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Holyoke Wants to Move ‘Way Beyond Potential’

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Mayor Joshua Garcia, left, and Aaron Vega
Community Spotlight Special Coverage

Community Spotlight

Mayor Joshua Garcia, left, and Aaron Vega

Mayor Joshua Garcia, left, and Aaron Vega can list intriguing signs of progress on many fronts in Holyoke, especially in efforts to attract ‘clean tech’ ventures.

 

As he talked about Holyoke and its many marketable assets, Mayor Joshua Garcia listed everything from its location — on I-91 and right off a turnpike exit — to its still-large inventory of old mill space and a few available building lots, to its “green, clean, and comparatively cheap” hydroelectric energy.

And all of these assets, and especially that clean, cheap energy, came into play as the city courted and successfully landed Sublime Systems, a startup currently based in Somerville that has developed a fossil-fuel-free, low-carbon cement, and will produce it at a long-dormant parcel off Water Street, perhaps by the end of 2026, employing more than 70 people.

Sublime is exemplary not only of how to maximize the city’s assets, but also of the type of business the city is trying to attract — those in ‘clean’ or ‘green’ technology and manufacturing.

“Sublime is an example of where we want to go,” said Aaron Vega, director of the city’s Office of Planning and Economic Development. “We want to stress our roots in manufacturing and innovation, and now that encompasses clean energy and green tech.”

The pending arrival of Sublime Systems is just one of the many intriguing story lines involving Holyoke. Others include the announcement last month that the city, working with local entrepreneur Cesar Ruiz, is trying to advance plans for an Olympic-style sports complex (one with a projected $40 million to $60 million price tag); new housing proposals in various stages of development; a steady stream of new entrepreneurial ventures fueled by EforAll/EparaTodos; ongoing efforts to revitalize the historic Victory Theatre; and many converging stories involving the city’s cannabis cluster.

One of them concerns contraction of that sector, planned businesses simply not getting off the ground, and the resulting impact on commercial real estate in the city and especially a number of those aforementioned former mill buildings.

“Housing is a focus for us, and it’s tied to economic development. We can bring a fair amount of support to developers who want to do housing projects in the city, but it is a long game, and it’s expensive.”

As many as a dozen of them were acquired with the intention of housing a dispensary or growing facility, but the slowing of the initial ‘green wave’ has left these new owners — all of whom bought high, when the market was red hot, and some of whom have already invested in their structures — looking for buyers and other uses.

And, in many cases, they’re dialing Vega’s number and looking for help, or at least some guidance.

“A lot of people think my office is like a broker … but we’re not moving private property in that way,” he said with a laugh, adding his team will certainly help make connections that might lead to a deal. “We’ll refer people and say, ‘this property is empty, but you have to deal with the owner.’

“They overpaid for these buildings, so it will be interesting to see how they’re going to unload them,” he went on. “Will they put them on the market at a reduced rate, or will they try to earn their money back with a profit?”

Housing is certainly an option, but an expensive and often-difficult one, he continued, adding that, while there is certainly a need for more housing in Holyoke, as there is in most communities in the 413 and across the state, conversion of old mills for that purpose requires capital, patience, and some luck, all in large quantities.

Joshua Garcia

Joshua Garcia

“We’ve been pulling back that curtain to the point where the buzz now is that there’s a lot going on in Holyoke; the reality is, there’s always been a lot going on in Holyoke.”

“Housing is a focus for us, and it’s tied to economic development,” Vega said. “We can bring a fair amount of support to developers who want to do housing projects in the city, but it is a long game, and it’s expensive.”

For this, the latest installment of its Community Spotlight series, BusinessWest looks at these various storylines and, overall, a city making great strides on several fronts.

 

Curtain Calls

Garcia calls it “pulling back the curtain.”

That’s how he described his office’s ongoing efforts to tell Holyoke’s story and let people know about the many positive developments happening there.

“We’ve been pulling back that curtain to the point where the buzz now is that there’s a lot going on in Holyoke; the reality is, there’s always been a lot going on in Holyoke. It’s just that people have been in their own bubble, believing whatever perception they want to believe about the city,” he said, adding that he’s trying to enlighten people through various vehicles, including a newsletter of sorts that he writes himself and emails to more than 150 people.

It’s called “From the Mayor’s Desk,” and the latest installment includes updates on a wide range of topics, from the proposed sports complex to planned informational meetings to be staged by MassDOT, in collaboration with city officials, on proposed corridor improvements on High and Maple streets; from the scheduling of shuttle service from MGM Springfield to Holyoke City Hall for the upcoming St. Patrick’s Parade and Road Race to some recent news items, including Garcia’s strong comments following state Commissioner of Elementary and Secondary Education Jeff Riley’s refusal to end the receivership of Holyoke’s public school system.

“The decision should have been a resounding ‘yes,’ with a commitment to confer in a reasonable timeframe to transition,” the mayor wrote in a response to the commissioner’s announcement early last month. “Instead, a different message was sent with no plan, no benchmarks, no firm commitment, but just, ‘we are not saying no, but let’s talk more.’”

The lack of progress on the receivership issue aside, the newsletter is generally replete with large doses of positive news, said Garcia, adding quickly that he is aggressively pushing for more in the months and years to come.

Jordan Hart

Jordan Hart

“Our future is tourism, and we need to create opportunities for that to take place.”

Indeed, Garcia, a lifelong resident, was frank when he said he’s tired of hearing about Holyoke’s potential, adding that this word is generally saved for young people, rebuilding sports teams, and startup companies. Holyoke recently celebrated its 150th birthday, and is “way beyond potential,” said the mayor, adding that the city’s “commercial renaissance,” as he called it, is in full swing.

As examples, he cited both Clean Crop Technologies and Sublime Systems, the latter of which was mentioned by Gov. Maura Healey at her State of the State address as an example of how the Commonwealth is building what she calls a “climate corridor.”

Holyoke would certainly like to play a large role in the growth and development of that corridor, said Vega and Garcia, adding that the city plans to take full advantage of those assets listed earlier and attract more companies that fit that profile and join what is the start of what could be called a cluster, with examples like Clean Crop, which uses electricity to revolutionize food production and safety, and also Revo Zero, a Virginia-based hydrogen-energy supplier, which has chosen Holyoke as the site of its Northeast hub. The company works with airports, municipalities, college campuses, and other entities to convert their fleets to hydrogen-powered vehicles.

 

Momentum Swings

John Dowd, president of Holyoke-based Dowd Insurance, which recently celebrated its 125th anniversary, said the emergence of these companies is part of the sweeping, ongoing change that has defined the city since he grew up there.

He remembers shopping for back-to-school clothes with his parents in the many department stores that dotted High Street back in the ’70s. They are now gone, and for several reasons, including the building of the Holyoke Mall, as are most of the paper and textile manufacturers that gave the city its identity.

The work to create a new identity has been ongoing for roughly a half-century, he told BusinessWest, and will continue for the foreseable future.

“Slowly but surely, positive things have been developing downtown,” he said, adding that Holyoke is a city where the past and present come together nicely. “And when you catch those canals on a beautiful, crisp winter morning with the steam rising off them, it’s a beautiful picture, and you can almost see what Holyoke was like in the very beginning, when my relatives arrived.”

Change has been a constant for that half-century or more, Dowd and others said, adding that more change is imminent — and necessary.

Indeed, with the cannabis industry stuck in neutral, if not moving backward, there are now several old mill buildings that could become home to such ventures, said Vega and Garcia, noting that the fate of properties purchased for cannabis-related uses is an intriguing, somewhat unique challenging now facing the community.

Vega estimates there are six to 12 properties in this category, including the former Hampden Papers building on Water Street, purchased by GTI but never outfitted by cannabis use, as well as other properties on Appleton Street, Canal Street, Commercial Street, and others. And that list will soon include the massive, block-long mill on Canal Street currently occupied by Trulieve, which is pulling out of Massachusetts.

Jordan Hart, executive director of the Greater Holyoke Chamber of Commerce, said the cannabis industry has obviously provided a boost for the city and its commercial real-estate sector, but it has certainly plateaued, leaving opportinties for businesses in other sectors, including clean tech, to create further momentum.

Like the mayor, Ruiz, and others, Hart sees the proposed sports complex as another potential economic engine for the city, bringing people, and dollars, from outside the region and, in the process, perhaps fueling the start, or continued growth, of other businesses in the tourism and hospitality sector.

“The broad goal is to get more people to come and support Holyoke businesses, and I think the sports complex will definitely do that,” she said. “People staying for a weekend are going to need things to do, so this is really big time for Holyoke to realize that this is our future. Our future is tourism, and we need to create opportunities for that to take place.”

 

Developing Stories

While the sports complex, attracting businesses to be part of the climate corridor, and coping with the dramatic changes coming to the cannabis industry are the lead stories in Holyoke today, there are certainly others, including the ongoing issue of housing and creating more inventory, which is more of a regional story than a Holyoke story.

There are some new units coming online, said Garcia, noting that Winn Development began construction of 88 units in a former alpaca wool mill on Appleton Street. Meanwhile, the new owners of the massive Open Square complex have initiated discussions on creating 80 units of new, market-rate housing in one of the mills in that complex.

The Winn Development project is an example of progress on this front, but also of the many challenges facing those who want to convert properties in the city for that use, Vega said.

“Winn Development is a company that’s obviously well-versed in how to manage these projects,” he said. “They had 11 different pots of money, including historic tax credits, put together in an 88-unit development, and it took almost 10 years.”

While such projects are difficult and certainly don’t happen overnight, the city will need more housing if it is to attract more companies like Clean Crop and Sublime Systems, said the mayor, noting that these and other businesses have expressed concern that, without more inventory, it might become difficult to attract young professionals to the city.

“When we first met with Clean Crop, their first question was, ‘what is your housing plan?’” Vega said. “It wasn’t about business incentives, it was ‘what’s your housing plan, because we’re bringing in people that want to live in this area.’”

Garcia concurred, noting that, like other communities in the region, Holyoke needs a mix of market-rate and affordable housing to meet both its current and future needs. And, overall, the city has the space and the motivation for more housing; what it needs are developers with the patience and skill sets needed to make such projects happen.

Hart agreed, noting that new housing is not only crucial to attracting and retaining businesses, it is a core element in the revitalization of any city, and especially its downtown area.

“We have an overabundance of downtown storefronts that have vacant residential units above them,” she said. “There’s no reason why we can’t be creating downtown living to support the new downtown economic development that’s happening. And that housing will create a safer downtown because you’re going to need more light, and you’re going to need more amenities to help accommodate the people moving into downtown.”

Another ongoing story in Holyoke is entrepreneurship and a steady stream of new businesses getting their start in the city or one of the surrounding communities, said Tessa Murphy Romboletti, executive director of EforAll/EparaTodos in the city. She said the agency is currently working with its 21st and 22nd cohorts of aspiring entrepreneurs, with graduation coming this spring.

The previous cohorts have graduated more than 200 businesses across many different sectors, from restaurants to retail, she said, noting that several of them have become part of the fabric of the city’s business community. She listed Paper City Fabrics, now located in a storefront on High Street, and Raw Beauty Brand as a couple of the many examples of how the agency has helped individuals move from concept to business reality.

There are now several dozen such businesses, she said, adding that EforAll provides many services and support, but mostly helps businesses make the many connections they need to get off the ground or to that proverbial next level.

Holyoke at a glance

Year Incorporated: 1786
Population: 38,328
Area: 22.8 square miles
County: Hampden
Residential Tax Rate: $18.95
Commercial Tax Rate: $40.26
Median Household Income: $37,954
Median Family Income: $46,940
Type of Government: Mayor, City Council
Largest Employers: Holyoke Medical Center, Holyoke Community College, ISO New England Inc., PeoplesBank, Universal Plastics, Marox Corp.
* Latest information available

“We do our part to help them figure out how to navigate the issues they face and know who to connect with in each municipality, whether it’s Holyoke, Chicopee, or wherever, and enable them to make those relationships,” she told BusinessWest.

Meanwhile, another growth area is tourism and hospitality, said Garcia, noting that the planned sports complex, announced at a well-attended press conference at the Volleyball Hall of Fame, is part of that mix.

Another part is the growing list of festivals and other annual events, including Fiestas Patronales de Holyoke, which, in its second year, drew thousands of visitors to the city and established itself as an emerging tradition.

Already well-established are the Holyoke St. Patrick’s Parade, which last year celebrated its 70th anniversary, and accompanying road race, both of which are family events and economic engines for the Holyoke economy.

Hayley Dunn, president of this year’s parade and road race, noted that this year’s parade is actually on March 17, which adds another element of intrigue and also means that it comes earlier than most years, which raises more concern about the weather, which is often a big part of the story.

The bigger parts are the ways families and communities come together to mark the occasions — the road race has its own huge following — and how they provide a huge boost for area businesses. Indeed, a Donahue Institute study conducted several years ago found that parade weekend injects $20 million into the local economy. And there are dozens of events across several communities in the weeks leading up to the parade that also fuel the hospitality sector.

“The parade may go down the streets of Holyoke, but it’s truly a regional event,” Dunn said. “Other cities that are part of our parade — Springfield, Chicopee, Westfield, and others — have their own events as well. Meanwhile, the road race is a huge block party. Both events really support our local businesses.”

 

Bottom Line

Getting back to his newsletter, “From the Mayor’s Desk,” Garcia said it’s just one of the many ways in which he’s trying to inform people about all the good things happening in his city.

Others include extensive use of social media, as in extensive. And, from all accounts, effective.

“Someone approached me one time and said, ‘whoever is handling your public relations and communications is doing a great job.’ I said, ‘you’re looking at him.’”

Beyond his work on Facebook and Instagram, Garcia, working with other city officials, is doing what he can to generate more of these positive developments — on fronts ranging from clean tech to tourism to housing.

And while it’s still early in the new year, it appears he’ll have quite a bit more to write about in 2024.

 

Change Is Coming to Northampton’s Main Street

By
Northampton Main Street
Community Spotlight

Community Spotlight

Vince Jackson

Vince Jackson says Northampton retailers have mixed reports on the state of business these days, but are mostly optimistic.

As executive director of the Northampton Chamber of Commerce, Vince Jackson spends a lot of time talking to business owners, and what he hears is generally optimistic — to a point.

“Businesses are careful about using the term ‘fully recovered.’ For some retailers, their situation is better than it was in 2019,” he said, referring to the last pre-pandemic year. “Others say, ‘I’m open only three days a week versus seven, but I’m making more money now.’ Then, for others, things are still tough because we don’t have as much daytime foot traffic with a lot of people working from home. So it’s a mix of anecdotes around town, but the overall sentiment is that things are good.”

At the chamber, one way to gauge activity downtown is through Northampton’s gift-card program, which supports local businesses and, for the third straight year, got significant financial support from Keiter. Over this past holiday season, gift-card sales were up 9% from the previous year, and spending by people redeeming those cards has been up 12%.

“People are spending, and that translates into how retailers are doing,” Jackson went on. “I will say, however, that some retailers say things are not as strong as last year, when people were anxious to get back out and do more traditional shopping.

“So you’re going to get varied comments, but the overall sentiment is that business is good. Businesses are still dealing with supply-chain issues and inflationary issues, driving up costs of goods, but overall, people appreciate having made it through the pandemic and are ready to move on with a whole new start.”

Dee Dice, owner of Constant Growth, a marketing and consulting firm that works with many small businesses in the city and region, said there are supports in place in Northampton to help companies succeed, and new ones developing all the time, like the Sphere, a project of the Downtown Northampton Assoc. (DNA) that supports women entrepreneurs.

“Business owners and entrepreneurs are scrappy and resilient; they adapt well, and I think we’re moving into an era where we’re collaborating and coming together in different ways, figuring out how to share resources and how to come together as a community to set the next trend.”

“I feel like the city has much to offer, and it’s a really good place to start a business, for sure,” added Dice, who has become involved with the Sphere. “Is it ever the perfect time to start a business? That’s debatable, but Northampton is a good place to do it.

“I think Northampton values small businesses in the way they value artists and musicians,” she added. “They value that kind of rebel spirit, people who look to be different and take a risk. In that way, Northampton is great.”

The DNA recently launched a new series of downtown business owner meetings “to create an environment for businesses to come together and talk about what they face on the ground — what’s working and not working, and how DNA can help,” Executive Director Jillian Duclos said.

“I think there’s a lot of hope and a lot of enthusiasm for the future. I think the pandemic was really hard because it was isolating in a lot of ways, but things are shifting and changing on a daily basis,” she added.

“Business owners and entrepreneurs are scrappy and resilient; they adapt well, and I think we’re moving into an era where we’re collaborating and coming together in different ways, figuring out how to share resources and how to come together as a community to set the next trend. We’ve always been trendsetters here; a lot of communities follow in our footsteps, and now we’re resetting again.”

 

On the Road Again

And they’re doing so as a major Main Street road redesign looms ever closer, one that many business owners feel is necessary even as they fear the disruption it might cause once the actual construction work begins in 2025.

“Northampton is a city known for its resilience and community spirit. As we embark on the next phase of the Picture Main Street project, our top priority is to ensure that our local businesses not only endure but thrive,” Mayor Gina-Louise Sciarra said in a recent statement. “Together, we will ensure that downtown remains a bustling hub of activity, culture, and business throughout the construction period.”

Northampton Main Street

Both the Northampton Chamber of Commerce and the Downtown Northampton Assoc. are committed to communicating between their members and the city as the Main Street redesign project unfolds.

To that end, city leaders have joined with the chamber and DNA in a campaign around the road project with three goals: continuous communication channels between businesses, residents, and project teams; marketing, arts and entertainment programming, and educational initiatives to draw visitors and locals to Main Street; and innovative strategies to manage access and minimize disruption.

“A lot of business owners on the ground are actually very excited. Thinking ahead to when it’s complete, there’s not a lot of opposition,” Duclos said. “A lot of the comments have really been about the process of getting there. Because not much has happened, it leaves a lot of room to make up what might happen.

“But City Hall is working really hard,” she added, calling the campaign involving the chamber and DNA a “mitigation committee” that will keep its finger on the pulse of what’s happening and how it will affect businesses downtown.

“We’re going to make sure businesses have a voice at the table and they’re letting us know what they need. And businesses say they need to know the schedule of construction so they can work around that schedule,” she explained, noting that some businesses may not schedule certain events, appointments, or classes when loud construction is happening outside their window — but they’d like to know the schedule well in advance.

“We’ll work hard to create these communication channels to so they can operate their businesses in ways that make sense,” Duclos said. “This is not COVID. We’re not closing. We’ll be moving and shaking during construction, and we’ll be doing a lot of unique events.”

Jackson noted that the project’s goals match the acronym SAVE: safety, accessibility, vitality, and environmental sustainability.

“There is a need. There is a propensity for accidents, which have involved a death or two. And the state has said there’s an issue with two lanes on each side of Main Street that are not really marked for two lanes, and wide crosswalks and a number of other issues. And with accessibility, that means for everyone — bikers, people who have disabilities, people with mobility issues.”

In terms of vitality, Jackson is excited about how the redesign can build on some of the energy already being created not just in downtown businesses, but outside them.

“We’ve seen what outdoor dining can do for a community like this and how that has evolved. Even though we’re out of the pandemic, outdoor dining spots in Northampton are still very popular. That’s one of the silver linings to come out of the pandemic — we continue to capitalize on the beauty of the outdoors. That gives vibrancy to the city and gives people a reason to come downtown and shop, eat, and explore.”

Finally, environmental sustainability means not disrupting the environment too much, replacing and planting new trees so Main Street isn’t all about concrete and asphalt.

“You can come any night of the week into Northampton or Florence and get live music or some kind of performance. That’s encouraging, and of course it means not only the music scene will thrive, but people will eat out at more, hang out at bars and restaurants, and go shopping.”

Despite these positive goals, “business owners are nervous, rightfully so, about the disruption,” Jackson said. “What we’ve been told is that construction is expected to begin sometime in the fall of 2025, and the project is expected to take 18 to 24 months. So businesses are concerned.”

That said, the expectation is that the actual construction — both on the surface and with the underground infrastructure — will be tackled in phases, a stretch of road at a time, with the exact schedule communicated in advance. “It won’t be Main Street disrupted for a full mile; it will be broken up.”

Jackson pointed to previous road projects on Pleasant Street, where the chamber is located, and on King Street, that were successful, with plenty of commerce and activity along those well-traveled thoroughfares today.

“So I think, at the end of the day, people are optimistic about the future and realize this is a once-in-a-lifetime opportunity to think holistically about all the things this project represents.”

 

Continued Momentum

Jackson reiterated that the city, chamber, and DNA are committed to unifying the community and thinking of creative ways to plan events, activities, programs, and general excitement about downtown momentum, giving people reasons to visit even after the road project commences.

“So there’s new opportunity and new performance venues,” he added, citing the return of the Iron Horse Music Hall this May. “You can come any night of the week into Northampton or Florence and get live music or some kind of performance. That’s encouraging, and of course it means not only the music scene will thrive, but people will eat out at more, hang out at bars and restaurants, and go shopping. It’s the kind of city that invites strolling.”

Duclos agreed. “A lot of businesses support artists and have artists up in their shops and doing events. We want to work more closely with everyone on the ground to connect them and use our resources to support what’s already happening.”

IRS Offers Advice on What to Look for in a Tax Preparer

By Contributor
Accounting and Tax Planning

Make the Right Choice

The Internal Revenue Service today reminds taxpayers that carefully choosing a tax professional to prepare a tax return is vital to ensuring that their personal and financial information is safe, secure, and treated with care.

Most tax-return preparers provide honest, high-quality service. But some may cause harm through fraud, identity theft, and other scams. It is important for taxpayers to understand who they’re choosing and what important questions to ask when hiring an individual or firm to prepare their tax return.

Another reason to choose a tax preparer carefully is because taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares it.

The IRS has put together a directory of federal tax-return preparers with credentials and select qualifications (irs.treasury.gov/rpo/rpo.jsf) to help individuals find a tax pro that meets high standards. There is also a page at irs.gov for choosing a tax professional that can help guide taxpayers in making a good choice, including selecting someone affiliated with a recognized national tax association. There are different kinds of tax professionals, and a taxpayer’s needs will help determine which kind of preparer is best for them.

 

Red Flags to Watch Out For

There are warning signs that can help steer taxpayers away from unscrupulous tax-return preparers. For instance, not signing a tax return is a red flag that a paid preparer is likely not to be trusted. They may be looking to make a quick profit by promising a big refund or charging fees based on the size of the refund.

These unscrupulous ‘ghost’ preparers often print the return and have the taxpayer sign and mail it to the IRS. For electronically filed returns, a ghost preparer will prepare the tax return but refuse to digitally sign it as the paid preparer. Taxpayers should avoid this type of unethical preparer.

In addition, taxpayers should always choose a tax professional with a valid preparer tax identification number (PTIN). By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid PTIN. Paid preparers must sign and include their PTIN on any tax return they prepare.

 

Other Tips

Here are a few other tips to consider when choosing a tax return preparer:

• Look for a preparer who’s available year-round. If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over.

• Review the preparer’s history. Check the Better Business Bureau website for information about the preparer. Look for disciplinary actions and the license status for credentialed preparers. For CPAs, check the State Board of Accountancy’s website, and for attorneys, check with the State Bar Assoc. For enrolled agents, go to irs.gov and search for ‘verify enrolled agent status’ or check the IRS Directory of Federal Tax Return Preparers.

• Ask about service fees. Taxpayers should avoid tax-return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. Be wary of tax-return preparers who claim they can get larger refunds than their competitors.

• Find an authorized IRS e-file provider. They are qualified to prepare, transmit, and process electronically filed returns. The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit.

• Provide records and receipts. Good preparers ask to see these documents. They’ll also ask questions to determine the client’s total income, deductions, tax credits, and other items. Do not hire a preparer who e-files a tax return using a pay stub instead of a Form W-2. This is against IRS e-file rules.

• Understand the preparer’s credentials and qualifications. Attorneys, CPAs, and enrolled agents can represent any client before the IRS in any situation. Annual Filing Season Program participants may represent taxpayers in limited situations if they prepared and signed the tax return.

• Never sign a blank or incomplete return. Taxpayers are responsible for filing a complete and correct tax return.

• Review the tax return before signing it. Be sure to ask questions if something is not clear or appears inaccurate. Any refund should go directly to the taxpayer — not into the preparer’s bank account. Review the routing and bank-account numbers on the completed return and make sure they are accurate.

• Taxpayers can report preparer misconduct to the IRS using Form 14157, Complaint: Tax Return Preparer (www.irs.gov/pub/irs-pdf/f14157.pdf). If a taxpayer suspects a tax-return preparer filed or changed their tax return without their consent, they should file Form 14157-A, Tax Return Preparer Fraud or Misconduct Affidavit (www.irs.gov/pub/irs-pdf/f14157a.pdf).

 

Extended Hours

In addition to this advice, the IRS also announced nearly 250 IRS Taxpayer Assistance Centers around the country will extend their weekly office hours to give taxpayers additional time to get the help they need during the filing season. The extended office hours will continue through Tuesday, April 16.

The Springfield office, located at 1550 Main St., offers extended hours on Tuesdays and Thursdays. For questions about available services or hours of operation, call (413) 788-0284.

The expanded hours at the assistance centers reflect funding and staffing made possible under the Inflation Reduction Act, which is being used across the IRS to improve taxpayer service, add new technology and tools, as well as help tax-compliance efforts.

“This is another example of how additional IRS resources are helping taxpayers across the country,” IRS Commissioner Danny Werfel said. “Adding extra hours provide more options for hardworking taxpayers to get help with their tax issues. The IRS is continuing to work hard both during the upcoming tax season and throughout the year to find ways to make it easier for people to interact with us.”

Taking the Ball … and Running with It

By
Cesar Ruiz says the planned facility could make Holyoke the “sports capital of New England.”
Features Special Coverage

Holyoke Conceptualizes Olympic-style Sports Complex

Cesar Ruiz says the planned facility could make Holyoke the “sports capital of New England.”

Cesar Ruiz says the planned facility could make Holyoke the “sports capital of New England.”

 

Cesar Ruiz admits that the first time he and Holyoke Mayor Joshua Garcia discussed the notion of bringing a sports complex to the Paper City, one that could potentially become the new home to the Volleyball Hall of Fame, the talk “pretty much went in one ear and out the other.”

That was roughly two years ago, and Ruiz said his lack of enthusiasm had less to do with the concept, which he has long championed, and far more to do with the many other things he had going on his life, especially the East Longmeadow-based home-care and healthcare staffing agency called Golden Years, the venture he started with a few partners and has led to rapid and dramatic growth, so much that he was named BusinessWest’s Top Entrepreneur for 2020.

“The feasibility study indicates that we can draw from multiple areas and bring people to Holyoke. We’re not approaching this as a regular sports facility, but a venue that can draw regionally and from several different states.”

With that company on firmer ground and, increasingly, being managed by his children, Ruiz was more responsive when the subject of a sports complex came up again at the beginning of 2023.

“Timing is important,” he told BusinessWest. “When I was asked to take a look at it again and see what it might look like … I had a completely different reaction to it.”

In fact, you could say that he took the ball and ran with it, undertaking feasibility studies; engaging Florida-based Sports Facilities Co. (SFC), which has built what Ruiz has in mind for Holyoke in several municipalities around the globe, for an initial concept; and then putting together a team, called the USA International Sports Complex Group, to advance this initiative.

Conceptual renderings of the sports complex planned for Holyoke, one that will include everything from athletic fields and indoor courts to a hotel and a new home for the Volleyball Hall of Fame.

The concept has progressed to the point where Ruiz, Garcia, other city officials, representatives of the Volleyball Hall of Fame, and other officers with USA International Sports Complex Group felt ready to announce the plans to the public.

Which they did, at a well-attended press conference at the Volleyball Hall of Fame on Feb. 6.

They announced plans for what they called “an Olympic-style sports complex,” one featuring a main indoor athletic facility that would boast everything from basketball and volleyball courts to an arcade area, laser tag, ‘boutique bowling,’ batting cages, pickleball, and more, as well as outdoor athletic facilities to include a synthetic turf field and baseball and softball fields.

These facilities come with a total price tag estimated at between $50 million and $90 million, said Ruiz, adding that, while this will be a privately funded facility, MassDevelopment and other state agencies have been approached about potential involvement.

Holyoke Mayor Joshua Garcia

Holyoke Mayor Joshua Garcia says talk of a sports complex has been ongoing in Holyoke for many years.

In an interview prior to that news conference, Ruiz told BusinessWest that he wants to make Holyoke the sports capital of New England, and this project will become the vehicle for doing so and, in the process, bring in an estimated $41 million in new economic activity to the city.

‘We want to put Holyoke on the map, starting with volleyball — this will be the new home of the Volleyball Hall of Fame,” he said. “But it will be much more than that; this facility will have several sites and include many different sports venues for people of all ages — young and old — and will also include a hotel.

“It’s a very ambitious initiative,” he went on, adding that it will be built in phases, with the first of them hopefully to be completed by the end of 2026. “The feasibility study indicates that we can draw from multiple areas and bring people to Holyoke. We’re not approaching this as a regular sports facility, but a venue that can draw regionally and from several different states.”

Garcia agreed, adding that that talk of a sports complex has been ongoing in Holyoke for many years, and it became a priority of his administration to turn the talk into action. Doing that will require leadership and partnerships on several levels, he told BusinessWest, noting that Ruiz and his administration are providing the former, while the latter will involve several stakeholders, many of them still to be determined.

“I’m excited about what this sports complex could mean for the trajectory of our city,” the mayor said. “This would be a huge part of the resurgence of Holyoke.”

 

Court of Opinion

In that interview with BusinessWest, Garcia said Holyoke likes to “punch above its weight class.”

That’s a boxing term, obviously, now used in many different contexts, to describe underdogs taking on heavy favorites, for example, or, in this case, a smaller community trying to take on initiatives perhaps more suited to larger municipalities.

Renovation of the historic Victory Theatre, an ongoing, 30-year initiative in this city, might fall into that category. And this sports complex certainly would as well, said Garcia, adding that it’s an ambitious undertaking, but a poignant next step for a community that has, indeed, been surging in recent years, and on many levels.

These include entrepreneurship — especially within the minority population, with dozens of new businesses opening in recent years, many of them in a rebounding downtown — but also housing; education; new clean-energy businesses, such as Clean Crop Technology, which uses electricity to “revolutionize food safety”; and especially a burgeoning cannabis cluster, which has made effective use of the city’s huge inventory of old mill space for dispensaries and growing facilities alike.

The next frontier, if one chooses to call it that, could — and should — be sports, said the mayor, adding that the city has a strong tradition in this realm, which crosses many sports and several decades and includes everything from volleyball to Golden Gloves boxing to the Holyoke Blue Sox baseball team.

“Holyoke is a sports city; it always has been — we have very robust youth programs, baseball, basketball, football, and more, and the pipeline goes into our high schools,” Garcia said. “And that extends to recreational softball — we have people from across this region and into Connecticut that come to Holyoke to play in two softball leagues.

“One of the things we struggle with in Holyoke is adequate space for people to play, recreationally, but also tournaments; we don’t have the kind of capacity to host large-scale tournaments,” he went on, adding that the sports complex now on the drawing board would address this need and, while doing so, bring people to the city, providing a boost to existing businesses and perhaps fueling new ones.

“Couple this need for such a facility with the fact that Holyoke is the birthplace of volleyball and home to the Volleyball Hall of Fame, and we thought that this has to happen here — it has to happen in Holyoke,” he said.

As noted, the project must clear several hurdles, starting with the securing of what is expected to be several different sites, finalization of a design, and, especially, putting the funding in place.

The outdoor component of the complex promises to feature several fields and courts.

The outdoor component of the complex promises to feature several fields and courts.

Garcia said one of the next steps in the process is to assemble a funding strategy, one that will involve bringing more investors, like Ruiz, to the table, and also likely involve public support, from MassDevelopment and other state agencies.

But several significant steps have already been taken, especially the hiring of SFC, which has a deep portfolio of sports-complex projects, including the Rhythm & Rally Sports & Events complex in Macon, Ga., touted as the world’s largest pickleball facility; Allison Sports Town, an indoor/outdoor venue in Springfield, Mo. that spans 82 acres; Emerald Acres Sports Connection in Mattoon, Ill., which features an indoor field house, outdoor fields, and a walkable retail development space; the Fort Bend Epicenter in Rosenberg, Texas, a 230,000-square-foot, multi-purpose area that houses six basketball courts and 12 volleyball courts, with a capacity of 10,000 seats; and many others.

Ruiz called SFC the “best in the industry,” and noted that one of the next steps in the process of adding a Holyoke facility to that portfolio is visiting several projects of similar size and scope and understanding all that it took to make them reality.

“They handle the feasibility part of this, from design and development to operations,” he said of SFC, adding that the company can obviously help guide the initiative from start to finish.

 

Fields of Dreams

The sports complex, its importance to Holyoke and the region, and its potential as an economic driver are neatly summed up in a letter to a committee reviewing submissions to a request for proposals for a parcel on Whiting Farms Road owned by Holyoke Gas & Electric.

“This is not a dream, but a vision already being put in place by our partnership with the SFC team,” it reads. “We will build a sports facility that the city of Holyoke will be proud of … together with SFC, we will develop one of the top sports and event destinations in Massachusetts.”

Those behind those words believe this team has the drive, the confidence, and, eventually, the means to get the project over the finish line, or the goal line — whichever sports term one chooses — and make this vision reality.

 

Five College Consortium Helps Its Member Campuses Accomplish More

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workshop at UMass Amherst
Education Special Coverage

Turning Ideas into Reality

workshop at UMass Amherst

Faculty members from all five campuses meet together in a workshop at UMass Amherst as part of a program called Building Academic Leaders in the Humanities Program.
(Photo by Dan Little)

Ina Clark recalls her experience working for the Smithsonian Design Museum in New York City, which was not a job performed in a vacuum.

“You’re not only working on your own museum, but also collaborating with the development offices of all the Smithsonian museums — and not only juggling all that, but finding positive ways for those relationships to work,” she told BusinessWest. “I love working with people to grow things, producing results they wouldn’t achieve otherwise.”

She brings the same mindset to her new role as director of Development and Sponsored Programs at the Five Colleges Consortium in Amherst, an organization that, for decades, has convened the resources of Amherst College, Hampshire College, Mount Holyoke College, Smith College, and UMass Amherst to increase the capacity of those institutions to create educational opportunities both on and off campus.

“Not everyone has the same strengths in everything, and there are certain things they wouldn’t have the budget or structure to take on,” Clark said of the five campuses, adding that this dynamic is exciting to her, in that it necessitates the collaborative work Five Colleges specializes in. “It allows some students to get experiences and opportunities they wouldn’t have on their own campus, but can have because this exists.”

Executive Director Sarah Pfatteicher agreed. “I feel like the work we do is particularly valuable and powerful at a moment that feels very divisive,” she said. “Particularly after the pandemic, we’ve all been so focused inwardly. This is all about getting people in a room to think in a bigger-picture way than they do alone, or accomplish collectively what they couldn’t do themselves — just get outside their individual interests and think of the collective good.”

And it’s a good that impacts the broader community outside the campuses, she added. “We have deep connections to our communities. The campuses can’t be healthy without healthy communities. It’s a symbiotic, mutually supportive relationship, and it’s a lovely thing.”

Clark’s nonprofit background is extensive; besides the Smithsonian Design Museum, she has worked in development at Jacob’s Pillow Dance Festival, Cooper Hewitt, the Ms. Foundation for Women, and Sesame Workshop. She also recently served as interim director of SPCA International, an animal-protection organization.

“This is all about getting people in a room to think in a bigger-picture way than they do alone, or accomplish collectively what they couldn’t do themselves — just get outside their individual interests and think of the collective good.”

At Five Colleges, “one of the many things I have found terrific in this opportunity is that you have these very brilliant people who are quite different from each other, and these campuses that are close by but have different perspectives on things, different points of view, and we have a way to pull it all together and brainstorm an idea into a stronger idea, to consider what’s possible,” Clark said.

“That’s a truly amazing idea, and hard to find in a world where people have been isolated. We have this opportunity to throw out an idea and see what happens with it because we have this network that exists around us.”

 

Gradual Growth

Historically, Pfatteicher said, the campuses have been collaborating since at least 1914, but Five Colleges officially became a 501(c)(3) in 1965. “For many years after that, it was a very small organization. So it’s been 110 years of growth to get to where we are now, with our staff, budget, and all the things we have in place.

“Our whole reason for existing is to help facilitate collaborative efforts between the campuses,” she went on. “Everything the campuses want to do together, however we can help them collaborate, our job is to figure out how to do that.”

External funding, mainly in the form of grants, makes up about 15% of the budget, paying for a series of sponsored programs, said Kevin Kennedy, director of Strategic Engagement at Five Colleges.

K-12 teachers from the Center for East Asian Studies

K-12 teachers from the Center for East Asian Studies visit the Mo’ili’ili Hongwanji Buddhist Temple in Honolulu.
(Photo by Anne Prescott)

“The vast majority of our work on the campuses is with things other than the sponsored programs — cross-registration, extensive academic program support, student research … a wide variety of areas.”

That includes a lot of academic programming, sharing curricula and faculty, some back-office and administrative operations, risk management, insurance, and shared fiber-optic network contracts, Pfatteicher noted.

“The majority of our annual budget comes directly from the campuses in the form of assessments which basically say, ‘here’s a list of the things you told me what you want to do next year, and this is what it will cost each of you.’ We have a very detailed formula about who pays for which amount, but the budget comes from the campuses.”

“People will be able to research thousands, even tens of thousands of museum objects that aren’t nearly as accessible to them with the current system.”

Clark, on the other hand, will focus mainly on the consortium’s broad portfolio of sponsored programs, which most recently includes grants from the Mellon Foundation for expanding the Native American and Indigenous Studies curricula of its member campuses and for creation of a faculty leadership-development program, as well as a host of other programs:

• Paradigm Shift is a scholarship partnership program supported by a coalition of more than 30 school districts, universities, and community organizations, aimed at helping Black and Latinx para-educators become licensed teachers.

“The focus is on creating a more diverse teaching workforce,” Pfatteicher said. “It takes people who are already in the classroom and progresses them in their career. It isn’t something that one campus can do by itself, and even Five Colleges couldn’t do it alone, but our job is to get the right people in the room — superintendents, identified para-educators, teacher training programs, someone to manage grant funding … it takes a village, if you will.”

“That’s a perfect example of the work being done here in a collaborative way,” Clark added. “It goes beyond the five campuses and has a tremendous regional benefit.”

• The Center for East Asian Studies in Northampton supports K-12 teachers in learning, and then teaching about, East Asia. It draws on the resources of the Five College member campuses to conduct seminars, institutes, conferences, and workshops.

• Learning in Retirement is a group of retirees, mainly from the field of education, who provide peer education to one another. “It started with faculty members moving into retirement who wanted to stay involved and wanted to help each other, but the membership has gone beyond that,” Clark said.

• Five Colleges also received funding from the National Endowment for the Humanities to support an upgrade of six museum collections and cataloging systems — five from the member colleges and also Historic Deerfield.

“This effort will help the museums to better their collections, and allow them to share their collections with the world,” Kennedy said. “People will be able to research thousands, even tens of thousands of museum objects that aren’t nearly as accessible to them with the current system.”

Those are just a few of the ongoing initiatives. While some of these programs exist for the long run, others — like the museum project — will eventually meet a goal and then end. Meanwhile, ideas for new collaborations continue to be generated by the colleges themselves.

Participants in the Paradigm Shift program

Participants in the Paradigm Shift program, which helps para-educators of color in local K-12 schools earn their teacher’s licenses.
(Photo by Ben Barnhart)

“For the most part, the campuses come here with a project they’d like to undertake: ‘can you help us find funding for this one?’” Pfatteicher explained. “Or one campus might come forward and say, ‘we’ve been talking to a funder about a program, and it occurred to us it might be more powerful to do it collectively.’ So they hand over that conversation with the funder to Five Colleges, and we seek funding.”

And new concepts — and discussions — are always emerging, Clark said. “Ideas can come from one campus, and we help bring it to the full group.”

 

Strength in Numbers

Pfatteicher emphasized that many valuable programs, especially of the collaborative nature, couldn’t be accomplished without a central convener like the Five College Consortium.

“Campuses in theory can run these things on their own, but the more complicated, detailed collaborations are harder,” she noted, adding that even helping students on one campus find what courses are offered on another, and helping them access those resources, is a much-improved process when Five Colleges is involved.

“Something as simple as cross-registration has a whole set of things you need to accomplish,” she added. “We happen to specialize in being the glue in the middle that helps pull it all together.”

Kennedy agreed. “The three campuses, individually, are overextended; they simply don’t have the funding to do all these programs. Five Colleges gives them an opportunity to access things they may not be able to access otherwise as a group.”

Examining the Impact of the American Families and Workers Act of 2024

By Contributor
Accounting and Tax Planning Special Coverage

Potential Tax Relief

By Kristina Drzal Houghton, CPA

This article, written on Feb. 2, highlights the U.S. House of Representatives’ Jan. 31 passage of the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). However, it’s important to note that the details are subject to change pending the Senate’s vote and the ultimate signing into law by the president.

Despite concerted efforts to get the bill to the Senate in time for the current tax-filing season, this deadline has unfortunately lapsed, causing some concern over timing and efficacy. However, lawmakers remain optimistic about swift passage in the subsequent stages, aiming to minimize the impact on the IRS and enable prompt relief for taxpayers.

 

INDIVIDUAL TAX RELIEF

One of the core components of this legislation includes an increase in the child tax credit, a move set to benefit families with children across the nation. This concept is further strengthened by the introduction of a refundable portion determined per child, a clear advantage for growing families.

The proposed bill introduces a single change regarding the child tax credit. Currently, the credit is $2,000 per child for taxpayers who do not exceed certain income thresholds. A portion of this credit can be refunded up to $1,600 in 2023. The refundable portion is limited based on the number of qualifying children and the taxpayer’s earned income.

Under the proposed law, the refundable amount will be calculated per child, resulting in a total refundable amount. This change applies to the 2023-25 tax years. Additionally, the maximum amount of the refundable credit will be increased to $1,800 for 2023, $1,900 for 2024, and $2,000 for 2025. The overall child tax credit will also be adjusted for inflation from 2024 onward.

Kristina Drzal Houghton“One of the core components of this legislation includes an increase in the child tax credit, a move set to benefit families with children across the nation. This concept is further strengthened by the introduction of a refundable portion determined per child, a clear advantage for growing families.”

Notably missing from this legislation was a provision that addresses an aspect of the state and local tax deduction, which was capped at $10,000 by the Tax Cuts and Jobs Act in 2017. The $10,000 cap applies to taxpayers filing either single or married filing jointly. Advocates were hoping for a provision to increase the married filing joint cap to be twice the single cap and eliminate that marriage penaly.

 

BUSINESS TAX RELIEF

In a bid to support the innovative spirit of America, the Tax Relief for American Families and Workers Act also includes provisions to delay the requirement to capitalize and amortize research and experimentation expenditures. This is further bolstered by an extension of the 100% bonus depreciation for properties in service prior to Jan. 1, 2026.

For the hardworking business sector, the Act provides an increase in the Code Sec. 179 deduction limitation and expense limitation for property put into service post-2023.

 

Research and Experimental Expenses

Under current law, domestic research and experimental expenditures incurred in tax years starting after Dec. 31, 2021 must be amortized over five years. Previously, these expenses could be immediately deducted in the year they were paid or incurred. Research or experiment costs outside the U.S. are deductible over a 15-year period. The proposed law would postpone the application of this rule for research and experimental costs related to domestic activities until tax years starting after Dec. 31, 2025. There will be no change for activities outside the U.S. The bill includes transitional rules for research credits and accounting changes.

Observation: H.R. 7024 provides that a taxpayer can reflect the retroactive application of Section 174 expensing via a change in method of accounting with either a one-year Section 481(a) adjustment or an elective two-year Section 481(a) adjustment. Alternatively, eligible taxpayers generally would be permitted to amend their first tax year beginning on or after Jan. 1, 2022, to reflect current expensing of eligible Section 174 expenditures. Due to the late passage of this bill, businesses may want to consider applying for an extension of time to file their returns so they can analyze which of the three options is most beneficial for them.

 

Business Interest Limitation

Under current tax law, prior to 2022, the calculation of adjusted taxable income for the business interest expense limitation (Code Sec. 163(j)) excluded deductions for interest, taxes, depreciation, amortization, or depletion (IBITDA). However, starting from 2022, only deductions for interest and taxes were considered, excluding depreciation, amortization, and depletion. The new law would reintroduce depreciation, amortization, and depletion for tax years starting after Dec. 31, 2023, and before Jan. 1, 2026. Additionally, taxpayers can choose to include depreciation, amortization, and depletion for tax years beginning after 2021 and before 2024.

Observation: H.R. 7024 provides that a taxpayer can reflect the retroactive application of using IBITDA to calculate the interest limitation. The bill does not provide as much information on how to effect the retroactive elction as it does with Section 174. Taxpayers with large limitation in 2022 may find it advantageous to amend their returns for this retroactive adoption. It is also unclear if you can elect to provide the provision for 2023 without amending 2022.

For the hardworking business sector, the Act provides an increase in the Code Sec. 179 deduction limitation and expense limitation for property put into service post-2023.

 

Bonus Depreciation

The most recent change, under the Tax Cuts and Jobs Act of 2017, allowed for immediate expensing of qualified property placed in service between Sept. 17, 2017 and Jan. 1, 2023 (100% bonus depreciation). Starting in 2023, the first-year depreciation gradually reduces (80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026) until it is eliminated for property placed in service in 2027. The proposed bill extends 100% bonus depreciation for property placed in service before Jan. 1, 2026 (Jan. 1, 2027 for longer production period property and certain aircraft). In 2026 and 2027, the 20% and 0% bonus depreciation rates would continue to apply.

 

Increased 179 Deduction

Under current law, businesses can choose to expense certain qualifying property instead of depreciating it. This includes tangible personal property, off-the-shelf computer software, and qualified real property used in the active conduct of a trade or business. The deduction is limited to an inflation-adjusted amount. In 2024, the deduction is capped at $1.22 million, reduced dollar-for-dollar by expenses exceeding $3.05 million.

 

Employee Retention Credit

The Employee Retention Tax Credit (ERTC) was established in March 2020 during the COVID-19 pandemic. The purpose of the credit was to provide businesses with a credit against certain payroll taxes if they retained employees during lockdowns that may have impacted their income. The American Rescue Plan Act of 2021 extended the credit and expanded its scope to include Medicare taxes and dropped the precentage threshold for revenue decrease establishing eligibility for the credit. Taxpayers were able to make ERTC claims until April 15, 2025, despite the expiration of the period for which the credit can be claimed.

The IRS has identified fraudulent claims made by taxpayers, often unknowingly, facilitated by third-party processors (COVID-ERTC promoters) who boldly advertised on television and plagued businesses with calls implying that almost any business qualified due to facts and circumstances. To address this issue, the IRS temporarily suspended the acceptance of new claims in late 2023 while investigating potential instances of fraud in its backlog. Additionally, an amnesty program was established for taxpayers to voluntarily withdraw unqualified claims or repay the credit without penalty.

The proposed bill aims to combat fraudulent claims by increasing penalties for COVID-ERTC promoters, extending the limitations period on assessments of ERTC claims to six years, and imposing reporting requirements on COVID-ERTC promoters similar to promoters of listed transactions. Notably, the bill sets Jan. 31, 2024 as the deadline for making ERTC claims.

 

In Addition

In an effort to reduce compliance burdens on businesses, the Act raises the filing threshold for Form 1099-NEC and 1099-MISC from $600 to $1,000 for payments post-Dec. 31, 2023. The $1,000 will be adjusted for inflation.

 

IN SUMMARY

In essence, the Tax Relief for American Families and Workers Act of 2024 is a comprehensive package addressing varied aspects of the American economic landscape with a keen eye on relief and progression. These changes aim to promote economic growth, support independent contractors and businesses, and address housing affordability concerns.

While the House’s passage of the Act marks a significant milestone, it’s important to keep a vigilant eye on the upcoming Senate proceedings, as the Act still requires approval there before becoming law.

 

Kristina Drzal Houghton, CPA is a partner at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

 

Location, Access, ‘Differentiators’ Help Holyoke Mall Thrive Amid Challenges

By
Commercial Real Estate Special Coverage

Weathering the Storms

Lynn Gray

Lynn Gray, general manager of the Holyoke Mall.

As she talked with BusinessWest, Lynn Gray and her staff were gearing up for February school vacation.

It’s always a busy time at the Holyoke Mall, which Gray serves as general manager, as young people and families look for things to do. But these days, it’s even more so as ever-larger amounts of the mall’s 1.6 million square feet of space become dedicated to entertainment-related ventures rather than pure retail — although there’s still plenty of that as well.

Indeed, over the past several years, former retail spaces have given way to tenants like All In Adventures (billed as the ‘ultimate escape destination’), Altitude Trampoline Park, Round1 Bowling & Arcade; Planet Fitness; and Billy Beez, a massive play area that is home to twisting slides, sports courts, tunnels, trampolines, and more.

This is a national trend, said Gray, noting that, as major retailers — ranging from Sears and JCPenney to Christmas Tree Shops and Best Buy — close stores, their former spaces have found new lives in non-retail-related uses. And malls have become even busier during Christmas break, February vacation, and other times when the weather is less conducive to outdoor fun.

“People are looking for something to do that week indoors,” she said. “During February break, it will be pretty busy, especially if the weather is inclement. Then in April, it will be a little softer just because things are warming up a little, but it’s still a busy week for us; we staff up for it, and retailers and other tenants have a lot of specials.”

This trend is just one of the storylines at the mall, perhaps the largest commercial real-estate property in the region, and one that has become a topic of conversation and speculation in the wake of a changing retail landscape, one that has seen many national chains downsize or even disappear from the landscape (Sears and Toys R Us, for example), ever-larger amounts of shopping conducted online, and some malls, including two locally (Eastfield and Enfield), being repurposed into mixed-use facilities or moving quickly in that direction.

“While we were shut down during the pandemic, we were still concurrently trying to roll with the changes that were about to come over the next couple of years. Some brands went away, and some remained relevant.”

Gray, who first worked at the mall when she was 15 selling gift certificates and has fashioned a career managing such facilities, said the facility has certainly been impacted by these trends, but, while some other malls are suffering, Holyoke continues to thrive, and for several reasons.

She lists everything from its incredible location — at the intersection (literally) of the Mass Pike and I-91 (off which it has its own exit) to its still-healthy mix of retailers, restaurants, and entertainment-based businesses, to some of that downsizing among many retail giants. Indeed, Holyoke now boasts the only locations for Best Buy, Apple Store, and Macy’s for at least 30 miles in any direction, and in some cases, it’s a much larger area.

The Holyoke Mall

The Holyoke Mall encompasses 1.6 million square feet of space and is in an almost constant state of change.
(Photo by Glenn Labay, Aerial Camera Services)

And with those stores and that location … people want to get to Holyoke, and they can get there, rather easily, she said, adding that these ‘differentiators,’ as she called them, not only attract visitors, but new tenants as well.

“We’ve certainly seen the benefits of that market consolidation,” she said, adding that this and other factors contributed to what was a very solid holiday season at the mall. While the final numbers are not in yet, most mall tenants came out of December happy with their results, she noted

And those same retailers are saying that, while overall visitation is down slightly — data shows the mall is drawing 99% of the total visitors it drew in 2021 and 98% of the number in 2022, 9 million overall — those who do find their way there are generally spending more, on average.

“We’re easily accessible off of 90 and 91, and we’re in a position to tap a much larger market than some of the regional properties that were or still are in the market.”

Meanwhile, the ongoing change and evolution experienced by every mall continues at Holyoke, said Gray, adding that there have been several intriguing additions in recent months and renovations planned at several outlets.

For this issue, we talked with Gray about all that and much more as the mall braces first for February school vacation, and then continued response to that changing scene in retail.

 

Setting Sale

As she walked and talked with BusinessWest, Gray stopped at Monsoon Bistro, one of the newer additions to the mall, taking the spot formerly occupied by Ruby Tuesday near the Macy’s entrance.

It’s one of many new restaurants that have opened in the mall over the past year, several of them growing local businesses, she said, adding that these are some examples of how malls, and especially the one in Holyoke, are in a state of nearly constant change. These changes reflect national trends, changes to the economy, and ebb and flow within the world of retail.

one of many recent additions at the Holyoke Mall

Garage, a casual clothing brand for young women, is one of many recent additions at the Holyoke Mall.

Overall, 25 new brands have called the mall home since the pandemic arrived in 2020, she said, adding that COVID certainly contributed to the changing of the landscape.

“While we were shut down during the pandemic, we were still concurrently trying to roll with the changes that were about to come over the next couple of years,” she explained. “Some brands went away, and some remained relevant.”

Elaborating, Gray noted that 24,000 square feet of mall space got converted into new openings over the past year alone, with 12 new businesses setting up shop.

“It was a good mix of retail, which is still our bread and butter,” she said, listing new arrivals such as Garage (which touts itself as a “casual clothing brand for young women who are fun and effortlessly sexy); Snipes, a global streetwear retailer now boasting more than 450 locations; a few new jewelers, including Mandati, King’s, and the Inspiration Co.; a Verizon store; and others.

“Those types of facilities are bringing a more eclectic mix of shoppers — all ages, all groups.”

Meanwhile, as noted, the new arrivals extend to the restaurant side of the ledger and even the food court, with the addition of El Burrito, a growing local venture that took over space formerly occupied by Wendy’s; and Terra Nossa Brazilian Grill, which replaced a former McDonald’s.

In most respects, 2023 was a better-than-average year for signing new leases with smaller, sometimes local retailers, an annual assignment for malls, while also backfilling some of the much larger spaces left by the departure of major retailers, in this case ranging from Sears to Toys R Us to A.C. Moore.

Often, such backfilling takes years, Gray said, noting, for example, that the Sears at the Holyoke Mall has been closed for nearly a decade, and its space has not yet been fully repurposed. Sports Zone, a specialty operator featuring sports memorabilia, is occupying the first level of that large footprint, and in years past, Spirit Halloween has taken some of that space on a seasonal basis, but the second level remains vacant.

But many spaces have been successfully filled, she went on, adding that this was the case with the departure of Christmas Tree Shops (which went to Holyoke Crossing and then eventually closed that location), with that space now occupied by Bob’s Stores, and the former Sports Authority space, now occupied by Dick’s Warehouse Sale.

Still, increasingly, these spaces are going to more entertainment-related uses, said Gray, noting the arrival over the past several years of several such ventures that have taken rather large footprints at the mall.

For example, Planet Fitness and Altitude have each claimed 20,000 square feet in space formerly occupied by Babies R Us, she said, noting that both arrived just prior to the pandemic. Round1, which arrived around that same time, is also a large tenant, with 20 bowling lanes and a number of arcade games, as is Billy Beez.

 

What’s in Store

And these new ventures are thriving in these spaces, she said, adding that the mall’s location makes them easy to get to, and together, they make the mall a more attractive destination for families, who can package a visit to one or a few of those facilities, and then a stop for lunch, into a day at the mall during February vacation or any other time when being indoors in preferable.

El Burrito, a growing local venture

El Burrito, a growing local venture that took over space formerly occupied by Wendy’s, is one of several new restaurant options at the mall.

The Planet Fitness facility is in a different category, she went on, but it is also doing very well in this mall’s location. “It’s easily accessible … people go there before work and after work. Their membership is very comparable to their off-mall locations, and you can walk by there on a Tuesday afternoon and see lots of people there.”

Overall, the mall is in a better place than it has been in terms of square footage currently occupied, she said, adding that policies set by mall owner Pyramid Corp. did not permit more detail on that subject. And, by and large, it is in a good place when it comes to taking on the many challenges facing malls today, for those reasons mentioned earlier.

“We’re easily accessible off of 90 and 91, and we’re in a position to tap a much larger market than some of the regional properties that were or still are in the market,” she said. “And then having differentiators, like the only Macy’s, the only Apple, the only Best Buy in the market, that really sets us apart for retailers, restaurants, and entertainment venues looking for a new home. Having those traffic draws is very attractive to potential new tenants.”

Looking ahead as far as she can, Gray said the mall is positioned as well as any mall can be to absorb the many changes to the retail landscape.

Indeed, data shows that those who come to the mall — and she said it is still a good mix of young and old — are actually coming more often, because of all that now exists under that collection of roofs.

“People are coming more frequently because of the entertainment offerings and lifestyle offerings,” she told BusinessWest. “Twenty years ago, there wasn’t a Planet Fitness at your local shopping mall. Now that there is that option, people are visiting the property more.

“Those types of facilities are bringing a more eclectic mix of shoppers — all ages, all groups,” she went on. “And then, you have places like Altitude and Round1 and Billy Beez, where your families, your teens, they’re coming out for birthday parties, tournaments, or the different types of events they have going on. They’re coming, and they’re staying for a while.”

When asked about what the landscape will look like in five or 10 years, Gray said change will remain a constant — in retail and in entertainment — with up-and-coming chains in the former, and new experiences, such as next-level escape rooms, in the latter.

The goal at the Holyoke Mall is to be at the forefront of all of that, she said, adding that the facility has been there for the first 45 years of its existence, and she intends to keep it there.

 

Author Keeps Memories Alive of Lost Quabbin Towns

By
Elena Palladino wants everyone who visits the Quabbin — or ever drinks its water — to contemplate the loss and sacrifice involved in its creation.
Features Special Coverage

Gone but Not Forgotten

Elena Palladino in the house that inspired her book, Lost Towns of the Swift River Valley.

Elena Palladino in the house that inspired her book, Lost Towns of the Swift River Valley.

 

Elena Palladino recalls that, when she and her husband first walked through their stately white home in Ware, they noted that some of the pieces didn’t really seem to fit.

Indeed, the home is Colonial Revival in style, but many of its fixtures, including the pocket doors with ornate brass pulls, were Victorian. Their presence — which made the home even more attractive, and intriguing, in their minds and helped compel them to buy it — presented somewhat of a mystery.

One that was solved when one of their new neighbors referred to the property as the ‘Quabbin house.’

Palladino would eventually learn that this home was built by Marion Andrews Smith, who had lived in Enfield, one of the four towns flooded and essentially wiped off the map to build the Quabbin Reservoir; Dana, Greenwich, and Prescott were the others.

“It’s a very beautiful place. But I do think it’s important to remember that’s it’s a beauty that comes from the loss of those towns and the loss of community.”

Smith, as Palladino would also learn, was the last surviving member of a prominent mill-owning family that actually had a section of Enfield, known as Smith’s Village, named after them. Smith certainly didn’t want to leave Enfield, a town that she and other family members were very involved with, and she was one of the last residents to depart. She wanted to move the large Victorian home in which she lived to another location, but it wasn’t logistically feasible to do so. So she took what she could with her and made those pieces — everything from doors to molding; floorboards to wainscotting — part of the home she built in Ware.

But Smith’s story did far more than solve a mystery surrounding Palladino’s new home.

It inspired her to want to dig deeper into the lives of those who, like Smith, were told to pack up and leave and then watch as their community was obliterated to bring much-needed water to the fast-growing city of Boston and its suburbs. It inspired her to want to know more about what those final years, months, weeks, days, and even hours were like.

So, Palladino, secretary to the board of trustees at Smith College, started the research that would eventually lead to her first book: Lost Towns of the Swift River Valley: Drowned by the Quabbin.

It tells the stories of three individuals who were forced to leave their lifelong homes to make way for Boston’s reservoir — Smith; Willard ‘Doc’ Segur, the valley’s beloved country doctor and town leader; and Henry Howe, Enfield’s postmaster and general-store proprietor.

The book came out in late 2022, and over the ensuing year, Palladino has crisscrossed the state on a book tour of sorts that took her to libraries and historical societies. She talked about her book and the research that went into it, but also about her home and the connection it provides to Smith, and an intriguing bill now in committee that seeks regional equity and recompense for the Swift River Valley and its people (more on that later).

Through the book and the talks, she said she believes she’s created a greater understanding of all that was lost to build the Quabbin. Most understand fully what was gained, she added, but her stories help convey the price that came with this 20th-century engineering marvel.

Elena Palladino says learning the story of her Ware home

Elena Palladino says learning the story of her Ware home inspired her to dig deeper into the lives of those displaced by the Quabbin.

It is this profound loss that she now feels each time she visits the Quabbin, which is only 10 minutes from her home.

“It’s a very beautiful place,” she said. “But I do think it’s important to remember that’s it’s a beauty that comes from the loss of those towns and the loss of community.”

For this issue, BusinessWest talked with Palladino about her home and her book, but mostly about the Quabbin towns and why, 86 years after Swift River Valley residents gathered for a farewell ball to mark the demise of their communities — “A Last Good Time for All” was how it was billed — it’s important that their stories never be forgotten.

 

Flood of Memories

Palladino has never met Marion Andrews Smith — she was born decades after Smith died.

But she feels a very powerful connection to the woman. Living in the home she built and spent her final years in is a big part of it, obviously, but there’s much more.

“It started as a personal project, and the initial research was mostly on our house. As I learned more about Marion … it seemed like every bit of research led to more.”

Indeed, as she came to know more about Smith through her research and then through meetings with Marian Tryon Waydaka, whose parents were Smith’s groundskeeper and chauffeur — and named their daughter after their employer — she came to fully understand both Smith’s taste in home furnishings and her incredibly strong will in the face of not only losing her home to a public-works project, but so much more.

She learned, for example, that Smith had family members who died in 1928, 1929, and 1932 and were buried in the valley, knowing full well they would have to be eventually moved elsewhere as the reservoir became reality.

“It could have been denial or defiance; it may also have been that she hadn’t decided where else she would like to move,” Palladino said. “But I thought that was a very interesting decision.”

She also learned that Smith was one of the very last residents to leave in the summer of 1938 and never did sell her property to the state; her land and home were taken by eminent domain, although she did eventually settle with the state.

Palladino grew up in Sturbridge, just east of the Quabbin, and her father and brother loved to fish the reservoir. So, like most who grew up in the 413, she knew the basics about how that resource was created and how four towns disappeared in the process.

It wasn’t until she and her husband bought the house on Highland Street after she took the job at Smith College — and they learned more about the home and the woman who built it — that her subtle interest in the Quabbin towns and the people who lived there became a fascination, and the subject of a book.

“The book started as research — I’ve always loved history and old homes — but then, because I was able to find out so much about Marion and her story was even more fascinating because it was integrated with the Quabbin towns, it became a much bigger project than I ever thought it would be.

“It started as a personal project, and the initial research was mostly on our house,” she went on. “As I learned more about Marion … it seemed like every bit of research led to more. Because she was from such an important family, there was lots to find about her; she was very involved, as were her family members, in various town organizations.”

Palladino took full advantage of the many resources available to those who wish to know more about the Quabbin towns and those who lived there, including a large collection at the UMass Amherst Library; the Swift River Valley Historical Society in New Salem; the Visitors Center at Quabbin Park in Belchertown; various scrapbooks; several books on the subject, including Donald Howe’s Quabbin, the Lost Valley; and meeting minutes from various organizations, including the Quabbin Club, a women’s club in the valley that existed from the late 1800s until the towns were disincorporated.

 

The Plot Thickens

Palladino’s book focuses on three of the last residents to leave the valley, and through those stories she conveys those final days through their eyes.

“There are many great books about the Quabbin, but this one is a little more personal in nature,” she said. “I was most intrigued by what it like for Marion, and any of the people who lived there, to have to leave; it’s a more personal side of the story.

“It was a long process,” she went on. “The Ware and Swift River Acts were passed in 1926 and 1927, and even before that, for about 30 years, the idea of an enormous reservoir was out there — it was discussed. From 1895 on, people knew this might come to pass and that a reservoir might be built here. When it finally became real, it was devastating for the people who lived there, but it also didn’t feel quite real because there was such a long period of time during which the towns were destroyed, and the dam and the dike were built — it was about 10 years.”

She said some left quickly after their homes were purchased by the state, while others who sold leased them back and stayed in the valley while deciding where to go next. And then, there were some who stayed until the very end.

“I think that must have been a difficult choice to make,” Palladino told BusinessWest. “By 1938, it was a scene of destruction; by then, many homes had been demolished and burned, all of the trees in the valley had been cut down, all of the brush below the water line had been cut and burned, and the buildings that were still standing in 1938 were quite dilapidated because they weren’t being cared for.

“Their town would have been unrecognizable,” she went on, adding that, despite all this, some did stay to the bitter end.

Palladino has tried to convey the hardships and emotions experienced by all those who lived through the demise of the Quabbin towns during talks about her book, more than 40 of them, over the past year or so.

“It was wonderful to speak locally, to people who know a lot about the Quabbin and live near the Quabbin, but it was also good to speak in Eastern Massachusetts towns where the story is less well-known,” she said. “There are plenty of people who know that their water comes from the Quabbin, but far fewer who really know how the Quabbin came to be.”

Elena Palladino wants everyone who visits the Quabbin — or ever drinks its water — to contemplate the loss and sacrifice involved in its creation.

Elena Palladino wants everyone who visits the Quabbin — or ever drinks its water — to contemplate the loss and sacrifice involved in its creation.

Through her talks, she has also made people aware of legislation, now in joint committee, that would, among other things, establish a Quabbin host-community fund through a 5-cent levy on every 1,000 gallons of water drawn from the reservoir.

“It’s pretty modest — it would only raise about $3.5 million a year,” she said. “But those funds could be used by the towns around the Quabbin for infrastructure and other capital improvements.”

 

The Loss Column

Palladino wasn’t at the farewell ball in 1938, obviously. But in some ways, she feels like she was.

Through her research, she has come to understand, as perhaps few can, what it was like to be at Enfield Town Hall when the clock struck midnight, and this wasn’t actually a town anymore.

It was part of a valley that would, over the next several years, be flooded with more than 400 billion gallons of water.

That ball, and the many extreme forms of loss experienced by those who were there — and all those who lived in the Quabbin towns — is what she thinks about when she visits the reservoir.

And she implores all those who visit or even drink the water to do the same.

 

Chicopee Takes Full Advantage of Its Location

By
Community Spotlight

Community Spotlight

Facemate property

An architect’s rendering of the mixed-use facility planned for the last remaining parcel on the Facemate property, one that will bring more than 100 units of affordable housing to the city.

Like most other cities and towns, Lee Pouliot says, Chicopee has a housing shortage.

It’s evidenced by everything from lengthy waiting lists at apartment complexes and skyrocketing rents to rising prices for single-family homes, said Pouliot, the city’s planner, adding that there are several projects in various stages of development that may bring some relief.

One is long-anticipated new construction at the last remaining parcel from the former Facemate complex, a project that will add an anticipated 106 units of affordable (workforce) housing to the city’s inventory.

“Housing is a huge issue here and around the Commonwealth, so to get construction of 106 new units is very significant for us,” he said, referring specifically to the Facemate project. “And this is new construction from the ground up, so it will be a fairly significant change to that area; we’re pretty excited.”

There’s also progress on the remaining buildings at the former Uniroyal complex, which has been closed and mostly vacant for more than 40 years. Pouliot said the city is close to naming a preferred developer for a project that will make housing the focal point of redevelopment of the former manufacturing buildings.

“Chicopee is really the crossroads of the region. It’s easy to get here from anywhere, which attracts many different kinds of businesses.”

Then there’s the massive — as in nearly 1 million square feet — Cabotville complex in the center of the city. Now vacant for more than four years, the property will likely be going to auction again shortly, said Pouliot, adding that the city is hoping that a buyer experienced with mill conversions will obtain the property and make housing its primary new use.

But momentum on the housing front is just one of the developing stories in this city of more than 55,000 people, the second-largest city in the region.

Indeed, Melissa Breor, director of the Chicopee Chamber of Commerce, cited everything from some new businesses, all minority-owned, in the city’s center — including Island Spice restaurant, specializing in Sri Lankan cuisine, and a new location for Hot Oven Cookies — to renovation of the former city library into space for community events, to progress with her own chamber, which, like most all others in the region, has had to downsize and battle back from the difficult COVID years.

“There’s many exciting things happening here,” said Breor, who grew up in the city, left, and returned to get more involved in the community. Overall, she noted, Chicopee continues to take full advantage of its many assets, and especially its location and accessibility; there’s not one, but two Mass Pike exits funneling traffic into the city, which also has I-91 and Routes 291, 391, and 33 running through it.

“Chicopee is really the crossroads of the region,” she said. “It’s easy to get here from anywhere, which attracts many different kinds of businesses.”

Other assets include Westover Metropolitan Airport and several industrial parks created on surplus land at the massive Air Reserve base, both now overseen by Andy Widor, president and CEO of Westover Metropolitan Development Corp. (WMDC), which operates the airport.

Melissa Breor

Melissa Breor says Chicopee has many tangible assets, especially its location along several major highways.

He said the airport is somewhat of a hidden gem, and one of its priorities is to make it less hidden. The facility is home to maybe 20 aircraft of various sizes. Meanwhile, many chartered flights, such as those for area sporting events, and private jet flights, including many for the Basketball Hall of Fame induction ceremonies each fall, will use Westover as an entryway to the region. It also hosts public charters to Atlantic City operated through Sun Country Airlines, service that started last August.

“We like to say that the airport connects Chicopee to the world,” said Widor, adding that a recent study undertaken by the UMass Donohue Institute shows that the airport and airparks operated by the WMDC are an “economic-development engine for the region,” contributing more than $2.2 billion in economic output and roughly 8,500 jobs around Massachusetts annually.

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at Chicopee and the many forms of momentum in evidence there.

 

Progress Report

Pouliot told BusinessWest that redevelopment of the Uniroyal complex, once one of the city’s largest employers, has been a story with many twists and turns, with its first chapters written when Ronald Reagan was patrolling the White House.

The latest chapter holds enormous promise for helping alleviate Chicopee’s housing crisis while bringing new vibrancy to the Chicopee Falls section of the city, he said, adding that the city issued a request for proposals for the four remaining buildings on the site last year, received proposals from two different groups, and has seen one of them recommended by an evaluation team.

Negotiations continue with that group on a land-disposition agreement, he went on, noting that, by spring, the city should be in a position to announce both a plan for the property and the group that will carry it out.

“The city’s hope is that a developer gets control of this property that has experience with mill conversion from the ground up. These are challenging projects, and experience is critical in navigating everything from building codes to financing strategies.”

“We’re anticipating mixed use, with a significant housing component,” he said, adding that negotiations continue on the number of units that will be created in what will be a massive undertaking that will likely take several years to complete.

The timeline is much shorter for redevelopment of what’s known as the Baskin parcel at the Facemate complex, a project being undertaken by Brooklyn-based Brisa Development.

Plans call for a mixed-use development which, in addition to the 102 units of workforce housing, will also include a restaurant and a sports complex that will include indoor and outdoor athletic fields, batting cages, elevated running tracks, climbing walls, and outdoor spaces “encouraging community engagement,” according to the Brisa website.

The residential portion of the project, new construction, will commence first, said Pouliot, adding that ground will likely be broken this spring or summer.

As for Cabotville, the property that casts a huge shadow over the city’s center, literally and figuratively, Pouliot said the property has had several owners over the past few decades, with none of them able to advance projects to create housing or other uses. The property is vacant — the last remaining commercial tenants were evicted as the building was closed due to code violations in 2022 — and secure, but the clock is certainly ticking.

“From an engineering perspective, it’s structurally sound, but the longer a building sits vacant, the greater the risk of its condition deteriorating,” he said, adding that, while there has been discussion of the city potentially acquiring the property, as it did with the Uniroyal complex in 2009, officials are leery about taking on another huge development project until the Uniroyal project advances.

Andy Widor

Andy Widor is working to build out all aspects of Westover Airport.

“The city’s hope is that a developer gets control of this property that has experience with mill conversion from the ground up,” Pouliot told BusinessWest. “These are challenging projects, and experience is critical in navigating everything from building codes to financing strategies.”

While those initiatives unfold, some municipal projects are moving forward as well, he said, referencing long-awaited work to renovate the former library, closed since 2004.

Bids have been received for the project, estimated at $18 million, with the goal of transforming it into programming space to host everything from Chamber of Commerce business training events to programs staged by nearby Elms College. It will also be the permanent home of the Center Fresh Market, a farmer’s market that traditionally sets up in the plaza outside the building.

The city is also close to bidding the next phrase of City Hall renovations, he said, adding that this phase involves renovation and modernization of office suites.

 

Changing Landscape

As she talked with BusinessWest in the chamber’s tiny office on Center Street, just a few hundred yards from City Hall, the library, and Cabotville, Breor said Chicopee is a community seemingly in a constant state of change.

Whether it’s new businesses, many of them national chains, on Memorial Drive, the city’s main commercial throughfare, or new or growing local entrepreneurial ventures, such as the new tenants just a block away on Center Street in property redeveloped by the Valley Opportunity Council — Hot Oven Cookies and Island Spice — the business landscape is always changing, she said.

Chicopee at a Glance

Year Incorporated: 1848
Population: 55,560
Area: 23.9 square miles
County: Hampden
Residential Tax Rate: $14.76
Commercial Tax Rate: $31.78
Median Household Income: $35,672
Median Family Income: $44,136
Type of Government: Mayor; City Council
Largest Employers: Westover Air Reserve Base; J. Polep Distribution Services; Callaway Golf Ball Operations; Dielectrics; MicroTek
* Latest information available

Breor came to the chamber in the summer of 2022 after working at UMass and, before that, with the Greater Northampton Chamber of Commerce as Hampshire County tourism coordinator. Desiring to return home — she grew up in Chicopee Falls — she originally applied for an open position at the chamber handling marketing. But while interviewing for that job, the director’s position became open, and she adjusted her sights.

She now presides over a chamber, that, like most all others in the region, has become smaller in just about every way, from the size of its office to the number of members (currently about 250) to the size of its staff — at present, it’s just Breor and a one-day-a-week staffer focused on marketing and social media.

But the chamber remains a powerful force for a business community that is diverse in every sense, she said, whether it’s providing technical assistance, staging networking events, or collaborating with other area chambers on larger projects.

One such event, slated for March, will benefit the Food Bank of Western Massachusetts (recently named BusinessWest’s Top Entrepreneur for 2023). The rice-and-beans drive and fundraiser will also involve the Springfield, Holyoke, Westfield, ERC5, and West of the River chambers, said Breor, adding that there are other collaborative efforts on the calendar or in the planning stages, including legislative events and a softball tournament to be undertaken with the Holyoke chamber to be called the Battle of the Bridge.

At Westover Airport, meanwhile, Widor is working to build out all aspects of that operation, from planes based there to flights in and out, and he believes there is great potential to do so.

Renovation of several hangars on the property, an ongoing initiative, presents the opportunity to house more planes of all sizes, including the largest private jets, at the airport, he noted.

Meanwhile, the airport’s location — close to Springfield and Hartford as well as the many colleges in the region — is an asset, as is the relatively new pilot-controlled lighting at the facility, which enables it to remain open for landings 24 hours a day.

Widor said the airport, which shares runways with the Air Reserve base, serves a number of businesses and institutions — bringing guests for Hall of Fame induction week and headliners for performances at MGM Springfield facilities to the region, for example, as well as organs for transplant at Baystate Medical Center — and there is considerable room for growth.

Chicopee’s leaders believe the same is true for the city — and its diverse business community — as a whole.

 

Classes Help Employees Communicate Effectively

By
Jennifer Law
Professional Development

Professional Development

Jennifer Law

Jennifer Law says the class in effective business writing has been a benefit to employees across the O’Connell Companies.

Jennifer Law recalls that, when she scheduled a course in effective writing for employees at the O’Connell Companies, there was some skepticism and a few moans and groans.

“I think many of them went into this thinking, ‘this is going to suck,’ or ‘I have to sit through this for a day,’” she said, adding that, as the course unfolded, and certainly when it was over, the responses were much different.

“They were all very thankful, and we got some great emails on how much they learned and how much they enjoyed the class,” said Law, controller for the company, adding that many of these emails were certainly better-written than those in the weeks, months, and years before this class, which was titled “Business Writing Excellence.”

And that was the point of the exercise.

Indeed, Law, who remembers emails and other correspondences being red-inked (literally) by a supervisor at a previous employer who spent years as a teacher, said she certainly became a better, more effective communicator because of those experiences.

“I learned so much from his doing that; it got ingrained in my brain,” she explained. “And when I read something from someone else that’s not right, that’s bouncing back and forth from tense to tense, isn’t cohesive, that doesn’t answer all the questions — that frustrates me.”

Enough for her schedule “Business Writing Excellence,” offered by the Employers Assoc. of the NorthEast (EANE), last summer. The class drew 20 employees from all levels of the company, including Matt Flink, president of Appleton Corp., one of the O’Connell Companies, as well as accountants, site managers, and others.

“When I read something from someone else that’s not right, that’s bouncing back and forth from tense to tense, isn’t cohesive, that doesn’t answer all the questions — that frustrates me.”

The common denominator was that each wanted to understand how to communicate better and more effectively, said Law, adding that this need crosses generations, but is perhaps more apparent with younger generations that have grown up texting and, quite often, taking shortcuts when trying to get their message across.

And in the business world, shortcuts can lead to poor communication, misinterpreted messages, lost time, lost productivity, and more, she noted.

That’s why EANE offers this course, said John Henderson, director of Learning and Development for the agency, as well as another titled “Emails: That’s Not What I Meant,” an aptly named, increasingly popular course on a subject of growing importance to companies of all sizes — helping employees craft better, more effective emails.

“That class gets into not just content, but also the tone of the email and understanding who your audience is,” Henderson explained. “We all know that emails are often misread or misinterpreted by the reader, so we have a specific course on email writing.

John Henderson

John Henderson says the biggest mistake most make with email is hitting the ‘send’ button too soon.

“With any kind of communication, whether it’s email, writing, a phone call, face-to-face,” he went on, “to be an effective communicator, it helps to know who your audience is and be able to create the message in a way that will effectively work with as many people as possible.”

For this, the latest installment in its series on professional development, BusinessWest takes an in-depth look at this specific need, but also at the broader issue of communication in the workplace and why employees at all levels need to find the ‘write’ stuff.

 

The Latest Word

Law said the O’Connell Companies invest a considerable amount of time and energy hiring the right individuals for positions at all levels of the organization.

But the investments don’t stop there, she said, adding that the company is focused on ongoing training and education aimed at giving employees the tools and the means to do their work — and serve its many different kinds of clients — effectively.

This training covers many areas, including communication and the EANE course in business writing, she said, adding that the class dealt not in the abstract, but rather with actual emails and other correspondences sent by participants, which were reviewed and critiqued, with an eye on grammar, but also on tone and simply getting the intended message across.

As noted earlier, problems with all of the above are common with employees of all ages, said Law, but especially the younger generations that grew up texting.

“These are people who always lived in that world of technology and texting and short, cut-off responses,” she said. “When you come into the business world, that doesn’t work anymore, and you see that this is how they’re communicating — very short, unclear, not thorough … and then the receiving person gets that message, and they’re confused, and it spirals into miscommunication.”

Elaborating, she said tone can be lost not only in texts, but also in emails, and improper tone can lead to a number of problems.

“These are people who always lived in that world of technology and texting and short, cut-off responses. When you come into the business world, that doesn’t work anymore.”

Henderson agreed, which is why EANE offers both the “Business Writing Excellence” class, one that more than 20 area companies have presented to employees, and “Emails: That’s Not What I Meant.”

The latter was created prior to COVID, but it became more timely, and even more important, during the pandemic, when face-to-face meetings became all but impossible and email became the chosen way to communicate — and often do business.

Henderson told BusinessWest that people make many mistakes with email, but perhaps the biggest is hitting the ‘send’ button too soon. By that, he was referencing everything from checks on grammar to a review of content to making sure the email is going only to its intended recipients.

“People rely on email as a rapid response, and they don’t put as much thought into writing an email as they would a letter,” he explained. “People hit the send button too soon rather than go back and reread what they’ve written.”

And when they do go back and reread, email senders should certainly focus on grammar — typos are embarrassing and do not convey professionalism — but they should also look hard to make sure the proper tone is set and that words and phrases cannot be misinterpreted by the recipient.

“If I’m writing an email, before I send it, I should think, ‘the person I’m sending this to, or the people I’m sending this to … how they are going to read this, and are there nuances in there that someone might take to a different interpretation?’” Henderson said. “Or they might look at it as me being rude because I didn’t start the email with ‘good morning.’”

Indeed, one of the bigger mistakes people make is simply not knowing the intended recipient for an email, he noted, adding that understanding the audience is critical to getting the message across and conveying the proper tone.

Elaborating, he said some recipients will like a reference to the weather or a question about how one’s day is going — ‘fluff,’ as he called it — while others are all business and don’t want or need pleasantries.

“Do they want something direct, or do they want something that’s more personable?” he asked rhetorically, adding that the sender should try to know the answer to that question. “We need to think about the recipient and how they want to receive that message; it’s an interesting dynamic when you’re trying to communicate through email.”

When in doubt — and there is a good deal of doubt with many in business who sends dozens of emails a day, often to people they don’t know well — it’s best to be pleasant and throw in a little of that fluff, he told BusinessWest, because not doing so might set the wrong tone.

 

Getting It Write

Flashing back to the class last summer and a group review of writing samples sent by company employees, Law said it was a tremendous learning experience.

“Everyone was able to reflect back, get those ‘a-ha’ moments, and say, ‘oh, yes, if I only had I said it this way, maybe I would have gotten my point across better.’”

Getting the point across clearly and concisely is one of the more important, if still underappreciated, aspects of doing business, she added.

And it should be an critical component of any employee’s overall professional development.

 

How Companies and Their Vendors Should Approach the Use of AI

By Contributor
Features

It’s Not Going Away

By Linn Foster Freedman

Consumers have embraced the use of artificial intelligence (AI) tools in their everyday lives since ChatGPT was introduced into the economy last year. Employees are using AI technology in their workplaces, which causes risks to companies. In addition, third-party vendors are embedding AI technology into their products and services, often without companies’ knowledge, and are using company data to teach AI tools.

This article provides practical tips to evaluate the use of AI tools within an organization and by third-party vendors, how to minimize that risk, and how to approach the use of AI tools as technology advances.

Although AI technology has been in existence for decades, it has become mainstream over the past year with the arrival and novelty of ChatGPT’s use by consumers. When consumers embrace technology before companies, it is only a matter of time before consumers start to migrate that use into the workplace, whether it is approved or not.

Companies are struggling with how to introduce AI tools into their environment, as the risks associated with AI tools have been well-documented. These include copyright infringement, use and disclosure of personal information and company confidential data, bias and discrimination, hallucinations and misinformation, security risks, and legal and regulatory compliance risks.

These risks are real and compelling, especially when employees are sharing company data with AI tools. Once employees upload company data to an AI tool, that data may be used by the AI tool developer to teach its AI model, and the company’s confidential data may now be publicly available. Further, many companies are embedding AI into their products or services, and if you are disclosing confidential company data to vendors, they may be using your data to teach their AI tools or feeding your confidential data to other third-party AI tools.

Linn Foster Freedman

Linn Foster Freedman

“Companies are struggling with how to introduce AI tools into their environment, as the risks associated with AI tools have been well-documented.”

The risk is daunting, but manageable with strategy and planning. Here are some tips on how to wrap your arms around your employees’ use of AI tools in your organization. Tips to manage the risk of vendors using AI tools will be addressed later on.

 

Tips for Evaluating Your Organization’s Use of AI Tools

1. Don’t put your head in the sand. AI is here to stay, and your employees are already using it. They don’t understand the risk, but it seems cool, so they are and will continue using it. They will use any tool that will make their jobs easier — that’s human nature. Embrace this fact and commit to addressing the risk sooner rather than later. Ignoring the issue will only make it worse.

2. Don’t prohibit the use of AI tools in your organization. AI tools can be used to increase efficiencies in the workplace and increase business output and profits. Prohibiting its use will put you behind your competition and be a failed strategy. Your employees will use AI tools to make their work lives more efficient, so getting ahead of the risk and communicating with your employees is essential to evaluate and develop the use of AI in your organization.

3. Find out who the entrepreneurs and AI users are in your organization. Encourage the entrepreneurs in your organization to bring use cases to your attention and evaluate whether they are safe and appropriate. There are many uses of AI tools that do not present risks. The use cases should be evaluated, and proper governance and guardrails should be implemented to minimize risks.

4. Develop and implement an AI governance program. While AI tools are developing rapidly, it is essential to have a central program that will govern its use, internally and externally. Gather an AI governance team from different areas in the organization that will be responsible for keeping a tab on where and when AI is used; a process for evaluating uses, tools, and risks; putting guardrails and contractual measures in place to reduce the risk; and processes to minimize the risk of bias, discrimination, regulatory compliance, and confidentiality. The team will start slow, but once processes are in place, they will mature and pivot as technology develops.

5. Communicate with your employees often about the risks of using AI tools, the company’s AI governance program, and the guardrails you have put in place. Companies are better now than ever at communicating with employees about security risks, particularly email phishing schemes. Use the same techniques to educate your employees about the risks of using AI tools. They are using ChatGPT because they saw it on the news or one of their friends told them about it. Use your corporate communications to continually educate your employees using AI tools in the company and why it is important that they follow the governance program you have put in place. Many employees have no idea how AI tools work or that they could inadvertently disclose confidential company information when they use them. Help them understand the risks, make them part of the team, and guide them on how to use AI tools to improve their efficiency.

6. Keep the governance program flexible and nimble. No one likes another committee meeting or extra work to implement another process. Nonetheless, this one is important, so don’t let it get too bogged down or mired in bureaucracy. Start by mapping the uses of AI in the organization, evaluating those uses, and learning from that evaluation to become more efficient in the evaluation process going forward. Put processes in place that can be replicated and eventually automated. The hardest and most important work will be setting up the program, but it will get more efficient as you learn from each evaluation. The governance program is like a mini-AI tool in and of itself.

7. Be forward-thinking. Technology develops rapidly, and business organizations can hardly keep up. This is an area on which to stay focused and forward-thinking. Start by having someone responsible for staying abreast of articles, research, laws, and regulations that will be important in developing the governance program. Right now, a great place to start is with the White House’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. It gives a forward-thinking view of the development of regulations and compliance around AI that can be used as a prediction of what’s to come for your governance program.

8. Evaluate the risk of the use of AI tools by vendors. The AI governance team should be intimately involved with evaluating vendors’ use of AI tools, which is discussed in more detail below.

 

Tips for Evaluating the Risk of Use of AI Tools by Vendors

1. Carefully map which vendors are using AI tools. It might not be readily apparent which of your vendors use AI tools in their products or services. Team up with your business units to question which vendors are or may be using AI tools to process company data. Then, evaluate what data is disclosed and used by those vendors and determine whether any guardrails need to be put in place with the vendor.

2. Implement a process with business units to question vendors upfront about using AI tools. Business units are closest to the relationship with vendors, providing services to the business unit. Provide questions for the business units to ask when pursuing a business relationship with a vendor so you can evaluate the risk of using AI tools at the start. The AI governance team can then evaluate the use before contract negotiations begin.

3. Insert contractual language around the disclosure and use of company data and using AI tools. Companies may wish to consider developing an information security addendum (ISA) for any vendor with access to the company’s confidential data if they do not have one in place already. As the AI governance team evaluates the disclosure and use of company data to new vendors and the use of AI tools when processing company data, vendors should be questioned on the tools used, security measures used to protect company data (including from unauthorized use or disclosure of AI tools), and contractual provisions on the use of AI. Contractual language should be clear and concise about the vendor’s obligations and the remedies for a breach of the obligations, including indemnification. This language can be inserted in the ISA or the main contract.

4. Evaluate and map existing vendors’ use of AI tools. There may be some vendors you have already contracted with that are using AI tools to process confidential company information of which you are not aware. Prioritize which vendors have the highest risk of processing confidential company data with AI tools and review the existing contract. If applicable, request an amendment with the vendor to put appropriate contractual language in place addressing the processing of company confidential information with AI tools.

5. Add the evaluation of AI tools to your existing vendor-management program. If you have an existing vendor-management program in place, add the use of AI tools into the program going forward. If you don’t have an existing vendor-management program in place, it’s time to develop one.

 

Conclusion

Now is the time to implement a strategy and plan around the use of AI tools within your organization and externally by your vendors. It seems daunting, but the risk is clear and will be present until you address it. Hopefully, the tips in this article will help you start taking control of AI use in your organization and by your vendors and minimize the risk, so you can use AI to make your business more efficient and profitable.

 

Linn F. Freedman is a partner and chair of the Data Privacy + Cybersecurity Team at Robinson+Cole.

Baystate Providers Offer Healthy Tips for 2024

By Contributor
Health Care Healthcare News

Off on the Right Foot

 

Did you include better health in your New Year’s resolutions?

Health experts at Baystate Health suggest setting realistic goals and prioritizing what is most important to you, taking small steps, and remembering not to beat yourself up if you encounter a setback in your health goals for 2024. Here are three goals to consider as you continue on your journey:

 

Improve Your Blood Sugars

From Dr. Cecilia Lozier, chief of the Division of Endocrinology and Diabetes, Baystate Health:

There are three important approaches to improve your blood-sugar numbers as we start the new year. First, moderate your carbohydrate intake. No dramatic approach is needed. If before you would take two scoops of potatoes, now consistently take one and fill the empty space with non-starchy vegetables.

Dr. Cecilia Lozier

Dr. Cecilia Lozier

“Moderate your carbohydrate intake. No dramatic approach is needed. If before you would take two scoops of potatoes, now consistently take one and fill the empty space with non-starchy vegetables.”

Second, increase your physical activity. Using your muscles will push sugar into your cells and out of your bloodstream. The more you move and are physically active, the better your numbers will look. Third, modest weight loss. Losing between 5% and 10% of your body weight will have a dramatic impact on how you metabolize sugar. Speak with your healthcare provider to personalize this approach for you.

 

Address Sleep Problems

From Dr. Karin Johnson, medical director, Baystate Health Regional Sleep Program and Baystate Medical Center Sleep Laboratory, Baystate Health:

Stress levels are higher today in the world we live in. While stress can make sleeping well more challenging, it is important to prioritize sleep, which is necessary for health and well-being. Most adults function best with seven to eight hours of sleep, and teenagers need around nine hours.

Good-quality sleep is important for preventing infections and keeping your immune system working well. Studies have shown that sleep-deprived people don’t mount the same immune response after vaccinations as good sleepers, so it is important to make sure you get a good night’s sleep prior to getting a flu or COVID vaccine, for example.

Keeping a regular sleep schedule will allow your body’s internal clock to help you get the best night’s sleep. If you are having difficulty sleeping or show signs of poor-quality sleep with loud snoring, difficulty staying asleep, urinating frequently at night, or daytime sleepiness or tiredness, you may benefit from a sleep-medicine evaluation.

 

Control Your Weight

From Eliana Terry, registered dietitian, Baystate Noble Hospital:

Is your New Year’s resolution to eat healthier, exercise more, or achieve another health-related goal? The new year brings with it the opportunity to start on a path toward wellness or, if you’ve already done so, to maintain healthy habits. However, it can be difficult to make these goals stick with all the challenges the year throws our way. What is the best way to be successful in achieving your health resolutions? Consider the following.

• Be specific with your goals. Instead of ‘I will eat healthier,’ consider something like ‘I will replace four sodas per week with water.’ Setting a more specific goal can help you actually check whether you have completed the goal each day and, thus, be successful long-term.

• Make sure your goals are measurable. If your goal is weight loss, for example, set a measurable amount with a time frame to reach your goal by. For example, ‘I want to lose 10 pounds by April 2024’ and ‘exercise for 30 minutes, three times per week’ are more measurable goals than ‘lose weight this year.’

• Make your goals realistic for you. For example, if you travel daily for work, ‘no longer eat on the go’ as a resolution may be unrealistic for your lifestyle. You may find yourself giving up by February if you have purchased any meals out. This hinders any progress you could have made in a longer period. Instead, try a more realistic and flexible goal such as ‘pack a healthy lunch to keep in a cooler four times per week.’

Set yourself up for success this year with specific, measurable, realistic resolutions. Otherwise, you may find yourself quickly frustrated by your inability to stick to and achieve your goals.

Fallon Health Names Manny Lopes Next President and CEO

By
Insurance

Change at the Top

Manny Lopes

Manny Lopes

Fallon Health, a not-for-profit healthcare services organization with a focus on improving access, quality, and affordability in government markets, announced that its board of directors has appointed Manny Lopes as its next president and CEO, effective July 1, 2024. The selection of Lopes follows a comprehensive national search that began after the organization announced the planned retirement of President and CEO Richard Burke.

The board also appointed Chief Financial Officer Todd Bailey to serve as interim CEO from Burke’s retirement on Jan. 31 through June 30.

“I am honored and grateful to the Fallon Health board of directors for the opportunity to be the next president and CEO of this exceptional organization,” Lopes said. “I look forward to leading the organization and its dedicated, passionate, and caring employees in pursuit of its vision to be the leader in providing exceptional, coordinated care and coverage that meets the unique, diverse, and changing needs of its members.”

A seasoned executive with experience across the healthcare industry, Lopes is currently the interim CEO of Fenway Health, one of the first healthcare organizations in the country to specifically address the healthcare needs of the LGBTQ+ community. Prior to that, he was executive vice president of Public Markets and Government Relations for Blue Cross Blue Shield of Massachusetts (BCBSMA), with responsibilities for the company’s Medicare division, achieving growth through innovation while also improving consumer experience and health outcomes.

“I look forward to leading the organization and its dedicated, passionate, and caring employees in pursuit of its vision to be the leader in providing exceptional, coordinated care and coverage that meets the unique, diverse, and changing needs of its members.”

Before joining BCBSMA, Lopes was president and CEO of East Boston Neighborhood Health Center, a large, nationally recognized primary-care provider and insurer that offers a Program of All-inclusive Care for the Elderly and a Senior Care Options plan, both core programs in Fallon Health’s portfolio.

“Manny’s extensive and highly relevant experience make him the ideal person to lead Fallon Health at this point in its history and in support of its strategy to predominantly focus on government markets,” said Frederick Misilo, Fallon Health board chair. “Throughout his career, he has developed a deep and empathetic understanding of the healthcare needs of the communities that Fallon Health serves today and in the future. Manny and Todd are committed to ensuring a seamless transition for Fallon Health’s employees, members, and provider, business, and community partners.”

Deborah Enos, Fallon Health board member and chair of the search committee, added that “the board’s search committee worked diligently to find the right person to lead Fallon Health and continue to move the organization forward in its strategy to be the leading healthcare-services organization committed to government-sponsored health-insurance programs. Manny has a deep understanding of and commitment to all that Fallon Health stands for: its mission, vision, values, and its strong support of the community. His proven track record and passion for innovation, equity, and improving health outcomes is unparalleled.”

Misilo added that Bailey’s leadership has put Fallon Health in a strong financial position and played a key role in the organization’s strategic decision to focus predominantly on government programs, and that his 30-plus years of experience in the health-insurance and healthcare fields, and his unique vantage point in the business, have helped drive strategic and critical decisions in support of members’ care, the workforce, and the community.

Following a 25-year career at Fallon Health, including the last eight as president and CEO, Burke will retire at the end of the month.

“Under Richard’s distinguished leadership, Fallon Health has successfully pivoted to a predominant focus on government programs, experiencing unprecedented growth in several products and historically strong financial results, and receiving continued exemplary national ratings for quality and service,” Misilo said. “The board congratulates him on his retirement, thanks him for all he has done to expand the impact of Fallon Health’s mission, and wishes Richard well as he embarks on this next journey.”

 

 

Inside the Campaign to Reopen the Iron Horse This Spring

By Contributor
Chris Freeman
Cover Story Creative Economy

Music Will Live Again

By Emily Thurlow

Chris Freeman

Chris Freeman, executive director of the Parlor Room Collective
Photo by Emily Thurlow

There’s a lot to love about the Iron Horse Music Hall.

Though it’s not as apparent from the outside, with its large storefront windows covered in layers of tape holding up posters advertising myriad performers and upcoming shows, the downtown space holds countless special memories for lovers of live music in Western Mass., as reflected in its venerable slogan, “music alone shall live.”

Over the course of its more than four decades in existence, thousands of musical acts have graced the stage at the historic Northampton venue — one of a handful of hotspots, in fact, that helped define the city as an entertainment destination.

Whether leaning on the balcony railing or sitting at a table, or swaying from side to side at the edge of the stage, audiences of multiple generations have been entertained time and time again by artists like jazz musicians Freddie Hubbard and Bobby McFerrin, singer-songwriters from Brandi Carlile to Robyn Hitchcock, rockers like Graham Parker and the Smashing Pumpkins, and contemporary folk icons like Dar Williams and Dan Bern.

And while concertgoers and performers alike cherished the intimate atmosphere within the historic walls, it’s no secret that the Iron Horse also carries a less-pleasant legacy with regard to uncomfortable room temperatures, underwhelming bathrooms, and a poorly maintained green room — not to mention labor complaints and an extended closure that marred the last few years of the venue’s previous ownership by Eric Suher.

The the new owner, however — a nonprofit called the Parlor Room Collective that operates other small, local performance spaces — has plans to make those less-appealing accounts a thing of the past and reopen the Iron Horse this May.

“This is a living place. You can have people seated around the outside on the balcony or standing, and you could have college kids moshing and dancing in the pit while you have all of their parents eating a nice meal around the outside. Everyone feels safe.”

Nearly halfway to the $750,000 goal of a capital campaign launched in November, the Valley-based nonprofit continues to call on the public to invest in the Iron Horse Music Hall. The Parlor Room Collective will use that investment to expand and renovate the facility’s footprint to enhance the overall experience for patrons and improve the space for artists, which will, in turn, bring people together through music as it did not so long ago, said Chris Freeman, executive director of the Parlor Room Collective.

“Our mission at the Parlor Room Collective is to enhance the health and vitality of our community through the power of music. We have witnessed the magic of our local music scene and its ability to fuel the engine of our economy, enhance the overall well-being of our community, and contribute to our cultural vitality,” Freeman said. “And now we stand at a pivotal moment in our journey as a nonprofit arts organization. We have a unique opportunity to revive a local treasure that has resonated with music lovers for generations: the Iron Horse.”

 

The Good, the Bad, and the Disgusting

Many who have entered the music industry at a grassroots level have performed at one point or another at the Iron Horse, Freeman said.

Take singer-songwriter Tracy Chapman, for example. Prior to taking home numerous Grammy awards for her eponymous 1988 debut, Chapman played at the Northampton venue, long before it was the multi-level experience it is today, Freeman noted.

“From John Mayer and Wynton Marsalis to Allen Ginsberg and Beck … the amount of performers that have played here goes on forever, and in every genre,” he said.

Before earning that reputation, the 20 Center St. mainstay was known as the Iron Horse Coffeehouse. At the time of its opening in 1979, the club’s capacity was limited to 60 people. Co-founded by Jordi Herold and John Riley, the venue was named for a work of sculpture that Herold’s mother had created.

About a decade — and a few expansions — later, the club could accommodate 170 seats and had became known as the Iron Horse Music Hall. Suher, a notable Northampton developer, purchased the venue in 1995 and owned it until its sale to the Parlor Room Collective in 2023.

Though he’s spent considerable time in the space, Freeman still marvels at how the unique venue lends itself to an eclectic, multi-generational experience. “This is a living place. You can have people seated around the outside on the balcony or standing, and you could have college kids moshing and dancing in the pit while you have all of their parents eating a nice meal around the outside. Everyone feels safe.”

At the same time, the venue has presented some unpleasantness for its guests. In recent years, some artists have publicly addressed such issues. Freeman recalled attending a show for Vanessa Carlton, who talked about how cold she was during her 2017 performance at the venue.

Carlton, best known for her 2002 hit single, “A Thousand Miles,” publicly thanked an audience member who loaned her fingerless gloves via a post on Twitter, stating, “it was freezing on stage” and Suher’s Iron Horse Entertainment Group “wouldn’t turn the heat up.”

In response, Suher denied Carlton’s assertions and told the Daily Hampshire Gazette at the time that “the performer was cold on the stage. The venue temp was 70 degrees.”

Carlton further spoke of the disarray in the green room, which was also located in the basement. On Twitter, she posted a photo of furniture with ripped and torn fabric and cushions collapsing and urged owners to toss it, so that she would return to the venue again in the future.

Though the space allowed fans to get close to artists, the space wasn’t especially welcoming, Freeman noted, adding the green room was known in the area for its poor condition, and the basement was the only place on site equipped with bathrooms. “These two disgusting bathrooms are supposed to serve 250 people — including the artists. They’re so, so gross.”

“Understanding its history, I kept thinking about how it’s just such an important place for our whole community, and I thought that somebody has to reopen this place.”

As for the HVAC unit, Freeman said the Iron Horse is in need of a serious upgrade. He explained the challenges of trying to keep a packed house well-regulated, whether the meant warm enough or cool enough. “There are tons of famous artist complaints of playing in here with it being 90 degrees — and 20 degrees outside.”

 

Music and Memories

Freeman’s knowledge of the Iron Horse goes well beyond his time as a board member for the Parlor Room. Growing up in Farmington, Conn., he would often attend shows at the Iron Horse with his father. The Valley’s music scene was especially attractive to him and made him want to move to the area, he said.

“Northampton was kind of like a grungy, artsy, cool place where people knew about artists. People had an understanding of bands that ran a little bit deeper than whoever’s on the big country radio station or the big pop stuff,” he said. “I remember the first time I came here. I knew I wanted to be a musician, and I thought that if I could just open a show at the Iron Horse, I’ll have made it.”

By his 10th or 11th visit to the Iron Horse, Freeman did just that and performed with the Americana/folk-rock group he helped found, Parsonsfield.

His band, which was signed to the Signature Sounds record label, was among the first artists to perform at the Parlor Room, located at 32 Masonic St. — just a block away from the Iron Horse. The Parlor Room was founded by Signature Sounds Recordings in the fall of 2012 as an “artist-and-audience-friendly” listening room, performance space, and school of music, he explained.

Chris Freeman

Chris Freeman sits on the Iron Horse’s prominent stairs to the second level, where the new restrooms will be located.

Freeman spent roughly a decade touring with Parsonsfield at venues throughout the U.S. In February 2022, he transitioned into the role of executive director of the Parlor Room and played a critical role in helping the organization transition into a nonprofit music venue and school last January.

On a near-daily basis, Freeman, who is now a resident of Northampton, would find himself walking by the Iron Horse, seeing the legendary venue remain dark.

“Understanding its history, I kept thinking about how it’s just such an important place for our whole community, and I thought that somebody has to reopen this place,” he told BusinessWest. “This was a place that is the heart of the whole Western Mass. music scene. The culture and the city around it made me want to move here.”

Freeman’s understanding of the value of the property led him to reach out to Suher. This past September, the Parlor Room announced it had reached an agreement with Suher to purchase the business, which includes the venue’s liquor license.

The Parlor Room signed a 15-year lease to not only operate the business at its current space at 18 and 20 Center St., but also to expand into 22 Center St. Connecting the adjacent storefronts will allow the Iron Horse to have a dedicated bar and community space and will increase the venue’s overall square footage by 40%, he explained.

Once renovations are completed and the Iron Horse has reopened, the Parlor Room will be, as its name suggests, a collective that encompasses three projects: the Iron Horse, the Parlor Room, and the Parlor Room School of Music. The original Parlor Room venue on Masonic Street will live on as the headquarters for the School of Music and an intimate performance venue.

“My main goal is, I wanted this place to come back, and I wanted to live in a city that has music — that’s why I moved here in the first place. My secondary goal is to make the Parlor Room become just as big of a part of this community,” Freeman said. “The ability to merge these together and to make sure that this place comes back — in the right way and with the right mission and in line with the community’s goals — felt like a really important thing to do.”

 

What’s the Plan?

With the aim of reopening this spring, the Parlor Room has set an ambitious renovation timeline that’s already underway, while the capital campaign continues. To date, the campaign has surpassed $317,500.

Among the biggest costs will be an upgraded sprinkler system and HVAC unit, Freeman said. The first phase of renovations also encompass updates to flooring, a new sound and lighting system, and stage and bar enhancement funded in part by a $73,000 American Rescue Plan Act grant from the city of Northampton.

The nonprofit has also partnered with Dave Schrier, co-owner of Easthampton’s Daily Operation, to redesign the dining and bar experience at the Iron Horse.

Phase two of the renovations will focus on accessibility and other upgrades. Instead of the two basement bathrooms, the new space will include 10 bathrooms that will be relocated for increased accessibility. This also includes two bathrooms accessible for those who use wheelchairs, in compliance with the federal Americans with Disabilities Act. A wheelchair lift will also be installed to make the stage accessible for all.

The Parlor Room Collective will also establish a brand-new green room that includes private bathrooms with a shower. A new floor layout will allow for 300 people for standing-room-only events and variations of more than 200 people seated in new furniture.

“There is no better investment in our community — and what, historically, has seen Northampton as a community thrive, business-wise — than bringing back the Iron Horse and having this place open 250 nights a year with a bar, with the way that it impacts other restaurants and tourism in the area,” Freeman said.

To donate to the “Revive the Iron Horse” capital campaign, visit ironhorse.org.

Mick Corduff Takes the Reins at Log Cabin, Delaney House

By
Mick Corduff
Features Special Coverage

A New Era Dawns

Mick Corduff

Mick Corduff

 

Mick Corduff calls it his “research and development time.”

It comes early in the year, when things are slower in the hospitality sector. It’s a time to reflect, drill down on what happened the year before, and ramp up the planning for the year ahead.

“I look back and measure all that was good and all that wasn’t good,” he said. “Menus that worked and didn’t work, staffing and structures that worked, management positions that worked and didn’t work; we always try hard to raise the bar.”

This year, research and development time is more than a little bit different … because last year, there were a few distractions, as he put it.

Indeed, 2023 saw a long partnership — more than two decades — between Corduff and Peter Rosskothen come to an end when Rosskothen sold his shares in the company that owns the Log Cabin Banquet & Meeting House, the Delaney House restaurant and D. Hotel Suites & Spa to Corduff and his new business partner, Frank DeMarinis.

The end to the business relationship, which had been talked about for several years and then finalized over the course of 2023, came in late September, ushering a new era for a group of businesses that comprise one of the pillars of the region’s hospitality sector, and for which Rosskothen had long been the face.

“The past four months have definitely been very hectic, but I like to think that I’ve handled pressure well over the years. It’s something that a chef has to do.”

Corduff now becomes the new face, moving from what was mostly, but not entirely, back-of-the-house operations to back and front of the house, although he’s taking steps to delegate some of his many responsibilities to other managers.

For now, and for the foreseeable future, he has a lot on his plate — literally and figuratively. There are the day-to-day operations and coping with challenges ranging from the still-rising cost of food to an ongoing workforce crisis to meeting the many needs of today’s marrying couples. He’s also overseeing the return of Sunday brunch at the Delaney House, planning for the upcoming St. Patrick’s Day parade events and a ‘sister-city’ trip to Ireland later this year, and advancing some ambitious plans for the future. While doing all that, he’ll spend some time in the kitchen cooking as well.

In a candid conversation with BusinessWest about all of the above, and especially the many responsibilities he now handles, Corduff said he brings to his new and expanded role what he calls a chef’s mentality.

Sunday brunch at the Delaney House

The return of Sunday brunch at the Delaney House has been just one item on the plate for the new ownership team.

“The past four months have definitely been very hectic, but I like to think that I’ve handled pressure well over the years,” he noted. “It’s something that a chef has to do. What I’ve learned in my years of experience in the back of the house — and in the front of the house as well, especially over the past four or five years — is the importance of keeping a level head and just knowing that, at the end of the day, we’re dealing with people, whether it’s waitstaff or a contact for the bride and groom; they’re people, and you want to treat them with respect.

“I learned a lot from Peter over the years — we always worked in tandem,” he went on. “We always talked about the best way to handle things and put our best foot forward and maintain the integrity of the business. We always had the same message — excellence is what we’re all about, and we try to promote that across the board.”

As for those plans for the future, they are, indeed, ambitious, and include a possible new hotel and restaurant to be built on a portion of the upper parking lot at the Log Cabin.

“We’re dreamers — that’s what entrepreneurs are,” Corduff said. “And we have some dreams that we want to make reality.”

 

Food for Thought

As he talked with BusinessWest at 10 a.m. on a recent Tuesday morning, Corduff had his chef’s coat on, one announcing him as ‘chef owner.’

He wasn’t doing any cooking at that moment, nor was he planning to do any soon, but the chef’s coat was still the attire of choice. To paraphrase Bill Belichick, it is who he is.

“I don’t think I’ll ever the leave the kitchen — I love what I do,” he said, adding that he has a few business suits … somewhere. He had more years ago, when he served as front-of-house manager at the Log Cabin and wore one every day. But he ruined some of them of them when wandering back to the kitchen, where he feels most at home, and getting food stains on them.

“We’re known in the community as a quality product, and we aim hard to maintain that standard.”

Ever since, the chef’s coat has been the uniform, if you will, and Corduff wears it everywhere and for everything, from planning for the Big E (the group has a huge presence there) to meeting with the media, an assignment that mostly fell to Rosskothen years ago, although Corduff did it, too; from reviewing accounts payable to doing long-range planning.

These are now mostly, if not entrely, Corduff’s purview, and it’s a change, that, as noted, has been years in the making.

That’s how long the two partners talked about Rosskothen moving on and focusing his time and energies on one of their latest entrepreneurial ventures — Delaney’s Market, which now has four locations across the region — with Corduff taking the lead at three Holyoke establishments: the Log Cabin as well as the Delaney House restaurant and the adjoining D. Hotel Suites & Spa.

The main ballroom at the Log Cabin

The main ballroom at the Log Cabin, one of several properties in the group now owned and managed by Mick Corduff and Frank DeMarinis.

He’s doing so with new partner DeMarinis, president of Sage Engineering and Contracting Inc. in Westfield and a local developer, builder, owner, and manager of more than 25 commercial real-estate properties in Massachusetts and Connecticut. He is also the founder and owner of Roots Sports complexes in Westfield and East Longmeadow, as well as Roots Learning Center in East Longmeadow.

For Corduff, this is the intriguing next chapter in a story that began when he came to this country from Ireland in 1989, working first as a banquet chef at the Marriott in Springfield and later as a member of its quality-management team.

Eventually, he started doing some catering on his own and began looking at getting into business for himelf. While pursuing those dreams, he also interviewed to be head chef at Twin Hills Country Club. The interview was with Larry Perrault, who was at that time finalizing plans to join Rosskothen in a venture to reimagine the old Log Cabin restaurant property, in the shadow of Mount Tom, into a banquet facility.

They went to lunch at Friendly’s, where the discussion wasn’t about Twin Hills, but about the Log Cabin.

“I met Larry, I met Peter, we walked around the old Log Cabin, whipped out the drawings, and started our dream,” he said. “The rest is history.”

More than a quarter-century of colorful history, in fact, involving change, evolution, expansion (the Delaney House, then the the hotel, then Delaney’s Market), innovation, and overcoming challenges that ranged from the Great Recession to the pandemic. Over the course of that time, Corduff moved from chef to partner when the relationship with Perrault dissolved — a partnership that lasted 20 years.

The buyout came in late September, one of the busiest times for this group of businesses, leaving Corduff “without much time to stop and think,” he said — something he’s able to do now. Early on, he’s spent considerable time and energy reassuring the large staff that the business is stable and ready to maintain its standing as a market leader.

“A lot of what I do now, mapping out the year and planning out the seasons that are coming, is making sure that we have the right people in the right places, making sure everyone’s ready to do whatever it takes and trained in the art of war and the art of optimization.”

Moving forward, in the role of chief operator and executive chef, he will work in partnership with DeMarinis, who will focus on the construction and infrastructure sides of the equation, while Corduff will be handling day-to-day operations.

While doing so, his primary mission is to maintain the group’s reputation for quality — at all levels of its operation, from weddings, which are perhaps its hallmark, to a Friday-night dinner at the Delaney House, to a weekend stay at the hotel, now managed by Corduff’s wife, Dana.

“We’re known in the community as a quality product, and we aim hard to maintain that standard,” he said. “We have to adapt because the business is constantly changing and evolving.”

 

More Growth on the Menu

Looking back on the past 25 years or so, Corduff said that, for much of that time, he was back-of-the-house and more behind the scenes than the colorful, always-quotable Rosskothen. But later on, he started becoming more visible, and people could put a face with a name.

Or a voice with a name.

Indeed, Corduff was prominent in radio spots for the Log Cabin and Delaney House, specifically their steaks, made famous by the word ‘marbling,’ which Corduff would pronounce slowly for added effect. Later, he became more known through the opening of the Mick, a tavern of sorts within the Delaney House providing casual dining and live music.

With the change in ownership consumated last fall, he now assumes more responsibilities, especially in the big-picture planning for the future.

“My managers know that I will run into the hottest fire,” he told BusinessWest. “So whoever needs me, I’m there. And a lot of what I do now, mapping out the year and planning out the seasons that are coming, is making sure that we have the right people in the right places, making sure everyone’s ready to do whatever it takes and trained in the art of war and the art of optimization.

“In the catering world, you can be doing a wedding in a tent under a tree out in the woods, no power, no water, so we have to plan it all out,” he went on, using that example as metaphor for business in general and the need to be ready for anything.

And, as noted earlier, the two partners are entrepreneurial, intent on expanding this business group and making more changes.

One ongoing project is to essentially separate the front (lower) parking lot at the Log Cabin from the rest of the property, with the intention of it becoming home to a Dunkin’ Donuts and the fifth Delaney’s Market, an operation that will be Rosskothen’s domain as part of the buyout agreement.

The larger and more ambitious plan, however, calls for redevelopent of the upper parking lot.

“The vision is to build a hotel in the upper lot,” Corduff said, adding that DeMarinis, the engineer, is developing plans to move dirt and create more space to park cars in that area while also identifying a footprint for a hotel and acompanying restaurant. The hotel would be a smaller, boutique facility, similar to the D. Hotel at the Delaney House, with maybe 60 to 80 rooms.

“We really want to bring to it some of the Log Cabin character, some of the New England character, with some of our own touches,” he said, adding that a rooftop restaurant, one with dramatic views down the mountain, is also within the plan, one that will likely take shape over the next three to four years.

As he talked with BusinessWest, Corduff recalled what he called a “sendoff” for Rosskothen the night before at the the Mick. It was an occasion to mark the end of an era, the end of a business relationship, and the start of the next chapter.

“It was a kind of a thank you and sendoff, and it was cool to see,” he said. “We had some staff that don’t work here anymore that came to say ‘hi’ and ‘bye.’ There was a lot of gratitude in the room last night; there’s been a lot of years of hard work together.”

And many more to come, Corduff added, noting that, with the passage of one era, another has begun. And as it does, he will certainly fall back on that chef’s mentality (not to mention the chef’s coat) he mentioned earlier.

And that means keeping a level head and always treating people with respect.

 

Local Fitness-center Owners Aim to Keep Members Motivated

By Contributor
Steve Conca
Healthcare News Special Coverage

One Workout at a Time

By Emily Thurlow

Steve Conca

Steve Conca, owner of Conca Sport and Fitness

Between platefuls of coma-inducing turkey, complete with all the fixings, and palatable pies and pastries, it’s safe to say that many people are happy to see the hearty overindulgences of the 2023 holiday season firmly in the rear-view mirror.

For many, the start of the new year provides an opportunity to start out on the right foot, by developing better habits and establishing goals. Through myriad resolutions, one theme that tends to stand out year after year is health.

Notably, an October 2023 survey from Forbes Health/OnePoll revealed that 48% of U.S. adults say improving fitness is a top priority for them in 2024. Google Trends also released data showing that some of the top health-related searches in January include meal preparation, healthy meal ideas, and gym memberships.

And while some say they resolve to lose weight or improve their health in January, it often takes another month before they will deliver, said Danny Deane, who owns two local F45 Training franchises with his wife, Jessye.

“February is the number-one month in the fitness industry, with September being second,” he said. “In January, everybody starts to think about it, and then, by the time February rolls around, they’re really making good on their promise.”

Whether it’s during the winter doldrums or as the leaves begin to turn in the fall, local fitness studios and gyms continue to see positive gains in this post-pandemic climate — in both their business and their clients.

“I think people are realizing that putting an investment into themselves pays big dividends.”

“I think people are realizing that putting an investment into themselves pays big dividends,” said Steve Conca, owner of Conca Sport and Fitness in West Springfield.

During the pandemic, gyms and fitness centers were severely challenged by shutdowns and limitations on the amount of people in a space at any given time. For some, the impact was minimal. For others, it’s been rather extreme.

F45 Training

One key to success at gyms like F45 Training is accountability with a workout partner.

In fact, 25% of fitness studios and gyms have closed permanently since the onset of COVID-19, according the National Health & Fitness Alliance, an industry group.

However, Jon Davis, owner and performance director of Powerhouse Training in East Longmeadow, said business is “as good as it ever has been.”

Powerhouse Training, which Davis founded in 2010, offers sports-specific lessons for baseball and softball athletes as well as general performance training in speed, agility, strength, and mobility. The majority of his clientele includes athletes between age 8 and pro-rank levels.

Because Powerhouse Training provides more of a specialized kind of exercise regimen, Davis said he didn’t see the decline in attendance that many commercial gyms did. He said he’s also found that parents are valuing their children’s access to being physically active.

“I think a lot of parents realize the importance of having their kids get outside and socialize and stay active, for not only their physical health, but also their mental health,” he told BusinessWest. “Since we provide more of a specialized training, the kids really can’t train on their own, and they need assistance as well as special equipment, and they need a lot more space. So I think we were a necessity for them, which has certainly helped out.”

The group training, which involves youth athletes coming in two to three times a week, costs between $145 and $195 per month. Prices range between $50 and $90 for baseball lessons and $50 and $75 for fitness training.

 

Investing in Health

For the most part, Conca’s entire membership stuck with his gym. He expressed gratitude for the tight-knit community, or “family,” that is Conca Sport and Fitness, which first opened in 2009.

For months, all the personal training and small-group training was done outside. Unlike more recent weather patterns, the forecast remained relatively sunny, with little precipitation. And once the clouds of the pandemic restrictions cleared, he actually saw a slight resurgence.

“People are always going to want the newest, latest, and greatest thing — and, certainly, some of those innovations are really helpful — but honestly, I think learning good form and focusing on staying balanced, working mobility, and strength training will never get old.”

“I think it’s opened people’s eyes to realize, ‘I really wasn’t taking great care of myself,’ so it’s led them to want to invest in themselves,” he said. “Here, we call investing in yourself a health savings account. The more you can put in now, the more you can reap the benefits.”

In addition to personal training and group training, Conca Sport and Fitness also offers health nutrition and wellness coaching. Memberships range between $209 to $349 a month, with individual sessions ranging between $20 to $37.

“When people come here, they aren’t just going to bang out a few workouts, high-five, fist-bump, and ‘see ya later,’” he said. “It’s a whole process that includes teaching people how to take better care of themselves as they age.”

As for the Deanes, the couple, who opened their first gym, F45 Training Hampshire Meadows in Hadley in 2018, decided to open a second location in West Springfield in 2020.

“A lot of doors closed throughout the last couple years in the fitness world, but we are lucky enough to be on the other side of it and are actually above pre-COVID numbers at Hampshire Meadows,” Danny said. “We made it through.”

The 45 in F45 stands for 45 minutes of functional fitness, with sessions led by two personal trainers in a motivating team environment, said Jessye Deane, who is also executive director of the Franklin County Chamber of Commerce and Regional Tourism Council.

F45 Training does not employ heavy equipment or machinery

F45 Training does not employ heavy equipment or machinery, but it does include the use of kettlebells, free weights, and body-weight-based movements.

“The goal is really functional fitness. It’s scalable and adaptable, so it fits every fitness level,” she said. “A lot of times, what we hear is that folks go to the gym and want to get healthier, want to be able to move better, and want to be able to feel better, but they don’t quite know how to work the machines or they don’t know what they’re doing, and they get hurt, or they get frustrated. And this is kind of the answer to that. All you have to do is walk through the door, and we will take it from there.”

Every day, the gym features a different workout. F45 Training does not incorporate heavy equipment or machinery, but it does include the use of kettlebells, free weights, and body-weight-based movements.

The workouts for the Australian-based franchise combine elements of high-intensity interval training, circuit training, and functional training. The West Springfield location also currently offers a free seven-day trial, and the Hadley location is offering a seven days for $7 offer.

Trends come and go, but according to the area gym owners BusinessWest spoke with, having a healthier lifestyle comes down to the basics.

“People are always going to want the newest, latest, and greatest thing — and, certainly, some of those innovations are really helpful — but honestly, I think learning good form and focusing on staying balanced, working mobility, and strength training will never get old,” Davis said. “I think those tend to produce the best results.”

Conca agreed, noting that, as people age, he explained, they lose strength, muscle mass and function.

“Father time just begins chipping away,” Conca said. “That’s why maintaining muscle mass and strength levels — the fundamentals — is super important. I’d argue that it’s more important than so-called cardio, because you can get a good cardiovascular response with some very good strength training.”

According to the National Institutes of Health, muscle mass decreases approximately 3% to 8% per decade after age 30. After age 60, the rate of decline is even higher.

While F45 workouts have the adaptability to pull in emerging trends, Jessye Deane emphasized that trends are not the mainstay of the gym.

“We want you to feel great now, and we want you to feel great in 20 years — that’s our motivator,” she said. “The focus of our programming is to make sure that we’re providing people the safest, most effective functional fitness workout they can have.”

One way F45 workouts tap into recent trends is through supersets, she added. A superset includes performing a set of two different exercises back to back with little to no rest in between. One example of this would be doing a set of 10 push-ups, followed immediately by pull-ups.

 

Sticking with It

Finding motivation to stick with any new habit can be difficult, of course. It can potentially be even harder when the only opportunity to dedicate time to fitness is before the sun rises or well after it sinks below the horizon. That time crunch, combined with inclement winter weather, can make someone want to shed their new goal before they even begin.

One way Conca and the Deanes have seen clients stick with their fitness routines is by not doing it alone.

“Accountability is key. Having a group of people that you’re excited to see every day helps,” Jessye Deane said, adding that her husband is her workout partner. “Danny is my accountability partner. He wakes me up every morning whether I want to or not.”

At Powerhouse, Davis coaches each athlete differently based on their personality. Some kids may require more positive affirmation to help build their confidence, while others require him to be blunt and upfront and tell them directly what they’re doing incorrectly.

“It’s getting to know these athletes — getting to know what they like, what they don’t like, what motivates them, and then trying to find out what makes them tick and make sure that, when it’s time to push, we know what button to push,” he explained.

Throughout his tenure, Davis has produced more than 100 All-Western Mass. high-school all-stars, 13 All-Americans at the high-school and collegiate levels, and three Western Mass. Players of the Year in football, baseball, and girls lacrosse. He’s also helped produce 10 Major League Baseball draft picks out of the high-school ranks, including Isan Díaz and Seamus Curran.

At Conca’s gym, motivational phrases festoon the walls, including quotes from famous folks ranging from Wayne Gretzky to Amelia Earhart. The gym also features a so-called ‘strong wall’ that includes one-word motivational phrases that clients create to help drive their personal success. At the time of this interview, Conca was still tinkering with the specifics of the acronym LIFT, with the goal of lifting others up.

For those looking to dip their toe into the fitness and exercise pool, Jessye Deane said anytime is a good time to start.

“There is nothing more important than your health,” she told BusinessWest. “Whether you’re working out at an F45 or you’re doing yoga or you’re visiting any of the wonderful studios in the Valley, we really want people just to feel better and be healthier.”

 

Several Factors Are Accelerating Auto-insurance Rates

By
Insurance Special Coverage

Driving Up the Cost

 

 

Wondering why auto insurance is much more expensive now than it was a couple of years ago? You’re not alone.

There are a number of reasons why, but Joe Phillips starts with an unprecedented series of changes in driver behavior brought on by COVID-19.

“Companies started adopting safe-driver points and rebate offers, and when 2020 hit, everyone stopped driving, they stayed home, nobody was going to school, the roads were empty, and people got a lot of money back because accidents were way down,” said Phillips, president of Phillips Insurance Agency in Chicopee.

“That situation, with less activity, went on for more than two years: a reduction in driving, reduction in accidents, lower repair costs,” he went on. “But in late ’22, 2023, more people were back to work, everyone was back to school, distracted driving is on the rise, and claims have gone through the roof.”

John Dowd, president and CEO of the Dowd Agencies in Holyoke, said an increase in accidents after the pandemic caught insurance companies “flat-footed.”

“Insurance companies set their rates in advance for the year; they have to file with the state. So by the time claims started coming in and hitting their books, they could see that they were underwater in terms of seeing a profit.”

“Insurance companies set their rates in advance for the year; they have to file with the state,” he explained. “So by the time claims started coming in and hitting their books, they could see that they were underwater in terms of seeing a profit. So they’ve reacted to that, and this past year, the rates went up significantly.”

“So they’ve reacted to that, and this past year, the rates went up significantly — and in this current year, it’s still going on,” he continued. “It’s a challenge for brokers like ourselves; we’re getting quotes from different companies to try to mitigate some of these increases, but we’re finding they’re all pretty much raising the rates. It’s not isolated.”

Dowd explained a concept well-known in the insurance world, but perhaps not to many customers: the loss ratio. The break-even figure is 100%, meaning that, for every dollar a carrier collects in premiums, it’s paying that much back in claims and administrative costs.

“So, obviously they want to be at least a few points under that to be able to make a profit,” he said. “On the automotive line alone, we’re seeing loss ratios of 110%, 115%. When that happens, they have no choice but to raise their rates because these losses eat into their profits and cause all kinds of problems for companies.”

Why they got caught flat-footed is a story with several different factors, which Dowd and Phillips shared with BusinessWest for this issue’s focus on insurance.

 

Parts of the Problem

Among the ways the pandemic has continued to affect the insurance world are two terms everyone is weary of by now: inflation and supply chain.

“When you’ve got a damaged car and you have supply-chain problems because of COVID, you can’t get parts, and then you had a stimulus from the federal government that just caused inflation. So now you can’t get a part, and they’re more expensive, so these claims have gone through the roof,” Phillips said, citing electric vehicles in particular. He noted that the average cost to repair the bumper of a Rivian electric truck after a collision is $4,200, and the Tesla is the most expensive car to insure in the U.S.

Joe Phillips

“When you’ve got a damaged car and you have supply-chain problems because of COVID, you can’t get parts, and then you had a stimulus from the federal government that just caused inflation.”

Dowd agreed. “All the technology is more expensive. What used to be a $1,500 bumper repair is now $2,500, and that’s because of the sensors. It looks like there’s not much damage, but when you have to replace all the sensors, all of a sudden, you’re asking, ‘how did this bill escalate to this level? It didn’t look like that much damage to me.’ But it was in a bad spot where you had to replace the sensors.”

Beyond the availability and complexity of parts is the sophistication of technicians themselves, who understand the electronics in today’s high-tech cars, Dowd added. “With a lot of technologies built in, the technicians that do these repairs have to be trained properly, and there’s a shortage of them. So it’s the cost of products and labor, it’s the availability, the supply chain, qualified technicians … they’re sort of coming together at once.”

And it’s no myth that accidents are up, Phillips added. “The distracted driving is huge. Not to sound like the old guy, but these kids can’t put their phones down. When you get to a stop sign, you see these young people getting on their phone for 15 seconds, and you have to beep at them. And then the reaction … oh boy.”

Severe weather events in recent years have also played a part in rising insurance rates for every type of coverage, from home and auto to commercial, he noted.

“It’s a real confluence of things coming together to create almost a perfect storm,” Dowd added. On one hand, everyone knows about inflation and what that’s done to prices, whether at the grocery store, the gas pump, anywhere. The cost of parts to repair cars, the cost of materials to repair homes, everything has gone up, and it’s gone up in rather a dramatic fashion over the last 12 to 18 months.”

He noted that inflation has begun to wane, “but there still supply-chain challenges, and that creates delays getting parts, which creates delays in getting the car back, which means you’ve got to rent a car … these are all ripple effects of what’s going on.”

And it’s caused concern in the insurance industry, Phillips said, as evidenced by recent waves of layoffs at national carriers like GEICO and Liberty Mutual. “They’re not making the money they once did because of increased claims.”

Meanwhile, Dowd said, the retail market — which is the realm in which he and other local agencies deal with clients — is being pressured by the reinsurance market, which, as the name suggests, is populated by companies that reinsure much of the risk from retail carriers, which pay a premium to the reinsurer to limit their exposure to catastrophic loss.

“The reinsurance market has been tested financially in the last couple of years, like they haven’t been in a long time,” he explained. “Judgments are higher, the juries are awarding higher payouts to injured people, and it’s starting to get into the reinsurance layer, so the reinsurers have raised their rates; they charge their retail carriers higher premiums, and the retail carriers pass along some of these increases to their customers. For us, that’s another factor.”

With weather events alone contributing to $95 billion in insurance claims last year, much paid out by reinsurers, Dowd said, “they’re scrambling to make their profit.”

 

Risk and Reward

In short, there’s a lot going on, and it’s not a Massachusetts problem, Dowd said. “It’s a nationwide issue, and as brokers, we’re the ones that have to deliver the bad news. We certainly understand the level of concern the customers have, and we don’t want to deliver that news any more than they want to hear it.

John Dowd

John Dowd

“The reinsurers have raised their rates; they charge their retail carriers higher premiums, and the retail carriers pass along some of these increases to their customers.”

“We’re doing the best to find alternatives for them to keep increases to a minimum; sometimes we can, but sometimes we can’t,” he went on. “Every change you make to a policy to try to reduce cost, whether a huge deductible or less coverage, it’s all a gamble. It’s like going to the casino. When you take on a higher deductible or reduced coverage, you’re betting on not having a claim. And that can work for you, but it can work against you.”

Phillips agreed. “Everyone wants the lowest cost until they have a claim. When people come in for a quote, they say, ‘I don’t need that, I don’t need this.’ And when they have a claim, they say, ‘oh, I definitely would have taken that.’ Well, it would have only cost $32 a year.

“We never sell the lowest limits,” he went on, but sometimes clients will insist on saving a couple hundred dollars to raise a $500 deductible into the four-figure range. “People think they can tolerate a $2,000 collision deductible until they have the accident.”

Those who want to keep their costs down should not only shop prices, Phillips added, but be aware of their credit score and their driving record — “even a failure to stop or a speeding ticket can add hundreds of dollars of premium” — but also be aware of the type and make of the vehicle they buy, which greatly impacts coverage, based on average theft rate and repair costs.

Dowd said certain people, who have a long track record of safe driving, may be fine taking a higher deductible.

“There’s obviously no guarantee. And if you take the savings and take a little more risk, you still need the catastrophic protection in case something serious happens,” he stressed. “You don’t want to cut into the muscle of the coverage where the catastrophic protection isn’t there, which can really hurt people financially.”

After all, insurance is all about protecting against the most severe losses — even if purchasing it makes a bigger dent than it used to.

Dietz & Company Helps Its Young Team Members Advance

By
Clockwise from top: CFO Tina Gloster and Principals Kevin Riordon, Lee Morrissette, and Jason Newman
Architecture Special Coverage

Professional Development — by Design

Clockwise from top: CFO Tina Gloster and Principals Kevin Riordon, Lee Morrissette, and Jason Newman

Clockwise from top: CFO Tina Gloster and Principals Kevin Riordon, Lee Morrissette, and Jason Newman (Photo by Paul Schnaittacher)

To explain what it means to be named an Emerging Professional Friendly Firm, Jason Newman offered some background on what it’s like to be an aspiring architect.

‘Aspiring,’ because simply earning a degree and going to work at an architecture firm doesn’t make one an architect; other requirements are experience — a certain number of hours worked in the field — and a series of examinations.

“Part of the experience piece is the hours worked in this office, and those hours are not just a lump-sum number of hours worked — it’s a number of hours worked in specific categories of the profession, like drawings, construction administration, and practice management,” said Newman, a principal at Dietz & Company Architects in Springfield.

“One of the things we pay attention to, very thoughtfully for every employee, is that, if you’ve got all your drawing hours satisfied, we’re not going to make you do drawing for another two years,” he went on. “That’s not going to move you forward to your license. So you won’t come to the end of the road here at Dietz and feel, ‘I’m just getting drawing. I have to go somewhere else where I can get construction-management experience.’

“If you’ve got all your drawing hours satisfied, we’re not going to make you do drawing for another two years. That’s not going to move you forward to your license.”

“This is not Boston, where 100 qualified architect candidates are at our door. We have to take care of the people here because we want them to stay,” he went on. “We want to make sure that they feel growth opportunities are here.”

That’s precisely the philosophy behind the Emerging Professional Friendly Firm program overseen by the New England components of the American Institute of Architects (AIA). A handful of firms in each New England state are so recognized each year — Dietz among them for several years running — for promoting the advancement of young team members through professional development and personal growth opportunities.

“A few years back, AIA New England came out with programs to encourage companies to adopt policies and procedures and training and internal education programs that would further develop the younger generation of architects fresh out of school, to take them in and help them grow professionally toward architecture licensure, which is what everyone refers to as the ‘stamp.’ That’s when you officially call yourself an architect,” Newman explained.

“This is a program to encourage firms to get away from the old methods of pigeonholing, where, in many cases, your first experience on an architecture job was drawing bathrooms for three years, being tucked into one thing because you’re brand new,” he went on. “The goal of this program was to incentivize firms to be more supportive, to promote emerging professional development.”

Lee Morrissette, another principal, spent more than a decade in Boston before coming to Dietz, and said he has always appreciated its emphasis on mentorship, continuing education, and lifelong investigation of the profession. “It’s a much more transparent firm, in the way the business goes on, than anywhere I’ve been.”

Jason Newman

Jason Newman

“A lot of the junior staff see when we get praise for our designs — or criticized for our designs. It gives them a fuller perspective on what’s happening beyond the drawings.”

It certainly made an impression on Newman, who came to Dietz as a student intern 13 years ago and “never found a reason to leave,” as he put it. “So I’m an example of someone to wants to stay with this firm because they feel this is a good, long-term place for them.”

 

Drawing Up a Strategy

According to AIA New England, the Emerging Professional Friendly Firm program “has an ability to attract and retain employees by sending a message to current employees, future employees, and other regional firms that the firm has evaluated their policies from an emerging professional lens, the firm recognizes emerging professionals at their firm, and the firm values emerging professionals’ development to sustain the future growth of their practice.”

That resonates with Newman, who noted that the aim is for young professionals to think, “that’s a great place for me to be. That’s a great place for me to grow. I know, when I go to other firms, my development will be of value not only to me, but to the company and the people I’m working with.”

To earn that designation year after year has involved a series of proactive steps, Morrissette said, including that emphasis on diverse experiences that move staff toward licensure more quickly.

“Many larger firms get a bad reputation for being the kind of firm where you get stuck in a position, doing that function for a long time, falling between the cracks,” he noted. “We call ourselves a mid-sized firm — at 25 people, we’re the largest in Western Mass., but still a mid-sized firm for the country — so we get a lot of face time with the staff. It’s hard for someone to fall through the cracks here.”

In addition, Newman said, “we make sure entry-level people are getting the whole experience. We include the whole team in project meetings. I’ve been in the industry 13 years, and back then, the architect and the project manager went to the meeting, and they came back and told you what happened.”

Lee Morrissette

Lee Morrissette

“Over the past two years, we’ve spent more time doing creative designs. That’s what makes us happy as professionals — being able to stretch our creative muscles and push ourselves.”

But the rise of remote meetings made it more common to include everyone, and now it’s simply firm policy at Dietz.

“A lot of the junior staff see when we get praise for our designs — or criticized for our designs. It gives them a fuller perspective on what’s happening beyond the drawings,” Newman explained. “Twenty to 30% of what we do as architects is management of expectations, helping people pull their own creativity into the designs, helping them express ideas that they don’t know quite how to express. Well, this gives the junior staff exposure to that earlier than what they have been given traditionally.”

All staff members are also given a stipend each year, called an educational allowance, which can be used for anything they feel will better their professional development.

“Architecture is a mixture of art and science, and we want to create buildings that are beautiful and people want to look at, but also stand up and are good, strong structures,” Newman noted. “So we allow a very broad interpretation of what is an activity or class or training someone might feel would better their professional growth. It might be as simple as a painting class, targeting the artistic side, or a business of architecture class, or project management class, or they might want to buy books because they’re studying for an exam. People use it in very creative and interesting ways.”

Morrissette and Newman also value the culture of mentorship they’ve seen — and helped cultivate — at Dietz & Company.

“We both love teaching. We both participated in university reviews of student works in a volunteer way,” Morrissette said, adding that he has taught at Wentworth Institute of Technology in Boston as adjunct faculty. “I loved being involved. But we’ve found, with this focus on teaching and mentoring in the office, we can do that teaching here. For me, it satisfies the reward I get from teaching and mentoring professional staff, and I get to do it as part of my job.”

 

Something to Build On

That job has expanded since Newman, Morrissette, Principal Kevin Riordon, and Chief Financial Officer Tina Gloster began easing into leadership roles last year as part of the firm’s transition from a single owner — President and Trustee Kerry Dietz — to one with an employee stock-ownership plan, or ESOP. Meanwhile, the firm has continued to expand its footprint, including more work outside the 413.

“It’s been a really great year. We’ve had a tremendous amount of work,” Newman said, adding that, while not every project is exciting from a creative perspective, he’s gratified to work on anything that benefits a community or a client. But some of this past year’s work has, indeed, been on the “cool” side. “We’ve shown we can get in with the Boston guys and compete. It’s really encouraging. It shows our model is working and we’re getting better and better every day.”

Morrissette agreed. “As an architecture firm, we’re always looking for more work. You want to do everything; the company wants to pay the bills. But over the past two years, we’ve spent more time doing creative designs. That’s what makes us happy as professionals — being able to stretch our creative muscles and push ourselves.

“You know, we feel creative success at the end of a project that no one knows about for a year or two until it’s built. Then they say, ‘that’s a great project.’ We have projects we’re proud of, and we can’t wait for the public to see them.”

Cannabis-grinding Study Could Lead to Safer Workplaces

By
Frank Dailey shows off some equipment used to grind cannabis.
Features

Breathing Easier

Frank Dailey shows off some equipment used to grind cannabis.

Frank Dailey shows off some equipment used to grind cannabis.

 

From his background in plant management and chemical engineering, Frank Dailey said, he understands the risks involved in manufacturing anything, let alone a product with so little research available in the realm of workplace safety.

So, when asked to take part in a National Institute of Occupational Safety & Health (NIOSH) evaluation of the cannabis grinding process at Boston Bud Factory, the Holyoke business Dailey owns, he was enthusiastic about it.

The study was first slated to take place at Trulieve in Holyoke, where an employee died in January 2022. The 27-year-old production technician suffered a fatal asthma attack while working at the indoor cannabis cultivation and processing facility. According to the Massachusetts Department of Public Health (DPH), the death occurred seven months after she started employment at the facility and three months after she began working as a flower technician, which involved processing and handling whole and ground cannabis flower buds.

Boston Bud Factory was contacted by Danny Stair, a local industry advocate and former Trulieve employee, who was concerned the study was in jeopardy following Trulieve’s departure from the Massachusetts market last year. So Dailey contacted NIOSH directly and volunteered his operations for the study.

“We put up signs when we’re grinding; we notify everybody. It can be a hazardous process. It doesn’t have to be, but it can be,” Dailey told BusinessWest. “We have to take into account allergens. Employees have allergic reactions processing some strains. It’s random; there’s no rhyme or reason.”

While he doesn’t know exactly what precautions were taken at Trulieve, “what I do know is that it’s common in the industry for large corporations to short personal protective equipment when the money’s tight. They need to pay for inventory. We’re answering to the money train in this industry, and it seems like it’s a common thing throughout the industry, that employees’ safety is not being looked out for.”

Dailey said Boston Bud Factory has already implemented strict PPE procedures when grinding cannabis due to possible employee reactions to dust, but still has concerns about whether the PPE was adequate, and he wants to be part of developing a wider body of knowledge that may become the basis for mandated workplace health regulations.

“People are talking about tax revenues and other issues in cannabis, but you don’t hear people talking about the effort the industry is making to keep their workers safe. Workers shouldn’t have to unionize and take extreme measures to implement safety in the workplace.”

“We know how dangerous dust is in other industries. Dust in foundries has caused explosions. Dust in factories has caused fires. As for cannabis dust, this is just the beginning of the employee exposure. As the industry grows, more and more dust is created.”

One of his employees with specific sensitivity concerns actually wears not only a Tyvek suit with a particulate mask, but also gloves duct-taped to the sleeves so the dust doesn’t get up the sleeves.

“These are techniques from the pharmaceutical industry that are easy to implement if someone is paying attention and has proper safety protocols in place,” he explained. “People are talking about tax revenues and other issues in cannabis, but you don’t hear people talking about the effort the industry is making to keep their workers safe. Workers shouldn’t have to unionize and take extreme measures to implement safety in the workplace.”

During the on-site visit, NIOSH will set up airborne particulate monitoring during the grinding process to see what the exposure is and how many airborne particulates employees are subject to.

“We use dust masks, basically particulate masks, and that should be enough in most cases. We’re not talking chemical fumes; it’s simply airborne particulates,” Dailey said. “But we need to know whether we need to go to N95 or a higher level to make sure enough particulates are captured.”

Historically, he added, a lot of cannabis manufacturing has been done underground, where employee safety isn’t paramount.

“We’re one of the smallest operations in Massachusetts; we’re fighting for survival,” he added. “But we need to do something to set some standards in this emerging industry.”

 

 

Statewide Investigation

Also in the wake of the death at Trulieve, the Massachusetts Department of Public Health (DPH) recently released an investigative report outlining additional steps the cannabis industry should take to prevent work-related asthma and sent a bulletin to healthcare providers in the Commonwealth urging vigilance in identifying work-related asthma among workers in that industry. The bulletin reminds providers that they are mandated to report cases of work-related asthma and other respiratory diseases to DPH.

While the Holyoke death is the only known asthma death in the U.S. cannabis industry, other cases of non-fatal respiratory disease among Massachusetts cannabis workers have been reported. According to DPH, cannabis-industry workers can be routinely exposed to numerous occupational respiratory hazards, including cannabis dust, mold, volatile organic compounds, pollen, bacterial endotoxins, pesticides, soil components, and cleaning disinfectants, which can cause and/or exacerbate chronic diseases, like asthma, if not addressed.

Massachusetts has more than 500 licensed cannabis industry employers providing jobs to more than 22,000 workers.

“The legalized cannabis industry in Massachusetts is relatively new, and the impact on the health and safety of workers demands our careful attention,” Public Health Commissioner Dr. Robert Goldstein noted in a statement. “As this workforce continues to expand, it will require all of us working together — state and federal agencies, regulators, healthcare providers, and the cannabis industry — to improve working conditions for these employees. At DPH, we will continue to identify and follow up on these cases using our long-standing public-health surveillance system for work-related respiratory disease and continue to work with our partners on documenting cases, building evidence around workplace hazards, and on intervention and policy.”

“The legalized cannabis industry in Massachusetts is relatively new, and the impact on the health and safety of workers demands our careful attention.”

According to DPH, work-related asthma is underrecognized in part because symptoms and industry and occupation data are not routinely collected. Yet, about 17% of new-onset adult asthma cases are related to workplace exposures. In Massachusetts, an estimated 200,000 adults have work-related asthma, according to data from DPH’s Occupational Health Surveillance Program.

In its bulletin, DPH urged healthcare providers to:

• Ask patients with new or worsening respiratory or allergic symptoms what they do for work and how it affects their health;

• Perform diagnostic testing, such as allergy testing, pulmonary imaging, and/or spirometry;

• Recommend workplace changes to avoid further exposure; and

• Report cases of work-related asthma and other work-related respiratory diseases to DPH, as required by law.

To improve worker safety, the investigative report recommended that employers:

• Assess and control hazardous materials in the workplace, including asthmagens;

• Ensure that all workers are properly trained about hazardous materials in the workplace;

• Develop and implement a comprehensive safety and health program that addresses hazard recognition, avoidance of unsafe conditions, and proper use of equipment; and

• Implement a medical surveillance program to monitor the health of their workers.

The report also noted that equipment manufacturers should adopt and implement the concept of ‘prevention through design’ to identify potential hazards associated with equipment and then eliminate these hazards through design changes; and that industry licensing agencies in Massachusetts should consider how they can further support the health and safety of cannabis-industry workers.

“Levels of exposure to cannabis dust at work are much higher than what is present during recreational use,” said Emily Sparer-Fine, director of DPH’s Occupational Health Surveillance Program. “Work processes that include grinding and concentrating an allergen need to be better controlled. It is critical for employers to assess and control exposure to hazardous materials, including the respiratory hazards found in the cannabis-processing facilities, such as cannabis dust.”

 

The Effort Continues

All this is gratifying to Dailey, who thanked Stair for ensuring that the NIOSH Study was completed, advocating for the safety cannabis-industry employees, and helping prevent future injuries or deaths. Dailey claimed that larger cannabis companies are prioritizing profits and growth over workplace safety, so it is important that advocates and smaller companies step up to take the lead in setting industry standards to ensure workplace safety.

“We are proud to be one of the first companies to prioritize worker safety over profits. Boston Bud Factory has said from the start that we didn’t want to be one of the big guys, and we still stand by that wholeheartedly,” he added. “We hope that the NIOSH safety evaluation will help determine industry standards that could help to ensure worker safety in this emerging and rapidly growing industry. Worker safety should always take precedence over profits, no matter how large the company is.”

PeoplesBank Restructures Leadership Roles, Plans Further Growth

By
Banking and Financial Services

Lending Perspective

 

Tom Senecal has been president, CEO, and chairman of PeoplesBank since 2016, and moving forward, he’s shedding the ‘president’ part of that title. But that doesn’t mean he’s slowing down.

“It’s more of a transition of the daily responsibilities,” he said, explaining why Brian Canina has been promoted to president and chief operating officer, and Hayes Murray has been promoted to executive vice president, chief financial officer, and treasurer, taking on some of Canina’s former duties.

“I reassigned to Brian three or four different responsibilities, but when you look at both of us, it’s still a lot on both our plates,” said Senecal, who retains his CEO and chairman titles. “This is a recognition of Brian’s success and talent and the timing of the growth that we’re going through. And quite frankly, the operational side of things needs more daily attention. And Brian really has the fortitude, the wherewithal, the work ethic, and the strategy to execute all the daily operational things. So it just made sense at this point in time to transition those responsibilities.”

Tom Senecal

Tom Senecal

“This is a recognition of Brian’s success and talent and the timing of the growth that we’re going through.”

After working together for almost 15 years — Canina as CFO and controller, Senecal as president and CEO — it just made sense to reward Canina for him efforts, Senecal added, “and, quite frankly, to make sure that we have our eyes on the ball as we continue to grow.”

Canina said he has prepared for this transition over the past year or two, operating in more than just a CFO role, and more like a COO, driving strategic initiatives and monitoring and managing the strategic plan of the bank along with Senecal.

“That will continue to be a focus of mine going forward, taking more responsibility away from Tom in terms of administratively managing the strategic plan and working with him as he identifies other strategies that he’s working on,” Canina explained. “So it’s not really a significant change; it’s something that we’ve been working toward, and with the size of the bank and how we’ve grown, it was a good timing to make this more formal change.”

The leadership changes will provide Senecal with more opportunities to plan and manage the growth and revenue activities of the bank, including retail operations, consumer lending, small business, municipals, and commercial and industrial divisions. Canina will continue to be responsible for finance, facilities, PeoplesWealth, the Business Solutions Group, and information technology. In his new role, he will also be responsible for human resources, marketing, and corporate responsibility.

“I’ve kind of shed some meeting responsibilities and a few of the operational responsibilities, but my focus is on growth,” Senecal said. “We have both an organic strategy of growing the bank by opening branches, and also non-organic opportunities. We’re constantly having conversations with other banks, and we will never be bought or sold, but we are looking at opportunities with other banks that might want to partner with PeoplesBank.”

Connecticut in particular continues to present growth opportunities. After adding branches in East Granby and Suffield through acquisition, then expanding the bank’s branch footprint into South Windsor and West Hartford, the bank’s board of directors has approved plans to open banking centers in Glastonbury and Avon, in addition to seeking other opportunities for future expansion.

Brian Canina

Brian Canina

“It’s something that we’ve been working toward, and with the size of the bank and how we’ve grown, it was a good timing to make this more formal change.”

“Our commercial-lending business has been extremely successful in the Connecticut market,” Senecal noted. “We’ve hired some commercial lenders and residential lenders in the Connecticut market. We’ve always had a large presence on the commercial side, but since we’ve developed the retail side, it has brought us some synergies in the relationships with those commercial customers, bringing them in as retail customers as well. It’s been hugely successful.”

Canina agreed. “We’re at a very important time right now to really continue pushing the growth of People’sBank down into Connecticut and looking into other areas to grow. That’s what we’re really focused on, and I feel confident we’re going to have a lot of success.”

 

Soaring Assets

The numbers tell the story of PeoplesBank’s recent upward trajectory.

“When I took over as president and CEO in 2016, we were a $1.8 billion bank,” Senecal told BusinessWest. “We ended 2023 just shy of $4.1 billion. So we’ve more than doubled in those seven years.”

The bank also boasts more than 300 employees and operates 20 banking centers across Massachusetts and Connecticut, with an additional five locations when its headquarters, ATM, and VideoBankerITM locations are included, he noted. “That’s quite a bit of recent growth, which is a credit to the hard work of our entire team.”

Over the past couple years, PeoplesBank also began partnering with Zynlo, a digital bank, Senecal said. “That is starting to really take off. When we talk about growth, traditionally, brick and mortar has been our main source of banking growth. With the digital bank, that has taken on a whole different perspective.

“We’ve got different lines of business, and we’re starting a personal banking division of the bank,” he added. “We have the PeoplesWealth division. Those weren’t in existence a few years ago, so these different banking channels are really what’s driving some of our growth.”

Other expansion opportunities exist because of the merger-and-acquisition environment among large banks and how that disrupts a marketplace, Canina said, citing as one example M&T Bank’s acquisition of People’s United Bank. “That acquisition opens up opportunities for us to jump in on the disruption down in the Connecticut market and, in some cases, Western Massachusetts as well, but mostly down in the Connecticut market, which is why we have our sights set on organic growth down there.”

Opportunities will also arise from banks that aren’t faring as well as PeoplesBank, he said, due partly to the compression on interest margins coupled with increased costs for human resources and compliance, as well as coming regulatory changes.

“Some of these smaller banks are really going to be challenged,” Canina explained. “And I think that we’re at a size — more than $4 billion in assets — where we’re in a very good position to partner with another bank that’s smaller and having challenges, so I think there’s going to be opportunity there for us.”

Of course, PeoplesBank continues to grapple with those same headwinds, he added.

“The challenges right now are coming from the interest-rate environment, where the margins have really compressed from the short-term rates coming up and long-term rates coming up a bit, but not as much as the short end of the curve. So we’re paying deposits on the short end and then lending out on the long end, and there’s not a big spread there. It makes it challenging, not just for us, but for all banks.

“At the same time, a lot of the pandemic deposits that came in have started to flow out; people started spending more money, and they have the ability to to move deposits anywhere they want very easily,” Canina continued. “So the industry has been challenged with managing the interest-rate environment and maintaining deposit levels, and I see that continuing into 2024. Depending on what happens with interest rates, it’s not likely going to let up until we see the short end start to come down. And then we’ll face some different challenges when that happens, because most likely there will be some potential recessionary concerns.”

On the residential side in particular, Senecal added, “I think it’s tough for every bank these days, even though interest rates have come down a little bit from their all-time highs in the last 20 years or so. But there’s no inventory. So, even though interest rates are high, what we’re seeing is, when something comes on the market, it sells, and it’s financed. It’s just that the inventory is so low. And that will be a challenge heading into 2024 for almost all banks.”

 

Hometown Focus

As he broadens his responsibilities in dealing with these issues and working with Senecal and other bank leaders on growth strategies, Canina added that he aims to continue — and grow — PeoplesBank’s commitment to the communities it serves, noting that the bank’s charitable giving continues to be a strength, with almost $6 million donated over the past three years alone, and more than $11 million over the past 10 years.

“I think what really separates us from the larger regional banks and the national banks — we’re so invested in the communities that we’re banking with, and even though we’re contributing the amount of dollars we are back to the community, we’re still paying interest rates that are competitive with any other bank out there.”

Meanwhile, employees donate thousands of hours of volunteer service to area nonprofits and charitable causes, he noted. “More than half of our bank is on a nonprofit board of some sort, and the amount of volunteer hours is very strong; that’s something that all of our employees hold near and dear to them and really keeps them engaged.”

Lawsuit Seeks to Limit Federal Reach into State-legal Cannabis Industry

By
Banking and Financial Services

A Matter of Survival

 

When asked what it takes to thrive in the cannabis business these days, Meg Sanders paused before noting that ‘thrive’ is the wrong word.

“I think thriving is part two. Right now, surviving is really the topic of the day. That’s what we need to be looking at,” said Sanders, CEO of Canna Provisions, which operates dispensaries in Holyoke and Lee.

And it’s not just because of the heightened competition that has arisen, both within Massachusetts and from across state lines, though that factor has caused some shops to close, with others likely to follow, as the market begins to settle, eventually determining how many dispensaries is too many.

No, that development has only exacerbated one of the key challenges for cannabis entrepreneurs: the fact that the drug is federally illegal, which makes financing thorny, normal business activities difficult, and the tax environment severe, to say the least.

“Our accounting bill is probably super elevated from a normal business. Our legal bill is probably way larger than a normal business because there are just so many T’s to cross and so many I’s to dot. And that’s just part of it,” Sanders said before detailing issues with access to financial services and lending. “What if we could get SBA loans? What if we could apply for federal grants? I mean, there’s so much money out there that a small business should be eligible for, but we can’t do any of that because we’re federally illegal.”

Meg Sanders

“What if we could get SBA loans? What if we could apply for federal grants? I mean, there’s so much money out there that a small business should be eligible for, but we can’t do any of that because we’re federally illegal.”

With that in mind, a coalition of U.S. cannabis operators and investors filed a lawsuit late last year against U.S. Attorney General Merrick Garland. The coalition asserts that the federal government has no basis for enforcing the Controlled Substances Act against intrastate, state-regulated cannabis operations. The plaintiffs include Canna Provisions; Gyasi Sellers, CEO and founder of Treevit; and Wiseacre Farm, all of which are independent operators in Massachusetts that claim to have suffered significant harm and business challenges due to federal prohibition.

Verano Holdings is also named as a plaintiff, while foundational supporters of the suit include Ascend Wellness Holdings, TerrAscend, and Green Thumb Industries, as well as Eminence Capital and Poseidon Investment Management.

The lawsuit seeks to confirm the rights of Massachusetts and other states to regulate cannabis within their borders, and to limit the federal government’s power to regulate commerce.

The Controlled Substance Act bars the production, distribution, and possession of marijuana, regardless of whether those activities cross state lines or, as in the case of the plaintiffs’ businesses, are intrastate. According to the lawsuit, “this unjustified and unconstitutional prohibition on intrastate cannabis harms plaintiffs and hinders the efforts of states to provide patients and adults with access to strictly regulated and tested cannabis.”

“The purpose of the lawsuit is to basically challenge the constitutionality of the Controlled Substance Act on intrastate activity. Basically, the suit alleges that the federal government has no say what happens within state borders,” Sanders told BusinessWest. “I wasn’t aware of this lawsuit until somebody recommended me to be part of it. So we had substantial meetings with our legal team and our board about this particular issue, and we all felt like there’s something here, and that this is an important way to approach it.”

 

Tough Environment

Cannabis banking has softened somewhat in Massachusetts, Sanders was quick to note. “I would say Massachusetts is probably one of the friendliest banking states in the United States as far as cannabis. We have a lot of very thoughtful, kind, smart bankers out there that are trying to service the industry. And that’s great; we have checking accounts, we have saving accounts, some of us are able to do debit-card acceptance. But we can’t take credit cards. I can’t get a business loan. Equipment loans are out there, but they’re at a really high interest rate. And also, I can’t get access to normal payroll services. So I can’t work with an ADP or a Paychex or some of the big guys that are really good at what they do.

“If you’re signing up to be in cannabis, you’re signing up for all of these headaches. This is the nature of the beast. And it’s not negotiable; those are the facts. This is what we have to deal with every single day. And it’s really, really hard.”

The lawsuit also takes aim at what’s known in the IRS tax code as Section 280E, which originated from a 1981 court case in which a convicted cocaine trafficker asserted his right under federal tax law to deduct ordinary business expenses. In 1982, Congress created 280E to prevent other drug dealers from following suit.

So, while state-legal cannabis businesses are allowed to deduct the cost of goods sold when paying taxes, they can not take other deductions normal to most non-cannabis businesses — salaries, health insurance, utilities, maintenance, and much more. “So I have an effective tax rate of 73%,” Sanders said.

In 2005, the U.S. Supreme Court rejected a challenge to the Controlled Substance Act’s cannabis prohibitions.

But, according to a press release announcing the new lawsuit, “a critical factor in that decision, Gonzales v. Raich, was that the federal government intended to ‘eradicate’ the market for cannabis nationwide. The court concluded that the federal goal of eliminating commerce in cannabis, combined with the assumption in 2005 that intrastate marijuana could not be differentiated from interstate cannabis, justified the Controlled Substances Act’s prohibitions on intrastate cannabis. Neither of those facts, however, are true today. In the 18 years since Gonzales, Congress and the executive branch have abandoned any intent to ‘eradicate’ cannabis, and numerous states have developed regulatory programs for legal marijuana that is not fungible with, and is readily distinguished from, illicit cannabis.”

Indeed, the plaintiffs note, today, 38 states and Washington D.C. have medical or adult-use cannabis programs with significant regulatory oversight, requiring compliance with stringent regulations aimed at protecting patients, customers, and the public, including video surveillance and seed-to-sale tracking.

“Absent the relief sought in this lawsuit, plaintiffs and other state-regulated cannabis operators will continue to suffer severe harms,” the release notes. “State-regulated cannabis businesses are deemed illegal under the CSA; their everyday activities are considered federal crimes. As a result, they are cut off from numerous federal programs and protections (including small-business loans), they are subject to discriminatory tax penalties, and many organizations — including banks and credit-card processors — refuse to do business with them, rather than risk being deemed conspirators, aiders and abettors, or money launderers.

“The result is that many cannabis businesses are suffering, people are losing their jobs, and individual wealth is being destroyed,” the statement continues. “In addition, social-equity licensees harmed by the war on drugs and who were supposed to have equal access to the industry do not have the same benefits as otherwise situated business owners to start a business and build their wealth.”

 

Appetite for Change?

Sanders sees this lawsuit as a kind of parallel track to other ongoing efforts to disentangle federal and state laws, thereby easing the cost of business in the cannabis industry, with many hoping Congress steps in at some point and removes cannabis from the Schedule 1 list of controlled substances.

“There are a lot of legislators that really support and see cannabis as an industry for their constituents and understand that jobs are being created and there’s a lot of revenue. And, bottom line, their voters want to buy weed from a regulated dispensary,” she told BusinessWest. “That’s what we see every single day. We still have more people coming in. And what voters are telling legislators is they want safe access to cannabis.”

At the same time, Sanders understands that Congress has many competing priorities, and that they struggle to come together in a bipartisan way on any issue.

“Until politicians see voters saying, ‘well, because you’re negative on cannabis, we’re not going to vote for you,’ I don’t think you’re going to see a change. I mean, that’s their business. Their business is to get votes. As voters, we want legalization, but there are so many other things that are separating us as a country, and those are way more important, probably, in the eyes of legislators.”

Top Entrepreneur 2023

By
Executive Director Andrew Morehouse
Cover Story Top Entrepreneur

A Hunger to Do More

The Food Bank of Western Massachusetts Dramatically Grows Its Operations

 

Executive Director Andrew Morehouse

Executive Director Andrew Morehouse

 

It’s long been a tenet among nonprofits — successful ones, anyway — that they need to think entrepreneurally in order to thrive and grow. To think, in other words, like successful for-profit businesses do, in terms of resource allocation, financial planning, workforce management, and day-to-day operations.

And no nonprofit has been more entrepreneurial — and more ambitious — over the past few years than the Food Bank of Western Massachusetts, whose $30 million project to build a new, larger headquarters in Chicopee culminated not only in last month’s grand-opening ceremony, but in the dramatic expansion of its capacity to perform work it was already doing on a massive scale.

The project — and the accompanying campaign that raised about $15 million of that cost from private donors and $15 million from state and federal governments — started just before the pandemic and continued through those challenging years, making the successful conclusion especially gratifying to Executive Director Andrew Morehouse and his team, and earning the Food Bank recognition from BusinessWest as its Top Entrepreneur for 2023.

“The Food Bank of Western Massachusetts’ new, state-of-the-art facility will allow their dedicated team to provide greater access to healthy, nutritious foods to thousands more of our neighbors in need and expand service routes to partners throughout the area.”

“We have to be innovative. We have to be able to adapt to circumstances,” he said. “We have a strategic plan, and every year, we have specific objectives — and all that can go out the window if something happens, like a pandemic, and then we have to pivot.”

That applies to any entity — for-profit or nonprofit — of this size, Morehouse added, noting that the Food Bank has a $9 million annual operating budget, and the value of the food that comes through is about $18 million, so this is essentially a $27 million operation, with a staff of 67, and plans to hire another 14 by the end of 2024.

Andrew Morehouse addresses guests

Andrew Morehouse addresses guests at the Food Bank’s grand-opening ceremony last month.

“We acknowledge that it’s the dedication and talent of our staff that’s the source of our success,” he told BusinessWest. “That’s our ethos as a business — that we can succeed in our mission when we acknowledge and invest in our staff and the hard work that they’re doing.”

The new food-distribution center, located at 25 Carew St. in Chicopee, is twice the size of its previous Hatfield location, with an additional 18,000 square feet in the warehouse alone. Floor-to-ceiling warehouse racks and expanded refrigeration and freezer sections enhance efficiencies and enable the Food Bank to store and quickly distribute more healthy food than ever before to 175 member food pantries, meal sites, and emergency shelters across all four counties of Western Mass.

The new site also features a dedicated community space with a working kitchen for cooking and nutrition classes and other educational events. Other efficiencies include electric charging stations, an expanded member pick-up area, and plenty of parking for staff and volunteers. In 2024, the Food Bank will add a solar array on the roof and a canopy over part of its parking, along with backup battery storage that will fully support all electricity needs of the building.

“That will make it a greener building, so there are efficiencies to be gained,” Morehouse said. “We expect that building to be near-carbon-neutral and generate most of the electricity that we need.”

The investment in the relocation project and its capital campaign is already bringing palpable returns. In just the first three months since moving in, the Food Bank has already provided 25% more healthy food than the same period last year — the equivalent of more than a half-million meals. In all, the Food Bank provides a little more than 1 million pounds of food every month, or the equivalent of 850,000 meals.

“The more we thought about moving to Hampden County, the more we realized that was what we needed to do.”

“The Food Bank of Western Massachusetts’ new, state-of-the-art facility will allow their dedicated team to provide greater access to healthy, nutritious foods to thousands more of our neighbors in need and expand service routes to partners throughout the area,” U.S. Rep. Jim McGovern said at the grand opening. “I’m proud of the Food Bank’s 40 years of history serving our community and their continued leadership on the national stage in our movement to end hunger now.”

 

An Overstuffed Facility

The Food Bank, which traces its history back to 1981, expanded its facility in Hatfield just before the Great Recession, and then maxed it out as food-insecurity needs exploded during the ensuing years of difficult economic conditions.

“We had no available space, and we continued to see heightened demand, and that left no space at all for continued growth,” Morehouse said, noting that the Food Bank has grown its operations by about 6% annually between 2006 and last year.

The new Chicopee headquarters

The new Chicopee headquarters doubles the size of the former Hatfield site.

“We knew around 2016 that it was unsustainable, that we would need a larger space in order to continue to accommodate more food and to address increasing food insecurity whenever there was another adverse impact on the economy, whether it be a recession or … who would have known?”

Who, indeed. When COVID struck, the Food Bank had already been scoping out properties — and considering numerous options, such as a two-location model that was rejected because of its expense. But soon after, in 2020, the nonprofit found its ideal spot in Chicopee, launched the capital campaign in 2021, and started building in 2022.

The site had a couple of advantages, one being its proximity to two interstate highways, another being the county’s population and demographic makeup, Morehouse explained.

“The more we thought about moving to Hampden County, the more we realized that was what we needed to do — not only because of the proximity to the largest concentration of people who are faced with insecurity, but also because, quite frankly, it would enable us to strengthen our relationships with communities of color, which, unfortunately, face food insecurity disproportionately relative to the rest of society.”

As for the campaign, it drew the support of 246 individuals, businesses, and foundations — but there was some anxiety early on, especially since it was launching during a challenging economic time, year two of the pandemic.

“If we don’t acknowledge that the problem exists and we don’t, as a society, want to do something about it, we’re not going to make any progress.”

Morehouse credited the early, significant support by Big Y and MassMutual in “grounding” the campaign and lending confidence that it could succeed. After that, the entire banking community stepped in, as did and a host of other businesses, foundations, and individuals, including major contributions from the Irene E. and George A. Davis Foundation and C&S Wholesale Grocers.

“Before we had launched the campaign, there was a lot of internal discussion and planning, and I just had the faith that we could accomplish it and that the community would rally behind us, and they did,” he said. “Our board felt the same way, so we went public after we secured some of those large commitments. So we had something to start with, and then we were able to inspire and persuade the rest of the community to jump on board, and they did.”

One factor, he noted, was that the pandemic focused more attention nationally on the issue of food insecurity across the country — attention that was needed even before COVID, but was definitely in the public eye now.

announced large pledges to the Food Bank’s capital campaign in 2021

Andrew Morehouse (center) with Big Y President and CEO Charlie D’Amour (left) and Dennis Duquette, MassMutual Foundation president, when they announced large pledges to the Food Bank’s capital campaign in 2021.

“If we don’t acknowledge that the problem exists and we don’t, as a society, want to do something about it, we’re not going to make any progress,” he said. “So it was gratifying that the community rallied behind our campaign to help us to be successful. And now we have this facility, this community resource, that can make even greater impact in addressing food insecurity, but also to serve as a place for convening, for learning, for collaborating, for taking action.”

The ‘action’ part of that goal is clearly the most important.

“If we’re ever going to end hunger, we need to raise awareness, and that happens through education and dialogue, but also through the power of public policy and the changes that we can make to public policy and investments in people, families, and communities to ensure that everyone can lead a healthy and productive life,” Morehouse said.

“That means addressing not only the food assistance that people need today, but the underlying causes of hunger,” he went on. “Do people have access to affordable housing, childcare, transportation, education, jobs that pay a meaningful wage to support families? All of those are things we need to be looking at as a society.”

After 19 years in charge of the Food Bank, it’s a lesson that has grown clearer every year. “I’ve been in the nonprofit world for over 30 years,” he said, “and I’ve always enjoyed building things, building capacity, because that’s how, ultimately, I think you create social change and economic change for the better, for families and communities.”

 

In and Out

The Food Bank’s reach is impressive, serving as a clearinghouse of emergency food for the region, most distributed to local food pantries, meal sites, and shelters.

Much of the food the organization collects is purchased, using state and federal funds, from wholesalers, local supermarkets, and dozens of local farms; farmers also donate more than a half-million pounds of food each year.

“We then turn that food around — we store it here and distribute it through a vast network of about 175 food pantries, meal sites, and shelters across all four counties of Western Massachusetts,” Morehouse explained. “That’s how about 85% of the food that we receive flows through, ultimately to individuals in need of food assistance.”

In addition, the Food Bank operates a mobile food bank for direct-to-household distribution at 26 sites once or twice a month, plus a brown-bag program for elders that boasts 52 partners, mainly senior centers. The nonprofit also receives reimbursements to provide some individuals with supermarket gift cards, in addition to referring them to food-pantry meal sites.

And because food insecurity is often entangled with other economic and social needs, “we do refer individuals to some other nonprofit partners who can provide them with affordable-housing assistance, transportation, childcare, job training, things of that sort,” Morehouse added, noting that the Food Bank uses the 413Cares system to coordinate referrals with partners. “We’re all trying to figure it out and find a way to help people lead healthy, productive lives.”

Some of the Food Bank’s top supporters recognize the importance of those efforts.

“Our goal, our mission, is to feed families,” outgoing Big Y President and CEO Charlie D’Amour (see story on page 4) said when announcing financial support for the Food Bank early in the campaign. “We have people in our communities that are really struggling to get food on their table. The role of food banks serving local neighborhoods has never been more important.”

Country Bank President Paul Scully felt the same when announcing a large donation in 2021. “With everything we’re hearing these days about the shortage of food and the high expense of food … the need is real out there,” he said. “As a community partner, we care deeply about the sustainability of our communities and the people who live in them.”

What they were acknowledging was a nonprofit that has been entrepreneurial in its efforts to tackle a widening problem.

“We’re very much like a for-profit business to the extent that we have overhead, we have trucks, we have inventory, and we have staff,” Morehouse said, noting that the Food Bank doesn’t have customers, exactly, but it does have key stakeholders, from the households facing insecurity to the meal sites and shelters that receive 85% of those distributions, to the federal and state agencies that pay for the food. “We have an obligation to those agencies to ensure that we’re delivering on our agreement with them.”

In addition, the Food Bank maintains contracts with the Department of Transitional Assistance to provide SNAP assistance and with MassHealth to provide food assistance to individuals who have chronic illnesses and are referred from hospitals and community health centers.

While the Great Recession and the COVID pandemic marked times of spiking need, that need never goes away, although it does fluctuate, Morehouse said.

“Inflation is coming down, and that might help … but folks are still struggling,” he added. “And, you know, we’re here to help them, give them a hand up.”

And at a higher level than ever before, thanks to an ambitious goal, some very entrepreneurial thinking, and a lot of community support.

Leadership at Big Y Shifts to the Third Generation

By
From left, Rick Bossie, Charlie D ‘Amour, Theresa Jasmin, and Michael D ‘Amour
Features Special Coverage

Passing Thoughts

 

From left, Rick Bossie, Charlie D ‘Amour, Theresa Jasmin, and Michael D ‘Amour

From left, Rick Bossie, Charlie D ‘Amour, Theresa Jasmin, and Michael D ‘Amour

Charlie D’Amour says his father, Gerry, and uncle, Paul — the co-founders of Big Y Foods — had an outlook on work and business management that was typical of members of their generation.

“They came away with the notion that you died with your boots on — you just kept working until the end,” he said, adding that he is of a much different mindset, one of meticulously grooming the next generation of leadership, stepping back when the time is right and letting them take the reins, and … well, not working right to the very end.

And that’s exactly what’s been happening at Big Y over the past few years and especially the past several months, steps that ultimately led to the recent announcement that Charlie D’Amour would be assuming the role of executive chairman of the board and that his nephew, Michael D’Amour, would be taking the reins of president and CEO. Also, Richard Bossie, a 40-year-employee who is now senior vice president of Retail Operations and Customer Service, will be stepping into Michael D’Amour’s roles as executive vice president and COO. The moves are effective Jan. 21, and they are all significant in nature.

Indeed, Michael’s ascension to president and CEO represents a passing of the torch from the second generation of leadership to the third as the company approaches its 90th birthday (in 2026) and contemplates where it wants to be when it reaches 100. Meanwhile, Bossie becomes the first non-D’Amour family member to become COO, another significant step and poignant example of how the company is certainly bigger than the family and takes pride in putting people in jobs that can lead to careers, including those that involve the C-suite.

For Michael, the executive changes represent the continuation of a pattern set by his uncle Charlie and another uncle, Donald, before him — from humble beginnings working at one of the supermarkets (in Michael’s case, slicing cold meat in the deli) to a succession of leadership positions, and eventually to the corner office.

“I have an opportunity to stay somewhat connected with the business but also get out of the way. There is something unique about a family business; it’s hard to completely walk away from it. For so many years, and from a very young age, I’ve been involved with the company. I’m part of the company, and the company is part of me.”

He told BusinessWest that this is an important time for the company, not simply in terms of milestone celebrations and leadership changes, but also when it comes to challenges and opportunities for continued growth of a chain that now boasts more than 70 supermarkets as well as Table & Vine, which specializes in wines and liquors, and Big Y Express gas and convenience stores.

He said the company remains in a strong growth mode, and he can envison perhaps 100 or more stores by the time of the company’s centennial through a likely mix of organic growth and acquisition.

Bossie agreed, noting that, beyond continued growth, the company will have several other focal points in the years to come, especially in the broad realm of workforce.

The severe crunch that came in the wake of the pandemic when companies across all sectors, but especially this one, struggled to fill vacancies and fully staff stores is mostly in the rear-view mirror, but other challenges continue, including those involved with meeting the needs of a changing, more demanding workforce.

“There have been massive changes there since the pandemic, but even before then,” he explained. “There are greater expectations, and greater needs, now when it comes to the tools they need to do their jobs.”

As for Charlie D’Amour, 72, who had become the face of the company over the past several years, he said will step into what will mostly be an advisory role, one with a job description that he will write as he goes.

Michael D’Amour says he can envision 100 or more supermarkets

Michael D’Amour says he can envision 100 or more supermarkets by the time Big Y turns 100 in 2036.

“I have an opportunity to stay somewhat connected with the business but also get out of the way,” he said of this new role. “There is something unique about a family business; it’s hard to completely walk away from it. For so many years, and from a very young age, I’ve been involved with the company. I’m part of the company, and the company is part of me.”

For this issue, BusinessWest talked with senior management at Big Y about these changes in leadership and what will come next for the one of the region’s largest employers.

 

Produce Department

Michael D’Amour told BusinessWest that, while he — like other members of the second, third, and now fourth generations of the family — grew up in Big Y stores, handling a number of different assignments, he didn’t exactly set out to make this a career.

“In college, I was thinking about more about criminal psychology and things like that,” he said, adding that, when he returned home after graduating, he needed a job and, at his mother’s urging, took one working full-time in the deli department at the Big Y on Memorial Avenue in West Springfield.

After learning that side of the business, he moved on to other areas of supermarket operations and management, including the assumption of a lead role in creation of the food-services department that exists today, one that offers pizza, sandwiches, and many other options.

“We did business much the same way for decades, but over the past five years, the pace of change has greatly accelerated. We have to stay current, we have to stay educated, we have to stay knowledgeable, and we have to be able to share that wisdom and knowledge with our teams out in the stores.”

He would go on to open the company’s new store in South Windsor, Conn. in 2001, before moving on to other areas, including sales, produce, and fresh offerings, and eventually becoming vice president of Sales and Marketing and then COO in 2019. Since then, along with his uncle, Charlie, he has been a key face of the company and many of its recent initiatives..

Michael said he will bring to his new roles a leadership style he saw in his predecessors and is eager to emulate, one grounded in “listening more than we speak,” as he put it, giving employees at all levels the tools they need to succeed and focusing on teamwork.

As he talked, he made it a point to use ‘we,’ not ‘I’ when talking about leadership.

“We have an eye toward growth and innovation, not just with technology, but across the board,” he said. “We want to develop tools and processes to make our employees’ jobs easier and more effective, and also add to the customer experience.”

As for Bossie, he came to Big Y in 1986 after returning to the region after living in Alaska and working in a supermarket as a part-time service clerk.

He started working nights stocking shelves in the store in Great Barrington, and has since worked in all areas of store operations, including store director and, later, district director until his appointment as director of Operations in 2010.

In 2019, he was named senior vice president of Retail Operations and Customer Experience, where, in addition to his operations oversight, he also leads other retail banners such as Big Y Express gas and convenience and Table & Vine, along with teams for asset protection and continuous improvement.

He joins Michael D’Amour and Theresa Jasmin, the company’s chief financial officer, who joined Big Y nearly two decades ago and worked in a number of capacities before becoming CFO in 2020, as well as several of Michael’s siblings and cousins, as what would be considered the proverbial next generation of leadership at Big Y.

This new leadership group has come into place through careful consideration and a hard focus on succession planning, something that all ventures, and especially family businesses, need to make a priority, Charlie said.

The Big Y Express Market in downtown Springfield

The Big Y Express Market in downtown Springfield is one of the many additions to the company’s portfolio in recent years.

“We spend an awful lot of time across the organization looking at succession, planning for it, and making sure we’re thoughtful about it — and working at all levels of the team to get ready for this particular point,” he told BusinessWest.

“There are not a lot of companies that can brag about passing the reins on to the next generation,” he went on. “And I’m very excited that we’ve been able to do that. The second generation has been involved in it, we didn’t screw things up too, too badly, and now the third generation can step in and continue the growth that we’ve enjoyed.”

 

What’s in Store?

As he talked about what comes next, for the new leadership and the company as a whole, those we spoke with said the company has achieved a strong pattern of growth, and the goal will be to continue this ‘little run,’ as Charlie D’Amour called it.

In addition, Michael D’Amour said he wants the company to build on its reputation as a great place to work, efforts that have culminated in awards such as listing by Forbes as a ‘Best-in-state Employer’ in Massachusetts and Connecticut and recognition from Newsweek as one of ‘America’s Greatest Workplaces for Diversity and Women.’

“It’s becoming harder and harder, given the environment in Massachusetts and Connecticut, to get development of new sites going. As the development costs continue to increase, increase, increase, we’ve had to walk away from some locations because it didn’t make any financial sense anymore.”

“We’ve made a lot of progress over the past few years, but we still have a long way to go, and for us this is a never-ending journey,” he said. “It’s a point of focus for us along with innovation and growth. We do a lot to educate and grow our employees — it’s turned out to be a great strength of ours, to be transparent with information as best we can and to help them grow, as employees but also as individuals.”

Bossie agreed, noting that, as the workplace evolves and the workforce becomes increasingly dominated by the younger generations, companies must responsive to their employees’ needs and expectations if they want to be successful.

“We have to be focused on the things they like to do and want to do, more so than me working night crew in 1986,” he said. “That kind of work might not be appealing to this latest generation of employees that we have, so we have to manage our business differently; we have to employ different tools and strategies and continue to ask, ‘what makes our workforce most satisfied and most engaged, and how can they serve our customers the best?’

“We did business much the same way for decades, but over the past five years, the pace of change has greatly accelerated,” he went on. “We have to stay current, we have to stay educated, we have to stay knowledgeable, and we have to be able to share that wisdom and knowledge with our teams out in the stores.”

As for growth of the company’s portfolio of supermarkets and other facilities, there will opportunities for organic growth and acquisition, and especially the later, said Michael D’Amour, adding that the company has already seen some of these opportunities, and there will be more in the years to come.

“There are some companies that don’t have succession plans, and others that have been struggling since the pandemic,” he noted, adding that there are independent stores and several smaller chains of stores that could become acquisition targets in the near future. “We’ve seen some opportunities already, and we’re going to continue to look at them and vet them fully; we think that’s going to be a big part of our growth over the next few years.

“We’re not going to buy Kroger tomorrow,” he went on, referring to the Ohio-based supermarket giant. “But something digestible, anything between one store and 25 to 30 stores tops, and it has to be contiguous to our marketplace; we’re not going to leapfrog into Minnesota or Florida. We’re going to be very opportunistic with our vehicles for growth.”

Jasmin agreed, noting that the company has always taken a calculated, thoughtful approach to growth — not growing for growth’s sake — and that this mindset will continue moving forward.

Charlie D’Amour concurred, noting that acquisition will almost certainly be the preferred path to continued growth, given the mounting challenges to finding sites for new stores and then clearing all the hurdles on the way to cutting a grand-opening ribbon.

To make his point, he cited the chain’s store in Clinton, Conn., a facility that took six years to open from start to finish, more than double the time it would have taken maybe a decade or so ago.

“It’s becoming harder and harder, given the environment in Massachusetts and Connecticut, to get development of new sites going,” he said. “As the development costs continue to increase, increase, increase, we’ve had to walk away from some locations because it didn’t make any financial sense anymore.”

Liberty Bank Continues Expansion into Western Mass.

By
Banking and Financial Services Special Coverage

Moving North

President Dave Glidden

 

Dave Glidden has long referred to it as the “I-91 corridor strategy.”

This is the growth plan for Middletown, Conn.-based Liberty Bank, one that, as the name suggests, focuses on the I-91 corridor, which stretches from New Haven into Southern Vermont.

The bank has followed that strategy, increasing its presence in Southern Conn., and now Western Mass. as well, taking another important step in what could be called its northward advance with the opening last month of its first branch in this region — on Shaker Road in East Longmeadow, just a few miles from the state line.

The facility, a former United Cooperative and then PeoplesUnited branch, was home to a commercial loan-production office that Liberty opened in 2021 and eventually moved to the 23rd floor of Monarch Place in downtown Springfield — after that LPO gave Liberty a foothold of sorts and convinced Glidden, the bank’s president, and other members of his leadership team that it was time to open a full-service branch in the 413.

“We generated a lot of volume and a lot of new customers out of there, and some good deposits,” he said. “When it got to that point, I said, ‘OK … we’ve proven that there’s space and a place for us in this market,’ and that’s when I decided to move the commercial-lending team and their support staff to Monarch Place and tear down the sheetrock and outfit a nice branch on Shaker Road.”

“We are selectively and cautiously considering where to go next. We don’t have to be in a rush, but I can see a total of maybe three to six branches over the next few years — if the right opportunities present themselves.”

With that move, the logical questions — and Glidden was ready for them — is where will the bank go next within the 413, and when?

“We are selectively and cautiously considering where to go next,” he told BusinessWest. “We don’t have to be in a rush, but I can see a total of maybe three to six branches over the next few years — if the right opportunities present themselves.

“I wouldn’t force the issue,” he went on, saying there is no firm timetable and no specific number of locations as a firm goal. “Maybe three to six branches, strategically located, with drive-thrus, with the focus on catering to small to medium-sized business owners. That’s our future plan.”

How this plan shakes out remains to be seen, obviously, and we’ll delve more into where the Liberty name and logo might appear next. For now, the bank wants to continue solidifying its beachhead and take the I-91 corridor strategy to different corners of the 413.

For this issue and its focus on banking and financial services, BusinessWest talked with Glidden about the next possible steps with this strategy and how the drive north will unfold.

 

Points of Interest

Glidden laughed when he noted that, when people tell him they see the bank’s TV commercials — “the ones with the emu and that guy with the mustache” — he no longer makes the effort to correct them and inform them that those are for the insurance giant Liberty Mutual.

“Why bother — what am I fighting it for?” he asked rhetorically, adding quickly that the last four words of each of those frequently, as in frequently, aired spots — ‘Liberty, Liberty, Liberty … Liberty’ — constitute solid name recognition that he doesn’t have to pay for. “Every time I see that commercial, I’m cheering; people come up to me and say, ‘I saw your commercial.’ I just say, ‘thank you; let me open a checking account for you.’”

Bank employees and elected officials

Bank employees and elected officials cut the ceremonial ribbon last month on Liberty Bank’s East Longmeadow branch.

This form of free advertising, if you will, is just one of many things that have gone well for Liberty over the past several years. In fact, Glidden said 2023 may be the bank’s third straight year of record profits, though the final numbers are not yet in.

But even if it’s not a record, the bank is maintaining a strong upward trajectory, which it owes to several factors, but especially its aggressive I-91 corridor strategy and the qualities needed to carry it out and gain market share across that wide area.

Elaborating, Glidden said the bank has several advantages, from a name that resonates and crosses state lines easily to a broad portfolio of products on both the commercial and consumer sides of the ledger; from a commitment to the latest digital technology to an attractive size.

Indeed, with more than $7 billion in assets and 56 locations in Connecticut and two in the Bay State, Liberty, the oldest mutual bank in the country, can “out-local the national banks and out-national the local banks,” said Glidden, a native of Holyoke who is well-known in this region and has long considered Western Mass. the next logical area of expansion for the bank.

“We can deliver a balance sheet that’s going to be large enough for 99.9% of the companies up there to grow to whatever they want to be,” he said, adding that this size, coupled with lenders who know and hail from Western Mass., has enabled Liberty to make solid inroads in the local market and presents opportunities to gain market share in this region.

And many changes to the banking landscape, but especially the advent and continued evolution of digital platforms and mobile apps, make it easier to cross state lines, he went on.

“The habits of consumers and small businesses, what they’re looking for from a bank, are not the same as they were 15 years ago.”

“The habits of consumers and small businesses, what they’re looking for from a bank, are not the same as they were 15 years ago,” Glidden explained. “Do they want to know that their bank has a branch so that, if there’s an issue, they can go in and sit with someone and get advice? Yes. But, across the board, transactions and visitations to branches continue to decline, and that decline is not projected to slow down any time soon.

“And that kind of changes the playing field in the sense of being able to go over the line with maybe a toe in the market,” he continued. “If this was 10 to 15 years ago, and I made the decision that I wanted Liberty to go into Western Massachusetts and compete, I probably would have looked to do it through an acquisition strategy. That doesn’t mean that acquisition strategies are off the table, but you don’t have to do that now with digital and mobile apps.”

 

By All Accounts

As for the growth strategy in the 413, Glidden said that, as with the initial thrust into the region in East Longmeadow, the focus — the ‘macro strategy for this market,” as he called it — is an emphasis on small business and commercial lending, realms that build customers, relationships, deposits, and more, and cement the need for additional branches.

This was the strategy followed in New Haven, where the bank established an LPO, and again in Hartford. And it is the same strategy being deployed north of the border in Greater Springfield.

As he scans the Western Mass. landscape — and, again, he knows it well from his years as regional president at TD Bank — Glidden acknowledged that Western Mass., is, by and large, a no-growth area. And most of its communities — and East Longmeadow is squarely in this category — are considered overbanked.

But there are opportunities, he noted, adding that his team is looking at maps and crunching numbers as they consider where to go next.

There are what would be considered obvious landing spots, he said, mentioning larger population and commercial centers such as West Springfield, Holyoke, Chicopee, and Westfield, and these may well be the next push pins on the wall map.

“The analytics you use on this stuff gets so complicated … sometimes you need to just take a step back and say, ‘where are all the people, and where are all the businesses?’” he said. “And just put them there.”

‘There’ probably doesn’t mean Hampshire County, at least not at this time, he went on, adding quickly that he certainly wouldn’t rule out putting a branch in a community like South Hadley, which borders Holyoke, Chicopee, and Amherst, and is another of those ‘overbanked’ communities in Western Mass.

“Right now, we’ve had success on the commercial and small-business side; let’s look at Greater Springfield and the surrounding communities,” he told BusinessWest. “If Springfield is the hub, then look at the spokes around there and find the right places to sprinkle a few more branches to service our growing customer base there.”

As he looks ahead, Glidden isn’t expecting another record year when it comes to profitability for Liberty Bank.

Indeed, while 2023 was a very strong year, the pace of growth started to slow during the third and fourth quarters, and this trend will, in all likelihood, continue in the year ahead.

But what will also continue is implementation of the bank’s I-91 corridor strategy, one that has seen Liberty makes its first moves in the Western Mass. market and establish a foothold.

The goal for 2024 and the years to follow will be to strengthen that hold and take the brand to different communities across the region. Just where, when, and how the next steps will take place remain to be seen, but one thing is clear: Liberty’s march north is just getting started.

1350 Main Tower Boasts New Tenants — and Growing Momentum

By
Evan Plotkin shows off the new offices
Commercial Real Estate Special Coverage

Suspense Is Building

Evan Plotkin shows off the new offices

Evan Plotkin shows off the new offices of the Department of Children and Families, one of several new tenants at 1350 Main St. in Springfield.

Evan Plotkin can look out the windows of his offices on the 14th floor at 1350 Main St. and see many signs of progress, and momentum, in downtown Springfield.

Across neighboring Court Square, the renovated hotel at 31 Elm St. that had been vacant and deteriorating for years is getting set to welcome its first residential tenants. Meanwhile, the park itself is undergoing a much-anticipated, $6 million facelift.

Further south on Main Street, Plotkin, president of the real-estate company NAI Plotkin, referenced the so-called Clocktower Building and, behind it, the Colonial Block, two more mostly vacant, underutilized properties that are being targeted, like the former Court Square Hotel, for market-rate housing that is expected to bring more people, vibrancy, and opportunities for retail and hospitality businesses to the downtown.

Gesturing in a different direction, he referenced the new parking garage rapidly taking shape where the dilapidated Civic Center garage once stood. That garage and accompanying facilities are expected to provide another jolt of energy downtown, he noted, and be much more than a place to park cars.

“There’s new energy coming into the city,” he said, noting that he met with the Chicago-based group named the preferred developer of the Clocktower Building and Colonial Block project, and came away impressed with their enthusiasm for doing something in Springfield. “I think we’re really turning a corner; I think we’re at a tipping point.”

“There’s new energy coming into the city. I think we’re really turning a corner; I think we’re at a tipping point.”

For other signs of progress, momentum, and turning the proverbial corner, Plotkin doesn’t have to look outside his windows. Instead, he can get in the elevator outside his suite of offices and ride in either direction.

Going down a few floors, he can point out the new offices of the Department of Children and Families (DCF), which now occupies the seventh and eighth floors, which had long been vacant. Going down to the sixth floor, he can show off the new digs of the Committee for Public Counsel Services.

And by pushing the button for the lobby, Plotkin can show off many intriguing new developments, including Keezer’s Classic Clothing, the oldest second-hand fashion store in the country. The store, which opened in late November, is one of several new women- and Latino-owned incubator businesses now located in former bank offices transformed into what’s known as 1350 Market, a program oversen by the Latino Economic Development Corp. He also pointed to what had been a Santander Bank branch at the front of the property facing Main Street, space now being considered for a new restaurant. There’s even a new gym on the ninth floor.

Plotkin pushed all those buttons during a recent tour of 1350 Main, a building that has had several vacant or mostly vacant floors in recent years but is rapidly filling in those spaces, with the promise of more. Indeed, he said a party has expressed strong interest in the top two floors of the property, once the corporate headquarters for Bank of Boston.

These developments obviously bode well for this office tower, he noted, adding that he and his business partners recently acquired the first five floors from its previous owners and now own the entire property.

Wenting Jia, left, has partnered with Dick Robasson

Wenting Jia, left, has partnered with Dick Robasson, owner of two Keezer’s locations in Cambridge, to bring the concept to Springfield.

But they also bode well for the downtown area, he said, noting that the new tenants mentioned earlier bring a combined 400 or so workers to the central business district on a daily basis, providing a boost for restaurants and other businesses.

They also help what has been a somewhat sluggish office market in the downtown, Plotkin explained, noting that these new leases take space off the market, creating better demand for existing vacant space and potentially higher lease rates, even as questions linger concerning the long-range impacts of remote work and hybrid schedules on the overall office market.

“To have that kind of absorption in the downtown office market helps everyone in the downtown,” he said. “It’s all about supply and demand; there’s been a lot of vacancy in the downtown, and when there’s vacancy, we have to be very cost-effective and competitive in our pricing; when there’s that much space in the market, there’s downward pressure on lease rates.”

For this issue and its focus on commercial real estate, we talked at length with Plotkin, who played multiple roles on this day, from tour guide to analyst, addressing what all these developments mean and what might come next because of them.

 

Dressed for Success

As the tour stopped at Keezer’s, Plotkin first pointed out artwork crafted from recycled plastic and took a moment to look over a table loaded with vintage sweaters, a small part of a much larger collection that also includes shirts, suits and sport jackets, overcoats, shoes, designer jeans, and more.

He said his sons tell him these threads are trendy and in-demand, and he’s seen some evidence that they are correct in that assessment.

“They have one-of-a-kind items you can’t find anywhere else,” he said. “And I didn’t realize the draw of that kind of retail, but according to my kids, who are in their 20s and 30s, that’s what they love, because it is one of a kind; you can find something there that no one else has. So it’s a big draw for young people.”

The arrival of Keezer’s — this is the third store for the Cambridge-based retailer — and the other businesses in the incubator, which range from a nail salon to a business specializing in cryotherapy, is just one of many developments that have brought new vibrancy to 1350 Main, a property that has been lagging other office towers in the downtown when it comes to occupancy rates.

1350 Main

A pending deal could bring 1350 Main to 80% occupancy.

But those numbers are much improved through the absorption of more than 60,000 square feet of space, most of it through the arrival of those two state agencies mentioned above.

DCF, formerly located on High Street in the former Wesson Hospital, now occupies two full floors, seven and eight (last occupied by Unicare and vacant for more than 15 years) and a large part of the 13th floor as well.

Meanwhile, the Committee for Public Counsel Services and its Public Defender division, Children and Family Law unit, and Youth Advocacy division now occupy the entire sixth floor, space that had not been occupied since 2012.

Overall, Plotkin and his partners invested nearly $4 million to renovate those spaces and turn the lights back on, he said, adding that these investments have paid off in long-term leases (10 years in each case) from both of those agencies.

Their arrival brings overall occupancy in the building to roughly 70%, a nearly 20% jump, he said, adding that the number could go higher still if a promising lead to lease the top two floors, 16 and 17, comes to fruition.

“Arguably, it’s the nicest space in the city,” he told BusinessWest. “There are outdoor balconies — you can see Hartford from there — and it’s all furnished; there’s even a separate elevator for those two floors and a winding staircase that connects the two floors.

“And we have a very interested party that we’re talking to now that wants the entire two floors; that’s another 30,000 square feet,” he said, adding that the space was most recently occupied by Disability Management Services, which left to take a smaller footprint in Tower Square in 2022. “I have a very good feeling that this is going to work.”

 

Space Exploration

If the deal comes to fruition, that will bring the building to 80% occupancy and take 90,000 square feet of class-A space off the market in roughly a year, both impressive developments at a time when the office market has been struggling and there has been speculation, from Plotkin and others, about whether some office facilities could or should be retrofitted for other uses.

“Everyone’s looking at how you reposition office properties when you have so much vacancy coming on the market,” he said. “So these have been very important and meaningful steps for this market.”

“To have that kind of absorption in the downtown office market helps everyone in the downtown. It’s all about supply and demand; there’s been a lot of vacancy in the downtown, and when there’s vacancy, we have to be very cost-effective and competitive in our pricing; when there’s that much space in the market, there’s downward pressure on lease rates.”

And he projects that the overall commercial real-estate market will continue to fare well in 2024. Indeed, he said the market is showing positive signs in most major categories, including office, retail, and industrial.

The recent new additions at 1350 — and the promise of more — inspired Plotkin and his partners to bring valet parking back to the property.

It was initiated several years ago but rendered unnecessary at the height of COVID because few were to coming to the building — or any of the surrounding properties, for that matter.

The return of the valet service was made more necessary, he noted, by the demolition of the Civic Center parking garage, which made it necessary for tenants of 1350 Main, new and old, to park in lots further from the property.

When the new garage is open, the valet service will continue, he went on, adding that it will benefit not only his property, but others around it, including City Hall, Court Square, the MassMutual Center, and others.

Likewise, the new employees now coming to the building every day, as well as the agencies’ clients and customers of establishments like Keezer’s, should help existing and potential new businesses in the downtown, he noted, adding that the developments at 1350 Main are just part of a surge in momentum he’s seeing downtown.

Elaborating, Plotkin, who has worked downtown for more than 40 years and has long been a champion of the city and its central business district, said the needed ingredients for a successful downtown are coming into focus. These include people, places to live, things to do, and hospitality-related businesses such as restaurants and clubs.

People are perhaps the biggest ingredient, he said, adding that this means residents, workers, and visitors. Workers have been in shorter supply since COVID, he noted, and downtown businesses have certainly felt the pinch.

“That’s why what’s happening here at 1350 Main is so exciting to me,” he said. “All those new employees will patronize restaurants, businesses, banks, and stores. It’s an opportunity for a lot of good things to happen.”

Or more good things, to be specific.

Lee Builds on Status as Gateway to the Berkshires

By
Kathy DeVarennes
Community Spotlight Special Coverage

Community Spotlight

Kathy DeVarennes

Kathy DeVarennes says there is a downside to Lee’s white-hot housing market: a shortage of affordable homes for working-class families.

 

Chris Brittain says the report wasn’t exactly surprising, but it was still quite eye-opening.

Indeed, by the time the Boston Business Journal listed Lee as one of the three hottest housing markets in the Bay State last August — along with Edgartown on Martha’s Vineyard and the gateway city of Lowell — most in this community didn’t need to be told just how hot things were in town.

They already had plenty of direct or anecdotal evidence to that effect.

“People have been buying homes for well above the asking price,” said Brittain, Lee’s town administrator, noting that the median home value in Lee was $256,000 five years ago, $370,000 a little more than a year ago, and nearly $400,000 last June, one of the largest upward swings in the state over that time.

He said the surging prices are in part a reflection of the run-up in value of vacation and second homes, but also the product of supply and demand; there is limited supply, and demand has been soaring, in Lee and most other Berkshires communities, in the wake of COVID and the growing popularity of remote work. He speculates that Lee appears at the very top of the list because home values are generally lower — although the gap is certainly closing — than in neighboring communities such as Lenox and Stockbridge, which are also hot markets.

Surging home prices are not the only intriguing development in Lee, said Brittain, noting some real headway in the long-anticipated, scaled-down project known as Eagle Mill, which involves new construction and conversion of some of the town’s many former paper mills into a mixed-use development featuring housing, retail, and a restaurant.

There’s also movement with plans to create a new public-safety facility downtown, on the site formerly occupied by the Department of Public Works, which is moving to a commercial property on Route 202 that the town has acquired. The price tag for the various phases of the initiative is roughly $37 million, he said, adding that the DPW will likely be moved in the spring, with demolition of those properties to follow, and construction of the new public-safety facility to likely commence in the spring of 2025.

“We started to see people wanting to move to move rural areas. During COVID and right after it, I knew of people who would put their house up for sale, and by the end of the day, they had five offers over what they were asking, and people hadn’t even come to look at the house; they just wanted to get out of the city.”

Meanwhile, there was more talk about how to celebrate the town’s 250th birthday, coming up in 2027.

And there is continued bounceback from the difficult COVID years, with travel to Lee and other Berkshires communities returning, and many different types of hospitality-related businesses doing as well as, if not even better than, they were before the pandemic, said Kathy DeVarennes, director of the Lee Chamber of Commerce, which recently celebrated its own milestone — 100 years in operation.

She said the business community in Lee is large, diverse, and resilient, with ventures ranging from Prime Outlets Lee, just off the Mass Pike exit into town, to High Lawn Farm, a third-generation dairy farm and creamery approaching its own centennial that has become a real destination for visitors, to an eclectic mix of businesses along Main Street that give it a unique flavor.

Businesses like the Starving Artist Café & Creperie, which offers organic, vegetarian, vegan, and gluten-free menu options for breakfast and lunch.

Owner Emmy Davis, who opened the café in 2012, said one of its traditions, and main attractions, is a Sunday brunch served all day. During this time of year, there are some travelers coming to brunch, as well as some with second homes in town coming in for the weekend, but it’s mostly locals.

“During the summer, though, it’s crazy; on Sundays in the summer, there’s often a line out the door,” she said, adding that visitors will stop in on their way to one of the many attractions only a few miles away, from Jacob’s Pillow in Becket to Tanglewood in Lenox. “There’s a lot going on constantly, so there’s a lot more people.”

Lee’s iconic downtown

Lee’s iconic downtown, which boasts an eclectic mix of stores and restaurants, continues its comeback from COVID.

And brunch at the Starving Artist provides an effective snapshot of what businesses generally see and when they see it, she said, adding that travelers pass through or stay at some of the many inns and hotels in the community all year round, but summer and fall are obviously the busiest times.

For this latest installment of its Community Spotlight series, BusinessWest looks at how all of these factors are coming together to create even greater vibrancy in the community known as the Gateway to the Berkshires.

 

Staying Power

When Bob Healey and his wife, Olia, started talking about buying the historic bed and breakfast on Main Street in Lee, the one created from a schoolhouse built in 1885, some thought they were … well, “crazy,” Bob said.

After all, they were both just 23 years old. Meanwhile, the year was 2009, and the region was still trying to dig out from what became known as the Great Recession.

“It certainly wasn’t the best time to be thinking about doing something like this,” he said, adding quickly that he and Olia believed in the property — and they believed in themselves. And they found a lending institution, Lee Bank, to believe in them as well.

As a result, they’ve been able to write more history for a property that was barely saved from the wrecking ball and then successfully moved one block — a feat many didn’t believe was possible — and is now an important part of Lee’s iconic downtown.

They call it the Chambery Inn, named after the town in France from which five nuns were sent to staff the school, and it has become a fixture, with 10 rooms, many featuring original blackboards from its days as a school.

“We have these city people coming in and paying cash for homes that used to be the homes of working-class families that sent children to our schools. Prices have skyrocketed, and that makes it more difficult for young families to find affordable housing to purchase.”

Healey, like Davis, said downtown is thriving at present, making an almost full recovery from the traumatic COVID years.

“We have an absolutely amazing Main Street,” he said. “It’s a town of 6,000 people, and we have more than 60 eateries. As the Gateway to the Berkshires, the location is really key, and it’s kind of an iconic American Main Street.

The comeback, and continued evolution, of Main Street is one of the major developing stories in Lee, with the other being the housing market, which might have cooled off a little, but still remains quite hot.

“COVID had a lot to do with it,” said Brittain, who had served the town in several different capacities over the years, including stints as moderator and town clerk, before becoming interim town administrator in 2021 and then losing the interim tag. “That’s when we started to see people wanting to move to move rural areas. During COVID and right after it, I knew of people who would put their house up for sale, and by the end of the day, they had five offers over what they were asking, and people hadn’t even come to look at the house; they just wanted to get out of the city.”

The surge, which is still ongoing, has been good for sellers, but there is certainly a downside to Lee’s housing boom, said both Brittain and DeVarennes, noting that it’s now much harder to find something that would be considered affordable in town.

A recently retired school teacher, DeVarennes said the lack of affordable housing can be seen in decreasing enrollment in the community’s schools.

“We have these city people coming in and paying cash for homes that used to be the homes of working-class families that sent children to our schools,” she said. “Prices have skyrocketed, and that makes it more difficult for young families to find affordable housing to purchase.”

The Eagle Mill project will create 128 units of market-rate housing, but there is a definite need for more housing, especially in the affordable category.

Lee at a glance

Year Incorporated: 1777
Population: 5,788
Area: 27 square miles
County: Berkshire
Residential Tax Rate: $11.83
Commercial Tax Rate: $11.83
Median Household Income: $41,566
Median Family Income: $49,630
Type of Government: Representative Town Meeting
Largest Employers: Lee Premium Outlets; Onyx Specialty Papers; the Landing at Laurel Lake; Oak n’ Spruce Resort in the Berkshires; Big Y
* Latest information available

“It’s a subject that comes up a lot in town,” said Brittain, noting that many of the younger professionals and blue-collar workers in Lee are increasingly finding themselves priced out and with limited options if they desire to stay in this community.

 

Getting Down to Business

But while it’s becoming more difficult to live in Lee, the growing number and variety of businesses — and that includes a new Starbucks in the site of a former Friendly’s near the turnpike exit — make it an ever-more inviting place to visit, said those we spoke with.

Foot traffic may not have fully rebounded to pre-pandemic levels, said DeVarennes, but the community, with its location just off exit 10, certainly lives up to the Gateway nickname. Indeed, people pass through on their way to better-known destinations like Stockbridge and Lenox, but they also often stop and stay — for a few hours or a few days.

And there is plenty to see and do, such as High Lawn Farm, where families can see a dairy farm in operation and also get ice cream and buy butter, cheeses, and other products.

“If you go on a weekend during the summer, it’s packed,” DeVarennes said. “It’s a wonderful place and a real destination.”

Meanwhile, the town’s iconic downtown continues to thrive, she added, noting that it has a deep mix of stores and is easily walkable.

“There are quite a few good restaurants and businesses,” she said, adding that there is great stability — many businesses have been there for decades — but also a fairly steady stream of new and intriguing businesses.

That includes a new yoga studio that will soon open its doors and a comic-book store recently opened by Davis’s husband, Ryan.

“Since we’ve opened, a lot of people have been psyched because there’s nothing in the Berkshires like it — you have to go to Northampton to find something like this,” she said, adding that the store, like many of the businesses on Main Street, appeals to local residents, but becomes part of the draw for visitors.

Healey agreed.

“It’s a very nice Main Street to walk, but it’s also a Main Street where you won’t find a lot of franchises and such,” he said. “It’s really mom-and-pops with a lot of character.”

Added Davis, “we have a great little community of downtown businesses — everyone supports one another. And the more the merrier in downtown; more businesses bring more people to the area to hang out.”

Over the years, Lee has seen a steady source of reasons to come and hang out. And live, year-round or during the summer and on weekends. And tackle remote work. And start a business.

All of that makes it a draw — and, now, one of the hottest real-estate markets in the state.

Architecture Firms

By
Architecture

Architecture Firms

Ranked by the Number of Registered Architects

 

Company

Registered Architects

Total Employees

Year Formed

Top Local Executive

Type of work performed
             

1

Dietz & Company architects Inc.

55 Frank B. Murray St., Suite 201, Springfield, MA 01103

(413) 733-6798; www.dietzarch.com

8

32

1985

Kerry Dietz

Commercial; institutional; housing; education; healthcare; government offices; historic preservation; LEED design services; high-performance buildings; senior centers; senior housing

2

Kuhn Riddle Architects inc.

28 Amity St., Suite 2B, Amherst, MA 01002

(413) 259-1630; www.kuhnriddle.com

8

18

1988

Aelan Tierney

Jonathan Salvon

Charles Roberts

Commercial; educational; historical; institutional; interior design; religious; residential (single-family, multi-family, affordable, market-rate, high-end); retail; sustainable design

3

Hill-Engineers Architects Planners Inc.

50 Depot St., Dalton, MA 01226; (413) 684-0925

44 Spring St., Adams, MA 01220; (413) 0743-0013

www.hillengineers.com

6

40

1949

Jeffrey Noble

New construction and renovation projects for institutional, industrial, commercial, educational, civic, recreational, and residential markets

4

Caolo & Bieniek Associates Inc.

521 East St., Chicopee, MA 01020

(413) 594-2800; www.cbaarchitects.net

5

11

1955

Curtis Edgin

James Hanifan

Bertram Gardner

Educational; commercial; public facilities (police and fire facilities, libraries, senior centers); historic preservation; sustainable design; interior design; healthcare; housing

4

Jones Whitsett Architects Inc.

308 Main St., Greenfield, MA 01301

(413) 773-5551; www.joneswhitsett.com

5

11

1984

Dorie Brooks

Kristian Whitsett

Educational; commercial; public municipal buildings (town halls, libraries, senior centers); historic preservation; religious facilities; energy-efficient buildings; residential

6

Burr and McCallum Architects

720 Main St., Williamstown, MA 01267

(413) 458-2121; www.burrandmccallum.com

4

5

1982

Franklin Andrus Burr

Ann Kidston McCallum

Residential; institutional; commercial

6

C&H Architects

49 South Pleasant St., 301, Amherst, MA 01002

(413) 549-3616; www.candharchitects.com

4

9

1989

Tom Hartman

Serves residential and institutional clients with architecture designed for resilience and renewability

6

Juster Pope Frazier Architects

82 North St., Northampton, MA 01060

(413) 586-1600; www.justerpopefrazier.com

4

5

1968

Kevin Chrobak

Residential; corporate; educational; retail; healthcare; religious; cultural

6

Timothy Murphy Architects

380 High St., Holyoke, MA 01040

(413) 532-7464; www.murphyarch.com

4

5

1981

Timothy Murphy

Commercial; educational; public/municipal buildings; residential; historical

10

Architectural Insights

3 Converse St., Suite 201, Palmer, MA 01069

(413) 283-2553; www.architectural-insights.com

3

5

1988

Lawrence Tuttle

Robert Haveles

Public- and private-sector work; continued and repeat client work in professional office design, medical-office, hospital, and laboratory work; multi-family housing and private residential; light industrial and warehouse construction; retail and hospitality development

10

Clark & Green Inc.

113 Bridge St., Great Barrington, MA 01230

(413) 528-5180; www.clarkandgreen.com

3

6

1988

Stephan Green

Residential; cultural; commercial; retail; educational

10

Gillen Collaborative Architects

409 Main St., Amherst, MA 01002

(413) 253-2529; www.gillencollaborativearchitects.com

3

2

1974

John Krifka

Carol Vincze

Commercial; residential; institutional; planning; studies

10

HAI Architecture

64 Gothic St., Suite 1, Northampton, MA 01060

(413) 585-1512; www.haiarchitecture.com

3

10

1976

Richard Katsanos

Don Hafner

Healthcare; educational; commercial; planning; interior design; residential

10

Studio One Inc.

38 Elm St., Westfield, MA 01085

(413) 733-7332; www.studioonearchitects.com

3

5

1974

Peter Zorzi

Greg Zorzi

Educational; healthcare; multi-family housing; assisted-living facilities; renovations; historic preservation; senior housing

15

Architecture EL Inc.

264 North Main St., Suite 2

East Longmeadow, MA 01028

(413) 525-9700; www.architectureel.com

2

7

2008

Kevin

Rothschild-Shea

ADA standards for accessible design; commercial; industrial; historic; multi-family residential; single-family residential; religious; child care; historic preservation and renovations; interior design

15

Jablonski DeVriese Architects

22 Green Lane, Springfield, MA 01107

(413) 747-5285; www.jdarchitects.com

2

2

1995

Stephen Jablonski

Brian DeVriese

Historical renovations and additions; colleges; museums; libraries; interior design

17

Fitch Architecture & Community Design Inc.

110 Pulpit Hill Road, Amherst, MA 01002

(413) 549-5799; www.facdarchitects.com

1

3

2000

Laura Fitch

Sustainable and socially responsible design, including zero-net-energy homes; educational facilities; commercial buildings; institutional; deep-energy retrofits; co-housing communities

17

Mount Vernon Group Architects

35 Center St., Suite 210, Chicopee, MA 01013

(413) 592-9700; www.mvgarchitects.com

1

4

1954

Chris LeBlanc

Wide range of public and private work, including commercial and education; three offices statewide with 15 total architects and 35 total employees

17

Tessier Associates Inc.

48 Ridgecrest Dr., Westfield, MA 01085

(413) 736-5857; www.tessierarchitects.com

1

1

1923

Robert Stevens

Colleges; banks; churches; schools; industrial buildings; assisted-living facilities; medical facilities

For Agawam, It’s Back to the Future

By
Chris Johnson
Community Spotlight

Community Spotlight

Chris Johnson

Chris Johnson will be returning to the mayor’s office in January 24 years after serving as the city’s first mayor.

Chris Johnson was elected Agawam’s first mayor back in November 1989.

He then served five two-year terms before returning to his real-estate law practice in 2000. In the years that followed, he stayed active and involved in the community where he was born and raised, serving several terms on the City Council, where he likely would have stayed had Mayor William Sapelli, former superintendent of schools in this city that calls itself a town, declined the opportunity to seek another term.

With that decision, and with several key issues facing this community — especially movement toward renovating or, preferably (in the view of most involved) replacing its high school — Johnson sought a return to the corner office. And last month, voters gave him a hard-earned victory over his challenger, fellow City Councilor Cecelia Calabrese.

“They say that once it’s in your blood, it’s hard to get it out,” Johnson said. “I care deeply about the community I grew up in and raised my family in, and we have a few significant issues that we’re facing over the next year or two. And I wanted to make sure they got a fair shake.”

Indeed, Johnson told BusinessWest that, as he returns to City Hall, there are several matters that will have his full attention — everything from a pressing need to create more housing in several categories to bringing roughly 25 years of work to create recreational facilities at the former Tuckahoe Turf Farm in Feeding Hills to a sucessful conclusion, to efforts to redevelop the former Games and Lanes property on Walnut Street Extension.

“I work closely with the mayors, as well as the state senators and representatives, to be sure that we’re providing a platform for the small businesses in Agawam, and be that middle person to ensure that the businesses are able to have their voices heard.”

But it is the high school that will be priority one, he said, adding that, after a few failed attempts to gain traction from the Massachusetts School Building Authority (MSBA), the community is moving closer to getting into the pipeline for state funding for a new school, and city residents will likely have the opportunity to vote on the matter as early as next spring.

In his view, building a new high school, even one with a projected $230 million price tag, will be more practical and cost-effective than trying to again renovate and add onto the current structure, built in the mid-’50s.

Meanwhile, a new high school will certainly help the community effectively compete with neighboring cities and towns for young professionals and businesses alike.

“It’s been 50 years since we’ve built a school,” he said, referencing the middle school, built in 1973. “We’ve gone a long time without making a major investment. I’ve been in the real-estate world since I left the mayor’s office 24 years ago; I’m a real-estate attorney, and I have lots of friends who are Realtors and brokers, and they all say that, when it comes to new families moving into the area, one of the first things they want to know is what the school system is like.”

Robin Wozniak

Robin Wozniak stands in front of the new Starbucks set to open in Agawam.

Robin Wozniak, president of the West of the River Chamber of Commerce, who serves on the committee studying options for the high school, agreed. “It’s imperative that we keep up with technology and provide facilities that are state-of-the-art,” she said. “We have to remain competitive with our neighbors.”

Beyond the high-school project are other pressing issues in town, as well as signs of progress, she said, noting, among them, the highly anticipated opening of a Starbucks in a lot at the corner of Main and Suffield streets, being developed by the Colvest Group. The store is in the final stages of construction, she said, and it will be an important addition to that section of town just over the Morgan-Sullivan Bridge from West Springfield.

With the acquistion by Colvest of a small parcel on the edge of the neighboring Town Hall parking lot, there is room for additional development on the site, Wozniak said, noting that an urgent-care clinic and a fast-food restaurant have been among the rumored possibilities.

Meanwhile, she’s looking forward to working with Johnson to bolster the chamber’s role as a liaison between City Hall and the business community, making sure the wants and needs of the former are understood by the latter.

“We’re trying to identify some parcels for some creative housing concepts to try to see if we can get some more affordable-housing opportunities, if not subsidized affordable-housing opportunities.”

“I work closely with the mayors, as well as the state senators and representatives, to be sure that we’re providing a platform for the small businesses in Agawam, and be that middle person to ensure that the businesses are able to have their voices heard,” she said.

For this installment of its Community Spotlight series, BusinessWest turns the lens on Agawam, a community looking to transfer some unresolved issues to the proverbial done pile in the months and years to come.

Room for Improvement

As he talked about the current high school, a facility he attended in the ’70s and knows from many different vantage points, Johnson compared it to a “beautiful ’55 Chevy that we kept in really good condition.”

In other words, it still purrs, and it’s still somewhat easy on the eyes. But it is simply not suited for these times.

“It’s going to need significant work over the next five to 15 years, and no matter how much work you do to it, it’s not cost-effective to turn it into a new, modern vehicle,” he said, adding that the relatively good condition of the current high school actually hurt the town to some extent because the MSBA put other communities with more pressing needs ahead of Agawam in the competition for school-building funds.

But even the state has come around to the notion that the building needs to be replaced, said Johnson, adding that the MSBA board of directors recently voted to move the project to what’s known as schematic design.

The state would likely pick up $100 million of the total price tag, leaving the community to come up with the rest, he said, noting that a debt-exclusion override — something the town has never before sought from the voters — would likely be needed. And Johnson, like other elected officials, is leaning strongly toward putting the matter on the ballot.

But while the high school is the predominent issue facing the community, there are others, he noted, citing the ongoing work to convert the former HUB Insurance building on Suffield Street into a new police station, as well as continued progress on work to convert the former Tuckahoe Turf Farm, nearly 300 acres the town has owned for more than 20 years, into passive recreation.

“The other need is at the other end of the spectrum, the young people who have grown up in Agawam; they’re young adults out in the work world trying to find housing opportunities so they can stay in Agawam.”

This includes hiking paths, picnic areas, and other facilities, he said, noting that, roughly a year ago, town leaders approved the borrowing of nearly $4 million to build a road, repair the dam and culverts on the property, and create a parking lot.

That work continues, said Johnson, adding that funding has also been received from the state, as well as from Tennessee Gas, which directed funds it has earmarked for conversation projects to work on the dam and pond on the property.

What the initiative needs is a name, he noted, as it has always been referred to simply as the ‘former Tuckahoe site,’ and the town reconizes the need for something new and fresh. “We’re working on it,” he added.

Likewise, this community, like most in the region, is working to address an ongoing housing shortage.

“We’re trying to identify some parcels for some creative housing concepts to try to see if we can get some more affordable-housing opportunities, if not subsidized affordable-housing opportunities,” he explained.

Agawam at a Glance

Year Incorporated: 1855
Population: 28,692
Area: 24.2 square miles
County: Hampden
Residential Tax Rate: $14.54
Commercial Tax Rate: $27.54
Median Household Income: $49,390
Family Household Income: $59,088
Type of government: Mayor; City Council
Largest Employers: OMG Inc., Agawam Public Schools, Six Flags New England
* Latest information available

“We have two glaring needs, and they’re not easy to address, unfortunately. One is seniors who have raised families in Agawam; they’re living in single-family houses, and they want that downsizing opportunity,” he went on, noting that there is one over-55 condomimum project wrapping up, but the units come with price tags above what many can afford. “The other need is at the other end of the spectrum, the young people who have grown up in Agawam; they’re young adults out in the work world trying to find housing opportunities so they can stay in Agawam.”

As for the former Games and Lanes property, long an eyesore and an environmental nightmare, and then a vacant lot used only for parking at Big E time, Johnson said at least one developer has expressed interest.

The broader Walnut Street Extension corridor was rezoned to allow mixed use, he noted, adding that the preferred reuse of the Games and Lanes property would be development that entailed retail and office space on the ground floor and residential units on the floors above.

 

Bottom Line

Much has happened in this town since Johnson last occupied the corner office at the start of this century.

But some issues, including the high school, housing, and the Tuckahoe Turf Farm, were talked about the first time he patrolled Town Hall.

He ran again to bring resolution to those issues and “give them a fair shake,” as he put it, and as he prepares to return to office, there is an expectation of real progress on these and many other fronts.

 

MCLA Builds Programs to Meet Industry Needs

By
The Feigenbaum Center for Science and Innovation
Professional Development

Professional Development

 

It’s called the MCLA Leadership Academy.

This is a program designed to help those with aspirations to be a school principal or superintendent take the next steps in their career in education. It blends academic content with practical skill and knowledge development. As students earn 31 credits, they engage in activities that include reading, writing, discussion, group projects, case studies, simulations, lectures by prominent thinkers, project-based tasks, fieldwork, and more.

“This is an area that school district leaders have identified as a critical need — they’re losing so many principals, assistant principals, and superintendents to retirement,” said Joshua Mendel, associate dean of Graduate and Continuing Education for Partnerships and Programs at Massachusetts College of Liberal Arts in North Adams, adding that this is one of many initiatives at MCLA that fall into the broad realm of professional development — and also address an identified, and often serious, need for trained professionals.

Others include everything from programs for those desiring careers in ‘outdoor leadership’ — managing a ski resort, perhaps — to those seeking to become nurses and radiologists; from teachers needing licensure to would-be entrepreneurs.

Joshua Mendel

Joshua Mendel

“This is an area that school district leaders have identified as a critical need — they’re losing so many principals, assistant principals, and superintendents to retirement.”

Summing up this ever-growing, always-evolving portfolio of programs, Mendel said they’ve been designed with several goals in mind, but primarily to address the needs of employers across several sectors, all of whom are challenged to find sufficient talent in this difficult job market, and to help individuals find not simply jobs, but careers, or take the next big step in their career.

For this, the latest installment of its series on professional-development programs and initiatives in the region, we visit MCLA and examine the many offerings it has developed over the years and continues to hone to meet the changing needs of employers and job seekers alike.

 

Courses of Action

Mendel said the graduate and continuing-education programs at MCLA essentially focus on needs and opportunities identified by the Berkshire Skills Cabinet, led by MassHire Berkshire, Berkshire Community College, and 1Berkshire and created with the goal of addressing the skills gap by bringing together regional teams of educators, workforce entities, and economic-development leaders to create a blueprint for growth strategies.

“Through the Skills Cabinet, four areas have been identified as having critical growth potential and need,” he said, listing healthcare, education, tourism, and advanced technology. “These are the areas that are seeing a major increase in interest from outside corporations coming into the Berkshires, but are also our strengths when it comes to economic development in the region.”

And these are the areas that MCLA, the public, four-year college in the Berkshires, is focusing on primarily, he said, adding that the school not only serves residents of the Berkshires, but draws students from outside the area, with some of them staying in the region after graduation and starting careers there.

In healthcare, initiatives include the school’s new bachelor’s degree in nursing program that started last fall, as well as a degree program in radiologic technology, a program that resulted from the closure of Southern Vermont College and MCLA stepping in to become that school’s official teach-out partner to enable students to complete their degrees.

MCLA now offers the program, and it is helping to meet a recognized need within the community for such professionals, said Mendel, adding that interest in the program is strong and continues to grow.

The same is true for many of the programs in education, he said, noting that MCLA is helping to meet a critical need for teachers resulting from the retirement of Baby Boomers and other factors.

Elaborating, he said there are many now teaching under emergency licensure, which enables them to teach without a master’s degree. However, this is set to expire within the next year. MCLA has strategically positioned itself to address this situation through a fully online master’s program now being ramped up, with some students starting in the spring and more expected in the summer and fall.

Meanwhile, MCLA has created another new program, a +1 (bachelor’s degree and online master of education degree) program designed as an accelerated pathway for those students who seek to earn a teaching license and undergraduate degree, a second initial license in moderate disabilities, and a master’s degree in education.

“This was an area that was introduced to by the superintendents of this region at our superintendents’ roundtable,” Mendel noted. “They said, ‘we have such a demand for teachers with a background in moderate disabilities that we’ll hire 100% of the students that come out with that discipline.”

As for the Leadership Academy, launched 20 years ago, it enables students to earn their principal or superintendent licensure in Massachusetts, New York, or Vermont.

“It’s a robust program,” Mendel said, adding that about 40 students enrolled this past year, a number that could increase following the closing of the College of Saint Rose, which also has a leadership-academy program for New York’s Capital District.

A third sector that has become a focus at MCLA is tourism, an all-important sector in the Berkshires, one that has been a steady supplier of jobs and one also hamstrung in many ways by the ongoing workforce crisis. Many of the school’s MBA students enter this field, he said, adding that MCLA has created something somewhat unique, an outdoor leadership program that will be a minor within the environmental studies program starting next fall.

“There will courses in environmental studies and courses in leadership that will help students embrace the opportunities they have in the Berkshires for outdoor education and outdoor leadership,” he said, adding that there are career opportunities at ski areas, hiking programs, and related fields.

The fourth area of focus is advanced technologies, specifically a partnership with the Berkshire Innovation Center in Pittsfield, whereby the school’s MBA program is run out of that facility.

“The Innovation Center is doing an amazing job of bringing in entrepreneurs, industry leaders, and advanced technologies,” Mendel explained. “So we’ve created a partnership program with them; our MBA program meets in the cohort model, one class at a time but two classes a semester for 18 months straight, and those classes are both online and in-person, a hybrid model.

“And when they meet in person, they meet at the Innovation Center,” he went on. “The Innovation Center allows our students to meet with local CEOs that are doing amazing things in the area, it allows our students to do research with their companies and organizations, and it’s enabling them to do capstone projects with these new entrepreneurs and learning about new technologies. It’s about elevating our MBA program to focus on the critical needs within these new technology businesses.”

 

Bottom Line

There are many other new initiatives as well, from a minor in entrepreneurship within the business program to address a surge in interest in starting new businesses to a minor in data science, to an Early College program created in conjunction with Drury High School in North Adams that enables students to earn up to 30 college credits before they graduate from high school.

The common denominator with all these programs is a desire to meet those needs identified by employers and economic-development leaders by creating pathways, Mendel said, and then getting individuals on those paths.

Strategies for Onboarding New Employees in the New Year

By Contributor
Employment

Starting Fresh

By John S. Gannon, Esq.

 

The new year often brings new challenges to your business. But it also brings new opportunities. Picture this scenario: after months of searching, you have just recruited a person who seems like the perfect fit for a position you have been struggling to fill.

While this is certainly good news, there is more heavy lifting to be done. Employers must create and implement an effective onboarding experience that will help improve employee retention and increase job satisfaction. Here a few tips and suggestions that can create positive and effective onboarding experience for new hires.

 

Have a Plan

As with most things in the workplace, employers should have a carefully considered plan in place when it comes to onboarding new employees. This means devising an onboarding strategy aimed at ensuring new hires get the most out of the introductory period. Leaders from different departments should be included in the overall onboarding strategy to make sure important aspects of mission statements, strategic plans, and workplace culture are effectively communicated to new employees.

Remember that onboarding is more than a one or two-day orientation, and a successful onboarding plan takes a true team effort.

 

Ensure Legal Compliance

New hires also come with new legal obligations. For instance, all new employees must complete a form I-9, and employers are required to review the proper employment authorization documents to establish employee identity and authorization to work in the U.S.

Employees should also know what their compensation and benefits package will look like. And, depending on the size of the business, distribution of polices on benefits like sick time and paid family leave should be part of the onboarding process.

John Gannon

John Gannon

“Leaders from different departments should be included in the overall onboarding strategy to make sure important aspects of mission statements, strategic plans, and workplace culture are effectively communicated to new employees.”

Finally, although not legally required in Massachusetts, employers should strongly consider conducting education and training programs on preventing harassment and discrimination in the workplace. Keep in mind that this type of training may be required as part of the onboarding process if you have employees working outside Massachusetts.

 

Protect Confidential Information and Trade Secrets

Sometimes, what you don’t know can hurt you the most. Unfortunately, bringing on new employees can put businesses at risk of unwanted access to sensitive trade secrets and other confidential business information of your competitors.

For instance, suppose you bring on a new sales executive who has worked for one of your competitors for the last decade. What if that person brings spreadsheets or other documents with sensitive information about his former employer’s top accounts? If handled improperly, this could expose the new employer to legal risk for misappropriation of trade secrets and unlawful inference with business relationships. Similarly, if new employees try to recruit their former colleagues or contact former clients to drum up business in violation of anti-solicitation provisions, this could create legal risk for the new employer.

On the other hand, businesses need to take steps to protect their own confidential business information from disclosure into competitors’ hands. This can (and should) be addressed during the onboarding stage. First, new employees should be instructed in writing not to take any documents, data, or other sensitive business information with them when they leave their former employer. In addition, new employees who have access to your confidential information should be required to sign agreements confirming they will not take or otherwise misappropriate your sensitive data.

These are commonly referred to as non-disclosure agreements, or NDAs. If your employees have access to sensitive or confidential business information as part of their jobs, and you do not have up-to-date NDAs in place, consult with labor or employment counsel with experience in trade-secret protection strategies.

 

Consider Using Mandatory Dispute Resolution Agreements

In a perfect world, every employment relationship would be smooth and harmonious. However, there are times when employees and employers disagree. In most instances, these differences can be resolved through internal dialogue without resorting to outside resources, such as lawyers and court systems. But, of course, disputes do arise where internal dialogue does not produce a satisfactory result.

One way to avoid costly employment litigation when disputes cannot be resolved internally is through the use of alternate dispute resolution (ADR) agreements, which call for private mandatory mediation and/or arbitration in lieu of court.

Mandatory ADR agreements have a number of practical advantages for employers. First and foremost, mediation/arbitration is typically both less expensive and speedier than a jury trial. Alternate dispute resolution can also shield businesses from unwanted publicity associated with public lawsuits. This is because mediation and/or arbitration involve private hearings that typically do not reach media outlets.

If ADR agreements sound like they might work for your business, they definitely should be part of your onboarding plan.

 

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, specializing in employment law and regularly counseling employers on compliance with state and federal employment laws, trade-secret protection, and strategies for alternate dispute resolution; (413) 737-4753; [email protected]

It’s About Quality of Life at Power Paws Canine Rehabilitation

By
Melinda Harris
Healthcare News

Gone to the Dogs

Melinda Harris has always wanted to work with animals.

“That was never a question in my mind,” she said. “My grandfather had dogs and birds and everything else. My mom always joked that I got it from him because he was the animal lover. I had dogs and cats growing up, and as soon as I was in high school and I had the option of taking physics or doing an internship at a veterinary hospital, well, guess which one I picked?”

She’s had a winding path in animal care since then, all of which led her to the culmination of a dream: opening Power Paws Canine Rehabilitation in Granby last spring.

“I was booked up for a month solid before I even opened the doors,” she told BusinessWest. “And I have never not been booked less than two or three weeks out since then. So it’s been really busy.”

Harris’s canine patients have ranged in age from 6 months to 18 years, and they’re brought in for a variety of reasons.

“It’s definitely a mix. There are different kinds of knee surgeries out there, and I’ll see dogs that have had any one of them. I have dogs that come in that are trying to avoid knee surgery, so we’re trying to build up and strengthen that leg so they don’t need to go forward with surgery. I’ve had hip surgeries, and I’ve had geriatric dogs that come in for conditioning and to keep their strength up. I’ve had neurologic cases like strokes.

“And I’ve had a few agility dogs and working dogs that want to keep their strength up so that they can compete at a high level,” she continued. “I have a couple of FEMA dogs, search and rescue, that come in, and they’re very strong. So they go in the underwater treadmill and run for 20 minutes, and it helps keep them strong.”

“I was booked up for a month solid before I even opened the doors. And I have never not been booked less than two or three weeks out since then. So it’s been really busy.”

Harris offers a series of treatment packages targeted to each patient’s needs, starting with an in-depth consultation and plan, which may include a combination of exercise equipment, an underwater treadmill, and laser therapy.

“Almost every dog, unless they’re coming in for general conditioning, will get a laser treatment on whatever is bothering them,” she said. “And then we’ll do different exercises depending on what the condition requires; they’re beneficial for so many different things. And I would say 90% of the clients will also use the underwater treadmill; that has been fantastic for a lot of dogs.”

The device, which offers different levels of resistance through both the moving tread and the water, isn’t exactly the fun part of the session.

“People ask me, ‘do you have a hard time getting them to go in there? Do they fight you?’ I mean, some of them get a little upset when they first go in. They might try to climb out or splash, but I haven’t had a dog yet that I haven’t been able to train to accept the treadmill.”

Part of Harris’s training and expertise, obviously, has to do with how she handles the dogs.

“Generally speaking, my rule of thumb is, I don’t force a dog to do anything,” she explained. “So if a dog doesn’t want to do something, we’ll find a different way to do it, or we’ll skip that altogether. So maybe the first or second visit, we don’t go in the treadmill. Or maybe we throw some cookies in, let them go in and sniff it out, and when they seem more comfortable with me, then we’ll go in the treadmill and see what the dog is willing to do.

Melinda Harris

Melinda Harris stands beside the water treadmill at Power Paws.

“But I don’t muzzle dogs, and I don’t force them to do things, because we have to have a working relationship for weeks and months, and if they’re afraid of me, it’s not going to work,” she went on. “So everything is very treat-based, play-based — and the dogs are absolutely looking forward to running in the door when they get here.”

 

Animal Attraction

It helps that Harris has loved animals all her life. After high school, she took a year off, working at a pet store and as a groomer — “I’ve always been working with animals, even if it’s not in the veterinary setting” — and then went back to school, earning a certification in veterinary science in 2003.

“I was a veterinary nurse for about six years, working at Southwick Animal Hospital,” she recalled. “The owner/doctor there had another doctor coming in and doing orthopedic surgeries, and she said, ‘why don’t you check out this class on rehab and see if you like it?’ So I said, ‘sure.’”

As it turned out, Harris loved the class and decided to seek certification in that specialty, so she enrolled a program at the University of Tennessee, which, beyond the classwork, involved a 200-hour internship, six case studies, practical work, and more, and in 2009, she became a certified canine rehabilitation practitioner.

Three years later, she took a job with Riverbend Animal Hospital in Hadley, working for Dr. David Thomson, one of the region’s foremost animal surgeons. Her initial role there was in wellness and as a technician, but a few months in, she began doing rehab work.

“He really let me do what I needed to do for rehab; I set all the programs up, I did all the post-op care, all that kind of stuff, and started making connections with local veterinarians, and they would start referring some of their patients over to me as well, outside of Dr. Thomson,” she said. “And after doing that for about six years or so, I thought, this is a really good business model.”

“Everything is very treat-based, play-based — and the dogs are absolutely looking forward to running in the door when they get here.”

She also knew there weren’t many full-service canine rehabilitation practices in the region, so she could fill a need by opening her own. But at first, she struggled to find the right location, one that offered her the space and amenities she needed at an affordable price.

“And right about this time last year, I was driving by, and this place was for lease. I thought, it’s a really good standalone building that could be perfect for rehab. So I called up the number on the sign, I got right in, and I fell in love with it instantly. I knew this was absolutely the space that I want to do rehab in.”

After a few months building it out with new walls and flooring, paint, and other renovations, Harris opened Power Paws on April 3, and she hasn’t regretted the move once. “It’s been a crazy year. After nine months, it’s just as successful as I thought it was going to be.”

The job is one of constant learning and evolution, too.

For example, “laser therapy used to be much different when I first went to school for it. It was much lower power, there wasn’t a lot of science behind it, and a lot of research since then has gone into what wavelengths and joules and energy are most effective for different things. And now I can just put in a condition, the size of the dog, the color of the dog, and it gives me exactly what I need, which is really helpful. So that’s definitely come a long way.”

In addition, she explained, shockwave treatments have long been helpful for tendon and ligament injuries, but the dogs had to be fully anesthetized because it was painful and very loud, so it wasn’t cost-effective for a lot of people. But now, mobile units are available that don’t require anesthesia. “Someday, I’ll get that here — I don’t have it quite yet — but that’s been a big change for sure.”

Beyond technology, Harris also attends continuing-education classes in rehab each year, while drawing on ideas from other sources as well.

“I’m always learning new exercises that I can do with dogs because there are so many smart people in the world that have put together videos and blogs, and every day, I’m just constantly learning — how can I make this dog better? What’s a different exercise I can do that would make a bigger difference for this dog? It’s a really great community out there where everybody shares information and collaborates, which is really nice.”

 

Pet Project

Not surprisingly, the most gratifying part of Harris’s job is seeing how happy the dogs are when they come in — and seeing them gradually grow stronger and healthier.

“I really love seeing them yanking their owners across the parking lot to come in because they want to come in and play, and I love seeing them get better, having them go from withdrawn and not engaging much with their owners, because they’re in pain, to figuring out what’s painful, treating that, and turning them into a dog the owners forgot they had. That’s really, really rewarding.”

The dog owners are often surprised at the effectiveness of properly targeted rehab, she added.

“Usually they’re pretty blown away after a few treatments. They’re like, ‘they’re so much better, and they’re doing this thing that they never did in a long time,’ or ‘they’re playing with toys again; they’re playing with the other dog.’ It’s great to hear the stories of how much happier their dog is.”

Harris still works one day a week at Riverbend, and appreciates how supportive Thomson has been in her reaching her goal of owning a business.

“He’s retiring soon, so it was a good time for me to transition out and do my own thing here,” she said. “I’m very grateful and very lucky to be here.”

Legislation Tackles ‘Responsible Use’ of Artificial Intelligence

By Contributor
Law

A Brave New Year

By Lauren C. Ostberg, Esq. and Michael McAndrew, Esq.

 

Artificial intelligence — specifically, natural-language chatbots like ChatGPT, Bard, and Watson — have been making headlines over the past year, whether it’s college writing teachers’ attempts to avoid reading machine-generated essays, the boardroom drama of OpenAI, the SAG-AFTRA strike, or existential anxiety about the singularity.

On the frivolous end of the spectrum, one of the authors of this piece used ChatGPT to find celebrity lookalikes for various attorneys at their firm, and learned that ChatGPT defaults to the assumption that, irrespective of race or gender or facial features, most people (including Lauren Ostberg) look like Ryan Reynolds. On the more serious end, the legislatures of state governments, including those in Massachusetts and Connecticut, have labored over bills that will harness, regulate, and investigate the power of AI.

Lauren Ostberg

“The legislatures of state governments, including those in Massachusetts and Connecticut, have labored over bills that will harness, regulate, and investigate the power of AI.”

In Massachusetts, for example, the Legislature is considering two bills, one (H.1873) “To Prevent Dystopian Work Environments,” and another (S.31) titled “An Act Drafted with the Help of ChatGPT to Regulate Generate Artificial Intelligence Models Like ChatGPT.” The former would require employers using any automatic decision-making system to disclose the use of such systems to their employees, and give employees the opportunity to review and correct the worker data on which those systems relied. The latter, sponsored by Hampden County’s state Sen. Adam Gomez, aims to regulate newly spawned AI models.

While the use of AI to draft S.31 is, in its own right, an interesting real-world application of AI, the use of AI in this way is not the only important part of S.31, which proposes a regulatory regime whereby “large-scale generative artificial intelligence models” are required to register with the attorney general. In doing so, AI companies would be required to disclose detailed information to the attorney general, including “a description of the large-scale generative artificial intelligence model, including its capacity, training data, intended use, design process, and methodologies.”

In addition to requiring the registration of AI companies, S.31 (if passed) would also require AI companies to implement standards to prevent plagiarism and protect information of individually identifiable information used as part of the training data. AI companies must “obtain informed consent” before using the data of individuals. To ensure compliance, the bill gives the AG enforcement powers and grants it the authority to propound regulations that are consistent with the bill.

While S.31 provides robust protections against using data garnered from citizens of the Commonwealth in programming AI models, it may fail because of the amount of disclosure required from AI companies. As part of a new and fast-moving field, AI companies may be hesitant to disclose their processes, as is required by S.31.

Michael McAndrew

Michael McAndrew

“This proposed legislation is, of course, just the beginning of government’s attempts to grapple with the ‘responsible use’ (an Orwellian term, if ever there was one) of AI and technology.”

Though commendable in its effort to protect creators and citizens, S.31 may ultimately drive AI-based businesses out of the Commonwealth if they fear that their competitively sensitive AI processes will be disclosed as part of the public registry envisioned by S.31. However, the structure of the proposed registry of AI businesses is currently unclear; only time will tell how much information will be available to the public. Time will also tell if S.31 (or H.1873, referenced above) makes it out of committee and into law.

Meanwhile, in Connecticut

This past June, Connecticut passed a law, SB-1103, that recognizes the dystopian nature of the government using AI to make decisions about the treatment of its citizens. It requires that — by, on or before Dec. 31, 2023 — Connecticut’s executive and judicial branches conduct and make available “an inventory of all their systems that employ artificial intelligence.” (That is, it asks the machinery of the state to reveal itself, in part.)

By Feb. 1, 2024, the executive and judicial branches must also conduct (and publicly disclose) an “impact assessment” to ensure that systems using AI “will not result in unlawful discrimination or a disparate impact against specified individuals.” ChatGPT’s presumption, noted above, that every person is a symmetrically faced white man would be much more serious in the context of an automated decision-making system that impacts the property, liberty, and quality of life of Connecticut residents.

This proposed legislation is, of course, just the beginning of government’s attempts to grapple with the ‘responsible use’ (an Orwellian term, if ever there was one) of AI and technology. Massachusetts has proposed the creation of a commission to address the executive branch’s use of automated decision making; Connecticut’s new law has mandated a working group to consider an ‘AI Bill of Rights’ modeled after a federal blueprint for the same. The results — and the inventory, and the assessments — remain to be seen in the new year.

 

Lauren C. Ostberg is a partner, and Michael McAndrew an associate, at Bulkley Richardson, the largest law firm in Western Mass. Ostberg, a key member of the firm’s intellectual property and technology group, co-chairs the firm’s cybersecurity practice. McAndrew is a commercial litigator who seeks to understand the implications and risks of businesses adopting AI.

Gifts of All Sizes Trigger Five-year Waiting Period

By Contributor
Law

Dispelling Medicaid Myths

By Hyman G. Darling, Esq.

 

It seems like every day a client tells me they are going to protect their assets from long-term care expenses by making a gift of $10,000 to their children. If this writer got paid every time a client misspoke about this rule, he quite possibly could be retired.

First of all, the amount a person can gift to a child or another person on an annual basis is $17,000 per year without having to file a gift tax return. ($18,000 in 2024). Any amount over this annual amount will require a gift-tax return to be filed, but at the current time, the exclusion of the gifts is $12.92 million ($13.61 million in 2024). Therefore, most people should not be concerned about limiting a gift to $18,000.

Hyman Darling

Hyman Darling

“If the person has an interest is protecting assets from long-term care expenses, they can make gifts five years prior to needing care, give a child a remainder interest in a house, create an irrevocable trust (also a five-year lookback), or purchase a long-term care policy or hybrid policy.”

Again, this is only a tax rule, not a Medicaid rule. Any amount that is given to a person triggers a five-year waiting period, which means basically that the amount of the gift, whether it is $5 or $500,000, carries with it a five-year look-back. The donor will not be qualified for Medicaid benefits until either the five years is lapsed or all of the funds transferred are utilized for the benefit of the donor. There is no threshold for a de minimis amount that may be given without triggering the look-back. Some states even question and disqualify Christmas, anniversary, and birthday gifts.

Here is a relatively short list of permissible expenditures that do not normally disqualify a person for Medicaid eligibility, although these amounts may vary from state to state:

• $2,000 personal-needs account;

• Pre-paid burial account;

• $1,500 burial account earmarked specifically for funeral and related expenses;

• Purchase of any necessary medical equipment;

• Payment of expenses of a home while a person is living there;

• A home while the person is living in it (with a limit on equity in some states);

• Personal belongings and household goods; or

• One car.

All other assets, including jointly owned bank accounts, CDs, retirement plans, revocable trusts, second cars, second residences, value of life insurance, U.S. savings bonds, etc., are countable and will have to be spent on a person’s long-term care. Unless a person (usually a child) can prove that they contributed to the parent’s accounts, these assets are not protected as the account will be deemed to be owned 100% by the parent, and thus counted as long-term care assets.

Of course, there are many exceptions to the rules, such as having a minor child, a disabled child, or a child who is blind.

If the person has an interest is protecting assets from long-term care expenses, they can make gifts five years prior to needing care, give a child a remainder interest in a house, create an irrevocable trust (also a five-year lookback), or purchase a long-term care policy or hybrid policy. If a person is not interested in these options, then the decision is to take their chances and hope they are never institutionalized.

While this article is repetitive of prior articles, hopefully the annual exclusion rule for taxes will be understood by more people so that the misinformation will not continue to be spread. There is no substitute for good legal advice from a qualified elder-law attorney when considering any Medicaid or tax-planning strategy or transfer.

 

Hyman Darling, a shareholder at Bacon Wilson and chair of the firm’s estate-planning and elder-law department, is recognized as the area’s preeminent estate planner, with extensive experience with all aspects of estate planning, trusts, tax law, probate and estates, guardianships, special-needs trusts and planning, elder law, and long-term care planning, and additional specialties including adoption and real estate; (413) 781-0560.

2024 Economic Outlook

By
Cover Story Economic Outlook

There’s Uncertainty, but Also General Optimism About the Year Ahead

Brooke Thomson says the Business Confidence Index issued each month by Associated Industries of Massachusetts (AIM), does a fairly effective job of conveying what business owners are thinking.

When the index is consistently below 50, it indicates general pessimism about the economy in general. Conversly, when it’s above 50 and trending north of that mark, it conveys overall optimism and, as the name on the index indicates, confidence about what is to come.

And … when the index is right around 50 and hovering there, as it has been for the past several months, well, that generallly communicates the sentiment that business owners aren’t exactly sure what to think, and are, by and large, neither overly optimistic nor pessimistic, said Thomson, who took the reins as CEO of AIM on Jan. 1.

“What this tells me is that there’s a moderating that’s happening,” she told BusinessWest. “The good thing that you can draw from the index is that when you see it around 50 for several months in a row, there’s some consistency, which is critical for business to be successful; uncertainty is the worst thing that you can see in business. But it also indicates to me that businesses aren’t quite sure if we’re headed to a good place or a bad place. Businesses need to have a sense of being able to forecast wh at’s coming in order to adjust.”

This general state of not knowing what to think extends to economists and economic-development leaders as well, meaning that uncertainty is perhaps the prevailing sentiment heading into a year that promises to be an intriguing one in many ways and on many levels, including a presidential race that will likely consume the nation and its business community.

Bob Nakosteen

“I think growth will slow down in 2024, and there’s less than a 50-50 chance of going into a mild recession, with the emphasis on mild.”

But despite this uncertainty, there is strong sentiment that many of the positive forces seen in a better-than-expected 2023 — from job growth to still-robust consumer spending to falling inflation — will continue into next year.

“I think growth will slow down in 2024, and there’s less than a 50-50 chance of going into a mild recession, with the emphasis on mild,” said Bob Nakosteen, a semi-retired professor of Economics at UMass Amherst. “I don’t expect anything seriously negative to happen; I personally think the economy will be relatively healthy all through 2024.”

Beyond the presidential race, there will be many other things to watch in the year ahead, eveything from interest rates and inflation (and the broad impact of both) to the ongoing workforce crisis and efforts to stem that tide; from global turmoil and the impact it may have on various sectors of the economy to initiatives to address an ongoing housing shortage in this region and beyond; from continual changes in where and how people (and the impact of all this on commercial real estate and individual cities and towns) to those two letters that convey both enormous promise and great concern: AI.

For its 2024 Economic Outlook, BusinessWest talked with several business and economic leaders about these and other topics. Their comments add exclamation points to what we generally knew already — that 2024 will be an important year, one of both challenge and opportunity.

 

 

The Indicators Are Indicating…

Historically, Nakosteen told BusinessWest, the Fed tries — that’s tries — to keep a low profile in presidential-election years, and especially after the primaries are over. Elaborating, he said the Fed generally tries to keep from influencing a race with monetary policy, including sharp increases or decreases in interest rates.

And he expects that pattern to continue in 2024 while acknowledging that “anything could happen.”

And while that broad sentiment applies to the general economy as well, the prevailing opinion, if there is such a thing, is that the mostly tepid growth in GDP — roughly 2% in quarters 1 and 2, but then nearly 6% in Q3 — will continue into 2024, with only a modest chance of the country slipping into a recession, especially if interest rates start coming down, as the Fed has hinted. Sort of.

Tom Senecal

Tom Senecal

“All indications are that inflation is coming under control, which has caused the Federal Reserve to pause on interest-rate increases.”

Overall, 2023 was, in many ways, better than some economists projected, with the country able to skirt a recession despite aggressive efforts to tame inflation through interest-rate hikes. Nakosteen said the overriding reason for this was that, with the notable exception of housing, consumers were still willing to spend, and with supply chains righting themselves, there was plenty for them to spend on.

“In effect, supply created demand and kept things moving,” he said, adding that there are plenty of other positive notes in 2023. Indeed, Wall Street recorded a solid year, with the S&P 500 up a robust 23% over the past year, heading into the final week. Meanwhile, the country continues to add jobs — roughly 240,000 per month, on average, over the past year — and unemployment remains low at 3.8%.

On the downside, the housing market cratered, and banks started to suffer from a combination of a depressed housing market, a slower commercial-lending environment, and having to pay more than 5% interest on deposits when they had been paying close to zero. However, housing starts surged nearly 15% in November, providing still more evidence that the Fed is engineering a soft landing, with another 2% growth projected for the fourth quarter.

The $64,000 question, obviously, is whether the momentum seen on these various fronts can continue into 2024.

Rick Sullivan

Rick Sullivan

“Overall, I’m optimistic that the pieces are coming together, and that we’ll see more progress in 2024.”

Nakosteen, as always, said he is not equipped with a crystal ball, and forecasting is difficult given the many unknowns. But he offered this:

“It takes interest rates many, many months, if not years, to work their way through the channels to affect the economy. And some of that is still happening, and that’s causing a slowdown,” he said, noting the decline from Q3 to what is projected for Q4. “But there is nothing approaching recession; the job market is still very healthy, and that’s the key signal that will tell us if we’re heading into a recession.”

 

Points of Interest

As he looks ahead to 2024, Tom Senecal, president and CEO of Holyoke-based PeoplesBank, said he believes the momentum generated on inflation and interest rates — meaning the pause orchestrated by the Federal Reserve as inflation started to ease throughout the year — will likely continue into 2024, although there are no certainties.

“All indications are that inflation is coming under control, which has caused the Federal Reserve to pause on interest-rate increases,” he said. “At worst, we are hoping for no further increases, which should help the housing and commercial real-estate markets. At best, some predict lower rates, and, quite frankly, many consider equity markets to be overreacting to this potentially good news. We’re not out of the woods yet, but hopefully we are in for a soft landing as recessionary fears seem to be easing.”

Elaborating, Senecal said that much hinges on inflation and the needle continuing to move in the right direction.

Brooke Thomson

Brooke Thomson

“It’s imperative that policymakers send the right signals through their actions that we’re going to continue on this course of enhancing our competitiveness and promoting economic stability.”

“Everything points to price stability, and as long as price stability continues, we should see a stabilization of interest rates,” he explained. “As long as interest rates stay high on mortgages, the housing market will continue to have a ripple effect throughout our economy. Not only are housing sales down, but all economic activity related to homebuying and construction has been severely impacted.

“Several national economists and the Federal Reserve are expressing caution and a non-commitment about the direction of interest rates,” he went on. “Equity markets seemed to react extremely quickly to the interest-rate pause as good news. I am not so sure that we will see any change in interest rates. I think rates will remain stable throughout the year because the Federal Reserve is extremely cautious in any move, up or down, until they have clear signs that the economy, inflation, and employment are back to pre-pandemic levels.”

Overall, Senecal sees improvement on the residential real-estate market, but some lingering challenges, many of them pandemic-related.

“With the recent Federal Reserve pause, and the market’s reaction to that, it has started to impact long-term interest rates on mortgages coming down almost three-quarters of a percentage point,” he noted. “I would expect and hope the impact on the residential real-estate market come spring will have a positive effect on inventory and therefore increase residential RE purchases and inventory.”

Meanwhile, he added, “commercial office-space markets will continue to see a continuing decline as the effects of the pandemic on lease maturities will continue to impact commercial real-estate values. Because Western Mass is heavily concentrated in the medical and educational markets, neither of which are severely impacted by these interest-rate economic changes, I fully expect Western Mass. to remain economically stable throughout 2024.”

 

Progress Report

It’s called the CHIPS and Science Act. This is a federal statute signed into law by President Biden in August 2022 that authorizes roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the U.S., and also includes $39 billion in subsidies for chip manufacturing on U.S. soil, along with 25% investment-tax credits for costs of manufacturing equipment and $13 billion for semiconductor research and workforce training.

Rick Sullivan, president and CEO of the Western Massachusetts Economic Development Council, said provisions of the CHIPS Act require that companies in the supply chain be U.S.-based. And this has translated into some intriguing early-stage talks between the EDC and some international companies.

Sam Hanmer

“Insurance isn’t sexy. It isn’t high-tech, it isn’t Wall Street, it’s just … not sexy, so young people aren’t interested in it, and the ones who are interested are aging out.”

“Not only is there onshoring being discussed, but there’s also some foreign investment from different companies, European mostly, that are looking to get a foothold; they’re at least looking,” he said, adding that, between developable land on which to build and precision manufacturers that could be acquired, there is plenty within the 413 to show them. “It’s an opportunity I haven’t seen in the past seven or eight years.”

And this fairly recent development is one reason why Sullivan is rather optimistic about 2024 and what it holds for the region.

Other reasons include everything from progress on the workforce front (see related item below), with area colleges and universities seeing a boost in enrollment as well as new programs and initiatives to put workers in the pipeline for various sectors, to headway in the preparation of a new growth strategy for the region, to some new businesses in different, and promising, sectors.

Businesses like CleanCrop Technologies in Holyoke, which boasts technology that “redefines food and agriculture efficiency.”

“This is a company that came out of UMass, it’s growing significantly, and it’s getting the attention of some multi-national companies in terms of potential investment,” said Sullivan, adding that there are other companies in what he called the “clean-tech realm” that are emerging and offering great promise for that sector. “Overall, I’m optimistic that the pieces are coming together, and that we’ll see more progress in 2024.”

 

The State We’re In

Thomson told BusinessWest that the tax cut orchestrated by the Healey administration in 2023 was a welcome signal that the state might actually get it when it comes to the high cost of living and doing business in the Commonwealth and the need to take steps to make it more competitive.

She hopes there will be more of these to come in 2024 because the state still has a long way to go when it comes to being competitive with North Carolina’s Research Triangle and other regions like it.

“It’s imperative that policymakers send the right signals through their actions that we’re going to continue on this course of enhancing our competitiveness and promoting economic stability,” she said. “We’re really at an inflection point.”

George Timmons

George Timmons

“It’s about how you respond to the populations that you have on your campus and ensuring that they have the resources and the support they need to be successful.”

There continues to be an outmigration from Massachusetts, said Thomson, noting that the so-called ‘millionaire’s tax’ certainly has something to do with this. But the larger issue is simple affordability, she went on, adding that many young professionals feel priced out by the Bay State, and especially the broad area east of Worcester.

Housing is a huge issue, she said, adding that the state needs to prioritize efforts to create housing on many different levels, from affordable to what would be considered starter homes for young professionals. But it’s not the only issue, she noted, adding that overall affordability also includes transportation and childcare, which are also very high in this state.

“The outmigration numbers worry me because they indicate that the biggest population group that we’re losing are these 25- to 36-year-olds,” she said. “These are the people who maybe came here for college and then concluded that it’s too expensive to stay here.”

Finding ways to keep them here, Thomson added, will go a long way toward easing the workforce issues that are impacting every business sector and in some ways stunting their growth.

 

‘Workforce, Workforce, Workforce’

As he talked with BusinessWest about his sector and efforts to attract and retain talent, Sam Hanmer hit upon an uncomfortable truth.

“Insurance isn’t sexy,” said Hanmer, president of the Chicopee-based Rush Insurance Group, with Rush being his mother’s maiden name. “It isn’t high-tech, it isn’t Wall Street, it’s just … not sexy, so young people aren’t interested in it, and the ones who are interested are aging out. Let’s be honest, insurance has been an ugly word forever — you have to have thick skin to be in this game because no one wants to talk to you.”

With that, he summed up the ongoing challenge of attracting and maintaining a workforce today, hitting on two of the key points: Baby Boomers are retiring, and it’s becoming increasingly difficult to hire their successors, especially in insurance.

“If you have that skillset, you’re in an environment where you can change jobs and get a pretty significant pay increase,” he said, referring to seasoned insurance professionals. “In order to get that skillset — and the number of people who possess it is diminishing — employers have to pay up for it, and that squeezes everyone.”

But even those business sectors that would be considered sexy continue to struggle on this front, with many of those we spoke with summing up 2023, and the overriding issue for 2024, with three simple words: “workforce, workforce, workforce.”

Susan Kasa

Susan Kasa

“Commercial aerospace had come to a virtual standstill for many suppliers, and they had to reinvent the wheel for themselves. But we’re starting to see a comeback to pre-pandemic levels.”

Hanmer was one of them, noting that, in his sector and many others, ‘virtual assistants,’ technology, and especially AI hold the promise of removing the human element, meaning hired help, from some backroom functions, the broad realm of customer service, and “helping customers understand what they’re buying.”

In the meantime, though, Hanmer and those in many other sectors are focusing their efforts on educating young people about what could be promising careers, including those in that non-sexy realm known as insurance, and grooming them for this work.

“We’re going to start looking at young, inexperienced people who have a desire to potentially have a good-paying job in insurance, because these are good-paying jobs, and you just can’t get people to fill them,” he explained. “So we’re going to have to start growing them from a younger age, and, hopefully, they’ll stick around.”

With that, again, he spoke for business owners across virtually every sector.

 

School of Thought

It will be called the Adult Learner Success Center.

This is a new initiative at Holyoke Community College (HCC), that, as the name suggests, has been created to help adult learners — non-traditional students generally in the their mid-20s and older — achieve success, however they choose to define it.

“It will help address the specific needs of the adult leader, and we’re really excited about it,” said George Timmons, who took the helm as HCC’s president this past summer. “It’s about how you respond to the populations that you have on your campus and ensuring that they have the resources and the support they need to be successful.”

And the program says a lot about the state of higher education as the caldendar turns to 2024.

Indeed, with the passage of the MassReconnect program, which provides free community college to eligible individuals 25 and older, these institutions have seen a much-needed boost in enrollment (4% at HCC, for example) that is also changing the demographic on their campuses.

While enrollment has edged higher at community-colleges and other institutions in 2023, overall enrollment and financial challenges persist, said Timmons, citing the announced closing of the College of St. Rose in Albany, N.Y., after more than a century of operation, providing more evidence — not that any was needed — that these are difficult and somewhat perilous times in higher education.

“It’s still real when you think about the challenges facing colleges and universities, especially in the Northeast, where the birth rates are signficantly less than they were years ago, putting fewer students in the pipeline,” he said, noting that, on a different spectrum, there are an estimated 700,000 people in the Bay State who have attended college but not finished what they started.

This represents a tremendous opportunity for community colleges, he said, adding that this focus on the adult learner and helping them achieve success will be among the many key issues to watch in 2024.

 

Making Things Happen

Susan Kasa, president of Boulevard Machine & Gear in Westfield, said that, a year ago, her shop was able to shut down the week between Christmas and New Year’s Day, a non-traditional break that was enjoyed by employees and managers alike.

So much so that the plan was to do it again, she said, adding that it just wasn’t possible to do so this year.

“Right now, we have so much demand that we will be open that week and plugging along,” she said in an interview prior to the holidays, adding that this demand comes in the form of a high volume of orders, a number of them in the expedited category, that cover most all of the customer groups served by this precision manufacturer.

That includes what Kasa calls ‘outer space,’ meaning everything from satellites to the rockets taking billionaires and their clients to the edge of space; from defense to aerospace.

This surge in orders reflects many of the issues that will define 2024, from turmoil in the Middle East, Ukraine, and other hotspots to a resurgence in airline travel — all of which is positively impacting precision manufacturers, and there are many of them in the 413, who serve original equipment manufacturers in those markets.

Indeed, on the space and defense sides of the ledger, Boulevard is currently handing orders for parts for everything from the satellites that track incoming missiles to the Apache helicopter, and all indications are that the pace of activity will only increase in 2024 and probably beyond.

“We’ve been delivering parts in this last quarter of the year, and the numbers are very strong right through 2032,” she said, ading that L3Harris, the Florida-based defense contractor that specializes in microwave weaponry, surveillance solutions, and electronic warfare, has become one of Boulevard’s larger customers for outer space, satellite, and aerospace work.

This upward trajectory in orders, which led to the hiring of three new machinists in 2023, also includes aerospace, she said, adding that a pronounced lull in that sector, resulting from the grounding of the Boeing 737 Max, a sharp decrease in air travel during the pandemic, and other factors, is now to be discussed with the past tense.

“Commercial aerospace had come to a virtual standstill for many suppliers, and they had to reinvent the wheel for themselves,” Kasa said. “But we’re starting to see a comeback to pre-pandemic levels. We’re finally getting back to normal; orders are resuming, and they’re taking all this inventory that may have been sitting for a while. With both Boeing and Airbus, they’re seeing orders come in, and they’re large orders.”

 

Hybrid Schedules — and Even a Four-day Week — Gain Traction

By
Mike Long and Alana Sambor
Features Special Coverage

Making It Work

Mike Long and Alana Sambor

Mike Long and Alana Sambor say Axia employees appreciate a four-day workweek.

 

They call it the ‘buddy system.’

And it’s just one of many elements that have gone into what has thus far been a successful transition to a four-day workweek at West Springfield-based Axia Insurance.

Mike Long, the company’s CEO, explains how it works.

“Everyone picks or is assigned a buddy; if someone is not on in Monday, their buddy will take anything that comes in that has to be handled on Monday,” he said, noting that, in insurance, there are some things that can’t wait a day, so the buddy system is imperative to this arrangement whereby employees can take either Monday or Friday off, thus earning a three-day weekend 52 weeks a year.

The success of the buddy system has helped Axia make conversion to four days — 34 hours, with a goal of eventually getting it down to 32 hours — a success story that is still a work in progress, said Long, adding that a great deal of study and preparation went into this, and the prep work is certainly paying off thus far — for employees and the company.

“If you want to work at home because you find there are fewer distractions there, that’s fine. But if you feel the need to be at work because there are fewer distractions there, that’s fine, too. For those of us with kids and dogs, there are fewer distractions at work.”

Alana Sambor, director of Operations, agreed. She said employees have enthusiastically embraced the change, as might be expected, and there have been a number of benefits, everything from steady, and in some cases improved, levels of productivity, but with happier employees, to a decline in the number of requests for other paid time off, with employees scheduling doctor, dental, and vet visits; home-appliance repair windows; and more on the one day a week they are off (more on all this later).

As noted, the four-day week has come about through a hard focus on employee satisfaction, followed by study, examination of best practices (what few there are in this realm), and what could be called beta testing, running the program through its paces over this past summer, said Long, adding that businesses thinking about following this course need to do their homework, think it through, and effectively communicate everything that needs to be communicated to employees at all levels.

Allison Lapierre-Houle

Allison Lapierre-Houle says remote work and hybrid schedules have earned a measure of permanence at ArchitectureEL.

Meanwhile, the Wilbraham offices of Giombetti Associates tout what Bobby O’Neil calls a four-and-a-half-day workweek. There is a half day on Friday, with almost all employees — often everyone but him — working remotely on that day. This is the latest spin, or evolutionary course, on remote policies that are working for the company on many levels.

“The other four days, there is flexibility, with remote work an option for those who prefer it,” said O’Neil, senior advisor at this company, which specializes in pre-employment assessments, leadership training and development, and talent-acquisition solutions.

“If you want to work at home because you find there are fewer distractions there, that’s fine,” he said. “But if you feel the need to be at work because there are fewer distractions there, that’s fine, too. For those of us with kids and dogs, there are fewer distractions at work.”

As for Fridays and the quietness in the office, O’Neil said he enjoys it, mostly. “I’m alone, but I’m not lonely,” he quipped.

“Everyone has a three-day weekend, which has improved morale exponentially and improved work-life balance for everyone. The positivity in the office and the energy have completely changed.”

Fridays are nearly as quiet at the ArchitectureEL offices in East Longmeadow. That’s because seven of the company’s 10 employees are working remotely. All employees have the option to work remotely several days of the week, and most of them, but not all of them, make Friday one of those days, said Allison Lapierre-Houle, office manager for the company.

She said this is the pattern, or schedule, that employees have generally settled into, adding that remote work has earned a measure of permanence here, as it has elsewhere.

For this issue, we examine this shift in the workplace, and the many variations on the broad themes of remote work, flex schedules, and, yes, a shorter work week.

 

Week Link

As he talked about how the four-day week came to be Axia, Long said there was some careful reflection deeply rooted in a focus on employee satisfaction, recruitment, and retention.

Elaborating, he said Axia had embraced remote work in the wake of the pandemic, and most employees were taking advantage of it.

Bobby O’Neil

Bobby O’Neil says Giombetti Associates’ four-and-a-half-day workweek is one of several initiatives to help employees balance work and life.

But it came with a price tag of sorts, he went on, referencing a loss of company culture because employees were not together in the same place at the same time. “We were losing the culture of Axia,” he said. “All of the sudden, it felt that they were slipping away from us; we weren’t a family anymore.”

But, and this is a big but, the company also recognized the need to create a work environment that was attractive to current and potential employees, especially in the middle of an ongoing workforce crisis.

“We realized that the most valuable asset we have at the company is our employees, and based on that understanding, we’ve tried to create a culture that is very employee-focused,” he said, adding that Axia even boasts a gym at its facility. “What we wanted to do is create an effective work-life balance because it’s good for the employees. And if it’s good for the employees, it’s good for the clients.”

One method that emerged for getting there is a four-day work week, something that has been tried, with some success, in Europe, but not so much in the U.S.

“Every company had an identity before they went remote and hybrid, and now you add to that the complexity of remote workers and hybrid workers, and they have to think of creative ways to preserve the culture that they have.”

At the heart of the initiative is effective communication about all aspects of the new system, from the nuances of the buddy system to what is expected in terms of productivity, said Sambor, noting that it was made clear that team members would be doing the same amount of work, but in fewer days.

“The best rule of thumb is to set the standards that you’re trying to accomplish,” she noted. “If you have a full-time staff, and they’re taking 100 calls a day, and that’s what you expect from them, when they go to a four-day work week, we’re still expecting them to take 500 phone calls.”

But the tradeoff — more work in less time for that three-day weekend — has been enthusiastically accepted.

“Everyone has a three-day weekend, which has improved morale exponentially and improved work-life balance for everyone,” Sambor said. “The positivity in the office and the energy have completely changed.”

Long agreed.

Amy Roberts

Amy Roberts says employees at PeoplesBank have come to appreciate an organization that allows them some flexibility.

“One thing we have really noticed is the attitude of the employees in the office is so much more positive,” he told BusinessWest. “People seem to more energized, more excited — they tell stories about what they did on their day off.”

And while the new system is set and now policy at Axia, this is still a learning process, he noted, adding the company has “stubbed its toe” a few times, but there’s been nothing to make it second-guess this huge decision.

 

Remote Possibilities

That same sentiment seems to apply to the companies that have fully embraced remote work and hybrid schedules.

Giombetti introduced remote work before the pandemic, said O’Neil, adding that it works with clients across the country, many of whom it simply cannot meet in person.

“While some companies were forced into remote work and a virtual workspace, we were honing it,” he explained, adding that such arrangements work for clients and employees alike.

Especially the four-and-a-half-day workweek, which has been in place for several years now, he said, and helps employees as they seek to achieve work-life balance.

As for the clients Giombetti is working with, many are doing some honing of their own when it comes to policies regarding where and how people work.

Like the managers at Axia, O’Neil said that, as companies look to embrace different schedules and policies, the best course is to effectively communicate with employees and job candidates alike about what they should expect — and what is expected of them.

“This could include, but is not limited to, goals, core hours of work, mandatory meetings, mandatory check-ins, and what it means to maintain their corporate culture, too,” he said. “Every company had an identity before they went remote and hybrid, and now you add to that the complexity of remote workers and hybrid workers, and they have to think of creative ways to preserve the culture that they have.”

Remote work has certainly become part of the workplace equation at Holyoke-based PeoplesBank.

“Everyone has certain days that they’re remote every week, but if something comes up and they have to change it, we’re totally flexible to that because everyone has a different lifestyle.”

With more than 325 employees, the bank has a large number of front-facing employees, such as bankers and branch managers, for which remote work is not an option, said Amy Roberts, executive vice president and chief Human Resources officer. However, for others, the bank has adopted policies that enable such employees to work a hybrid schedule, with most in the office at least a few days a week.

“We have some people who prefer to be in the office,” she continued. “But the hybrid choice is very popular for those positions where we offer it.” 

And while having this flexibility to work a few days a week is appreciated by existing employees, the bank is not moving in the direction of offering fully remote work, with the exception of a few specific positions. “We’ve probably lost a few candidates because they are looking for fully remote,” she said. “On the other hand, people have absolutely remarked that they appreciate coming to an organization that allows them some flexibility.”

Those same sentiments have been expressed at ArchitectureEL, said Lapierre-Houle, adding that the company was, like most, fully remote during the pandemic but has since embraced hybrid schedules to help maintain the concept of teamwork, which is critical in architecture. Most are in the office on Mondays, when there are all-office meetings, she told BusinessWest, while Fridays, as noted earlier, are quiet.

Overall, she said, flexibility is the driving force behind the policy.

“Everyone has certain days that they’re remote every week, but if something comes up and they have to change it, we’re totally flexible to that because everyone has a different lifestyle,” she explained. “We’re super flexible about it.”

 

For Employers, the Challenges of Managing a Workforce Keep Growing

By
Allison Ebner
Employment Special Coverage

Coping with the Elements

Allison Ebner

Allison Ebner says there is a good deal of tension between employees and employers in the workplace today.

 

Allison Ebner counts herself a fan of the Discovery Channel show Deadliest Catch, which chronicles the lives of crews fishing for king and snow crab in Alaska, with that name effectively communicating just how dangerous a profession this is.

And Ebner, who took the helm at the Employers Assoc. of the NorthEast earlier this year, can find seemingly endless parallels between the dangers of crab fishing in the Bering Sea and the perils of managing the modern workplace.

With the former, it’s gale-force winds, rogue waves, ice formations, and dealing with greenhorns. With the latter, well … it’s everything from new regulations like family medical leave to coping with heightened expectations among employees concerning remote work, hybrid schedules, and more, to the demands of the younger generations.

In both cases, things come at leaders quickly and with great force, Ebner said. They must be as ready as they can be for whatever might hit them and then able to cope with the rough seas, whether they’re of the literal or figurative variety.

“It’s difficult … if you’re a Baby Boomer C-suite executive and you’re trying to get your arms around this workforce, it’s a bear,” she told BusinessWest, adding that, over the past few years, there have been even more challenges heaped upon business owners and managers. These include everything from less tolerance of differing opinions (on everything from science to politics) to an apparent gulf between employees and employers when it comes to pre-pandemic levels of production and results, and whether businesses should be back there by now.

“There’s a very, very big Rock ’Em Sock ’Em Robots thing happening here — there’s tension between employers and employees,” she explained. “First, there was the Great Resignation, then there was quiet quitting, and now there is a great divide: employers’ expectations are coming back to pre-COVID expectations, but employees are not coming back to work with that same mindset.”

“It’s difficult … if you’re a Baby Boomer C-suite executive and you’re trying to get your arms around this workforce, it’s a bear.”

As for that lack of tolerance for differing opinions, it’s showing up in a rise of calls to EANE’s hotline that fall into the broad category of employee relations, said Ebner, who described them this way: “I have an employee who has done, or is doing, this; what do I do about it?”

She noted that “there’s a lot of workplace-respect things happening today; we seem to, as a general society, have lost our ability to get along with one another to some regard. And I think that translates to the workplace; there’s less tolerance for someone who doesn’t think as I do or believe exactly the same things I do.”

As a result, EANE has been doing considerably more workplace-respect and conflict-resolution training these days, but the underlying whitewater remains.

“There’s no happy medium, so there’s a lot of tension,” she went on, adding that, with what is shaping up to be an epic presidential race this year, this tension will only rise as 2024 progresses, probably creating more employee-relations-related calls to the hotline.

Overall, in this climate and at this time of seemingly constant change, employers must put a premium on communication and, especially, training their mid-managers, what Ebner called their “people leaders.”

“These are the mid-level managers that have been ignored for years,” she said. “They’ve been ignored, they haven’t been trained, and they’re just sort of hanging out there. They need to be focused on; this is how organizations are going to be successful. They’re closest to the money — the money is your employees; you can’t function without them.”

For this issue’s focus on employment, BusinessWest talked with Ebner about the forces rocking the boat that is the modern workplace and what can be expected in the months to come.

 

Riding the Waves

Returning to Deadliest Catch, Ebner explained that, while the boat captains captured on the show possess many admirable qualities, flexibility, a willingness to compromise, and even communication are generally not among them.

And these are traits that today’s business managers certainly need, she went on, adding that, without them, life is going to be much more difficult and stressful — as if it weren’t already difficult and stressful enough, for those reasons above, many of which started during, or were accelerated by, the pandemic.

“There’s a lot of workplace-respect things happening today; we seem to, as a general society, have lost our ability to get along with one another to some regard. And I think that translates to the workplace; there’s less tolerance for someone who doesn’t think as I do or believe exactly the same things I do.”

Return to work, or RTW — another acronym that has worked its way into the lexicon — is just part of it.

The larger piece involves who’s holding the cards in the workplace today, she went on, adding that, during COVID and the height of the workforce crisis that followed, it was clearly employees that were driving the boat. Many think they still have the upper hand, but, increasingly, employers believe they are back in control.

And that’s where the rock-’em-sock-’em turmoil comes in.

“With COVID, we kind of dropped all of our performance-management standards, and now, employers are trying to bring those back,” Ebner explained. “They’re saying, ‘you can’t call out four times and violate our attendance policy and still have a job.’ During COVID, you could, and you could post-COVID the past few years because the job market was so tight.

“Now, that’s settled down a little bit, so employers are trying to rein things in a little bit, and employees are very resistant to that,” she went on. “We see it with return to work … you see it nationally with large corporations that are trying to bring their employees back, some more successfully than others. Employees want their work-life balance, they want that flexibility, and they expect it.

“They have higher expectations from their employers because they got more during these past three years and they have more negotiating power, and they want to keep that,” she continued. “But employers are saying, ‘we have a business to run here, the economy’s tough, it’s getting more competitive, and we’ve got to buckle down.’”

This general difference of opinion is contributing to the uptick in employee-relations matters, said Ebner, adding that things have been at a slow boil since last summer, but they’ve been heating up in recent months.

And this is just one of the dynamics creating more challenges in the workplace, adding that relatively new regulations, such as family medical leave and changing demographics within the workforce — with Baby Boomers moving into retirement, Gen Xers on the downside, and Gen Y and Gen Z “taking over” — are among the others.

“They have higher expectations from their employers because they got more during these past three years and they have more negotiating power, and they want to keep that. But employers are saying, ‘we have a business to run here, the economy’s tough, it’s getting more competitive, and we’ve got to buckle down.’”

“We have to be mindful of who’s in the workplace today,” she said. “And if you look at five, 10, 15 years down the road, most companies are doing strategic planning and predicting the future … and it’s Millennials and Zoomers, and that’s a real mindset shift for a lot of the C-suite people we talk to, and they are extremely unhappy about it.”

They’re not happy because what they’ve done for benefits and the larger employee value proposition (EVP) was much different for the work-first, family-second Baby Boomers than it is for the younger generations, who have different priorities and are not shy about communicating them.

“It’s a reality, but it’s also a slap in the face for many,” she said, referring, again, to older, Baby Boom-generation leaders. “But there is no choice; the younger generations are here, they are dominating, and they are the future; we don’t have the robots yet that you can program.”

In this environment, the managers that are thriving (and, yes, that’s a relative term) are those who can communicate with their employees and train those that Ebner calls “people leaders.”

“It’s all about expectations, and the employer who sits down with their team and communicates what is expected will fare better in this environment,” she said.

“The number-one thing employers can do right now to help themselves is train their people leaders; they’re the ones delivering the message inside the organization regarding expectations and performance metrics,” she added. “They are the conduit; they are the veins that run through the organization where everything flows through. Good people leaders have good communications skills, and they help set expectations. And it’s a two-way street now; the employee feedback gets to the leadership of an organization through the people leaders.”

All this points to a need for more professional development in the workplace, she said, adding that employees are asking for it, if not demanding it, and employers should want to provide it.

 

The Sea Suite

Reflecting on the current scene in the workplace, Ebner said that many of the Baby Boom-aged HR professionals she knows say they can’t wait to retire.

“They’re kind of done; they’re ready,” she told BusinessWest. “They’re not ready for the brave new world we’re in.”

Those sentiments speak to how challenging the workforce has become in recent years, a pattern that will likely only accelerate in the future, a reality that brings still more comparisons to Deadliest Catch.

There is nothing easy about catching king crab in the Bering Sea. And these days, there’s nothing easy about managing a workforce. It all comes down to being ready for whatever might come at you.

Mont Marie Meets Rehab Needs Between Hospital and Home

By Contributor
Barbara Chiampa
Healthcare News Special Coverage

Bridging the Gap

By Emily Thurlow

With classic Christmas carols softly emanating from a TV across the room and an Irish wolfhound named Veren panting rhythmically a short distance behind her, Barbara Chiampa pedaled a stationary bicycle on a recent afternoon at Mont Marie Rehabilitation & Healthcare Center’s therapy gym.

With guidance from Reliant Rehabilitation physical therapy assistant Tara McCauley, Chiampa was working on improving her balance and walking. After noting improvement in her gait and movement with a handheld assist, Chiampa paused for a few kisses from Veren, a 2-year-old therapy dog.

The staff at the Holyoke facility benefits from the canine too, said his handler, registered occupational therapist Sylvia Korza of Reliant Rehabilitation. “He comes to work with me, and he loves everybody. He’s great for therapy — even the staff. He helps lift everyone’s mood.”

The gym, which was expanded in 2016, features several pieces of equipment dedicated to improving mobility, including parallel bars and practice stairs. Beyond the machines, the therapy gym offers opportunities for McCauley and Korza to customize regimens that are tailored to the specific needs of patients recovering from medical procedures, injuries, or illnesses.

The therapy offered at the center’s gym is one of multiple subacute rehabilitation care services offered at the 84-bed Mont Marie facility, which was built in 1962 and formerly owned and operated by the Congregation of the Sisters of St. Joseph. In 2014, Mont Marie was purchased by Tryko Partners, which is headquartered in New Jersey, and is managed by its healthcare subsidiary, Marquis Health Consulting Services. Mont Marie is one of 10 of Marquis’ facilities in Massachusetts.

In recent years, the licensed nursing facility’s short-term rehabilitation care services have continued to grow, adding new programs and certifications, to meet the growing needs of the community.

A need for subacute or short-term rehabilitative care can emerge after a hospital stay for hip surgery or a stroke, or if an individual needs some physical strengthening or medication management, said Natasha Pieciak, administrator at Mont Marie.

“Baby Boomers are getting older, so as the population ages, there’s more of a demand for supportive services. We’re not a hospital — we’re kind of like a step down; we’re supportive services to bridge that gap between home-care services and the hospital.”

Initially, the 26-bed first floor was dedicated to this service, but it has since expanded to the 29-bed second floor as well. At times, admissions have jumped as high as 50 per month.

“There are a lot of factors that influence this growth,” said Pieciak, who has served as administrator of the center since September 2022. “Baby Boomers are getting older, so as the population ages, there’s more of a demand for supportive services. We’re not a hospital — we’re kind of like a step down; we’re supportive services to bridge that gap between home-care services and the hospital.

“With the aging population, I think these services become more needed out in the community, so we’re here to support people in that way, so they can be successful at home. People want to be at home, so we’re really here to try to support them to get them ready to do that.”

Barbara Chiampa

Barbara Chiampa pedals an exercise bicycle at Mont Marie Rehabilitation & Healthcare Center in Holyoke.

Through Mont Marie’s partnerships with Baystate Medical Center in Springfield and Holyoke Medical Center, as well as referrals from Mercy Medical Center in Springfield and Cooley Dickinson Hospital in Northampton, Pieciak said Mont Marie has been made aware of the growing demand for these rehabilitative services.

“We work closely with our partners within the hospital systems; we collaborate,” she said. “With Baystate, for example, we have weekly calls with their accountable-care organization management team, who will follow a patient from hospital to home, and we communicate with them, and they tell us what they’re seeing, what their needs are. We’re just really building that relationship and working with them to help identify and meet the needs that we’re seeing out in the community.”

“The goal of these specialty programs is to educate and train the residents how to manage and live with their conditions.”

In working with Baystate, Pieciak said Mont Marie has become one of two skilled-nursing facilities that have qualified for a waiver for the three-day requirement under the Medicare Shared Savings Program. The waiver eliminates the requirement to have a three-day inpatient hospital stay prior to a Medicare-covered, post-hospital, extended-care service.

What this means, Pieciak explained, is that, if a patient is in a hospital emergency department but don’t have a three-day stay, instead of going back home and potentially falling or fracturing a hip, they could go to Mont Marie as long as they meet a skilled need.

“This is huge because there’s a gap there,” she said. “Residents would go home and could potentially have worse outcomes. What we’re doing is bridging that gap from hospital to home.”

In addition to physical and occupational therapies, Mont Marie’s subacute rehab offers speech therapy up to seven days a week.

 

Life Goals

Within its major focus on subacute rehabilitation care, Mont Marie offers three specialty programs: cardiopulmonary, chronic kidney disease management, and heart failure.

“The goal of these specialty programs is to educate and train the residents how to manage and live with their conditions,” Pieciak said.

Natasha Pieciak

Natasha Pieciak says Mont Marie works closely with its partners within hospital systems.

The cardiopulmonary rehabilitation program is physician-led under the direction of a pulmonologist and focuses on helping patients achieve the most active life possible despite any physical limitations and/or cardiopulmonary diagnoses. The program, which is geared toward individuals with diagnoses of chronic obstructive pulmonary disease (COPD), post-lung transplants, emphysema, and acute respiratory failure, offers access to lab and radiology services, tracheostomy care and management, nebulizer therapies, bladder scanning, and several oxygen therapies, including liquid nitrogen.

The renal program is focused on reducing symptoms of chronic kidney disease, increasing a patient’s quality of life, and promoting independence. Mont Marie offers onsite dialysis provided by American Renal Associates, consultative visits by staff nephrologists, diabetic management and education, a monthly support group, and health coaching.

In October, Mont Marie received its skilled-nursing facility heart-failure certification from the American Heart Assoc. (AHA). In order to be considered eligible for this certification, facilities must be located in the U.S. or a U.S. territory and implement a heart-failure program that uses a standardized method of delivering clinical care based on current evidence-based guidelines.

“This was a huge accomplishment,” Pieciak said. “There are very few facilities that are credentialed. The American Heart Association has armed us with innovative methods and additional tools so that we can be trailblazers and give our heart-failure patients the best care.”

The vetting provides an evidence-based framework for evaluating skilled-nursing facilities against the AHA’s science-based requirements for heart failure patients, including care coordination, clinical management, quality improvement, program management, and patient and caregiver education and support.

According to the AHA, nearly one in four heart failure patients are readmitted within 30 days of discharge, and approximately half are readmitted within six months. It has also been suggested that about 25% of readmissions may be preventable.

“We’re trying to get ahead of hospital readmissions,” said Raymonda Sample, the lead for the heart-failure program and unit manager.

With the certification, Mont Marie has been provided with access to centers on treating heart failure and its co-morbidities.

Sample noted that one of the biggest benefits to the staff’s education on the heart-failure program is being able to educate patients on how they can live more independently with fewer flareups of their disease.

To that end, Mont Marie uses what’s called a ‘zone tool.’ The traffic-light color-coded guide indicates an all-clear, or green, when a patient has no shortness of breath; chest pain; swelling of the feet, ankles, legs, or stomach; or weight gain of more than two pounds. It’s time to call a doctor if a patient is in the so-called warning (yellow) zone, when they’re experiencing dizziness; dry, hacking cough; more shortness of breath; uneasy feelings; no energy; difficulty breathing when lying down; swelling of the feet, ankles, legs, or stomach; or weight gain of three or more pounds in one day or five pounds in one week.

A medical alert, or red zone, is when the previous symptoms have been exacerbated and a patient is having a hard time breathing or is experiencing unrelieved shortness of breath while sitting still, chest pain, or confusion.

In addition to this tool, Sample has created an entire guide board for staff that she also uses to educate family members of patients. The tool helps provide a better continuity of care, she explained.

“With this education, we are able to identify how the patient is feeling for the day,” she said. “If say, the patient is in the middle of therapy and they’re feeling short of breath, or telling the therapist maybe they haven’t eaten much in the last couple of days, or not sleeping well — there’s a sort of board out there where you can see the different signs and symptoms of heart failure.”

 

Safe at Home

Even though a patient has a plan in place to be discharged from the facility following treatment at Mont Marie, care doesn’t end at the door.

“When we discharge patients, we do follow-up calls with the patient just to find out how the transition back home goes, the home care services … we make sure they’re seen by their primary-care physician within 10 days, and if they don’t have a scale, we make sure we send them home with one,” Sample said. “This is so both our patients and the staff recognize the signs and symptoms of heart failure, so we can try to avoid rehospitalization.”

EEOC Takes Action Against Associational Discrimination

By Contributor
Law Special Coverage

Guilty by Association

By Trevor Brice, Esq.

Under the Americans with Disabilities Act (ADA), employers are required to provide reasonable accommodations to qualified individuals with disabilities who are employees or applicants for employment. However, the ADA does not require an employer to assist — or in other words, accommodate — a person without a disability due to that person’s association with someone with a disability.

Still, an employer cannot discriminate against an employee or applicant because of that person’s association with someone with a disability. This is what is called ‘associational discrimination,’ which, in the below case, was due to another’s disability under the ADA.

On Sept. 19, 2023, the U.S. Equal Employment Opportunity Commission (EEOC), announced that it had sued a private school for associational discrimination under the ADA. According to the EEOC’s announcement, the school allegedly discriminated against one of its teachers by refusing to renew her contract over her daughter’s disability.

Trevor Brice

Trevor Brice

“An employer cannot discriminate against an employee or applicant because of that person’s association with someone with a disability. This is what is called ‘associational discrimination.’”

This was “precisely the kind of conduct the ADA’s associational-discrimination provision was intended to prohibit,” said Rosemarie Rhodes, EEOC’s Baltimore Field Office director. On Dec. 15, the EEOC announced that the matter had been settled for just over $85,000 by the private school, with the school to pay $50,858 in back pay, $4,428 in interest on the back pay, and $30,000 in non-wage damages.

This settlement brings associational-discrimination enforcement into the limelight and presents more scenarios for employers to look out for and train their employees on for the new year.

 

Associational Discrimination and the ADA

Associational discrimination based on another’s disability requires “that (1) the employee was qualified for the job at the time of the adverse employment action, (2) that the employee was subjected to an adverse employment action, (3) that the employer knew at the time of the adverse employment action that the employee had a relative or associate with a disability, and (4) that the adverse employment action occurred under circumstances raising a reasonable inference that the disability of the relative or associate was a determining factor in the employer’s decision” (Carey v. AB Car Rental Servs. Inc.).

The EEOC, in its announcement, stated that the school was aware of the teacher’s daughter’s disability and that it decided to not renew the teacher’s contract because it assumed (without investigation, or even asking the teacher) that her daughter’s disability, coupled with the COVID-19 pandemic, would undermine the teacher’s focus and commitment to her job. The school instead decided to renew the contracts of other teachers who had less experience and tenure than the teacher whose daughter had a disability.

In its complaint, the EEOC pleaded the requirements of an associational-discrimination claim based on disability through the circumstances described in its announcement. The teacher performed her job satisfactorily, according to the EEOC, making her qualified for the job at the time the private school refused to renew her contract. In order to not be qualified for her job, the school would have had to demonstrate the teacher had performance deficiencies or otherwise could not perform the essential functions of her job.

Further, the private school subjected the teacher to an adverse employment action by not renewing her employment contract. An adverse employment action can be any action by an employer that takes away a benefit of an employee’s employment, e.g. taking away a company car, suspension from employment, termination, etc.

“Without both knowledge and a reasonable inference, associational discrimination will most likely be unactionable. Nevertheless, it is important to stress to employees that discrimination and harassment based on protected class is prohibited, no matter the circumstance.”

Finally, the EEOC pleaded that the private school knew of the teacher’s daughter’s disability and allegedly specifically cited that reason for not renewing the teacher’s contract, making for the reasonable inference that the teacher’s daughter’s disability was a determining factor in its decision. As such, the EEOC met its burden for pleading its case of associational discrimination based on disability, which most likely prompted the private school to settle the claims.

 

Pitfalls of Associational Discrimination

As shown by the EEOC’s enforcement action, associational-discrimination claims are actionable claims that can cost employers a substantial amount of money. The pitfalls of these claims are that they are not the easiest to catch. For example, it is comparatively easier to catch when there is direct discrimination (e.g. a racial remark, comment against a disability) than to read into the subtext of a conversation that is deprecating to an associate of an employee who is part of a protected class.

However, there are ways to teach this kind of discrimination and harassment to frontline employees and make them aware enough of an associational-discrimination or harassment issue to report it.

First, employees should be aware that discrimination or harassment based on protected class (e.g. race, religion, sexual orientation, ethnicity, gender, etc.) is prohibited. Along these lines, it is equally prohibited to discriminate or harass another employee based on the protected characteristics of someone with whom the employee associates. For example, it is illegal to use the knowledge that an employee has Jewish friends to discriminate against that employee and subject him to adverse employment actions based on that knowledge.

Second, it is important to stress that it is the knowledge of the employee’s associates’ protected classes that makes associational discrimination actionable. An offhand comment by an employee that happens to relate to an employee’s associates’ or relatives’ protected class will not necessarily implicate associational discrimination, but making the same comment and directly referencing the associate or relative and their protected class will make for this implication. In this sense, if it is discriminatory or harassing to the associate or relative, it will most likely be discriminatory or harassing to the employee.

If cornerstones of associational discrimination like these are taught and enforced, it will be less likely that an employer will be subject to the same fate as the above-referenced private school.

 

Takeaways

Associational discrimination can raise its head in a variety of circumstances, including the contract-renewal scenario above; hiring, termination, and other employment decisions; as well as discriminatory and harassing behaviors from employees.

Though it is more difficult to catch than scenarios in which discrimination or harassment based on protected class is direct, the pivotal elements of associational discrimination are knowledge of the associates’ or relatives’ protected class and the reasonable inference that the knowledge was a determining factor in the adverse employment decision. Without both knowledge and a reasonable inference, associational discrimination will most likely be unactionable. Nevertheless, it is important to stress to employees that discrimination and harassment based on protected class is prohibited, no matter the circumstance.

Further, a related claim to associational discrimination is a retaliation claim for reporting discrimination or harassment perpetrated against another employee. In this scenario, an employee reports that another employee is being discriminated against because of their protected class, and then the reporting employee is subjected to an adverse employment action. This kind of ‘associational’ activity by employees is protected, and an employer can be subjected to legal action if the report is not handled properly.

As associational discrimination and related retaliation can be difficult to detect, it is prudent to contact legal counsel in order to avoid any potential liability and train staff to recognize and report associational-discrimination scenarios.

 

Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

Enfield Is on Track for Continued Progress

By
Kristine Koistinen
Community Spotlight

Community Spotlight

Kristine Koistinen

Kristine Koistinen says Enfield’s long-awaited rail stop is creating a great deal of anticipation in the community, as well as growing interest from developers.

 

For decades now, a rail stop in Enfield, Conn. on the line from Springfield to Hartford, New Haven, and points south has been a dream.

Finally, the dream is becoming reality.

Indeed, the Connecticut Department of Transportation made it real several weeks ago when it attached hard dates to the $45 million project to build a train station in the section of Enfield called Thompsonville, in the shadow of apartment buildings created at the sprawling former Bigelow Carpet complex.

Those dates include the summer of 2024 for the final design to be completed, the winter of 2025 for the construction bid to be awarded, the spring of 2027 for accompanying rail and bridge work to be completed, and the fall of 2027 for completion of the station and platform.

While a formal ribbon cutting is almost four years away, there is already a great deal of anticipation and excitement in this community of just over 42,000 — as well as interest from the development community, said Town Manager Chris Bromson, adding that the train stop will be, in a word, “transformational.”

“When you look at any of the other transit-oriented districts in Connecticut, it’s been just a boon to economic development and housing,” he told BusinessWest. “If you look at Meriden and other cities in Connecticut that have gotten a train stop, you’ve seen dramatic growth, so we’re very excited, to say the least.”

Elaborating, he said momentum toward a rail station has prompted developers to take options on several properties near the riverfront in the area near the planned station, including an old Eversource power plant, and he expects such interest to only escalate in the months and years to come.

“If you build it, they will come,” he said. “And two years is going to go by in a heartbeat, and developers … they don’t want to miss the train. They want to get in on the ground floor now because those properties are going to be hot.”

Meanwhile, the rail station is just one of many intriguing developments in this community, said Kristine Koistinen, Community Development specialist and also acting Economic Development director. Others include likely redevelopment of the dying mall known as Enfield Square; redevelopment of the former Strand Theater into housing; revitalization of the historic Hazardville Institute into a mixed-use facility that will become, among other things, home to the North Central Connecticut Chamber of Commerce; the recent conversion of the former United Presbyterian Church into the new home for the Opera House Players; and the expected arrival next year of L.L.Bean in the Brookside Plaza.

“It’s back to the future. Today, young people … they really aren’t interested in cars the same way that previous generations were; they want to jump on the train. They want to live in places like Thompsonville and jump on the train and go to New York for the weekend or go to Boston.”

“It’s a very exciting time in Enfield; there’s a lot going on and a lot to get excited about,” she said, adding that there are new developments in many different parts of the community, including Thompsonville, Hazardville, the retail district, and others.

Those sentiments apply to one of the community’s largest institutions as well.

Indeed, Asnuntuck Community College, which marked its 50th anniversary this year, is now known as CT State Community College Asnuntuck. It is one of 12 community colleges, some with satellites, that came together in a merger (creating CT State Community College) that has been years in the making, with the goal of bringing a number of advantages and new opportunities to the colleges, but especially students, said Michelle Coach, Asnuntuck CEO.

“What’s amazing for the students is that they apply once, and they can register on any campus anywhere in the state,” she explained. “In the past, we used to share less than 1% of our students among the 12; we now share about 28% of our students.”

But while the merger is generating new opportunities, Asnuntuck and all the other CT State schools are coping with budget cuts, and more dramatic cuts to come in the future unless the governor and Legislature reverse course and increase their overall commitment to public higher education (more on that later).

As for Enfield Square, it has been in a state of deterioration for several years, with the loss of anchors such as Macy’s, JCPenney, and Sears. It was acquired by New York-based Namdar Realty Group in 2019 amid hopes that there would be investment in the facility and the securing of new tenants. However, it has continued to decline, and there is growing speculation that it may be sold to a developer who will raze all or most of what exists and create a mixed-use facility that may include everything from retail to housing.

planned new housing

An architect’s rendering of the planned new housing to take shape at the site of the former Strand Theater.

A few developers have expressed interest, said Bromson, who declined to name them, adding that Enfield Square may follow the same path as Springfield’s Eastfield Mall, which is currently being demolished in favor of new development following the relocation of several dozen mostly smaller tenants. In fact, Koistinen has talked with officials in Springfield about the Eastfield Mall project and the relocation of tenants there.

For the latest installment of its Community Spotlight series, BusinessWest focuses on Enfield, the arrival of rail service, and the many other forms of progress in this community.

 

Train of Thought

Bromson is on his second stint as town manager in Enfield — he held that post from 2019 to 2021, when he resigned, only to return just last month. Overall, he’s spent more than 33 years working for the town in various capacities, including town attorney, Public Safety director, and acting town manager.

For all that time and more, securing a rail stop in town has been a dream and a true priority for the community, for reasons made obvious by looking at similar communities that have a stop. In those cities and towns, development has followed, Bromson noted, adding that there has been significant reversal of the development strategies of the ’50s, ’60s, and ’70s that focused on the automobile and creating infrastructure to support its use.

“It’s back to the future,” he went on. “Today, young people … they really aren’t interested in cars the same way that previous generations were; they want to jump on the train. They want to live in places like Thompsonville and jump on the train and go to New York for the weekend or go to Boston.”

Elaborating, he said Enfield’s station will be more than a metro stop, bringing people to Hartford to work; it will also be a larger hub for Amtrak for more distant destinations. Coupled with the planned spur off the Windsor Locks stop that will bring people to Bradley International Airport, it’s easy to see why a rail station is generating such enthusiasm.

“You can come down to the Enfield station, park — there will be ample parking here — get on the train, take the spur to Bradley, and get on a plane, and never have to deal with the parking or the congestion there,” Bromson said.

the historic Hazardville Institute

Renovation of the historic Hazardville Institute is one of many developing stories in Enfield.

While the rail plans are generating excitement among residents and officials, they are also gaining the attention of the development community, with more interest certainly to come, said those we spoke with.

Bromson said the rail service will likely generate interest in development of more housing, such as the hugely successful Bigelow Commons, now home to more than 2,000 people.

And if more housing becomes reality — and renovation of the former Strand Theater is already set to move off the drawing board — there will be a need for more retail and service businesses, said Koistinen, adding that such need will likely help fill some of the many vacant storefronts and other properties in Thompsonville, but also other parts of the city.

Enfield at a Glance

Year Incorporated: 1683
Population: 42,141
Area: 34.2 square miles
County: Hartford
Residential Tax Rate: $30.56
Commercial Tax Rate: $30.56
Median Household Income: $67,402
Median Family Income: $77,554
Type of Government: Town Council, Town Manager
Largest Employers: Empower Retirement LLC, Town of Enfield, LEGO, Advance Auto Parts Distribution Center, Eppendorf Manufacturing
* Latest information available

“For decades, people have been talking about how we revitalize Thompsonville,” she said. “Having the train come is the first step in all of this; here are several vacant properties there, and having the train station so close — that walkability to the downtown — will provide a real boost.”

Overall, there is a sizable trickle-down effect from the rail service, said Bromson, adding that it will likely extend to places like Enfield Square. Indeed, the station will be an intermodal transit center that will send buses and shuttles to locations such as the shopping areas off I-91.

This includes Enfield Square, he noted, adding that the community is talking to developers about the future of the site, while also working with existing tenants to help promote them and prepare them for eventual transition. “I’m very optimistic that we’re going to have a good result there in the near future.”

 

Course of Action

There have been several good results from the merger of the state’s community colleges, a process that has been in motion for more than seven years now, Coach noted.

The new infrastructure brings benefits for the schools, including additional buying power and greater ability to collaborate and share ideas, concepts, and, yes, students.

Indeed, she said there are students who now attend classes at as many as five different schools, taking advantage of each school’s specialty, such as Asnuntuck’s manufacturing program.

Indeed, Asnuntuck now boasts 1,329 students who call the campus home, and another 886 who call another school home but attend at least one class in Enfield, boosting enrollment and bringing more energy and vitality to the campus.

“If the governor doesn’t give us more money, that’s going to hurt our students — that’s what we’re worried about right now.”

Overall, said the merger has brought about a harmonized processing system across the 12 campuses, while allowing each school to maintain its own identity and culture.

“I’ve always said to the employees, our culture is our people, and we have our people,” Coach said. “We can give our students what they need, and I don’t think we’ve changed. But at the same time, they can now register anywhere, we have some amazing processes, and we just hired a behavioral-health counselor for the first time. We’ve always wanted an in-house counselor, and we haven’t been able to do so. By becoming CT State, every campus is getting at least one counselor.”

The merged system is still only a few months old, she said, adding that it will continue to evolve, hone processes, and bring new opportunities and greater collaboration — something that was missing historically — between the individual campuses and their students.

And greater collaboration will be needed because there are many current budget challenges, and deeper cuts likely to come in the year ahead.

“We are underfunded right now,” she said, noting that the system recently cut $33.6 million for this fiscal year, with Asnuntuck slicing roughly $500,000, in large part because elected leaders would not raise the spending limit for the state.

Asnuntuck was able to avoid personnel cuts this fiscal year, but it may not be so fortunate in FY 2025, when an additional $41.3 million will have to be cut, unless already-intense lobbying efforts succeed in garnering more support from the state.

“If the governor doesn’t give us more money, that’s going to hurt our students — that’s what we’re worried about right now,” she told BusinessWest. “And, of course, these are the students that need the help.”

Analysts Highlight Key Auto Trends That Will Shape 2024

By
high-speed EV chargers
Autos

The Road Ahead

 

high-speed EV chargers

Gary Rome has made a major investment in high-speed EV chargers, with capacity for more when demand increases.

The car-shopping experts at Edmunds say opposing market forces are expected to keep new vehicle sales relatively steady in 2024, forecasting that 15.7 million new cars will be sold. That forecast represents a 1% increase from its estimate of 15.5 million new vehicle sales in 2023. Meanwhile, electric-vehicle (EV) market share is expected to tick slightly higher to 8% of total new vehicle sales in 2024, up from 6.9% in 2023 to date through November.

Jessica Caldwell, Edmunds’ head of Insights, noted that “2023 experienced improved inventory levels from pandemic-era lows combined with pent-up demand to deliver strong sales, estimated up 12.7% year over year. While the year ahead holds the promise of further increased inventory and enticing deals that consumers have eagerly awaited, 2023’s high interest rates are expected to linger, provoking conflicting market dynamics. Automakers specifically will weigh one other key consideration in 2024: are they satisfied with this newly established supply-demand equilibrium, or are they willing and able to push sales volumes closer to pre-pandemic norms?”

Gary Rome, president and CEO of Gary Rome Auto Group, told BusinessWest that carmakers are responding to high interest rates by pushing 0% financing promotions, or close to it. At his two dealerships, he noted that Hyundai is offering 0%, and Kia is offering 0.9%.

“People have been buying the same car, and their payment is $80 to $100 more because of the higher interest rates,” he explained. “So manufacturers are starting to do something about it with low-rate financing.”

Edmunds put together a list of the three biggest industry trends it predicts will shape the road ahead in 2024.

 

New-vehicle Prices Will Plateau

The COVID-19 pandemic spurred a series of significant vehicle price hikes, first from consumers leveraging low interest rates to buy larger, well-equipped vehicles, and later from out-of-whack demand due to supply shortages. But Edmunds data reveals pricing has peaked, as improved inventory has driven incentives back into the market.

Shoppers seeking options on the affordable side of the new-vehicle market, however, will have a tougher time as those vehicles are selling quicker than their more expensive counterparts, the reversal of a trend witnessed from the fall of 2020 through the fall of 2021.

 

EVs Will Continue to Disrupt Brand Loyalty

A lack of consumer brand loyalty creates opportunities for electric-vehicle makers to win over buyers in the still-early stages of EV adoption, considered even more impactful given today’s lower overall sales rates relative to pre-2020 levels.

With brands jockeying for pole position in the EV adoption race, Edmunds’ experts note that shoppers ready to make the switch to electric should see plenty of incentives in 2024, even before tax credits kick in. As of November, EVs saw the largest discounts by powertrain at $2,326 below MSRP on average, compared to an industry average of $1,006 discounted.

Locally, Rome said he carries a lot of electric vehicles, but consumers are still wary about availability of charging stations. Still, he recently installed six high-speed ‘superchargers’ at Gary Rome Hyundai and has capacity for 10 more when the need develops.

“Our percentage of EV sales is only around 10%, so it’s a lot of investment for only 10% of sales,” he added. “When we see a trend toward more EV sales, we’ll certainly invest in more chargers.”

 

Hybrid Sales Share Will Grow Further

Edmunds experts say the transition to full EVs has slowed, and hybrids are the more comfortable choice for the majority of Americans seeking electrified options right now.

According to Edmunds data, hybrid market share increased to 9.7% in November from 4.9% the year prior, representing 99% growth. Over that same time period, EVs increased just 25% in share.

Hybrids are transacting more quickly and at less of a discount than both EVs and pure gas competitors, the report notes. “If you’re on the hybrid versus EV fence and prefer leasing, Edmunds experts suggest EVs could be the way to go due to available inventory, discounts, and rebates. But if you’re a drive-it-until-the-wheels-fall-off shopper and are set on a hybrid purchase, you might be best off placing an order rather than scouring local lots in search of a strong deal.”

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