Business

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."

Here's a news release sent today from the Genesee County Economic Development Center:

The employment scene in Genesee County for year 2010, despite the Great Recession being in full swing, had positive results with regards to employment and job creation and retention across the county.

According to the latest figures just released from the New York State Department of Labor, Genesee County showed a net increase of 300 private sector jobs in 2010. The growth rate of private sector job creation within the county reflected a 1.8-percent increase for the year.

This type of growth is encouraging as most communities across the state and country have been shedding jobs or are fighting to maintain the status quo during 2010.

“Genesee County continues to succeed and grow even during difficult economic times," said Steve Hyde, president of the Genesee County Economic Development Center.  "This growth has been enabled by our private sector companies being resilient and successful during these tough economic times."

The GCEDC board of directors drove a focus on growth and ensuring we are a “business-friendly” community by way of our economic development strategic plan written in 2003.

Since 2005, GCEDC has participated in 177 economic development projects with area companies. This has fostered capital investment commitments which exceed $430 million and job creation commitments of nearly 1,400 jobs.

“It is encouraging to see that public/private partnerships like the GCEDC has with our business community is contributing to their sustainability and growth, especially in uncertain economic times like we have today," Hyde said. "I’m hopeful for continued growth and success in our local and regional economies in 2011."

Here's a news release from Congressman Chris Lee's office.

Congressman Chris Lee was chosen to serve as a co-chair of the bipartisan Congressional Dairy Farmers Caucus for the 112th Congress

Lee served as vice-chair during the 111th Congress until its adjournment last year. He will lead the caucus with fellow co-chairs Reps. Joe Courtney (D-CT), Peter Welch (D-VT), Timothy Walz (D-MN), Devin Nunes (R-CA) and Thomas Petri (R-WI).

The bipartisan caucus works to aid dairy farmers across the United States, and last Congress worked closely with Agriculture Secretary Tom Vilsack on important issues affecting Western New York’s dairy farmers.

“Western New York has some of the finest family farms in the country, and since coming to Congress in 2009 I’ve been focused on ensuring our region’s agricultural producers have the resources they need to survive,” Lee said.

“Dairy farmers in particular have been hard-hit during the tough economic times, but they are a resilient group of families closely tied to the land they farm and the industry they love. I look forward to working with the other co-chairs and members of the Caucus who share my commitment to strengthening family farms for this and future generations.”

According to the U.S. Department of Agriculture’s National Agricultural Statistics Service, Lee’s congressional district is the 22nd highest dairy producing district in the nation, with a market value nearing $500 million.

New York State as a whole produces about 12.5 billion pounds of milk each year. For more information on Congressman Lee’s commitment to Western New York’s dairy farmers, visit www.chrislee.house.gov/familyfarms <http://www.chrislee.house.gov/familyfarms>.

Organizers were pleased with the early turn out at the debut Bridal Show at Terry Hills today. Vendors from Genesee County were on hand to display for prospective brides, grooms and their parents what they offer to ensure the special day remains special.

The show continues until 4 p.m. For more information, click here.

Above, Steve Valle talks with customers about what Valle Jewelers has to offer.

More pictures after the jump:

Cathy Saile, The Enchanted Florist.

Dave Howe, Charles Men's Shop.

Jeremy Liles, Oliver's Candies.

Press release from County Treasurer Scott German:

Genesee County Treasurer Scott D. German announced today that sales tax was up in Genesee County in 2010 compared to 2009. We are up $723,777 (before distribution) over last year, German said.

We still ended up underbudget, German said. In both 2009 and 2010, the county budgeted $12,500,000 for its share of the 3 percent of sales tax. In 2009, the county ended up short of the budgeted amount by $467,000 and we will end up about $197,000 underbudget for 2010.

For the 2011 budget, the county budgeted $12,200,000 for sales tax, a $300,000 reduction from the previous two years.

One of Batavia's landmark signs has been partially shut off the past few nights, and a new sign has gone up on the historic Pontillo's location. It reads "Batavia's Original."

Meanwhile, an ad in the Le Roy PennySaver this week announced that the Le Roy Pontillo's location will close its doors Thursday. All gift certificates for that location must be used by that date, the ad said.

The owners of the Batavia Pontillo's/Batavia's Original were served with a federal trademark infringement suit in September. There's no word on the status of that lawsuit.

In October, it was disclosed that the Le Roy location is allegedly delinquent in taxes, with $24,261 owed to the county, school district, village and town.  If not paid, the property could go up  for auction in March. UPDATE: County Treasurer Scott German says the property taxes were paid in December.

Sam Pontillo told WBTA that his parent's estate owned a majority share of the Le Roy location.

"I didn't want to be tied to there with the mortgage anymore," Pontillo said. "So, I think it's time for something new for me."

In November 2008, when the Batavia Pontillo's location closed, Sam Pontillo told the Batavia Daily News: "I do not own that one," Sam said, pointing west toward Batavia from the Le Roy Pontillo's. "I own this one."

The estate has been tied up in a protracted lawsuit.

The ladies of the Red Fedora Fanatics, who get together monthly for a social luncheon, met at the Fedora Diner on Ellicott Street Road today. All of the women are Genesee County residents. 

One member said, "without our drivers, many of us couldn't get here," and asked that I take a picture of their drivers, below.

Since the city eliminated a community development director position, downtown retail vacancies have increased to 10 percent of the available space, double what it was in 2007.

At the same time, fewer businesses have applied for assistance through the city's revolving loan fund.

That data, along with responses from a citizen survey, indicate that the city isn't doing enough to spur economic growth. This is the driving force behind a proposal to create a new economic development coordinator position.

While the overall budget for the new position will be $90,000, only $10,000 of it will come from the city. The remainder will come from money currently in the revolving fund program and Micro-Enterprise Program fund.

Both of those programs could fund the new position for two or three years, according to a report prepared for city council, but it is expected that the coordinator will bring in additional grants to make the position self-sustaining.

"If it's not successful after two years, we'll find another approach," said City Manager Jason Molino.

The city is cutting $15,000 from its grant-writing/consulting budget and shifting $10,000 to the new position, for a budgetary savings of $5,000.

Molino said a big part of the new coordinator's job -- the position will have a salary range of $55,000 to $70,000 -- will be to spur small business growth.

The report says a lot of smaller projects, rather than one big project, is what's needed to drive economic growth, especially downtown, which the report says is key to Batavia's economic vitality.

Between 2003 and 2004, according to the report, the revolving loan fund provided $368,500 in loan assistance for 32 projects.

After the previous economic development position was eliminated, from 2008 to 2009, the program provided only $55,000 in assistance for three projects.

The earlier effort created or retained 111.5 jobs, while the job impact in 2008-2009 covered only 34 positions.

The report also notes that in the recent citizen survey, "economic development/job growth" was the number one service-area concern among residents, ahead of public safety. The survey also indicated that economic growth is also where the city is perceived to be having the smallest impact.

City council has yet to vote on the proposed new economic development coordinator position.

Yvonne Burgess has a real talent -- she can turn an ordinary cupcake into a work of art.

She stopped by The Batavian office Thursday afternoon to show of the decorative "flower box" of cupcakes she had with her and showed off mobile phone pictures of several other designs she's come up with.

The owner of Fry Dogz, a mobile food service, Burgess is looking to expand her business to offer customers cupcakes designed to fit any occasion.

"I feel a lot of enjoyment making these," said Burgess, explaining why she would like to make this speciality her primary business.

She would like to open a retail location, offering other baked goods, as well, in Downtown Batavia, but first, she said, she needs to demonstrate that she can make money making cupcakes.

A cancer survivor (she said she had a brain tumor), she said she's recently found it easier to work for herself, and making beautiful cupcakes is what she enjoys doing most.

"I couldn't find work that suited me (after getting cancer) and this does," Burgess said. "I love creating things and helping others. That's just me."

To contact Burgess, call either 585-591-7911 or 585-861-0414.

Employees of the Batavia Nursing Home of told WKBW that they've been having trouble cashing their payroll checks.

The facility, along with one in Lewiston, is owned by Senior Associates LLC, which is owned by Marc Korn, according to WKBW.

Full story.

In 2010, bed-tax revenue returned to normal, said Kelly Rapone, director of tourism and marketing for Genesee County.

After abnormal years in 2008 and 2009 -- when first a lot of construction drove the revenue numbers up to record heights, and then a recession and bad summer weather caused revenue to plummet -- 2010 put revenue back on the growth track of previous years.

Not every hotel did equally as well. Darien Lake Theme Park grabbed most of the revenue and the growth. But overall, last year was a good one for Genesee County tourism.

"It was a really good season, but it was a mixed bag," Rapone said. "The bulk of the number is driven by Darien Lake. They were going gangbusters this summer, while some other hotels were down a bit."

Recently, Darien Lake added 24 "Brown Bear" cabins, which can sleep up to eight and offer extra amenities, as well as added other accommodations. The Darien strategy has been to try to keep guests on site.

"The did keep a lot of business," Rapone said. "I would say eight of 10 calls we got here were from people wanting to stay on the property."

In all bed-tax revenue in 2010 was $356,133, up slightly from the last "normal" year, 2007, when it was $350,435.

While Darien Lake accounted for about one-third of the bed-tax revenue, the theme park also did a lot to bring people into the county, which helped a lot of other businesses.

The concert season was "awesome," Rapone said.

"If you were anywhere in Western New York, you couldn't escape the advertising for Darien Theme Park," Rapone added.

Tim Walton, the 21-year-old entrepreneur behind Top Line Shirt Company, is planning another business venture.

He and a partner, Mike Marchese, are planning to open a teen nightclub at 624 E. Main St., Batavia, in the spring.

The building is owned by Ken Mistler and once housed his gym, which is now located at the corner of East Main and Jackson streets, downtown.

Impulz Teen Nightclub is expected to open in the spring, Walton said.

The space is 7,350 square feet and Walton said it is already well set up for a DJ booth and dance floor.

The club will cater to teens in high school and middle school and be similar to iTeen, a popular nightclub in Buffalo that draws young people from throughout the region.

Walton said he first conceived of the idea when was 18 because he and his friends felt there weren't enough entertainment options in Batavia. But until now, he said, he couldn't afford to open such a venue.

To avoid the need of a loan to fully fund the venture, Walton turned to Marchese as a business partner to help get the doors open.

There will be extensive renovations inside the building before the club can open, Walton said.

Originally, Mistler intended to put a nightclub in the space, Walton said, but Mistler has become busy with his business ventures downtown, which include The Daily Grind, Next Level Fitness and South Beach Restaurant. Mistler has been providing advice and pointers during the start-up process, Walton said.

Christmas came twice for Jan Nichols of Batavia.

Nichols picked up a big present at the Batavia Improvement District Office today -- a $500 gift certificate for a shopping spree at participating downtown businesses.

The prize was the award of a contest sponsored by the BID called "Shop in the Zone."

Thirty-five downtown businesses took part, with entrants being required to stop at at least 12 businesses and fill out a participation card.

The winner was drawn from all qualifying entrants.

The contest ran from Dec. 1-24.

This CBS video says there's a renaissance overtaking Detroit, driven by a combination of big businesses relocating to the city and local entrepreneurs taking advantage of lower costs in the city.

While I know there will be those who will say New York is not Michigan, and rail against the high taxes and overregulation, but every place has its negatives. 

So my question is, if Detroit can have a renaissance, why can't Batavia?