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People news: Syracuse Crunch sign Vance Lederman to 22-year contract extension
SYRACUSE, N.Y. — The Syracuse Crunch have signed Vance Lederman to a 22-year contract extension, Howard Dolgon, the minor-league hockey team’s owner, announced in a

Syracuse University to raise tuition 4 percent to more than $43,000
SYRACUSE, N.Y. — Full-time undergraduates will pay more than $43,000 in tuition to attend Syracuse University in the 2016-17 academic year. That’s an increase of

Syracuse Chiefs unveil new uniforms, promotions schedule
SYRACUSE — The Syracuse Chiefs will wear new uniforms during the 2016 baseball season. The minor-league pro baseball team will also offer many of the same promotions to which fans have become accustomed in recent seasons. Both announcements were part of the team’s open house held March 5 at NBT Bank Stadium. “We are switching
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SYRACUSE — The Syracuse Chiefs will wear new uniforms during the 2016 baseball season.
The minor-league pro baseball team will also offer many of the same promotions to which fans have become accustomed in recent seasons.
Both announcements were part of the team’s open house held March 5 at NBT Bank Stadium.
“We are switching to red, white, and blue [colored uniforms], which is a traditional color of the Syracuse Chiefs,” Jason Smorol, general manager of the Syracuse Chiefs, said in his remarks during the informal announcement during the event.
A group of area teenagers modeled examples of the uniform for home games and road games, the alternative uniform with the calligraphy “S” that the team first used in 1964, and the batting-practice uniform.
The Chiefs will open the season hosting Lehigh Valley on April 7 at 2:05 p.m. at NBT Bank Stadium.
Smorol used the open-house event to announce the team’s opening-day guarantee.
“If it is not 53 degrees, everybody that buys a ticket for that game and comes to opening day will get a free ticket for any other game in April or May,” said Smorol.
He also noted the Chiefs will use their time and temperature clock for the official temperature for the guarantee.
The open house also represented the first chance for fans to buy individual game tickets for opening day and the team’s other 71 home games.
Promotions
Besides the opening-day temperature guarantee, the Chiefs also used the event to release their promotions schedule for the 2016 season.
Smorol noted the organization can’t control the weather or the team’s on-field play, but it can control its customer service, including the greeting at the parking lot, the ticket window, fan amenities, and promotions.
“Those are things that are within our control and we have been ramping those up dramatically in the past couple seasons and this year is no different,” said Smorol.
The returning $1.00 Thursday, Fireworks Friday, and Super Saturday promotions highlight this year’s schedule.
“Dollar Thursday is still the greatest deal in the history of baseball,” said Smorol.
This year’s schedule calls for 12 Dollar Thursdays, beginning with the season opener on April 7, according to the team’s news release issued the same day as the open house.
Fans can get hot dogs and soda for $1, along with alcoholic beverages for $2 during every Thursday home game.
The Chiefs will also have a magnet-schedule giveaway on opening day as well.
The team on April 8 will acknowledge the 100th birthday of Don Waful, who served as team president for 35 years.
As the season unfolds, the schedule also includes “Fireworks Fridays,” and “Super Saturdays,” which are “full of giveaways,” and together comprise the “bulk” of this year’s 18 postgame fireworks show, the team said.
An extra fireworks show will take place postgame on Sunday, July 3, as part of an Independence Day weekend celebration.
Every Saturday is a “Super Saturday” that either involves fireworks or a giveaway, such as adult jerseys on May 20 and June 18; full size bats on Reopening Day on June 25; and Bryce Harper bobble head on Onondaga County Volunteer Fire Association night, which is scheduled for July 16.
Bryce Harper plays right field for the Washington Nationals, the major-league parent club of the Triple-A Syracuse Chiefs.
The Chiefs will do the “best that we can do” to give the best dollar value, said Smorol.
“They need to come here and say that was a great time, that was worth my five dollars, or my 10 dollars, or my 12 dollars, or if you buy a ton of stuff, 100 dollars,” said Smorol, which was greeted with light laughter from the assembled crowd in the Hank Sauer Room of Legends.
The full promotional schedule is available at the team’s website (syracusechiefs.com).

The chickens have come home to roost. — Robert Southey GREENE — Southey’s idiom appeared in 1810 on the title page of his poem “The Curse of Kehama.” His meaning was that curses are like chickens; they always come home to roost. Translation: your bad deeds always catch up with you. Don’t tell that to Andrea
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The chickens have come home to roost. — Robert Southey
GREENE — Southey’s idiom appeared in 1810 on the title page of his poem “The Curse of Kehama.” His meaning was that curses are like chickens; they always come home to roost. Translation: your bad deeds always catch up with you. Don’t tell that to Andrea and Don Cascun (kas-KOON): their chickens are a blessing.
“Don came home one day with 100 chicks,” says Andrea Cascun, co-owner with her husband Don of Cascun Farm, Inc. “His idea was to raise the chicks and process the chickens for sale. The purpose was to help pay the taxes on the 125-acre farm owned by Don’s parents and to fund the farming lifestyle we both loved. Our sales in the first year of business (2012) were $50,000. The next year our sales grew 777 percent and then doubled in 2014 and again in 2015.”
Both Cascuns had grandparents, great-grandparents, and great-great grandparents who operated dairy farms. “Farming is in our blood,” Andrea Cascun continues. “We are also committed to natural food which involves minimal processing, contains no artificial additives, no growth hormones or anti-biotics, natural feed (no animal bi-products), free-range for the animals, and humane slaughtering. To us, natural food is locally sourced to guarantee freshness. Don’s 100 chicks soon grew to 5,000 chickens, and our … [enterprise] expanded to include raising turkeys, goats, rabbits, and lambs. To handle the [explosive] growth, we built a processing facility in a barn on the farm. Cascun Farm also sourced beef, pork, and even quail and squab from regional farmers to complement their own products. In April 2013, we created a d/b/a and opened The Butcher Block and Farm Market. It served as an outlet for our poultry and meats. Last year, we set up a second corporation called The Butcher, the Baker, and the Sandwich Maker, Inc. and rebranded the business. In December, we reopened as a deli/bakery/butcher shop, located on the main street in Greene.”
OJT Training
The Cascuns learned to raise poultry through on-the-job-training. “In the beginning, it was all trial and error,” reflects Cascun. “The process sounds easy: buy the chicks, feed them for eight weeks, harvest and package them, and sell the product. We set up brooder boxes to keep the chicks warm and kept the water, starter-feed, and bedding clean. Every evening, the family would round up the wandering chickens and drive them into hoop houses. We learned to cover the openings with wire to prevent predators, especially the neighborhood owls, from enjoying … [our bounty]. We also learned that nature has a way of interfering with the best plans. One day, a sudden storm came up and drenched our brood before we could get them to shelter. That night we lost 750 to pneumonia.”
The two-person start-up company now employs 17 people: five on the farm and 10 at the deli/café store plus Don and Andrea. In 2015, the couple processed more than 50,000 pounds of meat and poultry, including some animals from area farmers. They have successfully parlayed the original $50,000 in sales to an estimated $1.5 million-plus (consolidated figures) in 2015 (CNYBJ estimate).
National trends
The Cascuns are riding a national wave of consumer demand for natural and locally produced food. According to a 2014 Consumer Reports study, 66 percent of consumers are checking to see whether their food is locally produced, and 59 percent want to know whether it’s natural. Seventy-five percent of consumers also expect that their meat and poultry will be raised humanely. A 2014 study by the Food Marketing Institute (FMI) identified several macro trends in eating and shopping, including consumers’ higher expectations from their food and the companies providing it, a decrease in loyalty to just one food vendor, and a greater involvement by the consumer in the foods they purchase. FMI also noted the growth of consumer attitudes in support of wellness and a marked trend to divide retail spending among grocers in different categories. The study highlighted changes in consumer eating habits to reflect a move away from planned eating to a more spontaneous, same-day consumption. Finally, the study showed that food retailers are best positioned to leverage consumer trust around health and wellness.
“To be successful as a business, we recognized the need to find buyers who appreciated the quality of our products and who would pay a premium price,” says Andrea Cascun. “At first, Don’s dad, who had a business in New York City, went directly to certain buyers there. Our breakthrough came when we contacted FarmersWeb, an online business that puts farms, food hubs, and local artisans in touch with wholesale buyers, such as restaurants, schools, caterers, country clubs, hotels, corporate kitchens, retail stores, and more. FarmersWeb also acts as a sales agent by accepting online orders and as an administrator that creates packing slips, processes and tracks orders, issues invoices, and processes payments. The buyers benefit from immediate access to local products, and the sellers can identify the current demand in real time for their products among a number of buyers. FarmersWeb is free for buyers, and the producers pay a fee depending on the level of services chosen.”
While FarmersWeb has proven an invaluable marketing tool for the Cascuns, they find no substitute for building personal relations. “This is a business based on trust,” intones Cascun. “We don’t rely on distributors to sell our products; we want to know exactly what a chef or buyer wants and we want to control the process to ensure quality, packaging, and timely delivery. Don is in New York City every week meeting with our established … [clientele] and introducing Cascun Farm to new buyers. We currently deliver three times a week to the city and bring back fresh bagels, pastries, cakes, rolls, and lox from Brooklyn suppliers for our café. For us to compete against the many, large meat purveyors, we have to be sure we have the products our customers want when they want them. We accept special orders that may be small or need special cutting and packaging. You want French-cut chicken breasts, blends of ground beef, prepared chicken stock? We can do that … You have to be right with every order; considering the competition, you usually don’t get a second chance. If it means busting your rear-end and staying up until 2 a.m. to complete an order or delivering on a holiday, that’s what we do. We don’t say no. This is a long-term proposition for us: we plan to grow with our customers.”
Future growth plans
The Cascuns are on track to sustain their hyper-growth. “Interest in specialty poultry production is growing in the U.S., but there are few processing facilities that provide poultry-processing services to independent producers,” notes Cascun. “Our focus now is to widen our distribution by obtaining certification to cut and process meats to ship across state lines and to cut and package red meat for wholesale. This requires a processing plant with at least 7,500 square feet, which we hope to find by late spring or early summer. We project in phase-one of the operation to hire 10 people and an additional 15 people in phase-two. Then our geographic markets will reach not just to New York City but also to Philadelphia, Chicago, Boston, and the Greater New York metro area outside the state. We know the demand is there because many of our current customers who have operations in those markets have asked us to expand.”
Finding a processing plant is just one project on the Cascuns’ to-do list. “The reception of our deli/bakery/butcher shop has been tremendous,” opines Cascun. “Our customers love the concept of combining a farm, butcher shop, deli, and café where they get fresh, natural meats cut to their particular request. The bagels, which are hand-rolled, kettle-boiled, baked fresh every morning in our bakery, and contain only natural ingredients, are the best bagels I have ever tasted … Our deli/cafe is currently open for breakfast and lunch, and we are extending the hours to include dinner. If you like options such as soups made from scratch, hand-cut fries, burgers fresh from our butcher shop, our special herbed mayonnaise, and Don’s house-made brisket braised in wine, The Butcher, the Baker, and the Sandwich Maker should be your destination. Because of our success with the model in Greene, we plan to open another outlet in Ithaca, where the customers truly appreciate natural foods and the city has asked us to come.”
The Cascuns have also generated a catering business, which has the potential to expand, and they dream of opening a charcuterie to age and dry-cure sausage, ham, patés, and other cooked meats. Currently, Cascun Farm acts as a distributor for small, local farmers selling their honey, maple syrup, and cheeses. Growth plans also call for creating a food hub to bring the area’s small farmers together with buyers. Most of all, Don and Andrea want to own their own farm. “Don is the dreamer in the family, and I am the realist,” explains Andrea. “We have to be careful that our growth is not so fast that we can’t control it. That’s why the processing plant is receiving all of our attention now: Without the certification and the right facility we can’t move ahead.”
One of the Cascuns biggest roadblocks to expanding is the lack of skilled labor in the area. “Ours is a fluctuating market depending on the season,” laments Cascun. “Our goal is to maintain our employment year-round, and we pay well to attract good employees. Working in our deli/bakery/butcher shop is not a glamorous job, but it is demanding because there is little room for error. We need to find people who are willing to work, pay attention to detail, and are eager to learn. We spend a lot of time recruiting the right people and teaching them how to do the job.” The Cascuns have also been supported in their growth by professional service-providers including Citizens Bank for financial needs, Levene, Gouldin & Thompson for legal matters, and Vieira & Associates for accounting.
Andrea Cascun grew up in Pine Bush, a hamlet in Orange County. Don Cascun was born in the Republic of Malta, and moved with his family at the age of five to Astoria, Queens. The two met in Orange County, where they were attending college. Andrea studied graphic design, communications, and advertising/marketing. Following graduation, she worked at a local Ethan Allen furniture store doing in-home design. The couple moved to Chenango County a decade ago, where Andrea opened a dog-grooming business in 2006 and Don studied to be a nurse. The couple has three children ages 12, 10, and five.
Nothing seems to daunt the Cascuns. Despite all the regulatory oversight in the food business, the challenge of finding employees, fierce competition, the pressure to find investment capital, and demanding customers, they are forging ahead with their plans to grow the business at an exponential rate.

St. Joseph’s, Rome Memorial begin work on implementing affiliation agreement
ROME — How can St. Joseph’s Health help Rome Memorial Hospital (RMH) in providing medical services in the Mohawk Valley? Officials from both organizations will work on those details after their March 22 announcement of an affiliation agreement that RMH hopes will “expand access to care.” The organizations are calling it “a collaborative relationship in
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ROME — How can St. Joseph’s Health help Rome Memorial Hospital (RMH) in providing medical services in the Mohawk Valley?
Officials from both organizations will work on those details after their March 22 announcement of an affiliation agreement that RMH hopes will “expand access to care.”
The organizations are calling it “a collaborative relationship in pursuit of mutual goals to expand patient access to needed services and technology in the community,” according to a joint news release issued the same day.
RMH and St. Joseph’s over the next several months will also work to obtain the necessary regulatory approvals involved with their agreement.
The Rome facility will continue to operate as an “independent, separately licensed” hospital with community representatives providing “strong local governance,” according to the release.
About the agreement
The affiliation agreement doesn’t involve a financial transaction, according to David Lundquist, CEO of Rome Memorial Hospital
“It’s not a merger or an acquisition,” says Lundquist, who spoke with CNYBJ on March 22.
The agreement involves two steps. The first is called the transition service agreement (TSA), which is a “written commitment by both parties to spend some quality time together … in defining what the affiliation will actually look like and operate like,” he added.
The timeline on defining how the affiliation will benefit both hospitals “has yet to be determined,” he notes.
RMH has had discussions with potential affiliation partners for about five years, including its discussion with Bassett Medical Center in Cooperstown. RMH suspended its discussions with Bassett in October 2014.
St. Joseph’s Health will provide additional resources, including medical-staff residencies.
It has a nursing program, which could benefit RMH so it could “recruit and retain” nurses and physicians and provide education and training for the RMH staff, says Lundquist.
The Rome facility could also benefit from purchasing contracts in an affiliation with St. Joseph’s, he noted.
RMH could work with St. Joseph’s to establish a system of pre-care and post-care for patients needing open-heart surgery, according to Lundquist.
“So, I think it’s a good match,” he adds.
Lundquist began his duties as RMH CEO on March 1, following Darlene Burns, who had been serving as interim president and CEO following the resignation of Basil Ariglio last August.
“Following a comprehensive evaluation, the board has selected St. Joseph’s Health, a health-care system that shares our commitment to providing patients with high-quality, coordinated care that is easily accessible,” Dr. Chester Patrick, chairman of the RMH board of trustees, said in the March 22 release. “The signing of the transition service agreement provides the framework for RMH to become affiliated with St. Joseph’s Health as we work together to deliver the highest level of quality healthcare services to meet the needs of our patients.”
St. Joseph’s role
The affiliation agreement between St. Joseph’s Health and RMH “is really a collaboration,” says Kathryn Ruscitto, president and CEO of St. Joseph’s Health.
“We’re building a regional network of partners who will really begin to look at how to improve health and home communities,” she added in a phone interview with CNYBJ on March 22.
Ruscitto says St. Joseph’s Health has been working to expand primary-care access throughout Central New York. The organization is also working with regional partners, such as RMH, “to determine what they need in their communities.”
It’s not the first time St. Joseph’s has reached an affiliation agreement with a smaller, regional hospital. Lewis County General Hospital (LCGH) in Lowville in March 2014 announced plans to affiliate with St. Joseph’s Hospital Health Center.
St. Joseph’s Health is taking its “expertise” and helping another institution work on “what’s important for its community,” says Ruscitto.
For example, St. Joseph’s has helped LCGH work on telepsychiatry and is also discussing patient access to primary care in the region. St. Joseph’s can also offer its College of Nursing for educating students in rural areas to help provide services in those areas, she notes.
“Now we have to sit down with Rome [Memorial Hospital]… and begin the work of figuring out what we can do best support them,” says Ruscitto.
The two organizations could have an update on their relationship “sometime later this year,” she adds.
Bonadio Group’s 2015 hiring spree began with Syracuse acquisition
The Rochester–based Bonadio Group’s acquisition of Syracuse accounting firm Testone, Marshall & Discenza (TMD), which took effect Jan. 1, 2015, started what Bonadio says was a “record” year of hiring. The Bonadio Group added 183 new employees in 2015, including 52 recent college graduates. The TMD acquisition resulted in 79 of the 131 experienced employees
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The Rochester–based Bonadio Group’s acquisition of Syracuse accounting firm Testone, Marshall & Discenza (TMD), which took effect Jan. 1, 2015, started what Bonadio says was a “record” year of hiring.
The Bonadio Group added 183 new employees in 2015, including 52 recent college graduates.
The TMD acquisition resulted in 79 of the 131 experienced employees who joined the Bonadio firm, the company said in a Feb. 8 news release.
The Bonadio Group added experienced candidates to all of its offices, and recent college graduates to each of the locations, except for Utica.
“We’re giving them the opportunity to stay near their home,” Thomas Bonadio, CEO and managing partner of the Bonadio Group, says of the recent college graduate hires. He spoke with CNYBJ on March 18.
The Bonadio Group describes itself as the “largest independent provider of audit, tax, and management advisory services in upstate New York.”
The firm had 753 total employees as of March 18, a figure that includes temporary and seasonal employees because of the upcoming tax deadline in mid-April.
In Central New York, Bonadio Group’s Syracuse office has close to 135 people, while the firm employs between 15 and 20 people total at its offices in Utica and Geneva. The Bonadio Group also has offices in Albany, Batavia, Buffalo, East Aurora, New York City, and Rutland, Vermont.
Besides the recent college graduates and employees hired through the TMD merger, about 50 new hires replaced other Bonadio Group employees who left the firm.
“They go on to other cities. Some of them left and went to Southern locations and a lot of them over a period of time leave our industry and go to other industries, so that’s pretty normal to have turnover in an accounting firm and you have to replace that,” says Bonadio.
The firm didn’t initiate any layoffs in 2015, so all the departures were voluntary. Some employees join the firm to get experience to become certified public accountants (CPAs) and then determine that “public accounting is not where they want to be long term,” he notes.
“Almost all” of the new hires are candidates to become CPAs, Bonadio says.
The Bonadio Group has training programs “for every level of the firm.” The firm’s experienced hires are “typically experts” in a given area, such as taxes or health care.
“The experienced people are the hardest to find because there just aren’t that many of them that are in upstate New York or want to come to upstate New York,” Bonadio says.
Revenue growth
Besides the employee growth, the Bonadio Group also reported a 21.5 percent increase in projected revenue last fiscal year when compared to fiscal-year 2014.
Tom Bonadio says the figure included “about 8 percent organic growth and the rest was through mergers.”
The firm projects it will generate revenue of $102.3 million for fiscal year 2016, which ends on April 30 of this year.
The company’s fiscal year stretches from May 1 through April 30, he notes.
The Bonadio Group has outlined a three-year “strategic” plan to grow another 35 percent. The firm wants to expand its total employee count beyond 1,000 and generate annual revenue between $130 million and $140 million, says Bonadio.
“And that will include, we anticipate, a number of mergers and it will include organic growth,” he says.
The growth plan covers the fiscal years that end on April 30 of 2017, 2018, and 2019, he notes.
The firm’s revenue growth in its fiscal year 2015 helped it rise two spots to number 38 on the 2016 list of Top 100 accounting firms in the publication Accounting Today.
Accounting Today, a bi-weekly magazine for the accounting industry, uses revenue generation to determine its annual ranking of the largest U.S. accounting firms.
The publication first listed Bonadio on its Top 100 list in 2007. Since then, the firm says it has generated revenue growth for nine consecutive years.
How Safe is Your Employees’ Personal Information?
Employers must take immediate action The IRS issued an alert on March 1 to payroll and HR professionals about new phishing scheme involving W-2 information. Employers need to take immediate steps to confirm the security of their employees’ personal information. The alert describes a scheme that has already claimed several victims. Payroll and human-resources officers have
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Employers must take immediate action
The IRS issued an alert on March 1 to payroll and HR professionals about new phishing scheme involving W-2 information. Employers need to take immediate steps to confirm the security of their employees’ personal information.
The alert describes a scheme that has already claimed several victims. Payroll and human-resources officers have mistakenly emailed payroll data including W-2 forms that contain Social Security numbers and other personally identifiable information to cyber criminals who posed as company executives.
“This is a new twist on an old scheme using the cover of the tax season and W-2 filings to try tricking people into sharing personal data. Now the criminals are focusing their schemes on company payroll departments,” IRS Commissioner John Koskinen said. “If your CEO appears to be emailing you for a list of company employees, check it out before you respond. Everyone has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees.”
The fraudulent email contains the name of the company CEO and requests a list of employees and information including Social Security numbers from a company payroll employee or outside HR service.
The IRS alert identified the following details included in these emails:
Criminals use this information to file fraudulent tax returns for refunds or otherwise monetize the stolen data.
We recommend that every employer take immediate action to address this phishing variation known as “spoofing.” Employers should contact their outside human-resources professional to determine that security protocols are in place to avoid this cybercrime. In-house, you should conduct a review of data-protection policies, procedures, and technologies. Carnegie Mellon University’s list of best practices for mitigating cybercrime is a helpful resource. See http://www.cert.org/insider-threat/best-practices/index.cfm.
This review should be team-based including management, HR, IT, and legal counsel. Heightened awareness of everyone in the organization may be the first and best protection.
Elizabeth A. Hartnett, Esq., CPA, is a partner at the Syracuse law firm, Mackenzie Hughes LLP. Her areas of expertise include family business entities, business tax and succession planning, pre-nuptial and post-nuptial agreements, fiduciary compliance, investment counsel, estate planning, fiduciary services and estate settlement. This viewpoint is drawn from the law firm’s Plain Talk blog.
Chemung Financial appoints CPA firm partner to board of directors
ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG) announced that it has appointed Kevin B. Tully, of Saratoga Springs, to the boards of directors of Chemung Financial and its main subsidiary Chemung Canal Trust Company. Tully is a licensed certified public accountant (or CPA) and a partner in the firm of Teal, Becker & Chiaramonte, a
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ELMIRA — Chemung Financial Corp. (NASDAQ: CHMG) announced that it has appointed Kevin B. Tully, of Saratoga Springs, to the boards of directors of Chemung Financial and its main subsidiary Chemung Canal Trust Company.
Tully is a licensed certified public accountant (or CPA) and a partner in the firm of Teal, Becker & Chiaramonte, a regional accounting firm headquartered in Albany. He joined the firm in 1982 and specializes in the areas of tax, finance, and accounting for small and mid-sized businesses.
Tully earned an MBA from the University at Albany and bachelor’s degree in business administration from Siena College.
Chemung Canal Trust, headquartered in Elmira along with its parent company, says it’s the oldest locally-owned and managed community bank in New York state.
Schneiderman alerts consumers about phony government collection scams
New York Attorney General Eric Schneiderman recently issued a consumer alert about “imposter” phone scams. The callers pose as representatives from the attorney general’s office, IRS, or as court officers, according to a news release from Schneiderman’s office. The scammers commonly target senior citizens, students, and first-generation Americans. Consumers should not respond to these calls or
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New York Attorney General Eric Schneiderman recently issued a consumer alert about “imposter” phone scams.
The callers pose as representatives from the attorney general’s office, IRS, or as court officers, according to a news release from Schneiderman’s office.
The scammers commonly target senior citizens, students, and first-generation Americans. Consumers should not respond to these calls or letters, and should not give the callers their Social Security number, bank account information, or other sensitive personal identifying information, according to the release.
The phony attorney general’s office calls often come from the phone number (347) 809-6947 or a phone number with a 646 area code. In the calls and voicemails, consumers are told that money is owed and the issue must be resolved immediately. Some consumers received phony debt-collection notices through email with a PDF attachment purporting to show the “New York State Attorney General” letterhead, according to the release.
The letters threaten criminal action and arrest if the debts are not paid. Legitimate letters identify the debt collection agency, the amount of the debt, the name of the original creditor, and provide a consumer with an opportunity to dispute the debt, according to the release.
Phony jury-duty callers typically identify themselves as court officers, claiming the that consumers will face a fine for failing to show up for jury duty, according to the attorney general’s office. They threaten consumers that unless an immediate credit-card payment is made including personal information, the police will arrest them at their house. Consumers should contact their local county clerk if they think they missed a jury-duty summons.
Phony IRS callers claim to be agents or police officers collecting a tax balance that is owed. The callers tell consumers that unless the debt is paid immediately, police officers will arrest them at their house or that a warrant has been issued for their arrest. Consumers may also be threatened with deportation, driver’s-license revocation, or receive several “urgent” messages that become increasingly threatening or insulting, according to the attorney general.
The callers may use caller ID spoofing to display “Internal Revenue Service” on a caller ID box or the IRS phone number, according to the release. They may request that the “IRS Tax Warrant” be paid with a Green Dot Card Money Card, PayPal Prepaid MasterCard, or Western Union MoneyGram.
Legitimate government organizations will not threaten arrest or deportation for failure to pay a debt or insist that consumers pay a debt only with a pre-paid credit card, according to the release.
Consumers are encouraged to file complaints by visiting www.ag.ny.gov or calling (800) 771-7755.
Using Tax-Exempt Financing to Help Attract Foreign-Direct Investment
If you are a manufacturer, bank, or economic-development organization (EDO), you need to know about Section 144 of the IRS Tax code: https://www.irs.gov/Tax-Exempt-Bonds/Section-144-Small-Issue-Bond-Defined-10000000-Limit-Manufacturing-Facility. This government-sponsored program is meant to help stimulate public and private investment from abroad and here locally. Manufacturers, assisted living, multi-unit, waste management, and other for-profit entities can take advantage of this
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If you are a manufacturer, bank, or economic-development organization (EDO), you need to know about Section 144 of the IRS Tax code: https://www.irs.gov/Tax-Exempt-Bonds/Section-144-Small-Issue-Bond-Defined-10000000-Limit-Manufacturing-Facility. This government-sponsored program is meant to help stimulate public and private investment from abroad and here locally. Manufacturers, assisted living, multi-unit, waste management, and other for-profit entities can take advantage of this tax-exempt financing.
Tax-exempt financing for manufacturers
Tax-exempt financing for manufacturers under Section 144 of the Internal Revenue Code can save borrowers nearly 35 percent on a loan through a bank. Tax-exempt financing is a broad term that also includes tax-exempt loans made by a bank or private lender to a private enterprise to finance the costs of capital projects. Tax-exempt financing is used for the purpose of investing in new facilities, production lines, machinery and equipment, and technological advancements that help bolster productivity and profit. When utilizing this program, a bank does not have to pay taxes to the federal government and in turn, can pass these savings on to the borrower, with an average savings of 35 percent.
Tax-exempt financing may be used to fund the following assets:
Land: Includes acquisition, site preparation, improvements, infrastructure development (e.g., water, sewer, & rail), and environmental testing.
Building: Includes acquisition, construction, rehabilitation, engineering, architectural, legal, and other related costs
Soft Costs: Includes legal, architectural, engineering, surveying, test boring, title insurance, appraisals, accounting, and financing costs for the project.
Equipment: Includes acquisition, delivery, and installation.
Company acquisition: The acquisition of a manufacturing company structured as an asset purchase can be financed with tax-exempt debt.
Helping foreign and domestic manufacturers expand and invest: Low-cost capital access remains the primary strength of tax-exempt financing. Across the United States, there are billions of dollars available every year for manufacturers to use to fund. However, most EDOs and banks are not aware of this unique way to help manufacturers get a lower rate.
Loan structure
Any loan structure can be used to accommodate a tax-exempt loan including a lease structure. Interest earned by the bank is exempt from federal and state income taxes. The bank, in turn, passes on a lower interest rate — typically, about 35 percent to 40 percent lower — to the borrower. This can translate into significant savings over the life of the loan.
Who’s helping manufacturers
That’s the dilemma? No one is. Most capital-market bankers know about tax-exempt financing but aren’t talking to manufacturers about it. Why? Because capital-market bankers like larger loans ($30 million to $300 million), and by law, a tax-exempt loan to a manufacturer cannot exceed $10 million. On the other hand, most commercial lenders are very interested in loans of
$10 million or less. Unfortunately, most commercial lenders are not aware that they can even offer a manufacturer a tax-exempt loan. The result is no one, neither the capital-market bankers nor the commercial lenders, is telling the manufacturers about the opportunities available with tax-exempt financing.
Why not an IDB?
Some of you may be asking, why not use an industrial development bond (IDB) to fund the debt? Bond-market transactions are actually more complicated and more costly than tax-exempt bank loans (TEBL). In a bond offering you have to pay:
The letter of credit cost alone can run 1.5 percent to 2 percent annually. That’s the same as a lender offering an interest rate 1.5 percent to 2 percent higher than their competitors.
In a TEBL, you do not need an underwriter, a trustee, a remarketing agent, or a letter of credit bank. TEBLs are not as complicated as a bond deal since a TEBL is simply a commercial loan with a tax-exempt interest rate.
The math of a tax-exempt bank loan
On a traditional commercial loan, a bank charges, say, 4 percent interest on that loan. On a $1 million loan for one year, the bank earns $40,000 in interest (of course a regular loan would amortize over a much longer period, like 25 years). If it’s paying 35 percent in taxes, from that $40,000 it pays $14,000 in taxes and keeps $26,000.
With a TEBL, the bank doesn’t pay any income taxes on the interest it receives, so as long as it can still make that $26,000, the bank is just as happy. The manufacturer is much happier as it’s saving a lot of money. The interest rate the bank needs to charge on that $1 million to make $26,000 is, of course, 2.6 percent.
And remember, that’s only for a single year — which would never be the case with a manufacturing loan like this. Over a typical 25-year loan period, a manufacturer that borrows $10 million is looking at roughly $2.7 million in savings.
Mark Lesselroth is the principal of Brenner Business Development. Contact him at mark@brennerbd.com
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