Business

You can't brew beer without malt, which is something Ted Hawley thinks legislators forgot about when they passed a farm brewing bill last year that will eventually require ales and lagers  labeled "New York Beer" to contain 90 percent locally grown ingredients.

"They just thought they could grow barley in New York," Hawley said. "They didn't know there was another step, which is malting. It has to be malted before you use it in a brew. So it was kind of interesting that they put this huge amount of effort into requiring 90 percent ingredients from New York, but there's no way it can be produced with 90 percent ingredients."

The timing of the bill was fortuitous for Ted and Patricia Hawley, who started planning a year earlier to open a malt house on their farm off Bank Street Road, Batavia.

It will be the only malt house in New York, though the Hawleys are sure others are coming with anticipation of a craft brew boom in the state thanks to the new rules.

The farm beer license created by the bill is modeled after the winery license, which requires local ingredients and allows for tastings, on-site sales, bigger production runs and statewide distribution.

The Hawleys, like the bill's supporters, envision beer trails -- like wine trails -- and a new branch of agri-tourism throughout Central and Western New York, with hopefully the Hawley's malt house, and Batavia, right on the map.

The Hawleys are never afraid to dream big, and asked about the future of craft beer in Batavia, Patty shared a vision of microbreweries being drawn to the area.

"If you look at the larger picture, it would be really great if we could encourage microbrewers to come in, who are largely young, to set down roots, raise their families here, to change the landscape of what Genesee County looks like," Patty said. "It would be very cool to bring in that demographic, who then attract others with that whole artisanal mindset."

The Hawleys have no immediate plans to brew beers themselves, though they imagine selling beer right on their farm that's created by other microbrewers using Hawley malts.

It's almost a matter of coincidence that the Hawleys came into the malting business.

Living local is important to the Hawleys and they also have a strong interest in organic products (Patty Hawley owns Fountain of Youth Organics in Brockport), so two years ago, Ted went to a conference to learn more about growing organic grains for commercial bakeries.

"We were thinking that we were going to grow some organic grains on a little bit of land that we have for the baking industry, which is another kind of booming initiative," Patty said. "At this conference, there was one brief mention, like a sentence or two, if there were any entrepreneurs out there, malt is needed and there are no malt houses. Initially we weren't thinking in that direction."

Ted started researching the idea and saw it as a great opportunity for a new business venture even before the farm bill passed.

Since then, he's been learning everything he can about malting and grains, attending conferences, taking workshops, going to seminars.

"About 100 yeas ago, New York State used to be the largest producer of barley, the largest producer of malt, the largest producer of hops in the whole country," Ted said. "Some fungus came in and kind of knocked it down a little because of the farming practices and repetitive planting and (the state) never recovered after Prohibition."

Hawley just returned from the Canadian Malting Barley Technical Center, where he found himself sitting next to representatives from the largest breweries in the world.

The center, he said, can create any kind of climate in the world. They grow many varieties of barely in different conditions and then malt the barley in small batches and brew beer to test the results.

Not all barley types grow equally well in all climates and since malt varieties of barley haven't been grown in New York in nearly 100 years, Hawley is on a search to find the best barley varieties to grow in Genesee County.

To get their malting operation off the ground, the Hawleys are growing barley on 43 acres in Byron (top photo) and planted a variety that is used commonly for malting. But Ted also has a field in Le Roy where he's growing 23 varieties of barley in cooperation with researchers from Cornell.

"A variety you grow out in the Midwest is not going to grow the same here," Ted said. "We've got to see what grows here and thrives and keeps the proteins down and the enzymes up, which is different than feed-grade barley, which is protein high, enzymes low, and that's what's been planted here the last 100 years."

The Hawley malt house will produce a variety of artisanal malts based on the varieties of barley and other grains they find grow best in Genesee County.

Already, some 50 brewers have expressed an interest in Hawley malts, from some larger craft brewers to guys still brewing private stock in a garage, Ted said.

The passage of the bill also created another opportunity for the Hawleys. They were able to apply for and receive a $117,000 state grant, which allowed them to immediately double the size of their operation.

Eventually, Ted believes the Hawley house will produce 150 tons of malt a year, but he's starting out small -- 1,000 pounds a week (the 43 acres in Byron will yield 43 to 50 tons of malt).

"This is all new, so I need to feel comfortable doing this," Ted said. "It's quite an intricate process."

There is no limit to the kinds of recipes brewers can dream up for beer and the Hawleys think that creative opportunity will help fuel a craft beer boom in New York and that brewers are ready for locally produced malts unique to New York.

"This craft brewing industry is phenomenal," Ted said. "There's no rules. I mean, there could be up to 30 ingredients in brews, from nuts and berries to honey, to apples. There's no rules and there are some great craft brews that are being processed right now in people's garages. This farm brewing bill will offer them an opportunity to open up larger and sell their brews."

There's a new energy at Stafford Country Club says club President Marc Staley, with more activities for families and improvements to the golf course that keep it interesting but also make it more playable for those who aren't long hitters.

Stafford is in its 91st year and has had good times and bad times, Staley said, but things seem to be on an upswing these days.

"We try to make sure people come out here and enjoy themselves, that's number one," Staley said. "We have a top-notch course that's playable, a tremendous outdoor pool -- the largest outdoor pool in Genesee County -- a fish pond, bocce ball, tennis, sledding in the winter, dining -- there's a lot of things that are very family friendly about the place."

Stafford, being a private club, has the reputation, of course, of being elitist and stodgy. That might have been true at one time, Staley said, but that was then and this is now. There are more women members and more children around.

"We're working hard to get the word out as a board that this isn't some stuffy place, not some place over in Stafford where only rich people go and hang out and smoke cigars," Staley said. "I think it had that feel to it for many years, and I think by design. A lot of members liked that persona, but times have changed."

It's hard to dispel the myth, according to Staley, because the club's charter prohibits it from spending money on marketing.

The club also can't advertise its membership fees, which are considerably lower than one might expect and for avid golfers as affordable, at least, as playing open-to-the-public courses on a weekly basis.

"When people contact us, they're typically shocked that there's no initiation fee and that there's a dues structure that's payable over 10 months," Staley said. "For a family that's playing 30 or 40 rounds of golf a summer, whose husband, wife and kids are playing, it is every bit as affordable as playing those rounds on a public course where you're paying greens fees and renting a cart every single time. Every time you go, it's a hundred or hundred and twenty bucks if you take a family."

An annual full family membership with unlimited golf is a bit over $3,000, plus members are obligated to spend at least $600 a year on food and drinks, which helps ensure the club can afford to keep staff on its payroll. 

There are also tiers of membership for people who don't play as much golf, or don't play golf at all. A social membership (you can still pay greens fees for up to three rounds a season) is $600. That gets you unlimited access to the clubhouse, pool, two clay tennis courts and all social events.

In recent years, the number of social memberships dropped off, Staley said, but the board is working at incorporating more social events into the calendar to bring some of those members back.

Staley said his experience is typical of many of the family members -- he joined when he was single and 28. Back then, it was all about golf. Now he's married with two young children. His wife golfs, but the family spends a lot of time at the pool (which is has its own food and beverage service) and participating in family events, such as scavenger hunts and family meals.

Six times a year the Staleys participate in the club's "Nine and Dine" event, which puts two couples in a foursome for a best-ball tournament and then the players enjoy a meal together.

It's a great way, he said, for members to meet each other and get to know each other better.

One of the big social events, Staley said, is the annual bocce ball tournament. It's a packed house with an Italian buffet that night.

The big annual events are the club's invitational golf tournament, in which members must invite a guest, and the fall tournament, in which members can play each other. The tournaments tend to be packed, Staley said, and even attract galleries who follow the play.

The course opened in 1922 and was designed by Walter Travis, a renowned course designer who had already built several beautiful courses in the Northeast, including Orchard Park, Look Out Point and Cherry Hill.

In the middle part of the century, some of the Travis-designed features were lost and the club has been working over the past 15 years to bring those features back and to make other improvements to the course, Staley said.

An example at Stafford is shaving the grass shorter on the aprons of the greens. Most of the greens have slopes and mounds around them that can make hitting a green more challenging, but also give the golfer more creative options for pitching, chipping and putting.

"During times of economic stress, maintenance decisions get made, not just at our course, but other courses, too," Staley said. "If you look at some of the history of the courses in Rochester that have been around for years, they change. You really have to make a concerted effort to put them back to play the way they were designed. Only then can you see the brilliance of the designer."

One of the projects under way at Stafford is to build more forward-placed tee boxes. It's part of the USGA's "Play it Forward" program. With more young golfers, more women and more seniors, golf courses need to become more playable.

"When you come out here you want to enjoy yourself," Staley said. "You don't want to get your butt kicked for four hours."

There have also been trees removed that weren't part of the original Travis design, or because they've become diseased; and there has also been a major renovation of the bunkers.

There's a whole, multi-year master plan for improvements.

"It will take us a lot of years and a lot of money to do it, but we're trying to stay committed as a board to doing something to move it along, move it in the right direction," Staley said.

Staley thinks a lot of people in Genesee County simply aren't aware of what Stafford has to offer or what a unique opportunity Stafford offers to golfers who would enjoy a private club membership. He said board members hope they can start to change the Club's image.

"If you picked Stafford up and dropped it in the middle of Perinton, we have a different story here," Staley said. "You would be paying $15,000 or $20,000 up front just to get in the door, but we not here. That's the beauty of this place. It's sort out in the middle of nowhere, and for people who live in Le Roy or in Batavia, you really have a gem out here, a beauty of a place."

On the Web: Stafford Country Club.

House Republicans are staunchly opposed to one element of an immigration reform bill -- a path to citizenship -- that some supporters think is critical to its passage, Rep. Chris Collins said today during an event at Post Farms in Elba.

"As a country that was founded on the rule of law, the first action that these adults took in coming into this country was to break the law, so a pathway to citizenship will not come out the House Republicans," Collins said.

The immigration reform bill is the result of hundreds of hours of negotiations between farmers and the farm labor community, which wants to see people who have been working the the United States for years, although illegally, have a chance to become citizens.

While Collins doesn't support allowing such individuals to become citizens, he said he doesn't see a problem with allowing them to obtain permanent work status.

"Call it a blue card," Collins said. "We're fine with making it so that workers who are now here illegally are stay here legally. Make it so that they can go home and visit their families and come back and we know who they are and where they are and that they pay taxes."

Dean Norton (left in photo), said that if the House Republicans can't be brought into the fold, we could wind up with two versions of immigration bills that will go to conference committee. Losing the path to citizenship will be a disappointment to some members of the coalition who worked on the bill, but he thinks when it comes down to it, both sides need some sort of reform to pass.

"I've got to believe in my heart that once we get people sitting down at the table, they won't do anything to scuttle reform," Norton said. "It's too important to the country and to our food supply."

Collins did say he supports citizenship for the children of workers here illegally.

"This is the country they know and love," Collins said.

Dancing Derrick was on East Main Street today, in front of T-Shirts Etc.

Press release:

The Genesee County Economic Development Center (GCEDC) approved four projects at its June board meeting. They total approximately $2 million in investments as well as the retention of 91 jobs and the creation of 22 new jobs.

“All of the projects being considered by the board are investments in infrastructure which means the companies seeking benefits intend to be here for the long term,” said Steve Hyde, GCEDC president and CEO. “Companies typically do not invest in facilities and infrastructure without long-term plans so it is great to see this commitment to our region.”

Mega Properties, Inc., (Koolatron) is a Canadian company that manufactures, markets and distributes various portable thermoelectric cooler parts and components. The company is proposing to invest $775,000 in its operations that would retain 11 jobs and create six new jobs. Because the company is seeking more than $100,000 in incentives – in this case $190,000 – a public hearing must be scheduled.

Imagination Industries is seeking to build a 7,015-square-foot facility at 8240 Buffalo Road in the Town of Bergen. The multiuse facility will house an indoor firing range, training center, gunsmith services and a laser engraving business. The company plans to invest nearly $400,000 that would create 10 new jobs.  The project is allowable under state retail restrictions as the purpose is to make available services which would not be, but for the project, “reasonably accessible” to residents of the municipality where the project is located.  

The company is seeking a sales tax exemption of $19,970, a mortgage tax exemption of $3,750 and a property tax abatement of $63,195. The Board found that the project meets the goods and services retail clause in order to approve the application.

Reinhart Enterprises operates a 25,720-square-foot multi-commercial tenant facility on Liberty Street in Batavia. Due to flooding this past year, 4500 square feet of space was vacated. The company is looking to improve its facility and is planning a $206,000 capital investment for drainage and parking lot improvements to enhance the property for current and prospective office and corporate tenants. The company is seeking a sales tax exemption of $9,888. The investment would create three new jobs and retain 80.

Jackson Square LLC, the former Cars Warehouse which was built around 1880 in the area of the city known as Jackson Square, is proposing to convert the former structure into a mixed-use commercial and residential site. The ground floor will have flex office/light industrial and four new market rate apartments on the second and third floors. 

The City of Batavia is the current owner of building and will transfer the title to the Batavia Development Corporation for sale to Jackson Square LLC. The company is seeking a sales tax exemption of $24,816 and a mortgage tax exemption of $2,994 contingent upon Jackson Square LLC purchasing the building.

When we e-mailed a series of questions to Steve Hyde seeking more details on the process by which tax subsidies were approved for COR Development to redevelop a portion of Batavia Towne Center, we also e-mailed five questions to Mary Pat Hancock, chairwoman of the Genesee County Legislature.

Under state law, in order for state sales tax abatements to be awarded to a retail development project, a finding must be made that meets a specified requirement. The finding must be made by the Genesee County Economic Development Center Board and confirmed by the chief executive -- in this case, Hancock -- of the government agency overseeing the IDA. 

For the COR project, the GCEDC board passed a resolution finding that the proposed retail project would provide goods and services not readily available to Genesee County residents.  The only confirmed tenant for the space at the time was -- and still is -- Dick's Sporting Goods.

Hancock said she was not available to respond within the deadline set by The Batavian. We received her answer today. Below are the questions we e-mailed and her e-mailed response.

Questons:

1. Did you conduct any independent research to substantiate the board's decision?

2. At the time you wrote the letter, what did you know about the proposed tenants for the retail space? Were the names of all the businesses communicated to you, and if so, was it your understanding that contracts had been signed or whether these businesses were just proposals?

3. On what factual basis did you base your decision to confirm the finding? What is it about the proposed businesses that caused you to reach the conclusion that they would provide goods and services not readily available in Genesee County?

4. What do you say to a comment such as Mike Barrett's, that tax incentives for retail are like "using your own tax money to put yourself out of business"?

5. Should the existing businesses in Genesee County that must now compete against subsidized national chains receive any tax breaks or other mitigation to level the playing field for them?

Hancock's Response:

Dear Howard;

I do appreciate your forthright and direct manner. It is refreshing. Howard, I am going to frame my reply by indicating how I proceeded to educate myself regarding the proposed project. I hope it covers the intent of your request.

The Legislature does appoint the GCEDC Board. We believe they are a group of outstanding citizens with very strong business sense…as demonstrated by their own careers. They are also committed to the economic health of our community, or they wouldn’t be spending hours of their valuable time volunteering on the GCEDC Board.  Because they have a strong business sense, they also have a very strong respect for the law and carefully follow the latest and most accurate legislature and regulations guiding IDAs. I attended the meeting where they discussed the issue thoroughly. At a subsequent meeting they voted in favor of proceeding with the project.

The Legislature has an attorney. It would be foolhardy for me to sign an official letter without checking the legality of the document with our attorney. He is a careful attorney and checks out his information on many levels. He researched the law and provided me with a copy of the statute as recently amended. He also gave me his written opinion as to the requirements of the law and its application to this project. I was assured that we were acting within our legal rights.

The Genesee Economic Development Council (sic) was required to hold a public hearing and make specific findings of fact before awarding incentives, and did so on this matter.   I did attend the hearing and heard a positive presentation and only six persons spoke against the development.

Howard, I remember how that area looked before the development. It was sad. The lack of development in that area did not result in a healthy Batavia downtown. It looks, and is, more vibrant now, not only in that Town of Batavia area, but downtown as well. We hope to keep it that way…and better. I am most hopeful and confident that each step we take to attract new and suitable businesses to our area…will benefit all of us. Howard, I know you and I share the same desire for a successful, livable, and economically healthy community. We may not agree on everything, but our goals are surely the same.

The Bank of Castile celebrated 20 years in Batavia this afternoon with a community gathering at its East Main Street branch and by presenting a gift backpack with a $500 donation in it to the backpack program of United Way.

Above, Erik Fix with United Way of Genesee County accepts the basket from Diane Torcello, branch manager, and Jim Fulmer, president and CEO of the Bank of Castile.

Castile branches traditionally celebrate their anniversaries with gifts to the community, bank officials said.

Branch employees picked the backpack program for the 20th anniversary gift.

"At the Bank of Castile, we have always been a strong believer in the good that United Way does in our community," Torcello said. "We are proud to support the program with a contribution."

Throughout the 90-minute opening ceremony for the new Muller Quaker Dairy Plant in the Genesee Valley Agri-Business Park, Steve Hyde sat in the second row and smiled.

Not one speaker -- and there were five of them -- mentioned Hyde by name. There was no official recognition of his work to bring this day about.

Still, he smiled.

You couldn't help but think of a proud father watching his son or daughter graduate.

Asked how he felt afterward, Hyde, as he usually does when posed such questions, demurred and praised others.

"It’s a great day for everybody in the community," Hyde said. "This was a dream of mine and a lot of other partners. It’s 10 years in the making and this is just phase one."

Hyde has his critics. Genesee County Economic Development Center, the organization he runs, has its skeptics. But the Muller Quaker plant is a big deal, especially for a county of only 57,000 people that hasn't had a big factory opening in more than five decades.

PepsiCo and Theo Muller Group invested $200 million in the facility and that dollar figure doesn't count product development, designs for new trade-secret machinery to create the Greek-style yogurt, new software to run the plant and the planning that goes into bringing a new product to market.

Ken Adams, president of Empire State Development, indicated he was a little bit awed by the idea of a global powerhouse like Pepsi and a German-based company like Theo Muller coming to Upstate New York.

"Having PepsiCo here, having Muller here, is like a global seal of approval for this park and its infrastructure," Adams said.

And he gives a lot of the credit for making it happen to Hyde.

"Steve Hyde as far as I’m concerned, he really put the agri-business park, this particular location, on the map at a statewide level," Adams said. "Steve is always in Albany working very closely with the legislators from the area, senate and assembly, working very close with the governor’s office.

"I’ve told this to him, so I'll say it to you," Adams added, "Steve Hyde is a forceful, well respected advocate for investment and economic development here in Batavia. He really put the site on the map and then he also pulls everybody together at the local and state level to make sure a project like this actually goes smoothly. That’s important for the company, for the investors, that there are no hiccups along the way."

A critical factor with Muller Quaker -- called Project Wave during the planning process -- was the speed at which all of the necessary permits could be secured. A lot of credit goes to Town of Batavia and Genesee County officials, but the GCEDC staff laid the ground work to have a shovel-ready site and push the paperwork through the process.

In his speech today, Theo Muller praised the local authorities who got approval for the plant so quickly.

"It would be unimaginable in Germany," he said with a wink. "In Germany that would have taken at the very least three years. You have to send a whole case of yogurt to them over there to get anything done."

Sen. Charles Schummer called the ag park a great idea of local leaders and said when GCEDC came to him for help, he was happy to jump in and secure federal grants for infrastructure.

"There is no better way to strengthen our dairy industry and create jobs than to build a park like this, which has helped attract this great company," Schumer said.

Assemblyman Steve Hawley, who helped with the state legislative process on the project, noted that in any big project like this, stretching, as it does, across the boundaries of local, state and federal responsibilities, there are a lot of people who deserve credit for bringing it together, but Hyde certainly provided critical leadership.

"This is a big deal," Hawley said. "It's one of the largest plants in the country. We need jobs. I hear about it every day from constituents."

It takes a lot of work, Hawley said, to untangle the regulations that can hold up a business and a lot of people had a hand in bringing it together.

"A lot of the credit goes to Steve, but it's a team effort," Hawley said.

Danny Wegman, CEO of Wegmans and president of the Finger Lakes Economic Development Council, is also a Steve Hyde fan. He believes Hyde will pull off the gargantuan task of developing WNY STAMP, the proposed 1,200-acre, high-tech manufacturing park in Alabama that could employ 9,300 people some day.

It's an audacious project, but Wegman said when there are people passionate about projects, they can make things happen.

"Steve is very excited about this," Wegman said last week during the governor's visit to Genesee Community College. "There are a lot of confidential things that can't be shared, but I feel confident that if somebody I believe in is excited about it, the chances of it happening are pretty good."

The success of the ag park only enhances the chance's of success with STAMP, Adams said.

"We’re very hopeful," Adams said. "It’s a globally competitive industry. The opportunity is at STAMP. It’s a great site. It’s much bigger than this site, the agri-business park, but Steve has done a good job at lining up all of the vital ingredients for that site -- power, water, obviously the land, permitting, all the things you need to really be shovel-ready when the right business comes along. He’s the chief marketer. He’s going to Albany tomorrow. He’s on it and he works very closely my colleagues at ESD on marketing STAMP, so we have our fingers crossed."

Hyde said it's all about building on the natural assets of Batavia and Genesee County and showing that can be done with the ag park will translate into confidence for other projects, such as STAMP.

"It helps build credibility in the eyes of some of the folks in the leadership roles in the state that we know how to do this here at the local level," Hyde said. "This (agriculture) is an industry where the regional assets were in great demand and we could make an impact, and when you look at the regional assets in the nano stuff in our region we’ve got the same situation developing."

According to Indra Nooyi, CEO of PepsiCo, Batavians owe a big thank you to Danny Wegman.

No, not for promising one of his unriviled grocery stores to Genesee County, but for steering her attention toward yogurt and the need to produce it in Western New York.

"When I visited Danny in his flagship store in Rochester, Danny said to me, ‘Indra, you should get into the yogurt business because it’s growing extremely rapidly and if you do, the plant has to be located right around here in Upstate New York,' " Nooryi said. "I listened to Danny  because Danny is one of the most respected thinkers in the industry, and, Danny, we delivered on the promise.”

Wegman stood at the back of a tent crowded with local and state dignitaries and smiled broadly.

Last week, Wegman told The Batavian that it might take build out of the STAMP project in Alabama to bring a Wegmans to Batavia. Today, Wegman (top inset photo) had a slightly different take.

Coming out from a tour of the new Muller Quaker Dairy plant, he said, "more projects like this and we'll be here."

The dairy plant -- which will manufacture two brands of Greek-style yogurt, Muller FrutUp and Muller Corner -- officially opened today.

To start, it operates three production lines, employs 180 people in a 350,000-square-foot facility that could one day accommodate as many as 16 production lines.

Already, the plant produces 120,000 cups of yogurt per hour.

Sen. Charles Schumer announced during opening ceremonies that Muller Quaker has reached an agreement with the Upstate Milk Cooperative to source all of its milk from WNY dairy farmers.

The OA-TK-A plant in Batavia will produce the milk protein that Muller Quaker uses in its yogurt production (rather than strain milk as done in traditional Greek yogurt production, Muller Quaker adds protein to give its yogurt a similar rich, silky texture).

"This is an amazing shot in the arm for our economy here in Western New York and I am pledged to continue to do whatever I can do to make this the most successful venture in Western New York," Schumer said.

The project brings together two companies -- the worldwide giant in the food and beverage industry, PepsiCo, and a much smaller, but well respected, dairy company from Germany, the Theo Muller Group.

Stephan Muller, who moved to the United States to assume the reins of the new company, spoke about the entrepreneurial spirit, the risk taking of the $200 million investment by the two companies.

Muller represents the fifth generation of Mullers in the dairy business.

His father, Theo Muller, said through a translator, that the company made previous attempts to break into the U.S. market.

Stephen Muller described his father as a bit of a technophobe who never used a computer and then he got an iPhone just after Stephen Muller arrived in the U.S.

"He sent me a text message," Muller said. "I think it was his first one or one of his first ones. He said, ’520 years ago Christopher Columbus started his journey west with just three ships. Now you are our Columbus. Capital, excellent knowledge now are your ships, and one thing one cannot buy, the iron will to have success."

Nooyi (second inset photo) believes the product will be successful

PepsiCo already has a track record of success of developing a balanced portfolio of food and beverage products that she described as "fun for you, good for you and better for you."

"PepsiCo is becoming a real force in the good-for-you space," Nooyi said. "We have the best go-to-market systems and superior marketing, combined with Muller’s leadership in phenomenal dairy products, I think we’re going to become a real force in the dairy business in North America."

The success in just getting the plant open bodes well for Batavia, Schumer said. With 90 acres of available space at the Genesee Valley Agri-Business Park, there will likely be more jobs coming to town.

"We could employ as many as 1,200 more people when the food processors learn of the transportation advantages, the food production advatnages and just the work force advantages that we have here in this area," Schumer said.  "Food processors from around the world are learning what we have to offer."

Ken Adams, president of Empire State Development, said the success of today's opening is something that will attract more investment in the park, especially in supply chain support for Muller.

"It’s a very powerful confirmation of this facility, the agri-business park as a center for international investment," Adams said. "One thing I’m struck with at this ceremony is you’ve got a global leader like PepsiCo partnering wth Muller and obviously Quaker, the PepsiCo brand, coming together right here in Batavia. The project confirms Batavia, Genesee County’s position, certainly in the Northeast if not North America, as a center of the yogurt universe."

To purchase prints of these photos, click here.

The state law meant to curtail tax breaks by IDAs for retail developments should be defined as narrowly as possible, according to Comptroller Thomas DiNapoli.

If IDAs broadly interpret the law and push through subsidies for projects that should be outside its scope, then reforms may be necessary, DiNapoli said.

"They should certainly interpret it as narrowly as possible," DiNapoli said. "Having not been a Legislator at the time, I can't overly interpret on their behalf the intent. But what I think we'll do with IDAs that are too broadly interpreting that exception is, we'll make recommendations and work with legislators to tighten up that definition, if that seems necessary to curtail the use of IDA incentives for retail."

DiNapoli was in Batavia this afternoon for a meet-and-greet fundraiser hosted by the Genesee County Democrats at Larry's Steakhouse.

Throughout a six-minute conversation with The Batavian, DiNapoli made it clear he doesn't believe IDAs should be, as a general rule, handing out tax incentives to retail projects.

Asked whether retail chains really wouldn't come to a community unless they get tax breaks, DiNapoli said "that probably varies from community to community," but went on to explain the problem, as he sees it, with such IDA incentives.

"The kind of retail projects we've seen in recent years are the kind of projects that in the long term do not promote the kind of job creation and economic development that would really make a lasting difference in a community," DiNapoli said.

"I continue to have very healthy skepticism of the value of such incentives. As we always point out, there is a cost to the communities that isn't fully realized, so it underscores that the kinds of economic development (undertaken) should be of greater significance, more long lasting, have a transformational impact, and retail doesn't really provide that."

In early May, the Genesee County Economic Development Center Board approved $1.8 million in tax incentives for COR Development to remodel the vacant space at Batavia Towne Center formerly occupied by Lowe's Home Improvement.

The package includes a reduction in property taxes and forgiveness of state and local sales taxes on building material and store fixtures.

The state law prohibits IDAs from giving away state sales tax money unless certain findings are made (there is no law that prohibits other tax breaks for retail projects). The potential findings are that the project is in a highly distressed area, is a tourist destination or will provide goods and services not readily available to area residents.

It was on the last exception that the GCEDC board based its decision on. There was no evidence presented at any public meeting to substantiate the finding.

The only known tenant at the time of the vote was Dick's Sporting Goods.

Genesee County has five small retail outlets that sell sporting goods, four of which are locally owned.

Among the arguments put forward by GCEDC CEO Steve Hyde in support of tax breaks for COR is that he needs that Lowe's space filled in order to attract major corporations to projects such as WNY Stamp and the Genesee Valley Agri-Business Park.

"I'm not sure I buy that argument," DiNapoli said. "I'm not in a position to judge that, but that argument is a stretch."

DiNapoli acknowledged that interpretation of the law is largely left up to the local IDAs.

"Even the report we put out every year (on IDAs in NYS), even that is limited by the fact that it's self-reported information," DiNapoli said. "As people have pointed out, IDAs, as well as other authorities in New York, tend to operate with a level of autonomy that I think doesn't provide a maximum opportunity for accountability.

"As you point out," he added, "there are certain exceptions and there certainly there isn't any easy way to clamp down on an IDA that might be too generous in interpreting that exception."

Two Buffalo Bills players were at City Slickers on Saturday night to mark the restaurant's first anniversary.

Pictured are Shaun Vaccaro, of Fullblast Productions, Patrick Kelly, of Fullblast, Bills defensive back Crezdon Butler, Bills defensive back T.J. Heath and Fullblast owner Tim Walton.

The Artisan Market at Harvester opened today with more than a dozen artisans participating.

The goal is to create a space that attracts artists and customers for their creations from throughout the region.

"When people come in they're going to know this is not commercial, it's not buy-sell, it's not a craft show, it's not a flee market. It's an artisan market," said Lucie Griffis, the market's manager. "We want bring a little of the artistic life from other areas to right here."

The market is open Saturdays from 10 a.m. to 4 p.m. and will host two-day events on first Fridays and Saturdays later this year. 

There is an area with tables and chairs for people to sit and enjoy entertainment acts, from jugglers to musicians. Local charities are welcome to use the space for their food-sales fundraisers (chicken BBQs, pulled pork, hot dogs and hamburgers, etc.) for free.

Top photo: Sharon Jahnke Long works on a portrait of Julliette Yates.

Author and weaver Bridgette ni Brian.

Dave Watson with his guitars.

 

Press release:

For the next two weeks, the lower suite of the building at 8745 Lake Street Road, Le Roy, which houses United Memorial’s Urgent Care and Diagnostic Services, will be undergoing extensive and disruptive repairs to its plumbing systems. After several discussions with the building’s owner, United Memorial feels that it is in the best interest and safety of our patients to temporarily close during this period.

During this time, patients are encouraged to utilize Urgent Care and Diagnostic Lab and Imaging Services at the Jerome Center at 16 Bank St., Batavia. Staffing at the Jerome Center will be enhanced to accommodate the expected increase in patient volumes.

United Memorial’s integrated computer system will allow any patient with standing orders for diagnostic laboratory or medical imaging, usually seen in Le Roy, to be seen at the Jerome Center without having to have orders resent from physician offices.

The Jerome Center is located in the center of Downtown Batavia. From Le Roy, take Route 5 (Main Street) to Batavia. Turn right onto Bank Street. The Jerome Center will be located on the right. Hours for Urgent Care are 11 a.m. to 8:30 p.m., Monday through Friday and 9 a.m. to 8:30 p.m. on weekends. Laboratory and Medical Imaging services are available 6 a.m. to 5 p.m. Monday through Friday and 6 a.m. to noon on Saturdays.

We apologize for any inconvenience and expect to reopen the Le Roy site on Monday, June 17.

A new urgent care clinic opening Wednesday in City Centre will not only be state-the-art but be a true revolution in how health care is provided, according to its top executives, Mark Celmer and Melissa Marsocci.

"This is a health care delivery model that doesn't exist, to my knowledge, anywhere in the country," said Celmer, who is president of Buffalo-based Insource Healthcare Solutions. "We coordinate health care back to pediatricians, specialists, primary care physicians. We have advanced telemedicine which is state-of-the-art. We can get patients seen faster and with more related services than anybody short of the Cleveland Clinic."

For years, Insource has developed urgent care facilities for the owner of multiple urgent care centers, but Marsocci said Insource had its own vision about how to provide health care and decided to start opening its own urgent care units.

Batavia is the first of four locations being opened in New York and Pennsylvania over the next two months.

The clinic is between Genesee Dental and Steve Hawley's insurance office. It's a location used for a long time by DENT Neurological Institute, which will continue to rent office space there.

Insource is not coming to town to compete with any existing physicians or the hospital, said Marsocci, who grew up in Le Roy and lives in Batavia.

"We're not going to steal anybody's patients," she said.

Following a patient's visit to Insource, the patient will be referred back to his or her primary care physician or the appropriate specialist with all of the patient's records shared with that doctor.

For patients, the wait time to see a medical care professional will be less than 15 minutes and most patients will be in and out of the clinic within an hour.

Typically, when a patient visits an urgent care clinic, once they're taken into an exam room, they "own that exam room," Marsocci said. At Insource, the patient will be given an exam and then wait in a "results waiting room," which has comfortable chairs and a TV. That frees up the exam room for other patients.

Celmer and Marsocci are particularly excited about the telemedicine model they've developed.

Here's how Marsocci described it:

Let's say you came in and you had a fractured hand. We can certainly treat that, but upon a view of your X-ray, it looks pretty severe. We say, "this looks serious, so let's get a second opinion from an orthopedic." Maybe you need some screws in it. Maybe it needs immediate attention, maybe not. You come into the telemedicine room and the orthopedic comes in on that flat screen.

He can talk to you and you can talk to him. He might ask the provider to move your hand around and at the same time we can push that X-ray through to him.

We just lowered your cost of care because typically you would have gone to that orthopedic and he would have redone your X-ray, also exposing you to radiation. Now it's just one X-ray.

A consulting physician can dial into the telemedicine center through a secure line using a desktop, laptop or even an iPad or smartphone.

Even if a doctor is away from his office -- maybe on the golf course -- he can use an app to consult with a patient in the telemedicine room.

The quality of the pictures sent to the doctor is amazingly accurate and detailed, Marsocci said.

Insource has hired six full-time employees and all of them live in Genesee County.

With a range of specialists sharing the Insource space -- including neurologists, orthopedics, pediatricians, cardiologist and urologists -- Calmer and Marsocci say the concept will do a lot to reduce the cost of medical care.

One insurance company is so excited by the idea, Marsocci said, thet they want to see more Insource clinics built in Pennsylvania.

For patients who must pay for services with cash or credit card, they will find a visit to Insource a lot less expensive than going to the emegency room. An ER visit can run into the thousands of dollars, but a typical visit to Insource will cost about $180.

Using technology, there will even be cases where patients can save on super expensive ambulance rides to a hospital in Rochester and Buffalo, if that's needed. If the patient doesn't need to be on an ambulance, but still needs to be monitored while by driven to the hospital by a family or friend, Insource can provide the patient with an iPad to monitor his or her condition during the ride.

Insource also plans to set up a telemedicine center at the county nursing home, which will save the county money on providing medical care to patients there.

"These are common sense approaches to reforming health care instead of doing things that don't make sense," Marsocci said.

It's one of the most frequently asked questions from readers of The Batavian: Why is there no Wegmans in Batavia?

Danny Wegman, the company's CEO was at Genesee Community College today and he answered that question for us:

"If we get the STAMP project in, we would probably be very happy to move here," Wegman said.

STAMP is the propposed high-tech manufacturing facility Genesee County Economic Development Center is trying to bring to the Town of Alabama. It could eventually mean as many as 10,000 new jobs.

Though Wegman was too diplomatic to say it, clearly, his view is the current economy in Genesee County couldn't sustain a grocery operation the size and scope of Wegmans.

STAMP is a project of personal interest to Wegman because he's chairman of the Finger Lakes Regional Economic Development Council, one of 14 regional councils statewide assisting local IDAs in economic development.

Wegman is admittedly excited by the possibility of STAMP and believes it is something that could actually come together as an economic growth engine for the entire region.

"The high-tech arena is always exciting," Wegman said. "You always hear about it in California. Wouldn't it be nice if it was right here in our own backyard?"

We also asked Wegman about the GCEDC's $1.8 million in tax subsidies for COR Development and Wegman said he was unfamiliar with the project.

As a general rule, however, he said he opposes tax breaks for retail projects.

"I have to say I'm not real keen on that, since we’re a local business and we wouldn’t want somebody coming in and getting a real tax break..." Wegman said. "I think that’s divvying up a pot that’s already there. If the retailer helps grow jobs in some way that actually makes something, maybe, but most retailers don’t make things. That’s my view on it."

Asked if Wegmans would accept tax breaks to open a store in Genesee County, Wegman said, "I can’t say someone else shouldn’t and that we would. I don’t think that’s right, although we do make a lot of the food we sell, that's why I was giving you that exception."

YNN's Rose Eiklor pointed out to Wegman that there is a Facebook group called "Bring Wegmans to Genesee County." Wegman had never heard of it, but said he would take a look.

Genesee Community College sits high on a hill surrounded by a lot of open space.

Gov. Andrew Cuomo visited GCC today to promote his "New York Tax Free" proposal, which would allow SUNY campuses such as GCC to play host to new businesses or businesses that are creating new jobs.

Up to 200,000 square feet of land around a SUNY campus could also be used for the 100-percent-tax-free zone.

All that open space around GCC, then, might also be described as opportunity.

"That was the vision 10 years ago that we started developing with GCC and Dr. Steiner and now Dr. Sunser," said Steve Hyde, CEO of GCEDC. The agency now has offices across the street from the college campus in what's known as the Upstate Med-Tech Center. "I think we're really well positioned to rock and roll together and really make a difference here."

Cuomo is clearly passionate about his proposal.  Whatever its critics might have to say about it, Cuomo has an answer and at times during his speech and afterward made his points with the fervor of an evangelist for Upstate New York.

Cuomo:

Nobody ever said (speaking of those who have left New York), I didn’t like New York or I didn’t like Upstate New York. Nobody.

We did this (mess up the state and cause 50 years of decline) to ourselves. We did this to ourselves because this state has every asset imaginable.

I spent eight years in the Clinton Administration. I worked in every state in this nation, literally, dozens and dozens of times. I know everything else that’s out there. I’ve seen the best that every state has. No state has to offer what we have to offer in New York. No state has our combination of talents.

Our geography, our diversity, our history, the most beautiful natural resources, mountain ranges, the greatest cities, beaches, we have it all, all in one state – the best of everything with the distillation of the best of America -- in one state called New York.

So it’s not that that they're beating us. We're beating us. We created these conditions. We can reverse these conditions. Reduce the taxes. Make this state as competitive as any state out there from a tax point of view.

"NY Tax Free" would turn SUNY campuses into zones with no state or local taxes of any kind for businesses based on the campuses (or in the 200K zone), and a company's employees, for up to 10 years.

The businesses would have to match the educational mission of the host campus, working in industries of related fields of study.

Cuomo's dream is clearly to incubate the next Apple or Google.

"If you look at the places that are creating jobs, it's the higher education institutions that are doing research and development. It's the 28-year-old who develops the new chip or the new iPhone of the new application, but the schools are actually creating the jobs."

These sorts of companies are getting founded on NY campuses now, Cuomo said, but 75 percent of them leave New York within the first year, taken either by founders or investors to lower tax states such as Florida or Texas.

Yes, the proposal is big and bold, Cuomo said. No other state in the nation has ever dared to take on such an audacious project, but New York does big and bold well, Cuomo said (while a picture of the Erie Canal was projected on the screen behind him).

Big problems, he said, require big solutions.

"People have been leaving," Cuomo said. "Jobs have been leaving. At the same time, we have more and more government and the costs of governing are going up and up while there are fewer and fewer people to pay for the increasing cost of government, which makes taxes higher, making the tax burden higher, which causes more people to leave. That's the dynamic and the longer the dynamic continues, the worst it gets."

Upstate, especially, needs the help, Cuomo said, and with 55 of the 64 SUNY campuses located in Upstate, and 95 percent of Upstate residents living within 30 miles of a SUNY campus, this proposal makes a lot of sense.

In the past several years, there has been only a 5-percent increase in new jobs in Upstate, while New York City has grown jobs at a clip of 16 percent. The 5-percent growth rate doesn't even keep up with the national average.

The proposal would create 120 million square feet of entrepreneurial space in Upstate, Cuomo said, which is more commercial space than in San Francisco and Philadelphia combined, and more than Buffalo, Rochester and Syracuse combined.

Speaking with reporters after his speech, Cuomo said the major criticism he's heard of the proposal is that taxes should be lowered to zero for everyone.

"It's the right idea to have zero taxes across the board," Cuomo said, "but there's some problems with the details."

If the proposal seems unfair, Cuomo argued that the current tax system is unfair.

"There is not a level playing field in the current tax code," Cuomo said. "The more you make, the more you pay. Some businesses get tax breaks that others don't. We have tax breaks for manufacturing. Why? Because we decided we want manufacturing businesses here. We have tax breaks for the film business ... because we want to produce movies here. It's a falsity that the tax code is equal, but for this. The tax code is anything but equal."

He also argued that residents around SUNY campuses will benefit from the job creation, with employees of these companies buying groceries, cars and houses locally.

"There will be economic activity in your community and that will be a good thing for you," Cuomo said.

He added, "We can't sustain what's going on now in Upstate New York. We cannot sustain the population decline. Nobody moving in. Everybody moving out. Fewer and fewer people paying the cost of a growing government.  We cannot continue the trajectory we've been on."

You can make Greek yogurt at home. About all you need is some yogurt culture, a whisk and cheese cloth.

After you strain your batch you're left with a watery white liquid known as whey. You will have about three ounces of whey for every ounce of yummy yogurt.

One Web site lists 18 possible uses for whey in your home, whether as a substitute for other liquids in cooking or as a skin care product. But for Alpina, which produces 245,000 tons of Greek yogurt a week, getting rid of the 455,000 tons of whey a week isn't that simple.

Right now, the whey is hauled to a facility in Wyoming County where it is digested into methane and used to generate electricity, but Alpina is exploring other options for dealing with whey.

Whey has become controversial in media reports over the past week or so. It started with a well-researched and reported story in Modern Farmer about the Greek yogurt boom with an unfortunate headline, given the substance of the story: Whey Too Much: Greek Yogurt’s Dark Side.

The story was far from frightening, but outlets such as Fox News and USA Today turned it into overblown headlines such as Toxic waste from Greek yogurt poses danger to waterways and Greek yogurt's dirty little secret.

What's this dark side, this toxic danger, this dirty little secret? 

If whey goes into a stream or lake, bacteria will boom and suck all the oxygen out of the water, killing all the fish.

But there are no reports of any whey from Greek yogurt being illegally dumped. In fact, the Modern Farmer story details both the responsible methods for disposing of it now and explores research into other possible uses.

Disposing of whey in a responsible manner is important to Alpina, said Roger Parkhurst, director of operations for the Batavia plant.

Labeling whey "toxic waste" is the kind of statement that could be said about a lot of substances, Parkhurst said.

"You could apply the term to gasoline," Parkhurst said. "We put it in our car and it's beneficial, but if it's abused it becomes a dangerous material. We handle whey right and in a responsible manner so that it isn't a danger."

Beneficial uses for whey include converting it to an energy source -- which Alpina does now -- or using it to supplement cattle feed, which Alpina is also exploring.

Alpina would love to sell its whey, so that the money spent to haul it off can instead become a source of revenue. A Cornell researcher is studying methods for turning whey into a baby formula supplement. That work is promising, Parkhurst said.

Whey could also become a direct energy source for the Alpina plant, saving the company money. 

Parkhurst said the company is interested -- though has no specific plans -- in finding a way to digest whey on site and convert the methane into electricity and convert the heat from the process into heat for Alpina's building.

Mark Masse, vp of operations for Genesee County Economic Development Center, said companies have contacted the agency about building a digester at or near the Genesee Valley Agri-Business Park, including working directly with Alpina, but it has never received a formal application.

"I am not sure why any of those projects haven’t moved forward yet," said Masse in an e-mail response to a question, "but my best guess is that they can’t secure a long-term contract for the waste product, and/or that these digester projects are very capital intensive and they usually try to secure NYSERDA grants to help defer these capital costs to shorten the payback period of the project and can’t secure those grants."

There are also concerns about any environmental risks associated with a digester located at a food processing park that sits above an aquifer.

Experts have told Masse, he said, that whey needs to be mixed with animal waste to be properly digested and any company proposing such a project would have to prove it could be done in a safe manner.

"We never got far enough along with any of the digester companies to have this conversation with them in depth or with our board," Masse said. "That issue would have to be discussed at length if any company wished to use animal waste in their process, and our board would have to approve it."

One local farmer has contacted Alpina about obtaining whey to mix with cattle feed, Parkhurst said. The farmer said he checked with Cargill, which provided him with a formula for mixing whey with his feed and now he would like to find out how to get his hands on some Alpina whey.

"That's just one farmer and he's not capable of taking on the whole thing," Parkhurst said. "But if it helps his business and it helps our business at least some, I would be more than happy to participate."

Alpina is actively exploring all options for whey waste, Parkhurst said, looking for the most economically sensible and environmentally sound solution.

"We've even worked a little bit with RIT and GCC," Parkhurst said. "There is money floating around to help research any practical application."

A local operation that may be able to take on all of Alpina's whey waste is Baskin Livestock.

Baskin, as we've reported before, specializes in taking food company waste and converting it into cattle feed.

Bill Baskin is eager to explore a partnership with Alpina to bring whey waste to his plant on Creek Road in Bethany. 

"We work with food producers all over the Northeast to get rid of their waste," Baskin said. "There’s no reason we can't do it right in our own back yard."

With any food production, there is a substantial amount of waste -- batches get mixed wrong, products are spilled or spoiled or unsold product goes bad. Baskin takes all that waste, dries, grinds it and turns it into cattle feed.

Quaker-Muller is already sending some of its product waste to Baskin, but the way the plant will make yogurt -- the Quaker-Muller plant officially opens Monday -- there is no whey waste.

"Our yogurt is consistently high quality because we add milk protein from strained milk to our yogurt to deliver the same delicious texture and taste every time," said Scott Gilmore, spokesman for PepsiCo.

Until recently, Baskin and Parkhurst hadn't spoken, but yesterday, Baskin's director of business development, Peter Klaich, met briefly with Parkhurst and Parkhurst said he's certainly interested in learning more about how Baskin can help with whey waste.

Parkhurst is proud that Alpina buys almost all of its raw ingredients from farmers in Genesee County and WNY. The potential of working with Baskin fits right in with that philosophy, Parkhurst said.

"We're always interested in working with local companies," Parkhurst said.

A proposal to create tax-free zones around SUNY campuses is intriguing to officials at Genesee Community College, according Rick Ensman, director of development and external affairs, even though it's unclear how it will all work.

Gov. Andrew Cuomo announced the proposal a few days ago. The plan would allow any business on a SUNY campus, or in some cases, in a zone around the campus, to operate completely tax free -- including no state income tax for employees -- for 10 years.

The justification, according to Cuomo, is to spur business growth and innovation in New York.

"This is an exciting and innovative proposal," Ensman said. "It has great potential for job creation and new academic-business partnerships. We’re eager to learn about the details, and about how we can participate."

The proposal has not yet been through the legislative process. It seems to have Republican and Democratic support so far, but in the process some details could change or refined.

"As I understand the proposal, businesses would be eligible for the tax-free zone if their products or operations are related to programs of study on the campus," Ensman said. "So it’s possible that businesses related to any of our programs (e.g. technology, health care, office tech, etc.) could locate in the area."

Issues such as where businesses would be located and how they would fit into the campus, or just off campus, won't be explored until and if the proposal becomes law.

"We’re anxious to learn more about the program," Ensman said.