James DeRosa purchased the old Marshall McCarron's bar at Randall and John Avenue in Ohio City with dreams of reviving it as a hip restaurant.

Then, in 2008, the economy did a spectacular nosedive. Unable to get a loan to make even basic repairs on the dilapidated property, DeRosa and his partners put their dreams on hold. A mounting list of code violations soon landed them in housing court.

"We were faced with the option of tearing the property down or fixing it up," says DeRosa. "The neighbors thought it was important that this corner building be saved, and we didn't want to create another vacant lot in the city of Cleveland."

Eventually DeRosa and his partners Beth Kalapos and Thomas Stickney were able to obtain rehabilitation financing through Cleveland Action to Support Housing (CASH), a nonprofit whose mission is to revitalize Cleveland neighborhoods through repair and rehabilitation lending.

"This project wouldn't have happened without the CASH program," says DeRosa. "They helped us get a reduced interest rate on our rehab loan so the project would have cash flow."

CASH uses Community Development Block Grant funds from the City of Cleveland to subsidize rates through a linked deposit program. The interest rate that CASH offers is 3% below the typical bank rate -- right now, the rate is 2.6%. The nonprofit also helps owners to hire a contractor, develop a list of repairs, and complete inspections.

Today, the old Marshall McCarron's has been renovated into two new market-rate apartments -- a two-story, townhouse-style unit on the street and a three-story apartment in the back. There's also a new, stamped concrete patio where the bar's patio once sat.

The tavern, which was built in the late 1800's, has an illustrious history. The original property had likely been two separate houses, DeRosa says. They were pulled together -- most likely by horses -- to create the tavern.

"When we renovated the property, we found the seam between the two original houses, and we put the dividing wall back in to create two apartments," he says.

In the end, the historic tavern was not only saved, but handsomely restored. "We made mistakes, but we learned a lot and are proud of the project," says DeRosa.


Source: Jamie DeRosa
Writer: Lee Chilcote

Two Cleveland organizations aimed at drawing area teens toward an interest in employment and business have joined forces. E CITY Cleveland (which stands for Entrepreneurship: Connecting, Inspiring and Teaching Youth) and Y.O.U. (Youth Opportunities Unlimited) united earlier this year to pool their resources and heighten their outreach.

E CITY's entrepreneurial programs were completed by more than 300 teens last year.  Y.O.U.'s offerings, which include mentoring and job placement, made a difference for more than 4,600 teens in Cuyahoga County, many of whom were considered at-risk or in danger of not completing their high school studies.

The offerings of each organization are unique so that, when combined, they provide a full package of opportunities for young adults ages 14 to 19 to pursue their interests and develop life skills.

Y.O.U. and E CITY will focus on integrating volunteers and sharpening their combined offerings. Another goal of the merger is to develop additional programs for children in the City of Cleveland and elsewhere in the region.


SOURCE: Y.O.U.
WRITER: Diane DiPiero

Homeowners were taking out equity loans with alarming abandon just a few years ago, yet now many are reluctant to invest money in their homes. "With housing values falling, demand for home repair loans has also fallen," says Larry Slenczka, Vice President of Community Development for Dollar Bank.

Yet Dollar Bank continues to finance home rehabs through a partnership with Cleveland Action to Support Housing (CASH), a nonprofit whose mission is to revitalize Cleveland neighborhoods through home repair lending.

"CASH has been successful in identifying projects driven by investors," says Slenczka. "Their transactions tend to be very solid loans that have a very low default rate." CASH offers investors and owner-occupants a reduced interest rate. Currently, that interest rate is 2.6%.

Even as the average homeowner sits on the sidelines, some rehabbers are jumping in and finding deals. And the glut of vacant properties in Cleveland has presented an opportunity for savvy investors; while foreclosure rates nationwide reached their lowest level in four years last month, Cleveland still has a backlog of empty homes.

Yet while it seems anyone with a credit card can snap up a cheap foreclosure -- plumbing optional, of course -- that's just the beginning of the process. Getting a loan is no simple feat. Struggling with unsold inventories, many banks are cautious about lending to investors, while others aren't lending at all.

That's where CASH comes in. The nonprofit's partnerships with Dollar Bank and other lenders help owners get financing. In addition to offering a reduced rate, CASH helps owners to pick a contractor, develop a list of repairs, and inspect the work.

"Everybody wins," says Slenczka. "The neighborhood benefits from reinvestment, the benefits from private investment, and the bank benefits from a healthy market return."


Source: Larry Slenczka
Writer: Lee Chilcote

When you grab a quick cat nap during the day, you run the risk of either sleeping too little so that you're yawning in front of your co-workers or sleeping so much that you snooze right through your 2 p.m. sales meeting.

Local inventor Jonathan Husni wants you to get the ideal 20 minutes of quality sleep so you can be your productive self. Husni's Power-Nap Machine is a pocket-sized media player that produces inaudible sound waves that induce REM sleep -- the short, deep rest that accounts for about 90 to 120 minutes of a good night's sleep. While the sound waves work their magic, the user hears only a pleasant waterfall. At the end of it, the Power-Nap brings "the user to a refreshed state of heightened wakefulness," Husni says.

The nap machine is part of the Power Nap group of sleep products that includes CDs filled with computer-generated sound waveforms. Power Nap line of products was created by Acendex, a Beachwood-based network technology firm. Husni is president and founder of Acendex.


SOURCE: Jonathan Husni
WRITER: Diane DiPiero

The Global Cardiovascular Innovation Center (GCIC) on the Cleveland Clinic campus has taken another step toward advancing cardiovascular technology with the addition of Irish medical device solutions provider Creganna-TactX. Specializing in the design of minimally invasive innovations, Creganna-TactX has opened its Cleveland office to support local medical device manufacturers while partnering with the Clinic to develop further advancements.

"Our key markets are in cardiovascular, periferovascular and neurovascular technologies," says Randall Sword, business development director for Creganna-TactX. "Our technologies are not readily available in the Cleveland area. Part of our mission is to support local businesses and hopefully grow a presence."

In addition to its headquarters in Galway, Ireland, Creganna-TactX has locations in Campbell, California; Marlborough, Massachusetts; Plymouth, Minnesota; and Singapore. The new Cleveland office "provides us access to the Clinic and their world-class physicians," Sword says. The Clinic's resources could offer input into development and manufacturing to benefit current customers while helping to evaluate new projects to meet future demands, according to Sword.

The Cleveland office will initially be staffed with one or two part-time employees. "We'd like to grow that as soon as possible," Sword says. "Our intention is to try to grow to a small lab that can work with the Clinic and their physicians and support local small businesses in development."


SOURCE: Randall Sword
WRITER: Diane DiPiero

A packed house at Monday night's Local Food Cleveland meeting on raising backyard livestock demonstrated growing interest in raising chickens, bees and other animals in urban neighborhoods across Northeast Ohio.

When audience members at the Great Lakes Brewing Company's Tasting Room in Ohio City were asked by event organizer Peter McDermott if they currently were raising backyard livestock or were planning on it, approximately two-thirds raised their hands.

Two years ago, Cleveland City Council passed progressive "chicks and bees" legislation that allowed city residents to raise and keep certain farm animals and bees. Other municipalities in Northeast Ohio also allow residents to keep backyard livestock. Presenters urged audience members to consult their local zoning code and contact their local zoning officials with questions.

The majority of livestock owners in Cleveland tend chickens (not roosters) for eggs or bees for honey, said McDermott, a Network Weaver with Entrepreneurs for Sustainability (E4S). While raising goats, pigs and other animals is also permitted in some places, those animals typically require more land than is available on urban lots.

Despite the growing interest in urban farming and backyard livestock in U.S. cities, many municipalities lag behind. Some zoning codes prohibit or strictly limit keeping chickens, bees and other animals, while others do not address the issue. Presenters urged audience members to educate themselves -- in many Northeast Ohio communities, despite assumptions to the contrary, raising chickens and bees is permitted in some form.

McDermott cited a plethora of benefits to keeping backyard livestock, including saving money on groceries, providing healthy, locally produced foods to residents, and income generation for owners who sell eggs and other products to neighbors or through local markets.

As the local foods movement in Northeast Ohio continues to expand, McDermott challenged audience members to consciously support the infrastructure needed to sustain it, including educating wary public officials at the state and local level.

"Studies show that local food is potentially a $15 billion economy in Northeast Ohio, and in recent years, we've seen a fifteen- to twenty-percent increase per year in local farmers' markets," said McDermott. "The question is, can the market for local foods support continued expansion? Our group is interested in accelerating the progress."


Source: Peter McDermott
Writer: Lee Chilcote

Michele Iacobelli Buckholtz has treasured memories of going to lunch with her dad in Little Italy. He grew up here when it was an Italian neighborhood with markets on nearly every corner. She soaked up the old neighborhood during these childhood visits.

Today, Buckholtz is recreating the tradition of the small Italian market -- with a contemporary twist. She recently renovated an historic storefront at Murray Hill Road and Paul Avenue in Little Italy. It reopened as the Murray Hill Market, which is open seven days a week for lunch and dinner and carries fresh produce and groceries.

Patrons of the Murray Hill Market can expect something new with each visit. The specials change daily, based on fresh ingredients and the chef's whim. Some favorites appear consistently, however. Buckholtz offers meatball subs every Thursday, relying upon her mother's recipe of course.

Little Italy has changed since Buckholtz's father grew up here -- there are fewer Italian families now, more students and empty nesters. The small, corner markets have all but disappeared. Yet with the growth of University Circle and sharp condos sprouting up in Little Italy, demand exists for a contemporary market, Buckholtz says. She considers it part of her mission to provide fresh, healthy foods to area residents and employees, an amenity she says is lacking at other neighborhood stores.

The Murray Hill Market is also spicing up the food offerings in Little Italy. Although Italians are no longer the predominant ethnic group here, the restaurants along Mayfield and Murray Hill Roads still offer mostly Italian fare. While Buckholtz specializes in Italian foods, she also offers an array of other ethnic foods, including Jewish and French pastries, Middle Eastern dishes, and Puerto Rican rice and beans.


Source: Murray Hill Market
Writer: Lee Chilcote

Last October, Cleveland's ViewRay unveiled a research radiation therapy system to the medical device community. Now comes word that the Food and Drug Administration (FDA) has granted ViewRay clearance for its radiotherapy treatment planning and delivery software, a key element of the radiation therapy system.

This is a critical step toward FDA approval of the system, according to Gregory M. Ayers, M.D. and Ph.D., president and CEO of ViewRay. "It's exciting to see such progress with a product we believe will offer an advancement in radiation therapy," he says.

Combining MRI and radiotherapy delivery, the system provides a continuous MRI during radiation treatment. This helps doctors to see exactly where the radiation is going and to deliver precise treatment.

A recent $20 million Series C financing will help ViewRay in the final stages of development for commercial distribution. For now, the ViewRay system is only used in non-human settings.

A team of physicians and researchers leads the privately held medical device company. ViewRay is currently in growth mode and building its staff in quality assurance, software engineering, clinical science and sales.


SOURCE: Gregory M. Ayers
WRITER: Diane DiPiero

It all started with pencils.

Faber-Castell was founded 250 years ago in Germany as a pencil manufacturer. Today, the company produces professional art supplies sold around the world. Cleveland is home to Faber-Castell USA, which in 1999 acquired Creativity for Kids, a Cleveland company that makes  activity kits for children.

In spite of an onslaught of electronic gadgets and high-tech toys, Faber-Castell USA and Creativity for Kids have remained lucrative and kept an 80-person staff. "We have had two record-setting years in 2009 and 2010," says Jamie Gallagher, CEO of Faber-Castell USA.

How does the company stay sharp? "We have a nice portfolio of product lines that enable us to be diversified during challenging times," Gallagher says.

Creativity for Kids helps Faber-Castell build brand awareness in the United States, according to Gallagher. Often, this is accomplished by combining products from the two lines into a single kit. For example, Creativity for Kids' Do Art Drawing Power, which teaches children sketching and drawing techniques, includes Faber-Castell Color Grip EcoPencils.

Gallagher says the goal of Faber-Castell USA is to deliver "opportunities for creativity and self-expression while highlighting the importance of quality. Despite difficult times, we haven't compromised that or tried to reinvent our brands."

That doesn't mean Faber-Castell USA isn't interested in growing. The company recently launched a line to expand interest in papercrafting for adults. "The product line, Design Memory Craft, features products that make designing with color simple to do," Gallagher says.


SOURCE: Jamie Gallagher
WRITER: Diane DiPiero

As the saying goes, "you've got to spend money to make money." With a new $35 million award in tax credits from the U.S. Department of Treasury, Cleveland Development Advisors (CDA) plans to spur economic development in the city by financing projects that lead to more business opportunities.

CDA, an affiliate of the Greater Cleveland Partnership, was one of six entities in Ohio to be awarded this latest round of federal tax credits. CDA plans to use the award to focus on economic development in the areas of technology, business and industrial expansion and retail, residential and hospitality projects.

In a statement released by CDA, Mayor Frank Jackson called the federal tax credits another sign that Cleveland's economy is growing. "Tax credit financing, afforded by the allocation, together with local bank commitments and city investments, will make high-profile job-producing developments feasible in our neighborhoods and downtown," Mayor Jackson said.

Past awards from the Treasury Department resulted in the financing of 20 projects that, according to CDA, generated 2,800 jobs, 390,000 square feet of office space, and 450,000 square feet of industrial space in Cleveland. The East 4th Street neighborhood, Capitol Theatre in the Detroit Shoreway neighborhood, Arbor Park Plaza in the Central Neighborhood and the UpTown project in University Circle all have benefited from CDA's investment in federal tax credits.


SOURCE: CDA
WRITER: Diane DiPiero

When Sam McNulty opens his Ohio City-based Market Garden Brewery later this year, he will join four other micro-distilleries scattered about the state. Cincinnati's Woodstone Creek is the oldest, followed by Columbus' Middle West Spirits, Grandview's Watershed Distillery, and Tom's Foolery in rural Geauga County. Others, too, are waiting in the wings. Sadly, Ohio, a state rich with entrepreneurship and agricultural resources, makes it nearly impossible for them to succeed.

When Jim Catanese opened Catanese Classic Seafood three years ago, he knew the building at 1600 Merwin Avenue in the Flats needed major TLC. Yet the metal bulkheading along the Cuyahoga River was in far worse shape than he thought. And the worst part was near his freezer, where thousands of pounds of fish are stored.

"It was collapsing into the river," Catanase told an audience at last week's forum on the Flats, which was convened by Ward 3 Councilman Joe Cimperman and attended by area stakeholders. "This was more than we could handle individually."

Fortunately, with the help of Cimperman and the city of Cleveland, Catanese was able to obtain low-interest financing to repair the bulkheads. He hopes that the project, which will start this summer, will also bring back an historic use of the riverside property. "We'll be able to offload fishing boats again," he said.

The Cuyahoga shipping channel is lined on each side with these bulkheads, a 100-year-old, man-made containment system that keeps the soil from the riverbank from eroding into the river while also keeping the river within its banks during times of flooding.

Unfortunately, many of these bulkheads are now deteriorating, and they are expensive to repair. Catanese expects to borrow hundreds of thousands of dollars, a price that many owners can't afford, he says. Maintenance of the bulkheads is necessary to ensure the channel remains navigable for shipping. Activity along the waterfront is a $1.8 billion economic engine for Northeast Ohio.

At the forum, Catanese voiced a common concern in the Flats: the need for improved infrastructure. Currently, more than $2 billion worth of development is planned or underway in areas adjacent to the river. Forum speakers said that much of the Flats' infrastructure, including roads and bridges, is in need of an overhaul.

One of the area's biggest infrastructure projects will require major federal assistance. Franklin Road Hill above Irishtown Bend is threatening to collapse into the Cuyahoga River, and stabilizing it will cost between $80 and $200 million.

For years, the Flats' redevelopment has languished amidst conflicts between competing interests. While the area has evolved into a mixed-use neighborhood of industry, recreation, housing and entertainment, neighbors haven't always been friendly.

The planning effort that is now underway, which is funded by a $20,000 grant from the Cleveland and Gund Foundations and includes major stakeholders, has the potential to link major projects, balance conflicting interests and attract additional support.


Source: Jim Catanese
Writer: Lee Chilcote

The Cleveland Conserves Campaign is an effort by the City of Cleveland and local environmental groups to cut waste, save money and boost the local economy. Calling 2011 "The Year of Energy Efficiency," these groups are promoting energy conservation efforts to individuals and businesses.

The Cleveland Indians are among the local businesses championing the initiative. The Tribe has had a comprehensive recycling program since Jacobs Field opened in 1994. The Indians were the first major league team to install solar power at their stadium, a project completed in 2007. They have also installed LED lighting throughout the park.

This year, the Tribe is expanding its composting efforts at Progressive Field. The Indians began composting the waste from concession stands, restaurants and the clubhouse at the end of the 2010 season. In 2011, they will begin composting from the main seating areas.

"Cleaning crews will do three walk-throughs -- for organics, plastics and trash," explains Brad Mohr, Assistant Director of Ballpark Operations for the Cleveland Indians. "It's cheaper to compost than it is to send organic materials to a landfill."

In 2010, the team composted 2.5 tons of food waste from concession stands, restaurants and the club house in only six games. Cornstarch-based beer and soda cups, cutlery, and hot-serve cups are used throughout the ball park, in the front office and in the press box.

The team's marketing message -- Our Tribe is Green ... Are you in the Tribe? -- encourages fans to participate in green activities, including recycling. "We look at ourselves as a business and community leader," says Mohr.

So far, the Indians are pleased with the investment they've made in conservation measures. The team recycled over 153 tons of materials in 2009, reducing trash pickup by over 60 percent, from 254 trash pickups in 2007 to 97 pickups in 2009.

Conservation measures not only protect the environment, they also protect a business' bottom line. The Indians invested $30,000 in balers to make cardboard or plastic into giant cubes. Selling the cubes along with money savings from reduced trash hauls paid off the initial investment within four months.


Source: Brad Mohr
Writer: Lee Chilcote

Slow and steady may win the race, but a quick oil-change company is winning kudos for its sustainability practices. Cleveland-based Lube Stop has been recognized nationally for its formal sustainability program and its re-refined oil change service, EcoGuard. The latest recognition comes from the Institute for Sustainable Development's Green Plus awards, which named Lube Stop a Medium-Size Business of the Year recipient.

This award recognizes a company's ability to affect triple-bottom-line sustainability practices. Lube Stop's sustainability efforts revolve around a five-step process: strategy development, ongoing waste reduction, sustainable operations, individual initiatives and public awareness.

Lube Stop has 37 stores in Northeast Ohio and more than 240 employees. The company adopted its sustainability program in 2007


SOURCE: Lube Stop
WRITER: Diane DiPiero

President Obama came to Cleveland on Tuesday to hear what small business owners say they need to grow their businesses and thus strengthen the U.S. economy. But the President took the time to praise the region for its growth in biotechnology, sustainability and other innovations.

"Cleveland is a city founded on manufacturing," the President said during his closing remarks on the Winning the Future Forum on Small Business, held at Cleveland State University's Wolstein Center, which this writer attended.

"A lot of people wrote off Cleveland as a shell of what it used to be, but you knew different," the President said to the small business owners and entrepreneurs who had been selected to attend the forum.

The President talked about the united effort of local universities, hospitals and entrepreneurs to advance innovations in biotechnology and clean energy. "They've made Cleveland a global leader in both fields," the President added.

Cleveland's ability to reinvent itself, the President noted, can be an inspiration for other areas of the country, as well as the United States in general. "How will America reinvent itself?" the President asked the audience.

Obama also pointed out the success of several long-standing businesses in Cleveland, including Miceli Dairy Products, which has operated a facility on E. 90th Street since 1949. Miceli's received a $5.5 million SBA loan to build a new factory and expand its production, according to the President. "This will double the output of ricotta cheese and add 60 workers," said Obama, joking that he'd like some cheese samples once the expansion project is complete.


SOURCE: President Obama
WRITER: Diane DiPiero

The Capitol Theatre, a three-screen movie theater at Detroit and W. 65^th Street that opened in late 2009, has met its projections by attracting 45,000 patrons in its first year.

The pioneering venue is the only indie movie theater on Cleveland's west side. The Detroit Shoreway Community Development Organization (DCSDO), the nonprofit developer, secured financing and broke ground on the project just a few months before the collapse of the financial markets in 2008. The theater, which contains a beautifully restored main room and two smaller rooms, is a centerpiece of the burgeoning Gordon Square Arts District.

To ensure continued viability, the Capitol must grow its audience by 10 percent per year for the next five years, says Jenny Spencer, Project Manager with DSCDO. "Right now, we're building an audience," says Spencer. "We're doing about as well as we'd expected, but we need to keep growing."

Spencer cited the strong attendance during recent screenings of Black Swan and True Grit as indication that the Capitol's audience will continue to grow.

Since the Capitol opened, it has broken the corporate mold by offering special events, resident discounts, partnerships with local restaurants and other creative strategies to entice moviegoers. Currently, it is offering a promotion for Lakewood residents, who can see a movie for $6 through the end of March. The Capitol is run by Cleveland Cinemas, which manages eight theaters, including the Cedar Lee.

The Capitol Theatre's growing audience will also help to attract more independent films, Spencer said. When the Capitol Theatre project was first launched, the venue was billed as the "Cedar Lee of the West Side" by promoters. However, the theater had difficulty attracting the indie hit "Waiting for Superman" because attendance wasn't high enough. Thus, the theater has been forced to screen a mix of independent and larger Hollywood films, and Spencer says that will likely continue.

Although movie theaters across the country continue to face competition from Netflix and other online services, Spencer says that special events such as "Sunday Classic Movies" and partnerships with restaurants are attracting patrons seeking a unique movie-going experience. And while Crocker Park has 16 screens, she adds, the Capitol is still the only West Side venue where you can order a beer.


Source: Jenny Spencer
Writer: Lee Chilcote

Justin Husher graduated with an MBA from Cleveland State University in May of 2008 -- just in time for the collapse of the financial markets.

Instead of wringing his hands, Husher considered his bleak job prospects as a sign. "I never wanted to be a banker," he told the audience at last week's forum on vacant land reuse at Cleveland State University's Levin College of Urban Affairs. His college major had been botany, and he'd always dreamed of tending the soil.

That's when Husher learned about Reimagining Cleveland, a small grants program that was launched to support the creative reuse of vacant land in the city.

Husher applied to the program, which is managed by Neighborhood Progress (NPI) and funded by the Surdna Foundation and the City of Cleveland. After he was awarded a $7,500 grant, Husher worked with Cleveland's land bank program and Bellaire Puritas Community Development Corp. to cobble together a half-acre of land on W. 130th. Pretty soon, Old Husher's Farm was born.

Husher, who sells his produce at the Gordon Square farmers market and other venues, has a passion for local food. "I like to grow vegetables with storylines, such as heirloom tomatoes," he said. "It's important to learn where our food comes from."

At last week's forum, the young farmer also offered recommendations for improving the business climate for urban agriculture. Husher's wish list includes longer-term leases with property owners and an initiative to help farmers purchase land at affordable prices. He'd also like to see a cooperative stand for urban farmers to sell locally grown food at the West Side Market.

Since Reimagining Cleveland launched in 2008, the program has funded 56 projects to creatively reutilize vacant land in Cleveland. According to the Reimagining Cleveland website, there are an estimated 3,300 acres of vacant land in the city of Cleveland.


Source: Justin Husher, Reimagining Cleveland
Writer: Lee Chilcote

Rachel Talton, Ph.D. was one of the entrepreneurs invited by the Obama Administration to attend Tuesday's Winning the Future Forum on Small Business. Talton, co-founder of Cleveland-based Trust, a marketing and management consultant agency, and founder and CEO of Fairlawn-based Synergy Marketing Strategy & Research, joined about 20 other small business owners and entrepreneurs in a discussion on entrepreneurism. They had the ear of President Obama himself, who took the time to listen in on various breakout sessions during the forum.

"President Obama was very engaged in intensive and substantive conversation," says Talton. She and her fellow entrepreneurs in the group shared with the President a list of ways that the administration could help both small and large businesses thrive: access to capital, formalized mentorship programs, access to capacity-building services and less onerous processes for doing business with the federal government.

Talton says she was encouraged to hear that Steve Case, co-founder of AOL and a career entrepreneur, will be taking a lead role in President Obama's Council on Jobs and Competitiveness. "The initiative will be quasi-government. Decisions will be made more quickly -- without much red tape," she says.

Talton was also happy to hear that Obama expects to engage large corporations in mentor-protegee programs. "I think this approach can be truly sustainable," she notes.

The President's "real commitment on this issue [of spurring small business growth to strengthen the economy] can move people within the federal and state government, even those who disagree," Talton says. "He can also attract large corporations to participate, for the greater good and for their own good."


SOURCE: Rachel Talton, Ph.D.
WRITER: Diane DiPiero