- Scranton Times
Transcription
- Scranton Times
T H E R E G I O N ’ S AWA R D - W I N N I N G S O U R C E $1.50 Inside September OF BUSINESS NEWS AND INFORMATION SEPTEMBER 2003 VOL. 18 NO. 11 I want to be left alone! ‘DO NOT CALL’ LISTS COULD COST NATION TWO MILLION JOBS Statewide and national Do Not Call registries could cripple an industry most consumers could live without. Who is affected and can the industry survive? By Patricia O’Brien Pick a peck of pumpkins of consumers and businesses alike. But reputable marketing efforts including direct mail pieces and specialized newsletters and emails are not considered by most to be an invasion of privacy. Grocery stores print coupons based on purchases made through your preferred shopping card.Amazon.com e-mails you by name with a book it thinks you might like to buy based on your previous purchases. But how much information is too much? “I am sure there are a lot of people who are capturing information and you may not know about it,” says Paul Creteau, owner of Business Smart LLC, a small consulting firm, Lakeville, Wayne County.“I don’t know that we will ever be able to limit the facts that many marketers are taking.They are always going to grab that type of Since the Federal Trade Commission launched the National Do Not Call registry in June, 30 million telephone subscribers have signed on to have their phone numbers removed from telemarketers’ calling lists.And the number grows steadily each day. Industry analysts expect 60 million Americans to sign up for this free service by the end of 2004. With 60 million fewer numbers to call to market products and services, the unemployment lines could soon be overflowing with out-of-work telemarketers. “We think this will cost two million jobs.There are 6.5 million people working in the industry right now. If that number is correct, that will put the national unemployment rate at 7.7 percent,” says Tim Searcy, executive director of the American Teleservices Association. Jobs are not all that will be lost, according to Searcy.The telemarketing industry estimates the list could cut its business in half, costing up to $50 billion in sales each year. The American Teleservices Association sued the Federal Trade Commission in January to stop the list and recently appealed to the 10th U.S. Circuit Court of Appeals in Denver to reject new regulations set by the Federal Communications Commission. The FCC further limited the ability of telemarketers in certain industries, such as airlines, banks and telephone companies, to contact consumers by blocking their calls. Long before the national Do Not Call Alone continues on page 49 Do Not Call continues on page 48 Local growers say this harvest will be one of the best. — Page 14 Wall Street West How the blackout of 2003 may aid efforts to make NEPA New York City’s understudy. — Page 8 A special look at Luzerne County’s other city. — Pages 31-35 Illustration by Kevin O’Neill By Kathy Ruff Identity theft and the deluge of junk mail, telemarketing calls and spam contribute to growing fears that privacy in today’s wired world has disappeared. But is it an issue of privacy or a lack of integrity and trust among marketing maestros? Marketing professionals continue to seek avenues to learn preferences to promote client events, sell products and services and maintain an image in the public eye. What’s different today is the method, madness and volume of marketers using technology to reach those markets that are increasingly online. The sale of e-mail and other customer relationship management (CRM) databases has become a lucrative business for anyone with the cash, and spammers’ works have invaded the everyday lives Saving grace Area gems regain their sparkle. — Page 42-43 ‘Racino’ concept may create ‘destination entertainment’ venues By Jennifer Butler What do you get when you cross a racetrack and a casino? Some say big bucks, more jobs, and greater tax revenue for the state, and have coined the term “racino” as the end product. According to Ewing Cole Cherry Brott (Ewing Cole), a Philadelphia-based architectural, engineering, interior design and planning firm, one that specializes in the design of entertainment facilities, the marriage of the two creates new opportunities for the state economy and the fading horse racing industry. State legislators, desperate for new strategies to meet strained budgets, may have found the answer in racinos, according to Ewing Cole. From the 1930s to 1970s, horse racing was extremely popular — a “premiere sporting event,” according to Don Dissinger, sports and entertainment practice leader and senior vice-president at Ewing Cole. He estimates that daily attendance at race- tracks in the heyday of the sport ranged from 10,000 to 50,000 people. The recent movie,“Seabiscuit” illustrates just how popular this sport was in the days of radio, when only baseball was a match for it with sports fans. In the 70s, that all changed with the introduction of state lotteries. “It was easier to go to a lottery outlet than to Racinos continues on page 30 2 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 DEVELOPMENT DIVISION One industrial par k. Hanover Industrial Estates, Hanover Township, PA. Many available pr oper ties. Possibilities ar e endless. Explor e them now. 108,000 SF CLASS A Distribution Center Turnkey opportunity with Plug-and-play capabilities Available Now 320-330 Stewart Road Lease Rate: Triple net, depending on terms and conditions. Brokers Protected. Call for details. 55,556 SF Expandable Building Available Now Lease Rate: Triple net, depending on terms and conditions. Brokers Protected. Call for details. 535 Stewart Road 252,000 SF Expandable Building Available Spring 2004 144,600 SF Tax-Exempt KOZ-Approved Building Expandable to 300,000 SF Available Now Lease Rate: Triple net, depending on terms and conditions. Brokers Protected. Call for details. Lease Rate: Starting at $3.65/SF, triple net, depending on terms and conditions. Brokers Protected. 1058 Hanover Street 1070 Hanover Street Contact Mericle today—We’re building solutions to suit you. Contact our Development Division: Bob Besecker, Jim Hilsher or Bill Jones (570) 823-1100. BROKERAGE DIVISION MANY successful sales. ONE solid source. You can count on Mericle for all your commercial and industrial Brokerage needs! East Mountain Corporate Center, 100 Baltimore Drive, Wilkes-Barre, PA 18702 Wilkes-Barre (570) 823-1100 • Scranton (570) 963-1100 • Williamsport (570) 323-1100 www.mericle.com Points to ponder as we pursue title: ‘Wall Street West’ As I prepare my children for their return to school, the school district in which we live — North Pocono — is contemplating building a new high school, in part because of a growing student body. We are not alone.There are school districts in Pike,Wayne and Monroe counties that have undergone several expansions within the past few years. In the Poconos and even into areas of Lackawanna County bordering the Poconos, it is increasingly common to hear a “New York” accent from people who say they are “year round” residents. The Scranton to New York rail connection will be ferrying people effortlessly back and forth in the near future. Now we hear that our region is being marketed as a backup site for New York financial firms.The need for a “Wall Street in the wings” was revealed after September 11; the point was pounded home after the great blackout of 2003. Their lights went out. Our’s didn’t. The “business” side of my brain is elated that our area may be enriched and enlivened by capitalizing on our proximity to New York. If we can attract quality jobs and lure educated, youthful people to relocate D E PA R T M E N T S here — we all benefit. I don’t argue with that logic. I believe it is sound logic and I welcome the chance for our area to grow. However, the illogical part of me mourns the loss of some of the things that made our area unique. I know a stagnant population is bad, bad, bad. But there is a certain charm in being able to say of a surname,“That’s a Dunmore name, or an Old Forge name, or a Peckville name,” and be right on the money. My husband noted of a new shopping center,“It’s pretty, but it looks like it could be from anywhere.” A new shopping center is almost always something to celebrate — it means that money and people and jobs are there to support it. But there is that small nagging regret that the old corner store had to die to give birth to the spanking new mini mall. To add to the illogic of that regret: that corner store rarely stocked what you needed, and kept hours that made it impossible to shop there! Nevertheless, it feels like some small connections to childhood are being lost.And the older one gets, the more precious those last few connections become. So, with intellectual bliss but a heavy heart, I say,“Wall Street West? Bring it on.” Banking & Finance . .6, 7, 8, 9, 10 ,11, 12 Business Roundup . . . . . . . . . . . . . . . .20 Corporate Lifestyles . . . . . . . . . . . . . . .14 Cover Stories . . . . . . . . . . . .1, 48, 49, 50 E-Business, Computers & the Internet . . . .17, 18 Economy . . . . . . . . . . . . . . . . . . . .22, 23 Focus: Architects and Engineers . . . .42-43 Focus: Hazleton Renewed . .31,32,33,34,35 Focus: Northumberland County . . . . . . . . .16 For the Record . . . . . . . . . . . . . . . . . . .52 Healthcare, Oncology Care . . .24,25,26,27 Management & Leadership . . . . . . . . . .37 Marketing . . . . . . . . . . . . . . . . . . . . . .39 Personnel File . . . . . . . . . . . . . . . . . . .44 Real Estate & Construction . . . . . . . . . .46 Regional Business. 13,21,28,30,38,41,47,54 “I’d say it is probably the most innovative idea brought into my business since the introduction of computers.” — Gino Bartoli, president of A.J. Lupas Insurance Agency Inc., on Landmark Bank’s new courier service, page nine Vol. 18 No. 10 • September 2003 149 Penn Avenue Scranton, Pennsylvania 18503 www.npbj.com The Northeast Pennsylvania Business Journal is a member of Times • Shamrock Publishing Division “This year the weather has been fairly good for growing, and the (apple) crops have been better than they have been in past years.” — Gary Ritter, owner, Ritter’s Cider Mill, Mount Cobb, page 14 Editor “Businesses need to be aware that an increasing number of residential customers are choosing broadband access. Since broadband service is traditionally more expensive than dial-up, one could conclude that these individuals are also the ones with money to spend.” Elizabeth Zygmunt — ext. 5415 Managing Editor Christine Fanning — ext. 5409 Editorial Assistants Jamie Callen — ext. 5213/5223 Patti Knoepfel — ext. 5414 — Brian Mengel, director of engineering, PenTeleData, Palmer ton, page 17 Contributing Reporters John Beauge, Jennifer Butler, Robert Curran, Bernard Healey, Leigh Ann Jacobson, Mary Ann Krisa, Ralph Nardone, Patricia O’Brien, Beth W. Orenstein,Andrew Ohrman, Marianne Tucker Puhalla, Kathy Ruff “To be a good leader . . . you have to be able to express yourself spontaneously . . . Powell, Rumsfeld and Clinton, in particular, are articulate. Bush is learning on the job.” — William J. Parente, Sr., Ph.D., professor of political science at the University of Scranton, in a discussion of leadership qualities, page 40 Director of Community Newspaper Group Tim Holmes — ext. 3441 ADVERTISER INDEX Alice's Wonderland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 American Environmental Outfitters . . . . . . . . . . . . . . . . . . . . . .62 Arc Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Blackout Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Blue Cross of Northeastern Pennsylvania . . . . . . . . . . . . . . . . .27 Borton-Lawson Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 CAN DO Inc. /Hazleton Chamber . . . . . . . . . . . . . . . . . . . . . . .33 Citizens Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Classified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60 Clickdata.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Clough Harbour Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Colman Sales Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Columbia Hudson Partnership . . . . . . . . . . . . . . . . . . . . . . . . . .7 Commercial Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Community Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Cooks Medical Care Company . . . . . . . . . . . . . . . . . . . . . . . . .24 Creative Business Interiors . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Cross Valley Federal Credit Union . . . . . . . . . . . . . . . . . . . . . . .34 Design/Build Consultants LLC . . . . . . . . . . . . . . . . . . . . . . . . .42 Eagle Rock Resort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Electric City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 First Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 First Heritage Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 First Liberty Bank & Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 First National Community Bank . . . . . . . . . . . . . . . . . . . . . . . . .34 G2 Integrated Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Hawk Mountain Labs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Hazleton Development Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Hinerfeld Commercial Real Estate . . . . . . . . . . . . . . . . . . . . . . .9 Hinman, Howard & Kattell LLP . . . . . . . . . . . . . . . . . . . . . . . . .47 Hutchison Insurance Agency . . . . . . . . . . . . . . . . . . . . . . . . . . .29 IMR Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 S U B S C R I P T I O N Small Business Spotlight . . . . . . . . . . .45 [email protected] They said it here Cartoon by Brad Veley 4 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Isabella Restaurant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Junior Achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 K C Larson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 KBF Print Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 L. R. Costanzo Co. Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Luzerne County Community College . . . . . . . . . . . . . . . . . . . . .21 McCormack Mortgage Services Inc. . . . . . . . . . . . . . . . . . . . . .45 Mericle Commercial Real Estate Services . . . . . . . . . . . . . . . . . .3 Mesko Glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Moyer Aviation Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 Nextel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Northeastern Medical Center & Northeastern Occupational Medicine & Rehabilitation Center P.C. . . . . . . . . . . . . . . . . . . . . . . . . . .24, 64 PenTeleData . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 PNC Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 QProQ Engineering Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Radiation Medicine Specialists of NEPA . . . . . . . . . . . . . . . . . .25 Rock Creek Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Shamrock Communications . . . . . . . . . . . . . . . . . . . . . . . . . . .56 St. Luke's Hospital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Subway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 T.E.A.M. Supply Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Tech Aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 The Altamont Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 The Citizen's Voice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 The Legacy Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Trade Eastern Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Wachovia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Wachovia Wealth Management Group . . . . . . . . . . . . . . . . . . . .15 Windham Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 WVIA Public Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Wyoming Valley Healthcare Systems . . . . . . . . . . . . . . . . . . . . .26 Subscribe to the Northeast Pennsylvania Business Journal Payment enclosed 1 Year, 12 issues - $28 Name Company Business Type Address City Telephone Signature Bill me 2 Years, 24 issues - $49 3 Years, 36 issues - $64 Title/Position State FAX ZIP Code For faster service, fax this card to (570) 207-3452; or call (570) 207-9001/877 584-3561 Includes All Supplements! Advertising Sales & Circulation Coordinator Sandy Sheehan —ext. 5420 Account Executives Cathy Dowd — ext. 5421 Judy S. Gregg — ext. 5425 Graphic Artists Mark Colarossi — ext. 5426 For subscription information log on to www.npbj.com ADVERTISING/SUBSCRIPTIONS (570) 207-9001 or (877) 584-3561 Fax: (570) 207-3452 PRESS RELEASES/STORY SUGGESTIONS (570) 207-9001 or (877) 584-3561 Fax: (570) 207-3452 Mailing Address: NPBJ Editorial Dept; 149 Penn Avenue, Scranton, PA 18503 Editorial e-Mail Address: [email protected] C O P Y R I G H T NPBJ is protected under the federal Copyright Act. Reproductions of any part by any means or facsimiles without the express written permission of the publisher are not permitted. Reprints of NPBJ articles are available. Northeast Pennsylvania Business Journal cannot be responsible for the return of unsolicited materials — manuscripts or photographs — with or without the inclusion of a stamped, self-addressed return envelope. Information in this publication is gathered from sources considered to be reliable, but the accuracy and completeness of the information cannot be guaranteed. No information expressed herein constitutes a solicitation for the purchase or sale of any securities. Northeast Pennsylvania Business Journal (ISSN 10785698) is published monthly except twice in the month of April by The Scranton Times from offices located at 149 Penn Ave., Scranton, PA. Periodicals postage paid at Scranton, PA.The Journal serves business owners, managers and professionals in a 10-county region. Subscriptions are available for $28 per year, $49 two years or $64 for three years. POSTMASTER: Send address changes to Northeast Pennsylvania Business Journal, 149 Penn Avenue, Scranton, PA 18503. WHAT CAN A T E L E S C O PE TEACH US ABOUT F I NA NC I A L R E L AT I O N S H I P S ? The best ones make more power available if you need it Wisdom is everywhere. Uncommon wisdom is knowing how to apply it. As the nation’s fifth largest financial services company, our focus is on listening carefully to every customer and bringing the right resources to bear. Talk to us. When we take all that you know and add all that we’ve learned, together we can achieve uncommon things. Visit a financial center || Call 800-275-3862 || Click to wachovia.com © 2003 Wachovia Corporation; Wachovia Bank, N.A. Member FDIC. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 5 The ethics of asking for Medicaid care program, which gives incentive to the American public to pay the premiums for When does it become ethical to “spend care that extends into the home, rather down” your assets to qualify a loved one for than only the traditional Clorox-perfumed, Medicaid? Is there ever a “right” set of cirheaven’s waiting rooms we call nursing cumstances to do so? Is entitlement to homes. Not to put the knock on the nursthese benefits a right of every American? ing home industry. They do a heroic job Or should your end-of-life care and its atten- with limited funds. Very limited funds. dant costs be your responsibility? And the work is not fun. Many financial professionals Given that no one among us today are facing these and more wants to be in these dreadful difficult questions when their places, it tears at our heartclients or their clients’ children strings to make the decision to come to them for help in making put Mom or Dad in one and Mom or Dad qualify for governwonder why there is no alterment aid in nursing care costs. native. There could be. The dilemma is in the question. As the Baby Boomer generaIs it ethical to do this? tion nears the age where the Suppose the family assets connursing home looms as a dissist of a farm, which has been in tinct possibility, their immense Evans the family for the last two hunpower as a consumer group dred years. If the next generation is will affect the choices we now have. actively farming the land and generating But until that happens, where do we a living from the farm, is it right for the draw the line? government to be the auctioneer at the Granted, the needs of the “community death of the elderly farmer who had no spouse” (a lovely euphemism for the assets, in an effort to recover the costs spouse left at home when the other is in for his stay in a nursing home? a nursing home) have to be taken care of If not, then what about the children of and being able to preserve some type of the corporate executive who expected to financial security for that person is parainherit Dad’s generous stock portfolio mount. So how much is enough? when he passed on and demanded from Elder care attorneys who specialize in their attorney that he make Dad eligible this type of planning have some tried and for Medicaid to preserve their inheritance? true methods to make this happen. And Do we have a sense of right for the first still within the guidelines of the federal case and disdain for the second? Why? government, but it’s not that much. What about being responsible for our Even though the Feds set the guidelines, own medical care and its costs? the state has the ultimate say in what that Is that concept as irrelevant a moral amount is. It currently lands somewhere standard as the mortgage-free home? around $90,000 in assets (the house?) and Probably so. only $2,000 in cash. So should that perIn the last generation, people had multison be penalized because his or her generational households with the tradispouse needs long-term care? tional wife/mother at home. Is it fair to force poverty on this commuThe daily care of all family members fell nity spouse in order for her husband to on her shoulders with children doing their get the care he needs, which she can’t fair share. The multi-generational family provide? What happens if she then has to rarely exists anymore and care of elderly go into a nursing home, too? parents is relegated to the occasional visit There are lovely options like gifting to from the progeny who live hours or days children, trusts, inter-spousal transfers, away. Grandchildren are committed to immediate annuities, and so forth. sports, music lessons and private tutoring Although all of them are legitimate to guarantee great SAT scores. options, each of them carries great risk of Our current societal values dismiss the coming back to haunt you. The only viable inclusion of care for the elderly as a top option is a long-term care policy, which priority, so we transfer that responsibiliallows for home medical care as well as ty and cost to the local agencies and the nursing home stays. Lynn S. Evans, certified financial planner, is federal government. And then we rail president of Northeastern Financial against the authorities when they deny Consultants, a Clarks Summit-based firm the care for free. and licensee of financial life planning tools What’s missing in this equation? and materials.Visit the company on the Web Maybe the answer is a better long-term at www.nefci.com. or e-mail [email protected]. By Lynn Evans R E S T A U R A N T A N D B A R Fine Dining 1140 ROUTE 315, SUITE 101 WILKES-BARRE, PENNSYLVANIA 18711 OPERATING HOURS: DINNER: MONDAY THROUGH THURSDAY 5:00 PM - 10:00 PM FRIDAY - SATURDAY 5:00 PM - 11:00 PM LUNCH: MONDAY THROUGH FRIDAY 11:00 AM - 2:00 PM FOR RESERVATIONS, PLEASE CALL 570.270.9292 6 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 PNC Foundation presents gift to Marywood University Representatives of PNC Bank recently presented a check in the amount of $20,000 from the PNC Foundation to Marywood University. The funds represent the bank’s final payment of a $100,000 pledge. Seen at the check presentation were, left to right, Peter J. Danchak, president, PNC Bank Northeast Pennsylvania; Sister Mary Reap, I.H.M., president, Marywood University; and Paul Kosiba, PNC Bank, vice president, institutional investment group. Tips for efficient debt collection The grim reality for many businesses is the eventual need to deal with slow-paying or nonpaying customers. In fact, an otherwise thriving small business can find itself facing financial difficulties when fees for services or products are not collected on a timely basis.To avoid this situation, the Pennsylvania Institute of Certified Public Accountants recommends that you have a plan in place for collecting and monitoring accounts receivable and following up on unpaid invoices. Start with a clear policy Firmly establish your company’s payment terms and put them in writing. Before you take an order or start a project, let clients know when and how you expect payment. Be clear about your acceptance of such things as personal checks and credit cards, and the forms of identification required when using these. Also, be sure the policy includes deadlines for payments, along with penalty clauses for large amounts that remain unpaid. To avoid having your cash flow disrupted by slow or nonpaying customers, consider asking for payment up front. Depending on the type of business, this can be full or partial payment, deposit, or retainer.Advance payment not only will help your cash flow, but also will secure the relationship between your company and the customer. Check customer’s creditworthiness If you sell high-priced items or services that will be paid over time, it’s especially important to check the customer’s creditworthiness.When you provide an item or service to be paid at a later date, you are extending credit.You need to be sure that customers are creditworthy. Credit application forms can be purchased at most office supply stores, but a better idea is to have an attorney draw one up. In addition to providing you with basic contact information and bank account numbers, a good credit application gives you permission to order credit reports and check trade references. Once the prospective customer has completed the application, be sure to verify the information supplied and call the references to check on their payment experiences. Invoice promptly Billing promptly and accurately is key to the timely collection of fees. Don’t wait until the end of the month to bill. If there is a long lag time between completion of the work or shipment of the order and the date of the invoice, the message to your customer is that it’s OK to be slow. Before sending out invoices, take the time to carefully check them and be sure the due date, description, amount, and terms are clearly stated.An error will compromise your image and encourage slow payment. Another way to ensure prompt payment is to follow your customer’s invoicing instructions to the letter. Many large companies have precise methods for invoicing.Whether that means sending the bill to one department and a copy to the person who requested the service or including a special vendor identification number, adhering to the rules results in a more prompt payment. Monitor and follow up on payment due There are many accounting software packages available that will give you tools to monitor your accounts receivable. Basically, you need to know who owes what and for how long. It is advisable to develop a timetable for handling overdue bills. Mail a second invoice, with a notation or stamp that says “past due” or “second notice,” and then follow up with a phone call. Send late payment reminders early and frequently.Typically, the longer a bill goes unpaid, the less likely you are to recover the funds. Getting outside help Sometimes having an attorney send a letter to the overdue account is enough to hasten payment. If that doesn’t work, you may need to resort to small claims court or a collection agency. Keep in mind that, in most states, small claims courts typically cap the amount for which you can sue at a few thousand dollars, and the process can be time-consuming. If you refer overdue accounts to a collection agency, be aware that the amount collected will be less than what you’re owed. This is because the collection agency may negotiate down the amount due and take a percentage as its fee. It can pay to be flexible Although it is vital to have specific policies in place, from time to time it’s wise to be flexible. For example, if a customer who has made timely payments in the past suddenly experiences financial difficulties, consider working out a flexible payment plan. Just be sure to collect some amount each month until the overdue amount is completely paid. CPAs point out that while payment in a timely matter is important, so is maintaining good relationships with long-standing clients. This article was provided by the Pennsylvania Institute of Certified Public Accountants, a professional association of more than 19,000 CPAs who work in public accounting, industry, government, and education.Visit www.picpa.org. Tobyhanna Army Depot gets new commander Col. Tracy L. Ellis (left) accepts the Tobyhanna Army Depot flag from Maj. Gen. William H. Russ, commanding general of the U.S. Army Communications-Electronics Command. The change of command ceremony took place July 31 on the front lawn of the Headquarters Building. Ellis will serve as depot commander for three years. His most recent previous assignment was as chief of staff, Friendly Forces Coordination Cell at the U.S. Central Command (forward) in Saudi Arabia. It doesn’t get more business-friendly than this! Need a home for your growing or relocating small to mid-size business? You won’t find a better place than Columbia County’s Empire Zone. You’ll enjoy almost tax-free operation for up to ten years, as well as special, reduced electric and gas rates. Plus, our Empire Zone areas offer abundant, shovel-ready land, or existing industrial and commercial buildings. A skilled workforce and ample power and water resources are additional assets. With its clean air, natural beauty, rich history, cultural venues, and year-round recreation, Columbia County’s exceptional quality of life is an added bonus. For more information, call us today. 1-518-828-4718 Columbia County... The Heart of TechValley Columbia Hudson Partnership, 444 Warren Street, Hudson NY 12534-2415, [email protected] U.S. Army photo by Charlie Cardimona NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 7 Blackout of ’03: added opportunity for ‘Wall Street West?’ By Jorge Coronel For years, regulators, advisory boards and industry organizations have drafted recommendations to guide key industries on steps to limit exposure from natural disasters, terrorism, and other business hazards. Many of these recommendations have made their way into mandates and regulations. Triggered by September 11, one of these recent initiatives was the “Interagency White Paper” undertaken by the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, and Security and Exchange Commission. Although this paper has a much broader scope, one of its calls to action is for financial institutions — primarily located in New York — to put in place “geographically separated” backup sites. These backup sites have many requirements that do not allow them to share infrastructure components: water, power, transportation, and communications. Until recently, this was not possible due to the constraint of synchronous data backup technology, limited to 50 miles. However, recent advances by EMC in symmetrix and SRDF technologies for synchronous mirroring of storage subsystems have extended the range to 125 miles — opening the door for northeast Pennsylvania to meet the requirements as a backup site (see map). And not a minute has been wasted. Ironically, days before the great blackout, area officials led by Rep. Paul E. Kanjorski (D-11) met with Security Industry Association representatives in New York for the purpose of marketing northeast Pennsylvania as a viable location for backup sites. More information about these efforts can be found at www.pennsnortheast.com. After the blackout, Chris Haran, CEO of the Great Valley Technology Alliance, said that the “presentation was well received, and now, coupled with last month’s scenario, should raise some eyebrows.” In addition, the aforementioned infrastructure requirements elevate northeast Pennsylvania to a prime site due to the elimination of many of the other locations within the 125-mile radius.The goal for recovery of these financial organizations is set to be within a couple of hours, hence the need for synchronous backups and hot-site operations. To put this need in perspective, data from The Fibre Channel Industry Association places the average downtime cost for brokerage operations at approximately $6.5 million per hour. Coupled with additional investments underway, northeast Pennsylvania continues to set itself apart as a key location for business. We should not overlook the fact that our awareness and involvement in high-tech developments have us at the forefront of this and other opportunities. To prepare for those oppotunities, the August 14 blackout presents regional businesses with some timely lessons about what can happen when an interruption strikes. While large business got the press, much of the unpublished business impact sits close to home — among the small and midsized businesses of New York and surrounding impacted areas. It is guaranteed that 100 percent of these were impacted in some way — sadly, a significant amount were financially impacted.Tragically enough for a small New York financial firms had been warned after Sept. 11 to have backup sites within a 125-mile radius. Ironically, days before the ’03 blackout, area officials, led by Rep. Paul E. Kanjorski, met with Security Industry Association representatives in New York for the purpose of marketing northeast Pennsylvania as a viable location for backup sites. In purple are areas affected by the blackout. Within the circle are those areas within 125 miles of New York City. number, it may have been the final blow. The lesson learned is that planning for a business interruption is no longer reserved for Goliath enterprises. With respect to northeast Pennsylvania and its various economic development efforts to become “Wall Street West,” it is imperative that we recognize this very important component — planning for interruption — that must be adopted as part of our business planning. Studies show that 50 percent to 70 percent of small businesses don’t have plans to protect their enterprise.These plans don’t have to prepare for Armageddon, planning for an interruption is enough. Indeed,“disaster recovery planning” has now routinely been replaced with the more appropriate “business continuity practice” in business plans, and rightly so. More appropriate levels of considerations have been added to make business continuity practices more meaningful and appropriate for all business. A key topic, for example, is protecting against downtime caused by computer viruses. Business continuity practices carry a specific set of practices and guidelines for prevention and recovery in the event of a virus.This latter point further conveys the importance and scope of business continuity, in that it emphasizes how serious financial harm can be caused to an organization by a component of the business being interrupted. An all-encompassing disaster does not have to occur to cause disruption. Let’s not forget that we must do as we preach, so let’s update those business plans with a nice thick business continuity section, your insurance company and business bankers will love you for it. Jorge L. Coronel is chief executive officer/president of Infinity Technology Group Inc., Clarks Summit. He can be reached at (570)586-4850 or on the Web at www.itgsystems.com A taste of Tuscany and a dash of Manhattan flavor this family’s restaurant By Mary Ann Krisa When 28-year-old Liza Tambur and her 30-year-old brother, Robert S.Tamburro, decided to partner with their parents, Robert L. and Virginia S.Tambur, to open Isabella’s, a restaurant located in Pittston, food was not their only concern. “Our goal was to bring something totally new to the area,” co-owner Liza Tambur said. “We traveled a lot and went to the restaurants that we liked.” They visited New York City restaurants and, based on their experiences, established the concept of Isabella’s — an idea, they say, that combines New York City ambience with Tuscan Italian-influenced New American cuisine. Fortunately, their professional backgrounds provided a strong foundation for the establishment. Tambur, who worked at Condé Nast Publication’s fashion magazines, Allure and Glamour, was able to provide her attention to detail as well as her creative flare to the design and cuisine of Isabella’s, while Tamburro, whose background is in commercial real estate development, implemented his area of expertise. The family says that they had long considered opening a restaurant but the time had never quite presented itself. They purchased the site in the mid-80s and various restaurants, Café Nino, Court Side Lounge, and Medici, inhabited the site until both the family and the space were available. “We came together with a concept of the restaurant,” Tamburro said. “And the concept required a major overhaul of the space. We gutted the entire inside of the building.” Tamburro’s focus was primarily on the spatial side of the business, providing direction on what had to be done and when. Together, they all agree, the partners complemented each other quite well. “From the business aspect, I was able to bring the management of personnel, costs and accounting. My mother and sister were the architectural and decorating consultants, while I had more of an input on the spatial aspects,”Tamburro said. “Apart from being brother and sister, we’re partners,”Tambur added. “I have a lot to learn from him and he has learned a lot from our father.” Diners can choose from among the traditional, like “The Isabella Burger” for $11, or something a little less common, such 8 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 as “Hand Cut Spinach Pappardelle” at $18. Orders are delivered to white linendressed tables via an aproned server meticulously dressed in a shirt and tie. The interior walls are decorated with European-style sconces that cast an evening glow on the hardwood floors. Patrons may finish the evening while sipping a glass of “Bruichladdich Islay,” a 15year-old Scotch at $9, or opt instead for a taste of something exotic from the dessert menu such as “Citrus Pots de Crème, Chantilly and Caramel Oranges” for $5. “Our goal is to provide the finest food, finest service, and the most unique atmosphere. We worry about what we can do and how we can make it better,” Tamburro said. “From a broader spectrum, I think an establishment like this makes the area a more appealing, enticing place to live.” And while the restaurant does indeed bring something different to the area, the true allure of Isabella’s is the dedication of the of the restaurant’s founders to its development and continued cultivation. “We are a family business,”Tamburro said. “And we’re all actively involved.” Isabella’s is located at 1140 Route 315, Wilkes-Barre. Hours are 5 p.m to 10 p.m., during the week, Friday and Saturday, 5 p.m. to 11 p.m. Lunches are served Monday through Friday, 11a.m.to 2 p.m. Call (570) 270-9292 for reservations. Small bank uses couriers to wage battle for convenience Landmark Community Bank has introduced a first-of-its-kind courier service that takes banking services to the business customer, saving those who use it time and money. “Today, more than ever, banking is an industry driven by convenience, as clients have less time for mundane tasks and must focus on their business,” says Daniel R. Nulton, Landmark CEO.“Many professionals tend to select a bank based on the proximity of a branch to their office. Landmark takes convenience and service to a new level by taking the bank to the client.” With only one office located at 2 South Main Street, Pittston, one of Nulton’s goals for Landmark was to make the two-yearold bank competitive with larger banks that have branches in every community. “There were a lot of clients who wanted to do business with Landmark because of our local ownership and personal service, but our Pittston location was not convenient for them. By offering valet bank- ing for our business customers, there is not a banking chore we can’t handle.We pick up deposits, deliver cash and can even process a loan request, from application to funding, without the client ever leaving his or her office,” he says. Landmark couriers are bonded and insured.The client determines the time and number of pick-ups each week. Nulton says that not only do businesses gain back the time and productivity lost every time a staff member had to make a trip to the bank, they also avoid the liability assumed every time an employee goes to the bank on company business. “It has made my life as a business owner much easier,” says Gino Bartoli, president of A.J. Lupas Insurance Agency Inc., Plains.“I don’t have enough time in the day as it is. If the courier service keeps me from having to drive to a bank, stand in line on the third of the month or wait at the drive-up window, then there’s no question that it is a good thing. I’d say it is probably the most innovative idea brought into my business since the intro- Check Processing Facts from the American Bankers’ Association: Banks process more than 40 billion checks each year. In the first comprehensive study in decades, the Federal Reserve reported that 42.9 billion checks, valued at $39 trillion, were paid in 2001. Some institutions process more than a million checks per day, traveling through sorting machines at speeds of up to 60 miles per hour. Funds on local checks must be made available within two business days according to the Expedited Funds Availability Act of 1987. Non-local checks must be made available within five business days. Certain circumstances permit longer holds due to the high risk of fraud, such as new accounts, deposits over $5,000, repeatedly overdrawn accounts and/or emergencies. The average value per check is $925, according to the 2002 Federal Reserve Retail Payments Research Project. Consumers write over half (50.9 percent) of all checks, according to a 2002 Federal Reserve study. Other categories include: business — 32.3 percent; government — 3.5 percent; business or government — 1.3 percent; unknown — 12 percent. Approximately 251 million checks are returned or “bounced” each year, according to the Federal Reserve. This is 0.6 percent of total check volume. The average value per returned check is $701. Source: www.aba.com/ By Marianne Tucker Puhalla duction of computers.” “The courier service is the same concept I have applied in the healthcare industry for 18 years,” says Paul C.Woelkers, president and CEO of Lackawanna Mobile X-ray Inc., Dunmore.“We are a mobile x-ray company that takes its service to the patients, in their homes and to them in nursing homes.Although the bank is in Pittston, that’s never an issue, because they bring the bank to me on a daily basis.” “I’m in an industry where time is money,” notes John Bartorillo, managing partner of Maslow Lumia Bartorillo (MLB) Advertising,Wilkes-Barre.“Anything that helps me save both is a true innovation.” MLB’s banking is handled by bookkeeper Anita Petroski who says the courier service is simple to use.“I call and tell them I have a pick up.They use tamperproof envelopes to take the deposits to the bank. I get a signed receipt at the time of the pick-up.The deposit slip is either mailed to me or delivered the next day.” Nulton says that since most of the business transacted is check-based, the couriers carry little cash.“Clients know that a full security plan is in place, and once a transaction is handed over, it is fully insured.” Landmark also carries out personal banking for individual business clients. Nulton says the courier service area reaches from Eynon in Lackawanna County to Nanticoke in lower Luzerne. Pricing is a function of the customer’s total relationship with the bank and very few clients pay additionally for the service. A Landmark Community Bank courier picks up a deposit at the Maslow Lumia Bartorillo Advertising Agency, WilkesBarre, Luzerne County, from office manager Anita Petroski. Photo by A.J. Zambetti Landmark is expanding its physical presence as well. A second branch is under construction along Wyoming Avenue in Forty Fort, and is expected to open later this year. Hinerfeld Realty Company - Commercial Division - Performance...Not Promises! KINGSTON MOOSIC MOOSIC NEW LISTING. RETAIL DEVELOPMENT SITE OPPORTUNITY. 213’ x 253’, 1.24 Acre Corner Parcel For Sale. 38,000 SF Warehouse-Showroom. Additional 105’ x 230’ Vacant Parcel included. On busy Pierce Street Corridor at 3rd Ave., with numerous retail and medical/dental facilities. Large neighborhood backup. Will also rent. PRICE REDUCTION. EXPRESSWAY WAREHOUSE. 12,000 Square Feet, preengineered steel building. 20’-22’ clear height. Two dock & two drive-in doors. 3,000 SF office. 400 amp power. Located between Moosic and Davis Street Exits of Interstate Route 81. INDUSTRIAL PROPERTY. 26,000 square feet in Warehouse / Light Industrial Building. Divided into five sections. Eight truck dock doors. 440 volt electric power. M-2: Heavy Manufacturing zoning. Close to Interstate Route 81. FOR SALE $1,125,000 FOR RENT $3.50 / SQ. FT. FOR RENT $2.50 / SQ. FT. WILKES-BARRE KINGSTON SCRANTON RETAIL DEVELOPMENT SITE OPPORTUNITY. 3.58 Acre Site at corner of Wilkes-Barre Boulevard and Coal Street. Take advantage of traffic between Mall and Center City. Can also be leased. NEW LISTING. WAREHOUSE. Cross Valley Industrial Center. 228,500 Square Feet. Heated and sprinklered. Eight dock doors. Up to 18’ clear height. 5.64 Acre site. Accessible from Cross Valley Expressway (Pa. Rt. 309). BACK ON MARKET. OFFICE/RETAIL. Birney Avenue, Minooka. 4,660 square feet building. Constructed as bank. Later expanded and used as car dealership auto service and engineering test lab. On U.S. Rt. 11 close to Davis Street Exit #182 of Interstate Route 81. FOR SALE $1,550,000 FOR SALE $850,000 FOR SALE $129,000 SCRANTON SCRANTON OLYPHANT HANDSOME DOWNTOWN BUILDING. 12,420 Square Feet commercial building. Three stories. Beautiful front. Ready for redevelopment. Close to University of Scranton and Court House Square. OFFICE. One story, 9,500 square feet office building for sale. Constructed in 1980’s for national insurance company. Plenty of parking. Suburban setting next to Abingtons. Near Allied Services campus. Morgan Highway, Rt 307. OFFICE/LABORATORY 4,500 Square Feet of nicely finished office space and clean, bright laboratory. Mid-Valley Industrial Park location. Short distance from Exit #2 of Gov. Robert Casey Expressway (U.S. Rt. 6), which gives quick and easy access to Interstate Routes 81, 84 & 380. FOR SALE $125,000 FOR SALE $775,000 CLARKS SUMMIT FORTY FORT OFFICE SPACE. 1,636 square feet six room suite of offices. Includes four private offices & conference room. Full service lease in beautiful “BDA” Building. Suburban office campus location. EXPRESSWAY INDUSTRIAL PROPERTY. 114,000 square feet Warehouse / Light Industrial Building on 4 acres. At Forty Fort/ Kingston Exit (#4) of Cross-Valley Expressway (Pa. Rte. 309), near Interstate Routes 81 & 476. Fully sprinklered. 70,000 square feet on 6” and 8” thick 1st Floor. Nine (9) truck doors. New Roof. FOR RENT $20.00 / SQ. FT. FOR SALE FOR RENT $7.50 / SQ. FT. 600 Lackawanna Avenue Scranton, PA 18503 Phone: 570/207-4100 or 342-8312 Fax: 342-6815 E-mail:[email protected] For information on all of our properties, visit our website @ www.hinerfeldrealty.com $1,250,000. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 9 Public opinion sour on economy, despite positive signs Despite signals from the equity markets that the worst might be behind us, concerns about the economy in general and a troubling unemployment situation weigh heavily on the minds of Americans. Twenty-seven percent of U.S. adults mentioned the economy in general as the country’s most important problem in Gallup Tuesday Briefing’s July 7-9 poll, and another 13 percent specifically mentioned the unemployment situation. A separate question found that 58 percent of Americans feel that the president is not paying enough attention to the economy. Clearly in the eyes of Americans, as the economy emerges tentatively from recession it cannot receive too much attention from Washington. Encouraging Signs The ongoing skittishness seems strange in some respects: the fog of war has lifted, after 13 rate cuts the Fed still maintains an accommodative stance, and new home sales are booming. Furthermore, there is good news from corporate America: reported corporate earnings have exceeded expectations and productivity growth is strong. The latest Thomson First Call consensus estimates project that second quarter S&P 500 earnings will be 8.1 percent higher than the year before and 66 percent of S&P 500 companies that have reported earnings so far have beaten estimates. The Unemployment Effect So why isn’t the public feeling more jubilant about the recovery? The most obvious answer continues to be the national unemployment rate, which climbed from 5.8 percent in March to 6.4 percent in June. Not only do 13 percent of Americans feel that unemployment is the most important problem facing the country, but 44 percent of Americans also believe that unemployment will go up (either “a RELATIONSHIPS At PNC, we’re committed to understanding your business. Together, we can really help it grow. Success in business has a lot to do with the relationships you build. And at PNC, building relationships with our clients is what we do best. We work hard to understand you and your business. Then we present you with a range of creative, flexible solutions to help you meet your goals. And your challenges. So talk to us. Together we can construct a plan to enable your business to grow. Please call 877-PNC-IDEA or visit pnc.com. lot” or “a little”) in the next six months. How does the unemployment rate impact overall perceptions of the economy? Even in periods of high unemployment, the vast majority of workers keep their jobs; thus the effect of high unemployment on consumer confidence comes from consumer skittishness about their own job security, and/or consumer sympathy pain for friends and family who are out of work. From data gathered for Gallup Tuesday Briefing’s 2003 Personal Finance survey in April, it appears that changes in the unemployment rate filter through to the public.There is high correlation between the actual unemployment rate and the percentage of Americans saying they know someone who has recently been laid off or fired. When the unemployment rate hit 6.0 percent in April 2003, 60 percent of Americans reported knowing someone out of work. That was up from 51 percent in February 2002, when the unemployment rate was 5.6 percent, and from 43 percent in August 2001, when unemployment was just 4.9 percent. Similarly, public perceptions about whether it is a good or bad time to find a quality job are closely linked to the unemployment rate. There is also some correlation between personal experiences and perceptions of unemployment, and one’s rating of the U.S. economy. Knowing someone who is out of work correlates strongly with a negative view of the U.S. economy. Only 13 percent of those who know someone out of work have a positive view of the economy, while 59 percent have a negative view. By contrast, the negative tilt is much less pronounced among those who do not know someone out of work: 29 percent of this group is positive, 39 percent is negative. The correlation between unemployment and the overall economy is somewhat clearer when looking at respondents’ general perceptions of the job market.The plurality (44 percent) of those saying now is a good time to find a quality job also have a generally positive view of the economy. By contrast, only 11 percent of those who say now is a bad time to find a quality job have a positive view of the economy; 60 percent of this group has a negative view. Bottom Line TREASURY MANAGEMENT I LEASING I CREDIT I CAPITAL MARKETS I INVESTMENT MANAGEMENT ©2003 The PNC Financial Services Group, Inc. 10 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 It seems especially revealing that young adults — who largely drove the Internet boom of the 1990s — are now particularly negative about employment prospects: while 16 percent of Americans overall believe that unemployment will go up “a lot” in the next six months, the percentage is 27 percent among 18- to 29-year-olds. Economists might point out that seasonal fluctuations in unemployment data are making statistics difficult to interpret, but judging by the resounding pessimism of Americans — and young adults in particular — there can be little doubt about the huge psychological toll. News of improved corporate earnings will ring hollow until Americans start to see — and feel — employment figures catching up. Nation’s top specialty retailers ranked, Best Buy on top In a year tested by a sluggish economy and geopolitical concerns, specialty retailers were forced to make hard decisions to ensure their continued success. The specialty stores that can distinguish themselves are the ones that are prospering, while the remainder are looking for sites and strategies in hopes of ensuring their continued existence, according to the 2003 TSYS Top 100 Specialty Retailers ranking, released last month by STORES, the magazine of the National Retail Federation. The rankings are based on an annual survey and are published in the August issue of STORES magazine. “As a group, the specialty retail market is extremely competitive,” said Rick Gallagher, STORES publisher and NRF vice president.“Some specialty stores are thriving, and others are fighting for their lives.” Minneapolis-based Best Buy leads the list as the nation’s largest specialty retailer with 2002 sales of $20.95 billion, a 13.2 percent increase over the previous year. Best Buy has benefited from strong sales of digital products, as well as a pick-up in sales of laptops and computer equipment. In addition, Best Buy has broadened its furniture collection, particularly in the area of home entertainment where goods are styled to coordinate with current TV models and audio/video systems and components. Gap retained its lion in sales (from Best Buy is the nation’s place as the secNo. 3 in 2002). No. 1 specialty retailer. ond-largest U.S. Toys R’ Us followed at specialty retailer, Familiar stores like Aeropostale the No. 5 spot with with 2002 sales of $11.3 billion in sales, $14.45 billion, a 4.4 and Gymboree round out the ahead of Circuit City percent increase (No. 6) and Limited bottom of the list. over 2001. Gap has Brands (No. 7). turned itself around after 30 consecutive Rounding out the top 10 specialty months of disappointing performances. retailers, AutoZone advanced to the By an increased focus on small busieighth position, up four notches nesses, Staples’ $11.6 billion in sales from its 2002 ranking. moved the office supplies retailer up Barnes & Noble rose to the ninth two notches to the No.3 spot, surpassspot, from the eleventh position last ing Office Depot, which was bumped to year. CompUSA, with a $300 million the fourth-highest spot with $11.36 bildecline in sales, dropped from the ninth position last year to No. 10. “The retailers on this impressive list represent the best and brightest innovators in an ultra-competitive industry,” said Philip Tomlinson, president of TSYS, a global payments leader and the largest third-party processor of retailer-managed accounts in the United States. “They have been able to flourish despite the current economy and are combating the challenges and intense competition that characterize retail.” For a complete listing of the “Top 100 Specialty Retailers,” call (202) 626-8189 or visit www.stores.org. Textron cuts staff By John Beauge Textron Inc. has reduced its salaried personnel by 20 percent and laid off approximately 15 hourly employees at its Williamsport plant. The leading manufacturer of piston engines for general aviation aircraft was forced to make the cuts due to poor economic conditions, Daniel Smith, vice president of human resources, says. About 30 salaried people either lost their jobs or accepted a voluntary severance package, he says. They do not have recall rights like the furloughed hourly workers, he says. The job cuts, which have reduced the Textron work force in Williamsport to just below 500, were unrelated to an engine recall last year ordered by the Federal Aviation Administration after it determined a faulty crankshaft caused a small plane crash in Michigan, Smith says. Textron contended the faulty part with its Lycoming engines was manufactured by a vendor but it hired 140 temporary employees to fix the problem. They were let go after the recall project was completed. Smith also says Textron plans at some future point to shift to the plant the repair work being done at its facility at the Williamsport Regional Airport in Montoursville.The airport hangar will remain in open, he says. Few of the engines that are repaired at the airport arrive by air and all are taken to the plant for testing before returned to the customer, he says. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 11 Wilkes-Barre’s Innovation Center incubator unveils Web site Rated one of the most business-friendly banks.† Local loan approvals. That’s a big deal for my business. Fast answers are important, and you just can’t get them through long-distance banking. The people of First Liberty Bank & Trust are ready to deliver all the sophisticated financial products your business needs – with the speed and personal attention others can’t match. We’re the local bank that knows what matters to your local business. See us soon, and let us help with your personal banking, too. Visit us at the branch nearest you, or on the web at www.firstlibertybank.com Scranton Offices: Local Branches: Keyser Ave. 343-1211 Minooka 341-5555 Spruce St. 558-3660 Wyoming Ave. 961-2402 Carbondale 282-9390 Clarks Summit 587-0575 Daleville 842-5715 Dickson City 307-7500 Jermyn 876-6500 Jessup 489-4736 Kingston 714-5700 Olyphant 489-4721 Pittston 655-7750 ATMs at all branches, Quinn’s Market in Blakely & Lackawanna Junior College † Community Bank, N. A. is rated a leading small business friendly bank by the U.S. Small Business Administration among those with assets from $1 to $10 billion. 12 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Member FDIC Entrepreneurs looking for the right place to build their business can find all the information they need online at the Innovation Center@Wilkes-Barre’s new Web site, www.icwb.biz. “The Innovation Center’s Web site will allow potential clients to learn about the various benefits to being in an incubator; including entrepreneurial resources and upcoming events,” explains John L. Augustine, facility director,“They can also view the floor plan and building layout, as well as get answers to their questions about the incubator process. And, most importantly, clients will be able to download applications and guidelines to becoming an incubator tenant.” More than an office building or a traditional business incubator, the Innovation Center@Wilkes-Barre is a place designed to unite energy, ideas, talent and expertise. Located in the historic Woolworth’s building on South Main Street in downtown Wilkes-Barre, close to colleges and universities — the technology incubator will provide tenants with convenient access to a well-trained workforce, as well as research and development resources. Designated a KOZ (Keystone Opportunity Zone) area, the facility will also offer newly renovated Class A space and tax incentives to potential tenants — with 15,000 square feet of office space and 15,000 square feet of small business start-up space, along with 30,000 square feet of retail space. “The idea of placing a state-of-the-art Innovation Center in the historic Woolworth’s Building at the heart of the downtown,” explains Stephen M. Barrouk, president and CEO at the Greater WilkesBarre Chamber of Business and Industry, “was to highlight the area’s historic past while creating a place to foster entrepreneurship and combine that with the creative talent, energy and resources of the area. We want this facility to be a catalyst for growth and a symbol of positive change for the downtown and for the region.” “The goal of the Innovation Center @Wilkes-Barre project, managed by the Greater Wilkes-Barre Chamber as part of the Great Valley Technology Alliance initiative, is to stimulate the local business economy and create employment opportunities.” “In fact, the incubator is designed to provide a fully-equipped, nurturing environment for technology-based businesses in their first three to five years.” “Whether you’re a student just thinking about starting their own firm or a professional with a business dream, the Innovation Center@Wilkes-Barre offers start-up companies a chance at success,” Barrouk says. The Chamber’s Web site, www.wilkes-barre.org, provides a wealth of information on the community and on projects like the Innovation Center@Wilkes-Barre. Battipaglia to speak at NEPA’s annual dinner World famous market strategist, Joseph V. Battipaglia, executive vice president and chief investment officer for Ryan, Beck & Co. LLC, will be the keynote speaker for the 39th annual dinner of the Northeastern Pennsylvania Alliance on Thursday, September 11. With regard to the September 11 attacks, Battipaglia will discuss the effects of the war on terror from a financial perspective. He will focus on the financial health of the consumer, business, and government. Concerning the economy, Battipaglia will share his extensive financial knowledge by exploring how the U.S. economy is positioned to perform in the next 12 months and he will present forecasts of interest rates, bonds, and equities. He will also be able to elaborate on Federal Reserve policy and the value of the dollar. Featured frequently in national media, including CNBC, CNN, Fox News and the Nightly Business Report, Battipaglia speaks regularly with reporters from The New York Times, The Wall Street Journal, and other publications where his market views are often quoted. Battipaglia is the chief investment strategist and spokesperson on investment policy for Ryan Beck& Co. LLC, a subsidiary of Bank Atlantic Bancorp (NYSE:BBX). Battipaglia is the former chairman of investment policy at Gruntal & Co. LLC, where he conducted strategic market and economic analysis in support of the firm’s retail network and institutional presence. Ryan, Beck & Co., acquired certain assets and related enti- ties from Gruntal & Co., in 2002. Prior to joining Gruntal in 1984, he was a financial analyst for the Exxon Corporation and worked as a securities analyst at Elkins & Co., a division of Prudential Bache. Battipaglia Battipaglia graduated Phi Beta Kappa in economics from Boston College and earned his MBA at the Wharton Graduate School of Business, University of Pennsylvania. He is a trustee of the Securities Industry Institute, which is the Security Industry Association’s premier leadership and management education program. Cost for the event is $50 per person, which includes dinner entrée as well as hors d’oeuvres during a mini expo of NEPA’s programs and services prior to the dinner beginning at 4:30 p.m.The program will begin with a video presentation of NEPA’s clients and an award presentation of the first John. J. Luciani regionalism award, to be bestowed annually. Battipaglia will make his presentation following dinner.The event is being held at the new Hilton Scranton and Conference Center,Adams Avenue, Scranton. For more information, visit the NEPA Web site at www.nepa-alliance.org/annual dinner or call (570) 655-5581. Publication examines work, play By Howard J. Grossman, AICP In a publication issued by the Schuylkill Chamber of Commerce as part of the Stay Invent the Future program of the Pennsylvania Department of Community and Economic Development, the job market is portrayed for northeastern Pennsylvania.The publication of the 17page report demonstrates both the recreational and employment opportunities and is aptly titled “Work and Play in Northeast Pa.” County by county, including Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill, and Wayne are defined as places we call home, and information is presented about places to play with pop up quizs shown, fast facts about the county and region, and exciting data that can be utilized as part of the regional marketing strategy that is being processed by Penns Northeast and its newly expanded activities that were announced a few months ago. Successful stories are shown about people and companies that are part of the region. The document outlines the places to learn in the region including 22 colleges and universities and 11 career schools that define the wonderful array of higher educational institutions and schools that offer a wide ranger and diversity of courses that can continue to train prospective employees who may wish to find work in the region. One of the outstanding features of the report is the listing of Web sites that can be tapped to find electronic information at a fingertip.This dimension of data support is an important and key link to the ability of local and out of town students and others to immediately secure the database that will assist them in decision making regarding the extension of their education, or the reasons why northeastern Pennsylvania is truly the place to work and play. Perhaps, however, the most critical portion of the report is the information about places to live, places to work, and the job market survey that are presented in the latter section of the document. For example, the information shows the rental comparisons between northeastern Pennsylvania and national statistics. The range of rental comparisons between the region and national statistics as a result of the year 2000 Census shows median monthly rental in the PoconoNortheast as being $324 to $682 with the City of Pottsville being the lowest and Milford in Pike County being the highest. These data, however, are quite low across the board compared to many other larger cities such as San Francisco, Arlington,Virginia, San Diego, and New York City that range from$705 to $928. Crime rates are demonstrated with information based on an index that is a weighted average of the relative frequency of crimes per capita of five types including homicide, robbery, rape, aggravated assault, and motor vehicle theft. The crime indexes within the seven counties are all significantly below many national cities.The regional index ranges from 5 to 114, while the crime rate index for larger cities across the nation with seven examples shown as being in a range from 172 in San Francisco to 469 in Washington, D.C. A value of 100 means that the city is exactly average.A value of 200 means that the city has twice the crime rate as the average city. Source for this data is Homefair.com, February, 2003. Salary comparisons are shown with equivalent data between national cities and those in this region.The data clearly demonstrates that earning, for example, $40,000 in Washington, D.C. for a standard of living is related to a comparable standard of living in northeastern Pennsylvania of $24,341.25, with similar comparisons for other cities nationally and the region.Again, the same source is used as was the case with crime rates. Northeastern Pennsylvania is home to major incubators that grow companies and provide services to help young firms develop.Assistance is available for the sharing of conference rooms, kitchen space, copiers, and other office equipment.Young companies are limited to how long they can stay in the incubator space.The region is home to the following incubators including the Carbondale Technology Transfer Center, the East Stroudsburg University Business Accelerator, the Pottsville/Schuylkill Technology Incubator, and the Scranton Enterprise Center Business Incubator. These examples will be added to with one under construction renovation in the City of Wilkes-Barre. Incubators go back many years, and the ones listed are second generation incubators that are the newest and best of the types that have been previously initiated. The Northeast Pa. Job Market Survey is summarized in the report.This data is based upon a Northeastern Career Opportunities project with selected employers across the region asked to participate in a job market survey. They were asked to identify the current and future job opportunities available to regional graduates and graduates over the next three years. Nearly four out of 10 survey respondents offer college/university internships and one out of four provide high school/vo-tech co-ops, and one out of five offer apprenticeship programs. One example of an occupation needed in the region is the nursing profession. Over the next three years, 703 registered nurses, 309 practical nurses, and 664 certified nurse assistants and personal care aides will be needed. Employers plan to hire staff over the next 12 to 18 months in at least 78 percent of the employers surveyed.The number of full time employees needed over the next 12 months were defined as 3.5 percent overall with projected demand for each county ranging from 1.1 percent to 7.7 percent. Over the next 18 to 36 months due to company growth and expansion, employers predict in the region that nearly 2 out of 3 new employees recruited will be full time. Nearly three thousand new employees will be needed across the PoconoNortheast’s seven counties. This document demonstrates a clear message. Despite the recent economic downturn, there is growth likely to occur in the region based upon the employer survey. A Web site can be contacted to see more information about the results of the survey at www.workplaynepa.com. The Markle Building 8 West Broad Street, Hazleton, PA 18201 NOW LEASING! In the heart of downtown Hazleton... 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In northeastern Pennsylvania it has become extremely popular — even traditional — to make an annual visit to the “pumpkin patch.” Area farms and orchards have capitalized on this love of the season in many unique ways, creating a variety of fall experiences for their customers, with the help of Mother Nature. T Roba’s Tree Farm and Pumpkin Patch The Roba family of Dalton anticipates a busy season as families turn their attention to the activities of autumn. John and Sue Roba have been building their business since 1985, when they began planting “balled and burlapped” trees for sale throughout the year on their 100-acre Christmas tree farm. Since then the farm has seen considerable growth and each year a new attraction is added to entice families throughout the Halloween and Christmas holidays. “We were surprised at the growth in the Halloween-time business.We try to add something new each year and this year it is ‘Bunnyville,’” said John Roba. “Bunnyville” consists of miniature homes built especially for the rabbit population at the farm.A new Barrel Train, featuring a herd of “Holstein” cows constructed by Roba, will be pulled by tractor, transporting visitors from the barn to the pumpkin patch activities. “These attractions have been a real marketing tool,” Roba said. In addition to the A view of Roba’s corn maze. All photos this page except Robin Peregrim by Bob Urban hay ride, a staple of the pumpkin patch business, Roba’s boasts a petting zoo with real reindeer; a children’s playground; and a pick-your-own-pumpkin adventure. Another attention-grabber is the fourand--half-acre corn maze for which the family creates a new theme each year. This year, the maze’s theme is a “Barnyard Yard Adventure at Roba’s.” For the more adventuresome, the Flashlight Maze Adventure Night will allow them to try their hand creeping through the maze by moonlight with only their flashlight to guide them. The “adventure” comes with campfire, hot dogs and marshmallows included. This attraction, Roba said, has been very successful for the business. Of course, being dependent on Mother Nature never makes the business easy. “This year the spring was excessively wet but, fortunately, we have a welldrained area.We got two-thirds planted on schedule and one-third late,” he said.The farmer can only hope that there is no early frost to kill his 30-acre crop of pumpkins. An on-site, full-blown country store also offers a bit of the season with homemade jams, jellies, pies, and the beautiful wares of several local craftspeople. In addition to its success as a Christmas tree farm, the Roba family has found that the addition of their balled and burlapped trees to area landscapers has been another successful venture. As the doors close on the Halloween season, those of the Thanksgiving and Christmas seasons open for the Robas. Miller’s Orchards Farm Market The fifth generation of the Miller family anticipates a busy season this year and reports a good apple crop in the 25 varieties offered throughout the season. “It is a much better crop than last year,” said Robin Peregrim, who with her husband,Wally, operate the family business in Justus. The business owners have gone all out in planning the crop mazes that attract many visitors each year.The 10 acres donated to the mazes include a one-and-a half-acre maze for the younger set; a themed maze which differs each year; and a crop circle sorghum maze indicative of the landing of an alien ship in the middle of a field. Some may want to take aim with the farm’s unique apple slingshot or corn cannon. Others find delight in the “balRobin Peregrim reports “a good apple crop; much better than last year’s” at her business, Miller’s Orchards, in Justus. 14 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 John Roba tends his sheep, part of his farm’s petting zoo. At right is the zoo’s pot-belly pig. loon typhoon” of a blown up apple filled with balls, or a ride on the cow train pulled by the farm’s tractor, to pony rides on the weekends. The Peregrims also have a bountiful orchard business. “We have homemade pies, dumplings, apple cider, donuts, jams, jellies, honey, fudge and applesauce,” said Robin Peregrim. Fall ornamentals have also been a great seller at the store. The 110-acre farm is geared toward families and school groups. “It’s a family affair,” said Peregrim, who is a former school teacher.“We make agriculture fun,” she added.“School tours are my favorite part and my husband loves to talk to the people who visit us.” This year’s new addition to the business is a greenhouse, which offers a variety of plants from which to choose. Ritter’s Cider Mill From Labor Day to Christmas, chances are you will find Gary and Debra Ritter very busy at work in their business in Mount Cobb. Dairy farmers at heart, the couple had joined with Gary’s father and mother, Irving and Arlene Ritter, and created the orchard and cider business that they successfully operate to date. “We put a lot of hours in during the (fall) season,” said Gary Ritter, and the family business, in its 25th season, features hay rides,donut-making, a petting zoo, a corn maze and homemade apple cider from the farm’s press and tasty recipes, jams and jellies. The farm grows 12 different varieties of apples, including Macintosh, Red Delicious, Golden Delicious, Empire and Northern Spy. “It has become a tradition to visit the farm during the fall season,” said Ritter, and many of the activities on his farm are offered to the public free of charge. Many visitors find the fascination of the apple press worth returning to on a yearly basis, young family members in tow. Toiling year round to make the most of the farm and its offerings, hard work goes into the maintenance of equipment during the off-season and crop maintenance, such as planting and spraying, during the summer until 30 days prior to the harvest this month. “This year the weather has been fairly good for growing, and the crops have been better than they have been in past years.We have been spraying all summer to ensure no infestations,” said Ritter. The farmer and businessman also has another line of work which keeps him busy in the off season. He constructs 20bushel apple bins which are sold to orchard owners all over the country. Bunting’s Dairy Farm What began as a small idea has grown into a large one on a working dairy farm just two miles south of Honesdale. Gerald and Marcie Bunting, third generation family farmers, say it is a lot of work to ready themselves for the many visitors they receive between Sept. 20 and Oct. 26, but they are used to hard work: they tend a 120-head herd of dairy cows and keep a working farm. “It’s the real thing here,” said Marcie Bunting, and the couple has used that aspect to their advantage.“We give real live milking demos and farm tours to our patrons,” she added. The business also sells pumpkins, gourds and cornstalks. Two years ago, the farm welcomed visitors to their newly-begun “pick-your-own pumpkin patch” and it was met with great success. A “hay tent” also offers a fun time for all those who visit it, not to mention the hay rides and petting zoo on the farm. Another unique aspect is the antique tool and farm equipment display.The attraction depicts the hard work of farmers throughout the year. “We enjoy the people and try to keep it personal by interacting with them,” she noted.“We also try to educate children and adults about agriculture and a working farm.” John Roba feeds his reindeer. Scranton Chamber of Commerce seeks ‘Pride & Progress’ nominees The Greater Scranton Chamber of Commerce is now accepting nominations for the 2003 Pride & Progress awards. Since 1975, the chamber has recognized Lackawanna County’s public and private sector operations for upgrading their establishments, improving the appearance of their respective neighborhoods, and beautifying the region. Presentations are made in the following categories: Exterior Renovations Work must pertain to exterior improvements only and must express and accentuate the original architectural character and features of the building. Interior Renovations Work must pertain to the improvement of office, lobby, and/or other general areas/floors of a building. New Building Construction The facility must respond to the surrounding character of its respective neighborhood. Landscape and Site Design Plazas, squares, pedestrian malls, fountains, and sculptures are eligible, as long as the nominated structure is not directly related to a building that is under consideration in one of the other categories. Judging criteria requires that the nominated facility must be located within the chamber’s service area.The nominated facility must also be a commercial or pub- lic building, receiving its major funding from private sources and must have been renovated, constructed, or landscaped within the last two years.The restoration of private residences is ineligible. Nominations must be submitted with a brief project description and accompanying “before and after” color photos. The deadline for entries is Friday, September 26. Online registration is available in the Pride & Progress section of the chamber Web site at /www.scrantonchamber.com/news_events/. For more information contact Christina Fenton, at (570) 342-7711, or at [email protected]. WH AT CAN A G R A N D FAT H E R C L O C K Sunbury firm launches new product Q-Card, a Sunbury-based supplier of card testing services and equipment, announced the introduction of a new product to its extensive line of card testing products. The Mag3:Read-Only provides all of the mag stripe tests and checks needed to support any encoding production or issuing center. As its name implies, the Mag3:Read-Only tests only the encoding on the mag stripe, making it an economical solution for any facility that needs to verify the quality of its encoding processes. It does not test the quality of the mag stripe material itself. For that, Q-Card offers the Mag3:ReadWrite, which has established itself as the industry standard for full ISO mag stripe card testing. The Mag3:Read-Write is the newest generation of the original Mag3 Mag Stripe Analyzer that been serving card production and encoding operations worldwide since the early 1980s. The Mag3:Read-Only is easy to use and maintain. Its open architecture allows it to accommodate cards and tickets of any size and shape. It provides the highest level of accuracy and repeatability of any product available today. The optional MagStat statistical software allows users to track quality in real time and generate corrective actions and quality reports for management, customers and suppliers. Complete technical specifications are available at www.q-card.com. Hawley’s Main Street greets new business The Hawley-Lake Wallenpaupack Chamber of Commerce recently welcomed a new business to downtown Hawley. Bill’s Rubber Stamps & Gifts is located at 221 Main Avenue Hawley and offers a wide variety of gifts. Seen at the grand opening were, left to right, Cindy Chumard, Hawley-Lake Wallenpaupack Chamber executive director; Anna Smith, store owner; Destiny Cruz; Bob Smith and children Kaitlyn, Bobby and Nicky; and Dr. Lorraine Kloss, Hawley-Lake Wallenpaupack Chamber board member. TEACH US ABOUT F I NA NC I A L P L A N N I NG ? All actions should be synchronized Is there an unwritten law that states the more More important, you experience active planning. wealth you accumulate, the more financial Your situation, as well as the overall financial plans you need? A plan for investing, one landscape, is constantly monitored. So even the for insurance, another for taxes. Each more slightest changes in one area may lead to complicated than the next. At Wachovia Wealth adjustments in another. All moves are in step Management, we subscribe to a more integrated with your desired goals. way of thinking. A dedicated Relationship Manager coordinates the efforts of Certified For nearly 200 years, successful individuals and Financial Planners, CPAs and other specialists their families have turned to the financial specialists to develop a single comprehensive plan that of Wachovia Wealth Management. Talk to us. incorporates all aspects of your financial life. Together, we can achieve uncommon results. Wilkes-Barre and Scranton: Catherine Charnitski, Principal, 570-283-9718. Uncommon Wisdom © 2003 Wachovia Corporation NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 15 Sunbury struggles for revitalization City’s ‘Happy Days’ feeling part of its charm By Kathy Ruff The seat of Northumberland County boasts international fame with an ‘electric’ history. On July 4, 1883,Thomas Edison chose Sunbury as the place to demonstrate his experiments when he illuminated the first three-wire electric lighting system in a commercial building at the former City Hotel, now the Edison Hotel. Today Northumberland County is known best for Knoebels Amusement Resort, the largest free-admission amusement park in Pennsylvania, which attracted over 1.2 million visitors last year. “That’s our greatest asset because you really have people coming from all over,” says Tom Kutza, director for the Northumberland County Tourist Promotion Agency.“The second biggest attraction would be the Pennsylvania State Sportsmen’s Association’s ‘Pennsylvania State Shoot,’ target shooting.”The annual event draws shooting enthusiasts from across the country. While attractions bring in tourists, economic and lifestyle factors continue to create an exodus of residents in the rural county. Northumberland County realized a 6 percent decrease in population over the past two decades, falling from 100,288 in 1980 to 94,556 in 2000 according to census records. “Sunbury is a really old city,” says Jim King, executive director of the Northumberland Industrial Development Authority.“Being an old city, a lot of the housing stock is old. So, as people become more affluent, they want to buy a plot of land and put a house on it. They don’t want to live in a city, house on top of house.” The declining county population stems not only from the American dream of a house with a white picket fence, but also from the erosion of its traditional industries, including coal, rail, textiles and manufacturing. Ironically, the county’s largest single employer, Butter Krust Baking Co., is manufacturing. Another business anchor since 1912 is Weis Markets, a supermarket chain that bases its operations from Sunbury.“The supermarkets employ lots of people, but the fact that we have the corporate headquarters is definitely a plus to Sunbury,” says King. Another backbone employer bucks the countrywide trend of declining manufacturing. Sunbury Textile Mills, which provides specialty decorative jacquard upholstery fabrics for decorators and distributors throughout the world, employs 260 people and contributes an annual $9 million payroll to the local economy. “We’re a little different,” says Henry “Hank”Treslow, Sr., chairman of Sunbury Textile Mills Inc.“We make to order only and we make limited volume.We’re not completely protected from these unfair imports, but we’re in a different sort of business than most of those that have Northumberland County is best known for Knoebel’s Amusement Resort at Elysburg. Shown above is an aerial view of Knoebel’s “Twister.” 16 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Keithan’s Blue Bird Gardens, located on a 1.5-acre tract between South Front and South Second streets in Sunbury, displays rare species of trees with mountains of brilliantly colored azaleas and rhododendrons. been affected so far.” Treslow credits the company’s success to the area’s quality work force and strong sense of community.“The demographic is changing a little, but I still tell people we live in a 1952 Saturday Evening Post cover,” he says.“That was the ideal lifestyle back in the 50s, sort of the ‘Happy Days’ environment. It has changed very little.” Evidence of little change is reflected in the abundant mix of Sunbury’s architecture, where most buildings pre-date 1930 and include Colonial,Victorian, Queen Anne and Art Deco styles. “A lot of people that have lived here their whole lives, born and raised here, don’t seem to realize the beauty of the architecture and the layout of the city,” says Mark Walberg, restoration specialist and owner of Walberg Fine Arts and Antiques. But the city’s business demographics changed as downtown “mom-and-pop” businesses succumbed to the lure of the Susquehanna Valley Mall in nearby Hummels Wharf. Retailers continue to struggle while trade school educational facilities sprout, offering expertise in business, welding, electrical wiring and nursing. “For this area, since the cost of college degrees and college institutions is so high now, we’re seeing a trend of trade schools coming in,” says Walberg. He feels high-tech, Internet-based businesses may create the foundation for the city’s future growth.“Then you don’t depend on people actually in your community for your income.” Diversity may be the county’s ticket, but others focus on redevelopment. “The county itself is so diverse that there’s actually competing interests within it,” says John Shipman, partner with Shipman Harpster Anderson, Selinsgrove, insurance and financial services.“We’re hard at work on a redevelopment project to revitalize the riverfront with an amphitheater and some other interesting features.” A city neighborhood rehabilitation project to identify and address strengths, weaknesses and opportunities promotes revitalized neighborhoods. “It gets the citizenry involved,” says Shipman.“This is an effort to get a bottom-up grassroots kind of activism.” Community groups hope to reverse the economic setbacks which started in the 1950s when railroads, textiles and manufacturing declined.“Recently there has been a real push to rebuild the city, to revitalize the city,” says Shipman.“Sunbury is a city on the rise.” Northumberland County Facts ■ The covered bridge entering Knoebel’s Amusement Resort campgrounds was built in 1875 over West Creek near Benton, Pa. Lawrence Knoebel bought it at auction for $40 in 1936; ■ The Joseph Priestley House (built in 1794) in Nor thumberland stands as a testament to the lifestyle of the famed theologian and scientist who discovered oxygen and is considered the founder of modern chemistr y; and ■ In the mid 1700s, Fort Augusta was built as a military fort to resist Indian attacks. The fort was Susquehanna Valley’s strong hold from the days of the French and Indian War to the close of the American Revolution. The ‘bang’ of broadband By Leigh Ann M. Jacobson At last count, there were nearly 122 million home Internet users and, among them, there has been an accelerated global broadband consumer adoption rate. “Throughout our partnership, broadband — namely high-speed cable modems — has outpaced our dial-up sign-ups over the past year by a two-to-one margin,” says Dean Hosier, marketing manager, PenTeleData, Palmerton, Carbon County. PenTeleData is an Internet, networking, security, consulting and data transport provider that serves Pennsylvania and New Jersey with voice, video, data and Internet products and services. “Two main benefits of broadband for the customer are the constant access to the Internet and speed, allowing faster downloads of large files, and immediate access and quicker approvals when buying items on sites like E-bay or making stock purchases,” explains Hosier. “It’s instant satisfaction.” “You can push more content to the user’s PC, offer customers immediate gratification on purchases by letting them download large software, audio and video files that they purchase online immediately,” agrees Brian Mengel, director of engineering, PenTeleData. With the increased take up of broadband, a company’s Web site can now utilize the power of the moving image with sound — voice and music. Businesses are able to enhance a static site and transform it into a dynamic 3-D experience to efficiently show, share and communicate their products, services, and expertise to their targeted audience. “Businesses need to be aware that an increasing number of residential customers are choosing broadband access. Since broadband service is traditionally more expensive than dial-up, one could conclude that these individuals are also the ones with money to spend,” notes Mengel. “Finding a way to target broadband users could be the key to taking an advantage in online business. Historically, businesses tried to make their sites load as quickly as possible by keeping the amount of content down, keeping image sizes smaller. Now they can make a bigger impression with more bandwidth-intensive applications, such as DVD-quality streaming audio and video, intensive Flash animations, and target broadband users,” explains Mengel. “Streaming” video allows the user to begin viewing the video in seconds by delivering the data in small packets which are buffered and then discarded after viewing is complete. Streaming video also ensures that the video will continue to play regardless Marketing opportunities on the Internet for companies are enhanced by broadband service because constant access and speed allows “instant gratification” for customers, says a regional marketing manager. Graphic designed by PenTeleData. of network congestion and bottlenecks. Cost effectively, a Web site can become a company’s “TV station,” hosting their own programs, made with modern digital video. For example, a housing developer can Broadband continues on next page NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 17 Broadband Continued from previous page Instant messaging becoming more appealing among business people show its available properties mixed with soft images, such as flowers, detail, fabrics, furnishings, appliances and so forth, to entice purchasers through the door to visit and return to the Web video later to refresh their memories. With the bang of broadband, according to Hosier, it is still uncertain as to whether video is selling products locally. “This (online video selling products) is still to be seen or proven locally,” observes Hosier. “Recently, presidential candidate Howard Dean proved the value of good marketing with a good Web site. In two important ways, Dean’s Web site allowed people to hear about his campaign by watching a video and the ability to download speeches and material in a variety of formats.” As for the costs of broadband and its associated advantages, like offering video on your Web site, Mengel explains,“The two biggest costs are development and bandwidth. Developing high quality audio and video for download is much more costly than editing a few images and tossing them up on a Web site. Bandwidth is also a large concern.” Web hosting companies put a monthly cap on the amount of data that can be downloaded from a hosted site. “For example, if you offer a 10 megabyte video file for download, and have a one gigabyte monthly limit on downloads, that file can only be accessed 100 times before you’ve reached your limit,” explains Mengel. “Hosting companies will charge Web site owners for transfers above their monthly allotment. With some sites taking hundreds of thousands of hits a day, the amount of bandwidth needed to cater to broadband customers can be staggering and costly,” he cautions. Managing broadband is also another concern for businesses. Companies need to learn about digital rights management, billing systems, ad insertion, player licenses and storage space, not to mention network latency and bandwidth management. “In the current economy, I believe cost-cutting is outweighing the benefits associated with a professional Web site with all the bells and whistles,” says Hosier. “Businesses would, of course, do well to keep in mind that dial-up is still very prevalent, and won’t be going away anytime soon,” Mengel says. Other local ISPs also offer broadband services to residential and business accounts. For example,Adelphia offers Business Solutions Dedicated Internet Services and Epix offers high speed access via Jack Flash DSL. By Andrew Ohrman Just when business adapts to one form of computer technology such as e-mail, a relatively new, specialized form of social software known as “instant messaging” (IM) challenges the way business is done. Instant messaging first gained notoriety as a special feature of America Online, used by teenagers as a fun, convenient way to text chat with each other. Despite security and archival concerns, instant messaging is sneaking into the work place as a communication tool used by adults. The type of instant messaging software that corporations permit on their PCs can be a great productivity booster, or a way for employees to waste time and potentially risk exposure of sensitive information to eavesdropping hackers on the Internet. What is so appealing about this popular teenage software that has it infiltrating finance, medicine, government, and even the aerospace fields? Several things, according to Rich Rippon of NetVoice Services (www.nvds.com), located in Clarks Summit, make instant messaging appealing among professionals: First, instant messaging is a lot easier and literally “instant,” without any delays like regular e-mail. Second, instant messaging software displays a list of users currently available to chat.Try doing that with a busy telephone, or hiking throughout the company building looking in offices for coworkers available to talk. Third, group-style chat meetings are possible any time, anywhere with the ability to send files and even uti- KEY ISP FEATURES FOR SMALL BUSINESS (One to 100 workers) Always-on unlimited broadband service (ADSL, SDSL, T1) at 1.5Mbps or faster. Support for Microsoft Outlook, Lotus Notes, and other corporate e-mail programs; instant messaging. Multiple static IP addresses for Web and email servers and for supporting VPNs. Multiple e-mailboxes, domain name registration and hosting, Web hosting. 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Source: CNET Editors’ ISP Buying Guide, August 18, 2003, www.cnet.com Broadband Usage Trend 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 Month Total U.S. Broadband Users (in Millions) Jul-03 Jun-03 Mar-03 Apr-03 May-03 Jan-03 Feb-03 Oct-02 Dec-02 Sep-02 Nov-02 Jul-02 Aug-02 Jun-02 Mar-02 Apr-02 May-02 Jan-02 Feb-02 Oct-01 Dec-01 Nov-01 Sep-01 Jul-01 Jun-01 Aug-01 Apr-01 May-01 Jan-01 Mar-01 Feb-01 Dec-00 Oct-00 Nov-00 Jul-00 Sep-00 Jun-00 Aug-00 May-00 Mar-00 Apr-00 Jan-00 Feb-00 0.00 Dec-99 Total US Broadband Users in Millions Broadband Usage Trend 45.00 Most free instant messaging software provides little or no security from outside eavesdropping by Internet hackers, and it lacks efficient, network-wide archiving features. This is why feebased proprietary instant messaging software is better suited for businesses, says Chuck Lundquist of MWISP.NET (www. mwisp.net), located in Carbondale. lize voice and video. On the flip side, instant messaging can be a significant hindrance and security risk for businesses, when employees do their own unauthorized installations of free instant messaging software on their company’s PCs without the company’s knowledge. Productivity can be affected when an employee spends excessive amounts of time chatting with friends and family on the Internet. Another black mark against most free instant messaging software is that it provides little or no security from outside eavesdropping by Internet hackers, and it lacks efficient, network-wide archiving features. Chuck Lundquist of MWISP.NET (www. mwisp.net), located in located in Carbondale, points out that this is exactly why fee-based proprietary instant messaging software is better suited for businesses. Software packages like Ariolic Software’s NTPager or Sonork’s Enterprise Instant Messenger are proprietary instant messaging solutions that provide robust security, and easily implemented and scalable network-wide archiving. Most importantly, these packages can limit users text chatting to coworkers and colleagues within the company network, thereby focusing the attention of employees on work instead of family and friends. Government and corporate policies often mandate storage of many kinds of correspondence, including IMs and any accompanying legal disclaimers. Even if a company purchases secure, easily archivable proprietary IM software, issues of space requirements on network servers and the additional network administrative duties for satisfying these government and corporate regulations raise additional questions. However, Lundquist confidently states, “In general, legal disclaimers can be easily and automatically tacked onto any relevant e-mail or instant message. Archival space for referencing e-mail and instant messages is really no longer a concern. Since IMs and any included disclaimers are just plain text and don’t have bulky attachments, physical space for such correspondence are minimal.” For example, almost 300 IMs could fit on a single 3 1/2 inch floppy diskette; and a single 20 GB (gigabyte) hard drive of an average PC or Mac could easily hold millions of IMs (based on a 5K (kilobyte) file size for one IM). The real challenge for network administrators, according to Lundquist is coordinating and planning archival routines during the initial “spin-up” phase of a company’s evaluation and/or adoption of a particular instant messaging software package. Once archival and disclaimer add routines are developed and in place, an administrator’s work is considerably automated. The hard fact is that instant messaging is here to stay, so business needs to address and adapt to the proliferation of instant messaging on its own networks, because, like a double-sided sword, IM can either increase productivity by making communication among colleagues and coworkers considerably more efficient; or it can subvert your business by giving your employees a tool for unknowingly leaking sensitive information while they waste time kibitzing with family and friends from their “buddy” lists. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 18 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 19 THE MONTH IN BUSINESS Local About 4,000 area college students currently receiving $9 million in annual financial aid face possible cuts when a new federal plan takes effect next year. Congressional Research Service, the research division of Congress, reported the government's tax table revision used to determine eligibility for the Federal Pell Grant will reduce the program’s funding by $270 million beginning in 20042005. The U.S. Department of Education estimates about 84,000 students will no longer qualify for aid because their expected family contribution, or EFC, will exceed the maximum amount. The change will cut financial aid for more than a million students, national financial aid experts say. Pell Grants are federal need-based financial aid awards that do not need to be repaid. At a maximum of $4,050, they are available to eligible full- and parttime undergraduates and are based on a set multifactor formula, including family's ability to pay and cost of attendance. Pell Grants are designed for the “neediest of the needy” college students, said William Burke, financial aid director at the University of Scranton, where 738 students received $1,775,998 in grants last year. He said colleges and universities have not yet determined the specific effects on their schools when the change occurs next year, but the formula used to determine Pell and other federal college funding is also the basis for the state and institutional financial aid awards programs."Pell is the foundation upon which all need-based programs are built," he said. "It can have a real domino effect." An example, he said, is that since schools "need to address those needy students," some money from need-based funds will go to students no longer eligible for government funding. This could potentially reduce the total amount available for those of slightly higher income, but for whom college costs are still a burden on the family savings. He said the Pennsylvania state grant program bases its financial aid disbursement process on the Pell Grant award and other federal aid information. But because states have limited budgets, they can rarely increase student financial aid enough to bridge the gap left by a federal funding decrease, Burke said. "Hopefully, since it is supposed to affect those with the highest EFC, who are receiving the least amount currently, those with the lowest EFC who are receiving the largest awards should still be eligible," said Peggy Charnick, financial aid director at College Misericordia, where 504 students received more than $1 million last year. Individual institutions typically use the federal and state awards to determine need-based scholarships, loans and other forms of aid. But Charnick said schools face problems similar to governments. "We'll try to help, but we can't match that money dollar for dollar," she said. Charnick said the federal education department is responsible for shifting the tax tables to determine aid eligibility based on state and local taxes. But the tables have not been updated for three years, she said, creating more changes than previous adjustments. About 4.86 million students nationwide are estimated to receive a Pell award in 2003, said Jane Glickman, spokeswoman for the federal education department, up from 4.81 million in 2002. The state education department did not have figures for Pennsylvania. As more "needy" students continue to apply for grants, though, officials expect more Pell Grants to be awarded. “The important thing is that the money in the program is going up. The number of recipients is going up,” Glickman said. “More people will qualify because more people are going to school and more people are needy.” The congressional report estimated 300,000 additional people will qualify for Pell Grants because of the tax shift, offsetting the 84,000 current recipients expected to lose their eligibility. Across the Pennsylvania State University system, 15,361 students received nearly $35.5 million in Pell funding in 2001-2002, said Anna Griswold, assistant vice provost for enrollment management and student aid. She said a preliminary report showed that number increased to 16,417 in 2002-2003, but a dollar amount was unavailable. She said 2001-2002 figures show the 505 Pell recipients at the Worthington Scranton campus received $1,052,813, and the 214 at Wilkes-Barre received $493,951. At Keystone College, 686 students received Pell Grants last year, totaling $1,457,511. At Marywood University, 517 students will receive $1,390,947 this year. “The biggest burden...is on the family to find alternate resources -- outside scholarships, other agencies, higher loan borrowing,” said Keystone College financial aid director Ginger Kline. - Sapna Kollali, The Tribune The Old Forge School District superintendent told parents the district continues to implement programs to improve education. Gene Camoni, Ed.D., told parents who attended last month’s school board meeting that new programs range from more training for teachers to targeting students who need remedial help. Parents addressed the board at its first meeting since the “Grading Our Schools” report was published in the June 29 editions of The Sunday Times and The Sunday Voice. The analyses of each district included a look at the district's standardized test scores, school environment, academic programs, extracurricular activities and other factors in assessing student achievement and success. Old Forge received an “F” grade, having failed all seven analyses. Camoni said Old Forge wasn't prepared for the Pennsylvania System of School Assessment, nor the federal No Child Left Behind standards signed into law Jan. 2, 2002. Local officials applauded when a discount retailer announced two years ago it planned to open a distribution center. But in the two months since the T.J. Maxx facility opened in the Grimes Industrial Park in Pittston Township, excitement has turned to frustration. And now all three supervisors — Chairman John Paglianite, Joseph Adams and Anthony Attardo — say they will protest by skipping the company’s ribbon cutting Aug. 27. TJX Companies Inc. offered 1,200 new jobs — 500 have been filled so far — and was awarded with a tax-free Keystone Opportunity Zone. The supervisors said the company led them to believe the jobs would pay at least $8 to $10 an hour to start, with increases every six months. But the company only pays $6.50 per hour. And the local officials say the company has snubbed local residents for jobs. Fewer workers living in the township means Pittston will not see earned income tax revenue. Nor will the township see property tax revenue from the company for the next decade — a KOZ benefit. "We gave them all the help they needed, a KOZ, we helped them A to Z,” Attardo said. “I had people approach me and ask, ‘Can you get me an application?’ or ‘Can you give me a referral?’ For every one of our referrals, there was a deaf ear turned.” Attardo said he knew of a lot of township residents who are out of work and could use a job. He said company officials told the supervisors the jobs would pay $8 to $10 an hour and would be upgraded periodically, the supervisor said. “(Jobs at $10 an hour) are not great-paying jobs, but it could help support a family.” Adams said he understood pay was supposed to start at $11 an hour. “That was the statement that was made in the beginning,” he said. TJX spokeswoman Laura McDowell of the corporation's Framingham, Mass., headquarters, said the company does not publicly discuss specific compensation. “Salaries vary from associate to associate,” McDowell said, and “$6.50 is one of the starting salaries.” McDowell said most of the employees working at the distribution center are from the Pittston, Scranton and Wilkes-Barre areas. According to company figures, the center, which serves over 720 T.J. Maxx stores throughout the United States, currently employs 521 full- and part-time employees. That number will increase to 750 by the end of the year. McDowell said the center would employ 1,200 within three years. Attardo said even the company executives who moved to the area to run the distribution center did not move to the township. “There's no or little earned income tax,” Attardo said. “We got nothing out of it. Our taxpayers are paying for police and fire protection for them. We never got consideration.” Nearly 100 trucks will travel to and from the distribution center each day. The company wants the township to take over the road leading to the distribution center, but the supervisors don't want it. Mr. Adams said the township already has enough roads to maintain. “They're going to plow it themselves and clear it,” Attardo said. “How much do they expect from taxpayers?” T.J. Maxx, the nation's largest off-price retailer, operates more than 660 stores in 47 states, including one on Commerce Boulevard in Dickson City and another in the Arena Hub Plaza in Wilkes-Barre Township. There are 59 stores in Pennsylvania. - Joe Sylvester, The Scranton Times The Department of Veterans Affairs Medical Center in Plains Township is spared from closing or other major changes in a draft version of a federal report that reviewed the VA health care system. “For our facility, there's no immediate impact,” hospital spokesman Vince Riccardo said. “That's the preliminary report, and they will take testimony and come up with a final report,” said U.S. Rep. Paul E. Kanjorski, who organized veterans to promote the local hospital at hearings. "I think we're in good shape." The local hospital expanded its services last month when a veterans clinic opened in Bangor in Northampton County, Riccardo said. The department issued the draft National CARES Plan last month. CARES stands for Capital Asset Realignment for Enhanced Services. That's what the VA calls its effort to take an inventory of all its facilities. Nationwide, the report recommends 48 new community clinics, two new hospitals and the expansion of many other facilities. A July 1999 General Accounting Office study found the VA was spending $1 million a day on unneeded or unused facilities, according to a VA news release. “The result of CARES will be more health care for more veterans, closer to where they live.” 20 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 The National CARES Commission will hold hearings across the county to hear comment on the draft report. The nearest hearing to Northeastern Pennsylvania is Aug. 28 at 10 a.m. at the VA Medical Center in Coatesville, a Philadelphia suburb. The local VA, which has an annual budget of $130 million, has 89 hospital beds and 105 nursing home beds. - Borys Krawczeniuk, The Scranton Times National energy distributor Southern Union Co. cited Scranton’s economic resurgence as the main reason for its decision to move its headquarters from Wilkes-Barre to Lackawanna Avenue. The company announced last month it will spend $8 million to $10 million to build its corporate headquarters downtown and provide up to 100 high-paying jobs. As part of the construction, Southern Union will knock down the former WYOU building at 415 Lackawanna Ave. and the neighboring Gallucci Music Studios/Steamtown Trading Post building, both of which the company purchased last week — and build a 40,000-square-foot facility. Reasons for relocating to Scranton included location, quality of life, cost, KOZ tax benefits, access to downtown amenities, and the company's ability to construct its own facility to suit its needs. The company was ranked 61 in Fortune magazine's “100 Fastest Growing Companies” list in 2002. The building will house Southern Union’s executive offices and most major corporate functions including accounting, treasury, tax, investor relations, human resources corporate communications, information technology, purchasing, fleet management and legal. The company will move approximately 30 corporate employees from its Wilkes-Barre offices and expects to add another 50 to 75 positions by the time the Scranton office opens. Southern Union is the parent company of PG Energy. Mayor Chris Doherty signed off on a historic $72.3 million bond issue — the city's largest and first-ever with a bond rating — that will revitalize Nay Aug Park, build new police and public works headquarters, and refinance old debt. “It's an infusion of cash into the city . . . without increasing our costs,” Doherty said. He signed his name about 100 times to complete the closing, making the bond money immediately available. Included in the lump sum is $12 million in new borrowing, set aside for capital improvements, $1 million for Nay Aug Park — including observation decks along the Davis Trail — and $1 million for other city parks. Another $13 million was put into the workers' compensation self-insurance account, $10 million went to pension funds and $7 million helped pay off a 4year-old pension management advance from Provident Mutual. The bonds were sold on the open market about a month ago, Doherty said. Fluctuations in the bond market have already earned the city about $1.5 million, which it will use to pay off debt service, he said. “Before, we were at junk bond status, but by refinancing at Triple-A status, we were able to bring a lot of money into the city,” Doherty said. He said construction of the DPW building, at a cost of about $3 million, will begin in late September or early October. The new police headquarters, which costs $2.5 million to $3 million, is currently in the design phase and there is not yet a proposed location. About 200 streets are scheduled for paving, which is also included in the capital improvements money, and will go out to bid shortly. Doherty said the bond money must be used within three years for the purposes specified when it was issued. - Sapna Kollali, The Scranton Times Col. Patricia E. McQuistion surrendered her job as commander of the Tobyhanna Army Depot to Col. Tracy L. Ellis for her next assignment as executive officer for the deputy commanding general of the U.S. Army Materiel Command. Ellis’ most recent assignment was in Saudi Arabia as chief of staff of the Friendly Forces Coordination Cell of the U.S. Central Command (Forward). Both officers say the region's largest employer is a good bet to survive the next round of military base closings in 2005 because it maintains electronics systems for all the military's branches. They emphasized Tobyhanna's role in maintaining equipment used by troops in the wars in Afghanistan and Iraq. “We're in a very strong position," McQuistion, 45, the depot's commander since July 2001, said after a formal morning change of command ceremony during which she fought back tears while thanking many who aided her tenure. “We think this depot's going to be around for many, many years to come. ... It's all based on military value and Tobyhanna certainly has great military value.” Ellis, 44, Tobyhanna's 27th commander, called the 3,400employee depot “a world-class organization” and said it's the best in the Defense Department. He emphasized the depot’s key advantage over private contractors: the ability to gear up for jobs without the delay of seeking private bids. “If you look at the effort of depot employees in support of the war effort right now, it just validates the importance of having depots, having that responsive, ready capability that can go at a moment's notice,” Ellis said. He isn't looking forward to the battle necessary to keep the depot open when the next Base Closure and Realignment Commission convenes, but said Tobyhanna will put its “best foot forward.” He's aware of the depot's $480.6 million annual economic impact on the region, including an estimated $171.6 million in salaries. "I understand that and I think that as long as we can show we're a world-class organization that's providing the type of support that our nation needs, that the depot is relatively safe," he said. "There is not another depot out there that can replicate the type of missions that we're doing, the types of programs we're supporting for our war fighters." Some of the programs were undertaken under McQuistion, who led the depot after Sept. 11, 2001. The programs include socalled lean initiatives to make depot processes more efficient and developing the Blue Force Tracking System that helped troops avoid friendly fire casualties. Born into an Army family, Col. McQuistion spent her earlier years at various bases in the United States and Europe. Col. Ellis was born at the Itazuke Air Force Base in Fukoka, Japan. DigitalGlobe has chosen Wilkes-Barre as the location for its next satellite image receiving station. Rep. Paul Kanjorski said, “We envision that the location of a resource like the DigitalGlobe ground station, and the data it provides, will create more opportunities for businesses to locate in the area and create new jobs. In addition, the data will assist government and the business community in planning future economic development projects.” DigitalGlobe is an earth imagery and information company based in Longmont, Colo. State Philadelphia-based Pep Boys closed 33 stores and laid off 860 employees last month in a restructuring the company said will save $11 million a year. About 700 store employees lost their jobs because of the 33 closings— about 5 percent of Pep Boys’ 629 stores. The company will close stores in 13 states, including 11 in California, five in Texas, four in Florida and three in Pennsylvania. Another 160 corporate employees were laid off to streamline the management structure, the company said. The restructuring is the first major announcement under chief executive Lawrence Stevenson, who was appointed in May. Stevenson said the low-traffic stores being closed either had misjudged the market to begin with or saw their customer base move away. Pep Boys once employed more than 28,000 but now employs about 22,000. “Nobody enjoys doing what we're going to be doing today, and clearly not the employees involved, but it's necessary for us to go the next step and return to profitability and growth,” Stevenson said. Peter Land, a Pep Boys spokesman, said up to 25 percent of the laid-off employees could be rehired at nearby stores. The news sent shares of Pep Boys up 96 cents, or 6.6 percent, to close at $15.51 on the New York Stock Exchange. In 2000, Pep Boys closed 38 stores and laid off 1,500. - Associated Press U.S. Steel Corp. reported a net loss for the second quarter and blamed increases in the cost of pensions and natural gas as well as higher spending on planned outages. The nation's largest integrated steelmaker reported a loss of $49 million, or 51 cents per share, in the April-June period compared with profits of $27 million, or 28 cents per share, a year earlier. The results include a one-time charge of $52 million, or 50 cents per share, from the June sale of U.S. Steel's coal mining business and health care benefits for those workers. The loss of 1 cent per share before charges beat the expectations of analysts polled by Thomson First Call, who predicted a loss of 6 cents per share. Revenues were up by more than 30 percent to $2.4 billion, compared with $1.8 billion for the second quarter of 2002. Shares of U.S. Steel were up 71 cents, or 4.5 percent, to $16.29 last month on the New York Stock Exchange. During the second half of the year, U.S. Steel said it will take a $500 million pretax charge as the company cuts jobs. Those charges include severance payments of approximately $115 million, the company said. U.S. Steel announced in May that it was cutting administrative positions by 20 percent as part of a labor agreement with the United Steelworkers of America. The agreement allowed the company to seal a contract with the union and acquire National Steel. Later this month, thousands of union workers are expected to let the company know if they will accept buyout packages that the company says will make it more globally competitive. Job cuts are expected to translate to annual savings of more than $400 million, U.S. Steel said. The company expects to see the first benefits from those cuts by the fourth quarter, with maximum cost reductions arriving by the end of 2004. Wall Street analysts said costs outside the control of U.S. Steel could still buffet earnings, but they were looking for a solid second half. Planned repair outages at the company's Gary Works in Gary, Ind., and at the Slovakian unit, U.S. Steel Kosice diminished second-quarter returns. Those shutdowns cost $38 million, the company reported. Fourth-quarter profits will likely be affected by approximately $35 million in further, planned outages, the company said. Training driven by managers Chief executive officers link worker training to the attainment of corporate goals.And they see managers — not training professionals — as the pilots that drive training programs of corporations. These findings — derived through dozens of interviews with CEOs across the country — are published in a book written by three workforce education and development educators, including a University of Scranton professor. A study released by the American Society for Training and Development estimates that total training expenditures of U.S. businesses equaled 2 to 3 percent of payroll or approximately $95 million in 2000. “One important goal of our study was to get inside the heads of CEOs to find out what they expected of their corporate training departments,” said Bill Wallick, Ph.D., assistant professor and director of the human resources studies program at The University of Scranton, and one of three authors of the book “What CEOs Expect from Corporate Training.” The 277-page hard-cover book, published in February 2003 by the American Management Association, was written by Wallick; Dr.William J. Rothwell, professor of education at Penn State, University Park; and Dr. John (Jed) Lindholm, compensation manager at the University of Massachusetts Medical School and parttime professor at Clark University. The book — based on independent and cooperative studies of the three authors, as well as the most recent study in the field of workplace learning and performance — takes an outcomes-based look at worker training as it relates to the big picture of reaching corporate goals. “There’s far more to corporate training than helping a worker improve upon a specific task,” said Wallick.“Training should be evaluated as it contributes to the overall performance of an organization, not just the individual’s job performance.” “It’s not just what you do, but why you do it,” explained Wallick.“It’s knowing what your role is and whether you’re competent in that role.” For his part,Wallick says the most important finding of the research is that managers, not corporate trainers, are the points of connection between the employees’ roles and company objectives. “Daddy, when I’m finished with my homework, I’ll help you with yours.” Penn College awards $9 million in contracts Construction contracts worth more than $9 million have been awarded to five Pennsylvania firms that will perform extensive renovations at the most historic building on the Pennsylvania College of Technology campus — the Klump Academic Center.Two of the five awards, for more than $2.5 million, were to Williamsport-based companies. The general contractor for the project at the circa-1913 facility will be Robert Feaster Corp. of Northumberland, which submitted a bid of $4.72 million. Other contracts awarded were: HVAC, R & J Ertel Inc. of Williamsport, $1.69 million; plumbing, W.G. Tomko of Finleyville, $1.11 million; electrical, Lecce Electric Inc. of Williamsport, $854,000; and controls, Johnson Controls Inc. of Camp Hill, $632,000. The renovation project is expected to take two years to complete, with the building at least partially occupied throughout. Murray Associates Architects of Harrisburg will serve as the architect for the project, which includes converting former offices — which have been moved to the new Student and Administrative Services Center — to The Klump Academic Center, Pennsylvania College of Technology, Williamsport classrooms and faculty offices. The front entrance, which will get new front steps, masonry and paving, and the first- and second-floor lobbies. The exterior brick-and-stone surfaces will be cleaned, and the grounds will receive new exterior lighting and additional landscaping. The renovated building will comply with Americans with Disabilities Act requirements, and new fire-alarm and firesuppression/sprinkler systems will be installed.The entire structure will be upgraded to meet existing building codes. New plumbing, heating and air-conditioning systems will be installed.The interior will be painted, and new carpeting will be installed. In addition, the International Café will be expanded. The work is being financed by a 30-year, $31.6 million bond issue, which will also finance the construction of Rose Street Apartments, a 365-bed, on-campus student-housing complex; and the renovation of College Avenue Labs (the former HON Industries Inc. manufacturing plant), which will house the Collision Repair, Automated Manufacturing, Civil Engineering and Surveying programs. Holding a job or raising a family can make it difficult to take college classes if you’re looking to change your career or improve on your skills for your current job. At Luzerne County Community College, we recognize that not everyone can go to college full-time. That's why we offer a number of convenient ways to give you the education you need for your career goals. LCCC holds many classes during the evening and weekend to meet your busy schedule. You can receive a degree, diploma, or certification in a number of career programs. Plus, students can take classes on video & internet, so you rarely have to leave your own home to go to college. You don’t have to go broke going to college either. At $70 per credit hour, you’ll recieve a quality education at an affordable price. Fall Schedules are now available! Call now for yours! Or go online at www.luzerne.edu Call now for more information about: Evening and Weekend Classes: 740-0490 TeleCollege Video Programs: 740-0352 1-800-377-LCCC, ext 477 www.luzerne.edu www.luzerne.edu [email protected] NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 21 Poll: economic frailty may result in ‘political mayhem’ Consumer confidence falters By Dennis Jacobe In a session with the House Financial Services Committee, Federal Reserve Chairman Alan Greenspan optimistically stated that the U.S. economy is “at a turning point,” and predicted that low interest rates, increasing stock prices, and the effects of the new tax cut would spur economic growth. Later it was reported that the University of Michigan’s preliminary consumer sentiment index rose in early July from its final June reading. Not surprisingly, many analysts noted that the increase was due to the same factors cited by Greenspan earlier. In sharp contrast, a July 7-9 Gallup Tuesday Briefing Poll* shows just the opposite.The June rise in consumer optimism about the economy did not continue to build in July.The percentage of American consumers rating economic conditions as “good” or “excellent” decreased slightly between June and July, and consumers are slightly more likely to say that economic conditions are getting worse than to say they are getting better. The public gave a similarly tepid response when asked about its expectations for economic growth, interest rates, and inflation over the next six months. Fewer Consumers Expect Increased Economic Growth The percentage of consumers expecting economic growth to increase over the next six months declined from 54 per- cent in June to 49 percent in July, while the percentage of those expecting growth to decrease rose from 20 percent to 22 percent. Thus, the differential between those expecting an increase in economic growth and those expecting a decrease fell from +34 percent in June to +27 percent in July. Consumer expectations for increasing economic growth are now about where they were in April 2003 (+29 differential). Currently, consumer expectations are much better than they were in January 2003 (+16 differential) and October 2001 (+5 differential), but well below where they were in March 2002 (+43 differential). Still, Consumers’ Interest Rate Expectations Are About the Same… The percentage of consumers expecting the interest rates to increase over the next six months declined from 43 percent in June to 41 percent in July.At the same time, the percentage of consumers expecting rates to go down also declined from 20 percent in June to 17 percent in July. So the differential between those expecting rates to go up and those expecting them to go down was virtually unchanged — +23 in June and +24 in July. Right now, substantially fewer consumers expect interest rates to increase in the months ahead than was the case in April 2002, when 59 percent expected rates to increase and the differential was +45. On the other hand, far fewer Americans expect rates to decline now than in October 2001, when 25 percent expected rates to increase and the differential was -19. . . . As Are Consumer Inflation Expectations According to the July Gallup Tuesday Briefing poll, 48 percent of consumers expect inflation to accelerate in the next six months.This percentage is the same as it was in June, although the inflation expectations differential increased from +32 in June to +35 in July.At present, consumer inflation expectations are not as great as they were a year ago when the differential was +45, but the differential is above its October 2001 level of +27. Consumer Growth Expectations Are Extremely Fragile The failure of consumer expectations to gain additional positive momentum in July is troubling.As the Fed and the analyst community have argued, fiscal and monetary policies are now highly stimulative. Investors showed great enthusiasm in June — maybe even a little too much — and virtually every economic forecaster expects economic growth to improve in the months ahead. Still, contrary to what some observers see in the University of Michigan’s preliminary report, Gallup Tuesday Briefing’s data does not support the idea that consumers or business decision-makers are convinced, at least at this point. In essence, recent economic crosscurrents have made today’s consumer expectations extremely fragile.The hope is that we are experiencing a lag between the implementation and the positive impact on consumer perceptions of the recent A Clear View to the Future. When we first opened our doors back in 1930, our business revolved around replacing glass in automobiles. Today, our family owned business has grown to become the area’s premier full service glass company. We have supplied the doors, windows and hardware for some of Eastern Pennsylvania’s most recognizable buildings. Whether it’s universities, retail stores, or family restaurants, when area businesses want to expand, remodel, or just replace, they look to Mesko Glass. What has not changed is that we take care of your needs, no matter the size of your business. • Store Fronts • Plate Glass Replacements • Solariums, Vestibules & Patio Rooms • Mirror Design & Installation • 24-Hour Emergency Service • Glazing Contractors • Smoking Enclosures • Window Retrofit Packages • Builders Hardware Services • Design & Build Capabilities • Aluminum & Steel Doors & Frames Over 70 years of quality, service and selection Call us today! 1-800-982-4055 22 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 economic stimuli.Tax-cut checks and withholding changes don’t even begin to take place until late this month, and lower interest rates can take four to six months to have an impact. With any luck, consumer optimism — and even business optimism — will build in the months ahead and we’ll see a surge in consumer/business optimism and a much stronger economy later this year and into 2004. If not, today’s economic fragility may well translate into political mayhem as both major parties recognize that next year’s elections could be very difficult for many of today’s officeholders. *Results are based on telephone interviews with 1,006 national adults, aged 18 and older, conducted July 7- 9, 2003.For results based on these total samples, one can say with 95 percent confidence that the margin of sampling error is ±3 percent. Middle market firms, citing improving economy, vow to invest in technology From competition within the middle market to vying with larger competitors and new companies entering the market, middle-market business leaders are feeling the pinch of a heightened competitive environment, according to findings from the Grant Thornton Survey of Middle-Market Business Leaders. Ninety-four percent cite competition as more intense or as intense as one year ago, while just 6 percent say the competitive environment is less intense. “As the market has tightened, so, too, have the competitive pressures on middle-market companies,” says John Desmond, partner in charge of the Business Leaders Council.“Companies, especially those in the middle-market, are not only fighting for new business — often at lower margins — but many are also looking for new ways to keep existing customers from taking their business to the competition.” Additional survey highlights: Survey respondents cited a greater focus on price (89 percent), more knowledgeable customers (82 percent), and less client loyalty (81 percent) as the top business issues related to competition. Two-thirds (74 percent) of middle-market business leaders believe it is more important today for employees to understand what needs to be done for the company to succeed. To enhance employee alignment and motivation, 82 percent are focusing on consistent communications, and 81 percent are establishing realistic expectations for employee performance. Fifty-two percent of respondents are taking immediate steps to better allocate resources by deselection — focusing exclusively on initiatives that will be most profitable. In preparation for an improved business climate, 84 percent of middle-market business leaders have — or plan to — invest in new technology (58 percent and 26 percent, respectively). The Summer 2003 Survey of MiddleMarket Business Leaders, with a special emphasis on how companies are positioning for an improved economy, is now available.To order a printed or .pdf version of the report, visit Grant Thornton’s Web site at www.grantthornton.com/blcsurvey. Congress seeks way to pay for Medicare overhaul By Robert Curran Following a federal budget surplus and then a record-breaking tax cut, companies, employees and retirees assumed the nation’s economy was on its way up. But in the last few years all of that has changed and the country now faces a projected $455 billion deficit this fiscal year, the government’s largest ever. The deficit is $150 billion higher than the initial estimate from the Bush administration, and companies are concerned about its impact on growth, jobs and taxes, and where the government will find the money to pay for the upsurge. Another big concern is the prescription drug program for seniors that the legislative and executive branches are working on,and President Bush’s plan to spend $400 billion to restructure Medicare with an emphasis on enrollment in private sector health organizations. The prescription drug proposal has become very complex, with proposals from both the House and Senate, and some members of Congress have termed it “bewildering.” Conferees are trying to work out compromises. Democrats are asking for more money and want the program run by the government, while Republicans are pushing to trim costs and want private sector involvement in the plan. Many economists have criticized the prescription drug overhaul, saying that only about 50 percent of seniors would actually realize any savings because of monthly premiums,out-of-pocket costs and high deductibles. Costs for many seniors, depending on their plans, could be in the $300 a month range.The conclusion is that many people may pay less by not enrolling and hope they’ll never need catastrophic coverage. Add the cost of a 44 percent increase in military spending and $1 billion a week for the occupation of Iraq, and questions are being raised as to where all of this money is going to come from. In regard to the pending Medicare prescription drug legislation, Dave Echevarria, assistant professor of business administration at Penn State’s Worthington Scranton Campus, had this to say about about the proposals: “The government is saying ‘it’s expensive and we’re trying to figure out ways so we don’t bankrupt the federal government.’” And who would pay for the surging costs for the big tax cut, the deficit and prescription reform? “The government will borrow from the public,” Echevarria said.“When the government borrows,it traditionally borrows from the insurance companies and retirement funds and private individuals who put money in short term treasuries. It’s coming from the marketplace.” As to what happened to the huge surplus, Echevarria said,“I’m not sure there really was a surplus.” He said that ever since the administration of Lyndon B. Johnson, the government decided to include Social Security revenues in with general tax revenues. The reasoning, he said, was to advance the Vietnam War and the Great Society programs, and that was why the government included the Social Security funds as part of its general revenue. “I’m not sure there was a surplus on the basis of taxes,”Echevarria said.“It was due largely to money that went into the Social Security fund.” Unchecked deficits could force interest rates up, but Echevarria said if there was no federal debt, interest rates would plummet. He added that if debts continue to rise too much, this would impede the federal government’s ability to fund programs. Echevarria sees the cost of the war in Iraq as a marginal increase in expenses as opposed to having forces stationed in the United States, and said the cost differences may not be much. There are economists who worry about deficits and economists who believe deficits are part of doing business. Echevarria agrees with the latter, up to a point, that point being when servicing the deficit requires higher taxes. With divergent points of view coming from the House and Senate and within the private sector, news of the economy tumbles regularly. One week the economic forecast is poor and lists higher unemployment, and the next week signs of a recovery are announced. The uncertainty itself has stunted consumer spending, and all sides keep looking for stability and better days to come. Junior Achievement opens Peckville office Junior Achievement of Northeastern Pennsylvania Inc. (JA) recently celebrated the opening of its new office at 533 Main Street, Peckville. JA’s business and economics programs are for students in kindergarten through grade 12. JA enables caring adults to share their experience with students to show them what it takes to be successful. Visit JA’s Web site, nepa.ja.org, or call (570) 489-9474 for more information. Celebrating the Peckville office opening were, left to right: Sarah M. Kubrick, JA development assistant; Lisa M. Buranich, JA development director; Donna Sedor, Greater Wilkes-Barre Chamber of Business and Industry; Michael J. Pacyna, PNC Bank; Paul Barretta, Talent Clearinghouse, JA classroom volunteer; Ann Marie Andrejko, PNC Bank, JA board of directors; Gerald J. Ganz, Jr., Johnson College, JA board of directors; Kenneth G. Okrepkie, CDE Computer Learning Center, JA board of directors; Ellen P. Smith, JA board of directors; Janine M. Becker, Sallie Mae, JA board chair; Ronald J. Yevitz, Penn State Worthington Scranton, JA board of directors; Anna Cervenak, Verizon, JA board of directors; Chuck Matthews; Kathleen M. Matthews, JA president; Peter J. Danchak, PNC Bank president, JA advisory board; Brian Rinker, Blue Cross of NEPA, JA board of directors; Al Brogna, Sen. Robert Mellow’s office; Gary T. Crisci, Merrill Lynch, JA board of directors; Mary Gene Eagen, JA vice president, education; Robert N. Lettieri, MacIntyre Associates Inc.; Orna S. Clum, JA program director. Synthes Spine Co. Pennsylvania Regional Tissue Bank B UILD WITH Aventis Pasteur Metzgar Building C ONFIDENCE. B UILD Kane Properties New Distribution Center Pocono Mountain Regional Police Department WITH C OSTANZO . Marywood University New Student Residence Make the right choice for your next construction project. L.R. Costanzo always utilizes value engineering, cost control, critical path scheduling and flexible work schedules so projects are completed on time and within budget. Companies throughout the area know that when they build with L.R. Costanzo, they build with confidence. View Our Selection of Completed Projects @ www.lrcostanzo.com 123 North Main Avenue, Scranton, PA 18504 570-346-8751 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 23 Focus on oncology care: COOK’s By Beth W. Orenstein Medical Care Company Medical Equipment & Supplies Large Retail Showroom • Homecare Services Professional Supplies 283-5238 • 1-888-283-4321 R. 785 Wyoming Ave., Kingston, PA 18704 We Care. book of lists 2003 This Year’s edition marks the ninth installment of the region’s most sought-after and extensive source of business news and market information. Additional copies can be purchased for $1395, or subscribe to the Northeast Pennsylvania Business Journal ($28 for 12 issues) and receive the Book of Lists FREE. Call the 570-207-9001 or 877-584-3561 extension 5420. Corporate rate discounts available for volume orders. 24 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 An estimated two million people will be diagnosed with cancer this year, according to the National Institutes of Health (NIH). But thanks to advances in screenings and treatments, the news won’t be as devastating or life-threatening as it once was, especially for those diagnosed with breast and other solid cancers. Here’s a look at some of the advances in cancer care that are available from hospitals and imaging facilities that serve northeast Pennsylvania: Sentinel node biopsy Women with breast cancer have a new, less invasive option for detecting its spread.The procedure, called sentinel node biopsy, enables doctors to check for cancer while sparing unaffected lymph nodes. Not having to remove unaffected lymph nodes is significant, says Lee B. Riley, M.D., Ph.D., director of the cancer center at St. Luke’s Hospital and Health Network based in Fountain Hill, because, for many women, removing nodes in the armpit area disrupts the natural movement of lymph in the body. Lymph, which contains lymphocytes, a type of white blood cell, plays an important part in the immune system. Disruption of lymph can cause a disorder known as lymphedema, which causes swelling, limited movement and discomfort and increased risk of infection. During sentinel node biopsy, Riley says, a harmless dye is injected around the breast tumor.The dye is absorbed into the lymphatic system, highlighting the pathways through which tumor cells travel before lodging themselves in the sentinel lymph nodes. During the biopsy, two to four sentinel nodes are removed and examined to see if they have been affected by cancer. Studies have shown that if cancer has not affected those nodes,“there is a 95 percent-plus chance it has not spread to any other nodes, so further removal of lymph nodes is unnecessary,” Riley says. Compared to traditional biopsy, a sentinel node biopsy is a less invasive procedure, meaning a quicker recovery and less post-op pain, Riley says.And because unaffected lymph nodes are left intact, the risks of lymphedema and nerve damage are greatly decreased. Riley says sentinel node biopsies also are useful in treating other cancers such as skin and colon. Intensity Modulated Radiation Therapy (IMRT) Radiation therapy utilizes high-energy X-ray beams for the treatment of cancer. IMRT uses a computer to generate images to plan and deliver more tightly focused radiation beams to tumors than is possible with conventional radiotherapy, says Norman Schulman, M.D., medical director of Radiation Medicine Specialists of Northeast Pennsylvania, Forty Fort. State-of-the-art linear accelerators are fitted with an accessory called a multi-leaf collimator, which uses up to 120 computer-controlled mechanical “fingers” to St. Luke’s Cancer Center has more radiation therapy options for cancer treatment than any other area hospital • Intensity Modulated Radiation Therapy (IMRT) with more than 392 patients treated since 2000 • Electronic Compensation • 3D Conformal Therapy • Brachytherapy – Prostate seeds – Mammosite – High-dose radiation • CT Simulation • Two state-of-the-art linear accelerators with multileaf collimation Ask your doctor or call us for more information at 610-954-4300 or 1-866-STLUKES (toll free). St. Luke’s Hospital & Health Network is a member of the University of Pennsylvania Cancer Network The Region’s Leader in Cancer Care 801 Ostrum Street • Bethlehem • 1-866-STLUKES (785-8537) www.stlukescancercenter.org Technology, biological care top list of advancements shape the beam of radiation so that it conforms to the three-dimensional shape of the tumor as defined by the IMRT plan. The technology allows doctors to deliver higher dose radiation to the tumor while sparing surrounding healthy tissue, Schulman says. IMRT is used for prostate and head and neck cancers and recurrent or primary tumors near a spinal cord or other sensitive structures, Schulman says. IMRT is under investigation for the treatment of breast cancer. scans are used for diagnosis, monitoring tumor response to chemotherapy or radiation and in radiation treatment planning. P.E.T. differs from X-rays and other diagnostic imaging techniques because in addition to Biological therapies Riley says advances in drug treatments for cancer that have come about as Gamma knife The Gamma Knife is a precise and powerful tool for treating certain tumors and vascular malformations in the brain. It is not a knife, but an instrument that uses 201 cobalt sources to deliver finely focused beams of radiation, Schulman says. The beam from each individual source is delivered through holes in a helmet-like device.All the beams cross a single point, and it is only at that point that enough radiation is delivered to the affected tissue. Like IMRT, its advantage is its extreme accuracy, Schulman says. P.E.T. scans Positron emission topography (P.E.T.) and detects the tracer in the tissue. “A CAT scan generally can see down to 1 centimeter, whereas a P.E.T. scan can go down to almost 6/10ths of a centimeter,” Schulman says. Riley says P.E.T. scans have proven so useful in seeing whether cancer has spread that more insurance companies are reimbursing for them.“It’s become a very useful test not only to try to help people find out if they have cancer but also if the treatment for cancer is working,” he says. showing a patient’s anatomy, the test also looks at biological and physiological changes in the body, Schulman says. Patients receive a dose of a tracer-containing substance that accumulates in diseased tissue, Riley says.The patient then lies on an electrically powered table that moves through the scanner.The scanner creates a picture of the patient’s body researchers learn more about human genes also have been impressive. For example, the Biological Therapy Program at St. Luke’s offers advanced cancer-fighting treatments in the form of molecular materials made by the body’s immune system, such as antibodies and growth factors. Examples of leading-edge immunotherapy being used at the Cancer Center are: High-Dose Interleukin-2 (IL-2), a promising treatment for melanoma and renal cell cancer, and the CancerVax vaccine for melanoma. Cancer risks Programs are developing to help people reduce their risk of cancer even before it occurs. One such program is the Cancer Risk Program provided by the Northeast Regional Cancer Institute in Scranton. In addition to education, the program offers an in-depth risk assessment and one-on-one counseling program.“By doing that, people gain a more accurate idea of their and their family’s risk for cancer,” says Laura Toole, an oncology social worker who is director of the program. Knowing risk, people can make lifestyle changes and schedule more aggressive screenings for cancers they may be more likely to inherit,Toole says. In cases where family history and genetic testing confirms a predisposition for some cancers, people might also pursue clinical trials for preventive medicines and possibly prophylactic surgeries to prevent breast, ovarian or colon cancer. CANCER CARE with Expertise, Knowledge and Commitment to Technology ... is our MISSION CANCER CARE WITH EXCELLENCE ... Our cancer facility specializes in state-of-the-art radiation treatments and provides radiation treatments with high and low energies using photons and electrons. The cancer facility is the first in the region to use the NOMOS technology with Intensity Modulated Radiation Therapy (I.M.R.T.) and the BAT ultrasound system for daily localization for prostate cancer assuring more accurate localization of prostate cancer with reduced dose to normal structures such as bladder and rectum. YEARS OF EXPERIENCE ... Dr. Norman Schulman, medical director, has over 30 years of experience in treating cancer patients. Dr. Schulman states “the cancer facility prides itself in providing the latest technology in the region with radiation treatment planning using three dimensional conformal and IMRT planning techniques.” The facility has played a leadership role in the region with advancement in radiation treatments introducing coregistration of CAT, PET and MRI imaging for localizing tumor targets for diagnosis and treatment of cancer. Dr. Schulman works closely with the physicians involved in the patient’s care, such as the family doctor, medical oncologist and surgeons. WELL TRAINED STAFF ... From the first visit and throughout the care of the patient at the cancer facility, the staff is courteous and polite providing an atmosphere of family. The cancer facility is staffed by four certified therapists, two certified radiology technologists, a dosimetrist and other staff members. CONVENIENT ... Dr. Normal Schulman F.A.C.R.O, Fellow, American College of Radiation Oncology Board Certified Radiation Oncology 190 Welles St. Forty Fort, PA (570) 714-8686 The cancer facility is a privately owned clinic and we’re located in the Cross Valley West Professional Building at 190 Welles Street in Forty Fort, Pennsylvania. Plenty of free and easy parking. CANCER MASSAGE THERAPY ... The cancer facility provides complimentary massages to our patients during the course of radiation treatment by Caroline Howell, a certified oncology massage specialist. Massage can reduce stress, provide relaxation and comfort, relieve pain, minimize the side effects of radiation and chemotherapy, enhance circulation and oxygenation and fatigue. Call for a consultation at 570-714-8686 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 25 Congress mulls Health Savings Account (HSA) options By Bernard J Healey, Ph.D. A recent study, published in the journal, Health Affairs, has concluded that healthcare spending is greater than the services Americans receive for the money they spend. In response to this healthcare cost escalation, the United States Congress is attempting to pass new legislation allowing Americans to establish Health Savings Accounts (HSA) or Health Savings Security Accounts (HSSA). Legislation added to the recently passed House Medicare reform bill would allow more companies to offer these accounts. According to Otto F.Wolke, R.Ph, president, Schellen and Partners USA Inc., healthcare consultants,“Medical Savings Accounts were part of the HIPAA legislation of 1996 and new proposals, called Health Savings Accounts and Health Savings Security Accounts are being considered in Congress at this time.While being touted as vehicles for consumerdirected healthcare, only about 100,000 accounts have been started under the HIPAA legislation that had authorized up to 750,000 accounts. “For employers and for healthy families that have the money to put into the accounts, there are advantages. Money can be saved and rolled over. In the inverted bell-shaped curve of healthcare utilization, these accounts are targeted for population with much less medical risk.” Wolke argues that “the insurance companies win with minimal utilization of services and lower administrative costs of handling small claims.The employers win with a large reduction in healthcare premiums paid.The healthy employee wins with the freedom of choice in who to see and what to spend the healthcare dollars on, or to keep the money growing in the MSA account. Financial services companies also win with more private money going into investments with subsequent administrative fees.” Wolke contends that “the losers are moderate to low-income individuals who find it difficult to fund the accounts or to pay bills prior to having fully funded the MSA.Young and growing families who would face large out-of-pocket expenses with unexpected emergencies or a pregnancy. Other losers are enrollees with chronic diseases that require expensive medication, since these plans have no drug benefit, and drugs are the fastest growing segment of healthcare inflation. Persons who experience frequent hospitalizations or physician office visits are also at risk for significant out-of-pocket expenses that will wipe out the savings account and leave the patient at risk for costs.” He explained that “there is often no maximum out-of-pocket expense, which is part of most current healthcare insurance programs.The MSA process takes funds from the healthcare delivery system and creates additional savings pools for wealthier individuals who can afford to pay incidental healthcare out of pocket and keep the MSA account for retirement.” James Davis, government affairs repre- sentative, Blue Cross of Northeastern Pennsylvania, says “these new proposals improve current medical accounts by removing many of the barriers that limited their use and effectiveness.” He said current proposals allow employees to build assets in Health Savings Accounts through employer contributions, employee contributions and taxfree rollovers of a portion of unused flexible spending account balances.” Davis went on to say “ insurers such as Blue Cross of Northeastern Pennsylvania hope that Congress would go even further in giving employers and health plans the flexibility to develop the widest possible range of products, for instance by eliminating the requirements that HSSAs and HSAs must be coupled with plans that have specific deductible amounts.” He also stated that “the HSSA accounts were scored by the Joint Committee on Taxation as costing much more than HSAs (roughly $160 billion versus $7 billion over 10 years), Blue Cross hopes Congress will consider both products’ potential for advancing consumer-directed care.With consumers’ healthcare costs rising, it is more important than ever to work toward supporting marketplace innovations that will lead to greater flexibility and more choices for consumers. This legislation is an important step toward increasing consumer choices and access to healthcare. It will allow health plans to develop new coverage options designed to empower consumers and expand their health coverage.” Area firm helps to beautify Arlington National Cemetery Michael Kravitsky, IV, co-owner; Shawn Kravitsky, co-owner; and Victor Gorski, sales manager, of Grasshopper Lawns Inc. of Larksville, traveled to Washington, D.C., this summer to team up with lawn and landscape experts from around the nation in a day of voluntary service beautifying and restoring the cemetery grounds at Arlington National Cemetery. The beautification activities were part of the Professional Lawn Care Association of America’s (PLCAA) 14th annual legislative day on the Hill in July. Grasshopper Lawns, in business since 1964, has been a PLCAA member since 1980. For more information, call (800) 287-6113. At left, Grasshopper works at Arlington National Cemetery. Extraordinary cancer care. WILKES-BARRE GENERAL HOSPITAL has always strived to provide its cancer patients with the best medical professionals, the latest technologies and the most advanced therapies. Today, those efforts have evolved into the region’s most comprehensive cancer care program. In addition to our leading edge technology in medical oncology and radiation therapy, we offer a dedicated 39-bed inpatient unit with skilled and compassionate physicians, nurses and support staff. It all adds up to expert, experienced cancer care. WILKES-BARRE GENERAL HOSPITAL – 26 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Fighting Cancer... with Capability, Commitment and Compassion. www.wvhcs.org ‘CreateAthon’ donates talents to nonprofits Six nonprofit organizations from Luzerne and Lackawanna counties will be the beneficiaries of advertising and marketing services provided by CDS Creative in its second annual CreateAThon on September 11.The event, a 24-hour work-around-theclock effort, will provide free creative services to the selected nonprofits. Organizations selected as CreateAThon clients this year include: Girl Scouts of Penn's Woods Council; Greater Hazleton Senior Citizens Services Inc.; Lupus Foundation of Pennsylvania-Pocono/NE Branch; S.A.F.E (Supporting Autism & Families Everywhere); Susquehanna Warrior Trail Council;Wyoming Valley AIDS Council. CDS Creative received 23 applications from non-profit agencies all across Luzerne and Lackawanna counties. The agency expects to produce between 15 and 20 projects for the six nonprofits selected. Catherine D. Shafer, president, CDS Creative, said,“We wish we could help everyone who needs it. Every organization that submitted an application deserves support; they are all doing such important work in our community.” In selecting the organizations, Shafer noted that the agency followed its criteria of choosing nonprofits that provide direct services to the people of Luzerne and Lackawanna counties. In addition to the staff of CDS Creative working during the 24-hour creative blitz, the agency has partnered with Marcato Advertising and Stage2 Marketing & Design to provide graphic design services to the event’s participants. “We work with these artists on a daily basis and we appreciate them partnering with us on such a worthwhile and fun cause,” Shafer explained. CreateAThon is the brainchild of Rigg’s Inc., an advertising, marketing and communications firm in Columbia, S.C. In an effort to give nonprofit organizations the professional, creative marketing materials that would otherwise be financially unfeasible, Rigg’s formed the first CreateAThon in 1998. CDS Creative provides a broad spectrum of creative advertising, marketing and public relations solutions to clients throughout the northeast. Activities slated by the Northeast Regional Cancer Institute Colorectal Cancer: Update on Epidemiology, Screening, and Local Trends in Northeast Pa. September 10, 6 p.m. A professional education program offered for the members of the Luzerne County Medical Society. This program will focus on colorectal cancer and the epidemiology of this disease in northeastern Pennsylvania. Location to be determined. Cancer: Families at Risk September 22, 2 p.m. Education program designed to answer your questions and concerns about cancer risk. Held at Boscov's Auditorium, Mall at Steamtown, Scranton. Colorectal Cancer September 26, 6 p.m. Program focusing on an overview of colorectal cancer, including the signs and symptoms. Screening methods and prevention will also be discussed. Held at Boscov's Auditorium, Steamtown Mall, Scranton. Cancer Survival September 29, 2 p.m. Program that helps individuals develop practical tools in daily life as they deal with cancer diagnosis and treatment. Held at Boscov's Auditorium, Mall at Steamtown, Scranton. For more information about any of the above programs,call (800) 424-6724. Valley Open MRI receives ACR accreditation Dr. Juan D. Gaia, president,Valley Open MRI & Diagnostic Center in Kingston announced that his facility has been awarded a three-year term of accreditation in high-field and low-field MRI as the result of a recent survey by the American College of Radiology. The survey was performed by the ACR based on clinical submission of images by Georgann Wywoda, BSRT(R)(MR).The ACR, headquartered in Reston,Va., awards accreditation to facilities for the achievement of high practice standards after a peer-review evaluation of its practice. Evaluations are conducted by board-certified physicians and medical physicists who are experts in the field. They assess the qualifications of the personnel and the adequacy of facility equipment. The surveyors report their finding to the ACR’s Committee on Accreditation, which subsequently provides the practice with a comprehensive report.The ACR is a national organization serving more than 32,000 diagnostic/ interventional radiologists, radiation oncologists and medical physicists with programs for focusing on the practice of medical imaging and radiation oncology and the delivery of comprehensive health care services.At right are Dr. Juan D. Gaia and Georgann Wywoda. R EBECCA D ECKER , S CRANTON “I have wonderful friends, a passion for life, and breast cancer.” As a social worker and Komen Foundation volunteer, I’ve heard some scary stories about health care costs. So when I found out I had breast cancer, I was concerned with what I might face, both physically and financially. ■ It’s been a long road of surgeries, chemotherapy, radiation, and procedures. But everyone at Blue Cross of Northeastern Pennsylvania and Highmark Blue Shield made sure I had access to the best doctors around, both at home and away. And total peace of mind when it came to medical bills. ■ Blue Cross and Blue Shield took care of everything. All I had to do was get well. “But I also have Blue Cross and Blue Shield.” Excellence in Action Independent Licensees of the Blue Cross and Blue Shield Association. ®Registered Mark of the Blue Cross and Blue Shield Association NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 27 Montoursville youth launch aviation magazine By John Beauge Adam and Bryan Makos were in middle school in Montoursville when in 1994 they launched Ghost Wings, a two-page newsletter they produced for family and friends on their home computer to share aviation stories inspired by their grandfather’s World War II accounts. In May 1999, the brothers, along with their younger sister Erica, and friend Joseph Gohrs, moved from a newsletter to a magazine format. Today, Ghost Wings has a paid mail circulation of about 3,000. More than 7,000 other copies of the magazine, published four times a year, are sold through selected newsstands and by staff members at air shows. The four still work from an office in the basement of the Makos home near Warrensville, where they self-taught themselves how to create and design a magazine that is printed commercially. Editor Adam Makos, 22, who graduated in May magna cum laude from Lycoming College, plans to devote his full-time efforts to the magazine.The other three will continue to split their time between school and the magazine. Associate editor, Bryan Makos, 19, is a sophomore at Lycoming and Gohrs, 22, the production manager, is a senior at the Pennsylvania College of Technology. Erica Makos, 18, who handles public relations duties, graduated in June from Montoursville High School. Their work has won accolades from veterans including Richard Winters, a World War II paratrooper from Hershey who was among those featured in the HBO miniseries “Band of Brothers.” Winters, 85, is featured in an article in the current issue reliving his account of jumping into Normandy on D-Day.“We were focusing on these guys before we saw them on TV,”Adam Makos says.“It didn’t take an HBO series to show us they were real American heroes.” He had interviewed the late Stephen Ambrose, author of the book “Band of Brothers,” in October 2000 when he came to an air event Ghost Wings hosted at the Williamsport Regional Airport. Makos’ article, illustrated with World War II photographs, goes beyond the HBO series to include first-person accounts of those who flew the paratroopers to the jump zone on June 6, 1944. “They did a beautiful job,”Winters says. Makos interviewed Winters who started making notes of his D-Day experience three days after he landed in Normandy. He had time because he had suffered a left leg wound. Winters, who retired as a major after training troops to go to Korea, is to be featured in a commemorative art print by artist John Shaw in Florida.The Ghost Wings staff plans to sell the prints as a fundraiser for the magazine. They do much of their research for articles about World War II during the summer by attending air shows throughout the United States. Adam Makos was at Edwards Air Force Base in California in October when Chuck Yeager made his last flight in a jet, a F-15 Eagle. He had met Yeager at an air show in Oshkosh, Wis., and learned he did not have a Web site. The Ghost Wings staff built one for him, which was launched Feb. 13 on Yeager’s 80th birthday. The young writers have learned to take advantage of situations to get their stories and expand their experiences. In July 2002 at a fly-in/air show in Oshkosh, Erica Makos got to go up in a World War II vintage P-51 fighter. She describes her experience in the current edition.Their work on the magazine has brought them recognition in high school and college. Adam Makos this year won the Global Student Entrepreneur award for the Ohio Valley region, which is composed of Pennsylvania, Ohio, Indiana and West Virginia. He will represent the region in the national competition held in November in Chicago. For the third consecutive year, Erica Makos is in the running for a national Future Business Leaders of America award. Bryan Makos went to nationals three times when he was a Montoursville student. The Makos brothers and Gohrs won a state award for the magazine’s business plan when Adam Makos was still in high school. Many of the letters the staff receives include the comment that not many youngsters today are writing about the experiences of World War II veterans. Time for getting first-person accounts of these events is running out, Adam Makos says.“We have to act fast to get them into the hands of young people who can learn so much from them,” he says.“We have to do this before such valuable history is lost.” Yahoo! launches tools to create ‘business class’ Web sites Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, announced the launch of Yahoo! SiteBuilder, an innovative design tool enabling small businesses to build professional, business-class Web sites quickly and easily. The new tool is available now on Yahoo! Web Hosting (webhosting. yahoo.com), and is free for Yahoo! Web Hosting customers. Yahoo! Small Business created and developed Yahoo! SiteBuilder, a Javabased client-side Web site design tool with business-class authoring, management and customization, to make it easier than ever for small businesses to establish an online presence.With Yahoo! SiteBuilder, no programming knowledge is required.The easy-to-use tool enables small businesses to use drag-and-drop editing to build professional and sophisticated Web sites. Yahoo! is offering the new tool for free. Yahoo! Web Hosting customers can publish their Web site directly to their Yahoo! Web Hosting account. New users can publish their Web site by signing up for any of the three affordable Yahoo! Web Hosting packages. Yahoo! SiteBuilder provides more than 200 templates such as professional services, interior design, real estate and travel, among many others. It enables users to drag and drop images anywhere on the site, insert backgrounds, layer designs, edit, preview and “undo” mistakes.Also,Yahoo! SiteBuilder provides a Getting Started Guide that walks customers through a step-by-step process, from creating a page to publishing a site. Yahoo! SiteBuilder allows for offline management, providing small businesses the freedom to modify their site without being connected to the Internet. In addition,Yahoo! SiteBuilder uses open standards and is designed to create multipage sites versus individual pages, allowing for link management. Integrity Building Systems locates corporate headquarters in Milton In May, the Milton Area Industrial Development Association, the owners of Integrity Building Systems Inc., and other noted dignitaries, joined together in a groundbreaking ceremony at a site in the Milton Industrial Park, Belford Addition. The 22.5 acre site is part of a Keystone Opportunity Zone, and will become the new corporate headquarters for Integrity Building Systems, a leading manufacturer of modular homes, presently located in Montgomery. Construction on the site 28 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 commenced last month, with anticipated occupancy of the new 70,000 sq. ft. stateof-the-art manufacturing facility, and 7,000 sq. ft. office complex by March, 2004. Integrity Building Systems presently employees 100 workers at its operation in Montgomery and, with the relocation of operations to the Milton site, anticipates the creation of approximately 40 additional jobs within the next few years as predicated by housing demands in the Northeast. Homes by Integrity, the retail marketing division of the parent company, will also maintain offices at the new location — allowing potential local homebuyers the opportunity to view firsthand the benefits of modular construction. Participating in the groundbreaking ceremony were, left to right, Integrity Building Systems officers, Richard Rowe, president; Michael Steimling, vice president of material procurement; Glenn Salsman, controller; Steven Weaver, treasurer; Mark Bowman, vice president of Mid-Atlantic sales; Martin Sickle, vice president of Northeast sales;Timothy McWilliams, vice president of production; Sam Deitrick, Northumberland County commissioner; John Boback, Northumberland County commissioner; Bob Hickox, president and CEO of the Milton Area Chamber of Commerce; and Edward Nelson, mayor of Milton. Use exit interviews to gather feedback for company Information obtained in exit interviews assists in running efficient HR departments as well as retaining employees By Jennifer Butler During this latest recession, companies are finding that exit interviews are becoming increasingly more valuable in retaining current employees and pointing the way toward new hires. According to a recent study by the Society of Human Resource Management, more than 90 percent of companies conduct exit interviews and it is one of the most widely used methods of gathering employment feedback for a company. “Exit interviews can provide a wealth of information for both the employee and the company, said Donna Hewlett Bator, human resources manager at Marywood University. “The company welcomes the opportunity to find out what can be done to prevent future turnover and the employee is given an opportunity to talk about what they have experienced while employed with the company.” Other information can be obtained by the employee as well.This includes information on the continuation of any benefits, how to handle their pension plan, what will be included in their final check and any other pressing matters for the final transition, Bator adds.“It is needed to tie up loose ends like collecting IDs, getting correct addresses for mailing W2s and other things, ” she said. For the most part, exit interviews are conducted a few days before or after an employee leaves the company, when the employment experiences are “fresh” in his/her mind and he/she is happy to express final thoughts about the employment.All part-time and full-time personnel are interviewed, according to Bator, and temporary or seasonal employees are also encouraged to contact her before their departure. “I prefer to meet with individuals one-on-one. This makes it more personalized and helps create an atmosphere where they feel free to discuss what is on their minds,” explained Bator. If this is not possible, she mails the information with a follow-up phone call, with all information kept confidential unless otherwise specified. Bator includes such questions as why the employee is leaving and whether anything could have prevented it. “I inquire as to how they perceived their salary, job security, benefits, managerial skills and opportunities for growth,” she said. She asks if they would work for the university again if the occasion arose and whether they felt the workplace was a safe environment. “This is a perfect opportunity to obtain constructive feedback.We can identify problems as well as things that work well in the department and the university, since employees often acknowledge Donna Hewlett Bator, human resources manager at Marywood University, right, conducts an exit interview, a situation she describes as “the perfect opportunity to obtain constructive feedback.” Photo by Bob Urban what worked well and have suggestions on what might work better,” she said. Bator takes the information she receives and combines it with other data to determine relevance and whether changes are due. “The more frequently a comment is made, the more significance it has,” she notes.“Possible underlying motives, differences in perceptions of a situation and the sincerity of the terminating employee at the exit interview serve as positive, objective tools to (use to) make appropriate changes,” she said. “I enjoy the opportunity to meet with employees as they are first coming to Marywood and those that are leaving. It serves as a source of connection for human resources and the employee. It is an opportunity to make sure the employees know we are concerned about their experience here and are here to be of service and maintain a positive relationship when they are no longer employed at the university,” added Bator. There are a variety of reasons that retention of an employee is so important. The cost of turnover to a company can add hundreds of thousands of dollars to a company’s expenses, including hiring and training costs and productivity loss. Experts say that 25 percent of the average employee’s salary is a conservative estimate of the cost of turnover. The loss of company knowledge when an employee leaves can be harmful because employees may take what they know about the company, customers, current projects and past history away — sometimes to a competitor. There is a disruption of customer service when an employee leaves. Relationships develop between customers and employees that encourage business.These relationships are severed when an employee leaves. In addition, low morale, related to the loss of an employee can be felt throughout a company, and may intensify when coworkers are required to take on additional responsibilities. Interviews can also be conducted on paper or through the use of an online system like Nobscot’s Webexit Exit Management System, depending on the company’s preference. One disadvantage of in-person interviews is that, for larger companies, they may be too time-consuming, it may be difficult to track information verbally and some employees may be afraid to share negative information during these interviews. Telephone exit interviews can also be time-consuming and expensive if performed by an outside consultant. Paper and pencil interviews take less time and employees may be more willing to share negative information, but return of such interviews by the employee average only 30 to 35 percent. The online management system may be useful in saving time for human resource managers.The information is compiled automatically, and participation rates have doubled, according to Nobscot. Had Any Problems With Your Commercial Insurance Program Lately? 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Hutchison Insurance Agency 445 Market Street Bloomsburg, PA 17815 1-800-222-2040 • 570-784-5550 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 29 Horses, slots create ‘racinos’ ‘Racinos’ could provide ‘destination entertainment’ venues at existing race tracks, benefit ancillary businesses Continued from page one a race track, which ultimately reduced the daily income at the track and made it more difficult to run a racing operation. Smaller and smaller crowds eventually took their toll on the breeding industry as well, with the reduction of purses to the horsemen,” said Dissinger. In the early 1980s,Atlantic City took a swing at the gaming industry.Their success was followed by riverboat gaming and large-scale gaming developments by the Native Americans across the country, all of which also contributed to a further decline in revenue on the horse racing scene, according to Dissinger. “In the late 1980s, the introduction of interstate simulcasting allowed more opportunity to increase revenue for the horse racing industry. (But) that is still not enough,” said Dissinger. More needs to be done, he said, to save the sport and business of horse racing — currently valued at $1.4 billion in Pennsylvania as reported by the Pennsylvania Department of Agriculture this past June. The Tomlinson Bill is aimed at offsetting the state’s current budget deficit by introducing a new gaming market while preserving the horseracing industry. The combination of the two industries is anticipated to bring about other positive impacts on regional economic development through the expansion of hotels, restaurants, and other businesses that will benefit from an influx of visitors. According to Ewing Cole,“In order to accomplish this, integrated racing and gaming destination entertainment developments should be strategically located around the state to maximize the ultimate revenue potential in a region. Care should be given to identify locations that can capture revenues outside the borders of Pennsylvania.” “The racing venue must become part of a larger complex,” said Dissinger. Successful “destination entertainment” venues must be developed with a more comprehensive view that capitalizes on multiple revenue generators. “This includes interactive attractions, game arcades,‘eater’tainment,’ specialty retail, museum attractions, sports bars, hotel and conference faculties, and luxury spas. The overall goal is to maximize revenue by increasing patron length of stay and repeat visitation while enhancing the overall visitor experience,” Ewing Cole notes. “Legislation has stalled over the summer as proponents of the various gaming bills attempt to find agreement on the best plan for the state,” said Dissinger. The legislative debate centers around an important issue: to only introduce slot machines at existing, state-licensed racetracks and a few future ones and, in addition, to allow land-based faculties in urban areas.“The goal of this legislative initiative is twofold: add additional income to the state treasury through the taxation of additional gaming revenues, Above are two views of the proposed “Freedom Park,” a “racino” to be located off Route 33 in Palmer Township, provided it gets slots and a state license. According to the Allentown Morning Call, “other major players are looking to snare an available Pennsylvania license.” Churchill Downs is backing plans for “Pittsburgh Palisades Park,” a $500 million racetrack-casino-retail development. Magna Entertainment, a Canadian company, proposes to build a thoroughbred track near Pittsburgh International Airport. Edson Arneault, who operates a gaming resort in West Virginia, has pledged to donate $60 million to build a hockey arena for the Pittsburgh Penguins if Pennsylvania gives him a racetrack license. Rendering courtesy of Ewing Cole Cherry Brott while enhancing horse racing,” he added. Advocates of the bill want to retain Pennsylvania’s fair share of the gaming economy that has expanded significantly over the last several years in such places as Atlantic City and other states ,like West Virginia and New York, which have recently approved slots at racetracks. Those against the bill deem it “illegal and immoral,” saying it creates a potential for addiction, but proponents say it’s just another form of entertainment — one from which Pennsylvania has an opportunity to benefit. incidents in 1993 to 7,413 in 1994. NEVADA — With over 300 casinos, Nevada consistently ranks at or near the top among all states in per capita suicide rate, incarceration rate, high school dropout rate, deaths per vehicle mile, and child death by abuse. NATIONWIDE — US News & World Report (Jan. 15, 1996) computer-analyzed data from casino areas across the country. In terms of economic growth, the magazine found no significant difference between casino areas and the rest of the US. But crime rates in casino areas were nearly twice as high — 1,092 incidents per 10,000 population vs. 593 — and “towns with casinos have experienced an upsurge of crime at the same time it was dropping for the nation as a whole.” A final note: Ten years ago, problem gambling among teenagers in the United States was considered a rarity. In 1995 about 12 percent of the calls to the nationwide 1-800-GAMBLER helpline involved people under 21. Gambling: the pros and cons PRO: Members of Bring Our Taxes Home (BOTH) support placement of slot machines at Pennsylvania's licensed standardbred and thoroughbred racetracks “because of the revenues it will generate for state and local governments, for the jobs it will save and the new ones it will create and for bolstering Pennsylvania's sagging racing heritage.” BOTH members argue that this can be done simply by bringing home dollars now spent by Pennsylvanians on slot machines in neighboring states. Their argument: WHERE PENNSYLVANIANS GO TO GAMBLE Pennsylvanians made 9.6 million trips to gamble out of state in 2001 (That's an average of 26,200 trips a day) Twenty-five percent of monies wagered in Atlantic City come from Pennsylvania (Pennsylvanians made 2.9 million day trips and 4.3 million overnight visits to Atlantic City in 2001 and spent $2.88 billion). Pennsylvanians made 575,000 trips to Las Vegas in 2001 and spent $349 million there Forty percent of monies wagered in DE come from Pennsylvania. Twenty-five percent of monies wagered in West Virginia comes from Pennsylvania. Additional Pennsylvanians wager in New York, Connecticut, Canada. This adds up to a staggering $3.2 billion of Pennsylvania dollars spent (left behind) in those states. Most (80 percent) is spent on slot machines. And this doesn't include an additional $1.5 billion in non-gambling expenditures while in those states like lodging, retail, entertainment, food and beverage, transportation. (Sources: Atlantic City Visitor Profile - 1998 Final Report, Plog Research, Inc.; Profile of the American Casino Gambler, Harrah's Entertainment, Inc., 2002; International Gaming & Wagering Business, September 2002; Las Vegas Visitor Profile - Fiscal Year 2001 Annual Report, GLS Research; Las Vegas Convention And Visitors Authority Research Dept, 2002; Atlantic City Convention & Visitors Authority Research Department; Christiansen Capital Advisers) CON: Citizens for a Stronger Pennsylvania (CSP) is a campaign by Pennsylvanians Against Gambling Expansion (PAGE), No Dice, and other Pennsylvanians to prevent the introduction of various forms of casino gambling, including slot machines, riverboat gambling and video poker. CSP’s argument: IOWA — Problem gambling has more than tripled since casinos opened, with rates rising from 1.7 percent to 5.4 percent of all adults, said a 1995 statesponsored survey. A similar jump in Pennsylvania (which has about 8.4 million adults) would mean over 300,000 new problem gamblers. ILLINOIS — Gov. Jim Edgar admitted riverboat gambling “hasn’t increased tourism or generated new income.” The state’s Economic and Fiscal Commission found little evidence of spinoff benefits, and an independent study in June 1996 estimated the casinos actually produce $239 million per year in net losses for local economies — even counting tax revenues as gains. MINNESOTA — The state’s Restaurant and Hotel Association reported business down 20 percent to 50 percent at establishments near Indian casinos. Gambling-related personal bankruptcies have soared to an estimated 1,000+ per year, and a state that previously had just one Gamblers Anonymous chapter now has 53. WISCONSIN — A 1995 survey of customers at Indian casinos found: “More than 10 percent of the locals would spend more on groceries if it were not for the casino, while nearly one-fourth would spend more on clothes. 37 percent said that their savings had been reduced.” LOUISIANA — Political scandals and organizedcrime raids led gubernatorial candidate Phil Preis to joke in 1995, “The only growth industry we’ve got right now is the FBI.” Other negatives include a “very high” 7 percent problem gambling rate, and a study showing that riverboat casinos drained $102 million from the metro New Orleans economy through 1994. MISSISSIPPI — Thefts and other crimes roughly doubled in the towns of Gulfport and Bay St. Louis after casinos opened. In Biloxi, divorces rose 250 percent, crisis calls to a local women’s shelter doubled, and total violent crimes rose from 5,072 30 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 (Sources not cited nor taken from public records: Edgar quote, Chicago Tribune. Illinois study, Better Government Association of Chicago. Minnesota figures, Minneapolis-St. Paul Star Tribune. Wisconsin survey, Wisconsin Policy Research Institute. New Orleans study, Policy & Management Associates for URA of Pittsburgh.) TGI Friday’s benefits raise money for Make-a-Wish A check for $20,000 was presented to the Make-A-Wish Foundation of Northeast PA from money raised at the Wilkes-Barre, Williamsport and Quakertown TGI Friday’s Bartender Challenges and also at a recent benefit golf outing. From left to right are Andy Sweitzer, general manager, TGI Friday’s; Jeffrey Metz, vice president of operations, TGI Friday’s; Art Owens, director of program services, Make-A-Wish Foundation; and Jessie Hardy, president and CEO, Make-A-Wish. Downtown Hazleton. All Hazleton photos by Bob Urban N eighborhood blight, a declining population and businesses that moved out were all problems that plagued the City of Hazleton in the past. It wasn’t a malady peculiar to Hazleton but a familiar pattern that blossomed in thousands of mid-sized cities in the 1960s when the suburbs began their enormous growth. Today, it’s clear that this northeast Pennsylvania city is making a strong recovery that includes new downtown businesses and housing, and a new attitude. “We had a great work force but we had a negative image and we had to change that image,” said Mayor Louis J. Barletta. “When the image changes, attitudes change. Outside companies are then attracted to the city.” The mayor said that in the past, many businesses left the city because of the political infighting taking place. “When businesses see infighting, they’re CITY LOOKS TOWARD REVITALIZATION BY ROBERT CURRAN more apt to move their businesses to other locations,” he said. Like other cities, there was also a population drain. In1968, Hazleton’s population was 32,056.Today, the population stands at 23,000 residents. Working with developers and business organizations, and gaining state Keystone Opportunity Zone status, which provides tax abatement to companies, the city has numerous projects up and running. An important anchor downtown, on Broad and Wyoming Streets, is the tallest building in the city, the 12-story Markle Building, a well-known former bank that had been vacant since 1998 and was under decline. The building was purchased by businessman George Hayden and is going through a restoration. Eight companies are expected to be settled in the building before the end of the year, and Barletta said most are in there now. The clients include Markle Building Leasing and Property Management; Precision Medical Billing Solution Inc.; BNA Financial Services; Education Technology Services;The Hazleton Development Co.; Cedar Emergency Physicians Inc.; K 12 Software; and the Park Plaza Hotel. A ribbon-cutting took place on July 17, and Barletta believes that hundreds of new jobs will be the out- come at the Markle Building. In promoting Hazleton, city officials and business leaders point out that the city is within two hours of Philadelphia and New York City, and is located within a 300-mile radius of nearly half the population and total production of the United States. The mayor said that since he took office in 2000, more than 100 new businesses have opened in the city.The vacancy rate on the street level, he said was 16 percent in 1990; 20 percent in 2000; and 12 percent in 2002. Other signs of progress, the mayor said, include the Downtown Athletic Club, formerly a vacant bank, and now an active location with 800 members; Hazle Drugs, the city’s oldest pharmacy, which constructed a new building; Broad Street Business Exchange, the former site of two vacant department stores, but now housHazleton continues on next page July 1, 2003 This announcement constitutes neither an offer to sell nor a solicitation of an offer to buy securities. This offering is made only by the Offering Circular which is available upon request and only in the jurisdictions in which such solicitations and sales may lawfully be conducted. A growing Legacy! $10,000,000 Legacy Bank… LEGACY INVESTMENT UNITS $5,000 per unit (225 shares @$11.11 and $2,500 Convertible Debt Security @ 5.0% interest per annum) due 09/15/2018 S • One of Central Pennsylvania’s Fastest Growing Companies • $250 million in Bank Assets • 6 office locations in 6 Central PA counties ince its inception in 1999, individuals, professionals and business owners have experienced the power of Legacy Bank’s expertise to provide wealth building opportunities. Now you can participate in our capital campaign and own a local company. Raising additional capital will assist our efforts to grow and provide exceptional service to individuals, small businesses and professionals in Central Pennsylvania. Learn more about this capital campaign at a Capital Campaign Community Meeting to be held in your community this summer. The offering will end September 29, 2003. Capital Offering Community Meetings (RSVP required): Harrisburg/Camp Hill Thursday, July 31, 6 PM Hazleton Thursday, August 7, 6 PM Williamsport Thursday, August 21, 6 PM Towanda/Sayre Thursday, Sept. 11, 6 PM Radisson Penn Harris, Camp Hill PA Valley Country Club, Sugarloaf, PA Ross Club, Williamsport, PA Towanda Country Club, Towanda, PA Please call Melissa Tyrrell at 1-800-436-2124 ext. 107 to RSVP, for more information and an Offering Circular. Member FDIC w w w. t h e l e g a c y b a n k . c o m NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 31 ISO 9001:2000 REGISTERED COMPANY Independent Environmental Testing Laboratories • Certified DEP Safe Drinking water Laboratories. • NPDES & Industrial pre-treatment discharge programs. • Characterization of residual wastes. • Groundwater monitoring. We are The Scientist documenting our environment. 570-455-6011 www.hawkmtnlabs.com Markle Building The Altamont Continued from previous page Offices, Apartments, & Store Fronts Available. Newly renovated Dining room now available for banquets and weddings. Home of the Patrician, Personal Care Home. Rooms with private powder rooms available. Call (570) 455-9711 Come vist us on the web at www.TheAltamont.com :H·UHEHKLQG\RXLQEXVLQHVV &RPPHUFLDO,QVXUDQFH 0DNHVXUH\RXUEXVLQHVVDVVHWVDUHIXOO\SURWHFWHG)LUVW)HGHUDOFDQSURYLGHEXVLQHVV LQVXUDQFHSURJUDPVIRUFRPPHUFLDOSURSHUW\JHQHUDOOLDELOLW\ZRUNHU·VFRPSHQVDWLRQ DQG FRPPHUFLDO XPEUHOOD OLDELOLW\ 2XU NQRZOHGJHDEOH DQG ORFDO LQVXUDQFH VWDII PDWFKHV\RXUQHHGVZLWKSURJUDPVIURPILQDQFLDOO\VHFXUH$UDWHGFRPSDQLHV:HDOVR IHDWXUH D ZLGH UDQJH RI LQGXVWU\ VSHFLILF LQVXUDQFH SURJUDPV )LUVW )HGHUDO FDQ DOVR SURYLGH \RX DQG \RXU EXVLQHVV ZLWK FRPPHUFLDO ORDQ DQG GHSRVLW VHUYLFHV :H·UH FUHDWLYHDQGZH·UHFRPPLWWHGWR\RX3XWDJUHDWEDQNEHKLQG\RX VWIHGHUDOEDQNFRP +D]OHWRQ 6KDYHUWRZQ 0RXQWDLQWRS %ORRPVEXUJ )LUVW)HGHUDOZLOOQRWIXUQLVKDQ\VHUYLFHRUIL[RUYDU\WKHFRQVLGHUDWLRQIRUREWDLQLQJDVHUYLFHRQWKHFRQGLWLRQWKDWWKHFXVWRPHU REWDLQVRPHDGGLWLRQDOFUHGLWLQVXUDQFHRURWKHUVHUYLFHIURP)LUVW)HGHUDORUDQ\RILWVDIILOLDWHGFRPSDQLHV,QVXUDQFHSURGXFWVDUH EHLQJRIIHUHGE\DWKLUGSDUW\+LJJLQV,QVXUDQFHGED)LUVW)HGHUDO 32 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 (TXDO +RXVLQJ /HQGHU 0HPEHU)',& ing retail and professional offices and a branch of Luzerne County Community College; Altamont Building, a former hotel, now home to a restaurant, retail and services businesses; CAN DO (economic development agency) at the Renaissance Center; Brennan Law Offices, the first completed KOZ project; and Café Ultima, a California-style restaurant. With ongoing projects, Barletta said progress will continue in Hazleton, including improvements at the Hazleton Airport,which is owned by the city. The mayor said the city is re-addressing blighted neighborhoods and Pine Street was the first project. The city acquired three blocks and had blighted buildings demolished, and Barletta said the new neighborhood there will receive national attention. In center city, Barletta said, 25 new homes were built for people of all incomes, but the homes are not average. He said amenities in the environmentally friendly homes includes roof shingles that have a 50 year warranty, and master bathrooms upstairs and downstairs for families that want to bring their parents to live with them.“Bringing people back to the city will help new businesses and jobs we hope to locate downtown,” The new Barletta said. Hazle Drugs George K. Leitner, vice presStore. ident of Markle Building Leasing, agrees that the business activity in Hazleton will result in more companies coming to the city.“We had brain drain and now there’s brain gain,” he said.“Hazleton is going through a tremendous renaissance.” Is Your Business at Risk? Don’t let your client information go out with the trash! Call Windham to ... Securely destroy: medical and client files, personnel information, financial records, legal files, etc. Our Programs Conform with HIPAA/GLB Regulations! call Toll Free 877-225-3267 SECURE DOCUMENT DESTRUCTION Protect Yourself ... Protect Your Customers The right people make the difference We get to know our customers and are here to serve you day after day. Contact us for a job done right! Get powered up! Electric 26 years of Electrical & Communications Construction in Northeastern Pennsylvania TOLL FREE 1.888.202.4620 www.ArcElectric-Hazleton.com With more than 100 new businesses and industries since 2000, it’s evident that Greater Hazleton is on the grow! CAN DO’s economic development specialists and the Greater Hazleton Chamber of Commerce have been working together for more than 50 years providing exceptional support for business and industry to help them grow and prosper. To learn more about this growth and the many opportunities awaiting you, visit our web sites at www.hazletoncando.com and www.hazletonchamber.org I t used to be that prescription drugs were “compounded” or mixed by the pharmacist and made to order. Today, most pharmacies dispense pre-measured and premixed dosages of prescription medicines. Hazle Drugs, at two locations in Hazleton, has always provided compounding services and has extended that by specializing in hard-to-get items like homeopathic and herbal remedies, as well as hormone William Spear, Jr., co-owner, Hazle Drugs. replacement therapies. “We’ve been in business in downtown Hazleton for 135 years,” says co-owner William Spear, Jr., who with his father,William Spear, Sr., is building a state-of-the-art pharmacy with a learning center where they will teach the science of compounding. “The climate in Hazleton is one of revitalization and rebirth,” says Spear, Jr. “We have a long-standing commitment here, Hazleton feels like home, it’s always been home to us.” Though the city will never be a retail giant like the downtowns of generations past, people are getting excited he says.“It’s time to take a leap of faith in the city’s leaders,” he says, noting that people want something different.“Hazleton has a unique mixture of elements that the malls don’t have... professionals, arts and athletic clubs.” 7KLQN/RFDOO\ “I have a clear plan and vision for the revitalization and continued growth in Hazleton. I expect to see projects completed that will change the complexion of our region for many years to come.” Hazleton Downtown Athletic Club — Hazleton Mayor Lou Barletta 3LFWXUHGIURPOHIWWRULJKW$UWKXU7DURQH3DXOD3DODQFH%DUEDUD&DVVLVH 1548 Hwy. 315, Wilkes-Barre 570-826-0439 • (800) 924-TEAM FAX 208-1093 Airport Beltway, Hazleton, PA 570-455-4920 • (800) 464-TEAM FAX 455-3595 'LG\RXHYHUGUHDPWKDW\RXZRXOGVWLOOEHDEOHWRGR\RXU EDQNLQJORFDOO\")LUVW+HULWDJH%DQNLVORFDOO\RZQHGDQG RSHUDWHG2XUOHQGHUVOLVWHQWRWKHQHHGVRIHDFKFXVWRPHU 7KH\ÀQGVROXWLRQVWKDWZRUNWKDWKHOSV\RXJURZDQGVXFFHHG 7KLQN)LUVW+HULWDJH%DQN AUTHORIZED SERVICE CENTER FOR MAJOR BRAND POWER TOOLS Area’s most complete stock of construction, industrial and maintenance supplies & equipment ZZZ¿UVWKHULWDJHEDQNFRP $LUSRUW5RDG+D]OHWRQ NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 33 uring the almost 11 years I have been at First Federal, we have had several opportunities to invest further in our presence in the city or to consider relocating. We have always chosen the investment opportunity and have been pleased with that decision. During the past few years we have seen the downtown businesses community invest in the city in projects such as First Federal’s refurbishing of its offices at 25 and 31.W. Broad St, the occupancy of the Business Exchange office space at Broad Street and Laurel Street E. Lee Beard (First Federal is one of three banks that invested in this project with equity as well as loans), the renovations to the new Hazleton Downtown Athletic Club and the YM/YWCA, the renovations in process for the Markle and the Hazle Drugs buildings, and the ongoing community renovations for the Pine Street Community and various playground projects (First Federal's Charitable Foundation has been a contributor to these playground improvements). First Federal benefits from all of these improvements as the quality of life in downtown is improved for our employees, our customers and clients, and the overall community. These investments in downtown are generating renewed interest in Hazleton — a city First Federal has been proud to call home for over 65 years and a city that we look forward to serving for many years to come.” “D — E. Lee Beard, President/CEO, First Federal, Hazleton The Broad Street Business Exchange. Welcome to FNCB First National Community Bank Is Opening Soon In Hazleton. Come Celebrate With Us! 330-352 West Broad Street, Hazleton At First National Community Bank, community is our middle Office and Drive Thru Hours Monday – Thursday 9:00 – 5:00 Friday 9:00 – 6:00 Saturday 9:00 – 12:00 name, that’s why we are very excited to be a new member of the Hazleton community. Please allow us the opportunity to introduce you to some of the great banking products and services we have to offer, as well as our grand opening celebration special offers. Special In-Branch Bonus CD Rates! (CD terms may be limited.) FREE Checking Account for 2 years! FREE Senior Checking Account! Youth Accounts! Competitive Loan Rates! FREE Debit Card! (For qualified applicants, surcharges by other banks may apply.) 34 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Online Banking! Drive-Thru Service! Drive-Thru ATM! Holiday Clubs! Vacation Clubs! T here is much activity taking place in the Greater Hazleton Area. Many new businesses are opening throughout the area, Downtown Hazleton is seeing much revitalization with the renovation of the Markle Building and the new construction of the Hazle Drugs Building. In addition,The Altamont is also making some major improvements in that impressive structure.The YWCA just completed a major renovation project and the Pine Street Housing Project is just about ready to accept new tenants. In Hazle Twp. business is booming along the Airport Beltway and in the Humboldt, Route 924 area. Eagle Rock Resort is nearing completion on its new hotel and exercise/spa facilities with additional improvements and construction to follow. Not only is business growing in our area, but communities are coming together to promote just what Greater Hazleton has to offer through the Chamber’s new “Community Awareness Initiative” campaign.The campaign is geared towards highlighting the many activities/events that Greater Hazleton has to offer such as Funfest, First Night Hazleton, Harvest Moon Balloon Festival, sports, arts and culture.As president of YWCA/YMCA the Greater Hazleton Chamber of Commerce, I am very pleased with the progress of the Greater Hazleton Area and look forward to its continued growth. More new construction in downtown Hazleton. — Donna Palermo, President, Greater Hazleton Chamber of Commerce Are Your Files Crushing You? Let IMR Help IMR Introduces Local Document Storage with Digital Scan on Demand Conveniently Store Your Files With IMR and Retrieve Them Over the Web • IMR HIPAA Policy in Place • Confidentiality Assured • 100% Secure • Fully Insured 800-582-6319 Ext. 136 - Ask for Joe Cerullo www.imrdigital.com [email protected] NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 35 ChamberChoice health plan launches ‘vigorous’ regional expansion Dwindling health choices addressed by chambers By Ralph Nardone In October, over 22,000 area employees will be without health insurance coverage as another insurance carrier, Health Net, leaves northeast Pennsylvania. Companies like Health Net have been backing out of this area over the last few years because they cannot compete with local providers, says Jeff Rubel vice president of the Greater Scranton Chamber of Commerce. The affected employers will have to shop for a replacement insurance carrier to cover their employee benefits such as medical insurance, dental and vision insurance. However, Rubel believes the local chambers of commerce in northeast Pennsylvania offer an employee insurance plan to their members that can fill the void created by Health Net’s departure. The plan, which is administered by the Chambers of Commerce Service Corporation (CCSC), offers packages local employers can customize to fit the needs of their workforce, he says. The CCSC plan offers a variety of traditional and HMO plans as well as dental and vision coverage at a very competitive cost, Rubel says. At this time, about 200 member employers from the Scranton Chamber are using the CCSC plan named “ChamberChoice.” Rubel encourages any local employer with two to 50 employees to check with their local chamber about the ChamberChoice plan. Rubel said that the ChamberChoice provides coverage from stable insurance carriers, such as Blue Cross of Northeast Pennsylvania, so employers don’t have to worry about shopping around because their insurance carrier is pulling out of the area. Any employers interested in the CCSC plan must become members of their local chamber, which costs them $260 per year. Rubel said that chamber membership offers many other benefits and the CCSC insurance plan is one of the primary ones. Using ChamberChoice can result in lower premiums according to Jessica Hettler, chief operating officer of the CCSC in Pittsburgh. She says local employers can save 10 to 25 percent on their insurance premiums by using the CCSC plan compared to Health Net’s plan. Hettler adds that the CCSC plan offers more participating doctors and hospitals because it works through Blue Cross. Hettler points out that ChamberChoice administers the entire program, including billing, premium collection, claims processing, customer service, and so forth — taking that responsibility away from the employers, further reducing the cost of insuring their employees. She adds that small sized employers often do not have sophisticated human resources departments available to keep up to date on insurance. “Our ChamberChoice plan is very attractive to small businesses because it offers more than medical benefits. It also offers ‘one-stop shopping’ by offering all types of insurance through reliable carriers and the value-added administrative service provided by CCSC,” Hettler says. What makes the ChamberChoice plan so competitive is that it is customized to the employer’s work force demographics. The type of work the employees do, their age and sex, and other variables are all considered when the premiums are calculated. Plus, employers can manipulate coverage and deductibles to reduce premiums. So, if an employee is willing to forgo a certain type of coverage the plan can be altered and savings realized, Hettler adds. “ChamberChoice studied its members over the last decade to determine what they want for coverage options and at what cost,” Hettler says. CCSC put together the current plan and is finding an increasing number of employers are signing on each year. Hettler is confident ChamberChoice will expand significantly locally in the coming years. “We have a vigorous expansion program in place for northeast Pennsylvania,” Hettler says. She adds that ChamberChoice will continue to work with the best insurance carriers available. THEY’RE COMING TO N.E.P.A.... Available at 30 area hotels and regional attractions, the Visitors Guide provides travelers with the most current & comprehensive guide to travel planning. Designed to give travelers a wide assortment of fun-filled vacation ideas, our guide will carry your message to this group that wants to spend their money in your store. Reach a mobile market of 25,000 with this valuable resource. Publishing Dates: February, April, June, August, October, December. For More Information Call Times Shamrock Community Newspapers t o S c r a n t o n , L a c k a w a n n a C o u n t y , P A 36 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 (570) 207-9001 Economist: no evidence of ‘housing bubble’ With slow economic growth, stagnant or slightly rising mortgage rates, and a disappointing job market, housing sales in the near future may be dependent on consumer confidence and affordability, a Penn State Economist wrote as part of a quarterly economic review for the Pennsylvania Association of Realtors (PAR). Fortunately, homes across Pennsylvania remain at a fairly affordable rate, according to Dr. Jacob De Rooy, an economist in the School of Business Administration, Penn State Harrisburg campus. “The Pennsylvania Affordability Index is still high.Affordability depends largely on housing prices, buyers’ incomes, interest rates and other credit conditions,” De Rooy said.“Housing prices are not likely to grow at the torrid pace of the last few years. In some regions of Pennsylvania they are declining.As long as unemployment does not increase, housing prices do not rise above the general inflation rate (or decline), and mortgage interest rates do not increase, we can expect that affordability may actually increase.That will strengthen the market.” De Rooy said home-buying decisions are influenced by consumer confidence in the future. Higher levels of consumer confidence could strengthen demand for single family homes over the next few months and off-set any upward creep in mortgage rates. “The sharp decline in mortgage interest rates did much to boost housing demand up to this time, so do not expect any significant declines in the next year or two,” De Rooy said.“It is possible that interest rates will drift upward when economic recovery really takes hold.This forecast is based on projections of inflation.While prices of manufactured goods have been soft, prices of services are rising. The U.S. is largely a service economy so that costs of services are more important than are prices of manufactured items.” De Rooy also wrote that while some experts predict that the housing bubble will burst, that there are few indications that will actually happen. “Despite all the talk by non-professionals outside real estate, there is no evidence of a housing price bubble,” De Rooy wrote.“However, the growth rate of housing prices, which has been very high in most regions, will moderate to a more conventional level.” Coast Guard Auxiliary sets ‘boating certification’ class The U.S. Coast Guard Auxiliary Flotilla 15-04 is conducting a 10-week “Boating Skills & Seamanship” course beginning September 29.The course covers the requirements needed to obtain a state boating certificate, which is now mandatory for persons born on or after January 1, 1982 operating a powerboat of more than 25 horsepower on Pennsylvania waters. The bill,Act 199 of 2002, was signed by former Gov. Schweiker and became effective on Feb. 7. Course topics include engine maintenance, trailering, navigation, boating rules, weather, the buoy system, communications and safety equipment, and usage.The information is applicable to watercraft of every size. For more information, call (570) 383-3842. It’s bad news if you haven’t heard any bad news lately bad news in a while, that may be the REALLY bad news requiring attention. Contributing to the recent debacle at Here are some tips that helped me and the New York Times was an environment that may help you elicit and respond to bad where subordinates were uncomfortable news for the good of the organization. sharing bad news. “Personnel Decisions It’s sad to say, but most of us International’s Successful Manager’s know managers like the editors Handbook” is an excellent resource at the Times who disconnected for more background. from the unpleasant challenges ■ Be open to the expression facing their organization. of opposing views. In the way The manager’s ability to help you respond to challenges and the organization achieve its goals bad news, you can help others faltered and, in extreme circumfeel that you took the time to stances, a real disaster occurred. understand their point of view. Smedley Jim Pilversack, an executive It won’t work to say “I want to coach and chairman of a CEO change, and I hope you’ll start support group with clients in northeast sharing bad news with me.” Rather, take Pennsylvania, comments that executives advantage of discussions where you often feel they are shielded from and the sense concerns as they occur naturally. last to know what’s really going on withNeutral ground, like a conference room, in their organizations. works much better than your own Is it that they are ogres, hold a grudge, office, especially as you begin building seek revenge and kill the messenger? credibility in this approach. Perhaps. But, since those types couldn’t ■ Be prepared. Check your own motiimagine this column relating to them, I’ll vation and emotions. As you invite opposfocus on the well-intentioned leaders ing views, take a nondefensive stance. among us who unwittingly convey the Learn not to take the criticism personally; message that bad news is not welcome. monitor and focus on changing your own While I was a director at a Fortune 500 thinking, emotional state and body lancompany, a co-worker shared the followguage. Bring a stance of genuine curiosity ing:“Lee, I know you ask for feedback, and active listening to the problem and and I’ve seen your positive actions in how its solution can help your group response to it. But when I offer it, you respond. If you are, indeed, nervous and seem to be in such pain, even angry. I’ll tense, then begin with one-to-one converhave to admit, I think twice before comsations with staff and co-workers with ing to share bad news. I wonder if others whom you have good relationships. come at all.” As you become more comfortable, What a shock: not my intentions, not my expand to conversations with those who actions, but my emotions and body language have been reluctant to speak and to had betrayed me. If you haven’t heard any groups. As you develop credibility, your confidence will grow along with your reputation for being more accessible. ■ Listen first, second and third. Respond last.Your training in active listening will serve you well here; seek first to understand, then to be understood. If you want your co-workers to share their concerns more freely, you must avoid jumping quickly to judgment, criticism or rebuttal. Limit questions that begin with “Why,” as many sense them as interrogation. Rather, seek background and history to better understand the speakers’ point of view, using phrases like “Tell me more about… Can you help me understand the background on this?…I’ve not been aware of this issue, but am interested in hearing your point of view…” Share your understanding of the major points and confirm whether or not it matches the speaker’s view. Next, see if you can elicit approaches from the speaker and others on how to deal with the issue. Then and only then should you begin sharing your own interpretation, reaction or judgment. ■ Whenever possible, use the information you gain to create positive change. Listening to bad news and employee concerns without responding or taking action will backfire. But, taking positive action will speak volumes. It also encourages others interested in positive change to speak up in the future. ■ When you choose not to take action on the information, explain why. Even if your staff doesn’t like your reasoning, they will respect your having listened to their points of view and having explained your decision. ■ Build a culture that anticipates, addresses and celebrates solving challenges.This suggestion will take considerable time and commitment. Assess your own and your staff’s attitude towards bad news and problems that threaten your group’s performance. Consider changing subtle but important elements of your operations — things like meeting agendas, what you talk about informally, and what you celebrate. Try a “here’s a problem I’d like to ask for help with” meeting agenda item, talking up the proactive work being done to address a threat head on, and bringing in pizza when that challenge has been overcome. Recognize and give special assignments, even promotions, to those who bring up and take action to address bad news. You’ll know your culture is changing when you return from vacation and get the report of a major challenge identified and actions already taken to address it. With some time and attention, you can create an environment where you’ll begin to hear bad news freely shared and positively addressed. It surely beats silence. Lee Smedley, Ed.D., is an organizational development consultant. Learn more about his work at www.theconsultantsforum.com/smedley.htm Rated #1 Franchise Northumberland County officials meet with governor Jared’s Favorite Franchise! www.npbj.com www.npbj.com www.npbj.com www.npbj.com www.npbj.com Make it easy for employees to bring you the bad news By Lee Smedley, Ed.D. Throughout August, Gov. Edward Rendell hosted representatives of each county at his residence to discuss the economic stimulus package that he is trying to get passed, as well as economic development projects now in progress or slated to start within the next four years throughout the state. On August 12, Northumberland County had the opportunity to speak with the governor, his top aides and department heads, as well as representatives from DCED (Department of Community and Economic Development); DEP (Department of Environmental Protection); and PennDOT. Representing Northumberland County was Rep. Merle Philips; Commissioners John Boback, Robert Greco, and Sam Deitrick; James King from the Northumberland County Industrial Development Authority; Barry Miller from Susquehanna Industrial Development Corporation; John Shipman from Sunbury Pride and Renaissance Coalition; Robert Hickox from the Milton Area Chamber of Commerce; and, from the Brush Valley Regional Chamber of Commerce, Sandra Hutchinson, CEO; Richard Subasic, president; and Melissa Hovenstine, chair of the Economic Development and Governmental Affairs committee. The meeting began with a push by the governor in support of his eco- nomic stimulus package. Rendell also announced that the DCED is starting a low-interest rate loan for acquiring new sites designed for industrial development, the details on this program will be provided to the state’s chambers of commerce this fall. The governor reviewed projects currently in progress throughout Northumberland County, including the “Butternut Creek Project.” Rendell announced that $4 million has been set aside for this project and, as soon as an agreement is received from Mt. Carmel Township, the money will be released. The projects’ primary design will be to construct a rectangular concrete channel and concrete box culverts along Shamokin and Butternut Creeks in the Borough of Mt. Carmel and the Township of Mt. Carmel. Once constructed, it will provide flood protection to the residents of both Mt. Carmel Borough and Mt. Carmel Township.Another project that was discussed was the “Cameron Bridge Project.” This project will alleviate the daily congestion and improve the safety of travel at the intersection of state route 61, state route 225 and 2nd Street in Shamokin. PennDOT indicated that $13.5 million has been allocated for the project; construction will begin in 2005 and it will take two years to complete. 19,000 Restaurants in 75 Countries ✰✰✰ ✰ Amazing Track Record ✰ More Than 36 Years Experience ✰ Low Start Up Costs ✰ Simple Operation Opportunities ✰ Multi-unit Available ✰ Entrepreneurs Wanted for Immediate Development in Northeastern PA CALL US TODAY! ✰ 1-800-888-4848 ✰ 1-610-366-8120 www.subway.com SUBWAY® is a registered trademark of Doctors Associates Inc. This offering by prospects only. is now “live” NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 37 Tobyhanna sets lean practices G2 Integrated Marketing A new process is helping Tobyhanna’s transformation to a lean organization. The depot’s Lean Enterprise Office is introducing another tool, called “6S Process.” “The purpose of the 6S initiative is to create and maintain an organized, clean, safe, high-performance environment by Marketing, Advertising, More… Leave your mark. ™ (866) 980-4242 www.g2marketing.biz [email protected] Go With MOYER AVIATION! It’s your time ... your plane ... you’re there! • Charter flights to all points in the U.S. & Canada • Personal Travel • Reasonable Rates • High Priority Delivery • Pick up at all area Airports Personal Transportation on Your Schedule 800-321-5890 www.moyeraviation.com OFFERING SOLUTIONS FOR: Web Print Interactive Media Virtual Tours (Quicktime VR) A Tobyhanna worker implements ‘6S.’ following the 6S process,” said Sharon Smith, chief of Tobyhanna’s Productivity Management Division, Resource Management Directorate.“Implementation of 6S will simplify the work environment, while improving quality, efficiency and safety.” Lean requires an organization to think in terms of the product and look at its processes like the customer would. Personnel organize around what adds value to the customer and eliminate or minimize what doesn’t. Implementation of 6S will simplify the work environment, while improving quality, efficiency and safety, Smith said. The six S’s are: Safety is applied to all of the other five S’s. Sort the unnecessary items from the workplace.Straighten what’s left after the sorting is completed. Scrub/Shine the work area to thoroughly clean it after the clutter has been removed and the necessary items have been properly located and straightened. Standardize the best practice in the work area. Sustain focuses on defining a new status quo and standard of workplace organization.This is considered the most difficult “S” to achieve because human nature resists change. Ad agency staff ‘stars’ in ‘Sex and the City’ On July 28 the staff of DFA Inc. was in New York City strutting their stuff on the set of “Sex and the City.” And they were literally strutting all day long, take after take, walking past the “Sex and the City” stars as they shot their scene at 92, an Upper East Side restaurant. “You can’t believe the amount of time it takes to shoot a three-minute scene,” said Lisa Smith, a designer at DFA. It all started when DFA met Michael Patrick King at a Scranton chamber dinner.“I’m such a big fan of the show, I can’t tell you how excited I was to get a chance to be on it,”said Tricia Pegula, media director at DFA. “We sent them our head shots and were surprised when they called and said they wanted everyone to be on the show,” said Michael Frigoletto, creative director. Being on the set gave DFA a real appreciation for what it takes to produce a major TV show.“We produce a lot of local TV commercials on budgets that would not even pay for the breakfast for the extras” said Frigoletto. “The stars are so beautiful, even more beautiful in person” said Tara Smith, account supervisor at DFA. Pegula got her brush with fame when she bumped into Sarah Jessica Parker. “She was so nice.The only thing I could think to say was,‘That’s a great purse.’ She laughed and said,‘I know. I wish I got to keep it.’” “We did get to speak with Michael Patrick King. He was walking by and I said something stupid like,‘Hey Scranton,’ but it stopped him in his tracks. He was so grounded and magnanimous, he complimented us on how great we looked and said that we did Scranton proud,” said Paul DeLuca, president of DFA. The entire staff of DFA will appear on the September 14 episode of “Sex and the City.” But don’t blink — you might miss the backs of their heads or shoulders passing the girls. www.blackout-design.com 1.888.224.1802 info @ blackout-design.com 38 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 A Proud Member of the Greater Scranton Chamber of Commerce From left to right: Tricia Pegula, Lisa Smith, Paul DeLuca, Tara Tomasetti-Smith, Michael Frigoletto. Since ‘Do-Not-Call,’ telemarketers homing in on precise targets Call center employees are being trained to be ‘consultative’ rather than ‘assumptive,’ says telemarketing executive By Ralph Nardone The “Do-Not-Call” law has put telemarketers against the ropes. Over 30 million telephone numbers across the United States are registered for Do-Not-Call. Since the government’s hand is raised to restrict “out-calls,” where telemarketers call unsuspecting targets, marketers are now concentrating their efforts on maximizing the sales potential of “in-calls,” where customers call toll-free numbers to gather information, complain, or make a purchase. Call center employees are being trained to be more consultative, helping meet the needs of callers, rather than assumptive, trying to stumble upon a potential sale, according to Reenie Johnson, vice president of client operations at Telerx Marketing Inc., in Hanover, Luzerne County. She says the 250 employees who handle the over two million calls a year concentrate on “responding directly to caller feedback.” They are more concerned with answering their questions than posing questions to them, she says. Telerx contracts its call center services to 60 different clients who utilize the call center as a strategic marketing tool, Johnson said. Depending on what the clients objectives are, and the objectives can be just learning about the customer or making an intense sales push,Telerx gathers key market information. When a Telerx representative is talking with a customer, they can learn a lot of things, she says. Telerx provides a valuable customer records management service, Johnson adds.They categorize calls by type, for example: complaint calls; compliment calls; ship date inquiries; and technical inquiries.“This information is valuable to our clients because it helps them determine the reasons for the success or failure of a product or the changing needs of the consumer,” she adds. Johnson notes Telerx will customize its call service messaging based on the client’s needs.“Some clients use marketing messages to the caller to build awareness of new products,” Johnson said. “Others want to do promotion,” she said. Johnson notes telemarketing strategies are very effective tools.“The bottom line is telemarketing sells,” she added. George Monahan, telecommunications design expert at Guyette Communications in Plymouth, Luzerne County, says the “auto attendant” telephone answering systems he offers his clients can be customized to callers with any type of message during their calls. Callers can be pitched new product promotions when they are being routed to their requested destination.And, they can offer deals when customers are waiting on hold. Using messages that make sales pitches have become increasingly popular for when customers are on-hold versus play- ing music or a local radio station Monahan says.The customer who calls in and is put on hold is a prime target for promotion, he says.They are already an established consumer and are therefore directly interested in the organization they are calling. The on-hold message may be general information, Monahan adds, or can be targeted with more precision based on what the caller is requesting. For example, a customer calling to purchase clothing can be listening to a message offering upcoming seasonal specials while waiting for the representative to pick up the call and finalize the transaction.The messaging can be targeted because, when customers call, the marketer and the customer both know why they’re there. Monahan emphasizes that utilizing call promotions is a relatively inexpensive marketing tool compared to mass market advertising or personal selling through a sales force. Plus, it’s a method with good target market precision, he says. Linda Roerig, inside advertising manager for the Scranton Times in Scranton, says her staff play a consultative role to help customers meet their needs. Roerig says a lot of time is spent “giving the caller an ‘Advertising 101’ course.” “When an advertiser calls, they seek our educated opinion about what the best advertising strategy is for them,” Roerig says.“We don’t make pitches to the caller OPEN FOR BUSINESS unless it can benefit them,” she adds. Roerig differentiates between telemarketing and inside sales. Reenie Johnson, vice president Teleof client operations at Telerx market- Marketing Inc., says the future ing of telemarketing is in answeruses ing questions, not trying to “stumble on a sale.” outcalls to pressure customers into buying a product and often takes advantage of them. That is why the Do-Not-Calls were initiated, she adds. Roerig says her staff are inside sales personnel who take the time to interview the callers to learn about their business and objectives.Then they can propose an advertising program based on a “qualified and professional opinion.” “We are filling a need versus seeking a way to manipulate someone into a purchase,” Roerig says. Look for Northeastern Pennsylvania Business Weekly every Sunday. It is the largest, most comprehensive business news section in the area — providing you with business news and trends from Lackawanna and Luzerne counties, as well as advice on pocketbook issues. Features include the Harvard Business Review; People on the Move — featuring business people throughout the region; Advice from the Experts — area finance experts answer your questions in a weekly column; and Business Briefcase — a list of upcoming events, conventions, lectures, trade shows, etc. Look for “Business Weekly” every week in To subscribe to The Sunday Times call 348-9190; to The Sunday Voice call 821-2010. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 39 L Leadership Quality eaders, molded from the circumstances of their lives and the drive from within, share some basic traits but differ in style and skill. A few professionals offered their opinions on the leadership styles of President George Bush, Defense Secretary Donald Rumsfeld, Secretary of State Colin Powell and Senator Hillary Clinton. Intelligence tops the list of traits shared by successful leaders. “To be a good leader, you have to be smarter than your troops,” says William J. Parente, Sr., Ph.D., professor of political science at the University of Scranton.“You have to be able to express yourself spontaneously when the press is interrogating you. Powell, Rumsfeld and Clinton, in particular, are articulate. Bush is learning on the job.” But strong opinions from Rumsfeld and Clinton, who tend to overstate their ideas, can hamper their effectiveness. “It’s important for a leader not to alienate segments of the people he serves,” says Parente.“I think that means you have to moderate your own political views so as not to make the job of leading these people more difficult than it already is.” Paradoxically, Colin Powell’s style displays that moderation, a characteristic that draws unified support and bonds ideas along nonpartisan lines. Humor also creates a bond between leaders and those they guide.“Bush is very good at this,” says Parente.“It speaks to a person's selfconfidence and innate self-esteem if you can make fun of yourself.” But some situations call for challenge, and responsibility exhibits a leader’s true grit. “America desperately needed a decisive,toughtalking task-oriented leader to make us feel safe and powerful again after 9-11,and that happened to be President Bush's strength,” says Henry O. Patterson,Ph.D.,assistant professor of psychology at Penn State’s BerksLehigh Valley campus.“He effectively used confrontational and competitive strategies to build cohesion and confidence among Americans.” When factors change, such as the end of war and economic decline, Powell strength can turn to weakness. Change requires a more deliberative, collaborative and consultative style than the President has displayed so far, according to Patterson.“If he is not flexible enough to change his style in response to changing situations, his leadership effectiveness will likely diminish over the remaining years of his presidency.” Patterson questions whether Donald Rumsfeld will be able to adjust his style to a more collaborative and consultative one as the world situation changes. Since September 11, Rumsfeld comforted Americans’ fears with his confidence, certainty and willingness to use his powers in the face of extreme circumstances. “Rumsfeld's style appears to be textbook task-oriented autocrat,” says Patterson.“This style works best when the situation is highly uncertain and followers want and need structure and clarity.” But good leaders surround themselves with others whose skills and styles supplement their own.“Secretary Powell displays some qualities of a transformational leader — someone who can inspire others by virtue of his accomplishments and his character,” says Patterson.“Unlike President Bush or Senator Clinton, who rose to prominence in part because they were thrust into the public eye, there is little doubt that Secretary Powell achieved his success because of his own skill and determination. He earned his position, and that in itself gives him respect, credibility, and influence as a leader.” Powell’s effective management skills and consultative, people-oriented style contributes to his popularity today and to his inspiring success as a general. Similar to Powell, Hillary Clinton appears to be more consultative and people-centered in her style and capable in her own right, despite her lack of experience.“A liability Senator Clinton appears to have as a leader is lack of credibility,” says Patterson.“Doubts that many people have about her management of personal finances and her reactions to her husband's affairs don't inspire confidence or loyalty.” But motivation defines the style of all leaders, according to Cathy L. Greenberg, executive director of the Institute for Strategic Leadership, LeBow College of Business, Drexell University and co-author of “Global Leadership: The Next Generation.” Motivation by affiliation, power or achievement drives every leader. “President Bush is motivated by achievement,” says Greenberg.“I don’t think of him as somebody who is motivated to do things without the appropriate information. I think he is driven by a specific set of milestones and an end point that he has judged with a very strong set of values and principles.” Successful leaders complement their own strengths with those of differing skills and styles. “Colin Powell combines affiliation with achievement quite well,” says Greenberg.“He is somebody who does well in negotiations.That’s a reality of what I call emotional intelligence: his capacity to read others and to respond in a way that allows him to create an opportunity that people can get together, as opposed to a position of win or lose.” Rumsfeld, like Bush, is more motivated by achievement.“He tends to make decisions based on firm, practical information that’s usable for his particular point of view at the time,” says Greenberg. Rumsfeld’s influence permeates through the ranks.“His people are dedicated, practical,” says Greenberg.“They serve in all capacities to each other, to the public, to the military.” His style balances well with Powell’s to create a dynamic partnership. Dynamic accurately describes Hillary Clinton, whose motivation focuses on power.“A power individual uses the style of dressing for success, influence and discussion to achieve an outcome,” says Greenberg.“They generally do it in combination with their strong understanding and emotional intelligence around affiliations.” Clinton’s powerful presence and good judgment helped to gain the respect of her peers.She reflects the traditional female executive who toiled to succeed in a male-dominated world. “From our research, we found that women are much better at shared leadership and network leadership than their male counterparts,” says Greenberg.“I think Hillary practices that well.” So what can we learn from these notable leaders? “The use of accurate information balanced with perspective from the population that they serve is always important,” says Greenberg. “Relying on information in a vacuum on a logi- 40 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Clinton Bush Rumsfeld cal path doesn’t necessarily always get you to the end point that you want.” In order to be a successful leader, you have to use information from several different means but you can’t rely on that information solely.” Learning to separate the wheat from the chaff requires intelligence and savvy. “Leaders are not leaders unto themselves,” says Greenberg.“They have to practice their leadership in a network of people who are helping them with leadership.” Recognizing you can’t be all things to all people and sharing leadership provides a key component for success. By Kathy Ruf f “I think leaders who surround themselves with people who are very similar to themselves are making a very large mistake because they will not get the balanced perspective they need when they make decisions,” says Greenberg. Finally, recognition of diverse styles provides the foundation for leadership success. “I have worked in a lot of companies where the leader is surrounded by people who use the same characteristics and the same style of the leader and that doesn’t really get you where you want to be long term,” says Greenberg.“The companies that I’ve seen be successful over 15, 20 years do so because they recognize that diversity of style and thinking are complementary in the long run.” Tomorrow’s leaders learn what to do — and what not to do — from those who lead today. Their legacy is our future. Raymond Cattell, a pioneer in the field of personality assessment, developed the Leadership Potential equation in 1954. The traits of an effective leader include the following: Emotional stability. Good leaders must be able to tolerate frustration and stress. Overall, they must be well-adjusted and have the psychological maturity to deal with anything they are required to face. Dominance. Leaders are often times competitive and decisive and usually enjoy overcoming obstacles. Overall, they are assertive in their thinking style as well as their attitude in dealing with others. Enthusiasm. Leaders are usually seen as active, expressive, and energetic. They are often very optimistic and open to change. Overall, they are generally quick and alert and tend to be uninhibited. Conscientiousness. Leaders are often dominated by a sense of duty and tend to be very exacting in character. They usually have a very high standard of excellence and an inward desire to do one's best. They also have a need for order and tend to be very self-disciplined. Social boldness. Leaders tend to be spontaneous risk-takers. They are usually socially aggressive and generally thick-skinned. Overall, they are responsive to others and tend to be high in emotional stamina. Tough-mindedness. Good leaders are practical, logical, and to-the-point. They tend to be low in sentimental attachments and comfortable with criticism. They are usually insensitive to hardship and overall, are very poised. Self-assurance. Self-confidence and resiliency are common traits among leaders. They tend to be free of guilt and have little or no need for approval. They are generally secure and free from guilt and are usually unaffected by prior mistakes. Compulsiveness. Leaders are controlled and very precise in their social interactions.Overall, they are very protective of their integrity and reputation and consequently tend to be socially aware and careful, abundant in foresight, and very careful when making decisions or taking specific actions. Beyond these basic traits, leaders of today must also possess traits which will help them motivate others and lead them in new directions.They must have the following personality traits: High energy. Long hours and some travel are usually a prerequisite for leadership positions, especially as your company grows. Intuitiveness. Reasoning and logic will not get you through all situations. In fact, more and more leaders are learning to the value of using their intuition and trusting their “gut” when making decisions. Maturity. To be a good leader, personal power and recognition must be secondary to the development of your employees. Team orientation. Instead of promoting an adult/child relationship with their employees, leaders create an adult/adult relationship which fosters team cohesiveness. Empathy. Being able to “put yourself in the other person's shoes” is a key trait of leaders today. Without empathy, you can't build trust. Charisma.Leaders who have charisma are able to arouse strong emotions in their employees by defining a vision which unites and captivates them. Using this vision, leaders motivate employees to reach toward a future goal by tying the goal to substantial personal rewards and values. Source: Small Business Administration Mericle hosts event at Hanover Industrial Estates Hanover Township, Hanover School District officials and Wilkes-Barre Chamber representatives were on hand last month to help Mericle Commercial Real Estate Services promote the benefits of locating a business in the Hanover Industrial Estates. Steve Yokimishyn, a member of the Governor’s Task Force, provided key information on Keystone Opportunity Zones (KOZ) to real estate professionals and prospective tenants. Mericle opened the doors of three of its properties, the 144,600 square foot facility at 1058 Hanover Street; the 55,556 SF facility at 535 Stewart Road; and 320 Stewart Road, a 108,000 SF Butler building with many modern state-of-the-art features. Mericle has made a significant investment in the local economy through its development of over two million square feet of property in the Hanover Industrial Estates and nearby Hanover Crossings. Together with its regional partners, Mericle has helped relocate over 40 businesses and bring over 1,600 new jobs to the area in these two parks alone. Mericle Commercial Real Estate Services is a full-service commercial and industrial real estate company specializing in development, brokerage, construction, and property management. For more information, phone (570) 8231100 or visit www.mericle.com Seen at the open house were, left to right,Tom Williams,Team PA coordinator/ retention specialist, Greater Wilkes-Barre Chamber of Business and Industry; Donna Sedor, vice president, communications, Greater Wilkes-Barre Chamber; John Augustine, director of Innovation Center operations and entrepreneurial development;Tom Ruskey, project development specialist, Greater Wilkes-Barre Chamber; Bob Besecker, vice president, brokerage, Mericle Commercial Real Estate Services; Lorraine Heydt, Hanover Area School District; Steve Yokimishyn, Governor’s task force; Dr.Alberta Griffiths, superintendent, Hanover Area School District; Jim Hilsher, vice president, marketing, Mericle Commercial Real Estate Services; John Sipper, Hanover Twp. commissioner; Robert Frodsham, Mericle Brokerage; and Robert Burns, Hanover Twp. commissioner. In attendance but not pictured: Florence Lohman, Hanover Township board of commissioners. California wholesale distributor leases space in Rock Creek Corporate Center, brings 80 sales jobs A California-based wholesale distributor of hand tools and industrial supplies has entered an agreement to lease 4,200 sq.ft. of Class A office space at the Rock Creek Corporate Center in Olyphant, effective last month. The company,Tools for the Trades, is the largest distributor of Bosch accessories in the United States.The company also carries Mikita, Milwaukee, 3M Electrical and Thomas & Betts products. “We were interested in opening an office in the Mid Atlantic region and were very impressed with the tremendously productive labor force the area has to offer.We couldn’t be happier with our offices here,” said Dave Wilding, president, Tools for the Trades.“It’s an absolutely beautiful building with fantastic amenities and the perfect location.The ownership of Rock Creek is top-of-the-line.They were very accommodating and moved the transaction along very quickly.” Tools for the Trades, with three other locations in Santa Barbara, Boston and Austin, is currently looking to fill 80 sales positions in marketing for their national sales organization. Employment is ideal for former contractors, but no experience is necessary.Anyone interested in employ- ment opportunities at Tools for the Trades should call (570) 487-1900. Rock Creek Corporate Center is located off of Exit 2 of the Casey Highway in Olyphant. For more information on the Rock Creek Corporate Center, call Andy Glosser or Peter Saligman at (570) 383-3900 or take a virtual tour of the building at www.rockcreekcorporatecenter.com. HEALTHCARE UPDATE FALL 2003 Healthcare choices to help you maintain your business and your life. From employee rewards to stress reduction... Business and the healthcare industry work hand in hand. It’s important for every employer to understand the constant changes occurring every day in the healthcare industry. The Fall 2003 edition of the Healthcare Update will take a look at: NEPA’s public health system: is it prepared for a crisis? • Bioterrorism, SARS, even West Nile virus are real potential threats to the region’s populace. • How ready is our public health network to respond to these crises? • Can health officials recognize the signs and symptoms? Are they trained and ready to respond? Find out in the Fall 2003 Northeast Pennsylvania Business Journal Helathcare Update. Just a few reasons this supplement is made available... The Healthcare Update is a semi-annual publication focusing Publication Date: October 2003 on the healthcare field and is a vital supplement for business owners and managers. We invite you to be a part of the most recognized supplement in healthcare. Take advantage of the Advertising Deadline: September 15, 2003 exposure by advertising in the Northeast Pennsylvania Business Journal Healthcare Update. Call the Business Journal today. 149 Penn Avenue, Scranton, PA 18503 570-207-9001 • 877-584-3561 Fax 570-207-3452 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 41 Focus on architects and engineers: The old is new and vital again By Ralph Nardone Northeast Pennsylvania cities and towns are dotted with interesting architecture created years ago. Many area investors and policy-makers are focusing on restoring these buildings to house the offices, stores, and residences of the future. The issues in restoring these venerable fixtures center around how to take a property built in the late 19th century and maintain its “historical significance” while meeting the requirements of its new occupants, say local architects. Richard Leonori, a partner with Hemmler Camayd, an architectural firm in Scranton that is currently working on the old Scranton Central High School building now the headquarters for Lackawanna College says some parts of that building had to be “modernized” and other parts restored. “Every building has some attributes worth restoring.A professional architect can usually tell by looking at them whether they are worth restoring,” he said. The Central High School building was built in the late 1800s and early 1900s and the restoration project will take about six years and cost over $15 million.The project should be completed in 2006. “The building has an outstanding exterior envelope,” Leonori says.“The interior is where most of the work has to be done,” he says.The exterior has the details from a time when architecture was done with a high level of “artistry and craftsmanship,” he adds. The objective is to ally the building’s aesthetic features with its new functions, he said. The architects said they were able to restore the theater, now named the Mellow Theater; the massive lobby; the ornate corridors; and the library, which now is the boardroom for Lackawanna College. But other areas had to “succumb to modernization” Leonori says.“Central High School used to have a boy’s and a girl’s side, with separate lockers and showers. That all had to be changed,” he said. In the early 1900s, buildings were designed with excessive partitioning, an office design trend of the time. Now, offices are designed to be wide open to allow flexibility and maneuverabil- ity, Leonori says. So, walls had to be removed and floor plans changed, he said. The building had to be brought up to current fire codes. It had a open staircase, which was popular earlier in the past century. However, today, those wide open areas are considered big chimneys by fire officials, Leonori adds. In addition, firerated doors are needed. Leonori notes that buildings constructed after the 1920’s usually require less fire and safety-related changes because, by and large, they live up to modern codes. But those built before that time are usually not compliant with current codes at all, he says. Another modernization necessity is making the building handicap-accessible, Leonori says.That was not a priority in the early 1900s. For example, some corridors and elevators had to be changed so wheelchairbound visitors can use them. Leonori points out that new construction can be “very disappointing.” Newer buildings are often not as sturdy and can be very nondescript. He adds that the Central High School building has a “uniqueness and character” that make it worth restoring. George Leitner, vice president of the Markle Building located in downtown Hazleton, says that when an old building is targeted for restoration, then designers, investors, builders, and consultants all must work as a team. The 12-story Markle Building, constructed in 1910, is the highest structure in Hazleton and its restoration will cost around $5 million. Another six story section, built in 1923, is attached. C COLMAN SALES CO., INC. IMAGINATION. Clarks Summit, PA 18411 • 570.587.1188 • fax 570.587.4798 www.colmansales.com • Jim Colman, Owner Proud Suppliers of Industrial and Commercial Equipment for Over 50 Years in Northeastern Pennsylvania Companies We Represent: GREENHECK FAN CORP: Including industrial fans, commercial fans, kitchen hoods, architectural louvers and dampers DUCTSOX INC: Fabric duct for interior design, wide color selection available BILCO COMPANY: Floor doors and roof scuttles for any application from sewage treatments to warehouses with smoke vent requirements. OHIO GRATING: Steel, aluminum, fiberglass grating, walkway style, bridge and forklight grating, fiberglass grating available for chemical applications. Projects We Have Been Involved With Include: • The Lackawanna County Stadium • Wachovia Arena • Many Area School Districts • Proctor and Gamble • Various Commercial Buildings Colman Sales Co., Inc. will be happy to discuss any construction applications with you! 42 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 DELIVERED. At Borton-Lawson we know that brilliant ideas, well executed, are essential to your project’s success. That’s why we’re committed to delivering imagination– on-time, on-budget. . . and always on-target. We’re wide ranging–so whether it's engineering and architectural design for a major building; civil engineering needed to reduce the effects of development on the environment; unique industrial power alternatives that increase productivity; or designing a bridge to the future–count on Borton-Lawson for bold new ideas and the infrastructure to accomplish the task. For a comprehensive portfolio and project success reports, call 570-821-1999 or visit borton-lawson.com. E N G I N E E R I N G | 613 Baltimore Drive, Suite 300 • • 6814 Chrisphalt Drive, Ste. 200 A R C H I T E C T U R E Wilkes-Barre, PA 18702-7903 Bath, PA 18014-8503 • • Voice: 570 • 821 • 1999 Voice: 610 • 837 • 5916 There’s renewed interest and new use for the area’s architectural gems. Gothic arches grace the exterior of the renovated Lackawanna College building, Scranton. Photo by Bob Urban The property is listed as a Keystone Opportunity Zone (KOZ) by Harrisburg which will offer tax benefits to new occupants. “We feel the building is a jewel of northeast Pennsylvania,” Leitner says. Leitner says a lot of the modernization for the Markle Building did not threaten its “historical integrity” at all. State-of-the-art telecommunications and computer-controlled climate systems were installed, for example, without any destruction and Leitner emphasizes that these are features new occupants will want. Leitner points out that 551 new windows were put in for energy efficiency without changing the aesthetics of the window openings.Also, some infrastructure changes were made, such as the addition of a service elevator and loading dock that were all but invisible from the street, Leitner said. With respect to fire codes, a $650,000 12-story back staircase had to be added to allow a fire escape route, Leitner said. However, the walls are made of 18-inch concrete with steel beam girders which exceed current fire codes, Leitner said. Fire alarms and sprinkler systems were also installed. “Investors or tenants want to see adequate safety features,” Leitner said. After September 11, the emphasis across the United States is on smaller more secure buildings, he said. Some decisions to modernize or restore had to be made as the project progressed, Leitner adds. For example, when the construction team removed the drop ceiling installed in the 1970s, they found a patterned plaster ceiling.They elected to spend the money and time to restore it because of its beauty, he said. Leitner admits that, for the cost of restoring the Markle Building, investors can probably buy a new building in a Hazleton suburb. However, he feels that restoring the Markle Building is in line with a restoration “renaissance” in northeast Pennsylvania.“Its a civic pride issue,” he said. The Markle Building will have mixed uses. It will house a Park Inn and Suites Hotel, a fine dining restaurant, and a deli with plans for other types of occupants. Alex Rogers, executive director of CityVest, the corporation currently marketing the soon-to-be-restored Sterling Hotel in Wilkes-Barre to prospective occupants, points out that the key to restoring a property hinges on what purpose the property will serve. “It’s not a case of ‘build it and they will come,’” Rogers said. At this time, the Sterling’s final redesign is an unknown, says Rogers.“It’s premature at this time to say exactly what has to be done at the Sterling.The specific issues of what will be done to it will present themselves as the development takes place.” If a hotel company is interested in the Sterling Hotel tower, for example, relatively minor redesign is necessary, Rogers said. However, if the decision is to use it for residential or office use, much more redesign will be needed. Rogers emphasizes his objective for the Sterling is to strike a “balance” between historical preservation and modernization. Rogers notes that the Pennsylvania Historical and Museum Commission (PHMC) has guidelines to help restoration of older buildings. PHMC consults with redevelopers to determine what features of a building qualify as “historically contributing” or significant, he says. PHMC can provide “technical assistance” and offers grants and federal tax credits to projects it identifies as preserving “the architectural resources of Pennsylvania,” according to the PHMC Web site. QproQ Engineering, Inc. A structural Engineering Firm Services Projects Bridge Design Building Design Feasibility Studies Value Engineering Forensic Engineering Equipment Support Design Construction Phase Services Athletic Healthcare Government K-12/Universities Commercial/Residential Manufacturing & Industrial Warehousing & Production Providing Architectural, Engineering and Construction Services to Commercial, Institutional, and Industrial Clients in Eastern Pennsylvania. SERVING ALL OF PENNSYLVANIA K.C. Larson Inc. mechanical & electrical contractors PLUMBING PROCESS PIPING ELECTRICAL HEATING VENTILATION AIR CONDITIONING 97 Eck Circle,Williamsport, PA 17701 ENERGY CONSULTING Phone: 570.329.1441, FAX 570.321.5439 SPECIALTY SYSTEMS TOLL FREE: 877.371.1441 www.kclarson.com TURN-KEY PROJECT CAPABILITIES COMMERCIAL & INDUSTRIAL 187 North Main Street, Wilkes Barre, PA • 570-823-9935 www.QproQ.com NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 43 Kuykens Lipson Pavlick Woodruff AMERICAN ADVERTISING FEDERATION Helen Lavelle was unanimously elected governor of District II in the American Advertising Federation (AAF) for a second consecutive term. District II, the premier district of the AAF, is comprised of advertising agencies, media companies and corporate clients from New York, New Jersey, Pennsylvania, Delaware, Maryland and Washington, D.C. She is creative director of Lavelle Murray Advertising, Scranton, which she co-founded nearly 20 years ago. As governor, Lavelle will guide and direct the advertising industry through economic challenges, legislative issues and relevant industry initiatives, while continuing to develop best practices and solutions to major industry challenges. In addition to the National Student Advertising Competition, Lavelle has championed achieving diversity in the advertising and marketing industries. Lavelle has been recognized repeatedly for her own creative excellence, contributing to her Scranton-based agency receiving countless ADDY awards, communication arts awards, and industry marketing honors. Lavelle was recently awarded the Northeast Pennsylvania Business Journal’s Outstanding Women in Business Award. AVENTIS PASTEUR Luc Kuykens, M.D., was appointed vice president of regulatory affairs North America for Aventis Pasteur, Swiftwater. He is also responsible for optimizing regulatory affairs efforts globally. He serves as the key point person in communications with the Food and Drug Administration. He also coordinates the activities of the many departments involved in the submission of Investigational New Drug Applications/Biologics License Applications and ongoing submissions to those files. Previously, Kuykens served as director, worldwide regulatory affairs, vaccines & biologicals with Merck and previously as director, regulatory affairs-Europe. His career also includes increasing roles of responsibility in the medical and public health fields in Africa and the Caribbean. He has authored and co-authored a number of articles and papers in industry publications, including the American Journal of Tropical Medicine and Hygiene and the Leprosy Review. Aventis Pasteur Inc. is a subsidiary of Aventis Pasteur SA. It provides the broadest range of human vaccines and biologicals commercially available from any single U.S. vaccine company and is a leading supplier of vaccines to protect against influenza, diphtheria, tetanus, pertussis, polio, Japanese encephalitis, yellow fever, Haemophilus influenzae type b disease, meningitis, rabies, and typhoid fever. BARRY ISETT & ASSOCIATES The northeastern Pennsylvania office of the full service engineering and surveying firm, Barry Isett & Associates (BIA), has relocated to in the Broad Street Business Exchange, Suite 114, 100 West Broad Street, Hazleton. Gregg Pavlick, who has been with the company since 1998, was named project manager to develop and oversee projects throughout northeast Pennsylvania. Vice president Terry DeGroot, PE is the principal in charge of the Hazleton office. BRUSH VALLEY CHAMBER OF COMMERCE Sandra Hutchinson was named CEO of the Brush Valley Regional Chamber of Commerce. She has been with the chamber since 1998. In her new position, she makes plans to keep relationships healthy with government officials at all levels by continuing the current agenda and encouraging a more effective coalition to address problems that affect the businesses in the region and continue her active roll on all of the committees motivating the volunteers towards the goals of this chamber. The Brush Valley Regional Chamber of Commerce serves Shamokin, Coal Township, Kulpmont, Mount Carmel, Ralpho Township, Elysburg, Trevorton, and Paxinos. Woelkers Killeen Arthur Bartoletti Gorman FOCUS CENTRAL PENNSYLVANIA The directors and board of trustees of Focus Central Pennsylvania welcomed their new president, Kate Fairweather. Since 1999, she has been associated with Lafarge Road Marking in Montgomery, most recently as sales manager for the New Parts, Service and Repair department. Focus Central Pennsylvania serves as a regional economic development marketing alliance dedicated to promoting Central Pennsylvania as the premier place for new business investment and the creation of family-sustaining jobs.Focus Central Pennsylvania members include the Clinton County Economic Partnership, Danville Area Chamber of Commerce, Mifflin County Industrial Development Corporation, Susquehanna Industrial Development Corporation, Williamsport/Lycoming Chamber of Commerce, PPL Electric Utilities, and SEDA-COG. GRANGE NATIONAL BANK Thomas A. McCullough, president and CEO of Grange National Bank, Tunkhannock, announced the promotion of Joseph I. Killeen from vice president to senior vice president. Grange National Bank operates 12 full-service banking offices in five counties. LANDMARK COMMUNITY BANK Paul C. Woelkers was named to the board of directors of Landmark Community Bank, headquar tered in Pittston. He is president of Lackawanna Mobile X-ray and US Mobile Health Ser vices Inc., Dunmore, and vice president of Carolina Diagnostic Ser vices Inc., Piedmont, SC. He currently ser ves on the following boards: Nor theastern PA Long Term Care Association, Ser ving Seniors of Lackawanna County and Lackawanna County Drug and Alcohol Treatment Ser vices and is an annual host for a day at St. Francis of Assisi Kitchen, Scranton. LUZERNE NATIONAL BANK Luzerne National Bank, Luzerne, announced the following appointments: Denise S. Bartoletti was named chief credit officer and will assist in establishing Luzerne National Bank’s strategic lending goals, objectives and credit policies. Bartoletti has been active in the banking industry since 1986 and was one of Luzerne National’s commercial loan officers. Michael J. Bibak was named chief lending officer and will be responsible for lending functions of Luzerne National Bank. He will also lead the bank’s business development function. Bibak has been involved in banking for 16 years. Scott Nogles was named chief financial officer and became a member of senior management. He will be responsible for the financial leadership of Luzerne National Bank and will be responsible for cash management functions, financial reporting and new product analysis. Nogles has been active in banking and finance for 10 years with several community banks and is also a certified public accountant. MCCORMACK MORTGAGE SERVICES INC. Walter Sarafinko joined the mortgage services team of McCormack Mortgage Services Inc., Clarks Summit. He is responsible for new business development, sales management, and training of a team of mortgage originators. Sarafinko brings over 17 years of banking experience to this position, most recently serving as vice president and Community Banking Division manager for a local financial institution. He is on the board of directors of the Greater Scranton Chamber of Commerce and serves on the Ambassadors Committee. METZ & ASSOCIATES LTD. James Dickson was promoted to divisional vice president of Metz and Associates Ltd. His most recent position with Metz and Associates was that of eastern regional vice president. In his new position, Dickson will assume responsibility for all col- 44 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Bibak Prebich Nogles Fertig lege/university and business dining operations at Metz and Associates. Dickson is a 30-year veteran of the foodservice industry. His experience is extensive and includes serving as vice president of educational services for Sodexho-Marriott Corporation, resident district manager at the Wood Company, senior food service director at ARA Services and district manager at Custom Management Corporation. Kathy Gonzalez assumed the position of divisional director for healthcare services at Metz and Associates Ltd., where she focuses her talents and energy on dining management matters in the healthcare industry. Her previous position with Metz and Associates was the director of corporate nutrition services. She also remains involved in overseeing Metz and Associates’ team of dietitians and in developing company-wide nutritional education programs. She is a registered dietician with over 20 years of experience. Gonzalez previously held positions as consultant for Home Health Services and corporate dietitian for Emery Medical Management Company both located in Pittsburgh. Toby Horner was named divisional director for school dining services where he is responsible for kindergarten through grade 12 dining operations. His previous position at Metz and Associates was district manager, where he serviced accounts including healthcare and business and industry as well as school districts. He has 26 years of experience in the food service industry. MICHAEL BAXTER & ASSOCIATES John H. Davis joined the staff of Michael Baxter and Associates Commercial Real Estate, Tannersville, as a commercial specialist. His background is in marketing and customer service. PARENTE RANDOLPH PC Jeffrey P. Lipson joined Parente Randolph PC as chief information officer. Lipson is responsible for modernizing information technology within the organization, increasing ser vices for the staff and leading various information technology initiatives. He brings over 10 years of management experience in information technology to the firm and has extensive experience in small to mid-sized entrepreneurial organizations, most recently with Shepherd Technologies. Richard B. Woodruff II joined Parente Randolph as human resources manager. He is responsible for employee relations, compensation and benefits, staffing and recruiting and human resources administration. Woodruff has more than five years of progressive human resources experience and over 10 years of business experience. As one of only two human resource professionals retained by Ber telsmann of For t Washington during its corporate acquisition of CDNOW, Woodruff directed a full range of divisional and corporate human resources activities and programs for a 100-person technology client group. He provided consultation to executives, senior management, legal and human resource depar tments in many locations throughout the United States. J. Robert Arthur, CPA, joined Parente Randolph and will ser ve as its director of international ser vices. A senior level tax executive, Ar thur brings a diversified background and significant experience and exper tise in global tax planning and analysis. In this position Ar thur will help companies establish efficient corporate structures, navigate the U.S. tax anti-deferral subpar t F rules, improve foreign tax credit utilization, enhance tax savings on qualifying expor t sales, reduce foreign taxes, determine whether they have permanent establishments and identify their withholding tax obligations. Ar thur was a senior manager in practice at KPMG LLP prior to joining Parente. PENNSTAR BANK James T. Gorman joined Pennstar Bank, Scranton, as senior vice president and regional Dickson Sitoski Davis Kaczmarek lending manager for Luzerne County. He plays a leadership role in Luzerne County and works with the local business development board to increase market penetration and direct the daily commercial banking activities within the region. Gorman brings over 20 years experience in lending to Pennstar Bank including corporate investment banking, capital markets and merger and acquisition financing. Scott P. Prebich was promoted to community banking officer in Pennstar Bank’s small business lending department. He is responsible for developing and servicing a portfolio of small business loans, assisting the branch network with developing new business and servicing the bank’s existing small business loan customers. He most recently served as a loan analyst in the credit administration area prior to his promotion. PHASEONE Josie Fertig joined PhaseOne, Sunbury, as a graphic designer. She formerly was employed at Power/Warner Communications Group Inc, in Winchester, Va. Her responsibilities include creative design and electronic layout of documents and imagery/illustration creation and manipulation. PNC BANK Elizabeth K. Sitoski was promoted to vice president at PNC Bank, Northeast PA. Sitoski is the sector sales manager for the Hazleton-Mountain sector of the RCB and is based out of the Hazleton Broad Street office. She is responsible for the management of the sales activities of the four Hazleton offices, Freeland, Conyngham and Blakeslee offices. She joined the bank as a teller in the Hazleton Broad Street office in 1979, advanced to head teller in 1982, where she served until entering the management training program in 1992. TOBYHANNA ARMY DEPOT Frank Kaczmarek is director of the Systems Integration Directorate at Tobyhanna Army Depot. As an industrial operations manager, he is responsible for the fabrication and systems integration in support of the depot mission. Kaczmarek temporarily served in this position since June 2002. Previously, he was the chief of the directorate’s systems overhaul and fabrication division. He began his depot career in October 1978 as a sheet metal mechanic, earning various promotions over the years. In 1989, he became a sheet metal mechanic supervisor. He received the Army Achievement Medal in 2000 for the scheduling, planning and execution of the fiscal year 2000 mobile depot maintenance (MDM) mission. UNIVERSITY OF SCRANTON University of Scranton President Scott R. Pilarz, S.J., has announced 16 faculty promotions, including tenure decisions, which go into effect at the beginning of the 2003-04 academic year. The following faculty will be promoted to professor effective this fall: Michael O. Mensah, Ph.D., accounting; Daniel S. Townsend, Ph.D., biology; Rose Sebastianelli, Ph.D., operations and information management; Nabil Tamimi, Ph.D.,operations and information management; Sharon Meagher, Ph.D., philosophy; Robert A. Spalletta, Ph.D., physics, and Steven Dougherty, Ph.D., mathematics. The following will be promoted to associate professor and granted tenure beginning in the fall: Scott Bader-Saye, Ph.D., theology; Ann Pang-White, Ph.D., philosophy, and Elizabeth Jacob, Ph.D., counseling/human ser vices. The following will be promoted to associate professor beginning in the fall: Narda Tafuri, M.A., librar y, and Richard Larsen, M.F.A., English. Tenure for the following faculty members will become effective in the fall: Ronald Deitrick, Ph.D., exercise science and spor t; Timothy J. Hobbs, Ph.D., education; Barbara Cozza, Ph.D., education, and Carol L. Reinson, Ph.D., occupational therapy. Economic downturn spawns new business niche Jeannette Hubbard started her Wayne County company, Virtually There Business Solutions (VTBS), after noticing more corporate downsizings and layoffs. In large cities like Chicago, New York and Boston, companies that provide professional secretarial services are commonplace. “Think of VTBS as a confidential member of your staff,” she says. By Robert Curran With the downturn in the economy forcing many employers to downsize or layoff employees, Jeannette M. Hubbard has started a company that she believes will fill important needs. Hubbard is president of Virtually There Business Solutions (VTBS) of Pleasant Mount, in Wayne County, which provides professional secretarial services to com- panies. “I’ve been dabbling with this idea since 1993 and then, at the end of last year, I said ‘this could work, so let me do it,’” she said. Using leading-edge technology,VTBS offers a variety of administrative, mailing, translation and transcription services, along with PowerPoint presentations and word processing that will deliver work assignments to businesses by way of the Internet, e-mail, fax, express mail, diskette, real-time online messaging or any other method. Before starting VTBS in January, Hubbard was an executive assistant for 18 years, including positions at Marian Community Hospital, Carbondale, and the Philanthropic Initiative, Boston, Mass., which assisted companies in reaching philanthropic goals. She said she decided to start VTBS after watching companies downsize and impose layoffs.“I feel I have a niche here,” she said.“It’s just a matter of getting the word out.” Hubbard has a Web site and she said that, because of all the new technology, she can reach prospects anywhere on the globe.“The advantages that come from using my services are great, especially for small businesses,” she said. As part of the decision-making process on whether to start her business, Hubbard went through the necessary market research work and concluded that there was a market for the type of business she wanted to start. She found that large cities, like Chicago, New York and Boston, had these services, but she also found an absence in smaller cities and regions. “Think of VTBS as a confidential member of your staff,” she said.“We’re available whenever you need us and only when you need us.” Her accounts are diverse, and include a healthcare organization, a pharmacy and a bed and breakfast, with each one requiring different services. Her company will make arrangements for travel, cars, meals, hotels and the like for busy executives, along with providing an additional assistant if one is needed to meet schedules. Benefits to clients, she said, are many. Retaining the services of VTBS means no payroll expenses, and no health benefits,vacations or sick days. “There’s no need for computer equipment, no need for additional office space, and there are flexible work hours,” she said.“I work when they need my help.This is important in emergencies. No matter what time a client calls and says,‘I need it done by tomorrow morning,’ I will have it tomorrow morning.” First and foremost, Hubbard said, are her skills, which translate into skilled professionalism. She said when she takes on an assignment, she realizes that it’s a two-way street.“I’m a partner in the success of their business,” she said.“If they stay in business, I stay in business. So it’s a winwin for both of us.” With more people of Hispanic backgrounds moving into northeast Pennsylvania, Hubbard said her company can fill yet more business needs because she reads and writes fluent Spanish.“I can help a number of companies this way,” she said. At the present time, Hubbard does most of her company’s work herself, but she’s looking to VTBS to grow. “If the time comes and, hopefully, it will, I’ll have other qualified people assisting me,” she said. Pway lay the course at Glenmaura the the pros do --- from tee to “A Name You Can Trust With The Integrity You Need” green, you’ll play your own ball at the Call Walter for all your mortgage needs 2003 JUNIOR ACHIEVEMENT GOLF INVITATIONAL • Purchases • Refinance • New Construction • Debt Consolidation at FRIDAY, SEPTEMBER 19 Entry fee of $300 includes greens and cart fees, reception and gala awards dinner. Call today to schedule your consultation & find out why “Our Reputation is Our Most Precious Possession” Hole-in-One Prize • A 2-Year Lease on a Cadillac Escalade Walter Sarafinko Business Development Coordinator 570-586-3634 • Toll Free: 877-640-RATE (7283) E-mail:[email protected] Online @ www.mccormackmortgage.com Additional competition prizes will include: A $10,000 Putting Shoot-Out AND THOUSANDS OF DOLLARS IN CASH PRIZES FOR A Winning Team Shoot-Out Five Closest To The Pins Two Longest Drives Four Winning Teams provided by SM SM Tee times will be pre-determined between 10:30 a.m. and 12:30 p.m. Honorary chairman is Peter J. Danchak Chairmen are Chris Haran and Ken Okrepkie For additional information, please contact Junior Achievement of NEPA 533 Main Street, 2nd Floor, Peckville, PA 18452 Mortgage Services, Inc. Phone: 570-489-9474 Fax: 570-489-9477 E-mail: [email protected] Website: http://nepa.ja.org Sponsored in part by: 933 Northern Blvd., 2nd Flr., Clarks Summit, PA, 18411 LICENSED BY PA DEPT. OF BANKING LICENSE # 4251 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 45 Airport completes ‘Phase I’ of renovation The Wilkes-Barre/Scranton International Airport held a ribbon-cutting ceremony on July 29 for its new parking garage, surface Parking and roadway network. The construction of the new passenger terminal facility and related projects are broken into two phases: Phase I — New parking garage, surface parking and roadway network. Phase II — New terminal building and pedestrian tunnel. This project completes Phase I. Total construction cost of Phase I is approximately $19.5 million.The project includes a parking garage, surface parking lots, roadway network, generator building and toll plaza. The new four-level parking garage is approximately 246,800 square feet. It can serve a total of 640 vehicles on the four levels, and provides “under roof” parking for 480 vehicles.The parking garage is equipped with two elevators and two staircases. When constructed, the new terminal building will be accessed via a pedestrian tunnel from the second level of the parking garage. During construction of Phase II, the current terminal building can be accessed via a bridge on the top level of the parking garage. The new surface parking encompasses four parking areas: one revenue parking area and three nonrevenue parking areas. Total surface parking is for 712 vehicles, and overall parking in both the parking garage and all surface parking is for 1,352, or a 34.5 percent increase in total parking spaces. The one-way loop road serving the terminal has been expanded to encompass all parking facilities within the loop. To achieve this, the approach to the new/relocated terminal building will be re-aligned to provide a more direct approach to the east prior to turning northward to reach the terminal building. When fully completed, the loop road will be two lanes with a four-lane-wide section in front of the new terminal building to accommodate curbside activity. Barry Centini, airport director, said, “We are really excited to provide these new services to our area business and leisure air travelers. With Phase I of our major expansion project complete, we now move forward into Phase II for a new pedestrian tunnel and a new terminal building.” Several firms were engaged to prepare plans and specifications for the work. They were: HNTB Corporation, Alexandria, Va.; Acker Associates Inc., Moscow; Highland Associates Ltd., Clarks Summit; and Michael J. Pasonick, Jr. Inc., Wilkes-Barre. Construction work on the new parking garage was completed by Sordoni Construction Services Inc., Forty Fort. Construction work on all surface parking, the roadway network, the new generator building and the toll plaza was completed by Pikes Creek Site Contractors, Hunlock Creek. Funding for the $8 million parking garage and revenue surface parking lot, as well as the $11.5 million new roadway network and nonrevenue parking lots came from the following: $10.3 million . . . . . . FAA grants $4.275 million . . . . . State grants $4.925 million . . . . . . Lackawanna and Luzerne counties and the airport. Phase II commenced with construction of the pedestrian tunnel last month. Scenes from the renovation of the Scranton/Wilkes-Barre International Airport. Phase I — estimated at $19.5 million — of the project has now concluded. Phase II began with the construction of a pedestrian tunnel. Photos by Bob Urban W W W . T O P L I S T . C O Southern Union locates headquarters in Scranton M Like the Book? Lackawanna Avenue in downtown Scranton was a regionwide joke just over a decade ago. Once the commercial centerpiece of northeastern Pennsylvania, the avenue had fallen into an advanced state of decay and seemed destined to continue falling toward a very hard floor. Now, the avenue seems to be defying gravity. Southern Union Co., parent company of PG Energy and one of the nation’s fastest growing energy distribution companies, announced that it will build a 40,000-square-foot, $10 million headquarters at 415 Lackawanna Ave. In addition to giving the city its only major corporate headquarters, a substantial and handsome new office building, and about 100 high-end jobs, the project could well prove to be an accelerant for more downtown development. Southern Union’s decision also has an important symbolic component. It is an emphatic vote of confidence in the city that will help to further the momentum toward the city government's recovery, and toward overall economic growth. The company's relocation, along with other major projects on Lackawanna Avenue, validates the risky infrastructure and development investments that have been made by the state, federal and local governments over the last 15 years, and the perseverance of downtown businesspeople who have stood by the city. — From the Scranton Times A rendering of Southern Union’s headquarters to be built in downtown Scranton. You’ll LOVE the Software! Only $129.00! Get the Book of Lists 2003 on Disk or Download at: http://npbj.clickdata.com or call 570-207-9001 ©2001 ClickData.com, Inc. Price and availability subject to change. C A L L 5 7 0 - 2 0 7 - 9 46 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 0 0 1 N O W ! Dairy plant’s business model: buy local By Marianne Tucker Puhalla It has been known for years as the place to find the yummiest of ice creams and the sweetest of milk.Anyone with any love for dairy products is sure to know the name of Hillside Farms, in Trucksville, Luzerne County. Owned by the Conyngham family, Hillside Farms has been in the business of producing milk and milk products in the Back Mountain for the past 100 years. Today, the company, which opened its dairy store in 1977, no longer has a herd of its own to milk, but is teaming up with Nescopeck dairy farmer Gary Rinehimer and other local dairy farmers within the Luzerne County agricultural community, to use only locally-produced milk in its products. According to family member, and store manager,Will Conyngham, Hillside processes about 1,500 gallons of milk per day, all of which comes from within a 50-mile radius. “We had a processing plant that was being under-utilized so we decided to refocus our efforts on processing. Even though we don’t have many cows anymore, we do buy our milk locally, process our milk locally and sell our milk locally.” Under the new business plan, the farm receives milk from a number of neighboring dairy farms, paying a premium to contracted producers. “It is important to me to know that the product I am selling comes from local farms, small farms with high quality control,” Conyngham says. Conyngham says payment is based on the dairy store’s Class I fluid milk utilization, which at Hillside is near 90 percent. Larger milk processors average only 40 percent use for Class I purposes. Class I represents the highest grade of milk and results in the best price paid to the farmer. Hillside collects an average of 25,000 pounds of milk per week from the Rinehimer farm. Conyngham says he believes in support- Manufacturers’ Association fetes area firms Offset Paperback, Inter Metro, Schott earn awards Darlene Robbins, president of the Manufacturers’Association of Mid-Eastern Pennsylvania (MAMP), has announced the 2002 “Manufacturing Excellence” awards. The award winners will be honored on Sept. 9, following a tour of Offset Paperback Manufacturers, Dallas, one of the winners. Dinner will follow at the East Mountain Inn,Wilkes-Barre. Offset Paperback is one of the largest manufacturers of mass market paperback books in the world and has a state-of-theart manufacturing facility. In addition to Offset Paperback, this year’s winners are Inter Metro Industries, Wilkes-Barre; and Schott Glass Technologies Inc. of Duryea. The awards are presented for outstanding achievement by the honorees in the manufacturing industry. The tour and dinner are open to the manufacturing community by reservation only. Early reservations are urged. Additional information and reservations may be made by calling the MAMP office at (570) 622-0992. Lobar lands several school building contracts Lobar Inc., the largest school builder in Pennsylvania, announced last month that it has won major contracts from school districts in Monroe and Tioga counties. Those contracts, together with a municipal award in Dauphin County, have a total value of approximately $37 million. The award in Monroe County continues Lobar Inc.’s expansion into eastern Pennsylvania, which began earlier this year. Stroudsburg Area School District awarded an $8.715 million contract for a new middle school. The 264,000-square-foot building will accommodate a three-story classroom wing, gymnasium, auditorium, auxiliary gym and administrative offices. The project architect is an HLM Design. Other contracts: Client: Wellsboro Area School District, Tioga County. Project description: New three-story, 126,000-square-foot high school and partial demolition of existing school. Contract amount: $13,099,500 Architect: McKissick Associates PC Lobar Inc. (www.lobar.com) specializes in work for the public sector, at the local, state and federal levels. Based in Dillsburg, Lobar Inc. also operates an office in Williamsport. Lobar Inc. is independent of Lobar Associates. Lobar Inc. recently was named “General Contractor of the Year” by the American Subcontractors Association of Central Pennsylvania Inc. Lobar Inc. also recently achieved ISO 9001:2000 quality certification, joining a small number of general contractors across the United States that have earned the distinction. ing the local farm community and knows that he is providing the freshest milk possible.“Large milk processing plants might get their milk from as far away as 200 miles — there’s nothing local about it.” The new system is a sign of the changing times in a very tough, competitive business.“You need to know when you have the volume to survive independently,” says Conyngham.“The common wisdom it that we would need to have 300 milking head for the dairy farm to produce enough milk to stay self-sufficient in the current business market. We have neither the room nor manpower to carry that out.” At the height of Hillside Farms milk production, about 500 gallons of milk was produced daily.At that time, there were almost 300 on-farm dairy plants/stores throughout Pennsylvania.Today, less than three dozen remain. Pecora Brothers Dairy, in Drums, operates the only other fluid milk processing plant in Luzerne County. Hillside remains the only local dairy to sell milk in glass bottles. “About one third of our business is wholesale, with contracts to numerous local schools and two state prisons,” Conyngham reports.“The vast majority of our sales occurs on site, at the dairy in Trucksville. It is there where our customers can come to buy our locally produced dairy products, honey, flowers and seasonally available local produce.” PEL releases tax analyses The Pennsylvania Economy League (PEL) released its overview summarizing the city component of its annual analyses of real estate tax levies, tax rates and assessed valuations in Berks, Blair, Cambria, Cumberland, Dauphin, Lackawanna, Lancaster, Lehigh, Luzerne, Lycoming, Northampton and York. ■ Gross real estate tax levies increased in 11 of the 16 cities in the 12-county area between 2002 and 2003; during the past five years, levies rose in nine of these cities. ■ The largest increase in real estate tax levy since last year was recorded in Allentown.The largest of the five decreases during this period occurred in York. ■ For the five-year period, the largest absolute increase in tax levies were recorded in Allentown and Lancaster.The largest proportionate increases occurred in Lancaster and York.The largest of the seven absolute decreases between 1998 and 2003 were in Altoona and Reading; the largest proportionate decreases were experienced in Altoona and Wilkes-Barre. ■ Real estate tax rates increased in four cities between 2002 and 2003; decreased in one; and were unchanged in 11.The largest increases were in Allentown, Bethlehem and Lancaster.York decreased. ■ For the five-year period, real estate tax rates increased in seven cities; de-creased in three; and remained unchanged in six: Easton, Hazleton, Johnstown, Nanticoke, Pittston and Reading. Proportionally, the largest millage increases were in Lancaster and York.The millage decreases between 1998 and 2003 occurred in Altoona, Harrisburg and Wilkes-Barre. Harrisburg’s decrease was primarily the result of a county-wide re-assessment in 2002. Hinman Howard & Kattell, LLP Attorneys At Law 116 North Washington Avenue, Suite 1E Scranton, Pennsylvania 18503 • (570) 558-5931 www.hhk.com James T. Mulligan, Jr., LLP Joins Hinman, Howard & Kattell, LLP As Special Counsel And Concentrates His Practice In The Areas Of Environmental Law, Real Estate And Commercial Transactions Attorney Mulligan has nearly 10 years of experience in Environmental Law and other related commercial matters. His practice includes matters relating to site contamination and cleanup, Brownfield development, environmental aspects of real estate development and lender liability. He also represents and advises regulated facilities with regard to permitting and compliance issues. Attorney Mulligan has counseled numerous townships and municipalities throughout the Commonwealth of Pennsylvania in connection with other environmental problems including remediation of scrap tires. Prior to his affiliation with Hinman, Howard & Kattell, Attorney Mulligan managed a successful private practice in Northeastern Pennsylvania. Attorney Mulligan served as Assistant District Attorney for Lackawanna County from 1988 through 1990. He served as Solicitor for the Riverside School District from 1990 through 1994 and served as General Counsel and Solicitor for the City of Scranton in 2000 and 2001. James T. Mulligan, Jr. graduated from Pennsylvania State University with a B.S. in Criminal Justice in 1980. He attended Villanova University for a Masters in Public Administration. He obtained his Juris Doctorate in 1987 from Antioch School of Law in Washington, D.C. He is on the Board of Trustees of The Northeast Theatre and is an active member of many civic organizations. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 47 Do Not Call Continued from page one since the Pennsylvania list went into effect,Telemarketing Resources Inc. is here to stay. “We’re the last company left… we list went into effect, many states, includemploy over 30 people.That tells you how ing Pennsylvania, developed statewide Do we do business, the relationships we have Not Call lists with the same purpose: to with the companies we do work for and keep unwanted telemarketers from callthe integrity of our workers. Nobody is losing consumers at home. Millions of ing his job here.The owner is working Pennsylvanians signed up, jamming the very hard to make sure that everyone here toll-free phone number and Internet Web keeps his job,” says Brannon. site in the first few days. So why is it that so many consumers hate One Pennsylvania company that uses being called by telemarketers? The answer, telemarketing regularly is Commonwealth according to an area psychology professor, Telephone Enterprises in Luzerne County. is rather simple. While telemarketing is a component of “These calls are an invasion of privacy. their marketing strategy, the company They are totally uninvited and are a nuialready had many of the policies outlined sance.They typically interrupt family time in the national list as its own procedures. and important conversations, usually over Depending on the marketing campaign, dinner, because that CTE contacts cusis the time of day tomers based on when most telemargeography, if the keters make their hile virtually all of consumers are curcalls,” says Charles rent clients, or if the telemarketing LaJeunesse, Ph.D., they are looking to professor of psyfirms in the Scranton and add new clients. chology at College “The list has had a Wilkes-Barre areas have shut Misericordia in modest, if not Dallas.“In the early down or moved since the minor, impact. Our days it was chronic, company policy and Pennsylvania list went into with people calling customer approach constantly and were already aligned effect, Telemarketing many of the prodwith the policies of ucts were distasteResources Inc. is here to stay. the Do Not Call list ful.That’s where for some time.We the negative image even have our own list. Our approach has first started for the telemarketing industry.” been, and is today, very much in line with After a while, according to LaJeunesse, the FTC’s list.We had some administrative consumers started fighting back, and and tracking issues, but addressed those,” telephone companies began to help, says Joe Mozden, senior vice president of offering services such as Caller ID, so sales and marketing for Commonwealth homeowners could screen a call before Telephone Enterprises. answering.Today’s technology, such as a Maria Brannon, operations manager of new program offered by CTE, is much Telemarketing Resources Inc. of Scranton, more sophisticated. says these new lists have only made her An alternative to signing up for statewide staff more efficient with their telemarketand national lists,“Block ’em” prevents ing efforts.“We do not contact people who unwanted, unidentified telemarketing calls do not want to be contacted.We do work from getting through to a consumer’s all over the state; for lawyers in home phone.“If a telemarketer calls your Philadelphia and several newspapers, even house, and you have this service, and it reccompanies in California, but we have strict ognizes the number as being a telemarguidelines,” she says. keter, it automatically adds your phone One problem with the list, according to number to that company’s personal ‘do not Brannon, is that people think they are on call’ list,” explains Mozden. the list and they aren’t.“The system is automated, so wrong area codes are associated with wrong prefixes; when someone thinks they are on the Do Not Call As much as people complain about list, and we call them, we have to listen advertising — all the junk mail, spam and to them explain that they are on the list. telemarketing calls — they really do When they are that adamant about not want to be in the marketing loop, says wanting to be called, we explain to them Michael R. Solomon, in his book, how to correctly get their numbers on “Conquering Consumerspace: Marketing these lists,” says Brannon. Strategies for a Branded World.” While virtually all of the telemarket(www.amanet.org/books/catalog). ing firms in the Scranton and WilkesRather than “passive pawns at the Barre areas have shut down or moved receiving end of a sales pitch, consumers are control freaks,” says Solomon. “We enjoy the feeling of power that comes from having input into what we do, see and buy — even if it just means The median population of the towns and getting to vote on a candy flavor,” as cities where outbound call centers are located: Lifesavers demonstrated several years ago 26,532. when the company threatened to elimi Twelve percent of the towns and cities with call centers also are communities that have been nate the pineapple flavor in its popular designated by the federal government as labor candy and more than 400,000 people ralsurplus areas or empowerment or enterprise lied to “save” it. areas qualifying for federal benefits and incentives to keep businesses and their employees in place. Studies show a correlation between Another view of telemarketers is their national good health and feeling in control, he mean annual wage of $20,285 compared to the says.“We want to be involved, we want to national mean annual wage of other sales professionals, which is $31,535, and the national mean know if we’re having an impact and we wage of all workers, which is $37,005.5 hunger for the validation that comes from Source: The Direct Marketing Association, making the ‘correct selections.’” www.the-dma.org W Customers talk back The Faces and Places of Telemarketing 48 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Fast Facts — Telemarketing and Blast Fax Statistics — Direct Mail and Spam FCC Changes Fax Rule Again Regarding Established Business Relationships Weight of paper in U.S. municipal solid waste in 1980: 55 million tons The Federal Communications Commission (FCC) last month announced that it was extending the Aug. 25, 2003, deadline for companies to get their customers’ prior written permission before sending them commercial faxes until Jan. 1, 2005. The FCC’s August 18 order “extend[s], until Jan. 1, 2005, the effective date of our determination that an established business relationship will no longer be sufficient to show that an individual or business has given express permission to receive unsolicited facsimile advertisements.” Previously, the FCC — as part of its recently announced changes to the Telephone Consumer Protection Act of 1991 (TCPA) – had changed TCPA rules so that all commercial faxes were prohibited unless the sender had the recipient’s prior written permission to send the fax — even if the sender was faxing a consumer or business with whom it had an existing business relationship — beginning on August 25. For the FCC’s order, go to hraunfoss.fcc.gov/edocs_public/attachmatch/FCC -03-208A1.doc. New FCC rule regarding voice mail The Direct Marketing Association (The DMA) is giving notice to members of a new Federal Communications Commission (FCC) rule that impacts marketers who employ a “live” operator to leave either a personal or a pre-recorded commercial message on prospective customers’ voicemail when the person is unavailable. The Association is urging members affected by the change to contact FCC staff immediately. The FCC’s recent amendments to the Telephone Consumer Protection Act of 1991, which were announced on June 26 and took effect on Aug. 25, 2003, included a little-noticed provision that prohibits for-profit companies from leaving commercial messages on non-customers’ voicemail. In particular, the Commission’s rules now forbid almost all uses of prerecorded messages — even to reach people who are not on the Federal Trade Commission’s (FTC) National Do Not Call Registry, which opened its doors on June 27. Moreover, the new FCC rule forbids the use of a prerecorded message even when the message does not constitute “unsolicited advertising.” For example, the most significant change from the FCC’s previous rules is that prerecorded messages that invite customers to call back in order to meet with a potential vendor of goods, property, or services are now banned. Consequently, any entity – such as insurance companies, mortgage companies, resort timeshare providers, home improvement contractors, personal health and self-improvement – that previously used prerecorded messages in an effort to generate interest from prospective customers can no longer do so unless it fits within one of the five narrow exceptions listed below: 1. Made for emergency purposes; 2. Not made for a commercial purpose; 3. Made for a commercial purpose but does nothing more than leave a name and call-back number; 4. Made to a person with whom the caller has an existing, established business relationship; or 5. Made by or on behalf of a tax-exempt organization. Source: The Direct Marketing Association, www.the-dma.org Weight of paper in U.S. municipal solid waste in 1999: 87.5 million tons Number of trees it takes to make a ton of paper: 24 Weight of catalogs and other direct mailings in the U.S. municipal solid waste stream in 1999: 5.6 million tons Rate at which bulk mail was recycled in 1999: 22 percent Number of garbage trucks it would take to haul away all the unrecycled junk mail in the U.S. to landfills and incinerators each year: 340,000 Typical weight of 4 elephants: 17.8 tons Amount of bulk mail delivered annually by each of the U.S. Postal Service's 293,000 letter carriers: 17.8 tons Amount of time the average American spends opening bulk mail over the course of his or her life: 8 months Percentage of bulk mail that is thrown away unopened: 44 percent Money spent by U.S. companies on direct mail in 1993: $27.3 billion Money spent by U.S. companies on direct mail in 1998: $39.3 billion Tax dollars spent to dispose of junk mail: $320 million Pieces of bulk mail sent by U.S. nonprofits in one year: 12 billion Amount donated to nonprofits in response to those bulk mailings: $50 billion Source: www.newdream.org SPAM STATISTICS In 1999, the average consumer received 40 pieces of spam. By 2005, Jupiter estimates, the total is likely to soar to 2000. America Online estimates that spam already accounts for more than 30 percent of e-mail to its members – as many as 24 million messages a day. Seventy-four percent of customers believe that their ISPs should be responsible for fixing spam problems. Seven percent of ISP churn was directly attributed to spam. Thir ty-six percent of e-mail users would switch ISPs in order to reduce the flow of spam they received. Twenty-four percent of users would be willing to pay an incremental for spam blocking. AOL alone receives 250,000 spam-related complaints every day. Nearly $2 of each customer's monthly bill can be attributed to electronic junk mail and other forms of spam. Source: www.anti-spam-software.com information and target us. I don’t think most of us mind much of that.” But debate continues on where public knowledge ends and privacy begins. Privacy advocates gather steam to regulate the gathering and sale of information to curb the onslaught of spammers and other uninvited solicitations. An overwhelming response to signups for the “Do-Not-Call” list reveals the public’s cry for relief from unwanted telemarketing solicitations. According to Forrester Research, 90 percent of consumers want the right to control how their personal information is used. “If you have a magazine subscription, there is a good chance somebody is buying your name,” says Gaetan Giannini, president of G2 Integrated Marketing with offices in Laurys Station and Stroudsburg.“It’s a good way to target market. If you get Golf Times, it’s a good chance you golf.Any time you fill out an application or a survey and don’t specifically say this information is confidential and cannot be reused, you have in effect given the OK to do it.” Privacy concerns are a gray area. The question becomes: where does use become abuse? While marketers provide helpful information, sometimes their methods can be intrusive or annoying. “I value my leisure time at home and often get a barrage of phone calls from telemarketers,” says Dean Hosier, marketing manager for PenTeleData, an Internet service provider in Palmerton, Carbon County.“However, I’ve accepted some of these offers from various companies. These personal forms of communication with the consumer have been proven to be very effective forms of advertising.” Effective or not, statistics show an estimated 74 percent of Americans support a “do-not-spam” registry. Advocates know enforcement may be elusive, so the burden rests on each of us to take steps to ensure our own privacy. “In many cases you have reputable companies giving the consumer an ‘opt out’ option on receiving future e-mail,” says Hosier.“In other cases, you have compa- nies or individuals using mass mailing tactics whereby when an individual opts out, they have now actually given away their real e-mail address, adding to the consumer’s current problem.” In addition, viruses and worms can be used to pull arbitrary information from your computer, and spammers and hackers use such tools to harvest email addresses. E-mail addresses can also be pulled from newsgroup posts, so it pays to weigh your options carefully. “As in most things, there is a trade-off regarding how much a person values his privacy and how convenient he wants his online experience,” says Chris Kruslicky, information security specialist for PenTeleData.“Those who choose convenience will have their online actions noted by marketing firms, such as the famous case of DoubleClick, and more recently via any number of Spyware products’ ‘phone-home’ features.Those who choose not to have their online activities recorded will need to be diligent about things like Internet/browser settings, and forego the special offers and online contests that require personally identifiable information.” Another controversy in the privacy battle includes the use of ‘cookies’ — and they’re not chocolate chip. “Generally speaking, what the cookies are telling a Web site is where you have been,” Ed Redding, general manager of R&D Communications, Pine Grove, Schuylkill County.“A cookie remains from the site you previously visited. So the next site essentially gets a view of your browsing and shopping habits and, in some cases — depending on the sophistication for that particular Web site — the site can serve up pages of information that are sensitive to the places where you’ve been.” Privacy advocates consider cookies spying, but marketers disagree.“What merchants and marketers are trying to do is nothing more than a good retail clerk would in the store: get a sense of what you’re looking for,” says Redding.“It could be painted as being insidious but it’s really (what) people have always done in business to answer customers’ needs.” But debate continues. “I think that all legitimate business people have no interest in, and there is no TELEMARKETING STATISTICS Alone continued from page one State ALASKA ALABAMA ARKANSAS ARIZONA CALIFORNIA COLORADO CONNECTICUT WASHINGTON, DC DELAWARE FLORIDA GEORGIA HAWAII IOWA IDAHO ILLINOIS INDIANA KANSAS KENTUCKY LOUISIANA MASSACHUSETTS MARYLAND MAINE MICHIGAN MINNESOTA MISSOURI MISSISSIPPI MONTANA NO CAROLINA NORTH DAKOTA NEBRASKA NEW HAMPSHIRE NEW JERSEY NEW MEXICO NEVADA NEW YORK OHIO OKLAHOMA OREGON PENNSYLVANIA PUERTO RICO RHODE ISLAND SOUTH CAROLINA SOUTH DAKOTA TENNESSEE TEXAS UTAH VIRGINIA VERMONT WASHINGTON WISCONSIN WEST VIRGINIA WYOMING 2000 Census Population 634,892 4,454,356 2,692,090 5,307,331 34,501,130 4,417,714 3,425,074 571,822 796,165 16,396,515 8,383,915 1,224,398 2,923,179 1,321,006 12,482,301 6,114,745 2,694,641 4,065,556 4,465,430 6,379,304 5,375,156 1,286,670 9,990,817 4,972,294 5,629,707 2,858,029 904,433 8,186,268 634,448 1,713,235 1,259,181 8,484,431 1,829,146 2,106,074 19,011,378 11,373,541 3,460,097 3,472,867 12,287,150 1,058,920 4,063,011 756,600 5,740,021 21,325,018 2,269,789 7,187,734 613,090 5,987,973 5,401,906 1,801,916 494,423 US Department of 2000 Labor Estimate of the Census Number of People Working Employed in the Pop. State in TeleNon Agri. marketing 100,500 350 1,900,200 3,260 1,156,800 5,040 2,239,600 12,870 14,658,700 40,040 2,198,700 13,340 1,679,300 3,390 402,372 2,330 417,400 260 7,193,600 44,850 3,893,900 11,140 551,000 790 1,463,100 10,880 567,300 2,590 5,931,400 17,060 2,896,100 10,220 1,363,800 3,170 1,827,400 3,950 1,929,700 6,940 3,294,300 10,330 2,454,000 12,170 611,700 4,190 4,543,100 9,900 2,659,900 9,080 2,687,600 10,300 1,125,400 1,210 393,600 580 3,879,400 6,680 331,500 2,950 912,400 7,000 627,100 1,700 4,007,100 11,030 760,500 3,330 1,073,000 2,110 8,538,000 26,710 5,516,100 14,140 1,519,800 9,100 1,581,200 4,580 5,647,400 21,370 1,390 484,800 1,880 1,829,200 4,260 380,800 1,190 2,706,000 7,930 9,559,500 48,570 1,067,000 4,020 3,504,100 10,820 296,600 320 2,650,500 6,250 2,827,500 8,970 730,900 5,340 249,400 1,250 Percent of the Working Population Engaged in Outbound Telemarketing for a fee 0.35% 0.17% 0.44% 0.57% 0.27% 0.61% 0.20% 0.58% 0.06% 0.62% 0.29% 0.14% 0.74% 0.46% 0.29% 0.35% 0.23% 0.22% 0.36% 0.31% 0.50% 0.68% 0.22% 0.34% 0.38% 0.11% 0.15% 0.17% 0.89% 0.77% 0.27% 0.28% 0.44% 0.20% 0.31% 0.26% 0.60% 0.29% 0.38% 0.39% 0.23% 0.31% 0.29% 0.51% 0.38% 0.31% 0.11% 0.24% 0.32% 0.73% 0.50% Number Unique Cities & Town which Telemk. 3 14 15 15 148 28 14 1 4 80 30 1 57 6 90 25 17 16 7 43 31 26 46 28 32 10 12 29 19 29 10 80 9 6 68 56 16 15 83 1 6 12 10 19 75 15 33 6 24 25 14 3 Source: Direct Marketing Association, The Faces and Places of Outbound Teleservices in the United States economic justification for, any invasion of privacy,” says Redding.“In and of itself, the recording via cookies is not very important and certainly no invasion of privacy. But a person who has become sensitized to the issue, or who may be a recent victim of identity theft, may find that an egregious invasion. Privacy is in the eye of the beholder.” The Small Business Administration (www.sba.gov/ privacy.html) provides a comprehensive model privacy policy. Its final words provide useful insight for consumers and business alike:“Be informed. You are the best qualified to protect your own privacy.” Advertising’s extreme sport: ‘off the wall’ and ‘in your face’ ad placement By Stephanie Phillips Taggart They are everywhere you look — marketing messages. Today, they are even popping up where you least expect it — the bottom of golf holes, supermarket floors, cell phones, taxi cab roofs, fresh fruit, on the boxer shorts of a prize fighter and even on urinals. Messages displayed on novel mediums are called “off the wall” or nontraditional forms of advertising. This type of marketing is gaining popularity, and many advertisers say it helps them stand out among the advertising glut of traditional media. But just how effective is nontraditional advertising, and is it worthwhile for advertisers to pursue? Michael P. Beiter, general manager of Lamar Advertising, an outdoor advertising company,Williamsport, says that although off the wall advertising is effective, it is not for every advertiser. “Often times national advertisers or local large advertisers are the ones to use this type of marketing, because it won’t be effective unless a brand has been previously established. Don’t put the cart before the horse, so to speak. You want people to have familiarity with your product to avoid confusion,” he said.“When you are doing something off the wall, it is good to add on to the traditional media people use. Start with newspaper, television, outdoor, radio and direct mail advertising and then, if there is any money left over, you can use nontraditional media.” Fred Bertino, president and chief creative officer of Hill, Holliday, Connors, Cosmopulos Inc., a Boston-based advertising firm stated in an Inc. magazine article entitled “Upstarts: Nontraditional Ads,” that nontraditional advertising should be used as a supplement to traditional advertising, because the smartest brand-building campaigns express one core idea across many points of consumer contact. However, if “out of the box” marketing is used as a supplement, the additional cost in these nontraditional mediums will be staggering, suggests Bertino, pointing out that advertisers who use “off the wall” advertising usually have excessive marketing budgets. Dennis Sullivan, president, Nextt Media, a full service advertising agency located in Williamsport said that although the cost of nontraditional advertising varies from campaign to campaign, creative mediums don’t necessarily mean big dollars. “You can still be creative and innovative and stand out using a less expensive avenue than traditional forms of advertising,” he said. No matter how expensive or inexpensive this type of “off the wall” marketing can be, spending any amount of money may be worthwhile if it works. “Nontraditional advertising is here to stay, because it works. If it didn’t work, no one would spend the money to place the ad. As long as it works and has an influence, marketers will be placing their mes- Advertisers are coming up with ever-more inventive ways to reach the consumer. Photo by Bob Urban Off the wall continues on next page NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 49 Off the wall continued from previous page sage in unique places. If someone asked me to place their name on an elephant, I’d tell them,‘I’ll quote you a price for that,’” said Jonathan Balester, owner/sales consultant Abba Advertising Products, Shavertown, who said he made his company’s slogan “We will put your name on anything,” because he saw the nontraditional trend “catching on.” An elephant bearing a marketing message may very well grab your attention, but something a little simpler may be just as effective. When Beiter, visited the First Union Center in Philadelphia, he saw something that caught his attention — something that stood out from the many marketing messages at the center — an advertisement on the stadium’s turnstiles. “I thought the placement was not only effective, but interesting. It blows my mind “Off the wall” advertising is designed to break through the advertising bombardment. “The more you can put the message in front of people, the more likely they are to recognize your product.” — Dave Schwartz, Ideaworks Marketing and Design, Plymouth that it would go that far,” he said.“Another nontraditional ad that I recently saw was right here in Williamsport. I was at the Weis Market the other day and saw photographic ads on the floor. They caught my eye and were very well done.” Supermarket floors and turnstiles may seem acceptable places to advertise, but Sullivan said some places that advertisers market may be questionable. “In the early 90s, I was in New York City, and I saw an advertisement on urinal strainers. Being in the business, I really appreciate creativity in getting the message across, but unfortunately, in some instances, good taste has taken a back seat to the creativity. I’d like to see people put more creative effort into the message instead of location,” he said. Dave Schwartz, vice president of marketing and communications, Ideaworks Marketing and Design, Plymouth, who has also encountered a similar ad locally said, “A question that needs to be on advertisers’ and marketers’ minds is,‘Is it wise to invade peoples’ privacy?’You may be doing more harm than good.Another example of this is the pop up advertisements on the Internet. I’ll go to an information-based Web page and six to eight pop up window ads will appear for things like mortgage rates and vacation packages. It might be a great deal, but chances are that I am not going to use it because I’ve just gotten bombarded by advertisements.” “Off the wall” advertising is designed to break through the advertising bombardment, but Schwartz points out,“the more you can put the message in front of people, the more likely they are to recognize your product.The flip side to this is that the audience may have sensory overload — even if you use nontraditional media, but if you do choose to place an advertisement using a nontraditional medium, it may catch customers’ attention longer and you might have a better chance of the consumer recognizing your product.” More and more marketers seem to be taking the chance and going out on a limb to gain consumers’ attention by using off the wall marketing. Who knows what they will think of next, but as Schwartz said, “There is always going to be something new in advertising.That is the nature of the beast. What is considered nontraditional now is eventually going to become traditional . . . whether it takes a month, a year, a decade.” Tech boom has marketers looking for ‘deeper’ markets led to changes in the way we market. We can go all the way back to the wheel — I have been asked recently why marit let our recently evolved ancestors get keters have become so aggressive. The more of their goods to more of their answer starts with the “New Economy.” neighbors in less time. Some other obviNot the high-tech, bubble-riding economy ous examples are: Gutenberg’s printing envisioned in the 90s, but the sober press; automated travel (planes, trains, economy of the new reality automobiles); telephone and — this “new reality” being a telegraph; motion pictures; long span of modest ecoTV; computers, fax, Internet nomic activity, rather than a . . . so, we should not think 90s-like boom or a that we are really experiencDepression-like bust.We will ing something new, but just all need to work harder and the next step in the evolube smarter to succeed. tion of commerce. The tech boom did affect What’s different about the the world of marketing: present age is the new way First, by creating some we are criticizing marketing outstanding new avenues for and advertising. In the 20th communication, and vastly century we questioned the improving existing ones. Giannini content of marketing and These innovations made the advertising. That is, are the world a much smaller place that operates messages truthful, ethical, and appropriat a much faster pace.Technology, espeate for their intended audience,? cially communications, has leveled the Today, the hot issues are not so much playing field by providing even the small- the content of the messages, but the est businesses an affordable means to get method in which they are delivered. their message to prospective customers. Specifically, has the delivery of these Secondly, the burst of the tech bubcommercial messages become an intruble, slowed the global economy to a sion on the consumer’s privacy? crawl, and created a large pool of unemWith traditional media (print and broadployed, savvy professionals. Being used cast) the rules had been pretty clear. We to accomplishment and a healthy payimplicitly agreed to suffer through comcheck, many of these folks contracted the mercial messages in exchange for content entrepreneur bug and joined the already (entertainment, news, sports). burgeoning pool of fledgling American With other media, especially Internet, industrialists by venturing into their own direct mail and telephone, there is no businesses. This cycle has changed the implied exchange and, without that consent, many consumers feel that these business world as we know it. methods of marketing violate their right There are more companies competing to privacy. (Telemarketing and spam draw for a piece of a shrinking economic pie the most ire because they come unsolicitthat has been spread to every corner of ed, and require your attention as soon as the world. To add to the challenge, we they arrive. Mail can wait until you are now measure changes in the market ready to sort through it.) place in hours and days, instead of The facts of the whole matter are a bit months and years. of a paradox. Any time we are force fed When we look at all that has happened information we can legitimately claim an in the past decade it is no wonder that intrusion on our personal space of mind. marketers have become aggressive. It is On the other hand, we all rely on the truly a matter of survival. Let’s not forget, results generated by these marketing however, that marketers have always efforts for our livelihoods. been aggressive, and many of the most Unless someone buys the products, significant technological advances have services or ideas that our employers are By Gaetan Giannini 50 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 selling, we don’t get a paycheck. So, with overloaded and annoyed consumers on one side, and companies desperate for sales and growth on the other, what can be done to bridge this chasm? The answer is deceptively simple: Go back to basics. When we look closely we find that consumers do want to be marketed to, just not for all things from every company. Consumers will accept marketing for goods and services that they need or are interested in.They are even more accepting if it is on their terms, is somewhat entertaining, or contains an offer of real value to them. Successful companies in this century will be using personalized messages and images via a mix of media to educate and inform a laser-targeted audience of customers and prospects, thereby beginning to cultivate a relationship with these market segments, and creating value in their brand.We will find many companies looking not for the broadest markets for their sales, but the deepest. They will be asking themselves,“Where can we bring the most value to the customer?” rather than,“Where can we get the most volume?” This approach will build a loyal, longterm customer base that is willing to pay more for a product or service, rather than a fickle customer base that is willing to change brands on small differences in price or with the ebb and flow of fads. So business owners and marketers, take heart. The recent public outcry against certain types of marketing is not a signal to stop marketing. It is a signal to start marketing better. An intelligent, longterm approach to the right audience(s) will yield success without alienating clients or prospects. Gaetan Giannini is president of G2 Integrated Marketing and an adjunct professor of marketing and advertising at East Stroudsburg University. He is also an adjunct instructor for the Manufacturer’s Association of Berks County, and on the Business Advisory Committee of Ben Franklin Technology Partners. E-mail him at [email protected]. How to be heard above the marketing din Once a company embraces the concept of value-rich target marketing, they will still have a major challenge — how to stand out in the crowd. Here are just a few tips: Micro-target. Do your homework to find out which consumers find the most value in your product, service or idea. Mix up the media. Pursue this smaller, more valuable audience using a mix of media appropriate to their preferences and styles. It is more effective to have an audience-specific message that appears to be everywhere than it is to have a generic message that is only in one or two places. Place marketing and media strategically. Marketing has the most impact when it appears at the same time that a prospective customer is thinking about the problem that your product or service solves, or the need that it fulfills. It’s a marathon, not a sprint. The marketing axiom that it takes five to 10 exposures to your message before the average consumer will begin to identify with it is true. So, when you are getting tired of a given messages, you can assume that the prospective customers are just starting to absorb it. Stay on message. It is easy, and quite common for companies to have different messages and different looks on every marketing piece they produce. Once you have found a message and image that conveys the value of your company to its customers, make sure it is pervasive. Be smart, have fun. Marketing pieces that educate or entertain work best. They are often kept or passed around to others, which will increase effectiveness exponentially. So get creative! — Gaetan Giannini Now you can update your listings easier than ever on our “Book of Lists” website... book of lists 2 0 0 4 If you fit into any of the following categories... Advertising Agencies • Airports • Architectural Firms • Auto Dealers • Banks • Bank Stocks • Bed and Breakfasts • Business Financing Programs • Cellular Dealers • Chambers of Commerce • Colleges and Universities • Computer Retailers • Computer Training Sites • Computer Software Developers • Contractors • CPA Firms • Credit Unions • Economic Development Agencies • Elected Officials • Engineering Firms • Environmental Services • Excavators • Exporters • Fastest Growing Companies • Golf Courses • HMOs • Hospitals • Hotels • Independent/Assisted Living Homes • Industrial Parks • Interior Design Firms • Internet Services • Janitorial Services • Landscapers • Law Firms • Long Distance Carriers • Manufacturers • Newspapers • Nursing Homes • Occupational Medicine Providers • Office Equipment Retailers • Performing Art Centers • Physical Therapy Providers • Printers • Property Management Firms • Radio Stations • Real Estate Agencies • Recyclers • Savings & Loans • School Districts • Security Services • Shopping Centers • Sign Manufacturers • Ski Areas • Small Business Development Centers • Specialty Publications • Stock Brokers • Substance Abuse Facilities • Supermarkets • Technical Consulting Firms • Temporary Services • Tourist Attractions • Tourist Promotion Agencies • Travel Agencies • Trucking Firms • TV Stations • Utilities • Warehouses • Women-Owned Businesses Go to www.nepabookoflists.com today and update or add your listing for Book of Lists 2004. Listing Deadline: December 31, 2003 Advertising Deadline: January 31, 2004 For information on advertising in this “much anticipated” annual publication, or for information on a corporate sponsorship Call (570) 207-9001 • 1(877) 584-3561 If you are having difficulty updating your information online, Call (570) 207-9001 or email Sandy Sheehan ext. 5420 [email protected] Liz Zygmunt ext. 5415 [email protected] NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 51 Accreditations The Pennsylvania Small Business Development Centers were awarded full accreditation from the national Association of Small Business Development Centers. The review process, mandated by Congress, is based on a strict set of standards guided by the Malcolm Baldridge Quality Awards to ensure that SBDC programs are operating efficiently and effectively. As part of its findings, the accreditation team indicated the Pennsylvania SBDCs have numerous strengths including its quality control process, the impact of its client successes and its remarkable return on investment. Easter Seals Eastern Pennsylvania (ESEP) announced that it has been accredited by the Commission for Accreditation of Rehabilitation Facilities (CARF) for a period of three years. CARF is an independent, not-for-profit accrediting body that has established consumer-focused standards to help organizations measure and improve the quality of their programs and services. Pennsylvania College of Technology's bachelor degree nursing and certificate practical nursing majors have received full accreditation from the National League for Nursing Accrediting Commission. By earning the designation, those two majors join the College's associate-degree nursing major, which has been fully accredited by the NLNAC since 1993. Achievements East Penn Manufacturing, Lyon Station, proudly accepted the 2002 CARQUEST Outstanding Order Fill Award on March 26. In qualifying for this award, East Penn achieved a 96.4 percent rate in timely and accurate order filling. East Penn supplies battery accessories for CARQUEST auto parts stores including battery cables and terminal protection products, delivering to approximately 40 distribution centers. East Penn is able to provide accurate and on-time deliveries utilizing its extensive distribution capabilities. The Inn at Turkey Hill has received Wine Spectator magazine’s “award of excellence” for its 2003 wine list. The Inn at Turkey Hill is a country-style inn located at Exit 236 off of I 80 in Bloomsburg. Wine Spectator magazine’s award of excellence is given to restaurants that offer a wine list that includes wines appropriate to its cuisine and an ambience that appeals to a wide range of wine lovers. The award of excellence designates lists that offer a well-chosen selection of quality wine producers, as well as thematic match to the menu in both price and style. Also, the Inn at Turkey Hill has also been accepted into the Select Registry of Distinguished Inns of North America. Select Registry is an association of over 400 inns and bed-and-breakfasts throughout the United States and Canada. “Preference, distinction, choice and authenticity” establish members as select properties that exceed expectations when it comes to lodging. Visit innatturkeyhill.com or call (570) 387-1500. Larson Design Group Inc. (LDG) environmental sciences department head Jonathan R. Klotz presented at the recent World Water and Environmental Resources Congress 2003 in Philadelphia. His presentation, “What is Fluvial Geomorphology? What is Natural Channel Design?” provided an overview of this special science of stream channel restoration. Fluvial geomorphology applies engineering, geology, biology, hydrology, soil science, and other specific disciplines to work naturally with streams instead of controlling them. Klotz also presented, “Stream Restoration in an Urban Park Setting,” which explored the use of fluvial geomorphology in the restoration of Miller’s Run in Loyalsock Township.LDG is headquartered in Williamsport. Jeffrey Metz, vice president of operations for Northeast Restaurant Group, was honored by the Pennsylvania Restaurant Association as a state winner for the fifth annual Restaurant Neighbor Award. Northeast Restaurant Group is a licensed T.G.I., Friday’s Inc. franchisee that operates nine Friday’s restaurants in Wilkes-Barre, Quakertown and Williamsport, Pennsylvania and Toms River, Atlantic City, Brick, Somers Point, Manahawkin and Turnersville, New Jersey. The Restaurant Neighbor Award is a national program established by the National Restaurant Association to honor and recognize restaurateurs for outstanding community involvement and to inspire other restaurant operators and owners to do what they can in their respective communities.For more information, visit www.tgifridays.com. Shamokin area entrepreneur Linda Procopio was on the speaker's podium with the director of the Pennsylvania Department of Community and Economic Development, Dennis Yablonsky, at Bucknell University's Small Business and Development Center (SBDC) 25th Anniversary Celebration August 11. Procopio, managing partner of Procopio and Associates Fundraising, is celebrating her own corporate anniversary in August; it’s been one year since she established her company. Procopio and Associates Fundraising specializes in raising funds and writing grant proposals for nonprofit initiatives in the area. Procopio's speech at the SBDC Anniversary Celebration detailed her struggle to make her fledgling company profitable. It will also allowed her to publicly thank the SBDC for their help in providing her with legal, accounting, and marketing assistance in the early months of the company's founding. Outstanding product knowledge and client service have enabled George R. Shadie, of New York Life Insurance, Wilkes-Barre, to earn membership in the prestigious Million Dollar Round Table (MDRT). Shadie, is a nine-year MDRT member. He is also an assistant director of the PGA Committee, which oversees the operations of the annual meeting. Achieving membership in MDRT is a distinguishing career milestone, attained only by those who have demonstrated exceptional professional knowledge, expertise and client service. The Round Table’s membership represents the top life insurance and financial service professionals worldwide. MaTech (Machining Technologies) Inc., a firm that sponsors internships for Pennsylvania College of Technology students and employs five Penn College graduates, was presented with a “Mentorship Award” on August 9 at Summer Commencement ceremonies. Representatives of the Hebron, Md.-based company, which manufactures machined parts, assemblies and subassemblies for the defense, microwave telecommunications and poultry-automation industries, were honored at the ceremonies in the Community Arts Center in Williamsport. The Mentorship Award, which was established in 2002, recognizes alumni and businesses that have made a significant or ongoing contribution to the education and development of Penn College students. MaTech has sponsored internships for Penn College students since 1999 - as many as six per summer. This program recently expanded to include interns from other institutions, including The Pennsylvania State University. Penn College is a special-mission affiliate of Penn State. For more information about Penn College, visit www.pct.edu on the Web or call tollfree, (800) 367-9222. The recent bartender championships, held at all Northeast Restaurant Group-owned T.G.I. Friday’s, were a resounding success—raising more than $28,000 for various charities. Northeast Restaurant Group, owned by Metz Enterprises, is a licensed T.G.I. Friday’s, Inc. franchisee that operates Friday’s restaurants in Toms River, Atlantic City, Brick, Somers Point, Manahawkin and Turnersville, New Jersey as well as Wilkes-Barre, Quakertown and Williamsport. The list of champions, along with the money raised for their charity, includes: Rob Bakunas of the Wilkes-Barre location with $8,000 raised for the Make a Wish Foundation; Joel Albert of the Williamsport location with $3,700 raised for the Make a Wish Foundation; Henry Hufnage of the Quakertown location with $2,800 raised for Make a Wish Foundation; Fran Kramer of the Toms River, New Jersey location with $5,000 raised for Dover Township Police Vest-A-Cop; Brian Harris of the Brick, New Jersey location with $3,500 raised for Brick Vest-A-Cop; Dan Rooney, the recent winner of corporate T.G.I. Friday’s Best Flair Bartender in the USA, of the Somers Point, New Jersey location with $2,200 raised for the March of Dimes; Jay Morris of the Atlantic City, New Jersey location with $1,500 raised for the March of Dimes, and Raun Lynch of the Turnersville, New Jersey location with $1,500 raised for the American Cancer Society. The cancer society will in turn present the money raised at the Turnersville location to a former Friday’s employee who had to leave work to take care of her husband who has been diagnosed with cancer. Turnersville and Somers Point also held a tandem team bartender competition, and the winners were Erin Morrone and Paul Soltys in Turnersville and Dan and Ken Rooney in Somers Point. A soldier in the Communications Security and Tactical Missile Systems Directorate at Tobyhanna Army Department has been named the U.S. Army Communications-Electronics Command (CECOM) Non-Commissioned Officer (NCO) of the Year (fiscal year 2003).Sgt. William Tucker, a communications security repair technician, earned the award after winning CECOM Soldier of the Quarter (1st quarter, fiscal year 2003). A native of Jackpot, Nev., Tucker graduated from Jackpot High School in 1997 and has been a soldier for five years. He began his depot tour in March 2002. Tree Design Studios Inc. of Wilkes-Barre captured one Silver and two Gold awards at the District II American Advertising Federation’s recent ADDY Awards. With 60,000 entries, the ADDY Awards are the nation’s largest advertising competition, honoring creative excellence in advertising across all media. District Two of the American Advertising Federation held its ADDY competition with entrants from New York, Pennsylvania, Maryland, Washington, D.C., New Jersey and Delaware. As a District winner, Tree Design Studios will now go on to compete in the national competition. Tree Design was awarded a Gold ADDY in the Out-of-Home/Campaign category for it’s on-site billboard style, Arena Advertising for the Black Rock Brewery. Tree Design won a second Gold ADDY in the Interactive Web site/B2B category for it’s design of an animated Flash Web site titled “SHELFWorks” for Trion Industries, Inc. The Web site showcased the functionality of Trion’s newest product line. The Agency was also awarded Silver ADDY in the Mixed Media Campaign/Local category for it’s outdoor and newspaper advertising campaign titled 52 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 “Imagine That” for the Lackawanna County Library System. Tree Design Studios, Inc. is a full-purpose, multi-media advertising agency that services an array of local and national clients in a variety of industries. For more information on Tree Design Studios, visit www.treedesign.com www.treedesign.com/ or call 800-TREE-987. For the second consecutive year, The University of Scranton has been selected as one of the “most interesting colleges” in the nation by a publication that offers students an “unbiased” guide to their college selection. The University of Scranton is profiled in the 2004 edition of Kaplan Publishing’s The Unofficial, (Un)biased, Insider’s Guide to the 328 Most Interesting Colleges, by Trent Anderson and Seppy Basili. The university is one of just 25 colleges in Pennsylvania to be profiled in this year’s guide. The publication surveys students, recent graduates, guidance counselors and college administrators to compile an inside look of select colleges from a range of perspectives. The University of Scranton has been nationally recognized for quality by U.S. News & World Report as one of the top 10 finest comprehensive universities in the north for nine consecutive years – fourth in the 2003 edition. In 2002, the Princeton Review added The University of Scranton to its list of the nation’s “Best 345 Colleges.” Bank Notes Dimeco Inc. (Nasdaq “DIMC”), parent company of The Dime Bank, reported earnings of $1,845,000 for the six months ended June 30, representing an increase of 20.3 percent over the $1,534,000 reported for the same period in 2002. Net interest income increased 7.8 percent during the first half of 2003 versus the same period in 2002. Earnings per share increased $.32 or 16.0 percent, to $2.32 per share. In addition, dividends declared year to date increased 7.5 percent over the same period last year to $.86 per share. The market value of Dimeco, Inc. shares grew 29.7 percent to $57.05 per share at June 30, 2003 from $44 per share at June 30, 2002. The company continued to experience growth over the past year, with total assets of $291,577,000 at June 30, 2003, representing an increase of $31,134,000 or 12.0 percent. During this time, deposits increased $29,742,000 or 13.8 percent while the loan portfolio increased $37,001,000 or 22.0 percent. Return on average assets and return on average stockholders’ equity were strong at 1.32 percent and 14.51 percent for the first half of 2003. Asset performance was strong with the ratio of nonperforming assets to total assets decreasing 35.7 percent to .27 percent at June 30, 2003. George H. Groves, chairman and chief executive officer, announced the second quarter 2003 financial results for the Legacy Bank. Consolidated net income rose 13 percent over the same period in 2002, its third consecutive quarter of earnings. For the three months ended June 30, 2003 earnings were $157,000 or $.06 per basic and dilative shares compared to $139,000 or $.10 per basic and dilative shares for the same period in 2002. Net income before taxes for the three months ended June 30, 2003 was $97,000, an increase of $123,000 over the same period in 2002. For the six months ended June 30, 2003 net income rose 15 percent or $263,000 over the same period in 2002. Luzerne National Bank Corporation, Luzerne, announced a second quarter dividend of $.08 per share as of June 12. William V. Leandri, president and CEO of Luzerne National Bank Corp., also reported net earnings of $291,000 for the quarter ending June 30, 2003. Northeast Pennsylvania Financial Corp., the holding company for First Federal Bank, announced it will be restating its prior period earnings for the fiscal years from 1998-2002 and for the December 2002 and March 2003 quarters to reflect the correction of errors in the accounting for the indirect auto loan portfolio. The company estimates that the restatements will reduce the company’s capital as of March 31, 2003 and aggregate net earnings from these prior periods by approximately $3 million. E. Lee Beard, president and CEO, noted that the recently identified errors resulted primarily from a computer program coding error that impacted the calculation of interest income earned on its indirect auto loans. The June 2003 quarter earnings guidance discussed below reflects the proper interest earnings rate for these loans. The company is working to complete the quantification of the errors and to submit an amended form 10-K for the fiscal year ended September 2002 and amended forms 10-Q for the December 2002 and March 2003 quarters. Until such amendments are filed, the company’s previously filed periodic annual and quarterly reports, including financial statements and auditors’ reports thereon, should not be relied upon. This restatement has no impact on NEPF or First Federal’s cash flow and the bank is well capitalized under regulatory capital requirements. The accounting errors do not impact any loan customer. The bank’s deposits continue to be insured by the FDIC. Management affirmed that the accounting errors that led to the restatement were unintentional. Management believes that no other similar system errors have occurred which have not been detected by the company’s system of internal controls. Staffing, system and procedural changes have been and continue to be made to ensure such errors do not occur in the future. The company also announced it expects to report later this week a net loss of approximately $1 million for the three months ended June 30, 2003 and net income of approximately $700,000 for the fiscal year to date. These earnings include the impact of an impairment loss recognized during the quarter of $1.5 million for its investment in Builders First Holdings Inc. No tax benefit has been recognized for the current impairment loss. NEPF purchased $2 million of convertible preferred stock in Builders First, headquartered in Greenville, S.C., in fiscal 2000. Pre-tax losses of $500,000 had been recognized by NEPF previously. The small builder, multi-state lending program of Builders First continues to operate, however, efforts to raise additional equity capital have proven unsuccessful. The Builders First contract with an investment banker seeking to raise additional capital expired during the June quarter. First Federal’s loans originated through the Builders First program have been repaid with no losses. The bank is no longer a lender for this program. Northeast Pennsylvania Financial Corp. is the holding company of First Federal Bank, Higgins Insurance Associates Inc., Abstractors Inc. and Northeast Pennsylvania Trust Co. The company, through its subsidiaries, serves northeastern and central Pennsylvania through its 16 full service community office locations, three financial centers and a loan production office. George H. Groves, Chairman and CEO and Thomas W. Lennox, President of The Legacy Bank (OTC-BB: LBOH) jointly announced receipt of Preferred Lender Program status by the U.S. Small Business Administration (SBA). The Preferred Lender Program or “PLP” status is the highest designation awarded by the SBA. The designation is granted to the SBA’s best participating lenders, who will receive faster service from the SBA, have their lending portfolio periodically examined by the SBA and ensure a streamlined loan application, underwriting and decision process. In 2002, the Legacy Bank settled 17 SBA guaranteed loans totaling $3,441,000. To date in 2003, the Legacy Bank is currently ranked 20th in loan volume for the SBA’s Philadelphia region. First Columbia Bank and Trust Company accepted two new college graduates from Bloomsburg University’s class of 2003 into its management training program. The two graduates began work June 2 and each had previously been marketing interns at the bank. First Columbia’s management training program is a blend of on-the-job experience and classroom training, structured to allow creativity and flexibility in scheduling. Trainees rotate through assignments in key business departments and work on special projects. The graduates are Katrina Callahan of Wellsboro and Christopher Kier of Danbury, Conn. First Columbia Bank and Trust Company reported total assets in excess of $226 million as of June 30. It operates seven community branch offices in Columbia County and can be found at firstcolumbia.com. Bankruptcies (Definitions: In accordance with the U.S. Bankruptcy Code, in a Chapter 7, an appointed trustee takes ownership of the debtor’s assets to determine whether any assets are available for liquidation to pay creditors; in a Chapter 11, a debtor, usually a corporation, in order to repay a debt, develops a reorganization plan; in a Chapter 12, debt-burdened family farmers file a repayment plan to satisfy debt; in a Chapter 13, a debtor, having regular income, with less than $750,000 in secured debts and $250,000 in unsecured debts, must file an installment plan lasting no longer than five years to repay creditors. In Chapters 11, 12 and 13, the debtor’s plan must be approved by the U.S. Bankruptcy Court, U.S. Trustees Office and the debtor’s creditors. Abbreviations: a-k-a - also known as; d-b-a - doing business as; f-d-b-a - formerly doing business as; f-t-a - formerly trading as; p-d-b-a - previously doing business as; t-a - trading as. Bankruptcy cases listed in the Business Journal are filed with the U.S. Bankruptcy Court, Middle District of Pennsylvania, Wilkes-Barre division of the court. Chapter 7 Case: 53557. Weir Mountain Transportation Inc., R.R. 3, Box 3489, Saylorsburg, Pa. 18353. Filed: July 24, 2003. Case: 53746. Chardonnay Inc., R.R. #6, Box 6003, East Stroudsburg, Pa. 18301. Filed: Aug. 5, 2003. Case: 53894. Capital Computer Concepts Inc., P.O. Box 58, Long Pond, Pa. 18334-0058. Filed: Aug. 11, 2003. Business Notes Breast cancer survivors can send a powerful message of hope through the "Gallery of Hope," an inspiring pantheon of photographic portraits commissioned by Blue Cross of Northeastern Pennsylvania. By participating in the Gallery of Hope, survivors symbolically encourage others to fight breast cancer. Through their portraits they advocate early detection and treatment, and greater efforts at discovering a scientific cure. Blue Cross annually commissions portraits of breast cancer survivors for the Gallery of Hope. Each professionally produced portrait includes the survivor's photograph and a heartfelt personal story. Honorees are recognized during the annual Blue Cross reception held at the F.M. Kirby Center for the Performing Arts in Wilkes-Barre. This year's special guest is singer Natalie Cole. The gallery is displayed at various venues following the event. More than 70 breast cancer survivors have volunteered for the Gallery of Hope during the past four years. To be recognized in the Gallery of Hope, write to Marlene Hogrebe, Blue Cross of Northeastern Pennsylvania Community Relations, 19 N. Main St., Wilkes-Barre, or call (570) 200-6302. The Devereux Pocono Center Advisory Board elected officers and approved the addition of a new member at its recent Annual Advisory Board meeting at the Sterling Inn in Newfoundland. The following officers were elected: G. Richard Garman, of Mountaintop, president; Barkley Stuart of Dallas, Texas vice president; and Michael Peifer of Greentown, secretary. Garman is director of Planned Giving for Wayne Memorial Hospital in Honesdale. Stuart is executive vice president and chief operating officer of Glazer’s, a wholesale distributors of wines and spirits in 10 central U. S. states. Peifer is a certified public accountant and is the treasurer for the County of Pike. Joining the Advisory Board as a new member is Janet Hunter of San Diego. Hunter and her husband are parents of a learning disabled adult daughter who resides and works at the Devereux Pocono Center. The other two Pocono Center staff members of the Advisory Board are executive director, Mary F. Seeley, and director of development, Jack Dennis. Today the Devereux Foundation consists of centers in 12 states and the District of Columbia offering a comprehensive system of care to children, adults and families with special needs that derive from behavioral, intellectual, psychological or neurological impairments. The Pocono Center, one of four centers in Pennsylvania, provides a wide range of treatment services to its clients who come from areas throughout the United States. For more information on the Pocono Center or the Devereux Foundation, contact Jack Dennis at (570) 676-3417. Double Diamond Companies Inc., owner and operator of Eagle Rock Resort in Hazleton has announced the development of a hotel with related amenities. The lodge at Eagle Rock is tentatively scheduled to open on Labor Day Weekend. Nestled within the beautiful backdrop of the Blue Mountains, Eagle Rock will boast the finest resort facilities in the region. Each guestroom is over-sized and equipped with a cozy fireplace, a bathroom with his/hers sinks, a separate tub and shower and a private balcony with spectacular views. "We will open our doors as the most luxurious hotel in Northeast Pennsylvania," says Peter Bonell, Sr., vice president of hospitality for Double Diamond. "It is our intention to offer the area a first class resort that will attract ground-breaking opportunities for the area and it’s businesses," Bonell says. The initial phase will include 46 deluxe rooms, a full-service salon and spa and a state of the art fitness center. Located adjacent to the hotel will be a swimming pool with a bathhouse and lighted tennis courts expected to be completed in the spring of 2004. Under construction as well, is a full service driving range. Phase two will include an additional 46 guestrooms plus a conference center for meetings and banquets. The Spa at Eagle Rock will also hold its grand opening on Labor Day weekend. The spa will offer an array of services including hair cuts, styles and colors, manicures and pedicures, Massages, facials, skin treatments, tanning beds and much more. Also, inside the relaxing spa is a state-of-the-art fitness center with weight training and cardiovascular equipment and a separate room for aerobics. Eagle Rock Resort has an 18-hole championship golf course, 14 lighted ski slopes, snow tubing, an equestrian center with trail rides and boarding and many more exciting activities. It offers corporate rates, group packages, spa, golf and ski getaways, banquets and more. Call (570) 384-1378 for more information. Double Diamond Companies Inc. was formed in 1972 and is headquarter in Dallas, Texas. The company is recognized throughout the resort industry for its first-class resorts, challenging golf courses, beautiful amenities and professional service. Double Diamond’s portfolio includes over 10,000 acres of land including White Bluff Resort on Lake Whitney in Texas, The Cliffs Resort on Possum Kingdom Lake in Texas, The Retreat in Cleburne, Texas and Eagle Rock Resort in Hazleton. For additional information, contact Kelly Beres at Double Diamond Companies (214) 7069893 or [email protected], or Lloyd Williams, general manager at Eagle Rock Resort at (570) 3841378 or [email protected] The Executive Women’s Golf Association, (EWGA) Stroudsburg chapter has elected its officers for the 2004 season. They are: Wendy S. Roeber, president; Linda P. Wasser, vice president; Wanda A. Hunter, secretary; and Lynda N. Moscatello, treasurer. Founded in 1994, EWGA is now in its second decade of promoting the growth of women’s golf with over 16,000 members nationwide. The local Stroudsburg chapter has more than 200 members with Mountain Manor Golf Club in Marshalls Creek serving as host club. Weekly play is held every Wednesday at 5:30 p.m. Clinics and various events are held throughout the year. Information can be obtained via the Web site, www.ewgastroudsburg.com. The national office can be viewed at www.ewga.com. The Innovation Center@Wilkes-Barre has named its advisory board. Board members are: Chris Alexander, King's College; Matt Alferio, First Insurance Center; Dr. Jeffrey Alves, Kirby Center for Free Enterprise; John Augustine, Innovation Center @Wilkes-Barre; John Blake, Gov. Rendell's northeast office; Frouke de Quillettes, Penn State Wilkes-Barre; Tom Druby, Blue Cross; Jerry Ephault, Ben Franklin Technology Partners; Kevin Foley, KKB; Dr. Tim Gilmour, Wilkes University; Chris Haran, Great Valley Technology Alliance Institute; Jim Hilsher, Mericle Commercial Real Estate; Ruth Hughes, Wilkes University SBDC; Atty. Joe Kluger, Hourigan Kluger Quinn; Mary Ann Lambert, M&T Bank; Tom Mailey, incubator consultant; Bob Max, NEPA Alliance; Chris Mencer, Penn State Hazleton; Paul Moran, King's College; Larry Newman, Urban Workshop; Atty. Lee Piatt, Rosenn, Jenkins & Greenwald; Philip Santarelli, Parente Randolph; Catherine Shafer, CDS Creative; John Sumansky, College Misericordia; Alan Wilcox, Luzerne County Community College; and Ed Yencha, PNC Bank. Leadership Lackawanna is accepting registrations for the Executive Program. Sponsored by Leadership Lackawanna, the Executive Program is designed to assist new area residents in making a knowledgeable transition to living in the community, and assist new executives develop a network of business contacts. The program is open to public and private sector professionals/key executives who have either recently moved to the greater Scranton/Lackawanna County area or have recently been promoted to an executive level position. Executives who have recently returned to the region are also encouraged to apply. Applicants should be interested in learning how Lackawanna County functions and be committed to enhancing the area's economy and quality of life. Through five weekly sessions, the participants have an opportunity to meet key business and community leaders and to receive an extensive overview of the area's history, economic and political structures, cultural affairs, and leisure amenities.Sessions are in September and October of 2003. Each seminar consists of at least two presentations that are facilitated by well-known experts in a variety of fields. All programs include cocktails and gourmet dinner. The series is limited to 10 executive professional participants and their spouses or guests, and tuition is $650. To register, please contact Christina Fenton at (570) 342-7711, or at [email protected]. Brochures are available at the Chamber, 222 Mulberry Street, Scranton. For more information, log on to www.leadershiplackawanna.com. In an effort to resolve the critical nursing shortage in the Northern Tier counties, Pennsylvania College of Technology is seeking approval from the Pennsylvania State Board of Nursing to offer a practical nursing program at its North Campus near Wellsboro beginning later this year. The initial approval for the program has been received. The proposed 12-month vocational program will be scheduled Mondays-Thursdays for students who choose to work part-time while attending school. Clinical experiences will take place at Soldiers and Sailors Memorial Hospital and the Green Home, Wellsboro, as well as other area healthcare sites. Upon completion of the program, students will be eligible to take the practical nursing National Council licensure exam for full licensure as a licensed practical nurse. For more information about the proposed practical nursing program at the North Campus, call (570) 7247703. Pennsylvania College of Technology’s School of Transportation Technology acquired four donated vehicles recently that will be used for instructional and transportation purposes. Toyota Motor Sales U.S.A. Inc. is donating a 2003 Camry LE and a 2003 Corolla. The college also will receive a Dodge 1500 truck from Daimler Chrysler and a 2003 Econovan from Ford Motor Co. For more information about the automotive programs at Penn College, call (570) 327-4516, send e-mail to [email protected], or visit www.pct.edu/schools/tt/ on the Web. Traffic safety, mass transit, aviation and highway construction will be among the numerous issues considered in central Pennsylvania’s long-range transportation plan, which SEDA-COG is currently developing. According to SEDA-COG’s Jim McAllister, program director for transportation and public safety, “The plan will not only encompass every aspect of transportation in the region, it will address the relationships between them — rail freight and highway freight, transportation systems here and their connections to other parts of the state. For instance, there are fresh-water ports in Erie and Pittsburgh and the Port of Philadelphia is a major departure point for overseas freight. What can we do in central Pennsylvania to improve our companies’ access to these ports?” In terms of airline service, the longrange plan will consider use patterns of air travelers. McAllister said, “We need to know why so many people in our region use the Baltimore/Washington Continues on page 55 Saturday, November 15, 2003, 9 a.m. to 6 p.m. at the Sheehy-Farmer Campus Center at Kings College Are you in business? Are your customers women of discriminating taste? Yes? Then this event's for you! For a luxurious, upscale event...that's intimate, interactive and fun, we've created an elegant environment that will be the perfect setting to present your products or services to our attendees. Exhibitor space and Sponsorship Opportunities available. Why exhibit? Meet your target customers face to face, improve top-of-mind awareness and get in on this prestigious annual event that is heavily promoted in multiple media outlets. Event Features: * Inspiring Roundtable Discussions on a variety of topics: Eldercare, Parenting, Depression, Personal Growth, Overcoming Adversity and many more! *Beauty Makeover Advice *Massages * Health Screenings * And more!!! Call (570) 602-1175 for an Exhibitor Prospectus or visit www.wvia.org NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 53 R e g i o n a l B R I E F C A B u s i n e s s S E Foundation seeks new chief executive Donating used cell phones aids VRC Victims Resource Center (VRC) is launching a new fundraising effort to offset funding cutbacks for the upcoming fiscal year.Through this new program, used cell phones are collected and turned into Shelter Alliance, which then reimburses VRC up to $10 per phone. The proceeds received will help VRC meet its mission of providing crisis intervention and ongoing services for victims of crime in Wyoming County. Vicki Prekel and Miranda Tagliaterra, volunteers at VRC, have organized this project by designing flyers, creating boxes for phone collection, and contacting businesses and organizations to request participation. Businesses that are willing to have a phone collection box placed in their establishment can contact VRC at (570) 836-5544.Anyone who has a used cell phone to donate can look for the boxes in area businesses or drop it off at 119 Warren Street,Tunkhannock. Victims Resource Center provides a myriad of confidential services including support groups, counseling, advocacy, and a 24-hour hotline for victims of crimes and prevention education programs for the community.VRC is a member agency of the Wyoming County United Way. For more information about Victims Resource Center, please call (570) 836-5544 or visit www.vrcnepa.org.Above, left to right, are Miranda Tagliaterra,Vicki Prekel and Heidi Morgan. Tobyhanna tenant activity holds ribbon-cutting A ribbon-cutting ceremony held June 19 officially launched the opening of the Army Intermodal and Distribution Platform Management Office (AIDPMO) in the Logistics Support Activity Packaging, Storage and Containerization Center (LOGSA PSCC). LOGSA PSCC is a tenant activity, located at Tobyhanna Army Depot. The AIDPMO alleviates a readiness shortfall by serving as the single manager for all Army-owned containers, flatracks and distribution platforms, explained Brig. Gen. J.A. Mangual during his opening remarks. Mangual is the Department of the Army’s director of Force Projection and Distribution. LOGSA PSCC also celebrated its 40th anniversary this year, pointed out Niels Biamon, deputy for current operations at the U.S. Army Materiel Command (AMC), another guest speaker at the event. Other dignitaries in attendance for the grand opening ceremony included Thomas Edwards, deputy to the commander, U.S. Army Combined Arms Support Command; Col. Kurt Weidenthal II, commander, AMC LOGSA; Nelson Chandler and Don Stump,Transportation and Distribution Division, Army G-4;and Oscar Lollis, former director of LOGSA PSCC. 54 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 The Williamsport-Lycoming Foundation announced “with regret” that its president and chief executive officer, Kimberley Pittman-Schulz, will be stepping down from her post by mid-November. Pittman-Schulz relocated from the West Coast nearly seven years ago to accept her role as the first paid executive of this 87-year old community foundation, and has been offered the opportunity to return to Washington. The foundation’s board of directors will begin a search for a new chief executive shortly. During Pittman-Schulz’s tenure, the foundation has expanded from a community foundation serving primarily Lycoming County into a regional resource serving the philanthropic needs of a seven-county area. While stock market conditions have impacted the foundation’s charitable portfolio in recent years, it has benefited from tremendous support from its donors, with the number of funds under management growing from 85 in 1997 to more than 200 current funds established for a wide range of community benefit purposes. During that time, annual grantmaking and charitable distributions for community needs and priorities more than doubled.With assets in excess of $42 million, the Williamsport-Lycoming Foundation remains one of the largest community foundations in the nation in relation to the population that it serves. “It has been a pleasure and an honor to work with Kimberley. She has been a driving force in working with the board and staff to raise the professionalism and philanthropic impact of our community foundation,” says Carol Sides, vice chair of the foundation’s board of directors. “She will be greatly missed, but we respect and understand her personal decision to return to the West.” Pittman-Schulz “It is with mixed emotions that my husband and I prepare to move on,” says Pittman-Schulz.“However, I have been blessed to work with a dedicated board, and I have had the opportunity to engage a caring group of professional staff to work side by side with me in serving the community. I’m leaving the foundation in the very capable hands of a knowledgeable staff and board of directors until the next chief executive is appointed.” Pittman-Schulz will conclude her responsibilities by mid-November to become the president of the Clark College Foundation in Vancouver, Washington. With assets of approximately $52 million, the Clark College Foundation is the largest single-campus community college foundation in the country. For additional information about the Williamsport-Lycoming Foundation, call (570) 321-1500, or visit www.wlfoundation.org. Metz receives ‘Golden Wishbone’ award from Make-A-Wish Jeffrey Metz, vice president of operations for T.G.I. Friday’s Restaurants, was recently presented The Golden Wishbone award by Jessie Hardy, president and CEO, Make-AWish Foundation of Northeastern Pennsylvania. This award is the foundation’s highest honor and represents Metz’s and TGI Friday’s commitment and dedication above and beyond that of others to the organization’s mission and the children it serves. Seen at the presentation were, left to right, Metz, Hardy and Art Owens, director of program services, Make-A-Wish Foundation. Continued from page 53 International Airport. In planning for the future, should it be easier to get to airports in Harrisburg and Philadelphia? We also want to look at the role of airports in State College and Williamsport.” Completion of the long-range plan is expected to take 12 to 18 months, at a total cost of $90,000, of which $72,000 is being provided by the Pennsylvania Department of Transportation and the Federal Highway Administration. The balance will be met through local matching funds and in-kind services. The Sunbury Hill Neighborhood Task Force has begun to develop its strategic action plan. The task force is part of the Sunbury City Visions project, being coordinated through SEDA-COG’s Community Resource Center. Sunbury’s identified strengths are its historic significance and the city’s friendliness and spirit. Task force members are considering a new name for the neighborhood which extends from 8th Street to the waterworks behind Sunbury Community Hospital and from Wolverton Street to the Pomfret Manor Cemetery. Store Depot Inc., a store supply distribution company has opened in Northumberland County. Place an order by 4 p.m. ET and receive it next morning (based on one day regular ground UPS delivery area). The Depot’s warehouse is stocked with items to help business owners provide the best possible service to their customers such as, hangers, display cases, paper and plastic bags, jewelry displayers, accessories and boxes, tagging guns and fasteners, gift wrap and accessories — to name a few. “We are your one stop source,” says Walt Lutz, president of Store Depot Inc. “Talk with a person, not an answering machine.” Visit the Depot’s Web site at www.storedepotinc.com. Orders can be placed on this secure site. Store Depot Inc. accepts all major credit cards, money orders and checks. Call toll free, 1-866-643-3768. Fax orders to 866-640-3458. TNT—The Northeast Theatre, has a new Web site. For complete information on the Theatre's activities, visit: www.thenortheasttheatre.org. The site is updat- September Events 1 Deadline for community project submissions for PO-NE (Pocono Northeast) awards. The PO-NE awards are an annual event managed by the Pocono Northeast Development Fund (PNDF) on behalf of the NEPA Alliance that recognizes community development projects that have contributed to enhancing the quality of life in the region. Categories include: Community Improvement; Cultural Enrichment; Economic Development; Environmental Action; Healthcare; Human Services; Media/ Special Events; and Recreation/Tourism. All past winners whose projects are still in operation are also encouraged to submit an update to be considered for a new commemorative award recognizing the program's 25th anniversary. For more information, contact NEPA at (570) 655-5581. 1 Deadline for discount on booth space and grant application for 2004 EUROSATORY: International exhibition for Land/Air Defense & Security Forces in need of products and services for military protection and operations. Grants available to cover costs. For more information, contact Michael Horvath at the NEPA Alliance at (570) 655-5581. 8 Transportation Enhancement Program Application Workshop. Program funding applications are now available for projects that have a relationship to the surface transportation modes (highway, transit, rails and trails) through the Pennsylvania Department of Transportation (PENNDOT) 2003-04 Transportation Enhancements Program. The Northeastern Pennsylvania Alliance (NEPA) and representatives from PENNDOT will be conducting a pre-application workshop for prospective applicants with projects located within Carbon, Monroe, Pike, Schuylkill, or Wayne Counties. The workshop will be held at the Monroe County Public Safety Center on Gypsum Road in Stroudsburg from 7 p.m. to 9 p.m. Directions to this facility can be found at www.monroeco911.com/oes-. htm. For the workshop registration form and additional information about the 2003-04 Transpor-tation Enhancements application, refer to www.dot. state.pa.us. To register for the workshop, contact Brian Langan, NEPA’s local government specialist at (570) 655-5581, ext. 255, or e-mail langan@ nepa-alliance.org by Sept. 1. Registration forms downloaded from the PENNDOT Web site, may be faxed to NEPA at (570) 654-5137. 9 Alternative Medicine and Rehabilitation, 7 p.m. presented by Dr. Eric Petterson at the Schuylkill Rehabilitation Center, 300 Schuylkill Medical Plaza, Pottsville. Free and open to the public. Registration required. For more information, call Schuylkill Rehabilitation Center at (570) 621-9500. 10 Plan to attend the Greater Wilkes-Barre Chamber's Annual Economic Outlook Breakfast, sponsored by PNC Bank, scheduled for September 10 at the Woodlands. Come and listen to featured speaker Stuart Hoffman, senior vice president and ed regularly. Three depot employees will chair Tobyhanna Army Depot's Combined Federal Campaign (CFC) underway this month. The federal government's annual fund drive for local, national and international charities concludes in October. The depot's CFC committee has set a goal of $120, 000 for this year's drive, says CFC chairman Randy Simpson. Co-chairing the drive are Rose Gesell of Clifton and Laura Dumback of Scranton. The mission of the CFC is to support and promote philanthropy through a program that is employee focused, cost efficient and effective in providing federal employees the opportunity to improve the quality of life for all, said Simpson. Certifications & Licenses East Penn’s metals division was recertified by the Occupational Safety and Health Administration (OSHA) for its voluntary protection program (VPP). On April 7-11, the metals division, for the second time, achieved the elite STAR status. East Penn is the first battery manufacturer nationwide to have any part of its operation granted STAR recognition in the OSHA VPP receiving the first certification in October 1999. Joseph Manda, mechanical designer, for StrunkAlbert Engineering received his Pennsylvania Professional Engineering (P.E.) license. The Pennsylvania P.E. license can only be awarded to those who serve at least a four-year internship under another licensed PA P.E., has a college degree, and successfully pass the daylong P.E. exam. Manda sat for the exam in April and was awarded his license in June. It was his first attempt to secure his license. As a licensed professional he has the ability to seal engineering drawings and is legally bound to the integrity of the design. Manda has been employed by Strunk-Albert Engineering for the past 12 years. Strunk-Albert Engineering is a mechanical and electrical consulting firm located in East Stroudsburg. chief economist for PNC Bank Corp, discuss our local, state and national economy. Register and pay online at www.wilkes-barre.org/calendar, or contact Trish Wilk at the Chamber at (570) 823-2101. 11 NEPA Alliance Annual Dinner at the Hilton Scranton & Conference Center in Scranton. Keynote speaker is Joe Battipaglia, executive vice president and chief investment officer for Ryan, Beck & Co.LLC. For more information, visit www.nepa-alliance.org or call (570) 655-5581. 12 Marywood University’s Conflict Resolution Institute is offering a certificate program in conflict resolution. The first of the series of elective courses to achieve the certificate is Mutual Gains Approach to Resolving Conflicts, offered on Friday, September 12 from 10 a.m. to 5 p.m. Cost of the course is $100 if registered by September 5, and $115 after September 5. For more information, call (570) 348-6237. 15 Marywood University’s Conflict Resolution Institute is offering a certificate program in conflict resolution. The first of the series of required courses to achieve the certificate is Conflict Management and the Culture of Work, being taught by center coordinator, Dr. Michael Iluzzi, beginning on September 15 and continuing every Monday evening until October 6. Cost of the course is $275 if registered by September 8, and $290 after September 8. For more information, call (570) 348-6237. 15 Local runners who register for the Steamtown Marathon before September 15 receive $10 off the $55 entry fee. Runners interested in competing in the eighth annual Steamtown Marathon scheduled for Sunday, October 12 at 8 a.m. are encouraged to register for the race, which is already quickly filling up to its capacity of 2,500. To register, a runner can either go to the marathon’s Web site, www.steamtownmarathon.com and register on-line using a credit card, or use a printed version of the application from the Web site and mail it to Steamtown Marathon, P.O. Box 20126, Scranton, Pa. 18502. Wheelchair athletes must register by September 30. The Steamtown Marathon benefits the medically fragile children of St. Joseph’s Center, Scranton. 15 - 19 King's College and NEPA's Pocono Northeast Development Fund are hosting The Grantsmanship Center's five-day workshop September 15-19, at King's College. The Grantsmanship Center is the world's oldest and largest grantsmanship training organization. The program is a five-day intensive workshop that combines expert instruction with practical exercises that take participants through the application process step by step. The cost of the workshop is $775 and includes a one-year membership in the Grantsmanship Center along with proposal reviews and access to funding databases covering foundation, corporate and government sources. Class size is limited to 25. Registration can be done online at www.tgci.com or by calling The Grantsmanship Center at (800) 421-9512.For more information: contact Marla Mensch, King's College, at (570) Deeds Columbia County Wachovia Bank formerly known as: f-k-a First Union Bank (TSTE). Property Location: Benton. Seller: Michelle L. Cregar a-k-a Michelle L. Grenewich. Price: $2,613.85. Robert R. and Karen J. Hergan. Property Location: Catawissa Twp. Seller: Frederick M. and Jacqueline H. Long. Price: $239,900. Wilburton United Methodist Church. Property Location: Conyngham Twp. Seller: George and Anna Barlow. Price: $2,000. Gregory K. and Diane M. Fayock. Property Location: Scott Twp. Seller: George J. and Mary Jo Kuczynski. Price: $224,500. Robert A. and Stacey Brunozzi Jr., Property Location: Bloomsburg. Seller: Citifinancial Services Inc. Price: $30,000. MSY Investments LLC. Property Location: Berwick, Seller: Penn Petroco Inc. Price: $180,000. Christopher R. and Christina M. Dorothy. Property Location: Scott Twp. Seller: John F. and Irene C. Kropiewnicki and Helen A. Heller. Price: $288,000. Community Banks f-k-a Citizens National Bank. Property Location: Locust Twp., Seller: Marie Parkansky and Joseph A. Gaughan, Price: $4,622.33. Wells Fargo Home Mortgage Inc. Property Location: Hemlock Twp. Seller: William J. Petroski, Price: $1,863.04. First Columbia Bank & Trust Co., Property Location: Berwick. Seller: James M. and Lori Ann Palermo. Price: $4,681.42. Conesco Financial Consumer Discount Co., Property Location: Berwick. Seller: Paul Robert and Sherri Dawn Prueitt. Price: $3,812.86. Charles E. and Patricia A. Porter. Property Location: Cleveland Twp. Seller: United States of America Farm Service Agency f-k-a Farmers Home Administration United States Department of Agriculture. Price: $102,000. Patricia D. Kukorlo, Property Location: Bloomsburg. Seller: Northwestern Human Services of Pennsylvania. Price: $170,000. Sandro M. and Christine W. Sorge. Property Location: Bloomsburg. Seller: Columbia Montour Council Boy Scouts of America. Price: $69,000. Eric I. And Maryanne E. Weisel. Property Location: Scott Twp. Seller: John C. and Marianne J. Menapace. Price: $272,000. John J. Hunter. Property Location: Beaver Twp., Seller: Yamulla Trucking & Excavating Co. Inc. Price: $35,000. Edward R. and Laura A. Gleeson. Property Location: Cleveland Twp. Seller: Southern Columbia Corp. Price: $24,900. Richard L. and Joseph L. Barto. Property Location: Benton. Seller: Federal National Mortgage Asso. ak-a Fannie Mae, Price: $37,000. Charles E. and Patricia A. Porter. Property Location: Cleveland Twp. Seller: United States of America United States Department of Agriculture Farm Service Agency f-k-a Farmers Home Administration. Price: $112,000. Keith W. and Carmen R. High. Property Location: South Centre Twp. Seller: Knorr Contracting Inc., Price: $30,000. Berwick Industrial Development Assoc. Inc., Property Location: Berwick. Seller: Deluxe Homes of PA Inc. f-k-a Donald E. Meske Enterprises Inc. Price: $1. Deluxe Homes of PA Inc. Property Location: Berwick and Briarcreek Twp. Seller: BID Assoc. Inc. Price: $1. George E. Zapata. Property Location: Locust Twp. Seller: Wm. Specialty Mortgage LLC. Price: $61,500. Town of Bloomsburg. Property Location: Bloomsburg. Seller: Warrior Run Holding Corp. and Gaylen M. and Gertrude R. Gerrish. Price: $0 Route 11 Developers LLC. Property Location: Scott Twp. Seller: Piano Family Limited Partnership Continues next page 208-5900, ext. 5359, or The Grantsmanship Center, (800) 421-9512. S E P T E M B E R Pocono Mountains Chamber of Commerce is hosting a one-day Human Resource conference scheduled for September 16 at the Fernwood Resort & Country Club.The event will feature over 15 different HR-related topics and a luncheon discussion by regional employers of “Best Practices” in Human Resources. The cost of the Human Resource Conference is $85 and includes lunch. Participants interested in attending only the luncheon can do so for $25. Reservations can be made by contacting the Pocono Mountains Chamber of Commerce at (570) 421-4433 or e-mail [email protected]. This conference is designed to appeal to both the HR professional and today’s CEO by integrating the Human Resource application into business through workshops that are based on everyday business situations. S 16 16 The Brush Valley Regional Chamber of Commerce announces its first annual “Brush Valley Business Showcase.” Both members and non-members are invited to participate in the event. Vendor fees are based upon status as a member and restaurants who will be giving away free food samples will receive a deep discount. Table and linens will be included with the vendor fee, as well as a discount advertising package supplied by BILL 95FM, who will be promoting the event on the radio two weeks prior and hosting a live remote from the showcase. The event is open to the public, admission is free. The event will be held from 4 p.m. until 8 p.m. at the Team PA Career Link Center, 2 E. Arch Street, Shamokin. Contact the chamber office for vendor fees and new member special rates by calling (570) 6484675 or e-mailing [email protected]. 17 PALS Renewal offered by the Education Department of Community Medical Center Healthcare System, 1800 Mulberry Street, Scranton. For more information or to register, call (570) 969-8986. 17 & 18 Healthcare Provider CPR course, 6 p.m. to 10 p.m. offered by the Education Department of Community Medical Center Healthcare System. For more information or to register, call (570) 969-8986. 18 End of Summer mixer at the Black Rock Brewing Company, Wilkes-Barre, from 6-8 p.m. sponsored by the Northeast Pa. Ad Club. The event will feature brewery tours, hors d'ouevres, cash bar. $17 member; $20 nonmembers. RSVP: Karen Saunders, (570) 476-7435 by September. 12. 23 Healthcare Provider Renewal course, 6 p.m. to 10 p.m., offered by the Education Department of Community Medical Center Healthcare System, 1800 Mulberry Street, Scranton. For more information or to register, call (570) 969-8986. 25 An upcoming one-day seminar, “The Leadership Edge,” has been designed by Penn 7 14 21 28 M 1 8 15 22 29 T 2 9 16 23 30 W 3 10 17 24 T 4 11 18 25 F 5 12 19 26 S 6 13 20 27 State to help supervisors and managers enhance leadership skills. The seminar leaders are all highly experienced members of Penn State’s Management Development faculty. The seminar will feature three program tracks, each containing four focused skill-building sessions. Participants can stay with one track or mix and match sessions from different tracks. Track 1 — Working with and through Others: Essential Skills; Track 2 — Creating an Environment for Success: Team Management Skills; Track 3 — Meeting the Challenges of Leadership: Strengthening Personal Skills. The conference will be held on Sept. 25, at the East Mountain Business Center, WilkesBarre.For more information, or to register, visit www.outreach.psu.edu/C&I/LeadershipEdge or call 800-PSU-TODAY (778-8632.) 24 Customer Service Workshop, from 1 p.m. to 3 p.m. presented by Joan Simmons and sponsored by the Entrepreneurial Network-NEPA Alliance, in the NEPA Conference Room, Oak Street, Pittston. For more information, visit www.nepa-alliance.org or call (570) 655-5581. 25 IV Therapy, offered by the Education Department of Community Medical Center Healthcare System, 1800 Mulberry Street, Scranton. For more information or to register, call (570) 969-8986. 25 & 26 ACLS Provider offered by the Education Department of Community Medical Center Healthcare System, 1800 Mulberry Street, Scranton. For more information or to register, call (570) 969-8986. 28 Seventh annual AIDS Walk 2003, Public Square, Wilkes-Barre. Registration 11:30 a.m., walk begins 1 p.m. For more information, call (570) 823-5808. 29 Luzerne County Community College’s Foundation Scholarship Golf Tournament will take place on Monday, September 29 at the Blue Ridge Trail Golf Club, Mountaintop. The day begins at 11 a.m. and includes lunch, noon tee off. At 5:30 p.m. there will be cocktails, dinner, prizes and a raffle. Foursomes cost $500; foursome and tee sponsor, $600; foursome, tee and scholarship sponsor, $1,600 or $1,100; scholarship sponsor only, $1,000 or $500; dinner only, $50. Call (800) 377-LCCC, ex. 7331 for details. Deadline to register is September 12. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 55 Price: $1. Lackawanna County • JOIN THE TEAM • ADVERTISE WITH US! Call Bill Brennan • Sales Manager today at 570.207.8547 WEEKDAY LINEUP ESPN Morning Show (6-10AM) — This is undisputedly America’s finest morning sports-talk show. Hosted by Mike Golic and ESPN/ESPN News Anchor Mike Greenberg. The Tony Kornheiser Show (10AM-1PM) — Kornheiser is a top Washington Post journalist and a well-known sports radio personality. The Dan Patrick Show (1-4PM) — The Dan Patrick Show features interviews with newsmakers and celebrities, appearances by ESPN commentators, reporters and analysts, and a breakdown of the days hot topics with Patrick and his on-air sidekick Rob Dibble. ESPN Game Day (4-7PM) — Host Doug Brown runs down the day’s sports headlines, chats with bigname newsmakers and ESPN analysts, and previews the evening’s upcoming games. ESPN Game Night (7PM-MID) — Live hosts will report all game results. They’ll give you live on-scene reports, previews, analysis, reviews and interviews with the day’s top newsmakers. wejl-wbax.com 56 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 Daniel Fedor. Property location: Waverly. Seller: John Morano. Price: $290,000. Joseph Saccon. Property location: Moosic. Seller: Glenmaura. Price: $269,000. Greg Potochnick. Property location: Moscow. Seller: 1st Heritage Financial. Price: $330,000. University of Scranton. Property location: Scranton. Seller: Flo Rossi. Price: $300,000. Stephen Brosky. Property location: Old Forge. Seller: S. Paranich. Price: $275,000. Chaudhari Family Ltd. Property location: Dunmore. Seller: M. Glassman. Price: $890,000. University of Scranton. Property location: Scranton. Seller: I. Nudelman. Price: $395,000. George Milarck. Property location: Archbald. Seller: G.F. Errigo. Price: $234,000. Kevin Hamel. Property location: Gouldsboro. Seller: J. Lukaszewski. Price: $399,000. Luzerne County Alan Ryder. Property location: Butler Township. Seller: Samuel Perta. Price: $249,900. Curtis Mattingly. Property location: Jackson Township. Seller: Heritage Hills Estates Inc. Price: $350,000. Voitek TV Sales and Service. Property location: Kingston Borough. Seller: Luzerne Co. Industrial Authority. Price: $227,000. Stephen Rosenthal. Property location: Kingston Borough. Seller: Glenn Panzer. Price: $209,000. Jeffrey Trumm. Property location: Kingston Borough. Seller: Terry Niemuth. Price: $279,000. Auto Properties. Property location: Plains Township. Seller: MW Land Inc. Price: $13,300,000. William Dacey. Property location: Wright Township. Seller: John Gardner. Price: $290,000. Frederick Thompson. Property location: Butler Township. Seller: Sand Springs Development. Price: $240,000. Thomas Hanson. Property location: Dallas Borough. Seller: Michael Duncan. Price: $370,000. Gregory Zumchak. Property location: Dallas Township. Seller: Patrick Deats. Price: $226,000. Robert Hines. Property location: Fairview Township. Seller: Douglas Paull. Price: $241,500. Thomas Hamill. Property location: Kingston Borough. Seller: Carl Charnetski. Price: $293,500. Steven Letts. Property location: Kingston Township. Seller: Walter Boris. Price: $410,000. Steven Distasio. Property location: Wright Township. Seller: Evergreen Hill Estates Inc. Price: $249,000. James Culhane. Property location: Wright Township. Seller: David Coldwell. Price: $257,500. George Mehalshick. Property location: Black Creek Township. Seller: Joseph Bott. Price: $300,000. Augustus Diana. Property location: Dallas Township. Seller: Phillip Kindler. Price: $212,000. Chris Heiberg. Property location: Fairview Township. Seller: Daniel McIntire. Price: $315,000. Smejj Inc. Property location: Hazle Township. Seller: Mary Louise Wright. Price: $650,000. Mark Kingston. Property location: Kingston Borough. Seller: John Kropp. Price: $660,000. Mark Kingston. Property location: Kingston Borough. Seller: Robert Blasé. Price: $200,000. Northern Realty. Property location: Kingston Borough. Seller: Louis Domiano. Price: $265,000. Jeffrey Trumm. Property location: Kingston Borough. Seller: Terry Niemuth. Price: $279,000. Samuel Perta. Property location: Larksville Borough. Seller: Robert Gill. Price: $215,000. Karyn Hilderbrand. Property location: Larksville Borough. Seller: Michael Duda. Price: $237,000. Randall Walsh. Property location: Ross Township. Seller: Lester Lynn. Price: $234,000. Auto Properties. Property location: Wilkes-Barre. Seller: MW Land Inc. Price: $13,300,000. Richard Uter. Property location: Butler Township. Seller: Sand Springs Development Corp. Price: $230,355. Terrance Herron. Property location: Dallas Borough. Seller: Donald Rood. Price: $245,000. Philip Pecuch. Property location: Duryea Borough. Seller: Healey Development Co. Price: $220,000. Michael Blazick. Property location: Fairview Township. Seller: Steven Griffin. Price: $264,000. Carl Charnetski. Property location: Harveys Lake Borough. Seller: Ivar Berg. Price: $335,000. Robert Sabella. Property location: Harveys Lake Borough. Seller: James Miles. Price: $250,000. Ganija Vucetovic. Property location: Hazleton City. Seller: Edward Tenetti. Price: $350,000. Andrea Sordoni. Property location: Jackson Township. Seller: David Dillon. Price: $540,000. Gwen Galasso. Property location: Jenkins Township. Seller: Lamar Moll. Price: $310,000. John Nardone. Property location: Lehman Township. Seller: Frank Svec. Price: $420,000. Michael Ell. Property location: Nanticoke City. Seller: Henry Wasilewsi. Price: $240,000. Carl Kotch. Property location: Sugarloaf Township. Seller: Randy Ervin. Price: $ 225,000. Scott Nicholson. Property location: Swoyersville Borough. Seller: Howard Klein. Price: $285,000. Monroe County Martin Sagofsky. Property location: Jackson Township. Seller: Meadow Run Builders Inc. Price: $440,000. Todd and Donna Levitt. Property location: Pocono Township. Seller: Audrey and Thomas Barr Sr. Price: $255,000. Michael and Tracey Casavant. Property location: Jackson Township. Seller: Mark and Rosemarie Wingertzahn. Price: $295,000. Violet Kata. Property location: Middle Smithfield Township. Seller: August and Julia Merlina. Price: $292,500. Taykut and Tulin Aydin. Property location: Pocono Township. Seller: Gaby Barriga. Price: $283,000. Eddie and Mary Vanderhoof. Property location: Stroud Township. Seller: Richard and Lorna David. Price: $468,000. Mountain Manor Inn Inc. Property location: Smithfield Township. Seller: Robert Shinaman. Price: $40,000. Ridge Top Village Owners Assn. Inc. Property location: Smithfield Township. Seller: Travel Marketing INC. (by sheriff). Price: $1,384.67. Chelsea Pocono Holdings LLC. Property location: Pocono Township. Seller: Outletter Associates LP, Crossings Factory Stores LLC, Insalaco Pocono Inc. Price $114,880,000 and $50,000. NE Burger & Sons Inc. Property location: Polk Township. Seller: New 1901 Corp. Price: $15,000. Eileen and Steven Siegel Sr. Property location: Hamilton Township. Seller: Wayne and Jacklynn Willet. Price: $265,000. Relocation Resources International Inc. Property location: East Stroudsburg. Seller: Timothy and Michelle Harrigan. Price: $269,000. Ashleigh and Bina Dani. Property location: East Stroudsburg. Seller: Relocation Resources International Inc. Price: $269,900. 1723 West Main Street LP. Property location: Hamilton Township. Seller: Edward Koehler. Price: $260,000. Thomas and Eileen McPartland. Property location: Middle Smithfield Township. Seller: John McGowan and Sons Inc. Price: $200,000. Christopher Stockley. Property location: Middle Smithfield Township. Seller: Toll PA III LP. Price: $536,917. Michael Logan. Property location: Smithfield Township. Seller: C&M Homes at Shawnee LP. Price: $352,210. Floyd and Phyllis Halley. Property location: Stroud Township. Seller: Elias and Karen Morales. Price: $272,000. Six Eleven Development Corp. Property location: Mount Pocono. Seller: Monto Vision Realty Inc. Price: $650,000. Laurie and Robert Miller Jr. Property location: Stroud Township. Seller: Wendy O’Malley. Price: $365,000. James Anastasio. Property location: Tobyhanna Township. Seller: Gertrude Kerrick. Price: $575,000. East Stroudsburg School District. Property location: East Stroudsburg. Seller: Rosemarie and James Walker Sr. Price: $285,000. Jon and Mary Miller. Property location: Hamilton Township. Seller: George and Lori Osmun. Price: $350,000. Abdullha Juya. Property location: Hamilton Township. Seller: Mark and Catherine Burstein. Price: $300,000. Daniel and Joyce Herring. Property location: Tobyhanna Township. Seller: David and Inna Elvashvili. Price: $450,000. Vickiann and Jeffery Hicks. Property location: Stroudsburg. Seller: Stanley Zuba, David Prosser and Sue Steinberg (part.). Price: $380,000. Armando Garcia. Property location: Ross Township. Seller: Deck Creations Inc. Price: $257,000. Juan and Rafaelina Caraballo. Property location: Stroud Township. Seller: Troy and Mary Nauman. Price: $294,000. Richard and Lisa Bye. Property location: Stroud Township. Seller: John and Christine Reehl. Price: $310,000. Charles and Anne Hughes. Property location: Jackson Township. Seller: Nasser Sabokbar. Price: $262,000. Diane and Mark Cloeren. Property location: Middle Smithfield Township. Seller: Robert Gregoire. Price: $280,000. Lisa and Arthur Berry III. Property location: Stroudsburg. Seller: Anthony Akoury Est., William Morgan (Admr.). Price: $227,500. Robert and Marianne Nichols. Property location: Eldred Township. Seller: Alejandro Ortiz, Silvia Isaacs-Ortiz. Price: $287,000. Gary and Suzanne Campbell. Property location: Stroud Township. Seller: Richard and Barbara Mayer. Price: $282,500. Joseph and Tonia O‘Connor. Property location: Ross Township. Seller: Dwayne and Lori Duke. Price: $269,000. James and Barbara Roberts. Property location: Barrett Township. Seller: June and Harry Derby III. Price: $375,000. Donald and Rose Casey. Property location: Coolbaugh Township. Seller: George and April Verity. Price: $420,000. Wenshi Zhao and Jie Yu. Property location: Middle Smithfield Township. Seller: John McGowan and Sons Inc. Price: $325,000. Pike County Paul Forte. Property location: Hawley. Seller: Richard Schroeder. Price: $350,000. Evan Juro. Property location: Matamoras. Seller: Jeanne Reggio. Price: $200,000. Henryk Lodziato. Property location: Shohola. Seller: Dennis Heimbrook. Price: $300,000. Richard Cohen. Property location: Hawley. Seller: Charles Zimnik. Price: $242,500. Bonnie Zilenziger. Property location: Lords Valley. Seller: Paul Matarazzo. Price: $217,000. Gary Molampy. Property location: Hawley. Seller: Charles Schmalzle. Price: $259,900. Peter Dispenza. Property location: Hawley. Seller: William Curry. Price: $260,000. Peter Helms. Property location: Hawley. Seller: Albina Thoma. Price: $550,000. Jeffrey Drumheller. Property location: Milford. Seller: Joseph Lapera. Price: $239,000. Emrie Foster. Property location: Milford. Seller: Harlan Coben. Price: $345,000. Schuylkill County Oaks Gun Club, Inc. Property location: South Manheim Township. Seller: Donald Moyer. Price: $5,946. Robert Allen. Property location: Orwigsburg. Seller: Cedant Mobility Financial Co. Price: $254,000. Medical Plaza Partners. Property location: Pottsville. Seller: Pottsville Hospital and Warne Clinic. Price: $588,020. Pinebrook Residence. Property location: West Brunswick Township. Seller: Brookside Court Property Inc. Price: $200,000. Wayne County James DeLisi. Property location: Paupack. Seller: Timothy Congdon. Price: $565,500. James Cleary. Property location: Preston. Seller: Theta Land Corp. Price: $400,000. Keith Heilner. Property location: Lehigh. Seller: Warner Lent. Price: $380,000. Bruce Covey. Property location: Salem. Seller: Bruce Covey. Price: $340,346. Bruce Covey. Property location: Salem. Seller: Bruce Covey. Price: $230,000. Danuta Piwinska. Property location: Paupack. Seller: Alfred Marvin. Price: $245,000. Thomas Seyfarth. Property location: Salem. Seller: Joseph Marsico. Price: $295,000. Mary Grieve. Property location: Honesdale. Seller: Orley Mae White. Price: $220,000. Joseph Ghartey. Property location: Damascus. Seller: David Winner. Price: $405,000. Miles Scott Krieger. Property location: Preston. Seller: Carol Severs. Price: $277,000. James Tennant. Property location: Salem. Seller: Robert Halter. Price: $300,000. John Catrombon. Property location: Paupack. Seller: Charles Jurgensen. Price: $210,000. Waymart Wind Farm. Property location: Clinton. Seller: Russell Bass. Price: $230,000. Francis Henofer. Property location: Paupack. Seller: Candace Cianni. Price: $535,000. Stephen Paroby. Property location: Paupack. Seller: Elizabeth Novak-Wiggal. Price: $220,000. Stephen Putzi. Property location: Honesdale. Seller: John Weidner. Price: $350,000. Thomas Grozalis. Property location: Paupack. Seller: Leroy Wensel. Price: $430,000. George Brown. Property location: Oregon. Seller: Kent Brown. Price: $200,000. Joseph Hyer. Property location: Lake. Seller: Benjamin Franc. Price: $345,000. Frank Mina. Property location: Lake. Seller: Gary Gardner. Price: $308,000. Michael DeFex. Property location: Paupack. Seller: Arthur Lewis. Price: $255,000. december 2003 Peter Barone. Property location: Ross Township. Seller: Ricardo and Ginette Malinaro. Price: $255,000. Demmac LLC. Property location: Middle Smithfield Township. Seller: Fox Glen Apartments Inc. Price: $1,625,000. Michael and Vanessa Petrozzino. Property location: Jackson Township. Seller: Larry Buck. Price: $250,000. 940 Commercial Inc., n/b/n/c Hill Farm Estates Inc. Property location: Ross Township. Seller: Kelly Lewis. Price: $500,000. Alicia Sanders. Property location: Middle Smithfield Township. Seller: Bank One NA. Amount: $265,000. Bradford Moses and Mary Possi. Property location: Coolbaugh Township. Seller: C. Herbert and Judy Schneider. Price: $305,000. Dilcia Phillips and Valerie Gowie. Property location: Hamilton Township. Seller: Vladimir, John and Anthony Melchiori. Price: $425,000. Paul Mason. Property location: Stroud Township. Seller: Matthew and Jacqueline Donovan. Price: $305,000. National Residential Nominee Services Inc. Property location: Stroud Township. Seller: Michael and Tracey Tanner. Price: $309,000. Kevin and Roxanne Hutchinson. Property location: Stroud Township. Seller: National Residential Nominee Services Inc. Price: $309,000. Theodore and Christine Auman. Property location: Barrett Township. Seller: John and Adelaide Bisbee. Price: $1,050,000. Herb and Denise Grainer. Property location: Smithfield Township. Seller: Karen Young. Price: $339,000. Wayne Dunlop and Lori Riede-Dunlop. Property location: Paradise Township. Seller: Arthur Evans and Carolyn Allen-Evans. Price: $259,700. William and Eva Pither. Property location: Pocono Township. Seller: Robert and Louise Szeligowski. Price: $410,000. Frederick and Alice Berthel. Property location: Chestnuthill Township. Seller: Glenn and Janet Tirpak. Price: $275,000. Ramis and Tatiana Gimadeyer. Property location: Hamilton Township. Seller: Steven and Terri Ewing. Price: $599,999. Kenbar Investment Group. Property location: Smithfield Township. Seller: W. Peter Ahnert Jr., Abigail Ahnert, Emily Ahnert and Robert Ahnert II. Price: $631,250. Patricia Clifford. Property location: Ross Township. Seller: Deck Creations Inc. Price: $259,025. Brenda Leonard. Property location: Ross Township. Seller: Deck Creations Inc. Price: $296,900. Bruce and Marianne Brandli. Property location: Middle Smithfield Township. Seller: Frank and Alice Manhart. Price: $500,000. Fred and Janice Fantuzzi. Property location: Chestnuthill Township. Seller: LTS Development Inc. Price: $299,000. Robert and Laura Howe. Property location: Tobyhanna Township. Seller: Joseph and Temi Miller. Price: $465,000. Paul and Susan Miller. Property location: Hamilton Township. Seller: Elaina and Charles Prinzivalli. Price: $415,000. Christy Mara. Property location: Jackson Township. Seller: International Custom Built Homes Inc. Price: $395,000. Bradley Miller. Property location: Coolbaugh Township Seller: Frank and Linda Gleva. Price: $340,000. Michael and Roseanne Walters. Property location: Barrett Township. Seller: Louis and Ingrid Larsen. Price: $712,500. Ronald Baumann. Property location: Chestnuthill Township. Seller: Michael Stokes. Price: $655,000. James Ertle. Property location: Stroud Township. Seller: Lola Wary. Price: $295,000. 20 40 under Wyoming County Bruce Gendron. Property location: Tunkhannock Township. Seller: James Faerber. Price: $340,000. John Romero. Property location: Tunkhannock Borough. Seller: Sally Steele. Price: $200,000. Lavere Stiles. Property location: Eaton Township. Seller: Duwayne Kutz. Price: $365,000. Michael Stoko III. Property location: Overfield Township. Seller: Richard Lahey. Price: $495,000. Earnings For the 2003 second quarter, CTE reported diluted earnings per share (“EPS”) of $0.64, versus reported diluted EPS of $0.60 in the 2002 second quarter. Included in CTE’s 2003 second quarter reported diluted EPS is a $1.5 million (pre-tax), or $0.04 per share (after-tax), charge reflecting legal and financial advisory expenses in connection with CTE’s proposed recapitalization, which was announced on April 25, 2003. CTE’s 2002 second quarter reported diluted EPS included the effect of a $2.0 million (pre-tax) charge, or $0.05 per share (after-tax), related to the impairment of WorldCom receivables, and a $2.1 million (pre-tax), or $0.05 per share (after-tax), positive settlement in connection with CTE’s 2000 restructuring charge. CTE ended the 2003 second quarter with a total of 473,375 switched access lines installed, reflecting an increase of 18,437 switched access lines installed in the past 12 months, or a growth rate of 4 percent. CTE’s consolidated revenues in the 2003 second quarter were $83.0 million, a growth rate of 6 percent versus the 2002 second quarter. The 2002 second quarter consolidated revenues of $78.3 million included a $2.0 million charge in connection with WorldCom receivables. CTE’s consolidated operating income in the 2003 second quarter was $25.2 million, which reflected a 4 percent growth rate versus last year’s second quarter. CTE’s 2002 second quarter operating income of $24.1 million reflected both the aforementioned $2.0 million pre-tax WorldCom charge against revenues, as well as the aforementioned $2.1 million pre-tax positive settlement related to CTE’s 2000 restructuring charge. For the 2003 second quarter, CTE reported net income of $15.2 million, versus reported net income of $14.1 million in the 2002 second quarter. Consolidated capital expenditures (“CAPEX”) were $12.1 million in the 2003 second quarter, versus CAPEX of $14.0 million in the year ago quarter. Commonwealth Telephone Company (“CT”) had a total of 338,340 switched access lines installed at the end of the 2003 second quarter – a growth rate of 1 percent versus last year. CT’s residential additional line penetration was 40 percent at the end of the quarter. CT’s business line growth in The Business Journal Wants To Showcase Our Area’s Best And Brightest! In December, the Northeast Pennsylvania Business Journal will produce a special section in our publication on our region’s best and brightest - our “Top 20 Under 40.” We are looking for readers to nominate a business owner, entrepreneur or senior-level company official to be spotlighted. The individuals we seek to honor must be 39 years of age or younger and play a decision-making role in a business or organization. To nominate yourself or someone else, simply go to the Business Journal website at www.npbj.com and click on “20 Under 40” for a nomination form. Or mail your nomination to the Business Journal at 149 Penn Avenue, Scranton, PA 18503. Be sure to include the name of the nominee, his or her position in the company, age, and why he or she should be honored. If you are nominating someone else, include your name and contact information. Publication Date..............................................December 2003 Nomination Deadline.....................................October 15, 2003 To advertise in this special supplement... Ad Deadline...................................................November 7, 2003 149 Penn Avenue, Scranton, PA 18503 Call 570-207-9001 Toll Free 1-877-584-3561 Fax 570-207-3452 Continues on next page NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 57 the 2003 second quarter was 3 percent versus the 2002 second quarter. CT’s 2003 second quarter revenues grew 8 percent to $51.2 million, versus revenues of $47.5 million in the 2002 second quarter. The 2002 second quarter revenue figure reflects a $2.0 million charge in connection with WorldCom receivables. CT’s second quarter revenue growth was primarily driven by increased access minutes of use, rate changes in the NECA (National Exchange Carrier Association) average schedule settlement formula that took effect in July 2002, and 6 percent growth in enhanced services. CT’s 2003 second quarter operating income was $23.1 million, a 22 percent increase over last year. This solid growth in operating income was primarily driven by growth in high-margin access revenues, continued focus on cost control and the impact of the $2.0 million WorldCom receivables charge, which is included in CT’s 2002 second quarter results. CT’s 2003 second quarter CAPEX were $5.9 million versus $8.0 million in the 2002 second quarter. The change in CAPEX is substantially due to timing. CTSI, LLC (“CTSI”), during the 2003 second quarter, CTSI installed 4,453 net access lines, ending the quarter with 135,035 net access lines installed – a growth rate of 13 percent versus the 2002 second quarter. At the end of the 2003 second quarter, 98 percent of CTSI’s access lines were “on-switch,” and 52 percent were “on-net” (defined as 100 percent on CTSI’s owned network). CTSI’s business/residential line split at the end of the 2003 second quarter was 90 percent/10 percent. CTSI’s 2003 second quarter revenues were $21.5 million, a growth rate of 1 percent versus revenues of $21.3 million in the 2002 second quarter. This relatively flat growth rate was expected due to several factors that affected the quarterover-prior-year-same-quarter access revenue comparison at CTSI, including a modification to transport billings related to access trunking in last year’s third quarter, the continued implementation of the Federal Communications Commission’s (“FCC”) mandated interstate access rate reduction and further implementation of the FCC Order related to local reciprocal compensation. CTSI’s operating income in the 2003 second quarter was $2.5 million, versus operating income of $5.3 million in the 2002 second quarter. CTSI’s 2002 second quarter operating income included a $2.1 million positive settlement in connection with CTE’s 2000 restructuring charge. CTSI’s 2003 second quarter capital expenditures were $5.6 million, versus $5.4 million in the year ago quarter. Northeast Pennsylvania Financial Corp. (the "Company") (NASDAQ: NEPF), the holding company for First Federal Bank (the "Bank"), reported a net loss of $1.1 million, or $(.28) diluted earnings per share, for the three months ended June 30, 2003, which was a decline from the prior year comparable quarter net income of $944,000, or $.22 diluted earnings per share. All prior period amounts set forth in this release reflect the anticipated restatement of the financial results for those prior periods as discussed below. The decline was primarily due to: ■ a $520,000 reduction in non-interest income due to the recognition of a $1.5 million impairment loss related to an equity investment by the Company, partially offset by a $980,000, or 44%, increase in other non-interest income; ■ a $974,000 decline in net interest income as a result of an 18 percent decline in the net interest margin from 2.98 percent to 2.44 percent; ■ a $124,000 increase in the provision for loan losses due to an increase in classified loans; and ■ a $107,500 impairment loss in connection with the closure of three bank offices as of July 1. The reported net loss for the June 2003 quarter was also a decline from the $1.0 million net income, or $.26 diluted earnings per share, for the quarter ended March 31, 2003. The decrease was due to: ■ a $240,000 increase in the provision for loan losses due to an increase in classified loans; ■ gains realized in the restructure of the investment portfolio in the March quarter of $1.1 million (pre-tax) versus the pre-tax gains realized in the June quarter of $386,000 for continued restructure of the investment portfolio and a partial restructure of the adjustable rate mortgage portfolio; ■ the recognition of the $1.5 million impairment loss for an equity investment; and ■ the $107,500 impairment loss related to the July 2003 office closings. The net interest margin for the June 2003 quarter of 2.44 percent was approximately the same as the 2.43 percent net interest margin for the March 2003 quarter. Net income for the nine months ended June 30, 2003 was $643,000, or $.16 diluted earnings per share, compared to $3.0 million, or $.69 diluted earnings per share for the previous fiscal year period. This decline in net income was a result of the $3.0 million, or 16 percent, contraction in net interest income due to a decline in the net interest margin from 3.12 percent to 2.46 percent, the $1.5 million impairment loss on the equity investment and a $2.8 million increase in operating expenses as a result of the new branding campaign and staffing and occupancy increas- es. The decline was partially offset by a $139,000, or 7 percent, reduction in the provision for loan losses, $1.2 million more from gains on sales of investments and loans as well as increases in fees generated from the banking, insurance, investment and trust lines of business. On July 21, 2003, the Company announced it was restating its prior period earnings for the fiscal years from 1998 through 2002 and for the December 2002 and March 2003 quarters to correct errors in the accounting for the indirect auto loan portfolio and purchased mortgage and consumer loan portfolios. E. Lee Beard, president and CEO, noted that the recently identified errors resulted primarily from computer program coding errors that impacted the calculation of interest income earned on the indirect auto loans and from the amortization of the premiums related to purchased mortgage and consumer loans. The earnings discussed throughout this release reflect the proper interest earned rates for these loans. The Company is in the process of preparing an amended form 10-K for fiscal year 2002 and forms 10-Q for the December 2002 and March 2003 quarters. Until such amendments, including restated financial statements, are filed, the Company's previously filed periodic annual and quarterly reports, including financial statements and auditor's reports thereon, should not be relied upon. The anticipated effect of the restatements is to reduce the Company's capital by $3.2 million as of March 31, 2003. This restatement has no impact on the Company's or the Bank's cash flows and the Bank continues to be well-capitalized under regulatory capital requirements. At June 30, 2003, the total tier-1 capital ratio for the Bank was 6.69 percent and total capital to assets was 7.30 percent for the company. The accounting errors do not impact any loan customers. The Bank's deposits continue to be insured by the FDIC. Management affirmed that the accounting errors that led to the restatement were unintentional. Steps have been taken to ensure that no other similar system errors have occurred. Staffing, system and procedural changes are being made to ensure such errors do not occur in the future. As part of these changes, the Company hired Jerry Holbrook as interim CFO and engaged The Outsourcing Partnership LLC to provide internal audit services. Holbrook previously served as CFO for E-Duction Inc., SVP for First USA Bank and as Controller for WSFS Financial Corp. Net interest income for the current quarter decreased $974,000, or 16 percent, over the prior year comparable quarter. The decrease reflects a 53 basis point decline in the yield on the mortgage portfolio, due to payoffs of higher yielding loans and generally lower interest rates on originated loans, and a 163 basis point decrease in the yield on investments. The decrease in interest income for the quarter was partially offset by a lower cost of deposits due to the current low interest rate environment. Since June 2002, the Bank has increased transaction accounts by 31 percent, to 40 percent of total deposits, in an effort to decrease the reliance on higher-rate time deposits. The Company has $15 million in outstanding Trust Preferred Securities (TRUPs) with an interest rate floating with the three-month LIBOR and $7 million outstanding with an interest rate floating with the six-month LIBOR. The $22 million of TRUPs added $267,000 to interest expense for the June 2003 quarter. The Company used a portion of the TRUPs proceeds to purchase $10 million of Bank Owned Life Insurance (BOLI) in April 2002, adding $133,000 of non-interest income during the June 2003 quarter and $445,000 during the nine months ended June 30, 2003. The earnings rate on the BOLI adjusts annually in April and was reduced by 1.00 percent on April 3, 2003. Net interest income and net interest margin for the three months ended June 30, 2003 were basically comparable to the March 2003 quarter. This was accomplished in the face of generally declining interest rates with a combination of an increase in the higher yielding consumer loan portfolio balances, a reduction in the cost of deposits and the stabilization of cash flows from the investment portfolio restructuring that began in the March 2003 quarter. The fiscal year-to-date net interest income declined $3.0 million compared to the nine month period ended June 30, 2002, primarily due to the 124 basis point reduction in the yields on the earning assets, mortgage payoffs and an increase in borrowed funds. The reductions were partially offset with declines in costs of deposits and an increase in the investment securities portfolio balances. The provision for loan losses for the current quarter increased by $124,000, to $850,000, compared to the three months ended June 30, 2002 and increased by $240,000 from the quarter ended March 31, 2003. The increase was primarily attributable to additional reserves established for the increase in classified loans. The ratio of allowance for loan losses to net loans increased to 1.15 percent, compared to 1.00 percent at June 30, 2002 and 1.06 percent at March 31, 2003. At June 30, 2003, non-performing assets increased by $2.1 million to $6.9 million, or .78 percent of total assets, compared to $4.8 million, 58 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 or .53 percent at September 30, 2002 and from the $5.0 million or .55 percent level at March 31, 2003, primarily due to a $1.7 million commercial loan that went into bankruptcy. The Bank has previously written off $100,000 of this loan, has established additional reserves and believes this loan is adequately collateralized by the U.S. Dept. of Agriculture and other collateral. Total delinquencies as of June 30, 2003 for retail mortgage loans, consumer (other than auto), and auto loans were 1.24 percent, 2.23 percent and 0.95 percent of total loans, respectively. Net loan charge-offs were $672,000 for the quarter ended June 30, 2003, compared to net loan charge-offs of $879,000 for the quarter ended June 30, 2002 and $515,000 for the quarter ended March 31, 2003. Net loan charge-offs increased during the quarter due to a change in the method of recognizing impairment loss at the time it becomes 90 days delinquent instead of at the time of foreclosure. Net loan charge-offs, as a percentage of total loans for the current quarter, were 13 basis points and for the fiscal year-to-date were 31 basis points. Non-interest income for the current quarter decreased $520,000, or 23 percent, over noninterest income for the prior year comparable quarter due to the Company's recognition of the $1.5 million impairment loss for its equity investment in convertible preferred stock in a start-up mortgage banking firm specializing in multi-state, small builder loans. The Company purchased $2 million of convertible preferred stock in the company in fiscal 2000. Pre-tax losses of $500,000 had been recognized by the Company previously. The lending firm continues to operate with historical highs in loan commitments; however, efforts to raise additional equity capital have proven unsuccessful and the company's contract with an investment banker expired during the quarter. The Bank's loans originated through the program have been fully repaid with no losses. The Bank is no longer a lender in this program. Additionally, no tax benefit has been recognized for the impairment loss due to a lack of expected future capital gains. The Company holds no other similar investments.Total non-interest income accounted for 13 percent of interest income plus non-interest income (gross revenue) for the June 2003 quarter and 19 percent of gross revenue for the nine months ended June 2003. Non-interest income was $8.1 million for the nine months ended June 30, 2003, compared to $5.4 million for the comparable nine-month period ended June 30, 2002 as the current period reflected $1.5 million gain-on-sale of securities and loans, as well as increased fee income earned from the banking, insurance, investment and trust lines of business. The prior year period included $332,000 of gain on sale of $50 million of indirect auto loans. The cross sales to customers among the lines of business has enhanced the service fee, insurance, investment and trust related non-interest income. Non-interest expense increased $800,000, or 13 percent, for the quarter ended June 30, 2003 compared to the quarter ended June 30, 2002 and $231,000, or 4 percent, compared to the quarter ended March 31, 2003. The increase from the June 2002 quarter was primarily due to increased staffing for business development, a $107,500 impairment loss (on a pre-tax basis) recognized in relation to the pending sale of two free-standing bank offices closed on as of July 1, 2003 and increased occupancy costs as a result of the addition of three offices purchased from Schuylkill Savings in January 2002. The fiscal year-to-date non-interest expenses for the nine months ended June 30, 2003 increased 16 percent over the prior year comparable period, as a result of increases in staffing, the impairment loss related to the sale of closed offices and occupancy expenses associated with the acquisition of offices from Schuylkill Savings in January 2002, as well as the increases in marketing costs for the new branding campaign. Penn National Gaming Inc. (Nasdaq: PENN) reported record second quarter results for the period ending June 30. The 2003 second quarter GAAP operating results are in line with the revised financial guidance issued by the company on June 10. Penn National’s 2003 second quarter diluted earnings per share without Hollywood Casino-Shreveport were $.47, ahead of the revised financial guidance of $.45 issued by the company on June 10 and exceeding the First Call analyst consensus estimates. Net revenues for the quarter rose 98 percent to $325 million, compared to $164.1 million in the second quarter of 2002. Net income and diluted per share earnings computed in accordance with generally accepted accounting principles rose to $15.5 million, or $.38 per diluted share in the second quarter of 2003 from $9.2 million or $.23 per diluted share in the second quarter of 2002. Excluding a pre-tax charge of $3 million, or $.05 per share after tax, for loss on fair value of interest rate swaps, adjusted earnings per share for the second quarter of 2002 was $.28. Second quarter 2003 EBITDA rose 98.6 percent to $71.7 million, from $36.1 million in the second quarter of 2002. Income from operations in the second quarter of 2003 rose 95.9 percent to $52.8 million, from $27 million in the second quarter of 2002. Per share results are based on 40.5 million and 40 million diluted weight average shares outstanding for the 2003 and 2002 periods, respec- tively, and have been adjusted to reflect the June 2002 two-for-one stock split. Grants The Blue Ribbon Foundation of Blue Cross of Northeastern Pennsylvania announced it is seeking opportunities to partner with nonprofit organizations that are interested in creating and implementing obesity prevention and intervention programs in the 13 counties of northeastern and northcentral Pennsylvania. The Blue Ribbon Foundation has committed $500,000 over a three-year period toward fighting obesity through its “well weighs” initiative. Grants of up to $75,000 will be distributed to several projects that integrate long-term nutritional, physical, behavioral and/or medical interventions to promote healthy lifestyle behaviors, eating habits and increased physical activity as part of a person’s daily life. Nonprofit organizations that are interested in “well weighs” can express their desire to participate by submitting a letter of interest to the foundation. Letters will be accepted until September 15 and should include a description and general overview of the proposed project, including goals, objectives, expected outcomes and process measures with a defined mechanism for reporting health outcomes; a copy of the resume or curriculum vitae of those responsible for implementing and evaluating the program; an estimate of funds needed for the project, and IRS certification of tax-exempt, charitable status. The foundation will review letters of interest and several applications will be selected to submit more detailed, formal proposals by December 1. A pre-proposal conference will be held to provide technical assistance and feedback to the prospective applicants that are identified through the letter of interest process. Grants will be awarded to support the development and implementation of innovative programs beginning January 2004. Subsequent annual payments will depend on continued satisfactory progress toward goals. The Williamsport-Lycoming Foundation, the 86year-old foundation serving Lycoming County and the surrounding region, approved nearly $50,000 in grant funding during its recent mini-grant cycle. The Williamsport-Lycoming Foundation board approved $48,325 in grant funding from the unrestricted funds available to support initiatives benefiting residents of Lycoming County to the following organizations: American Rescue Workers, $10,000 grant to support the revitalization renovation project to update and renovate the facility that provides emergency shelter and houses male residents in an effort to help them rise above their current situations; Bethesda Day Treatment Center, $5,000 grant to provide funding to purchase program materials and equipment for the Montoursville facility, which provides specialized education and counseling for adolescents; Curtain Middle School PTO, $6,000 grant to assist with the restoration and conservation of 20 locally designed murals depicting Longfellow’s poem, “Hiawatha,” so that they may once again be displayed in the school and the community; Jersey Shore Public Library, a grant of up to $4,192 to purchase four computers that have the capacity to accommodate the newer educational software for the children’s section of the library; Kiwanis Club of Williamsport, $6,735 grant to construct a second modern restroom facility and replace the roof on the main portion of the lodge at the Camp Kiwanis so it can continue to serve many youth groups; Lycoming County Health Improvement, $6,998 grant to support a youth survey that will help identify health-related risk factors in the community affecting the lives of area young people; this data will be available to other local agencies to guide efforts in meeting community needs; YMCA of Williamsport, $9,400 grant to provide support for an afterschool activity program (ASAP) with the goals of reducing childhood obesity, and educating both children and their parents about the risks associated with obesity. The WilliamsportLycoming Foundation’s next deadline for mini-grant and regular grant application submission is September 1. Potential applicants are strongly encouraged to call Debbie Mader Miller, manager of program and scholarship services, at 321-1500 to discuss potential requests before submitting an application. Steven A. Solieri, Ph.D., assistant professor of accounting at The University of Scranton, has received a $30,000 grant from the Research Foundation of the Institute of Internal Auditors to perform a field study entitled “Internal Audit’s Role in the Corporate Governance Process: Restoring the Public Trust in Accounting.” As a large part of this project, Solieri and his co-author, Andrew Felo, Ph.D., of Pennsylvania State University - Great Valley, will be visiting a number of Fortune 1000 companies and studying interactions between the internal audit function and the corporate governance structures of the companies. The project is scheduled for completion in March 2004. Solieri has completed four master’s degrees in business administration, manufacturing management, information systems, and accounting, and received his Ph.D. in management and accounting from Binghamton University. Solieri, Lake Ariel, has been a Certified Public Accountant for the past 18 years with a license to practice in four states. Congressman Don Sherwood announced two federal grants that have been awarded to Wayne Economic Development Corporation to fund feasibility studies for a proposed business park in Sterling Township, Wayne County. The federal funds, along with local contributions, will partially offset the cost of preliminary engineering and planning studies. These studies are needed to determine whether the organization will pursue the development of the business park. WEDCO president, Paul Lloyd, acknowledged the assistance given to WEDCO. “We are particularly grateful for the support we received from our federal legislators and the Northeastern Pennsylvania Alliance in helping us obtain these grants,” Lloyd said. "In the long run, this support will play a major role in bringing more jobs to our county. Wayne County is now a top priority in good, sound economic planning in the region." Visit the WEDCO Web site for further details at www.wedcorp.org/. The Pennsylvania Department of Conservation and Natural Resources (DCNR) has awarded a Conservation and Recreation Grant of $200,000 to SEDA-COG for continuation of Phase II of the Susquehanna Greenway plan. The Greenway, an interconnected network of natural and cultural resources, scenic trails, community parks, and recreation facilities, is being developed along the entire 500-mile length of the river in Pennsylvania. SEDACOG heads the Greenway planning team. Bloss Associates Inc. and Pennsylvania Environmental Council are lead consultants for Phase II contract work on greenway design, and community outreach and education, respectively. Phase II primarily involves development of a conceptual design and strategic action plan to implement the Greenway, serving as a guide for county planners, municipal officials, community groups, nonprofit organizations and others seeking to establish components of the project. The strategy will also address region-wide issues, as well as specific concerns that have been raised in the six planning areas (reaches) designated within the Greenway. Five general categories of the strategic plan are being considered including community, environment, economy, recreation, and public awareness. Topic areas may include funding, organizational options, operations and maintenance, and the integration of related transportation systems. Reach Advisory Committees (RAC) have been established in each of the Greenway area's six reaches. The RACs will be involved in developing specifics of the strategic plan, just as they have been involved in the initial design process of the Greenway. Mortgages Columbia County Lois A. Barrall. Property Location: Beaver Twp. Lender: Sky Bank. Amount: $227,200. Joseph A. and Lori A. Scopelliti. Property Location: Hemlock Twp. Lender: FNB Bank. Amount: $204,900. Robert R. and Karen J. Hergan. Property Location: Catawissa Twp. Lender: Mortgage Electronic Registration Systems Inc. Amount: $215,900. William R. and Lori A. Harding. Property Location: Bloomsburg. Lender: Manufacturers and Traders Co. Amount: $200,000. Steven J. and Rebecca A. Marks. Property Location: Montour Twp. Lender: Mortgage Electronic Registration Systems Inc. Amount: $215,000. Giuseppe and Edith A. Lafata. Property Location: Scott Twp. Lender: Columbia County Farmers National Bank. Amount: $239,000. Joseph M. and Diane D. Wondoloski. Property Location: North Centre Twp. Lender: FNB Bank. Amount: $322,700. John C. and Brenda J. Monick. Property Location: Orange Twp. Lender: First Federal Bank. Amount: $213,500. MSY Investments LLC. Property Location: Berwick. Lender: Sovereign Bank. Amount: $1,350,000. Guy E., Jr. and Kimberly S. Miller. Property Location: Berwick. Lender: First National Bank of Berwick. Amount: $275,000. Harry A. Campbell. Property Location: Sugarloaf Twp. Lender: Option One Mortgage Corp. Amount: $269,500. Douglas L. and Leslie W. Bryden. Property Location: Catawissa Twp. Lender: First Mutual Corp. Amount: $226,700. Brandon R. and Lynette M. Eyerly. Property Location: Scott Twp. Lender: Mortgage Electronic Registration Systems Inc. Amount: $200,000. Christopher R. and Christina M. Dorothy. Property Location: Scott Twp., Lender: FNB Bank. Amount: $230,400. SBA Properties Inc. Property Location: North Centre Twp. Lender: General Electric Capital Corp. Amount: $220,128,160. James and Ruth Hunter, Property Location: Greenwood Twp. Lender: Columbia County Farmers National Bank. Amount: $315,000. Robert N. Seebold. Property Location: Scott Twp. Lender: Manufacturers and Traders Trust Co. Amount: $460,000. Eric I. And Maryanne E. Weisel. Property Location: Scott Twp. Lender: Columbia County Farmers National Bank. Amount: $215,500. Robert M. and Joan P. Larney. Property Location: Scott Twp. Lender: PNC Bank. Amount: $282,000. Hervey A. and Deborah C. Gillespie. Property Location: Bloomsburg. Lender: Columbia County Farmers National Bank. Amount: $535,000. Thomas and Renee Hughes. Property Location: North Centre Twp. Lender: Citicorp Trust Bank. Amount: $233,108.85. Douglas P. and Patricia A. Evans. Property Location: Hemlock Twp. Lender: Columbia County Farmers National Bank. Amount: $223,000. Douglas P. and Patricia A. Evans. Property Location: Hemlock Twp. Lender: Columbia County Farmers National Bank. Amount: $277,500. Julie Kontos. Property Location: Scott Twp. Lender: First Federal Bank. Amount: $214,000. John and C. Luane Zaginaylo III. Property Location: Briarcreek Twp. Lender: AgChoice Farm Credit. Amount: $221,500. Kenneth E. and Melissa K. Chappell. Property Location: Greenwood Twp. Lender: Mortgage Electronic Registration Systems Inc. Amount: $200,000. Matthew W. and Susan L. Laidocker. Property Location: Greenwood Twp. Lender: Clair C. Hock. Amount: $360,000. Bloomsburg Center LLC. Property Location: Scott Twp. Lender: Fulton Bank. Amount: $5,500,000. Alfred H. and Colleen K. Stammers. Property Location: Scott Twp. Lender: FNB Bank. Amount: $220,000. Robert H. Ritter and Jamie Valerio. Property Location: Scott Twp. Lender: FNB Bank. Amount: $227,000. Monzer K. and Susan F. Mereby. Property Location: Cleveland Twp. Lender: FNB Bank. Amount: $207,000. Bart and Mary Rado. Property Location: Briarcreek Twp. Lender: First National Bank of Berwick. Amount: $378,000. Sept 03 Morts. Lackawanna County Jeric Partnership. Property location: Dickson City. Lender: 1st National Community Bank. Amount: $945,000. Frank Epifano. Property location: Gouldsboro. Lender: Wells Fargo Home Mortgage. Amount: $231,160. Kenneth Propst. Property location: Archbald. Lender: Fidelity Bank. Amount: $210,000. Downtown Senior Center. Property location: Scranton. Lender: Pennstar Bank. Amount: $250,000. MSA Inc. Property location: Clarks Summit. Lender: Peoples National Bank. Amount: $300,000. Jose De Los Rios. Property location: Dalton. Lender: Wells Fargo Bank. Amount: $240,000. Steamtown Mall Partners. Property location: Scranton. Lender: UBS Real Estate. Amount: $41,000,000. Paul Abdalla, Jr. Property location: Moscow. Lender: Community Bank. Amount: $300,000. Lang P Su. Property location: Clarks Summit. Lender: Pennstar Bank. Amount: $500,000. Bennett Winters. Property location: Moosic. Lender: Wells Fargo Bank. Amount: $650,000. Leonard Burke. Property location: Clarks Summit. Lender: 1st National Community Bank. Amount: $250,000. Joshua Olivo. Property location: Scranton. Lender: Peoples National Bank. Amount: $220,000. David Lowe III. Property location: Clarks Summit. Lender: America Wholesale. Amount: $235,000. Charles Mecca. Property location: Factoryville. Lender: American Home Loans. Amount: $274,000. David Botscheller. Property location: Factoryville. Lender: Penn Security Bank. Amount: $318,000. Donald Galacci. Property location: Clarks Summit. Lender: Wachovia Bank. Amount: $301,990. Gerald Evans. Property location: Clarks Summit. Lender: Community Bank. Amount: $360,000. Deborah Hamby. Property location: Dalton. Lender: Pennstar Bank. Amount: $220,000. Daniel Bunevitch. Property location: Moscow. Lender: Countrywide Home. Amount: $220,000. William Giovagnoli. Property location: Archbald. Lender: Peoples National Bank. Amount: $296,000. Daniel Fedor. Property location: Waverly. Lender: Bank of America. Amount: $230,000. Gerald O’Neill. Property location: Clarks Summit. Lender: Citizens Bank. Amount: $225,000. Joseph Root. Property location: Olyphant. Lender: Independent Mortgage. Amount: $263,245. Security National Properties.. Property location: Scranton. Lender: Alaska Seaboard. Amount: Continues on next page There are two local newspapers in Wilkes-Barre. And you’re looking at them. They’re the ONLY two newspapers you need ... to get complete coverage of world, national and local news. They’re the ONLY two newspapers you need ... for complete sports coverage of all your favorite sports. They’re the ONLY two newspapers you need ... to place your advertising in for the best results. TWO NEWSPAPERS FOR 7-DAY COVERAGE OF EVERYTHING YOU NEED: MONDAY THROUGH SATURDAY TO ADVERTISE CALL 821-2030 TO SUBSCRIBE CALL 821-2010 SUNDAY NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 59 $520,000. Joseph Saccon. Property location: Moosic. Lender: Merrill Lynch. Amount: $269,000. Anthony Brutico. Property location: Scranton. Lender: Community Bank. Amount: $340,000. Joyce Cornell. Property location: Clarks Summit. Lender: GMAC Bank. Amount: $258,000. John Conway, Jr. Property location: Dunmore. Lender: East Stroudsburg. Amount: $250,000. Thomas Capezio. Property location: Blakely. Lender: Fidelity Bank. Amount: $240,000. Richard Kenehan. Property location: Clarks Summit. Lender: Merrill Lynch. Amount: $433,200. Maple Lake United Methodist. Property location: Moscow. Lender: Penn Security. Amount: $450,000. Kevin Gilbride. Property location: Moscow. Lender: Community Bank. Amount: $300,000. James Bradley Flickinger. Property location: Clarks Summit. Lender: 1st National Community. Amount: $214,000. Gregory Martin. Property location: Moosic. Lender: 1st National Community. Amount: $282,000. Robert Burke. Property location: Dunmore. Lender: Fidelity Bank. Amount: $292,000. Michael Jalowiec. Property location: Clarks Summit. Lender: Penn Security Bank. Amount: $271,267. Kenmaro. Property location: Scranton. Lender: PNC Bank. Amount: $450,000. Thomas Florey. Property location: Clarks Summit. Lender: Penn Security Bank. Amount: $500,000. Thomas Florey. Property location: Newton. Lender: Penn Security Bank. Amount: $500,000. Thomas Florey. Property location: North Abington. Lender: Penn Security Bank. Amount: $500,000. Stephen Brosky. Property location: Old Forge. Lender: Guaranty Bank. Amount: $225,600. Thomas Hauber. Property location: Moscow. Lender: Bank of America. Amount: $300,000. Martin Andrews. Property location: Carbondale. Lender: Bank of America. Amount: $200,000. Chaudhari Family Ltd. Property location: Dunmore. Lender: 1st National Community Bank. Amount: $1,390,000. Steven Golden. Property location: Gouldsboro. Lender: Fleet National Bank. Amount: $209,000. Joseph Rinkunas. Property location: Clarks Summit. Lender: 1st Liberty Bank. Amount: $205,000. Francis Opshinsky. Property location: Dalton. Lender: Community Bank. Amount: $200,000. Theodore Meadows. Property location: Moosic. Lender: Decision One Mortgage. Amount: $295,000. Daniel Siniawa. Property location: Clarks Summit. Lender: 1st National Community. Amount: $225,000. Donato Mecca. Property location: Scranton. Lender: 1st National Community. Amount: $242,000. Nicholas Cortazzo. Property location: Moscow. Lender: Penn Security Bank. Amount: $203,000. Allison Uhrin. Property location: Old Forge. Lender: Flagstar Bank. Amount: $220,000. Luzerne County William Thede. Property location: Dallas Township. Lender: Allegacy FCU. Amount: $245,000. Jon Olenginski. Property location: Rice Township. Lender: Bank of America. Amount: $620,000. Hazleton Community New Development Organization. Lender: Butler Enterprises Inc. Amount: $1,638,132. Barry Santospirito. Property location: Fairview Township. Lender: Chase Manhattan Mortgage. Amount: $262,500. Ronald Sturgeon. Property location: Wright Township. Lender: Citizens Bank. Amount: $230,000. Daniel Mazzocco. Property location: Wright Township. Lender: Citizens Bank. Amount: $200,000. Joseph Mantione. Property location: WilkesBarre Township. Lender: Community B&T. Amount: $3,000,000. Joseph Mantione. Property location: Dallas Borough. Lender: Community B&T. Amount: $3,000,000. Joseph Mantione. Property location: Kingston Borough. Lender: Community B&T. Amount: $3,000,000. Joseph Mantione. Property location: Hanover Township. Lender: Community B&T. Amount: $3,000,000. Dean Copely. Property location: Jackson Township. Lender: East Stroudsburg Savings Association. Amount: $233,000. Pietro Colella. Property location: Jenkins Township. Lender: First Heritage Bank. Amount: $215,000. Alex Rogers. Property location: Kingston Borough. Lender: First Horizon Home Loan. Looking for good employees? Browse through our huge network of online resumes — just Click here. Amount: $322,700. Robert Sabella. Property location: Harveys Lake Borough. Lender: First Mutual Corp. Amount: $225,000. John Yenason. Property location: Harveys Lake Borough. Lender: First National Community Bank. Amount: $300,000. Richard Uter. Property location: Butler Township. Lender: Flagstar Bank. Amount: $207,310. Michael Church. Property location: Bear Creek Township. Lender: Honesdale National Bank. Amount: $235,000. Michael Sherneck. Property location: Dallas Township. Lender: Irwin Mortgage Corp. Amount: $268,000. Hazleton Community New Development. Property location: Luzerne County. Lender: Hazle Township. Amount: $1,000,000. Robert Stackhouse. Property location: Jenkins Township. Lender: M&T Bank. Amount: $275,000. Ian Kellman. Property location: Jackson Township. Lender: M&T Bank. Amount: $303,000. George Sordoni. Property location: Jackson Township. Lender: Merrill Lynch. Amount: $432,000. Terrence Herron. Property location: Dallas Borough. Lender: MERS. Amount: $220,500. Charles McAvoy. Property location: Kingston Township. Lender: Option One Mortgage. Amount: $236,000. David Cebrick. Property location: Franklin Township. Lender: PA State Emp CU. Amount: $3,321,350. Scott Nicholson. Property location: Swoyersville Borough. Lender: PHH Mortgage Service. Amount: $256,500. Robert Sacco. Property location: Sugarloaf Township. Lender: Wachovia Bank. Amount: $270,000. Thomas Medico. Property location: Jackson Township. Lender: Wachovia Bank. Amount: $433,019. Robert Connolly. Property location: Hazle Township. Lender: Wachovia Bank. Amount: $249,960. Raymond Ostroski. Property location: Kingston Borough. Lender: Wachovia Bank. Amount: $368,145. Michael Ell. Property location: Nanticoke City. Lender: Henry Wasilewski. Amount: $255,000. Gwen Galasso. Property location: Jenkins Township. Lender: Wells Fargo Bank. Amount: $248,000. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL CLASSIFIEDS CLASSIFIED LISTING is a special section of the Northeast Pennsylvania Business Journal For more information or to reserve your space in next month’s issue, call the Journal 570-207-9001 or 877-584-3561 Deadline: 9/15/03 149 Penn Avenue Scranton, PA 18503 Fax: 570-207-3452 • nepajobfinder.com offers access to listings of nearly 1,000 newspapers nationwide • Featuring newly updated jobs every day • Find jobs with top local & national companies • Post resumes online • Hints for writing resumes • Help with interviews 60 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 The nation’s largest NEWSPAPER EMPLOYMENT DATABASE Samuel Perta. Property location: Larksville Borough. Lender: ABN AMRO Mortgage Group. Amount: $204,000. Curtis Mattingly. Property location: Jackson Township. Lender: America’s Wholesale Lender. Amount: $262,500. Gary Booth. Property location: Lake Township. Lender: American Res Mortgage. Amount: $203,200. Georffrey Miller. Property location: Kingston Township. Lender: Beneficial Cons. Disc. Co. Amount: $245,284. Karyn Hildebrand. Property location: Larksville Borough. Lender: Century 21 Mortgage. Amount: $225,150. Ronald Harvey. Property location: Huntington Township. Lender: Columbia City Farmers National. Amount: $477,000. Donald Stone. Property location: Huntington Township. Lender: Columbia City Farmers National. Amount: $314,000. Gregory Bolesta. Property location: Plymouth Borough. Lender: Crusader Mortgage. Amount: $238,000. Auto Properties. Property location: Wilkes-Barre City. Lender: Daimler/Chrysler North America. Amount: $13,000,000. Auto Properties. Property location: Plains Township. Lender: Daimler/Chrysler Services. Amount: $13,000,000. Aaron Wanchisen. Property location: Dorrance Township. Lender: East Stroudsburg Savings Association. Amount: $225,000. Permen Realty. Property location: Wilkes-Barre City. Lender: First Heritage Bank. Amount: $220,000. Ironworks Local 489 Corp. Property location: Yatesville Borough. Lender: First Heritage Bank. Amount: $200,000. Smejj Inc. Property location: Hazle Township. Lender: First Heritage Bank. Amount: $850,000. James Casey. Property location: Wilkes-Barre City. Lender: Interbay Funding. Amount: $250,000. Greater Wilkes-Barre Development Corp. Property location: Wilkes-Barre City. Lender: Luzerne County. Amount: $750,000. Lee Sadusky. Property location: Exeter Borough. Lender: M&T Bank. Amount: $244,000. Alan Ryder. Property location: Butler Township. Lender: M&T Bank. Amount: $218,000. Lee Glassberg. Property location: Hazle Township. Lender: M&T Bank. Amount: $210,000. William Gill. Property location: Kingston Earl and Christine Ernest. Property location: Price Township. Lender: Long Beach Mortgage Co. Amount: $288,941. 1723 West Main Street LP and J&R Property Investment LLC. Property location: Hamilton Township. Lender: Pocono Community Bank. Amount: $220,000. Christopher Stockley. Property location: Middle Smithfield Township. Lender: Chase Manhattan Mortgage Corp. Amount: $429,533 and $80,538. Howard Klein. Property location: Stroudsburg. Lender: Citimortgage Inc. Amount: $273,000. Faith Lutheran Church of Blakeslee. Property location: Tobyhanna Township. Lender: Trivent Financial for Lutherans. Amount: $288,000. Robert and Rebecca Krell. Property location: Barrett Township. Lender: Dime Bank. Amount: $1,000,000. David Everitt III and Tina Drake. Property location: Ross Township. Lender: Lafayette Ambassador Bank. Amount: $272,000. Michael Logan. Property location: Smithfield Township. Lender: Wachovia Mortgage Corp. Amount: $277,000. Floyd and Phyllis Halley. Property location: Stroud Township. Lender: First NLC Financial Services LLC. Amount: $272,000. LTS Development Inc. Property location: Stroud Township. Lender: First National Community Bank. Amount: $235,000. Thomas and Diane Keeley. Property location: Hamilton Township. Lender: Windsor Financial Mortgage Corp. Amount: $269,000. Juris and Hugh Carroll and Arthur and Rachelle Crispino. Property location: Chestnuthill Township. Lender: Countrywide Home Loans Inc. Amount: $274,300. James Anastasio. Property location: Tobyhanna Township. Lender: Countrywide Home Loans Inc. Price: $460,000 and $115,000. Jon and Marybeth Miller. Property location: Hamilton Township. Lender: First Horizon Home Loan Corp. Amount: $280,000 and $34,900. Young Men’s Christian Association of Monroe County. Property location: Stroudsburg. Lender: Nazareth National Bank & Trust Co. Amount: $750,000. Abdullah Juya. Property location: Hamilton Township. Lender: Countrywide Home Loans Inc. Amount: $285,000. Stroudsburg Wesleyan Church. Property location: Stroud Township. Lender: Wesleyan Investment Foundation Inc. Amount: $350,000. SBA Properties Inc. Property location: Township. Lender: M&T Bank. Amount: $225,001. Michael Weaver. Property location: Lehman Township. Lender: Merrill Lynch Credit Corp. Amount: $322,700. Eric Dove. Property location: Wright Township. Lender: Navy FCU. Amount: $252,500. Dan Rochon, Jr. Property location: Dorrance Township. Lender: Paramount Mortgage. Amount: $213,000. Keith Gramlich. Property location: Bear Creek Township. Lender: SLM Financial Corp. Amount: $224,000. Joseph Novotnak. Property location: Hazleton City. Lender: Saxon Mortgage. Amount: $272,000. Armand Mascioli. Property location: Dallas Borough. Lender: Wachovia Bank. Amount: $300,000. John Weyrauch. Property location: Wright Township. Lender: Wachovia Bank. Amount: $287,850. Louis Goeringer. Property location: Bear Creek Township. Lender: Wachovia Bank. Amount: $400,000. Robert Gill. Property location: Huntington Township. Lender: Wachovia Mortgage Group. Amount: $322,000. David Mallory. Property location: Dorrance Township. Lender: Washington Mutual Bank. Amount: $367,200. Richard Powell. Property location: Wilkes-Barre City. Lender: Wells Fargo Financial Bank. Amount: $200,000. Jeffrey Trumm. Property location: Kingston Township. Lender: Wells Fargo Home Mortgage. Amount: $251,100. Monroe County Martin Sagofsky. Property location: Jackson Township. Lender: Fairmont Funding Ltd. Amount: $275,000. Kerry and Mira Althouse. Property location: Smithfield Township. Lender: East Stroudsburg Savings Assn. Amount: $415,000. Barry and Chi Palmer. Property location: East Stroudsburg. Lender: IFC Mortgage Corp. Amount: $251,700. Paul and Marie Webster. Property location: Hamilton Township. Lender: Homecoming Financial Network Inc. Amount: $381,000. Taykut and Tulin Aydin. Property location: Pocono Township. Lender: Public Savings Bank. Amount: $268,850. Smithfield Township. Lender: General Electric Capital Corp. Amount: $220,128,160. Daniel and Joyce Herring. Property location: Tobyhanna Township. Lender: Washington Mutual Bank FA. Amount: $322,700. JD Real Estate Subsidary LLC. Property location: Stroud Township. Lender: Citicorp USA Inc. Amount: $1,500,000,000. Vickiann and Jeffery Hicks. Property location: Stroudsburg. Lender: Wayne Bank. Amount: $320,000. Jeanette Jin and Peter Vinella. Property location: Smithfield Township. Lender: PHH Mortgage Services. Amount: $281,500. Juan and Rafaelina Caraballo. Property location: Stroud Township. Lender: First NLC Financial Services LLC. Amount: $294,000. Ron Gorman. Property location: Stroud Township. Lender: Countrywide Home Loans Inc. Amount: $337,500. Samuel Baurkot. Property location: Tobyhanna Township. Lender: Merchants National Bank of Bangor. Amount: $1,032,000. David and Laura Turner. Property location: Hamilton Township. Lender: American Federal Mortgage Corp. Amount: $296,000. Diane and Mark Cloeren. Property location: Middle Smithfield Township. Lender: America’s Wholesale Lender. Amount: $252,000. Robert and Marianne Nichols. Property location: Eldred Township. Lender: Cendant Mortgage Corp. Amount: $258,300. Flostena Smith and Michael Franko. Property location: Chestnuthill Township. Lender: Countrywide Home Loans Inc. Amount: $285,700. Demmac LLC. Property location: Middle Smithfield Township. Lender: Norcrown Bank. Amount: $1,220,000. John and Janice Rhodes. Property location: Hamilton Township. Lender: Taylor Bean & Whitaker Mortgage Corp. Amount: $288,400. Shop Quik Inc. Property location: Ross Township. Lender: Nazareth National Bank & Trust Co. Amount: $1,700,000. Russell and Sara Cramer. Property location: Pocono Township. Lender: Wayne Bank. Amount: $300,000. Roslyn and Wayman Jones Sr. Property location: Stroud Township. Lender: PNC Bank NA. Amount: $450,169. Maurizio and Lindy Cibischino. Property location: Hamilton Township. Lender: PNC Bank NA. Amount: $360,000. Wilfredo and Maria Mercado. Property location: Pocono Township. Lender: Citizens Mortgage Corp. Amount: $313,400. Alyssa and Francis Hager Jr. Property location: Stroud Township. Lender: Nazareth National Bank & Trust Co. Amount: $3,700,000. Joseph and Dorothy Blaney. Property location: Barrett Township. Lender: Chase Manhattan Mortgage Corp. Amount: $425,000. Dilcia Phillips and Valerie Gowie. Property location: Hamilton Township. Lender: Primary Residential Mortgage Inc. Amount: $425,000. David and Lavelle Bigatel. Property location: Smithfield Township. Lender: East Stroudsburg Savings Assn. Amount: $322,700. Ronald Batson. Property location: Pocono Township. Lender: Independent Mortgage Co. Amount: $256,500. Robert Mrofka. Property location: Chestnuthill Township. Lender: East Stroudsburg Savings Assn. Amount: $287,500. Herb and Denise Grainer. Property location: Smithfield Township. Lender: Countrywide Home Loans Inc. Amount: $271,200 and $33,900. Cornerstone Propane LP. Property location: East Stroudsburg. Lender: Bank of New York Trust Co. of Florida NA. Amount: $300,000,000. Stroudstor LP. Property location: Smithfield Township. Lender: Mercantile-Safe Deposit & Trust Co. Amount: $1,060,000. Dennis Noonan. Property location: Mount Pocono. Lender: First National Bank of Arizona. Amount: $360,000. Richard Fly. Property location: Stroudsburg. Lender: First National Bank of Palmerton. Amount: $250,000. Ramis and Tatiana Gimadeyev. Property location: Hamilton Township. Lender: Countrywide Home Loans Inc. Amount: $539,950. Raymond Alvarez and Evelyn Figueroa-Alvarez. Property location: Middle Smithfield Township. Lender: Countrywide Home Loans Inc. Amount: $277,900 Kenbar Investment Group, Kenneth Schuchman and Barth Rubin (gen. part.). Property location: Smithfield Township. Lender: East Stroudsburg Savings Assn. Amount: $396,000 and $472,000. Catherine Roman and Luis Ruperto. Property location: Smithfield Township. Lender: Countrywide Home Loans Inc. Amount: $264,000. Suzette Goffney. Property location: Ross Township. Lender: Patriot Bank. Amount: Continues on page 63 COMMERCIAL PROPERTY & BUSINESS OPPORTUNITIES FOR SALE WILKES-BARRE AREA EXETER WONDERFUL bus opportunity - Restaurant w/ catering hall clambake grove & liq lic in place - Est’d rest seats 60, dining halls accomodate up to 475 - On & off site catering. Price incl’s equip, pkg lots & residence. MLS #2LF1659 $999,000 Margy 696-0891 MOD, brick, well maintained 5000 SF office bldg in premier location in high traffic area w/pkg for 32 cars. Presently used as a medical office - many other uses. Excellent prop with great potential! MLS#3LF0131 $585,000 Rae 714-9234 WILKES-BARRE WILKES-BARRE OFFICE BUILDING currently. Could be retail. In great location. 1 sty approx. 17,000 SF w/ abundance of pkg. on 3.5 acres, w/ability to expand. MLS #3LF0053 $1,200,000 Judy R. 714-9230 Scott St/W-B Blvd, prime location. Approx 20,000 SF brick bldg on approx 2 acres. Multi use, high traffic, high visibility. Wet sprinkler, ample pkg. MLS #3LF1795 $750,000 Margy 696-0897 WILKES-BARRE WILKES-BARRE EXCEPTIONAL architecturally designed office space for the discriminating professional. Beautiful professional landscaping, wonderful design & finish thru-out. Centrally located in W-B Business District MLS#2LF4257 $579,000 Mike J. 970-1100 OFFICE complex on approx. 9.6 acres. Main bldg. approx. 160,000 SF office space including raised floor & fully wired computer room. Add’l bldgs. approx. 15,000 SF of office & warehouse. Convenient location w/access to interstate. MLS #3LF1781 EXETER SHAVERTOWN MULTI-TENANT, 1 sty bldg in excellent condition. Ideal for owner user or investor. Adequate pkg, newly renovated, good location. Call for private showing. MLS #3LF0143 $385,000 Judy R. 714-9230 HIGHWAY EXPOSURE! This multi-tenant commercial bldg. has possibility galore! One unit rented, one vacant & potential for a third. MLS #3LF0156 $179,000 Judy R. 714-9230 PITTSTON BERWICK BRIAR CREEK TWP $2,495,000 Don 696-0872 Mike 970-1100 LEWITH & FREEMAN REAL ESTATE INC. 570-288-9371 Kingston 570-696-3801 Shavertown 570-788-1999 Drums 570-474-9801 Mountaintop is a special selection of the Northeast Pennsylvania Business Journal For more information or to reserve your space in next month’s issue, call the Journal 570-207-9001 or 877-584-3561 WELL MAINTAINED 35,000 SF 1 sty manf/ warehouse on 4.8 level acres w/pub utils, sprinkler & security sys. Central mfg area, offices, cafeteria, mechanical rms, 3 loading docks. MLS #1LF2450 $549,000 Terry D 715-9317 9000 SF MASONRY bldg. Shown by appt. only. No sign owner’s request. MLS #3LF4308 $250,000 Mike J./Joe T. 822-1160 COMMERCIAL PROPERTY LISTING Deadline: 9/15/03 149 Penn Avenue Scranton, PA 18503 Fax: 570-207-3448 570-822-1160 Wilkes-Barre NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 61 62 • NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 $298,341.25. George and Lisa Manatakis. Property location: Barrett Township. Lender: Countrywide Home Loans Inc. Amount: $288,902. Gary and Elizabeth Lewis. Property location: Stroud Township. Lender: ABN Amro Mortgage Group Inc. Amount: $267,500. Brenda Leonard. Property location: Ross Township. Lender: America’s Wholesale Lender. Amount: $260,900. Anthony and Maria Barilla. Property location: Pocono Township. Lender: America’s Residential Mortgage Corp. Amount: $275,500. Larry and Andrea Lynch. Property location: Smithfield Township. Lender: Wells Fargo Home Mortgage Inc. Amount: $268,000. Scott Kemp and Jorge Blondett. Property location: Jackson Township. Lender: Interbay Funding LLC. Amount: $330,000. Craig and Lynette Ott. Property location: Stroud Township. Lender: Citizens Bank of PA. Amount: $263,000. Greg and Jennifer McDermott. Property location: Coolbaugh Township. Lender: Windsor Financial Mortgage Corp. Amount: $280,000. Edward and Elaine Stys. Property location: Jackson Township. Lender: First Financial Equities Inc. Amount: $295,000. John and Nancy Okula. Property location: Smithfield Township. Lender: H&R Block Mortgage Corp. Amount: $320,000. Clearview Builders Inc. Property location: Chestnuthill Township. Lender: Interstate Net Bank. Amount: $204,800. Kerri and Stephen Argen. Property location: Paradise Township. Lender: First Horizon Home Loan Corp. Amount: $251,000 and $127,000. Bruce and Marianne Brandli. Property location: Middle Smithfield Township. Lender: Wachovia Bank NA. Amount: $400,000. Fred and Janice Fantuzzi. Property location: Chestnuthill Township. Lender: Countrywide Home Loans Inc. Amount: $255,900. Jonathan Offerman. Property location: Stroud Township. Lender: First Horizon Home Loan Corp. Amount: $281,250. Ernest and William Sims. Property location: Barrett Township. Lender: Trident Mortgage Co. LP. Amount: $506,250. 940 Commercial Inc. n/b/n/c Hill Farm Estates Inc. Property location: Ross Township. Lender: Wayne Bank. Amount: $350,000. Christy Mara. Property location: Jackson Township. Lender: Wells Fargo Home Mortgage Inc. Amount: $355,500. Derek and Susan Arneaud. Property location: Smithfield Township. Lender: East Stroudsburg Savings Assn. Amount: $255,000. Patrick Haftl and Randy Bachman. Property location: Eldred Township. Lender: Countrywide Home Loans Inc. Amount: $252,000 and $46,800. Hillcrest Retirement Community Ltd. Partnership. Property location: Jackson Township. Lender: First National Bank of Palmerton. Amount: $250,000. William and Carole Grant. Property location: Chestnuthill Township. Lender: First National Bank of Palmerton. Amount: $300,000. David O’Brien. Property location: Stroud Township. Lender: Washington Mutual Bank FA. Amount: $320,000. Michael and Susan Basso. Property location: Stroud Township. Lender: Wells Fargo Home Mortgage Inc. Amount: $316,000. Christine Hurley. Property location: Stroud Township. Lender: Countrywide Home Loans Inc. Amount: $258,400. Kasimierz Debski. Property location: Chestnuthill Township. Lender: Mortgage Electronic Registration Systems Inc. Amount: $278,910. Scott Rosen. Property location: Hamilton Township. Lender: First Horizon Home Loan Corp. Amount: $271,500 and $56,350. Pearce Enterprises LLC. Property location: Chestnuthill Township. Lender: Manufacturers and Traders Trust Co. Amount: $350,000. Ronald Baumann. Property location: Chestnuthill Township. Lender: Mid Atlantic Farm Credit ACA. Amount: $525,000. James Ertle. Property location: Stroud Township. Lender: Marvin Papillon. Amount: $400,000. Schuylkill County Robert Allen. Property location: Orwigsburg. Lender: Cendant Mobility Financial Corp. Amount: $245,000. Providence Place of Pottsville. Property location: Pottsville. Lender: Sovereign Bank. Amount: $9,000,000. Medical Plaza Partners. Property location: Pottsville. Lender: Wachovia National Bank. Amount: $598,200. Sonric Associates. Property location: Pottsville. Lender: Union Bank. Amount: $900,000. Yaworsky Family Limited Partnership. Property location: St. Clair. Lender: Community Bank. Amount: $570,000. Wayne County Kristin Murphy. Property location: Lake. Lender: Wachovia Bank. Amount: $203,668. Keith Heilner. Property location: Lehigh. Lender: Washington Mutual Bank. Amount: $200,000. Keith Robinson. Property location: Canaan. Lender: The Dime Bank. Amount: $268,000. Philip Kellerman. Property location: Hawley. Lender: Wells Fargo Financial Bank. Amount: $200,000. Ronald Sidovar. Property location: Salem. Lender: Wachovia Bank. Amount: $288,000. Danuta Piwinska. Property location: Paupack. Lender: MERS. Amount: $220,500. Anne Seyfarth. Property location: Salem. Lender: MERS. Amount: $236,000. Waymart Area Authority. Property location: Canaan. Lender: Wayne Bank. Amount: $1,700,000. Waymart Area Authority. Property location: Canaan. Lender: Wayne Bank. Amount: $347,050. Joseph Ghartey. Property location: Damascus. Lender: Bank of America. Amount: $322,000. Randal Williams. Property location: Mount Pleasant. Lender: Ameriquest Mortgage Co. Amount: $200,700. Salvatore Scarfalloto. Property location: Prompton. Lender: The Dime Bank. Amount: $208,500. Miles Scott Krieger. Property location: Preston. Lender: Honesdale National Bank. Amount: $221,600. Douglas Pryor. Property location: South Canaan. Lender: MERS. Amount: $200,000. Donald Miller. Property location: Dyberry. Lender: Harleysville National Bank and Trust. Amount: $200,000. Francis Henofer, Jr. Property location: Paupack. Lender: MERS. Amount: $428,000. Daniel Gould. Property location: Preston. Lender: The Dime Bank. Amount: $590,000. Thomas Richard Grozalis. Property location: Paupack. Lender: Mortgageline.com. Amount: $322,700. Vincent Tarantola. Property location: Salem. Lender: Wells Fargo Home Mortgage. Amount: $269,000. Rudy Schemitz. Property location: Berlin. Lender: Bank of America. Amount: $300,000. Joseph Hyer. Property location: Lake. Lender: MERS. Amount: $276,000. Frank Mina. Property location: Lake. Lender: Wells Farog Home Mortgage Inc. Amount: $246,400. Melvin Freilich. Property location: Buckingham. Lender: Wells Fargo Home Mortgage Inc. Amount: $218,400. Sirpa Defex. Property location: Paupack. Lender: Washington Mutual Bank. Amount: $204,000. Eileen Salak. Property location: Preston. Lender: Community Bank and Trust Co. Amount: $300,000. Wyoming County David Ritz. Property location: Windham Township. Lender: Grange National Bank. Amount: $219,600. John Whytashek. Property location: Lemon Township. Lender: Grange National Bank. Amount: $219,600. Thomas Dellaglio. Property location: Nicholson Township. Lender: Agchoice Farm Credit. Amount: $427,500. Jeffrey Kintner. Property location: Washington Township. Lender: MERS. Amount: $216,500. SBA Properties Inc. Property location: Noxen Township. Lender: General Electric Capital Corp. Amount: $220,128,160. Robert Hafford. Property location: Eaton Township. Lender: MERS. Amount: $540,560. Eric Campagna. Property location: Nicholson Township. Lender: First National Community Bank. Amount: $275,000. Skyline Holdings Inc. Property location: Nicholson Township. Lender: Penn Security Bank and Trust Co. Amount: $240,000. Michael Stoko III. Property location: Overfield Township. Lender: First Horizon Home Loan Corp. Amount: $322,700. Charles Pompey. Property location: Falls Township. Lender: First Federal Bank. Amount: $218,500. Lavere Stiles. Property location: Eaton Township. Lender: MERS. Amount: $292,000. Scholarships The Williamsport-Lycoming Foundation joined with donors, scholarship recipients and parents to celebrate the 66 new scholarships provided from the 40 scholarship funds managed by the WilliamsportLycoming Foundation. Many donors were able to converse and interact with their scholarship recipients during the reception. Many students receiving scholarships from funds managed by the WilliamsportLycoming Foundation are eligible for consideration from the Pennsylvania Higher Education Assistance Agency (PHEAA) PATH (Partnerships for Access to Higher Education) program to receive match grant funds. The PATH program provides match grant awards to full-time undergraduate students who are enrolled in Pennsylvania postsecondary institutions and meet other guidelines, thereby doubling the efforts of the donors. Most scholarship recipients and donors met for the first time at this reception. The Williamsport-Lycoming Foundation’s mission is to maximize the power of people and their donated assets to build vibrant communities within northcentral Pennsylvania now and in the future. The foundation administers funds on behalf of donors and charities within Lycoming, Montour, Northumberland, Bradford, Sullivan, Tioga and Union counties. More information about the Williamsport-Lycoming Foundation is available at its Web site, www.wlfoundation.org, or call (570) 321-1500. Stocks The following information on insider trading activity was provided by James J. Blazejewski, senior vice president, Prudential Securities Inc., 32 Scranton Office Park, Scranton, Pa. 18507. Many of the stocks mentioned are not followed by Prudential Securities’ research department, which has no opinion on their investment merit. Current performance of reported stock issues is no guarantee of future returns. Insider trading as of Aug. 12, 2003 (APD - 46.09) - Air Products and Chemicals Inc. On Aug. 4, 2003, Robert E. Blazejewski Gadomski, executive vice president, Air Products and Chemicals Inc., sold 1,000 shares at $45.85 per share. On July 30, he acquired 48,500 shares via exercise of options at $40 per share and on the same date, he sold those shares at $45.92 per share. On the same date, he disposed of 3,153 shares (non-open market) at $46.06 per share. His direct holdings total 40,800 shares and his indirect holdings total 143 shares. On August 1, Andrew E. Cummings, officer, acquired 9,000 shares via exercise of options at $23.12 per share; and on the same date, he sold those shares at $46.29 per share. His direct holdings total 17,498 shares and his indirect holdings total 12,598 shares. On July 30, Arthur T. Katsaros, officer, acquired 18,800 shares via exercise of options at $40 per share; and on the same date, he sold those shares at $45.90 per share. His direct holdings total 17,007 shares and his indirect holdings total 11,488 shares. On July 30, Paul E. Huck, vice president, acquired 18,380 shares via exercise of options at $19.56-$40 per share; and on the same date, he sold those shares at $46.02 per share. His direct holdings total 17,863 shares and his indirect holdings total 5,674 shares. (CSS - 25.49) CSS Industries Inc. On Aug. 5, 2003, John J. Nucero, vice president, CSS Industries Inc., acquired 5,775 shares via exercise of options at $17.25 - $18.25 per share. His direct holdings total 11,143 shares. On August 5, Leonard Grossman, director, sold 26,200 shares at $25.4655 per share. On August 4, Mr. Grossman sold 4,500 shares at $25.4036 per share. On August 1, Grossman sold 5,700 shares at $25.4007 per share. On July 31, Grossman sold 3,300 shares at $25.49 per share. On July 30, Grossman sold 300 shares at $25.63 per share. His direct holdings total 249,173 shares and his indirect holdings total 3,700 shares. On July 28th, the Faber Foundation, filed its intent to sell 30,000 shares of restricted stock. (CZNC - 26.05) Citizens & Northern Corp. On July 24, 2003, Karl W. Kroeck, director, Citizens & Northern Corp., sold 1,665 shares at $25.924 per share. His direct holdings total 908 shares. (FBF - 30.04) Fleetboston Financial Corp. On July 23, 2003, Gary A. Spiess, executive vice president, Fleetboston Financial Corp., sold 1,700 shares at $30.43 per share. His direct holdings total 113,193 shares. On July 22, Terrence J. Murray, director, declared his intent to sell 200,000 shares. On July 22, Ann M. Funicane, executive vice president, sold 3,200 shares at $30.34 per share. Her direct holdings total 33,332 shares. (FULT - 20.07) Fulton Financial Corp. On July 23, 2003, Joseph J. Mowad, director, Fulton Financial Corp., purchased 160 shares at $20.67 per share. His direct holdings total 3,962 shares and his indirect holdings total 37,054 shares. On July 23, Samuel H. Jones, Jr., director, purchased 237 shares at $20.6709 per share. His direct holdings total 1,499,354 shares and his indirect holdings total 7640 shares. On July 23, Eugene H. Gardner, purchased 232 shares at $20.6709 per share. His direct holdings total 35,973 shares and his indirect holdings total 32,998 shares. On July 23, Donald M. Bowman, Jr., purchased 160 shares at $20.67 per share. His direct holdings total 330,723 shares and his indirect holdings total 86,722 shares. (HNBC - 26.79) Harleysville National Corp. On Aug. 7, 2003, Leeann B. Bergey, director, Harleysville National Corp., acquired 2,700 shares via exercise of options at $14.82 per share. (MTB - 85.80) M&T Bank Corp. On Aug. 1, 2003, Kevin J. Pearson, executive vice president, M&T Bank Corp., acquired 3,600 shares via exercise of options at $42 per share and on the same date, sold those shares at $86.60 - $86.83 per share. On July 31, he acquired 7,000 shares via exercise of options at $29 - $49.50 per share and on the same date, he disposed of 3,195 shares (non-open market trade) at $88.57 per share. His direct holdings total 8,500 shares. On July 24, Adam C. Kugler, treasurer, acquired 27,480 shares via exercise of options at $42 - 49.50 per share and on the same date, he sold those shares for $89.75 per share. On July 23, he acquired 15,000 shares via exercise of options at $42 per share and on the same date, he sold those shares at $89.50 per share. On July 22 Steven M. Coen, executive vice president, declared his intent to sell 18,345 shares. On July 22, Derek C. Hathaway, director, purchased 1,000 shares at $89.29 per share. His direct holdings total 1,000 shares. On July 22 Atwood Collins, III, executive vice president, acquired 30,000 shares via exercise of options at $13.95 per share and on the same date, he sold 22,840 shares at $89 $89.43 per share. His direct holdings total 78,150 shares. On July 22, Steven M. Coen, executive vice president, acquired 26,296 shares via exercise of options at $29 - $75.80 per share and on the same date, he sold 18,345 shares at $89 - $89.44 per share. His direct holdings total 7,951 shares. On July 22, Robert E. Sadler, executive vice president, acquired 30,000 shares via exercise of option at $21.10 per share and on the same date he disposed (non-open market) of 14,835 shares at $89.26 per share. His direct holdings total 368,344 shares. (MEL - 31.02) Mellon Financial Corp. On Aug. 4, 2003, Michael A. Bryson, chief financial officer, Mellon Financial Corp., sold 2,000 shares at $29.66 per share. His direct holdings total 52,624 shares and his indirect holdings total 400 shares. On July 25, Ira Gumberg, director, sold 10,000 shares at $30.12 per share. His direct holdings total 166,379 shares. On July 18, Michael K. Hughey, controller, sold 2,656 shares at $29.44 per share. His direct holdings total 7527 shares. On July 18, Steven G. Elliott, officer, acquired 52,442 shares via exercise of options At $12.4375$15.7188 per share and on the same date, he sold those shares at $29.16 per share. His direct holdings total 1,071,661 shares. (NWFL - 29.10) Norwood Financial Corp. On Aug. 7, 2003, Gary P. Rickard, director, Norwood Financial Corp. sold 500 shares at $29.10 per share. His direct holdings total 14,825 shares and his indirect holdings total 1,023 shares. On Aug. 6, Joseph Kneller, senior vice president, acquired 3,750 shares via exercise of options at $16 per share and on the same date, sold those shares at $29 per share. His direct holdings total 1518 shares. On July 7, Edward Kasper, senior vice president, acquired 7,860 shares via exercise of options at $10.95 - $11.08 per share. His direct holdings total 11,377 shares and his indirect holdings total 4,617 shares. (PPL - 39.17) PPP Corp. On Aug. 1, 2003, Joseph J. McCabe, controller, PPP Corp. sold 1,500 shares at $39.168 per share. His direct holdings total 4,470 shares and his indirect holdings total 1,659 shares. On Aug. 1st, Robert J. Grey, senior vice president, acquired 52,933 shares via exercise of options at $22.65 per share and on the same date, he sold 46,933 shares at $39.55 - $39.60 per share. His direct holdings total 24,130 shares. On Aug. 1, Roger I. Petersen, officer, acquired 14,240 shares via exercise of options at $26.84 per share, and on the same date, he sold 11,100 shares at $39.55 - $39.64 per share. His direct holdings total 40,244 shares. On July 31, James E. Abel, treasurer, acquired 16,614 shares via exercise of options at $22.6525 - 33.49 per share and on the same date, he sold 17,709 shares at $39.648 - $39.95 per share. His direct holdings total 4390 shares. (SUBI - 19.37) Sun Bancorp Inc. On July 29, 2003, Robert J. McCormack, CEO, Sun Bancorp Inc.purchased 341 shares at $19.36 per share. On July 21, he purchased 450 shares at $19.48 per share. His direct holdings total 20,565 share. (VZ - 35.20) Verizon Communications On Aug. 1, 2003, David H. Benson, controller, Verizon Communications, sold 9,719 shares at $35 per share. His indirect holdings total 16,501 shares. (WB - 43.35) Wachovia Corp. On Aug. 1, 2003, Donald K. Truslow, senior vice president, Wachovia Corp. acquired 8,000 shares via exercise of options at $17.31 per share. His direct holdings total 168,748 shares. On July 24, Thomas J. Wurtz, treasurer, sold 3,800 shares at $44.24 per share. His direct holdings total 15,330 shares and his indirect holdings total 3181 shares. On July 21, Joseph Neubauer, director, sold 3,336 shares at $42.61 - $42.62 per share. His direct holdings total 8,328 shares. Prices as of close on Aug. 12, 2003 Information in “For The Record” was compiled by Jamie Callen and Patti Knoepfel. For inclusion in this section, e-mail press releases to [email protected]. NORTHEAST PENNSYLVANIA BUSINESS JOURNAL • SEPTEMBER 2003 • 63 An occupational medical center that understands the needs of industry. immediate care of acute injuries on premises comprehensive diagnostic testing independent medical evaluations complete physical therapy department occupational/hand therapy work reconditioning program drug & alcohol testing dot and pre-placement physicals Keystone Industrial Park Dunmore, PA 18512 570.341.7777 Highland Business Park 268 Highland Park Boulevard, Wilkes-Barre, PA 18702 570.822.8831
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