Business

Though a retired physician living in Florida I am a native Batavian with more than a passing interest in the discussion of the taxation issue involving the L.B. Grand restaurant in LeRoy.

After giving considerable thought and engaging in review of some New York State journals and available news reports I made the effort to read  some of the formidably redundant tax code.  Then, following a quick review of statistical methods, I made an unsuccessful attempt to obtain the statistical method employed in the state Tax Code.
Any questioning of the bureaucracy,as you could guess, resulted in the usual government endless merry-go-round.

Some facts however did surface and these I want to share so the New York State Department of Taxation motives will be a little more transparent.

Years of state deficits and unbalanced budgets have created the need for the Tax Department to collect more so that cuts in budgets could be avoided.  In New York there exists a budget deficit greater than $8 billion dollars.

The top tax  enforcement official, William Comiskey, with the backing of Legislators and Govenor Patterson have unleashed the Department of Taxation and Finance to radically increase the number of audits on small businesses to build the state coffers.

Thus far the goals do not imply anything unreasonable.  However, the methods utilized and the individuals who have been hired in increasing numbers to levy these audits create serious skepticism.  Dubious sampling methods defy statistical plausibility.  These methods include one day samples which are inexplicably extrapolated to define years of income.

That method would be tantamount to estimating the average daily temperature in Batavia, N.Y. by taking a sample of one day then applying it to all days, in all seasons, for three years.  Sound crazy?  It is!   This method may be employed if a small business cannot produce records that the Tax Department considers acceptable and that includes receipts that have been carefully saved but have faded because the vehicle was thermal paper.  Such is the case with L.B. Grand Restaurant.

As stated by a N.Y. tribunal ruling on such a case, “A lack of records does not equate to a presumption that taxable sales have been underreported.  This does not give the division carte  blanche to simply extract convenient mumbers from an index and use them in a manner for which they were never intended.”

The target of such oppressive techniques would  be forced to resort to legal help at a huge  expense.  In many instances this has resulted in dismissal of the claims made by the Tax Department.  In the case of L.B Grand an alleged underpayment of sales taxes amounts to $247 thousand over three years has been decided even though gross receipts are approximately $500 thousand per year.  Sound crazy?  It is!

Involving tax attorneys would be certain to alleviate and possibly get rid of the charges.  Isn’t it amazing that a charge made with certainty by the State could almost inexplicably be made to go away?  Isn’t that a scary concept?   Pay the bill to the state or get a lawyer and he could make it disappear----for a staggering sum paid by the accused to preserve innocence.

Where does this place the small business owner?  I will not pander  your emotions though the overwhelming  mental anguish and suffering of  the innocent is palpable to me.

Think it over.  Can all of this really be happening?   In America?

New York is apparently turning over every stone in an effort to find more revenue to help close its billions in annual budget gaps.

They're now going after restaurants and bars, trying to find a reason to demand more money from the business owners.

Three weeks ago, L.B. Grand in Le Roy got hit with a $247,000 bill for back taxes and penalties.

"I had a nervous breakdown," said co-owner Ron Shoemaker. "I did. I had to go to the hospital. I just lost it. I said, 'My God, I couldn't pay that kind of money if I took the rest of my life.' The place doesn't make enough money to pay that."

The bill was based entirely on a one-day audit on a Thursday in January.

That day, 81 percent of the customers paid cash. Shoemaker said the restaurant and bar's average is 54 percent (he's double checked this figure by reviewing monthly records going back to 2008).

That 27-percent difference is significant to the state. If L.B. Grand were indeed doing 81 percent cash business on a daily basis, that would mean the 40-year-old landmark restaurant was under reporting its total revenue. The state would suspect a restaurant owner in that situation of pocketing all of those extra tens and twenties that aren't showing up in its cash report in order to avoid sales tax.

Shoemaker said he's kept meticulous books and has paid the State every dime the restaurant owes.

His partner, Ron Piazza, said Shoemaker is the kind of guy who can't stand to leave a bill unpaid or for his accounting to go undone.

What got L.B. Grand into this mess, though, is that Shoemaker didn't know he was required to save every guest check (the slips of paper waiters write customer orders on).

When a state auditor found this discrepancy in September, he scheduled L.B. Grand for a random, unscheduled on-site audit.

Six auditors descended on L.B. Grand (the state has hired hundreds of new auditors for this process) and just hung out. One guy sat at the bar, working a crossword puzzle, and  watching every transaction. At the end of the day, Shoemaker provided him with a print out of all that day's business.

It was a fairly average business day, except for the higher than normal amount of cash transactions, Shoemaker said.

Not only can't Shoemaker and Piazza pay the tax bill, they said, they're ready to fight back.

"I don't feel like I owe them anything," Shoemaker said.

Piazza said that while it's no laughing matter, that's about all he can do.

"I can't take it as seriously as he does," Piazza said. "It (the assessment) is just so foolish. They might as well put a one in front of it. It's just foolish."

Shoemaker, who spent seven years in the military and 30 years in skilled jobs before getting into the restaurant business, wonders what the state might have to gain by putting the Main Street eatery and tavern out of business. He figures that between off-track betting, lottery and sales tax, L.B. Grand generates $600,000 a year in revenue for New York, and that doesn't count the taxes paid by six employees who would be out of work if the tax bill holds up.

L.B. Grand isn't alone in facing aggressive auditing by the state, and the story of another restaurant gives Shoemaker and Piazza a glimmer of hope that they can fight the taxation department and win.

Mark Supples, owner of Mother's Restaurant on Virginia Place in Buffalo, also failed to keep his guest checks -- he estimates he would have been storing more than one million from the six previous years if he had -- and was hit with a $1.1 million tax bill after his audit.

"The methods they use are very similar to methods that were used by La Cosa Nostra, also known as the mob," Supples told WGRZ. "What they do is come up with a figure that will really scare you, then they settle for a lesser figure. So basically it's an extortion practice which is really quite effective because the figures they come up with are pretty scary."

The state offered Supples a $250,000 settlement and Supples declined. Instead, he spent $150,000 on legal fees (money he hopes to recover from the state) and won.

From WGRZ:

"When you go to (tax) court, you're presumed guilty and you have to prove you're innocent," Supples said.

In particular, (the court) found that for Supples to have done the volume of business and made the kind of money the state had estimated, every table in his restaurant would have had to have been full for eleven hours a day, seven days a week, for six years.

"I really thought it was time somebody stood up to these bullies and extortionists and expose them for what they are, and because of my case, the state has changed its methods," Supples said.

For its part, New York admits that the new aggressive audits (it's rarely enforced the requirement to keep guest checks before) is being done to help close budget gaps.

Even so, William Comiskey, deputy commissioner for Tax Enforcement, didn't express a lot of sympathy for bars and restaurants that aren't keeping guest checks.

Comiskey said: "We encounter a lot of businesses that tell us they don't have those records, and I'm frankly a little perplexed by it, because they would need the records we're looking at and asking for to run their business properly. But either way, they're required under the law to maintain them, and so I think it's reasonable to require them to have those records."

L.B. Grand is now keeping those guest checks, Shoemaker said. They had their cash register vendor reprogram their machines to print out all of the guest checks at the end of every day so that can be filed. But like many restaurants, the guest checks will be printed on thermal paper, so the ink will fade away to nothing within weeks. But at least the guest checks will be saved.

"I went from having a nervous breakdown over this, to now I'm just mad," Shoemaker said. "I'm going to fight them on this with every breath I have left in my body."

Mike Ognibene has operated a car sales business in Oakfield for about five years, but in the past several months his, and his family's, business interests have expanded to include a hair studio, a gym, real estate and a car wash.

"I really like the Village of Oakfield," Ognibene said. "The people of Oakfield have welcomed us with open arms. I can’t say enough about the people of Oakfield. They were glad we put the gym in. I think they appreciate that there is investment in their community."

Ognibene, owner of Crazy Cheap Cars, is clearly proud of his daughter Jennifer Ognibene, who with partner Samatha Hilchey, opened Hair Studio 25 on Main Street a few months ago.

Jennifer was studing physical education at GCC when she started learning hairstyling at Continental School of Beauty and found it was a profession she really enjoyed.

"It’s what I love to do," Jennifer Ognibene said. "It’s exciting to me to do people’s hair. I especially like doing color because you get to see the results after it’s done."

The hair studio is in the same building as Mike Ognibene's wife's real-estate business, Big O Realty, and Mike's new gym.

Soon the gym, which takes up space at the front of the building with a big window facing Main Street, and the hair studio will share a sauna and tanning booth.

The gym, Ognibene said, was really the product of having an appropriate space but no other business stepping forward to rent the space. He saw an opportunity for an exercise space in Oakfield and decided to buy the equipment and open a gym.

"I wanted to make it a lot of cardio because a lot of people want cardio," Ognibene said. "Then I wanted a universal gym because I didn’t want big bars and guys trying to over  lift. We don’t have a straight bar where there could be any risk of injury, because (people) can come in and leave on their own, 24-hours-a-day, seven-days-a-week. I thought (a universal gym) would be safer.

Six-month-old Jaylynne, with her mother Tesla Greck, met the Easter Bunny for the first time today at Oliver's Candies. The Easter Bunny made a special guest appearance at Oliver's today and gave out candy to dozens of children who came by for a visit.

Are New York's dairy farmers being harmed by possible monopolies in the milk-processing industry?

That's one of the questions the nation's top anti-trust cop will try to answer when she meets with a group of dairy owners at Genesee Community College at 11 a.m., March 27.

The meeting isn't a hearing, but Assistant Attorney General Christine Varney will be on hand to hear directly from farmers what complaints they might have regarding alleged price fixing.

New York Farm Bureau President Dean Norton said the farm bureau has been working on getting farmers to the meeting, but he doesn't have a position on whether there are monopoly practices in the industry.

"I can't say yes or no to that question," Norton said. "There are some people who believe there are monopolies in the industry, but I don't know if there is any hard evidence to prove it. That's one thing I guess Varney wants to find out."

Sen. Charles Schumer helped arrange the meeting after learning that Varney has been working on anti-trust issues in other parts of the agriculture industry.

(via Watershed Post)

In a filing with the SEC, Batavia-based Graham Corp. announced raises for its senior executives, effective April 1, according to the Rochester Business Journal.

Pay for CEO James Lines jumps 3.8 per cent, from $265,000 to $275,000.

Three percent increases were given to Jeff Glajch, vice president–finance and administration and chief financial officer, to $216,000; Alan Smith, vice president of operations, to $183,536; and, Jennifer Condame, controller and chief accounting officer, to $132,613.

Batavia-based Graham Corp., which in 2008 saw the price of its stock drop from $50 per share to under $10 in the space of about three months, continues a string of good news in recent months.

This week Graham announced a quarterly dividend of two cents and another $6 millions in orders.

The orders have come from multiple sources around the world and include work for steam surface condensers installed in the U.S. and Asia.

The first order will be sent to a municipal waste-to-energy project in the U.S.

Growth is what most small business owners aim for, and Marc and Michelle Johnson reached an important milestone last month -- they moved from retail space they rented on East Main Street, Batavia, to a location on Washington Avenue that they own.

The Johnsons set up shop for Millennium Computers, founded in Batavia in 1997, in the former real estate office of Feary Cohen.

Marc Johnson said he had been planning for a couple of years to move Millennium into space he owned and bought vacant land on Washington next to the Cohen office a couple of years ago.

This past summer, he said, Howard Cohen called him and offered him the Feary Cohen space. It was a deal he couldn't pass up, he said.

"As an entrepreneur, you want to keep reinventing yourself," Johnson said.

While the new space is smaller, that's better Johnson said. It enables him and his staff to work more efficiently. They can handle multiple projects more easily.

It also helps that they were able to redesign the office -- which is based on a plan created by Michelle -- to suit their needs.

The office is designed, he said, for efficiency and openness, so that when needed, customers can work directly with the tech fixing or upgrading their computers.

And there's room to grow, either on the vacant parcel to the east or on the south side of the building.

"If business continues to increase the way it has over the past two years or so, I don't see any reason why we won't be able to expand," Johnson said.

In an awards ceremony themed "Simply Elegant," the Genesee County Chamber of Commerce honored its Class of 2009 with a dinner and presentation at a local hotel on Saturday night.  

Pictured above are, front row, Billie Owens, Naomi Silver, Chris Sardou, Mary Sardou, Christine Adamczak; back, Howard Owens, Gary Larde, Buddy Brasky, Tom Sardou, Steve Tufts,  Bill Dougherty, Tony Kutter and Travis Sick.

UPDATE 8:22 p.m., Monday: I should note, it was The Batavian's turn this year  to write, and WBTA to broadcast, profiles of this year's award recipients. I'd like to thank Genesee Graphics for printing, and Bill Mosman, a L.C. Mosman for framing the prints. Bill did an excellent job on was by necessity a rush order.

More pictures after the jump:

Dan "The Voice of Genesee County" Fischer, of WBTA, delivered a few opening remarks.

Tony Kutter accepts the award for Kutter's Factory Cheese Store.

Naomi Silver of Rochester Community Baseball with daughter, Desiree, 8.

Steve Tufts of the Batavia Area Jaycees with Tara Pariso and Cathryn Colby.

Chris, Tom and Mary Sardou of Viking Valhalla/Rose Garden Bowl, the Business of the Year.

Myron "Buddy" Brasky, Batavia High basketball coach (and JV baseball coach), the Geneseean of the Year.

ADDED: Thanks to Melissa George from the Chamber for the picture below.

Don Desjarlais, a representative of Oregon Cutting Systems out of Raleigh, N.C., talks about the differences in chain saw teeth during a chain saw safety clinic at Cedar Street Sales and Rentals.

The annual clinic provides area highway department workers and others who use chainsaws frequently detailed information on the operation of chain saws and their safe use.

Dan Fisher at WBTA was kind enough to air a story today about The Batavian, interviewing me and Billie, with Pachuco in the studio.

Ameka Cooper at Carlson's Studio shot the portrait picture.

You can listen to Dan's story here (mp3).

The awards will be handed out Saturday night at the Holiday Inn.

Previously, The Batavian ran the following stories on our fellow award winners:

• Genesee County Business of the Year: Viking Valhalla Restaurant
• Geneseean of the Year: Buddy Brasky
• Kutter's Cheese Factory Store: 2009 Agricultural Business of the Year
• Special Recognition Award: Rochester Community Baseball
• Special Service Recognition Award: The Batavia Area Jaycees

Tom Rivers is a reporter of boundless energy. He's run in marathons and worked day-long shifts in local farm fields.

Now he's published a book.

The Batavia Daily News staff writer wrote an award-winning series 2008 about his laborious research into just want it takes to work at local farms in Western New York. Those articles are the basis of Farm Hands: Hard work and hard lessons from Western New York fields.

"Books have a little more permanence," Rivers said. "You can read about the titans of industry, such as Dean Richmond, in books, but there aren't a lot of books about the people doing the work. I just think the farmworkers make a great contribution to our community. They deserve the recognition (of being in a book)."

The stories of Tom's days and nights in the fields of Genesee, Wyoming and Orleans counties picking apples and chopping and throwing cabbage give the reader a great sense of just how hard farm work is.

Although he knew it would be challenging, Rivers said he was surprised by how taxing it really is. And it takes training, experience and dedication to ensure that the produce isn't damaged before it's delivered to market.

"There's this feeling that we can just throw anybody into farm work, but not just anybody can do this," Rivers said. "Buyers could reject 40 tons of cabbage if it's not just perfect, if the heads are bruised. There's more pressure on the workers than there is in my job or in most people's jobs. They have to aim for perfection."

The book contains additional material not included in the original newspaper series, Rivers said.

Rivers self-published the book and had it printed at Hodgkins Printing in the Harvester Center.

The full-color book came out looking great, Rivers said. Daily News Publisher Tom Turnbull didn't hesitate to give Rivers permission, without fee, to reprint his own articles as well as the color photos that ran with the series.

"I like that it says, 'Printed in Batavia,' but I don't feel like I was working with a second-rate company," Rivers said. "They were great over there."

The book is for sale locally at the Holland Land Office Museum and Present Tense Books on Washington Avenue.

A bit of confirmation of rumors that Sam Pontillo is working on a deal to reopen the legendary pizzeria on East Main Street came out of the Genesee County Economic Development Center today.

Pontillo's potential landlord, BP Properties out of Rochester, was granted a $6,875 property-tax exemption by the GCEDC.

GCEDC officials said BP Properties and Sam Pontillo are trying to secure refinancing on $500,000 in debt left over from the previous operation.

(via WBTA)

Previously:

• Could uncovered Pontillo's neon be a sign of what's to come?
• Could Pontillo's in Batavia soon be a Pontillo's again?

As factory jobs have moved overseas, Western New Yorkers are making less and less money, according to a recent study from the University of Buffalo.

From 2004 to 2008, low-paying jobs -- those paying less than $30,000 per year -- increased 17 percent, while mid-wage jobs ($30,000 to $70,000) decreased 10 percent.

From the press release:

"These findings portray a new economic reality for Western New York that's in stark contrast to decades past, when the region paid some of the highest wages in the country," said Kathryn A. Foster, economics institute director. "It raises a host of questions about how to build and sustain economic security for Western New Yorkers."

During this same period, good-paying jobs -- above $70,000 -- have increased 6 percent. Those jobs comprise about 8 percent of the workforce, and the other two sectors are split evenly at 46 percent.

The federal poverty line for a single person is $10,830. For two people living together, it's $14,570. According to the report, Penn State’s Living Wage Calculator (meeting basic expenses), a single person should earn $18,300 in Buffalo. A single parent with a 5-year-old child needs $36,000 annually to meet basic needs.

A full-time, minimum wage job pays $15,000 annually. The median income in WNY is $31,080.

In 2008 dollars, a typical factory job from the 1970s might pay $60,000.

The report uses a fictional three-generation family to illustrate how the loss of good-paying factory work has forced both parents in a family of four to work and that family has less to fall back on.

But WNY is not alone. Low-paying service-sector jobs have been growing at about the same rate across the country, according to the report, though those jobs comprise just 43 percent of the work force.

As factories have closed, fewer and fewer workers enjoyed the benefits of organized labor:

"As both cause and reflection of the changing economy and wage structures, the percentage of workers represented by labor unions dropped steadily since the 1950s, from a national high of 35 percent to a current level of 12 percent. Unionization levels in the Buffalo Niagara region have mirrored national trends, particularly as manufacturing jobs have fallen. Yet the region’s unionization levels are consistently above national averages. Metro Buffalo’s 17-percent unionization rate in 2009 for private-sector workers was more than two times the 7-percent private-sector unionization rate for the nation."

Clearly, although the report concentrates on Buffalo as "Western New York," these issues do appear to be regionwide.

Full report available for download (pdf).

It was hard -- even 43 years later -- for Mary Sardou to retell the story of her husband's passing and what it meant for 13-year-old Tom.

"When my husband passed, we sat in the funeral home for three days," Mary says, and then stops, pushing back tears. "I'm sorry," she says.

"You started the story, ma. You've got to finish it," says Tom, now 56, as we sit in the dining room of the Rose Garden Bowl/Viking Valhalla Restaurant in Bergen, talking over a plate of wings about the history of Genesee County's 2009 Business of the Year.

Doc and Mary Sardou bought the Rose Garden Restaurant -- 30 years in business at the time -- in 1954, added a bowling alley three years later and renamed it Viking Valhalla in 1966. They had some rough times as young entrepreneurs, working hard, trying to raise two sons, and dealing with the region's changing business climate. But it was the death of Tom's father that may have been the biggest challenge for the family to overcome.

"Everybody," says Mary, trying to start again, "everybody who walked up to us said to him ... 'now you’re the man of the house. You’re the man.' I’m sure that just stuck in his mind. It stuck in mine. I think he felt very obligated to stay with me."

"Did that have an impact on you?"

"Absolutely," says Tom. "That was drilled into me. When I went into high school I knew what my course in life would be. It was going to be running a business."

Tom Sardou did what many teenage boys did -- he went to school, made the wresting team and even dreamed of being a cop. But after graduation, he didn't enter the University of Buffalo or RIT or even GCC. Sardou started a different education program: "the college of hard knocks," as he puts it.

First, Sardou took a job at Gates Bowl as a night manager so he could learn the bowling business. The next year, at age 19, Tom started running, with his mother, the restaurant and bowling lanes.

And he's been at it, seven days a week, ever since.

"I do enjoy it," Tom says. "There’s times when I would like a little more time off than I get. There’s times when I wake up in the morning and say, 'geez, I’d like to call in sick today.'"

Hard work and innovation to adjust to an ever-changing business climate pretty much define Viking Valhalla and the Sardous.

At 82, Mary Sardou still comes to the restaurant every day to take care of the books and look over the operation. Tom took a special interest in the bowling business, even serving for years as president of the area's bowling operators association, and manages the restaurant along with his wife, Chris -- who met Tom, where else, at the Viking Valhalla.

When Mary, Tom and Chris attend the chamber's award ceremony Saturday evening, it will be the first time ever that at least one of them was not at Viking Vahalla on a weekend night.

That's quite a bit of dedication for a restaurant Mary wasn't sure she even wanted her husband to buy when they first saw it. She didn't even want to go inside after they drove from their home in Fairport to look at it. "We came all this way," Doc said. "We might as well take a look."

Her first day of work at the restaurant began minutes later, when she saw the owner's wife needed help with the dishes.

At first, the couple paid weekly rent on the restaurant. Doc cooked and Mary tended bar, pregnant with their son, George.

Doc happened to meet one of the county's richest men at the time, Oakfield's G. Sherwin Haxton. Haxton came into the bar one day to meet Mary. He decided the Sardous seemed like decent, hard-working people. He decided to help them out. Mary calls Haxton, "our angel."

“He liked us," Mary said. "He went to bat for us. He went to the Columbia Bank in Rochester and he talked to the owner of the bank and told him to give us the loan, and he did.”

The loan helped them expand.

Winters for a restaurant along Buffalo Road in Bergen were dead. In the late '50s, there were no snowmobilers riding up to your front door looking for a brew and a burger, and with Batavia Downs closed for the season, there was very little Rochester-to-Batavia traffic. The Sardous had to figure out a way to bring in business during the cold, snowy months.

The bowling alley seemed like the right idea.

That worked for a while, but after the Thruway opened, more and more traffic bypassed Bergen. While a lot of family businesses in New York shut down as a result of the Thruway opening, the Sardous were determined to hang on. They worked harder, started hosting more parties and found ways to make ends meet.

While other business owners might have given up, Tom Sardou said, "We've never been of that mindset."

To keep the bowling business going, the Sardous have added leagues to fit into any bowler's schedule, from monthly leagues and morning leagues for mothers to a "wine and cheese league" Chris created to attract people who like to try new, fine wines.

But bowling slows down in the summer when people are more interested in outdoor activities, so Tom added sand volleyball courts in 1993.

The constant tinkering and finding new ways to keep the business going are just part of the family tradition.

"After my husband died, people said, ‘she won’t last six months,’" Mary recalls. "They were thinking I would give up or fall on my face. I’m not sure which. But I was determined to make it.

"This is my whole life."

A welcome sight on a long stretch of Route 5, at 857 Main Road in Corfu, is Kutter's Cheese Factory Store. Epicures, bus loads of tourists, wine lovers, cheese tasters and other customers make regular stops at the retail shop because they like what it offers.

The variety is impressive. Blocks of Swiss cheese, wheels of jack cheese, spreads, curds, cheesecakes, specialty cheeses like Stilton with lemon or double-cream Spanish cheddar, crackers, cranberry horseradish sauce, New York maple syrup, eggs, fresh local apples, hot mustard, bologna and more.

The success of Kutter's Cheese Factory Store and its positive impact on local agriculture are why it is being honored Saturday by the Genesee County Chamber of Commerce as Agricultural Business of the Year for 2009.

It is also a "satellite winery" of Hunt Country Wines and carries its New York wines exclusively. Wine sales at stores offering local farm and dairy products are allowed under New York Department of Agriculture and Markets law. In fact, at one time, dairymen grew grapes for vintners to augment their income.

Even so, the retail pairing isn't commonplace, according to 77-year-old Tony Kutter, son of the late founder, Leo.

"I've always been adament about promoting wine and cheese," Kutter said. "We also supply a lot of wineries with cheese for wine tasting."

In fact, the business ships worldwide, from California to Taiwan.

The small Corfu store property is leased from the adjacent Yancey's Fancy cheese producers as well as the equipment to make its own cheese. Kutter's produces fine cheddars and other cheese varieties, plus it sells products made by others, including some imports, like Port Salut from France.

Kutter lives just two houses away from the store, but is retired from the business. So is his 80-year-old brother, Richard, who lives in the area but spends winters in Florida.

Yet Tony remains active in the industry. He's on the board of directors of the New York State Cheesemaker Association and usually attends the Cheesemakers Convention. He's proud to note that the association pays half the salary of a professor at Cornell University to fund ag research.

Kutter says he's happy to work with the chamber of commerce to promote agritourism and he's honored to receive the chamber award. It recognizes a business that is now 63 years old.

In a way, it started in Bavaria, before the Great War. Leo (1893-1962) was born there and as a young man, his chosen vocation was cheese making. He was especially good at crafting the pungent Limburger variety.

Then World War I came and he served Germany. Two days prior to his being discharged, he was captured by the French and became a prisoner of war. But once the "War to End All Wars" was over, he returned to his roots. As the German economy faltered, inflation ran amouk and panic began setting in. He left for Buffalo, USA, thanks to the sponsorship of his sister. That was 1923-24.

Buffalo before the Great Depression was a boomtown, boasting large steel plants, flour mills and plenty of railroads lines to further commerce. He went to Wyoming County to find work in the dairy industry. Although the Great Depression created a shortage of milk, according to Tony, WWII created a shortage of sons to milk the cows.

Some historians claim there were more than 20 cheese factories in Western New York at the time. Leo told dairymen to bring him their milk, or let him milk their cows and otherwise make himself useful. What he really wanted, was to start his own cheese-making business.

He did so in Cowlesville in 1947, purposely on a main route with great access and visability. Tony and Richard learned young how to scrub vats and clean up equipment and the grounds after school.

After Leo's death, then-29-year-old Tony, a Korean War veteran, and his brother took over the business. It was hard, familiar work.

Early last year, they approached Brian Bailey and his wife, Heather, about buying the retail store. Brian had been a business partner of the Kutter brothers since 1995.

In November, they sealed the deal and along with Christine Adamczak, formed BHC Cheese, Inc. The trio constitutes the board of directors, with Heather as president, Brian as vice president of operations, and Adamczak as vice president of sales and marketing.

"It's an honor to be recognized, to be part of a business that is being carried on successfully after 63 years," Heather Bailey said.

Tony Kutter takes pride in creating a mighty "stinky" Limburger, the first cheese he learned to make, and claims more and more people are rediscovering it. Now with Kutter's Cheese Factory Store in award-winning hands, he's probably planning his 32nd trip to Russia.

There's a strong possiblity he'll be tempted to promote Limburger and vodka. The bold pairing does seems fitting. "Na zda-ro-vye!"

Covered by a giant tarp because business signs cannot appear on the outside of buildings that are for sale, according to city code, the neon-lit Pontillo's Pizzeria sign once again hangs proudly from the building at 500 E. Main St., Batavia.

Could it be a sign that Sam Pontillo is getting close to reopening the legendary restaurant? We still haven't heard from Sam or building owner Thomas Masachi about what's going on there, but crews continue to work inside the building.