Business

Saying solutions to the state's dairy crisis can't wait until the 2012 Farm Bill, Sen. Kirsten Gillibrand today unveiled a comprehensive plan she claims will provide farmers with immediate support.

That can't happen soon enough according to those in the industry. New York State lost nearly a quarter of all its dairies during 2002-07, according to information Gillibrand included in her news release, dropping from nearly 7,400 to about 5,700 five years later.

The number of Genesee County dairies dropped from 98 to 68, a 31-percent decline.

“New York is home to the hardest working farm families and the finest dairy products in the world, but outdated regulations, broken pricing structures and a bad economy are hurting our dairy farmers, and farming communities across the state," Gillibrand said. "We need to act now to support New York’s dairy farms.”

The full specter of the problem was gleaned after the senator held six agricultural "listening sessions" statewide in preparation for next's year farm legislation.

"I appreciate the senator taking the the time to have listening sessions for the dairy industry and for trying to help New York dairy farmers," said Dean Norton, an Elba dairy farmer and president of the New York Farm Bureau. "I look forward to working with her in preparation for the 2012 Farm Bill."

Gillibrand's plan intends to: make dairy pricing more competitive for New York producers; prevent cuts to the MILC program; help boost exports; improve storage reporting standards; and increase trading price stability.

The current pricing system is obscure and the discouraging result often means dairy farmers pay more to produce their products than they get from selling them.

Farmers say the high costs of feed and fuel make even the existing safety net -- Milk Income Loss Contract (MILC) -- inadequate. Further cuts would increase the numbers of farmers taking on massive debt to cover their costs or go out of business.

Gillibrand is urging the federal Department of Agriculture to collect and publish data on alternative measures of dairy pricing, such as competitive-pay pricing, "so that everyone can see if this would be a better way to price milk." The current system of end-product pricing has reportedly contributed to more volatility in milk prices for producers.

Under a competitive-pricing scenario, the price of milk would be determined by a survey of prices paid to farmers for the milk used in cheese production in a competitive market wherein there are counties with at least five different milk buyers.

New York is one of only three states with competitive counties today.

In noncompetitive areas, the existing Federal Milk Marketing Order (FMMO) system would take effect, however base prices would still be established by the competitive-pay pricing system.

To both improve America's milk quality and boost exports, the senator wants to lower the most basic measure of milk quality -- known as somatic cell counts -- so milk has "a longer shelf life, better taste and greater cheese yield."

Another area needing reform, according to farmers are the inventory methods for certain types of cheese, which can "significantly influence trading activities on the Chicago Merchantile Exchange."

For example, cold storage facilities are not required to report their inventories of dairy products to the USDA Natural Agricultural Statistics Service (NASS), and only do so on a voluntary basis. This purportedly creates an environment of volatility and uncertainty for dairy trading.

Senator Gillibrand is introducing legislation that would make the Cold Storage Report to NASS mandatory, and give the USDA authority to audit warehouse inventories to help bring more stability to dairy trading prices.

She is also introducing the "Democracy for Dairy Producers Act," which would require dairy cooperatives that engage in bloc voting to provide their member farmers with written notices and other information when certain kind of votes occur.

The bill also would establish an information clearinghouse to provide information regarding any proposed milk marketing order reforms. The information would have to be published on a Web site and distributed to producers through a fax list, e-mail distribution list, or U.S. mail list, at the discretion of individual producers.

The sturdy red brick building at the corner of Center and Main streets was built by Batavia's Masons in 1908 and has been their home ever since.

That will change this summer.

Members of Batavia Lodge No. 475 of Free and Accepted Masons have made the difficult decision to leave their finely crafted and ornate temple to merge with the Olive Branch Lodge in Le Roy.

Jim Rosenbeck, master of the 151-year-old lodge, explained that since the Batavia Masons' lease expires this year, they are working on a merger with Le Roy to hopefully, "...get greater strength in numbers and get a higher profile for Masonry by merging and doing collaborative things."

In the process the lodge -- formed on April 9, 1859 -- will be dissolved.

The move is necessary because it's not financially viable for the 50-member lodge to pay rent. The lodge has occupied the building rent free for at least 15 years.

Rosenbeck said he wished nothing but the best for the Masonic Temple building and hoped that owner David Howe could find the right tenant to take care of it in the future.

Howe, who also owns Charles Men's Shop, acquired the building 15 years ago.

He gave The Batavian a tour of it earlier this week.

I was most impressed with the look of the "Lodge Room." Walking through the double doors and into the great hall, a view of throne-like chairs at the opposite side gave an almost humbling feeling. History seems to ooze out of the cracks of the walls in that place.

Theater seats line the sides of the great hall and a balcony that once held a pipe organ overlooks the room. The carpet is a fittingly ornate pattern and one of the earliest of "dimmers" can be found hulking underneath the light switches. When the giant crank is turned, the lights soften to a haunting glow.

"I love the history of this building and anything historic -- anything that is bigger than life," Howe said during our tour.

From the beginning, the Masons rented the first floor of the building to retail businesses and the second floor has always contained rented office space -- mostly used by attorneys until a few years ago.

The third and fourth floors have been shared by the Masons and Blue Pearl Yoga.

What happens next, Howe isn't quite sure.

He guessed that a theater group could work well, and apartments are possible, but improvements will be needed with either scenario.

At the time Howe acquired the building, the roof was in bad shape and a portion of the southeast corner of the building collapsed down to the basement. That's all been fixed, but other repairs are yet to be made.

As for the Masons, making tough choices to ensure their survival certainly isn't a new thing. The Le Roy Masons sold their lodge to make way for a Walgreens a few years ago, and after months of searching, decided to make 12 Bank St. in the village their new gathering place.

Historically, the Masons have found ways to keep their society thriving despite hardships. Former Holland Land Office Museum Director Patrick Weissand tells an interesting tale of William Morgan -- who learned the Masons' secrets but wasn't allowed to remain part of the lodge because he had a tendency to "shoot off his mouth" after drinking too much.

Although no one can prove exactly what happened to Morgan -- historians do know he was kidnapped and silenced after threatening to publish a book about the rituals of the freemasons. Weissand tells the riveting tale in a three-part video series here.

Although the Masons may have been a secretive society with an alleged political agenda in the past, Rosenbeck says that isn't what being a Mason is about.

"Basically, we are a benevolent organization that makes good men better," he said. "One of our goals is to provide services to the community that we're in and it's been sort of an issue with us lately because we have so few active members to do anything meaningful."

A good portion of the Batavia lodge treasury will be donated to local charitable groups, once the lodge disbands, Rosenbeck said. The rest will go to the Le Roy lodge, probably to help with construction of a kitchen there.

Rosenbeck says they do their best to donate to worthy causes. He pointed out that in order to be a Mason, one criteria is the belief in a Supreme Being.

"It's unique that the brotherhood of Masonry doesn't discriminate between religions. Christianity, Catholics, Muslims and Jewish beliefs and a few others can become Masons.

Rosenbeck said he regrets having to leave "the glorious old building" but it was a choice made out of necessity.

"Our decision to merge and join Le Roy has nothing to do with our feelings towards David Howe or the lodge building. We are going to really miss the beautiful place but this is something we need to do for our survival."

The permanent fixtures of the building -- such as distinctive door handles and the carved wood of the temple -- stay with the building. But the Batavia lodge owns all of the furniture -- such as the palace-like chairs in the temple and the two couches in the hallway -- and those will be taken to Le Roy. 

Photos by Howard Owens. Top, interior of the Masonic Temple. First inset, Jim Rosenbeck and his son Mike Rosenbeck. Mike is the last member of Lodge No. 475 to complete his Third Degree and sign the charter. Other insets, details from inside the building. Postcards provided by Dave Howe.

Ken and Andrea Mistler have made some big changes to their former coffee and smoothie shop at the corner of Main and Jackson streets.

The former Daily Grind is now Espresso Salads and Subs.

Ken Mistler said it was time to expand what the shop offered. While a prep area has been added for food service, much of the food prep -- including baking fresh sub rolls daily -- takes place at Mistler's other food establishment downtown, South Beach Restaurant.

Andrea manages day-to-day operations for the  sub and salad shop.

Subs and salads are made to order with fresh ingredients.

For the coffee and smoothie crowd, the full selection of the Daily Grind remains on the menu.

Mistler has also added free wi-fi and there are now leather chairs and couches available for customers. In the summer, Ken said, he will add outdoor seating.

Margarita's Mexican Restaurant on Jackson Street has closed.

Owner Carlos Hernandez was not available for comment today.

NOTE: If you bought a Margarita's gift certificate from The Batavian within the past 30 days, return it to us for a refund. No refunds will be issued without return of the physical gift certificate and the purchase must have been made in the past 30 days.

A public hearing has been set with the Town of Batavia Planning Board to discuss a proposed change to the location of Oil Doctor, 4003 W. Main St. Road, Batavia.

Owner Ben Thompson has requested permission to convert a portion of the existing building to an area for motorcycle sales.

The hearing will be at 7:30 p.m., March 1, at town hall, 3833 W. Main St. Road, Batavia.

A copy of the application is available at town hall for review.

Construction has begun on a $2 million project to add an indoor water park to the Clarion Hotel on Park Road, Batavia.

Owner Chan Patel (above) said he is looking forward providing year-round recreation to the region. He expects to draw customs from Buffalo and Rochester, not just Genesee County.

"We have a big staff," Patel said. "Even in the winter, we have 60 people on staff. During the summer there's plenty of work, but in the winter I have to cut down their hours. It's not fair because they have to support their families, too."

The 12,000-square-foot facility -- Palm Island Indoor Water Park -- includes a 197-foot and a 169-foot water slide, a pool equipped with basketball hoops, a spa, a play lagoon with waterfalls, small slides and dumping buckets, as well as birthday party rooms, a food and beverage concession and an arcade room with 15 games.

Patel said he planned the park so that there would be activities that would appeal to all ages.

"This will bring more business into town," Patel said. "It will be a benefit to the whole community."

He's even partnering, he said, with local businesses to help ensure his guests patronize those businesses.

He's also using local or regional contractors. The design was completed by Smart Design, of Batavia. Whitney East, of Rochester, is the general contractor, and Batavia's Arctic Refrigeration is handling all of the mechanical work.

The project received tax abatements from the Genesee County Economic Development Center worth about $91,600. That includes partial abatement of property taxes for 10 years worth $18,800, a mortgage-tax abatement worth $12,800, and exemption from sales tax on materials for construction of the park worth $60,000.

GCEDC estimates the $91,600 in tax abatement will have more than a $5 million multiplier-effect benefit for the local economy.

This story is based on information provided by Pavilion-based Syntec Optics.

Syntec Optics is hard at work on a project that could revolutionize the way we interact with computers. It's the nation's largest independent manufacturer of custom plastic lenses whose motto is “Precision Plastic Optics for Tomorrow’s Technologies."

The Pavilion-based company is working on the Eye-Com EC7T™ eye-tracking system -- designed and developed by Eye-Com Corp. This advanced eye-tracking platform uses frame-mounted microcameras to not only record eyelid and pupil activity, but also to track head movement. The integrated, wearable system is a versatile device with all video, lighting, and electronic components encased within the uniquely designed, unobtrusive eye frames.

Even in a universe of lighting-quick technological changes, this stuff is mindboggling. (Perhaps a bit "Borg-like" -- but in a good way.)

Entertainment, transportation and disability-assistance industries are among those expected to be significantly impacted by advancements in eye-tracking and biometric technologies such as this.

In the rapidly emerging "augmented-reality" industry, people are presented with information about their surrounding environment through various visual displays, including computers, TV screens, smart phones, or even through a pair of eye-tracking glasses with a heads-up display.

In the foreseeable future, a user wearing an eye-tracking device could look at a building such as a movie theater and be presented with information like show times or even watch movie trailers.

Imagine driving a car that has eye tracking, augmented reality, biometrics and oculometrics all integrated -- where the system is able to determine if you are in a traffic jam or cruising down the highway -- and selectively allowing phone calls to go through based on your level of fatigue, stress or the amount of attention needed to be devoted to the road.

“In the near term, the EC7T will enable many disabled individuals greater use of computers with a device that can be used in place of a traditional mouse and allows them to use their eyes to select objects on the screen," says Eye-Com Founder William C. Torch, Ph.D.

Syntec Optics has been working with Eye-Com for more than a year and is currently manufacturing and assembling the set of plastic optics used in the EC7T.

Since the device is worn by the user, the optics need to be light in weight. Using plastic as opposed to glass made sense. Syntec was able to produce a set of prototype lens from Zeonex E48R™.

One of the challenges was the size of the lens, which is roughly 3 millimeters in diameter according to Syntec Optics’ VP and General Manager Rick Arndt.

“We have significant experience manufacturing and assembling small optics but as technology progresses, we see parts getting smaller and smaller,” Arndt said.

As for the technology itself, Eye-Com CEO Ky Good says “Eye-Com’s eye-tracking technology has established a new level of biometric performance with both advanced hardware and innovative software, which offers a platform for the future.”

The EC7T provides a mechanism and platform for enhancing applications that have yet to be imagined. Good believes that the device will eventually integrate optical, audio and neural sensors that will drive many applications in the next 10, 20 to 50 years.

“Our intention,” he explains, “is to leverage and collaborate with many companies, ideally bringing those pieces together to provide a cost effective, usable product for a multitude of end-users.”

("Make it so," said the captain.)

To find out more visit <http://www.eyecomworld.com> or <http://www.syntecoptics.com>.

If all goes well, Genesee County could become a foreign-trade zone by year’s end.

That would be a boon for some local companies, including those looking to grow their business in international markets because it evens the playing field with foreign competitors, according to proponents.

The Genesee County Economic Development Center Board has approved a request to take the initial steps to establish a foreign-trade zone (FTZ) here.

Although this has been in the works for some time, new federal rules have made it easier to move forward, according to Chris Suozzi, vice president of business development at GCEDC.

The application process takes about eight months and it’s quite extensive. Applicants are screened by the Foreign Trade Zones Board of the U.S. Department of Commerce.

"The whole county can be deemed a foreign-trade zone, instead of targeted areas of the past,” he said. “We would act as a public utility. There are fees associated with this for filings, attorney fees, application fees, etc. Those numbers aren't known yet. That will be part of the application process.

"Each (business) applicant has to be able to recoup those costs – realize at least $10,000 in savings – to justify participation.”

A business would have to do its own due diligence to determine if the math works in its favor, Suozzi said.

There are several economic advantages of a FTZ, including reduced customs, deferral or avoidance of duties and federal excise taxes, tariff inversions, weekly customs entry and reduced value on scrap, waste and obsolete products.

Participants are able therefore to reduce the costs of doing business in the United States – distribution, manufacturing as well as non-manufacturing activities – thereby reducing the attraction or need to do business at a foreign site. Companies also have an opportunity to grow sales through increased exports.

The GCEDC maintains that not only will existing companies stand to benefit from a FTZ, but it will serve as an incentive to attract other companies. GCEDC officials are exploring the possibility of expanding the trade area to the entrie GLOW region, which includes also includes Livingston, Orleans and Wyoming counties.

"A lot of U.S. companies can grow their sales internationally, instead of maintaining the status quo, they can grow both by retention and the attraction of new businesses,” Suozzi said.

Liberty Pumps is an example of one local manufacturer that is keen on establishing a FTZ. Suozzi said he would like to meet with any business interested in learning more about foreign-trade zones.

"We’ll set up a meeting and walk you through it,” Suozzi said. He can be reached at (585) 343-4866, ext. 11, or e-mail to csuozzi@gcedc.com.

City DPW workers were busy Monday night in Downtown Batavia. Crews hauled off a good deal of the snow that was blocking walkways between parking and the sidewalk along Main Street. Tim Walton supplied the picture below of the snow removal.

If you're a landowner with at least 200 acres in the Batavia area, here's your chance to sell it.

The U.S. Department of Veterans Affairs is trying to secure a plot of land that is central to Buffalo and Rochester for a new veteran's cemetery, according to a report in the Buffalo News.

When it was pointed out that most of the land east, west, north and south of Batavia is wide open, he said, “Apparently no one wants to sell.”

At present, the closest VA cemetery for those who have served in the armed forces is more than 100 miles away in Bath.

The parcel being sought by the VA needs to be within seven miles north or south of the Thruway and no farther than 20 miles east of the Thruway and Route 77 or 18 miles west of that rural crossing.

Prospective sellers -- even a mile outside the boundaries -- should call Gary Rothfeld, a VA real estate official at (202) 495-5534.

The deadline for proposals is Feb. 16.

A pair of Batavia hotels are getting some tax relief through the Genesee County Economic Development Center because they are installing new energy-efficient doors and windows.

A GCEDC news release says the project will mean 21 retained jobs.

The Days Inn and Super 8 at 200 Oak St., Batavia, are expected to spend more than $220,000 on the project.

The owners will save about $9,000 in sales tax on materials under terms of the GCEDC arrangement.

Vic Marchese, owner of Main St. Pizza Company, was excited to get an e-mail today of a Sri Lanka resident wearing one of his T-shirts in the country once known as Ceylon. He said a friend sent the Sri Lankan the T-shirt and arranged for the picture.

If Steve Hyde said it once, he said it at least a half-dozen times Tuesday during a public hearing on providing tax incentives for a proposed Holiday Inn Express in Batavia: The Genesee County Economic Development Center wants the input of other hotel owners on the potential economic impact of the proposed project.

"We are most interested in your views on what’s going on in the marketplace so we can share that with the board and they can give it thoughtful consideration," said Hyde, CEO of the GCEDC, near the end of a sometimes slightly contentious public hearing.

About a dozen local hotel operators attended the 4 p.m. meeting.

Typicall at such hearings, members of the public speak, officials listen with little or no response and the meeting ends. But Hyde repeatedly engaged speakers, either with questions or by challenging them to deliver more facts.

"If you have additional facts from validated sources that can justify your position, you should present that to us," Hyde said. "We hear you loud and clear but we need you  to provide us with verified facts."

The meeting opened with Mark Masse, VP of operations for GCEDC, presenting an overview of the proposed project and the proposed tax incentives the GCEDC can help deliver.

The developer is Michael Patel and an investment group, Chase Hotel Group, which operates in four states and eight markets. Previously, Patel owned and developed Comfort Inn in Batavia and he currently owns Hampton Inn in Batavia.

The proposed hotel would have 80 rooms and cost $3.5 million to develop.

When completed, the hotel will employ 19 full-time equivalent staff members.

Under the tax abatement proposal, Patel and Chase Hotel Group would receive $112,000 in sales tax exemption, a mortgage tax exemption of $37,500 and a property tax abatement over 10 years of $400,136.

These are taxes, according to Masse, that won't be generated if the project isn't built. 

There will be no tax reduction -- meaning no abatement of existing taxes -- for existing tax liabilities on the property.

If the project is built, it should generate more than $800,000 in sales tax over 10 years and $38,700 over 10 years in fire district fees.

The total economic benefit to the community over 10 years is estimated at more than $8.5 million.

Local hotel owners took issue with these numbers saying the figures don't account for lost business, not to mention the potential closure, of existing hotels.

"You say after the Hampton Inn opened there was an occupancy increase," said Chan Patel, owner of the Clarion Inn on Park Road (formerly the Holiday Inn). "I can prove to you that over the next two years, my occupancy went down by 10 percent."

The operators who spoke said they've all seen occupancy rates drop as new hotels have come into the market and they don't see how a market with a 48-percent occupancy rate in market with 1,000 rooms will benefit by adding 80 more rooms.

Jayesh Patel, owner of Travel Lodge, Batavia, argued, as did other hotel owners, that more rooms will mean that all of the hotels will wind up charging lower rates. The Holiday Inn Express, he said, with the benefit of tax breaks, would then have an advantage over established hotel owners who are paying all of their taxes.

"If the developer has faith in the market then they should spend money out of their own pockets rather than out of taxpayer pockets," Jayesh Patel said.

Rashi Dev, owner of the Comfort Inn, said if Michael Patel believes there is such a need for more hotel rooms in Batavia, why is he charging rates at his other property, the Hampton Inn, that are as low or lower than similarly priced hotels in the area.

"The Hampton Inn should have rates $5 or $10 (per night) higher than us," Dev said. "If he's so confident in the market, why does he need to decrease his rate?"

There were no GCEDC board members present at the meeting. GCEDC staff will present the feedback from the public hearing to the board prior to the board voting on the proposal at its March 3 meeting.

Hyde said any factual information hotel owners can provide at least two weeks prior to the March 3 meeting will also be presented to the board and that hotel owners will be given a chance to speak at the March 3 meeting.

Today, Town of Batavia also announced a public hearing on the project with the town's planning board at 7:30 p.m., Feb. 15.

Top photo: Steve Hyde; inset, Chan Patel; bottom, Mark Masse opening the meeting.

When building the Upstate Medtech Center, the GCEDC should have ensured prevailing wage was paid to construction workers, according to a state Department of Labor (DOL) letter issued in November.

The letter came to light following an Authorities Budget Office report critical of GCEDC's staff compensation practices.

It was written by John D. Charles, associate attorney for the DOL, and issued in response to an unnamed person who asked that the department look into the matter. It concludes that the department's opinion was based solely on the material provided by that person and should not be relied on as a final answer.

Ask for a response to the DOL letter, GCEDC CEO Steve Hyde issued the following statement:

"While the LDC (Genesee Gateway Local Development Corp.) wholly disagrees with the Department of Labor's initial conclusions, we are actively working with them to ensure that they have all of the facts and circumstances of the Medtech project. A final determination has not been made by DOL with respect to the issues and questions raised."

Longtime local contractor Vito Gautieri is known to be concerned about how the bid for construction of the Medtech Center was awarded. It ultimately went to Batavia-based D.A. Tufts Co.

In an interview last week, when asked if the letter from Charles was addressed to him, Gautieri said, "No comment."

He then went on to complain about GCEDC forming a nonprofit corporation -- Genesee Gateway Local Development Corp. (GGLDC) -- as owner and agency developing the project. He said if that's how government agencies are going to operate on construction projects, then "we might as well pull up our shingles and move out of town."

At issue is compliance with New York's prevailing wage laws, which require employees on public works projects to be paid an hourly rate based on a prevailing wage schedule set by the state.

The DOL letter says that according to information given to the agency, the GGLDC's Medtech project does not meet the standards for waiving prevailing wage.

It says that because the project was at first initiated by a public agency (GCEDC wholly owns the GGLDC and is the project's actual owner), it is not just a temporary title holder.  In addition, it is not acting "merely as a mechanism to facilitate financing." If it were just a temporary titleholder and holding title merely to facilitate financing, according to the letter, perhaps paying prevailing wage would not be required.

A plan to open a teen nightclub on East Main Street, Batavia, has hit a snag.

Tim Walton and Mike Marchese Jr., who planned to partner on Impulz Teen Nightclub, discovered through the planning process that their selection location requires a sprinkler system for the planned use.

The building is 7,350 sq. ft. and because the maximum capacity for the building is more than 100 persons, code requires a sprinkler system.

Not just any plumber can install it, said Walton. The cost could top $50,000.

"Right now we got a price and it's looking like it's gonna cost an additional $50,000," Walton said.

The partners are going to look into getting a price for a dry sprinkler system and see what the pricing and regulations would be on that.

"If the price can't drop any lower, then I would have to go back and refigure some numbers. Those numbers would have us into this well over $100,000 and I would have to be sure it would workout."

Walton and Marchese aren't ruling out opening the club, even at the original planned location at 624 E. Main St., but feel that current circumstances will make it difficult.

"If it's meant to happen it will play out." Walton said. "If not, then there will be other opportunities."