Regional Economy

bad girl ventures congratulates finalists in spring biz plan competition
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
 
preservation nation covers story of playhouse square restoration
In a Preservation Nation Blog post titled “Cleveland’s PlayhouseSquare Theaters Set Stage for World’s Largest Theater Restoration Project,” guest writer Linda Feagler highlights the efforts of Ray Shepardson, who took a struggling and decrepit collection of theaters and began the process that has turned PlayhouseSquare into the second-largest performing arts centers in the nation.
 
“Today, Shepardson’s once improbable effort is Cleveland’s crown jewel: His rescue not only initiated the world’s largest theater restoration project (totaling some $100 million), it transformed that quartet of crumbling venues into a revitalized PlayhouseSquare, one of the largest performing-arts complexes in the country (second only to New York’s Lincoln Center).”
 
Feagler continues to share additional background story and further explain the enormous project the restoration was.
 
Enjoy the full feature here.

amping up and piping down: making music in the physical sense
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.
growing construction firm builds dream home in nine-twelve district
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
united way calls for volunteers to help with cleveland schools transformation
United Way of Greater Cleveland has been a steady supporter of Cleveland's schools for years. The charity organization is now looking for some outside assistance as the city works to change the fortunes of the struggling district.

United Way is inviting volunteers to invest their time and talent in conjunction with the Cleveland Metropolitan School District's initiative to transform its underachieving schools. The CMSD volunteer opportunities have not yet been defined, but United Way president and CEO Bill Kitson knows help will be needed once the new school program launches in the fall.

"We're taking names and we'll get back in touch with people this summer," says Kitson. “We need our entire community to wrap around our kids, their families and their schools.” 

Enrichment programs, mentoring and after-school enrichment opportunities are just a few of the changes afoot for the 13 Cleveland schools impacted by the strategy, the first part of The Cleveland Plan for Transforming Schools.

Interested volunteers can sign up online or call United Way 2-1-1. The organization will contact potential participants when opportunities fitting their skills and interests arise. Helpers might be needed to walk to children to school, or to assist with neighborhood cleanups around school facilities.

"There are so many ways to utilize the community," Kitson says.

United Way officials would like to get a couple of hundred volunteers engaged as soon as the schools open. The group views education as a key to the city's success, and publically supported CMSD's 15-mill levy that passed last November.

"Getting a neighborhood involved in its schools goes beyond education," says Kitson.

 
SOURCE: Bill Kitson
WRITER: Douglas J. Guth
developer set to break ground on phase II of clifton pointe townhomes in lakewood
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
cleveland clinic cmo credited for making brand most recognizable
In a Forbes Magazine post titled “Behind the Brand: CMO Paul Matsen On Cleveland Clinic’s Strides As A Global Marketer,” Jennifer Rooney explains how Paul Matsen has taken his experience from prior endeavors such as Delta Air Lines and worked to establish Cleveland Clinic as one of the most recognizable healthcare brands in the world.
 
From the use of digital, social and traditional media, Matsen's primary goal is to increase brand awareness and ultimately get “those who don’t even need its services yet -- but may someday -- to “get consumers to find out who we are and then in the future for them to consider us as one of their first choices.”
 
Read the full piece and watch the interview here.

11 new businesses will serve growing base of downtown residents and workers
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
housing goes boom: optimism about city's future leads to boost in home sales
Thanks to a brighter economy and heightened optimism about our city’s future, the Cleveland housing market is waking from its five-year slumber. Home sales are rising, prices are inching back to pre-recession levels, and stories of buyers getting outbid on homes are not at all uncommon.
playhousesquare breaks ground on star plaza renovations, first phase of $16m transformation
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
wine mag highlights trio of local gems
In a Wine Enthusiast Magazine story titled “Hot in Cleveland: Three Wine Bars to Visit in Cleveland,” the editors point out that Cleveland is attracting the likes of young artists, artisans, and web entrepreneurs due to modestly priced real estate and an above-average food and beverage scene.
 
“And while the food and beer scenes have always been strong (C-town is home to Michael Symon's empire and the Great Lakes Brewing Co.), this recent trend is raising the culture quotient and energizing the wine scene. There is life beyond the Rock and Roll Hall Of Fame in Cleveland.”
 
Market Avenue Wine Bar, La Cave du Vin and Lola Bistro each provide a unique draw to the young and old alike, from high ceilings, parquet floors, and easy access to the West Side Market for Market Avenue Wine Bar to the genius of Michael Symon’s culinary team at Lola, Cleveland has plenty to keep folks returning for more.
 
Enjoy the full story here.

student-owned distributor business wins prize at entrovation
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
art daily touts cma's beckmann acquisition
In an Art Daily feature titled “Cleveland Museum of Art acquires dramatic painting by seminal 20th century German artist Max Beckmann,” the editors continue to praise the Cleveland Museum of Art for their ongoing work in building some of the most comprehensive collections in the country, including the recently added painting by German artist Max Beckmann.
 
“The acquisition of the Beckmann marks the successful conclusion of a decade-long hunt for a major work by the artist and adds a fascinating and challenging picture to the museum’s holdings of modern European art,” explains C. Griffith Mann, Ph.D, the museum’s deputy director and chief curator. “The African textiles are notable not only for their quality but also for their provenance, and the gifts speak eloquently to the impact our collectors and donors are capable of making across our collections.”
 
The feature goes on to highlight the life and career of Beckmann, including the nature of his work for which he is most known.
 
Explore the full feature here.

blackstone launchpad opens fourth location on case campus
The fourth Blackstone LaunchPad opened on the CWRU campus on April 23, providing a place for aspiring entrepreneurs to gather, learn and get advice.

“LaunchPad is aimed at students seeing it and saying, ‘I have an idea,’” says Deborah D. Hoover, president and CEO of the Burton D. Morgan Foundation. “It’s aimed at students walking in and talking to people and an idea takes off.”
 
The Burton D. Morgan Foundation in Hudson and the Blackstone Charitable Foundation announced in November 2011 that they had committed $3.2 million over three years to open LaunchPad locations in Northeast Ohio to train area student entrepreneurs.
 
The LaunchPad is a venture coach program developed at the University of Miami, Florida in 2008. The program provides participants with advice and mentorship to take business ideas to fruition. Students are matched up with venture coaches to guide them through the development process.
 
The other Northeast Ohio LaunchPads are on the campuses of Baldwin Wallace University, Lorain County Community College and Kent State University. The goal is to create 150 new sustainable companies in the next five years, which could generate as many as 3,000 jobs. Hoover says they expect to exceed that goal.
 
More than 40 students already are registered with the CWRU LaunchPad and 16 are exploring their business ideas. “More than 400 student ventures are underway among the four campuses,” says Hoover. “We think that’s pretty great.” Registration is ongoing.
 
Nearly 200 people turned out for the opening in CWRU’s Thwing Center. “It was great, we were really pleased with the way it went,” Hoover says of the opening. Attendees included Case president Barbara Snyder and Bob Sopko, director of the CWRU LaunchPad, as well as Joan Solotar, chair of the Blackstone Charitable Foundation and Vinny Gupta, chair of the Ohio Board of Regents.

 
Source: Deborah D. Hoover
Writer: Karin Connelly
organization asks parents to pledge allegiance to their children's education
 About 2,000 days pass from when a child is born to the moment he or she enters kindergarten. Officials from The Centers for Families & Children believe every one of those days is critical in preparing a child's educational future, and have created a new campaign to back up that point.

The 2,000 Day Pledge asks parents already involved with The Centers to keep their kids in an early learning program for as many days as possible within the first 2,000 days of that child's life. It also requests parents choose a high-performing elementary school compatible with their young student's learning needs, with graduation from high school being the long-term goal.

Those 2,000 days are a window to prepare children for success in school and life, says Sharon Sobol Jordan, president and CEO of The Centers. "We have this same amount of time with our parents to help them get ready to be good advocates for their children," she says.

Kids who enter kindergarten lacking a solid educational foundation are at risk of falling behind peers who have those advantages, says Amy Martin, the organization's vice president of marketing and communications.

"The gap widens in elementary school, and by high school you start to see the drop-out rate rise," says Martin.

While the new campaign is mostly aimed at existing clients, The Centers' officials hope word about the pledge spreads to expectant mothers and other members of the community.  In addition, The Centers doesn't just ask parents to pledge, but considers the campaign a shared commitment between itself and participants.

"We want to help parents fight for the education of their children," Martin says. "We're partners with them every step of the way."
 
SOURCE: Sharon Sobol Jordan, Amy Martin
WRITER: Douglas J. Guth
toa expands global presence with largest customer to date
TOA Technologies announced that Madrid, Spain-based Telefonica has chosen TOA's mobile workforce management software to manage its worldwide field technicians. Telefonica, which is one of the largest telecom companies in the world, chose TOA for its cloud-based ETADirect technology and its ability to ramp up operations quickly in multiple locations.
 
“It was a fairly long selection process,” says TOA vice president of worldwide marketing John Opdycke. “Telefonica originally thought it would be an on-premise solution, but then they realized the cloud-based solution would allow them to go one country at a time.”
 
TOA will implement its products first in Brazil, followed by Spain, Argentina, Chile, Columbia and Peru. Eventually, TOA will be in 24 countries with Telefonica. “There’s nothing anyone needs except access to a browser,” explains Opdycke of why TOA was attractive to Telefonica. “They can be non-standard, browser agnostic and platform agnostic. Telefonica needed that flexibility.”
 
Telefonica is TOA’s largest customer to date in terms of size. More important, Opdycke says, is Cleveland’s increasingly strong presence in the global technology marketplace. “We’re proud to represent the Cleveland technology market and the international market,” he says. “TOA is one of the leading companies in the Cleveland market that is really doing international business.”
 
TOA employs 56 people in its Cleveland headquarters, and another 454 worldwide. The Telefonica deal will add employees to TOA in Spain and Brazil, and perhaps Cleveland. Telefonica’s CTO and other team members are planning a visit to Cleveland.
 
In the meantime, TOA is in the midst of expanding its headquarters from 8,200 square feet to 17,000 square feet. The company was also recently named as a finalist as Tech Company of the Year in the 2013 NEOSA Tech Week Best of Tech Awards.

 
Source: John Opdycke
Writer: Karin Connelly
tech week enjoys record attendance, showcases best of tech in cle
NEOSA Tech Week brought 1,600 attendees to events around Cleveland last week, tripling its numbers since it first started three years ago. “It’s really inspiring to see the region recognizing the value and importance of the IT industry in Cleveland,” says NEOSA director Brad Nellis.

From the NASA International Space Apps Challenge, which had 34 local participants in a worldwide event of 9,000, to the much-anticipated Best of Tech Awards, to educational events and job fairs, Tech Week highlighted both the emerging technology companies and the more established and growing businesses in the region.
 
“We saw a lot of new companies we hadn’t seen before and that was kind of cool,” says Nellis. In particular he cites iOTOS as a standout winner in the new Best of Tech category Most Promising Startup. “These guys showed a high degree of promise. iOTOS holds the opportunity to be something big coming out of Northeast Ohio.”
 
UrbanCode, which announced Monday that it has been acquired by IBM, won Best Software Product. “UrbanCode really stands out in the market,” says Nellis. “It was cool that we give them an award on Thursday, and on Monday they announce they’ve been acquired. We’ve been following them for a couple of years and they’re a company that’s growing like wildfire. They’ll probably double in size again this year.”
 
Hyland Software won Tech Company of the Year, Vox Mobile won Best IT Services Company, and DecisionDesk won Best Emerging Company. Nellis points out that all of the finalists are impressive companies as well, having emerged out of 60 nominations in five categories. Six CIO of the Year were named in various categories by Crain’s Cleveland Business.
 

Source: Brad Nellis
Writer: Karin Connelly
rise of the rest: it's not just silicon valley anymore, people
Has Silicon Valley jumped the shark? Ask many keen observers of technology hubs from coast to coast and they'll tell you that 2013 is prime time for startups to bloom in unexpected cities like Detroit and Cleveland. Dubbed the "Rise of the Rest," the burgeoning trend documents the blossoming of entrepreneurialism in unexpected places.
these ain't no boomerangs: transplants relish life in a new corner of the world
At times it seems like everybody living in this town was born in this town. After all, who would choose to settle here unless they had deep family roots? We introduce four transplants who moved to Cleveland and never looked back. Not only have they made the most of it; they've made a life of it.
alexander mann solutions expands steadily after choosing cleveland as its u.s. hub
Talent management firm Alexander Mann Solutions unexpectedly chose Cleveland as the hub for its U.S. operations last year. The company was all but set on Raleigh, North Carolina, when a full-throttle pitch by business leaders changed their minds. Afterwards, CEO Rosaleen Blair said the firm was "love-bombed" into choosing Cleveland. A package of incentives from the State of Ohio reportedly helped to seal the deal.

Now the firm is quickly expanding into its temporary offices in the Erieview Tower in downtown Cleveland. It has doubled in size since opening in August -- the firm now employs 40, and plans are in the works to ramp up to 60-75 employees by the end of the year.

"It's getting smaller by the day," says Mark Jones, Head of Global Client Services for Alexander Mann, of the current, 8,000-square-foot office. Jones moved here from the U.K. with his family. "We are looking at all options downtown."

Based in London, AMS employs more than 1,800 people, and assists clients in more than 60 countries. Cleveland is the firm's fifth operations center, with additional hubs in the U.K., China, the Phillipines and Poland. The firm has said that the hub in Cleveland could grow to become as large as 300 employees.

Finding the right talent for AMS in Cleveland has been harder than he anticipated. "Part of the challenge is that what we do is not straightforward. We're not a staffing firm. We are a specialist organization that deals with large corporate clients, handling all aspects of talent management for those clients. Not only does that mean finding candidates, but the complete onboarding of candidates."

Alexander Mann is currently hiring qualified individuals with experience in recruiting. Jones says he's been happy with the level of talent they've identified so far. "The caliber of people we've been able to hire is very, very strong."


Source: Mark Jones
Writer: Lee Chilcote