Regional Economy

regional planning initiative says status quo is not sustainable, wants residents to imagine future
The Northeast Ohio Sustainable Communities Consortium (NEOSCC) has mapped out what our region's future looks like if we stay on the same, urban-sprawl-lovin' course. Spoiler alert: It ain't good.

The group's "Business as Usual" scenario attempts to answer the question, "What will happen over the next 27 years if Northeast Ohio just keeps doing what it has been doing?" using sophisticated mapping.

NEOSCC's predictions include 2.4 percent growth in population and 6.2 percent growth in employment across 12 counties. Yet given our current land use patterns, about 92,500 acres will be used for new development and 77,100 acres will be abandoned.

That means Northeast Ohio is "on pace to abandon 10.5 percent of its housing units by 2040" or "18 units abandoned per day," according to the NEOSCC.

Although NEOSCC will not reveal its recommendations at this point, staff will present four scenarios to the public at open houses in the coming weeks.

These scenarios include "business as usual" (sprawl with limited growth), "doing things differently" (more sustainable development with limited growth), "grow the same" (sprawl with growth at a higher level than is occurring now) and "grow differently" (more sustainable development with greater growth). 

After receiving input from residents, NEOSCC will recommend a scenario to the four metropolitan planning organizations that help divvy up transportation dollars for the region and create long-term land use plans. Jeff Anderle of NEOSCC says that the group must create a "shared vision" to be successful with its efforts.

"We're not a governing organization; we don't have implementation power," he says. "It's been tricky, but we've gotten great participation from elected officials throughout the region. There's a lot of 'Let's see how and where this comes out.'"

To participate in the process, Northeast Ohio residents can attend one of the upcoming open houses or check out the Imagine My NEO tool on the website.


Source: Jeff Anderle
Writer: Lee Chilcote
move over silicon valley, here comes the rust belt
In a Forbes feature titled "The Surprising Rebirth Of America's Industrial Centers," Natalie Burg reports on the continued trend of former industrial cities transforming into today's hotbeds of entrepreneurial innovation.
 
"Move over, Silicon Valley. The American Rust Belt is going fiber optic. Though local economies built on manufacturing may not sound like the perfect candidates to transition into the new economy, cities like Cleveland, Detroit and Pittsburgh are proving otherwise."
 
Why would tech-minded entrepreneurs choose to live and work in Detroit, Pittsburgh or Cleveland instead of the sunny Silicon Valley?
 
“They want to see things being made,” the article contends. “These academically high achievers love making things.”
 
That's not all.
 
“There’s been an acceleration of restaurants, urban farms, are everything the tech industry require,” Russo said. “Chefs from other regions are relocating here.”
 
Read the rest of the news right here.

hemingway development and geis companies open third building of midtown tech park campus
Hemingway Development and Geis Companies have completed the third building of the MidTown Tech Park campus at 6555 Carnegie Avenue. The $9 million project brings the campus to a total of 242,000 square feet of new office space.

"When we arrived in MidTown, we wanted to develop one building a year, and we have exceeded that with the opening of this building,” said Fred Geis, a Hemingway principal, in a press release. "With the growth of the MidTown Tech Park campus, we have been able to create a real community where our tenants can interact and grow their businesses."

Radio One
, a national urban media company with four radio stations in Northeast Ohio, is one of the first new tenants. Regional Vice President Jeffrey Wilson says the developer's experience and the area's redevelopment attracted the firm.

"When I first looked at it, you might have thought I'd lost my mind, but we put our trust in Fred Geis," says Wilson of the building, which was raw prior to completion. "Now it's one of the most exciting spaces in all of Radio One."

The company will occupy 12,000 square feet on the first floor, including four main broadcast studios, production studios, a mix studio and a talk studio. Geis worked with Radio One to construct a 180-foot tower alongside the building, which will make it easier to transmit audio to the company's transmitter locations.

"To partake in the rebirth of the MidTown area really fulfills our creed," says Wilson. "We take a sense of pride in contributing to the rebirth of the area."

Talis Clinical, a Cleveland Clinic spinoff, is also leasing office space in the building. Geis says that the building will support 150 jobs and generate $300,000 in annual payroll taxes. The City of Cleveland provided $4.5 million in low-interest loans.


Source: Jeffrey Wilson, Fred Geis
Writer: Lee Chilcote
great lakes brewery helped transform ohio city
In a Massachusetts Republic feature titled "Craft breweries help transform 6 cities," writer Tali Arbel explores how craft breweries have helped to transform the neighborhoods around them.
 
"Small business owners tackled the hard work of transforming industrial buildings, many of which had sat empty as demographic changes pulled manufacturers and residents to the suburbs," she writes.
 
Here's a look at six breweries whose presence helped to change their surroundings:
 
"Great Lakes opened in Cleveland's Ohio City neighborhood in 1988. The downtown neighborhood was "perceived as dangerous and blighted" into the 1980s, says Eric Wobser. He works for Ohio City Inc., a nonprofit that promotes residential and commercial development while trying to preserve the neighborhood's older buildings."
 
"Great Lakes built a brewery and a brewpub. Other breweries and businesses -- a pasta maker, a bike shop, a tortilla factory, as well as restaurants and bars -- followed. Newcomers flock to the neighborhood, even though Cleveland's overall population is still declining. The city repaved the quiet street next to the brewery, Market Ave., with cobblestones, and poured millions into renovating a nearby 19th-century market."
 
Read the rest here.

workadvance exceeds enrollment goal for employment training program
WorkAdvance, a national program that provides low-income and low-skilled individuals with employment training, in conjunction with Towards Employment, a Cuyahoga County-based employment readiness agency, and seven other collaborators, has enrolled 465 local participants in its training program.

Enrollment began in June. The participants are receiving skills training and career services in manufacturing and healthcare. Rebecca Kusner, director of WorkAdvance, says two-thirds of the Cuyahoga County participants are from Cleveland.
 
The WorkAdvance program is part of a study to show that low-skill and low-income people with barriers to employment can meet companies’ needs if they are offered coordinated skills training and career coaching. “Often, people get GED services, but not technical training,” says Kusner. “WorkAdvance puts together all the services people need to not only get a job, but continue along a career pathway so they don’t end up back on public assistance.”
 
Northeast Ohio is one of four sites nationwide in the study. The program operates through federal funding from the Social Innovation Fund and under a local investment from the Fund for Our Economic Future.
 
Manufacturing and health care are two areas most in need of trained workers, Kusner says. “We talked to employers in both fields and asked them where they feel the pain,” she explains, adding that qualified welders were particularly in demand in Northeast Ohio.
 
Participants received training at places like Tri-C, Lincoln Electric, and Lakeland Community College. Kusner reports that 30 percent of those participants in jobs after training have already received wage increases.
 

Source: Rebecca Kusner
Writer: Karin Connelly
great lakes, ohio city highlighted in usa today feature
In a USA Today article titled "Build a craft brewery, urban revival will come," writer Tali Arbel describes the positive effects that craft breweries often have on their surrounding neighborhoods. In the piece, Great Lakes Brewing and its host Ohio City are given robust attention.
 
"The arrival of a craft brewery was also often one of the first signs that a neighborhood was changing. From New England to the West Coast, new businesses bubbled up around breweries, drawing young people and creating a vibrant community where families could plant roots and small businesses could thrive. It happened in Cleveland."
 
Great Lakes Brewing, which opened in 1988, built a brewery and a brewpub from historic structures.
 
"Other breweries and businesses -- a pasta maker, a bike shop, a tortilla factory, as well as restaurants and bars -- followed. Newcomers are flocking to the neighborhood, even though Cleveland's overall population is still declining. The city repaved the quiet street next to the brewery, Market Ave., with cobblestones, and poured millions into renovating the West Side Market, whose origins date back to the 19th century. Today, more than 100 vendors sell produce, meat, cheese and other foods there."
 
Read the rest of the article here.

ride along with fresh fork market, a farm-to-table slideshow
Each week, Fresh Fork Market delivers "grab bags" of locally grown ingredients to thousands of subscribers at various drop-off sites around town. From the customer's point of view, the process is a breeze. But ride along with owner Trevor Clatterbuck, as photographer Bob Perkoski did for this slideshow, and you'll see how much work goes into each bag.
columbus news crew road trips to cleveland
In an ABC 6 report titled “Road Trippin #3: Cleveland,” Columbus reporter Ashley Yore headed north on I-71 to Cleveland to explore our city’s $2 billion worth of new tourism related developments and improvements.
 
“According to Cleveland representatives, most of the improvements are on the East 4th Street, one of the city’s entertainment districts. Some of the projects include a new casino, a museum of contemporary art and a new aquarium. In addition, The National Senior Games are coming to the city on July 19, as well as “The Rolling Stone: 50 years of Satisfaction,” an interactive exhibit at the Rock and Roll Hall of Fame.”
 
Other stops along the route included Melt Bar and Grilled, The Western Reserve Historical Society, and the Great Lakes Science Center.
 
The full story and a video broadcast of the report are available here.

pipe dreams: will ohio be the next state to legalize medical marijuana
With medical marijuana becoming more mainstream every year, backers who favor legalizing it say the moment is ripe for Ohio to join the movement. To that aim, one group is collecting signatures to place the issue on the November 2014 ballot, allowing voters to decide whether or not medical marijuana should be allowed.
bluebridge networks announces $6m tech investment, plans to double staff
BlueBridge Networks isn’t trying to be the biggest cloud-based data storage and recovery company; the Cleveland-based company simply wants to be the best for its customers. To ensure that it is, BlueBridge recently announced a $6 million investment in technology to build the best network and facilities possible.

“We are controlling our own destiny,” explains managing director and partner Kevin Goodman. “We’re building our network to be cheaper, better and faster. Over time, the $6 million will be about time, talent and treasure.”
 
The three key players at BlueBridge -- Goodman, CFO Phillip Weihe, and director of operations Petar Bojovic -- sat down and made a plan for strategic growth that includes hardware and software improvements, updates to facilities and hiring the right people to make it all happen.
 
“The three of us strategically put together what we have to do to build it better,” says Goodman. “It’s a terrific time for us. Our focus has always been the next step. We always look at operational excellence, but we’re also always poised for growth.”
 
Pat Garcia, associate partner of technology at Rosetta, one of BlueBridge’s long-term customers, backs up Goodman’s mission to be the best provider to its customers. “We’ve really had a good experience with their response time,” Garcia says. “They are service oriented and all about customers and getting things done right.”
 
In addition to its Cleveland headquarters, Bluebridge has data centers in Mayfield Heights, Columbus and, more recently, Grand Rapids, Michigan. Goodman says the centers are all located on the line of the technology telecom track and centrally located. The bulk of the investment will be in the Cleveland headquarters, Goodman says, where the majority of the cloud platform is located. The new and improved platform is called bCloud2.0.
 
BlueBridge currently has 14 employees and 30 contractors. Goodman says they plan to bring on 15 additional people this year, and already are hiring people from all over the country.

 
Source: Kevin Goodman
Writer: Karin Connelly
writer proposes dream rapid system for region
In a RustWire post titled “Imagining a Dream Rapid for Cleveland,” Christopher Lohr explores the impact that expanding the rapid transit system would have on the greater Cleveland metropolitan area.
 
Lohr was inspired by a pair of articles that related to the Baltimore and NYC systems in a somewhat playful fashion.  He opted for a more serious approach when creating the “Dream Rapid” for Cleveland that would both serve the community and allow for continued economic growth.
 
“These articles inspired me to create what I called the Dream Rapid. Rather than base it on existing Subway routes or plans from decades ago, I instead set out to base in on plausible rail and interstate corridors that could accommodate transit.”
 
The article goes on to detail the various routes and communities served by this dream expansion.
 
View the full piece here.

knowta exceeds goal for follow-on funding, will improve and expand
Knowta recently raised more than $300,000 in angel investments, exceeding its goal of $250,000 to roll out the next phase of its software solution. The LaunchHouse company offers free or discounted printing at libraries in exchange for accepting advertising on the bottom of the printed pages. A percentage of the revenue generated from the full-color ads is then returned to the libraries to offset their costs.
 
Initially, founder Ryan Clark and his four partners tested Knowta’s usability at CWRU’s Kelvin Smith Library during the 2012-2013 school year. They looked at three factors: Would library patrons use the service; would it work well in the university environment and provide value to the university; and would it deliver desirable results to advertisers. “We got an affirmative response on all three,” says Clark.
 
The next step is to improve upon the software. Clark says the investments, 90 percent of which came from individual Northeast Ohio investors, will be used to roll out the next phase. “There are a number of features we want to add to make it more attractive to our advertisers and make it more robust,” he says. “We’re excited about it. We’ve received tremendous feedback from users at Case.”
 
Knowta currently is in talks with five other universities in Northeast Ohio, and Clark says they are open to talking to any school that is interested in their product. Their goal is to secure five to six new schools this year.
 
Knowta currently has 25 advertisers in a range of industries, most of them local. Clark’s goal is to tap into the national market. The most popular ads are for the food and beverage industry.
 
Knowta has two full time employees, one paid intern and uses four to five contractors to build out the second phase of software development. The company plans to hire a lead developer/solution architect by the end of the year.

 
Source: Ryan Clark
Writer: Karin Connelly
endowment fund to boost midtown group's good works
The two square miles of real estate between downtown Cleveland and University Circle are bursting with development. A local nonprofit has established a fund to ensure that work continues to flourish.

On June 20, economic development corporation MidTown Cleveland, Inc. announced the creation of the MidTown Cleveland, Inc. Endowment Fund at the Cleveland Foundation. The fund, under the foundation's guidance, proposes to build a sustainable revenue source to secure continued activity in the burgeoning district. This will include promotion of the health-tech corridor, a three-mile expanse of hospitals, business incubators, educational institutions and high-tech companies situated within MidTown.

The growing tech corridor isn't the only project the fund will support, notes MidTown chairman John Melchiorre. The group plans to leave other "footprints" on the community as well, be they demolishing old buildings, planting flowers along Euclid Avenue or helping transform distressed properties into job-creating enterprises.

"The Cleveland Foundation has been a leading supporter of the revitalization of Midtown, so this is just the latest way our two organizations have joined forces for the betterment of that neighborhood," said Kaye Ridolfi, senior vice president of advancement at the Cleveland Foundation.

Founded by Cleveland businessman Mort Mandel and others some 30 years ago, MidTown Cleveland has helped develop the area into a business district home to 600 companies and 18,000 employees. Executive director Jim Haviland views MidTown as part of the city's renaissance, and believes the fund will sustain the region for decades to come.

"It helps us to continue the role we play" within the neighborhood, says Haviland.

 
SOURCES: John Melchiorre, Jim Haviland, Kaye Ridolfi
WRITER: Douglas J. Guth
pgh praises cle healthline, wants one of its own
In a Pittsburgh Post-Gazette story titled “Cleveland’s HealthLine bus route could be a model for Pittsburgh,” writer Jon Schmitz praises Cleveland for its dedicated route that connects downtown with the Cleveland Clinic.
 
The new line transformed a 46-minute trip along the nine-mile corridor into a route with its own reserved lanes, and through traffic lights that are programmed to give the busses priority. Fares are paid via vending machines at the 40 stops along the route. 
 
“The $197 million project literally remade Euclid Avenue, replacing ancient underground infrastructure and crumbling sidewalks, reconstructing the road surface, adding station kiosks and landscaping medians between the stops.”
 
Schmitz goes on to detail other aspects that make the line a benefit to both riders and the surrounding community.

Enjoy the full piece here.

eaton corp praised for green building
In a GreenBiz story titled “Megatrends: The power behind Eaton’s global green growth,” writer Anna Clark explores Cleveland’s history as a major manufacturing center since the time of John D. Rockefeller and its subsequent decline. 
 
But one of the city’s largest companies, Eaton Corp., is a proponent for efficiency, reliability, safety, and sustainability that is leading to a potential “green renaissance” in the Rust Belt.
 
The company has built a larger campus to focus on more growth locally.  Their commitment to green initiatives was a primary focus during the initial build.
 
“Consistent with Eaton's commitment to sustainability, the new building was designed to consume 40 percent less energy and 40 percent less water than a conventional building of smaller scale. The rainwater reuse system is expected to significantly cut water consumption, and a high-efficiency glass-curtain wall system maximizes the use of daylight while optimizing thermal comfort within interior spaces. Eaton Center eventually will accommodate more than 1,000 of the 1,800 Cleveland-area employees, and is expected to earn its LEED certification within the next few months.”
 
Enjoy the full story here.
 
writer discovers cleveland is nothing like stereotypes
In a Post-Searchlight story titled “Cleveland -- from gritty to gleaming,” Dan Ponder shares his pleasant surprise upon discovering that Cleveland is far from the dark and dismal stereotype so prevalent among the uninformed.
 
Ponder writes how he came to the city on a dreary and rainy day, which only served to reinforce his opinion of what our city is like. But once he arrived downtown from his drive from the airport, those opinions quickly changed.
 
“From that point on, everything we saw and did was a pleasant surprise," he writes. "Cleveland, once the fifth largest city in the United States, is now the 45th largest city. However, they have literally transformed their downtown area into a bustling area full of public parks. It was clean and felt safe. There were interesting restaurants everywhere and downtown seemed alive -- full of people living in converted loft apartments.”
 
Ponder goes on to talk about the various sports stadiums, the new convention center, and many other attractions that make Cleveland special.
 
Read the full article here.

bizdom and launchhouse team up accelerator programs for region's gain
Both Bizdom and LaunchHouse received hundreds of entrepreneurs applying for their respective accelerator programs this year. LaunchHouse received a record 115 applications for 10 spots in its 2013 LHX accelerator program, while Bizdom already has seen more than 100 applications this year from all over the country.

Both organizations each received $200,000 from Ohio’s New Entrepreneurs (ONE) Fund earlier this year. So, Bizdom and LaunchHouse decided to collaborate in investing in 20 technology startups this year.
 
"We feel it is important to collaborate with every organization that is helping to revitalize the region and LaunchHouse is certainly one of these organizations,” says Bizdom leader Paul Allen. “When we found out that Shaker LaunchHouse had also received ONE Fund support for its accelerator we reached out to see how we could closely collaborate to optimize the experience for all founders and to show the startup community that we are coordinated in our efforts.”
 
The organizations plan to share mentoring sessions, jointly host classes and open up their office spaces to each other’s entrepreneurs. “We have a strong network, and so does Bizdom,” says LaunchHouse CEO Todd Goldstein. “So why not collaborate to build a successful business community in Northeast Ohio?”
 
The whole idea is to foster the growth of Northeast Ohio as a hotbed for startups and a place that supports entrepreneurs. “Really, we are about the accelerator and the entrepreneurs working together to build a great community,” says Goldstein. “We’re not on an island by ourselves. We’re all out to build successful entrepreneurs in Northeast Ohio.”
 
Allen agrees that the collaboration will help the entrepreneurs as well as continue to attract startups from outside the region. “Participants will be able to socialize with a greater number of peers and hopefully they will be able to learn from one another,” he says. “Collaboration strengthens the Northeast Ohio entrepreneurial community because it gives us an opportunity to articulate a consistent and more powerful message within and outside the region about the opportunities and resources that exist here."

 
Sources: Paul Allen, Todd Goldstein
Writer: Karin Connelly
crowdentials takes the legwork out of equity crowdfunding compliance
As an entrepreneurship/business management senior at Ohio University, and the president of the school’s Entrepreneurship Club, Richard Rodman has started two successful companies during his studies. Most recently, he noticed the need for some guidance in the crowdfunding trend.

So Rodman first started 530Funds in November 2012, a search engine and news site for the crowdfunding industry. “It was really hard to sift through Google to find the right platform,” he says.

But Rodman quickly realized the real need was in helping users navigate the forthcoming SEC regulations on equity crowdfunding and make sure they are compliant while raising money for their cause. Individuals, investors and crowdfunding platforms must comply with these regulations.
 
That’s when Rodman came up with Crowdentials. “Crowdentials is regulatory software for the rules SEC has created,” he explains. “It’s a simple web form -- kind of like TurboTax -- where you can cross-reference to see if you comply.”
 
Crowdentials helps take the legwork out of fundraising. Through the site and one form, investors, businesses and crowdfunding platforms ensure they are in compliance while raising money or investing in a new company. “We take care of compliance; you take care of business,” says Rodman says. “Businesses shouldn’t have to waste their time researching all the regulations.”
 
Crowdentials was accepted into the inaugural FlashStarts program, run by Charles Stack and Jennifer Neundorfer, this summer. Rodman says there was an “instant connection” in the interview process. “I think it’s going to do a lot,” he says of the program, adding that he enjoys working with the mentors and interns on hand and bouncing ideas off the other entrepreneurial teams.
 
Rodman has two partners.

 
Source: Richard Rodman
Writer: Karin Connelly
fifth third to roll mobile bank into underserved communities
Fifth Third Bank wants Northeast Ohioans who might be anxious about walking into a financial institution to get on the bus.

The bank has partnered with local community organizations to bring the Financial Empowerment Mobile, or eBus, to nine locations in the region from June 19 to June 29. The eBus is a rolling classroom providing credit counseling, financial literacy, home ownership assistance, and access to banking services directly to where people live, says Rob Soroka, retail executive at Fifth Third.

"People coming on the bus are struggling with their finances," says Soroka. "This is a place where they can get unbiased advice and direction to improve their financial life."

The mobile classroom is equipped with computer terminals for instructor-led or self-directed home ownership and credit counseling programs. Fifth Third community development officers, mortgage professionals and retail banking staff will be riding along to offer financial advice in a relaxed atmosphere.

Now in its ninth year, the theme of this year's program is realizing financial dreams, be it owning a house or starting a business, says Laura Passerallo, Fifth Third director of marketing. The eBus venture, which counts the Call & Post Foundation and The Word Church among its partners, will serve upwards of 1,600 people this summer.

Fifth Third will also hold large community events to introduce people to the eBus. A June 28 get-together at the Hispanic Business Center aims to provide a festive atmosphere for folks curious about what the 40-foot-long bank-on-wheels provides.

"People who need help may be intimated to come into a traditional financial center," says Soroka. "With the eBus, that intimidation goes away. That does some good for the community."

 
SOURCES: Rob Soroka, Laura Passerallo
WRITER: Douglas J. Guth
zuga medical receives fda approval, jumpstart investment for dental implant system
Zuga Medical, a medical device company, recently received a $250,000 investment from JumpStart to launch its dental implant system. In April Zuga received FDA approval for its system, which allows a general dentist to perform implants using a screw, a procedure previously done only by oral surgeons.
 
“Our patent-pending technology makes it simpler, easier and more cost-effective for both the dentist and the patient,” says Zuga CEO Steve Cornelius, who met the company’s founder and CSO, Chan Wang, a year-and-a-half ago through BioEnterprise and joined the board of directors. He then became CEO. With 15 years of experience in the dental industry, Cornelius was intrigued with Wang’s product. “Chan had a vision of making things simple for general dentistry.”
 
Zuga will use the JumpStart investment to conduct a soft launch with eight to nine local dentists. Those dentists will take a training course on placing the implants next month. “We’re using the local soft launch in Cleveland to prove out our business model and raise the next round of investments,” Cornelius says. “Our vision is to create a dental company right here in Cleveland.”
 
As Zuga grows, Cornelius hopes to hire three to four sales reps, a marketing person and a customer service rep by the end of the year.
 
Zuga Medical has also received investments from the Cuyahoga County North Coast Opportunities Fund and the Innovation Fund.

 
Source: Steve Cornelius
Writer: Karin Connelly