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Smith Market wins $25,000 prize in Community Foundation’s Impact Opportunity Challenge
UTICA, N.Y. — The Community Foundation of Herkimer & Oneida Counties, Inc. has selected Smith Market as the winner of its $25,000 Impact Opportunity Challenge.

Syracuse cancels annual Fan Fest event over concerns about the weather
SYRACUSE, N.Y. — Syracuse University will not hold this weekend’s annual Fan Fest event, which was scheduled for Saturday, “due to the impending storms being forecast

Exelon’s acquisition of FitzPatrick nuclear-power plant to close in 2017
SCRIBA — Exelon Generation’s (NYSE: EXC) acquisition of the James A. FitzPatrick nuclear-power plant in Scriba should close in the second quarter of 2017. Under the deal totaling $110 million, New Orleans, Louisiana–based Entergy would transfer FitzPatrick’s operating license to Chicago, Illinois–based Exelon, according to a joint news release that Entergy issued Aug. 9. Exelon
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SCRIBA — Exelon Generation’s (NYSE: EXC) acquisition of the James A. FitzPatrick nuclear-power plant in Scriba should close in the second quarter of 2017.
Under the deal totaling $110 million, New Orleans, Louisiana–based Entergy would transfer FitzPatrick’s operating license to Chicago, Illinois–based Exelon, according to a joint news release that Entergy issued Aug. 9. Exelon describes itself as the “owner of the nation’s largest nuclear fleet.”
The agreement to continue operation of the plant will save nearly 600 jobs, the office of Gov. Andrew Cuomo said in a news release issued the same day.
The New York Power Authority (NYPA) has agreed to transfer the decommissioning trust fund and liability for FitzPatrick to Entergy. The firm would then transfer the fund and associated liability to Exelon, if regulatory approvals are obtained and the transaction closes.
Transaction closure is dependent upon regulatory review and approval by state and federal agencies, including the U.S. Department of Justice; the Nuclear Regulatory Commission; the Federal Energy Regulatory Commission; and the New York State Public Service Commission (PSC).
The firms credited Cuomo with helping to facilitate the transaction. Cuomo had asked the PSC to adopt a clean-energy standard, which will provide hundreds of millions of dollars in subsidies, funded by utility customers, to help keep nuclear-power plants open in upstate New York.
Cuomo announced the pending sale at a rally in Scriba in support of the FitzPatrick plant the morning of Aug. 9.
“Saving FitzPatrick is an enormous win for Central New York and the entire state, preserving hundreds of jobs and maintaining a reliable, carbon-free power source for New Yorkers,” Cuomo said in the release. “FitzPatrick’s continued operation is essential both to the regional economy and our nation-leading efforts to power the state with 50 percent renewable energy by 2030.”
IBEW, UEJ reaction
The FitzPatrick nuclear-power plant has helped shape Oswego’s middle class by offering well-paying, high-skilled jobs and “providing a ladder of opportunity” for all New Yorkers, Ted Skerpon, president and chair of the IBEW Local 97 Utility Labor Council, said in Cuomo’s release.
IBEW is short for International Brotherhood of Electrical Workers, which represents workers at the FitzPatrick and other upstate New York nuclear-power plants.
FitzPatrick’s role as a “vital economic engine for our region cannot be denied,” L. Michael Treadwell, CEO of the County of Oswego Industrial Development Agency, said in a statement that the Upstate Energy Jobs (UEJ) Coalition released the afternoon of Aug. 9. Treadwell is a member of UEJ.
“[FitzPatrick] supplies 615 jobs, contributes $500 million per year in regional economic activity and brings in $17.3 million in annual property taxes. In addition, FitzPatrick provides opportunities for 1,000 building tradesmen and skilled workers who are involved in the refueling and maintenance of the facility,” said Treadwell.
FitzPatrick’s current employee count is 545. The plant did have 615 workers at the time of the initial plant-closure announcement, an Entergy spokesperson says.
UEJ is a coalition of more than 130 upstate New York elected representatives, business leaders, members of organized labor, education institutions, economic-development organizations, and community leaders who are “leading efforts to raise awareness among policymakers of the importance of keeping upstate New York’s nuclear-energy plants open,” according to the group’s description on its statement.
Clean-energy standard
The PSC on Aug. 1 approved New York’s clean-energy standard (CES).
Entergy, which owns the FitzPatrick nuclear-power plant, on July 13 announced that it was in discussions with Exelon for the potential sale of the FitzPatrick plant. Entergy on Nov. 2, 2015, announced plans to close and decommission the plant.
Exelon operates the Nine Mile Point nuclear-power station, which is also located in Scriba.
The July 13 Entergy news release included a quote from Bill Mohl, president of Entergy wholesale commodities, who indicated “we are working with Exelon to come to commercial terms on a sale transaction that depends largely on the final terms and timeliness of the New York State Clean Energy Standard.”
The clean-energy standard provides “bridge support” to upstate nuclear-power plants to “ensure that critical progress on greenhouse-gas emissions reductions is sustained” as the state works toward achieving its goal to generate 50 percent of New York’s electricity from renewable-energy sources like wind and solar by 2030, according to Cuomo’s office.
The CES, which the PSC approved Aug. 1, will also “spur hundreds of millions of dollars in short-term investments” in energy infrastructure in upstate New York, both Entergy and Exelon contend.
Without the CES, upstate nuclear plants “would have been at risk of closure,” the firms added.
Contact Reinhardt at ereinhardt@cnybj.com
Executive director of Ithaca’s Sciencenter announces retirement
ITHACA — Charlie Trautmann, executive director of the Sciencenter — a nonprofit hands-on science museum in Ithaca, has announced his retirement from the organization, effective next spring. During his 25-year tenure with the museum, Trautmann has “shepherded the Sciencenter from a tiny, all-volunteer, storefront venture to a vibrant, welcoming, nationally recognized institution,” the Sciencenter contended
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ITHACA — Charlie Trautmann, executive director of the Sciencenter — a nonprofit hands-on science museum in Ithaca, has announced his retirement from the organization, effective next spring.
During his 25-year tenure with the museum, Trautmann has “shepherded the Sciencenter from a tiny, all-volunteer, storefront venture to a vibrant, welcoming, nationally recognized institution,” the Sciencenter contended in a news release.
The Sciencenter said it now receives 100,000 visitors annually and reaches more than 1 million guests nationally through its traveling exhibitions and national programs.
“The stars must have been in a favorable alignment when Charlie called to inquire about the position of executive director of a newly created science museum that only existed in the minds of a few enthusiastic people,” Sciencenter founders Debbie Levin and Ilma Levine said in the release. “He had faith in us and we put our faith in him. The result is a Sciencenter that the community built and that we all take pride in.
Trautmann has been involved in research and public STEM education for 40 years. Under his leadership, the Sciencenter expanded the traditional science museum family audience from the elementary school years (ages 5-11) to include programs for both preschool (ages 0-5) and middle school (ages 11-14) children. He also worked to boost museum access to families from low-income, rural, and minority backgrounds, the release stated.
Trautmann is an adjunct professor in Cornell University’s School of Civil and Environmental Engineering and has chaired or served as an officer on many community boards.
Following his retirement, Trautmann will spend six months on sabbatical leave at the Rachel Carson Center for Environment and Society in Munich, Germany with funding from the Alexander von Humboldt Foundation. His research will focus on how experiences with nature during the first five years of life affect attitudes and behavior related to the environment later in life, according to the release.
Contact The Business Journal News Network at news@cnybj.com
Small-group market health-insurance rates in N.Y. to rise 8% in 2017
Health-insurance premiums in the Empire State’s small-group market will rise by an average 8.3 percent in 2017, the New York State Department of Financial Services (DFS), which regulates the state’s insurance market, announced Aug. 5. Health insurers had requested an average rate increase of 12.3 percent, DFS said in a news release. Premium rates for
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Health-insurance premiums in the Empire State’s small-group market will rise by an average 8.3 percent in 2017, the New York State Department of Financial Services (DFS), which regulates the state’s insurance market, announced Aug. 5.
Health insurers had requested an average rate increase of 12.3 percent, DFS said in a news release.
Premium rates for Excellus BlueCross BlueShield’s small-group health plans in the state will rise by 10.7 percent in 2017. Excellus had requested an average increase of 12.3 percent, according to DFS data. Rochester–based Excellus is the largest health insurer in Central New York.
More than one million New Yorkers are enrolled in small-group plans.
The coming premium increases will be much higher in New York’s individual health-insurance market.
State insurance regulators approved a 16.6 percent average hike in premiums, below the 19.3 percent average increase that insurers had sought, DFS said.
“Like other states throughout the nation,” the 2017 rate of increase for individuals in New York is higher than in past years “partly due” to the termination of the federal-reinsurance program which accounts for 5.5 percent of the rate increase, the department said.
More than 350,000 New Yorkers are enrolled in an individual plan on NY State of Health, New York’s official health-plan marketplace. Many of those customers qualify for tax credits that reduce their coverage costs.
Drivers
The main drivers of premium-rate increases are rising underlying medical costs, which according to DFS, is “reflecting a nationwide trend.”
For the announced 2017 rates, DFS estimated that insurers’ average increase in expected insurance claims paid was about 7 percent for the individual market and 8.5 percent for the small-group market.
Inpatient hospital and drug costs account for the largest share of medical expenses (more than 40 percent), followed by ambulatory surgery (12 percent) and diagnostic testing/lab/x-ray (11 percent).
The largest growth in spending occurred in drugs, with “very large” increases attributable to Hepatitis C drugs (54 percent unit-cost increase and 14 percent more use of the drug), DFS said.
Minimum-loss ratio
Under New York law, insurers must spend a “specific minimum” percentage of premium dollars on health-care costs, according to DFS.
The balance goes to paying for insurer administrative costs and profit.
For individual and small-group policies, that minimum requirement, called the minimum-loss ratio, is 82 percent.
The 2017 rates that DFS approved estimate that insurers will spend “even higher” percentages on health-care costs, an 85.5 percent overall average for small-group plans and an 87.2 percent overall average for individual plans, the department said.
Contact Reinhardt at ereinhardt@cnybj.com

Entrepreneur Holdrege builds an idea into Idea Kraft
BINGHAMTON — Ewelina Zajac came to America as a college-exchange student in 2002. She spent the summer at Scott’s Family Resort on Oquaga Lake, before returning to her native Poland to complete a master’s degree with honors in industrial and graphic design at the Academy of Fine Arts in Wroclaw. She graduated on a Thursday
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BINGHAMTON — Ewelina Zajac came to America as a college-exchange student in 2002. She spent the summer at Scott’s Family Resort on Oquaga Lake, before returning to her native Poland to complete a master’s degree with honors in industrial and graphic design at the Academy of Fine Arts in Wroclaw. She graduated on a Thursday in February 2004 and boarded a plane for Binghamton on Sunday with $300 in cash and a backpack containing her wardrobe.
Despite her halting English and no network of business associates, Zajac landed a job in 2004 at MeadWestvaco (now called ACCO Brands) in Sidney (Delaware County), starting as a junior designer and advancing to a position as a senior-designer of product lines sold in superstores. Later that year, she married Michael Holdrege. In 2011, she joined Modern Marketing Concepts (MMC) as a senior designer. On Jan. 1, 2013, Zajac-Holdrege (Holdrege) left MMC to work full time at her own company — Holdrege Design, LLC, and rebranded in 2014 as a d/b/a called Idea Kraft.
Holdrege’s decision to immigrate to the U.S. and start a business is a pattern long recognized but only recently documented. The Ewing Marion Kauffman Foundation reports in 2012 that immigrants are twice as likely as native-born Americans to become entrepreneurs and more than half of American companies valued at $1 billion or more were started by immigrants. A 2010 study concludes that 40 percent of the Fortune-500 companies were founded by immigrants or their children. In 2014, 28.5 percent of new entrepreneurs were immigrants, up from 13.3 percent in 1997. And between 2006 and 2012, one-quarter of the engineering and technology companies that started in the U.S. included at least one key founder who was an immigrant. In Silicon Valley, the number is 50 percent.
The 2015 “Global Entrepreneurship Monitor” report issued jointly by Babson College and Baruch College says that first-generation Americans view their environment through a different lens, seeing unique opportunities. The report goes on to say that immigrant business owners have an entrepreneurial attitude best described as fearless determination, with 59 percent believing they are capable of running their own business.
Holdrege’s business start
“I didn’t launch my business cold turkey,” says Holdrege, Idea Kraft’s president and creative director. “While working at Westvaco and MMC, I had done some freelancing, so I had a few clients. What convinced me to work full time at my own business was a contract from E-Z RED to build the brand for the company. I didn’t have any business education, experience, or recipe for success, but I wasn’t concerned. Maybe that’s because I grew up in a family where my parents and an uncle were entrepreneurs. I just felt that the only thing worse than starting something and failing was the regret of not trying something.” The company she started now employs seven people full time and leases 1,500 square feet of office space at the refurbished train station in downtown Binghamton. The Business Journal estimates that Idea Kraft generates about $1 million in annual revenue.
Holdrege, who is the company’s sole stockholder, launched her new venture as a full-service, creative studio specializing in branding, identity, packaging, and website design. “Idea Kraft is not a traditional agency,” she explains. “We are a niche agency, and that helps to differentiate us from the competition. My passion is creating brands that stand up in the marketplace, whether it’s for a startup or a company trying to reinvent itself. I’m not a trendy person; I want to create timeless brands … Idea Kraft’s approach is to inventory all of the ‘touch points’ a company has with its customers and then plan a campaign that will coordinate the branding effort. To accomplish this, we need to listen carefully to the client and understand the company and its goals.
“Our clients recognize the power of authentic branding and frequently retain us not just to create the branding campaign but also to monitor the brand on an ongoing basis,” Holdrege adds. “The business model may start with being paid to create the campaign, but it often leads to a retainer where Idea Kraft keeps a close watch on the company’s social media, search-engine optimization, updating of the website, and even its sales pitches and marketing collateral.”
The list of clients who have retained Idea Kraft to help them rebrand is long and diverse. E-Z Red, whose contract with Holdrege convinced her to launch her own company, is a leader in lighting, hand tools, and battery products, and also is a Caterpillar licensee of Cat Lights. The company is both a manufacturer and distributor. MMC is a global sales-optimization company that integrates the client’s assets with MMC’s platform, data, and staff. Motili offers a single point of contact for national products and accounts, as well as skilled contractors.
Idea Kraft’s customer list also includes the Pleasant Valley Wine Company, popularly known as the Great Western Winery; Progressive Dental; ICS, a technology provider; Link Park; the Greater Binghamton Chamber of Commerce; Scorpion Security Products; L2 Studio; and Central National–Gottesman, a global pulp, paper, and forest-products leader, to name just a few. While her client base is currently in Upstate, Holdrege also has customers in North Carolina and Denver.
Holdrege attributes much of her success to the time she spends organizing each branding campaign. “My first goal is to create a ‘design brief’ summarizing what we have learned from the client. It’s our road map outlining the objectives, the goals, and the challenges. It’s a picture of the complete landscape. We share this with the client to be sure we are on the right track. Next we convert the brief into a ‘mood board’ (sometimes called an inspiration board), which is a visual of all that we have learned. The mood board displays, among other things, color, photography, text, layout, and design concepts illustrating the broad direction we plan to follow. The purpose is to be sure, early in the process, that we understand what the client likes, and [thus] avoid having to make multiple revisions.”
Touch points
The company president then returns to her commitment to touch points. “In business jargon, a touch point is any encounter where a customer or potential customer and a business engage to exchange information, provide a service, or handle a transaction,” Holdrege observes. “It’s your brand’s points of customer contact, from start to finish. Identifying all of the touch points is a tedious task. Before a purchase, it can include activities such as social media, ratings and reviews, testimonials, word of mouth, and advertising. During a purchase it can be contact with company sales personnel, promotions, the phone system, a website that’s intuitive, signage, and point-of-sale displays. After the purchase, touch points include billing, marketing emails, the online help center, and service and support personnel.
“There are many ways for customers to experience your brand,” Holdrege continues. “The task can seem daunting. Once you know all of the touch points, you then need to make sure that each one leads to a good customer experience. It’s critical to monitor customer feedback to ensure their satisfaction. Never forget to look at the touch points through the eyes of the customers, not the company, and don’t lose sight of the big picture — the entire customer journey.”
For the past three years, Holdrege has been busy building her staff while growing the business. “I have spent a lot of time developing a creative team of writers, designers, photographers, graphic artists, and web developers,” she stresses. “Now I’m bringing videography in-house. Before hiring anyone, I typically work with them as freelancers to judge their talent and how well they will fit into the office atmosphere. I think the collaboration that goes on in this office is critical to our success, because each team member has to be able to work with the rest of the staff and interface with the clients. The office design is wide open to encourage collaboration and an innovative environment, and I promote creating a fun atmosphere which includes beer Fridays, food sharing, flex time, and Yoga lessons. It’s all about employee empowerment.”
Holdrege says that Idea Kraft is both profitable and debt-free. She identifies herself as a conservative business person, who prefers slow and steady growth. Yet, for the past three years, the company has grown at more than a 100 percent, annual-compounded rate, and her goal in the next two years is, at minimum, to triple the annual revenue. “I have spent a lot of time building a young team and investing in technology as the foundation for the business,” she avers. “My plan now is to bring in an experienced manager, so that I can devote more time to business development. We are also in a position to reach out geographically to service more clients.”
Part of Holdrege’s success is her networking skill. When starting the business, she wasn’t shy about asking agencies such as the Small Business Development Center in Binghamton and area entrepreneurial-assistance programs for help in developing a business plan. She has also networked with her peers as a member and past-president of the Communications Association of the Southern Tier and as a program-committee member of the upstate chapter of the American Institute of Graphic Artists. Holdrege is a judge of the Greater Binghamton Scholastic Challenge, which encourages high-school students to develop business ideas that impact the local community. As the mother of two young boys, she is also the president of the Parent-Teachers Organization in the Town of Windsor.
“I think as an artist I have to reinvent myself every day,” Holdrege concludes. “I am passionate about creating lasting brands for my clients; the inspiration comes from my heart. I keep seeking fresh perspectives, and I want to push the envelope as far as I can … This is a wonderful area to create a business and to enjoy a balance between work and home. I don’t see a limit to what Idea Kraft can become.”
Contact Poltenson at npoltenson@cnybj.com
PAR Technology unit wins federal contract award of nearly $14M
ROME — Rome Research Corp. will use a $13.8 million contract award to provide operations and maintenance support for the Washington, D.C.–based Broadcasting Board of Governors (BBG). Rome Research is a subsidiary of PAR Technology Corp. (NYSE: PAR) and part of PAR’s government business. Based in New Hartford, PAR Technology is a provider of restaurant/retail-management
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ROME — Rome Research Corp. will use a $13.8 million contract award to provide operations and maintenance support for the Washington, D.C.–based Broadcasting Board of Governors (BBG).
Rome Research is a subsidiary of PAR Technology Corp. (NYSE: PAR) and part of PAR’s government business. Based in New Hartford, PAR Technology is a provider of restaurant/retail-management technology systems and government-contract services.
Rome Research will provide the contract services for BBG at the Robert E. Kamosa Transmitting Station (REKTS) on Tinian and Saipan in the Commonwealth of the Northern Mariana Islands. The islands are located in the Pacific Ocean near Guam and to the east of the Philippines.
Under the five-year contract, the PAR subsidiary will transmit Voice of America, Radio Free Asia and other broadcasts, and maintain the REKTS equipment and facilities, PAR said in a news release.
The company is “extremely pleased” that BBG has selected Rome Research to continue these “important” telecommunication services, Matt Cicchinelli, president of PAR’s government business, said in the release.
“[Rome Research’s] success is only possible through the commitment and expertise of our dedicated employees and we look forward to our continued partnership providing BBG with the highest level of service and support,” said Cicchinelli.
The PAR Technology news release describes BBG as a “networked global media agency.” BBG, an independent agency of the federal government, includes five media networks with a shared mission “vital” to U.S. national interests. The networks, which include Voice of America and Radio Free Asia, work to “inform, engage and connect” people around the world in support of freedom and democracy.
Together, the BBG media organizations communicate each week with more than 226 million people across the globe, according to PAR
Contact The Business Journal News Network at news@cnybj.com

New York is investing $5 million to help create hub for upstate drone industry
New York will make an “initial” $5 million investment to help ongoing efforts to create a hub for unmanned-aerial system (UAS) “innovation” and manufacturing in upstate New York. The funding seeks to “support and grow the emerging” UAS industry in the upstate region, the office of Gov. Andrew Cuomo announced Aug. 2. Unmanned-aerial systems are
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New York will make an “initial” $5 million investment to help ongoing efforts to create a hub for unmanned-aerial system (UAS) “innovation” and manufacturing in upstate New York.
The funding seeks to “support and grow the emerging” UAS industry in the upstate region, the office of Gov. Andrew Cuomo announced Aug. 2.
Unmanned-aerial systems are also referred to as drones.
The hub will be “specifically supporting concepts originated by NASA,” Cuomo’s office said in a news release.
The concepts will include an “innovation” district dedicated to unmanned systems in a corridor between the cities of Syracuse and Rome, Cuomo’s office said. They’ll also include the planning and design of next-generation, unmanned-aerial, traffic-management infrastructure; and national UAS standardized testing and rating facilities.
“With the announcement of this significant investment, New York State is furthering its commitment to the efforts of focusing on this emerging field. We are determined to ensure that our state is well-positioned when it comes to the burgeoning unmanned-aircraft system industry,” Howard Zemsky, president, CEO, & commissioner of Empire State Development, said in Cuomo’s release.
The announcement follows Zemsky’s participation in a policy workshop on drones and the future of aviation that the White House Office of Science and Technology hosted Aug. 2.
The $5 million in funding launches New York’s commitment to growing the drone industry through the strategies outlined in the “Central NY Rising” plan.
Aerospace firms such as the DeWitt plant of Saab, the Salina location of Lockheed Martin Corp. (NYSE: LMT), and the Cicero–based SRC Inc., and regional organizations such as the NUAIR Alliance are supporting the effort, Cuomo’s office said.
The nonprofit NUAIR Alliance is short for Northeast UAS Airspace Integration Research Alliance.
NUAIR operates a Federal Aviation Administration (FAA)-designated drone test site at Griffiss International Airport in Rome.
Further details on the investment and hub project will be released at the 2016 UTM Convention, which is scheduled for Nov. 8-10 at various sites in the Syracuse area and at Griffiss International Airport in Rome.
The details will focus on “how these assets and strategies will be bolstered to bring beyond visual line of site capabilities to New York State,” according to Cuomo.
The convention will feature keynote briefings from NASA on “technical capability level demonstration 2, in which many collaborators will participate this October.”
The Air Traffic Controls Association, the Association for Unmanned Vehicle Systems International, Empire State Development, Onondaga County, Oneida County, CenterState CEO, the NUAIR Alliance, and Syracuse University are hosting the convention.
The future of UAS traffic-management standards, innovation, and technology is “poised to take root” in Central New York and the Mohawk Valley, Robert Simpson, president and CEO of CenterState CEO, said.
“This investment is among the first in the New York State’s multimillion dollar commitment through the CNY Rising plan to further develop this sector here. It’s validation that, with private-sector expertise, broad industry partnerships, and an FAA-designated test site, we have a leading role to play in the global development of the UAS industry,” said Simpson.
Simpson is also co-chair of the Central New York regional economic-development council.
The announcement also complements “Central NY Rising,” the region’s winning plan in Cuomo’s 2015 upstate economic-development contest that some media outlets dubbed, “Upstate Hunger Games.”
Contact Reinhardt at ereinhardt@cnybj.com

NYSTEC prospects for technology gold
ROME — In the California Gold Rush of 1848, mining technology initially included pans, picks, and shovels. Some prospectors quickly learned that gold extraction was quicker and more reliable with devices designed to drop the heavy metal through a sifting screen. It wasn’t long before the image of the lonely gold-panner crouching in a stream
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ROME — In the California Gold Rush of 1848, mining technology initially included pans, picks, and shovels. Some prospectors quickly learned that gold extraction was quicker and more reliable with devices designed to drop the heavy metal through a sifting screen. It wasn’t long before the image of the lonely gold-panner crouching in a stream gave way to miners working in deep, hard-rock mines using the technology of hydraulic hoses to increase the yield.
The New York State Technology Enterprise Corporation (NYSTEC) is also panning for gold. Its success, however, is not measured in nuggets, but rather in technology research and application and in client satisfaction. NYSTEC — a 501(c)(3) not-for-profit corporation founded by New York State in the same year Griffiss Air Force Base closed its Rome operation — was created to leverage the technologies, methodologies, and expertise of the Rome Laboratory, renamed the Air Force Research Laboratory, (AFRL).
“The new corporation was funded by a six-year, $6 million, state grant to benefit the state’s businesses, institutions, and government entities by assisting with planning, procuring, and integrating new technologies and systems,” says Mike Walsh, NYSTEC’s president and CEO. “The state then enacted legislation to make it easy for the state and New York City agencies to contract with NYSTEC. We became fully independent in 2001 when the state discontinued all supplementary funding to the company.”
Today, all of NYSTEC revenues are derived from client contracts.
“Keeping pace with technological change is the biggest challenge most organizations have today,” posits Walsh. “Ray Kurzweil, the inventor and futurist, feels humanity will see the equivalent of 20,000 years of progress over the next 100 years. Few organizations can rely solely on their employees to stay abreast of technology trends and identify the best and most cost-effective solutions to their problems. Our model promotes collaborative innovation between our clients and NYSTEC’s engineers, project managers, and technology specialists. The goal is simple: Exceed client expectations.”
NYSTEC, which started 20 years ago with three employees, now boasts a staff of 150. Of those, more than 70 percent are consultants who are degreed and/or certified. The nonprofit company leases more than 16,000 square feet in Rome, Albany, and New York City. Michele Salisbury, NYSTEC’s CFO and Central New York economic development & outreach director, “… estimates 2016 revenues approaching $20 million.”
Walsh, who has been NYSTEC’s leader since 2013 and with the organization since 2003, started his career at KPMG Consulting where he served for 18 years, the last six as a principal.
“When I joined [NYSTEC], it already had a strong corporate reputation,” opines Walsh. “Our clients appreciate our not-for-profit status, which lets us invest for the long-term and not just the next quarter’s profit. We are also vendor-neutral, which helps to separate ourselves from many IT consulting firms. Our close working relationship with AFRL is another critical asset that sets us apart from the competition. Finally, NYSTEC works with organizations placing special emphasis on the human side of technology utilization. Just because something looks good on a spread sheet is no guarantee that it will be implemented effectively.”
Of all NYSTEC’s competitive advantages, Walsh cites the highly skilled staff for the company’s continuing growth. “The leadership team is exceptional,” avers the company CEO. “Michele Salisbury is our CFO, Jana Behe is the director of contracts and our general counsel, Nick Alger is the director of service delivery, and Mark Romano heads up our business development. The staff includes 125-130 professionals, whom we encourage to continue their professional development by our underwriting continuing education. The work is both meaningful and challenging, which helps our consultant/partners to understand and focus on client business.”
NYSTEC consults in a variety of practice areas: technology-acquisition support, information-technology strategy, communications, information security, network planning and design, health-care IT, and education IT. The company’s clients over the years have included multiple state agencies, such as the Departments of Corrections, Health, Labor, Transportation, and Taxation; five New York City and metro area agencies plus the City University of New York; and several county governments, including Albany, Monroe, Nassau, Saratoga, Schenectady, Schoharie, and Tompkins.
NYSTEC also supports institutional clients, such as the Development Authority of the North Country, New York Power Authority, and the New York State Energy Research and Development Authority.
While company projects are generally not released for publication, Behe shared NYSTEC’s collaboration with the New York State Department of Health (NYSDOH) at the recent New York ITS-sponsored Cyber Security Conference to discuss Medicaid-modernization efforts.
“The use of big data, such as Medicaid-claims data, is at the core of NYSDOH’s efforts to reduce costs,” notes Behe. “We are helping them with innovative solutions to make better and faster decisions that not only reduce costs but also improve their claims adjudication and fiscal management, as well as deter fraud and abuse. Our consulting also includes recommendations to support the development of a more secure data system to mitigate the problem of data breaches.”
Walsh and his plan
Walsh describes his business plan as a three-legged stool focusing on clients, employees, and business performance. One might suggest a fourth leg — his focus on community. NYSTEC is supportive of multiple programs including the Commercialization Academy and a summer, start-up accelerator program called IgniteU NY. The company also supports area technology programs such as Project Fibonacci, Semi High-Tech U, and P-TECH. The goal is to promote an interest in science and technology and to bring together regional entrepreneurs to show how much the area has to offer.
Walsh earned his bachelor’s degree in business administration and his master’s degree in applied mathematics from the University of Miami. From 1983 until 2001, he worked at KPMG, leading the state and local government practices in Albany, Boston, and New York City before becoming the partner-in-charge for KPMG’s state and local government consulting practices for New York and New England. From 2001-2003, he was managing director of BearingPoint, responsible for the higher education practice in New England, New York, and the Mid-Atlantic states. BearingPoint is a multi-national management and technology firm headquartered in Amsterdam with 3,500 employees operating in 20 countries. Walsh joined NYSTEC in September 2003 and resides in the Albany area.
For the past 11 years, Salisbury has served as NYSTEC’s CFO and economic development and outreach director. She also leads the innovation initiatives, which includes working with AFRL and other technology entities to support technology transfer. Prior to joining NYSTEC, Salisbury was the controller for ARISE in Syracuse. She earned her bachelor’s degree in accountancy from SUNY Polytechnic Institute and her MBA from Syracuse University. Salisbury is a licensed CPA in New York State and resides in the Rome area.
Behe received her bachelor’s degree from the University of Rochester and her law degree from the University of Pittsburgh School of Law. She is admitted to practice in New York and Pennsylvania and joined NYSTEC in 2003. Her primary focus is on risk-management, compliance, contracts, and governance. Behe is a native of Little Falls.
NYSTEC plans to continue panning for technology gold by sharing its nuggets of wisdom accumulated over the past 20 years. The company’s collaborative prospecting model will include a greater emphasis on developing clients in the private sector eager to keep pace with technological change.
Contact Poltenson at npoltenson@cnybj.com

Startup firm Bojaga Studios’ farmstand location app is almost ready for iPhone
SYRACUSE — Bojaga Studios, a startup company that is a virtual tenant at the Syracuse Technology Garden, has a mobile-phone application (app) that will soon be available for iPhones. The app, called Farmstand Finder, is already available for Android devices, says Alexander (Alex) Jones, the fledgling firm’s chief information officer. It’ll be available for the
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SYRACUSE — Bojaga Studios, a startup company that is a virtual tenant at the Syracuse Technology Garden, has a mobile-phone application (app) that will soon be available for iPhones.
The app, called Farmstand Finder, is already available for Android devices, says Alexander (Alex) Jones, the fledgling firm’s chief information officer.
It’ll be available for the iPhone “within a month,” says Andrew Hockenbery, the company’s CFO, who focuses on administration and consulting.
Both Jones and Hockenbery spoke to CNYBJ on Aug. 8.
“We are trying to reach out to people who run events for farmers, for farm- stands,” Hockenbery says in explaining the firm’s target markets. “We’re really not focused on farmers’ markets because they’re already a niche with websites and some apps for farmers’ markets. We’re really trying to [focus on] the roadside stands, the farmers who sell out of their barn.”
Besides Alex Jones and Andrew Hockenbery, Bojaga Studios includes Justin Jones, who serves as co-CEO and lead programmer; Geoffrey Jones, chief technology officer for design and programming; and Adam Hockenbery, co-CEO working on concept design and business analysis.
All five men have equal ownership in the company, says Alex Jones.
Besides their work on Bojaga Studios, each owner also works a separate full-time job, says Jones.
“I definitely do this on the side,” he adds.
Idea for app
Jones got the idea for the app while driving to a sales appointment in Norwich for his regular full-time job and noticed several farmstands along the side of the road.
“I’m thinking to myself … how is anyone going to know about this [farm stand],” says Jones.
He discussed his idea for an app with his Bojaga colleagues and pursued input from Cornell University and the U.S. Department of Agriculture.
“They gave me their feedback as far as what an app should do for farmers,” says Alex Jones.
When a customer visits and likes a farm stand, the person can upload the information to the app, so other customers can find it.
The app currently includes information on 2,000 farms nationwide, including “hundreds” of Central New York farms, says Jones. The USDA provided Bojaga its full farm-network information for the app, he added.
Bojaga has published the Farmstand Finder app for Android phones, while the app for the iPhone is coming out “very soon.”
The firm has two other apps it is working on for clients, but couldn’t discuss details, citing “confidentiality,” says Hockenbery.
The company is also working on its own app. “It would be a game that we would develop,” he says.
The firm has about a half dozen apps that it is working on, says Jones.
At the same time, Bojaga Studios is also working to raise capital, as it would like to hire another full-time programmer. A programmer makes between $100 and $250 per hour, according to Hockenbery.
The company principals are working with the Tech Garden to make sure they’re prepared if they ever make a pitch to a venture capitalist or a lending institution, says Jones.
Jones figures the process will take about “a month-and-a-half to two months” before the firm’s ready to seek that funding.
Bojaga has been a virtual tenant with the Tech Garden since May.
About Bojaga Studios
Alex Jones started the company as Syracuse Unlimited Resources, LLC in April 2011. He wanted to create an e-commerce or online store, using items purchased through Wynit, a local distributor.
He eventually realized that competing against larger companies, such as Amazon, would be a challenge, considering the amount of money it would take to market the website.
“So we … put the company on hold,” says Jones.
The group decided to begin developing apps because Justin Jones, Alex’s brother, is a programmer.
“He would go home at night and start programming apps,” says Alex Jones.
Justin Jones, Geoffrey Jones, and Adam Hockenbery also started writing apps for games on their own time. Andrew Hockenbery, Adam’s brother, also had ideas for apps and became involved.
Earlier this year, Alex Jones decided to have the group join the ownership of Syracuse Unlimited Resources, LLC and conduct business as Bojaga Studios.
The word “Bojaga” is made up of the first letters in “buyers oasis,” and the first letters of the principals involved.
The company thought about using “buyers oasis” as the d/b/a name for the startup, but decided against it, says Alex Jones.
The firm’s website lists an address of 5701 E. Circle Drive in Cicero, which is a mailbox address, according to Alex Jones and Andrew Hockenbery.
The company’s office is “virtual,” says Jones.
If the principals need to meet with each other or a potential client, they’ll either meet at one of the owners’ homes or at the Tech Garden, says Hockenbery.
Contact Reinhardt at ereinhardt@cnybj.com
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