Business

"We're losing a hundred jobs -- and that's difficult in any day and age," said Chris Suozzi, senior vice president of business development at Genesee County Economic Development Center. "We're very discouraged.

"We offered to do what we could to change their minds. But there are not a lot of tools at our disposal. It's a leased facility (Pioneer's Mill Street Offices). The good news is that Pioneer invested $2 million in it and it's now Class A grade space.

"We're very hopeful we can back fill this space. We've reached out to our marketing partners, who give us tips about companies who might be interested in a space this size."

It's set up as "back office" space and is equipped as a call center. It has 13,500 square feet of renovated space on the ground floor and another 8,500 square feet of unfinished space on the second floor.

GCEDC sold the building to Scott Harris late last year. He's the owner of a door company called Millworks Solutions and, Suozzi said, Harris knew Pioneer was leasing the building on a year-to-year basis. Later this year, Pioneer's lease would have been up for renewal.

Even though Harris will have lots of empty space for awhile, Suozzi said it's prime space, thanks to Pioneer.

Pioneer Credit Recovery's spokesman Rick Castellano wrote us email clarifying the taxpayers' money it got.

It says "...Pioneer only received economic incentives for the commitments that we met in Batavia. No incentives were received for the project to construct a permanent site for the company’s work on the IRS Private Debt Collection Program.

"...The $350,000 loan Pioneer received was repaid. We did not receive any of the grant money for (a) new facility."

The repaid loan was used to upgrade Pioneer's Mill Street offices.

Furthermore, although Pioneer was awarded a great deal more money as part of its contract, the company never got it. That's because the plan to expand and build a new facility was not viable after the government cut the program in which private firms could collect some IRS debts.

You'd think a debt-collection agency would be in high cotton these days, what with the economic downturn and all.

Not so, apparently with a Batavia business that duns people for money. Pioneer Credit Recovery, Inc., located at 1 Mills St., suite 200, is shutting its doors, according to workers there.

We are told by sources that employees were called into a meeting at noon and informed that the Batavia office was being shut down but that employees would be given an opportunity to transfer to Pioneer's Perry or Arcade office.

So far, we haven't heard from the bosses (we've placed four calls to the corporate headquarters) on details of the announced shutdown or how many employees will be affected. Ditto the reason behind the move.

Dan Fischer at WBTA has also tried calling Pioneer's headquarters and he spoke to a PR person who said she couldn't confirm nor deny the shutdown.

Batavia is just one branch of Pioneer offices located in New York, New Jersey and Pennsylvania. According to its Web site, it's the largest private employer in Wyoming County and is based in Arcade. Pioneer was established in 1980 and has about 1,400 employees in Western New York.

Pioneer is a subsidiary of Sallie Mae's Asset Performance Group Division. Its growth over the past few years stems in no small part from legislation passed a few years ago which allowed private companies to contract with the Internal Revenue Service to collect debts.

The company expanded into Genesee County in 2004, with much fanfare from local business leaders and politicos. It was widely regarded as a "shot in the arm" for job growth here.

Christine Fix, then-president of the Batavia City Council, said at the time, according to an old Pioneer press release:

"Pioneer Credit Recovery's selection of the Greater Batavia Area for its expansion represents a tremendous boost to the local economy and spotlights the collaborative efforts in economic development that are taking place in Genesee County and the City of Batavia. The City of Batavia is appreciative of Pioneer Credit Recovery's confidence in our future and welcomes them to our community."

The Batavia project was tagged at $3.8 million, with $550,000 coming from Empire State Development Funds and $750,000 from the governor's Office for Small Cities program. Pioneer pledged to create 200 jobs initially and a couple hundred more regionally in the not-too-distant future.

Howard Owens contributed to this post.

The Oatka Festival in Le Roy yesterday may have been the place for all the fun, but the former Creekside Inn -- soon to be the Creekside Tavern & Inn -- was where you heard all the buzz.

The site of many grand times, and no small bit of history, was jammed with people looking over what Bill Farmer and his son are doing to the rustic stone building set against the falls of Oatka Creek.

Farmer is a man passionate about restoration, having put a whole career into working on some of the landmark restoration projects in Rochester. The Creekside project was supposed to be a hobby project, but has become Farmer's full-time avocation. 

For those who think entrepreneurs won't invest in Genesee County, Farmer will have sunk more than $1 million into the project by the time the restaurant and tavern opens next spring.

I spent at least 30 minutes just chatting with Farmer.  He's passionate about the project and believes it will become a destination point, drawing diners and beer lovers from Buffalo and Rochester to a village that has seen better days.  Farmer believes, and I think he's right, the Creekside restoration could spark interest from other developers in the village, which he thinks is one of the great undiscovered villages in WNY. 

The Village of Le Roy is well located, with some great older buildings and plenty of local history to be a draw for shoppers and diners from all over the region.  It's great to see an entrepreneur like Farmer take such a huge step to help save one great building and hopefully spark a new economic era for Le Roy.

A story in the Democrat and Chronicle indicates the D&C is getting the USA Today printing contract, which for a generation has been with the Batavia Daily News, because the paper will finally have a plant capable of handling the job.

Ambor said USA Today had been printed for regional circulation outside the company for 24 years because the Democrat and Chronicle's presses, then located at the downtown building, weren't equipped to handle the extra work.

Construction of the Canal Ponds plant, and the current need to find economies within the company, made the switch possible and practical.

I can't believe a good reporter wrote "find economies." What he really means is "cut costs."

Gannett, which owns both the D&C and USA Today, is struggling like all newspaper companies, but it's problems may be more severe than some. This week the conglomerate announced yet another round of layoffs, reducing work force across the company by some 1,400 people. It also faces a huge debt payments due in 2011 of more than $700 million. There's much speculation in the industry that Gannett won't survive as a company beyond the date that payment comes due.

Meanwhile, Watertown-based Johnson Newspapers has little to say about the fallout in Batavia.

Harold Johnson II, president and chief operating officer of Johnson Newspaper Corp., which owns the Batavia Daily News, declined Wednesday to say how much loss of the contract would cost the company. He said there likely would be pressroom job cuts in Batavia because of the change.

"It's been a mutually beneficial relationship over years," Johnson said, referring to the contract with Gannett. "But there are other possibilities we will explore."

When I drive through the Village of Le Roy, I see nothing but potential. It's a quaint "downtown" -- couple of blocks set against a scenic creek and a sense of history.

It's a shame there are so many vacant store fronts in Le Roy.

So, when I got this announcement today from Janice Revier, I was quite happy.  It's great to see a pair of entrepreneurs investing in Le Roy:

Take a walk down Main Street, number 70 to be exact (between the Wiss Hotel  and Townsend Oil), and you’ll find a new shop in town – “the Locally Made shop.”  This venture, started by Colleen O’Connor from Stafford and Jan Revier from LeRoy, will be a teaching gallery, displaying and selling items made by artisans from Genesee and surrounding counties.

It expects to be open starting July 10th and while in its infancy, it currently has some hand-woven products, hooked rugs and mats (traditionally hooked, not latch hooked), handspun and hand-dyed yarns, and some knit items. While this inventory is currently made up of fiber-related output, the goal is to have more artisans from different quality crafts represented –  artwork, pottery, jewelry, basketry, quilting, photography and any other  medium which blends well with the store’s other merchandise. Applications  to be represented at the shop will be available at the store itself or you can email locallymadeshop@aol.com for information or a copy of the application.

The shop will be open Fridays and Saturdays, from 10 a.m. to 4 p.m. and other times by appointment. Ultimately. they expect to have some supplies related to their handwork available, possibly an evening gathering where you can bring your project to work on, a small lending library of related books and magazines, and to conduct classes when there is enough interest. In the meantime, drop in and say hello and watch an heirloom being created. Any and all encouragement will be greatly appreciated and just maybe this can breathe a little life into downtown LeRoy. At least “the Locally Made shop” is 
going to try.

A farm worker in Darien has been accused of stealing and selling 150 head of cattle from Herdsman at Reyncrest Farms and selling them for more than $250,000.

Charles G. Baldwin, 37, 4 John St., Akron, is charged with grand larceny and now held at Genesee County Jail in lieu of $20,000 bail.

Baldwin allegedly stole the cattle between July 2007 and May 2009 from the farm located at 9666 Route 77, Darien. The farm is owned by the Reynolds family, who reportedly employed Baldwin.

The alleged crime was investigated by William T. Ferrando, an investigator with the Sheriff's Office.

Victorian Manor in Batavia, which has been facing financial difficulty (just last fall, there were $1.54 million in liens against the property), has a new owner and a new name.

It's now The Manor House, owned and operated by Manor House, LLC.  The financially troubled Sunwest Management transferred the facility to a group of 10 individual investors.

Full press release after the jump:

It’s official—Victorian Manor is now The Manor House.  On Friday, June 
26, 2009, ownership was transferred from Sunwest Management to Manor House, 
LLC.

The new owners are the 10 individual investors who were originally brought in 
by Sunwest when it purchased the facility in 2006.  When Sunwest began to 
struggle financially in 2008, the investors undertook an effort to take 
control of the facility and have now been able to conclude the transfer of 
control and ownership.

“We loved this facility when we first invested in 2006 and love it even 
more today as we have been able to really get to know the staff and 
residents,” said Gordon Davis, the Managing Partner for the new ownership.  
“This is more than a physical facility.  It is home for our residents, but 
also, a community itself and an integral part of Batavia and all of Genesee 
County.”

The Manor House is an independent living facility for seniors with 40 
apartments and a full dining room in the original 15 year old building on 
East Main Street.  The new owners will now complete the construction of two 
new wings which will bring the total number of studio, one and two bedroom 
apartments to 90.

Despite its financial and management troubles, Sunwest, as the fourth largest 
operator of senior living facilities in the nation, understood how to design 
a senior living facility that was more than just an apartment.  The new wings 
were designed to complement the existing building with additional common 
community spaces, an exercise room; a games and recreation room, a hair salon 
and a large “ice cream parlor.”  “I think the ice cream parlor will be 
where everyone meets during the day” said Davis.  “Living at The Manor 
House is about being with friends and people you enjoy.  Staff is there to 
support our residents with high quality meals, organized activities and 
service that meets the different needs that our residents have.”

“We have finalized our agreements with the contractors and they will be 
back to work to finish the new wings beginning next week” said Davis.  
“We expect to have our first apartments ready for occupancy within about 
four weeks.”

Local contractors who had stopped work last summer and filed liens on the 
property are pleased to be back to finish their work.  “We are proud of the 
work that we do and it was hard to see this so close to completion yet no way 
to finish” said Brian Wormley of Wormley Construction, a contractor doing a 
walk through today. “This is a great facility and it will be nice to see 
people moving in soon.”

The Manor House was originally built by St. Jerome Hospital in conjunction 
with the Sisters of Mercy in 1994.  It has been a prominent feature on East 
Main ever since, and during the summer months, always with residents enjoying 
the daily movement of Batavia from its expansive porch.

If you've driven past Zigrossi Motors on Route 5 in Batavia last night or this morning and took note of a seemingly empty parking lot, don't jump to the conclusion that Zigrossi is out of business.

While you will be seeing less inventory on the lot over the next few months, that isn't why the lot was emptied last night -- that had more to do with hail than the fact that the business is being sold.

Harry Zigrossi has been in the car business for 30 years, he said, and he's ready to retire.

A buyer has been found, but because of the General Motors bankruptcy, the deal cannot close until early 2010, unless GM emerges from bankruptcy sooner.

"Because we were fortunate enough to be on good asset side of the General Motors list and not the bad asset side, we can be sold," Zigrossi said. "If we were on the bad asset list, there would be no new dealer and we would be shutting down."

Meanwhile, Zigrossi is still open for business. The new cars on the lot are all for sale and the service department remains open.  Zigrossi said all operations will continue until the new dealer assumes control.

The Downtown Public Market opens in the morning at 9:30 a.m.

Vendors this year include: Lloyd Christ Farms, S & T Christ Farms, J & W Fresh Farm Produce, Nice Farms, Schwab Farms & Watt Farm, Alston’s BBQ Sauce, Genesee ARC (Handmade) Pet Products, Nonna’s Vegetable Plants & Crafts & Pressed Flowers by L. Regatuso, Posy Power Peddler

Jackson St. Grill & Belladessa’s Pizza will serve hots, hamburgers, pizza & refreshments from 11:30 am to 1:30 pm.

The market runs every Thursday for the season from 9:30 8:30 a.m. to 3 p.m. at the corner of Center and Ellicott.

The micro-enterprise loan/grant program, which has been used by a number of businesses in downtown Batavia over the years to help them get started or expand is now available to any business in Genesee County, the Chamber of Commerce announced today.

The program provides cash for small businesses (five or fewer employees, including the owner) in a loan (75 percent) and grant (25 percent) format so businesses can hire more people, buy new equipment or make other business improvements that will lead to greater employment.

The program is designed to augment private funding sources when traditional loans are either unaffordable or unavailable.

Full press release after the jump:

The Genesee County Chamber of Commerce announced today the availability of a micro-enterprise loan/grant program (75% loan, 25% grant) for small businesses located in Genesee County.  The program is designed to augment private funding sources when other funding is unaffordable or unavailable.  While standard commercial lending policies will apply, interest rates and repayment terms will feature affordability and flexibility generally not offered by banks.

Eligible borrowers must be micro-enterprise business owners with five employees or fewer (including the owner).  Funds may be used for any legitimate business purpose including, but not limited to, capital equipment, inventory, and working capital. 

The Genesee County Chamber of Commerce is an equal opportunity organization and therefore will not discriminate on the basis of race, gender, political affiliation, disability, or any category designated by Federal law. 

For applications and/or program details, contact the Genesee County Chamber of Commerce at 210 East Main Street, Batavia, 585-343-7440.

I took this picture last week, but I have the same thought every time I reach the intersection of Main St. and Lake St. in Le Roy: What good is Walgreens going to do for Le Roy? What where village planners thinking when they agreed to see two buildings that fit the village torn down and replaced by one that intentionally doesn't fit?

The Walgreens will do nothing to help the existing businesses in the village or help fill up the 10 or so vacant store fronts there.

The parking lot in front of the building is designed to make Walgreens a drive in, buy, and leave location.  The black metal fence further imprisons Walgreens customers, sending a clear message: Don't park here and walk to the village.

A new company coming into an existing business district couldn't send a more hostile message to the local community than this parking lot and fence.

Patrick Weissend, after 11 years as director of the Holland Land Office Museum, is changing jobs. He is joining the Bank of Castile as branch manager in Medina.

His 11-year-term puts him well ahead of the three-year average for museum directors in New York, but said the Bank of Castile offer was a great opportunity.

"I've been here for 11 years," Weissend said. "I love it here. It's a great place to work and great place to be and a great place to grow, and this opportunity came along and it can be like the opportunity of a lifetime that I can't pass up.  It's not something I applied for -- well, I did apply for it eventually -- It kind of just fell into my lap, so I had to take advantage of it."

Weissend, a Stafford resident, said he will continue to live in Genesee County and stay involved in community activities, as well as getting more involved in the Medina community.

Prior to becoming a historian, Weissend was an accountant.

The personnel committee will meet soon to discuss finding a successor, Weissend said. Meanwhile, he has three more weeks as director with HLOM.

"I have this feeling of both sadness and this feeling of excitement," he said. "You know, the sadness at leaving this place, which has become such a part of my life. In a sense, I enjoyed being Pat from the Holland Land Office Museum. It's weird that I'm not going to be that person any more. It's kind of like gone away, that person that I was, and now I'm going to be a new person. A lot of people have been reacting, shocked, shocked that I'm leaving. Some of my board members didn't believe me. Even my own mother said, 'I thought you would be there forever.'"

Genesee County may be losing out on the big Yahoo! data center deal, but that doesn't mean the county isn't out of the hunt for high tech jobs, according to GCEDC spokesman Chad Zambito.

Zambito told WBTA today (audio) that there are two big projects, with one being a strong possibility, that could get started in the western part of the county.

"Hydropower has been very important for us,'  Zambito said. "We've got two sites here in Genesee County that fall into the hydropower zone. It's about three-and-a-half cents a killowatt an hour. It's been a big difference right now. It's the only thing we're seeing moving is high tech looking at hydropower."

Also today, I e-mailed Zambito and asked him for his thoughts on why Yahoo! apparently picked Lockport over Genesee County.  Here's his response:

Our understanding is that an official announcement has not been made. That being said, we would certainly be happy to have them in the region but would obviously be disappointed to see Genesee County passed by. In comparison, the possible site in Niagara County may benefit from more industrial development as compared to our Green Field sites here in Genesee County.

Some 40 companies in Genesee County that receive Empire Zone tax breaks seem to be doing what the program intends -- create jobs -- according to a press release from Empire State Development.

But many others across New York are not, so today authorities notified about 1,600 companies that they are likely to be decertified.

No Genesee County companies made the "bad" list. Three companies are apparently being asked to supply more information.

For more on the new site law and the letters, check this Democrat and Chronicle story.

Here's the list of Genesee County companies who were notified they will retain certification:

Paramount Computing Associates, LLC
Altamar New York, Inc.
Tompkins Trust Company
Precon Thermoforming, LLC
PCore Electric Company, Inc.
Pioneer Credit Recovery, Inc.
Delagrange Properties
Vantage Equipment, LLC
Lapp Insulators, LLC
LeRoy Plastics, Inc.
Fontrick Door, Inc.
K2 Plastics, Inc.
C.H. Wright Distributing Corp.
Wright Associates, L.P.
Summit Lubricants, Inc.
Liberty Pumps, Inc.
Icon Design, LLC
Automotive Corp, Inc.
Prime Materials Corp.
Regency Hospitality, Inc.
Chapin International, Inc.
Oxford Hospitality, LLC
ProTech Automation, LLC
United Parcel Service
Tompkins Insurance Agencies, Inc.
Duro-Shed, Inc.
Oxbo International Corp.
Yancey's Fancy, Inc.
Provitello, LLC
Paul Marshall Produce, Inc.
Ad Tech-Graph, Inc.
K-2 Industries, Inc. d/b/a Pavilion Gift Co.
O-AT-KA Milk Products Cooperative, Inc.
Wellsville Carpet Town, Inc.
Brothers International Food Corp.
Allied Building Solutions, LLC
Traco Manufacturing, Inc.
Highway Safety Devices International Corp.
Graham Corp.
Pyramid Prosthetics, Inc.

The following three companies have been asked for more information:

Millwork Solutions, Inc.
Genesee Gateway Development, LLC
Pembroke Park Development, LLC

Here are the three lists for the whole state in PDF format:

• Retention
• Questions
• Possible Decertification