NNY Business September 2013

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THE INTERVIEW

Bay Brokerage CEO Kenneth M. Carmon

p. 42

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NNY Business | September 2013

>> Inside SEPTEMBER 2013

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30 ALL SQUARED AWAY North country merchants are using mobile apps such as Square to accept card payments on the go.

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GUEST ESSAY |

32 SKILLS FOR THE FUTURE BOCES is planning a new manufacturing technology course to fill a skills gap.

41 TOP TRANSACTIONS The top 10 property sales in Jefferson, St. Lawrence and Lewis counties.

34 BANKING ON THE GO Watertown Savings Bank has launched a banking app, complete with a mobile deposit feature.

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ST. LAWRENCE COUNTY |

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BUSINESS HISTORY |

45 COMMUNITY SUPPORT United Way CEO Robert D. Gorman on why we should give back to the community. |

SMALL BIZ STARTUP |

17 PILATES POWER Owner of Lake Ontario Pilates hopes to begin training new instructors. |

REAL ESTATE |

COVER |

18 ALL EARS TUNED IN NNY’s major frequencies are locked in an ever-competitive battle for listeners. |

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FEATURES |

28 PUBLIC RADIO PRIDE Oswego-based WRVO has expanded over its 44 years.

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MILESTONES |

36 A SILVER CELEBRATION Watertown’s Apollo restaurant marks 25 years of excellence in authentic Greek cuisine.

38 COMMERCIAL SALES Commercial sales are lagging somewhat in Jefferson County, but up in St. Lawrence.

35 PELLET PERFECT Curran Renewable Energy has earned certification with the Pellet Fuels Institute.

60 OLD-FASHIONED DELIGHT Martin’s Pretzels continues to hand-twist its famous pretzels in Philadelphia.

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NNY Business | September 2013

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INTERVIEW

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ABOUT THE COVER

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42 NEW MARKETS ABOUND Bay Brokerage president Kenneth M. Carmon has translated his lifelong love of international trade into a successful and growing firm that specializes in customs, software, logistics and consulting. |

COLUMNS

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46 ECONOMICALLY SPEAKING 47 NONPROFITS TODAY 48 COMMERCE CORNER |

DEPARTMENTS

10 11 12 16 17

49 AGRI-BUSINESS 50 BUSINESS TECH BYTES 51 SMALL BUSINESS SUCCESS

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

37 52 54 60 62

REAL ESTATE ROUNDUP CALENDAR BUSINESS SCENE BUSINESS HISTORY WHAT’S HAPPENING HERE?

For this month’s cover illustration, Johnson Newspapers graphic designer Todd Soules created an image that depicts the battle for listeners in the north country’s ever-competitive broadcast radio market. Our cover story by staff writer Leah Buletti begins on page 18.

September 2013 | NNY Business

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CONTRIBUTORS

BusIness www.nnybizmag.com

Chairman of the Board John B. Johnson Jr.

Lance M. Evans is executive officer for the Jefferson-Lewis and St. Lawrence County Board of Realtors. He explains why the Mortgage Interest Deduction is not viable. (p. 37)

Michelle Capone is regional development director for Development Authority of the North Country. She writes about understanding and reading financial statements. (p. 46)

Rande Richardson is executive director of the Northern New York Community Foundation. He discusses benefit corporations, socially conscious firms. (p. 47)

Publishers

John B. Johnson Harold B. Johnson II

Magazine Editor

Kenneth J. Eysaman

Magazine Staff Writer Leah Buletti

Magazine Advertising Manager Matthew Costantino

SLC Advertising Director Lynn Pietroski is president and CEO of the Greater WatertownNorth Country Chamber of Commerce. She writes about how and when businesses should rebrand. (p. 48)

Jay Matteson is the agricultural coordinator for the Jefferson County Industrial Development Corp. He writes about his work promoting agriculture on The Home Grown Show. (p. 49)

Jill Van Hoesen is chief information officer for Johnson Newspapers and a 25-year IT veteran. She discusses the benefits of various technology and apps in use in vehicles. (p. 50)

Tammy Beaudin

Circulation Director Mary Sawyer

Photography

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

Ad Graphics, Design

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

Sarah O’Connell is an advisor for the state Small Business Development Center at JCC. She writes about how businesses can save through green initiatives. (p. 51)

Bob Gorman is former managing editor of the Watertown Daily Times and CEO and president of United Way. He writes about why it’s important for us to all give back. (p. 45)

Rebecca Madden is a Johnson Newspapers staff writer. She writes about public radio and the success of WRVO, which recently started broadcasting in Clayton. (p. 28)

MARKETPLACE Allstate ......................................... 25 Americu Credit Union ................... 4 Bach & Company ....................... 11 Bay Brokerage ............................ 29 Bayview Shores Real Estate ....... 39 Beaver Meadows........................ 39 Behlings Orchards....................... 55 The Blue Heron ............................ 58 BOCES .......................................... 10 Body Pros ....................................... 3 Burrville Cider Mill ....................... 31 C&M Auto .................................... 26 Cantwell and Associates ........... 25 Christensen Realty ...................... 39 Clayton Dental Office................... 7 Clayton Marina ........................... 56 Coleman’s Corner ...................... 58 The Computer Guys ................... 50 Cortel Improvement ................... 22 D Laux Properties ........................ 39 Dano’s Pizzeria ............................ 58 DANC ........................................... 48 Steve Duffany Insurance ............ 25 Fairgrounds Inn ........................... 58 Foy Agency ................................. 11 Fuccillo Automotive ................... 26

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Fuller Insurance .......................... 25 Geico ........................................... 25 HD Goodale Co. ......................... 25 High Tower Advisors ................... 44 Hilton Garden Inn ....................... 58 Howard Orthotics ........................ 46 GWNC Chamber of Commerce Speaker Series .............................. 6 Innovative Physical Therapy Solutions ........................ 47 JCC Foundation .......................... 57 JCC .......................................... 7, 33 Jefferson County IDA ................. 61 Karen and Jasper’s Bistro .......... 58 Ken Piarulli/Ameriprise ............... 29 KIMCO Steel Sales ........................ 2 LaClair Family Dental ................. 59 LoFink Ford .................................. 52 LTI ................................................. 45 Macar’s ........................................ 14 Marra’s Homecare ..................... 16 McEvoy Insurance ...................... 25 Moe’s Southwest Grill ................. 58 Nancy McCabe .......................... 25 NNY Community Foundation ..... 40 Northern Awning & Sign Co. ........ 7

NNY Business | September 2013

Nortz & Virkler ............................. 26 Painfull Acres .............................. 11 Robert’s Automotive ................... 26 SeaComm Federal CU ............... 41 Shred Con ................................... 51 Sideline Promotions .................... 10 Slack Chemical .......................... 49 Three C Limousine ...................... 63 Thousand Islands Realty ............ 39 Tilted Kilt ....................................... 58 Tunes 92.5 FM .............................. 23 Vandewater & Associates ......... 39 Waite Motor Sports ..................... 15 Waite Toyota ............................... 54 Watertown Auto Repair .............. 26 Watertown Dental ......................... 9 Watertown Local Development Corp. ................... 37 Watertown Savings Bank ........... 24 Watertown Spring ....................... 26 Wells Communications .............. 62 Westelcom .................................. 61 Wills Wrecker ............................... 26 WRVO Stations ............................ 64 WWTI TV 50 ................................... 27 Zeibart Tidycar ............................ 26

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. © 2010-2013. 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.

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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 mcostantino@wdt.net, or call 315-661-2305 In St. Lawrence County, e-mail tbeaudin@ogd.com, or call 315-661-2512 Printed with pride in U.S.A. at Vanguard Printing LLC, Ithaca, N.Y., a Forest Stewardship Certified facility.

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September 2013 | NNY Business

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EDITOR’S NOTE

P

erhaps Community Broadcasters president and CEO Jim Leven summed up the second-oldest modern communications medium best when he likened radio to “your best friend sitting next to you with his arm around you on the couch, telling you what’s going on, entertaining you, playing your favorite music.” Indeed, radio is a form of communication that other technologies just can’t duplicate. Sure, the Internet comes close, but with all the user input that’s required to enjoy it, I’d take radio over the net any day.

In this month’s cover story, which begins on page 18, staff writer Ken Eysaman Leah Buletti delves into the north country’s radio market, focusing on two of the largest broadcasters in Northern New York, Mr. Leven’s Watertown-based Community Broadcasters and Tulsa, Olka.-based Stephens Media, which, among other frequencies, operates top-rated country music station Froggy 97. Adding to the mix, Leah got to know Tim Sweeney, general manager of Intrepid Broadcasting’s Tunes 92.5, a standalone station owned by State College, Pa.-based Magnum Broadcasting, which operates five frequencies in that market. Tunes went live in 2008, and it continues its steady climb, competing formidably with its larger, multi-frequency peers.

We first conceived this story about a year ago, shortly after Mr. Leven flipped the switch on his classic rock station, changing its format to country music in an attempt to take a bite out of Froggy. A year later, a fascinating story has emerged in a radio market that, despite the glut of stations on the air, appears to be thriving.

20 QUESTIONS — This month’s featured interview is a conversation with a north country native who has made his mark in international commerce while, along with his business partners, continues to create sustainable, well-paying jobs in our region and beyond. As a young man, Claytonite Ken Carmon got his start in international business at the Thousand Islands Duty Free store on Hill Island, working along-

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NNY Business | September 2013

side his best friend, Daniel Tubolino. Today, Ken and Daniel are again working together as partners in Bay Brokerage, world-class customs brokerage firm that specializes in international trade solutions, logistics and consulting with offices in Alexandria Bay, Champlain, Buffalo and Port Huron, Mich. Earlier this year, Bay Brokerage opened a new state-of-the-art corporate headquarters on state Route 12, just south of the Thousand Islands Bridge. Indeed, Ken is a busy man, but at 60, he shows no signs of slowing down. Our conversation with him begins on page 42.

BUSINESS SCENE — This month’s Scene section, which begins on page 54, features 40 faces from nearly three dozen north country businesses and organizations. On Aug. 15, we joined the Greater Watertown-North Country Chamber of Commerce for Business After Hours at the Fairfield Inn & Suites, where a traditional clam bake proved a welcome break from the summer heat.

The evening also marked the first anniversary for the 103-room Fairfield, Watertown’s newest hotel. The following week, on Aug. 22, we joined the Carthage Area Chamber of Commerce for Business After Hours at Independent Medical Evaluation Company. Thanks to IMEC for a great evening of food and networking. Finally, on Aug. 24, we caught a ride with Uncle Sam Boat Tours and made our way to Heart Island for The Gala at Boldt Castle, an evening of French elegance produced by River Hospital Foundation. Congratulations to our friends at River Hospital and the Foundation for a first-rate event.

20 UNDER 40 — It’s hard to believe that we will soon open nominations again for our annual NNY Business 20 Under 40 program that honors emerging leaders who show promise in their professions and their communities. Look for more information in next month’s issue and on our website, www.nnybizmag.com, where you will find all the requisite details, including a nomination form that you can download. As always, feel free to drop me a note to keysaman@ wdt.net with any questions. I look forward to hearing from you.

Yours in business,

PEOPLE ON THE MOVE Appointed Distinguished Professor in School of Health and Rehabilitation

Dr. Scott M. Lephart, an Adams native, has received the designation of distinguished professor and chairman in the School of Health and Rehabilitation Sciences at the University of Pittsburgh.

Dr. Lephart earned his undergraduate degree at Marietta College in Ohio and both Lephart his master’s and doctoral degrees in sports medicine from the University of Virginia. He joined the University of Pittsburgh faculty as an assistant professor in the School of Education in 1987. He led the transfer of the Sports Medicine Program from the School of Education to the School of Health and Rehabilitation Sciences during the 200001 academic year and was appointed the inaugural chair of the Department of Sports Medicine and Nutrition when the Sports Medicine program merged with the program of Clinical Dietetics and Nutrition. In 2008 he was promoted to professor.

He serves as director of the Neuromuscular Research Laboratory and the Warrior Human Performance Research Center, as well as professor in the Department of Orthopedic Surgery.

Dr. Lephart’s research interests include musculoskeletal sports and military injury prevention and performance optimization.

In 2008 he led a research team studying the Navy SEALs and finding ways to reduce combat operation injuries and improve their physical training. He has published 125 academic papers, given 250 national and international presentations and been invited to deliver 20 keynote lectures at professional events around the world.

He graduated from South Jefferson High School in 1979.

New staff named at Aubertine and Currier

Stephen Curtis and Benjamin Hoffman recently joined Aubertine and Currier Architects, Engineers & Land Surveyors, Watertown.

Mr. Curtis and Mr. Hoffman have worked as summer interns at the firm for the past two summers.

Mr. Curtis recently graduated from the University of Oklahoma with a master’s de-

gree in architecture. He joins the design studio as an architectural designer and will help with sustainable design of residential and commercial projects.

Mr. Hoffman recently graduated from Alfred State College with a bachelor’s degree in surveying engineering technology. He Curtis joins the firm’s land surveying department as a survey crew member.

Jill Cuppernell has joined the engineering department at Aubertine and Currier. Ms. Cuppernell is a Clarkson University graduate and has Hoffman been working in the engineering field for the past nine years.

She is a certified stormwater technician and performs a majority of the firm’s Stormwater Pollution Prevention Plan inspections on Fort Drum and in surrounding areas.

She lives in Cuppernell Watertown with her three children.

Chris Todd has also joined the engineering department.

As a civil engineer and site designer, Mr. Todd will help with design and perform various inspections on Fort Drum and in surTodd rounding areas.

Mr. Todd is a north country native, graduating from General Brown Central School, Dexter. He earned a bachelor’s degree in civil engineering from Clarkson University.

Promotions at Mountain Community Homes

Fort Drum Mountain Community Homes recently promoted Art Blakesley, Allyssa Dudo and James Newton.

Please see People, page 14

September 2013 | NNY Business

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NNY

Economic indicators Average per-gallon milk price paid to N.Y. dairy farmers July 2013 $1.83 June 2013 $1.83 July 2012 $1.53

19.6%

ECON SNAPSHOT

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

Source: NYS Department of Agriculture

536,036 in July 2013 461,633 in June 2013 567,942 in July 2012

Average NNY price for gallon of regular unleaded gas

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

July 2013 $3.76 June 2013 $3.66 July 2012 $3.60

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

4.4%

Average NNY price for gallon of home heating oil

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(Percent gains and losses are over 12 months)

July 2013 $3.67 June 2013 $3.62 July 2012 $3.66

0.27%

5.6%

$1.03 on July 22, 2013 $1.05 on June 22, 2013 $1.01 on July 23, 2012

2.0%

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*

July 2013 $2.84 June 2013 $2.82 July 2012 $3.06

89,600 in July 2013 91,100 in June 2013 89,400 in July 2012

7.2%

0.22%

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

115, median price $148,000 in July 2013 119, median price $155,000 in June 2013 128, median price $114,500 in July 2012

64, median price $93,500 in July 2013 54, median price $89,200 in June 2013 58, median price $88,000 in July 2012

10.2% Sales

29.3% Price

Source: Jefferson-Lewis Board of Realtors Inc.

10.3%

6.3%

Sales

Price

Source: St. Lawrence Board of Realtors Inc.

NNY unemployment rates* Jefferson County

July ’13 June ’12

8.5% 8.8%

July ’12

9.5%

St. Lawrence County July ’13

9.3% 9.6%

June ’12 July ’12

11.0%

Lewis County July ’13 June ’12 July ’12

8.4% 9.0% 9.2%

Source: New York State Department of Labor (Not seasonally adjusted. Latest available data reported.) * Latest available data reported due to annual data updates at the New York State Department of Labor.

Note: Due to updates in some “Econ. Snapshot” categories, numbers may differ from previously published prior month and year figures.

NNY Business | September 2013

NNY

Economic indicators New automobiles (cars and trucks) registered in Jefferson County Cars 530 in July 2013 551 in June 2013 439 in July 2012

20.7%

Trucks 132 in July 2013 167 in June 2013 99 in July 2012

33.3%

Source: Jefferson County Clerk’s Office

Passengers at Watertown International Airport

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

4,036 inbound and outbound in July 2013 3,303 inbound and outbound in June 2013 3,579 inbound and outbound in July 2012

2,008 in July 2013 2,007 in June 2013 1,864 in July 2012

7.2%

12.8% Source: Jefferson County Board of Legislators

DBA (doing business under an assumed name) certificates filed at the Jefferson County Clerk’s office Aug. 1 to Aug. 26, 2013. For a complete list of DBAs filed in past months, visit us at WWW.NNYBIZMAG.COM.

AUG. 26: Wike Garage Gym, 270 State St., Carthage, Gracey E. Wike, 802 B. Tamarak Drive, Carthage.

AUG. 23: AUltimate Outdoors, 215 High St., Theresa, Richard P. Ault, 215 High St., Theresa.

Opening Day Outdoors, 36547 Reese Road, Clayton, Daniel Lowe, 36547 Reese Road, Clayton.

AUG. 20: Manos Farm, 27101 Bonney Road, Watertown, Thomas C. Manos, Jr. and Debora L. Manos, 27101 Bonney Road, Watertown.

Lets Bee Creative, 221 West Joseph St., Cape Vincent, Katrina J. Clement, 221 West Joseph St., PO Box 616, Cape Vincent.

Unique Pets, 59 Grove St., Adams, Donald R. Taylor, 59 Grove St., Adams.

Sparklesbyria, 24343 Boot Jack Hill Road, Felts Mills, Maria Thex, 24343 Boot Jack Hill Road, Felts Mills.

AUG. 12: Metzler’s Mobile DJ Service, 8 Fifth Ave., Adams, Fuller F. Brown Metzler III, 8 Fifth Ave., Adams.

Pan de Vida Cafe, 8727 Noble St., Evans Mills, Regina M. Velez Carter, 141 East Hills, Watertown.

Fashion Jewelry, 21182 Salmon Run Mall, Watertown, Talya R. Ramazanoglu, 21751 Hewitt Drive, Carthage and Yasemin Ramazanoglu, 21751 Hewitt Drive, Carthage.

AUG. 9: Al’s Gardens, 23127 County Route 144, Black River, Alan J. Bush, 23127 County Route 144, PO Box 565, Black River.

360 Virtual Tours of Northern New York, 770 James St., Cape Vincent, Michael Frank, 770 James St., PO Box 166, Cape Vincent.

AUG. 8: Angi’s Healing Touch, 3602 N Townline Road, Lorraine, Angela M. Weldon, 3602 N. Townline Road, Lorraine.

This & That, 23 Main St., Philadelphia, Sarah R. Adams, 23 Main St., Philadelphia.

AUG. 7: Metamorphosis Medispa, 720 Washington St., Watertown, Simon Van Horne, 256 Michigan Ave., Apt. 407B, Watertown.

AUG. 19: TIC Marketing, 26177 state Route 3, Watertown, Shakira Litzner, 26177 state Route 3, Watertown.

Ray John Jr., 412 S. Pleasant St., Watertown, Raymond A. John Jr., 412 S. Pleasant St., Watertown.

Zombie Thwack, 655 Cooper St., Watertown, Joel Smith, 655 Cooper St., Watertown.

Travis DJ Service, 1133 Gotham St., Watertown, Travis Vankoughnett, 1133 Gotham St., Watertown.

Dogwood Dexter Cattle Ranch, 39686 Dogwood Drive, Theresa, Carina Shelmidine and Brian J. Albro, 39686 Dogwood Drive, Theresa.

Night Moves Entertainment, 32069 County Route 30, Philadelphia, Scott Britton, 32069 County Route 30, Philadelphia.

AUG. 16: New Beginnings Childcare & Learning Center, 9014 A Coblenz Circle, Watertown, Alexi Colon, 9014 A Coblenz Circle, Watertown.

AUG. 6: AMO Income Tax Service, 24255 U.S. Route 11, Calcium, William A. Patterson, 24255 U.S. Route 11, Calcium.

Creations By Miss Pat, 19207 Tubolino Road, LaFargeville, Patricia Tubolino, 19207 Tubolino Road, PO Box 212, LaFargeville.

AUG. 15: Vent Kayr, 30 Wardwell St., Adams, Richard Walters, 30 Wardwell St., Adams.

AUG. 14: Terminal Velocity, 110 Monroe St., Sackets Harbor, John Campbell, 110 Monroe St., Sackets Harbor.

All American Drafting, 7 E. Church Street, Apt. 2, Adams, Charles F. Schram, 7 E. Church St., Adams.

AUG. 5: M & M Taxidermy, 5336 U.S. Route 11, Adams, Mark James McGhee, 5336 U.S. Route 11, Adams.

Summit Mobile Home Park, 25639 Branche Road, Watertown, Ellen M. Comstock, 25638 Branche Road, Watertown.

AUG. 13: Busy Momma’s Hair Effects, 770 W. Main St., Watertown, Jennifer McCann, 770 W. Main St., Watertown.

AUG. 1: Smitty’s Old Tyme Seasoning, 10674 Cheever Road, Chaumont, Marsha J. Barton and Justin L. Henderson, 10674 Cheever Road, Chaumont.

Infinite Prints, 834 Davidson St., Watertown, Michael Moran, 834 Davidson St., Watertown.

NNY Lawn Care, 27162 Cramer Road, Copenhagen, James C. Daniels, 27162 Cramer Road, Copenhagen.

TRANSACTIONS

DBAs

Source: Social Service Depts. of Jefferson, Lewis and St. Lawrence counties

September 2013 | NNY Business

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PEOPLE ON THE MOVE PEOPLE, from page 11 Mr. Blakesley now serves as community manager for Crescent Woods Community Center, overseeing roughly 1,000 homes and families, including the newest housing addition currently under construction.

Mr. Blakesley served in the army for 22 years, retiring to the north country Blakesley with rank of first sergeant in 2005. He joined Fort Drum Mountain Community Homes as an assistant manager at Crescent Woods. In 2011, Mr. Blakesley became assistant manager for the Monument Ridge Community Center.

Dudo Ms. Dudo now serves as community manager at the Rhicard Hills Community Center, where she oversees roughly 1,000 homes and families.

Ms. Dudo is a Northern New York native. She received Newton a bachelor’s degree with honors in marketing with a minor in psychology from Alfred State College in 2007. Ms. Dudo joined Mountain Community Homes in 2008 as resident services coordinator in the Rhicard Hills Community and was promoted to manager of the Timbers.

As Timbers manager, she helped spearhead

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NNY Business | September 2013

the launch and leasing of 192 apartments for single or unaccompanied soldiers on Fort Drum, a pilot program.

Mr. Newton now serves as manager of the Timbers, overseeing 192 apartments for single and unaccompanied soldiers on Fort Drum.

Mr. Newton joined Fort Drum Mountain Community Homes in 2011 after he retired with 21 years of service in the army with rank of sergeant first class. He began as a resident services coordinator for Crescent Woods Community in 2011 and by 2012 was promoted to assistant manager for Adirondack Creek Community Center.

Earns chamber’s young professional award

Tracy L. Bellerdine, a registered architect with Beardsley Design Associates Architecture, Engineering & Landscape Architecture, recently received the 2013 Cayuga County Chamber of Commerce Terri Bridenbecker Young Professional Award.

Bellerdine The award is given in memory of Terri Bridenbecker, executive director of the Cayuga County Chamber of Commerce from 2001 to 2009. He died unexpectedly in January 2009 at age 47.

The award recognizes a goal-oriented person under the age of 40.

During her 13-year tenure at Beardsley Design Associates, Ms. Bellerdine has passed the licensing exam to become a registered architect in New York state and earned the U.S. Green Building Council’s certification as a LEED accredited professional.

Ms. Bellerdine, who was named a stock-

holder in the firm in February, participates in the firm’s job shadowing program and volunteers for Habitat for Humanity outside of work. She earned a bachelor’s degree in architecture from the State University of New York at Buffalo.

Beardsley Design Associates Architecture, Engineering & Landscape Architecture is based in Auburn and has offices in Syracuse and Malone.

Historical Society names new executive director

Jessica M. Phinney was appointed executive director of the Jefferson County Historical Society last month.

Her most recent job was curator of exhibits and general collections at the Antique Boat Museum, Clayton, from July 2010 to October Phinney 2012. Ms. Phinney also was the executive director of the Ulster County Historical Society, Stone Ridge, from June 2008 to December 2009.

She received a bachelor’s degree in anthropology from St. John Fisher College, Rochester, in May 2006, and a master’s degree in anthropology from SUNY Albany in May 2009. While attending St. John Fisher, Ms. Phinney was an archive and study center intern at the George Eastman House, Rochester, where she catalogued George Eastman’s first African safari collection of photographs into the museum’s computer database.

Ms. Phinney lives in Clayton with her husband, James Cameron. They are expecting their first child together this fall. n Share your business milestones with us. Email news releases and photos to nny business@wdt. net by the 15th of the month for the following issue.

BUSINESS BRIEFCASE Lewis Chamber accepting nominations for Business Person of the Year Award

The Lewis County Chamber of Commerce Board of Directors is accepting nominations for the Lewis County Business Person of the Year Award for 2013.

This is the 32nd consecutive year the award will be presented to an individual that has demonstrated outstanding civic contributions to the Lewis County community.

Candidates will be judged on business and community involvement, as well as on leadership, dedication, motivation, achievements and citizenship.

The award will be formally presented at the Lewis County Chamber of Commerce Annual Business Person of the Year Dinner on Thursday, Nov. 21.

Nomination forms can be found at the Lewis County Chamber of Commerce office or on their website, www.lewiscountychamber.org. Nominations must be made no later than Wednesday, Sept. 25 at 4 p.m., to the Chamber office at 7576 South State St. Call 376-2213 for more information.

New MRI coming to Carthage Area Hospital

Carthage Area Hospital has announced the purchase of a new Philips MR Scanner.

The Philips 1.5T Ingenia is the first-ever digital broadband MR system and will be the first in the north country. The machine is slated to arrive in late October. In the interim, the hospital purchased a Philips 1.5T Achieva MRI, a mobile scanner, in late August.

The new mobile scanner can perform a complete high resolution diagnostic evaluation of the cervical spine in less than 15 minutes. It can image the entire

abdomen or pelvis in a single breath-hold.

The machine’s benefits include a widebore opening for patient comfort and easy positioning for larger patients, clearer images produced faster and reduced exam time.

For more information, contact the hospital’s Medical Imaging Department at 4931000 or visit www.carthagehospital.com.

Gift-ology opens at Salmon Run Mall

Gift-ology, a retail emporium that sells unusual gifts as well as famous brands, opened last month at Salmon Run Mall near Sears.

The shop sells brands including Alex & Ani, Andrea Valentini, Vera Bradley, Uno de 50, Petra Azar, Yankee Candle, Story Jewelry, Farmhouse Fresh and Nora Fleming.

Gift-ology has four other stores in New York and three in Massachusetts. The company plans to open approximately 20 stores in five states this year.

CPH Birthplace tests newborns for heart disease Canton-Potsdam Hospital’s Birthplace maternity unit has implemented a new test to detect critical congenital heart disease.

The test, called pulse oximetry, is administered by taping a tiny sensor to a baby’s foot to measure the amount of oxygen in the baby’s blood.

If an abnormality is detected, CPH can provide appropriate advanced care in collaboration with Crouse Hospital, Syracuse, and Fletcher Allen Health Care of the University of Vermont Medical Center in Burlington, Vt. CCHD is the leading cause of infant death due to birth defects, according to the U.S. Centers for Disease Control and

Prevention; babies may need immediate emergency procedures to avoid lifethreatening complications.

Pulse oximetry testing has been proven effective if performed when the newborn is between 24 and 48 hours old and New York state legislation signed into law this August added the testing to a list of required tests birthing facilities across the state must perform.

MMH named ‘Most Wired’

Massena Memorial Hospital has been named a Most Wired Hospital by Hospitals & Health Networks magazine for its efforts in medical technology for the fourth consecutive year and for the fifth time in six years.

In New York, 20 hospitals were designated as Most Wired, Most Improved, Innovator Award-Finalist or Wired-Small and Rural.

Locally, MMH was one of two hospitals to earn the recognition, along with Alice Hyde Medical Center, Malone.

MMH’s Information Technology accomplishments include developing an online patient portal to be launched later this year, the launch of a new electronic medical record for all outreach clinics and physician offices and meeting the requirements to date for meaningful use.

This is the 15th year the survey has been conducted in cooperation with McKesson Corp., AT&T, the College of Healthcare Information Management Executives and the American Hospital Association. Between Jan. 15 and March 15, the survey asked hospitals and health systems nationwide to answer questions regarding their IT initiatives. Respondents completed 659 surveys,

Please see BRIEFCASE, page 16

September 2013 | NNY Business

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BRIEFCASE, from page 15 representing 1,713 hospitals, roughly 30 percent of all hospitals nationwide.

TI Rescue gets $118K in loans, grant funding

U.S. Sens. Charles E. Schumer and Kirsten E. Gillibrand announced last month that the Thousand Islands Emergency Rescue Service, Clayton, will be awarded $118,000 in federal loans and grant funding to purchase a new ambulance.

TIERS will get a $41,300 grant and $76,700 loan through the U.S. Department of Agriculture Rural Development Office’s Community Facility Loan and Grant program. The money will go toward the purchase of a Type III ambulance to serve the local rural area and improve emergency response and safety, according to a news release about the award.

Arsenal Street Diner opens its doors

The Arsenal Street Diner, 821 Arsenal St., held a grand opening on Saturday, Aug. 17 after own Phillip T. Kane spent more than two years gutting the interior and installing new kitchen appliances. Mr. Kane began leasing the building in 2011.

The homestyle restaurant, which features a simple breakfast, lunch and dinner menu, was inspired by diners that Mr. Kane visited across the country as an independent contractor who logged more than 100,000 miles a year on the road.

Mr. Kane, 52, finished most of the construction work himself at the 2,600-square-foot diner.

Seating 84 people, the diner is staffed by 11 full-time and six part-time employees. Mr. Kane and his wife, Dorene

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NNY Business | September 2013

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F., interviewed 60 candidates during the week prior to its Saturday opening to hire servers, cooks and dish washers.

Offered throughout the day, the breakfast menu will feature classic items such as pancakes, eggs, omelettes, bacon and sausage. The lunch menu will feature hamburgers, hot dogs, fish and club sandwiches, buffalo wings, french fries and salads. Specialty sandwiches, steak, chicken, fish and filet mignon will be featured for dinner. Daily specials ranging from $9 to $15 will be offered from 11 a.m. “until the food runs out,” Mr. Kane said.

Mr. Kane, who grew up in the city and graduated from Watertown High School in 1980, said he believes there’s room for another family-style diner in the community.

The diner will be open from 6 a.m. to 9 p.m. seven days a week.

Scrub Hub opens to provide stylish medical professional apparel

The Scrub Hub opened in August at 19033 Route 11 to provide stylish and flattering garb for every medial occasion. Owner Bonnie M. Herman’s selection includes both high end and affordable labels from brands familiar and foreign, including Dickies, Sketchers, Cherokee, Beverly Hills and Med Couture. Prices range from $23.99 to $9.99 and there is also a clearance rack for discon-

tinued items set at $6.99 and up.

Medical offices and clinics have adopted the clothing, as have veterinarians, dentists, gardeners, painters, cafeteria workers and a whole host of other medical and non-medical employees, Mrs. Herman said. That explosion in popularity has encouraged crosspromotion and interest from seemingly unlikely designers.

Mrs. Herman, a radiologic technologist at Samaritan Medical Center, said she got the idea for the business seven years ago when she realized how hard it was for her and her colleagues to get scrubs in the area. At the same time, she said, she would often receive compliments on the scrubs that she purchased during vacations in Florida.

In June, she moved into the 1,056-square-foot building where the store is now located. She is renting the space from the Ames Brothers, who once owned a service station adjacent to the site.

Mrs. Herman said she hopes to attract customers who don’t want to travel to Syracuse to shop for scrubs or pay the shipping and handling charges that come with catalog shopping.

Shopping in a store also gives customers the ability to try on clothes to get a feel for their fit and comfort, she said.

Styles that are not in stock can, in many cases, be ordered.

Mrs. Herman said her store is distinct from other locations that sell scrubs in that she does not charge a higher price for larger uniforms. She carries sizes XXS through 5XL. The business employs two full-time managers and four part-time salespeople.

The Scrub Hub is open Monday through Saturday from 11 a.m. to 8 p.m. and Sunday from 1 p.m. to 6 p.m.

S M A L L B I Z S TA R T U P BUSINESS

Lake Ontario Pilates THE INITIAL IDEA

Lake Ontario Pilates owner Jennifer L. Dean is far from her home state of Tennessee, the only place she lived before to moving to the north country last summer. But thanks to abundant community support, she’s been able to create her own home in Sackets Harbor, launching and single-handedly running a thriving exercise studio on Main Street in the village.

Ms. Dean decided to open the studio after moving to be closer to her boyfriend, a soldier stationed at Fort Drum whom she met through her brother, who also is stationed on post. She opened the studio on Oct. 15.

Before moving north, Ms. Dean taught Pilates classes at a gym in Tennessee before managing Collierville Pilates there for two years. She described that studio as “small scale” and said she always “had a vision for the kind of studio she wanted to run.”

Her Sackets Harbor studio is one expansive room with picture windows that overlook Main Street, an ornate ceiling with antique chandeliers and glimpses of Lake Ontario in the distance.

“It’s like it was meant to be,” she said. “I always wanted to have a studio by a lake and now I do.”

She also wanted to open the studio because the area has few other options for machine-based Pilates — the closest place for similar instruction is Syracuse, she said, though venues such as the downtown YMCA in Watertown offer mat-based Pilates classes. Lake Ontario Pilates has three reformer machines; classes are primarily equipment based, with some mat instruction.

Reformer machines use a series of springs and pulleys to give clients a full-body workout focused on strengthening and stabilizing the upper body and core muscles, as well as increasing flexibility. Machine-based Pilates makes her practice “versatile,” allowing her to modify positions and tailor workouts to the needs of individual clients.

Her three machines also necessitate small classes, another advantage.

“I’m big on correct form,” Ms. Dean said. “Big groups don’t get the same kind of personal attention.”

About 75 percent of her classes are individual; she recommends private sessions for those new to Pilates, those rehabilitating from a specific injury or those who may not feel comfortable in a group setting. Ms. Dean also said that very few of her clients have been on a reformer before, but all almost immediately see its benefits.

“I’ve yet to put one person on a machine who doesn’t love it,” she said.

Pilates improves coordination and concentration, which can improve overall well-being by reducing stress and blood pressure, relieving pain and improving posture, Ms. Dean said. In addition to the reformer and mat work, classes also make use of equipment including a tower, chair and jumpboard for a full-body workout. Unlike more traditional weight training regimens, Pilates is a workout for the mind and body, she said.

TARGET CLIENTELE

The biggest sur-

“I found Pilates and I had complete relief. I was completely healed, no more back pain.”

— Jennifer L. Dean AMANDA MORRISON | NNY BUSINESS

prise hasn’t necessarily been seeing large amounts of snow for the first time, but the “great local support” of her studio, Ms. Dean said, negating her fears of opening right before the winter.

Contrary to what she expected, Ms. Dean said the summer brought only about a 10 percent increase in customers, about five to 10 new clients.

Locals are 90 percent of her clientele, she said, and although she offers a 10 percent discount for military, she only has a few clients from post.

While the studio attracts a large age range — from people in their 20s to people in their 80s — most are in their mid-40s, and most are women, which Ms. Dean hopes to change.

Men formed a “huge” part of her clientele in Tennessee, but Ms. Dean said she has only had one male client, a Fort Drum soldier who left the area.

“There’s a misconception about Pilates being for women,” Ms. Dean said. “If men can get in and on the machines, they really love them.”

As Pilates can increase flexibility and range of motion, it can be “really useful for men” and enhance performance in almost any sport, even golf, she said.

Ms. Dean also gets clients who are in physical therapy as the modifications she can make to routines with machine-based Pilates enables those coping with some injury to “still get in and do some exercise.” About 50 percent of her clients need or have needed some form of rehabilitation, she said.

THE JOURNEY

Ms. Dean suffered a motorcycle accident in 2002 and said afterwards she “had some relief through physical therapy,” but still had back pain. As an active woman with a lifelong passion for fitness, she started practicing Pilates in 2005, fell in love with it and was soon doing it up to six times per week.

“I found Pilates and I had complete relief,” she said. “I was completely healed, no more back pain.”

Pilates can help with back pain because most lower back problems result from weak abdominal muscles; Pilates also improves alignment and range

of motion, which reduces back strain, she said.

Ms. Dean holds a degree in science from Middle Tennessee State University, which she said helps her teaching because she understands human anatomy. She received her Pilates training, which includes student teaching and observation, through California-based Balanced Body University and has been teaching since 2006.

She began renting the building, which was formerly occupied by the boutique Bev & Co. now down the street, in October and said she didn’t have to do much besides paint. The bright, airy room could host classes of 25 to 30 people if the machines were folded up and pushed aside, she said, enabling her to diversify class offerings.

Unlike other exercise regimens that often don’t take long to go out of vogue, Ms. Dean said Pilates has been around for some time and is less of a fad than the recently popular dance-based exercise Zumba.

“I think Pilates is here to stay,” she said.

IN FIVE YEARS

Ms. Dean teaches three group reformer/combo classes on Monday and Wednesday and two on Tuesday, Thursday and Friday. She plans to soon add another Tuesday/ Thursday class at either 1 or 3 p.m., and up to three pieces of equipment to teach classes of up to six.

On a larger scale, Ms. Dean hopes to become certified to train others as Pilates instructors so they could teach at her studio and she could expand class offerings to include Zumba or yoga.

“I can only do so much as one person,” she said.

She plans to complete training through Balanced Body University and become a sponsored studio within the next year. After that, she hopes to open more studios. But even with such ambitions, Ms. Dean said she loves the small town vibe and people in Sackets Harbor. “I wouldn’t mind staying in the area permanently,” she said.

— Leah Buletti

WHERE 205-207 W. Main St., Sackets Harbor | FOUNDED 2012 | WEB www.lakeontariopilates.com

September 2013 | NNY Business

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COVER STORY

Keeping the

north country

TUNED IN

AS COMPETITION IN NNY’S TIGHTENED RADIO MARKET INTENSIFIES, MAJOR BROADCASTERS BATTLE FOR LISTENERS, AD REVENUES

W

STORY BY LEAH BULETTI | PHOTOS BY JUSTIN SORENSEN

With the media landscape continually evolving as the pressures of digital multiply, players in the north country’s seemingly glutted radio market say they are thriving and pursuing new methods to deliver content and keep live, local radio viable into the future.

Only Stephens Media Group, which owns four stations in Watertown, three in Ogdensburg and another three in Massena—locally long-dominating country station WFRYFM Froggy 97, WCIZ-FM Classic Hits Z93, WTNY-AM 790 and WNER-AM 1410 ESPN radio — subscribes to ratings from Arbitron, the radio marketplace’s leading analytics company. It’s therefore difficult to characterize the marketplace in anything other than anecdotal evidence following spring 2010, the last time that full ratings were available for the main frequencies in Jefferson County, the largest retail and radio marketplace in Northern New York, though most Watertown-based stations broadcast well into Oswego County and up into Canada.

At that time, Froggy led the market with

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20.8 percent of average quarter-hour share for people ages 12 and older Monday through Sunday from 6 a.m. to midnight. The Border, WBDR-FM 106.7, which is owned by rapidly expanding Community Broadcasters, was in second with 16 percent. Z93 had 7.2 percent, while Community Broadcasters’ rock station WOTT-FM 94.1 and adult contemporary station WTOJ-FM 103.1 came next with 6.4 and 5.6 shares, respectively.

Standalone station Tunes 92.5 WBLHFM, which emerged on the Watertown scene in 2008 and has since had notable success and growth with its variety format, had 3.2 percent as of those rankings and consistently remains in the top 10 frequencies in the market, said general manager Timothy P. Sweeney.

Community Broadcasters co-owner Bruce J. Mittman, a Boston ad executive, said he believes Community Broadcasters’ stations capture about 50 percent of the marketplace in certain demographics currently, although that figure cannot be externally verified.

A BATTLE FOR COUNTRY LISTENERS

Things began to heat up last September when Community Broadcasters, which longtime radio man James L. Leven owns with Mr. Mittman, switched the format of WEFX-FM 100.7 “The Fox,” which had only 2.4 percent in spring 2010 rankings, from classic rock to New Country,100.7 “The Eagle.” By spring 2013, Arbitron ratings show that Froggy 97’s share fell to 19.8 from a high of 24.5 in spring of 2012.

In evidence of the fact that Community Broadcasters did lose something in the shift, though, Stephens Media’s Z93 increased its share from 7.1 in fall 2011 to 9 percent in spring 2013.

Mark F. Gaines, general manager at Stephens Media, said he believes Community Broadcasters’ cumulative listenership went down “considerably” following the switch, but that Stephens did lose some listeners as they “had to come from somewhere.”

Mr. Leven said he “wholeheartedly” disagrees with the assertion that Community Broadcasters’ listenership declined following the shift, stating that its

Kevin Keefe is a station manager for Watertownbased Community Broadcasters. Despite a seemingly tight market, Northern New York’s radio industry appears to be thriving as competition heats up.

September 2013 | NNY Business

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COVER STORY Dialed in for listeners: A timeline of radio in NNY 1922 n St. Lawrence University pioneers radio in the north country with WCAD, today called KSLU, which was one of the first college radio stations in America and originally broadcast from the Gunnison Memorial Chapel. Ogdensburg follows with WSLB, which begins broadcasting in 1940 as the Mutual Broadcasting System affiliate, and is today the affiliate of ESPN radio for St. Lawrence County, owned by Community Broadcasters.

FEB. 3, 1941 n Watertown’s first radio station, WATN, starts transmitting. It broadcasts from the top floor of the Northern New York Trust Co. building, 118 Washington St. The station comes under the ownership of Watertown Broadcasting Corp., with G. Harry Righter as president.

APRIL 29, 1941 n Harold B. Johnson, editor of the Watertown Daily Times, introduces WWNY radio to the north country, the fourth commercial radio station to broadcast over the airwaves of Jefferson and St. Lawrence counties. About 150 people attend the premier broadcast in the Hotel Woodruff ballroom. The hotel’s orchestra, directed by Bob O’Hara, opens the show with “LaPaloma” and a 38-voice male chorus performs under the direction of Charles N. Burmaster. The station has a power of 500 watts, operates on a frequency of 1300 kilocycles and broadcasts only from sunrise to sunset.

DECEMBER 1941 n FCC allows WWNY to extend broadcast hours into the night, increase power to 1,000 watts and have a frequency of 790 kilocycles.

MARCH 1, 1943 n WWNY becomes an affiliate of Columbia Broadcasting System. The station’s local news is transmitted from the WDT newsroom on Arcade Street in Watertown.

1948 n WWNY initiates an FM station, which continues to operate into the 1950s but becomes extinct because not enough people own FM sets.

OCT. 21, 1959 n WATN is “forced from the air” by Northern New York Trust Co., according to an announcement from Mr. Righter. The Trust company officials say they had given him 11 months’ notice that they needed him to relocate because they need the space the radio station occupied.

APRIL 13, 1962 n WATN signals start broadcasting from 199 Wealtha Ave., which is still the station’s address today though ownership has changed multiple times.

JANUARY 1977 n David R. Atwood, then 32, arrives in Boonville to manage WBRV-AM, which he later buys. He also creates WLLG-FM 99.3 and WBRV-AM 900.

JUNE 1978 n The Watertown Daily Times separates from WWNY radio, Massena sister station WMSA and WWNY-TV after an FCC ruling.

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audience is “incredibly active and much larger than before.”

“We compete with Stephens Media and they compete with us,” Mr. Leven said.

“Strategically it was the right idea.”

The switch, he added, has been “tremendously successful,” beyond what he had thought the station would do. The Eagle is also “really very different radio than Froggy,” he added.

“I have nothing but praise for my competitor, but we’re hipper, more up tempo, much more hit-oriented,” he said. “Froggy has one way of doing country and we another.

Frankly, for country listeners, it’s a huge win because they have two stations to listen to and I think they love our station. In fact, I know they love our station because we have lots of anecdotal evidence to point to that.”

Mr. Mittman, who travels to Watertown about once a month, said Community Broadcasters wasn’t getting the kind of “ratings and visibility” it wanted from 100.7 as a classic hits station. “[The Fox] was a good-sounding station, but it didn’t seem to fit a niche,” he said.

“There’s a huge audience for country in Watertown and we thought we should have a signal that competed in that arena.”

Community Broadcasters, which employs 22 to 25 people between its Watertown and Ogdensburg offices, has subscribed to Arbitron for the rating period that will end in early December; its stations will be available in ratings in January, Mr. Leven said. He said his purchase of seven new frequencies in the Elmira-Corning and Olean, New York, markets, a deal he closed on in late August, made joining Arbitron feasible.

“With the size and the scope of our business growing, we could talk to Arbitron differently than we could as a single couple of operators,” Mr. Leven said. Among prior holdings, Mr. Leven owned four frequencies in Syracuse, which he sold in 2000.

While it remains to be seen what those rankings will reveal, for now Mr. Gaines believes that Froggy is still on top, despite July layoffs of two employees in Watertown and one in Massena that Mr. Gaines attributed to routine needs to “tighten up on the expense side.”

“If Community Broadcasters had the No. 1 station in town, it would behoove them to buy [Arbitron ratings] for agency business,” Mr. Gaines said.

Stephens Media, which has 22 employees in its Watertown office and another 20 combined in its north markets, owns three stations in Rochester in addition to its 10 in the north country and five in Tulsa, Okla., where it is corporately based.

At Tunes 92.5, focus on a variety format

has enabled the station to avoid the fray of the country music battle. Mr. Sweeney said there’s no denying that country is a “giant format” in the area but that Tunes’ format enables the station to stand out in the marketplace and keep itself current with how people find new music today.

“People are definitely listening to more and more different types of music than they ever have before,” he said. “As long as that trend continues, we will become more and more relevant and become more and more the place to find it out if you’re looking to hear it on a local level. We’re really the one that I think is lined up to be able to continue to deliver a product that no one else can in this area anyway.”

So-called “jack-or-variety” formats are one of the fastest growing formats nationwide, he said, and Tunes 92.5 has diversified in the five years it has been on the air — starting with the 70s, 80s, 90s and today and getting “really obscure since then,” Mr. Sweeney said. While most stations have a repertoire of about 300 to 600 songs, Tunes has about 3,000, he said, spanning music from the 50s to today’s electronic dance music, like Skrillex.

The strategy has been successful with

COVER STORY Dialed in for listeners: A timeline of radio in NNY LATE 1978 n Inter-County Broadcasting Corp. purchases WATN from Mr. Righter’s group. The new ownership tries to attract more young listeners and changes the station’s country-western format to pop music. It allows disk jockey Bill Tinsley to stay on the air 24 hours a day, a mark for the Guinness Book of Records in 1979.

FEB. 14, 1980 n WWNY radio is sold for $455,000 to McCaffrey and McCall Inc., a New York City advertising company. WMSA of Massena is packaged in the deal.

Timpthy P. Sweeney is the general manager for WBLH-FM Tunes 92.5, Watertown, a standalone FM station in a market dominated by conglomerates that operate multiple frequencies.

businesses because the station has something that both younger and older crowds can relate to, and that can be played in virtually all types of businesses from restaurants to clothing stores, said senior account representative Melissa R. Aulet.

“We have a little something for everyone, it’s not just one genre of music and one person listening,” she said.

Mr. Sweeney said the popularity of jack or variety formats are a result of the way technology is moving; like Spotify and other streaming services, his station’s format is simply trying to keep up with how people are discovering new music.

“It’s not mimicking, it’s keeping ourselves current,” Mr. Sweeney said.

According to a joint study published by Arbitron and Edison Research, “Infinite Dial: Navigating Digital Platforms,” based on data collected in January and February 2013, more than seven in ten 12 to 24-yearolds learn about new music from AM/ FM radio (72 percent of a base population of those saying it is “very important” or “somewhat important” to learn about and keep up-to-date with new music). Spotify came in last on the list, with only 13 percent, while Pandora was 58 percent.

Mr. Gaines said it is important that Stephens Media maintains a separate niche and that the company’s stations have consistently high “Time Spent Listening” numbers, data that Arbitron collects.

“We can’t be everything to everybody,” Mr. Gaines said. “When you look at our TSL of our stations it’s very high … because people want that niche. If we’re able to provide that niche that they’re looking for and keep a cumulative high, I think we’ve been successful.”

INDEPENDENCE VERSUS STRENGTH IN NUMBERS

Tunes 92.5 is run by Intrepid Broadcasting and owned by Magnum Broadcasting, which is based in State College, Pa., and owns five frequencies in that market. Mr. Sweeney believes that being a standalone station can be an advantage in that it has instilled in the station the importance of needing to succeed with every client it interacts with since they cannot, say, offer a client airtime on 16 different stations.

The station has what Mr. Sweeney calls an “open door policy” of inviting in businesses and helping disseminate their message regardless of budget.

“We care about your business and

JUNE 31, 1980 n 790 on the AM dial is occupied by WTNY radio.

1984 n APA Communications takes over the operation of WATN and introduces an FM sister station, WTOJ. SEPTEMBER 1986 n WTNY introduces sister station T93 on the FM dial.

MARCH 1988 n WATN-WTOJ is sold to Clancy-Mance Communications, Inc. for $1.6 million plus an additional $75,000 to acquire its assets from APA Communications.

1995 n Forever Broadcasting purchases WTNY-AM, WTNY-FM (Froggy’s predecessor), WMSA-AM in Massena and WIBX and WLZW in Utica for $5.6 million from Black River Broadcasting.

1996 n Forever buys WCIZ and WNCQ-AM (predecessor of WUZZ), for $2.8 million.

1997 n Forever changes T-93, a top-40 hits station that captured first place in the ratings for 10 years, into Froggy 97, which has been the top-rated station in Watertown since its first ratings period.

JANUARY 1997 n David W. Mance and partner John C. Clancy buy WWLF (106.7) for $530,000 from Ezra S. “Ted” Ford. With the sale, Mr. Mance and Mr. Clancy own four stations in the Watertown market: WWLF, WTOJ-FM, WLKC-FM and WATN-AM. SEPTEMBER 1998 n Three Lowville and Boonville radio stations— WLLG-FM, WBRV-FM and WBRV-AM—are sold to a Boonville couple, William R. and Sara L. Flack under The Flack Broadcasting Group LLC. FEBRUARY 2000 Regent Broadcasting of Covington, Ky. purchases WTNY, along with Froggy 97, WCIZ-FM 93.3 and WNER-AM 1410 from Forever Broadcasting, Augusta, Ga., for $345,000.

AUGUST 2001 WTNY-AM 790 completes construction of a new tower off Ives Street Road and gets a new transmitter for a project cost of about $200,000.

Regents also gets WNER a newer transmitter and moves it from a tower it leases of Gifford Street to the tower off Ives Street Road.

September 2013 | NNY Business

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COVER STORY

Mark F. Gaines is general manager of Stephens Media’s Northern New York properties. Stephens Media is corporately based in Tulsa, Okla., and operates its flagship Froggy 97 from Watertown.

we want to help you grow it,” Mr. Sweeney said. “We’re always finding new and innovative ways of doing it.”

“I can see why logically someone would like to have a presence on 90 stations but because of the nature of our product, the nature of being able to play a huge variety of

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music that no one else does, we’re also going out to a large number of people who you don’t have with other stations,” he said.

While Mr. Sweeney said the station might be “still relatively the new guys in town,” he said it has been established long enough that “we’re not tucking our tail between

our legs and going anywhere”; in the radio industry, if a station isn’t going to work out, it’s usually apparent within six months or a year, he said. The station is also having the most profitable last few years it’s ever had, he said. It currently employs about six people and is hoping to hire another two by the start of the new year.

“We’re pretty satisfied because we’ve never gone down, just steadily gotten a little bit bigger and little bit better every day,” he said.

And even if Tunes is considered somewhat of an underdog, “it’s a great place to be because you only have one place to go and it’s up,” he said, adding that he thinks many people like and identify with someone “doing their own thing” as Tunes has had the freedom to do.

“We are working with businesses and we are involved with events and we are putting out copious amounts of announcements for the community in a way that we never would have been able to have done in 2008.

Certainly we’re established and sitting down with outfits that our competition is every single day and in fact we’re beating them out for a lot of them,” he said.

His competitors, though, say there is strength in numbers.

Mr. Leven said the seven new stations will “add to our ability to serve all four communities.”

“We’ll have double the resources, double the people working in the community, double the number of ideas that we can create to help the communities we serve,” he said.

Neither will the expansion dilute Community Broadcasters’ mission to be “an integral part of the communities in which we broadcast,” Mr. Leven said, adding that though he may not be present in the Watertown office, he will be in the area every week and continue serving on various charitable boards. He currently serves on the board of the Jefferson Community College Foundation, Family Counseling Service of Northern New York, American Red Cross of Northern New York and the Greater Watertown-North Country Chamber of Commerce.

“We see a tremendous opportunity for growth in upstate New York and also geographic synergy in that if we have an advertiser who has stores or offices in each of our markets, we can better serve them,” he said of the decision to acquire the new stations.

Mr. Gaines agreed that having multiple stations is a “huge advantage,” notably in providing more options to advertisers.

COVER STORY “If you go to a group that has just one station, that’s it for your purchase,” he said.

“It’s easier to put together a marketing plan with a group and an individual.”

The one thing that may be static about the Watertown market is ownership, due to Federal Communications Commission guidelines.

“I don’t see any changes on the horizon in terms of ownership,” Mr. Gaines said.

While Mr. Mittman said he believes Community Broadcasters is at its limit in the Watertown market as dictated by the FCC, Mr. Leven said he is “not certain” that’s true, but “if we aren’t at our limit, we’re very close.”

Kevin Keefe, station manager of the Watertown office of Community Broadcasters who worked at the company’s Ogdensburg office for a year before moving to Watertown last October, said there’s a “very healthy competition” in the St. Lawrence market as well. The biggest differences between the two markets are taste and the fact that the Watertown market receives more attention from national advertisers, changing the volume and pace of business.

In Watertown, competition is also not necessarily with other media, but with outlets like direct mail, yellow pages and search engine marketing, he said.

STREAMING AHEAD TO NEW METHODS OF DELIVERY

In the spirit of “continuing to keep radio as a relevant medium,” Tunes 92.5 began streaming about four months ago on Tunes925Live.com, keeping on the station’s theme of continually finding new and unique ways for the listener to interact with the station, Mr. Sweeney said.

“The stream has been a huge, huge success for us,” he said. The station hasn’t yet delved into analytics for the stream, but Mr. Sweeney said listeners from Ireland

and England to California and Florida have tuned in.

The stream is similar to Pandora, in that listeners can vote on a song, view sponsors and link to their Facebook page to interact and make requests of the station, Ms. Aulet said.

Tunes 92.5 also has an app for the stream in the form of a website bookmark, and is working to develop one that would be available in app stores.

The station also has a big screen TV in its studio in the J.B. Wise Plaza to facilitate interaction with listeners, who can make requests that instantly pop up on the screen, like or dislike songs or tell the station about community events in what Mr. Sweeney called an “instant access scenario.”

Community Broadcasters does not yet stream any of its stations, though Mr. Leven said his comment was “stay tuned” on that front; one of the stations he purchased in the Elmira market already has a stream. Mr. Mittman said streaming is costly because radio does not have a revenue model built into streaming like Pandora and similar services.

Stephens Media has been streaming its Watertown FM stations since 2005, Mr. Gaines said, and plans to launch a mobile app within the next few months. The company is also in the process of changing its audio player to create an audio player page that “basically acts as a website,” integrating users’ social media accounts, which Mr. Gaines said should be completed within the month. Stephens Media does not stream either of its AM frequencies due to propriety issues with syndicated programs.

Still, Mr. Gaines said streaming remains secondary to on-air listening; something he believes could change with the launch of apps. While country music attracts listeners in demographics across the board, the stream likely targets those

Dialed in for listeners: A timeline of radio in NNY NOVEMBER 2002 n The Wireless Works sells for $1.45 million the three stations it operates in St. Lawrence County (WSLB-AM, WPAC-FM and WGIX-FM) to Radio Broadcast Center, which owns five stations in Jefferson County serving the Watertown area (WATN-AM, WTOJ-FM, WOTT-FM, WBDI-FM and WBDR-FM) and two in Delaware County. David W. Mance is the company’s president and CEO. JULY 2006 n Clancy-Mance Communications, Watertown, sells seven north country station to Community Broadcasters LCC owned by Bruce J. Mittman and James L. Leven.

OCTOBER 2007 n KXOJ Inc., of Tulsa, Okla. announces the purchase of four Watertown stations owned by Regent Communications, Cincinnati, Ohio, for $6.25 million and six stations in St. Lawrence County owned by Martz Communications Group, Malone, for $5.1 million, launching Stephens Media Group.

JUNE 2008 n WBLH 92.5 FM begins broadcasting after State College, Pa.-based Magnum Broadcasting buys station’s license from Radioactive LCC for $210,000. There is no building or tower and the media group builds the station from ground up.

SEPTEMBER 2012 n Community Broadcasters changes the format of WEFX-FM 100.7 “The Fox” from classic hits to 100.7 “The Eagle,” a new country station.

AUGUST 2013 n Community Broadcasters purchases seven stations in the Elmira-Corning and Olean upstate New York markets. The stations are: WNKI-FM 106.1 hit music (Elmira-Corning), WNGZ-FM 104.9 classic rock (Elmira-Corning), WPGI-FM 100.9 country (Elmira-Corning), WWLZ-AM 820 news talk/sports (Elmira-Corning), WRCE-AM 1490 simulcast WNGZ 880 classic rock (ElmiraCorning), WPIG-FM 95.7 country (Olean) and WHDL-AM 1450 oldies (Olean).

— Compiled by Leah Buletti

September 2013 | NNY Business

| 23

COVER STORY in the 25-to-64 age bracket, he said. Stephens does track analytics of the stream, and Mr. Gaines said “several hundred” people are streaming Froggy at any given quarter hour, and though that number has increased since it launched, it might not be an entirely accurate depiction of the stream given that someone could be listening in a car on the way to work and then start streaming once there.

According to the Infinite Dial report, about 33 percent of the total population 12 and older — 86 million people — have

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NNY Business | September 2013

listened to online radio in the past week.

Of those, however, 82 percent have also listened to AM/FM radio in the past week.

Only 9 percent of smartphone owners have downloaded an app for AM/FM radio, while 45 percent have downloaded the Pandora app, 15 percent the iHeartRadio app and 6 percent Spotify.

‘YOUR BEST FRIEND SITTING NEXT TO YOU’

Despite differences in opinions on the best strategy to attract and retain listeners, all of

the marketplace’s stations seem to agree on one thing: radio as a medium, particularly local radio in which listeners get attached to particular jocks, is vibrant and here to stay.

The Infinite Dial report estimated radio’s reach at 243 million weekly listeners in 2013, up from 223 million 10 years prior.

“Radio will always be in the marketplace, with the added component of digital,” Mr. Gaines said. “It will just be delivered differently and available in different areas.”

Mr. Sweeney attributes radio’s buoyancy

Please see Radio, page 26

Insurance

September 2013 | NNY Business

| 25

Automotive

COVER STORY RADIO, from page 24 to the medium’s ability to continually reinvent itself and the fact that listeners forge an emotional connection with a radio station unlike people do with print media or TV. That connection has “directly to do with the music you’re playing, the people you’re connecting with, the types of talent you have on” and your interactions with the community, he said. He also thinks the fact that radio is free to consumers goes a long way to ensure its place in the market; renewal rates for satellite radio subscriptions usually plummet after a year or two, he said.

“People like hearing about what is going on in the community, and they also like not being charged for it,” he said. Radio is among the only form of media that “continues to provide more content for no extra price.”

And radio continues to be the place to discover new music.

“Radio is by far, by 100 percent over the nearest competitor, the biggest place for music discovery,” Mr. Leven said. “If you want to have a hit, you have to be on the radio. I don’t see that changing.”

Likening radio to “your best friend sitting next to you with his arm around you on the couch, telling you what’s going on, entertaining you, playing your favorite music,” Mr. Leven called radio a “very personal form of communication” that other technologies can’t imitate.

“No other medium can do what radio can,” he said. “The magic of radio hasn’t changed.”

Mr. Keefe also said that coming from stations owned by a large corporate chain in Syracuse, where there was no personal connection to top executives, local ownership provides the benefit of instant turnaround time with ideas.

“I think it’s really nice to have local ownership and have Jim be the face of the company,” he said. With a local face to run into in town, customers know who they’re doing business with and have “faith and trust that [the company] is invested in the community.”

That local connection to a particular personality is key, Mr. Keefe said.

“People tend to own a format, take ownership of it,” he said. “The music station they play reflects who they are. People are going to be attracted to personalities of stations, and local content as well. Local radio is still going to be very viable for a long time.” n LEAH BULETTI is a staff writer for NNY Magazines. Contact her at lbuletti@wdt.net or 661-2381.

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September 2013 | NNY Business

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MEDIA

Inside the studios of WRVO, which is affiliated with National Public Radio and based on the SUNY Oswego campus.

The public media’s stations include WRVH Clayton 89.3, WRVO Oswego/ Syracuse 89.9 FM and WRVJ Watertown 91.7 FM. COURTESY WRVO PUBLIC RADIO

Public radio thriving

Network of 8,000 contributors enables WRVO to expand

By REBECCA MADDEN NNY Business

I

f you tune into public radio, you won’t hear a Top 10 countdown of contemporary hits or Taylor Swift’s latest break-up ballad.

It’s news radio, and what you get is information, education and inspiration, which has also been the mission of WRVO since it went on the air in 1969.

Headquarted on the SUNY Oswego campus, where it is also licensed, its airwaves travel north, south and east of the waves of Lake Ontario.

“WRVO regularly holds community forums that bring experts together with members of the public to discuss pressing issues,” said Michael S. Ameigh, general manager. “And, at any given time we have at least six regional reporters in the field collecting news and feature stories.”

Programming has ranged from world

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NNY Business | September 2013

news, business, politics and features, for which more than 120,000 people have tuned in on the public media’s 10 stations throughout 20 counties. They include WRVH Clayton 89.3 FM, WRVO Oswego/Syracuse 89.9 FM, WRVJ Watertown 91.7 FM and other stations in Syracuse, Utica, Cortland, Ithaca, Hamilton and Norwich. Three program streams are online at WRVO’s website.

Mr. Ameigh said WRVO, a part of the National Public Radio network, has been able to add programs and stations throughout the past 44 years because of support received from SUNY Oswego, and financial support from its listeners, businesses and organizations, foundations and other entities.

WRVO has about 8,000 active contributors, and its programming bill runs to nearly $750,000 annually. That is all paid for by contributors; both listeners and businesses and organizations that under-

write specific programs.

As a nonprofit organization, any revenue is reinvested in programming and technical support, Mr. Ameigh said.

Financial support has enabled WRVO to transition from its original 10-watt radio station to its present output of 50,000 watts. Clayton’s station went on air just over a year ago, and is the public media’s second most powerful transmitter at nearly 8,000 watts.

Mr. Ameigh said the growth of local public radio is due in part to growth of partnerships with North Country Public Radio and stations in Rochester, Binghamton, Buffalo and Albany. Collectively, public radio has provided regional news and public affairs coverage, he said, and local news offered through a shared north country reporter.

“We are investing resources in the north country to improve signal strength in the Thousand Islands region to serve

MEDIA Public radio / stations

WRVO Oswego/Syracuse 89.9 FM WRVD Syracuse 90.3 FM WRVH Clayton 89.3 FM WRVJ Watertown 91.7 FM WRVN Utica 91.9 FM WSUC Cortland 90.5 FM Geneva 90.7 FM Hamilton 90.1 FM Ithaca 92.5 FM Norwich 89.9 FM Online at WRVO.org

the broader community in that region,” Mr. Ameigh said.

An expansion of north country listeners will also coincide with expansion of developing tools to allow listeners to tune in on iPhones, iPads and other digital players.

“We see that as an important new service going forward,” Mr. Ameigh said.

That way, some of the more popular programs, such as NPR’s Morning Edition, All Things Considered, The Diane Rehm Show and Car Talk may be provided to on-the-go to an audience that is educated and affluent, according to demographic data, Mr. Ameigh said.

Most listeners, he said, are between the ages of 34 and 65, with slightly more women tuning in than men.

Meanwhile, North Country Public Radio, which was granted its first broadcast license to operate a 100-watt transmitter in 1922 on the St. Lawrence University campus in Canton, has also blossomed into a large, public network.

According to its website, NCPR now operates a network of 32 transmitters, which broadcast programming throughout the north country, Adirondacks, western Vermont and southeastern Ontario.

Information from both stations may be found online at www.northcountrypublicradio.org and www.wrvo.org. n REBECCA MADDEN is a Johnsons Newspapers staff writer. Contact her at rmadden@wdt.net or 661-2375.

September 2013 | NNY Business

| 29

TECHNOLOGY

Hip to be Square

Mobile payment processing taking off in north country

By LEAH BULETTI

I

NNY Business

t’s not just cash that may have met its demise; it’s the traditional cash register. Mobile app technology, such as Square, that enables businesses to accept credit or debit card payments on the go from a smartphone or tablet are catching on with north country businesses from farmers market and craft vendors to brick and mortar stores.

The first iteration of Square, the first app on the mobile payment scene and the brainchild of one of Twitter’s founders Jack Dorsey, launched in 2010.

Square provides a free small plastic device, Square Reader, for running credit or debit cards that plugs into the headphone jack of a smartphone or tablet on both iOS and Android operating systems. Square Register enables a business to have its entire point of sale system run through it and has the interface of a traditional cash register.

Square charges a flat fee of $2.75 per transaction. Businesses also have the option of paying a flat $275 per month with zero itemized fees.

“I have certainly noticed it becoming more prevalent in our area,” Scott M. Pooler, Vice President and Chief Information Officer of Watertown Savings Bank, said of mobile payment technology, noting that Staples has a large display of various types of readers.

Banks cannot track the number of north country businesses using the technology because the transactions appear analogous to all other electronic transactions.

Sarah C. O’Connell, an advi-

30 |

sor at the Small Business Development Center in Watertown, said that many of her clients talk about using mobile app technology, “if not Square than other ones out there.”

Bank of America recently launched a mobile card reader, undercutting Square with a 2.7 percent per swipe rate. Visa, PayPal, Intuit and Groupon have also launched their own versions of Square.

Mrs. O’Connell advises business owners who don’t accept credit or debit cards to be aware that most people today will expect them to.

“Some people are still cautious of the technology, so we don’t necessarily push them one way or the other, just what they’re most comfortable with,” she said.

At Vito’s Gourmet on the Public Square, owner Todd V. Tarzia has his entire point of sale run through Square on two iPads that have entirely eclipsed the traditional cash register. Mr. Tarzia said he was about to sign merchant services paperwork with Bank of America prior to his November opening when he read an article in Time magazine about Square. After some research, he found it “wonderful, simple and easy to understand” compared to the “extremely complicated” rate system offered by the bank. He estimated that it only took him about two hours to log his menu with Square, and can modify prices or add additional items within minutes.

“It got so busy that we immediately needed a second iPad,” he said, adding that he was also attracted to Square because he “wanted the look of the terminals”—the upscale, hip feel that pervades the

NNY Business | September 2013

Matt Shaul of Cranberry Ridge Farm swipes a card using the Square app during the Greater WatertownNorth County Chamber of Commerce Farm and Craft Market in downtown Watertown.

More vendors are using mobile payment devices like Square to boost customer convenience.

NORM JOHNSTON | NNY BUSINESS

Square’s newest eatery.

Square was also economically feasible: Mr. Tarzia spent about $850 on the equipment broken down between $399 for the iPad, $100 for the cash drawer, $150 for the iPad stand and $200 for the receipt printer. (The second iPad was a birthday gift). The cheapest point of sale system is typically about $1,500, excluding the cost of leasing a printer, which typically costs about $50 per month, he said.

Though he might be paying more or less than the bank’s rate for certain items, the simplicity of the flat fee far outweighs dealing with the complexity of bank’s merchant services, Mr. Tarzia said.

He added that many customers are “enthused” about his iPad setup and that only one has been “very vocal” about not patronizing Vito’s again because of his concern that Square transmits credit and debit card

information over the Internet.

Mr. Tarzia said about half of traditional credit card services transmit customer information over the Internet, while the rest use phone lines.

Mr. Tarzia said about half of his customers each day pay by card. Every customer has the option of getting a paper receipt or having it emailed or texted to them. If a customer would like the receipt emailed or texted, an employee has to enter the address or phone number, data that Square saves such that it doesn’t need to be entered again for repeat customers. Mr. Tarzia said “quite a few” of his customers opt for the electronic receipt, which he likes because of the savings from not using the printer.

He also likes the fact that Square sends a daily email about the prior day’s sales and “by 6:30 a.m. the money is in my bank account.” This is particu-

TECHNOLOGY larly helpful for small businesses that aren’t taking in large quantities of money but need to continually meet payroll and other expenses, Mr. Tarzia said. With traditional bank credit card services, it can take two to three days for money to be deposited.

He also uses Square Dashboard, which provides a breakdown of sale revenue by day, week or month. Additional spreadsheets give breakdowns by item. Mr. Tarzia said he checks this data once a week. He also has Square on his smartphone, so if he leaves early, he can monitor what time employees made the last sale and ensure they haven’t closed before 3 p.m.

Mr. Tarzia added that he thinks Square and similar services are catching on in the north country, but said it’s possible that more stores haven’t yet adopted it because many banks require businesses to sign contracts of up to three years.

“I don’t know why anybody would use anything else,” he said of Square. “Any restaurant could use it.”

Lisa Nortz, owner of Silver Bench Jewelry, a handmade sterling silver jewelry business that she operates out of her home in Croghan, started using Square in December 2011 after her son, who was in business with her at the time, “was raving” about the Square Reader he got for his tablet. She had also become “fed up with the credit card companies and all the fees.”

“I absolutely love it,” she said. “I love the fact that there is only a swipe fee. The amount I saved by not paying all the fees now pays my smartphone bill.”

Mrs. Nortz uses Square on her Android phone rather than a tablet, as that would be “one more thing to carry around.” She used a device for accepting credit and debit card payments on a phone for about five years, but she could not use the phone as a cell phone and said the fees associated with it, including a monthly bill for the phone and $12 to get a statement mailed, “went on and on,” sometimes reaching $80 to 90 a month before fees on purchases. She said she ran into several other merchants who were using Square and were pleased.

“I’m a real tight wad, but I saw how easy it was and how little it cost,” she said. “It’s such a good tool and it’s just a tiny little thing, it’s not like it’s a machine you have to carry around.”

Mrs. Nortz hasn’t invested in a printer (she spent $180 on a printer for her previous card reader) so she offers to text or email receipts, which she said only about 10 percent of customers choose; she gives hand-written receipts to the rest. She also uses the app on her home computer to see what people have been buying and how they pay; most of her sales are now made by card, she said.

Mrs. Nortz agreed with Mr. Tarzia on the convenience of Square’s instant fee deduction.

“With Square, if I made $1,000 today, it’s already deducted—I don’t have to do anything,” she said. “I think that’s really nice, I only get what’s mine.”

And she believes that Square and similar apps are catching on in the north country “more and more.” She spent a recent Saturday helping a fellow merchant set up Square to calculate different sales tax rates depending on the county.

Square recently launched Square Market, an online store that lets merchants use its interface to sell online rather than creating their own website. Mrs. Nortz, who has been selling online for several years, said she still only does about 10 percent of sales that way; her website and Facebook page serve primarily to drive people to her studio or the gift shop in Lowville where she rents a case or to find her at a craft fair. Mrs. Nortz said she wasn’t sure that she would need Square Market given her existing online presence, but would probably look into it more in the winter when business slows down.

Mary M. Corriveau, vice president of corporate membership for the Northern New York-Fort Drum Chapter of AUSA, said the organization ordered two Square Readers in

June to use on an iPhone and iPad that the organization already owned. She estimates the chapter could probably use the readers six to seven times a year.

Prior to getting Square, AUSA accepted membership payments by cash or check or entered card information by hand on a paper application.

“People are more willing to have someone scan a card than give the data,” she said.

Mrs. Corriveau first used Square at Riverfest in late June in Alexandria Bay, and sold about 25 memberships with it, two thirds of the total number sold. At Mountainfest at Fort Drum, the second time AUSA used it, all of the memberships sold were through Square.

For some smaller operations, including several local personal trainers and part-time vendors who said they did not accept credit cards, the technology is not as feasible.

“I’ve thought about it. I might at some point,” said Brian M. Doxtater, who owns Doxtater’s Bakery in Evans Mills and sells regularly at the Wednesday farmers market in Watertown. Since most of the products he sells at the market cost between $1.50 and $4.00, Mr. Doxtater said “people aren’t shocked” that he doesn’t accept

Please see Square, page 59

September 2013 | NNY Business

| 31

E D U C AT I O N

Closing the skills gap

BOCES joins manufacturers to launch 20-week course

By LEAH BULETTI

T

NNY Business

he Jefferson-Lewis Board of Cooperative Educational Services has partnered with north country manufacturers and economic officials to launch a 20-week manufacturing technology course as early as this October to fill what the industry says is a growing skills gap for high-paying manufacturing jobs.

The idea for the course was born during a manufacturers summit in April 2011 when the biggest concern that arose among manufacturers was that the dearth of available employees with manufacturing skills would leave companies lacking when long-time employees retired, said Jefferson County Industrial Development Agency Deputy Director David J. Zembiec.

“I think a lot of people aren’t aware that there is a viable alternative — to pursue manufacturing or other trade skills as a career and make good money,” said Georgia D. Dusckas, supervisor of Adult and Continuing Education at BOCES. Manufacturers are starting to return to the U.S. as labor costs overseas increase, compounding the skills gap as programs to train workers have increasingly fallen by the wayside, spurred by a misconception of what manufacturing jobs are today — highly technical jobs that yield productive careers, said Cheryl M. Mayforth, executive director of the Workplace employment agency in Watertown.

“This is a real shift where even in our area where unemployment is still high, our manufacturers have recovered and we’ve seen an increase in employment in the manufacturing sector,” Mrs. Mayforth said.

Manufacturing is only 5 percent of Jefferson County’s workforce, but accounts for the county’s second largest export, making it a “major player” in the economy, she said.

According to the National Association of Manufacturers, 67 percent of manufacturers reported a moderate to severe shortage of available, qualified workers. The association reports that the annual average salary of manufacturing workers is slightly above $77,000, while the average entrylevel salary for manufacturing engineers is about $60,000.

New York state ranks sixth among states

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NNY Business | September 2013

PHOTO COURTESY BOCES

This Computer Numerical Control machine is used to manufactur a wide range of products today. It is similar to what the Jefferson-Lewis BOCES will provide training on for north country workers.

in total manufacturing employment; the upstate region, which includes the north country, ranks ahead of 28 states as a manufacturing location, based on employment, according to the Manufacturing Research Institute of New York State. The U.S. Census has also estimated that there will be about 120 job openings over the next two to five years for manufacturing in Jefferson County.

The BOCES course, which will consist of two, six-hour sessions per week of integrated classroom and hands-on lab instruction, will be delivered via a computerized “Virtual Training Environment,” which enables students to gain hands-on practice while saving on material costs. In addition to the flightsimulator technology, students will also have 24/7 access to the software so they can train and rehearse on the Computer Numerical Control machines prior to actually operating the equipment. The course will commence with math instruction, blueprint reading, precision measurement and speeds and feeds, before progressing to programming and hands-on projects on the mill and lathe.

BOCES has two CNC machines, which are housed at the Howard G. Sackett Technical Center in Glenfield, where an adult education course on machining was taught through the late 1990s. BOCES also has a mill and a lathe, which are used in its welding program, and will have two others donated by Current Applications, Watertown. BOCES is in the process of finding a relatively large facility to house the program, as the machines need specialized electrical and ventilation, as well as

work space around them, possibly around a 4,000 to 5,000-square-foot facility.

While some BOCES courses teach some of the skills the machine technology course covers — the welding program has a blueprint component and computer aided design teaches how to program a computer to make an object — there is not one cohesive course, said Tracy J. Gyoerkoe, director of career, technical, adult and continuing education.

Products that are CNC milled are becoming increasingly ubiquitous, encompassing not only the aerospace and automotive industries, but everyday objects like golf clubs, Ms. Dusckas said. The automation of tools began with the first numerically controlled machines built in the 1940s and 1950s. In today’s CNC systems, products are designed end-to-end beginning with computer-aided design and computer-aided manufacturing programs and later extracting commands to operate a machine and produce a particular product. The systems are used in processes including laser cutting, welding, gluing and sawing.

Robert A. Green, a quality, process and tool engineer at New York Air Brake, which has 13 CNC machines, said the term machinist often has negative connotations, conjuring up images of workers in cold or hot dingy, unlit buildings, doing oily, dirty work.

Mr. Green, who took a manufacturing technology course when it was offered at BOCES to high school students many years ago, said that because of the way technology has changed, his day now consists of programming the machines, designing cutting tools, using AutoCAD, working with design engineers, managing workers and much more. The days of just being a machinist, he said, are over.

“Companies expect more and they want you to be more than just a person who can drill a hole,” he said. “They want you to be able to manage the programs and back up the programs. It becomes a very technical job and you can take it as far as you want.”

For young people especially, who have grown up immersed in technology, machining becomes not only a “very interesting job or career path,” but a well-paid, stable job, Mr. Green said. “Our manufacturers are looking for so many skills—once these are learned, it opens up so many doors for anything else in the company.”

E D U C AT I O N Initially the program will be targeted to adult learners, but BOCES along with the JCIDA and the WIB plan to market it to guidance counselors and eventually offer it to young adults. BOCES discontinued the high school manufacturing technology program in the late 1980s as interest waned.

“We know that there is a bright future for people who have this skill and we’re hoping the adult program can be translated into interest for a high school program,” said District Superintendent Jack J. Boak Jr., adding that the career is a “very challenging area that requires upper level math and technical reading skills.”

The WIB has applied for grant funding for tuition assistance for the course under the state’s Regional Economic Development Council consolidated funding program and will know the outcome of its application in December. BOCES has also applied separately for a grant to buy equipment.

With a target of 20 students per class, the funding that WIB applied for would pay for about six long-term unemployed, about six from a low-income level and the rest adult and dislocated workers, who might already work for a manufacturer but at a lower-skill level. Some students would also be self-pay or funded through their employer, but Mrs. Mayforth said tuition assistance is “likely.”

Ms. Dusckas said some manufacturers would likely put employees who might not have high-level technical skills through the program as a job promotion, while others would like to see entry-level workers coming out of the program as new hires.

In either case, the program will provide a “stronger workforce for our local employers to draw from hiring”; many manufacturing employers are limited in their ability to expand by the availability of the workforce, Mr. Zembiec said.

Mr. Green said this is the case at Air Brake, where during growth in the past few years, the company had to hire employees off the street and train them on the job, which is time-consuming and expensive.

“We go through interview after interview after interview and there’s just not the skillset there to introduce them to the company immediately — not even the basic skills of blueprint reading and what not,” Mr. Green said.

Air Brake has estimated that it has about 50 job openings for students with the skills the BOCES course teaches. Jain Irrigation in Watertown has also estimated that is has about 26 openings for people with these skillsets.

Without grant funding, the course won’t be able to continue long-term, but if the applications are successful, the course will be offered in the spring, likely commencing in February, Mr. Zembiec said.

Several local companies are also contributing tools and scrap metal for the program, including Jain Irrigation, Current Applications, CEM Machine, NYAB and Taylor Concrete Products and Ms. Dusckas stressed that the curriculum is “employer driven.”

“A lot of effort went into listening to what employers need,” she said.

Once the course is offered for one or two sessions, BOCES intends to apply for New York State Apprenticeship approval. Manufacturing apprenticeship programs have left the area; gaining the certification would enable manufacturers to hire and promote machinists from within their company and increases productivity, functioning as an “in-house educational provider,” Ms. Dusckas said.

BOCES has already seen an interest from about five students, including Christopher Assimon of Syracuse. Mr. Assimon has a degree in finance and management from SUNY University at Albany and has been working for a general contractor doing carpentry work since he graduated.

Mr. Assimon said that he likes the idea of building and creating from an educational standpoint and said he has a good academic background from high school and college, but never received any counseling or guidance about the potential for a career in manufacturing; like many high students, he said, he was pushed to go into finance because of his aptitude for math.

“I value the work — it’s a good transition in terms of my previous educational background,” he said. The course will be an opportunity to “re-tool and re-focus” and become a “higher-skilled, more versatile employee.”

Mr. Assimon also anticipates that the program would enable him to forge contacts and get a job in the area.

“If you’re going to do labor, you want to do more high-skilled labor, which I think this course is geared to teach,” he said.

The course will provide students with a nationally recognized Haas CNC certificate and students will not need to transfer to a four-year school. Prospective students also do not need more than a tenth gradelevel math proficiency to enroll. Interested students can contact Adult Education at 779-7200. n LEAH BULETTI is a staff writer for NNY magazines. Contact her at lbuletti@wdt.net or 661-2381.

September 2013 | NNY Business

| 33

BANKING

Scott M. Pooler, chief information officer and vice president of Watertown Savings Bank, displays the bank’s new smartphone app, which allows customers to deposit checks by phone, as well as view account balances and complete other banking transactions.

JUSTIN SORENSEN | NNY BUSINESS

WSB goes mobile

Smartphone app enables checks deposits by phone

By LEAH BULETTI NNY Business

W

atertown Savings Bank late last month launched a mobile app, becoming among the first of north country community banks to offer customers the ability to deposit checks, check an account balance and complete other banking by smartphone.

The app is available in both the App Store and the Google Play store for use on iOS and Android operating systems.

Scott M. Pooler, WSB vice president and chief information officer, said the bank began developing the app in May after it invested in secure mobile banking software and customized it with WSB’s “name, look and logo.” Thousands of banks use similar products, branded for their specific bank; the company has expertise in security and makes a product that is simple and easy to use, Mr. Pooler said.

WSB’s president and CEO Mark R. Lavarnway described the app as a “big bank product with a small town appeal.”

“It’s the next step in the evolution of banking,” he said. “It’s another delivery

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NNY Business | September 2013

channel to provide a banking alternative to our ever-growing base of customers.”

Although WSB was getting “a lot of questions” from customers about mobile services, it didn’t launch the app to compete with other banks that offer similar services, but rather because it thought it was a service that customers could benefit from, Mr. Pooler said.

“We think it’s a great fit for what we do — another avenue for the customer to get to us,” he said.

In addition to depositing checks with a simple smartphone picture, the app has many of the same features as WSB’s online banking site, such as enabling customers to transfer funds, pay bills, set account alerts, check balances and check the history of cleared transactions. The app is integrated with the online site and “just in a format that is a little easier to get to” for customers who may be traveling or without access to a PC, Mr. Pooler said.

“It’s an alternate channel to be able to do banking, more of a lifestyle fit,” he said.

“Everybody is busy—we’re looking to provide a service that helps that busy person.”

While many people nowadays use direct deposit to avoid visits to the bank

for regular paychecks, Mr. Pooler said the deposit by mobile feature is aimed at greater convenience; customers won’t have to make special trips to the bank for random checks, such as rebates.

“We could have done without mobile deposit, but it made sense that if we were doing one piece, we might as well offer the entire package at once,” he said.

The bank launched its online banking site in 2005; Mr. Pooler said the app represents a “logical next step into the mobile arena,” especially since the advent of person-to-person payments is near.

“It sets the groundwork and framework for future enhancements to mobile work, wherever the technology takes it,” he said.

The app is available to all customers who already use WSB’s online banking site, which is about half of total customers and a number that “literally grows every day,” Mr. Lavarnway said. The app can be downloaded and set up without even coming into the bank, Mr. Pooler said.

Visit www.watertownsavingsbank.com to learn more. n LEAH BULETTI is a staff writer for NNY magazines. Contact her at lbuletti@wdt.net or 661-2381.

S T. L AW R E N C E C O U N T Y

Kelli K. Curran, sales and marketing manager for Curran Renewable Energy, stands in front of a silo that stores wood pellets at the Massena plant, which has become certified by the Pellet Fuels Institute for premium-grade wood pellets.

Below her are stacks of wood pellets ready for distribution.

JASON HUNTER | NNY BUSINESS

Premium in pellets

Curran Renewable earns Pellet Fuels Institute certification

By KATIE ANDERSON NNY Business

A

fter producing wood fuel pellets for five years, Curran Renewable Energy, 20 Commerce Drive, Massena, has become one of only two such mills in the country to be certified by the Pellet Fuels Institute for premium-grade wood pellets.

The institute uses a standard that the company follows in such areas as bulk density, diameter, durability, ash content, moisture and chlorides.

“We believe with the PFI certification and a standard that we know we can meet, our quality level will be exceptional and will help us grow to the capacity that we’re looking to be at,” said Patrick J. Curran, president and CEO of Curran Renewable Energy.

The plant is running at 70 percent of its full capacity, which Mr. Curran said is 100,000 tons of pellets annually.

“If you were to break that down to 4 tons per home, this plant at full capacity could

heat 25,000 homes,” he said. “And it’s all energy that’s coming from the forest right in everybody’s backyard. It’s not imported.”

Mr. Curran’s daughter, Kelli K. Curran, is the marketing and sales manager for the company. She said their sister company, Seaway Timber Harvesting Inc., 15121 Route 37, provides Curran Renewable with the wood chips that get turned into pellets.

“Seaway Timber Harvesting brings all the feedstock here, so we’re not using any recycled wood materials,” she said.

Mr. Curran said the PFI can send in an auditor at any given time to sample several bags of inventory, testing the products to ensure the company is keeping up with the certification’s guidelines.

“We realize that it’s going to add more work and more cost to doing what we’re doing, but we’re going to feel confident that every ton or 40-pound bag that we sell to the public will meet the desired specs of the PFI,” Mr. Curran said. The company received the certification late last month.

The five types of pellets produced at the plant are pure hardwood, pure softwood, a blend of 70 percent hardwood and 30 per-

cent softwood, pure pine and pure hickory.

Mr. Curran said 50 percent of his product is sold through Lowe’s, Home Depot and Tractor Supply Co., and the other 50 percent goes to stove shops. “All aspects are important to the company,” he said.

Mr. Curran said he has sold pellets as far east as Maine and as far west as Michigan.

New England Wood Pellet, Jaffrey, N.H., also was awarded the PFI’s certification.

Mr. Curran said that although not every company is certified, all are able to compete and sell their products. However, he said that as time goes on, the public will become more aware of the institute’s designation and will look for the standard on the bags they purchase.

“When a person is paying for his heat, he really wants to make sure that he’s getting what he’s paying for,” he said. “If we want this industry to grow, we have to provide the best product we possibly can, or this industry is just going to stop in its tracks.” n KATIE ANDERSON is a Johnson Newspapers staff writer. Contact her at kanderson @wdt.net or 661-2518.

September 2013 | NNY Business

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MILESTONES

William Tinsley, co-owner of the Apollo Restaurant, Watertown, holds a Meditarian pasta platter.

The Apollo celebrated 25 years in business in August.

JUSTIN SORENSEN | NNY BUSINESS

It’s all Greek at the Apollo

Family-owned restaurant marks 25 years in business

By LEAH BULETTI

W NNY Business

illiam Tinsley, owner of the Apollo Restaurant, a family-run fixture in the Watertown community for 25 years this August, credits his wife and business partner Michelle as well as a laser focus on consistency in service and quality food for much of the restaurant’s ongoing success.

“She is the fabric which holds our restaurant together,” Mr. Tinsley said.

“Without her it is unlikely our business would have ever reached the level of success it enjoys today.”

The Apollo, known for its large selection of authentic Greek food, opened in the summer of 1988 in the location it still occupies today in Watertown’s Price Chopper Plaza, originally under the ownership of Mr. Tinsley’s sister and her husband, who then passed on the reins to Mr. Tinsley’s nephew and his wife before Mr. Tinsley and his wife took over six years ago.

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NNY Business | September 2013

Mariana O. Hiotis, daughter of the original owner Constantino Hiotis and a student at Syracuse University, started bussing at the restaurant when she was about 14 and currently waitresses over breaks from school or as needed. She said the Apollo was her father’s “pride, joy and second marriage for 18 years; the restaurant continues to be a family-run business “in the true sense of the word,” she said.

“I grew up in that restaurant under the swinging kitchen doors to ask my daddy for something to eat to swinging those doors open myself to delivering my order to the cooks for someone else to eat,” Ms. Hiotis said. “It’s far more than just a restaurant to me; it’s a second home.”

The Tinsley family’s descendants came to America from Thessaloniki, Greece, a region known for culinary excellence, and many of The Apollo’s recipes draw on several generations of family traditions; although over the years the Apollo has adopted some American menu options, it makes nearly all of its food on premise, Mr. Tinsley said.

Variety is also key — the Apollo’s menu consists of more than 100 Greek and American dishes, including various sandwiches, burgers, gluten-free options and breakfast items. It also serves 14 different varieties of gyro sandwiches, the restaurant’s most popular item, though the traditional one made with a blend of beef and lamb, topped with shredded lettuce, tomatoes, onions and feta cheese and wrapped in a warm pita, is the biggest seller, Mr. Tinsley said.

The Apollo takes great pride in its Mousaka, the “national dish of Greece,” which is made on the premises and consists of layers of sautéed eggplant, potato, ground beef and béchamel, served with a topping of Apollo’s marinara sauce, Mr. Tinsley said.

Ms. Hiotis agreed, adding that the Mousaka takes the Apollo’s “passionate chefs to a whole new level producing something this delicious, time-consuming and authentic.”

Please see Apollo, page 59

R E A L E S TAT E R O U N D U P

Homeownership is not a tax loophole

T

here has been a lot of talk recently about various ways to reduce the deficit without raising taxes. One of the ideas is to eliminate the Mortgage Interest Deduction, the deduction that homeowners are allowed to take on a mortgage’s interest.

This is a bad idea for a number of reasons: n The MID is not a new tax deduction; it was introduced along with the income tax in 1913. The MID allows homeowners who itemize their taxes to deduct interest paid on mortgage debt up to $1 million interest on a primary residence and an additional home, and also interest paid on home equity debt up to $100,000. n Homeowners currently pay 80 to 90 percent of the federal income tax.

Eliminating the MID would increase the share homeowners pay to 95 percent.

Normally, nine out of 10 home buyers borrow money to purchase a home.

Housing-related tax provisions like the MID help people who don’t have hundreds of thousands of dollars in savings to buy a home outright, allowing them to begin building their future through homeownership.

It turns out that eliminating the MID would be a tax increase for a substantial number of homeowners, an increase that would fall heavily on middle and lower income families. Of the families who claim the MID, 63 percent earn less than $100,000 per year. Another 25 percent earn between $100,000 and $250,000.

Only 12 percent of the total is claimed by taxpayers earning $250,000 or more. Removing the MID will adversely affect the wealth of middle and lower income Lance Evans families and make it harder for them to achieve homeownership. Is focusing solely on tax rates a better goal than protecting the wealth of the middle class? n The MID can mean real savings for real families at tax time. If a family bought a house this year with a $200,000, 30-year fixed-rate mortgage with an interest rate of 4.5 percent, they could save nearly $3,500 in federal taxes when they file next year. Is it worth jeopardising home ownership considering the boost it brings to a community and the economy?

Homeownership promotes neighborhood stability, improves school performance and enhances family health.

Home sales also have various economic spin-offs; real estate transactions touch an estimated 84 different jobs and the equivalent of one job is generated for every two homes sold. Of course, this does not include the economic activity connected to ongoing home maintenance. n Reducing or eliminating the MID

could tip the economy into another recession. This is not the time to have more job losses or economic turmoil. The wealth of most middle class Americans is connected to their home. Millions of Americans bought their homes with the understanding that mortgage interest is tax deductible, and many of them have steadily paid down their mortgages to build equity in their home.

Eliminating or reducing the MID would destroy the hard-earned equity of all homeowners, regardless of tax status, which would in turn hurt the economic and societal spin-offs of homeownership.

The MID is an important part of the American dream of homeownership.

While you can imagine that Realtors and other real estate professionals are concerned about a possible elimination or reduction in the MID, a Harris Interactive survey of 3,000 homeowners and renters shows Americans agree: In the survey, nearly 75 percent of homeowners and 66 percent of renters said that the MID was extremely or very important to them.

Contact our elected officials — U.S. Rep. William L. Owens, D-Plattsburgh, or U.S. Sens. Charles Schumer and Kirsten E. Gillibrand — to get your voice heard on this issue. To learn more, visit www.houselogic.com and search “Mortgage Interest Deduction.” n LANCE M. EVANS is the executive officer of the Jefferson-Lewis Board of Realtors and the St. Lawrence County Board of Realtors.

He has lived in the north country since 1985.

Contact him at levans@nnymls.com. His column appears monthly.

September 2013 | NNY Business

| 37

R E A L E S TAT E

Despite dip, commercial sales steady Realtors: Tapering off not a definitive trend

By LEAH BULETTI

F

NNY Business

rom January to July this year, only five units of commercial and industrial real estate have been sold in Jefferson County, compared to 11 units during the same period in 2012, but north country real estate agents say the commercial market has been relatively steady in recent years and that the apparent tapering off isn’t evidence of a definitive trend.

In Lewis County, only one unit of commercial property has been sold in the same period of 2013, compared to three over that period in 2012. In St. Lawrence County, however, nine units have been sold in that period of 2013, compared to seven in 2012.

St. Lawrence County is also the only of the three counties to see the average price of commercial real estate increase over the six-month period, from $133,814 in 2012 to $159,055, with the range increasing from $15,000 to $400,000 in 2012 to $24,500 to $780,000 in 2013. In Jefferson County, the range over the six-month period shrunk from $20,500 to $730,000 in 2012 to $65,000 to $335,000 in 2013.

There about 153 commercial and industrial properties listed on NNYMLS.com, the multiple listing service maintained by the Jefferson-Lewis Board of Realtors, about 6 percent of the total 2,586 properties listed, compared to about 8 percent at the same point in 2012.

Jennifer Stevenson, president of the St. Lawrence County Board of Realtors and owner of Blue Heron Realty, said the “slight uptick” in St. Lawrence County could be attributed to the fact that St. Lawrence County is benefiting from the Canadian dollar right now, but said sales have not gone up considerably and averaged 20 sold in both 2011 and 2012, after a slump in 2010 when 11 commercial units were sold. Though average price has been increasing for commercial property since 2010 in St. Lawrence County, Ms. Stevenson said time to close

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NNY Business | September 2013

was a “little sluggish” for the 2011-12 calendar year, averaging 499 days, while the number improved to 364 so far in 2012-13, from 397 in 2010-11.

Lance M. Evans, executive officer of the Jefferson-Lewis and St. Lawrence boards of Realtors, said commercial real estate is just starting to pick back up across the country, with some lenders still reticent, and that some expansions are on hold because of uncertainty over additional costs that may be incurred as a result of the Affordable Care Act. St. Lawrence County, he added, doesn’t typically see the “highs and lows that a lot of other places have,” in commercial as well as in residential sales.

“It’s a gentle wave as opposed to highs and lows,” he said of St. Lawrence County.

He added that Jefferson County saw a lot of commercial development in 2011 and 2012—24 units were sold in 2011

and 25 in 2012 after three straight years of 20 units sold beginning in 2008—and that it may be backing off in 2013.

“Jefferson County is not necessarily doing a lot of commercial,” he said, adding that it is still too early to say definitively as the majority of commercial sales happen in the second half of the year; a “large percentage is still to come.”

Also not captured in data from the board are developers who purchase empty plots of land with the intent to build commercial space, commercial space that is leased and commercial property sold through statewide or national conglomerates. Large-scale commercial properties sales are often conducted privately. The Mercy Hospital property in Watertown, for example, was acquired by Syracuse-area development company COR Development this summer in a transaction that would not be

Please see Commercial, page 40

Real E state

September 2013 | NNY Business

| 39

R E A L E S TAT E COMMERCIAL, from page 38 reflected in the board’s listings or data, Mr. Evans said.

Owner of D Laux Properties, Castorland, Donna M. Loucks said her company has four commercial properties on the market in Lewis County, more than is typically available.

She agreed that sales are lagging somewhat in 2013. Of the four properties, the shortest period one has been on the market is 54 days, while the longest

is 401 days.

“Even though people are saying the economy is improving, I don’t think it really is in this area as far as commercial establishments,” she said.

Amanda Miller, owner of Lake Ontario Realty, Chaumont, said she has noticed properties taking significant time to sell over the past seven to eight years — “pretty hefty time on the market” — something she doesn’t think is improving.

She believes, however, that many

“

It’s not supply and demand.

You may have a lot of people who want to buy.

— Amanda Miller, owner, Lake Ontario Realty, Chaumont.

more people have expressed interest in buying commercial property over the past year, but are being hampered by financing; banks are still lending cautiously, often still requiring 25 to 30 percent down, she said.

“When it gets harder to finance and the more you have to have down, less people are going to be buying so the price comes down,” she said. “It’s not supply and demand, you may have a lot of people who want to buy.”

Lake Ontario Realty currently has 10 to 11 commercial properties for sale in Jefferson County, out of a total of 250 in the north country.

Christopher Clark, a Watertownbased sales agent with commercial real estate firm Pyramid Brokerage Company, which has 10 offices in upstate New York, said he sees the commercial market as “steady and strong” despite “kind of leveling off in the last year or two.” Potential causes for this include the recent announcement of Fort Drum’s 1,500 troop reduction and the unknowns surrounding cuts resulting from the federal sequestration, he said.

Mr. Clark estimates, though, that Jefferson County only has about a 5 percent vacancy in office and retail space.

“You don’t see a tremendous amount of vacancies compared to other municipalities,” he said of the Watertown area.

He also said that with the supply and demand in the housing market approaching a more even keel as a result of the recent completion of several housing projects, landlords are more willing to negotiate deals than they were when demand exceeded supply.

“The housing market drives the economy,” Mr. Clark said, in turn spurring the commercial market. n LEAH BULETTI is a staff writer for NNY magazines. Contact her at lbuletti@wdt.net or 661-2381.

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R E A L E S TAT E / T O P T R A N S A C T I O N S On the Web

Top 10 property sales by sales price recorded in the Jefferson County clerk’s office in July 2013:

Conn., sold to Massena RA Associates LLC, Westlake Village, Calif.

$1,000,000: July 3, Town of Alexandria: 54.5 acres, Route 12, DEC Properties Inc., Syracuse, sold to Robert J. Reddick, Gouverneur. $735,000: July 16, Village of Clayton: 0.492 acre, 316 Rivershore Road, Rivershore Drive LLC, Gunnison, Colo., sold to Dolores M. Blasco, Irvine, Calif. $550,000: July 1, Town of LeRay: 103.7 acres, U.S. Route 11, NBT Bank N.A., successor by merger to Alliance Bank, Norwich, sold to LeRay Route 11 LLC, Pittsford. $520,000: July 5, Town of Alexandria: 0.10 acre, Point Vivian, William McDougal and Joanne McDougal, Manlius, sold to John E. Hooning and Fayanne M. Hooning, Chadds Ford, Pa. $475,000: July 16, Town of Henderson: 0.328 acre, Whites Bay Road, Frederick A. Wratten and Donna J. Wratten, Henderson, sold to William G. McKinney and Michele M. McKinney, Watertown. $435,000: July 3, Town of Alexandria: Eight parcels, 0.30, acre, 0.3 acre, 0.1 acre, no acreage given for the rest, all on Wellesley Island, Vincent J. Chiaramonte and Joan C. Chiaramonte, Sanibel, Fla., sold to Eric R.L. Davies and Anita J. Davies, Kingston, Ont. $425,000: July 2, Village of Clayton: 0.4 acre, Washington Island, Edward E. Brown, Watertown; Helen R. Brown Duffy, Clayton; Kurt F. Brown, Mohawk; and Jay M. Brown, Clayton, sold to Edwin N. Urf Jr. and Laticia M. Urf, Watertown. $415,000: July 12, Town of Clayton: 0.50 acre, Kehoe Tract Road, Harry C. Penoyer and Marilyn J. Penoyer, Central Square, sold to Timothy LaLonde and Mary J. LaLonde, Manlius. $340,000: July 15, Town of Lyme: 1.114 acres, shoreline of Lake Ontario, David E. George and Orieta Taylor-George, Chaumont, sold to Thomas W. Ravelle and Jennifer S. Wardell, Chaumont.

$1,946,307: July 5, City of Ogdensburg: Unknown acres, in Lot 5, bounded by Chimney Point Road, Ansen Corporation, Ogdensburg, sold to MBPJ Acquisition Corporation, Pittsburgh, Pa.

n Visit us at WWW.NNYBIZMAG.COM for current real estate sales from Jefferson, Lewis and St. Lawrence counties, updated weekly.

Click on ‘Data Center’ to access transactions.

$1,200,000: July 1, Village of Potsdam: 3.44 acres more or less, bounded by Market Street and Route 56, James and Michele A. Sheehan, Potsdam, sold to Potsdam Hotel Association LLC, Corning.

$287,000: July 1, Town of Croghan: 11168 Branagan Road, Carolyn M. Haglund sold to AOB New York LLC.

$385,000: July 16, Town of Pierrepont: Unknown acres, in Lot 17, Michael G. Brassard, Hannawa Falls, sold to Xiaosong Song and Phuc Nguyen, Potsdam. $287,000: Town of Louisville: 3.502 acres more or less, bounded by Green Drive, Vance Callendar, Massena, sold to National Residential Nominee Service Inc., Eden Prairie, Minn. $287,000: Town of Louisville: 3.502 acres more or less, bounded by Green Drive, National Residential Nominee Service Inc., Eden Prairie, Minn., sold to Andrew S. and Karen M. Gayeskie, Massena. $272,000: July 9, Town of Parishville: 1.316 acres more or less, in Lot 35 and Lot 42, bounded by Rosenbarker Drive, Timothy P. Liscum, Scottsdale, Ariz., sold to Richard E. Beebe Jr. and Joann H. Beebe, Potsdam. $260,000: July 2, Village of Canton: 0.343 of an acre more or less, in Mile Square 4 of Range 5, Joseph C. Pierson and Elizabeth Kingsley Pierson, Canton, sold to Justin D. and Amy J. Sipher, Canton.

$324,000: July 1, Village of Dexter, 1.54 acres, Grant Street, Converse Construction Don Inc., Watertown, sold to Jerry C. Heath and Nicole M. Modinger, both of Dexter.

$225,000: July 18, Town of Colton: 5 acres more or less, in Lot C of Section 13, Kevin D. and Sheryl L. Chapman, Colton, sold to Byron D. and Leigh K. Erath, Potsdam. $200,000: July 16, Town of Hammond: Parcel 1) 1 acres more or less, Parcel 2) Unknown acres, Parcel 3) 1 acres more or less, all parcels bounded by Riverledge Road, Stephen White, Hammond, sold to James McGarry and Lyn C. Pohl, Feeville.

Top 10 property sales by sales price recorded in the St. Lawrence County clerk’s office in July 2013:

Top 10 property sales by sales price recorded by Lewis County Real Property Tax Service in July 2013:

$2,375,000: July 15, Village of Massena: 0.935 of an acre more or less, bounded by East Orvis Street and Main Street, MRAD LLC, Avon,

$358,000: July 1, Town of Greig: 5730 Shore Road, Timothy J. Martens sold to Charles B. Friden.

$249,000: July 22, Town of Watson: 6420 Taylor Road, Taylor Family Irrevocable Trust sold to Barry F. Baldigo. $220,000: July 1, Town of Croghan: 5358 Texas Road, William H. Cole sold to Lemey, LLC. $179,900: July 2, Village of Copenhagen: 3029 Mechanic St., Wendy D. Leitz sold to William R. Fojas. $165,000: July 11, Town of Lewis: 1335 state Route 26, Amy Mackenzie sold to Michael Thomas Renwick. $143,000: July 16, Town of Croghan: 10463 Third Road, Karen K. LaChausse sold to Scott A. Rupert. $125,000: July 1, Village of Lyons Falls: 3847 Franklin St., Justin Schweinsberg sold to Gary Moscicki. $119,450: July 9, Village of Lowville: 5532 Trinity Ave., Jacquenetta D. Wright sold to Michael J. Nichols. $98,500: July 5, Village of Lowville: 5350 Clinton St., Laurie B. Pendergraft sold to Bruce W. Gayne.

September 2013 | NNY Business

| 41

20 QUESTIONS

NORM JOHNSTON | NNY BUSINESS

IMPORTING SUCCESS

K

en Carmon is always smiling these days, and for good reasons. After more than 42 years in the customs brokerage business he still gets excited when he comes to work each day, even more so since his son, Adam, joined him at Bay Brokerage, the firm he co-founded in 2004 on Wellesley Island. Nearly a decade later, Bay moved into a new $1.5 million corporate headquarters just off Interstate 81 at Collins Landing.

Even bigger plans are afoot­—within five years, the firm hopes to expand to the Southern border.

1

NNYB: How did you become interested in the customs brokerage business?

CARMON: International trade has always fascinated me. Here I am in my 42nd year and I’m excited every day when I go to work. How many people can say that after 42 years? I can’t envision retiring from a job like this. The people you meet, the various countries throughout the world that we deal with, the challenges involved in our clients, their obligations to meet federal requirements, bringing goods into the country—it’s all exciting.

I’m deeply rooted in Northern New York. My family moved into the area in 1950 and was involved in the glass business and distribution. Another part of our family was involved in the export of cheese products from Jefferson County and had rail-side distribution back in the late 1800s, early 1900s. I heard stories over the years from my grandparents and my parents so I was always interested in traffic, freight moving, railway, import, export. I guess you might say it’s in my blood.

2

NNYB: What led you to start Bay Brokerage 10 years ago on Wellesley Island?

CARMON: Back in the 1980s, I worked with a

42 |

NNY Business | September 2013

n Nearly a decade since founding, Bay Brokerage positioned to grow group of very smart people with F.W. Meyers and we were offering a cutting edge technology for importers and exporters throughout the world. I always had a fond interest in the technology side of the company, transmitting data to U.S. customs and the other governmental agencies. I was involved in the first Electronic Data Interchange filing with U.S. customs back in the 1980s for filing data paperless. My team pioneered that, we worked together at the Meyers company. In 2004, we saw the benefits of improving technology and felt the current products that the brokers were offering weren’t as efficient as they could be. When we started our company, our main focus at the time was to develop cutting edge tech to comply with the Trade Act of 2002, which required advanced processing of trade data before the conveyances would arrive—truck, rail, aircraft, vessel and so on—so our timing was perfect. We hit the market and our company started growing rapidly because of the need for that level of technology. That evolved into logistics—we started running a trucking service in 2005 across the border, which grew quickly.

We are four companies: Customs brokerage is our core business, then we do logistics, software development and consulting services.

3

NNYB: Who is your typical client?

CARMON: Most of our logistics as a broker come into the U.S. We do export shipping through our logistics group, however we’re a U.S. Customs broker so we work with importations. A company would

have to have a surety bond on file with U.S. Customs—as a broker we hold their power of attorney to represent them at the border. When their goods are ready to be shipped, we have to have the data in place at least one hour prior to the goods arriving at the border, customs has to certify the file, then we transmit the data that relates to the goods—the shipper, the commodity description, the value, the currency, terms of sale and the U.S. buyer.

4

NNYB: You started Bay Brokerage in 2004, 10 years after former President Bill Clinton signed the North American Free Trade Act into law. Did NAFTA open the door for a lot of what you do today and would you say it’s been successful?

CARMON: NAFTA was huge for us. It expanded our markets and it made our job as a broker more valuable to shippers and importers. To qualify goods for duty-free treatment, there’s a level of proof that has to be provided and documented to customs otherwise the goods will be un-dutyable so it became more involved for the brokers and simultaneously we were handling less money payable. My take on NAFTA is that it’s been a good thing for the US, and a good thing for Mexico and Canada too. It made us more visible on the global market scene. Initially Ross Perot said during one of the primaries that he thought NAFTA was going to really deplete our labor force and it has but not to the degree he predicted—it increased markets with trading

20 QUESTIONS partners and, more importantly, it’s made us more competitive on the global scene. We’ve become more efficient with our labor costs, purchasing and pricing, and that’s increased our trade with Canada. Mexico and Canada are still our two largest export markets, the third being China.

5 6

NNYB: What’s the range of goods you handle?

CARMON: We handle everything and anything from motor vehicles, parts, raw materials, wearing apparel and consumer goods such as toys and office supplies.

NNYB: How did you son Adam come into the business and what’s the dynamic of working with your family like?

CARMON: During our growth in 2008 we were seeking a financial controller. Coincidentally he had just graduated from Clarkson University with a business degree and it was a nice fit. He came into the company and has done a tremendous job. It’s nice to have your children live in the area, but to be working with one of your children—it’s difficult to explain, it’s a great feeling.

7

NNYB: You opened in March at this new headquarters. What was behind such a significant investment?

CARMON: We’ve had considerable interest in our various services—consulting, software development, brokerage and logistics. We could see the growth continuing in the distant future, so it was time to open a new facility. This is where our trucking was based, my two partners are located in this area and it’s home for me. For me it’s been a great place to operate as a broker because I’m halfway between three large markets—Montreal, Toronto and New York City. Over the last 42 years I’ve made many trips to those three places. Montreal or Toronto is easily half a day’s drive—you can conduct business and be right back the same day.

We were on Wellesley Island about 8 ½ years. It was a tough decision—there were many advantages to being there. Under the current requirements with customs you no longer have to be at the port as we did 20 to 30 years ago. Being on the mainland was more favorable—couriers and LTL companies all favored not having to go across the bridge. Many may have been en route to Ogdensburg or Massena, and it was out of the way to go to Wellesley Island. The toll was also one of the reasons—deliveries may not have been as timely.

They may have been waiting for more freight to get on the truck, so some Canadian customers may have had to wait for a shipment for us to deliver.

Now we get it on time, so the toll was a big factor.

It’s great to be near the bridge. Many of our carriers come in from Canada, so we’re easy to find.

8

NNYB: What parts of your operation are in other locations?

CARMON: In Champlain we have a U.S. Customs brokerage facility, in Buffalo we have a warehouse and a brokerage facility, and we have the same in Port Huron, Mich.

9 10

NNYB: How many employees do you have?

CARMON: We have approximately 32 total at all locations.

NNYB: Can you talk a little bit about the parcel service of your business?

CARMON: Our parcel pick-up room is offered to Canadian residents that purchase goods from

NORM JOHNSTON | NNY BUSINESS

Bay Brokerage president Kenneth M. Carmon in the conference room of his firm’s new headquarters near Alexandra Bay. Mr. Carmon supports Jefferson County’s plan to develop an industrial park at the airport. the US. There’s usually favorable pricing on goods such as tires and electronic equipment, and secondly is the timeliness of getting packages. Instead of waiting for a package to be delivered from a hub in Toronto or Montreal, it’s delivered directly to our facility. The Canadian customers come down from Belleville, Ontario, Kingston and Ottawa and receive their packages the same day. Most of the major e-commerce providers would prefer to ship to U.S. addresses so they provide a U.S. address care of their name and get it shipped here.

11

NNYB: Why do suppliers prefer US addresses?

CARMON: It may get tied up with a commercial entry or it could be detained at a customs station on the Canadian side. Customers may not be happy with their delivery service. If it can be shipped to a US address, it’s domestic shipment and it’s much quicker and more convenient for the customer.

12

NNYB: Having been in the industry since 1972, how much of a game changer was 9/11?

CARMON: It was a very large change for the industry, not only with the advanced manifesting of goods, which went into effect in accordance with the Trade Act of 2002, but the Bioterrorism Act was also launched within years after 9/11 and requires very specific handling of products that are ingestible by humans and pets. The FDA increased staffing at border points—they require special information well in advance even prior to customs so they can either approve the release of goods or detain the goods for further inspection. At two different levels we belong to the Customs Trade Partnership Against Terrorism, CTPAT, as a U.S. Customs broker and also as a highway carrier, which was a result of 9/11.

13

NNYB: Did the emergence of the Internet lead to new and innovative things for you?

CARMON: We offer Internet-based programs now. Customers can log into our portal to conduct business. When we first became automated when we operated in the 1970s, we had to pay for valued added networks and it was very expensive to operate. It was very difficult for a small company to start when you’re dealing with that type of equipment so the Internet has enhanced our ability to communicate with our clients. It’s given us the abil-

The Kenneth M. Carmon file AGE: 60 JOB: President, Bay Brokerage, Alex Bay FAMILY: Single; children: Kendra, 33, a

biologist in Houston, Texas; Adam, 29, financial controller for Bay Brokerage and Lance, 25, manager at Best Buy in Watertown

HOMETOWN: Clayton EDUCATION: JCC and SUNY Oswego, Associate’s degree in business

EXPERIENCE: Entered brokerage business

in 1972. In 1978 became a licensed broker, worked for FW Meyers, large national brokerage company, for 22 years. Got into trade consulting in early 1990s, developed business model with a plan to open brokerage company in 1994, recruited by another national company to work with them and did for 10 years. Opened Bay Brokerage in 2004.

LAST BOOK READ: “Iacocca: An Autobiography” by Lee Iacocca

ity to do more electronic business and, of course, with the new security guidelines, it would be almost impossible to operate without the Internet.

14

NNYB: Is moving goods across the border expensive and what’s business like on the other side of the border?

CARMON: It’s a small part of the value and it depends on the complexity of the entry. We have some clients that may bring in 2,000 different articles on one truck. We have some clients that may have 5,000 different ship-to points. That data has to be provided to customs in advance electronically and that would be a more complex entry than on a daily basis. You might be shipping widgets through the border, which are just one product description, one buyer—that would be a less complicated entry. We obviously have more imports than exports but our exports into Canada are growing continuously. Our trucks come back loaded every day and we’re very happy with the amount

September 2013 | NNY Business

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20 QUESTIONS of success we’ve had in the Kingston, Brockville and Ottawa markets. We also offer service in Quebec in the Hall and Gwantwa areas.

15

NNYB: What has driven the kind of growth you’ve seen in recent years?

CARMON: With us it’s kind of a unique situation.

The economy could be in much better shape—the imports from Canada actually declined from 2011 to 2012, but we’re still a fairly new company offering our level of services, thus resulting in growth for imports from Canada and Asia, and also Europe, but Asia especially has grown a lot over the last two years. We bring many containers into Western ports. We do brokerage in over 25 ports of entry a day. We’re very busy in our two Western ports —

Los Angeles and Seattle. We also work with e-commerce companies out of Asia that ship into various airports. We’ve developed special programming for them which is providing substantial growth for us.

We’ve had numerous clients come on board over the last two months and we forecast that that’s going to be a big part of our business growth over the next five years.

16

NNYB: Would you say that you’re in somewhat of a recession-proof industry?

CARMON: With international trade it almost seems that way because if there’s an unfavorable currency in one country, there’s always a favorable currency in another, so in my 42 years every time you lose one you gain two. It’s been very interesting how the

international currencies work versus the commerce within a domestic market. During earlier recessions, the numbers were reduced with imports. In those days we got involved with the oil industry with petroleum exports, and that more than offset our losses so we actually had record years during the recession.

There’s always been a market we could tap into.

17

NNYB: Do you feel that the seeds of economic recovery are growing now and how far out do you think we are?

CARMON: I feel they are, not as quickly as we would all like, but I feel we are headed toward a recovery. I think it’s going to take longer than most people think. I try to be optimistic, but this is slow.

18

NNYB: In November, the U.S. Commerce Department approved Bay Brokerage to operate a foreign trade zone here. What does that allow you to do?

CARMON: A foreign trade zone allows importers to bring goods into the U.S. without the payment of duty or taxes until the goods are utilized. Our zone is a usage driven zone. Unlike a manufacturing zone, we can bring goods into the zone, store the goods for future use and manufacturing, or for future distribution into another country, so if goods are imported into the zone and the sales occur in a foreign country, duties are never paid, they’re shipped from the zone to the foreign country. If the goods are consumed in the U.S., they pay duty at the time of consumption, so it enhances the cash flow of an importer that may otherwise be paying high duty rates. In the case of a manufacturing zone, there are several possibilities. When the goods are manufactured they can take the duty rate of the finished product or, depending on the feasibility, it may be more attractive to maintain the current duty rate and then pay it when the goods are exported.

19

NNYB: In 2011 you expanded your trucking authority into Quebec. What’s next? Are there other emerging markets you plan to tap into?

CARMON: Business with Asia will probably be one of our biggest emerging markets. Secondly the Buffalo area—probably within two years we’ll put trucks on the road in the Toronto area, port of entry Buffalo.

Currently we’re dealing with manufactured goods going to North America for distribution. We’re also dealing with e-commerce companies that ship low-value products, similar to e-Bay and Amazon.

They come to us for the technology we offer—the management of their data, the reporting to U.S. Customs, the timely reporting, the coordination for the e-commerce goods with the airlines. We’re also an automated manifest system filer with U.S. Customs for air shipments. We actually manage the data for some of the airlines. We transmit the data on behalf of the airlines to U.S. Customs and avoid delays at the airports for improper data or lacking data.

20

NNYB: Where do you hope to be in five years and what are your thoughts on the potential for a business park at the Jefferson County airport?

CARMON: We probably would be open in two or three more locations—the southern border, the Lorado area in West Virginia, another port in the West, most likely a major airport or seaport. We’ve talked about opening at the LAX airport, as we have a lot of business out there. We’ve worked remotely down in Lorado for years so we know the area very well.

It’s a big port with a lot of opportunity. We definitely would be interested in having a release facility at the airport when the opportunity arises.

— Interview by Ken Eysaman.

Edited for length and clarity.

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NNY Business | September 2013

G U E S T E S S AY

Region’s needs have grown larger

N

ancy Reagan, John Glenn and Lloyd Bentsen were all born in 1921. And so, too, was the Watertown Community Chest.

The names of those who signed the “Articles of Incorporation” on Sept., 26, 1921, are forever linked to the region’s industrial and banking history: Frank Rhines, George Stebbins and William Pruyn.

And 10 of the 15 people who signed that document were women whose names were synonymous with the leadership of Watertown, including Nellie Willmott, Maud Reed, Mary Goodale and Alice Sherman.

Their mission was clearly stated: to raise and disburse money for “charitable, philanthropic, eleemosynary and benevolent purposes.” And their ability to develop a sustainable organization is apparent 92 years later. Eventually merging with united appeal agencies formed by leaders in St. Lawrence and Lewis counties, the Watertown Community Chest has grown to become the United Way of Northern New York.

The impact of the United Way can be seen everywhere. It was united appeal support that led to the opening of the Boys & Girls Club in Ogdensburg 49 years ago. It has allowed for the continued operation of the SoZo Teen Center, which is now run by the Children’s Home of Jefferson County. And it is the reason that young families in Lewis County who have suffered job losses can get the financial assistance they need to keep their kids in daycare at Hand In Hand Early Childhood Center in Lowville.

And the need for the United Way has never been greater. As governments have cut back on grants since the recession began in 2008, nonprofits are increasingly turning to the United Way for help. Just this year, our 40 partners asked us to raise a combined

$750,000 to help them meet their service goals for 2014.

And more nonprofits are knocking on our doors.

Not all of our nonprofits are very public about what they do.

Bob Gorman Some serve battered women, for instance, and so they are not going to send out a lot of glossy photos of satisfied customers. And the nonprofits that are indeed well-known will tell you the same story: they need other financially stable nonprofits to ensure their own success.

It’s easy to understand. The person who goes to Credo for substance abuse has likely lost his job, his income and his car. He needs the volunteer transportation to keep his appointments. His wife needs the Victim’s Assistance Center to recover from the hell he put her through. Their second-grader has outgrown his clothes and needs to go to the Impossible Dream Thrift store at the Urban Mission before schools starts.

And so to make one person whole, we need a cadre of nonprofits to ensure the entire family is made whole as well.

This year we will be looking to increase our ability to help our nonprofit partners by asking more north country citizens and businesses to join the United Way. If you are not a supporter of the United Way, please consider joining our “52 For U” campaign by pledging one dollar a week for the coming year. Businesses can deduct the dollar a week, making this a simple, painless way

to join your neighbors in helping those who need the most help in Northern New York.

We intrinsically know that we all live better when we all give together. Thank you for helping the United Way improve the lives of north country residents.

UNITED WAY OF NNY

From left, Siraj Sindhu, valedictorian; Nemesis Ruiz, Class of 2013 president, and Meghan L’Huillier, Class of 2013 treasurer.

CONGRATS TO THE WHS CLASS OF ’13

The Class of 2013 raised more money than was needed for this year’s prom and so they gave the remaining money to various organizations and causes.

The United Way of Northern New York was happy to receive a check for $800 in July. And it was a pleasure to speak to some of Watertown’s best and brightest: Valedictorian Siraj Sindhu, Class President Nemesis Ruiz and Class Treasurer Meghan L’Huillier.

HAVE SPEECH, WILL TRAVEL

If your club or organization would like more details on the United Way and its impact on Northern New York, call me at 788-5631. n ROBERT D. GORMAN is former managing editor of the Watertown Daily Times and president and CEO of the United Way of Northern New York. Contact him at bgorman@nnyonline. net or 788-5631.

September 2013 | NNY Business

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E C O N O M I C A L LY S P E A K I N G

Financial statements tell a story

E

ven after working with businesses for 15 years, I still find it very interesting when I have the opportunity to review financial statements. A business’s financial statements tell a business’s story without ever speaking with the owner. That is why it is crucial for a business owner to take time preparing and learning how to read financial statements.

There are typically three types of financial statements that a business owner should be familiar with and regularly monitor: the income statement, the balance sheet and the cash flow statement. A business owner should also monitor the aging of accounts payable and accounts receivable at the same time they review their statements.

The income statement, in short, tells the story of whether a business is making or losing money. If revenues are more than expenses, there is an operating profit; if revenues are less than expenses, there is an operating loss.

It sounds simple, but there is a story in both of those scenarios.

Why are revenues less than operating expenses? What direct costs are associated with revenues and are product margins high enough to cover direct expenses? For example, if you sell a pizza for $10 but supplies to make it are $4 and operating expenses, such as utilities, labor and marketing, are $7, you are losing $1 per pizza.

Based on this scenario, the business owner needs to decide whether to raise the retail price, or review product costs and operating expenses to see if it’s possible to save some money. The caution here is to ensure that the customer can

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NNY Business | September 2013

afford to pay an adjusted retail price. In a market where everyone else is selling similar pizzas at $15, can you afford to raise your retail price to $20?

While the income statement Michelle Capone compiles information over time, the balance sheet provides information on assets, liabilities and equity on a given date. The income statement might tell you if you are making or losing money on operations, but the balance sheet is really the pulse of the business.

At any given moment, the balance sheet shows current assets in cash, inventory and accounts receivable. These are considered current assets because they can be readily liquidated for cash to inject into the business.

It is always wise to review how long you have been holding your inventory or how long it is taking to collect accounts receivable. If you have inventory that you cannot sell or accounts receivable that you cannot collect, you do not have cash coming into the business and may experience cash flow issues. Balance sheets also reflect long-term capital assets like buildings, machinery and equipment.

Opposite the current assets are the current liabilities, which are typically payables like general accounts, sales tax and unemployment insurance. These are the business’s bills. Review the aging of

accounts payable when you review your balance sheet. Taking longer to pay bills could have an adverse impact on your credit. Even though it means you have more cash for operations since you are not paying bills, it also means there are issues with cash. Again, there is a story here about whether revenues are sufficient to cover expenses or whether it is taking longer to collect accounts receivable and turn inventory. The answer is typically a combination of the above.

Finally, there is the cash flow statement, which shows how much cash is available to operate your business. If you have receivables, then you know that you may not receive the cash in the same month you complete the work. This means that you have to budget your cash flow in order to pay your bills. A business will often use a line of credit to cover receivables until they are paid. Also remember that the income statement does not reflect any principal payments on debt, only the interest. The cash flow statement allows you to budget for items like principal payments to make sure there is enough cash to pay these expenses.

The information in these statements is only as good as what is put in them. As a business owner, it is very important to take the time to prepare and review financial statements because they do tell quite a story. For technical assistance, contact your Small Business Development Center or an accountant or CPA, or use software like Quickbooks or Peachtree.

n MICHELLE L. CAPONE is regional development director for the Development Authority of the North Country. Contact her at mcapone@ danc.org. She is a member of the Greater Watertown Jaycees and Sunrise Rotary.

N O N P R O F I T S T O D AY

Developing a ‘social conscience’

I

recently had the joy of participating in interviews of more than 20 candidates for the Community Foundation’s next class of Youth Philanthropy Council members.

One of the questions asked of these high school students was, “what is your definition of quality of life?” Nearly all of the responses included the word “happiness” and referenced how a community “feels.”

While it seems simple, a community’s happiness is affected by a variety of factors, including many that are made possible through the structure of a nonprofit organization. These young leaders have a sense for what defines quality of life, and will soon find out that preserving it often requires more than simply a desire to do so.

The majority of residents recognize the value in the ways the nonprofit sector impacts individual and community quality of life across a broad spectrum of needs and interests that go beyond pure existence. While basic human services remain the core work of nonprofits, we cannot forget the libraries, museums and educational, artsistic, cultural, environmental and health and wellness organizations that make the places we spend our lives much more than mediocre. Those same citizens continue to sense that something will have to give to simply maintain the types of community enhancements we have come to enjoy.

Recently, New York became one of 19 states passing legislation that allows benefit corporations.

In the simplest of terms, a benefit

corporation is a for-profit entity that is required to make decisions based on the business’s impact on the community, its employees and the environment.

Rande Richardson Businesses with a social conscience are considered part of the emerging “forth sector,” falling somewhere between a traditional company and a nonprofit. Approximately 300 have been formed in the last three years. The primary characteristics of a benefit corporation are: n A requirement that a benefit corporation have a corporate purpose to create a material, positive impact on society and the environment. n An expansion of the duties of directors to require consideration of non-financial stakeholders as well as the financial interests of shareholders. n An obligation to report on its overall social and environmental performance using a comprehensive, credible, independent and transparent third-party standard.

The north country is very fortunate. We have many businesses that actively practice social responsibility and regularly reinvest in the communities that support them.

Many of our most beloved companies are family owned and operated and have

the flexibility to embrace goals that aren’t always exclusively about the bottom line.

Keep in mind that benefit corporations seek to make profits and expect return on investment. Often referred to as “social entrepreneurs,” owners of these entities often see themselves as broadening the role of business in society. Benefit corporations give investors a way to make money and improve their communities at the same time. They also create marketing opportunities to differentiate the business as a new class of corporation required by law to benefit society as well as shareholders.

As the nonprofit sector strives to do what it always has with fewer resources overall, benefit corporations may become yet another piece of an overall movement to sustain the work that each one of us has benefited from at one time or another. It is this type of unconventional thinking that may better round out the partnership between government, philanthropy and business.

As with all things worth doing, it will require hard work, vision, perseverance, creativity and a willingness to be open to unconventional solutions. We live in a world of “adapt, change or die.” Just ask those new members of the Youth Philanthropy Council who will inherit our community. They’ll tell you. 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.

September 2013 | NNY Business

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COMMERCE CORNER

To rebrand or not: The big question

A

s the economic world is changing, many businesses are finding it necessary to change to meet the demands of this shift in the way business is done. Change is inevitable and is part of what makes businesses successful or unsuccessful. But is rebranding a possible answer and, if so, how can it help a business?

Many businesses both large and small are rebranding to promote a new line of business, to attract a new audience or to convey a sense of relevance. The most important component of rebranding is to ensure that it is the magnet that draws people to your product. The brand of a product is the most important thing behind the product itself.

WHERE SHOULD A BUSINESS START?

mercials, social strategies and any other marketing collateral. Rebranding touches all components of a business and should therefore be a strategic planning process.

As the business begins the brainstorm planning phase, there are three important questions to keep in mind: Who are we?

Who are our customers or who do we want them to be?

Where is our company going in the future?

Rebranding can be a daunting task and many businesses enlist the assistance of a marketing or public relations firm to ensure the investment is completed seamlessly. Rebranding requires research to ensure that the business is aware of its competition, while remaining loyal to its mission or core values. If a business lacks a marketing department, this may be a necessary step.

Due to the magnitude of work that goes into rebranding, one of the most important components of a successful rebranding campaign is to recruit the right people so the project is completed thoroughly. Almost all rebranding situations are team efforts that focus on enhancing the creativity of the others, and require both optimism and energy.

One of the most important components of a successful rebranding campaign is to recruit the right people so the project is completed thoroughly. Almost all rebrandings are team efforts.

Businesses or business owners may come to the realization that it may be necessary to rebrand to change with the market or if the business has outgrown its current brand.

Businesses large or small can seize the opportunity to give a company a fresh, new look, by identifying any new products or major changes that may be taking place within the company. Rebranding can also be used as a means to target a different audience.

When rebranding, your customers should not feel the change—they should

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feel part of the excitement.

Always ensure you put yourself in your customers’ shoes when considering rebranding. It is extremely important to have the customers Lynn Pietroski and/or potential client still feel there is value to your product; their input matters.

Rebranding takes time and can cause angst for those who have been associated

NNY Business | September 2013

with an organization or investors in the business. It is important to ensure that all investors, regardless of size, are aware of the stages of the rebranding process.

It is never a good idea to do a partial branding and release only portions of products with the new brand with the old brand. Many businesses market the launch of their rebranding as a tool for the exposure, which includes everything from a website redesign, print materials, com-

n LYNN PIETROSKI is president and CEO of the Greater Watertown-North Country Chamber of Commerce. Contact her at ceo@watertownny. com. Her column appears monthly.

AGRI-BUSINESS

Promoting ag over the airwaves

M

any people are two to three generations removed from agriculture. As I attend various meetings, people try to connect back to agriculture, saying, “I come from a farming background, I used to go to my grandparents farm on the weekends.”

People’s interest in relating to farming is appreciated, and helpful. At the same time, it becomes a barrier to understanding a rapidly changing industry. The old red barn is cemented in our sentimental values and Holsteins wandering the pasture on a sunny day is a Rockwellian image.

Agriculture is a rapidly changing industry full of highly technical equipment and new vast metal structures that dot our rural countryside, and fewer people directly growing food and fiber comprehend the changes happening and what they mean to the industry. Yes, you will still see red wooden hipped roof structures and pastoral scenes of Holsteins grazing green pastures lightly dampened by morning dew. But these images are fewer.

Changes in agriculture, which mean fewer people involved result in huge metal barns replacing small structures, and fewer cows grazing in pastures and lead people to believe that agriculture is changing for the worse. It is not. The industry is just changing and adapting to a new world with different needs and advanced technologies.

Part of our mission for the Jefferson County Agricultural Development Council of JCIDA is to promote agriculture. Promoting the fantastic agricultural products that come from the industry has become more integral to our role than we

expected as we developed our mission in 2001.

Some of the tools with which we accomplish this mission were also unexpected.

In the summer of 2002, I was invited by Dave Jay Matteson Mance, then owner of radio station AM 1240 WATN, to participate in a meet and greet with a nationally syndicated conservative radio talk show host Mike Gallagher, onboard Uncle Sam Boat Tours on the St. Lawrence River. I had previously done quite a few two-minute shows that 1240 morning personality Mike White had produced about agriculture.

Aboard the boat, Mike and I sat and talked about farming. Mike invited me to come on the air regularly to talk about farming. The next week, The Home Grown Show aired for the first time. We decided to make it a weekly feature on Friday mornings. We used an entire hour and began inviting many guests to come into the studio or call in and share their agricultural stories or products.

Mike and I did the show together. I provided in-depth interviews and Mike added color commentary. Our success lasted for several years as we interviewed everyone from farmers to agricultural commissioners to federal, state and local elected officials. The show on 1240 ended when formatting changes took place.

Former Gov. David A. Patterson even

issued a proclamation celebrating the show’s success and sadly noting its end.

Three weeks after the last show on 1240, 790 WTNY AM contacted me, indicating they might be interested in picking up The Home Grown Show. A month later, the show was back on the air and I was joined by co-host Michael Schenk. Four years later, the Home Grown Show is still on the air. Mr. Schenk has moved on to work for state Sen. Patricia A. Ritchie and 790 morning personality Alan Walts now co-hosts the show.

Every Saturday at 6 a.m., we bring listeners an exciting mixture of food, farming and people involved in agriculture. The hour-long format is lighthearted, fun and informative. We target an audience that is removed from farming by multiple generations while still providing the ag community with useful information. I adamantly tell people, “the show is a show for city folks but we like it when farmers tune in as well.”

Peter Gregg from Atticus Communications, an agricultural marketing and promotion firm, says that we are the only show of its type in New York.

For more than a decade, the JCIDC has used a somewhat unusual tool to bring agriculture, and all the great things it does for our local economy, into the living rooms, kitchens, cars and tractors of Northern New York. The show can be downloaded on demand at www.790wtny.com.

n JAY M. MATTESON is agricultural coordinator for the Jefferson County Industrial Development Agency. He is a lifelong Northern New York resident who lives in Lorraine. Contact him at coordinator@comefarmwithus.com.

His column appears monthly.

September 2013 | NNY Business

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BUSINESS TECH BYTES

Pop your hood for amazing tech

I

t was back in the late 1970s when the National Highway Traffic Safety Administration began to insist that automakers devise ways to monitor the effectiveness of automobile emission control systems. This led to the birth of the first version of the standardized On-Board Diagnostics protocol. Late model cars now have the second generation OBD, known as OBD-II, and require a Controller Area Network to efficiently connect all of a vehicle’s sensors.

Vehicles are increasingly becoming computers with wheels—a system of software protocols and wires connecting a vehicle’s computers and sensors.

Your vehicle’s computer transmits all its sensor and programming information constantly, as many as 2,000 signals at any given time, whether they’re being requested or not. Eric Paton, a technical specialist at Ford, says, “If there’s one thing drivers should know when getting into a car, it’s that everything seems simple, but beneath the covers it’s incredibly complex.

Each electronic control unit or ECU can do several jobs like controlling the engine or transmission, unlocking your doors or rolling up your windows. These same ECUs have sensors and switches wired in to detect variables such as temperature, oil pressure, voltage and acceleration.

When an ECU needs a signal from a sensor connected to an ECU elsewhere in the car, that’s where the CAN comes in.”

The same data port can also be used if a car manufacturer uncovers a computer glitch or wants to modify how an automo-

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NNY Business | September 2013

bile operates.

Now installing an update in a customer’s car is as simple as a dealer’s automotive technician plugging his computer into a car’s data port and uploading Jill Van Hoesen the new software. Before CAN, this would have meant physically replacing an ECU. Like any computer system, cars can be reprogrammed or hacked. Manufacturers frown on the practice; if you are caught, your warranty will be voided. Even though hacking into your car’s system directly is not advisable, there are some aftermarket gadgets and applications that will interact wirelessly with your car’s OBD-II connection and smartphone to give you a complete picture of your car’s efficiency and performance.

The DevToaster Rev OBD-II system displays how efficiently and quickly you are driving and how your car is behaving. Its graphical display will show acceleration and braking forces to lateral acceleration (g-forces). All you need is a wireless ODB-II data transmitter and the Rev application on your iPhone and you will be ready to not only graph your performance, but also monitor wear and tear on your car and even reset that pesky check engine light.

The PLX Kiwi Drive Green and MPG are two other OBD-II devices that can be wirelessly connected to your car’s computer via your iPhone, iPod Touch or Android.

The KIWI system enables you to read engine and vehicle diagnostic codes through a free app and provides a large selection of driver efficiency coaching scenarios while tracking your car’s performance.

The Car MD gadget won’t turn off the check engine light, but it can diagnose which code is popping. It will then take you to a website that will explain the problem and provide an online calculator that will estimate the price of the repair.

Voyager Dash will wirelessly send data to your Android smartphone and display gauges and graphs of your car’s performance.

OBDroid is another fault code reader that will describe what the codes mean.

It also displays vehicle and engine speeds and intake airflow while calculating fuel economy and resetting check engine warning lights.

Torque is an Android app with quite a lot of capability. It is gaining popularity among car enthusiasts who own Android devices because it uses Google Earth real-time car-performance displays and calculated horsepower and torque measurement. Most importantly, it automatically records 0 to 60 mph sprints while retrieving and resetting fault codes. 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.

SMALL BUSINESS SUCCESS

Going green will save your green

W

e had some unusually hot weather this summer, so air conditioners seemed more of a necessity than a luxury for many of us. Normally, our utility bills are highest during the cold weather of winter (and fall, and spring) because of heating. But certain types of small businesses, including convenience stores, restaurants and retail shops, incur significant utility costs year-round because of their heating and cooling systems, lighting and refrigeration units.

For example, Monnat’s Country Store in Croghan was erected in 1922 and has 14foot ceilings and multiple coolers; energy costs were a significant part of operating expenses.

Owner Gerald Schneeberger, who has been operating his business there for 18 years, came to the Small Business Development Center for help with obtaining a New York State Energy Research and Development Authority energy review. This audit is free and available to small businesses with an average monthly energy use of 100 kilowatts or less.

After an on-site visit by an auditor, the businessperson receives a detailed assessment that provides a range of potential improvements with associated costs, payback periods and potential savings. Upon receiving the report, business owners can select what to implement based on their budget. Savings on an utility bill may even offset the costs of the improvements.

Jerry K. Loch, energy educator at Cornell Cooperative Extension of Jefferson County, conducted the audit for Monnat’s Country Store. After reviewing the recommenSarah O’Connell dations, Mr. Schneeberger opted to insulate his basement, fit storm windows for his large front plate-glass windows, replace cellar windows and

rest of the loan at market rate, leading to significant savings.

The other program is called “On Bill Recovery Financing.” It allows the business to use the savings on their monthly bill plus a low interest rate to offset the cost of improvements over time without a significant increase in their utility bill.

This program is also available to small nonprofit businesses. In either case, the applicant does not have to own the building as long as the actual owner agrees to the improvements.

Even if you don’t think this program is necessary for your business, you can still make small changes to reduce energy costs. Switching from incandescent lighting to CFL bulbs is a quick and easy fix. Shutting down computers at night, switching off lights in rooms not in use and using a programmable thermostat are other simple changes that can improve your bottom line.

For assistance with the application process for a NYSERDA energy review, contact the SBDC at its Watertown location at 782-9262 or sbdc@sunyjefferson. edu, or at its Canton location at 386-7312 or sbdc@canton.edu.

Switching from incandescent lighting to CFL bulbs is a quick and easy fix. Shutting down computers at night, switching off lights in rooms not in use and using a programmable thermostat are simple changes that can improve your bottom line. exhaust fans, insulate the pipes and install a natural gas entrance for heat conversion from fuel oil to natural gas.

Mr. Schneeberger is pleased with the results.

“This energy business is all new to me,” he said. “But when you have 14 to 15 compressors at one time, it can make a big difference and can add up.”

NYSERDA offers two financing options for participants in the program. One is called a participation loan: NYSERDA provides 50 percent of a loan, up to $50,000, at 0 percent interest, and a participating lender (e.g. bank) funds the

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 every other month.

September 2013 | NNY Business

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COMMUNITY / BUSINESS CALENDAR

ADAMS CENTER

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SATURDAY, SEPT. 14

n Universal energy applications, 1 to 4 p.m., Kripalu Yoga and Wellness Center, 14029 Route 11. A course on the power of positive thinking.

Tuition: $30. Information, registration: Steve Williams, 583-5500 or www.kripaluyogaandwell nesscenter.org.

ALEXANDRIA BAY TUESDAY, SEPT. 17 & THURSDAY, SEPT. 19

requested by Friday, Sept. 20. More information: Anita Figueras, 379-9192.

CARTHAGE SATURDAY, OCT. 5

n Dueling pianos show to benefit Carthage Area Hospital, 6:30 to 9 p.m., Carthage Elks Lodge, 511 Fulton St. Admission: $30. More information, reservations: 493-0114 or www.carthage hospital.com.

CHAUMONT

n Web design workshop, 7 to 9 p.m., Mascherry Library. Class will use a free web-based template resource to help participants quickly build a website for a business or personal use. Participants should bring content, including photos or logos, in a Microsoft Word document. Workshop is for website beginners. Instructor is Sara Carpenter.

Tuition: $50. To register: Continuing Education Division, 786-2438.

SATURDAY, SEPT. 21

SATURDAY, OCT. 5

LOWVILLE

n Oktoberfest, 11 to 8 p.m., Thousand Islands Winery. Live music including a German Oompah Band, wine and beer, food, hayrides, grape crushing demonstrations, grape stomping competitions, local vendors, wine tastings and winery tours. Admission: $5 at the gate. More information: www. thousandislandswinery.com or 482-9306.

BALDWINSVILLE FRIDAY, SEPT. 20

n National Postal Customer Council Day, 10 a.m., Foxfire Golf Course, 1 Village Blvd. N. Registration beings at 10 a.m., keynote address by Postmaster General followed by networking and lunch. Golf will commence at 2 p.m. Admission: Free, paid members; $10, non-members; golf and alcoholic beverages additional charges.

CANTON WEDNESDAY, SEPT. 25

n Affordable Care Workshop, 7 to 9 p.m., Cornell Cooperative Extension office, 2043B State Highway 68. Workshop open to farmers, small business owners and individuals will address questions on the individual exchange for sole proprietors and individuals and the Small Business Health Options Exchange. One of six workshops offered in the north country sponsored by the Cornell Cooperative Extension Associations of Northern New York. Workshop is free. Pre-registration

NNY Business | September 2013

n Snug Harbor’s first annual golf tournament, 11 a.m., Bay Breeze Golf Links, 11390 Cheever Road. Nine-hole, two-person tournament to benefit American Cancer Society in memory of Kenny Albro. Cost including golf, cart, free drink and food following tournament: $45; team, $90; no golf, $10. Reservations must be made by Saturday, Sept. 14: 654-2139.

WEDNESDAY, SEPT. 11

n National Night Out, 6 to 9 p.m., Lewis County Fairgrounds. An evening of demonstrations by local law enforcement agencies and youth activities for all ages. Sponsored by the National Association of Town Watch and co-sponsored by the Lewis County Sheriff’s Office and the Lewis County Youth Bureau to increase crime and drug prevention awareness and support local anti-crime efforts.

Gift card raffles, door prizes, food. Free admission. More information or those interested in participating: Lewis County Youth Bureau, 376-5411.

TUESDAY, SEPT. 12

n Nurses’ Retreat: Rekindle Your Passion, 8 a.m. to 3 p.m., Tug Hill Vineyards, 4051 Yancey Road.

Day includes motivational speaker, lunch and vendors offering massages, spiritual healing, manicures, facials and yoga. Tuition: Lewis County General Hospital nursing staff, $30; other nursing guests, $50. More information: www.lcgh.net.

SATURDAY, SEPT. 14

n Annual Lewis County food drive, 8 a.m. to 2 p.m., Lewis County Fairgrounds. United Way Community Food Drive. All donations will be distributed to the Lewis County food pantries. There is also a drop box at the Chamber office, which is open 9 a.m. to 4 p.m. Monday through Friday. For a complete list of items that the pantries need, visit www. lowvillefoodpantry.org.

MONDAY, SEPT. 16

n Wine tasting and dessert night, 5 to 7 p.m., Lowville Free Library, 5387 Dayan St. North country bakers will share samples of products as the library celebrates 110 years. Cost: $10. Information: 376-2131.

SATURDAY, SEPT. 28

n Old Growth Hike, 9 a.m. to 12 p.m., Forest Preserve, Osceola. Guided 4-mile, round-trip hike through Tug Hill’s old growth forests. Learn about the area’s flora and fauna, beaver flows and salamanders. Sponsored by Tug Hill Tomorrow Land Trust. More information: www.tughilltomorrow landtrust.org.

SATURDAY, OCT. 5

n Fall into Action Walk/Run, registration 8 a.m., walk/run 9 a.m., Maple Ridge Center, East Road.

Jumpstart your fall fitness. More information: Lewis County Public Health Agency, 376-5453.

PHILADELPHIA SATURDAY, SEPT. 14

n Seventh annual multiple sclerosis fundraiser dinner, 11 a.m. to 4 p.m., Philadelphia American Legion, 58 Main St. Entertainment, raffles, prizes, cash bar. Beef barbecue or meatball subs, $5; hot dogs, $3. Meals include potato salad, macaroni salad, vegetable, dessert and beverage. More information: 642-3334.

MADRID SUNDAY, SEPT. 15

n First Annual Hogs for Humanity Motorcycle Run & Benefit, 10 a.m. to 5 p.m., The Ole Smokehouse. Benefit for the Madrid Food Pantry and local neighborhood centers sponsored by The Ole Smokehouse and Pearson Logging. Registration 10 to 11:30 a.m., kickstands up at noon. T-shirts guaranteed for the first 100 registered riders. Silent and 50/50 raffles and buffet. Cost: $20, riders; passengers, $10. More information: 244-2544.

MASSENA SATURDAY, SEPT. 28

n Wildlife Festival, 10 a.m. to 4 p.m., Frank S. McCullough, Jr. Hawkins Point Visitors Center Boat Launch, 21 Hawkins Point Road. Hosted by New York Power Authority. World of Wildlife and Educational Encounters will bring exotic and endangered animals and put on interactive shows at 11:30 a.m. and 2 p.m. Craft demonstrations, a petting zoo, wagon rides, birds of prey presen-

Opportunity and U.S. Small Business Administration. More information: CenterState CEO, 4701800 or www.centerstateceo.com.

SATURDAY, OCT. 12

n Speed Networking, 8 to 10:30 a.m., CenterState Corporation for Economic Opportunity, 572 S. Salina St. Small group setting for informal networking with other CenterState CEO members.

Participants will also have the opportunity to share their personal short pitch with others. A list of participants will be provided at the door. Registration begins at 7:30 a.m. and refreshments will be provided by JoLiMe Fresh Garden Café. To register: www.centerstateceo.com or 470-1800.

n Alcoa Employee Food Drive 5K Run/Walk, registration and packet pickup 7:30 to 8:30 a.m., race starts at 9 a.m., Robert Moses State Park, start at Barnhart Beach Main Pavilion. Race benefits St. Vincent DePaul, Meals on Wheels, Salvation Army and Massena Neighborhood Center. T-shirts will be given to the first 200 registrants. Pre-registration fee: $15; children 12 and younger, $8. Race day registration fee: $20; children 12 and younger, $10. Send entry form and payment to: Tom Seguin, 20 Urban Drive, Massena. More information: 769-6781 or www. massenachamber.com.

OGDENSBURG SATURDAY, OCT. 5

n Ogtoberfest, all day, Greenbelt Park. Music, authentic German food, fireworks, children’s games and beer garden. More information: 393-3620.

SATURDAY, OCT. 14 n Scavenger Hunt, 1 to 7 p.m., Hosmer’s Marina.

Teams will scavenge the city for five hours to find seven challenging clues and landmarks for the opportunity to win a $200 cash prize. Free refreshments while judges tally scores. Entry fee: $50, four-member team. More information: Sandra Porter, 393-3620.

POTSDAM THURSDAY, SEPT. 19 TO SUNDAY, SEPT. 22

n Sandstone Festival, Potsdam Public Museum, Civic Center, 2 Park St. Walking tours, demonstrations, lectures, hands-on projects, history, quarries, maps and more. More information: www. potsdampublicmuseum.org or 265-6910.

SACKETS HARBOR TUESDAY, SEPT. 19

n Battlefield bird walk, 7:30 to 9 a.m., Sackets Harbor Battlefield State Historic Site. Meet at the Picnic Pavilion near the Battlefield parking lot on Hill Street. No prior experience with birding necessary. More information: Constance Barone, 646-3634.

SANDY CREEK SATURDAY, SEPT. 21 TO SUNDAY, SEPT. 22

n Eighth Annual Crank it Up Antique Tractor and Engine Show, 8 a.m. to 9 p.m. Saturday, 9 a.m. to 4 p.m. Sunday, Oswego County Fairgrounds.

Large display of antique tractors and engines, as well as old farm equipment. Flea market, oldfashioned children’s games, classic cars, chicken BBQ, crafts, square dance, Hawks Air Show, radio-controlled truck pull, corn maze and more.

Parking: $5. More information: www.crankitup-antiquecarshow.com or Doreen Macklen, 387-5365.

SYRACUSE THURSDAY, SEPT. 19

n Health Care Reform 2014 – It’s Here, 8 to 10:30 a.m., Maplewood Inn Suites, 400 7th North St., Liverpool. Health care discussion sponsored by CenterState Corporation for Economic

TUESDAY, SEPT. 24

WATERTOWN FRIDAY, SEPT. 13

n Membership Drive Dinner, 6 to 8:30 p.m., Ballroom, Black River Valley Club, 131 Washington St. Free dinner and presentation for prospective club members. More information: www.brvclub.com.

WEDNESDAY, SEPT. 18

n Sacred Heart Foundation 40th annual benefit dinner, Hilton Garden Inn. Featured speaker will be Father E. Michael Camilli, Missionaries of the Sacred Heart, who will discuss “Renewed Missionary Energy in the Year of Faith.” Proceeds from the dinner will support the foundation’s efforts to fund those studying to be priests and brothers of the Missionaries of the Sacred Heart around the world. Over the past 40 years, the foundation has distributed more than $1 million in funding.

Tickets are $30: 782-3344.

THURSDAY, SEPT. 19

n Greater Watertown-North Country Chamber of Commerce Business After Hours, 5 to 7 p.m., Barrett Paving Materials, 26572 Route 37.

Networking, prizes and food. Register by noon Wednesday, Sept. 18. Admission: Members registered in advance, $8; non-registered members, $10; non-members, $12. To register: www.wa tertownny.com.

FRIDAY, SEPT. 20

n An evening of dance featuring Bharati Jayanthi and Barynya, 7 p.m., Sturtz Theater, Jefferson Community College. Bharati Jayanthi is a Bombay-native who was trained in classical Indian dance from the age of eight. Barynya is a worldrenowned group that will present Russian, Cossack, Ukranian, Jewish and Gypsy Roma traditional dancing, songs and virtuoso performances.

Free admission. Information: 786-2289.

THURSDAY, SEPT. 26

n Affordable Care Workshop, 1 to 3 p.m., Cornell Cooperative Extension office, 203 N. Hamilton St. Workshop open to farmers, small business owners and individuals will discuss the individual exchange for sole proprietors and individuals and the Small Business Health Options Exchange.

One of six workshops offered in the north country sponsored by the Cornell Cooperative Extension Associations of Northern New York. Workshop is free. Pre-registration requested by Friday, Sept.

20. More information: Peggy Murray, 376-9192.

SATURDAY, SEPT. 28

n Liferight silent/live auction and luncheon, viewing 11 a.m., live auction 12 p.m., Italian American Civic Association, 192 Bellew Ave. Items to be auctioned include: quilted items, crafts and paintings by local artists, a night in a local hotel, home furnishings, a security alarm system and

installation, theme baskets and gift certificates.

Lunch will follow the auction; to RSVP mail a check for $10 payable to Liferight to Francine Hanlon, 139 Coleman Ave., Watertown.

TUESDAY, OCT. 1

n Jefferson’s Table—I Love NY, 6 to 7:30 p.m., Walker Instructional Dining Room, Jules Center, Jefferson Community College. JCC culinary arts students will prepare and serve dinner. The menu consists of stuffed mushrooms and winter squash soup; a choice of entrée between Adirondack pork scallops with apples poached in New York state Reisling or poached salmon with white wine, tomato and basil cream sauce and wild rice pilaf; and dessert of carrot cake with New York state maple cream cheese frosting. Dinner: $25/person. Reservations required: Kim Mattraw, 7862495 or kmattraw@sunyjefferson.edu.

SATURDAY, OCT. 5

n Workshop – The Quick Version: Excel Basics, 8 a.m. to 3 p.m., Extended Learning Center, Jefferson Community College. Learn the basics of Excel, including creating worksheets and basic formulas.

Includes one-hour, bring-your-own-lunch. To register: Continuing Education Division, 786-2438.

SATURDAY, OCT. 5

n Watertown March for Babies, 9 a.m. to 12:30 p.m., Thompson Park. Three-mile walk to benefit research and community-based programs to help mothers have healthy, full-term pregnancies and healthy babies. Complimentary refreshments and a Kids Workshop sponsored by Home Depot. Registration 9 a.m., walk at 10 a.m. More information, registration: www.marchforbabies.org.

SATURDAY, OCT. 5

n 5K Walk/Run, 9 a.m., Immaculate Heart Central Junior-Senior High School, 1316 Ives St. Benefits IHC Athletic Booster Club. Registration fee: $25, includes free t-shirt. Online registraion: www.ihcschools.org. More information: Milly Smith, 221-3785 or quickmeduc@yahoo.com.

TUESDAY, OCT. 8

n The Family Medical Leave Act, 8:30 to 10 a.m., Ramada Inn, Arsenal Street. Seminar sponsored by the Greater Watertown-North Country Chamber of Commerce will discuss changes to the Family and Medical Leave Act that expand the legal right to take unpaid leave to care for certain family members who serve in the military and extend leave to care for family members who are veterans. Admission: Registered members, free; non-registered members, $5; non-members, $5. To register: 788-4400 or www.watertownnny.com.

COMMUNITY / BUSINESS CALENDAR

tations, chainsaw carving, entertainment, food vendors and more. Free admission and parking.

Event will be held rain or shine. More information: 764-0226 or www.nypa.gov.

WELLESLEY ISLAND SATURDAY, SEPT. 14

n Free kids fishing classes, 11 a.m. to 13:30 p.m., Minna Anthony Common Nature Center, Wellesley Island. Regular fishing with worms and lures will be taught from 11 a.m. to 1 p.m. and fly fishing will be taught from 1:30 to 3:30 p.m. Students 16 and older must have a valid New York state fishing license. The event will be repeated on Saturday, Oct. 5. More information: 482-2479.  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.nnybizmag.com for events calendar updates.

September 2013 | NNY Business

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BUSINESS SCENE GWNC Chamber Business After Hours at Fairfield Inn & Suites

From left, Jenna Singer and Karen Rose, Clayton Distillery.

KEN EYSAMAN PHOTOS | NNY BUSINESS

From left, Kristin Puccia, Adam Storino, Storino Geomatics, Sue Storino and husband, Tom. Fairfield Inn & Suites hosted the August Greater Watertown-North Country Chamber of Commerce Business After Hours on Aug. 15. The September Business After Hours is from 5 to 7 p.m., Thursday, Sept.

19, at Barrett Paving Materials, 26572 state Route 37, Watertown.

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NNY Business | September 2013

From left, Kimberly McDermott and Maryann Mooney, Regional Medical Management, Watertown.

KEN EYSAMAN PHOTOS | NNY BUSINESS

From left, Marie Whittingslow, Jeannie Nicholas, Nicole Langridge and Kari Bartlett, all of First Niagara bank.

BUSINESS SCENE GWNC Chamber BAH at Fairfield Inn

From left, Stephanie Perry, Rainbow International, and Sybil Jones, Key Bank.

Carthage Area Chamber BAH at IMEC

Tom Ellis, Zapet Vibrations Disc Jockey Service, Carthage, and wife, Penny, Fuller Insurance, Carthage.

KEN EYSAMAN PHOTOS | NNY BUSINESS

KEN EYSAMAN PHOTOS | NNY BUSINESS

From left, Heather Peck, Pearson Education, New Jersey, Barb Peck, and Paul Passino, both of the Children’s Home of Jefferson County.

Lori Borland, executive director, Carthage Area Chamber of Commerce, and Robert Sligar, Carthage Savings & Loan. Independent Medical Evaluation Company, Carthage, hosted the August Carthage Area Chamber of Commerce Business After Hours on Aug. 22.

n LIKE NNY BUSINESS ON FACEBOOK

at www.facebook .com/nny business or scan this QR Code with your smartphone for links to exclusive content, daily updates and sneak peeks of coming issues.

September 2013 | NNY Business

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BUSINESS SCENE Carthage Area Chamber Business After Hours at IMEC

From left, Laura Cook, project manager, Carthage Area Hospital, and Natalie Burnham, executive director, Carthage Area Hospital Foundation.

KEN EYSAMAN PHOTOS | NNY BUSINESS

From left, Patti Monaghan, IMEC, Carthage, Brooke Sholette, Tug Hill Vineyards, Lowville, and Darci Robbins, IMEC, Carthage.

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NNY Business | September 2013

Pat and Les Browning, U.S. Army, retired, West Carthage.

KEN EYSAMAN PHOTOS | NNY BUSINESS

Pete Turner, superintendent, Carthage Central School District, and wife, Jeanette, Sew What! Quilting and Embroidery, Carthage.

BUSINESS SCENE River Hospital Foundation Gala at Boldt Castle

From left, Kimberly Doan, Bremen, Ohio, Tom Wade, Redwood, owner, Bay Drive-In Theatre, Alexandria Bay, and Melinda Barrows, Columbus, Ohio.

From left, Angela Alpaugh, Evans Mills, and Sharon Alpaugh, Chenango Forks.

KEN EYSAMAN PHOTOS | NNY BUSINESS

From left, Nancy, Rachel and Grant Amsterdam, Cherry Island. River Hospital Foundation hosted its annual Gala at Boldt Castle on Heart Island Aug. 24.

Nearly 200 people attended. Event proceeds supported River Hospital’s River Community Wellness Program.

KEN EYSAMAN PHOTOS | NNY BUSINESS

Jim Redmore, chief operating officer, River Hospital, and Rebecca Toomey, Carthage.

September 2013 | NNY Business

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Lunch Menu

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NNY Business | September 2013

APOLLO, from page 36

“One bite, and you’ll know why it’s the national dish of Greece,” she said.

The Apollo also sells numerous bulk items, including stuffed grape leaves, pita bread, tzatziki sauce, Greek salad dressing, hummus, feta cheese, gyro meat, baklava and Greek coffee.

Two of the market’s most popular sellers are homemade tzatziki sauce, a cucumberbased dressing that the restaurant makes “non-stop, sunrise to sunset” to keep up with demand and baklava, a Greek pastry made with walnuts, almonds, honey and cinnamon and wrapped in phyllo dough, Mr. Tinsley said.

Given the restaurant’s location in a strip-mall type plaza and the “now saturated marketplace,” Mr. Tinsley said celebrating 25 years means the Apollo has beaten the odds; independent restaurants in similar locations often last no more than a few short years, he said.

“I think we’ve been able to survive because we continue to do what we’ve been doing from the beginning, and that is providing exceptional products and customer service to a loyal and solid customer base,” he said.

Ms. Hiotis added that the owners are cautious when choosing staff and ensure

The Apollo Restaurant WHERE: 1283 Arsenal St., Price Chopper Plaza, Watertown HOURS: 11 a.m. to 9 p.m. Monday to Friday; 8 a.m. to 9 p.m. Saturday and Sunday PHONE: (315) 788-3569 ONLINE: www.apollomenu.com

that all employees are friendly, genuine and caring.

“Everyone from the wait staff to the dishwasher cares about the restaurant, and it shows,” she said. “Everything combined creates a homey atmosphere, and it makes it a comfortable place to enjoy a meal and to work. I believe this is why we have so many regular customers.”

It seems that the dedication to service hasn’t gone unnoticed, either. On Aug. 16, the Apollo posted a picture of Ms. Hiotis to its Facebook page holding a $100 bill with a caption that read in part: “Apollo waitress Mariana Hiotis receives a $100 tip from her first customer today. Speaks volumes for her level of customer service.”

Among the commenters, one of whom wanted to know how much the bill was ($30, Ms. Hiotis responded), another wrote simply “She is the best waitress around.”

To celebrate the 25-year milestone, the

Apollo rolled back its entire menu pricing by 25 percent on Aug. 16 and offered its signature baklava for only 25 cents. Mr. Tinsley said the celebrations, which also included a live radio broadcast, “packed” the restaurant with a line out the door.

“It was most gratifying to see so many familiar faces, and to hear the many well wishes extended to our staff by customers,” he said. The Apollo’s regulars, many of whom have been coming since it opened its doors, sustain the business and are considered “part of our family in the truest sense of the word,” he added. And, to give back, the Apollo gives discounts to military personnel, as well as all law enforcement, fire and emergency medical personnel. It also includes contributions to a number of local causes and charities in its monthly budget, Mr. Tinsley said.

As in all businesses, and in the restaurant business particularly, Mr. Tinsley says, continual re-invention and improvement is key. To that end, this fall the Apollo will undergo the most extensive renovation project since its inception, including a new color scheme, new fixtures and various other “surprises” that Mr. Tinsley said the restaurant is waiting to unveil. n LEAH BULETTI is a staff writer for NNY magazines. Contact her at lbuletti@wdt.net or 661-2381.

SQUARE, from page 31 cards. While his bakery does, although not through app technology, Mr. Doxtater added that he also hasn’t started accepting cards on the go because he would have to invest in a smartphone.

This investment in technology has been worth it for other vendors. Matt Shaul, owner of micro-dairy Cranberry Ridge Farm in Williamstown in Oswego County, who also sells at the Watertown farmers market, said he purchased an iPad mini in April specifically to use Square. Though most of his business is still in cash, the increase in sales from cards has already “more than covered the cost,” he said.

“We lost some sales last year because we couldn’t take credit cards,” he said. “I felt like it was about time.”

Mr. Shaul said he initially heard about Square from a wholesale cheese customer.

Square has been “really easy to use,” he said, adding that he also likes being able to track purchases and email reports back home from the market.

“It’s been really useful to know what we’re selling so we know what to bring next time,” Mr. Shaul said. n LEAH BULETTI is a staff writer for NNY magazines. Contact her at lbuletti@wdt.net or 661-2381.

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BUSINESS HISTORY

Martin’s Pretzel Factory in the town of Theresa is staffed

by Mennonites who often sing religious hymns to pass the time while handtwisting the awardwinning pretzels, which have garnered national acclaim, including an eightminute segment on “Food Finds” that aired in 2003.

WATERTOWN DAILY TIMES ARCHIVES

A pretzel dynasty

n Mennonites continue to twist out winning pretzels

By LEAH BULETTI NNY Business

M

ost people likely associate the pretzel industry with Philadelphia, Pa., not the rural north country town of the same name. But fsince 1991, the Martins, a Mennonite family from Lancaster County, Pa., has been hand-twisting its pretzels inside a small, yet nationally known factory on state Route 26 in the town of Philadelphia.

Lloyd B. Martin, owner of the pretzel bakery, originally a schoolteacher and carpenter, became a full-time pretzel maker in 1974 when his uncle decided to sell his Akron, Pa.-based pretzel business, which he had operated since the 1930s. Mr. Martin ran the business in Akron for 10 years, but a desire to strike out as a dairy farmer led him to move with his wife and 10 children to a farm on Elm Ridge Road in Philadelphia, selling the business to his brother Clarence.

In Aug. 1991, he opened Martin’s Pretzels after realizing that “farming isn’t as prosperous as it was at one time,” as he told the Watertown Daily Times in a March 1992 article, employing his children and members of the Philadelphia Christian Fellowship Church where his family worships.

Since, the factory’s success has exploded, its three different types of old-fashioned pretzels—dark, light and

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NNY Business | September 2013

unsalted—earning acclaim and reviews in publications including Vogue, Business Week, McCall’s, the New York Times, the Daily News and the Post. The operation was also featured on “Food Finds,” a Food Network program that features regional delicacies. The eight-minute segment was filmed in fall 2002, airing in May 2003.

In the weeks that followed, pretzel demand spiked from about 200 boxes a week to nearly 500, the nationwide shipments the bakery had been making for about six years increasing dramatically, according to a February 2004 Times article. The factory initially produced about 50 boxes a week and sold them in the north country or at regional farmers markets. But then Mr. Martin met Alfred Milanese, a writer and photographer who gave glowing reviews of Martin’s pretzels to members of the media and show business who frequented his stand in the Greenmarket in New York City’s Union Square. That connection led to reviews by Zagat and Julia Child and even more glowing media attention.

Mr. Martin increased his trips to the city, which he had been making about every six weeks, to every three to four, bringing 500 eight-pound boxes each time.

The bakery’s dark or “hard” pretzels are favorites because of their wealth of flavor and long-lasting freshness. The hard pretzel is said to have originated when a young pretzel maker fell asleep while manning

his oven. Nervously overcompensating to ensure they were cooked, he then baked the pretzels for twice as long when he awoke.

Martin’s pretzels are prepared in a similar way, though the dough is dipped in different hot solutions to give the pretzels their golden-brown, shiny finished appearance.

The pretzels also don’t contain any magical or obscure ingredients, made only with flour, yeast, salt, sour dough and warm water. The proportions, though, are somewhat startling—150 pounds of flour, three or four pounds of yeast and one pound of salt per batch, though all measurements are done according to Mr. Martin’s eye and seeming sixth sense for the art of pretzel making.

After the dough is mixed for 10 minutes, it is cut into rolls, rolled by hand and twisted.

A good pretzel twister, Mr. Martin says, can shape about 20 a minute. All of the pretzel twisters are family members, neighbors or members of the church, and often break up the monotony of the twisting by singing hymns. Machines for twisting pretzels have been around since about 1933, and nearly all bakeries in Lancaster County are now automated; Mr. Martin, though, believes that while machine production would decrease production costs, it would destroy his “unique product.”

After shaping, the pretzels are fried in a caustic-soda solution for 15 seconds, salted, baked at 550 degrees for 10 minutes, put in a dryer, then bagged, sealed and boxed as

they come off a conveyor belt.

The Martin family is also credited with establishing a Christian school in the basement of the Philadelphia Christian Fellowship Church. The combination of hard work, education and family loyalty are highly prized values in the Mennonite community.

“It’s good to be busy and [it] teaches children the virtue of good hard work,” Mr. Martin said in the 1992 Times article.

“There may be unemployment in New York, but not in our family.”

In 1997, tragedy tested the family’s bonds when a kerosene heater exploded in the family’s farmhouse, igniting a fivegallon gas can on the porch and spreading a fire through the two-story residence, destroying the house and nearly all of the Martin’s possessions, including the pretzel factory’s fax machine—the business’s primary vehicle of communication with customers. The Martins reacted with customary acceptance in the workings of God and remarkable resilience of spirit.

“When there were no lives taken, it was pretty easy to just be content that the house burned down,” Mr. Martin’s wife, Mary Ann, told the Times shortly after the tragedy. The family’s 11 members lived in a farm trailer for several weeks, managing to keep up, undaunted, with the torrent of holiday pretzel orders.

“The Lord has given and the Lord has taken away,” she continued in the article.

“We value this for our family as an experience that strengthens your faith in God as someone to really trust in, and who is going to be there to meet our needs when there is a need.”

Nonetheless, neighbors and teams of Christians from all over New York and Pennsylvania came in droves to help the Martins rebuild and ease the financial strain, building a new 30-by-47-foot house through labor and material donations in only about a month.

And so, beneath a sign over the bakery’s door that reads “Christ Suffered To Bring Us To Good,” the Martins returned to doing what they knew, and doing it well—churning out batch after batch of delicious pretzels, today producing about 700 pounds of pretzels per day, four days a week. n 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.

September 2013 | NNY Business

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W H AT ’ S H A P P E N I N G H E R E ?

COMMUNITY BANK N.A. WHAT: Community Bank N.A. OWNER: Consolidation of branches, renovations on both sides of building for an additional 1,200 square-feet to accommodate four offices and an expanded meeting room. Third drive-up lane, new canopy, walk-up ATM, expanded parking lot, new signage, external siding, pitched roof with an entrance tower, renovated bathrooms and attic mechanical room behind vestibule.

LOCATION: 1125 Arsenal St., 1218 Arsenal St. location closed.

COMPLETION: October DECLARED VALUE: $538,000 GENERAL CONTRACTOR: Great Northern Construction, Watertown LOCAL JOBS: No new jobs will be created, all staff at 1218 Arsenal St. location will have jobs at refurbished bank.

HOURS: Remaining the same through construction and when new branch opens. Lobby: Monday to Wednesday 9 a.m. to 3 p.m.; Thursday to Friday 9 a.m. to 5 p.m. Drive-up: Monday to Friday 8:30 a.m. to 5 p.m.; Saturday 9 a.m. to noon.

KEN EYSAMAN | NNY BUSINESS

The Community Bank at 1218 Arsenal St. in Watertown has closed and merged into a rennovated and expanded location at 1125 Arsenal St. The new bank is slated to open in October. No jobs will be lost.

NEXT MONTH

I

n October we examine the impact of growth in Northern New York since it landed the 10th Mountain Division at Fort Drum in the mid-1980s.

Also coming next month: n SETTING UP SHOP: Syracuse attorney Mark Wladis has been making inroads in the north country for some time. Now his firm is putting down roots in Watertown. n A DIAMOND MILESTONE: In the 1920s, a French chef named Jean started Jean’s Beans and peddled his famous baked beans on the streets of Syracuse. Today, only one store remains — in Watertown — which is celebrating 60 years. We tell its story. n 20 QUESTIONS: An in-depth interview with a north country business leader. n PLUS: Small Business Startup, NNY Snapshot, Economically Speaking, Commerce Corner, Business Law, 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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BusIness

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