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Owego custom-kitchen business to formally open showroom on Thursday
OWEGO — The Tioga County Chamber of Commerce will host a ribbon-cutting event for Lookin’ Sharp – The Custom Kitchen and Bath Gallery of Curtis
NYSEG to give Binghamton University $400K in economic-development grants Wednesday
VESTAL — Binghamton University on Wednesday will formally accept $400,000 in grants from the power company NYSEG to offset electric-infrastructure costs for two major on-campus
Scotsman names Kasper associate publisher
SYRACUSE — The Scotsman Media Group has announced Courtney Rae Kasper as associate publisher of editorial as well as editor-in-chief of Today’s CNY Woman.
Community Bank to build branch in DeWitt
DeWITT — Community Bank System, Inc. (NYSE: CBU) today announced plans to build a 4,600-square-foot branch office in the town of DeWitt. The company’s banking
New York’s initial jobless claims fall 10 percent
The number of people applying for new unemployment-insurance benefits in New York state in the week ending Feb. 8 declined by 2,721, or more than
ESD approves loan for downtown hotel, funding for Hastings raceway
Empire State Development (ESD) on Thursday approved a loan related to the construction of the Inns at Armory Square in downtown Syracuse. ESD also approved
Schumer wants to restore and extend railway tax credit
COOPERSTOWN — A proposed federal law would restore and extend a tax credit for short-line railroads to target infrastructure-improvement projects through 2016. U.S. Senator Charles Schumer (D–N.Y.) launched his push for the “Short Line Railroad Rehabilitation and Investment Act” during a Thursday appearance at the New York Susquehanna and Western Railway (NYSW) headquarters in Cooperstown.
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COOPERSTOWN — A proposed federal law would restore and extend a tax credit for short-line railroads to target infrastructure-improvement projects through 2016.
U.S. Senator Charles Schumer (D–N.Y.) launched his push for the “Short Line Railroad Rehabilitation and Investment Act” during a Thursday appearance at the New York Susquehanna and Western Railway (NYSW) headquarters in Cooperstown.
The short-line rail tax credit expired on Jan. 1, but Schumer’s bill would restore the credit and extend it through 2016.
The tax credit is valued at 50 percent of the cost of track maintenance and improvements, up to $3,500 per mile.
The NYSW has already benefitted to the tune of more than $7 million from this tax credit and is looking to maintain and upgrade rail infrastructure to keep shipments running quickly and safely, according to a news release from Schumer’s office.
Schumer’s bill would allow the NYSW to undertake an additional $2.5 million to $3 million in infrastructure improvements over the next two years.
The NYSW is an arterial route for 85 New York businesses that ship their products to the Port of New York for export, especially agricultural businesses transporting commodities such as lumber, feed ingredients, and motor vehicles, according to the news release.
The NYSW is “particularly important” to the transportation of grains from Upstate New York’s grain producers to the Port of New York, where they are then shipped around the world, Schumer’s office said.
Contact Reinhardt at ereinhardt@cnybj.com
Geneva company offers services to Caz Limo customers, employees
GENEVA — A Geneva bus and limousine company is hearing from brides-to-be and other groups following the sudden closure of Caz Limo, Inc. on Wednesday. Fitzgerald Brothers Bus and Limousine Co. has serviced the Syracuse market since 2001, the company said in an email message to CNYBJ.com. “We are calling back lots of drivers who
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GENEVA — A Geneva bus and limousine company is hearing from brides-to-be and other groups following the sudden closure of Caz Limo, Inc. on Wednesday.
Fitzgerald Brothers Bus and Limousine Co. has serviced the Syracuse market since 2001, the company said in an email message to CNYBJ.com.
“We are calling back lots of drivers who were off for the winter to meet this new demand,” Mike Fitzgerald, company owner, said in his message.
The firm operates a fleet of more than 30 vehicles that are of “similar size and composition” to Caz Limo, and, therefore, is “able to service those customers in the same capacity,” Fitzgerald said.
The company owner acknowledges that the Caz Limo situation is “unfortunate.”
Fitzgerald also notes that his business may be able to accommodate some of the company’s former employees, as his firm has openings for salespeople, mechanics, and drivers.
As CNYBJ.com reported Wednesday, Caz Limo, a well-known charter bus and limousine service in Central New York, went out of business due to the firm’s “financial situation.”
Contact Reinhardt at ereinhardt@cnybj.com
Motor-coach firm Ultimate Arrival gets into gear
SYRACUSE — More than five months after launching operations, a new local chartered-transportation company is hoping for growth in 2014. Ultimate Arrival, LLC, a family-operated business, is located in a 4,500-square-foot space at 971 Spencer St. in Syracuse, near the intersection of Hiawatha Boulevard. “We’re looking to grow in Syracuse,” says Jessica Sloma,
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SYRACUSE — More than five months after launching operations, a new local chartered-transportation company is hoping for growth in 2014.
Ultimate Arrival, LLC, a family-operated business, is located in a 4,500-square-foot space at 971 Spencer St. in Syracuse, near the intersection of Hiawatha Boulevard.
“We’re looking to grow in Syracuse,” says Jessica Sloma, a Bridgeport resident who serves as the company president and the firm’s majority owner.
The business has three divisions: motor-coach buses, executive transportation, and aircraft-charter brokerage.
The motor coach and executive-transportation divisions primarily serve the corporate and academic markets, along with demand for social outings, including weddings, nights on the town, and wine tours.
Ultimate Arrival is “still developing” the aircraft-charter brokering portion of the business, which is the smallest division of the three, says Sloma.
The firm’s principals are Jessica Sloma; Donald Kuepper, Jr., Sloma’s stepfather who serves as company vice president and director of operations; and Ryan Kuepper, Sloma’s step brother who also serves as vice president of aircraft-charter brokering.
Sloma owns 60 percent of the firm, while the Kueppers each own 20 percent, according to Sloma.
They began operations last September but formed the company a few months earlier in June, Sloma says.
The firm had landed its first contract before the principals had secured operating space. Ultimate Arrival’s first contract-generated business was with Harrah’s Casino in Atlantic City, N.J.
Ultimate Arrival partnered with Wade Tours, Inc. of Schenectady and rented that firm’s buses to begin the casino contract, according to Sloma.
And while the first contract didn’t take long, finding operating space for the business “took us some time,” Sloma says.
The principals needed a setting that provided both office space and a place to house and maintain motor-coach buses.
“So, we had to find overhead doors that we could drive in and also raise the buses to work underneath them. So, it was challenging,” Sloma says.
Jeff Kelsen, who owns Allegiance Realty, LLC at 920 Spencer St. in Syracuse, helped broker Ultimate Arrival’s lease with property owner Anthony D’Agostino, according to Sloma.
Ultimate Arrival purchased and uses a fleet of vehicles that includes two customized, 56-passenger motor coaches; two mini-coaches, including a 26-passenger shuttle with a flat screen TV and restroom and a larger 32-passenger shuttle; along with a 10-passenger Mercedes Sprinter van, a Lincoln crossover, and two Lincoln Navigators.
Ultimate Arrival found its motor coaches at the Orlando, Fla. location of College Park, Ga.–based Alliance Bus Group, Inc, Sloma says.
The Syracuse business also purchased some of its smaller sports-utility vehicles in Rhinebeck, N.Y., she adds.
Ultimate Arrival provides shuttle service for student teachers from Syracuse University’s School of Education to their assigned locations in the Jamesville-DeWitt and Liverpool School Districts, along with shuttle services for Christian Brothers Academy as well, Sloma says.
Ultimate Arrival is currently talking with Greek Peak Mountain Resort about partnering to attract Canadian tourists. The company also wants to provide trips to sporting events, New York City excursions, and multi-day trips.
The business employs 14 drivers, including 13 who are school-bus qualified, according to Sloma. The drivers are considered part-time employees, she adds.
The firm also employs a full-time master mechanic and a full-time compliance manager, according to Sloma.
Ultimate Arrival hopes to add drivers as demand increases, she adds.
The three partners self-funded the $300,000 needed to launch the business, Sloma says. Through more than five months of operation, Ultimate Arrival has generated close to $300,000 in revenue, she adds. Sloma projects a revenue figure of $1 million by the end of 2014.
Forming Ultimate Arrival
Sloma was working for DeWitt–based Lighthouse Marketing, Inc. in April 2013 when Don Kuepper suggested they pursue the transportation business.
Kuepper had retired from the U.S. Postal Service in March 2009, having spent his final three years working at a distribution facility in Hartford, Conn.
During the following winter, a friend suggested Kuepper learn how to drive a bus and work for Caz Limo, Inc.
“I loved it. I was living the dream,” he says, noting he made trips to 17 New York Yankees baseball games in 2010.
The company eventually promoted Kuepper to operations manager.
“In doing so, I got an in depth look at how the transportation industry worked,” he says.
He discussed the possibility of launching a similar type of business with his son, Ryan, who suggested the charter-brokering division.
Ryan Kuepper is currently the chief pilot for Syracuse–based Citation Jet with experience in commercial, corporate, and charter-aircraft service.
The elder Kuepper suggested adding in some ground-transportation options.
He eventually brought the idea to Sloma, who left her most recent job last June, she says.
“And, with several conversations, the idea quickly formed. And then the divisions quickly formed, so that was mid-April. And by the end of May, we had the business
plan almost wrapped up and the LLC formed,” she says.
Contact Reinhardt at ereinhardt@cnybj.com
Tioga State Bank: 150 years of navigating a community bank
How do you mark your 150th birthday? If you are Tioga State Bank (TSB), you celebrate for an entire year, starting with a ribbon-cutting, press conference, and gift of $20,000 to local food banks. The kick-off event took place Jan. 28 at the bank’s headquarters in Spencer. During 2014, TSB will promote a travelling display
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How do you mark your 150th birthday?
If you are Tioga State Bank (TSB), you celebrate for an entire year, starting with a ribbon-cutting, press conference, and gift of $20,000 to local food banks. The kick-off event took place Jan. 28 at the bank’s headquarters in Spencer.
During 2014, TSB will promote a travelling display about the bank, launch contests for adults and children, publish a cookbook with proceeds donated to the United Way, and participate in local parades.
Celebrating your sesquicentennial with five generations of the same family guiding a company is a rare event. “Tioga State Bank has survived The Civil War, two World Wars, the Great Depression, the Great Recession, and numerous other events and milestones,” says TSB’s current president and CEO, Robert M. Fisher. “During these 150 years, there have been many changes in the social fabric of our communities … The one thing that hasn’t changed is our mission to provide community banking at its best.”
The headwinds facing TSB today may be different, but no less difficult than in the past. “There is increased competition from other banks. We all have money to lend, but not enough borrowers, resulting in more competitive deals … Interest rates continue at historically low numbers causing compression in our margin,” Fisher says. “These low rates have a negative impact not just on TSB but also on the entire community-banking industry, which relies heavily on net-interest income for the majority of its profits … Credit unions continue to pursue more authority for commercial lending, meaning that they compete for many of the same deals we are pursuing … Technology is changing rapidly, requiring a constant investment in hardware, software, and training … [And] the regulatory burden continues to grow at a rapid pace.”
“Onerous” regulations
Fisher’s comment about the regulatory burden is best described as understatement. In an interview with The Business Journal in December 2012, he expressed concern about the recently established Consumer Finance Protection Bureau (CFPB), set up to protect the “little guy” from predatory financial firms.
Since then, the CFPB has moved quickly to open the floodgates of regulation. In January of this year, the regulators issued new rules clarifying when a borrower is considered able to repay a mortgage. The regulations run to hundreds of pages of opaque and complex rules, which leave lenders liable to repay all mortgage payments and precludes foreclosure on a property if regulators determine that the rules were not followed properly.
Two months ago, the CFPB reached a settlement with Ally Financial for $98 million, because the bank discriminated against minority customers. How did the regulators determine this since Ally collects no information on the race or ethnicity of its customers? The answer was to extract data published by the U.S. Census Bureau using surname “geocoding” to infer the race of Ally’s customers. Based on this, minorities paid interest rates 0.29 percentage points higher than those who were probably not minority customers.
Next on the drawing board are rules requiring financial firms to submit plans to the CFPB confirming that their staffs and suppliers are sufficiently diverse and new rules covering small businesses which, apparently, are now defined as “consumers.”
“Banking regs are onerous,” laments Fisher. “All banks are held to the same standard. I have two full-time employees who spend all their time complying with regulations and many other staff spending time on compliance. It’s very expensive.”
Despite these headwinds, TSB continues to be fiscally sound and profitable. “In its latest statement, TSB Services, Inc. [the holding company that owns the bank] posted assets of about $400 million and a net income of $4.4 million,” states Fisher. “We generated these numbers from 11 locations in Broome and Tioga Counties and 97 employees, who staff the bank and a subsidiary, Tioga State Investment Services (it offers a wide variety of financial planning options, life- disability- and long-term-care insurance plans, and brokerage services.) … We achieved these numbers even while mortgage refinancing revenue and transactions dropped significantly, only to be offset by increased commercial lending. Our revenues are now tilting toward the commercial side over the retail side, 55 to 45 percent.”
As for soundness, “Our tier-1 numbers have never been stronger,” asserts TSB’s president. “Historically, the bank has maintained an eight percent ratio; today, the number is 11 percent. (Tier-1 capital is the core yardstick of a bank’s financial strength as measured by its common stock, retained earnings, and some preferred stock.) On top of that, BauerFinancial has given us a 5-star rating for the past 22 consecutive years as recognition of our fiscally conservative policies.”
Fisher applauds his staff for the bank’s success, particularly the management team. In addition to Fisher as president, Anne E. McKenna is the CFO, George Bowen serves as chief lending officer, Lisa Welch is chief credit officer, Sharon Y. Yaple is a senior vice president responsible for retail banking and business development, and Christopher P. Powers is the senior vice president for human resources. Fisher also cites support from outside professional service providers: Hinman, Howard & Kattell, LLP for its legal work and the Syracuse office of The Bonadio Group for its accounting.
The future
TSB is well positioned for growth. “There is no plan to issue an IPO,” muses Fisher. “The bank has always had a long-term focus on our direction. We don’t want to be guided by quarterly results. [The holding company] … currently is closely held with the majority interest owned by the Fisher family. This allows us to control our destiny and be flexible in our decision-making. Historically, our growth has been organic, except for a merger in 1961 and the acquisition of a branch in Waverly in 1991 from Fleet/Norstar. Our branch expansion has been largely de novo, which runs contrary to the industry, but we think it’s a less expensive way to grow in the long-term.”
TSB’s strategy for growth is to constantly look for opportunities. “We made the move into Broome County 10 years ago. We studied the potential carefully and then committed the bank’s resources. If we grow geographically, I assume we are looking at contiguous areas, because we know the market best. Or we could buy a mortgage company if it were a good fit … Bottom line, however, is that we really understand banking best.”
Fisher says he runs a “boring” bank. A visit to any of the branches or TSB’s web site would suggest otherwise. Customers have access to all the technology and features of the “big banks” with online and mobile banking, online bill paying, ACH processing, telephone banking with 24-hour access, and talking ATMs. If you are looking for investments, life-, disability-, long-term-care or health-insurance, tax or estate planning, retirement planning, or business planning, Tioga State Investment Services offers a wide range of options. “In 2014, we’re adding ‘TSB Mobile Deposit Anywhere’ (e-mail checks for deposit), smart ATMs that handle both checks and cash, and ‘iChat,’ where you can talk to a real person in our service center when you are online with a problem,” adds Fisher.
Is there a sixth generation in the wings? Fisher’s son Josh is currently a sophomore at the University of Pittsburgh. Daughter Kate is a freshman at Nazareth College. Both have already worked at the bank when not in school. Daughter Allison, who is 10, has yet to intern at TSB. Fisher says it’s too early to determine whether the family tradition will reach six generations.
The 46 year-old president of TSB resides with his wife, whom he met at the University of Notre Dame and married in 1991, in Owego.
Contact Poltenson at npoltenson@cnybj.com
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.