Tuned Into Success: Symphoria readies for new season. Page 2.
Special Report: Banking & Wealth Management. Section B.
MIDDLE MARKET 2014
BUSINESS JOURNAL C
Vol. XXVIII • No. 18
May 2, 2014 • $2.00
North Country weighs the impact of Fort Drum drawdown
n CLEANING UP
BY NORMAN POLTENSON JOURNAL STAFF
WATERTOWN — On Feb. 24, Defense Secretary Chuck Hagel proposed substantial cuts in U.S. military spending, which included reductions in troop strength. The new U.S. Army budget called for a drop from the current level of 520,000 active-duty soldiers to a level as low as 440,000 troops. Fort Drum, which was already scheduled to lose 1,500 soldiers by 2015 based on a prior year’s downsizing, now faces the possibil-
PHOTO COURTESY OF PARAGON ENVIRONMENTAL CONSTRUCTION
A Paragon Environmental Construction crew works on a local clean-up job. The owner of Paragon Environmental Construction has decided to expand the business by opening a new concrete and masonry company. See story, page 3.
ity of a much larger troop drawdown that could add thousands to the number already scheduled. If federalbudget sequestration is not resolved by 2016, the number of soldiers lost could be even higher. At this time, the Fort Drum Regional Liaison Office (FDRLO) does not know the total number of troop reductions, but any loss of current soldier strength will have serious economic consequences. The anxiety level among North Country businesses and residents is understandable. Fort Drum, located
See FORT DRUM, page 8
Mirabito acquires Manley’s Mighty Marts BY ERIC REINHARDT JOURNAL STAFF
BINGHAMTON — The Mirabito family of companies has acquired the Manley’s Mighty Marts convenience store and gas station chain in the Southern Tier. The acquisition closed on April 28, says Jason Mirabito, vice president of sales and marketing at Mirabito. Financial terms were See MIRABITO, page 6
Michelle Capone, left, director of regional development at Development Authority of the North Country, and Dave Zembiec, right, deputy CEO of the Jefferson County Local Development Corp.
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2 • The Central New York Business Journal
CNYBJ BRIEFS News of note for and about Central New York businesses
Good Life Coffee Express formally opens in Yorkville YORKVILLE — Good Life Coffee Company,
which sells coffee fortified with vitamins and minerals, has formally opened Good Life Coffee Express (GLC Express) at 825 Oriskany Blvd. in Yorkville. The Greater Utica Chamber of Commerce was scheduled to be on hand for the grand opening on May 1. GLC Express, located next to Voss, has a drive-thru and serves all its coffee flavors including Sea Salt Caramel Mocha, Blueberry Crumb Cake, and Chocolate Peanut Butter Cup. It also offers breakfast sandwiches, bagels, Danishes, muffins, and biscotti. Good Life Coffee is also available at select Price Chopper, Walmart, and Nice N Easy locations, the company says. Good Life Coffee Co., part of Zams Enterprises, LLC, has roasting facilities in Marcy, N.Y. and Frenchtown, N.J.
May 2, 2014
Symphoria readies for 2014-15 season by eric reinhardt journal staff
SYRACUSE — Even as it wraps up its current slate of concerts, Symphoria, Central New York’s symphony orchestra, is already gearing up for next season. The symphony’s 2013-14 season, its first, ends on May 16 with a Pops concert, “Symphoria Goes to the Movies,” says Catherine Underhill, managing director of Symphoria. The first season included 22 ticketed concerts, additional “outreach” performances, and free outdoor concerts during the summer of 2013, Underhill says. The orchestra has performed about 35 concerts in all since last summer. On April 28, Symphoria announced a 20-concert, six-venue series for its 2014-15 season. The new season begins Sept. 20 with a showing of “The Wizard of Oz” with live orchestration, the first of four concerts in the “Pops Series.” “The orchestra will play what would be the musical soundtrack, so Judy Garland will still sing but the orchestral sound will be live,” Underhill notes. Symphoria holds Pops and Master Works concerts in the Crouse Hinds Theatre of the John Mulroy Civic Center at 411 Montgomery St. in Syracuse. Symphoria, one of only two co-op orchestras in the U.S., is the orchestra of Musical Associates of CNY, “a nonprofit organiza-
photo courtesy of symphoria
The musicians of Symphoria, Central New York’s symphony orchestra, stand for applause at the end of one of their performances.
tion made up of nearly 50 members of the former Syracuse Symphony Orchestra,” according to the Symphoria website. The season then continues with “Music of Three Centuries,” the first of six “Master Works” concerts, which debuts Sept. 27. Symphoria also returns to St. Paul’s Episcopal Cathedral at 310 Montgomery St. for four Sunday afternoon concerts as part of its “Casual Concerts.” In addition, the orchestra, with accompaniment from the Syracuse University Oratorio Society, will perform “Messiah” at St. Paul’s on Dec. 7. w x 6 3⁄8"h BW Mackenzie Hughes 67804 Estates Ad — CNY Business Journal: 7½"
Symphoria’s “Spark Concerts” are performed in non-traditional venues with music programs designed specifically for those venues, the organization says. The symphony will perform the “Spark Concerts” in downtown venues this season, returning to the Museum of Science and Technology, more commonly known as the MOST, on Nov. 1; the Everson Museum on Valentine’s Day; and to the WCNY Broadcast and Education Center on May 30, according to a Symphoria news See symphoria, page 6
Upstate Golisano Children’s Hospital receives $33,000 grant SYRACUSE — The Central New York
Community Foundation has awarded Upstate Golisano Children’s Hospital funding to help patients with hearing or vision loss. The $33,000 grant will support equipment and programs that help children and teens suffering from hearing impairment and vision loss related to cancer treatment and developmental conditions, the hospital said in a news release. More than 80 percent of children and young adults diagnosed with cancer survive with treatment, but many develop “late-effect medical problems,” Dr. Thomas Welch, medical director, Upstate Golisano Children’s Hospital, said in the release. “Chemotherapy and radiation can cause damage to hearing, vision and mobility, which is extremely difficult for the patients. This grant will help us give patients the tools they need to overcome these obstacles,” Welch said. Upstate Golisano will use the funding to provide devices and services through The Upstate Center for Development, Behavior and Genetics and the Dr. William J. Waters Center for Children’s Cancer and Blood Disorders. The hospital will subsidize hearing aids and glasses and will purchase KidWalk 2 mobility systems. Patients will use the systems during the Fit Families Group Visits program, which promotes inclusion in sports for children with vision impairment or blindness, the news release said. The Central New York Community Foundation administered the grant with funding from two separate field-of-interest funds. The J. Henry and Martha E. DeBoer Fund helps children with vision or hearing impairments and kidney disease. The J. Daniel Pluff Fund seeks to support children with special needs and their families, according to the Upstate Golisano news release.
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The Central New York Business Journal • 3
May 2, 2014
Paragon Environmental Construction expands services with new masonry company BY MEI WANG CONTRIBUTING WRITER
CICERO — After 15 years in the environmental construction service field, the owner of Paragon Environmental Construction, Inc. (PEC) has decided to expand the business by opening a new concrete and masonry business. Peter Paragon, owner and CEO of PEC, opened Paragon Masonry, LLC in February, seeking to meet the rising demand for these services in the Northeast. He named John Rubar managing director of Paragon Masonry. The two companies are based in the same building, located at 5664 Mud Mill Road in the town of Cicero (Brewerton area), and provide different but complementary services to clients. Paragon Masonry is projected to generate revenue of between $2 million and $3 million this year, according to Rubar. PEC’s annual revenue is projected at $12 million to $14 million, he says. “Paragon Masonry is a good fit for the services PEC is offering, and they are complementary to each other,” Paragon says. “Our goal is to provide customers efficiency through a whole package of services under one single contractor. There is no need to hire multiples.” Paragon explained that he opened the masonry business because the management team had been built and the foundation was in place. He declined to disclose how much he invested in Paragon Masonry. The management team of the newest Paragon company consists of three industry veterans with more than 70 years experience in the construction industry, collectively. Rubar has worked in the concrete and masonry business for nearly 25 years. His experience includes all aspects of the masonry and concrete business. Rubar says he joined Paragon Masonry in February for a “career change … and a change of environment.” He declined to name his last employer. Rubar will be responsible for supervising all the projects operated by
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Paragon Masonry. The two superintendents, Frank Miller and Tim Forsythe, will be in charge of running the projects in the field. Miller brings 28 years experience in the masonry field to the business and Forsythe brings 17 years in the concrete field. “Our core values are integrity and quality work,” says Rubar. Paragon Masonry has 16 full-time employees, according to Rubar. PEC employs about 85 people full time. The two companies own their 6,400-squarefoot, one-story office on Mud Mill Road. Paragon Masonry currently has four projects under development for clients in the health care, retail, and office sectors. The firm’s current customers, according to Rubar, include developers, universities, hospitals, general contractors, and construction managers. Paragon says the two businesses are going to support each other and will share all resources. Specifically, Paragon Masonry provides clients full service in the field of masonry, concrete, and restoration. PEC, founded in 1999, offers remedial and site-development services for private clients, municipalities,
PHOTO COURTESY OF PARAGON WEBSITE
A Paragon Environmental Construction employee works on lifting an old tank from the ground. After 15 years in the environmental construction service field, the owner of the Paragon Environmental Construction, Inc. (PEC) has decided to expand the business by opening a new concrete and masonry business.
engineers, architects, consultants, utility companies, and government groups. Rubar and his team seek to provide the same quality of work that PEC has offered to its clients for more than 15 years. “Our goal in 2014 is to align the two com-
panies’ work,” says Rubar. “We will have a very busy 2014 and are looking forward to growing the business.” q Contact The Business Journal News Network at email@example.com
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4 • The Central New York Business Journal
May 2, 2014
Siena survey: New York real-estate sentiment ‘strong’ “When it comes to the tug of war between buyers and sellers, the dynamic has changed. No longer do buyers hold all the cards. Rather, overall and most especially in New York City, sellers have what buyers want and must compete for. Conditions are more balanced in the Suburbs and Upstate, but it looks like large seller concessions and seemingly permanent yard signs are a thing of the past.”
by eric reinhardt journal staff
ew York state consum ers’ assessment of the real-estate market remains “strong” and they expect further growth in property values. That’s according to Donald Levy, director of the Siena (College) Research Institute (SRI), which released its latest survey report of consumer realestate sentiment in the Empire State on April 17. “Looking back over the last year, twice as many residents, more so Upstate and in the [New York City suburbs], see improving conditions than those [who] feel recent months have been a bust. As they look to the 12 months ahead, half of all residents expect more growth while only one in seven predict decline. No question about it, the sentiment in New York is that, once again, the real-estate market is solid and secure,” Levy said in the report. The overall current real-estate sentiment score among New Yorkers in the first quarter of 2014 is 11.2, down 0.8 points from the fourth quarter of 2013, ac-
cording to the SRI data. The figure is also above the point where equal percentages of citizens feel optimistic and pessimistic about the housing market. Looking forward, the overall future real-estate sentiment score is 21.5, up from 19.2 last quarter, SRI said. The sentiment figure also indicates New Yorkers expect the overall real-estate market and the value of property to increase over the next year. Consumers see the present as an improved time to sell with a score above breakeven at 9.6, up 6.5 points from last quarter, according to SRI. At the same time, they also see it as a good time to buy with a positive score of 1.8, down 5 points from the fourth quarter. The overall current real-estate sentiment score among upstate New Yorkers in the first quarter is 14.2, down 1.1 points from last quarter. The overall future realestate sentiment score is 17.6, up 3.5 points from the fourth quarter. The dynamic has changed when it comes to the “tug of war” between buyers and sellers, Levy said.
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Current Sentiment Scores 2010 - 2014
35.3 32.5 35.1 33.1 31.4
30.7 31.5 29.2 33.4 31.2 28.4 22.9
20.1 17.7 13.5 12.5 12.011.2 7.2 12.2 6.8 9.6 3.1 1.8
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13-4.8 2Q13 3Q13 4Q13 1Q14
-31.0-32.0 -28.3 -30.0 -40.1
-12.1 -6.8 -14.8 -19.6 -21.0 -24.1 -30.9
“No longer do buyers hold all point at which the survey mea- consumer real-estate sentiment Each Real Estate Sentiment score is derived through statistical diffusion weighted to consider response intensity. the cards. Rather, overall and sured equal levels of optimism throughout January, February, A sentiment score of zero (0) in any category, reflects a breakeven point at which equal levels of optimism and and March byor random telephone most especially New York City, and pessimism amongtothe pessimism amonginthe population have been measured relative thepopulaoverall market, or buying selling real calls to 1,886 York resisellers have can what buyers want tionlow relative toto the overall market, estate. Scores range from an absolute of -100 a high of 100 but scores below -50 orNew above +50state are both dents age 18 or older. As the and must compete for. Conditions or buying or selling real estate, rare and extreme. If 100 percent of people describe the overall market or either buying or selling as greatly sentiment scores are developed are more balanced in the suburbs according to SRI. improved the sentiment score would equal 100. Conversely, universal extreme pessimism would score -100. through a series of calculations, and Upstate, butand it looks Scores can range from an York ab- State. Scores measure reflectlike thelarge collective sentiment of residents of New seller concessions and seemingly solute low of -100 to a high of 100, “margin of error” does not apply, SRI says. q permanent yard signs are achange thingin consumer but scores belowwhile -50 future or above Current scores report recent sentiment scores measure consumers’ projected of the past,” Levy added. +50 are both and extreme, change in sentiment as they approach the coming year. rare In reviewing the Sentiment Scores look first at the relationship within each Sell, and Buy – between current and future. Reinhardt Current scores Contact at measure A sentiment score of category zero (0) –inOverall, SRI said. sentiment towards the present relative to the past while future projects in sentiment from the current firstname.lastname@example.org any category reflects a breakeven SRIrecent conducted the survey of change to one year from now. An increase from a current score to a future score denotes a positive change in sentiment relative to the present. In every case when considering any of the six sentiment scores, a net positive number indicates that the collective sentiment is such that people sense improvement while a negative net score predicts or measures a collective recognition of worsening. Today’s six scores are demonstrative of a strong real estate MEMBER FDIC market that is currently situated within reach of the ‘thriving zone.’ The SRI survey of Consumer Real Estate Sentiment was conducted throughout January, February, and March 2014 by random telephone calls to 1,886 New York State residents age 18 or older. As the sentiment scores are developed through a series of calculations, “margin of error” does not apply. For more information or comments, please call Dr. Don Levy at 518.783.2901. Data and charts can be found at www.siena.edu/sri/ . SRI is an independent, non-partisan research institute. SRI subscribes to the American Association of Public Opinion Research (AAPOR) Code of Professional Ethics and Practices.
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The Central New York Business Journal â€˘ 5
May 2, 2014
Bassettâ€™s new CEO, Vance Brown, starts July 1 BY ERIC REINHARDT JOURNAL STAFF
COOPERSTOWN â€” The board of trustees of Bassett Medical Center in Cooperstown has appointed Dr. Vance Brown as president and CEO of the Bassett Healthcare Network and Bassett Medical Center, effective July 1. Bassett made the announcement April 28. Dr. Brown comes to Bassett from Portland, Maineâ€“based MaineHealth, where he has been chief medical officer (CMO) since 2008, Bassett said in a Brown news release. MaineHealth is the largest integrated health system in the three northern New England states with eight member hospitals, three affiliated hospitals, and annual revenue of about $2 billion. The Bassett board of trustees has been preparing for the transition in leadership of the Bassett system since the time that [current president and CEO] Dr. William Streck announced he would be retiring, Dr. Thomas Morris, board chairman, said in the news release. â€œFinding a successor to Dr. Streck, whose vision and leadership have shaped the growth and development of Bassett for the past 30 years, was not easy. However, we believe we have found a strong leader who can further advance Bassettâ€™s mission of providing high quality care in a challenging health-care environment. We are delighted that Dr. Brown will be joining the organization,â€? Morris said. Brown calls his appointment at Bassett
Oneida Financial first-quarter profit stays steady BY JOURNAL STAFF
ONEIDA â€” Oneida Financial Corp. (NASDAQ: ONFC), parent company of Oneida Savings Bank, reported net income of $1,944,000, or 28 cents per share, in the first quarter, compared to $1,950,000, or 28 cents a share, in the year-ago period. The slight decrease in net income during the respective first-quarter periods resulted primarily from a drop in net interest income, an increase in non-interest expenses, and a rise in income-tax provision, Oneida Financial said in its earnings report. That was partially offset by an increase in net investment gains and a rise in non-interest income. Oneida Financialâ€™s subsidiaries include the 11-branch Oneida Savings Bank; the State Bank of Chittenango, a state chartered, limited-purpose commercial bank; Bailey & Haskell Associates, Inc., an insurance, risk management and employee-benefits firm; and Oneida Wealth Management, Inc., a financial services and investment advisory firm. q
â€œThe organization is highly regarded as a leader in health-system integration and in rural health-care delivery, and I look forward to working with the employees, physicians, and community to continue building on that reputation and assuring a strong future for the organization,â€? Brown said.
Maine, Brown also served as the chair of the Department of Family Medicine at the Cleveland Clinic, according to Bassett. Brown earned his undergraduate degree in biological sciences from Stanford University in Palo Alto, Calif. He then obtained his medical degree from the School of Medicine at Yale University in New Haven, Conn. Brown then completed his postgraduate residency training in family medicine at the University of North Carolina hospitals. Dr. Brown also completed a residency in internal medicine at Yale-New Haven Medical Center in New Haven, Conn. He later completed additional residency training in emergency medicine at UCLA Medical Center in Los Angeles. Both the American Board of Family Medicine and the American Board of Internal Medicine have certified Brown, according to Bassett. Bassett Healthcare Network is a healthcare system serving a 5,600-square-mile region in upstate New York. The organization includes six corporately affiliated hospitals, skilled-nursing facilities, community- and school-based health centers, and health partners in related fields. Bassett Medical Center is a 180-bed, acute-care, inpatient teaching facility in Cooperstown that employs 3,000 people. The medical center offers specialty care in several areas and maintains an academic program through its affiliation with Columbia University College of Physicians and Surgeons (Columbia P & S). Columbia P & S formally established Bassett as a medical-school campus in 2009, Bassett said. q
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â€œa privilege.â€? â€œThe organization is highly regarded as a leader in health-system integration and in rural health-care delivery, and I look forward to working with the employees, physicians, and community to continue building on that reputation and assuring a strong future for the organization,â€? Brown said. As CMO at MaineHealth, Brown has been responsible for all medical issues at the corporate health-system level. They included clinical strategic planning, integration initiatives, and clinical quality and safety improvement across the spectrum of care for the health system. He was also senior medical officer for the Maine Medical Center Physician Hospital Organization, with 1,100 physicians, acContact Reinhardt at cording to Bassett. [ÂŻ0$<6\PSKRULD %XVLQHVV-RXUQDO$G Prior to returning to his native state of email@example.com
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May 10 â€“ An Evening of Video and Music Palace Theater, Syracuse 7:30pm In collaboration with the Syracuse International Film Festival Come hear Symphoria perform music to our video contest winners!
Casual Spark Concerts Concerts
May 16 - Symphoria Goes to the Movies! Crouse-Hinds Theater, Civic Center 7:30pm Christian Hebel, violin Sean Oâ€™Loughlin, Principal Pops Conductor Symphoria explores Hollywood old and new with this diverse program.
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6 • The Central New York Business Journal
May 2, 2014
SYMPHORIA: It will also perform three “Young People’s Concerts” in the 2014-15 season Continued from page 2
release. “At the Everson, where we’ll be on Valentine’s Day, the plan is to have the museum have on exhibition art works that suggest, or include scenes of romance or love or passion … We are building our musical program to enhance those same themes,” Underhill says. Symphoria will also perform three “Young People’s Concerts” in the 2014-15 season, representing an increase from the two “Young People’s Concerts” in the current season. The symphony has scheduled those concerts for Oct. 26, Jan. 31, and April 18 at Inspiration Hall, which is located at 709 James St. in Syracuse.
Inspiration Hall is a donated venue with “high-end” audio and visual equipment. “… Because it’s being donated to us, the cost of projection equipment and screens and sound is included in that, so it’s a great opportunity for us to be able to enhance our performances but keep our budget modest,” Underhill says.
In an effort to make symphony music more accessible to more patrons, Symphoria has moved its box office downtown to 234 Harrison St. “It’s easy to locate. It’s easy to get in and out of,” Underhill says. The building owner at 250 Harrison St. is providing office space for Symphoria, including small storefront space at 234
Harrison for the box office. The arrangement continues at least through the end of this year, according to Underhill. Symphoria had been operating in donated space at 716 E. Washington before moving to its Harrison Street location in December. Besides the new location for its box office, Symphoria also added a smartphone app for last-minute concert goers. It also offers free tickets to anyone 18 years old or younger and $5 tickets to all college students, Underhill says. Season tickets for the 2014-15 Symphoria season are on sale now. Single tickets will go on sale May 15. Symphoria employs more than 50 people including 50 musicians and a staff of
seven, including Underhill. Three of the Symphoria staff members are also members of the orchestra, she says. Symphoria’s fiscal year continues through the end of August. “It’s been very successful … We’re seeing a lot of audience growth,” says Underhill. Financial contributions from individuals, foundation, government sources, and businesses account for about half of Symphoria’s budget, which totals about $1.5 million, according to Underhill. “We will be close to that,” she adds, referencing the amount of revenue Symphoria has generated in its first season. q Contact Reinhardt at firstname.lastname@example.org
MIRABITO: The company plans to operate the Manley’s stores “independently” Continued from page 1
not disclosed. “We’re acquiring the operations,” he says, noting the details of the deal are under a “confidentiality agreement.” Manley’s Mighty Marts currently has 17 stores in locations including Binghamton, Endicott, Endwell, Vestal, Johnson City, Windsor, Ithaca, and Glen Aubrey. Mirabito presently operates 57 Mirabito Convenience Stores, Convenience Express, and Quickway Food Store locations throughout Central New York. With the addition of the Manley’s locations, the Mirabito store count will grow to 74, the company said.
The new stores began shifting over on April 28. The acquisition is part of Mirabito’s “longterm strategy” to stick to energy-related businesses and grow in strategic areas, including convenience stores, Jason Mirabito says. “It creates density in our current footprint, making us more operationally efficient in our areas,” he adds. Mirabito has assured all customers that the changeover “should be seamless.” The company plans to operate the Manley‘s stores “independently,” keeping all the programs and offerings the same, Mirabito says. “As it makes sense and we’re able to,
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we’ll slowly start to transition the chain to Mirabito [signage],” he says. The acquisition adds about 200 employees to Mirabito’s workforce, which brings the total to about 950 employees, Mirabito says. Former Manley’s owner Tony Manley will not join Mirabito following the sale of his stores. “He will not be an employee of our company … He will not have anything to do with the operations of the convenience stores,” Jason Mirabito says. Tony Manley started his “business life” handling car repairs in Binghamton, according to the website for Manley’s Mighty Marts. He started his convenience-store business in
the early 1980s, the website said. Mirabito Convenience Stores is part of the Mirabito family of companies, which also includes Mirabito Energy Products, the Mirabito Rewards Program, according to the company website. The Mirabito family of companies operates in eight states with multiple divisions including natural gas and electric, homeheating products and services, wholesale energy products and services, convenience stores and gas stations, and Mirabito truck repair. q Contact Reinhardt at email@example.com
The Central New York Business Journal â€˘ 7
May 2, 2014
Obtain Financial Assistance to Install Solar and Wind Energy Systems
ew York Gov. Andrew Cuomo has repeatedly emphasized the importance of a diverse energy portfolio, including renewable-energy supplies. To facilitate the continued expansion of solar and wind energy across the state, the New York State Energy Research and Development Authority (NYSERDA) made available more than $13 million to qualified applicants who install solar and windenergy systems. The NYSERDA funding programs will award incentives on a first-come, firstserved basis, with applications accepted until either Dec. 31, 2015, or funds are fully committed to approved projects, whichever comes first. Program Opportunity Notice (PON) 2112 - Solar Photovoltaic (PV) Program Financial Incentives (the â€œPV Programâ€?) seeks to offset the costs of installing PV systems. PV technology consists of PV solar cells, which convert sunlight directly into electricity. The cells are composed of semiconductor materials connected together to form PV modules, which in turn form PV arrays â€” often seen assembled as panels on top of houses or in standalone installations. The PV Program provides cash incentives to eligible organizations that install new grid-connected PV systems that are 200 kW or less for their commercial sites. As of March 2014, about $2.29 million remained available in incentives. The base per-watt incentive for commercial systems is $1,000 per kW for the first 50 kW of installed capacity per meter, with an additional $6,000 per kW beyond that up to 200
kW per site per meter. However, incentives are capped based on a PV system size that does not exceed 110 percent of the total kWh consumption for the previous 12 months of electric usage, or based on the calculated yearly projected kWh of electric usage for new construction. To be eligible for the PV Program, the applicant installing the system (the customer) must receive its electric service from the major investor-owned utilities in New York. Additionally, the customers must install PV systems through VIEWPOINT an eligible installer, which is an individual NYSERDA has approved after determining the installerâ€™s technical competence in the PV field. A list of eligible installers is available on the NYSERDA website (http://nyserda.ny.gov/contractors/find-acontractor/photovoltaic-eligible installers. aspx). Incentives will be paid directly to the eligible installer for the site, but must be passed on in full to the customer. An additional NYSERDA funding opportunity is PON 2439 â€” On-Site Wind Turbine Incentive Program (the â€œWind Programâ€?). NYSERDA indicates that on-
ROBERT R. TYSON
MICHELLE R. BILLINGTON
site wind energy has the potential to lower an energy bill by 50 percent to 90 percent, depending on the amount of wind on site. The Wind Program makes $13.8 million available to encourage installation of approved grid-connected, end-use wind energy system, with $2.2 million each allocated to calendar years 2014 and 2015. Small wind turbines â€” ones with a rotor sweep area of 200 square meters or less â€” are funded through a separate set-aside budget line within the Wind Program. Incentives in the Wind Program are based on the estimated annual energy output (AEO) of the proposed turbine. The incentive amounts paid are as follows: n For an AEO of 10,000 kWh or less, customers receive $3.50 per kWh; n For AEOs greater than 10,000 kWh up to and including 125,000 kWh, customers receive $35,000 plus $1.00 per kWh for each kWh beyond 10,000; n For AEOs greater than 125,000 kWh up to and including 1,000,000 kWh, customers receive $150,000 plus $0.30 per kWh for each kWh beyond 125,000; and n For AEOs greater than 1,000,000 kWh, customers receive $412,500 plus $0.15 per kWh for each kWh beyond 1,000,000. A customer can receive a maximum of $1 million per site, but in any case the NYSERDA incentive awarded cannot exceed 50 percent of the total cost of installing the system. Furthermore, the maximum equipment size is 2MW (2,000 kW) per site per customer, and the systems cannot exceed 110 percent of the customerâ€™s grid-supplied
annual electric-energy usage. It is important to understand that the wind turbine itself must be eligible for funding â€” a list of preapproved turbines is available at http:// www.nyserda.ny.gov/energy-efficiency-andrenewable-programs/renewables/smallwind/eligible-wind-turbines.aspx. Even if a customerâ€™s project is eligible for the Wind Program, before applying, all customers should visit the New York State Small Wind Explorer website to ascertain the wind-energy potential at their site. Sites with â€œvery poorâ€? wind-energy potential may wish to consider whether it makes sense to install wind turbines. Whether installing a PV array or a wind turbine, site owners and/or operators will need to comply with any applicable permitting requirements, including local siting and zoning requirements, and the projectâ€™s environmental impact will also need to be evaluated pursuant to the State Environmental Quality Review Act (or SEQRA). Some of these responsibilities will be imposed upon the eligible installer, but these compliance requirements should be evaluated in advance. q Robert R. Tyson is a member in the Environmental and Energy practice group at Bond, Schoeneck & King, PLLC. Contact him at (315) 218-8221 or email: rtyson@bsk. com. Michelle R. Billington is an associate in the Environmental and Energy practice group at Bond, Schoeneck & King. Contact her at (315) 218-8227 or email: firstname.lastname@example.org
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8 • The Central New York Business Journal
May 2, 2014
FORT DRUM: Capone and Zembiec both express concern over the economic impact of further troop drawdowns Continued from page 1
about 10 miles northeast of Watertown, is the 800-pound gorilla that drives a tricounty economy. The importance of Fort Drum on the North Country is a fairly recent phenomenon in the history of this military installation. Back in the summer of 1907, Col. Philip Reade, the regimental commander at the Madison Barracks in Sackets Harbor, encouraged North Country leaders and the Watertown Chamber of Commerce to establish a new and larger military training site in the area. The next year, Ulysses S. Grant’s eldest son, Brigadier General Frederick Dent Grant, led 10,000 soldiers on maneuvers at Pine Plains north of the Black River and declared the location ideal for training. Funding to purchase property quickly followed, and Pine Camp opened on June 11, 1908. With the outbreak of World War II, Pine Camp added another 75,000 acres, displacing five villages, 24 schools, six churches, and eight cemeteries in Jefferson and Lewis Counties. Pine Camp changed its name to Camp Drum in 1951 and Fort Drum in 1974, when a permanent garrison was assigned.
10th Mountain Division formed
Everything changed on Sept. 11, 1984, when the Pentagon announced that Fort Drum would be the home of the new 10th Mountain Division, a light-infantry unit created for rapid deployment.
“We had three years to prepare for the addition of an estimated 29,000 people, including 11,000 soldiers, who would work and live on or near Fort Drum,” says Michelle L. Capone, director of regional development at the Development Authority of the North Country. The Development Authority employs 70 and is headquartered in Watertown. “That meant creating infrastructure to include water, sewers, solid waste, and housing. The answer was a regional authority to … [encompass] Jefferson, Lewis, and St. Lawrence Counties … Wisely, the authors of the legislation creating the Authority decided to use the expansion at Fort Drum as a vehicle to solve the area’s chronic economic problems.” The Development Authority wasted no time. In 1986, it began work to site, build, and operate a regional landfill; the solidwaste management facility located in the town of Rodman started operating in 1992. The next year, the Authority began connecting a 12-mile sewer line between Fort Drum and the city of Watertown wastewater-treatment facility and four town sewer districts. The same year, the Development Authority established the Housing Loan Revolving Fund, and in 1988 created the Affordable Rental Housing Program to entice builders to construct both market-rate and affordable housing units. In 1991, the City of Watertown, Fort Drum, and the Development Authority commissioned an 11-mile water line. As early as 1997, the Authority established a relationship with the U.S. Small Business Administration to
package its Pre-Qualification and 504 Loan Program (providing financing to small businesses for purchase of major, fixed assets such as equipment and real estate) applications. And in 2000, it began work on developing an open-access telecommunications network and broadband infrastructure to serve businesses and institutions in the region.
A second expansion
On May 11, 2004, the U.S. Army announced the assignment of the 3rd Brigade Combat Team to Fort Drum. “The community was faced again with having to meet tight time constraints to expand our infrastructure in order to accommodate an additional 5,000 soldiers and their families,” says Dave Zembiec, the deputy CEO of the Jefferson County Local Development Corp. headquartered in Watertown. “FDRLO commissioned an analysis of the housing market, which identified a need for 1,400 more units. Even with our success of the past 20 years, we still had to induce developers and lenders to support our efforts to create low- and moderate-income housing projects. In 2006, the Development Authority created the Community Rental Housing Program with $9 million in state and local funds to offer low-interest, longterm loans to developers.” “While housing was a top priority with the second expansion, the Authority also focused on channeling resources to promoting workforce growth,” adds Capone. “The Authority partnered with FDRLO, the Jefferson County IDA, the St. Lawrence County IDA, and the Lewis County Office of Economic Development and Planning to create ‘Drum Country Business,’ an economic-development task force. The task force targets certain industries, such as food processors, back-office operations, renewable-energy firms, and manufacturers, and promotes a regional marketing prospectus to attract industry to the area.”
So how big is this 800-pound gorilla? According to the “Fort Drum Fiscal Year 2013 Economic Report,” more than 37,000 soldiers and family members live and work in the area. Add to this another 3,895 civilians who work on the base and 2,615 military retirees who stayed in the area after their service. Not included in this report is an estimated 7,500 jobs off-base located
For more information or to purchase event tickets, please contact the Longhouse Council at 315-463-0201
primarily in health services, retail, wholesale, education, and accommodation and food services dependent on troop levels at Fort Drum. The total annual payroll was $1.17 billion and the Corps of Engineers awarded construction contracts valued at nearly $87 million. The Army spent an additional $29.22 million on medical services, $5.42 million on dental services, $34 million on residential construction located on the base, and distributed $48.61 million to local school districts to support the additional cost of military dependent children. The total direct impact was $1.42 billion. Not included in the report is an estimated $350 million to $400 million of additional economic impact created by the re-circulating of the Fort Drum payroll and base spending. Over the past 26 years, the cumulative financial impact is $19.76 billion. The more than quarter-century of investments has generated a long list of assets at the military installation, which today is New York state’s largest single-site employer: 432 miles of roads; 1.8 million square yards of runways, taxiways, and aprons; 4.1 million square yards of parking; 460 miles of electric lines; 77 miles of gas lines; 116 miles of sewer lines; 124 miles of fencing; and 475 miles of communications lines. To this, add 17.77 million square feet of space which includes on-post housing, maintenance buildings, warehouses, training facilities, administrative offices, dining rooms, and commissary. Capone and Zembiec both express concern over the economic impact of further troop draw downs, citing the loss of jobs and related payroll, diminished sales-tax revenue to communities, decreased construction, reduced payments to area public schools and lower enrollment at Jefferson Community College, and the effect of increased vacancies on the housing market. Both are optimistic, however, that Drum Country is now well-positioned to attract and grow business. “Our region has a deep labor pool with a higher percentage of young adults than either the state or the nation … [of whom] more than 87 percent have at least a high-school diploma” notes Capone. “Drum Country also … [boasts] a relatively low cost of living. We have access to national and international markets plus high-speed telecommunications … Recently, the North Country was included in a national project to test drones for commercial use. Much of the test-flight data will come from activity at Fort Drum. [And don’t forget] … the huge investment in infrastructure: The Authority alone has invested millions ($191 million) in assets to build up the area’s infrastructure in order to accommodate both past and future growth.” The 2013 financial statements for the Development Authority show net assets of $153 million, an operating surplus of $13.9 million, and net cash flow of $5.9 million. Every economic retrenchment is painful. Fortunately for Drum Country, those who oversaw the expansion of Fort Drum in the 1980s had the foresight to also focus on long-term, economic development. The 800-pound gorilla may slim down, but Drum Country is relatively well-positioned to offset further troop reductions at Fort Drum. Contact Poltenson at email@example.com
The Central New York Business Journal • 9
May 2, 2014
Business Journal C e n t r a l
N e w
Y o r k
The 50-year war on poverty
Volume 28, No. 18 - May 2, 2014 NEWS Editor-in-Chief........................Adam Rombel firstname.lastname@example.org Associate Editor.............Maria J. Carbonaro email@example.com Staff Writers.............................. Eric Reinhardt firstname.lastname@example.org ....................................................Norm Poltenson email@example.com Contributing Writers................Traci DeLore Mei Wang Columnists...............................William Barclay Creative Director . ............................Erin Zehr firstname.lastname@example.org Research Manager.................. Nicole Collins email@example.com SALES Sr. Account Manager.......Mary LaMacchia firstname.lastname@example.org Account Managers................. Daniel Buddie email@example.com Gustav Hoffmann firstname.lastname@example.org Marketing .......................BBB Marketing Inc. CIRCULATION Circulation Management....(315) 579-3927 Administrative President....................................Marny Nesher email@example.com Business Manager..................... Kurt Bramer firstname.lastname@example.org
We fought the war on poverty, and poverty won — Peter Ferrara
t’s now 50 years since President Lyndon Johnson proposed his war on poverty. To date, the nation has spent $20 trillion to solve the problem, twice the amount spent on all military conflicts since the American Revolution. During this past half century, federal spending in constant dollars on major means-tested programs exploded from $516 per-person, per-year to more than $13,000 per-person. Currently, the U.S. government spends more annually on antipoverty programs than it spends on national defense, Social Security, or Medicare. So how effective has the war on poverty been? When President Norm’s Johnson launched his campaign, the U.S. notes poverty rate stood at 15 percent. In 2012, the last year for which we have figures, the rate was about the same. No wonder Peter Ferrara, senior fellow at the Heartland Institute, says we’ve lost the war on poverty. But does anyone ask why? Two things are clear. First, people who live at poverty levels don’t work. In 1960, nearly two-thirds of households in the bottom quintile were headed by people who worked. Three decades later, the number working had dropped to one-third and only 11 percent
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women to have children out of marriage and discourages family unity. We did address the problem back in the 1990s, when Washington reformed the Aidto-Dependent-Families-with-Children program and renamed it Temporary Assistance to Needy Families (TANF). The key to reform was eliminating the matching program of grants and replacing them with finite grants to the states. Each state redesigned the program, requiring able-bodied recipients to work. The success of TANF was both quick and dramatic. Low-income families formerly on welfare increased their income by 25 percent. The percentage of families living at just half the poverty level plummeted 35 percent. Poverty among female-headed households declined by one-third. Not only did poverty decline, but the taxpayers also saved 50 percent of the program cost. That’s how you define success. But TANF was just one program. Today, Uncle Sam sponsors nearly 200 means-tested welfare programs projected to cost more than $10 trillion in the decade that began in 2009. America is smart enough to redesign our current welfare system to put people back to work and to encourage marriage. We really could win the war on poverty if we could overcome the ideology that the best way to create jobs is to redistribute workers’ money and if we promote marriage. After spending 50 years and $20 trillion trying to eradicate poverty, it’s time America casts the politics of envy overboard and replaces it with the politics of plenty for all. The keys are work and family. q Norman Poltenson is a regional staff writer with The Business Journal News Network. Contact him at firstname.lastname@example.org
Amid high auto-insurance rates in NY, higher fraud penalties could help
The Central New York Business Journal (ISSN #1050-3005) is published every week by CNY Business Review, Inc. All contents copyrighted 2014. All rights reserved. No part of this publication may be reproduced without the written consent of the publisher.
worked full-time, year-round. If we contrast the top 20 percent of earners with the bottom 20 percent, the Census Bureau says there are six times as many people working full time in the top quintile. If those in the lowest quintile worked full time, 75 percent of the poor children would no longer be classified as living in poverty. Conclusion: Today’s welfare system pays people not to work. Statistics from the sevenyear Seattle/Denver Income Maintenance Experiment confirms that generous welfare benefits reduce labor earnings by 80 cents on the dollar. On top of that, anyone desiring to forgo government largesse loses 50 cents worth of subsidies for every dollar earned. Add Social Security tax, a modest 10 percent federal income tax, and another 5 percent state income tax, and voila, the effective marginal tax rate is more than 70 percent. Now there’s an incentive to get off welfare. Second, out-of-wedlock births to single mothers promote poverty. The poverty rate for households headed by females with children is 44.5 percent compared to 7.8 percent for married couples with children. The poverty rate for black American families who are married is 11.4 percent; the rate for households headed by black females is 53.9 percent. If poor women who give birth outside of marriage married the fathers of their children, two-thirds of the families would be lifted out of poverty. The numbers are even more dramatic for those trapped in long-term poverty: 80 percent of all long-term poverty occurs in single-parent homes. Today, most welfare benefits are restricted to families with children, thus encouraging single women to pursue generous government benefits. Or put another way, our government policy pays
ew York state (NYS) has the unfortunate distinction of being a high cost-of-living state. Our autoinsurance rates are among the highest in the nation. Although there are several reasons for our high rates, fraud plays a large part. Indeed, according to estimates from the NYS Department of Financial Services, the agency that oversees insurance in our state, as many as 36 percent of all autoinsurance claims in New York contain some element of fraud. That leads to higher insurance premiums for everyone. New York state requires that motorists carry a minimum amount of auto insurance that covers bodily opinion injury and property damage and provides for no-fault coverage. Because this insurance is mandatory, I believe that the state has a special interest in ensuring NYS motorists’ insurance rates accurately reflect an insurance company’s underlying costs. When fraud is added to the formula, however, it perverts this calculation and creates higher insurance costs for all motorists. According
to the Insurance Information Institute, no-fault fraud and abuse in New York state cost consumers and insurers about $229 million in 2009. The institute further reports that when this extra cost of fraud is calculated on a per-claim basis, it adds $1,644 per claim, or 22.4 percent of the cost. According to the NYS Department of Financial Services, no-fault insurance fraud takes many forms. Fraud occurs when: (a) a driver and a body-shop worker agree to inflate the auto-damage claim and share the “profit;” (b) a doctor bills an insurer for services that were not provided; or (c) a driver stages a fake accident, and unscrupulous doctors and lawyers help “handle” associated medical claims and lawsuits. To combat this fraud, I have introduced the New York Automobile Insurance Fraud and Premium Reduction Act. This legislation provides a comprehensive solution to no-fault auto fraud by addressing the issue from all sides. While there are many facets of this legislation, four of the legislation’s major provisions are as follows. First, in an effort to combat fictitious or unnecessary medical treatment usually emanating from a staged accident, my legislation would direct the establishment of medical guidelines to be employed in the evaluation and treatment of injuries sustained in any auto accident. It also requires pre-certification for certain treatments
and equipment to curb fraudulent over-utilization of medical treatments. Second, the legislation creates a monetary incentive of between 15 percent and 25 percent of an amount recovered (up to $25,000) for persons who report suspected insurance fraud to law-enforcement authorities. Third, to make people think twice before committing no-fault fraud, my legislation expands the definition of insurance fraud and increases penalties for insurance-fraud violations. Finally, to ensure that whatever reduced costs that insurers receive as a result of the enactment of this legislation are passed on to the policyholders, my legislation requires the state superintendent of insurance recommend an appropriate one-time, no-fault premium reduction for every insurer, by rating territory, equivalent to the insurers’ cost savings. This recommendation would be binding on insurers unless the insurer can show that such a reduction would result in an underwriting loss. q William (Will) A. Barclay is the Republican representative of the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County. Contact him at email@example.com, or (315) 598-5185.
10 • The Central New York Business Journal
May 6 n Women TIES Syracuse event: “Lessons From A Stalled Business and a National Television Appearance” from 11:30 a.m. to 2:30 p.m. at The Maplewood Inn, 7th North Street, Liverpool. The guest presenter will be Bonni Stacconi Phelps of Baked Euphoria in Binghamton, whose bakery was featured on the nationally syndicated show “Bakery Boss.” For more information on this program or to make a reservation by May 4, visit www. womenties.com, or call (315) 708-4288.
May 8 n Nonprofit Governance as Leadership Seminar from 3 to 5 p.m. at the Binghamton University Downtown Center, 67 Washington St., Binghamton. This workshop will cover evolving ideas about how boards of directors can work in collaboration with the professional staff of their organizations. The seminar is for executive directors and board members who have experience in governance but are considering how to strengthen the board. David Campbell, associate professor and chair of Binghamton University’s Department of Public Administration, will conduct the seminar. The cost is $25. Registration is required and seating is limited. To register, visit http://tinyurl.com/pvmemsu. For more information, contact Joann Lindstrom at firstname.lastname@example.org or (607) 777-9178.
May 13 n The Greater Binghamton Chamber of Commerce 50th Annual Dinner and Meeting at 5:30 p.m. at The McKinley at Huron Campus in Endicott. The chamber will review the accomplishments of the past year, highlight plans for the future, and install the chamber’s new board members and officers. A special video presentation will be shown to commemorate this golden anniversary. The chamber will also recognize and honor four community leaders with awards. For more information, contact Amy Shaw, VP of member services, at (607) 772-8863 x313.
May 14 n Bidding and Estimating Workshop for Local Contractors from 6 to 9 p.m. at Jefferson Community College in Watertown. Presented by the SBDC, the workshop covers techniques in construction bidding and estimating. The workshop is geared toward construction company owners and estimators. Larry Colburn, of Bernier Carr Associates, is the presenter. The cost is $35 per person. Pre-registration is required. The deadline for registration is May 9. For more information or to register, contact the SBDC at (315) 782-9262.
May 15 n “Talk the Talk Club” Toastmasters group open house from 6:30 to 8 p.m. at the Fayetteville Free Library, 300 Orchard St., Fayetteville. This open house is an introduction to this Toastmasters group. The club normally meets the first and third Wednesday of the month at 7 p.m. in the boardroom of the Fayetteville Village Hall. For more information contact Edwin Woods, president, at email@example.com or call (315) 439-0085. n Entrepreneurial Society of Central New York May Program from 3 to 5 p.m. at The Century Club, 480 James St., Syracuse. The speaker will be David M. Aitken, DestinyUSA, and the topic will be “Driving the Big Picture.” Pre-registration is required; email: firstname.lastname@example.org or call (315) 422-9400 Programs are open to owners of businesses with annual revenue exceeding $500,000.
May 20 n CCMR Symposium. The event will cover understanding and controlling spins at the nanoscale, advances in memory, logic, and sensing technologies through nanoscale spin systems, commercial impact and production of nonvolatile magnetic memories, sensors, and imaging device lectures, poster sessions, and networking opportunities for industry and academia 2014. Sproull lecturer is Dr. Albert Fert, winner of the 2007 Nobel Prize in Physics. Speakers include those from IBM, NYU, MIT, and faculty and students from Cornell University. For more information, visit http://www. ccmr.cornell.edu/symposium/ n Rosamond Gifford Lecture Series – Friends
May 2, 2014
Business alendar C
of the Central Library present Eric Schlosser at 7:30 p.m. at the Syracuse John H. Mulroy Civic Center Theater. For ticket information, visit www. foclsyracuse.com or call (315) 435-1832; call the Oncenter Box Office at (315) 435-2121; or contact Ticketmaster at (315) 472-0700.
n Opening Doors to Government Contracting Conference for minority and women entrepreneurs from 8:30 a.m. to noon at the SUNYIT Student Center in Marcy. The conference will provide key information, resources, and practical advice on how to do business with federal, state, and local government agencies. It costs $20 per person to attend. For more information and to register by May 12, visit www.sba.gov/openingdoorsmarcy or call (315) 733-9848. n CEO Talks: A Roundtable Discussion presented by Wilmington Trust from noon to 1:30 p.m. at CenterState CEO, 115 W. Fayette St., Syracuse. This is the second of the CEO Talks events, where we will explore innovation hot spots including how to attract new startup businesses to our community and establish an innovation ecosystem. Seth Mulligan of CenterState CEO moderates. Seating for this event is limited to 25 registrants. The cost is $15 for members and $25 for nonmembers. For more information, contact Karen DeJoseph for additional information or to register, call (315) 4701997 or email: email@example.com
May 21 & 22 n Getting Started as a Small Business Owner Workshop: What it Takes to Start a Business from 6 to 8 p.m. at Tioga County Administrative Building, Lower Level - Classroom #1, 56 Main St., Owego. The facilitator will be Ginny L. Robert, owner of Business Plans That Rock. This free, two-session workshop is sponsored by the Entrepreneurial Assistance Program at SUNY Broome and Tioga County Economic Development & Planning. Space is limited, so please call the Tioga County Economic Development and Planning office at (607) 687-8255 to pre-register.
May 28 n Central New York’s Best Places To Work Event from 7:30 to 9:30 a.m. at the SRC Arena. Visit bizeventz.com for more information. Or, call Joyl Clance at (315) 579-3917. n Business After Hours and Mini-Showcase from 5 to 6 p.m. at SUNY Oswego Metro Center, The Atrium, 2 Clinton Square, Ste. 115, Syracuse. The event costs $10 for members and $20 for nonmembers. Contact Beth Savicki for additional information on vendor tables at (315) 470-1833 or firstname.lastname@example.org. For more information, contact Lisa Metot at (315) 470-1870 or email@example.com
May 29 & 30 n The Professional Practice of Sales (PPS) from 9 a.m. to 5 p.m. at the Courtyard Marriott Carrier Circle, 6415 Yorktown Circle, East Syracuse. Learn fundamental concepts and practices that will differentiate you as a sales professional. This course is designed for both experienced and novice salespeople in the role of business development. To register, visit http://www.lerengroup.com/services/sales-trainingprograms/live-sales-training-schedule/
June 2-7 n New York State Small Commercial Building Energy Auditor Training from 8:30 a.m. to 4:30 p.m. on June 2, 3, 4, 5, 6, with a four-hour site visit on June 7 at SyracuseCoE (New York State’s Center of Excellence in Environmental and Energy
Systems), Room 203, 727 E. Washington St., Syracuse. This seven-day pilot course was designed for experienced commercial energy auditors and other technically qualified individuals, and will train them to support New York State’s Energy Efficiency Portfolio Standard and the GJGNY Small Business and Not-For-Profit program. There is no charge for this training, however it is being funded collaboratively by NYSERDA. Consequently, acceptance is highly competitive. Submit your application to http://form.jotform.us/form/40065519620146. Applications due by May 23.
June 5 n Second Annual Advisors to Small Business Symposium from 8 a.m. to 5 p.m. at the DoubleTree by Hilton Syracuse. Hancock Estabrook, LLP will be presenting this event geared toward accountants, insurance brokers, agents, and other professionals from the small-business owner’s perspective. Topics will include Affordable Care Act updates, intellectual property, and other issues. For more information, contact Laurie Bantel at firstname.lastname@example.org
June 6 n CNY ASTD Breakfast Club from 7:30 to 9 a.m. at The Gem Diner, 832 Spencer St., Syracuse. CNY ASTD hosts an informal group for discussions on areas of expertise in learning and development roles. The topic will be “Performance Management.” For details, call (315) 546-2783 or email: info@ cnyastd.org
June 10 n A Time To Build Awards Program from 11 a.m. to 2 p.m. at the SRC Arena. Visit bizeventz.com for details or to nominate. Or, call Joyl Clance at (315) 579-3917.
June 12 n CNY BEST Learning and Performance Awards Ceremony at 5 p.m. at the DoubleTree by Hilton Hotel Syracuse, near Carrier Circle. CNY ASTD will be holding its 7th annual recognition of excellence in learning and performance practices in Central New York. The cost is $75. For more information, call (315) 546-2783 or email: email@example.com
June 19 n Entrepreneurial Society of Central New York June Program from 3 to 5 p.m. at The Century Club, 480 James St., Syracuse. The speaker will be David Reed, Reed CNY Business Law, and the topic will be “Thinking Outside the Box.” Pre-registration is required; email: firstname.lastname@example.org or call (315) 422-9400. Programs are open to owners of businesses with annual revenue exceeding $500,000.
ONGOING EVENTS 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) 364-7190 or email: email@example.com n Every Tuesday, Gung Ho Referral Group from noon to 1:30 p.m. at Ruby Tuesday Restaurant, 3220 Erie Blvd., DeWitt. The cost is $10 and includes lunch. For more information, contact Paul Ellis (315) 475-0392 or email: Paul. Ellis@ComfortSystemsUSA.com or go to www. GungHoReferrals.com n Every Tuesday, Syracuse Business
Connections from 3:30 to 5 p.m. at Hummel’s Office Plus, 6731 Old Collamer Road, DeWitt. The group meets to network and exchange referrals. For more information, email: Deb Angarano at firstname.lastname@example.org n Every Wednesday, Small Business Development Center at OCC from 4 to 6 p.m., Introduction to Business Startup at H-1 Hall. 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-on-one with a counselor from the SBDC for advice and customized assistance opportunities. Scheduled by appointment, call (315) 474-0910 or email: email@example.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: firstname.lastname@example.org n Every Thursday, Free Business Counseling with SCORE from 10 to 11:30 a.m. at the Tioga County Chamber of Commerce, 80 North Ave., Owego. Contact the Tioga County Chamber of Commerce to make an appointment at (607) 6872020. 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 email@example.com or call (315) 470-1802. n Third Thursday of each month meet CNY ASTD Meet the Leadership Happy Hour from 5 to 7 p.m. at Coleman’s, 100 S. Lowell St., Syracuse. Monthly informal networking with the CNY ASTD leadership team and other learning and development professionals. For more information, call (315) 546-2783 or email: info@cnyastd. org n Every Friday, 40 Above: Workers in Transition from 9:30 to 11:30 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 of work. Contact John A. Cruty at (315) 569-3964, or at firstname.lastname@example.org 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) 430-5249 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 make 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: email@example.com
To have your meetings or events in the Business Calendar, email them to firstname.lastname@example.org
The Central New York Business Journal • 11
May 2, 2014
PEOPLE ON THE MOVE: NEW HIRES & PROMOTIONS BANKING & FINANCE KeyBank announced that Stephanie Leonard, relationship manager, business banking, has been promoted to vice president, and Sabrina J. Webster has been named vice president and senior relationship manager, middle market, for the Central New York market. Leonard and Webster are based Leonard in Key’s Central New York headquarters office on Warren Street in Syracuse. Leonard joined Key in 2010 as a relationship manager for the business banking team. She earned bachelor’s degrees in political science and Webster history from Norwich University (Northfield, Vt.) and master’s degrees in political science and history from the College of St. Rose (Albany). She also holds an advanced risk management certification through the Risk Management Association. Webster is responsible for managing and developing relationships with large nonprofit and commercial customers. She previously was senior relationship manager and vice president, middle market, for First Niagara Bank in Syracuse. Webster earned her bachelor’s degree in economics from St. Lawrence University in Canton. She is a 2010 graduate of Leadership Greater Syracuse program.
EDUCATION & TRAINING Veteran continuingeducation administrator Jill Pippin has joined SUNY Oswego as dean of extended learning. She comes from Jefferson Community College in Watertown, where she was dean for Pippin continuing education and a member of the senior academic leadership team responsible for innovative and community oriented programs for adult and nontraditional students. At Jefferson, Pippin managed several associate-degree programs, an office at Fort Drum, military and veterans’ services, a high school program, summer and winter course offerings on campus, online, and at offsite locations, and Jefferson Express noncredit, workforce development and contract-
course programs. She earned an MBA at Franklin University in Columbus, Ohio, and a bachelor’s degree from SUNY Oswego in communication studies with an emphasis in interpersonal communication. Pippin received the Continuing Education Association of New York’s Outstanding Continuing Educator Award for 2013 and the 20 Under 40 Award from the Watertown Daily Times in 2009.
ENGINEERING Bergmann Associates announced that Cidney Jones has joined the company as a design engineer in the Syracuse office. Before working for Bergmann, she was employed by EA Engineering, Science Jones and Technology as an engineer in Hunt Valley, Md. Jones has a master’s degree in civil engineering from Penn State University, where she studied water resources engineering — damage and risk of urban-stream modification projects. Bergmann Bush Associates has also hired Victor Bush as a senior project manager in the Syracuse office. He previously worked for Tetra Tech as an energy management services manager for mining in Golden, Colo. Bush has a bachelor’s degree from the Colorado School of Mines in metallurgy and mineral processing, and is also LEED-certified.
INSURANCE David Waters has joined the Prudential Insurance Company of America’s Empire State Agency as a financial professional associate. Through Prudential’s Career Development Program, Waters completed an extensive Waters training and development curriculum and attained life and health licenses and Pruco Securities, LLC Series 6 registration.
MANUFACTURING Terry Zarnowski has joined Unimar, Inc.
as director of marketing and business development. He is an RIT graduate, electrical engineer, holds a number of patents, and has published articles covering topics such as robotics, machine vision, image Zarnowski sensing, optics, and sustainability. Zarnowski is versed in design and manufacture of electrical, mechanical, and software systems for military, automotive, clean room, electronics, manufacturing, and medical applications. His past experience includes the founding and management of his own system integration company.
REAL ESTATE Michele Reid has joined the staff of Gateway Properties of Upstate New York, Inc. as a real-estate agent. She also has a background in finance. Gateway Properties says it’s a family-owned real-estate firm that speReid cializes in rural properties in the Adirondack Mountains, Southern Tier, and Tug Hill.
RESEARCH Hezel Associates, LLC, has hired Christina Robles as a research assistant. Robles is involved in nearly every aspect of the projectmanagement process. She has substantial experience with quantitative data collection, analysis, and reporting. Robles received her bachelor’s degree in sociology from Le Moyne College. Most recently, she was employed as a program and data coordinator for Federal Grants at Learning through an Expanded Arts Program (LeAp) in New York City.
TECHNOLOGY ICS Solutions Group has hired a new chief operations officer, Robert LaFave. He comes with more than 12 years of customer service and sales experience in the technology field. LaFave previously was a sales consultant at SimplexGrinnell. Along with sales and customer service, LaFave escalated to managerial duties, including leading and motivating employees in order to successfully reach the goals and objectives of several technology firms. q
PEOPLE-ON-THE-MOVE NEWS GUIDELINES 1) All people-news items must be sent directly to email@example.com, or risk not having them considered for publication. 2) For this section, only new hires and promotions will be published. We do not publish awards or honors, professional examinations or designations, certifications, speaking engagements, and board assignments. We welcome other news regarding your company, which we may be able to use in other parts of the paper, but there is no guarantee that it will appear. 3) Allow at least two weeks for your news to appear in print. 4) Due to the sheer volume of requests we receive, we cannot respond to every inquiry regarding when the people-news item was published, nor can we send a copy of the issue in which it appears. It is critical that you watch the paper for the item yourself, or have a colleague or friend who receives the paper do so. If a hard copy of the paper isn’t available to you, your subscription allows you to search the archives online at www. cnybj.com. 5) Items must be sent in a Word doc or a format that can be cut and pasted or otherwise manipulated; no Read Only files will be accepted. Photos should be labeled and attached in a .jpg format. 6) Due to space constraints, we are not able to use all photos. So, your people-on-the-move item may appear without a photo even if you submitted one.
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12 • The Central New York Business Journal
May 2, 2014
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BANKING SPECIAL REPORT
& WEALTH BUSINESS OPTIMISM ON THEMANAGEMENT RISE
The Chase Business Leaders Outlook Survey asked thousands of small business and middle market executives what they think the next 12 months will bring—and where they stand now.
U.S. businesses bullish on revenue, less wary on regulation
To find out more about the 2014 survey, or to request a copy of the full report, visit chase.com/businessleadersoutlook or contact your Chase Business Banking or Chase Commercial Banking representative.
Chase creates new upstate market, names market leader
BRIGHTER VIEW OF A BROADER WORLD Executives are more optimistic about the national and global economies, sales and revenue, and profits. SMALL BUSINESS
BY TRACI DELORE CONTRIBUTING WRITER
SYRACUSE — JPMorgan Chase Bank recently reunited upstate communities into its new upstate New York market and tapped William Dehmer to lead the new market. The commercial banking middle market region combines seven markets — Albany, Syracuse, Rochester, Buffalo, Elmira, Western New England, and Northern Pennsylvania. The move makes sense for a number of reasons, Dehmer says. First, 32 of Dehmer’s 35 years in commercial banking have been in the upstate New York region, so he knows the territory. “I know the market. I know many of the companies, and I know the opportunities,” he says. During his 25 years with Chase, Dehmer has also served as team leader, regional manager, and division manager for the Albany and Syracuse markets; market manager for the Connecticut/Bronx/ Westchester market; and, most recently, as market manager for the New York Upstate East/New England markets since 2012. The upstate cities — minus New England and Pennsylvania — were previously united into one market until several years ago, Dehmer notes. At that time, it made sense to restructure markets to focus on growing the bank’s business in New England. Now that the New England market is doing well, it makes sense to shift focus once again and join the upDehmer state region back together, he says. Western New England and Northern Pennsylvania are included because the regions have many similarities. The change is a good one that allows Chase (www.chase.com) to streamline and sharpen its focus on the market, Dehmer says. The primary goal is to grow Chase’s market share across the region, particularly in New England and Pennsylvania. According to the FDIC’s June 30, 2013 market share report (the most recent available on its website), JPMorgan Chase Bank currently ranks fourth in the Syracuse metro area with a 7.31 percent share of total deposits through its 13 area branches. It’s behind M&T Bank (23.62 percent), KeyBank (18.24 percent), and First Niagara (7.37 percent). “All of our competitors are fine competitors,” Dehmer says, however, Chase brings some considerable offerings to the table, namely its size and scale. Chase is the U.S. consumer and commercial banking division of JPMorgan Chase & Co. (NYSE: JPM) and has $2.5 trillion in assets and locations in more than 60 countries. Chase has more than 5,600 branch offices and serves more than 4 million small businesses and 19,000 mid-sized businesses in 29 states. It’s that local connection that sets Chase apart, Dehmer says. “We pride ourselves on being a big bank with a local touch.” That means decisions are made locally and service is provides locally. Chase’s opportunity and challenge is to bring that size and scale to the local customer, he says. While he works to get acclimated to his new position, Dehmer will continue to oversee the New England market until his replacement is found. q Contact The Business Journal at firstname.lastname@example.org
EXPECT INCREASED REVENUE/SALES
+8% IN 2014
59% IN 2013
EXPECT INCREASED PROFITS
55% IN 2013
+7% IN 2014
EXPECT INCREASED REVENUE/SALES
73% IN 2013
EXPECT INCREASED PROFITS
64% IN 2013
+0% IN 2014
+0% IN 2014
SOURCE: CHASE BUSINESS LEADERS OUTLOOK
THE TALENT PARADOX CONTINUES
Despite high unemployment, more businesses express concern around finding people with the right skills to hire over the next 12 months.
Chase business leaders survey shows optimistic outlook SMALL BUSINESS
tively, from last year. And when it to increase sales in 2014. About 61 comes to their local economy, 63 percent of middle market compapercent middle market compa- nies and 59 percent of small busiMIDDLE MARKET BUSINESSES EYE of THE HORIZON nesses niesabout and conditions 57 percent oftosmall he 2014 are Chase Business Businesses generally most optimistic close home,busibut this year globalexpect to increase profits this year. nesses a positive view. Leaders Outlook shows optimism is on the rise—and future plans showhave it. The survey found that 52 perThat all adds up to good news increased optimism from U.S. and New York business lead- for Chase and the banking indus- cent of middle market New York 58% are globally active overseasDehmer sales to increase in the years. and 41 percent of New try%inexpect general, says. “Ifnext 5companies ers, which should translate intoand 76 an equally optimistic view for the our clients are growing, that cre- York small businesses expressed a banking industry, the banking ates opportunity for us to support positive outlook about the national economy. It found 48 percent of that growth.” company says. About 70 percent of middle mar- middle market companies and 43 Chase surveyed 3,500 business leaders and found that 73 per- ket companies anticipate a need percent of small businesses indicent of middle market companies for financing this year for initiatives cating a positive view about their (those with annual revenue be- including capital equipment, work- local economy. About 53 percent of middle martween $20 million and $500 million) ing capital, and acquisitions. About and 67 percent of small businesses 61 percent of small businesses will ket companies nationally and 50 (firms with revenue ranging from consider financing this year for percent in New York plan to add $100,000 to $20 million) are expect- needs including working capital, full-time employees this year, acing increased sales this year. More capital equipment, and technology cording to the survey. About 29 percent of small businesses nationthan half of survey respondents investments. The change is refreshing to ally and 21 percent in New York anticipate higher profits this year. “Things are feeling better. see after the long, slow recovery plan to add full-time employees. Things are getting better,” says from the recession, Dehmer says. In New York, about 29 percent of William Dehmer, Chase’s market “I think for a number of reasons, small businesses plan to add partmanager for its upstate New York you’re seeing a higher degree time employees. To view the full 2014 Chase of optimism,” including here in region. About 54 percent of middle mar- the upstate New York market, he Business Leaders Outlook, visit: chase.com/businessleadersoutlook. ket businesses and 42 percent of adds. In New York state, 70 percent of small businesses are optimistic about the nation’s economy, up middle market businesses and 63 Contact The Business Journal at 17 percent and 5 percent, respec- percent of small businesses expect email@example.com BY TRACI DELORE
BANKING & WEALTH MANAGEMENT
2B • The Central New York Business Journal
When Erna talks, people listen
Morgan Stanley is a wealth-advisory business located in Central New York, an area designated by Morgan Stanley to include Albany, Binghamton, Elmira, the North Country, and Syracuse. “As of February, we [had] more than $500 million in assets under management,” says the managing director, “and we accomplish this with a staff of six. The team assets have grown more than 50 percent just in the last five years. Our clientele is diverse … A lot of them have been with us for 25 years, and the average client has been with us for seven years. We are now getting to know their children and even their grandchildren.” In 2013, the typical account size for Morgan McReynolds’ clients was about $1 million and the clients’ net worth averaged $3 million.
BY NORMAN POLTENSON JOURNAL STAFF
“When E. F. Hutton talks, people listen.” — 1980’s advertisement tag line. ONEONTA — News flash from the Spectrem Group, an Illinois–based investor research and consulting firm: Total millionaire households in the U.S. jumped during 2013 to more than 9.6 million. That’s an increase of more than 600,000, or nearly 7 percent, over the previous year. The number of households with more than $5 million in assets grew to 1.24 million. What to do with all that wealth? The answer is to manage it. But how? Enter Erna Morgan McReynolds, financial advisor, managing director, wealthmanagement portfolio manager, and international-client advisor of the Morgan McReynolds Group — headquartered on Outer Chestnut Street in Oneonta. For the past six years, she has been recognized by Barron’s as one of “America’s Top 100 Women Financial Advisors,” based on assets under management, revenue generated for the firm, and the quality of the practice. Research magazine nominated Morgan McReynolds as “Woman Consultant of the Year.” Morgan Stanley named her an “International Client Advisor” because
Navigating change and adversity
NORMAN POLTENSON/THE BUSINESS JOURNAL NEWS NETWORK
Erna Morgan McReynolds, seated in her office in Oneonta, has been recognized by Barron’s as one of “America’s Top 100 Women Financial Advisors,” by Research magazine as “Woman Consultant of the Year,” and by the Financial Times as one of America’s “Top 400 Financial Advisors.” As the managing director of the Morgan McReynolds group at Morgan Stanley, she has more than $500 million in assets under management. of her experience working with non-resident clients and in 2010 invited Morgan McReynolds to sit on the company’s Business Owner Executive Council. In 2013, the financial-services firm named
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her to the Chairman’s Club. Most recently, the Financial Times included Morgan McReynolds on its list of America’s “Top 400 Financial Advisors.” The Morgan McReynolds Group at
Morgan McReynolds started with E.F. Hutton in 1986. The stock-market crash in the fall of 1987 forced Hutton to merge with Shearson Lehman/American Express in 1988. The brokerage house subsequently changed names at a dizzying pace, becoming just Shearson, then Smith Barney Shearson, Shearson again, Citi Smith Barney, and finally Morgan Stanley. Morgan McReynolds became the Oneonta group’s managing director in 2005. Through all the changes, Morgan McReynolds and her husband and business partner Tom Morgan focused on their clients. “I never believed in selling ‘hot stocks,’ ” asserts Morgan McReynolds. “My approach was to think of the client first and look at a client’s total picture and give advice on not only investing but also in financial planning, business succession, and estate planning. When I started, See ERNA, page 6B
BANKING & WEALTH MANAGEMENT
May 2, 2014
Q&A Editor’s note: The Investment Q&A feature appears regularly in the Banking & Wealth Management special reports of The Central New York Business Journal, spotlighting area investment professionals and their views on the financial markets and investments. In this issue, Alan Leist provides his outlook. Alan R. Leist III, CFA, chief investment officer at Strategic Financial Services in Utica. CNYBJ: What is your view on where the financial markets Leist are headed in the coming months? Leist: On my first day in the investment business, I received a particularly bad piece of unsolicited advice: “Always be bullish, no matter what!” This stance has always struck me as dangerous, a product of the Wall Street sales machine. I was reminded of that long-ago conversation at the start of this year when reading a popular survey of leading market strategists. All of these
“experts” were calling for the market to be up again in 2014. I couldn’t help but laugh. Everyone was bullish. The market may very well be up this year. We don’t know. Over the short-term, no one ever really knows for sure. At Strategic, we simply employ a disciplined, repeatable process to make sound decisions in protecting and advancing client capital over the long-term across market cycles. On occasion, we may even recognize that the bull deserves a short rest. U.S. Stocks: With a weather-related pause in the domestic economic recovery, an escalation of geopolitical risk, and the Federal Reserve in transition mode, equity investors were patient to start the year and refused to chase stocks after 2013’s historic rally. Nevertheless, a familiar theme quickly returned. As soon as the market showed any sign of weakness, buyers stepped in to put a floor under U.S. stocks in the absence of attractive alternatives elsewhere. This pattern has been repeated consistently for the past several years, instilling an imprudent sense of complacency among investors. Market sentiment and valuation tend to
The Central New York Business Journal • 3B
swing like a pendulum, occasionally moving to the outer edges, but rarely pausing in the middle. Five years after the final washout in 2009, the momentum remains on the side of the bulls in a low-interest-rate world that supports ever-higher prices for stocks and other risk assets. However, the market has recently shown some signs of exhaustion, most notably in the type of speculative stocks that often emerge at tops. A reacceleration of economic growth is needed to drive corporate sales and to justify current valuations. As we wait for fundamentals to catch up to stock prices, the market likely will mark time within the recent range, occasionally retesting lows and flirting with new highs. Bonds: A sell-off in the bond market was all but guaranteed at the start of 2014. As is often the case, however, the market moved against popular opinion. A rally ensued as the economy showed some signs of weakness and the Russian-Ukraine conflict drove investors toward safety. Yes, fixedincome investing will be a challenge for the next few years, but bonds are the ballast in a well-diversified portfolio, allowing for prudent risk to be taken elsewhere. A high quality, laddered, relatively short-duration strategy will help protect investor capital until better values emerge in other segments of the capital market and interest rates inch closer to levels that are more normal. CNYBJ: Provide specific recommendations for investments that clients should be making right now. Leist: At Strategic, we have been net sellers of small and mid-cap stocks in re-
cent months despite the persistent calls of the bulls. Client portfolios have been rebalanced back to targets in domestic equities in order to capitalize on better values elsewhere in the market. Sales proceeds were directed toward international stocks, including emerging markets, commodities, and even cash. A note on emerging markets: valuation and demographic trends support attractive longer-term returns. Investors should expect bouts of near-term volatility that present an opportunity for entry at favorable levels. CNYBJ: What do you see as the greatest risks investors need to be aware of and seek to avoid in the coming months? Leist: A disorganized unraveling of Federal Reserve policy, corporate-margin compression, and a still-fragile global recovery remain among the key risks for 2014. Until there is a pick-up in the pace of top-line growth, segments of the market appear to be fully valued, if not outright pricey, at current levels. With valuation no longer a cushion, we are due for a healthy correction that tests the conviction of investors and sets the stage for the next leg higher in the bull market. Acting as an offset to dysfunctional policy making in Washington, the Federal Reserve’s monetary stimulus program has distorted asset prices across the entire investment spectrum. Investors must resist the temptation to reach for returns. Protecting capital is the first rule of successful investing. Insist on quality with a margin of safety in every investment decision. q
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4B • The Central New York Business Journal
banking & Wealth management
May 2, 2014
Tompkins Financial profit rises 9 percent in first quarter compared to $17.39 million a year earlier. Credit quality improved in the latest quarter with non-performing assets repreITHACA — Tompkins Financial Corp. senting 0.81 percent of total assets, the low(ticker symbol: TMP) reported that its est this percentage has been over the past net income rose more than 9 percent to five years, the banking company said. Tompkins Financial took a provision for $12.6 million in the first quarter from loan and lease losses of $743,000 in the $11.5 million in the year-ago quarter. The Ithaca–based banking company’s first quarter of 2014, down 28 percent from earnings per share rose over 6 percent to $1,038,000 in the first quarter of 2013. Net loan and lease charge-offs totaled 84 cents in the first quarter from 79 cents a $699,000 in the first quarter of 2014, down year earlier. “We are pleased to start 2014 with the from $1 million a year prior. Tompkins Financial’s total loans of strongest first quarter in our history,” Tompkins Financial President and CEO $3.2 billion as of the end of this year’s first Stephen S. Romaine said in the earnings quarter were up 7 percent over the same period in 2013, and report. “In addition increased an annualto earnings per share ized 1.3 percent over growth over the first year-end 2013. quarter of 2013, loan The company also and deposit levels QUARTERLY REPORT declared a quarterly increased from the same period last year, and from the most re- dividend of 40 cents per share, payable on cent prior quarter. At the same time, we saw May 15 to shareholders of record on May 5. Tompkins Financial is a financial-serviccontinued improvement in nearly all credit es firm serving the Central, Western, and quality indicators.” Tompkins Financial’s net interest income Hudson Valley regions of New York and increased almost 5 percent to $40 million in the the Southeastern region of Pennsylvania. It is parent to Tompkins Trust Company, The first quarter from the same period last year. The net interest margin for the first quar- Bank of Castile, Mahopac Bank, VIST Bank, ter of 2014 was 3.6 percent compared to Tompkins Insurance Agencies, Inc., and Tompkins Financial Advisors, which offers 3.57 percent in the first quarter of 2013. q Noninterest income at Tompkins wealth-management services. Financial was nearly unchanged at $17.43 million in this year’s first quarter, Contact Rombel at firstname.lastname@example.org By Adam Rombel Journal Staff
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NY Estate Tax Update Creates Estate-Planning Challenges
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egislation that went into effect on April 1 makes broad changes to New York’s estate and gift-tax laws, as well as certain trust-income tax rules. Although these estate-tax changes were intended to make New York a less expensive state in which to die, they could have a significant impact on some estate plans currently in place and necessitate a reevaluation of those plans for individuals seeking to VIEWPOINT minimize the impact of taxes on their death. A number of features of this legislation will directly affect the “cost of dying” in New York: n Estate-tax exclusion increases n The estate-tax “cliff” n Gift add-back Before the new law was passed, people in New York whose estates were valued at $1 million or less were exempt from estate taxes. The problem is that $1 million isn’t what it used to be and over the years we have seen an increase in the number of estates that meet or exceed that $1 million threshold. That threshold triggered a tax-
Richard J. Marsh and Sharon L. Klein
able event even though the estate was still too small to trigger federal taxes. In a nutshell, the exemption from the state’s estate tax increases from $2,062,500 in assets in 2014 to $5,250,000 by 2017. Beginning in 2019, the New York exemption amount is expected to equal the federal estate-tax exemption. The goal of the state legislation was to level the playing field between New York, with its high tax structure and very low estate-tax exclusion, and other states. That goal was only partially achieved, as the law kept the top tax rate — 16 percent — intact. Gov. Andrew Cuomo had sought to lower the top rate to 10 percent. The increasing exemption amount will benefit many affluent New Yorkers, but will have little impact on the state’s wealthiest residents — who still could save millions of dollars by moving out of state. For those wealthiest people, it is the top rate that matters most, not the exemption. In addition to the top tax rate, the new legislation also includes an “estate tax cliff” if an estate exceeds the exemption by more than 5 percent. That means if a resident who dies has a taxable estate that exceeds See estate tax, page 6B
banking & Wealth management
May 2, 2014
The Central New York Business Journal â€˘ 5B
First Niagara CFO: No current plans to consolidate more branches related to executive departures. Excluding restructuring charges, First Niagara produced operating earnings of â€‚ ollowing first-quarter earnings that 17 cents a share in this yearâ€™s first quarter, â€‚ were reduced by charges related which was in line with analystsâ€™ consensus â€‚ to recent branch closures, First estimates, according to Yahoo Finance Niagara Financial Groupâ€™s chief financial data, citing the estimates of 12 stock anaofficer, tells The Business Journal News lysts. Network, the banking company is not planFirst Niagara, the fourth largest bank ning to close any more branches at this in the 16-county Central New York market time. ranked by deposit market share, closed 10 â€œWe donâ€™t have any current plans to branches companywide in the first quarconsolidate more branches,â€? Gregory W. ter. They included two Southern Tier ofNorwood, CFO, says in an interview. fices â€” one each in Owego and Conklin. First Niagara First Niagara (NASDAQ: FNFG) also shuttered on April 24 reported five branches in that its first-quarter Pennsylvania and net income declined three in Western 13 percent from the QUARTERLY REPORT New York. The year-ago period, moves came in amid restructuring costs to close branch response to customersâ€™ increased use of offices. its online, mobile, and telephone-banking The Buffaloâ€“based parent company of options, the banking company says. First Niagara Bank N.A. generated net In all, First Niagara has consolidated 70 income available to common shareholders branches since 2011, according to a docuof $51.9 million, or 15 cents a share, in the ment it presented to investors on April 24. first quarter, which included $8.3 million â€œWhat customers want to do in branches in after-tax restructuring and severance is changing. We will continue to look at the expenses related to branch closures and physical footprint [of the branch network] staffing moves. as well as what people want in branches,â€? Thatâ€™s down from $59.7 million, or 17 Norwood says. cents, in the first quarter of 2013, which First Niagara said in its earnings report included $4.3 million in after-tax charges that the first quarter was highlighted by By Adam Rombel Journal Staff
â€œStriving to run a clean, safe facility where local commerce can prosperâ€?
CNY RACK and SURPLUS
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continued balance-sheet growth, steady credit quality, and stable core net interest margin. Average loans increased 8 percent annualized compared to the prior quarter. Average commercial business and realestate loans rose 9 percent annualized over the previous earnings period. First Niagara generated â€œreally strong loan production, maybe stronger than even I anticipated,â€? Norwood says. â€œAnd itâ€™s what I would say is high-quality loan growth.â€? Norwood notes that the bank didnâ€™t depend on making large loans to generate its growth. The largest loan First Niagara made in the quarter was only $12 million, he says, adding that the average loan was probably â€œhigh single digitsâ€? in millions of dollars. When asked how well the banking companyâ€™s Central New York operation is performing, Norwood says, â€œWe still have a significant presence in that market â€” 700 to 800 employees. The entire upstate market has performed very well for us, [producing] high single-digit [percentage] revenue growth.â€? First Niagara issued its earnings report before the open of trading on April 24. In the three trading days that followed, its stock price fell by 3.4 percent from $9.25 to $8.94, as of the close on April 28. Year to date, the stock was down almost 16
First Niagara Financial Group
Symbol: FNFG Recent price: 8.85 52-week high:â€ˆ11.34 52-week low:â€ˆ8.19 52-week change: -4.32% Exch:â€ˆNASDAQ 6-month history
11 10.5 10 9.5 9 8.5 0
SOURCE: YAHOO FINANCE
percent. Going forward, analysts are expecting First Niagara to generate earnings per share of 18 cents on revenue of about $360 million in the second quarter, ending June 30, according to Yahoo Finance data. First Niagara says itâ€™s a multi-state community-oriented bank with 411 branches, $38 billion in assets, $28 billion in deposits, and about 5,800 employees serving New York, Pennsylvania, Connecticut, and Massachusetts.Â q Contact Rombel at email@example.com
6B • The Central New York Business Journal
BANKING & WEALTH MANAGEMENT
May 2, 2014
ERNA: Today, the Morgan McReynolds Group serves clients in 22 states Continued from page 2B
Start Early. Put your business in the hands of one of America’s safest and strongest credit unions. Join today!
2OCHESTER s 3YRACUSE 800-242-2120 607-754-7900
Upcoming Special Reports
we were called brokers. Now, we’re called financial advisors, but I always considered my role to be advisory. Whatever the name, it’s the idea of looking at the total picture and matching the client’s aspirations to a strategic plan, [i.e.,] total financial planning. There is no cookie-cutter approach; no canned plans. Every client is different.” Morgan McReynolds says that the secret to her success is listening. “[In my first career], I was a journalist. I became passionate about writing after I won a Dow–Jones scholarship to a summer writing program at Blair Academy in New Jersey. I took several jobs as a local newspaper reporter, including a … [stint] as a sports reporter, even though I was not athletic and knew nothing about sports or the lingo. I even talked a newspaper editor into making me the news director, to which he agreed as long as I sold advertising in addition to directing the news. As a reporter, I was always a good listener which prepared me to listen to my financial clients.” Tom Morgan, now retired from the business, has a broader view of the reasons for his wife’s success. “Her clients understand she cares about them,” avers Morgan. “She also has an unbelievable memory for their details and situations, wishes, and fears. If their affairs are particularly complicated, she has the perfect mind for dealing with such. [Erna also] … brings excellent judgment to their situations. Many older clients feel she is like a daughter to them … [while] many younger clients feel she is like a mom to them. Her memory and judgment have helped her find solutions to some … [very] complex problems … [and her] solutions …
Target your market better by strategizing around our special reports and research lists focusing on specific industries. Whether it is to advertise and market to these industries or simply to get your name out there, your sales rep can help to make sure you are included in these issues.
Friday, May 9, 2014 Employee Benefits/HR/Insurance
Friday, May 23, 2014 Health-Care & Education
Companies are faced with keeping up with employment regulations, compensation trends, and talent management. This section helps businesses understand resources that are there to help guide them through all of these facets. Whether it be to outsource these tasks or manage them internally.
With the ever-changing health-care landscape, this report focuses on sorting through all the words and understanding how these changes affect businesses. We will help you understand the challenges, what solutions are out there, and how others might be dealing with the same issues.
Advertising Space Deadline: May 2, 2014 Top Ranks List: Office Furniture Dealers MBA Programs
Advertising Space Deadline: May 16, 2104 Top Ranks List: Website Development Firms
Friday, May 16, 2014 Technology/Innovation & Telecom
Friday, May 30, 2014 North Country Focus/Small Business
The IT and telecom industries are a crucial part of doing business. What’s new in these industries? Learn about some area leaders in technology. This special report will also be a resource for business people looking to upgrade their technology needs to increase efficiencies in their company. Advertising Space Deadline: May 9, 2014 Top Ranks List: SBA Loans and Lenders
(315) 579-3907 www.cnybj.com
This issue will cover expanding businesses and key trends and projects in Northern New York, along with our usual great coverage of growing small businesses and key small-business trends.
Advertising Space Deadline: May 23, 2014 Top Ranks List: Financial Planners
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have saved clients considerable amounts of money … [Erna also] treats and trains her staff with care and caring. They have been faithful to her over many years, and together they are a formidable team.” When Tom Morgan was in the business, he developed “Money Talk,” a radio show that runs on weekdays and also appears as a syndicated newspaper column. The radio and newspaper recognition attracted large numbers of people to his investment seminars. Those who attended already knew the Morgan name and investment philosophy, which proved more effective than the typical prospect interviewing a financial-investment advisor. Not surprisingly, many of his attendees became clients. The broadcasts and columns brought investors from Pennsylvania, Ohio, and locations all across Upstate.
How she started
Ultimately, Erna Morgan McReynolds’s success is due to her brains, hard work, and grit. She grew up in Gilbertsville, N.Y., an historic village in Otsego County, population 399. The family was poor, and Erna, at an early age, took responsibility for overseeing the family budget. When her father was unable to work, Erna’s mother took a job at the Bendix Corp., requiring Erna at age 8 to assume the cooking role for the family. In her early teens, she worked after school and on weekends, while earning perfect grades in school. She found time to develop a love for classical music and also enrolled in a Cordon Bleu cooking course. McReynolds read every book in the school library and then in the public library, while finishing her high-school curriculum and simultaneously taking some college courses. Her passion to live in another country took her to New Zealand, where she landed a job on a daily newspaper as the energy reporter. Shortly after she took on the assignment, the 1973 energy crisis erupted. Her stories got front-page leads. Next, she journeyed to London where she won a producer’s spot on the London Broadcasting Corp., eventually producing the most widely listened-to radio program in Europe. McReynolds was 23. Tom Morgan, who had also grown up in Gilbertsville, was courting McReynolds
at the time — long distance. He convinced her to return to New York City, where she became a producer for NBC radio and television, including the “Today Show.” Today, the Morgan McReynolds Group serves individual and institutional clients in 22 states. It also provides consulting services to two Caribbean nations — Anguilla and St. Lucia. “In 1994, we signed an agreement with the National Bank of Anguilla to provide a broad range of investment services to its customers,” notes Morgan McReynolds. “The agreement was unique. We were proud to have been part of the development of the island … It’s important that their capital stays there and works for the community.” The Morgan McReynolds Group also pioneered the concept that some of these countries’ social-security funds should be invested in stocks and bonds, and they pushed two of the islands to create and endow community foundations. In addition to managing the group practice, Morgan McReynolds is active in the Otsego and Delaware counties’ communities. She helped to found the Executive Service Corps of the two counties, chaired the United Way, and served on the boards of the chamber of commerce, Hartwick College, and Friends of Bassett. She also served on the boards of the Orpheus Theatre, the Indian Hills Girl Scout Advisory Council, the New York State Historical Association Development Committee, and the Catskill Symphony Orchestra. Along with husband Tom, she has been an active fund-raiser for the Franklin Stage Co. and the Catskill Area Hospice. In 1997, the couple set up the Tom Morgan & Erna J. McReynolds Charitable Foundation, which makes grants for cultural, educational, and artistic endeavors. In 2011, according to the most recent reporting on file, the foundation reported assets of $328,241 and revenue of $47,837. It disbursed $20,855. Morgan McReynolds and her husband of 30 years reside in the town of Franklin in Delaware County, surrounded by 100,000 daffodils. As long as people continue to listen to her, she has no plans to retire. q Contact Poltenson at firstname.lastname@example.org
ESTATE TAX: The legislation also includes provisions dealing with gifts Continued from page 4B
the basic exempted amount by more than 5 percent, the entire estate will be subject to the New York estate tax. The legislation also includes provisions dealing with gifts. These provisions could be tricky to navigate because they require gifts made within three years of death to be added back into the value of the estate, increasing the amount of the estate tax owed. As a way to keep individuals from simply giving away assets on their deathbed to avoid taxes, New York included a threeyear, look-back window on gifts. Simply, if a person dies within three years of making a gift, the amount of the gift is added back to the estate. The calculation involved does not affect the federal tax, but could lead to a higher state tax bill. This gift-giving add-back also seems to
include out-of-state property, such as a vacation home in Florida or North Carolina. If that property is given away within three years of a person’s death, it appears to be added into the value of the estate and taxed even though it is in another state. Authors’ note: This article seeks to provide general information only and is not intended to provide specific investment, legal, tax, or accounting advice for any individual. q Richard J. Marsh, Jr. is group vice president, upstate New York market leader for Wilmington Trust, N.A. a unit of M&T Bank Corp. Based in Syracuse, he manages Wilmington Trust’s Upstate Region. Sharon L. Klein is managing director of family office services and wealth strategies at Wilmington Trust and chair of the Trusts, Estates and Surrogate’s Court Committee of the New York City Bar Association.
The Central New York Business Journal • 7B
May 2, 2014
COMMERCIAL PROPERTY-MANAGEMENT FIRMS
THE LIST Research by Nicole Collins email@example.com (315) 579-3911 Twitter: @cnybjresearch
UPCOMING LISTS May 16
SBA Loans and Lenders
Independent Living Facilities
Ranked by Total Square Feet Managed in CNY Rank
Types of Properties: Office/Industrial Retail/Other 13%/5% 80%/2%
Sutton Companies 525 Plum St., Suite 100 Syracuse, NY 13204 (315) 424-1111/suttoncos.com
Anderson Barney Real Estate Management Group, LLC 5015 Campuswood Drive East Syracuse, NY 13057 (315) 634-5033/andersonbarney.com CBD Management, LLC Onondaga Tower 125 E. Jefferson St. Syracuse, NY 13202 (315) 295-1900/cbdcos.com
Summit Realty Management LLC 5100 W. Taft Road, Suite 5C Liverpool, NY 13088 (315) 452-2000 /summitmanagementllc.com Oliva Companies 6724 Thompson Road Syracuse, NY 13211 (315) 463-8684/olivaco.com
leasing, brokerage, sales, development, general construction
VIP Development Associates, Inc. One Webster's Landing Syracuse, NY 13202 (315) 471-5338/vipdevelopment.net
build-to-suit, design, construction, integrated project delivery, strategic location & acquisition services, real-estate financing, property & facility management, facility audits real-estate development, property management, leasing, construction management, asset management
Central New York includes Broome, Cayuga, Chemung, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Seneca, St. Lawrence, Tioga, and Tompkins counties.
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Travis Hyde Properties 323 North Tioga St. Ithaca, NY 14850 (607) 273-1654/travishyde.com The Icon Companies 250 S. Clinton St., Suite 201 Syracuse, NY 13202 (315) 299-6292/theiconcompanies.com
The John Lynch Company, Inc. 301 Plainfield Road Syracuse, NY 13212 (315) 451-0940/jlynchco.com
Edgewater Management Company 225 Greenfield Parkway, Suite 102 Liverpool, NY 13088 (315) 471-4420 Condren Realty Management Corp. 110 Managers Place Syracuse, NY 13209 (315) 451-2005/ condrenrealtymanagement.com
News. Facts. Data. ess usin all-b Sm timism op
WHAT CONSTITUTES THE CNY REGION?
The Atrium building, State Tower James Funiciello, CEO Building, 600 Erie Place I & II, The Tony Fiorito, President & Owner Syracuse Building; White Memorial Building, Brittonfield Medical Center, Bank of America building full-service management and 550 Harrison Center, Medical Louis G. Fournier, III, President commercial brokerage company Center West, The Lofts at Franklin Linda Charles, VP Square, University Health Care Joseph Lewis, VP Center, Crouse Physicians Building, Jefferson Tower physical property management, Pioneer Business Park, Cambridge Mike Barney, Owner financial reporting, construction Business Center, Steelway Blvd., Paul V. Anderson, Member oversight, sales & leasing, Allen Office Building, Crossroads condominium & homeowner Commons, Village Green Condos association management property management, AXA Towers, Onondaga Towers Courtney Wilson, Principal commercial brokerage, Charles Sangster, Principal commercial construction, Christopher Nizamis, Property construction management, design Manager Mike Hollenberger, Building Engineer property management, North Medical Center, Northeast John D. Murphy, Jr., President brokerage, leasing, financing Medical Center, Stateway Shopping Center
Partnership Properties, Inc. 2 Clinton Square, Suite 120 Syracuse, NY 13202 (315) 475-0401/ppisyr.com
. on ati loc
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John L. Clark, President & CEO Robert Berkey, COO
Pioneer Companies 333 W. Washington St., Suite 600 Syracuse, NY 13202 (315) 471-2181/pioneercos.com
If your company would like to be considered for next year’s list, or another list, please email firstname.lastname@example.org
One Park Place Office Building, Marcy Centre; Salina Industrial Powerpark, MetroCenter
WANT TO BE ON THE LIST?
Year Local Executive Estab. Steven F. Aiello, President 2002 Louis P. Aiello, EVP Jeff Aiello, EVP Construction/ Development
Pyramid Brokerage Company 5786 Widewaters Parkway Syracuse, NY 13214 (315) 445-1030/pyramidbrokerage.com
ABOUT THE LIST
Electronic versions of all our lists, with additional fields of information and survey contacts, are available for purchase at our website, cnybj.com/ListsResearch.aspx
Notable Properties Managed Fayetteville Towne Center, Webster Towne Center, and Collamer Crossing Business Park
Services Offered property services, facilities management, construction services and management, janitorial, and parking lot maintenance full-service commercial realestate firm offering tenant/buyer & landlord/seller representation, site selection, asset management, property dispositions, market research & analysis full-service property-management company
7. 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. Organizations had to complete the survey by the deadline to be included on the list. 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.
Name Address Phone/Website COR Property Services LLC 540 Towne Drive Fayetteville, NY 13066 (315) 663-2100/corcompanies.com
Sq. Ft. Managed/ No. of Properties Managed 3,765,000 12
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Fly Road Professional Center 1 & 2, Collamer Office Building, 6700 Kirkville Professional Center, Cicero Professional Building, Macknight Bacon Professional Center, Fly Road Commons Pass & Seymour/Legrand, 1304 Buckley Road, National Grid Service Center, One Webster's Landing, Penn Traffic Warehouses, American Granby, and Chase Design Washington Station, CNY Medical Center, Midler Crossing, Upstate Bone & Joint Center, Bridgewater Place, 1101 Erie Blvd.
Anthony S. Oliva, President Stephen A. Oliva, Jr., VP
David C. Nutting, Chairman & 1985 CEO Charles C. Wallace, President William P. Morrison, Controller
Michael P. Falcone, Chairman & 1987 CEO John F. O'Brien, Managing Director Virginia G. Biesiada, Chief Administrative Officer Edward A. Marshall, Director of Property Management property management, leasing, Center Ithaca, Cayuga Professional Frost Travis, President 1977 project management, Center, The Eddygate, Gateway Chris Hyde, VP development, acquisitions, and Center investment full-service commercial realDeWitt Town Center Grazi Zazzara, President 2012 estate firm offering brokerage services, property management, tenant/buyer representation, landlord/seller representation commercial property Salina Meadows Office Park, Michael J. Dillon, President 1986 management, leasing, tenant Midtown Center, Chittenango Alan J. Rainbow, VP representation, brokerage, Plaza, Valentown Corners, Victor appraisal, receivership, construction management real-estate development and 225 Greenfield, Paychex Building, Thomas R. Kennedy, President 1988 management ATT/Veterinary Specialty Center, Gary J. Malfitano, Director Hudson Valley Mall
commercial building, multi-family 225 West 35th Street, New York Patrick F. Christopher, President 1980 housing projects, consulting, City; Clinton Plaza Apartments commercial property inspections
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May 2, 2014
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Published on May 2, 2014