Business

NOTE: This is an updated version of the story that corrects the implication from the Albany Times-Union story that the Batavia Kmart was involved, and the error in the TU story that warning letters were sent to the stores.

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Six grocery stores in New York -- including one in Batavia -- were notified by the state that some fish products the were selling were apparently overpriced.

The allegation is that the stores were selling seafood packed in ice, and the ice was being weighed so that consumers were paying not just for filets and shrimp, but ice as well.

The Batavia Tops was one of the six stores asked to remove products from its selves and either re-label the packaging or return it to the distributor, a company out of New Jersey, according to Jessica Ziehm, spokeswoman for the state Department of Agriculture and Markets.

Tops reportedly sold fish fillets packed in ice that was counted as part of the weight.

Press release available here.

To commemorate the last steel beam being put in place on UMMC's $19.5 million expansion, the hospital held a "topping off" ceremony this afternoon.

A worker placed a flag -- for national pride -- and an evergreen tree -- for growth -- atop the beam.

The beam was painted white and signed by employees, administrators and board members.

When completed, the expansion will add 44,000 square feet to the front of the hospital on the North Street side. Construction is expected to be completed in December.

After 15 years of working for other people in the home-improvement business -- both as a hired hand and in sales -- Tim Stoddard began to get the itch to do it himself.

"My wife Lisa was a big instigator of it," Stoddard said. "She kept telling me I could do it.”

So he enrolled in free classes from the Small Business Administration at Geneseo College and began planning what would become American Home Remodeling.

Ten years ago, Tim and Lisa launched their company with a vision for a firm that would be known for its quality and its personal attention to customer care.

"We didn't need to be a big fish," Stoddard said. "We didn't need to be the biggest company out there. We wanted to be a company known for honesty, doing the right thing and having the right people in place."

In part, that's how the name of the company came to be. American Home Remodeling sounded to Tim like a name that would stand for quality. It also helped that the company name would begin with "A" so it would be at the top of Yellow Page listings.

The company name also led to one of American Home Remodeling's signature marketing features -- its fleet of trucks painted in patriotic red, white and blue.

Lisa's cousin paints murals professionally and one day Tim asked her, "Can you make my truck look like it ran through an American flag?" She said she would give it a try.

The company now has four flag-painted trucks, each one a little different, he said.

"I went to the bank to make a deposit one day and a lady came up to me and said, 'Are you the fellow with the flag truck?'" Stoddard recalled. He said he was. "She said, 'I looked at the truck and I looked away and then I looked at it again and I thought, it's not offensive at all.'"

Stoddard said that's when he knew the trucks were helping project an image of a reputable, local company.

American Home Remodeling's bread-and-butter business, according to Stoddard, is roofing and siding, but he's also proud of his carpentry department, which allows him to take interior and exterior building jobs.

The siding business isn't about taking any job and putting the least expensive siding on a house, in keeping with Stoddard's goal of being a reputable mid-size business.

Stoddard said his company uses top-of-the-line materials and tries to maintain the character of the house. For example, the slats of the siding will match the width of the original wood clapboards, and if the house had gingerbread shingles, that decorative feature will be retained.

"I don’t do many rental homes because we’re too high for rentals," Stoddard said. "They want to go with the cheapest product they can in most cases. We don’t really want to have jobs out there with our name on it that look like that."

The Stoddards clearly have a love for Batavia's older homes. They live in -- and are restoring -- one of the Homelius-designed houses on Ellicott Avenue -- and in 2004 they purchased the Doty Mansion at the corner of Jackson Street and Highland Park.

In 2006, they completed the major indoor renovation of four apartments inside what was once one of Batavia's grandest residences (maybe only the long-ago destroyed Richmond Mansion could beat it).

The Stoddard's bought the mansion with only $5,000 down, with the previous owner carrying the mortgage and a bank financing more than $50,000 in restoration work.

"Once we went into the Doty Mansion, it was just a mess," Stoddard said. "It was just HUD. There was no heat into two of the apartments for two years. They had space heaters. There was raw sewage coming from the upper apartment to the lower one.

"We started demo’ing and you could see past all the dirt and debris that it was really a nice house at one time," Stoddard added.

At first, buying the Doty Mansion was just an investment. For the price, the Stoddard's figured they could fix it up and rent out the apartments to reliable tenants and turn a profit, but the restoration work had unexpected benefits for American Home Remodeling.

Through the work, the Stoddards tapped into a regional network of specialists in woodworking, masonry, stained glass and other specialties.

"Now, I’m not really too unsure of myself or afraid to try stuff," Stoddard said. "There’s so many people out there whom I now know who can do special things. It was kind of a blindfolded thing. I didn’t realize how beneficial it would be by working on that mansion."

There isn't enough restoration work in Batavia, Stoddard said, to make that a focus of American Home Remodeling, but he thinks that if more people knew the option was there -- even though it can be expensive work -- they might take that approach with their older homes.

"Somebody might have molding that is really ornate plaster, but bits and pieces are broken," Stoddard said. "If they knew we could come in and save that and restore it, then I think they would entertain that idea. I think a lot of people don’t realize it can be restored and fixed so they turn around and get rid of it."

But whether through renovations, siding or roofing, American Home Remodeling has been growing, Stoddard said. He projects this year the company will gross $1 million for the first time.

During peak building season, Stoddard said he employs as many as 18 people, and that's as big as he wants to get.

"We had 22 one summer, our fourth year in business, and I was just pulling my hair out. It got to be a little too much to deal with," Stoddard said.

Photo: Tim Stoddard, right, talking with the owner of a home his company re-sided for the previous owner.

Though a retired physician living in Florida I am a native Batavian with more than a passing interest in the discussion of the taxation issue involving the L.B. Grand restaurant in LeRoy.

After giving considerable thought and engaging in review of some New York State journals and available news reports I made the effort to read  some of the formidably redundant tax code.  Then, following a quick review of statistical methods, I made an unsuccessful attempt to obtain the statistical method employed in the state Tax Code.
Any questioning of the bureaucracy,as you could guess, resulted in the usual government endless merry-go-round.

Some facts however did surface and these I want to share so the New York State Department of Taxation motives will be a little more transparent.

Years of state deficits and unbalanced budgets have created the need for the Tax Department to collect more so that cuts in budgets could be avoided.  In New York there exists a budget deficit greater than $8 billion dollars.

The top tax  enforcement official, William Comiskey, with the backing of Legislators and Govenor Patterson have unleashed the Department of Taxation and Finance to radically increase the number of audits on small businesses to build the state coffers.

Thus far the goals do not imply anything unreasonable.  However, the methods utilized and the individuals who have been hired in increasing numbers to levy these audits create serious skepticism.  Dubious sampling methods defy statistical plausibility.  These methods include one day samples which are inexplicably extrapolated to define years of income.

That method would be tantamount to estimating the average daily temperature in Batavia, N.Y. by taking a sample of one day then applying it to all days, in all seasons, for three years.  Sound crazy?  It is!   This method may be employed if a small business cannot produce records that the Tax Department considers acceptable and that includes receipts that have been carefully saved but have faded because the vehicle was thermal paper.  Such is the case with L.B. Grand Restaurant.

As stated by a N.Y. tribunal ruling on such a case, “A lack of records does not equate to a presumption that taxable sales have been underreported.  This does not give the division carte  blanche to simply extract convenient mumbers from an index and use them in a manner for which they were never intended.”

The target of such oppressive techniques would  be forced to resort to legal help at a huge  expense.  In many instances this has resulted in dismissal of the claims made by the Tax Department.  In the case of L.B Grand an alleged underpayment of sales taxes amounts to $247 thousand over three years has been decided even though gross receipts are approximately $500 thousand per year.  Sound crazy?  It is!

Involving tax attorneys would be certain to alleviate and possibly get rid of the charges.  Isn’t it amazing that a charge made with certainty by the State could almost inexplicably be made to go away?  Isn’t that a scary concept?   Pay the bill to the state or get a lawyer and he could make it disappear----for a staggering sum paid by the accused to preserve innocence.

Where does this place the small business owner?  I will not pander  your emotions though the overwhelming  mental anguish and suffering of  the innocent is palpable to me.

Think it over.  Can all of this really be happening?   In America?

New York is apparently turning over every stone in an effort to find more revenue to help close its billions in annual budget gaps.

They're now going after restaurants and bars, trying to find a reason to demand more money from the business owners.

Three weeks ago, L.B. Grand in Le Roy got hit with a $247,000 bill for back taxes and penalties.

"I had a nervous breakdown," said co-owner Ron Shoemaker. "I did. I had to go to the hospital. I just lost it. I said, 'My God, I couldn't pay that kind of money if I took the rest of my life.' The place doesn't make enough money to pay that."

The bill was based entirely on a one-day audit on a Thursday in January.

That day, 81 percent of the customers paid cash. Shoemaker said the restaurant and bar's average is 54 percent (he's double checked this figure by reviewing monthly records going back to 2008).

That 27-percent difference is significant to the state. If L.B. Grand were indeed doing 81 percent cash business on a daily basis, that would mean the 40-year-old landmark restaurant was under reporting its total revenue. The state would suspect a restaurant owner in that situation of pocketing all of those extra tens and twenties that aren't showing up in its cash report in order to avoid sales tax.

Shoemaker said he's kept meticulous books and has paid the State every dime the restaurant owes.

His partner, Ron Piazza, said Shoemaker is the kind of guy who can't stand to leave a bill unpaid or for his accounting to go undone.

What got L.B. Grand into this mess, though, is that Shoemaker didn't know he was required to save every guest check (the slips of paper waiters write customer orders on).

When a state auditor found this discrepancy in September, he scheduled L.B. Grand for a random, unscheduled on-site audit.

Six auditors descended on L.B. Grand (the state has hired hundreds of new auditors for this process) and just hung out. One guy sat at the bar, working a crossword puzzle, and  watching every transaction. At the end of the day, Shoemaker provided him with a print out of all that day's business.

It was a fairly average business day, except for the higher than normal amount of cash transactions, Shoemaker said.

Not only can't Shoemaker and Piazza pay the tax bill, they said, they're ready to fight back.

"I don't feel like I owe them anything," Shoemaker said.

Piazza said that while it's no laughing matter, that's about all he can do.

"I can't take it as seriously as he does," Piazza said. "It (the assessment) is just so foolish. They might as well put a one in front of it. It's just foolish."

Shoemaker, who spent seven years in the military and 30 years in skilled jobs before getting into the restaurant business, wonders what the state might have to gain by putting the Main Street eatery and tavern out of business. He figures that between off-track betting, lottery and sales tax, L.B. Grand generates $600,000 a year in revenue for New York, and that doesn't count the taxes paid by six employees who would be out of work if the tax bill holds up.

L.B. Grand isn't alone in facing aggressive auditing by the state, and the story of another restaurant gives Shoemaker and Piazza a glimmer of hope that they can fight the taxation department and win.

Mark Supples, owner of Mother's Restaurant on Virginia Place in Buffalo, also failed to keep his guest checks -- he estimates he would have been storing more than one million from the six previous years if he had -- and was hit with a $1.1 million tax bill after his audit.

"The methods they use are very similar to methods that were used by La Cosa Nostra, also known as the mob," Supples told WGRZ. "What they do is come up with a figure that will really scare you, then they settle for a lesser figure. So basically it's an extortion practice which is really quite effective because the figures they come up with are pretty scary."

The state offered Supples a $250,000 settlement and Supples declined. Instead, he spent $150,000 on legal fees (money he hopes to recover from the state) and won.

From WGRZ:

"When you go to (tax) court, you're presumed guilty and you have to prove you're innocent," Supples said.

In particular, (the court) found that for Supples to have done the volume of business and made the kind of money the state had estimated, every table in his restaurant would have had to have been full for eleven hours a day, seven days a week, for six years.

"I really thought it was time somebody stood up to these bullies and extortionists and expose them for what they are, and because of my case, the state has changed its methods," Supples said.

For its part, New York admits that the new aggressive audits (it's rarely enforced the requirement to keep guest checks before) is being done to help close budget gaps.

Even so, William Comiskey, deputy commissioner for Tax Enforcement, didn't express a lot of sympathy for bars and restaurants that aren't keeping guest checks.

Comiskey said: "We encounter a lot of businesses that tell us they don't have those records, and I'm frankly a little perplexed by it, because they would need the records we're looking at and asking for to run their business properly. But either way, they're required under the law to maintain them, and so I think it's reasonable to require them to have those records."

L.B. Grand is now keeping those guest checks, Shoemaker said. They had their cash register vendor reprogram their machines to print out all of the guest checks at the end of every day so that can be filed. But like many restaurants, the guest checks will be printed on thermal paper, so the ink will fade away to nothing within weeks. But at least the guest checks will be saved.

"I went from having a nervous breakdown over this, to now I'm just mad," Shoemaker said. "I'm going to fight them on this with every breath I have left in my body."

Mike Ognibene has operated a car sales business in Oakfield for about five years, but in the past several months his, and his family's, business interests have expanded to include a hair studio, a gym, real estate and a car wash.

"I really like the Village of Oakfield," Ognibene said. "The people of Oakfield have welcomed us with open arms. I can’t say enough about the people of Oakfield. They were glad we put the gym in. I think they appreciate that there is investment in their community."

Ognibene, owner of Crazy Cheap Cars, is clearly proud of his daughter Jennifer Ognibene, who with partner Samatha Hilchey, opened Hair Studio 25 on Main Street a few months ago.

Jennifer was studing physical education at GCC when she started learning hairstyling at Continental School of Beauty and found it was a profession she really enjoyed.

"It’s what I love to do," Jennifer Ognibene said. "It’s exciting to me to do people’s hair. I especially like doing color because you get to see the results after it’s done."

The hair studio is in the same building as Mike Ognibene's wife's real-estate business, Big O Realty, and Mike's new gym.

Soon the gym, which takes up space at the front of the building with a big window facing Main Street, and the hair studio will share a sauna and tanning booth.

The gym, Ognibene said, was really the product of having an appropriate space but no other business stepping forward to rent the space. He saw an opportunity for an exercise space in Oakfield and decided to buy the equipment and open a gym.

"I wanted to make it a lot of cardio because a lot of people want cardio," Ognibene said. "Then I wanted a universal gym because I didn’t want big bars and guys trying to over  lift. We don’t have a straight bar where there could be any risk of injury, because (people) can come in and leave on their own, 24-hours-a-day, seven-days-a-week. I thought (a universal gym) would be safer.

Six-month-old Jaylynne, with her mother Tesla Greck, met the Easter Bunny for the first time today at Oliver's Candies. The Easter Bunny made a special guest appearance at Oliver's today and gave out candy to dozens of children who came by for a visit.

Are New York's dairy farmers being harmed by possible monopolies in the milk-processing industry?

That's one of the questions the nation's top anti-trust cop will try to answer when she meets with a group of dairy owners at Genesee Community College at 11 a.m., March 27.

The meeting isn't a hearing, but Assistant Attorney General Christine Varney will be on hand to hear directly from farmers what complaints they might have regarding alleged price fixing.

New York Farm Bureau President Dean Norton said the farm bureau has been working on getting farmers to the meeting, but he doesn't have a position on whether there are monopoly practices in the industry.

"I can't say yes or no to that question," Norton said. "There are some people who believe there are monopolies in the industry, but I don't know if there is any hard evidence to prove it. That's one thing I guess Varney wants to find out."

Sen. Charles Schumer helped arrange the meeting after learning that Varney has been working on anti-trust issues in other parts of the agriculture industry.

(via Watershed Post)

In a filing with the SEC, Batavia-based Graham Corp. announced raises for its senior executives, effective April 1, according to the Rochester Business Journal.

Pay for CEO James Lines jumps 3.8 per cent, from $265,000 to $275,000.

Three percent increases were given to Jeff Glajch, vice president–finance and administration and chief financial officer, to $216,000; Alan Smith, vice president of operations, to $183,536; and, Jennifer Condame, controller and chief accounting officer, to $132,613.

Batavia-based Graham Corp., which in 2008 saw the price of its stock drop from $50 per share to under $10 in the space of about three months, continues a string of good news in recent months.

This week Graham announced a quarterly dividend of two cents and another $6 millions in orders.

The orders have come from multiple sources around the world and include work for steam surface condensers installed in the U.S. and Asia.

The first order will be sent to a municipal waste-to-energy project in the U.S.

Growth is what most small business owners aim for, and Marc and Michelle Johnson reached an important milestone last month -- they moved from retail space they rented on East Main Street, Batavia, to a location on Washington Avenue that they own.

The Johnsons set up shop for Millennium Computers, founded in Batavia in 1997, in the former real estate office of Feary Cohen.

Marc Johnson said he had been planning for a couple of years to move Millennium into space he owned and bought vacant land on Washington next to the Cohen office a couple of years ago.

This past summer, he said, Howard Cohen called him and offered him the Feary Cohen space. It was a deal he couldn't pass up, he said.

"As an entrepreneur, you want to keep reinventing yourself," Johnson said.

While the new space is smaller, that's better Johnson said. It enables him and his staff to work more efficiently. They can handle multiple projects more easily.

It also helps that they were able to redesign the office -- which is based on a plan created by Michelle -- to suit their needs.

The office is designed, he said, for efficiency and openness, so that when needed, customers can work directly with the tech fixing or upgrading their computers.

And there's room to grow, either on the vacant parcel to the east or on the south side of the building.

"If business continues to increase the way it has over the past two years or so, I don't see any reason why we won't be able to expand," Johnson said.

In an awards ceremony themed "Simply Elegant," the Genesee County Chamber of Commerce honored its Class of 2009 with a dinner and presentation at a local hotel on Saturday night.  

Pictured above are, front row, Billie Owens, Naomi Silver, Chris Sardou, Mary Sardou, Christine Adamczak; back, Howard Owens, Gary Larde, Buddy Brasky, Tom Sardou, Steve Tufts,  Bill Dougherty, Tony Kutter and Travis Sick.

UPDATE 8:22 p.m., Monday: I should note, it was The Batavian's turn this year  to write, and WBTA to broadcast, profiles of this year's award recipients. I'd like to thank Genesee Graphics for printing, and Bill Mosman, a L.C. Mosman for framing the prints. Bill did an excellent job on was by necessity a rush order.

More pictures after the jump:

Dan "The Voice of Genesee County" Fischer, of WBTA, delivered a few opening remarks.

Tony Kutter accepts the award for Kutter's Factory Cheese Store.

Naomi Silver of Rochester Community Baseball with daughter, Desiree, 8.

Steve Tufts of the Batavia Area Jaycees with Tara Pariso and Cathryn Colby.

Chris, Tom and Mary Sardou of Viking Valhalla/Rose Garden Bowl, the Business of the Year.

Myron "Buddy" Brasky, Batavia High basketball coach (and JV baseball coach), the Geneseean of the Year.

ADDED: Thanks to Melissa George from the Chamber for the picture below.

Don Desjarlais, a representative of Oregon Cutting Systems out of Raleigh, N.C., talks about the differences in chain saw teeth during a chain saw safety clinic at Cedar Street Sales and Rentals.

The annual clinic provides area highway department workers and others who use chainsaws frequently detailed information on the operation of chain saws and their safe use.

Dan Fisher at WBTA was kind enough to air a story today about The Batavian, interviewing me and Billie, with Pachuco in the studio.

Ameka Cooper at Carlson's Studio shot the portrait picture.

You can listen to Dan's story here (mp3).

The awards will be handed out Saturday night at the Holiday Inn.

Previously, The Batavian ran the following stories on our fellow award winners:

• Genesee County Business of the Year: Viking Valhalla Restaurant
• Geneseean of the Year: Buddy Brasky
• Kutter's Cheese Factory Store: 2009 Agricultural Business of the Year
• Special Recognition Award: Rochester Community Baseball
• Special Service Recognition Award: The Batavia Area Jaycees

Tom Rivers is a reporter of boundless energy. He's run in marathons and worked day-long shifts in local farm fields.

Now he's published a book.

The Batavia Daily News staff writer wrote an award-winning series 2008 about his laborious research into just want it takes to work at local farms in Western New York. Those articles are the basis of Farm Hands: Hard work and hard lessons from Western New York fields.

"Books have a little more permanence," Rivers said. "You can read about the titans of industry, such as Dean Richmond, in books, but there aren't a lot of books about the people doing the work. I just think the farmworkers make a great contribution to our community. They deserve the recognition (of being in a book)."

The stories of Tom's days and nights in the fields of Genesee, Wyoming and Orleans counties picking apples and chopping and throwing cabbage give the reader a great sense of just how hard farm work is.

Although he knew it would be challenging, Rivers said he was surprised by how taxing it really is. And it takes training, experience and dedication to ensure that the produce isn't damaged before it's delivered to market.

"There's this feeling that we can just throw anybody into farm work, but not just anybody can do this," Rivers said. "Buyers could reject 40 tons of cabbage if it's not just perfect, if the heads are bruised. There's more pressure on the workers than there is in my job or in most people's jobs. They have to aim for perfection."

The book contains additional material not included in the original newspaper series, Rivers said.

Rivers self-published the book and had it printed at Hodgkins Printing in the Harvester Center.

The full-color book came out looking great, Rivers said. Daily News Publisher Tom Turnbull didn't hesitate to give Rivers permission, without fee, to reprint his own articles as well as the color photos that ran with the series.

"I like that it says, 'Printed in Batavia,' but I don't feel like I was working with a second-rate company," Rivers said. "They were great over there."

The book is for sale locally at the Holland Land Office Museum and Present Tense Books on Washington Avenue.