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Rather than shut down dealerships, Lee says, let market forces consolidate them

By Howard B. Owens

Rep. Chris Lee (R-26) is asking the government to step in and help save dealerships -- or at least the jobs they represent -- that have been slated for closure by Chrysler and General Motors.

In a statement, Lee said " the rapid and potentially disorderly elimination of thousands" of dealerships could put 150,000 people out of work.

Lee is asking the Treasury Administration's Auto Task Force to instead implement a plan that would allow for "market forces " to consolidate dealerships.

According to Lee's statement, "More than 60 members of congress, both Republicans and Democrats from districts all over the country, signed on in support of the letter.
 

Full press release after the jump.

 

 

Press Release:


WASHINGTON – Congressman Dan Maffei (D-NY) and Congressman Chris Lee (R-NY) are leading the effort to save local auto dealership jobs. Maffei and Lee wrote a letter to the Treasury Administration’s Auto Task Force, headed by Mr. Steven Rattner, to request the Task Force reconsider the forced closure of dealerships across the country in favor of a more flexible and transparent process that would allow for market forces to consolidate dealerships. More than 60 members of congress, both Republicans and Democrats from districts all over the country, signed on in support of the letter.
 
Congressman Dan Maffei said: “We all recognize that the economy is not favorable to the auto industry right now. We’ve seen layoffs from manufacturers and we expect to see more dealerships consolidate and close this year. However, forced closure of arbitrary dealers will not necessarily help automakers, and it certainly will not help our local economy. We are asking the Task Force to hold off on forced closures and allow more time for smarter consolidation and attrition of our local dealerships. These dealerships employ hundreds of people across our area in good-paying jobs, they sponsor our little league teams and our pancake breakfasts, they have been an integral part of our community for generations -- and all we are asking for is that they be allowed to make the best decisions possible for their businesses.”

Congressman Chris Lee added: “Hundreds of good-paying jobs in Western New York are tied to the future of local dealerships, and we can’t afford to lose them due to hasty decisions made in Washington. In many cases, dealerships are small, family-owned entities that are deeply connected to the communities they serve.  We have asked the auto task force to take a long, hard look at this issue to ensure an open and transparent process that is fair to both the dealers and their customers.”
 
Bailey Wood, a spokesman for the National Automobile Dealers Association (NADA), commended this action by Congress: “Representatives Maffei, Lee and more than 60 of their colleagues recognized the important role that neighborhood auto dealers play in their communities.  With the local auto dealer as the largest private employer in many small towns, the rapid disruption in the local job market will have an even greater negative impact on the local economy.  A more balanced and fair approach to the inevitable consolidation of dealerships will be better for all parties, and we strongly encourage the Auto Task Force and President Obama take heed of the suggestions made in this letter.”
 
A copy of the letter is below. A list of those Members who co-signed the letter will be released shortly.
 

 
The Honorable Steven Rattner
Counselor to the Secretary of the Treasury
United States Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, D.C. 20220
 
Dear Mr. Rattner:
 
We are writing to express our serious concerns regarding the decision by the Auto Industry for the rapid and potentially disorderly elimination of thousands of Chrysler and General Motors dealerships.  This action, if implemented, could put approximately 150,000 people out of work.  Since these dealer reductions and its ripple effects would have a serious and adverse impact on the United States, we would like to ask you to inquire with the companies about their rationale for revoking franchise agreements with thousands of dealerships.
 
To justify these job losses, GM and Chrysler are apparently relying on a misperception that new car dealers create a cost burden to auto manufacturers.  This is not true, on average reportedly almost all of an automaker’s revenue comes from dealers purchasing the automakers’ vehicles.  Far from saving money, a rapid reduction in dealerships could very likely reduce GM’s and Chrysler’s revenue and market share.  
 
Automobile dealers are one of the largest private sector employers in the United States, providing tens of thousands of local jobs and contributing millions of dollars in tax revenues to states. Auto dealers are anchors in communities throughout the country and many times ownership is passed down from generation to generation. In addition many auto dealerships are minority owned and have traditionally provided strong local community support. Each dealership creates an average of 52 neighborhood jobs and these positions typically pay twice the national average as other retail-sector jobs.  Dealers have invested about $233 billion to create an auto sales network that provides a vast distribution and service channel for consumers.  In fact, automakers created the franchise dealer network specifically to lower their costs, as they outsource virtually all costs associated with selling and servicing cars. 
 
Last year, over a thousand auto dealers closed their doors for good.  Further thinning of the dealer ranks through normal market, dealer-driven consolidation, and other forces is inevitable.  The action being proposed has not taken into effect the impact on communities and workers, and without any evidence that massive and immediate dealer reductions are necessary to restore the financial health of GM and Chrysler.
 
We appreciate the enormity of the mission your Task Force has undertaken to help the auto industry.  However, we are concerned the reduction of dealerships, at a time when the national unemployment rate is rising, is counterproductive policy. We respectfully request that the Auto Task Force urge the companies to provide more transparency and justification on forced dealership closures, revisit their decision and consider the damaging effects on local communities.
 
Sincerely,
 
 

______________________________
Daniel B. Maffei
Member of Congress
 
______________________________
Christopher J. Lee
Member of Congress
 

Stafford Fire Department offering up Corvette in annual, money-making raffle

By Howard B. Owens

Bob Fitzsimmons and Mike Boyle get a little sun sitting next to an eye-catching jet black 1963 Corvette Convertible. Fitzsimmons and Boyle said they will be in the same spot everyday, outside the Stafford Fire Department building, from 11 a.m. until 5 p.m. selling raffle tickets for the vehicle (or $50,000 in cash) until the drawing on Father's Day.

This is the 26th year the SFD has raffled off a Corvette. Fitzsimmons said it's a very successful fund raiser for the department.

"We own all our own engines, the building and the land behind it," Fitzsimmons said. "The town gives us a little bit of money, but not much. It (the raffle sure helps with my taxes, I'll tell you that."

The raffle is known throughout the world, Fitzsimmons said. They publicize it through their own mailing list as well as magazine ads.

Tickets are $1 each, or three for $2, or $10 for a book of 15.

Resurrection Parish raffling new Chevy

By Howard B. Owens

Barbara Bezon stands besides a Chevy Malibu LS that Resurrection Parish is raffling off as a fund-raiser for the church and St. Joseph's School. The car is provided by Ken Barret Chevy-Cadillac. The winner can select the car or $10,000 cash (taxes will be withheld). The drawing will be held during the Resurrection Parish Lawn Fete, June 12, 13 and 14.  Bezon spent the afternoon at a table outside the church selling tickets.

Deals of the Day: Adam Miller, Herbly Wonderful and Essence of Candles

By Howard B. Owens

We have three half-off gift certificates today from three great, fun and interesting retailers.

Each gift certificate is $25 and on sale today for $12.50 each (plus a $1 service fee).

Today: Adam Miller Toy and Bicycles on Center Street, Herbly Wonderful on Pearl and Essence of Candles on Liberty.

Rules: The gift certificate must be used by within 30 days of purchase. It is not valid with other offers and has no cash value.  People who have won a certificate in the past 30 days are not eligible to win a certificate from the same business as before. 

How to Win: Purchase using the PayPal "Buy Now" button below. After the first person to hit the "buy now" button completes the purchase, PayPal will let you know that the item has been sold. Ideally, the winner will arrange to stop by my office on Main Street before 5:00 p.m. (today or tomorrow) to pick up gift certificate. Mail is an option, but it would be better to hand you the gift certificate. 

If you want to be notified via e-mail of future Deals of the Day, sign up for the Deals of the Day e-mail list by clicking here.

Merchants: If you would like your business featured in Deal of the Day, call Howard Owens at 260-6970.

Adam Miller Toy and Bicycles

SOLD

Herbly Wonderful

SOLD

 

Essence of Candles

Roll over accident Saturday leads to minor injuires

By Howard B. Owens

The driver and one passenger suffered unspecified facial injuries and complained of pain following a roll over accident on Route 5 on Saturday near Buckley Road in Stafford.

The driver, L.M. Schellenberg, 18, of Le Roy, said she served to avoid a deer when she lost control of the vehicle.  The car was a 2001 Chevy sedan.

Her passenger also reportedly injured in the accident was 16-year-old D.M. Schellenberg, also of Le Roy. 

Both were taken by ambulance to an area hospital for treatment.

Batavia captains who declined temporary chief position could apply for permanent job

By Howard B. Owens

Any one of the four fire captains who turned down the provisional fire chief position for the City of Batavia could still take command of the department.

There is not yet an eligible list for the position, said Karen Marchese, personnel officer for Genesee County, but a civil-service exam for fire chief has been scheduled for January. An eligible list are those people who are qualified and have applied for the job.

Marchese's office handles civil-service issues for governments in the county.

Chief Tom Dillon resigned week before last, and served his last day Friday, after the New York State Civil Service Commission denied a waiver that would have allowed him to draw his pension and his full-time salary.

The waiver, known as a 211 waiver, has its uses, according to the state's Web site, but Marchese said the commission is trying to reduce the number of such waivers, especially when there are eligible non-retired candidates for the job.

The hearing in which the 211 waiver for Dillon was reviewed by the commission was available in a webcast, Marchese said (the webcast is no longer online since the commission has met again since then).

"My recollection is that they discussed the nature of fire and police service -- there's a lot of tradition, as you know, in police and fire service -- and they discussed how it's primarily a promotion-based system," Marchese said. "They discussed that there were candidates who applied for the job who are not retirees.'

Marchese said she was not trying to speak for the commission and the exact reason for the denial is not clear.

Asked if she had anything to add, Marchese said, "I work very closely with the city and other localities on issues like this. This has been rather high profile and Jason and I have worked closely on it. We've had an open line of communication about it. He's working in good faith. There is no bad faith here on his part."

As for the captains, they've been told by Jason Molino not to discuss the situation with the media, according to two sources. The captains were told this was a "personnel issue," so they were prohibited from talking publicly about it.

Last year's Muckdog stars promoted to High Class A

By Howard B. Owens

Eight players who spent time with the Batavia Muckdogs during their 2008 championship season are continuing their minor league careers this season with the Palm Beach Cardinals.

Palm Beach, also a St. Louis Cardinals affiliate, is in the Florida State League, which is considered High Class A.

Among the players making the roster are hitting stars Jermaine Curtis, Cold Sedbrook and Shane Peterson.

Reliever Adam Reifer is also starting the season with Palm Beach, as is Lance Lynn, who put up great numbers with both Batavia and Quad Cities.

Rounding out the list of promotions: Francisco Rivera, Ryan Kuilk and Thomas Eager,

Two reported under-age drinking parties in two nights at one house lead to five arrests

By Howard B. Owens

Five people were taken into custody in connection with alleged under-age drinking parties on successive nights at 3065 Pearl St. in the Town of Batavia.

Adam B. Thomas, 20, of Batavia, was pepper sprayed after allegedly giving false information about his age and then resisting arrest. He is charged with false personation and resisting arrest and was jailed in lieu of $300 bail. The incident occurred at 5 a.m. Saturday morning.

Less than 24 hours later, Sheriff's deputies were again summoned to the residence after receiving a tip that another under-age drinking party was in progress.

Deputies and State Police arrived at 2:30 a.m. and reportedly found several youths drinking.

Taken into custody were: Anne M. Culliton, 45, and Michael K. Culliton, 44, both of Batavia. They were charged with unlawful dealing with a child stemming from the Saturday morning incident.

Also arrested were Christian Culliton, 24, of Le Roy, and Brandon Culliton, 23, of Batavia, for unlawful dealing with a child stemming from the early Sunday morning party.

All four were issued appearance tickets.

Investing the incidents were Sgt. T.A. Sanfratello, deputies Kevin M. McCarthy, James Diehl, Chad Minuto, Jason E. Saile, Patrick J. Reeves along with state troopers Weslowski and Franz.

Police Beat: Teen accused of shooting child with BB gun

By Howard B. Owens

Michael J. Elmore, 18, of  Batavia, is accused of shooting 8-year-old boy in the leg with a BB gun at the skate park on Evans Street. Elmore is charged with reckless endangerment and endangering a child.

Megan J. Nenni, 21,of Albion, is charged with DWI following a traffic stop in the City of Batavia early Saturday morning.

Jake Myers, 19, of Batavia, was charged with possession of marijuana following a traffic stop early Saturday morning. Myers was also cited for drivers view obstructed, but no details on that violation were provided.

Eric L. Skeet, 20, of Corfu, is charged with DWI and possession of Marijuana following a traffic stop following a traffic stop on Pearl Street early Saturday morning. He is accused of having a BAC .08 or more.

UPDATE: Somehow I missed a couple of faxes from the weekend this morning. Below are additional items not part of our original report.

Jerod L. Trebian, 30, of Batavia, is charged with DWI stemming from a traffic stop for alleged speeding Friday evening in Pembroke on Route 77. He is accused of having a BAC of .08 or greater and driving 59 in a 40 m.p.h. zone.

Lazeuia D. Washington, 32, of Buffalo, was arrested in Darien for an alleged DWI, resisting arrest and consumption of alcohol in a motor vehicle. She was placed in jail in lieu of $1,500 bail.

Shuvon Williams, 32, of Batavia, is accused of shoplifting from K-Mart. He is charged with petit larceny.

Batavia without fire chief as qualified captains decline temporary appointment

By Howard B. Owens

At the close of business today, the Batavia Fire Department will be without a fire chief, as none of the four captains who are qualified to fill an interim position wanted to take on the role at this time, CIty Manager Jason Molino told WBTA this afternoon.

Molino said he will handle routine administrative tasks for the department while the job search for a new chief continues.

Chief Tom Dillon resigned after learning last week that the New York Civil Service Commission denied the city's request for a waiver on his position. Dillon retired after 29-years with the Rochester Fire Department and the commission said he could not continue to draw retirement and earn more than $30,000 per year.

Ken Barrett Chevrolet spared GM's ax

By Howard B. Owens

On a day when as many as 1,100 Chevrolet and Cadillac dealers were told by General Motors that it would no longer need their services once their contracts expire, Batavia's Ken Barrett Chevrolet-Cadillac was notified the dealership will remain open.

“We are part of GM’s continuing plans,” Ken Barrett told WBTA this afternoon. "Ultimately the people who will determine our fate are our customers.”

The dealership cuts, which amount to about 20 percent of its network, come amid financial turmoil for the auto giant. Unlike the Chrysler cuts announced yesterday, GM is not releasing a list of dealerships that will not get contracts renewed.

Yesterday, we learned Castiglione Chrysler also survived the round of cuts announced by that car maker.

Mistler closes on South Beach purchase this afternoon

By Howard B. Owens

I ran into Ken Mistler about 30 minutes ago entering The Insurance Center office on Main Street. He let me know he was closing on his purchase of South Beach, building and restaurant.

Mistler said there are two potential tenants looking at the location, but nothing is firm yet.

Deals of the Day: Fine Dining Friday - Alex's and Larry's

By Howard B. Owens

Hey, it's Friday -- end of a long work week, time to reward yourself with a good meal at a nice restaurant. So today we're offering two $50 gift certificates for $25 each. (note, starting today, we're charging a $1 service fee to offset our PayPal fee).

One is for Alex's Place on Park Road and the other for Larry's Steakhouse in Downtown.

After dinner, you can take in a show, too.  We still have tickets available for The Lion in Winter from The Batavia Players. These tickets are $5 each (regularly $10).  The offer expires at 5 p.m. today.

Rules: The gift certificate must be used by within 30 days of purchase. It is not valid with other offers and has no cash value.  People who have won a certificate in the past 30 days are not eligible to win a certificate from the same business as before.  Gift certificates cannot be used, by state law, to purchase alcohol.

How to Win: Purchase using the PayPal "Buy Now" button below. After the first person to hit the "buy now" button completes the purchase, PayPal will let you know that the item has been sold. Ideally, the winner will arrange to stop by my office on Main Street before 5:00 p.m. to pick up gift certificate. Mail is an option, but it would be better to hand you the gift certificate. 

If you want to be notified via e-mail of future Deals of the Day, sign up for the Deals of the Day e-mail list by clicking here.

Merchants: If you would like your business featured in Deal of the Day, call Howard Owens at 260-6970.

Alex's Place

SOLD

Larry's Steakhouse

SOLD

The Lion in Winter

Bench on Ellicott finally completed

By Howard B. Owens

Yesterday, we noticed this bench was completed. Looks nice, but patrons in the Pok-A-Dot are still making skeptical remarks about it, wondering what kind of riffraff it will attract.

Police Beat: K-9 alerts on backpack, marijuana suspected

By Howard B. Owens

Christopher Saddler, 25, of Albion was pulled over by a Sheriff deputy for an alleged traffic violation at 12:20 p.m. yesterday. The K-9 working with Deputy Thompson reportedly alerted on the car, and then alerted on a backpack in the car. Saddler was cited for unlawful possession of marijuana.

Gymnastics enthusiast's dream of a training facility in Stafford, but neighbors object

By Howard B. Owens

Amy Mathisen has a dream -- to build a facility for gymnastics and offer them after-school programs on her parents' farm in Stafford.

Karen Nostrant and Paul Hendel don't necessarily want to stomp on that dream, but they aren't eager to see such a facility close to their home on Caswell Road. The prospect of increased traffic and car lights shining into their windows is not appealing to them.

On Mach 24, Mathisen sent a letter to the Stafford Town Council outlining her plans, which will require land-use changes.

Mathisen's dream starts with converting three or four acres of the farm into a lot for the facility, which would be 9,000 square feet with 400 square feet dedicated to before-and after-school programs and recreational activities.

Parking would be a gravel lot.

In a letter dated May 1, Nostrant and Hendel say the proposed location would be less than 100 feet from their front porch, that the parking area would significantly increase noise and lights adjacent their property, traffic on Caswell would increase from three vehicles per hour to more than 30 and the value of both properties would decrease as a result.

Rather than try to shut down Mathisen's dream entirely, however, Nostrant and Hendel, who are both volunteers with the Stafford Fire Department, suggest the facility be shifted to Griswold Road, which would put a barn between it and the two houses on Caswell.

Mathisen's a 33-year resident of Stafford and has been involved in gymnastics since age 13. She wrote to the town council:

"Gymnastics is a sport that prepares youth for any sport through gross motor skill development, strength training, flexibility and balance. Gymnastics is for both boys and girls of all ages and with the afterschool program right at the center, some parents will have one less stop to make in their busy schedules, which in turn strengthens the family unit. I want gymnastics in Genesee County to have a facility that will be around for years to come with the tools it needs for gymnasts to excel. I have been involved in a program that has moved at least 8 times in the last 10 years. I want there to be a permanent home for gymnastics in Genesee County."

We tried calling Mathisen three times, but she has not returned our calls.

No hearing date has been set to review the proposal.

Online Exclusive: Save $300 on rocker recliner from Max Pies Furniture

By Howard B. Owens

Through a special arrangement with Max Pies Furniture, 400 South Jackson St., Batavia, The Batavian is able to extend this special, online-only offer to its readers:

We have for sale a rocker recliner. This big, comfortable chair normally sells for $699. The first reader of The Batavian to act on this offer can buy it online for $399 (plus sales tax). That's a $300 savings!

You can't buy this recliner in the store at that price.

The winner of this exclusive item will be able to choose from an in-stock rocker recliner or custom order in one of the three available colors.

The rocker recliner features soft upholstery and plush contemporary styling so you can enjoy a comfortable relaxing time whether watching TV, reading or enjoying good conversation. With plush saddle arms and unique butler back design, these recliners are comfortable while retaining their design that compliments almost any home décor. The upholstery, construction and design are built to handle everyday living.

There is only one item available at this price and it is exclusive through
The Batavian. The winning purchaser will need to arrange to stop by The Batavian office to pick up a purchase voucher. Final arrangements to take delivery of the chair are made at the Max Pies location at 400 South Jackson St. This item will be available until it sells and only one at this price is available.

The voucher has no cash value, but can be used toward an upgrade purchase on another item.

Deliver is free in Genesee County.

To purchase this online exclusive from The Batavian and Max Pies Furniture, click the PayPal button below (this is the only way you can make this purchase -- this price is NOT available in the store).

If you're a local business owner and would like to offer The Batavian readers great deals either as part of The Deal of the Day or as an Online Exclusive, call me at 585-260-6970.

SOLD

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