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GAËL Brewing hops into New York state’s farm brewing scene
GENEVA — After leaving a 25-year career behind, George Adams traded in his life savings, his retirement fund, and a bank loan in pursuit of his dream — opening up and running a brewery. “It was the dream, and layoffs woke me up a little bit — the chances of me being an engineer until […]
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GENEVA — After leaving a 25-year career behind, George Adams traded in his life savings, his retirement fund, and a bank loan in pursuit of his dream — opening up and running a brewery.
“It was the dream, and layoffs woke me up a little bit — the chances of me being an engineer until retirement were dwindling,” Adams says. “It was either do it now or not have a chance to do it in this life.”
Adams’ dream materialized when he opened GAËL Brewing Company in June 2015. The microbrewery operates from a 2,500-square-foot facility on Rt. 14 near Seneca Lake in the town of Geneva. The front one-third of the facility serves as a tasting room, while the back two-thirds is designated for production space.
Adams, 49, left his job at Alstom, a multi-national rail transportation company, in January 2014 to pursue his part-time hobby — brewing — on a full-time scale. He and his wife, Beth Lauzon, took on the task of running the business together, though Adams is the sole owner.
At any given time, GAËL Brewing usually has seven beers on tap, and each pint sells for $5. The most popular, Adams says, are Rye Bread Ale and Templederry Irish Stout — known for their classic and authentic Irish flavors. Depending on his mood, Adams says his favorites can be the Sherlock Blonde Ale or Liam’s Irish Red Ale, characterized by their sweet, smooth tastes.
To maintain its microbrewery status, a brewery is limited to producing 60,000 barrels a year or less. GAËL won’t cross this threshold anytime soon — Adams says he brews anywhere from 90-120 barrels each year. The whole process — from milling the grains to fermenting to kegging and beyond — takes about a month, and Adams can only produce about 250 gallons at a time.
While the microbrewery gets its grains primarily from farmers in the Midwest, one of its hops suppliers is located less than 10 miles away.
Area hops farm
Pedersen Farms, a 1,500-acre, family-owned farm in Seneca Castle, grows more than 15 different varieties of hops. Rick Pedersen founded the farm with his wife,
Laura, on just a few acres in 1983. The duo established the first farm east of the Rockies to start farming hops in 1999, Pedersen contends.
“The first couple of years, it was like no one understood what a New York hop was,” he says. “I gave out a lot of free samples for a while.”
After about a decade of coming to understand each hop variety’s prime harvesting schedule — and of giving out free samples — Ithaca Beer Company became the farm’s first customer.
The New York State Farm Brewery Law, which provides tax incentives for both brewers and farmers involved in the production of alcoholic beverages, also helped drive up business between New York growers and brewers, Pedersen says.
Pedersen Farms now sells to more than 25 different breweries in New York and along the east coast, including GAËL.
Pedersen’s hops are of the aroma variety, specifically, and not considered bittering hops. Hops act as a natural preservative in beer, and each kind offers a different taste when used in the brewing process. Cascade, Centennial, and Nugget are three of Pedersen’s most sought-after varieties, he says.
In terms of gross income, hops bring in about the same revenue as any of his other crops, Pedersen says. It’s the work that goes into growing them that he loves.
“It’s a fun crop — it gets in your blood,” he quips. “It’s just, you learn how to do it and there’s a passion and a romance to it.”
The perennial plants are a time-sensitive crop, Pedersen explains. Once they’re harvested, hops have to be used by the brewer in much less than 24 hours to preserve their quality.
They’re also a rare commodity on the East Coast — all of Pedersen’s hops were spoken for as of last September. Brewers have to buy in advance and schedule a pickup or delivery weeks ahead of time, Pedersen says.
Being a new brewer, Adams reached out to Pedersen well before GAËL actually opened up. Since then, GAËL has ordered two shipments of hops from Pedersen Farms and begun to expand its reach beyond the Finger Lakes.
Aside from attracting customers following the Seneca Lake Wine Trail, GAËL distributes its craft beer to area restaurants and bars like Kitty Hoynes at 301 W. Fayette St. in Syracuse and stores such as AJ’s Beer Warehouse at 175 Clay Road in Rochester.
The winter season is slower for business, Adams says, but he’s looking to pick up speed this summer and take advantage of being the “odd ball” on the wine trail.
“We’re on a fairly popular trail, and the town has been more than hospitable to us,” Adams says. “This place is predictably unpredictable.”
Ruscitto to retire as St. Joseph’s Health CEO at year-end
SYRACUSE — Kathryn Ruscitto says she is “almost at the end of all the goals that I set for myself” since joining St. Joseph’s Hospital Health Center in 2001. Ruscitto, the health-care organization’s president & CEO since 2011, has announced her decision to retire at the end of 2016, following six years at the helm.
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SYRACUSE — Kathryn Ruscitto says she is “almost at the end of all the goals that I set for myself” since joining St. Joseph’s Hospital Health Center in 2001.
Ruscitto, the health-care organization’s president & CEO since 2011, has announced her decision to retire at the end of 2016, following six years at the helm.
“I feel the organization has preserved its mission in joining Trinity [Health], has really begun to develop the right framework for the future and responding to health-care reform, and is able to engage the community in a way that is going to help us respond to community needs,” says Ruscitto.
She spoke with CNYBJ on March 11, the same day that the hospital announced her upcoming retirement.
Ruscitto is St. Joseph’s Hospital Health Center’s 13th president and CEO. She replaced Theodore Pasinski on Jan. 1, 2011.
In her time at St. Joseph’s, Ruscitto helped to lead the facility through a multi-year, multi-phase capital project that included a new emergency department; a new 73,000-square-foot surgical suite; and the new Christina M. Nappi Surgical Tower, which the hospital formally opened in September 2014.
Ruscitto also guided the organization through the installation and May 2014 launch of SJLinked, an electronic health-record (EHR) system across the entire organization, including the hospital, clinics, and the primary-care offices of St. Joseph’s Physicians.
Besides the capital project and EHR project, St. Joseph’s Health in July 2015 formally joined Livonia, Michigan–based Trinity Health, which describes itself as “one of the largest multi-institutional, Catholic health-care delivery systems in the nation.”
St. Joseph’s Health, which is the new name for St. Joseph’s Hospital and its affiliates, transferred the nonprofit sponsorship from the Sisters of St. Francis of the Neumann Communities to Trinity Health’s Catholic Health Ministries.
Finances
When asked if she expected St. Joseph’s to improve its financial position in her remaining months as CEO, Ruscitto replied, “That’s already happening.”
St. Joseph’s has reported operating losses in 2014 and in part of 2015, which Ruscitto says the hospital expected when it “made the commitment to continue down the road of community access to care.”
She also points to the $20 million grant the New York State Health Department awarded St. Joseph, which she contends “was in direct recognition” of “putting in place the right services to improve the health of the community.”
St. Joseph’s is using the $20 million award for “debt restructuring and program reinvestment,” according to a March 4 news release from area state lawmakers.
That funding came from the essential health-care provider support program (EHCPSP).
The St. Joseph’s EHCPSP grant is the “largest grant that St. Joseph’s has ever received,” the organization said in a news release.
“The funding has lagged the investment we made,” she says.
Ruscitto defends St. Joseph’s involvement in Primary Care Center – West clinic, which she says provides the neighborhood primary care, pediatric care, care for pregnant women, and mental health treatment.
Primary Care Center – West at 321 Gifford St. in Syracuse was previously known as Westside Family Health Center, according to the St. Joseph’s website.
“We certainly expect to get back to where we were prior to some of those investments with the state support,” she says.
She also notes the Trinity Health sponsorship is helping to reduce overhead costs.
Looking back
When asked what she’s most proud of during her time as CEO, Ruscitto pointed to the hospital’s efforts to “change the way in which it engages the community.”
“The organization got behind the West Side and building the West Side Family Health Center. We have a primary-care practice out in Cazenovia that serves the rural community. We’re helping the Lewis County hospital up in the North Country. We’ve really done a number of things that we have developed really into a system of care,” she adds.
As for what she would’ve done differently, Ruscitto said she would’ve started developing more formal leadership training earlier, even in the decade before she became CEO.
Ruscitto joined St. Joseph’s in 2001 as senior VP for development and governmental affairs. The hospital named her executive VP in 2009.
In the years before joining St. Joseph’s, Ruscitto served as administrator for human services for Onondaga County in 1988 and oversaw the development of the emergency communications center on Onondaga Hill.
St. Joseph’s will soon begin a national search for a new president, the hospital said.
The hospital’s local board of trustees and representatives from St. Joseph’s constituent groups, including physicians and nurses, will help lead the search.
Ruscitto will work with the board of trustees and the Trinity leadership team as they search for the next CEO.
“Our board will still very much be in control of that process in choosing the next leader and I’ll be able to focus more of the rest of this year on the last few things that I want to make sure get completed,” says Ruscitto.
She has also offered to remain in her position until a new leader is in place, the hospital said.
New York manufacturing index turns positive after seven months in decline
Numbers indicating increases in orders and shipments helped generate a positive reading on a key monthly gauge of the New York manufacturing sector for the first time since last summer. The Empire State Manufacturing Survey general business-conditions index rose 17 points to 0.6 in March, its first positive reading since July of last year. That
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Numbers indicating increases in orders and shipments helped generate a positive reading on a key monthly gauge of the New York manufacturing sector for the first time since last summer.
The Empire State Manufacturing Survey general business-conditions index rose 17 points to 0.6 in March, its first positive reading since July of last year.
That beat economists’ average estimate of a reading of -10.5, according to Bloomberg. And, a MarketWatch.com poll of economists had forecast a -10 index number.
The results of the Empire State survey indicate that business activity “steadied” for New York manufacturers in March, the Federal Reserve Bank of New York said in its news release issued March 15.
A positive reading on the index indicates expansion or growth in the sector, while a negative reading points to a decline in manufacturing activity.
The survey found 25 percent of respondents reported that conditions had improved over the month, while roughly the same percentage said that conditions had worsened.
Inside the survey
The new-orders index posted a “steep gain” of 21 points, rising to 9.6, a positive reading that marked the first time orders had increased in several months, according to the New York Fed.
The shipments index “shot up” 25 points to 13.9, signaling an increase in shipments, and the unfilled-orders index edged up three points to -4.0.
The delivery-time index inched down to -4.0. The inventories index fell to -6.9, suggesting a decline in inventory levels.
The prices-paid index held steady at 3.0, indicating a “slight increase” in input prices. At -6.0, the prices-received index pointed to a small decline in selling prices.
The index for number of employees edged down to -2.0, indicating that employment levels remained “fairly steady,” and the average-workweek index rose to 2.0, a sign that the average workweek was also “little changed.”
Indexes for the six-month outlook indicated that conditions are expected to improve in the months ahead.
The index for future business conditions climbed 11 points to 25.5.
The index for future new orders advanced 17 points to 38.9, its highest level in more than a year, and the index for future shipments rose 10 points to 33.3.
The capital-expenditures index moved up 3 points to 15.8, and the technology-spending index rose to 9.9.
The New York Fed distributes the Empire State Manufacturing Surveyon the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.
Business Tax Cuts Help Everyone
If you remember the movie “Animal House,” you remember Bluto — John Belushi’s character. In one scene, he exhorts his glum fraternity pals. He gives an emotional and rousing pep talk — ordering them to follow him. He flings his fist in the air, rends the air with a banshee rallying cry, and charges out
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If you remember the movie “Animal House,” you remember Bluto — John Belushi’s character. In one scene, he exhorts his glum fraternity pals.
He gives an emotional and rousing pep talk — ordering them to follow him. He flings his fist in the air, rends the air with a banshee rallying cry, and charges out of the room.
Yet, nobody stirs.
Okay, here is a rallying cry: Let’s cut taxes on big business. Let’s cut taxes on small business. Slash them big time. Hurrahs all around. All in favor raise your … I said all in favor … Wait a minute. Hello, hello. Is anybody awake out there?
Nobody is much interested. Well, a few business people are interested, as are some diehard free marketers. All those filthy capitalists, they like the idea. But the good ole suffering folks in the middle class? Nah.
Here is why they don’t like the idea of cutting business taxes. And here is why they should love it.
They don’t like it because median family income in the U.S. is the same as it was in 2000. The average family has seen no gains. The average worker and family are treading water. They figure they are not gaining, so why give a break to business?
You can fling buckets of figures at them. They don’t care. Look at this trend line. Look how savage the recession was. Blah, blah, blah. Their answer is: We are treading water; we’re the ones who need the tax cut.
Here is why middle-class workers should love the idea of a tax cut for business. It is a tax cut for them and a chance for a raise. How can this be? It is because companies don’t pay taxes. Employees and customers pay them. They pay the taxes levied on businesses.
How do they pay them? Companies simply pass tax costs on in several ways: by holding a lid on salaries, trimming benefits, hiring fewer people, or by laying off more. Or the businesses raise prices or cut services.
It truly is as simple as that. Imagine a grocery store in your town. Tonight, the city council levies a 10 percent tax on all the profits for the store. That store will stay open all night, so that workers can raise the prices on every item before morning.
So theoretically, the store pays the tax. But in reality, you the customer pay it. And you the employee pay it, when the store cuts your hours. It trims your hours because the higher prices slow down sales.
You probably know Larry Kudlow from TV or radio. Or, you read his columns. When it comes to our economy, Kudlow is as clear-headed as you will find. He says our middle class has suffered because our economy grows too slowly.
Since 2000, the economy has averaged 2 percent growth per year. That’s not nearly enough. From 1950 to 2000, the economy averaged 3.5 percent growth. If the economy had grown at 3.5 percent annually over the last 14 years, the average household income would have soared — instead of soured.
To Kudlow, the solution is simple: Cut corporate taxes to 15 percent. For large and small businesses. Let companies deduct right away every penny they invest for growth. (They currently have to spread the deduction over many years.) And let’s cut taxes on the profits that companies stash overseas. — to make it easy for them to bring the money back to the U.S.
Kudlow argues that this will stimulate the economy more than anything else. I believe he is right — because it is a middle-class tax cut, as I discussed above.
The economy needs to grow more rapidly to help the middle class. Folks in the middle class need such a tax cut for business — whether or not they realize it directly helps them.
When companies pay taxes, it is we who pay them — through higher prices and lower pay and benefits. When companies get tax cuts it is we who get them — through lower prices and more pay and benefits. And through companies expanding.
The time is ripe for tax cuts for business. Because those cuts are for us.
From Tom…as in Morgan.
Tom Morgan writes about political, financial and other subjects from his home near Oneonta. Several upstate radio stations carry his daily commentary, Tom Morgan’s Money Talk. Contact him at tomasinmorgan@yahoo.com
Middle-Class New Yorkers Deserve a Break
On a regular basis, residents of the Mohawk Valley and North Country carefully craft responsible budgets for their families. Lawmakers in Albany, however, aren’t nearly as vigilant when it comes to spending the hard-earned dollars of working-class New Yorkers. The middle class was hit hardest by the recession, which still impacts lives today. Dollars just
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On a regular basis, residents of the Mohawk Valley and North Country carefully craft responsible budgets for their families. Lawmakers in Albany, however, aren’t nearly as vigilant when it comes to spending the hard-earned dollars of working-class New Yorkers.
The middle class was hit hardest by the recession, which still impacts lives today. Dollars just don’t stretch as far as they used to.
Recently, the New York Senate Republicans unveiled a seven-year tax relief proposal that would reduce middle-class taxes by 25 percent, saving New Yorkers $3.5 billion. Annually, about 8 million households could expect nearly $900 in savings. I would like to review their plan more carefully, but I applaud their efforts and encourage Assembly Democrats to adopt similar or even stronger tax-relief measures. I have always fought to put more money back into the pockets of the working class.
Last year, two of New York’s top legislative leaders were convicted of corruption, the Empire State had among the highest taxes in the nation, and it ranked dead last on almost every business climate and economic ranking in the country. Assembly Democrats, meanwhile, have not taken any steps to fix these deeply-rooted problems. Instead they block efforts to pass ethics reforms, and instead fight for free college tuition for illegal immigrants and incarcerated criminals, wage a war on successful New Yorkers by increasing their taxes, and call for an aggressive 67 percent minimum-wage increase. This wage increase, according to the Empire Center, could cost the state a minimum of 200,000 jobs statewide.
There is a serious disconnect between New York City priorities and upstate New York values. I believe New Yorkers should be able to keep more of their hard-earned dollars. Additionally, we must support small businesses by creating a friendlier business and economic climate.
I encourage my Assembly colleagues to evaluate their policies and how they will hurt upstate New York residents and businesses, and adopt measures that will help families, seniors, and mom-and-pop job creators. Now is the time to make our state more affordable for residents and business owners alike. I hope my legislative colleagues do not squander the opportunity.
Marc W. Butler (R,C,I–Newport) is a New York State Assemblyman for the 118th District, which encompasses parts of Oneida, Herkimer, and St. Lawrence counties, as well as all of Hamilton and Fulton counties. Contact him at butlerm@assembly.state.ny.us

Hartman Enterprises plans major expansion
ONEIDA — Tucked into a neighborhood in the city of Oneida stands a 25,000-square-foot building, the home of Hartman Enterprises, Inc. The structure is filled with modern computer-numerical-control (CNC) turning and milling machines, routers, grinders, welding equipment, cutters, and a wide assortment of tooling. In fact, there are so many machines that there is no
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ONEIDA — Tucked into a neighborhood in the city of Oneida stands a 25,000-square-foot building, the home of Hartman Enterprises, Inc. The structure is filled with modern computer-numerical-control (CNC) turning and milling machines, routers, grinders, welding equipment, cutters, and a wide assortment of tooling. In fact, there are so many machines that there is no room to expand.
“We’ve outgrown our current space,” says Jaime A. Sweet, Hartman’s president and CEO. “Our [strategic] plan projects a 40 percent to 50 percent increase in business over the next five years, which requires us to operate in 50,000 square feet with a better layout. Our current site doesn’t allow us to expand, so we need to find a location to accommodate our anticipated growth. My preference is to find an existing building on 5 acres that has the infrastructure we need and moderately priced electricity to reduce the cost of our heavy electrical consumption.”
Sweet, the third generation of the family to operate the company, which produces precision-machined parts, has already begun reaching out to area industrial-development agencies for guidance.
The start
“Terry Hartman and my grandfather founded Hartman Enterprises in 1972,” says Sweet. “He started out as a toolmaker at New York Air Brake in Watertown and moved to Utica to work with Bendix [Corp.] as an electrical project engineer, all while getting his MBA at Utica College [of Syracuse University]. Grandfather created Mohawk Industrial Labs, a machine shop in Vernon, before joining Terry Hartman. The two acquired Hinman Milking Machine Co. to make parts for milking machines and feed carts in the area before Hartman sold his interest to my grandfather. What began as a modest business serving the agricultural sector has blossomed into a manufacturer now serving the oil and gas, electrical-equipment, power transmission and generation, transportation, and fire-arms industries, to name just a few.”
Sweet gives credit to her father, Robert E. Sweet, Jr., for setting the company on a growth path. “Dad joined Hartman when he was 19,” she notes. “He didn’t attend college; [rather] he immersed himself in the business first as an apprentice to toolmakers, including my grandfather. He also received a certificate in welding and took multiple classes on manufacturing. It was his persistence that introduced the first CNC machine into the operation, and he taught himself how to program the unit, called a Mori Seiki. When dad joined the firm in the 1970s, the business operated one shift with six employees. The company now employs 45 and runs two shifts. In his more than three decades running the company, my father added 15,000 square feet to the original building to accommodate the growth to our current level.”
CNYBJ estimates Hartman’s annual revenue at $8 million. The corporate stock, which owns the operating company and the real estate, is held by the Sweet family.
Growth plans
Sweet has set out aggressive plans for growth. “I am in the process of applying to New York State for certification as a woman-owned business enterprise (WBE),” she states. “The benefits of certification include being listed on the state directory of certified businesses, access to procurement opportunities with state agencies and authorities, receiving alerts for upcoming procurement opportunities, access to lending and borrowing programs set aside for WBEs, and access to a statewide network of services and support. The WBE certification should also open doors to large corporations, which have similar outreach programs.”
The New York State program is operated by Empire State Development’s Division of Minority and Women’s Business Development. The program is designed to promote equality of economic opportunities for minorities and women to eliminate barriers to participating in state contracts. According to the 2014-2015 division annual report, of more than $7 billion spent by state agencies and authorities in that fiscal year, about $900 million was contracted to WBEs. In October 2014, Gov. Andrew Cuomo increased the participation-rate goal for minority and women-owned businesses to 30 percent. When he took office, the rate was 10 percent.
Hartman is also located in a HUBZone, set up by the U.S. Small Business Administration (SBA) for small companies that operate and employ people in a historically underutilized business zone. The primary goal of the program is to provide incentives for the federal government to contract with businesses operating in these zones.
“I believe the certifications will open up business especially from the Department of Defense and from the aerospace industry,” says Sweet. “These two sectors have the potential for substantial additional sales. Hartman is working now on being certified to work in both sectors. We are also seeing increased orders from the transportation and firearms sectors, which are both growing and offsetting decreases in oil and gas. Our continuing drive to diversify our markets is the main focus to grow our sales by 40 percent, which will necessitate an increase in employment of more than 20 percent.”
Sweet attributes the firm’s success to its staff. “Hartman has a very skilled workforce,” asserts the company CEO, “which is our biggest asset. Many of our employees have been with the company for more than a decade, and their accumulated skills allow us to create incredibly tight tolerances and consistency in the parts we produce.”
The management team includes Sweet; Jim Rager, the general manager, who joined Hartman in 2014; a shop-floor manager; process-controller engineer; and a night-shift supervisor. Sweet also acknowledges the contribution of outside professional firms that support the company: M&T Bank and Community Bank for financial services; Hancock & Estabrook, LLP for legal advice; D’Arcangelo & Co. LLP for accounting; and Nathan G. Hanna, LLC for investment and retirement services.
Hartman’s continued success depends on finding and hiring talented employees. “This is my biggest concern,” contends Sweet. “We have no problem retaining employees, but it’s a challenge in this area to find skilled employees with a strong work ethic. This problem is already … [inhibiting] the rate at which we can grow. I have reached out to BOCES and SUNYIT (now SUNY Polytechnic Institute) through open houses to attract their STEM (science, technology, engineering, and math) students. The next step is to offer internships. There is a lot of competition for talent in this area, so we need to be aggressive in identifying potential new hires.”
Sweet’s ascension to the Hartman presidency in May 2014 was accelerated by the untimely death of her father who passed away at the age of 58. “This business was always my home,” says Sweet. “For years, I worked at Hartman alongside my father, and we shared not just the details of the business but also his vision. Even though I pursued a career in nursing and became a nurse-practitioner, I always knew that someday I would run the company. After dad became sick, we talked at great length about the … [succession]. As difficult as it still is to deal with his passing, I felt prepared to ensure the continuity of Hartman.”
Jaime Sweet grew up in Oneida. She earned her associate degree in nursing and an associate degree in math and science from Mohawk Valley Community College in 2004. In 2011, Sweet earned a bachelor’s degree in nursing and a master’s degree as a family-nurse practitioner. She has also taken business courses at Morrisville State College. Sweet resides in Frankfort.

Bank of America boosts employment at Utica contact center
UTICA — In December, Michael W. Brunner, Central New York market president for Bank of America, shared with local partners, clients, and friends the bank’s decision to expand its services at the Horatio Street customer contact center and boost the employment to handle the growing national volume of calls. “There are approximately 600 employees at
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UTICA — In December, Michael W. Brunner, Central New York market president for Bank of America, shared with local partners, clients, and friends the bank’s decision to expand its services at the Horatio Street customer contact center and boost the employment to handle the growing national volume of calls.
“There are approximately 600 employees at the Horatio Street center,” Brunner says during an interview at his Syracuse office. “Bank of America is transferring 250 of the current positions in research and adjustments and in legal-order processing to bank locations in Atlanta and Newark, Delaware. Offsetting these transfers, the bank is adding 400 new positions [in Utica] to augment our phone-contact and chat personnel. The net increase in personnel will total 150. The transfers will be completed by the end of July, and the new hires will join the center throughout 2016, bringing total employment at the center to approximately 750 by year-end.
Bank of America’s growing mobile-banking customer base is compelling the moves.
“To give you just one idea of the volume of activity driving this decision,” says Brunner, “the bank is adding 5,500 mobile customers daily, and in the third quarter [of last year] it processed 20 million checks from mobile customers. This center alone handles 75,000 [incoming] calls a week.” The contact center, which is one of several nationwide, operates Mondays through Fridays from 7 a.m. to 10 p.m. and on weekends from 8 a.m. to 8 p.m. Eastern time.
The Bank of America contact center is located in a 164,000-square-foot, one-story structure situated on 60 acres. The facility originally opened in 1971 as the Horatio Mall, a shopping center with a W.T. Grant store as the anchor tenant. By 1976, it had failed as a retail operation, and converted to a high-tech center with Cogar Corporation manufacturing computer products. International Computers Ltd. subsequently acquired the business and began to wind down its operations in 1985. In 1987, Norstar Bank created an operations center on the site, before it was acquired by Fleet Bank, which in turn was acquired by Bank of America.
Recent growth
Brunner points with pride to the growth of the Horatio Street site since 2012. “Just in the last three years, this center has doubled in size, and now it’s going to grow another 25 percent this year. This is a testament to our ability to hire employees in the Utica area and to their work ethic. We have a very strong base from which to hire, and our new hires bring to their jobs a desire to learn. With the growing number of products offered by the bank and their complexity, it’s critical that the employees are knowledgeable about our offerings. The Utica contact center has had strong performance from the existing team and remains one of the top-performing centers for the bank,” he says.
Brunner explains that “[c]ustomer inquiries into the center range from customers making payments to asking specific questions about their accounts. Many of the new [employee] roles will be focused on the chat component, which will make it easier for customers who need assistance while searching online. The center not only provides information, but in the long run, it also supports our sales and marketing activities. With all of the banking channels available to our customers, access to a live person is still essential. In short, the contact center, which is critical to our retail-delivery process, serves as an important channel for quickly finding information, resources, and expertise.”
Today’s customer contact centers are striving to change the public’s perception of the old call center. Many think of Lily Tomlin’s character “Ernestine,” the chatty, condescending telephone operator who showed little sympathy for her customers. Ernestine sat at her switchboard taking calls, except when she was busy talking to her boyfriend, and frequently responded to callers with barbed remarks. Customers are frustrated by some banks running their call centers like cost centers, where time-and-motion studies encourage operators to provide the least amount of service to satisfy the customer. This translates into minimizing the number and duration of calls. Others are put off by the lack of employee product knowledge or incomprehensible speech.
“Retaining customer loyalty means winning the battle of the customer experience, and that only happens when the focus is customer-centric,” opines Brunner. “Our operators are trained to take whatever time is necessary to resolve customers’ questions.”
Retail-banking research by Gallup, Inc. supports the idea that contact-center employees successfully drive sales when they focus on the customers’ needs and not on the bank’s. According to Gallup, the key conversational drivers are the employee’s knowledge of the bank’s products and services, asking the right questions to identify customer needs, clearly explaining the overall benefits of doing business with the bank, understanding the customer’s financial goals, providing solutions that aligned with the needs, and expressing sincere interest in improving a customer’s financial position.
Brunner
In addition to his title as market president, Brunner is also a senior VP, global commercial banking senior relationship manager. He is responsible for the more than 800 employees in Onondaga and Oneida counties where Bank of America operates 12 bank branches, the contact center, and two Merrill Lynch offices. As a senior relationship manager, Brunner is responsible for managing middle-market relationships in the region and coordinating business-development activities. As he likes to say, “Our commercial region extends between the falls — Seneca Falls and Little Falls.” Worldwide, Bank of America (NYSE: BAC), the number two U.S. bank as measured by assets, serves about 44 million consumers and 3 million small businesses in 4,700 retail financial centers. The Charlotte, North Carolina–based banking company operates in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, and in 35 countries.
Community activities
Brunner leads a team focused on community involvement and engagement, including overseeing philanthropic grants.
“Bank of America has instituted a nationwide initiative to focus on the communities we serve,” declares Brunner. “In the Central New York region, we are focused on three areas designed to help the community: housing, hunger, and creating jobs.”
Brunner explains. “The bank has partnered nationally with Habitat for Humanity, launching a multi-city build which takes place simultaneously in 36 communities within a period of one week. It’s a $6 million commitment to local [Habitat] affiliates to help revitalize their communities. In Syracuse, the bank gave a $20,000 grant to sponsor Habitat for Humanity’s ‘veteran build.’ We are also proud that a number of employees volunteered to build walls during the week.”
Brunner next notes Bank of America’s efforts to allay hunger. “Nationally, the bank sponsors an enterprise initiative we call ‘Give a Meal,’ ” adds the market president. “This supports a national effort called Feeding America. Locally, the bank has channeled its charitable giving to the Food Bank of Central New York, and our volunteers have pitched in to help and to offer support to the board of directors.”
Bank of America is also focused on eradicating financial illiteracy. To this end, the bank has teamed up with the Khan Academy, a leader in online learning, to produce a program called ‘Better Money Habits.’
“The website — BetterMoneyHabits.com — is a free service that allows anyone to understand finances,” Brunner stresses. “The goal is to teach the underlying principles of personal finance, which then puts an individual in the position to ask the right questions. Bank of America and Khan launched the website [in 2013], and to date we have received thousands of ideas and suggestions. This keeps us connected to the consumer and small-business people.”
The bank’s focus on financial literacy stems from a Bank of America/Harris Interactive poll taken in 2013, which identified that 69 percent of U.S. adults cite money as a “top stressor,” 32 percent recognize a lack of financial knowledge has led to making poor financial decisions, and 43 percent feel they have missed out on good financial opportunities.
In 2015, the Bank of America Charitable Foundation provided $303,607 in grants and matching gifts to the Syracuse/Utica market. The bank’s Central New York employees logged more than 7,000 volunteer-hours in 2015.
Entrepreneurial Leadership: The Answer to Fixing Our Economy
We need more entrepreneurs and startups in America to restore our economy, one that was once the envy of the world. Entrepreneurs are people who own businesses. However, I know a lot of them that are not very entrepreneurial. Startups are new companies whose failure rate runs between 50 percent and 85 percent, depending on
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We need more entrepreneurs and startups in America to restore our economy, one that was once the envy of the world. Entrepreneurs are people who own businesses. However, I know a lot of them that are not very entrepreneurial. Startups are new companies whose failure rate runs between 50 percent and 85 percent, depending on whose statistics you want to believe. Neither is the solution to our problems; what we need is more entrepreneurial leaders.
Entrepreneurial leadership is a special form of leadership that begins with the creative process often referred to as “being entrepreneurial.” This process is commonly described as taking financial risks in the hope of making a profit, or “being enterprising.”
Entrepreneurship, however, is much more than this; it is a process whose purpose is to generate new business. For the purposes of our discussion, business is defined as “products, services, and the organizations needed to deliver them.”
All organizations, regardless of type, need to provide products and services to grow and survive. Business is not only good for the economy; it is the engine that keeps it moving and growing. Entrepreneurs are — and always have been — the major generators of business; however, this need not be the case.
As a preliminary measure, the good entrepreneurial leader realizes that — contrary to what might be the prevailing business ethos — the art of generating new business is selfless, and not selfish. He or she understands that the business world should be a “you” world, not a “we” or “me” world. By that, I mean that good entrepreneurial leaders focus on the needs and wants of the consumer, knowing that by satisfying the consumer first, the “we” and “me” will benefit later.
I have found that entrepreneurial leadership is a process that can be taught and must be learned over time. Many of my students are successful entrepreneurial leaders. Entrepreneurial leadership is not, as many people seem to believe, just the ability to form an organization. Entrepreneurial leadership is much more than creating startups. It is a process whose purpose is generating new business. The process involves recognizing an opportunity to pursue and forming a team and an organization to deliver it, keeping in mind that entrepreneurial leaders are the driving force behind generating new business.
This process isn’t confined to privately owned companies, publicly traded companies, or nonprofits. It’s certainly not confined to businesses just starting out either. Entrepreneurial leadership is vital to all forms of organizations at all stages of their development. It is even essential and possible in government — contrary to popular opinion. Entrepreneurial leaders are the driving force behind generating new business, and all organizations need new business to sustain themselves and grow.
The beginning
The entrepreneurial process begins with recognizing an opportunity, which is the chance to create a product, service, or organization and successfully bring it to market. Recognizing an opportunity can happen in the “startup” stage, or in the midst of a well-established company or organization. The most critical thing an entrepreneurial leader must know how to do is distinguish an opportunity worth pursuing. Pursuing ideas that are not real opportunities is a sure path to failure.
In the grocery industry in the 1990s, 30,000 new products were introduced each year. Considering that supermarkets carried only 25,000 items each, the success rate of new products was less than 1 percent. Yet at Adirondack Beverages, where I was CEO, our new product success rate exceeded 90 percent. How did we accomplish this?
The answer lies in my five-step “Opportunity Model,” which I developed after many years of working in the highly competitive grocery industry. With my team’s help, I tested, implemented, and improved a model that I have used throughout my career as a successful entrepreneurial leader.
The five steps of my “Opportunity Model” are:
1. Identify a commercially viable problem
The problem you identify must be ready to be solved, and the solution to the problem must be commercially viable. In other words, there must be a large enough demand for a solution if the product or service is to be commercially feasible.
2. Create a product or service that has a strong competitive and comparative advantage
Your product or service must be unique, in that it must be positioned as better in some way then existing products and services. Securing effective distribution channels, as well as creating awareness for your product or service, is also essential to achieving a competitive and comparative advantage.
3. Ensure that your product or service is sustainable through patents, trademarks, first-mover advantage, and continuous improvement
Successfully launching your product or service is a great first step, but long-term success is dependent on protecting your intellectual capital with patents or trademarks, or both. Staying ahead of your competitors also means continuously improving your product or service.
4. Secure your product or service’s profitability
Due to initial startup costs, very few products or services are profitable when they’re first introduced. Yet survival and success are dependent on taking in more than you pay out. Profits are for a company what a salary is to an employee.
5. Build an effective team
While nearly all new products or services begin with a sole individual’s idea, they seldom get off the ground without a team. That team should include the entrepreneurial leader, as well as team members with complementary skills.
Knowing how to generate new business, however, is never enough. Doing it demands the ability to lead. Persuading your people to buy into the opportunity, cooperate willingly, and make the opportunity real and successful requires professional and personal leadership.
Angelo Mastrangelo, Ph.D., is an entrepreneur, professor, and author of “Entreprenurial Leadership: A Practical Guide to Generating New Business.” In 2001, he began teaching leadership and entrepreneurship at Binghamton University. In 2007 he was named as one of the top entrepreneurship professors in the U.S. by Fortune Small Business. To learn more about Mastrangelo or contact him, visit: http://www.profmastrangelo.com

Jefferson County vet says launching a new farm brewery is a ‘long process’
EVANS MILLS — Paul Kilgore started home brewing beer in 1994. More than 20 years later, he’s working to open his own brewery. Kilgore is the owner and head brewer of WAORGANY Brewing, LLC, (pronounced WAR-guh-nee). He plans to start operations in Evans Mills (northeast of Watertown) later this year. “It’s quite a long process,”
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EVANS MILLS — Paul Kilgore started home brewing beer in 1994. More than 20 years later, he’s working to open his own brewery.
Kilgore is the owner and head brewer of WAORGANY Brewing, LLC, (pronounced WAR-guh-nee). He plans to start operations in Evans Mills (northeast of Watertown) later this year.
“It’s quite a long process,” says Kilgore, who spoke with CNYBJ on Feb. 25.
WAORGANY Brewing, LLC is a farm brewery, according to its website. The name WAORGANY includes the abbreviations for Washington, Oregon, Georgia, and New York, places where Kilgore has either lived or served in the military.
Kilgore, a veteran of the U.S. Army, cannot conduct commercial brewing activities until the federal TTB and New York grant him a license. TTB is the federal Alcohol and Tobacco Tax and Trade Bureau, which is part of the U.S. Department of the Treasury. He’ll need to secure the TTB brewer’s permit before he can apply for the New York farm brewery license.
Kilgore is taking the steps necessary to secure the TTB license, he says. That process includes securing a location with all the proper equipment.
“Once you have all your equipment in place, then you can apply for your license to brew,” he says.
The application process takes between three and six months to get approval, he adds.
His most immediate objective is finding a location.
“I’m in the process of looking at a few properties right now,” says Kilgore.
He plans to buy an existing structure and modify it to meet the needs of a brewery.
“We’ll probably be doing most of the work that we can ourselves,” he says, noting he’s aware of a contractor he’ll work with once he determines what work needs to be done.
Future operations
WAORGANY Brewing will begin as a manufacturing operation, producing all its beers and ales “in-house.”
“We’re going to be licensed as a New York State farm brewery, so we’ll be able to actually serve our beers directly from a tap room at our facility,” says Kilgore.
With a New York State farm brewery license, he will eventually think about self-distributing the products, he notes.
WAORGANY will be what Kilgore refers to as a nano brewery, meaning it will produce its beer and ales using a three-barrel brew system.
“All the other breweries are five-barrel breweries or bigger,” says Kilgore, referring to all other breweries in Jefferson County.
Project financing
Financing the project is his “biggest” concern as the project moves forward, he notes.
Kilgore estimates it will cost between $300,000 and $500,000 to launch WAORGANY Brewing.
He’ll use some of his own cash. A “long- time friend” might partner with Kilgore. “We’re still trying to work out the details on that,” he says.
Figuring he’ll still need more money, Kilgore plans to seek an angel investor or another partner or pursue additional financing through the U.S. Small Business Administration.
Kilgore figures he’s accumulated about 20 percent of the financing he needs for the project as of late February.
His business plan for the company was among the top finishers in a recent competition for veterans.
The Jefferson County veteran won $20,000 as the 2nd place finisher in the 2016 D’Aniello Family Foundation Business Plan Competition in Charlotte, North Carolina.
Kilgore’s plan for WAORGANY Brewing was part of the competition that Syracuse University’s Institute for Veterans and Military Families (IVMF) organized.
The prize money will be “big help,” Kilgore says, noting he will probably use it to get a new computer and software for the brewery.
“The rest of the money will be used for working capital and whatever kind of equipment we need to get,” says Kilgore.
EBV program
Kilgore served in the U.S. Army for 21 years, including two stints at Fort Drum and a deployment for service in Iraq during 2005 and 2006. He retired from service in 2007.
Kilgore got involved with the IVMF’s entrepreneurship bootcamp for veterans with disabilities (EBV) through Cornell University in late 2014 because “it was still taking applications.”
The instruction included online work and an on-campus residency that lasted nine days, he says.
Kilgore compares it taking a two-year MBA degree program and “cramming it into a little over six weeks.”
“It was pretty extensive,” he says.

St. Lawrence alum Kirk Douglas, wife to give school $2M for scholarships, dorm upkeep
CANTON — A well-known alumnus and his wife are again sharing their wealth with a North Country institution of higher learning. Actor Kirk Douglas and his wife, Anne, are donating $2 million to St. Lawrence University to further endow scholarships and to help maintain a residence hall named after the actor. Douglas, 99, graduated from
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CANTON — A well-known alumnus and his wife are again sharing their wealth with a North Country institution of higher learning.
Actor Kirk Douglas and his wife, Anne, are donating $2 million to St. Lawrence University to further endow scholarships and to help maintain a residence hall named after the actor.
Douglas, 99, graduated from St. Lawrence nearly 77 years ago.
Through the Douglas Foundation, the couple has donated a total of $7 million to St. Lawrence since 2012, the university said in a news release.
This latest gift designates $1 million to the Kirk Douglas Scholarship fund, established in 1999. In addition, the donation includes $1 million to endow the improvement, repair, maintenance, and operation of Kirk Douglas Hall, a 155-bed residence hall that opened in 2014.
The Douglases in 2012 contributed $5 million specifically for the Kirk Douglas Scholarship fund, the school said.
St. Lawrence selects two Douglas Scholars each year from underrepresented and low-income backgrounds.
The school picks the scholarship recipients based on their “demonstrated leadership skills, ambition and potential to contribute to diversity with the campus community,” according to the news release.
St. Lawrence then provides mentoring; a loan-free education including required textbooks; and a “guaranteed” experiential learning opportunity that could be an internship, research fellowship, or other “self-designed opportunity.”
St. Lawrence currently has six Douglas Scholars who come from Schenectady and New York City, along with California, Illinois, Maryland, and Minnesota.
“We are immensely grateful for Kirk and Anne’s continued commitment to St. Lawrence,” William Fox, president of St. Lawrence University, said in the release. “This most recent gift will increase access for cohorts of deserving young scholars and enrich the St. Lawrence experience for many more students.”
Douglas, who grew up in Amsterdam, New York, graduated from St. Lawrence University in 1939 with a degree in English.
As a student, Douglas was president of the student-government organization and a member of the wrestling team and German club, the university said. He also participated in dramatic productions on campus.
St. Lawrence University awarded Douglas an honorary degree in 1958, according to the news release.
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