Business

More than 260 area employees will soon be without a job. WBTA's Dan Fischer reports that the Seneca Gaming Corp. will be laying off 210 of its workers, all of whom are employed at the casinos in Buffalo, Niagara Falls and Salamanca. Seneca cites the "worsening economy." Also, in Rochester, the Democrat & Chronicle will be eliminating 59 jobs, 34 of which will be paid off this week. That accounts for 8 percent of the total workforce, according to an article from the Associated Press, which has this to say of the newspaper layoffs:

The newspaper has not yet specified how many of the layoffs will occur in the newsroom. After the cuts are made, it will have 680 full-time and part-time employees.

Publisher Ali Zoibi says rising costs and a drop in advertising and circulation revenue have created what he called "this unpleasant situation."

He said the newspaper also is trimming non-payroll expenses.

Tough times, it seems, all over.

Beginning this January, Genesee Community College will host a pair of related courses for three successive semesters on "Exploring Business Opportunities" and "Entrepreneurship." Associate Professor Barbara Shine welcomes innovators large and small. If you've got the sure-fire idea for the next big thing, you're welcome. If you're not sure what you want to do, but you know you've got the gumption, you're welcome, too.

As for the best news: it's free, and anyone can attend the courses. College students. Retirees. Workers. Anyone. Just be sure to get your application in by January 15 to be considered for this coming semester. (Scroll down to the end of the post for all the details).

Earlier this week, we took a moment to sit down and chat with Barbara Shine, to pick her brain a bit about what it takes to build a successful business. Here's what she had to say:

The Batavian: Much has been made in advance of the courses about the rough economy and this being, in fact, a great time for entrepreneurs. In the press release sent out by the college, for example, we read: "With the unemployment rate at 6.5% and expected to climb higher, entrepreneurs and energetic American inventors and innovators are an essential element in the recovery of the nation's economy." Can you explain why that is the case?

Barb Shine: Well, we know, because of the employment world, that small businesses hire more people than the total who work for large corporations. That's where the opportunities are. We as entrepreneurial educators need to remind folks from an economic standpoint that it's the small businesses that raise the opportunities to support our communities from an economic standpoint. However, small businesses may have a poor track record of staying in business for a long time. But that is where we as educators can help out. There are a lot of places for entrepreneurs to get education.

What advice might you have for folks who may be considering going into business for themselves? What should they consider at the outset?

First, you need to verify that the market is interested in your concept. I call them concepts. You need to do market research. Find out what alternatives are out there for a consumer. Find out how does your product differentiate itself. Those questions need to be answered. Also, the market has to be big enough to be profitable for the individual. So you look at marketing, first, then financial feasibility, then operations.

One of the beauties of the course is that we will tell people what's out there, what the market will bear from a trend standpoint. People need to understand that (doing) what we're passionate about and making it work in the marketplace can be two different things.

An entrepreneur needs to always be looking out for the next best thing. You do this by social networking, reading the magazines, looking at the competition—and not necessarily the logical competitors. Who would have thought that the customer service style for Disney would work in a bank? In fact, Disney sells their customer service package to large financial institutions.

What will each class entail? Do people need to attend both? Can they attend one and not the other?

In the first class, "Exploring Business Opportunities," the questions that should get answered include: Do I have the right concept that the market would be interested in? Am I passionate enough? Because it requires lots of energy, time, money. Do I have what it takes? What do I need to think about from marketing, operations and financial standpoints? Then we need to verify that there is a market, make sure there is enough of a popoluation and buyers.

In the second class, "Entrepreneurship," we will put a plan together. This class qualifies the details of what I need to do to make it happen. It's the five P's: proper planning prevents poor performance. The goal is to plan... And assuming they need funding, they will use that plan to support loan or investor options. In most cases, folks do bootstrapping entrepreneurship: That's where funding is minimal: from family, savings, second mortgage—they bootstrap it if they can.

How are things looking right now as far as loan options?

It depends on how much money an individual is looking for, their personal credit line. Do I think it's at a standstill because of the credit crisis: No. The basics are still important. There are other alternatives aside from banks, other investor opportunities. Personality, their own financial background—there's an array of variables. An entrepreneur shouldn't be deterred if they have a great idea and there's a market... but they need to come to the table with the right plan to turn their business into a profitable entity.

Shine also spoke about specific trends that are hot right now on the market. They include: green energy, organic foods, Web applications, and alternative energy solutions. In fact, the December issue of Entrepreneur magazine is devoted to the upcoming trends and might be a good read for those considering taking the courses and testing the waters with their own idea.

From the press release:

The Genesee Community College scholarship program is part of the collaborative WIRED (Workforce Innovation in Regional Economic Development) grant, wherein eligible participants will be reimbursed for the cost of tuition and books for two college entrepreneurship courses offered in this coming Spring, Summer and Fall of 2009. The scholarship grants are valued at approximately $500 per semester for enrolling and completing Business 111: Exploring Business Opportunities; and Business 225: Entrepreneurship.

Interested individuals should submit the scholarship application form and related materials as soon as possible. The application deadline for the Spring 2009 semester is January 15th. Women and minorities are strongly encouraged to apply. Scholarship awardees will be notified prior to the start of each course.

For more information on the program or to get a copy of the scholarship application, visit the college's Web site.

Coincidentally, SUNY Geneseo is right now looking for business mentors for their Young Entrepreneurs Academy at the college. From the Academy:

The Young Entrepreneurs Academy is a program for middle and high school students that teaches them how to launch and run their very own business.

Mentors will have the opportunity to assist their student group in the process of developing and writing a business plan and creating an investor presentation used to request funding. We also encourage mentors to share their business experiences with the groups over the course of their meetings. Previous students have indicated that hearing first-hand accounts from members of the business community make a significant impact on what they are learning.

Visit the program's Web site for more information.

A dozen prison farms across the state will be closed down over the next six months, according to WBTA's Dan Fischer. That includes the farm in Attica. The State Department of Corrections has said that the cost of maintaining the farms exceeds the revenue brought in by the produce. Don't know about anyone else, but I was surprised to hear that these farms still existed.

A JP Morgan Call Center based in Albion will remain open, and its 850 employees will remain at work. Fischer reports that there had been concern over whether the center would remain open after Chase acquired Washington Mutual two months ago.

Daily News reporter Roger Muehlig spoke with some shoppers in Batavia Saturday, chatting with those who did not come out for Black Friday.

That's about it for today.

We encourage you to pick up a copy of the Daily News at your local newsstand. Or, better yet, subscribe at BataviaNews.com.

A Batavia business mainstay for more than a century, Loose Ends Vending & Food Service, has been sold, according to WBTA's Dan Fischer. A Massachusetts company will take over the vending service and incorporate it into "the nation's largest vending company," Next Generation, which operates out of Canton. Fischer reports that: "Many Batavia workers will be transferred to the new company's offices and warehouses in Buffalo and Rochester." No mention of how many workers will be affected, or if any stand to lose their jobs. Loose Ends was owned by brothers Thomas and John Houseknecht, along with their brother-in-law William Barton and nephew Michael Houseknecht. The family also owned the Pepsi-Cola Batavia Bottling Corp., which was sold nine months ago to the Pepsi Bottling Group.

Multiple accidents on the Thruway eastbound near Pembroke kept the highway closed down and backed up for nearly 20 miles yesterday evening. Slick wet roads are likely to blame for the crashes.

Some area auto dealers feel pretty strongly about the inevitability and justness of a Washington bailout of the nation's auto industry, according to the Daily News. John Pazamickas, sales manager for Orleans Ford-Mercury had this to say to Virginia Kropf:

"We believe the auto industry is the most important single manufacturing industry in the country, and for the government not to take seriously the livelihood of millions who derive income from that industry is shameful."

Shameful! That's emphatic. What do you think? Is Pazamickas in the right? He says that "for every job the auto industry creates, eight other jobs are affected." Is the auto industry so entwined with the fabric of the national economy that a bailout is "inevitable"?

In other news, the family whose apartment burned earlier this month—in the same fire that destroyed the post office in Pavilion—have found a new home. For now at least, they will be renting out a home on St. Mary's Street.

Youth sports are in the news again. This time, the Batavia Town Board got the pitch: a proposal to rent "15 acres of land at Batavia Turf Farms to give area youths and adult sports leagues a place to play." Folks who are interested are already entertaining visios of sports tournaments and a boost to tourism "by attracting teams and spectators from outside the local area."

The Batavia Town Board approved the $5.9 million budget for next year. That means the property tax rate in the town will remain at zero.

We encourage you to pick up a copy of the Daily News at your local newsstand. Or, better yet, subscribe at BataviaNews.com.

There's still no word yet on when Pontillo's restaurant in Batavia will reopen its dining room, and no one has yet come forward with information regarding the lawsuit between the brothers. But some good news has graced the sign in the parking lot out front of the Main Street restaurant:

Also, a truck has been spotted out back of the restaurant on several occasions over the past week. Renovations?

Please click here to download the complete schedule of events for this season's Christmas in the City celebration in downtown Batavia. Choristers, bands and other musicians will be touring downtown shops throughout the evening. Find out who will be where and when. Don't forget: the Batavia Concert Band and In Jest will be taking the stage in the Batavia City Centre.

A Canadian restaurant chain is planning to expand into Western New York, and Batavia is part of the firm's plans, according to the Buffalo News.

Mississauga-based Coffee Culture Cafe & Eatery Is beginning its expansion in Buffalo. The article offers no specifics on the company's plans for Batavia, such as location or timing.

Coffee Culture President Peter Karamountzos said his company has been eyeing a U. S. launch for about 18 months and picked New York over Michigan and Illinois for a cross-border expansion.

“We’d like to open 10 to 12 location in and around Buffalo,” Karamountzos said. “We like to be in village settings or downtowns, where there’s strong neighborhood foot traffic. We also like being on corners where we can have a physical presence.”

...

The European-style eateries offer a range of fresh-baked goods, panini sandwiches, breakfast and lunch/dinner crepes and coffees. Coffee Culture eschews drive-up windows in favor of more personal walk-in and sit-down service.

“Our theme is ‘Come for a taste, Stay for a visit,’” Karamountzos said. “We know people are in a hurry, but that doesn’t mean they have to settle for a sterile fast-food experience.”

We here at The Batavian heard from multiple sources over the past few days that the St Nicholas Social Club of Batavia had been closed down. We spoke this morning with Tim Walsh, a member who was on site at the Swan Street social club. Walsh is the current club manager.

When asked if the club was closed, Walsh replied: "No, not at all."

"It's mostly been rumors from disgruntled employees who were let go," said Walsh of all the talk that the club was shut down. The family that had been in charge of the place for the past ten to twenty years or so had been let go, he said. It's likely that they were responsible for spreading the rumors. Walsh figured it was a board decision to let them go. "It was time for a change."

St Nick's, as it's more commonly known, has been around since at least the 1950s, said Walsh. It's a membership-only Italian social club, in his description.

"We have 1,100 members," said Walsh. "We're trying to get most of them to come in and patronize the place. It's tough times right now."

"Friday nights we knock 'em dead here," he added. "We're open for lunch Monday through Friday, and for dinner on Wednesday or Friday. Lunch and dinner is not restricted to members. Friday nights are our busiest night each week."

Only members and their friends, however, can drink alcohol at the club because of state regulations. St Nick's also has a karaoke night once a month and hosts "a lot of benefits," he said.

"This is the best club in town," said Walsh. "Just about everyone in town knows we're here."

Libertarian blogger/columnist Megan McArdle has deep roots in Western New York.

I love western New York, which may be the most beautiful place on earth.  I love the old cities, the Victorian shells that whisper of much happier days, and the broad, rolling hills, and the broad flat accents of the people who live on them.  I love waterfalls softly falling downtown and the Buffalo City Hall.  I love the place as you can only love somewhere that your family has been living for 200 years.  I would save it if I could.

But I can't save it.  Pouring government money in has been tried . . . and tried, and tried, and tried.  It props up the local construction business, or some company, for a few more years, and then slowly drains away.  Western New York has been the lucky recipient of largesse from a generous federal government, a flush state government, and not a few self-made men with happy memories of a childhood there.  And still, it dies.

Megan's post is arguing against using taxpayer money to stave off the failure of the Big-3 automakers in Detroit.

It's sounds like, though, she is against any number of government programs to help businesses start and grow, and there's a libertarian case to be made that government props get people overly dependant on handouts, killing entrepreneurial spirit

But what I really thought about as I read her piece was how the businesses that once employed so many people in Buffalo, Rochester and Syracuse, as well as Batavia and LeRoy, didn't get their starts because Congress allocated a wad of cash to finance factories and office complexes.

These businesses got up and running because of the energy and vision of entrepreneurs -- often men, and some women, with little means, just an idea and the determination to see it become something worthwhile. They didn't look around Western New York and see obstacles or excuses. They saw opportunity.

WNY is a great place to raise a family and run a business. What's going to save it isn't government programs, but a new generation of entrepreneurs.

Batavia is doubly blessed because it already has a model for building new businesses with a track record of success -- the Harvester Center -- Joe Mancuso's sacred structure of entrepreneurship. To this day, as we reported yesterday, the Mancuso Business Development Group is already leading the way in helping new businesses get started.

I've toured the Harvest Center -- there is plenty of space available for any enterprising individual who wants to start a new business.

Also, Alice Kryzan may have lost the Congressional race, but her push for developing green industries in Western New York shouldn't be forgotten. In fact, we should encourage Alice to carry on with the effort.  She doesn't need to be an elected official to be an effective leader in bringing together business owners and bankers to help create new jobs. In fact, it would probably be preferable to promote the effort without, or very little, government assistance.

When I look at things like the Harvester Center, or parts for wind turbines being hauled down Main Street, or local farmers experimenting with alternative energy sources, or an increase in shipping on the Erie Canal -- when I see and read these things, it gives me hope for the future of Western New York.

There's no reason not to expect WNY's best days are ahead.

Notes: Though I occasionally read Megan's blog, hat tip to Buffalo Pundit for pointing out the post; Also, Megan uses a photo of the Kodak Building from Flickr credited to SailorBill.  Ironically, SailorBill is my boss. The picture at the top of this post is one I took myself two years ago.

Last week, The Batavian reported that Pontillo's Pizzeria owed in excess of $112,000 in state taxes. That report came on the heels of an article in the Daily News in which Sam Pontillo claimed that he closed the restaurant in order to make renovations and officially purchase the property. A second article appeared in the Daily a couple days after our post that further confounded an already ambiguous story. Since then, more information has become available that may help us to ask some better questions in the hopes of getting some better answers.

On October 31, a civil suit was filed in Genesee County in which all three Pontillo brothers were named. That suit was brought by Buffalo attorneys Amigone, Sanchez, Mattrey & Marshall LLP on behalf of the plaintiff: John Pontillo. Listed as defendants in that case are: Sam, Paul and Salvatore Pontillo. No other details of the case were available at the Office of the Genesee County Clerk, and we have so far been unable to contact any of the brothers. We had left messages for Sam Pontillo last week that were never returned.

A week later, on November 7, a mechanic's lien was filed with the county by Roy H. Turnbull Inc. againt the estate of Elizabeth Pontillo and Pontillo's Batavia Pizzeria Inc. in the amount of $1,181.29. No specifics were listed in the record.

Those are the most recent facts. A search earlier today revealed no new filings with the county. Let us now take a moment to review the news as it was reported in the Daily. We feel that there are some contradictions and ambiguities that may help to shed some light on the situation.

From the first article, which appeared on November 4:

(Sam) Pontillo was advised that it would be better to just close the shop down and then re-open under new ownership. He regrets that he had to cancel a pre-election night party ... But he had no choice, Pontillo said. He was told that renovations were to happen now.

Firstly, who "advised" Sam Pontillo to close and "told" him that renovations had to "happen now"? In the same article, Beck writes that: "Sam has been on site running the Batavia and Le Roy operations the last several years." So if he's running the place, who is telling him to close it? Secondly, what are these renovations that they cannot be postponed even a single day so that the restaurant could cater a local party?

What's most confusing, however, is that in this first article, Sam Pontillo claims responsibility for both operations, in Le Roy and in Batavia. He would have to be running the place in order to make the decision to close it down, right? But in the article that appeared in the Daily on November 7—after The Batavian broke the news that the Batavia restaurant owed some $112,000 in unpaid taxes to the state—Sam Pontillo is quoted as saying: "I was locked out of the whole operation. John and Paul worked there (in Batavia). John was operations manager." Doesn't that contradict the claim in the previous article that Sam has been running the place for "years"?

Joanne Beck writes:

It was only after (Sam Pontillo) started the paperwork to buy the city property that Sam Pontillo became fully aware of the tax situation, he said. He doesn't dispute that tax warrants have been filed by the state Finance Department and Genesee County Clerk's office against the family business, which includes Pontillo's Batavia Pizzeria, Inc. and Sam's Tomato Pies, Inc.

But he doesn't claim them as his, either. The business is still owned by his mother and was not run by Sam, he said.

What!? Does Sam Pontillo run the business or not? What does it mean to be "fully aware"? Could he have been "partially" aware? What would that have signified? How can Sam not claim the tax warrants filed against Sam's Tomato Pies?

It is also reported in the most recent Daily News article that: "Genesee County records did not show any outstanding tax warrants on the Le Roy Pontillo's." That's true. As Sam Pontillo himself says of the Le Roy location: "I don't owe one cent for this place."

But Pontillo's Le Roy Pizzeria Inc. has been named in a civil suit filed by the Workers' Compensation Board of the State of New York that was filed on October 20. The Board also filed a money judgement in the amount of $1,250 against the Le Roy operation. As for any outstanding tax warrants, there are none. Pontillo's Le Roy Pizzeria Inc. was, however, served with a tax warrant by the New York State Department of Taxation and Finance in the amount of $700.63 in November, 2007. That was paid.

All in all, there are more questions than answers at this point, and I have yet to see a single car parked at the Batavia Pontillo's, which is supposed to be undergoing renovations right now. I guess we ought to take Sam Pontillo at his word when he says: "The remodeling won't be an obvious change that patrons will notice."

A pair of articles in the Buffalo News this morning has bleak and bleaker pronouncements to make on the upstate economy as we head into the holiday season. While economists have yet to declare the big 'R' word at the national level, researchers at one local university have no trouble making such a statement about our own home turf. From one article: "University at Buffalo researchers are declaring a recession in New York."

Not only have we taken off with a head start, but it looks like we'll be huffing and puffing out on the track field of troubled economies even after the nation has made its laps and gone:

“Given that the current decline has been precipitated by the implosion of the real estate bubble that created a serious financial crisis for major Wall Street investment banks and insurance companies, New York state’s economy is again likely to be hit harder than the national economy,” said Isaac Ehrlich, a UB economist. Wall Street accounts for about 20 percent of the state’s tax revenues.

In another article, picked up from the Associated Press, holiday job seekers are found to be too many for too few open slots.

The odds of landing a part-time job at department store operator Bealls Outlet Stores this holiday season are slimmer than getting into Harvard University: It’s one out of every 45.

It's much the same across the nation. In California, one 7-Eleven received more than 100 applicants in a week for a position that pays $8.50 per hour.

The national trends are being borne out locally as department store, convenience chain and call center managers who only a year ago had to scramble to fill holiday jobs are seeing a surge in the number of seasoned applicants — many of them laid off in other sectors and desperate for a way to pay the bills.

That was the case with Tracey Gibbs, a Buffalo resident who landed seasonal work at keepsake store Things Remembered in the Boulevard Mall. She said last month that she accepted a seasonal job because full-time positions were scarce.

What have you seen here locally? A few weeks back, the Daily News published a handful of stories on the economy that all sounded the note of cautious optimism. Since then, it seems things have only gotten worse. We've heard about troubles with several downtown businesses, and whether that's linked to the general economic downturn or not, it doesn't bode well. Are you a local retailer? Have you seen more applicants than usual looking for a part-time holiday gig? Have you cut back your positions?

Fire hydrants in the village of Oakfield will be flushed starting Monday and ending on Friday of next week, according to WBTA's Wayne Fuller.

Seventy workers at the Fisher-Price facility in East Aurora may soon be out of a job. The company, run by Mattel, plans to cut 1,000 jobs across the nation due to "the economic slowdown." About 900 people are employed at the facility in East Aurora.

Batavia-based manufacturer Graham Corp. has seen its sales slow in the second quarter after so many months of strong growth.

From the Buffalo News:

The troubles in the financial market and the plunge in energy prices are taking a toll on Graham Corp.’s sales and orders, but company executives said Tuesday they don’t think the slowdown will last long.

Investors, however, had a more bearish view, focusing on the company’s slowing sales growth and flat profits during the second quarter and causing Graham’s stock to plunge by 27 percent, or $5.70, to $15.25.

Graham Corp. is no more immune to the current credit crisis than anyone else, it would seem.

Because of the upheaval in the energy and credit markets, which have made it difficult for independent refinery operators to borrow the money needed for expansion or upgrade projects, Graham’s new order bookings fell by 15 percent in the summer quarter. Lines said he also expects orders to be “light” during the final three months of the year.

Still, (Graham's President R.) Lines said Graham’s customers continue to work on new projects and noted that the company still has ample opportunities to bid on future work.

Don't expect any economic slowdown to slow down the company's own verve. Lines is already talking aquisitions.

With nearly $43 million in cash on its books and virtually no debt, Lines said he sees the ongoing economic upheaval as creating an opportunity for Graham to use its solid financial position to make acquisitions, although asking prices remain high.

Graham is interested in deals that would be less than $100 million in size and broaden the company’s line of custom- engineered products for the energy industry, ranging from refinery projects to the renewable energy field. The company also is interested in deals that would expand the company’s geographic footprint, he said.

Monday morning, Pontillo's restaurant in Batavia closed up shop temporarily for renovations. "It's all good," owner Sam Pontillo told Daily News reporter Joanne Beck. In that article, which appeared in the Tuesday edition of the Daily, Beck wrote that Pontillo "expects to re-open ... within a couple of weeks."

One has to wonder if that's really the case. Owing to an anonymous tip, The Batavian has learned that "Pontillo's Pizzeria" in Batavia owes more than $112,000 in unpaid taxes to the New York State Department of Taxation and Finance. In an attempt to collect those funds, the state department has issued six tax warrants to "Pontillo's Batavia Pizzeria Inc." totalling $58,379. Another roughly $53,000 in unpaid taxes were the subject of warrants issued to other "trade" names of Pontillo's.

Finance Department Spokesperson Susan Burns:

"Generally, the tax department tries to work with the taxpayer and work on some sort of negotiated settlement in order to satisfy those warrants. Generally we like to see everything come to a positive outcome, and that's generally what happens in these situations. Sometimes, is there a time when a business is seized? Yes, that happens also."

No seizure of property has yet been made by the state, however, Burns said. Pontillo's is not faced with any deadline when the taxes must be paid. Burns stressed that the department does its best to negotiate a settlement before it comes to legal seizures.

In a records search at the Office of the Genesee County Clerk, The Batavian turned up six tax warrants issued to Pontillo's Batavia Pizzeria Inc. Two of those were for withholding tax, three for sales tax and one for corporate tax, explained Burns. They were issued between March 28 and October 17, of this year. All are still outstanding.

In addition to these, we discovered another tax warrant issued to "Sam's Tomato Pies Inc." and "Pontillo's Pizza" in the amount of $36,117.80. Another warrant in the amount of $17,585.03 was issued to "Pontillo's Pizzeria." Burns explained that "Pontillo's Batavia Pizzeria Inc." has been trading under the name "Sam's Tomato Pies Inc." for about a year or so now. Pontillo's Pizzeria is the sort of general rubric that comprises the Batavia Pizzeria Inc. and Sam's Tomato Pies. That entity is responsible for all of the owed taxes listed under all three "trade" names, which amounts to more than $112,000.

A warrant was also issued to Pontillo's Batavia Pizzeria Inc. by the New York State Department of Labor in the amount of $1,640.92. The Workers' Compensation Board of the State of New York has also filed a judgment in the amount of $1,250, in addition to a civil suit filed with the state's Supreme Court.

Whether this is related to the recent closure of Pontillo's, we cannot say. The Batavian tried to contact Sam Pontillo earlier today. We left a message at the Pontillo's restaurant in Le Roy at 3:30pm. We also tried a telephone number listed for John Pontillo in the Batavia phone book, but that was disconnected.

Pontillo's closed Monday morning and will remain that way for a couple of weeks or more, according to the Daily News. The restaurant will undergo renovations in that time.

In other news, the city school district—along with others all over the state—have been warned "to brace themselves about future state aid," according to Pat Burk, Batavia's Board of Education president. More info should become available in a couple weeks.

We encourage you to pick up a copy of the Daily News at your local newsstand. Or, better yet, subscribe at BataviaNews.com.