Business

Did you see the guy in the pink gorilla suit on East Main Street, Batavia? It's apparently a publicity stunt. First thing I said to the guy was, "What, lose a bet?" He said he was only allowed to answer, "Coming soon." He said he was hired to walk up and down Main Street in the suit.

The proposal is in the city budget, it's in the strategic plan, it's on the drawing board, but officially, the Batavia City Council has yet to approve the creation of an economic development director.

The vote will take place at the council's next business meeting, but on Monday council members got a chance to learn more about the proposal, ask questions and state their opinions.

There were no strong objections, and Councilman Bill Cox called on his fellow council members to approve the proposal.

"It’s a great opportunity for the city and it’s the most important thing we’ve done in a long time," Cox said. "I don’ think you’re going to see any results for 18 months, because no matter what you decided, you’re going to have to apply for grants, you’re going to have to wait for replies, you have to be selective, so I think we’ll see the first fruits of our labor in 18 to 24 months."

Under the proposal, the city would chip in $10,000 per year for each of the first two years (funded by cutting $15,000 from the grant writing budget of the city), with the balance of the eventual hire's salary being covered by money from the revolving loan fund and the micro-enterprise fund (both funds filled years ago by state grants).

The Batavia Development Corporation, which in the past has overseen the revolving loan fund, would hire and supervise the economic development position.

Councilman Bob Bialkowski wondered if, within the two years allotted for the new position to start paying off, whether new grants would start funding the position.

Ray Chaya, president of the BDC board of directors, said, "that would be the hope. Even though the state is in dire straits, there is still money out there for economic development. We want to be able to capture whatever is out there as soon as it’s available."

Council members asked questions about benefits -- the new hire will not receive benefits through the city as an employee of the BDC -- and what the person will actually do.

The job description specifies that the economic developer will be required to recruit and retain small businesses in the city and help businesses find ways to expand and grow.

If the council approves the proposal, the BDC can get to work on recruiting the right person and hopefully getting him or her in place on or before Aug. 1.

"We really need three-to-four months to get that person in here and really have benchmarks set up," Chaya said. "Two years is really a short amount of time, so this person needs to have strong communications skills, small business sense and a really good understanding of economic development."

GCC makes a substantial contribution to the regional economy, according to a new study that will be presented at a public meeting at 1 p.m., Wednesday, in the Conable Technology Building.

The direct impact of college spending, salaries and goods and services is more than $22 million, according to the study, and former students add another $104 million.

Since 1966, 22,000 people have earned degrees and certificates from GCC. The lifetime earnings of a GCC graduate is $415,700 more than a peer with only a high school diploma.

About 70 percent of GCC's graduates remain in the GLOW region.

GCC's overall fiscal impact on the GLOW region is about 2.5 percent of the total economy.

To assist in arranging seating and refreshments, please RSVP attendance to the "The Economic Impact of Genesee Community College" presentation to Patty Hume in the External Affairs office at (585) 345-6809 or pahume@genesee.edu.

Full press release after the jump:

BATAVIA, NY  -- The results of a recently completed study entitled, "The Economic Impact of Genesee Community College" will be presented to the public on Wednesday, April 27, by Kjell A. Christophersen, Ph.D, of Economic Modeling Specialists, Inc. (EMSI), the president of the internationally acclaimed research organization.

Sponsored by GCC in cooperation with Genesee County Chamber of Commerce, the Genesee County Economic Development Center, and Genesee Community College Foundation, the public presentation will be held in Conable Technology Building at GCC's Batavia Campus in room T-102 from 1 to- 2:15 p.m.

A synopsis of the presentation will also be given to the Genesee County Legislature Committee of the Whole at 6 p.m. the same evening within the Genesee County Legislative Chamber in Old Courthouse, Batavia.

"The Economic Impact of Genesee Community College" will feature results of EMSI's recently completed economic impact study which utilizes state-of-the-art, field-tested research techniques to report and analyze the investment that both students' and taxpayers' have in the college.

With great precision, the EMSI model records the college's economic value in terms of job and income formation, higher earnings captured by the students, the return to taxpayers for their college support, and a broad collection of social benefits and avoided costs through reduced crime, improved health habits, and lower expenditures for welfare and unemployment by GCC graduates and former students.

The economic impact study measured the flow of money through area communities resulting from college spending, faculty and staff spending, and student spending. The annual direct regional spending by the college on goods and services (other than housing) was $22.1 million, while spending by former Genesee students directly attributable to their education totaled $104.1 million annually. Together, these make a total current contribution of $126.2 million annually to the local economy, and comprise 2.5 percent of the entire GLOW region economy.

Since its founding in 1966, about 22,000 people have earned degrees and certificates from GCC, of which approximately 70 percent live in the GLOW region. Additionally, the lifetime earnings of a GCC graduate are $415,700 more than their peers with high school diplomas.

While the $126.2 million represents direct economic impact, the college also has an indirect economic impact on the community as college graduates tend to become good citizens investing in their homes, becoming involved in their communities and relying far less on taxpayer funded health and social service programs. The EMSI study shows that taxpayers save an annual $1.2 million through indirect benefits such as lower criminal justice costs, a decrease in employee-related absenteeism, and less health care spending for smoking, drug and alcohol abuse.

Christophersen has 30-plus years of experience as a senior economist developing and analyzing economic models in Africa, Asia, the Near East, Europe, the Caribbean, and the U.S. He has served as team leader on many assignments to carry out activities that include economic modeling, project appraisal, assessments, planning, design and evaluation, feasibility and recurrent cost studies, and training in economic and financial analysis.

To assist in arranging seating and refreshments, please RSVP attendance to the "The Economic Impact of Genesee Community College" presentation to Patty Hume in the External Affairs office at (585) 345-6809 or pahume@genesee.edu.

Press Release from GCEDC:

On April 14, during a board meeting of the Genesee County Economic Development Center (GCEDC) a resolution to approve the Draft Generic Impact Statement (DGEIS) for the Western New York Science Technology and Advanced Manufacturing Park was approved. The DGEIS has been completed and accepted by the GCEDC as Lead Agency for the proposed action.

On February 10, reports to the public of the preliminary findings of the DGEIS were presented at a public information meeting at the Town of Alabama Fire Hall.

The completed DGEIS, which was approved by the GCEDC board, includes an economic impact study, environmental studies, master plan update, traffic impact study, utility plan summary, proposed Comprehensive Plan amendment and farmland protection plan. The contents of the completed DGEIS have not changed significantly from what was presented in February.

The proposed action being examined by the DGEIS is the construction and operation of approximately 6.1 million square feet of advanced technology manufacturing and ancillary facilities, along with on-site utility improvements, on 1,337.20 acres of land in the Town of Alabama.

The WNY STAMP site is located along New York State highways 77 and 63, approximately 5 miles north of the I-90 New York State Thruway. The proposed action will involve rezoning the property pursuant to the Town of Alabama Zoning Laws. 

According to the DGEIS the buildable area of the WNY STAMP project is 46 percent of the entire site. The remainder of the land would remain as open space. The intent of the master plan design is to blend the manufacturing park into the existing fabric of the community.

The Hamlet of Alabama is separated from the STAMP site by a subtle ridgeline and gracious landscape setbacks from existing uses. As part of the open space system, only 9.5 acres of wetlands would be impacted by the current design, and the site will retain its rural nature.

The park will be built to high-tech industry standards, in line with employee expectations, and will respect its surrounding context and environment. 

The WNY STAMP site has seen several interested companies who were looking for locations on the East Coast and close to Canada. The companies were excited about the site, but it was not “shovel-ready” enough for their purposes.

“Planning, preparing and developing a shovel-ready site designed for appropriate industries, and having local community approval will help to secure companies at the WNY STAMP site,” stated Steve Hyde, president and CEO of the GCEDC.

"Developing the necessary infrastructure to attract investment from outside the region is one of the most important roles that the GCEDC takes on for our county. A site zoned for a particular purpose, where a company can begin building quickly, at the speed of business, is the best way to bring jobs to our community.”

A public hearing is scheduled for May 12 at the Town of Alabama Fire Hall. The hearing will begin at 7 p.m., and residents are welcome to attend and comment on the DGEIS. Postcards will be sent to the residents of the Town of Alabama next week as a reminder of the meeting. 

Copies of the DGEIS are available at <http://www.gcedc.com>, in print at the GCEDC offices, located at 99 MedTech Drive in Batavia, and at the Town of Alabama office.

Genesee County's jobs picture continues to improve, as the rate of unemployed residents has declined and some 200 new jobs were created in the county in March.

Data released from the State Department of Labor shows the unemployment rate for March in Genesee County at 8 percent, down from 9 percent in March 2010. 

There are 2,800 job seekers in Genesee County, down 100 from February.

Meanwhile, 100 new "goods producing" jobs were created in Genesee County, March compared to February. The number moved up from 3,600 to 3,700.

Government jobs also grew by 100 new positions, growing month-over-month from 6,200 to 6,300. That's the same number of government jobs in the county a year ago.

Other sectors of job creation remained steady.

There are now 22,300 non-farm jobs in Genesee County, compared to 22,100 in February and 21,900 in March 2010.

As a matter of "consistency," the Genesee Economic Development Center Board on Thursday approved tax abatements for a proposed Holiday Inn Express near the Thruway in Batavia.

The project will get a 60-percent PILOT (Payment in Lieu of Taxes), and relief from mortgage taxes and sales taxes on construction materials.

Several local hotel owners showed up for the meeting at the Upstate MedTech Center, but none where given a chance to speak. They previously expressed their concerns at a public hearing attended by GCEDC staff, but no board members. Last month, staff members presented a detailed report to the board on the owners' objections.

Mark Masse, senior VP of operations, said in a brief statement to the board today that he researched some of the claims made by hotel owners -- about the impact more hotel rooms would have on occupancy rates -- and concluded, "an analysis of the data could be interpreted in many different ways."

Past hotel projects that received GCEDC assistance included construction of the Best Western in 2002 and the Hampton Inn in 2002. In 2008 and 2010, local acquisitions of hotels received tax abatements (but no PILOT) and the Travel Lodge and Clarion have recently received PILOTs.

Masse concluded, "It's my recommendation as a policy decision to either be consistent with previous 60-percent PILOTS, mortgage tax and sales tax abatements, or is it the decision of the board not to help these types of projects going forward."

Board Chairman Hollis Upson spoke in favor of being consistent.

"There is some argument for the fact that additional rooms could be brought into the market without severe impact to existing hotels," Upson said. "It's certainly not the EDC's intention to harm any existing business, but we also want to be consistent."

After the meeting, the attorney for the existing hotel owners argued that there is no precedent for these tax abatements. He said the prior abatements for more rooms were granted years ago before the market was saturated.

"All of the data is that the 12-month occupancy rate never gets above 50 percent," said Thomas J. Warth, of Hiscock & Barclay. "Most of the properties are in the 40-percent area, and that's distressed property range."

There are four to five more companies that are in either early stage or mid-stage study of the Gensee Valley Agri-Business Park, and Columbia-based Alpina Products decision to set up shop in Batavia is going to help the cause, said Steve Hyde, CEO of the Genesee County Economic Development Center.

"Any time you get your frist tenant in one of these shovel ready sites, it really helps create momentum, much like the rising tide lifts all sail boats," said Hyde. "So, this is something we're most excited about."

The financial details are not available for public release yet because Alpina is still completing paperwork and then the application for tax abatements and grants most be approved the by GCEDC board.  The package is expected to be presented at the board's May meeting.

The deal is contingent on approval of a set of incentives as well as some 900-feet of new roadway being completed to the 10-acre lot Alpina intends to buy.

The purchase price is $50,000 per acre, Hyde said.

"That's the sweet spot," said Hyde. "You spend that much between buying the land and putting in the infrastructure. It really is a cost recovery model."

In a meeting with the Ways and Means Committee on Wednesday, Hyde mentioned that a mid-level Department of Transportation staff member was holding up a grant for a rail line into the agri-business park, and Hyde said he is hopeful this announcement will help unfreeze those funds.

Some of the businesses might want to locate in the park need rail and won't consider the park "shovel ready" without a rail line in place.

Even though Alpina won't need rail in its early years in the park, Hyde is hopeful Aplina's signing will shift the conversation about the grant.

"Hopefully, it will enable a different conversation," Hyde said. "I'm hopeful it will show this site is real."

Hyde said the GCEDC had four meetings with either staff of Alpina or the company's site selection consultant and the final meeting occurred with the company's entire board of directors, who all flew from Columbia to Batavia to visit the area and hear why this was the right site for them.

The full court press included a meeting attended not just by GCEDC staff, but staff from Buffalo-Niagara Enterprise, Greater Rochester Enterprise, Cornell, RIT and Town of Batavia. Lt. Gov. Bob Duffy was on a speaker phone for key parts of the presentation and really tried to sell the executives on what a great area Western New York is, Hyde said.

GCEDC officials then gave the executives a tour of the county, showing off its amenities and areas of growth and revitalization, and then showed off some of the amenities of the region.  The tour concluded with a dinner at the Wine and Culinary Institute in Canandaigua.

Chefs there made a cheese cake in front of the dignitaries using an Alpina product for the topping.

But in the end, Hyde said, it's all really about the jobs.

"We're delighted that this came through because more than anything, it's going to create 50 jobs for 50 families," Hyde said. "And you know what, in this time, in this economy, every job our business community creates helps."

Joe Teresi, above, accepts his 2010 Geneseean of the Year award from the Genesee County Chamber of Commerce during the its annual awards dinner Saturday at the Clarion Hotel.

Below, the articles we previously published about each of the award winners.

• Meet Joseph Teresi, Geneseean of the Year
• Business of the Year has it covered
• Pudgie puts the local into 'locally grown' produce and garden plants
• Stuart Steiner: Leaving at the 'top of his game' and reaping a special reward
• Robert Bennett honored for outstanding community service

Ron Weiler, Sterling Tents, Business of the Year.

Robert Bennett, winner of Wolcott “Jay” Humphrey III Excellence in Community Leadership Award.

More pictures after the jump:

MC, Dan Fischer, WBTA.

Jeff Boshart, chairman of the chamber board.

Chamber President Lynn Freeman.

Stu Steiner accepting the chamber's first-ever Lifetime Achievement Award.

Stu Steiner.

Daniel "Pudgie" Riner, owner of Triple P Farms, 2010 Agricultural Business of the Year.

 

The Easter Bunny made his annual appearance at Oliver's Candies on West Main Street, Batavia, on Saturday. 

GCEDC has landed its first business for the Genesee Valley Agri-Business Park in Batavia. It is a Bogata, Colombia-based dairy product company that will use the plant to expand its yogurt business into the United States.

According to South American news reports, Alpina Productos Alimenticios will invest $15 million in the project and will initially hire 50 people at the plant.

Established by two Swiss entrepreneurs in 1945, Alpina runs nine industrial facilities across Colombia, Venezuela and Ecuador, and has commercial presence in more than 12 countries. 

The product line, which generates about $740 million in annual revenue, includes beverages, milk, baby food, desserts, cheeses, cream and butter, and fitness food products.

"The Alpina brand is a symbol of pride not only to Colombians but to the entire Andean region," Alpina President and CEO Julian Jaramillo (pictured) told La Republica. "We hope to build a new frontier for growth in the U.S. market, based on the properties of innovation, quality, nutrition and sustainability associated with our products and our presence in places where we already operate."

But it's not a 100-percent done deal, according to Genesee County Economic Development Center CEO Steve Hyde.  

The company intends to purchase a 10-acre parcel with a phase I construction plan for a 28,000-square-foot yogurt manufacturing facility.

The company picked one of the newest parcels in the park, so there is still a little bit of work to be done to get it completely shovel ready, including extending one of the roadways.

The purchase is contingent on that work being completed on schedule, and if it is, Hyde said, construction on the plant should begin in August.

The 10-acre parcel will give the company room for expansion.

"They've got a real footprint for future growth," Hyde said.

According to the La Republica article, Alpina has achieved growth rates in Venezuela and Ecuador of 15 and 20 percent and his hoping for the same level of success in the U.S.

Jaramillo believes per capita consumption of yogurt in the U.S. is low, which he sees as an opportunity to capture new consumers.

Hyde said the company, which he described as really family oriented, has done a lot of market research and has determined the northeastern part of the U.S. has a fast-growing Hispanic population, so they were looking at five sites in New York and three in Pennsylvania.

Batavia having a nearly shovel ready park combined with the region's high number of quality dairy farms were attractive to Alpina.

"It kind of proves the thesis that you've got to have that shovel ready site that clusters industries or companies won't even come," Hyde said. "They won't take the risk. They've got to be able to build and go."

The project is part of a $50 million plan by Alpina to expand its business.

“We’ve been waiting for exactly the right moment to make a major push into the U.S. market, and today we found the right location to achieve our strategic goals,” said Alpina Foods, LLC, Managing Director Carlos Ramirez Zavarce.  

Below is a video the company produced for YouTube that has received more than 500,000 views.

This is the third in our series of stories about the 2010 Chamber of Commerce award winners. The awards will be presented at a dinner Saturday at the Clarion Hotel.

Like many small businesses, Triple P Farms in Oakfield started with a budding business owner seeing a need and believing he could start small and grow his enterprise.

Daniel "Pudgie" Riner, 52, was raised on a farm in Byron. After his father sold the family farm to the My T Acres, Riner spent 11 years working for the Call family.

He was pretty confident he could grow things. He had just never tried growing anything in a greenhouse before.

Shortly after marrying Patti Call more than 22 years ago, he opened Triple P Farms with a single 2,000-square-foot greenhouse.

Riner was encouraged by his brother and Craig Yunker of CY Farms to start with tomato seedlings.

"They were not happy with quality of transplants that they were buying out of the south and I thought I could grow something better," Riner recalled. "They gave me an opportunity to try and that’s what started the greenhouse business."

Today, Triple P Farms is comprised of more than two acres of greenhouses and he's adding on another 25,000 square feet. Triple P annually produces more than 12 million onion and cabbage plants for local farmers.

It's that kind of growth and contribution to the local agriculture community that led the Genesee County Chamber of Commerce to select Triple P Farms as 2010 Agriculture Business of the Year.

It's an award, Riner said, he finds humbling.

He credits his employees, his customers, his vendors and other members of the agriculture community, even his bank, for making the award possible.

"I always say, one of my biggest assets is the people around me who help make it work. I have the right team around me."

After more than 22 years in business, Riner said what gives him the biggest satisfaction are his employees. He keeps five full-time employees year around and employees 15 to 20 more people during the summer months.

"It feels pretty good that you’re doing something to help people survive."

He said people like his office manager, Debbie Lynch, who has been with Triple P almost from the beginning, and his retail store manager, Scott Fisher, are the ones who really get the work done.

"I don’t know how we could do it without the key people around that make it work."

In the summer, much of Triple P's staffing increase comes from Riner hiring young people.

Riner -- whose friends started calling him "Pudgie" when he was a teen and the nickname stuck -- said he likes new hires to be juniors in high school. It's hard, physical labor, but he enjoys working with youngsters, even mentoring them right through college.

"I always tell them, If you work for me you'll figure out why you don’t want to do this for the rest of your life. Go to college and get a brain."

About 11 years ago, Riner bought a retail nursery on West Main Street in the Town of Batavia from the Riegel family.  

He renamed it Pudgie's Lawn and Garden Center.

“They (the Riegel family) had a wonderful reputation and I’d like to think that we have continued that wonderful reputation of high quality plants that are locally grown. The lawn and garden store we call Pudgie's has been good to us and we try to add more and more to it every year. We have a very good customer base there."

All of the "bedding" plants sold at Pudgie's are grown at Triple P, giving gardeners a chance to buy locally grown plants from local plant experts (most of Pudgie's employees are master gardeners).

This year, Riner lost his pea-picking business as the frozen food industry has consolidated around just two harvesting companies (Riner said he's proud that his business was one of the final four out of a few dozen once upon a time), but he's already taking Triple P in a new, promising direction.

This winter, he and a partner, A.J. Wormuth, started growing cucumbers in the Triple P greenhouses to sell through area retail stores under the Fresh Harvest Farms brand.

The new line is off to a promising start and the time is right, Riner said, to expand into other winter-grown vegetables because of the strong consumer interest in locally grown produce.

"There’s a big push industry for local. The challenge is getting into the big box stores like Tops or Wegmans or Save-A-Lot, but with the impact of people pushing local, the door has opened a little more than in the past."

Riner and Patti have three children. One attends RIT, another is working on becoming a teacher and their oldest daughter lives and works in the Washington, D.C., area.

He said he and Patti keep most of their community involvement pretty low-key. They're active in Northgate Church and do what they can individually to help families and young people.

Patti supports the Cancer Society. She's twice survived cancer.

As he mentions her cancer battles, Pudgie chokes up.

“It still bugs me," he said, as his eyes moistened and his voice cracked. "You can tell. You can tell.”

In 1983, a Henrietta resident bought a small beverage company in Batavia with a vision for building a chain of stores that would offer customers a wide selection of handcrafted and imported beers.

Batavia Beverage Corporation became Angotti Beverage Corporation and Tony Angotti was on a path toward what is now three stores in the Rochester region, including the widely known Beers of the World in Henrietta.

That success has landed Angotti the prestigious honor of Small Business Person of the Year for the area's 14-county Small Business Administration district.

The Democrat & Chronicle published a story about Angotti today.

"I've always been a nut for imported beers and something different," he said Tuesday. "I always dreamed of something different, something that was not available in upstate New York. So I started bringing in beers, sometimes obscure beers, that nobody knew anything about and some are very well-known brands today."

...

"The population today is not like it was years ago when our fathers and grandfathers used to go a bar and say 'give me a beer' and didn't even know what they were getting," Angotti said. "To them a beer was a beer. But today we have a very sophisticated drinking population that is looking for something unique, something different."

Small businesses need help, according to Sen. Kristen Gillibrand, so today she announced a legislative package she believes will help small businesses start and grow.

Her plan would provide more federal grant money for business incubators, tax-free savings accounts for entrepreneurs and tax credits for investment in small businesses.

"The lack of early capital from the poor economy holds us (New York) back," said Gillibrand in a press release. "We need to support budding entrepreneurs, free up the credit they need to get their ideas off the ground, and invest in the kind of research we can turn into cutting-edge businesses and new jobs."

Gillibrand plans to introduce the Early-Stage Business Investment and Incubation Act, legislation to provide federal grants of up to $5 million for business incubators to support the development of early-stage small businesses in targeted, high-growth industries. 

Another legislative proposal, Small Business Savings Account Act, would allow aspiring entrepreneurs to save up to $10,000 tax free to later invest in a new business.

Gillibrand also proposes making from $250,000 to $2.5 million available for clustered science-tech parks to help drive high-tech entrepreneurship and job creation.

Full press release after the jump:

Washington, D.C. – While small businesses serve as the economy’s biggest job creator, creating half of all new jobs across the state, they are struggling to grow in this tough economy. To help kick-start the backbone of our economy, U.S. Senator Kirsten Gillibrand today announced her entrepreneurship agenda to help generate access to the capital needed to start more small businesses, and create jobs for New York.

The focus of Senator Gillibrand’s plan is directing more early capital to business start-ups through federal grants for business incubators, tax-free savings accounts for entrepreneurs, and tax credits to leverage private investment in new businesses. Senator Gillibrand is also fighting for greater investments in New York’s science parks that have the ability to turn groundbreaking academic research into viable businesses that can create jobs and help grow our economy.

“My number-one focus is creating good-paying, family-supporting jobs,” Senator Gillibrand said. “But I know that government doesn’t create jobs – businesses do. New York is home to some of the world’s brightest minds and best ideas to grow our economy. But the lack of early capital from the poor economy holds us back. We need to support budding entrepreneurs, free up the credit they need to get their ideas off the ground, and invest in the kind of research we can turn into cutting-edge businesses and new jobs. This is the future of our economy, and we need to make sure it starts right here in New York.”

Small businesses are responsible for half of all private sector jobs and 70 percent of all new jobs created in the last decade. But nearly 60 percent of all small business report having trouble getting the credit they need – holding them back from growing, and creating new jobs.

February employment data from the New York State Department of Labor show that while more Americans are slowly going back to work, approximately 800,000 New Yorkers are still unemployed.

·         Approximately 370,000 New York City residents are out of work, giving the region an average percent unemployment rate of 9.4%.
·         Approximately 64,000 Western New York residents are out of work, giving the region an average percent unemployment rate of 9.5%.
·         Approximately 52,000 Rochester/Finger Lakes Region residents are out of work, giving the region an average percent unemployment rate of 8.6%.
·         Over 50,000 Central New York residents are out of work, giving the region an average percent unemployment rate of 9.6%
·         Almost 25,000 Southern Tier residents are out of work, giving the region an average percent unemployment rate of 9.6%.
·         Over 47,000 Capital Region residents are out of work, giving the region an average percent unemployment rate of 9.2%.
·         Approximately 25,000 North Country residents are out of work, giving the region an average percent unemployment rate of 10.8%.
·         Approximately 87,000 Hudson Valley residents are out of work, giving the region an average percent unemployment rate of 8.2%.
·         Over 110,000 Long Island residents are out of work, giving the region an average percent unemployment rate of 7.7%.

Senator Gillibrand’s Entrepreneurship Agenda

1. Supporting Business Incubators that Fuel Entrepreneurship
One of the biggest obstacles for starting any new business is access to capital. As communities look for new ways to support local business development during tough economic times, increasingly more are looking to business incubators to help launch job creation engines. Currently there is a need for more federal mechanisms to support business incubators beyond “bricks and mortar” support. 

Entrepreneurs need support as they work to move their ideas into viable, successful new businesses that create jobs, revitalize neighborhoods, and commercialize new technologies that can help grow our economy.  

To support business incubators and foster growth among our high-tech entrepreneurs, Senator Gillibrand is introducing the Early-Stage Business Investment and Incubation Act, legislation to provide federal grants of up to $5 million for business incubators to support the development of early-stage small businesses in targeted, high-growth industries. Grants for incubators would go toward assisting start-up companies with comprehensive training and counseling services, investment management and purchased services.

Supporting entrepreneurs and business incubators is one of the best investments to rebuild areas of New York that were hit hardest by the economic crisis, and grow our high-tech sector.
·         Every $10,000 invested in business incubators has the potential to create up to nearly 70 new local jobs, according to the Economic Development Administration (EDA).
·         Every dollar devoted to an incubator generates approximately $30 in local tax revenue, according to the National Business Incubation Association (NBIA).
·         In 2005 alone, business incubators supported more than 27,000 start-up companies that provided jobs for more than 100,000 workers – generating more than $17 billion in annual revenue, according to NBIA estimates.

2. Tax-Free Savings to Fund New Small Businesses
Entrepreneurs spend on average about $80,000 in first-year start-up costs. But since the economic crisis, with minimal access to capital, debt financing for new businesses has been increasingly difficult to obtain.

As part of her broad agenda to help entrepreneurs develop the start-up funds they need to get their new business ideas off the ground, Senator Gillibrand is co-sponsoring the Small Business Savings Account Act, legislation to allow prospective entrepreneurs to grow tax-free savings to fund their new small business.

The legislation would allow entrepreneurs to save up to $10,000 a year tax-free for their business. Once an individual decides to start their business, the funds from their savings could go toward equipment, facilities, marketing, legal fees, and other capital and operating expenses. 

3. Tax Credits for Investments in Small Businesses
Private investment in new businesses helps fuel job creation, and helps entrepreneurs power through the common gap between the start-up of a company and the point it turns profitable. In 2008, companies backed by private investment employed more than 12 million people and generated nearly $3 trillion in revenue, accounting for 11 percent of private sector employment and representing about 21 percent of U.S. GDP. In 2009 alone, angel investments led to the creation of 250,000 new jobs. But since the economic crisis, private equity investment has dried up, holding entrepreneurs back from starting their businesses and growing our economy.

To leverage more private investment into budding entrepreneurs, Senator Gillibrand is co-sponsoring the American Opportunity Act, legislation to provide a 25 percent tax credit to encourage private investors to support emerging small businesses in fields with the most potential to lead in the high-tech economy, including advanced manufacturing, aerospace, biotechnology, clean energy and transportation.

Qualified small businesses could receive $2 million per year in tax credit-eligible cash equity investment, of which no more than $1 million may come from one single investor.

Estimates project the tax credit could spark $2 billion a year in private investments into new businesses. 

4. Expand and Build New Science Parks
Science parks hold the potential to make major breakthroughs in academic research that translate to promising new business ventures and new jobs. New York is home to some of the nation’s best science parks, including at Clarkson University, the University at Buffalo, Binghamton University, the College of Nanoscale Science & Engineering at the University at Albany, New York University, Stony Brook University, as well as New York City’s Bioscience Initiative that brings together over a dozen world-class research institutions and business leaders to grow New York’s bioscience industry. Its state-of-the-art facilities and leading research has helped secure over $1 billion in federal investments from the National Institutes for Health (NIH) and create over 110,000 related jobs for New York City.

To give all of New York’s science parks the resources they need and build more science parks across America, Senator Gillibrand fought for and helped pass a provision in the America COMPETES Reauthorization Act that supports new business start-ups, generates student interest in science and technology, and promotes strong relationships between universities and high-tech industries.

Now, Senator Gillibrand is working to secure federal investments to support the growth of science parks. Specifically, Senator Gillibrand is writing to Senate leaders, urging them to include $107 million in the FY2012 budget to help grow America’s science parks. 

5. Grow Regional Economies and Attract New Businesses
To grow the economy, businesses must work together and draw on regional strengths that can attract more investment to the area. To foster regional economic growth, Senator Gillibrand is working to pass the Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act – legislation that would award competitive grants ranging from $250,000 to $2.5 million to eligible entities to develop cluster-based economic development strategies. 

These investments are critical to connecting regional businesses, suppliers, research and development entities, education and training providers, and associated institutions in a particular field to fulfill regional workforce needs and grow regional economies.

From Eastern New York’s Tech Valley to Western New York’s biotech corridor, to New York City’s Bioscience Initiative, the SECTORS Act would provide critical federal investments to some of New York’s most promising regional cluster development projects, and lay the foundation for our state’s long term economic strength in the high-tech sector.

A pair of local entrepreneurs who plan to open a teen nightclub in the former location of PowerHouse Gym on East Main Street, Batavia, say a major financial hurdle has been overcome and they're ready to move forward.

After initially announcing plans in January, just two weeks later, the venture had to be put on ice when Tim Walton and Mike Marchese learned they would need to install a $50,000 sprinkler system in the 7,350-square-foot facility.

Walton announced this week that additional, unnamed, investors are now involved in the project and Walton and Marchese have $100,000 available for the project.

Most of that fund is being bankrolled by Walton and Marchese, Walton said, but the local investors are willing to put in more money if needed.

"We don't want to cut corners," Walton said.

No opening date was announced.

"We've got a plan, contract and partnership that allows us to have direct access to over 20,000 teens in Western New York," Walton said. "We're going all out to make this a success."

Walton also announced a partnership with local DJ Marc Tillery.

"The move to buy into the DJ company was a move I made to allow us to have our own disc jockey company rather than have to hire out," Walton said. "I partnered with Tillery as a way to have more access to the current music, club mixes and even recording artists. Tillery has some connections with Hollywood stars, EA Sports, Boyz II Men, New Edition and his most recent connection is Island Def Jam recording artist Kenny Klassix."

Walton and Tillery previously joined forces in local marketing, as Walton bought out Tillery's advertising marketing company and merged it with his screen-printing business, TopLine Shirt Company.

Meanwhile, Walton has also sold out his interest in the DJ operation at Falleti Ice Arena to Firland Management.

The ice arena DJ operation was a venture he had gotten involved with in 2001. 

"I had a great time doing it while I did," Walton said. "It was great working with Rich Nobles, Dee Gugel, Bob Filighera and everyone else."

This is the first in our series on the Genesee County Chamber of Commerce award winners. Today, we feature Robert Bennett, winner of Wolcott “Jay” Humphrey III Excellence in Community Leadership Award. The awards will be presented at a dinner Saturday at the Clarion Hotel.

It takes a truly selfless man to find ways to go above and beyond to volunteer in his community for more than 20 years but Robert Bennett swears that his countless hours of community service have rewarded him just as much in return.

He has served on a number of boards and organizations in Le Roy and Genesee County just because he likes the feeling of being productive and doing good things for good people.

“I’ve made some great friendships and relationships,” Bennett said.

“The kind where if they need something, they call you and if you need something, you call them.”

When he heard he was to receive the Jay Humphrey III Excellence in Leadership Award at the annual Genesee County Chamber of Commerce Awards Banquet, Bennett said he certainly felt humbled.

“What a great award. I was close friends with Jay – he and I worked on many different boards together. We’re old friends.”

Bennett used to work with Humphrey’s family at Wyoming County Bank. Although he’s remained in the banking industry, Bennett now manages the Le Roy Bank of Castile.

“My job at the Bank of Castile encourages everyone to get involved with the community,” he shrugged.

“Banking promotes getting involved…and there’s a lot of things that need your help but it’s not always the money. Anyone can write a check but sometimes it’s expertise, it’s running the projects or helping to guide these organizations.”

Bennett dedicates his time to the Genesee Community College Foundation and the college’s housing board. He’s been involved with United Way, the American Red Cross and he even helped develop the Le Roy Business Council. He is an active Le Roy Rotarian and a past president. He has coached sports teams, helped with Easter egg hunts, appliance raffles and various fundraisers for a number of different causes.

He plans to continue to make service to his community a priority and is currently looking forward to the annual Easter celebration in Le Roy, helping to choose which deserving graduating seniors will be awarded scholarships through the Le Roy Rotary, and working with the GCC foundation.

“If I get involved, I’m usually trying to just do something,” Bennett said.

“It’s not to be a member or a board director…I’m a people person. I just try to make a difference.”

Photos by Howard Owens