Regional Economy

brownflynn set to relocate from suburbs to historic van sweringen offices in terminal tower
The historic Terminal Tower offices of the Van Sweringen brothers, the duo that built the iconic skyscraper and the streetcar suburb of Shaker Heights, will soon be occupied by a women-owned consulting firm that helps businesses and organizations embrace a more sustainable future.

BrownFlynn is relocating from Highland Heights to the tower's 36th floor. The firm, which provides sustainability consulting, communications and training, needs more space. The 7,000-square-foot office, boasting panoramic views of the city and located a few flights below the Observation Deck, will be completely renovated by the end of April.

"Clearly, we're committed to the city and want to be part of its vibrancy," says principal Margie Flynn. "We're committed to sustainability and want to make sure we're walking the talk in what we're doing. And the essence of sustainability is really historic preservation."

Flynn says her employees, many of whom live in the city, are very excited about being downtown. The office gives BrownFlynn room to grow, and the firm can welcome out-of-town guests via RTA's Red Line, which stops in Tower City.

"The space has a tremendous amount of natural light," Flynn comments. "We're going to adapt the space as a very open, collaborative work environment."

Vocon is helping to design the space, while Forest City, which owns the Terminal Tower and has been a major player in corporate sustainability nationwide, will facilitate renovations. Instead of reusing the massive corner offices as private suites, as the Vans once did, the principals plan to convert these spaces into open offices to encourage collaboration and stimulate creative thinking.

"The most important thing is to have a very open inviting environment for our team," says Flynn, adding that BrownFlynn could grow from 14 to 21 employees in the coming years to keep up with growing demand for its services.

BrownFlynn secured a job creation grant from the City of Cleveland to help facilitate the move.


Source: Margie Flynn
Writer: Lee Chilcote
cleveland ranks high in list of healthcare venture investments in latest report
Cleveland continues to gain momentum in leading the country and the Midwest in biomedical investments, according to BioEnterprise’s 2013 Midwest Healthcare Venture Investment Report. The report, released last month, shows that while overall investing is down nationwide, biomedical investments in health IT and medical devices in Northeast Ohio continue to be on the rise.

Ohio ranked number-one in healthcare venture investments. Cleveland earned the number-two regional ranking with $201.2 million invested in 50 companies, second only to Minneapolis. “It’s a very strong report, particularly for medical devices in the Midwest,” says Aram Nerpouni, president and CEO of BioEnterprise. “There is a strong pipeline of companies coming out of the Cleveland area.”
 
This is the second year the Cleveland area has seen $200 million in venture capital coming into the medical field, according to Nerpouni. But the ranking has taken years of effort. “As a region, it’s something we’ve been working toward for a decade now,” he says, crediting the area’s healthcare systems, universities and savvy entrepreneurs with the investment increase.
 
Ten years ago Cleveland’s leaders recognized the region’s assets in the biomedical field and have worked to create a reputation. But Nerpouni cautions we are only just beginning. “Look at it as a very good start,” he says. “We have to strike a balance of celebrating the progress but not getting too confident that it’s automatic.”
 
Nerpouni cites institutions like Cleveland Clinic Innovations, the Global Cardiovascular Innovation Center, and University Hospitals’ Harrington Discovery Institute, and now the Global Center for Health Innovation as just some of the contributors to the region’s growth in the biomedical field.
 
“Look at how much growth has happened, we’re just seeing this steady progress,” he says. “You begin to find there’s this flywheel gaining momentum.”

 
Source: Aram Nerpouni
Writer: Karin Connelly
cleveland metroparks zoo passes million-visitor mark for 21st year in a row
During the calendar year of 2013, 1,123,660 people enjoyed the Cleveland Metroparks Zoo, making it the 21st year in a row that the attraction passed the million-guest mark.
 
Heavy rains brought the total down from the previous year, which welcomed 1,170,443 guests.
 
2014 is shaping up to be another banner year thanks to the new Circle of Wildlife carousel ride and accompanying Nature Discovery Zone in the area known as Savanna Ridge. Both are slated for a late spring debut. The carousel will feature 64 hand-carved wildlife figures and two chariots in a three-season pavilion.
 
Read the rest of the good news here.

team neo attracted a record number of businesses to the region in 2013
Team NEO, the entity charged with marketing Northeast Ohio to the rest of the country and the world, brought a record 16 new businesses to the region in 2013, seven of which are in Cuyahoga County. The new companies add to the region almost 1,400 new jobs and more than $85 million in new annual payroll. The average salary in these companies is $62,000, which also is a record high. The majority of the companies are in manufacturing, healthcare and biomedical.  
 
“Obviously, we’re really happy about this,” says Tom Waltermire, Team NEO CEO. “The reasons the companies are here vary significantly, but they’re here because we have a whole bunch of resources available.” Three criteria attracted companies to Northeast Ohio, says Waltermire: close proximity to customers; low cost of doing business; and the ability to find and train the talent they need.
 
Team NEO has been promoting the 18-county Northeast Ohio region since 2007. In seven years, the organization has attracted 83 companies and 6,200 jobs to the area. The organization averaged nine to 12 new companies in each of its first five years. Last year, Team NEO brought 15 new companies to the area.
 
Waltermire attributes the rising interest in Northeast Ohio to increased awareness. “All of us as a community and a region are just getting better at this,” he says, adding that as consultants become more familiar with the region, they're more apt to promote it. “As we’ve been marketing the region for seven years, we’re becoming progressively better known.”
 
He also says both newcomers and lifelong residents have helped improve the region’s reputation. “Whether it’s a cocktail party or in a coffee shop, when you get that buzz going and get that informed ambassador effect going, then you’re really rolling.”
 
Of course, Team NEO alone does not take the credit for attracting the 16 companies. JobsOhio, the state and local communities all were involved in wooing new business to the region.

 
Source: Tom Waltermire
Writer: Karin Connelly
stories from the stove: cle's oldest restaurants have seen, been part of neighborhood change
We often don't give our old neighborhood restaurants a second thought, but they stand both as witnesses of and agents to change. As the world evolves all around them, they stand firm but flexible, preserving a delicious taste of the past while serving the ever-shifting needs of today's clientele.
growing under glass: from seed to harvest at green city growers
From a 3.25-acre hydroponic greenhouse in the Central neighborhood, Green City Growers Cooperative grows and sells a staggering three million heads of lettuce and another 300,000 pounds of herbs per year. All of those products are sold locally to grocery stores and food service companies within a 50-mile radius.
all aboard: urban transit stations redeveloped as neighborhood amenities
Even as the economy recovers, Americans are driving less and taking public transit more. With all that demand comes congestion and backups at major rail hubs. But smart cities are anticipating and adapting so that the transit station of tomorrow is a true neighborhood amenity.
tonight's techpint event could net one clever entrepreneur $5k
Tonight, January 23, FlashStarts will be hosting Global Pitcher Night at the January TechPint event at Mahall’s 20 Lanes in Lakewood. Don't come expecting free pitchers of beer; the night is about providing budding entrepreneurs with the opportunity to get up and pitch their business ideas for a chance to take home $5,000.

“We call it a karaoke-for-entrepreneurs concept,” says FlashStarts co-founder Charles Stack. “It’s an irreverent approach to a business competition. Pitchers will get a few minutes at the microphone, then the crowd will hoot and holler.”
 
Six pitchers will be selected to present a three-minute pitch, followed by two minutes of Q&A from the audience. A team of judges from FlashStarts and sponsor Arsenal Venture Partners will decide how the $5,000 will be awarded, either winner-take-all or by dividing it up among multiple winners. The audience also will get to provide input.
 
“It really is as informal a process as you will see, but we’re taking it seriously,” says Stack. “We’re trying to brew up new ideas.”
 
Interested pitchers should email 100-word pitches to techpint@flashstarts.com up until 4 p.m. today. Stack says they’ve already received more than a dozen applications. Doors open at 4:30 p.m., and the pitches begin at 5 p.m. Those who show up before 5:30 p.m. get an extra drink ticket.
 
Stack and Doug Hardman, founder of SparkBase, will speak after the pitch presentation, followed by an after party. Tickets are $15 and include a free pint of beer and some food.

 
Source: Charles Stack
Writer: Karin Connelly
cleveland gets noticed as green meetings and events locale
GreenBiz, a publication devoted to helping companies integrate environmental responsibility into their operations, included Cleveland in a recent listing of "Top 10 U.S. Cities for Green Meetings in 2014."
 
Thanks to the massive environmental footprint of air travel, audiovisual equipment, food waste and more, the meetings and event industry is one of the most wasteful sectors in the US.
 
But the news is not all bad, states the article. "A handful of destinations recently debuted new or renovated meetings facilities with an environmental focus, making the new year a particularly exciting one for green meetings."
 
"These 10 cities in particular stand out as top choices for sustainable events in 2014:"
 
10. Cleveland
 
"Last year, Cleveland welcomed two neighboring meeting venues along its revitalized waterfront: the Cleveland Convention Center and Global Center for Health Innovation, which hosts medical events. Both were designed with an eye on sustainability; features include 138 bike racks, water-efficient landscaping, motion sensors and low-flow washroom fixtures. The convention center has a green roof with extensive plant life and soil materials, while the Global Center includes a white reflective roof. Half of the nearly nine-acre site used for the buildings has been preserved as open space, and 97 percent of debris was recycled during construction. The venues are currently seeking LEED Silver certification."
 
"Sustainability is not just addressed in the design of these venues -- sustainability is the design of these venues," says Sarah Blanchard, spokesperson for LMN architects, which designed the facilities. "Displaying the future of health and health care and welcoming visitors from across the globe to a state-of-the-art convention center are civic hallmarks that demand a design centered on efficiency and technology."
 
Read the rest of the green news here.

dxy solutions expands mobile business, opens new offices, adds key employees
Dan Young, owner of DXY Solutions, has been a busy man. The mobile app developer has hired additional staff, opened West Coast and international offices and is expanding his company's breadth of capabilities. “We started off as a mobile company,” explains Young. “Mobile apps are very popular, but we’re looking to put mobile technology in the palm of the user’s hand. We’re looking at design and connectivity to the user’s environment.”

One area where DXY has thrived is in the medical field. For instance, the company designed an interactive iPad application for the Cleveland Clinic to better assess concussions. The app works with sensor devices to provide more accurate and comprehensive information than solely relying on human observation.
 
Young also is developing apps that interact with home automation devices and interactive android-based kiosks to help with way finding on large hospital campuses. “Users can walk up to the kiosk and they are directed where they need to go,” Young says. “We’ll be ready to deliver to clients this summer.”
 
To facilitate all these projects, DYX opened offices in Seattle and Berlin and brought on seven new employees, bringing the total to 23, 20 of whom are in DXY’s new Ohio City offices. Kate Hawk, who was brought on as marketing manager last summer, moved to Seattle to oversee business out west.
 
The Berlin office came out of a group of interactive designers Young employs there. “Berlin is the hot technology scene right now in Europe,” notes Young. “Last year was quite a bit of growth. It’s been stressful, but it’s been a fun ride.”
 
The coming year is shaping up to be just as exciting. DXY will launch an interactive web site for the Akron Public Schools in February, is launching this spring a new version of its virtual historical tour guide Curatescape, and will continue to grow its relationships in the medical community.

 
Source: Dan Young
Writer: Karin Connelly
embrace pet insurance forms new partnerships in banner year
Pet owners are beginning to realize the value of quality pet insurance, resulting in rapid growth for Embrace Pet Insurance. With that growth comes new hires, a change in investors and a partnership with a celebrity veterinarian.

While less than one percent of U.S. pet owners insure their pets -- compared to 25 percent in the UK -- founder Laura Bennett is working to change those numbers by going to vets and educating them about the benefits of insurance and encouraging them to recommend Embrace to their clients.
 
Embrace partnered with some comprehensive insurance companies last year. Most recently, Bennett signed on several large, well-known insurance companies to offer Embrace pet insurance to their clients.
 
To keep up with its growth, Embrace hired 17 employees last year. “I was like, holy moly,” says founder Laura Bennett. “And we have a number of positions open too. We’re now at 47 employees from 30. That’s growth of more than 50 percent.” Most of the hiring was in the claims, customer service and tech departments.
 
Amid all the hiring, Beauvest US, a private equity investor from Canada, bought out Embrace's venture investors. “Our prior investors had been in for over five years and were ready to move on per their investment guidelines,” says Bennett. “It’s good for Embrace in that our new investor is prepared to invest more money for us to grow and become more efficient. This person used to work in the insurance industry in Canada and sold his businesses. He understands our business.”
 
Earlier this month Embrace announced that the company has partnered with celebrity veterinarian, Dr. Marty Becker, known as “America’s Veterinarian,” to help spread the word about the importance of pet insurance. “He basically approached us,” Bennett says. “It builds awareness to our product in general and brings a lot of credibility to the Embrace brand.”
 
Later this year Embrace will move offices to accommodate its growth.

 
Source: Laura Bennett
Writer: Karin Connelly
botanical garden enjoys busiest year on record
In 2013, the 83-year-old Cleveland Botanical Garden attracted more people than ever to its University Circle properties. During the past 12 months, 188,669 people visited the Garden, marking a 17 percent increase over the prior year’s record attendance figure of 160,000. It marks the sixth straight year of attendance increases.
 
Garden President Natalie Ronayne attributes the growth to the success of two new seasonal events, Big Spring and the holiday spectacular Glow.
 
“It’s really great to see Northeast Ohioans embracing the Garden as relevant to their lives,” Ronayne says. “One of the most appealing things about the Garden is that it can be many different things to many different people -- a place of celebration, a place of solace, a place for making new family memories. I love that people are taking advantage of that.”
 
Next up on the schedule for the Garden is the 11th annual Orchid Mania, slated to run February 1 through March 9.

cleveland, the next brooklyn, says forbes
In a CNN Money feature titled "The Fortune Crystal Ball," the publication offers up its prognostications for the coming year, among them: Which cities will be the next Brooklyns, and which the next Detroits. Spoiler alert: Cleveland is pegged as a "Brooklyn."
 
"The American geography of prosperity has been driven by two big narratives in the past few years. On the one hand, there's Detroit, with its $18 billion in debt, pension mess, and population loss. On the other, there's Brooklyn, with its rocketing real estate prices, hip-luxe condos, and freshly foraged food stores," notes the money pub.
 
So, just what cities are deemed a "breakout town"?
 
New Brooklyns
 
Cleveland. The city is in the midst of a downtown revival that has seen not one, not two, but three Williamsburg-esque neighborhoods emerge: Tremont, Ohio City, and Gordon Square.
 
Odds of it becoming the "next Brooklyn" are placed at 63%.
 
Read the rest here.

downtown dialogues sparks talk on retail and amenities needed to grow downtown
The biggest gripe of downtown Cleveland residents (and, really, downtown dwellers in most non-coastal cities) is that their city center lacks the retail and amenities they need. Being a downtown resident often means regular car trips to the 'burbs -- or somewhere that's not within walking distance -- for shopping.

Yet that's slowly beginning to change. As any commercial broker will tell you, retail follows rooftops. As downtown Cleveland gains thousands of new residents, retailers are finding a market here. The 5th Street Arcades are nearly 100 percent full, and Heinen's is planning to open a new grocery store downtown.

The topic of retail and amenities will be in the spotlight this week as Downtown Cleveland Alliance (DCA) and the City Club of Cleveland kick off a new event series. "Civic Drinks: Downtown Dialogues" will bring together developers and nonprofit leaders to discuss what downtown Cleveland needs to thrive. The kickoff takes place on Wednesday, January 8th at 4 p.m. in the former Cleveland Trust Rotunda (future home of Heinen's Fine Foods) at East 9th and Euclid Ave.

The kickoff event will feature a panel discussion with DCA President and CEO Joe Marinucci, developer Fred Geis and Tom Heinen of Heinen's Fine Foods.

“Our Downtown Dialogue events are designed to give people who are invested in the future of downtown Cleveland an opportunity to discuss what’s next for our city," said Marinucci in a release. "Each talk will feature experts in a particular area that is crucial for moving downtown forward, and will offer opportunities for small group dialogue and sharing ideas.”

Future events will tackle green space and connectivity (April 4th), livability (July 2nd) and downtown's vision plan (September 3rd).


Source: Downtown Cleveland Alliance
Writer: Lee Chilcote
5th street arcades welcomes a windfall of new retail
As recently as last year, the Colonial and Euclid Arcades downtown suffered from 40 percent vacancy. But oh, how fortunes have changed. The once-moribund properties, rebranded as 5th Street Arcades, have gone from half-empty to almost full. Fresh Water photographer Bob Perkoski spent some time in the arcades window shopping with his camera.
writer offers solution to silicon valley tensions: cleveland
Tongue firmly in cheek, Slate writer Matthew Yglesias offers up a solution to the rising tensions between tech giants like Google and Apple and the rest of the residents in San Francisco: relocate the companies to Cleveland.
 
"The Bay Area is sick and tired of the antics of entitled techies, and the nouveaux riches want a place where they’ll be appreciated. It’s time for federal authorities to step in and move the show someplace else. Cleveland, say," he writes.
 
"Cities such as Buffalo, N.Y., or Pittsburgh come to mind, although unlike Detroit and Cleveland, they lack a major airport. Plans to save Detroit, however, are a bit cliché at this point, and I worry that any tech hub you tried to build there would naturally drift over to Ann Arbor, Mich., anyway. But Cleveland’s got plenty of affordable housing, plenty of available office space, flights to every important North American city, and even its own Federal Reserve bank."
 
Read the rest of the article here.

two cleveland eateries make top 15 list of 'most memorable restaurant meals'
Larry Olmsted, the weekly "Great American Bites" restaurant columnist for USA Today, eats out a lot, and his yearly Forbes list of standout restaurant meals from the past 12 months is filled with choice bites from around the globe. Two out of the 15 are meals in Cleveland spots.
 
"One reason these lists remain pertinent is because unlike most food publications, I don’t confuse 'new' with good, and just because I ate someplace this year for the first (or fifth) time doesn’t make the restaurant better or worse. What matters is simply how good the restaurant is," he writes.
 
Red, The Steakhouse
 
"Red succeeds at the high-end steakhouse game – where so many others fail -- by getting four key things right. 1. They make a great steak, using exclusively Certified Angus Beef that is mostly dry aged, and cooking it perfectly. 2. The appetizers are amazing, especially the Oysters Rockefeller and Red House Salad. 3. The classic steakhouse sides are perfected, like creamed corn and the only mac & cheese I have ever had that might actually be too rich, as the four cheese blend includes creamy Swiss raclette – and is offered with or without lobster. 4. The desserts are stunners and the Apple Pie Croissant bread pudding was OMG!"
 
Greenhouse Tavern
 
"Chef-owner Jonathon Sawyer is a hometown hero in Cleveland for his eateries, and if you visit his flagship Greenhouse Tavern it is easy to see why. He does many of the trends that are being embraced from Portland to Brooklyn, but he does them better: he makes an extensive array of his own vinegars, breaks down his own pigs and cows for snout to tail eating and completely embraces local farmers and ingredients. But while many pay lip service to these ideals he lives them, and the food shows. It is fun and wacky fine dining that puts twists on classics from around the world: his lunch menu includes a take on iconic Quebecois poutine called “gravy frites,” which covers a platter of fries with mozzarella curds, veal gravy and sometimes fried eggs. He has gotten a lot of press for his “Properly butchered rib steak,” cut in house of course, but the must-have signatures are the crispy chicken wings confit and roasted pig’s head served with little brioche buns to make your own pig’s head sliders.
 
Check out the entire list here.
what's the economic development potential of the opportunity corridor?
In this, the second installment in a two-part series, Fresh Water development editor Lee Chilcote takes a close look at the Opportunity Corridor, a 3.5 mile planned roadway that would connect I-490 with University Circle. The project is being promoted as an economic development engine, but skeptics have their doubts.