Regional Economy

csu wind power co. wins clean energy challenge, heads to chicago for regionals
For the second year in a row, Amplified Wind Solutions competed in the Ohio Clean Energy Challenge. This year the company won $10,000 and a trip to Chicago for a chance to win $100,000 in the Midwest competition.

Amplified Wind Solutions has designed a wind amplification system that can produce up to six times more electricity than a typical wind turbine. The company is targeting the telecommunications industry.
 
AWS CEO and co-founder Niki Zmij had eight minutes to present the company to the competition judges. They were the second company to present, but Zmij felt prepared and that she answered the judges’ questions well. Apparently, she was right.
 
“The winner was not to be announced until the awards reception at the very end of the day, but during our judges’ feedback session they decided to tell us early that we had won,” says Zmij. “They said our presentation really set the bar for the entire day, and wanted to ask us to present again at the awards ceremony so the other teams could hear our pitch. It was such a huge compliment.”
 
AWS is a Cleveland State University company co-founded in February 2012 based on technology invented by Majid Rashidi, chair of CSU’s engineering technology department. Other company members include Terry Thiele, director of sustainable product strategies at Lubrizol Corporation and Jon Stehura, financial manager at Laird Technologies and former CFO of Park Ohio.
 
The company has prototypes at CSU and Progressive Field. They have now completed designs for a third prototype, and Zmij is in discussions with several telecom companies about installing the pilot model on their towers. They are also looking for a manufacturing partner. Zmij predicts AWS will be ready for commercial sale in 2014.
 
If AWS wins the Midwest challenge in Chicago, the company will proceed to the national competition, for a chance to win an additional $100,000.
 
Zmij will earn her MBA in August and will stay with AWS full-time. “I'm fairly certain the entrepreneurial bug has given me the entrepreneurial virus,” she says. “I don't anticipate it going away any time soon.”

The company anticipates hiring additional staff in the third quarter of this year.

 
Source: Niki Zmij
Writer: Karin Connelly
buffalo orders up big platter of cleveland dining awesome-sauce
In a Buffalo News feature titled “Chow down on Lake Erie,” food writer Andrew Galarneau highlights the thriving culinary scene in Cleveland and wonders how and why it differs from Buffalo’s own food scene.
 
Galarneau, questioning local food scribes like the PD's Joe Crea and this pub's own Douglas Trattner, delves deeply into the likely causes for Cleveland's disproportionate maturity when it comes to food and dining. Many of the city's finest chefs are mentioned in the piece.
 
"How did Cleveland get so awesome?" Galarneau muses aloud.
 
“When Symon said, ‘Cleveland is awesome, check it out,’ he wasn’t lying,” Trattner, a restaurant critic and author, is quoted in the piece. “Anybody can get up there and talk about their hometown, but he had stuff to back him up, so it wasn’t just ‘Here’s what I’m doing’ but ‘Here’s what Cleveland’s doing as a dining town, I’d think you’d be surprised.’ ”
 
The scribe notes that “[Eric] Williams won the undying love of tattooed hipsters and blue-collar types with Happy Dog, a bar that serves 75 beers and $3 boats of Tater Tots with as many of the 19 sauces, ranging from black truffle honey mustard to Oaxacan chocolate mole, as you want. And live polka happy hour on Fridays.”
 
Check out the full tribute to Cleveland and get a sneak peak at Buffalo’s budding scene here.
design firm relocates offices from burbs to st. clair superior's tyler village
Rene Polin founded his design consulting firm, Balance Inc., in Chagrin Falls. Yet as he grew, he felt cut off from creative opportunities in Cleveland. In October, he moved his eight-person, nine-year-old firm to 5,500 square feet of open, custom-built office space in the Tyler Village complex in St. Clair Superior.

"Tyler was the most interesting space we found," he says. "It had great character, an incredibly open floor plan and high ceilings. There was the opportunity to build the space exactly our way as well as to build a physical workshop for prototyping."

"Our offices in Chagrin Falls were a little formal, and we're really pretty informal," he adds. "This space is great because it allows us to run around a little more freely."

Polin has also enjoyed the opportunity to get to know his neighbors at Tyler Village, a place he describes as having the amenities of an industrial park, but "so much cooler." It's also a perk that food trucks regularly show up at chow time.

"The Tyler folks are genuinely interested in bringing forward-thinking companies into the space," he says. "They reach out to companies that are bringing something new. There's a certain vibe and energy you can’t find a lot of other places."

Balance Inc. is one of those forward-thinking companies. Polin, an East Cleveland native, majored in Industrial Design at the Cleveland Institute of Art. Balance works on products like Dirt Devil vacuum cleaners and Ninja kitchen gear.

When the work gets boring -- which we imagine rarely happens -- employees can now find inspiration simply in staring out the window. "We have a straight shot to the north, so we get some pretty incredible sky views. It's a pretty good vista."


Source: Rene Polin
Writer: Lee Chilcote
q & a: tom waltermire, chief executive team neo
regional marketing groups sell northeast ohio, one story at a time
For a number of years at the tail end of the 20th century, Greater Cleveland's public and private leaders attempted to pull the city up through ambitious marketing campaigns. For awhile it seemed to work. The national media began referring to Cleveland as the "Comeback City" in conjunction with the grand openings of ambitious projects like Tower City Center, Jacobs Field and the Rock and Roll Hall of Fame and Museum.
 
But toward the end of the '90s a strange thing happened: The city, for all intents and purposes, stopped marketing itself.
 
Why?
 
"We began to believe our own press," says Rick Batyko, president of the Regional Marketing Alliance of Northeast Ohio, which conducts the Cleveland Plus campaign. And civic officials "moved on to other tasks and defunded marketing."
 
In essence, Northeast Ohio stopped telling its tale with the tale barely begun -- a rather large mistake in retrospect. "The underlying economy wasn't doing that well," Batyko says. "That's something you couldn't see in the skyline shots."
 
During the mid-2000s, the region's narrative thread was picked up by Cleveland Plus campaign. Established in 2005 -- with founding members that included Greater Cleveland Partnership, Positively Cleveland and Team NEO -- the organization champions Northeast Ohio as a culturally rich, yet affordable place to live.
 
Read the rest of the story here.
nonprofit works to bring 'digital literacy' to cleveland's underserved
If Northeast Ohio has a digital divide, then Cleveland-based nonprofit broadband provider OneCommunity wants to lay down enough fiber-optic cable to successfully bridge the gap.

The divide is particularly wide in Cleveland's poorer neighborhoods, says OneCommunity CEO Brett Lindsey. In response, his organization created the Connect Your Community Project (CYC). Since 2010, CYC has provided broadband training, equipment and support for nearly 8,000 Cleveland and East Cleveland residents. The group's work is supported through a $18.7 million grant from the U.S. Department of Commerce’s Broadband Technology Opportunities Program (BTOP).

The organization's new adopters receive a refurbished computer at no cost after matriculating through the training program. They also have the opportunity to receive a free modem and affordable, high-speed home Internet service.

In modern society, everything from job postings to health care information is online, notes Lindsey. The idea is not to give Cleveland's underserved access to solitaire or funny YouTube videos, but an electronic education that will allow them to look up information on their child's school system or connect with far flung family members.

"The haves and have nots in terms of technology are significant," says Lindsey. "This is a way to get people engaged."

OneCommunity is also bringing "digital literacy" to Cleveland families with young people on track for college entry but not currently connected to broadband. Computer training and access can go far in spurring parental engagement in a student's post-high school academic career, Lindsey believes.

So far, so good, says the OneCommunity CEO. In its initial CYC data, 75 percent of parents surveyed used their home broadband connection to communicate with their child's teachers and administrators.

"We have to continue to ensure that people don't get left behind," says Lindsey.

 
SOURCE: Brett Lindsey
WRITER: Douglas J. Guth
wsj calls cleveland an 'overlooked entrepreneurial hub'
In a Wall Street Journal post titled “For U.S. Startups, ‘Times They-are-a-Changing,’” Steve Case, co-founder of AOL, shares his thoughts on entrepreneurship and trends that are changing nationwide, including Cleveland.
 
“I’m convinced that we’re beginning to see a regional 'rise of the rest' as cities like Washington D.C., Denver, Chicago, Atlanta, Raleigh, Cleveland, Detroit and many others experience unprecedented growth in startups. Silicon Valley will continue to be our nation’s most vibrant entrepreneurial hub, but a growing number of companies will start up in these often overlooked places.”
 
“America was built by risk-taking entrepreneurs who throughout history have turned dreams into new businesses, disrupted industries, created new ones and inspired the world.”
 
Check out the full piece here.

to accommodate rapidly growing staff, explorys moves into former museum space
Explorys, which offers a secure software platform that allows healthcare systems to summarize, analyze and manage data, has moved into the former home of MOCA. The Cleveland-based company currently has more than 80 employees and is expected to climb to between 110 and 125 by next year.
rising info tech salaries help local companies attract, retain best workers
Salaries for technology professionals working in Cleveland rose by double percentage points over last year, according to the 2013-2012 Dice Salary Survey from Dice, a career site for technology and engineer professionals.

Salaries for tech and engineering jobs rose 11 percent in the city, compared to the national average of just 5.3 percent. The average salary in 2012 was $75,773, compared to $68,519 in 2011 and $65,045 in 2007, according to the report.
 
“It’s really good to see, from a career perspective, salaries going up,” says NEOSA director Brad Nellis. “We like to see more students go into IT after high school because the pipeline is not full enough. The salaries drive more interest among students to go into IT.”
 
Nellis reports that 82 percent of NEOSA companies had job openings last year, and 73 percent expected to add staff this year. Given Cleveland’s cost of living, the salary increase gives the area an advantage, especially when the 11 percent growth ranked Cleveland fifth out of the seven cities that saw double digit tech salary growth.
 
While some of the smaller and startup tech companies in the region may struggle a bit to offer the higher salaries, JumpStart recruiter Kara Hornikel says these companies are also eager to attract the best employees. “Our startups want to attract and retain top talent,” she says, adding that one third of the 50 to 70 open jobs at JumpStart companies are in IT.
 
There are advantages to working at a startup tech firm too. “It’s a lot more exciting for a developer to work in a startup environment,” says Hornikel. “They get a lot more say from start to finish and they get to stretch their creative skills.”
 
The increase gives technology companies in Cleveland the ability to attract and retain talented employees from both within and outside the region. “Northeast Ohio is starting to recognize how important attraction and retention is,” says Sean Turner, senior recruiter at JumpStart. “We’re trying to be more competitive about attracting talent here. With the salary increases compared to the national average and the cost of doing business here, you get more bang for your buck.”

 
Sources: Brad Nellis, Kara Hornikel, Sean Turner
Writer: Karin Connelly
growing background check provider safecare transitions into the b2b market
SafeCare, which provides continuous monitoring and background checks of employees in the healthcare industry, received a $25,000 grant in November from the Innovation Fund. The money will help SafeCare expand and refocus the company, which was formed out of Bizdom Cleveland’s inaugural class in April 2012.

The grant will allow SafeCare to concentrate more on the B2B market, rather than the consumer market. The company monitors employees on a monthly basis against nationwide healthcare and criminal public data sources.

“We will be using that money to really concentrate on flushing out our B2B offerings,” explains SafeCare founder and CEO Lissette Rivera. “We’re moving away from consumer products because of the sticky situations you can have when you share people’s information.”
 
SafeCare is in the process of re-designing their website to create a more personal feel. “We’re focused on providers rather than families, and our website will have a more warm and fuzzy feel,” Rivera says. The new website should launch by the end of this month.
 
SafeCare has three clients spanning nine healthcare facilities. Rivera has grown the company to four employees -- a CTO, two contract employees and a paid intern -- and is hoping to hire a salesperson in the next six months. “We’re fast moving in the direction of creating more and more jobs,” boasts Rivera.

 
Source: Lissette Rivera
Writer: Karin Connelly
dispatch covers ohio cities experiencing urban growth
In a Columbus Dispatch story titled “Cities’ hearts beating strong in Ohio’s three C’s,” writer Steve Wartenberg describes the various ways Ohio’s three largest cities are experiencing urban renewal and growth and the benefits that go along with it.
 
“In Cleveland, the Downtown Cleveland Alliance has helped spur $5 billion in investment, including about $3 billion in the central business district,” Michael Deemer, vice president of business development, was quoted as saying.
 
The $350 million Horseshoe Casino has been credited for drawing over a million visitors in its first two months, while the $465 million Cleveland Medical Mart & Convention Center is expected to draw thousands of health-care professionals to Cleveland permanently.
 
“It’s the first of its kind, a medical-innovation showplace,” notes David Gilbert, chief executive of Positively Cleveland.
 
Enjoy the tale of three cities here.

next city explores cleveland's future in casino gambling
In a Next City post titled “Downtown Roulette: Will Casinos Be a Win for Ohio Cities?” writer Anna Clark questions if casino gambling belongs in urban centers such as downtown Cleveland.
 
“Last year, after Ohio became the latest state to legalize casino gambling, its first gaming complex opened in downtown Cleveland. Casinos in Toledo and Columbus appeared soon thereafter, and another is slated for Cincinnati. But will these glitzy institutions deliver the new tax revenues that political and business leaders expect?”
 
Can the casino industry continue to flourish and will Cleveland be among the cities to benefit from the industry?
 
Find out the answers here.
expecting 15 to 20 percent sales growth, 4 walls to add staff
4 Walls, a Cleveland designer and manufacturer of digital wall coverings for residential and commercial markets, has partnered with Sherwin-Williams in a new program, SurroundDecor.

The program caters primarily to the health care, hospitality, retail and corporate markets, and features new original digital designs printed on premium recycled PVC-free material. Customers choose their designs, colors and sizes and SurroundDesign creates custom murals for their spaces.
 
4 Walls and Sherwin-Williams are long term partners, and SurroundDecor is a natural fit, says4 Walls founder Patrick Walker.

“We have a good and close relationship with the decor group at Sherwin Williams, and have for many years,” he says. “They are familiar with our commitment to quality in both product design and manufacturing. When we presented the program, they felt we'd be a great partner.”
 
Sherwin-Williams announced the program at its annual show last week. Their sales network will handle initial requests and quotes, then 4 Walls will take over. “They not only handle 100-percent of the sales process with their rep network, but they also field the incoming requests for quotes and information,” says Walker “As soon as the questions get more complex and technical -- things we like to handle and take off their plate -- they pass the calls to us. They are great to work with, and provide solid guidance regarding their needs, and those of their customers.”
 
Because one order can typically take between three and 12 months to complete, Walker anticipates sales in the SurroundDecor program to ramp up by second quarter of this year. “We are planning for 15 to 20 percent sales growth, and to hire one to two additional people,” Walker predicts. “This is our forecast, and is certainly achievable. Getting there will of course depend on both the overall economy and the trends in our industry. As always, we are cautiously optimistic.”

 
Source: Patrick Walker
Writer: Karin Connelly
great lakes neurotechnologies receives $280k to study deep brain stimulation
Great Lakes NeuroTechnologies (GLNT), which creates biomedical technologies for the treatment of movement disorders, announced last week that they will be leading a study to improve algorithms for deep brain stimulation in treating Parkinson’s disease.

The study will use GLNT’s Kinesia technology and is funded by a $283,828 phase I Small Business Innovative Research grant from the National Institutes of Health's National Institute of Neurological Disorders and Stroke. It will take place at the University of Alabama at Birmingham this spring.
 
Deep brain stimulation involves implanting an electrode in a certain area of the brain to treat the side effects of Parkinson’s disease and other movement disorders. But the technology has varied results. GLNT hopes to improve the outcomes.
 
“Implanting the electrode is more art than science right now,” says Dustin Heldman, biomedical researcher and principal investigator for GLNT, explaining that outcomes depend on amplitude and frequency -- leaving a lot of variables on the individual programmer.
 
“With the existing Kinesia system we’re trying to level the playing field for everyone by making an objective standard way of programming,” explains Heldman. “We’re taking the guesswork out of it.”
 
While phase I will just collect preliminary data, deep brain stimulation could be another application for GLNT’s Kinesia. “It’s great for us,” Heldman says. “We have this sensor technology now, it’s released and it’s FDA cleared. This is just another application. Assuming we get good results, we'll apply for a much larger study.”
 
GLNT grew from 15 to 23 employees last year, and is hiring three additional people now.

 
Source: Dustin Heldman
Writer: Karin Connelly
cleveland public theatre recognized for production of women's work
In a Huffington Post feature titled “Women Playwrights Applaud Theaters,” Monica Bauer reports on theaters that make an effort to feature the work of female playwrights, but are not considered a female-centered establishment.
 
“The Applause Awards are based on the previous year's season, so the first awards go to theaters for their 2011-2012 productions," she writes. "Theaters whose mission is to produce women's work were not eligible. The winners are: Cleveland Public Theatre, Cleveland, OH; Little Colonel Theatre, Pee Wee Valley, KY; Nora Theater, Cambridge, MA; Playwrights Horizons, New York, NY; and, Symmetry Theatre, Berkeley, CA.”
 
While women have been making great strides, still only 18 percent of productions done in the U.S. are from female playwrights. 
 
Enjoy the full feature here.
roll (tax) credits: a second look at ohio's film tax credits
Back in 2011, Fresh Water ran a feature about Ohio's newly instituted Film Production Tax Credit, which helped attract big-budget productions like "The Avengers" and "Alex Cross," plus smaller films like "Take Shelter" and "Fun Size." We decided to revisit the topic to see how it's working out for Cleveland, and Ohio.
horseshoe casino buzzed about in usa today
In a USA Today special titled “All in: Gambling options proliferate across USA,” Matt Villano discusses the increase in casino gambling and entertainment options across the nation.
 
As the numerous casinos vie for entertainment dollars, many are going a step beyond slot machines and gaming tables. For example, Cleveland’s Horseshoe Casino, currently housed in the historic Higbee building, gets props for its architecture.
 
“Smack in the middle of the Public Square neighborhood in downtown Cleveland, the Horseshoe's claim to fame is the building in which it occupies. The Art Deco Higbee Building dates to 1931, and was the city's first department store. The building (and surrounding Tower City Center complex) was added to the National Register of Historic Places in 1976.” Villano notes.
 
Check out the full piece here.
northeast ohio venture and angel investments up 34% in 2012
In 2012, Northeast Ohio was a popular place for venture capitalists and angel investors to back startup companies. Investments nationally decreased by 10 percent last year, and decreased in the rest of Ohio by 33 percent, according to a study in The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association.
 
But in Northeast Ohio, according to the Northeast Ohio Venture Capital Advisory Task Force, 105 tech-based companies in Greater Cleveland raised $201 million from venture capitalists and angel investors -- a 34-percent increase over the amount raised by companies in 2011.
 
“We’ve been on an upward trajectory of the number of companies that have been able to raise money,” says Samantha Fryberger, vice president of marketing for JumpStart. “There’s a strong angel community here and our angels are well organized and well educated.”
 
In fact, Northeast Ohio has the first and fifth largest angel funds in the country. Fryberger says the diversity of businesses and the number of support organizations attract investors to Northeast Ohio. 
 
“We have a very robust early-stage investment ecosystem right here in Northeast Ohio,” says Clay Rankin, managing member of the North Coast Angel Fund, which invests in life sciences companies and is the country’s fifth largest angel group. “We’ve been building a lot of momentum in the last six to eight years. We’ve been very fortunate in supporting early stage ventures.”
 
Citing successful companies like Juventas Therapeutics, Cleveland HeartLab and Neuros Medical, Rankin says it’s no wonder Cleveland is growing in investments. “There really are world class companies being developed right here in our backyard,” he says. “When you have world class companies, you attract support from angel groups.”

 
Source: Samantha Fryberger and Clay Rankin
Writer: Karin Connelly
cpac roundtable asks how arts can foster sustained economic prosperity for cleveland
Arts and culture can define a community, creating a critical mass that translates into jobs, business opportunities and, ideally, sustained economic prosperity. These were the words of Northeast Ohio Sustainable Communities Consortium Initiative (NEOSCC) director Hunter Morrison during a January 25 roundtable hosted by the Community Partnership for Arts and Culture (CPAC).

These also are words that CPAC president and CEO Tom Schorgl likes to hear. The focus of the roundtable event was sustainability, and how the arts and culture community can assist the region as it evolves through population and land use shifts. The local arts sector becoming engaged in these issues can help keep Northeast Ohio resilient, vibrant and sustainable, said Morrison, a notion that the CPAC president shares.

"We have cultural clusters throughout the region, and the ability to communicate on a larger basis with the population about those clusters," says Schorgl. "We need to continue to reach our audience."

The roundtable, which drew over 50 attendees to the Cleveland Museum of Natural History's main gallery, was CPAC's first such event of the year. The nonprofit will sponsor similar forums through November, with an overall aim of connecting the arts and culture realm with professionals from sectors including community development and health and human services. Past roundtable speakers have included Cuyahoga County Executive Ed FitzGerald, Cleveland Metropolitan School District CEO Eric Gordon, and City of Cleveland Mayor Frank Jackson.

"The idea is to provide a forum for new ideas around a common cause," Schorgl says.

 
SOURCE: Tom Schorgl
WRITER: Douglas J. Guth