Business

Some 40 companies in Genesee County that receive Empire Zone tax breaks seem to be doing what the program intends -- create jobs -- according to a press release from Empire State Development.

But many others across New York are not, so today authorities notified about 1,600 companies that they are likely to be decertified.

No Genesee County companies made the "bad" list. Three companies are apparently being asked to supply more information.

For more on the new site law and the letters, check this Democrat and Chronicle story.

Here's the list of Genesee County companies who were notified they will retain certification:

Paramount Computing Associates, LLC
Altamar New York, Inc.
Tompkins Trust Company
Precon Thermoforming, LLC
PCore Electric Company, Inc.
Pioneer Credit Recovery, Inc.
Delagrange Properties
Vantage Equipment, LLC
Lapp Insulators, LLC
LeRoy Plastics, Inc.
Fontrick Door, Inc.
K2 Plastics, Inc.
C.H. Wright Distributing Corp.
Wright Associates, L.P.
Summit Lubricants, Inc.
Liberty Pumps, Inc.
Icon Design, LLC
Automotive Corp, Inc.
Prime Materials Corp.
Regency Hospitality, Inc.
Chapin International, Inc.
Oxford Hospitality, LLC
ProTech Automation, LLC
United Parcel Service
Tompkins Insurance Agencies, Inc.
Duro-Shed, Inc.
Oxbo International Corp.
Yancey's Fancy, Inc.
Provitello, LLC
Paul Marshall Produce, Inc.
Ad Tech-Graph, Inc.
K-2 Industries, Inc. d/b/a Pavilion Gift Co.
O-AT-KA Milk Products Cooperative, Inc.
Wellsville Carpet Town, Inc.
Brothers International Food Corp.
Allied Building Solutions, LLC
Traco Manufacturing, Inc.
Highway Safety Devices International Corp.
Graham Corp.
Pyramid Prosthetics, Inc.

The following three companies have been asked for more information:

Millwork Solutions, Inc.
Genesee Gateway Development, LLC
Pembroke Park Development, LLC

Here are the three lists for the whole state in PDF format:

• Retention
• Questions
• Possible Decertification

It seemed like a good idea at the time: Le Roy resident John Garner happened to own an old DOT variable message sign, so he offered it as a promotional device to the organizations and businesses of the village.

We reported on the sign in January. The sign was placed on Route 19 and promoted local businesses and community events.

Just as spring started to get sprung, the sign disappeared.

Yesterday, Ann Walters, owner of the Hobby Horse on Main Street, told me the Department of Transportation asked that it be removed.
 

"What a marketing technique," said, Walters, who regrets seeing the sign disappear. "I wish I could say I thought of it."

She said it did help bring business into the village.

Walters impression was that the DOT didn't like one of their signs being used to advertise businesses, and there were concerns about it being a distraction, that the sign should be used only for its intended purpose, which is providing traffic information for drivers.

"How can you control use of a sign when you sell it?" Walters asked. "If you want to control it, you don't sell it."

Garner couldn't be reached for comment (Walters identified Garner as the owner of the sign).

DOT regional spokesman Lori Maher said there's an explanation -- not necessarily simple, but an explanation nonetheless -- for the DOT's position.

The state controls the right-of-way on state routes, which is 66 33 feet (66 total) on either side of the center line (though there are numerous exceptions and variables, so that measurement may not apply on this section of Route 19). There are also strict regulations dealing with commercial sites in visual range of a state road.

Even if the sign was outside of the right-of-way, Maher said, it would still violate sign advertising rules.

"The whole purpose (of these regulations) is to restrict the proliferation of signs containing all kinds of messages, which becomes clutter and a safety issue," Maher said. 

The rules are both state and federal and have their roots in the 1965 Highway Beautification Act, she said.

For more information on the NYS sign policy, click here.

Genesee County is apparently on the short list of potential locations for a new data center for Internet giant Yahoo!, according to the Buffalo News.

If Yahoo! located the center in Genesee County -- or Orleans -- the new facility would generate only 50 to 100 jobs, but it might spur new high-tech growth in the region, according to the article.

Yahoo likes the region for three reasons, Schumer said.

It has a well-educated labor force. And because the data center would house computer systems and other equipment, the company likes the cooler climate, Schumer said.

"In this case, our cool Western New York temperature benefits us," Schumer said.

The company also needs a good supply of electricity, and it prefers clean energy, the senator said.

Of course, when Google was looking at WNY for a data center, it couldn't come to an agreement with NYPA on electricity for the facility.

Genesee County farmers may soon have an opportunity to see their products sold in urban farmers markets in New York City, thanks to a bill unanimously passed by the State Senate last month.

The program creates a revolving loan program to help entrepreneurs open farmers markets in NYC's urban neighborhoods, providing residents in those neighborhoods with fresh farm products from New York State farms.

“One of our goals as a state must be to put quality New York produce from our farms on the plates of New York consumers,” said sponsor, Senator Darrel J. Aubertine (D-Cape Vincent), a retired dairy farmer who continues to raise livestock and grow crops on his farm in Northern New York. “This legislation is an important step toward achieving that. By giving consumers the opportunity to buy the highest quality and freshest products from New York farmers, we are giving our farmers new opportunities to sell their products, bringing healthy foods to underserved communities, and helping our environment by encouraging people to buy local.”

Hat tip to Lorie Longhany for finding this bill.

Three shopping plazas, including Tops, have been put up for sale by the conglomerate that owns them.

The Buffalo News reports the sell-off are part of a larger effort by Developers Diversified Realty Corp. to unload 52 shopping plazas in 20 states, valued at about $1.9 billion. Fourteen are in Western New York.

Also slated for sale locally are Batavia Commons and B.J.'s Plaza.

Personally, I find eating at a locally owned restaurant more satisfying. The menus items are generally more interesting, the food preparation more unique, more flavorful and more of my money is staying in the local community.

Starting tomorrow, it's the Greater Rochester Area Local Restaurant Week.

Sponsored by by LocalFoodService.com and the Greater Rochester Chapter of the New York State Restaurant Association, the week is designed to raise awareness of local restaurants, with participating restaurants offering special discounts.

In Genesee County, participating eateries are: Alex's Place, Sunny's Restaurant and Lounge, D&R Depot Restaurant and Red Osier Landmark.  A complete list of participating restaurants can be found here.

Whether a participating restaurant or now, Genesee County is fortunate to have dozens of outstanding locally owned, independent restaurants. So this week, eat out at least one evening and skip the chains. Pick a local restaurant, maybe one you've never been to before, and treat yourself.

And look on The Batavian this week for Deals of the Day from Larry's Steakhouse, T.F. Brown's and Main St. Pizza Company.

Maybe it was the time, as one speaker noted, but for as controversial as the Masse Gateway Project has seemed, the turnout at tonight's public hearing was disappointing. Only five people got up to speak.

Below are videos of each of the speakers. Note that I didn't necessarily capture the entire speeches of each person, though in some cases I did.

Calista Miakoda, a second-hand clothing and accessory boutique, opened today on Ellicott Street in Downtown Batavia.

Owner Kaitlin McGratf is 19 and spent her whole life in Genesee County, growing up in Bergen.

She's dreamed of owning her own clothing store since she was 12, she said, which is when she picked the name for the business. She doesn't remember which language the words come from, but Calista means "most beautiful" and Miakoda means "night sky" (roughly).

"My dad always owned his own business," Kaitlin said. "I don't like working for other people too much, and I thought it would be fun (to own her own business). It's (clothing) has always been a hobby of mine."

The regional real estate market may be picking up steam, but the impact is muffled in Genesee County, according to Howard Cohen, owner of FearyCohen Realty in Batavia.

Cohen said since the Batavia area is considered a bedroom community -- meaning a lot of folks commute elsewhere to work -- it doesn't get big ups or downs in the market that metro and resort areas do.

"We have a stable market," Cohen said. "Most people tend to stay in the area, even when they buy up."

The Democrat and Chronicle reported this weekend that a tax credit of up to $8,000 for first-time home buyers is heating up home sales.

"The tax credit is making homes go off the shelves," said Garry Britton, an agent at Nothnagle's Fairport office.

Homes priced below $150,000 in good condition are moving swiftly, followed by those under $200,000.

The tax credit is available for first-time buyers, and returning buyers who haven't owned a home for at least three years, who purchase a home by Dec. 31. It allows them to get a tax rebate of up to 10 percent of the selling price, up to $8,000.

Existing home sales for January through March were 1,648 compared to 2,112 in the first quarter of 2008. That's a drop of 22 percent, according to the report released Thursday by the Greater Rochester Association of Realtors. The median house price of a house was $105,000, with half higher and half lower in price, which represents a 3-percent decline.

The data spans a 12-county area from Seneca Lake to Genesee County and Lake Ontario to the Southern Tier.

The tax credit may help improve those numbers, but it probably won't have much impact locally, according to Cohen.

"We don't have a lot of first-time buyers here," Cohen explained. "We're still in a bit of a slump, but sales are a little stronger that in the last period of 2008."

The folks at Bob Harris Realty said they are optimistic that the tax credit will help boost sales, plus buying typically picks up in springtime.

Real estate advisers say to avoid low-ball offers in these categories and to expect a negotiating window no greater than 5 percent.

Ken Mistler gave me a deluxe tour this morning of the gym at the corner of Jackson and Main he hopes to open in about six weeks.

The picture above is of a staircase that will lead to the lower level work out area and men's locker room. Mistler said a previous tenant built the staircase, but when the city would not let the business put an entrance to the building on Jackson, the staircase was floored over.

I copied the photo off the Facebook page Ken set up for Next Level.

Mistler seems to be putting forth the effort to create a first-class gym. The building is being completely renovated with new electrical (an upgrade required by new building codes implemented since the building's 1967 construction), new heating and cooling and such attention to detail as ceiling lights that defuse light so that people laying on a bench lifting weights won't have a bright light shining in their eyes.

There will also be a full sevice coffee bar accessible from Main Street.

The four-level building will also eventually serve as Mistler's home. He's building a residence on the fourth floor.

When I saw how much work is left to be done, I expressed surprise that it would take only six more weeks of work to get the facility open, but Mislter said the hard work is done (he did much of the jack-hammering in the cement floors himself to improve drainage (did you know there is an artesian well under that part of downtown?) and lay in new plumbing in the basement).

Previously, Ken told me a number of membership have already been sold -- and who can argue with the price? People can join for as little as $20 per month.

Mistler's gym looks like it's going to be a great addition to downtown, helping to bring a lot more people into the center of the city on a regular basis.

Author Lorna Bartlett was the guest of Present Tense for a book signing on Saturday, and she left an apparent fan of the charming shop on Washington Avenue.

She writes in her blog:

What a terrific store! Housed in a gorgeous old Victorian home, the shop (inside and out) is painted in wonderful colors. There are several rooms filled with books, a selection of coffee and teas, children's toys (and books!), candles, hand-sewn purses (I was really tempted by those), pretty teacups, a gallery of original photographs, magnetic poetry kits, and lots of other marvelous things. I admit, I did succumb to temptation and bought a package of Who Dunn-Its sticky notes.

If you missed the signing, Bartlett left some signed books at the store. 

Check her post for more details about her afternoon at Present Tense and some pictures she took of the store.

Buffalo attorney Jim Ostrowski lost the first round in his legal fight against New York State grants and government loans to businesses, but he's pushing forward with his crusade against "corporate welfare."

GCEDC's VP of marketing and communications, Chad Zambito is concerned that efforts such as Ostrolwski's could undermine economic development tools such as empire zones and damage efforts to bring business to Western New York.

"What it really does is it sends ends a message to site selectors nationwide that New York is really unfriendly to business," Zambito said. "It certainly sends a message to business people who might be looking at New York State that we might not be the most stable environment."

Zambito said Ostrowski's effort, if successful, would hurt the state because of New York's excessive tax burden.

Ostrowski doesn't buy it.

"That’s a really bad argument," Ostrowski said.  "If you look at Pennsylvania and Ohio, to reduce our taxes to their level, we would have to cut $40 billion out of the budget. Now corporate welfare only moves around about $1.5 billion per year, so it’s not an effective tool to compete with other states (with lower taxes)."

A lawsuit filed by Ostrowski on behalf of a number of people claims that New York's state Constitution forbids government loans and gifts to private enterprises, and for good reason.

Part of the lawsuit reads:

Prior to 1846, the State of New York provided large loans and grants to private
business allegedly for economic development.

When many of these projects failed, state taxpayers were left with a fiscally
unstable state government and much higher taxes to pay off loan guarantees.

To remedy this problem, the state constitution was amended in 1846 to ban loans
to private firms.

The voters approved the amendment, 221,528 to 92,436.

In 1874, the provision was expanded to include a ban on giving the money of the
state to private firms.

State lawmakers sought to amend the Constitution in 1967, but voters defeated the proposal by more than two million votes.

"In the years that have passed, state officials have acted as though the 1967 amendment had become law," the lawsuit reads.

Ostrowski lost his lawsuit, but the decision is now on appeal.

"There is no scientific or economic study that has ever shown these (economic development) policies to be effective," Ostrowski, adding later, "The main question is what gives these bureaucrats that run these agencies any expertise at all what business projects to pursue. Those decisions should be made by entrepreneurs in the market place."

The ECEDC has a number of promising projects on the board, however, has three major projects on the board, including Genesee Valley Agri-Business Park, Upstate Med & Tech Park and Commercialization Center, and the Science, Technology, Advanced Manufacturing Park in Alabama. There is also the possible revitalization of the Harvester Center area, which could also potentially use some extra government funds.

Zimbito doesn't think the lawsuit is any threat to these ongoing projects, but he does think it runs counter to the stimulus incentives being laid out by the Obama Administration.  The suit, if successful, could prevent New York from getting further stimulus aid, with that money going to other states instead.

"The stimulus money is taxpayer dollars to spur investiment and stimulate the economy," Zambito said. "That’s based on a lot of grants and a lot of low interest loans. So I’m not sure how that’s going to play with all this stimulus money that’s coming through state channels. I think that would put a damper on it, and by the sound of it it would put a halt to stimulus dollars as well."

Naturally, given that this is New York, Ostrowski may not even need to win the appeal to achieve the same effect. According to this Dave Catalfamo column, the governor is doing his best to kill of empire zones by making them uninteresting to migrating businesses.

Manufacturers, which are already in danger of joining New York’s Karner blue butterfly on the endangered species list, are now required to generate $10 in economic activity for every $1 in state tax breaks. And the state is ... demanding non-manufacturers to deliver a 20-to-1 return.

Finally, when thinking about government money going to private enterprise for large scale projects, it's always best to keep the downtown mall in mind.

Here's a good bit of writing and reporting from Scott DeSmit on the pinch, if not outrage, from local business owners over the fee and tax increases in the new state budget.

Great lead:

The New York state budget will be enacted this week and you'd be hard-pressed to find anyone who isn't harboring thoughts of revolution.

The print edition includes a good breakout box of 19 increases hitting consumers and businesses.

Among the largest, up to 5,000 percent increase in cigarette taxes.  As Scott writes, you read that right: 5,000.

Jeff Heubusch, owner of Southside Deli on Ellicott Street in Batavia, said he already knows what he's going to do about the new fee. He's not going to pay it.

"I definitely won't carry cigarettes," he said. "The profit margin just isn't worth it. If I stop selling them, so what? Our main business is food."

Heubusch said he would have to pay $2,500 to sell cigarettes.

"We used to sell 150 cartons a week in the 1990s," he said. "Now, we're lucky to sell 20 a week. I'm sure there's a motive for this. I think what's going to happen is you'll find that instead of 50 places to buy cigarettes, you'll be down to two or three."

Read the whole thing.

Local dairy farmers are hurting, according to Dean Norton, president of the New York Farm Bureau.

Prices have plummeted -- because of decreased demand for dairy products at home and abroad -- while costs have increased substantially. 

Currently, milk is selling for $10.50 to $11.50 per 100 weight (about 8.5 gallons), while the cost of production is $15 and $16 per 100 weight.

Last year, milk sold for about $20 per 100 weight.

"The area economy stinks and it's a tough year," Norton said. "Receipts are down and individuals might be exiting the dairy industry."

Exports have dropped and domestic demand has been driven down as people eat out less during the recession, so there is shrunken demand for dairy products.

To help address the plunging prices, Cooperatives Working Together (CWT) has initiated a herd retirement program, which will help reduce the number of milk-producing cows and lower supply.  Bids must be postmarked by May 1.

Dairy farmers throughout the nation are hurting according to The Rural Blog:

“The number of dairy cows being sent to slaughter has risen by about 20 percent from last year, as desperate farmers cull their herds and sell at fire-sale prices,” Sue Kirchoff writes for USA Today. “Adding to the problem, banks are less willing or able to extend farmers’ loan payments amid the financial turmoil.” John Murawski reports for the News & Observer in Raleigh, "Several dozen dairy farms in North Carolina are expected to go under this year." (Read more)

The National Dairy Federation has called on President Obama to aggressively address the problem, or thousands of jobs could be lost.

“There are several reasons for the implosion: oversupply, falling export demand and continued high prices for supplies such as feed,” Kirchoff explained. “The dairy sector in the past has been less prone to huge price swings than other areas of agriculture, but that’s changing as the industry relies more on the markets and less on government programs.”

Agriculture Secretary Tom Vilsack announced a program to buy 200 million lbs. of nonfat dry milk surpluses for domestic low-income programs.

Neighboring Wyoming County is being especially hard hit by the downturn in the dairy market, according to a story by Tom Rivers.

The $60 million in reduced revenue is compared to 2008 prices, when dairies averaged about $17.50 per hundredweight. This year the prices are forecast to average $12.80 for the year. The prices are expected to climb above the current $11 level and top $14 in September, which is still below most farms' production costs.

The county's 47,970 cows, which outnumber the county's residents, produced $178.9 million worth of milk products in 2007, by far the most in the state.

"The market is saturated and these prices are likely to be with us until mid-summer," Norton said.

Batavia-based Graham Corp. announced new orders worth about $3.5 million for surface condensers to be installed in two oil refineries in India and South Korea and a fertilizer production facility in the United States.

The orders follow quickly another $5 million in sales for the company's ejector systems, according to the Democrat and Chronicle.

CEO James Lines said:

"While we expect the global recession and tight credit markets to continue to affect the pace and timing of new order placement ... we view the potential bookings pipeline favorably," Lines said. "We believe the long-term fundamentals supporting increased global demand for energy are solid."