Batavia Development Corporation

The Batavia Development Corp. Board of Directors agreed this morning to hire Rachael Tabelski as the new economic development director, replacing Julie Pacatte, who left a couple of months ago to pursue a new job opportunity.

Tabelski is a Batavia resident and has been marketing and communications director for the Genesee Economic Development Center for more than seven years.

Board President Pierluigi Cipollone, who served on the search committee, praised Tabelski as clearly the most qualified among a field of five candidates, that included two from Buffalo, one from Texas, and a native New Yorker from the Finger Lakes region who currently works in Massachusetts.

"She came to the interview very well prepared," Cipollone said. 

He said she had a spreadsheet of all BDC's projects, worked side-by-side with Pacatte on preparing the city's successful bid for the state's Downtown Revitalization Initiative project, and clearly understands economic development.

The job offer to Tabelski, with a salary of $67,000 annually, which is $2,000 more than the BDC paid Pacatte, was approved unanimously.

"It's a no-brainer," said Board Member Steve Pies. "She is well versed in our projects and she is passionate about it.

The fact that Tabelski has been working with Pacatte on city projects as part of her job with GCEDC makes her a perfect fit for the job.

"There will be no hiccup," Valle said. "She is knowledgeable about everything. She has a great vision and goals, and she's fantastic."

Tabelski is married to City Council Member Adam Tabelski. Cipollone said the only conflict of interest will be for Adam Tabelski will be on votes related to his wife's compensation. He will need to recuse himself on those issues when they came before the council.

In the discussion, board members questioned whether the compensation was appropriate. Cipollone said that based on his research the salary range in similar-sized cities in the region is $70,000 to $90,000, so the BDC is on the low-end of the scale, he said.  

That prompted Steve Casey to ask if, notwithstanding her ties to the community, a low salary might encourage her to move on to another job sooner rather than later. Cipollone noted the BDC has limited funds to work with and anything paid in salary would mean less available for projects.

Rachael Tabelski will start her new job July 6.

The Batavia City Council is willing to put something on paper expressing support of the Batavia Development Corporation but it can't make a commitment to funding the economic development agency for five years.

The BDC, through its president, former City Councilman Pier Cipollone, was seeking a five-year funding commitment from the council. Cipollone said without long-term support by the council, recruiting a new executive director will prove to be difficult.

“We need to provide some form of stability in the organization to hire a qualified candidate,” Cipollone said.

The executive director’s position has been vacant since the resignation a month ago of Julie Pacatte.

In making his case for the five-year commitment Cipollone cited the agency’s track record of attracting state and federal grants to spur development and the management of its own revolving loan fund to help local entrepreneurs. 

“For every $1 invested in the BDC,” Cipollone said, “the city has over $30 returned in public and private investment.”

Council President Eugene Jankowski explained that individual councilpersons were prohibited from making financial commitments beyond their individual terms of office. He then suggested that council adopt a non-binding “letter of support” for the BDC and place the item on the agenda for the next council business meeting June 11.

Among the accomplishments for the BDC during Pacatte’s tenure was the creation of several new residential units downtown, which have remained at full occupancy since going on the market, the conversion of the former Carr’s Warehouse into a mixed-use office space and apartment complex, and the opening of FreshLAB/Eli Fish Brewing Company.

The largest project still pending, however, is the Ellicott Station development, in which Savarino Companies plan to convert the former Della Penna and Santy’s properties into apartments, offices, and a brewery restaurant for Resurgence Brewing out of Buffalo. The groundbreaking for that project has repeatedly been delayed.

Cipollone addressed some of the frustrations and concerns over project delays and said it’s a very complex project. Because of the environmental problems at the site, there are multiple funding mechanisms from the state to help alleviate those above-market costs. Savarino is also using a complex private-equity-funding vehicle, which adds to the complexity of closing the funding.

The best the city can do, Cipollone suggested, is wait for Savarino to close funding. There isn’t, at least right now, a better option.

“It’s the only hope I’m aware of,” Cipollone said. “We had put it out to bid, and Savarino was the one viable company. They’ve done similar work in Buffalo where they’ve taken on a dirty site and have done an excellent job with them, so they’re used to dealing with this type of grief.”

In other council business, a draft resolution to fund the restoration of the Redfield Parkway entrance pillars failed to be moved to the next business meeting. Council instead asked interim City Manager Matt Worth to research other options to fund the project that has been estimated to cost between $57,000 and $67,000.

The Batavian's news partner WBTA assisted with this story.

Press release:

The Batavia Development Corporation accepted the resignation of Julie Pacatte, economic development director in charge of economic development for the City of Batavia. Pacatte has accepted a position for a private-sector employer located in New York’s Capital District Region. 

“To say that she will be missed is an understatement, Ms. Pacatte was instrumental in a number of initiatives to improve the economic environment in Batavia,” said Pierluigi Cipollone, president of the Batavia Development Corporation. “She has advanced economic development in the city to new levels and facilitated more than $30 million in pledged investment into the city."

Pacatte was successful in leading the way to develop the Batavia Pathway to Prosperity (BP2), a first in the state PILOT Increment Financing (PIF) district that diverts new PILOT payments from three tax jurisdictions (City, School, and County) to develop the most blighted and impoverished areas of the city.

The program was developed following the city’s success in creating the Brownfield Opportunity Area and identifying sites primed for investment. These efforts lead to the attraction of $20 million investment pledge by Savarino Companies at the Ellicott Station brownfield site. 

Pacatte led efforts to craft the successful $10 million Downtown Redevelopment Initiative (DRI) application, was the driving force behind the BDC’s Public-Private Partnership, the freshLab restaurant incubator, as well as an administrator for loans and grants to aid new and existing businesses in the city.

She has helped bring the BDC to solid ground and advance our mission of new economic opportunities in the city of Batavia. The BDC still has much to do and will continue to work in the city helping small businesses, ensuring that the Savarino project can break ground this summer, working to advance development at Creek Park, assisting DRI project winners and working with all economic development partners in county and across the region. 

“Thank you, Ms. Pacatte for your passionate efforts to make Batavia a better place to work, live and play and I wish you continued success in your future pursuits,” Cipollone said.

Update -- 5:50 p.m. with Judy Hysek's comments

The Batavia Development Corporation Board of Directors this morning approved a $30,000 grant/loan package for Judy Hysek’s EDEN vegan restaurant, the second start-up business at freshLAB in the former JJ Newberry building on Main Street in downtown Batavia.

“Judy’s very distinctly different concept, complete business plan, unwavering pledge to regional ingredient sourcing and commitment to start a restaurant earned her the freshLAB opportunity,” BDC Executive Director Julie Pacatte said.

The restaurant will be situated with Eli Fish Brewing Company, which was the first start-up as the anchor tenant.

The announcement was welcome news to Hysek, who went through a six-month process – starting with the first-ever freshLAB Foodie Challenge in September and followed by a five-month restaurant ownership Boot Camp taught by a variety of respected industry representatives.

“Julie had left me a voicemail saying I was selected and I think I started shaking a little when I was listening to it,” said Hysek, who noted that her husband, Chris, and she have been wanting to start something of their own for the past three or four years. “I’m honestly very honored to have been selected as all of the other contestants are very talented and hard-working.”

BDC officials will be approving a third business for the space, with an anticipated announcement in the coming weeks and opening expected in May.

Pacatte said that dozens of community volunteers participated throughout the process, which also involved more tastings, menu critiques and business plan evaluations.

“A local selection committee reviewed freshLAB expectations along with all related experiences, scoring, feedback and business plan presentations to determine that Judy’s EDEN vegan restaurant was a great fit for our freshLAB restaurant incubator,” she said.

Hysek said that she had been running a small nonprofit gift shop in Rochester for a few years and when they moved back to Batavia, they wanted to do something here.

“We took a small business class at GCC and met Barb Shine last year. She mentioned the freshLab back then and we thought it might be a possibility,” she said.

“Then a few months later we took a tour of the Harvester building and met Julie Pacatte, who also encouraged us to look into the Foodie Challenge for the freshLab space. So we gave it a shot, received some really great feedback and a ton of encouragement and support, and here we are.”

Hysek said the menu features “Not Dogs” made from marinated and grilled carrots that take on the taste of their toppings.

“It’s a much lighter alternative to a regular hot dog and these don’t leave you feeling bogged down,” she said. “My favorite toppings are spicy brown mustard and carmelized onions, but we’ll have a lot of other toppings for customers to choose from as well.”

She said other choices include “great tasting bar food” such as poutine, cauliflower wings and nachos, as well as house-made cheeses, weekly and seasonal specials, a couple of dessert choices, house made Kombucha, lemonades, and fresh pressed juices.

The entire menu is vegan (no animal products).

The tentative timeline for EDEN begins this month with the purchase of specialty equipment, BDC-sponsored training with Chef Tracy prior to opening and the café set-up, with tentative opening and ribbon cutting on April 22 (Earth Day).

Hysek said her family, including her husband, father and brother, are very supportive. She said she plans to be open noon to 9 p.m. every day except Tuesday to start and take it from there. Her goal, after 18 to 24 months at freshLAB, is to move into a more permanent space in Batavia and further expand the menu.

Eli Fish Brewing Company opened for business this week.

During a budget workshop Wednesday night, the occasionally controversial Batavia Development Corp. received across the board support from members of the City Council.

Up for discussion was the $110,000 the city provides to the BDC to fund its operations, including paying the salary of Economic Development Coordinator Julie Pacatte.

Councilman Al McGinnis opened the discussion suggesting that while it might be OK to fund BDC this year, he would like the funding reviewed next year.

By the end of the meeting, however, McGinnis backed off that request because he learned funding for BDC comes from the video slot machine proceeds paid to the city by Batavia Downs.

"As long as it's the VLT money, that's fine," McGinnis said after the meeting.

He said he doesn't have a problem with the BDC and likes the work Pacatte and the board of directors are doing. He would just like to see a more detailed, nuanced regular report from the BDC on its projects.

At that point, Councilwoman Kathy Briggs jumped in and said the BDC regularly emails council members about its projects.

As for residents who are sometimes critical of the BDC, she thinks more of them are excited to see what's coming, and once the two in-progress breweries open up, that will help validate the work of the BDC in the eyes of a lot of people.

"Once they start seeing something, they’re going to get excited," Briggs said. "They’ve been hearing it for so long and they ask when, but when they start seeing a little progress, they’re going to get excited."

Both during the meeting and after, Councilman Paul Viele said the money the City is providing the BDC is money that is being well spent.

"For the $110,000 that we’re giving them, we’re getting a bang for our buck," Viele said. "You see what the result is. It’s great for the city. Whatever we can do to help them, let’s move forward."

During the meeting, Councilwoman Rose Mary Christian questioned why BDC's budget was $125,000 last year. Interim City Manager Matt Worth explained that $15,000 was added to the budget because of some anticipated environmental remediation. It turned out that work wasn't necessary, the money wasn't spent and it was moved back into the general fund.

Worth also provided a short history of the BDC, which dates back a couple of decades. At one time, Ed Flynn, now a consultant working on the Downtown Revitalization Initiative for the state, worked for the city handling economic development. The BDC received federal funds to establish a revolving loan fund. After Flynn's position was eliminated, the BDC board and the loan fund remained but with nobody to administer it. That led to some problems with collections on the loans. A coordinator's position was created both to help with the administration of BDC functions, but also to pursue economic development opportunities.

Since then, during Pacatte's tenure: several new market-rate apartments have been added to the downtown residential stock; the Carr's Warehouse has been converted into a mixed-use complex; a developer has been secured for the former Della Penna property and the Santy's Tires property; and soon the J.J. Newberry building will become the Eli Fish Brewing Company with the FreshLab restaurant incubator as part of the project.

Councilman Adam Tabelski expressed concern that talk of defunding the BDC could hamper the BDC's relationship with developers and other development partners, creating uncertainty about the BDC's continued operation.

"It perplexes me that this matter is even coming up as a topic," Tabelski said.

Christian asked about the BDC's contribution to the city winning the region's Downtown Revitalization Inititiviative contest, with its $10 million prize for economic development, and Council President Eugene Jankowski said that Pacatte assisted in the application process plus the fact that the city has the BDC, as well as the Batavia Business Improvement District, gave the city more points to help in its winning score.

The budget workshop started off with a discussion about funding a part-time staff position at the youth bureau. In the past, the position was filled by a member of AmeriCorps but the Federal government has eliminated AmeriCorps.  

The County's Youth Bureau Director Jocelyn Sikorski, who operates the city's youth bureau program as part of a shared services agreement, said the job is critical to the operation of the youth bureau. 

After a discussion about the importance of the programs the youth bureau provides to give children in the city, especially children from poorer homes, constructive activities and meals, the council voted to fund the position.

"We pay now or we pay later," McGinnis said. "And if we pay later, we pay dearly."

The council also addressed the topic of a spray park on the south side of the city. On Christian's request, with council support, Worth said staff will work up a report on the cost of the smallest possible spray park in Farrall Park, just to give council members of an idea of what it might cost, not that the spray park will be located there or be a park like the one in the report.

In today's dollars, the Austin Park spray park would cost $500,000.

Tabelski said Albion is building a small spray park for a couple hundred thousand dollars.

The current spray park uses about six million gallons of water each summer. To picture that much water, he said, imagine filling and emptying the water tower over by the VA Center four times.

The city buys that water at a wholesale price.

Batavia City Manager Jason Molino admits that a communication breakdown has resulted in the confusion surrounding a proposal to redevelop the Old Engine House on Main Street with help from a Restore New York Communities Initiative grant.

“Maybe we all could have done a better job communicating,” said Molino, speaking by telephone tonight.

Ever since Molino’s memo to City Council dated Nov. 22 – a report that apparently wasn’t read by all council members prior to their Nov. 27 meeting (Thanksgiving came in between) – there have been numerous public comments criticizing the process.

Some of those comments placed the blame on the city manager for “jumping the gun” and others questioned the selection of Thompson Builds of Byron and Churchville as the developer.

A public hearing on the proposal to renovate the former restaurant into a commercial/residential building and to apply for a $1 million Restore NY grant to help fund it was scheduled for Monday afternoon, but was abruptly cancelled after Genesee County Manager Jay Gsell said the County Legislature wasn’t ready to declare the property as “surplus.”

This, as would be expected, cast a negative light upon all parties involved, especially Molino for bringing the project to City Council.

“(Cancelling the public hearing) caught me by surprise,” Molino said, noting that Gsell told him that the legislature needed more time to review the plan.

Currently, the Engine House, which is owned by the county, is the home to public defender offices and a facilities management shop.

Molino said he was aware that the county had been looking to surplus the property for some time – “a couple years,” he said – and that Julie Pacatte, coordinator of the Batavia Development Corporation, had referred a couple investors to the county.

“I know that Jay had people looking at it as well; multiple people already looked at it,” Molino said.

Molino said that Pacatte came to him with news that Thompson Builds was interested in renovating the building to have a commercial venture on the first floor and apartments on the second floor – and that he was excited by the prospect of putting the property back on the tax rolls.

“That was a few weeks ago,” Molino said, after the City submitted a letter of intent to apply for the grant and was accepted – matters that weren’t communicated to City Council.

“I could have done a better job of advising Council,” Molino said, adding that he also should have received confirmation that the county was ready to relinquish the building.

As far as the procedure to dispose of surplus property is concerned, Molino said the county had several options, including an auction, request for proposal (RFP) or “appraised value and straight deal contract.”

He said the City’s role was simply as a “pass-through” since the county was not eligible to apply for the Restore NY grant.

Molino said he knew of two interested investors, including Thompson Builds, but said that it was Pacatte who “worked with Thompson to develop it a bit more.”

Pacatte could not be reached for comment tonight.

For the record, Thompson Builds has done work at Genesee County Building 2, VA Medical Center, Genesee County Airport and Liberty Pumps in Bergen, and did major work at the Big Tree Glen apartment complex on West Main Street Road.

When it was pointed out that Pacatte reports to him, Molino acknowledged that “maybe I should have been involved more.”

Despite the setback, Molino said he hopes that City Council would consider applying for the grant in 2018.

“We need to come together and gear up for next year,” he said, “by communicating with the county on the disposal of the property and with the investor. By getting everybody on board, we should be able to move forward.”

• The startup and/or expansion of seven Batavia-based businesses that capitalized on microenterprise grants;
• The imminent transformation of the former J.J. Newberry building on Main Street into a brewing company and “freshLAB” restaurant;
• And, of course, the $17 million renovation and redevelopment of the former Santy’s Tire Shop and Soccio & Della Penna Construction site on Ellicott Street into a retail/commercial/residential complex.

These projects, along with a handful of other grant-aided ventures, signal a continuing, successful effort by the Batavia Development Corp. to revitalize the city’s downtown and broaden the tax base throughout the municipality, said the president of the organization’s board of directors.

Speaking Monday night at the City Council meeting, Ray Chaya, a BDC board member for nine years who is “terming out” next month, said Batavia’s positive, can-do message has resonated with regional and state economic development agencies. As a result, grants have been awarded to initiatives to the tune of more than $2 million.

“We’ve come to be a community of believers,” Chaya said, noting that the passing of resolutions by government boards, phone calls from local leaders to regional executives and media coverage were key factors in last week’s awarding of the $1.9 million Consolidated Funding Application grant by the Finger Lakes Regional Development Council for the Ellicott Station project.

He added that the BDC also expects to receive a $500,000 Restore NY grant for environmental remediation of the Santy’s/Della Penna site, and the developer, Savarino Cos. of Buffalo, is in line to receive federal new market tax credits “to help close the gap” and make the project worthwhile.

City Manager Jason Molino said the BDC is looking into “multiple funding sources to offset the cost,” including Brownfield cleanup tax credits and the Batavia Pathway to Prosperity fund – a partnership of the City of Batavia, Genesee County, Batavia City School District and Genesee County Economic Development Center.

“The Pathways to Prosperity addresses the anti-poverty issue and is a feather in the cap,” Molino said. “The way we were able to transfer the property as an LLC to the BDC and then to the developer is the first of its kind on several different levels … and that’s what has drawn attention to it.”

Chaya named seven businesses that participated in the BDC’s microenterprise grant program, which empowered the agency to piecemeal the distribution of $200,000 to qualifying entrepreneurs who participated in the program.

Those businesses are Hidden Door, Batavia Brewing Co., Gams Sweet & Savory, Teddy Bear Day Care, T-Shirts Etc., Amy’s Fluffy Friends and Trash Away. All of the businesses’ expenditures are closely monitored by the BDC and the state’s Office of Community Renewal, with milestones and metrics having to be met per grant regulations.

The Batavia Brewery Co./freshLAB project also has been boosted by several performance-based grants, Chaya said, namely a $500,000 Main Street anchor grant, $60,785 from the United States Department of Agriculture and a $100,000 National Grid Revitalization grant.

Additional tax credits could come if the building – which also will house market-rate apartments on the upper floors -- is put onto the National Register of Historic Place as sought by owners Matthew Gray and Matt Boyd.  

Chaya said that bidding on construction is taking place through Jan. 6 and work is expected to begin in late winter. The overall cost of this project is estimated at $1.5 million.

The city also received two other FLREDC grants -- $25,000 for the Downtown Batavia Healthy Living Campus’ feasibility study and $12,500 to the Batavia Business Improvement District for a Downtown Batavia Public Market Study.

Chaya also reported that an Empire State Development grant in the amount of $15,000 is being used to develop a plan for the Harvester Park subdivision.

The Batavia Development Corp. and Buffalo developer Samuel Savarino received the news they have been waiting for today when the Finger Lakes Regional Development Council announced the release of $1.9 million in funding for the Ellicott Station project on Ellicott Street in the City of Batavia.

“This is fantastic for Ellicott Station, phenomenal for the City of Batavia, but what is really great is that the governor (Andrew Cuomo) and the regional leaders believe that we can transform Batavia, and they’re ready to help us do that,” said Julie Pacatte, BDC coordinator.

The $1.9 million Consolidated Funding Application grant is the second-largest award of this round of funding in the Finger Lakes Region – surpassed only by the $2 million awarded to the Sibley’s project in Rochester.

Gov. Cuomo announced that more than $700 million in economic and community development funding was awarded today to the state’s 10 regional councils through Round VI of the Regional Economic Development Council initiative.

In the press release from the governor’s office, he said that “through the Regional Economic Development Councils, we have replaced the ‘one-size-fits-all’ approach to economic growth with a ‘ground-up’ strategy that focuses on cooperation and investing in regional assets to generate opportunity.

“By bringing together ideas from local government and community leaders with state resources, we are giving these councils the tools to create jobs and drive economic activity in their communities for generations to come.”

Rachael Tabelski, marketing director for the Genesee County Economic Development Center, applauded the news, adding that the support of FLREDC Co-Chairs Anne Kress and Danny Wegman gives the city a strategic edge.

“It’s a major, major project for downtown Batavia that is going to transform everything, and the backing of the regional co-chairs ensures that this project will happen, and happen on its full scale,” she said.

Other project awards coming to Genesee County include:

-- $150,000 to Sysco (Western NY Depot) to clear land and build a facility to house delivery management for distribution services;
-- $96,000 to Genesee County Chamber of Commerce (Haunted History Trail of NYS, 2017 initiatives) to conduct a conversion/economic impact study for the haunted history trail, the first and only statewide paranormal tourism trail in the United States;
-- $47,500 to Genesee County (Genesee County Housing Needs Assessment) to complete a housing needs study;
-- $50,000 to City of Batavia to complete a stormwater capital plan;
-- $25,000 to the City of Batavia (Downtown Batavia Healthy Living Campus) for a feasibility study for a comprehensive, multipurpose health campus downtown;
-- $12,500 to the Batavia Business Improvement District (Downtown Batavia Public Market Study) for an assessment and conceptual market master plan for sites in downtown Batavia.

Pacatte noted that the Healthy Living and Public Market grants are for areas within the Batavia Opportunity Area that her agency has been focusing on for redevelopment.

“Both initiatives are BOA-centric, and will improve the core – the civic center – of our county,” she said.

As far as Ellicott Station is concerned, three weeks ago Savarino provided an update to City Council, and specifically mentioned that the CFA grant that came through today along with a $500,000 Restore NY grant and new market tax credits were essential to making the project work.

Savarino’s plan is to convert the former Santy's Tire Sales and Soccio & Della Penna Construction sites a mixed-use, commercial/retail/residential complex.

The project is expected to cost around $17 million. 

Speaking from decades of experience in property redevelopment, Samuel Savarino, chief executive officer of Savarino Cos. of Buffalo, acknowledged the challenges involved in converting the former Santy's Tire Sales and Soccio & Della Penna Construction sites on Ellicott Street in the city into a successful commercial venture.

But he also said he is encouraged by the "great public support" locally and is hopeful that New York State comes through with the necessary grant funding to make Ellicott Station a reality.

Savarino, whose company was selected by the Batavia Development Corp. in the spring to revitalize the rundown, three-acre parcel in the city's Brownfield Opportunity Area, joined Julie Pacatte, BDC coordinator, and BDC Board members Ray Chaya and Mary Valle at Monday night's City Council meeting to update the governing body on the project's progress.

"We've been refining our plan, and after finding that one of the buildings on the site is unsafe, it will be demolished and is no longer part of our plans," said Savarino, who has spearheaded award-winning projects along Buffalo's waterfront.

However, he said, the main building on the Della Penna lot (phase 1 of the project) features "some unusual characteristics that will work well ... and will become the signature part of the development. Driving down Ellicott Street, you can't help but notice it."

Specifically, he said the Della Penna building that once was a transformer repair facility has room upstairs for a party area that looks out over the production floor.  He said he is "pleasantly surprised" that the building's shape, along with concrete beams and columns, will lend itself to a unique look and feel when completed.

Savarino said his company has been working with engineers and consultants in preparation of possible construction next spring. Plans are contingent on the awarding of an Empire State Development grant -- what Savarino called a "substantial contribution to close the gap" -- for the project, which is expected to cost around $17 million. He and Pacatte said they hope to hear from the ESD in December.

The developer also said that he has applied for new market tax credits to lessen the state's commitment to the project, noting that the fact that the site is in a highly distressed census tract and that Batavia is a rural community work in the project's favor.

He said the project likely will proceed in two phases.

"Della Penna is the first phase; Santy's is the second site," he said, adding that the building there also will come down. "That's the site that the city acquired through foreclosure after we were selected in the RFP process."

Savarino said the plan hasn't changed much from his original vision.

"We're still roughly consistent of what we originally proposed. We're using the existing building as a production brewery and restaurant. We've had some in-depth conversations with two established brewers, both of whom have a strong interest in the site -- I don't think that's an issue.

"We've talked to several commercial tenants for the space -- the two floors of commercial space that we have in both of the buildings. But the first phase would have 16 apartments and the second phase would have 16 apartments, for a total of 32. Commercial space on the first floor could be retail or it could just be commercial office. We've had an awful lot of interest from commercial office users and one bank in particular."

Samuel Savarino talks about the Ellicott Station project at Monday night's City Council meeting. Photo by Mike Pettinella.

City Council tonight (Oct. 11) unanimously passed a resolution supporting the redevelopment of Ellicott Station, a move that officials of the Batavia Development Corp. hope spurs Empire State Development to act favorably and quickly on the BDC's request for $2.4 million in grant funding for the project.

"We intend to send this resolution to the agencies (ESD and Finger Lakes Regional Economic Development Council) to show more support and solidarity," BDC Coordinator Julie Pacatte said.

Pacatte was referring to the collaboration among the City of Batavia, Genesee County, Batavia City School District and Genesee County Economic Development Center, which joined together to commit a percentage of payments in lieu of taxes (PILOTS) to a unique program known as Batavia Pathway to Prosperity.

BPP and anticipated capital grants from the ESD -- $1.9 million through the Consolidated Funding Application and another $500,000 from Restore NY -- have paved the way for Savarino Companies of Buffalo to commit to investing millions of dollars into turning the former Santy's Tire Sales and Soccio & Della Penna construction firm site on Ellicott Street into a vibrant entertainment/office/apartment complex.

The resolution is meant to "reiterate the importance of this $17 million investment in a highly distressed area of the city experiencing 32 percent poverty and nearly 7 percent unemployment," Pacatte said. "We urge New York State to enable us to implement the plan in which they sponsored."

The Ellicott Station project is listed as a Five-Year Pipeline Initiative by the FLREDC within its 2016 progress report and recommended priority projects, which focus on mixed-use development, poverty levels and leveraging private investment.

Pier Cipollone, a BDC board member and former City Councilman, said that "closing the gap" in funding by obtaining these grants must happen before Savarino Companies can put its plan into action.

"If we can get moving on this, then we can turn some of these other sites around," he said, noting that the BDC has identified four other areas in the city (City Centre Mall, United Memorial Medical Center/YMCA corridor, Creek Park behind Falleti Ice Arena and the Harvester Center) for redevelopment.

The four-page resolution traces the city's now seven-year effort to revitalize Batavia's Brownfield Opportunity Area. It emphasizes that both of these grants are "necessary to advance the Phase I component (envirnmental assessment, cleanup, engineering costs, etc.) of the Ellicott Station project and will be matched by substantial private equity investment and significant local resources through the BPP program."

City Manager Jason Molino said that Savarino Companies will be responsible for about 70 percent of the project's total cost.

Pacatte, in a memo to Molino, wrote that Ellicott Station will create arouind 145 temporary construction jobs in which Savarino has committed to hiring some local unemployed workers. When finished, she noted, the project should result in 160 permanent jobs earning $6 million annually, while generating $500,000 in downtown consumer retail demand and $335,000 in sales tax annually.

She added that total assessed value will increase thirtyfold, and that values of properties within a half mile will improve by 10 to 15 percent.

Pacatte said that Savarino Companies has lined up some tenants and prospects, and she expects an announcement to be made in the near future.  

In other developments, Council:

-- Received word from Molino that the city was one of 76 municipalities to receive an "Operation Keep Our Home" grant available through a settlement by the state's Attorney General. Municipalities with at least 5,000 people and a minimum of 100 vacant homes were eligible for the program.

Molino said the $66,500 award will be used to combat "zombie" and vacant properties along several fronts -- the use of foreclosure prevention counselors, hiring an MBA graduate assistant to collect data on vacant homes in the city, working with agencies such as Habitat for Humanity, marketing, purchase of computer and software to keep track of properties, and to revise city codes relating to neighborhoods.

-- Authorized eight transfers from the city's assigned fund balance to the following dedicated reserve funds for future purchases, renovations, repairs and obligations -- police capital equipment, fire capital equipment, public works capital equipment, Dwyer Stadium, public facilities capital, capital sidewalk reconstruction, administrative services equipment and software, and employee benefit accrued liability.

-- Approved an agreement with Wells Fargo that allows the city to hire a contractor to demolish the single-family residence at 23 Columbia Ave., which has been vacant for quite some time and has numerous code violations, and then receive reimbursement from Wells Fargo for all costs associatied with the demolition (estimated to be around $25,000). 

"Preferably we would like them (banks) to demolish these types of homes rather than us, but in this instance this may be quicker," Molino said.

Molino said the condemed property on Columbia Avenue is "outside the ordinary" and this method could be used again to put pressure on lending institutions to meet their responsibilities.

-- Extended a contract with Environmental Solutions (U.S.) Ltd. to continue its removal of alum sludge from the Wastewater Treatment Plant off Pearl Street, action that adds $400,000 to the cost but still keeps the project under the original budgeted amount of $2.1 million.

-- Approved, by a 7-1 count, with Rose Mary Christian dissenting, a resolution to submit a request for a NYS Department of Transportation grant to construct sidewalks, high-visibility crosswalks and handicapped ramps in the areas of UMMC, downtown, Batavia school properties, NYS School for the Blind and Austin, Centennial and MacArthur parks. Council agreed to pay 25 percent (5 percent more than required) of the cost to better its chances of receiving funding.

Christian said she voted against it because the proposal did not include funding for any sidewalks in her Sixth Ward.

-- Voted in favor of a lease agreement with Dent Neurologic Institute at 35-39 City Centre for 1,122 square feet of space at $16.50 per square foot -- or $1,851.30 per month -- for a year, with two six-month renewal options.

Molino said the lease agreement would act as a "placeholder until we have an idea of bigger development of the mall."

Dent is using about a fourth of the total space at 35-39 City Centre, which recently was foreclosed upon by the city due to delinquent property taxes. Molino said Dent's lease payments will cover all of the city's costs related to taxes, insurances and maintenance of the property.

Project organizers see the START-UP Genesee seminar series as a necessary starting point for prospective entrepreneurs to navigate what could become a complicated road to success.

But, ultimately, it is the funding component of this partnership among local and state agencies that will generate the fuel to enable new businesses to survive and thrive.

As reported on Tuesday in The Batavian, START-UP Genesee has been formed to assist all types of businesses from early stage planning to site selection, access to capital and product development or diversification.

The initiative will kick off with an open house at 3:30 p.m. Aug. 31 at the Harvester Center, 22 Masse Place, Batavia, and continue with six programs for entrepreneurs every other month starting in November.

The Batavia Development Corp. and the Genesee County Economic Development Center are two of the eight agencies that have come together to set START-UP Genesee in motion.

BDC Coordinator Julie Pacatte and GCEDC Marketing Director Rachael Tabelski believe the effort will produce results largely due to the current funding streams available to entrepreneurs.

“At the BDC, we primarily work with microenterprise – start-ups with five or fewer employees -- and we have had a lot of success with the 'Get Underway' grant program,” Pacatte said, noting that numerous start-ups have taken advantage of City of Batavia microenterprise grants.

Pacatte added that BDC directors are exploring programs that provide more programming, including mentorship and ongoing improvement strategies.

Tabelski touts the GCEDC’s commitment to entrepreneurship, calling it one of her employer’s three pillars of economic development, and she dismisses suggestions that the agency only doles out tax breaks to businesses.

“We administer loan funds, and can point someone in the direction of the Batavia Development Corporation or the Genesee County Chamber of Commerce for smaller ‘micro’ loans,” she said.

Both Pacatte and Tabelski have high praise for the START-UP NY program offered through Genesee Community College.

“As far as tax incentives, START-UP NY is basically a feeder program that helps (entrepreneurs) move in the right direction,” Pacatte said. “It’s a key component in Genesee County, thanks to the efforts of William Emm, (executive vice president of planning and institutional effectiveness), who is the architect of the GCC START-UP NY plan.”

Tabelski said that “entrepreneurship is the key to employing more people and a way to get tax incentives through START-UP NY at GCC.”

“The idea of START-UP Genesee is to find out if someone has an idea that could turn into a viable business plan and be eligible for space."

START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York State.  GCC has designated 50.6 acres of vacant land at the Batavia campus as well as 19,678 square feet of vacant space at the Dansville campus.

The college targets businesses in agribusiness, advanced manufacturing, technology, energy development (bio-digesters and advanced energy management systems) and agricultural research. For further information on the qualifications for the START-UP NY program and the application process, go to: http://startup-ny.com/

Additional grant funding is available through New York State’s Consolidated Funding Application and Empire State Development, and through programs such as 43 North in Buffalo and Hi-Tech Rochester’s Venture Challenge.

Tabelski said that Batavian Georgeann Carrubba, who came up with an invention to help those with ostomy bags, was “shepherded” by the GCEDC’s Innovation Zone, which provides access to “venture capital folks and enables businesses to scale up more quickly.”

In related developments:

Pacatte said that her agency has submitted grant requests to ESD for Ellicott Station remedial work, and received CFA funding last year to study the feasibility of subdividing the 20-acre core Harvester Park, encompassing parts of Harvester Avenue, Masse Place and Swan Street.

She said that Samuel Savarino, developer of Ellicott Station, is closing in on a couple of tenants – one to operate an entertainment/retail destination and the other two to lease office space. 

The Harvester Park plan will be revealed in the next 30 days, she said, adding that owners of the land on Swan Street that has been considered as a possible site for a new City of Batavia police headquarters, had been talking about developing the parcel “before the police conversation came up.”

Some of the collaborators that helped create the Batavia Pathways to Prosperity investment fund and other strategies to foster economic development in Genesee County are joining forces to launch a new project -- the START-UP Genesee "Think & Drink" Entrepreneurial Series.

Eight local and state agencies have teamed with Genesee County village business districts to offer the series, which kicks off on Wednesday, Aug. 31, with a networking event celebrating the Harvester Center's 57th anniversary.

The event will run from 3:30 to 5:30 p.m. at the Harvester Center, 22 Masse Place, Batavia. Those with hopes of starting their own businesses and others from the public are invited to attend the session, which will feature local food and beverage entrepreneurs.

Sponsors include Canandaigua National Corp., NYS Small Business Development Center, Mancuso Business Development Group, Batavia Development Corp., Genesee County Chamber of Commerce, Genesee County Economic Development Center and Genesee Community College and Batavia Improvement District.

According to a press release issued by the GCEDC, the START-UP Genesee network can assist all types of businesses from early stage planning to site selection, access to capital and product development or diversification.

Business programs in the "Think & Drink" series will be held every few months following the launch event.

The schedule of tours, all free of charge, is as follows:

-- November, Innovation Zone, Technology-based Start-Ups;
-- February 2017, FreshLAB, Food & Beverage Start-Ups;
-- April 2017, GCC, Mastering Your Business Plan;
-- June 2017, Village of Bergen, Main Street Businesses;
-- August 2017, The Harvester Center, Maker Spaces;
-- October  2017, Genesee County Chamber of Commerce, Tourism Start-Ups.

For more information call Rachael Tabelski at 585-343-4866 or by email rtabelski@gcedc.com.

A plan hatched by the City, the Batavia Development Corp. and the Genesee County Economic Development Center to redirect some money generated by economic development into brownfield area cleanup received the support Wednesday of the county's Ways and Means Committee.

The committee approval means the proposal will be voted on by the full County Legislature at its next meeting.

The plan, unique in the state, called Batavia Pathway to Prosperity, will create a fund from PILOT (payment in lieu of taxes) payments that can be used for environmental clean up on properties within the city's brownfield opportunity area, a 366-acre designation covering the city's core.

A PILOT provides a business undertaking local economic development (creating jobs, increasing the tax base, adding to local economic growth) with a break in taxes for the increase in assessed value on the property being developed. Typically, if a business puts a new building on vacant land or adds onto an existing building, the assessed value of the property will increase, which means higher property taxes paid to the city (town or village), school district and county. A PILOT reduces those taxes in exchange for payments to the taxing jurisdictions. The payments could be in the range of 70 percent of what the increase in taxes would have been without the PILOT. The property owner still pays 100 percent of the taxes on the original assessed value. PILOTs typically run for 10 years on a graduated scale, with property taxes due increasing every two years over the life of the PILOT.

The new program would redirect half of the PILOT payments from projects in the city to an investment fund (a PIF) that would be available to property owners in the future who wish to redevelopment brownfield properties and need assistance with the environmental cleanup.

"This creates a fund that gives the BDC and the EDC working together and providing collective oversight the opportunity to look at broad range investment opportunities," said Steve Hyde, CEO of the GCEDC. "(The projects) still have to be for the public good, but (the property owner) can turn around and maybe do some creative financing type of things to really move some property and get them redeveloped and start to heal the poverty and blight down in our core."

Marianne Clattenberg, now a legislator but a former City Council president, said the city has needed something like this for a long time, but had other problems to solve first before something forward-looking could be brought to the table.

"We knew going in we could never do this by ourselves, that we needed partners and we needed to have everybody on board and engaged to bring the city back to where it needs to be," Clattenberg said. 

County Manager Jay Gsell said a program like this could spark a renaissance in the city.

"The need is unique and this is the kind of structural financing that gives the adroitness necessary to having this kind of money available," Gsell said.

The committee also approved a city plan to provide tax relief on so-called zombie properties. The program would provide a PILOT-like tax abatement on the increase in assessed value of a home that is currently vacant and has been vacant for some time that a person buys, renovates and then lives in. While the abatement isn't available to an investor who buys a zombie house, fixes it up and then rents it out, the abatement could be available to the next owner if that same investor fixes it up and then sells it to an owner-occupant. 

There are 50 to 60 such zombie properties in the city, not all of which can be saved, but some retain some value and could be renovated. The property must be single family, or converted to a single-family residence.

Hyde said the two programs together are the sort of thing that can spur economic development in the city's core and attract the Millennials who will be taking jobs at STAMP (Alabama's Science and Technology Manufacturing Park) to the city.

Both Julie Pacatte, economic development director the Batavia Development Corp., and City Manager Jason Molino see a very bright horizon for the City of Batavia when they look five years down the road.

A lot of groundwork has been laid over the past couple of years to help transform Batavia's economy and make it a place where both Baby Boomers and Millennials will want to live, work and play.

"Five years from now we'll see a dramatic difference in the city of Batavia," Pacatte said. "I think we will be a community of choice for the Millennial Generation. We are a more diverse community. There will be confidence in investing in the city whether in your home, your own home improvements, or if it's investing in a property Downtown to attract business. I think there will be a dramatic transformation of the landscape."

The optimistic tone was struck during BDC's annual meeting, which was held in council members in City Hall.

And optimism is one of the key drivers of change and growth, Pacatte said during her presentation.

Molino shares the vision.

In fact, he predicts by the Summer of 2017, Downtown Batavia's skyline will be peppered with construction cranes.

"I think we're at the beginning of a renaissance for Batavia," Molino said. "I say that with one caveat, and that is we need to continue with the forward effort we've put forward in the past few years."

That includes improvements to infrastructure, such as sewers and sidewalks, reworking the zoning code through the general plan update process, supporting the BDC and focusing on brownfield redevelopment.

The city and BDC are feeling pretty good this week about a big step forward on one of its biggest projects, transforming the Santy Tire and Dellapenna properties from blighted eyesores into commercial redevelopment.

The BDC is taking over ownership of the property, a first step toward selling the parcels to private developers.

Pacatte said we should expect an announcement on what's coming within the next 30 to 60 days.

Molino is also proud of the City's Pathway to Prosperity Plan, the first of the kind in the state, uniting the city, the county, the school district, the BDC and GCEDC in an arrangement to use funds generated by PILOT payments to help offset the cost of brownfield redevelopment.

The city has designated 366 acres in the primary corridor as the Batavia Opportunity Area (or Brownfield Opportunity Area), with the ability to offer special incentives to developers willing to turn blighted properties into economically viable properties.

The BDC is the lead agency in that effort.

Besides the tone of optimism during Wednesday's meeting, the overriding theme was, ready or not, the Millennials are taking over.  

In the United States, there are now more Millennials than Baby Boomers and by 2020, Millennials will make up nearly half of the nation's workforce.

And it turns out, Millennials and Baby Boomers aren't all that far apart in their wants and aspirations, putting Batavia in a prime position to serve both.

Both cohorts want livable communities, ones that are affordable, accessible and walkable. While boomers are downsizing, Millennials are conscious of their impact on the planet; boomers seek affordable services, Millennials watch their spending because of college debt loads; Boomers have accumulated the wealth to enjoy community living, Millennials are urban-minded.

Some 64 percent of Millennials want to start their own businesses, Boomers have the experience to be mentors and the means to be buyers and investors.  Boomers are team players, Millennials are collaborative. 

Both are interested in building communities that are engaging and filled with entertainment opportunities. They are interested in communities that offer a sense of place.

Pacatte ended her presentation with three questions for audience members to ponder:

• Are we investing in place?
• Do you see value in building a community?
• How optimistic are you?

Two parcels of property that are part of the city's brownfield opportunity area are advancing in the redevelopment process.

The City Council approved resolutions Monday night that will make it possible for the Batavia Development Corp. to take over ownership in order to prepare the property for sale to a private developer.

The transfer is contingent on a successful tax foreclosure process.

Both properties, at 40-52 Ellicott St., the former Dellapenna property, and 56-70 Ellicott St., the former Santy Tire's location, along with other businesses, have been elligible for tax foreclosure for some time, but the city has let the properties sit in limbo to avoid becoming responsible for the expense of environmental cleanup.

City Manager Jason Moliono wouldn't confirm that property title transfer to BDC signals that Economic Development Coordinator Julie Pacette has identified a specific private owner for redevelopment of the properties, but the resolutions passed by the council indicate a developer is waiting in the wings.

The resolutions both say, "the BDC has agreed to accept title to said property and work towards executing agreements with a preferred developer for redeveloment of the site consistent with the accept Brownfield Opportunity Area Step 2 Nomination Plan ..."

The BOA covers all of the city's central corridor and is 366 acres. It affords an opportunity to provide developers with assistance in revitalizing abandoned, blighted and underused properties.

The BDC has been working for years to establish the designation, identify properties for redevelopment and market those properties to potential developers.

There's no information available yet on who the developer might be, what is planned for the property, or when the next steps will be announced.

Press release:

At a Special Meeting of the Batavia Development Corporation (BDC) early January, President Ray Chaya thanked fellow Board Member Gregg Torrey for serving eight years as a director of the City’s economic development agency. The BDC instituted term limits during Torrey’s tenure. He has represented City business development efforts since June 2007 and served many years as an officer of the organization.

The BDC also elected three new members:

· Mary Valle, second generation Valle Jewelers business owner, active Vibrant Batavia volunteer and former Business Improvement District director;

· Steve Pies, fourth generation Max Pies Furniture business owner and past Genesee County Chamber of Commerce Board president;

· Pier Cipollone, former City Councilman and past BDC Board president.

Fellow Board members include Ray Chaya, Susie Boyce, Peter Casey, Kathy Ferrara, Jay Sackett, Barb Shine and ex-officio member, City Manager Jason Molino. The Board meets the fourth Wednesday of each month at 7:30 a.m. in City Hall.

Matt Gray remembers the old J.J. Newberry's Downtown, with its creaky floors, dusty inventory and a lunch counter he would saddle up to next to his grandmother to enjoy a hot dog.

Now he owns that building, but his ambition far exceeds nostalgia. It's about revitalization and doing his part to bring vibrancy and economic growth back to his community.

Gray, along with partners Jon Mager and Matthew Boyd, will be the owners of the anchor tenant in an ambitious project backed by the Batavia Development Corp., Genesee County Economic Development Corporation, and Rural Development/USDA to help aspiring restaurant owners get a start in Downtown.

The partners are creating Batavia Brewing Company, a new microbrewery at 109 Main St., Batavia.

The location will also be known as freshLAB, a restaurant incubator where entrepreneurs with great ideas for unique menu items sourced mostly with local and regional ingredients can see if they can turn their food concepts into thriving businesses.

Mager said the ambition for the project is rooted in the fact that he and Gray grew up in Batavia, are businessmen in this community, are raising families here and want to see their community thrive.

"We wholeheartedly believe Batavia is a great place to live, work, play and raise a family," Mager said. "By joining the ranks of the many great places to eat and drink Downtown, we hope to be part of a complete and full resurgence and revitalization that is attracting people back to Downtown."

Gray said they picked a downtown location because that would generate the greatest economic impact, both for other restaurant and bar owners and for themselves.

"There were a lot of other pluses on a lot of other sites, including parking, but (what) it came down to, is we believe in the clustering effect," Gray said. "There are so many good restaurants and so much good nightlife already down in this area. Adding more to it is only going to make each one of us healthier. By going off on our own, we're going to have to fight uphill to trying to get people to come to us." 

Mager and Gray, who got his start in food business ownership with Matty's Pizzeria and currently own's Alex's Place along with restaurants in Southern states, first started talking about opening a brewery in 2013. In 2013, Mager completed training with the American Brewers Guild. 

At the same time, Julie Pacatte and the BDC board were looking at all this data saying too much restaurant and bar spending by local residents -- some $12 million -- was being spent outside of Batavia. People wanted more food choices locally. And there were a number of people who would come to the BDC for assistance in starting restaurants, but just didn't have the wherewith all to pull it off. So this incubator idea, which has been successful in other markets, started forming.

Pacatte heard about Mager and Gray's ambitions and recognized the possibility of a partnership.

"We want those dollars to say here," Pacatte said. "We want a reason for people to be eating and drinking in Downtown Batavia, more reason to do that. We want to offer a product that really ties our commerce, our downtown businesses to our agriculture community."

In a survey, the vast majority of respondents said they want healthier food choices in Batavia, they want more ethnic food (Millennials especially, marketing data shows, go for Far Eastern cuisines and spicier choices), and diners want more seafood.

"We're hoping that in this concept and in this project, that we're able to draw some of the folks in who can create some of those plates and meals and sandwiches or salads, that will be able to invent those kinds of meals and lunches and dinners and breakfasts here in Batavia," Pacatte said.

Rural Development is kicking in more than $67,000 in grants to provide equipment and furnishings for the "dining hall" element of the facility, that will be a shared space between the brewery and the food vendors. 

Steve Hyde, CEO of GCEDC, praised Gray and Mager for their foresight and willingness to take a risk, as entrepreneurs, to start a new business concept in their own community that will help their own community. Batavia is on the rebound, Hyde said.

"We have the innovation economy in our community now, higher-paying jobs, bigger-paying jobs, so our kids (can) stay here, come back home, and guess what, it makes this place a great place live, work and play and opportunities like this are going to make this happen even more," Hyde said. "It's really a great way to shine up the apple here in the city."

He said Mager and Gray are visionaries.

"It's so rewarding to us to have our local guys step up to the plate, invest in their community, and do what they're good at, 'cause this isn't new news for these guys," Hyde said. "This is right in their wheelhouse and they'll make it a great success."

John Deleo and Kathy Briggs had one word for those who think the City of Batavia should invest in its future: No.

On a pair of resolutions aimed at improving the quality of life and business climate in Batavia, Deleo and Briggs steadfast stalwarts in opposition, decried the expenditure of public money on the projects.

Each resolution passed by votes of 7-2.

The resolutions passed by the council extend the economic development services agreement for two years with Batavia Development Corp. and provide Vibrant Batavia with two years to become self-sustaining.

There was one growth-related measure that garnered yes votes from Deleo and Briggs. Deleo made a motion, seconded by Briggs, to eliminate the assistant city manager position.

The motion failed 2-7.

Councilwoman Rose Mary Christian, outspoken as always, extolled the virtues of economic development and the work of Vibrant Batavia.

"We need all the development we can get," Christian said. "We need all the revenue, we need the sales base, we need everything we can get. We need everything working this year at this time because if we don't go forward, we're going to go backwards. We're going to be in a hole and we're never going to get out."

Prior to the meeting, council members received a memo from City Manager Jason Molino called "Budget Sustainability," which made the case for the city investing in economic development and neighborhoods.

For the past several weeks, budget discussions have been dominated by voices advocating for slashing in the three areas of city spending intended to help the city grow: The assistant city manager position, the BDC and Vibrant Batavia.

Molino's memo argued that without investment in growth, Batavia will be doomed to decline.

"Public revenue needs an employed community, so the right question is not necessarily where should we be trimming the City workforce budget, but rather, the right question is: Are City resources optimally structured to reposition Batavia as a great place to raise a family, start and operate a profitable business, and in general, appeal to families," wrote Molino.

Pierluigi Cipollone, a small businessman, argued in favor of investment over retrenchment. 

"We've got to make an investment," Cipollone said. "Mr. Molino sent out a memo talking to the revenue side of the profit and loss of the balance sheet. We need to invest to get what we want for Batavia. In the old days, we had civic groups that did a lot of what we want, but those civic groups have gone away for the most part. We need to get some of that back. When the pride returns, businesses will return."

Deleo said that he was both being responsive to his constituents and standing by the cost-cutting promises of his campaign by opposing the growth initiatives. 

It's not the job of government, he said, to invest in economic development.

"We're going to be leaner," Deleo said. "We're not going to reach into the pockets of our poor senior residents."

Briggs said she attended last week's annual luncheon for Genesee County Economic Development Center and came away impressed by the economic development efforts of the local agency.

"They're bringing business into the county, and Batavia is part of Genesee County," Briggs said. "I'm like, OK, GCEDC seems to be on track. That's what I gathered from that meeting. We do have somebody who is going to do the job of economic development, GCEDC."

Other council members pointed out that the focus of GCEDC is something that is completely different from the BDC. The BDC is focused on the city, which includes mostly brownfield development demands. GCEDC handles the entire county and most of its developments are greenfields outside of city limits.

Briggs also mentioned that the city is served by the Business Improvement District, but Councilman John Canale pointed out that BID works strictly Downtown, whereas the BDC serves the entire city.

The funding approved for Vibrant Batavia -- $45,000 for one year and a smaller amount in year two -- also comes from a different pot of money than originally proposed. Rather than being drawn from reserve funding, a portion of the city's revenue share from Batavia Downs will be used to back the nascent community booster group.

The group will also be asked to pay for a new $10,000 slide in Austin Park by donating $5,000 back to the city and raising the remaining $5,000.

While the resolutions for the BDC and Vibrant Batavia assume two-year commitments for the city, Molino, upon questioning by council members, said the council will have the option to reduce or eliminate funding next year by passing another resolution.

It takes money to run a city, and economic growth is what allows a city to provide services for its resident, City Manager Jason Molino believes.

As the City Council wraps up its 2015-16 spending review, Molino is hoping council members will take some time for a serious and in-depth discussion of the revenue side of the budget picture.

"The revenue side of the budget needs focus and we need to understand how to grow that so we enhance and sustain the local economy so that we can provide quality services to residents," Molino said in an interview today. "To sustain a budget we need to ensure a consistent and steady revenue stream. This means the tax base is growing and people have more disposable income."

Molino has written a memo for council members titled "Budget Sustainability (pdf)." It lays out the case for ensuring the city takes steps to improve the economic health of Batavia.

The budget discussion so far has focused mainly on cost containment. The council has taken little time to focus on revenue, Molino says in the memo, but the reason the budget reflects a $250,000 reduction in spending isn't because of cost containment goals. It's because of anticipated declines in revenue.  The city is being forced by local economics to cut spending.

That should give council pause as it considers how to handle programs meant to improve the economic vitality of Batavia, such as the Batavia Development Corp. and Vibrant Batavia.

"Public revenue needs an employed community, so the right question is not necessarily where should we be trimming the City workforce budget, but rather, the right question is: Are City resources optimally structured to reposition Batavia as a great place to raise a family, start and operate a profitable business, and in general, appeal to families," Molino writes in the memo.

There are troubling signs in Batavia's economic outlook, Molino notes.

• The city's taxable assessed value of property is not growing;
• Median family income is below average and poverty is high, according to Moody's Investor Services;
• Three of the city's six census blocks are classified "highly distressed areas";
• Five of the city's six census blocks are deemed "low-income."

"A balanced approach to the city budget needs to include strong initiatives that will provide cost containment, but also strategic direction that will improve the quality of life," Molino writes. "Growth in the tax base and resident income are the lifeblood to supporting municipal services, as well as improved quality of life for City residents. All of our focus must be on retaining our households and repositioning Batavia in the coming years to attract more households and businesses."

There are those who believe it's not the role of government to "create jobs" or focus on economic growth. Molino disagrees.

"If you look at the past 10 years, the amount of economic growth, the big job growth, has been the result of public-private partnerships," Molino said. "The ag park, seven years in the making, is the first industrial development in Genesee County in the last 50 years. That came about because of cooperation between the city, county and town, all of us working together."

A local government that is focused on streamlining the process and marketing a community's assets is going to have more success than one that doesn't, Molino said.

"I think the attitude needs to be what are the reasons we should be doing this and not what are the reasons we shouldn't be doing it," Molino said. "It's the responsibility of a municipal government to reposition the community. If you're completely absent from funding economic growth, the community is going to be absent from opportunities for economic growth."

The city's budget is roughly $16 million and that spending, which provides all of the municipal services residents have come to expect from their local government, is entirely dependent on how well the local economy does. Without investment, not only is growth difficult, but a precipitous decline is a real possibility.

While there's no portion of the property tax levy going into funding Vibrant Batavia or the Batavia Development Corp., the amount of money needed to keep those growth projects going is less than 2 percent of the city's planned spending.

"Sure, we can reduce spending by another 10 percent, but if you don't have a vibrant community and a vibrant business base, all you're going to have is a more depressed Batavia with less capacity to provide services to residents," Molino said.

If you've downloaded the Reacht App for your smart phone, at some point within the next day, we'll ask you this poll question: Should the city fund economic growth initiatives? To download the app, click here. Those who download it will be eiligible for a chance to win a $5 gift card from Southside Deli.