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January 27, 2015 - 7:19pm

Naysayers aside, BDC gave city a return on its investment in 2014, coordinator tells council

posted by Howard B. Owens in batavia, economic development, downtown, bdc.

The City of Batavia has realized a 500-percent return on its $360,000 investment in community development, Julie Pacatte, economic development coordinator, told the City Council on Monday night.

The Council has authorized $90,000 a year over four years to the Batavia Development Corporation- that's $360,000. In return, the BDC has generated more than $2.1 million in public-private investment in Downtown.

Several of the projects managed by BDC were building owners constructing renovated apartments, all of which rented immediately.

But perhaps the biggest win is the renovation of the old Carr's Warehouse in Jackson Square.

The property sat vacant and deteriorating for three years. The city marketed the building as a revitalization project and eventually found a developer.

With the help of a $115,000 state grant, Paul Thompson and his partners invested more than $500,000 in constructing four apartments and a first-floor office area.

The vacancies were filled as soon as construction was completed.

The property was assessed at $30,000, but since it was a city-foreclosed property, it was generating zero tax revenue. Now it's assessed at more than $200,000 and on the tax roles. (The developer has the option to apply for a tax abatement by March under a municipal program that works like a PILOT, offering tax relief on the increase in assessed value).

The nine new residential units, using current economic models, are worth about $5,000 each in extra consumer buying power Downtown, Pacatte said.

Pacatte's job has been funded in the past through the use of revenue generated by Batavia Downs and transferred by the state to the city on an annual basis.

Since this is not general fund revenue, it doesn't have any impact on local property taxes. Even so, there is some question as to whether the current council is willing to once again use city money to fund the development coordinator's position.

Pacatte's Monday presentation could be seen as a pitch to save her job, but that didn't stop her from getting a little feisty. She was full of energy during her presentation, and when she spoke about negative attitudes, Councilwoman Rose Mary Christian challenged the remark and Pacatte shot right back with her own view.

The topic of the exchange was the mall, which Pacatte had already called a travesty and an embarrassment and one of the factors weighing down economic development in the city.

"I think maybe people have a negative attitude because they have heard the same old thing year after year," Christian said. "How many years have we heard we're going to do something with the mall. I've sat on this board for 24 years and I've heard year after year we're going to do something with the mall."

Pacatte responded that she didn't say the BDC was going to do something with the mall, just that the issue needed to be resolved.

The negative attitude discussion harkens back to a consultant report from three years ago, which Pacatte referenced, that said one of the things hurting Batavia is a persistent, nagging culture of antagonism to new proposals.

From the report (pdf; page 29):

... many residents and business leaders alike are quick to say what is right about the place, but only after they or others have said how it is not the community it used to be. This habit goes to the core of the challenge for Batavia. Regardless of how effective the city government is, or how successful the schools are, or how homeowners keep up beautiful homes, there is always the perception that things used to be better. This sets up an impossible goal: Batavia needs to be as good as its finest past features, but without any of its previous problems, and certainly without any of yesterday’s resources. It allows critics to say, “see, I told you so.” It lives on phrases like “that can’t be done,” and “we tried that,” and “here’s why that won’t work.” Until the community addresses this problem, Batavia won’t achieve its full and substantial potential.

Pacatte has succeeded in helping to bring new development to Downtown Batavia despite the naysayers. Each new apartment development was met by a wave of criticism and endless predictions that nobody would rent such high-priced units.

Yet, there are no vacancies. Landlords rent the apartments as quickly as they become available.

The Carr's project was roundly criticized, yet it's successful.

The negative attitudes are just something to try and work though as a professional, Pacatte said after the meeting.

"I think it's important to listen to what the community is saying, but we also have access and in our profession we understand that these projects do happen and happen a lot in other communities and there's no reason it shouldn't happen in Batavia," Pacatte said. "We bring the folks to the table who can make it happen.

"It's important to hear some of the negativity at the time to maybe rethink how we approach a project," Pacatte added, "but it's important to be a professional and understand that it is possible and persevere to that end. I was hired to impact the economic community in Batavia and I believe that's what I'm doing when I push those projects forward."

In 2015, the BDC will look to advance the Batavia Opportunity Areas, such as the Della Penna property on Ellicott Street, and right next to it, the Santy Tires property.

The mall fits in there somewhere, as well, though that is a much stickier problem with all of the competing interests and ancient animosities. Pacatte believes there might be an opportunity to apply for funding in 2015 through the Finger Lakes Regional Economic Development Council to pursue some sort of long-term solution.

She also sees as her job in 2015 an effort to foster a greater entrepreneurial spirit in Batavia, to coordinate and implement a new micro-enterprise grant program, and support an industry-specific incubator.

The BDC will also apply for more redevelopment grant money from the state.

Mark Potwora
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This job could be done by the Asst Manager...Helping create a few apartments with government money over three years does not seem a success..The city can contract out grant writers..This is not a full time job..The city got rid of Ed Flynn for showing the same results ..The tax rate should be going down but it is going up so i guess the tax rolls aren't growing..Look at Masse Pl. not to much going on there.more tax dollars down the drain..Also how many of the loans the BDC gave out are in default ..

Peter O'Brien
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"I think maybe people have a negative attitude because they have heard the same old thing year after year," Christian said. "How many years have we heard we're going to do something with the mall. I've sat on this board for 24 years and I've heard year after year we're going to do something with the mall."

Pot calling the Kettle BLACK

Christian has been there for 3/4 of my life and hasn't fixed the mall.

John Roach
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Peter, duh! The mall stores/offices are private property. The court issue is over maintenance of the concourse. Now explain how Christian could "fix" the mall?

John Roach
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I think part of the resentment towards funding Julie Pacatte for the BDC is the fault of Molino.

When this job was first created for a two year trial, Molino said it had to meet certain criteria. And at the end of two years Council would be told if the criteria was meet and either decide to end the funding or make the position permanent.

When asked for the criteria, he never gave it. Nobody knew what it was. Then at the end of the two year mark last year, Council found out they had somewhere approved funding again.

Had Molino been transparent and had he told people at the start what the criteria and goals for the job where from day one, there might be more support on Council. There is a big lack of trust in the Manager with some on Council.

Peter O'Brien
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Didn't we just learn the city owns the mall? Seems to me Council has some authority here.

http://thebatavian.com/howard-owens/mall-association-claims-centennial-c...

Reached at his office this afternoon, Molino said, "We own the mall."

John Roach
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An exaggeration in a comment to a media person. Just try facts (it will not hurt). Every store and business, except of course City Hall, is Private Property. The concourse is another issue.

Try real hard to understand the idea of private property. We do not own Penny's or the theater. We do not own the others.

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