Two local student-led teams, NanoHarv Technologies and Amplified Wind solutions, have made it to the semifinals of the Clean Energy Trust’s Clean Energy Challenge.
 
NanoHarv Technologies, a group of graduate students in CWRU’s Science & Technology Entrepreneurship Program (STEP), investigates new techniques that could potentially deliver cost efficient methods for the production of algae biofuels and other valuable by-products.
 
Amplified Wind Solutions is a group of CSU students and professors who have developed a wind speed amplification system that, when installed on a cylindrical structure such as a silo or water tower, can provide three times the electricity production of a typical wind turbine in low or marginal wind areas.
 
“The quality of the applications was fantastic,” says Amy Francetic, executive director of the Clean Energy Trust. “We had over 100 applications.” Only 16 teams were chosen to move on to the finals and present their business plans in Chicago on February 29 and March 1.
 
“This is a great opportunity for us to gain insight into the challenges of business plan development and new venture creation,” says Justin Isaacs, co-founder of NanoHarv. The winners in Chicago will go on to the national competition in Washington, DC, this summer to compete for $150,000.

While Niki Zmij, CEO of Amplified Wind Solutions, would like the prize money to help bring her company to commercialization, she is also happy in the lessons she’s learning.
 
“Whether we win or not this competition has been an incredible lesson in entrepreneurship,” says Zmij. “I’m a firm believer that we all learn best by doing -- and this process has allowed me to gain a very clear picture of what it takes to develop a new technology, start up a company, and put forth the dedication and hard work that it takes to make it successful.”

 
Source: Amy Francetic, Justin Isaacs, Niki Zmij
Writer: Karin Connelly

Ian Wong, a medical student at CWRU, found through his studies that there was a real need for access to fresh, quality food in Cleveland’s high-density areas. His theory: If people have fresh produce, nutrition is second nature. So he and co-founder Max Wilberding started Freshbag, a grocery delivery service that debuted in 2010.
 
“The company was essentially started to improve wellness in Cleveland through nutrition,” Wong says. “Our point is if we make it so easy, you have no excuse not to do it. You can live healthier.”
 
The emphasis is on fresh. The food comes from distributors and Wong keeps a close eye on quality. “I never had fresh rye bread or fresh pasta before Freshbag,” he says. “Now I can’t go back.”
 
Customers order their food -- mostly a selection of fruits and vegetables -- through the Freshbag website. They can then pick up their groceries at one of Freshbag’s six pickup locations, primarily the front desks of apartment complexes, businesses or university campuses.
 
Wong is currently asking customers for input on where they should add additional pick-up locations. “All a company has to do is okay us to make deliveries to the front desk,” says Wong.
 
The Freshbag business model is based on an automated ordering system where customers can order exactly what they want with just-in-time ordering. Orders arrive at the pick-up location the next day after an order is placed.
 
Freshbag also is focusing on corporate wellness programs, working with nutritionists and chefs to teach their customers how to eat healthy and cook tasty food.
 
Wong and his partners have dreams to expand. “Hiring will be based on how rapidly we grow,” he says.

 
Source: Ian Wong
Writer: Karin Connelly

Bad Girl Ventures, a micro-finance organization focused on educating and financing women-owned startup companies, graduated its first Cleveland class on January 3 and announced the winner of a $25,000 low interest loan. Out of 70 applicants, 10 start-up companies  participated in an eight-week program to learn the ins and outs of successfully running a business.
 
Kimberly McCune Gibson and Ann Marie Larrance of Grass Roots LLC, the parent company for ReHive Ale, The 1815 House, and Hungry Bee Catering won the grand prize. Three other prizes were awarded. The Business of Good foundation awarded a $1,000 grant to Michael's Mobile Oil, and the City of Cleveland gave two $1,000 grants to The Brunch Project and Tonja's Tranquility Inn.
 
Of Gibson and Larrance, Candace Klein, Bad Girl Ventures founder and CEO says, “These women have the biggest fire in the belly that I’ve seen. It was a very close vote, but I haven’t seen two people who work harder ever.”
 
About 150 people came to the graduation event, which was held at Rosetta in Cleveland. Food Network filmed the event because Gibson and Larrance are also participating in a reality show for the network. “It was great coverage,” Klein says.
 
Bad Girl Ventures has educated more than 250 business owners in Cleveland and Cincinnati and funded 24 companies with $650,000. Klein is now accepting applications for spring classes in Cleveland.

 
Source: Candace Klein
Writer: Karin Connelly

PlayhouseSquare's latest string of successes may be a tough act to follow, but a Cleveland real estate developer is willing to try. A newly-consummated deal to convert a prominent office building into 102 apartments will fuel the growth of this arts-rich neighborhood, which in recent years has also welcomed two major theater renovations and new restaurants.

K&D Group, the largest privately-held owner of apartments in Northeast Ohio, has inked a deal with the nonprofit PlayhouseSquare to buy the Hanna Building Annex, which is located at the corner of Prospect Avenue and E. 14th Street. The developer plans to convert it into 1- and 2-bedroom, 600 to 1,200-square-foot apartments that will lease from $725 to $1,500 per month.

PlayhouseSquare plans to relocate existing tenants into the Hanna Building next door. The deal includes leasing back ground-level retail space to PlayhouseSquare. The nonprofit development corporation hopes to fill the space with much-needed amenities such as a dry cleaner, wine shop, small market or pharmacy -- in short, the kinds of services that serve a residential neighborhood.

Art Falco, CEO of PlayhouseSquare, says the project is critical to the future of the neighborhood. “This will allow us to continue to brand PlayhouseSquare as not only an entertainment area but also a residential neighborhood," he says.


Source: Art Falco
Writer: Lee Chilcote

A weekend project to build a hoop house turned into a thriving business for three local entrepreneurs. Carlton Jackson, Todd Alexander and Michael Walton were all at a Sustainable Cleveland 2019 meeting in 2009. Walton needed help erecting a hoop house on his urban farm, Jackson and Alexander came to help, and they all ended up with a business idea.
 
“It took seven to 10 days to build instead of the weekend,” recalls Jackson. The three started talking and figured they could do better. They came up with a design for a better tunnel hoop house and have been building ever since.  
 
Tunnel Vision Hoops designs, manufactures and installs high tunnel hoop houses for everyone from the backyard gardener to working farms. Hoop houses extend the growing season by keeping out harsh elements like wind and sleet while trapping the heat from solar radiation.

Jackson’s hope is to expand Northeast Ohio’s 135-day growing season and use of the 3,500 acres of vacant land in Cleveland for growing food and thus creating jobs. His hoops are comprised of galvanized steel arches covered with UV-protected, condensation-control polyethylene plastic
 
“We innovated and came up with our own designs and install them,” says Jackson. “We had no intention of actually starting a company. We thought we’d just make a few bucks. We each paid $7, went to Home Depot and made a scale model.”
 
Their model was a success and TVH’s first client was CWRU’s Squire Vallevue Farm. Today, the company has put nearly 20,000 square feet under cover in four counties. “You know you have a good product when someone’s willing to spend their own money,” says Jackson.
 
TVH has plans to expand by 2013, hiring trained installers or landscapers to erect the hoops as well as summer interns. Jackson also has plans to expand their product line and to build hoops for disaster relief efforts.

 
Source: Carlton Jackson
Writer: Karin Connelly

To tap into demand for affordable yet professional office space from local start-up businesses, two local entrepreneurs have kicked off 2012 by opening a new shared workspace, Cowork CLE, in a decommissioned Ohio City firehouse.

“Meeting clients at Starbucks can get old; we offer a more professional setting,” says Emmett McDermott, who has partnered with Graham Veysey of North Water Partners, a video production company, to launch the 1,000-square-foot space on W. 29th Street. McDermott also owns 12five9, a web development firm.

Their pitch goes something like this: Are you a solo entrepreneur? Are you tired of working from home or fighting for an outlet at your local coffeehouse? Renting a desk at Cowork CLE can be as little as $250 per month. There's an airy, light-filled room with refinished hardwood floors, high-speed wireless, live Twitter feed on a flat-screen TV, conference room and even a private phone booth.

McDermott and Veysey visited similar coworking spaces in other cities, including Chicago, before they decided to launch Cowork CLE. “This is something that’s become popular in bigger cities,” says McDermott. “We chose Ohio City because it is an artisan neighborhood. We believe our clients are creative, independent artisans who are yearning for a collaborative environment."

The owners of Cowork CLE hope that the space will function as a kind of entrepreneurial incubator. By developing relationships in a shared work environment, their customers will be able to share useful information, help each other grow and eventually even refer business to one another, they say.

“We’re hoping people will make connections,” says McDermott.
Veysey, who owns the firehouse building, has also leased space to Rising Star Coffee Roasters, which will open Cleveland’s first “brewbar.” Rising Star will offer bags of beans for sale and also brew coffee by the cup. This will offer entrepreneurs here the best of both worlds -- a functional work environment and a downstairs coffee shop where they can easily get their caffeine fix.

Cowork CLE is located at 1455 W. 29th Street.


Sources: Emmett McDermott, Graham Veysey
Writer: Lee Chilcote

At the end of last year, Indian-born entrepreneur Radhika Reddy launched Ariel International Center, a one-stop shop for international business development in Northeast Ohio. Located in the former Leff Electric Company building on E. 40th Street, the 100-year-old warehouse with solid brickwork and rough-hewn wooden beams is being refurbished to support this decidedly 21st century venture.

“We offer shared international services for companies that want to locate here and do business globally, and we also help local companies with global potential,” says Reddy, who arrived in Cleveland 21 years ago with little more than a visa and $20 in her pocket, yet has since adopted Northeast Ohio as her home.

The successful businesswoman is one of three women behind Ariel Ventures, an economic development finance firm with $1.5 million in annual sales. Reddy says she wants to grow Cleveland's economy by helping businesses to gain global reach.

“We want to help them with business growth and act as their back office,” she says. “Services that we offer include accounting and finance, international business development, tax advising and export and import documentation.”

Ariel International Center, whose new, four-story home has large windows offering views of downtown and Lake Erie, will also host a fourth floor event space that is geared towards Cleveland’s immigrant community. Once renovations are complete, Reddy also hopes to land an international-themed restaurant that will become a destination spot for the downtown lunch crowd.

“Entrepreneurs like me are always thinking of what’s not there,” she says.

The project received support from the City of Cleveland’s Vacant Properties Initiative as well as a low-interest economic development loan from the city. Reddy says that it is approximately 50 percent self-financed by Ariel’s partners. The 100 percent women-owned firm will move its offices here by February 1st.


Source: Radhika Reddy
Writer: Lee Chilcote

Good news and bad news: The bad news is that Fresh Water will be taking a break from publishing next week (and some might argue this week, too). The good news is that not only will we be back the first week of January, but that our publication is growing. Thanks to a successful first year, Fresh Water will be adding two new content sections in the coming weeks. Stay tuned to this station.  In the meantime, have a fun, safe, and special holiday season filled with family, friends, food and fuzzy pets.
 
Cheers!
 
Fresh Water Staff

Tom Gillespie enjoys riding his motorcycle and he loves outdoor activities like golfing and camping. The problem he had was how to transport his gear while on his bike. When he couldn’t find anything that solved his problem, the environmental consultant took things into his own hands and invented The Travel Tube, a hard plastic case that holds golf clubs, fishing gear, firearms and any number of objects. The portable case attaches to a motorcycle or just about any vehicle. 

“I kind of had it rumbling around in my head for a while,” Gillespie says of the concept. “I couldn’t find anything like it. So I wrote a patent and took my rudimentary drawings to a manufacturer. After I had the prototype for the Travel Tube I put my golf clubs in it, put it on the back of my motorcycle and rode to Chicago.”
 
The Travel Tube is lightweight -- only about seven pounds -- is water-resistant, and its hard shell allows it to be checked on airplanes or shipped through the mail. Gillespie took his prototype to COSE’s Cleveland Shark Tank Pitch Contest -- and won. He is now in full production, filling orders for 50 units, each selling for $99. He also is working on a variety of accessories.
 
Gillespie has a storefront in Ohio City. As he ramps up production and sales, he plans on hiring some salespeople and at least one person to manage the phones.

 
Source: Tom Gillespie
Writer: Karin Connelly

Despite its long-suffering reputation, Cleveland's real estate market seems just fine to Kosta Almiroudis, an entrepreneur who moved last year from New York City to Lakewood to revive dilapidated old apartment buildings for fun and profit. In the past year, he has bought, renovated and fully leased more than 50 once-vacant units.

"I come from a village in Greece that has a 1,300-year-old castle," says Almiroudis, whose wife's family also lives in the Cleveland area. "So I love acquiring these 100-year-old buildings and bringing them back to life."

The first project that Almiroudis tackled is a 45-unit apartment building situated on Detroit Avenue across from the former Phantasy Concert Club. When he first began visiting his wife's family in Cleveland, he was surprised to learn how affordable real estate prices were. "I sold a single-family home in Greece and had a down payment for a 45-unit apartment building," he says with a laugh.

Since then, he has bought and fixed up another 12-unit building and signed a contract for an additional 11-unit building next door. All of his properties are 100-percent leased. He says the key to being a successful landlord is purchasing distressed properties for no more than 60 percent of their current value, investing up to 85 percent of their post-rehab value and overseeing the work yourself.

Even so, getting a loan was no walk in the park. Lenders are still skittish because they're carrying bad loans from investors who got in over their heads during the boom years. Still, the only way out of the current housing mess and the surfeit of vacant, multi-family buildings is through lending to good investors, he says.

"I don't see many people doing what I'm doing now, most likely because the banks are not releasing funds for these kinds of projects," he says. "They have the money. The only way to put this neighborhood back together is with banks releasing funds. Private investors want to put money back into real estate."

Almouridis, who was weaned on interior renovation projects for the likes of Donald Trump while starting out in New  York, isn't holding his breath for an avalanche of easy money, however. Instead, he's partnering with a private investor who sees apartments as a safe bet at a time of low homeownership, high apartment occupancy and wild, tough-to-fathom stock market swings. Together, the pair intend to purchase and rehabilitate additional apartments in Lakewood.

The value-laden properties are plentiful, he says, in part because the professional children of Lakewood's middle-class landlords seem to want nothing to do with rentals. "I think maybe it skips a generation," he says with another laugh.


Source: Kosta Almouridis
Writer: Lee Chilcote

This month, the Ohio Department of Development, in collaboration with the Ohio Department of Taxation, launched InvestOhio. The $100 million tax credit program helps small businesses get the funds from investors they need to grow, succeed, and create jobs.
 
“We were hearing from small businesses here in Ohio that they were having trouble getting access to capital,” explains Matt Sutherland, senior tax incentive specialist with the Ohio Department of Development. “The program creates incentive for investors to invest in small business.”
 
Through InvestOhio, investors can invest up to $10 million in eligible small businesses in exchange for a 10 percent income tax credit for investments held for two years. Eligible small businesses must have less than $50 million in assets or less than $10 million in annual sales.
 
There are 900,000 small businesses in the state. Investment in small business through this program is expected to generate $1 billion in new private investments in small businesses by 2013.

“There are a lot of small businesses waiting to take off, and we’re happy InvestOhio is the catalyst to move forward,” says Sutherland. “If every small business added even a moderate number of jobs it would be a significant impact on Ohio’s economy.”

 
Source: Matt Sutherland
Writer: Karin Connelly

The City of Cleveland, Neighborhood Progress Inc. (NPI) and ParkWorks recently launched ReImagining Cleveland II, a $1 million push to fund sideyard expansions, vacant lot beautification, and market gardens in Cleveland. They hope the program will improve vacant land, enhance local communities and further green the city.

"In a city like Cleveland, rebuilding the housing market really means taking down bad houses and reclaiming vacant land," says Bobbi Reichtell, Senior Program Officer with NPI. "We're focusing the sideyard expansions in areas where there are already a number of other things happening, such as Model Block programs and the Opportunity Homes rehab program, so that we can get a real impact."

Reichtell anticipates two-thirds of the funding will go to yard expansions, while one-third will go to stabilization projects like market gardens, wildflower gardens and vineyards. Over 50 applicants have already applied for sideyard expansions, while 16 stabilization sites have been identified. Funding will be used to clean, grade and fence properties before they are transferred to their new owners.

Reichtell also stressed that the city has a formal application process, and that it retains sites with critical short-term development potential. Owners with code violations or tax delinquencies cannot be accepted into the program. Applicants must also invest some of their funds to acquire a lot or create a project.

Lilah Zautner, Sustainability Manager with NPI, says the reaction to the program differs radically depending upon the individual and where they live. "Some view sideyard expansion as the suburbanization of the city, while others view it as homesteading -- they're adding gardens, pools, gazebos and more."

Since the program launched, there's been no shortage of applicants. "We've had an overwhelming response so far, but we are still accepting applications," she says.


Source: Bobbi Reichtell, Lilah Zautner
Writer: Lee Chilcote