Entrepreneurs + Innovators

graystone plans to spend $9-12m to ready 158k square feet of office space
The developer of a fast-growing entrepreneurial village on the eastern edge of downtown is planning a $9-12 million investment that would add nearly 160,000 square feet of office space. Michelle Asher of Graystone Properties, which owns the mammoth Tyler Village complex at East 36th and Superior, says that regional growth in the biotechnology, software development, multimedia design and film industries prompted the bullish move to ready new space for additional tenants.

"We have an eclectic mix of tenants, and we draw creative people," says Asher. "We're somewhere between downtown and a suburban office park, and we have amenities such as a fitness center, Wi-Fi, coffee shop and plenty of parking."

To facilitate the build-out, which Asher hopes to complete within the next 18 to 24 months, Graystone is working with the City of Cleveland to apply for a $4 million state Job Ready Sites grant. The city is also considering providing $700,000 in low-interest loans, $180,000 of which can be forgiven if requirements are met.

"The space we have now is not in move-in condition, and the Job Ready Sites grant will help us to develop more tenant-ready space," says Asher.

Graystone plans to demolish the interior of what is known as Building 42 at Tyler Village, replace its existing windows and build out contemporary, loft office space. The company aims for the project to meet the highest green building standards, a mandate of the Job Ready Sites grant program of the State of Ohio.

Tyler Village was originally home to the W. S. Tyler Company, which built elevator cabs in the sprawling, one-million-square-foot complex. Graystone purchased the property in 2005 and has since demolished older buildings that could not be refurbished and renovated other buildings into market-rate office space.


Source: Michelle Asher
Writer: Lee Chilcote
shaker's cell-a-spot marries advertising with cell phone apps
Steve Orlando wants to make cell phones free for all. He plans to do that through advertising. The CEO of Cell-A-Spot started the company in 2009 with the idea of selling ad space for cell phone apps and the concept has been growing ever since.
 
“We essentially are implementing advertisements in mobile phones,” Orlando says. “It started with a couple of ideas, but when we got our first customer we created our first app.”
 
Cell-a-Spot has created patent pending technology that couples a one-to-one interactive targeting for advertisers with the ability to generate revenue streams for mobile providers. Cell-A-Spot’s first app builds ads into a cell phone’s 411 service. Instead of paying for 411, the costs are offset by ads.
 
“Say you call 411 to search for pizza places... Ads for places like Pizza Hut will come up,” Orlando explains. “A lot of plans right now charge a fee to call 411. The way we built this app, it’s free.”
 
Orlando moved his business into Shaker LaunchHouse last April and has found the resources there to be invaluable in growing Cell-A-Spot. They became a LaunchHouse portfolio company about a month ago. “We’re lean, we’re small and we are able to keep our overhead really low,” he says. “Working in LaunchHouse, we get a lot of resources there.”
 
As Cell-A-Spot grows Orlando plans to build a full staff, from a sales team to accountants and administrative assistants. “My goal is to in three to four years have 12 employees,” he says. “But maybe we’ll get to 40 or 50 employees.”


Source: Steve Orlando
Writer: Karin Connelly
inspiring video promotes downtown cleveland lifestyle in fresh light
The latest salvo in Downtown Cleveland Alliance's campaign to get more folks to live, work and play downtown is this video titled "Downtown Cleveland... Is It For You?" Produced by Fusion Filmworks and TWIST Creative, the video has attracted over 9,300 views in under a week.

i-x center plans to invest $25-30m in physical upgrades
The I-X Center has launched plans to invest $25 to $30 million in renovations that will enhance its ability to host consumer mega-shows such as the Fabulous Food Show and International Beer Fest. Planned improvements include upgrading food and restroom facilities, adding a third lane to the main access road, and expanding the paved parking areas.

“Our goal is to grow attendance and become even more of a destination venue,” Robert Peterson, President of the I-X Center, said in a release. Peterson noted that the I-X Center has invested more than $75 million over the years.

The I-X Center, which was originally built as a B-29 Bomber plant and later became a tank plant, has become increasingly active in producing its own shows. One example is the Food Show, which draws visitors from as far as New York and Florida to see nationally renowned chefs, including Cleveland's own Michael Symon.

Other successful new shows include the International Beer Fest, Trick or Treat Street, and the Great Big Home and Garden Expo, which returns in February.

The construction of the Medical Mart and Convention Center in downtown Cleveland will only add to the region's ability to draw visitors and generate exciting events, Peterson said. The two facilities serve different market niches.

The I-X Center is one of the largest trade show and exhibition centers in the country, and employs nearly 1,000 people for its shows and events.


Source: Robert Peterson
Writer: Lee Chilcote

gotta groove records gets buzz in new york times
Cleveland's Gotta Groove Records was featured recently in the New York Times as the subject of its recurring "You Are Here" column.
 
Titled "Building a House of Wax in Cleveland," and written by David Giffels, a former Akron Beacon Journal columnist and author of "All the Way Home," the essay showcases one of the few manufacturers of vinyl records.
 
"In the heart of postindustrial Cleveland, in one of those cheery urban-reclamation areas with freshly painted brick buildings and almost unnaturally green lawn spaces, you’ll find Gotta Groove Records, one of around 20 plants in the United States that still press vinyl," Giffels writes.
 
Located in Tyler Village, Gotta Groove was started by former corporate attorney Vince Slusarz. As for why he chose to start a vinyle record company in the digital age, Slusarz said, “All these kids getting into vinyl for the first time -- I think it’s a reaction to the constant interruptions in our life. We’re used to instant everything. But to listen to a record, you have to put it on, you have to turn it over. It engages you more.”
 
Read the rest of Giffels' piece here.
 
Read a Fresh Water feature on Gotta Groove here.
msnbc calls melt's monster 'crazy gut-buster'
If you were unaware, October 25th is National Greasy Foods Day, a holiday either filled with fatty foods or, more likely, wholly ignored by the entire population. Regardless, our fun-loving fatty foods provider Melt Bar & Grilled was honored with a mention in MSNBC's listicle of "7 Crazy Gut-Busters for National Greasy Foods Day."
 
Receiving specific mention is the Monster, a grilled cheese "sandwich" that is more test than treat.
 
"Grilled cheese might be a guilty pleasure, but you could hardly call it a grease-bomb. Unless, of course, you are talking about the grilled cheese at Melt Bar and Grilled in Ohio. There, the Melt Challenge features a grilled cheese sandwich made with 13 types of cheese, 3 slices of grilled bread, french fries and coleslaw. The plate of food comes out to 5 pounds of gooey melted cheese, deep fried potatoes and carbs galore. If you eat the whole thing, you get a T-shirt, a $10 gift certificate, and your name in the Hall of Fame, so your gluttony will be preserved for posterity."
 
Read about the other entries here.
flats forward summit inspires conversation on leveraging $2B development
More than 100 people attended the Flats Forward Waterfront Summit, held this week in downtown Cleveland. Those in attendance learned how cities as far away as Duisburg, Germany, and as close as Pittsburgh, have leveraged their historic waterfronts into magnets for recreation, investment and tourism.

Flats Forward is a one-year-old effort to create a new identity for Cleveland's historic birthplace. Planners are now focused on improving the Flats' infrastructure, transportation linkages and recreational amenities, as well as fostering a better balance between residential, industrial and recreational uses. Additionally, civic leaders hope to leverage $2 billion worth of investment taking place within one mile of the Flats to spur more development.

Following a rousing speech by Councilman Joe Cimperman that likened the Cuyahoga River's rebirth after the infamous fire of 1969 to an ecosystem's resilience following a forest blaze, leaders from Germany, England, Italy and Pennsylvania talked about their successes and the lessons they've learned along the way.

Tony Harvey of British Waterways in Birmingham, England, said that his organization has helped leverage $1 billion of investment in the region's waterway network, which dates back to the Roman era. Those waterways now attract more than 13 million visitors and 35,000 licensed boats per year.

Arne Lorz of Duisburg, Germany, described how her city rebuilt itself during an era of industrial decline by focusing on its crumbling inner harbor and building new homes, a marina, offices, retail and museums.

Roberto Bobbio, Professor of Urban Planning and Landscape Preservation at the University of Genoa, Italy, discussed how his dense Mediterranean city invested in a state-of-the-art aquarium that now is the third most visited spot in Italy.

Finally, Lisa Schroeder of Pittsburgh RiverLife Task Force told the audience that her city successfully has reinvented its industrial, long-empty waterfront into a well-connected civic space. Today, more than 15,000 kayaks are rented each year from under a bridge, and "boat-gating," she added, has replaced "tailgating."

Schroeder also offered a concise analysis of what doubtless was on the minds of many participants: "If you can use private funding to help put redevelopment plans together," she advised, "then it's easier to get politicians to fight for the public infrastructure spending that makes reinvestment possible."


Source: Flats Forward Waterfront Summit
Writer: Lee Chilcote
engage! cleveland provides a unified voice for region’s many YP groups
Cleveland’s young professionals are charged with shaping the future of the city. And while there are more than 70 organizations catering to the 15,000 young professionals in the area, there isn't one dedicated to uniting these groups to make a difference and make a change. Engage! Cleveland is striving to do exactly that.
 
“These organizations are extremely important because they integrate young professionals with the community,” says Andrew Bennett, president of the Cleveland Professional 20/30 Club. “But think about the full-time resources and coordinating all of the work they are doing. What would it look like if young professionals were fully integrated into the community?”
 
Engage! Cleveland grew out of Cleveland ConneXion, which sought to provide a unified voice for Cleveland’s YP organizations. It has continued to evolve over the past year as a forum to engage the area’s young professionals, make them want to stay in Cleveland and work at creating a thriving, vibrant business community that people actually want to be in.
 
“The private sector employers are interested in attraction and retention issues, the public and the non-profit sectors need a better understanding of what young people want. What do they really think? What do they really want?” says Bennett. “Right now there is no go-to central location to tap into the community.”
 
That’s where Engage! Cleveland comes in.

“I’m constantly asked, ‘How do I get tapped in to the community,’” says Bennett. “We’re trying to make Engage! Cleveland that hub to better enable and capitalize on all the great things happening here.”

 
Source: Andrew Bennett
Writer: Karin Connelly
cleveland claims spot on list of best cities for working moms
For the third straight year, Forbes Woman has published its list of "Best Cities For Working Mothers." New additions to the 2011 list are Cleveland and Columbus.

To determine the rankings, the magazine looked at the 50 largest metropolitan areas and compared factors such as job opportunity, earnings potential, safety, healthcare, education, and cost of living.
 
Coming in at #10, Cleveland earns high marks for featuring "lower than average cost of living, high employment rates, affordable daycare and commutes under 30 minutes."
 
Last on the list is Las Vegas, home to the second highest violent crime rate and the highest unemployment rate.

Read the rest of the findings here.
deering vintage opens new store on bustling block in ohio city
Vintage maven Cindy Deering has opened a new store that brings her eclectic array of '60s and '70s clothing and accessories to a long-empty storefront on W. 25th Street in Ohio City.

Deering Vintage, which features hardwood floors, marble countertop from its days as a flower shop, and a mezzanine for the in-house seamstress, plugs one of the few remaining retail gaps on the street. Just one year ago, the Gillespie building at Bridge and W. 25th was half-dark. Today, it is filled with a bike shop, Mexican restaurant, custom baseball bat fabricator and, now, vintage shop.

Deering, who hopes to grow roots in her current location -- describing it as her "latest and last" -- reports strong foot traffic since she opened last week. "Ever since people heard that Mitchell's was opening across the street, there's been a positive buzz around here," she says.

Her success stems in part from the fact that vintage has done well in this sour economy, drawing younger and older patrons who prefer to wear gently-used clothing. "We're kind of like the original 'green' of shopping," Deering says.

Despite the popularity of online shopping, Deering says vintage stores are still a draw. "I tried sitting in my house and selling on eBay, but I like being with people," she says. "All of our stuff is one of a kind and very personal."

Now that she's in her new location, Deering says that her loyal customers are seeking her out. "I have some longtime customers whose kids practically grew up with me, and now those kids are adults that shop at my store," she says.

Some of her recent visitors include other Ohio City business owners, who seem happy for her to join the retail mix.

"Some of my neighbors brought a bottle of wine over," she says. "The street has been very welcoming."


Source: Cindy Deering
Writer: Lee Chilcote
steel distributor chooses warehouse district as location for growing business
Jeremy Flack, a steel industry entrepreneur who started his own steel distribution company last year, likes to brag that Flack Steel is the first new steel company to locate in downtown Cleveland in quite a while. Not only did he choose the Warehouse District to locate his fledgling company, he's also a downtown resident.

"People ask, 'Does anyone still make steel in Cleveland?'" Flack says. "The answer is Yes! In fact, the decline of manufacturing jobs in industrial America is really a bit of a fallacy. Right now, there is a trend of 're-shoring' taking place."

Flack Steel doesn't actually make steel or own steel warehouses. Rather, the company uses third-party and contract warehouses to distribute to locations across the U.S., a model that allows it to be flexible and sell to facilities anywhere.

"Using the old model, we had to find a suppler in each market," Flack says. "This model allows us to provide a point of sale when others can't."

Now the one-year-old company, which is headquartered at W. 6th and Lakeside, is going through a growth spurt. Flack just hired a new sales force and is preparing for additional growth. He now employs 16 full-time staffers.

Part of what has made the company successful is the company's investment in technology. "The industry has been woefully behind in understanding technology, and people want information," Flack explains. "We've designed a website that allows people to see the price of steel -- our customers want transparency."

Flack is hoping that he can update Cleveland's reputation as a cradle of old-school manufacturing. He wants it to become known instead as a hub for manufacturing innovation. "There's an opportunity for cities like Cleveland to take advantage of trends and rebuild our manufacturing base using new technologies," he says.


Source: Jeremy Flack
Writer: Lee Chilcote
tremont electric's new product turns waves into watts
Tremont Electric is developing a new energy source with its recently patented nPower Wave Energy Converter (WEC). The four-year-old Cleveland company made a huge splash with its nPower PEG, a pint-size power plant that allows people to charge their hand-held devices while walking, running or biking. Their new product uses the waves of Lake Erie -- and ultimately larger bodies of water -- to generate commercial-scale electricity.
 
“We put it in something like a buoy and it rides the waves and is able to convert the waves to electric power,” explains Tremont Electric inventor, founder, and CEO Aaron LeMieux.
 
While other energy companies are exploring wave energy around the world, LeMieux says Lake Erie provides a great testing ground. “We can do the same thing here, but we can do it much more quickly because we can do it in a small boat versus a 200-foot research vessel,” he says. “The wave profile in Lake Erie -- higher frequency waves -- means faster test results.”
 
Roughly the size of an automobile, the nPower WEC is poised to help reinvent the manufacturing base of the Midwest into the clean energy job creator of the future.

"Our vision is to put Northeast Ohio at the top of the new clean energy economy," says LeMieux. “This is a brand new industry. It could be compared to the automobile industry.”
 
LeMieux says that jobs could be created across the board in manufacturing within the next two years as Tremont Electric secures funding and further develops the converter.

 
Source: Aaron LeMieux
Writer: Karin Connelly
competition prompts students to think about clean energy tech
In an effort to inspire area students to think about clean energy, this year's Clean Energy Challenge will be open to local college students. NorTech is heading up Ohio’s participation in the business plan contest, sponsored by Clean Energy Trust in Chicago.
 
“The point of the challenge is to institute more technology transfer out of the universities,” explains Dave Karpinski, NorTech vice president. “It’s a business plan competition that focuses on clean energy technology.”
 
Students from Ohio colleges are invited to submit their plans in five categories: renewable energy, low-carbon transportation, Smart Grid, energy efficiency and carbon abatement. Participants in the first round submit their ideas and video presentations to compete for $10,000. The top three teams from Ohio will then go on to the regional competition, where they will receive extensive mentoring and compete for $100,000.
 
“They have an intense mentoring team and help fine tune their ideas,” says Karpinski. “They get lots of support behind them to develop their ideas. That’s what’s really exciting about this competition.”
 
Although there is a cash prize involved, Karpinski says the competition is really about encouraging new ideas and encouraging students to think about clean energy technology. “It’s not about the prize, it’s that students can get exposure to the different sectors,” he says. “It’s a great and noble mission.”

 
Source: Dave Karpinski
Writer: Karin Connelly
bigBANG!, for 'maximum social impact'
Kicking off what is being billed as "A Day of Social Innovation," bigBANG! will shine the spotlight on a number of innovative local nonprofits that are benefitting our community. The day-long forum, hosted by Cleveland Social Venture Partners (CSVP) and taking place at the CSU Student Center, is the event's inaugural year.
downtown building boom attracts new four-star westin
The building boom kicking up dust in downtown Cleveland soon will give visitors to the Medical Mart, Convention Center and Horseshoe Casino another spot to lay their heads after a night out on the town. Optima Ventures and Sage Hospitality have purchased the former Crowne Plaza Cleveland City Centre hotel and plan to spend $64 million to renovate it into a new, luxurious 481-room Westin Hotel.

The project was spurred by an anticipated influx of visitors to downtown Cleveland, the developer said in a press release. "This is the perfect time for a four-star luxury hotel to be entering the downtown Cleveland market, and we expect to see strong occupancy from both business and leisure travelers," said Ken Geist, Executive Vice President and Partner at Sage Hospitality.

The developers plan to remodel all of the hotel rooms, meeting spaces and public spaces and add energy-efficient windows, a new roof and other exterior improvements. When the new Westin opens in July 2013, it will feature a high-end restaurant with outdoor dining space, a business center, fitness center and a spa. The hotel is expected to employ between 300 and 350 individuals.

The Cleveland International Fund, which operates a federal Eb-5 zone that permits wealthy foreign investors to expedite obtaining U.S. visas if they invest at least $500k in a project that creates jobs, has committed $36 million to the project. The Fund, which was also a critical force in the Flats East Bank project, is becoming an increasingly visible player in urban redevelopment.

The project will also likely be funded by a tax increment financing agreement with the City of Cleveland and the Cleveland-Cuyahoga Port Authority, as well as the sale of bonds. Both are still in the works and have not yet been finalized.

The developers plan to shut down the Crowne Plaza hotel in November to start construction.


Source: Sage Hospitality
Writer: Lee Chilcote
evergreen cooperatives prepares to break ground on $17m greenhouse in central neighborhood
Green City Growers, a for-profit, employee-owned produce company that is part of the nonprofit Evergreen Cooperatives, will break ground next week on a 3.25-acre hydroponic greenhouse. The project, which will cost $17 million and is expected to eventually create about 40 full-time jobs, will be built in an east side neighborhood so wracked by poverty it has been dubbed "The Forgotten Triangle."

The greenhouse, which is being constructed on a scruffy, 10-acre patch of land at Kinsman and Ensign in the city's Central neighborhood, will grow fresh lettuce and herbs that will then be sold to large University Circle institutions, grocery store chains, and food service companies in Northeast Ohio.

"Cleveland is one of the leaders in the nation in terms of local food initiatives, and this project fits perfectly with where Cleveland is and where it's going," says Mary Donnell, CEO of Green City Growers Cooperative. "This greenhouse project will allow us to provide local food year-round to residents of Northeast Ohio."

A recent study by the Cleveland-Cuyahoga County Food Policy Coalition found that while 37 percent of Cleveland residents say it is important that their food is grown locally, only two percent of the food purchased in the region is grown here.

In addition to selling the freshest heads of lettuce and cutting the region's carbon footprint, Green City Growers aims to employ Cleveland residents -- especially those living in Central.

"We're creating good jobs and distributing the profits back to worker-owners," says Donnell. "People are looking at Cleveland and Evergreen Coops from all over the country -- they're calling it 'The Cleveland Model.'"


Source: Mary Donnell
Writer: Lee Chilcote
eater.com runs round-up of can't-miss cleveland restos
Eater.com, a national website that covers restaurants, chefs and food personalities, recently ran an article titled "The Eater Cleveland Heat Map." A regular feature of the publication, the Heat Maps tell readers about "newish locales that have been garnering serious buzz."

For the Cleveland article, Eater's second major heat-check of the 216 in a year, the pub asked local food writer (and Fresh Water managing editor) Douglas Trattner to list 10 new places that have locals talking, drooling and, of course, eating. Singled out for inclusion are Crop Bistro, Flour, Ginko, Market Garden Brewery, Noodlecat, Orale, Barroco Grill, Luna Bakery, Dragonfly and Club Isabella.

Accompanying those listings is an interactive map.

In addition to the national version of Eater, the website features city-specific sites devoted to foodie locales such as New York, Chicago, Portland and Seattle. For now, Cleveland will have to fall under the province of Eater National.

Digest the entire meal here.
cle and other ohio cities sitting pretty as IT jobs continue to grow
While U.S. job growth overall might be stuck in neutral, IT professionals should be chomping at the bit. Experts say technology occupations will be at the leading edge of job growth for at least the next decade. Better still: Three of the hottest cities for IT jobs right now are here in Ohio.
jumpstart report shows the economic value of small start-ups
Young, tech-based companies have a major impact on Northeast Ohio’s economy. In a report created by Cleveland State University and commissioned by JumpStart, 90 startup companies generated $155 million in revenue and created 1,000 jobs in 2010.
 
“Our objective with this report is to make sure people know why entrepreneurship is important to the community,” says Cathy Belk, chief relationship officer with JumpStart. “These are all early-stage companies. There were no mature companies or public companies included."
 
The study asked nearly 200 JumpStart client companies for feedback on revenue and jobs. The survey results are based on the 90 who responded. “This report is a real benefit to the community,” says Belk. “These numbers really make that quantitative and understandable.”
 
The companies surveyed increased state and local tax revenues by $7.5 million and federal tax revenues by $10.8 million, for an overall 2010 tax impact of $18.3 million. “The companies themselves are sometimes beneficiaries of state and federal monies, and that money is being returned to the government as the companies grow.”
 
Belk sees the report as an optimistic view of the future for the entrepreneurial climate in Northeast Ohio. “This offers a lot of promise,” she says. “A lot of these companies are going to continue to grow and continue to create jobs. Imagine what this will look like in five years.”

 
Source: Cathy Belk
Writer: Karin Connelly
small business conference expected to draw 2,000 entrepreneurs
The Council of Smaller Enterprises (COSE) is holding its seventh annual small business conference on October 19th and 20th at the I-X Center in Cleveland. The event is the only one of its kind designed specifically for small business owners looking for an opportunity to learn, network and work together with other small businesses.
 
“Basically we put this together because we saw a gap in the marketplace for this kind of conference,” says Steve Millard, COSE president and executive director. “There aren’t a whole lot of places you can go as a small business owner. This two day conference is a chance to come together and be with other small business owners who understand the pressures of what they go through.”
 
The conference will feature 55 workshops on sales, marketing, HR, money, social media, technology, as well as personal and professional development. There will also be a 75-booth trade show, networking opportunities, interactive learning labs, and peer-to-peer roundtables on topics pertinent to small businesses.
 
Keynote speakers will be Daymond John, creator of FUBU and panelist on the ABC reality show “Shark Tank” and Jeffrey Rapport, a digital marketing, sales and e-commerce expert and founder and chairman of Marketspace, LLC.
 
Additionally, a panel of four local successful business owners will share their stories and the ups and downs of becoming successful. “It’s an opportunity to learn from others,” says Millard. “It’s a lot of energy, a lot of fun.”
 
The conference has earned a national reputation, and attendees have come from as far as California and Canada, says Millard. Organizers expect 2,000 small business owners to attend this year.

 
Source: Steve Millard
Writer: Karin Connelly