Business

Byron and Chris Ariyaratnam were all smiles this evening when I stopped by the location of their new business, Great Kutz, in Valu Plaza on West Main Street. Byron was busy training the new staff, who will be ready to start cutting hair in the morning.

Chris and Byron are partners in The Mane Attraction, and Byron is a partner in Mr. Wine and Liquor. They're the kind of local entrepreneurs Batavia needs. And they are proof that there are plenty of business people who believe in Batavia and are willing to invest both their money and their effort in building a sustainable Batavia business community.

There's something out of whack with the market for dairy products -- the price of production continues to go up, while the price dairy farmers get for their milk remains at historic lows, but for the rest of us -- us consumers -- we're paying just as much as ever for milk and cheese.

Somebody's making a lot of money off the hard work of Genesee County's dairies, but it's not the farmers nor their workers.

In fact, some of them are facing the devastating loss of their businesses.

"The price of milk since January has been very low, to the point that we’re going to lose about $300,000," said Le Roy dairy farmer Dale Stein during a dairy rally at his farm called by Assemblyman Steve Hawley. "We anticipated through September that it would be low, but the price has still not come back up in September and now they’re looking at March, so we’re borrowing another large set of money to get through until March. The problem is now, there are many farmers who can’t get any more credit due to the large size of their loss. We’re able to borrow money, but we’re here today because of so many farmers who can’t."

Hawley and Assemblyman Cliff Crouch (R,I-Guilford) are calling on Gov. David Paterson to release more than $150 million in state funds (half this year and half next) to assist the state's family-owned dairy farmers. They're also calling on Washington lawmakers to change the price-setting mechanism and supports for dairy products.

Crouch believes the money should come either from unspent funds from around the state or from federal stimulus money, but state officials are saying the federal government won't allow ARRA money to be used to help dairy farmers.

"I think where there's a will there's a way," Crouch said. "We've seen different incidents where stimulus money has gone out and we've really raised our eyebrows and can't understand why it got spent in that direction. And here's an industry that's here and it's going to be closing down if we don't do something to help it. For every dollar that's spent on a New York dairy farm, between $3 and $7 goes back into the local economy. If that isn't economic stimulus, than I don't know what is."

Recently, ARRA money went to a Catholic charity in Buffalo, and Gov. Paterson also authorized a $200 payment per child for needy families to help with school supplies, using ARRA funds.

Crouch said that it's time for Gov. Paterson to step up and offer assistance to the state's dairy farmers -- even if it's not the $75 million they seek this year, Paterson should at least be in Washington lobbying for his state's dairy farmers.

Photos: Top, Dale Stein speaks during the rally. Bottom, Lori Hawkins, an unemployed milker, showed up at the rally to let it be known she is looking for dairy work.

Every two years, the Genesee County Chamber of Commerce releases a map of the area that helps promote local businesses.

This year, The Batavian will handle the ad sales, which helps support the Chamber and pays for a valuable resource for travelers and residents alike.

As always, the up-to-date color map will be produced by Rochester-based Map Works, Inc.

More than 12,000 copies will be distributed throughout Genesee County in 2010 and 2011.

Local businesses interested in this promotional opportunity should contact Howard Owens at 585-260-6970.

NYS is now putting yet ANOTHER tax on business.....

http://www.buffalonews.com/cityregion/story/792670.html

Once again, LOWERING TAXES GROWS BUSINESS....RAISING TAXES (or disguising taxes as "fees") CHASES BUSINESS (jobs) AWAY!!

They need to quit spending ALL our $$.  They are just NOT going to stop taking it all until we are totally broke!

The New York Senate will be in session tomorrow and Majority Leader Pedro Espada is apparently looking to score points with New York City labor unions -- he's calling for passage of what upstate legislators call "the farm death bill."

The bill, the Farmworkers Omnibus Labor Standards Bill, AB 1867, has already passed the Assembly.

If it becomes law, the bill will require farmers to pay time-and-a-half for over time, allow farm workers to join labor unions and require a day off during harvest season. It will also require farmers to pay into the unemployment system, among other provisions.

The bill is sponsored by Catherine Nolan, who represents Queens. Assemblyman Steve Hawley once pinned her down during a floor debate into admitting that in her district contains "less than one farm."

Sen. Mike Ranzenhofer plans to vote Nay if the bill does come to a vote. He said even upstate farm workers he's spoken with are concerned that passage of the bill will cost them their livelihoods.

"They are alarmed about the bill," Ranzenhofer said. "They're concerned about losing their jobs because farms will be going out of business."

Area farmers and farm workers alike tell both Hawley and Ranzenhofer that many of the issues the bill is trying to address is already taken care of by farmers. Most farmers do supply workers with adequate housing and health care. Workers are paid for all the hours they work, but not necessarily time-and-a-half. Because farm work is seasonal, the legislators note that a great deal of work must be packed into a short amount of time.

But by mandating such services, allowing labor unions to get involved and increasing government oversight, the bill will drive up costs on farmers tremendously.

The supporters of the bill just don't understand farming and that without farms, there is no food, both Hawley and Ranzenhofer say.

"The sponsors are from New York City," Ranzenhofer said. "They don't understand that the relationship between farmers and workers is mutually beneficial. This is a New York City union issue and really has nothing to do with farming in Upstate New York."

It's unclear just how the Senate will vote on the measure. It could go either way.

John Pontillo says he has tried doing everything he can to save Pontillo's on East Main Street in Batavia.

So far, all of his offers to buy the building and the business have been rejected. He doesn't know why.

"I offered a solution that gave the family business a chance to reopen and keep it in the family," John Pontillo said this afternoon. "It could be open right now. I made an offer that would have allowed us to take care of all our creditors. Bankers looked at it and real estate people looked at it and business people looked at it and all said, 'John, this is a good offer.'

"It's very frustrating. I don't know why it was rejected."

The landmark Pontillo's, which Sam Pontillo founded in 1947, shut down in November, with a sign appearing in the parking lot saying it was closed for remodeling. It turned out, however, that the business owed more than $112,000 in back taxes.

The brothers were soon in court trying to settle estate and debt issues and who would run the business.

And the fate of Pontillo's has been tied up in court since.

"We all grew up in this business," John said. "I would like to keep it in the family."

A for-sale sign appeared on Pontillo's yesterday about 4 p.m., but John is skeptical that the business and building can be sold before creditors foreclose on the property. He fears if his offer isn't accepted before foreclosure, there will be no more Pontillo's in Batavia -- not the family business his parents nutured into a regionally renowned destination for pizza and pasta.

As local restaurateur Sean Valdes noted in a comment yesterday, "This will be a hard building to sell as a restaurant. The overhead will be a challenge."

We have a call into Sam Pontillo seeking his comment on the situation.

This is a reader-submitted photo of a for-sale sign on the Pontillo's building on E. Main Street in Batavia. A caller informs us the sign was placed on the building at 4 p.m. We're working on getting more information.

Paul Pontillo, of Pontillo's Pizza in Batavia, is accused of writing bad checks from a business account.

The alleged bad checks were written in 2008.

The 53-year-old Pontillo was arraigned in City of Batavia Court yesterday and released on his own recognizance.

Previously:

• State says: Pontillo's Pizza in Batavia owes more than $112k in back taxes
• Pontillo brother wants his name cleared of blame for tax problem
• Pontillo's brothers may head to court
• Batavia Daily News Friday: Pontillo's reopening soon doesn't look good
• Pontillo's: Open for Delivery

The city's application for a $2.5 million grant to help spark redevelopment of Masse Gateway (part of the Harvester Center complex) has been reduced to $1.5 million in the final award.

The city received word today that the funds will be released to the City, according to The Batavian's news partner WBTA.

City Manager Jason Molino told WBTA that the RestoreNY funds were intended to begin demolition and reconstruction of Masse Place.

"It's our hope that this will be the beginning of opportunities to develop that former industrial site into some more commercial and light industrial locations for businesses and hopefully increase jobs in the area," Molino said.

UPDATE: City Council President Charlie Mallow issued this statement this afternoon:

After decades of political inaction and stonewalling, our city has finally taken the first step forward to rebuild its decaying center. This could not have been possible without our City Manager and his staff. Their hard work and determination has brought millions of dollars in grants, as well as financial stability to our community over the last two years. I also want to thank Mr. Mancuso for believing in and investing in our city. Batavia can only prosper when business people like Mr. Mancuso are willing to take a chance and invest their own hard earned money into our community. I would like to give a special thanks to Governor Patterson and his staff for taking the time to understand the needs of our city and ensuring that Batavia receives its share of federal and state dollars to help stimulate our local economy.

Previous Masse Gateway Project coverage.

Scott and Lynn Garlock and Rachel Bradt opened their new deli, Kravings, in the Valu Plaza on West Main Street in Batavia this week.  The Garlock's previously owned and operated Grugnale's Italian Market & Deli on Jackson Street.

Judging from the pictures Ken Mislter posted to the Facebook page for Next Level Fitness, he and his workers are making good progress toward getting his downtown gym opened.  Mistler posted 15 new pictures showing the finishing touches being put into place.  No word on when he expects to open.

I wish somebody had tipped us to the new grocery store opening in Pavilion.

It's the kind of local entrepreneur story I like -- seeing a need, seeing an opportunity and taking action.

The store is being opened by Jeff and Vicki Kingdon, a Pavilion couple with no prior grocery store experience. 

And it raises the question: If an entrepreneur is willing to take a chance and open a grocery store in Pavilion, why can't somebody do the same thing in Downtown Batavia?

There's some great retail space vacant downtown. There's no reason for it to remain empty.

There's a new enterprise in the former Pepsi-Cola Bottling Co.'s distribution site in Batavia, which was based in the Crickler Business Building. SolarX now occupies this property, located at 319 W. Main St., as its primary distribution center.

SolarX sunglasses and ornaments are sold in mall kiosks nationwide.

Ben Mancuso, managing director at Chas. Mancuso & Son, Inc., represented both sides of the transaction.

"We have repositioned the facitily as a full-service business center," Mancuso said, "since the transition we have signed deals (with) 35,000 ft. of warehouse/distribution space and 4,000 ft. of executive office suites.

Tenants share a receptionist, conference rooms and lunch rooms. Given the current climate, we are pleased with the activity and very happy to have SolarX operating in Western New York."

A Canadian-based coffee chain is planning a location on Court Street with a "European style" formula, and the company is getting tax breaks that helped entice it to Batavia, according to an announcement by GCEDC today.

Coffee Culture stands to save $37,200 in taxes on its new equipment and building improvements to 6 Court St., and the company is also seeking property tax exemptions on the increased value the remodeled property will garner.

It's a program, according to GCEDC's Chad Zambito, that is available to any business, local or out of the area, that is investing at least $50,000 in its start up.

Ken Mistler, who is opening a coffee shop at Main and Jackson, declined the same assistance primarily because the timing of the process did not match Mistler's plans, Zambito said. Mistler was unavailable for comment this afternoon.

Coffee Culture plans to spend $330,000 to renovate the 2,500-square-foot location and turn it into a "high end" cafe and eatery. Initially, the business will be corporate-operated, but will be available to a potential franchise operator. It will offer free wi-fi, a plasma TV and meeting space.

Besides gourmet coffee, the chain offers breakfast and lunch sandwiches and desserts.

Zambito gave full credit to Don Burkel at the BID for getting GCEDC involved in the process of recruiting Coffee Culture to Batavia.