NNY Business May 2015

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Y usIness

// SMALL BUSINESS: a new era begins

for one alex bay restaurant P. 22

MAY 2015 Volume 5 No. 6

a Vision for RENEWAL revitalization paves way for regional renaissance $2.95

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THE INTERVIEW Save-A-Lot franchisee Jeffrey L. Proulx p. 28

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2 | NNY Business | May 2015

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May 2015 | NNY Business

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Inside MAY 2015

14

22

44

26 |

COVER |

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PEOPLE |

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14 revitalizing nny Since 2011, the north country has seen nearly $250 million invested in redevelopment. |

9 ON THE MOVE The latest promotions and new hires at businesses across the north country. |

SMALL BIZ STARTUP |

13 A CHIC BOUTIQUE A Canton native has come home to open Luna, a new women’s clothing store.

SMALL BUSINESS |

22 A FAMILY TRADITION A changing of the guard at Alex Bay’s Cavallario’s Steak and Seafood isn’t all new.

REAL ESTATE |

26 Q1 REAL ESTATE REPORT A hard winter didn’t slow home sales so far this year. |

TOP TRANSACTIONS |

27 JEFFERSON COUNTY The top 10 property sales in the Jefferson and St. Lawrence counties totalled nearly $7.8m in March.

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BUSINESS SCENE |

40 NETWORKING, NNY STYLE From Jefferson to Lewis counties, businessmen and women connect for success. |

BUSINESS HISTORY |

44 A RECORDING LEGACY Graphic Controls provided consistent, steady jobs in Clayton for nearly 60 years. |

ONLINE |

NNYBIZMAG.COM Connect with us online for daily updates, more photos and exclusive Web content.

May 2015 | NNY Business

|5

C o n tr i b u t o r s

BusIness www.nnybizmag.com

Chairman of the Board John B. Johnson Jr.

Michelle Capone is regional development director for the Development Authority of the North Country. She writes about programs to support growth. (p. 32)

Lance M. Evans is executive officer for the Jefferson-Lewis and St. Lawrence County Board of Realtors. He writes about proposed rules for drones. (p. 25)

Rande Richardson is executive director of the Northern New York Community Foundation.

He writes about the vitality of volunteers in nonprofits. (p. 33)

Publishers

John B. Johnson Harold B. Johnson II

VP News Operations Timothy J. Farkas

Magazine Editor

Kenneth J. Eysaman

Staff Writer / Editorial Assistant Lorna Oppedisano

Graphic Design / Layout Lauren Harrienger

Lynn Pietroski is president and CEO of the Greater Watertown-North Country Chamber of Commerce. She writes about leading and motivating staff. (p. 34)

Jay Matteson is the agricultural coordinator for the Jefferson County Industrial Development Corp. He writes about new opportunities for agriculture. (p. 35)

Jill Van Hoesen is chief information officer for Johnson Newspapers and a 28-year IT veteran. She offers tips to maintain positive relationships with tech vendors. (p. 36)

Photography

Norm Johnston, Justin Sorensen, Jason Hunter, Melanie Kimbler-Lago, Amanda Morrison

Director of Advertising Michael Hanson

Magazine Advertising Manager Beth Hornbarger

Advertising Graphics

Brian Mitchell, Rick Gaskin, Heather O’Driscoll, Scott Smith, Todd Soules

Circulation Director Mary Sawyer

Lorna Oppedisano is a an editorial assistant and staff writer for NNY Magazines. In this month’s cover story, she writes about growth and revitalization.

She also features Luna Boutique and looks back in history. (pgs. 13, 14, 44)

Ted Booker is a Johnson Newspapers staff writer who covers business for the Watertown Daily Times. In real estate this month, he examines north country home sales and median prices for the first quarter of the year. (p.26)

MARKETPLACE The Antique Boat Museum ........ 7 Bay Brokerage ......................... 48 Blue Seal Retail Store ............... 43 Bonnie Castle Resort ............... 19 Bradley’s Trophy & Promotion .............................. 20 Caskinette’s Ford ..................... 38 Center for Sight ........................ 22 CFS Eye Boutiques of NNY ...... 39 CFS Hearing .............................. 33 CFS Medispa ............................ 40 Citec Manufacturing ............... 12 Clayton Dental Office ............. 43 Coleman’s Corner ................... 43 Community Bank ..................... 26 Community Bank Wealth Management ............................. 4 The Corner Grub ...................... 43 Cortel Improvement ................ 18 Creg Systems Corp. ................... 8 D.L. Calarco Funeral Home ...... 36

6 | NNY Business | May 2015

Dr. Guitar Music ....................... 43 Edd Burns Home Improvements ............................ 8 Fairground Inn .......................... 43 First Class Auto Glass .............. 24 Foy Agency .............................. 27 Fuller Insurance ....................... 27 Garlocks Design Center ......... 23 Grimsley, Dunn & Countryman Agency.............. 24 HD Goodale............................. 27 High Tower Advisors ................ 30 Hospice of Jefferson County .... 45 Hospice Spring Fling ................ 46 House No. 12 ............................. 3 Immaculate Heart Central Schools .................. 45, 47 Jefferson County Economic Development ........................... 19 Krafft Cleaning Service ........... 42 Lake Ontario Gift Shop ........... 43

Macar’s ..................................... 25 Momma’s Kitchen................... 43 Northern New York Community Foundation ................................ 21 Northwestern Mutual ................. 8 Nortz & Virkler Ford .................. 24 NYS Food & Wine Festival ...... 23 Rainbow International ............. 21 Sea Comm Federal Credit Union ............................. 35 Shred Con ................................ 32 T.F. Wright & Sons ..................... 37 Tunes 92.5 WBLH Radio .............. 9 Waite Motorsports .................... 41 Waite Toyota ............................ 34 Walldroff Farm Equipment ...... 46 Watertown Savings Bank .......... 2 Watertown Spring & Alignment ............................. 24 WWTI TV 50 ................................ 31 Ziebart ....................................... 24

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. © 2010-2015. 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 keysaman@wdt.net Advertising For advertising rates and information in Jefferson and Lewis counties, email bhornbarger@wdt.net, or call 315-661-2325 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.

|

INTERVIEW

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ABOUT THE COVER

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28 building trust in business With roughly 25 years in the grocery business, Jeffery L. Proulx shows no signs of slowing down.

A franchisee of eight Save-A-Lot stores, the Canton businessman talks about how he manages. |

COLUMNS

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32 ECONOMICALLY SPEAKING 33 NONPROFITS TODAY 34 COMMERCE CORNER |

DEPARTMENTS

8 9 10 12 13

35 AGRI-BUSINESS 36 BUSINESS TECH BYTES 37 SMALL BUSINESS SUCCESS

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EDITOR’S NOTE PEOPLE ON THE MOVE ECONOMIC SNAPSHOT BUSINESS BRIEFCASE SMALL BIZ STARTUP

25 38 40 44 46

real estate roundup CALENDAR BUSINESS SCENE BUSINESS HISTORY NEXT MONTH

For this month’s cover shot, photography editor Norm Johnston captured Washington Street Properties founder and CEO Brian H. Murray in the historic Lincoln Building, one of his latest acquisitions on Watertown’s Public Square. Mr. Murray is one of a handful of businessmen investing in redevelopment projects across the north country. Our cover story about Northern New York’s revitalization renaissance by Lorna Oppedisano begins on page 14.

May 2015 | NNY Business

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S

EDITO R’S N O T E ince 2011, developers have pumped more than $250 million into a host of projects aimed at adding much-needed supply to the region’s housing stock and bringing jobs to the

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Many projects have brought new life to old, historic buildings that for years sat idle, ready for demolition. The wave of progress has Ken Eysaman certainly put a new face on the region as a place where public and private investment works in tandem to improve our overall quality of life. In this month’s cover story, magazine staff writer Lorna Oppedisano takes an indepth look at what’s fueling the region’s revitalization renaissance.

Also this month, Lorna visits a Canton native-turned-entrepreneur who returned home after graduating from Drexel University in Philadelphia to open Luna Boutique, an upscale women’s clothing store. n

n

n

20 QUESTIONS — This month we sit down with longtime Canton grocer Jeffrey L. Proulx, a franchisee and owner of eight Save-A-Lot stores in St. Lawrence and Franklin counties and in New York’s Southern Tier. Jeff grew

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BUSINESS SCENE — This month’s Scene section, which begins on page 40, features nearly three-dozen faces from more than two-dozen businesses and organizations from across the north country.

On April 9, we joined the Greater Watertown-North Country Chamber of Commerce at the Bruce M. Wright Memorial Conference Center for the 2015 Job & Career Expo presented by the Chamber and The WorkPlace. Nearly 300 people turned out to network and meet with dozens of north country employers.

On April 15, we joined the Greater Watertown-North Country Chamber of Commerce for its April Business After Hours at Jose O’Connor’s restaurant and bar in Carthage. The event was cosponsored by Carthage Area Hospital and USO Fort Drum.

As always, if you have any questions, comments or general feedback, please contact me at keysaman@wdt.net or 661-2399.

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PEOPLE O N T H E MO V E

St. Lawrence County administrator named

Ruth A. Doyle, Lisbon, has been appointed to serve as St. Lawrence County administrator. She previously served as assistant county administrator.

County lawmakers voted 14-0 in favor of the appointment following an executive session at a special Doyle board meeting. The four-year term is effective April 6 and runs through March 31, 2019, and pays a salary of $104,248.

The new administrator was selected from a pool of 23 candidates who applied for the job. Three finalists were interviewed.

She is not registered with a political party and has worked for the county for the past 12 years. She has served as assistant administrator since February 2008.

The county administrator supervises 26 departments and about 835 county employees. Responsibilities include planning, budgeting, monitoring, policy enhancement and goal-setting.

Mrs. Doyle graduated from Le Moyne College in Syracuse in 1997 with a degree in political science.

Promoted to athletics director at St. Lawrence

St. Lawrence University President William L. Fox recently announced that Bob Durocher has been named director of intercollegiate athletics and recreation. HavDurocher ing served as the university’s head coach for men’s soccer since 1990 and assistant director of athletics since 2000, Mr. Durocher began his new duties April 1.

Mr. Durocher suceeds Margie F. Strait who served in the position from 1997 to January 2015. In 2010, Mr. Fox elevated this position, more commonly known in the industry as athletics director, to be a senior staff advisor reporting directly to the president. Mr. Durocher oversees

Got business milestones? n Share your business milestones with NNY Business. Email news releases and photos (.jpg/300 dpi) to editor Ken Eysaman at keysaman@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. strategic leadership of all sports programs, staff and facilities of the athletics department, which includes 83 employees. Additionally, he serves as chair of the University’s sports studies and exercise science minor.

Mr. Durocher joined St. Lawrence in 1990 as an instructor for exercise physiology and head coach for men’s soccer. He led the 1999 team to win the NCAA Division III national championship. Over the last 25 years, he has steered the team to 17 conference championships, 17 NCAA championship appearances and an overall record of 323 wins, 101 losses and 45 ties.

From 1993 to 2000, Mr. Durocher also served as director of the Stafford Fitness Center. In 2000, he was promoted to assistant director of athletics. In this role, he oversaw the administration and management of the Augsbury Physical Education Center and Newell Field House complex.

HCR Home Care introduces new teams

HCR Home Care recently introduced its teams of care professionals serving Jefferson and St. Lawrence County residents and their families. HCR’s teams aim to meet the needs of residents who require follow‐up care after a hospital stay or need help managing a health condition.

Jefferson County team members include registered nurses Darlene Harrington, Watertown, and Aislinn Peck, Pamelia; medical social worker Donald Mott, Watertown; physical therapists, Monika Docteur, Watertown, and Christopher Waring, Carthage; occupational therapist Kara Grosvenor, Evans Mills; speech pathologist Jennifer Mikula, Fort Drum; and home health aide Tanei Seals, Watertown.

St. Lawrence County team members include registered nurses Jennifer Johnson, Norwood, Connie Kavanagh, Canton, and Melinda Wiegandt, Heuvelton; physical therapist William Pena, Potsdam; and home health aide Karen Stevens, Gouvereur.

May 2015 | NNY Business

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Average per-gallon milk price paid to N.Y. dairy farmers March 2015 $1.54 February 2015 $1.60 March 2014 $2.23

30.9%

Source: NYS Department of Agriculture

366,729 in March 2015 296,404 in February 2015 381,319 in March 2014

Average NNY price for gallon of regular unleaded gas

Source: T.I. Bridge Authority, Ogdensburg Bridge & Port Authority, Seaway International Bridge Corp.

March 2015 $2.55 February 2015 $2.42 March 2014 $3.74

U.S.-Canadian dollar exchange rate (Canadian dollars per U.S. dollar)

31.8%

24.6%

14.4%

Source: Federal Reserve Bank of N.Y.

Average NNY price for gallon of residential propane

Nonagriculture jobs in the Jefferson-Lewis-St. Lawrence counties area, not including military positions

March 2015 $2.95 February 2015 $2.95 March 2014 $4.04

89,300 in March 2015 89,200 in February 2015 89,000 in March 2014

27.0%

0.3%

Source: NYS Energy Research and Development Authority

Source: NYS Department of Labor

Jefferson-Lewis Board of Realtors single-family home sales

St. Lawrence Board of Realtors single-family home sales

76, median price $120,000 in March 2015 49, median price $135,000 in February 2015 65, median price $95,900 in March 2014

33, median price $85,000 in March 2015 26, median price $77,250 in February 2015 22, median price $76,250 in March 2014

16.9% Sales

26.3%

50.0%

Price

11.5%

Sales

Source: Jefferson-Lewis Board of Realtors Inc.

Price

Source: St. Lawrence Board of Realtors Inc.

NNY unemployment rates

6.6

5.5 February 2015

March 2014

5.5

United States

March 2015

6.6

5.8 February 2015

March 2014

5.7

10.1 March 2014

8.9 March 2015

9.6

8.8 March 2014

New York State

February 2015

8.4

Lewis County

February 2015

7.5

St. Lawrence County

March 2015

9.5

8.7 February 2015

March 2014

8.1

Jefferson County

March 2015

ECON SNAPSHOT

March 2015 $3.13 February 2015 $3.026 March 2014 $4.15

3.8%

$1.27 on March 31, 2015 $1.25 on Feb. 27, 2015 $1.11 on March 31, 2014

Average NNY price for gallon of home heating oil

10 | NNY Business | May 2015

(Percent gains and losses are over 12 months)

Vehicles crossing the Thousand Islands, OgdensburgPrescott and Seaway International (Massena) bridges

March 2015

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.

Economic indicators New automobiles (cars and trucks) registered in Jefferson County Cars 447 in March 2015 329 in February 2015 361 in March 2014

23.8%

Trucks 104 in March 2015 96 in February 2015 105 in March 2014

NNY

1.0%

Source: Jefferson County Clerk’s Office

Passengers at Watertown International Airport

Open welfare cases in Jefferson, Lewis and St. Lawrence counties

3,135 inbound and outbound in March 2015 2,675 inbound and outbound in February 2015 3,232 inbound and outbound in March 2014

2,326 in March 2015 2,361 in February 2015 2,208 in March 2014

3.0% Source: Jefferson County Board of Legislators

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 April 1 to 28, 2015. For a complete list of DBAs filed in past months, visit www.nnybizmag.com.

April 28: North Country Against Cancer, 16260 Ives Road, Watertown, Jeffrey A. Wood, 16260 Ives Road, Watertown. n Ror-Lake Domestic Animal Boarding & Wildlife Rehabilitation, 613 Alexandria St., Carthage, Sandra Jean McCreadie, 613 Alexandria St., Carthage.

Just the Good Stuff, 70 N. Main St., Adams, Michele Colleen Browning, 6741 state Route 3, Henderson. n Installations Unlimited, 1037 Bronson St., Watertown, Angel Ramos, 1037 Bronson St., Watertown. n Woody’s Wheel Eze, 15077 county Route 91, Mannsville, Dale Terry Wood, 15077 County Route 91, Mannsville.

April 27: Cora’s Creations, 420 N. Main St., Mannsville, Rebecca Anne Sicley, 420 N. Main St., Mannsville. n Frozen In Time Photography, 420 N. Main St., Mannsville, Rebecca Anne Sicley, 420 N. Main St., Mannsville. n Tiny Totz Daycare, 420 N. Main St., Mannsville, Rebecca Anne Sicley, 420 N. Main St., Mannsville. n C & B Barber Shop, 24551 Hickey Road, Carthage, Courtney Clevenger, 24551 Hickey Road, Carthage. n Dock Doctor, 73 N. Main St., Philadelphia, Patrick Laidlaw, 73 N. Main St., Philadelphia. n Ahotli-Tlan, 125 E. Main St. Apt. 4, Brownville, Ileane Hernandez, 125 E. Main St. Apt. 4, Brownville.

April 24: Mud Bay Market, 28451 county Route 6, Cape Vincent, Stephanie L. White, 28451 county Route 6, Cape Vincent. n B & B Renovations, 27833 Bedlam Road, Evans Mills, Brandon M. Bauman, 27833 Bedlam Road, Evans Mills. n CLT Labor, 27615 U.S. Route 11, Evans Mills, Christopher Thompson, 26413 Alverson Road, Evans Mills. n Fit4Mom Watertown, 21338-C Sycamore Way, Watertown, Colleen O’Shaughnessy, 21338-C Sycamore Way, Watertown.

April 23: Woodburning by Margaret, 2147 county Route 95, Lorraine, Margaret Ann Harper, 2147 county Route 95, Lorraine.

April 22: Cassie’s Curiousities, 417 Tilden St. Apt. 2, Watertown, Cassandra Weed, 417 Tilden St. Apt. 2, Watertown. n Ten Below Auto Sales, 22769 state Route 180, Dexter, Luke P. Burns, 15804 Foster Park Road, Dexter. n Burns Landscaping, 15804 Foster Park Road, Dexter, Luke P. Burns, 15804 Foster Park Road, Dexter. n Great Outdoors Landscaping, 18155 Cross Road, Watertown, Renae Elayne Alysia Traynor, 18155 Cross Road, Watertown. n Precision Towing, 20563 Weaver Road, Watertown, Dana Lynn Desormo, 20563 Weaver Road, Watertown.

April 20: Watertown Juneteenth, 26095 Kestrel Drive, Evans Mills, Ellis D. Bianca, 26095 Kestrel Drive, Evans Mills. n Griffith Agency, 11821 Ramsey Shore E., Adams, William P. Griffith, 11821 Ramsey Shore E., Adams. n T & J Mobile Marine Service, 32287 county Route 4, Cape Vincent, Gary A. Phillips, 32287 County Route 4, Cape Vincent.

April 17: Sarges Crepes, 6441 Finish Line Trail, Brewerton, Jason M. Landry, 6441 Finish Line Trail, Brewerton. n Diamond Shine, 507 Clay St., Watertown, Nichole Marie Johnson, 507 Clay St., Watertown. n Tattoo 360, 831 Washington St. Apt. 5, Watertown, David Ortega, 831 Washington St. Apt. 5, Watertown. n Jesse D. Illingworth, 21600 Old Rome State Road, Watertown, Jesse Daniel Illingworth, 21600 Old Rome State Road, Watertown.

April 16: Bubba’s Backyard, 24808 county Route 54, Dexter, Derek J. and Mark J. Webb, both of 24808 county Route 54, Dexter. n Ngoc Quynh Nguyen — ATM, 21182 Salmon Run Mall, Watertown, Ngoc Quynh Nguyen, 851 Coffeen St., Watertown.

April 15: Brent Drake Contracting, 104 Red Lake Road, Theresa, Brent Drake, 104 Red Lake Road, Theresa.

April 13: Brandon Jones Construction, 13587 House Road, Clayton, Brandon Jones, 13587 House Road, Clayton. n Ladder 46 Food Command, 35376 Putman Hill Road, Carthage, Shane M. Jackson, 29919 county Route 4, Cape Vincent, and Kyle J. Gyurko, 35376 Putman Hill Road, Carthage.

April 10: Roadside Eats, 12249 Gobbe Hill Road, Henderson, Scott Lapell, 12249 Gobbe Hill Road, Henderson. n K & K Farms, 8644 Cemetary Road, Evans Mills, Linda Carol Kellaway, 8644 Cemetary Road, Evans Mills. n The Barn Owl’s Nest, 34020 Lamb Road, Carthage, Casey Jo Tabolt, 34020 Lamb Road, Carthage.

April 8: O & G Services, 640 Adelaide St., Carthage, Justin Clifford Nier, 640 Adelaide St., Carthage.

April 7: Saw Dust Inc., 9957 Main St. Apt. 3, Copenhagen, Kent Allen Bolke, 9957 Main St. Apt. 3, Copenhagen. n Detail This, 9231 Swan Road, Adams, Nathan Joseph Leviker, 9231 Swan Road, Adams. n Tropical Foods Express, 126 Franklin St., Watertown, Akiti Edirin Igho and Elizabeth Jackson, both of 126 Franklin St., Watertown. n Criss Cross Audio, 413 S. Hamilton St., Watertown, Christopher M. Alires, 413 S. Hamilton St., Watertown.

April 6: Found, 13952 county Route 155, Adams Center, Sheri A. Rose, 13952 county Route 155, Adams Center. n Reimagine, 917 Salina St., Watertown, Sandra Jean Garcia, 917 Salina St., Watertown. n TJB Lawn Service, 131 Barben Ave., Watertown, Thomas J. Bedard, 131 Barben Ave., Watertown. n I.J.M. Repairs, 273 Paddock St. Apt. 6, Watertown, Ian Jeffrey Mullin, 273 Paddock St. Apt. 6, Watertown.

April 3: Thousand Islands Ghost Tours, 3 Mance Lane, Alexandria Bay, Camette Chàrlee Hoffberg, 3 Mance Lane, Alexandria Bay. n Charlie Hawk Provisions, 272 State St. Apt. 2, Carthage, Bobbie Jean Stokes, 272 State St. Apt. 2, Carthage. n Mike Kampnich Roofing and Contracting, 16586 Evans Road, Dexter, Anthony Michael Kampnich, 16586 Evans Road, Dexter.

April 2: Aaron’s Trade Service, 123 Coleman Ave., Watertown, Aaron Clemons, 700 Lillian St., Watertown. n Cowboy Haven, 19449 state Route 177, Adams Center, Chad Michael Williams and Teresa Jo Williams, both of 19449 state Route 177, Adams Center.

April 1: DeliveryYes!, 13796 U.S. Route 11, Adams Center, Joseph Kyle Peters, 13796 U.S. Route 11, Adams Center. n Barb’s Budgeting, 333 S. Meadow St., Watertown, Barbara J. Lindsey, 333 S. Meadow St., Watertown. n Harper and Annie’s, 19859 county Route 3, LaFargeville, Alicia M. Dewey, 19859 county Route 3, LaFargeville, and Lori Arnot, 734 James St., Clayton. n Verse 1, 567 Mill St., Watertown, Ivory Love Carolina, 567 Mill St., Watertown.

transactions

DBAs

5.3%

May 2015 | NNY Business

| 11

BUSINESS BRIEFCASE TOURISM

Grant funds tourist attraction in Clayton

National Grid and the Thousand Islands Inn recently announced a $100,000 Main Street Revitalization Program incentive to offset construction costs associated with the inn’s renovation.

Investment in the property is expected to add more than 20 hospitality jobs that will contribute to economic development, job retention and growth in downtown Clayton.

Brad Minnick, of Wellesley Island, and

his business partner, Jamie Weinberg, bought the hotel in December 2013. The building is slated to reopen as a boutique hotel with 12 guest rooms and a new restaurant. Renovations of the first floor, including its dining room and bar, are expected to be completed by early summer.

The inn’s renovation includes the addition of a wraparound porch that was original to the building, and construction of a new lobby. Overhauls of major structural and mechanical systems throughout the building are under way, including upgrades to plumbing, electric and heating,

ventilation and air conditioning systems.

ENERGY

GE awarded grant for technology design

General Electric Global Research and GE Energy Consulting, along with National Grid, the Department of Energy National Renewable Energy Laboratory and Clarkson University, announced a partnership on a research project designed to improve the reliability and resiliency of electricity delivery in the north country.

The focus area will be Potsdam.

This project is intended to allow for the development of an enhanced microgrid control system, designed to be the key element in keeping the town’s electricity system up and running for several days should it become disconnected from the main power station. The project aims to help utilities, such as National Grid, better leverage distributed energy resources. It is fueled by a $1.2 million grant from the DOE’s Office of Electricity Delivery and Energy Reliability and a $300,000 investment from GE. The project plans to begin with 18 months of engineering and design at GE Global Research, followed by a six month testing period at NREL, where a microgrid simulating the infrastructure needs in Potsdam will be set up.

AGRICULTURE

Jefferson County firms nets USDA award, grant

The Development Authority of the North Country will receive a grant of $99,750 to help Agbotic Inc. develop and test robotic agricultural equipment. The startup was launched in January 2014 by Clarkson University graduates who have developed a robot for tilling vegetable crops that will limit the use of fertilizers and chemicals. Funding awarded to the startup is expected to create three new jobs and support the retention of three existing jobs.

The Clayton Local Development Corp. will receive a grant of $85,000 to support the purchase of bottling equipment leased to Clayton Wood Boat Brewery. The funding is expected to lead to the creation of 13 new jobs and help distribution.

The brewery is co-owned by Michael J. Hazlewood and Lance L. Peterson, both Clayton businessmen, and Steven Cook of Atlanta.

12 | NNY Business | May 2015

Small Business startup BUSINESS

Luna Boutique THE INITIAL IDEA

Canton got a little “cooler,” decades ahead of schedule. Last November, 22-year-old village native Hailey M. Hodge opened Luna Boutique, a women’s clothing store, in her hometown. She said she had planned to someday return home to give back to the north country and “make it cool,” but not until after getting 10 or 20 years of experience under her belt.

But after graduating from Drexel University in June, Ms. Hodge realized there was no time like the present.

“I had never just accepted that I could do that,” she said, referring to being a young entrepreneur. “And then the next day I started writing my business plan.”

TARGET CLIENTELE Ms. Hodge would like Luna to reach all Canton women.

Initially, she had thought her target would be 18 to 30-year-old women. But since opening her doors, she’s been proven wrong.

“Some of my best customers are 60 and 70,” she said. “Some of them are elementary school children.”

With the prices of most items ranging from $20 to $85, Ms. Hodge stresses that Luna is for people of all incomes. The shop stocks clothes, swimwear, lingerie, shoes and accessories. If a customer really loves something but is short on money, Ms. Hodge said she does the best she can to cut the price.

“Because it’s such a small town, if they come in with $20 dollars, I say have it,” she said. “It’s a very comfortable place.”

Ms. Hodge said one of the biggest challenges has been convincing the locals that Luna is actually for them, and not just catering to college students.

“Getting people to feel comfortable,” she said, “like they should come in and look around.”

THE JOURNEY While Ms. Hodge doesn’t have a background in sales, at school she gained knowledge of the fashion industry and created an award-winning business plan.

She also learned an important lesson: handson experience taught her that she preferred to be her own boss.

“I just really wanted to fix things that were wrong with everything,” she said, “rather than go along with the system and get paid every week.”

Once she decided to open a store in her hometown, the next step was to find a location.

Ms. Hodge knew that she wanted the shop to have personal atmosphere.

“I always said I wanted it to be more like a house and less like you’re walking into a storefront,” she explained. “A more intimate setting. I want it to seem like being in your closet.”

“It’s important to go back and give back to that small town you thought was so uncool.

Make it cool.”

— Hailey M. Hodge, owner, Luna Boutique

Soon she found a space that matched her vision, took a month and a half to renovate and opened the day before Thanksgiving last year.

One of the most useful assets during the process was the SUNY Canton Small Business Development Center, she said. The staff was supportive and helped Ms. Hodge cover all her bases.

Besides reaching the people of Canton, one of the biggest challenges Ms. Hodge has faced was finding companies that would sell wholesale to her. Now that Luna is established, she gets invited to trade shows, but before opening, she knew she wanted to offer brands other Canton shops didn’t carry.

“I’m not going to cannibalize our little area,” she said.

One might wonder why Ms. Hodge decided that Canton was the place for Luna. She had worked in New York City during college, and after graduating, her teachers told her to go back into the industry before setting up shop on her own. But she knew that she wanted to give back to her hometown.

“Also, I had my family for support,” she said.

“It made a world of difference.”

Ms. Hodge said her most rewarding moments have been personal ones with customers. When shoppers come in timid and quiet, and end up feeling as though they’re in the company of a

friend, she’s done the job right.

“Just making someone feel really good about their purchase, as opposed to me just trying to sell things,” she said. “Because where we are, there are not that many businesses that are a full experience.”

IN FIVE YEARS

Right now, Ms. Hodge is working on a website — lunaoutlet.com — that she would eventually like to see become an online store. She’s aiming to have the site up in the next few weeks, she said.

She would also like to add menswear and a rack of girl’s clothes in the future. She sees elementary school girls wear Luna shirts as dresses, she said with a laugh, and she’d like to offer clothing specifically for that demographic.

She’s also thinking about the potential for a second shop in a place that would support it, like Lake Placid. But she has no plans to leave the town that raised her. She might expand the original store, but Canton needs a shop like Luna, she said.

Ms. Hodge’s advice to other young entrepreneurs is to go back and give back to one’s hometown and make it a better place for everyone.

“Just do it if you want to do it,” she said.

“And get help from the services like SBDC. Don’t be afraid to get help or ask people.” ­— Lorna Oppedisano

WHERE 18 Park St., Canton | FOUNDED November 2014 | WEB Facebook.com/LunaCantonNY

May 2015 | NNY Business

| 13

COV E R STORY

Rising from the past for a

better future From Massena to Watertown, Ogdensburg to Lowville, efforts to revitalize urban centers take hold as public and private investment tops $250 million. Those involved say the north country is finally on a much brighter path since the 2008 recession battered the region.

R

BY LORNA OPPEDISANO | NNY BUSINESS

Recession. Brain drain. Economic downturn. They’re all-too-familair words for many in the north country. Domestic manufacturing began a steady decline years ago, and downtowns, a once-bustling hub of retail commerce across the country, fell into disarray. Few cities and towns had the time, energy or money to keep historic buildings once teeming with life from crumbling into disrepair. Small businesses have struggled. For those lucky enough to find a decent apartment, the rent was likely out of sight as the inventory of rental poperties atrophied.

But in the past three years or so, a light has started to shine at the end of a long, dark tunnel. Across the tri-county area, communities and developers have reinvested in downtowns. Buildings are being restored and repurposed. Small businesses

14 | NNY Business | May 2015

and residents alike are being drawn toward a redevelopment that has given birth to a renaissance of sorts.

“What’s starting to happen is that you’re starting to see a shift,” said Donald W. Rutherford, Watertown Local Development Corporation CEO. He explained that nationally, downtowns are transforming into environments where someone can actually start a business and be able to afford the rent.

Residents are now more likely to relocate to these urban areas.

“What a lot of the smaller cities in the state are trying to strive for is creating an environment like that,” he said.

Business owners across many north country downtowns are using money from New York Main Street grants to restore storefronts and reinvest in their communi-

ties. Companies like Croghan’s Grand Slam Safety and Ogdensburg’s Sherman Inn are making conscious decisions to open their businesses in vacant buildings rather than build new spaces.

The core of revitalization in the north country is downtown Watertown. Investments of more than $130 million have resulted in numerous rental spaces and some 300,000 square feet of commercial space. On a larger scale, more than 2,000 new rental units have gone on the market within a 30mile radius of Fort Drum since 2011.

Among these are the Woolworth Building, a $17 million project resulting in 35 one-bedroom and 15 two-bedroom units; the Solar Building, a decaying structure that Washington Street Properties purchased for $1.2 million in 2013 and has since renovated into 73 studio, one- and

C O V E R S T O RY

JUSTIN SORENSEN | NNY BUSINESS

Mark Pelletier, project manager for COR Development, Fayetteville, stands atop the rubble of the former Mercy Hospital site. COR began an aggressive $65 million to $75 million redevelopment of the site in 2014. The project is on track for completion in 2016 or 2017. The finished product is slated to have 40,000 square feet of retail and office space and 160 to 200 apartments. COR plans to build the apartments first, with the commercial space to follow.

two-bedroom apartments; Beaver Meadow Apartments, a $38.4 million project yielding 296 units, 60 of which are classified as affordable housing; and the Preserve at Autumn Ridge, a $56 million project resulting in 394 units.

And that’s just the beginning.

Jefferson County

Most activity in Jefferson County is arguably taking place in Watertown. With projects spearheaded by Washington Street Properties, COR Development, Morgan Management and VDI Properties LLC popping up around the city, it’s clear that the cityscape is changing.

“All those added together really help bring a focus to downtown,” Mr. Rutherford said. “Watertown is the largest city in the north country. And downtown Water-

town is the financial and governmental hub of the north country, and it’s important.”

After attending conferences around the state, Mr. Rutherford said he’s learned that a strong and vital downtown presence make for a strong local economy. City residents across New York are starting to gravitate toward living and working downtown, and Watertown is no exception.

These developments — many of them revitalizations of older buildings — broke ground in the city just a few years ago, and the area has already seen notable change.

Efforts to breathe new life into the city’s downtown most notably began in 2011 with the historic Franklin Building on Public Square. Once home to the city’s YWCA, the nearly $10 million redevelopment created 16 apartments and a handful of retail and commercial spaces. The North Country

Arts Council is a main tenant and plans are underway to compelte a boutique theater on the ground floor.

In 2013, Brian H. Murray, Washington Street Properties founder and CEO spearheaded a makeover of the Top of the Square mini-mall. Since then, more commercial and rental properties have been put on the map with investments by small property owners and major developers.

“A growing population downtown will make it more feasible for businesses to open and do well in downtown,” Mr. Murray said.

He described this phenomenon as a “snowball effect.” People move downtown, so there’s a large pool of local residents from whom potential employers can hire.

Businesses open, so there are more jobs for the potential local residents.

May 2015 | NNY Business

| 15

COV E R STORY

“So we’re on the positive side of momentum and some exciting changes for downtown,” Mr. Murray said.

Among those are Mr. Murray’s Lincoln Building and Arsenal Street Apartments and COR Development’s Mercy project.

“We found there’s a trend of young professionals and retirees who want to move back to the core of the city,” Steven F. Aiello, COR Development president, said.

COR refocused several years ago based on that national trend. When the company completed Towne Center Plaza several years ago, its first Watertown project that brought retail giants Target and Kohl’s to the region, Mr. Aiello developed a positive relationship with town and city representatives, who made the project run smoothly and wanted to see new economic development.

The shortage of new quality housing in downtown urban areas drew COR to explore further options in Watertown.

COR acquired Mercy Hospital in April 2013. The hospital had been active from 1894 to 1991, and mostly lay empty for the two decades following. The last tenant, a nursing home, left in February 2013. Many residents 16 | NNY Business | May 2015

moved to Samaritan Medical Center’s new Summit Village off outer Washington Street.

The $65 million to $75 million project is on track for completion in 2016 or 2017, Mr. Aiello said. The finished product is slated to have 40,000 square feet of retail and office space and 160 to 200 apartments. At this point, COR’s plan is to build the apartments first, with the commercial space to follow.

Mr. Aiello said COR plans lease 80 percent of the units at market value; the other 20 percent will be affordable housing. This way, working people with lower incomes can qualify for the same product. This could include a single mother, student or young professional who’s just starting out.

This will help put Watertown on the map with cities following the downtown trend, and help to sustain the snowball effect Mr. Murray mentioned.

“The young professionals, they want to be able to rent and live in the heart of the city where they can go out for dinner and walk to work,” Mr. Aiello said.

Which type of retailers COR hopes to lure into the space is still to be determined.

“We’ll see who approaches us,” Mr. Aiello

said. “Or we’ll go after and target certain things that will fill a void in that area.”

Mr. Murray’s downtown projects have seen success. He purchased the Solar Building in 2013 for $1.2 million. Once a space known for its troubled tenants, police calls and unkempt conditions, it’s now completely revamped and at full capacity with a waiting list. Mr. Murray said he attributes that in part to the easy walk from the building into downtown.

Mr. Murray recently purchased the former Rodeway Inn, 652 Arsenal St., for $1.3 million. He’s since revamped the old motel into 48 studio and one-bedroom apartments. Right now, the building is slated to be ready for move-in May 15. Almost half the rental units are studio apartments starting out at a special rate of $495 a month, including utilities.

“They’re nice, but they’re small,” Mr. Murray said, adding that this type of space would be good for a young single professional or solider.

This follows another trend, Mr. Murray said: smaller apartments.

“It just goes with more of a trend nation-

C O V E R S T O RY ally where people want to downsize and simplify their living,” he said.

Further down the road, the Lincoln Building is also slated for studio apartments, along with one- and two-bedroom units. Mr. Murray said construction on the apartments is likely to begin in 2016. The plan this year is to first proceed with façade restorations beginning in May; after that, he plans to start on the ground floor commercial space, with hopes to move tenants in by the end of the year. He plans to spend $1 million on the first phase of the project, which includes façade restoration and the first of five storefronts in six-story building.

The original estimated cost of the entire project is $13.7 million.

In terms of those tenants, Mr. Murray said there’s demand for any business that could cater to downtown workers.

“They all need a place to eat for lunch.

They’re all hoping to run errands,” he said.

“It’s just more convenient if they can take care of it right in downtown instead of having to drive to Arsenal Street.”

Another positive aspect about downtown is its central location, Mr. Murray said. For businesses that hope to attract customers from places like Carthage, Adams, Sackets Harbor and Fort Drum, downtown is right in the middle.

“Whether it’s a dance studio or a fitness center, it’s convenient if you’re centrally located,” Mr. Murray said. “Same thing goes if you need a central hub for service calls around the city.”

This revitalization has the potential to keep young entrepreneurs in the area.

These soon-to-be-available retail spaces create opportunity for small businesses to set up shop in a place that won’t charge an exorbitant rent, Mr. Rutherford said.

While a new downtown scene won’t attract those itching for a high-tech environment, it could help cork the “brain drain.”

“More so for entrepreneurs,” Mr. Rutherford said. “This is a decent place to start a business because the cost of living is relatively low.”

Looking ahead, Mr. Rutherford said he sees downtown continuing to grow.

“We have pretty much identified and addressed the buildings in the downtown area that were in drastic need of rehabilitation.

The majority of the high profile buildings have been or are being addressed,” he said, citing the Lincoln Building as an example.

These buildings will be put back into service, he said. The key, as Mr. Rutherford sees it, is to determine what type of businesses, restaurants and entertainment are needed to make downtown a destination point.

Mr. Murray agreed that people would

like to see more entertainment venues and nightlife in downtown, with more restaurant and bar activity.

He sees Watertown continuing to grow and become less dependent on Fort Drum in the future. He believes it’s unlikely that the military base will go anywhere, but there’s potential for some restructure.

“If the area continues to grow and downtown revitalization takes place, we will be able to diminish the risk of being overly dependent on Fort Drum,” he said.

Mr. Aiello also sees brighter days ahead for Watertown.

“I think Watertown, like many areas in the northeast, has suffered losses because a lot of manufacturing moved out,” he said.

“But I see more and more service-related businesses coming back in.”

He stressed that an area needs viable housing and retail and cooperation between state and local officials and agencies to move the process forward.

“It wouldn’t be possible without all these parties participating,” he said.

While downtown revitalization is in the forefront of development, it’s not the only change to the cityscape.

In the past few years, apartment complexes have popped up on the edges of the

city. Before COR Development took on the Mercy project, it began the Beaver Meadow Apartments behind Towne Center Plaza.

COR is now finishing construction of the second phase, which should be completed

by August, Mr. Aiello said.

“We should be fully leased by the end of this year,” he said.

Morgan Management, Pittsford, also plans to add more rental properties to the scene. The company plans to finish its $56 million, 394-unit Autumn Ridge complex north of Sam’s Club by summer. Morgan intends to expand the development on land east of County Route 202 and just north of Walmart, on a parcel it bought from developer P.J. Simao in January 2014 for $1.25 million. The new 359-unit townhouse complex is slated to be built in two phases and finished by fall of 2017. The two- and -three-bedroom units will have the same layout as Autumn Ridge. The Watertown Daily Times reported in November that site work is scheduled to start in early spring, with construction of the first phase beginning three months later. Morgan Management could not be reached for further update at this time.

Another developer involved with revitalizing Watertown is Patrick M. Donegan

May 2015 | NNY Business

| 17

COV E R STORY of VDI Properties LLC. Mr. Donegan’s most notable contribution to Watertown is Watertown City Center, a plaza home to various hotels and restaurants. He hopes to eventually attract a big-box retailer to the center, but that plan hinges on whether the city will build a connector road through the neighboring Stateway Plaza parking lot to Gaffney Drive at the northern end.

Closer on the horizon is development of the former Blockbuster Video property at 1240 Arsenal St., which Mr. Donegan bought from Aerco LLC, Vista Valley, Calif., for $1.3 in January. While it’s hard to attract a big-box retailer to the space in Watertown City Center, convincing a business to open on Arsenal Street is less of a challenge.

“I don’t have any definite plans I can release yet,” he said. “I’ll either remodel it and use the existing building or tear is down and build a new building.”

ST. LAWRENCE County

With no singular “hub,” like Jefferson County’s Watertown, St. Lawrence County is a “collection of connected but unique communities,” said Patrick J. Kelly, St. Lawrence County Industrial Development Agency CEO. Due to the massive size and scope of St. Lawrence County, the area’s growth and

JASON HUNTER | NNY BUSINESS

JoAnn Adams, Ogdensburg, left, a Sherman Elementary School teacher from 2003 to 2005, talks with Jennifer Lynch Dashnaw, Lisbon, a former student during a tour of the Sherman Inn in September. John P. Wade, Ogdensburg, purchased the former school and turned it into a bed and breakfast with plans for a community center and performing arts and events rooms.

revitalization is of a different sort.

“St. Lawrence County is so big and so diverse and there’s so much going on,” he

said. “For us, it’s the number of different activities. All these different things are going on to try to continue to create an environment where job and investment opportunity can occur.”

The county’s resources are numerous.

Mr. Kelly cited low-cost and reliable power, available land, water, minerals and the area’s colleges, the last of which play a supportive role in the economic development process, he said.

The vastness of St. Lawrence County might seem daunting, Mr. Kelly said, but it provides more room for opportunity.

“This is the kind of county where you can spend a lot of time and focus on one issue in one part of the county, and then turn around and be dealing with something completely different still in the county,” he said. “It’s interesting and enjoyable to try and get things done.”

POTSDAM AND CANTON

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www.cortelimprovement.com 18 | NNY Business | May 2015

The theme of downtown revitalization extends north into St. Lawrence County.

“Potsdam has a history and tradition of adaptive reuse, taking older buildings and renovating them for new uses,” said Fred J. Hanss, Potsdam Community Development Corporation’s executive director. “We’ve been doing this since the late 1970s.”

Mr. Hanss explained that programs like New York Main Street help to maintain the city’s architectural heritage. He said that keeping Potsdam and Canton vital is im-

C OVER S TORY portant because of the county’s two largest industries: higher education and health care.

“Revitalization is critical to make sure that we have an environment that is attractive to students, their parents, faculty and staff, and people employed in the health care fields,” he said.

Because a portion of the population leaves every year — ­ such is the nature of a college town — the process of growth is continuous. This provides opportunity for niche businesses that might not thrive in other areas of the county.

Mr. Hanss noted that St. Lawrence Valley Roasters Jernabi Coffeehouse expanded in April and 3 Bears Gluten-Free Bakery recently opened. The largest example of revitalization in the area is the Regional Arts and Interactive Learning project, he said.

The goal of this project is to bring together the St. Lawrence County Arts Council and the North Country Children’s Museum to coexist in Clarkson University’s Old Snell Hall. According to a Times article from last year, the venture is hoping for a July 2016 opening. The estimated cost for the museum’s 10 permanent exhibits is $500,000.

About 10 miles south of Potsdam, the town of Canton is also actively focused on revitalization.

“We will be applying for Main Street grand funds,” Leigh B. Rodriguez, Canton’s Director of Economic Development, said. “For façade improvements, window replacements, some residential apartments and second stories and things like that.”

A number of new businesses have recently opened in Canton in previously vacant storefronts on Main Street. Mrs. Rodriguez cited the Celtic Knot, a yarn and fabric store, The Bagelry and Buster Sports Bar, the last of which is slated to open in May. Luna, a women’s clothing boutique, also opened its doors in the past year in a vacant space that once housed a travel agency.

In the past two years, the Canton Merchants’ Association formed in “a grassroots way,” Mrs. Rodriguez said. The organization is made up primarily of downtown merchants, but plans are in the works for a name change to encourage more participation from other industries, she said.

Looking to the future of downtown Canton, Mrs. Rodriguez mentioned that the village recently received an award from the Local Foods, Local Places program.

“This will help our community in assessing how local agriculture can help with downtown revitalization,” she said.

OGDENSBURG

Perched on the bank of the St. Lawrence River, Ogdensburg has also recently seen

May 2015 | NNY Business

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C OV E R STORY revitalization efforts pay off.

“We’ve seen expansion or initial investment in the community just over the past two years,” John M. Pinkerton, the city manager, said.

He cited a handful of developments. A woman opened a consignment shop in a vacant building that had been “in bad need of repair,” he said. United Helpers Mosaic renovated a downtown building. Ogdensburg native John P. Wade bought the former Sherman Elementary School from the City School District for $20,000 in 2013 and repurposed the building into a successful bed and breakfast, with plans for a community center and performing arts and events rooms in the works. In the marina district, an old railway station houses the Freight House restaurant. Two local doctors opened their offices in an old printing operation. The list goes on.

Mr. Pinkerton explained that revitalization helps to preserve Ogdensburg’s historic downtown aesthetic.

“You keep the historical structure of the town and some of the architecture,” he said.

“The biggest thing is you’ve got local people pulling the city up by their own boot straps.

That’s what we’re trying to promote.”

In the next five years the area should see more projects, he said. These further developments should intice people, both retirees and the younger generation, to stay in the area.

“Our greatest asset is the talent of our young people,” Mr. Pinkerton said.

Meanwhile, on the north end of St. Lawrence County, the town of Massena has seen recent downtown growth.

“Currently, we’re just coming off the conclusion of the New York Main Street grant,” said Thomas G. Sullivan, Business Development Corporation for a Greater Massena executive director.

The grant made it possible for four property owners to update their buildings’ façades, which has encouraged nearby businesses to spruce up their appearance,

20 | NNY Business | May 2015

JUSTIN SORENSEN | NNY BUSINESS

From left, Grand Slam Safety partners Dave Moore, Bob Lyndaker, Bob Chamberlain and Mickey Lehman, not pictured, recently moved their business to 9793 Bridge St., Crogan, an old manufacturing building. Grand Slam Safety designs, manufactures and installs sports fencing.

Mr. Sullivan said.

Also on the horizon is the potential for rehabilitation of an old theater. A nonprofit group is working to have the building designated as a historic building, Mr. Sullivan said. If the group achieves its goal, the members plan to bring the theater back to life.

Mr. Sullivan stressed that revitalization draws people to the community. He said it’s uplifting to see that willingness of local people to invest in the area.

“We often hear that we’re in an economic downturn,” he said. “It’s good to see that people are willing to take risks to improve their properties.”

Another development is the Massena Industrial Park. The park’s largest and most active business is Curran Renewable, Mr. Sullivan said.

“To that point, we also have been working on a rail spur in the industrial park that we’re hoping to have completed sometime

in late spring or early summer,” he said.

This would enable Curran to export and import by rail, a benefit that might entice other businesses to move into the park.

Mr. Sullivan said the county’s biggest goal is attracting people to the region.

“We need people to come to the county,” he said. “And if each of us are doing a little bit to improve our community and willing to share the assets in our community, I think we all benefit.”

LEWIS COUNTY

Lewis County, an area whose economy is fueled by agriculture, energy and tourism, is going through a period of growth and revitalization, but not of the same sort as its neighboring counties. In the smaller county, the change is about unified growth.

“We have a great strength in community,” Frank J. Pace, county planner, said.

“And what we want to do is continue to build upon that and, really, it’s an everevolving process.”

Mr. Pace highlighted a few programs on the county’s radar. Last year, the chamber launched a new website and rebranded. Initiatives to build a higher education program in conjunction with Mohawk Valley Community College and SUNY Poly, along with nanotech were recently implemented. The Lewis County Planning Department hopes to expand the public transportation system.

The system now runs from various pickup points to the two colleges two days a week.

Mr. Pace said that the goal is to get this system running five days a week, to provide affordable transportation for students.

C OVER S TORY In terms of the larger downtown revitalizations the other counties are seeing, Eric J. Virkler, Lewis County Industrial Development Agency executive director, said that while there aren’t large efforts underway, “it’s all small villages in Lewis County, and downtown revitalization in all those villages is important.”

Most prominent on this list of small villages is Lowville. Mayor Donna M. Smith explained that in the past, downtown was home to vacant storefronts, but small businesses have since filled those spaces.

“It doesn’t seem as ghostly as it has in the past,” she said.

While national businesses such as the Kraft Foods are important to the county’s economy, new small businesses are equally crucial, she said.

“Everything that we spend locally in our Lewis County comes back to our Lewis County,” she explained.

Along with the central hub and county seat of Lowville, other areas are seeing revitalization as well.

Grand Slam Safety, a local company that designs, manufactures and installs sports fencing, recently opened in an old manufacturing building in Croghan.

“The prospect of a company like that growing is exciting and would be a good anchor and reuse of an existing factory in Croghan,” Mr. Virkler said.

The four partners who run the business planned to build a facility, but decided to repurpose an old building after Mr. Virkler suggested it to them, the company’s director of marketing Bob M. Chamberlain said.

“Now we can grow quite a bit and not worry about another building,” he said.

Grand Slam Safety’s operations don’t fill the whole building at the moment. For the time being, the company rents out vacant space to small local businesses.

“Over 60 people worked in this building five years ago and now it’s empty,” Mr. Chamberlain said. “A fun part of this would be if we could employ more local people.”

In March, the firm received a $50,000 grant from National Grid to upgrade the building as part of the Main Street Revitalization Program and $13,000 in rebates.

On the horizon for Lewis County is an industrial park. Mr. Virkler said there’s been talk of this in the past year. If the plan comes to fruition, the park would most likely be in Lowville due to the area’s existing infrastructure, he said.

“We’ve had quite a few discussions. We have a few locations. It’s really not narrowed down yet,” Mrs. Smith said. “It’s something that’s very crucial to our future.” n LORNA OPPEDISANO is a staff writer and editorial assistant for NNY Magazines. Contact her at loppedisano@wdt.net or 661-2381.

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S mall business

George and Franscesca Ruddy, with son Griffin, in front of Cavallario’s Steak and Seafood, Alexandria Bay. The couple took over the family restaurant March 18 and plan to reopen for the busy summer season after renovations.

Amanda morrison | NNY BUSINESS

New look, old favorites

After construction, owners hope improvements will lure regulars back

By GORDON BLOCK NNY Business

T

here’s a new look coming into place at Cavallario’s Steak and Seafood House, one without the

medieval-themed lights and props, or even the parapets adorning the front of its Church Street location.

On Monday, roofing crews could be seen cutting the last one down.

“The end of an era,” said George J.

Ruddy, who recently bought the business with his wife Francesca, daughter of previous co-owner Chuck Penn.

The Ruddys say that while the look may change, they want to continue with the service and menu that has made the

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Small business seasonal restaurant a part of their family and the village for more than five decades.

Mrs. Ruddy said she remembered sitting at the front of the restaurant as a little girl and memorizing the restaurant’s table numbers at 7 years old.

The couple met at the restaurant in 2002, and held their wedding reception at the restaurant.

“This is home,” she said.

Mr. Ruddy, who has worked in restaurants since he was 16 years old, has operated multiple restaurants in the area.

He currently co-owns the Johnston House, Riverside Drive, Clayton.

The pair are the third generation of the family to own and operate the steakhouse, established in 1962 by Frank and Concetta Cavallario.

It was sold 26 years later to Michael John Cavallario and Mr. Penn, and after 26 years of ownership, the pair sold to the Ruddys on March 18.

County property records listed the sale price as $360,000.

“We’ve got big shoes to fill,” Mrs. Ruddy said, holding the pair’s 4-monthold son and possible successor, Griffin.

Since buying the restaurant, the Ruddys have made several improvements to the 9,000 square-foot restaurant’s dining and bar area, including a new paint job, a draft system at the bar and an updated kitchen.

“It was a little busy,” Mr. Ruddy said.

“We cleaned it up.”

Outside, a new patio lounge space of about 2,000 square feet will feature multiple water features and a fire pit, and will have multiple couches.

“People are going to be surprised,” Mr. Ruddy said.

One area of the dining experience Mr. Ruddy said he hoped to improve was in its presentation.

While the menu will keep the favorites, he added the restaurant’s chef, Mario DeCastro, has had the chance to add some new dishes.

“We unclipped his wings a little bit,” Mr. Ruddy said.

The pair have about a week before their first function of the season on May 6, and they said their season is expected to run until about the end of October. n GORDON BLOCK is a Johnson Newspapers staff writer. Contact him at gblock@wdt. net or 661-2357.

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RE AL E STAT E RO UND UP

FAA proposes rules for drone flights

R

eal estate agents across the country have been waiting for the Federal Aviation Administration to release guidelines permitting the use of drones for commercial purposes, such as marketing real estate. Last month, the FAA released its proposed rules, which would allow realty professionals to use drones to aid their clients in marketing and selling properties.

Unmanned aerial vehicles, more commonly known as drones, are aircrafts without a human pilot aboard. The applications for this new technology are varied and numerous. Property managers are interested in drones’ property inspection applications while real estate agents hope to use drones to capture videos and pictures that help visualize and market clients’ residential and commercial properties.

“New drone technologies can help real estate agents market homes and properties in ways that were cost-prohibitive in the past,” said Elizabeth Miller, president of the Jefferson-Lewis Board of Realtors.

“Aerial photography and video could someday be an added value that Realtors provide for all of their clients, creating eye-catching listings that stand out to potential buyers.”

The new rules provide guidance on the various permits and registrations operators will need to obtain, when and where the drones can be used, and the requirements for reporting accidents or injuries.

It will likely take two years for the rules to be finalized and go into effect.

Some requirements included in the proposed rule are: Commercial drones’ flights would be

restricted to 500 feet in altitude, 100 mph of speed, and daylight hours.

All flights would need to be within visual line of sight of the person operating the drone.

Operators Lance Evans of commercial drones would be required to pass an aeronautical knowledge test to be issued a permit to fly, which must be renewed every two years.

This would be different from receiving a pilot’s license.

On March 24, the FAA updated its waiver policy for commercial unmanned aerial systems operations. Commercial flight is prohibited in the U.S. without a waiver from the FAA. The new policy allows operators with waivers to automatically receive a certificate of waiver or authorization for flights at or below 200 feet. Operators must comply with existing FAA requirements for UAS use, but this updated policy eliminates the need for operators to apply for a waiver for each block of airspace they wish to use.

The policy will apply to the current class of waiver-holders and to all successful petitioners between now and the time the rules for commercial UAS use are finalized. It is expected that this new policy will open up new areas of airspace to operators and their businesses.

While drones are exciting new technology, until the rules are finalized the

Jefferson-Lewis and St. Lawrence County Boards of Realtors remind sellers that real estate professionals cannot use drones to aid in the selling and marketing of properties.

“Currently, using drones to market and sell either residential or commercial property can result in heavy fines for agents,” said Korleen Spilman, president of the St. Lawrence County Board of Realtors. “But when the rules are finalized, drones will hopefully become an exciting, new tool to help sellers make their property even more attractive to buyers.”

For more information and updates, as they become available, please visit www. realtor.org/drones.

n n n

The Jefferson-Lewis Board of Realtors held a two-day strategic planning session in early March facilitated by Patrick Reilly of the New York State Association of Realtors. As other columnists have pointed out, planning ahead is important for any business and a trade association is no different.

Preceding the session, Realtor members of the association were surveyed about their thoughts on various matters. The session’s participants were Kate Dickson, Carolyn Gaebel, Les Henry, Lisa Lowe, Tara Marzano, Amanda Miller, Elizabeth Miller, Cindy Moyer, Randy Raso, Vickie Staie and me. The document that was produced will be a road map for the next two to four years. 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.

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RE A L E STATE

Home sales, prices rise in Q1 data

By TED BOOKER

T

NNY Business

he prospect of troop cuts at Fort Drum hasn’t slowed the housing market in Jefferson County.

The number of homes sold in the county during the first quarter of 2015 is up from the same period last year by 17 units, or 13 percent, from 134 to 151, according to the Jefferson-Lewis Board of Realtors. The median home price, meanwhile, climbed over the same period by $16,600, or 13 percent, from $129,800 to $146,400.

“We still had a long winter this year and the snow stuck around, but we didn’t have it coming down every other day like last year, when sales were down,” said Lance M. Evans, executive officer of the Jefferson-Lewis board.

“We’re selling more homes at better prices ...

And there is still a core group in the military who are going to be buying homes wherever they go, instead of renting.”

Of the 151 homes sold in the county during the first quarter, 45 units, or 30 percent, were purchased by military members who secured loans from the Department of Veteran Affairs, Mr. Evans said. During the first quarter of 2014,

26 | NNY Business | May 2015

49 homes, or 37 percent, were bought with VA loans. And of the 910 homes sold in 2014, 293 units, or 32 percent, were bought with VA loans.

Homes bought with VA loans “have been holding at around 30 percent,” Mr. Evans said.

“Barring major troop cuts, I think it’s going to continue to be a steady portion of our sales.”

Mr. Evans added that while the county’s median home prices fell in 2014 from 2013, he believes that strong first-quarter numbers this year indicate homes will likely continue to be sold at higher prices than last year. In 2014, he said, real estate brokers sold houses at lower prices largely because of the greater availability of new rental housing countywide. But the majority of the units are now occupied at some new rental complexes in the Watertown area, he said, such as the Beaver Meadow Apartments complex on Towne Center Drive and the 394-unit Preserve at Autumn Ridge complex on County Route 202.

“A lot of people moved in when units were brand new, but that has changed,” he said.

Even so, more rental units are slated to be built soon in the Watertown area.

The developer of the Autumn Ridge complex, Morgan Management of Pittsford, plans to start building a 359-unit townhouse complex this

year to the east of County Route 202. And the developer of the Beaver Meadows complex, COR Development of Fayetteville, will start construction this year on an apartment complex at the former Mercy Hospital site with 160 to 200 rental units, along with retail and office space.

The project is expected to be finished in 2016.

In Lewis County, statistics from the Jefferson-Lewis board show the median home sale price during the first quarter climbed from the same period last year by $18,500, or 19 percent, from $98,500 to $117,000. The number of homes sold over the same period decreased by 13 units, or 36 percent, from 36 to 23.

During the first quarter in St. Lawrence County, the median home sale price increased from the same period last year by $7,500, or 11 percent, from $68,000 to $75,500, according to the St. Lawrence County Board of Realtors. The number of homes sold over the same period increased by 8 units, or 11 percent, from 73 to 81.

The Jefferson-Lewis board has 333 Realtor members and the St. Lawrence board has 185, Mr. Evans said. n TED BOOKER is a Johnson Newspapers staff writer. Contact him at tbooker@wdt.net or 661-2371.

RE AL E STAT E / top transactions Top 10 property sales by price recorded in the Jefferson County Clerk’s Office in March 2015: $2,225,000: March 27, Town of Watertown: 1.76 acres, Summit Drive, Lundy Development & Property Management LLC, Carthage, sold to Jetris Property LLC, Watertown. $483,000: March 26, Town of Hounsfield: Campbell’s Point, Catherine H. Wehrle, Sackets Harbor, sold to Paul D. Trimper and Lynn W. Trimper, Watertown. $482,000: March 26, Village of Cape Vincent: 0.358 acres, Market Street at Gouvello Street, Watertown Savings Bank, Watertown, sold to Roxy Properties LLC, Cape Vincent. $475,000: March 18, Town of Alexandria: Two parcels, 0.337 acres, Edgewood Road, Andrew T. Walters, Camden, sold to Bruce A. Tanner and Tammy L. Tanner, Clay. $364,140: March 26, Village of Sackets Harbor: 0.395 acres, Funny Cide Drive, Sackets Meadows LLC, Latham, sold to Raymond S. Myers and Kyong N. Myers, Sackets Harbor.

Clayton, sold to Green Future Inc., Clayton. $325,500: March 19, Town of Brownville: 0.30 acres, Lot #16, Island View subdivision, Adams Cove, James Mutolo and Jill Mutolo, Dexter, sold to Sheldon Robertson and Sarach C. Rutan, Henrico, Va. $309,000: March 27, Town of Orleans: 118.18 acres, state Route 180 at County Route 3 (East Line Road), Colello Pitts Inc., Clayton, sold to Parker Henry Group LLC, Chaumont.

Top 10 property sales by price recorded in the St. Lawrence County Clerk’s Office in March 2015: $275,000: March 26, Village of Potsdam: 0.073 of an acre more or less, bounded by Market Street and Depot Street, Wenzel Properties Inc., Potsdam, sold to El Caballo Negro LLC, Norwood. $260,000: March 12, Village of Morristown: 37/100 of an acre more or less, bounded by Riverview Road, Thomas L. Strong (executor), Louise DeVillers Strong, Ogdenbsurg, sold to Manuel C. and Sally F. Palao, Morristown.

$360,000: March 13, Town of Antwerp: 5 parcels, 189.61 acres, Melvin S. Kauffman and Anna Mary Kauffman, Denver, Pa., sold to Michael S. Nuckols, Watertown.

$257,000: March 27, Town of Stockholm: 105 acres more or less, Mile Square 13, bounded by Mahoney Road, Edward G. Smith II, Winthrop, sold to Raymond B. and Stephanie J. Hill, Washington, Maine.

$360,000: March 20, Village of Alexandria Bay: 0.633 acres, Church Street at Bethune Street, Michael Cavallario and Charles Penn, Alexandria Bay, sold to GJR Family Enterprises LLC, Alexandria Bay.

$250,000: March 25, City of Ogdensburg: 0.35 of an acre more or less, bounded by City Road, City of Ogdensburg, Ogdensburg, sold to Filtran Inc., Ogdensburg.

$350,000: March 10, Village of Clayton: 51.41 acres, state Route 12, Clayton Golf Course Inc.,

$180,000: March 5, Town of DePeyster: Parcel 1) 23 acres more or less, Parcel 2) 9 20/100 acres

more or less, Parcel 3) 20 21/100 acres more or less, Parcel 4) 25 acres more or less, Parcel 5) 1 acre more or less, Parcel 6) 45 acres more or less, in Lot 143, bounded by Mud Lake, John S. and Yvette Harrison, Rensselaer Falls, sold to Daniel D. and Fannie D. Swartzentruber, Heuvelton. $168,000: March 26, Village of Massena: Unknown acres, bounded by Rosebrier Avenue, Zuleika D. Williams and Patrick D. Winans, Massena, sold to Weichert Workforce Mobility Inc., Morris Plains, N.J. $161,000: March 9, Town of Potsdam: 0.60 of an acre more or less, in Lot 70, bounded by Route 11B, Daniel E. and Sharon K. Boyette, Anchorage, Alaska, sold to Brooke Reid, Potsdam. $160,000: March 9, Town of Parishville: 10.03 acres more or less, Mile Square 34, bounded by Route 72 and Woodruff Road, Timothy A. and Carmela R. Young, Colton, sold to Justin A. and Kelly M. Mackinnon, Troy. $160,000: March 16, Town of Stockholm: Parcel 1) 124.30 acres more or less, Parcel 2) 1.59 acres more or less, Parcel 3) 88.41 acres more or less, in Lot 13 of Section 84, bounded by Nichols Road and Frary Road, John Frary, DeKalb Junction, Joanne Schnaars, Perry, Mich., Francis Frary, Adams Center, and Betty Johnson, Brookston, Ind., sold to Troy L. and Renae L. Johnson, Potsdam. $157,000: March 13, Town of DeKalb: 2.29 acres more or less, Lot 497, bounded by Welch Road, David W. Thomas III and Lisa M. Thomas, Richville, sold to Benjamin E. White, Clayton.

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20 questions

MELANIE KIMBLER-Lago | NNY BUSINESS

behind a value brand

J

effrey L. Proulx owns eight SaveA-Lot grocery stores across the north country and Southern Tier.

He employs about 180 people.

He’s been in the business for more

than 25 years, and his father was a grocer before him. One might say he has grocery business in his blood. This month, Mr. Proulx gave us a look into the industry, dispelled a few Save-A-Lot myths and shared his secrets for success.

1

NNYB: What was it like to grow up in the grocery business?

Proulx: I didn’t want to be anywhere near it, as probably any kid with their father’s business.

I worked in it all through high school. I played three sports a year, and then he had me work freight nights a couple nights a week. I got into college and decided I didn’t want any part of that. And I ended up working for a paint contractor for five summers, and I just said, “There’s no way I’ll be in the grocery business.”

As I matured and grew up a little bit, I decided, “Yeah, it’s in me.” So I decided to get into it, and I’ve really enjoyed it. It’s my twenty-sixth year, and this will be my twenty-fourth year as an owner actually.

2

NNYB: You were relatively young when you became owner. What were some valuable lessons in that experience?

Proulx: I think the biggest thing as a young manager is that you’re always trying to prove yourself. So you tend to get very defensive when people don’t agree with you. You’ve got to create a relationship where you’re actually trying to learn from these people and combine that with direction. And eventually you’ll build credibility.

But you get there and you have no credibility.

You’ve got to earn it. You’ve got to earn respect.

3

NNYB: In your industry, you have employees ranging from high school students to seasoned veterans, professionals and managers. Do you constantly have to adjust your style and ap-

28 | NNY Business | May 2015

For Save-A-Lot franchisee, focus on quality, service sets stores apart n

proach with that range of employees?

Proulx: You have to manage to your audience, but yet, you’re all after the same goal.

There’s a real balancing that goes on, and in some cases a real give and take. It’s interesting, because a lot of the interplay between the older people and these young kids sometimes is pretty neat. It’s almost like a father-son or fatherdaughter [relationship]. There gets to be some really good bonding that goes on there. But then there’s the frustration of the kids that really aren’t respectful and don’t look up to these people.

And it’s very difficult.

4

NNYB: Is recruiting and retention an issue for you?

Proulx: It’s a big issue. We actually do the math every quarter and every year, and we analyze our turnover. And then we convert that, and look back at where it starts. And it starts in the recruiting, how we screen people, how we interview people. And we’re putting a lot of emphasis on the training of our managers to do a better job with that function so we don’t have the turnover. But it’s inevitable.

5

NNYB: What sets Save-A-Lot apart in the marketplace?

Proulx: What separates my stores is the meat and produce. My dad was a meat cutter, and I’ve learned right from day one how important that is, and how to do it the right way, the right quality to offer. The service from the meat side is really how I even separate myself from many Save-A-Lots. But it just separates you from the rest [of the grocery stores]. Like Price Chopper: right now, they’re not cutting meat anymore. They’re centrally cutting their meat.

Wegmans is centrally cutting their meat.

NNYB: Is there a myth that people might find

6

they never knew about the grocery industry?

Proulx: Honestly, the myth that I would like to dispel is more about us specifically as a SaveA-Lot. Years ago, they weren’t run very well.

When we first came to the area 15 years ago, Save-A-Lot was kind of geared for the people who just didn’t have the money to spend, didn’t have the discretionary income. And I’ve worked very hard to increase the appeal of our format to everybody. Anybody who wants to save money and wants really good quality, that’s us now. It wasn’t us before. And I think that still carries with us at certain times in certain markets until people get used to us. And I think that’s kind of the case in Canton. Even though we’ve been around the area, there are still a lot of people that don’t know who we really are until they get in here. And then I hear every day, “My god, that store was nice.” They’re surprised still.

And we’ve been around here 15 years. So that myth I would like to dispel.

7

NNYB: How’d you get into the Southern Tier?

Proulx: There was a store down in Bath that had closed. A Save-A-Lot owner had run into some tough times. He had two or three stores and run out of business. P & C went through their mess. They ended up closing their P & C in Bath, which just left Tops. And I already knew what that one was doing for volume, and I immediately jumped on the horn and said, “Guys, we have to get back in Bath.” And it took us about a year and a half to get through this. We ended up going to the old P & C location. So that’s how it started. Then Hornell being a half hour away from Bathe, the town gets ahold of you, and then they court you, they find you local funding and eventually you either say yay or nay. So that’s how that developed. And we’re still looking at a couple opportunities down there.

2 0 q uestions

8

NNYB: How do you split your time between stores?

Proulx: It varies. Yesterday I was down the road, down in Central New York looking at some opportunities there. Unfortunately more of my time now is administration. I do get to the stores up here more often because I live up here.

But I pop down when I can, and I’ll spend a couple days and do a tour of them all.

9

NNYB: The grocery industry has had a reputation of being cutthroat. How is the industry today?

Proulx: It’s equally as cutthroat, and you can’t fall asleep at all for a day. We missed it about a year and a half ago; the beef commodities market was just skyrocketing. And we didn’t stay up with it. I thought I was staying with it, but it was going at a faster pace than what we were managing. And we literally tanked. So we gathered our strings together and retooled. It was pretty scary. And that was just a year and a half ago.

That’s how volatile we are. That’s how quickly I could not be here tomorrow if I said, “Oh, we’re doing pretty well. I’m going to go to the Bahamas and spend a month there.” It’s rough. But don’t you think that’s with any business?

10

NNYB: What’s the waste in the grocery industry typically like?

Proulx: The balance between your rate of sale and what you keep in inventory is a challenge every minute of the day. We have conference calls weekly. We talk about ordering. And that’s where it starts: knowing your rate of sale, knowing your business. And we have to manage that. In the meat world, if you shrink more than two to three percent, it’s excessive. Produce runs about four percent maybe. So whatever you sell, you figure four percent of that you’re unfortunately throwing away.

11

NNYB: How do you create a memorable experience for the customer?

Proulx: I define that as the culture of our store, and I preach to our management: “You need to create a culture in your store.” It’s not different in every store. It should be the same.

And that culture starts with the leaders. And I always say, “Exceed their expectations.” They’re coming to Save-A-Lot, sometimes they don’t expect a lot. They know they’re going to get a good price, and they’re going to get good meats. So they’re not expecting a lot maybe in produce, and all the sudden, they walk in and we’ve got some fresh asparagus, and they think, “Oh wow. I didn’t think Save-A-Lot had fresh asparagus.” Boom. So exceed their expectations. It’s many things, and it’s a culture. Once the cashier finishes that [transaction] well and smiles and says thank you, doesn’t start the next transaction until they’re done and completed, then we’ve done our job. And that generally gives you a return customer.

12

NNYB: How has technology impacted and changed the industry?

Proulx: Technology has helped us as retailers in accuracy. We spend a lot of time making sure our pricing is right. Back in the older days, they’d be pushing the buttons and [there was] a lot of human error there. Now, it’s one person

MELANIE KIMBLER-Lago | NNY BUSINESS

Save-A-Lot franchisee and store owner Jeffrey L. Proulx in his Canton corporate office and training center. checking files. And we can do file comparisons to see if we are off, and so forth. The state checks us twice a year, which is good for the consumer, and it keeps retailers on their toes. So we spend a lot of time with that accuracy piece, because we just have to. So that’s changed. That’s helped us. We still have scanning errors once in a while.

Other technology: cameras. I can get in to any of my stores via camera remotely. I access it and check out service levels. I’ve had stores where they look great from 8 a.m. to 4 p.m. And then they don’t schedule properly, and from 4 p.m. to close, we’re blowing it. I wouldn’t know what was going on in Norwich if I didn’t at least have some cameras. I can check service.

13

NNYB: Would you ever experiment with online ordering or an in-store shopper that loads up the cart for a customer to come pick up?

Proulx: I definitely could see that in a different format, but not in ours. That would layer a lot of cost, a lot of overhead, and we’re about stripping out all that. That’s how we get our price to our consumers. So I can see that in a Wegmans or a Price Chopper. For us, I’d like to see someday where a consumer can just come in, roll their groceries through a scanning area that somehow finds the prices of stuff and makes it that simple to ring up. They have several programs now where this is being tested but I think, if I’m not mistaken, the product has to be tagged with something special. So you’re adding cost.

And then every manufacturer would have to be on board with that. So not today, but I could see that someday, where it just speeds up that process. Maybe we don’t need as much labor, which means we can keep our costs down.

14

NNYB: How do you compete with a store on the scale of Walmart?

Proulx: There’s several ways that we have a

The Jeffrey L. Proulx file AGE: 50 JOB: Franchisee, owner, eight Save-A-Lot grocery stores FAMILY: Wife, Melissa; children, Joshua, 17, Cameron, 14, Trista, 11, and Andrew, 9 HOMETOWN: Canton EDUCATION: Bachelor’s degree in business administration, Canisius College PROFESSIONAL: Sherwin-Williams Company; Jubilee grocery store; MBT Bank manager; Owner Save-A-Lot Markets BEST BUSINESS BOOK YOU’VE READ AND WOULD RECOMMEND: “The One Minute Manager” by Kenneth Blanchard lot of success. The first piece goes back to the meat cutting. They don’t cut meat. We literally have two full-time meat cutters in every store, so we handle everything. It’s fresher. If you look at anything in the Walmart meat case, they might have something that’s good for 11 days, because it’s packed with high oxygen packing. We’ll never have something in our case more than four days. It just doesn’t work.

And our goal is to turn everything within about two days. Another thing is service. Walmart’s service is horrific. The people are miserable.

Their culture struggles. They’re battling this, as you can imagine. And then produce. You walk into their produce department, and it’s generally not handled really well. Their prices aren’t bad. We do price checks every week, nationally. We’re cheaper. Our service, I think, is better. Our culture’s better. We’re more May 2015 | NNY Business

| 29

20 questions convenient. If you want a gallon of milk at Walmart, it’s a 200,000-square-foot store, and a lot of people don’t like that. We offer price, convenience and we do a much better job with the meat and produce.

15

NNYB: Who is one of your greatest mentors?

Proulx: There’s no question it’s my father for obvious reasons: he did what I’m doing.

I would have liked more time on the job with dad. He cut my cord pretty quickly and went.

He had done it for 51 years and was like, “Thank God. Finally. Someone wants to do this.” I would have liked more time with him, but he’s been a great resource. The business, oddly enough, really hasn’t changed much

from when he started to today.

16

NNYB: What’s the most important thing that he taught you?

Proulx: Honesty. Don’t ever cheat your customer. It’ll bite you every time. And he said just be honest with your customers. It really is about having integrity and being honest. Just tell the truth and give your customer an honest day’s work.

17

NNYB: What does your father think of all this now?

Proulx: He’s a very humble person. And he’ll tell other people before he’ll tell me what he thinks. But when you hear him talk to other

people, he’s pretty proud. He said to me, “I couldn’t do what you do. I had one store and I tried two at one time. I don’t know how you sleep.” It’s just a different world and people are built differently. I think he really enjoys seeing this growth and he’s just sitting back going, “I’m glad it’s not me.”

18

NNYB: Taking risk is a big part of the grocery industry. How do you manage that risk?

Proulx: I think it starts with the type of individual you are. A lot of people envision working for themselves and having their own business. I think we all at one time or another wish we could do that. Fundamentally speaking, you just have to make sure first it’s something that you know what you’re doing.

It’s understanding your limits. It’s understanding and sticking with what you know. And then it’s also understanding that most businesses fail within the first two years, and it’s because they’re under-capitalized, generally.

19

NNYB: Talk about staff and managing people.

When you are successful, do you think it’s important to celebrate that success?

Proulx: Well, first of all, you’re never going to be successful unless you have good people to celebrate with. And the way you celebrate that, there are so many different ways to do it. We probably don’t do it enough, and most businesses don’t do a good job with it. But what we do a really good job with, and what I have to instill in all my managers, is that we respect the people we’re working with. And you respect who they are, whether it’s a young lady who’s just starting out in a cash position, or one of your seasoned veterans.

20

NNYB: What advice would you offer to someone who is starting out?

151 Mullin Street Watertown, NY 13601

Proulx: If I had somebody who wanted to do what I do, I think the best advice I could give them is just start out in a store and see if you like this business first. And see if you have the aptitude for this type of business or whatever it is you’re thinking about doing. Don’t just go out and try to be “the guy.” Learn it. Learn it from the bottom up. If my kids ever get into it, I will ask them to start out on the register. I will ask them to stock groceries. I will ask them to cut meat. I will ask them to do produce. And then I’ll ask them to go to college first, even though I don’t think that’s a prerequisite. I just think it helps the maturity of a kid. College isn’t for everybody, but I feel there’s a real social piece for that. Go to college first, and then come in. You’re going to work for a while from the ground up. As far as business: just do something you like to do. Don’t do something somebody else thinks you should do. But if you’re going to get in business, you’ve got to really be ready to live it. It encompasses you. It affects your family.

It affects your kids. And if you don’t balance that, it’s not a good road. I’m not that guy, even though I work a lot of hours. I really am conscious of trying to balance those moments when I can really infuse myself in the family.

— Interview by Ken Eysaman. Edited for length and clarity to fit this space.

30 | NNY Business | May 2015

May 2015 | NNY Business

| 31

EC ON OMICALLY S PEAKIN G

North country is poised for growth

T

he north country is home to many successful businesses, and each day new businesses are born. They are born at the dinner table or in the college lab or on the back of a napkin. Several programs and services are available to assist start-up or existing businesses.

In terms of financial resources, the north country is blessed with an abundance of low interest, long-term loan programs. While grants are harder to come by, low interest loan programs are readily available to help businesses with capital improvements, acquisition of equipment or inventory, and working capital. Many of these programs are regional, which means they are available across county lines and the benefits are felt across the north country.

The North Country Alliance began in 1988 as a nonprofit community development organization comprised of industrial and government agencies from across Jefferson, Lewis, St. Lawrence, Clinton, Essex and Franklin counties. Today, it includes membership from across all business sectors and mirrors the footprint of the North Country Regional Economic Development Council. It serves as a voice for the region’s businesses and provides financial resources to grow firms and create jobs. Its most valuable resource is a regional revolving loan fund.

The fund is capitalized with $6.6 million from New York State and the U.S. Department of Agriculture. It has made more than 150 loans to create or retain 4,300 jobs. It has lent $13.6 million and leveraged an additional $123 million in investment to businesses.

Money is available to assist eligible small businesses. Visit northcountryalliance.org to learn more.

The North Country Economic Development Fund is one our region’s most recently established low interest loan programs. It was

established by the New York Power Authority in partnership with the Development Authority of the North Country, North Country Alliance, and Empire State Development. It was capitalized with $10 million Michelle Capone received from Alcoa by the Power Authority as part of its modernization initiative.

The program is available to eligible applicants in St. Lawrence, Clinton, Franklin, Essex, Jefferson, Lewis, Hamilton, Herkimer counties and the portion of the Akwesasne Mohawk Reservation located within New York State.

Eligible applicants include for-profit businesses and not-for-profit corporations. Business improvement districts may be eligible for community revitalization projects.

Eligible projects include manufacturing, agribusinesses, clean/green bio-tech businesses, assemblers, wholesale distributors and warehouses. Retail, marketdriven projects will be considered with the following requirements: 1) tourism-related projects that will attract significant visitors 2) projects that without the help of the fund would locate jobs outside of the state and 3) projects that make available goods and services to the community that, not for the loan, would not be reasonably accessible to the residents of the community where the project would be located.

Visit danc.org/operations/regional-development/north-country-economic-development-fund to learn more.

In recent years, the North Country Regional Economic Development Council

has awarded money to the Development Authority of the North Country to implement regional revolving loan funds for targeted sectors. The first program created was the North Country Transformational Community Tourism Fund. Created in 2013 with $2 million, the program furthers tourism-related development projects that will have a transformative impact on north country communities. While the program targets renovations and new construction of lodging units, it also assists projects that have a direct impact on tourism to a region.

Projects funded include the Northwoods Inn, Lake Placid, Lapland Lake Nordic Ski Resort, Northville, and Swan Bay Development, Alexandria Bay. A second program is the North Country Value-Added Agriculture Fund. This program was created in 2014 with $1 million to improve productivity and crop yields to increase the availability of value-added agriculture products to markets. Individuals, farms or small businesses having 100 or fewer employees located in Jefferson, Lewis, St. Lawrence, Franklin, Essex, Clinton and Hamilton counties are eligible to apply. Visit danc. org/operations/community-development/ business-development to learn more.

These are but a few of many regional programs for local businesses. Organizations like the Small Business Development Centers, county industrial development agencies, chambers of commerce, North Country Alliance, and Development Authority of the North Country can identify programs that might meet their financial needs. The north country is open and ready for your business to grow. n MICHELLE L. CAPONE is director of regional development for the Watertown-based Development Authority of the North Country.

Contact her at mcapone@danc.org.

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N O N P RO FIT S T O D AY

Volunteers add value to nonprofits

I

n the world of philanthropy, there is a desire to find the alignment of passion, purpose and planning, always recognizing that giving back includes time, talent and treasure, all working together for greater impact. One of the most competitive advantages nonprofit organizations hold is the availability of volunteers.

Our region’s charitable organizations have both the need and privilege of attracting individuals who, like donors, make a conscious choice to support and advance an organization’s work and mission. Nearly 63 million Americans volunteered at least once during 2014. For many nonprofits, operating without volunteers would be impossible.

Northern New York has always been blessed with dedicated, committed, talented and caring volunteers. You may remember that today’s Volunteer Transportation Center started as the Volunteer Center in the late 1980’s. At that time, community leaders were looking for ways to formalize, encourage and nurture opportunities to help others in ways that were mutually beneficial, passiondriven and talent-aligned. At the same time, thought was being given to the most effective volunteer coordination practices as well as ways to embed leadership training, effective governance and board development.

Today, the north country’s schools, churches, museums, libraries, health care institutions, arts and cultural organizations, and a wide variety of community betterment and human service entities benefit every day from the expertise, talent and passion of individuals who recognize the multi-dimensional benefits of volunteering.

While celebrating the great tradition and spirit and volunteerism our region has demonstrated, we must always be assessing the ways generational, demographic and societal trends will affect volunteerism, community

engagement, and philanthropy.

During his recent visit to Fort Drum, Defense Secretary Ashton Carter made this type of “looking around the corner” thinking an important part of his remarks.

“I need to be Rande Richardson thinking ahead a generation, two generations, and make sure that our country continues to have what you represent, which is the best of the best in every generation,” he said. “Without change, you can’t keep up in today’s world. And the only way to change is to be open, to be looking around trying to find new ideas and ways that we can keep the wonderful traditions that we have of one of our country’s oldest and most respected institutions, but also change so that we’re relevant; that we’re attractive; that we’re exciting to you and to the generations that come after you.”

All the same rules apply to nonprofit organizations whose most valuable resources are often human. I believe that future generations and today’s young professionals may seek out skills-based volunteer opportunities that allow the ability to create better communities, building connections, while also finetuning skills and developing and deepening lifelong friendships. This type of thinking provides additional options from traditional, unspecialized volunteering to more highly specialized activities. There may also be ways to integrate mentorship, internship and job shadowing access. For organizations, there is the added benefit of the expanded base of donors, advocates and supporters.

There are encouraging signs on the horizon. A recent survey of young adults found that nearly 50 percent volunteered at least once a month and nearly 40 percent considered giving time to charity a “measure of success.” Over the past five years, the Northern New York Community Foundation’s Youth Philanthropy initiative has affirmed that investing resources to nurture, grow and develop these inclinations is a worthwhile endeavor. It has also reminded us of the value of the intergenerational sharing of knowledge and experiences, which will impact our communities now and in the future.

There is no question, and numerous studies confirm it: the mission of an organization and the way it serves local community needs rank as the top two motivators for volunteers.

The ability to use a specific skill set ranks a close third. As with all things transformative, passion is the greatest and most sustainable long-term motivator.

The nonprofit sector talks often about fulfilling basic human needs. Those needs include the belonging, feeling valued, and being able to contribute to something greater than oneself. Most volunteers will attest to the great satisfaction and fulfillment they experience through volunteering. Part of the reason nonprofit work is so unique is that its work is often accomplished not because of mandate, but because the will and desire of citizens to make it happen. The same beauty applies to volunteering. Follow your passion while making a difference. When looked at through that lens, there is a realization that the work of nonprofits is so much more than charity. 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. His column appears every other month in NNY Business.

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commerce corner

Improve your best assets, quality “Opportunity is missed by most people because it is dressed in overalls and looks like work.”

— Thomas Edison

E

ver have that employee who has so much potential but puts forth little effort? Or do they fail to recognize their own abilities?

We all have employees who make us wonder what motivates them to want more, to be successful and to be part of a team that strives for excellence. According to Forbes magazine, an employee’s relationship with their direct supervisor is the single most important factor that influences engagement and ultimately falls on the shoulders of the manager to improve the motivation of the employee.

Micromanaging versus managing This can be a fine line to walk as a manager. Employees need to be allowed some freedom to be creative and know that they’re valued through the work they complete. However, from a supervisor’s perspective this can be difficult because they are ultimately responsible for the outcomes produced in a department. From an employee’s viewpoint, having someone watch over their shoulder can make them feel incapable or demoralized.

HOW TO AVOID Micromanaging and ensure maximum quality of work A supervisor may opt to hold one-on-one weekly meetings to meet with employees that may be direct reports. This is a great non-threatening way to discuss projects and address questions, request support, troubleshoot and share information that would prevent a supervisor from being blindsided or even disappointed by a failure to produce a product on time or as agreed upon.

In many situations, supervisors are often department heads of several individuals or in a small business, the executive director may be the main supervisor. Therefore, a weekly staff Lynn Pietroski meeting of all employees may also be beneficial. Everyone in the organization should be working toward the same common goal and mission. And everyone should be working toward the same mission and representing the agency in a positive manner. This type of atmosphere leads to great teamwork.

In most any environments, it’s best to have an open door policy. It values an employee’s ideas and concerns and may be just an avenue to be able to hear from their supervisor that what they did was great.

However, all employees must be prepared for constructive criticism.

In all situations, it’s important to recognize good work. However, there are some situations when rewarding individuals who don’t meet deadlines or expectations are not uncommon. This often separates the leaders from those who are there to collect a paycheck. The silver lining could lead to an employee wanting to strive to be the one who meets the deadlines or excels in their position. It’s important to remember our Gen Ys who are starting to saturate the workforce and need that constant recognition. As a supervisor that can be difficult and almost draining at times.

challenge employees to sink or swim I believe that challenging employees often separates leaders from those who are merely working a job. This becomes evident as leaders take pride in their work and the work of others within the organization. So take the time to focus on your leaders and challenge their skills, their ability to lead and ability to think outside the box and see the bigger picture. Never let an employee bring you a problem without a solution. This tells a supervisor a lot about an individual. Some employees may need some guidance in understanding that most, if not all problems or barriers, have a solution. With time, the solutions become better and the problems become smaller; all because they were empowered to think outside what is considered the norm.

5 ways to motivate employees

n Be a good communicator n Be an example — never ask an em-

ployee to do something you would not do n Empower employees whenever possible. It develops buy-in and creates value n When applicable provide opportunities for advancement. As a leader, you must realize this cannot always be done within the current organization. However, a true leader focuses on overall growth of individual not just the organization. n When applicable and within reason, 12 Month / 12,000 Mile Lim provide incentives. This does not 7 Yearalways / 100,000 Mile Limit have to be financial incentives-think out1 Year Roadside Assistance side the box.

160 Point Quality Assurance Special Rates For n Lynn Pietroski is president and Financing CEO of the Greater Watertown North Country Chamber of Commerce. Contact her at ceo@watertownny. com. Her column appears monthly.

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A few ideas to ponder for our future

I

n March, a group of agency and private businessmen participated in a “Big Ideas” session hosted by the North Country Regional Economic Development Council. The purpose was to generate ideas that will allow us to compete with regions across the state for economic development money. Gov. Andrew M. Cuomo proposed a competition in which a region could land $500 millon in taxpayer money to grow the local economy and create jobs. As I sat with other “big thinkers” I saw even more the potential for agriculture to help our region’s economy. Here are some “ideas” to ponder.

Dairy manufacturing — Our region is a dairy epicenter in the United States. Combined, Jefferson, Lewis and St. Lawrence counties produced 1.82 billion pounds of milk in 2010. No other three contiguous counties in New York State came close to that total. Another dairy manufacturer in our region, preferably a cheese manufacturer, will be beneficial.

OUR LAND — We must become sensitive to the land barrier our farms face. Good agricultural land is hard to come by. Every effort must be made to carefully manage our residential development to minimize its impact on our tax revenue generating farms.

EQUIPMENT manufacturing — With the strength of our agricultural industry, is there potential to attract ag equipment manufacturers? Is there opportunity to bring in high-tech equipment companies, such as one that manufactures unmanned aerial vehicles? Our proximity to Fort Drum, and the highly skilled soldiers who work there provides a potential labor force for high-tech agricultural manufacturers.

MEAT PROCESSING — With 300,000 large livestock within 100 miles of Watertown and a growing number of hogs, goats, sheep and poultry, we can support increases in custom-

and USDAinspected meat processing facilities. Building capacity to harvest a larger number of animals than we do locally may benefit our dairy farms, whose animals go into meat production after their Jay Matteson milk production ends. Farms may turn their bull calves into better profit centers if we provide the capacity for them to raise and then harvest the livestock locally. Could we build a new meat processing facility with a classroom area where an educational institution like Jefferson Community College, or BOCES, could come to train culinary arts students on meat processing and value added food production? Would this support growth of ancillary business? renewable energy — Cow power continues to develop as a resource for farms and the community. Every anaerobic digester installed on a farm is a win for the farm, and win for the community. Let’s invest our public monies here, benefiting our farms by producing their own electricity and better managing their nutrient stream. The public benefits because there is less demand on the power grid, reduced odors from farms, and it’s a power plant that “Moos”. In addition to cow power, photo-voltaic panels on barns, private farm windmills, and growing crops for energy production such as shrub willow or grass potentially reduce our demand for foreign oil and are renewable. power and broadband — We should support financing the installation of 3-phase electrical power to the outlying farms and

business that need it to grow. Lack of high speed internet has become a barrier to success for our farms and agribusinesses in outlying areas. It is time for us to invest in these infrastructure projects.

AG RESOURCE FARM — Could and should an educational institution such as Jefferson Community College or BOCES own a resource farm? Is there a need for the purchase of a small 100-acre farm to train students about agriculture, animal care, equipment technology and use, food science and culinary arts? Can this farm, or maybe the new residential facilities at Jefferson Community College, be used to house summer interns we attract to work on our farms, bringing their insight to our farms and hopefully attracting them here after college to strengthen our agricultural workforce?

AG MARKETING — Are students available from Jefferson Community College, BOCES or other schools who can help build and maintain websites that are critical to bringing people into our wineries and craft beverage manufacturers? How can we tap this resource to better market our areas agricultural attractions to the rest of the World?

In return, do these students become young agricultural entrepreneurs? Will they stay here and build their own businesses helping our agricultural businesses?

We work on some of the ideas above every day. Others are somewhat “pie in the sky”, hoping we can find the right resource, or the best nuance, that will bring the idea closer to reality. The most important task is to continue asking, how can we help our businesses improve our economy? n Jay M. Matteson is agricultural coordinator for the Jefferson County Local Development Corp. He is a lifelong Northern New York resident who lives in Lorraine. Contact him at coordinator@comefarmwithus.com. His column appears monthly in NNY Business.

May 2015 | NNY Business

| 35

business tech bytes

Vendor management made easy

L

arge, small or in-between, an increasingly common thread among all organizations is information technology vendor management. Vendor management finds most in the role of customer as your business navigates your numerous IT provider offerings, while trying to integrate the best functions and features from each so your business operates effortlessly.

The latest trends are beginning to support the theory that organizations are increasingly leaning toward purchasing as much as they can from a single vendor in hopes of saving lost productivity to system integration issues. In your organization you can avoid this by seeking to add new IT partners, not just vendors. You will find that a true IT partner will understand your organization’s goals and will share successes, while working to correct any flaws so your IT investment functions as sold as intended in your environment.

Be leery of vendors who seem too often to protect their own interests and software offerings that are difficult to integrate with other product lines. The best approach is to partner with IT vendors who work hard alongside you to ensure that their clients have the best user experience and optimum outcomes.

Organizations effective in multi-vendor environments minimize integration impediments through coordinating collaboration efforts between internal users for buy-in while developing an environment that cultivates process improvement and project ownership. Successful multi-tiered IT vendor management begins with the critical choice of a strong primary vendor that can serve as the central “hub” for

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your IT environment. If this is not challenging enough, you will need to augment this hub with the appropriate strategic “spokes” to achieve optimal results and a successful Jill Van Hoesen execution.

While each organization has unique business requirements there are some common questions to evaluate when considering IT vendor partnerships. Have you talked with others in your business networks who presently use this product?

Have you reached out to others in this product’s user community? Now is the time to seek advice from your industry peers on their experiences with specific vendors you are researching.

If feasible, conduct on-site visits to present customers; to both those suggested by the vendor and especially those that are not. If on-site visits are cost prohibitive remember that in 2015 everyone is only an email or phone call away. Plan your questions and set the dialog looking for candid and unscripted answers and insights into the experiences this product offers. Be sure to ask the same questions of each reference, so you are continually comparing apples to apples.

Remember, IT costs money and you can’t do everything, but you can do something. What are your most important goals? Do you fully understand the value

of your IT Investments? Have you done your research and completed a comparative benefit analysis between potential vendors? This can be used to identify the impact this vendor’s IT system can provide to your business. Go beyond the conventional ROI with measurement and assessment of the intangibles, like employee morale or the delay of other projects during the conversion cycle. Engage all your affected stakeholders to ensure you collect reliable and relevant metrics that ensure the value of this investment as previously defined by them. You need buy-in from all participants in your own organization; change will not be possible without everyone pulling in the same direction. Coordinated efforts will ensure that your employees and your enterprise are moving in the same direction, at the same time and at the same pace.

Once you have chosen your IT vendor you still must be diligent to ensure you get the most from your IT investments.

Do you have assigned personnel to test against specific guidelines in order to track progress? Have you established baselines to regularly measure against?

This is critical to show your headway against previously established goals for implementation. Now is the time to identify any missteps and to make needed adjustments, but most importantly, celebrate incremental successes among stakeholders. Your business could not have done it without the concerted effort of all. n Jill Van Hoesen is chief information officer for Johnson Newspapers and a 25-year IT veteran. Contact her at jvanhoesen@wdt.net.

Her column appears monthly in NNY Business.

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small business success

Take some time to renew yourself

I

n my last column I talked about making resolutions in our personal and business lives to improve our productivity and organization; I wrote about de-cluttering and prioritizing. That’s still going really well.

This month I said I’d tell you about my third resolution: trying new things.

Why should you try new things? Perhaps you’ve noticed with your business that sales have gotten static or even fallen off a bit. Maybe your marketing efforts have gotten a bit stale along the way.

Perhaps you need to get out of your rut, change up your basic life perspectives, and stretch yourself a bit.

So, I did in fact go downhill skiing for the first time in more than 10 years. Yes, I was nervous. I really didn’t want to end up in the emergency room. My son prepared me by making sure I had speedy, freshly sharpened and waxed skis — a mixed blessing, in my opinion. When I set off for the Dry Hill chair lift, my goal was to do just one run and survive it. It went so well, I took another five runs.

It’s the same with starting a business or making changes in your business. Sure, it can be scary and risky; the key is to be prepared in advance and to have a goal in mind so you can see and judge how things are going.

At the Small Business Development Center, I’ve decided my next “new thing” is expanding our social media presence by creating a company LinkedIn page and a Twitter feed. These aren’t tools I use personally, but as an organization that

serves small businesses we feel we need to broaden our Internet presence to make sure local entrepreneurs are aware of us and how we can help them.

While this Sarah O’Connell isn’t as scary as flying down a ski hill, it still takes some research and planning to make sure that it is done well and looks professional. This is one reason

make sure all your important keywords appear in the text so the search engines will pick them up. If you have other social media platforms, include those links.

Make sure you create a website that will work well on a mobile device.

According to a Nielsen survey, in 2014 more than 86 percent of 25- to 34-yearolds own smartphones and in the most senior group, 65 and older, 46.3 percent own a smartphone. Ownership is pretty evenly divided between men and women. So whoever your target market is, the chances are that they are going to be looking for you on their Android or iPhone device.

Put your Web address on every other piece of advertising material you have: brochures, business cards, car signage, emails, etc.

Finally, use the analytic tools available to see how your website is working, in terms of visits, clickthroughs to links or other pages, etc.

Your goal is to increase visitation to your website, and the analytics will let you see what’s working and what’s not.

So, another new thing I’m trying? Cooking. I’m trying out a new recipe on my son every week or two. So far I’ve managed minestrone, bruschetta and pot pies with no trips to the emergency room either.

Why should you try new things? Perhaps you’ve noticed with your business that sales have gotten static or even fallen off a bit.

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why many north country businesses haven’t yet pushed off the social media hill. Business owners are worried about the work, cost and time it may involve.

But while LinkedIn and Twitter may or may not be appropriate for your particular business, there are still a few basic steps — remember the snowplow stance in skiing — that you need to take.

Create a website. It doesn’t have to be expensive, it doesn’t have to be fancy, but it does have to look professional and it does have to include your product or service, your location/service area, your hours if you have an office or shop and a way to contact you. Photos are good, but

n SARAH O’CONNELL is a certified business advisor with the New York State Small Business Development Center at Jefferson Community College. She is a former small business owner and lifelong Northern New York resident. Contact her at soconnell@sunyjefferson.edu. Her column appears bi-monthly in NNY Business.

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COMMUNITY / BUSINESS CALENDAR

Alexandria Bay Saturday, May 23

n Grape Blossom Festival, noon to 8 p.m., Thousand Islands Winery, 43298 Seaway Ave. Includes wine, beer, local vendors, food, hay rides and live music. Free admission.

Information: Thousand Islands Winery, 4829306, info@thousandislandswinery.com, thousandislandswinery.com.

Carthage Ongoing Wednesdays

n Cruise In Classic Auto Show, 6 to 8 p.m., Turning Point Park. Includes food, prizes, music and raffle. Proceeds to benefit Carthage American Legion Scholarship Fund. Slated to run through Aug. 26. Information: Richard Simmons, 493-2787.

Thursday, May 21

n Business After Hours, 5 to 7 p.m., 110 School St. Hosted by Fuller Insurance, Chris Lorence Public Relations and Theresa Lorence Music. Cost: $5; preregistered, $4.

Information/register: Carthage Chamber of Commerce, 493-3590.

Clayton Ongoing second and fourth Mondays monthly

n Lion’s Club meeting, 6:30 to 8 p.m., Thousand Islands Emergency Rescue Service, 100 Union St. Information: Lion’s Club, 6865268 or claytonlions@gmail.com.

Friday, June 12

n Thousand Islands Land Trust’s Annual Community Picnic, 5:30 to 7:30 p.m., Zenda Farms Preserve, 38973 Zenda Farm Road. Sponsored by 1000 Islands River Rat Cheese and RBC Wealth Management.

Includes exhibits from TILT’s conservation and community partners, petting zoo, pony rides, live music, food and raffles. Advance reservations appreciated. Cost: $15; member, $12; children 11 and under, free. Information/reservations: TILT, 686-5345 or events@tilandtrust.org.

38 | NNY Business | May 2015

Saturday, June 13

n 1000 Islands Family Day, 11 a.m. to 3 p.m., Antique Boat Museum, 750 Mary St. Annual event includes tours, discount boat rides, arts and crafts, games and more.

Free admission. Information: Michael Folsom, michaelfolsom@abm.org; museum, 686-4104 or abm.org.

Thursday, June 18

n Chris Murray Photography exhibition opening reception, 5 to 7 p.m., Thousand Islands Arts Center, 314 John St. Aims to raise money for Save the River. Information: arts center, 686-4123.

Croghan Saturday, June 13

n Jim Scanlon Citizen of the Year Banquet, 6 p.m., American Legion Post 1663, 9833 State Route 812. Social hour scheduled for 6 p.m.; dinner, 7 p.m. Croghan Lions Club plans to recognize one adult and one student as “Citizens of the Year.” Cost: $15.

Register by Monday, June 1 with Marian Opela, 376-8639, or Pat Ford, psawdust@ frontiernet.net.

Fort Drum Monday, June 1 & Tuesday, June 2

antique & car show, parade at 7 p.m. Friday, Main Street, judged show at 9 a.m.

Saturday, Hiltebrant Recreation Center, 225 North St. Trophies and cash prizes awarded at 3p.m. Saturday. Sponsored by the Central Adirondack Association. Information: CAA, 369-6983.

Potsdam Friday, June 26

n St. Lawrence County Arts Council Member Show, 5 to 7 p.m., Gibson Gallery, SUNY Potsdam, 44 Pierrepont Ave. Show scheduled to run through Friday, July 31.

Summer hours are 1 to 4 p.m. Monday through Friday or by appointment. Information: SLC Arts, 265-6860.

Syracuse First Wednesday OF each month

n Business Innovation Days meeting, 9 a.m. to 5 p.m., The Technology Garden, 235 Harrison St. Opportunity for small businesses and entrepreneurs to meet one-on-one with SBDC counselor. Appointment required. Information/register: Onondaga Community College SBDC, 498-6070 or SBDC@sunyocc.edu.

n Boots 2 Business, 8 a.m. to 4 p.m. each day, Clark Hall, Mount Belvedere Blvd.

Course for soldiers transitioning out of service includes market research, licensing, funding and operating a business.

DOL ACAP briefing required. Information: ACAP, 772-3434.

First Friday each month

Thursday, June 11

n SyracuseFirst New Economy Summit, 8 a.m. to noon, Genesee Grande Hotel, 1060 E. Genesee St. Aims to teach ZingTrain’s Pathways to Extraordinary Customer Service.

Celebrates winners of AmeriCU Local Business Visionary Award and Sparky Mortimer Humanitarian Award. Lunch reservations required by Friday, May 29. Cost: member, $65; member with lunch, $80; nonmember, $80; nonmember with lunch, $95. Information: CenterState CEO, 470-1800, CEO@

n Build Your Own Business, 9:30 to 11:30 a.m., ACS Building. Course includes market research, licensing, funding and operating.

Information: ACS, 772-9611.

Old Forge Friday, June 19 & Saturday, June 20

n Eighteenth annual Father’s Day weekend

n Toolkit Day with SCORE, by appointment, The Technology Garden, 235 Harrison St. Counselors provide mentoring to business owners. Information/register: Lynn Hughes, 579-2862 or Lynn@TheTechGarden.com.

Wednesday, June 3

centerstateceo.com or centerstateceo.com.

n Linkedin 101, 8:30 to 9:30 a.m., The Tech Garden, 235 Harrison St. Aims to teach purpose of LinkedIn, personal profile formatting, strategies for connecting, posts and updates and groups and communities. Presented by Tony Kershaw, The Tech Garden’s innovation specialist. Cost: member, $10; nonmember, $20. Information: CenterState CEO, 470-1800, CEO@ centerstateceo.com or centerstateceo.com.

Friday, June 5 n Liverpool Chamber of Commerce Annual Golf and Networking Event, 9 a.m., Radisson Greens, 8055 Potter Road, Baldwinsville. Registration slated for 9 a.m., event at 10 a.m. Features vendors, prizes, contests, music and more. Cost: $95, includes fees, cart, food/beverage on the course, vendor fair and dinner. Register online or by mail.

Information: liverpoolchamber.com/m/ events/view/Liverpool-Golf-Outing.

Thursday, June 11

n Annual CNY Best Learning and Performance awards, 5 to 8 p.m., DoubleTree

by Hilton, 6301 Route 298, East Syracuse.

Reception slated for 5 to 6 p.m., dinner and awards ceremony from 6 to 8 p.m. Derrick Suehs, Crouse Hospital’s Chief Quality Officer, plans to speak. Cost: $75. Information: CNY ASTD, 546-2783, info@cnyastd.org or cnyastd.org. n Business After Hours at Dave and Busters, 5:00 to 6:30 p.m., Dave and Buster’s, Destiny USA, 306 Hiawatha Blvd.

W. Includes complimentary appetizer buffet, happy hour prices and Power Card.

Cost: member, $10; nonmember, $20.

Information: Karen DeJoseph, 470-1997 or kdejoseph@centerstateceo.com.

Thursday, June 18

n Speed Networking, 8:00 to 10:00 a.m., CXtec, 5404 S. Bay Road. Continental breakfast provided by Cafe Kubal. Preregistration required. Cost: member, $10;

Thursday, June 25 n Financial and Business Executive Awards, 11 a.m. to 2 p.m., SRC Arena, Onondaga Community College, 4585 W. Seneca Turnpike. Honorees recognized for outstanding performance as corporate, financial and business stewards. Open to the public. Cost: $55. Information: Joyl Clance, 579-3917 or jclance@bizeventz.com.

Watertown First, third & fifth Monday each month

n Watertown Toastmasters Club, 7 p.m., Jefferson County BOCES- Charles H. Bohlen Technical Center Administration Building, Conference Room A, 20104 State Route 3.

Meetings open to anyone interested in improving community and leadership skills. Information: watertown.toastmastersclubs.org.

Tuesdays, ongoing

n Watertown Evening Rotary meeting, 5:30 p.m., Paddock Club, 1 Public Square.

Information: 786-6633 or watertowneve ningrotary.org. n BNI-NNY Partners for Success meeting, 7:30 p.m., Comfort Inn, 110 Commerce Park Drive. Networking group. Information: President Jessica Page, 786-5032; bniupstateny.com.

Sunday, May 24

n Memorial Day Salute, noon to 4 p.m., Hilton Garden Inn, 1290 Arsenal St. Includes live music by Spur Crazy, balloon release and chicken barbecue. Portion of proceeds to benefit AUSA’s Wounded Solider Program. Cost: $15. Information: Hilton Garden Inn, 788-1234.

Wednesday, June 3

n Annual NCHRA Conference, 7:30 a.m. to 4:30 p.m., Hilton Garden Inn, 1290 Arsenal St. Theme is “achieving HR excellence.” Reg-

istration, breakfast and networking scheduled for 7:30 a.m.; conference, 8 a.m. Cost: member, $75; nonmember, $125. Registration form available online. Information: Kathy De Forge, kdeforge@jainsusa.com or 755-4423.

Saturday, June 6

n Strongest Warrior Competition. 10 a.m. to 4 p.m., Alex T. Duffy Fairgrounds, 970 Coffeen St. Presented by Fort Drum chapter of the National Association of the 10th Mountain Division. Annual event raises money for Wounded Warrior Fund and College Fund.

Jeramy Freeman to speak. Information: strongestwarriorcompetition.com or strongestwarriorcomp@gmail.com.

Friday, June 12

n Jefferson Leadership Institute class of 2015 graduation luncheon, 11:30 a.m. to 1:30 p.m., Ramada Watertown, 21000 state Route 3. Cost: $22; JLI alumni, $18.

Information: Michelle Carpenter, events@ watertownny.com.

Thursday, June 18

n Business after hours, 5 to 7 p.m., Center for Sight, 1815 State St. Sponsored by Center for Sight. Ages 21 and older. Cost: registered member, $10; nonmember, $15; unregistered members at the door, $12. Information: Michelle Carpenter, 788-4400 or events@watertownny.com.

Saturday, June 20

n Eleventh annual Mulligans for Kids golf tournament, Willowbrook Golf Club, 25075 state Route 37. Cosponsored by The Sackets Boathouse Restaurant & Bar. To benefit Youth Court of Jefferson County.

Time to be determined. Cost: team of four, $260. Information: Resolution Center of Jefferson & Lewis Counties, 836-8502 or tmiller@resolution-center.net.

 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 www. facebook.com/NNYBusiness or www.nny bizmag.com for events calendar updates.

COMMUNITY / BUSINESS CALENDAR

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| 39

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Jessica Matthews and Kevin Wells, both of Walgreens.

From left, Ashley Felger and Amber Manson, both of Petco.

LORNA OPPEDISANO PHOTOS | NNY BUSINESS

LORNA OPPEDISANO PHOTOS | NNY BUSINESS

From left, Tiffanie Eppolito, Meagan Snyder and Kylie Merritt, all of IT Works Global. The Greater Watertown-North Country Chamber of Commerce and The WorkPlace presented the 2015 Job & Career Expo at the Bruce M. Wright Memorial Conference Center on Thursday, April 9.

Randy and Janice Jerome, both of RJ’s Catering, Adams Center.

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GWNC Chamber Job & Career Expo

From left, Roy Davis, Amanda J. Hibbard and Kathy J. DeForge, all of JAIN Irrigation, Watertown.

From left, George DeVita and Rich Duvall, both of Carthage Area Hospital.

LORNA OPPEDISANO PHOTOS | NNY BUSINESS

LORNA OPPEDISANO PHOTOS | NNY BUSINESS

From left, Kesha Bello, Leela Wasilenko and Alex Babyak, all of Chipotle, Watertown.

From left, Wendy Inman and Vicki Moore, both of Carthage Area Hospital.

The Greater Watertown-North Country Chamber of Commerce held its April Business After Hours at Jose O’Connor’s, Carthage, on Wednesday, April 15.

The event was co-sponsored by Carthage Area Hospital and USO Fort Drum.

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Jasmine and Michael Gigas, both of Mava.

From left, Claudia Bazaar, Pampered Chef, and Cassandra Wasser.

LORNA OPPEDISANO PHOTOS | NNY BUSINESS

From left, Sheila Wilson and Chanel Rhodes, both of Aflac. The Greater Watertown-North Country Chamber of Commerce held its April Business After Hours at Jose O’Connor’s, Carthage, on Wednesday, April 15. The event was co-sponsored by Carthage Area Hospital and USO Fort Drum.

LORNA OPPEDISANO PHOTOS | NNY BUSINESS

From left, Dione Donald and Taylor Scanlin, both of Carthage Area Hospital, and Lydia Young, Campany, Young & McArdle.

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business history

Recording a legacy Graphic Controls provided ‘consistent’ jobs for Clayton

By Lorna Oppedisano

W NNY Business

hen one thinks of Clayton, “waterfront destination” typically comes to mind. But within the past century, the riverfront village was home to Graphic Controls, a Buffalo-headquartered manufacturing plant that produced recording charts for industrial and medical applications. In its day, the firm was one one of Clayton’s largest employers.

The Clayton plant opened in 1938 as Staebler & Baker Inc. on Riverside Drive. It closed in 1950, and the printing equipment was moved to the former Warner Knitting Mill at 549 Franklin St., where the plant remained until 1994.

In 1957, Staebler & Baker consolidated with five other firms to form Graphic Controls Corp. According to a Watertown Daily Times article from April 1958, the company was established with a capitalization of $6 million and estimated sales of $4 million. Along with the Clayton plant, the corporation had another local tie: Walter A. Staebler of Clayton was a member of the board of directors.

Two years later, the company acquired Cooper Paper Box corporation of Buffalo and Technical Paper Company Inc., of Linden, N.J., bringing the number of Graphic Controls subsidiaries and divisions to nine.

Until that time, Graphic Controls had concentrated on printing records for automation and instrumentation. By acquiring Technical Paper Company, the corporation could broaden its line of heat-sensitive papers and films for the field of oscillograph recording.

“The addition of Cooper Paper Box corporation, however, will represent our first major step in the direction of product diversification,” Mr. Staebler was quoted in the article.

Even though Graphic Controls was headquartered in Buffalo, the corporation showed local interest. In January 1972, the company pledged $100 toward the creation of the proposed Centennial Park in Clayton.

44 | NNY Business | May 2015

Watertown DAILY TIMES ARCHIVES

Graphic Controls Corp’s Recording Chart Division in Clayton. The firm was once a major employer in the St. Lawrence River village.

At the end of 1974, discussion began about expansion of the plant. A four-man industrial delegation made up of Allen L. Smith, president of Jefferson County Industries, Gordon D. Cerow, head of Jefferson County Development Agency, James A. Merritt, director of Jefferson County’s Department of Planning, and Kenneth W. Steblen, executive director of Jefferson County Industries, traveled to the Graphic Control headquarters for a “public relations type visit,” Mr. Smith called it.

“If there is a chance to improve on the county’s industrial climate, it is our job to pursue it,” he said.

Directly following the meeting, the Times reported that the corporation hadn’t made a decision, but that the representatives were encouraged. At the Buffalo conference, both Jefferson County industrial agencies offered help in the form of financial capabilities and resources.

Ultimately, the plans for expansion never came to fruition. It was reported in April 1975 that plans would be put on hold because of the “economic situation,” but M. L. Schechtman, the Graphic Control’s manufacturing manager, said the company had earmarked money for an expansion in

three to five years. At that point, the Clayton plant employed 48 people.

The corporation as a whole continued to do well. In early 1977, it reported a net income rise of about 28 percent in the previous year, to a record of about $3 million, or about $2.37 a share.

Later that year, Graphic Controls again considered the possibility of expanding the Clayton plant, which then employed 54 people. The Buffalo architect-engineering firm of Fruitbaum, Inc. conducted the study. Had the expansion been approved, the Jefferson County Industrial Development Agency planned to provide funding.

In July, the expansion was declared delayed for “an indefinite period.”

The next year, UMC Industries Inc. of Stamford , Conn., a company that manufactured merchandising equipment, paper products and automated machinery, proposed to pay $27 a share for each of Graphic Controls’ 1,220,000 shares outstanding, a transaction valued at about $33 million, the Times reported in January 1978.

This, however, did not happen. The next month, it was announced that Time Mirror Co. of Los Angeles agreed to purchase any and all shares at $39 per share. UMC

business history withdrew its offer the morning of the announcement on Feb. 1, 1978.

The following year, it was reported that the Clayton plant had record sales of $17,737,000 in the year’s third quarter.

Employment had increased to 54 people, with up to 58 during peak production in the spring and fall.

“We are in excellent shape,” plant manager Lee E. Caylor told the Times.

The plant continued to play an important role in the local economy into the next decade. In Aufust 1983, the Times called Graphic Controls “one of Clayton’s largest and most consistent employers.”

In November 1986, officers of Graphic Controls Corp. signed a letter of intent to purchase the company for $146 million. Since Time Mirror had bought the stock years before, revenues had nearly doubled. It was reported that this change would have no impact on local operations.

Graphic Controls’ involvement in the local community did not fade. In March 1987, it was reported that the company donated $5,000 towards the Clayton parks beautification project.

The local branch of Graphic Controls closed the next decade. In 1993, company officials announced plans to shut down the Clayton plant.

“Clayton has been one of our most productive facilities, but there’s less of a demand for the product these days,” May C. Randazzo, the company’s spokesperson, said.

The next year, Graphic Controls said they would vacate the plant by Nov. 30, 1994, after stopping operations in the summer and moving equipment to Buffalo in the fall. At least one-fifth of the Clayton employees would be eligible for early retirement, and a quarter would have the opportunity to relocate to Buffalo, Mrs. Randazzo told the Times.

According to Graphic Controls’ website, the company was acquired by Tyco International in 1998, and is still headquartered in Buffalo today. n LORNA OPPEDISANO is staff writer and editorial assistant for NNY Magazines. Contact her at loppedisano@wdt.net or (315) 6612381. Business history is a monthly feature from the archives of the Watertown Daily Times. Visit www.watertowndailytimes.com to access digital archives since 1988, or stop by the Times, 260 Washington St., Watertown to research materials in our library that date back to the 1800s.

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I

N E X T MON T H

n June, our annual tourism issue, writer Norah Machia examines recent challenges in the tourism and recreation sector as the summer season heats up with fewer Canadians likely bound for the north country.

Also coming next month: n A FAMILY LEGACY: For decades, one family has forged a legacy of business and community stewardship in St. Lawrence County. We visit the Wrights of Ogdensburg Pepsi Bottlers.

n SMALL BIZ STARTUP: A feature story about a recently opened north country small business in Lewis County. n 20 QUESTIONS: An in-depth interview with a north countyry business leader. n PLUS: NNY Snapshot, Economically Speaking, Commerce Corner, Nonprofits Today, Business Tech Bytes, Small Business Success, Real Estate, Agri-Business, Business History and Business Scene. n VISIT US ONLINE at www.nnybizmag.com.

Follow us on Twitter for daily updates at @NNYBusinessMag, like us on Facebook at www.facebook.com/nnybusiness, and view eEditions at www.issuu.com/NNYBusiness.

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