Regional Economy

new online publication to explore rust belt culture and economic development
Building on the success of the book “Rust Belt Chic: The Cleveland Anthology,” a collection of essays and images about Cleveland edited by Anne Trubek and Richey Piiparinen, and subsequent blog, the publishers announced that they will launch an online magazine, Belt, this coming September.

“There was so much interest in 'Rust Belt Chic' that we really wanted to continue to have a space for people to contribute,” says Belt editor-in-chief Trubek. “We wanted to have an outlet that could provide long form pieces as well as criticism and commentary about things around town.”
 
Trubek describes the magazine as having a cultural and urbanism focus that will appeal to both Clevelanders and readers in other Rust Belt cities like Detroit, Pittsburgh and Buffalo. “We realize something is happening in the Rust Belt,” says Trubek. “It’s becoming sort of an interesting place nationally.”
 
The content of Belt will cover many interest areas. “It cuts across different demographics in Cleveland,” adds Trubek. “Our readership is a mix of young people living in the city with a DIY attitude and ex-pats around the country looking for good, meaty writing about Cleveland, but also people interested in the history of Cleveland and how history is important in terms of where we’ve been and what we are doing.”
 
Right now Trubek is looking for financial investors. Belt just launched a Kickstarter campaign to get the magazine off the ground.

 
Source: Anne Trubek
Writer: Karin Connelly
sugar plum cake wins competition, looking for permanent home
Jewels Johnson dabbled in a few different career paths before she found her true calling: baked goods. She grew up in Shaker Heights, went off to London, Charlotte, Las Vegas and Chicago before returning to Shaker in 2006 to work as a teacher at Shaker Heights High School.
 
Then, in 2011, armed with her grandmother’s recipe box, Johnson opened Sugar Plum Cake Company. “I’m a self-taught baker; my grandmother taught my mom and my mom taught me,” she says. “My inheritance was a 1937 KitchenAid mixer, the oldest known certified one that still works.”
 
Sugar Plum specializes in custom made cakes, cupcakes and other goodies. Everything is custom made to order. Johnson’s baked goods are so popular she quit her teaching job this year to concentrate on Sugar Plum full-time.
 
“For me, baking was really something to do during the summer,” Johnson says. “But it allowed me to quit my job two years later.” The business has taken off, and customers usually have to order at least a week in advance. Sugar Plum has 600 clients, with more than 400 being repeat customers. Johnson reports that sales have increased by at least 50 percent per quarter.
 
Earlier this month, Sugar Plum Cake Company was named the grand prize winner of the Spring 2013 Bad Girl Ventures Business Plan Competition. Johnson received a $25,000 loan to grow her business.
 
Johnson recently teamed up with Fresh Fork Market to develop a line of baking mixes using locally sourced flour and natural sweeteners, called Devour! Gourmet Baking Mixes. The line features a variety of cake, brownie, pancake and bread mixes. The line is available through Fresh Fork Market and Sugar Plum. Johnson is working with some additional retail sites to carry the Devour! line.
 
Johnson in the in the process of looking for a permanent location, where she intends to offer pop-up space for local artists while selling her cakes. She employs seasonal workers during peak times to help with deliveries and plans to hire three permanent employees this year to help with the Devour! production.

 
Source: Jewels Johnson
Writer: Karin Connelly
salon features slavic village in housing bubble feature
In a Salon story titled “Cleveland: Ground zero for the housing bubble,” Edward McClelland shares a compelling tale of how the housing collapse hit Cleveland’s Slavic Village neighborhood with a first-hand account from a lifelong resident.
 
“If houses go to heaven, then Classen Avenue, in the Cleveland neighborhood of Slavic Village, has been the scene of a mass Rapture. Ted Michols watched it all happen. A retired trade magazine editor, a bachelor, a man who likes to sit on his porch and share the neighborhood with passersby he’s known fifty years, Michols has lived his entire life in a little square house his grandfather bought in 1923.”
 
McClelland writes of Michols experience from the very beginning of the end up to modern day troubles and turmoil in his lengthy feature.
 
Read the complete piece here.

explorys lands fourth largest catholic healthcare company, expects to add 20 percent more staff
Last month Trinity Health, the fourth largest Catholic healthcare system in the country, hired Explorys to manage its healthcare data analytics in its hospitals, outpatient facilities and other facilities. Trinity will implement Explorys’ suite of cloud-based big data analytics solutions to manage the company’s clinical data.

The deal puts Explorys, which already is a leader in big data, on top in the clinical data market. Explorys has been rapidly growing since its inception nearly four years ago, and continues to grow. “We’re excited about Trinity,” says Charlie Lougheed, Explorys president and chief strategy officer. “We’ve seen a lot of growth in the past year alone, as well as the last three and a half years. The whole healthcare industry is in the midst of this transformation and big data is in the middle of that.”
 
Explorys’ big data solutions allow hospitals to better manage their data and therefore improve patient care. Trinity is the latest addition to more than a dozen healthcare companies that use Explorys’ solutions. “Trinity recognized they needed to select a platform that is going to expand into the future rather than solve a problem right now,” explains Lougheed. “They were looking for a platform that would grow and develop within their network, and Explorys met that need for them.”
 
Explorys continues to grow in its Cleveland offices. The company has close to 100 employees right now and has new-employee orientations every other month. “We plan to continue to hire people over time,” says Lougheed. “By the end of the year I expect, conservatively, to be at 120 people.”

 
Source: Charlie Lougheed
Writer: Karin Connelly
evergreen coop praised in new york times
In a New York Times post titled “The Cure and Feeding of Small Business,” writer and economics professor at UMass explains that while big business is still able to garner generous grants and tax incentives by promising jobs within political boundaries, it often comes at a price to small business and other civic services.
 
Once such model that is working well to foster success for the smaller enterprise as well as create jobs for the community is the worker-owned cooperative, like those at Evergreen Cooperatives in Cleveland.
 
“Promotion of worker-owned cooperatives is a way to create entrepreneurs and jobs at the same time. The Evergreen Cooperatives of Cleveland represent a stellar example, recently called out by the Federal Reserve Board member Sarah Bloom Raskin as an effective model of local economic development.”
 
Check out the full story here.

black achievement the topic of foundation center's first 'rising tide' event
When every sector of a populace thrives, so does the community as a whole. The local chapter of a national philanthropic organization plans to shine a light on this and other issues during a series of programs in 2013.

Philanthropic support of black male achievement will be the subject of the Foundation Center's first Rising Tide program on May 22, says director Cindy Bailie. Nearly every major indicator of economic, social and physical well-being shows that black men and boys in the U.S. do not have access to the structural foundation and opportunities needed to succeed. However, a flood of philanthropic support and social innovation is addressing these challenges head on.

"There's work happening locally aimed at black men of all ages," says Bailie. "This is our chance to change the situation."

The program will consist of three speakers and a panel discussion. The center has also launched a website to spotlight the topic. Connecting people to those working on the problem is only part of the plan.

"We want people to leave inspired," says Bailie. "This is a call to action."

The New York-headquartered Foundation Center is a source of information on U.S. grantmakers. Locally, the organization acts as a library/learning center for those seeking knowledge about the nonprofit sector.

The black achievement program is the first of a planned series of quarterly events "showcasing new ways of solving old problems," says Bailie. Future events could touch on such topics as the impact of arts and culture on the community.

"These [programs] aren't just conversation-starters," Bailie says. "What will you do to keep the conversation going?"

 
SOURCE: Cindy Bailie
WRITER: Douglas J. Guth
organization's eclectic mix of programs 'scoring' points with cleveland students
Soccer, creative writing and volunteerism might seem like an odd mix, just don't tell that to the students helped by America SCORES Cleveland, an organization that has been providing unique after-school programming for almost 10 years.

The local chapter of America SCORES, which launched in 2004, serves more than 500 youths in 10 Cleveland public schools. The program is designed to create "poet-athletes" through an innovative triple threat of soccer, poetry and service learning, says executive director Debi Pence-Meyenberg.
 
The tri-curricular approach creates well-rounded students, maintains Pence-Meyenberg. Soccer was chosen for its accessibility and minimal equipment needs. Writing and performing poetry, meanwhile, gives youths an emotional outlet and promotes creative thinking. Finally, volunteerism instills in children a sense of compassion, social responsibility and personal worth.

"We want urban youth to lead healthy lives and be involved in their community," says Pence-Meyenberg.

Public school students in grades three through eight can stay engaged through sports and creative writing, notes the chapter head. Participants also choose their own neighborhood-based service projects, like working at a community garden or raising money for Haitian earthquake victims.

On June 22, Cleveland's student-poets will collaborate with Cleveland artists during an event at 78th Street Studios. The Inspired Art Project will showcase the poetry of local youths through original artwork from Cleveland creatives, with sales of these items going to America SCORES. The program, along with the other activities America SCORES offers, can have a positive impact on the culture of an entire school district.

"Our kids and becoming healthier and more engaged," Pence-Meyenberg says.

 
SOURCE: Debi Pence-Meyenberg
WRITER: Douglas J. Guth
ndi medical continues to grow rapidly in neuro-stim field
When Geoff Thorpe founded NDI Medical in 2002 with his neurostimulation device for bladder control, he saw a market with a lot of potential. The company sold its MEDSTIM device to Medtronic in 2008, kept the NDI name and branched into developing and commercializing new neurostimulation device companies.
 
The move has proved successful. NDI has launched two companies and has grown to 32 employees, 21 of whom work in NDI’s Cleveland headquarters. The company also has offices in North Carolina and Minnesota. Most recently, NDI Medical named Marilyn Eisele as president of the company. She has been with NDI about a year, previously serving as vice president of finance and CFO.
 
“What attracted me to the company was the innovation coming out of the collective enterprise,” Eisele says. “We took a step back after we sold the company in 2008 and decided to reinvent and continue the business as a development company where we develop new therapies.”
 
Since selling the company and regrouping as a developer of new technologies, NDI Medical has raised $17 million in private equity and another $9 million in grants and loans. In 2010, the company launched Checkpoint Surgical, which makes a device that allows surgeons to locate nerves and muscles before making an incision, and SPR Therapeutics, which develops nerve stimulation devices for pain management. Sales have doubled each year since Checkpoint was launched.
 
“In some ways we are a development company, and in some ways we’re an incubator company,” says Eisele. “We’re able to develop medical devices so each portfolio company doesn’t need its own team of engineers. It’s a very cost-effective way to use research.”
 
NDI Medical is in the process of launching a third company in the next few months.

 
Source: Marilyn Eisele
Writer: Karin Connelly
nbc sports covers nfl-related film in town
In an NBC Sports story titled “Draft Day descends on Cleveland this week,” Mike Florio shares that filming is ready to get underway on the NFL-related movie Draft Day starring Kevin Costner and Jennifer Garner, with the storyline centered on the Cleveland Browns.
 
“The bulk of the filming starts in and around Greater Cleveland on [May 8]. Shaker Heights and Berea, where the Browns are headquartered, appear on the list of sites where scenes will be shot. FirstEnergy Stadium will host some of the filming, too.”
 
Draft Day is not the only filming ready to get underway as Captain America: The Winter Soldier will soon begin production here as well.
 
View the entire blurb here.

area minority entrepreneurs inducted into charter one launch100 leadership circle
Nine young Northeast Ohio businesses were inducted into the Charter One Launch100 Leadership Circle on April 25. Local inductees included Nicole Zmij, CEO of Amplified Wind Solutions in Cleveland, Lindsay Sims, founder and CEO of Renter’s BOOM, Lissette Rivera, founder of SafeCare, all in Cleveland, and Shaquita Graham, CEO of King J Transportation in South Euclid.

“The Launch100 Leadership Circle really focuses on minority entrepreneurs and encourages them to take the risk of starting a new venture, particularly those who have the revenue potential of $10 million,” says Ken Marblestone, president of Charter One and RBS Citizens bank. “The Leadership Circle honors leaders within the Launch 100 group and works to inspire them to take risks and network with each other, and make sure they are recognized for their ideas and entrepreneurism.”
 
Founded in 2012, the Launch100 offers a peer networking opportunity for minority and women business owners with high growth potential.  “We’re focused on how to help these expanding businesses succeed,” says Marblestone. “We recognize them with an award and then offer conversation about the hurdles they’re facing. That whole dialog leaves the entrepreneurs full of motivation and ideas, and ready to tackle another hurdle.”
 
The induction ceremony was held at JumpStart’s offices. Other regional companies inducted included Body Phyx, Design Flux Technologies, On Demand Interpretation Services, OrthoData and Wahconah Group.

 
Source: Ken Marblestone
Writer: Karin Connelly
shaker heights renovates two blighted homes near launchhouse to create 'tech village'
Building off the buzz created by Shaker LaunchHouse, an entrepreneurial incubator, the City of Shaker Heights has partnered with LaunchHouse, Cuyahoga County and Neighborhood Housing Services of Greater Cleveland to renovate two homes on Chelton Road into affordable housing for entrepreneurs.

The homes at 3553 and 3599 Chelton Road, directly behind Shaker Launchhouse in the South Moreland neighborhood, were vacant before the city acquired them. Shaker renovated the homes using $250,000 of Neighborhood Stabilization Funds, and is now in the process of transferring the properties to Neighborhood Housing Services. The agency, which specializes in affordable housing, will own and manage them.

The houses feature a total of nine "units" (a bedroom in a shared house with ample common space) that can be rented for $395 apiece. Amenities include high-speed Internet, free utilities, a comfortable green home with air conditioning, hardwood floors, free laundry and a ceiling projector hook-up in the living room for presentations. The homes are part of a multi-million dollar investment the city has made in the South Moreland community.

"We already have more applicants than we have units," reports Kamla Lewis, Director of Neighborhood Revitalization with the City of Shaker Heights. "We wanted to create a concentrated, collaborative community -- an environment for startups in the neighborhood, but a place where they could afford to live, as well."

Lewis says the first tenants will move into the completed homes as early as this week, and she expects all nine units to be fully occupied by June 1.

Applicants must be entrepreneurs at Shaker LaunchHouse. Its accelerator program begins this summer and has attracted entrepreneurs from outside of Northeast Ohio, who move here while engaged in starting their companies.

Lewis says the project is the first of its kind that she is aware of, and that the city's investment in South Moreland has already attracted further private investment, including several new businesses and a new $5 million apartment complex.


Source: Kamla Lewis
Writer: Lee Chilcote
bad girl ventures congratulates finalists in spring biz plan competition
On Thursday, May 2, Bad Girl Ventures celebrated nine finalists in its business plan competition during its spring 2013 graduation ceremony at The Galleries at CSU, announcing the winner of its $25,000 BGV loan and other awards.

Jewels Johnson, owner of the Sugar Plum Cake Company, earned the $25,000 loan for her custom cake bakery. She plans to use the loan to open and expand her new physical store and offices, as well as develop her Devour! Gourmet Baking Mixes line.
 
“We were very impressed with her approach and creativity,” says Reka Barabas, director of BGV Cleveland. “Jewels was super-energetic during the entire course. She went the extra mile and followed up.”
 
The nine women-owned businesses spent nine weeks in BGV’s business course, hashing out their business plans and tweaking their businesses. The class culminated with the participants giving a 60-second pitch to a selection committee.
 
In addition to the grand prize, Su Nimon of Journey Art Gallery and Kelli Handley of The Agrarian Collective each received $5,000 loans from a private giving circle. It was also announced that Jillian Davis of Toast Wine Bar, a BGV Fall 2012 finalist, received a loan from BGV partner the Economic Community Development Institute (ECDI).
 
“All of the finalists are impressive because of their huge passion in what they do,” says Barabas. BGV will continue to work with its partners in the upcoming weeks to help the other finalists secure business loans.
 
BGV will be accepting applications for its fall business class from June 1 through Sept. 1.

 
Source: Reka Barabas
Writer: Karin Connelly
 
preservation nation covers story of playhouse square restoration
In a Preservation Nation Blog post titled “Cleveland’s PlayhouseSquare Theaters Set Stage for World’s Largest Theater Restoration Project,” guest writer Linda Feagler highlights the efforts of Ray Shepardson, who took a struggling and decrepit collection of theaters and began the process that has turned PlayhouseSquare into the second-largest performing arts centers in the nation.
 
“Today, Shepardson’s once improbable effort is Cleveland’s crown jewel: His rescue not only initiated the world’s largest theater restoration project (totaling some $100 million), it transformed that quartet of crumbling venues into a revitalized PlayhouseSquare, one of the largest performing-arts complexes in the country (second only to New York’s Lincoln Center).”
 
Feagler continues to share additional background story and further explain the enormous project the restoration was.
 
Enjoy the full feature here.

amping up and piping down: making music in the physical sense
Cleveland rocks, that much we know. But it also is home to a band of crafty individuals who make music in a more physical sense, by building the instruments others use to play beautiful music. Guitars, amps and pipe organs all are handcrafted by passionate peeps right here in town.
growing construction firm builds dream home in nine-twelve district
Project and Construction Services provides owner's representation and design-build services to clients, so it's appropriate that the growing 53-person firm custom-built its new offices. Now that it's settling into its new space in the Erieview Tower, executives are experiencing their Goldilocks moment: Just right.

"We decided to right-size our space for our present needs, forecasting into the future," says CEO Bob Strickland, who downsized from 12,500 to 10,300 square feet -- despite adding staff -- by designing the space efficiently. "We have staff that come in from the East Side, West Side and Akron, so we've found downtown serves our needs the best, and we enjoy the vibrant downtown atmosphere."

The new 21st floor headquarters offers views of the lakefront and a kitchen outfitted with pendant lights from Ohio City-based Glass Bubble Project. Strickland and his wife recently moved to Tremont after living for 28 years in Mentor, and they've become big fans of the eclectic glass blowing studio behind the West Side Market.

PCS right-sized its offices by reducing conference rooms and support areas, creating a "huddle space" in the lobby that can be used as a meeting space, and reducing the number of storage, IT and work rooms. The office includes open work stations to accommodate future growth. Strickland says designing offices more efficiently has become a major trend in 21st century workplace design.

PCS looked at a number of spaces downtown but selected Erieview because of the potential to customize the space within an existing shell. The firm worked with owner Werner Minshall and HSB Architects on the design and buildout. Strickland says that being in the NineTwelve District is a plus, as the area has recently gained new restaurants and employees enjoy the food trucks on Walnut Wednesdays.

The company is working on a number of projects in Cleveland currently, including the Victory Building, W. 25th Street Lofts and Residence Inn. The company has offices in Wheeling and Charleston, West Virginia, with 26 staff downtown.


Source: Bob Strickland
Writer: Lee Chilcote
united way calls for volunteers to help with cleveland schools transformation
United Way of Greater Cleveland has been a steady supporter of Cleveland's schools for years. The charity organization is now looking for some outside assistance as the city works to change the fortunes of the struggling district.

United Way is inviting volunteers to invest their time and talent in conjunction with the Cleveland Metropolitan School District's initiative to transform its underachieving schools. The CMSD volunteer opportunities have not yet been defined, but United Way president and CEO Bill Kitson knows help will be needed once the new school program launches in the fall.

"We're taking names and we'll get back in touch with people this summer," says Kitson. “We need our entire community to wrap around our kids, their families and their schools.” 

Enrichment programs, mentoring and after-school enrichment opportunities are just a few of the changes afoot for the 13 Cleveland schools impacted by the strategy, the first part of The Cleveland Plan for Transforming Schools.

Interested volunteers can sign up online or call United Way 2-1-1. The organization will contact potential participants when opportunities fitting their skills and interests arise. Helpers might be needed to walk to children to school, or to assist with neighborhood cleanups around school facilities.

"There are so many ways to utilize the community," Kitson says.

United Way officials would like to get a couple of hundred volunteers engaged as soon as the schools open. The group views education as a key to the city's success, and publically supported CMSD's 15-mill levy that passed last November.

"Getting a neighborhood involved in its schools goes beyond education," says Kitson.

 
SOURCE: Bill Kitson
WRITER: Douglas J. Guth
developer set to break ground on phase II of clifton pointe townhomes in lakewood
Abode, developer of the Clifton Pointe Townhomes in Lakewood, is set to break ground on the next phase of the project. As soon as this month, the company could break ground on an additional five units to complement the 17 that have already been sold.

Principal Andrew Brickman says that buyers are drawn to the high-quality, green-built construction, the walkable location in the West End of Lakewood, and the views of the Rocky River Valley and Lake Erie. "I wish we could build another 30 of them," he says. "I think we could sell them."

The five units that are planned have drawn the ire of some local residents. About a dozen attended a recent Lakewood City Council meeting to protest the developer's request for a zoning change to allow townhomes, as well as the 10-year tax abatement.

The Lakewood Planning Commission recently unanimously voted to approve the rezoning and the project now moves to the regular council meeting for a full vote.

Brickman claims Abode is set to break ground on Phase II even though Phase I is not finished. All Phase I units are sold, but construction work is not complete and they haven't yet closed. He attributes his confidence in the market to the buyer response to Phase I, as well as the increased number of buyers in the market.

"Our buyers are people who put a high premium on lifestyle, who want open space for entertaining and no-maintenance living," he says. "They're people who get it. They're people who aren't waiting in line for an hour and a half at the Cheesecake Factory to eat a mediocre meal. I have a couple coming all the way from Solon, another from Chagrin Falls. They're coming because the product is unique."

The units feature classic modernist design, sunken living rooms with high ceilings and large windows, living-level decks and roof decks. They are priced from $379,000 for a two-bedroom, two-and-a-half-bath unit with 1,770 square feet. Phase I offered a 10-year, 100-percent tax abatement on the improvements.

Brickman says his project is a chink in the armor of urban sprawl. "We’re trying to turn around the trend, bring people back to the core and walkable neighborhoods."

Abode is working to obtain bank financing for Phase II. Brickman says that he is seeing more and more buyers wade into the housing market this year. He and his partners are also shopping around Cleveland for another development project.

As for whether or not prices will go up with Phase II, he just says, "We're trying."


Source: Andrew Brickman
Writer: Lee Chilcote
cleveland clinic cmo credited for making brand most recognizable
In a Forbes Magazine post titled “Behind the Brand: CMO Paul Matsen On Cleveland Clinic’s Strides As A Global Marketer,” Jennifer Rooney explains how Paul Matsen has taken his experience from prior endeavors such as Delta Air Lines and worked to establish Cleveland Clinic as one of the most recognizable healthcare brands in the world.
 
From the use of digital, social and traditional media, Matsen's primary goal is to increase brand awareness and ultimately get “those who don’t even need its services yet -- but may someday -- to “get consumers to find out who we are and then in the future for them to consider us as one of their first choices.”
 
Read the full piece and watch the interview here.

11 new businesses will serve growing base of downtown residents and workers
With downtown Cleveland's office vacancy rate three percent lower than it was two years ago and vacancy rates hovering around four percent for apartments, new retailers are leasing empty storefronts in the area. Eleven new retailers will open this year, bringing fresh concepts to the local scene.

New offerings include Cleveland Chop in the former Cleveland Chophouse location on St. Clair, Mirch Masada, Red the Steakhouse, four new shops in the Fifth Street Arcades, Walk in the Park Cafe, Table 9 Martini Lounge and Market Creations Cafe.

Michael Deemer, Vice President of Business Development and Legal Services for Downtown Cleveland Alliance (DCA), cites Walk in the Park and Table 9 as two examples of downtown's resurgence. "We're seeing the area around Perk Park in the NineTwelve District attract new investment in long-dormant retail spaces formerly occupied by One Walnut and the Atlanta Bread Company," he says.

Although Red the Steakhouse isn't slated to open until late summer or early fall, Walk in the Park and Table 9 could open within the next month, Deemer says.

It's a sign of the market's health that empty spaces are being filled. "Cleveland Chop is being reopened by the original owner of Rock Bottom Brewery," he says. "It really does speak volumes that as places like Cleveland Chophouse and Bricco close and are in need of freshening the concept, they're reopening right away."

"There was a lot of concern initially when Cleveland Chophouse closed, but we knew... that there were literally dozens of inquiries as soon as the news hit."

Although office vacancy increased slightly in Q1 2013, Deemer says this is because of Eaton's departure. "We've had 25 new businesses move into downtown committing over 4,000 new jobs in the last two years," he says. "Retailers are responding exactly how we would expect them to, following where the people are."


Source: Michael Deemer
Writer: Lee Chilcote
housing goes boom: optimism about city's future leads to boost in home sales
Thanks to a brighter economy and heightened optimism about our city’s future, the Cleveland housing market is waking from its five-year slumber. Home sales are rising, prices are inching back to pre-recession levels, and stories of buyers getting outbid on homes are not at all uncommon.