fence properties before they are transferred to their new owners.

Reichtell also stressed that the city has a formal application process, and that it retains sites with critical short-term development potential. Owners with code violations or tax delinquencies cannot be accepted into the program. Applicants must also invest some of their funds to acquire a lot or create a project.

Lilah Zautner, Sustainability Manager with NPI, says the reaction to the program differs radically depending upon the individual and where they live. "Some view sideyard expansion as the suburbanization of the city, while others view it as homesteading -- they're adding gardens, pools, gazebos and more."

Since the program launched, there's been no shortage of applicants. "We've had an overwhelming response so far, but we are still accepting applications," she says.


Source: Bobbi Reichtell, Lilah Zautner
Writer: Lee Chilcote
new cle clothing shop acts like de facto gift shop for city visitors
Mike Kubinski is positively full of holiday cheer. The co-founder of CLE Clothing Company, known for its funky, Cleveland-themed T-shirts and other apparel, just quit his day job and opened a new store at E. 4th and Euclid in downtown Cleveland. Since the venue opened just in time for Black Friday, it's been flush with visitors.

Kubinski's new apparel shop also is a big, fat present to Cleveland. Bearing the catchy slogan "Spreading Cleveland pride one T-shirt at a time," CLE Clothing has brought a fresh, new concept into retail-starved downtown Cleveland.

"Ari [Maron] really didn't want another restaurant; he wanted retail," says Kubinski, who hurried together the store concept after being recruited earlier this year by Maron, a principal of developer MRN Ltd. "It was a good fit because we offer something cool, positive and different from what's already there."

The downtown CLE Clothing outlet actually is the company's second store; the first, called Native Cleveland, is located on Waterloo in North Collinwood.

"We built our business online first, but then we had an overwhelming response when we did pop-up stores," says Kubinski. "We opened Native Cleveland as a test, and then Ari Maron approached us about a store on E. 4th Street."

The new store is located adjacent to Positively Cleveland, the travel and tourism agency for Northeast Ohio. A passageway allows visitors to travel between the two locations.

"We sort of act as the gift shop for people visiting downtown Cleveland," says Kubinski. "It's a cool relationship that's just beginning."


Source: Mike Kubinski
Writer: Lee Chilcote
small-biz employment grows during holidays, perhaps a sign of good things to come
The November CBIZ Small Business Employment Index (SBEI), a barometer for hiring trends among companies with 300 or fewer employees, increased by .35 percent in November. While the trend reflects companies surveyed across the country, “a good number of the survey respondents are from the Cleveland area,” says Phillip Noftsinger, business unit president of CBIZ Payroll Services.

While the trend is typical for the holiday season, Noftsinger is optimistic that the increase may lead to future job growth. “I think this time of year we would expect to see growth during the holiday season,” he says. “But we’re hoping a strong holiday season will support a longer term trend in these numbers. It’s a little early to tell though.”
 
A good holiday shopping season has the potential to continue into the new year. “Strong consumer spending sustains growth,” says Noftsinger. “We hope to see a continued strong holiday season, which leads to income growth and labor growth and an upward spiral in employment.”

 
Source: Phillip Noftsinger
Writer: Karin Connelly
ny times calls uptown new downtown of university circle
A recent article in the New York Times titled "Cleveland Turns Uptown Into New Downtown," written by Keith Schneider, lauds the emerging Uptown arts and entertainment district in University Circle.

With the goal of "rebuilding the city’s core according to the new urban market trends of the 21st century -- health care, higher education, entertainment, good food, new housing and expanded mass transportation" -- the new Uptown project is becoming the new downtown for University Circle.

"When it is finished next year, the new $27 million Museum of Contemporary Art, designed by Farshid Moussavi, will perch, like a lustrous black gem, at the entrance to the district, at Euclid and Mayfield Road. A pedestrian plaza designed by James Corner Field Operations, a designer of the High Line elevated park in New York City, separates the new museum from two four-story, mixed-use residential buildings under construction on the north and south sides of Euclid."

“There are 5,000 more jobs here than in 2005,” Chris Ronayne, president of University Circle Inc., is quoted in the story. “About 50,000 people work here. The number of residents grew 11 percent since 2000. And there are 10,000 people who live here now.”

Read the rest of the good news here.
valerie mayen to open sewing co-op to help local designers flourish
Valerie Mayen of Yellowcake, a fashion designer who became the poster child for Cleveland's nascent design industry after she appeared on Project Runway, will launch a nonprofit sewing studio to push the city's young talent into the spotlight.

The new loft studio, which is called Buzz and Growl, intends to offer work space, professional equipment, coaching and classes to young artists and entrepreneurs. It is located at 1400 East 30th Street in the St. Clair Superior neighborhood. Mayen is raising funds and plans to open the space sometime next year.

"I see a lot of artists that are making products here, but they're not saleable yet," says Mayen. "This is about helping them to hone and polish what they have, so they can become reputable businesses and sustain themselves in Cleveland."

Mayen says that Buzz and Growl already has a waiting list for new members. So far, she has raised $11,000 towards the costs of renovating the studio, and has invested some of her own resources as well. Mayen and her cohorts now hope to raise an additional $15,000 to purchase equipment and open the doors.

"This is the hard part, the frustrating search for money," says Mayen, who will serve as the Executive Director of Buzz and Growl. "Yet we've been able to attract grassroots support because people know this is about creating jobs."

To that end, Mayen is hosting an invitation-only "friendraiser" at Buzz and Growl's new studio on December 8th. Despite the challenging hunt for grant dollars, she is confident that the city will support this fledgling effort.

This year, Mayen hired several new employees for her business and opened and closed a series of pop-up stores. Beyond Buzz and Growl, she wants to launch a permanent Yellowcake shop in Ohio City or Detroit Shoreway by Fall of 2012.


Source: Valerie Mayen
Writer: Lee Chilcote
cleveland heights hopes to land development deal for prime cedar-lee parcel
The City of Cleveland Heights has released a Request for Development Proposals (RDFP) that it hopes will lure new office space, jobs and tax revenue to the inner ring suburb. The city is asking for development ideas for a 39,000-square-foot parcel at Lee and Meadowbrook roads in the heart of the Cedar-Lee commercial district. Responses are due in January.

Given that two high-end condo projects proposed here in the mid-2000's never came to fruition, the city evidently is hoping the third time's the charm. After the demise of these projects, the city land-banked the site, tearing up the asphalt parking lot and planting grass.

Yet Howard Thompson, the city's Director of Economic Development, says there is reason for optimism in the city's new approach, which is more broadly focused on economic development rather than pinpointing for-sale housing.

"I see the growth happening in University Circle, and I want to tap into that," he says. "There are healthcare and technology professionals living in Cleveland Heights, and my goal is to drive business development opportunities here."

Although this streetcar suburb is isolated from highways, Thompson says it enjoys many locational advantages, including its walkable, urban streetscape and amenity-rich environment. "Areas like MidTown are still at the beginning stages, yet here you have 27 different restaurants directly around you," he says.

The city also owns a 377-space parking garage directly behind the project site, 82 spaces of which are dedicated towards whatever building is ultimately developed.

As for public-private partnerships, Thompson says that the City of Cleveland Heights is ready to provide assistance if it is needed. "We're asking developers to spell out in their proposals what kinds of assistance they'd be asking for."


Source: Howard Thompson
Writer: Lee Chilcote
two local orgs commit $3.2 million to train young entrepreneurs
The Burton D. Morgan Foundation in Hudson and the Blackstone Charitable Foundation have committed $3.2 million to train area young entrepreneurs through Blackstone LaunchPad, a venture coach program developed at the University of Miami, Florida in 2008.
 
Students, faculty and alumni at Baldwin-Wallace College, CWRU, Kent State and Lorain County Community College will have the chance to participate in the program, which takes applicants from idea to full-fledged business.
 
“A lot of schools around Northeast Ohio have strong entrepreneurship programs, but there’s an experiential gap for the students,” says Deborah D. Hoover, president and CEO of the Burton D. Morgan Foundation. “There are a lot of really good ideas simmering on campuses but the commercialization is lacking. This program will help with that.”
 
The Blackstone LaunchPad was first started in Detroit in 2010 at two colleges. The program provides participants with advice, mentors, resources, counsel and networks necessary to get their ideas started. Since 2008 Blackstone LaunchPad has generated 65 start-up ventures, 120 new jobs, and drawn nearly 2,000 student participants.
 
“One of the reasons they selected Cleveland was they are looking at regions being hit hard by economic downturns,” says Hoover of Blackstone’s decision. Participants will be selected in early 2012 and be in full swing by fall.
 

Source: Deborah D. Hoover
Writer: Karin Connelly
 
 
edgy greeting card company taking root across country
Kendall Embrescia’s greeting cards get to the point of the sentiment -- but usually not in the traditional way. As chief creative officer and “head skootcher” at Squirt & Skootch, Embrescia produces cards that are edgy, funny, off-the-wall and well received.
 
The idea for Squirt & Skootch was originally conceived in 2009 by Embrescia and a friend who wanted to start a business that united their love of writing, creativity and travel. The peculiar name is based on their childhood nicknames.

“One of the universal things I found when I traveled was mail,” recalls Embrescia. “No matter where I was I would send a postcard.”
 
So, in fall 2009, "Squirt" and "Skootch" gave their cards a trial run at the Tremont Arts Festival. Boasting sayings like “I have a heart on for you” and other spicy sentiments, the cards were very well received.
 
Then Squirt moved on and Embrescia’s friend Sandy Hridel joined the team. The two hit some stationary shows and developed a full line of cards, covering categories that ranged from Love and Sex to Holiday and Encouragement. Embrescia and Hridel formally formed an LLC in fall of 2010, hired Embrescia’s niece Kendra Kwasniewski to illustrate the cards, and got a crash course in running a business.
 
“We started identifying places that would sell our cards, cold calling people and walking into stores to sell our cards,” says Embrescia. “I’m a really creative person and learning the business stuff was really intense.” But the hard work paid off. Today, Squirt & Skootch can be found in stores around Northeast Ohio, as well as in Pittsburgh, Chicago, New York, Los Angeles and Colorado.
 
The company plans on hiring a web developer and some salespeople to go after mid-sized retailers. “Growth is certainly key,” says Embrescia. “We’ve been able to be creative and build an infrastructure, but now the emphasis is on growth.”

 
Source: Kendall Embrescia
Writer: Karin Connelly
ohio city inc aims to direct w. 25th street's momentum onto lorain
At a recent community meeting for Launch Lorain, a grassroots planning process to plot the future of that street, Ohio City advocates eager to push W. 25th Street's development onto gritty Lorain gave a cry akin to Westward Ho!

Yet they were met with beleaguered skepticism by residents and business owners who believe more attention should be paid to basic safety and city services. Other attendees expressed the viewpoint that attracting residents and businesses to the area would create an engaged constituency that demands more from the city.

“When my building got broken into, the police came and told me this is what I get for living in this neighborhood,” said David Ellison, an architect who is rehabilitating a building at W. 41st and Lorain. “Before we look at adding fancy crosswalks, the city needs to fix the basic things such as potholes and crime."

"The best thing that we can do to create a safer Lorain is to get people there for the right reasons," countered Eric Wobser, Director of Ohio City Inc.

Planners believe they can breathe new life into Lorain by improving its streetscape, targeting empty buildings for redevelopment, and creating new housing. The street has the right retail fabric to become the community's main street and spur redevelopment south of Lorain, they argue.

"If you want to live on W. 25th Street, get in line," said Ward 3 Councilman Joe Cimperman. "We need to pull the energy of W. 25th Street up Lorain."

The three-day planning process included meetings with stakeholders and businesses, a group walk through the neighborhood at night and a chili cook-off at Palookaville Chili, one of a handful of new businesses that recently moved into the area. Now that the initial process is complete, planners will continue to gather input as they prepare a new strategic plan for the area.


Sources: David Ellison, Eric Wobser, Joe Cimperman
Writer: Lee Chilcote