Stories

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

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

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

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

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

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

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


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

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

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

 
Source: Dave Karpinski
Writer: Karin Connelly
bigBANG!, for 'maximum social impact'
Kicking off what is being billed as "A Day of Social Innovation," bigBANG! will shine the spotlight on a number of innovative local nonprofits that are benefitting our community. The day-long forum, hosted by Cleveland Social Venture Partners (CSVP) and taking place at the CSU Student Center, is the event's inaugural year.
shaker is a model worth emulating, says pittsburgh tribune-review
In an article titled "Cleveland's Shaker Heights is a model worth emulating," Pittsburgh Tribune-Review writer John Conti describes the attractiveness of this well-planned neighborhood, which will celebrate its 100th anniversary in 2012.
 
Thanks to the Van Sweringen's keen vision and planning, Shaker "appealed to the upper-middle classes in Cleveland in the 1920s, and the result today is neighborhood after neighborhood of stunningly good-looking houses built in the '20s and '30s. Some of these houses are mansions, some are just big, and some are modest. But all are still exceptionally attractive today."
 
The article goes on to describe with great detail just how the Van Sweringen brothers turned their vision into reality.
 
"[They] began accumulating land here in the early 1900s. In the teens and '20s, they laid out lots to sell and developed a rapid transit line directly into the center of Cleveland. They also set down the rules for what the owner-built houses in Shaker Heights would look like."
 
Those rules dictated that "houses were to be in the romantic Tudor, Colonial or French styles popular in the '20s. They had to be individually designed by architects. Brick and stone walls and slate and tile roofs were encouraged. Tudors had to have dark trim; only Colonials could have white. Buff-colored brick and certain colors of mortar were forbidden. Even the look of leaded-glass windows were regulated. Finally, the Van Sweringens had to approve every design."
 
All that would have been meaningless if the houses were not maintained. So the city inspects the exterior of every home every five years. An architectural review board must approve any changes to the exterior of a house.
 
"These are undoubtedly some of the toughest municipal standards anywhere in the United States," Conti writes. "And they can cost money. Considering its top-tier school system, Shaker Heights residents pay the highest property taxes in Ohio. Yet real estate people here will tell you that -- though the general real estate market in Cleveland has been abysmal in recent years -- Shaker Heights houses have held their value."
 
Read the entire report here.
slavic village apartments to receive $1.4m green makeover
Enterprise Community Partners, a national nonprofit organization, wants every affordable housing unit in the U.S. to be green by 2020. Now, thanks to that bold ambition, a Cleveland apartment building will receive a green makeover, making it healthier and more energy-efficient for the people that live there.

Enterprise recently announced that it had closed on its first loan in the Ohio Green Communities Retrofit Fund, a $1 million program to renovate older apartment buildings so that they are more energy-efficient. Harvard Village Elderly Apartments, a 49-unit rental building for low- to moderate-income seniors owned by National Church Residences, will receive a $250,000 loan from the Fund.

National Church Residences plans a $1.4 million retrofit for the property, including new windows and doors and new insulation. The rehabilitation project will be funded by the Ohio Weatherization Assistance Program, the City of Cleveland and owner equity, in addition to the Enterprise loan.

"The theory we're trying to prove is that the savings realized by completing energy retrofits are more than sufficient to pay off the low-interest rehab loan," explains Marc McDermott, Vice President of Ohio Enterprise Community Partners. "It's a tough proposition, because you've got to have an owner that is confident in the energy audit's recommendations and willing to take on debt."

The Harvard Village Elderly Apartments was built as a schoolhouse in 1920. Slavic Village has become known for its commitment to sustainability initiatives, including community gardens, the Green Corps learning farm and a farmers' market.


Source: Marc McDermott
Writer: Lee Chilcote
downtown building boom attracts new four-star westin
The building boom kicking up dust in downtown Cleveland soon will give visitors to the Medical Mart, Convention Center and Horseshoe Casino another spot to lay their heads after a night out on the town. Optima Ventures and Sage Hospitality have purchased the former Crowne Plaza Cleveland City Centre hotel and plan to spend $64 million to renovate it into a new, luxurious 481-room Westin Hotel.

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

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

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

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

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


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

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

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

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

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

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


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

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

Accompanying those listings is an interactive map.

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

Digest the entire meal here.
sironrx gets third frontier funding for clinical trials, staff growth
SironRX Therapeutics, which spun out of Juventas Therapeutics and the Cleveland Clinic almost a year ago, is finding marked success in healing wounds. The company received $1 million in Third Frontier funding to continue clinical trials in wound healing.
 
“What we observed at Juventas in treatments for heart disease, we have observed in wound treatment with the same product,” explains Rahul Aras, SironRX president and CEO. “With SRX100, we accelerate treatment in dermal wounds and prevent scarring. While normal healing occurs in about 21 days, healing occurred 20 to 30 percent faster with significantly less scarring with our product.”
 
The product will be used in post-surgical incisions, chronic diabetic ulcers and burns. SironRX’s goal is to develop a cost-effective interactive wound therapy that can be topically administered with the potential to significantly improve function of the damaged tissue.
 
“It’s a great concept, applying concepts that make the body heal,” Aras says. “Repairing injured organs to heal themselves, I think that’s pretty exciting.”
 
As clinical trials continue, SironRX will be ramping up a full-time management teams, including a full-time CEO, and operational staff.

 
Source: Rahul Aras
Writer: Karin Connelly
tribe's soon-to-be-installed wind turbine generating green buzz
"There will soon be a new homerun target for batters at Progressive Field," writes Alice Henly, a research fellow with the Natural Resources Defense Council. "At the top of the south-east corner of the ballpark, down the first base line, the Cleveland Indians will be installing a micro wind turbine in March 2012."
 
The Tribe has partnered with Cleveland State University’s Fenn College of Engineering on the project, which features an innovative helical design. The 18-foot wide cylinder rotates constantly to find the most turbulent wind to keep the four 6-foot turbines spinning. The project hopefully will boost regional renewable job opportunities by providing a real-world test of a locally-manufactured technology.
 
The turbine is anticipated to generate a minimum of 40,000 kWh/year, the amount of energy it takes to power four average American households for a year. The turbine joins the Tribe's other green measures, including a 42-panel solar electric system, a comprehensive composting program, only purchasing paper products made of 100 percent post consumer content, and only using Green Seal certified cleaning products.
 
Read the rest of the program here.
tribe's snow days hailed as 'best solution yet' for empty stadium
"There's only one thing more depressing come October than the end of baseball season: the sight of an empty ballpark," Emily Badger writes for The Atlantic. "It's a bitter scene for baseball lovers. But it’s an economic conundrum for cities, too."

Noting that most cities with both pro baseball and football teams now possess separate stadiums for each, the article points out the economic imprudence of multimillion dollar structures that attract tourists just 81 days out of the year.

But what to do with an open-air baseball stadium in the Midwest in mid-winter? the writer asks rhetorically.

"Progressive Field in Cleveland may have come up with the best solution yet to the empty ballpark. Last year for the first time, the team converted the field into a vast winter playground," says the writer, referring to Snow Days.

“When you have lemons, you make lemonade,” says the Cleveland Indians' Kurt Schloss. “In our particular case, we wanted to embrace the cold, embrace Northeast Ohio, because that’s what it is. You can’t put up palm trees and hope for sand.”

New this year is an ice rink that will host youth hockey tournaments and the Jan. 15 marquee matchup between Ohio State and the University of Michigan, which is expected to sell-out of the stadium.

"This is really kind of a brand new concept, it’s taking it into a wholly new dimension,” says Joe Marinucci from Downtown Cleveland Alliance. “I can’t imagine why a franchise would not want to use a facility like this,” he says, “when normally it would be dormant for four or five months.”

Read the rest of the report here.
cle and other ohio cities sitting pretty as IT jobs continue to grow
While U.S. job growth overall might be stuck in neutral, IT professionals should be chomping at the bit. Experts say technology occupations will be at the leading edge of job growth for at least the next decade. Better still: Three of the hottest cities for IT jobs right now are here in Ohio.
cleveland clinic unveils top 10 medical innovations for 2012
Unveiled during the recent 2011 Medical Innovation Summit, the Cleveland Clinic announced the Top 10 Medical Innovations for 2012. The list of breakthrough devices and therapies was selected by a panel of Cleveland Clinic physicians and scientists.
 
Nominated innovations were required to: Have significant potential for short-term clinical impact; Have a high probability of success; Be on the market or close to being introduced; Have sufficient data available to support its nomination.
 
Among them are:
 
Genetically modified mosquitoes to reduce disease threat.
 
Novel diabetes therapy that represents a paradigm shift in diabetes treatment.
 
Harnessing big data to improve heath care.
 
Active bionic prosthesis with microprocessors and computer chips that can rival the functionality provided by biological limbs.
 
Implantable devices to treat complex brain aneurysms.
 
Next-generation gene sequencing to get to the root cause of serious illness.
 
Medical apps for mobile devices.
 
Concussion management system for athletes that provide patient-specific guidance about when athletes can return to play without risk of further harm.
 
CT Scans for early detection of lung cancer.

Read the full report here.
 
jumpstart report shows the economic value of small start-ups
Young, tech-based companies have a major impact on Northeast Ohio’s economy. In a report created by Cleveland State University and commissioned by JumpStart, 90 startup companies generated $155 million in revenue and created 1,000 jobs in 2010.
 
“Our objective with this report is to make sure people know why entrepreneurship is important to the community,” says Cathy Belk, chief relationship officer with JumpStart. “These are all early-stage companies. There were no mature companies or public companies included."
 
The study asked nearly 200 JumpStart client companies for feedback on revenue and jobs. The survey results are based on the 90 who responded. “This report is a real benefit to the community,” says Belk. “These numbers really make that quantitative and understandable.”
 
The companies surveyed increased state and local tax revenues by $7.5 million and federal tax revenues by $10.8 million, for an overall 2010 tax impact of $18.3 million. “The companies themselves are sometimes beneficiaries of state and federal monies, and that money is being returned to the government as the companies grow.”
 
Belk sees the report as an optimistic view of the future for the entrepreneurial climate in Northeast Ohio. “This offers a lot of promise,” she says. “A lot of these companies are going to continue to grow and continue to create jobs. Imagine what this will look like in five years.”

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

 
Source: Steve Millard
Writer: Karin Connelly
csu study explores economic impact of shale in ohio
Cleveland State University is part of an economic impact study of shale in Ohio and its potential to give a big boost to the state’s economy. Ohio State and Marietta College are also participating in the study, commissioned by the Ohio Chamber of Commerce on behalf of the Ohio Shale Coalition.
 
The study focuses on the economic impact of drilling for gas and oil in the Utica Point Pleasant and Marcellus shale formations that run along the eastern half of the state. “It would be a nice change for Ohio to be making money in gas and oil instead of losing it,” says Andrew Thomas, executive in residence in the Energy Policy Center at CSU’s Maxine Goodman Levin College of Urban Affairs.
 
The group does not yet have concrete numbers on the oil and gas potential, but should have them by next year. But they do know that the natural resource could have a significant positive impact on a variety of industries in the area, from the steel and construction companies to manufacturers and associated businesses.
 
This study could improve industry across the board if the potential in shale proves to be what speculators believe it to be. “The big benefit and early benefit will be with the land owners,” says Thomas. “We’ve been exporting money out of the state for a long time. It would change the economy of Ohio.”

 
Source: Andrew Thomas
Writer: Karin Connelly
30-year-old globetrotter to open 60-bed hostel in ohio city
Thirty-year-old Mark Raymond has stayed in hostels all over the world, and now he's bringing his passion, ideas and money to Cleveland to create a 60-bed hostel on West 25th Street in Ohio City.

"A hostel is a very valuable asset for a city to have, and I think Cleveland is a good place to start one," says Raymond. "Hostels attract nontraditional travelers on a shoestring budget, and if a city doesn't have a hostel, many will skip over it."

The Cleveland hostel, which will be located at 2084 West 25th Street, in a building that is owned by real estate developer MRN Ltd., will offer dormitory-style accommodations as well as private and family rooms. Beds will start at $25 per night, and a shared kitchen will be available. Raymond is investigating the possibility of creating a rooftop patio and bike rental facility, as well.

Identifying a location that is well-trafficked and easily accessible to public transportation was key to making his new venture successful, says Raymond. Many hostel clients prefer public transportation or walking to get around. "People can stay in the 'burbs for $30 a night in Cleveland, but they can't get to the city and they don't have the communal aspect of a hostel," he says.

Raymond found the location he was seeking in Ohio City, which has recently experienced a boom of new businesses opening and developers rehabilitating buildings. "Ohio City is a good location because there's so much to do. It's close to downtown and there's good public transportation connections."

Raymond hopes to open the new hostel in May, just in time for the celebration of the West Side Market's centennial and the summer traveling season.


Source: Mark Raymond
Writer: Lee Chilcote
what's working in cities: placemaking
As an approach to planning, designing and managing public spaces, “placemaking” is gaining momentum across the country. This strategy gives local residents a voice in shaping new development so that addresses their needs as opposed to those of the developers. Simply put, placemaking is likely the best path to improving a neighborhood, city or region.