Business

There are big changes afoot at p.w. minor.

Owners Andrew Young and Pete Zeliff are working to quickly transform and grow the once nearly moribund Batavia-based shoemaker they rescued last year. 

As a part of the transformation,Young and Zeliff came up with a new visionary statement to "dream big, get shit done and know how to have fun." They believe the three goals capture their approach to business and what they need to achieve to be successful. 

Before Young and Zeliff purchased p.w. minor, the company's main goal was to stay open. Now the goals are growth and expansion. 

"We came in with a positive attitude, bold ideas and a huge vision," Young said. "It's a different way of doing things and employees really like it."

To fulfill their vision, Young and Zeliff plan on bringing back production from China and creating more jobs. In April, the company received a $900,000 state-backed aid package to help move jobs from China back to Batavia with the goal of creating at least 100 jobs locally. They have already expanded the local staff by 25 new employees.

Two recent hires bring big-time experience to the rejuvenated company. One is a Batavia native who was eager to return home but continue her career in fashion product development; the other has made the West Coast to East Coast migration because she's excited by the opportunity and fresh energy at the new p.w. minor. Both fit into the shift of culture Young and Zeliff are trying to inoculate into the 148-year-old shoe company.

Kristine McCarthy, a 1999 graduate of Batavia High School, arrived at p.w. minor last month with 12 years experience in accessories with two top name fashion companies in New York City.

McCarthy moved to NYC after graduating from the fashion program at Buffalo State College in 2003; she landed a job with a catalog company. In addition to working for the catalog company, McCarthy has worked in the accessories department for Ann Taylor in material sourcing and Coach in product development. McCarthy and her husband, Brian, who also grew up Batavia, enjoyed living in the city but decided to return to their hometown to raise their son, Jack, and be closer to family.

She began searching for jobs in Batavia last winter and came across all the media coverage about the changes at p.w. minor. She reached out to Zeliff and Young via e-mail and expressed her interest in working for the company. Young, intrigued by her career experience and local background, offered her a position. Hiring a product developer was also a big hole they needed to fill.

During her first month on the job, McCarthy has started working with the purchasing team to source new materials and the design team to execute product samples. She is currently overseeing the production of eight new shoe designs for next Spring. Her goal is to make the products both comfortable and fashionable.

One of the aspects of her job at p.w. minor that is different from her other jobs is the ability to watch the shoe designs come to life at the factory.

"It's different being at the factory," McCarthy said. "This job is a lot more hands-on and I'm gaining more knowledge because of it. I want to learn as much as I can about the manufacturing of a shoe and every detail that goes into it."

She is eager to learn from Young and Zeliff and be a part of the company's growth.

"It's such an exciting thing to be a part of," McCarthy said. "They are both intelligent and there is so much I can learn from them. They are great leaders and have great energy."

Erika Williamson, a pattern maker for a Nike development center in Beaverton, Ore., decided to accept a job at p.w. minor and relocate to Batavia to obtain experience working in a factory. 

"If I wanted to work in a factory for Nike, I would have needed to relocate to China or Sri Lanka," Williamson said. "To me p.w. minor was a great opportunity to not have to relocate overseas."

Williamson never heard of p.w. minor until she randomly received a call from a recruiter a month and a half ago about an opening for a pattern engineer. After learning more about the company and having three phone interviews, she was flown out to Batavia and offered a job on the spot.

She has been designing shoes since she was 12 years old and has 10 years worth of professional experience in fashion. She earned a degree in Arts and Apparel Sciences from the Fashion Institute of Design and Merchandising in Los Angeles. After college, she worked on the fashion segment for KUSI news in San Diego and then moved back to Oregon to do various contract jobs in the apparel industry. 

At Nike she worked on the production floor. She spent two years sewing shoes in production and three years in footwear development. Although she liked designing sports performance shoes at Nike, her passion lies within fashion and developing more high-end style shoes.

Williamson has already started working at p.w. minor drawing and drafting patterns for new shoe designs. One of her goals is to design a comfortable high heel for women who are always on the go. She plans to design a 2- to 3-inch leather heel that is dressy but doesn't leave behind painful blisters after a long day at work.

"I really like working in a factory," Williamson said. "Coming from working on the production floor at Nike, I have found people are more down to earth here. I enjoy working on the equipment and interacting with people. It's a very hands-on job which I love."

Williamson also plans to use her skill in commercialization and full product testing she gained at Nike to get the factory running efficiently after all the production is brought back from China. When she first started working at the development center at Nike, the business unit was small and only three employees worked there. However, in three years the unit grew and became the most sought after group in the company, which led to the creation of 30 jobs. From her experience, she predicts p.w. minor will significantly expand in the next few years.

"With what p.w. minor wants to accomplish and the resources they have, I think within the next three to five years we are going to be seeing a huge growth within the company," Williamson said.

In the near future, Young will be hiring more new employees. 

"We also have some heavy growth plans that will require more hiring," Young said.

The U.S. Census Bureau put out a press release and the national media ate it up: There are now more people living in the United States who are classified as Millennials than there are Baby Boomers.

The Democrat & Chronicle got into the act by pointing out Millennials now outpace Baby Boomers in Monroe County.

There’s been no similar coverage in Erie County, but Buffalo has enjoyed a reputation for the past couple of years as one of the major cities young adults are helping to revitalize.

So where does that leave Genesee County?

Not on par, it seems.

While nationally, there are 83.1 million Millennials, comprising a quarter of the U.S. population, and the number of Baby Boomers has slipped to 75.4 million, the post-war cohort still rules the roost in the Batavia Micropolitan Area.

According to the Census Bureau Web site, there are 15,422 Baby Boomers locally compared to 14,670 Millennials.

Is Genesee County’s lagging Millennial population a trend that's important?

Absolutely, say those with the jobs related to the area’s development and growth.

“You definitely want to have Millennials in a community,” said Felipe Oltramari, the county planning director. “The next generation will create the jobs and opportunities for future generations to be here. As they become players with purchasing power, we want to make sure they are living here and they’re bringing more buying power and creating more jobs and running our community. From an economic development perspective, and social perspective, you want people here from all sorts of generations.”

The window of opportunity to anchor a small town with Millennials may be closing shortly, according to William Fulton, director of the Kinder Institute for Urban Research at Rice University in Houston, Texas.

And it’s a critically important issue for the future of small cities.

“Most people settle down by age 35, and usually don’t move from one metro area to another after that,” Fuller wrote in an article for Governing.com. “And the demographic group behind the Millennials is a lot smaller. Just like Baby Boomers, the preferences of the Millennials will drive our society for two generations. They’re making location decisions based on their idea of quality of life. And they’re going to make all those decisions in the next few years -- by the time they’re 35.”

The good news, according to Fuller, is even if time is short, the goal is obtainable for small cities.

“Even Millennials … want to live near their families and near where they grew up, meaning that if you can create interesting places, they’re likelier to stay,” Fuller wrote. “And you don’t need the endless hip urban fabric of New York or D.C. to compete. You just need a few great neighborhoods for people to live and work in. For most cities, that’s an achievable goal.”

Interesting places, amenities, activities, culture and the opportunity to interact socially, these are the things planners say Batavia needs to retain and attract Millennials.

“I try to drive this point every time I speak,” Oltramari said. “This generation moves first and then finds a job. If you look, there are jobs here and available, but they want to be where their peers are.”

So how do we create an environment where Millennials want to live?

A key word: density.

According to research by Nielsen:

“Sixty-two percent indicate they prefer to live in the type of mixed-use communities found in urban centers, where they can be close to shops, restaurants and offices. They are currently living in these urban areas at a higher rate than any other generation, and 40 percent say they would like to live in an urban area in the future. As a result, for the first time since the 1920s growth in U.S. cities outpaces growth outside of them.”

Tim Tielman, a Buffalo preservationist and development consultant, observed at a Landmark Society talk in 2013 that Batavia is hampering its ability create the kind of economic core that attracts Millennials and like-minded residents with its over-abundance of downtown parking.

"One of the biggest issues every city faces is dead zones," Tielman said. "Batavia has dead zones up and down its streets. Dead zones are devoid of commercial activity. You chain too many dead zones together and you destroy your local community."

When you build your commercial district around the car, the district loses its appeal to pedestrians, and when people walk and interact, commercial activity soars, the feeling of community is pervasive, and social and civic capital grows.

"It isn't cars that make a place a commercial success," Tielman said. "It's a success (based) on how well the human animal can get about certain places. It's what appeals and what stimulates them to walk."

More and more, City Manager Jason Molino said, he’s hearing people talk about walkability. Increasingly, it’s what all communities are after, and something — along with the companion concept bikeability — that Batavia is lacking.

“People want quality-of-life amenities,” Molino said. “People will commute a little bit if you don’t have the jobs in this area if they have the amenities.”

Molino got an immersive experience in the kind of lifestyle amenities that help bring vitality to an urban area. On a vacation day, he and his family visited a couple of the shopping districts in Buffalo and then stopped for dinner at Larkin Square. It was Food Truck Tuesday (video).

Larkin Square, part of what is now known as Larkinville, an area once known as the Larkin District, which is considered Buffalo’s first commercial district, was a rundown industrial warehouse neighborhood. Spurred by a $2 million public-private investment in 2009, the Larkin Building and surrounding cityscape was redeveloped and revitalized. It’s become a hot spot in Buffalo for retail, food and entertainment activity. Tielman was a consultant on the project.

“Two things were obvious to me,” Molino said. “You had people coming to the square right after work, Millennials coming right after work, but you also had the senior population and families — people interested in this kind of quality-of-life amenity with vendors, live music, a pavilion and seating area, and a grass area, and 20 food trucks, all reasonably priced.”

There’s an interesting intersection these days between what Millennials want and Empty-nesters want, Molino noted. They want to get away from the demands of suburban home ownership and the lack of a closely knit community fabric and they seek out walkable neighborhoods with plenty of retail, dining and entertainment options.

That’s what he saw throughout his vacation day with his family in Buffalo.

Steve Hyde’s spent some time recently in Larkinville as well and came away with the same observations.

“It’s a fabulous, vibrant place,” said Hyde, who is the president and CEO of Genesee County Economic Development Center (GCEDC).

Hyde has been spending more time recently working with the City of Batavia to help secure funding and support for the city’s Batavia Opportunity Area, also known at the Brownfield Opportunity Area, or BOA.

The BOA plan is focused specifically on redevelopment of properties that are stalled in the revitalization pipeline in the Downtown area, such as the Della Penna property on Ellicott Street. Moving these projects forward would help advance further Downtown revitalization.

A look around town at all the underused and often dilapidated space might make revitalization feel like a daunting task, and though time is short to attract Millennials, Julie Pacatte, the economic development coordinator for the Batavia Development Corp., isn't feeling any pressure, at least in the sense that revitalization needs to occur before Millennials age out of relocating.

"I think we're fortunate that by the time people reach 35, they tend to move back here with their families," Pacatte said. "They want that smaller-town environment, where they know who's who and they like that feeling of community. We're fortunate it in that way, so no, I don't feel the pressure. I do think we have an opportunity to attract younger people sooner into our community and we're excited about that opportunity. I don't feel the pressure of it, but I certainly want to see something happen in a shorter time frame, in the next five years, in terms of turning some of these sites around."

Since the trend in cities across the country is toward density and mixed use, with greater demand for apartments in downtown areas, Batavia has backed several initiatives to convert underused or unoccupied space in Downtown into apartments, and Pacatte has been right in the middle of it.

She said the new apartments Downtown have certainly proven attractive to Millennials.

Molino agreed.

“All of our marketing studies show there is a demand for this kind of housing in Batavia,” Molino said. “People want to come to our area. It’s a core, central area.”

Part of the plan for Downtown is also creating more office space. Businesses that are founded by Millennials or that hire Millennials need space to relocate and grow, Pacatte said.

"A priority for us is drawing more people Downtown to live, work and shop," Pacatte said. "Millennials are the right target market for our Downtown plan."

While Hyde’s job is to create jobs and stimulate economic growth in Genesee County, Molino’s focus is a little broader. He wants to see Batavia become a better place to live.

He believes Batavia is ideally suited to be a less-expensive alternative to Buffalo and Rochester for Millennials and Empty-nesters, even when they work in the larger neighboring counties.

“With mobility being what it is these days, if you draw a half-hour circle around Rochester and Buffalo, they’re going to intersect in Batavia,” Molino said. “If people at that half-hour distance as a reasonable community, where can they find those amenities? That’s going to be what sells communities to Millennials and Empty-nesters.”

Hyde said what has already been accomplished in Batavia is attracting Millennials. He knows because his daughter, who works in Rochester, and a roommate, who works in Buffalo, rented one of those Downtown apartments.

“They love it,” Hyde said. “Everything is in walking distance. There are restaurants and bars and things for them to do. We need more of that Downtown.”

A place for Millennials to land in Batavia will increase the impact of STAMP (Science, Technology and Advanced Manufacturing Park) if the GCEDC is successful in attracting the kind of high tech, nano tech, advanced materials, solar and bio-manufacturing the park is designed to accommodate. The companies that set up shop in STAMP are going to hire a lot of Millennials who will make good wages and want a lifestyle that is social and active.

Hyde believes Batavia needs to be ready for them, or miss the opportunity to secure future growth.

“We can be a bigger center of economic opportunity,” Hyde said. “We can create a hip, smaller center city with lots of lifestyle choices.”

The BOA is tuned to provide just that kind of boost.

"The opportunity is in front of us," Pacatte said. "We have to make our Downtown more attractive and through these BOA sites, we will really be able to transform the Downtown experience."

Press release: 

Less than a century ago, Batavia’s downtown was bustling with industry, where innovators relocated from New York City to mass produce farm implements to World War II incendiary bombs. These factories employed thousands of workers and took advantage of easy transportation, the railroad and nearby markets. But, the bygone era left a wake of deteriorating buildings, vacant lots and ground contaminants within City limits, a.k.a brownfield sites. Today, City leadership proclaims robust performance-based tax incentives available for the taking to return these underutilized or abandoned locations into vibrant mixed-use places.

In April, the New York Department of State (DOS) officially designated Batavia’s central corridor a Brownfield Opportunity Area (BOA) listing five strategic redevelopment sites. On a parallel track, the City’s local development corporation encouraged Councilmembers to adopt real property tax exemptions and they chased other tax credits to motivate real estate investment. Bold incentives are now in place.

“We could stand by and let these properties continue to decay the neighborhood or do something about it,” City Manager Jason Molino said.

Do something about it, they have. The City has worked to increase its bond rating to A1, turned a multimillion dollar deficit into a balanced budget with capital reserves and secured more than $5,000,000 in grants to improve existing industrial areas, upgrade infrastructure and study the longtime stagnant community.

A Community Improvement Plan was released in 2012 emphasizing an upgrade in housing stock followed by local adoption of real property tax exemptions that offer 12-year tax-bill discounts for converting non-residential buildings into mixed-use spaces. Shortly after, a sizeable $265,000 New York State Department of State BOA grant enabled local activists to grease the skids even further.

“It took four years but, the grant allowed us to hire a consulting team and organize a local Steering Committee to define market opportunities, investigate the ground and write a plan to move our central business corridor into the 21st century,” Molino said. “We know our small city can offer the conveniences and experiences of a larger city, but at an affordable price.”

The challenge was to determine if the real estate community would invest in the area. Now, the market reports and community confidence suggest they will.

The expert-led and community-inspired BOA plan was formally adopted by City Council in June 2014 and handed off to the City’s local development corporation to implement. The Batavia Development Corporation (BDC) immediately retained Harris Beach PLLC, a known deal-maker in the State to guide the efforts.

“It’s funny how the BOA designation appears like a badge of honor,” said Julie Pacatte, BDC coordinator. "It reads like a proclamation from DOS. In truth, it’s bittersweet. Sad we have these blighted areas but happy it sanctions bonus tax credits rewarding investment.”

Gaining access to that tax credit program is a whole different process, according to Pacatte.

The BDC Board authorized cash reserves to extend environmental investigation and to hire Harris Beach and LaBella Associates to prepare the New York State Department of Environmental Conservation Brownfield Cleanup Program (BCP) application. DEC serves as the gatekeeper to request access to the State tax credit program.

“It is a 643-page document enumerating data with compelling narrative to justify access to the program,” Pacatte said. “The BDC Board is clearly determined to advance the BOA plan.”

Unfortunately, their ambitious goal to go to market last year was stalled by expanded data collection, typical land assembly delays and uncertainty with the BCP as it under-went reform during the State’s budget process. Nevertheless, advocates still believe Batavia remains milestones ahead of other communities.

“The BDC’s approach is aggressive and recommended,” said Bob Murray, partner, Harris Beach PLLC. “To enter the BCP prior to marketing the property assures a preferred developer significant refundable NYS tax credits potentially worth up to 64 percent of total costs incurred for remediation, site preparation and new capital expended on that parcel. Not many communities are as proactive and committed.”

The BDC has released its first request for proposals addressing “Ellicott Station” a four-acre downtown redevelopment area that has confirmed acceptance to the BCP. The proposals are due next month, by Aug. 12.

“It was a no-brainer to spend the time and money necessary to line up these credits,” said Ray Chaya, BDC Board president. “No longer do we need to stand by to wait for investors, we are bringing the ROI to them.” 

For more information, visit the BDC Web site.

Press release:

The ECMC Foundation provided grants totaling $219,424 to area organizations that help advance the quality of workforce and educational programs and services in Genesee County and the GLOW region (Genesee, Livingston, Orleans and Wyoming counties). ECMC Foundation is a nonprofit organization based in Los Angeles with a mission to provide investments aimed at facilitating improvements that affect educational outcomes, especially among underserved populations.

The recipients include Genesee Valley Educational Partnership, Western New York Tech Academy, Genesee Community College (GCC) and the Genesee Gateway Local Development Corporation (GGLDC). The Foundation pledged dollars to assist these organizations to help underprivileged residents in the GLOW region in obtaining better access to workforce development training and college programming.

“These grants will not only improve the quality of our region’s many educational programs and services, but also provide both high school students and adults with the critical tools and training they need to be successful in the workforce,” said  Tom Felton, president and chairman of the GGLDC. “We look forward to working with the ECMC Foundation in disbursing the funding to these very worthy organizations.”

The Genesee Valley Educational Partnership, which received $100,000 of the grant, will use the funds to improve training programs for high school and adult students pursuing careers in-demand manufacturing fields, as well as purchase new machinery for its training facilities. The Genesee Valley Educational Partnership is one of 38 cooperative school districts in New York State that provides shared educational programs and services to its component school districts, including the Batavia City School District.

“The Genesee Valley Educational Partnership is honored to be included as a recipient of the ECMC Foundation grant,” said Kevin MacDonald, district superintendent of the Genesee Valley Educational Partnership. “This grant aims to provide adult and high school students with new opportunities to gain employable skills.

"The scope of this grant is vast. This program will be open to high school students who attend any of the 22 component school districts served by the Partnership, as well as any student enrolled in the Partnership Adult Education Program. Our goal is to help highly skilled workers meet the emerging needs of industry within our region.”

Chuck DiPasquale, director of Programs, Genesee Valley Educational Partnership, said: “This grant will be utilized to make improvements to the machining and welding programs at both Genesee Valley Educational Partnership’s career and technical education centers. High school and adult students will have the opportunity to be trained on the latest and most up-to-date equipment and technology. Upon completion of the program, students will be highly qualified and ready to meet industry standards.

Western New York Tech Academy, an early college high school supporting grades 9-14, was awarded $61,710. The Academy will use the funds to enhance training programs for its at-risk students through the purchase of new workplace equipment and furniture for its classrooms.

“It’s our mission to create learning environments that support a cultural shift away from the traditional classroom and toward today’s workplace,” said Tom Schulte, principal, Western New York Tech Academy. “This can only happen if the physical space supports it, and it’s through the generosity of the ECMC Foundation that will allow us make this shift a reality.”

Genesee Community College (GCC), the recipient of a $44,390 grant, will purchase new equipment to support lab and "hands-on" learning activities in its food-processing educational programs.

"GCC's newest degree, Food Processing Technology AAS, gives residents in our rural community an opportunity to secure well-paying jobs -- such as production and quality control supervisors and safety and storage technicians," said Rafael Alicea-Maldonado, Ph.D., GCC's dean of Math, Science and Career Education.

"These are excellent careers in the burgeoning food-tech industry which are also 100-percent made in America. Funds from the ECMC Foundation will help us purchase the state-of-the-art equipment necessary for this new program including refractometers, salt, moisture and lacticheck analyzers and ebulliometers."

Lastly, the GGLDC will receive $13,324 to facilitate the coordination of the various activities of the grant recipients, including overseeing reporting requirements as stipulated in the agreement with the ECMC Foundation to monitor and track progress of each initiative.

The effort to bring back malting to Upstate New York is a multi-year process.

Working with Cornell University, Ted and Patty Hawley, owners of New York Craft Malt on Bank Street Road, Batavia, are in their third year of running trials of malting grain in Genesee County Farm fields.

There's a plot on Hawley-owned farmland off Bank Street Road and another on Porter Farms, plus the Hawleys have some grain growing on other local farms.

The trial involves 34 varieties of barley, plus wheat and oats.

"We've got to look at all aspects of it, and it's a hard go," Hawley said. "Cornell won't really give their recommendation for four or five years."

The challenges in Western New York have to do primarily with weather -- the year-to-year variances, but more importantly the overall amount of moisture in ground and air.

Malting grains are highly susceptible to fungal diseases, so what researchers want to find are those varieties that grow well in this climate and stay health without sprouting two quickly (once the grain head sprouts, it can no longer be malted).

"Our region is very finicky," Hawley said.

The process involves two key sets of analyses.

First, researchers want to determine how well a variety grows locally, or its agronomics for a farmer. It's important to determine the quality and quantity of the protein, how it germinates and its yield (more yield, more profit per acre).

Second, the grain needs to be malted. The test isn't about taste or any subjective measurement. Researchers are looking at protein, enzymes and how well it malts.

Brewers are looking for good, locally grown grains because the farm brewery law requires locally produced, craft beers to contain a certain percentage of local agriculture product.

But Hawley said local brewers and growers are also looking to produce an interest among consumers to seek out totally local beers. They are working together on a marketing plan that would provide bars with a "Local" tap that would only be attached to kegs of locally brewed beer that uses only locally grown ingredients.

"I think once the consumer wants it, brewers are going to have to give it to them and then I think it's going to grow," Hawley said.

A two-row variety and a six-row variety.

Dealing just with hard numbers -- setting aside speculation on hoped-for new revenue and "the multiplier effect" of jobs created -- the tax abatement plan approved Thursday by the Genesee County Economic Development Center Board for a new hotel at Batavia Downs should be profitable for taxpayers, according to data obtained by The Batavian from a GCEDC staffer.

The abatements will save developers about 11.5 percent on their $5.49 million investment, and the new taxes the project generates will be about a 100-percent return to taxpayers, if you accept the notion that the project doesn't get built at all without the tax incentives. If not, it's at least 42-percent return.

By law, the developer must certify that the project requires a tax break to be feasible, according to Rachael J. Tabelski, marketing and communications director. That is a requirement for all projects considered by the GCEDC.

"We have to trust the applicant that when they say this project won't be a viable project without the tax incentives," Tabelski said.

ADK Hospitality, the hotel's developer, will save $638,000 in taxes over the next 10 years, but it won't be getting off totally free. The hotel's owners, over the next 10 years, will pay $1.1 million in various taxes.

Tabelski was quick to point out that the $638,000 in tax breaks is not money taken from taxpayers. It's just money that isn't paid to the government; money that doesn't exist if the project isn't built. Thus, the $1.1 million in taxes ADK will pay over the next decade is all new revenue for schools, the county and the state (but not the Town of Batavia, which doesn't have its own tax on property).

That figure doesn't include sales tax generated by the hotel, or any anticipated increase in sales tax generated by the hoped-for increase in business at Batavia Downs. It also doesn't include employment taxes generated by the anticipated $600,000 in payroll for 25 full-time equivalent new hires at the hotel. 

The developers told the GCEDC Board that the project would generate a total of $2.8 million in tax revenue between now and 2025, but there isn't a breakdown available on what categories of taxes comprise that total. It likely covers fire district, property, bed tax, sales tax and payroll tax.

The $1.1 million in hard numbers we have includes:

• $56,000 paid to the Town of Batavia Fire District;
• $550,000 paid in county bed taxes;
• $500,000 paid in property taxes over the life of the PILOT.

A PILOT is a tax break given to developers of projects that industrial development agencies, such as GCEDC, believe will create or retain jobs. It is a reduction in taxes on the increase in assessed value of a property.

Let's say a property is valued at $100,000. A business ads a new wing to its building and increases the assessed value to $150,000. The business continues to pay all property taxes on the initial $100,000 in assessed value, but gets a reduction in taxes on that additional $50,000. PILOT agreements vary, but typically, there would be no taxes due the first two years of the increase, and then taxes would be incrementally increased every two years until the 10th year, when the property owner is paying the full tax bill on the increase in assessed value.

In the case of the hotel property, the developers are buying land from Western OTB, which is currently tax-exempt and has no assessed value. It will be assessed next year, and its assessed value will go from zero to whatever that assessed value is, and the PILOT will be calculated based on that increase, unless the project is not yet completed, in which case there will be only a partial assessment with a full assessment to come during the next annual assessment period after the project's completion.

The PILOT on this project is worth $300,000. The remaining abatements are for the mortgage tax on the purchase and on the sales taxes due on material purchased during construction.

As for the multiplier effect, that's a controversial notion to some, but the idea is that if you create a new job and pay that person money, they will spend some amount of that money locally, and the churn of that money will help pay other people's wages, lifting everyone's boats. That $600,000 in new payroll could be worth millions in economic growth locally.

These figures also don't include wages paid to construction workers and purchases made from local vendors -- if any -- during construction.

Press release:

WBTA Radio will temporarily suspend AM and FM transmissions on Friday morning, June 26 in order to repair antenna damage caused by severe thunderstorms earlier.

The station expects the signals will be turned off at about 10:15 a.m. as engineers reposition the station's FM antenna that was rotated 90-degrees due to strong winds.

The AM signal on 1490 was unaffected by the storm but in order for someone to safely climb the 200-foot tower on Creek Road to reach the FM antenna both signals must be shut down, explained WBTA President Dan Fischer.

“We hope the outage will last no more than 90 minutes but we will not know the extent of damage until we can inspect it close up,” Fischer said.

While the stations are off the air, programming will continue to be heard online and via mobile devices at WBTAi.com.

The number of people with jobs in Genesee County has improved, according to statistics released today by the state Department of Labor.

The sunnier employment picture for local residents comes a couple of weeks after a labor department report revealed that the county fell flat on in-county job growth in May, but the same jobs report showed an increase in the workforce in Monroe and Erie counties.

There are 300 more local residents with jobs now than there were a year ago, according to today's report. The total has climbed from 28,900 in May 2014 to 29,200 this May.

That puts the Genesee County unemployment rate at 4.7 percent, compared to 5.0 in May 2014.

The 4.7-percent rate is low, but not the lowest figure of the past 12 months. The rate was 4.6 in October. In the past 12 months it's been as high as 6.8 percent, which was the figure in January.

The unemployment rate in Wyoming County is 5.2 percent, down form 5.8 percent a year ago. In Orleans it's dropped from 7.0 to 6.2 and in Livingston, from 5.7 to 5.1.

The state rate is 5.3 percent and the national rate is 5.3.

An attorney representing the Clarion Hotel and members of the community voiced concerns regarding the application submitted by ADK Hospitality, LLC, to Genesee County Economic Development Center for incentives to build a hotel at Batavia Downs.

A public hearing was held Monday night by the GCEDC to gain input from the community on the application they received from ADK, a private developer seeking to build a hotel at Batavia Downs, requesting approximately $630,000 in incentives.

Vivek Thiagarajan, attorney representing Clarion owner Chat Patel, argued that when his client looked into applying for GCEDC incentives to build the Palm Island Indoor Waterpark in 2012 he was told the project would be denied funding because it was not considered a tourist destination. Thiagarajan argued that ADK's hotel is not a tourist destination and Batavia Downs should not receive tax incentives either. 

"There is no tourist destination about the hotel itself," Thiagarajan said. "Maybe the name makes it look like it's affiliated with Batavia Downs but the hotel is merely just like any other hotel. As a result, the public shouldn't be forced to fund something that only benefits the private owners of that hotel."

Thiagarajan also argued that the purchase price of $600,000 is less than the $630,000 in incentives the project would receive from the GCEDC.

In addition to Thiagarajan's opposition, John Sackett, a past county legislator, questioned whether the hotel would create full-time jobs and believed the hotel should be built without incentives.

A representative from the Northeast Regional Council of Carpenters expressed concern over whether Batavia Downs and ADK would use union construction workers to build the hotel. The union agreed it would support the hotel project if union construction workers were used.

A variety of local businesses wrote letters in support of the proposal. The businesses included Sport of Kings Restaurant, Harness Horse Breeders of New York State, Sloat Tire Shop, Genesee Feeds, Nothnagle Realtors, Genesee County Chamber of Commerce, WNY Harness Horsemen's Association and U.S. Foods. The businesses stated that Batavia Downs is a primary asset for attracting tourism and the addition of the hotel would bring more people and business to the community.

Anthony Baynes, managing member of ADK, provided details on the hotel project and the economic impact it would have on Genesee County. In the presentation, Baynes stated the $5.5-million hotel will be a four-story structure with 84 rooms. Itl will also be connected to Batavia Downs Gaming and complement the design elements of the new gaming entrance. There will be no restaurant or bar in the hotel.

"The hotel will positively impact Batavia Downs and local tourism on a permanent basis," Baynes said. "It will generate incremental gaming, banquet, food and beverage revenue at Batavia Downs, which will result in increases in tax collection, jobs preserved and additional jobs created."

According to Michael Nolan, vice president of Western Regional Off-Track Betting, the corporation that owns Batavia Downs, the hotel will help the gaming industry expand and allow them to compete with other casinos that are building hotels.

The hotel will result in the creation of 23 jobs. There also will be more job growth due to the number of wedding and conventions Batavia Downs will host because of the hotel.

"We think our banquet facility is going to multiple 10 times due to the hotel," Nolan said. "It's well within reason that there will be 50 jobs coming with the addition of the hotel."

According to statistics provided by Hotel & Leisure Advisors, a national hospitality consultant firm, the total impact of the new gaming revenue, new food and beverage sale and increased banquet business will be $2.6 million for the first year of operation. In the first 10 years of operation, the impact will be $31 million.

The GCEDC Board of Directors is having a special public meeting to consider a final resolution for the project. The meeting will be held at 11:15 a.m. on Thursday at the Innovation Zone Conference Room at MedTech Centre.

Year-over-year job growth for Genesee County was stagnant in May, according to data released by the Department of Labor.

In May of 2014 and 2015, there were 23,900 jobs locally, according to the department's count.

The unchanged non-farm jobs number comes in a month that New York State as a whole added more than 142,000 jobs, jumping from 9.133 million jobs to 9.276 million jobs.

The Rochester area added 7,100 jobs and the Buffalo region added 13,000.

Wyoming County was also flat in jobs growth for May, holding steady at 13,500 jobs. The data for Livingston and Orleans counties are included in the Monroe County data.

The County Legislature has voted to sell the Genesee County Nursing Home to Premier Healthcare Management, LLC, for $15.2 million at the Ways and Means Committee Meeting tonight.

The final details of the contract still have to be finished and signed by the legislature. As an alternative until the contract is finalized, the legislature has issued a letter of intent for the sale and transfer of Genesee County Skilled Nursing Facility and Genesee County Adult Home.

The letter of intent is needed so Premier can meet the Department of Health's application deadline for licenses and certificates of need. The entire process can take anywhere from six to nine months.

Premier owns several nursing home facilities and is a well known for-profit healthcare corporation in New York.

"There will be no reduction in the quality of care at our nursing home, which is our biggest concern,” Legislature Chairman Ray Cianfrini said. “The fact that they can do it at a profit is something I give them credit for. They have a different set of parameters that they work within that allows them to do that. This is not the only nursing home they own so they have the economy of scale they can use to make profits. That doesn't bother me at all."

Members of the legislature were impressed after touring their facilities and talking with residents.

Legislator Marianne Clattenburg said she believes Premier can provide advancements to the nursing home that the county couldn’t do.

“What struck me was their willingness to make investments,” Clattenburg said. “We saw one facility that had a multimillion-dollar dialysis unit installed after they had taken over the building.”

Finding a qualified buyer for the nursing home has been an extensive process.

“It was a long thorough process,” said Legislator Frank Ferrando Jr.. “Right from the beginning nothing happened rashly or quickly. Places were visited and questions were asked. We interviewed eight from a list of 14 that were original applicants. I’m very confident this is going to be a real plus for our community.”

When the contract is finalized, Premier plans to seek community input and will hold community meetings and forums for families and employees.

According to county officials, after debts are paid the county hopes to net $6.7 million from the sale.

 

(Shaina Czudak and Jim DeLooze)

58 on Main, the art gallery and coffee shop in Le Roy, has been providing locals with art, coffee and a friendly place to chat for a year now.

In celebration of its one-year anniversary, the shop handed out free birthday cake and gave customers a chance to win a photo booth party.

Jim DeLooze, local artist and photographer, and Sean Valdes, co-owner of D & R Depot, run the shop together.

The combination of art and coffee has been a hit in the community. Customers can take painting, pottery and photography classes as well as enjoy a coffee and pastry. Paint nights and pottery painting classes are offered on Friday nights. Photography classes for beginners are offered on Saturday mornings.

The shop also has room for events like small parties. The parties come with the option of catering from D & R Depot and a photo booth.

"It's a real accomplishment for a small startup business to survive a year," DeLooze said. "The art gallery and coffee shop really complement one another and I don't think I could have ran the gallery as a stand alone business."

In the future, the shop hopes to offer pottery birthday parties for children and welcomes any local artists who would like to teach a class to contact them.

“We live in a world of gods and monsters,” Mitchell Lawerence, played by Alexander native, Tim Schiefer, said. “We’re simply here to tell the story.”

What story is Schiefer trying to tell? The story of “Godzilla: Heritage.” 

Schiefer and Director Greg Graves have been working on the film for six years. It’s all coming to fruition. However, to make the movie the way they have always pictured it, the crew needs help raising money.

Thirty-Six days remain for the project’s crowd-funded Kickstarter. They have so far reached $10,463 of the $40,000 goal. If the project does not get fully funded, the production will not receive any of the money raised.

This is the second kickstarter campaign following a successful lead. The first time, the crew asked for $10,000 and received almost $20,000. The money that was raised went toward nicer cameras, travel, filming the teaser and the creation of the monster suits.

The suits are being made by season six winner of the SyFy network show "Faceoff," Rashaad Santiago. Santiago moved to Batavia to help with the movie. Godzilla has been a fascination of his since he was a child.

“For me, he was an escape from reality growing up,” Santiago said. “My mom recorded seven or eight hours of a Godzilla marathon when I was younger. I would watch it on loop until the film popped.”

Schiefer and Graves brought several other professionals onto the project. They include Chris Barbis, Kyle Gilmore, Tyler Graves, Billy Rupp and Christopher Bloomer. Bloomer has done visual effects for “Zombieland” and “Dragonball: Evolution.”

The cast and crew need the money to finish making the monster costumes, pay actors, promote the film, for anticipated filming permits and other expenses.

“Eighty to 90 percent of the movie will be filmed in Batavia,” Schiefer said.

Ken Mistler, owner of several local businesses, including City Slickers, has donated the spaces that “Godzilla: Heritage” will be filmed in. Additionally, the movie may need to be filmed outside on a street and permits would be necessary.

The character of Godzilla is not in the public domain. In fact, he’s heavily trademarked. It is for this reason that Scheifer and his team are creating the film as a fan film. No money will be made off of this production. They are making the film strictly for the passion they have for Godzilla.

The weather is once again playing havoc with the potential onion crop in the mucklands.

Early in the season, it was too dry and too hot. Now, saturated ground is stressing some tender plants.

Perhaps as much as 20 percent of the crop won't make it to harvest.

Paul Mortellaro said the situation is hardly a disaster at this point.

"It would be nice to get some normal weather," Mortellaro said, "rather than ' it's too hot, it's too cold, it's too dry, it's too wet.' "

Heather Volpe and her granddaughter Myla, 18 months, visit with a calf during the open house for State Street Hospital this morning. The open house, which includes visits with animals, a tour of the facility and demonstrations of medical equipment, door prizes and ice cream, continues until 3 p.m.

Gary Zimmerman with Clacker.

The County Legislature is poised to accept what County Manager Jay Gsell characterized as the "highest and best offer" from a qualified buyer on the Genesee County Nursing Home.

The county received eight purchase proposals, Gsell said, and the recommended buyer is not only well qualified but also submitted the highest bid.

The details of the purchase agreement are not yet public and more details should be available when the Legislature meets in a special Committee of the Whole Meeting following the 4:30 p.m. Ways and Means Committee meeting Wednesday, in the Old Courthouse.

For years, county officials have maintained the nursing home is a multimillion-dollar drain on the county's budget and that state officials have been maneuvering counties toward the sale of such facilities by strangling state aid. Financial disclosures provided to potential buyers show the nursing home's losses have been piling up, with losses of $2.9 million in 2011, $3.7 in 2012 and $4.3 million in 2013.

A non-government agency (whether a not-for-profit group or for-profit company) will have greater flexibility in generating revenue than the highly regulated government-owned facility, plus have greater leeway in reducing expenses, and it won't be facing a squeeze on funding from the State of New York, according to county officials.

The anticipated vote by the Legislature is just the first step in a long process that could last up to nine months to complete the sale.

While Gsell said legislators have been doing their due diligence to ensure the anticipated buyer is qualified, the state has its own investigative process before it will OK transferring what's called a "certificate of need" to the new owner. The nursing home has two such certificates.

"At this point, with the deadlines the state has on financing nursing homes, especially adult operations like we have, the Legislature would like to start that process now," Gsell said. "The state conducts what it calls a character and compliance review and that could take six to nine months. That's what other counties have been through, including our neighbor to the north."

While Gsell would not at this time disclose the name of the buyer, citing purchase agreement restrictions, he said it is a company based in New York. That's one of the details that could be made public Wednesday.

For previous nursing home coverage, click here.

A proposed expansion of the O-AT-KA Milk Products plant at Cedar Street and Ellicott Street Road, Batavia, received a vote of approval from the County Planning Board on Thursday night.

O-AT-KA is contemplating adding a 194,543-square-foot building and a 35,279-square-foot building that will serve as warehouse space and a distribution center.

A spokesman for O-AT-KA repeated several times to reporters last night that the expansion remains a proposal at this time. There's no information available on how O-AT-KA's business might be expanding as a result of the new space.

The location of the new structures would be on the east side of the plant with vehicle access off of Ellicott Street Road.

The board recommended approval of a site plan review with recommended modifications for a stormwater pollution-prevention plan prior to final approval by the city.

Also on Thursday:

The board recommended approval of a site plan review for a 1,620-square-foot addition to the Pavilion Public Library. The expansion, which will include a new children's wing, is funded in part by a $200,000 donation from Edgar Mary Louis Hollwedel. Deborah Davis said the library is also seeking a state grant. The size of that grant could exceed $200,000.

The board recommended disapproval of a zoning map change on South Lake Road in Pavilion. Superior Plus Energy Services was seeking the change to develop a bulk storage and truck distribution center for bulk propane. The 32-acre site is currently zoned agriculture-residential and Superior Plus Energy is seeking a change to industrial. Staff's recommendation was for disapproval because the change would be inconsistent with the town's comprehensive plan and the Future Land Use Map, which plans for agriculture use or residential with minimum lot sizes of five acres.

A planned Dollar General store in Pavilion received recommended approval for its sign. The sign design presented previously by Moeller Sign Co. wasn't approved because it would have meant a sign larger than currently allowed in the zoning code. The new design complies with the code.

It's shred day at Brighton Securities. Anybody with documents to shred can bring them to their tent set up in the parking lot on East Main Street, Batavia, next to the Chamber of Commerce. They will be there until 3 p.m. and even serve you cookies and a beverage.

Pictured are Brittany Weeks, Christina Gregory, and George Arnold from Brighton Securities, and Mark Bonin, of Shred-Text.