Business

John Pontillo says he has tried doing everything he can to save Pontillo's on East Main Street in Batavia.

So far, all of his offers to buy the building and the business have been rejected. He doesn't know why.

"I offered a solution that gave the family business a chance to reopen and keep it in the family," John Pontillo said this afternoon. "It could be open right now. I made an offer that would have allowed us to take care of all our creditors. Bankers looked at it and real estate people looked at it and business people looked at it and all said, 'John, this is a good offer.'

"It's very frustrating. I don't know why it was rejected."

The landmark Pontillo's, which Sam Pontillo founded in 1947, shut down in November, with a sign appearing in the parking lot saying it was closed for remodeling. It turned out, however, that the business owed more than $112,000 in back taxes.

The brothers were soon in court trying to settle estate and debt issues and who would run the business.

And the fate of Pontillo's has been tied up in court since.

"We all grew up in this business," John said. "I would like to keep it in the family."

A for-sale sign appeared on Pontillo's yesterday about 4 p.m., but John is skeptical that the business and building can be sold before creditors foreclose on the property. He fears if his offer isn't accepted before foreclosure, there will be no more Pontillo's in Batavia -- not the family business his parents nutured into a regionally renowned destination for pizza and pasta.

As local restaurateur Sean Valdes noted in a comment yesterday, "This will be a hard building to sell as a restaurant. The overhead will be a challenge."

We have a call into Sam Pontillo seeking his comment on the situation.

This is a reader-submitted photo of a for-sale sign on the Pontillo's building on E. Main Street in Batavia. A caller informs us the sign was placed on the building at 4 p.m. We're working on getting more information.

Paul Pontillo, of Pontillo's Pizza in Batavia, is accused of writing bad checks from a business account.

The alleged bad checks were written in 2008.

The 53-year-old Pontillo was arraigned in City of Batavia Court yesterday and released on his own recognizance.

Previously:

• State says: Pontillo's Pizza in Batavia owes more than $112k in back taxes
• Pontillo brother wants his name cleared of blame for tax problem
• Pontillo's brothers may head to court
• Batavia Daily News Friday: Pontillo's reopening soon doesn't look good
• Pontillo's: Open for Delivery

The city's application for a $2.5 million grant to help spark redevelopment of Masse Gateway (part of the Harvester Center complex) has been reduced to $1.5 million in the final award.

The city received word today that the funds will be released to the City, according to The Batavian's news partner WBTA.

City Manager Jason Molino told WBTA that the RestoreNY funds were intended to begin demolition and reconstruction of Masse Place.

"It's our hope that this will be the beginning of opportunities to develop that former industrial site into some more commercial and light industrial locations for businesses and hopefully increase jobs in the area," Molino said.

UPDATE: City Council President Charlie Mallow issued this statement this afternoon:

After decades of political inaction and stonewalling, our city has finally taken the first step forward to rebuild its decaying center. This could not have been possible without our City Manager and his staff. Their hard work and determination has brought millions of dollars in grants, as well as financial stability to our community over the last two years. I also want to thank Mr. Mancuso for believing in and investing in our city. Batavia can only prosper when business people like Mr. Mancuso are willing to take a chance and invest their own hard earned money into our community. I would like to give a special thanks to Governor Patterson and his staff for taking the time to understand the needs of our city and ensuring that Batavia receives its share of federal and state dollars to help stimulate our local economy.

Previous Masse Gateway Project coverage.

Scott and Lynn Garlock and Rachel Bradt opened their new deli, Kravings, in the Valu Plaza on West Main Street in Batavia this week.  The Garlock's previously owned and operated Grugnale's Italian Market & Deli on Jackson Street.

Judging from the pictures Ken Mislter posted to the Facebook page for Next Level Fitness, he and his workers are making good progress toward getting his downtown gym opened.  Mistler posted 15 new pictures showing the finishing touches being put into place.  No word on when he expects to open.

I wish somebody had tipped us to the new grocery store opening in Pavilion.

It's the kind of local entrepreneur story I like -- seeing a need, seeing an opportunity and taking action.

The store is being opened by Jeff and Vicki Kingdon, a Pavilion couple with no prior grocery store experience. 

And it raises the question: If an entrepreneur is willing to take a chance and open a grocery store in Pavilion, why can't somebody do the same thing in Downtown Batavia?

There's some great retail space vacant downtown. There's no reason for it to remain empty.

There's a new enterprise in the former Pepsi-Cola Bottling Co.'s distribution site in Batavia, which was based in the Crickler Business Building. SolarX now occupies this property, located at 319 W. Main St., as its primary distribution center.

SolarX sunglasses and ornaments are sold in mall kiosks nationwide.

Ben Mancuso, managing director at Chas. Mancuso & Son, Inc., represented both sides of the transaction.

"We have repositioned the facitily as a full-service business center," Mancuso said, "since the transition we have signed deals (with) 35,000 ft. of warehouse/distribution space and 4,000 ft. of executive office suites.

Tenants share a receptionist, conference rooms and lunch rooms. Given the current climate, we are pleased with the activity and very happy to have SolarX operating in Western New York."

A Canadian-based coffee chain is planning a location on Court Street with a "European style" formula, and the company is getting tax breaks that helped entice it to Batavia, according to an announcement by GCEDC today.

Coffee Culture stands to save $37,200 in taxes on its new equipment and building improvements to 6 Court St., and the company is also seeking property tax exemptions on the increased value the remodeled property will garner.

It's a program, according to GCEDC's Chad Zambito, that is available to any business, local or out of the area, that is investing at least $50,000 in its start up.

Ken Mistler, who is opening a coffee shop at Main and Jackson, declined the same assistance primarily because the timing of the process did not match Mistler's plans, Zambito said. Mistler was unavailable for comment this afternoon.

Coffee Culture plans to spend $330,000 to renovate the 2,500-square-foot location and turn it into a "high end" cafe and eatery. Initially, the business will be corporate-operated, but will be available to a potential franchise operator. It will offer free wi-fi, a plasma TV and meeting space.

Besides gourmet coffee, the chain offers breakfast and lunch sandwiches and desserts.

Zambito gave full credit to Don Burkel at the BID for getting GCEDC involved in the process of recruiting Coffee Culture to Batavia.

"We're losing a hundred jobs -- and that's difficult in any day and age," said Chris Suozzi, senior vice president of business development at Genesee County Economic Development Center. "We're very discouraged.

"We offered to do what we could to change their minds. But there are not a lot of tools at our disposal. It's a leased facility (Pioneer's Mill Street Offices). The good news is that Pioneer invested $2 million in it and it's now Class A grade space.

"We're very hopeful we can back fill this space. We've reached out to our marketing partners, who give us tips about companies who might be interested in a space this size."

It's set up as "back office" space and is equipped as a call center. It has 13,500 square feet of renovated space on the ground floor and another 8,500 square feet of unfinished space on the second floor.

GCEDC sold the building to Scott Harris late last year. He's the owner of a door company called Millworks Solutions and, Suozzi said, Harris knew Pioneer was leasing the building on a year-to-year basis. Later this year, Pioneer's lease would have been up for renewal.

Even though Harris will have lots of empty space for awhile, Suozzi said it's prime space, thanks to Pioneer.

Pioneer Credit Recovery's spokesman Rick Castellano wrote us email clarifying the taxpayers' money it got.

It says "...Pioneer only received economic incentives for the commitments that we met in Batavia. No incentives were received for the project to construct a permanent site for the company’s work on the IRS Private Debt Collection Program.

"...The $350,000 loan Pioneer received was repaid. We did not receive any of the grant money for (a) new facility."

The repaid loan was used to upgrade Pioneer's Mill Street offices.

Furthermore, although Pioneer was awarded a great deal more money as part of its contract, the company never got it. That's because the plan to expand and build a new facility was not viable after the government cut the program in which private firms could collect some IRS debts.

You'd think a debt-collection agency would be in high cotton these days, what with the economic downturn and all.

Not so, apparently with a Batavia business that duns people for money. Pioneer Credit Recovery, Inc., located at 1 Mills St., suite 200, is shutting its doors, according to workers there.

We are told by sources that employees were called into a meeting at noon and informed that the Batavia office was being shut down but that employees would be given an opportunity to transfer to Pioneer's Perry or Arcade office.

So far, we haven't heard from the bosses (we've placed four calls to the corporate headquarters) on details of the announced shutdown or how many employees will be affected. Ditto the reason behind the move.

Dan Fischer at WBTA has also tried calling Pioneer's headquarters and he spoke to a PR person who said she couldn't confirm nor deny the shutdown.

Batavia is just one branch of Pioneer offices located in New York, New Jersey and Pennsylvania. According to its Web site, it's the largest private employer in Wyoming County and is based in Arcade. Pioneer was established in 1980 and has about 1,400 employees in Western New York.

Pioneer is a subsidiary of Sallie Mae's Asset Performance Group Division. Its growth over the past few years stems in no small part from legislation passed a few years ago which allowed private companies to contract with the Internal Revenue Service to collect debts.

The company expanded into Genesee County in 2004, with much fanfare from local business leaders and politicos. It was widely regarded as a "shot in the arm" for job growth here.

Christine Fix, then-president of the Batavia City Council, said at the time, according to an old Pioneer press release:

"Pioneer Credit Recovery's selection of the Greater Batavia Area for its expansion represents a tremendous boost to the local economy and spotlights the collaborative efforts in economic development that are taking place in Genesee County and the City of Batavia. The City of Batavia is appreciative of Pioneer Credit Recovery's confidence in our future and welcomes them to our community."

The Batavia project was tagged at $3.8 million, with $550,000 coming from Empire State Development Funds and $750,000 from the governor's Office for Small Cities program. Pioneer pledged to create 200 jobs initially and a couple hundred more regionally in the not-too-distant future.

Howard Owens contributed to this post.

The Oatka Festival in Le Roy yesterday may have been the place for all the fun, but the former Creekside Inn -- soon to be the Creekside Tavern & Inn -- was where you heard all the buzz.

The site of many grand times, and no small bit of history, was jammed with people looking over what Bill Farmer and his son are doing to the rustic stone building set against the falls of Oatka Creek.

Farmer is a man passionate about restoration, having put a whole career into working on some of the landmark restoration projects in Rochester. The Creekside project was supposed to be a hobby project, but has become Farmer's full-time avocation. 

For those who think entrepreneurs won't invest in Genesee County, Farmer will have sunk more than $1 million into the project by the time the restaurant and tavern opens next spring.

I spent at least 30 minutes just chatting with Farmer.  He's passionate about the project and believes it will become a destination point, drawing diners and beer lovers from Buffalo and Rochester to a village that has seen better days.  Farmer believes, and I think he's right, the Creekside restoration could spark interest from other developers in the village, which he thinks is one of the great undiscovered villages in WNY. 

The Village of Le Roy is well located, with some great older buildings and plenty of local history to be a draw for shoppers and diners from all over the region.  It's great to see an entrepreneur like Farmer take such a huge step to help save one great building and hopefully spark a new economic era for Le Roy.