Entrepreneurs + Innovators

zuga medical receives fda approval, jumpstart investment for dental implant system
Zuga Medical, a medical device company, recently received a $250,000 investment from JumpStart to launch its dental implant system. In April Zuga received FDA approval for its system, which allows a general dentist to perform implants using a screw, a procedure previously done only by oral surgeons.
 
“Our patent-pending technology makes it simpler, easier and more cost-effective for both the dentist and the patient,” says Zuga CEO Steve Cornelius, who met the company’s founder and CSO, Chan Wang, a year-and-a-half ago through BioEnterprise and joined the board of directors. He then became CEO. With 15 years of experience in the dental industry, Cornelius was intrigued with Wang’s product. “Chan had a vision of making things simple for general dentistry.”
 
Zuga will use the JumpStart investment to conduct a soft launch with eight to nine local dentists. Those dentists will take a training course on placing the implants next month. “We’re using the local soft launch in Cleveland to prove out our business model and raise the next round of investments,” Cornelius says. “Our vision is to create a dental company right here in Cleveland.”
 
As Zuga grows, Cornelius hopes to hire three to four sales reps, a marketing person and a customer service rep by the end of the year.
 
Zuga Medical has also received investments from the Cuyahoga County North Coast Opportunities Fund and the Innovation Fund.

 
Source: Steve Cornelius
Writer: Karin Connelly
we live here now: helen qin and jesse mason, owners of mason's creamery
Meet Helen Qin and Jesse Mason, a couple whose love for each other is rivaled only by their love of ice cream. After swapping the West Coast for the North Coast, the two launched Mason's Creamery, an ice cream start-up. Since moving to town, they have found Cleveland to be a city that not only loves ice cream, but that supports small business.
guide to kulchur opens in gordon square to promote local, national zine scene
Rafeeq Washington and Lyz Bly opened Guide to Kulchur in the Gordon Square Arts District with a distinctly anachronistic mission: The store is an homage to print, from stapled zines to books.

Somewhat improbably, the new store flourishes next to an independent record store and the three-screen independent Capitol Theater. But don't call it a throwback. The couple intends to not only sell hard-to-find books and older zines, but also to serve as a center for independent bookmaking culture.

"We want to be a place for things that are happening right now," says Washington. "We'll collect zines and let young scholars know before they get into the archives."

A zine is a self-published work of original or appropriated text and images. Usually reproduced by a photocopier and stapled together, they have a circulation under 1,000. Some zines even rose to national prominence in the 1990s. Although the Internet has changed zine culture, Washington says that it's still going strong.

"We view the bookstore as a way to provide texts we don't always see," he says. "People are throwing out zines because of the Internet, but it's not true that no one reads them anymore. One of our main thrusts is to have them all together."

In addition to everything from Foucalt to trashy mystery novels, Guide to Kulchur will offer a zine archive and co-op for makers. Beginning July 1st, anyone can schedule a time to use the desktop letterpress, copier or mimeograph.

"They can make them here, get them printed, bring them back and put them in the archive," Washington says, who collects zines as far back as 1981.

Washington and Bly saw the storefront while driving one day and knew it had to be theirs. "It was a no-brainer. We knew this was it -- right next to the theater."


Source: Rafeeq Washington
Writer: Lee Chilcote
next city leaders ask if cle, other cities can diversify beyond the 'cupcake economy'
Young urbanist leaders who were in Cleveland this week for Next City's annual Vanguard conference were asked a provocative question about this city's future. With new development activity happening in neighborhoods across a city that still is devastatingly poor, how can we do a better job of ensuring that these projects will benefit our poorest residents?

"I'm a little concerned that as we build projects, we're creating a city for yuppies and a city for everyone else," commented Ari Maron of MRN Ltd. in a presentation to 40 leaders from across the U.S. and Canada engaged in fields such as urban planning, entrepreneurship and sustainability. "How many cupcake and yogurt shops can a city sustain?"

Heads nodded and attendees laughed as Maron admitted the challenge was as much to himself as others, since MRN owns three of the city's most prominent new developments, E. Fourth Street in downtown Cleveland, Uptown in University Circle and property along W. 25th in Ohio City.

Several attendees noted that they were surprised by how few of the city's larger developments have translated into prosperity for surrounding neighborhoods. Sitting in the newly-built Museum of Contemporary Art at University Circle, leaders asked how that area's success could benefit its low-income neighbors.

Maron cited the Greater University Circle Initiative and local hiring and procuring efforts by University Hospitals and others. MRN has committed to hiring local residents for its projects, and the company now employs 285 city residents.

"When people from the neighborhood work here, they take ownership of the project because it's their neighborhood," he said, citing DoubleTree Hotel as one example of a University Circle project that employees many local residents.

An attendee from Chicago noted that Cleveland appears to be behind in adding bike-friendly infrastructure. He cited the recent addition of separated bicycle lanes to Surmac Avenue in Chicago as a game-changing project for his city. "Cleveland needs to do one really good pilot project," said the attendee.

Next City is a national nonprofit media organization that organizes the Vanguard conference to highlight best urban practices and develop young urban leaders. Updates from the conference are being posted on Next City's daily blog.


Source: Next City, Ari Maron
Writer: Lee Chilcote
toledo-based pub 'bar 145' on track to open ohio city spot by early 2014
Bar 145, a popular gastropub with locations in Toledo, Kent and soon Columbus, will open its fourth location in the former Grind space on W. 25th Street south of Lorain in Ohio City. The tagline "burgers, bands and bourbon" sums up the pub's concept.

Owner Jeremy Fitzgerald has signed a letter of intent with owner MRN Ltd. and intends to execute a lease and start construction this summer. Bar 145, specializing in chef-driven, foodie fare accented by regular live music, could open sometime early next year.

"Ohio City is so into the food end, but there's not much on the entertainment end," says Fitzgerald. "We make everything from scratch and knew the food concept was perfect. We knew that this would add another dimension to Ohio City."

The 4,100-square-foot venue will feature a full stage with lighting and a professional sound system. The bands will be local as well as regional.

Bar 145 also will have a 2,000-square-foot rooftop patio facing the downtown skyline and another 1,000-square-foot patio on the main level along the side of the building.

Live bands will be featured Thursdays, Fridays and Saturdays, but Fitzgerald promises five days of entertainment that will include jazz nights and acoustic talent.

Bar 145's menu promises to be in keeping with the neighborhood's local food ethos. "We don't even have a freezer in the restaurant," Fitzgerald says. "All our sauces are from scratch and the mac and cheese and truffle fries are all made to order."


Source: Jeremy Fitzgerald
Writer: Lee Chilcote
bad girl venture grad makes a splash with toast in gordon square
Jillian Davis’ Toast wine bar opened in the Gordon Square Arts District April 15 and her unique take on food, wine and cocktails fits right into the neighborhood. The restaurant/wine bar specializes in doing things a little differently.

“We serve revitalized farm fare, and most of what we serve is locally sourced,” says Davis. “We have wines that are off the beaten path and craft cocktails.” In fact, Toast makes their own tonics for their cocktails, grows some food ingredients on-site and all dinners are served up in small plate fashion. “People like to graze a little more these days,” Davis says.
 
While it took Davis a little while to open Toast’s doors, things are thriving now that she went through the Bad Girl Ventures business plan program and, thanks to the BGV program, won an ECDI loan. “The BGV program was great, I learned a lot,” says Davis. “ECDI was someone BGV put forth as an alternative to the banks. It worked out really well for me. I got money for inventory and equipment. No one will give you money for that stuff.”
 
Davis has hired 10 employees, including chefs, servers and bartenders and hopes to add more staff as Toast grows. “Our chefs are really slaves to the kitchen at this point,” she says. “As we start spreading the word and getting people in the door, we’ll be getting more staff.”
 
Toast has fit right into the neighborhood culture as well. Davis calls Toast’s wine list a bit more “geeky” than other area places, and they are the only restaurant in the area serving small plates.
 
“We all really complement each other; there’s a great synergy in the area,” says Davis. “Our wine selection sets us apart. We’re different than everybody, but we fit in."

 
Source: Jillian Davis
Writer: Karin Connelly
open pitch allows startups to hone their delivery on the hardwood
Fifteen early stage business owners will have a chance to pitch their companies on the Cavs’ practice court tonight, Thursday, June 13, at Open Pitch Night. The free event, sponsored by Bizdom, The Incubator at MAGNET, Herman Miller and APG Office Furnishings, is designed to let owners of young companies perfect their pitches in front of a live audience.
 
“It’s an opportunity for them to get up in front of a group and practice their pitches, get some quick feedback from a bunch of folks and improve their delivery,” says Bizdom leader Paul Allen.
 
The 15 entrepreneurs were selected out of a group of 20 applicants. “We were looking for a diverse range of ideas and markets,” says Allen. “It’s a nice mix of people at different levels of maturity or evolution. Some businesses are little more than an idea; some are built out a little bit. They represent the continuum of startups.”
 
Organizers are expecting about 100 people to attend and provide feedback and insight to the pitchers. If all goes well, Bizdom plans to host similar pitch events three times a year in the future.
 
Heavy appetizers and a cash bar will be available. The event is from 6 pm-9 pm at Quicken Loans Arena. Two companies may get a chance to fill the last two slots in Bizdom’s August incubator program.

 
Source: Paul Allen
Writer: Karin Connelly
techpint lets entrepreneurs and investors share ideas over beers
When Paul McAvinchey moved to Cleveland in April 2012 with his wife Rebecca to lead product innovation for MedCity Media, the seasoned entrepreneur was impressed with the entrepreneurial community here.

“When I got here, I was really excited to see all the startup activity going on,” McAvinchey says. But the native of County Tipperary, Ireland, who also lived in Chicago, Munich and Dublin, was surprised that there were no informal events bringing all the startup organizations together. “I was used to having events where all the disparate groups came together to share their thoughts and ideas.”
 
So McAvinchey set out to start TechPint, a casual gathering for entrepreneurs and investors in internet technology. He made hundreds of phone calls and brought the area’s startup organizations together to plan the first TechPint event on Thursday, June 20 at 5:30 p.m. at Market Garden Brewery.
 
McAvinchey calls TechPint a “mini-tech conference in a bar with pints.” But that doesn’t mean TechPint isn’t a valuable resource. “It’s a really casual setting with drinks,” he says. “But we’re focused on a value-driven event where you are likely to go home with new ideas to work on or new things to think about.”
 
Many of the major startup organizations are on board, including JumpStart, Bizdom, LaunchHouse and MedCity Media. Speakers will be Mike Belsito, founder of eFuneral, John Knific, founder of DecisionDesk, Josh Walsh, founder of Designing Interactive, and Bizdom’s Paul Allen.
 
McAvinchey plans to hold TechPint every three months. Space is limited to 150 people, and it’s already nearly sold out. Tickets are $12 each.

 
Source: Paul McAvinchey
Writer: Karin Connelly
'spark plug' brings together incubators and accelerators to boost small biz
The Cuyahoga County Next Generation Council (NGC) will host Spark Plug, an event to celebrate small business growth and the region’s many opportunities for funding and growth, June 6 at Negative Space Gallery. The event kicks off Small Business Incubator Month.
 
“Spark Plug is focused on small business accelerators and incubators,” says Tammy Oliver, program organizer and a member of NGC. “It brings together all of the amazing resources we have in Cleveland and Northeast Ohio for young and innovative people.”
 
More than 20 incubators, accelerators and funding organizations will have tables set up to explain what they do and how they can assist a young business. “There hasn’t been an event before this where all of the incubators and accelerators come together in the same room,” says Oliver. “By supporting each other these organizations are supporting the region and all of the businesses. It’s not a secret that small business drives the economy.”
 
Successful businesses that have benefitted from some of the area’s resources will make presentations. Oliver hopes their stories will encourage other aspiring entrepreneurs. “There are so many people out there with amazing ideas and they don’t know where to start,” she says. “Hopefully, they will walk away with more knowledge and know they can take smart risks and there are a lot of people here to help them.”

Spark Plug runs from 5:30 p.m. to 8:30 p.m. Registration is preferred, but Oliver says walk-ins are welcome. Admission is free.


Source: Tammy Oliver
Writer: Karin Connelly
hough entrepreneur set to break ground on first-ever biocellar
Mansfield Frazier, the entrepreneurial mastermind behind the improbable Chateau Hough vineyard at E. 66th and Hough, says he will break ground on the world's first biocellar this year. He's raised more than half of the $100,000 needed to complete the experimental, innovative project.

"This is about growing crops in the wintertime," says Frazier. The biocellar, which has been described as a passive solar greenhouse, will consist of a glass structure built on top of the basement of a demolished  home. "We plan to grow mushrooms because they're $12 a pound, an acre yield higher than anything else. This is about renewing neighborhoods, reusing buildings and creating wealth in the inner city."

"The biocellar is based on two concepts," Frazier explains of the glass-topped structure developed by permaculture designer Jean Loria. "One is a root cellar, which has been around thousands of years, and the other is a greenhouse. It's basically taking a greenhouse structure and putting it on top of a root cellar."

Frazier says that he hopes to break ground in July so that the biocellar will be completed by fall. The two- to three-month build-out will be handled by Don Lasker of ALL Construction, and Frazier will also employ a lot of neighborhood residents and guys from a local halfway house. The biocellar was designed by Arkinetics.

Funding sources include local councilpeople, stormwater management funding from the Northeast Ohio Regional Sewer District and a local angel investor.

"We're budgeting $100,000 for the first one, but hopefully the cost will go down once we know what we're doing," says Frazier. "We know the science is there."


Source: Mansfield Frazier
Writer: Lee Chilcote
entrepreneurs riding road to success thanks to growing bike-based economy
As cities continue to become more bike-friendly, new bike-based businesses are springing up to support the movement. These bike-centric businesses are both banking on and promoting a growing interest in riding, and in the process they are boosting their cities' economies.
200-plus apartments set to hit downtown market with reserve square renovation
The latest wave of downtown apartments is hitting the market this summer as the K&D Group, currently the largest developer of downtown housing, gradually converts the former Embassy Suites at Reserve Square into new market-rate apartments.

K&D is releasing units floor by floor, with the first set having come online in May. The renovations include granite countertops and stainless steel appliances. There will eventually be 218 suites released; 120 of these will be corporate housing and 98 will be market-rate apartments. The corporate suites include furnishings, high-speed Internet, cable with HBO and light housekeeping with the rent.

K&D is calling the new apartments Reserve Square West (Reserve Square has over 900 units). Lease rates for market-rate apartments range from $785 to $1,800 per month; corporate housing rates range from $1,350 to $2,350.

"There are panoramic views from the building," says Cheri Ashcraft of K&D, who notes that one upper floor suite is called "The Laker" because of its lake views. "My phone is ringing off the hook; the first corporate housing units were pre-leased. People are coming into town for projects or they're being transferred here."

Downtown apartment occupancy rates continue to hover around 96 percent. Ashcraft says the new Reserve Square West units appeal to a discerning buyer who wants the amenities of new construction in a rental product. "It's like moving into a brand new house," she says. "You are the first one to be in that suite."


Source: Cheri Ashcraft
Writer: Lee Chilcote
forbes takes a sip of cleveland whiskey's novel methods
In a Forbes feature titled “Cleveland Whiskey Ages Bourbon In One Week,” science, technology, and culture writer Alex Knapp explores the unique process Tom Lix developed to bring his product to market.
 
“After making the spirit, a distillery places it into charred, American oak barrels to age. Usually for several years, with premium bourbons often aging for nine years or more,” Knapp writes. “But in Cleveland, Ohio, Tom Lix aims to disrupt the traditional aging process of bourbon. He’s developed a process to accelerate the aging process of whiskey from years into about a week.”
 
While the story does not go into details of the proprietary aging process for obvious reasons, a bare-bones explanation of how it works is revealed.
 
“It definitely does not taste like a young whiskey, a common snark you’ll see at some whiskey tasting websites, where Cleveland Whiskey is seeing plenty of detractors,” Knapp continues.
 
Enjoy the complete feature here.

6k-square-foot candy superstore promises to bring smiles to town
Elisabeth Sapell admits that she has a sweet tooth. But she also grew up in her family’s grocery store, Sapell’s Bi-Rite in Lakewood. So she paired her love for candy with her knowledge of the grocery store industry and will soon open the supermarket of candy stores, Candytropolis on Richmond Road across from Richmond Mall.

“It’s a large candy superstore,” Sapell explains. “It’s 6,000 square feet of pretty much every candy you can think of. You name it, it will be there. It’s a city with the streets lined with colorful candy fun.”
 
Sapell wanted to start her own business for a while before she came up with the idea for Candytropolis and joined Bad Girl Ventures' spring 2013 class. While she acknowledges the candy market is saturated, Sapell’s vision of a superstore that carries variety, specialty items and gift baskets, paired with a prominent online presence, will set her apart from the rest.
 
And Sapell has candy. “Candy makes everyone happy,” she gushes, pointing out that different candies conjure up nostalgic memories to any age. “It’s recession proof. Everyone wants a treat when times are tough.”
 
But Sapell also has a solid business plan in place. In fact, she was a finalist in the BGV business plan competition, and the experience helped solidify her vision.

“It was the opportunity to go to the classes, meet a lot of people and make connections,” she says. “And I wanted to be around like-minded people who wanted to do something on their own terms. It gets lonely when you’re trying to plan.” She also received an SBA loan after learning about the option through the BGV program.
 
Sapell recently hired an assistant manager and has candidates lined up for stock people, cashiers, a team leader and a social media specialist. Candytropolis is scheduled to open in September.

 
Source: Elisabeth Sapell
Writer: Karin Connelly
students compete for title of 'young entrepreneur of the year'
During the past school year, Youth Opportunities Unlimited (Y.O.U.) brought entrepreneurship education to five area high schools. Certified entrepreneur teachers helped more than 200 students come up with business ideas, create the businesses and execute the plans.
 
On May 23, 11 semi-finalists gathered at Ernst and Young’s education center in Cleveland to present their final business pitches in hopes of winning the E City (Entrepreneurship: Connecting, Inspiring and Teaching Youth) Northeast Ohio Young Entrepreneur of the Year title.
 
The semi-finalists gave eight-minute presentations, describing their businesses, marketing plans and business strategies. The audience voted to determine the three finalists and a three-judge panel selected the winners.

“They had fun, but it’s competitive,” says Carol Rivchun, president of Y.O.U. “They have to stand and make their PowerPoint presentations to the judges. The presentations included cash flows, Return on Investment, and budgets. And the judges really grilled them.”
 
Vanessa Galvan of T.W. Harvey High School in Painesville won the top honor of Young Entrepreneur of the Year, as well as $1,000 for her business, Piñata Time. Galvan's company makes kits that include everything needed to create a piñata. The judges felt Galvan has a strong business and marketing sense of what it would take to make Piñata Time a success.
 
Julianna Pierson of Shaw High School took home second place and $500 for Cat Sit, a cat sitting business that includes all toys and supplies.
 
Both Galvan and Pierson will travel to New York in October to compete for $10,000 in the Network For Teaching Entrepreneurship’s national business plan completion.
 
Maria Moreno, also of T.W. Harvey High School, took third place and won $250 for her customized floral accessories business, Bright Pickins.

 
Source: Carol Rivchun
Writer: Karin Connelly
culinary launch to host business incubator for food entrepreneurs
The Cleveland Culinary Launch and Kitchen and the Economic and Community Development Institute (ECDI) will be hosting a business incubator for food and beverage entrepreneurs this summer. The nine-week program will focus on the specifics of opening a food-related business -- from food safety and nutrition to marketing and product development.

“We’ll really touch on everything to get a business off the ground,” says Emily Sullivan, ECDI Cleveland operations coordinator. “We’re creating a food incubator program. This is a hands-on look at getting a food business started.” Participants also will develop business plans and have opportunities to meet with ECDI managers about securing a loan.
 
This will be a hands-on program, says Carolyn Priemer, general manager of the Culinary Launch. “It’s not going to be a classroom setting,” she explains. “We’re going to be out in the community and in restaurants.”
 
Incubator participants do not need to be Culinary Launch tenants to enroll in the program. However, there is a $200 fee once applicants are accepted. Scholarships will be available. Ten companies will be accepted. Applications will be taken through mid-June, with the program beginning in July.
 
Open for six weeks now, the Culinary Launch has six tenants, ranging from an ice cream maker to caterers to a custard frosting maker. The Launch is a partnership between ECDI, Carolyn and Gordon Priemer of J&M Real Estate, and Tim and Bill Skaryd of Hospitality Marketing and Sales.

 
Sources: Emily Sullivan and Carolyn Priemer
Writer: Karin Connelly
bizdom looks beyond cleveland for promising companies
Bizdom Cleveland has invested in 16 young companies since it set up shop in January 2012, and the organization is targeting 18 more companies this year. While many of the companies are local startups, Bizdom also scours the country in search of promising businesses to recruit to Cleveland.

So far Bizdom has brought four companies to Cleveland: Queryly from New York, MascotSecret from San Francisco, Firmly Planted from Los Angeles and CourseBuffet from Seattle.
 
“The bottom line is we’re looking for the best and the brightest wherever we can find them,” says Paul Allen, leader of Bizdom Cleveland. “We find them, and then we do our best to sell them on the benefits of doing business in Cleveland.”
 
It’s not difficult to recruit companies to the area, given Cleveland’s support of small startups. “There’s a very large and organized infrastructure here,” Allen explains. “Cleveland has a bunch of organizations that provide support, expertise, resources, investment, equity and debt funding. The continuum of organizations that support small business is unlike other parts of the country.”
 
And the assistance is accessible. “Cleveland has a tight-knit startup community that doesn’t take long to identify the key players,” Allen says. “They exist here and you can access them.” Allen points out that the Dan Gilbert and Quicken Loans name also attracts businesses.
 
One of Bizdom’s requirements is that its portfolio businesses locate in Cleveland. All four relocated companies have chosen downtown for their headquarters.
 
Bizdom companies have created 36 full-time and 10 part-time jobs. Allen hopes more out-of-town companies will come to Cleveland for Bizdom’s fall accelerator program in August. “We have lots of applicants from out of state for August,” says Allen.

 
Source: Paul Allen
Writer: Karin Connelly
brain gain group, bar association link up for cleveland pep rally
The Brain Gain Cleveland Project (BGCP) has teamed up with the Cleveland Metropolitan Bar Association to stage a lunchtime pep rally for the city they love.

The rally will be hosted by the legal organization and serve as its annual meeting, just with a far more diverse crowd than usual, says Debra Mayers Hollander, deputy director of scouting for BGCP.

Hollander is expecting 1,000 guests to make it to the floor of Quicken Loans Arena for the June 28 event. Among the more famous participants scheduled to appear are Cavs owner Dan Gilbert and Senator Sherrod Brown. BGCP members the Cleveland Orchestra and Positively Cleveland will be among the institutions on hand. The event also will include live music, videos about Cleveland, and food from local eateries.

Rally attendees can fill out a registration form online or purchase tickets by calling the bar association at 216-696-3525. Those who miss the daytime event can make up for it that night with a BGCP music and networking get-together at The Tavern Company in Cleveland Heights.

"It's going to feel inspirational," Hollander says. "Everybody coming together in the heart of downtown Cleveland to support one another."

BGCP is a nonprofit advocacy group founded by bar association members to grow the city through the creativity and energy of its citizens. The grassroots effort is led by Jon Leiken, a Jones Day partner and bar association president-elect. BGCP's website launched in 2012 and has attracted about 350 “scouts," a term referring to its members.  

"We hope [the rally] encourages people to join us and become a scout," says Hollander.

 
SOURCE: Debra Mayers Hollander
WRITER: Douglas J. Guth
community composting facility could become reality thanks to sustainability grant
San Francisco and Austin offer residential curbside composting, but such forward-thinking green ideas have yet to become a reality in Cleveland. A recently-awarded grant from Enterprise Community Partners, however, will help the Detroit Shoreway Community Development Organization think through how to develop a community composting facility for restaurants in the Cleveland EcoVillage.

Although citywide composting may not be in the cards right now, the pilot project could demonstrate ways to scale up composting in a range of city neighborhoods.

A similar $40,000 grant was also awarded to Burton Bell Carr Inc. to develop a safer streetscape plan for the Kinsman EcoDistrict. Forty percent of area residents do not have a car, and a recent multi-car accident here injured five people. BBC will develop a plan to improve the ability to safely bike and walk on Kinsman.

"Cleveland was the only city in the nation that got two projects funded through this program, which is pretty exciting," says Michelle Mulcahy with Enterprise Community Partners. "These projects are neighborhood-scale sustainability approaches that support the area's ongoing community development work."

Once the plans are finalized, these projects also could become national test cases for how to green cities, furthering Cleveland's reputation as a leader in this area.

Enterprise also recently issued a Request for Proposals to provide funding for a neighborhood-based climate action plan that would become part of a citywide plan.


Source: Michelle Mulcahy, Mark McDermott
Writer: Lee Chilcote
third federal breaks ground on trailside at morgana run project
Banks typically lend money to projects; developing them typically is left to homebuilders. Yet Third Federal, which started in a Slavic Village storefront 75 years ago, has taken the unusual step of assembling land and breaking ground on a huge community here.

Construction is underway at Trailside at Morgana Run, a 95-home development that will feature affordably-priced homes within a completely new urban subdivision with access to green space and a rail-trail. The project is located at Aetna and E. 71st Street next to the bank headquarters.

"Slavic Village really is the phoenix rising up in the city," says Jennifer Rosa, Public Relations Manager with Third Federal. "It's not that we couldn't find a developer; it's that the project is so important to us, we want to hold it to our standards and control it. We wanted to provide additional funding to keep Slavic Village going."

The project has taken over a decade to get to this point. Third Federal acquired land from individual owners and cleaned it up using Clean Ohio funds and other sources. The bank formed a public-private partnership with the City of Cleveland, Slavic Village Development and Zaremba Homes and designed the project. Then the recession came along and walloped any plans to break ground until now.

Homes at Trailside at Morgana Run will be priced from $126,000-$132,000 and feature two to three bedrooms and a single-floor master suite option. With down payment assistance, monthly payments fall well below rental rates for similar units.

Rosa says the timing couldn't be better. "We're seeing more jobs being created, more people living in the city. This is a place where people can afford a home."

The first 10 homes are under construction and nearly to the point of being framed. A model home will be available to walk through in July. Although none of the homes are sold yet, Rosa says that buyer interest has been strong.

The urban pioneers who live here will be greeted by a "prairie-like feel," Rosa says. "There will be lots of green space with native Ohio plants and grasses."


Source: Jennifer Rosa
Writer: Lee Chilcote