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SPRINGFIELD — The Cambridge College Springfield Regional Center announced a new Alcohol and Drug Counseling Certificate Program for individuals seeking professional training in substance-abuse and addiction treatment, education, and prevention, leading to certification or licensure.

The one-year, 19-credit certificate program comes at a critical time as the region battles the opioid epidemic and other increasing substance-abuse issues.

“The need for credentialed individuals in this field is at a crisis level,” said Teresa Forte, director of the Springfield Regional Center. “By offering this certificate program, Cambridge College will help provide a direct response to that need while supporting our community.”

An open house for individuals interested in the program will be held on Wednesday, July 27 at 6 p.m. at the college’s Tower Square location, 1500 Main St. in downtown Springfield.

The Springfield campus offers undergraduate- and graduate-degree programs in education, human services, counseling psychology, and business management to a diverse population of adult learners from Western Mass. and Connecticut. Its students are adults in career transition, busy parents who require flexible schedules, community leaders, and others seeking professional development.

For more information about Cambridge College Springfield or to RSVP for the open house, visit www.cambridgecollege.edu.

Daily News

WATERBURY, Conn. — Webster Financial Corp., the holding company for Webster Bank, N.A., announced earnings applicable to common shareholders of $48.4 million, or $0.53 per diluted share, for the quarter ended June 30, 2016, compared to $49.8 million, or $0.55 per diluted share, for the quarter ended June 30, 2015. The second quarter of 2015 included a $3.7 million net tax benefit, or $0.04 per diluted share.

“Double-digit loan growth once again propelled strong revenue growth as Webster bankers continued to excel in service to businesses and consumers,” said James Smith, chairman and CEO. “Loan originations in excess of $1 billion, coupled with exceptionally strong credit metrics, helped overcome margin pressure from today’s historically low interest-rate environment to produce another solid quarter.”

Highlights for the second quarter of 2016 compared to the second quarter of 2015 included revenue of $242.0 million, an increase of 8.6%, including a record level of net interest income of $176.9 million; loan growth of $1.5 billion, or 10.1%, with growth of $1.1 billion in commercial and commercial real-estate loans; deposit growth of $1.5 billion, or 8.9%, with growth of $1.1 billion in transactional and health savings account deposits; efficiency ratio (non-GAAP) of 61.47%; and
annualized return on average tangible common shareholders’ equity (non-GAAP) of 11.25%.

“Ongoing strategic investments in our businesses, along with continued expense discipline, are designed to maximize shareholder value over time,” said Glenn MacInnes, executive vice president and chief financial officer.

Daily News

EAST LONGMEADOW — HUB International New England, a division of HUB International Limited, a global insurance-brokerage, risk-advisory, and employee-benefits firm, announced the hiring of Karla Callahan as an employee benefits client relationship manager in the East Longmeadow office.

Callahan has an extensive background in employee benefits and was previously employed by Health New England for more than 12 years, specializing in sales, underwriting, and member services.

As part of the HUB employee benefits team, she will be responsible for assisting staff with client relations, service, sales, and administrative activities of new and existing group benefit accounts. Working closely with employers to maintain and better understand their employee-benefits packages and staying abreast of compliance restrictions and guidelines will be her other areas of focus.

Daily News

GLASTONBURY, Conn. — United Financial Bancorp Inc., the holding company for United Bank, announced results for the quarter ended June 30, 2016.

The company had net income of $9.1 million, or $0.18 per diluted share, for the quarter ended June 30, 2016, compared to net income for the linked quarter of $11.9 million, or $0.24 per diluted share. Operating net income (non-GAAP) for the second quarter of 2016 was $10.0 million, or $0.20 per diluted share, compared to $10.9 million, or $0.22 per diluted share, for the linked quarter.

Operating net income for the second quarter of 2016 is adjusted for purchase accounting impacts, net gain from sales of securities, and the effect of position eliminations as a result of the company’s previously disclosed reorganization plan. Additionally, in the first quarter of 2016, operating income was also adjusted for Federal Home Loan Bank of Boston pre-payment penalties. The company reported net income of $13.3 million, or $0.27 per diluted share, for the quarter ended June 30, 2015.

“In the second quarter of 2016, operating revenue increased 2%, but operating net income declined to $0.20 per diluted share from $0.22 per diluted share for the linked quarter. Despite record-low interest rates, our operating net interest margin declined only one basis point, and we maintained strong expense discipline, evidenced in our ratio of operating non-interest expense to average assets at 2.08%. Management remains focused on its previously disclosed four key objectives to enhance shareholder value in this difficult operating environment for banks. Tangible book value per share increased to $10.39 from $10.20 after paying a dividend of $0.12 per share. Asset quality remains strong and non-interest bearing deposits increased by 10% year over year,” said William Crawford IV, CEO of the bank and the holding company. “In addition, I want to thank our talented employees for their continued steadfast focus on serving our customers and communities.”

Total assets at June 30, 2016 increased by $95.8 million to $6.42 billion from $6.32 billion at March 31, 2016. At June 30, 2016, total loans were $4.73 billion, representing an increase of $81 million, or 2%, from the linked quarter. Loan growth during the second quarter of 2016 was highlighted by a $58 million, or 9%, increase in commercial business loans; a $14 million, or 3%, increase in home-equity loans; and an $8 million, or 2%, increase in owner-occupied commercial real-estate loans. Residential mortgages declined during the second quarter of 2016 by $5 million, reflecting the company’s continued strategy to reduce on-balance sheet exposure to residential mortgage loans.

Deposits totaled $4.46 billion at June 30, 2016 and decreased by $79 million, or 2%, from $4.53 billion at March 31, 2016. While deposits declined during the second quarter of 2016, the shift in the deposit mix is reflective of the company’s strategy to focus on low-cost core deposit growth. Noteworthy increases include a $16 million, or 3%, increase in non-interest bearing deposits and a $32 million, or 8%, increase in NOW checking deposits. Deposit balances were substantially impacted during the second quarter of 2016 by the seasonal outflows of municipal deposits, and, to a lesser extent, retail money-market account outflows were experienced due to the expiration of promotional pricing.

Daily News

SPRINGFIELD — Nancy Creed, vice president of Marketing and Communications for the Springfield Regional Chamber, has been tapped to succeed Jeffrey Ciuffreda as president of that institution. She will be the first woman chief executive in the chamber’s more than 125-year history.

Creed has more than 20 years of leadership experience and has served in her current position for more than four years. She had previously served in a similar role with the chamber from 1992 to 2001. She played an integral role in the recent chamber restructuring and was responsible for its rebranding effort.

The chamber has received the Best Chamber of Commerce honors by the Republican/MassLive Reader Raves poll since the inception of the category in the public online poll; has received higher than national averages for membership retention, renewal, and satisfaction; and has developed programs which have tripled in attendance and yielded a 95% satisfaction rate.

Prior to rejoining the chamber in 2012, Creed owned N.F. Creed Communications, a strategic communications consulting firm, specializing in public-relations campaign development and management, grassroots cultivation, media relations, crisis communications, and government/community affairs, where her clients included local and regional nonprofit and for-profit companies as well as Fortune 500 companies.

She also served as the manager of Corporate Communications for Western Massachusetts Electric Co. (now Eversource). During her tenure, the company was awarded the top ranking in the Eastern Region by JD Power & Associates for communications in its annual Business Customer Satisfaction Survey, and was awarded the Utility Communications International Gold Award for Single Magazine Advertising.

Creed is a graduate of the S.I. Newhouse School of Public Communications at Syracuse University, is certified in nonprofit-organization management through the U.S. Chamber of Commerce Institute for Organization Management, a graduate of the chamber’s Leadership Institute, and a certified company facilitator of the Pacific Institute’s Imagine 21 – Fast Track to Change.

She has been named to the Top Ten Women in Business in the Pioneer Valley by the Women Business Owners Alliance and was named a Woman to Watch in Advertising by Western Mass Women magazine. She is currently president of the board of directors for Dakin Humane Society, a member of the board of directors for the Valley Press Club, and a former board member of the Ad Club of Western Massachusetts.

Ciuffreda has announced that, after 29 years with the chamber, he will retire from his position, effective Aug. 5.

“Jeff has been an invaluable asset to the chamber throughout these many years, providing steady leadership over the years, including steering the organization through its most recent restructuring, positioning the chamber as the go-to organization for legislative advocacy, and working hard on behalf of our more than 700 members and for the region at large,” said chamber board chair Daniel Keenan, senior vice president of Government and Community Relations with the Sisters of Providence Health System. “I know I speak for the entire board in expressing my thanks for Jeff’s leadership, his commitment and dedication to the organization, and his distinguished career with the chamber.”

Ciuffreda joined the chamber in 1987 as its vice president of Legislative Affairs and became president in 2011. Under his leadership, the chamber has been a strong voice for business, increased its regional presence, helped shape policy on Beacon Hill and in Washington, helped drive economic growth in the city of Springfield and the region as a whole, and worked to build a prosperous and healthy economic climate for those who live and work in the region.

Prior to joining the chamber, Ciuffreda served as a legislative aide and district director to the late U.S. Rep. Silvio Conte for eight years. Prior to that, he served as a deputy director of the U.S. Peace Corps program in the country of Lesotho, where he oversaw the administration of the program and was responsible for the programming and training of volunteers. From 1972 to 1975, Ciuffreda served as a volunteer in the Peace Corps in the country of Liberia.

Ciuffreda received a bachelor’s degree in accounting from Boston College and is certified in nonprofit organization management through the U.S. Chamber of Commerce Institute for Organization Management. He serves on numerous boards, including the Mass. Assoc. of Chamber of Commerce Executives, Friends of the Homeless, and the United Way of Pioneer Valley. He is a former selectman in the town of Williamsburg, a position he held for more than 17 years.

Daily News

SPRINGFIELD — Attorney Carol Cioe Klyman and Attorney Ann Weber have been recognized for their work on the 2016 Massachusetts Elder Law Sourcebook & Citator. Published by Massachusetts Continuing Legal Education (MCLE), the sourcebook is an important reference source in the growing fields of elder law and special-needs planning in Massachusetts.

The sourcebook represents the editors’ selections of key reference materials from state and federal sources. It contains primary sources that are called upon daily in the representation of the Massachusetts elder and disabled populations, including statutes, regulations, case decisions, and community resources.

The sourcebook would not have been possible without the editorial leadership of Klyman and Weber, said Maryanne Jensen, MCLE’s director of Publications. “They share MCLE’s goal to educate practitioners and others who advocate for, represent, and advise individuals facing the vicissitudes of aging and incapacity.”

Klyman and Weber are shareholders at Shatz, Schwartz and Fentin, P.C., with offices in Springfield, Northampton, and Albany, N.Y. Klyman concentrates her practice in the areas of elder law, estate planning, special-needs-trust planning, estate settlement, guardianships, trust and estates litigation, and MassHealth appeals. Weber concentrates her practice in the areas of estate planning, estate administration, probate, and elder law. She has a particular interest in creative estate planning for authors, artists, farmers, and landowners, as well as federal and Massachusetts estate-tax planning.

Attorneys may purchase the 2016 Massachusetts Elder Law Sourcebook & Citator in print version or as an e-book or e-article through the MCLE website, www.mcle.org.

Daily News

SPRINGFIELD — Skoler, Abbott & Presser, P.C., a labor and employment law firm serving employers in the Greater Springfield area, announced that attorney Amelia Holstrom earned the Community Service Award presented by the Massachusetts Bar Assoc. and subsequently through its affiliate association, the Hampden County Bar Assoc. It is awarded to worthy attorneys who are members of both their local and state bar associations, and who have demonstrated excellence in community service.

“The Western Massachusetts community has given so much to me throughout the years,” Holstrom said. “That is why I think it is so important to give back to my community. I am honored to have been presented with this Community Service Award. The award truly speaks volumes about the atmosphere that I work in. Everyone at Skoler Abbott is extremely supportive of community-service initiatives and understands the value of extending a helping hand to others.”

Holstrom joined Skoler, Abbott, & Presser after serving as a judicial law clerk to the judges of the Connecticut Superior Court, where she assisted with complex matters at all stages of litigation. Her practice is focused in labor law and employment litigation. Since joining the firm in 2012, Holstrom has provided legal advice to employers who want to remain union-free and defended employers against claims of discrimination, retaliation, harassment, wrongful termination, and actions arising under the Family Medical Leave Act and wage-and-hour law. Additionally, she frequently provides counsel to management regarding litigation-avoidance strategies.

Holstrom is a 2011 graduate of Western New England University School of Law, where she was the managing editor of the Western New England Law Review. She is a 2015 recipient of the 40 Under Forty award from BusinessWest, which honors individuals under age 40 who have achieved professional success and are active in civic organizations.

In addition to her legal résumé, Holstrom is very active in the community. She is an ad hoc member of the personnel committee for the Food Bank of Western Massachusetts, a member of the board and executive committee for Girl Scouts of Central and Western Massachusetts, and board clerk at Friends of the Homeless.

Daily News

SPRINGFIELD — U.S. Rep. Richard Neal, dean of the New England congressional delegation, will hold a press conference today in Springfield to release the Northern New England Intercity Rail Initiative, a study funded by the Federal Railroad Administration and requested by Neal and former U.S. Rep. John Olver to identify and improve rail service in the region, including Springfield to Boston.

At the 2 p.m. event in the Jury Room of the U.S. District Courthouse, 300 State St., Neal will be joined by Astrid Glynn, Rail & Transit administrator at the Mass. Department of Transportation; and Tim Brennan, executive director of the Pioneer Valley Planning Commission.

The Northern New England Intercity Rail Initiative (NNEIRI) is a conceptual planning study that examines the benefits, opportunities, and impacts of adding more frequent and higher-speed inter-city passenger rail service on two rail corridors, the inland route and the Boston-to-Montreal route.

The inland route would run between Boston and New Haven, Conn. via Springfield. The Boston-to-Montreal route would run between Boston and Montreal, Quebec via Springfield. The two routes would share the trackage between Boston and Springfield. The combination of these two rail routes defines the study area that is collectively identified as the NNEIRI Corridor.

The NNEIRI study was developed jointly between the Mass. Department of Transportation and the Vermont Agency for Transportation with support from the Federal Railroad Administration (FRA). Additional stakeholders included the Connecticut Department of Transportation, the New Hampshire Department of Transportation, the Quebec Ministry of Transportation, private-sector railroads, and regional planning agencies.

“More than 2 million people live within three miles of a station along this corridor,” said FRA Administrator Sarah Feinberg. “For everyone to move safely and efficiently, this region needs a robust rail system, and this blueprint will help achieve that goal.”

Daily News

SPRINGFIELD — White Lion Brewing Co., in alliance with MGM Springfield, announced it will allocate partnered resources to expand and introduce new programming to the Springfield Jazz & Roots Festival on Saturday, Aug. 6.

Over the past few years, MGM has supported several events that attract hundreds of people to the downtown area, including last year’s Valley Fest. The alliance with White Lion to co-sponsor the 2016 Jazz & Roots Festival will help to further the collective mission of revitalizing Springfield through fun and diverse programming.

“MGM Springfield is proud to co-sponsor this year’s Jazz & Roots Festival, and watch it grow to be bigger and better than ever,” said Mike Mathis, president and COO of MGM Springfield. “Ray Berry and his team at White Lion Brewing Company share our values and passion for creating a sense of community and pride in the city of Springfield. We look forward to coming together with all of the participating organizations to deliver a great summer event for all to enjoy.”

White Lion Brewing Co., which launched in late 2014, is Springfield’s first craft-beer brand. White Lion introduced its signature event, Valley Fest, in 2015, with 51 participating craft brands, live entertainment, vendors, a home-brewing competition, and food-pairing demonstrations catering to 1,400 festival goers.

The Springfield Jazz & Roots Festival was developed by Blues to Green Inc. in partnership with business, civic, and nonprofit leaders in Springfield, with the hope that people of many different communities could unite in the urban center of Western Mass. to share their love for music and art.


“Springfield is on the rebound, and its renaissance will have many contributors,” said event coordinator Evan Plotkin. “The Springfield Jazz & Roots Festival is one very prominent example of one. Its primary contribution is to help change the psychology of the city and remind people of our incredible musical heritage and promote interest of its unique culture and diversity of people. Because of this alliance, the festival will be able to offer additional programming.”
Specifically, it aims to:

• Expand free jazz and roots music-education programs, presenting music labs and master classes allowing students from Springfield schools to receive advanced instruction or learn about the history of the music from legendary musicians;

• Develop a new indoor venue with activities that provide greater interaction with artists, explore the roots of jazz and American music, and spotlight the voices of Springfield; and

• Further develop participatory arts, allowing festival attendees of all ages to participate in hands-on creative activities.

In addition to expanded programming, there will be other attractions to enrich the overall experience. White Lion will coordinate two on-site beer gardens, and a food-truck area will be dedicated to the event.

 Visit www.springfieldjazzfest.com for event details, ongoing updates, and sponsorship opportunities.

Daily News

PITTSFIELD — Community Health Programs (CHP) will assume sponsorship and operation of Berkshire Medical Center’s (BMC) Dental Clinic, following the awarding of a $350,000 federal grant to CHP. This collaboration between CHP and Berkshire Health Systems (BHS) will help provide improved access to essential healthcare services in the Berkshire community. CHP will assume the operation of the clinic, located at 510 North St. in Pittsfield, by Oct. 14.

The CHP Dental Clinic will provide expanded dental-care services to more patients in the community; currently, the clinic provides care for nearly 5,000 patients per year. CHP will work to recruit new dentists, and the clinic will continue to utilize the expertise of the BMC Dental Residency program, which helps to staff the clinic. The residency is accredited by the American Dental Assoc. and provides advanced education in oral healthcare.

Community Health Programs will upgrade and expand the dental clinic to meet requirements of the grant, and will integrate dental operations with the existing CHP primary-care practice there, CHP – Neighborhood Health Center.

This is the latest collaboration between CHP and BHS, all with the goal of providing expanded access to healthcare services. In December, CHP assumed operation of the former Adams Internists and Northern Berkshire Family Medicine, giving the federally qualified health center’s network a presence in northern Berkshire County. Previously, the former BMC Neighborhood Health Center in Pittsfield was transitioned to a CHP federally qualified health center. The latest federal grant was awarded by the Health Resources Services Administration, which provides about 20% of CHP’s funding.

“Berkshire Health Systems is pleased to continue our collaborative relationship with Community Health Programs as we work together to provide enhanced care services to all who live and work in the Berkshires,” said David Phelps, president and CEO of Berkshire Health Systems. “CHP and BHS continue to invest in these essential health services to provide greater access to care right here in the Berkshires.”

Lia Spiliotes, interim CEO of Community Health Programs, said CHP will carry on the BMC practice with few changes, aside from a facility expansion and certain federally mandated improvements. The affiliation makes good sense for the organization, which already operates a Great Barrington-based dental practice, she said.

“CHP has made some excellent strategic collaborations to strengthen its health network throughout Berkshire County and to improve residents’ access to healthcare, with support from BHS,” said Spiliotes. “With this new dental clinic under our umbrella, CHP is now in a position to focus strongly on existing practices and services, and to make improvements wherever possible to enhance patient care and improve access.

In addition, the affiliation will expand CHP’s participation in medical-education and residency programs.

The clinic is staffed by resident dentists from the BMC program, three dental assistants, and a receptionist who is also certified as a dental assistant. There will be no changes in employment when CHP assumes the operation of the clinic.

Patients with urgent dental needs may be seen on a walk-in basis. Patients seeking comprehensive, preventive care should call the dental clinic for an initial-visit appointment. At this first visit, patients will have a full-mouth series of radiographs taken, and a comprehensive exam will be completed. An individual care plan will be developed by the resident dentist with patient involvement. Patients will be seen by appointment for all routine dental needs. For more information and appointments, call (413) 447-2781.

Daily News

SPRINGFIELD — In 2015, the National Center for Missing & Exploited Children (NCMEC) assisted law enforcement with more than 13,700 cases of missing children. Seeing the worth of increased awareness of the importance of safety for children, businesses throughout the Pioneer Valley have teamed up to produce an educational event.

The eighth annual Kids Safety Expo, slated for Saturday, July 30, will be free and open to the public. Event organizers include Market Mentors, LLC; 94.7 WMAS; Sports Radio 1450 the Hall; and the Masonic Youth Child Identification Program. Additionally, the event will feature complimentary bicycle helmets for the first 500 children attending, thanks to the generosity of AAA.

“We are grateful to partner with local businesses throughout Western Massachusetts. Initiatives like the Kids Safety Expo aid parents and give them valuable resources to keep their children safe,” said Michelle Abdow, president of Market Mentors, the full-service advertising agency and producer of the event. “We want children from our region to become the thought leaders of our next generation. The first step in making this happen is teaching kids the importance of safety education. The next step is to show kids the value of giving back to the community. This is something that is near and dear to our hearts at Market Mentors.”

For more information and pictures from past years’ events, visit kidssafetyexpo.com.

Daily News

HOLYOKE — SPARK Holyoke, a program of the Greater Holyoke Chamber of Commerce Centennial Foundation, announced its third community-based crowd-funding event, Holyoke Soup, scheduled to take place on Wednesday, Aug. 3 from 5 to 8:30 p.m. at the Waterfront Tavern, 920 Main Street, Holyoke.

Holyoke Soup is a dinner celebrating and supporting creative projects in Holyoke. For $5, attendees receive soup, salad, and bread while listening to presentations ranging from business ideas, art, urban agriculture, social justice, social entrepreneurs, education, technology, and much more. A new element has been added to this Holyoke Soup. Several local entrepreneurs who have completed the SPARK Holyoke entrepreneurship program will be showcasing their businesses beginning at 5 p.m.

Immediately following the SPARK Holyoke presentations, the Holyoke Soup presentations will begin. Each presenter has four minutes to share their idea and answer four questions from the audience. This is a great opportunity to meet local entrepreneurs, have a bite to eat, network, and vote on the project that would be most beneficial to the city of Holyoke. At the end of the night, the ballots are counted, and the winner goes home with all the money raised to help fund their project. Winners come back to a future Holyoke Soup dinner to report on their project’s progress.

There is no admission charge to the event, but a minimum $5 donation is requested. All proceeds go to the presenter who receives the most votes. Anyone interested in presenting an idea at Holyoke Soup may apply at www.holyokesoup.com. Call Jona Ruiz at SPARK Holyoke at (413) 534-3376 with any questions.

Daily News

CROMWELL, Conn. — Local organizations banded together to support STEM education in Connecticut while making a positive difference in the community. The ACT Group, Mystic Aquarium, and Mystic Middle School, with assistance from 3D Systems, designed and produced an orthopedic boot for Purps, an African penguin and life-long resident of the aquarium.

In 2011, Purps was left with a non-functional flexor tendon following an altercation with another penguin on exhibit. Since then, she has been wearing a traditional hand-casted boot to support her injury. While the traditional boot adequately immobilized, supported, and protected her injury, it posed some concerns for the veterinarian staff at the aquarium. The moldable plastic material it was made of deteriorated quickly, forcing the veterinarian staff to reproduce the boot frequently, a very time-intensive process.

The collaboration between local organizations began when Sue Prince, library media specialist at Mystic Middle School, started an innovation lab with the goal of introducing students to 3D technology. She applied for and won a grant from the Stonington Education Fund and used the funds to purchase a 3D printer for the lab.

Prince worked in conjunction with Kelly Matis, a member of Stonington Education Fund’s community board and director of Education and Conservation at Mystic Aquarium. Matis, aware of the diverse applications of 3D technology, shared the need for a new orthopedic boot for Purps with Prince. Eager to help and put the 3D printer to use for a great cause, Prince contacted the ACT Group to inquire about assistance with computer-aided design (CAD) and 3D scanning.

Nick Gondek, ACT Group’s director of Additive Manufacturing, led his team in demonstrating state-of-the-art 3D technology to Prince and her students. These demonstrations gave the students of Mystic Middle School invaluable hands-on experience using technology from 3D Systems and allowed the ACT Group to provide technical expertise through the course of the project. The ACT Group’s assistance was a crucial part of the successful design of Purps’s boot, ultimately completed by the students of Mystic Middle School.

 

 

“It was so rewarding to teach the students how end-to-end manufacturing solutions by 3D Systems work,” noted Gondek. “Helping to stimulate creative thinking through the use of 3D technology is a way for us to pay it forward at the ACT Group,” he concluded.

“It’s been truly amazing to be able to work with the middle-school students, the ACT Group, and their 3D technology, as well as veterinarian staff here at the aquarium,” Matis said, “and to use this 3D technology to benefit the health of one of our endangered species.”

Impressed by the dedication and eagerness of the students, the ACT Group hopes this project inspires other educators to infuse 3D-printing technology within their STEM curricula to inspire future innovators.

Daily News

BOSTON — For the second consecutive year, the Baker-Polito administration reduced the assessment rate employers pay to the state on workers’ compensation insurance policies.

For fiscal year 2017, employers will pay an assessment of 5.6% on their total insurance premium, a 3% decrease from the previous rate of 5.75%. The new rate went into effect July 1.

The Department of Industrial Accidents (DIA), an agency within the Executive Office of Labor and Workforce Development, administers the workers’ compensation insurance system and annually establishes assessment rates. During fiscal year 2016, the Baker-Polito administration reduced the rate from 5.8% to 5.75%.

“We are very pleased that we can lower this assessment rate to businesses once again this year,” Labor and Workforce Development Secretary Ronald Walker II said. “After reviewing the current assessment rate and the fund balance, we determined it was possible to reduce the rate again.”

Added DIA Director Linda Turner, “the reduction in the DIA assessment rate for the second year in a row is a clear statement of this administration’s efforts to reduce costs for businesses in the Commonwealth.”

The state workers’ compensation system is in place to make sure workers are protected by insurance if they are injured on the job or develop a work-related illness. Under this system, all employers in Massachusetts are required by state law to carry workers’ compensation insurance covering their employees. The insurance pays for any reasonable and necessary medical treatment for a job-related injury or illness, pays compensation for lost wages after the first five calendar days of full or partial disability, and in some cases provides retraining for employees who qualify.

DIA is funded through assessments on workers’ compensation policies and self-insurance programs for employers operating in Massachusetts. In addition, DIA collects statutory fines and fees. It also acts as a court system responsible for resolving disputed workers’ compensation claims, overseeing and adjudicating approximately 12,000 disputed cases each year.

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SPRINGFIELD — Springfield College Professor of Management and U.S. Fulbright grant recipient Robert Fiore recently traveled to China to collaborate with faculty and students at Hong Kong Baptist University in the academic area of entrepreneurship. Fiore assisted in the development of research and curriculum in China’s new initiative mandating the development of entrepreneurial courses to be offered at all universities.

During his visit, Fiore presented his entrepreneurial and international business publications fostering cross-cultural discussions on entrepreneurial issues; research about company formulation, feasibility analysis, and ways to enhance success rates; the U.S. perspective on capital formation; the capital-allocation process; financing sources; standards of equity investing in entrepreneurship; and rates of return generated by successful entrepreneurship.

“The collaboration was exciting because it allowed us to exchange ideas on modes of entrepreneurial company formulation specifically dedicated to elevate geographically focused poverty and enhance economic growth within low-income regions by the use of micro-financing and village-based cooperative entrepreneurship,” said Fiore, who was hosted by Michael Young, the chair of Hong Kong Baptist University’s Management Department. “I was also able to review the practicality of the new Hong Kong Baptist University Entrepreneurship Centre.”

As part of the program, Fiore presented biographical material of notable entrepreneurs to highlight their use in teaching and fostering entrepreneurship among students by analysis of the successful entrepreneur’s attitudes and behavior. He discussed lean entrepreneurial start-up procedures and methods as taught in the U.S., the U.S. perspective on crowd-funding financing sources, and legal issues of intellectual-property development.

Springfield College has a lengthy association with Hong Kong Baptist University. This project deepened the relationship between the institutions by exploring and formulating more opportunities for cross-country student and faculty exchange programs in the areas of entrepreneurship, global international business, and management. As a continuation of this strong partnership, Fiore is expecting to allow his students to collaborate with Chinese students via Skype during the upcoming semester.

The core Fulbright U.S. Scholar Program is led by the U.S. Department of State, Bureau of Educational and Cultural Affairs, and provides approximately 800 teaching and/or research grants to U.S. faculty and experienced professionals in a wide variety of academic and professional fields. The program awards grants to qualified U.S. faculty and professionals in select disciplines to engage in collaborative projects at eligible institutions in more than 140 countries worldwide.

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BOSTON — More than 400 Massachusetts Realtors traveled to the State House on June 21 to participate in the 31st annual Realtor Day on Beacon Hill. The Realtors attended meetings and visited with lawmakers to discuss the key issues that impact consumers, housing, and the economy. The keynote address was delivered by Lt. Gov. Karyn Polito.

“The huge showing of Realtors from across the state made the statement that our members are willing to speak up for their industry, private property rights and home buyers and sellers,” said 2016 MAR President Annie Blatz, branch executive at Kinlin Grover Real Estate on Cape Cod. “We want to remind our legislators that keeping the American dream of homeownership accessible and affordable is a priority.”

The Realtor Assoc. is the only group that actively represents homeowners and future homeowners to advocate for private property rights in Massachusetts.

“It is imperative we connect with our lawmakers to ensure they understand the issues that face the real-estate industry and their constituents — many of whom are home and property owners,” said Lou Mayo, president of the Realtor Assoc. of Pioneer Valley (RAPV).

Added Richard Sawicki, president-elect of RAPV, “supporting homeowners and property owners through smart legislation is so important for families, communities, and the state’s economy, so we will continue to work with lawmakers to ensure they are protected.”

Twenty-nine members and staff from the Realtor Assoc. of Pioneer Valley participated. The Pioneer Valley delegation included Al Acuna, Elias Acuna, Maria Acuna, Kelly Bowman, Shawn Bowman, Carolanne Bright, Maureen Coughlan, Peter Davies, Greg Dibrindisi, Michael Dombrowski, Patti-Ann Dombrowski, Sue Drumm, Corinne Fitzgerald, Christine Garstka, Sara Gasparrini, Shelley Gutowski, Dawn Henry, Sharyn Jones, Susan Mangan, Lou Mayo, Sue Moore, Sonia Quiles, Brian Risler, Russ Sabadosa, Rick Sawicki, Ben Scranton, Brian Sears, Christie Shea, and Clinton Stone.

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PITTSFIELD — Berkshire Bank recently named three ‘top volunteers’ through its Volunteer Service X-ellence Awards Program. These annual awards celebrate bank employees who have made outstanding contributions to their communities.

The three award recipients were selected based on their strong record of volunteerism to nonprofit organizations through both company-supported activities and in individual service to the broader community. Each of the award winners also received a $1,000 donation to be made on their behalf to the nonprofit organization of their choice.
This year’s Volunteer X-ellence Award winners include:

• Dan Elias, teller, Pittsfield. Elias received the Volunteer Service X-ellence Award for his individual volunteer service outside the bank’s corporate program. His donation was made to the Catholic Youth Center.

• LeeAnn Morrone, branch officer, Newington, Conn. Morrone received the Volunteer Service X-ellence Award for her leadership and service in both company-supported and individual volunteer activities. Her donation was made to the Peter J. Lavery Memorial Scholarship Fund.

• Matt Nicholl, business banking officer, Utica, N.Y. Nicholl received the Volunteer Service 
X-ellence Award for his leadership and participation in the bank’s corporate volunteer program. His donation was made to the United Way of the Valley & Greater Utica.

Daily News

SHEFFIELD — Berkshire Taconic Community Foundation’s HousingUs initiative is soliciting proposals from nonprofits, community organizations, and public agencies to plan and convene outreach activities that bring residents together to explore the interrelated issues of affordable housing, economic development, and town-center vitality.

Grants of up to $10,000 will be available for projects that result in action-oriented community-development strategies or create broader public awareness of the elements of healthy and resilient communities, including the availability of affordable housing. Only collaborative proposals with one lead applicant and at least one other partner will be considered. Organizations serving Berkshire County, Mass.; Columbia County and Northeast Dutchess County, N.Y.; and Northwest Litchfield County, Conn., are eligible.

The deadline for submitting proposals is Friday, Aug. 26. For more information, visit www.berkshiretaconic.org/housingus.

Daily News

HOLYOKE — The planning committee for Celebrate Holyoke 2016 announced the musical lineup for this year’s three-day summer festival on Aug. 26-28, highlighting a diverse range of musical favorites from around the region.

“We’re really excited about this year’s lineup of musical acts and are looking forward to welcoming an even bigger crowd to downtown Holyoke,” said Jenna Weingarten, Celebrate Holyoke’s executive director. “It was important to us that our lineup reflected Holyoke’s diverse community, and we’ve worked hard to make sure there’s something here for everyone to enjoy.”

Music will begin on Friday night at 5 p.m. and last throughout the weekend until Sunday at 7:30 p.m. and includes the following bands and artists: Friday, Aug. 26, 5-11 p.m.: Basement Cats, Sweet Daddy Cool Breeze, Jesus Pagan y Conjunto Barrio, and Joe Velez Creacion Latin Big Band; Saturday, Aug. 27, 12:30-11 p.m.: From the Woods, Skarroñeros, Paper City Exiles, Franny O Show, Trailer Park, Pabon Salsa, Eleven, and Brass Attack; Sunday, Aug. 28., 12:30-7:30 p.m.: Dennis Polisky & the Maestro’s Men, Union Jack, Los Sugar Kings, Dee Reilly, and Ray Mason Band.

Celebrate Holyoke is a weekend-long festival featuring live music, entertainment, and vendors. Last year, the festival drew approximately 15,000 people into the heart of downtown Holyoke over the course of three days. Slide the City, an internationally known, 1,000-foot slip and slide, will return to Celebrate Holyoke on Saturday, Aug. 27.

Volunteers and sponsors are still needed and are critical in ensuring the success of Celebrate Holyoke. Anyone interested in being a part of this community event should call (413) 570-0389 or e-mail [email protected].

Daily News

GREENFIELD — The 11th annual “It’s Blooming Backpacks” backpack and school-supply drive is underway by the Women’s Way, a program of United Way of Franklin County.

Every August, Women’s Way and community supporters of the popular event come together at Historic Deerfield to socialize, while supporting the needs of local school-age youth. This year’s main event is Thursday, Aug. 4 from 5:30 to 7 p.m., and costs $5 to attend, in addition to bringing one or more backpacks filled with school supplies (the address location will be given at the time of RSVP). To RSVP, call (413) 772-2168 or email [email protected]. Backpacks filled with essential school supplies are distributed to children and youth throughout Franklin County via the United Way of Franklin County’s 27 partner agencies.

Backpacks come to the United Way in different ways. Traditionally, an individual donor will take on the task of buying and filling a backpack. Other ways include groups of co-workers or friends collaborating on filling a few bags; companies donating supplies or empty backpacks; businesses and organizations holding school-supply drives in the workplace; asking employees, customers, and clients to donate supplies and/or backpacks (sometimes the company will buy the backpacks) and having a ‘stuffing party’; and collecting monetary donations and letting the United Way purchase backpacks and/or supplies. No matter how you participate, you will make a difference in the life of a young person.

Since the first annual “It’s Blooming Backpacks” in 2005, more than 2,500 backpacks with a value of nearly $200,000 have been donated and distributed. In 2015, nearly 500 backpacks were collected. For more information, visit uw-fc.org/its-blooming-backpacks, call (413) 772-2168, or e-mail [email protected].

Daily News

PITTSFIELD — Berkshire Bank announced that its charitable foundation awarded $1,120,862 in grants from Jan. 1 through June 30 to nonprofit organizations across Massachusetts, New York, Connecticut, and Vermont.

In addition to supporting organizations within the foundation’s funding focus areas of education, community, and economic-development projects, it also donated to youth, cultural, and human-service organizations that provide vital services to the community. Berkshire Bank Foundation Inc. plans to award more than $1.8 million this year to nonprofit organizations across the bank’s service area.

In total, 365 nonprofits received grants from the foundation during the first half of 2016, including Berkshire County organizations 1Berkshire Strategic Alliance Foundation, Berkshire Community Action Council, Berkshire Family YMCA, and Central Berkshire Habitat for Humanity; and Pioneer Valley organizations Baystate Health Foundation, Brightside for Families & Children, Chicopee Neighborhood Development Corp., and ReGreen Springfield.

Daily News

SPRINGFIELD — American International College (AIC) will become one of the first local institutions of higher education to become SAT- and ACT-optional beginning in the spring semester of 2017. This will include all applicants for all majors.

A growing trend nationally, more than 850 schools, including big names such as George Washington, Wesleyan, and Fairfield universities, are now test-optional. Thirty-five schools in Massachusetts are on board.

In a study conducted by the National Assoc. for College Admission Counseling, college performance was evaluated for more than 100,000 students at 33 test-optional colleges. It was determined that the differences in college performance of those students who submitted SAT scores and those who did not were negligent in terms of grade point averages and graduation rates. The study also found that those students who did not submit SAT scores were more likely to be first-generation-to-college applicants, minority students, women, Pell grant recipients, and students with learning differences.

“Moving to test-optional admissions is core to our mission of educational access for first-generation students and students from underserved backgrounds,” said Dean of Undergraduate Admission Jonathan Scully. “We’re invested in our students’ success and recognize that standardized tests don’t typically serve those populations well. There is a direct correlation between test scores and economic resources. Students who have the financial means to afford test preparation will do better than those who don’t. We shouldn’t be basing our admission decisions on test scores. It’s important to look at the whole student.”

A multi-year study at AIC determined that high-school success is two to three times more predictive of retention and college success than standardized test scores. High-school success includes rigorous courses and good grades, meaning a heavy academic course load at the highest level in which the student will excel. In addition, AIC looks for well-rounded students, excelling outside of the classroom as well — in other words, an individual who will be an outstanding member of not only the AIC community, but also the community at large.

For more information about American International College, visit www.aic.edu or call (413) 205-3201.

Daily News

MONSON — Monson Savings Bank will host a complimentary SunAmerica workshop titled “Protecting Your Retirement Income for Life” on Wednesday, July 27. It will be presented by Mack Mikaelian, divisional vice president, SunAmerica Retirement Markets.

The annuity presentation will offer strategies to help provide income for life and also help attendees determine retirement-income options they should explore. It will be held from 5:30 to 7 p.m. at the Ware Fire Department at 200 West St. in Ware. It is free and open to the public. Refreshments will be served.

“We are very pleased to be offering this free workshop,” said Steve Lowell, president of Monson Savings Bank. “Saving for retirement is hard enough, but then converting retirement savings into lifetime income can be very complex and confusing. That’s why we feel these complimentary workshops are so important.”

Mikaelian works with financial advisors throughout New England and Eastern New York. He has many years of experience in the financial-services industry and is very familiar with the topic of retirement-income planning. He is a graduate of UMass and Babson College’s MBA program.

Seating is limited, and reservations are required. To RSVP, call Anna Calvanese at (413) 267-1221 or e-mail [email protected].

Daily News

AMHERST — The Amherst Area Chamber of Commerce (AACC) board of directors announced the appointment of Timothy O’Brien as executive director, effective Aug. 1. He will assume responsibility for representing the chamber’s diverse business interests in the community, directing the organization’s growth, and maintaining the chamber’s financial stability and commitment to providing value to its members.

“Tim brings a wealth of experience and the needed energy and commitment to the Amherst area to serve all of our members,” said Julie Marcus, board president. The appointment had the unanimous support of the board’s executive committee.

“I am honored to help lead the Amherst Area Chamber team and excited to continue my career in destination marketing as part of this outstanding organization,” O’Brien said. “I look forward to working with the board, staff, and AACC members in writing the next chapter of the chamber’s influential history.”

O’Brien has been active in the Western Mass. destination-marketing industry since 1987. He has served as communications director with the Greater Springfield Convention and Visitors Bureau as well as serving on that agency’s board of directors. He held top marketing and communications positions with Yankee Candle and Kringle Candle, as well as providing marketing services to the Yankee Candle founder Michael Kittredge and his family, charity, and business interests. O’Brien holds bachelor’s degree in resource economics from UMass Amherst.

Daily News

SPRINGFIELD — The Gray House announced the appointment of Teresa Spaziani as the new executive director of the organization.

In 2009, while attending Western New England University, Spaziani began volunteering at Kids’ Club, an after-school program for children from low-income families run by the Gray House, and soon after became a staff counselor for the program. In January 2015, she joined the organization’s board of directors.

“After arriving in Springfield for college, I immediately immersed myself in the community through volunteer work and was so impressed by the people and services of the Gray House,” she said. “It is a true community program in every sense. I am proud to be a part of the organization and work alongside our dedicated staff and volunteers to further the mission of the Gray House.”

Spaziani’s brings experience in nonprofit fund-raising as former community relations and outreach manager at the Children’s Study Home in Springfield. There, she also gained experience in licensing and compliance as quality assurance manager. Her most recent role was in the field of marketing at Market Mentors in West Springfield. She holds a bachelor’s degree in business administration in marketing/communications and advertising from Western New England University as well as a certificate in professional fund-raising from Boston University. She graduated from Leadership Pioneer Valley with the class of 2015.

An open house will be held at the Gray House, 22 Sheldon St., Springfield on Wednesday, Aug. 24. Members of the community are invited to stop by from 8 to 9 a.m. and noon to 2 p.m. to meet the staff and learn more about the services offered, as well as volunteer opportunities.

For more information about the Gray House, visit www.grayhouse.org or contact Spaziani at (413) 734-6696 or [email protected].

Daily News

WESTFIELD — Tighe & Bond recently welcomed Director of Human Resources Margo Armstrong to lead its human-resources functions, as well as strengthen the firm’s staffing growth and employee programs. She brings with her more than 20 years of high-level leadership experience in HR consulting, performance management, succession planning, and employee programs. She will work primarily out of the firm’s Westfield office.

“We are delighted to welcome Margo to the Tighe & Bond team at this significant juncture of our accelerated growth. She is an accomplished HR leader who will strengthen employee-related programs across our organization,” said David Pinsky, Tighe & Bond CEO and president.

Armstrong has held a variety of senior human-resources and change-leadership roles in several prominent and high-performing businesses. This includes overseeing performance management, employee recognition, talent review, and succession planning; HR planning and analysis; and HR consulting. Known for possessing a strategic business focus and technical expertise, her knowledge base includes influencing and leading in complex and rapidly changing environments.

Armstrong holds a bachelor’s degree in business administration from Alfred University and a master’s degree in industrial/organizational psychology from the University of New Haven. She is a member of the Society for Human Resource Management.

Daily News

SPRINGFIELD — The Springfield Regional Chamber is seeking nominations for its annual Super 60 awards program.

Now in its 27th year, the awards program celebrates the success of the fastest-growing privately owned businesses in the region, which continue to make significant contributions to the strength of the regional economy. Each year, the program identifies the top-performing companies in revenue growth and total revenue. Last year, total-revenue winners combined for revenues of more than $1 billion, with only-third of winners exceeding revenues of $30 million. All winners in the revenue-growth category had growth in excess of 20% while one-third experienced growth in excess of 65%.

To be considered, companies must be based in Hampden or Hampshire county or be a member of the Springfield Regional Chamber, produce revenues of at least $1 million in the last fiscal year, be an independent and privately owned company, and have been in business for at least three full years. Companies are selected based on their percentage of revenue growth over a full three-year period or total revenues for the latest fiscal year.

Companies may be nominated by financial institutions, attorneys, or accountants, or be self-nominated. Companies must submit a nomination form and provide net operating revenue figures for the last three full fiscal years, signed and verified by an independent auditor. All financial information must be reported under generally accepted accounting principles and will be held and considered confidential and not released without prior approval.

Nomination forms are available here or by contacting Kara Cavanaugh at [email protected] or (413) 755-1310. Nominations must be submitted no later than Friday, Aug. 12.

The Super 60 awards will be presented in partnership with the East of the River Five Town Chamber of Commerce at the annual luncheon and recognition program on Friday, Oct. 28 from 11:30 a.m. to 1:30 p.m. at Chez Josef in Agawam.

Daily News

BOSTON — In the latest display of its R&D firepower, the University of Massachusetts vaulted to 30th globally in the Top 100 Worldwide Universities Granted U.S. Patents in 2015.

Winning a record 62 U.S. patents arising out of faculty inventions, UMass placed third in Massachusetts and New England and was tied for 24th place among American universities.

“Our faculty continues to shine with cutting-edge research and innovation that places us in the top tier of universities in the world. They lead us to new frontiers of human understanding, and their work opens the door to a more prosperous economic future,” President Marty Meehan said. “We’re proud of this accomplishment because today’s patent is tomorrow’s job-creating startup technology company.”

The patents awarded are based on UMass research in areas as diverse as gene silencing, high-technology textiles, polymers, and nanotechnology, according to Abigail Barrow, interim executive director of the university’s Office of Technology Commercialization and Ventures.

The 62 patents represent a 55% increase over the 40 awarded to UMass in the previous year and is the highest number issued in a single calendar year since UMass began its technology-transfer program in 1995, she added. UMass is also a national leader among universities in licensing income earned on its patented inventions.

“Congratulations to the University of Massachusetts for making the Top 100 again this year and for an impressive increase,” said Paul Sanberg, president of the National Academy of Inventors, which produces the rankings along with the Intellectual Property Owners Assoc.

One of the UMass patents relates to Geckskin, a super-strong adhesive discovered at UMass Amherst that can be used multiple times without losing effectiveness.

This year’s top 10 ranked universities worldwide were: the University of California system, Massachusetts Institute of Technology, Stanford University, the University of Texas, Tsinghua University (China), California Institute of Technology, Wisconsin Alumni Research Foundation, Johns Hopkins University, Columbia University, and University of Michigan. The rankings are calculated using data from the U.S. Patent and Trademark Office.

UMass is on pace to match or modestly exceed its record 62 patents in the next report, Barrow said. “Our impressive patent numbers reflect the rapid growth and influence of UMass’ research enterprise and the discovery going on at all of our campuses.”

UMass shares the number-30 spot with the University of Utah Research Foundation and the Research Foundation of the State University of New York.

The National Academy of Inventors is a nonprofit organization of U.S. and international universities and governmental and nonprofit research institutions with more than 3,000 members. The Intellectual Property Owners Assoc. is a trade association of owners of patents, trademarks, copyrights, and trade secrets. This is the fourth year they have collaborated to issue the rankings report.

Daily News

There are a number of intriguing economic-development projects underway across the Pioneer Valley, but perhaps none more compelling — and for a number of reasons — than the initiative taking shape in a building in downtown Holyoke known as the Cubit.

There, a public-private partnership on several levels has materialized, bringing to reality an endeavor that will create momentum in realms ranging from job creation to the revitalization of Holyoke’s central business district.

The facility being created on the structure’s first and second floors is called the MGM Resorts HCC Center for Hospitality and Culinary Arts at Holyoke. That’s a long name (hopefully a suitable acronym or nickname will emerge), but it is necessary, because it really tells the story — or most of it, anyway.

Indeed, this is a partnership between Holyoke Community College (and therefore the state), the city of Holyoke, MGM Resorts, which is building a $950 million casino in downtown Springfield, and the new owners of the Cubit building, who will create market-rate housing on the upper floors. And it takes a partnership to develop a property like this, which is one of the many former mill buildings in the Paper City now looking for new life.

The college needed a new home for its culinary arts program, the owners of the Cubit building were looking for a tenant that would anchor the property for years to come, the city of Holyoke was looking for individuals to invest in their community (and help them in their endeavors), and MGM was looking for help in training individuals for the many kinds of jobs at its casino.

To make a long story short, all the parties seem to have found what they were looking for. Holyoke is contributing $400,000 for this project from the funds it will receive from MGM through neighboring community-impact payments, MGM is donating an additional $100,000 toward the center, the state is contributing $1.75 million, the U.S. Department of Commerce Economic Development Administration is kicking in $1.55 million, and the HCC Foundation is contributing $500,000.

Together, that adds up to $4.25 million, but more importantly, it adds up to opportunity — for the college, for the city, for MGM, and for the thousands of people who will be trained at the facility over the years.

This is a true public-private partnership, the kind this region will need to revitalize its communities, train a workforce, and bring economic-development opportunities to the area. It should serve as a model of what can be done when diverse groups with different, but intertwined, goals come together for the common good.

Cover Story

Marking a Milestone

Eugene Cassidy, president and CEO of the Big E

Eugene Cassidy, president and CEO of the Big E, with one of the many pieces of memorabilia collected from patrons of the fair.

The Eastern States Exposition turns 100 this year. For organizers of the 17-day fair every fall and a host of other events during the year, planning such a celebration comes easily. But the centennial is in many ways more than a party — it’s an opportunity to reflect on the Big E’s history, its place in the region, and the many challenges that stand in the way of continuing this tradition for the generations to come.

The request went out on various forms of social media a few years ago.

The Eastern States Exposition, long on history but admittedly somewhat short on older archival material and memorabilia concerning its century-long existence, was looking for the public’s help in rectifying that problem — and in telling an important story.

“When we moved here [the Big E fairgrounds] from our offices at 31 Elm St. in Springfield in 1950, we jettisoned a lot of our archives; we have our business records and our meeting notes, but we don’t really have a good archive,” explained Eugene Cassidy, the institution’s president and CEO. “So we spent the past several years collecting Eastern States memorabilia, mostly from people who are fond patrons of the fairgrounds. And a lot of fascinating stuff poured in.”

The donations include dozens of photographs, some of them going as far back as the 1920s, and many chronicling the horrific floods of 1936 and 1955; promotional posters, including one from 1925 that was found behind a wall by two sisters from Ludlow as they were relocating to Alaska; a framed copy of some of the early attempts to answer a request from some journalists to shorten the exposition’s lengthy name (yes, this was the origin of the term ‘Big E’); and a metal sheet detailing the dates of the 1950 exposition that was designed to wrap neatly around street signs.

“People couldn’t tell what street they were on, but they knew the dates for the exposition,” said Cassidy as he held up the well-preserved artifact, marveling at its purpose.

Construction of the coliseum commences in 1916

Construction of the coliseum commences in 1916, just months before the National Dairy Show was to come to West Springfield.

These items and countless others will be put on display during this year’s Big E, the 100th birthday celebration, which will commence Sept. 16. Collectively, they speak to the institution’s place — not only in the region, but in the hearts, and memory banks, of the millions who have visited the fairgrounds over the years.

In many ways, this is what will be celebrated during this milestone year, said Cassidy, adding that Big E administrators want to use the occasion to bring awareness to the institution’s long history, the manner in which it has become part of the social fabric of the region (in a figurative, but also quite literal, sense, as we’ll see) — and the fact that help, in many forms, will certainly be needed to preserve this tradition for future generations.

Indeed, the Big E is facing a number of formidable challenges as it stares down its second century, said Cassidy, now in his fifth year at the helm, listing everything from an ever-growing number of forces competing for the time and energy of families to the inexorable decline of agriculture in Massachusetts and the Northeast (the bedrock on which the exposition was built), and an aging exposition infrastructure that includes several buildings that date to the beginning in 1916, including the venerable coliseum.

“My goal is to raise awareness so that people in the greater community might take a step back and think about what Eastern States means to the region,” he explained. “This is an opportunity for people to refamiliarize themselves with Eastern States at hopefully a different level, and to take note of our resilient ability to remain successful in an environment that becomes increasingly more difficult to survive in.”

Elaborating, he said fairs of this type across the country are struggling mightily, but many have the support of their various states to fall back on.

“Gov. [Andrew] Cuomo recently gave the New York State Fair $55 million to rehabilitate a few buildings on their fairgrounds, and the Indiana State Fair gets 6% of the revenues from gaming in that state,” said Cassidy, adding that the Big E is certainly not likely to receive similar forms of support.

To fund needed capital projects and relieve the exposition of growing amounts of debt, other measures will be required, said Cassidy, noting that a capital campaign for the nonprofit organization is a distinct possibility.

For now, he wants to grow awareness and gain a full appreciation for the institution.

“My personal goal is for as many as possible in our Greater New England region to have a connection to, and a fondness for, the future of this organization, some respect for its history, and a desire to be a part of it moving forward,” he explained. “It’s going to take all of that in order to assure that this organization continues to have its incredible importance on the stage of national agriculture and food production, and to continue to have the economic impact it has.”

For this issue, BusinessWest takes a look at the Big E’s centennial, what is planned from a celebratory standpoint, and especially at what this institution must do after it blows out the candles for its 100th birthday.

Party Animals

Cassidy told BusinessWest that the Big E is used to throwing big parties — in most respects, that’s what it does for 17 days each fall — so a 100th-birthday celebration is, in many respects, no big deal.

Well, at least from a planning and execution perspective; again, this is what they do. From a historical and, yes, public-relations perspective, though, this is a very big deal, an opportunity that exposition officials intend to fully maximize.

the Big E in the 1920s

This panoramic photo shows the Big E in the 1920s, when it was fast becoming a tradition in the region.

There will be a number of special touches, he went on, pointing to everything from the birthday-cake-like signage now adorning the administration building to the flagpoles now affixed to the coliseum (an attempt to recapture the look from 1916 and the ensuing decades); from the display of artifacts collected from the public to a spirited effort to bring back performers from the exposition’s heyday in the ’50s, ’60s, and early ’70s (the return of the Cowsills falls into that category); from a new/old logo, as well as coasters, buttons, and magnets with the number ‘100’ on them, to a special Big E tartan, a pattern bearing a mix of the primary colors of the Big E, the town of West Springfield, and the six New England states already woven into ties and scarves — the fabric of the community in a literal sense.

There will also be a commemorative book on the centennial, due to be released just before this year’s fair begins (one can already be ordered online).

Wayne Phaneuf, executive editor of the Republican, was the main editor for the book and one of those contributing content and selecting photos, the latter of which essentially tell the story of the past half-century.

Phaneuf told BusinessWest that he did some extensive research for the project and learned a number of things while doing so.

That list includes everything from the full roster of entertainers who appeared over the years — “I never knew Bob Hope came here,” he said — to insight into how the federal government essentially commandeered the fairgrounds during both World War I and World War II for use as a staging area and supply depot.

But mostly, that research merely reinforced what he already knew.

“As a kid growing up in this area, there were only two things kids really looked forward to,” he said while summing things up — “Christmas and the Big E.”

And that sentiment basically applies to people of all ages, he went on, adding that the book — and the 100th anniversary, really — is all about memories.

People from across this area and soon well beyond started collecting them in 1916, when Joshua Brooks, a prominent area businessman and lithographer by trade (his company printed bank notes, among other things), pulled off an unlikely coup and brought the prominent National Dairy Show to a once-muddy flood plain beside the Westfield River.

Actually, when he sold this region to the highly skeptical fair organizers during intense meetings in Chicago, that area was still mostly a swamp — but one for which Brooks had big plans.

Growing Concern

Two years earlier, he and 62 others listed as original incorporators launched the Eastern States Agricultural and Industrial Exposition. Its lengthy purpose was to “to hold agricultural and industrial expositions, and fairs within the county of Hampden, to engage in agricultural and industrial products and in livestock, to conduct races, sports, and general amusements, and to promote the agricultural and industrial development of the eastern states.” (No, there’s nothing in there about cream puffs or deep-fried … anything.)

Brooks’ ambitious plan was to launch the first exposition by bringing the National Dairy Show to the site. And to do that — again, against seemingly all odds — he essentially sold a promise: to build the roads, buildings, facilities, and amenities needed to stage that event, because none existed at the time.

To make a rather long story short, he delivered on that promise, raising more than $500,000 to get it all done.

A year after the successful staging of that event, the Eastern States Exposition and Dairy Show began, only a few months before the U.S. officially entered World War I. The first fair drew 138,000 people, roughly one-tenth what it does today.

BigE-BobHope

the Big E was the undisputed entertainment hub

Until the mid-’70s, the Big E was the undisputed entertainment hub in the region, hosting entertainers such as Bob Hope (top) and sporting events like auto racing.

After the war, the Big E initiated a pattern of continued growth and expansion that would continue for decades — not simply in terms of infrastructure, but also in prestige, attendance, and prominence within the region and also well beyond it.

The Big E, and especially the fair each fall, would find a unique place in the region’s consciousness, while drawing celebrities and politicians, including a sitting president, Dwight Eisenhower, and his sitting vice president, Richard Nixon.

By the middle of the 20th century, the Big E — as it came to be known in 1967 amid complaints from the press that there were just too many syllables in Eastern States Exposition — became the undisputed center of entertainment in Western Mass. and Northern Conn., as well as a place for events of all types, because the coliseum was the largest venue of its kind in the region.

Indeed, the exposition was, for many years, home to professional hockey (the American Hockey League in the form of Springfield’s franchise, but also the parent National Hockey League when the Hartford Civic Center’s roof collapsed in January 1978, leaving the Whalers temporarily homeless). But it was also home to what is now CityStage (then StageWest) starting in 1967, as well as other entertainment facilities, including the Storrowton Dinner Theatre.

The list of those who have appeared in West Springfield is long and prestigious, and includes the likes of Fred Astaire and Ginger Rogers, Lionel Barrymore, Jackie Gleason, Bob Hope, Liberace, Arthur Godfrey, and countless others.

“We have a great, storied history for entertainment — we had the biggest names going back to the 1920s,” Cassidy said. “Anybody who was anybody played at the Eastern States. Buddy Hackett played here so many times that, in the late ’60s, the police chief gave him a key to the town of West Springfield. He loved the fair, and he loved his connection to us.”

The exposition also hosted all manner of events, including college and high-school graduations, a wide array of sporting events, and many political gatherings, including the 1964 state Democratic convention. (The state’s junior senator, Edward Kennedy, then campaigning for re-election, was injured and nearly killed as the plane taking him to that convention crashed in Southampton).

Survivor’s Story

But while the exposition’s history is replete with big names, big events, and big crowds, it is, in many respects, a story of survival, of overcoming challenge.

Those challenges have come in a number of forms — from two world wars to the Great Depression, which took a heavy toll in a number of ways, to the building in the early ’70s of the Springfield Civic Center, which took hockey, many school graduations, and scores of other events across the Connecticut River and actually prompted Big E officials to briefly consider a move to the Nutmeg State as a way to counter that threat.

Then there were the natural disasters, the floods, and especially the hurricane that visited Western Mass. in September 1938, just a few days after that year’s fair had begun.

Photos taken in the aftermath of the disaster told a story of complete devastation, with rides, tents, and structures crumpled, a situation compounded by a forced early closing and resulting loss of revenue as well as the lingering effects of the depression, which cast a large shadow over the prospects for recovery.

The situation was summed up poignantly in remarks, included in the centennial book, from Republican reporter Frank Bauer, who attended a meeting convened by Brooks that featured a host of area business leaders curious about what could, and would, happen next for the fair.

“The Eastern States Exposition, even then a venerable 22-year-old institution, was in danger of extinction, down and out from the big blow,” he wrote. “There was no treasury, no funds, and no insurance to begin to cover the damage and loss of revenue.”

Before that meeting ended, Bauer went on, Brooks and ally Harry Fisk asked for and received commitments from those in the room for funds to restore the fair.

While the situation nearly eight decades later is not as dire in most respects, there are some similarities, said Cassidy, noting that the Big E is facing a host of challenges — if it not to its survival, then certainly to its bottom line and many of its traditions, especially its agricultural roots.

Chief among them, perhaps, is the aging infrastructure at the fairgrounds and the ever-rising cost of restoring and modernizing buildings built decades ago.

President Dwight Eisenhower

President Dwight Eisenhower, left, visits the Big E in 1953.

Fair officials have received some estimates, for example, that it would cost at least $40 million, and probably more, to completely restore the coliseum to its former glory and original look and make it suitable for many of the events it can no longer stage, said Cassidy.

“The coliseum is obsolete today — professional hockey moved out in the ’70s, and they stopped playing high-school hockey there in 1991,” he explained, adding that the facility is now used mostly for horse shows and the Shrine Circus. “The building is in need of a $50 million to $60 million investment to make it contemporary in this day and age.”

There are other facilities that need work as well, he said, pegging the total amount of deferred maintenance at more than $140 million.

To capitalize the needed work, the Big E, despite several very successful years recently, would have to revert to its old methods for raising money, he explained. Well, sort of.

“In the old days, when we had a rainy fair and lost money, Mr. Brooks would get on the phone and call everybody up and say, ‘I need you to write me a check for $16,000,’” Cassidy said, adding that those calls went to corporators, board members, and other prominent supporters of the exposition.  “And the money came in; it paid the bills, and it got us through difficult times.”

That model was actually still in place in 1978, when the Big E used it to finance the Young Building, Cassidy said, adding that, when Brooks’ son, J. Loring Brooks, died in 1980, that development strategy was essentially retired.

As a result, to fund its operation, the Big E has taken on increasingly larger amounts of debt, he explained, noting that the number has risen exponentially over the past few decades.

Thus, when the centennial celebration is over, the focus will shift entirely to the next 100 years, said Cassidy, adding that this includes development of a new strategic plan that will specifically address challenges and how to fund them.

“It will have a meaningful and robust development and fund-raising piece to it,” he said, adding that a likely step is a capital campaign, something the fair hasn’t done — at least in the modern sense of that term.

With those thoughts as a backdrop, Cassidy noted, again, that this Big E will, from a production standpoint, be business as usual, but it will also comprise a sincere effort to show just how important that business is for the region, and how challenging it will be to continue it into the future.

Fair Game

As he posed for a few photos with some of the memorabilia collected from area residents, Cassidy stopped at the large conference room in the administration building.

He wanted to show off the renovations to that facility, but also, and more importantly, make a point.

To do so, he started by gesturing to the photos of Joshua and J. Loring Brooks (they were both known as J.L.) at the far end of the room.

“Those used to be out in the hallway, where no one really saw them,” he explained, adding that, now, they’re almost impossible to miss.

In fact, the horseshoe-shaped conference table is set up so that each member of the board of directors will face those pictures, of the founder and the man who continued his work for several decades.

“So, in a way, while addressing the present and the future, we’re always reminded of the past and the need to preserve that history and those traditions,” Cassidy explained.

In many respects, that’s exactly what the 100th-birthday celebration is all about.

George O’Brien can be reached at [email protected]

Community Spotlight Features

Community Spotlight

Brian Mannix

Brian Mannix says plans to transform the clock tower building into market-rate apartments, with retail and office space, could bring young professionals to the community.

Brian Mannix stood at the foot of Ludlow’s new riverwalk behind Ludlow Mills and talked about a future he could clearly picture.

“Think of what it would be like to clear away some of this greenery and have a restaurant with seats facing the river and boutique shops with benches outside,” said Mannix, chair of the town’s Board of Selectmen, as he spoke about Ludlow Mills, the projects underway on its campus, and the unlimited potential the property will hold for years to come.

Eric Nelson says Mannix’s vision may become reality. “We have one building now with the potential for a view of the river, and when we create Riverside Drive, which is on the comprehensive plan for the site, it will open up new vistas,” said the recently named president and CEO of Westmass Area Development Corp., which owns the site and is working to revitalize it. “Plus, we just knocked down two large structures with asbestos between the large mill buildings and the river, and the vistas from them are tremendous.”

The mills encompass a sprawling complex of more than 60 buildings set on 170 acres, and Westmass predicts that, over the next 15 years, more than 2,000 new jobs will be created and retained there, and more than $300 million will be spent in private investments.

Two years ago, HealthSouth Rehabilitation Hospital of Western Massachusetts opened a new, $28 million acute-care facility on the grounds, which marked the beginning of the revitalization of the largest brownfield mill-redevelopment project in New England and kept 75 to 100 jobs in Ludlow.

“HealthSouth was a big jump start,” said Lawrence Curtis, president and managing partner of WinnDevelopment, which specializes in housing and mill redevelopment and has two projects planned at the Ludlow Mills. One is a $24.5 million adaptive reuse of Mill 10 that will result in 63 one-bedroom units and 12 two-bedroom apartments for seniors.

Curtis said that project is fully funded and expected to be complete in the fall. “We’re transforming a vacant building with broken windows into a vibrant space that will contain subsidized and market-rate apartments with beautiful architectural features, including exposed beams and brick and large windows,” he said.

The ambitious second phase of the company’s work was announced at the recent Developers Conference in downtown Springfield, and involves the conversion and reuse of Mill 8, which features the town’s iconic clock tower. The plan is to turn the building’s 231,000 square feet across several floors into 100 to 136 market-rate apartments with commercial, retail, and office space on the first floor. The estimated cost is $60 million, and Curtis said significant funding needs to be secured before work can get underway.

But he considers it an ideal site.

“Ludlow Mills is a beautiful, intact complex situated in the center of town; it’s a great location, and Winn Development and the town of Ludlow are fortunate to have married to take advantage of the space there,” he said, adding that, in the past, many people wondered what would become of the property.

And indeed, the revitalization of the complex and the new projects will make a decided difference.

“The potential of what this will bring to the town is overwhelming,” Mannix said, noting that many fund-raisers have been held over the years to repair the clock tower, and the news that the building will remain and be put to new use makes many residents happy.

“The clock tower is a signature piece that people see when they drive into town, and we hope it will become the icon of the new project,” he continued, as he lauded Westmass and Winn Development for their efforts.

Westmass purchased the site five years ago, and since that time, it has attracted $75 million in public and private investment, outside the newly announced $60 million clock-tower building renovation.

“WestMass has a real desire and determination to use the mill property to put Ludlow on the map, and the redevelopment is a step forward in Ludlow’s future,” Mannix told BusinessWest, noting that the loft-style apartments planned for the clock tower could bring new, young professionals to town, hopefully followed by small boutiques and restaurants to enhance the site.

Nelson said the work that is complete, in progress, and in the planning stages speaks to the partnership that the town formed with Westmass.

“This is the fruit of all that has been done. When the comprehensive zoning and master plan were created, we envisioned these types of projects,” he said, explaining early public meetings with residents to determine what they wanted in terms of preservation and development, which included senior housing.

Progress Report

The majority of buildings that make up the heart of Ludlow Mills on State Street were built between the 1870s and 1920s by Ludlow Manufacturing and Sales Co. From the 1860s through the 1970s, it made cloth, rope, and twine out of Indian-grown jute, flax, and hemp, employing about 4,000 people in its heyday.

the historic clock tower building

Plans are on the table to convert the historic clock tower building into market-rate housing.

Although the property fell into a state of decline after the operation shut down, great strides have been made toward revitalization, thanks to public and private investments, including the one by HealthSouth, which paid tribute to the town’s history by using 100,000 salvaged bricks and planed wooden beams from old mill buildings in its new hospital. Today, the complex is a mixed-use district and home to many small manufacturing and design businesses that include Iron Duke Brewery, which opened in a 3,000-square-foot space in December 2014.

Mannix said the microbrewery has done so well, it plans to add an outside patio with entertainment in the near future.

Potential to build a new senior center also exists at the mill site, and the selectmen recently listened to a proposal presented by Council on Aging officials and Friends of the Senior Center who want the town to build a $10 million, 23,000-square-foot facility on a 4.4-acre parcel of land next to HealthSouth. “They did a lot of groundwork and had a great presentation,” Mannix said.

The mill property has also been enhanced by a riverwalk that officially opened several months ago. It starts behind the clock tower and ends at HealthSouth.

Mannix said the town just received a $429,500 MassWorks grant for the riverwalk that will be used to install new signage to educate people about the history of Ludlow and Ludlow Mills, as well as new lighting and markings that will help make it more accessible.

A great deal of needed infrastructure work has also been completed in the area.

“The water and sewer lines downtown were installed when Ludlow Mills was in its heyday, but were never mapped out. We needed to bring them up to code to have the ability to attract developers and all types of businesses,” Mannix said, noting that a $5 million sewer-separation project was just finished, and close to $4 million has been spent to upgrade the utilities on State Street.

In addition, new curbing, sidewalks, and lighting have been installed along a 1.5-mile stretch on East Street that runs from the bridge to Williams Street.

Although downtown vacancies were on the rise a decade ago, over the past few years new restaurants and beauty salons have been filling empty storefronts.

“We’re finally moving forward in the right direction. We’re looking to improve our downtown district and constantly looking for businesses that want to locate there,” Mannix said.

He noted that Cumberland Farms on West Street just expanded, and the one on East Street recently purchased a former restaurant next door, razed the building, and is building a new, expanded storefront.

A new solar farm is also in the planning stages. Mannix told BusinessWest that Ed Godin, who owns Ludlow Auto Salvage, has closed his decades-old family business and is turning it into a solar facility. It will be the second solar farm in town; several years ago, the Ludlow landfill was converted into a 2.7-megawatt facility by California developer Borrego Solar Systems Inc.

“All of the electricity generated at the landfill is sold to the town at a substantially reduced rate; it saves us $120,000 each year,” Mannix said, adding that he is happy the land owned by Ludlow Auto Salvage will be used to generate green energy.

A new public cemetery may also become part of the landscape; the town is in the process of purchasing 40 acres next to Ludlow Auto Salvage for that purpose. The site was once home to a driving range and has been unused for about a decade.

Mannix said the purchase is important because the town’s current public cemetery will be filled in two or three years, and the new cemetery, located off Center Street or Route 20, will be large enough to last for decades.

View to the Future

Nelson said the town vigorously supported Westmass after it purchased the property, and partnered with the state to secure enough state and federal funding to complete the cleanup of the brownfield site and get the needed infrastructure work done.

“Having these things complete makes it attractive to developers like Winn. Their projects are challenging enough, and having the infrastructure and cleanup completed allows them to do what they do best,” he said. “We’re starting to see people focusing not only on the mills, but on Ludlow itself.”

Indeed, the new HealthSouth Rehabilitation Hospital and work being done by WinnDevelopment are already bringing new life to the area.

“The community has been very receptive to what we are doing, and thanks to our track record, skill set, and interest from the town, a real transformation is happening at the Ludlow Mills,” Curtis said.

Mannix agreed. “The clock-tower project and the transformation of Building 10 will be a giant step forward for the future of the town,” he said, adding that Ludlow already has a lot to offer. “We have top-of-the-line schools and a sports complex behind the high school, our own golf course, a beach at Haviland Pond and a town pool on Whitney Street which both offer extensive youth programs during the summer, a community center, great services which include free trash pickup, a reasonable tax rate, and Lupa Zoo, which is a real asset as it constantly brings new people into town.

“Things are very positive, and a lot of it has to do with the Ludlow Mills and people like Ed Godin,” Mannix went on. “We are very pleased with the growth that is taking place.”

Nelson said every dollar invested in revitalizing a mill property multiplies and has a ripple affect in the community and region in general: contractors get work, there is a need for building supplies, and new jobs are created once projects are complete.

“If you throw a rock in a pond, it makes waves, and the largest waves are right where it lands,” he said.

With a view of the river that will be seen not only from the new apartments facing it, but from many businesses that occupy the property in the future, it’s not hard to see why officials can easily imagine a bright future for Ludlow.

 

Ludlow at a glance

Year Incorporated: 1774
Population: 9,872 (2010)
Area: 28.2 square miles
County: Hampden
Residential Tax Rate: $18.13
Commercial Tax Rate: $18.13
Median Household Income: $53,244
Family Household Income: $67,797
Type of Government: Town Council; Representative Town Meeting
Largest Employers: Hampden County House of Correction; Massachusetts Air National Guard; Kleeberg Sheet Metal Inc.; R&C Floral Inc.
* Latest information available

Opinion

Editorial

It’s one of those headlines that would probably get lost amid others on the business pages of the newspaper, or even this publication — about mergers, acquisitions, new CEOs, the market’s seemingly endless ups and downs, and even the price of gasoline.

But it shouldn’t.

‘Baker-Polito Administration Awards $8.5 Million in Workforce Training Grants’ doesn’t seem like big news, and to most, it probably isn’t. But in many ways, it’s huge news for this state and the individual companies that make up its diverse, technology-driven, and talent-dependent economy.

In other words, this is money well-spent. Make that very well-spent.

To explain, let’s look beyond the headline.

That $8.5 million, awarded a few weeks ago, will go to dozens of companies of all sizes. Locally, the list includes everything from small technology companies, like Westfield-based EpiCenter, to giant retailers, like Big Y Foods, to mid-sized service providers, like East Longmeadow-based Tiger Press.

These companies may be different in many respects, but they share a few distinct qualities: they’re smart, because they realize the inherent value of training employees in an age when technology continues to advance and new and better methods for doing business emerge, and they look upon training as an investment, not an expense item to be avoided or put off until when the skies are bluer. And they’re resourceful, because they applied for grants made available through the state’s Workforce Training Fund to help make that wise and usually sizable investment in training more palatable and stretch further.

A program of the Executive Office of Labor and Workforce Development, the training program provides grants up to $250,000 to companies of any size to pay for workforce training over a two-year period. Grants are awarded to projects that will upgrade workers’ skills, increase productivity, and enhance the competitiveness of Bay State businesses. Grants are matched dollar for dollar by the award recipients.

The grants are used to not only train existing employees, but bring on additional workers and thus fuel additional growth for the participating companies.

At Sound Seal Inc. in Agawam, for example, $168,000 will be awarded to train 59 workers, with an expectation that six jobs will be added by 2018. At Valley Steel Stamp in Greenfield, $123,120 was awarded to train 27 workers, with that same number expected to be added by 2018. At Tapestry Health in Florence, $58,585 was awarded to train 90 workers. Monson Savings Bank was awarded $58,675 to train 167 workers, with two additional jobs expected by 2018. The list goes on.

Beyond the numbers, what’s important to note is what they mean — that hundreds of additional workers will be better-equipped to handle the increasingly challenging jobs of today’s technology-fueled economy, and more businesses, including manufacturers, will be better able to compete with companies around the globe.

As we’ve said on many occasions, the biggest challenge facing area businesses isn’t interest rates or consumer confidence or the price of oil — it’s the skills gap that is pervading each and every sector of the economy, and the ensuing, and ongoing, need for talented workers.

As mentioned at the top, ‘Baker-Polito Administration Awards $8.5 Million in Workforce Training Grants’ is not a grabber when it comes to business-story headlines. But it should be.

It should grab the attention of everyone who does business in the Commonwealth — and wants to do it better.

This is truly money well-spent.

Opinion

Editorial

You won’t find it at or anywhere near the top of those oft-cited lists of all the economic-development activity happening in Springfield, a compilation dominated by MGM’s casino, CRRC MA’s subway-car-manufacturing facility, the I-91 reconstruction project, Union Station, and Silverbrook Lofts.

But the recently unveiled $1.8 million purchase and renovation of the historic Merrick Phelps House on Maple Street is significant in its own way — many ways, actually.

The property, once the home to Solymon Merrick, inventor of the monkey wrench, was an eyesore, a blight on the once-proud Maple Street-area neighborhood. No one wanted anything to do with it, and for years it sat there deteriorating, a highly visible symbol of all of the many things wrong with Springfield.

Enter DevelopSpringfield, the nonprofit, 501(c)(3) corporation created in 2008 to advance development and redevelopment projects, and its energetic president and CEO, Jay Minkarah. Unofficially, the agency’s mission is to generate momentum and progress in the City of Homes through a number of initiatives, one of them being the acquisition and repurposing of properties like the Merrick Phelps House.

And this project has created both.

Beyond restoring one of the proud properties that gives the city its nickname and converting it into business space, this effort is now a highly visible symbol of the many things going right in Springfield — specifically a strong blend of public and private investments that can only succeed in generating more of the same.

Indeed, when residents, business owners, developers, and even state officials see a project like this, they become far more likely to look upon Springfield as a place they want to invest in. They look upon an initiative like this and say, ‘well, if someone can do that, then we can…’

Anyone with an imagination can fill in the blank. And as DevelopSpringfield, other agencies, and private developers undertake more projects like the Merrick Phelps House, more groups and individuals will be inspired to try and do so.

This is the basic formula for redeveloping properties, blocks, streets, neighborhoods, and communities. Progress begets more progress. It’s a simple theory, but it works, as we’ve seen in cities across the country, and locally, in Lowell and even Holyoke.

It is through projects like this that progress spreads beyond the central business district and into surrounding neighborhoods, where people live — and more would choose to live if it were a place they could take pride in.

Springfield, as we all know, is all about neighborhoods, and many of them — in fact, most of them — need to turn to the past tense when putting that word ‘pride’ to use.

When officials and organizations like DevelopSpringfield talk about progress coming one building at a time, it sounds cliché. But it’s not. This is how cities rebuild themselves and restore lost pride — one property, one important project at a time.

Banking and Financial Services Sections

The Feeling’s Mutual

Tom Senecal

Tom Senecal

Tom Senecal takes the helm at PeoplesBank at an intriguing time for the institution — and the industry. Competition is keen, and efforts to achieve growth are challenged by thin margins and stagnant, historically low interest rates. The bank has made a commitment to continue this fight as a mutual institution, a strategy Senecal believes will continue to bring a host of inherent advantages.

Tom Senecal called it “going from the back room to the front lines.”

That’s how he chose to describe his decision in 2001 to leave his position as controller at Holyoke-based PeoplesBank and join the commercial-lending team led at that time by future President and CEO Doug Bowen.

Looking back on that not-so-subtle and fairly unusual career move, Senecal said that, at that juncture, he understood it was a necessary move if he was to achieve what was an already-emerging goal — to move higher up the ladder in banking administration, and perhaps to the top rung.

“I knew, career-wise, that if I wanted to be … well, where I am today, I needed more exposure and experience than just an accounting background,” he explained, noting that Bowen’s career trajectory has become common in the industry today. “So I made a conscious decision to change careers and move to the front line of servicing customers.

“This was outside my comfort zone — I was 41 years old, moving from an accounting environment to a sales environment,” he went on. “But I knew I needed that experience.”

What Senecal — who was named president last August after prevailing in a search for Bowen’s successor a few months after he made his retirement plans known — didn’t know in 2001 but does know now, is that, while leaving the back room improved his chances to advance in this industry, working in both settings will better enable him to handle that position’s varied job description.

“My experiences, both on the financial side and in lending, brought something different to the table, and that’s important given the current banking environment,” he explained. “Both jobs enabled me to see how the bank operates, but from different perspectives.”

Senecal takes the helm at PeoplesBank at an intriguing time for both that institution and the banking industry as a whole. Indeed, he officially takes both the president and CEO titles (Bowen maintained the latter until late June) just as the bank, probably not coincidentally, announced it was taking its commitment to being a mutual bank to a higher level.

Specifically, the institution changed its bylaws in a way that will make any future conversion to a stockholder-owned company exceedingly more difficult. Before, a vote to take such a step would require a simple majority of votes among corporators to move in that direction; now, it will take a super-majority, or 75% (much more on all this later).

As for the industry in general, a trend toward consolidation and gaining all-important size and economies of scale continues unabated, with the recently announced merger of Westfield Bank and Chicopee Savings Bank being the latest in a lengthy string of such moves.

Senecal acknowledged the benefits of size in this era of rising regulatory costs and razor-thin margins, but said PeoplesBank will continue to address those challenges as a mutual institution, and with an operating strategy forged by his immediate predecessors and honed by Bowen during his 10-year tenure.

Tenets include everything from calculated territorial expansion, including a strong push into Springfield, to permanent residency on the cutting edge of new banking technology and an emerging niche in lending to ‘green’ business ventures.

Describing what might come next, Senecal started by implying strongly that there won’t be any attempts to fix anything that isn’t broken (and that’s most things). Getting slightly more specific, he said the bank will continue its efforts to grow the only way a bank can grow in this region and this banking environment — by gaining additional market share.

And this brings him back to mutuality and a commitment to retain that operating structure. As a mutual institution, the bank is not beholden to stockholders, he explained, and in this case, the word ‘local’ doesn’t refer to where commercial lenders live and play golf, but rather to where decisions are made.

“We believe that local decisions really do mean something,” he noted. “There aren’t many mutuals left, and that means people don’t feel comfortable that the decisions are being made in Western Massachusetts. I think that’s a big advantage for us.”

For this issue and its focus on banking and financial services, BusinessWest talked at length with Senecal about his career in banking, his attainment of that goal he set long ago, and what to expect — or not expect, as the case may be — from PeoplesBank moving forward.

Matters of Note

Summing up the progressive Doug Bowen administration at the 131-year-old institution, Senecal said his predecessor “set the bar very high.”

As he spoke those words, he was referring to awards and honors, specifically to the bank’s regular appearance on a host of regional and statewide ‘best-of’ lists. They include everything from the Boston Globe’s compilation of the best places to work in the Bay State to Boston Business Journal’s list of the top corporate charitable contributors, to MassLive’s Readers Raves.

Meanwhile, Bowen himself was honored in 2009 as one of BusinessWest’s first Difference Makers, and in 2011 as a Globe 100 Innovator for, essentially, creating an environment that fostered and facilitated all of the above.

But that reference to setting the bar high actually referred to much more than placement on lists and plaques for the front lobby. It was also a reference to overall growth (the bank crashed through the $2 billion barrier in total assets during Bowen’s tenure), territorial expansion in the form of six new branches, a ‘green’ philosophy (three of those branches are LEED-certified), innovation (the institution has created a Customer Innovation Lab and hired a so-called ‘data scientist’), and the bank’s strong commitment to mutuality and the many competitive advantages it brings.

Senecal will work to keep the bar where it is and hopefully raise it even higher, and he’ll bring to this task that aforementioned blend of experience in the back room and on the front lines.

A Coast Guard veteran, Senecal eventually decided the military would not become a career, and went back to school, earning a degree in business at the Isenberg School of Management at UMass Amherst.

Tom Senecal, seen with other members of the PeoplesBank

Tom Senecal, seen with other members of the PeoplesBank team, says the bank’s commitment to remain a mutual institution makes a strong statement.

He started his career in the financial-services sector with the Big 4 firm KPMG, as a senior manager and CPA. In that capacity, he provided organizational leadership and technical consulting expertise in the areas of auditing, accounting, tax compliance, and financial reporting for small to mid-sized banks in Massachusetts and Connecticut. One of the clients in his portfolio was PeoplesBank, which eventually recruited him to the role of controller.

As mentioned earlier, he drifted far out of his comfort zone a few years later and joined the commercial-lending team, where he remained until 2004, when he accepted an offer to join Florence Savings Bank as CFO and treasurer.

He returned to Holyoke in 2008 when Bowen, who took the helm at PeoplesBank a year earlier, encouraged him to take that same role with his bank.

“I looked upon coming back here as an opportunity,” he explained. “PeoplesBank is a larger, broader-reaching bank geographically that had a lot of opportunities for growth because of its name recognition and the marketability of PeoplesBank. Having had some conversations about the future with people here, I decided to come back.”

The search for Bowen’s successor, which began in the summer of 2015, eventually focused on two internal candidates, and Senecal prevailed.

Making a Statement

Since taking over as president of the bank, Senecal has put himself even closer to the front line — actually, right on it.

Indeed, he’s spent some time behind teller windows at several of the branches, getting an up-close look at what happens there, while also taking the opportunity to speak with some customers directly.

“I don’t think one of those branches is going to invite me back to scan checks, because I wasn’t very good at it — I think I kept the staff an extra hour,” he joked, adding quickly that those experiences were nonetheless fruitful and somewhat eye-opening. “As much as I can laugh about it now, that’s an example of understanding what the front line is really like.”

Beyond this time in the field, Senecal said he’s spent his first several months as president working toward that vote on mutuality and also developing a new four-year strategic plan. Dubbed Vision 2020, it will be presented to the board of directors in September.

When asked what’s in it, Senecal offered only generalities, and said it focuses on every aspect of the banking operation, including retail and commercial products and services, cash management, retail delivery channels, digital delivery channels, and more.

“We’re strategizing and looking at best-in-class products and services to compete with the larger institutions,” he explained. “Remaining as a mutual enables us to do that; we don’t have to worry about the next quarter’s earnings — we can make investments in these technologies and people and not worry about it. We’re in it for the long term.”

Elaborating, he said the bank changed two bylaws that will make converting to a public company far less likely. The first is the new requirement of a super-majority. The second is a so-called ‘protective self-enrichment clause,’ which prevents any director or senior manager from financially benefiting if that 75% vote from the corporators is actually obtained.

“Management and directors cannot participate in any initial public offering,” he explained. “This takes away all the financial incentive to convert; it requires senior management to focus on the long term and growing responsibly.”

Commenting on the decision to change the bylaws regarding mutuality, Senecal said he’s not sure such a step was necessary given that the bank hasn’t shown any interest in moving toward converting to stock ownership. But the vote does make a statement, and an important one, he went on, in terms of its commitment to the community.

“It was an opportunity to commit the institution and send a message to the community about who we are,” he explained. “I think it’s hard to deliver that message because most people don’t understand what mutuality is and how it affects them.

“Having been the CFO of two banks and having talked to other banks, I’ve gotten a real sense for what community banks do for our communities,” he explained. “You can talk to the big banks and the public banks, and they’ll tell you they’re committed and they’re creating foundations, but take a look at what they contribute to the community compared to what the mutual banks contribute, and you’ll see a huge difference.

“The public doesn’t see that,” he went on. “But on the inside, we see that.”

On-the-money Analysis

Still, despite the apparent advantages of mutuality, it does bring some competitive challenges, especially when it comes to size and its benefits, and capital (which ultimately determines how much a bank can lend) and how to attain it.

“Size is not overrated,” Senecal said, adding that it is the best method for coping with costs that continue to rise (compliance costs have nearly tripled for PeoplesBank over the past three years, from $1 million to $2.5 million, for example), while banks cannot recover them by adjusting rates for loans and deposits.

As for raising capital, public banks do so through stock offerings, he noted, while for mutual banks, the only source of capital is earnings, which are elusive in this era of those rising operating costs and in a region generally defined by the compound modifier ‘no-growth.’

But Senecal said there is room for growth in market share, and, as an example, he pointed to the residential mortgage market.

“We were a top-four mortgage lender in Hampden and Hampshire counties last year,” he explained. “There were probably 190 originators in our market, and we had 4% of that market. To me, there’s a lot of market share that can be acquired — and in many ways beyond bricks and mortar.”

This was a reference to emerging technology in the financial world and digital ways of doing business, a realm the bank has been on the leading edge of for years, Senecal noted — a trend he expects to continue.

Meanwhile, there is also room for growth in commercial lending, he said, adding quickly that the market remains highly competitive, despite the fact that the spate of mergers and acquisitions has actually created fewer players.

“There may be fewer banks, but there aren’t fewer lenders — this remains a very competitive environment fueled by historically low rates,” he explained, adding that area institutions are raising the already-high stakes by recruiting not simply individual lenders, but entire teams of lenders.

“I think the public institutions are feeling that they can steal market share by acquiring a group of commercial lenders,” he explained, adding that PeoplesBank has a different strategy, one focused on creating and maintaining relationships through stability.

“We’ve had very little turnover in our commercial lending area,” he explained, “and that has definitely helped us grow that part of our business.”

As for the overall growth strategy, Senecal said PeoplesBank has historically done it organically (it has never acquired another institution), and this trend will continue.

“When I arrived in 1995, this bank had $450 million in assets; today, we’re just about $2.1 billion,” he explained. “We did that through organic growth — putting branches in, increasing our loans, increasing our deposit base. We will continue to focus on that same strategy, although it’s definitely challenging.”

A Strong Bottom Line

When asked to compare and contrast work in the back room and on the front lines, Senecal said there are basic and very important differences.

“Having worked in the finance area, I’d say it’s very easy to make decisions looking at numbers and not understanding the customer impact,” he explained. “When you get to the front lines, you realize those decisions impact your customers, and they become more difficult.”

As he noted earlier, working in both environments will benefit him immensely as he goes about trying to move an already-lofty bar still higher.

He said he’s ready for the many challenges facing the banking industry today, and so is the institution he now leads.

In other words, the feeling is mutual — in all kinds of ways.

George O’Brien can be reached at [email protected]

Banking and Financial Services Sections

Focus on the Fundamentals

team members

John Howland, far right, with team members (from left) Mark Grumoli, commercial loan officer, Denise Coyle, chief operating officer, and Tom Meshako, treasurer and chief financial officer.

Blocking and tackling.

Those are the fundamentals of winning football at any level, or so most coaches would say. But John Howland uses that phrase often as he talks about banking.

He uses it, as those on the gridiron do, in reference to maintaining a keen focus on the basics, the things one has to do right in order to achieve success. And in the case of financial institutions, that list includes some things that most would consider obvious — everything from good customer service to attractive products and services; from having competitive rates on those products to giving back within the community.

But there are also many items that fall into the category of ‘fundamentals’ that are perhaps less obvious, said Howland, president and CEO of Greenfield Savings Bank, a position he took roughly 16 months ago.

In that category would fall such things as imaginative new products, such as GSB’s ‘express business loan,’ a name that pretty much says it all (more on that later), as well as efforts to stay on the cutting edge of technology. Also fitting that description is the bank’s recent hosting of a meeting of the Franklin County Young Professionals Assoc. and other efforts to help foster leadership, as well as a somewhat related philosophy, said Denise Coyne, GSB’s executive vice president and COO, one centered on the notion that taking care of employees is as important as taking care of customers.

Then, there was the recent Asparagus Festival in Hadley, the town famous for its production of that vegetable. GSB was a sponsor of that event, said Howland, noting this alone constitutes blocking and tackling by supporting a local tradition and helping it continue. But the bank went further, renting additional space beyond that traditionally given to sponsors and awarding some of it to commercial customers who could benefit from the exposure and foot traffic.

“They were able to show their goods and gain awareness,” said Coyne. “It was a great opportunity for them, and for us as well, to show we’re working with businesses like that.

“We continue to do the blocking and tackling of banking — looking at updating technology, continually refining the offerings we have for our customers, and facilitating and expediting the interaction between the customer and the bank,” he added in an effort to sum things up. “We’re committed to organic growth through customer demand — it’s as simple as that.”

But there’s nothing inherently simple about executing all of that, and for this issue and its focus on banking and financial services, BusinessWest talked with several leaders at GSB about how it’s accomplished by a focus on fundamentals — and the expansion of that term as it applies to banking.

Sticking with the Game Plan

As he talked about his first 16 months at the helm and the bank’s broad strategic plan moving forward, Howland interspersed those thoughts with observations — and commentary — about the bank’s hometown of Greenfield.

Where once its economy was in many ways dominated by large manufacturers that employed hundreds who filled the downtown’s restaurants and lunch counters, it is now characterized by smaller businesses, many of them in an emerging ‘green’ energy sector as well as the centuries-old and still-stable agricultural sector.

“Going back 40 or 50 years, there might have been 30 or 40 fairly good-sized companies headquartered here,” he explained. “Most of those have consolidated and been rolled up into large, national organizations.

“What we see now is the next generation coming through,” he went on. “And this is in many areas — food service, manufacturing, green energy. We now have a large number of small companies that make product here and ship it elsewhere; we’ve created a new economy.”

In many respects, GSB is well-suited to meeting the needs of this changing business landscape, he said, adding that very large manufacturers would likely do business with a considerably larger institution. Meanwhile, the bank’s lending sweet spot and small-business focus positions it to serve these emerging ventures.

“We have an opportunity to fuel some of this growth,” he explained. “We can be the institution that can lend to these people when they need a piece of equipment or buy a piece of land. We can be there to assist them.”

That’s just one of many reasons why Howland and his team are optimistic about the prospects for the future — when it comes to the community and the bank. Both are at intriguing junctures in their history.

When he talked with BusinessWest soon after his arrival early last year, Howland, who came to Greenfield from First Bank of Greenwich, described the institution, and the cities and towns it served, with terms like ‘stability,’ ‘continuity,’ and ‘community-centered flavor,’ and what he’s seen and heard since has only reinforced those sentiments.

“This is a wonderful area, not just Greenfield but all of Franklin County,” he said, noting that he and his family have relocated there. “It’s an incredibly close-knit community, and one of the things I really like about this area is that multiple generations can live together; I’ve lived in areas where we have more transient populations where people come and people go. But in this part of the state, it’s not unusual to see parents and children living next door to each other. And that makes for a very special community.”

Later in that discussion with BusinessWest early last year, Howland said the bank was well-positioned for continued stability and growth because of its firm roots in the community, expanding commercial-loan portfolio, and presence in a region that was not as heavily banked — or ‘overbanked,’ as many would say — as other areas in Western Mass.

And, again, his experiences to date have only added figurative exclamation points to all of the above.

For these reasons, Howland said GSB doesn’t have to become preoccupied with gaining size and scale — as so many other institutions across the region have, as witnessed by the spate of mergers and acquisitions and rash of new branch openings — and remains focused on growing organically.

“Growth through acquisition is not really our strategy,” he continued. “We would consider an acquisition if we felt that it made sense, but we really are focused on enhancing our position within the markets that we serve and complementing the services we provide to our customers to expand our relationships with them.”

Gaining Ground

Overall, GSB is focused mostly on maintaining the status quo and growing market share across the spectrum of product lines — through more of that blocking and tackling.

“Our strategy is pretty straightforward, and there’s no magic to it, really; it’s about providing the best service we can provide for customers, and attracting both loans and deposits,” he explained. “There are no silver bullets, and no rabbits you can pull out of a hat.”

But there is plenty of room for innovation and creativity, he went on, pointing to products like the express business loan. Through the program, said Mark Grumoli, senior vice president and commercial loan officer, businesses can get up to $100,000, sometimes in 24 or 48 hours.

Products like this one have enabled the bank to maintain strong market share in Franklin County but also move well beyond ‘dabbling’ in neighboring Hampshire County and especially Northampton, a term he said he would apply a decade ago.

“Over the past eight years, much of the loan growth, especially on the commercial side, has come in Hampshire County,” he said, adding that this has been achieved through a combination of awareness, direct presence (new branches in Amherst and Northampton), and a relationship-driven focus.

There’s also — and this is quite timely — ‘Buy in July,’ a program the bank has staged for a quarter-century now that encourages homebuyers to step up during what is a traditionally the busiest time for that market through incentives such as a 25-year, biweekly product that is fairly unique.

“It’s programs like this that really help the mortgage department,” said Coyne, adding that, for the past 14 years, the bank has been the top residential lender in Franklin County and has registered 38% growth in that realm within neighboring Hampshire County. “It’s because of programs like this that really help borrowers out.”

But this business of blocking and tackling goes beyond products and services, said those we spoke with, a philosophy that brings Howland back to that meeting of the young professionals and, more importantly, a commitment that goes beyond making the lobby available for a meeting.

“We believe that this group is very important to the future of Franklin County,” he explained. “A lot of the outlying areas in the state, those outside the urban areas, are suffering from an aging population; in Amherst, the fastest-growing segment of the population is 80- to 90-year-olds.

“So we’re trying to support, in any we can, the environment for younger people in Franklin County,” he went on. “And we’re doing the same in Hampshire County. This is the kind of basic stuff a community bank needs to do. I’m not expecting any transactions out of this; it’s about building community and making the community stronger.”

Scoring Points

As he continued to talk about continuity and a desire to continue doing what the bank has always done, Howland pointed to the name over the door and on the stationery as perhaps the most visible example.

Indeed, at a time when almost every other institution has dropped the word ‘savings’ for one reason or another, GSB has no plans to follow suit.

“We were Greenfield Savings Bank then, and we’re Greenfield Savings Bank now,” he said, adding that this consistency has a lot to do with history, tradition, pride, and mission.

But also, it’s not really something that needs to be done to propel the bank forward and generate growth.

That assignment comes down to blocking and tackling — and the bank has no intention of losing its focus on those fundamentals.

George O’Brien can be reached at [email protected]

Banking and Financial Services Sections

Proposed Rule Changes the Playing Field in Many Ways

By Charlie Epstein

CHARLIE EPSTEIN

Charlie Epstein

After a five-month comment period, four days of public hearings, more than 3,000 comment letters, some 300,000 petitions, more than 100 meetings with industry stakeholders, and nearly a year to the day that the Department of Labor (DOL) unveiled its ‘conflict of interest’ proposed rule, we ‘the people’ have a new fiduciary regulation.

The new rule is meant to move the needle when it comes to advice offered to the largest pool of retirement savings in America today — nearly $12 trillion in retirement assets and $7 trillion in IRA assets.

Depending on who you talk to and which side of the investment-advice-fiduciary industry you are in, this more than 1,060 pages of regulation by the DOL represents the best of times, the worst of times, or, more likely, something in between.

So, what’s in this final regulation — and what do you, as a consumer with an IRA or business owner offering a 401(k) plan to employees, need to know?

The ‘New’ Fiduciary

First of all, any individual (think of your current advisor, broker, or consultant) receiving compensation for making investment recommendations that are individualized or specifically directed to a particular plan sponsor running a retirement plan, plan participant, or IRA owner for consideration in making a retirement decision is now a fiduciary.

Prior to this rule, the majority of broker-dealers and wire houses refused to allow their brokers to be fiduciaries when providing advice to a retirement plan. The fact of the matter, is, in reality, in spite of what these organizations may have said about their brokers, it was the actions of their brokers that actually ‘deemed’ them to be fiduciaries, regardless of what their parent companies, legal departments, and executives may have said.

Someone is a fiduciary by their actions, not by who they say they are. This new rule was the path forward for the DOL to insure that any advisor, regardless of what they may say they are, will now be a fiduciary and will need to behave with the highest standard of care, prudence, diligence, and loyalty to 401(k) plan participants and IRA holders (more on this to follow).

Beginning in April 2017, if an advisor provides recommendations regarding any and all retirement accounts, such as 401(k), 403(b), IRA, etc., they will be a fiduciary under ERISA.

Being a fiduciary under the final regulation means an advisor must provide impartial advice in the clients’ best interest and cannot accept any payments creating conflicts of interest — this would be compensation that varies based on the recommendations — unless the advisor qualifies for an exemption to what would otherwise be considered a prohibited transaction (the BIC exemption).

Being a Fiduciary

Anyone who is a fiduciary must adhere to the following requirements:

• They must have a duty of loyalty to the person or persons they serve — think 401(k) plan participants or IRA holders;

• They must have a duty of prudence, acting with a standard of care, skill, prudence, and diligence and to act in the same way that someone ‘familiar with such matters would act’;

• They must disclose all the services being provided;

• They must disclose the fees and expenses for offering such services;

• They must make sure those fees are ‘reasonable’; and

• They must disclose and avoid any conflicts of interest.

Fiduciary Compensation

As already mentioned, anyone acting as a fiduciary can only receive ‘levelized compensation.’

For many advisors providing advice to the 401(k) and IRA industry, this will represent a significant change in not only how they offer their services, but how they will be compensated going forward. Many 401(k) plan providers pay both direct and indirect compensation to both brokers and the broker/dealers they work for. This indirect compensation may be paid as 12b-1 compensation from the mutual funds inside a 401(k) or IRA. It may be in the form of indirect compensation brokers receive from the companies they work for in the form of incentive compensation arrangements, trips, even seminar training and dinners. All of this ‘indirect compensation’ will be prohibited under the new standard of care.

Benefits to the IRA Consumer and Plan Sponsors of 401(k) Plans

Going forward, it will be much easier for consumers in IRAs and businesses that sponsor 401(k) plans to understand the services their advisor provides and the compensation they receive for those services. While the new rule does not require that a fiduciary to a 401(k) plan have a contract, this author believes it would be in the best interest of all parties that the advisor/consultant to a 401(k) plan have a service agreement (contract) that details the specific fiduciary and non-fiduciary services they will provide to the plan, the ‘level fee’ they will charge, and an industry fee-benchmarking report that demonstrates the ‘reasonableness’ of the fees being charged. In this fashion, the plan sponsor fiduciary will have a prudent and documented due-diligence process from their advisor to justify their services and fees.

The BIC

For advisors interested in preserving (or establishing) a variable compensation model, the DOL has paved a path, though one fraught with a number of complicated and potentially expensive disclosures. Known as the ‘best interest contract exemption’ (BIC), this exemption requires a commitment by the firm and the advisor to:

• Provide advice in the best interest of the client;

• Charge only reasonable compensation;

• Avoid misleading statements about fees and conflicts of interest;

• Adopt policies and procedures designed to ensure that advisors provide best interest advice; and

• Prohibit financial incentives for advisors to act contrary to the client’s best interest.

The Treasury Department and the DOL made it clear that advisors can continue to sell commission-based products (think variable annuities and indexed annuities) and that these products have a place in an individual’s financial plan, provided the advisor demonstrates they are in the client’s best interest and not the advisor’s. The DOL’s concern for many years has been that these are complicated products that most individuals do not understand and therefore may have been sold not in their best interest.

In addition, many in both the DOL and Treasury have long been concerned that, since these products are more expensive than non-guaranteed products (think low-cost index funds), and typically pay variable compensation to agents and brokers, it is harder to discern whose best interest they are being sold for.

The BIC exemption will allow advisors to offer these valuable products where they are and can be demonstrated to be in the best interest of the client. As Tom Perez, Labor secretary, stated during the announcement of the new fiduciary standard, not everyone should drive a Yugo.

Price alone, in the absence of value, is not and should never be the deciding factor for every consumer. The new regulation contains language that emphasizes that fees alone are not the only factor when making investment decisions.

Takeaways

1. A two-year phase-in of the new regulations. First, beginning on April 1, 2017, all advisors to any new 401(k) plan or IRA arrangements will be fiduciaries, and may only receive level compensation, unless they plan to qualify under the BIC exemption.

Second, beginning on April 2, 2018, all existing client-advisor IRA relationships will need to provide new disclosure to the investor.

All of this will require a massive undertaking by a significant segment of the investment industry in increased disclosure, compliance, and government oversight. Look for fees and expenses to the consumer to rise for the small consumer and shrink for the larger 401(k) and IRA accounts.

2. Exodus from the 401(k) business. It is the opinion of this author that 50,000 to 100,000 advisors and firms will exit the 401(k) business in the next two to five years due to increased compliance and litigation.

State Farm already has announced it will exit the 401(k) business and its advisors will not be allowed to sell 401(k) plans.

3. Increased fee litigation. There have already been numerous cases against 401(k) service providers for ‘excessive fees’ that have settled in the $30 million to $100 million range. One case has gone to the Supreme Court (see Tibble vs. Edision). Look for the number of cases to increase, and the size of the 401(k) plans that will be sued to decrease from $100 million plans down to mom-and-pop $1 million plans, as the legal community lines up to be the ‘enforcer’ of this new fiduciary enforceable standard of care. The reality is, the DOL does not have the legal power in the Constitution to enforce the regulation it writes; only the U.S. Treasury can.

The U.S. Treasury has already acknowledged it does not have enough auditors to investigate and enforce this new regulation. The DOL, knowingly and willingly, wrote this rule, all 1,060 pages, with the intent that the legal community would be the enforcer of the regulation.

In addition, five industry groups have already filed lawsuits to block the DOL’s fiduciary rule for the negative impact against consumer choice and government overreach. Look for these cases to accelerate over time.

For a lively and entertaining view of the ongoing fiduciary debate that will certainly continue for years to come, I encourage you to visit YouTube’s “Last week Tonight, John Oliver Retirement Plans” (HBO) and my “America’s 401(k) Coach Rips John Oliver over Retirement Plan Slam!”

Charlie Epstein is the author of two industry leading books — Paychecks for Life, How to Turn Your 401(k) Into a Paycheck Manufacturing Company, and Save America Save, the Secrets of a Successful Retirement Plan. He is the president of Epstein Financial Services, a fiduciary and registered investment advisory firm; [email protected]

Banking and Financial Services Sections

The Relationship Between Lender and Company Is a Key Factor

By Steve J. Schwartz, Esq. and David K. Webber, Esq.

Steve Schwartz

Steve Schwartz

David Webber

David Webber

In the May 13, 2013 issue of BusinessWest; we penned an article titled “A Primer on the ESOP.” This is an extension of that article that specifically focuses on financing an ESOP, or employee stock- ownership plan, and informs the reader of the lender’s concerns in making a loan as part of the structure of a leveraged ESOP.

In the prior article, we described an ESOP as follows: an ESOP is a qualified defined-contribution retirement plan established under §§ 401(a), 409, and 4975 of the Internal Revenue Code. Unlike other qualified plans, an ESOP is designed primarily to invest in shares of a closely held corporation, referred to in the code as ‘employer securities.’ The sponsor company may transfer the shares of common stock as a qualified contribution, or the ESOP may purchase shares from shareholders or the sponsor company. In a ‘leveraged’ ESOP, the company takes out a bank loan to fund the purchase, then lends the funds to the ESOP to finance the purchase of shares. A 100% sale of shares to an ESOP may require a series of smaller transfers because 100% bank financing is unlikely.

The selling shareholder may receive cash as partial or complete consideration for the shares. In the alternative, or in addition to cash, the selling shareholder may self-finance a portion by accepting a note as partial payment. As the note is paid off in installments, the plan trustee transfers shares to each of the employees’ accounts, eventually vesting all the stock in employee accounts in accordance with the terms of the plan.

The lender has its usual concerns in making the loan, which will eventually be used to purchase shares by the ESOP. The considerations do not vary much between financing an ordinary loan and financing an ESOP. The lender’s customary due diligence is utilized to assess the credit worthiness of a borrower. If the company is a customer of the lender, it will normally have a relationship with the current management.

If the ESOP is part of an exit plan and there will be a change of control, the lender will be concerned with the capacity of the new management team to manage the business. It is important that the new management team be involved in dealing with the lender in obtaining the loan. In the event there is not a change of control, it will also consider this issue for the future in case there is a change of control due to death or disability or part of a future plan to vest control in new management. Hopefully, the lender will have experience in dealing with an ESOP transaction.

It is important for the company to prepare a financial plan for the period of the loan so that its needs for financing are included in its request for financing. It is also important that working capital and other financial requirements are included in the request. The company’s request should consider any contingencies.

The lender will analyze the company’s financial circumstances, including the security for its loan and the ability of the company to make the loan payments. The lender will also consider the company’s other financing requests.

As part of the ESOP planning process, the company shall be required to engage an independent appraiser to determine the value of the shares to be sold as part of the ESOP.  The lender will review the appraisal carefully in its approval process. It will provide the lender with an independent view of the company and its prospects.

The terms of the loan should be keyed to the ability of the company to generate profits. However, there are limitations on the term. An ESOP is a retirement plan and must comply with applicable laws; the internal note and pledge agreement from the ESOP to the company will be subject to federal government scrutiny. A term that is too long, or an interest rate greater than market rate, is suspect because it could unduly favor the selling stockholder over the employees.

Shares are released to the employees’ individual accounts on the payment of the loan. A longer term would affect the release of shares to the ESOP participants: the longer the term, the slower the release of shares. The term and interest rate of the note should therefore be reasonably short (fewer than 10 years) in order to mitigate excess scrutiny from the IRS and Department of Labor.

The loan normally will be secured by all the assets of the company. It is not unusual for the lender to request the personal guaranty from the stockholders. Also, it may be necessary for the proceeds of the sale to be pledged as additional security for the loan. The lender may agree to reduce the additional collateral as the loan is repaid.

If the company has existing loans or new loans with the lender, there will be cross-collateralization, cross-default, and cross-guarantee agreements. If any loan is in default, the default will apply to all the other loans. In the event a stockholder is owed money by the company, the lender may require that the stockholder subordinate the obligation to the lender and restrict the payment terms of the obligation to protect the company’s cash flow. The lender may require life insurance on the management team to be assigned to the lender as additional collateral for the loan.

As with any loan, there will be annual reporting requirements, financial covenants, and other performance metrics. The terms should be clearly set out in the commitment letter. The lender may have other requirements such as insurance, landlord’s consent, mortgagee’s consent, and collateral control agreements if some of the assets are not on the premises of the company.

The loan from the company will be documented by a separate note and security agreement to be signed and delivered simultaneously with the loan to the lender. In addition, there will be a stock-purchase agreement between the ESOP and the seller(s) of the shares.

The lender will require that the proceeds of the ESOP loan must be used solely to purchase shares in the company.  The ESOP will be able to repay the note from company contributions to the ESOP or from dividends paid to the ESOP from the company.

In summary, the relationship between the lender and company is a significant factor in the establishment of the ESOP, financing the purchase of company shares and the future of the business.  Even if a lender is initially skeptical, the lender can become an invaluable part of the business-succession team once the plan has its blessing.

We want to thank Vicky Crouse and Frank Crinella of TD Bank, N.A. and L. Alexandra Hogan, Esq. of Shatz, Schwartz and Fentin, P.C. for their assistance in preparing this article.

Attorney Steven J. Schwartz, of Shatz, Schwartz and Fentin, P.C., concentrates his practice in the areas of family business planning, mergers and acquisitions, corporate law, and estate planning; (413) 737-1131; [email protected]. Attorney David K. Webber, of Shatz, Schwartz and Fentin, P.C., concentrates his practice in the areas of closely held business, corporate law, real estate, trusts and estates, and bankruptcy; (413) 737-1131; [email protected].

Architecture Sections

Blueprinting a Growth Pattern

Robert Stevens

Robert Stevens

Tessier Associates has been in business since Warren Harding was in the White House and Prohibition was the law of the land. No architecture firm can survive that long — and through all those twists and turns in the economy — without being resilient and resourceful, and the Tessier firm has been both. In recent years, for example, it has been diversifying its portfolio, complementing a dwindling amount of public-school work with projects in higher education and other sectors, and now has a steady supply of work in the pipeline.

The photos, sketches, and blueprints adorning the front entranceways and conference rooms at architecture firms usually tell a story — or, to be more precise, a big part of the story.

Indeed, collectively, these images become a highly visible, although not always organized, chronicling of a company’s history, examination of its portfolio, and window into its past, present, and, in some ways, its future.

This is definitely true at Tessier Associates, the nearly-century-old firm that has long been doing business out of a large storefront on the second floor at Tower Square in downtown Springfield. The photos in the front lobby and hallway leading to the production areas speak to the company’s proud history, which has included everything from dozens of school projects to a number of new churches and a host of commercial buildings, including bank branches, which became a prolific niche for a number of years (more on that later).

The main conference room offers more of the same, but specifically a look at more recent history — and a very necessary diversification of the portfolio to reflect changing times when it comes to designing new public schools, additions, and renovations.

“It’s much more difficult to get school projects today. There are fewer of them out there, and the selection process is now out of Boston — the rules have changed,” said Robert Stevens Jr., long-time principal with the company, noting that, while local school systems once did the hiring of an architect for a project, now those decisions are the purview of the Mass. School Building Authority.


Go HERE for a list of Architecture Firms in the region


This explains why the conference room still features photos and drawings of some of the firm’s school projects — including Lenox Middle/High School, which actually dates back to the late ’90s, and Hampshire Regional High School, newer work but still more than a decade old — but far more wall and easel space is now devoted to work with area colleges and businesses, which have become a far larger and more reliable pipeline of projects.

There are several images, for example, of a new dining commons being planned by Western New England University. Curved, and featuring large amounts of glass and a host of different and unique dining areas, the structure currently taking shape on the drawing board reflects a heightened interest in food and food service at institutions of higher learning, said Stevens.

“Food is a big deal now, and it’s important when it comes to recruiting students — you have to be on the cutting edge of this,” he explained. “These facilities now require a lot of social space, a lot of dining opportunities, a number of seating arrangements, and some quiet space; there’s a lot that goes into these now.”

The walls tell of other recent projects at Bay Path University and Springfield College, and also the Big E, which is exploring possible renovations to several of its historic buildings, including the coliseum (see related story, page 6). Stevens noted that such private-sector work is both necessary and, at the moment, at least, steady enough to keep the firm busy and in a contemplative mode when it comes to expansion and bringing on more staff.

dining commons at Western New England University

One of the Tessier firm’s renderings of the planned dining commons at Western New England University.

Still, like many in businesses across virtually every sector of the economy, Tessier has some doubts about the staying power of the current expansion, if one chooses to call it that, and noted that there are risks to bringing on more staff, especially in a sector as vulnerable to swings in the economy as this one.

He believes the economy is improving, but, like most others, would like to see more solid evidence that the upswing is real.

“We could be hiring others, and we probably should be,” he explained. “When you’re leery about whether the economy is really improving, you tend to hold back, even when you think you need to hire.”

For this issue and its focus on architecture, BusinessWest takes an in-depth look at … well, the walls and easels at Tessier Associates and at what they reveal about where the company has been, and where it’s going.

Designs on Diversification

Tracing the history of the company, Stevens said it was started by Henry Tessier in 1923, who was still working part-time when Stevens joined the firm in the mid-’80s.

“Henry worked until he was in his mid-90s,” he recalled. “He obviously liked what he did — he was still coming into the office every day.”

Under the tutelage of Tessier and later his son, Bob, and fellow partners Doug Engebretson, who retired in 2012, and Stevens, the firm developed a number of niches within the broad realm of architecture, including everything from churches to those aforementioned bank branches.

The former remains a source of some work, said Stevens, noting that the portfolio includes several projects in this category, including the new Immaculate Conception Church in Holyoke, St. Patrick’s Church in Springfield, Nativity Church in Holyoke, and Holy Name Church in Springfield.

As for those bank braches, they were a solid source of work decades ago as area institutions sought to develop a presence in many of the emerging suburbs.

“There was a period of time just after I came here when we really did nothing but bank branches,” he said, noting that, in those days — and perhaps not so much now — architects could, and did, get creative with design of the teller lines and other elements of those structures to give them individuality.

But the firm’s main bread and butter starting in the mid-’80s was public-school projects, said Stevens. The portfolio includes initiatives across this region and beyond, with most of them in response to growing populations and/or a need to replace or modernize aging infrastructure. The list includes additions and renovations at Frontier Regional School in South Deerfield, Commerce High School in Springfield, and JFK Middle School in Northampton, as well as new construction at Quarry Hill Elementary School in Monson and Grafton Elementary School in Grafton, among many others.

But by 2004, the pipeline of school projects dwindled to a trickle as the state all but stopped funding schools and changed the formula for how such initiatives were funded. By the time conditions changed and money started flowing more freely, the selection process for architects had changed, adding another layer to the challenge of landing such projects. The last one the firm handled was Hoosic Valley Regional Middle and High School in Cheshire in 2012.

With school work dwindling and prospects for improvement in that realm dim, the firm has done what it has always done since Warren Harding was in the White House and Babe Ruth was leading the American League in home runs, said Stevens — create a diversified portfolio and adjust its focus to where the work happens to be at a given time.

Indeed, an architecture firm cannot survive 93 years and an untold number of economic twists and turns, including both the Great Depression and Great Recession, without being flexible, resourceful, and resilient, and the Tessier firm is deserving of all those adjectives.

Drawing on Experience

Recently, for example, the firm has garnered a number of projects in higher education, tapping into one of the pillars of the region’s economy.

“We’ve been relying mainly on private work in recent years,” said Stevens, “and we’ve been successful in getting some nice projects. We’ve done a lot of work at area colleges and universities.”

Perhaps the signature initiative in this realm is the $30 million Center for the Sciences and Pharmacy building on the Western New England University campus, undertaken in 2009. “That was a significant project for us, coming right after the recession,” Stevens explained.

But there have been many others, including several projects at Bay Path University, including, most recently, renovation to some of the science labs. There has also been work at Springfield College, Elms College, and other schools.

The Center for the Sciences and Pharmacy

The Center for the Sciences and Pharmacy building at Western New England University is one of Tessier’s signature projects.

Meanwhile, there have been other forms of commercial work, including an office addition and renovation project for UniFirst Corp., a Wilmington-based supplier of uniforms and provider of related services that has a facility in Springfield, as well as another site in New York that the Tessier firm is also working on.

Those projects and others have provided Stevens with a sense that the economy is improving, that business owners are becoming more confident about the immediate future, and that this scenario may continue for some time.

And this sentiment wasn’t present in the years immediately after the Great Recession, even when analysts were saying the economic picture was brightening and businesses in many sectors, including those in the broad realm of construction, should see some trickle-down.

“Things were questionable in the few first years after the recession ended — I would hear that the economy was improving, but we weren’t feeling it,” he explained. “But at this point, it seems like there’s more activity.

“We have backlog — you can see enough work out for a year or two,” he went on, “and that’s pretty unusual for recent years.”

This is what he tells builders who will call and ask him what he thinks and what he knows — calls that come often, because, historically, architecture has been an accurate barometer of the economy; when firms are busy, that’s a good sign, and when they’re not … well, no explanation needed.

“The climate is improving,” he said in conclusion. “I’m feeling much more optimistic than I was a few years ago.”

Lines of Business

Tucked in a corner of the Tessier firm’s conference room is an aerial photo of the Elms College campus, complete with the wellness center the company designed.

Stevens couldn’t pinpoint the date of that project, but did know that it was some time ago. That was an acknowledgement that what’s on the walls and easels of such firms don’t exactly (or always) reflect current events.

But those items tell a story, or, as noted earlier, the story.

In this case, it’s one of a history of creativity — both on the drawing board and in business itself — and resiliency.

In other words, Tessier has developed a blueprint for surviving and thriving in changing times.

George O’Brien can be reached at [email protected]

Health Care Sections

Out of the Darkness

HCNcoverART0616

For a decision of such finality, the choice to end one’s life has come easier over the past 15 years, according to both national and statewide statistics. The reasons for the increase in suicide rates are myriad — economic stresses, mental illness, social isolation, substance abuse, and too many others to mention — and the outward signs are often unclear. But resources are available across the region to stem the tide, if only at-risk individuals can be identified in time and steered toward the help they need.

It’s alarming enough, Melissa Perry says, that overall suicide rates, both nationally and in Massachusetts, are on the rise. But she is struck by some of the details that comprise the larger trend.

For example, suicides among girls ages 10 to 14 tripled over 15 years, from about 50 in 1999 to 150 in 2014 — a relatively small number compared to the general population, but a distressing statistic nonetheless. Perry, director of Behavioral Health Nursing at Holyoke Medical Center (HMC), suggests one factor behind this increase: the pervasiveness and incessance of bullying in the social-media age.

“When we were young, we were able to get away from the name calling and getting picked on in school, just by going home,” she told BusinessWest. “Social media has kicked it up a notch. Girls are picked on at school and then continue to get picked on every time they’re on social-media sites; it continues and never ends. I really think that plays a huge role in girls struggling. Even switching schools doesn’t solve the problem.”


 Click HERE to view a chart of Behavioral Health Centers in the area


According to a study released earlier this spring by the National Center for Health Statistics, it’s not just teen and tween girls at risk. After a period of consistent decline in suicide rates in the U.S. from 1986 through 1999, rates for the overall population have increased steadily from 1999 through 2014, the last year for which data is available. In fact, 42,773 people died from suicide in 2014, compared with 29,199 in 1999.

“That’s a significant jump,” said Nina Slovik, a social worker and clinic director at the Center for Human Development, before detailing some possible drivers behind the surge. “The economic climate is a very significant factor — job loss and financial insecurity. Social isolation is a factor, which can be seen in the rate of divorce and the increase in the number of people who are not getting married and might not be socially connected. And you certainly cannot discount the enormous increase in drug addiction and substance abuse.”

Nina Slovik

Nina Slovik says suicide triggers range from economic insecurity and social isolation to substance abuse and mental illness.

The bottom line is that suicide is now the 10th-leading cause of death in the U.S., and number two among the 15-24 age group. Slovik noted that African-American men are the only demographic group whose suicide rate is down, and the only age group to decline is men and women over 75.

“The problem is widespread across all the other age ranges,” she said, adding that people who feel disenfranchised, such as LGBT individuals, are at higher risk, while those who have made suicide attempts in the past are much more likely to try again in the future — about 40 times more likely, in fact, than those who have never done so.

“The causes can be complicated,” said John Kovalchik, HMC’s Outpatient Behavioral Health manager. “There’s a family history of violence, sexual molestation and abuse, a history of substance abuse or mental illness, being incarcerated, having access to firearms, things of that nature.”

Access to tools of violence don’t tell the whole story, however. While the share of suicides involving guns has declined since 1999 — from 37% to 31% — suffocation deaths, including strangulation and hanging, are up from less than 20% to about 25%, perhaps reflecting the fact that everyone has access to such means, while gun-ownership rates are down in some states.

The larger question, of course, is what to do about what Slovik characterizes as not just a psychiatric problem, but a full-blown public-health issue. The professionals who spoke with BusinessWest agree that suicide prevention and intervention resources abound in Western Mass., but identifying at-risk individuals and connecting them to help isn’t always easy. But through education and greater public awareness, they say they’re making strides.

No Boundaries

While financial struggles are rampant at a time when Americans hear the recession is over, yet many are still unemployed or underemployed; and while substance abuse is a growing issue in many states, including Massachusetts, the risk factors for suicide extend far beyond those timely factors, ranging from mental illness and a history of abuse to lack of an emotional support system to family disruptions like divorce and lawsuits, according to the Mass. Coalition for Suicide Prevention.

“Suicide doesn’t really have any boundaries; it’s one of those things that can occur in any population,” said Robert Reardon, who chairs the Pioneer Valley Coalition for Suicide Prevention, the statewide organization’s regional chapter. “We want to make sure the message we’re sending out about suicide prevention is as diverse as our communities in the Pioneer Valley.”

Reardon is also director of Outreach and Community Services for Tapestry Health, a regional network of public-health services that, as one part of its mission, links people to suicide-prevention services and offers workshops and educational programming aimed at making people more aware of the outward signs of potential suicide.

Those signs vary widely, but can include feelings of hopelessness; preoccupation with death; withdrawal from family, friends, sports, and social activities; drastic behavioral changes; depression, anxiety, and eating disorders; giving away possessions; taking unnecessary risks; lack of energy; inability to think clearly or make decisions; loss of interest in work or school; changes in appetite, sleeping habits, or personal appearance; and financial worries — just to name a few.

However, the Mass. Coalition notes, individuals also possess ‘protective factors’ — personal, familial, and interpersonal factors that help one cope with life. These range from a sense of humor to good problem-solving skills; from strong faith to good nutrition and regular exercise; from connectedness to family or church to a sense of purpose.

“Nobody is just one thing — a big mass of depression or mental illness or alcoholism,” Slovik said. “Everyone has particular strengths and skills. We have to look at the larger picture.”

Kovalchik said it’s important that people are able to recognize not only the warning signs of a potential suicide, but these resiliency factors, so they can help their loved one focus on them instead of their stressors.

Which means talking and asking questions when warning flags emerge. The coalition emphasizes that talking about suicide will not put the idea into someone’s mind; rather, most people will be relieved that someone has noticed their pain and are willing to help.

After all, the organization notes, people who die by suicide generally do warn others, and may be trying to get attention in order to get help — and they should be taken seriously.

“It never hurts to ask someone questions,” Slovik said. “Whether it’s a family member, friend, co-worker, whomever, if for any reason you think a person is at some risk, you won’t create a suicidal person by asking direct questions; that’s a myth, and it’s not borne out by clinical experience or data.

“Asking people about suicide does not increase the risk,” she went on. “In fact, it may decrease their sense of isolation, the feeling that nobody knows what they’re going through, that nobody has ever felt like they do. There’s a lot of shame and embarrassment associated with feeling suicidal, and if you can overcome that sense of isolation, that’s a good first step that can lead to a larger discussion.”

She doesn’t recommend giving clinical advice to someone who is suicidal, but it’s important to listen closely, express understanding, and suggest resources that might be able to help.

“There are often shame-based associations with being depressed, being anxious, being frightened, being bullied,” she told BusinessWest. “But if you can break down the barrier by getting them to talk about it, that can be very meaningful. Getting in the door is a big deal.”

Medical professionals are increasingly doing their part, Kovalchik said, by screening patients who arrive in emergency rooms for behavioral-health issues, substance abuse, and past trauma, to name a few signs. “It’s important that we don’t separate the body from the mind, as we have historically.”

Melissa Perry

Melissa Perry

The importance of speaking directly to someone suspected to be a suicide risk is often magnified when dealing with a teenager, Perry said, because this group tends to be more impulsive and often responds to a stressor more quickly than someone a bit older.

“If someone might be thinking about suicide, having that conversation — and then supporting them and offering them hope — is a big step,” Reardon said. “Then you can help that person seek help through other resources; there are a lot of mental-health services and organizations in the region that can provide support.”

Healthy Choices

For its part, Tapestry works with recovery learning communities, or RCLs, a program of the state Department of Mental Health to offer information and support to people struggling with mental illness, and that initiative’s Alternatives to Suicide peer-support groups.

“Those have been well-received by folks because they’re run by people who have attempted suicide or had long-standing thoughts of suicide,” Kovalchik said. “But you have to get someone to buy in and seek help. That is the tricky piece, I think.”

Meanwhile, the Mass. Coalition for Suicide Prevention, since its founding 17 years ago, has worked with the state Legislature to get more than $28 million allocated for suicide-prevention services targeting veterans, older adults, college and university students, youth and young adults, mid-life adults, and LGBT youth.

The coalition’s training efforts have reached nearly 31,000 advocates, teachers, clinicians, substance-abuse staff, elder advocates, and youth service organizations, among others, and the organization co-sponsors 14 Massachusetts Suicide Prevention Conferences, attracting hundreds of participants each year.

Efforts like these, and the programs operated by agencies like the Center for Human Development, are making a difference in the lives of those they reach, Slovik said, even though too many are still succumbing to suicide.

“The most significant approach to preventing suicide is getting people to find a place where they can talk about whatever is going on in their lives — that therapeutic relationship with somebody that can help engender a sense of hope,” she said. “Hope is really the most critical factor in preventing suicide. How do you instill hope in people? It’s relationship-based: talk to people, find out what their risk factors are, and focus on their protective factors.

“It’s a complex problem, and there are no guarantees,” she concluded. “We don’t kill anyone, and we don’t save anyone. If we’re lucky, we help people save themselves.”

Joseph Bednar can be reached at [email protected]

Health Care Sections

Thinking Outside the Pillbox

Dr. Christopher Keroack

Dr. Christopher Keroack

Dr. Christopher Keroack, like so many who grew up in the Northeast, recalls a childhood visit to Riverside Park in Agawam, now known as Six Flags New England. Back then, at the center of the grounds was a crowded area known as the International Plaza, connecting the north and south sides of the amusement park.

He was 7 years old on this particular visit, and his mother told him to hold her hand while crossing the plaza, so he did — he thought. “The density of the crowd resembled a New York nightclub, but I struggled through it and emerged holding my mother’s hand — only, when I looked up, I was shocked to find the hand wasn’t hers.”

He describes the feeling — still resonant decades later — of being lost and frightened, and his decision to go to the park’s magic show, a location he and his mother both knew well. He sat down in the front row and cried as the show began, but the plan worked — his mother intuitively found him there a short time later, and all was right with the world again.

Keroack, director of Pioneer Valley Weight and Wellness Center in Springfield, tells this story at the start of his new book, Changing Directions: Navigating the Path to Optimal Health and Balanced Living, and retold it recently while sitting down with BusinessWest. The point is that being lost as a child is an alarming experience, and returning to a place of safety and familiarity is a hallmark of finding one’s way again.

“Part of me believes this is what has happened in the medical field,” he told BusinessWest. “Once compassionate healers, our field has transitioned into protocols, ICD-10 code diagnoses, prior-approval paperwork, and endless uses of drugs.”

As a result, Keroack — and many of his colleagues, he believes — long for a return to the “golden years” of medicine, when one-to-one relationships with patients were richer, and when doctors were committed to healing and compassionate caring, not a sea of protocols and quick-fix prescriptions. “I believe,” he said, “that we can return to those days.”

His book, published earlier this year, is a primer on the philosophy of ‘functional medicine,’ which is, at its core, a blending of the ancient arts of medicine, including Eastern medicine, and the modern approaches of scientific, Western medicine. Having studied both, Keroack has crafted a practice in the Valley that incorporates elements of these two worlds and demonstrates to patients why they should — and do — work in tandem.

“It just fits into everything all physicians originally wanted to believe in,” he said. “We went into medicine for the purpose of helping and healing people.” The book — which he calls “a field guide to navigate the confusion of healthy living” — is an effort to help people understand these concepts and put them into practice.

He likens functional medicine to a tree. The roots of the tree — unseen but taking up as much space underground as the branches do above — are what nourish the tree, not the leaves. The leaves may show the outward signs of disease,  but the deeper problems originate in the roots. “Functional medicine,” he notes, “sees the roots and knows that, by nourishing the roots, the leaves will grow.”

Another metaphor, he said, sees the body’s systems as a flowing stream, one in which pollutants and chemicals from a factory upstream are contaminating the water, creating imbalance and toxicity. The ‘downstream’ approach of Western medicine is to put a water filter on the kitchen faucet — but what about the water in the dishwasher, shower, and washing machine? Ideally, the correct approach would be to remove or divert the pollutants and chemicals at the source. That, in a nutshell, is functional medicine.

At the Core

The core of this philosophy revolves around what Keroack calls the “fab five” — food, movement, stress, sleep, and relationships — and the way they intertwine to impact one’s overall wellness.

“If we ate the correct food, stayed up on hydration, went to bed on time, had our debts paid, had harmony in our marriages, and got out of the chair and moved around, we would be radically healthier. But we don’t do these things, because we rely on pills, potions, and lotions.”

One barrier, he said, is that Western physicians are trained in pharmacology and diagnosis codes, so they get locked into that pathway. “But I get to have real conversations with people about these foundational factors, and then they get better.”

KeroackCoverKeroack is board-certified in internal medicine and bariatric (weight-management) medicine, and originally built his practice around weight loss, moving gradually into a broader wellness focus, where patients lose weight as just one benefit of a total lifestyle shift. But in addition to his formal training, he has certifications from the Institute of Functional Medicine and the Cenegenics Education and Research Foundation for Age Management Medicine.

Beyond the ‘fab five,’ each personalized health and wellness plan takes into account five foundational imbalances: nutrition, metabolism, inflammation, detoxification, and oxidation. Together, he calls them the ‘star of wellness,’ noting that “all five aspects of your health are equally important. A problem in any one leads to imbalance with the others.”

According to the Institute of Functional Medicine, “functional medicine addresses the underlying causes of disease, using a systems-oriented approach and engaging both person and practitioner in a therapeutic partnership. … By shifting the traditional disease-centered focus of medical practice to a more person-centered approach, functional medicine addresses the whole person, not just an isolated set of symptoms.”

That’s why it’s important to spend time with patients, he explained, understanding their histories and considering the interactions of their genetic, environmental, and lifestyle factors that can influence chronic disease — in a way that goes far beyond mere diagnostic codes.

At the root of functional medicine, the book notes, is the idea that the body, given the right balance of food, movement, stress, sleep, and relationships, will take care of itself.

“It’s not that complicated, but it does require discipline and planning,” he told BusinessWest. “At the same time, you can find the necessary components at the supermarket, in the backyard, and in the bedroom.”

That’s not to say medications and technology don’t play a role in modern healthcare; they certainly do. The key word is balance — and it’s safe to say many doctors lean much further in the opposite direction, putting far less emphasis on elements like food, stress, and positive relationships than they do on a prescription.

“The Western-medicine approach to illness looks at things from the bottom up — once we get sick, we can do something about it,” he went on. “Functional medicine looks at things from the top down — what can we do not only to avoid getting sick, but to optimize your health? I’d like to think most people want that. Rather than just not having diabetes, they want to be in the best health of their lives.”

Keroack claims that most people eating correctly — say, a Mediterranean diet with plenty of fruits and vegetables from all the color groups — are getting the vitamins and minerals they need from their food, but dietary supplements are often helpful. But the average consumer gets overwhelmed going into stores that sell supplements because no one has explained what will work best for them.

“I had an elite hockey player in the other day. He wanted to take some performance-enhancing supplements, but the ones he was using were all turmeric and ginger, which are anti-inflammatories, which are fine afterward, but they don’t enhance performance; he needed carnitine and taurine. Somebody sold him the wrong thing, based on the chemistry of these botanicals. Just like I can’t play hockey at his level, he’s trusting people to give him the right stuff.”

Another patient, diagnosed with yeast overgrowth, was taking a supplement better suited for liver cleansing before Keroack steered her differently.

“She had spent her hard-earned money on something intended for something else,” he said. “If you pick the wrong things, spend your money, and get frustrated, you think, ‘that’s one more provider that has not helped me.’”

Guiding Hand

Keroack, on the other hand, wants to teach patients how to maintain their own health so they’re not as reliant on medications and other trappings of modern medicine.

“In Western medicine, we talk about diet and exercise, but we don’t explain how,” he told BusinessWest. “Studies show they have more impact on diabetes than medicine, but we don’t educate people — really educate them — in diet and exercise at all.”

The bottom line, he went on, is that the simple tenets of functional medicine can seem, frankly, too good to be true to a generation raised on pharmaceutical marketing. “But if you change your food, change your movement patterns, change your stress levels, you’ll get better. And it’s logical and intuitive that you would.”

Keroack’s father was an emergency-room physician decades ago, using much more primitive technology than doctors have available to them today — and he wouldn’t recommend a return to that. But why, he asks, not marry today’s capabilities with the sensibilities of yesteryear, a practice of medicine based on communication, understanding, and the doctor-patient relationship?

“I’m shooting to return to the golden age of medicine, just not using old-school technologies,” he explained. “I understand that technology has changed, but I’d like to see our policies and protocols match the information that’s available. There is legitimacy to the colors in fruits and vegetables, the inflammatory effects of gluten and dairy, the chemical effects of pesticides and herbicides and pollutants. There’s real science behind that. We don’t have to stop at lowering calories and walking 10,000 steps.”

In the end, when he thinks of how Western medicine has evolved, he returns to that story of a 7-year-old at Riverside losing — and then finding — his way.

“We think we’re holding on to a hand we trust, only to go through the journey and find it’s not what it was,” he said. “We’ve been disheartened, disillusioned. Patients are constantly telling me, ‘doctors have no time to spend with me and listen; all they have is pills.’”

Through his practice — and, now, his book — Keroack is doing his part to change that paradigm.

Joseph Bednar can be reached at [email protected]