Regional Economy

survey says: cle is a small-biz friendly city
In a Thumbtack.com survey titled “United States Small Business Friendliness,” the editors grade Cleveland an “A-“ in overall friendliness to small business. They also gave Cleveland an “A” in ease of hiring and an “A+” in training and networking programs.
 
“Starting a business is one of the greatest risks I have undertaken. I have the good fortune of starting that business in Ohio. The State gave me an entire website guiding me so that the odds of success are greater. I am not sure I can qualify starting a business as easy, but the support in my state made certain that it wasn't too painful,” shared a Cleveland-based marketing consultant.
 
Cleveland did have some areas for improvement despite its high overall grade. Regulations and tax code issues can sometimes be challenging for small business owners according to the findings.
 
Check out the complete survey here.

sociagram adds a personal touch to online gifting
Ryan O’Donnell has created a way to add a personal touch to online gifting. The founder and CEO of Sociagram has created an online cloud-based platform to create customized personal video messages. O’Donnell recognized that people enjoy sending e-cards and adding other personal touches when they send online gifts.

O’Donnell started Let’s Gift It in 2011, an online group gifting site, but quickly recognized the market wasn’t there. “What we learned is we were in a startup graveyard,” he says. “There was low perceived value and a high level of complexity to integrate it.”
 
But the idea behind Let’s Gift It led to Sociagram in 2012. “Since 1996, the only option was printing out a gift message on a packing slip that gets sent out with the product,” explains O’Donnell. “We realized we need more than that. With Sociagram, grandma and grandpa live in another state, they can click a button and sing happy birthday to their grandson. Dad can then record the grandson opening their gift.”
 
Retailers can also incorporate Sociagram into their gift options. Sociagram clients include 1-800-Bakery, Ashland Addison Florist Company and Mak·a·boo Personalized Gifts.
 
Sociagram recently received a $250,000 investment from JumpStart to further develop its platform. “They’ve been great partners,” says O’Donnell. “They’ve helped us think it through.” O’Donnell just moved Sociagram’s offices to Cleveland from New York. “Cleveland has been a very receptive place for us,” he says. He’s currently working out of the FlashStarts offices.
 
The company currently employs two software developers and two marketing and sales people, as well as an intern. O’Donnell plans to hire an additional four people as the company grows.

 
Source: Ryan O’Donnell
Writer: Karin Connelly
ground breaking takes place on ambitious hansa house redevelopment in ohio city
Even in Ohio City's Market District, where monthly announcements of new businesses opening are not uncommon, this one is noteworthy. Boris Music, the Slovenian-born owner of the Hansa Import Haus at West 28th and Lorain, is set to break ground on a multi-million-dollar expansion that will transform a dated store into a restaurant and microbrewery.

For years, Hansa Import Haus has been a favorite of locals and those in-the-know -- its faded, faux-German exterior concealing the treasures of European chocolates, cheeses, meats and beer within. To outsiders, it was like: "That place? Is it even open?"

Yet Music, who owned eight other businesses in Cleveland but has shut them all down to start this project, says that the Ohio City neighborhood has finally been redeveloped to the point where he can jump in and pursue his dream project.

"The building was built as a fortress 30 years ago because we had to keep the vandals out," says the 56-year-old. "Now we're moving in the opposite direction. It will be much friendlier, with lots of windows that let the natural light in."

Although Music will roll out his new business in stages, the new Hansa House will hold an exclusive license to brew Pivovarna Lasko beer, Slovenia's largest beer producer, and also feature a European-style restaurant that offers lunch and dinner service. Later, Music plans to add a wine cellar and offer breakfast.

Designs for the new venue show the defensively-designed exterior opened up with large storefront-style windows and a new addition on the current parking lot. The design looks a bit like an Austrian ski lodge crossed with an ethnic beer garden.

As for the menu, Music says that he'll serve simple, high-quality food priced well. "Good ingredients, good quality," he says. "If you put something good in the pot, you get something good out. If you put garbage in the pot, you get garbage out."

More specifically, Music plans to bring in rotating chefs from Europe to deliver a menu that will focus on cuisine from a specific region for several months at a time. Cuisine from Hungary, Italy and Slovenia are likely options. Music says it's a concept he's seen work well in New York City that he wants to import here.

The Hansa Haus will also have a full bottling line. "This is nothing bombastic, it's not Great Lakes Brewery," he says. "We'll still be a microbrewery, and we want to help local breweries be more effective by offering them a cost-effective service."

Music intends to begin brewing beer in July and open the brewpub by October.


Source: Boris Music
Writer: Lee Chilcote
melt included among best grilled cheese sandos
In honor of National Grilled Cheese Month, a Relish listicle rattles off “America’s 10 Best Grilled Cheese Sandwiches.” Cleveland’s Melt Bar and Grilled makes the list with multiple locations throughout the area.
 
“Boring thin-sliced white bread and American [cheese] are things of the past,” says Melt Bar and Grilled owner Matt Fish of his forwarding-thinking sandwich philosophy. “The more attitude and adventurous you can make the grilled cheese the better.”
 
Check out the full write-up here.

a tale of two cities' newspapers
In a The Editor's Room feature titled “The Times-Picayune Fiasco: Newhouses Give Cleveland a Better Deal Than New Orleans,” Errol Laborde explores in his commentary why the Cleveland Plain Dealer did not get sliced and diced nearly as badly as New Orleans’ Times-Picayune in their restructuring.
 
Laborde details how both city's citizens were vocally passionate about saving their dailies, however Cleveland was somehow spared whereas New Orleans suffered massive cuts.
 
“New Orleans may have gotten the shaft and Cleveland spared simply because our town came first. The protesters down here may not have saved their daily but they got a message across and that ultimately may have helped The Plain Dealer,” Laborde writes.
 
Read the full passionate commentary here.

foundation grant sends message, gives financial boost to 2014 gay games
The 2014 Gay Games was a great "get" for the Cleveland-Akron area, as the region was selected over larger competing metropolises like Boston and Washington, D.C. The Cleveland Foundation has reinforced the notion of the games' importance with some hefty financial support.

The foundation recently awarded the games a $250,000 grant, forming a partnership that makes the organization the games' top sponsor. The event is now named the 2014 Gay Games presented by the Cleveland Foundation, representing the first presenting sponsorship in the games’ 31-year history.

"We saw the games as an important event coming to Cleveland," says foundation executive vice president Bob Eckardt. "This [grant] sends a message about the area as an inclusive community."

As a result of the partnership, a new LGBT fund also is being established at the foundation. Launching at the end of the games next August, the fund will assist LGBT organizations and serve as a donation source for people interested in LGBT causes.

The forthcoming sports and cultural festival, aimed at promoting respect and understanding of the gay community through athletics, is expected to draw about 30,000 people to the region, including 11,000 athletes.

Foundation leaders maintain that the games' social impact on Northeast Ohio is just as important as its potential economic benefits. "Our hope is it will leave a legacy of a region more sensitive and welcoming to the LGBT community," Eckardt says.

That relationship is already growing, says the foundation VP, as games' leaders are now cultivating relationships with local businesses intent on strengthening Greater Cleveland's support of LGBT society.

"This is a great opportunity for the entire community to work together," says Eckardt.

 
SOURCE: Bob Eckardt
WRITER: Douglas J. Guth
greening of cleveland's building sector gets help from grant
A nonprofit seeking to create environmentally sound, high-performance building districts in Cleveland recently got a hand with its city-greening mission.

The Cleveland 2030 District, a group that would like downtown edifices to consume less energy and water and produce less greenhouse gases, received a $175,000 grant from The Kresge Foundation, funding that will go in part to the salary of the organization's first executive director as well as additional staff support.

The new executive director is Jon Reidy, who has been with the group of architects and engineers since 2011. The bulk of the grant will allow the group to intensify efforts put forth by the national Architecture 2030 project, which aims to reduce climate-changing emissions from the global building sector.

"We're creating a demand downtown for energy efficient projects in the interest of business development," says Reidy, a 15-year veteran of the architecture industry.

The Cleveland group is an offshoot of Mayor Frank Jackson’s Sustainability 2019 project, an effort to transform the city’s economy by "building a green city on a blue lake."

Cleveland 2030 works with owners, managers and developers within the downtown district to expand the number of buildings participating in the project. Five property owners controlling approximately 3.5 million square feet of Cleveland's brick and mortar are signed up so far.

Reidy hopes more area building owners share the project's vision of a future Cleveland where energy efficiency and a cleaner environment are the norm.

"Sustainability can be the foundation for rebuilding our economy," he says.
 
SOURCE: Jon Reidy
WRITER: Douglas J. Guth
flashstarts looking for tech startups to join fast-paced accelerator program
In the penthouse of the historic Palace Theatre, Charles Stack is hoping to foster a few new tech companies -- 10 to be exact -- in Cleveland’s newest business accelerator, FlashStarts.

Stack started FlashStarts in October 2012 and will hold his inaugural startup class this summer. “Come in with a half-baked idea and we finish baking it, slap some cash for equity, and start it in three months,” he explains.
 
Teams of two or more can apply to be one of the 10, but Stack is also looking for 10 interns and even potential entrepreneurs who don’t have an idea yet, but want to help build on somebody else’s idea. “Even if you don’t have teammates or an idea, you can apply and we’ll put you with a team and you will get equity with that team,” he says. “There are a lot of smart people out there who may not have a teammate.”
 
Stack is against the “cookie-cutter approach” to starting new businesses. Instead, he helps each company with their unique needs. “As soon as you apply, if we like the concept we begin the process of launching the company,” he says. Stack immediately gives the teams individual challenges, like researching the patents or market size.
 
“The key to making that business successful is getting the team familiar with us and us familiar with them,” Stack says. “It’s really not the same for every business. Different opportunities require different tools.”
 
Stack is raising $1.1 million to invest in the companies. Teams will receive up to a $20,000 investment -- $11,000 plus $3,000 for each team member. FlashStarts in turn gets eight percent equity in the company. Teams can potentially receive up to $200,000 in follow-on funding upon completion of the program.
 
Stack already has identified six potential candidate teams. He is accepting applications until May 10. Stack also is looking for mentors and advisors. FlashStarts has partnered with DecisionDesk to facilitate the application process and recently brought in Jennifer Neundorfer as managing partner.
 

Source: Charles Stack
Writer: Karin Connelly
global cleveland's asian initiative designed to attract, retain asians
Global Cleveland recently launched its Asian Initiative, a program to attract and retain Asian talent to the region. “Asians are now the fastest growing and most educated population in the U.S.,” says Meran Rogers, Global Cleveland’s director of community affairs, adding that Cleveland has seen a 49-percent increase in Asians between 2000 and 2010.

Those numbers prompted Global Cleveland to reach out to various groups in the Asian community to identify focus areas of the initiative. The group hosted 30 Asian community leaders in March at a launch meeting. “We identified three main strategies for the overall Global Cleveland mission,” says Rogers. “To attract and retain Asian newcomers who will support the growth and talent needs of businesses and industries; assist Asian newcomers and young professionals in establishing roots; and foster an inclusive and welcoming community for Asians.”
 
Rogers points out that while Global Cleveland is spearheading the initiative, it’s really about supporting the goals of an already-strong Asian presence in Cleveland. “It was really important to work with all of the leaders and find out what they want to do and then help them do it,” says Rogers. Global Cleveland is working closely with groups like MotivAsians for Cleveland and Asian Services in Action (Asia, Inc.) to attain these goals.
 
Part of the program includes promoting the job fairs in IT, biomedical research and healthcare, as well as educating employers on the importance of hiring international talent. “Over half the population is foreign-born, so a lot of growth has to do with immigration,” says Rogers. “We’re really promoting the job fairs to the Asian community.”
 
Rogers says they also plan to be involved in plans to better connect AsiaTown. “Cleveland is known for AsiaTown and there are plans for improvement, to find ways to connect the different areas because they are very cut up,” she says. “Retention is dependent on how connected people feel.”

 
Source: Meran Rogers
Writer: Karin Connelly
huffpo reports on plain dealer woes
In a Huffington Post story titled “Cleveland Plain Dealer To Cut Daily Home Delivery,” staff writers share the harsh reality of the Cleveland Plain Dealer’s decision to cut home delivery to three times per week while continuing to print a daily edition.
 
“The Plain Dealer announced the change, along with a reorganization of the company, on Thursday. The newly formed Northeast Ohio Media Group will handle "all advertising sales and marketing for The Plain Dealer, Cleveland.com and Sun newspapers," as well as provide content for all print and digital products.”
 
In November the publisher announced significant changes to the paper. Rather than daily printing being cut to three days per week like some had feared, home delivery will take the biggest and most noticeable hit.
 
View the full post here.

fast-growing flack steel a maverick among peers
first-ever pay-as-you-go commercial kitchen set to open its doors on euclid avenue
The final inspections for Cleveland Culinary Launch and Kitchen take place this week, and a customer is planning to come in the next day. The organizers behind Cleveland's first-ever shared commercial kitchen hope that's a sign of good things to come.

The kitchen's goal is to help local food entrepreneurs bring products to market. With so many food truck owners, caterers, urban gardeners and budding chefs making their products in cramped home quarters or church kitchens that aren't always available, the group behind the venture hopes to fill a growing need.

"We're a food launchhouse," says Carolyn Priemer, whose family-owned real estate company is a partner in the project, along with Tim Skaryd of Hospitality Marketing and Sales and the Economic and Community Development Institute (ECDI). "Ours is the only facility in Cleveland that you can pay as you use."

The facility allows entrepreneurs to lease time for $18-24 per hour. The kitchen, which was built by Cleveland State University before it moved to the new student center, has stations for baking, catering, canning, thermal processing and dry packing. The venue also has dry storage and walk-in coolers and freezers.

ECDI is available to offer loans to food entrepreneurs, and the partners plan to offer classes as well. Hospitality Sales and Marketing is a food brokerage, and Skaryd says he will help customers with small-scale canning and labeling.

So far, prospective customers that have expressed interest include food truck operators, an ice cream maker, tea maker and granola bar maker, among others. Priemer says that she's gotten inquiries with only word-of-mouth marketing.

The facility is available for use 24/7, and has its own security system and key card access. Users do not have to sign a lease, but must sign a basic user agreement.

Will it be profitable? Priemer says that will depend on the amount of usage, and right now it could go either way. However, she hopes entrepreneurs will see the value not only in the space, but in networking opportunities with other startups.

"There is no food hub for businesses," she says. "This seems to connect a lot of areas of the food industry here. We're planning to hold networking events to bolster the local food community, including bringing in some guest chefs."

Cleveland Culinary Launch and Kitchen is located at 2800 Euclid Avenue.


Source: Carolyn Priemer
Writer: Lee Chilcote
cleveland streets set to host captain america
In a Screen Rant post titled “Captain America 2 Begins Production: First Photo & News Synopsis,” Rob Keys shares how production is underway for Captain America 2 dubbed "Captain America: The Winter Soldier."
 
Already released is the first official photo from the sequel as well as casting confirmations and a new synopsis.
 
“The film has begun shooting in Los Angeles for in-studio work and will move to shooting on-location in Cleveland, Ohio, and Washington D.C. this summer.”
 
There was plenty of excitement throughout the city when "The Avengers" was shot here two summers ago. It is almost time to gear up for more of the same.
 
Enjoy the full story here.

building blocks: this is what $4B in downtown development looks like
Think you know Cleveland? Well, thanks to $4 billion in new downtown development, you just might not recognize it anymore. Soon-to-be-completed projects like the Global Health Innovation Center, Convention Center, Ernst and Young Tower, Aloft Hotel and those in PlayhouseSquare have pushed the city to a tipping point in its evolution.
cle furniture designers collaborate on soulcraft gallery in 5th street arcade
A group of Cleveland furniture makers who have earned national attention for their work plan to open a gallery in the 5th Street Arcades in downtown Cleveland in order to showcase their work.

They believe a downtown gallery can be successful by co-locating with other like-minded retailers, serving the growing base of downtown residents and hosting shows to attract crowds. Thus far, 12 Cleveland furniture designers have signed up to take part.

Soulcraft Gallery was recently named a finalist in the 5th Street Arcades Retail Development Grant Competition, a program that will award grant funding, favorable lease terms and discounted space to five startup retailers.

The other finalists are Bliss Books (indie bookseller), Bright Green Gift Store (organic gifts and home wares), POUR (coffee shop) and Sushi 86 (restaurant). All of the finalists have launched crowdfunding campaigns on Indiegogo to leverage the funding they've been awarded by Charter One Growing Communities.

Downtown Cleveland Alliance and Cumberland Development, which is the master lease-holder for the 5th Street Arcades, are also partners in the unique effort.

"The furniture scene is really growing here," says Peter Debelack of Soulcraft Woodshop, a cooperative woodshop that is located in the Hildebrandt Building in the Clark-Fulton neighborhood. "Cleveland is a good fit for this in part because of how decimated it's been. We have so much amazing industrial space that Joe Schmoe can get for a really low cost. Then there's the wealth of reclaimed materials like industrial salvage. For pure designers, we're also in close proximity to the Amish, who are some of the finest furniture makers in the world."

The 900-square-foot gallery will feature 40 feet of window space on the corridor. It will function as a gallery with regular hours, but will also host special events and openings. Debelack plans to run it along with designer Shelley Mendenhall. Other furniture makers include A Piece of Cleveland, 44 Steel and Rust Belt Welding.

Debelack says the store will contribute to the revitalization of Cleveland and downtown while growing the furniture making scene here. He also wants to nourish the burgeoning maker movement, calling Soulcraft an "open source gallery" where talented amateurs will also be able to proffer their work.

Although no date is set, Debelack expects Soulcraft Gallery to open this summer.


Source: Peter Debelack
Writer: Lee Chilcote
bialosky architecture still growing after 60 years
When Jack Bialosky founded Bialosky and Partners back in 1951, he was just 27 years old and fresh out of serving in World War II. His vision and determination as an architect prompted him to follow his entrepreneurial urges and break away from his employer to pursue the clients he wanted to serve.

“He was working for architect Charles Kohlman at the time,” says Jack Bialosky, Jr. “As more work started coming in, Kohlman wasn’t interested in taking it on. So, Dad went out on his own.”
 
The move paid off. The senior Bialosky began with single family residential homes, including some of the first modern homes in Shaker Heights. The homes were known as “Bialosky-Designed Homes” at the time.
 
The practice has expanded over the years to include some of Cleveland’s most notable structures. It began with designing the May Company building in University Heights -- the largest retail project in the country when built in 1951. “That was the beginning of a big commercial practice for us,” says Bialosky, Jr.
 
More recent retail structures include Eton Chagrin Boulevard and Crocker Park. The firm has designed buildings at Ursuline College and Tri-C’s hospitality management program as well as RTA’s headquarters. Bialosky and Partners also has a reputation for its religious buildings, like Cedar Road Synagogue.
 
“We’ve been in business long enough that a lot of our buildings have come down, but a lot of them also have become landmarks,” says Bialosky, Jr.
 
Today, Bialosky and Partners is a family-run business. Jack Jr. joined the firm in 1986 and brother William Bialosky heads up the New York offices. The firm has grown over time to 40 employees in Cleveland and six in New York. The firm has made the Weatherhead 100 three times, and the average tenure of employees is eight to 10 years -- a long time in the industry.
 
Bialosky Jr. credits their success with being a diverse architectural firm. “We were advised that if we wanted to grow we had to specialize or become boutique,” he says. “That didn’t sound like fun, so we bucked that advice, and it’s a good thing we did.”

 
Source: Jack Bialosky, Jr.
Writer: Karin Connelly
i live here (now): andi kornak, general curator, cleveland metroparks zoo
Meet Andi Kornak, the new General Curator at the Cleveland Metroparks Zoo. After two decades working at the Binder Park Zoo in Battle Creek Michigan, Kornak moved here to accept a new position. "I feel very settled here," says the recent transplant.
clevelander's documentary offers real-life tales of rust belt revitalization
For some, the term "Rust Belt" conjures unpleasant images of empty factories, foreclosed homes and unhappy people wandering cracked streets, wondering when times will get better. But what's really happening in some of the Midwest's major cities, and how different is it from the way these cities are often depicted?

Jack Storey thinks he has an answer. The impassioned city advocate has created a documentary chronicling what he believes is a more accurate representation of resilient cities working on reinventing themselves.

"Red, White & Blueprints" is an examination of the strides being taken by Cleveland, St. Louis, Detroit, Pittsburgh, Buffalo and Youngstown, highlighting the most innovative initiatives, individuals and ideas coming out of these cities.

"It's a positive movie about the Rust Belt, which nobody is really doing," says Storey, 30. "We're showcasing another side of these cities."

Storey, founder of the grassroots community development organization Saving Cities, spent two weeks in the summer of 2011 traveling and taking footage with friend Rick Stockburger. He met steelworkers and autoworkers, entrepreneurs and politicians, all with their own ideas on how to boost their respective homes. Locally, he interviewed figures including Gina Prodan from Unmiserable Cleveland and Katie O'Keefe, better known as "the pink-haired tattoo girl."

Storey, of Collinwood, learned just how tough Midwesterners are. More surprising was how deeply the people he met cared about their city's livelihood. "It was the most educational experience of my life," he says.

"Red, White & Blueprints" debuted this week at Cleveland International Film Festival. (Screens tonight at 6:30 p.m. on stand-by.) Storey hopes the film gives viewers a truer vision of what it means to live in Cleveland and other less heralded parts of the country.
 
 
SOURCE: Jack Storey
WRITER: Douglas J. Guth
retro gaming fun the aim of coin-op cleveland crowdfunding campaign
Memories of flashing lights, digitized explosions, rock music and quarters being ritually plunked into plastic coin slots have a happy place in the minds of many folks of a certain generation. Two Clevelanders want to bring those sights and sounds back to the city this summer in the form of a pop-up arcade.

Coin-Op Cleveland is a Kickstarter project helmed by John Stanchina and Mike Scur. While arcade gaming collapsed in the 1990s with the ascension of home consoles, the duo believe putting an old-school retro arcade in a West Side neighborhood will attract people seeking to mash some buttons with a few nimble-fingered friends.

Put simply, the pair wants to create a fun, unique place to hang out away from the "barcades" that have a few arcade cabinets alongside the plentiful booze.

"The vibe is being a kid again," says Stanchina, an Ohio City resident. "It's about interacting in a different kind of space."

The $35,000 Kickstarter campaign, which ends at midnight on May 13, will fund the arcade's installation and 30-day operation in Ohio City, Tremont or Gordon Square. A large part of the cost will go toward purchase and maintenance of the arcade machines themselves.

The plan is to run the arcade for a month, but if it receives additional funding, a permanent installation is possible, says Scur of Parma Heights.

The two friends envision a community space that becomes part of the downtown Cleveland nightlife scene, just with neon lights, popcorn and rows of game cabinets instead of a bar.

"Arcades are all about the social element," says Scur. "They've always been a place to play games with people on the same wavelength."

 
SOURCES: John Stanchina, Mike Scur
WRITER: Douglas J. Guth