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SBA Syracuse District loan approvals, dollar value rise in 2014 fiscal year
SYRACUSE, N.Y. — The Syracuse district office of the U.S. Small Business Administration (SBA) supported 648 loans valued at nearly $147 million during the 2014

Cellular Sales opens new store in Rome
ROME, N.Y. — Cellular Sales, which says it’s the nation’s largest Verizon Wireless retailer, has opened a store in Rome. The 2,500-square-foot location at 320

USDA solicits proposals for third round of Greek-yogurt pilot program
The U.S. Department of Agriculture (USDA) is soliciting proposals from Greek-yogurt producers for the third round of a pilot program that provides yogurt for schools
Schumer: federal grant to pay for stream gauges along state canal system
The Federal Emergency Management Agency (FEMA) has awarded the New York State Canal flood-warning system a grant of nearly $1.5 million for the installation of

Red Cross restructures CNY region, lays off 10 employees
SYRACUSE — The American Red Cross has once again restructured its Central New York region. The nonprofit humanitarian organization has consolidated its three upstate New York regions into two. As a result, the 16 counties of the CNY region were split up. Its seven North Country and Mohawk Valley counties, staffed by six employees, now
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SYRACUSE — The American Red Cross has once again restructured its Central New York region.
The nonprofit humanitarian organization has consolidated its three upstate New York regions into two. As a result, the 16 counties of the CNY region were split up. Its seven North Country and Mohawk Valley counties, staffed by six employees, now report to the Eastern New York region. The nine CNY and Southern Tier counties merged with the Western New York region.
The Red Cross laid off 10 employees in the CNY region the week of Oct. 13.
Rosie Taravella of the CNY region now serves as the CEO of the American Red Cross of Western & Central New York Region (WCNY).
Taravella spoke with the Business Journal News Network about the changes on Oct. 31.
The American Red Cross of the CNY reorganized two years ago and consolidated into 16 CNY counties. At that time, the North Central New York Region of the American Red Cross merged with the Southern Tier Region to become the American Red Cross, Central New York Region.
The new consolidation is part of a national restructuring, due in part to an effort to recover from a 10 percent to 15 percent decline in funding from the national humanitarian service division in the last fiscal year.
The American Red Cross has downsized from 450 national chapters to 300, and cut 1,500 jobs in the past year.
Taravella says that part of the reason for the decrease in funding is that during that time donors were contributing to relief efforts for disasters, such as hurricanes and tornadoes, and weren’t inclined to give again to the organization.
The Red Cross provides emergency assistance to people affected by fires, floods and other disasters, as well as disaster- preparedness education, blood drives, and emergency communication to the Armed Forces.
New WCNY region
The WCNY region includes the Western New York, Greater Rochester, Finger Lakes, Southern Tier, and Central New York chapters. The newly formed region employs 58 people across 26 counties and has a combined budget of about $8 million to $9 million.
According to the new national model, each chapter will now retain a headquarters office in the chapter’s largest city, as well as one satellite office. Each chapter will have an executive director to coordinate its area. The WCNY region currently operates 20 offices, but over the next year and half, Taravella says it will phase out 10 offices to follow the national model, reduce costs, and re-allocate the money that had been going toward rent back into services.
The WCNY regional headquarters, as well as the CNY chapter will be based at 344 W. Genesee St. in Syracuse. The CNY chapter will also retain the Madison County office, located at 134 Vanderbilt Ave. in Oneida. This office is staffed by volunteers. The locations in Oswego, Auburn, and Cortland are among those being closed, and the managers who operated those offices were let go as part of the regional layoffs announced to the staff the week of Oct. 13.
In the Southern Tier, the chapter office remains open in Endicott with a satellite office in Ithaca.
Though no longer part of Taravella’s territory, Watertown remains the North Country headquarters with a satellite office in Plattsburgh. Additionally, the Potsdam office, which is staffed by volunteers and located in a donated space, will stay open. “If an office is free and staffed by volunteers, we’ll keep it,” says Taravella.
Taravella says she was informed of the consolidation efforts in June, and then notified employees that a reduction in the workforce would take place in the coming months, although she could not give the employees a specific date of when that would take place. By mid-September, the Northeast division office notified her that the layoff regions would be announced the second week of October. Monday, Nov. 3, was the last day the laid-off employees were in the office.
The Red Cross maintains a fleet of vehicles and trailers to allow employees and volunteers to get out in the field. “In the end, that’s what we do. We mobilize to get out to the places in need,” says Taravella.
In the coming weeks, Taravella will travel across the region to speak at town-hall meetings about the recent changes. She will let community members know that while the Red Cross may no longer have a physical presence in their area, it still serves the community.
With an expanded footprint that includes about 4 million people and a staff across 26 counties now, Taravella says that the agency relies on the partnerships it has with other nonprofit and government organizations, businesses, and community volunteers, as well as the strength of its staff.
“I can’t do it without good people,” says Taravella.
The leadership team for WCNY is also spread throughout the region, but the COO, Scott Aminov, and chief development officer, Judith Pollman, operate from the Syracuse headquarters.
The Red Cross has two types of staff positions, territory managers and subject matter managers, and Taravella says it’s “my job is to make sure they have everything they need.”
Contact Collins at ncollins@cnybj.com
ICS continues 25 percent compounded growth
ENDICOTT — Five years ago, America laughed at the release of an animated film entitled “Cloudy with a Chance of Meatballs,” a story about an inventor and a town where food falls from the sky like rain. For ICS Solutions Group (ICS) headquartered in Endicott, it’s getting very cloudy, but it’s not food falling from
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ENDICOTT — Five years ago, America laughed at the release of an animated film entitled “Cloudy with a Chance of Meatballs,” a story about an inventor and a town where food falls from the sky like rain. For ICS Solutions Group (ICS) headquartered in Endicott, it’s getting very cloudy, but it’s not food falling from the sky.
Rather, customer demand is raining down, and that is driving the double-digit corporate growth.
The business community is looking to the cloud. In this case, the cloud is not a visible body of water droplets that weather forecasters talk about, but a metaphor for Internet-based computing that allows large groups of networked, remote servers to access centralized data storage and offers online access to shared computer services or resources. For a user, the network elements are invisible, as if hidden in a cloud.
“We see a definite trend of our customers moving to the cloud,” says Travis Hayes, a co-owner of ICS and the company’s chief technology officer. “The traditional model of buying dedicated hardware and depreciating it over time is being replaced by a model where the customer uses a shared cloud infrastructure and pays as he uses it. That means no upfront investment; a company can focus on running the business and not worry about buying and supporting infrastructure.
“ICS’s customers need to have the tools to collaborate among their employees who may be in multiple offices, telecommuting, or require remote access,” continues Hayes. “One of these tools is Microsoft’s SharePoint, which is a Web application that organizes and shares files. Basically, SharePoint integrates the Internet, contact management, and document management. For a small monthly fee per user, companies of all sizes can now afford to utilize this tool. SharePoint has a Microsoft Office-like interface, and it’s integrated with the Office suite. The Web tools are designed for non-technical users. Microsoft offers a cloud-service edition as part of its Office-365 platform.
“To accommodate the growth in this area, we just hired Michael Piester to manage our SharePoint team. He has experience designing and implementing SharePoint sites including ISO and legislative-compliant requirements, escalation workflows, dashboard reports to analyze ROI and sales, document libraries, and better communications through blogs and message boards,” Hayes adds.
SharePoint is not the only area experiencing growth at ICS. “We are growing in all areas of the business,” says Kevin Blake, the company president and the other co-owner. “IT-managed services, telephony, cybersecurity, business continuity and disaster recovery, helpdesk services, virtualization services, IP security cameras, and access control are all growing from increased customer demand. Just in the last year and a half, we expanded our office space here in Endicott by 1,500 square feet and in another few weeks we will add another 1,000 [square feet].”
Blake and two partners own the 40,000-square-foot building at 111 Grant Ave. in Endicott that houses ICS.
Growth and acquisitions
ICS has generated annual, compounded growth of 25 percent since Blake and Hayes bought the company in 2005. (ICS was founded in 1986 as Integrated Computer Solutions.) “We saw opportunities to grow this company by being proactive, not reactive. Instead of waiting for a crisis, we introduced a menu of support plans. ICS had four employees in 2005; by 2010 we employed 27, and today the number is 66, of whom 55 are IT consultants. Our growth has been both organic and through acquisitions. In 2010, we bought Microtech in Syracuse, which gave us a second location. ICS is currently in negotiations for two more acquisitions which would give us additional office locations to serve 750 clients. Our territory has expanded from the Greater Binghamton area to Elmira, Rochester, Syracuse, the Mohawk Valley, and [the Northern Tier of] Pennsylvania.” Hayes adds: “We also have followed our customers to Buffalo, the mid-Hudson Valley, and even Ireland.” The Central New York Business Journalestimates that the company generates $10 million to $12 million in annual revenue.
“The only thing that hinders our growth is finding qualified employees,” notes Hayes. “I’m not as concerned about finding tech-savvy people as finding those who have warm-fuzzy qualities. I need employees with the intangibles, who can interact with our customers. We can help to groom them, but they have to come with the right attitude and communication skills.”
Blake and Hayes see a bright future for ICS. “The industry is moving toward business intelligence, observes Hayes. “The back end of SharePoint is a database, and now customers want to tie the databases together. They understand that they have a tremendous amount of information at their fingertips to guide their businesses and to help them grow. We’re dealing with the early adopters of the cloud, and there is still a lot of educating required, but the trend is clear: business is moving to the cloud and that’s good for our growth. In a way, ICS is recession proof. In bad times, like the recent recession, customers outsource their IT; in good times, they buy our services. The cloud gives them peace of mind and the ability to collaborate.”
Blake is a 1992 Maine–Endwell High School graduate who started working at ComputerLand in 1990. He graduated from SUNY Oswego in 1996 with a degree in business. He started working full time at ICS two days after graduating college. Hayes graduated from Alexandria Central High School in Jefferson County and met Blake at SUNY Oswego. He also graduated in 1996, with a degree in political science and history, and started his career at Eastman Kodak in Rochester. Hayes joined ICS in 1999. In its Aug. 8, 2014, edition, The Central New York Business Journal ranked ICS Solutions Group first among Central New York computer/IT consultant companies. The ranking was based on the number of IT consultants on staff.
Contact Poltenson at npoltenson@cnybj.com
Lockheed Martin: Decision to acquire Systems Made Simple wasn’t hard
SALINA — Lockheed Martin Corp. (NYSE: LMT) had partnered with Systems Made Simple in the past and was “well aware” of the company and its strengths, expertise, and employees before making the deal to acquire it. Salina–based Systems Made Simple, which provides health-information technology (IT) products to the federal government, is “no stranger” to firms
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SALINA — Lockheed Martin Corp. (NYSE: LMT) had partnered with Systems Made Simple in the past and was “well aware” of the company and its strengths, expertise, and employees before making the deal to acquire it.
Salina–based Systems Made Simple, which provides health-information technology (IT) products to the federal government, is “no stranger” to firms that compete in that sector, says Horace Blackman, Lockheed Martin’s vice president for health & life sciences.
Both Blackman and Al Nardslico, chairman and president of Systems Made Simple, spoke with the Business Journal News Network in a conference call on Nov. 3.
“They’re no stranger to us and have not been strangers to us for quite some time,” says Blackman, who spoke on the conference call from Rockville, Md.
Bethesda, Md.–based Lockheed Martin, which has a plant in Salina employing about 1,600 people, announced on Oct. 30 its agreement to acquire Systems Made Simple.
Lockheed didn’t disclose any financial terms of the deal in its news release.
The discussions on a possible acquisition “began to intensify” in the last few months, says Blackman.
“It was not a hard decision to come to that got us to this point,” he adds.
Systems Made Simple is headquartered at 149 Northern Concourse in Salina. It employs about 25 people at its offices in Salina, says Nardslico.
They’re among a total of more than 500 employees in offices located in McLean and Charlottesville, Va.; Salt Lake City, Utah; Tampa, Fla.; and Austin, Texas.
“The opportunity to join a world-class engineering firm like Lockheed Martin was really something that was very exciting to me,” says Nardslico, who spoke on the conference call from Myrtle Beach, S.C.
Lockheed Martin expects the acquisition, which is subject to customary closing conditions, to close within 30 days.
Once the transaction closes, Systems Made Simple will be part of Lockheed’s information systems & global solutions business area. Lockheed’s current Salina plant is in its mission systems & training division.
“Systems Made Simple will exist within Lockheed Martin as Systems Made Simple, a Lockheed Martin company,” says Blackman.
With its operations as a wholly owned subsidiary of Lockheed Martin, Nardslico plans to remain with the firm as president of Systems Made Simple, he says.
What the acquisition will do
Lockheed Martin believes the acquisition will broaden its capabilities across the spectrum of health IT operations, including development of sophisticated IT architecture for complex organizations to delivering custom applications designed to increase patient access and improve the overall patient experience, the company said in its news release.
It will also expand Lockheed Martin’s relationship with the U.S. Department of Veterans Affairs (VA), for which it provides IT-enabled disability case-management services for veterans.
Technology is “rapidly transforming” the health-care landscape in the U.S. and is “critical” to reducing costs and improving patient care, Marillyn Hewson, chairman, president, and CEO of Lockheed Martin, said in the Oct. 30 news release.
“Systems Made Simple’s capabilities in engineering health-technology solutions are a natural extension of our existing health IT portfolio, and will enable us to deliver a broader portfolio of capabilities to meet our healthcare customers’ current and future needs,” said Hewson.
Systems Made Simple says it delivers technology and service products to “improve, increase, enable and ensure the secure exchange and interoperability of information between patients, providers and payers.”
The company performs “significant” work with the VA in areas such as health-data analytics, data-center operation, health-data management, and health-system interoperability.
Systems Made Simple operates in the “fastest growing” part of the U.S. federal IT budget and was selected for the Transformation Twenty-One Total Technology (T4) contract that supports the VA’s IT modernization initiatives, a contract with which Lockheed Martin is not currently involved.
The local firm’s performance on the T4 was “certainly a factor” in Lockheed Martin’s pursuit of the acquisition, says Blackman.
“This is a company that has a history of performing exceptionally well in the work that they do,” he adds.
Contact Reinhardt at ereinhardt@cnybj.com

Pyramid, Racer Trust seek buyer, tenants for former GM property
SALINA — The Detroit, Mich.–based organization that owns the Salina Industrial Powerpark is working with a local real-estate firm to pursue additional tenants for the facility and eventually sell the property. The Salina Industrial Powerpark at 1 General Motors Drive in Salina is a former General Motors (GM) auto-parts plant that GM shuttered in 1993.
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SALINA — The Detroit, Mich.–based organization that owns the Salina Industrial Powerpark is working with a local real-estate firm to pursue additional tenants for the facility and eventually sell the property.
The Salina Industrial Powerpark at 1 General Motors Drive in Salina is a former General Motors (GM) auto-parts plant that GM shuttered in 1993.
Racer Trust, which purchased the facility in 2011 following the GM bankruptcy, has been working with Cushman & Wakefield / Pyramid Brokerage Company to market the property.
Racer is an acronym for Revitalizing Auto Communities Environmental Response Trust.
The organizations held an open house at the 827,000-square-foot property on Oct. 30.
The purpose of the open house is “two fold,” says Patricia Spitzley, deputy redevelopment manager for Racer Trust.
The organization is seeking a buyer, but it is also hoping to secure additional tenants for the Powerpark.
“This is what we consider an income-generating piece of property, and so while we are interested in ultimately selling it, our immediate focus is filling it up,” says Spitzley.
She spoke with the Business Journal News Network at the open house.
The facility is about “62 percent” full as of Oct. 30, with 15 businesses leasing space in the 827,000-square-foot plant, says Spitzley.
The current occupants of the building include: Bitzer Scroll Inc., a manufacturer of air-conditioning and refrigeration compressors; Carpenter Industries, Inc., which performs abrasive blasting, welding, and fabrications; Syracuse Glass Company, which manufactures architectural and tempered glass building products; and Roth Global Plastics, a plastics blow-molding manufacturing facility.
The right buyer has to meet certain criteria that Racer establishes, including purchase price, job creation, support of the community, the willingness to allow Racer to fulfill its environmental responsibilities on the property, says Spitzley.
Any potential buyers are subject to a background check to make sure their intentions are to move the property forward.
“They’re not in it to come here, buy the property, tear it down,” she says.
Property history
General Motors began operations at the Salina Industrial Powerpark site in 1952. The site was used for the manufacture of metal automotive components and plastic auto parts. GM closed the facility, called the Inland Fisher Guide plant, in 1993.
In his remarks at the open house, John Clark, president and principal broker of Pyramid Brokerage Company, noted that GM retained Pyramid Brokerage when it announced the closing of the Inland Fisher Guide plant.
GM sought Pyramid’s help in the planning decisions and implementing the next steps with the site, said Clark.
One of the options was to demolish the building and leave the site vacant.
“The other was to renovate, subdivide, and lease the facility to numerous tenants,” he said.
Transforming the facility into the Salina Industrial Powerpark would require capital improvements. General Motors started the project, but it stalled with the firm’s bankruptcy, said Clark.
“The Racer Trust has taken over and brought this project to a whole new level investing the capital to make the necessary improvements,” he says.
Contact Reinhardt at ereinhardt@cnybj.com
Delta Engineers acquires Maryland architectural firm
ENDWELL — Delta Engineers, Architects & Land Surveyors, P.C. announced on Nov. 3 it has acquired OKKS Studios, Inc., based in Chevy Chase, Md. The deal was a stock swap based on independent valuations of the two firms. The principals of the combined firm operate now as OKKS Studios, a subsidiary of Delta Engineers, Architects
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ENDWELL — Delta Engineers, Architects & Land Surveyors, P.C. announced on Nov. 3 it has acquired OKKS Studios, Inc., based in Chevy Chase, Md.
The deal was a stock swap based on independent valuations of the two firms. The principals of the combined firm operate now as OKKS Studios, a subsidiary of Delta Engineers, Architects & Land Surveyors, which also has an office in Vernon (Oneida County) and headquarters at 860 Hooper Road in Endwell (Broome County).
“We met the OKKS principals, Tom Sachs and Greg Knoop, 6 to 8 months ago through mutual friends,” says Anthony Paniccia, Delta’s president and CEO. “It became apparent at the outset that our two firms were a good fit, because OKKS was largely an architectural firm outsourcing 60 percent of its work to engineering firms and we are mostly an engineering firm. Of the 13 employees at OKKS, seven are architects and four are junior architects, which complements the three architects on Delta’s staff.”
OKKS, which was founded in 1970 as Oudens + Knoop Architects, P.C., leases 5,000 square feet in a single location in Chevy Chase. The firm specializes in the fields of health care, government and public-sector facilities, higher education, technology companies, security planning, and “class-A” office buildings, working across the U.S. and in more than 80 countries worldwide. Sachs and Knoop will continue to manage the Maryland office.
Following the acquisition, Delta employs 118 people total. That’s up more than three-fold since 2008, according to an article in the Oct. 25, 2013 issue of The Central New York Business Journal. In that story, Paniccia said Delta’s goal was to grow employment, first to 150 people and eventually 200 employees, through both organic growth and acquisitions.
Delta, founded in 1976, occupies 38,000 square feet at the Endwell headquarters, and another 6,000 square feet in Vernon. The Business Journal estimates the annual revenue of the combined firm at $13 million to $15 million.
Delta (www.deltaengineers.com) serves the building facilities, precast concrete, transportation, land surveying, and environmental markets.
Paniccia received his bachelor’s degree in electrical engineering from Clarkson University and his law degree from the Lincoln Law School of San Jose. He is registered as a professional engineer in 43 states and has worked at Delta Engineers, Architects & Land Surveyors for 19 years.
Contact Poltenson at npoltenson@cnybj.com
Bell Tenant Champions rebrands with new compensation model
SYRACUSE — Bell Tenant Champions, a Syracuse–based firm that represents tenants and buyers in real-estate negotiations, has rebranded and changed the way it earns client compensation based on the amount it helps a client save in lease or purchase negotiations. Bell Tenant Champions was formerly known as The Bell Group. It operates on the fourth
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SYRACUSE — Bell Tenant Champions, a Syracuse–based firm that represents tenants and buyers in real-estate negotiations, has rebranded and changed the way it earns client compensation based on the amount it helps a client save in lease or purchase negotiations.
Bell Tenant Champions was formerly known as The Bell Group. It operates on the fourth floor of the Bentley Settle Building at 120 Walton St. in Syracuse’s Armory Square.
The firm rebranded during the summer with a name that it believes represents its role in negotiations.
“We believe we’re trying to champion the deal for the client and help them maximize what their real-estate dollar will buy them in the marketplace,” says Mark Bethmann, CEO of Bell Tenant Champions.
At the same time, the company is working under a different compensation model.
Bethmann explained it to the Business Journal News Network in an interview on Oct. 31.
The model
The real-estate tenant representation brokerage model has been “broken or misaligned,” Bethmann contends.
He’s felt that way “for several years.”
In the brokerage industry, a landlord has a listing agent and a tenant has a tenant-representation agent and the two generally split a commission, Bethmann explains.
Under this system, the landlord and his broker are aligned because they’re trying to secure the highest rent or purchase price possible from the buyer or the tenant.
But Bethmann sees a “misalignment” with the tenant representative.
The tenant hires a tenant broker to reduce the cost and negotiate the best deal possible.
“Yet they’re paid a commission, which means the more the tenant pays in rent, or the more they pay on the purchase of a building, the bigger the commission that the landlord broker and the tenant broker split,” says Bethmann.
Bell Tenant Champions believes a tenant-landlord negotiation should involve a “complete separation in commissions.”
The program that Bethmann’s firm has set up involves collecting a commission that’s tied to the tenant’s savings.
“We would be financially compensated based on our ability to help our clients save money, not spend money,” says Bethmann.
He says tenant clients had told him they didn’t see what financial incentive he had to reduce their costs if his commission was tied to the amount they agreed to spend.
Now, Bethmann sees his firm’s new compensation system as in “alignment with our clients.”
The firm’s website refers to it as the “Bell success sharing model.”
The website outlines what it calls the “typical CRE [commercial real estate] model” in which the broker’s compensation, calculated as a percentage of the total deal, is higher if the deal’s dollar value is higher.
In the Bell model, the firm bases its compensation on the “value we create.”
“Quite simply, the more we save you, the more we earn,” the website says.
New York City–based Ayni Brigade, a marketing and advertising services firm, helped Bell develop the new name and worked on its website.
With this new model, Bell Tenant Champions has picked up four new accounts in the last 90 days, Bethmann says. He declined to name them.
Bell Tenant Champions employs nine people, including eight full-time workers. The firm plans to add more employees in 2015, Bethmann says. “We will grow.”
The company operates in a 3,800-square-foot space on the fourth floor of the Bentley Settle Building. Bell Tenant Champions leases its space from Brookline Development.
William Bell founded the firm in 1986 as William T. Bell & Associates. Bethmann acquired the firm in 2001 and renamed it The Bell Group. The founder retired in September 2013.
Contact Reinhardt at ereinhardt@cnybj.com
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