Against the backdrop of sharply rising costs for health-care insurance and energy, business, large and small, continued to pursue growth in Central New York during the past year.
Banking companies such as Tompkins Trustco, First Niagara Financial, and NBT Bancorp were busy acquiring financialservices businesses across Upstate to diversify and add to their product offerings and geographic presence.
Businesses in other industries also got in on the act. Realty USA, Kinney Drugs, and Saga Communications made key acquisitions in Central New York in 2005.
Other companies started or completed major expansion and building efforts. They included Metro Mattress, CFM Food Distributors, Advanced Design Consulting, Seneca Data, Syracuse Research, and Onondaga Beverage.
Other firms closed down or consolidated operations, because of rising costs or sagging sales.
Here is a rundown of the year that was in Central New York business.
JANUARY
On Jan. 7, we reported that Tompkins Insurance Agencies in Ithaca, a subsidiary of Tompkins Trustco, Inc. (AMEX: TNT), purchased another Ithaca-based insurer, Banfield & Associates, Inc. Tompkins Insurance had also acquired three agencies in Western New York. The Jan. 7 issue also highlighted a study that found domestic car and truck sales outpace sales of foreign-made vehicles in the Syracuse market.
Then, on Jan. 14, we learned that trucking giant USF Corp. (NASDAQ: USFC) struck back at the Teamsters union in federal court. In the Northern District of New York in Syracuse, the Chicago-based firm filed suit against the union, charging that its May 2004 work stoppage violated the National Labor Relations Act. That week, we reported that CH Insurance Brokerage, Inc. bought a Rochester-based insurance agency, DHH Insurance, which serves the deaf and hard-of-hearing market.
The Jan. 21 edition revealed that Driver's Village in Cicero had built a 12,000-square-foot conference center and was hosting business events for up to 800 attendees. This issue also covered the new environmental-testing lab of Severn Trent Laboratories, which opened on Boss Road in DeWitt.
The Jan 28 issue reported on declining hotel occupancy in Syracuse the previous year. Through the end of November 2004, the area's occupancy rate stood at 61.5 percent, down by 3.6 percent from the year-earlier period, according to a Smith Travel Research study.
FEBRUARY
The Feb. 4 issue came out in time for Super Bowl XXXIX. Local bars added staff people to serve an influx of fans and patrons coming out to watch former Syracuse University quarterback Donovan McNabb, now with the Philadelphia Eagles, take on the New England Patriots.
On Feb. 7, we learned that out-of-town investors were rapidly snapping up affordable real estate in Central New York. According to the article, it takes about 10 years to recoup one's investment in a rental property in Central New York, compared to about 15 years in regions with pricier real-estate markets. This issue also revealed that a Marylandbased, environmental-consulting firm, Apex Environmental, Inc. had entered the Syracuse market
The bankruptcy of airlines US Airways, Inc. and United Air Lines, Inc., left Hancock International Airport in a state of uncertainty in 2005, our Feb. 18 issue reported. After one of its busiest years in more than a decade in 2004, the bankruptcy of these firms. and a 2004 net loss of more than $5 billion for Delta Air Lines, threatened the stability of Syracuse's airport.
Another bankruptcy in Syracuse also topped The Business Journal's coverage in February. Syracuse Blue Print Co., Inc., a 95-year-old commercial-art firm, filed for Chapter 11 protection, we reported on Feb. 25. The shift from hand drafting to computers eliminated most of the company's customer base. We also told readers about Turning Stone Resort & Casino's plans to open a members-only, fine-dining French restaurant, Club tow. one, atop its new 19-story Tower Hotel at Turning Stone.
MARCH
The Business Journal reported, on March 4, that Community Bank System, Inc. was planning branch acquisitions in upstate New York and across northeastern Pennsylvania. This issue also highlighted the success of "Dining Week Downtown," coordinated by the Downtown Committee, which boosted business for participating restaurants by roughly 30 percent.
On March 11, readers learned that an offshoot of an Old Forge-based cabinet manufacturer was moving into the former Caldwell & Ward Brass building on Burnet Avenue in Syracuse. Cabinet Fabrication Group, LLC, or "CabFab," started building a showroom and manufacturing facility to occupy 18,000 square feet of the 30,000-square-foot building. We also reported that Crest CadillacOldsmobile had filed suit against General Motors Corp. over the shutdown of the automaker's Oldsmobile line.
Syracuse-based law firm Scolaro, Schulman, Cohen, Fetter & Burstein, P.C. expanded to Rochester, the paper reported on March 18. The firm hired a mainstay of the Rochester legal scene, Ronald A. Mittleman, and opened a 3,000-square-foot, temporary office in the Academy Building on Fitzhugh Street in downtown Rochester. Mittleman had spent the previous 20 years as partner at Lacy, Katzen, Ryen & Mittleman, LLP in Rochester.
The March 25 issue reported that Stantec, Inc., a publicly traded Edmonton, Alberta-based engineering and design firm, closed its 25-person office in DeWitt. The corporation closed the Widewaters Office Park division because it didn't generate enough sales to financially justify keeping it open. The March 25 publication also explored how the Sarbanes-Oxley Act - the 2002 auditing-standards law aimed at curbing corporate fraud affected small accounting firms. Although auditing fees at publicly traded companies like PriceWaterhouseCoopers and KPMG skyrocketed (134 percent and 109 percent, respectively), privately held accounting finns remained largely unaffected by the legislation, according to a survey of Fortune 500 companies conducted by the Association of Audit Committee Members.
APRIL
April started with a story about a mattress-dealer expansion. On April 1, The Business Journal reported that Metro Mattress, the largest specialty-mattress retailer in upstate New York was opening 12 new stores - including two in the Syracuse area. Readers also learned that Syracuse University's Martin J. Whitman School of Management hired a new dean, Melvin T. Stith. He came to SU from a deanship at the business school at Florida State University.
On April 8, we reported that Cicero-based manufacturing firm, ICM Corp., had decided to stay in Central New York after considering a move to the southern part of the country or China. After a three-year review process, the firm announced that it would stay in the area and said it would expand its operations at a 15-acre site in the Hancock Airpark. The firm planned to move its headquarters from a 40,000-square-foot space to its new, 83,000-square-foot building.
The April 15 issue reported on areawide shortage of large, topshelf commercial space. Readers learned that businesses in need of more than 25,000 square feet of space had limited options in Central New York - and even more limited choices for firms seeking modern facilities in prime locations. The result: a 10-percent to 15-percent rise in 2005 for both lease rates and purchase prices for large, relatively new commercial space in good locations, real-estate agents reported.
Specialty Welding & Fabricating of New York, Inc. consolidated its multiple operations under one roof, the Business Journal reported on April 22. The firm moved its four separate operations - three on New Court Avenue and one on Falso Drive, totaling 68,000 square feet - to a 135,000-square-foot building at 1025 Hiawatha Blvd. in Syracuse. This issue also chronicled the Greater Cazenovia Area Chamber of Commerce's struggle to maintain its five-year-old business incubator, the Cazenovia Business Center, after the expiration of its state grant.
On April 29, readers learned that Tractor Supply Co., which already had nine stores in Central New York, was opening two stores in Onondaga County - in East Syracuse and Clay. The firm planned to finish construction of the two 12,500-squarefoot stores and open for business by November. The issue also reported that all Charter One Bank locations in Central New York would formally don the Citizens Bank name, logo, and signage starting May 13.
MAY
May brought news of a $6-million expansion for CFM Food Distributors, Inc., a third-generation, family-owned company. CFM made plans for a new, 160,000-square-foot headquarters in the Watertown area to replace its current 100,000-square-foot facility at 580 W. Main Street. CFM said it needed more room because of strong sales growth. In 2004, the company reached $35 million in revenue, an increase of about 40 percent from 2003. The company forecasts 40-percent growth in 2005 and 20-plus-percent growth in 2006, taking sales to the $60 million. The growth has come from steady expansion of CFM's markets. The company distributes to 14 states.
After 19 years with the Chenango County Chamber of Commerce, including 10 years as CEO, Tammy J. Carnrike announced in May she was leaving for Detroit. A native of Norwich, she worked for Procter & Gamble in acquisitions and licensing before moving into chamber management in 1986. The Chenango Chamber has more than 600 members. Carnrike left to become executive vice president for the nation's largest chamber of commerce - the Detroit Regional Chamber. The Detroit region includes 10 counties in Michigan with a population of 5 million and boasts a membership of 21,000. The Detroit Regional Chamber staff numbers 100. Later in the year, Dave Hall, a retired Air Force colonel, succeeded Carnrike.
A U. S. district judge ruled in May that New York's Labor Law Section 211-a was pre-empted by the National Labor Relations Act (NLRA), thus enjoining the state from implementing or enforcing the statute. The law, which was expanded in December 2002, barred organizations that receive state funding, including Medicaid, from using such monies to either encourage or discourage union organizing.
The Business Journal also reported in May that area companies were searching for ways to increase the local talent pool of high-tech workers, especially in engineering. Successful recruiting, according to companies, means collaborating on efforts to draw more qualified people to the region and encourage local young people to pursue science and math careers, like engineering. Syracuse companies are generally looking for workers in very specialized fields, such as electrical or radar-systems engineering, for example. And companies like Lockheed Martin have numerous security and clearance requirements, because of the sensitive nature of government work. That presents additional recruiting challenges, local officials said.
JUNE
The Business Journal reported in June that the New York Power Authority's relicensing projects provided some good news for St. Lawrence County's recreational facilities as well as for Perras Excavating, Inc. Perras secured a $1.9 million contract to improve seven St. Lawrence County recreational sites. The Massena-based company, a union con.tractor, employs more than 100. As part of the Power Authority's 50year license renewal, it has funded millions of dollars in improvements along the St. Lawrence Seaway. Perras was working on several of those projects in June, including rebuilding the town boat launch and making the site comply with the Americans With Disabilities Act. In Louisville, Perras Excavating was working on a trail running from Massena Country Club to Whalen Park.
In June we also reported that Saga Communications (NYSE: SGA) had completed its acquisition of Ithaca-based Eagle Broadcasting, which operated four stations from a 5,800square-foot facility on Hanshaw Road. After the sale, the stations became known as the Cayuga Group. Saga, based in Michigan, owns more than 80 radio stations in 22 media markets. It paid $13.25 million for Eagle's assets and expected the four new stations to add $2.4 million in net revenue in 2006, as well as $900,000 in station operating income. In 2004, Saga posted $15.8 million in net income on $134.6 million in revenues. Federal Communications Commission approval of the sale was stalled in 2004 by petitions from a local media-independence group and residents. The FCC denied the petitions May 4 and Saga closed on the transaction May 31.
NBT Bancorp, Inc. (NASDAQ: NBTB) announced its own acquisition in June. The company agreed to buy Gloversvillebased CNB Bancorp, Inc. (OTC: CNBI.OB) in a cash and stock deal worth about $89 million. Under the terms of the agreement, CNB shareholders were to be given the choice between receiving either $38 in cash or 1.64 shares of NBT common stock for each share of CNB common stock, subject to terms that call for the transaction to be 55 percent stock and 45 percent cash. NBT's shares closed at $23.59 a share on June 13, making 1.64 shares worth $38.69. Norwich-based NBT said it identified cost savings that it expected would allow the proposed acquisition to add to its earnings per share within the first year. Specifically it expected to save 30 percent of CNB's projected non-interest expense in fiscal year 2006.
Greek Peak ski resort said in June it has plans for a $35million, 13,000-square-foot conference center, 140-room hotel, and an indoor water park with an adjacent 18-hole golf course. The announcement is part of several existing and planned recreational improvements in Virgil, including a 25-acre, springfed mountain lake. Hope Lake, which offers hiking, boating, swimming, sailing, and fishing, is owned by the Town of Virgil, but managed by Greek Peak and has been open since 2001. The community is also planning a 1,500-unit, mixed-use development, which will include residential homes, vacation homes, condominiums, five-acre lots, and quarter-share buildings and be located across the street from the ski resort.
JULY
In July we reported on a planned 15,000-square-foot expansion by Isadore A. Rapasadi & Sons - a third-generation, family-owned and operated food grower and distributor, dubbed "the onion and potato people." The business needed more space to meet increased demand for its products. The company ships between 10 and 15 truckloads of onions and potatoes per day. The additional 15,000 square feet will be used to store packaged products before they are shipped on one of 13 company-owned tractortrailers. Many of Rapasadi's customers submit last-minute orders, and the extra space will allow the company to package products ahead of time. Revenue at the company has increased about 20 percent over the last few years.
Car dealers throughout the country saw increased sales from U.S. automakers' employee-pricing promotions and Central New York dealers were no different. The Business Journal reported in July that local General-Motors dealerships saw a surge of new buyers thanks to the promotion. Nationally, GM's U.S. sales rose 41 percent in June, the company's best sales month in 19 years. Local dealers said the program attracted buyers who don't traditionally purchase GM automobiles and some who didn't necessarily need a new car, but decided to purchase a vehicle while the company was offering a great deal.
Advanced Design Consulting USA, Inc. (ADC), a $4-million engineering and manufacturing firm, went public in July With plans for a major expansion. Company leaders hope to be in a new, larger building within the next year or two. The current facility has about 15,000 square feet of office, testing and assembly, and manufacturing space. The new building would have at least 50,000 square feet and cost $3 million to $5 million to build. The company provides devices, integrated systems, and high-precision components and instruments to commercial firms and academic and government institutions throughout the world.
The Pascale family said in July it planned to open a third liquor store, this one located in Cicero. Anthony Pascale, brother of local entrepreneurs Neal and Charles Pascale, signed a sevenyear lease for a 12,000-square-foot facility on Brewerton, Road next to China Towne Furniture. Neal Pascale owns Pascale Liquors on Route 57 in Liverpool and Charles Pascale owns Pascale's Liquor Square on, Erie Boulevard with managing partner Brian Hughes. The new store is Pascale Wine and Spirits and is, the. first business venture for Anthony Pascale, who worked as athletic director at West Genesee High School for 14 years and is also a former teacher at. Liverpool High School.
Computer manufacturer, Seneca Data disclosed expansion.. plans. in July. The $90-million company said it would double its space to a total of 80,000 square feet. The new addition, planned for 2,006, will be primarily a warehouse, which will give the company room to expand its manufacturing facilities in its existing space. The new manufacturing space will have 30,000 to 38,000 square feet, compared with 20,000 square feet now. The expansion will allow Seneca Data to increase its production from 6,000 units per month to 10,000. Along with the new addition, the company said it plans to add 30 people to its current work force of 130. The company projected sales of $102 million for 2005. Average revenue growth at Seneca Data over the past four years has been 17 percent to 20 percent annually.
AUGUST
In August, The Business Journal reported that ExxonMobil was in negotiations with Central New York service-station operators to sell the company's real estate to its franchised dealers. Each transaction would add hundreds of thousands of dollars to any operator's cost of entry into the business. An Exxon spokeswoman said the company was going to an all-distributor system because it was more efficient and effective. Negotiations were in progress with 103 upstate New York dealer sites in which Exxon owned the property, although the company couldn't confirm how many dealers were in Central New York.
The Business Journal also reported in August that AAI (Auburn Armature, Inc.), an electrical-products distributor and service company, opened a 33,000-square-foot sales branch at the former Telergy building in DeWitt. The 6500 New Venture Gear Drive branch was designed to increase the company's share of the electrical-products market in the Syracuse-metropolitan area. AAI stocks products ranging from transformers and wiring to electrical controls and motors. Syracuse was the first choice for a branch because it was the most underserved by existing distributors, according to the company. It spent $1.5 million renovating the Syracuse space. AAI employs 87, with seven of those in Syracuse.
East Syracuse-based BOMAC, Inc. announced new ownership in August. Longtime employees Kevin Knecht and Mark Pauls purchased the company from fanner president Jeffrey Randolph, who has retired. Terms of the sale were not disclosed. Knecht and Pauls share equal ownership of BOMAC. The company employs 24 and generates annual revenue of about $5 million. BOMAC makes industrial controls. It designs, builds, installs, and repairs the controls that let companies do everything from roll steel to wrap candy. BOMAC has a 2 1,000-square-foot headquarters building in the Town of DeWitt, adjacent to the New York State Thruway, as well as a 4,000-square-foot Elmira office to serve Southern-Tier customers, such as Corning, Inc. Most of the company's work comes from outside Central New York.
Stephen deMello was named head of ICConnect, an organization of information and technology businesses focused on promoting world-class technology applications in Central New York. ICConnect sprang from the Metropolitan Development Association of Syracuse and Central New York's 2004 Essential New York Initiative - a 12-county, economicdevelopment plan - which sought to encourage the growth of an information-communication technology cluster. deMello is a Cornell University graduate with a B.S. in mechanical engineering and a member of the American Society of Mechanical Engineers.
SEPTEMBER
Some Syracuse University students started off the school year with more upscale accommodations than their peers, we reported in September. Approximately 30 incoming freshmen took up residence at the Syracuse University Sheraton Hotel. Increased enrollment required the university to put students up at its hotel. Even with the housing crunch, SU opened its doors to Gulf Coast students displaced by Hurricane Katrina.
Ikon Office Solutions sold its information-technology unit to Empire Investment Holdings, LLC. The unit became a standalone business called Vitec Solutions, LLC.
Nonprofits and businesses were also on the move this month. Vera House decided to move its offices from 2112 Erie Blvd. E. in Syracuse to a new location at 6181 Thomson Road in DeWitt. M&T Bank moved its Binghamton branch from Chenango St. to Lexington Park Center.
A former Cornell researcher, Meena Chandok, filed a defamation suit in federal court, alleging that her lab supervisor had smeared her professional reputation by claiming she had faked research.
Cresthill Suites Hotel became a Hawthorn Suites franchise. The Hawthorn name is also on Armory Square's largest hotel.
Andrew Picco, the self-described "Furniture Guy," announced plans to buy Superior Office Interiors.
In important people-news affecting the local real-estate scene, Charles Sangster moved from The Widewaters Group to J.F. Real Estate.
On the expansion/renovation front, Onondaga Beverage began building a new 20,000-square-foot warehouse, while the Everson Museum of Art kicked off a $1.2 million renovation. J.G.B. Enterprises began adding 15,000 square feet to its Salina facility. The company would further expand later in the fall. Proshred moved into a new office at 6519 Towpath Road. And St. Joseph's Hospital Health Center kicked off a $500,000 expansion to its dental practice.
Also, Hamilton College completed its $56-million Science Center. The 200,000-square-foot facility is part of $73 million in campus improvements at the school.
As part of its Syracuse expansion efforts, Gouverneur-based Kinney Drugs acquired the Figs & Olives pharmacy on East Brighton Ave. in Syracuse and announced plans for a new store to be built nearby.
OCTOBER
The second 40 Below Summit drew young Central New Yorkers to the Onondaga County Convention Center at Oncenter for a day of networking and learning. Keynote speaker Tim Green, a former Syracuse University football star, spoke about his love for the area and joked that his political plans would consist of coaching the Skaneateles wrestling team this winter.
In a major area acquisition, Arcadis, a Dutch company, purchased the Syracuse-based environmental-consulting firm of Blasland, Bouck & Lee.
James Sparkes joined the Sugarman Law Firm after 13 years at Harris Beach, LLP.
SUNY Oswego kicked off a $17-million capital campaign with a visit from alumnus Al Roker, weatherman for NBC's top-rated Today show. Roker helped students to form a giant version of the word "OSWEGO" for a photograph commemorating the launch.
High gas prices following the Gulf Coast hurricanes helped further the decline in sales of gas-guzzling sport-utility-vehicles.
The Grimaldi and Nelkin accounting firm moved its offices to a lower floor at its 650 James St. building.
Imaging and Sensing Technology, Inc. (IST) purchased a line of robotics from British Columbia-based Inuktun Services, Ltd. Horseheads-based IST sells equipment for the world's nuclear power industry.
Christopher Geherin purchased Auburn's Builder's Choice Lumber Co. from William Foley. The facility includes a 38,000 square-foot drive-in warehouse. M&T Bank financed the deal.
Fuse2005, a technology conference, took place October 17-18 at the Syracuse Technology Garden.
Central New York Sales and Marketing Executives named Syracuse University Chancellor Nancy Cantor as the group's 2006 "Crystal Ball Award" winner.
William Commiso, Jr. opened a showroom for his Bill's Carpet Service At 110 N. Main St. in North Syracuse.
Ernst & Young partner Carolyn Buck Luce spoke at the Women's Fund fundraiser October 17. The speech attracted 200 to the Holiday Inn Syracuse/Liverpool.
Monica Coleman left her marketing post at Dairylea to become the communications director at the Metropolitan Development Association of Syracuse and Central New York.
The Carta Group moved its offices over one building to 5786 Widewaters Parkway in DeWitt's Widewaters Office Park.
The New York Air National Guard took 45 employers on a "Bosslift" refueling flight to show them what Guard members do while not at work.
Bestway Enterprises, Inc. purchased the former Saulsbury plant in Preble And announced plans to manufacture a woodcomposite building material.
NOVEMBER
The third-annual "Best Practices for Nonprofits" seminar took place at the Syracuse/Liverpool Holiday Inn. Sponsored by the law firm of Bond, Schoeneck, & King and the TFG CPA firm presented the event. Dannible & McKee, LLP presented its 28th annual Tax and Financial Planning conference
In hospitality-industry news, Ithaca's La Tourelle inn added the August Moon spa; Eddie's Downtown restaurant opened in Oneida; and the Poppy Garden Cafe prepared to open in Syracuse's Clinton Square.
Laboratory Alliance of Central New York began realigning its workspaces, adding 8,000 square-feet to its laboratory facility.
Pyramid Brokerage added an environmental unit.
Oswego Hospital opened a $14-million surgical unit.
Finger Lakes Business Services moved its Syracuse call center to 3532 James St. in Syracuse from a location a block away.
RealtyUSA entered the Syracuse market by purchasing the assets of Gallinger/GMAC Real Estate of Syracuse.
Tompkins Trustco, Inc. (AMEX: TMP) agreed to acquire AM&M Financial Services, Inc., a fee-based, financial-planning firm based in the Rochester suburbs, to boost its presence in the Rochester market.
Attorney David S. Kimpel joined the law firm of Ali, Pappas, & Cox in Syracuse.
DECEMBER
Hiscock & Barclay, LLP, celebrated 150 years in business and the law firm's recent move to One Park Place in Syracuse.
On the expansion front, Aspen Dental announced plans to build a 44,500 squarefoot facility at the Sanders Creek Corporate Center in DeWitt. And, Erie Materials said it was planning a 75,000 square-foot facility in Syracuse.
Also, Skaneateles' Mirbeau spa completed a 4,800 square-foot addition and announced plans for more Mirbeau spas in Wisconsin and the Hudson Valley.
In restaurant news, The Business Journal reported that Daniel and Susana Carman from the Elmira area opened Casa Mexicana in the Town of Clay. Entrepreneur Daniel Sorber opened the Broadway Cafe in Syracuse's Valley section. The cafe also houses the Arctic Island ice-cream shop.
Batteries Plus said it was seeking locations for four franchised locations in the Syracuse market as well as single stores in other upstate cities.
Syracuse finished out the year as a place for companies to meet in federal court over intellectual-property disputes. Film studios sued an unknown movie pirate traced to a Cornell University server. Michelin sued a Canadian tire company in Syracuse over a Web illustration. Watertown's Car-Freshner Corp. sued a Massachusetts company that makes a "Little Tree" style air freshener shaped like a marijuana leaf called "No officer, that's my car freshener!" The offending air freshener gives off the odor of growing marijuana plants.
The end of the year also brought leadership-transition announcements at major local companies - Welch Allyn, Community Bank System, and Tompkins Trustco.
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