Business

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.

Press release:

The Board of Directors of the Genesee County Economic Development Center (GCEDC) accepted applications for assistance from Manning Squires Henning Co., Inc., and ADK Hospitality, LLC, at its June 4, 2015 board of directors meeting.

Manning Squires Hennig Co., Inc., is proposing to expand its corporate offices and maintenance facilities in the Town of Batavia by up to 5,000 square feet. The project also would include renovations of the company’s existing shop and office space.

Founded in 1958, Manning Squires Hennig Co., Inc., is a general contractor that has worked on various high profile projects over the years including work at the Rochester School of the Arts, Kodak Park, Buffalo Bills Fieldhouse, Monroe Community College, and Bausch & Lomb Rundell Library among many others.

Manning Squires Hennig Co., Inc., is seeking sales tax, mortgage tax and property tax exemptions totaling approximately $170,556 in estimated incentives. The capital investment would be approximately $1.3 million and would retain 88 jobs and create five new jobs.

ADK Hospitality, LLC, is proposing to build an 82-room hotel connected to Batavia Down’s gaming facility. ADK Hospitality, LLC, is seeking an estimated $638,193 in sales tax, mortgage tax and property tax exemptions. The planned capital investment is approximately $5.49 million.

(Laurie Oltramari)

Laurie Oltramari, new Batavia Business Improvement District director, has a passion for urban design and architecture.

Oltramari is currently the assistant BID director and has worked with the organization for three and a half years. She will replace Don Burkel, director of the BID, who is retiring, and take over as the new director at the end of July. 

She was offered the director position after submitting her application and being reviewed by the BID hiring committee. The committee was formed to give more than 50 applicants a fair shot at the job. The committee included members of the BID board and community members.

As the new director, one task she would like to accomplish is to reach out to the public for their input and let Burkel's contacts know her door is always open. According to Oltramari, you need community involvement for a city to be successful. 

"I want to continue on the legacy that Don has left and what's been done and what has worked," Oltramari said. "Just like when you do a business you need to reevaluate every year so that's what I plan to do."

Another component she thinks is important for Batavia is the BID's ability to manage and balance event planning, help business development, and foster "placemaking," which is a quiet movement that is inspiring people to collectively reimagine and reinvent public spaces as the heart of every community. Placemaking is a multifaceted approach to the planning, design and management of public spaces that capitalizes on a local community's assets, inspiration, and potential, with the intention of creating public spaces that promote people's health, happiness, and well being.

"You have to create a place where people want to be and you can't just flap down some papers and put on your facade and your good to go," OItramari said. "It comes down to details and that is where her urban design background comes into play."

Oltramari was born in Hornell and grew up in Belmont. Her father owned an excavating and construction company, which is the reason she has always loved architecture and design. She received her undergraduate degree from SUNY Geneseo in 1999 and master's degree in Architecture and Urban Design in 2003. 

Oltramari has lived in Batavia for nine years with her husband, Felipe Oltramari, director of the Genesee County Planning Department, and their two daughters. Batavia is very different from the small town that she grew up in.

"I like Batavia because it's very family friendly and safe," Oltramari said. "It has all the amenities of a big city without being a big city. There is a real level of comfort here and it's big enough that you don't run into everybody you know but when you do it's really special."

For the future of small business in Batavia, she thinks businesses have to bring out the community in people like they used to. Face-to-face interactions and personal customer service gives small businesses an advantage against Internet businesses.

"I think the biggest competition is the Internet and it's back to TV again," Oltramari said. "People are doing the binge watching of Netflix so they will stay in and have food at home instead of going to a restaurant like people usually do for entertainment."

Upcoming BID events include the Jackson Square Concert Series, Downtown Batavia Public Market and the Centennial Arts Fest.

The Smokin' Eagle BBQ & Brew in Le Roy kicked off a summer series Battle of the Bands on Wednesday night.

For each of the next 10 weeks, 10 bands will compete to move on to the next round. One band each Wednesday is playing from at least 8 to 9 p.m. (the period of judging, the bands may play longer).

The series kicked off with a performance by JP Shaggy, from Syracuse.

There will also be bands in the competition from the local area as well as Buffalo and Rochester, said Jimmy B, from Jimmy B entertainment, who is organizing the event with Smokin' Eagle co-owner Jon Marcello.

There is a panel of five judges. They will judge the bands on stage presentation, time management, sound quality, band synchronization, band enthusiasm, and attitude and audience response.

The top six bands move onto the semi-finals. Round 2 will be three weeks of two bands each week, top seed vs. bottom seed. 

The finalists will compete Sept. 19, which is a Saturday, from 2 to 10 p.m. That event will be a fundraiser for a charity yet to be selected. There will be other entertainment along with raffles and drawings.

JP Shaggy is Jason Krueger.  To find out more about him, visit his Facebook page.

Press release:

The Genesee County Dairy Princess honored the first baby born in Genesee County during the month of June 2015 as the Dairy Baby. Marleigh Grace Wright, a baby girl, was born to Tammy and Jeffery Wright, of Warsaw, on Monday, June 1st at 3:51 a.m. at United Memorial Medical Center. She weighed 5 pounds, 5 ounces and measured 19 inches long. She was delivered by Dr. Richard Edwards. Marleigh joins an older brother, Mason, 14, at home.

June is National Dairy Month which honors traditions and celebrates the contributions of the dairy industry by promoting nutrient-rich dairy foods.

The Genesee County Dairy Princess, Pavilion sophomore,Emily Mikel, and her mother, Sue Mikel, presented the Wright family with a basket of dairy products including yogurts, product coupons, cheeses, and a number of other infant items.