Regional Economy

beachwood offers incentives to businesses that locate or expand
The city of Beachwood already is home to 2,500 businesses, and the city has long taken pride in providing services and amenities that make the city an attractive place to locate. Now Beachwood is launching a grant program to further entice new businesses and encourage existing businesses to expand.
 
The Job Creation Incentive Grant Program offers annual grant payments to companies. The payments are based on a percentage of payroll withholding taxes generated by new jobs. Businesses that relocate to Beachwood must create a minimum of 30 full-time jobs or a minimum annual payroll of $1 million within three years. An existing Beachwood company that expands within the city also qualifies for the grant under the same rules. Retail and food service businesses are not eligible.
 
Mayor Merle S. Gorden and city council must approve each grant application.
 
“We know that expansion of business is very important to the wellbeing of the community,” says Beachwood economic development director Jim Doutt. “Payroll is subject to income tax. A company would be able to get back some of that tax if it locates here.”
 
The program is just the first step in a larger economic development plan recommended after Gorden commissioned a study last October to position Beachwood for future business growth. City council approved the program on Feb. 4.
 
“This is just one element of a larger incentive framework we’ll be putting in place,” Doutt says. He has no estimates on how many jobs the incentive program may create in the city. “It’s anyone’s guess; we just hope it spurs job growth.”

 
Source: Jim Doutt
Writer: Karin Connelly
chef sawyer's local-food efforts grab attention of new york times
In a New York Times feature titled “Locally Grown Gets Tricky in the Cold,” writer Dan Saltzstein discusses the difficulty chefs face when trying to keep their menus locally focused at a time of year when not a whole lot is being grown.

"Locally grown. Market-sourced. Farm to table: These phrases have become the mantras of the American menu, promising ingredients that are supremely fresh, in season and produced within a tight radius of the restaurant," writes Saltzstein. "But what can they possibly mean in the dead of winter, in northerly climes where farms are battened down and the earth is as hard as a raw cabbage?"

Cleveland’s Jonathon Sawyer takes the winter months in stride.

“We sort of look at winter the way an old-school chef looks at frugality,” said Jonathon Sawyer of the Greenhouse Tavern, in Cleveland. “We take more time with dishes because we have less to put on the plate.”

Saltzstein also mentions Sawyer’s “Sustainability Initiatives,” including the bottling of his own vinegar and pantry full of preserved items.

Check out the rest of the interesting piece here.
venture for america plants fellows to halt brain drain
Venture for America, a non-profit group that places new college grads in startup companies, is coming to Cleveland. The New York-based organization focuses on placing new college grads in jobs at startups in cities with a low cost of living and in the process of revitalization.

“The goal is to create young entrepreneurs,” explains VFA vice president of corporate development Mike Tarullo. “Too many of our best and brightest are going into big firms and too few are going into growth businesses and startups.” Ultimately, the hope is that the fellows will become successful entrepreneurs themselves in the cities where they are assigned.
 
The VFA team scours college campuses for recruits. The grads then spend two years in startup or growing companies, getting hands-on experience in developing a company. The employers pay the fellows $36,000 a year.
 
VFA launched 18 months ago with 40 fellows in five cities: Cincinnati, Detroit, New Orleans, Providence and Las Vegas. This year the organization expanded to Cleveland and Baltimore. The concept is modeled after the Teach for America program, which places new teachers in underserved schools.
 
“We identify cities that are kind of reinventing themselves through entrepreneurship industries,” says Tarullo. “A lot of it is about preventing brain drain.” The VFA wants to create 100,000 new jobs by 2025 by helping young companies expand and train new college graduates to become business builders and job creators.
 
The organization has identified 25 possible Cleveland companies, and Tarullo has already talked to more than 10 companies that are interested in hiring a fellow. “They are all different sizes in all industries,” he says. “The common thread is great leadership and exciting growth opportunities. The fellows can cut their teeth and spend a couple of years learning and growing.”
 
VFA plans to send eight to 10 fellows to Cleveland each year. Tarullo has relied on area support organizations to identify companies. “JumpStart and Bizdom have played a huge role,” he says. “They have welcomed us to the community and introduced us to the right people.”

 
Source: Mike Tarullo
Writer: Karin Connelly
portside, cle's first distillery since prohibition, is hiring
Dan Malz is a science guy and a rum aficionado who always dreamed of making his own rum. Three years ago over a pint of Guinness, that dream was on the way to becoming a reality. That's when Malz and his three business partners, John Marek, Keith Sutton and Matthew Zappernick, founded Portside Distillery, Cleveland’s first distillery since Prohibition.
 
Portside Distillery produces small-batch artisan spirits and craft beers from its lakeside location on W. 9th and Front streets. Malz and his partners got the distillery’s name from their location. “We’re right on the lake, and rum is a very nautical term,” he says. We’re on the side of the port and in the same building as the Cleveland Port Authority, so it fit up well.”
 
Their first batch of silver rum was released in December of last year. “Silver rum is un-aged rum,” explains Malz. “It’s just high class distilled spirits.” Portside rum hit 22 state liquor stores in January. “The first batch of 800 bottles sold out in three days,” says Malz. “The second batch is in stores now.”
 
Plans are underway to expand Portside’s selection. “We’re going to make vanilla maple rum and spiced rum,” says Malz. “And we have a couple of beers brewing right now.” Malz and his partners are brewing double pale ale, followed by an imperial stout. The two new rums should be available later this month.
 
Additional plans include a restaurant at the distillery, which is scheduled to open this summer. It will feature upscale food, eight Portside beers and 18 local guest brews on tap.
 
Portside is currently looking to fill two positions, one in the brewery and one in the distillery.

 
Source: Dan Malz
Writer: Karin Connelly
shaker launchhouse raises $15k in the name of entrepreneurship
Shaker LaunchHouse raised $15,000 at its second annual gala, held last week at Crawford Galleries of Western Reserve Historical Society. The money will help support Cleveland’s budding entrepreneurs. More than 260 attended the event, which was sponsored by the Shaker Heights Development Corporation.
 
“It was huge,” says LaunchHouse co-founder Todd Goldstein. “There were entrepreneurs, business leaders, successful CEOs of companies and people from the city of Shaker Heights. We even had people who flew in from out of state. It was a broad range of people supporting the entrepreneur community.”
 
The money will be used to support LaunchHouse startups and for programming. Specifically, Freebie Fridays, when people can come into the offices to work and pitch their ideas, will continue. LaunchHouse will also continue its support of the LightHouse Entrepreneurial Accelerator Program (LEAP), a program targeted at high school students.
 
Goldstein points out that LaunchHouse staff will assist anyone with an idea. “We never turn an entrepreneur away,” he says. “If an entrepreneur shows up at our door, we’ll work with them. And we’ve helped hundreds of small business owners who come in on Thursdays for open office hours and one-on-one business advice from our team members.”
 
Since its founding in 2009, LaunchHouse has invested in more than 40 companies, with more than 100 working directly out of LaunchHouse.
 
“Our advanced goal is to be an idea hub in the region,” says Goldstein. “Seeing that many people come out really is a testament to all the entrepreneurial activity happening in Shaker Heights.”
 
Stephanie Colangelo, director of public relations and marketing, adds that LaunchHouse has a solid relationship with other entrepreneurial support organizations. “If something is not necessarily for LaunchHouse, we direct them to JumpStart or Bizdom,” she explains. “And they do the same for us.”

 
Source: Todd Goldstein, Stephanie Colangelo
Writer: Karin Connelly
cleveland named by msn as 1 of 10 coolest cities in the midwest
In an MSN slideshow titled “10 coolest cities in the Midwest,” Chelsea Lin proclaims our fair city of Cleveland as one of them due to its musical history and art.  Oddly enough, nothing about the phenomenal dining scene is mentioned as a factor of coolness.
 
In proclaiming what’s cool: “There’s more than just rock ’n’ roll culture at play. The Museum of Contemporary Art, Cleveland’s brand-new mirrored digs, is a lesson in modern art itself, a stunning piece of interesting architecture.”
 
Read the full blurb and check out the other cities on the list here.
nonprofit makes getting federal returns less taxing for disadvantaged families
Filing a federal income tax return is far from the most enjoyable activity one can do. It can even be intimidating for people who don't understand the process or know they are eligible for an Earned Income Tax Credit (EITC).

Enterprise Community Partners, a nonprofit providing free tax preparation and other services to low- and middle-income Cuyahoga County residents, aims to bridge the knowledge gap and help hard-working individuals and families keep more of what they earned. Nationwide last year, the average credit handed out was about $2,200, but the credit can provide as much as $5,900.

"About 20 percent of people eligible for [EITC] don't claim it," says Mark McDermott, Enterprise vice president and Ohio market leader. "We get the word out."

That word is spread in conjunction with the Cuyahoga County Earned Income Tax Credit Coalition and a host of other local partner organizations. This tax season, Enterprise has recruited over 350 IRS-certified volunteers to assist in the effort.

Eligible residents can access the free service by dialing the United Way of Greater Cleveland's 2-1-1 help line. Appointments are scheduled at one of 25 sites located throughout the country. There are also a handful of Saturday free tax-preparation events taking place right up until filing day.

During the past seven years, more than 55,000 participants have received over $77 million in refunds and saved millions of dollars in fees from paid tax preparers, notes program director Kathy Matthews.

"That's about $13 million going back into the local economy," says Matthews.

Tax help isn't Enterprise's only offering. Those who use the service also have access to benefit screenings, debt management and more.

"The tax work is our foundation," says McDermott. "This has proven to be a great program."
 
 
SOURCES: Mark McDermott, Kathy Matthews
WRITER: Douglas J. Guth
fast-growing toa earns forbes honors as one of the 'most promising companies in u.s.'
TOA, a developer and provider of field service and mobile management applications, was named to the Forbes Most Promising Companies in America list, ranking 81 out of 100 and the only Ohio company on the list of privately-held, high-growth companies. TOA went through a rigorous application process to be chosen from thousands of applicants.

“It’s a big honor for us,” says John Opdycke, TOA’s vice president of worldwide marketing. Opdycke and others involved kept the application process a secret until they found out they made the list last week. “Co-founder Yuval Brisker was just over the moon.”

Criteria for the honor included sales and hiring growth, quality of the management team and investors, market size and key partnerships. “It says TOA is a great place to work, our technology solves a problem that reaches a lot of people and we’re recognized as a technology innovator,” says Opdycke.

TOA’s ETAdirect Mobility App provides accurate, up-to-the-minute workforce management on any browser for in-home services – making sure the service people arrive on time.

The Forbes recognition is not only good for TOA’s business, but it helps put Cleveland on the map for technology business as a whole. “We absolutely enjoy and embrace the role of visionary of technology in Northeast Ohio,” says Opdycke. “You think the only companies on the list are in the Silicon Valley, New York or Boston. But you can be doing technology in Cleveland and doing business all over the world.”

Opdycke says the title helps attract top talent and customers from around the country, as well as locally. “It’s a great acknowledgement that we’re a company on the move and were growing,” he says. “It helps us attract people -- the best and the brightest -- retain our customers and attract new customers."

TOA employs 425 people worldwide, with more than 50 in its Beachwood headquarters. Opdycke predicts significant growth in the upcoming year, while continuing to foster creativity among TOA’s current employees and providing top customer service.

 
Source: John Opdycke
Writer: Karin Connelly
q & a: will tarter, jr., president of cleveland young professional senate
Will Tarter, Jr. stands out as a leader among Cleveland’s young professional community. As the charismatic head of the Cleveland Young Professional Senate, he champions causes and issues that impact this highly in-demand demographic, not to mention the long-term well-being of Cleveland.
csu wind power co. wins clean energy challenge, heads to chicago for regionals
For the second year in a row, Amplified Wind Solutions competed in the Ohio Clean Energy Challenge. This year the company won $10,000 and a trip to Chicago for a chance to win $100,000 in the Midwest competition.

Amplified Wind Solutions has designed a wind amplification system that can produce up to six times more electricity than a typical wind turbine. The company is targeting the telecommunications industry.
 
AWS CEO and co-founder Niki Zmij had eight minutes to present the company to the competition judges. They were the second company to present, but Zmij felt prepared and that she answered the judges’ questions well. Apparently, she was right.
 
“The winner was not to be announced until the awards reception at the very end of the day, but during our judges’ feedback session they decided to tell us early that we had won,” says Zmij. “They said our presentation really set the bar for the entire day, and wanted to ask us to present again at the awards ceremony so the other teams could hear our pitch. It was such a huge compliment.”
 
AWS is a Cleveland State University company co-founded in February 2012 based on technology invented by Majid Rashidi, chair of CSU’s engineering technology department. Other company members include Terry Thiele, director of sustainable product strategies at Lubrizol Corporation and Jon Stehura, financial manager at Laird Technologies and former CFO of Park Ohio.
 
The company has prototypes at CSU and Progressive Field. They have now completed designs for a third prototype, and Zmij is in discussions with several telecom companies about installing the pilot model on their towers. They are also looking for a manufacturing partner. Zmij predicts AWS will be ready for commercial sale in 2014.
 
If AWS wins the Midwest challenge in Chicago, the company will proceed to the national competition, for a chance to win an additional $100,000.
 
Zmij will earn her MBA in August and will stay with AWS full-time. “I'm fairly certain the entrepreneurial bug has given me the entrepreneurial virus,” she says. “I don't anticipate it going away any time soon.”

The company anticipates hiring additional staff in the third quarter of this year.

 
Source: Niki Zmij
Writer: Karin Connelly
buffalo orders up big platter of cleveland dining awesome-sauce
In a Buffalo News feature titled “Chow down on Lake Erie,” food writer Andrew Galarneau highlights the thriving culinary scene in Cleveland and wonders how and why it differs from Buffalo’s own food scene.
 
Galarneau, questioning local food scribes like the PD's Joe Crea and this pub's own Douglas Trattner, delves deeply into the likely causes for Cleveland's disproportionate maturity when it comes to food and dining. Many of the city's finest chefs are mentioned in the piece.
 
"How did Cleveland get so awesome?" Galarneau muses aloud.
 
“When Symon said, ‘Cleveland is awesome, check it out,’ he wasn’t lying,” Trattner, a restaurant critic and author, is quoted in the piece. “Anybody can get up there and talk about their hometown, but he had stuff to back him up, so it wasn’t just ‘Here’s what I’m doing’ but ‘Here’s what Cleveland’s doing as a dining town, I’d think you’d be surprised.’ ”
 
The scribe notes that “[Eric] Williams won the undying love of tattooed hipsters and blue-collar types with Happy Dog, a bar that serves 75 beers and $3 boats of Tater Tots with as many of the 19 sauces, ranging from black truffle honey mustard to Oaxacan chocolate mole, as you want. And live polka happy hour on Fridays.”
 
Check out the full tribute to Cleveland and get a sneak peak at Buffalo’s budding scene here.
design firm relocates offices from burbs to st. clair superior's tyler village
Rene Polin founded his design consulting firm, Balance Inc., in Chagrin Falls. Yet as he grew, he felt cut off from creative opportunities in Cleveland. In October, he moved his eight-person, nine-year-old firm to 5,500 square feet of open, custom-built office space in the Tyler Village complex in St. Clair Superior.

"Tyler was the most interesting space we found," he says. "It had great character, an incredibly open floor plan and high ceilings. There was the opportunity to build the space exactly our way as well as to build a physical workshop for prototyping."

"Our offices in Chagrin Falls were a little formal, and we're really pretty informal," he adds. "This space is great because it allows us to run around a little more freely."

Polin has also enjoyed the opportunity to get to know his neighbors at Tyler Village, a place he describes as having the amenities of an industrial park, but "so much cooler." It's also a perk that food trucks regularly show up at chow time.

"The Tyler folks are genuinely interested in bringing forward-thinking companies into the space," he says. "They reach out to companies that are bringing something new. There's a certain vibe and energy you can’t find a lot of other places."

Balance Inc. is one of those forward-thinking companies. Polin, an East Cleveland native, majored in Industrial Design at the Cleveland Institute of Art. Balance works on products like Dirt Devil vacuum cleaners and Ninja kitchen gear.

When the work gets boring -- which we imagine rarely happens -- employees can now find inspiration simply in staring out the window. "We have a straight shot to the north, so we get some pretty incredible sky views. It's a pretty good vista."


Source: Rene Polin
Writer: Lee Chilcote
q & a: tom waltermire, chief executive team neo
regional marketing groups sell northeast ohio, one story at a time
For a number of years at the tail end of the 20th century, Greater Cleveland's public and private leaders attempted to pull the city up through ambitious marketing campaigns. For awhile it seemed to work. The national media began referring to Cleveland as the "Comeback City" in conjunction with the grand openings of ambitious projects like Tower City Center, Jacobs Field and the Rock and Roll Hall of Fame and Museum.
 
But toward the end of the '90s a strange thing happened: The city, for all intents and purposes, stopped marketing itself.
 
Why?
 
"We began to believe our own press," says Rick Batyko, president of the Regional Marketing Alliance of Northeast Ohio, which conducts the Cleveland Plus campaign. And civic officials "moved on to other tasks and defunded marketing."
 
In essence, Northeast Ohio stopped telling its tale with the tale barely begun -- a rather large mistake in retrospect. "The underlying economy wasn't doing that well," Batyko says. "That's something you couldn't see in the skyline shots."
 
During the mid-2000s, the region's narrative thread was picked up by Cleveland Plus campaign. Established in 2005 -- with founding members that included Greater Cleveland Partnership, Positively Cleveland and Team NEO -- the organization champions Northeast Ohio as a culturally rich, yet affordable place to live.
 
Read the rest of the story here.
nonprofit works to bring 'digital literacy' to cleveland's underserved
If Northeast Ohio has a digital divide, then Cleveland-based nonprofit broadband provider OneCommunity wants to lay down enough fiber-optic cable to successfully bridge the gap.

The divide is particularly wide in Cleveland's poorer neighborhoods, says OneCommunity CEO Brett Lindsey. In response, his organization created the Connect Your Community Project (CYC). Since 2010, CYC has provided broadband training, equipment and support for nearly 8,000 Cleveland and East Cleveland residents. The group's work is supported through a $18.7 million grant from the U.S. Department of Commerce’s Broadband Technology Opportunities Program (BTOP).

The organization's new adopters receive a refurbished computer at no cost after matriculating through the training program. They also have the opportunity to receive a free modem and affordable, high-speed home Internet service.

In modern society, everything from job postings to health care information is online, notes Lindsey. The idea is not to give Cleveland's underserved access to solitaire or funny YouTube videos, but an electronic education that will allow them to look up information on their child's school system or connect with far flung family members.

"The haves and have nots in terms of technology are significant," says Lindsey. "This is a way to get people engaged."

OneCommunity is also bringing "digital literacy" to Cleveland families with young people on track for college entry but not currently connected to broadband. Computer training and access can go far in spurring parental engagement in a student's post-high school academic career, Lindsey believes.

So far, so good, says the OneCommunity CEO. In its initial CYC data, 75 percent of parents surveyed used their home broadband connection to communicate with their child's teachers and administrators.

"We have to continue to ensure that people don't get left behind," says Lindsey.

 
SOURCE: Brett Lindsey
WRITER: Douglas J. Guth
wsj calls cleveland an 'overlooked entrepreneurial hub'
In a Wall Street Journal post titled “For U.S. Startups, ‘Times They-are-a-Changing,’” Steve Case, co-founder of AOL, shares his thoughts on entrepreneurship and trends that are changing nationwide, including Cleveland.
 
“I’m convinced that we’re beginning to see a regional 'rise of the rest' as cities like Washington D.C., Denver, Chicago, Atlanta, Raleigh, Cleveland, Detroit and many others experience unprecedented growth in startups. Silicon Valley will continue to be our nation’s most vibrant entrepreneurial hub, but a growing number of companies will start up in these often overlooked places.”
 
“America was built by risk-taking entrepreneurs who throughout history have turned dreams into new businesses, disrupted industries, created new ones and inspired the world.”
 
Check out the full piece here.

to accommodate rapidly growing staff, explorys moves into former museum space
Explorys, which offers a secure software platform that allows healthcare systems to summarize, analyze and manage data, has moved into the former home of MOCA. The Cleveland-based company currently has more than 80 employees and is expected to climb to between 110 and 125 by next year.
rising info tech salaries help local companies attract, retain best workers
Salaries for technology professionals working in Cleveland rose by double percentage points over last year, according to the 2013-2012 Dice Salary Survey from Dice, a career site for technology and engineer professionals.

Salaries for tech and engineering jobs rose 11 percent in the city, compared to the national average of just 5.3 percent. The average salary in 2012 was $75,773, compared to $68,519 in 2011 and $65,045 in 2007, according to the report.
 
“It’s really good to see, from a career perspective, salaries going up,” says NEOSA director Brad Nellis. “We like to see more students go into IT after high school because the pipeline is not full enough. The salaries drive more interest among students to go into IT.”
 
Nellis reports that 82 percent of NEOSA companies had job openings last year, and 73 percent expected to add staff this year. Given Cleveland’s cost of living, the salary increase gives the area an advantage, especially when the 11 percent growth ranked Cleveland fifth out of the seven cities that saw double digit tech salary growth.
 
While some of the smaller and startup tech companies in the region may struggle a bit to offer the higher salaries, JumpStart recruiter Kara Hornikel says these companies are also eager to attract the best employees. “Our startups want to attract and retain top talent,” she says, adding that one third of the 50 to 70 open jobs at JumpStart companies are in IT.
 
There are advantages to working at a startup tech firm too. “It’s a lot more exciting for a developer to work in a startup environment,” says Hornikel. “They get a lot more say from start to finish and they get to stretch their creative skills.”
 
The increase gives technology companies in Cleveland the ability to attract and retain talented employees from both within and outside the region. “Northeast Ohio is starting to recognize how important attraction and retention is,” says Sean Turner, senior recruiter at JumpStart. “We’re trying to be more competitive about attracting talent here. With the salary increases compared to the national average and the cost of doing business here, you get more bang for your buck.”

 
Sources: Brad Nellis, Kara Hornikel, Sean Turner
Writer: Karin Connelly
growing background check provider safecare transitions into the b2b market
SafeCare, which provides continuous monitoring and background checks of employees in the healthcare industry, received a $25,000 grant in November from the Innovation Fund. The money will help SafeCare expand and refocus the company, which was formed out of Bizdom Cleveland’s inaugural class in April 2012.

The grant will allow SafeCare to concentrate more on the B2B market, rather than the consumer market. The company monitors employees on a monthly basis against nationwide healthcare and criminal public data sources.

“We will be using that money to really concentrate on flushing out our B2B offerings,” explains SafeCare founder and CEO Lissette Rivera. “We’re moving away from consumer products because of the sticky situations you can have when you share people’s information.”
 
SafeCare is in the process of re-designing their website to create a more personal feel. “We’re focused on providers rather than families, and our website will have a more warm and fuzzy feel,” Rivera says. The new website should launch by the end of this month.
 
SafeCare has three clients spanning nine healthcare facilities. Rivera has grown the company to four employees -- a CTO, two contract employees and a paid intern -- and is hoping to hire a salesperson in the next six months. “We’re fast moving in the direction of creating more and more jobs,” boasts Rivera.

 
Source: Lissette Rivera
Writer: Karin Connelly