Entrepreneurs + Innovators

contemporary housing is attracting empty nesters to historic little italy
Tucked between University Circle and Cleveland Heights, Little Italy is one of Cleveland's most charming and historic neighborhoods. Aluminum-sided doubles nestle against modern pastel-colored townhomes, while art galleries and Italian restaurants dot Mayfield and Murray Hill roads.

Although Italians no longer are the neighborhood's predominant ethnic group, much of the real estate is still owned by the Italian families that settled here nearly a century ago. Popular with Case Western Reserve University students and hospital employees, the area's mix of residents now reflects the diversity of University Circle.

Yet while today's Little Italy may have "just as many Chinese as Italians," says Ray Kristosik, Executive Director of the Little Italy Redevelopment Corporation, a new wave of immigrants is arriving on these shores, and they're less likely to come from Sicily than Mayfield Heights and Solon.

"Empty-nesters are beginning to move back to the area, including Italian-Americans that have family roots in the neighborhood," he says. "People love its proximity to University Circle, and the fact that while we have development, parts of the Little Italy look just like they did 80 years ago."

The influx of empty-nesters has been facilitated in part by the development of new and rehabilitated housing. Townhome projects such as Villa Carabelli, Random Road Lofts and 27 Coltman have provided contemporary, upscale housing choices for professionals seeking a low-maintenance lifestyle.

Although Kristosik says that it's important to ensure that that the area's historic housing is preserved, he believes that the new development taking place is contributing to the area's revitalization by attracting people to move back to the urban core.

In fact, Kristosik is looking forward to the day his own kids head off to college. "I can't wait for them to grow up so I can move back to the neighborhood," he says.


Source: Ray Kristosik
Writer: Lee Chilcote



murray hill market will expand indoor offerings to outdoor space
When Murray Hill Market opened in Little Italy in January, owner Michelle Iacobelli Buckholtz revived the tradition of the small neighborhood market that existed when her father grew up in the area.

This summer, Buckholtz will bring back another grand neighborhood tradition: the sidewalk cafe and alfresco market. Having obtained her peddler's license, she plans to add outdoor seating and sales displays this summer.

"We want to be different from Whole Foods and other grocery stores, and one way to do that is to offer a unique experience and personal service," says Buckholtz.

Buckholtz says that Murray Hill Market, which offers fresh fruits and vegetables as well as gourmet prepared foods, has been successful at reaching a wide audience, including students living in the neighborhood, older Italian families seeking to reconnect with their roots, University Circle employees and East Siders who work downtown. "People stop to pick up dinner on their way home," she says.

Buckholtz was inspired to create the market after a trip to New York to visit her son in college. After she observed the mouth-watering, fresh fare at every corner store, she decided to create a market in Cleveland. She knew it would work because there are no fresh, high-quality grocery stores in University Circle, an area that is on track to create 10,000 new jobs between 2005 and 2015.

Yet her international-flavored market, which Buckholtz describes as "Italian with a twist," does not seek to recreate the past. Although Little Italy's restaurant mix remains mostly Italian, the Murray Hill Market offers a contemporary mix of cuisine, including Jewish and French pastries, Middle Eastern dishes, and Puerto Rican rice and beans.

"This area is part of University Circle, and I wanted to create an international market with more than just Italian food," Buckholtz says.

Buckholtz regularly serves meatball subs with her mother's sauce, yet finds the older Italian women that shop here are often the toughest critics. "Everyone's mother makes the best sauce," she says with a laugh.


Source: Michelle Iacobelli Buckholtz
Writer: Lee Chilcote


bnet includes cleveland in list of best places to find a great job
BNET, CBS's interactive business network, includes Cleveland among its listing of Fifteen Best Cities to Find a (Great) Job. The list is based on an analysis of Indeed.com job listings.

Coming in at Number Three, Cleveland is listed as the "Comeback City."

"Once a manufacturing town, Cleveland was hit hard as factories closed. But the city fought back, nurturing the service sector and attracting employers from Sherwin-Williams to NASA. Some areas of the city remain rough, but sports fans get a local NFL, NBA and Major League Baseball team and music lovers have the Rock 'n' Roll Hall of Fame."

Also on the list are Columbus, Austin, Baltimore, Seattle, New York, and Boston.

Read the rest of the good news here.

small business owners will voice their concerns at capitol on cose day
COSE members will bring their causes to Columbus on Wednesday, May 25, for COSE Day at the Capitol. For the past five years, COSE members have used the day to meet with policy makers, network and bring their issues to the table.

"People don't have to be political," says Brynn Allio, director of government and external relations for COSE. "They just have to be willing to share their stories."

About 50 participants will board a bus in Cleveland at 6:30 a.m. at the Holiday Inn Independence and attend a reception breakfast at 9:15 a.m. in Columbus. Members will then spend the day talking to legislators -- speaker of the house William Batchelder, senate president pro tem Keith Faber, senate minority leader Capri Cafaro, and BWC administrator Steve Buehrer.

"They will break into groups to meet with the legislators and talk about their issues of concern," explains Allio. "Small business owners are really busy, but they are taking a day to talk with legislators. It's always nice when legislators connect with small business owners and we like to facilitate that when we can."

Some hot topics Allio expects to be covered include access to capital and healthcare. "Small business owners generally want to be able to offer health insurance to their employees, but it's increasingly difficult with rising rates," she says.

The day culminates with a reception before participants board the bus home to Cleveland. The event is only open to COSE members and costs $20 for the day. Call 216-592-2497 for more information.


Source: Brynn Allio
Writer: Karin Connelly


it takes a village: a redevelopment story for the ages
When Tyler Elevator moved its facilities to the 'burbs, it left behind over one million square feet of vacant warehouse space. A labyrinth of two-dozen brick buildings spread across 10 acres, Tyler possessed more than its share of challenges when it was acquired by Graystone Properties. Today, Tyler has been reborn as a thriving entrepreneurial district -- a bona fide urban village on the fringes of downtown.
ohio city architect preserves landmark building
Architect David Ellison had been watching the dilapidated cluster of buildings at the southwest corner of W. 41st and Lorain fall apart for years. His dismay only grew as copper thieves looted the property, rainwater poured through the roof, and illegal activity soared in the shadows of the boarded-up building.

When Ellison learned that the City of Cleveland had granted a permit to tear the buildings down, he decided to do something. "One way to improve real estate values is to remove eyesores," he says. "Since I'm a homeowner in the neighborhood, I wanted to protect my investment."

Ellison had a different idea. He purchased the condemned buildings from Ohio City Near West (now Ohio City, Inc.). Four years later, thanks to extensive renovations, he has preserved an important piece of Ohio City's history. After peeling off layers of rotting additions, he brought back to life a beautiful brick Victorian. During the intervening span, he battled city bureaucracy, cost overruns, the credit crunch and the recession.

Ellison recently moved his architectural offices into half of the first floor, and has plans to renovate the second floor as leasable office space. He has applied for financing to finish the project, but has not been able to obtain a loan in part because Lorain Avenue's commercial rental rates make it difficult to justify the costs.

Renovating the upstairs into apartments is another option, but financing for mixed-use projects is notoriously difficult to obtain. "It's tough to get financing for a residential project in a commercial zone," he says.

Although he's discouraged by the slow pace of his project, Ellison says that Lorain Avenue has steadily improved over the years, and his renovation has helped. "The street needs more occupancy so we can push the criminal activity away," he says.

Ellison says that the rebirth witnessed in the Gordon Square Arts District can happen here. The key to success, he says, is diversifying the retail offerings on Lorain so that they serve local residents' needs while also attracting shoppers that live outside the neighborhood.


Source: David Ellison
Writer: Lee Chilcote

wsj calls playhousesquare 'model of economic viability'
Writing for the Wall Street Journal, Joel Henning, arts and culture reporter, calls Cleveland's PlayhouseSquare "a model of economic viability in the arts."

"Several Cleveland performing-arts and public-media organizations are in better shape than their counterparts around the country because they are part of PlayhouseSquare, a unique business model in downtown Cleveland," Henning writes.

PlayhouseSquare, the second-largest performing arts center in the country by audience capacity, boasts 10 performance spaces with a total of more than 9,000 seats. It attracts more than a million visitors to 1,000 performing-arts events each year.

What makes PlayhouseSquare unique, the article states, is that it not only renovated and manages the spaces, but also created a local development corporation that owns and/or manager more than 2.6 million square feet of office and retail space.

Next up, reports Henning, is housing. Quoting PlayhouseSquare's Allen Wiant, "We want to build 58 stories of housing in the next few years."

Unlike years past when few lived downtown, there are now 12,000 downtown residents and the residential occupancy rate is at 95%.

Read the rest of the playbill here.

more food truck round-ups to pop-up in the 216
While the City of Cleveland sorts out the particulars of the new food truck legislation, food truck operators and fans continue to find ways to congregate.

Now into its third month, the undeniably successful C-Town Chow Down has just announced the specifics of the next tweat-up. Scheduled once again for Tremont's Lincoln Park, the event will take place May 22, from 11 a.m. to 3 p.m. Expected food rigs include Cakes Plus, JiBARO, Nosh Box, Seti's Polish Boys, StrEat Mobile, Zydeco Bistro, Umami Moto and more.

To celebrate the fifth anniversary of Momocho, chef and owner Eric Williams decided to host a food-truck hoedown. From 6 to 9 p.m. this coming Monday, May 9, the Momocho parking lot will be filled with popular rigs serving the best mobile fare. In addition to Short Rib One, Rocco Whalen's aptly named Fahrenheit truck, guests can hit JiBARO, Dim and Den Sum and Umami Moto.

Momocho will open its restaurant and patio for seating and drinking only. Traditional margaritas will be offered for $5 and Tecate beer for $2.

For these and all food truck events, bring cash.
spr therapeutics technology to tap into $150B pain market
Cleveland-area SPR Therapeutics is tackling the chronic pain market with its Smartpatch technology. The Smartpatch external stimulator delivers an electrical signal to an electrode placed in the muscle. The electrical signals stimulate the target nerve within the muscle, thereby exercising the muscle to treat the pain. The Smartpatch system will serve the $150 billion pain market, in particular those suffering shoulder pain from strokes, as well as chronic lower back pain.

"It's a very simple short-term therapy that can eliminate chronic pain," says Maria Bennett, president and CEO of SPR. "It can be administered by a surgeon or non-surgeon, has no side effects and is completely reversible."

The company, which was founded in January 2010, is a spinoff of NDI Medical, which developed the technology and licensed it SPR. JumpStart Ventures announced last week that it will invest $250,000 in SPR Therapeutics to help bring the technology to market later this year or in early 2012.

"JumpStart's investment really allows us to complete the commercialization," says Bennett. "It helps us get to market, be prepared with all the pieces and parts so we can really hit the ground running."

Meant for use up to 30 days, Smartpatch has also demonstrated long-term pain relief. The company's series of clinical feasibility studies demonstrated that, at the end of the short-term therapy, 84 percent of patients experienced a significant reduction in pain and 40 percent were pain free. After completing the Smartpatch therapy, 78 percent of these patients continued to have significant pain relief.


Source: Maria Bennett
Writer: Karin Connelly


as gift card purchases explode, so too does cle-based sparkbase
More then $140 billion in gift cards are purchased each year, generating more than $1.8 billion in associated transaction fees. SparkBase, a Cleveland company founded in 2004, is the industry leader in software processing of gift cards, reward and loyalty programs. SparkBase's software makes sure purchases are recognized when a gift card is swiped, measures demographics, and tracks buying habits on rewards cards.

This time last year, SparkBase had a handful of customers and seven full-time employees. Today, the company has grown to 20 employees.

"Lately we have grown exponentially," says Andrew Kraynak, vice president of marketing for SparkBase. "In the past six to nine months we have really seen things take off."

In fact, SparkBase is hiring 10 more people to keep up with current needs. The company is looking for everything from client service managers to Java developers. "We're staffing based on current needs," says Kraynak. "We'd like to be ahead of the curve and hire ahead of the curve."

Kraynak attributes SparkBase's success to hard work by the company's founders. "A small company takes time to get traction and for the message to resonate," he says. There was a lot of heavy lifting by the founders and we're beginning to see the fruits of that."

Kraynak also gives a nod to Cleveland's support of small business. "A lot of people believe in us," he says. "Clevelanders are working together and they are supportive of small business here. Many of our investors are from Northeast Ohio."


Source: Andrew Kraynak
Writer: Karin Connelly


bonbon pastry and cafe to open in market district
Pastry chef Courtney Bonning plans to open Bonbon Pastry and Café this summer in the former Athens Bakery shop at W. 26th and Lorain Avenue, further boosting available food offerings in Ohio City.

"We'll be opening a full bakery that will serve fresh, handmade croissants and desserts as well as a European-style café," says Bonning. "You'll be greeted by beautifully prepared items when you walk in the door, all priced below $15."

Bonning worked in Napa Valley, Seattle and the Cleveland Ritz-Carlton before launching her own bakery a couple years back in Detroit Shoreway. She was inspired to make the leap to the new 2,000-square-foot storefront after witnessing the momentum of the Market District. The new businesses popping up around the West Side Market will help drive traffic to her café, she says.

Bonbon will also serve a brunch-style menu featuring sandwiches, salads, small plates and egg-based dishes. In the summer months, tables and chairs on Lorain will transform it into a sidewalk café. It will be open from 6:30 a.m. until 9 p.m.

Bonning is especially excited about the businesses opening in the adjacent United Bank Building, which is owned by MRN Ltd., the developers of East Fourth Street and Uptown in University Circle. Penzeys Spices opened last year, and this summer, Crop will open its new location.

"We fell in love with the historic bank lobby, a gorgeous space with high ceilings, and we're sold by MRN's commitment to changing the neighborhood," says Jackie Schimoler, co-owner of Crop with her husband Steve. "It's a great location."

Next door to the restaurant, the Crop Shop will feature fresh, locally grown food such as heirloom tomatoes or specialty sausages used in Crop's dishes. Schimoler envisions it as a separate venture that feeds the restaurant, and vice-versa. "Whatever product we don't sell at the market, we'll just use at the restaurant."


Source: Courtney Bonning, Jackie Schimoler
Writer: Lee Chilcote

ohio city's artisan economy turns the corner onto lorain
For decades, Ohio City's Lorain Avenue has been a symbol of beautiful decay. But thanks to the development boom taking place along West 25th Street, more entrepreneurs are beginning to set up shop on Lorain. Among the additions are a gourmet chili restaurant, vintage clothing store, architecture office and yoga studio -- all part of the neighborhood's burgeoning artisan economy.
cosmic bobbins turns trash into (thoughtful) treasure
Sharie Renee finds the beauty in what most people would deem garbage. As founder and CEO of Cosmic Bobbins in the St. Clair-Superior District, she takes old paper materials -- such as magazines or brochures -- and transforms them into fashionable accessories.

Cosmic Bobbins puts an emphasis on social awareness. As the granddaughter and great-granddaughter of funeral directors, Renee would contemplate on the meaning of life and the importance of giving back.

"When you're always watching the end of life, you think about what it's all about," she says. "We're all here for a period of time and what comes is an ideology on what business is all about and the social good of making the world a better place."

That ideology is the focus of Cosmic Bobbins. The company revolves around recycling -- or upcycling -- while also supporting and employing charitable organizations both locally and internationally.

Renee works with United Cerebral Palsy in Cleveland, employing up to 38 people in a sheltered work environment, and works with Youth Opportunities Unlimited, teaching sewing skills. Internationally, Renee works with a village outside of Mexico City, employing residents for her weaving and folding needs. "We're giving back to the world one magazine at a time," says Renee.

Most of her clients are businesses that also look out for the environment. She has created pencil holders from old annual reports for University Circle Inc., handbags out of old newsletters for the Cleveland Botanical Garden, and scissors cases for Paul Mitchell from old brochures.


Source: Sharie Renee
Writer: Karin Connelly


clevelanders bullish on farm markets to the tune of $2.5 million
Clevelanders are having a love affair with locally grown, seasonal food -- and that romance is playing out at numerous farmers markets around town. These days, it's possible to shop at a different neighborhood farmers market practically every day of the week, a far cry from when just a handful existed. What's more: Cleveland-area farmers markets will reap approximately $2.5 million this year, great news for small entrepreneurs and the local economy.
city of cle makes good on promise to pimp food truck policy
As promised, Cleveland City Council passed sweeping new legislation that will help food truck operators succeed. Despite a lengthy -- and at times contentious -- process, City Council not only made good on its promises to modernize and streamline the rules of play, but actually improved upon the proposed package.

Mayor Frank Jackson was expected to sign the legislation this week.

According to Councilman Joe Cimperman, whose ward includes much of downtown, the new legislation would have limited food trucks to only a handful of downtown zones. What passed appears to be broader, with as many as eight permissible spots at which to circle the chuck wagons.

City Council also lengthened the permissible hours of operation, giving truck operators access to the lucrative post-bar business.

Before this revision, truck operators were required to obtain over a dozen separate permits, provide detailed external and internal architectural plans of their rig, fill out a 50-page application, and pay as much as $3,000 in application fees. The prize waiting for those who made it out of that process was confusing, contradictory and business-killing regulations.

This is great news not only for the existing and planned food trucks, but also for the City of Cleveland.

"[Food trucks] are successful micro-economic development engines that are creating independent wealth in one of the worst recessions in decades," says Lizzy Caston, a communications pro who consults with cities on modernizing food truck policy.

'build it big' program boosts women-owned firms

Cleveland is an entrepreneurial hotspot right now, and big business in Cleveland wants to make sure local women-owned outfits have equal footing. Springboard Enterprises has joined forces with Ohio-based powerhouses KeyBank, Thompson Hine, and Meaden & Moore to provide women with the keys to building big businesses.

Build it Big is a business development program for women-owned businesses on the fast track to growth. "It's about educating business owners on how to find equity investors and financing," says Maria Coyne, executive vice president of business banking for Key. "It's really about targeting for growth and the desire to grow rapidly."

Applications are being taken through May 23. The number of applicants accepted into the program depends on how many apply, but all applicants will get at least some input. To qualify, companies must have a woman in a key management position with a significant ownership stake; demonstrate a qualified and profitable market opportunity, a track record of milestone achievement and a credible core management team or an ability to attract one.

Companies selected to participate will meet one-on-one with the Build It Big partners to chart effective strategies for growing their businesses, including choosing the right capital, getting the fiscal house in order, and important legal issues such as product licensing, royalties and protecting the company's intellectual property.

The program can only mean good things for Cleveland's entrepreneurial spirit. "We think it's great for Cleveland because we like to grow our own," says Coyne. "We have an entrepreneurial history. Build it Big improves sustainability and growth for all our businesses. And we want to have a shared interest in their success."


Source: Maria Coyne
Writer: Karin Connelly

pittsburgh contemplates forthcoming ohio casinos
A recent Pittsburgh Post-Gazette article discusses the development of Horseshoe Casino Cleveland, which will be the first casino in Ohio when it opens early next year. The casino will be located in the historic Higbee Building downtown.

The development of casinos in Ohio will take a toll on already established casinos in Pennsylvania. About 20 percent of regular customers at Pittsburgh's Rivers Casino come are from out of state, mainly Ohio and West Virginia.

But before they can even open, Ohio casinos have a few hurdles to overcome, not the least of which is an ambivalent new Republican governor.

"The state's new governor, John Kasich, voted against the 2009 constitutional amendment referendum that was approved in a statewide vote, eventually permitting the construction of casinos in Cleveland, Toledo, Columbus and Cincinnati. But now he's charged with helping to craft the rules and regulations that will guide the industry in its formative years."

Kasich will also be the one who ultimately decides whether to sign off on a plan to legalize slot machines at Ohio racetracks. A portion of racetrack slot money goes toward prizes in Pennsylvania and Indiana, making race purses up to three times higher and in turn attracting better horses and jockeys.

Ohio is also in an unusual situation, because while casinos were approved in 2009, the Ohio Casino Control Commission, which handles many regulatory matters, was appointed just two months ago.

Check out the entire article here.

state farm offering sweet deal for bilingual agents
State Farm Insurance is looking for bi-lingual agents with an entrepreneurial spirit. So the agency is holding a job fair at Asian Town Center, located in Cleveland's Asiatown neighborhood, on May 17 from 5:30 p.m. to 7:30 p.m..

"State Farm has really got a push on the multi-cultural market," says Kevin Perry, senior State Farm field executive in the company's Beachwood office. "As a growing company we noticed we didn't have a lot of agents across diverse backgrounds."

Perry says Cleveland offers just the diversity State Farm is looking for. "We thought we'd go out and see what we can find and just go from there," he says. The company sponsored an event at Asia Town Center in January and "it went really well," so it seemed like the right location for a second one.

Ideally, State Farm would like to have an agent in Cleveland's Asiatown neighborhood. "With its location, we'd like to have an agent in there just to have a presence," Perry says. But the company is looking for agents who speak any language in addition to English.

"The right potential agent, with good credit, will be funded by State Farm for startup costs. Agents will receive an $18,000 signing bonus, an additional $12,000 after the first year, a $25,000 line of credit, and a credit card with a $5,000 limit.

"If you enjoy working with people, helping people, educating people, and you're interested in being an entrepreneur you should come in," says Perry. "We're looking for folks who want to be anchored in the community and looking to grow the market."


Source: Kevin Perry
Writer: Karen Connelly

csu and shaker launchhouse team up for 'idea competition'
Cleveland State University's Nance College of Business Administration and Shaker LaunchHouse have teamed up to encourage the regions entrepreneurs to follow their dreams.

The agreement was adopted at a special meeting of the Shaker City Council on March 14, after recommendation by the Shaker Heights Economic Development Department.

One of the first endeavors the two have launched is the 2011 Idea Competition. The contest is open to students at any Ohio college or university with an innovative business idea. Ideas should focus on software and Internet technology, low-tech medical devices, and clean energy.

"We really want to get the juices flowing of entrepreneurs in the region," says Shaker LaunchHouse managing partner Todd Goldstein. "We believe it's extremely important to provide an outlet for good ideas."

The winner gets a $2,500 scholarship to the Nance's global AMBA program and $1,000 from LaunchHouse, including incubation space, legal support, accounting support, and business planning assistance. The winner will have the chance to compete for $5,000 in seed funding.

Entry forms are due by noon on Monday, April 25. Finalists will then give a two-minute pitch to a panel of entrepreneurs and venture capitalists at Shaker LaunchHouse on Thursday, May 5. SLH will be offering educational seminars for the contestants to help them with their presentations.


Source: Todd Goldstein
Writer: Karin Connelly