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fund for economic future awards $5m in grants to economic development organizations
The Fund for Our Economic Future approved $5.035 million in grants to go to seven regional economic development organizations to continue their work in developing companies and bringing jobs to the Northeast Ohio.
 
The organizations are: NorTech, JumpStart, BioEnterprise, Team NEO, MAGNET, WorkAdvance and the Agriculture-Bioscience Industry Cluster. The organizations specialize in everything from entrepreneurship and technology to healthcare, manufacturing and bioscience, to general business attraction.
 
“Although funding was down 15 percent this year, the good news is the impact of these grantees continues to go up,” says Brad Whitehead, president of the Fund. “There’s a real sense of momentum in the work of these great teams.”
 
Many of the organizations have expanded their support of businesses by working together to accomplish the common goal of attracting, retaining and supporting businesses in Northeast Ohio. “Most of them have done a great job of expanding,” says Whitehead. “It’s gratifying to hear stories of companies touched by multiple organizations. To see them surrounded with support is great.”
 
The grantees are chosen based on four criteria: tangible data like job creation; what the organization is doing to promote its respective niche industry; the organization’s efforts to network with other organizations; and assurance of a plan for economic inclusion.
 
The Fund is a collaboration of philanthropic organizations and individuals that have united to strengthen the economic competitiveness of Northeast Ohio through grant making, research and civic engagement.

 
Source: Brad Whitehead
Writer: Karin Connelly
growing minority-owned businesses recognized by charter one leadership circle
Nine northeast Ohio minority companies were recognized on May 22 at the JumpStart offices as inaugural members of the Charter One Launch100 Leadership Circle. The Circle recognizes diverse entrepreneurs committed to turning their business ideas into some of the region’s most impactful minority-owned or led companies. 
 
“It was a really wonderful event,” says Gloria Ware, JumpStart senior advisor. “It was a really good example of companies that are willing to grow jobs and keep moving forward.”
 
Minorities account for 40 percent of the entrepreneurial community, yet many of the companies have only one or two employees. These nine companies are on track to have an average of 50 employees in the next three to five years.
 
“We would like to highlight these entrepreneurs who are mentors or role models to other minority entrepreneurs in the community,” says Ware.  “Entrepreneurs in general can feel very overwhelmed and alone in their business. I think this was a good event for them to move forward.”
 
The nine companies are: Algae Producers of America, CFRC Water & Energy Solutions; MET Innovations; OPTIMA Lender Services; Queen Ann Inc.; RKN Corporation; Simply Southern Sides; Wellness Integrated Network; and Zuga Medical.
 
Ware says the event was also beneficial for the Charter One bankers in attendance. “They got to hear some of the entrepreneur’s struggles,” she says. “It was a win-win for everyone.”
 

Source: Gloria Ware
Writer: Karin Connelly
women’s entrepreneurship day celebrates leadership, collaboration in business
Elite Women Around the World and COSE hosted Women’s Entrepreneurship Day Thursday, May 31 at the COSE offices. The event featured speakers, panel discussions, professional development sessions and networking, all along the themes of entrepreneurship, leadership, innovation, economic development and social impact.
 
Elite Women Around the World also honored four women with the Women of Distinction Award.
 
“This recognition is for women who have gone above and beyond the call of duty,” says Rita Singh, Elite Women founder and CEO. “These women serve as role models and create projects or programs beyond their normal duties, which help other women achieve success.”
 
The women honored were Lori DeVore, CEO and president of Devore Technologies; Stella Moga Kennedy, founder, president and CEO of LeChaperon Rouge childcare and elementary schools; Venera Izant, Merrill Lynch financial advisor, Izant-Creadon Group; and Cyndie Spanier, psychologist and  deputy commissioner, Pittsburgh Behavioral Medicine.
 
Singh created Elite Women as a forum for women to share their knowledge with other women. “In a lot of organizations, people are in it for themselves,” she explains. “I’m trying to tell them you will be getting more if you give back.”
 
Every Elite Women member must mentor at least one person, creating a large support network within the organization. “Every woman who joins brings another woman to mentor,” says Singh. “So they’re not thinking about themselves, they are thinking about someone else.”

 
Source: Rita Singh
Writer: Karin Connelly
modern hostel to cater to travelers who aim to experience cleveland rather than simply visit it
The soon-to-open Cleveland Hostel in Ohio City will be the area's only modern hostel catering to travelers who aim to experience American cities rather than simply visit them. The venture unites owner Mark Raymond's passion for wanderlust with his beloved hometown, thus enabling him to showcase Cleveland via a unique, affordable venue.
cellbank technologies gets $25k from innovation fund
CellBank Technologies offers a way for surgery patients to plan for future surgeries. The startup company allows patients undergoing knee and hip replacement surgeries to store their own stem cells for possible future procedures. CellBank recently received $25,000 from the Innovation Fund.
 
“We offer a way to harvest and store stem cells without requiring a second surgical procedure,” explains Rachel Uram, CellBank founder and president. “There are one million hip or knee replacement surgeries each year, and surgeons go in and throw out a lot of stem cell-rich tissue. In 2005, five percent of replacement patients had a second surgery that required a bone graft.”
 
Using a patient’s own stem cells in a grafting procedure is “the gold standard in grafting,” says Uram. “Ten years ago they would go into the hip and harvest the tissue and use it. There were more patient complications and it was more painful.”
 
CellBank offers a better solution. “We collect specific tissues, process and store them so the patient doesn’t need a second procedure in situations like bone graft surgeries,” says Uram.
 
The family-run business has three founders, and they have brought on four part-time consultants. They are in the process of raising $1.5 million in seed money to complete testing. The Innovation Fund money will help bring CellBank closer to accepting customers.
 
“When we’re up and running we expect to have 15 to 16 employees,” says Uram. “Everybody loves the idea.”
 
Source: Rachel Uram
Writer: Karin Connelly
 
stockyards employs goats as nature's lawnmower for vacant lots
Megan Meister chuckles as she thinks of the unlikely collision of worlds involved in planting four eat-everything-in-sight goats in the midst of Stockyards -- a neighborhood that long ago shed its past as the home of the city's slaughterhouses.

Yet to Meister, the ebullient director of the Stockyards, Clark Fulton and Brooklyn Centre Community Development Organization, the area's new "Mow Goats" program is about the re-greening of the neighborhood, teaching kids and families about urban agriculture, and possibly even saving the city some money.

"Kids in urban areas don't get the opportunity to be around farm animals very often," says Meister, who worked with residents, The County Line Farm in Geneva, Ohio and the City of Cleveland to pioneer the 25-day program. "This is a creative way to address the problem of vacant lots in our neighborhood."

The "ladies," as they're known at the office, have a regular 9-to-5 job mowing a lot at W. 61st and Frontier Avenue. When they're done with that -- soon, based on their seemingly unstoppable appetite for anything leafy and green -- they'll be rotated to another lot. Meister hired a full-time goat herder for the project.

The Stockyards office receives a slew of calls every season about mowing lots. The City of Cleveland mows lots a few times per year and attempts to collect from property owners, but lacks the resources to mow them more regularly.

Meister hopes the project can be replicated elsewhere. She estimates that it would cost about $9,000 to $10,000 per six-month season to rent four goats, which is actually cheaper than what the city typically charges property owners to mow lots. The excess goat poop is being used to fertilize neighborhood gardens.


Source: Megan Meister
Writer: Lee Chilcote
lucy's sweet surrender opens new bakery and bakeshop in shaker heights
Cleveland's original artisan bakery, Lucy's Sweet Surrender, has finished its move from Buckeye Road to a larger, better situated space in the former Chandler and Rudd building in Shaker Heights.

The new, 3,500-square-foot space features a small retail storefront that opens up to a bakery where visitors can watch the scratch baking process. The traditional Hungarian bakery, a dying breed that once thrived in Cleveland neighborhoods, intends to ramp up its retail business. It will also continue to pop up at area farmers markets, make deliveries in Cleveland and ship orders by mail. 

Owner Michael Feigenbaum says Lucy's is busy at its new, well-trafficked location. "This week, we'll be at four farmers markets and we're already well into wedding cake season," he says. "The growth of new, artisan bakeries in Cleveland has helped us by raising the bar on what our customers are looking for."

Feigenbaum is already dreaming of Phase II of his expansion plans, which may include re-launching a prepared foods business, creating a small cafe, or partnering with other vendors. The Chandler and Rudd building has an additional 3,500 square feet that offer a blank canvas for the owner's next creation.

The long-awaited reconfiguration of the Warrensville/Van Aken/Chagrin intersection will only help him by creating a more vibrant urban district that can compete with Legacy Village and other lifestyle malls, says Feigenbaum.


Source: Michael Feigenbaum
Writer: Lee Chilcote
rising star coffee roasters now open in ohio city firehouse
Kim Jenkins of Rising Star Coffee traded his job overseeing 110 scientists and engineers at Lockheed Martin in Florida to move to Spencer, Ohio, and launch a new coffee roaster in Cleveland.

Given his background in driving technological innovation, it comes as no surprise that his approach to roasting the best possible coffee beans is, well, innovative.

"Specialty grade coffee is the top half to one percent of coffee beans on the market, and that's all we do," says Jenkins, who recently set up shop in the Ohio City Firehouse building on W. 29th Street. "Coffee is the second largest commodity trade after crude oil, and there's plenty of room for growth in Northeast Ohio."

Jenkins' plan is to sell beans wholesale while also marketing to individual consumers and selling coffee by the cup. He's capitalizing on rising consumer interest in the highest-grade coffee, he says. His model appears to be working, as his fledgling company is gaining at least one wholesale customer per week. (The retail operation is still in the works.)

Rising Star's coffee retails for about $14 to $18 per pound, with the higher end reserved for small batch beans produced on micro-lots in Brazil and other places he's visited. He has hired four young workers to assist him with his growing roster of accounts.

"The goal of Rising Star is to create a sustainable business model, make a little money and give opportunities to the young people who work here," he says.

Jenkins says the main difference between his coffee and others is flavor. "You'll be able to taste the coffee like it's supposed to taste, instead of it being weak, burnt or bitter," he says. "People describe it as sweet, nutty, fruity or tasting of cocoa. Most of the world drinks coffee that tastes like that. It doesn't even need sugar."


Source: Kim Jenkins
Writer: Lee Chilcote
brewing up a business: from homebrewer to microbrewer
Cleveland is nationally known as a brewing mecca. While established breweries like Great Lakes and Buckeye Brewing continue to expand, smaller startups are popping up in their shadows. Nourished by home-brewing clubs and finding strong models in Cleveland’s prize-winning breweries, many of these entrepreneurs started by brewing small batches in their basements or garages.
urban sheep grazing could be coming to a vacant lot near you
Drivers traveling along I-90 near E. 55th could experience mild whiplash as they crane their necks to see the sheep grazing on the roadside this summer. It's not the most common sight along the lakefront, and the story behind it is no less unusual.

Michael Fleming first heard of the idea when he was studying Urban Planning at the Levin College of Urban Affairs at Cleveland State University. The mayor of Curitiba, Brazil had used sheep to mow the city's vast parkland, he found out.

"They brought in shepherds for parkland because it was cheaper than using machines," says Fleming. "With large amounts of land, it just makes sense."

A few months ago, when Fleming was hired as Executive Director of the St. Clair Superior Development Corporation, he finally had a chance to import the idea from South America to Cleveland. A flock of 12 sheep are now grazing along North Marginal Road just west of the Quay 55 apartment building. They are tended by volunteers and students from nearby St. Martin De Porres High School.

"About 95 percent of our neighbors think it's cool, and five percent are afraid they'll get picked off by teenagers or coyotes," says Fleming, who has fielded calls from as far away as Detroit about the program. "We wanted to see how it would work on large vacant parcels, and if we could save the city any money on mowing costs."

So far, the Urban Sheep Grazing program has worked out well, with the sheep, guarded by a feisty llama, seemingly content to graze all day in their shaggy lakefront field. Visitors regularly stop by to take pictures and show their kids.

The sheep are loaned from the Spicy Lamb Farm in the Cuyahoga Valley through a new entity called Urban Shepherds. Fleming thinks expanding the program could bring down costs and make it feasible as a mowing alternative; he hopes to have the numbers to back his hypothesis up by the end of the summer.


Source: Michael Fleming
Writer: Lee Chilcote
pink public art display brightens eastman reading garden at downtown library
The ordinary spaces that we walk through every day without noticing form, details or color can very often be transformed with simple changes that cause us to stop and look more closely at our surroundings.

Like pink. And lots of it.

A new art installation in the Eastman Reading Garden of the downtown Cleveland Public Library aims to transform viewers' perception of this quiet, reflective space by adding bold pink chairs and pink window coverings throughout the space. The art project was designed by Cleveland artist Scott Stibich and funded by the Lockwood Thompson Endowment Fund of the Cleveland Public Library.

The 100 moveable pink chairs are part of the See Also program, which brings temporary works of public art to the Eastman Reading Garden. See Also is a partnership between Cleveland Public Library and LAND Studio. Visitors will interact with and become a part of Stibich's artwork as they move the painted chairs around to find their own comfortable place to sit, read and eat lunch.

"My goal was to disrupt the architecture just enough to displace the viewer," says Stibich. "The garden is a space where everyone comes to talk or just reflect and get lost in their day. I carried the pop-up color into the architecture, too."

The colorful window banners were assembled by designer Katie Parland.


Source: LAND Studio, Cleveland Public Library, Scott Stibich
Writer: Lee Chilcote
great lakes brewing jumps in craft beer rankings
According to beer sales volume calculated by The Brewers Association, a Boulder-based not-for-profit trade group that tabulates production statistics for U.S. breweries, Great Lakes Brewing Company is now the 18th largest craft brewery in the country. That is a jump from the #22 position the previous year.
 
According to the same stats, Great Lakes also is now the 27th largest American brewery overall, up from #31 previously.
 
Great Lakes produces over 110,000 barrels of beer annually and serves 13 states and Washington D.C. The company will celebrate its 25th anniversary in 2013.

See all the sudsy stats here.
esquire scribes include velvet tango room in roster of best bars in america
Paulius Nasvytis can add another item to the already crowded wall of big-time media accolades. Esquire magazine, the arbiter of good taste, has just included the Velvet Tango Room in its annual roster of Best Bars in America.

"Perplexed whispers followed the Velvet Tango Room for years after the cocktail bar opened in 1996," begins the Esquire item. "For starters, it was hard to find, tucked in an unassuming building in an inner-ring nib of Cleveland between two trendy neighborhoods, a tiny neon sign the only hint that anything was happening inside. Co-owner Paulius Nasvytis waited tables at the city's finest restaurants before purchasing the building for just $35,000 to execute his vision with uncompromising accuracy: a sanctuary of cocktails priced in the mid-teens. It was an incongruous idea in a city that prizes its shot-and-a-beer corner joints."

Read the rest of the glowing praise here.

eye for vintage accessories leads to unique events-rental company
Maria Blatnick owns more than 200 chairs. None of them match. Not to mention various patterns of antique china, vintage picture frames, galvanized washtubs and windows. “It really runs that gamut,” says Blatnick.

Such an eclectic collection led Blatnick to start HodgePodge Vintage Rentals, a source to rent props and accessories for weddings, events and photo shoots.
 
HodgePodge merges Blatnick’s love for unique design with her love for beautiful things. With a background in retail, she uses her styling experience to develop an eye for vintage products. Her services include rentals (delivery, set up and takedown); event and photo shoot styling; and customized searches for that perfect piece.
 
“It combines everything I’ve always done on the job,” Blatnick says of her business. “I’ve probably driven more than 150 miles at a time to the middle of nowhere. I’ve gone to a lot of antique stores, garage sales, flea markets.”
 
Weddings are popular for rentals right now, for brides looking to be different. ”I have a really large demographic,” says Blatnick. “Mostly I appeal to first-time brides ages 26-32 who want a more personalized, creative, individualized event.”
 
One of Blatnick’s current favorite themes plays on the farm-to-table trend. “My clients want a really homespun feel,” she explains. “They want a real down-home farm feeling.” Rentals to create the feel include windows, washtubs and, of course, vintage chairs.
 
Other popular rentals include books, cameras and suitcases. While Blatnick is trying to list her goods on her website, she is in the process of securing a storefront in 78th Street Studios.

 
Source: Maria Blatnick
Writer: Karin Connelly
ohio city's great lakes brewing adds two 300-barrel fermentation tanks
Great Lakes Brewing Company is now the 18th largest craft brewery in the U.S. and the 27th largest overall. The company brews more than 110,000 barrels of handcrafted beer every year.

The brewing process takes place in a warehouse at Carroll Avenue and West 28th Street near the West Side Market. Visitors to Great Lakes Brewing Company's flagship bar and restaurant on Market Avenue often can catch a whiff of the beer brewing and fermenting as they walk in to grab a pint.

Recently, Great Lakes purchased and installed two new 300-barrel fermentation tanks to further expand its brewing capacity. The new equipment, which was hoisted in by crane through the roof of its Carroll Avenue tank farm, is on top of $7 million in capital improvements completed in 2010 to expand capacity.

Great Lakes beer is now available in 13 states and Washington D.C., and the company has a philosophy of supporting sustainability and natural, locally grown food. Owners Patrick and Daniel Conway have plans to deepen Great Lakes' presence in existing markets as they celebrate its 25th anniversary in 2013.


Source: Great Lakes Brewing Company
Writer: Lee Chilcote
owner of thriving downtown real estate biz nabs realtor award
Scott Phillips Jr., president of Keller Williams Realty Greater Cleveland, has been named one of Realtor Magazine’s 30 Under 30. Each year the magazine recognizes 30 young practitioners who are making a mark in the real estate industry through success in real estate sales, business management, leadership, or community service.
 
Tapping into the renewed interest in downtown living, Phillips, 28, has grown a thriving real estate business out of an old factory in the Warehouse District focused on the urban market. Since 2009, Phillips has grown his office to 29 agents and employees with a capital budget of $1 million. In the past year alone he has added eight people to his team.
 
Phillips is the first Ohio agent to win the 30 Under 30 award in 12 years. He is Cleveland’s top producing realtor between 2009- 2011, and has sold over $50 million in homes in Cleveland during that period.

“The award is usually reserved for the East Coast and West Coast because those are areas where the purchase prices are typically higher,” explains Phillips.
 
Phillips spotted the market potential in downtown Cleveland after living in the city. “I promoted living in the area before I became a license agent,” he says. “It wasn’t as much about business as being passionate about it.”

 
Source: Scott Phillips, Jr.
Writer: Karin Connelly
flexible desk organizer takes off as portfolio project for three cia students
Last summer, Cleveland Institute of Art product design students Josh Dryden, Sam Li and Pete Whitworth were tossing around ideas for a project that they could add to their portfolios. What they came up with also turned into a lesson in business.
 
Using their design knowledge, the three decided to tackle the challenge of desk clutter. After some design sketches, 3-D modeling and prototypes, they came up with The Nesl, a nine-fingered, flexible-rubber desk organizer with suction cups that hold it where ever you stick it.
 
“The idea was you can really shove anything in it -- paper, pens, phones -- whatever you have on your desk,” says Dryden.
 
The trio developed the prototype in Cleveland, and then listed it on Kickstarter to get funding. They were successful. Birdhouse Studios raised well over the $30,000 pledge goal by the time the listing closed yesterday, making it possible to continue manufacturing the Nesl and delivering it to the hundreds of backers who pledged money.
 
“It’s been a huge learning experience,” says Dryden. “We’ve learned a lot about the manufacturing process, about shipping and holding products. If the Nesl takes off, we’ll have an online store and sell other products.” Dryden, Li and Whitworth graduated earlier this month.
 
Additionally, Nesl was chosen as a contender for the William McShane Fund contest. Twelve Kickstarter companies get a shot at $25,000 startup money from Buckyballs and a product launch at Brookstone stores. The winner is chosen through Facebook votes. Nesl made it through the first round of voting and is now one of six finalists. The winner will be announced on June 1.
 

Source: Josh Dryden
Writer: Karin Connelly
port authority to build new boats to help clean up river debris
Although the environmental health of the Cuyahoga River has dramatically improved in recent decades, ugly mats of hazardous floating debris and litter still accumulate in the bends of the famously crooked river.

If a violent storm rolls in off Lake Erie, or strong winds spring up, the mats can easily break apart and float into the shipping channel. The sudden presence of fallen logs and other debris can create a dangerous obstacle course for boaters and rowers traversing the river.

Later this summer, the Cleveland-Cuyahoga County Port Authority will begin using two specialized aluminum work boats to remove floating debris from the river and the Lake Erie shoreline. The new boats, called Flotsam and Jetsam, are being paid for by a $425,160 grant from the Great Lakes Restoration Initiative. The river cleanup initiative is the first comprehensive initiative of its kind.

"The river is a lot cleaner than it looks and now has 40 species of fish, but this program will demonstrate stewardship to the community," says Jim White, Director of Sustainable Infrastructure Programs for the Port Authority. "This is one of the pieces of the puzzle in terms of restoring the health of the river."


Source: Jim White
Writer: Lee Chilcote
goldman sachs chooses cleveland as next entrepreneurial center
Goldman Sachs announced last week that it will bring its 10,000 Small Businesses (10KSB) initiative to Cleveland. The initiative commits $500 million to entrepreneurial education, access to capital and technical assistance services. Goldman Sachs and the Goldman Sachs Foundation have pledged $15 million to Cleveland.
 
Cleveland is the seventh city to host a 10KSB. Unlike many organizations in Cleveland that focus on startups, this program is designed for existing small business owners who are ready to grow their companies and create jobs.
 
“We’re really excited about this because it fills a gap,” says Jumpstart CEO Ray Leach, who has been in talks with Goldman Sachs for nearly a year about bringing the initiative to Cleveland. “It puts a new focus on the segment of the market that includes existing low-tech, medium-tech and high-tech companies that have been in business for a while.”
 
Other local organizations involved are Tri-C, the Urban League, the Northeast Ohio Hispanic Chamber of Commerce and COSE.
 
Leach says Goldman Sachs saw Cleveland as primed for growth. “The entire ecosystem in Northeast Ohio is already pretty robust, so if they brought the program here it could generate jobs more quickly,” he explains. “The philanthropy will go further here than in an area less organized.”
 
Tri-C will host the 11-session course beginning in September. The course is intended to be a practical business management education program that helps entrepreneurs develop skills they need to grow a company. Selected participants receive a series of one-on-one business advising sessions from professionals to help develop a tailored plan for growth.
 
Business owners eligible to apply for the program generally have been in business for two years or more and typically have at least four employees and a revenue stream of $150,000 to $4 million per year. Applications for the free September session are being accepted through July 2. Future sessions will be offered on a quarterly basis.
 

Source: Ray Leach
Writer: Karin Connelly
entrepreneurs organization seeks to boost local companies to $1m mark
The Cleveland Entrepreneurs’ Organization is one of the oldest and strongest chapters of the worldwide organization. Comprised of 115 members who are founders of business with at least $1 million in annual gross revenues, the members network, socialize and share their success stories.
 
Now the EO wants to share its collective knowledge with other entrepreneurs through its Accelerator program. Started three years ago, the purpose of the program is to educate and mentor small businesses to help them grow. “EO Cleveland decided to step out and take companies that are under $1 million and grow them into million-dollar companies,” says EO member Gene Roberts. “The concept is, if we can accelerate them to the $1 million mark, we can make them members.”
 
Participants must have businesses that make at least $250,000 annually to participate in the three-year program. EO members speak about their experiences and provide one-on-one mentoring once a month for a year. Accountability groups meet to share their progress, and regular events are designed to share advice and success stories.
 
“Our EO members meet with Accelerator group members once a month and talk about responsibility, how to get focus to grow, and 10 goals for growth,” says Roberts.
 
The Accelerator graduated six members in 2011. Ideally, Roberts says they would like to host 30 entrepreneurs in each class.
 
Source: Gene Roberts
Writer: Karin Connelly