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FEBRUARY 9, 2015 I SOUTHERN TIER BUSINESS JOURNAL I 1TGBBJ.COM

BRIEFS 2

EVOLUTION CONSULTING STORY 5

PEOPLE ON THE MOVE 6

SOUTHERN–TIER DEMOGRAPHICS 2

THE LIST 7

n INDEX:

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People on the Move News: Southern Tier new hires and promotions. Page 6.

VOL. 8 I No. 1 I FEBRUARY 9, 2015 I $2.50TGBBJ.COM

The List: Southern Tier Colleges & UniversitiesPage 7.

PAGE 4CORNING NATURAL GAS BETS BIG ON RISING DEMAND

Covering the Southern Tier

S O U T H E R N T I E R

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PAGE 3

Mountain Fresh Dairy opens kosher facility

Mountain Fresh Dairy opens kosher facility

Gary Bensley, plant manager for the new Mountain Fresh Dairy located in the former Crowley building in Binghamton, anticipates starting operations in the first quarter of this year. The facility will only produce Cholov-Yisroel kosher products.EVOLUTION CONSULTING POISED

FOR GROWTH

PAGE 5

SOUTHERN TIER COLLEGES & UNIVERSITIESRanked by Full-Time Enrollment, 2014-2015

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http://www.nysif.com/reportfraud

2 I southern tIer busIness journal I February 9, 2015tgbbj.com

CORNING —The Rockwell Museum, a community center and museum housed in Corning’s Old City Hall, has hired Kirsty Buchanan as curator of collections.

Buchanan, who brings 14 years ex-perience in fine-arts management, will oversee the curatorial department and associated responsibilities, according to a news release from the museum. She will also participate in both short and long-term planning for the Rockwell and

will provide leadership through her spe-cialized knowledge of American art.

Buchanan was previously managing director of the Western Art department for Heritage Auctions, Inc., which is based in Dallas and calls itself the world’s largest collectibles auctioneer. There, she co-directed the largest fine-art auc-tion in the company’s history. Under her guidance, the department established new world auction records for a variety of Western and American artists, the re-lease stated.

Buchanan earned her master’s degree in art history from Southern Methodist University in Dallas.

The Rockwell Museum hires Buchanan as curator of collections

Coming Up:next issue: march 23, 2015

Next Issue’s List: Hotels and Conference Centers

may 4 issue:

Top Ranks List: Manufacturers

June 22 issue:

Top Ranks List: Chambers of Commerce

August 10 issue:

Top Ranks List: Highest-Paid Occupations

September 21 issue:

Top Ranks List: Largest Employers

october 26 issue:

Top Ranks List: Nonprofits

December 7 issue:

Top Ranks List: Credit Unions and Banks

NBT Bank net income edges up 3 percent in Q4

NORWICH — NBT Bancorp Inc. (NASDAQ: NBTB) reported net income of $18.5 million in the fourth quarter, up more than 3 percent from $17.9 million in the year-earlier period.

Earnings per share edged up to 42 cents from 41 cents a year prior. That missed analysts’ expectations by 2 cents, according to Briefing.com data provided through Yahoo Finance.

NBT reported its earnings on Jan. 26.The banking company’s core net income in the

fourth quarter — excluding a gain on the sale of an equity investment, prepayment penalties on a long-term debt restructure, merger expenses, securities gains, and other items not considered core to its operations — totaled $18.5 million. That’s up from $18.4 million for the same period in 2013, NBT said. Core earnings per share were unchanged at 42 cents.

NBT Bancorp is a financial holding company headquartered in Norwich, with total assets of $7.8 billion as of the end of 2014. The company primar-ily operates through NBT Bank, N.A., a community bank, and through two financial-services firms. NBT Bank has more than 155 branches spread across upstate New York, northeastern Pennsylvania, northwestern Vermont, western Massachusetts, southern New Hampshire, and southern Maine.

NBT ranks second in deposit market share in the 16-county Central New York area, with $2.5 billion in total deposits and a 9.6 percent share of total market deposits, according to the latest FDIC data, as of June 30, 2014.

STBJ Data & Details

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Adam [email protected]

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STBJ briefs

norman [email protected]

Snapshot of the Southern Tier population

Snapshot of the Southern Tier population

Broome Chemung Chenango Tioga Tompkins Population estimate, 2013 197,534 88,506 49,503 50,243 103,617 Population change April 1, 2010 to July 1, 2013 -1.5% -0.4 -1.9% -1.7% 2% High school graduate or higher (percent of persons age 25+) 89.6% 88.8% 86.7% 90.9% 93.1% Bachelor’s degree or higher 26.1% 21.5% 17.1% 24.1% 49.3% Veterans, 2009-2013 14,650 7,742 4,096 4,423 4,764 Mean travel time to work (minutes) 18.7 19 22.7 23.5 19 Housing units, 2013 89,686 38,268 24,550 22,087 41,802 Homeownership rate, 2009-2013 66.5% 67.4% 75.6% 79.5% 56.3% Median value of owner-occupied housing unit $107,900 $94,300 $90,600 $108,400 $169,200 Households, 2009-2013 79,763 35,622 19,829 20,202 38,409 Per capita money income in past 12 months $24,835 $25,329 $22,097 $27,230 $27,418 Median household income $45,958 $48,804 $43,941 $55,726 $51,393 Persons below poverty level 17.4% 15.7% 15.5% 9.3% 20.5% Private nonfarm establishments 4,265 1,814 925 812 2,341 Private nonfarm employment 72,810 32,534 12,672 11,201 46,558 Private nonfarm employment, percent change, 2011-2012 1.8% -2.7% 9% -1.4% 2.2% Source: US Census Bureau

Employment Arena

Broome Chemung Chenango Tioga Tompkins Unemployment rate, as of December 2014 6.1% 5.7% 5.9% 6.0% 3.5% Average annual wage $38,632 $42,453 $39,207 $46,483 $45,611

Source: US Census Bureau

Employment Arena

Broome Chemung Chenango Tioga Tompkins Unemployment rate, as of December 2014 6.1% 5.7% 5.9% 6.0% 3.5% Average annual wage $38,632 $42,453 $39,207 $46,483 $45,611 Average employment for all industries 88,126 26,814 17,540 12,785 49,888 Source: New York State Department of Labor, Quarterly Census of Employment and Wages

Pull Out Stat: 3.5% Unemployment rate in Tompkins County, the lowest of all 62 counties in New York State

3.5%Unemployment rate in Tompkins County, the lowest of all 62 counties in New York State

Employment Area

Source: New York State Department of Labor, Quarterly Census of Employment and Wages

Southern Tier Demographic ProfileBY Nicole [email protected]

With the addition of Tompkins and Chemung counties to the Business

Journal News Network’s reach in the Southern Tier, here is a rundown of how these five counties compare in various population, employment, and demo-graphic measures.

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February 9, 2015 I southern tIer busIness journal I 3 tgbbj.com

Mountain Fresh Dairy opens kosher facility in BinghamtonBY norman [email protected]

BINGHAMTON — The former landmark Crowley (H.P. Hood) dairy manufacturing facility on the south side of Binghamton is poised to reopen under the corporate name Mountain Fresh Dairy LLC (MFD).

The plant, which had been shuttered for two years, will operate as a 100 percent Cholov Yisroel facility. The designation of Cholov Yisroel meets the highest standards of kosher supervision, including watching the dairy herds to ensure that no milk from non-kosher animals is mixed with the milk from kosher animals.

Why are the principals investing now in an industry that is highly competitive, when Americans drink nearly 40 percent less milk per-capita today than in 1970, and at a time

when there is an overabundant global supply and falling prices?

For MFD, the answer is simple — rising demand in a niche market and consumer complaints about the freshness of Cholov Yisroel milk. The primary consumers of Cholov Yisroel products are ultra-Orthodox Jews concentrated in major cities along the Eastern Seaboard. A new analysis by the Pew Research Center found that 27 percent of all Jews in America who are younger than 18 live in orthodox households. Of those classified as orthodox, 70 percent designated themselves ultra-orthodox. A separate study in 2012 by the United Jewish Appeal–Federation of New York reported that 60 percent of Jewish children in the five boroughs of New York City live in orthodox homes. STBJ estimates that the Orthodox Jewish community in America today num-bers 500,000 to 600,000 people.

A growing populationThe Pew study also cited exceptionally

high birth rates for Orthodox Jews. While the general U.S. population delivers 2.2 births per family, Orthodox Jewish parents average between seven and eight children per family. The compounded birth rate of Orthodox Jews is best exemplified by an Israeli rabbinic leader — Yosef Shalom Elyashiv — who, at his death in 2012, was reported to have more than 1,000 living de-scendants. The community’s explosive birth

rate, coupled with only a small percentage of Orthodox Jews who leave the faith, suggests a growing population and continued demand for Cholov Yisroel products, which carry a premium price. Consumers in major cities can expect to pay 50 cents more per gallon for Cholov Yisroel than for Cholov stam, ko-

sher milk that does not require supervision at the dairy farm. (On Dec. 28, 2014, a quart of stam-kosher milk cost $1.09 at Wegmans in Syracuse; a quart of Cholov Yisroel in New York City kosher supermarkets sold

See dairY, page 6 4

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Gary A. Bensley, plant manager for the new Mountain Fresh Dairy located in the former Crowley building in Binghamton.

“First cow: Where is the best place to store milk? Second cow: In the cow, because it never spoils there.

-Old Jewish joke.

“

http://www.tiogabank.com

4 I SOUTHERN TIER BUSINESS JOURNAL I FEBRUARY 9, 2015TGBBJ.COM

BY NORMAN [email protected]

CORNING — America is awash in natural gas. The country is pumping out 80 billion cubic feet a day, more than one-quarter of America’s energy mix, to feed our energy demands.

A substantial drop in price since the shale boom has elated both commer-cial and residential con-sumers. Furthermore, the discovery of giant natural-gas fields in states such as Texas, Louisiana, Ohio, West Virginia, and

Pennsylvania ensure a long-term supply of this energy source, con-firmed in December 2014 by the Energy Information Administration, which noted an increase of 10 percent in U.S. gas reserves just in the past year.

Before you don your party hat to cel-ebrate, however, note that a shortage of pipeline in our nation’s delivery system still exists. With 300,000 miles of underground transmission lines and 2.4 million miles of distribution pipes, U.S. gas utilities currently serve 68 million households and 5 million commercial enterprises. That still leaves mil-lions of homes and businesses not served by natural gas.

For entrepreneurs, every challenge is an

opportunity.“This is the right time to convert a small,

local gas company into a regional player,” says Michael I. German, president and CEO of Corning Natural Gas Corp., Inc., a sub-sidiary of the Corning Natural Gas Holding Corp. (OTC: CNIG).

He lays out the case like this. “Corning is the smallest, publicly traded gas util-ity in America, with nearly 450 miles of mains, that sells or transports gas to ap-proximately 15,000 customers in 23 towns and villages over 400 square miles of New York state’s Southern Tier. Corning Gas has served this [franchise] area since 1904 … What changed was the development of fracking in the Marcellus Shale area just across the border in Pennsylvania,” German continues. “Couple this development with the announcement in early December by the Federal Energy Regulatory Commission approving Constitution Pipeline company’s proposal to build a 124-mile, 30-inch, natural-gas transmission line from the fields near us to Schoharie County, which opens up virgin territory either underserved or not served by gas. The new pipeline will connect with the Iroquois Pipeline, [thus] enhancing New York state’s gas supply … The availability and price of natural gas make new gas fran-chises very competitive with the traditional energy sources such as oil, propane, and electricity.”

Corning Natural Gas’s strategy is to grow

both the franchised business and the new territory. “Corning’s traditional-utility (fran-chised) business currently serves about 12,500 residential and 2,500 commercial cus-tomers,” notes German. “Corning also pro-vides gas delivery and transportation services to other utilities such as NYSEG (New York State Gas & Electric) in Elmira and BEGWS (Bath Electric Gas & Water Systems) in the village of Bath, as well as major manufactur-ers including Corning, Inc., Kraft, World Kitchen, and Dresser-Rand. While its fran-chised area hasn’t expanded, the area is doing well economically, and Corning has launched major expansion efforts through-out our existing service area with new cus-tomers in places like Hammondsport, Virgil, and the town of Bath.”

Territorial expansionCorning Natural Gas’s president points

out that while the traditional utility is enjoy-ing growth, the real growth will come from expanding into new territories.

“Joe Mirabito, the CEO of Mirabito Holdings [headquartered in Binghamton], called me up back in 2010 and asked if Corning Natural Gas were interested in a joint venture to sell natural gas to municipali-ties, residences, and businesses in the Twin Tiers (an area that borders both Northern Pennsylvania and Southern New York),” says German. “Our [subsequent] conversa-tions made it clear that our companies were a good fit. Mirabito brings decades of expe-rience in the energy business to the table, knows the territory well, is very familiar with major potential customers, and can handle all of the back-office requirements. Corning Natural Gas is very familiar with the regu-latory side, constructing and maintaining pipeline, operations, and managing the gas supply.”

Gearing up for growth has required sub-stantial capital investment. Since 2007, the company has issued five new-equity offer-ings raising about $16.5 million. During the same period, Corning Natural Gas raised $29 million in new debt that has both refi-nanced old debt at a lower interest rate and funded new construction and an aggressive, 10-year infrastructure upgrade of pipe, ser-vices, and other equipment. Corning Natural Gas also invested in information technology by installing new financial-reporting/general-ledger and customer-information systems and made the decision to bring the manage-ment of storage and transportation in-house. Two other major efforts included creating the holding company in July 2013 and secur-ing an ample and dependable gas supply with Talisman Energy Inc. (NYSE: TLM), a global, energy company headquartered in Calgary, Alberta (Canada).

Leatherstocking Gas In November 2010, the Corning Natural

Gas Holding Corp. joined with Mirabito Regulated Industries, LLC to form two new ventures called Leatherstocking Gas Co., LLC and Leatherstocking Pipeline Co., LLC to provide natural-gas distribution to unserved and underserved regions of New York state and the Northern Tier of Pennsylvania. (Leatherstocking Pipeline is an unregulated company set up to serve one customer in Lawton, Pa.) Corning Natural Gas and Mirabito each owns 50 percent of the Leatherstocking companies.

Leatherstocking Gas currently has long-term franchises in Broome, Chenango, Delaware, and Otsego counties in New York

(the towns and villages of Sidney, Bainbridge, Windsor, Delhi, and Unadilla) and in 16 boroughs and townships in Bradford and Susquehanna Counties in Pennsylvania.

On Oct. 1, 2013, Leatherstocking turned on the natural gas in Bridgewater Township, Pennsylvania, thus inaugurating its first service. “This project initially involved lay-ing 6 miles of plastic pipe to the Endless Mountains Hospital and the Montrose Junior and Senior High School,” asserts German. “Leatherstocking’s strategy is to identify major consumers of gas and run the pipeline first to them. This establishes a cash flow that lets us build [feeder] lines to other custom-ers in the area.

During 2014, Leatherstocking built out its Bridgewater and Montrose distribution sys-tem as well as a new system in Dimock and linked more than 150 customers to its gas lines. In March 2014, Constitution Pipeline and Leatherstocking made a joint announce-ment to install four delivery taps along the proposed 124-mile transmission line for local distribution. One of those taps will provide service to the Amphenol Aerospace plant in Sidney. Now that the pipeline route is con-firmed, Leatherstocking is analyzing possible locations for the remaining taps. This project provides Leatherstocking with the backbone to extend the development of natural-gas distribution franchises in rural communities along the route. The key to our expansion is to answer the basic question: How much do we spend to get a customer?”

To achieve its goals, Corning Natural Gas is engaged in a delicate balancing act of push-ing substantial change while simultaneously growing the company’s assets and earnings significantly.

“To meet our goals, we committed $7 million in 2014 to upgrade our existing distribution system by replacing aging pipe, and Leatherstocking spent around $5 million to lay new pipe and for operations,” says German. (Corning Natural Gas’s infrastruc-ture is comprised between 75 percent and 80 percent of plastic or protected steel pipe. The system contains no cast-iron pipe.)

“The upgrade program requires another $4 million annually through 2017. In addi-tion to our stock offerings to attract equity, Corning Natural Gas has established loans with M&T Bank for around $10 million and a line-of-credit with Community Bank for $8 million. Leatherstocking has a loan from Five-Star Bank for $4 million. Going forward, debt retirement is projected at about $2 mil-lion annually through 2018 with a $5 million payment due in 2019. In order to fund our projected growth, the company will need to obtain additional equity and/or debt financ-ing,” he adds.

Historically, Corning Natural Gas’s com-petition in its residential markets has been primarily from “… electricity for cooking, heating water, and clothes drying, and to a small degree, electricity, fuel oil, and propane for heating,” says German. “The price of gas remains low in comparison to alterna-tive fuels in our service territory and our competitive position in the residential, com-mercial, and industrial markets continues to be strong. Over 90 percent of our residential customers heat with gas. As we expand our distribution system to attract new customers, our principal competition is oil and propane. Corning and Leatherstocking face potential competition from other gas utilities, but they mostly focus on major metropolitan areas, not rural America. Some have suggested that

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BY NORMAN [email protected]

BINGHAMTON — Background checks for employment and medical-fraud avoidance purposes are a hot topic.

The U.S. Equal Employment Opportunity Commission has brought suit for the im-proper use of background checks of employ-ees against high-profile defendants such as BMW North America and Dollar General.

Attorneys have also brought class-action law suits against employers that fail to fol-low the requirements of the Fair Credit Reporting Act (FCRA). Recent settlements of FCRA alleged violations include K-Mart, which agreed to pay more than $3 mil-lion; US Xpress, which paid $2.75 million; Domino’s Pizza, which paid $2.5 million; and Swift Transportation, which paid $4.4 million to settle the claims of 10,000 applicants seek-ing employment. Whole Foods and Disney are contesting their suits.

The rash of law suits has captured the attention of employers, who are not only concerned that they have to conduct these investigations to protect against accusations of an “unsafe workplace,” but also have to conduct them in a manner that complies with strict federal and state regulations.

The legal exposure of all employers is a bonanza for agencies such as Evolution Consulting, LLC (Evolution), headquartered at 49 Court St. in downtown Binghamton. Founded in 1994 by Anthony (Tony) P. Elwood, Evolution began as a one-man spe-cialty drug-screening and background-inves-tigation firm.

“Tony started this business in his home,” says Tia Allen, the company’s vice president of operations. “Early on, he used to drum up [drug-screening] business by watching trucks drive down the street and recording the [company’s] contact information. His more than two decades of training and ex-perience in law enforcement with the New York State Police were instrumental in grow-ing the business.

“The company grew rapidly beginning in 2009 when it expanded into the medical-fraud area. In 2011, Elwood created his sec-ond corporation — OIG Compliance Now, LLC. (OIGCN) — as a third-party adminis-trator to help health-care employers prevent Medicaid/Medicare fraud in their organiza-tions and to protect themselves against the loss of reimbursements from government health-care programs.

Today, the two companies employ 45 peo-ple in one location at the Metro Center where they lease about 9,000 square feet. Both firms are privately owned. The Business Journal estimates that the companies gener-ate about $5 million annually in consolidated revenue. Evolution and OIGCN together serve several hundred clients.

Background checksThe idea of negligent hiring dates back

to 1908 when the legal precedent was es-tablished that employers have an affirma-tive duty to provide a safe workplace. The concept included the hiring and retaining of safe employees. It wasn’t until the late 1970s, however, that negligent-hiring claims became common as a cause of action in cases of workplace violence. Employers

soon learned to screen not only employees, but also prospective business partners, ven-dors, board members, and even volunteers. Background checks also became highly regulated with the passage of the FCRA in 1970, which was followed by myriad fed-eral and state rules. The law now provides consumers with a number of provisions to protect their privacy rights, including not just the obtaining and use of information but also the distribution of this information by consumer-reporting agencies.

“It’s no surprise, then, that background-checking in the workplace has exploded in the last 10 years,” says Allen, “with employ-ers finally realizing that the cost of these background checks is small when compared with exclusion from reimbursement and defending a law suit plus paying damages, fines, and penalties. Since 9/11, the threat of terrorism [by a lone wolf] has only added to employers’ concerns. Background screen-ing is here to stay, and it’s not just for sensitive or high-level positions; it’s for ev-erybody, including minimum-wage workers and volunteers.”

The National Association of Professional Background Screeners estimates that the industry’s revenues are in the multi-billion-dollar range. Evolution’s first big contract was with Ascension Health — a leading voice for Catholic health care in the U.S. that employs 330,000 health-care associates nationwide.

Evolution offers a menu of services from which clients can choose. “Pre-employment background checks include Social Security number verification, criminal and civil records search, government-watch search, sex-offend-er registry check, military DD214 verification, professional licenses, references, verification of education and employment, and compre-hensive sanction screening,” says Allen. “A la carte services include specialty criminal searches (e.g., state police criminal records), e-verify (memorandum of understanding), motor-vehicle record search, financial/credit profile, international background checks, edu-cation GPA verification, international degree verification and equivalency, and corporate-criminal investigations. However, we do not conduct private investigations (e.g., matrimo-nial or property disputes).”

Evolution has added other services, such as professional caregiver/nanny checks, tenant-screening for property managers, and DNA paternity testing. Every health-care background check includes OIGCN sanctions screening and validation.

Evolution attracts clients from the corpo-rate world, professional organizations, edu-cational institutions, and anyone else who has exposure as an employer.

Sanctions screeningFraud perpetrated against government-

sponsored, health-care programs is ram-pant. Estimates just for Medicaid fraud range as high as $70 billion annually. “The Department of Health and Human Services Office of Inspector General (OIG) has a mis-sion to root out fraud, waste, and abuse in the department’s programs,” asserts Allen. “The OIG has the authority to exclude in-dividuals and entities from participating in federally funded programs, including Medicaid, Medicare, the State Children’s

Health Insurance program, and all federal, health-care programs.

Any conviction for program-related crimes, health-care fraud, patient-abuse, fail-ure to repay [Health Education Assistance] loans, fraud against non-health-care pro-grams, license suspension or revocation, and a misdemeanor health fraud are all grounds for exclusion. No payment for any items or services can be made to an excluded provider under these programs. Submitting any claims in which any portion is attributed

to an excluded individual or entity can be considered fraudulent and subject to strict monetary penalties.

The burden for compliance is squarely on hospitals and other health-care provid-ers. To compound the problem, they must review not only federal lists of excluded parties but also lists from multiple states. It’s no surprise that sanction-screening re-quirements are a high priority now for

Evolution Consulting poised for growth

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SEE EVOLUTION, PAGE 7

Corporate Office: 860 Hooper Road Endwell, NY 13760 607-231-6600

Vernon: 4873 NYS Route 5 Vernon, NY 13476 315-953-4200

Chevy Chase: 2 Wisconsin Circle, Suite 820 Chevy Chase, MD 20815 301-718-0080

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ENGINEERS, ARCHITECTS, & LAND SURVEYORS

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Tia Allen, vice president of operations at Evolution Consulting and OIG Compliance Now in Binghamton, anticipates substantial growth in 2015. The companies specialize in back-ground checks and sanctions screening for government health-care programs.

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banking & finance

SEAN M. PASS has joined the commercial banking group at M&T Bank in Binghamton, recently entering M&T’s relation-ship-management sales program. He received an associate degree from SUNY Broome Community College, be-fore going on to earn a bachelor’s degree in business administration from SUNY Buffalo. Pass most recently served as a su-pervisor for GEICO Insurance in Buffalo.

education & training

Binghamton University announced that GLORIA E. MEREDITH, dean of the College of Pharmacy and professor of pharma-ceutical sciences at Rosalind Franklin University of Medicine and Science in North Chicago, will become the founding dean of Binghamton University’s School of

Pharmacy and Pharmaceutical Sciences. She was appointed founding dean at Rosalind Franklin in 2009, and has held academic appointments at four medical schools and universities over the past 26 years. A biomedical researcher active in clinical education, Meredith holds bache-lor’s and master’s degrees in biology from Southern Methodist University and a doc-torate in neuroscience from Georgetown University School of Medicine.

health care

RONALD A. PATTI, JR. has been hired as the new administrator of United Methodist Homes’ James G. Johnston Memorial Nursing Home at the Hilltop Campus in Johnson City. He earned a bachelor’s degree from Spurgeon College in Lakeland, Fla. and completed the 120-CEU long-term care nursing home administration program at Marywood University. Patti has more than 20 years experience as a nursing-home adminis-trator, most recently at Ware Presbyterian Village in Oxford, Pa. He has also served

in various capacities as a member of the Pennsylvania Health Care Association.

law

Hinman, Howard & Kattell, LLP announced that RYAN M. MEAD has become a partner. Mead joined the firm as an as-sociate in the fall of 2007 in its Binghamton office. He is a member of the business and corporate law, trusts and estates, taxation, and not-for-profit practice groups. Mead has several years of experience assisting businesses of all sizes. He received his J.D./M.B.A. from the University at Buffalo in 2007 and is admitted to practice before all New York state courts, all New Jersey state courts, all Pennsylvania state courts, the United States tax court, and the federal district court for the Northern District of New York and the federal district court for the District of New Jersey. n

People on the move NEWS

Pass

for $1.59.)“We’ll start production with liquid milk

and water, and over time, add hard cheeses, Greek yogurt, cottage cheese, and sour cream. Longer-term, we’re considering pro-ducing ice cream, juice drinks, and yogurt drinks. I expect to start production of milk at 3,500 gallons per-hour and grow from there. In anticipation of expanding produc-tion, we have already purchased a larger pasteurizer … The principals chose this plant because it was designed for milk pro-duction, was reasonably priced, and located close to a number of local farms to ensure both a steady supply and quality control of the product. There are a number of dairy-farm options within a one-hour drive which maintain high [quality] standards.” says Gary A. Bensley, the plant manager for the facility.

Bensley escorted the author of this article on a tour of the manufacturing facility. “The building has four floors and contains about 70,000 square feet,” notes the plant manager. “When Hood closed the plant in 2012, every-thing was sold at auction, which meant we had to rebuild all of the pipes, tubing, electrical wir-ing and fixtures, and purchase the machinery necessary to operate. When the facility ramps up to full production in 2½ to 3 years, we should employ between 85 and 90 people.”

According to a 2013 application for gap-financing filed by MFD with the Binghamton Local Development Corp. (BLDC), the total cost of the project was estimated at $3.5 million. The applicant requested a $200,000 loan from the BLDC to buy ma-chinery and equipment and planned to re-quest another $200,000 from the Broome County Industrial Development Agency (BCIDA). The principals had already ex-pended $150,000 in April 2013 to buy the plant at auction and committed the balance in personal equity to buy new and used equip-ment. Bank of America had agreed in 2013 to provide $1 million for equipment leasing as part of the financing package.

The BLDC granted a seven-year amorti-zation at the Wall Street Journal prime rate

in effect upon board approval, but not less than 4 percent. Two of the three principals issued unlimited, personal guarantees for the loan plus $200,000 life-insurance policies for the term of the loan. The furniture, fixtures, equipment, and all remaining assets funded through the two public agencies were also pledged with the BLDC and the BCIDA sharing first interest through an inter-credi-tor agreement.

The BLDC loan also required MFD to create a few jobs for individuals in the U.S. Housing and Urban Development de-fined low-moderate income categories. In addition to the low-cost loans, the principals were recipients of New York State Excelsior tax credits over a 10-year period. (The Excelsior program grants tax credits for job creation, investments, research and devel-opment, and real-property.)

The three principals of MFD are the president, Ze’ev Rothschild, Nathan Hassan, and Norman Rausman. “Ze’ev knows this market best,” affirms Hassan. “He owns three kosher supermarkets (NPGS, known locally as the Co-op) in the Lakewood [New Jersey] area, so he is [both] close to the consumers and very aware of the pricing and problems of Cholov Yisroel products.

“We are still reviewing our distribution channel, which includes conversations with DMS (Dairy Marketing Services) in Syracuse and with other milk distributors who have expressed a strong interest in purchasing our dairy products. Our cus-tomers are located primarily in the New York [City metropolitan] region and in cities such as Boston, Philadelphia, Baltimore, Atlanta, and Miami. The Binghamton plant will produce only Cholov Yisroel products, which gives MFD a competitive edge in su-pervision over those competitors who run both Cholov Yisroel and stam milk.” Hassan added that, at the time of our interview, MFD had not yet selected the organiza-tions which would offer supervision of the process.

Other milk producers have already staked

out the Cholov Yisroel market. Golden Flow Dairy Farms, Inc., located in Brooklyn, was founded in 1948 and currently has a 55 percent share. Fresh and Tasty has a 22 per-cent share; Pride of the Farms in Baltimore, a nonprofit corporation which sells its milk mainly to yeshivas around the country, a 12 percent share; and Devash Dairy Farms, Inc., also of Brooklyn, an 11 percent share.

Bensley earned his bachelor’s degree in business administration at Alfred State College. He has decades of experience in the dairy and food industry managing multi-mil-lion dollar operations. Bensley has acquired experience in production, sales, distribution, mergers, and acquisitions, human resources, quality control, supply-chain management, construction, labor relations, and administra-tion. Formerly, he was the vice president and general manager of Crowley Foods & National Dairy Holdings in Lancaster, Pa., with responsibility for operations and distri-bution for five dairy plants.

The MFD manufacturing plant was built in 1915, when J.K. Crowley moved his com-pany from Poughkeepsie to Binghamton. In 1983, Crowley Foods sold the operation for $16.4 million to a Dutch–based firm. In 2001, National Dairy Holdings bought the company for $400 million and turned around three years later to transfer the title to the H.P. Hood Company. The terms of the deal were not released. MFD incorporated on March 4, 2013.

The principals of MFD understand that they are entering a highly competitive niche market, which has limited demographic and geographic distribution potential. The principals also understand that there are a limited number of distributors and that plant operations will take several years to reach peak production. Any concerns about a start-up operation, however, are offset by the selection of experienced personnel to run the plant, a strong financial position, a keen understanding of the retail marketplace for Cholov Yisroel products, and the strong, long-term-growth trend line of the niche market. n

Leatherstocking is using a Sam Walton strategy that keeps us under our competitors’ radar.”

Key statisticsCorning Natural Gas currently has about 300

shareholders, and its stock-trading activity over the counter is limited and sporadic. The five larg-est stockholders — German, Gabelli Funds, the Zucker Trust, Mitchell Partners, and the Mirabito family — control 61 percent of the shares.

The current market-capitalization is more than $50 million. The share price closed at $20 on Jan. 29. The stock has traded in a range between $17 and $25 over the last year.

Corning Natural Gas has no off-balance-sheet arrangements. At year-end 2014, the company had 2.45 million shares outstanding.

Corning Natural Gas is headquartered at 330 W. William St. in Corning. The company headquarters building sits on 7 acres. Corning Natural Gas employs 58 people and generates about $25 million in annual revenue. The leader-ship team includes German; Firouzeh Sarhangi, CFO and treasurer; Matt Cook, vice president of operations; Russ Miller, vice president of gas supply and marketing; and Stanley Steve, vice president of administration. Freed Maxick CPAs, P.C., which has four offices in Western and Central New York, handles the company’s accounting; Welch & Zink Attorneys of Corning advises on real estate and contracts; and the law firm, Nixon Peabody LLP of Rochester handles corporate governance and regulatory matters.

Mirabito Holdings, Inc. is a family-owned enterprise that provides energy products to homes and businesses throughout upstate New York and in Pennsylvania. The Business Journal News Network estimates the holding compa-ny’s annual revenue at $450 million. The energy-products business includes heating oil, propane, natural gas, coal, gasoline, diesel fuels, kerosene, lubricants, and a complete line of home-heating equipment, installation, and service. The holding company also owns and operates 74 Quickway Food Stores, Mirabito Stores, Manley’s Mighty Marts, and Convenience Express locations throughout Central New York and the Southern Tier. Mirabito Regulated Industries, LLC (MRI) was incorporated in April 2011 as an affiliate of Mirabito Natural Gas, LLC, and MRI owns 50 percent of the two Leatherstocking compa-nies. Mirabito Holdings owns approximately 9 percent of the outstanding shares of Corning Natural Gas Corp. Joseph Mirabito, the CEO of Mirabito Holdings and MRI, and his cousin, William Mirabito, a vice president of Mirabito Holdings, Inc. and MRI, have been directors of the Corning Natural Gas Holding Corporation since its organization in 2013. Mirabito Natural Gas, LLC applied for a Pennsylvania natural-gas, supplier license in 2012.

Opportunities“There is no end to the [business] opportuni-

ties for years to come,” German concludes, “but we have to do it right. Corning Gas is certainly looking for growth — prudent growth — but we have to be careful not to overextend.” The effort by Corning Natural Gas to become a regional player is certainly a challenge, but one that German, a guy who has scaled the 46 high peaks of the Adirondacks, is confident the com-pany can achieve. n

Mead

DAIRY: Other milk producers have already staked out the Cholov Yisroel market. Continued from page 3

GAS: Corning Natural Gas currently has about 300 shareholders

Continued from page 4


THE LISTResearch by Nicole [email protected](315) 579-3911Twitter: @cnybjresearch

Now surveying for Hotels and Conference & Meeting Facilities for

the next issue, out on March 23. Email [email protected] for a survey

ABOUT THE LISTInformation was provided by representatives oflisted organizations and their websites. Other groups may have been eligible but did not respond to our requests for information. Organizations had to complete the survey by the deadline to be included on the list. While The Business Journal strives to print accurate information, it is not possible to independently verify all data submitted. We reserve the right to edit entries or delete categories for space considerations.

WHAT CONSTITUTES THE GB REGION?For this list, Greater Binghamton includes Broome, Chemung, Chenango, and Tioga counties.

NEED A COPY OF A LIST?Electronic versions of all of our lists, with addi-tional fi elds of information and survey contacts, are available for purchase at our website: cnybj.com/ListResearch.aspx

WANT TO BE ON THE LIST?If your company would like to be considered for next year’s list, or another list, please email [email protected]

EVOLUTION: Both firms are thriving in a highly competitive field Continued from page 5

SOUTHERN TIER COLLEGES & UNIVERSITIESRanked by Full-Time Enrollment, 2014-2015

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$3,811.4 $30,910 8,975 David J. Skorton, President 1865

2.�&*$%�)/+*��*&1"-.&/3P.O. Box 6000Binghamton, NY 13902(607) 777-2171/binghamton.edu

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$271 $6,170 1,650 Harvey G. Stenger, President 1946

3.�/%� ��+(("$"953 Danby RoadIthaca, NY 14850(607) 274-8000/ithaca.edu

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6.��"(%&454 Delhi DriveDelhi, NY 13753(800) 96-DELHI/delhi.edu

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7.�()&-��+(("$"One Park PlaceElmira, NY 14901(607) 735-1800/elmira.edu

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$68.1 $36,600 306 Ronald O. Champagne, President 1855

8.��1&.��+(("$"400 Riverside DriveJohnson City, NY 13790(607) 729-1581/davisny.edu

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10.�),&-"��/�/"��+(("$"��&*$%�)/+*44 Hawley St., Fifth FloorBinghamton, NY 13901(607) 721-8651/esc.edu/central-new-york/

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$99.7 $6,170 NA Merodie Hancock, PresidentNikki Shrimpton, Central New York

Center Dean

1974

tions and institutions with both the Centers for Medicare and Medicaid Services and in-dividual states mandating monthly screen-ings. OIGCN sanction-screening services help clients develop a proactive approach to screening compliance so that when they are audited, they can avoid fines/penalties,” Allen continues.

OIGCN’s target clients include hospitals, physician practices, senior-living centers, home-health-care agencies, educational institutions, clinical laboratories, third-party billing companies, durable-medical-equipment companies, hospice facilities, ambulance suppliers, pharmaceutical/bio-logic/device manufacturers, government agencies, and other providers of health-care products and services. Evolution and OIGCN have clients across the U.S., Canada, Puerto Rico, and the Virgin Islands.

Technology“Technology has increasingly become

integral to the screening business,” notes Allen. “You need enterprise-level software that can integrate with multiple databases, including client and vendor platforms. This is no longer a manual, fax-based process with people handling a lot of paper. We want to develop software and systems that truly meet the needs of our clients and supersede what is available by the gov-ernment alone. OIGCN researches and updates more than 300 screening sources on a weekly basis. We have invested more than $500,000 to develop and maintain our proprietary software and systems. To give you an idea of the size of the health-care

fraud problem, we currently store 425,000 names of excluded parties in our secure database. We have embraced technology not only to manage the volume of data to be screened for excluded individuals but also to make the process easier for our clients.

For example, we have the capability to screen a list of 30,000 names and complete our investigations in five business days. For Evolution clients, we just developed an online consent form that has forced fields and even includes the capability for the applicant to provide a ‘wet’ signature using a computer mouse or a finger on a smart phone. But it’s not just about the ma-chine technology; there is also the human technology. We need to develop employees who exhibit a variety of traits: They must be persistent, cooperative in solving problems, capable of determining the truth, adept at research and detail oriented, committed to continual learning, and enjoy talking on the phone. This is one of those industries where you have to be on the job to learn it … All of our training is done internally with our own investigators and technicians,” Allen continues.

CompetitionEvolution and OIGCN are thriving in a

highly competitive field. “There are a number of national [and

even international] firms that offer back-ground checks and act as third-party administrators for sanction screenings. Names like PreCheck, GoodHire (10,587 clients), Pinkerton (founded in 1850), PrivateEyes, MBI [Worldwide], Amrop (84

offices in 56 countries), and HireRight [Has 45,000 customers including one-third of the Fortune–500 companies] come to mind,” Allen says. “What makes us unique is that we are a licensed, private-investigative firm that also completes sanction-screening. It’s not enough just to gather large volumes of data; you have to have the investigative culture to know what to do with it. That’s what lets us utilize our technology, tools, and huge data repository to provide accu-rate information to help guide our clients in making intelligent hiring decisions. Add to this our accurate and timely reporting; our knowledge of compliance; competitive pricing; and outstanding customer service: That’s how we compete.”

Elwood, 61, the CEO of Evolution, spent more than two decades with the New York State Police before he retired. Among his responsibilities as a trooper, he was a cer-tified drug-recognition expert capable of detecting drugs and alcohol in a person’s system through observation only, without the need for any type of chemical test. He is a licensed, private investigator who has multiple certifications. Elwood attended Broome Community College, majoring in psychology with a minor in sociology.

Allen, 46, was born in Endicott. She received her bachelor’s degree in chemis-try from Canisius College in 1990, a mas-ter’s degree in chemistry from Princeton University, and has completed her course work for a Ph.D. She worked as a chemist at Wyeth Pharmaceuticals, Inc. and later held positions as an executive recruiter at Korn Ferry in New York City and at

Lamalie (now Amrop International). Allen returned to the Binghamton area in 2001 to open her own executive-coaching and recruiting business. In 2009, she became global director of resources at Universal Instruments in Binghamton. Her move to Evolution occurred in 2011. At that time, the company employed 15 people. In her spare time, Allen is active in greyhound rescue, home improvement, and is an avid baker.

Evolution and OIGCN rely on local pro-fessionals for a variety of support ser-vices: Community Bank, N.A. for financing: Hinman, Howard & Kattell, LLP, and Levene, Gouldin & Thompson, LLP for legal work; Payco for payroll services; The Partners Insurance & Financial Services for risk management and investments; Davidson Fox & Co., LLP for accounting; and ICS Solutions Group for computer support.

Allen is optimistic about continued growth for the companies. “We are a finalist with Premier [Inc.], a group-purchasing or-ganization (GPO) with 100,000 customers, including 2,700 hospitals, and $46 billion in buying power. Premier currently has four sanctions-screening vendors on its contact list, and I’m optimistic that … Evolution and OIGCN will be added. This alone could more than double our business. In anticipa-tion, Tony and I are already talking about buying our own building with adequate room to expand. Longer-term, with the U.S. Department of Justice finding more employer liability and government adding more regulations and oversight to corpo-rate operations, demand for our services will only continue to grow.” n


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Marietta Corp:

From sauerkraut to

serendipity. Page 3.

Nonprofit Corner:

Chenango Arts

Page 4.

Presorted Standard

U.S. Postage Paid

Syracuse, N.Y.

Permit # 568

Traditions turns to

the Senecas to run

its proposed casino

JOHNSON CITY — On May 22, representatives of Traditions

Resort & Casino, LLC announced the establishment of a

strategic relationship with Gaming & Leisure Advisors, LLC,

a New York state, for-profit subsidiary of Seneca Gaming

According to SGC spokesman Phil

Pantano, Gaming & Leisure Advisors

would be paid a management fee for

“running the gaming floor and associ-

ated amenities, including valet parking,

The fee would be determined on a

percentage basis, but there was no dis-

closure of whether it was based on rev-

enues, profits, or another benchmark.

Neither SGC nor Traditions committed

to stating the length of the agreement,

other than it was “long-term,” but did

say that at this point SGC has no equity

position. William Walsh, the CEO of

Traditions, says he had interviewed

more than a dozen operators before

Traditions Resort & Casino is owned

by the Walsh family. The Traditions

facility currently includes a golf course,

conference center, hotel, and spa. Traditions Resort &

Casino is pursuing a gaming license from New York

State, one of four available Upstate. Upon receipt of the

license, the resort and conference center proposes to invest

$150 million to build a casino and to make other planned addi-

CVT expands

Sherburne

plant

J S

SHERBURNE — Chenango Valley

Technologies, Inc. (CVT) is bursting

at the seams. Inventory and cus-

tomer orders are stacked to the ceil-

ing in the warehouse, requiring the

business to add another 5,000 feet

of space.

“The project should be completed

by July 25,” says, Shawn A. Baker,

company president.

The 5,000-foot expansion at CVT

is a pre-engineered, metal building.

The contractor is All Wall Builders

located in DeWitt.

CVT is a custom, injection-molding

company that manufactures plastic

parts. The parts are sold to a variety

of industries, including medical, elec-

tronics, lawn and gardening, cosmet-

ic, consumer, automotive, marine, and

recreational-vehicle. CVT, which was

founded in 1972 by Shawn Baker’s fa-

ther Lloyd as a tool-and-die company,

is a full-service, single-source opera-

tion offering part-design, mold/tool

design, mold-making, hot stamping,

sonic welding, assembly, and injec-

tion molding.

Lloyd Baker, company CEO, made

a strategic move in 1995 when he

bought Madison Plastics, a long-

established custom-injection mold-

ing firm based in Verona. Today,

CVT employs 45 people and runs

three shifts for its customers, some

of whom have been with the busi-

ness for more than 30 years. When

the new addition is completed, the

plant will occupy 30,000 square feet

on a 15-acre parcel. The building and

land are owned by CVT, an “S-corp”

whose stockholders are the Baker

family. The Business Journal News

Network estimates CVT’s annual rev-

enue at more than $5 million.

“Our growth has been steady,”

says Shawn Baker. “The company

even grew during the [recent] reces-

sion. I feel more comfortable with

NORMAN POLTENSON/THE GREATER BINGHAMTON BUSINESS JOURNAL

BBBBBCVT expands

Sherburne

plant







of space.



company president.




located in DeWitt.














tion molding.





BBBBBCVT expands

Sherburne

plant







of space.



company president.




located in DeWitt.














tion molding.

Lloyd Baker, company CEO, made





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John G. Ullman:

A financial-planning

pioneer. Page 2.

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Permit # 568

UHS Home Care

anticipates growth

as demand rises

JOHNSON CITY — UHS

Home Care has settled into

its new home, allowing it

to centralize its operations

and set the stage for future

The home-health-care

provider is now headquar-

tered at 601 Riverside Drive

in Johnson City, just off the

Route 201 traffic circle. The

parent organization, UHS,

owns the building. UHS

Home Care occupies 28,000

square feet of the 35,000

square feet available and

moved to the new location

in May.“The move enabled us to

centralize our operations,”

says Greg Rittenhouse,

vice president and COO of

UHS Home Care. “[Prior to

the move] … we had mul-

tiple locations in Endicott

and Vestal, which made it

difficult to deliver our ser-

vices to patients scattered

throughout a four-county

region (Broome, Chenango,

Delaware, and Tioga). This

site features a spacious retail

showroom, as well as offices

for the health-care staff and

plenty of parking.”

Rittenhouse is not think-

ing just of the advantages of

J S

Success comes to those who are too

busy to be looking for it. — A sign

posted in Ryan Brooks’ office.

ONEONTA — Brooks Bottling Co.

just took delivery of a new bottling

line. The machinery should be in-

stalled and operational by the end of

August.

Driving this latest capital invest-

ment is consumer demand for new

sauces and marinades. The Mintel

Group, a global market-research

provider, is forecasting an annual

growth rate of 3 percent for most

sauces. Five-year projections by IBIS

World, an industry market-research

organization, indicate that demand

for hot sauces will grow annually

at a 9.3 percent rate. Insistence on

product versatility by millennial or

Generation-Y consumers is a major

factor propelling the “dip, sauce, and

dressing category.”

Ryan Brooks, the managing mem-

ber of Brooks Bottling Co., LLC

and president of its sister company,

Brooks’ House of Bar-B-Q, Inc., both

located on State Highway 7, just east


Brooks’ Bar-B-Q is hot

Mud Is Our Bud:

Obstacle events, Mud Runs

gain in popularity. Page 8.

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OURNALOURNALOURNAL

THE LIST

John G. Ullman:

A financial-planning

pioneer. Page 2.

Presorted Standard

U.S. Postage Paid

Syracuse, N.Y.

Permit # 568

UHS Home Care

anticipates growth

as demand rises

JOHNSON CITY — UHS

Home Care has settled into

its new home, allowing it

to centralize its operations

and set the stage for future

The home-health-care

provider is now headquar-

tered at 601 Riverside Drive

in Johnson City, just off the

Route 201 traffic circle. The

parent organization, UHS,

owns the building. UHS

Home Care occupies 28,000

square feet of the 35,000

square feet available and

moved to the new location

in May.“The move enabled us to

centralize our operations,”

says Greg Rittenhouse,

vice president and COO of

UHS Home Care. “[Prior to

the move] … we had mul-

tiple locations in Endicott

and Vestal, which made it

difficult to deliver our ser-

vices to patients scattered

throughout a four-county

region (Broome, Chenango,

Delaware, and Tioga). This

site features a spacious retail

showroom, as well as offices

for the health-care staff and

plenty of parking.”

Rittenhouse is not think-

ing just of the advantages of

S S S S

Success comes to those who are too

busy to be looking for it. — A sign

posted in Ryan Brooks’ office.

ONEONTA — Brooks Bottling Co.

just took delivery of a new bottling

line. The machinery should be in-

stalled and operational by the end of

Driving this latest capital invest-

ment is consumer demand for new

sauces and marinades. The Mintel

Group, a global market-research

provider, is forecasting an annual

growth rate of 3 percent for most

sauces. Five-year projections by IBIS

World, an industry market-research

organization, indicate that demand

for hot sauces will grow annually

at a 9.3 percent rate. Insistence on

product versatility by millennial or

Generation-Y consumers is a major

factor propelling the “dip, sauce, and

dressing category.”

Ryan Brooks, the managing mem-

ber of Brooks Bottling Co., LLC

and president of its sister company,

Brooks’ House of Bar-B-Q, Inc., both

located on State Highway 7, just east


Brooks’ Bar-B-Q is hot

Mud Is Our Bud:

Obstacle events, Mud Runs

gain in popularity. Page 8.

TGBBJ.COMTGBBJ.COM

BINGHAMTON UNIV. STORY 3

NONPROFIT CORNER 8

PEOPLE ON THE MOVE 10

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Brewery Ommegang sees continued sales spike on tap

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COOPERSTOWN — Overall beer consumption in America is flat. Craft beers, however, are generating double-digit growth as the consumer searches for variety and new styles.

The Brewers Association, the national organization for small and independent craft brewers, defines a craft brewer as one which produces no more than 6 million barrels a year and whose ownership by a non-craft, alcoholic-beverage company must be less than 25 percent. The demand for craft beers cre-ates a new brewery every day somewhere in the nation. The U.S. had fewer than 200 breweries 25 years ago. As of June, the country now has 3,000 breweries, a threshold not crossed since the 1870s.

While Americans imbibe, on average, 77.1 liters of beer per annum (217 12-ounce bottles), our inveterate propensity for the brew ranks us at number 14 globally; The Czech Republic takes bragging rights at 148.6 liters per capita. Still, America is the second biggest beer market worldwide with nearly a 13

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“The greatest risk is to do nothing” — a sign on Dave Culbertson’s desk.

VESTAL — The year is 1967. Dustin Hoffman, who played the lead in the movie “The Graduate,” is pulled aside by a friend of his parents who wants to share one word — “plastics.” The idea is that the future will be driven by plastic products.

David J. Culbertson, president of National Pipe & Plastics, Inc. (NPP), headquartered in Vestal, agrees. “This year, NPP will produce 300 million pounds of PVC pipe (polyvinyl chlo-ride) and another 30 million pounds of polyethylene pipe,” notes the presi-dent. “Our 3,000 customers buy sewer pipe, plumbing and industrial pipe, pipe for electrical conduits, utility duct pipe, pressure-water pipe, and other products. Demand for plastic pipe keeps rising as the population grows and aging infrastructure needs replac-ing to ensure clean drinking water

and safe sewers. PVC and HDPE (high-density polyethylene) are more economical, easier to install, last lon-ger, and are … [impervious] to tuber-culation (corrosion products on the inside of the pipe) and biofilms.”

To accommodate the increased de-mand, Culbertson has just completed moving his Vestal manufacturing op-eration into a new facility located in West Endicott. “The company bought the 235,000-square-foot building and 45 acres about 10 years ago,” says Culbertson. “The rationale for pur-chasing the property was to relocate our operation in order to take ad-vantage of lower electric rates then

offered by the municipality. When it didn’t materialize, we looked at mov-ing to Canada and Pennsylvania as al-ternatives. Fortunately, the rates have dropped and stabilized, which made the move to Endicott viable.”

The investment in the new facility is substantial. “The company is pro-jecting to spend $25 million in capi-tal investments, of which $7 million pays for infrastructure improvements such as a new electrical system, new silos, a chilled-water system, and a 70-foot-high blending tower,” continues Culbertson. “Another $18 million is


National Pipe & Plastics ramps up production at new site

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