What is most unusual about Trailside at Morgana Run, a new development of 100-plus new homes in the Slavic Village neighborhood of Cleveland, is not simply that it is a rare example of speculative housing development in today’s morbid real estate market.

No, what seems even more unique is that Third Federal Bank, whose headquarters is located adjacent to the site, is actually the developer of the project. Typically, banks do not take an active role in development.

“Third Federal has historically been all about homeownership,” says Joe Del Re of Zaremba Homes, the urban homebuilder that has been hired to oversee construction. “What better statement could they possibly make to the community than to not only put their headquarters here, but also to build homes?”

Trailside features new, single-family homes that are priced from $135,000 to $150,000. The 2- to 3-bedroom units are highly energy-efficient and have access to green space filled with native plantings. Morgana Run, a trail that weaves through Slavic Village and connects to Mill Creek Reservation, runs by the site. 

Del Re says the project might appeal to young professionals as well as older homebuyers seeking to downsize from larger neighborhood homes. The units feature a first-floor bedroom option, yards and detached two-car garages.

Zaremba, Third Federal and Slavic Village Development worked together for more than five years to acquire and redevelop the project site, which was an environmentally contaminated brownfield until it was cleaned up a few years ago.

Del Re says that Third Federal is taking on the project because of its commitment to Slavic Village and because the site is literally located in its backyard.
 

Source: Joe Del Re
Writer: Lee Chilcote

According to Live Cleveland, there are over two dozen city neighborhoods. But which one is right for you? For urban pioneers, who hope to hit that sweet spot between value and convenience, the answer often is the "emerging neighborhood." Blessed with affordable property, short commutes, and multicultural diversity, these areas possess authentic appeal. And the one ripest for plucking is…

NorTech is accepting nominations for its 11th annual innovation awards, which highlight breakthrough technologies and innovations in Northeast Ohio.

“The innovation awards recognize those businesses and individuals and leaders who have created jobs and attracted capital to the region,” says NorTech president and CEO Rebecca Bagley. “The bottom line is recognizing companies that have had a positive economic impact.”
 
NorTech has held the competition since 2000, and this is the fourth year they have partnered with Crain’s Cleveland Business to identify businesses that have had both a positive economic impact and a social impact. “It’s pretty competitive,” says Bagley. “Last year we had 40 nominations.”
 
Entries are judged in one of five areas: advanced energy; advanced materials; biomedical, flexible electronics; and instrumentation, control and electronics. Within those areas, judges look at creativity, feasibility, collaboration and triple bottom line Impact -- social, economic and environmental.
 
Judges are selected from the wide geographic area that NorTech represents, and are leaders in a variety of industries, universities and economic development. “We try to mix it up,” says Bagley. “We make sure the judges are representative and a strong balance of people.”
 
The deadline for nominations is 1 p.m. on November 11. Individuals and businesses can nominate themselves. The nomination packet can be found on NorTech’s website.
 
“It’s important and exciting to be able to highlight all of the things that are happening here in the region,” says Bagley. “It gives people the sense of momentum as we go through an economic shift.”

 
Source: Rebecca Bagley
Writer: Karin Connelly

Luther Heggs has been a roadie, sound engineer and lighting technician for rock and roll bands from the juke joints of Nashville to the splashy clubs of Las Vegas. He also had stints as an on-air personality for local radio stations. Yet when his kids were born, he switched to wiring studios as his way of earning a living. Still, he often longed for the excitement and drama of the rock and roll shows of his younger years.

That's why he created the Heggs House of Horror. For 15 years, Heggs has transformed the yard of his Old Brooklyn bungalow into a delightful, homemade scare-fest that is a tribute both to rock and roll and the Halloweens of his youth.

"He loves to put on a show, and this became an outlet," says Luanne Bole-Becker, a local filmmaker and personal friend who is creating a documentary about the so-called Master of Scare-a-Monies. "He builds these characters in his yard from all kinds of stuff, whether it's oscillating fans or stuff he finds at garage sales."

The Heggs House of Horror began modestly with a paper mache witch and a giant spider web. Today, the entire yard, driveway and side yard of the house are filled with an artful, ghoulish display that attracts thousands of visitors from Northeast Ohio and beyond each year. Some of the characters include Gene Simmons of Kiss, Freddy Krueger and classics from Heggs' childhood such as Ghoulardi.

"It's become sort of like a block party with a Halloween twist," says Bole-Becker. "Other families get together at Christmas, but his family hangs out at Halloween. Now there are other people on the street decorating their houses, too."

Ultimately, Bole-Becker says that the Heggs House of Horror is not intended to compete with more commercial fare -- Heggs spends his own money on the display and doesn't charge admission. It's designed to bring people together.

"For baby boomers like me, it reminds us of the Halloween of my childhood, when the neighborhood became magical," says Bole-Becker. "It sort of feels that way. This really plain bungalow all of a sudden becomes this odd wonderland."


Source: Luanne Bole-Becker
Writer: Lee Chilcote

Anyone who has ever been in college knows the benefit of using a classmate’s notes to catch up on what’s going on in class or to study for a test. Dave Petruziello and Mike Matousek have created a way to share those notes -- and make some money at the same time.
 
FlashNotes came out of a class project Matousek was working on for business class while at Kent State University in 2009. The company is a virtual marketplace where students can buy and sell study materials -- notes, book notes, study guides, custom flash cards, and book summaries.
 
The two launched FlashNotes last spring at four universities in Ohio and Michigan and the site instantly went vital. “We’re like Amazon or eBay for class notes and study guides,” says CEO Petruziello. “We’ve had a lot of success with it.”
 
FlashNotes is now at 44 colleges and universities across the country. “We never did any promotion,” says Petruziello of the company’s success. “People just grabbed it and have taken it to new locations.”
 
Users sell their notes at $1.99 and higher, depending on content, difficulty of the class and length. FlashNotes takes a 20 percent commission on the sale, the seller keeps the rest. “We’ve had students make over $500 a week selling their notes,” says Petruziello. “We provide a service for students.”
 
Petruziello stresses the social networking aspect of the concept. “It’s not about whether you missed class, it’s just additional study materials,” he says, noting that they have added a feature where users can search for notes by ISBN number for specific textbooks being used by different classes.
 
FlashNotes is growing quickly. Petruziello and Matousek plan on opening additional offices in Boston and they are in the process of hiring a CTO. Additionally, they plan on bringing their web development team in-house and hiring student reps on campuses.

 
Source: Dave Petruziello
Writer: Karin Connelly

Concord Music Group, a major independent music label that employs nine marketing staff in Northeast Ohio, recently moved to new offices in Beachwood. The company's new address is right across the street from its old one, yet it offers a few much-needed amenities, including a custom-built mastering studio and extra suites to accommodate future growth.

"Building the studio was quite a mountain to climb, but the landlord was willing to work with us to do the build-out," says Jason Linder of Concord. "It had to be acoustically treated so that the engineer could be sure that what he was hearing was true, and it had to be soundproofed from our offices."

Concord Music Group first came to Cleveland in 2005 after it bought Telarc Records, a company that was founded locally in 1977 as a successful purveyor of jazz, classical, blues and world music. Concord has continued that tradition, and its Cleveland staff market these genres.

Although Concord's local presence has actually shrunk in recent years, Linder remains hopeful about the music industry's future. He says it has seen modest growth this year thanks to new marketing strategies that are reaching tech-savvy consumers and a smaller number of new releases. Concord's new office is a sign that the firm is committed to maintaining a presence in Cleveland.

"Cleveland does not have very many record labels, but it's a very active music town," he says. "If you enjoy live music, there are so many venues and types of shows."

Linder is looking forward to the upcoming Grammy Awards, where he expects Concord artists to snag a few wins. He knows they probably won't top last year, however, when jazz artist Esperanza Spalding won Best New Artist.

"It was a huge deal to have a jazz artist win the award," Linder says. "Especially when she was competing against Justin Bieber."


Source: Jason Linder
Writer: Lee Chilcote

Lisa Dunn is socially conscious with an artistic flair. As owner of Revive boutique in Cleveland Heights and Lyndhurst’s Legacy Village, Dunn showcases the works of artisans from around the world, all while making sure they earn a fair wage for their work.
 
The two stores carry eco-fashions for children, women and men, as well as products for the home. The handcrafted pieces hail from more than 30 countries and are made of various sustainable materials, such as organic cotton and hemp, vegetable dyes, recycled glass and magazines, shells and seeds.
 
“What’s unique about our boutique is that everything we sell is fair trade,” says Dunn. “And I design about 20 percent for what we sell.” While Dunn communicates regularly with her artisan groups via the internet, she also travels one to three times a year to visit the artists with whom she works. “It helps refresh and ground me in the mission of why we are doing this,” she says. “I really try to focus on the long-term relationships with the artisan groups we work with.”
 
Dunn just returned from Guatemala before the grand re-opening of the Legacy Village store in a new location and a speaking engagement at the Ohio Fair Trade Expo at John Carroll University last weekend.
 
In the five years she has been in business, Dunn has grown her business from one store with one employee (her, pulling 100-hour weeks) to two stores with nine employees.

“Every year we’ve grown,” she says. “And my employees are so committed and dedicated to the mission of fair trade.” Additionally, she hires four to six interns a year and plans to hire another one in November.

 
Source: Lisa Dunn
Writer: Karin Connelly

Steve Orlando wants to make cell phones free for all. He plans to do that through advertising. The CEO of Cell-A-Spot started the company in 2009 with the idea of selling ad space for cell phone apps and the concept has been growing ever since.
 
“We essentially are implementing advertisements in mobile phones,” Orlando says. “It started with a couple of ideas, but when we got our first customer we created our first app.”
 
Cell-a-Spot has created patent pending technology that couples a one-to-one interactive targeting for advertisers with the ability to generate revenue streams for mobile providers. Cell-A-Spot’s first app builds ads into a cell phone’s 411 service. Instead of paying for 411, the costs are offset by ads.
 
“Say you call 411 to search for pizza places... Ads for places like Pizza Hut will come up,” Orlando explains. “A lot of plans right now charge a fee to call 411. The way we built this app, it’s free.”
 
Orlando moved his business into Shaker LaunchHouse last April and has found the resources there to be invaluable in growing Cell-A-Spot. They became a LaunchHouse portfolio company about a month ago. “We’re lean, we’re small and we are able to keep our overhead really low,” he says. “Working in LaunchHouse, we get a lot of resources there.”
 
As Cell-A-Spot grows Orlando plans to build a full staff, from a sales team to accountants and administrative assistants. “My goal is to in three to four years have 12 employees,” he says. “But maybe we’ll get to 40 or 50 employees.”


Source: Steve Orlando
Writer: Karin Connelly

The I-X Center has launched plans to invest $25 to $30 million in renovations that will enhance its ability to host consumer mega-shows such as the Fabulous Food Show and International Beer Fest. Planned improvements include upgrading food and restroom facilities, adding a third lane to the main access road, and expanding the paved parking areas.

“Our goal is to grow attendance and become even more of a destination venue,” Robert Peterson, President of the I-X Center, said in a release. Peterson noted that the I-X Center has invested more than $75 million over the years.

The I-X Center, which was originally built as a B-29 Bomber plant and later became a tank plant, has become increasingly active in producing its own shows. One example is the Food Show, which draws visitors from as far as New York and Florida to see nationally renowned chefs, including Cleveland's own Michael Symon.

Other successful new shows include the International Beer Fest, Trick or Treat Street, and the Great Big Home and Garden Expo, which returns in February.

The construction of the Medical Mart and Convention Center in downtown Cleveland will only add to the region's ability to draw visitors and generate exciting events, Peterson said. The two facilities serve different market niches.

The I-X Center is one of the largest trade show and exhibition centers in the country, and employs nearly 1,000 people for its shows and events.


Source: Robert Peterson
Writer: Lee Chilcote

Urban Community School recently announced it has received a $5 million pledge from an anonymous donor. That pledge, the largest in the school's history, will allow the well-regarded institution to expand by one-third and serve an additional 150 children.

"This gift will help us to continue to provide quality education to kids that don't otherwise have access to it," says Sister Maureen Doyle, Director of Urban Community School, which is located in Ohio City and serves mostly low-income students who live in the immediate area. "We're focused on the children who need us most."

Urban plans to construct a two-story addition off W. 50th Street, in the rear of the school's campus. Doyle says the new classroom space, which will add a state-of-the-art middle school that will complement the existing building completed in 2005, will "meet the needs of city kids for the 21st century."

"We're redesigning not only the facility but also the program to meet the needs of our students," explains Doyle. "We're looking at things like writing and science labs, meeting space, expandable walls and state-of-the-art technology. We want to make sure what we're providing kids helps them to be successful in high school."

Other options under consideration include extending the school day for middle school students, creating a leadership program to involve them in the community, and promoting shared teaching responsibilities to ensure an integrated curriculum.

Fortunately, Urban need not develop new designs for the facility since it had planned the expansion when it originally broke ground on the existing building.

Although Urban does not have a specific timeline for its expansion plans, Doyle expects the school to complete the project within the next three years.


Source: Sister Maureen Doyle
Writer: Lee Chilcote

Jacobs Entertainment is pumping $70 million into the world-class Greater Cleveland Aquarium, which is set to open early next year and draw upwards of 480,000 annual visitors. The watery attraction will employ 40 people while generating an economic impact of roughly $27 million per year. But since this is Cleveland, where everything unfolds with a twist, the new aquarium will be housed in a very old building.

More than 100 people attended the Flats Forward Waterfront Summit, held this week in downtown Cleveland. Those in attendance learned how cities as far away as Duisburg, Germany, and as close as Pittsburgh, have leveraged their historic waterfronts into magnets for recreation, investment and tourism.

Flats Forward is a one-year-old effort to create a new identity for Cleveland's historic birthplace. Planners are now focused on improving the Flats' infrastructure, transportation linkages and recreational amenities, as well as fostering a better balance between residential, industrial and recreational uses. Additionally, civic leaders hope to leverage $2 billion worth of investment taking place within one mile of the Flats to spur more development.

Following a rousing speech by Councilman Joe Cimperman that likened the Cuyahoga River's rebirth after the infamous fire of 1969 to an ecosystem's resilience following a forest blaze, leaders from Germany, England, Italy and Pennsylvania talked about their successes and the lessons they've learned along the way.

Tony Harvey of British Waterways in Birmingham, England, said that his organization has helped leverage $1 billion of investment in the region's waterway network, which dates back to the Roman era. Those waterways now attract more than 13 million visitors and 35,000 licensed boats per year.

Arne Lorz of Duisburg, Germany, described how her city rebuilt itself during an era of industrial decline by focusing on its crumbling inner harbor and building new homes, a marina, offices, retail and museums.

Roberto Bobbio, Professor of Urban Planning and Landscape Preservation at the University of Genoa, Italy, discussed how his dense Mediterranean city invested in a state-of-the-art aquarium that now is the third most visited spot in Italy.

Finally, Lisa Schroeder of Pittsburgh RiverLife Task Force told the audience that her city successfully has reinvented its industrial, long-empty waterfront into a well-connected civic space. Today, more than 15,000 kayaks are rented each year from under a bridge, and "boat-gating," she added, has replaced "tailgating."

Schroeder also offered a concise analysis of what doubtless was on the minds of many participants: "If you can use private funding to help put redevelopment plans together," she advised, "then it's easier to get politicians to fight for the public infrastructure spending that makes reinvestment possible."


Source: Flats Forward Waterfront Summit
Writer: Lee Chilcote

Vintage maven Cindy Deering has opened a new store that brings her eclectic array of '60s and '70s clothing and accessories to a long-empty storefront on W. 25th Street in Ohio City.

Deering Vintage, which features hardwood floors, marble countertop from its days as a flower shop, and a mezzanine for the in-house seamstress, plugs one of the few remaining retail gaps on the street. Just one year ago, the Gillespie building at Bridge and W. 25th was half-dark. Today, it is filled with a bike shop, Mexican restaurant, custom baseball bat fabricator and, now, vintage shop.

Deering, who hopes to grow roots in her current location -- describing it as her "latest and last" -- reports strong foot traffic since she opened last week. "Ever since people heard that Mitchell's was opening across the street, there's been a positive buzz around here," she says.

Her success stems in part from the fact that vintage has done well in this sour economy, drawing younger and older patrons who prefer to wear gently-used clothing. "We're kind of like the original 'green' of shopping," Deering says.

Despite the popularity of online shopping, Deering says vintage stores are still a draw. "I tried sitting in my house and selling on eBay, but I like being with people," she says. "All of our stuff is one of a kind and very personal."

Now that she's in her new location, Deering says that her loyal customers are seeking her out. "I have some longtime customers whose kids practically grew up with me, and now those kids are adults that shop at my store," she says.

Some of her recent visitors include other Ohio City business owners, who seem happy for her to join the retail mix.

"Some of my neighbors brought a bottle of wine over," she says. "The street has been very welcoming."


Source: Cindy Deering
Writer: Lee Chilcote

Jeremy Flack, a steel industry entrepreneur who started his own steel distribution company last year, likes to brag that Flack Steel is the first new steel company to locate in downtown Cleveland in quite a while. Not only did he choose the Warehouse District to locate his fledgling company, he's also a downtown resident.

"People ask, 'Does anyone still make steel in Cleveland?'" Flack says. "The answer is Yes! In fact, the decline of manufacturing jobs in industrial America is really a bit of a fallacy. Right now, there is a trend of 're-shoring' taking place."

Flack Steel doesn't actually make steel or own steel warehouses. Rather, the company uses third-party and contract warehouses to distribute to locations across the U.S., a model that allows it to be flexible and sell to facilities anywhere.

"Using the old model, we had to find a suppler in each market," Flack says. "This model allows us to provide a point of sale when others can't."

Now the one-year-old company, which is headquartered at W. 6th and Lakeside, is going through a growth spurt. Flack just hired a new sales force and is preparing for additional growth. He now employs 16 full-time staffers.

Part of what has made the company successful is the company's investment in technology. "The industry has been woefully behind in understanding technology, and people want information," Flack explains. "We've designed a website that allows people to see the price of steel -- our customers want transparency."

Flack is hoping that he can update Cleveland's reputation as a cradle of old-school manufacturing. He wants it to become known instead as a hub for manufacturing innovation. "There's an opportunity for cities like Cleveland to take advantage of trends and rebuild our manufacturing base using new technologies," he says.


Source: Jeremy Flack
Writer: Lee Chilcote

The building boom kicking up dust in downtown Cleveland soon will give visitors to the Medical Mart, Convention Center and Horseshoe Casino another spot to lay their heads after a night out on the town. Optima Ventures and Sage Hospitality have purchased the former Crowne Plaza Cleveland City Centre hotel and plan to spend $64 million to renovate it into a new, luxurious 481-room Westin Hotel.

The project was spurred by an anticipated influx of visitors to downtown Cleveland, the developer said in a press release. "This is the perfect time for a four-star luxury hotel to be entering the downtown Cleveland market, and we expect to see strong occupancy from both business and leisure travelers," said Ken Geist, Executive Vice President and Partner at Sage Hospitality.

The developers plan to remodel all of the hotel rooms, meeting spaces and public spaces and add energy-efficient windows, a new roof and other exterior improvements. When the new Westin opens in July 2013, it will feature a high-end restaurant with outdoor dining space, a business center, fitness center and a spa. The hotel is expected to employ between 300 and 350 individuals.

The Cleveland International Fund, which operates a federal Eb-5 zone that permits wealthy foreign investors to expedite obtaining U.S. visas if they invest at least $500k in a project that creates jobs, has committed $36 million to the project. The Fund, which was also a critical force in the Flats East Bank project, is becoming an increasingly visible player in urban redevelopment.

The project will also likely be funded by a tax increment financing agreement with the City of Cleveland and the Cleveland-Cuyahoga Port Authority, as well as the sale of bonds. Both are still in the works and have not yet been finalized.

The developers plan to shut down the Crowne Plaza hotel in November to start construction.


Source: Sage Hospitality
Writer: Lee Chilcote

SironRX Therapeutics, which spun out of Juventas Therapeutics and the Cleveland Clinic almost a year ago, is finding marked success in healing wounds. The company received $1 million in Third Frontier funding to continue clinical trials in wound healing.
 
“What we observed at Juventas in treatments for heart disease, we have observed in wound treatment with the same product,” explains Rahul Aras, SironRX president and CEO. “With SRX100, we accelerate treatment in dermal wounds and prevent scarring. While normal healing occurs in about 21 days, healing occurred 20 to 30 percent faster with significantly less scarring with our product.”
 
The product will be used in post-surgical incisions, chronic diabetic ulcers and burns. SironRX’s goal is to develop a cost-effective interactive wound therapy that can be topically administered with the potential to significantly improve function of the damaged tissue.
 
“It’s a great concept, applying concepts that make the body heal,” Aras says. “Repairing injured organs to heal themselves, I think that’s pretty exciting.”
 
As clinical trials continue, SironRX will be ramping up a full-time management teams, including a full-time CEO, and operational staff.

 
Source: Rahul Aras
Writer: Karin Connelly