Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.

Siena poll: Katko has 10-point lead over Maffei in local congressional race
SYRACUSE, N.Y. — Challenger John Katko (R–Camillus) has a 10-point lead over the incumbent U.S. Representative Daniel Maffei (D–DeWitt) in the hotly contested race for

People news: Vanek elected to NYS Tourism Industry Association board
AUBURN, N.Y. — Meg Vanek, executive director of the Cayuga County Office of Tourism in Auburn, has been elected to the board of directors of

Toys R Us Express opens at Destiny USA, other retailers move stores
SYRACUSE, N.Y. — As the holiday shopping season rapidly approaches, Destiny USA has announced a new store, some store relocations, and an update on one
Cuomo announces funding for bicycle and pedestrian projects
Bicycle and pedestrian projects in Central New York, the Mohawk Valley, the Southern Tier, and the North Country are among those that will benefit from
Herkimer County town to use federal funding for bridge repair
STARK, N.Y. — The Herkimer County town of Stark will use a federal grant of more than $669,000 to upgrade and repair the “flood-prone” Route

Cosmetics retailer Flormar to open Syracuse store later this year
SYRACUSE, N.Y. — Flormar, an international makeup retailer, will open a store at Destiny USA before the end of the year. The store will open

New York state egg production rises 9 percent in September
New York state farms produced 114 million eggs in September, up 9 percent from the year-ago period, according to a report from the USDA’s New

All Aboard the Adirondack Scenic Railroad
UTICA — This year, for my birthday, I rode the Adirondack Scenic Railroad. It was the first time I’ve had the opportunity to ride a train since I was kid, even though I’m surrounded by trains every day. The Business Journal News Network’s office is located in the former OnTrack station in Armory Square in
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
UTICA — This year, for my birthday, I rode the Adirondack Scenic Railroad. It was the first time I’ve had the opportunity to ride a train since I was kid, even though I’m surrounded by trains every day. The Business Journal News Network’s office is located in the former OnTrack station in Armory Square in downtown Syracuse, and the same rail line runs behind my house in Jamesville.
On a fall morning in September, my friend, Jill, and I ventured out to Utica’s Union Station for the Fall Foliage Train excursion that goes from Utica to Thendara with a four-hour layover in Old Forge. A round-trip ticket for this excursion costs $37.50 per adult, but Jill and I scored a Groupon deal for $36 for two round-trip tickets.
When we arrived at the station at 9 a.m., volunteers were already herding the 400 passengers onto the train. As I’m settling into a window seat in car 3211, a volunteer named Mike walks through the car to collect tickets from the passengers. A lady across the aisle from us asks him when we’ll be off.
“All I can tell you is when it starts to roll, that’s when we’re going,” says Mike.
Shortly after that, we were rolling. Once we were moving, the volunteer car hosts encouraged the passengers to explore the train. This adventure was short-lived for me, because as soon as I stood up, motion sickness kicked in.
The ride was not a total loss though. While sipping a Ginger Ale that Jill graciously bought for me, I watched the scenery go by. With the “Mileposts and Points of Interest” guide that came with our tickets, I was able to spot the Erie Canal, Otter Lake, and more. Not to mention the endless number of deer I saw hanging out in people’s yards like they were waiting for their daily treats.
Two hours later, we arrived at the Thendara station, which is about a mile south of Old Forge. As we departed the train to catch the shuttle to Old Forge, the car hosts instructed us to return by 4 p.m. so that we could make the departure time of 4:45.
Ride the line
The Adirondack Scenic Railroad is part of the historic rail corridor that was constructed in 1892 and the first to go through the Adirondack region. While operated by the Adirondack Railway Preservation Society (ARPS), a 501(c)(3) nonprofit organization, New York State owns the 118-mile, Remsen-Lake Placid rail corridor, and the Departments of Environmental Conservation and Transportation jointly administer it.
ARPS performs maintenance work on the corridor and leases the track from April to December for train-ride excursions. From January to April, the NYS Snowmobile Association leases the corridor.
The rail corridor started to decline in the 1950s and 60s, but was briefly restored for the 1980 Winter Olympics in Lake Placid. After that, it laid dormant for more than a decade until a band of rail enthusiasts came together in 1992 and proposed operating a short rail line. Now 22 years later, 68 miles of the 118-mile track have been restored, and the Adirondack Scenic Railroad carries more than 70,000 passengers annually.
“We’re the largest tourist attraction in the county [of Oneida] after the casino,” says Bethan Mahar, executive director of ARPS.
Only about 5 percent to 8 percent of visitors come from within Oneida County. Last year, passengers traveled from 49 states and six countries to ride the Adirondack Scenic Railroad. Ridership has increased 35 percent in the past five years, says Mahar.
The railroad partners with local businesses and brings visitors to these otherwise remote areas along the corridor. The train is “very significant to the local businesses who see an influx of people spending money,” says Mahar.
ARPS starts running occasional trains in April, and then in July begins operating five days a week, Wednesday through Sunday. From August to December, the trips generally run at full capacity, carrying a max of 420 passengers, largely due to the themed excursions during those months, such as the Fall Foliage, Family Halloween Train, and the ever-popular Polar Express.
ARPS owns five locomotives and leases three locomotives. It also owns 23 passenger cars, two of which will be repaired during the upcoming slow season, the first quarter of next year. Each repaired car will add 120 seats.
All the trips are staffed by volunteers who assume the roles of car hosts, “trainmen,” conductors, engineers, and café and gift shop workers. Volunteers donate 15,000 to 20,000 hours of service each year, says Mahar, who steps into the role of “trainman” occasionally.
Mahar came on board three-and-a-half years ago as the Utica station manager. A year in, she became the executive director of ARPS. “It’s been a fun ride,” says Mahar.
Hailing from Sherrill, Mahar received a bachelor’s degree in anthropology from SUNY Geneseo, with a concentration in archeology and historic preservation. She also took a few master’s level courses from a Mexican university in Yucatan while working on a sustainable-tourism project.
ARPS operates from the second floor of the Bagg’s Square Café at 421 Broad St. in Utica, about two blocks from the train station. It has nine full-time employees, including mechanics and the Utica station manager. Since the Thendara, Lake Placid, and Saranac Lake stations don’t operate during the winter months, those managers are included in the 15 part-time employee count. Mahar says the railroad hires more part-time help during Polar Express season.
ARPS generates $1.3 million of its $2 million budget from ticket sales. The rest of the revenue comes from donations, memberships, and repair work the nonprofit does for others.
By the end of this year, Mahar says the nonprofit’s bank debt and payables will be paid, making it almost debt free. “We will still have one small loan from a board member, but in a nutshell, yes [we’ll be debt-free],” says Mahar.
Rails vs. Trails
The Adirondack Scenic Railroad operates between Utica and Big Moose, and from Saranac Lake to Lake Placid. The plan is to restore the rest of the rail so the railroad can offer trips from Utica to Lake Placid. But what to do with the remaining out-of-service rail between Big Moose and Saranac Lake sparks debate.
Some people believe that restoring the line will boost tourism; other groups believe the entire 118 miles of rail should be torn up and replaced with trails.
The rail corridor, which is on the National and State Historic Registers, was built before much of the Adirondacks had been declared “Forever Wild,” meaning it can’t be developed anymore. Mahar says that the train is the only thing that goes through some of those inaccessible areas now. The railroad also has a $5.5 million economic impact on the area and connects communities in and out of the travel corridor.
ARPS supports a rail-and-trail system, with trails running alongside the rail corridor. In the areas where that isn’t feasible, she says the plan would be to create other paths that would join with the corridor. “Our volunteers have already mapped out existing trails from Tupper Lake to Saranac Lake,” says Mahar.
In July, the state DEC and DOT announced that they would allow restoration of the rail corridor from Big Moose to Tupper Lake. Mahar says ARPS will be facilitating and overseeing the restoration work, although no formal dates or a financial commitment have been made, as of press time.
More public hearings will be scheduled to determine the best use of the line from Tupper Lake to Lake Placid.
In the meantime, Mahar says ARPS will continue to “fight the battle to preserve the corridor and keep it functioning.”
All aboard
At 4:30 p.m., we’re loaded onto the train in Thendara for the return trip. Lois, a car host, walks down the aisle of the car, hushes the group, and then asks, “Is everyone on this train going to Utica, New York?” Pause. “If you’re not, then you are now. Unless you let us know right now.” Silence. Looks like we we’re all going to Utica.
Contact Collins at ncollins@tmvbj.com
——————————————————————————————————
Adirondack Railway Preservation Society (ARPS)
421 Board St., Suite 7
Utica, NY 13501
Phone: (800) 819-2291
adirondackrr.com
Key Staff
Executive DirectorBethan Mahar
Executive Director’s pay from 2012 IRS Form 990$37,151
Board of directors (Officers)
President
Bill Branson, retired executive, RBS Wealth Management, A.G. Edwards & Sons
Vice President
Al Heywood, retired teacher, Heywood’s Greenhouses, Remsen Development Corp.
Treasurer
Michele Devendorf, retired executive, Sears-Roebuck
Secretary
David Link, Bluebar Oil, CSX, MA&N, Oswego Midland
Executive Committee Member
Wayne Tucker, retired executive, Kimberly Computers
Board of Directors
Bill Branson, retired executive, RBS Wealth Management, A.G. Edwards & Sons
Michele Devendorf, retired executive, Sears-Roebuck
Allen Dunham, North Country REDC, Adirondack North Country Association (ANCA)
Jim Ellis, retired high school principal, ANCA
Gene Falvo, Falvo Manufacturing, Oneida County Tourism, Mohawk Valley REDC
Al Gorney, private consulting
Al Heywood, retired teacher, Heywood’s Greenhouses, Remsen Development Corp.
Ed Kennedy, retired executive, IBM
Frank Kobliski, executive director CENTRO
David Link, Bluebar Oil, CSX, MA&N, Oswego Midland
Dan Mecklenburg, Trails and Rails Action Committee
Paul Miles, engineer, CSX
Garry Savage, retired, NYS&W RR
Sandra Strader, retired Tupper Lake mayor, the Wild Center
David Tomberlin, Well Dressed Foods, ANCA
Wayne Tucker, retired executive, Kimberly Computers
Paul Yonge, retired NYS employee
Mission
Preservation of the Adirondack railway. The organization’s purpose is promoting, participating in, and contributing to the rehabilitation, maintenance, and operation of the Adirondack Travel Corridor.
Programs & Services
Train-ride excursions, track rehabilitation and restoration, educational programs with school groups, group charters for assisted-living facilities and passengers with special needs, programs for disabled vets, track restoration and rehabilitation, vegetation management and a variety of special events ranging from holiday excursions (Easter Bunny Express, Family Halloween Trains, The Polar Express) to history trains, shopping trains, and wine and beer tasting trains.
Recent Organizational Highlights
2014 recipient of the Adirondack Architectural Heritage Awards for its rail-corridor restoration from Remsen to Lake Placid, and the Thendara Station.
Financial Data
Revenue Sources
Contributions & Grants: $1,250,207
Program Services: $1,012,885
Investment Income: 0
Other: $29,609
Total Revenue: $2,292,701
Expenditures
Salaries & Employee Benefits: $397,532
Other: $1,976,739
Total Expenses: $2,374,271
Deficit for the Year: -$81,570

From burgers to banking to buildings: Tom Clark, the intrepid entrepreneur
— Ray Kroc was a piano player, paper-cup salesman, and a multi-mixer salesman. In 1954, he received an unusually large order for eight multi-mixers from a restaurant in San Bernardino, Calif. run by the McDonald brothers. The business model was simple: offer a few items on the menu, such as 15-cent burgers, fries, and milkshakes,
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
— Ray Kroc was a piano player, paper-cup salesman, and a multi-mixer salesman. In 1954, he received an unusually large order for eight multi-mixers from a restaurant in San Bernardino, Calif. run by the McDonald brothers. The business model was simple: offer a few items on the menu, such as 15-cent burgers, fries, and milkshakes, and focus on the quality. A year later, Kroc founded the McDonald’s Corp., which today is the world’s leading, global food-service retailer with more than 35,000 locations in more than 100 countries serving 70 million customers daily.
Burgers
Harold (Tom) Clark, Jr. bought into the idea back in 1978, when he called Kroc to purchase some franchises. A Utica–area resident, Clark founded Mac-Clark Restaurants, Inc. in the same year. Nearly 36 years later, he owns 17 franchises scattered across four counties surrounding Utica. “The restaurant business employs 963 people,” says the company president. “I enjoy it as much today as when I started the business, because I deal with young people who keep me young. For many [of my employees], this is their first job … Everybody goes through computer-based training, and 98 percent of my management come from the ranks. The idea that McDonald’s employees just flip hamburgers and get substandard wages is false. My average hourly pay-rate is $10 an hour, managers earn up to $50,000 plus benefits, and supervisors earn more than that.” Clark spends 90 percent of his time as a franchise operator. He says his annual revenue tops $40 million.
Banking
In 1990, the Utica native was unhappy with his investment returns. Rather than change investment advisors, Clark bought the Saranac Lake Federal Savings & Loan Association, an enterprise that had $29 million in assets. “I wanted to control my investments,” states the inveterate entrepreneur with a smile, “and recapitalized the bank as a stock corporation.” The new bank operated as a federal savings bank until 1995 when it was re-chartered as a national bank with a new name — Adirondack Bank, N.A. To position the bank for the future, he converted it to a state charter in 2003.
“When Gary Kavney joined the bank as president and CEO,” continues Clark, “assets had grown to $100 million. When Gary retired in 2013, we posted more than $500 million. By the end of the year, the number will reach $700 million. It’s been a good time for the bank to attract deposits with all of the confusion among consumers because of the flurry of bank-merger activity … From just a few branches in Saranac Lake and Lake Placid, the bank now has 19 offices and more than 200 employees.” Adirondack Financial Services Corp. with its four divisions — investment-advisory services, qualified-retirement plans, employee benefits, and financial planning — is an affiliate of the bank, and Adirondack Insurance Services, Inc. is a wholly owned subsidiary.
Adirondack Bank generated about $25 million in total income according to its 2013 year-end, consolidated financial statement. The bank holds 1.81 percent of the 16-county Central New York region’s deposits, according to CNYBJ Research and FDIC data as of June 30, 2014, the latest available.
Clark says he does not get involved in the day-to-day running of the bank.
Buildings
What started with burgers and banks now includes buildings. Clark set up Adron Building LLC, a real-estate company that includes the Adirondack Bank building as well as the adjoining property, which formerly housed Harza Engineering Company. The two properties contain 250,000 square feet of space on Genesee Street in downtown Utica. Adron Building LLC also holds apartments and other miscellaneous real estate.
While Clark at age 71 is still looking for more McDonald’s franchise opportunities, he has already begun addressing the question of corporate succession. His oldest son, H. T. Clark III, created an LLC and now owns and operates three of the 17 franchises. The middle son, Robert, is the executive vice president of retail banking as well as the director of marketing at Adirondack Bank and works closely with the bank’s current president and CEO, Rocco F, Arcuri, Sr. The youngest son, Christopher, is just two years out of college and working in New York City at a hedge fund.
Clark’s road to success has had its challenges. “Competition is brutal [in the franchise business],” declares the president of Mac-Clark from his office on the 15th floor of the Adirondack Bank building. “The original concept of a limited menu has changed with consumers’ tastes as they want more … [healthful] choices. It’s not just Big Macs anymore; now we offer yogurt, apple slices, and salads. To compete with Tim Hortons and Dunkin’ Donuts, McDonald’s offers breakfast with not only hotcakes and Egg McMuffins but also sausage burritos and fruit-and-maple oatmeal. At lunch and dinner, we face competition from Wendy’s, Burger King, and Subway, to mention a few, who frankly are giving everything away. The margins in this business are really tight.”
Over the years, Clark has shared his financial success with the community. He is a $5 million donor to his alma mater, Utica College, and has been generous to area children’s causes, such as the House of the Good Shepherd, Utica Rescue Mission, Upstate Cerebral Palsy, and Camp Ronald McDonald, a day-camp facility on a 100-acre tract.
“I saw the needs of the community in 1965 when I was only 22,” stresses Clark. “I was an executive on loan from my first employer, Marine Midland Bank, working with a nonprofit organization to help the less fortunate. I learned then how important it was to give back to the community.”
Clark is very optimistic about the future of the Mohawk Valley. “Business in the area is growing,” he opines. “We’re just beginning to see the impact of nanotechnology on the region, which I think will be huge. I’m also encouraged by how well our political leaders work together, regardless of party affiliation. There really is light at the end of the tunnel.”
Clark graduated from Utica College in 1965. Right out of school, he went to work for Marine Midland Bank. Over his nine-year tenure, the young executive progressed from training to commercial loans, credit cards, and finally industrial finance. Bankers Trust hired him in 1974 to be the area’s regional president and expand the operation into the Syracuse market. “By 1978, I decided to buy a business in the area,” affirms Clark. “While at the bank, I had financed a McDonald’s operator at the time that the first franchise opened in the area. I knew the financials of running the business, and I knew the franchise was for sale. The rest is history.” When not engrossed in the business, the septuagenarian heads for the family retreat at Big Moose Lake, which his grandfather bought in 1936. There is little time anymore for avocations with McDonald’s open 24/7 and seven grandchildren to attend to. Clark is married to New York State Supreme Court Justice Bernadette T. Clark.
Contact Poltenson at npoltenson@cnybj.com
Rome Memorial pursues other options for affiliation after suspending talks with Bassett
ROME — Rome Memorial Hospital (RMH) is pursuing new options for a potential affiliation partner after suspending its talks with Bassett Medical Center on Oct. 14. Bassett Medical Center is part of the Bassett Healthcare Network, which is based in Cooperstown. But as of Oct. 20, RMH hadn’t started new discussions with any other organization.
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
Click here to purchase a paywall bypass link for this article.
ROME — Rome Memorial Hospital (RMH) is pursuing new options for a potential affiliation partner after suspending its talks with Bassett Medical Center on Oct. 14.
Bassett Medical Center is part of the Bassett Healthcare Network, which is based in Cooperstown.
But as of Oct. 20, RMH hadn’t started new discussions with any other organization.
“As of this time, Rome Memorial Hospital has not entered into discussions about affiliation with any other health-care organization,” Basil Ariglio, president and CEO of Rome Memorial, said in a statement to the Business Journal News Network (BJNN).
Ariglio provided his statement in response to a BJNN inquiry for additional information about the RMH-Bassett situation.
In its email inquiry, BJNN asked for an example of why RMH didn’t feel comfortable with an affiliation agreement, considering Ariglio had described the two facilities as “like-minded organizations” in many respects in a news release he distributed on Oct. 14.
“Confidentiality requirements in the non-binding Letter of Intent signed by Rome Memorial Hospital and Bassett Healthcare dictate that we cannot discuss the particular reasons for our decision not to move forward with the affiliation,” said Ariglio.
Dr. Vance Brown, president and CEO of Bassett Medical Center, reacted to the development in a statement that Bassett released Oct. 16.
“Bassett has been sincere in its efforts to pursue an affiliation that I believe would have potentially benefited both organizations as well as our patients. It is the kind of strategic alliance that has the potential to make the most of the changes occurring under health reform in order to meet the needs of the population we serve.
Toward that end, Bassett remains open to discussing opportunities in Oneida County,” said Brown.
Moving on
The board voted “unanimously” to approve the recommendation that Ariglio made in consultation with the hospital’s consultant and legal counsel, Dr. Chester Patrick, chairman of the RMH board, said.
The decision follows “several months of careful evaluation,” RMH said in the news release.
RMH’s board three years ago made the decision to explore opportunities to collaborate with other organizations to prepare for the “changing healthcare environment,” the release noted.
The board developed specific community objectives based upon feedback from a cross-section of members of the medical staff and community members and initiated discussions with several organizations.
RMH in November 2013 signed a nonbinding letter of intent to explore an affiliation relationship with Bassett.
“We share a commitment to clinical quality and recognize the imperative to deliver efficient and cost-effective care,” Ariglio said in the Oct. 14 news release. “However, as we moved through the process, it became apparent that the relationship with Bassett would not satisfy the objectives of the hospital or the people we serve.”
Ariglio also emphasized that the hospital’s effort to find an affiliation partner will continue.
“We will renew discussions with other organizations, who have continued to express interest in collaborating with us to strengthen the continuum of care for our community,” Ariglio said.
Even though RMH decided to move in a different direction, “the imperative to collaborate hasn’t changed,” he explained.
“We need to be prepared for new risk-based contracts that reward providers for keeping our patients healthy. The only way to improve our population’s health is through better care coordination, built upon a strong foundation of primary and preventative care. The process we went through over the last 11 months has been invaluable and will assist the hospital as we evaluate future affiliation opportunities,” Ariglio stated.
In its inquiry, BJNN also asked Ariglio to explain how the process with Bassett will help RMH moving forward.
“Working through an affiliation process with another health-care organization allows you to see how that organization can help your hospital and community in ways you may not have realized initially. Moving forward, we will look for those benefits we identified during our discussions with Bassett as we begin discussions with other potential affiliations,” he said.
He also noted that RMH has “no set timeline” to complete a potential affiliation agreement with another health-care organization.
Contact Reinhardt at ereinhardt@cnybj.com
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.