Regional Economy

53-year-old ka architecture still growing after all these years
In 1960, the late Keeva J. Kekst founded ka architecture in his attic, where he designed apartment buildings. Today, under the third generation of ownership, ka architecture is behind the designs of some of Northeast Ohio’s newest and most prominent structures, including the Horseshoe Casino in Public Square and the new Eaton Corporation world headquarters in Beachwood.
 
“We’re pretty proud that we’re still around and we’ve weathered this recession,” says ka president and COO John Burk. He credits ka’s success in part to the firm’s ability to work well as a team with other firms. Both the Horseshoe Casino and the Eaton project involved multiple firms working together.
 
As executive architects, ka had to coordinate all the players. “Both were interesting projects,” says Burk. “And both projects were team projects -- it was not just ka ownership, but owner reps, contractors and consultants -- a huge list. Working with other firms and good clients in a team atmosphere, it’s only challenging because there are so many people. But it’s not difficult if you put the right team together.”
 
ka’s work in Cleveland has led to additional projects elsewhere. “Based on our performance on the Cleveland casino, we were asked to be a part of the team working on the Horseshoe Casino Baltimore,” says CFO Alan Siliko.
 
Today, ka has 46 employees. The firm added two architects in January and an entry-level associate earlier this month. Burk says they will add to the staff, if need-be. “We never grow to grow,” he says. “We hire because we foresee an extended period of growth. And we’re cautiously optimistic.”

 
Sources: John Burk, Alan Siliko
Writer: Karin Connelly
casexpert helps insurance companies resolve claims quickly, fairly
JumpStart recently invested $250,000 in Casentric, a Shaker Heights developer of a cloud-based software-as-a-service application to help insurance companies resolve property and injury claims quickly and fairly. CaseXpert streamlines the information needed to resolve a claim by integrating liability, injury and medical reports into one, making the adjuster’s job easier and un-biased.

“This tool helps insurance companies resolve their cases more accurately and faster,” explains Jim Kaiser, Casentric CEO. “CaseXpert helps adjusters evaluate claims in a balanced way that is fair to the customer, but represents the companies’ interests as well.”
 
Before CaseXpert, adjusters often were left to rely on their own experience to determine claims. “Claims were determined through their own expertise,” says Kaiser. “Adjusters had to grapple with claims.”
 
Casentric launched the first version of CaseXpert in September, and relied on user feedback before releasing its second version early this year. “We heard adjusters get bombarded with a lot of information, and it’s hard for them to get their arms around,” says Kaiser. “We made sure the information is easy to use. The users said, ‘It makes me more confident in figuring out what’s going on with the case.'”
 
Kaiser says Casentric plans to use the JumpStart investment to roll out additional components to CaseXpert and generate sales. The next component will be a negotiation tool. “Adjusters spend a good part of the day negotiating,” says Kaiser. “Our virtual dashboard tells users how it’s going, are we miles apart and does this look like it’s going the right way.”
 
Casentric currently outsources three positions. Kaiser says he hopes to hire some permanent staff members with the JumpStart investment.

 
Source: Jim Kaiser
Writer: Karin Connelly
community development leader says city's population can be stabilized, all neighborhoods can succeed
During a recent address at the City Club of Cleveland, Joel Ratner of Neighborhood Progress Inc. touted recent success stories that the nonprofit has invested in, including a new home for The Intergenerational School underway at the Saint Luke's campus.

Ratner believes that even though Cleveland has been hard hit by the foreclosure crisis, the city can stabilize its population and begin to grow again through promoting thoughtful, equitable, synergistic development that helps everyone succeed.

"For a long time, there was a debate over whether it makes sense to invest in people or place," said Ratner. "However, we believe it should be people and place."

Ratner cited Pittsburgh as an example of a city whose population has been right-sized and has even begun to grow again in recent years.

As examples of why community development matters, Ratner presented statistics showing that neighborhoods where NPI invested heavily over the past decade not only fell less steeply in the recession, but are also coming back more quickly than others. He also believes that every Cleveland neighborhood can be successful.

Ratner touted the recently-announced Slavic Village Reclaim Project, which leverages private investment by Safeco Properties and Forest City to help rehab 2,000+ properties on 440 acres, as one example of innovative best practices.

He also cited NPI's partnership with the Key Bank Financial Education Center to help low-income residents build wealth through savings and investment programs. Through a possible merger with Cleveland Neighborhood Development Coalition and LiveCleveland, Ratner hopes to begin serving additional neighborhoods.


Source: Joel Ratner
Writer: Lee Chilcote
anchor districts emerge as powerful players in bid to remake cities into vibrant, livable places
“Cities are back, downtowns are back, and the places that we call anchor districts are leveraging growth in cities,” says Chris Ronayne of UCI. In Cleveland and beyond, stakeholders like universities, hospitals and museums ('eds and meds') are leading the way in reshaping cities into vibrant, livable places.
huffpo story touts ecdi commitment to green city growers
In a Huffington Post blog post titled “Cleveland Start-Up Seeing Green,” Emily Sullivan explains how the Economic & Community Development Institute (ECDI) is assisting Evergreen Cooperative’s latest venture, Green City Growers Cooperative, in operating a 3.25-acre hydroponic greenhouse and packing facility on Cleveland’s east side.
 
“The Greenhouse, and its employee-owners, will produce over 6,000,000 heads of lettuce and other leafy vegetables a year, all intended for local consumption,” Sullivan explains.
 
The choice for ECDI to support the cooperative was simple due to the fact its business model stood out.
 
“The opportunity to work with Green City Growers' cooperative provided the perfect starting point for ECDI to get involved in healthy food initiatives across the Northeast Ohio region.”
 
Read the full story here.

one fund grants $200,000 to bizdom, launchhouse for 20 new startups
Bizdom and the Shaker LaunchHouse Accelerator (LHX) program each received $200,000 from the Third Frontier Ohio’s New Entrepreneurs (ONE) Fund to invest in a total of 20 startups. The two are the only business accelerators in Ohio to receive the funding.

While Bizdom’s program focuses on software and web opportunities in healthcare, consumer finance, real estate, entertainment, sports, online marketing and gaming, the LHX program centers on technology, internet, mobile and hardware/robotics industries.
 
However, Bizdom leader Paul Allen says they welcome all types of businesses to apply for their accelerator. “Every company today uses technology in some way, so the definition of technology companies is evolving,” he says. “We do like software, web and apps companies because they are less capital intensive, but we want to see everything. We’ll look at any technology business.”

LaunchHouse will accept applications for the August 12-week accelerator program starting tomorrow. Bizdom's application deadline for the summer program is March 17 and July 7 for the fall program.
 
The two organizations are looking forward to running their fall programs simultaneously. “We’re looking to collaborate and build jobs and the best businesses in Northeast Ohio,” says LaunchHouse CEO Todd Goldstein.
 
Allen says the two programs will be of historical importance in the region. “As far as I know, we’ve never had 20 companies at the same time,” he says. “We collaborate whenever we can, wherever it makes sense. The goal is to create lots of successful new businesses, create jobs and replace jobs that have been lost.”
 
Since January 2012, Bizdom has launched 18 new tech businesses in Cleveland, nine of which received follow-on funding and are profitable. LaunchHouse, which was recently named one of the best incubators in the North and Midwest by Elite Daily, has launched 10 companies in its inaugural accelerator program last summer, and has invested in 40 companies and raised $9 million in follow-on funding since 2008.

 
Sources: Paul Allen, Todd Goldstein
Writer: Karin Connelly
mpr acknowledges med mart as top competitor for mayo
In a Minnesota Public Radio feature titled “How does Mayo stack up against its competitors?” Elizabeth Baier explores how Cleveland’s own Cleveland Clinic and Global Center for Health Innovation (formerly known as the Medical Mart) is hindering Minnesota’s Mayo Clinic’s aspirations to be the leader in the healthcare industry.
 
Baier states that while the Mayo Clinic is consistently ranked as one of the nation’s top medical facilities, its competitors are growing by leaps and bounds as well.
 
“The center, officially the Global Center for Health Innovation and Cleveland Convention Center, is publically financed through a quarter-cent local sales tax passed in 2007. The one-million-square-foot campus will house big-name health manufacturers and service providers like GE Healthcare and the Cleveland Clinic.”
 
The project alone is expected to draw an additional tens of thousands of visitors to Northeast Ohio each year.
 
Explore the full story here.

online resource unites region's agencies to help bridge the education-to-employment gap
Imagine having an online resource with the information needed to custom design your own career path. That’s what the UNCOMN.TV does. This project identifies what employers need in employees, what educators need to be teaching students, and what students need to be doing to snag jobs -- thus helping to turn brain drain into brain gain.
largest urban greenhouse in the country officially opens in central neighborhood
Cleveland has gained a reputation nationally for its vibrant local food culture. The city's foodie status has gotten quite a bit bigger - literally - thanks to Green City Growers Cooperative, a 3.25-acre greenhouse that celebrated its official opening on Feb. 25.

Size matters at the hydroponic, high-tech greenhouse, which aims to produce three million heads of lettuce and 300,000 pounds of herbs annually to vendors within a 50-mile radius from its location in Cleveland’s Central neighborhood.
"It's the largest food production greenhouse in an urban area in the U.S.," says Mary Donnell, CEO of Green City Growers.

The greenhouse, which is the size of three football fields, grows its healthy wares in nutrient-rich water rather than soil. The year-round venture, overseen by the nonprofit Evergreen Cooperative Corporation, started harvesting crops in January and is already producing about 60,000 heads of lettuce per week. Green City Growers customers include grocery stores and restaurants.

Planting the leafy goods are local residents. The 25 Clevelanders Green City Growers hired to run the operation will become employee-owners of the cooperative business, receiving a living wage and health insurance.

Besides producing those tasty eats, the goal is create jobs and build financial assets for residents of Cleveland's underserved neighborhoods, says Donnell, whose background includes helping to create a hydroponic greenhouse program for The Ohio State University. The project's key partners include the City of Cleveland, the Cleveland Foundation, PNC Bank and the National Development Council. 

Cleveland's new greenhouse is an economic development project that could mean better things for an inner-city neighborhood. "It's wonderful that we have this in the heart of the city," Donnell says.
 
 
SOURCE: Mary Donnell
WRITER: Douglas J. Guth
agnes gund professes love for cle museum of art
In a Huffington Post piece titled “About a Museum,” Agnes Gund, President Emerita and Chairman, International Council of The Museum of Modern Art, writes of her childhood growing up learning to appreciate the arts at the Cleveland Museum of Art.

“That museum -- inspired by a band of prominent citizens, designed by local architects on donated land -- opened in 1916 as an achievement and adornment of its city. It was Cleveland through and through, not least in the motto it proclaimed for itself: "For the benefit of all people, forever."

The post continues into warm tribute to a place that has become a part of Gund herself.  It is a very intimate account of the importance the museum has played throughout her life.

Enjoy her full account here.
yahoo calls tremont, ohio city 'hot places to live'
In a Yahoo! News feature titled “Hottest Cleveland Neighborhoods for 2013,” writer Paul Rados describes the improving real estate environment in Cleveland, while highlighting the Tremont and Ohio City neighborhoods as an area ripe with potential.

Both are popular, trendy neighborhoods that are a major draw due to their walkability and proximity to downtown, dining and entertainment.

“There is a friendly attitude everywhere you go," Sarah Urbancic of Howard Hanna explains. "People like being in the thick of things and also appreciate the fact that if your city is strong, the neighborhoods will be stronger. Everyone supports the effort to make each building [and] each block stronger and more welcoming."

Check out the full piece here.
literary lots aims to transform cle's vacant spots into reading zones
If  Kauser Razvi has a say in it, underutilized spaces in Cleveland will be a place where a child's imagination can run wild, all thanks to power of the written word.

Razvi, founder of the Cleveland-based project management organization Strategic Urban Solutions, is the book-loving brains behind Literary Lots a program that aims to "brings books to life" in a vacant lot, playground or other outdoor space.

To pilot this idea, Strategic Urban Solutions plans to launch its first Literary Lot this summer in Ohio City's Novak Park. In conjunction with Cleveland Public LibraryLAND Studio, and Ohio City Writers, Razvi's group will recreate places, concepts, and adventures from select children's books. The space will also host educational programming, with the goal of bringing Cleveland's kids together through the cooperation of the city's cultural institutions.

"Libraries are community anchors," says Razvi. "We thought it would be cool to marry the idea of bringing books to life in places near our libraries."

The summer program spot would have books (of course), poetry readings or a movie based on the book the space is built around. Artists would enliven the space, perhaps decorating a small sandpit in which kids can dig for buried gold,  just like the young adventurer from Treasure Island.

"I think of it as a 'comfortable artistic backyard,'" Razvi says.

Building a nice "backyard" isn't free. A Kickstarter fundraising campaign for the project begins at the end of February, with a minimum goal of $5,500. Razvi believes transforming an underused space into a reading zone for kids is well worth the price of admission.
 
SOURCE: Kauser Razvi
WRITER:  Douglas J. Guth
q & a: dave karpinski, new vp of operations at leedco
As new VP of operations for the Lake Erie Energy Development Corp (LEEDCo), Dave Karpinski will guide the organization through the next phase in the process of building the nation’s first freshwater offshore wind project. With its first round of financing in tow, LEEDCo must now compete for a critical second infusion of funds against six other projects across the country.
beachwood offers incentives to businesses that locate or expand
The city of Beachwood already is home to 2,500 businesses, and the city has long taken pride in providing services and amenities that make the city an attractive place to locate. Now Beachwood is launching a grant program to further entice new businesses and encourage existing businesses to expand.
 
The Job Creation Incentive Grant Program offers annual grant payments to companies. The payments are based on a percentage of payroll withholding taxes generated by new jobs. Businesses that relocate to Beachwood must create a minimum of 30 full-time jobs or a minimum annual payroll of $1 million within three years. An existing Beachwood company that expands within the city also qualifies for the grant under the same rules. Retail and food service businesses are not eligible.
 
Mayor Merle S. Gorden and city council must approve each grant application.
 
“We know that expansion of business is very important to the wellbeing of the community,” says Beachwood economic development director Jim Doutt. “Payroll is subject to income tax. A company would be able to get back some of that tax if it locates here.”
 
The program is just the first step in a larger economic development plan recommended after Gorden commissioned a study last October to position Beachwood for future business growth. City council approved the program on Feb. 4.
 
“This is just one element of a larger incentive framework we’ll be putting in place,” Doutt says. He has no estimates on how many jobs the incentive program may create in the city. “It’s anyone’s guess; we just hope it spurs job growth.”

 
Source: Jim Doutt
Writer: Karin Connelly
chef sawyer's local-food efforts grab attention of new york times
In a New York Times feature titled “Locally Grown Gets Tricky in the Cold,” writer Dan Saltzstein discusses the difficulty chefs face when trying to keep their menus locally focused at a time of year when not a whole lot is being grown.

"Locally grown. Market-sourced. Farm to table: These phrases have become the mantras of the American menu, promising ingredients that are supremely fresh, in season and produced within a tight radius of the restaurant," writes Saltzstein. "But what can they possibly mean in the dead of winter, in northerly climes where farms are battened down and the earth is as hard as a raw cabbage?"

Cleveland’s Jonathon Sawyer takes the winter months in stride.

“We sort of look at winter the way an old-school chef looks at frugality,” said Jonathon Sawyer of the Greenhouse Tavern, in Cleveland. “We take more time with dishes because we have less to put on the plate.”

Saltzstein also mentions Sawyer’s “Sustainability Initiatives,” including the bottling of his own vinegar and pantry full of preserved items.

Check out the rest of the interesting piece here.
venture for america plants fellows to halt brain drain
Venture for America, a non-profit group that places new college grads in startup companies, is coming to Cleveland. The New York-based organization focuses on placing new college grads in jobs at startups in cities with a low cost of living and in the process of revitalization.

“The goal is to create young entrepreneurs,” explains VFA vice president of corporate development Mike Tarullo. “Too many of our best and brightest are going into big firms and too few are going into growth businesses and startups.” Ultimately, the hope is that the fellows will become successful entrepreneurs themselves in the cities where they are assigned.
 
The VFA team scours college campuses for recruits. The grads then spend two years in startup or growing companies, getting hands-on experience in developing a company. The employers pay the fellows $36,000 a year.
 
VFA launched 18 months ago with 40 fellows in five cities: Cincinnati, Detroit, New Orleans, Providence and Las Vegas. This year the organization expanded to Cleveland and Baltimore. The concept is modeled after the Teach for America program, which places new teachers in underserved schools.
 
“We identify cities that are kind of reinventing themselves through entrepreneurship industries,” says Tarullo. “A lot of it is about preventing brain drain.” The VFA wants to create 100,000 new jobs by 2025 by helping young companies expand and train new college graduates to become business builders and job creators.
 
The organization has identified 25 possible Cleveland companies, and Tarullo has already talked to more than 10 companies that are interested in hiring a fellow. “They are all different sizes in all industries,” he says. “The common thread is great leadership and exciting growth opportunities. The fellows can cut their teeth and spend a couple of years learning and growing.”
 
VFA plans to send eight to 10 fellows to Cleveland each year. Tarullo has relied on area support organizations to identify companies. “JumpStart and Bizdom have played a huge role,” he says. “They have welcomed us to the community and introduced us to the right people.”

 
Source: Mike Tarullo
Writer: Karin Connelly
portside, cle's first distillery since prohibition, is hiring
Dan Malz is a science guy and a rum aficionado who always dreamed of making his own rum. Three years ago over a pint of Guinness, that dream was on the way to becoming a reality. That's when Malz and his three business partners, John Marek, Keith Sutton and Matthew Zappernick, founded Portside Distillery, Cleveland’s first distillery since Prohibition.
 
Portside Distillery produces small-batch artisan spirits and craft beers from its lakeside location on W. 9th and Front streets. Malz and his partners got the distillery’s name from their location. “We’re right on the lake, and rum is a very nautical term,” he says. We’re on the side of the port and in the same building as the Cleveland Port Authority, so it fit up well.”
 
Their first batch of silver rum was released in December of last year. “Silver rum is un-aged rum,” explains Malz. “It’s just high class distilled spirits.” Portside rum hit 22 state liquor stores in January. “The first batch of 800 bottles sold out in three days,” says Malz. “The second batch is in stores now.”
 
Plans are underway to expand Portside’s selection. “We’re going to make vanilla maple rum and spiced rum,” says Malz. “And we have a couple of beers brewing right now.” Malz and his partners are brewing double pale ale, followed by an imperial stout. The two new rums should be available later this month.
 
Additional plans include a restaurant at the distillery, which is scheduled to open this summer. It will feature upscale food, eight Portside beers and 18 local guest brews on tap.
 
Portside is currently looking to fill two positions, one in the brewery and one in the distillery.

 
Source: Dan Malz
Writer: Karin Connelly
shaker launchhouse raises $15k in the name of entrepreneurship
Shaker LaunchHouse raised $15,000 at its second annual gala, held last week at Crawford Galleries of Western Reserve Historical Society. The money will help support Cleveland’s budding entrepreneurs. More than 260 attended the event, which was sponsored by the Shaker Heights Development Corporation.
 
“It was huge,” says LaunchHouse co-founder Todd Goldstein. “There were entrepreneurs, business leaders, successful CEOs of companies and people from the city of Shaker Heights. We even had people who flew in from out of state. It was a broad range of people supporting the entrepreneur community.”
 
The money will be used to support LaunchHouse startups and for programming. Specifically, Freebie Fridays, when people can come into the offices to work and pitch their ideas, will continue. LaunchHouse will also continue its support of the LightHouse Entrepreneurial Accelerator Program (LEAP), a program targeted at high school students.
 
Goldstein points out that LaunchHouse staff will assist anyone with an idea. “We never turn an entrepreneur away,” he says. “If an entrepreneur shows up at our door, we’ll work with them. And we’ve helped hundreds of small business owners who come in on Thursdays for open office hours and one-on-one business advice from our team members.”
 
Since its founding in 2009, LaunchHouse has invested in more than 40 companies, with more than 100 working directly out of LaunchHouse.
 
“Our advanced goal is to be an idea hub in the region,” says Goldstein. “Seeing that many people come out really is a testament to all the entrepreneurial activity happening in Shaker Heights.”
 
Stephanie Colangelo, director of public relations and marketing, adds that LaunchHouse has a solid relationship with other entrepreneurial support organizations. “If something is not necessarily for LaunchHouse, we direct them to JumpStart or Bizdom,” she explains. “And they do the same for us.”

 
Source: Todd Goldstein, Stephanie Colangelo
Writer: Karin Connelly
cleveland named by msn as 1 of 10 coolest cities in the midwest
In an MSN slideshow titled “10 coolest cities in the Midwest,” Chelsea Lin proclaims our fair city of Cleveland as one of them due to its musical history and art.  Oddly enough, nothing about the phenomenal dining scene is mentioned as a factor of coolness.
 
In proclaiming what’s cool: “There’s more than just rock ’n’ roll culture at play. The Museum of Contemporary Art, Cleveland’s brand-new mirrored digs, is a lesson in modern art itself, a stunning piece of interesting architecture.”
 
Read the full blurb and check out the other cities on the list here.