Lockheed Martin awarded nearly $30M modication to Navy contract

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SALINA — The Lockheed Martin Corp. (NASDAQ: LMT) plant in suburban Syracuse has won a more than $29.8 million modification to a previously awarded contract to exercise an option for U.S. Navy equipment. Work will be performed in the town of Salina (67 percent) and Millersville, Maryland (33 percent), and is expected to be completed […]

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Federal funding will target redevelopment of public-housing units near I-81

Construction, Design & Real Estate, Subscriber Only

SYRACUSE — Millions in federal-government funding will help pay for the redevelopment of more than 600 aging public-housing units into new, affordable, mixed-income housing units in the East Adams neighborhood near Interstate 81 (I-81) in the city’s 15th Ward. The Syracuse Housing Authority (SHA) and the City of Syracuse will use a $50 million federal

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The Syracuse Housing Authority (SHA) and the City of Syracuse will use a $50 million federal grant to improve the units.

This money comes through the U.S. Department of Housing and Urban Development’s (HUD) Choice Neighborhoods Initiative program, U.S. Senate Majority Leader Charles Schumer (D–N.Y.) and U.S. Senator Kirsten Gillibrand (D–N.Y.) said in a joint announcement on July 12.

The lawmakers called the grant “one of the largest single federal housing investments in Syracuse’s history” resulting in what is referred to as the East Adams transformation plan.

The project also involves related community improvements, including enhancing green space, workforce training, the Children Rising Center, education opportunity, and business development.

“Today the federal government is making one of the single largest housing investments in Syracuse’s history. I am proud to deliver a whopping $50 million to create and preserve hundreds of units of much-needed affordable housing in Syracuse,” Schumer said in the announcement. “This isn’t just an investment in new affordable housing, it is a critical investment in our families via education, workforce training, and business development. An investment in building a vibrant Syracuse for when the walls of I-81 come down.”

Schumer’s office describes Syracuse’s East Adams neighborhood as bounded by I-81 to the east, East Adams Street to the north, Midland Avenue to the west, and Colvin Street to the south.

Project specifics

This federal funding will help increase the availability of quality housing by helping pay for the construction of a large, multi-generational, mixed-income community with “affordable, modern, accessible, high-quality, and energy-efficient housing,” per Schumer’s office.

More specifically, SHA will replace an estimated 672 units of distressed public housing at McKinney Manor and Pioneer Homes.

Additionally, SHA and partners will use the grant funding on services to ensure that all current residents of McKinney Manor and Pioneer Homes public-housing units will have first priority to return to the newly constructed units once complete.

In addition, the grant money will “enhance access to quality education” by helping pay for the Syracuse City School District’s efforts to improve student performance, building a pipeline of students for the new STEAM High School, and “fast-tracking” development of the Children’s Rising Center, an early learning and parental empowerment center that will address the lack of quality and affordable childcare in and around the East Adams neighborhood.

The grant funding will also help “accelerate economic opportunity” by expanding workforce training and small-business development in the East Adams neighborhood. More specifically, the plan aims to enhance workforce-development initiatives already underway at SUNY Educational Opportunity Centers with the creation of a new, SHA-managed East Adams Skill & Enrichment Academy, which will increase Section 3 job opportunities on major local projects like I-81.

Additionally, the plan seeks to create a new Black Indigenous People Of Color (BIPOC) real-estate development and entrepreneurship incubator in collaboration with CenterState CEO and other key workforce partners.

The grant funding also seeks to “expand neighborhood connectivity and visibility” by investing in new infrastructure along key travel corridors to make new connections between the East Adams neighborhood and opportunities across the city. The corridors include South Salina Street, East Adams Street, Montgomery Street, South Townsend Street, and I-81.

For example, the effort will include bolstering the Children Rising Center and plans for a new Linear Park connecting Wilson and Roesler parks, which will establish a neighborhood greenway and linkages to new amenities for SHA residents and visitors of the new East Adams neighborhood.

The initiative will also include placemaking efforts to celebrate the legacy of Syracuse’s 15th Ward neighborhood, including a new museum with exhibits honoring Pioneer Homes’ role in public housing.

Schumer and Gillibrand are also both currently pushing for further funding for the Children Rising Center and YMCA in the neighborhood, per the announcement.

N.Y. manufacturing index dips further into negative territory in July

Manufacturing & Engineering, Subscriber Only

The Empire State Manufacturing Survey general business-conditions index slipped less than a point to -6.6 in July. The general business-conditions index is the monthly gauge on New York’s manufacturing sector. Based on firms responding to the survey, the July reading indicates business activity “declined modestly” in New York State, the Federal Reserve Bank of New

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The Empire State Manufacturing Survey general business-conditions index slipped less than a point to -6.6 in July.

The general business-conditions index is the monthly gauge on New York’s manufacturing sector.

Based on firms responding to the survey, the July reading indicates business activity “declined modestly” in New York State, the Federal Reserve Bank of New York said in its July 15 report.

A negative reading on the index indicates a decline in the sector, while a positive index number points to expansion or growth in manufacturing activity.

The survey found “new orders remained steady, while shipments inched just slightly higher,” the New York Fed said. It also found firms were “fairly optimistic” that conditions would improve in the months ahead.

Survey details

The new-orders index was little changed at -0.6, suggesting that orders remained flat, and the shipments index ticked up to 3.9, pointing to a slight increase in shipments, the New York Fed said.

Unfilled orders declined. The inventories index fell to -6.1, indicating that inventories moved lower.

The delivery-times index remained below zero at -9.2, suggesting that delivery times shortened, while the supply availability index was zero, indicating that supply availability was “unchanged.”

The index for number of employees was measured at -7.9, pointing to another month of employment contraction, while the average-workweek index came in around zero, suggesting that hours worked “held steady.”

The prices-paid index edged up slightly to 26.5, indicating that input prices continued to rise modestly, while the prices-received index came in at 6.1, indicating that selling-price increases remained “quite minor,” the survey found.

Firms remained “fairly optimistic” about the outlook, the New York Fed said. After climbing sharply the prior month, the index for future business conditions was just slightly lower at 25.8, with 41 percent of respondents expecting conditions to improve over the next six months.

However, the outlook for employment growth “remained weak,” and capital-spending plans “remained sluggish.”

The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.

New Syracuse men’s basketball general manager begins work

Sports, Entertainment & Tourism, Subscriber Only

SYRACUSE — Syracuse University’s new men’s basketball general manager has started his duties in the newly created role. Alex Kline, who graduated from Syracuse University in 2016, joined the Syracuse basketball staff after four years as a scout with the New York Knicks NBA team, per the university’s June 28 announcement. He started the new

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State pension fund posts 11.5 percent return in fiscal year

Insurance & Financial Services, Law, Accounting & Taxes

ALBANY — The New York State Common Retirement Fund produced a return of 11.55 percent for the state fiscal year ending March 31, 2024. That’s

LaFave appointed State Fair director as event approaches

Sports, Entertainment & Tourism, Subscriber Only

GEDDES — Julie LaFave has spent much of 2024 serving as the interim director of the New York State Fair. She assumed the top leadership role after the state announced the departure of previous director Sean Hennessey back in February. On July 10, Gov. Kathy Hochul removed the interim tag. LaFave served as the State

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GEDDES — Julie LaFave has spent much of 2024 serving as the interim director of the New York State Fair.

She assumed the top leadership role after the state announced the departure of previous director Sean Hennessey back in February. On July 10, Gov. Kathy Hochul removed the interim tag.

LaFave served as the State Fair’s operations director in 2023, managing the day-to-day operations of the Fairgrounds, including the oversight of contracts, budgets, more than 50 buildings spread across 375 acres, and over 100 full and part-time staff.

Prior to joining the State Fair in 2023, LaFave was commissioner of the department of parks, recreation, and youth programs for the City of Syracuse

LaFave was selected for the position after a nationwide search that “attracted a diverse pool of highly qualified candidates,” Hochul’s office said.

“Julie’s experience as Operations Director and Interim Director, coupled with her creativity and knowledge, are incredible assets to the long-term growth and vitality of The Great New York State Fair,” Hochul said in the announcement. “I am proud to officially welcome her as the Director of one of our most beloved traditions, and look forward to working with her as we continue to invest in and grow this extraordinary showcase of New York’s farmers, products, culture, and diversity.”

As the interim director, LaFave has led the planning of the 2024 State Fair. The state contends her efforts will result in a Fair with “one of its most diverse, dynamic, and family-friendly entertainment lineups with shows ranging from acts geared toward children to Grammy winning artists and Rock-and-Roll Hall of Fame performers.”

Additionally, LaFave has worked to develop several attractions that demonstrate the importance of the state’s agricultural initiatives in boosting New York’s economy, tourism efforts, and educational endeavors, Hochul’s office said.

“I couldn’t be more excited to be named Director of The Great New York State Fair and play a role in growing a summer tradition that has captivated New Yorkers for over 175 years,” LaFave said. “I’m grateful to Governor Hochul for appointing me to this important role and to my team here at The Fair who are working tirelessly to ensure that fairgoers leave with the feeling that the 2024 Fair was one of the best yet.”

This year’s State Fair opens Aug. 21 and continues through Labor Day on Sept. 2. Admission, parking, and tickets to the Fair’s midway are now on sale and can be purchased by visiting the State Fair’s website.

Comptroller prompts Little Falls to adopt 2021 audit recommendations

Law, Accounting & Taxes, Mohawk Valley

LITTLE FALLS, N.Y. — New York State Comptroller Thomas P. DiNapoli’s office is taking the City of Little Falls to task three years after it

Warren Real Estate expands to the Albany market

Construction, Design & Real Estate, Small Business, Southern Tier, Subscriber Only

ITHACA — Ithaca–based Warren Real Estate is venturing east with a newly opened office in the Capital region town of Guilderland. The new office continues the firm’s expansion, which until now has headed west and south of Warren’s Ithaca base. As with its other expansions, the idea originally came from one of Warren’s agents, who

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ITHACA — Ithaca–based Warren Real Estate is venturing east with a newly opened office in the Capital region town of Guilderland.

The new office continues the firm’s expansion, which until now has headed west and south of Warren’s Ithaca base.

As with its other expansions, the idea originally came from one of Warren’s agents, who suggested the market would be a good fit for the agency, Bryan Warren, president and principal broker at Warren Real Estate, says.

“She has been doing quite a bit of business in the Albany market,” he says of the agent. After due diligence, Warren says Guilderland seemed like the perfect fit for a new Warren Real Estate office.

“It’s very similar, I’ll say, to Ithaca,” he says.

Warren Real Estate got its start in Ithaca in 1953 with his grandmother, Ann Warren, at the helm. In its early years, the real-estate agency primarily served Cornell University and industries in the Ithaca area. It remained a family-only business until the late 1970s when Warren’s father, James, joined the business and began hiring other agents outside of the family.

James Warren grew the business throughout the next two decades, and Bryan Warren joined the agency in 1998, starting in sales before taking over when his father retired in 2005.

Warren Real Estate continued to grow, adding new agents and gradually spreading beyond the immediate Ithaca area.

Today, Warren Real Estate has eight offices — two in Ithaca along with locations in Corning, Elmira, Binghamton, Vestal, Watkins Glen, and now Guilderland.

“We purchased a building there,” Warren says of the new location. Located at 2555 Western Ave. in Guilderland, the building was once home to a wheelchair sales and service store. Warren remodeled the 3,000-square-foot space with 1,500 square feet of offices and conference room space for the real-estate agency and has 1,500 square feet available to lease. Ideally, a tenant in a complementary line of business, such as insurance, will rent the space, Warren says.

With the new space, Warren continued a couple of practices. The first was to buy a building because it’s important to invest in the community, he says. Additionally, about half of the real-estate agency’s locations are investment properties that include tenant space.

“We’re very well-funded and cautious to take on any debt,” Warren says, so he carefully considers any expansion projects before taking the next steps.

Warren Real Estate has already hired two new agents for the Guilderland office, while the agent who suggested the expansion is also based in that office. The agency is looking to hire more, but agents must be the right fit, says Tam Warren, regional VP and manager for the company.

Warren Real Estate is unique in a market that’s full of some small brokerages and a lot of big ones. As a mid-sized brokerage, Warren can offer the best of both worlds with all the technology, “but we’re still able to give that quality service and personalized touch,” she says.

The agency also focuses on the success of its agents, wanting them to pursue real estate as a full-time career and not just as a side hustle, she says.

“We have a full-time company trainer,” she notes, that helps agents expand their knowledge base to provide the best possible service. That’s especially important in changing times like now, she adds, when changes by the National Association of Realtors mean that beginning on Aug. 17, everyone working with a realtor will have to sign a buyer-representation agreement.

“We’re staying ahead of the curve with training,” Bryan Warren notes.

While the agency works hard to keep on top of technology and industry changes, one thing that doesn’t change is the way it does business. Warren Real Estate remains family owned and committed to supporting its agents.

Looking ahead to future expansion, Bryan Warren says he’s not ruling anything out, but doesn’t have any plans either.

“As any opportunity comes our way, we’ll consider it,” he says, adding, “We recognize bigger isn’t always better.”

The agency plans to host a ribbon cutting at the Guilderland office at a future date.

Warren Real Estate employs about 175 agents and handles more than $600 million in annual sales.

Commercial market remains on steady heading, banker says

Construction, Design & Real Estate, Banks & Credit Unions, Subscriber Only

SYRACUSE, N.Y. — The commercial real-estate market in Syracuse and surrounding areas remains stable post-pandemic, bucking the trend some other cities are seeing with increasing vacancy rates. The much-feared recession hasn’t happened, says Lindsay Weichert, senior VP and commercial group practice manager at Community Bank, and the market has avoided any big swings. Across the

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SYRACUSE, N.Y. — The commercial real-estate market in Syracuse and surrounding areas remains stable post-pandemic, bucking the trend some other cities are seeing with increasing vacancy rates.

The much-feared recession hasn’t happened, says Lindsay Weichert, senior VP and commercial group practice manager at Community Bank, and the market has avoided any big swings.

Across the nation, news headlines have decried vacant commercial spaces in urban areas, but Syracuse just isn’t seeing that, she says.

“Generally, it’s been fairly quiet,” Weichert says. There is some movement, much of it is businesses moving between locations, which isn’t impacting the overall vacancy rate.

According to the Downtown Committee of Syracuse’s Spring 2024 commercial occupancy report, the vacancy rate for Class A space is 22.37 percent, 11.7 percent for Class B accommodations, 39.64 percent for Class C space, and 79.36 percent for manufacturing space.

On the flip side, retail space saw an increase in occupancy, dropping its vacancy rate to 19.5 percent.

“We’re definitely starting to see more stores coming in than leaving,” Weichert says of downtown. According to the report, 12 businesses closed between September 2023 and April 2024, but 14 new businesses opened during the same period.

Downtown appears to be bustling, Weichert says, with increased foot traffic and full parking garages. She attributes that in part to more people returning to in-person work at the office following the pandemic.

Looking ahead, Weichert expects the arrival of Micron to have some significant impacts on the greater Syracuse market, with increased demand for commercial space and even more demand on an already competitive housing market.

“In Syracuse and Central New York, the multifamily market is very strong,” she says, adding that Syracuse is becoming one of the most competitive markets with rent growth of about 20 percent in recent years with a vacancy rate of just 1 to 2 percent.

A few class A projects in the region have achieved $3-per-square-foot rents, while the average rent is closer to $1.52 per square foot for all classes of apartments, Weichert says.

Area experts, including CenterState CEO, say the area needs to add 2,500 new housing units annually to meet the current demand, but the average is only 350 units right now.

With Micron coming to the area, population growth of anywhere from 75,000 to 100,000 people is projected, which will definitely crunch the market even more, Weichert says.

Much of the new developments have focused on higher-income tenants, but there is a growing need for workforce housing, she says. “That’s something I think we definitely need to focus on.”

Current higher interest rates may be combining with a wait and see approach that has delayed any real housing development activity so far, Weichert notes. “Once the shovels start, that’ll be a pretty good indicator it’s [Micron] really happening,” she adds.

Another area of growth the market needs to focus on for the future is the hospitality segment, Weichert advises.

“I would say pretty definitively … we do not have enough high-quality rooms here,” she says. With two hotels recently pulling out of the hospitality business to transform into apartments and student housing, the area has lost nearly 500 rooms it couldn’t afford to lose, she says.

“The university can’t solicit NCAA tournaments,” Weichert says. “We may find ourselves off the convention circuit [too].”

She praises the city’s and county’s efforts to head off the crisis by reinvesting occupancy tax dollars into funding opportunities to spur hotel development.

“Our local politicians are definitely trying to do a good job, to be proactive,” she says.

Ashley McGraw expands into Boston area with acquisition

Construction, Design & Real Estate, Manufacturing & Engineering, Small Business, Subscriber Only

SYRACUSE — Syracuse–based Ashley McGraw Architects, D.P.C. has expanded its footprint into the New England region, acquiring studioMLA Architects of Brookline, Massachusetts, near Boston. Founded in 2006, studioMLA Architects — a 15-person architecture and landscape design firm — focuses on the design of early-education facilities along with nature-inspired playscapes for young children. The acquisition closed

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SYRACUSE — Syracuse–based Ashley McGraw Architects, D.P.C. has expanded its footprint into the New England region, acquiring studioMLA Architects of Brookline, Massachusetts, near Boston.

Founded in 2006, studioMLA Architects — a 15-person architecture and landscape design firm — focuses on the design of early-education facilities along with nature-inspired playscapes for young children.

The acquisition closed on July 1, Derek Goodroe, director of marketing at Ashley McGraw, tells CNYBJ in an email. The firm didn’t include any financial details of the acquisition agreement in its announcement.

As part of the acquisition, studioMLA Architects will become the early-childhood education studio within Ashley McGraw Architects. In addition, Mike Lindstrom, studioMLA founder, will become the seventh partner of Ashley McGraw.

“As we emerged from the challenges of COVID, a vital component of our strategic plan was to build a more resilient business by diversifying our markets,” Matthew Broderick, president and CEO of Ashley McGraw Architects, said in a statement. “We aimed to build one of the best community-focused design practice in the Northeast and Mid-Atlantic, expanding our capacity to make an impact and creating more opportunities for staff. This strategic acquisition provides Ashley McGraw a Boston–based office and a national practice centered on early childhood education, expanding our demographic diversity to include a much younger age group and anchoring our geographic diversity in New England.”

“To acknowledge studioMLA’s national reputation and longstanding partnerships,” the firm will use a dual logo during the transition, Goodroe tells CNYBJ. As the integration progresses, the studioMLA name will “gradually phase out, culminating in full alignment” under the Ashley McGraw Architects brand and logo, he adds.

As the founding principal of studioMLA Architects, Lindstrom has more than 30 years of experience and specializes in the design of play and learning environments for children. He has been a member of the National Association for the Education of Young Children (NAEYC) and regularly presents at the group’s annual conferences nationwide.

“We are excited about the new opportunities and resources that this strategic partnership provides to our clients and to the studioMLA team,” Lindstrom said in reaction to the acquisition. “Given the similarities in cultures and shared focus on high-quality design, I anticipate a seamless transition and look forward to a host of new possibilities.”

The acquisition furthers Ashley McGraw Architects’ geographic footprint in the Northeast and Mid-Atlantic, the firm said. The new Boston–area office joins the firm’s headquarters in Syracuse and its office in Washington, D.C. to bring Ashley McGraw Architects’ total employee count to 79.

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