Business

Walk into Batavia Downs and you don't necessarily hear the cash register ringing, but you can certainly hear the cha-ching of video gaming.

And it's a good thing. It turns out that harness racing may be fun to watch, but it isn't profitable for the race track.

The historic facility is again projecting a loss for living racing, but will more than make up for it off of slot machines.

"I think everybody in the harness racing industry statewide understands that without video gaming, harness racing would no longer be in existence," Michael Kane, vice-president of Western OTB, told WBTA (mp3). "You need harness racing to have video gaming. It's a cost of doing business."

Kane added, though, that Western OTB works very hard to reduce its losses in racing.

Harness racing is expected to lose $1.3 million dollars, but overall Western OTB is projected to turn $5 millions in profits, thanks to those dinging, donging, clanging, light-flashing machines on the second floor of the Down's building.

A year ago today, a large black plume of smoke cast a dark shadow over the City of Batavia, alerting many residents to the fact that there was a big fire some place. It turned out to be at My "T" Acres/Call Farms, on Lewiston Road in the Town of Batavia.

Today, the large barn that was destroyed is being rebuilt.  Phil Call said it's been a challenging process to get the barn rebuilt, but that it made the most sense to rebuild on the same location on the original foundation. Otherwise, he said, it isn't the Calls way to make a big deal out of such a thing and declined a more detailed interview.  He said they were just glad to be rebuilding.

UPDATE: Nate Fix, a lieutenant in the Town of Batavia Fire Department, sent the following pictures he took the day of the fire.

With little fanfare -- only a small sign on the front door -- Ponderosa Steakhouse announced today that it is closing its Batavia location. The simple sign reads "This location has closed. We thank you for your patronage."  It then says that people with coupons can take them to one of Ponderosa's locations outside of the area.

I'm hanging out at The Daily Grind, Main and Jackson, for a little while this morning.  I'll be doing a couple of posts from there -- including the Deal of the Day -- so if you're in the area, feel free to stop in and say hello.

Rob Crede, manager of The Daily Grind on Main and Jackson in Batavia, serves Jim Kujawski on the first day of business for the new coffee shop and juice bar.

Owner Ken Mistler (pictured below) has been preparing for the opening for months, but characterizes this week's opening as "soft" so any kinks can be worked out.  But soft or not, Rob served a steady stream of customers this morning.

Meanwhile, the gym, Next Level, adjacent to the coffee shop, is moving closer to opening in a few weeks.  More pictures follow the jump.

Mistler stands in front of an in-progress mural by Vinny Del Plato at the top of the stairway leading to the lower-level workout area and men's locker room.

The kids' room, with mural painted by Karen Reisdorf.

While a lot people shop at the big-box stores for brand names, others choose to support local businesses because they offer unique items and provide good customer service.

Alexander's Molasses Hill Bulk Foods, located at the four corners on Main Street in Alexander, is a successful hometown business that has developed a loyal, local clientele.

Opened by sisters Lucinda and Meghann Morse in December of 2005, Molasses Hill has prospered in a small town.

"Alexander is our hometown. We wanted to be close to home." said co-owner Lucinda Morse.

Though the store is small, it is packed to the brim with quality products. The front of the store carries their baking items and the back of the store is where they serve their well-known subs, salads and soups.

The store carries a wide variety of cooking items, too.

"We have all the baking supplies, candies, spices, dried beans, jellies, soup mixes, and this time of the year we carry the seasoning for jerky." Morse said.

"I like that it's close and convenient," said Connie Bruggman, a longtime resident of Alexander.  "I go there for the bakery items. They have lots of special chocolate chips for cookies; the raspberry ones are really good."

Molasses Hill Bulk Foods is worth a trip.

"They're comparable for their quality, you get what you pay for. They buy bulk and break it down to offer their products for a cheaper price." Bruggman said. "I just think it's a nice addition to the town. It brings people into the village and gives the school kids somewhere to go."

Sen. Charles Schumer was in Batavia yesterday to tell local dairy farmers that he is working to bring in federal dollars to help their beleaguered industry.

But he also gave a pep talk for America. WBTA posted the audio (MP3).

Here’s the truth. People do’t like to hear it, but it’s the truth. For the last 15 years under Democratic and Republican presidents, here’s what America did: We consumed more than we produced. We borrowed more than we saved. We imported more than we exported.  We were the great production giant of the world. In the last 15 or 20 years, you know what we were? This big giant, big muscles, strong, astride the globe, stuffing our face with candy.

Schumer said Americans need to become a nation of producers again -- saving and exporting, rather than spending and importing.

But America has one advantage, Schumer said: there's no barrier to any person doing whatever he or she wants with his or her life.

We’ve gotten off track. We’ve gotten too fat. We can get back on track. Only America has the system that says, ‘I don’t care who you are, how much money you have, what your daddy did, or mom, you can achieve the stars if you work hard.' So the $64,000 question is, what are the policies that get us back and we’ll be giant again.

Photo courtesy WBTA.

I say it all the time -- if Western New York is going to turn itself around, to really spur a new era of job growth and economic vitality, it's going to take homegrown businesses leading the way. It's not going to happen by trying to recruit out-of-state industries into the region.

Daily Yonder has a post today that backs that supposition. It's about how North Carolina paid Dell a lot of money to locate a facility there, but now Dell is closing. Meanwhile, a locally grown company that got almost no government assistance is adding 600 jobs.

When are we going to halt public expenditures on the "buffalo hunt" for footloose industry and instead focus our resources and efforts on the sector that produces by far most of the jobs -- existing industry and homegrown business?

Note, that the author isn't against the kind of infrastructure development going on at the new agri-business park (though I know some of our conservative readers will take issue with the expenditure). He's talking about tax breaks and outright grants to bring in business.

The scholarly literature on incentives shows that they are a very poor investment of public resources. And, of course, the business sector has become expert at playing off one state against another in something akin to corporate extortion; and who can blame them?

Imagine if the South in general and North Carolina in particular had put all of the money spent on industrial recruitment into education, training and small business support. We would be watching even more Quintiles, Cree, PPD, Southern Seasons, Performance Bicycle and other homegrown entrepreneurial success stories all across North Carolina. And, although there are no silver bullets in economic development, homegrown businesses are more likely to stay put, invest in the local community, provide stable civic leadership and keep the control and wealth local instead of away at some remote corporate headquarters.

I continue to maintain that we need to find some way to spur more entrepreneurship, to encourage people already living and working here to take their great ideas and turn them into businesses. If we do invest (as taxpayers) in job growth (not saying we should, just if we do), it should be in businesses started locally, not in recruitment.

Genesee County's jobless rate continues to be a bit better than New York as a whole, but that's only looking at the glass as half full.

From the half-empty perspective, there were more people unemployed in Genesee County in October than there were in September.

The county's rate inched up from 7.1 percent to 7.3 percent.  (full data from the state here)

Meanwhile, the state rate climbed to 9 percent.

The even less rosy number is the jump over the past year for Genesee County from a 5.2 percent unemployment rate to the current 7.3 percent.

However slowly and incrementally, the ball is rolling forward on the Masse Gateway Project.

Tonight, property owner Tom Mancuso presented preliminary development plans to the Batavia Planning Board. The plans, sort of a rough sketch of the project, are the first step in an approval process that will involve a few agency reviews and more than a couple of public meetings.

Tonight's meeting was an opportunity for the planning board to see the plans for the first time and offer feedback, before Mancuso invests fully in project planning.

"We’re trying to move forward as quickly as possible, so the first step was to come here and get a review," Mancuso said after the meeting. "We need to do that before we do an application for a demolition permit, which we would like to do as soon as possible. We’re just finalizing construction funding. And just trying to get the appropriate approval so we can move forward as quickly as possible."

Mancuso said he hopes to have a demolition permit within 30 to 60 days.

The Masse Gateway Project will open up the former Masse/Harvester manufacturing plant to an entrance off Masse Place. The initial opening and refurbishing of the buildings around the entrance will potentially bring new business tenants into that part of the facility and help spur further redevelopment of the property into a mix-used business park.

The project is funded in part by a $1.5 million RestoreNY grant.

Mancuso said there is a lot of interest in the space from prospective tenants, but they do want to know when space will be available.

"The activity’s been good," Mancuso said. "It’s just that the hold-up that will continue to be an issue, is the delivery date. People need to know when we can get them in there and we can’t tell them that right now. There’s plenty of interest. It’s going to be a neat looking space. We’re going to be stymied until we can give them a delivery date."

The project plans will need to be reviewed at a city and county level for environmental impact, drainage, parking, Main-Street access, signage, use of utilities, lighting and code compliance. There are unlikely to be many applications for variances from current code, Planning Board Chairman Ed Jones noted, but he also suggested the City Council may want to take an active role in the environmental review process.

"Given that the source of the funding is coming from the city, this may very well be something that the City Council may want to take on as lead-agency status," Jones said. "This is going to be a high visibility project."

Tonight is another Ladies' Night at The Mane Attraction. Chris Ariyaratnam organizes the monthly event as a way to help promote local businesses and raise funds for various local charities.  In addition to shopping the booths of local vendors, visitors can buy raffle and Chinese auction tickets. Tonight's event isn't over yet (at 6:15 p.m.). It is open until 8 p.m.

Toyota of Batavia is investing $975,000 to expand its dealership, and to help the project along, the Genesee County Economic Development Center is providing a $7,500 tax incentive.

The project was first approved for benefits on Feb. 21, 2008.  But the actual benefit was approved this week.

The dealership is mortgaging its property for $600,000 to help pay for the project. GCEDC is providing the mortgage-tax exemption.

The GCEDC estimates that for every $1 of tax benefit, the community is realizing $616 of investment by the company.

The dealership is located at 3899 W. Main St. Road in the Town of Batavia.

New York Senator Kirsten Gillibrand used her weekly call with the media today to make a different kind of pitch -- rather than promoting some bill she's signed on to, Gillibrand made an appeal to New York's employers: Hire a veteran.

On the day before Veteran's Day, the senator is reminding businesses that there are tax credits available when they hire military -- especially war -- veterans.

Unemployment among veterans is 14.6 percent, Gillibrand said.

She also announced legislation to help veterans become entrepreneurs. The Veterans Business Center Act of 2009 would help veterans gain access to capital and federal grant money to start new businesses or expand existing ones.

“Too many veterans are coming home to a very bad job market and unable to find work,” Gillibrand said in a statement. “They fulfilled their duty to our country, and now it’s time for us to fulfill our duty to them by making sure they have access to a good-paying job.

"The tax breaks we put in place earlier this year are a win-win for businesses and veterans, but we need to make sure businesses know they are available and take advantage of them by hiring more veterans. I'm making a personal pitch to the business owners I meet to hire a vet and take advantage of the tax credit.”

Full press release after the jump:

Washington, D.C. – With unemployment among young veterans in New York topping 14.6 percent, U.S. Senator Kirsten Gillibrand is making a personal pitch today to New York business to hire veterans and receive a tax break from the federal government in return. The Work Opportunity Tax Credit, which was expanded earlier this as part of the Economy Recovery Plan, can help thousands of veterans who are returning home from Iraq and Afghanistan to find a still-reeling economy and scarce jobs.

To provide additional economic assistance for veterans, Senator Gillibrand is also introducing the Veterans’ Business Center Act of 2009 – legislation that would help veterans gain access to capital and federal grant money to start new businesses and grow existing ones, as well as new a proposal to provide assistance for homeless veterans. 

“Too many veterans are coming home to a very bad job market and unable to find work,” Senator Gillibrand said. “They fulfilled their duty to our country, and now it’s time for us to fulfill our duty to them by making sure they have access to a good-paying job. The tax breaks we put in place earlier this year are a win-win for businesses and veterans, but we need to make sure businesses know they are available and take advantage of them by hiring more veterans. I'm making a personal pitch to the business owners I meet to hire a vet and take advantage of the tax credit.”
 

According to a new report from Senator Gillibrand, 7.3 percent of all veterans across New York State are unemployed.

• In New York City, an estimated 17,300 veterans are unemployed. Unemployment among New York City veterans increased by an estimated 4,700 over the last year.
• In Western New York, an estimated 8,800 veterans are unemployed. Unemployment among Western New York Veterans increased by an estimated 2,400 over the last year.
• In the Rochester/Finger Lakes Region, an estimated 6,600 veterans are unemployed. Unemployment among all Rochester-Finger Lakes Region veterans increased by an estimated 1,800 over the last year.
• In Central New York, an estimated 5,800 veterans are unemployed. Unemployment among Central New York veterans increased by an estimated 1,600 over the last year.
• In the Southern Tier, an estimated 4,500 veterans are unemployed. Unemployment among Southern Tier veterans increased by an estimated 1,200 over the last year.
• In the Capital Region, an estimated 7,200 veterans are unemployed. Unemployment among Capital Region veterans increased by an estimated 2,000 over the last year.
• In the North Country, an estimated 3,000 veterans are unemployed. Unemployment among North Country veterans increased by an estimated 800 over the last year.
• In the Hudson Valley, an estimated 9,500 veterans are unemployed. Unemployment among Hudson Valley veterans increased by an estimated 2,600 over the last year.
• On Long Island, an estimated 12,200 veterans are unemployed. Unemployment among Long Island veterans increased by an estimated 3,300 over the last year.
  

To honor our veterans and give them the resources they need during these difficult economic times, Senator Gillibrand is launching a legislative agenda to provide economic assistance for veterans. 

Jobs for Veterans, Tax Cuts for Businesses

The American Recovery and Reinvestment Act that Senator Gillibrand helped pass earlier this year expanded the Work Opportunity Tax Credit to include new incentives for businesses to hire returning veterans, and extended them through the end of 2010. But with so few businesses aware of the tax credit, the opportunity has gone under-utilized. Senator Gillibrand has been partnering with local Chambers of Commerce across New York State throughout this year to raise awareness among New York businesses of the tax credit, and encourage them to hire New York veterans returning home.

With Veteran’s Day this week and unemployment among New York veterans remaining high, Senator Gillibrand is writing to every single Chamber of Commerce in New York, urging them to work with their members and encourage area businesses to hire veterans and utilize the federal tax break.
 
In return for hiring a veteran, businesses may write off 40 percent of the first $6,000 paid to a veteran. The veteran needs to be out of the service for no more than five years, and must have spent at least 4 weeks of the previous year on unemployment.
Additionally, Senator Gillibrand is writing to the Assistant Secretary for the U.S. Department of Labor, Jane Oates, requesting that the Labor Department’s Web site be updated with current information about the Work Opportunity Tax Credit to make sure businesses and veterans know about the opportunities available to them.  
 
New Veterans Business Centers

Nationwide, 14 percent of all small businesses are owned by veterans. But like all entrepreneurs, veterans face the challenge of getting access to the capital they need to get new business ideas off the ground. To help give them the start-up money they need, Senator Gillibrand is introducing the Veterans’ Business Center Act of 2009 – legislation that would establish a national network of Veterans Business Centers (VBCs) to serve as a one-stop-shop for veterans trying to start a business.

Based on effective Women Business Center models, the new national network of VBCs would help veterans navigate federal grant programs to start new businesses, and offer expert guidance for veterans working to start or grow their businesses. The legislation would provide each VBC with up to $150,000 each year for up to five years, leveraging at least 50 percent from private investments or other sources.

The VBCs would be targeted for areas with high numbers of returning veterans with the ability to assist over 100,000 businesses nationwide within their first two years. Based on New York’s share of all small businesses, that means more than 10,000 businesses assisted in New York

Veterans Homeless Fund

Over 130,000 veterans are homeless, according to estimates from the Department of Veterans Affairs. With more and more veterans returning from Iraq and Afghanistan, and with the economic downfall keeping them out of the job market, veterans are at increasingly high risk of living in poverty and homelessness. In fact, according to a study by the National Alliance to End Homelessness, over 70,000 veterans recently home from Iraq and Afghanistan spend over half of their income on housing, despite not having access to a new job once they get home – putting them at extreme risk of going homeless.

To help give homeless veterans the resources they need, Senator Gillibrand is co-sponsoring legislation that would allow American taxpayers the opportunity to provide $3 of their taxes for homeless veterans by creating a new check-off box on federal tax returns, similar to the Presidential Election Campaign fund. 

The $3 check-box would not be required, but would simply give every taxpayer the chance to send some much-needed help to homeless veterans.

Genesee County will soon be home to the first shovel-ready agri-business industrial park in New York, according to Chad Zambito, spokesman for the Genesee County Economic Development Center.

GCEDC breaks ground on the project Tuesday and expects the first tenant to start building a $15 million food-processing facility in the spring.

"These are expensive ventures and private developers aren't willing to do it because of the cost that’s needed up front and the long-term return, so it’s something we have to do and we need everybody’s participation to make it happen," Zambito told WBTA.

The groundbreaking is scheduled for 10 a.m. at the Kennedy Building of the Genesee County Fair Grounds.

The 200-acre park is located between state routes 5 and 63 in Batavia and sits in close proximity to O-AT-KA Milk Products. 

At full build-out, the park is expected to provide 1,200 jobs in Genesee County and generate $2 billion in revenue over 25 years.

The first tenant, a Canadian-based food processor, will hire 100 people to work at its facility.

When the infrastructure installation is complete, the site will contain nearly 200 acres  serviced by industrial-class electric, gas and rail. The park is dedicated to agri-business applications including food and bio-fuels processing and is owned by a unique public/private partnership.

It also has access to 6 million gallons of aquifer water daily, ideal for food production applications, and sits in an Empire Zone.
 
The GCEDC, along with its real estate affiliate the Genesee Gateway Local Development Corporation and an affiliate of Farm Credit of WNY share ownership of the park.

It was largely made possible by a state grant recently approved by Empire State Development and a matching grant from Genesee County. The GCEDC, Town of Batavia, National Grid and National Fuel are also providing funding. 

Phase 1 construction, being completed by Zoladz Construction Company Inc. of Alden, NY, will include water, sewer and roadway base installation. 

Three Genesee County companies made the 23rd Annual Democrat and Chronicle list of Top 100 companies in the region.

The local companies are: Lapp Insulators LLC, 130 Gilbert St., LeRoy; Liberty Pumps Inc., 7000 Apple Tree Ave., Bergen; and, Manning Squires Hennig Co. Inc., 8426 Seven Springs Road, Batavia.

Here's what the D&C says is criteria for making the list:

The Top 100 companies are ranked by revenue growth using a mix of dollar and percentage increases over the three most recent fiscal years. To be eligible, companies must be privately held, independent, have a minimum of $1 million in annual revenue and headquarters in the Rochester region, which includes Monroe, Ontario, Wayne, Livingston, Orleans, Genesee, Wyoming, Seneca and Yates counties.

The D&C said the average growth rate for the Top 100 companies over the past two years was 25 percent.

Batavia-based Graham Corp. today announced more than $16 million in new contracts.

Graham manufactures equipment critical oil refineries and the petrochemical industry. The  new contracts are for two refineries in the Middle East and a fertilizer project in Asia.

James R. Lines, Graham`s President and Chief Executive Officer, commented, "It is encouraging to see increased purchasing activity in our international markets, particularly in Asia and the Middle East, where we expected the recovery from the global recession to begin. We are also seeing renewed quoting activity in South America. However, we do not believe our markets are in full recovery, and we continue to expect non-uniform order levels for several more quarters."

Less than a month ago, Graham laid off 15 local workers.

The staff at Bank of Castile/Tompkins Insurance on Main Street in Batavia are having some Halloween fun today. The top three floors are decorated with various Disney scenes and most of the staff is dressed appropriate to the theme on their floors. Groups of children from the YMCA are visiting throughout the day receiving treats as they visit Batavia's own Disneyland.

As a baker's son, I'm generally pretty aware of my surroundings when it comes to availability of cakes and bread. I've had a few conversations in the past few months with people along the lines of, "how come there's no bakery in Genesee County?"

Well, there is a bakery in Genesee County, and it just hadn't sunk into my head yet, but I happened to make a couple of trips out to Bergen this week, which reminded me about Greg'ry's Bakery and Cafe.

I stopped in there today -- they have a fine selection of locally made bread, cakes, scones, muffins and cookies. I'm glad I came across it again.