SEA Change to Launch New Social Enterprises

Spring2014
News about Northeast Ohio’s Emerging Sustainable Economy from The Generation Foundation
SEA Change to Launch New Social Enterprises
S
ocial enterprises – those hybrid business ventures that serve
the public interest and make money – are hard to start, difficult to run and notoriously short-lived.
Determined to create an easier path for these entrepreneurs, SEA
(Social Enterprise Accelerator) Change is a collaboration of existing
organizations that bring together expertise in launching, supporting and financing start-ups, advancing nonprofits and engaging the
community.
Current partners include LaunchHouse, ECDI, ideastream, CEOs
for Cities, BVU, Center for Nonprofit Excellence and others.
Funding operations so far are the Business of Good Foundation,
The Generation Foundation, The Burton
D. Morgan Foundation and the George
Gund Foundation.
sea change
xx“The collaborative initiative will
n. a profound
transformation.
transform big ideas into social enterprises
Shakespeare,
that improve communities,” said Mike
The Tempest
Shafarenko, Director of Civic Commons
ideastream, and coordinator of the project.
“Through coaching, connections and
capital, SEA Change enterprises will be equipped with the tools and
networks start-ups need to generate social and economic impact.”
By the end of this year, SEA Change plans to conduct a series
of training, mentoring and networking sessions for aspiring social
entrepreneurs that will:
connect aspiring social entrepreneurs with a network of experts
(lawyers, accountants, fundraisers) and mentors
solicit and review applications for investment
conduct a Pitch Day where the most promising ideas present to
an audience of potential investors, grantors and mentors
•
•
•
Fledgling entrepreneurs, often still in college or even high
school, are supported with the incubation and mentoring skills
of LaunchHouse. Not only do they receive space for operations,
necessities like copy machines, computers and office furniture;
they are tutored in the realities of business start-ups by professionals who have been there and done that.
grant pooled funds (those funds contributed to SEA Change by
•
various donors intended as grants for social enterprises) to a select
number of start-up entrepreneurs, and
provide mechanisms through mentorship and hands-on support
for ongoing operations.
“By year end, SEA Change will produce at least three social enterprises that have a high probability of impacting the community and
have a sustainable business model,” said Tim McCarthy, founder
of the Business of Good Foundation, the major project funder.
For more information, contact Mike Shafarenko at
[email protected].
•
EDWINS Leadership and Restaurant Institute, Cleveland’s only nonprofit restaurant, just graduated its first class of 25 formerlyincarcerated students. As a social enterprise, its goal is to train men and women for long-term careers in fine dining, thus inspiring
the next generation of Northeast Ohio’s culinary leadership. EDWINS, located in Shaker Square, conducts a six-month curriculum
that includes both classroom instruction and working in all aspects of the restaurant. Graduates are then placed in long-term positions at some of Cleveland’s finest restaurants.
NorTech, Water Alliance See 3,500 New Technology Jobs
S
ince the infamous 1969 Cuyahoga River fire, Northeast
Ohio has earned a reputation for developing technologies
to clean and treat polluted water.
Now, a Greater Cleveland innovation cluster has emerged that
is focused on developing technologies to address risks to the environment from water contaminants generated by industrial water
cleaning and treatment, hydraulic fracturing, combined sewer
overflow and storm water runoff.
Two nonprofit think tanks are spearheading these advances:
NorTech and The Cleveland Water Alliance. NorTech has identified the region’s water technology assets via its road mapping
process to target sectors for growth and job creation. The most
promising technologies are automation and control, sorbents and
water system corrosion protection.
“These three sectors have the potential to create about 3,510 net
new jobs in Northeast Ohio by 2019, “said Rebecca O. Bagley,
president and chief executive officer of NorTech.
As of 2012, Northeast Ohio had 54 organizations with core technologies in these three sectors. They accounted for approximately
338 employees and $72 million in revenue in 2011.
Of particular interest to the region is the application of its
strengths in water remediation, control and corrosion resistance to
shale gas development. NorTech’s roadmap process has indicated
that the available market for sorbent systems and related components was about $1.2 billion in 2012 and could exceed $2 billion
by 2019.
Last month, the Cleveland Water
Alliance appointed Bryan Stubbs as
the first executive director. Stubbs
brings a wide range of experience
that spans entrepreneurship, academia and economic development.
“I look forward to leading The
Cleveland Water Alliance, which is
not only focused on water quality,
but promises to create economic
prosperity in the region,” said
Stubbs
Stubbs. “We have the full array of
ingredients for success – natural resources, corporations, nonprofits, academic institutions and public agencies willing to work
together to create a water technology cluster that will result in great
things for this region. I plan to usher this amazing organization to
the next level.”
NorTech and the Alliance have worked hand-in-hand to host and
co-sponsor educational events focused on the region’s water technologies cluster. The team effort aims to help the region increase
its footprint in the industry both domestically and internationally.
The Cleveland Water Alliance is a group of corporations, academic institutions and public agencies working collaboratively to
create a thriving economy around the global needs of water quality
and access. Initial partners are Case Western Reserve University,
the Cleveland-Cuyahoga County Port Authority, The Cleveland
Foundation, Cleveland Metroparks, The Cleveland Museum of
Natural History, Cleveland State University, Fairmount Minerals,
the Great Lakes Science Center, Hiram College, Kent State University, MAR Systems, NorTech, and the Northeast Ohio Regional
Sewer District. Initial funding was provided by the partners and
The Generation Foundation, the George Gund Foundation, the
Lennon Foundation and the Burning River Foundation.
Sorbents can absorb up to 25 times their own weight in petroleum spills.
Convenient, lightweight and cost-effective, they are also effective in soaking up petroleum-based solvents and paints, vegetable oils and other nonwater soluble chemicals.
Port of Cleveland to Support New
Municipal Energy Efficiency Plan
In a first-of-its-kind initiative, the Port of Cleveland will support Retrofits for the ENergy Efficiency Works (RENEW) program.
Using tax-exempt lease financing and technical assistance for energy
conservation measures, municipalities throughout Cuyahoga County
can upgrade older, energy-inefficient facilities – a move which would
otherwise have been financially difficult.
“The RENEW program is proof of how we can increase energy
efficiency and draw investment to Cuyahoga through smart, forwardthinking planning,” said U.S. Senator Sherrod Brown.
A joint effort of Emerald Cities-Cleveland, Cuyahoga County
Government, the Port of Cleveland and Public Finance & Energy
Advisors LLC, the program ensures low-cost, off-balance- sheet financing options for energy upgrades, as well as increasing operating cash
flow and contract transparency and accountability, using third-party
monitoring and verification and contractor performance insurance.
“RENEW will provide hands-on technical assistance to Cuyahoga
County municipalities and put county residents to work in the process,” said RENEW Program Director, Shanelle Smith.
“A partnership of this kind is rare, and will make communities more
energy efficient,” she added.
The nonprofit Emerald Cities-Cleveland receives foundation support
from the Joyce and Generation Foundations.
Will Friedman, President & CEO of the Port of Cleveland, says
it is a natural fit for the Port to support the RENEW pilot program
because it complements the Port’s financing programs as well as the
organization’s commitment to protecting the environment.
The Port’s staff has spoken to several municipalities that are
interested in financing these energy improvements via the RENEW
program and the Port, and is optimistic that an initial pilot transaction will start shortly.
“We are a Green Port on a Great Lake, and we are committed to being an environmental steward of Cleveland Harbor and the Cuyahoga
River,” Friedman said.
David Dombrowiak Elected to
Generation Foundation Board
By permission of Gary Brookins
Employee Loan Solutions Plans
Low-cost Payday Alternative
How does a 391% APR short-term loan strike you? That’s the average rate a borrower can pay at those storefront payday loan operations you see on Prospect Avenue or W. 25th Street.
The typical storefront payday loan rate in Ohio is $15 for every
$100 borrowed, due in a balloon payment in two weeks or less. This
structure makes it virtually impossible to pay back the principle
amount borrowed in that time frame, let alone the interest and fees.
The result? Most borrowers purchase an additional loan as soon they
pay off the original loan, creating a cycle of debt.
Employee Loan Solutions (ELS), an innovative asset building firm,
wants to change this by helping employed people receive credit
through a safe and affordable loan. Working in partnership with
Neighborhood Housing Services of Greater Cleveland, ELS will
offer its True Connect loan product, designed to help rebuild credit
and offer affordable payments that are automatically deducted from
the employee’s paycheck.
“This is designed to be an employee benefit that employers do not
pay for,” said David Rothstein, Director of Resource Development
for NHS. “Employers are not liable or responsible for the loans,
since they only provide the gateway to this product.”
True Connect is only offered to employees with direct deposit,
more than five months tenure, and the ability to repay the loan
based on gross wages. The interest rate complies with Ohio law for
short-term loans, well under 28 percent APR. Additionally, positive repayments (made through auto-deduction of the paycheck) are
reported to the credit bureau to help families either rebuild damaged credit or start a credit history. Loan options include $1,000,
$1,500, and $2,000 increments with no employee being eligible for
more than 8% of their gross pay and no more than $3,000 borrowed
at any given time. NHS provides financial capability counseling and
support for accepted and non-accepted borrowers free of charge.
Grants from the Cleveland Foundation and Business of Good
Foundation allow NHS to offer financial capability counseling,
marketing and evaluation of this new program. The program is
sustainable through the committed technology of ELS and the
marginal interest charged on the loans. This loan program links
employee benefits, health, lending and financial counseling in one
place — something not done up to this point. The pilot site and
program will begin in early summer of 2014. Interested workplaces
should contact David Rothstein, Director of Resource Development
for NHS, at [email protected].
David T. Dombrowiak, President and CEO of Community West
Foundation, has been elected as a Trustee of The Generation
Foundation.
Under his leadership, Community West,
a $100 million philanthropic organization, has made over $61 million in grants
supporting organizations that provide the
basic needs of food, clothing, shelter and
medical care to the neediest in and around
Western Cuyahoga County. Dombrowiak
has led the organization for over 15 years.
For the previous 14 years he was President
and CEO of St. Francis Health Foundation.
Dombrowiak
Recognized for his innovative and entrepreneurial skills, he has received numerous awards for philanthropy
and leadership, both locally and nationally.
Formerly a Trustee of The Generation
Foundation. Heather B. Moore has been
elected to the organization’s Advisory
Board, a group of 22 community business,
academic, philanthropic and public sector
leaders that critique proposals before grants
are made and advise the Board on specific
areas of potential funding. She is the owner
of Heather B. Moore Jewelry.
Moore
New Solar Power Installations
Edge Closer to Grid Parity
Parity — the Holy Grail of solar — is when it becomes cost-competitive with grid-supplied electricity on a levelized cost basis. It’s also
the point when solar becomes a real contender with conventional
energy generation in a market — and it’s happening in Germany,
Italy, California, Hawaii and now New Mexico.
One company, Conergy, says it is installing photovoltaic (PV)
projects in New Mexico at parity with grid-based electricity. Two
high schools in Rio Rancho, N.M. have 1.2 megawatt solar to power
installations.
“In many regions of the U.S.A., grid parity has been achieved for
end consumers, and solar power is already considerably cheaper
today than power from the grid,” says Conergy U.S. Managing Director Anthony Fotopoulos.
An increasing number of analysts think that PV is coming into
parity in more of the U.S. and the world at large. Conergy says it’s
already installed PV systems at parity in South Africa, Spain and
Italy. The company anticipates that it will install more at-parity projects in the U.S. in coming months. The New Mexico systems will
reach parity through 20-year power purchase agreements (PPAs) with
Washington Gas Energy Systems, which is financing the systems.
“Local consumption via power purchase agreements is the future
of the American electricity market,” Fotopoulos says.
Describing the payoff to one large power consumer, Al Sena, Rio
Rancho Public Schools building manager, said that with the new
solar installation, he can cover about 80% of their total annual
power requirements while cutting electricity costs at the same time –—
without a major upfront investment.
PPAs are being used by many companies and homeowners to invest
in solar with no up-front cost and at a price often at levels below the
grid. The electric price is then guaranteed for years to come. But
most of these PPAs also rely on a number of incentive programs that
reduce the cost of solar. In New Mexico for instance, such incentives
include tax credits and performance-based incentives. As the price of
solar technologies continues to come down, these projects will be at
parity with the grid — without incentives.
– Renewable Energy World
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Lake Erie Gets Some Love; Cleveland Takes Back Its Beaches
I
t’s a dirty job, and somebody
finally did it. Over 1,500 Greater
Clevelanders got their hands dirty
and feet wet cleaning up our beachfront last year. And if you have some
free time this summer, you can too.
Run by the Adopt-a-Beach™
program, 58 teams of volunteers
from organizations like CWRU,
Forest City Enterprises and Hathaway Brown School collect litter and
conduct beach health assessments,
including water quality testing.
Collaborators in recent projects
include the Cleveland Metroparks, Friends of Edgewater
Park, and Drink Local. Drink Tap, Inc. Working on a recent
water quality and beach heath project, they brought in better
trash receptacles and erected educational signs in visible
locations.
These same partners also collaborated on a grant funded by
The Cleveland Foundation for the
successful 2013 pilot of the Urban
Beach Ambassador program
Over 13,000 supporters across the
Great Lakes region do similar work,
all coordinated by the Alliance for
the Great Lakes.
“For six years the Alliance has
partnered with the Mayor Frank G.
Jackson Summer Youth Employment Program,” said Hyle White
Lowry, Ohio Outreach Coordinator. “Working with the Cleveland
Division of Water, we engage youths
from the city of Cleveland in our Adopt-a-Beach™ program
throughout the summer at the lakefront.”
You and your organization can get involved with the Alliance
and its Adopt-a-Beach™ program by contacting Hyle White
Lowry at [email protected] or 216-630-8140. To learn
more, go to www.greatlakes.org or www.greatlakesadopt.org.
The Generation Foundation is a grant-making public charity working cooperatively to build a sustainable regional economy. 3375 Hollister Rd., Cleveland, OH 44118;
(216) 371-0289; Fax (216) 321-1431; www.generationfoundation.org. Peter K. Ranney, President; Glenn R. Brown, PhD and David T. Dombrowiak Vice Presidents. Robert
Miller, Executive Director and Secretary/Treasurer. Advisory Board: Larry Benders, John Colm, Beau Daane, Allen H. Ford, Robert T. Heath, PhD, Edward W. Hill, PhD,
Trevor O. Jones, Wendy Kellogg, PhD, Lillian Kuri, John Mitterholzer, David T. Morgenthaler, Heather B. Moore, John C. Morley, Hunter Morrison, William C. Mulligan,
Gary A. Oatey, Paul Oyaski, Steven W. Percy, Luis M. Proenza, PhD, William R. Seelbach, Richard Stuebi, Andrew Watterson and John D. Wheeler.

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