Business

Batavia's City Council voted in favor of a measure last night that would use $425,000 to "design work for a half dozen" infrastructure projects, WBTA's Dan Fischer reports. That investment of $425,000 is supposed to yield $4.5 million worth of construction, on projects such as: undersized water mains, waterline break history, inoperable valves, sanitary sewer line conditions and road conditions.

Fischer explains that the $425,000 would be part of the aid received by the city from the Video Lottery Terminal Aid that was received earlier this year.

Councilman Frank Ferrando is quoted in the Daily News this morning as saying: "If we can get $4.5 million to get jobs that we have to do and can get it for an investment of $425,000, I think we have to do it,” he said. “There’s going to be a lot of money out there."

No one, however, explains how any of this would work. In fact, rather than explaining it, the article today in the Daily has only this to say:

It is a gamble. Assistant Manager Sally Kuzon said there’s no guarantee of the city actually getting the money from the state Economic Facility Corp. But spending $425,000 to design those six projects is a move toward it, she said.

It's a gamble!? So the city plans to gamble with gambling money. A little irony, perhaps. Furthermore, where did the state Economic Facility Corp. come from? No one is explaining this to us, folks. All we hear is Frank Ferrando saying: 'Hey, we can turn $425,000 into $4.5 million. Poof! We're rich and we have jobs. How can we not do this?'

What everyone has failed to note is that the hoped-for millions that would magically be available if only the city spent this $425,000 are part of the proposed economic stimulus package that just last night was the subject of a national news conference.

From a letter drafted by Assistant City Manager Sally Kuzon:

I have been monitoring the progress of the President's proposed Economic Stimulus Package over the last several weeks in an attempt to place the city in a competitive position to receive funding for infrastructure improvements.

Kuzon goes on to say that while there has been "tremendous debate" over just what will happen with the stimulus, she believes that "infrastructure improvements nationwide will have a prominent position within this initiative." In other words, the city should get it on it. We should submit "shovel ready projects" to the state's Economic Facility Corp., which will adminster the federal funds allocated to New York.

She continues:

Although there is a certain amount of uncertainty as to whether or not the programs will include loans or grants or whether the program will extend to projects not currently listed on the (Intended Use Plan); it is clear that only shovel ready projects submitted to the EFC will be considered for the current or future funding rounds. Based on this premise, I am recommending several projects for Council to consider submitting tothe EFC for economic stimulus funding.

We mentioned some of those projects above. The $425,000 requested by Kuzon would be used to design the projects and submit the designs to the state so that they would be eligible to receive the funding if and when it became available. However...

It is unknown at this time if the design phase or only construction cost will be eligible for reimbursement. If for some reason the city does not receive economic stimulus funding the projects will be designed and ready for construction as funds or grants become available in the future.

In a letter drafted to the City Council on Kuzon's proposal, City Manager Jason Molino writes: "The crux of this stimulus package is to get people back to work receiving pay checks; with $4,500,000 of infrastructure improvements that goal will be acheived."

Nowhere does anyone explain how these infrastructure improvements will acheive the goal of "getting people back to work." Kuzon never once takes up this issue in her letter, and nothing from Council addresses this either. We only hear people tell us: It will happen.

Molino justifies this use of these funds in this way:

Utilizing a portion of this years (sic) VLT aid to support the project design costs is both appropriate and realistic considering the City did not budget for this one-time revenue and these costs are one-time capital costs.

Council President Charlie Mallow can be heard in an audio quote on WBTA as saying that Batavia needs to do this. Otherwise, the jobs will go to New York City. He wrote to us in an e-mail this morning:

The action council took last night was about job creation right here in Genesee County, instead of New York City. Regardless of how we feel about the spending on the national level, we owe it to our residents to secure our share of this huge stimulus package. We are all going to pay for it whether we have enough foresight to act or not on a local level.

We're waiting to hear back on how this will create jobs. See below.

Click here to download the letters by Molino and Kuzon, along with descriptions of the infrastructure projects noted in the proposal.

Councilmen Sam Barone and Bob Bialkowski were the only two members of Council who voted against the measure, saying that the state aid could be used instead to reduce the city's deficit or for "future needs."

Updated (8:28 a.m.): Council President Charlie Mallow responded to our question of how this stimulus money would create jobs.

Any aid we receive needs to be spent on projects that are shovel ready and can break ground in 180 days. That means putting people to work this summer. Local construction workers would be the first ones to work or to keep on working. Then there is the trickle down affect with people who work driving trucks, making concrete, selling building supplies, laying pipe, and even restaurants the workers, etc. We as a local government decided to do what we needed to do so that our people would feel the benefits of these make work projects that will be going on around the country. I believe this depression era type projects will boost our economy up and out of the slump we find ourselves in.
 
If fully funded, these projects will rebuild parts of 11 streets in the city this year. These projects are for sewer, water, road surface and sidewalks, and most call for complete reconstruction. This work will be on top of the work being done on Walnut, Oak and the $150,000 of sidewalk repair already budgeted this year. There will be a lot of activity going on this summer to rebuild the city from the ground up.

Update (8:35 a.m.): A very timely headline in the Buffalo News this morning reads: New York loses millions in revised Senate stimulus bill. From the article:

Gone entirely is funding for higher education construction, which, under the House-passed version, could have meant up to $242 million for the University at Buffalo.

Similarly, the Senate eliminated funding for school construction. The House bill would have provided $31.9 million for the district of Rep. Brian Higgins, D-Buffalo.

Senators also halved a $79 billion fiscal stabilization fund for the states. While much of the aid to local school districts remains intact, the cuts included a $25 billion fund aimed at helping governors balance their budgets.

Will we see even more funds cut from the stimulus by the time it is passed?

Many of us been have wondering about the fate of the Pontillo's restaurant in Batavia ever since the doors closed in November, followed soon after by the news that the business owes more than $112,000 in back state taxes. Few could argue that they had one of the best lunch buffets around.

Owner Sam Pontillo has been assuring people all along that the restaurant would open up again... soon... even if he had to find some other location in the city to do it. Initially, Sam told the Daily News that the restaurant was closing down for renovations and would re-open in a couple weeks. Of course, that didn't come to pass, and in the latest article in the Daily, he's quoted as saying: "people will be able to get a Pontillo's pizza in Batavia by April 1."

Sam's brother John Pontillo spoke with us by phone this afternoon. John is currently living and working at a country club in Minnesota, where he has been since his unceremonious dismissal from the family business by his two brothers, Sam and Paul, around this time last year.

Most of you will recognize the name John from what you have read in the Daily's coverage. Most recently, for example, Sam spoke of John when he told Joanne Beck that he "had to pay the tab of his brothers' neglect."

"They left an unpaid tab. Once again, I'm footing the bill," he said Thursday.

Those taxes were the responsibility of siblings John and Paul, who ran the Batavia Pontillo's Pizza & Pasta until Sam Pontillo closed it in early November, Sam said. He bought his current Le Roy Pontillo's site in 2007.

In every article in the Daily News, John has been accused by his brother Sam of being responsible for "neglecting" the finances and failing to pay the taxes for the business in Batavia. Sam also told the newspaper that he had no foreknowledge of the unpaid taxes.

That's just not true, John told us today. Sam knew about the tax problems all along, and this wasn't the first time that it happened, he said.

Back in 2006, both restaurants, in LeRoy and Batavia, were cited by the state for owing back taxes in excess of $350,000. At that time, Sam was in charge of all the operations, says John. "He was president of both locations."

Later on in 2006, it was decided that the Batavia and LeRoy locations would be incorporated seperately as Sam's Tomato Pies and LeRoy Dough Boys, respectively. On the articles of incorporation for the LeRoy restaurant, Sam is listed as owner and as president. His brother Paul is listed as secretary. As for the Batavia restaurant, Sam's mother, Elizabeth, is listed as owner, Sam as secretary and Paul as president.

John is nowhere named as an officer of either company. He insists that he was only ever a paid employee like everyone else who worked there. That he was fired so precipitously last February only attests to that.

"They say that it happened on my watch," said John. "I was never an officer of the company. I was just an hourly employee. That's all I ever was."

John could not comment in detail due to the pending litigation between the brothers to determine who will take over the Batavia restaurant. They are also waiting to execute the will of their mother, Elizabeth, which could help decide some of the details of who owns the rights to the name: Pontillo's.

John did say, however, that the brothers need to move fast to come to an agreement, because the mortgage company, which has not been paid since Novemeber, could foreclose on the property by the end of the month.

Seaman's Hardware is Genesee County's oldest family owned business. I spent some time yesterday just browsing through the store and reliving my past. I remembered the many times I went with my Dad to the local Hardware store when I was little. I’d wander the isles just looking at all the things on the shelves and wondering what I could build with them. My Dad is a pretty handy guy, he did everything at home himself. He built a house, barns and sheds. He did plumbing, electric, roofing and mason work. I learned a lot from him, mainly that I prefer to write a check when my house needs repair. (I never was as good at it as he was).

I spoke with Jim Seaman about the history of the Hardware store. He said he is fourth or fifth generation. The reason for this is he can’t find any receipts from Charles. He has the paper trail for Ezra, Web, Gail and himself. Since he doesn’t have any paper evidence of Charles and the sales from the wagon he considers it a fourth generation business. What an enormous accomplishment to keep a family business a float for 134 years. Surviving the Great Depression and who knows how many recessions. Keeping a business in the family through two World Wars and numerous other ones. Just being able to operate any business in this State is remarkable. To keep one this long and under the same name is astonishing. While I was there customers came in one after the other. After every sale Jim came from behind the counter and asked every one how could he help them. Every person was given the same personal attention and guidance towards what they needed. As I walked around and looked at every shelf I was amazed about the shear variety of items they had. Everything from power tools to P-traps to canning pots to ping-pong balls. With my son being a new Scout I picked him up a compass and a pocket knife (he starts working on his whittling badge this week). Even though the store may not appear very large, they seemed to have anything you would expect at real Hardware store.  Through the years he has changed thigs only when his customers wanted it. After all, you don't mess with something that works. Over the years he has added outdoor equipment and tool rentals, maybe a few other things. But he has always stayed true to the old time true Hardware store. If you need it, he's probably got it.

I asked Jim what his theory on success is, and what has lead his business to such a long history in our County. He said his key has been, find out what customers want and make sure you always have it. He continued, offer them more than just a product at a reasonable price. Make sure you give them service and stand behind it. While I was there a gentleman came in for a special light bulb that he happened to be out of stock on. Instead of saying “I’m out of them” he said “I’ll have one for you tomorrow”. He’s right. That’s the difference between selling to a community and serving one. I encourage everyone to stop in and see Jim the next time you’re on Route 5 in East Pembroke. It’s a great place and the biggest example of why it’s good to shop local. You’ll never get Jim’s kind of service at a box store.  They're located at 2602 Main St in E. Pembroke. Ph# 762-9211.

I received a bunch of e-mails about businesses around the County. I can use a buch more! If you know a business that's been here a long time, let me know and I'll feature them. Send e-mail to:    timpaineforbatavia@yahoo.com  Thanks!

A third restaurant in 30 days has closed its doors in downtown Batavia. Grugnale's Italian Deli on Jackson Street is shuttered today. A sign on the door states that the deli has closed temporarily while the owners seek out a new location, WBTA's Dan Fischer reports. "The owners there have said they hope to re-open the business," says Fischer.

South Beach on Main Street and Sallome's Deli on Oak Street have also recently closed their doors.

Don Burkel, Executive Director of the Batavia Business Improvement District (BID), said there is hope and incentive for future business owners and shoppers downtown. Burkel said some of the incentives currently in the works could include: a coupon book and a shop-and-dine night—during which downtown shoppers can get discounts at local eateries and find sales at local merchants. Businesses may also look to benefit from cooperative advertising with the media.

The BID continues to plan events coming up in March and April and has already confirmed the bands, the Formula and Ghost Riders to perform at Jackson Square this summer.

        I'm starting a new weekly article. Recently Howard posted an article talking about shopping locally. I spoke with him and Philip at their inaugural party about supporting local businesses but many new-comers or younger people might not know that they're here. I've been in this area my whole life and constantly still learn about businesses that have been in Genesse County for many years. We have so many places that have been here forever but do we know them all? This is where I invite all readers to comment here or e-mail me about local businesses so I can do a "spot-light" on them. I will post on Sunday each week and hopefully learn about who they are, what the do and where they can be found. Please contact me, my e-mail address is timpaineforbatavia@yahoo.com. I want to start with businesses that have been here for 80 years or more (I want to start with the ones who survived the Great Depression). I will move on to those who have been here from 50-80 years next and so on and.....  I would really like to hear from those that are still in the family, but any business that has been here 80 years or more is wonderful. I will be starting this week with Geer Farm Services in Alexander. Keep a watch for the article and please let me know about any Genesee County businesses that have been here a long time. Let's find as many as we can and support them all. Thanks, Tim Paine

One of our readers recently pointed us to a study by the Tax Foundation that lists 1,817 counties across the U.S. according to the amount of property tax as a percentage of home value. Genesee County ranks 8th. In other words, 1,811 other counties in this nation pay less of a percentage of teir home value in property taxes.

Now, we've always known that we the people of western New York get shafted as far as taxes go. But it's another thing to see it quantified so starkly. Not only is Genesee County the eighth most taxed county in the country. Counties in New York make up 19 of the top 20 in the list!

Now, folks here may rank only 193rd on that list as far as amount of taxes paid (a median $2,565), but with a median home value of $95,500, that means the taxes paid total up about 2.7 percent of the home value. Wayne County is the same. Orleans County is first on the list with 3 percent. So on and so forth for our region. Just take a look.

We asked our state representatives, Assemblyman Steve Hawley, and newly-elected Senator Mike Ranzehofer, to weigh in on this. Hawley's office got back to us last week by issuing a press release on the topic. We'll include that release, entitled: "Hawley to Legislature: Stop Property Tax Rise Now," here in full.

First, however, let's here from Ranzenhofer, who spoke with us by phone today. Ranzenhofer agreed that the result of the study was not all that much of a surprise.

"Those of us who live here, work here, are well ware of the crushing taxes across the board," he said. "The only thing that's going to revitalize the area is not the suggestion of the governor to increase taxes on everything. We need to cut taxes and cut spending to encourage job growth."

We asked Ranzenhofer what he could do in the Senate to help relieve the tax burden here in Genesee County.

"One thing is my action on the state budget," he said. "It's a little disappointing that there hasn't been more done in Albany to deal with the budget and the budget deficit. We need to very strongly oppose increases in taxes, and even take it one step further and really need (to institute) across-the-board reduction in taxes. That doesn't mean shifting the burden to counties, families and business. It means streamlining every agency and department in state government."

Ranzenhofer spoke of instituting a tax cap and really following through on the threat of a hiring freeze at the state level. "We need to create a new tiered pension system," he added. "These are all things I've talked about. I hope to introduce legislation along those lines this year."

We'll keep an eye on you, Mike.

From the office of Steve Hawley:

Assemblyman Steve Hawley (R, I, C - Batavia) highlighted the recent Tax Foundation report, which announced that Orleans, Niagara, Monroe and Genesee counties all top the nation in highest property taxes as a percentage of median home value, when calling upon the State Legislature to immediately address property tax-saving measures.  The top measure hurting property taxpayers, according to Hawley, is the estimated $6 billion in unfunded mandates pushed onto local governments and, consequently, homeowners.

"Unfortunately, all we are seeing from our state's leaders right now is inaction when it comes to solving this crisis.  As always, Albany is continuing to shift the burden, and shift the blame, for property taxpayers' ever-rising tax burden.  In fact, this proposed state budget will shift nearly $4,000 per individual taxpayer.  For our state's economy to recover, Albany needs to begin taking responsibility for its spending.  We cannot afford this year's record-breaking budget proposal and we certainly cannot afford $4,000 in subsequent tax hikes," said Hawley.

According to the Assemblyman, the solution is multi-fold, which is why he has been a vocal advocate for increasing the economic viability of Western New York in order to help lower property tax costs.  The more businesses paying property taxes, the less these taxes will be burdening homeowners. However, Hawley states, "We must do more to attract business to coming to New York and we must strengthen our commitment to keeping businesses here. We cannot expect businesses to bear the brunt of the property tax burden and still offer quality jobs.  But it is vital to our long-term property tax-relieving solution that we address business growth."

Last year, as the nation was on the brink of an economic recession, Hawley was among tax reformers who asked, "Isn't it about time New York State make some tough budget choices as well?"  The federal government stepped in with their federal stimulus checks and buy-out capital for corporations, but it was still clear that states would need to rein in spending and consider stimulus plans of their own.  However, despite this, the New York State Legislature passed the most expensive budget in state history.

This year's Executive Budget proposal breaks the spending record again, paid for by 137 new and increased taxes.  His budget proposal also eliminates the property tax rebate check and decreases STAR exemptions across the board. At the same time, this budget does not address Medicaid fraud and, moreover, by cutting education aid, it will pass along an inevitable burden to local governments.  Not only will this plan cause local property taxes to rise, but it could also cost the state over half a million jobs.  According to former state chief economist Stephen Kagann, every $100 million in new taxes imposed during a recession leads to a loss of 11,400 private sector jobs. With these tax hikes totally $6 billion, this means the approximate loss of 600,000 jobs.

To balance the State Budget and reduce the state's debt, Hawley has long called for cost saving measures, such as agency and department consolidation, such as merging the Office of Real Property Services into the Department of Taxation and Finance, saving New York State taxpayers $18 million annually.  Another $37 million would be saved by merging the Office of Climate Change into the Office of Atmospheric Research at the State University of Albany.

Hawley also has been on the forefront of tackling government waste by calling for state operating cost cuts and continues to propose cost-saving measures such as limiting the amount of vehicles purchased on taxpayer dollars by 50 percent (not including public safety vehicles such as police, fire and emergency services vehicles) to save another estimated $4 million and $25 million, respectively.  Assemblyman Hawley stated, "The bulk of the cost savings would come from finally targeting Medicaid fraud, abuse and waste.  I have long supported a complete state take-over of Medicaid. Not only would this help ensure the program is run more efficiently, but it would eliminate a multi-billion unfunded mandate currently put on our local governments and taxpayers.  Perhaps, most importantly, by forcing the state to take responsibility for the Medicaid program, it will also help make Albany more accountable and cognizant for its spending overall."

The Tax Foundation used information compiled by the United States Census Bureau from 2005 to 2007 in their report which shows that out of all counties in the nation (with 20,000 or more residents) Orleans County residents pay the highest property taxes as a percentage of their home worth at 3.05 percent.  Niagara County came in second at 2.90 percent, followed by Monroe County ranking fifth and Genesee County ranking eighth at 2.84 and 2.69 percent, respectively.  Every county topping the nation's most highly taxed counties came from New York State (rankings 1-20), with the exception of Fort Bend County in Texas, ranking in eleventh place.  The majority of New York State counties on the list came from Western New York, strengthening Hawley's assertion that economic stimulus and a drastic reduction in spending are vital to lowering property taxes.

Maybe this headline should read: How Batavia can save downtown by doing the opposite of what Rochester does... Allow me to explain. Most of us in the area remember the Fast Ferry flop. For Rochesterians, the very word ferry still stings like a jellyfish whip. In a poor attempt to promote cross-cultural relations between Rochester and Toronto, the city sunk millions into a ferry that would cart folks back and forth from the two cities. We all know where that went—nowhere.

Why? One reason that I'm guessing at, is that you're not going to boost your own city's cultural wealth by sending your residents elsewhere. Keep them here. One good way to do that is to offer low-rent studio space to artists in neighborhoods they can afford to live in. Rochester has done this on North Goodman Street, where the city's cultural center faces Village Gate, a quaint shopping center, and Anderson Alley, an old button factory turned into studio space. Ditto Artisan Works off of Winton Road.

Some of you may be wondering why we should give the artists a break. Look at New York City. Wherever artists flourish, along comes business: initially in the form of good eateries, but soon, small shops begin to pop up, followed by large banks. This, unfortunately, then leads to the phenomenon known as gentrification, when all the rich folks with a penchant for what the hipsters have built, simply move and take it over. Go to Brooklyn sometime if you don't believe me. Of course, artists alone do not create this environment. A lot of the appeal is based on a sort of myth of the authentic urban experience: a city block that looks, smells and feels like a city block should feel. It's got natives, it's eclectic, the people have roots there, and the place has a cultural vibe all its own. Again, this is the myth of the authentic urban experience. But as we know, myths are often rooted in actuality.

Rochester has much of this authenticity in many parts of the city. The idea being bandied about for Renaissance Square was designed—or so I believed—to provide a catalyst to further this sort of authentification downtown, which has unfortunately lost its flavor, its character, and, in many cases, its business. With that in mind, the city thought to build a big theater, a cultural mecca right downtown to draw folks in, rather than push them out. Flanking this theater would be a bus terminal, so people can get to and from the theater, and a satellite campus for Monroe Community College, so people can go there to learn, as well. That was the plan anyway.

From the Democrat & Chronicle:

A decision announced Monday to move ahead with the Renaissance Square project will allow federal funds to be spent on a bus station and a community college campus.

Funding for the third part of the project, a 2,800-seat theater, has not been secured and if the money isn't raised, the theater won't be built, Monroe County Executive Maggie Brooks and Sen. Charles Schumer said during a joint appearance in Rochester.

"The likelihood of federal or state funds being raised for the theater is unlikely for the foreseeable future, certainly for the next few years," Schumer said. "Given the economic situation, it's difficult to raise private funds, so moving forward with the community college and the bus terminal is very important. We don't want to hold things up any longer."

Some of you may be saying: "Big deal. No theater. Who cares." Rochesterians should care. What sort of "Renaissance" with a capital 'R' does Rochester hope to effect with a bus station and a satellite campus? How will these two components bring people downtown? Going ahead without the theater would mean, in my honest opinion, not going ahead at all, but just standing still, which Rochester has proved itself quite capable of doing over the past few decades.

So Batavia, take a lesson. Do not do what Rochester does. This does not mean sink all the tax money into expensive cultural projects. What it means is play up your strengths and appeal to the culture of your population by creating an atmosphere that is hospitable to making and performing the arts. The rest will follow.

Batavia already has the authentic urban experience on the Jackson Street block downtown: good eats at locally-owned restaurants, established shops that appeal to people's curiosity and the mall. Uh, wait a second. Scrap that last one. Literally: scrap that last one. Large-scale programs such as Summer in the City do a great job of attracting people to this part of the city. But it's a one-time, thanks for your patronage kind of event. What about micro-celebrations. How difficult would it be to close up a lane of parking across from Margueritas and the Jackson Street Grill, set up some tents, tables and chairs, and serve a summer evening outside. Maybe book a juggler or something to keep folks entertained. I'm sure there are better ideas out there.

Although technically not downtown, the Harvester Center and the many buildings around it, offers a perfect place to start incubating: businesses, artists, offices and public spaces. Maybe above all else: public spaces. Small courtyards where people can gather, grab a drink, listen to some live music, whatever. Maybe a violinist in the local philharmonic can be persuaded, via a modest monetary encouragement, to practice a few nights out in the open, outside a coffee shop that fronts a courtyard in the now verdant square that once was an indsutrial wastescape.

Whatever you do, Batavia, just don't do what Rochester does. No matter how pretty you paint it, you can't call a bus terminal a renaissance.

Well, folks... we're stumped. You see, there's this old highway traffic sign posted up along Route 19 in the town of Le Roy, just outside the village. On it, a flashing message board communicates the message: Shop Main St Leroy in glowing orange letters.

We thought, that's kind of curious. How could an old traffic sign be appropriated to advertise downtown businesses? Seems like a clever idea, and we wanted to find out more about it. Unfortunately, no one seems to know anything about it. We started with a call to the Le Roy village clerk. Sharon Jeary didn't know anything about it. She told us to call Gene Sinclair, the code enforcement officer. Sinclair couldn't tell us anything, either. He knew of the sign, but he hadn't the foggiest where it came from and who put it there. So we called the Le Roy town clerk. Nothing there either. We were told to contact Sinclair again.

Bizarre.

Anyhow, in addition to the message: Shop Main St Leroy, the sign also flashed the messages: Vintage and Vogue and Hobby Horse. Now, I don't know what "vintage and vogue" might mean, but I've been to the Hobby Horse, a neat little shop on Main Street in Le Roy that sells everything from alpaca wool socks to antique gewgaws. In fact, The Batavian interviewed the shop's owner, Anne Walters, last summer. You can watch the video of that interview and learn more about the Hobby Horse by checking out that post.

We'll see what we can find out in the meantime.

(Updated 1:00pm): It seems we've solved the mystery of the sign. Anne Walters, over at the Hobby Horse, told us that the sign is owned by a fellow in Le Roy whose sister-in-law is an antiques dealer who rents space at the Hobby Horse and... you guessed it, Vintage and Vogue, also a shop on Main Street in Le Roy. He likely bought the sign at a state auction and thought it might be a good way to advertise downtown business.

The Genesee County Chamber of Commerce has announced its 2008 Chamber Awards winners. Awards honor individuals and businesses in Genesee County that have shown a commitment to community.

This year's recipients are:

Business of the Year

Roxy’s Music Store
Rose Caccamise
228 West Main Street
Batavia, NY  14020 

Special Service Recognition: Agriculture

Tom Rivers
c/o The Daily News
2 Apollo Drive
Batavia, NY  14020

Special Service Recognition: Business

The Mancuso Family
C/O Rick & Ben Mancuso
216 Main Street
Batavia, NY  14020

Geneseean of the Year

Betty Lapp
9464 Creek Road
Batavia, NY  14020

From the Chamber:

The Genesee County Chamber of Commerce is celebrating its 37th Annual Awards Dinner which will be held on Saturday, March 7, 2009 at the Batavia Holiday Inn. This is the County’s premier event that honors businesses and individuals for their achievements in business, community service and volunteerism. Ticket prices are $55.00 per person or a table of 10 for $500.00. 
 
Come enjoy an evening of Awards, Fun, Friends & Food. This year’s theme is GROW-4U, Genesee Region Organizations Working For You.
 
If you are interested in Sponsorship Opportunities you can select from the below or contact Kelly J. Bermingham, Director of Membership & Special Events, to create a package specifically tailored to your requirements/needs. Call 585-343-7440, ext. 26 or email kbermingham@geneseeny.com.

Yesterday, we ran a post about the push by some members of Batavia's City Council to cut down on the funding for downtown celebrations, such as Summer in the City and Christmas in the City. Councilman Bob Bialkowski explained that they only wanted to limit the amount of funding available to cut down on overtime costs, but that they would not eliminate the celebrations altogether. Bialkowski justifies the push for cuts as a measure to minimize the city's property tax rate. Opponents of the cuts, however, argue that any cut in funding would shift too much of a cost burden onto the Batavia Business Improvement District, sponsors of the events.

What do you think?

Earlier this morning, one of our readers, John Roach, left the following comment:

It’s a shame that after all the hard work by BID, the 5 Republicans on City Council have submitted a budget proposal that will take enough money away from city celebrations and events that it might kill the Summer/Christmas in the City.

That caught our attention, and we set out to find exactly what the City Council had planned for budget cuts that might affect future events downtown. We asked for comment from Council President Charlie Mallow and Don Burkel, director of the downtown Business Improvement District. Burkel has not yet commented. Burkel responded via e-mail at noon today:

"There should be no budget cuts for Christmas in the City, Summer in the City or any other BID activities, as this would definitely have a negative impact on the downtown businesses.  In this time of economic hardship the merchants need these events to generate activity to attract shoppers and visitors to the Batavia Business Improvement District."

Mallow responded in an e-mail:

"I was sent a proposed amendment to lower the city's contribution from a few of the council members. Council will be talking about this proposed amendment as well as the rest that were submitted on Saturday.

"From my point of view a consensus was come to on the amount of this line item in the last budget. I do not support the cut, I think its unfair and hurts the businesses downtown and I think doing anything to jeopardize either event would lower our quality of life in the city.

"The members that proposed the amendment alluded to the idea that they had a majority in favor of the cut. I find that hard to believe."

While we were waiting to hear back from Mallow and Burkel, we also spoke with a few other members of Council: Rose Mary Christian, Kathy Briggs and Bob Bialkowski.

Bialkowski, who expressed an overall optimism about the budget process this year, said: "We're not eliminating any downtown events." Instead, he said, several members of Council were looking at ways to reduce overtime costs—especially those related to the management of downtown events—to help reduce the property tax burden. While this would not "eliminate" downtown events, it would reduce the funding available for them.

According to the budget proposal prepared by the office of the city manager, actual overtime costs so far paid out in the current budget season total more than $530,000, as listed in the budget's general fund. That total does not include such special funds as water and sewer, ambulance—in which overtime costs exceed $300,000—and the mall, which for some reason is maintained as a separate fund.

Nevertheless, most of those overtime expenses fall within the budgeted amounts. In fact, both fire and police overtime costs were under. For some reason, the communications department totaled more than four times what was budgeted. To date, that department has accrued $28,612 in overtime costs, while a mere $7,000 was budgeted.

What's most apt here, however, is the overtime cost for "community celebrations," which has totaled $4,997 so far. Those are the costs that Bialkowski has called into question. He says that if the city could get more use out of volunteers for the downtown celebrations and shift the schedule for assistance from public works employees from the weekend to Friday and Monday, the cost would drop from, say, $1,000 to $500, since overtime costs would be avoided.

"I'm a big believer for volunteering for events," he said. "We're just trying to keep any property tax minimal. We're looking at all costs, trying to keep it down as low as possible."

Cutting back on overtime costs are just one way he would hope to get expenses down for the next budget season. He has proposed a list of amendments, he says, that would reduce about $70,000 in "miscellaneous items" and by sharing services and getting more time out of certain city vehicles.

Christian and Briggs said that the cuts proposed by Bialkowski and others would, in fact, cut the funding for downtown events and shift the cost burden onto the BID, which would not be able to manage, and so be forced to eliminate the events.

"Some council members have recommended cuts in this area," said Briggs in an e-mail. "One suggestion was cutting it from $3,000 to $2,000. Nothing is definite yet. In my opinion the events shouldn't be scrapped. I'm not going to support this cut. We can't expect the Business Improvement District to pick up all of the cost, and we have to have some celebrations, right!"

Christian is of the same mind. She says that she is "not one of them," referring to some other members on Council who are trying to cut the funding for downtown events. Instead of those cuts, she said that she asked for City Manager Jason Molino to see if he can cut 1 to 1 1/2 percent from elsewhere in the budget. She hopes to get an answer on where and how that might be pulled off at the session Saturday.

"We'll see if Jason can find cuts in certain areas," she said. "The budget is astronomical. It's $24 million. We have to be realistic. The economy is a disaster. The stock market is a disaster. Even the president has said, it's not up to government, it's up to us. It's up to the people to make a change."

From the Harvester Center:

The world’s first business incubator, The Batavia Industrial Center (BIC), is planning a year long celebration of 50 years of business development and job creation.

The businesses at BIC today employ more than 300 people in buildings that sprawl across 25 acres in the center of Batavia and were built over 100 years ago.  The companies that have “graduated” from the incubator employ thousands more and occupy properties worth millions of dollars in the region and across the country.  Events, new programs and announcements are being planned to recognize the success of the BIC, its entrepreneurs and the industry it spawned to help people around the world.  It is estimated that there are 5,000 incubators across Asia, North America, Europe and Latin America.  Jiang Zemin, the former President of China, hails business incubation as: “The most important creation of sci-tech industrialization in the 20th century.”

Business incubators are buildings that improve the survival and success of start-up and small businesses by providing rental space, shared equipment, support services and management guidance.  This concept was pioneered by Joseph L. Mancuso in 1959 as a solution to extremely high unemployment and the re-use of a large obsolete industrial building in the small city of Batavia, NY.  The organization responsible for business incubation in China erected a bronze bust of Mr. Mancuso at their incubator in Anshan China acclaiming him as the “founder of the incubator movement”.  January 19, is the late Mr. Mancuso’s birthday.

The Mancuso Business Development Group, led by B. Thomas Mancuso, SIOR, provides leadership to develop and operate incubators or small business centers that help people succeed.  They currently manage almost 3 million square feet of small business focused properties across Upstate New York.

For more information, please call B. Thomas Mancuso at 585.343.280 x 14 or email: tom@mancusogroup.com.

Is Batavia well positioned for an economic renaissance? Reading a post on the rural-themed blog the Daily Yonder this morning, I'm thinking the question might very well be yes.

Big rural towns may have even better luck than large cities when it comes to attracting and keeping manufacturing jobs. (It seems the formula for success includes being a home to higher education situated at the crossroads of major highways.) Big towns usually boast health care facilities located inside the city limits, or at least nearby. Having an industrial park within an economic enterprise zone doesn’t hurt either.

Here's are what I see of Batavia's assets:

• The Harvester/Masse complex, which is ripe for redevelopment.
• Proximity to key transportation routes, though the Thruway's never ending cycle of toll increases is a problem
• Train routes already in place
• The city is well positioned in relation to major water ways, access to the East Coast and the northern Mid-West.
• Plenty of water.
• Plenty of electricity, and the ability to generate more
• Good health care facilities in place
• Good schools (though no major university)
• Good, stable workforce
• Plenty of recreational opportunities for families; interesting, historic locale with easy access to vacation and entertainment spots

The article goes on:

Where big towns fall short is population; they need to draw labor from rather broad areas of the surrounding countryside, perhaps as many as four or five counties large.

Batavia is certainly surrounded by rural counties with additional workers, but the close proximity of Buffalo and Rochester may also be an asset.  The idea of people commuting from those cities to work in Batavia might drive up transportation costs, but Batavia is close enough that it might not be a stretch to imagine people relocating to Genesee County. They would still be close to their friends and families in Rochester or Buffalo, but living in a great community. 

On the other hand, I imagine many people now living in Genesee County and commuting now to Rochester and Buffalo might welcome new job opportunities right in the middle of Batavia.

The biggest negatives facing Batavia, however, remain high taxes and a state government overzealous about regulation and red tape.

Still, with the proper planning and the right effort correctly applied, there's no reason that Batavia can't realize some significant economic growth over the next 10 years.

A new study shows that consumers who shift even just 10 percent of their spending from chain stores to locally owned stores help grow the local economy and creates jobs.

Local Works: Examining the Impact of Local Business on the West Michigan Economy, which was conducted by Civic Economics, found that, if the 600,000 residents of Grand Rapids and surrounding Kent County were to redirect just 10 percent of their total spending from chains to local businesses, it would create nearly $140 million in new economic activity for the region and 1,600 new jobs.

...

In addition to analyzing the economic impact of independent businesses overall, the study also took a close look at four sectors: pharmacies, grocery stores, restaurants, and banks. In each category, the study found that a much larger share of the dollars spent at locally owned businesses stayed in the region, supporting other businesses and jobs.

One of the philosophical underpinnings of what we want to do with The Batavian is to support the community.  We do that by covering more local news, by providing a virtual town square for discussions of local issues, and by doing all we can to support local businesses.  We offer, for example, the ability for local businesses to post their own press releases on the site for free. We also concentrate our ad sales efforts on local businesses.

It's important to remember that the buying decisions you make effect your friends and neighbors.