Regional Economy

the cutting edge: three cleveland medical innovations bound for great things
Modern medicine is constantly innovating ways to improve the length and quality of human life. Cleveland researchers are leading the way with cutting-edge treatments and technologies that can blast a brain tumor with a laser, detect a concussion using an iPad, and test for prostate cancer by way of genetics.
one person's trash = another person's treasure: creative reuse centers are on the rise
Creative reuse centers are popping up all across the nation, including Cleveland. These craft-astic places are filled with useful materials that otherwise would end up in a landfill. Adored by artists, teachers and other crafty folks, they also create green jobs, reduce waste and offer affordable supplies for projects.
bad girl ventures readies launch of fall business plan competition
Micro-lending organization Bad Girl Ventures (BGV) wants Cleveland to connect with the next generation of entrepreneurs and small business owners. That hopefully beautiful friendship will begin on Thursday, October 3, when BGV Cleveland hosts its kickoff event introducing the 10 finalists of its fall business plan competition.

The 10 women will present themselves at Battery Park Wine Bar, pitching their ideas to an audience before embarking on BGV's nine-week course to help tweak their fledgling enterprises. The final class will be in mid-November, with the winner of BGV's $25,000 low-interest loan announced during a "graduation ceremony" the following month.

Financing and mentorship are just two of the benefits for program participants, says Reka Barabas, director of BGV Cleveland.

"Networking is a huge motivating factor for them," she says. "These women are not just sitting in a stuffy classroom, but extending their professional network."

This autumn's class represents a wide range of industries and specialty areas. There's a children's party bus, granola bar company, match-making business, and more.

BGV Cleveland offers business education courses and financing twice per year to help women-owned startups launch, manage and market their businesses. In May, custom cake baker Sugar Plum Cake Company earned the business group's $25,000 loan. Two other ventures -- Journey Art Gallery  and The Agrarian Collective  -- each received $5,000 loans from a private giving circle. 

"We're exposing these businesses to as many resources as possible," says Barabas. "There's a huge value in that."

 
SOURCE: Reka Barabas
WRITER: Douglas J. Guth
noaca director touts bikes, multi-modal transportation in annual address
Speaking last week at the annual meeting of the Northeast Ohio Areawide Coordinating Agency (NOACA), the regional transportation planning agency for Northeast Ohio, Executive Director Grace Gallucci promised a more strategic distribution of money for projects and greater emphasis on multi-modal transportation options.

"We want more choices; that's what freedom -- being an American -- is about," she said. "NOACA is not trying to vilify the automobile; we're trying to attract the best and the brightest. Bicycling is increasingly popular, and more communities are integrating bike plans. Americans are driving less for the first time in a generation, and that trend is clearly led by the Millenial generation."

NOACA also has launched a far-reaching plan to assemble information on the condition of every highway, road and street in five counties, and use this information to make objective decisions about transportation spending. "Making decisions in an objective, data-driven way is more important now than ever. If there ever was a time to make decisions make economic sense, the time is now."

Gallucci touted NOACA's new Regional Bicycle Transportation Plan, a $15 million investment in the City of Cleveland's W. 73rd Street Extension Project and the Clifton Boulevard streetscape project among NOACA's recent, big ticket investments.

Peter Rogoff, Federal Transit Administrator, gave the keynote address. He argued that transit-oriented development projects can spark urban revitalization if done right, citing Cleveland's bus-rapid transit along the Euclid Corridor as one example of success.

Cleveland is a "national model for doing" with the Euclid Corridor project, Rogoff stated, because the project cost a lot less than light rail but resulted in big ridership gains and major economic development along the corridor. Other cities are studying how Cleveland did it and replicating our success, he added.


Source: Grace Gallucci, Peter Rogoff
Writer: Lee Chilcote
launchhouse driving force behind upcoming cleveland entrepreneur week
Cleveland's economic leaders have worked hard to parade the city as a hub for innovation. A chance to further show off Northeast Ohio's entrepreneurial acumen is a driving force behind Shaker Heights accelerator LaunchHouse's sponsorship of Cleveland Entrepreneurship Week (Cleveland EW), an upcoming four­-day celebration of business success.

The event, scheduled for November 4-­8, was created to give entrepreneurs and investors the knowledge and resources to grow the Northeast Ohio business community, says LaunchHouse co-founder Todd Goldstein.

LaunchHouse will kick off Cleveland EW at its Shaker Heights headquarters by presenting the 11 technology startups participating in its Accelerator Program. The rest of the week will feature speakers and other events that give entrepreneurs from all over the country an opportunity to connect with potential financial backers as well as fellow businesspeople.

"We're giving them exposure to people they normally wouldn't meet," says Goldstein. "Meeting the right person can help turn a small business into a large business."

LaunchHouse pushing for the entrepreneurship event aligns with its mission of local job creation through seed capital, education and innovation, notes Goldstein. With Cleveland striving to be on the forefront of the new economy, an event like Cleveland EW can put the area in a positive national spotlight.

"We've worked to change how Northeast Ohio is viewed in terms of entrepreneurship," Goldstein says. "This [event] is about showcasing the region as a place of innovation and capital formation."

 
SOURCE: Todd Goldstein
WRITER: Douglas J. Guth
 
ny post promotes pair of cleveland art museums
In a New York Post feature titled “Hit up Ohio’s many art museums,” writer Jennifer Caesar highlights the wealth of masterpieces one can enjoy in the great state of Ohio, including those exhibited by The Cleveland Museum of Art (CMA) and MOCA Cleveland.
 
"Ohio and the arts are not such strange bedfellows: Flush with cash in the early 20th century -- from industries like steel, rubber and soap -- Cleveland, Toledo, Akron and Cincinnati built grand museums, and acquired masterpieces to fill them."
Highlighted at CMA is the "stellar Islamic art, fine European paintings (JMW Turner, Van Gogh, Monet and Picasso among them) and excellent contemporary pieces by the likes of Christo, Gerhard Richter and Chuck Close."
 
Over at MOCA is, "a rotating series of cutting-edge contemporary art exhibitions (the museum does not have a permanent collection), which lean heavily toward video and performance art."
 
Check out the full story here.

techpint event touches on lessons learned from business failures
"Failure" is a tough word, particularly for entrepreneurial types throwing so much of their lives into a venture that might go belly up within a few months. However, Paul McAvinchey, creator of TechPint, believes valuable lessons can be learned from disappointment.

Such is the theme of this fall's TechPint conference, a casual gathering for entrepreneurs and investors in Internet technology. Coordinator McAvinchey expects more than 250 of the region's most innovative tech pacesetters to attend the quarterly-held event taking place tonight (September 26) at Sterle’s Slovenian Country House. Speakers John Gadd of Hotcards.com, Kendall Wouters of Reach Ventures and Phil Brennan of Echogen Power Systems will touch on how businesses can bounce back from seemingly crushing setbacks.

"It's a fact that you must fail many times before you see success," says McAvinchey, who moved to Cleveland from County Tipperary, Ireland, in April 2012 to lead product innovation for MedCity Media. "If you're failing, that means you're trying. That's a good thing."

Even stories of tremendous achievement, like the billion-dollar acquisition of Instagram, began on a rocky road of risk and false starts, McAvinchey points out.

"Failure will work for you if you learn from it," he says.

The informal get-together is designed to connect the region's tech thinkers over a couple pints of beers, says McAvinchey. TechPint's moniker this month is "Techtoberfest," in appreciation of this suds-filled season of the year.

Autumn also is a time for scary stories, and attendees will hear a few frightening business-related tales at TechPint. "It's important to celebrate failure," McAvinchey says. "This is a way to bring positive attention to it."

 
SOURCE: Paul McAvinchey 
WRITER: Douglas J. Guth
thriving startup community means jobs aplenty... for the right candidates
The large number of open jobs in the startup community indicates these companies are doing well and growing. But working for a young startup has unique challenges. Recruiters and employers discuss some of the critical qualities required for those looking for a good fit with a startup.
men's journal drops into cleveland for a visit
In a Men's Journal travel feature titled "Visiting Cleveland, on Purpose," writer Robert Reid manages to enjoy himself during an action-packed visit to town -- and also manages to trot out a few hackneyed affronts as well.
 
"Spread out on the south shore of Lake Erie, 'The Forest City' -- called the 'mistake by the lake' by the sort of people who talk like that -- is a pleasant surprise for visitors who actually make the trip," Reid writes. "Just the names of the neighborhoods, including Slavic Village, Little Italy, and Asiatown, are a tribute to the city’s melting-pot roots, which manifest in great fusion cuisine."

In the piece, Reid mentions Happy Dog, Beachland Ballroom, the Orchestra, Big Fun, MOCA, Melt and others.
 
Read the rest of the (back-handed) compliment here.

cleveland cyclewerks to open first exclusive dealership in gordon square warehouse
Cleveland Cyclewerks (CCW), a startup that manufactures and sells its own motorcycles, is set to open the first Cyclewerks-exclusive dealership at its warehouse in the Gordon Square Arts District. The owners will host a party on Saturday, October 5th with food trucks, kegs of free beer and tours of the shop, which sells accessories and also repairs bikes.

"A year ago, this place was a mess," says general manager Jon Dale. "We cleaned it out, pressure washed everything and built a new plywood floor. We wanted to keep the old building feel, though, with the brick walls and the concrete floors."

The shop at Herman and W. 65th Street will be open Monday through Friday from 9 to 5, and will soon be open on Saturdays, as well. The repair shop specializes in vintage British and Japanese bikes, and the staff can custom-build CCW bikes based on a customer's preferences. All of the company's models, including the soon-to-be-released ACE, will be on display in the store.

Owners Scott Colosimo and Jered Streng created CCW after getting laid off from their industrial design jobs in 2009. The lightweight bikes have 250cc engines, are inexpensive to maintain, and get 100 miles to the gallon. They've been described as having a "retro-futuristic" look and are priced at only $3,295.

Dale says that Colosimo and local architect Robert Maschke purchased the vacant, 70,000-square-foot warehouse, which was last home to a rubber stamping plant but built as a meat packing plant, for a small sum. They are slowly refurbishing portions of it and leasing it out to small companies or using it for CCW's operations.

CCW has grown tremendously over the past few years, and now sells bikes at 40 dealerships in the U.S. and 15 countries throughout the world. Dale, a Cleveland native, says that the company has allowed him to stay in the city and do what he loves.

"Not only is my passion my job, but I get to help revive the city," he says.


Source: Jon Dale
Writer: Lee Chilcote
ny times gives ink to new rust belt mag 'belt'
In a New York Times Arts Beat post titled “New Magazine Celebrates ‘Rust Belt Chic,’ With a Wink,” writer Jennifer Schuessler details her conversation with Belt magazine editor Anne Trubek about a new publication dedicated to fostering a new journalistic beat in Cleveland.
 
"The decaying cities of the post-industrial Midwest can sometimes seem like a museum of things America used to make: cars, refrigerators, steel, televisions. But if a start-up in Cleveland gets its way, the region may help rebuild the market for another endangered product -- long-form magazine journalism," Schuessler writes.
The magazine offers up a collection of essays and reporting that seeks to explore the regional identity that is known as the Rust Belt.
 
“I cringe at words like ‘authentic,’” Trubek says in the article. “But the rust belt aesthetic isn’t about the ephemeral global economy, it’s about boots on the ground and things hidden in grandma’s attic. We want to explore that.”
 
Check out the full interview here.

150k-sq-ft victory center nears completion in health-tech corridor
Core and shell renovations of the 150,000-square-foot Victory Center, a $26 million project located along the Health-Tech Corridor, are almost complete. Tenant build-outs will follow, and although none have signed leases yet, developer Scott Garson says that will change as his team finishes the common spaces and shows the property to more prospective tenants.

"Everybody thinks it's wonderful, great… The trick is getting the first one in," he says. "I have enough letters of intent out there that I'm confident it's only a matter of time."

Garson says the demand is there for flexible, ready-to-grow office space geared towards biomedical, research and technology companies, which is why he decided to undertake the project. He points out that nearby buildings owned by Geis Companies and Cumberland Development are almost completely full.

So far, Garson has completed the project without a bank loan, using partner equity and a $720,000 loan from the city, $2.5 million in tax increment financing, federal and state historic tax credits, and a $1 million State of Ohio job ready sites grant. Garson expects to secure bank financing in the near future for tenant build-outs.

The building's unique features include a new interior with a historic waffle slab ceiling, window wells that allow plenty of natural light, copious backup power, fiber-optic connectivity, and the right mechanicals in place for laboratory space. The building will be certified LEED Silver, saving tenants 20 percent on utility costs. Finally, it has views of downtown, free parking and HealthLine access.

"We went through a recycling program with the materials and our landscaping uses stormwater management strategies," says Michael Augoustidis of Domukur Architects, the firm that designed the project. "It's very energy-efficient."

Although he's not ready to declare victory yet, Gardon says the historic building, which was built in 1917 as the Arts Center, is nearing the goal line and ready to score.


Source: Scott Garson
Writer: Lee Chilcote
cleveland clinic innovations launched spinoff company to create breast cancer vaccine
Cleveland Clinic Innovations has launched a spinoff company, Shield Biotech, out of the Lerner Research Institute. Led by Vincent Tuohy, the company is developing a vaccine for breast cancer.

The vaccine uses the body’s own immune system to fight off and kill cancerous tumors. Tuohy, who serves as Shield’s chief science officer, has been working on this theory for the past 11 years. 
 
The next step is to secure FDA approval for human clinical trials, probably within the next two years. Researchers found that a single vaccination could prevent breast tumors from occurring in mice genetically bred to develop breast cancer, while also inhibiting the growth of already existing breast tumors. The research was originally published in Nature Medicine in 2010.
 
“It works in animals,” says Tuohy. “It’s safe and very effective. We’d like to see women live longer without tumors, not women live longer with tumors.”
 
Tuohy sees the vaccine as particularly effective in breast cancers that are aggressive and tend to recur. “Triple-negative breast cancer has a higher recurrence rate than other forms of breast cancer and is insensitive to current forms of adjuvant therapy,” he says. “It’s the predominant form of breast cancer that occurs, for example, in women with BRCA1 mutations. “
 
Tuohy sees potential in eventually immunizing against prostrate and ovarian cancers as well. 

Source: Vincent Tuohy
Writer: Karin Connelly
bowling with strangers: emerging patterns of desegregation foretell a vibrant economy
Cleveland, like most American cities, has had its challenges regarding segregation. But emerging patterns of desegregation can significantly advance our city's position as a center of innovation. This represents a key opportunity to reconstitute a new American neighborhood model by harnessing the potential of diversification.
rta healthline praised for cost/benefit ratio in forbes
In a Forbes feature titled “Bus Rapid Transit Spurs Development Better Than Light Rail or Streetcars: Study,” contributor Jeff McMahon writes of an upcoming report by the Institute for Transportation and Development Policy that explores the cost/benefit ratio of various types of urban transportation.
 
“For example, Cleveland’s Healthline, a BRT project completed on Cleveland’s Euclid Avenue in 2008, has generated $5.8 billion in development -- $114 for each transit dollar invested. Portland’s Blue Line, a light rail project completed in 1986, generated $3.74 per dollar invested.”
 
The report goes on to discuss the many variables going into the study and its relation to the urban environment.
 
Read the full piece here.

jumpstart's mentoring program gives young companies insight, business advice
JumpStart’s Burton D. Morgan Foundation Mentoring Program offers young companies a little additional insight into running a successful business. Each participating startup is assigned between one and four mentors.

“It really depends on the stage the company is at and what their needs are,” says Anthony Hughes, director of the program. “No one mentor is going to have all the skill sets needed as these companies take their ideas to fruition.”
 
Companies do have to be involved with JumpStart to enroll. Currently, 38 mentors are involved in the program and they have assisted 33 companies since it was launched in March of 2012. The program currently has 21 companies active.
 
“The companies have generated or raised $2.9 million in capital," says Hughes. "Startups with access to mentors and advisers are seven times more likely to raise capita and three and a half times as likely to gain customers. We are responsible for creating serial entrepreneurs and polishing the diamonds in this ecosystem. They’re really flying blind without access to people who have been there, done that.”
 
The mentors come from virtually every industry and background -- from Fortune 500 companies to venture capitalists, to leaders of nationally-know startups. “We’ll entertain anyone, but through a stringent evaluation process. We use mentors who are experienced and knowledgeable,” says Hughes. “Mentors are invitation-only. We’re not trying to be elitists or exclusive.”

 
Source: Anthony Hughes
Writer: Karin Connelly
modern-day home ec school agrarian collective teaches the 'hows of the home'
Kelli Hanley Potts has lived in Denver and Albuquerque, where she got involved in the slow food movement, replaced her front lawn with a vegetable garden, and worked for some of those cities' top chefs. When she got the urge to move back home to Cleveland, she knew she wanted to do something food-related.

That's when she stumbled upon a business idea. Despite the rise of the local food movement, most people had no idea how to cook kale, make jam or preserve food. She asked 18 female friends if they knew how to make a pie from scratch, and only two said yes.

Additionally, many people in the local farming movement have trouble explaining and marketing their products to customers, who are largely unfamiliar with them, she explains.

There are no cooking schools in Cleveland that did what she wanted to do -- connect people back to the land and back to their grandmothers' kitchens by teaching them the age-old skills of home economics -- so she decided to create one.

"I didn't want to watch a chef in front of me and drink wine," says Hanley Potts. "I wanted to learn something. I wanted to reconnect people to the lineage of the table, help them build their own table culture."

She recently launched the Agrarian Collective, an earth-to-table lifestyle school. Her mobile cooking school is offering classes this fall that cover topics like roasting your own coffee, fermented and cultured foods, and discovering local apples, among others. She'll be teaching students how to make the perfect pesto at this weekend's Cleveland Flea.

She was aided by a $5,000 low-interest loan from Bad Girl Ventures, which enabled her to purchase supplies and begin reaching out to chefs and farmers as partners.

"This is like home ec, but not quite as official and nerdy," she says. "It's about reconnecting people. All these things we once learned and were taught, they're missing. We're teaching people the 'how' of home."

Source: Kelli Hanley Potts
Writer: Lee Chilcote
downtown cleveland alliance hosts first all-ohio BID conference
As millenials, empty nesters and other demographic groups flock to downtowns across Ohio, business improvement districts -- or BIDs -- are playing an important role in ensuring that these areas are clean and safe and that residents, office workers and property owners have the amenities they need to thrive.

A business improvement district is a defined area in which property owners pay an additional tax in order to fund projects and services that enhance the area. Downtown Cleveland has a BID, and the organization provides basic "clean and safe" services, organizes events and markets downtown to prospective residents, visitors and businesses.

This week, Downtown Cleveland Alliance, which manages the downtown BID, organized the first all-Ohio BID conference, bringing together BID leaders from across the state to network and learn about issues they share in common.

"It came from the idea that there's not a unifying organization or conference for BIDs," says Anna Beyerle with DCA. "We can learn a lot from other BIDs across Ohio. The idea was to get in the same room and throw out ideas and best practices."

Topics included food truck legislation, downtown transportation, farmers markets, placemaking, and office and retail recruitment strategies.

Participants also enjoyed several tours of downtown Cleveland and the surrounding area and had a chance to learn from Cleveland's redevelopment.

Beyerle says the conference will help BIDs, such as the one in downtown Cleveland, to become more effective. "We're up for renewal in a couple years, and we're looking at how we can improve."


Source: Anna Beyerle
Writer: Lee Chilcote
as acendex looks to fill senior tech positions, it trains entry-level staffers
Since 1988, Beachwood-based Acendex has been the go-to IT consulting company for businesses looking for information and communications systems. “We’re like the IT department for companies too small to afford the talent and too large to not have high-end support for their systems,” says Jonathan Husni, founder and president of Acendex.
 
The Acendex philosophy is to let their clients focus on what they do, while Husni and his team build the right voice and data networks to help them do those jobs.
 
With the local economy improving, business has picked up. To cover the increased business, Acendex is looking to add three or four senior network engineers to its 14-person team. But Husni is having trouble finding talented people to keep up with client demands.
 
“Just finding folks who have the skill set I’m looking for is very, very difficult,” he says. “The guys who have been with me who are successful have been with me 10 to 15 years.” Like many IT companies, Husni finds that applicants have the training, but they don’t have the hands-on experience. “A lot of people have the credentials, but they don’t have the experience to back it up,” he says.
 
So in the meantime, Husni came up with a solution. He hires entry-level people and puts them in the field with clients who want someone on-site 40 hours a week. They have the knowledge for basic support and at the same time have the backup of senior level staff if there’s a more advanced problem.
 
“They get the opportunity to get real world experience, but when they get stuck they can call our senior engineers.” Husni says. “It’s a sort of proving ground. It works for the client because they get 40 hours of help at a low cost. It works for me because they get the training they need.”
 
 
Source: Jonathan Husni
Writer: Karin Connelly
halfway there: sustainable cleveland environmental initiative making progress, says city official
Are you sustainable, Cleveland? That's the question environmentally conscious city officials are asking heading into the fifth annual Sustainable Cleveland 2019 Summit. The initiative to build "a green city on a blue lake" is at the halfway mark, and Cleveland's new chief of sustainability believes Northeast Ohio is meeting the metrics set out a half decade ago.