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NBT stays ahead of the game by playing offense
NORWICH — What is a bank supposed to do? Pressure on interest income is at Great Depression levels, the economy is growing at a pace only a tortoise could love, unemployment is stubbornly high, Washington continues to “protect” consumers by imposing thousands of pages of new banking regulations, and our legislators are gridlocked over a […]
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NORWICH — What is a bank supposed to do? Pressure on interest income is at Great Depression levels, the economy is growing at a pace only a tortoise could love, unemployment is stubbornly high, Washington continues to “protect” consumers by imposing thousands of pages of new banking regulations, and our legislators are gridlocked over a solution to our economic malaise.
Play offense.
While many banks have focused on cleaning up their balance sheets and adding capital, NBT Bank, N.A. (NBT), an operating company of NBT Bancorp, Inc. (Nasdaq: NBTB) located at 52 S. Broad St. in Norwich, has remained focused on growth and profitability. “We’re a long-term, high-performing institution,” says Martin Dietrich, president and CEO … That has been the bank’s strategy since its founding in 1856 … We have grown organically, augmented with strategic acquisitions … The bank isn’t dependent [just] on acquisitions to move the needle.”
NBT moved the needle substantially in the first quarter when it closed on its latest acquisition — Alliance Financial Corp. (parent of Alliance Bank), headquartered in downtown Syracuse — adding 25 percent to its assets.
“NBT considered the complementary locations of Alliance’s branch network and the need to diversify our geographical market and customer base … [The] Alliance [acquisition] expands the size of our footprint in markets that are similar to those we already operate in. The bank’s [Alliance] competitive position in its five-county region of Central New York and the compatibility of our [corporate] cultures helped attract us to Alliance as a candidate,” says Dietrich.”
He also noted “… that NBT had wanted to enter the Syracuse market for at least 10 years [prior to the acquisition]. The cost of entering “de novo” into a new market is usually too high … A bank needs scale to be relevant, especially in the Syracuse MSA, [which is overbanked] … NBT is very patient in finding the right candidate … In the case of Alliance, we knew Alliance president and CEO Jack Webb well and that he has a quality team. We felt comfortable about how the two companies would operate together … The stars were lined up.”
Alliance Financial’s board of directors agreed to the acquisition because of its concerns for the “… current and prospective environment in which Alliance operates,” according to the amended Form S-4 registration statement filed with the Securities and Exchange Commission on Jan. 28. The statement identified “… national, regional, and local economic conditions, the competitive environment, and the increasing cost associated with recent legislation and expanding regulatory oversight … The trend toward consolidation in the financial services industry and the likely effect of these factors on Alliance’s potential growth, development, and profitability” were also cited in the statement for Alliance Financial as reasons for seeking a buyer.
Both banking companies concluded that the deal would enhance their shareholders’ long-term value and liquidity.
After the deal, NBT and Alliance combined have 8.6 percent of deposits in the 16-county, Business Journal footprint surrounding Syracuse (based on FDIC data from June 30, 2012). NBT has no presence in six of these counties (Cayuga, Chemung, Jefferson, Lewis, Seneca, and Tompkins); the remaining 10 counties represent a10.63 percent NBT share of deposits based on the same FDIC data.
“In the Syracuse MSA (Onondaga, Oneida, Madison, and Oswego counties), NBT now is number three in market share and number one among community banks. In Cortland County, we’re number one in overall market share,” says Dietrich.
The 2013 first-quarter financial statement of NBT reflects a corporation with $7.6 billion in assets, 1,900 employees, 161 banking locations in five states (New York, Pennsylvania, Vermont, Massachusetts, and New Hampshire) serving more than 300,000 households, and 199 ATMs. NBT closed out 2012 with net income of $54.558 million, “… the ninth year in a row that the bank has posted more than $50 million in net income,” adds Dietrich.
NBT strategy
“The move into the Syracuse market [reflects] the bank’s strategy of the last decade … We [target] midsize, urban centers that are surrounded by suburbs, rural villages, and towns; areas in which we can grow … Our recent entry into the New England region reflects this; the markets are similar to Upstate … While we are investing in these new markets, we are not abandoning our legacy markets,” Dietrich emphasizes.
While much attention has been focused on the recent Alliance Bank acquisition, NBT has also continued to play offense and move the needle through organic growth. “NBT had strong organic loan growth in 2012, both from the commercial and consumer sides … The bank added nearly a half-billion dollars over the previous year … Noninterest income also increased nearly 9 percent, resulting from our insurance and financial-services-division efforts, fees, and mortgage-banking revenues … At the same time, our allowance for loan losses and nonperforming loans declined … In a difficult economic climate, the life-long relationships we have built with our customers and the value we have created for them drives our success,” says Dietrich.
How are these customer relationships built? “… Through our employees,” responds Dietrich. “NBT strives to create an environment that values its employees and helps them to grow … We are always concerned with attracting and retaining talent … The strong, financial performance of the company is important, but so are our [outreach] efforts to ensure that the employees focus on customer satisfaction … We want them to be proud of working at the bank … They guarantee our competitive edge.
“We have a management-development program to cultivate our future leaders, and we have a summer-employment program that offers paid work experience to graduating high-school seniors and college students. Interns start off as tellers, and returning interns have the opportunity to work in different departments. We even run a mock interview program to hone their skills,” avers Dietrich. NBT also introduced Strive, a financial-literacy program for children and young adults. “That’s a real example of our long-term strategy in building customer relationships,” says Dietrich.
Dietrich’s success in steering NBT through the challenges of competition, technology, and a forest of regulation is due in large part to the bank’s management team. Michael J. Chewens is chief financial officer, David E. Raven is the president of retail banking and the Pennstar Bank president and CEO, and Jeffrey M. Levy is president of commercial banking. Timothy L. Brenner is president of wealth management, Catherine M. Scarlett is director of human resources, and Joseph R. Stagliano is chief information officer. Rounding out the management team is Howard L. Atkinson, chief risk officer; F. Sheldon Prentice, general counsel, and corporate secretary; and Jack H. Webb, executive vice president, strategic support.
Dietrich, 58, is a native of Chenango County and a 1977 graduate of Colgate University, where he earned his bachelor’s degree in economics. For four years prior to joining NBT in 1981, he worked in local construction. Dietrich has worked in a number of areas in the bank including accounting, commercial banking, marketing, and retail banking. He became president and chief operating officer of NBT Bank in 2000 and advanced to the position of CEO in 2004. His duties as NBT Bancorp president and CEO were added in 2006. Dietrich and his wife Susan have been married for 27 years. The couple has two children, both attending Union College.
Contact Poltenson at npoltenson@cnybj.com
KeyBank restructures management, Fournier oversees retail sales in larger area
KeyBank, a major player in the Central New York banking market, recently initiated a management reorganization that cut 24 jobs companywide, including two in Syracuse, and shifted the bank’s regional lineup. Locally, the effort shifted additional responsibility to Stephen Fournier, who now serves as market president for Central New York. Cleveland, Ohio–based KeyBank has undertaken
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KeyBank, a major player in the Central New York banking market, recently initiated a management reorganization that cut 24 jobs companywide, including two in Syracuse, and shifted the bank’s regional lineup.
Locally, the effort shifted additional responsibility to Stephen Fournier, who now serves as market president for Central New York.
Cleveland, Ohio–based KeyBank has undertaken “an internal” reorganization, which doesn’t affect its clients, says Therese Myers, a company spokesperson.
“They’re [clients] still going to be interacting with the same relationship managers they’ve had in the past, the same branch managers, the same tellers,” she adds.
Of the two jobs that were eliminated in the Syracuse market, one was “a retirement,” another was “a consolidation” and that individual is no longer working for the company, says Stephen Fournier, president of the Central New York market.
The local Key employee who retired had worked in a retail-leadership role, and the other employee served in a marketing-support function, according to Fournier.
Myers declined to name the local employees.
Myers and Fournier spoke with The Central New York Business Journal in a phone conversation on June 10.
Regional restructuring
KeyBank’s restructuring changed the banking company’s regional breakdown from 18 districts operating in three large regions to nine regions, Fournier says.
For example, the Central New York, Capital Region, and Hudson Valley markets are now part of the larger Eastern New York region, one of the nine new regions in its managerial structure.
“It better realigns us to our strengths with a three-market region,” Fournier says.
Fournier remains the president of the Central New York market. The Capital Region market and the Hudson Valley market each have their own presidents, he adds.
“We’re continually reviewing our structure, [and] the organization to meet the needs of clients, maintain our strength, position our marketplace, and meet our business needs,” Fournier says.
Even with the management restructuring, Fournier notes KeyBank continues operating in 23 East Coast markets, with presidents in each of those markets, including Syracuse.
“The only difference is we’ve gone from three regions to nine regions, with a regional sales exec[utive] in each of those regions,” Fournier says.
Fournier previously held the title of district president in Syracuse. Now, besides serving as the Central New York market president within the Eastern New York region, he’s also responsible for all retail operations in the bank’s branches in that region’s three markets.
“Basically, my responsibilities have broadened to be retail-sales leader to include the Capital [region] market and the Hudson Valley market,” he adds.
His responsibilities in advocating for the bank’s clients and integration for all of Key’s lines business “really hasn’t changed,” Fournier says.
Fournier, who has worked for KeyBank for 28 years, remains based at the KeyBank office at 201 S. Warren St. in Syracuse.
About KeyBank
KeyCorp (NYSE: KEY), the parent company of KeyBank, on April 18 announced it earned net income from continuing operations of $196 million, or 21 cents per share, in the first quarter.
That’s up slightly from $195 million, or 20 cents a share, in the year-ago period. Key’s earnings per share also beat analysts’ expectations of 20 cents.
Key incurred $15 million, or one cent per share, of costs associated with a previously announced cost-cutting initiative, the company said.
KeyCorp will report its second-quarter earnings on July 15.
KeyBank operates more than 1,000 branches in 14 states.
In Central New York, Key has 400 employees, 56 branches, 100 ATMs in a 12-county area from Plattsburgh south to Cooperstown, according to Myers.
KeyBank is the number two bank in the Syracuse–metro area deposit market with 27 branches, more than $1.8 billion in deposits, and a market share of 16.8 percent, according to the latest (June 2012) statistics from the Federal Deposit Insurance Corp.
The bank also has two offices, more than $58 million in deposits, and a market share of 1.6 percent in the Utica–Rome area.
Contact Reinhardt at ereinhardt@cnybj.com
NE Classic Car Museum: the cars will drive you wild
Come away with me, Lucille In my merry Oldsmobile Down the road of life we’ll fly Automobubbling, you and I — First written in 1905 NORWICH — It’s up to your imagination to determine what “automobubbling” is, but it takes no imagination to recognize America’s enduring love affair with classic cars. If you “Google”
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Come away with me, Lucille
In my merry Oldsmobile
Down the road of life we’ll fly
Automobubbling, you and I
— First written in 1905
NORWICH — It’s up to your imagination to determine what “automobubbling” is, but it takes no imagination to recognize America’s enduring love affair with classic cars. If you “Google” classic cars, up pops the Northeast Classic Car Museum (www.classiccarmuseum.org) located at 24 Rexford St. in downtown Norwich.
“The outside [of the museum] doesn’t reflect the jewels inside,” notes D.R., a visitor from Ontario, on the museum’s website.
The exhibit is housed in five connected, refurbished buildings that encompass 88,000 square feet — all at ground level. “The current display includes 160 vintage cars,” says Phil Giltner, the president of the board of trustees of the museum. “We have a pre-war collection (World War II), cars from the nifty 50s, street rods, a post-war collection, the legends [Auburns, Cords, Duesenbergs, Packards], and the world’s largest collection of Franklins (32), manufactured in Syracuse. We also have a special exhibit of motorcycles and an exhibit of airplane engines from World Wars I and II.”
The spark for the museum came from George Edward Staley, a resident of the nearby hamlet of Lincklaen. A retired industrialist who collected classic cars, Staley proposed to the city of Norwich in 1995 that he would donate a portion of his sizable collection of vintage automobiles if the city would build a museum to house the exhibit and maintain it for at least five years. Eager to enhance tourism to the region, Norwich solicited a government grant, which required a 50/50 match from other sources.
“By 1997, we had raised the money and opened our exhibit in 28,000 square feet of space,” recalls Giltner. “The original exhibit included about 50 cars … In 1999 and 2000, we added two buildings previously owned by the Norwich Shoe Co. Thanks to a generous gift from Harold Ray of Little Falls in 2009, we acquired buildings four and five, which were the old Bennett-Ireland Foundry … Today, the museum owns 100 of the cars on exhibit and the [remainder] is loaned to us.”
The Northeast Classic Car Museum operates on a $300,000 annual budget. “Approximately a quarter of our revenues come from grants, a quarter from ticket and membership sales, a quarter from donations and fund raising, and the last quarter from our endowment fund … The museum is in the process of setting up a foundation for the endowment, and we hope to have it completed by year’s-end … Our staff [currently] includes four full-time employees and about 80 volunteers … The majority of the budget funds salaries, taxes, and benefits, and the museum spends more than 10 percent on marketing and advertising.” Giltner appraises the museum’s collection at a value between $3 million and $6 million.
Giltner says he is focused on one goal: “increase[d] attendance … I want admissions to reach 15,000 [annually] … Paid attendance is currently in the low teens [thousands] … We’re not on an interstate highway, [so our] location hurts attendance. [Still], attendance has increased every year since the museum opened … Many of our visitors are car buffs, but a large number is [simply] drawn by a love of cars … They are all ages and many come from foreign countries … Our biggest [contingent] of attendees from abroad comes from Israel … An author of an Israel travel guide said there are three places you must see in New York: the Statue of Liberty, Niagara Falls, and the Northeast Classic Car Museum in Norwich … Our most popular display is the post World War II cars.”
To keep the exhibit fresh, the museum rotates about 35 cars every year, and creates an annual theme for the exhibit. “We focus on a radius of three hours’ drive-time from Norwich (New York and Northeastern Pennsylvania) for distributing our brochures and for displaying billboard advertising … The marketing committee also uses Time Warner Cable for promoting the museum by rotating our regional buys … We reach out to car clubs and neighboring tourist venues [such as] … the [National] Baseball Hall of Fame in Cooperstown,” says Giltner. “Perhaps our best marketing is what sets us apart from other car museums: Here, the cars are the stars.”
The museum’s principal benefactor “… had a dream. As a little boy, he loved cars … He has not stopped dreaming his dream,” wrote Kathy O’Hara in an article published in a special edition of The Evening Sun (Norwich) on May 22, 1997, for the opening of the Northeast Classic Car Museum. (The museum opened on Memorial Day, 1997.)
Staley originally trained to be an airplane mechanic and worked at the Martin Aircraft Co. and for TWA. During World War II, he was shipped to Tinian Island in the Pacific Ocean to work on the B-29 “Enola Gay,” which dropped the first atomic bomb. After the war, Staley worked for a company that overhauled Franklin engines, before he and two partners started their own company in 1950 repairing aircraft accessories. The company established locations on Long Island and in Florida and Texas. He began collecting cars in 1962 and concentrated on his favorite, the Franklin.
Staley called car-collecting “an incurable disease.” He died in 2011, but his dream lives on in the classic cars he and others donated to the Northeast Classic Car Museum. Open seven days a week, the museum captures the essence of the American love affair with the horseless carriage. You may not be able to explain “autobubbling” to others, but a trip to the museum in Norwich puts everything in perspective. The cars will drive you wild.
Contact Poltenson at npoltenton@cnybj.com
Solo practice rehabwoRx uses technology for efficiences
DeWITT — An electronic-health record, an outside vendor handling billing, and a website for patient education ahead of an office visit. That’s all part of the technology and service package that Dr. Jeffrey Kahn uses to operate rehabwoRx Physical Medicine and Rehabilitation, PLLC. The office is located in a 2,200-square-foot space in the Brittonfield Medical
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DeWITT — An electronic-health record, an outside vendor handling billing, and a website for patient education ahead of an office visit. That’s all part of the technology and service package that Dr. Jeffrey Kahn uses to operate rehabwoRx Physical Medicine and Rehabilitation, PLLC.
The office is located in a 2,200-square-foot space in the Brittonfield Medical Center at 5000 Brittonfield Parkway in DeWitt. Kahn is the practice’s sole owner and practitioner.
In his practice, Kahn treats athletes, both competitive and recreational, including those participating in triathlons.
“Additionally, I see patients who’ve been injured on the job, injured in motor-vehicle accidents, or who suffer from painful spinal of musculo-skeletal or neurological disorders who require the care of a specialist,” Kahn says.
Because of that, Kahn believes the scope of his practice is “more broad” than many other providers who may solely specialize in joint care or spinal care.
rehabwoRx instituted the use of an electronic-health record in 2011, prior to the pending federal regulations which could potentially lead to withholding of payments to providers who don’t use that technology, Kahn says.
In 2014, Medicare is going to require that providers treating its beneficiaries utilize electronic-health record technology and have the ability to prescribe electronically, he adds.
Kahn instituted electronic-health records to create “efficiency” in the practice, including “a more streamlined” method of managing its patients, he says.
“The benefit has been significant to me, and we have had for over two years a completely paperless-office system,” Kahn says.
The practice also uses a computer-based fax system and wireless technology so all incoming and outgoing records are managed electronically, he adds.
The system allows Kahn to review and sign off on documents in a timely manner, and rehabwoRx to schedule and treat patients “in a quicker manner,” he says.
The practice also has electronic interfaces between its scheduling and billing program, and the electronic health record, Kahn says, so following a patient visit, he’s already billed the individual.
“Our billing team, which is out of the office, is able to process the insurance claims in an efficient manner, and they are given all of the billing-related information moments after the patient has been seen,” Kahn says.
The billing vendor for rehabwoRx, Medical Management Resources, Inc., is also located in the Brittonfield Medical Center, he adds.
The practice also uses a website for patient education prior to a scheduled visit.
“I’ve had a website in one form or another for at least 10 years, [even] when it was not common for medical practices to have websites,” Kahn says.
He worked with Scottsdale, Ariz.–based Omedix to create the website, which includes a map and driving directions, information about insurance responsibilities, and details about the conditions Kahn treats, the diagnostic tests available, and the procedural services the practice performs.
rehabwoRx employs one full-time worker with no plans for additional hiring in 2013. Kahn leases his space from Brittonfield Associates, LLC, but declined to disclose his monthly lease payment.
His firm generated between $500,000 and $1 million in gross revenue during 2012. Kahn expects a similar range in 2013, and perhaps more, saying he is seeing more patients since he moved the practice to Brittonfield last December.
As a practitioner, Kahn provides 500 “services” per month, he says.
Launching, moving rehabwoRx
Kahn came to Syracuse in 1989 following his work at Mount Sinai Hospital in New York City to continue his work as a physical-medicine and rehabilitation specialist at what was then called SUNY Upstate Medical Center.
After nine years in the academic setting, which included both teaching and patient-care responsibilities, Kahn decided to leave the school launch his own non-surgical spinal and muculoskeletal care practice.
“There was a great deal of flux in the medical community in terms of other providers merging practices, changing practices, and I felt that at that point in time, I was in a better position to be an independent practitioner,” Kahn says.
He launched rehabwoRx at Upstate’s Madison-Irving Medical Center in Syracuse, where it operated for 14 years.
As the years moved on, Kahn began to realize that operating his practice near a hospital wasn’t really necessary because rehabwoRx is an outpatient practice with no hospital responsibilities.
In addition, “due to increasing congestion and traffic difficulties,” Kahn says his patients were asking for a more suburban location.
He moved his practice to the Brittonfield Medical Center in December 2012.
“As a solo provider, who has an office which has a high degree of technology, I wanted to be able to create a single office location, which was geographically easy for patients across the broad area from which we draw patients to be able to access the office, as well as move into a building where there were other providers who I could have interaction with on a clinical basis,” Kahn says.
The location affords his patients free parking, and with patients who come from the North Country, the Southern Tier, as far west as Cayuga County, and as far east as Herkimer, Kahn wanted something that would provide them with easy access, either via the New York State Thruway or Interstate 481, he says.
Contact Reinhardt at ereinhardt@cnybj.com
ReEnergy Holdings reopens Black River generation facility
FORT DRUM — ReEnergy Holdings, LLC earlier this month announced the reopening of its Black River generation facility at the U.S. Army’s Fort Drum installation near Watertown. The facility operates with 60 megawatts of generation capacity, Latham, N.Y.–based ReEnergy Holdings said in a news release. It could provide energy to satisfy all of Fort Drum’s
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FORT DRUM — ReEnergy Holdings, LLC earlier this month announced the reopening of its Black River generation facility at the U.S. Army’s Fort Drum installation near Watertown.
The facility operates with 60 megawatts of generation capacity, Latham, N.Y.–based ReEnergy Holdings said in a news release.
It could provide energy to satisfy all of Fort Drum’s power needs, which currently peak at about 28 megawatts, but could rise as the base population grows, the company said.
ReEnergy Black River has submitted a proposal to the U.S. Department of Defense as part of a competitive-procurement process to provide sustainable energy to Fort Drum.
ReEnergy Black River produces about 422,000 net MWh (megawatts) of electricity annually, which is enough to supply the power needs of about 55,000 homes, according to the company website.
Identifying stranded, undercapitalized assets in the biomass-to-energy industry is part of the business strategy at ReEnergy Holdings, says Larry Richardson, company CEO.
“Our focus has been here in the Northeast, so the Black River facility itself was one that we were aware of for several years and saw this as an opportunity,” Richardson says.
The facility includes a 45,000-square-foot boiler room and an 8,600-square foot warehouse and maintenance shop, the company said. The plant sits on about 10 acres of land.
ReEnergy Holdings, LLC, a portfolio company of New York City–based Riverstone Holdings LLC, owns and operates facilities that use forest-derived woody biomass and other wood-waste residues to produce “homegrown,” renewable energy, the firm said.
It also owns facilities that recycle construction and demolition debris.
Affiliates of Riverstone Holdings LLC and a senior management/co-investor team comprised of industry professionals formed ReEnergy in 2008.
ReEnergy operates in six states, employs about 290 people, and owns and/or operates nine energy-production facilities with the combined capacity to generate 325 megawatts of renewable energy, the company said.
Restarting the plant
ReEnergy Holdings acquired the Black River generation facility in December 2011 after its former owner, Energy Investors Funds of Needham, Mass., idled the plant in early 2010. The plant had primarily burned coal to produce electricity, the company said.
ReEnergy then invested more than $34 million to convert the facility to use biomass as its primary fuel in a project that started in 2012.
“We self-funded the construction financing,” Richardson says.
ReEnergy Holdings “self-performed with various vendors [a] significant amount of the work” in the retrofit project, but Pittsfield, Me.–based Cianbro Corp served as the general contractor handling the site work, civil work, and fuel-yard installation, Richardson says.
ReEnergy employs 33 full-time workers at the plant. They include the plant manager, the operations staff, a maintenance staff, and an administrative staff, he adds.
In addition, an estimated 144 people are working in logging crews with 15 companies collecting forest residue from regional forests that ReEnergy has under contract in its fuel-procurement program.
In all, the facility will create an estimated 307 new direct and indirect jobs in the community, the firm said.
ReEnergy also owns biomass-to-energy facilities in Lyons Falls in Lewis County and in Chateaugay in Franklin County.
ReEnergy Holdings doesn’t disclose any of its revenue information, Richardson says.
The New York State Energy Research and Development Authority (NYSERDA) has selected ReEnergy Black River to sell renewable-energy credits to NYSERDA under New York’s Renewable Portfolio Standard, according to the company.
That’s a program tasked with obtaining 30 percent of New York’s electricity from renewable sources by 2015.
Wood, willow for fuel
ReEnergy plans to spend about $11 million in annual wood purchases from local loggers. The company has acquired and leased wood chippers to 14 of its fuel suppliers in New York, allowing loggers to secure long-term agreements to provide fuel to ReEnergy biomass-to-energy facilities, while also buying wood chippers under ReEnergy’s lease-to-own program.
Under the terms of these contracts, the loggers will make long-term commitments to sell their biomass fuel to ReEnergy. They will pay for the chippers over time, as the firm deducts the equipment-purchase payment from its payment to the suppliers for the biomass fuel, the firm said.
Ownership of the chipper will transfer from ReEnergy once the supplier has fully paid for the equipment.
But wood won’t be the facility’s only source of fuel.
Through a program launched in 2012 and funded by the U.S. Department of Agriculture (USDA) and in collaboration with the State University of New York College of Environmental Science and Forestry in Syracuse, the ReEnergy Black River facility also will use locally grown shrub willow as a fuel.
Up to 3,500 acres are planted within an eligible region that spans nine counties, including Jefferson, Oswego, Lewis, Oneida, St. Lawrence, Clinton, Franlin, and Essex.
ReEnergy will purchase the harvested willow and use the biomass to produce energy at its biomass-to-energy facilities, with the Black River facility accepting about 80 percent of the fuel.
USDA offices in the nine counties will administer the funding.
The 11-year project is expected to produce a total of nearly 400,000 green tons of biomass for use in ReEnergy facilities. The willow, which can be harvested every three years, will have the potential to continue producing biomass for at least another decade after the program is completed.
SFI standard certification
At its grand-opening event on May 31, ReEnergy Holdings announced that the Sustainable Forestry Initiative (SFI) Standard has certified the firm, verifying that ReEnergy’s biomass-procurement program promotes land stewardship and responsible-forestry practices.
“We recognize the commitment and effort ReEnergy has made to procure fiber from responsible sources,” Kathy Abusow, president and CEO of the Sustainable Forestry Initiative, said in the ReEnergy news release.
“The SFI Standard promotes responsible forest management for all forest uses. Third-party certification to SFI Fiber Sourcing requirements promotes best-management practices for water quality, logger training, and prompt regeneration of the forest,” Abusow said.
The nonprofit Washington, D.C.–based SFI, Inc. is an organization responsible for maintaining, overseeing, and improving a sustainable forestry-certification program that is the “largest single forest standard in the world,” the ReEnergy release said.
Contact Reinhardt at ereinhardt@cnybj.com
Allume focuses on lighting efficiency
DeWITT — Lighting does a lot more than illuminate a workspace. Oftentimes, lighting can run up the electric bill for many businesses. That’s where Allume LLC strives to help businesses. Owner Joseph Lormand originally founded his business as JPL Electric, a commercial and industrial wiring business, in 1997. However, in 2007, he changed the business
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DeWITT — Lighting does a lot more than illuminate a workspace. Oftentimes, lighting can run up the electric bill for many businesses. That’s where Allume LLC strives to help businesses.
Owner Joseph Lormand originally founded his business as JPL Electric, a commercial and industrial wiring business, in 1997. However, in 2007, he changed the business name to Allume, LLC to better reflect his growing interest and focus on energy savings and renewable energy.
“I’m trying to do the same industrial type of work, but also bring my customers more value-added services by lowering their costs,” Lormand says.
Providing that service is a bit more complicated than replacing old light bulbs with more efficient models, he notes. He evaluates numerous factors including what a space is used for, when it is used, and even whether or not fixtures are the correct ones for the space and are in the correct place to provide the best lighting.
Allume recently completed a multi-year project at the H.P. Hood plant in Oneida to upgrade the lighting. The project goals were to improve illumination, reduce energy consumption, and install fixtures appropriate for the areas of operation.
Lormand says his company just wrapped up work on a 27,000-square-foot, 60-foot high cooler warehouse where it removed old lighting and installed high-output LED luminaires that deliver 30,622 lumens each, while consuming only 362 watts of electricity. Additionally, each is equipped with a motion control so lights are only turned on as needed.
“It’s much brighter and more energy efficient,” Lormand says of the end result.
The new lighting reduced the annual energy requirement by 684,000 kilowatt hours and reduced Hood’s carbon footprint by 375,000 pounds of carbon dioxide, Lormand says. Hood officials did not respond to media inquiries about the project prior to press time.
While every project is unique, most businesses have opportunities they can take advantage of to achieve cost savings from lighting upgrades.
“There’s money out there to help people do this,” Lormand adds. Many projects qualify for incentives and other forms of financial assistance from organizations like the New York State Energy Research and Development Authority (NYSERDA). And, Allume, as a commercial lighting business partner with NYSERDA, can help businesses apply for those incentives, Lormand says.
These days, about half of Allume’s work is lighting upgrades, but Lormand says he can see that number rising as technology continues to improve and more businesses become aware of the benefits of upgrading their lighting. Lormand has also done some recent print advertising to promote the greener side of his business.
Headquartered at 7000 Airways Park Drive in DeWitt, Allume (www.allume-llc.com) currently employs six people.
The company says its services include energy-efficient lighting, solar photovoltaic, and power distribution design and installation. Its work has included installing lights and controls at dairy farms to increase milk production.
William Taylor discusses the evolution of sustainable design
DeWITT — Sustainable design and materials are a trend nowadays for new construction and design, but one long-time DeWitt architect says the principals involved really haven’t changed since his early days in the business. William Taylor, president and owner of William Taylor Architects, PLLC in DeWitt, remembers his first job with the firm Clark, Clark,
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DeWITT — Sustainable design and materials are a trend nowadays for new construction and design, but one long-time DeWitt architect says the principals involved really haven’t changed since his early days in the business.
William Taylor, president and owner of William Taylor Architects, PLLC in DeWitt, remembers his first job with the firm Clark, Clark, Millis & Gilson, which designed the original buildings at Onondaga Community College, he says.
During his time there, he remembers noticing the interior of the structures the firm had designed, saying “it was like a rock.”
“It was always clean. They were always easy to maintain. I started looking at the reasons for that,” he says, noting the design and materials involved were always factors.
So, when Taylor launched his own firm in 1983, he intended to apply the lessons he had learned early in his career.
“They got the right idea. I’m going to go that way,” he says.
Over the years, Taylor has noticed that the Onondaga County Courthouse and some of the area’s old-school buildings include a composite material called terrazzo, a ground cement that’s one of the “greenest flooring products” available, he says. “That’s not new.”
Taylor also points to the region’s old factory structures, which he described as being built “like a tank,” he says.
“If you find a use for that and renovate that, you’ve made a huge step in green because you’re not expending the energy to take the building down,” he says.
Taylor does acknowledge that some elements of sustainable design and construction are technology driven, including the use of energy-management systems.
“That’s new,” he says.
Energy management is also the goal in the geothermal projects that the firm has worked on in recent years, including two that involved school renovations.
Recent geothermal projects
Geothermal heating, as Taylor explains it, is a cost-efficient, low-maintenance that harnesses heat stored in the earth and converts it for heating and cooling in the structure.
“Geothermal is using the earth’s mass to heat and cool a building,” he says.
Taylor’s firm completed geothermal projects at the Copenhagen Central School District in November 2012 and the Charlotte Valley Central School District in September 2011.
William Taylor Architects provides architectural-design services in the educational, municipal, medical, commercial, and industrial sectors.
A geothermal heat-pump system consists of a heat pump, an air delivery system (ductwork), and a heat exchanger-a system of pipes buried in the shallow ground near the building, according to renewableenergyworld.com, a Nashua, N.H.–based company launched in 1998 by a group of renewable-energy professionals who wanted their work to relate to their passion for renewable energy.
In the winter, the heat pump removes heat from the heat exchanger and pumps it into the indoor air delivery system.
In the summer, the process is reversed, and the heat pump moves heat from the indoor air into the heat exchanger. The heat removed from the indoor air during the summer can also be used to provide a free source of hot water.
Both school-district projects involved boreholes drilled to harvest the absorbed solar heat stored in the outermost layer of the earth for use in the heat pumps.
The Copenhagen project involved about 38 bore sites, each about 350 feet, and the bore sites in Charlotte Valley went to about 425 feet. Crews had to limit the depth of the sites in Copenhagen because they encountered a gas pocket, Taylor says.
In terms of cost savings for the client, the $9.5 million project in Copenhagen was one Taylor described as “significant because pre-geothermal, they were heating with fuel oil, and depending upon how cold the winter was, they were using somewhere between 35[,000] and 40,000 gallons of fuel oil. Post geothermal, there’s no need for any fuel oil.”
The school district saves on fuel costs, Taylor says, but at the same time, the geothermal-heating system drives up electrical costs between 10 and 15 percent.
Electrical costs are “highly controlled,” making them easier to plan for, Taylor says.
“So, you’re saving all the cost of fuel oil that you [previously spent] and you’re increasing your electrical [costs] by 10 to 15 percent, so you’re saving the differential between the two,” he says, depending on your cost per gallon of fuel oil.
That can be anywhere from $2 per gallon, or a total of $70,000, to $4 per gallon, or a total of ($140,000 annually.
“That’s significant,” Taylor says.
The $7.25 million renovations at the Charlotte Valley Central School District involved a similar process to the Copenhagen project, including the removal of its existing fuel-oil steam-boiler system, unit ventilators, piping, and installed the geothermal system, Taylor says.
As of now, William Taylor Architects isn’t working on any geothermal projects, Taylor says.
“But if we come across a district that’s in the same kind of situation, we’ll definitely recommend to them to take a look at it,” he adds.
William Taylor Architects operates in a 2,300-square-foot space at 6432 Baird Ave. in DeWitt. The firm employs five full-time workers and has no plans for additional hiring in 2013.
Taylor leases the space from Julia Chiarizia.
He declined to disclose the firm’s annual-revenue figure for 2012, but said revenue “stayed even” compared to 2011.
Taylor also projects the firm’s revenue figure for 2013 “probably will decrease.”
Contact Reinhardt at ereinhardt@cnybj.com
Efficient Green Technologies Reach a Boil at Menorah Park
It’s a safe bet that being director of facilities for the entire Menorah Park campus requires a whole lot of energy. Russ Martin, director of buildings and grounds, at Menorah Park will need it to execute his ambitious plan to save a lot of energy. Comprising the Jewish Health & Rehabilitation Center, a 132-bed nursing
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It’s a safe bet that being director of facilities for the entire Menorah Park campus requires a whole lot of energy. Russ Martin, director of buildings and grounds, at Menorah Park will need it to execute his ambitious plan to save a lot of energy.
Comprising the Jewish Health & Rehabilitation Center, a 132-bed nursing home and rehab facility, and The Inn, a supportive-living complex, the main complex of Menorah Park of Central New York keeps growing to fulfill its “continuum of care” mission. The Oaks, an independent senior-living community, is a separate building on the Menorah Park campus.
“Our ambition is to create a completely “green” community at Menorah Park, inside and out,” says Martin, “that includes a space between the facilities where family members can gather but don’t have to go outside the campus to enjoy the outdoors.” That future space will be called The Commons. Martin says that the work he is doing now will not only benefit Menorah Park’s residents and guests but will also help the organization save money and the environment as it grows.
“Recently, we converted our lighting from T12 to T8 and converted all exit signs to LED, which saved us $5,000 a month,” says Martin, “and with the energy savings, it only took seven months to get a payback on our investment.”
As part of Menorah Park’s plan to successfully enter a new era of money-saving technologies, it’s the first nursing-home complex in Central New York to “go green,” and one of the very few businesses in the area to invest in green technologies.
Better boilers
To help save energy as Menorah Park grows, new boilers have been purchased and recently arrived. Expanding its services to provide a better quality of life for its residents and their families will require a lot of money, and, according to Martin, “the time to start saving some is now.”
Martin’s first step is the two new boilers he replaced last year and the two more that just arrived that reclaim energy previously lost up the stack through the condensing factor of the boilers. With an 18 million BTU capacity, the new boilers operate at 95 percent efficiency, saving half of Menorah Park’s fuel cost. So the $20,000 per month it was spending will now be about $10,000, with a seven-year payback on the investment and the added bonus of using cleaner hot-water heating. “The new boilers have also decreased our carbon footprint as they expel less than 10 percent into the atmosphere as opposed to our old units that put out 60 times more.
It’s no longer enough — or prudent — to merely keep pace anymore. “We need to stay ahead of the game,” says Martin. Part of that commitment is putting Menorah Park’s improvements in the hands of local manufacturers and craftsmen. “We’re keeping our business local,” he says. The boilers, for example, are made in nearby Fulton.
And that’s just the beginning of what promises to be some exciting changes at the complex.
Razing the roof(s)
What’s next? Roofs. Menorah Park will replace its roofs with “green” roofs. Part of that technology is capturing rain, allowing the facility to reuse water. In building out The Commons, Menorah Park will create “a nice outdoor area for residents,” says Martin, with a pond, fountains, and a park to stroll around.
Raising the money
In its 100-plus year journey from a 17-room Jewish Home for the Aged into the most comprehensive senior care facility in Central New York, Menorah Park has survived and flourished by its innovation, reputation, and the benevolence of its donors. Menorah Park, through its foundation, hopes to raise money as a way of helping to finance these much-needed and valuable improvements.
The Central New York community, those who used to live here and others who have had family under the care of Menorah Park, have been very generous over the years and we are so deeply appreciative.
All of which means one thing: by investing in its future, Menorah Park of CNY is ensuring it will continue to enhance the lives of those who have contributed so richly to our past.
Victoria Kohl is vice president of The Foundation at Menorah Park. Contact her at vkohl@menorahparkcny.com
After the fire: Gino’s Original Cheese Steaks returns
NORTH SYRACUSE — Gino’s Original Cheese Steaks, known for its Cheese Steak Utica and Belly Filler sandwiches, reopened Wednesday in North Syracuse, less than six
Indiana company enters Syracuse recyling market
DeWITT — Residents and businesses looking to get rid of old appliances and a variety of other recyclable items have a new option since Disposal Alternatives Organization opened its doors about a month ago at 6361 Thompson Road in DeWitt. The Indianapolis–based company is in growth mode and a Syracuse–area location was a perfect fit,
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DeWITT — Residents and businesses looking to get rid of old appliances and a variety of other recyclable items have a new option since Disposal Alternatives Organization opened its doors about a month ago at 6361 Thompson Road in DeWitt.
The Indianapolis–based company is in growth mode and a Syracuse–area location was a perfect fit, says CEO Calvin (Cal) Hultquist. He formed Disposal Alternatives Organization (DAO) with Dana Eveland in 2008.
With just $4,000 and a box truck, the two men launched the business providing home pickup service for unwanted and broken appliances. The business quickly grew — not only in services by accepting a variety of recyclable items from cardboard to metal, but also in size. Today, DAO employs 220 people at nine plants in Chicago, Indianapolis, Nashville, Atlanta, Tampa, Charlotte, Richmond, Rhode Island, and now Syracuse. The company will soon open a 10th location in Pittsburgh.
Hultquist credits the company’s growth to several different factors. First, the business is a social enterprise, a business that addresses a social or environmental need and reinvests its profits back into the community or business. Hultquist describes the business model as a self-sustaining business somewhere between a not-for-profit entity and a for-profit business. The company, which does not receive any sort of government funding, makes all of its money by selling the recyclable materials it collects. This year, Hultquist says gross revenue should be about $30 million.
The other factor behind DAO’s success is that it provides a necessary service and makes it accessible and affordable for people. In most cases, Hultquist says, DAO does not charge customers for the recyclable items they dispose of with DAO. The company charges a small fee for certain items, like televisions, that are a little more complicated to break down before recycling.
“Our model is very unique,” Hultquist says.
In the Syracuse area, the company currently has 12 employees including recycling technicians, general laborers, and truck drivers. “We’ll probably grow upwards of 20 employees” as the business takes off, Hultquist adds. He expects DAO will handle a recycling volume of between 400 and 500 tons of material a month.
Going forward, Hultquist says he hopes to expand the Syracuse–area operations to include programs it offers at its other locations, including community-wide recycling days.
DAO doesn’t really have direct competition in the market, Hultquist says, and the company does its best to work in partnership with other recyclers. Everyone seems to carve out their own niche, whether its appliances like DAO or another product such as electronics. Often, he says, the businesses can work together and the end result is that businesses and residents have all of their recycling needs met.
“We think there’s enough trash to go around for all of us,” Hultquist says. People want to recycle, he contends. It’s DAO’s job to give them that option while keeping it cheap and convenient. “Then we found the participation naturally follows,” he adds.
DAO does not spend any money on marketing, relying instead on word of mouth. The company also drums up interest through being involved in the community and benefits from a national contract with Lowe’s to pick up customers’ old appliances after new ones are delivered. DAO has a similar contract with appliance-manufacturer Haier.
“The formula’s working, and we’re creating jobs,” Hultquist says. “As long as it keeps working, we’re going to keep growing.” There are plenty of areas across the nation in need of good recycling providers, he says.
Headquartered in Indianapolis, DAO is online at www.daorecycling.org.
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