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Making Strides: Strides of CNY opens new location. Page 3.

Special Report: Technology & Innovation.

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Vol. XXVII • No. 7

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Oberdorfer Aluminum Foundry closing after nearly 140 years

Small-business optimism posts another low reading for January BY RICK SELTZER JOURNAL STAFF

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See OPTIMISM, page 8

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February 15, 2013 • $2.00

CNYBJ.COM

mall-business owners remained largely downcast in January amid poor earnings and even weaker expectations for the future of the economy, according to an index of their optimism released Feb. 12. The National Federation of Independent Business (NFIB) published a monthly Small Business Optimism Index that gained 0.9 points to 88.9. It was the second month in a row the index increased by less than a point — it inched 0.5 points higher in December — after tumbling 5.6 points in November. It was also one of the lowest readings in the index’s history, according to the Washington, D.C.–based NFIB. Of 10 components making up the index, six languished in negative territory. Economic expectations and earnings were the biggest drains on the index. The seasonally adjusted net percentage of business owners antici-

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BY RICK SELTZER JOURNAL STAFF

PHOTO COURTESY OF WELCH ALLYN

A Welch Allyn PanOptic Ophthalmoscope is used on a patient. The product allows users to snap high-resolution images of the eye using an iPhone and an accompanying app.

away for consultation, which gives the product obvious uses in areas where eye-care professionals aren’t present. But the company sees broader potential for the iExaminer, which received approval from the U.S. Food and Drug Administration in December, says Rick Farchione, senior manager for physical assessment at Welch Allyn. Viewing the back of the eye with an ophthalmoscope is one of the more challenging tasks physicians perform, Farchione explains.

DeWITT — Business conditions cooled at Oberdorfer Aluminum Foundry, LLC until the company decided it had to cease its flow of molten metal forever. The DeWitt aluminum-casting manufacturer will shutter its plant at 6259 Thompson Road, it said in a Feb. 7 filing with the state Department of Labor. Oberdorfer set its closing for May 3 — a closing that will leave 86 employees without jobs. It will also end production at a foundry dating back to 1875. Oberdorfer began as a bronze foundry before starting aluminum-casting production early in the 20th century, according to

See WELCH ALLYN, page 5B

See OBERDORFER, page 4

Welch Allyn device harnesses iPhone camera for eye exams BY KEVIN TAMPONE JOURNAL STAFF

SKANEATELES FALLS — At first glance, Welch Allyn’s new iExaminer may seem squarely aimed at remote markets. The product allows users to snap high-resolution images of the eye using an iPhone and an accompanying app. A hardware adapter attaches the phone to Welch Allyn’s PanOptic Ophthalmoscope. Users can store the images, print them, or email them to an expert thousands of miles

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2 • The Central New York Business Journal

CNYBJ BRIEFS

February 15, 2013

Berkshire expects CNY growth part of the bank’s strategy. The Beacon deal also helped Berkshire build its presence in eastern Massachusetts with the addition of   eaders at Berkshire Hills the Chelmsford location, he said. Berkshire is expecting cost savings re  Bancorp,  Inc. (NYSE:  BHLB) see   room for growth in the year ahead lated to the Beacon Federal deal of 30 perin the banking company’s new Central New cent, Berkshire Executive Vice President and CFO Kevin Riley said during the call. York footprint. Berkshire Hills, parent of Berkshire The bank will reach that goal after Beacon Bank, first entered the Central New York Federal completes a conversion of its bankmarket in 2011 with its acquisition of Rome ing system in March, he added. Berkshire Hills cut 11 jobs following the Savings Bank. The company then closed on a $132 million acquisition of DeWitt– Beacon Federal deal. Beacon Federal had based Beacon Federal Bancorp (NASDAQ: about 130 employees before the acquisition. BFED) last October. For the fourth quarter, Berkshire Hills The moves give Berkshire access to a market with a total population of about earned $9.3 million in the fourth quarter, 700,000, Berkshire Chairman and CEO up from $8.5 million a year earlier. Earnings per share for the period Michael Daly said durtotaled 38 cents, down ing a Jan. 29 conference from 40 cents in the call on the bank’s latest fourth quarter of 2011. quarterly results. Excluding the efBeacon Federal had QUARTERLY REPORT fects of acquisition about $1 billion in asand system conversion sets and seven branches in DeWitt, East Syracuse, Marcy, and costs, Berkshire earned $13.2 million, or 54 Rome, as well as Smartt, Tenn., Smyrna, cents a share. For the full year, Berkshire earned Tenn., and Chelmsford, Mass. The Rome and Syracuse markets together now form $33.2 million, or $1.49 per share, up from $17.3 million, or 97 cents a share, in 2011. Berkshire’s Central New York region. Berkshire previously announced it Excluding acquisition and system converwould divest Beacon Federal’s Tennessee sion costs, the company earned $44.2 million, or $1.98 per share, in 2012. branches. “We’re pretty focused on the challenges Daly said Berkshire recently added a new commercial leader for the Syracuse and opportunities in front of us in the new market, which he added was an important year,” Daly said. “And I think the indusBy Kevin Tampone Journal Staff

News of note for and about Central New York businesses

Lattimore Hall, Auburn

Lattimore Hall in Auburn sold for $3 million AUBURN — Hemisphere Holdings Corp., a Syracuse–based commercial real-estate firm, recently announced that it arranged the sale of Lattimore Hall, a housing complex for Cayuga Community College students in Auburn. Piccolo Properties, LLC of Auburn sold the property, located at 81 Genesee St., to an undisclosed buyer for $3 million. The deal closed on Dec. 31, according to Richard L. Will, president of Hemisphere Holdings. Lattimore Hall has 99 beds in 20 suites. Each suite includes either three, four, or six bedrooms.

Mirbeau tabs Syracuse native to oversee expansion in Massachusetts SKANEATELES — Mirbeau Management Co. LLC has snagged a Syracuse native from a job in North Carolina to be its president — but he’ll be living in Massachusetts. Mirbeau, which operates the Mirbeau Inn & Spa in Skaneateles, hired Tom Abbott as its president. Abbott had been CFO of The Grove Park Inn Resort & Spa in Asheville, N.C. since 2005. He will live in Plymouth, Mass. to oversee the opening of a new Mirbeau Inn & Spa branch slated to open there. It will be called the Mirbeau Inn & Spa at The Pinehills and is scheduled to open in the spring of 2014. “We are pleased to have Tom on board to help us with asset management of the growing number of Mirbeau properties,” Gary Dower, a founder of the Mirbeau Management Co. who is its principal owner, said in a news release. “His expertise and experience in the hospitality industry will be a substantial benefit to our organization during this period of growth and success.” Abbott has 20 years of experience in the hospitality sector. Before working at The Grove Park Inn Resort & Spa, which generates more than $75 million in revenue annually, he was director of finance at The Lodge at Rancho Mirage in Rancho Mirage, Calif. Abbott’s résumé also includes stints as the vice president of finance for The Homestead in Hot Springs, Va. and Barton Creek Club & Resort in Austin, Texas, regional controller for ClubCorp International, and corporate controller at Stratton Mountain Resort in Stratton Mountain, Vt.

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try challenges are pretty widely agreed on: margin pressure due to low rates and business volume uncertainties due to an uneven economy. “But by positioning ourselves strategically and reacting flexibly, we believe that we’re prepared to deal with those challenges.” Berkshire has assets of $5.3 billion and 75 branches in Massachusetts, New York, Connecticut, and Vermont. Deposits at the end of the year totaled $4.1 billion, up from $3.1 billion at the end of 2011. Loans totaled $3.4 billion, up from about $3 billion. q Contact Tampone at ktampone@cnybj.com

Solvay Bank unveils mobilebanking applications By Journal Staff

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SOLVAY — Solvay Bank booted up a new set of mobile-banking offerings this month. The bank, which has a main office located at 1537 Milton Ave. in Solvay, launched a mobilebanking platform Feb. 8. It allows customers to bank using text messages, mobile Internet browsers, or apps for iPhones and Android phones. Customers can use the platform to access account information like balances or transfers. They can also pay bills, schedule personto-person payments, and locate a Solvay Bank office or ATM. Plans are in place to add mobile features in the future. Solvay Bank wants to be able to send alerts to notify customers when balances fall below a specific threshold, when checks clear, and when deposits are made. “We are very excited to offer mobile banking to our customers,” Solvay Bank President and CEO Paul Mello said in a news release. “Mobile banking provides individuals with a time-saving, secure platform to pay bills and keep track of their finances. It is important to us that we have a robust mobile product to offer, one that meets the needs of our clients.” In addition to its main office, Solvay Bank has seven branches in the Syracuse area. It reported third-quarter earnings of $1.6 million and had $591 million in deposits at the end of October. The bank also owns Solvay Bank Insurance Agency, Inc. q


The Central New York Business Journal • 3

February 15, 2013

Strides of CNY jogs business with new location BY RICK SELTZER JOURNAL STAFF

SYRACUSE — Strides of CNY, LLC stepped into a new location in the city of Syracuse at the end of January. The strength and conditioning firm moved into 4,800 square feet of space at 738 Spencer St. It gained more space in its relocation — and it proceeded into a more central location. “We’ve got all these local businesses in the area,” says Michael Derecola, owner of Strides and its head strength and conditioning specialist. “We have Syracuse University, we have Le Moyne College. We have soccer centers that are closer, the Syracuse Soccer Academy right up the road, and the mall’s nearby. There’s a lot of traffic in this area.” Before moving, Strides was at the CNY Family Sports Centre at 7201 Jones Road in Van Buren. It leased about 4,000 square feet of space there. Its new space has a lounge with a refrigerator, microwave, and blender for athletes. It also offers a different feel, according to Derecola. “I think what we wanted to do was provide a more private environment with more space to do what we wanted and to cater to a population that’s interested in what we do,” he says. What Strides caters to is a wide range of athletes, athletic hopefuls, and fitness buffs. The firm’s clients range from elementaryschool students — children ages 8, 9, and 10 — through college athletes, professional athletes, and older adults in their 30s, 40s, 50s, and 60s. Professional athletes who train at Strides

Michael Derecola, Strides of CNY, LLC owner and head strength and conditioning specialist, moved his company to 738 Spencer St. in Syracuse. RICK SELTZER/THE CENTRAL NEW YORK BUSINESS JOURNAL

include those in soccer, ice hockey, and mixed martial arts, according to Derecola, who is a former head athletic trainer for the Syracuse Crunch. Those who aren’t students or athletes may be training for triathlons or marathons, or they might just want to lose weight or get in shape for weekend golf outings, he says. Services that Strides offers include sportsperformance training, adult functional training, boot camps, cardio kickboxing, boxing lessons, and self-defense classes. Derecola is also looking into other fitness classes like Yoga, Zumba, and salsa dancing. And

the business includes conditioning, strength, and nutrition programs. “A lot of the big-box gyms basically want your money,” Derecola says. “They don’t want you to come back. We want you to come back and get results. You’re getting guidance, you’re getting direction, and you’re paying for a service rather than just space or equipment.” Strides renovated its space at 738 Spencer St., updating its bathrooms, adding new carpet, and applying coats of paint where necessary. The address had been a warehouse, so it needed some work, Derecola says.

The company performed the updates itself. It employs one person besides Derecola, and it also has two interns. Two employees has been standard staffing for Strides over the years, according to Derecola, who founded the business in 2003. But he may take on more interns in the future, because exercise-science degrees seem to be becoming more popular at colleges, he says. Moving into Syracuse could help Strides boost its revenue by as much as 20 percent to 30 percent in 2013, he adds before declining to share specific revenue totals. Marketing strategies include word-of-mouth and coupons sold by the online service LivingSocial. About 75 to 100 people currently visit Strides’ location in any given week. Derecola also trains teams at Le Moyne College and the State University of New York (SUNY) at Oswego. He estimates he trains about 100 individuals at Le Moyne and around 30 at SUNY Oswego. Rawanco LLC of Lysander owns the property Strides is leasing. Allegiance Realty, LLC of Syracuse brokered the lease. Sports-performance training and adult training at Strides cost between $75 and $780 a month, depending on the type and frequency of training, according to the company’s website. Personal training ranges from $60 for a single one-hour session to $840 for 24 sessions that each last one hour. “We started with athletes, and started with hockey players,” Derecola says. “Then it progressed into what we’ve got going on now, which is getting bigger and bigger each year.”  Contact Seltzer at rseltzer@cnybj.com

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4 • The Central New York Business Journal

February 15, 2013

OBERDORFER: Facility totals almost 230,000 sq. ft. Continued from page 1

its website. Today it uses no-bake, dry-sand, semi-permanent mold, and permanent mold casting. Oberdorfer makes products for the aviation, aerospace, aluminum pump, highperformance engine, recreational, and refrigeration industries. And it performs military manufacturing. That range of industries served wasn’t enough to keep the manufacturer afloat. Company CFO Evan Beach released a statement about the pending closure. “This has been an extremely difficult decision, but the economic conditions of the company have left us with no other choice but to cease operations and close the business,” the statement said. “Unfortunately, business volume combined with increasing costs leave us unable to sustain the business.” Beach referred all other requests for comment to the company’s attorney, Robert Bourke. Bourke is based in Simsbury, Conn. “This is symptomatic of the region and the industry and the times, unfortunately,” Bourke says. “All of your costs go up, and competition is brutal, and it’s an old facility.” That facility is made up of a series of buildings totaling almost 230,000 square feet, according to records from the Onondaga County Office of Real Property Tax Services. The oldest and largest building was constructed in 1920, with subsequent structures going up in 1940 and 1960, the records show. Oberdorfer owns the property but has not decided its fate once the plant closes, Bourke says. Its 2012 market value was assessed at $2.07 million, according to the county’s tax records. Rising costs the company faced include “a little of everything,” Bourke adds. They

ranged from raw material costs to labor and health care. But Bourke did not blame the union representing plant workers, the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), for the closure. “The union has been very good in working with us to try to deal with labor issues,” Bourke says. “We’ve talked with the state and they’ve tried to work with us. It’s more a function of the other uncontrolled costs.” Employees at the foundry are members of Local 1826. The closure will affect 77 UAW members who average 22 years on the job, according to a statement released by the UAW. “It is a shame that the company is closing,” Scott Adams, UAW regional director, said in the statement. “Our members and generations of Central New Yorkers have put their hearts and souls into making a quality product for the Oberdorfer foundry since they began in 1875. The [UAW] is extremely disappointed with this news.” The release also detailed agreements Local 1826 members made to try to keep the plant open. They surrendered a defined pension plan and took a 65-percent decrease in their defined-contribution pension plan, it said. They also ratified a two-year deal in December overhauling their health-care program in an attempt to hold back cost increases. And wages for Oberdorfer union employees have been frozen for six years, the UAW said. Although 86 total positions will be eliminated with the company shutdown, not all of those employees are currently on the job. Oberdorfer’s attorney, Bourke, says about 50 are actively working — the remaining employees were laid off and waiting to be called back to the factory floor. See oberdorfer, page 5

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The Central New York Business Journal • 5

February 15, 2013

The Tax Implications of Charitable Contributions

I

n recent weeks, the topic of charitable contributions has been making headlines. Some taxpayers, concerned about rising tax rates, made plans to delay major contributions only to face the potential that deductibility might soon be curtailed. Charitable organizations were equally concerned with the fate and timing of contributions upon which many rely to carry out their mission. Whether you made a contribution to a charitable organization during the past tax year or plan to do so in the future, there ACCOUNTABILITY are some common points of information of which you should be aware. Let’s start with the groundwork. A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value. Generally, contributions are deductible when given to a community, corporation, trust fund, or foundations organized or created for religious, charitable, educational, scientific, literary purposes, or prevention of cruelty to children or animals. Such organizations must have been created under the laws of the United States, the District

GAIL KINSELLA

OBERDORFER:

Changing employee count

of Columbia, a state or possession of the U.S. The IRS now offers an online search tool at www.irs.gov/charities and charities should be able to provide verification to you directly. After determining that the organization to whom you wish to contribute is a qualifying organization, there are a few other keys points to remember. Contributions cannot be set aside for use by a specific person although you may be able to deduct some expenses of having a student live with you. Contributions to foreign organizations are typically not deductible with the exception of certain Canadian, Israeli, and Mexican charities. Tuition payments are not deductible, but money or property given to a nonprofit school is deductible as a charitable contribution. Support of public parks and recreation facilities qualifies for deduction, but payments to social and sports clubs and dues or fees paid to country clubs, fraternal orders, and lodges do not. While you cannot deduct the value of your time or services, there are certain out-of-pocket expenses in giving services that are deductible. There are numerous particulars noted in IRS Publication 526 “Charitable Contributions” which can be found at www.irs.gov/pub526. Taxpayers often contemplate the gift of cars, boats, planes, artwork, real estate, and even taxidermy property. Certainly most everyone makes donations of clothing and household items. Each of these carries the requirement of following specific rules relating to determination of fair

While you cannot deduct the value of your time or services, there are certain out-of-pocket expenses in giving services that are deductible. market value and deductible amount. Rules differ for property that has decreased in value versus that which has increased in value. Consideration must also be given to whether property is considered ordinary income property or capital gain property. As Anne Frank wrote in her diary, “No one has ever become poor by giving” and if you are still of the mind to give without getting, or expecting to get, anything of value, there are many worthy organizations you can help. Begin the dialogue to determine what a good fit for your life plan is and don’t forget to do your homework on proper tax treatment and potential benefit. You may want to review the 20-odd pages of IRS Publication 526 as a start, but be sure to consult with your tax professional, who can advise you based on the specifics of your personal situation.  Gail Kinsella is a partner in the accounting firm of Testone, Marshall & Discenza, LLP. Contact Kinsella at gkinsella@tmdcpas.com

HELP SMALL BUSINESS THRIVE! SM

Continued from page 4

The foundry’s employee count has hovered around 75 for the past several years, according to Bourke. In 2011, a layoff cut the number of union members working there to 32, the UAW said. “That number has been up and down, down and back up again,” Bourke says. “Years and years ago, there were over 200 back in their heyday. But it’s been a steady decline, which is not unusual unfortunately in that industry.” Company representatives will be negotiating with the UAW regarding severance packages, Bourke adds. They have yet to hold meetings or work out any details, though. The DeWitt foundry is a subsidiary of Advanced Metals Group, LLC. That group operates three other foundries: Ross Aluminum Castings, LLC, an aluminum foundry in Sidney, Ohio; US Aluminum Castings, LLC, an aluminum foundry in Entiat, Wash.; and Mabry Iron Castings, LLC, an iron foundry in Beaumont, Texas. None of the other three Advanced Metals Group companies are closing, Bourke indicates. Advanced Metals Group did not respond to requests for comment by The Central New York Business Journal press deadline. The UAW pointed out that Oberdorfer Pumps of 5900 Firestone Drive in DeWitt is a separate company from the foundry and is not a part of Advanced Metals Group.  Contact Seltzer at rseltzer@cnybj.com

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6 • The Central New York Business Journal

February 15, 2013

The Central New York Business Journal • 7

February 15, 2013

LEGAL NOTICE

To merchants who have accepted Visa and MasterCard at any time since January 1, 2004: Notice of a 6+ billion dollar class action settlement. Si desea leer este aviso en espaùol, llåmenos o visite nuestro sitio web. Notice of a class action settlement authorized by the U.S. District Court, Eastern District of New York. This notice is authorized by the Court to inform you about an agreement to settle a class action lawsuit that may affect you. The lawsuit claims that Visa and MasterCard, separately, and together with banks, violated antitrust laws and caused merchants to pay excessive fees for accepting Visa and MasterCard credit and debit cards, including by: ™ Agreeing to set, apply, and enforce rules about merchant fees (called default interchange fees); ™ Limiting what merchants could do to encourage their customers to use other forms of payment through, for example, charging customers an extra fee or offering discounts; and ™ Continuing that conduct after Visa and MasterCard changed their corporate structures. The defendants say they have done nothing wrong. They say that their business practices are legal and the result of competition, and have benefitted merchants and consumers. The Court has not decided who is right because the parties agreed to a settlement. On November 27, 2012, the Court gave preliminary approval to this settlement.

THE SETTLEMENT Under the settlement, Visa, MasterCard, and the bank defendants have agreed to make payments to two settlement funds: ™ I]ZĂ„ghi^hVš8Vh];jcYÂş¡V+#%*W^aa^dc[jcYi]Vil^aaeVn valid claims of merchants that accepted Visa or MasterCard credit or debit cards at any time between January 1, 2004 and November 28, 2012. ™ I]Z hZXdcY ^h Vc š>ciZgX]Vc\Z ;jcYÂş ¡ Zhi^bViZY id WZ Veegdm^bViZan&#'W^aa^dc¡i]Vil^aaWZWVhZYdcVedgi^dcd[ the interchange fees attributable to certain merchants that accept Visa or MasterCard credit cards for an eight-month “Interchange Period.â€? Additionally, the settlement changes some of the Visa and MasterCard rules applicable to merchants who accept their cards. This settlement creates two classes: ™ A Cash Settlement Class (Rule 23(b)(3) Settlement Class), which includes all persons, businesses, and other entities that accepted any Visa or MasterCard cards in the U.S. at any time from January 1, 2004 to November 28, 2012, and ™ A Rule Changes Settlement Class (Rule 23(b)(2) Settlement Class), which includes all persons, businesses, and entities that as of November 28, 2012 or in the future accept any Visa or MasterCard cards in the U.S.

WHAT MERCHANTS WILL GET FROM THE SETTLEMENT Every merchant in the Cash Settlement Class that files a valid claim will get money from the $6.05 billion Cash Fund, subject to a deduction (not to exceed 25% of the fund) to account for merchants who exclude themselves from the Cash Settlement Class. The value of each claim, where possible, will be based on the actual or estimated interchange fees attributable to the merchant’s MasterCard and Visa payment card transactions from January 1, 2004 to November 28, 2012. Payments to merchants who file valid claims for a portion of the Cash Fund will be based on: ™ The money available to pay all claims, ™ The total dollar value of all valid claims filed, ™ The deduction described above not to exceed 25% of the Cash Settlement Fund, and ™ The cost of settlement administration and notice, money awarded to the class representatives, and attorneys’ fees and expenses all as approved by the Court. In addition, merchants in the Cash Settlement Class that accept Visa and MasterCard during the eight-month Interchange Period and file a valid claim will get money from the separate Interchange Fund, estimated to be approximately $1.2 billion. The value of each claim, where possible, will be based on an estimate of onetenth of 1% of the merchant’s Visa and MasterCard credit card dollar sales volume during that period. Payments to merchants who file valid claims for a portion of the Interchange Fund will be based on: ™ The money available to pay all claims, ™ The total dollar value of all valid claims filed, and ™ The cost of settlement administration and notice, and any attorneys’ fees and expenses that may be approved by the Court. Attorneys’ fees and expenses and money awarded to the class representatives: For work done through final approval of the settlement by the district court, Class Counsel will ask the Court for attorneys’ fees in an amount that is a reasonable proportion of the Cash Settlement Fund, not to exceed 11.5% of the Cash Settlement Fund of $6.05 billion and 11.5% of the Interchange Fund estimated to be $1.2 billion to compensate all of the lawyers and their law firms that have worked on the class case. For additional work to administer the settlement, distribute both funds, and through any appeals, Class Counsel may seek reimbursement at their normal hourly rates, not to exceed an additional 1% of the Cash Settlement Fund of $6.05 billion and an additional 1% of the Interchange Fund estimated to be $1.2 billion. Class Counsel will also request reimbursement of their expenses (not including the administrative costs of settlement or notice), not to exceed $40

w w w. P a y m e n t C a r d S e t t l e m e n t . c o m

million and up to $200,000 per Class Plaintiff in service awards for their efforts on behalf of the classes.

HOW

TO

ASK

FOR

PAYMENT

IF

To receive payment, merchants must fill out a claim form. If the Court finally approves the settlement, and you do not exclude yourself from the Cash Settlement Class, you will receive a claim form in the mail or by email. Or you may ask for one at: www.PaymentCardSettlement.com, or call: 1-800-625-6440.

OTHER BENEFITS

FOR

MERCHANTS

Merchants will benefit from changes to certain MasterCard and Visa rules, which will allow merchants to, among other things: ™ Charge customers an extra fee if they pay with Visa or MasterCard credit cards, ™ Offer discounts to customers who do not pay with Visa or MasterCard credit or debit cards, and ™ Form buying groups that meet certain criteria to negotiate with Visa and MasterCard. Merchants that operate multiple businesses under different trade names or banners will also be able to accept Visa or MasterCard at fewer than all of the merchant’s trade names and banners.

LEGAL RIGHTS

AND

OPTIONS

Merchants who are included in this lawsuit have the legal rights and options explained below. You may: Â&#x161; <_b[ W YbW_c je Wia \eh fWoc[dj$ You will receive a claim form in the mail or email or file online at: www.PaymentCardSettlement.com. Â&#x161; ;nYbkZ[oekhi[b\from the Cash Settlement Class (Rule 23(b) (3) Settlement Class). If you exclude yourself, you can sue the Defendants for damages based on alleged conduct occurring on or before November 27, 2012 on your own at your own expense, if you want to. If you exclude yourself, you will not get any money from this settlement. If you are a merchant and wish to exclude yourself, you must make a written request, place it in an envelope, and mail it with postage prepaid and postmarked no later than CWo(."(&') to Class Administrator, Payment Card Interchange Fee Settlement, P.O. Box 2530, Portland, OR 97208-2530. The written request must be signed by a person authorized to do so and provide all of the following information: (1) the words â&#x20AC;&#x153;In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation,â&#x20AC;? (2) your full name, address, telephone number, and taxpayer identification number, (3) the merchant that wishes to be excluded from the Cash Settlement Class (Rule 23(b)(3) Settlement Class), and what position or authority you have to exclude the merchant, and (4) the business names, brand names, and addresses of any stores or sales locations whose sales the merchant desires to be excluded. Note: Oek YWddej X[ [nYbkZ[Z \hec j^[ Hkb[ 9^Wd][i I[jjb[c[dj9bWii (Rule 23(b)(2) Settlement Class). Â&#x161; EX`[Yj je j^[ i[jjb[c[dj. The deadline to object is: CWo (." (&'). To learn how to object, see: www.PaymentCardSettlement.com or call 1-800-625-6440. Note: If you exclude yourself from the Cash Settlement Class you cannot object to the terms of that portion of the settlement.

   sINFO

For more information about these rights and options, visit: www.PaymentCardSettlement.com.

COURT APPROVES FINAL SETTLEMENT

THE

THE

Members of the Rule Changes Settlement Class are bound by the terms of this settlement. Members of the Cash Settlement Class, who do not exclude themselves by the deadline, are bound by the terms of this settlement whether or not they file a claim for payment. Members of both classes release all claims against all released parties listed in the Settlement Agreement. The settlement will resolve and release any claims by merchants against Visa, MasterCard or other defendants that were or could have been alleged in the lawsuit, including any claims based on interchange or other fees, no-surcharge rules, no-discounting rules, honorall-cards rules and other rules. The settlement will also resolve any merchant claims based upon the future effect of any Visa or MasterCard rules, as of November 27, 2012 and not to be modified pursuant to the settlement, the modified rules provided for in the settlement, or any other rules substantially similar to any such rules. The releases will not bar claims involving certain specified standard commercial disputes arising in the ordinary course of business. For more information on the release, see the settlement agreement at: www.PaymentCardSettlement.com.

THE COURT HEARING ABOUT THIS SETTLEMENT On September 12, 2013, there will be a Court hearing to decide whether to approve the proposed settlement, class counselsâ&#x20AC;&#x2122; requests for attorneysâ&#x20AC;&#x2122; fees and expenses, and awards for the class representatives. The hearing will take place at: United States District Court for the Eastern District of New York 225 Cadman Plaza Brooklyn, NY 11201 You do not have to go to the court hearing or hire an attorney. But you can if you want to, at your own cost. The Court has appointed the law firms of Robins, Kaplan, Miller & Ciresi LLP, Berger & Montague, PC, and Robbins Geller Rudman & Dowd LLP to represent the Class (â&#x20AC;&#x153;Class Counselâ&#x20AC;?).

QUESTIONS? For more information about this case (In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, MDL 1720), you may: Call toll-free: 1-800-625-6440 Visit: www.PaymentCardSettlement.com Write to the Class Administrator: Payment Card Interchange Fee Settlement P.O. Box 2530 Portland, OR 97208-2530 Email: info@PaymentCardSettlement.com Please check www.PaymentCardSettlement.com for any updates relating to the settlement or the settlement approval process.

0AYMENT#ARD3ETTLEMENTCOM


OVERVIEW - SMALL BUSINESS OPTIMISM

8 â&#x20AC;˘ The Central New York Business Journal

February 15, 2013

OPTIMISM: New Yorkâ&#x20AC;&#x2122;s small businesses are T:10.5 in

237,0,60,1'(; Optimism Index Based on 10 Survey Indicators %DVHGRQ7HQ6XUYH\,QGLFDWRUV (Seasonally (SeasonallyAdjusted Adjusted1986=100) 1986=100)

being affected by another set of issues on the state level

New York directorâ&#x20AC;&#x2122;s comments

Potential federal spending cuts known as sequestration have hurt small-business ownersâ&#x20AC;&#x2122; outlook, according to Mike Durant, NFIB New York director. The cuts, which would take place March 1 without action by Congress, extend a climate of uncertainty that included the federal fiscal cliff at the beginning of the year, he says. â&#x20AC;&#x153;I think there is some fatigue, and I think that impacts their optimism,â&#x20AC;? Durant says. â&#x20AC;&#x153;When youâ&#x20AC;&#x2122;re seeing total gridlock and a total lack of consciousness on the issues that business owners are facing, you start

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75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 YEAR

to throw your hands up in the air. And I ed. The net percentage of regular borrowers who believe credit conditions will be think thatâ&#x20AC;&#x2122;s why it stayed low.â&#x20AC;? 237,0,60,1'(; New Yorkâ&#x20AC;&#x2122;s small businesses are being better in the next three months climbed 2 %DVHGRQ7HQ6XUYH\,QGLFDWRUV affected by another set of issues on the points to -9. (Seasonally AdjustedNonetheless, 1986=100) a net 3 percent of owners state level, Durant adds. â&#x20AC;&#x153;If you take D.C. out of the equation plan to hire in the next three months, seaand you look at New York, what are we sonally adjusted. Thatâ&#x20AC;&#x2122;s 2 points more than in the Jul NFIBâ&#x20AC;&#x2122;s last Sep survey. Oct Also creeping up talking?â&#x20AC;? heJan says. Feb â&#x20AC;&#x153;Minimum com- Jun Mar wage. Apr AMay Aug Nov Dec pletely unknown upper house in the state was the number of small-business owners 2008 91.8 92.9 89.6 91.5 89.3 89.2 88.2 91.1 92.9 87.5 87.8 85.2 reporting open jobs that they were unable legislature.â&#x20AC;? 2009 84.1 82.6 81.0 86.8 88.9 87.8 88.6 18 88.8 89.1 had 88.3 88.0 to fill.86.5 In January, percent positions Other survey findings they couldnâ&#x20AC;&#x2122;t fill, seasonally adjusted, up 2 2010 89.3 88.0 86.8 90.6 92.2 89.0 88.1 88.8 89.0 91.7 93.2 92.6 Negative optimism-index components in- points from the previous month. 2011inventory 94.1 94.5 91.9 sales 91.2expecta90.9 90.8Plans 89.9to make 88.1 capital 88.9 expenditures 90.2 92.0 grew 93.8 cluded indicators, tions, and anticipated 1 point percent business 2012 93.9 94.3credit 92.5conditions. 94.5 94.4 91.4 91.2to 21 92.9 92.8 of93.1 87.5owners 88.0 Business owners came to view their who believe they will make such an expen2013 88.9 inventories as a bit too large in January diture in three to six months. However, the and subsequently cut back on plans to seasonally adjusted percentage of owners increase inventories. Seasonally adjusted, a who viewUTLOOK this as a good time to expand deSMALL BUSINESS net -1 percent of business owners said their creased. It slipped 2 points to 6 percent. inventory levels were too low, down a point Taxes tied government regulations and 287/22. from the previous month. Meanwhile, a red tape atop a list of problems business seasonally adjusted net -7 percent wanted owners said were their most important. *RRG7LPHWR([SDQGDQG([SHFWHG*HQHUDO%XVLQHVV&RQGLWLRQV to increase their inventories the next issues were JanuaryinQuarter 1974 toBoth January Quarter 2013cited by 21 percent of three to six months, down 3 points. (Seasonallybusiness Adjusted) owners as their biggest. Poor Expectations for real sales edged up sales came in third, being named by 19 slightly, 30 although business owners werenâ&#x20AC;&#x2122;t percent of business owners. 80 ready to go so far as to predict an overall The NFIB is a nonprofit organization 60 and all sales increase. A seasonally adjusted net with members in Washington, D.C. -1 percent of business owners believe sales 50 states. It randomly surveyed 2,033 of its 20 will be higher in the next three months, up member businesses in January40 to develop 1 point. its optimism index. ď ą 20 Credit conditions arenâ&#x20AC;&#x2122;t set to change much either, survey respondents predict- Contact Seltzer at rseltzer@cnybj.com 10 0

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74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12

BUSINESS

Percent "Better" Minus "Worse" Expected General Business Conditions (thin line)

T:10.5 in

100

Percent "Good Time to Expand" (thick line)

pating better business conditions in six months rose 5 points but remained far below zero at -30. The seasonally adjusted net percentage reporting better earnings in the last three months ticked up 3 points to struggle to -26. Those negative readings indicate more owners actually believe that business conditions will deteriorate and that their earnings worsened. The NFIB calculates net percentages by subtracting pessimistic survey answers from optimistic ones, meaning negative net percentages reflect dark spirits among business owners, while positive

Index Value (1986=100)

net percentages indicate hopefulness.

Continued from page 1

Support the teams behind the top projects in the CNY region by nominating! Visit bizeventz.com for more information on the categories and nomination process.

110

-40


The Central New York Business Journal • 9

February 15, 2013

Business Journal C e n t r a l

N e w

opinion

Y o r k

Volume 27, No. 7 - February 15, 2013 NEWS Editor-in-Chief........................Adam Rombel arombel@cnybj.com Assistant Editor..............Maria J. Carbonaro mcarbonaro@cnybj.com Staff Writers........................... Kevin Tampone (Online Editor) ktampone@cnybj.com ..............................................................Rick Seltzer rseltzer@cnybj.com ....................................................Norm Poltenson npoltenson@cnybj.com Columnists..................................... Gail Kinsella Production Manager.......................Erin Zehr ewebb@cnybj.com Research Manager.................. Nicole Collins ncollins@cnybj.com SALES Sr. Account Managers....................................... Bernard B. Bregman bbregman@cnybj.com Mary LaMacchia mlamacchia@cnybj.com Marketing .......................BBB Marketing Inc. CIRCULATION Circulation Management....(315) 579-3927 Administrative Publisher..........................Norman Poltenson npoltenson@cnybj.com Chief Operating Officer......Marny Nesher mnesher@cnybj.com Business Manager..................... Kurt Bramer kbramer@cnybj.com

The Central New York Business Journal (ISSN #1050-3005) is published every week by CNY Business Review, Inc. All contents copyrighted 2012. All rights reserved. No part of this publication may be reproduced without the written consent of the publisher. Cover Price $2 Subscription Rate $89 per year Call (800) 836-3539

HOW TO REACH US MAIL: Send letters to: Editor, The Central New York Business Journal 269 W. Jefferson St. Syracuse, N.Y. 13202-1230 E-MAIL: letters@cnybj.com PHONE: (315) 472-3104

After the Newtown tragedy: Shooting from the hip

O

  n the morning of Dec. 14, 2012,   20-year-old Adam Lanza fired   four bullets into his mother’s head. Nancy Lanza was at home in her Newtown, Conn. residence, lying in bed clad in her pajamas. Lanza then drove to Sandy Hook Elementary School where 456 children were enrolled. At the school, he killed 20 children and six adults with his mother’s Bushmaster rifle before committing suicide. On the day of the shooting, President Barack Obama gave a televised address to the nation in which he said: “We’re going to have to come together and take from the meaningful action to publisher prevent more tragedies like this, regardless of the politics.” The president’s response to Newtown came on Dec. 19 when he formed a gun-violence task force led by Vice President Biden. A month after the shooting, President Obama announced his solution to mass killings: increasing the nation’s gun-control laws to include universal background checks, an assault-weapons ban, and limiting the capacity of magazines to 10 cartridges. The president’s “meaningful action” comes in the form of a single-issue, legislative answer to mass killings. It is simple, reflexive, and short-sighted. It responds to the emotional repugnance at the murder of children but ignores the root of what is a complex problem. The president disregards research on the relationship of guns to violence; our policy toward mental illness; the nation’s cultural deterioration; the squeezing out of societal institutions by government; the impact of movies, television, video games, and music; the media’s role in reporting these incidents; and school security. A background report published by the Heritage Foundation in January offers guidance in solving what is a complex problem, beginning with the relationship of guns to violence. The short answer is that gun ownership does not correlate with increased violence. If it did, the rate of national violence in rural areas where gun ownership is high would exceed that of urban centers where gun ownership is low. Also, the black community suffers from disproportionate violence even though its gun ownership is far lower than in the white community, which has less violence. Further, localities that permit right-to-carry laws have seen a decline in murder and other violent crimes. In short, if gun-control laws were a panacea, cities like Washington, D. C., Oakland, and Chicago, noted for their strict gun-control laws, should be safe places, but the opposite is true; they are among the most dangerous in America. In addressing the nation, the president failed to mention that America tried a weapons’ ban on assault rifles starting in 1994. The ban sunset 10 years later, at which time a study commissioned by the U.S. Department of Justice concluded there was “… no discernible reduction in the lethality and injurious of gun violence.” International statistics also show no correlation between guns and violence. The Swiss

norman poltenson

own three times as many guns per-capita as their neighbors in Germany, yet the Swiss have a lower murder rate. Other countries like Israel, New Zealand, and Finland have very high rates of gun ownership, yet report low murder rates. Meanwhile, Russia, Brazil, and Mexico have strict gun-control laws, but higher rates of violence than in the U.S. The only exception seems to be Japan, which has both strict gun-control laws and a low incidence of violence. By focusing on gun control, the administration avoids addressing any serious questions about our national policy toward mental illness. In 2000, the New York Times published a study of 100 “rampage murders” that occurred over several decades. The report concluded that 48 percent of the murders involved perpetrators with a formal diagnosis of mental disorder and that more than half of these had histories of serious mental problems. More recently, Seung-Hui Cho who killed 32 at Virginia Tech, Howard Unruh who murdered 13 in Camden, N.J., Jiverly Wong who killed 13 in Binghamton, and Jared Loughner who killed six in Arizona all suffered from untreated schizophrenia. According to the National Institute of Mental Health, 7.7 million Americans currently suffer from schizophrenia and bi-polar disorders. At any given time, almost half are receiving no treatment. The risk of schizophrenics committing homicide is 10 times greater than the risk from the average citizen. A discussion of our policy to encourage deinstitutionalizing psychiatric patients is very much in order. The trend began in the 1960s with the creation of federally funded mentalhealth centers and accelerated in the 1970s when the U.S. Supreme Court raised the burden of proof for involuntary civil commitment. The court also expanded the rights of the mentally ill to refuse treatment. In the past, it may have been too easy to commit an individual involuntarily; now it’s too difficult. Society needs to find a balance that protects the rights of both the individual and society. The country also needs to address cultural issues. Research has long told us that the family is the building-block of a flourishing society, yet four children of every 10 are born out of wedlock, with the rate in some minority communities reaching more than seven of 10. We know that adolescents who do not live in intact families exhibit more “psychologically affective disorders.” We also know that married fatherhood is the single most reliable indicator for socializing males and that neighborhoods where adolescents live in intact families are less likely to experience violent behavior, like carrying weapons or fighting. Where is the discussion of the collapse of marriage and the rise of single-family households? Where is the discussion of violence and other risk factors resulting from these single-family homes? If strong families are the first line of defense against violence, our civic institutions are the second responders. Again, research shows us that religious practice can have a powerful impact on maintaining stable, intact families and supporting the healthy development of children. Religious families tend to enjoy lower levels of conflict and higher levels of marital stability. The frequency of religious attendance at a house of worship is a better indicator of parental involvement than either

employment or income. America also boasts a multitude of civic organizations to channel youthful energy into productive channels. While traveling through our country in the 1830s, Alexis de Tocqueville noted the ubiquity of religious practice and the plethora of groups that sprang up voluntarily to deal with community needs. Today, the space between the individual and government is being squeezed by the unrelenting expansion of government, where one-size-fits-all is the answer to all of our problems. Where is the discussion of any impact violence in our media plays? It doesn’t take a professional to recognize the increase in violence in our movies, television, and music. Last year in the video-game industry, five of the 10 top sellers were based on not just death and violence but on torture, mutilation, and sadism. What is the effect on those prone to psychological disorders who spend hours viewing the media or listening to hateful music? Families, parents, and community leaders all have a duty to protect their youth from excessive consumption of violence. Does this mean creating different rating systems? Does it mean leveraging the free market to put pressure on the producers of violence? And speaking of the media, what is the role of television, radio, newspapers, magazines, and websites in reporting these tragedies? Does the 24/7 reporting, which transmits more speculation than facts, magnify the celebrity status of mass killers and feed their need for attention? We know that copy-cat killings are as old as the media, dating back to Goethe’s 1774 classic “The Sorrows of Young Werther,” when the novel caused a rash of copy-cat suicides. What is the role of the media? Should the industry show more restraint? And where is the discussion of the idea offered by Wayne LaPierre of the NRA to provide armed guards at our schools? Or should we arm teachers and administrators in the schools? Why is the suggestion dismissed out of hand when mass-killers so often select schools as their venue for violence? Our society accepts armed guards in banks and on airplanes. Other societies like Israel have armed guards at every school. If the idea has merit, let’s at least discuss it before dismissing it. In retrospect, we learn that Adam Lanza came from a single-family home. He drove to Sandy Hook Elementary School armed not just with a rifle but also three other guns, which makes the question of the number of rounds in a magazine moot. We know that he avoided attracting attention and was uncomfortable socializing. Lanza’s brother told law-enforcement officials that his brother had a personality disorder. We also know that the Newtown shooter played violent video games for hours at a time. If President Obama were serious about taking “meaningful action” to reduce the problem of mass killings, he missed the opportunity to have a thoughtful, national discussion of all the issues. Instead, he gave us a shallow, narrow, reflexive response intended to show the voters that government was reacting. Perhaps the populace will feel safer if we pass more gun-control legislation. Until the next mass-killing. q

Norman Poltenson is publisher of The Central New York Business Journal. Contact him at npoltenson@cnybj.com


10 • The Central New York Business Journal

February 15, 2013

february 20 n CNY ASTD Social Media Community Discussion Group from 9 to 10 a.m. at SUNY Center for Professional Development, 6333 Route 298, Ste. 102, DeWitt. The topic will be “Tablets.” Call (315) 546-2783 or email: info@cnyastd.org

february 21 n CNY BEST Information/Work Session from 8:30 to 9:30 a.m. at MACNY in DeWitt. CNY ASTD (CNY Chapter of American Society for Training & Development) will hold an informational session regarding the CNY BEST “Learning and Performance” Program and the awards application process. For questions regarding this announcement, please contact Brenda Grady at info@cnyastd.org or 315.546.ASTD (2783). n CNY ASTD Happy Hour from 5 to 7 p.m. at Coleman’s in Syracuse. CNY ASTD hosts informal networking for learning and performance professionals. For questions regarding this event, please contact Brenda Grady at info@cnyastd.org or 315.546.ASTD (2783).

february 23 n New Frontiers Business Development Conference & Expo at Broome Community College in Binghamton, from 9:30 a.m. to 4:30 p.m. This event is the only business expo exclusively for ethnically, culturally, and underrepresented age/gender specific business owners in the Southern Tier, organizers say. Conference will feature workshops throughout the day, covering topics including technological advances supporting entrepreneurship, new business, and professional development. An all-day expo allows small-business owners to gain exposure for their firms. For more information, visit www.newfrontiersexpo.info

february 26 n Civic Engagement Soiree from 6:30 p.m. to 8:30 p.m. at the Maxwell School of Public events room (220 Eggers Hall on the SU campus). Join 40 Below and Syracuse University for an evening of networking and civic engagement. United Way of Central New York President and Maxwell School of Citizenship and Public Affairs Professor, Frank Lazarski will speak about involvement in the community and how it can build your resume. Network with local organizations and community leaders following the speaker. For more information, contact Chris McCarthy at Chris.s.mccarthy@gmail.com.

february 27 n Breakfast Meeting: “Every Business Should Have A Plan” from 7:30 to 9 a.m. at the Owego Treadway Inn and Conference Center. The Tioga County Chamber of Commerce and the American Red Cross are working together to present this event. Cost of the event is $15 and includes a continental breakfast. Reservations and payment are required by Feb. 25. Call the Tioga County Chamber of Commerce for more information at (607) 687-2020 or email: info@ tiogachamber.com n Exit, Succession and Transition Planning seminar for small- to mediumsized business owners from 8 a.m. – 4:45 p.m. at the Binghamton University Downtown Center at 67 Washington St., Binghamton. Cost is $20 per person (includes lunch). Register by Feb. 20 by contacting Marianne Ferry at (607) 777-2342 or

Business Calendar

OF EVENTS

email: mferry@binghamton.edu

march 5 n State of the County Address by Oneida County Executive Anthony J. Pincente, Jr. Hosted by the Mohawk Valley Chamber of Commerce at the Radisson Hotel Utica Centre. Registration at 7:30 a.m., with breakfast to follow at 8:00 a.m. The cost to attend the breakfast is $20, while the event is free for those who wish to only hear the address. The County Executive will speak at 8:30 a.m. Limited seats for the breakfast are available. To make reservations or obtain more information, please contact the Mohawk Valley Chamber of Commerce at (315) 724-3151.

march 12 n Certification Workshops for Women Entrepreneurs and Minorities from 9:00 -11:30 a.m. at the Radisson Hotel Utica Centre. The event will feature Deborah J. Cabral, president and owner of Cabrel Enterprises, LLC, and provide light refreshments, program materials, and networking opportunities for a cost of $12 per person. Reservations and payment for the event need to be made in advance one week prior at www.womenties.com. For more information, contact Tracy Higginbotham at Women TIES at (315) 708-4288 or Donna Rebisz of the Women’s Business Center at (877) 844-9848.

ment for the event need to be made in advance one week prior at www.womenties.com. For more information, contact Tracy Higginbotham at Women TIES at (315) 708-4288 or Donna Rebisz of the Women’s Business Center at (877) 844-9848.

APRIL 8 n 2013 CenterState CEO Annual Meeting from 11:30 a.m – 2 p.m. at the Oncenter in Syracuse. The meeting’s theme will focus on Re:Invention, and the keynote speaker is Xerox U.S. President Kevin Warren. During the meeting, CenterState CEO will announce the winners of Startup Labs Syracuse and feature the Business of the Year Awards. Tickets for members are $65; non-members pay $80. Register for the event at www.centerstateceo.com/events or contact Lisa Metot at (315) 470-1870.

APRIL 10 n Wisdom Keeper Award event from 5 to 8 p.m. in the ballroom at the Nicholas J. Pirro Convention Center at the Oncenter in Syracuse. The award will be presented to Cornelius (Neil) Murphy, president of ESF. The cost to attend is $100-$150 per person. For details and reservation information, call F.O.C.U.S. Greater Syracuse at (315) 4488732 or visit http://www.focussyracuse. org/2012/11/2013-wisdom-keeper

march 20

ONGOING EVENTS

n Healthy Syracuse Worksite Wellness Conference at the SRC Arena & Events Center on the Onondaga Community College campus. This conference is expected to draw more than 200 corporate decision-makers, including business owners, CEOs, human-resources professionals, benefits administrators, health-care providers, insurance carriers, and publichealth officials. For more information, contact Joyl Clance at (315) 579-3917, or email: jclance@bizeventz.com

n Every Tuesday, Cayuga Club Toastmasters from 6 to 7 p.m. at Cornell University, Ithaca, Rhodes Hall, 6th Floor, Conference Room #655. Free and easy parking is available nearby at Peterson Lot. For more information, contact Julia Reich, (315) 3647190 or email: juliareichdesign@gmail.com

march 27 n 2013 Nonprofit Awards from 11 a.m to 2 p.m. at the Oncenter in Syracuse. Nonprofit leaders will be honored in five categories: Executive of the Year, Board Leadership, Board Development, Impact Award, and Career Achievement. Nominations are being accepted until Feb. 13. To nominate someone or obtain more information about the event, visit www.bizeventz.com or contact Joyl Clance at (315) 579-3917, or email: jclance@bizeventz.com

APRIL 2 n Certification Workshops for Women Entrepreneurs and Minorities from 6:00 -8:30 p.m. at the Herkimer County Chamber of Commerce in Herkimer. The event will feature Deborah J. Cabral, president and owner of Cabrel Enterprises, LLC, and provide light refreshments, program materials, and networking opportunities for a cost of $12 per person. Reservations and pay-

n Every Tuesday, Gung Ho Networking Group from noon to 1:30 p.m. at Ruby Tuesday Restaurant, 3220 Erie Blvd E., DeWitt. Possible referrals for you; this is not a tip club. First visit free. Contact Paul Ellis at (315) 677-0015 or visit www.GungHoReferrals.com n Every Wednesday, Small Business Development Center at OCC from 4 to 6 p.m., Introduction to Business Startup at H-1 Hall. For more information, please call 498-6070 or visit www.onondagasbdc.org n Every Wednesday, Syracuse Business Networking from 6 to 7 p.m. at Barbieri’s Restaurant (upstairs level) located on Main Street in the village of North Syracuse. For more information, call Kim Bachstein at (315) 414-8223 or email: info@ SyracuseBusinessNetworking.com n First Wednesday of each month, Business Innovation Days meetings from 9 a.m. to 5 p.m. at The Tech Garden, 235 Harrison St., Syracuse. Entrepreneurs and small businesses can meet one-onone with a counselor from the SBDC for advice and customized assistance opportunities. Scheduled by appointment, call

(315) 474-0910 or email: info@thecleantechcenter.com n First and Third Wednesday of each month Preferred Toastmasters from noon to 1 p.m. at Golden Artist Colors, 188 Bell Road, New Berlin. Contact Jonie Bassett at (607) 847-6154, x1217. n Fourth Wednesday of each month Preferred Toastmasters from 5:30 to 6:30 p.m. at Chenango County Council of the Arts, 27 W. Main St., Norwich. Contact Jonie Bassett at (607) 847-6154, x1217. n Every Thursday, Empire Statesmen Toastmasters meet at 6:30 p.m. at Ruby Tuesday on Erie Boulevard in DeWitt. For more information, visit http://1427.toastmastersclubs.org or email: contact-1427@ toastmastersclubs.org n Every Thursday, Liverpool Linguists from 7 to 8 p.m. First Thursday of every month at Liverpool Public Library and the remaining Thursdays at Liverpool First Methodist Church, 604 Oswego Road, Liverpool. For details, visit http://Liverpool. toastmastersclubs.org or call (315) 8842668 or 457-2581. n Every second and fourth Thursday of the month, The North Star Toastmasters from noon to 1 p.m. at C&S Companies, 499 Col. Eileen Collins Blvd., near Hancock Airport. For more information, contact Sandy Jurkiewicz at sjurkiewicz@centerstateceo.com or call (315) 470-1802. n Every Friday, 40 Above: Workers in Transition from 9 to 11 a.m. at the library in North Syracuse (NOPL) at 100 Trolleybarn Lane, North Syracuse. Helping workers/job seekers aged 40 and above in search for work. Contact John A. Cruty at (315) 569-3964, or at crutij@yahoo.com n Every Friday, Tip Club of Syracuse, at the Sheraton Syracuse University Hotel, 801 University Ave., Syracuse, 8 to 9 a.m. Call Bernie Bregman at (315) 472-3104, ext. 103 or email: bbregman@cnybj.com n First Friday of each month, Toolkit Day with SCORE by appointment at The Tech Garden. Counselors provide free, confidential, individual business mentoring to prospective or current business owners. For more information or to schedule an appointment, contact Lynn Hughes at (315) 579-2862 or email Lynn@TheTechGarden. com n Every second and fourth Friday of each month, The SUN Group (Sustainable Upstate Network) meets from 7:30 to 9 a.m. at Tony’s Family Restaurant, 3004 Burnet Ave., Syracuse. For more information, contact Andy Picco at (315) 657-0135 or email: andrewpicco@gmail.com n Every week, Syracuse Networking Professionals. Five meetings to choose from. For details, call Kevin M. Crook at (315) 439-1803, or email KevinSNP@twcny.rr.com or visit SyracuseNetworkingProfessionals.com n CNY Connects is a networking organization offering 12 groups from which to choose. If you are interested in learning more, contact Amy Kaschel of AK Consulting at akconsult@twcny.rr.com or call (315) 882-6127 or visit www.cnyconnectsonline.com To have your meetings or events in the Business Calendar, email them to movers@cnybj.com 


February 15, 2013

ACCOUNTING Denis Jahic has joined the tax staff of Dannible & McKee, LLP. He graduated from Le Moyne College in December and was previously employed as an intern with Daley Lacombe & Charette, P.C. in Manlius.

ARCHITECTURE/ENGINEERING Popli Design Group has added the following employees. Paul Lindemann has joined as a structural engineer and brings more than 10 years experience to his position. He has designed various structurLindemann al systems for bridges and buildings. The types of projects he has been responsible for include parking structures, municipal facilities, educational facilities, commercial and retail buildings, and bridge replacements and rehaVella bilitations. Lindemann has a bachelor’s degree in architectural engineering/structural option from the University of Wyoming. Jennifer Vella has been hired as administrative assistant. She brings 19 years experience to her new Allen position. Vella holds an associate degree in communications and media arts from Monroe Community College and a bachelor’s degree in English/creative writing from SUNY Brockport. John Allen has joined the firm as a senior mechanical designer and brings more than 25 years experience to his position. He has worked on various types of projects, including health care, educational, municipal, residential, and commercial facilities. Allen holds a certificate in mechanical & electrical engineering from Onondaga Community College.

BANKING & FINANCE Oneida Savings Bank announced the promotion of three employees to assistant vice president. Sally W. West was named assistant vice president – compliance. Her most recent position was compliance West officer. West oversees ensuring that Oneida Savings Bank’s policies are in compliance with all governing laws, rules, and regulations. Andrea J. Barbato was promoted to assistant vice president – internal audit manager Barbato from internal audit manager. Barbato assists the director of internal audit in examining and evaluating the adequacy, effectiveness, and

PEOPLE ON THE MOVE: new hires & promotions efficiency of the bank and insurance agency’s internal control and risk-management systems. She also reviews employees’ adherence to policies, procedures, laws, and regulations. Mollie R. Hoehn was Hoehn promoted to assistant vice president – lead regional office manager. Her most recent position was as office manager of the Turin Road Office in Rome. Hoehn is now responsible for the effective oversight of Turin Office, as well as for direct supervision of assigned office managers in the East region of Oneida Savings Bank, which includes Vernon, Westmoreland, Rome, and Griffiss Park.

CONSTRUCTION VIP Structures, Inc. has added Ray Cudney to its staff. Cudney, of Cazenovia, joins as a project executive with the company’s construction division. In this role, he will work in the development and Cudney maintenance of client relationships as part of VIP’s overall project-management efforts. Prior to joining VIP, Cudney was executive vice president, secretary of the executive board, and manager of Beardsley Design Associates’ Syracuse office. In 2012, Cudney was appointed to New York Governor Andrew Cuomo’s State Works Task Force to reform the capital-spending process of 45 state agencies.

EDUCATION & TRAINING USC The Business College recently announced the addition of four new instructors to its faculty. Joining the Canastota campus’ full-time faculty is Jeffrey Trapp. A Utica resident that received his MBA from Ashford University and his bachelor’s degree in accounting and finance from SUNYIT, Trapp holds a graduate certificate in teaching and learning from Walden University, where he is pursuing his Ph.D. in management. Joining the Canastota campus’ adjunct faculty is Robert Doss. He received his master’s degree in education from SUNY Oswego and his bachelor’s degree in business administration from SUNY Empire State College. He holds a NYS public school teacher certificate in business and distributive education, and took an electronics program at Bryant & Stratton. In addition to his extensive teaching experience, Doss has been a weekend morning announcer and building & grounds chief staff engineer for Mars Hill Broadcasting Co., Inc., in Syracuse. Joining the Utica campus’ adjunct faculty are Wesley Dean and James Stewart. Dean, a Utica resident, received both his bachelor’s degree in computer science and bachelor’s degree in philosophy from Syracuse University. He is the principal in KDA Web Technologies, Inc. Prior to starting his own business, he was the lead developer/web architect for SUNYIT, an instructor for Vermont State College, and staff engineer for IBM Microelectronics. Stewart

received his bachelor’s degree from Hofstra University. He is a management consultant and life and health insurance broker in his consulting firm, Stewart Associates, LLC. For 20 years, Stewart worked for Sears as the New Hartford store manager.

employee benefits William DePersis has joined POMCO Group as a workers’compensation salesperson. With more than 25 years experience in the risk-management industry, DePersis will focus on identifying proDePersis spective clients, whose risk management and financing programs include self-insured workers’-compensation plans. The founder and president of WD Risk Management and Consulting, DePersis has worked in nearly Munger all aspects of the industry. His expertise is centered on serving the public sector and nonprofit entities struggling with risk management and financing program performance. DePersis is a graduate of both the School of Management at SUNY Binghamton and the Insurance Institute of America. He is licensed by the state of New York as a commercial lines broker. DePersis is the current president of the Windsor Partnership, a not-for-profit organization whose sole purpose is the economic and community re-development of the greater Windsor area. He also owns a small furniture company that specializes in hand-crafted, country, and primitive home furnishings. Nick Munger has been promoted to information services (IS) director at POMCO Group from his former role as senior systems engineer. In his new role, Munger is responsible for leading the technology efforts of POMCO. Munger has been part of every major system implementation at the company since joining in 2003. Among his duties as IS director, Munger will focus on delivering innovative, cost-effective IS solutions to internal and external clients in a dynamic, high-growth, environment that has multiple locations and multiple lines of business. His past employers include St. Joseph’s Hospital Health

The Central New York Business Journal • 11

Center, Integrated Sensors Inc., and CSU Industries. Munger received his bachelor’s degree from SUNY Oswego in 2001, where he majored in computer science.

law Brody D. Smith has been elected partner at Bond Schoeneck & King, PLLC. He practices in the areas of environmental and property law. Smith has broad experience in many aspects of environmental law, including litigation and regulatory matters. His experience includes matters involving eminent domain, mining, code enforcement, land use, zoning, permitting, the New York State Environmental Quality Review Act (SEQRA), Clean Water Act, Clean Air Act, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the Resource Conservation and Recovery Act (RCRA) and toxic torts. Smith is a graduate of San Diego State University and Cornell Law School.

real estate Pyramid Brokerage Company announced that Jill Romano has joined its Syracuse office as a commercial real-estate agent. Romano was previously working with the Near Westside Initiative and Romano has a degree in anthropology, economics and Spanish from the University of Buffalo.

Send your People-on-the-Move, New Hires and Promotions news, via email to: movers@cnybj.com

q


12 • The Central New York Business Journal

February 15, 2013

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Pathfinder Bank CEO Schneider elected treasurer of New York Bankers Association By Journal Staff

T

  homas W. Schneider, president and   CEO of Oswego–based Pathfinder   Bank, has been selected to serve as treasurer of the New York Bankers Association (NYBA). “Our industry is changing rapidly and it is important for us to have the type of expertise and experience that Tom has to help guide us toward the future,” Michael P. Smith, president and CEO of the New York Bankers Association, said in a news release. Schneider has been Pathfinder Bank’s chief executive since January 2000. He has worked at the bank since April 1988 and previously served as CFO and as controller. Schneider has spent his entire 28-year career in the financial-services industry — previously working at Merrill Lynch & Co., American Express, and J. Henry Schroeder Bank and Trust. “The New York Bankers Association has consistently done an outstanding job of providing advocacy and education, and promoting areas of common ground for its member banks and the banking industry,” Schneider said in a news release. “I am honored to be asked and accept such a vital role in our association.” Schneider received his MBA from Fairfield University in Connecticut in 2002 and his bachelor’s degree in economics from Cortland State University in 1983. He serves as an adjunct professor at Oswego State University, teaching a graduate-level finance course, entitled: “Management of Financial Institutions: A Risk Based Approach” in the School of Business. Pathfinder Bancorp, Inc. (NASDAQ: PBHC), holding company for Pathfinder Bank, earned $2.6 million, or 87 cents a share, in 2012, up from $2.3 million, or 52 cents, in 2011. Pathfinder has total assets of $478 million and eight branches in Oswego and Onondaga counties. The NYBA is comprised of commercial banks and thrift institutions that engage in the banking business in New York state. Its members have aggregate assets exceeding $10 trillion and employ more than 200,000 people in New York. q

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TECHNOLOGY SPECIAL REPORT

& INNOVATION

Breakthrough Design expects more growth in 2013 BY KEVIN TAMPONE JOURNAL STAFF

SYRACUSE — Breakthrough Design Group, an anchor tenant at the South Side Innovation Center, expects to double its business this year and add new staff members. Breakthrough provides Web-design services and got its start in 2008. Tison Kelley, the firm’s founder and executive director of business development, says the company has been doubling its revenue about every six months since 2009. The staff is up to five people, including four at the South Side Innovation Center, where the firm now occupies about half the facility’s second floor. Kelley says Breakthrough will probably add another three people in 2013. The firm’s average project size has grown from $1,000 to $8,000 to $10,000, says Miles Dudgeon, executive producer at Breakthrough. The work also includes a handful of much larger projects in the $18,000 to $20,000 range. The company The firm’s originally came average to the South Side Innovation project size Center three years ago for ashas grown sistance, Kelley from $1,000 says. The firm is now represented to $8,000 on the facility’s board of directo $10,000, tors and serves says Miles as a consultant and mentor to Dudgeon, the small busiexecutive nesses and enwho producer at trepreneurs come to the cenBreakthrough. ter for help. “It gives us the opportunity to help out other organizations that need it,” Kelley says. “We’re more of a partner with the center now.”

PHOTO COURTESY OF BREAKTHROUGH DESIGN GROUP

From left to right: Daniel Sieradski, creative director; Tison Kelley, executive director of business development; Devon Beard, front-end Web developer; and Miles Dudgeon, executive producer, at the Breakthrough Design Group offices. The center is a project of Syracuse University’s Martin J. Whitman School of Management. It provides services including office space and equipment, intensive hands-on training and counseling, roundtables, networking, classroom courses, business plan development, and more. Breakthrough’s roster of clients includes nonprofit entities and for-profit businesses of varying sizes. The firm says it has worked with 150 clients and has 60 live websites online now. Kelley says the company focuses on organizations looking for high-end design but that want to be able to edit the content of their sites themselves. And although there

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is no shortage of Web-design firms, there are few that can deliver first-rate work at the same time they give their customers the ability to manage the sites on their own, he adds. Breakthrough also focuses on outlining and delivering specific client goals through their sites. “So if you just want a website, we’re probably not a good fit,” Kelley says. But if a client has specific aims it wants to achieve through its site, Breakthrough can help, he adds. Those goals could include increasing a nonprofit group’s donor base or boosting a corporation’s reach in social media.

It’s important, Kelley says, to design with those goals in mind and then give clients the ability to track results as well. Kelley says Breakthrough’s growth will probably begin to level off in the next few years. But the company is preparing to launch a new business in 2013 that has strong potential. The business, built around a software project, involves a group of McDonald’s franchisees, Kelley says. The effort will involve some new hiring, he adds. He declined to discuss details of the work since the business is not yet launched.  Contact Tampone at ktampone@cnybj.com

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2B • The Central New York Business Journal

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February 15, 2013

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PHOTO COURTESY OF CENTERSTATE CEO

Rob Simpson, president of CenterState CEO, far right, speaks to the participants in the Startup Labs Syracuse program. The first edition of the program wrapped up this month with the program’s Demo Day on Feb. 7.

Startup Labs wraps up BY KEVIN TAMPONE JOURNAL STAFF

SYRACUSE — The first edition of Startup Labs Syracuse ended this month with the program’s Demo Day. The event took place Feb. 7. The five final teams in the competition pitched to a panel of judges in a public event. They are competing for a total of $350,000 in cash and prizes. The money includes a $150,000 cash prize and the Market Ready Award presented by Eric Mower + Associates, which will provide a suite of marketing and branding services valued at $50,000. The finalists already received initial investments of $30,000 each. The competition drew 97 initial applicants. “For us, the mentorship has been phenomenal,” says Dan Cody, chief operating officer at SnagMobile, LLC of Delmar. “The program has helped us identify where we can break barriers to entry.” SnagMobile is a mobile app that allows users to order and pay for food and drinks at live events without leaving their seats. The company launched its app in two minor league baseball stadiums last summer. The company is also working to deploy its technology at venues like golf courses, hotels, and casinos. The hotel market, Cody says, probably holds the most potential for SnagMobile now. Stadiums are more of a seasonal business and SnagMobile’s leaders believe there’s demand for mobile payments among hotel guests. “This market is completely new,” Cody says. “We need to prove ourselves.” He expects two or three leaders to emerge in the space in the next 12 to 18 months. The idea is for SnagMobile to be one of them. CenterState CEO unveiled Startup Labs in September as the successor to the Creative Core Emerging Business Competition, which began in 2007 and awarded a total of more than $1 million to area companies over the course of six competitions. The final teams moved into the Tech Garden in downtown Syracuse in January

to begin a 22-day program of working with more than 50 mentors and advisers to advance their ideas. The competition’s prizes will be presented at CenterState CEO’s annual meeting on April 8. Syracuse is the first U.S. city to host the Startup Labs program, which grew from the Startup Weekend program. That effort brings together entrepreneurs in weekendlong events around the world aimed at developing new business ideas. The Tech Garden has hosted the events in the past. Startup Labs is based in Seattle and has run its program in Turkey, Taiwan, Mexico, Brazil, and India. Startup Labs is partnering with CenterState CEO and Excell Partners of Rochester to bring the program to the region. Each partner invests an initial $50,000 to start the program. An additional $200,000 of support is provided by the competition’s 10 private sponsors including lead sponsor, National Grid. Other major sponsors include M&T Bank and Bristol-Myers Squibb. “When you work by yourself, you can become stubborn and get stuck in your own head,” says Bea Arthur, founder and CEO of Pretty Padded Room, one of the other finalists. “It’s been interesting to get feedback.” Pretty Padded Room, based in New York City, provides online therapy. The service launched two years ago and its group of 10 therapists work with an average of 30 to 50 clients a month. Arthur says she now wants to deploy the technology platform she’s created for the business to other therapists. “This is super scalable,” she says. Telemedicine and distance therapy are growing spaces and Arthur wants to make her business a major player in the space. Startup Labs, she says, is helping figure out how to get there. “Programs like this help you focus and put your next steps into action and give you insight into what investors are looking for,” she adds.  Contact Tampone at ktampone@cnybj.com


The Central New York Business Journal • 3B

technology & innovation

February 15, 2013

Binghamton Web firm sets up shop downtown By Kevin Tampone Journal Staff

BINGHAMTON — A Web-design firm launched last year is making the leap from home offices to a physical location in downtown Binghamton. FreshySites began unofficially in 2011 and its founders formed their company just last year. They built their business from their homes to a base of 77 customers. They opened their 1,300-square-foot office, at 37 Court St. in Binghamton, in January. Four of the company’s five employees are “We want originally from the customers to Binghamton area, but left to attend be able to college. Four of the come in and firm’s employmeet with ees are based in Binghamton and us and feel the fifth works Fairfax, Va. comfortable from The partners stopping by decided to launch the company in the office,” Binghamton in part because it ofGiordano fers a host of potential customers says. in the small and mid-size business space, says Ben Giordano, FreshySites’ co-founder and lead developer. Many of the local companies also don’t have an updated Web presence. There’s a need in the market, Giordano says, for a firm that can help local businesses improve their websites quickly and inexpensively. He adds that FreshySites is trying to offer Web design almost as a retail product. The company’s office is in street-level retail space. The idea is for potential clients to be able to walk in off the street and talk about their sites easily. Giordano also notes that the company’s goal is customer volume. He says the firm can put together a basic website for $250 and is aiming to grow its client roster quickly. “The way websites are built…has changed,” he says. “It doesn’t have to be thousands of dollars to do this.” FreshySites expects to grow its customer base to 200 by the end of the year. The firm is also likely to add another employee in 2013, Giordano says. The company’s price points open the door to businesses that might have not been able to afford a Web presence previously, he adds. And he says that just because the company offers an inexpensive product doesn’t mean it’s of poor quality. Giordano’s background is in advertising and marketing. While working in that space, he says he saw the need for Web design aimed squarely at small companies that don’t have massive budgets. The new office is also a key part of FreshySites’ strategy. “We want customers to be able to come in and meet with us and feel comfortable stopping by the office,” Giordano says. “If

they have a request, we want them to stop by. We want to put a big public face on it. We want to get to know our customers.” FreshySites is not focusing on any specific industry niche, but rather concentrating on its geographic market. Eventually, that will mean expanding with offices in

other cities, which could include Syracuse, Rochester, Albany, and Scranton, Pa. The headquarters and much of the development work will remain based in Binghamton, but sales and support staff will be located in other cities, Giordano says. If things go well in 2013, he adds, the company

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could be looking at another location by the end of the year. Giordano co-founded FreshySites with Vincent Consumano, who grew up in Manassas, Va. Giordano and Consumano, who works from Fairfax, Va. now, were roommates at Virginia Tech. q

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4B • The Central New York Business Journal

TECHNOLOGY & INNOVATION

February 15, 2013

Power Engineers looks to tap local talent pool BY KEVIN TAMPONE JOURNAL STAFF

SYRACUSE — Power Engineers launched and is growing its Syracuse office with the aim of tapping into the technical talent base present in the region. Power opened its office in Syracuse last May. The firm employs 16 people in a 7,500square-foot space at 1 Dupli Park Drive. The site has room to grow to more than 40, says Rod Coffey, who heads Power’s local office and is the Northeast regional manager for substations. Coffey says the office could double in size in 2013 and notes Power has no plans to cap the local site’s size. “So long as Syracuse produces people, we’ll continue to bring them in,” he says. “We can’t find enough people in our industry.” In Syracuse, Power works mainly on design of power delivery systems within the electrical grid. The office has other capabilities including civil, structural, mechanical, and environmental engineering, Coffey says. The local market has plenty of good engineering schools Power hopes to tap, he adds. And there are experienced engineers in the region as well. Power could also draw new employees from schools in the North Country as students from those colleges drift toward larger communities like Syracuse in search of more opportunities, Coffey says. The need for work in the energy space

is not likely to ebb anytime soon, he adds. Demands on the power grid will continue to grow and companies like Power will find plenty of work. The firm had already been working for utilities with a presence in New York even before the Syracuse office opened. They include National Grid and Iberdrola. Power Engineers also already had an office in Freeport on Long Island before

launching in Syracuse. Recruiting more people from the state should only help Power’s business in the market continue to expand, Coffey says. He adds that local employees could find themselves working on projects from around the country. But the energy environment in New York is unique in some ways, Coffey adds. It’s the only state with its own independent system

operator (ISO), the entity which controls the power grid, he explains. Most other ISOs span multiple states. New England has its own, for example, and one of the operators in the Midwest also covers parts of Canada. New York’s one-state-only ISO can make working on power projects here different, Coffey says. “New York really is an island,” he says. Power’s Syracuse office has already found itself working on a very public project that had nothing to do with energy. The company worked on rigging the line for Nik Wallenda’s high-wire walk across Niagara Falls last year. The task wasn’t as simple as stringing a wire from one side to the other, Coffey says. Power added balancing sticks that hung below the line to prevent it from rotating as Wallenda crossed. The firm also had to calculate the tension required to keep the wire from sagging under its own weight as it spanned the distance across the chasm. In addition to Syracuse, Power Engineers could look to open additional new Northeast offices in Pennsylvania and New Jersey, Coffey says. The employee-owned company has more than 30 offices in the U.S. and abroad and employs more than 1,700 people. The firm is headquartered in Hailey, Idaho.  Contact Tampone at ktampone@cnybj.com


February 15, 2013

TECHNOLOGY & INNOVATION

The Central New York Business Journal • 5B

WELCH ALLYN: The iExaminer is compatible with the iPhone 4 and 4S Continued from page 1

Often, they’re able to get only a fleeting glimpse. The iExaminer can use the iPhone’s camera to take anywhere from 15 to 75 pictures in just five seconds. There is bound to be at least a couple of good, useful images in the batch, Farchione says. “Rather than a fleeting image, it’s frozen on the phone and they can take more time to analyze it,” he says. Welch Allyn, based in Skaneateles Falls, is a medical-device manufacturer and employs more than 2,600 people. The iExaminer app also allows physicians to store multiple images from the same patient in a single file so photos can be compared from visit to visit.

Welch Allyn also sees potential for the product among medical students. Most second- or third-year students purchase a set of basic diagnostic tools, including an ophthalmoscope. Early efforts to promote the iExaminer among students have been promising, Farchione says. Many of them, he notes, already have iPhones. “Here is a tool to help them in mastering a difficult skill,” he says. “We definitely see a wide swath of target markets for this.” The Welch Allyn PanOptic Ophthalmoscope itself was a major advance in the field when it rolled out in 2003, Farchione says. It allowed physicians the necessary field of view they need to capture a useful look at the back of the eye. The iExaminer is compatible with the

iPhone 4 and 4S. The accompanying app is available for $29.99. Farchione met the inventor of the iExaminer, Dr. Wyche Coleman, at a conference. Coleman had developed the device and attached it to the PanOptic Ophthalmoscope. Farchione says he was intrigued. Welch Allyn ultimately wound up licensing the technology from Coleman, refining the design further, and commercializing it. The company had been developing prototypes for something similar on its own, but working with Coleman got the product to market much faster, Farchione says. Coleman could not be reached for comment. “This is the first affordable device to give almost anyone, anywhere the ability to capture a picture of the back of the eye,”

he said in a news release. “I was able to take this very lightweight, portable, inexpensive iExaminer to the summit of Mount Kilimanjaro in sub-Saharan Africa and take a picture of a patient’s fundus. From the top of the mountain, I then transmitted it to a doctor at Johns Hopkins University in the United States where he was able to analyze the image.” Work on the iExaminer could pave the way for further development of applications that combine Welch Allyn technology with mobile devices, Farchione adds. “It’s certainly a learning experience and there could be opportunities to capitalize on the space in other ways,” he says.  Contact Tampone at ktampone@cnybj.com

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Neracar: Motoring on two wheels 6B • The Central New York Business Journal

February 15, 2013

history from oha

n By Thomas Hunter

During the 1920s, businesses in Syracuse made washing machines, typewriters, automobiles, trucks, candles, china, mincemeat, beer, stained glass, traffic lights, caskets, even billiard tables. Yet another business made a motorcycle, but wouldn’t call it that; they called it the Neracar, a two-wheel vehicle. From 1921-1928, the Ner-a-car Corporation, which made the vehicle that more closely resembled a motorcycle, instead promoted it as more “near a car.” In 1916, Carl Neracher, assistant general manager at New Process Gear, received a U.S. patent for the Neracar. The first Neracars were made by Sheffield-Simplex, a British car and motorcycle company, because American investors resisted the design and withheld their finances. SheffieldSimplex built the Blackburn Neracar for Britain and its colonies from 1921-1927. In 1921, Neracher attracted American investors once British production was under way. His financial backers included Alexander H. Cowie, president of the Rochester and Syracuse Railway; Huntington B. Crouse, president of the Crouse-Hinds Company; Frederick P. Assman, vice president of Continental Can Company; J. Allan Smith, president of New Process Gear; and King C. Gillette, owner of the Gillette Safety Razor Company, “the man who shaves the world.” With about $2 million in capital, the Ner-A-Car Corporation opened at 196 S. Geddes St., with J. Allan Smith as the first president. The Ner-A-Car

Corporation offered its first Neracar in October 1921. It had a low-slung chassis and tubular frame, and featured a two-stroke, 221 cc engine. It weighed 190 lbs., had a maximum speed of 35 mph and was rated at 90 mpg. It also cost $225. The company boasted that the Neracar was cheap to operate, convenient to use, and safe to ride because of its low center of gravity; it also came with a luggage rack and its own tools. Women could ride the Neracar just as confidently as men in all attire. Advertisements promoted the Neracar as “an automobile on two wheels and should not be confused with what is commonly known as a motorcycle.” Riders could easily glide through traffic and conveniently travel from home to work, parks, tennis courts, golf courses, or anywhere else one desired to go. The advertisements went so far as to claim riding a Neracar provided “numerous health advantages not available to users of other vehicles. [It was] recommended by and ridden by many physicians.” To boost sales for the nascent company, Erwin “Cannonball” Baker, a notable auto and motorcycle racer, famous for his point-to-point recordsetting drives, rode a Neracar from New York to Los Angeles, spending just $15.70 on fuel and oil. Baker made the trip in seven days and got nearly 75 miles to the gallon of gas. Throughout the company’s history, many Neracars were sold throughout the United States, as well as in Europe, Africa, Japan, China, Australia, South America, and the Caribbean islands. Apparently, interest in the Neracar waned during the late 1920s, perhaps as other motorcycle models

and brands became available. The company dropped the price from $225, down to $185, and then to $175. British production ended in 1927, American production the following year. The company announced its closing on Feb. 29, 1928, for inexplicable reasons. Some Neracars still survive both in Syracuse, around the U.S., and in Europe. Locally, Frank Westfall, proprietor of the Ner-A-Car Museum in Syracuse owns, 1922 and 1925 Neracars; the

1925 was sold by a dealer in Paris. Other museums that have Neracars in their collections include the Southern Oregon Historical Society and the Riverside Museum in Glasgow, Scotland. Thomas Hunter is assistant director/collections curator of the Onondaga Historical Association (OHA) Museum (www.cnyhistory.org), 321 Montgomery St., Syracuse.

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The Central New York Business Journal • 7B

February 15, 2013

PROPERTY & CASUALTY INSURANCE AGENCIES

THE LIST Research by Nicole Collins ncollins@cnybj.com (315) 579-3911

Ranked by No. of P&C Producers Rank

1. Information was provided by representatives of listed organizations and their websites. Other groups may have been eligible but did not respond to our requests for information. While The Business Journal strives to print accurate information, it is not possible to independently verify all data submitted. We reserve the right to edit entries or delete categories for space considerations.

Central New York includes Broome, Cayuga, Chemung, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Seneca, St. Lawrence, Tioga, and Tompkins counties.

. 3. 4. . 6. 7. . 9. 10. 11. 12. 13.

The new Book of Lists is now available online!

. 15. .

n Download the 60-plus lists in Excel format files immediately to your desktop.

17.

n The electronic version contains 1,808 more contacts than the print edition, for a total of 3,385 unique contacts.

20.

To purchase the digital 2013 Book of Lists, go to cnybj.com/Research.aspx

. .

21. . . 24. . .

Name Address Phone/Website Vanguard Risk Managers; Bailey & Haskell; Reagan Agency 5232 Witz Drive Syracuse , NY 13202 (315) 457-1830/bhlinsurance.com Haylor, Freyer & Coon, Inc. 231 Salina Meadows Parkway Syracuse, NY 13221 (315) 451-1500/haylor.com Mang Insurance Agency LLC 66 South Broad St. Norwich, NY 13815 (607) 337-4400/manginsurance.com Day, Scarafile & Read, Inc. 125 Otsego St. Ilion, NY 13357 (315) 894-3131/dayscarafileread.com Grimsley Agency of NY LLC 5320 W. Taft Road North Syracuse, NY 13212 (315) 452-0123/grimsleyagencyofny.com Tompkins Insurance Agencies, Inc. 1051 Craft Road Ithaca, NY 14850 (607) 257-4440/tompkinsins.com Eastern Shore Assoc. Insurance 101 Cayuga St. Fulton, NY 13069 (315) 598-6000/esainsurance.com The Partners 825 Vestal Parkway West Vestal, NY 13850 (607) 754-1411/thepartners.com HBE Group, Inc. 410 Folts St. Herkimer, NY 13350 (315) 866-3140/hbegroup.com Gates-Cole Associates, Inc. 92 Genesee St. New Hartford, NY 13413 (315) 732-5183/gatescole.com Brown & Brown Empire State 500 Plum St., Suite 200 Syracuse, NY 13204 (315) 474-3374/bbempirestate.com ENV Property & Casualty Agency, LLC 7787 Oswego Road Liverpool, NY 13090 (315) 622-2931/insurewithenv.com Scalzo, Zogby, & Wittig, Inc. Campion Commons New Hartford, NY 13413 (315) 792-0000/szwinsurance.com Perry & Carroll, Inc. 100 W. Church St. Elmira, NY 14901 (607) 734-4291/perrycarroll.com Dominick Falcone Agency, Inc. & Falcone Associates. Inc 901 Lodi St. Syracuse, NY 13203 (315) 422-6128/falconeinsurance.com Moore Insurance Group Agency Inc. 143 W. Dominick St. Rome, NY 13440 (315) 371-4288/mooreinsuranceinc.com First Niagara Risk Management 126 N. Salina St., Suite 400 Syracuse, NY 13202 (315) 461-1282/firstniagara.com/Insurance Gilroy, Kernan & Gilroy 210 Clinton Road New Hartford, NY 13413 (315) 768-8888/gkginsurance.com CH Insurance 100 Madison St., Suite 100 Syracuse, NY 13202 (315) 234-7500/chinsurance.cc Steve Cardell Agency, Inc. 3306 E. Main St. Endwell, NY 13760 (607) 754-5466/stevecardellinsurance.com R K Johnson & Associates Insurance Agency, Inc. 4921 W. Genesee St. Camillus, NY 13031 (315) 468-3062/rkjohnsoninsurance.com Spencer Agency, Inc. 140 N. Main St. Spencer, NY 14883-0327 (607) 589-4456/spencer-agency.com The Burns Agency 29 West Park Row Clinton, NY 13323 (315) 853-5052/burnsagency.com AmeriCU Services, LLC 231 Hill Road Rome, NY 13441 (315) 356-3300/americu.org Crown Risk Management, LLC 221 S. Warren St., Suite 100 Syracuse, NY 13202 (315) 428-3830/crownrisk.com Sinclair & Andrews, Inc. 306 Hawley Ave. Syracuse, NY 13203 (315) 472-1010/sinclairandandrews.com

No. of P&C 2012 % of Policies Producers Premium No. of Sold: Business — Volume CNY — Total Employees ($ millions) Offices Personal

Areas of Specialization

Top Executive

Year Estab.

40 — 141

$100

9

80 — 20

health care, social services, John Haskell, CEO, BHL 1906 construction, manufacturing, Pierre Morrisseau, President, BHL municipalities, distribution/wholesale, J. Michael Reagan, President, JP transportation, professional liability Reagan Agency

40 — 200

$255

9

75 — 25

Victor A. DiSerio, Chairman James D. Freyer, CEO Bruce Wichmann, President

1928

30 — 120

NA

19

56 — 44

construction, transportation, public entities, employee benefits, manufactured housing, international, manufacturing workplace market, manufacturing, wholesale and distributors, public entities, construction

Richard Mirabito, CEO

1894

16 — 27

NA

5

50 — 50

David Read, President

1908

16 — 16

NA

4

50 — 50

all lines of commercial insurance, including safety group programs; all personal lines with emphasis on package programs auto-repair shops, car dealers, apartments, contractors, business owners, retail

Donald E. Grimsley, President & CEO

1989

15 — 27

$0

6

50 — 50

Mark J Kreydt, EVP

1876

14 — 59

NA

9

55 — 45

Robert K. Wallace, CEO & Chairman Martha Murray, President

1986

14 — 45

NA

4

60 — 40

William J. Oliver, President & CEO

1937

13 — 13

NA

3

25 — 75

commercial, risk management, school districts, municipalities, employee benefits, life, financial/investment services, personal personal lines, commercial lines, and life insurance

J. David Christman, CEO Lenore A. Gabriel, President

1994

12 — 49

NA

10

40 — 60

commercial and business lines

William T. Cole, President

1896

11 — 89

$227

3

90 — 10

10 — 15

NA

3

80 — 20

9 — 15

NA

1

60 — 40

9 — 33

$27

1

74 — 26

7 — 27

NA

1

67 — 33

7 — 7

NA

2

40 — 60

6 — 34

$30.5

2

43 — 57

6 — 38

NA

1

90 — 10

6 — 21

NA

3

85 — 15

5 — 7

NA

1

40 — 60

4 — 5

$3.2

1

35 — 65

4 — 6

$2.8

2

25 — 75

4 — 6

$0

1

30 — 70

3 — 7

$2.1

4

3 — 14

NA

3 — 7

$4

municipalities, contractors, manufacturing, not-for-profits, agriculture, healthcare, automotive, fire departments, hospitality schools, municipalities, contractors, nonprofits, employee benefits, life and financial services, personal

commercial & personal insurance, risk Nicholas J. Dereszynski, President 1905 management, green-building techniques, surety bonding, wealthmanagement consulting capable of handling all sizes of Terence W. Engels, Senior Partner 2010 corporate accounts in any industry Edward N. Vaughn, Senior Partner nonprofits, social-service agencies, Gary D. Scalzo, President manufacturing, wholesale, retail, office, contractors, financial-services industry contractors, municipalities, school John M. Holleran, Jr., Chairman districts, manufacturers, transportation of the Board

1992

1860

general commercial business, marinas, David J. Falcone, President 1920 hospitality risks, real estate Chris Marshall, President-Falcone Associates, Inc. auto/homeowners, business owners, workers' comp., pro. liability, med. practices, technology, contractors, retail, distributors moving & storage, construction, nonprofits, manufacturing, wholesalers, risk management.

Ryan W. Moore, President

2010

Kevin Delaney, Regional Manager, Risk Managment David Kavney, CNY Market Executive Lawrence T. Gilroy, President

1910

all forms of insurance

R. Kevin Johnson, Principal

1986

personal lines, property & casualty, small/medium commercial lines products, life insurance, group healthlife & disability property & casualty

David A. Belair, President

1910

David J. Burns, President

1919

10 — 90

personal auto, home, and life

James T. Lombardo, Chief Operating Manager

2002

1

98 — 2

post-injury claim management, losssensitive workers' compensation

Michael D. Cronin, President

2005

1

40 — 60

personal & business insurance

William A. Dee, President

1932

commercial lines, employee benefits, 1904 financial services, personal lines, risk management, wellness, health-care reform manufacturing, service organizations, Joseph Convertino, Sr., President 1999 nonprofits, distributors, health care, & CEO retail, technology, construction, home inspector programs commercial business policies, homeSteve I. Cardell, President 1976 based businesses, motorcycle, auto, home


8B • The Central New York Business Journal

February 15, 2013

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Central New York Business Journal 2/15/13  

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