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Y usIness
// 20 QUESTIONS INTERVIEW: Senator Patty Ritchie pg. 32
JANUARY 2018 Volume 8 No. 2
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WHEN IT COMES TO BANKING...LOCAL MATTERS 2 | NNY Business | January 2018
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January 2018 | NNY Business
|3
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4 | NNY Business | January 2018
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>>
Inside JANUARY 2018
14
16
42 27 |
COVER |
20 NNY RETAIL WOES? A look into the 2018 economy, key factors that affected 2017 and how businesses are working to profit in 2018. |
BUSINESS BRIEFCASE |
12 CAMPUS FOOD PANTRY $3,500 grant funds services to students. SMALL BIZ STARTUP | 13 SMITKIT Wife of Army veteran creates gallery space to encourage creativity and expression. |
|
FEATURES |
|
TOP TRANSACTIONS |
14 $10K PROJECT PLANS Key players in the revitalization of downtown Watertown have proposal for review.
31 JEFFERSON COUNTY
16 DEFYING A WET 2017 Can businesses bounce back from the wet spring that slowed business?
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27 REAL ESTATE QUARTERLY 42 AGRICULTURAL OUTLOOK Changes in the federal dairy program, immigration policy, and more.
The top 8 property sales in Jefferson County topped more than $1.5 million in December. BUSINESS SCENE |
46 NETWORKING, NNY STYLE
From Jefferson to Lewis counties, business professionals connect for success. |
ONLINE |
NNYBIZMAG.COM
Connect with us online for daily updates, more photos and exclusive Web content.
January 2018 | NNY Business
|5
BusIness
CONTRIBUTORS
www.nnybizmag.com
Chairman of the Board John B. Johnson Jr.
Marc Heller is a reporter for E&E News in Washington, DC. A native of New York State, he is a former reporter and Washington correspondent for the Watertown Daily Times. He lives in Washington, D.C.
Nicole Caldwell is a writer and editor based out of Better Farm in Redwood, NY. Reach her at nicole. caldwell@betterfarm. org.
Rande Richardson is executive director of the Northern New York Community Foundation. Every other month his column on nonprofits is featured.
Lance M. Evans is executive officer for the Jefferson-Lewis and St. Lawrence County Board of Realtors. Each month he writes Real Estate Roundup.
Editor & Publisher John B. Johnson
Co-Publisher
Harold B. Johnson II
Magazine Editor Brian Kelly
Magazine Associate Editor Holly C. Boname
Editorial Design Holly C. Boname
Photography
Kylie Peck is the president and CEO of the Greater WatertownNorth Country Chamber of Commerce. Every three months her column Commerce Corner is featured.
Megan Kendall is an associate attorney at Conboy, McKay, Bachman & Kendall LLP. She will be contributing to the Business Law column that will appear monthly.
Alyssa Couse is an agricultural outreach educator for Cornell Cooperative Extension of Jefferson County. Every other month she writes a Agribusiness column.
Craig Fox is the city government reporter for the Watertown Daily Times. He previews the $10 million dollar downtown revitalization funding. A full article will appear next month.
Amanda Morrison, Daytona Niles, Chris Lenney
Director of Advertising Michelle Bowers
Advertising Graphics
Brian Mitchell, Rick Gaskin, Heather O’Driscoll, Scott Smith, Todd Soules
Circulation Director Mary Sawyer
Holly C. Boname is associate magazine editor for NNY Magazines. This month she conducts the 20 Questions interview with Senator Patty Ritchie.
Judy Drabicki is the regional director at the Department of Environmental Conservation. Each month her column Environmental Business is featured.
Kiah Sugrue is a certified business advisor with the New York Small Business Development Center. This month she writes a column for Small Business Success.
Marcus Wolf is the business reporter for the Watertown Daily Times. In this issue he writes the real estate quarterly report and Small Business Startup.
MARKETPLACE Advanced Business Systems .........................39 Bay Brokerage ...............................................12 Bonnie Castle .................................................39 Caskinette Ford ..............................................43 Cheney Tire ....................................................31 Clayton Dental ...............................................12 Claxton Hepburn ...........................................43 Coleman’s corner ............................................4 Community Health Center ..............................3 Conboy, McKay, Bachman & Kendall ..........9 Curtis Furniture ..................................................3 Dr. Guitar ...........................................................3 Fairgrounds Inn ................................................4 Foy Agency ......................................................4 Geico ................................................................4 Goodrich Refrigeration Inc. ............................3 H.D. Goodale Co. ............................................4 HighTower The Morgia Group .......................34 Hospice of Jefferson County ........................38 Jefferson County Economic Development .30
6 | NNY Business | January 2018
Jefferson-Lewis Board of Realtors ................41 MSP Realty ......................................................36 Nortz & Virkler ...................................................7 Overhead Door Company .............................3 RBC Wealth Management .............................31 Saint Lawrence Spirits Chateau ....................48 SeaComm Federal ........................................44 Shred Con .......................................................37 Shorty’s Place ...................................................4 Slack Chemical .............................................45 T.F. Wright & Sons ..............................................8 Tunes 92.5 .......................................................29 Waite Motorsports ..........................................47 Waite Toyota ..................................................46 Watertown Local Development Corp. .........28 Watertown Savings Bank ................................2 Watertown Spring & Alignment .......................7 Ziebart ...............................................................7
NNY Business (ISSN 2159-6115), is published monthly by Northern New York Newspaper Corp., 260 Washington St., Watertown, NY 13601, a Johnson Newspaper Corp. company. © 2010-2017. All material submitted to NNY Business becomes property of Northern New York Newspaper Corp., publishers of the Watertown Daily Times, and will not be returned.
Subscription Rates 12 issues are $15 a year and 24 issues are $25 for two years. Call 315-782-1000 to subscribe. Submissions Send all editorial correspondence to hboname@wdt.net Advertising For advertising rates and information in Jefferson and Lewis counties, email mbowers@wdt.net, or call 315-661-2345 In St. Lawrence County, e-mail blabrake@ogd.com, or call 315-661-2507 Printed with pride in U.S.A. at Vanguard Printing LLC, Ithaca, N.Y., a Forest Stewardship Certified facility. Please recycle this magazine.
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INTERVIEW
|
|
ABOUT THE COVER
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32 SENATOR PATTY RITCHIE Senator Patty Ritchie sat down with NNY Business to talk about the economy, policy and her outlook for 2018.
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COLUMNS
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28 NONPROFITS TODAY 29 AGRIBUSINESS 30 REAL ESTATE ROUNDUP 36 COMMERCE CORNER |
DEPARTMENTS
8 9 10 12
37 SMALL BUSINESS SUCCESS 40 ENVIRONMENTAL BUSINESS 41 BUSINESS LAW
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EDITOR’S NOTE PEOPLE ON THE MOVE ECONOMIC SNAPSHOT BUSINESS BRIEFCASE
13 SMALL BIZ STARTUP 44 CALENDAR 46 BUSINESS SCENE
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January 2018 | NNY Business
|7
E DI T OR ’ S NOTE
D
epending on who you talk to, retail is either dying, growing or merely changing. Amidst the gloomy news of struggling or closing chain stores, there are reports that some sectors of retail actually experienced strong sales in 2017, buoyed by online purchases, but with some also showing improved sales at their bricks-and-mortar locations. Whatever is going on in retail bears watching in the north country, especially in Jefferson Country, where retail is the second-largest employer. In the annual economic outlook issue of NNY Business, freelance writer Marc Heller takes a look at what the year ahead may hold for retail and the local economy. There was a time in the Watertown area when everyone felt like they had to travel to Syracuse to find unique retail offerings. The perception was that the latest back-toschool or workwear fashions could only be found at one of Syracuse’s malls. That changed in 1986 when Watertown got a mall of its own. There was also an upswing in retail moving into the area in the mid-2000s after it was learned
Fort Drum had survived a round of military base closings. Today, it’s hard to find a chain store in Syracuse – or really anywhere on the East Coast – that doesn’t also exist Brian Kelly in Watertown. In Massena, as Marc’s story shows, it is a different story. The St. Lawrence Centre Mall has experienced its peaks and valleys since its construction in 1990, but the valleys have become more frequent than the peaks. Today, the mall is about half full, with many national chains having pulled out, leaving local businesses to fill the gap. As mall manager Erica Leonard tells Marc, the mall is reinventing itself to cater to these smaller businesses and has seen some early success, particularly with North Country Showcase, which sells locally made crafts and food and now features 100 vendors. Both malls took their bites out of downtown businesses and Watertown now has a possible tool to help bring some of that
retail back to Public Square. In December, it was announced that the city was the recipient of a $10 million Downtown Revitalization Initiative grant from the state. Writer Craig Fox provides an overview of some ideas under consideration by a committee formed to determine how the grant should be used and we plan to have a more in-depth look at the grant’s implications in February. This month’s issue also looks back on the impact of high Lake Ontario and St. Lawrence River levels on the 2017 tourism season and the hopes for the upcoming season. Freelance writer Nicole Caldwell spoke with some business owners about their experiences last summer dealing with unusually high water levels and their optimism heading into 2018. We also sat down with state Sen. Patty Ritchie (R-Heuvelton), who discusses some of the challenges facing the north country economy and her plans to help improve it in the coming year. Enjoy,
NE XT M ONTH
I
n February’s issue of NNY Business, the focus of the magazine is on the Northern New York downtown revitalization throughout the tri-county region.
Also coming next month: n 20 QUESTIONS: NNY Business sits down with a business leader in the community.
Kitchens, Bathrooms, Tabletops, Desktops, Workbenches and Coffee Tables. Choose from our Granite & Marble Selections. We also offer a Selection of Stone Veneer.
n PLUS: NNY Snapshot, Economically Speaking, Business Law, Commerce Corner, Nonprofits Today, Small Business Success, Real Estate, Agribusiness, and Business Scene. n VISIT US ONLINE at nnybizmag.com. Follow us on Twitter for daily updates at @NNYBusinessMag, like us on Facebook at facebook.com/nnybusiness.
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8 | NNY Business | January 2018
NNY PEOPLE St. Lawrence Health System’s CPH Pediatrician, Heather Jones, MD, Receives Board Certification
St. Lawrence Health System’s Heather Jones, MD, pediatrician, received her board certification from the American Board of Pediatrics, effective Oct. 18. Board certification from the American Board of Pediatrics follows a rigorous and comprehensive examination of a pediatrician’s advanced application of specialized training within the field of pediatrics. A total of 25 areas of specialized training, including neo-natal and adolescent care, mental and behavioral health, preventative care, emergency and critical care, and oncology are evaluated for ABP certification. Dr. Jones received her medical degree from Warren Alpert Medical School, Brown University, Providence, R.I., and completed a pediatric residency at PL1, PL3 Children’s Hospital at DartmouthHitchcock, DHMC, Lebanon, New Hampshire. Dr. Jones provides comprehensive inpatient and outpatient diagnosis and treatment of disorders and diseases affecting children up to age 18. She also provides wellness examinations, school sports exams, and vaccinations. She joined St. Lawrence Health System in 2017, and practices at 190 Outer Main St., Potsdam.
organizations, researchers, mental health professionals, child welfare advisers, and policymakers. Their goal is to ensure vulnerable youth receive communitybased supports and services to help them achieve long-term safety, stability, and wellbeing in permanent homes with life-long connections. Ms. Monnat began her career at the Children’s Home in May 2008. She currently oversees all CHJC residential programs including residential treatment, therapeutic crisis respite, and non secure detention. She also oversees
CHJC’s information technology and quality improvement/quality assurance departments, and serves as an agency
Got business milestones? n Share your business milestones with NNY Business. Email news releases and photos (.jpg/300 dpi) to associate magazine editor Holly Boname at hboname@wdt.net. The deadline for submissions is the 10th of the month for the following month’s issue. Photos that don’t appear in print may be posted on our Facebook page.
CHJC Director of Systems Administration Named to National Family Focused Treatment Association Board
Children’s Home of Jefferson County director of systems administration, Michelle L. Monnat, MS, LMHC, has been elected to serve on the Family Focused Treatment Association (FFTA) Board of Directors. A national organization, FFTA was established in 1988 and represents more than 450 member agencies throughout the United States and Canada. Each year, its member agencies serve more than 60,000 youth. The association’s mission is “to strengthen agencies that support families caring for vulnerable children,” while its vision is “to be the leader in promoting best practices in family focused treatment services.” The organization has grown to become the only national, non-profit association representing treatment foster care programs across North America. FFTA also offers a large array of child welfare and behavioral health services. Members work within a network of national and state child welfare advocacy
January 2018 | NNY Business
|9
Average New York surrogate* price for on-highway diesel
$1.87 in November 2017 $1.87 in October 2017 $1.83 in November 2016
$3.03 in November 2017 $2.93 in October 2017 $2.56 in November 2016
2.2%
Source: NYS Department of Agriculture
Vehicles crossing the Thousand Islands bridge
13%
140,667 in November 2017 168,436 in October 2017 142,377 in November 2016
Vehicles crossing the Ogdensburg-Prescott bridge 57,789 in November 2017 61,539 in October 2017 50,258 in November 2016
Average NNY price for gallon of residential propane
22.4%
Vehicles crossing the Seaway International (Massena) bridge
Source: NYS Energy Research and Development Authority
196,536 in November 2017 209,605 in October 2017 186,162 in November 2016
Jefferson-Lewis Board of Realtors single-family home sales 131, median price $128,000 in November 2017 129, median price $140,000 in October 2017 124, median price $125,600 in November 2016
Seaway International Bridge Corp.
U.S.-Canadian dollar exchange rate (Canadian dollars per U.S. dollar)
2%
$1.29 in November 2017 $1.29 in October 2017 $1.34 in November 2016
Price
St. Lawrence Board of Realtors single-family home sales 63, median price $70,000 in November 2017 66, median price $87,250 in October 2017 72, median price $99,805 in November 2016
Nonagriculture jobs in the Jefferson-Lewis-St. Lawrence counties area, not including military positions 88,800 in November 2017 88,900 in October 2017 88,100 in November 2016
29.9%
.8%
Price
Source: Jefferson-Lewis / St. Lawrence boards of Realtors Inc.
Source: NYS Department of Labor
NNY unemployment rates
New York State
United States
6.1
5.2
6.0 November 2016
October 2017
5.7 October 2017
5.9
6.4 November 2017
Lewis County
November 2017
6.3
St. Lawrence County
November 2016
October 2017
5.4
6.8
Jefferson County
November 2016 4.6
Sales
Source: Federal Reserve Bank of N.Y.
October 2017 4.1
12.5%
3.7%
November 2017 4.1
Sales
5.6%
November 2016 4.5
5.6%
15%
Ogdensburg Bridge & Port Authority
4.6
$3.39 in November 2017 $3.27 in October 2017 $2.77 in November 2016
1.2%
Source: T.I. Bridge Authority
14.8%
October 2017
$2.71 in November 2017 $2.54 in October 2017 $2.36 in November 2016
November 2017
ECON SNAPSHOT
Average NNY price for gallon of home heating oil
November 2017 4.5
$2.60 in November 2017 $2.59 in October 2017 $2.30 in November 2016
18.4%
*Prices are the composite area that includes New York, Delaware, Maryland, New Jersey, Pennsylvania and the District of Columbia. Source: U.S. DOE, Energy Information Administration
Average NNY price for gallon of regular unleaded gas
10 | NNY Business | January 2018
(Percent gains and losses are over 12 months)
Average per-gallon milk price paid to N.Y. dairy farmers
November 2016
NNY
Economic indicators
Source: U.S. Department of Labor and New York State Department of Labor (Not seasonally adjusted. Latest available data reported.) Note: Due to updates in some “Econ. Snapshot� categories, numbers may differ from previously published prior month and year figures.
NNY
Economic indicators New automobiles (cars and trucks) registered in Jefferson County Cars 419 in November 2017 456 in October 2017 318 in November 2016
31.8%
Trucks 108 in November 2017 115 in October 2017 111 in November 2016
2.7%
Source: Jefferson County Clerk’s Office
Passengers at Watertown International Airport
Open welfare cases in Jefferson, Lewis and St. Lawrence counties
4,743 in November 2017 4,662 in October 2017 2,983 in November 2016
2,119 in November 2017 2,126 in October 2017 2,244 in November 2016
59%
5.6%
Source: Watertown International Airport Source: Social Service Depts. of Jefferson, Lewis and St. Lawrence counties
DBA (doing business under an assumed name) certificates filed at the Jefferson County Clerk’s office December 1 to December 31, 2017. For a complete list of DBAs filed in past months, visit WWW.NNYBIZMAG.
DEC. 29: New York Rider Magazine, 29190 Route 3, Black River, Grover Ireland, 29190 Route 3, Black River.
DEC. 18: Kaace GCS, 21246 Oxford St., Carthage, Christopher R. Marlowe, Jr., 21246 Oxford St., Carthage.
DEC. 28: Sunnis Salon, 26298 Route 11, Evans Mills, Hyeson Montgomery, 1023 Academy St., Watertown.
DEC. 15: Different Flavors, 249 State St., Watertown, Lawrence F. Jocelyn, 815 Coleridge Road, Uniondale.
Ontario Property Services, 15978 Route 76, Adams Center, Jesse P. Vance, 15978 Route 76, Adams Center.
DEC. 13: Delpapa family Farm, 16666 Comstock Road, Adams, Julie Delpapa, 16666 Comstock Road, Adams.
HB Enterprises, 799 State Highway 37, Hammond, Thomas M. Norstrom, 799 State Highway 37, Hammond.
DEC. 12: S W Leonard Contracting, 11896 County Route 125, Chaumont, Steven W. Leonard, 11896 County Route 125, Chaumont.
Cooperative Real Estate North Country, 1511 Washington St., Watertown, Core North Country Inc., 25683 Beckwith Road, Evans Mills.
DEC. 8: I Can Cheer, 8565 B Jackson Loop, Fort Drum, Keisa Grisales, , 8565 B Jackson Loop, Fort Drum.
L and L Surplus and Antiques, 130 Haley St., Watertown, Leon F. Latour, 130 Haley St., Watertown.
DEC. 7: Watertown Graphics, 935 Sherman St., Watertown, Christopher J. Ryan, 935 Sherman St., Watertown.
DEC. 27: Rome Motorsports, 38183 State Route 180, LaFargeville, Brian Reome, 38183 State Route 180, LaFargeville, Bruce Reome, 18460 Robinson Road, Clayton.
DEC. 5: Brookes Property Services Residential and Commercial Contracting, 883 LeRay St., Watertown, Brian C. Morenz, 883 LeRay St., Watertown.
Penrose Consulting, 1127 Academy St., Watertown, Betsy D. Penrose, 1127 Academy St., Watertown.
DEC. 4: Scott Distributing, 26370 LeRay Pk Ln, Calcium, Cordell A. Scott, 26370 LeRay Pk Ln, Calcium.
DEC. 26: JW Reclaiming, 362 Centre St., Cape Vincent, Jason A. White, 362 Centre St., Cape Vincent. DEC. 19: R Martins Mechanicals, 925 West Main St., Watertown, Sarah B. Martin, 220 South Broad St., Sackets Harbor.
January
TRANSACTIONS
DBAs
2018 | NNY Business
| 11
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BUSINESS BRIEFCASE JCC Receives $3,500 Grant to Support Campus Food Pantry
The campus food pantry at Jefferson Community College (JCC) was awarded a $3,500 grant from the Jane E. Deline Foundation to fund ongoing services to students attending the college. The food pantry is just one component of the Jefferson Community School (JCS) program located in the private setting of the Health & Wellness Center at JCC. The food pantry, designed to provide an on campus resource for JCC students of low socioeconomic status, provides typical food and non-food items including personal hygiene and household products. The pantry serves low-income, first generation students (meaning neither parent has earned a bachelor’s degree), veterans, military dependents, and parenting students in need. Since 2016, the food pantry has supported a growing number of students on an annual basis. Last year, JCC students accessed the food pantry 87 times. At this point in time, the frequency of use is well over 100 occurrences for the current year. Director of the program, Dr. Katy Troester-Trate, Ed.D, LCSW explains, “Since I started working at JCC, I have watched thousands of students struggle with financial burdens and obstacles that college students should not have to face. The issue of food insecurity specifically impacts a significant portion of our student body, both at JCC and as an unfortunate national trend.” According to StudentsAgainstHunger.org, 25% of community college students nationwide report some level of food insecurity. “This generous grant from the Jane E. Deline Foundation will help to keep our shelves stocked throughout the school year,” said Troester-Trate. “This essential service will ultimately be the difference for some of our students between staying at Jefferson to pursue an education or dropping out.” JCS, a grant funded program of the State University of New York (SUNY) and an initiative of Governor Cuomo, seeks to coordinate and maximize public, non-profit and private resources to deliver critical services to students and thereby increase student achievement. JCS also provides temporary transportation and childcare assistance as well as physical and mental health services and continues to partner with community providers. “JCC is special because it recognizes the comprehensive support that a majority of our students need to succeed in college,” says Troester-Trate. “We provide access and support for students who may not otherwise have a chance to better their lives through education…and it’s working!”
SMAL L BU SIN E SS S TA RT UP BUSINESS
SmitKit Studio
Art enthusiast Lindsey T. Paranzino's desire to showcase local creators and their craft motivated her to open a new art gallery on State Street. SmitKit Studio features paintings, ceramics and mixed-media art from five artists, four from Jefferson County and one from Minnesota, for sale at prices varying from $12 to about $1,000, although Mrs. Paranzino said most items cost less than $200. "We want to make beautiful things available to people to appreciate them," she said. "You can come in. You de-stress. You're around art and you feel better." The local entrepreneur opened SmitKit Studio in October at her old house, also the former Watertown office of Catholic Charities of the Diocese of Ogdensburg, at 812 State St. The house was too large for Mrs. Paranzino and her two sons, Logan and Maxton, but rather than rent it out, she said, she decided to use the space to open a business she was passionate about. Mrs. Paranzino moved into the former Catholic Charities office after her husband, Sgt. Michael F. Paranzino, a cavalry scout at Fort Drum, died from an improvised explosive device in 2010 in Afghanistan. While she was studying business administration and music business at SUNY Potsdam, Mrs. Paranzino found her passion for the visual arts after meeting Watertown artist Stow Dunham, whose paintings are featured in her gallery. She said Mr. Dunham and other featured artists worked together to prepare the gallery for its opening. "My biggest frustration is knowing these amazing artists and not knowing how to get people in the art gallery to see them," she said. The gallery, on the first floor, features a main showroom with paintings and pottery, a photography room that features photos from Mrs. Paranzino and another artist and an artists studio and lounge called "the cave." Customers who can't afford to pay the entire cost of a piece of artwork can sign up for a payment plan with the gallery, Mrs. Paranzino said. In addition to selling local artwork,
Photography by: Amanda Morrison
Mrs. Paranzino and her fellow artists offer mural work, on-site photography and live demonstrations. The gallery "is a place where you can be yourself," she said. "When I go to the gallery, I feel like I'm home." Mrs. Paranzino said she hopes to renovate more of the first floor to expand the
main showroom and recruit more artists. "We're really hoping to get in touch with more local artists that do woodwork and metalwork," she said. The gallery is open from 10 a.m. to 4 p.m. Thursday through Sunday and by appointment Monday through Wednesday. ~Marcus Wolf
WHERE Watertown, NY | OPENED October 2017 | WEB facebook.com/pg/smitkitstudio
January 2018 | NNY Business
| 13
LOOKING DOWNTOWN: REVITALIZING WATERTOWN’S PUBLIC SQUARE BY CRAIG FOX n NNY BUSINESS
AMANDA MORRISON n NNY MAGAZINES Michael A. Lumbis, the city's planning and community development director, poses in Public Square, Watertown.
14 | NNY Business | January 2018
T
the city’s Local Planning Committee are working with a team of state-selected consultants - Elan Planning, River Street Planning and M.J. Engineering - to plan how to redevelop downtown under the DRI program. The planning committee - a group of 20 business and community leaders putting together Watertown’s DRI program – are starting to work on prioritizing projects. “They are trying to determine which ideas are ideas and which are realistic projects,” said Michael A. Lumbis, the city’s planning and community development director. Divided into three subcommittees, the group will find out more information about the projects from those who have proposed them. The potential projects include new development and rehabilitation, public improvements and marketing and branding. The list of potential project ideas that were submitted to the planning committee include: a downtown public parking garage; continued renovations to the former
Masonic Temple; several cafes; a banquet hall on the top of the Lincoln Building and restoration on the other floors; improvements to the Jefferson County Historical Society mansion; and roof and window replacement at Knowlton Technologies. A final list of projects must be completed in March and sent to the state for approval. By next fall, some of the projects could be ready to roll. The projects must have leverage with other private and/or public funding and be a catalyst for other development. Organizers want the plan to capitalize on the city’s unique riverfront setting, promote renovation and adaptive reuse of historic properties, improve walkability of the downtown corridor and increase downtown opportunities for commerce. As part of its DRI application, the city proposed converting the former Masonic Temple’s “great meeting room” on the second floor into a performing arts center. Watertown was awarded the $10 million DRI grant in October. Ten other cities in the state also received $10 million.
COURTESY OF watertowndri.com
he city of Watertown’s $10 million downtown grant is already spurring interest in downtown, according to local developer Brian H. Murray. Usually a slow time of the year, a dozen potential tenants showed interest during December in downtown rental space he owns. Out of the 12 who inquired about space, he hopes three new tenants will sign leases by the end of January, Mr. Murray said. He credits the city’s $10 million Downtown Revitalization Initiative program. “It’s all of the talk about the DRI,” he said. “We’ve seen a spike in interest. There’s a lot of excitement for Public Square.” Mr. Murray would not reveal any information about the potential tenants or what properties they’ve inquired about. Mr. Murray co-owns the Lincoln Building on Public Square and owns several other prominent downtown commercial buildings. The city’s Planning Department and
N N Y BU SIN E SS F E AT UR E
January 2018 | NNY Business
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N N Y BUSINES S FEATURE
DEFYING
A WET 2017: Businesses Look Bravely Toward 2018 BY NICOLE CALDWELL n NNY BUSINESS
High water levels last summer put a damper on many area businesses, creating a devastating storm of drowning profits and skyrocketing repair costs. But when the going gets tough, the tough get resourceful. The adaptiveness of north country businesses meant many bounced back to make up for early season losses. Those adaptations—repairs, improvements and strategizing—have poised inns, marinas, restaurants and shops for whatever Mother Nature brings in 2018. WATERTOWN DAILY TIMES FILE PHOTO Boldt Castle in Alexandria Bay opened in spring of 2017 despite high waters covering multiple docks, as seen from the air.
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N N Y BU SIN E SS F E AT UR E
January 2018 | NNY Business
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N N Y BUSINES S RECORD WATER LEVELS KEPT TOURISM AT BAY THROUGH MID-SUMMER.
KATHY TABER-MONTGOMERY n NNY BUSINESS John J. Killius of Henchen Marina walks on his dock, which is usually at least one to two foot above the water level, to fuel a barge on May 10.
Eighty percent of businesses in the Thousand Islands region were negatively affected by the season’s unusually high water and rain levels, according to a survey by the 1000 Islands Tourism Council. Revenue losses averaged 29 percent in the 2017 summer season—a shock, considering the stabilized gas prices and exchange rates between Canada and the United States, and an increase in disposable consumer income. Water levels, which swelled throughout the early spring, peaked in May. Lake Ontario set records since levels were first tracked 100 years ago, at 248.8 feet according to the International Joint Commission—almost two feet over flood levels—while the St. Lawrence River reached 242 feet above the dam in Massena. At Henchen Marina in Henderson, revenue dipped by 30 percent and the business was hit with $75,000 in damages to buildings and docks. Restaurants such as The Blue Heron in Chaumont and Sackets Harbor Brewing Company suffered a steep decline in diners, as cottage owners and seasonal guests were deterred from visiting by flooded houses and unusable docks. These stories, along with many others reported by the Watertown Daily Times in November, have echoes all along the St. Lawrence River and Lake Ontario. The state responded by making $5 million available to businesses affected in grants of up to $20,000 for repairs. SOCIAL NETWORKS, NEWS EXACERBATED THE ISSUE.
COURTESY OF Boldt Castle DAYTONA NILES n NNY BUSINESS Mike Stock is the owner of Riverbay Adventure Inn,
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Seventy-five percent of business owners in the 1000 Islands Tourism Council survey said social media and news reports contributed to diminished business. Michael C. Stock, owner of Riverbay Adventure Inn in Chippewa Bay, called the season “kind of a weird situation for a lot of reasons,” and said social media and the news affected his business “a great deal” by misleading visitors. “What I’m finding is people can know the conditions even before I do and I’m here. There was a lot of concern. People started showing pictures of a dock on a dock and people saw that and started emailing us asking about safety… just the amount of time and energy that went into answering questions. I can’t say this for certain, but it didn’t feel like a lot of local media or chambers stood up. I acknowledge there was a [flooding] problem, but we also have to protect each other.” At the end of the day, Stock chalks last season up to a learning experience in preparedness. “We had a lot of damage to our docks,” he said. “I made a big investment into putting in floating docks. I learned that way you’re not dependent on what the water does. I’m trying to be proactive— anything I redo or fix, I think, ‘How can I do it so I am truly prepared for anything?’” One of those ways is to diversify. Stock—along with many entrepreneurs along the river—noticed that if people didn’t spend money in one place, they spent it in another. Case in point: Tourists who did show up last season often came without their own boats, driving rentals up. That helped make up for reduced kayak rentals, he said.
N N Y BU SIN E SS F E AT UR E
SOME BUSINESSES TREATED UNPREDICTABLE WEATHER AS BUSINESS AS USUAL.
Not every business in the tri-county region has decades of books to look back on to chart what accounts for a good or bad year. The Golden Cleat, a jewelry line founded by Emilie Cardineaux in 2014, opened its first brick-and-mortar shop in a riverfront building in downtown Clayton during some of the worst flooding recorded in the last half-century. “I have nothing to compare this to,” Cardineaux said of how the high water and wet season may have affected business. Unlike other shops, flooding didn’t affect her inventory. But back at Cardineaux’s home, a flooded basement threatened to ruin her musical equipment. But instead of simply finding another place to store her gear, the entrepreneur came up with a new plan. “We took all the music equipment out and brought it into the store, which turned into a concert series,” Cardineaux said. “That was really cool and fun and special and was sort of serendipitous, I guess.” Ticket sales from the concert series at The Golden Cleat were donated to the Antique Boat Museum, while also bringing in more foot traffic to Cardineaux’s store. “Overall, the store did better than I ever expected in a retail location and [opening a storefont] was probably the best business decision I ever made,” she said. “June was less than September in terms of retail, but our July was double our June and our August was even far exceeding that. It’s really hard to say how it would have been different with weather. Overall, people just didn’t make the trips up in June that they otherwise would have. But I think people who were here were eating out and shopping more because they weren’t out on their docks.”
DAYTONA NILES n NNY BUSINESS Emilie Cardineaux owner of the Golden Cleat specializes in unique jewelry and products themed to the Thousand Islands in Clayton. January 2018 | NNY Business
Please see HIGH WATER, page 39
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COV E R STORY
RETAIL WOES? A LOOK INTO THE 2018
TRI-COUNTY ECONOMY 20 | NNY Business | January 2018
C O V E R S T O RY
AMANDA MORRISON n NNY BUSINESS
The Gander Mountain in Watertown was slated to remain open after another company acquired it, but remains closed. | NNY | 21 January 2018 Business
COV E R STORY
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reg Gardner, professor of business administration at SUNY Potsdam, was going over reports on the retail industry when two statistics jumped out at him: Jefferson, Lewis and St. Lawrence counties lost about 8 percent of their retail businesses between 2005 and 2015 – but retail employment grew by almost double that rate. To Gardner, those numbers mean the region lost small, mom-and-pop stores, and big-box retailers made gains – not a shocking trend, given the growth of Fort Drum and big retail chains’ ability to invest in technology on a large scale. But the statistics foreshadow a growing challenge as big retailers, now, suffer as well: the north country is more reliant on them than ever and will have to find a way to ride out big changes in the way customers shop. “Local mom-and-pop stores will only face harder times as they are unable to make serious investments in technology,” Gardner said, adding that customers can be drawn by “superb and interesting service” that they can’t find online. “The ones that will survive are those that can turn shopping into an experience.” Northern New York has seen a spate of closures among national chains, from the Bon-Ton Stores Inc. location in Massena to J.B. Robinson Jewelers and Gander Mountain at the Salmon Run Mall in Watertown, as well as Kmart across Route 3 from the mall. Other big stores, such as Sears, have held on but their future remains cloudy on a national level. “We could lose some very heavy hitters here,” said Cheryl A. Mayforth, director of the Jefferson County Department of Employment & Training at the WorkPlace. Shopping woes translate into broader economic trouble because retail and service is the number-two industry for employment in Jefferson County, behind Fort Drum and other government-related jobs, Mayforth said. Sluggish hiring in retail, which normally swells in preparation for Christmas, helped increase the county’s unemployment rate to 6.8 percent in November, second-highest in New York, she said – and that came on top of the typical loss of seasonal jobs the region sees in late fall. The trouble isn’t limited to Northern New York. Fung Global Retail & Technol-
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AMANDA MORRISON n NNY BUSINESS Cheryl Mayforth, executive director for The WorkPlace, says that about 15.5% of the jobs in Jefferson County are in retail.
ogy, an industry analysis and research firm, reported that 6,985 store closures were announced nationwide in 2017, an increase of 229 percent from 2016. The biggest losses include 1,470 Radio Shack locations, 700 Payless Shoes locations and 358 Sears and Kmart stores. Payless, in bankruptcy, said it would close its location at the St. Lawrence Centre Mall in Massena, and its store at the Salmon Run Mall in Watertown was included on a list of stores that could be closed as part of the negotiations. Business boosters say smaller stores and
downtowns may be able to cash in on big retailers’ troubles by luring customers to shops that offer goods or services the big chains don’t provide. But Gardner said he remains cautious, convinced that small, independent stores will continue to have trouble keeping up with the industry’s increased reliance on online sales, even as big-box retailers shrink in number. “I am not a retail expert and I hate to be gloomy, but this situation does not look promising for most of our local retailers, including many big chains,” Gardner said. “I don’t think anyone really knows
C O V E R S T O RY
what will happen over the next few years, but every major retail chain seems to be going through all kinds of strategic gyrations trying to find that happy spot in the market.” At the St. Lawrence Centre Mall in Massena, general manager Erica Leonard isn’t giving up on retail – but she doesn’t put much hope in bigger department stores, following the announcement that Bon-Ton Stores Inc. will close there at the end of January. The Bon-Ton departure follows the closure of other anchor stores at the 543,000-square-foot mall, including Sears
CHRISTOPHER LENNEY n NNY BUSINESS Erica Leonard, general manager, at the St. Lawrence Centre Mall, has some exciting ideas for 2018.
January 2018 | NNY Business
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in 2015. One original anchor in the mall, J.C. Penney, remains – but Penney closed 138 stores nationwide in 2017, according to Fung Global Retail & Technology, and reported $242 million in losses in the first half of 2017. “Big-box retail is going out of style, unfortunately,” said Leonard, who figures retailing in the north country will rise or fall on locally owned businesses. “It’s not going to be run on corporate America. It’s the small, locally owned business that’s going to keep us going.” Leonard pins her hopes on businesses such as North Country Showcase, which sells locally made crafts and food. The store has grown to 100 vendors, from 33 when it opened last year. “They’re a huge success,” she said. Leonard said other promising types of mall shopping include experiences such as laser tag or paintball, and offerings of a wider variety of food. Movie theaters, long a feature of malls, promise hope too, she said, although movies also face their challenges; the industry reported the fewest movie-goers in a generation in 2017, as Netflix and similar services cut into the business. One of the early hopes in Massena, of drawing customers from Canada to the mall to support the big stores, now seems farfetched, Gardner said. “It would take a serious decline in the U.S. dollar to make that effective, and even then, most retailers won’t be able to justify opening a new store where profits depend on currency fluctuations.” 24 | NNY Business | January 2018
CHRISTOPHER LENNEY n NNY BUSINESS The goal of North Country Showcase is to market to tourists, as well as north country residents, the high-quality products produced in the region.
CHRISTOPHER LENNEY n NNY BUSINESS Mall walkers pass by an empty display area, which could be a blank canvas for a business to build upon.
C O V E R S T O RY Downtowns across the north country have been losing business to big stores in the malls for years, but big-box retailers’ woes might offer downtown stores a glimmer of hope, said Kylie Peck, president and chief executive officer of the Greater Watertown North Country Chamber of Commerce. Affordable, locally owned clothing stores, for instance, could have potential, as can restaurants, she said. The city is using a $10 million revitalization grant to explore ways to attract customers downtown, and Peck said officials want to see more locally owned retailers. “We really like to see local dollars made and spent here locally,” Peck said. The global consulting firm PwC said in an annual retail report that although online shopping – especially through Amazon.com – continues to cut into brick-and-mortar retailing, consumers still like to touch, feel and try on items before buying them. That gives traditional stores a potential edge if they can make the shopping experience more interesting or attuned with consumer taste, the firm said. An “inviting, appealing in-store environment” and suitable store location make store visits more attractive, and retailers can consider special events such as musical performances or book readings to draw customers, the firm said. In addition, stores that also offer goods online should offer Web-based orders for items that aren’t in the store, PwC said. Businesses trying to compete with big online sellers such as Amazon should focus also on customer service, PwC said. And smaller chains with a handful of locations should offer private labels and other goods that can’t be found in other places, protecting against being undersold, the firm said. Customer service is addressed through hiring and training. Although the north country’s unemployment rate is high compared to the rest of New York, seasonal numbers tend to skew the results, and the region actually has a labor shortage, Mayforth said. Nationally, the picture for retailing isn’t dark — it’s just changing, said Ana Smith, a spokeswoman for the National Retail Federation. Retailers who’ve been hurting could see help from more friendly national policies and were heartened by a tax code overhaul that will lower tax rates while preserving some deductions, she said. Another group, National Federation of Independent Business, said the tax law will spur small businesses to invest more in their operations, hire more workers and pay them more.
AMANDA MORRISON n NNY BUSINESS Kylie Peck, CEO of the Greater Watertown-North Country Chamber of Commerce. January 2018 | NNY Business
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COV E R STORY Technology is key, too, business groups say; PwC’s report made 10 recommendations for retailers in the next year, eight of which were focused on technology. Whether lower taxes have any effect on broader trends in retail remains to be seen. The “Amazon effect” is well known across retailing for taking business away from brick-and-mortar stores. More than a third of respondents to a global survey by PwC said they check prices for items on Amazon, even if they don’t buy them on the site. But some big-box retailers such as The Home Depot and Target have taken a lesson from Amazon, shipping items directly from their stores to take advantage of lower transportation costs, the NRF said. The Home Depot has stores in Watertown and Massena, and Target has one store in the north country, in Watertown. Good roads, well-designed infrastructure and other solid businesses nearby are as important as ever in attracting and keeping stores. In Watertown, developer Patrick M. Donegan pushed the city for several years to build a connector road through the Stateway Plaza, saying he could attract a big-box retailer to an adjacent 18-acre site if the road were built — an arrangement that will be put to the test if the road is completed later this year as the city predicts. He’s had success in bringing Hilton Garden Inn, Holiday Inn Express, Ruby Tuesday and other businesses to the area off Arsenal Street, near Interstate 81, but the additional effort has been slow, and he said there isn’t much exciting going on for the moment in Watertown retail. Some retail analysts see a more positive picture for brick-and-mortar stores. Another retail analysis firm, IHL Group, said in August that retailers were opening about 4,000 more locations in 2017 than they were closing, and that for every chain with a net closing of stores, 2.7 companies showed a net increase in store locations for 2017. “The negative narrative that has been out there about the death of retail is patently false,” said Greg Buzek, president of IHL Group, in a news release. “The socalled ‘retail apocalypse’ makes for a great headline, but it’s simply not true.” Specialty clothing retailers are seeing the most closings, with a net loss, IHL said. But off-price retailers and dollar stores, convenience stores and grocery stores are expanding, the firm’s research 26 | NNY Business | January 2018
AMANDA MORRISON n NNY BUSINESS
showed. In total, chains are opening a net 14,239 stores and closing 10,123 stores, IHL Group said. In Northern New York, dollar stores appear to remain solid — for now — Gardner said. “I think they are just running on some economic inertia, as even very lowincome shoppers are turning increasingly to online shopping,” Gardner said. “And the online retailers will quickly figure out
how to reach those markets even more efficiently.” At the St. Lawrence Centre, Leonard sees a half-empty mall and isn’t counting on any Bon-Ton type stores to come back soon. “Now we have to reinvent ourselves to be successful without big box retail,” Leonard said.
N N Y RE AL E STAT E Q U A RT E R LY
THIRD QUARTER SALES: Tri-county home sales drop to lowest price point
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ealtors sold more homes in Jefferson and St. Lawrence counties during the third quarter last year than any third quarter in the past four years, with prospective homebuyers securing stable employment cited as the reason. Third quarter median home prices for both counties, however, fell to their lowest during that time as homes, particularly foreclosures, were sold at lower prices. “We’ve seen economic recovery in Jefferson, Lewis and St. Lawrence counties,” said Lance M. Evans, executive officer of both the Jefferson-Lewis Board of Realtors and St. Lawrence Board of Realtors. “From the big downturn, unfortunately, we also had some foreclosures.” The number of houses sold in Jefferson County during the third quarter increased from the same time in 2016 by 34 units, or 10.3 percent, from 330 units to 364, according to the Jefferson-Lewis Board of Realtors. At the same time, the third quarter median home price in Jefferson County fell from the same quarter 2016 by $16,750, or about 11 percent, from $152,000 to $135,250. Vickie L. Staie, president of the Jefferson-Lewis Board of Realtors, said the U.S. Department of Defense has been stationing more soldiers and federal employees at Fort Drum and providing more long-term work to some current Fort Drum workers, which has led to more home purchases. Investors have also driven up homes sales during the third quarter by continuing to purchase foreclosed homes on the cheap and refurbishing them to later sell at a higher value, which has also lowered the median price. “I think it’ll have a great effect. We’re eliminating many zombie homes in our area,” Mrs. Staie said. Zombie properties are homes that owners abandoned after they stopped paying the mortgage and before banks began the foreclosure process. Homes sales during the third quarter in St. Lawrence County were up from the same time in 2016 by 23 units, or 11.3 per-
cent, from 204 units to 227, according to St. Lawrence Board of Realtors. The third quarter median home price in the county fell from the same quarter in 2016 by $7,250, or 7.2 percent, from $101,250 to $94000. Richard J. Wood, president of the St. Lawrence Board of Realtors, said the Canton-Potsdam Hospital expansion continued to bring more homebuyers to the county. Several people also moved from a different home within the county to expand or downsize, which also drove up homes sales. “I think it has a lot to do with the length of time on the market,” Mr. Wood. “People want to wrap stuff up before it gets to the cold weather.” Prospective buyers also bought several foreclosed properties in the county, which Mr. Wood, who owns RJ Wood Real Estate LLC in Gouverneur, said brought down the median price. “I’ve seen homes go right now that have sold for $10,000,” he said. Unlike Jefferson and St. Lawrence counties, home sales in Lewis County remained relatively flat in the third quarter compared to the same time in 2016. The number of houses sold in Lewis County decreased slightly from the same time in 2016 by two units, or about 3.3 percent, from 61 to 59. The median home price for the third quarter in Lewis County, however, decreased from the same quarter in 2016 by $20,000, or 17.4 percent, from $115,000 to $95,000. Mrs. Staie, who also owns Staie on the Seaway Real Estate Services LLC and Appraisals USA in Alexandria Bay, said several sellers’ asking prices were too much when compared to their market value, which keeps them on the market for a while. Many homes that sold during the third quarter were winter camps and cottages. “That brought (the median price) down a bit,” she said. Home sales from January to September last year increased from the same time in 2016 in all three counties.
The number of houses sold during the first three quarters increased in Jefferson County by 130 homes, or 18.3 percent, from 711 to 841; in Lewis County by 13 homes, or 8.9 percent, from 146 to 159, and in St. Lawrence County by 63 homes, or 12.7 percent, from 496 homes to 559. Foreclosure and waterfront home sales drove up the number of units sold last year in Jefferson County, Mrs. Staie said. The Kraft-Heinz plant expansion in Lowville led more people to buy homes in Lewis County, she said. “I think people are seeing the advantage of buying over renting,” Mr. Evans said. “It looks like we’re going to have a lot higher number for units sold than we had in previous years.” The median price for homes during the first three quarters of 2017 in Jefferson and Lewis counties, however, fell compared to the same time last year. The median home price for the first three quarters this year decreased in Jefferson County by $3,500, or 2.5 percent, from $138,500 to $135,000, and in Lewis County by $15,500, or 14.7 percent, from $90,000 to $105,500. Both price drops were driven by foreclosure sales, Mr. Evans said. “There are always foreclosures. There will always be foreclosures,” Mr. Evans said. The median price in St. Lawrence County for the first three quarters of 2017, however, has remained relatively flat for the past four years. The price for the first three quarters of 2017 only increased by $1,000, or 1.3 percent, from $88,000 to $89,000. “We don’t have huge jumps,” in price, Mr. Wood said. Statewide, home sales in the third quarter decreased from the same quarter in 2016 by 1,248 units, or 3.1 percent, from 39,693 units to 38,445 units, according to the New York State Association of Realtors. The statewide third-quarter median home price, however, was up this year by $12,500, or five percent, from $249,000 in 2015 to $261,500.
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NON PR OFITS TODAY
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Giving, Sharing, Makes Lives Better
onprofit organizations across the country are looking at the implications of the tax reform bill on the work they do and those they serve, including operational and compliance issues, potential related state and local government changes and the impact of the increased standard deduction as it relates to charitable giving. Changes in laws that affect nonprofits have direct impact, and make a statement on how we view their role in our society and the value we place on them. At the same time we were hearing about tax reform, media retrospectives were reminding us of lives lived and lost. The year-end summaries honor those who have left an imprint on our world. It is in those moments that we have a heightened sense of the way others affect our lives and shape us. The most profound legacies are those that reach deep into our collective, human souls and the heart of our communities. There are diverse ways others touch us and leave their mark but there is a common theme. As a society and as individuals, the greatest meaning comes from that which makes us uniquely human. Throughout our lifetimes, the things that become the fabric of our culture and heritage are the expressions of the essence of our humanity. Each December, the Kennedy Center recognizes those whose talent and ingenuity have enriched and shaped cultural life in America. The Library of Congress Gershwin Prize celebrates the work of artists whose careers reflect lifetime achievement in promoting song as a vehicle of musical expression and cultural understanding. There are numerous other awards that we
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bestow that affirm the values and ideals we hold most dear. It is through these that we celebrate and uphold what matters most to us. What this has to do with nonRande Richardson profits? When I hear acronyms such as NPOs, NGOs and NFPs to generalize the nonprofit community, I cringe. When I see legislation enacted that devalues charitable investment and its role in our country, I am disheartened. Somehow, in the generalization of “nonprofit,” something gets lost in the translation. If you take the time to think about the way nonprofit organizations have become part of all of our lives, you realize that they are simply a formal expression of our humanness. They embody the values and beliefs that make us human. They represent the best in the human spirit that demands that living life by simply existing is not enough. Our nonprofit organizations are a primary mechanism through which we make a difference in the lives of others and express our values. They are the way our own lives are made more enriched and fulfilled. Their importance goes beyond a classification. Our community’s nonprofit organizations not only provide a tangible link to the golden rule, they also are the way we sustain things government and the private sector should not or cannot alone provide. It is natural to generalize when we
place groups in a sector. In doing so, however, we must not lose sight of what the sector actually is. In a world where over-generalization happens too often, we should pause and see nonprofits as an extension of our human existence and our love for the things that make life worth living. As long as there are good people in our world, those organizations providing the most value will find the support needed to continue. If you found a way to make a difference in 2017, congratulations. You already know how it feels to experience something so fundamentally human. Use 2018 to find more opportunities to express what matters most to you. It is in this way, that nonprofit organizations quickly become more than a sector, more than an acronym. They are an essential part of our lives, they are worthy of our care and nurturing. Ultimately, they are a clear reflection of ourselves. When you look back on the retrospective of your own life, may it have had meaningful moments that are consistent with the core of the beliefs and values that our nonprofit organizations embody. So what are nonprofits really? They offer us opportunities to surround ourselves with things that really matter, and, in the end, help ensure that we have more happiness and fewer regrets through this transitory experience called life. Giving, sharing, volunteering and working for a better world makes our lives better, tax deduction or not.
n RANDE RICHARDSON is executive director of the Northern New York Community Foundation. He is a lifelong Northern New York resident and former funeral director. Contact him at rande@nnycf.org.
Shovel Ready Lots Available in the City Center Industrial Park
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CONTACT WLDC TODAY - GROW YOUR BUSINESS TOMORROW!
• Fixed-interest loans for real estate, machinery and equipment • Working Capitol financing • Leasehold improvement financing • Assists in securing primary financing through commercial banks Watertown Local Development Corporation (WLDC) 82 Public Square Watertown, NY 13601 28 | NNY Business | January 2018
For help with expanding or relocating your business to the City of Watertown
Contact: Donald W. Rutherford CEO
Phone: 315.786.3494 Fax: 315.786.3495 email: don@watertownldc.com
AG RIBU S I NE S S
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An Agricultural Outlook for 2018
ntense anticipation for the next farm bill stems from the pressure that farmers are under due to the “kick me while I’m down” status the industry has experienced the last few years. Low commodity prices, unpredictable weather, diminishing markets, raise in minimum wage, and just plain getting older to name a few. While some have adapted to survive the times, others have had no choice but to sell out. Martin Luther King, Jr., who we honor on the 15th day of this month, said “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.” With the drought of summer 2016 leaving farms with minimal options other than to pay to drill more wells, pay for water to be trucked in, and pay for their feed commodities to be sourced in because they were unable to grow a sufficient crop on their own land, wallets were also sucked dry. Coming into the fourth year of low milk and commodity prices, farms could have used a bumper crop year in 2017 to help compensate, but instead fields were flooded by rain. Planting and harvest was less than desirable and sometimes impossible. To learn more about making the best out of your core acres and feeding the right crop versus the best crop during tough years (among other great dairy related topics), see Joe Lawrence/Ron Kuck speak at Dairy Day Jan. 23 at Ramada Inn in Watertown. To register, call CCE Jefferson at 315-788-8450 or email me at amc557@cornell.edu In challenging times it is common to feel like you are alone in your struggles; this is not the case. Financial and emotional counseling is available to help you make the best decisions for the farm and your family. Such services are available through local organizations like Cornell
Cooperative Extension, NY FarmNet, SCORE, Farm Credit, and USDA Farm Service Agency. HOW THE GOVERNMENT COULD HELP: FARM BILL AND TAX REFORM
Alyssa Couse
The first farm bill was in 1933 as a response to major hardships resulting from events such as The Great Depression and Dust Bowl and they continued sporadically in the decades to come. It was not until the 1970’s that the farm bill was taken up by Congress on a set, four–year schedule. The latest is available for download on the USDA’s website if you’d like 357 pages worth of light reading. The farm bill has been described with analogies like a two–engine freight train or a Swiss army knife with many tools available for use in a pocket–sized gadget. Though these objects are drastically different, they both indicate that the farm bill is multifaceted. It contains 12 titles and while content remains fairly constant, titles can vary from farm bill to farm bill: Title I: Commodities, Title II: Conservation, Title III: Trade, Title IV: Nutrition, Title V: Credit, Title VI: Rural Development, Title VII: Research and Extension, Title VIII: Forestry, Title IX: Energy, Title X: Horticulture, Title XI: Crop Insurance, and Title XII: Miscellaneous. Unbeknownst to most, 80 percent of the funds go to nutrition programs. Budget reconciliation, which allows for reconsideration of certain tax, spending and debt limitations, is important to mention in the context of the 2018 bill due to
the fact that House and Senate Republican leaders have announced their intention to use this tactic at least twice throughout 2017. Dairy, crop insurance, and commodities are among the areas stated to be in need of substantial reform. For example, the Margin Protection Program that was created for dairy in the 2014 Farm Bill has left many dairy producers severely dissatisfied. Many farms grow their own crops to feed their animals so improvements to these programs could have a positive impact on multiple aspects of their farm business. Several states would like disaster assistance to farmers facing droughts and other extreme weather events. Although Northern New York doesn’t have to deal with enormous wildfires or relentless hurricanes like other areas of the country, there is no doubt that drought and excessive precipitation has taken a significant toll on our local agricultural industry over the recent years. In addition to the potential changes brought about by Farm Bill 2018, the new tax reform recently passed in late December could provide some relief for farmers. A few ways the new tax bill could benefit farmers include repeal of estate tax, full expensing of certain capital investments, and lowering of tax rates on pass-through businesses, which comprises 94 percent of farms (heritage.org). In last year’s economic outlook from Jay Matteson, an underlying message was one of hope. It seems that this sense of hope for the future has only intensified looking towards 2018.
n ALYSSA COUSE is an agricultural outreach educator for Cornell Cooperative Extension of Jefferson County. Born and raised in the north country, she feels at home working with Jefferson County residents, both two-legged and four -legged. Contact her at amc557@cornell.edu.
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January 2018 | NNY Business
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R EA L E STATE ROUNDUP
Women’s Council of Realtors Honors Area Realtors
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he Tri-County Women’s Council of Realtors Network recently honored the top 20 percent of Realtors in the St. Lawrence County Board of Realtors and in the Jefferson-Lewis Board of Realtors in two separate events. The honor was based on the units closed by each Realtor. The third Annual St. Lawrence County Top Producer Event on Sept. 12 took place at the Gran-View on the River in Ogdensburg. The evening was sponsored by Community Bank NA, Elite Home Inspections, Fairport Mortgage, Gouverneur Savings and Loan, Key Bank, Northern Credit Union, North Country Savings Bank, and St. Lawrence Federal Credit Union. Thirty-seven St. Lawrence County Board of Realtor members were honored based on sales between August 1, 2016, and July 31, 2017. Lucille Kassian (Kassian Real Estate) was honored for the most units sold. The rest of the Realtor honorees (in alphabetical order) were: Gail Abplanalp, Sharon Alford, Christine Amo, Tracy Bernard, Penny Bogardus, Allison Chadwick, Nikki
Coates, Patricia Collins, Rick Cutway, Linda Dufrane, Sarah Franklin, Cathy Garlock, Matthew Garlock, Rowena General, Debbie Gilson, Karen Gurrola, Janet Handschuh, Michael Lance Evans Kassian, Suzanne Liberty, Alexander MacKinnon, Darleen March, Brittany Matott, Erin Meyer, Martha Morrison, Timothy Post, Doreen Radway, Rhonda Roethel, Kim Smith, Wendy-Jane Smith, Lori Snyder, Nicholas Sterling, Jennifer Stevenson, Diana Thayer, Elizabeth Trego, Richard J. Wood, and Cheryl Yelle. The eighth annual Jefferson-Lewis Top Producer Event was held at the Edgewood Resort on Oct. 26. Sponsors of the event included Homestead Funding, the Jefferson-Lewis Board of Realtors, Key Bank, and Northern Credit Union. There
were 79 Jefferson-Lewis Board of Realtor members honored. The awards were based sales or rentals between Sept.1, 2016, and Aug. 31, 2017. The top honoree for sales was Amanda Miller. The rest of the Realtor honorees for sales (in alphabetical order) were: Britton Abbey, Roger Abbey, Michael Ablan, Mary Adair, Lois Aubin, Joy Baker, Jeremy Briggs, Marcia Brooks, Sara Bulger, Vicki Bulger, Patricia Calhoun, Yvonne Carle, Walter Christensen, Libby Churchill, Kathy Cook, Katherine Couch, Melanie Curley, Courtney Dibble, Carole Dunbar, William Elliott, Kenneth Erb, Jennifer Flynn, Cathy Garlock, Matthew Garlock, Anne George, Scott Gerni, Joan Gerni LaLone, Marsha Gibbons, Michael Hall, Janet Handschuh, Les Henry, Jeffery Jones, Eileen Kaleel, Amy Kenney, Amanda Kingsbury, Barry Kukowski, Lisa L'Huillier, Tyler Lago, Brenda Malone, Amanda Mattimore, Erin Meyer, Elizabeth Miller, Gail Miller, Gwyn Monnat, Cynthia Moyer, Rob Moyer, Lori Nettles, Bambi Norman, Lorie O'Brien, Deborah Peebles, Karen Peebles, Lori Porter, Jeff Powell, Tammy Queior, Maxine Quigg, Desiree Roberts, Gayla Roggie, Nancy Rome, Jill Rosette, Marcia Slocum, Jason Smith, Vickie Staie, Nicholas Sterling, John Stevens, Barry Stewart, Nancy Storino-Farney, Bernard Sturr, and Jennifer Waite. The top Realtor for rentals was Lisa Spear Woodward. The remainder of the Realtor honorees for rentals (in alphabetical order) were: Teri BenitezDrake, Clifford Bennett III, James Conlin, Sonia Conlin, Jennifer Flynn, Joan Gerni LaLone, Marsha Gibbons, Michael Hall, Gerald Jackson, William Leepy, Micah Matteson, Cynthia Moyer, Rhonda Rogers, and Nicole Washer. The Tri-County (NY) Network of the Women’s Council of Realtors was founded in 2008. Members live in Jefferson, Lewis, and St. Lawrence counties. Its mission is to work to advance women and men as real estate professionals and leaders in business, the industry, and in the communities they serve.
n LANCE M. EVANS is the executive officer of the Jefferson-Lewis Board of Realtors and the St. Lawrence County Board of Realtors. Contact him at levans@nnymls.com. His column appears monthly in NNY Business.
30 | NNY Business | January 2018
T OP T R A NS ACTION The following property sales were recorded in the Jefferson County Clerk’s Office in the month of December: $299,900: Dec. 13, Town of Henderson: 0.44 acre of land more or less, Snowshoe Road, Thomas E. Besaw, Kimberly A. Besaw, Watertwon, sold to Rajan Julka, Christine T. Julka, Cicero. $255,000: Dec. 18, Town of Pamelia: 1.118 acres of land more or less, Patterson Road, Kristy A. Admas, Watertown, sold to Young Kim, Hye Hyun Kim, Evans Mills. $254,826.54: Dec. 22, Town of Antwerp: No acreage listed, 37846 County Route 25, Lakeview Loan Servicing LLC, Virginia Beach, Va., sold to Veterans Affairs, Nashville, Tenn. $200,000: Dec. 11, Town of Orleans: 2 acres of land more or less, no address given, Bruce Spearnock, Jayme Spearnock, Clayton, sold to William A. Walldroff and Jaylea E. Walldroff, Clayton. $200,000: Dec. 18, Town of Ellisburg: 0.998 acre of land more or less, no address given, Lewis C. Kibling, Watertown, sold to Anthony Alicea, Maria N. Alicea, Adams. $193,293.02: Dec. 11, City of Watertown: No acreage listed, 121 Pearl Ave., Robert P. Bogdan, Sackets Harbor, as referee for Denver O. Doran, sold to Veternas Affairs, Nashville, Tenn. $188,358.47: Dec. 22, Town of Champion: No acreage listed, 43 Bridge St., Robert L. Smith, North Bend, Ohio, sold to Carrington Mortgage Services LLC, Anaheim, Calif. $182,000: City of Watertown: No acreage listed, Holcomb Street, Robert G. Roux Jr., Sarasota, Fla., Frank Valentine Lezamiz, Ft. Benning, Ga.
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20 QU E STIONS
PHOTOS BY CHRIS LENNEY
SENATOR RITCHIE LOOKS TO 2018
S
enator Patty Ritchie, R-Heuvelton, has been serving the public since 1986. The St. Lawrence County native sat down with NNY Business to talk about how these experiences have shaped her approach to governing and shares thoughts on issues such as agriculture, tourism, jobs, small business success and the state of the north country economy.
n Job growth, the future of agriculture and crossborder cooperation are top priorities.
NNYB: You began your political career as St. Lawrence County clerk. How did this experience help shape your fiscal approach as a senator?
NNYB: What is the single biggest issue that the north country faced economically in 2017?
RITCHIE: I guess I would say that my experience as county clerk has shaped me in two ways: First of all, I believe I got elected because of my customer service attention as county clerk. And that’s something that is very important to me in this role and something that I take great pride in. I think people would probably be surprised that we literally have over thousands of people that we’ve been able to help with their problems. Sometimes, even for me, it’s frustrating; it’s a regulation or something in Albany that people are dealing with that you think they should just be able to call up and get it fixed and they can’t. Luckily, they call us and we’re able to address that. So that’s the first part. When I was county clerk, I always saw it as my own challenge each year when we had to present our budget, to do a little better and find a way to help reduce the taxes and help find a different 32 | NNY Business | January 2018
way to bring in more revenue. With that, I was able to start the New York City (vehicle registration) business, which I’m pretty proud to say has actually brought in millions of dollars for St. Lawrence County. It’s something that I believe has been a real revenue generator for the county and helped to keep taxes down.
RITCHIE: I think the issue of jobs. Jobs have been my number one priority; I believe it’s an issue that is going to be my number one priority going into the new year. I think when people look at the unemployment rates, they actually have gone down, but I think for many they believe jobs and the economy is the number one issue, too. I know one thing that is surprising for me is that we always say, “Oh, there’s no jobs,” but it’s kind of two-part: There are jobs in the area, and what I hear from employers, over and over again, is that they can find people to actually fit the position that they’re looking to hire. I know on pretty much a weekly basis, because I’m dealing with the nursing crisis here, whether it be finding nurses for the hospitals, the nursing homes, or even the St. Lawrence Psychiatric Center. I toured the prisons that I represent – five of them – there’s a nursing crisis there. So nursing is one area that showcases there are jobs available, but matching
them up and making sure people have the right skills is an issue. Agriculture is a big industry, so it was important to me to help start, with seed funding, the Ag Academy here in St. Lawrence County. More and more, when the FFA students come to Albany you’d probably be surprised at the ratio of non-farming families that the kids that are coming from when it comes to the agriculture industry. More kids are getting interested and we have to make sure we’re showcasing the opportunities at a younger age level if they’re growing up on a farm. Manufacturing has, unfortunately, put a damper on the area with firms closing and a lot of jobs that tie into it. So it’s been a priority for me when it looks like there’s an opportunity to be more aggressive, the zinc mine that’s just hiring, that is a business that has struggled a little bit to get attention in Albany and I was able to reach out to the “second floor” (governor’s office) and to NYPA and try to help the situation along. All of us should be thrilled that that many jobs are coming back to St. Lawrence County. We have a lot of potential here and one of the things I don’t think we’ve focused enough on is our proximity to Canada. Time and time again, I think that there’s an untapped market. With the new cross-border group I set up with my colleagues up across the border, I think there’s a lot of opportunity there and it’s something I think New York can capitalize on.
2 0 Q U E S T I O NS The Patty Ritchie File AGE: 55 JOB: New York State Senator, representing the 48th Senate District FAMILY: Husband, Tom; son, Tommy and his wife Kari; daughter Jessica and husband Ryan; son Kevin; and four grandchildren, Landon, Lexi, Aryanna and Maxim. HOMETOWN: DePeyster EDUCATION: Graduate of Heuvelton Central High; Mater Dei College and SUNY Potsdam. CAREER: Worked for the Department of Motor Vehicles from 1986 to 1999. She was then elected as the St. Lawrence County Clerk, a position she held from 2000 through 2010. In 2010, she was elected to the New York State Senate. LAST BOOK YOU’VE READ AND WOULD RECOMMEND: Alexander Hamilton, by Ron Chernow.
NNYB: What is going to be the biggest economic issue facing the north country in 2018? RITCHIE: I think tourism, of course; we’re still dealing with the high water issues. I think it’s incumbent on all of us to make sure that we prop up the tourism industry, we make sure that we tell all the people that we’re open for business, that this is still a wonderful place to come. On pretty much a regular basis, I can talk to some of my colleagues in Albany and they have no idea that there’s a place called the Thousand Islands in New York state. And when I tell them about Boldt Castle, and that if they’re looking for their summer vacation they should come up, I think they’re all pretty much amazed. So, I think tourism is something we can capitalize on. We do need to make sure we pay more attention to tourism and the industry this year given the issues with the flooding last year. NNYB: You chair the Senate’s Agriculture Committee. What measures can the state implement that will provide a direct economic impact to farmers by improving their bottom line in the coming year? RITCHIE: I think there’s a number of things. This past year, we had record funding, $51 million, for the industry, which is of course New York’s number one industry. With that, we were able to restore the $10 million cut in the executive budget. Some of the things that go along with that, Cornell is a big part. On a regular basis I try to showcase Cornell and how New York is lucky to have the cutting-edge research there. Whether you’re here or somewhere else in the state, the first thing some of our farmers tell us is the research going on at Cornell helps their bottom line, whether it’s helping with
pest management, or helping with a new crop. Cornell is something that the state should make sure we’re funding to the level to help our farmers, whether it be in the north country, Central New York or across the state. The Ag Academy is something that was I able to put the seed money into to help get off the ground. FFA has been something that has been a priority for me, making sure that we’re getting young folks interested, something that is definitely a challenge as our farming population ages and the average age of a farmer is 57. It should be concerning for all of us. We have to find new ways to entice young folks into the industry. This is an exciting time, though, for agriculture. This is the first time, I believe, people are really paying attention to where there food comes from. In a previous budget, I was able to secure $1 million for the Food Hub, something that’s been talked about for years and Cornell Cooperative Extension took the lead on that, and I think we’re actually going to see some great things come out of that. NNYB: Your “New Farmers Grant Fund” and “Grown in New York” initiatives are designed to promote innovation in agriculture and preserve the future of family farming. Have these initiatives proven successful? RITCHIE: I think there are a lot of opportunities with, again, the public now being aware of where their products come from. I think a perfect example is, a few years ago, Christmas tree farmers came in and they were telling me that they didn’t have money for promotion, and that the biggest untapped market was New York City; they couldn’t get Christmas trees there. We were able to put some funding in the budget and for the past two years they have been able to expand in New York City and just recently
I had a meeting with the association and they told me they cannot keep up with requests from New York City. I think that’s just a perfect example of how we can grow the industry if we just make sure we’re putting the people with the right matches on the other side, connecting farmers and a market. NNYB: You played a role in easing travel requirements for boaters between the United States and Canada. How does this benefit the north country economy? RITCHIE: That was something that was personally important to me because I had grown up here, a couple of miles from the border, and when my kids were young they went to hockey practice in Canada when the rinks were full. So it’s hard to kind of see Canada as maybe another country, because the back and forth is so regular. But once the Canadians put (strict reporting requirements) in place, and the gentleman’s boat was confiscated and he potentially was going to face a huge fine, it was important to reach out to our Canadian neighbors and ask if there is a way to address this. And luckily, (Canadian) Senator (Bob) Runciman was willing to pick up the phone and work with me on that. It was a real privilege to be able to travel to Parliament and testify. It’s certainly something both Senator Runciman and I are proud of and believe is going to be a big benefit to make sure that those regulations were rolled back. Charter fishermen were worried about the same thing, so I think it just showcases what can be done if you’re willing to pick up the phone and work together. NNYB: Tourism suffered this past summer due to unusually high water levels on Lake Ontario and the St. Lawrence River. What measures did January 2018 | NNY Business
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20 QU E STIONS you take to help alleviate some of the economic disruptions caused by these levels? RITCHIE: It was early on that you could see that there was going to be problems that we thought might have been more short-term, but that ended up lasting until Labor Day. So the first calls I got were from residents who were looking for sand bags. Because a lot of communities had never experienced it, they had no idea how to get the sand bags or how to even start the process. I was able to reach out to the governor’s office and get sand bags available in the area; that was the first step. But the problem that was only supposed to be
a short-term issue ended up extending much longer and the damage was pretty great. So, I was able to tour a lot of the places in the three counties that I represent, go back to my conference and tell them we need some kind of financial help, because some are not going to be able to survive this – small businesses, especially – and many are not going to be able to repair it. I know this is something that a lot of people were worried about, that as it continued on, there weren’t going to be enough resources. So after we passed the initial bill, I was able to have pretty much daily conversations with the governor’s staff about additional resources and
get a commitment that those that weren’t able to file (for financial assistance) right away, that by the time they did file the resources would still be there. So that’s something when we go back we’ll continue to make sure is put in place so that those filing, anyone who’s filing a claim that can be paid under the guidelines, the resources will be in place. NNYB: Without being a weather forecaster, what can be done to help make the 2018 summer season more successful for seasonal business owners? RITCHIE: It was important for me to ask my colleague (Sen. Tom O’Mara), who is the chair of the environmental committee, to come up and hold a hearing, because that’s the biggest question everyone is asking, even more so than the resources: “If I do fix this, if I do make it over the hump, am I going to have to go through this again next year?” Because one year’s bad enough, we can’t do this again. So that’s why it was important to have the hearing, to see if there is anything that could be put in place and, I’ll be honest with you, I believe there were some things that were changed under (Plan 2014) that may have tied the hands of those that could have started to release water at a lower trigger level. I have sent a letter to the IJC (International Joint Commission) asking them to take a look at it. I know they currently have a survey out there, so I’m hoping that we’re going to see some changes, maybe some amendments to what was put in place so they can react sooner. We all know that climate is changing, as far as unpredictability. I’m sure no one would have thought the previous year we would have been dealing with drought issues and the next year we have flooding issues. So we have to be better prepared to react and it’s important that the IJC take a real look at it and if there’s anything that can be done on their end to address the situation earlier, that needs to be done. NNYB: Fort Drum is the largest driver of the north country economy. What role can a state senator play in ensuring that the base retains this importance? RITCHIE: First and foremost, is to make sure people realize that Fort Drum is here. Like I said earlier about the Thousand Islands, when I got elected and went to Albany, I must say that other than a couple of senators who represent the area around me, most had no idea that Fort Drum existed here. And if they did know that Fort Drum is here, they certainly had no idea the size and how many soldiers and families were here. So, this is the seventh year that I will be holding my Fort Drum Day in Albany and that is a way to showcase Fort Drum’s importance not just to the north country, but to New York state as the state’s largest single-site employer. But also to the nation; it’s something that
34 | NNY Business | January 2018
2 0 Q U ES T I O NS we should all be proud of. We are also making sure we are putting Fort Drum in the strongest position. Since I’ve been there, we’ve been able to put upwards of $14 million in programs to help with (thing such as) the buffer zone; that’s the encroachment issue that many other bases are dealing with and something that this post here doesn’t have to deal with given the proximity of the farmland and what’s been done at the state level. So I think there are a number of things at the state level that we can do just to make Fort Drum showcased a little more and a little stronger in the standings if for any reason there were another BRAC (Base Realignment and Closure). NNYB: The governor’s Regional Economic Development Council has provided funding for job creation and business investment in the north country, but is sometimes seen as pitting one region against another. Is there a better way to create jobs in the north country and the state? RITCHIE: I have had my concerns about this in the past and sometimes, especially with the Downtown Revitalization Initiative, it has kind of pitted one community against another. There is one thing about the program that certainly I’m supportive of and this is, for the first time, people who are on the ground, who are local, can actually put forth recommendations that can be taken to Albany, instead of the other way around. So, I think it is helpful, that the regional council gets applications that come from the local communities and then there’s a way for that to be transferred to Albany. So it’s not Albany making all the decisions, it’s coming from the locals. NNYB: The 2 Percent Property Tax Cap is designed to control spending by local governments, but municipalities routinely vote to override it. Is the cap reasonable and should it be made permanent? RITCHIE: I certainly support the 2 percent cap. I think it’s gone a long way toward helping to keep taxes down, which is a serious issue in New York state. The one thing I don’t think we’ve done enough is providing mandate relief at the state level, so that local governments can stay beneath the tax cap. There are a couple drivers when it comes to property taxes and one of them is Medicaid. I believe if we’re looking to help keep taxes down we should look at those mandated costs, such as Medicaid, and do more to help reduce the burden the states sends down, in order for counties and local municipalities to stay under the tax cap. NNYB: The state has enacted free tuition for the majority of SUNY students. This should be a boon to the north country’s SUNY colleges and its students, but is it financially sustainable?
RITCHIE: That is the concern that I had when it was proposed. There is a price tag to it and no one really knows what the price tag is. But I certainly am a supporter of trying to make college affordable and that’s kind of two-fold: I certainly supported increasing TAP (Tuition Assistance Program). I think it’s a good way to allow resources to be put in place for those that are going to college. Sometimes, there are students who aren’t able to finish their degree, especially here, in four years and so there are some problems with what was put in place. But one of the bigger pieces that I think was left out of it, and something that I tried to get attention to, is that those students that already have gone through college and have a huge college debt, it’s a little unfair to them that now there’s something put in place, but nothing to help them with their student loan debt. Especially with the interest rate so high. So I’ve been advocating for some way for the state to help those who have a college debt find a way to refinance to help knock the interest rate down so that the loans can be paid off sooner. There is a little bit of a fairness issue, I believe, when it comes to this; that we didn’t look at the second half of the equation and those that are graduating or have just graduated with a huge college debt, we’ve got to find some way to help them pay that off. NNYB: Regional air service is an important component to the north country economy. What steps are you taking to help ensure that this service is maintained? RITCHIE: Watertown’s airport was just an awardee under the regional council as our regional hub. Here in Ogdensburg, the nonstop flight to Florida is really been something that people that I represent have been thrilled with; they’re able to fly to Florida from Ogdensburg. That’s why it was important to me when the (Ogdensburg Bridge and Port Authority) reached out and was looking for resources for advertising in Canada – because that is something I had heard from my Canadian counterparts – that there wasn’t enough promotion on the other side of the river for Canadians to really know the service was here. So, I think that’s an economic generator, having Canadians come over and take the flight, but more than that, when you have a business looking to locate in an area, one of the first things they look at is ease of access, whether it’s someone coming in from the company to be able to fly in or a prospective client coming in, making sure that there is air service available. So maintaining those local airports that would help entice businesses in, especially Canadian businesses, is very important, for sure. NNYB: The state is moving toward a $15 per hour minimum wage. Given the economic reliance on small businesses in the north country, is this a positive thing?
RITCHIE: I had concerns about $15 an hour because this is a rural area and the small businesses are the backbone of our area. Now, I don’t think there’s anybody who doesn’t want to see someone get an increase in their pay and be able to be in a better place financially. But when it comes back and hurts the business, who either cuts down on employees or ends up closing up, it does the exact opposite. So that’s why it was important to regionalize it. That $15 I did not believe was sustainable in the north country, that $12.50 for some businesses is still going to be tough, but I think that was a lot more manageable than the $15 was going to be. I guess the perfect example of that was right after the governor put in (wage changes) for fast-food workers, the McDonalds in Canton closed. So I had a meeting with the executives at McDonalds, asking, “What can we do?” And they said they needed to invest in a drive-through and with the change in minimum wage, it wasn’t economically feasible for them. So that’s 40 jobs that disappeared from St. Lawrence County. And I think that was part of the discussion that we were trying to have, that everyone wants to do what they can to help somebody’s ability to provide for themselves and their family. At the same time, there’s a cost on the other end, so if you’re providing a wage that no business can pay and stay open, then we’re actually defeating the purpose. This is something that I think will be ongoing that we’re going to have to watch. NNYB: Legislation has been introduced in Albany to allow over-the-counter sales of marijuana to anyone over the age of 21, a measure which would impose an excise tax that would provide millions of dollars in new revenue to state and local governments. Is this a responsible way for government entities to balance their budgets? RITCHIE: Right now, we’re dealing with a huge drug epidemic and I just don’t believe that now is the right time to allow free use of marijuana, given the situation we’re dealing with now with the opioid crisis. NNYB: The fight against heroin had taken its toll on municipalities, both in financial terms and human suffering. Is the answer tougher criminal penalties or more treatment options? RITCHIE: I think it’s both. I know it’s been frustrating for me in Albany that the Senate repeatedly passes bills that impose tougher sentences for those that are dealing drugs and the Assembly will not move any bills forward. When it comes to stiffer penalties, it’s a serious issue. The second part of the question is: I don’t believe we have enough services. You run into families on a regular basis that I think people would not believe would be a family that would Please see RITCHIE, page 38 January 2018 | NNY Business
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COM M E R CE CORNER
I
Focus for a Vibrant Future
often find myself ringing in the New Year by reflecting on the past twelve months both personally and professionally and categorizing what worked and what didn’t, how fortunate I am and how I can make improvements for the future. For the sake of this column, I will leave the personal reflections out and focus on the efforts put into the future of the Chamber of Commerce. At the chamber office we regularly discuss the importance of our members and how to best serve the needs of businesses in the Greater Watertown region. For 2018 we are focused on strengthening the value of our organization to promote and support business and industry and enhance the community in which we live, work and do business. Plans are in place to educate members on the tools and programs available to them through the chamber. We will focus on retaining the interest and involvement of our existing members and want an even better understanding of each of the businesses we serve. What are your wants and needs? How can we fulfill them? I look forward to having these questions answered by getting to know each of our
member businesses better, and continuing to build upon our success while attracting new members, focusing on young professionals and enhancing our overall communication. With changes to the horizon on Kylie Peck many levels – federal, state, local – the chamber looks to establish partnerships more than ever. There are many entities in the region that can broaden opportunities to our membership base. We look forward to strengthening partnerships in the areas of business development, education and networking and continue to foster our relationship with Fort Drum. If you are a business or organization that would like to partner with the chamber, or if you have thoughts on a partnership that you feel would benefit the business community, please share them with us. We are always
accepting of suggestions from the community we serve. As we take on 2018 and focus on our goals established for the upcoming years, we are excited to have two new team members on staff. We welcome Director of Events Kayla Perry and Director of Marketing Jessica Piatt. Each of these women bring vibrancy and enthusiasm to our organization and will help us reach our goals of connecting with young professionals in the region and enhancing our utilization of social media among many others. Kayla and Jessica join us with skill sets that complement each other and enhance the Greater Watertown-North Country Chamber of Commerce team. As you continue to map out your year and implement established plans, I encourage you to visit our office to see how we can play a part in a successful 2018. The GWNC Chamber office is located at 1241 Coffeen Street, Watertown, and meetings can be scheduled by calling (315) 788-4400. n KYLIE PECK is the president and CEO of the Greater Watertown-North Country Chamber of Commerce. She lives in Clayton with her husband and two young boys. Contact her at kpeck@ watertownny.com or 315-788-4400.
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T
When is it Time to Buy?
his month’s column was guestwritten by Kiah Sugrue, an advisor at the Watertown Center. Kiah has been with the Watertown SBDC since 2014. She came to us with a BS in Business Administration from SUNY Potsdam and several years’ experience in the banking industry. Kiah is also a licensed real estate agent.
There comes a point when a business may think about purchasing a commercial location rather than continuing to lease. Although this has its upsides, there are also risks and it ultimately comes down to the bottom line. If you’re contemplating a change in business location, there are things to consider. Will your customer base follow you, or are there more target customers in that location? Without a customer base, sales can quickly diminish. Talking with your existing customer base will let you determine if they are willing to travel to the new location. Researching the demographics will help you better understand what your new sales potential can be. A statistical search of the population is important; you should include age, gender, income, schooling, occupation, race, family etc. Understanding the demographics of your target customers is critical, and having an already-existing successful business gives you a leg up because you already know the audience you currently attract. Before deciding to move, you’ll also want to talk to your current employees to see if they are willing and able to follow you. If not, you’ll need to hire new employees that have the skills, qualifications
and experience your business needs. Accessibility of a new business location can be another risk. Life nowadays is so busy with demands of family and work; the Kiah Sugrue easier and more convenient a business’s location is, the more it will be desired by consumers, employees and your suppliers. You must consider traffic patterns, transit routes and parking access. Consulting with your suppliers before moving is important, too, knowing they’re able to access the new location to make their deliveries, as well as discussing any potential changes in delivery costs. Once you’ve determined your potential customer base, availability of dependable employees and access to suppliers, then you’re ready to start estimating the bottom line. Even if you’re not moving your business, but buying the building you’re already in, purchasing commercial real estate comes at no small price. It’s not like buying a home with little to no down payment. You must have access to capital because a lender will not finance a commercial building at 100 percent loanto-value, so plan to put a minimum of 10 percent down. It doesn’t end there; you need to show that the investment makes good sense by proving the feasibility of the business. You’ll provide existing financial docu-
mentation, personal financial statements, a business plan, a list of current and new assets and cash flow and profit and loss projections. You may be eliminating a lease payment and common area maintenance fees, but that will be replaced with a large commercial loan. With ownership comes real estate taxes, and liability costs may increase. You will be liable for the health and safety of individuals within the business as well as insuring the actual property. Regular repairs and maintenance will fall on your shoulders, and there may be utility and operational cost changes to consider. Lastly, you will want to be prepared for loss of liquidity. Businesses tie up much of their liquidity when buying real estate and it’s not always easy to sell, particularly in a down market. At the same time, businesses that do own real estate at least have an asset to sell if a cash infusion is needed to recoup business debt. A proper study of the impact of a new location on your customers, personnel, suppliers and finances can lead you to your final decision on whether or not to purchase real estate for your business. The New York Small Business Development Center at JCC offers free, individual, confidential counseling to new or existing business owners in Jefferson and Lewis counties. For more information, contact 315-782-9262, sbdc@sunyjefferson.edu. St. Lawrence County residents can contact their SBDC at SUNY Canton, 315-3867312, sbdc@canton.edu. n KIAH SUGRUE is a certified business advisor with the New York Small Business Development Center at SUNY Jefferson. Contact her at ksugrue@sunyjefferson.edu.
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January 2018 | NNY Business
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20 QU E STIONS Continued from RITCHIE, page 38 be dealing with an issue. If anybody says that it doesn’t touch just about every family one way or another, then they’ve kind of got their head stuck in the sand. This is an issue, whether it’s a family member or friend, it’s at crisis level and we need to make sure that there are treatment centers available. When someone is looking to get help, telling them they are going on a list and it will be six months before they’re able to get in there, or that their insurance doesn’t cover it, or their insurance is going to allow them to stay in there for a couple of days when it’s a program that takes several weeks to complete successfully, is just the wrong approach. NNYB: Cormorants have negatively impacted the area’s fisheries. What can be done to manage the cormorant population and improve the local fishing industry? RITCHIE: Cormorants is an issue that I’ve also been involved in. For years, the cormorant population was out of control; it was pretty much decimating the fishing industry. Unfortunately, the U.S. District Court put a ruling in and a mechanism, or a plan the DEC (Department of Environmental Conservation) had put in place that was actually turning around the situation – the fish population was increasing again – has
now been put at a stall. It’s something that, DEC is the expert, they had a plan that was working, and they need to back off an allow DEC to do their job. NNYB: You have been a strong proponent of redeveloping vacant land at the St. Lawrence Psychiatric Center in Ogdensburg. What opportunities could such a redevelopment present? RITCHIE: I don’t think it’s just the psychiatric center property; all you have to do is drive through there and see that the state has a lot of land, across the state, that is underutilized or not utilized at all. A few years back, before I was elected, there was a piece of property, which is the lot that we started with, that there was somebody interested in developing, but when they tried to get the land transferred from the state they just couldn’t make it happen. We were able to get the bill passed for the property to be transferred, and I was able to secure $300,000 for the city to use to demolish some of the buildings. Because that’s one of the issues: that the city has a prospective customer for the property, but the city can’t take on a huge debt when it comes to demolishing buildings that, unfortunately, the state has let decay. Right now, I believe they’re in the environmental study portion of it and it’s something that I believe, once they are able to transfer the property, there will be somebody
who would be willing to invest in some jobs on the lot next to Route 37. Along with that is the next part, which is the riverfront property; it’s one of the most beautiful pieces of land on the St. Lawrence River that’s undeveloped and it’s not being used and it’s not back on the tax rolls. Given the financial situation of the city, what better way to help the city economically than to put this land that the state has owned for years – and a lot of it has fallen to ruins – back onto the tax rolls and have an ability to have an investor invest in it. NNYB: Residents along the St. Lawrence River in the town of Orleans have expressed frustration that the state has not offered enough financial help to deal with contaminated wells that residents claim were caused by runoff from a nearby state salt barn. Is there any additional financial relief from the state on the horizon? RITCHIE: I understand Orleans’s frustration. That is an issue that I inherited when I was elected and something that I’ve continually advocated for for funding from the state. I was able to convince my colleagues in the Senate to include in our Senate budget full funding the Orleans water line; unfortunately, I couldn’t get the Assembly to go along with it. So I did advocate at a meeting I called together in Albany with the players, including the “second floor” to find funds to piece the $3 million gap together so that the project could go forward. If you’re just asking my unscientific opinion, I do believe that the state should pick up the tab for the water line in Orleans. NNYB: What is the one thing you’d like to see happen in 2018 to benefit the north country economy?
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RITCHIE: We have to be more aggressive on the jobs situation. I think it’s important that we work together to talk about businesses that maybe would be looking to come here, instead of piece meal. When I get the call that the mine is potentially looking to come here, but they have some issues, whether it be funding issues, or regulations, and I try to fix the problem, I think it would be helpful to have a group that would sit down and focus on it. I was able to put together this Canadian group that is going to continue to meet with our counterparts and the group continues to grow and we continue to get calls from other municipalities that want to be a part of it. The regional councils, as I said earlier, that comes from the ground up, and I think we need something globally that gives us an opportunity to try to showcase what we have to offer up here to bring businesses up, because it’s about jobs and it’s also about trying to address the issues that we’re having with filling jobs that are available. ~Interview conducted by Holly Boname with questions compiled by Brian Kelly. Edited for clarity and length to fit this space.
NNY BUSIN E SS FE AT U RE Continued from HIGH WATER, page 19 IN SPITE OF LAST SEASON, BUSINESSES ARE OPTIMISTIC FOR 2018.
Boldt Castle, which is responsible for an estimated $40 million of the Thousand Islands region’s economy, saw a marked downturn in visitors last year. The castle in 2017 welcomed 186,600 visitors—down from 204,094 in 2016, according to Shane Sanford, Boldt Castle’s facilities director. Based on standard entrance fees to Boldt, that’s a combined loss of around $166,193 in ticket sales alone. Flooded docks made it impossible for tour boats to unload visitors on Heart Island. To fix this, Sanford said secondary docks were built on top of existing docks. That costly work meant shutting down Heart Island for the entire second week of May—right around the time the castle should have been opening. “We met challenges every day,” Sanford said. The Boldt Yacht House, an attraction in and of itself, couldn’t open until Aug. 5 because of ongoing repairs throughout the summer to undo water damage. “We [also] had to relocate US customs operations on the island. Some of our buildings dockside were submerged. The water also had an effect on other buildings, where Heart Island’s Power House was inundated with water and we were never able to open that all summer.” The power house’s interior was flooded with 17 inches of water. Those repairs were still being made as of this writing. Overall, Sanford estimated the repair costs to be in the hundreds of thousands of dollars for Aster Tower, Boldt Yacht House, Power House, and temporary dock alterations. Still, Boldt Castle—along with Singer Castle in Chippewa Bay—enjoyed an uptick in attendance during the second half of the summer while temperatures climbed and water receded. Overall, the tourist attraction enjoyed its ninth-best season since 1977, and hosted 65
weddings. “When water finally started to recede we had a beautiful fall,” Sanford said. “We were blessed with some terrific seasonal weather.” Boldt Castle is slated to open May 12 of this year—an opening Sanford said the whole region is anticipating optimistically. “We are always looking forward to getting open again and the season starting,” he said. “I really think the Thousand Islands is starting to be recognized for the great destination that it is.”
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January 2018 | NNY Business
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EN V I R ON MENTAL BUS IN E SS
T
Environmental Restoration Program Benefits Many
he New York State Department of Environmental Conservation (DEC) often plays a critical role in the environmental remediation of properties that contribute to improving the economic outlook of an area. DEC’s Environmental Restoration Program (ERP) assists local municipalities with cleaning up contaminated properties, many of which are former industrial or commercial sites. Historically, these sites were a town’s job center, but are now defunct and examples of New York’s industrial legacy. The ERP reimburses municipalities up to 90 percent of eligible on-site costs, 100 percent of eligible off-site costs, and up to 50 percent for building demolition (depending upon site specific conditions, such as if the building must come down to address the contamination beneath it). These state investments allow municipalities to return these sites to productive use, which greatly benefits the local economy and surrounding communities. Jefferson County residents are familiar with the 1000 Islands Harbor Hotel in the village of Clayton. Situated along the St. Lawrence River, the hotel is a featured destination for tourists, families and community celebrations. Located at Webb Street and Riverside Drive, the property has fantastic views of the islands and is within walking distance of shopping and other amenities. At one time, the property was the home of a snowplow manufacturer, and in its heyday, offered decent wages and a claim to fame for the surrounding community. Snowplow fabrication involved the cutting, welding, rolling, and painting of raw steel. The manufacturer eventually went out of business and ceased operations in 2000. The town of Clayton acquired the site through foreclosure five years later and in doing so, was stuck with cleaning up this now-abandoned industrial site.
40 | NNY Business | January 2018
However, the town chose to see the opportunity in returning this prime real estate to the market. The town applied for DEC’s ERP assistance and after an extensive remediation process, Judy Drabicki DEC announced in 2010 that the cleanup was complete. This cleared the way for the eight-acre parcel to be returned to productive use. It was good news for the environment, public health, the local
economy and the Clayton community and the region will benefit from this restored property for decades to come. In addition, visitors can feel confident when sitting on the grass to watch the fireworks over the river they are protected from the property’s contaminated history. It’s not an easy task to remove environmental contamination. Remediation takes cooperation, collaboration and time and effort to succeed. But when it works, it is exciting for the property owners and investors. In November 2017, the Village of Sackets Harbor Local Development Corporation announced, in collaboration with Hi-Lite Airfield Services, that it
planned to build a $5.4 million corporate headquarters on what once was the Atlantic Fuels Marketing Corporation Terminal Site (AFMC) located on the village’s western edge. In the 1920s Mobil Oil Corporation used the site as a petroleum bulk storage facility. During World War II, the facility expanded its operation and installed a pipeline to transfer fuel from barges in Black River Bay to the site. Petroleum storage activities continued at the site until 1988. DEC became a partner in the investigation and remediation of the site in 2007, and oversaw the cleanup. Three years later, contractors removed 428 tons of grossly contaminated soils. And in 2014, 15,489 cubic yards of petroleum impacted soil were excavated and remediated. After extensive testing and analysis, DEC determined that the contamination had been removed from the property, and in March 2017, DEC presented a Certificate of Completion to the village and the former bulk petroleum site was declared shovelready. New York State earmarks as much as $10 million a year to ERP projects. High demand exists for ERP dollars and as DEC continues to fund additional projects, hopefully more funding will become available. DEC does transformational work in communities, cleaning up formerly contaminated sites and putting them to good and productive use. If you dig deep enough into the history of some larger properties, you’ll more than likely find we were involved in making sure the environment was protected along the way. n JUDY DRABICKI is regional director, Region 6 NYSDEC, with a career that spans three decades of ensuring the natural beauty of the north country is protected and enjoyed for generations to come. She oversees a staff of more than 200 people, including engineers, biologists, permit writers, Forest Rangers and Environmental Conservation officers, operations staff, and many others.
BU SIN E S S L AW
E
Intersection of Business & Estate Planning
state planning is pivotal for a business owner to ensure their objectives and wishes are carried out upon their passing. There are several types of estate planning tools that are available that can be applied to all types of businesses including limited liability companies, sole proprietorships, corporations or partnerships. Business succession planning must include ways not only to ensure that your business continues, but to also ensure there are minimal tax consequences. This article focuses solely on sole proprietorships and limited liability companies. The biggest concern and question that needs to be answered is whether or not you intend for the business to continue to operate after your death. It will ultimately depend upon what type of entity is controlling your business as to the ease of the business continuing. There are different rules and consequences if the business is a sole proprietorship versus a limited liability company. A. SOLE PROPRIETORSHIP
A sole proprietorship is the simplest and fastest way to establish a business. The business can operate under the individual name with minimal requirements to start the business. A sole proprietorship is an extremely common way for an individual to run a business. With a sole proprietorship there is no separation between the business and the owner operating the business. Therefore, with a sole proprietorship there needs to be deliberate and active estate planning to ensure the business itself is protected and to specify what you want to happen to your business after your death. The owner of the business should have a Last Will and Testament executed that specifically discusses their intentions with the business. This type of business is not going to seamlessly continue after the
person passes away because it is solely associated with the deceased owner. Depending upon the planning in place, the owner’s will may have to be probated with the Surrogate’s Court to ensure Megan Kendall the owner’s wishes are carried out. There may be a delay from the time the owner passes until the executor is appointed to either continue the business or to carry out the wishes of the owner in regards to the business. Some types of businesses cannot afford to have any delays and need them to continue without interruptions. If the business cannot be delayed, then a sole proprietorship is not the best business entity for you. I would recommend discussing other business entities with an attorney to determine which entity meets all of your business goals, including your estate planning needs. B. LIMITED LIABILITY COMPANY
A limited liability company in New York is an entity that is filed with the State Department. The structure of a limited liability company is similar to a corporation and provides the flexibility of a partnership. Individuals who own and operate a limited liability company are referred to as members and can be sole member or multiple member companies. A limited liability company is controlled by the operating agreement. The operating agreement contains important and pivotal information in regards to how the business shall run, who manages the business, and who the
members of the company are. The operating agreement is going to be pivotal when discussing estate planning concerns with your attorney. Generally, the operating agreement will discuss what happens to the business and/or the members when they pass away. It should provide very clear and specific instructions in regards to what actions need to be taken after a member passes away. If the intention of the member is to have the business continue to operate after their death, then there should be language added to the operating agreement to ensure that occurs. The language should state that upon the death of the member their interests in the company shall automatically terminate and shall directly transfer to the named incoming members without any further action needed from the incoming members. Also, it should state that the original member and his/her estate shall have no further rights in the company or assets, and that the estate is not entitled to hold an economic interest or have any other interest in the company. Adding this language to the operating agreement shall allow the business to continue without any interruptions and will assist with the overall goal of estate planning. It eliminates the need for the Members estate to become involved in the business. This can be an extremely helpful tool in to use with estate planning. I recommend speaking with an attorney prior to making any decisions in regards to your business to ensure what you are proposing is the best option for you. n MEGAN KENDALL is an associate attorney at Conboy, McKay, Bachman & Kendall LLP, and practices in areas of estate planning, real estate, and business law. She is a member of Clayton Lions Club, Clayton Improvement Association, Herring College Trust, T.I. Community Foundation, Association of the Blind andClayton Opera House. Contact her at 315-788-5100.
It is a great time to buy or sell real estate. The Jefferson-Lewis Board of REALTORS invites you to visit www.nnymls.com, then contact one of our members and let them show you how to in Northern New York.
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January 2018 | NNY Business
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NN Y BUSINES S FEATURE
Agricultural Outlook:
Changes expected in dairy, immigration and insurance
T
he coming year promises big changes in the federal dairy program and, just maybe, the fix to immigration policy New York farmers have been seeking for years. Those are some of the highlights of agriculture policy that lawmakers, lobbyists and farm groups have been putting together for 2018, the year when Congress is due to write a new five-year farm bill and to make a last-ditch effort on Republican priorities ahead of the November midterm elections that will determine control of the House of Representatives. In New York, the dairy program tops the agenda. Most lawmakers who work on dairy policy agree that the program devised in the last farm bill, in 2014, isn’t working well. Called the Margin Protection Program for Dairy, the system helps farmers buy insurance to protect them when milk prices tumble, relative to the cost of feed. Farmers ended up paying millions of
dollars into the insurance-type program without receiving much in payments in 2015 and 2016, when prices fell from about $24 per 100 pounds of milk to $16. “While we often say that the farm safety net is designed for times like these, the Margin Protection Program in the 2014 Farm Bill has provided virtually no assistance,” House Agriculture Committee Chairman Mike Conaway (R-Texas) said at a hearing on dairy policy in March. The National Milk Producers Federation, which represents farmer-owned cooperatives, has been working with lawmakers to craft changes, but they’ll likely increase the cost to the federal government, said Christopher Galen, an NMPF spokesman. “This will require additional resources, and we’ve been in conversations throughout 2017 with ag leaders on the Hill, as well as with the new team at USDA, to explain the program’s deficiencies and what it will take to rectify them,” Galen said. A few changes are already in the
CHRISTOPHER LENNEY n NNY BUSINESS
A crew of five at Five Mile Farm, in Lisbon, can milk 350 cows in the farm rotary milking parlor. 42 | NNY Business | January 2018
works, following a campaign by the NMPF to attach provisions to a spending bill moving through the Senate. That measure, a not-yet-final appropriations bill for the fiscal year that began Oct. 1, reduces the premium farmers have to pay on policies for the first five million pounds of milk and changes the USDA’s calculation of the margin from a twomonth average to monthly, making it more likely they’ll receive payments. Congress will have a chance to revisit those details early in the new year. Congressional leaders say both chambers could vote on versions of a farm bill by spring; the 2014 law expires Sept. 30. Sen. Kirsten E. Gillibrand (D-N.Y.), a member of the Senate Agriculture Committee, is pressing for changes, her office said. “We must replace the failed Margin Protection Program with real risk management tools that help farmers when prices fall below their cost of production. Falling dairy farm income, caused by protracted low milk prices, is leading to an unsustainable loss of farms and consolidation within the industry,” her office said. Beyond dairy policy, Conaway and Senate Agriculture Committee Chairman Pat Roberts (R-Kan.) have said they’ll have little if any ability to boost program funding, especially if they keep a promise to emphasize crop insurance in response to low farm returns in the past two years. Efforts to further extend insurance to specialty crops — a priority for Gillibrand, for instance — may run into budgetary pressures. There’s little indication crop prices will turn around soon. The USDA predicts corn prices to remain around $3.35 per bushel in 2018 and to remain below $3.60 through 2022, for instance, according to estimates from the Office of the Chief Economist. Issues that aren’t part of the farm bill are on the horizon, as well. Farm groups,
FEATURE including the NMPF, continue to push Congress for a guest worker program for agriculture, a version of which recently passed the House Judiciary Committee; that’s especially needed for dairy farmers, Galen said, because they don’t typically qualify for the H-2A program, which is geared toward seasonal workers. “Neither of these approaches is perfect, but what we need now is to build momentum behind some measure that will help farm employers,” Galen said. The Trump administration’s trade agenda has the dairy industry’s attention, too, and dairy groups will push for protection in any rewrite of the North American Free Trade Agreement, Galen said. U.S. dairy groups are looking for access to Canadian markets and to push back against recent adjustments in Canadian dairy policy that have made U.S. products less competitive both in Canada and against Canadian exports to foreign markets. Finally, farmers are sure to be affected by changes in the tax code that appear likely to be implemented in 2018 — but exactly how, remains to be seen, said Patricia Wolff, a lobbyist for the American Farm Bureau Federation. As of early December, details still needed to be worked out. As tax changes are implemented — assuming Congress passes the legislation — the treatment of business income from rental land and sales of assets, for instance, could change, she said, as could the tax write-offs farmers can take for business-related expenses.
Start the new year off rightmake your health a priority! Regular check-ups with your healthcare provider help ensure that you get the right tests and screenings for your stage in life. It’s important to find a provider that can get to know you and who will be there when you need them—not just when you’re sick but to help you stay healthy.
primary care offices near you: Canton | Hammond | Heuvelton Lisbon | Madrid | Morristown Ogdensburg | Waddington
TOMORROW IS WORTH DEFENDING.
For an appointment, call 315.713.6333 Find the provider that’s right for you at providers.claxtonhepburn.org A few of our primary care providers: Row 1: Maggie Ecker, PA-C; Alesha Pedersen, PA-C; Ken Hilborne, FNP-C; Row 2: David Adams, PA-C; Hillary Heaton, FNP-C; Jessicalee Hollis, FNP-C; Nikita Goliber, FNP-C; Row 3: Kathy Richey, FNP-C; Nupur Nagrare, MD; Shivangi Modi, FNP-C; Row 4: Brie Condict, PA-C; Angela Johnson, FNP-C; Ryan Young, FNP-C
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January 2018 | NNY Business
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COMMUNITY / BUSINESS CALENDAR
CANTON MONDAY, JAN. 22
Master Gardener Open House, 1 to 2:30 p.m., Cornell Cooperative Extension, 2043B State Higwhay 68. If you have ever wondered what the Master Gardener Volunteer program is all about, or considered getting involved, please join us for an informal and fun event. You will be able to meet current Master Gardeners, and hear about the varied and exciting projects they have been engaged with. Cost: Free. Information: Maria ‘Flip’ Filippi, Local Foods Program Leader & Harvest Kitchen Manager, mpf65@cornell.edu or 315-379-9192 ext. 229.
FRIDAY, MAR. 2 THROUGH SATURDAY, MAR. 3
Skills, Scale & Sustainability, Friday start at 9 a.m. and Saturday start at 5 p.m., Cornell Cooperative Extension, 2043B State Higwhay 68. Join Shane J. LaBrake for a 2-day intensive workshop that blends philosophy and pragmatic advice with hands-on training and real-life problem solving as you develop your small-scale agricultural endeavors. Based on lessons learned from a lifetime of work
44 | NNY Business | January 2018
and travel in food and farming, Shane provides unique insights from his practical experience of reconciling idealism with the nitty-gritty, day-to-day reality of maintaining a viable and sustainable enterprise. This class encourages thinking to clarify intention, and challenges the participants to create designs that will work for them. A binder of readings and other resource materials will be provided to each participant. Dress for the weather and be prepared to be challenged and engaged. Pre-registration required, class size limited to 12. Registration includes lunch and snacks each day. Cost: $50. Information/ registration: Maria ‘Flip’ Filippi, Local Foods Program Leader & Harvest Kitchen Manager, mpf65@cornell.edu or 315-3799192 ext. 229.
CARTHAGE SATURDAY, FEB. 10
20th Annual Winterfest Celebration, 10 a.m. to 2 p.m., Carthage Recreational Park. Enjoy cardboard sled races, horse drawn wagon rides, ladies frying pan toss, magic show, scavenger hunt, bingo, possibility of dog sled rides, great food and exciting events to ensure an enjoyable day for everyone. Items
will be available for raffle from a variety of area businesses. Cost: Free. Information: carthageny. com.
CLAYTON MONDAY, FEB. 26 THROUGH SATURDAY, MARCH 10
Captain’s license classes, Antique Boat Museum. U.S. Coast Guard licenses are required in order to legally carry passengers for hire; this includes charters for fishing, sightseeing, diving, transportation, and teaching. Commercial operations such as ferries, tugboats or supply boats also require U.S.C.G. licensed captains. Many boat companies may require licenses for boat delivery, as well. Boaters often seek their U.S.C.G. license in order to prepare for a second career on the water or to take their piloting skills to a more professional level. Whatever the reason for seeking a U.S.C.G. captain’s license, it can be earned at the Antique Boat Museum. Captain Carrie Jenne will teach the OUPV (also known as the six-pack), Masters, and Towing Endorsement licensing classes. ABM limits class size to 12 students so everyone gets the in-
LOWVILLE MONDAY, JAN. 29 THROUGH TUESDAY, JAN. 30
Baskets to Pallets- Introduction to Selling Wholesale, Monday at 10 a.m. start and Tuesday 4 p.m. start, Tug Hill Vineyards, 4051 Yancey Road. The ‘Baskets to Pallets’ course is designed for farmers of all enterprises and will cover building relationships with buyers, customer management and record keeping, pricing, grading and packaging, uniformity and consistency, and food safety, among many other topics. The course includes plenty of hands-on activities and opportunities for peer learning and small group discussion. The course includes one break-out session for livestock and produce farmers. Cost: $35. Information/ registration: 315-376-5270.
MONDAY, FEB. 12
Value-Added Dairy/Meat Production, 10 a.m. to 2 p.m., Cornell Cooperative Extension of Lewis County, 5274 Outer Stow St. The presentation will introduce attendees to the ins and outs of small-scale dairy or meat production. Participants can choose to listen to dairy or meat related topics. Information includes: how to get started, funding opportunities, examples of value-added businesses, how to decide what is right for your farm, and how to get started and regulation overview. Cost: $15 per person, with a light lunch included; $20 for two members of the same family. Information/ registration: 315-376-5270.
WATERTOWN FRIDAY, JAN. 26 THROUGH SATURDAY, JAN. 27
2018 Snowtown Film Festival, downtown Watertown . Two-day film festival organized to build appreciation for film making and to encourage the development of independent locally produced films. The Snowtown Film Festival offers official film selections, and a juried film competition. Cost: Free. Information: info@ snowtownfilmfestival.com.
SATURDAY, FEB. 10
COMMUNITY / BUSINESS CALENDAR
dividualized attention he or she needs to succeed. Instructors will also be available to walk students through the U.S.C.G. application process. Information/register: See the education page of the ABM’s website: abm. org or contact Debra Rantanen at drantanen@abm.org or call 315-686-4104, ext. 235.
SPCA Bark and Wine Auction, 5 to 9:30 p.m., Savory Downtown, Washington St. The Bark and Wine Auction will include dinner and an auction featuring Johnny Spezzano as the celebrity auctioneer, with hundreds of items in silent, live basket and gift certificate auctions. Cost: $50 per ticket. Information/tickets: 315-782-3260.
WEDNESDAY, APRIL 4
2018 North Country Matchmaker, Hilton Garden Inn, Arsenal St. The 2018 North Country Matchmaker is your chance to meet with buyers from prime and defense contractors and government agencies. Register to meet with influential purchasing agents and area resources. Whether your company is already selling to prime contractors and/or the government, or you want to start diversifying sales, this is a good networking opportunity. Cost: Pre-register, $25 per attendee; registration after March 23, $30. Information/ registration: business.watertownny.com/events. GOT A BUSINESS EVENT or calendar item? Email nnybusiness@wdt.net. Deadline is the 10th of each month for the following month’s issue. Visit us on Facebook at Facebook.com/NNYBusiness or nnybizmag.com for events calendar updates.
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January 2018 | NNY Business
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B USI N E SS S CENE Carthage Area Chamber of Commerce November Business After Hours
From left, Carthage Area Hospital Foundation board members Barbara Park and Michelle Ames.
ELAINE M. AVALLONE PHOTOS | NNY BUSINESS
From left, Kathy Caffrey and Bobbi Lincoln of the Carthage Area Hospital dietary department served up food for the Carthage Area Chamber of Commerce Business After Hours event.
From left, Becky Archer, owner of Split Endz Hair Studios, and Mary Wilsie, 1199 SEIU Union representative for Carthage Area Hospital.
ELAINE M. AVALLONE PHOTOS | NNY BUSINESS
From left, newly hired Carthage Area Chamber of Commerce executive director, Jeanette Turner and her husband, Peter J. Turner, superintendent of schools for the Carthage Central School District and former chamber board member were at the November Business After Hours event hosted by Carthage Area Hospital.
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46 | NNY Business | January 2018
BU SIN E SS S C E NE Clayton Chamber of Commerce December Business with a Twist
From left, County Legislator Bobby Cantwell, Lauran Throop, Clayton, Kelly Cantwell, Cantwell & Associates, and Daniel Throop, Clayton Country Club.
From left, Michael Hazlewood, Wood Boat Brewery and Theresa Astafan, Hazlewood Mechanical.
HOLLY BONAME PHOTOS | NNY BUSINESS
From left, Christine Tisa, Tisa Gallery, and Hans Wahl, French Creek Marina.
HOLLY BONAME PHOTOS | NNY BUSINESS
From left, Walter Cummings, Cummings Funeral Home, and Justice Walter Jeram, Attorney, attended the Clayton Chamber of Commerce’s December Business with a Twist at the Thousand Islands Museum.
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