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Wednesday, June 5, 2013 at 5:45 pm

Hancock responds to questions about her endorsement of COR Development subsidies

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.

Tuesday, June 4, 2013 at 9:56 pm

Bank of Castile celebrates 20 years of doing business in Batavia

post by Howard B. Owens in bank of castile, batavia, business

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."

Monday, June 3, 2013 at 11:05 pm

GCEDC CEO out of the spotlight during ceremony for big yogurt plant he helped put on the map

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."

Monday, June 3, 2013 at 9:53 pm

Officials optimistic about yogurt and Genesee County with opening of Muller Quaker plant

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.

Sunday, June 2, 2013 at 5:37 pm

During stopover in Batavia, DiNapoli says IDAs should not broadly interpret law on tax breaks for retail

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."

Sunday, June 2, 2013 at 2:44 pm

Photo: Bills defense players make appearance at City Slickers

post by Howard B. Owens in batavia, business, City Slickers

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.

Saturday, June 1, 2013 at 3:17 pm

Photos: Artisan Market at Harvester opened today

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.


 

Friday, May 31, 2013 at 5:16 pm

UMMC urgent care in Le Roy closed for two weeks for plumbing repair

post by Howard B. Owens in business, Le Roy, UMMC

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.

Friday, May 31, 2013 at 3:45 pm

Execs from urgent care company say new clinic in Batavia to be first of its kind in nation

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.

Thursday, May 30, 2013 at 9:44 pm

The future of a Wegmans in Batavia hinges on the success of STAMP in Alabama

post by Howard B. Owens in batavia, Alabama, business, STAMP, Wegmans

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.

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