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At These Eateries, Guests Will Determine Pace of Reopening

Ralph Santaniello

Ralph Santaniello says his customers, and not the governor, will determine how quickly and how profoundly he increases capacity at the venues within the Federal Restaurant Group.

Ralph Santaniello says he’s read the language contained in Gov. Charlie Baker’s decision to bring the state into the final stage of his reopening plan at least a dozen times.

And each time, he came away with the conclusion that the phrase ‘no restrictions’ means … well, no restrictions.

“That means no more mask requirements, no more tables being six feet apart, no barriers, no restrictions on capacity,” said Santaniello, director of Operations for the Federal Restaurant Group, which includes the Federal in Agawam, Vinted in West Hartford, and Posto in Longmeadow.

But just because it’s there in black and white doesn’t mean this restaurant group has to go as far and especially as fast (the date for full reopening was moved from Aug. 1 to May 29, as everyone knows by now) as the governor says it can.

And it won’t.

Indeed, Santaniello — several times, in fact — said it will be customers, the buying public, and not the governor who ultimately determines the pace at which these restaurants work their way back to where they were in the winter of 2020, before COVID-19 reached Western Mass.

“We’re not just going to turn on the faucet right away and have everything back to normal day one — the guests are going to decide things,” he noted. “What we’ll probably do is eliminate the barriers and slowly introduce more seating so the guests get comfortable. We’ll start to ramp up and ease our way back and see how things go.”

For example, while the requirement that tables be six feet apart has been lifted, the three restaurants in the group won’t immediately turn back the clock on such spacing, and will likely start with tables four feet apart and gradually reduce that number, again, with the pace of change and distance set by the public and its perceived comfort level with the surroundings.

“We’re not just going to turn on the faucet right away and have everything back to normal day one — the guests are going to decide things.”

Overall, as his group ramps up in the wake of the reopening announcement, Santaniello is projecting a solid balance to 2021, although projecting numbers is somewhat difficult. He noted, for example, that last summer was very strong for the three restaurants, all of which had outdoor dining, and one reason was because far fewer people were able to vacation out of the area. This summer, more might be able to, but most spots on the Cape and elsewhere are sold out.

“If spring is any indication, our reservations are up — they’re up to even 2019 levels,” he said, adding that the calls for reservations and booking events started picking up several weeks ago as the number of COVID cases started declining and the number of people vaccinated kept increasing.

Santaniello is projecting a strong fourth quarter, which is traditionally the most important three months for most restaurants, and especially the one he was sitting in while talking with BusinessWest, the Federal in Agawam, located in an historic home built just before the Civil War.

It has become a popular gathering spot year-round, he said, but business peaks during the holidays, and he is expecting a hard run on dates in December for holiday parties, especially after most companies, and families, went without last year.

But the next several months will feature a number of challenges, said Santaniello, noting rising food prices and especially the ongoing labor shortages as the two most pressing items on the list. The latter is the one keeping most restaurateurs up at night, he noted, adding quickly that he’s certainly in that group counting sheep.

“Last year, I had employees I was trying to keep on the payroll and no customers; this year, it feels like I have a ton of customers and no employees,” he said. “A good percentage of our employees have not come back yet, or some have left the industry; some are not ready to come to work for any of a number of reasons. Everyone has to do what’s right for them.”

He noted that the problem will actually limit the amount of business he can take on for the foreseeable future.

“Last year, I had employees I was trying to keep on the payroll and no customers; this year, it feels like I have a ton of customers and no employees.”

Indeed, while the Federal has historically been open six nights a week (Sundays are reserved for events), it will go down to five and possibly to four (Wednesday through Saturday, with events on Sunday), in large part due to the staffing situation.

Overall, though, the outlook for 2021 is obviously much better than 2020, he said, adding that he’s optimistic that the employment situation will eventually stabilize, probably by the fall, and overall business, by most projections, will continue to improve as customers feel more comfortable with being indoors and around other people.

“I think we’re going to have a great summer, and it’s going to be an even better fourth quarter,” Santaniello said. “The second quarter is shaping out great, the third quarter will be good, and the fourth quarter and the holiday season will be really, really good.”

 

—George O’Brien

Features Special Coverage

Relief, Joy … and Anxiety, Too

 

While it was not exactly unexpected news, in some quarters, at least, Gov. Charlie Baker’s recent announcement that he was accelerating the reopening of Massachusetts — shifting the date for removing most restrictions on businesses from Aug. 1 to May 29 and also removing most mask mandates — nonetheless sent shockwaves through the business community.

And for different reasons.

For tourism-related businesses, the announcement means they gain nine precious weeks during their peak time of the year to operate without the restrictions that have hamstrung them since March 2020. Everyone was looking longingly toward that time, but it comes sooner than most anticipated.

Indeed, for those businesses and many others, the announcement comes at a time when they’re struggling to find enough workers to handle the current pace of business, let alone the surge expected to come when the restrictions are lifted, adding another rather large dose of anxiety on that issue.

And, speaking of anxiety, for those businesses that were struggling with the challenge of when and how to fully reopen their offices and bring back employees who have been working remotely, the governor’s announcement brings more layers of intrigue to what were already-complicated decisions.

As for the lifting of the mask mandate — the governor and CDC have decided that vaccinated individuals no longer have to wear masks indoors or outdoors — it has created a whole new set of headaches for employers who already had enough to deal with, said Meredith Wise, president of the Employers Assoc. of the NorthEast, adding that faith in the honor system is not shared by many employers and employees alike.

Meredith Wise

“Things are very volatile in many respects. One of our members said, ‘we’ve gotten into a period where we’re intolerant of other people’s views and perspectives, and all this adds one more layer that can potentially cause a problem in the workplace.’”

“Things are very volatile in many respects,” she said, adding that differing opinions about whether vaccinated individuals should still wear masks in the workplace prompted a fistfight recently between two now-former employees of a company in Rhode Island, an EANE member. “One of our members said, ‘we’ve gotten into a period where we’re intolerant of other people’s views and perspectives, and all this adds one more layer that can potentially cause a problem in the workplace.’”

So it was certainly with a mix of emotions that the business community greeted the news that the state has finally reached the fourth stage of the reopening plan the governor announced almost exactly a year ago: what Baker calls the ‘new normal.’

There was definitely some joy and relief, especially in the beleaguered hospitality sector, said Rick Sullivan, president and CEO of the Western Massachusetts Economic Development Council, who predicted both a quick and profound impact on such businesses.

Rick Sullivan

Rick Sullivan

“All of our destination locations are going to see a pretty quick uptick in business; I think there’s a huge amount of pent-up demand in the travel and tourism industry for people to get away.”

“I know people are pretty excited about it,” he said, adding that he’s had discussions with many in the hospitality sector who were looking forward to the day when they could be at full capacity — and now it’s almost here. “All of our destination locations are going to see a pretty quick uptick in business; I think there’s a huge amount of pent-up demand in the travel and tourism industry for people to get away.

“I think people are really ready for some quality time,” he went on. “And that means travel and taking advantage of the venues we have here in Western Mass. for day trips.”

Nancy Creed, president of the Springfield Regional Chamber, agreed, noting that gaining those two all-important summer months will provide a much-needed lift for businesses in that sector.

“This is great for the hospitality sector — they really need those summer months,” she said, adding that the difference between May 29 and Aug. 1 for that sector is immense.

That said, the governor’s announcement is only the latest of many that have caught business owners and managers by surprise and left them somewhat flat-footed, with little time to adjust to changing conditions.

Nancy Creed

Nancy Creed

“Some people were a little shell-shocked with the announcement.”

“Some people were a little shell-shocked with the announcement,” said Creed, adding that this sentiment applies to everything from restaurants and tourist attractions ramping up for full capacity to business owners of all sizes now having to deal with questions on mask wearing, requiring vaccinations, bringing remote workers back to the office, and more.

Wise agreed. She said the announcement from the governor has left some wondering just what to do, especially when it comes to many of the precautions they’ve been taking for the past 14 months.

“There are definitely factions within management teams and organizations that are saying, ‘yay … let’s throw away all the masks and do away with all the social distancing and just get back to the way we used to operate,” said Wise, noting that EANE’s hotline has been flooded with calls on various aspects of the reopening plan and mask mandates. “But then there are concerns about whether people have been vaccinated or not. Do businesses put something out that says, ‘if you’re vaccinated, you don’t have to wear a mask?’ And if they do, will there then be peer pressure for people who haven’t been vaccinated to stop wearing a mask because they don’t want to stand out?”

 

Changing on the Fly — Again

Peter Rosskothen, owner of the Log Cabin Banquet & Meeting House, the Delaney House restaurant, and other hospitality-related businesses, has lived through a number of announcements from the governor and has become adept at changing on the fly. Still, this change is abrupt and huge in scale.

“This reversal is traumatic in some ways,” he said the day after the announcement came down. “Everything we’ve been doing for the last year and half is out the door in 10 days. Think of all the things we were doing … and now we’re just flipping a switch and going back to the old way, like with buffets. Now it’s suddenly OK to let people serve themselves? It just doesn’t seem right mentally.”

This change has him excited on some levels — he has a number of weddings booked for those two months, and now the bride and groom can invite more people to those ceremonies — but there is some apprehension as well, especially when it comes to the daunting task of staffing up for larger volumes of business.

“This reversal is traumatic in some ways. Everything we’ve been doing for the last year and half is out the door in 10 days.”

In no way is this remotely one of those proverbial good problems to have, he told BusinessWest, adding that businesses across the hospitality sector have been struggling mightily to not just hire people, but keep them for any length of time amid immense competition for good help.

“I’ve heard that there’s one restaurant that’s paying people $1,000 if they stay for three months,” he noted, adding that many others have resorted to sign-on bonuses and other types of incentives to get people in the door.

He hasn’t taken that step yet (he’s thinking about it), but he is increasing hourly wages, a step he believes will help but certainly not solve what has been a persistent problem made worse, in his opinion and that of many others, by generous unemployment benefits and an overall relaxing of rules requiring those out of work to look for employment. Meanwhile, he’s not sure how these soaring labor costs will impact his ability to do business.

“This labor shortage is going to radically increase our labor costs,” he explained. “We were ready for a minimum wage of $15, and we were planning on that in our pricing. But $15 is not good enough post-COVID.”

As for people who are employed, the governor’s decision to move up the timetable for fully reopening the state is, as noted, bringing fresh emphasis to a problem many employers were looking to deal with later, rather than sooner.

That problem is simply deciding who comes back, when, and under what circumstances. Wise told BusinessWest several weeks ago that many employers were struggling with this issue because employees had grown accustomed to working from home and many of them would prefer to keep on doing so, even as their managers would prefer they return.

Compromises in the form of hybrid schedules are one solution, said Wise, adding that the new timetable for fully reopening the state is creating a new sense of urgency among some employers, whether they like it or not.

“Organizations probably thought they had a few more months before they had to actually roll out any new policies and procedures regarding how and when they’re going to bring people back and whether they’re going to require them to come back full-time or work a hybrid schedule,” she told BusinessWest. “Now, with everything being lifted as of May 29, do they rush this, do they put it on steroids and get it going a lot faster, or do they still take their time and be more thoughtful and more planned?”

Knowing that business owners are uncertain about how to handle this situation, EANE is preparing to survey its members on this matter, said Wise, adding that the results will be eagerly awaited by those pressed to make decisions.

“Everyone wants to know what everyone else is doing,” she told BusinessWest. “They want to know how to compare and benchmark against everyone else.”

What happens in offices in Springfield, Northampton, and other communities will certainly play a role in how quickly and profoundly some businesses bounce back, said Sullivan, adding that he expects that aspect of the economy to emerge much more slowly than the tourism sector.

“The bounceback to the office work as it was before the pandemic is going to be slower than the travel and tourism industry because everyone is going to be careful and methodical when it comes to opening back up,” he explained, adding that it might be fall or a little sooner before most offices are back to something approaching pre-pandemic conditions. “There will still be a significant amount of mask wearing and social distancing, especially in a larger office setting, even with the relaxed CDC guidelines.”

 

 

Back to Normal?

In many respects, the governor’s announcement amounts to more pivoting, said Creed, adding that, by now, most businesses have gotten pretty good at it — a trend she expects to continue into the governor’s ‘new normal’ stage of reopening the state.

“If there’s one thing we’ve learned through all of this, it’s that we can absolutely can pivot, and we’re incredibly resilient and can adjust,” she said. “So now, we just have to adjust to slowly getting back to normal.”

Meanwhile, for Rosskothen, the acceleration of the state’s reopening plan means something else — getting back to doing business as he did before the pandemic.

“The exciting thing about this is that we’re going to be real managers again,” he told BusinessWest. “Instead of thinking about how we can get free money from the government, I’m 100% switching to becoming a manager — how do we manage this labor shortage? How do we motivate staff? How do we get staff ready so we can manage this influx of business that’s right around the corner?

“It’s real management again,” he went on. “No complaining about COVID or restrictions … it’s about work, and that’s a good thing.”

That’s just one of many good things to come from an announcement that brought a large helping of joy and relief, but with some anxiety on the side.

 

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

Community Spotlight

Community Spotlight

By Mark Morris

Mayor John Vieau says better control of COVID and the ongoing economic reopening have Chicopee officials excited about progress in the city.

Mayor John Vieau says better control of COVID and the ongoing economic reopening have Chicopee officials excited about progress in the city.

After a year when everyone got used to pivoting — and got sick of that word — Chicopee Mayor John Vieau is happy to be pivoting in a different direction.

Specifically, he made some adjustments to a standing meeting with his staff — but this time for a more positive reason. Since the earliest days of the pandemic, Vieau met three times a week with a COVID-19 task force made up of city department heads. He’s still meeting with the group, but their focus has now shifted from COVID to reopening Chicopee. Among the agenda items are reinstalling basketball hoops and opening essential city buildings.

“For the last year, anyone needing services at City Hall, the library, or the Council on Aging had to make an appointment, so we’re excited about welcoming the public again,” he said.

Vieau pointed with pride to municipal employees for all their efforts during the pandemic, noting that the city made it through the last 14 months without having to furlough or lay off even one employee. “The response from everyone in Chicopee has been exceptional. Because we’ve all pulled together, there is a very bright light at the end of the tunnel.”

Moving forward, proper training and advancement of city employees is a priority for the mayor. Noting that both the fire and police chiefs worked their way into the top jobs in their respective departments, Vieau wants the same opportunities for those who follow. “I want to make sure there is always a success ladder available for employees and the right training is available for them.”

Like every community, local businesses in Chicopee were hit hard by the pandemic. That’s why the city contracted with the Greater Chicopee Chamber of Commerce to offer free grant application assistance to any Chicopee business.

“The response from everyone in Chicopee has been exceptional. Because we’ve all pulled together, there is a very bright light at the end of the tunnel.”

Julie Copoulos, executive director of the chamber, noted that, because her organization has such a large network, it’s able to get information out quickly and to find out what a small business might need.

“Many business owners just needed someone who could say, ‘hey, I think this grant application fits you and would be a good one to apply for,’” Copoulos said. “These programs can save a person’s business, but the application can be complex, so it really helps to have a person who has been through the process, to sit with you and get it done.”

 

Positive Shifts

Two Chicopee chamber members did not see a slowdown during the pandemic, but instead ramped up their efforts. Universal Plastics shifted its production to make COVID testing machines and face shields, while Callaway Golf manufactured the company’s top-end Chrome Soft golf ball in a year when the golf business jumped 8%.

“Universal Plastics is an excellent example of what great companies do,” Vieau said. “During a time of uncertainty, they modified their production to meet current demands.”

Copoulos credits Chicopee businesses for being resilient and adaptable during a challenging year. “It was amazing to see these folks turn on a dime and change their business model,” she said. “Now they are in the process of changing it back.”

A new Chicopee Center project conducted in partnership with MassDevelopment is designed to bring more business to downtown and support the businesses already there, the mayor noted. “I’m excited about the future of downtown. It will be a thriving area with a small-town feel, and it will be one of the coolest downtowns you’ll see.”

Chicopee officials recently selected a developer for the last parcel of the former Facemate property. Plans for the site include a 54,000-square-foot, multi-sport facility; a 102-unit residential building; and renovation of the Baskin building into a 10,000-square-foot restaurant and brewery, where Loophole Brewing is expected to locate.

An artist’s rendering of the proposed Facemate site

An artist’s rendering of the proposed Facemate site, showing the athletic-field complex and the renovated Baskin building.

The Food Bank of Western Massachusetts recently purchased 16.5 acres in the Chicopee River Industrial Park and plans to move all its operations from its longtime location in Hadley. The Food Bank is making the move to expand its warehouse space and locate closer to major highways. “We’re going to be right at the center of the effort to solve food insecurity,” Vieau said.

In addition to businesses reopening, new ones are locating in Chicopee. On the day BusinessWest spoke with the mayor, he had just attended a ribbon cutting for La Diaspora, a new art consignment store. Vieau also noted that the pandemic did not slow down construction of a new Florence Bank branch that recently opened on Memorial Drive.

Like communities everywhere, home sales in Chicopee are booming. Copoulos said Chicopee has an advantage over neighboring communities by offering some of the lowest residential real-estate prices in the Pioneer Valley.

“Chicopee has huge opportunity right now because young families are getting priced out of towns like Easthampton and Northampton,” she said. “Chicopee is accessible for first-time homebuyers, and I look forward to young families locating here.”

 

Back to School

Vieau also looks forward to Chicopee students returning to their schools.

“Nearly all our classrooms are air-conditioned,” he noted, “and we’ve enhanced the air quality in all the school buildings as well.”

Both Vieau and Copoulos spoke of a general feeling of optimism now that COVID-19 is more under control and the economy is opening back up statewide. Both were excited to talk about the Center Fresh Farmers Market starting in June. Hosted by the chamber, Center Fresh represents a chance for people to get together again.

“I’m excited that we will be able to see people on the street again, face to face,” Copoulos said.

Added Vieau, “efforts like this help reignite downtown. We’ve been on pause far too long.”

While he admits the pandemic was a true test for Chicopee, the mayor pointed out that the city is finishing strong. In addition to hosting a regional vaccination site at the Castle of Knights, the city has partnered with Holyoke Health Center and its mobile vaccine clinic. Overall, he believes Chicopee’s success in weathering the coronavirus is due to efforts by people all over the city.

“It has been a team effort with different people stepping up to help,” Vieau said, citing examples like library staff who made comfort calls to check in on people and help them sign up for vaccines, and the Council on Aging providing up to 300 to-go lunches five days a week. “People all over Chicopee were willing to redefine their roles and their jobs because they wanted to do the right thing.”

Features Special Coverage

Generating Results

Holyoke G&E Manager Jim Lavelle

Holyoke G&E Manager Jim Lavelle at the hydroelectric facility at the Hadley Falls Dam.

Holyoke Gas & Electric was recently recognized among a handful of utilities nationwide for its leadership in transforming to a carbon-free energy system. That designation, from the Smart Electric Power Alliance, underscores a green-energy mindset at the municipal utility that is not only earth-friendly, but a powerful force when it comes to economic development in the Paper City.

Jim Lavelle acknowledged that Holyoke Gas & Electric (HG&E) has some decided advantages when it comes to clean energy and reducing its carbon footprint.

Take, for example, the hydroelectric facility at the Hadley Falls Dam on the Connecticut River, capable of generating 33 megawatts of electricity, as well as some smaller hydro units located throughout the Holyoke canal system that produce another 15 megawatts — clean-power generation that is beyond the means of many utilities, especially municipal operations.

“We’re extremely fortunate that we have this infrastructure at our disposal — 50 megawatts of hydro in our backyard,” said Lavelle, general manager of HG&E. “It’s a tremendous asset that we try to take full advantage of.”

But HG&E’s commitment to a carbon-free energy system goes well beyond the hydroelectric facility. Indeed, it also includes early adoption of utility-grade solar power (20 megawatts in all), punctuated by the Mount Tom Solar & Energy Storage System. That facility, built near the site of a former fossil-fuel plant, is a large, utility-scale battery and the second such system to be installed in the state, drawing power directly from the solar farm, the largest community solar project in the Commonwealth.

“We’re extremely fortunate that we have this infrastructure at our disposal — 50 megawatts of hydro in our backyard. It’s a tremendous asset that we try to take full advantage of.”

That commitment also includes a diverse power-supply portfolio that includes hydro, solar, nuclear, and wind, as well as efficiency and conservation programs and development of emerging clean-energy technologies, all of which have the utility well-positioned to meet the state’s net-zero target by 2050 (established in the recent clean-energy bill), as well as incremental benchmarks for 2030 (50% below 1990’s emissions levels) and 2040 (75% below).

But long before these mandates and net-zero targets were put in place, HG&E was taking full advantage of its assets, especially those in the clean-energy category, and promoting what it called “cost-competitive clean energy.”

The Massachusetts Green High Performance Computing Center

The Massachusetts Green High Performance Computing Center is located in Holyoke, in large part, because of the low-cost, green energy available there.

This track record, coupled with many recent initiatives, has earned HG&E recognition among a handful of utilities nationwide for its leadership in transforming to a carbon-free energy system by the Smart Electric Power Alliance (SEPA) and a spot on the 2021 Utility Transformation Leaderboard. There, it joins just nine other utilities, all of them much larger, including Southern California Edison, Green Mountain Power in Vermont, and Consolidated Edison of New York.

While Lavelle is clearly proud of the award, what it means, and what it says about his utility, he is focused as much on what it — and all of the utility’s efforts toward clean, modern energy — mean for Holyoke. Indeed, the municipal utility and its lower-cost energy have always been selling points and economic-development engines, he said, but they become even more so as the energy becomes cleaner and greener.

“We have a ‘green team’ here that does a lot of our advanced planning on carbon-footprint management, but we also have everyone involved in some way, shape, or form in this effort. Our team is really engaged, and it’s good to see how passionate people are about working toward this objective and how creative they are.”

This was in evidence with the Massachusetts Green High Performance Computing Center, which is based in Holyoke, in large part, because of the availability of vast amounts of clean, lower-cost energy, said Lavelle, adding that these factors also played sizable roles in bringing two huge cannabis-production facilities to the city, with more on the way. And as companies of all kinds look to reduce their carbon footprints, embrace clean energy, and perhaps escape the high lease rates of major urban areas, HG&E and its drive to a carbon-free energy system could bring more businesses to the Paper City.

But while the utility has made great progress in the broad realm of clean energy, it acknowledges there will be stern challenges as it continues down this road.

“With this climate bill … if everyone’s going to convert their gas and oil and propane — their inefficient systems — to cleaner electric systems, that’s going to put a huge demand on our electric capacity,” Lavelle said. “So what we’re forecasting is that we could potentially see a tripling of our electric kilowatt-hour sales by 2050, depending on how we navigate from here to there.

“And even today, we’re seeing that, in certain neighborhoods, all it takes is one resident to put in an electric vehicle, and it taxes the transformer that’s serving that neighborhood,” he went on, adding that upgrading these transformers, built for a different time, will be just one of the many tests awaiting a utility that is committed to being ready for whatever the future brings. And that’s another reason why it’s one of just 10 utilities on SEPA’s short list.

The Mount Tom Solar facility

The Mount Tom Solar facility is the largest community solar project in the Commonwealth.

For this issue, BusinessWest takes an in-depth look at Holyoke G&E’s ongoing efforts — and true leadership — with regard to clean-energy transformation, what it means for a city looking to make history of a different kind, and what the road to hitting the state’s benchmarks might look like.

 

Scaling Up

As he gave BusinessWest a tour of the Hadley Falls Dam facility, which has been powering businesses for more than 150 years, Lavelle talked at length about what else goes on there.

Indeed, this is the site of the Robert E. Barrett Fishway, and the fishlift there helps migrating fish over the dam. In a normal spring, the facility would be visited by dozens of school classes on field trips — and other visitors — who can watch American shad, sea lamprey, sturgeon, and (hopefully) a few Atlantic salmon make their way through the lift and over the dam to resume their journey north. This is not a normal spring, however, and the fishway is closed due to COVID-19.

The work of ferrying fish over the dam continues, however, as does the work of producing electricity at the twin turbines, production that, as noted, is just one of the reasons HG&E finds itself among those utilities identified by SEPA as taking the lead in transforming to a carbon-free energy system.

As it went about completing its report on the state of clean-energy transformation and identifying utilities now on its leaderboard, SEPA listed what it calls the “four dimensions of utility transformation” — clean-energy resources, corporate leadership, modern grid enablement, and allied actions and engagement.

As he talked about his utilities efforts, Lavelle touched on all these elements, starting with those clean-energy resources.

HG&E now has many of them, he said, listing the dam, the Mount Tom Solar and Energy Storage System, and others, which, together, create a diverse, increasingly clean power-supply portfolio.

Beyond this portfolio is a mindset to embrace clean energy, efficiency, conservation, and planning for tomorrow, a mindset that has existed for many years now, long before the state started setting net-zero goals.

“We have a ‘green team’ here that does a lot of our advanced planning on carbon-footprint management, but we also have everyone involved in some way, shape, or form in this effort,” Lavelle noted. “Our team is really engaged, and it’s good to see how passionate people are about working toward this objective and how creative they are.”

The latest example of this passion and creativity is the Mount Tom Energy Storage System. Operated by ENGIE Storage (formerly Green Charge Networks), it is designed to keep electric rates stable by reducing rising demand-based charges for HG&E and its customers by storing energy needed to reduce peak loads — in a clean, environmentally friendly manner.

“Two of the highest-cost elements in our energy ledger are capacity and transmission costs,” said Jonathon Zwirko, HG&E’s project engineer and Energy Resources coordinator. “By timing things properly and discharging the batteries at the right time, we’re able to save on both capacity and transmission costs.”

Through the use of this battery system, which can store 6 megawatt hours of energy at a rate of up to 3 megawatts per hour, the utility can save 2% to 2.5% on its total energy costs annually, a number that will go higher when a second, larger battery facility, this one on Water Street, goes online later this month.

Jim Lavelle at HG&E’s energy-storage system

Jim Lavelle at HG&E’s energy-storage system, the second such system to be installed in the state.

The solar facility and energy-storage facility are just a few components of a diverse clean-power portfolio that, as noted, also includes hydro, wind, and nuclear, a portfolio that gives the utility flexibility and the ability to offer competitive rates, Lavelle said.

As noted, this powerful combination has helped bring some businesses to Holyoke that might not otherwise have considered that zip code.

That’s especially true of the cannabis businesses, including large manufacturers, that have, well, put down roots in the city. They’ve been drawn by the hundreds of thousands of square feet of available mill space, said Zwirko, but even more important to them is the large amounts of green, comparatively cheap electricity needed for all elements of the operations, but especially the lights that enable plants to grow.

Green Thumb Industries is currently operating a plant on Appleton Street that consumes roughly 1.5 megawatts of electricity, said Zwirko, noting that Trulieve, which recently moved into the old Conklin Furniture complex just a few hundred yards from the Hadley Falls Dam, will, when operating at peak capacity, consume 4 megawatts. By contrast, Holyoke Medical Center and Holyoke Community College each consume roughly a half-megawatt.

“If we see a tripling of our load, and that power has to come from carbon-free sources, that will be a real challenge. Different camps think offshore wind will fill in a lot of the gaps, but if we’re going to see a tripling of load, every other utility is going to see a tripling of load, so there will be a huge demand.”

So these are huge users of electricity, he went on, adding quickly that HG&E can handle several more of these facilities.

“There are about 10 others that have received licenses and are in the process of construction,” he said, “and we probably have another handful that are knocking on our door, with that 5-megawatt request — each — which we’re prepared to handle.”

Lavelle agreed.

“Part of our strategy with our local grid has been anticipating this growth,” he told BusinessWest, adding that, starting with the computing center, which consumes roughly 4 megawatts, the city has anticipated that it’s blend of clean, inexpensive power would attract more large-scale users. “We weren’t anticipating the cannabis industry at that time, but were targeting and anticipating data-related loads.

The hydroelectric faciliity at the Hadley Falls Dam

The hydroelectric faciliity at the Hadley Falls Dam is just one of HG&E’s many assets when it comes to green energy.

“We’d like to see more people, more jobs, tied to these developments, and while we haven’t seen that on the data side, we’re seeing it on the cannabis side,” he went on, adding that, with improvements made to the system, the city and its utility can accommodate another 15 or 20 megawatts worth of cannabis-related businesses.

 

Watt’s Happening?

While the utility is well-positioned to handle the needs of the present — and the addition of several more cannabis-related businesses — the future, as noted, is dotted with question marks, especially when it comes to what’s becoming known as ‘electrification’ — of cars and many other things

“If we see a tripling of our load, and that power has to come from carbon-free sources, that will be a real challenge,” Lavelle said. “Different camps think offshore wind will fill in a lot of the gaps, but if we’re going to see a tripling of our load, every other utility is going to see a tripling of load, so there will be a huge demand.”

In the face of these seemingly inevitable surges in demand, utilities, including HG&E, will have to put an even greater emphasis on energy efficiency, conservation, and education to stem the tide, he went on.

“We’re going to have to do those things so we don’t see a tripling of load,” he said. “Can we mitigate, or offset, that growth through energy efficiency and energy conservation and educate people on how to use less energy? We’ll have to. We’ll need to educate people about how to charge their electric vehicles at the right time — at night, right now — at off-peak times.”

Elaborating, he said there will likely be more of what he called “behavioral incentives” that are already being used to change attitudes about clean energy and reduce surges in demand.

Summing up HG&E’s efforts toward transforming its energy system, Lavelle channeled Kermit the Frog by implying strongly that it’s not easy being green. In fact, it’s quite challenging.

But it’s necessary, and for many reasons. The state is demanding it, and, increasingly, customers, both residential and commercial, are demanding it as well.

Well before these demands became loud in nature, HG&E was committed to exploring and implementing strategies to make its power portfolio cleaner and more earth-friendly, knowing they would pay off, not with awards and accolades (although those have come, too) but in cost reductions and opportunities for the city to grow and attract new businesses.

These investments are certainly starting to pay off, and as they do so, HG&E is making a powerful statement, literally and figuratively.

 

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

Community Spotlight

Community Spotlight

By Mark Morris

 

As COVID-19 has encouraged many Americans to move out of large urban areas, a good number of them are moving to Pittsfield.

In April, the New York Times reported on a U.S. Postal Service survey that tracked the top metro areas where people moved during the pandemic. Pittsfield ranked sixth on the list.

According to Jonathan Butler, Pittsfield’s proximity to both New York City and Boston certainly put the city in a good spot to benefit from the migration away from larger metro areas.

“Our location positioned us well for people who have decided to move to a more rural setting and take advantage of telecommuting after their experiences during the pandemic,” said Butler, who is president and CEO of 1Berkshire, the economic-development and tourism organization for Berkshire County.

A USA Today article in March suggested that, as more people work from home, big cities may lose population to smaller areas that cost less and offer better quality of life. Using data from Moody’s Analytics, the article included Pittsfield among the top five cities that could stand to gain from the shift to remote work. Moody’s ranked Pittsfield in the 53rd percentile for affordability, and for quality of life it scored 90.2.

Mayor Linda Tyer

Mayor Linda Tyer says the city’s COVID-19 task force, which met daily at first, still gathers each week.

More than a statistical exercise, Butler said these trends are reflected in reality.

“There has been a 40% increase in net real-estate sales compared to last year,” he said, noting that the increase represents more properties selling, and selling at higher prices. “We’ve seen real-estate prices skyrocket in the Berkshires, anywhere from 10% to 30%.”

Still, while the pandemic may present many opportunities for Pittsfield, the city certainly faced difficult challenges when COVID first hit.

In her recent state-of-the-city address, Mayor Linda Tyer said Pittsfield entered 2020 with a robust agenda of ways to enhance the city when, suddenly, all priorities shifted to managing a pandemic.

Tyer led a COVID-19 task force in Pittsfield that brought together medical, police, fire, and education professionals who meet daily at the beginning of the crisis. They still meet weekly to review public-health data and plans of action. As a result, Tyer said Pittsfield now has a solid response infrastructure in place, as well as vaccinators and volunteers ready to deploy.

“State officials have recognized our task force as an example of best practices, and it serves as a model that could be replicated in other communities,” she noted.

Another key move early on was establishing the COVID-19 Economic Relief and Recovery Program, a comprehensive economic package to support small businesses, nonprofits, and residents. By the end of 2020, Pittsfield had awarded 90 grants to local small businesses and restaurants totaling nearly $700 thousand.

In addition, “we were able to provide easy access to food and supply Chromebooks to students after the schools were closed,” the mayor said. “We also created 13 ‘grab-and-go’ zones to support our restaurants with takeout and delivery services. These are just a few examples of the many ways we came together to support each other.”

 

Down to Business

Tyer pointed to a new, innovative company that opened in Pittsfield in 2020 despite the pandemic. United Aircraft Technologies is a veteran-owned, minority-owned, female-led business that created a new type of sensing clamp for aircraft wiring. The clamps are 65% lighter than what is currently in use, and they do not need other hardware, such as screws or bolts. Two local companies will handle production of the clamps.

“Our location positioned us well for people who have decided to move to a more rural setting and take advantage of telecommuting.”

“United Aircraft Technologies has teamed up with Sinicon Plastics to produce the clamps, and SABIC will provide the materials to make them,” she said.

For many years, officials in Pittsfield have emphasized job creation, with success stories ranging from advanced manufacturing to e-commerce. Since the pandemic, Butler said, they have a new priority. “Our emphasis is no longer on creating jobs, it’s now about filling jobs and recruiting talent to the region.”

Among its infrastructure projects, Tyer talked about several revitalization efforts happening on Tyler Street. By the end of this year, she predicts 36 new market-rate apartments and “promising new interest” in saving the historic fire station from demolition.

“There has been a 40% increase in net real-estate sales compared to last year. We’ve seen real-estate prices skyrocket in the Berkshires, anywhere from 10% to 30%.”

She also discussed a $3 million MassWorks grant for the Tyler Street streetscape project that will begin this year. “The improvements include a roundabout, upgrades to sidewalks and crosswalks, and other amenities along the corridor.”

“There has been a 40% increase in net real-estate sales compared to last year. We’ve seen real-estate prices skyrocket in the Berkshires, anywhere from 10% to 30%.”

This spring also marks the start of construction of the Ashuwillticook Rail Trail extension through Pittsfield. The bike trail will connect Adams and Pittsfield, with a plan to eventually connect the trail throughout Berkshire County.

For Butler, the trail extension is a real positive, as one of the region’s bright spots from last year was an increase in people coming to the area for outdoor activities. Whether it’s state parks or cultural attractions such as the Norman Rockwell Museum and Hancock Shaker Village, visitors were able to explore these sites while staying outside much of the time.

The past year has also brought many new hikers to the region, he added. “From Mount Greylock to October Mountain State Forest, our hiking trails have been bustling with more activity than they’ve ever had.”

Pittsfield at a glance

Year Incorporated: 1761
Population: 44,737
Area: 42.5 square miles
County: Berkshire
Residential Tax Rate: $19.25
Commercial Tax Rate: $39.99
Median Household Income: $35,655
Median family Income: $46,228
Type of Government: Mayor, City Council
Largest Employers: Berkshire Health Systems; General Dynamics; Petricca Industries Inc.; SABIC Innovative Plastics; Berkshire Bank
* Latest information available

While the additional outdoor activity couldn’t replace all the lost business in 2020, he admitted, it certainly helped, and makes him feel optimistic going forward. “We have introduced a lot of new people to the Berkshires who have not come out here previously, so that’s a positive takeaway.”

With its location in the middle of the region, Butler said Pittsfield is in a good position to benefit from the increased visitor traffic anticipated for this summer and beyond. Like every city, Pittsfield saw restaurants and retail shops struggle financially during the pandemic, with some not surviving. But as people’s comfort levels about going out increases, he believes that will generate new activity.

“The demand for those businesses is still going to be there, and it will create opportunities for new entrepreneurs to step into those closed businesses and try their own model,” he said. “It won’t happen overnight; we’re looking at it as a one- to two-year cycle.”

 

Gaining Momentum

While many Americans are expected to book flights for vacations this year, more are planning to travel by car — and shifts in air travel have tended to help the tourist economy in the Berkshires, Butler noted.

“We always benefit when people decide to book a three- or four-night getaway to the Berkshires instead of flying south or out west,” he said. “We expect there will be more of that than usual this summer.”

As more people visit the area, and even move there, it creates new opportunities and new challenges for Pittsfield. Tyer believes her city will rebound from the pandemic thanks to the resolve of its residents and business owners.

“As we emerge from this public-health crisis,” she said, “we will be stronger than ever before and ready for good things to happen.”

Community Spotlight

Community Spotlight

 

Nadim's

Nadim Kashouh says the return of office workers will be critical to the success of businesses downtown.

The wording in the initial guidance that has come down on the $2 trillion American Rescue Plan, and, more specifically, the $130.2 billion designated for city and county fiscal relief, is somewhat vague and leaves a lot to the imagination.

“Funds can be used to respond to the COVID-19 public-health emergency and its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries, such as tourism, travel, and hospitality,” it reads, before going on to note that such funds may also be used for everything from investments in water, sewer, and broadband infrastructure to “providing government services in a way that covers the revenue gaps created by the COVID-19 emergency.”

As he reads this guidance, Tim Sheehan, Springfield’s chief Economic Development officer, draws immediate parallels to the federal money Springfield received nearly a decade ago in the wake of the June 1, 2011 tornado that tore through several parts of the city. Even the dollar amounts — roughly $100 million, in each case — are strikingly similar.

“Some of the outcomes resulting from the funding that came from the tornado assistance were transformative for Springfield,” he noted, adding that a reconstruction fund of $96.7 million was put to a number of uses, including business assistance, housing replacement and reconstruction, infrastructure, and more. “And we’re looking to similarly deploy, very strategically, the resources we have from the rescue plan so that we have a similar result.”

How, and how effectively, Springfield can put its American Rescue Plan funds to work will likely play an important role when it comes to how quickly and profoundly the city can recover from a very different kind of disaster. And, like many area communities, Springfield has been hard hit by the pandemic, with many question marks looming over the future.

A city that was in the midst of what many were calling a renaissance in the years leading up to COVID saw much of its momentum halted or certainly slowed by the pandemic. A central business district that was thriving and teeming with events, activity, and new businesses has been eerily quiet, with many constituencies — from office workers to hockey fans; beer garden attendees to concertgoers — absent or in far smaller numbers.

As for those office workers, there are now lingering questions about when they will return (the vast majority haven’t yet) and how many of them will return, casting the future of the office towers that dominate the skyline into doubt.

But there are some signs of life and abundant optimism for the balance of this year and beyond.

Indeed, as he talked with BusinessWest on a quiet late Tuesday afternoon, Nadim Kashouh was looking forward to the upcoming weekend — moreso than any time probably since last Father’s Day, when he struggled mightily to keep up with a flood of takeout orders.

Gymnastics — in the form of youth competitions featuring teams from across New England — were returning to the MassMutual Center for the first time in more than a year. And Kashouh’s eatery, Nadim’s Downtown Mediterranean Grill, located just a block from the convention center, always does well when the gymnasts come to town.

“If they turn right when they leave the building, they find us — and a lot of them do turn right,” said Kashouh, noting that not many people have been coming to town, as in downtown, since COVID changed the landscape in March 2020. “It’s exciting to have the gymnastics back.”

And there are other signs of life as well. The AHL’s Springfield Thunderbirds are not playing hockey — they are one of three teams in the league to essentially opt out of play in a abbreviated 2021 season — but they are gearing up for the 2021-22 slate, and management is optimistic there will be considerable pent-up demand for their product (see related story HERE).

“Some of the outcomes resulting from the funding that came from the tornado assistance were transformative for Springfield. And we’re looking to similarly deploy, very strategically, the resources we have from the rescue plan so that we have a similar result.”

Meanwhile, in Pynchon Plaza, various works by the sculptor Don Gummer are now on display, yet another sign that the Quadrangle, one of the city’s tourism mainstays, is moving ever closer to something approaching normal (see related story HERE).

While COVID has certainly slowed the pace of progress in Springfield, it has also provided an opportunity to step back, look at some of the key development challenges and opportunities in the city, and work to be ready for the proverbial ‘other side’ of the pandemic. That’s been the case with two key areas downtown — the area around MGM Springfield, which is underperforming in many ways, and the so-called ‘blast zone,’ the area surrounding the site of the natural-gas explosion in November 2012 (more on these later).

“Our thought process throughout this has been to take the mindset, ‘once we’re through it, we want to be ready to go,’” Sheehan said. “And some of the funding that is coming will be able to help those initiatives be realized.”

For this latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at the City of Homes and its prospects for not merely turning back the clock to the vibrancy it enjoyed pre-COVID, but taking further steps forward.

 

Food for Thought

As the owner of one of the more prominent and visible restaurants downtown, Kashouh has long been a popular voice with the local media when it comes to commentary about business downtown and the impact of everything from the casino to the Thunderbirds; from concerts at Symphony Hall and the MassMutual Center to, yes, those gymnastics competitions.

As he did son again with BusinessWest, he first flashed back to the view in very early 2020, a time when, as he put it, “the pieces had fallen into place and everything was clicking.”

Over the past 13 months, of course, most of the pieces have fallen out of place, he said, adding that most of the key ingredients for success at his establishment — the shows on weekend nights; the hockey games, conventions, and other events at the MassMutual Center; and, especially, the downtown office workers — have been mostly missing in action as a direct result of the pandemic.

He said they’re all important, but perhaps the most critical is the office traffic, which consistently filled the restaurant at lunch and often the bar area after 5 o’clock. These days, the office crowd is a fraction of what it was, and the impact is profound.

“We saw a few of the old faces back in here today, and it was exciting — you’re seeing some of the regular faces back,” he said, referring to some commercial lenders once based downtown. “But we used to see them three or four times a week and sometimes twice a day; now, you see them once, and you hope to see them again next week — maybe.

“It’s going to be a while before things go back to where they were before,” he went on. “I was hoping that by summer things would be back to normal, but now it doesn’t look like it.”

Given this obvious trickle-down effect, the question of when, and to what extent, the office workers return to downtown looms large over the city and those in the Economic Development office.

Indeed, Sheehan, citing a story he read recently involving Citibank and its announced intention to downsize its office footprint in New York by roughly 40%, said it is becoming obvious that the pandemic will change the way businesses approach their real-estate needs moving forward, leading to endless speculation about the office market and the businesses that rely on it.

The former Willys-Overland building is now accepting lease applications

The former Willys-Overland building is now accepting lease applications, one of the first signs of redevelopment in Springfield’s so-called ‘blast zone.’

As for the present tense, the situation has improved — but only marginally.

“People are starting to come back to downtown to work, but it’s not fully engaged, and I don’t think it’s going to be until sometime late fall,” Sheehan said. “And I don’t think we’re really going to get back to 100% until the turn of the calendar to 2022. And that obviously has a ripple effect on all the businesses that depend on that population coming in every day, so that’s an ongoing concern for the city.”

This brings him back to that language in the guidance concerning the American Rescue Plan, which, he said, could and likely will extend to efforts to help keep existing businesses downtown and bring new ones there.

“Our objective, in terms of deployment of resources, is to keep as many leases in place and tenants in place as possible, and maintain, to the level that we can, the value of those leases,” he explained, “so that we don’t ultimately experience a huge negative devaluation in the commercial real-estate market.”

The process, already underway, starts with understanding the needs on both sides of the equation, meaning landlord and tenant, he went on, adding that some business sectors are doing better than others, with service and hospitality (those businesses relying on direct interaction with the public) faring the worst.

Overall, the city could access as much as $127 million in Rescue Act funds, depending on how the ‘county’ portion of the award is allocated, said Sheehan, adding that city officials are having discussions with the those at the Treasury Department about how they can be deployed.

Speaking in general terms, which is all he can really do at this point, he said the broad goal of this latest round of funding will be to provide a “softer landing” to the wild, turbulent ride COVID has given the city, which differentiates this round from the funding provided in the CARES Act in 2020.

“With the CARES Act funding, we were in the throes of the virus and the public-health orders associated with it,” he explained. “That funding was basically to alleviate the distress. With this round, it’s about how we’re going to rebuild after the virus and bring the economy back to … not necessarily what we had before, but, hopefully, even better.

“The CARES Act was wound triage,” he went on. “The funding that we’re dealing with in terms of the rescue plan is more post-operative care — that’s the analogy you would use.”

 

Forward Thinking

While the city has been mostly living within the moment during the pandemic and dealing with the day to day, planning for the future has gone on, again, with an eye toward enabling the city to emerge from the pandemic with an opportunity to seize whatever opportunities present themselves.

In recent months, there has been increasing speculation, as businesses realize they may not need to be in urban centers like New York and Boston with their (previously) sky-high lease rates, and individuals realize they don’t need to live in those cities to work for companies based in them, that there are opportunities for communities like Springfield.

Sheehan acknowledged the possibilities and, like others in recent months, said the city needs to market itself and otherwise position itself as a viable, lower-cost option to Boston.

Meanwhile, as noted, planning officials have used the COVID period to closely examine two potential-laden but challenged areas of the city, one identified as the ‘Northeast Downtown District,” a.k.a. the blast zone, and the area in and around the convention center and MGM Springfield.

The latter is the focal point of a master development plan created by Chicago Consultants Studio Inc. (CCS) and approved by the City Council in March. In it, the authors write, “MGM delivered a Casino District; the city must now drive the surrounding area development.” In the report, the consultants note what has become obvious: that, despite the city’s and MGM’s significant investment in time, design, money, and commitments to “integrate the casino into the urban fabric, the MGM complex has yet to foster important catalytic economic development and vibrancy outside the confines of the casino district.”

This unexpectedly stymied market, which prompted an urgent revisiting of the so-called Implementation Blueprint drafted for that area in 2018 as the casino was preparing to open, has resulted from a number of factors, they note, including:

• MGM’s decision to “overpay” for key properties critical to the project (an average of 240% over market) has driven an artificial increase in area property valuations, which has yet to correct itself;

• Resulting area rents do not reflect realistic market rates, which has turned away high-quality tenants interested in being adjacent to a casino anchor;

• News of MGM and potential future expansion created area-wide speculation, market inactivity, and a ‘wait-and-see’ attitude in anticipation of a buyout, which is clearly not in MGM’s plans; and

• Resulting property disinvestment, code violations, foreclosures, auctions, and growing blight in prime areas adjacent to the casino were all exacerbated on some levels by the pandemic.

Recognizing the pressing need and urgency for reinvestment in the immediate areas around MGM and the MassMutual Center, the city has narrowed the near-term focus of the Implementation Blueprint to a phase-one district generally bound by I-91/East Columbus Avenue, Harrison Street, Chestnut Street, and Union Street. Within that area, CCS has identified a number of properties that are in transition, vacant, or underutilized, including the Masonic Building, Colonial Block, Old First Church, 101 State St., 13-31 Elm St. (currently being renovated into housing and other uses), and the Civic Center Parking Garage.

The property across Main Street from MGM Springfield

The property across Main Street from MGM Springfield remains underutilized and largely vacant, despite expectations the casino would prompt greater vibrancy.

For this phase-one district, the city, through CCS, has advanced a three-part master development strategy that includes a Main Street and Convention Center Zoning Overlay District and other measures designed to stimulate and facilitate investment in that area, said Sheehan, adding that, while opportunities exist, COVID may in some ways be limiting what’s possible.

“We have to very flexible in terms of looking at what can be done with those properties,” he told BusinessWest. “My concern is that most of the foreclosed portfolio has office space above the ground-floor retail, for lack of a better word. Given the existing office market, I think we have to be very flexible with regard to adaptive reuse.”

Springfield at a glance

Year Incorporated: 1852
Population: 154,758
Area: 33.1 square miles
County: Hampden
Residential tax rate: $18.90
Commercial tax rate: $39.23
Median Household Income: $35,236
Median Family Income: $51,110
Type of government: Mayor, City Council
Largest Employers: Baystate Health, MassMutual Financial Group, Big Y Foods, MGM Springfield, Mercy Medical Center, CHD, Smith & Wesson Inc.
* Latest information available

As for the Northeast Downtown District, or blast zone, a master plan released in January and now still in the public comment period notes that, while that area, characterized by historic brick buildings and warehouses, has suffered a number of setbacks in recent years, including the gas explosion, it still “holds tremendous potential for redevelopment as a transit-oriented neighborhood.”

“We saw a few of the old faces back in here today, and it was exciting — you’re seeing some of the regular faces back. But we used to see them three or four times a week and sometimes twice a day; now, you see them once, and you hope to see them again next week — maybe.”

Elaborating, the report’s authors note that, “anchored by the newly renovated Union Station and the potential connectivity afforded by an anticipated increase in rail service in the coming years, the district is ripe for market-rate, multi-family residential development. And, in addition to a relatively affordable cost of living, the area benefits from being within walking distance of downtown amenities and cultural attractions, including the Springfield Museums.”

This potential is reflected in the ongoing renovation of the former Willys-Overland manufacturing facility on Chestnut Street into market-rate housing, said Sheehan, adding that more developments of this kind could follow.

One key to such efforts, as well as the revitalization of such areas as Apremont Triangle and the development of a needed “mixed-use commercial spine,” as noted by the report’s authors, is making Chestnut Street a two-way corridor, said Sheehan, adding that this change will dramatically increase traffic through the area and provide better linkage to other areas of the downtown, thus stimulating development activity.

 

Bottom Line

There is little doubt that COVID has slowed the pace of momentum in Springfield, a city that spent the better part of 20 years digging out of a deep fiscal morass and successfully reinventing its downtown as a vibrant hub for business, innovation, tourism, and nightlife.

The pandemic put much of that in what can best be described as a holding pattern, one that many see as thankfully coming to an end in the coming months and certainly by the end of this year.

When and how profoundly the city recovers from all that COVID has wrought remains to be seen, but with the gymnasts returning to the MassMutual Center, sculptures now adorning Pynchon Plaza, and the Thunderbirds selling season tickets for the 2021-22 season, there are now ample signs of life and sources of optimism.

Amd with them come more expressions of confidence that the city can not only regain what’s been lost, but surge even higher than in the days before the pandemic.

 

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

Features
Nate Costa expects a great deal of pent-up demand

Nate Costa expects a great deal of pent-up demand for professional hockey in the region.

“Baby steps.”

That’s what Nate Costa, president of the American Hockey League’s Springfield Thunderbirds, says the team is taking as it looks to return to the ice — and its place as a huge part of Springfield’s economic engine — this fall.

Such steps include selling season tickets, trying to secure some attractive dates from the league from home games, doing some preliminary planning of promotions, and putting together a new staff after most members of the old one — furloughed at the height of COVID-19 — found employment elsewhere. Most, but not all, of these assignments would be part of a normal late April for the team — but this is certainly not a normal April, nor a normal year.

Indeed, while 28 of the 31 teams in the AHL have been playing out an abbreviated 2021 season, the T-Birds are one of three franchises, all independently owned (the Milwaukee Admirals and the Charlotte Checkers are the other two) that have chosen to suspend play for the year and wait for 2021-22.

Costa doesn’t have any regrets about the decision not to play this winter and spring, saying the call was certainly the correct one from a business perspective — “at the end of the day, we made the right decision for the long-term solvency of the franchise; it was something we had to do” — and noting that his energies are completely focused on the 2021-22 season.

And as he talks about that upcoming season, he does so with a great deal of confidence about everything from pent-up demand for his product to what this new team he’s assembled can do between now and the time when the puck finally drops again in Springfield — October, by most estimates.

And that confidence emanates from the fact that he’s done this before.

Indeed, when a group of owners acquired a franchise in Portland, Maine and moved it to Springfield in 2016, Costa, then general manager, had to condense roughly a year’s worth of work into just a few months. It won’t be quite like that in 2021, but there are many similarities between the team’s start and what would have to be called a restart this year.

“We’re going to have to go back and redo this thing from scratch,” he explained. “And one thing I look at from a positive perspective is that I have the playbook; we did it that first year in a really short amount of time. We bought that franchise in June, and we had to play in October — we have that shotgun experience in our back pocket.”

Which brings us back to those baby steps. The team is taking many of them as it works to emerge from what will ultimately be more than 18 months of quiet at the MassMutual Center.

“We’re going through a normal renewal period with season-ticket holders — we’re folding those letters as we speak and just trying to get back to a little bit of normalcy,” he explained. “But it’s hard … we’re hopeful that, by October, we’ll be in a much better place. But you just don’t know; things change daily.”

Overall, he believes that, despite a year-long absence, the team is in a good place from a business perspective. Support from season-ticket holders and sponsors has been strong, he noted, and, from all indications, there will be a huge amount of pent-up demand for all the Thunderbirds bring to their fan base.

Meanwhile, with American International College going to the collegiate hockey tournament and UMass Amherst taking the home a national championship, there will likely be an even greater appetite for hockey locally, Costa told BusinessWest.

“I think people are excited about getting back to the arena, and I think that, when we have the chance to open the doors again, people are going to come, and they’re going to support us like they’ve never supported us before,” he said. “That’s what we’re hearing from people; we haven’t had a ton of outbound activity over the past few months, but recently we’ve finally been able to do some outreach, and there’s excitement.

“We’ve had some meetings with corporate partners, too, and there’s some support there as well — we’ve closed a few deals recently,” he went on. “We’re trying to be as proactive as possible … we’ve garnered a lot of support locally, and people are hopeful that we’ll be back to where we need to be.”

 

—George O’Brien

Features
Several sculptures created by Don Glummer now grace Pynchon Plaza

Several sculptures created by Don Gummer now grace Pynchon Plaza, and many more will soon be on display at the Quadrangle.

Kay Simpson calls it “a sculpture takeover.”

That’s how she chose to describe a new exhibit, featuring New York City-based artist Don Gummer, that will take place within the galleries of the Springfield Museums, outside on its grounds, and also within the recently renovated Pynchon Plaza.

“He’ll have three works on display in Yertle the Turtle Garden; another four, and these are large sculptures, on the Quadrangle green; one near the Blake House; an exhibition in the D’Amour Museum of Fine Arts; and several more in Pynchon Plaza,” said Simpson, president and CEO of the Springfield Museums as she referenced “Constructing Poetry: Sculptural Work by Don Gummer,” which will be on display from May 1 to Sept. 12, with many pieces in place already.

She described the works with a number of adjectives, including vertical, dynamic, and soaring, the last of which is one she hopes to also use in conjunction with the Quadrangle itself later this year.

Indeed, the Gummer exhibit will be one of the cornerstones of what will certainly be a very important year for the Museums, which, like all cultural and tourism-related attractions, took a huge financial hit due to COVID-19, with Simpson projecting that revenues for the fiscal year that will end June 30 will be off by roughly 50% from the year prior.

Other upcoming exhibits include:

• “Wild Kratts: Creature Power!” opening May 29, an immersive, interactive exhibit where kids explore four animal habitats and the creatures within them, building STEM skills as they play;

• “Horn Man: The Life and Musical Legacy of Charles Neville,” from June 19 to Nov. 28 in the Wood Museum of Springfield History; and

• “Ai Weiwei: Tradition and Dissent,” an exhibit featuring selections from three decades of work created by the internationally renowned artist and social activist. It will run from July 17 through Jan. 2, 2022.

Simpson is expecting these and other exhibits and programs, combined with large amounts of pent-up demand for culture — and simply getting out — to inspire a huge bounce-back year for the Quadrangle.

This optimism is fueled by the country’s aggressive vaccination efforts and statistics at her disposal from the Greater Springfield Convention & Visitors Bureau noting that 84% of Americans have travel plans for the next six months — the highest number since the start of the pandemic — and a good number of them will be focusing on day trips, which is what Springfield’s Quadrangle, a five-museum gem, specializes in.

“We attract people from all across the country and also international travelers coming to our museums,” she said, “but the biggest percentage of travelers are coming from the New England region.”

Simpson told BusinessWest that evidence abounds that people are looking to get back out and do the things they simply couldn’t do, or were certainly apprehensive about doing, during the pandemic. And that includes a trip, or several, to the Museums, which were closed for four long months last year before reopening to 25% capacity last summer.

The capacity limit was recently raised to 50%, and Simpson said numbers of visitors to the Quadrangle have been rising steadily over the past several months, pointing toward what she expects will be a very solid last three quarters of 2021 — and beyond.

“Once the capacity was increased to 50%, we’ve had more and more people come to the Museums,” she noted. “I think there is a real appetite for people to come out again, and I think our summer is going to be very strong, and summer will be a really good indication for us of how the rest of the year will unfold; it typically is. If we have a strong summer, we usually have a very good year.”

The Museums will not be able to conduct some of the popular family programs that have traditionally been strong draws during the summer months, due to restrictions on large numbers of people together in tight spaces, but those at the Quadrangle will make full use of its outdoor spaces and exhibits at all five museums.

That includes the the Amazing World of Dr. Seuss Museum, which, several years after its opening, continues to bring people from across the region and the country, and also from around the world, to Springfield.

“Dr. Seuss remains a huge draw — our highest attendance since we reopened in the summer was a ‘beep and greet’ we did on the weekend that followed Dr. Seuss’ birthday in March,” Simpson said. “We had 700 ticketed admissions; that’s about half of what we would typically get for a Dr. Seuss birthday party celebration, but it was a beep-and-greet — people were in their cars. That just shows the incredible drawing power he has.”

 

—George O’Brien

Features Special Coverage

Courting Possibilities

Dave Thompson stands in the lobby of the former Cinemark Theaters

Dave Thompson stands in the lobby of the former Cinemark Theaters at the mall, many of which will now be used for jury trials and other court facilities.

Since the collapse of retail began in earnest a decade or more ago, the future of the Eastfield Mall in Springfield has always been shrouded by question marks. They certainly remain today, but some recent COVID-related events — creation of a vaccination site and moving of jury trials to theaters in the malls — have certainly changed the landscape at the facility on Boston Road, while providing more proof of just what’s possible there: almost anything.

By George O’Brien

The latest map of the property at the Eastfield Mall in Springfield tells an intriguing story about just how that property is emerging — and will continue to evolve in the months and years to come.

Indeed, now positioned in the center of the huge space that connotes where several cinemas once operated is the logo for the Commonwealth of Massachusetts Court System, which will soon conduct jury trials in several of those theaters. Meanwhile, in the massive, 125,000-square-foot space that was a Macy’s store, there’s a logo for the Curative COVID-19 vaccine site now operating there, as well as the logo for Diem Cannabis, which hopes to soon operate a cultivation, manufacturing, and distribution facility at that site. And in the former Sears site, now owned by Eastern Retail Properties, there is the promise of additional retail development, the scope and nature of which is not yet known.

“It’s been extremely challenging to keeps the lights on, if you will.”

These logos and the operations behind them show how the mall’s owners have been aggressively, and imaginatively, seeking and often finding new uses for huge retail spaces at a time when retail is retrenching — to put it mildly. They also show how the mall has benefited from good luck and some unanticipated twists and turns — many of them COVID-related, at a time when COVID has made retail a very challenging proposition. Still.

“It’s been extremely challenging to keeps the lights on, if you will,” said Dave Thompson, property manager at the mall. “But we’re a pretty creative bunch here, so we’ve been able to do that; in fact, we have a waiting list for in-line tenant spaces — we’re 100% full.”

Overall, the mall is in the midst of a massive, 10-year (at least) redevelopment plan that will dramatically alter the look and feel of the landmark — yes, it can be called that — that opened in the mid-’60s to considerable fanfare. The rebranded property, to be called Eastfield Commons, will include a mix of commercial and residential spaces — roughly 450,000 to 500,000 square feet of the former, and 276 units of the latter.

The pace of progress on this redevelopment has definitely been slowed by COVID, said Chuck Breidenbach, managing director of the Retail Properties Group for Mountain Development, which owns most of the Eastfield Mall site, noting that many in the development community have taken a breather of sorts during the pandemic, especially those involved with retail.

“Everyone just dug in their heels when it came to thinking about the future,” he explained. “It’s been a tough development climate, especially with retail because so many retailers were closing — for good or with a certain number of stores. Or they were trying to downsize their footprints. A lot of that was going on before COVID hit, but COVID really accelerated that process exponentially.”

The situation has improved slightly, nationally and locally, but the retail picture remains cloudy in many respects. In the meantime, though, the mall is taking full advantage of the opportunities that have presented themselves. Together, they have provided foot traffic, some revenue, and also some insight into what’s possible at this site, meaning … well, just about anything that makes sense, a broad concept, to be sure.

For this issue, BusinessWest takes an in-depth look at what’s happening at the mall — and what could happen in the years to come at a complex with an intriguing past and a future dominated by vast potential — and a large number of question marks.

 

Space Exploration

Just after the COVID vaccine site opened, Thompson told BusinessWest, he would plant himself in the many common areas at the mall and pick up on the conversations being had, many of them involving people waiting in line to get a vaccine or wandering around the mall after receiving one.

What he heard verified what he already knew — that people who hadn’t been to the mall in years, or decades, had pretty much lost track of what was happening there; they may have taken in some headlines, but they didn’t know the full story.

“We’d hear people say … ‘I didn’t know there were still stores in the Eastfield Mall,” he said, adding that these comments were deflating in some ways — the mall still maintains a broad mix of 80 local and national retail outlets ranging from Old Navy to Hannoush Jewelers to Milan Menswear — but somewhat encouraging, at least from the perspective that people are learning, becoming more aware, and coming back to the mall for shopping visits.

“We’ve seen a good upward swing in foot traffic,” he explained. “I think we have a lot of return patrons who have gotten vaccinated and now realize there are stores here, so they’re coming back.”

The conversion of theaters into courtrooms

The conversion of theaters into courtrooms is one of several positive and unexpected developments at Eastfield Mall.

That’s just one of a number of developments that have come about, somewhat unexpectedly, and that bode well for the mall, for both the present and the future. The COVID vaccine facility is bringing large numbers of people to the site every day and, as noted, giving them a chance to update themselves on all things Eastfield Mall. The courts moving into the old theaters, meanwhile, will bring in much-needed revenue from a site that was abandoned and trashed by theater operators Cinemark and in need of major renovations if it was to be leased out again.

Meanwhile, the Diem Cannabis operation, now winding its way through the licensing process, will fill a building that has been mostly vacant for some time now, bringing new energy and vibrancy to what has been a tired retail site.

As noted earlier, some of this has been good luck, circumstance, and having the right space at the right time, while much of it has also been hard work and creativity.

“Everyone just dug in their heels when it came to thinking about the future. It’s been a tough development climate, especially with retail because so many retailers were closing — for good or with a certain number of stores. Or they were trying to downsize their footprints. A lot of that was going on before COVID hit, but COVID really accelerated that process exponentially.”

Indeed, Thompson says he isn’t exactly sure how the state found the Eastfield Mall and started pursuing it as a vaccination site. “I don’t know, and sometimes it’s better if you don’t ask a lot of questions,” he said with a laugh, adding that he took the phone call roughly three months ago (he doesn’t remember from whom) that set things in motion.

Recalling that conversation and those that followed, he said the state was impressed by the ample amounts of parking and a location that, while not ideal, is close to Mass Pike exit 7 and easily accessible to a number of communities, including Springfield, Ludlow, Wilbraham, Longmeadow, and East Longmeadow.

The state isn’t paying rent for use of the property — something Thompson certainly laments — but it has brought exposure and a boost for many of the retailers as some getting vaccines have stopped to shop or get a bite to eat.

And this new life, as temporary as it is likely to be, represents just one of a number of positive steps forward at the mall. The relocation of court trials to several of the old movie theaters is another. That was another call that seemed to come from out of the blue — and a desire to move along many of the trials that have been delayed by COVID.

The state will use three of the 16 theaters for courtrooms and several of the others for other purposes, said Thompson, adding that the initial lease is for a year, but the hope is that the state, as it looks for permanent solutions to a host of problems at the Roderick Ireland Courthouse downtown, will give serious consideration to the mall and its theaters.

“Talking with the individuals that have been here from the state, they believe that if the powers that be decide to land here on a more permanent basis, that would be fine,” he told BusinessWest. “They love the way it’s set up.”

 

What’s in Store?

As for some of those other spaces … a long-term lease with Friendly Ice Cream, headquartered just down the street, to use the former JCPenney location as warehouse space, recently expired, said Thompson, adding that there have already been discussions with many parties about using that space for the same purpose, which represents one of the more logical future uses for that site.

Breidenbach concurred. “We’d like to find another retailer, but if not, we’d would certainly be open to office, residential, or medical uses,” he said, adding that JCPenney moved out nearly a decade ago, and there have been a number of short-term tenants in the interim. “We’re looking for a long-term tenant, but the trouble now is trying to find retail tenants that will take on 125,000 square feet; right now, they are few and far between.”

Dave Thompson

Dave Thompson says the COVID-19 vaccination site has brought additional foot traffic to the mall.

While dealing with the short-term and immediate answers to the many questions hovering over the mall, the main focus is on the long term, said Briedenbach, adding that the facility will obviously become mixed-use in nature, with that mix still being a work in progress.

The goal is to create a facility where individuals can live, work, shop, eat, and attain needed services, he noted, adding that the pieces to this puzzle will come together over a number of years, depending on the appetite of the development community.

The east side of the property, which runs along Kent Road, is being eyed for residential development, he said, adding that a recent zone change of that area from residential B to residential C should help these efforts. As noted, 276 units are being eyed for land on the east side of the property, with 23 buildings of 12 units each. Meanwhile, that JCPenney site could be retrofitted for senior housing, student housing, or related types of uses, he noted.

As for other components of the live/work/shop puzzle, Breidenbach said the Diem Cannabis project could provide several of those qualities, including jobs and some retail that would bring more foot traffic to the site, possibly inspiring still more retail. The hope, and also the expectation, is that, as pieces to the puzzle come together, the broad Eastfield site will become more of a destination — for many different constituencies.

“We’re looking for a long-term tenant, but the trouble now is trying to find retail tenants that will take on 125,000 square feet; right now, they are few and far between.”

For inspiration when it comes to what’s possible, this region can look to another Mountain Development project, this one at the Eastern Hills Mall in Buffalo, N.Y., a similar initiative that is further along in the development process, said Breidenbach, adding that a local developer has been secured, and plans are now in the design stage and headed for the environmental-review process.

“That site is much larger — it’s 100 acres — and we’re looking at retail, restaurants, entertainment, hotel, office … you name it,” he said. “There are a lot of things that can be done there.”

And at Eastfield as well, he said, adding that the project is moving forward step by step, with the next one being to secure a development partner for the residential aspect of the project. After that, and once that part of the project comes off the drawing board, he expects other pieces to the puzzle to fall into place.

“This is going to be a 10-year project, and right now, we’re just taking it one piece at a time,” he said. “We’re going to go one step at a time and do what’s right for the mall and the community.”

 

Bottom Line

These days, there are far fewer lines for people to get their COVID shots. Indeed, Curative has improved the process, and now, people can arrive just before their scheduled injection.

This doesn’t leave as many opportunities for Thompson to gather intel, if you will, from those now finding their way to the mall. But in his mind, he’s already gathered enough. He knows there is still much work to do when it comes to telling the mall’s story — and an equal amount of work when it comes to filling in the canvas with regard to the long-term future of this landmark.

Thus far, through some good fortune and creative thinking, the picture is starting to fill in, and the full extent of the opportunities that exist is coming increasingly into focus.

 

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

Features

NFTs and Cryptocurrency

By Bart Galvin

 

Digital assets such as Bitcoin and non-fungible tokens (NFTs) are transforming global capital markets and the art world, with market capitalization reaching $2 trillion and digital artworks packaged through NFTs regularly selling for millions of dollars. As these assets gain prominence in the marketplace, it is increasingly important to understand why these assets appeal to investors, how they represent value, and how they function under the hood.

 

NFTs and Digital Art

NFTs have exploded in popularity in the past year, with notable examples like CryptoPunks, which are collectible, algorithmically generated pixel artworks, as well as the works of Mike Winkelmann (known professionally as Beeple), who recently sold a piece of NFT art at a Christie’s auction for $69 million.

Bart Galvin

An NFT is a unique digital token representing an interest in something else, which could be a piece of art, a share of stock, a stream of royalties, or even, in the case of Unisocks, entitlement to a physical pair of socks. NFTs are ‘non-fungible’ because, unlike cryptocurrencies, they aren’t interchangeable — your NFT corresponds to the specific entitlement or right to the underlying thing.

The eye-popping price tags of many digital-art NFTs poses the question: what exactly are you buying when you purchase an NFT? In its most basic form, an NFT is simply verifiable proof that you are the purchaser of whatever the NFT represents. But the devil is in the details. The rights granted by an NFT are entirely up its creator, so some NFTs have strict terms and conditions that prohibit exhibitions or commercial use of the art, while others might grant you the copyright in the work.

 

Cryptocurrency and the Rise of Bitcoin

Bitcoin has been the most prominent cryptocurrency since its introduction in 2008, but many other cryptocurrencies exist, such as Ethereum, an important part of many ‘smart contracts,’ and Tether, which is pegged to the value of the U.S. dollar. Bitcoin accounts for about half of global cryptocurrency market capitalization.

At the end of March, the price of one Bitcoin was approximately $60,000. Unlike a cryptocurrency like Tether, the value of Bitcoin can fluctuate wildly. Indeed, it has increased tenfold in the past year, dwarfing its previous peak of $17,000 in December 2017. The value of Bitcoin is determined almost entirely by what purchasers believe it is worth, and investors speculate on that value, driving price fluctuations. These price fluctuations can have a snowball effect, whereby widespread speculation in Bitcoin that drives the price upward can lead investors to believe Bitcoin will be adopted more widely, leading to further speculation that its value will increase.

 

Why Do People Care?

Cryptocurrencies and NFTs represent a fundamentally new way of transacting. The reason is in the revolutionary qualities of their underlying technology: the ‘blockchain.’ A blockchain can be thought of as a tamper-resistant digital store of data, constructed using computer cryptography and distributed among participants over the internet. Here’s what makes the blockchain special, and why people are jumping on board.

First, the blockchain allows parties to transact without intermediaries. No banks or clearinghouses are needed to execute or verify transactions since the underlying technology ensures that transfers are reliable, practically irreversible, and publicly verifiable.

“In the world of blockchain technology, Bitcoin and digital-art NFTs are the tip of the iceberg. There are already countless blockchain-based technologies, and new ones are invented every day.”

Second, blockchain transactions are not limited by jurisdictional or national boundaries. The transaction’s terms are dictated by computer code, not local law. Perhaps more importantly, the code is self-enforcing, which limits opportunistic behavior. Parties do not need to appeal to the judicial system to enforce an agreement because it happens automatically.

Third, blockchains are not subject to a central point of control or a central point of failure. Blockchains work by interconnecting users running the same software over a peer-to-peer network on the internet. No one party controls the blockchain. All new transactions are shared over the network, and they become final only when a majority of users determines that the transaction is valid. If a user doesn’t own the digital asset they’re trying to transfer, or tries to transfer it twice, the transaction will be rejected.

Fourth, blockchain transactions are publicly visible and verifiable. A blockchain serves as a ledger of transactions and all the transactions that came before them, allowing anyone to view and verify the trail of activity occurring over the network.

Fifth, blockchains allow parties to transact pseudonymously (not quite anonymously), without needing to trust or even know each other. All you need to know is your counterparty’s digital address or ‘wallet.’ And because transactions are practically irreversible and verified by the consensus of the network, the opportunities for fraud are heavily curtailed.

 

The Future of Blockchain Technologies

In the world of blockchain technology, Bitcoin and digital-art NFTs are the tip of the iceberg. There are already countless blockchain-based technologies, and new ones are invented every day. The blockchain is highly flexible and has tremendous untapped potential for consumer transactions, private contracts, corporate structuring, securities and derivatives, and even public administration. If your business is not using the blockchain yet, it’s only a matter of time.

 

Bart Galvin is an attorney at Bulkley Richardson, where he is a member of the Blockchain and Cryptocurrency practice group; (413) 272-6200.

Community Spotlight

Community Spotlight

By Mark Morris

Palmer has a long history as a key train stop

Palmer has a long history as a key train stop, making it an oft-discussed part of conversations about expanded east-west rail.

As the nation recovers from a year of dealing with COVID-19, Palmer Town Manger Ryan McNutt looks to the future with optimism.

While larger cities had to contend with high COVID infection numbers and revenue losses from business taxes, Palmer maintained low infection numbers and relies more on residential taxes, which remained stable.

These days, as many people in the larger metropolitan areas work from home, there is no certainty they will return to five days a week in the office. That dynamic, McNutt believes, gives Palmer a real opportunity. With the average home price in Palmer at $191,000 compared to the Greater Boston area average of more than a half-million dollars, he wants to take advantage of this moment.

“The ability to start a family and work toward the American dream is much more difficult to afford in the Greater Boston area and much easier in our area,” he told BusinessWest. “We may see a change in working conditions where office workers spend up to four days a week at home, which would allow them to live in Western Mass. and take advantage of our affordability.”

McNutt is creating a marketing plan to reach out to the Boston area as well as other densely populated urban areas to promote the value and quality of life available in Palmer and surrounding areas.

“Right now, there are three alternative plans for how the east-west rail will be configured, and Palmer has a stop in each scenario.”

One huge boon for Palmer in this regard would be the proposed east-west rail project. The plan to offer passenger rail service from Pittsfield to Boston has been included in the federal infrastructure plan about to go to Congress. McNutt said east-west rail would be transformative for his town.

“Right now, there are three alternative plans for how the east-west rail will be configured, and Palmer has a stop in each scenario,” he said. Though many steps remain before the plan wins approval and comes to fruition, town planners are looking to identify the right location, and they want to make sure it’s shovel-ready.

“I want to be so ready that, if we were told they could helicopter in a train station and drop it where a site was selected, we want to be ready for that helicopter,” he said.

 

Engine of Opportunity

The economic potential of a train stop in Palmer is not lost on Andrew Surprise, CEO of Quabog Hills Chamber of Commerce. On the job since January, Surprise looks to help chamber members increase their engagement with state and local officials, as well as identify economic programs to benefit the area.

He has already begun working on a grant for downtown Palmer through the Transformative Development Initiative, a MassDevelopment program. The grant provides incentives for businesses to locate in condensed areas, like downtown settings, that are walkable.

“That’s a positive for us because Palmer’s downtown is very walkable,” Surprise said.

He is also applying to the Massachusetts Cultural Council to have downtown Palmer designated as a cultural district. In addition to being a walkable area, a community must show it hosts arts and cultural events on a regular basis.

Surprise admits these projects will take several years to be successful, but the effort would be worth it. “A well-developed and vibrant downtown will help us bring in other businesses.”

Andrew Surprise

Andrew Surprise

“Palmer is well-placed for manufacturing facilities; its access to major highways makes it easy to get products to Boston, Hartford, Albany, and New York City.”

As part of his outreach to local officials, he reminds them of Palmer’s tradition and continued relevance as a manufacturing town.

“There has been a lot of talk on the national level about restoring manufacturing jobs,” he said, adding that communities like Palmer that have plenty of available land could be attractive to Boston-area high-tech companies looking for manufacturing space. “Palmer is well-placed for manufacturing facilities; its access to major highways makes it easy to get products to Boston, Hartford, Albany, and New York City.”

The chamber recently conducted a survey among its members to find out how they weathered the pandemic. Results so far show that two-thirds of businesses have been able to avoid employee layoffs. By finding alternatives such as reducing hours, many avoided having to reduce their staffs.

Palmer at a glance

Year Incorporated: 1775
Population: 13,050
Area: 32 square miles
County: Hampden
Tax Rate, residential and commercial: Palmer, $22.63; Three Rivers, $23.28; Bondsville, $23.67; Thorndike, $23.62
Median Household Income: $41,443
Median Family Income: $49,358
Type of government: Town Manager; Town Council
Largest Employers: Baystate Wing Hospital; Sanderson MacLeod Inc., Camp Ramah of New England; Big Y World Class Market
* Latest information available

“We conducted the survey to learn what types of services the chamber could offer to help businesses find success going forward,” Surprise said, noting that these are only preliminary results, as all surveys have not yet been returned.

As a first step, the chamber is planning a number of seminars for small businesses to help them increase foot traffic and bring in new customers through approaches such as digital marketing.

“Many small businesses are not familiar with digital or social media marketing, and it’s really a necessary tool in the 21st century,” he noted.

 

On the Right Track

McNutt is hopeful some kind of infrastructure package passes Congress because, like municipal leaders all over the country, he faces big projects that need attention.

“There are 47,000 deficient bridges in the U.S., including the nine that are in Palmer,” he said.

But for a small community, he added, taking on a big infrastructure project is a heavy lift, and Palmer has been working with U.S. Rep. Richard Neal to secure funding for at least two bridges, on Main Street and Church Street, which need the most attention.

One project that could add significantly to the town tax revenues involves building 300 seasonal cottages on Forest Lake. McNutt is excited about the potential for this project.

“Folks are coming up from New York to buy our homes because they recognize that living space, fresh air, and not being stuck in small square footage are luxuries that we have here.”

“Right now the cottages are planned for warm-weather use and would bring plenty of folks in to stay in town,” he said. “They will most likely go to local restaurants and make other purchases, so we could see a real economic multiplier effect from this project.”

Palmer has also agreed to be a host community for the cannabis industry. Two retail sites and two cultivation businesses have run into delays to start their enterprises, but McNutt blames COVID for the slowdown.

“The Cannabis Control Commission held fewer meetings than they normally would, and site visits were more difficult to do,” he explained. “In short, everything in the regulatory environment was just harder to do during the pandemic.” He feels confident at least one site will be up and running this year or early in 2022.

As the number of people vaccinated increases and COVID concerns decrease, he believes the opportunity is now for Palmer and surrounding towns.

“Folks are coming up from New York to buy our homes because they recognize that living space, fresh air, and not being stuck in small square footage are luxuries that we have here.”

McNutt noted that people can still pursue the American dream by locating to Palmer because, in addition to its natural surroundings, the town has easy access to metropolitan areas. In short, he said, “we have the best of both worlds.”

Coronavirus Features Special Coverage

The Shape of Things to Come

With the arrival of spring, stimulus checks, and vaccinations for growing numbers of residents, continued recovery from the steep economic decline of 2020 is in the forecast. But like the weather, economic rebounds are difficult to predict. With this recovery, there is still widespread speculation as to what shape it will take — U, V, W, K, even the Nike ‘swoosh.’ Myriad factors will ultimately determine that shape, from the ongoing threat of inflation to uncertainty about when and to what extent people will gather again, to questions about just how willing Americans are going to be when it comes to spending some of the money added to their bank accounts over the 12 months that ended in January.

$4 trillion!

That’s the amount Americans added to their bank accounts over the past 12 months or so, a savings rate perhaps never before seen in this country, which has hasn’t been known for that trait.

It came about because of all the things that people couldn’t spend money on, or didn’t see the need to spend on — everything from summer camp to vacation cruises; celebratory meals out at restaurants to new dress clothes; Red Sox tickets to visits to their favorite museum. Granted, there was some spending going on, especially when it came to things like pools, new flooring, and new deck furniture for the home — or a new home itself, be it a vacation home or a bigger primary residence.

“I am pretty optimistic that people are just to their wit’s end with being isolated; they really want to get out, do things, and buy things. They just want to live a normal life again.”

But, for the most part, Americans were saving in 2020.

And now that there is light at the end of the tunnel, and it seems like people will be able to spend some of the money they saved, the speculation involves just how willing they will be to go back in the water, if you will, and do some of the things they had to forgo for a year.

That’s just one of many factors that will ultimately decide the shape of the recovery we’re now in, and how quickly the nation will get back to something approaching normal.

As several of the stories in this issue reveal, the world, or at least this part of it, is returning to a sense of normal. Hotels are booking rooms again, airports are busy (or at least busier), Tanglewood and Jacob’s Pillow will have seasons in 2021 — albeit different kinds of seasons — and, overall, the state has entered into what Gov. Charlie Baker calls stage 4 of his recovery plan. This final stage will allow indoor and outdoor stadiums to run at 12% capacity, the state’s travel order to be downgraded to an advisory that recommends people entering Massachusetts quarantine for 10 days, public gatherings to be limited to 100 people indoors and 150 people outdoors, and exhibition and convention halls to operate if they can follow gathering limits.

It’s a big step forward, but much will depend on how willing people will be to gather in these places, and how confident they will be to travel. Meanwhile, there’s all that money that people saved and the latest round of stimulus checks now finding their way into people’s bank accounts. Will people spend them, and what will they spend them on?

And what if there is a spending frenzy and economists’ fears of inflation, potentially the runaway variety, become realized?

These are just some of the questions hanging over the job market and this overall recovery, which will, at the very least, be unlike anything else the country has experienced. Indeed, it has bounced back from recessions, tech bubbles, a 9/11 downturn, wars, and more. But it hasn’t seen anything quite like this — a pandemic-fueled economic crisis that wiped out millions of jobs, followed by, and accompanied by, federal stimulus on an unprecedented level.

Mark Melnik

Mark Melnik

“Just because we hear, ‘get back in the water, everybody,’ it doesn’t necessarily mean that folks will. I think there’s reason to be bullish about the Massachusetts economy in the second half of 2021 and the early part of 2022 because of the pent-up demand. But so many of these issues are going directly to the comfort level that people are going to have psychologically.”

“I’m a little less cautiously optimistic than some, but I am pretty optimistic that people are just to their wit’s end with being isolated; they really want to get out, do things, and buy things,” said Bob Nakosteen, professor of Economics at the Isenberg School of Management at UMass Amherst. “They just want to live a normal life again.”

Mark Melnik, director of Economic and Public Policy Research at the UMass Donahue Institute, concurred, but offered some caveats.

“There’s a psychological element to the economy,” he told BusinessWest. “Just because we hear, ‘get back in the water, everybody,’ it doesn’t necessarily mean that folks will. I think there’s reason to be bullish about the Massachusetts economy in the second half of 2021 and the early part of 2022 because of the pent-up demand. But so many of these issues are going directly to the comfort level that people are going to have psychologically.”

 

History Lessons

As they have many times over the past year, experts pointed to Worlds War II as the only recent point in history that can in any way compare with the ongoing pandemic, and noted that the comparisons hold when it comes to what happened when it was all over.

“During the war, people couldn’t buy a car, and there was a great deal of rationing,” said Nokosteen, adding that, as a result, people were saving. And while there was a lull right after the war ended, during which some feared the country would actually sink back into the Great Depression that officially ended with the war, people soon started spending — big time.

“Everyone wanted to spend money,” he told BusinessWest. “And they had some money — people started cashing in the war bonds they bought, and soldiers came home to the G.I. Bill. There were a lot of things that spurred the economy on, and it came back quickly after that initial slump.”

Experts are predicting something along those lines for 2021 and 2022, but there are a number of variables that could determine the ultimate shape of this recovery.

“In many ways, this recession has been the most unequal we’ve ever seen. And it has really exacerbated existing social inequalities, both in Massachusetts and nationally. People who were vulnerable to begin with are just made more vulnerable.”

“Looking at what’s taken place after the real substantial decrease in the first half of 2020, which was historic in terms of just how fast the economy contracted, and with the third round of stimulus hitting people’s bank accounts, we seem to have avoided some of the worst-case scenarios, which would have been a U-shaped recession, where we dragged along the bottom for a long time before we took off, or a very sharp, V-shaped recovery, which also would have been bad because of worries about inflation,” said Karl Petrik, a professor of Economics at Western New England University. “We managed to have missed both of those, and I’ve almost come to the opinion that we have a check-mark-like recovery.”

Elaborating, he said the country did see a recovery starting in the second half of 2020, and the second economic-stimulus package in January helped continue that momentum. The third stimulus package, coupled with pent-up demand and the ability to do things one couldn’t do in 2020 (spring break in Miami was one good example), should enable the economy to keep chugging, he went on, with the rosiest of forecasts calling for 6.5% growth, with the least rosy being around 4%.

“Both of which would be very good,” he told BusinessWest, adding that the expectation is that there will be a return to the ‘trend’ growth rate, which, after the Great Recession, was about 2.5%.

“One of the worries when you’re coming out of recession is that you know you’re going to go back to your trend growth rate — that’s why it’s the trend,” he explained. “You just don’t want to go back too soon because it just prolongs the pain in terms of the economy having the ability to recover; that’s what we saw after the Great Recession. We never saw the real takeoff, just a slow, steady, gradual growth rate up to 2019.”

Such fears probably fueled anxiety about going too small with recovery packages, Petrick noted, adding that he believes the $1.9 trillion bill that ultimately passed is certainly big enough.

Karl Petrick

Karl Petrick

“One of the worries when you’re coming out of recession is that you know you’re going to go back to your trend growth rate — that’s why it’s the trend. You just don’t want to go back too soon.”

But questions abound about how this recovery will play out and who will benefit most. With that, Melnik talked about the growing sentiment that the recovery has been, and will continue to be, K-shaped in nature, with lines going both up and down, depending on which income bracket you’re in.

“We’ve definitely seen a bifurcation in terms of educational attainment in industry, wages, and who’s been able to work and who’s been more likely to be unemployed, and long-term unemployed,” he explained. “Those people who tend to have limited educational attainment who were working in face-to-face industries, service-type sectors, including food service, restaurants, and hospitality, and other services like barber shops, dry cleaners, nail salons, and auto-repair places … those kinds of industries have been hurt dramatically, and they really haven’t recovered many of the lost jobs.

“In many ways, this recession has been the most unequal we’ve ever seen,” he went on. “And it has really exacerbated existing social inequalities, both in Massachusetts and nationally. People who were vulnerable to begin with are just made more vulnerable.”

Looking ahead and to what course the recovery will take, Nakosteen and others said so much depends on how comfortable people will be to go back to what life was like pre-pandemic, if you will.

“How are people going to feel going out in public when the public isn’t wearing masks?” he asked, adding quickly that he doesn’t know the answer. But whatever that answer is, it will go a long way toward determining how quickly and how profoundly the country, and this region, are able to rebound.

“It isn’t just vaccinations and dealing with these new variants,” he went on. “A lot of what will determine if there’s pent-up demand and how it’s released is truly behavioral. There’s no economic reason for there not to be a sharp rebound; I think it’s behavioral, it’s epidemiological, it’s medical.”

 

What’s in Store?

As for spending … area retailers are obviously looking for the lid to come off, although in some cases, the lid wasn’t on very hard to begin with.

Dave DiRico, owner of the golf shop in West Springfield that bears his name, said that, after a very quiet early spring last year, there was a surge in spending on golf equipment and apparel as many people picked up the game, or picked it up again, because it was one of the few things people could actually do.

It’s early in the new year, but that trend is continuing, he told BusinessWest, adding that the store has been packed with players loading up for the coming year.

“We’ve been really, really busy, even for this time of year,” he said. “A lot of people have money to spend, and … they’re spending it. We’re seeing a lot of people coming in telling us they’re spending their stimulus money, and that’s a good thing. That’s what it’s for, when you get right down to it — stimulating the economy.”

Peter Wirth, co-owner of Mercedes-Benz of Springfield, expressed similar sentiments, noting that, after sales ground to a halt right after the lockdown of last March, they picked back up as stimulus checks came in, carmakers started offering almost unprecedented incentives, and consumer confidence picked up.

Granted, lack of inventory, fueled by supply-chain issues, slowed the pace of progress somewhat, but many consumers simply ordered vehicles and waited — sometimes for months — for them to arrive at the dealership.

“The main things for us is consumer confidence,” he noted. “If the consumer has confidence in the economy as a whole and in their own situation, where they don’t feel like they’re going to lose their job next week, that’s when they’re going to spend money. And that affects us just like it impacts any other business. And I think more and more consumers feel we’re going to come out of the woods on this year, this summer, whenever it is.”

The picture is improving when it comes to inventory issues, said Wirth, who expects the numbers of new cars on the lot to continue rising through the year. Meanwhile, manufacturers are keeping their foot on the accelerator when it comes to incentives. Overall, he expects 2021 to be another solid year — one comparable to those just before the pandemic in terms of overall sales and service volume.

“We feel pretty about this year,” he said. “One news story can certainly change that, but the outlook for now is good, and that line about a rising tide lifting all boats is true, and we hope that this rising tide will help those businesses in hospitality and other sectors that have suffered so much.”

One sector certainly looking for a different kind of 2021 is the clothing industry, specifically businesses focused on dress clothes. Many workers simply didn’t have to buy any in 2020, as they working at home or still toiling in the office, often with more casual dress codes to match those of people working from their kitchen table.

“As a business owner, 2020 was my most challenging year, bar none; I was faced with more struggles and complications and challenges and problems to solve and situations to fix than I’ve ever faced before,” said William Brideau, owner of Jackson Connor, located in Thornes Market in Northampton, adding that the store has managed to keep going through persistence — and a PPP grant. But the challenges have continued into 2021.

Indeed, the first quarter of this year has in many ways been his most difficult, he said, due to a gap between infusions of stimulus, when it became more difficult to pay the bills. As more support comes in, he’s feeling optimistic about 2021, but he needs people to start investing in new threads — and not just shirts that can be seen during Zoom meetings.

William Brideau believes many people are ready to get dressed up

William Brideau believes many people are ready to get dressed up, which bodes well for his store, Jackson & Connor, which suffered through a rough 2020.

“A lot of people aren’t going for pants or more formal things below the waist,” he noted. “A lot of shirts, sweaters, and sport coats — and things have certainly veered more casual.”

But he has observed a pendulum swing of sorts, with more customers coming in recently looking for suits and ties.

“One of our really good customers came in recently and said, ‘I’ve had it — I’ve been in sweatpants for months, and I’m sick of it. I need a sportcoat, I need a shirt and tie, I need trousers. I want to look like I used to look; I miss that,’” said Brideau, adding that he believes many more people harbor similar sentiments.

 

Bottom Line

Over the past 12 months, people have come to miss a lot of the things they once enjoyed. The extent to which they’ve ‘had it’ with these matters — everything from the clothes on their back to the restaurants they haven’t been frequenting — will ultimately determine not just the composite shape of the recovery, but how, and for whom, things bounce back.

As Melnik noted, just because the ‘go back in the water’ advisories are out doesn’t mean people will heed them. And if they don’t, more of that $4 trillion will stay in bank accounts. And that might ultimately push back the date when we can really say the pandemic is behind us.

 

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

Community Spotlight

East Longmeadow Focuses on Improvements

By Mark Morris

From left, Michael Meunier, owner Kendall Knapik, and Orpheus Barrows from Pioneer Valley Arms.

From left, Michael Meunier, owner Kendall Knapik, and Orpheus Barrows from Pioneer Valley Arms.


When Mary McNally reflects on 2020, it’s with no small amount of gratitude for how well her town has weathered the pandemic up to this point.

“To state the obvious,” she said, “it’s been one heck of a year.”

As East Longmeadow’s town manager, she credits all the municipal staff, in particular the Health Department, for its efforts to advise and inform the public on COVID-19 matters, as well as the town’s emergency manager, Fire Chief Paul Morrissette.

“The pandemic gave people the chance to see how dedicated and committed municipal public workers are to the mission that is their vocation,” McNally said. “Their willingness to do what has to be done and go wherever they are needed is something people are aware of and appreciate. I certainly do.”

Though Town Hall has been closed since March 16 of last year, staffers have been able to meet the community’s demand for services through online meetings, e-mails, and phone calls.

“We had staff, including department heads, who met people in the parking lot of Town Hall if they needed access to a particular department for a document or other item,” she said. “It was like they were carhops at the old A&W.” Without committing to any specific timeline, she is hopeful Town Hall will reopen to the public in the next 90 to 120 days.

Though she has been the full-time town manager for only 16 months, McNally has been working on a master plan for East Longmeadow to better prioritize important projects. The town recently received a grant from the Pioneer Valley Planning Commission to hire a consultant to develop the plan. McNally said a recent Zoom session to plot out the vision of the master plan drew great participation from residents. Part of the grant requires the master plan to be completed by June, and she is confident about meeting that deadline.

“To state the obvious, it’s been one heck of a year.”

Back in December, the town council changed a zoning bylaw that has a direct impact on the site of the former Package Machinery. Once zoned only as industrial, the change allows for mixed use, which would allow residential as well as commercial buildings to locate there. McNally said the new zoning bylaw applies townwide.

“Previously, mixed-use zoning didn’t exist in East Longmeadow,” McNally said. “Because this zoning change applies to more than just the Package Machinery site, it opens the door for developments all over town.”

At this time, there are no formal proposals to develop the Package Machinery site, but past discussions have suggested construction of single-family homes, condominiums, apartments, and light-use business entities, she noted. “The idea would be to have a new walkable neighborhood near the bike trail and the center of town.”

 

Business Perspectives

While several businesses in East Longmeadow suffered from the pandemic, others experienced more demand for what they sell. Bobbi Hill is the fourth generation to work for W.B. Hill, a custom builder of oil trucks that has been incorporated since 1910 and located in East Longmeadow since 1965.

Hill’s title is manager, which she defines as running sales, marketing, parts, and human resources. The company primarily builds and maintains tank trucks, the kind that carry home heating oil and trailer tanks (known as ‘trailers’ or ‘tankers’) that connect to a truck cab, most often associated with hauling gasoline. Despite the world burning less petroleum during the pandemic, Hill said she saw only minor impact in a couple areas of business.

“The pandemic had a little impact on service work for tankers that needed repair,” she noted, quickly adding that COVID has not affected sales of new tank trucks, which have a backlog of orders. “If a customer walked in today to order a tank truck, I probably wouldn’t be able to deliver it until September.”

In the only consumer-facing part of the business, W.B. Hill is an official vehicle-inspection station. At the beginning of the pandemic, it shut down the consumer-vehicle business but continued with tanker inspections. “Pandemic or not, tankers need to be inspected,” she said. “They go through a lot of rigorous testing every year and cannot travel with an expired sticker.”

Though business is brisk right now and there is still plenty of demand to transport heating oil and gasoline, Hill has begun looking to the future.

“With electricity being pushed all over the country, I’m looking for us to become more of a parts business,” she said. By purchasing a building next door from Northeast Wholesale Lumber, she conceded that her “big dreams” of increasing the parts business is not happening right away because of high startup costs. Until then, Northeast continues to lease half the building.

“We are experiencing a bit of a boom in housing due in large part to the low interest rates.”

“We sell parts now, but I’d like to do more online and on a much larger scale,” she said. “There really isn’t anyone in New England who sells parts for these vehicles.”

Though a relatively new business in East Longmeadow, Pioneer Valley Arms (PVA) is another business that remained active during the pandemic. Owner Kendall Knapik, who opened the shop two years ago, had to shut down in the early days of the pandemic. A lawsuit by other gun stores claiming infringement of Second Amendment rights forced Gov. Charlie Baker to deem gun stores an essential business. When she reopened, Knapik’s already-successful shop saw a jump in sales.

“After the pandemic hit, our customer volume tripled,” she said. “We’ve increased our clientele tremendously, and we’re teaching many more safety classes.”

The combination of COVID-19, protests that took place in different parts of the country, and the presidential election all played a role in driving sales, she added. “Uncertainty and election years tend to drive sales more than a typical year.”

Knapik talked about a new wave of people coming in to protect themselves, their homes, and their loved ones. After 10 years in an industry she described as most often serving middle-aged male clients, Knapik opened her business to counter what she called the “usual gun-shop attitude.”

“It’s an attitude where shop owners and employees tend to be closed off to new clientele such as females,” she explained. “I wanted to have a shop where women and men would feel welcome and not afraid to come in.”

E. Longmeadow at a Glance

Year Incorporated: 1894
Population: 15,720
Area: 13.0 square miles
County: Hampden
Residential Tax Rate: $21.06
Commercial Tax Rate: $21.06
Median Household Income: $62,680
Median Family Income: $70,571
Type of Government: Town Council, Town Manager
Largest Employers: Lenox; Cartamundi; CareOne at Redstone; East Longmeadow Skilled Nursing and Rehabilitation
* Latest information available

Her strategy seems to be working, as female customers to the store have increased 30%. “I’ve done more background checks on gun sales for women in the past few weeks than ever before.”

Knapik made it clear that proper training and gun safety are the top priorities for PVA. She and her staff now hold safety classes every night of the week and, since the pandemic, have increased the number of classes during the day on Sunday.

“Our store draws many who are first-time buyers, so we get a lot of new people who just want to come in to learn about getting their gun license and what’s involved,” she said. “It’s something we definitely encourage.”

A potential gun owner must take a safety course in order to apply for a license-to-carry permit in Massachusetts.

“Some people are ready to pursue the process right away, while others need to mentally prepare themselves for it,” Knapik explained. “We’re just happy to be there to help them, whether they decide to pursue a license or not.”

 

Community Focus

Knapik credits her involvement in the East of the River Five Town Chamber of Commerce for helping to establish her business in town, and called joining the chamber “the best marketing decision we made.”

“Customers have really responded to the small shop and family-owned feel of PVA,” she said, adding that she and her staff are on a first-name basis with many of their customers.

While Knapik praised East Longmeadow as a welcoming place to do business, increasing numbers of people are finding it a good place to call home as well. McNally said 28 new houses and condominiums were completed in 2020, and an additional 19 homes and condos are currently under construction.

“We are experiencing a bit of a boom in housing due in large part to the low interest rates,” she said. Three developments — Bella Vista, Hidden Pond, and Fairway Lanes — have added 45 new building lots to the town.

Looking ahead, East Longmeadow continues to work with the Massachusetts School Building Assoc. to study whether the town needs to replace the 60-year-old high school with a new building or if the existing facility can be renovated to suit educational needs for the future. McNally sees the potential for a new high school as a key to keeping the community vital.

“If people have confidence in the educational system, it inspires them to be happy citizens who want to contribute to the betterment of the town.”

McNally concluded that, while many of the projects in town have not been completed, all are progressing. “We have several big projects that all require lots of time, attention, and planning. I’m pleased because we have a dedicated staff working on them full-time.”

Clearly, despite enduring “one heck of a year” marked by a worldwide pandemic, East Longmeadow is staying on track with important projects that promise to add economic vibrancy and quality of life.

Community Spotlight

Community Spotlight

Tyler Saremi

Tyler Saremi sees potential in West Springfield’s downtown, and is taking steps to inject some economic vibrancy.

When Tyler Saremi looks at what is considered downtown West Springfield — the Elm Street/Park Street area — he doesn’t see Northampton or West Hartford.

But he can easily imagine a day when that section of this city that still calls itself a town can attain something approaching a level of vibrancy and an eclectic mix of businesses, especially those in the hospitality sector, that define those communities.

And he’s doing his best to bring that day closer. Indeed, the multi-faceted business run by his family that he serves as vice president, Saremi LLP, acquired 95 Elm St. — known to most as the United Bank building because it was the main tenant for many years — with the goal of … well, turning back the clock in many respects.

The century-old building has, over the decades, been home to cafés, restaurants, a grocery store, banks, and other types of retail, said Saremi, adding that it has always been a destination, and the broad goal with this project is to make it one again. Thus, it has been rebranded as Town Common.

Already, Tandem Bagel, the Hadley-based company with locations there and also in Easthampton and Northampton, will soon occupy space where bank-teller windows have stood on the first floor; the target date for opening is July. Meanwhile, at the other end of the first floor, Saremi pointed to the place where intends to put a restaurant. He said two other leases have been signed, and several more are pending.

“People are just really excited to be part of bringing downtown West Springfield back,” he said. “Our main intention is a café and a restaurant on the first floor; whether we have to open a restaurant ourselves or partner with someone, we don’t care. That’s part of our commitment to West Springfield — it needs a café, and it needs a restaurant, and that’s what we’re going to do.”

“It’s going to be a tough year, but there are reasons for optimism — we see things opening back up.”

The redevelopment of 95 Elm St. is just one of the intriguing stories unfolding in West Springfield, a community that is, like many others, trying to rebound from a pandemic that has taken a huge toll on hospitality-related businesses. And West Side, as it’s called, has many of them, said Mayor Will Reichelt, who counted 20 hotels and motels and a number of restaurants in his community.

But the biggest business in that sector, obviously, is the Big E, which is responsible for filling many those hotels, motels, and restaurants, not just during the 17 days of the annual fair, but almost year-round, as that venue hosts a number of shows centered on everything from horses to toy railroads; dogs to guns and knives.

The Big E has been mostly empty and silent since the pandemic arrived a year ago, and while the outlook for 2021 is more promising, there remains a huge number of unknows, especially with regard to the fair, a situation that Big E President and CEO Gene Cassidy summed up this way:

“It’s like you’re navigating your way down a dark alleyway; you don’t know what’s in front of you — if there’s suddenly going to be a crack in the pavement or if you’re going to walk into a dumpster,” he said, using that phrase to indicate how difficult it is to plan when the rules keep changing, often without much, if any, notice. “Our goal, simply, is to plan to produce a product that people are going to enjoy.”

Cassidy is quite confident there will be a Big E this September — he just doesn’t how many people will be allowed to attend. He doesn’t think it will be full capacity, as in 100,000 people on a weekend day, as in fairs past. Instead, he’s expecting some percentage of that number, which won’t be ideal, but certainly better than last year.

And while most of his energy and attention is still focused on this year’s fair, he said he’s spending a good amount of time lobbying officials to understand the importance of fairs and live events in general, and to help ensure the long-term survival of such institutions, something he believes is now imperiled.

Overall, though, he’s optimistic about the rest of 2021.

Gene Cassidy says a sparsely attended Big E is better than none at all

Gene Cassidy says a sparsely attended Big E is better than none at all, and he’s moving forward with planning after having to cancel the 2020 fair.

“It’s going to be a tough year, but there are reasons for optimism — we see things opening back up,” he said, noting that various expert projections of herd immunity by fall or even sooner are encouraging, even as innumerable challenges and question marks loom.

For this, the latest installment in its Community Spotlight series, BusinessWest takes a hard look at West Side and its efforts to become even more of a destination, even as its business community continues to battle COVID-19 and all the challenges it has brought.

 

Road to Progress

Reichelt, now wrapping up his second term in office, with plans to seek a third, said he can’t find too many silver linings from the pandemic and all the havoc it caused in 2020.

But he can find at least one — acceleration of the process to replace the Morgan-Sullivan Bridge, which connects his city with Agawam. The bridge project, which commenced two years ago, has to pause during the 17-day run of the Big E, he explained, adding that work actually comes to a halt for three weeks or more because of logistical concerns.

Obviously, that didn’t happen in 2020, he went on, adding that a project that was due to be completed this summer will now be done by spring.

“The work is way ahead of schedule,” he said. “Without the Big E, they probably gained a month of working time, and that will certainly help out on the back end.”

The broad mission moving forward is to get more people to travel over that bridge and other thoroughfares into West Side, said Reichelt, adding that the city has always considered itself at the crossroads of this region — I-91 and the turnpike connect there, and Route 5 runs through it as well. This location has long been a huge asset, one that paved the way, if you will, for major retailers and car dealers alike to populate Riverdale Street and Memorial Avenue. It has also brought visitors to the community not only for the Big E and shows on its grounds, but for myriad other tourism- and business-related functions, from leaf peeping to the semiannual EASTEC trade show.

The ongoing goal is to continually take advantage of this asset, build on the foundation that’s been laid, and try to spread the vibrancy to other areas of the city.

Which brings us back to Elm Street, Town Common, and the huge ‘Under New Management’ banner now adorning it.

As he gave BusinessWest a tour, Saremi pointed out the spot where Tandem Bagel would go, then did the same with the restaurant. Venturing to the second floor, much of which is now occupied by Saremi LLP, he showed where a number of smaller spaces, individual offices, and even co-working space might be carved out.

“We want to make it more walkable, more friendly, and more inviting so we can complement the business investment that’s happening there.”

Later, he pointed out one of the huge windows to the traffic — specifically, the juncture of Route 20 and Elm Street.

“This intersection has so much traffic … we need to get people to stop here in downtown West Side, get out, walk around, go to some shops, get something to eat — that’s how I see it,” he noted, adding that there are already some attractions there, including the Celery Stalk restaurant, a legendary luncheon stop; as well as bNapoli restaurant and the Majestic Theater. The broad goal is to build on that critical mass, he said, noting that clusters of eateries and entertainment venues have been the formula for success in Northampton, West Hartford, and other communities.

Reichelt concurred, and told BusinessWest the city is always striving to build on its already-impressive portfolio of retail- and hospitality-related businesses — and also fill in some spots that are less vibrant than others.

Mayor Will Reichelt

Mayor Will Reichelt says initiatives like a new economic recovery director and a series of infrastructure plans will help keep West Springfield on the right track.

As an example, he pointed to Riverdale Street, which actually has two distinct sections, if you will. There’s the one south of I-91, which is thriving and always has, said the mayor, who worked at the Donut Dip on that throughfare in his youth and thus speaks from experience. Then there’s the stretch north of the highway, which, while still vibrant by most measures, has some vacancies and, in general, is underperforming.

Reichelt said the city will look to help address this situation, and other business and economic-development issues in the city, through the hiring, at least on a temporary basis, of what’s being called an ‘economic recovery director.’

“The goal with this new position is to build better business relationships in the community, help with business retention, and focus on some of the underutilized areas, like the north-of-91 section of Riverdale,” he explained.

Already, there are signs of progress, he said, noting the reopened White Hut, the expansion of Calabrese Market on Park Street, and the sale of the former Hofbrahaus property to the owner of the Hangar Pub and Grill and growing ‘Wings Over’ stable of restaurants, among other positive developments.

“The common citizen wants their life to return to normal,” he said. “So I think people will come out … they will come back to fair.”

Meanwhile, a number of infrastructure plans now in place are designed to improve traffic flow and, ultimately, promote more vibrancy in the city. First up is Park Street, he said, adding that it is being repaved and steps are being taken to taken to make the commons more accessible and safer to use. Those plans include what the mayor called a mile-long loop or walking and biking trail around the green space.

Elm Street will follow, he went on, adding that this will be a multi-faceted initiative designed to beautify the area, add more parking, redesign the intersection of Elm Street and Route 20, and allow people to make more and better use of the green space there.

“We want to make it more walkable, more friendly, and more inviting so we can complement the business investment that’s happening there,” he told BusinessWest, adding that this project is in the design phase and should commence in 2022. Likewise, a huge, $25 million project to improve traffic flow on Memorial Avenue will take place that same year.

 

Fair Assessment

Sitting in the large conference room in the Big E’s administration building, Cassidy reflected on what has been an ultra-challenging 12 months for this regional institution — and what lies ahead, to the extent that he could, obviously.

He said every aspect of this enterprise — from the annual fall fair to the year-round shows that draw visitors from across the Northeast, to the restaurant on the grounds, Storrowton Tavern — have been deeply impacted by the pandemic.

And the hurt is still being felt. The shows slated for weekends in January and February were all canceled, he said, with some, including the huge Western Mass. Home & Garden Show, moved back on the calendar, in this case to August.

The Big E has received some support — nearly $1 million in the first round of PPP, with an application in for the second round of funding. There have been some cutbacks — the workforce has been trimmed from 30 full-time employees to 25 — and those who are left have found themselves with … let’s call them broadened job descriptions.

“Those of us who are still here have had to do jobs we’ve never had to before,” he noted, adding that such tasks include everything from directing traffic for the few events that have been staged to making sure the buildings on the grounds are secure. “Everyone has had to pitch in.”

West Springfield at a glance

Year Incorporated: 1774
Population: 28,529
Area: 17.5 square miles
County: Hampden
Residential Tax Rate: $16.90
Commercial Tax Rate: $32.49
Median Household Income: $40,266
Median Family Income: $50,282
Type of Government: Mayor, City Council
Largest Employers: Eversource Energy, Harris Corp., Home Depot, Interim Health Care, Mercy Home Care
* Latest information available

As for the last three quarters of 2021, Cassidy said there are certainly some signs of optimism with his industry. For example, the Canadian government recently gave the green light for the popular Calgary Stampede to take place in June. Meanwhile, the Pasco County Fair in Florida was recently staged, albeit with a number of restrictions and safety precautions in place.

Cassidy took it in while on a trip to Tampa for ‘Florida Week’ and a number of trade association meetings that were staged in-person, which is significant in and of itself, he noted, adding that the main topic of conversation, obviously, was how to stage events safely.

“Interestingly, at the Pasco County Fair, we were there on a Tuesday night, it was chilly, but the fair manager indicated that attendance actually exceeded what it was last year, and he attributed that to the fact that people want to get out,” he recalled. “They want to resume ‘normal,’ and that’s in a state where businesses have been open and Main Street is open.”

But while he can look ahead and try to plan, there are too many question marks to do the latter with any amount of efficacy. These question marks surround everything from what the attendance restrictions will be to whether — and under what conditions — the state buildings can open, to whether individuals and families will be willing to come back out and be part of a mass gathering on the midway or one of the concert venues.

The major consideration is what will be permitted for attendance, said Cassidy, adding that it’s a simple but troubling fact that the costs of operating the fair will be roughly the same whether it’s at full capacity, 50%, or some other number. But the bottom line is that a smaller fair, attendance-wise, is certainly preferable to no fair at all.

“It costs the same to produce the fair for 1.6 million people as it does to produce the fair for one,” he said. “Our staff is preparing a conventional Big E and will try to deliver the product we’re known for.”

Cassidy believes that, as he saw in Florida, there will a significant amount of pent-up demand and that people will want to return to the fairgrounds.

“The common citizen wants their life to return to normal,” he said. “So I think people will come out … they will come back to fair.”

Reichelt agreed, and said the return of the fair this fall, even a smaller fair, will help the region’s economy and, specifically, many of those hospitality-related businesses that have been deeply impacted by the pandemic.

“Having it happen will be good, not only for the Big E, but for the region to bring back that sense of normalcy,” he noted. “And it will be helpful for businesses in the area as they start to recover from all this.”

 

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

Features

Work After the Pandemic

By John Graham

It’s been a year now since we came under the relentless domination of the coronavirus. After all this time, the picture isn’t pleasant. The end is uncertain, and the implications for the future are far from clear.

McKinsey reports that “75% of employees in the United States and close to a third in the Asia-Pacific region report symptoms of burnout. European nations are reporting increasing levels of pandemic fatigue in their populations. The number of those who rate their mental health as ‘very poor’ is more than three times higher than before the crisis, and mental-health issues are still likely to rise.” In spite of their severity, such figures should get our attention, but do they?

Perhaps the most dangerous part of the coronavirus is its divisiveness. More often than not, outside attacks — wars, famines, and natural disasters — bring us together to slay the dragon. But the pandemic has driven us further apart. Who would have thought life could take such a painful turn?

Overnight, workers were told to leave their jobs and work from home. Not only did they do it, they liked it. Now, many are ready to refuse to go back to claustrophobic cubicles or vacuous open spaces where they lacked privacy. To express their pleasure at working from home, they remodeled their bedrooms, kitchens, and basements; upgraded their internet connection; purchased all sorts of digital devices and office equipment; and didn’t miss a beat.

They’re choosy, too. “You want me in the office? I don’t think so.” Some moved to Boise or some other place in the middle of nowhere that welcomed them with open arms and lower living costs. They donned their sweats, popped open a laptop, jumped on virtual meetings, adjusted the lighting, turned on a monitor or two, and went to work in their new, $999 office chair, or decided to stay in bed and make it their office that day. To the utter surprise to everyone, productivity went up.

That’s just the first chapter. The McKinsey report also notes that “there is a veritable flood of new small businesses. In the third quarter of 2020 alone, there were more than 1.5 million new-business applications in the United States — almost double the figure for the same period in 2019.” That’s not all. The fourth quarter found Apple ripe for success with the highest revenue in its history — and the company wasn’t alone.

 

Four Lessons

All this adds up to an amazing, but totally counter-intuitive, story. But what does it mean to all of us who must live it? Literally, what in the world is going on? Even more to the point, what’s the message about the future — our future? Here are four thoughts about that.

“Overnight, workers were told to leave their jobs and work from home. Not only did they do it, they liked it. Now, many are ready to refuse to go back to claustrophobic cubicles or vacuous open spaces where they lacked privacy.”

The genie is out of the bottle. It’s finally happened. To put it another way, like no other phenomenon in modern history (perhaps in all of history), the pandemic released a level of momentum sufficient to turn the world and everything in it upside down in an instant. It may also be the catalyst that changes everything, from politics, government, and public policy to health and medicine, education, work-life balance, business, entertainment, culture, industry, and science. When Jeff Bezos, the CEO of Amazon, steps back, we can be sure profound change is in the air.

 

Far more people have seats at the table. We talked for so long, but nothing changed. Then, suddenly, we became keenly aware of those who had long been invisible to us. We raised our hands and called them ‘heroes’ but never raised their wages. Now, all of a sudden, we’ve finally figured out that when everyone has a seat, we have better healthcare, better jobs, stronger families, and happier communities. Could it possibly be that it took a painful pandemic to make more room at the table?

 

Everything is under a microscope. Again, counter-intuitive but nevertheless true: the number of applications for fall 2021 at the University of California are breaking all records. It’s happening at the same moment when millions of young Americans are questioning the value of a college education, particularly if it will take decades to free themselves from the sobering shackles of student debt. Those who went before them, the Millennials, are dogged in determining their own way in the world. Don’t be surprised. The lens of the microscope may never rest.

 

Don’t drink the Kool-Aid. There are dangers in the tension-filled, stressful times in which we find ourselves. Someone has aptly described it as “hitting the pandemic wall,” and it’s felt at home and at work. It’s when we reach out for relief so we can get our lives on a better path. Simple, quick, and easy answers are what sell in turbulent times: “buy this or do that, and your problems vanish, and your dreams come true.” We’re too resilient to do that to ourselves.

 

Bottom Line

Now, go back to where we started, the original question: “Who will have the upper hand after the pandemic: employers or employees?

All this leads to the final question. Through the pandemic frenzy, who will come out ahead, the workers or employers? The way it looks at the moment, it just may be the workers. But, as we all know, things can change. u

 

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of Magnet Marketing and publishes a free monthly e-bulletin, “No Nonsense Marketing & Sales Ideas”; [email protected]

 

Community Spotlight

Community Spotlight

 

Aaron Vega

Aaron Vega says Holyoke lost considerable momentum to the pandemic, but it has a solid foundation on which to mount its recovery.

When he made up his mind roughly a year ago not to seek re-election to the state House seat he had held for four terms, Aaron Vega had an informal list of things he would like to do next when it came to his career.

Working in Holyoke City Hall certainly wasn’t one of them. But … things changed, in many ways, and in a profound way.

For starters, the COVID-19 pandemic limited some of the other options he was thinking about professionally, especially those in higher education, economic development, and workforce development. More importantly, though, Marcos Marrero, the long-time director of Planning and Economic Development in Holyoke, decided that he, too, wanted a change. And as he went about looking for someone to fill his rather large shoes, he started talking to Vega, someone who obviously knew the city, was heavily invested in its future, and was looking for work.

“Working for the city wasn’t really on my shortlist — and not in a negative way,” said Vega, the former Holyoke city councilor who started his five-year appointment just a few weeks ago. “Marcos reached out to me and asked if I’d be interested in taking the position; it came out of the clear blue sky. I was honored that he saw me as someone who could take the reins and keep going.”

He takes the helm in economic development when Holyoke, like most communities, and especially the urban centers, are looking to regain momentum lost due to the pandemic.

And, in the case of the Paper City, it’s a large amount of momentum.

Indeed, over the past several years, Holyoke had made great strides in a number of areas — downtown revitalization, with its cultural economy, with entrepreneurship and new business development, and, most recently, with cultivation (pun intended) of a new and potential-laden industry sector: cannabis. Indeed, with Mayor Alex Morse — who will not be seeking re-election in November and has been offered the the job of town manager of Provincetown — putting out the red carpet for the cannabis sector and the city blessed with millions of square feet of vacant mill space that is in some ways ideal for cannabis growing and other aspects of this business, Holyoke has become a destination for companies looking for a home.

The pandemic has certainly slowed the pace of progress in most of these areas, though. It has certainly impacted the cultural economy, most notably with the news that Gateway City Arts, the multi-purpose arts venue, has closed, and its owners are looking for a buyer. But signs of lost momentum are everywhere. The Cubit Building, once a symbol of downtown revitalization, is still humming on its residential floors, but the Holyoke Community College MGM Culinary Arts Center has been all but shut down by the pandemic. Meanwhile, there are still a number of vacancies on High Street and other downtown throughfares. And the Holyoke St. Patrick’s Day Parade, a significant economic engine for Holyoke and the region as a whole, has been canceled for the second year in a row.

“A lot of the groundwork is sort of done, and in some ways, this office how has to be more proactive and outward-facing — how can we go out to private industry and market Holyoke better? We need to go door-knocking and tell people, ‘think about Holyoke as a place to set up shop.’”

“That’s been a huge financial hit to the restaurants and many other kinds of businesses,” Vega said of the parade. “The trickle-down impact is severe.”

Even the cannabis sector has been slowed a little by the pandemic, but in most all respects, it remains a powerful force in Holyoke, with more than 30 ventures currently at some stage of progression and perhaps 300 new jobs coming to the city with the slated opening in the next few months of Florida-based Truelieve’s facility on Canal Street.

The company, which has more than 2 million square feet of cultivation facilities and more than 70 dispensaries across several states, will operate a multi-faceted, vertically integrated operation that will include cultivation, production, and office operations in a 145,000-square-foot facility formerly occupied by Conklin Office.

“We understand scale, we understand supply chain, and we’re going to be bringing that experience to Massachusetts as we build out our cultivation here,” said Lynn Ricci, director of Investor Relations and Corporate Communications for the company, adding that the company expects to begin operations by the third quarter this year and employ between 250 and 300 people from the Holyoke area when fully operational.

For this, the latest in its Community Spotlight series, BusinessWest turns its lens on Holyoke, an historic city that has bounced back from its decline in the ’60s and ’70s, and must now, in some ways, bounce back again.

 

Growth Opportunities

Vega is certainly no stranger to the large office he now occupies on the third floor of the City Hall annex building.

When he was a state representative, he would meet with Marrero there every month so he could keep pace with what was happening in the city where he grew up, spent most of his childhood life, and still lives.

Gateway City Arts is just one of many Holyoke businesses

Gateway City Arts is just one of many Holyoke businesses in the arts and hospitality sectors to be devastated by the pandemic.

“We had a standing meeting with him in this office to keep up to date on all the projects that were going on, particularly around cannabis, because I was on the Committee on Cannabis Policy,” he explained. “So I was familiar with most of what was going on in this office, and I knew everyone in this office.”

Today, he’s having those same meetings with Patricia Duffy, his former legislative aide who successfully ran for his House seat last year.

“We just met a few days ago,” he said with a laugh. “We have a standing monthly meeting. It’s interesting being on the other side of the table — I spent the last eight years fighting for funding for all these programs, and now I’m actually utilizing them, and that’s kind of fun.”

Offering a similar update of sorts for BusinessWest, Vega focused on the momentum that has been lost in the city and the need to turn the clock back, in some respects, and put Holyoke back on the intriguing path it was on before March 2020.

“If you look at Gateway City Arts … the pandemic just took the wind out of them, it took the momentum away; it’s like someone slammed the door in their face.”

Before getting to that, though, he was asked to elaborate on the circumstances that brought him to his current post.

“I wanted to focus more,” he said simply when asked why he wanted to move from his House seat. “One of the great things about being a state rep is all the different topics and issues that come across your desk. But, that said, you don’t really get to focus on anything; the best description of my job as state rep was that I was in a permanent liberal-arts education — and there were certain topics that I just wasn’t passionate about.”

He is certainly passionate about Holyoke, and his goal now is built on what had been achieved in the years before the pandemic.

“What Alex and Marcos did was change the conversation about Holyoke, they changed the direction of a lot of the development, and they helped usher in a plan — the urban-renewal plan,” he explained. “A lot of the groundwork is sort of done, and in some ways, this office how has to be more proactive and outward-facing — how can we go out to private industry and market Holyoke better? We need to go door-knocking and tell people, ‘think about Holyoke as a place to set up shop.’”

The story the city can tell is a good one, although, as noted, it was better before the pandemic.

“Things were happening in this city; the momentum was happening,” Vega said. “It took a while to build that momentum, and hopefully we can get it back soon.”

The loss of Gateway City Arts, however, is a serious setback for the community.

“It was firing on all cylinders,” he said, referring to everything from its event venue to its popular restaurant. “And it’s ironic because we’re six or seven months away from having 200 to 400 more people working in downtown Holyoke in the cannabis industry — people who will be looking for a place to go eat or have a beer or listen to music after work. The irony is that we don’t have that right now.

“The biggest hit has been with momentum,” he went on. “Our restaurants took a hit, just like Northampton and Springfield; the housing developments, especially if they were dealing with state incentives, have been pushed out — everything’s taking longer now.”

Overall, Vega said, the pandemic has made it difficult for some small businesses to survive, and it’s made it more difficult for all of them to operate as they would like.

“If you look at Gateway City Arts … the pandemic just took the wind out of them, it took the momentum away; it’s like someone slammed the door in their face,” he said, adding quickly that there is interest in some of the components of that business, and, likewise, the phone is starting to ring, and more interest is being shown in Holyoke within the development community.

“There’s a couple of key projects where, if we can get them online, we can regain some of that momentum,” he told BusinessWest, noting that one such project is a large housing initiative downtown, a 92-unit project being undertaken by WinnDevelopment at the former Farr Alpaca mills that has been slowed by the always-complicated process of applying for and receiving historic tax credits.

Truelieve’s massive facility on Canal Street

Truelieve’s massive facility on Canal Street is ramping up for opening, and is projected to employ between 250 and 300 people when fully operational.

Meanwhile, some projects that were “percolating,” as Vega put it, before the pandemic and back-burnered to one extent or another are perhaps poised to be revisited and moved off the drawing board. These include some indoor agriculture that is not cannabis-related.

“The biggest price-point stuff that they’re talking about right now is lettuce and herbs,” he noted, “because there’s a quick-growing cycle; you can turn lettuce around in 30 days. So many restaurants want locally grown, hormone-free lettuce … there’s real potential there, and they can grow other vegetables, too. The price point is not as good as cannabis, but we’ve been talking about urban farming for a while, and we’re trying to create opportunities.”

 

On a Roll

Speaking of cannabis, while the pandemic has slowed some aspects of that sector, the industry is poised for additional growth, especially in the Paper City. The next important chapter looks to be written by Truelieve, which just received its occupancy permit. But there are many companies with plans in various stages of development.

Indeed, Vega said, there are two growing facilities now online and three dispensaries, but, overall, there are 40 host agreements and 40 provisional licenses at the state level.

As for Truelieve, its story touches on many of the opportunities and challenges that Holyoke and its old mills present, said Ricci, who started by noting that the company was mostly in Florida before last year, when it started expanding aggressively into other states, including a cultivation facility in Pennsylvania (added through acquisition) and dispensaries in Connecticut and other states.

“We really see 2021 as a big year for national expansion and being a true multi-state operator,” she explained, adding that, when looking for places in which to broaden the portfolio with new facilities, Truelieve focuses on cities and towns with large minority populations, communities that clearly need the jobs and everything else these ventures bring to the fore.

“Investing in a majority minority community was important to us,” she said. And upon concluding that the Bay State would be a good market to enter, Holyoke soon came onto its radar.

Holyoke at a glance

Year Incorporated: 1850
Population: 40,135
Area: 22.8 square miles
County: Hampden
Residential Tax Rate: $19.04
Commercial Tax Rate: $39.74
Median Household Income: $33,030
Family Household Income: $36,262
Type of government: Mayor, City Council
Largest Employers: Holyoke Medical Center; Holyoke Community College; ISO New England; Hazen Paper
* Latest information available

“We wanted to make sure, going in, that we were revitalizing and adding to the community and providing jobs; those kinds of things are important to us as a core value of the company,” she noted. “When we found this location in Holyoke, an area that had certainly seen better times, we thought, ‘we could invest here and provide the jobs.’”

As for the site in Holyoke, renovating the historic mill has been “a huge undertaking,” Ricci said, adding that the company entered into a sale/lease-back arrangement in order to secure the nearly $40 million required for this project (cannabis operations cannot obtain traditional bank financing, because the product is illegal on a federal level).

The actual buildout was an involved process that began more than a year ago and was slowed by state mandates that shut down many types of construction during the early months of the pandemic.

“The property is beautiful in its own way — there’s big, wide staircases and beautiful brickwork, but … it needed a lot of work,” she told BusinessWest. “It has been a challenge, and not just to set up different rooms, but to make sure everything was set up properly.”

Staffing is the next challenge to be overcome, Ricci said, adding that final inspections of the facility are expected sometime this quarter, with growing due to begin, as noted, in the second quarter.

Other facilities are in various stages of the pipeline, said Vega, who told BusinessWest that, while the city is welcoming all types of cannabis businesses, the larger cultivation facilities hold the most promise for jobs and overall impact on the city and the region, and he can envision the day when perhaps eight to 12 such ventures are operating in the city.

And, like his predecessor, he sees opportunities not merely for the growing and selling of cannabis, but also encouraging businesses that can provide needed products to those ventures.

“A lot of the products used by these businesses are made in Texas and Florida, the simple things like the planters — we should be making those here in Holyoke,” he noted. “I equate it to the ‘green’ industries. It’s great seeing solar fields — we have some in Holyoke — but we should be building solar panels in Western Mass., not just installing them.”

 

Bottom Line

Making progress in that area is just one of the ways Holyoke will be looking to regain the considerable amount of momentum it lost to the pandemic.

The city that had come so far in the past decade has the foundation that Vega mentioned in place. It has the building blocks, and it has a cannabis industry hungry for the open spaces, low energy prices, and other amenities that this city can provide.

The pandemic certainly slowed the pace of progress, but Vega and other officials are confident that the Paper City can soon regain its stride.

 

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

Coronavirus Features Special Coverage

Welcome Mat

At the practice she owns in Wilbraham, Excel Therapy & Conditioning, Dr. Sara Hulseberg is used to multiple physical therapists and coaches treating a host of patients each day, and for the center’s gym to be a hive of activity for members recovering from injury or improving their performance.

It’s quieter now, with a fraction of the usual patients in treatment rooms and in the gym at a time, and plenty of space between everyone.

That’s life in the capacity-limited world of doing business in the age COVID-19, but Hulseberg has rolled with the punches because … what choice does she have?

“With the way things are going for some of my friends who have closed down, I’m thrilled we’re still open,” she told BusinessWest. “I’ve had to take advantage of PPP loans and disaster-relief loans in order to make sure we can stay open, but we are still able to serve our patients and clients, and they’re excited to be coming in.”

That said, she added, it’s difficult to make a profit in survival mode, when the first priority is keeping the doors open and keeping employees paid.

“Those are small victories, and it’s a testament to the fact that we’re doing something right, because people feel safe coming in for group classes. In so many places, group classes have all but disappeared. I’ll take the small victories, and hopefully, we’ll find a way to combat this season and actually start making money again. The goal is to serve people, but it would be nice to make money while doing it.”

On the other hand, Nick Noblit, general manager of Yankee Mattress in Agawam, hasn’t struggled too badly with the past eight months of forced 25% capacity, because that capacity isn’t too onerous in a store with more floor space per customer than most.

“With the way things are going for some of my friends who have closed down, I’m thrilled we’re still open. I’ve had to take advantage of PPP loans and disaster-relief loans in order to make sure we can stay open, but we are still able to serve our patients and clients, and they’re excited to be coming in.”

He did feel the weight of the restrictions during the state’s tax-free holiday back in August — when the store typically does about two months of business in one weekend.

“At that point, we were still at minimum capacity, and we did have to have a greeter at the door monitoring how many people were in the store at one time. We had some folks waiting outside or in their cars, and we had water for them.”

Still, Noblit added, “it wasn’t a huge issue for us, to be honest. I can imagine a retail store that sees a lot more foot traffic, like a small grocery store or a small drugstore — they’re more affected.”

No matter to what extent each business is affected by capacity limits, they collectively cheered Gov. Charlie Baker’s raising of those limits from 25% to 40% on Feb. 8.

For many operations just trying to survive, every bit helps, especially when they’ve not only followed state mandates for keeping their workplaces safe, but in many ways gone above and beyond, said Nancy Creed, president of the Springfield Regional Chamber.

Nancy Creed says businesses have become adept at pivoting

Nancy Creed says businesses have become adept at pivoting and dealing with state mandates, but some, like restaurants, have been especially challenged economically.

“I have to give our business community a lot of credit because when sector-specific protocols came out, and everyone needed to sanitize all these things to keep people safe, they stepped up to the plate, and did that at a lot of expense to themselves. They deserve a lot of credit.

“I really think it’s a testament to our community that the business community said, ‘we want to be part of the solution and not part of the problem,’” she added. “I give them a lot of credit because they could have thrown in the towel if they wanted to.”

Raising capacity limits isn’t a cure-all to businesses’ struggles, of course, especially when the governor has moved in both directions in the past year, loosening restrictions only to tighten them again. But it’s a start.

 

Traffic Report

Businesses affected by the capacity change include restaurants, arcades and recreational businesses, driving and flight schools, gyms and health clubs, libraries, museums, retail stores, offices, places of worship, and movie theaters, to name a few. Workers and staff do not count toward the occupancy count for restaurants and close-contact personal services.

“Clearly, the restaurant industry has been the most impacted,” Creed said. “With other business sectors and office workers, it’s easier for them to reduce their capacity limits because they can work remotely. And small restaurants have struggled the most — when you have six or eight tables to begin with, it’s not worth doing in-person dining if you have to scale down to one or two tables.”

While some sectors are struggling more than others, she added, most members she’s heard from understand the reasons for the state’s mandates, even when they feel they’re too strict.

“I’m not hearing people complain as much; I think they’re now used to it and able to figure out what to do. I’m hearing a lot of stories of restaurants that are doing well with takeout, which helps make up for the low capacity, but it’s still not easy.”

The same goes for outdoor dining — like takeout, a feature many restaurants either launched or vastly expanded out of necessity, but plan to stick with post-pandemic.

“A lot of places will continue with that because they can expand their capacity with outdoor dining and had such success with it,” Creed said. “Customers are telling them, ‘we’ve always wanted outdoor dining, and we hope you keep it.’”

Yankee Mattress saw intriguing changes in customer behavior as well.

“The number of people who don’t want to stop in, we made up for over the phones,” Noblit said, noting that 2020 was a strong year for online sales as well. “Because of the shutdown, we were closed almost three months, and during that period of time, the only way you could get a mattress was online.”

Nick Noblit says he’s had to manage overflow lines rarely during the pandemic, most notably during tax-free weekend in August.

Even after stores were allowed to open later that spring, many customers continued to use the online option, which was a bit surprising, he added. “This is definitely an item, I believe, you should try before, so you know what’s comfortable for you. But it was a sign that our customers in this area took the pandemic very seriously and are taking precautions, and if that meant calling over the phone and making decisions based on our products and our name, that’s OK too.”

While companies have rolled with the capacity changes, and, as noted, honed new ways to do business in the long term, what they don’t like is sudden change, like what happened in Amherst and Hadley last week.

On Feb. 8 — the morning the 40% capacity change went into effect statewide — the Amherst Board of Health issued an emergency order that will continue the 25% limit in town, as well as an early-closing order, due to an outbreak of COVID-19 on the UMass Amherst campus that, at press time, had risen to 540 cases. The town of Hadley followed, also keeping capacity levels at 25%.

“This is not the direction that we, as a town, nor our businesses, want to go, but it is imperative that the town take decisive action immediately to address this increase in cases,” Amherst Town Manager Paul Bockelman said.

Claudia Pazmany, executive director of the Amherst Area Chamber of Commerce, which has members in both towns, said some businesses chose to close completely for two weeks, either for safety or because UMass students are quarantined to their rooms for the time being, cutting off a supply of customers and, in many cases, employees.

“They’re crushed. They were finally opening at 40%,” Pazmany said, adding that some businesses consider the move unfair, especially the ones that have a strong track record in safety, sanitization, and keeping exposure down over the past year.

“As a chamber, we’re so concerned for everyone’s safety, and a lot of businesses are choosing to close temporarily for the safety of their staff,” she added. “Personally, I don’t want to see anyone struggling, but we want to keep the safety of businesses and the community paramount. It’s tricky; it’s such a layered issue.”

Even as the extension order went down, Amherst Public Health Director Emma Dragon emphasized that “it is in the interest of the health of our entire community that we continue the restrictions that are currently in place. Never has it been more important to follow those key public-health protocols of wearing a mask, washing hands, and maintaining social distance.”

 

Doing Their Part

Mention those tips to many business owners, and they’ll say they’ve been insisting on all that — and much more — from the beginning. “The biggest thing, early on, was the uncertainty, not knowing how the surge was going to affect us,” said Dr. K. Francis Lee, owner of Advanced Vein Care Center in Springfield.

But there are lessons, he says, in how his office responded to the pandemic — and continue to respond — that apply to many places of business. The first was making sure employees understood safety protocols and the importance of keeping themselves out of harm’s way.

“We immediately talked to our staff about their concerns, and our staff came to understand that this pandemic was real, and something that affects everyone’s bottom line — not just the business bottom line, but each person’s bottom line,” he said. “Our people took this very seriously, and everyone knew they had to behave in a way that minimized exposure and minimized transmission, to not bring it into the office and spread it amongst each other.”

The second step was communicating with patients, who were screened twice by phone before appointments — with questions about possible COVID exposure — and then again on the day of the appointment. If there was any doubt, patients were rescheduled or moved to telehealth visits.

“This is something that hits close to home for each individual; at the end of the day, it’s all about their jobs and our business functioning, and people are responsible for doing their part.”

Finally, Lee put in physical safeguards in the office, from PPE — he collected so much, he was able to donate 1,000 facemasks to Baystate Health last April — to installing 22 HEPA-filter air purifiers, at least one for every room. “We have a 50-page COVID safety protocol,” he added.

For customers who visit Yankee Mattress, Noblit said, the store is completely sanitized multiple times a day, with attention paid to common touch points like door handles and surfaces, while customers are given a sanitary sheet — he calls it a ‘comfort test guard’ — to lay on as they try various mattresses. Plastic barriers also went up at counters to separate customers from staff.

“We wanted customers to feel safe and come in and do what they needed to do, and not have to worry about any issues with that,” he noted.

Making people feel confident to go about their business should be a community-wide effort, Lee suggested.

“It comes down to normalizing people’s behavior. That involves dealing with the COVID virus itself, which involves paying a lot of attention to science, and that’s what we did in the first place. We started inside people’s heads — we helped our people understand that this is real, and if people screw up, the whole office could shut down. But we never had to shut down — except for April and May, when everyone was shut down.

“Everyone understood this was their own job security at stake,” he continued. “Major workplaces have been shut down because of this. This is something that hits close to home for each individual; at the end of the day, it’s all about their jobs and our business functioning, and people are responsible for doing their part.”

For just about every customer-facing business, there’s a balance to strike between commerce and safety. Because Excel isn’t just a gym, but a full therapy practice, Hulseberg doesn’t have to maintain a laser focus on gym membership. “Our gym, at its core, is a love note to our patients,” she said. “We tend to run our gym differently than the big chain conglomerates, so the limits have hurt us less.”

Specifically, during the past several months of 25% capacity, she sold memberships only up to that level.

“I don’t want people buying memberships and then finding it too occupied or they don’t feel safe,” she said, adding that she implemented a timed appointment platform online, but members can also call last minute to check on availability. “It gives everyone peace of mind that we’re here for a massage or a group class, but everything has a cap on it, and we have safety requirements in mind.”

 

Winds of Change

In fact, even though the state has raised the capacity limit to 40%, Hulseberg is keeping it at 25% — for now.

“We’ve had a year’s experience with this,” she said. “We’re going to wait to implement any of their changes because they tend to roll back on us, and we end up spending time and money implementing new changes, just to have them roll back in a week or two.”

Besides, she said, she doesn’t want to be part of the problem that leads to a spike — although gyms and wellness practices, by and large, have not been identified as viral-spread locations. “We’re just happy we’re hanging on thus far and people are enthusiastic about what we’re doing, so we don’t have to close our doors.”

The worry that loosened restrictions can just as easily be re-tightened is common to most businesses, Pazmany said.

“The one guarantee this year is that whatever we’re dealing with today will change tomorrow,” she said, and that reality has worn on business owners, especially those in Amherst and Hadley, who can’t seem to catch a break right now — and who continue to remind customers that they’re still open for business.

“They are exhausted,” she added. “They’ve implemented safety protocols, they’ve kept everyone safe, they’re building confidence because they want everyone back. They’ve proven you can trust them, and trust is everything to a small business. So they were excited to expand to 40%. I can tell you, if this is prolonged, it could mean more closures. They need to get to 40%.”

It’s a reminder that all these numbers — case counts, capacity limits, profit-and-loss statements — add up to something significant for a regional business community that’s just trying to get back to normal … or, whatever capacity level passes for normal these days.

 

Joseph Bednar can be reached at [email protected]

Community Spotlight Special Coverage

Community Spotlight

By Mark Morris

Paul Bockelman said he’s worked with chamber and BID leaders

Paul Bockelman said he’s worked with chamber and BID leaders to address the urgent needs of the business community during the pandemic.

 

Epictetus, the Greek philosopher, first made the observation, “it’s not what happens to you, but how you react to it that matters.”

While Epictetus did not live in Amherst, town officials and business leaders there have certainly adopted the philosopher’s adage in their robust efforts to return the town to vitality in the face of a pandemic.

Last March, when COVID-19 began to affect life in communities everywhere, Amherst took a broader hit than most because UMass Amherst, Hampshire College, and Amherst College all shut down earlier than other area institutions.

Gabrielle Gould, executive director of the Amherst Business Improvement District (BID), said the suddenly empty campuses posed a shock to the system.

“We lost 40,000 people in a 48-hour period,” she recalled. “It was like turning off a light switch.”

With college closings and retail activity coming to a screeching halt, Amherst Town Manager Paul Bockelman said his town lost its two major industries because of the pandemic. Still, he noted, “despite all that, the town has been resilient, and we are prepared to emerge from the pandemic in a very strong way.”

Early on, Amherst quickly mobilized a COVID-19 response team as Bockelman and the department heads of the Police, Fire, Public Works, and other departments met daily to strategize, he explained. “We prioritized the health of our workforce because we wouldn’t be able to help residents if our fire, police, and DPW staff weren’t healthy.”

The next priority was to maintain continuity of government functions. Amherst migrated town staff to remote work and incorporated Zoom meetings to assure key bodies such as the Town Council and the School Committee could keep moving forward. Permit-granting committees soon followed.

“We prioritized the health of our workforce because we wouldn’t be able to help residents if our fire, police, and DPW staff weren’t healthy.”

As plans were coming together to allow outdoor dining, the Town Council passed a special bylaw to delegate simple zoning decisions to the building commissioner. This move sped up the permitting process and cut down on much of the bureaucratic red tape.

“For example, permits for serving alcohol outdoors or expanding the footprint of a restaurant could be done through one person instead of going through an often-lengthy permitting process,” Bockelman said.

To address the urgent needs of the local business community, he also met weekly with Gould and Claudia Pazmany, executive director of the Amherst Area Chamber of Commerce. The BID and chamber share office space on Pleasant Street, so Pazmany and Gould worked together to learn about the many grants available to local businesses impacted by COVID-19. The main goal was to help owners stay in business.

Claudia Pazmany

Claudia Pazmany says one of her most important roles has been helping business owners navigate the grant system.

“We knew that closing their doors would mean closing their doors forever,” Pazmany said. “That’s what we were trying to avoid.”

 

Granting a Reprieve

Before the pandemic, the chamber would host 56 events in a typical year. Pazmany said she quickly moved to digital events to keep everyone together. “We went from 56 events to 56,000 connections on Facebook and other social media.”

More importantly, in addition to helping local businesses apply for the federal Paycheck Protection Program (PPP), Gould and Pazmany have successfully secured grant programs at the state and federal level.

A number of Amherst businesses received grants through the state COVID-19 Small Business Grant Program, which provided a total of $668 million for Massachusetts businesses. Amherst also secured $140,000 in federal Community Development Block Grant funds for local businesses.

State Sen. Joan Comerford helped the Chamber and BID to fund the recently formed Relief and Resiliency Microgrant Program. Originally designed to provide $500 microgrants, Pazmany said they were able to secure matching dollars, so $1,000 grants will soon be awarded to 18 of Amherst’s small-business owners in the first round of the program.

“The microgrant money will help defray some costs and allow people to keep going,” she said. “Many of these business owners are not even paying themselves; they just want to pay their bills.”

One of the more important roles Pazmany and Gould have taken on involves helping business owners navigate the grant system. Whether it’s identifying eligible funding, helping to fill out forms, or solving technical issues, Pazmany said they are not limiting their support to just chamber members. “Right now, it makes no difference if you are a chamber member or not. If you need help and you cross our threshold, we will help you.”

While outdoor dining and takeout have enabled restaurants to keep their doors open, the BID launched an effort to do more, buying meals from local restaurants and giving them to families in need. The effort began two months ago with the moniker December Dinner Delights and recently received funding to continue through April. Gould sees this as a win-win.

“We pay the restaurants $1,500 twice a week to help them sustain business, and we provide meals for families in our community,” she noted.

Another effort to support local business involves a gift-card program run by the chamber. Launched at the beginning of the holiday season, the gift cards can be redeemed at more than two dozen local businesses, from restaurants to a cat groomer. Pazmany said she has had to reorder cards to keep up with demand. “It works because you are able to give someone a gift and, at the same time, support a small business; it’s the best type of reinvestment in our community.”

As for town-run programs, last spring, municipal leaders had to figure out what to do about the farmers’ market it runs every Saturday from April through November. In the past, it was held in a cramped parking lot that would not conform to social-distancing protocols. Because the town common had no activities scheduled, the farmers’ market set up there — and had its most successful year ever.

“Right now, it makes no difference if you are a chamber member or not. If you need help and you cross our threshold, we will help you.”

“Our town common is a bucolic setting, and people who were cooped up all week could safely come and buy things,” Bockelman said. The manager of the farmers’ market reported the average sales week in 2020 equaled the best sales week in 2019, and the booths sold out of their products every week.

The farmers’ market was a highly visible way to revitalize interest in Amherst, as are continuing “quality-of-life developments,” as Bockelman called them, such as the newly opened Groff Park and the building of a new playground at Kendrick Park.

But smaller acts, like making picnic tables available in parks and other public places, were popular as well, he added. “As soon as we put out the tables, people were immediately using them. It was awesome.”

 

Forward Thinking

Looking to the future, Amherst is making decisions on four major capital projects slated for construction in 2022. On the drawing board are a new elementary school, a new library, a new Public Works facility, and a new fire station.

“We are trying to incorporate these projects into our ongoing budget so the taxpayer does not have to take on too much of a burden,” Bockelman said.

The desirability of Amherst as a place to live keeps housing prices high, which he calls a two-edged sword because it hurts the town’s ability to build a diverse socioeconomic community.

“People value diversity in Amherst,” he said. Still, he added, “it’s much more diverse than most people realize, especially our school district.”

To deepen that diverse profile, Amherst is looking to invest in property to develop more affordable housing. Bockelman pointed to a recently approved development on Northampton Road and a potential land purchase on Belchertown Road as additional projects in the works. “The town is willing to make the investment to develop and retain affordable-housing units in Amherst.”

To better address diversity in business, the chamber makes available an open-source document for proprietors who want to identify their business as being run by a woman, minority, or LGBTQ individual.

Pazmany said it’s simply good for business, noting that “we are getting steady requests from people who want to do business with various self-identifying businesses.”

Amherst at a Glance

Year Incorporated: 1759
Population: 39,482
Area: 27.7 square miles
County: Hampshire
Residential Tax Rate: $21.82
Commercial Tax Rate: $21.82
Median Household Income: $48,059
Median Family Income: $96,005
Type of Government: Town Council, Town Manager
Largest Employers: UMass Amherst; Amherst College; Hampshire College
* Latest information available

One element in the town’s strategy emphasizes Amherst’s potential as a tourist destination. Several national news articles have suggested that this decade may become a second “roaring 20s” with a renewed emphasis on cultural attractions. If that’s so, Pazmany pointed out, Amherst has plenty to offer, such as Museums10, a collaborative of 10 area museums, of which seven are located in town. Together, the museums cover various aspects of history, art, literature, and the natural world.

“In a normal year, Museums10 will bring more than a half-million people to the area,” she said. “The Emily Dickinson Poetry Festival itself is a global event.”

For the more immediate future, the plan is to have outdoor dining up and running by April 1. The BID was able to supply enough table umbrellas and heaters during the summer to boost last year’s effort. Because there are so many barriers in place to ensure safe outdoor dining, the BID also paid 35 artists to turn the plain concrete into a medium to express themselves.

“The barriers became nice displays of public art, and they give downtown a bit of an art-walk feel,” Gould said.

Simple touches like the artwork and adding planters around town generated positive comments from visitors and business owners alike. Pazmany appreciated the boost of confidence. “In this next phase, we just want our businesses to be up and running so they can take a paycheck and start to rehire people.”

Most Amherst leaders, in fact, look to the coming year with great anticipation. Bockelman noted that the town has several fundamental strengths, including the university and colleges. Pazmany added that UMass has already reported an increase in enrollment for the coming fall.

Gould admits that pushing forward on grants and other relief efforts helped Amherst through the worst of the pandemic. “Despite how hard everyone was hit, we’ve created a resiliency that kept our businesses here.”

Bockelman agreed. “Everyone’s efforts worked because they were sequential and were patiently done. We just kept moving forward.”

Epictetus would be proud.

Features Special Coverage

Entering a Partnership?

 By Brenden Cawley and Gabriel Jacobson 

 

The COVID-19 pandemic has caused several partnerships local to Western Mass. to either consider or actually effect a change in ownership. When navigating the complexities of these changes in ownership, partnership basis is a vital component.

For tax advisors and taxpayers alike, basis would be better as a four-letter word. However, understanding the basics of cost basis can prevent future headaches.

 

Understanding the Basics of Basis

It stands to reason that the cash spent or provided to acquire an asset would be the cost (basis) of that asset. However, when analyzing partnerships, understand the concepts of ‘inside’ and ‘outside’ basis. The difference is a shift in perspective. The outside basis is established when the partner joins or forms the partnership through the contribution of cash (or property, which adds additional complexity). The partnership then uses that cash to purchase assets.

The cash outlay to acquire those assets establishes the total inside basis of the partnership. Based on each partner’s ownership, a share of the inside basis of the individual assets is assigned accordingly. This inside basis does not fluctuate with changes in market value of the assets. When a tax year closes, the partners each receive a Schedule K-1 and adjust their outside basis by the income, expense, gain, or loss disclosed on the Schedule K-1.

Brenden Cawley

Brenden Cawley

“For tax advisors and taxpayers alike, basis would be better as a four-letter word. However, understanding the basics of cost basis can prevent future headaches.”

Over the life of the partnership, cash or property will be distributed to the partners, which will decrease their outside basis. The inside basis of the partnership will similarly be reduced as the cost of assets is removed from the books through sale or distribution. When the partnership is in need, the partners may contribute additional cash or property. Additional contributions have the same positive impact on outside basis as the initial contribution that formed the partnership or acquired an interest.

As time goes by, differences can arise between the inside and outside basis of the partner(s). As the inside and outside basis of the partnership fall out of alignment, the partners can experience negative tax consequences. Each taxpayer is responsible for maintaining their own outside basis, so consult your tax advisor if questions arise. Through a Section 754 election, the partnership has an opportunity to avoid these consequences.

Like anything worthwhile, this election takes work. It is perhaps especially laborious if the partner or partnership have not been actively tracking the inside and outside basis disparity. The partners’ Schedule K-1s could offer a lifeline. Prior to 2020, each partner’s capital account in item L could be prepared on a book, GAAP, Section 704(b), or tax basis. It is possible that the partner’s capital account prepared using book, GAAP, or Section 704(b) is a reasonable approximation for the inside basis of the partner.

This is a highly simplified approach that needs to be vetted with the partnership’s tax advisor. Starting in 2020, the IRS has mandated that Item L of Schedule K-1 must be prepared on a tax basis. The partner’s tax capital account is a good starting point for both outside and inside tax basis. Again, this simplified assumption needs to be discussed with a tax advisor. Please note that tax capital reported on the Schedule K-1 is not equivalent to outside tax basis. Instead, outside tax basis considers liabilities of the partnership for which the partner is individually responsible and partner-specific adjustments.

 

Everyday Example

In year one, Ann and Bob purchase a building for $200,000 and split the cost evenly, giving them each 50% ownership in ABC Partnership. Initially, they each had outside basis equal to their inside basis of $100,000. In year two, as a result of COVID-19, Bob wants to exit the partnership. The building has appreciated in value to $300,000, so he sells his interest in ABC Partnership to Carl for $150,000. Bob will recognize a $50,000 gain in year two as a result of the excess cash received compared to his cost basis.

First, let’s imagine the partnership does not make a 754 election at this point. Carl steps into Bob’s inside basis of $100,000. However, his outside basis equals the total amount he paid, or $150,000. In year three, Ann and Carl decide to sell the building (for simplicity’s sake, let’s assume no depreciation has been expensed), which is still valued at $300,000 and therefore results in a gain of $100,000. Both Ann and Carl receive Schedule K-1s with a $50,000 gain for the year because they both had an inside basis of $100,000 prior to the sale.

Gabriel Jacobson

Gabriel Jacobson

“Partnerships may be relatively easy to form, but the tax implications can be very complex.”

After recording the gain, their inside basis increases to $150,000. Ann’s inside and outside basis remain aligned, but Carl’s basis disparity persists as the $50,000 of gain impacts his inside and outside basis in the same manner. In year four, Carl and Ann decide to dissolve the partnership. At this point, the $300,000 cash they received from the sale of the building is distributed to both partners evenly. Ann receives $150,000 in cash, which equals her outside basis. For this reason, she recognizes no gain or loss on the dissolution of the partnership.

Alternatively, Carl recognizes a $50,000 loss outside of the partnership since his total outside basis is $200,000. At this point Carl is kicking himself because he paid taxes on a $50,000 gain in year three only to recognize a loss of $50,000 one year later. If Carl does not have any capital gains in year four, he can only utilize $3,000 of the capital losses on his tax return. The remaining losses are carried forward indefinitely.

Now let’s imagine the partnership made the 754 election when Carl purchased his 50% interest in year two. At that time, his inside basis would have been increased by $50,000 to match his outside basis. The partnership would have adjusted Carl’s inside basis in the building to $150,000, matching his outside basis. Then in year three, when Ann and Carl sell the building, Carl would not recognize any gain because his inside basis matches his share of the sales proceeds ($150,0000).

In year four, when the partnership dissolved, Carl would not recognize a loss on the distribution of cash from the partnership because his portion of the partnership’s cash balance ($150,000) equals his outside basis ($150,000). Carl avoided the timing issue regarding any taxable gain on the building sale and any loss on dissolution by making the 754 election.

 

On an Income-tax Return

If Carl and Ann decided to hold onto the building instead of selling in year three, Carl could deduct from his Schedule K-1 the basis adjustments related to the Section 754 election. The total Section 754 adjustment of $50,000 is reduced to zero over time using the same mechanics as the depreciation on the building. The 754 adjustment reduces both Carl’s inside and outside basis equally. The benefit is that he will receive deductions on line 13 of his K-1 against income on his tax return each year until the $50,000 is fully deducted.

Partnerships may be relatively easy to form, but the tax implications can be very complex. Section 754 is important for a partner purchasing an interest and for existing partners looking to secure a new partner to help their business. Accurate tracking of inside and outside basis is of the utmost importance to reduce negative tax consequences down the line.

 

Brenden Cawley is a senior associate at the Holyoke-based accounting firm Meyers Brothers Kalicka P.C., and Gabriel Jacobson is an associate with the firm; (413) 536-8510.

Community Spotlight

Community Spotlight

By Mark Morris

Jennifer Nacht

Jennifer Nacht says a heavy focus on outdoor experiences last year helped Lenox weather the economic impact of the pandemic.

For the past year, the town of Lenox showed what happens when uncertainty meets a can-do attitude.

Despite the formidable challenges of COVID-19, Town Manager Christopher Ketchen said, Lenox residents and businesses have been remarkably resilient.

“Throughout the pandemic, our residents demonstrated how much they love our town,” Ketchen said. “They make their homes here, and our businesses are invested in their customers and their community.”

What began as a normal year of planning events at the Lenox Chamber of Commerce was suddenly derailed in March. Once they realized the pandemic was going to last more than a couple months, Executive Director Jennifer Nacht said, chamber members and town officials quickly met to put together a plan to salvage at least some activity for Lenox.

“We went through each season and developed a general outline of things we could do,” Nacht said. “Even though we did not know what the year was going to look like, we were able to turn around some great activities.”

Like many towns, Lenox encouraged restaurants to offer tented outdoor dining and allowed them to expand outdoor seating into public parking spaces. The town also added covered dining terraces in public spaces around town.

“The select board lifted alcohol restrictions so people could bring a bottle of wine to Lilac Park, for example, where we had set up a dining terrace,” Nacht said.

“You couldn’t get a parking place at the trailheads in town. Even obscure trailheads that were once known only to a handful of locals were crowded.”

Some developments last spring were rough. In May, the town learned that, due to COVID-19 concerns, Tanglewood had canceled its 2020 season. For some perspective on the importance of Lenox’s largest summer attraction, a Williams College study in 2017 estimated the economic impact of Tanglewood to Berkshire County and Western Mass. at nearly $103 million annually.

Because they didn’t know what to expect when Tanglewood called off its season, Nacht said everyone concentrated their efforts on making Lenox a welcome and inviting place. Outdoor dining was a first step that helped to establish a more vibrant atmosphere, and it inspired further activities.

For example, the Lenox Cultural District and the chamber organized Lenox Loves Music, an initiative that featured live music performed at the Church Street Dining Terrace for seven straight Sundays in August and September. It was a hit.

“Because we were able to turn on a dime and get everything set up, we were able to make the outside experience fun,” Nacht said. “As a result, we were better able to weather the financial impact of the pandemic.”

 

Hit the Road

If entry points to walking and biking trails are any indication, Ketchen said the pandemic helped many people discover the town’s outdoor attractions for the first time. “You couldn’t get a parking place at the trailheads in town. Even obscure trailheads that were once known only to a handful of locals were crowded.”

For more than 40 years, Lenox has held Apple Squeeze, a harvest celebration that takes over much of the downtown area with 150 food and craft vendors. The event was canceled for 2020 because of concerns that, even with restrictions, too many people would gather, leading to unsafe crowd sizes.

Lenox Loves Music

Lenox Loves Music was a hit during a time when live music was in short supply.

As an alternative, the chamber and American Arts Marketing developed the Lenox Art Walk and scheduled it for the late-September weekend when the Apple Squeeze would have taken place. Forty artists set up in different areas around town in ‘artist villages,’ which were arranged so no more than 50 people could be in one area at a time. Foot-traffic flow was also designed to keep people moving through the exhibits.

Nacht said the Art Walk received great feedback, and the artists involved loved exhibiting their work. The event also led to phone calls from event organizers from several Eastern Mass. towns who wanted to know how to stage a similar event.

The old adage about necessity being the mother of invention definitely has proven true for Lenox. “We just tried some different things that we probably would have never attempted, or done so quickly, had it not been for the pandemic,” Nacht said.

In the beginning of the summer, traffic in town was about half of what it would be during a normal season. As the weather became warmer and travel restrictions eased around the state, both traffic and business picked up.

“We began seeing more day trippers, many from the Boston area who had never been out our way,” Nacht said, adding that good weather in the summer and fall extended the outdoor season nearly to Thanksgiving.

While lodging in the area was restricted by the number of rooms that could be offered, she noted, from September through November, inn and hotel rooms were booked to the capacity they were allowed.

As the owner of the Scoop, a Lenox ice-cream store, Nacht was one of many business owners forced to move customer interactions outdoors. She found a fun way to adjust.

“We did it sort of Cape Cod style, where people order at one window and pick up their ice cream at a second window,” she explained, adding that, while 2020 was not as successful as previous years, the Scoop still saw steady business throughout its season. Even non-food stores, inspired by all the outdoor activity, set up tents in front of their shops to add to the vitality.

In a normal year, Lenox Winterland is a tradition to kick off the holiday season that features a tree-lighting ceremony and Santa Claus meeting with children. In this very-not-normal year, Winterland was forced to cancel.

Instead of losing their holiday spirit, however, the Cultural District and chamber presented a creative alternative. Local businesses and artists teamed up to decorate 30 Christmas trees, which were displayed in a tree walk through town. Nacht said the inaugural Holiday Tree Walk was so well-received, plans are in the works to expand and make it an annual event.

“Despite the obstacles of COVID, we had a decent tourism business,” she said. “We’ll continue to offer more fun events to keep the vibrancy of the town going and improving.”

 

Passing the Test

Lenox has always been proud of its cultural amenities, such as Tanglewood, Edith Wharton’s house at the Mount, Shakespeare and Co., and others. As those were scaled back, Ketchen said, the town’s outdoor amenities gained exposure they might not have otherwise.

“Once we are allowed to enjoy our cultural institutions to their fullest again, people will also have more awareness of all the recreational opportunities Lenox has,” he told BusinessWest. “That’s a big positive for us as we look to the future.”

While Nacht hopes to see Tanglewood up and running, at least in some form, in 2021, she admits the past year was quite the learning experience. “We are so dependent on Tanglewood, it was an interesting test to see what we could do without Tanglewood there.”

Despite the challenges put on municipal budgets, Ketchen said Lenox was able to pursue several modest infrastructure projects in 2020, such as maintaining roads and public-utility infrastructure. “When folks are ready to come to Lenox for the recreation and the culture, the public utilities and infrastructure will be waiting for them.”

“We began seeing more day trippers, many from the Boston area who had never been out our way.”

In short, Lenox is not only weathering the COVID-19 storm, it’s finding ways to come out stronger on the other side. Indeed, when this community, which depends on cultural tourism, was challenged to find creative solutions to stay afloat, it answered the call. Nacht credited Lenox businesses for making quick and significant adjustments in their operations.

“It was really inspiring to see our businesses make the best out of a not-so-great situation,” she said. “It says a lot about their commitment to our town.”

Undaunted by the near future, Nacht noted several businesses are planning for April openings. And she looks forward to the new year knowing that Lenox can present all the outdoor events that worked well in 2020.

“With knowledge, you just learn to do things better, and we learned a lot last year,” she added. “Once the tulips come out, that’s when we start to see everything come alive again.”

Coronavirus Features Special Coverage

Impact Statements

Jeanette Wilburn (left) and Stephanie Nascimento

Jeanette Wilburn (left) and Stephanie Nascimento say the pandemic has increased people’s anxiety — and the need for self-care.

Stephanie Nascimento and Jeanette Wilburn have long explored the connections between physical and emotional health at their decade-old practice, Be Vital Wellness. These days, they say, with so much anxiety gripping Americans, it’s more critical than ever to understand those connections.

“Obviously, mental illness has always been a crisis, but it’s at an all-time high now,” Nascimento said. “We spend a lot of time digging with our clients. They don’t always walk in the door and say, ‘I’m depressed.’”

In fact, the Hadley-based business began as a weight-loss and nutrition enterprise, and that’s still a major part of it. But Wilburn said it’s gratifying when clients begin to understand how their choices and circumstances affect them in ways they’ve never considered.

“Sometimes people don’t even know they’re depressed; they don’t know they’re anxious,” she explained. “They just know that they can’t fall asleep, or they can’t stay asleep, or they wake up at 3 o’clock in the morning. A lot of people call it ‘busy brain,’ but they don’t realize that’s actually anxiety. I liken it to a hamster on a wheel, and the hamster is going way too fast. You need to either slow down the wheel or get the hamster off the wheel altogether.”

The problem is, almost a year of living with the COVID-19 pandemic, and its impacts on physical and mental health, relationships, and finances, has only cranked the wheel faster, and too many people are coping with unhealthy habits like overeating and alcohol abuse.

“ I liken it to a hamster on a wheel, and the hamster is going way too fast. You need to either slow down the wheel or get the hamster off the wheel altogether.”

“Those bad habits were there before COVID — then the pandemic arrived,” Nascimento said. “There’s so much fear, not to mention people’s whole lives are changing. Kids are home from school, parents are trying to be teachers while also working and managing Zoom calls … there’s been a lot of stress on families. We’ve had clients who were managing well, but are now struggling to maintain good habits.”

Kristy Navarro, clinical supervisor for BestLife Emotional Health & Wellness Center, a program of MHA, said the causes of increased anxiety are easy to understand.

“A lot of it is the stress people are going through financially. People have had to close down businesses they owned and lost all their income. So that produces this feeling of anxiety — ‘where am I going to get the money to pay my bills? How am I going to stay in my house? I wasn’t in debt, and now I am, so how am I going to do this?’”

That anxiety can manifest in different ways, she added.

Alane Burgess (left) and Kristy Navarro

Alane Burgess (left) and Kristy Navarro say the first step to dealing with anxiety and mental-health stresses is talking about them.

“It can be physical — the shaking, the heart pounding, sweating. It can look like avoidance — maybe not checking your mail or not going outside. It’s not just being worried, but genuine fear. Fear and feeling worried are two different things.”

Dr. Mark Kenton says healthcare workers have been feeling anxious, to varying degrees, since the start of the pandemic.

“The anxiety, depression, and worry all got heightened,” he said, especially in the early days last winter, when so little was known about coronavirus, and news media reported on soaring death counts in places like New York City. “It made you think, ‘if I get this, am I going to die?’ You think of the worst-case scenario. Healthcare providers had that anxiety, and a lot of us had to find ways to get through.”

These days, as the pandemic wears on, Kenton, an emergency medicine physician at Mercy Medical Center, still worries about such issues — and not just for providers.

“I’m definitely worried about healthcare providers getting exhausted or getting sick, but also the mental health of patients, and especially the mental health of children who have to do this remote schooling for a year and a half. What is the actual impact on children going forward?”

It’s a question being asked across the U.S., and it has no one-size-fits-all answer. But the overwhelming sentiment BusinessWest heard from health and wellness experts in the region is this: help is available. Don’t be afraid to ask for it.

 

Take Control — but Know When to Let Go

Navarro said much of the anxiety and depression related to the pandemic has to do with isolation — and not just physical isolation.

“We’re asking people to physically isolate,” Navarro said. “What’s more concerning is when we emotionally disconnect from people — the inability to reach out, or to get the support we need when we feel we need it.”

Kenton agreed. “Our lives have been completely turned upside-down. We’re supposed to be social beings; that’s part of our underlying nature. Now everyone has lost that element. We have elderly people who have been completely isolated and haven’t seen loved ones since March.”

It doesn’t help that many things people like to do to escape from their troubles — and get some exercise — have been eliminated or limited.

Dr. Mark Kenton

Dr. Mark Kenton

“Our lives have been completely turned upside-down. We’re supposed to be social beings; that’s part of our underlying nature. Now everyone has lost that element.”

“They gain weight, they don’t eat well, they get depressed or drink more alcohol. It’s a vicious cycle,” he said. “We already have difficult winters in the Northeast, between the snow and the cold; we can’t do much of anything, and now we’re completely isolated at home. We can’t even take a trip to Florida with the family for a week to get away from the cold weather.”

That said, many activities are still possible, Navarro said.

“What is it you like to do? If we’re able to continue to do those things that we enjoy doing, we can feel better,” she explained. “And also, what in this situation can you control? We know that COVID is out of our control. So, what is it that you can control in that context? Maybe the only thing you can control is wearing your mask outside and not being around other people. So control that piece, and have ownership over what you are able to do.”

Alane Burgess, clinic director at BestLife, tells clients to take some time every single day — even if it’s just 10 minutes, although 30 minutes would be better — to “relax and rejuvenate.”

“That means, allow yourself to take that step back from everything that’s going on — all the fears, the worries, and the anxieties — and do something that makes you feel really good about yourself. Maybe it’s a hobby or activity, or doing a teleconference with a family member or a loved one or somebody who is really going to make you feel good about yourself. That way, you can focus on the good feelings that some people are losing in the midst of the isolation and all the things in our lives that we can’t control.”

Wilburn promotes mindfulness, meditation, healthy eating, and a host of other ways in which people have the power to change their health and mindset — and, again, she’s a believer in the two being intertwined holistically. At a time when the world presents so many reasons to be anxious — and, if you read the news these days, it’s not just COVID-19 — she wants to teach people self-care.

“We don’t know about that as Americans,” Nascimento added. “Or we think it’s selfish. ‘Push harder, push harder, don’t take vacations.’ We’re teaching people you can work hard, but your play should be self-care — taking a long walk, getting body work done, taking five minutes to meditate.”

It’s important, Wilburn noted, because, even in better times, Americans too often live in fight-or-flight mode.

“Our nervous systems think we’re running away from a tiger, which means we’re not properly digesting our food, our heart rate doesn’t come down, and we’re not sleeping as well, because if you’re running away from a tiger, why would you be sleeping?”

She and Nascimento say people need to be educated on why it’s important to step back and take time for their own needs — but they also often need permission, especially men, who are quicker than women to dismiss the need for self-care. They’ll find that encouragement at Be Vital Wellness.

“They think, ‘I’m tough; I just need to tough this out,’” Wilburn said. “Women are better at it, but everyone needs permission.”

 

Don’t Ignore the Signs

While mental-health concerns have certainly been at the forefront lately, Kenton said it’s also important not to neglect physical health, especially when symptoms of serious problems arise.

“Looking back to March and April, we shut everything down and told patients that, unless they absolutely need to be in the Emergency Department, do not come,” he explained, noting that many patients use the ER as primary care because they lack a primary-care provider or health insurance. “We saw the wave in New York, then Boston, and we didn’t know what we were in for, so the message was, don’t come to the ER unless you’re sick.”

It worked — Mercy’s ER traffic fell from a daily average of around 225 to 110, with a low point of 72. And that caused concerns of a different kind.

“Before long, we were all wondering, where did the appendicitis go? Where did the heart attacks go? We started to worry that patients with symptoms were staying home, or coming in after four days of symptoms, and by then it’s really bad.”

By summer, ER volumes gradually rose again, but many patients still feared coming to the hospital — and still do — despite the safety measures in place to separate COVID-19 patients from those who have not been exposed. With elective surgeries being curtailed again and patients having trouble seeing their primary-care doctors in person — though telehealth is better than nothing — “there are a lot of challenges for patients trying to navigate the healthcare system right now,” Kenton said.

The challenges for kids and teenagers, on the other hand, have resided almost completely in the realm of mental and emotional health.

“We’re definitely seeing the impact on children,” Navarro said. “I’ve heard a lot of parents say to me, ‘my child is failing all their classes. They can’t concentrate.’ I’ve had children I work with talk about how there’s just too much, there’s not a break, there’s not a way to leave a home that maybe is having some turmoil — not being able to get a break from all that. They’re not going to school and having any socialization with friends. Yes, they see them through Zoom, but they’re not able to have those close conversations, the play time, those moments of friendship.”

One key, she said, is to keep kids connected, somehow, to other people, even if it’s just family, and don’t let them suffer in silence.

“I tell parents all the time, ‘talk to them. Have those conversations. Talk to them about what is going on, how they can cope with their feelings in an age-appropriate way.’”

For anyone struggling in any way — adults or children — it can be helpful to seek professional help. “Even with the smallest amount of anxiety, it does not hurt to talk to someone, whether it’s a professional or a friend or family member you trust,” Navarro said. “To talk about our feelings helps us gain control over them. Just talk to someone.”

MHA launched a program a couple of years ago called “Start Talking,” which promoted the importance of starting a conversation on mental-health concerns.

“Sometimes, when we just start talking to someone we trust — or, for some people, it may be a stranger they feel most comfortable talking to — when we start having a dialogue, we see how many things start coming up,” Burgess said, adding that holding these feelings in often causes them to fester and build, compounding anxiety and depression in the long run.

“People ask every day, ‘how are you?’” Navarro noted. “But when do you actually have the opportunity to tell someone how you really are? What do we usually say? ‘I’m good. Things are fine.’ But are they really?”

Most people have no problem talking about their physical pain — an aching back, for example — but feel stigmatized when it comes to discussing their emotional wellness, Burgess added. But if there was ever a time to push past that barrier, the era of COVID-19 is it.

“Every single person in the world is being impacted by this on some level. This is something we’re all collaboratively experiencing and going through — at different degrees for different people, of course. So, how do we manage a continuation of something many of us thought would end in April?”

Talking about it, she said, is a good place to begin.

With social-distancing regulations in place, telehealth has been a tremendous help for providers and clients in her field, she added, as it has helped clients continue critical conversations. One patient even kept an appointment while on vacation in Aruba because she didn’t want to miss one.

“I’m grateful for the ability to provide services this way,” Navarro added. “If we weren’t, it would be a very difficult world.”

 

Journey to Wellness

Many clients at Be Vital Wellness are folks who deal with crisis every day — firefighters, police officers, doctors, nurses, EMTs — and who have grappled with their own rising anxiety and depression during an unprecedented year.

“PTSD is definitely a thing for anyone in crisis care. They often don’t realize there are other options besides pharmaceuticals, and that they can increase their quality of life, decrease their stress, and decrease their anxiety,” Wilburn said, although she and Nascimento encourage clients to see their primary-care doctors regularly too, as part of a network of treatment.

“I feel like, in America, most people have depression or anxiety or both, and COVID has only upped the ante on all those things,” Wilburn noted. “People who previously didn’t struggle with those things are struggling with those things. I just saw a woman this morning — she’s dealing with severe depression, and we’re talking about getting into therapy.

“We’re not a one-stop shop,” she added. “People come to us and say, ‘help me with my weight loss,’ but then they realize there are a lot of other things they can get support around, and it becomes truly wellness.”

In this unsettled time, that’s a goal worth striving for — and talking about.

 

Joseph Bednar can be reached at [email protected]

 

Community Spotlight Special Coverage

Community Spotlight

By Mark Morris

For MJ Adams, 2020 felt like someone had pushed a ‘pause’ button.

Adams, director of Community and Economic Development for the city of Greenfield, had taken part in a dynamic public forum early in the year titled “A Deliberate Downtown” that focused on revitalization plans for Greenfield.

Then the pandemic hit. And when it became clear the pause would last for more than a few weeks, she and her staff shifted their focus.

“We knew there was going to be an immediate cash-flow problem for local businesses, so we moved quickly to develop a small-business assistance program to provide micro-enterprise grants,” Adams said.

Working with other Franklin County towns, Greenfield pooled its available block-grant funds with those from Montague, Shelburne, and Buckland.

“Because small businesses are such a critical piece of the economy in Greenfield and Franklin County, we worked together to quickly design a program that didn’t exist before,” Adams said. “The micro-enterprise grants provided a cash source for small businesses until they were able to access funds from the federal Paycheck Protection Program.”

On the public-health side of the pandemic, Mayor Roxann Wedegartner credited the emergency-management team in Greenfield for their early and quick action.

“We were one of the first communities in the state to attempt to manage the public-health side of COVID-19 from the get-go,” she said, adding that her team also set up contact tracing early in the pandemic. The John Zon Community Center has served as an emergency-command area for COVID testing for Greenfield and surrounding communities. First responders are now able to receive COVID-19 vaccinations at the facility.

Greenfield Mayor Roxann Wedegartner

Greenfield Mayor Roxann Wedegartner says major projects along Main Street speak to a sense of momentum despite pandemic-related obstacles.

Like most communities, Wedegartner admits Greenfield has taken an economic hit due to the pandemic. She pointed to the micro-enterprise grants as an important early step that prevented a tough situation from becoming worse. Inaugurated to her first term as mayor a year ago, Wedegartner said finding herself in emergency public-health and safety meetings a month later was quite a shock.

“While I’m pleased that we started planning early for the pandemic, I have to say it’s not where I thought I would be in my first year in office.”

 

Great Outdoors

Wedegartner is not letting COVID-19 challenges dampen the many good things happening in Greenfield. She pointed with pride to the approval of a new, $20 million library and the ongoing construction of a new, $17 million fire station. Groundbreaking at the library is scheduled for April 21, while firefighters are expected to move into their new facility in July. Once complete, Adams noted that both ends of Main Street will be anchored with major public investments.

“It’s a clear statement that the town is very much committed to public safety, as well as culture and education,” she said.

These qualities, and a resilient business community, are why Greenfield is poised to bounce back quickly, according to Diana Szynal, executive director of the Franklin County Chamber of Commerce. She specifically mentioned the area’s many outdoor recreation options as assets that contribute to the local economy.

“Because small businesses are such a critical piece of the economy in Greenfield and Franklin County, we worked together to quickly design a program that didn’t exist before.”

“For spring and summer, we will put a strong focus on outdoor recreation because it’s a safe and healthy thing to do,” Szynal said. “You don’t have to travel far, and you can access some of the best river rapids around. We have ski areas and great golf courses — basically four seasons of outdoor activities.”

Before the pandemic, Adams and her staff were working with local restaurants to consider outdoor dining. Of course, COVID-19 accelerated those plans as moving outside was one way eateries could generate at least some revenue. With restaurants scrambled to figure out ad hoc ways to set up outside, Adams said now is the time to see how to make this concept work better for everyone for the long haul.

“We’re looking at Court Square to see if we can shut down the street that runs in front of City Hall to make that a more permanent outdoor dining space,” she said, admitting there are traffic-impact and access issues that need to be considered before the street can be closed. “We’ve been wanting to do this for some time and even have conceptual drawings to see how that space would look.”

Szynal emphasized that restaurants are one key to bringing more people to downtown Greenfield, so she hopes to draw more places to eat. While outdoor dining presents challenges, she believes the net result is positive. “Dining outside helps the downtown become a little more pedestrian. It’s a different vibe, a good vibe.”

Greenfield at a Glance

Year Incorporated: 1753
Population: 17,456
Area: 21.9 square miles
County: Franklin
Residential Tax Rate: $23.55
Commercial Tax Rate: $23.55
Median Household Income: $33,110
Median Family Income: $46,412
Type of Government: Mayor, City Council
Largest Employers: Baystate Franklin Medical Center, Greenfield Community College, the Sandri Companies
* Latest information available

Wedegartner promotes the fact that Greenfield has a walkable downtown and plenty of housing within a short walk of it. A former Realtor in Franklin County, she still has contacts in real estate who tell her that houses in Greenfield barely hit the market before they are sold.

Adams said the city is poised to take advantage of welcoming new people to the area. “As we start to emerge from the pandemic, there’s a discussion about how much people miss the feeling of community and how to re-establish that. At the same time, there are people who want to live closer to nature and further away from the heavily populated cities. Greenfield can satisfy both of those concerns.”

Because the pandemic has resulted in so many people working from home, Szynal predicts a shift in where people choose to live.

Wedegartner concurred, citing the example of a couple who recently moved to Greenfield from the Boston area after learning they would be working from home for the next two years. “They bought one of the more beautiful homes in town for a fraction of what they would have paid for that type of home in the Boston area.”

While real-estate sales have been brisk across Western Mass., Franklin County has been particularly robust. Szynal shared statistics from October that compared sales among Hampden, Hampshire, and Franklin counties. Total sales for all three were up 9.2%, while in Franklin County alone, sales increased more than 32%. She credits that growth to a number of factors, including the affordability of housing and an active arts and culture scene.

“If you have the ability to work remotely,” she asked, “why not relocate to somewhere that is beautiful and more affordable?”

 

Downtown Vision

Wilson’s Department Store, a mainstay in Greenfield for more than a century, wrapped up its final sales and closed last February. While that came as sad news to many, Wedegartner and Adams are hopeful about interest in the building from Green Fields Market, the grocery store run by the Franklin Community Co-op. While Green Fields representatives have not committed to the Wilson’s site, they have shown an interest in locating downtown.

“I would love to keep the co-op downtown,” Adams said. “A grocery store where you have residents living is an important part of a livable, walkable downtown.”

A former brownfield site, the Lunt Silversmith property has been cleaned up and will be available for redevelopment later this year. The site is near what Adams called “the recovery healthcare campus” where Behavioral Health Network and a number of other social-service agencies provide care and support for people in recovery.

Another redevelopment project involves the First National Bank building across from the town common. Adams said the initial vision was to make the building an arts and cultural space. After studying that as a possibility, it now appears that’s not going to happen.

The building is important, Adams noted, because it provides a face to the town common. “While the First National Bank building won’t be what we originally hoped it would be, our challenge is to figure out the right use for it.”

Just before COVID-19 hit, Adams and her team conducted a survey of residents and businesses to help define the future of downtown Greenfield. The large number of responses from both residents and businesses impressed even the survey consultants.

“The high rate of return on the surveys speaks to people’s interest and engagement of what our future will look like,” Adams said.

As people start receiving the vaccine, she believes the region will be able to put the coronavirus era in the rear-view mirror fairly soon.

“I’m a planner, so it’s exciting that there is a plan to get people vaccinated and that we are headed in the right direction,” she said.

Which would finally get the city off that pause button — and into ‘go’ mode.

Features

The Consumer’s Dilemma

By John Garvey

“If you’re not paying for the product, then you are the product.”

That’s a quote from Daniel Hövermann in The Social Dilemma. If you have not seen the Netflix documentary, here are the important parts: a bunch of really rich people explain how creepy and addictive social media is, how most of them repeatedly and for different companies built it to be so, and how bad they feel about doing all that.

They explain, as their makeup artist prepares them for their actual interview, how social-media algorithms monitor our every move on the platforms. Nefariously, according to The Social Dilemma interviewees, this data is provided in anonymized form to advertisers so that they can get you to buy their products. In that way, you are the product — well, actually, your data is the product — that is offered by the platform (Facebook, Instagram, LinkedIn, Google) to the advertisers.

Actually, your attention is the product and has always been what marketers and platforms seek. Data can help get your attention, but it is a big mistake to think that data is going to drive conversion. Attention does.

Enter the feds and 46 attorneys general and one of the biggest anti-trust cases in U.S. history. They are suing Facebook essentially because, years ago, it bought Instagram (2012) and WhatsApp (2014) with FTC approval and then got really good at growing them. The charge is that they got so good at it, they made it bad for consumers and advertisers. Or, as the FTC put it, “suppressing, neutralizing, and deterring serious competitive threats.”

New York Attorney General Letitia James suggested on NPR’s Here & Now that the malfeasance goes even further. “Facebook’s monopoly means that users can’t pick up and go to another platform because they have no other meaningful alternatives.”

I’m guessing she is not on TikTok, although that platform has attracted its own turbulence from the Trump administration with the president’s determination that it is a national security risk.

It’s a safe bet that the courts will be dealing with all of this mess for some time.

John Garvey“Apple is acting to protect user privacy right now, and Facebook is freaking out. Apple’s upcoming version of iOS will require that apps ask user permission to track their activity across different apps or sites.”

So, where are the more near-term digital privacy protections and marketing changes coming from? This is a bit of a shocker because digital privacy protection is coming from two main sources these days: the European Union (EU) and Apple.

You know those annoying ‘accept cookies’ messages when you visit a new website? You can thank the EU and the General Data Protection Regulation obligations that went into full effect in May 2018. Because it is too hard to have one way of operating here and another there, generally EU regulations end up impacting if not protecting us as well.

There is regulation on the way. The EU’s Digital Service Act and Digital Markets Act are likely to create a new rulebook that will dramatically change the operations of online platforms as well as bolster the rights of consumers.

That’s all in the future. Apple is acting to protect user privacy right now, and Facebook is freaking out. Apple’s upcoming version of iOS will require that apps ask user permission to track their activity across different apps or sites. Even if the user gives that permission to track, iOS 14 — the software that runs the iPhone — will allow that user to turn it off at any time.

Think of it this way: Facebook will have to ask you, if you are an iPhone user, “hey, can I track a bunch of stuff you do on this phone and sell it to companies?” What would your answer be?

Apple’s iPhone controls more than 50% of the mobile-device market, so it’s no wonder why Facebook is freaking out. According to Inc., “Facebook is saying that iOS could result in a 50% drop in revenue for what is known as Audience Network. That’s Facebook’s advertising product that serves up ads within apps based on a user’s activity elsewhere. Audience Network is only a small part of the $70 billion in advertising revenue the company rakes in, but it isn’t hard to see why Facebook would be concerned.”

Recently, Facebook started running its own ads that highlight the harm users controlling access to their personal data will have on small business. The #SpeakUpForSmall campaign urges all users to take a stand for small businesses everywhere and add their voice in the comments section of their ad. At the time of this writing, there were three.

Facebook, whom Fast Company named “the worst brand of the year,” could use more likes.

 

John Garvey is founder of Garvey Communication Associates Inc., a digital marketing and PR agency with offices in Springfield and Los Angeles.

 

Features Special Coverage

Marking a Milestone

Over the years, Paul Mina says, the name over the door and on the stationery has changed many times — previous incarnations include Community Chest, Red Feather, and United Fund — but the basic mission of the United Way of Pioneer Valley (UWPV) certainly hasn’t.

“The names have changed, the faces have changed, but the work is the same,” said Mina, who serves as administrator of both the United Way of Pioneer Valley and the United Way of Tri County in Framingham in an arrangement that speaks to the many fiscal challenges the organization has confronted in recent years and the need to consolidate and achieve economies of scale. “And that is, very simply, to improve the quality of life for people living in the Pioneer Valley area.”

As he talked with BusinessWest about this mission, on the occasion of the agency’s centennial (the actual birthday is Jan. 10), Mina was looking through some old news clippings, brochures, and assorted memorabilia that had been gathered to help with various efforts to mark this milestone. Together, these pieces help tell the story, he said, adding that the United Way has certainly evolved, as its name has, over the years.

But, as he noted, the underlying mission hasn’t.

“I look for a golden thread throughout the narrative,” he said as he thumbed through a large scrapbook and collections of news stories and promotional material. “And through all of that narrative, all of that archival material … the golden thread that links 1921 to 2021 is helping to improve people’s lives; that’s the endgame.

Paul Mina

Paul Mina

“The names have changed, the faces have changed, but the work is the same.”

“And it’s very significant to note that it was never about giving a handout — it was always about giving a helping hand — and to do it with as much dignity and respect as possible,” he continued. “Whether it’s 1921 or 2021, there are still people who need a helping hand so they can move from dependence to independence and self-sufficiency. That has been the goal, it is the goal, and it will always be the goal.”

 

It is somewhat fitting, said Mina, that the agency’s milestone celebration comes in the midst of a crisis — the COVID-19 pandemic — because, while the United Way of Pioneer Valley has been there to serve those in need every month of every year since January 1921, it has always come forward and stepped up at especially challenging times to meet greater and often different needs.

With that, Mina offered some history lessons. During World War II, for example, the agency, historically linked very closely with the Red Cross, worked to provide a number of services to returning veterans, and in the case of the local chapter, there was a specific focus on helping to reunite families broken apart by the war, and then help them assimilate to a very changed landscape.

“There was a lot of upheaval back home,” he said. “The men were off fighting overseas, the women were in factory jobs … there was a very different kind of assimilation. When a lot of these men came home, their wives, who were basically homemakers prior to them leaving, many of them had good jobs and careers in factories. This wasn’t something that any of them were used to seeing.

“When the men came back, there was a great amount of adjustment that had to take place,” he went on. “The women had to go back to their previous domestic role because the men had to get their jobs back to go back to work. There was a lot of assimilating, and that’s when philanthropy really took off because, now that women had been outside the home, they were involved in many, many things they hadn’t been involved in before, charity being one of them.”

 

That’s just one example, he said, noting that the agency has stepped up during other periods of turbulence, change, and need, providing help with everything from administering the polio vaccine in the 1950s to supplying food to the many who needed it during the Great Depression.

Bringing things right up to the present, Mina noted that, in recent years, the agency has added new services and new ways to help those in need, with everything from prescription savings to financial-literacy efforts to a Mass 211 hotline and its companion suicide-prevention ‘call-to-talk’ line.

And during this pandemic, UWPV, which serves Hampden County, Granby, and South Hadley, has continued that pattern of stepping up.

Indeed, it created a COVID-19 relief fund that including the awarding of grants to roughly 40 organizations, bringing a truckload of 5,000 hot meals to the Food Bank of Western Massachusetts, delivering another truckload of food-relief boxes (20 pounds per box) to the Holyoke Boys & Girls Club for distribution throughout the city, an initiative called Project Toybox that brought 15,000 new toys to affiliated agencies across the region for distribution to young people, and even a drive-up Halloween event at the TD Banknorth building in downtown Springfield, which served to fill a void left by formal and informal bans on trick-or-treating (more on some of these later).

For this issue, BusinessWest talked with Mina about the many things being celebrated as this agency celebrates this milestone, and how the work being carried out during the pandemic is in many ways simply the latest chapter in a century-old story of meeting needs within the community.

 

Past Is Prologue

To emphasize his repeated points about how things have changed over the past century or so — and how they haven’t — Mina pulled a clipping from the pile he had collected, an advertisement of sorts for something called the ‘Charity Chest,’ and pointed to the date, 1918, and then the headline over the piece:

“Charity is not a pocket for the shiftless to dip into,” it read, with the subhead “Far from it. Charity is a long ways from being a lazy man’s paradise.”

Mina noted that this was a reference to how many looked upon those seeking help in those days. He also noted that the language regarding charitable efforts has long since changed, with those involved no longer making any references to the ‘shiftless’ or the ‘lazy,’ for obvious reasons.

But the rest of the ad could almost run today, he said, noting phrases like these with regard to charity: “Its prime function is to relieve distress. Always has been and always will be. Yet, while giving relief in deserving cases, it does far more than that.” And also: “Its main object is to prevent the cause, thereby vitally affecting you and me and everybody. Distress does not always mean poverty. It may mean misfortune, sickness, or the suffering of innocents from wrongdoing of others. All of these charity tries to prevent.”

Again, some of the language has obviously changed over the years, but those sentiments expressed back at the height of World War I are those that still define the United Way today. As Mina noted, it’s not a handout, but a helping hand, and it has been this way through a host of name changes, affiliations, and partnerships.

Tracing the history of all those names the agency has used, Mina said the organization got its start as the Springfield Community Chest. Later, it became the Springfield Community Chest Red Feather Drive (he still has a red feather mounted in a large frame), with the feather being a symbol of charitable giving for more than 150 years. In fact, he noted, the Red Cross and the Red Feather ran an annual appeal together, before the two organizations separated.

Later, the organization was known under the names United Appeal and United Fund, before United Way came into use in the late 1960s.

Regardless of the name on the door, the organization has been carrying out the same essential mission, said Mina, adding that the agency’s programmatic niche, if that’s the proper phrase for it, can be summed up with three simple words: basic human needs.

Elaborating, he said these include food, clothing, shelter, and programs for children and seniors. “These are the things we focus on for a reason, because these are the things that resonate with people. These are the things, whether people are black, white, no matter what ethnicity or color, people in need are in need. Period. That’s the way it’s always been here, and I’m proud to say that it continues to be that way.”

To put the mission and its importance in perspective, Mina rewound the tape on a phone call he received only a half-hour before he talked with BusinessWest from a woman now living in New Mexico after relocating from this region.

“We helped her and her family when they were very much in need about 10 years ago,” he said. “And she called me to say, ‘I don’t know if you remember me or not … but I’m so and so, and I moved from the Pioneer Valley down to New Mexico, and a friend of mine who still lives there needs a helping hand right now — she’s got it very tough, she’s unemployed. I told her that I would call you because I was treated so well by the United Way back then that I wanted her to know that there was someone they could call that would treat them with dignity and respect and do the best they can for you. They’re not going to promise you the moon, but they’ll do the best to help you.’

“That’s a nice compliment she paid us there,” he went on, “because that’s the goal; that’s the whole goal.”

 

Where There’s a Will …

Carrying out these goals has never been anything approaching easy, but in recent years, it has become much more difficult, for a number of reasons.

For starters, the way individuals undertake charitable giving has changed, with many now choosing to give directly to specific groups, rather than to larger umbrella agencies like the United Way that funnel money to other nonprofits, said Mina. Meanwhile, the business landscape has changed dramatically through mergers and consolidations, especially in the financial-services sector, and with many small, family businesses simply disappearing from the landscape.

Also, some major corporations have created their own charitable foundations or giving arms, as was the case with MassMutual in Springfield, which had long been one of the primary supporters of the United Way of Pioneer Valley, he said, noting that all these factors have contributed to making the organization itself much smaller — as well as the level of donations it makes annually. Indeed, while this was a $5 million United Way years ago, in terms of total donations, it is now closer to $2 million.

It was these challenges that prompted the UWPV board to explore a number of options when it came to creating efficiencies and reducing the cost of doing business, for lack of a better phrase, while still carrying out its mission. One of those options was a partnership with the United Way of Tri County whereby that agency would share an administrator and also handle backroom operations — bookkeeping, marketing, and others — for this region’s United Way for a percentage of the funds raised during its annual campaign.

The partnership, which came after several years of unsettledness at the UWPV, one that included two CEOs and two interim CEOs between 2016 and 2018, has brought what the board desired most — stability and continued autonomy.

Those qualities have been needed during a pandemic that has further tested the agency, forcing staff to work remotely for a lengthy stretch because its services were not deemed essential, and further impacting its ability to raise money because of the way it has impacted businesses and families alike.

Indeed, this 100th year for the UWPV has been very different, and also very challenging. Need within the communities has obviously increased, but raising funds to meet those needs has been made much more difficult during the pandemic, especially when it comes to the United Way’s time-honored, preferred method of soliciting donations — via payroll deduction.

“Many of the [annual] campaigns are going to be hurting this year because companies are not going back to work in the time frame we need them to,” Mina said earlier this year. “You can’t ask for people to make contributions through payroll deduction if they’re working, and it’s very hard to ask people for support when they themselves are hurting for the first time maybe in many years.

“We’ve found that a very significant number of people in the hospitality industry, restaurants, and food and beverage operations are only a shadow of what they once were,” he went on. “And some of them are never going to recover; a lot of support isn’t there.”

Yet, amid these challenges, the UWPV has found new and different ways to meet its mission during this difficult year, and new and different ways to remind people of the importance of its basic mission.

Through efforts ranging from the food-distribution efforts to the Halloween gathering, the agency was able to meet growing need within the community and address the many ways in which the pandemic impacted day-to-day living and overall quality of life.

Mina was especially proud of Project Toybox.

“It was a wonderful thing,” he said of that initiative. “A lot of the kids that live in the urban area don’t have a backyard, they couldn’t go to the park, they weren’t allowed to congregate … so we figured this was a great opportunity to give them something they could do indoors.”

All this came on top of the annual Stuff the Bus program, which, as that name suggests, fills a school bus each August with age-appropriate backpacks with all the school supplies kids need.

This year, the agency filled 2,600 such backpacks, but in this era of COVID, the exercise was quite bit a different than it has been in previous years.

“It was difficult to come by this stuff because it’s usually donated by the public,” said Mina. “People come to Six Flags, and they get a free roller-coaster ride when they bring items for the backbacks. There’s also a huge collection point at the Holyoke Mall. All those things were not allowed this year.”

So the agency relied instead on a large donation from the MassMutual Foundation as well as some money from the COVID-19 Relief Fund to purchase the needed items at a discounted price.

Overall, these various efforts have been a continuation of that golden thread Mina mentioned earlier, a concerted effort to enable individual donors to collectively make a huge difference in the lives of countless people.

“It’s about empowering the masses to do things that they can’t do alone,” said Mina in summing it all up. “That’s why payroll deduction, which has been the hallmark of the United Way since its inception, is so important. It allows people who don’t have money in the bank, who aren’t necessarily individuals of high net worth, to be able to take a little money out of their paycheck every week, so, at the end of the year, they might have a $52 donation. That $52 donation, added together with the other folks at their company who do the same thing and give a dollar a week, ends up being an enormous amount of money. But they could never do that on their own if they had to give a lump sum.”

 

Finding a Way

Looking to the future, though, payroll deduction is becoming a less-effective way to raise money, for those reasons mentioned earlier, he said. Meanwhile, instead of channeling funds to other agencies, the United Way will be looking to provide more direct services to the residents of this region.

“We just finished a needs assessment, and 90% of the respondents were donors, and of those 90%, 82% thought that the model we had of funding agencies to do good work, to be a middleman of sorts, was not a model that is modern; it’s not a model that they’re willing to continue to support at the levels that they have in the past.

“They want to know that their contribution is directly impacting things,” he went on. “So we looked at the areas that these donors were identifying as gaps, and we put that together with some intelligence work we did on our own, plus what other agencies were telling us, and we identified three huge gaps that we’re going to fill: food insecurity, continuation and expansion of the call-to-talk and Mass 211 lines, and youth-development programs.

“These are our core areas,” he explained. “The survey only reinforced what we already knew — that our niche is basic human needs and helping people improve their quality of life.”

Looking ahead to 2021, Mina said it will be a milestone year for the United Way, and the occasion will be marked in a number of ways.

But for many of the region’s residents, there won’t be much to celebrate. Indeed, while 2020 was the roughest year in memory for many, the coming months are projected to be in some ways even worse as those basic human needs he mentioned continue to mount, healthcare issues multiply because of the many effects of the pandemic, and resources become more scarce.

“There’s going to be a major shortfall in resources in the next year because COVID is having devastating effects on our economy as well as our health,” he said. “But we’ll figure out a way to deal with it; we’ll figure out a way to continue doing our job. We’ve faced tough times before — we’ve faced World War I, World War II, the Korean conflict, Vietnam, the ’60s … we’ve been there through all these things, and we’ll be there through this, too.”

Figuring out a way and doing its job. This is what the United Way of Pioneer Valley has been doing for a century now. And as its second century starts, this track record of success is certainly worth celebrating.

 

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

Community Spotlight Special Coverage

Community Spotlight

By Mark Morris

As the world looks to generate energy from different sources and reduce waste, a new facility just opened in Agawam that contributes to both efforts.

What looks like a plain green building on Main Street is actually a plant that converts food waste into natural gas and fertilizer. Vanguard Renewables, based in Wellesley, approached Agawam Mayor William Sapelli about locating an organics-recovery facility in Agawam. After addressing some initial concerns about truck traffic and potential odor from the plant, the town gave the go-ahead.

“Because Agawam is a designated green community, it’s important for us to bring in facilities like this,” Sapelli said, noting that this is only the second plant of its type in Massachusetts.

Here’s how it works. Let’s say the nearby Hood dairy plant has a pallet of yogurt that does not meet specifications or has expired. Hood can bring that pallet to the Agawam facility, where large extracting machines separate the packaging from the yogurt. The packaging gets bundled and brought to a recycling facility, while the yogurt is mixed with other food waste and water. This forms a slurry, which is then delivered by tanker truck to an anerobic digester, a large, dome-shaped structure. (The closest digesters to Agawam are located on farms in Deerfield and Hadley.)

The slurry is mixed with farm-animal waste in the digester, where two things happen. First, biogas rises from the mix and gets converted to renewable natural gas for heating and cooling. Then, the remains of the slurry, known as digestate, are used as low-carbon fertilizer for area farmers.

“In the past, all this waste was incinerated or dumped into a landfill, but now it’s being turned into energy and fertilizer,” Sapelli said, calling the process “amazing.” As the Agawam facility ramps up to full capacity, it will be able to process 250 tons of food waste per day, according to Vanguard.

Mayor William Sapelli

Mayor William Sapelli

“Because Agawam is a designated green community, it’s important for us to bring in facilities like this.”

That’s just one project that has Agawam officials excited as they move past a challenging 2020 for all municipalities. While the pandemic is still a daily reality, they say this town is focused on growth as a new year dawns.

 

Bridge to Tomorrow

For the past couple of years, the largest infrastructure project in Agawam has been the rebuilding of the Morgan-Sullivan Bridge connecting Agawam and West Springfield. The original completion date was scheduled for May 2022. After Sapelli met with Lt. Gov. Karyn Polito to incentivize the project contractor, Northern Construction, to work overtime and weekends to shorten the deadline, the date was moved to August 2021.

Once the pandemic hit and fewer people were out and about, bridge construction accelerated further. Favorable weather, as well as lighter traffic from both vehicles and pedestrians, allowed crews to get more done every day. Then, the Big E canceled its 2020 fair.

“By contract, the crews had to stop work during the Big E,” Sapelli said. “When the fair was canceled this fall, it gave them an extra 17 days to work on the bridge.” While noting that he is not putting pressure on the construction crews, he predicted the bridge may now be completed by June 2021.

The mayor is also pleased that many of the headaches and traffic jams that usually occur with a major construction project have not materialized. “It’s been a great project,” he said. “You don’t hear a mayor say that very often.”

Like every community, Agawam has had to deal with COVID-19. In fact, the mayor himself had a false alarm after testing positive on a quick test. After going into self-quarantine for several days and not experiencing any symptoms, he took a PCR test (referred to as the ‘gold standard’ of COVID testing), which revealed he had never been infected with coronavirus.

the Morgan-Sullivan Bridge project may now be done by June

With the pandemic reducing traffic and accelerating the pace of work last year, the Morgan-Sullivan Bridge project may now be done by June.

“I asked if I was asymptomatic or if I’d had it a week before, and the answer to both was, ‘no, it was a false positive,’” he said.

While state mandates have limited public access to Town Hall, Sapelli explained that, even if it were open to the public, the building’s layout just doesn’t work well with COVID-19 mandates.

“For example, the public area in the Collector of Taxes office measures about five feet by eight feet,” Sapelli said. “With social distancing, that means no more than one person can stand there; anyone else would have to wait in the hall, which is also cramped.”

Still, with an emphasis on safety first, Sapelli said Town Hall is open for business for anyone who calls ahead for an appointment.

In order to reduce COVID-19 risks and still encourage in-person education, Agawam’s public schools have adopted a hybrid model. Students whose last names begin with the letters A-K attend class on Monday and Tuesday, while those with L-Z last names attend Thursday and Friday. On the three days they are not scheduled in person, students attend class remotely.

The Department of Health and the superintendent of schools are employing the hybrid model as long as COVID-19 cases within the education community remain low compared to the community as a whole. As a former Agawam school superintendent, Sapelli supports this direction.

“The hybrid approach has been working for Agawam. First, we’re making sure everyone is safe so we can get our students in front of teachers,” he said, adding that parents who are uncomfortable with the hybrid model may choose remote learning full-time.

Bars and restaurants everywhere have greatly suffered during the pandemic from mandated closings, limited seating, and other restrictions. To support those businesses in Agawam, the City Council and the mayor have co-sponsored a resolution to waive the $1,500 liquor-license fee in 2021 for all bars, restaurants, and banquet halls.

“We recognize they’ve lost a lot of revenue and have not been able to host the types of events and gatherings they normally do,” Sapelli said. “Waiving the fee is one thing we can do during the pandemic to help local businesses in these tough times.”

Agawam at a Glance

Year Incorporated: 1636
Population: 28,718
Area: 24.2 square miles
County: Hampden
Residential Tax Rate: $16.83
Commercial Tax Rate: $31.61
Median Household Income: $49,390
Family Household Income: $59,088
Type of government: Mayor; City Council
Largest Employers: OMG Inc., Agawam Public Schools, Six Flags New England, Whalley Computer Associates
* Latest information available

The fee waiver is just one of the ways the City Council and the mayor are working together to help local businesses, he added. “We are business-friendly. When a new business wants to locate in Agawam, we try to expedite the permitting process by having a team meeting that includes everyone from our fire and police departments to the health inspectors and building inspectors. They all meet together with the business owner, so it becomes one-stop shopping.”

 

House Calls

That cooperative attitude makes life easier for Marc Strange, director of Planning and Community Development in Agawam, who told BusinessWest about several projects in the area of South Westfield Street in the Feeding Hills section of town. One of the most anticipated projects is the Villas at Pine Crossing, an over-55 community that will add 44 units of senior housing to the market.

“Our office frequently gets calls from residents who are looking to downsize, but they want to stay in Agawam,” Strange said. “The designs at the Villas are more friendly for an aging population, something that is desperately needed in Agawam and everywhere else.”

He said he’s grateful the developer chose Agawam for the Villas, and welcomes similar projects. “We’re hoping this will trigger future developments for 55-plus communities in Agawam.”

The land parcel that was once the Tuckahoe Turf Farm sits adjacent to the Villas at Pine Crossing. After years of considering new uses for the property, Agawam officials are now looking at a solar-energy installation for part of the site. “The revenue from the solar field will allow us to develop the rest of the property for recreational uses, such as walking trails and such,” Sapelli said.

Agawam also completed a project in 2020 to convert all its streetlights to LED fixtures, which emit brighter light but also help the city reap potential savings of $220,000 every year. “Agawam is looking to save about $100,000 per year in energy costs and nearly $120,000 per year in streetlight maintenance,” Strange said.

During construction of the Morgan-Sullivan Bridge, crews are using two desirable land parcels to stage and store equipment. Once the bridge is complete, those two parcels will be available for development as well.

“To be clear, as exciting as it is to market prime commercial sites, the new bridge will have an impact on the town that goes well beyond those two parcels,” Strange said.

All of which promises a brighter future for Agawam — literally and figuratively.

Community Spotlight

Community Spotlight

Tom Bernard says myriad entities in North Adams, from restaurants to municipal offices to MCLA, have had to do business differently this year.

The last time BusinessWest spoke with Mayor Thomas Bernard for the Community Spotlight, about a year ago, he was talking up the city’s Vision 2030 plan, which was hatched in 2011 and is revisited regularly.

At a public information session last year, city leaders discussed the plan’s seven priorities — economic renewal, investment in aging infrastructure, creation of a thriving and connected community, intergenerational thinking, fiscal efficiency, historic preservation, and food access — and some specifics of what’s happening in each.

But 2020 has been about reacting as much as planning — though Bernard says communities need to do both, even during a pandemic.

“I look at my wonderfully organized and beautifully color-coded and phased planning documents from January and February, and I think about our February staff meeting where we discussed this COVID thing — ‘what could this mean for us?’” he recalled. “It’s been such a difficult year, but I can still point to some really great signs of progress.”

That includes continued movement toward adaptive reuse of old mill space, plans to renovate 67-year-old Greylock Elementary School, and a regional housing-production study that uncovered a need for more affordable housing, but more market-rate housing as well.

That said, it’s been a tough year for many businesses, too.

“People want to get the most bang for their buck without sacrificing quality, without sacrificing engagement, without sacrificing the memories they make. In that sense, North Adams continues to be attractive, and the Berkshires continue to be attractive.”

“Everyone has been struggling,” the mayor said. “Our restaurants did a terrific job early on in making the pivot to curbside and delivery, and they did fairly well when the weather was nice, and then a lot of them got really creative in how to expand their outdoor dining. The city and the licensing board tried to be as friendly and accommodating and make it as easy as possible for people,” Bernard noted, adding, of course, that winter will pose new hardships.

Municipal business continued apace as well, albeit sometimes with a creative, socially distanced flair.

For example, “as part of our property-disposition strategy, we did an auction of city properties, and we did it down at the municipal ballfield. There was plenty of space in the bleachers and stands for bidders, and the auctioneer was out on the field, taking bids. We brought people back to City Hall, one at a time, to do the paperwork. We went nine for 10 on properties we put up for auction.”

 

The Old College Try

Another success story took place at Massachusetts College of Liberal Arts (MCLA) — simply because it made it through a semester of on-campus learning with no major COVID-19 outbreaks.

“We heard loud and clear that the campus experience is important,” said Gina Puc, vice president for Strategic Initiatives, noting, of course, that it’s a somewhat different experience than usual, with students alternating between the classroom and online learning in their residence halls, while only 550 of the 1,225 enrolled students this fall were on campus, all in single rooms.

“And it worked — our positivity rate was 10 times lower than the state’s,” she said. “We made it through the entire semester without having to alter our plans. The students were the main reason we were able to stay the course. We had incredible adherence to all the social-distancing and health and safety guidelines in place.”

The testing program was so successful, in fact, that MCLA was able to donate 130 leftover COVID tests to the city’s public schools, to perform asymptomatic testing on teachers and staff.

“They did such a great job with their testing program,” Bernard added. “Their positivity stayed low, contact tracing was good, and it helped that they were out before the holidays, so Thanksgiving didn’t play into it.”

Enrollment was down about 20%, but mostly among first-year students, reflecting a nationwide trend. “The 2020 high-school graduates didn’t even get their own graduation ceremonies, and it certainly disrupted their college plans,” Puc said.

But she’s confident the college will build off its unusual, but encouraging, fall semester and continue to attract students to North Adams. “We have an incredible combination of beauty and the kinds of cultural amenities usually found in urban areas,” she said.

Students studying the arts have plenty of local institutions at which to intern, but the college’s STEM center and the addition of a radiologic technology program in the health sciences reflect the regional growth of careers in those fields, as reflected by big players like General Dynamics, the Berkshire Innovation Center, and Berkshire Health Systems, and a host of smaller companies.

Tourism is a critical industry in North Adams as well, and visitor numbers were certainly down in 2020 overall, Bernard said, although MASS MoCA had a successful reopening and continues to do well. “The big advantage they have is space — you can be there in a socially distanced way. But, still, fewer people have come through this year.”

North Adams at a Glance

Year Incorporated: 1878
Population: 13,708
Area: 20.6 square miles
County: Berkshire
Residential Tax Rate: $18.64
Commercial Tax Rate: $39.83
Median Household Income: $35,020
Family Household Income: $57,522
Type of government: Mayor; City Council
Largest Employers: BFAIR Inc.; Massachusetts College of Liberal Arts
* Latest information available

The exception is outdoor recreation, which has thrived across the Berkshires this year.

“As much as we’ve done incredible work because of our location, because of MASS MoCA and Williamstown Theatre Festival and Williams College and Barrington Stage and Berkshire Theatre and all these tremendous cultural resources, we don’t always appreciate how gorgeous it is out here,” Bernard said. “But, for a lot of people, that’s a huge draw.”

While the number of people visiting for foliage season may have been down from past years, he said he drove around the iconic Route 2 hairpin turn on a number of occasions, and always saw people stopping to take photos.

“Again, what a great, socially distanced way to appreciate the nature of the Berkshires in a year when you can’t engage in the area as fully as you might otherwise,” he said. “You can still get in the car, a motorcycle, or take a bike ride, and see it all. We know there’s demand for that.”

 

Hit the Road

He belives tourism in and around North Adams should rebound fine post-pandemic — if only because people’s dollars go further here, because of the mix of reasonably priced attractions and no-cost nature.

“People want to get the most bang for their buck without sacrificing quality, without sacrificing engagement, without sacrificing the memories they make. In that sense, North Adams continues to be attractive, and the Berkshires continue to be attractive,” he said.

As part of the Mohawk Trail Woodlands Partnership, the city recently landed some funding for a comprehensive mapping and marketing effort of its trail systems. “It’s for people who want to visit, maybe go to a museum, have a good meal, stay a few days as tourists, but then they want to get out on the trails.”

Add it all up, and there’s plenty to look forward to in 2021.

“I’m bullish and optimistic about what spring and summer could bring,” Bernard went on. “I think there will still be caution, I think there will be wariness, but I think there’s also pent-up demand, too, and people will think about where they want to go and what they want to do.”

 

Joseph Bednar can be reached at [email protected]

Community Spotlight

Community Spotlight

By Mark Morris

the new Ludlow Senior Center

Depending on how the pandemic progresses, the new Ludlow Senior Center could begin hosting some indoor programs by February.

 

Despite the unprecedented challenge of COVID-19, the town of Ludlow keeps building and improving.

As coronavirus rates continue to rise across Massachusetts, Manuel Silva, chairman of the Ludlow Board of Selectmen, said officials in town are closely monitoring the number of cases there.

A long-time selectman who served an earlier term as chairman, Silva said the pandemic has brought more challenges than a typical year. Like most places, Ludlow Town Hall is closed to the general public except by appointment. Silva said some town functions, such as the town clerk and tax collector’s offices, are conducting limited public business from the rear of the building, where they can offer service through a window. “It almost looks like an ice-cream stand,” he said with a laugh.

While Ludlow Mills features several ongoing projects (more on that later), Silva wanted to talk to BusinessWest about a few prominent municipal projects that are nearing completion.

For example, construction on Harris Brook Elementary School is progressing, with a good chance that students will begin attending next fall. Harris Brook is being built to replace Chapin and Veterans Park elementary schools, with the new school located on what used to be playing fields for the adjacent Chapin School.

It’s possible the old buildings may be repurposed and given a second life, Silva said. “We are looking at doing a study on both Chapin and Veterans Park to see what other use the town might have for them.”

He and other town officials are scheduled to tour Harris Brook and inspect the progress that’s been made on it. Once the new school is complete, Ludlow will receive reimbursement from the state for nearly half the cost of the $60 million project.

Another project nearing completion involves road improvements to Center Street, a main artery in Ludlow. Because the street is also part of Route 21, a state highway, the Commonwealth paid for most of the $5.6 million in improvements.

Harris Brook Elementary School

Construction continues on Harris Brook Elementary School, which will replace both Chapin and Veterans Park elementary schools.

Perhaps no one in Ludlow is more enthusiastically looking forward to opening the new Ludlow Senior Center than Jodi Zepke. As director of the Council on Aging, she and her staff plan to move out of the basement of the former high school on Chestnut Street and into the new building on State Street. While staff will be taking occupancy of the new building in mid-December, the Senior Center will remain closed to the public because of COVID-19 concerns, a situation that Zepke said poses both pros and cons.

“We’re excited to get into the building. It will give the staff an opportunity to get comfortable in their new surroundings before we have seniors come back,” she said. “At the same time, we know how excited everyone is to visit the new building as soon as they can.”

In what she called a “perfect world” scenario, the Senior Center could begin hosting some of Council on Aging programs indoors at the new facility in February. Throughout the warmer months, the council’s popular exercise and social programs were held outdoors at the park adjacent to the current senior center. As the weather became colder at the end of October, the outdoor programs wrapped up for the season.

“Without innovative thinking from Westmass and the developers we work with, these mill buildings could have been vacant and falling apart.”

“The outdoor programming was a great opportunity for people to see each other, get out of the house, and do some exercising,” Zepke said, noting that said groups took part in yoga, tai chi, and discussion groups, all socially distanced. Several of the exercise programs are available on local cable-access TV. While the broadcasts can help keep people active, she recognizes that people still need the socialization such programs provide for seniors in town.

“The most important thing is to remain connected to people, otherwise the social isolation is terrible,” she said. “We’re pushing for at least some indoor programming because we’re already seeing the mental-health effects of staying home all the time.”

Before COVID-19, the Senior Center hosted a popular daily lunch program. When coronavirus hit and it was no longer possible to bring people to the center, Zepke said her staff switched gears overnight and converted the daily lunch to a thrice-weekly grab-and-go meal where people drive up and receive a box lunch from center staff who are dressed in appropriate PPE. Zepke calls it one of the best things her organization has done since the pandemic hit.

Ludlow at a glance

Year Incorporated: 1774
Population: 21,103
Area: 28.2 square miles
County: Hampden
Residential Tax Rate: $20.62
Commercial Tax Rate: $20.62
Median Household Income: $53,244
Median Family Income: $67,797
Type of government: Town Council, Representative Town Meeting
Largest Employers: Hampden County House of Correction; Encompass Rehabilitation Hospital; Massachusetts Air National Guard; Kleeberg Sheet Metal Inc.
*Latest information available

“It’s an opportunity for us to see people and take a few minutes to chat with them,” she said. “It’s the highlight of my day.”

 

Milling About

One of the brightest spots in Ludlow’s economic development for the last several years has been the redevelopment of a series of old mills located on the banks of the Chicopee River. The Westmass Area Development Corp. owns the mills and works closely with the town to bring new vitality to the entire area. Town Planner Doug Stefancik said the partnership between Ludlow and Westmass is a win-win.

“Without innovative thinking from Westmass and the developers we work with, these mill buildings could have been vacant and falling apart,” he said. “Instead, they are developing state-of-the-art projects that enhance the whole State Street corridor.”

Notable tenants in the mill project include businesses such as Encompass Health Rehabilitation Hospital of Western Massachusetts and Iron Duke Brewing, but Stefancik also pointed to a successful housing development known as Residences at Mill 10, which added 75 units of senior housing to Ludlow when it opened in 2017.

Looking forward, plans are in the works to develop the clock tower, also known as Mill Building 8. WinnDevelopment, builder of Residences at Mill 10, has proposed a plan for 95 units of senior housing in the building, with 48,000 square feet on the first floor dedicated to retail space. Stefancik said the project is in the early stages, and the next steps include site-plan approval and a public hearing.

“We’re fortunate that WinnDevelopment is coming back to work on Mill Building 8 because their work is first-rate,” he said. “They completed Residences at Mill 10 three years ago, and since its opening, it has been wildly successful.”

As more residents move to the area, Stefancik said the Ludlow Riverwalk, located behind the mill complex, is growing in popularity. “It’s becoming a walkable neighborhood area, and we like to see that.”

Earlier this year, a key infrastructure component in the redevelopment of the mills was approved. The Riverside Drive project is a proposed roadway that replaces an old access road in the mill complex. The project is currently out for bid, with construction expected to start next year on 4,130 feet of roadway that runs through the mill complex from East Street to First Avenue. When complete, Riverside Drive will improve access to all areas of Ludlow Mills.

The revitalization of the mills has become a major asset for the town of Ludlow.

“It’s been one of the areas where we’ve seen massive growth for economic development and housing opportunities,” Stefancik said, adding that potential exists for even more growth in the years ahead — something that’s true not only for the mill complex, but for the town itself.

Coronavirus Features

Looking Up

Could better times be around the corner? A growing number of executives across the U.S. think so.

In the just-released 2021 National Business Trends Survey from the Employer Associations of America (EAA), 44% of company executives see an improving economic outlook in 2021. This annual survey shares information on what executives nationally are doing to address the changing business climate. Survey responses also reflect the impact COVID-19 has had on this year’s business trends.

When executives were asked if the overall U.S. economy in the next 12 months will “improve, stay the same, or decline,” the largest segment of respondents (44%) think it will improve, as opposed to last year, with only 12% expecting the economy to improve — and that was before the pandemic had come into view. This year, 33% think it will stay the same, as opposed to 52% last year. Only 24% think it will decline, compared to 36% a year ago.

“COVID certainly has had a significant impact, and perhaps many are feeling that the economy can only get better moving forward into 2021,” said Thoran Towler, who chairs the EAA board of directors. “In fact, fueling that optimism, 57% of executives project slight to significant increases in sales and revenue. American businesses are showing their resilience and readiness to tackle today’s challenges and come out stronger than ever before.”

An additional 11 questions were added to this year’s survey regarding COVID-19’s impact on business, addressing employee safety, stay-at-home measures and social distancing, remote work, online interviews and training, hazard pay and bonuses, and candidates who are unwilling to work in the office or out in the field.

When asked how concerned respondents are regarding COVID-19 and its impact on business continuity (specifically the supply chain, financial implications, and temporary shutdowns), 52% indicated they are “extremely to moderately concerned.” In the Northeast, 43% of the region’s executives expect the pandemic to negatively impact business and capital spending either moderately or significantly.

However, companies are already starting to pivot from a focus on pandemic measures to investing in the future. As the charts the two charts demonstrate, respondents expect to put less effort into COVID-specific activities in 2021 than they did in 2020, and more effort into investing in technology, equipment, and other efforts to grow their business.

“The pandemic has forced companies to be agile and innovative during these uncertain times,” said Mark Adams, director of Compliance at the Employers Assoc. of the NorthEast. “While expenditures are being scrutinized now more than ever before, the need to invest strategically nonetheless remains important as businesses seek to position themselves to rebound in 2021 and make up for lost ground.”

Similar to last year’s survey responses, the top three serious challenges for business executives include talent acquisition, talent retention, and the ability to pay competitive wages. The ability to pay for benefit costs and the cost of regulatory compliance rounded out the top five.

Also noteworthy for 2021, 64% of the survey respondents are planning to award wage and salary increases, while 29% plan to award variable pay bonuses next year.

The EAA is a national nonprofit association that provides this annual survey to business executives. The 2021 survey included 1,484 participating organizations throughout the U.S., an increase of nearly 400 over last year’s survey.

Community Spotlight

Community Spotlight

By Mark Morris

For Longmeadow Town Manager Lyn Simmons, it’s been quite a first year on the job.

With 16 years of experience in municipal government in of Northampton — the last six years as chief of staff for Mayor David Narkewicz — Simmons became Longmeadow’s town manager a year ago this month. After three months on the job, Longmeadow — like the entire world — found itself in uncharted territory.

As challenging as the pandemic has been, Simmons said one positive has been the opportunity to build relationships with department heads and the emergency-management team much faster than she might have under less-hectic circumstances.

“We had to come together quickly and navigate all of this together,” Simmons said. “As difficult as the pandemic has been, the team that’s in place here and the relationships that we’ve formed have made dealing with it much easier.”

She also credits Longmeadow residents for their response in handling the pandemic, noting that people in town are adhering to public-health guidelines and taking personal responsibility. “We see people social distancing, wearing masks, and doing what they need to do to help protect themselves, their families, and our community.”

Lyn Simmons

“People like living in Longmeadow because it’s a great community, it’s very walkable, and there are lots of outdoor recreation activities. It really appeals to every generation.”

Because most residents complied with state mandates, Longmeadow experienced low numbers of the coronavirus throughout the summer. While the number of cases in town has begun to increase during the fall, this reflects the overall trend in Western Mass. and across the state, Simmons said, adding that a team of municipal employees is monitoring pandemic-related grants and other funding sources that might be available through the state and federal government.

“The pandemic has certainly been a disruption to normal life, whether it’s doing business with town offices or making adjustments to programs that are run by the Parks and Rec department, or the Adult Center,” she noted. But business not been halted, and as she spoke with BusinessWest, she outlined some of the ways progress continues in this small, residential town.

Worth Their Salt

In the midst of all the COVID-related disruption, Simmons points to two town projects she calls bright spots during these challenging times. First, a new Department of Public Works (DPW) facility — a $24 million project on Dwight Road, on the site of a former tennis club — is nearing completion.

The second project is the $14 million Adult Center, where finishing touches are being applied as it gets closer to opening day. While the Council on Aging will have a large presence, the Parks and Recreation department will also run programs and activities from the facility, making it a resource for all residents.

After COVID-19 hit, safety protocols were implemented at the DPW and Adult Center sites to allow construction work to continue and keep both projects on track to open in early 2021.

“The only disruption we had occurred earlier in the spring when the subcontractor who was providing and installing a salt-storage shed was quarantined crossing the state line from New York,” Simmons said. “We’ve been able to move past that, and the salt shed is fully constructed now.”

With 95% of property in Longmeadow devoted to residential dwellings, town officials pay close attention to activity in the real-estate market. Like most towns, the normal sales bump that occurs each spring was delayed by the pandemic. Sales activity returned in July and has remained brisk since then, with most houses selling at the asking price.

“We’ve been able to capture that strong real-estate market,” Simmons said. “On average, houses are staying on the market for about 20 days; low interest rates have certainly helped.”

The demographics in Longmeadow have remained similar to what they’ve historically been. Simmons said the town has a healthy mix of approximately 29% families and about 30% in the over-60 demographic. One key indicator that remains steady is school enrollment, where no declines have been reported.

“People like living in Longmeadow because it’s a great community, it’s very walkable, and there are lots of outdoor recreation activities. It really appeals to every generation,” she noted.

Looking to the future, the town owns a 10-acre parcel on Academy Drive known as the Water Tower property. Prior to the pandemic, the area was under consideration for an over-55 housing development. If this project moves forward, Simmons said, it might solve a dilemma for many seniors in town. Many aging residents want to continue to live in Longmeadow but would also like to downsize from their current home to one-level living, and an over-55 housing development could be a good solution.

Longmeadow at a glance

Year Incorporated: 1783
Population: 15,784
Area: 9.7 square miles
County: Hampden
Residential Tax Rate: $24.21
Commercial Tax Rate: $24.21
Median Household Income: $109,586
Median Family Income: $115,578
Type of Government: Open Town Meeting; Town Manager; Board of Selectmen
Largest Employers: Bay Path University; JGS Lifecare; Glenmeadow
* Latest information available

“Once we get the pandemic behind us, I expect our discussions of this site to be dusted off and brought back into the public sphere,” she added.

Meanwhile, conversations about two other potential projects are continuing, including development of a former church at the intersection of Williams Street and Redfern Drive with a different use, and a project on Williams Street that involves building a long-term-care facility. “As far as I know, those plans are still in the works,” Simmons said of the latter plan, “but it’s been slow-moving.”

 

Sharing Resources

More concrete progress can be found on a regional level. Last year, Longmeadow joined with Chicopee to form an emergency communications center called WESTCOMM. By taking a regional approach to emergency dispatch calls, both towns save money, increase efficiency, and have backup support when multiple calls come into either town.

Now nearly a year into the program, WESTCOMM has been a great success — and is growing, Simmons said. “Since WESTCOMM launched in December, we’ve added two more communities this year, when East Longmeadow and Monson came on board with Longmeadow and Chicopee.”

WESTCOMM currently operates out of the Chicopee Police Department, but officials are exploring a move to a larger facility as more communities come on board. Simmons said she expects to hear more about that in the coming year.

Before the pandemic, Longmeadow was looking to share some public-health services with neighboring East Longmeadow. Because the health departments and boards of health for both towns are expending all their energy on COVID-19 concerns, that project has been set aside at least until the pandemic is over, she added. “Looking at a merger of two health departments right now is a little more than we can take on at the moment.”

Simmons was born and raised in Northampton, and she first became familiar with Longmeadow while pursuing her undergraduate degree at Bay Path University.

As she completes her first year as Longmeadow’s town manager, she’s proud of how well people in the community have responded throughout the pandemic.

“I appreciate everyone’s understanding and support as we all try to get through this time together,” she said. “I am really looking forward to the new year when we will open both the new DPW and Adult Center in town.”

Simmons added that she can’t wait for the public to see both buildings and hopes to take residents on tours of the new facilities when they formally open in 2021 — a year when municipal leaders in all communities hope they can put COVID-19 behind them and are able to focus fully on the future once again.

COVID-19 Features

Let There Be Light

Judy Matt says the Spirit of Springfield (SOS) exists for one reason — to entertain residents across the region and create some memories.

It hasn’t been able to do any of that to this point in 2020, obviously, and Matt, the long-time executive director of the nonprofit agency, has been frustrated and disappointed by this reality. Annual events such as the pancake breakfast (long heralded as the world’s largest), the Fourth of July fireworks, and the Big Balloon Parade have been wiped off the calendar due to the COVID-19 pandemic, and there remains uncertainty about whether any of those can be staged in 2021.

Meanwhile, at the SOS, with little revenue coming in other than a Paycheck Protection Program (PPP) loan and the proceeds from the annual golf tournament, the staff — and that includes Matt — have been on unemployment for at least some of this year, although she has continued to come to the office every day.

But there will be one bright spot as a very trying year — for both the region and the SOS — comes to a close, as the necessary approvals (and many of them were required) have been received to stage Bright Nights in Forest Park from Nov. 25 to Jan. 6.

Things won’t be exactly the same — there will be new restrictions on everything from the hours of operation (the front gate will have to be shut at 8:45 p.m.) to how tickets are paid for (no cash, for example) — and the the gift shop in the park will be closed, although a facility will open downtown in the Springfield Visitors Center. And no one will be allowed to get out of their cars under any circumstances.

“Everyone has indicated to us that they think it’s going to be the best one we’ve had.”

But just being able to have Bright Nights will provide a huge boost for the region and the Spirit of Springfield, Matt said. “The region needs Bright Nights, now more than ever. It’s been a long, trying year for everyone.”

Bright Nights will go on in 2020

There will be some new restrictions on hours, method of payment, and other matters, Judy Matt says, but Bright Nights will go on in 2020, a bright spot in an otherwise dark year.

But while the region needs Bright Nights, so too does the Spirit of Springfield, which relies on the income from this signature event to help carry out its mission and present those other annual gatherings listed earlier.

So Matt and others will be keeping their fingers crossed on the weather — past history has shown that a few snowstorms can wreak havoc on the bottom line — while trying to make the most of the opportunity it has been given to stage Bright Nights in the middle of a pandemic.

And early indications are that, despite some restrictions on the hours and other factors, this could be one of the best seasons in the 26-year history of the Bright Nights, given what kind of year it’s been and the need for some kind of relief valve, especially as the holiday season approaches.

“Everyone has indicated to us that they think it’s going to be the best one we’ve had,” she told BusinessWest, adding that, while it might well achieve that status, this year’s Bright Nights will be challenged by the restrictions imposed upon it by city and state officials, especially the shortened hours of operation.

“We are theoretically losing 39 hours during which we could have been selling tickets — in the past, we had a lot of nights where we were open ’til 11,” she said, adding that, with vehicles going through at the rate of 300 per hour, those lost hours will hurt.

The city has allowed Bright Nights to stay open an additional three days, she went on, adding that, while this will help, the volume of traffic through the displays decreases markedly after Jan. 1.

“I can keep talking about what we can’t do and what we won’t have,” she said. “But we’re just very grateful to be able to do this; it’s important that this region has Bright Nights this year.”

As for what comes after Bright Nights … Matt said there are certainly question marks about whether the SOS will be able to get back into the entertainment business full-time next year, but she and her staff have to plan as if that is going to be the case.

But if the current conditions continue well into next year, the agency will be facing some hard questions. In addition to the events being wiped off the slate, COVID-19 also prohibited the agency from staging its annual Bright Nights Ball, which traditionally nets the SOS $50,000 to $60,000 for operating expenses.

Without that revenue, the agency needs a very solid year for Bright Nights and probably other forms of help, such as that small PPP loan it received last spring, which enabled a few of the staff members to remain on the payroll.

“We’re trying to figure it all out,” she told BusinessWest. “We’re hoping we have a good year for Bright Nights; if we have a good Bright Nights, that will take us into March or April. After that … we’ll have to see what happens.”

While the long-term picture is clouded by question marks, the immediate future is bright — or at least brighter — now that the agency has been given the green light to continue what has become a holiday tradition, not just for those in this region, but for those who travel to it to enjoy what has been recognized among the top holiday lighting displays in the country.

The pandemic has turned out the lights on a great many institutions and activities this year, but not these lights.

It won’t be exactly the same — nothing is in the middle of a pandemic — but this impressive show will go on.

 

—George O’Brien

COVID-19 Features

A Week’s Worth of Happiness at Work

By Pam Victor

“Good grief, woman. How can we think about happiness at a time like this?”

That’s what you must be thinking, and as a professional improv comedian and happiness coach, I’ve been asked variations of this question a lot lately.

And it’s a totally valid query. With restructuring, layoffs, kids schooling at home, and a worsening pandemic, we’re all being stressed and stretched to our limits. Unfortunately, there doesn’t seem to be much relief ahead any time soon.

Pam Victor

Pam Victor

How can we think about happiness at a time like this? My response is: how can we not? Improv trains me to continually jump into the unknown and to keep moving forward together with as much joy and ease and play and laughter as I can possibly cobble together. After all, what’s the other option? (I tried hiding under my covers for a while. It’s not a financially sustainable practice.)

Establishing happiness practices at work provides much-needed mental healthcare and resilience support for your teams. Because we’re collectively experiencing a marathon of stress, anxiety, and unpredictable change, with an unsettling amount of unknown ahead, prioritizing happiness at work is more than just a goofy team-building exercise.

According to research findings conducted by Julia K. Boehm and Sonja Lyubomirsky published in the​ Journal of Career Assessment,​ “happy people are more satisfied with their jobs and report having greater autonomy in their duties. They perform better on assigned tasks than their less-happy peers and are more likely to take on extra role tasks, such as helping others. They receive more social support from their co-workers and tend to use more cooperative approaches when interacting with others. Happy people are less likely to exhibit withdrawal behaviors, such as absenteeism … happy people enjoy greater workplace success, and engage in more behaviors paralleling success, than do less-happy people.”

The good news is that happiness also feels great. The even better news is that it doesn’t take much to stimulate significant well-being benefits. Whether you’re remote or at the office, here are a week’s worth of simple but profound happiness practices to bring some more joy, ease, and laughter to your workplace:

Meditation Mondays​: Start the week off with a shared, guided 10-minute meditation. Apps like Insight Timer, Calm, Ten Percent Happier, and YouTube provide a plethora of styles of meditation that start the week off with shared focus, grounding, positivity, and stress relief.

Treat-yourself Tuesdays​: Encourage employees to plan one experience of special self-care each week, such as picking up a favorite beverage from a coffeehouse they’ve been missing, a delicious dessert, an extra hour of sleep, a warm bath, or sitting in the sun during lunch hour. Generate ideas and support by inviting folks to share their treat-yourself treats on a Slack channel, e-mail thread, or during a weekly meeting.

Walking Wednesdays​: Everyone takes a 10- to 20-minute walk after lunch each week. This two-for-one happiness practice delivers both exercise and time in nature, both proven to benefit well-being. Make it a shared walk — either virtual or in-person — and now you’ve added in a third happiness enhancer: personal connection.

Thank-you Thursdays​: Each person sends a note of thanks to someone else on the team who brought them joy or ease over the course of the last week. Leadership can model the power of gratitude by incorporating regular, heartfelt thank-yous into every meeting in order to make it part of the company culture. Thank-yous could be public on a #ThankYouThursday Slack channel or private e-mails. To make it even more special, gift employees with a stack of company-branded thank-you notes to send actual handwritten thank-you notes, old-school style.

Gratitude is one of the most powerful happiness practices around. A regular gratitude practice is associated with improved mental and physical health, increased resilience, and stronger relationships. Other research has shown that managers who thank their team may result in employees feeling more motivated to work harder.

Friday Freshen Up​: In this simple but powerful practice, the team spends 10 minutes straightening up their work space at the beginning of the work day on Fridays. It’s astounding how impactful these 10-minute tidying sessions can be after a few weeks. It helps individuals start the day with an accomplishment, and it’s delightful to be greeted on Monday with a neater workspace. Add in some extra joy by playing 10 minutes of motivating, toe-tapping tunes (either in person or via Zoom) in order to make it a team-bonding experience.

It’s a common practice for improv comedians to tell their teammates, “I’ve got your back” before a show. At this challenging time, your team needs all the extra support they can get. By demonstrating the value of happiness at work, you’re showing the team you have their backs … and inviting them to bring their whole selves to their work.

 

Pam Victor is ‘head of happiness’ (president and founder) of Happier Valley Comedy; [email protected]

Coronavirus Features Special Coverage

Tightening the Safety Net

 

Andrew Morehouse stands in the warehouse at the Food Bank’s complex in Hatfield.

Andrew Morehouse stands in the warehouse at the Food Bank’s complex in Hatfield.

As Andrew Morehouse conducted his tour of the facilities at the Food Bank of Western Massachusetts, the sights and sounds helped tell the story that is emerging at this agency — and within this region — at a critical time.

The first thing to notice was the copious amounts of food of all kinds — from sweet potatoes in huge bins to hundreds of cases of canned tuna — now stored at the complex in Hatfield and in other locations as well, destined for local meal sites and food pantries. Indeed, the Food Bank is “over capacity,” as Morehouse, its executive director, put it, because of the soaring numbers of people who are now facing food insecurity in the wake of the pandemic, and the way government agencies, businesses, and individuals have responded to those numbers.

This capacity issue was clearly in evidence, with pallets of food stacked not only on the shelves and the floor space of the warehouse, but in the hallways leading to it as well.

“The warehouse is jam-packed; we’re storing food off site, and we’re moving it faster,” he explained. “We’ve brought on additional staff, we’ve purchased another van, we’re about to purchase another truck so we can move food as quickly as possible. The pandemic has put us over the top in a big way, so we’re looking at options for expansion.”

As for the sounds … well, the Food Bank was mostly quiet at the hour of this visit — late morning, approaching noon — but the few workers on the floor were talking about what they witnessed in the parking lot of Central High School in Springfield, where a drive-thru food-distribution site, supported in part by the Food Bank, has been established. The staffers were talking about long lines of vehicles, and how this has become a constant, or a new norm, with this initiative.

“The warehouse is jam-packed; we’re storing food off site, and we’re moving it faster. We’ve brought on additional staff, we’ve purchased another van, we’re about to purchase another truck so we can move food as quickly as possible. The pandemic has put us over the top in a big way, so we’re looking at options for expansion.”

Meanwhile, fewer people are working at the Hatfield facility, with many more working remotely because of the pandemic, and a host of safety protocols in place to keep those who do come in — and the public in general — safe.

In many ways, the Food Bank — and the hundreds of sites it serves — has become one of the enduring symbols of this pandemic locally. Indeed, just as the bread lines of the mid-1930s became an indelible image that came to represent the Great Depression, the long lines of motorists picking up food — it can no longer be distributed indoors — have come to symbolize this pandemic.

And as fall continues and winter approaches, need is only expected to grow, said Morehouse, who cited projections from Feeding America showing that, by year’s end, an estimated one in six residents in Western Mass. (perhaps 127,000 people) will be experiencing food insecurity, as opposed to one in 10 before the pandemic began, and one in four children. That would be a 40% increase in the number of people overall, and a more than 60% increase in the number of children.

In many ways, such numbers help tell this story. During the fiscal year that just ended Sept. 30, the Food Bank distributed 14.8 million pounds, or the equivalent of 12 million meals — a 23% increase over the previous year, compared to an average 6% increase year over year. Meanwhile, over the past seven months, the increase has been roughly 30% (from 7.3 million pounds to 9.5 million), much higher than the annual increase, obviously, because of the direct impact of the pandemic, and the highest seven-month spike in the agency’s 38-year history.

Behind the numbers, though, is the inspiring story of how the region and its business community have responded to the crisis, said Morehouse, adding that this response was quick and profound, and it is ongoing.

Sweet potatoes from local farms

Sweet potatoes from local farms are among the many items jamming the shelves and floor space at the Food Bank, which is over capacity due to spiking need.

The biggest question concerns what comes next, and it’s one that’s hard to answer, he noted, adding that many factors will go into determining where these numbers go in the weeks and months to come.

For this issue, BusinessWest talked at length with Morehouse about the mounting problem of food insecurity in the wake of the pandemic and how his agency has responded. Overall, he said this response “is how the safety net is supposed to work.”

Elaborating, he noted that the Food Bank has been able to meet soaring need because federal and state agencies have stepped up and put more food into the system, but also because the region has stepped up as well.

 

Food for Thought

As he talked about what has transpired since March, when the pandemic arrived in Western Mass., Morehouse said it’s been a period of adjustment — for area residents, for his agency, and even for area farms.

For many, the pandemic left them unemployed or in a position where they were earning less — although generous unemployment benefits certainly helped large numbers of people impacted by the downturn in the economy. But those unemployment benefits also had the unintended consequence of leaving individuals ineligible for SNAP (Supplemental Nutritional Assistance Program) benefits, creating a different kind of problem.

For the Food Bank, the first several weeks of the pandemic were chaotic, he said, as the agency mounted a response to what was happening — but had to do so in the middle of a health crisis.

“There was a lot of uncertainty about how to protect oneself from COVID-19, and suddenly, so many people lost their jobs or were furloughed,” he explained. “There was an outpouring of concern, of wanting to help, from people who don’t know that an emergency food network exists. So we were fielding calls from community groups from all across Western Massachusetts, saying, ‘we want to bring food to the Food Bank,’ or ‘how can we support you?’

“And it took a while for us to connect people to the pantries and meal sites in their communities as a way to support households that were at risk of hunger, because that’s who we work with,” he went on. “We don’t receive individuals who are in need of food assistance at our warehouse, and we don’t deliver food to households; we work through the existing network of about 165 independent pantries and meal sites, plus our own distribution programs to 51 senior centers every month, and on our mobile food bank, which has 26 distribution sites across all four counties on a biweekly or monthly basis.”

When asked how the Food Bank responded to that 30% spike over the past seven months, Morehouse replied with a quick “it wasn’t easy,” before elaborating.

Pallets of food destined for area meal sites and pantries

Pallets of food destined for area meal sites and pantries spills out into the hallways at the Food Bank, clear evidence of soaring need in the region.

“It took us a while to catch up, I’ll be honest,” he told BusinessWest, noting that there were a number of challenges to overcome, starting with disruption to what he called the “supply chain,” meaning donations of food to the agency from individuals and also, and especially, area supermarkets.

“There was a run on those supermarkets, so it was a significant hit,” he recalled, adding that roughly half the food distributed by the agency comes from the private food industry in the form of dry goods, produce, and close to 1 million pounds of meats frozen on the sell-by date.

Beyond this disruption to the supply chain, the Food Bank was impacted by shortages of staff and a loss of many of its distribution sites; several of them closed, including all brown-bag sites for elders and many mobile locations.

Slowly, over time, those sites reopened, while also changing how food was distributed, he noted, adding that as, the spring progressed, the Food Bank adapted to what became a new normal, both in terms of how it operated and with the numbers of people now facing food insecurity.

Indeed, over the period from March to August, the latest information available, the average number of individuals served each month grew to 107,000, Morehouse said, adding that 20,000 of those, or 19%, are people who have never come to a pantry or meal site.

And that percentage of new visitors was much higher, perhaps 40%, in the early weeks of the pandemic, when the layoffs and furloughs started climbing, and before those generous unemployment benefits kicked in. The numbers then leveled off for a time, but they started climbing again, he went on, adding that, when the new six-month numbers come out, the total people being served should far surpass that 107,000 figure.

 

Numbers to Chew On

Behind the numbers is the story of how this rising demand has been met with the help of a number of contributing sources — that safety net Morehouse described earlier.

These include the federal government, state agencies, area businesses, and philanthropic efforts like Jeff Bezos’ $100 million gift to Feeding America’s COVID-19 Response Fund.

“The federal government has stepped up — we’ve received considerably more federal food,” he explained, referring specifically to CARES Act appropriations that enable such agencies to buy more food. “And there was an outpouring of support from individuals, businesses, and regional and state foundations, as well as from Feeding America, the national network of food banks.”

The agency has also received more than $400,000, with another $123,000 coming, from the Massachusetts COVID Relief Fund, he went on, adding that a number of individual businesses, including Big Y and the Antonocci Family Foundation, have made sizable donations as well.

Part of the federal government’s response has come in the form of Farmers to Families Food Boxes, a new program through which the USDA’s Agricultural Marketing Service is partnering with national, regional, and local distributors, whose workforces have been significantly impacted by the closure of restaurants, hotels, and other food-service businesses, to purchase up to $4.5 billion in fresh produce, dairy, and meat products from American producers of all sizes.

Mapleline Farm in Hadley is one of several local farms in the region that have adjusted with the pandemic, now supplying the Food Bank with milk in family-sized packaging.

This program supplies boxes of fresh fruits and vegetables, dairy products, and meat products, which distributors package into family-sized boxes, then transport them to food banks, community and faith-based organizations, and other nonprofits serving Americans in need.

The program has benefited several area farms, said Morehouse, noting that those supplying the boxes are purchasing products from many area farmers who were severely impacted by their inability to sell to restaurants, colleges, and universities closed by the pandemic.

“It took a while for some of these farms to adapt, but many of them have,” he said, citing, as one example, Mapleline Farm in Hadley, a dairy farm whose name and logo were on countless boxes of quart containers of milk in the Food Bank’s warehouse.

As for the future, Morehouse said the contributions that have poured in from individuals and businesses have left the organization in a solid position financially for this current fiscal year, one in which overall need is expected to continue growing, while the economy is projected to continue struggling.

Meanwhile, question marks remain about the ongoing level of support from state and federal governments, as well as from individual contributors, he said, citing the potential for donor fatigue as the pandemic wears on.

“The state is operating on a month-to-month budget, so we’re not even sure if we’re going to be level-funded for a program that we’ve come to rely on for 30% of our food since 1992,” he told BusinessWest. “And the federal government has not passed another stimulus package, so we’re anticipating a decline in federal support.

“We have a jigsaw puzzle of public and private emergency food resources that rely of federal and state funding and private charitable support,” he went on. “We rely on all those sources of support to get the food we need and the resources we need to keep operations afloat.”

One of the important pieces of that puzzle is Monte’s March, the fundraising walk from Springfield to Greenfield that was launched by radio personality Monte Belmonte to benefit the Food Bank. Belmonte has seen the ranks of people joining him on his late-November trek grow steadily over the years, as well as the amount raised for the agency, but that first trend won’t continue this year, as the pandemic is forcing organizers to encourage individuals to support the march remotely — although the top-performing teams when it comes to generating donations will be able to march.

But, given the urgent need for support, they are hoping the second trend will continue. The goal for this year has been raised from the $333,000 mark set last year — each dollar donated buys three meals, so the goal was to fund 1 million meals — to $365,000, or $1,000 a day, or 4,000 meals a day (one dollar now buys four meals, due to greater efficiency).

 

Hard to Digest

Looking at the projections from Feeding America for the next several months, the ones predicting that one in six area residents will be food-insecure, Morehouse had his doubts initially about whether things would really get that bad here.

But now, he’s thinking they may be realistic — painfully realistic, to be more precise — especially when one ponders the unanswerable questions concerning when the pandemic will subside and to what degree the federal government will keep on printing money.

One thing Morehouse does know is that the Food Bank will continue to pivot and respond proactively to the ongoing crisis — right down to finding more warehouse space.

 

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

Features Special Coverage

A ‘Family Business’

Tom Hebert says his novels are a way of paying back the Marine Corps for all it has given him.

Tom Hebert says his novels are a way of paying back the Marine Corps for all it has given him.

The story sounds like some of the fiction that Tom Hebert now devotes much of his non-working time to writing.

But it’s not.

Flashing back to when he was in high school, Hebert said he and his father, William, were having a talk about what he might do with his life, career-wise. The elder Hebert had just used his last match to light a cigarette, and after doing so, he noticed the ad on the back of the matchbook: ‘Become a CPA.’

“He handed me the matchbook cover, and I said, ‘OK, I’ll look into it,’ said Hebert, who would earn a degree in accounting at American International College. Eventually, he would join what was then one of the ‘Big 8’ accounting firms, Lybrand, Ross Bros. & Montgomery, and subsequently work in a number of other settings in Connecticut and Massachusetts, including Cambridge Credit Counseling, which he currently serves as chief financial officer.

“Discipline and leadership … that’s what I took away from the Marines. It shows in the respect I have for people, including the people who work for me — treating them well, treating them with respect.”

But while the saga of how he wound up in financial services is intriguing and makes for good reading, Herbert’s story is largely about what else he’s done with his life, starting with his time in the Marine Corps, which included a stint in Vietnam in 1970, as that conflict was beginning to wind down in many ways (much more on that later).

More recently, a second career has emerged: writing fiction, specifically about Marines. His first book, The Remains of the Corps, Volume I: Ivy & the Crossing, which he authored under the pseudonym Will Remain (with Remain being an anagram of Marine), came out early this year.

Covering the period from 1899 to 1917, several months before the U.S. entered World War I, it tells the story of Kenneth Remain (Will’s grandfather, who was born in Worcester and educated at Harvard), and the love triangle he enters along with Harvard classmate Lawrence Blakeslee and the “beautiful KatyKay Mulcahy.” The reader is also introduced to the 57 enlisted men of the fictional Fourth Platoon of the 87th Company of the true-to-life Third Battalion of the Sixth Marine Regiment.

“These gentlemen would have used a very large vocabulary, and I had to develop my vocabulary tremendously to have it fit for these two gentlemen .”

“When Kenneth takes KatyKay away from Lawrence, it creates problems between the two families that last for decades,” Hebert said, describing the plotline for the first book and those that will follow. “There’s this interaction between the two families that will last right up ’til the Vietnam War.”

The book is selling fairly well, but Hebert admits to not yet reaching the ‘break-even’ point that all self-publishers aspire to. Originally in hardcover, there’s now a paperback version of Remains of the Corps, as well as an e-book, and an audiobook will soon follow.

A second book is in progress, one that will take the story into the battlefields of France in World War I, with subsequent volumes covering the 1920s and ’30s. Eventually, his fictional characters will fight in World War II, which his father did, having taken part in the epic battle on Iwo Jima.

His father’s service — and his own — helped inspire the books, said Hebert, who told BusinessWest his writing is a way to give back to the Marine Corps, which he said gave him so much.

When asked what, specifically, he said the Corps gave him discipline, something he’s called on in all facets of his intriguing life, as well as some moments he won’t forget.

“Discipline and leadership … that’s what I took away from the Marines,” he explained. “It shows in the respect I have for people, including the people who work for me — treating them well, treating them with respect.”

Thus, Hebert’s saga represents the perfect Veteran’s Day story for this business publication: it’s a tale of military service and a family’s devotion to the Marine Corps, but also one about business — the one Hebert joined with some help from that matchbook cover, as well as the one he’s in now — and the challenging world of publishing.

 

The Write Stuff

“That’s the final straw!” Kenneth Remain said angrily, as he sat down heavily at a table in Jimmy’s Lunch. The melting snow on the brim of his boater and the shoulders of his benny testified to the fact that a sockdologer of a storm had clobbered Boston, an affront to the spring solstice of two days hence; though waning, the storm had not breathed its last.

Those are the first lines of The Remains of the Corps, Volume I: Ivy & the Crossing, and they provide not only a glimpse of Hebert’s mostly self-taught writing style, but also the immense amount of research that goes into writing a book set more than a century ago.

Tom Hebert says his second novel is almost fully researched and one-quarter written

Tom Hebert says his second novel is almost fully researched and one-quarter written. He plans six volumes in all to tell the story of the Remains.

Indeed, before he could pen a story set in 1917, Hebert said he needed to know the vocabulary of 1917 — specifically the vocabulary used by people attending Harvard, hence words like ‘boater,’ a type of straw hat; ‘benny,’ a greatcoat; and ‘sockdologer,’ a synonym for any word connoting ‘whopper’ or ‘defining.’

“People talked much more formally back then — they used the king’s English,” he explained. “These gentlemen would have used a very large vocabulary, and I had to develop my vocabulary tremendously to have it fit for these two gentlemen.

“Any time my wife and I were out at bookstores and flea markets, I would pick up books on vocabulary, idioms, and more,” he went on. “And as part of my training, I went through those books and selected words, phrases, thoughts, and philosophies, and I would say, ‘I could use this in one of my books.’”

Several years of research and work learning how to write fiction went into The Remains of the Corps, Volume 1, said Herbert, noting, again, that his decision to dive into what he expects will become a six-book set was inspired by the service of his own family and a firm desire to give something back to the Corps.

With that, we’ll do what fiction writers often do: we’ll flash back — first to 1945, when William Hebert was ending his lengthy tour of duty with the Marines. He enlisted just after Pearl Harbor and served throughout the war — and even after it ended, as part of the peacekeeping force in Japan. Upon returning home, he built a house in Chicopee and went to work as a pressman for Springfield Newspapers, retiring at age 62.

“I work partly because I enjoy working — I thoroughly enjoy my position here. But also because it enables me to fund the things that I want to do in life — one of which is writing.”

Hebert said his father, like many who fought in World War II, didn’t talk much about his service. “But he was always singing the Marine Corps hymn when I was a boy,” Tom recalled, adding that, while his father never pushed him to join the service or that specific branch, he found himself signing up.

That was in May 1968, just a few months after the Tet Offensive, when the Vietnam War was in some ways at its height. Hebert had just earned that accounting degree at AIC, and attended Office Training School for 10 weeks, and then another five months at a specialty school for officers.

His military occupational specialty was to be a tank officer, so he then went to Camp Pendleton in California for two months. Around that same time, he got married and was told he could spend another 18 months in California.

Tom Hebert began his service in Vietnam a few months after the Tet Offensive

Tom Hebert began his service in Vietnam a few months after the Tet Offensive in 1968, when the conflict was at its height.

But there was a quick change in plans, as he and several other tank officers were told there was an urgent need for their services in Vietnam.

“When we arrived at First Marine Division and met with the personnel officer, he said, ‘I don’t know why they sent you all here — I have three times as many tank officers as I need,’” he recalled. “That’s typical of the military, and my father had warned me about the bureaucratic aspects of being in the service.”

With his background in accounting, Hebert was eventually sent to the Central Service Agency, essentially a supply position — and wasn’t too happy with that assignment.

“After being there a short time, I went to the personnel officer and said, ‘I can’t do this — my father was in the Marines, he served at Iwo Jima … this is not why I joined,” he recalled. “He kicked me out of his office and said, ‘you’ll go where you’re told.’”

So he spent a year in Da Nang as — in the language of that time — an REMF, which stands for rear echelon mother… well, you can fill in the rest. Or, as they also said, ‘in the rear with the gear.’

Still, that time gave him a deep appreciation of the Corps and some valuable life lessons about leadership and teamwork.

When he came back home, he had a case of what was and still is known as ‘survivor guilt,’ which prompted him to publish a Vietnam War newsletter and also sell books through what was known as the Vietnam Book Store, a mostly mail-order operation.

 

Turning the Page

Longing to do more, Hebert eventually settled on the idea of writing about fictional Marines, but with art imitating life in many ways, especially when it comes to the Marine Corps being a generational phenomenon, or what Hebert calls a “family business.” It was that way for his family, and for the one he’s writing about as well, in stories told by the youngest generation.

That would be Will Remain, whose background is similar to Hebert’s, but with some important differences. Remain graduated from Harvard, not AIC, and upon graduation enlisted in the Marines and attended Officer Candidates School and Basic School in Quantico, Va. Instead of serving in the rear with the gear, he fought at Khe Sanh in 1967 and the Battle of Hue City during the Tet Offensive of 1968.

Hebert said he was inspired in many ways by the war novel Once an Eagle, written by Anton Meyer. A New York Times bestseller, it has been a favorite of American military men and women since it was penned in 1968, he noted.

“That book just fascinated me,” he told BusinessWest. “It was about the Army, and it covered several decades of one officer’s time. That book really inspired me to write.” Indeed, Hebert’s first forays into writing were non-fiction works about Meyer and his books.

He then embarked on the first installment of his novel, which wound up taking him a decade or so to write and prepare for publication. It includes dozens of illustrations by Tara Kaz that help bring the individual stories to life.

As for those stories, or the elements of his novels, he said the process of weaving them together is very much like that of putting together a jigsaw puzzle — which happens to be another of his hobbies; he said he’s put together more than 75 of them, with his favorite (unsurprisingly) being an image of the Iwo Jima Memorial in Washington.

“I have tons and tons of research material, and it’s all in pieces,” he went on, adding that, as he read books on history and vocabulary, for example, he would tear out the pages and keep them for future reference. “I take all those pieces — and we’re talking about an incredible amount of information — and put it together in a book.”

His second book is 95% researched and about 25% written, he said, adding that this segment details the battles in France during World War I. Book three, meanwhile, covers the period between the wars, and book four will likely take place on a fictional island in the Pacific during World War II.

Hebert writes when he’s not working, which means nights and weekends, and at age 73, he intends to keep on working — for several reasons.

“I work partly because I enjoy working — I thoroughly enjoy my position here,” he explained. “But also because it enables me to fund the things that I want to do in life — one of which is writing.”

As noted, his first book is off to a decent start, with about 300 copies sold and a far less expensive paperback now available. He’s optimistic, and excited, about the audiobook version, which will be read by noted narrator Grover Gardner, who, coincidentally (or not), has also read Once an Eagle.

“My hope, with the audiobook being read by someone so well-known, is that this will bring some attention to it and sell more books in print — that’s my goal, anyway,” he said, adding that this is far more an enjoyable hobby than a money-making enterprise. “I work to write.”

 

The Last Word

Hebert’s life has taken a number of twists and turns since his father glanced down at that matchbook cover and eventually handed it to him.

As noted at the top, some of it, including that episode, does sound like fiction, which is appropriate, said Hebert, because life really does imitate art in many ways.

His art certainly does. It’s a collection of tales about people. But it’s also about a business — a family business.

That’s what the Marine Corps became for him — and for those in the Remain family — and it’s a success story on a number of levels.

 

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

Community Spotlight

Community Spotlight

Amy Cahillane says the DNA’s advocacy work has surpassed its events programming this year

Amy Cahillane says the DNA’s advocacy work has surpassed its events programming this year — because advocacy is needed, and events are few.

For the past four years, Amy Cahillane has led the Downtown Northampton Assoc. (DNA) in its many efforts to boost vibrancy in the city’s center.

The DNA typically handles such things as city plantings and holiday lights, and sponsors events that bring visitors to downtown, like Summer Stroll and Holiday Stroll, Arts Night Out, and sidewalk sales.

Note that word ‘typically.’ Because this hasn’t been a typical year.

“The pandemic changed it completely,” said Cahillane, the DNA’s executive director. “We usually focus heavily on events — it’s sort of our centerpiece. In light of COVID, I’d say 98% of our events were unable to happen. Arts Night Out is a monthly gathering where we invite lots of people into a small space to share food and drinks. That was one of our first COVID casualties — there’s no way to do that safely.”

But the DNA’s second major role is advocacy, making sure the downtown community has a voice at City Hall and that people feel their voice is heard, through public meetings and community forums on issues that impact businesses. That function was magnified in this unusual year.

“As everything changed, we were forced to change our focus because our small-business community is in desperate need of help, as is every other downtown in this area,” she told BusinessWest. “Even had our events not been canceled, it became clear pretty quickly we’d have to change our focus to advocacy at both the state and local levels, just to keep businesses afloat.”

Much of that advocacy came in the form of pushing for state and local aid, while other efforts were narrowly targeted, like making sure downtown parking was altered so restaurants could expand outdoor seating — “anything we could think of that could help them carry on through this trying to time, until we see some light at the end of the tunnel.”

And the city’s leaders have been responsive, Cahillane said, from a round of direct emergency grants to the business community to making the changes needed to bolster restaurants.

“They stepped up right away to work with our organization and downtown restaurants to make it possible to have outdoor seating, and make it last as long as possible. They got that up and running pretty quickly, and the License Commission was very fast turning around approvals for those who wanted to serve liquor outside.”

Debra Flynn, who owns Eastside Grill, was among the first downtown restaurateurs to pivot to curbside takeout and delivery once eateries were forced to shut down in early spring. “We had no idea how to do it,” she said, adding that it was important to buy the right containers to keep food warm and make sure meals were presented with care, even in the boxes.

“I can’t complain right now; we’ve had such wonderful support from our community,” she said, noting that she was able to set about 30 seats outside and eventually bring patrons back inside as well. “But I’m nervous going forward.”

“It’s definitely remained slower than the pre-COVID days, but each month, we have been seeing a smaller margin in the percentage we were down from last year. That’s helped me stay optimistic.”

That’s because the weather is getting colder, and while regulars are comfortable with the safety protocols being taken inside, she worries that folks who haven’t visited recently might not want to do so during flu season. And while the governor’s new mandate that businesses need to close by 9:30 p.m. doesn’t affect Eastside, it does impact the operations of other downtown restaurants. “They’re very nervous and upset about this whole thing,” she noted.

 

Shifting Winds

Alana Traub, who owns Honey & Wine, a clothing shop in Thornes Marketplace, has had a worrisome time this year, too.

“Everything changed for my business with the pandemic, when all businesses closed for quite a while,” she told BusinessWest. “When it finally did reopen in June, it was extremely slow going; I think people were really nervous to go out, and maybe they didn’t even know if we were open or not.

“Since then, it’s definitely remained slower than the pre-COVID days, but each month, we have been seeing a smaller margin in the percentage we were down from last year. That’s helped me stay optimistic.”

If there’s a downtown that’s well-positioned to rebound after the pandemic, Cahillane said, it’s Northampton.

“Even among my circle of friends, we are dying to go back out to restaurants, go bar hopping,” she said. “I think these businesses downtown are doing everything they can to hang on.”

Perhaps the economic shakeup — and some business closures that have followed in its wake — will present opportunities for some new faces to enter the downtown scene, she added. “A pandemic seems an odd time to start a business, but we’ve seen several open up; we might see a new round of creative, exciting businesses downtown.”

Lindsay Pope made the jump over the summer, purchasing Yoga Sanctuary, also at Thornes, from former owner Sara Rose Page on Aug. 1. A former member at the studio, Pope said she decided to become a business owner in this uncertain time because she feared Page may not have found another buyer.

“I feel like this time is incredibly liberating,” Pope said. “What do I have to lose? The alternate was that we could have lost this space, and instead, we’re going to give it another shot.”

With the times in mind, she launched not only reinvigorated studio programming in September, but also new online programming and an online video-library platform. “We’re going to try to evolve to meet the needs of the times and the next generation. That’s what we’re all being called to do right now in the chaos that’s happening.”

Cahillane said many other businesses have pivoted as well — although she admitted she’s a little sick of that word.

“Restaurants that never did curbside were nervous to try it, but our community showed up and started ordering curbside. Stores that never did local deliveries wondered if people would take advantage of it, but they did. People definitely have been incredibly supportive of downtown — the question is whether that’s enough.”

 

Holding Pattern

Before the pandemic struck, the DNA — which cites beautification among its top goals, along with programming and advocacy — was coming off a couple of years that saw a series of major projects on the Pleasant Street corridor, from a $2.9 million infrastructure upgrade to make the street safer and more navigable for motorists, bicyclists, and pedestrians to the completion of the roundabout at Pleasant and Conz streets and a number of residential and mixed-use developments along the thoroughfare.

To say 2020 has been a different sort of year is an understatement, although traffic has returned to some degree in recent months, and many businesses, including those in the retail marijuana trade, continue to do well. But anxiety lingers for many.

“I think everyone is concerned,” Cahillane said. “There is certainly more traffic than there was in March, April, or May, for sure. But winter is coming. It’s easy right now to park your car and walk outside, or enjoy some coffee on the sidewalk, when it’s sunny and pretty and the leaves are changing.

“But I think the first sign of snowfall will change that picture pretty dramatically,” she went on. “Are people going to be comfortable shopping indoors in the winter? I don’t know. Or sit inside a restaurant in the winter? I don’t know. And because so much is unknown about COVID, are people going to be extra anxious during flu season, when they don’t know if the person next to them has a cold or something more? There are so many unknowns. People are definitely concerned.”

Yet, Traub senses optimism from other business owners in Thornes and downtown in general, not because the pandemic is close to ending, but because Northampton is a strong enough business community to fully rebound once it does.

“That’s the general consensus,” she said. “I think everyone is also being realistic because no one knows what’s ahead. This is so unprecedented.”

Still, she moved her five-year-old business here from Franklin County for a reason. “I would call this the shopping destination in Western Mass. It’s definitely been a lot of fun, and I’ve been happy with my move to Northampton.”

And waiting for a time when the city is truly on the move again.

 

Joseph Bednar can be reached at [email protected]

Features Special Coverage

A Season on Ice

Nate Costa, president of the Thunderbirds

Nate Costa, president of the Thunderbirds

The wall opposite Nate Costa’s desk is covered in a wrap depicting action from the American Hockey League (AHL) All-Star Classic, played at the MassMutual Center in January 2019 — probably the high point of the five-year re-emergence, and renaissance, of professional hockey in Springfield.

Costa pointed toward that wall several times as he tried to explain just how the Springfield Thunderbirds, which he serves as president, might place spectators so they are at least six feet apart — if, and it’s mighty big if, the governor, the city, and whoever else might need to sign off on such a plan gives the proverbial green light. And he also pointed while talking about the many subtleties and challenges that go into such an exercise.

“It’s almost like a puzzle,” he explained. “We have 6,700 seats, and our season-ticket holders are typically jammed into the best seats. All our center-ice seats are completely taken … so what do you do in a six-foot distancing model? — everyone can’t get the seat they would normally want to have, and that’s just one of the challenges.”

As he talked with BusinessWest on Oct. 15, five days after the 2020-21 season was supposed to start, Costa acknowledged that trying to put together this puzzle is just one of the myriad questions and challenges he and a now considerably smaller staff are working to address.

“The ownership has given a commitment to Springfield — we’re not going anywhere. It’s going to be a challenging year for us, like it is for everyone else, but the commitment is there to get through this year and plan for the long term. We’ll get through this … it’s just going to be tough.”

Indeed, Costa admitted he has no real idea if or when he might be able to put such a plan into action. In reality, he has no idea when or under what circumstances hockey might again be played on Main Street. He was told in July by the National Hockey League, parent to the AHL, that games might be able to commence by early December, but he’s very doubtful about that date.

He believes January or even February is a far more likely start time. But beyond that, he cannot say with any degree of certainty how — and how many — games might be played, and how late into 2021 the season might go. Instead, there are only question marks — many of them, involving everything from if and how many fans can sit in the stands to if and how this team can travel to away games in other states, let alone Canada.

All these questions, most of them difficult if not impossible to answer at this juncture, make this a difficult, very frustrating time for Costa and all those involved with a franchise that had become one of the feel-good stories in Springfield over the past several years.

games might be played in early December

While the AHL is expressing hope that games might be played in early December, Nate Costa, president of the Thunderbirds, believes January or early February is a more likely target for a return to action at the MassMutual Center.

Under Costa’s stewardship and the backing of a large, committed ownership group, Springfield had gone from a city without hockey after the Falcons departed for Arizona more than five years ago, to one with a franchise that was not only filling the MassMutual Center with increasing regularity, but also becoming part of the fabric of the region.

Turning the clock back just seven months or so, although it seems like an eternity, to be sure, Costa said the team was clicking on all or most cylinders, meaning everything from ticket and merchandise sales to creating strong partnerships with a number of area businesses.


Listen to BusinessTalk with Nate Costa Podcast HERE


“We were, fortunately, in a really good position when the season ended last year,” he noted. “We were ahead of budget, we were on track to make a profit, which was three years in the making. We were in great shape — we had nine sellouts through March last year, which was our previous record, and we had three weekends left and were expecting three more sellouts. The business was in great shape.”

In the proverbial blink of an eye, though, everything changed. The season, and the MassMutual Center, were shut down. Initially, the Thunderbirds, like most businesses closed down by the pandemic, thought it might be a matter of several weeks before things went back to something approaching normal. As it became clear this wouldn’t be the case, the team — again, like many other businesses — had to make some hard decisions and eventually furlough several employees; once a staff of 19, it is now down to seven.

“The thing that has been frustrating and challenging — to everyone, but me in particular — is that we don’t have a lot of control over much of anything at this point. You’re beholden to the state and other states and also to the league … you can have all the best plans in the world, but if we don’t have the ability to do it and do it safely, then it’s going to be a challenge.”

Those who remain are trying to carry on as they did seven and half months ago — selling season tickets, planning events, working within the community, and building the team’s foundation. But it’s all different. For the most part, the staff is trying to prepare for contingencies, plan what can be planned, and, perhaps above all, work tirelessly to remain relevant while waiting for games to commence and the pandemic to run its course.

“The ownership has given a commitment to Springfield — we’re not going anywhere,” Costa said. “It’s going to be a challenging year for us, like it is for everyone else, but the commitment is there to get through this year and plan for the long term. We’ll get through this … it’s just going to be tough.”

 

Setting Goals

When asked about how he’s apportioning his time these days, Costa said he spends much of it on the phone.

Many of those calls are to and from other team executives in the AHL — he knows most of them going back to the days when he worked for the league — who are looking to compare notes and share thoughts on how to deal with a situation unlike anything they’ve encountered.

“I’m seeing what other teams are doing, what they’re hearing from their states, and what the temperature is for us to play in the upcoming year,” he explained. “There’s a lot of conversation going on about how we can pull this off and how we can do it the right way. It’s a challenge that none of us have faced in our careers, and there’s no way to really plan for it.”

In addition to other AHL officials, Costa and others within the league are also talking with leaders from other sports, including the National Football League. From these conversations, they’re learning it’s been difficult to sell even those comparatively few tickets that states like Florida, Texas, and Missouri are allowing teams to sell.

Indeed, while the popular notion might be that there is considerable demand for those few seats, and that teams would struggle to figure out who might be awarded them, that is certainly not the case.

“They’re having a hard time selling the limited inventory that they have because people are just not mentally ready for it yet,” Costa said. “Even the Cowboys are facing challenges; they’ve had to comp a lot of tickets. The Dolphins, the same thing. That’s what we’re seeing.”

2019-20 Thunderbirds’ schedule

Signage outside the MassMutual Center still displays the 2019-20 Thunderbirds’ schedule because the slate for this year remains clouded by question marks.

This harsh reality brings yet another layer of intrigue, and questions, to the discussion concerning just when, if, and under what circumstances the AHL might be permitted to carry out its 2020-21 season. Indeed, while the league wants to commence action and get fans back in the arenas, if they start too early, fans will not be eager to come back.

And the harshest reality of all is that this league — and the NHL as well — simply cannot operate for any length of time without fans in the stands.

The AHL is a league with no national television contracts and only some smaller, regional deals. The vast majority of revenues come from sponsorships and sales of tickets, concessions, and merchandise. And without fans in the stands … well, it’s easy to do the math.

Meanwhile, the inability to play in front of fans is also presenting a major challenge to the parent league, the NHL, whose franchises own the bulk of the teams in the AHL, with a dozen or so, including the Thunderbirds, being independently owned.

“Even though the perception is that the NHL is this huge entity that can just sustain losses, with them not having the ability to put fans in the stands, that impacts everything,” he explained. “That’s the trunk to the revenue tree. If you don’t have fans, it’s hard to sell sponsorships, and you can’t sell merchandise and concessions. And at our level, that’s what really drives our business — it’s butts in seats.

“In this league, it’s crucially important to have fans in the arena,” he went on. “And that’s what we spent four years doing — rebuilding the fan base and packing this arena so that our business would be much more financially solvent.”

But playing games without fans in the stands remains one of the options moving forward, said Costa, calling it a last resort, but still a possibility, especially if he can negotiate with one of the local TV stations to televise some of the games. And talks along those lines are ongoing, he told BusinessWest.

The hope, though, is that, by January or February, the state will allow fans in the arenas with a six-foot-distancing model, he said, referring again to that image on his wall.

“It’s not going to be a ton of people, maybe 1,200 to 1,500 people from what we’re doing with our modeling,” Costa continued. “But at least it would get us started, and then the hope would be that, as the spring would move along, we’d be able to bring more bodies into the building.”

That’s the hope. But Costa and his team, as noted, are preparing, as best they can, for a number of contingencies.

“The thing that has been frustrating and challenging — to everyone, but me in particular — is that we don’t have a lot of control over much of anything at this point,” he said. “You’re beholden to the state and other states and also to the league … you can have all the best plans in the world, but if we don’t have the ability to do it and do it safely, then it’s going to be a challenge.”

 

Knowing the Score

Next spring will mark the 50th anniversary of the Calder Cup championship run authored by the team known then as the Springfield Kings, the minor-league affiliate of the then-fledgling Los Angeles Kings.

Costa said the team has been making plans to honor that squad and its accomplishment with a throwback game featuring the Kings’ colors and logos, an on-ice ceremony featuring surviving members of that team, and other events.

Now, most of those plans, as well as those to mark the fifth anniversary of the Thunderbirds themselves, are in limbo, like just about everything else concerning the 2020-21 season.

Indeed, even as Costa and his team try to prepare for the new season, there are still so many things beyond their control, especially the virus itself. By most accounts, a second wave has commenced, with cases on the rise in a number of states. Some of those states, and individual communities, have already put a number of restrictions in place as part of efforts to control the spread of the virus, and there may be even more in the weeks and months to come.

The ones already in place create a number of logistical concerns.

“Rhode Island has a 14-day mandatory quarantine, so if we play Providence, how does that work?” he asked rhetorically. “Meanwhile, the Canadian border is closed; we have Canadian teams, including one in our conference, Toronto. And then, there’s the challenge of air travel — Charlotte is in our division, and we would normally go there once or twice a year. How do you do that, and how do you do it safely?

“There’s a lot of things that we as a league have to work through,” he went on, and while coping with these day-to-day questions and challenges, he stressed the need to think and plan for the long term. He said the pandemic will eventually be something to talk about with the past tense, and he wants to properly position the franchise for that day, even while coping with the present challenges.

This mindset has dominated the team’s actions with regard to everything from refunding tickets sold but not used last season to managing the partnerships that have been developed over the years with corporate sponsors.

“We reached out to every season-ticket holder and gave them a number of options,” he said in reference to the seven games they missed at the end of last season. “They could roll the credit over to the following year, they could donate to our foundation, or, if they didn’t want to do any of those, we would be happy to give them a refund because, at the end of the day, it’s the right thing to do.

“None of us planned for this, so from a business perspective, we thought that any sort of pushback or anything like that is not the way to be,” he went on. “We want to make sure we’re doing the right thing for the people who have supported us from the start, and we’ve been proactive and honest because, at the end of the day, it’s so important for us to be authentic through this process because we’re not the only ones dealing with this — everyone has their own challenges.”

This approach, coupled with the team’s strong track record over the past several years, has helped the organization maintain its strong base of support, said Costa, adding that the Thunderbirds have been able to retain roughly 85% of their season-ticket sales from last year, despite the question marks hovering over the upcoming season.

“It’s been incredible to see the level of support we’ve been given,” he said. “I think people were really seeing what we are able to do in the community and how much of an impact we were having. We’ve been given commitments by people that they’re going to be here when we’re back.”

Looking ahead to the day when the pandemic is over and he can once again focus on selling out the MassMutual Center, Costa is optimistic about his prospects for doing just that.

“I think it’s going to take some time — it might take until the summer for those people who aren’t diehards to come back to our arena, but I think that, by next fall, we’ll be able to pack this place again,” he told BusinessWest. “I think there’s going to be a lot of pent-up demand, and I think we’re positioned well. I think that, when people are ready to get back in the arena again, they’re going to think twice about driving to Boston and paying $300 to $400 for a ticket when they can get the same experience and see really good hockey right here in our area for a fraction of that price.”

 

Taking Their Best Shot

As he walked and talked with BusinessWest while showing off some of the many other wraps adorning the team’s offices on Bruce Landon Way, Costa stopped and reflected on the fact that last year’s schedule is still posted on the wall outside those facilities.

That schedule has become symbolic of how the NHL and the Thunderbirds have become frozen in time in some respects. No one can say when there will be new games on the slate, how the games will be played, or where.

What Costa does know is that, sometime soon — just when, he doesn’t know — there will be a new schedule in that space. Things will be different for some time to come, and the team is certainly not going to pick right up where it left off when the music stopped last March.

But he firmly believes that the solid foundation laid before the pandemic entered everyone’s lives has the team in a good place for when we’re all on the other side of this crisis.

 

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

Community Spotlight Special Coverage

Community Spotlight

By Mark Morris

Charlie Christianson

Charlie Christianson says many local businesses have had to pivot and be nimble in the face of COVID-19.

Despite all the challenges a pandemic brings, Mary McNally says, town officials and business leaders in East Longmeadow are looking forward with a sense of optimism.

After serving in an interim role, McNally became East Longmeadow’s permanent town manager in December 2019 — just before every town in America began dealing with the effects of COVID-19.

Even though Town Hall has been closed to the public since mid-March, McNally said the staff has worked hard to maintain town services to the public and keep projects moving.

“All of our Planning Department functions, such as petitions and site-plan reviews, are being conducted — business as usual,” McNally said. “That is, if you accept Zoom meetings as business as usual.”

According to Charlie Christianson, those types of adjustments have enabled the town and its businesses to find their way during these difficult times. Christianson, board president of the East of the River Five Town Chamber of Commerce, said COVID-19 forced a number of companies to pivot and find new ways to stay viable. He cited Go Graphix, maker of signs, vehicle wraps, and other marketing materials, as an example of an East Longmeadow company that made a big adjustment and found success by doing so.

“When business fell off at the beginning of the pandemic, Go Graphix pivoted early to make plexiglass partitions as well as signs to help communicate social distancing and mask wearing. Now, it’s a big part of their business.”

In addition to his work with the chamber, Christianson runs CMD Technology Group, a provider of IT solutions and support. With so many people working from home, his business was able to pivot to set up workers who needed remote connections.

“We have seen a lot of activity in our remote-access business where we help companies get their remote employees into their online system in an effective and secure way,” he explained.

“All of our Planning Department functions, such as petitions and site-plan reviews, are being conducted — business as usual. That is, if you accept Zoom meetings as business as usual.”

Chamber member Steve Graham, CEO of Toner Plastics, said several of the products his company makes are considered essential, a designation that kept his workers busy all year. Perhaps the most notable product Toner makes these days is the elastic for N95 masks.

“Since the pandemic, you can imagine the demand for that product went through the roof,” Graham said, adding that, during a time when other companies were cutting back due to COVID-19, his company had to quickly ramp up for more production.

With Toner facilities in Pittsfield and Rhode Island, as well as in East Longmeadow, Graham appreciates the opportunity to continue his operations during these challenging times. “We’re fortunate that we are able to keep people employed and continue to ship to our customers; best of all, none of our employees have been inflicted with COVID-19.”

 

Go with the Flow

Despite the pandemic, municipal projects in East Longmeadow keep moving. The town applied for a $600,000 grant through MassWorks to improve sewage outflow where it connects to the Springfield system, allowing East Longmeadow to more accurately monitor what gets sent to Springfield.

“While it’s not a glamourous project, it’s a big undertaking and represents a real improvement in our town’s infrastructure,” McNally said.

After years of applying to the Massachusetts School Building Authority, East Longmeadow is in the eligibility period to explore funding for a new high school. McNally said this milestone is significant because it represents the first step in the process to eventually replace the current, 60-year old facility.

For many years, residents have been concerned about the site of the former Package Machinery site, with any potential development hampered by its industrial zoning status. McNally said the Town Council and the Planning Board have recently taken action to change the zoning status to mixed use, which would allow residential as well as commercial buildings to locate there.

“While no official project is in front of the Town Council, one development that has been discussed could include single-family homes, condominiums, apartments, and light-use business entities,” McNally said. “The idea is to have a new walkable neighborhood near the bike trail and the center of town.”

To keep projects like these moving forward, McNally and her staff are working to develop a new master plan for East Longmeadow. The last master plan for the town dates back to 1976, prompting her to put this effort high on the must-do list. The first phase of the plan is scheduled to be complete by June 2021.

A master plan allows the town to move from talking about projects to getting them done. One example is Heritage Park, where architect drawings were generated in 2016 to add athletic fields, an amphitheater, and other improvements. The $5 million price tag has kept the redevelopment in the discussion stage.

McNally said including Heritage Park in the master plan improves its chances of eventually reaching completion. “It’s a beautiful resource, and we want to capitalize on it to make the park available to everyone, but right now it’s still a work in progress.”

“We have seen a lot of activity in our remote-access business where we help companies get their remote employees into their online system in an effective and secure way.”

During the pandemic, the chamber has been successful in bringing people together to talk about the challenges of COVID-19 and a variety of business topics. Christianson credits the chamber’s ability to quickly embrace the virtual world.

“To say we didn’t skip a beat would be an exaggeration, but we’ve done a pretty good job to help our members and to keep a consistent value proposition for them.”

He noted that the chamber has even found a way to keep the popular Feast in the East event going. Traditionally, this is a networking event in which members sample food from area restaurants while local chefs compete for the Top Chef Trophy.

“This year’s event will be like the show Iron Chef, with three local chefs competing in front of judges,” he explained. Offered as a paid Zoom event, ticket purchasers can watch the competition and receive a ‘takeout’ package of offers from local restaurants. “Through creative thought and hard work, the chamber found another way to still run this popular event.”

 

Here’s the Scoop

One of the real strengths of East Longmeadow, according to Christianson, is the healthy mix of residential and business interests. One intriguing project scheduled to open next year involves the train depot built in 1876 and located in the center of town.

Earlier this year, Graham bought the train depot and the three acres where it sits. He is in the process of converting it into an ice-cream shop called the Depot at Graham Central Station.

“Even though there have been a lot of delays due to COVID, we are finishing up the conversion, and we’re looking forward to opening the depot for the town to enjoy next spring,” he said. Because of its close proximity to the bike path, he hopes to open in the morning and offer light breakfast items, too.

While the anticipation of a new ice-cream shop in town is certainly something to look forward to, Graham said he’s anticipating even bigger news on many fronts.

As a plastics manufacturer, he works with industries as far-ranging as aerospace and automotive to medical devices and retail displays. “We are affected by many of these industries, and when they were down, it had an impact on us,” hs said.

But recent conversations with his customers reveals that many industries are starting to come back, and come back strong. “I have a great deal of optimism for the future.”

Community Spotlight

Community Spotlight

By Mark Morris

John Page and Claudia Pazmany

John Page and Claudia Pazmany say the chamber has stepped up its role this year in many ways to help businesses, including those in Hadley.

Before the pandemic, up to 80,000 cars would travel on Route 9 in Hadley each day, bringing workers, students, and customers to and through the town.

Known for its agriculture, proximity to the Five College community, and a robust retail corridor along Route 9, Hadley has been challenged, like all towns, since the arrival of COVID-19. But efforts by a group of town officials are meeting those challenges to keep Hadley viable today and well into the future.

David Nixon, deputy town administrator, said area colleges play an important role in the local economy. Hadley’s location is central to the Five College community, but Nixon actually sees it as a 30-campus community because that’s how many colleges are within an hour’s drive of Hadley.

While some campuses are open, others have stayed closed, and some are taking a hybrid approach, mixing on-site classes with distance learning.

“This has had an impact on local businesses,” he said, noting that less activity at the colleges, most notably UMass Amherst, which borders Hadley, adds to the struggles many businesses are facing as they try to comply with pandemic restrictions and stay afloat. “Right now, we are doing as much as possible to keep people safe and to support our businesses.”

Hadley officials have reduced licensing fees and expedited the process for businesses that are adapting to state COVID-19 guidelines. For example, when restaurants had to amend their food and liquor license permits to allow outdoor service, Nixon said the town was quick to respond to get the changes made.

“We’ve also expedited the inspections that are necessary when a business changes the footprint of their building,” he added, noting that cooperation among the town’s Planning Board, building inspectors, Fire Department, and Select Board ensured an easier process for the businesses involved.

Hadley is also one of seven communities benefiting from a $900,000 Community Development Block Grant to help microbusinesses stay afloat during the pandemic. Easthampton is the lead community on the grant, which allows businesses with five or fewer employees to apply for up to $10,000 in grant money.

David Nixon

David Nixon

“This project is also an opportunity to replace 100-year old sewer and water pipelines under Route 9. By doing this all at once, it will save taxpayers a lot of money.”

Also pitching in to help businesses is the Amherst Area Chamber of Commerce, which covers Hadley and other surrounding towns. Claudia Pazmany, executive director of the chamber, said the area has been fortunate in that the number of COVID-19 cases is lower than most parts of the state. To keep it that way, the chamber is now providing PPE, as well as printed posters and floor decals, that reinforce messages of social distancing, mask wearing, and hand washing. Available at no charge to chamber members, the signage is just one of the ways to help businesses get back on their feet.

“These are not business-saving techniques by themselves, but we hope to help our members reduce their costs as they open back up under the new guidelines,” she told BusinessWest.

 

Lines of Communication

The chamber has stepped up its role during the pandemic in other ways as well. “Our ability to advocate for and to market our businesses has become even stronger since COVID-19,” Pazmany noted, adding that it’s one of the few “silver linings” of these times.

The town and the chamber have been working together on a series of Zoom meetings with local businesses to hear their concerns and offer whatever help they can, she said. “We’ve been hosting these meetings to keep an open conversation between the town and businesses.”

One of the popular topics in the meetings has been the widening of Route 9, which is expected to start next year. The $26 million project will add travel and turning lanes to the road.

“This project is also an opportunity to replace 100-year old sewer and water pipelines under Route 9,” Nixon said. “By doing this all at once, it will save taxpayers a lot of money.”

Pazmany said the Route 9 widening has been in the planning phase for years, and once complete, the improvements will benefit all who use the roadway.

“Many people use the bus to go to work and school. Among other things, the widening project will provide much safer bus stops and allow buses to get more people moving in an efficient manner.”

The widening project will begin at Town Hall and go east for 2.6 miles to the intersection of Route 9 and Maple Street.

Business owners located along Route 9 have expressed concerns about the loss of business due to COVID-19 being followed up by a loss of business due to road construction. To alleviate that concern, the town has applied for an economic-development grant to market the Route 9 corridor. John Page, the chamber’s marketing and membership manager, said the idea is to position Route 9 as a great place to open a business.

“The grant would be about marketing and planning the future of Route 9 post-COVID,” he explained. “Hopefully, that’s coming sooner rather than later.”

As plans for the future of the town come into focus, Pazmany reminded everyone that Hadley has a great deal to offer right now.

“For those looking for a day trip, this is the time to come and visit,” she said, adding that, with the arrival of autumn, “Hadley will be at its most beautiful and picturesque in the next few weeks.”

She noted that many local restaurants participate in farm-to-table efforts with Hadley farms supplying many of the vegetables.

And, as more people take part in outdoor activities, the Norwottuck Rail Trail bike path has seen more riders than ever before, she said. The path runs completely through Hadley and features scenic views of farms and neighborhoods.

Hadley at a glance

Year Incorporated: 1661
Population: 5,250
Area: 24.6 square miles
County: Hampshire
Residential Tax Rate: $12.78
Commercial Tax Rate: $12.78
Median Household Income: $51,851
Median Family Income: $61,897
Type of Government: Open Town Meeting, Board of Selectmen
Largest Employers: Super Stop & Shop; Evaluation Systems Group Pearson; Elaine Center at Hadley; Home Depot; Lowe’s Home Improvement
* Latest information available

Nixon said the rail trail gives people another perspective on his town. “I often talk about the view of Hadley from Route 9 and the view from the bike path. They look like two completely different communities.”

 

Moving On

Two out of three building projects started last year in Hadley have been completed. The new Senior Center is complete and providing remote programs for residents. The new fire substation is also up and running, and the town library is close to completion.

As those projects conclude, Nixon is planning to wrap up his 15-year career with Hadley and retire on Dec. 31. To transition out of his role as town administrator, he has assumed the title of deputy town administrator while he helps Carolyn Brennan, the recently hired town administrator, transition into the job.

As someone who has been involved in municipal governments for more than 30 years, Brennan’s experience ranges from working with councils on aging in Amherst, Hampden, and East Longmeadow. She remains active as a selectman in Wilbraham, where she lives. Back when Brennan was a student at UMass, she lived in Hadley and worked at the Shady Lawn Rest Home.

Brennan said she’s glad to be back and described Hadley as being in great shape thanks to the town employees and Nixon’s management. “Having worked in other municipalities, I’m impressed with the all of the employees; they are real stakeholders in their community.”

She also appreciates having Nixon work with her while she gets acclimated to the job. “With David staying on until the end of the year, you couldn’t ask for a better transition plan for the town and for me.”

As for Nixon, he reflected on his career with Hadley and spoke of how rewarding it was to serve the town for 15 years.

“I’ll definitely miss the people,” he said. “I’m glad I was part of advancing our community a little further down the road.”

Community Spotlight

Community Spotlight

Jeff Smith

Jeff Smith says getting town business done during COVID-19 has been more challenging than usual, but projects continue to be approved.

Wilbraham is a mostly residential town with two main business districts — the town center, as it’s known, on Main Street, and along a lengthy stretch of Route 20, or Boston Road.

The fact that both have seen development activity during the ongoing pandemic is good news indeed, said Jeffrey Smith, chairman of the Planning Board.

Take, for example, a couple of vacant buildings next to Home Depot that have been vacant for about a decade. They will soon become a 7,000-square-foot O’Reilly’s Auto Parts store and a 2,340-square-foot Valvoline instant oil-change facility.

“It’s great,” Smith said. “Being on the Planning Board and being a resident in town, I hear from people all the time, in casual converations, ‘what’s going on with that place?’ This is one of those vacant and seemingly abandoned properties that is getting a great redo, and I think it’s going to be a welcome addition. The site has been an eyesore for some time.”

Then there’s the former Papa Gino’s restaurant near the Springfield line that’s been vacant several years, but will soon be home to an expansion of Springfield-based Vanguard Dental. Meanwhile, Excel Therapy and Conditioning, a physical-therapy practice that’s expanding to sports rehabilitation and personal training, will set up shop on Boston Road as well.

“We had to work fast to fast-track this during the height of the pandemic, with Town Hall closed,” recalled John Pearsall, director of Planning. “They were in a situation where their lease was running out and they had a chance to purchase this building and move and expand their practice. That’s been a good success story, saving a local business during these difficult times.”

Doing due diligence on development projects hasn’t been easy with offices closed, Smith noted.

“Just like every other town, we’re dealing with COVID, and all Planning and Zoning board meetings have to be done remotely. John and I used to meet quite a bit more in person during the week and outside our regularly scheduled meetings, and we do a little less of that right now. Everything has become more cumbersome, with a lot of extra steps.”

“For a long time, residents in the center of town have complained that it’s a little sleepy, and they want to have more activity there. We’re finally getting some actual development and change. The project will be a real catalyst for the center of town.”

Yet, important work continues, including efforts by the Board of Selectmen, the Board of Health, and licensing authorities to get restaurants reopened in recent months.

“We’re trying to do the best we can to help our businesses stay afloat during these difficult times,” Pearsall said. “And they seem to be very active. I think people are happy to have that option, whether it’s curbside pickup or being able to go out and have a meal outside the home. That’s a big thing for people these days.”

As the town continues to develop a Route 20 renovation plan — including widening driving lanes, adding sidewalks and bike lanes, and more — business continue to see it as an attractive destination, Smith and Pearsall said. That bodes well for 2021, when the process of getting anything permitted in town — and, let’s be honest, life in general — promises to be slightly easier.

Center of Activity

Most schools throughout Western Mass. are currently teaching students remotely. But not Wilbraham & Monson Academy, which launched an ambitious plan earlier this year — including everything from reconfiguring buildings to implementing strict safety guidelines — to bring students back to campus.

“We worked extensively as a town with WMA to reopen and allow students back,” Smith said, recalling Head of School Brian Easler working the Planning Board, Board of Health, and Board of Selectmen to produce a comprehensive plan to get students back safely for in-person learning. “I was surprised at the lengths they went and the protocols they put in place to get reopened.”

The town had a stake in the plan that went beyond what was best for students and their families, Pearsall said. “We were happy to see them open because they provide a real anchor to the town center.”

It’s a center that has long been the subject of speculation. Two years ago, an effort to allow a mixed-use development in the area of Main and Springfield streets failed to garner the necessary two-thirds approval at a town meeting, falling short by about a dozen votes. Since then, town officials have struggled to balance the need to fill vacant buildings with general pushback when it comes to change.

Currently, two vacant buildings at the corner of Main Street and Burt Lane have been slated for demolition and development, Smith said.

“We’ve been working at least the last two years with the owner of the property and getting something viable in place for those buildings,” he told BusinessWest. “If everything goes as planned, that will be a major change in the way the town center looks. The owner of the property has worked extensively with us and other committees and boards in town to come up with a design concept that would fit in with the town center.

“It’s a very sensitive area; it’s looked the way it has for quite some time,” he added. “This is a new use on this spot — mixed-use development, with retail on the ground floor and apartments on the second floor. Actually, it’s bringing in an old use. At one point, a hotel stood on this spot. So we’re bringing residential use back, and resurrecting something that was done years ago.”

Wilbraham at a glance

Year Incorporated: 1763
Population: 14,868
Area: 22.4 square miles
County: Hampden
Residential Tax Rate: $22.38
Commercial Tax Rate: $22.38
Median Household Income: $65,014
Median Family Income: $73,825
Type of government: Board of Selectmen, Open Town Meeting
Largest Employers: Baystate Wing Wilbraham Medical Center; Friendly Ice Cream Corp.; Big Y; Home Depot; Wilbraham & Monson Academy
*Latest information available

Some folks in the neighborhood are open to change, Pearsall said. “For a long time, residents in the center of town have complained that it’s a little sleepy, and they want to have more activity there. We’re finally getting some actual development and change. The project will be a real catalyst for the center of town.”

The former post office on Crane Park Drive recently changed ownership and could be repurposed as commercial office space, he added, while a new cosmetology business, Inner Glow Skin Studio, is moving in. Meanwhile, the old Masonic Hall on Woodland Dell Road was purchased by a local resident who is converting it to office space for his dental-management business.

“We’re taking a property that was tax-exempt and putting it back on the tax rolls,” Smith added.

Also along Main Street, Rice’s Fruit Farm and adjoining Fern Valley Farms have been enjoying a strong year, with pick-your-own-apples business boosted by cooperative weather and families looking for something to do. In fact, Rice’s has been working with town Planning and Zoning officials on parking expansions to accommodate the enterprise’s growth.

“It’s been very successful,” Smith said, adding that a parking crunch is, in one sense, a good problem to have. “They’re kind of taking the next step.”

Developing Stories

Wilbraham also has two solar farms under construction, a 1.4-MW project on Tinkham Road and a 3.4-MW project on Beebe Road; the latter development straddles the Hampden town line, with another 2 MW available for that community.

Another development in the works is part of a ‘community compact’ to identify and explore the potential for expanding municipal fiber along Boston Road to determine how that might impact business opportunities.

“There’s a need for fiber and high-speed internet,” Smith said. “We moved some time ago to be a municipal light plant, which means we can essentially be a supplier of high-speed internet.”

“There’s a broadband committee, being coordinated by our IT director, to move that project forward,” Pearsall added.

Residential growth advances slowly in a small town, but some trends have emerged. Even before COVID-19 struck, Pearsall noted, more people were starting to work from home.

“We’ve seen a lot more interest and activity from people trying to do home-based businesses,” he said. “We’ve also seen a lot of interest in so-called in-law apartments in town, and we have zoning for that, where elderly parents own a home and want their children to live with them, or the children own the home and create an apartment for their parents. That seems very popular right now.”

It’s another way times are changing and town leaders must adapt — in a year when they’ve certainly had plenty of practice.

Joseph Bednar can be reached at [email protected]

Community Spotlight Special Coverage

Punching Back

Peter Picknelly, left, and Andy Yee

Peter Picknelly, left, and Andy Yee are partnering in a restaurant project at the former Court Square Hotel property.

Springfield Mayor Domenic Sarno noted that his city is certainly well-versed in dealing with natural and man-made disasters — everything from the tornado in June 2011 to the natural-gas explosion a year and a half later.

“Battle-tested” was the phrase he used to describe a community that has been though a lot over the past few decades.

But the COVID-19 pandemic … this is a different kind of disaster.

The new façade of the Tower Square Hotel, which expects to be under the Marriott flag next spring.

“It’s like shadow boxing in a lot of ways,” he said, using that phrase to essentially describe a foe that’s hard to hit and an exercise that amounts to punching air. “With those other disasters, I knew what hit us, and I knew how to jab back; with COVID-19, we don’t know when it’s going to go away, and we don’t know what’s going to happen next.”

But the city is certainly punching back against the pandemic, said the mayor and Tim Sheehan, the city’s chief Development officer, noting that it has undertaken initiatives aimed at everything from helping small businesses keep the doors open to assisting residents with paying their mortgage, rent, and utility bills.

And while the pandemic has certainly cost the city some vital momentum, the development community, which usually takes a long view, remains bullish on the city, said Sheehan, noting that there has been strong interest in projects ranging from the former School Department headquarters building on State Street to properties in the so-called ‘blast zone’ (damaged by that aforementioned natural-gas explosion), to buildings in the general vicinity of MGM Springfield in the city’s South End.

“One of more positive things we’re seeing is that development interest in Springfield remains strong,” he told BusinessWest. “And for some larger-scale projects, it’s new interest, from outside the area. And that bodes well for the whole effort that’s been made in terms of the downtown renaissance and the casino development; the development community’s message on Springfield is a good one.”

In the meantime, some projects are already moving forward, most notably the conversion of the long-dormant former Court Square Hotel into apartments and retail space, but also the extensive renovations (although that’s not the word being used) at the Tower Square Hotel in anticipation of regaining the Marriott flag that long flew over the facility, the new Wahlburger’s restaurant going up next to MGM Springfield, the new White Lion Brewery in Tower Square, the conversion of the former Willys-Overland building on Chestnut Street into market-rate housing, movement to reinvent the Eastfield Mall, a plan to redevelop Apremont Triangle, and much more.

But despite these projects, and despite the mayor’s confidence that the city will rebound quickly once the pandemic eases, there are certainly concerns about what toll the pandemic will take on existing businesses, especially those in retail, hospitality, and the commercial real-estate sector — specifically, the office towers downtown.

Mayor Domenic Sarno

Mayor Domenic Sarno says he’s confident that the city can make a strong — and quick — rebound from COVID-19.

There is strong speculation that businesses that now have some or most employees working remotely will continue with these arrangements after the pandemic eases, leaving many likely looking for smaller office footprints. Sheehan noted that such potential downsizing might be offset by businesses needing larger spaces for each employee in a world where social distancing might still be the norm, but there is certainly concern that the office buildings that dominate the downtown landscape will need to find new tenants or new uses for that space.

“There’s some conflicting data out there — the average size of a typical commercial office lease was going down prior to COVID, and a big reason was the rise of the communal working space,” he explained. “Well, now, the communal working space isn’t working so well anymore; there are some impacts that are forcing companies to require more space, not less.

“It’s like shadow boxing in a lot of ways. With those other disasters, I knew what hit us, and I knew how to jab back; with COVID-19, we don’t know when it’s going to go away, and we don’t know what’s going to happen next.”

“Still, before COVID, the vacancy rate for commercial real estate was somewhat high,” he went on. “We collectively need to be working with the building owners and businesses to make sure those numbers don’t exacerbate as we come out of COVID. But, clearly, there is concern about the commercial real-estate market.”

For this, the latest installment in BusinessWest’s Community Spotlight series, the focus turns to the unofficial capital of the region, the current battle against COVID-19 and the many forms it takes, and the outlook for the future, both short- and long-term.

View to the Future

As he walked around the former Court Square Hotel while talking with BusinessWest about his involvement with the project to give the landmark a new life, Peter A. Picknelly pointed to the windows in the northwest corner of the sixth floor, and noted that this was where a City Hall employee had just told him she wanted to live as he and business partner Andy Yee were leaving a meeting with the mayor.

But then he quickly corrected himself.

“No, she was referring to that corner,” he noted, pointing toward the windows on the northeast side, the ones with a better overall view of Court Square and Main Street. “That’s the one she said she wanted.”

Talk about actually living in the still-handsome structure that dominates Court Square is now actually real, whereas for the better part of 30 years it had been nothing but a pipe dream. That’s how long people have been talking about renovating this property, and that’s how challenging this initiative has been.

Indeed, like Union Station, another project that took decades to finally move beyond the talk stage, Court Square’s redevelopment became real because of a public-private partnership with a number of players, ranging from Picknelly’s Opal Development and WinnCompanies to MGM Springfield, to the city, the state, and federal government.

“This project was a bear, and that building was an albatross around the neck of a lot of mayors,” Sarno said. “This was all about persistence and not giving up when it would have been easy to do that.”

As for Picknelly, this is a legacy project of a sort, he said, noting that his father, Peter L. Picknelly, had long talked about creating a boutique hotel at the site — which, after its days as a hotel, was home to a number of law offices because of its proximity to the courthouse — as a way to inject some life into a still-struggling downtown.

Chief Development Officer Tim Sheehan

Chief Development Officer Tim Sheehan says the city’s first priority has been to assist businesses and help ensure they’re still in business when the pandemic eases.

The boutique-hotel concept became less viable as new hotels were built in the city, he went on, but the urgent need to convert the property for a new use — identified as the top priority in the Urban Land Institute study completed more than a decade ago — remained.

“How can Springfield really see its full potential if this building is vacant?” asked Picknelly, who again partnered with Yee — the two have resurrected both the Student Prince and the White Hut — to create a restaurant in the northwest corner of the property (more on that in a bit). “This is going to be the centerpiece of Springfield’s renaissance.”

The Court Square project is just one example of how things are moving forward in the city, even in the midst of the pandemic, said Sheehan, noting that, in the larger scheme of things, Springfield remains an attractive target for the development community — and for the same reasons that existed before the pandemic, namely an abundance of opportunities, growing momentum in the central business district, the casino, Union Station, the burgeoning cannabis industry, and more.

Still, the the pandemic has certainly been a major disruptive force in that it has imperiled small businesses across many sectors, especially hospitality; brought a relative stillness to the downtown area as many employees continue to work at home; closed the casino for nearly four months and forced it to reopen at one-third capacity; cancelled all shows, sports, and other gatherings at the casino, the MassMutual Center, Symphony Hall, and elsewhere; and even forced the Basketball Hall of Fame to reschedule its induction ceremonies (normally held this month) to the spring and move them to Mohegan Sun.

So the first order of business for the city has been to try to control, or limit, the damage, said Sarno and Sheehan, adding that it has been doing this in a number of ways, including its Prime the Pump initiative.

The Court Square project

The Court Square project, roughly 30 years in the making, was made possible by a comprehensive public-private partnership.

The program, using Community Development Block Grant monies, has provided small grants to city businesses in amounts up to $15,000. The awards have come over several rounds, with the first focused on restaurants, perhaps the hardest-hit individual sector, with subsequent rounds having a broader focus that includes more business sectors and nonprofits. Sheehan said businesses receiving grant funds have also represented a diversity of ownership.

“Prime the Pump numbers in terms of minority representation were huge — more than 72% of the awards were to minority-owned, women-owned, or veterans, and all of the nonprofits we supported had 30% or more minority participation on their board of directors,” he explained, adding that these numbers are significant because many minority-owned businesses had difficulty attaining other forms of support, such as Paycheck Protection Program loans.

In addition to helping businesses weather the storm, the city has also provided financial assistance to residents, said the mayor, noting that this aid has gone toward paying mortgages, utility bills, and rent, assistance that also helps the city’s many landlords.

“In this region, I don’t think any community has done more to help their businesses and their residents,” Sarno noted. “We have put out well over $5 million, and perhaps $6 million. We’ve been very proactive, and we’re going to continue working with businesses, such as our restaurants, to help them stay open.”

Such support is critical, said Sheehan, because in order to rebound sufficiently once the pandemic subsides, consumers will need to find outlets for that pent-up demand the mayor mentioned.

“How can Springfield really see its full potential if this building is vacant? This is going to be the centerpiece of Springfield’s renaissance.”

“When there is a vaccine, or when our numbers are so low that people feel safe and feel willing to go back out, the responsiveness will be there,” he noted. “My concern is making sure that the businesses we have are still in business when we get there.”

When We Meet Again

While he talked about COVID-19 using mostly the present tense, Sarno also spent a good deal of time talking about the future.

He said the pandemic will — eventually and somehow — relent. And, as he said earlier, he is confident the city will rebound, and quickly, and perhaps return to where it was before ‘COVID’ became part of the lexicon. For a reference point, he chose Red Sox Winter Weekend in January, an event staged by the team but hosted by MGM Springfield. It brought thousands of people to the city, filling hotels and restaurants and creating traffic jams downtown as motorists tried to maneuver around closed streets and various gatherings.

In many ways, Red Sox Winter Weekend is emblematic of all that’s been lost due to the pandemic. It won’t all come back overnight, Sarno and Sheehan noted, but the vibrancy will return.

“COVID-19 has really knocked us for a bit of a loop,” the mayor said, stating the obvious. “But I think there there’s a lot of pent-up … not only frustration, but desire to get back out there, so when we defeat this, I really think we’re going to rebound very nicely, and even quickly, because we continue to move projects forward and put new projects on the board.”

Tower Square Hotel

These renderings show what the front lobby (above) and ballroom will look like in the Tower Square Hotel that is being ‘reimagined’ and ‘redesigned’ and will soon be flying the Marriott flag.

This optimism extends to MGM, which had been struggling to meet projections (made years ago) for gross gambling revenue before the pandemic, and has, as noted, been operating at one-third capacity since early summer, with the hotel and banquet facilities closed.

“When MGM was hustling and bustling, with shows coming in, downtown was thriving,” Sarno said. “I’m hoping that, as we head into the last quarter and eventually the holiday season, if people can regain their confidence in going out to places like this, we see things pick up.”

And there will be some positive changes to greet visitors as they return, starting with a new Marriott.

Indeed, work continues on a massive project that Peter Marks, general manager of the hotel, insists is not a renovation, because that word doesn’t do justice to the massive overhaul. He instead said the hotel has been “reimagined” and “redesigned.”

Indeed, slated to open — or reopen, as the case may be — next spring or summer, the 266-room facility is getting a new look from top to bottom, inside and out. The most visible sign of the change is a new, more modern façade that greets visitors coming over the Memorial Bridge. But the entire hotel is being made over to new and stringent standards set by Marriott.

“This is not a reflagging; it’s a new build, and that’s why the work is so extensive,” he explained. “Everything that that a guest could see or touch is being replaced. Beyond that, we’ve moved walls, we’ve moved emergency staircases in the building to accomplish higher ceilings … it’s impressive what has been done.”

The timing of the project — during the middle of a pandemic — has been beneficial in one respect: there was minimal displacement of guests due to the ongoing work and, therefore, not a significant loss of overall business. But the pandemic has also been a hindrance because it’s made getting needed construction materials much more difficult, causing delays in the work and uncertainty about when it can all be completed.

“You might get a shower wall in, but not the shower tub,” Marks explained. “And you can’t do the wall without the tub, so you have to wait, and this happens all the time. If everything goes smoothly from here, it might be April when we reopen, or it could also be summer.”

By then, he thinks the world, and downtown Springfield, will look considerably different, and there will be a considerable amount of pent-up demand.

“Especially for the leisure travelers,” he said. “People are really itching to get out; they’re all waiting to go somewhere, and also go to events, weddings, family reunions, and other celebrations. I’m hopeful that we’ll be opening right when the pent-up demand is coming.”

As for the restaurant planned for the Court Square property, Picknelly and Yee project it will be open for business by the fall of 2022, and that, when it does debut, it will be an important addition to a downtown that may look somewhat different, but will likely still be a destination and a place people not only want to visit, but live in.

“Winn has done 100 renovation projects like this around the country,” Picknelly said. “They are 100% convinced that this building will be fully occupied by the time we open — there’s no doubt in their minds, based on the projections. I think that says a lot about people still wanting to live in urban areas, and I think it says a lot about Springfield and what people think of this city.”

Fighting Spirit

Returning to his analogy about shadow boxing, Sarno said COVID-19 has certainly proven to be a difficult sparring partner.

Unlike the tornado, which passed through quickly and left a trail of destruction to be cleaned up, COVID has already lingered far longer than most thought it would, and no one really knows for sure how much longer we’ll be living with it.

Meanwhile, as for the damage it will cause, there is simply no way of knowing that, either, and the toll creeps higher with each passing week.

But, as the mayor noted, the city is already punching back, and it intends to keep on punching with the goal of regaining the momentum it has lost and turning back the clock — even if it’s only six or seven months.

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

Features

Telecommuting Can Be Taxing

By Carolyn Bourgoin and Lisa White

In response to the COVID-19 pandemic and the related public-health concerns, many businesses have implemented work-from-home (WFH) arrangements for their employees. Whether due to government-mandated shutdowns or voluntary efforts of employers to protect workers, there has been a significant rise in telecommuting that continues even as some states begin to relax restrictions.

Carolyn Bourgoin

Carolyn Bourgoin

Lisa White

Lisa White

Businesses with telecommuting workers need to evaluate the potential payroll and business-tax consequences created by those employees working from home in states where the business would not otherwise have a taxable presence.

Though most states have existing guidance addressing telecommuting for both businesses and workers, the unusual circumstances created by the COVID-19 pandemic has necessitated the need for states to revisit these rules. Unfortunately, there is also little uniformity among the states in both the existing guidance and the temporary guidance being issued.

In order to remove some of the uncertainty and to limit the potential adverse state tax consequences of employees working remotely, the Remote and Mobile Worker Relief Act (RMWR) was introduced to the Senate in July as part of the American Workers, Families, and Employers Assistance Act. The RMWR contains special provisions prohibiting a state and its localities from taxing the wages of an employee who is performing services in a state other than their state of residence due to the COVID-19 public-health emergency.

“Businesses with telecommuting workers need to evaluate the potential payroll and business-tax consequences created by those employees working from home in states where the business would not otherwise have a taxable presence.”

For calendar year 2020, this protection is afforded for a period not to exceed 90 days. Businesses would also be provided protections under this tax-relief package concerning their telecommuting employees. Remote workers performing duties in a state or locality where the employer does not otherwise have a presence would not automatically cause the business to be subject to taxation in that state. However, as it is unclear when or if this bill will pass, employers must continue to review the guidance of the respective states and localities where their remote workers are performing services.

Massachusetts Guidance

Massachusetts issued temporary guidance providing tax relief where an employee is working remotely in the state due to the COVID-19 pandemic. A recent technical information release (TIR 20-10) issued by the Department of Revenue provides that the presence of one or more employees working remotely in Massachusetts will not by itself create a withholding responsibility with respect to that employee if the remote work is due to any one of the following:

• A government order issued in response to the COVID-19 pandemic;

• A remote-work policy an employer adopts to comply with federal or state guidance or public-health recommendations relating to COVID-19;

• A worker’s compliance with quarantine requirements due to a COVID-19 diagnosis or suspected diagnosis; or

• A worker’s compliance based on a physician’s advice due to a worker’s COVID-19 exposure.

For businesses, wages paid to a non-resident employee who, prior to the pandemic, was performing services in Massachusetts, but who is now telecommuting, will continue to be treated as Massachusetts source income, subject to income tax and withholding. The information release further provides that, while it is in effect, the presence of one or more remote workers in the state due to the COVID-19 pandemic will not automatically create a Massachusetts sales and use tax-collection responsibility or a corporate excise tax-filing responsibility.

These provisions are effective until the earlier of Dec. 31, 2020 or 90 days after the state of emergency in Massachusetts is lifted. Employers must maintain written records to substantiate the pandemic-related circumstances that caused an employee to fall under the TIR’s provisions.

Massachusetts issued its temporary guidance with the understanding and expectation that other states either have adopted or are adopting similar sourcing rules. However, similar to the relief provided in the Senate bill discussed earlier, it would still be prudent for an employer to still review the guidance of the respective states and localities where their remote workers are performing services.

Guidance from Neighboring States

New York: New York is one of five states that has a ‘convenience of the employer rule,’ treating as New York wages any compensation earned by employees of a New York company while they are working outside the state. Under this rule, the wages of a telecommuter could be sourced to both New York and the telecommuter’s resident state, requiring payroll withholdings for both states.

A bill was introduced in the New York Senate in May that would offer relief to businesses by exempting the non-resident employee wages from New York income tax and withholding requirements for a specified amount of time. However, as of the time of this article, the New York Department of Revenue has remained silent on its position regarding these matters.

Connecticut: Connecticut is another state with a ‘convenience of the employer rule.’ However, the state only applies this rule in determining Connecticut source income of residents of states that also apply the convenience rule. Otherwise, wages are sourced to Connecticut based on the portion of services performed within the state.

The Connecticut Department of Revenue has not issued any form of guidance to date, but did respond to a state survey this past May regarding telecommuting due to the COVID-19 crisis. The agency replied that it was working on guidance that would ensure ‘fair and equitable treatment’ to both its individual residents and Connecticut-based businesses.

Rhode Island: Rhode Island has issued formal guidance similar to that of Massachusetts, providing that the presence of one or more remote workers in the state due to the COVID-19 pandemic will not automatically create an income tax-filing responsibility and sales and use tax-collection responsibility. Wages paid to a non-resident employee who is now telecommuting will continue to be treated as Rhode Island source income subject to income tax and withholding.

Businesses with telecommuting employees in other states must check to see if those states offer tax relief from withholding taxes, income-tax nexus, and sales and use tax-filing obligations created by these remote workers during the COVID-19 health crisis. Unfortunately, there is no set time frame or requirement that states issue such guidance.

Passage of the Remote and Mobile Worker Relief Act would help to remove some of the uncertainty surrounding the tax treatment of these workers. Employers in the meantime are left to monitor potential changes to state tax laws where their remote workers are located during the COVID-19 pandemic to determine whether they have relief from tax filings in the telecommuting state.

Carolyn Bourgoin, CPA is a senior manager, and Lisa White, CPA is a manager for the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.; [email protected]; [email protected]