Sunday, February 24, 2008

BlueBridge Networks as Development Catalyst

One of my fondest memories as an entrepreneur were the early days at BlueBridge Networks when the four original founders were conducting business literally around a card table with four cell phones and four laptops. At our backs was a 20,000 square foot data facility – one of the finest built during the great Internet expansion prior to the dot.bomb meltdown in 2001. The four original players at BlueBridge – Dan DeSantis (now with Cisco), Michael Bennett (now with Asurint), Neil Adelman (still El Presidente of BlueBridge) and myself (I am chilling these days at FIT Technologies). Of course, there were some great investors as well – but they would rather remain nameless. But great men nonetheless.

These were exciting days, my friends, as we were trying to turn on a facility that had been down for almost three years at that point and make it a profitable venture. The stress was a bit overwhelming at time, but the days were always rewarding. I believe our first big executive decision was leasing a copier – but more important decisions loomed. I left BlueBridge to assume the “tech czar” role under then Mayor Jane Campbell. But I always had a special place in my heart.

Truth is BlueBridge started the tech revolution in Playhouse Square. There were few tech companies in Playhouse Square at the time, but after the start of BlueBridge a whole slew of tech companies and their employees joined this growing area of town – Pantek, Foundatia Technologies, Platform Lab, Easy2 Technologies, Pathfinder, SchoolOne/FIT Technologies, ASM International, JurInnov, Thommen Medical, Asurint, e-Ventus, Bounty Technologies, ASMGi, Intellinet, Game Communications, Cleveland365.com, Portfolio Magazine Online, Lendable.com have all spent time or call Playhouse Square home after BlueBridge started. BlueBridge Networks is the perfect example of company building an industry cluster. BlueBridge is a tenant in the Sterling Building – and in just the Sterling Building alone prior to BlueBridge starting the building was at a 56% occupancy rate. The Building now enjoys an 85% occupancy rate and counts five tech companies as its tenants. Over 600 employees – just in this one building alone. Amazing.

BlueBridge has had a profound effect on Playhouse Square and, yes, the City of Cleveland. This is a perfect example of why we should be investing in tech-based start-ups and then clustering them in a tight geographic expanse. These tech companies then act as a magnet for other like-minded tech companies. It is a wonderful occurrence.

Posted by Tech Czar at 22:10:39 | Permalink | No Comments »

Tuesday, January 15, 2008

A Plan to Grow Cleveland’s Tech Industry - Part IV

The best part of my tenure at the City of Cleveland was recruiting companies to relocate into the City. Hard work, but worth the sweat. When I started at the City there were more than a few people who gave me the cold, hard advice that I would never be successful  (one would be surprised by how many political “elites” told me that as well, makes you think where their heart really is regarding Cleveland). Truth is Cleveland is a great asset to sell.

Not to say that selling Cleveland did not have its challenges. More often than not I would approach or contact a Company and talk about the virtues of Cleveland and I would get the response, “Cleveland? You’re freaking kidding me, right?” To which I would respond, “Just give me a few hours and let me show you a few properties that are going to knock you out.” Lucky for the City, we are blessed with great architecture (most of which needs a little “TLC” but is so impressive when compared to suburban office spaces). And would you believe that we were successful in bringing in 36 tech companies into the City. The good tech entrepreneur loves the City and is a good friend of Cleveland. (Search for the recent article on the success tech in Cleveland as printed on the front page of the PD – and do me a favor, spread the gospel to your friends and family.)

Anyway, the core of my policy at Cleveland was to recruit and to develop a continuum of real estate that offered a selection of pricing and space to tech entrepreneurs. Also, upon reflection of my old development plan was, in fact, the creation of an “IT Cradle” that spanned west to east along Euclid and Carnegie Avenues. Just a reminder of the development plan I put together for the technology sector in Cleveland. The five proposed policies of this plan were:

      I.        The Cleveland Technology Center (“CTC”) – A collaborative hub of thought and development that becomes the centerpiece of Cleveland’s investment in the tech industry. This is a physical space, a state-of-the-art tech-based facility.
     II.        The Cleveland Ventures Fund (“CVF”) – A technology-centric fund that will invest in promising technologies, partnerships within the City of Cleveland. Goal was to secure $100.0 million to be invested in Cleveland-based tech-companies.
    III.        The “Information Technology” Cradle – Creation of special zones along Euclid, Superior and Carnegie that allow for heavy concentration of tech companies and new real estate development.
   IV.        Cleveland Municipal Schools Tech Vision – The Mayor’s Office and the CEO of the Cleveland Schools creating a special tech-based curriculum for top students.
    V.        “Tiger Teams” – A specialized group formed to target middle-market tech and biotech firms and assist them with the relocation of their corporate headquarters or R&D facilities to the City of Cleveland.

The original goal of the “IT Cradle” was to remove blight along the Euclid and Carnegie Avenue from Downtown to University Circle with new tech companies being placed in older buildings that merited new life and vigor. The hope was to target regional and national tech firms and offer economic incentives and build-out allowances to relocate into the City. I have always found Euclid and Carnegie Avenues to be rich with potential and could be our very own “Silicon Avenue.” And based upon personal experience – this is a very doable policy. My fear is that the City overlooks the success it has had in tech and will not continue to heavily recruit the next generation of Cleveland companies.

Of course, it needs to be a coordinated effort with the City leading the charge and working closely with its partners – Greater Cleveland Partnership, TeamNEO, JumpStart, NorTech and BioEnterprise. Based upon my experience Cleveland should be bursting at the seams with tech, biotech and medical device companies. The best incentive – truth be told – was not the economic incentive offered by the City (or any other organization) but the operational incentives that the City is blessed with. And by that, I mean the large fiber connections in Downtown (largest fiber pipe between New York and Chicago is resident under Euclid Avenue) and all the assets that have been built around this pipe – the various data-centers, telecom switches, network-operating centers and other tech companies. We have a natural asset (i.e. – the fiber) in which to build a national powerhouse in technology. Now let’s use it.

Posted by Tech Czar at 04:11:26 | Permalink | Comments (2)

Tuesday, January 1, 2008

A Plan to Grow Cleveland’s Tech Industry - Part I

It has been nearly 90-days since I decided to resign my post as “Tech Czar” at the City of Cleveland and I was reflecting upon my time in the civic realm. A few days past I was going through a few boxes of notes, reports and other personal effects when I came across a presentation that I had put together prior to me interviewing for the post. Some quick history here, my first interview for the “Tech Czar” role was January 7th, 2002. This was soon after Mayor Campbell won in November of 2001. I interviewed twice with Tim Mueller – who was about to become Campbell’s Chief Development Officer. I did not get the job the first time around – the original “Tech Czar” was Tim Moran now at the Cleveland Clinic.

The presentation struck a chord with me, however. Remember, I wrote this presentation in late 2001. (And, in fact, when I interviewed for the post again in 2004 I used the same presentation I did two years prior.) The presentation offered a plan to create a new office within the economic development department called the Office of Technology and Innovation. This Office would then be given the goal of developing an economic environment that would be willing to initiate risk and accept reward; foster a “cycle” of education, creation, commercialization and capital market acceptance of local technology. And thus, create five programs – which I will detail in a moment – that establish Cleveland as a model of private and public partnership; a “case-study” in successful deployment and nurturing of a fledgling technology industry in Cleveland.

The five proposed policies or programs were:

      I.        The Cleveland Technology Center (“CTC”) – A collaborative hub of thought and development that becomes the centerpiece of Cleveland’s investment in the tech industry. This is a physical space, a state-of-the-art tech-based facility.
     II.        The Cleveland Ventures Fund (“CVF”) – A technology-centric fund that will invest in promising technologies, partnerships within the City of Cleveland. Goal was to secure $100.0 million to be invested in Cleveland-based tech-companies (and by the way, if Ann Arbor, MI can find $100.0 for tech-based investments then certainly Cleveland could do the same).
    III.        The “Information Technology” Cradle – Creation of special zones along Euclid, Superior and Carnegie that allow for heavy concentration of tech companies and new real estate development.
   IV.        Cleveland Municipal Schools Tech Vision – The Mayor’s Office and the CEO of the Cleveland Schools creating a special tech-based curriculum for top students.
    V.        “Tiger Teams” – A specialized group formed to target middle-market tech and biotech firms and assist them with the relocation of their corporate headquarters or R&D facilities to the City of Cleveland.

I still believe that this plan is just as relevant today as when I first proposed it nearly six years ago. Over the coming weeks, I will be adding some detail on each policy/program, why it did or did not work and current strategies in place by other groups. I will try to be as exhaustive as I can be in the detail. I would like to hear commentary from as many people as possible on this plan and others (I have never thought mine was gospel or the only answer). At the end, though, I believe I will have offered a comprehensive plan that could propel the City as a key national player in the tech and biotech sectors.

Posted by Tech Czar at 22:42:55 | Permalink | Comments (6)

Tuesday, September 4, 2007

Thank You, Cleveland! (I hope to see you again, soon.)

Good-Morning Everyone:

I wanted to send out a very heartfelt thank-you for all your support these last few years. As many of you may know, I will be leaving my post at the City of Cleveland to join SchoolOne – a tech company located in Playhouse Square. This was a difficult decision. My tenure at the City was incredibly robust, challenging, invigorating – never has one professional post meant so much to me. I was truly living the dream. Who would have thought that over the last three years more than 30 tech companies would have decided to call the City of Cleveland home or that we would have built out nearly 450,000 square feet of the most provocative office space on the planet, or that the City would welcome over 800 new employees to the City? And I am happy to report that there are a handful of companies nearing a decision to join us – in the best City in the world – to continue the tech renaissance that is happening right in the center of Cleveland .

The tech industry must make a commitment to Cleveland and the City must make technology development and on-going exercise. We could have our own mini-Silicon Valley along Euclid Avenue, West Ninth and Superior Avenue (these are the streets were most of the new tech companies have decided to take roost) – the seeds are there and the soil is tilled to make it so. I ask - will you make this commitment? I have. Many of your compatriots have and I hope that all of you will join me in solidifying Cleveland as the next new tech hub for the U.S. and beyond. Don’t scoff – it is very conceivable that this could happen. Don’t let the negative vibe merchants tell you otherwise. They are wrong. And we, my friends, are right. We are the next best hope for a bright and rich future for this city. It is the creative class and the entrepreneurial class that are going to propel this City to its rightful place of national prominence.

We must demand a new paradigm of capital (both human and financial) from the institutions around us (i.e. – the foundations, the banks, the equity funds, the colleges and universities, the various economic development institutions, our government). We, as the collective creative and entrepreneurial class, must demand the championship spirit that defines us from these institutions as well. We must demand attention and loyalty from them, too. It is our manifest destiny to make Cleveland enjoy a new bounty. We must have more tech companies bless our buildings downtown. It is the clustering of tech companies in a tight geographic constraint that spurs all sorts of wonderful things (tinkering, collaborating, inventing and the like). Downtown is ready for you. Please stay connected with me. I have enjoyed talking to each and everyone of you and consider all of you my friends. My personal contact information is:

Mobile :             216.212.4067

E-Mail               mdealoia@mac.com

I hope we can all stay in touch and talk shop. Many, many thanks for allowing me to work with you.

Regards,

Michael C. DeAloia

Post-Scipt: I will continue to write my blog and look forward to a healthy dose of dialogue and debate. Rock on, Cleveland!

Posted by Tech Czar at 18:02:01 | Permalink | No Comments »

Thursday, May 10, 2007

The Euclid Turn

We have to make Euclid Avenue the prestigious address it once was. I believe this. It is mission critical in making Cleveland a successful venue for business and for living. This past Monday I had a great meeting with a life sciences company that has made the choice of moving into Cleveland. While not at liberty this precise moment to disclose the company I met, I can say that during the meeting the representatives of the Company mentioned that they are negotiating a lease at the Baker Buidling (located on E. 71st and Euclid). I have been aware of this key development for quite some time. The venue is being developed by Dick Pace, one of the nicest and most honorable chaps in the real estate biz. After the meeting (and when I can announce it I suspect it will get significant attention) I decided to drive from University Circle down Euclid back into downtown. 


If you haven’t driven this way in awhile (and given the massive construction on Euclid I would not blame you if you decided on other routes), you may want to give it a go. There is something happening on Euclid that I believe is going to transform this City. The drive cemented a key fact and that is there are pockets of development occuring on the street from University Circle through Midtown. These pockets of development are occuring outside the view of the press and most of the population of this fine city. But everyone will know soon enough.

As I made my way to Pace’s development on Euclid I has amazed (to be honest quite thrilled). He has transformed a worn building into a wonderful development that I suspect will begin an amazing transformation from E. 71st going east to the Cleveland Clinic campus. The fact that Pace has two clients already in the building and a third on the way should give legitimacy to the fact that business and development can thrive in Midtown and better yet on Euclid Avenue.
Posted by Tech Czar at 02:33:25 | Permalink | Comments (1) »