Regional Economy

playhousesquare breaks ground on star plaza renovations, first phase of $16m transformation
PlayhouseSquare already is a gem in the crown of downtown Cleveland, yet its sparking renaissance will become even more breathtaking with the addition of a 20-foot-tall LED "chandelier spectacular" at E. 14th and Euclid in the theatre district.

That chandelier, boasting over 4,600 crystals and hoisted 40 feet in the air, is the centerpiece of a $16 million transformation that will bring the beauty found inside PlayhouseSquare's historic theatres out onto the streets of the district.

The project will also feature new electronic signage and lighting, gateway entry points to define the neighborhood, and the addition of a full-service cafe and state-of-the-art outdoor stage to the Star Plaza outdoor space. The district will gain some of the drama found in Times Square in New York City and Millenium Park in Chicago while retaining the elegant, historic character that's uniquely Cleveland.

"We believe this will be transformational," says Art Falco, President and CEO of PlayhouseSquare. "It's not just a district anymore, it's a neighborhood. We see it as an economic development project as well as a physical enhancement project. It will draw more office tenants and spur more residential and retail development."

The project was designed by the experiential design firm The Barycz Group, which has completed similar projects in Chicago, Las Vegas and Dubai.

PlayhouseSquare has not yet raised all of the funds necessary to complete the project, but Falco expressed confidence in the project's success. Star Plaza is already under construction and work will be completed in time for a slew of summer events. The remainder of the project will be completed in 2014. Public-private partnership, naming rights and philanthropic contributions will fund it.

"We feel we're going to set a very high level of design standard," he says. "I think that others who follow us will be compared to us."


Source: Art Falco
Writer: Lee Chilcote
wine mag highlights trio of local gems
In a Wine Enthusiast Magazine story titled “Hot in Cleveland: Three Wine Bars to Visit in Cleveland,” the editors point out that Cleveland is attracting the likes of young artists, artisans, and web entrepreneurs due to modestly priced real estate and an above-average food and beverage scene.
 
“And while the food and beer scenes have always been strong (C-town is home to Michael Symon's empire and the Great Lakes Brewing Co.), this recent trend is raising the culture quotient and energizing the wine scene. There is life beyond the Rock and Roll Hall Of Fame in Cleveland.”
 
Market Avenue Wine Bar, La Cave du Vin and Lola Bistro each provide a unique draw to the young and old alike, from high ceilings, parquet floors, and easy access to the West Side Market for Market Avenue Wine Bar to the genius of Michael Symon’s culinary team at Lola, Cleveland has plenty to keep folks returning for more.
 
Enjoy the full story here.

student-owned distributor business wins prize at entrovation
Danny Sheridan comes from a family of entrepreneurs -- his father invests in small tech businesses and deals in commercial real estate for medical officers, and his mother is a marketing consultant. So it was only natural that the junior at Beachwood High School would start his own business. After finding he had a knack for selling things on eBay, Sheridan started Woodside Distributors, distributing energy efficient LED lights for Solon-based Mr. Beams.
 
“Mr. Beams didn’t have a lot of eBay, but I was really good at eBay,” says Sheridan. “When I ran into them I immediately was able to distribute their products online. I was able to add my area of expertise, and now we’re on Amazon and other places.”
 
Sheridan’s business has quadrupled in the past few months and he expects to reach $100,000 in sales by the end of the year.
 
Sheridan, who is president of the Beachwood High School Business Club, set up a booth at Entrovation on April 19 to showcase his company and the products he distributes. “There were a ton of people -- 1,000 or so -- who just came by to say hi,” he recalls. “The biggest reaction was, ‘Hey, you’re just a kid.’ Then it was, ‘Wow, he’s actually selling.’ I was fortunate; I made a few hundred bucks that day.”
 
In fact, Sheridan won the Innovative Entrepreneur of the Year award, sponsored by the Burton D. Morgan Foundation. He received the top prize of $3,000. “I’m excited to buy more inventory and expand even faster,” he says.
 
Sheridan’s business is growing so fast, he’s looking for new fulfillment options. “I’ve been using Amazon to do more fulfillment,” he explains. “But it’s getting to the point I can’t ship from my house any more. The mailman can’t keep up.”

 
Source: Danny Sheridan
Writer: Karin Connelly
art daily touts cma's beckmann acquisition
In an Art Daily feature titled “Cleveland Museum of Art acquires dramatic painting by seminal 20th century German artist Max Beckmann,” the editors continue to praise the Cleveland Museum of Art for their ongoing work in building some of the most comprehensive collections in the country, including the recently added painting by German artist Max Beckmann.
 
“The acquisition of the Beckmann marks the successful conclusion of a decade-long hunt for a major work by the artist and adds a fascinating and challenging picture to the museum’s holdings of modern European art,” explains C. Griffith Mann, Ph.D, the museum’s deputy director and chief curator. “The African textiles are notable not only for their quality but also for their provenance, and the gifts speak eloquently to the impact our collectors and donors are capable of making across our collections.”
 
The feature goes on to highlight the life and career of Beckmann, including the nature of his work for which he is most known.
 
Explore the full feature here.

blackstone launchpad opens fourth location on case campus
The fourth Blackstone LaunchPad opened on the CWRU campus on April 23, providing a place for aspiring entrepreneurs to gather, learn and get advice.

“LaunchPad is aimed at students seeing it and saying, ‘I have an idea,’” says Deborah D. Hoover, president and CEO of the Burton D. Morgan Foundation. “It’s aimed at students walking in and talking to people and an idea takes off.”
 
The Burton D. Morgan Foundation in Hudson and the Blackstone Charitable Foundation announced in November 2011 that they had committed $3.2 million over three years to open LaunchPad locations in Northeast Ohio to train area student entrepreneurs.
 
The LaunchPad is a venture coach program developed at the University of Miami, Florida in 2008. The program provides participants with advice and mentorship to take business ideas to fruition. Students are matched up with venture coaches to guide them through the development process.
 
The other Northeast Ohio LaunchPads are on the campuses of Baldwin Wallace University, Lorain County Community College and Kent State University. The goal is to create 150 new sustainable companies in the next five years, which could generate as many as 3,000 jobs. Hoover says they expect to exceed that goal.
 
More than 40 students already are registered with the CWRU LaunchPad and 16 are exploring their business ideas. “More than 400 student ventures are underway among the four campuses,” says Hoover. “We think that’s pretty great.” Registration is ongoing.
 
Nearly 200 people turned out for the opening in CWRU’s Thwing Center. “It was great, we were really pleased with the way it went,” Hoover says of the opening. Attendees included Case president Barbara Snyder and Bob Sopko, director of the CWRU LaunchPad, as well as Joan Solotar, chair of the Blackstone Charitable Foundation and Vinny Gupta, chair of the Ohio Board of Regents.

 
Source: Deborah D. Hoover
Writer: Karin Connelly
organization asks parents to pledge allegiance to their children's education
 About 2,000 days pass from when a child is born to the moment he or she enters kindergarten. Officials from The Centers for Families & Children believe every one of those days is critical in preparing a child's educational future, and have created a new campaign to back up that point.

The 2,000 Day Pledge asks parents already involved with The Centers to keep their kids in an early learning program for as many days as possible within the first 2,000 days of that child's life. It also requests parents choose a high-performing elementary school compatible with their young student's learning needs, with graduation from high school being the long-term goal.

Those 2,000 days are a window to prepare children for success in school and life, says Sharon Sobol Jordan, president and CEO of The Centers. "We have this same amount of time with our parents to help them get ready to be good advocates for their children," she says.

Kids who enter kindergarten lacking a solid educational foundation are at risk of falling behind peers who have those advantages, says Amy Martin, the organization's vice president of marketing and communications.

"The gap widens in elementary school, and by high school you start to see the drop-out rate rise," says Martin.

While the new campaign is mostly aimed at existing clients, The Centers' officials hope word about the pledge spreads to expectant mothers and other members of the community.  In addition, The Centers doesn't just ask parents to pledge, but considers the campaign a shared commitment between itself and participants.

"We want to help parents fight for the education of their children," Martin says. "We're partners with them every step of the way."
 
SOURCE: Sharon Sobol Jordan, Amy Martin
WRITER: Douglas J. Guth
toa expands global presence with largest customer to date
TOA Technologies announced that Madrid, Spain-based Telefonica has chosen TOA's mobile workforce management software to manage its worldwide field technicians. Telefonica, which is one of the largest telecom companies in the world, chose TOA for its cloud-based ETADirect technology and its ability to ramp up operations quickly in multiple locations.
 
“It was a fairly long selection process,” says TOA vice president of worldwide marketing John Opdycke. “Telefonica originally thought it would be an on-premise solution, but then they realized the cloud-based solution would allow them to go one country at a time.”
 
TOA will implement its products first in Brazil, followed by Spain, Argentina, Chile, Columbia and Peru. Eventually, TOA will be in 24 countries with Telefonica. “There’s nothing anyone needs except access to a browser,” explains Opdycke of why TOA was attractive to Telefonica. “They can be non-standard, browser agnostic and platform agnostic. Telefonica needed that flexibility.”
 
Telefonica is TOA’s largest customer to date in terms of size. More important, Opdycke says, is Cleveland’s increasingly strong presence in the global technology marketplace. “We’re proud to represent the Cleveland technology market and the international market,” he says. “TOA is one of the leading companies in the Cleveland market that is really doing international business.”
 
TOA employs 56 people in its Cleveland headquarters, and another 454 worldwide. The Telefonica deal will add employees to TOA in Spain and Brazil, and perhaps Cleveland. Telefonica’s CTO and other team members are planning a visit to Cleveland.
 
In the meantime, TOA is in the midst of expanding its headquarters from 8,200 square feet to 17,000 square feet. The company was also recently named as a finalist as Tech Company of the Year in the 2013 NEOSA Tech Week Best of Tech Awards.

 
Source: John Opdycke
Writer: Karin Connelly
tech week enjoys record attendance, showcases best of tech in cle
NEOSA Tech Week brought 1,600 attendees to events around Cleveland last week, tripling its numbers since it first started three years ago. “It’s really inspiring to see the region recognizing the value and importance of the IT industry in Cleveland,” says NEOSA director Brad Nellis.

From the NASA International Space Apps Challenge, which had 34 local participants in a worldwide event of 9,000, to the much-anticipated Best of Tech Awards, to educational events and job fairs, Tech Week highlighted both the emerging technology companies and the more established and growing businesses in the region.
 
“We saw a lot of new companies we hadn’t seen before and that was kind of cool,” says Nellis. In particular he cites iOTOS as a standout winner in the new Best of Tech category Most Promising Startup. “These guys showed a high degree of promise. iOTOS holds the opportunity to be something big coming out of Northeast Ohio.”
 
UrbanCode, which announced Monday that it has been acquired by IBM, won Best Software Product. “UrbanCode really stands out in the market,” says Nellis. “It was cool that we give them an award on Thursday, and on Monday they announce they’ve been acquired. We’ve been following them for a couple of years and they’re a company that’s growing like wildfire. They’ll probably double in size again this year.”
 
Hyland Software won Tech Company of the Year, Vox Mobile won Best IT Services Company, and DecisionDesk won Best Emerging Company. Nellis points out that all of the finalists are impressive companies as well, having emerged out of 60 nominations in five categories. Six CIO of the Year were named in various categories by Crain’s Cleveland Business.
 

Source: Brad Nellis
Writer: Karin Connelly
rise of the rest: it's not just silicon valley anymore, people
Has Silicon Valley jumped the shark? Ask many keen observers of technology hubs from coast to coast and they'll tell you that 2013 is prime time for startups to bloom in unexpected cities like Detroit and Cleveland. Dubbed the "Rise of the Rest," the burgeoning trend documents the blossoming of entrepreneurialism in unexpected places.
these ain't no boomerangs: transplants relish life in a new corner of the world
At times it seems like everybody living in this town was born in this town. After all, who would choose to settle here unless they had deep family roots? We introduce four transplants who moved to Cleveland and never looked back. Not only have they made the most of it; they've made a life of it.
alexander mann solutions expands steadily after choosing cleveland as its u.s. hub
Talent management firm Alexander Mann Solutions unexpectedly chose Cleveland as the hub for its U.S. operations last year. The company was all but set on Raleigh, North Carolina, when a full-throttle pitch by business leaders changed their minds. Afterwards, CEO Rosaleen Blair said the firm was "love-bombed" into choosing Cleveland. A package of incentives from the State of Ohio reportedly helped to seal the deal.

Now the firm is quickly expanding into its temporary offices in the Erieview Tower in downtown Cleveland. It has doubled in size since opening in August -- the firm now employs 40, and plans are in the works to ramp up to 60-75 employees by the end of the year.

"It's getting smaller by the day," says Mark Jones, Head of Global Client Services for Alexander Mann, of the current, 8,000-square-foot office. Jones moved here from the U.K. with his family. "We are looking at all options downtown."

Based in London, AMS employs more than 1,800 people, and assists clients in more than 60 countries. Cleveland is the firm's fifth operations center, with additional hubs in the U.K., China, the Phillipines and Poland. The firm has said that the hub in Cleveland could grow to become as large as 300 employees.

Finding the right talent for AMS in Cleveland has been harder than he anticipated. "Part of the challenge is that what we do is not straightforward. We're not a staffing firm. We are a specialist organization that deals with large corporate clients, handling all aspects of talent management for those clients. Not only does that mean finding candidates, but the complete onboarding of candidates."

Alexander Mann is currently hiring qualified individuals with experience in recruiting. Jones says he's been happy with the level of talent they've identified so far. "The caliber of people we've been able to hire is very, very strong."


Source: Mark Jones
Writer: Lee Chilcote
survey says: cle is a small-biz friendly city
In a Thumbtack.com survey titled “United States Small Business Friendliness,” the editors grade Cleveland an “A-“ in overall friendliness to small business. They also gave Cleveland an “A” in ease of hiring and an “A+” in training and networking programs.
 
“Starting a business is one of the greatest risks I have undertaken. I have the good fortune of starting that business in Ohio. The State gave me an entire website guiding me so that the odds of success are greater. I am not sure I can qualify starting a business as easy, but the support in my state made certain that it wasn't too painful,” shared a Cleveland-based marketing consultant.
 
Cleveland did have some areas for improvement despite its high overall grade. Regulations and tax code issues can sometimes be challenging for small business owners according to the findings.
 
Check out the complete survey here.

sociagram adds a personal touch to online gifting
Ryan O’Donnell has created a way to add a personal touch to online gifting. The founder and CEO of Sociagram has created an online cloud-based platform to create customized personal video messages. O’Donnell recognized that people enjoy sending e-cards and adding other personal touches when they send online gifts.

O’Donnell started Let’s Gift It in 2011, an online group gifting site, but quickly recognized the market wasn’t there. “What we learned is we were in a startup graveyard,” he says. “There was low perceived value and a high level of complexity to integrate it.”
 
But the idea behind Let’s Gift It led to Sociagram in 2012. “Since 1996, the only option was printing out a gift message on a packing slip that gets sent out with the product,” explains O’Donnell. “We realized we need more than that. With Sociagram, grandma and grandpa live in another state, they can click a button and sing happy birthday to their grandson. Dad can then record the grandson opening their gift.”
 
Retailers can also incorporate Sociagram into their gift options. Sociagram clients include 1-800-Bakery, Ashland Addison Florist Company and Mak·a·boo Personalized Gifts.
 
Sociagram recently received a $250,000 investment from JumpStart to further develop its platform. “They’ve been great partners,” says O’Donnell. “They’ve helped us think it through.” O’Donnell just moved Sociagram’s offices to Cleveland from New York. “Cleveland has been a very receptive place for us,” he says. He’s currently working out of the FlashStarts offices.
 
The company currently employs two software developers and two marketing and sales people, as well as an intern. O’Donnell plans to hire an additional four people as the company grows.

 
Source: Ryan O’Donnell
Writer: Karin Connelly
ground breaking takes place on ambitious hansa house redevelopment in ohio city
Even in Ohio City's Market District, where monthly announcements of new businesses opening are not uncommon, this one is noteworthy. Boris Music, the Slovenian-born owner of the Hansa Import Haus at West 28th and Lorain, is set to break ground on a multi-million-dollar expansion that will transform a dated store into a restaurant and microbrewery.

For years, Hansa Import Haus has been a favorite of locals and those in-the-know -- its faded, faux-German exterior concealing the treasures of European chocolates, cheeses, meats and beer within. To outsiders, it was like: "That place? Is it even open?"

Yet Music, who owned eight other businesses in Cleveland but has shut them all down to start this project, says that the Ohio City neighborhood has finally been redeveloped to the point where he can jump in and pursue his dream project.

"The building was built as a fortress 30 years ago because we had to keep the vandals out," says the 56-year-old. "Now we're moving in the opposite direction. It will be much friendlier, with lots of windows that let the natural light in."

Although Music will roll out his new business in stages, the new Hansa House will hold an exclusive license to brew Pivovarna Lasko beer, Slovenia's largest beer producer, and also feature a European-style restaurant that offers lunch and dinner service. Later, Music plans to add a wine cellar and offer breakfast.

Designs for the new venue show the defensively-designed exterior opened up with large storefront-style windows and a new addition on the current parking lot. The design looks a bit like an Austrian ski lodge crossed with an ethnic beer garden.

As for the menu, Music says that he'll serve simple, high-quality food priced well. "Good ingredients, good quality," he says. "If you put something good in the pot, you get something good out. If you put garbage in the pot, you get garbage out."

More specifically, Music plans to bring in rotating chefs from Europe to deliver a menu that will focus on cuisine from a specific region for several months at a time. Cuisine from Hungary, Italy and Slovenia are likely options. Music says it's a concept he's seen work well in New York City that he wants to import here.

The Hansa Haus will also have a full bottling line. "This is nothing bombastic, it's not Great Lakes Brewery," he says. "We'll still be a microbrewery, and we want to help local breweries be more effective by offering them a cost-effective service."

Music intends to begin brewing beer in July and open the brewpub by October.


Source: Boris Music
Writer: Lee Chilcote
melt included among best grilled cheese sandos
In honor of National Grilled Cheese Month, a Relish listicle rattles off “America’s 10 Best Grilled Cheese Sandwiches.” Cleveland’s Melt Bar and Grilled makes the list with multiple locations throughout the area.
 
“Boring thin-sliced white bread and American [cheese] are things of the past,” says Melt Bar and Grilled owner Matt Fish of his forwarding-thinking sandwich philosophy. “The more attitude and adventurous you can make the grilled cheese the better.”
 
Check out the full write-up here.

a tale of two cities' newspapers
In a The Editor's Room feature titled “The Times-Picayune Fiasco: Newhouses Give Cleveland a Better Deal Than New Orleans,” Errol Laborde explores in his commentary why the Cleveland Plain Dealer did not get sliced and diced nearly as badly as New Orleans’ Times-Picayune in their restructuring.
 
Laborde details how both city's citizens were vocally passionate about saving their dailies, however Cleveland was somehow spared whereas New Orleans suffered massive cuts.
 
“New Orleans may have gotten the shaft and Cleveland spared simply because our town came first. The protesters down here may not have saved their daily but they got a message across and that ultimately may have helped The Plain Dealer,” Laborde writes.
 
Read the full passionate commentary here.

foundation grant sends message, gives financial boost to 2014 gay games
The 2014 Gay Games was a great "get" for the Cleveland-Akron area, as the region was selected over larger competing metropolises like Boston and Washington, D.C. The Cleveland Foundation has reinforced the notion of the games' importance with some hefty financial support.

The foundation recently awarded the games a $250,000 grant, forming a partnership that makes the organization the games' top sponsor. The event is now named the 2014 Gay Games presented by the Cleveland Foundation, representing the first presenting sponsorship in the games’ 31-year history.

"We saw the games as an important event coming to Cleveland," says foundation executive vice president Bob Eckardt. "This [grant] sends a message about the area as an inclusive community."

As a result of the partnership, a new LGBT fund also is being established at the foundation. Launching at the end of the games next August, the fund will assist LGBT organizations and serve as a donation source for people interested in LGBT causes.

The forthcoming sports and cultural festival, aimed at promoting respect and understanding of the gay community through athletics, is expected to draw about 30,000 people to the region, including 11,000 athletes.

Foundation leaders maintain that the games' social impact on Northeast Ohio is just as important as its potential economic benefits. "Our hope is it will leave a legacy of a region more sensitive and welcoming to the LGBT community," Eckardt says.

That relationship is already growing, says the foundation VP, as games' leaders are now cultivating relationships with local businesses intent on strengthening Greater Cleveland's support of LGBT society.

"This is a great opportunity for the entire community to work together," says Eckardt.

 
SOURCE: Bob Eckardt
WRITER: Douglas J. Guth
greening of cleveland's building sector gets help from grant
A nonprofit seeking to create environmentally sound, high-performance building districts in Cleveland recently got a hand with its city-greening mission.

The Cleveland 2030 District, a group that would like downtown edifices to consume less energy and water and produce less greenhouse gases, received a $175,000 grant from The Kresge Foundation, funding that will go in part to the salary of the organization's first executive director as well as additional staff support.

The new executive director is Jon Reidy, who has been with the group of architects and engineers since 2011. The bulk of the grant will allow the group to intensify efforts put forth by the national Architecture 2030 project, which aims to reduce climate-changing emissions from the global building sector.

"We're creating a demand downtown for energy efficient projects in the interest of business development," says Reidy, a 15-year veteran of the architecture industry.

The Cleveland group is an offshoot of Mayor Frank Jackson’s Sustainability 2019 project, an effort to transform the city’s economy by "building a green city on a blue lake."

Cleveland 2030 works with owners, managers and developers within the downtown district to expand the number of buildings participating in the project. Five property owners controlling approximately 3.5 million square feet of Cleveland's brick and mortar are signed up so far.

Reidy hopes more area building owners share the project's vision of a future Cleveland where energy efficiency and a cleaner environment are the norm.

"Sustainability can be the foundation for rebuilding our economy," he says.
 
SOURCE: Jon Reidy
WRITER: Douglas J. Guth
flashstarts looking for tech startups to join fast-paced accelerator program
In the penthouse of the historic Palace Theatre, Charles Stack is hoping to foster a few new tech companies -- 10 to be exact -- in Cleveland’s newest business accelerator, FlashStarts.

Stack started FlashStarts in October 2012 and will hold his inaugural startup class this summer. “Come in with a half-baked idea and we finish baking it, slap some cash for equity, and start it in three months,” he explains.
 
Teams of two or more can apply to be one of the 10, but Stack is also looking for 10 interns and even potential entrepreneurs who don’t have an idea yet, but want to help build on somebody else’s idea. “Even if you don’t have teammates or an idea, you can apply and we’ll put you with a team and you will get equity with that team,” he says. “There are a lot of smart people out there who may not have a teammate.”
 
Stack is against the “cookie-cutter approach” to starting new businesses. Instead, he helps each company with their unique needs. “As soon as you apply, if we like the concept we begin the process of launching the company,” he says. Stack immediately gives the teams individual challenges, like researching the patents or market size.
 
“The key to making that business successful is getting the team familiar with us and us familiar with them,” Stack says. “It’s really not the same for every business. Different opportunities require different tools.”
 
Stack is raising $1.1 million to invest in the companies. Teams will receive up to a $20,000 investment -- $11,000 plus $3,000 for each team member. FlashStarts in turn gets eight percent equity in the company. Teams can potentially receive up to $200,000 in follow-on funding upon completion of the program.
 
Stack already has identified six potential candidate teams. He is accepting applications until May 10. Stack also is looking for mentors and advisors. FlashStarts has partnered with DecisionDesk to facilitate the application process and recently brought in Jennifer Neundorfer as managing partner.
 

Source: Charles Stack
Writer: Karin Connelly