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Reorganization Plan Creates Springfield Regional Chamber

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Chamber Spfld
Features

Changing the Model

Jeff Ciuffreda

Jeff Ciuffreda says the ‘affiliated’ model for chambers is outdated, and the regional concept being proposed is more efficient.

The Affiliated Chambers of Commerce of Greater Springfield and the Springfield Chamber of Commerce will soon merge into an entity to be known as the Springfield Regional Chamber. The reorganization plan is to designed to reduce confusion and bureaucracy, and chamber administrators believe it will ultimately create a more efficient, and more powerful, regional entity.

As he talked about what amounts to a long-discussed — and in many ways long-overdue — reorganization plan and renaming of the Affiliated Chambers of Commerce of Greater Springfield (ACCGS), Jeff Ciuffreda, president of that organization, used several methods to explain why this move was deemed necessary.

Easily the most effective came as he recounted a meeting of the Springfield Chamber of Commerce’s board of directors last year, and, more specifically, a discussion of that entity’s finances.

“Four or five board members said, ‘wait, I thought I was a member of the Springfield Chamber,’” he recalled. “When I said ‘you are,’ they said, ‘well, how come my money goes to the ACCGS?’ After 20 minutes of discussion, I said to myself, ‘if the board doesn’t understand this structure, then how is the member on the street going to understand it?’”

To bring an end to this confusion and put in place what Ciuffreda believes is a more efficient and sustainable model of chamber organization and management, the ACCGS and the Springfield Chamber will be effectively merged into something called the Springfield Regional Chamber of Commerce.

A formal vote on the proposal involving members of those chambers has been slated for Aug. 24, and Ciuffreda is confident of passage for several reasons, but especially his belief that the merger makes sense — on several levels. Overall, it will eliminate unneeded layers of bureaucracy and create a more efficient chamber, with more resources flowing directly to member services, all while maintaining and also enhancing a regional emphasis, while maintaining a focus on the region’s business, civic, and cultural hub.

“In the old, affiliated model, you had separate boards with separate bylaws, with all the powers, if you will, that they had to set rates and act on their own,” Ciuffreda explained. “Now, you’ll have one board that’s centered on Springfield but focused on the entire region; there will be one board, one set of bylaws.

The reorganization amounts to an acknowledgement that the ‘affiliate’ model of chamber organization, popular decades ago, and in place in Greater Springfield since the mid-’90s, has essentially run its course, said Ciuffreda.

Within that model, he noted, the umbrella organization acts unofficially, and even officially, as a management company, taking a large percentage of dues paid by the members of affiliates in exchange for providing a variety of services.

In this different, regional format, dues — the entire amount — are paid directly to the chamber in question, said Ciuffreda, adding that this puts more money to work for members.

Meanwhile, the two words in the new name are both important.

Indeed, Springfield, the area’s largest city and business hub, will be a focal point of its events and involvement with business-related issues (as it is now with the ACCGS), but there will be regional emphasis as well. And that term works better, he believes, than ‘Greater,’ which has ben attached to most area cities’ chambers, and even Franklin County’s.

“Members may not necessarily see that it’s a better-operating entity,” Ciuffreda noted, “but they will see more clarity, and if I’m a member from Agawam, I’d feel a little better that I’m part of the Springfield Regional Chamber, rather than the Springfield Chamber.”

He added that members of the renamed organization should feel more empowered by that word ‘regional.’

“I think this [name] gives members not from Springfield a clearer voice in the region,” he said. “They joined that chamber because they obviously felt they needed to be connected to Springfield. But now, when they join, I think they’ll be a little more active in our programming because this will be known as the Springfield Regional Chamber; I think this will give them more of an ownership stake.”

Ellen Freyman

Ellen Freyman says the reorganization plan will reduce confusion — and several unneeded layers of bureaucracy.

The board of the other ACCGS affiliate, the East of the River Five Town Chamber of Commerce (ERC5), composed of businesses primarily in East Longmeadow, Longmeadow, Hampden, Wilbraham, and Ludlow, has voted not to merge into this new regional chamber, said Ciuffreda, adding that it will become a separate entity, and members will no longer have access to the full benefits and services offered through the new Springfield Regional Chamber. However, under an existing service agreement, ERC5 members in good standing can continue to receive services, but only through their current membership term.

For this issue, BusinessWest looks at the chamber’s reorganization plan and what it means for the region and its business community.

Getting Down to Business

Ciuffreda told BusinessWest that discussions concerning a reorganization have been ongoing for several years now.

They picked up in intensity in the spring of 2013 as part of an elaborate strategic planning process — undertaken with the assistance of a facilitator — that was designed to create a blueprint for the next several years.

That planning process examined the current state of organization and prospects for the future, while also researching and benchmarking other models, said Ellen Freyman, chairman of the ACCGS board of directors since last year.

Freyman would eventually appoint a committee to more closely examine the structure of the ACCGS, explore options, and ultimately make a recommendation for the best course moving forward.

“We looked at best practices, talked to the leaders of several chambers, and came up with a regional chamber concept that would essentially have one chamber serving many communities,” said Ciuffreda, adding that the committee completed its work and submitted its recommendation roughly four months ago, based on a model adopted by the chamber in Jacksonville, Fla., among others.

“This structure,” he added, “would result in a clearer and strengthened vision, provide for stronger collaborations, better reflect the regional thinking of the membership, and enable the chamber to grow so that its members could as well.

“The affiliation model was put in place here several years ago, and many chambers looked at that model,” he went on. “But it never really caught on, and, quite frankly, for us, I think the board thought it had outlived its usefulness.”

The vote to reorganize continues a pattern of evolution concerning the chamber of commerce landscape over the past few decades, said Ciuffreda, adding that, only a few years ago, most area communities had their own chambers, which provided both a source of pride and identity.

Only a decade ago, Agawam had its own chamber, he explained, as did West Springfield and Ludlow. Hampden and Wilbraham shared a chamber, as did Longmeadow and East Longmeadow. Each of these entities existed as an affiliate of the ACCGS, while chambers in other communities, such as Chicopee and Holyoke, considered becoming affiliates but ultimately chose not to. Westfield became an affiliate for several years, but eventually went back to being a separate entity and remains one today.

A number of factors, from operating costs to declining membership in chambers nationally, resulted in consolidation and formation of the West of the River (Agawam and West Springfield) and East of the River Chambers, Ciuffreda went on, noting that the former severed its ties with the ACCGS in 2011 and became a separate entity.

Giving Voice

Many of those same factors — especially cost and bureaucracy — played roles in the planned reorganization to the Springfield Regional Chamber, he said, adding, again, that the new structure should enable more resources (in the form of membership fees) to be channeled directly into member services.

He used the example of a company paying fees to the current Springfield Chamber of Commerce as an example.

“The ACCGS is really the management corporation; all the services are provided for by the ACCGS, and it had all the expenses,” he explained. “But some of your dues would always go back to the Springfield chamber.

“So if you paid $360 as a member, the Springfield chamber would keep $60, and $300 would go to the ACCGS,” he went, using a hypothetical situation to keep things simple. “Now, all of the funds will be kept by the Springfield Regional Chamber, so we think we’ll be able to provide more services; before, the Springfield chamber could keep part of that money, but they had no expenses to cover.”

Beyond the financial shortcomings of the affiliated structure, there was also considerable confusion — as evidenced by that Springfield Chamber board meeting referenced above — concerning the various entities, their roles, their finances, and more, said Freyman.

“Who can tell you what the Springfield Chamber or the ACCGS is and how the structure works?” she asked. “With this new model, there is much more clarity concerning mission.”

While some things will change with the reorganization, said Ciuffreda, most things won’t.

For starters, membership in the new regional chamber will approximate the size of the current Springfield Chamber, which has roughly 525 members, he said, adding quickly that he anticipates this number will grow. And it will mirror the current demographic breakdown of that organization, he went on, adding that eight to 10 zip codes are currently represented by the membership.

Most importantly, though, the chamber will still be a regional entity, he said, adding that it works with elected officials in communities that have their own chambers, and takes a regional approach to matters ranging from the I-91 reconstruction project to casinos to advocacy on behalf of military bases such as Westover Air Reserve Base and the Air National Guard Base at Barnes Municipal Airport.

But it will have more power to operate effectively on a regional basis because the new structure provides it with that authority, Cuiffreda noted, adding that, in the current structure, more power lies with the affiliate members.

The Springfield Regional Chamber will also continue to collaborate with other area chambers on a host of initiatives, including efforts to promote and inform area businesses, he said, adding that the new model will also make it easier to partner with other business-related groups, such as Northampton Area Young Professionals, because of its more regional focus and reach.

The Bottom Line

Ciuffreda told BusinessWest that, while the single-chamber theory of the universe, or at least Greater Springfield, has long made a good deal of sense, efforts to make such a change have been challenged by fears that those in some communities would feel left out or overlooked if they were in a chamber with the name ‘Springfield’ in front of it.

Thus, the affiliated structure lived on, despite its shortcomings and layers of bureaucracy. But he believes the times, and the conditions, are right for a much-needed change.

“As our economy changed, as our region changed, the mayors of other cities like Agawam and West Springfield would say, ‘as Springfield goes, so goes the Valley, so goes the region,’” he explained. “So it was time to finally say, ‘we need to make the chamber reflective of how we’re operating, which is regionally.’”

Time will obviously tell if this was the right move, but Ciuffreda is confident that the new organizational structure will be a win-win for all those involved.

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

Wilbraham Balances Development, Open Space

By
Community Spotlight Features

Community Spotlight: Westfield, Mass.

Bob Russell and Jeffrey Smith

Bob Russell and Jeffrey Smith say new zoning was created so Rice Fruit Farm could reopen after sitting vacant for four years, one of many positive developments in the community.

Bob Russell grew up in Wilbraham and has spent most of his life in the town. The selectman is proud of his community and cites work by officials that encourages business growth while keeping a close eye on retaining and expanding the vast amounts of open space and recreational opportunities that can be found on walking and hiking trails crisscrossing the community’s 22 square miles.

He told BusinessWest a 50-year-old time capsule was recently unearthed that contained a statement by town officials who predicted the population would rise to 40,000 residents. “It is significantly less, which speaks to responsible planning and management,” Russell said. “We are not completely built out like some other towns.”

Jeffrey Smith concurred. “We allow for responsible growth and development, particularly in our business districts, which include the town center and Boston Road,” said the chair of the Planning Board. “There are opportunities to construct new homes on single lots and in new subdivisions as well as condominiums. But we put a high value on open space and recreation.”

This value statement was reiterated by Selectman Susan Bunnell.

“We’re in the early stages of another wave of economic development, and informal discussions are taking place between the Select Board and business leaders about how to proceed,” she noted, adding that the state brought fiber-optic cable into the town via the Mass Broadband Initiative activated in the spring, and a committee is exploring whether to expand it because it is currently limited to town buildings and schools.

“We have a municipal light plant that was created last year and are positioned to move to the next level, but we have to determine how to move forward; fiber-optic cable is something businesses have a need for, but any expansion would be done in a measured manner,” she told BusinessWest, adding that she recently attended a statewide seminar on the topic.

But officials also tout the large amount of available space for new businesses and cite potential for success, because much of it is concentrated on the busy stretch of Boston Road that runs through town.

“We have good access to state highways and the Mass Turnpike and good utilities; high-quality water from the Quabbin and adequate sewer capacity,” said Planning Director John Pearsall.

Smith added that Dunkin Donuts just completed a major renovation and expanded its parking lot. “They worked with the Planning Board to come up with a good design,” he recalled, adding that Lumber Liquidators next door has done well, as has the new, $5 million Balise Ford dealership built two years ago.

“There is also a textile mill on Cottage Street off Boston Road under new ownership, and we are in discussion about potential new uses for it,” Smith said, noting that the 200,000-square-foot building sits on 10 acres.

For this issue, BusinessWest continues its Community Spotlight series with an in-depth look at Wilbraham and its ongoing balancing act.

Prioritized Goals

Wilbraham officials say the town welcomes new business, and zone changes are made on a regular basis to accommodate growth.

“Changes were recently passed at the annual town meeting to allow for more retail business in two zones in the center,” said Russell. “They were combined, which will allow properties to be used for retail sales and food-based operations where they could not be established before.”

Pearsall added that the town has a long history of changing its zoning to allow for development, and pointed to the engineering firm FloDesign as an example.

“It was built on abandoned property that was zoned residential; we developed new zoning to allow it to be reused for a business, but were sensitive to the fact that it is surrounded by a residential area,” he told BusinessWest. “It’s the norm in Wilbraham to make adjustments and tweak things to adjust to the changing business climate.”

New zoning has also been put in place for two solar farms. One is permitted at the former landfill, while the second is under review and would be built on private land. “Plus, we constantly approve requests for new residential solar systems,” Smith said.

The iconic Rice Fruit Farm reopened in April, thanks to specific zoning changes created to allow for an adaptive reuse of the property, which includes a farm stand, a food-service operation, and some retail.

“The 100-year-old farm is a landmark in Wilbraham and had been vacant for four years. But the Maloni family came to us with a vision to renovate the existing buildings and create a viable business that would become part of the community, and the town worked with them to make it happen,” Smith explained.

Russell said the opening was well-attended, and residents are glad to see the property brought back to life. “We created a heritage-farmland bylaw to make it happen, and an antique store opened on the property about a year ago.”

The town also allocated $100,000 last year for improvements to sidewalks on Main Street, and hope to expand the project. “The new sidewalks run right past Rice Fruit Farm, and the changes are consistent with items outlined by the Vision Task Force,” Russell said, referring to a 2013 document titled “Wilbraham Looks Forward,” which took residents’ opinions into careful consideration.

Russell says the open space in Wilbraham is one of its main attributes and must be preserved.

“In 2008, Money magazine listed us as one of the best towns to live in, and one of the main factors was our access to open space; there are contiguous hiking trails from one end of town to the other, and we are constantly working to improve them,” he explained. “The town has continued to purchase land when it becomes available, despite the fact that the state cut back on reimbursements.”

To that end, Wilbraham recently approved the new position of land-management coordinator, an official who will inventory all vacant land and work to improve access and recreational opportunities throughout the community.

“Some of the land is under forest management, and we have received money from the sale of timber, which is used to make improvements,” Smith noted.

Officials said the tornado, microburst, and October snowstorm in 2011 pointed out the need for preventive maintenance, and Wilbraham is hosting an annual conference next month for municipal officials, foresters, land trusts, and other groups, which will offer local, state, and regional perspectives on town forests and take participants on a field tour of the community’s forestland to highlight methods and results of sustainable management.

Officials also noted there has been a decided uptick in residential building in the past year.

“The Planning Board recently approved a zoning change for 11 single-family homes in a development that will be called Falcon Meadows,” said Smith. “The land was home to the former Bennett’s Turkey Farm and has sat empty for more than a decade.”

Another subdivision, called Westminster Court, is in the preliminary planning stages and will have seven to 10 lots. Meanwhile, a subdivision known as Carla Lane, which was approved three years ago, is entering Phase III of development. In addition, four lots are still available in the Washington Heights subdivision.

“Building has increased in the past several years, and a number of new townhouses are being built at the Gardens, an over-55 community,” said Building Inspector Lance Trevallion. “Fourteen new single-family building permits have already been issued this year, and I can foresee 15 more by the end of the year.”

He added that the town has a very active and vibrant community garden on a 300-acre parcel of land that is under forest management, and a new greenhouse was just built with Community Preservation Act funding.

In addition, ground has been broken for a new, $8.2 million police station on property adjacent to the fire station, which will be paid for entirely by the town.

“The residents voted for a $4.2 million debt exclusion,” Russell said. “The rest of the cost will be paid out of available funds and bonding capability within the Proposition 2½ levy limit. The cost for the average home will be $78 on the tax bill the first year, which will decline to $49 in year 15 of the bond.”

The Vision Task Force deemed maintaining the beauty and vibrancy of the town important to residents, and although it’s too early to tell how the MGM Springfield casino will affect Wilbraham, officials signed an agreement that provides the town with $100,000 per year for 15 years to mitigate any impact. In addition, Wilbraham will receive a $100,000 consultant fee in the casino’s first and fifth operating years to examine whether the financial repercussions total more than $100,000.

“It is foolish to try to predict the future. But town officials and department heads have created a baseline on our traffic, water, and sewer use,” said Russell. “We will re-measure these things in the future; it’s important because part of the town uses the same sewer line as Springfield, and we get a good portion of our water from Springfield and the Quabbin Reservoir.”

Moving Forward

Russell likes everything about his hometown.

“It is only getting better, and college graduates who grew up here tell us they hope they can afford to raise their children in Wilbraham. We used Community Preservation Act money to revamp the Children’s Museum this year, and Sevey Park is being completely re-landscaped. Our teacher-student ratio is very low, and we have a new, $63 million regional high school,” he told BusinessWest, listing attributes that appeal to families.

“In the last two years, we have not fully exercised the tax-levy limit under Proposition 2½, despite the fact that we have increased our savings and funding for other post-employment benefits for former town employees,” he added. “We have a lot to be proud of, but it’s all about balance — and our citizens consistently vote to develop and grow in a very responsible manner.”

Wilbraham at a glance

Year Incorporated: 1763
Population: 14,868 (2010)
Area: 22.4 square miles
County: Hampden
Residential Tax Rate: $20.88
Commercial Tax Rate: $20.88
Median Household Income: $65,014
Type of government: Open Town Meeting; Board of Selectmen
Largest employers: Friendly Ice Cream Corp.; Town of Wilbraham; Wilbraham and Monson Academy; Life Care Center of Wilbraham

* Latest information available

Fifth Edition of the Western Mass. Business Expo Set for Nov. 4

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Features

Save the Date

WMBExpo 2015 LOGO

The Western Mass. Expo, set for Nov. 4 at the MassMutual Center, will be the fifth produced by BusinessWest.

The first four have constituted what Kate Campiti, the magazine’s associate publisher, described as both an effective way for BusinessWest to expand its mission, and an intriguing learning experience on a number of levels.

Regarding the former, she said the show has become another way in which the magazine has moved beyond the printed word to serve the region’s evolving business community. As for the latter, she said that phrase ‘learning experience’ applies not only to the art and science of event planning and execution, but also, quite literally, to understanding more about the players and issues shaping the scene locally.

“Over the first four years, we’ve learned not only what area business owners and managers want and expect from the year’s biggest business-to-business event,” she noted, “but also about how quickly and profoundly the world of business — and this region — are changing, and how people have to be diligent to avoid being left behind.”

Lessons from those first four years will be applied to the fifth show, she went on, adding that organizers are still putting together pieces to the show, and those basic goals of informing attendees and helping participating businesses become better able to compete will shape the day’s schedule of events and programs.

Several components of the roster of offerings are known — from the return of the Pitch Contest staged by Valley Venture Mentors to demonstrations featuring participants in a robotics program at Pathfinder Regional High School, to seminars on a wide range of topical issues — and others will come together over the next few weeks, said Campiti, adding that details and updates can be found at wmbexpo.com.

Fast Facts

What: The Western Mass. Business Expo
When: Nov. 4
Where: The MassMutual Center, Springfield
Events and Activities: Breakfast hosted by the ACCGS; lunch hosted by the Professional Women’s Chamber; Show Floor Theater presentations; informational seminars; Pitch Contest; matchmaking opportunities; and more.
Exhibitor Information: Booth sizes and rates are: 20×20 showcase unfurnished: $2,250; 20×20 showcase furnished: $2,400; 10×20 double unfurnished: $1,250; 10×20 double furnished: $1,350; 10×10 corner unfurnished: $850; 10×10 corner furnished: $925; 10×10 standard unfurnished: $750; 10×10 standard furnished: $825.
For More Information: Call (413) 781-8600, or visit www.wmbexpo.com


The expo will again be presented by Comcast Business, which has been the show’s lead sponsor since BusinessWest began producing it in 2011. Director-level sponsors are Health New England, Johnson & Hill Staffing Services, MGM Springfield, and Wild Apple Design. The Isenberg School of Management at UMass Amherst is the education sponsor, 94.7 WMAS is the media sponsor, and Elms College is the information-center sponsor.

The day-long Expo will kick off with a breakfast hosted by the Affiliated Chambers of Commerce of Greater Springfield (featuring keynote speaker Dan Kenary, CEO of Harpoon Brewery) and conclude with the Expo Social, one of the year’s most popular networking events. In between will be a lunch hosted by the Professional Women’s Chamber, more than 150 exhibitors, opportunities for ‘matchmaking,’ and myriad chances to network, learn and gain exposure.

The learning component has been an important part of the Expo since the beginning, she went on, adding that this year’s edition will no exception. The seminar’s tracks — sales & marketing, workforce development, and ‘hottest trends’ — speak to what’s happening in business today and also to a desire by Expo organizers to provide attendees and exhibitors with insight they can take back to their offices and plants the next day.

“Today, the biggest issue facing business owners and managers is their workforce,” said Campiti. “People want to know how to put a great team together, how to keep together, how to identify talent, and how to cultivate talent, and we’ll be putting together a track of seminars that will help them do all that and more.

“Meanwhile, two of the biggest challenges remain marketing your business and selling your products and services,” she went on. “And in many respects, the landscape is changing in both realms.”

Sponsorship opportunities are still available, said Campiti, with many forms of exposure provided for those who attach their names to the show. Those interested in exhibiting should call (413) 781-8600 or visit www.wmbexpo.com.

Valley Fest Organizers Raise a Toast to Springfield and the Region

By
Valley Fest
Features

Valley Fest Springfield MassSince launching White Lion Brewing Co. in Springfield last fall, Ray Berry had a feeling that organizing a beer festival would be a good way to showcase his brand, and craft brewing in general. But what has become abundantly clear, with the help of a diverse group of local partners, is that Valley Fest, slated for Aug. 29, is also a celebration of what they consider a city and region on the rise.

When Ray Berry launched White Lion Brewing Co. in Springfield last October, he planned from the start to create a regional beer festival within the first two years. As it turns out, he didn’t want to wait that long.

“I didn’t know whether it would be year one or year two, but with the momentum of the company and awareness of our brand, we felt comfortable enough to bring the fest in year one,” he said.

Specifically, White Lion will present Valley Fest on Aug. 29 in Court Square in downtown Springfield, expecting to draw some 2,000 beer enthusiasts to sample more than 100 different offerings of beer and hard cider made by more than 50 craft brewing companies from throughout the region — and well beyond.

Ray Berry calls Valley Fest a way to “bring together a cohesive conversation”

Ray Berry calls Valley Fest a way to “bring together a cohesive conversation” about what’s happening in the region — with craft brewing and in other ways.

“This is about the city of Springfield, about the region, but it also revolves around craft beer,” Berry told BusinessWest. “Western Massachusetts is starting to see a tremendous amount of momentum around craft beer — new brewhouses, new enterprises, new products on the market.”

White Lion is actually the first one of those brewers based in the City of Homes, and Berry hopes the festival — which will also feature culinary fare from local restaurants, live music, and a home-brewing contest — will create a buzz, so to speak, that raises the profile of the city and region.

“Springfield was a little late to have its own product — White Lion being that — and we thought it was important to showcase White Lion, but also to bring together a cohesive conversation regionally,” he went on. “We didn’t know at the onset that this would be bigger than Western Mass., but we’re covering the spectrum with local, regional, and national brands participating, which is exciting.”

But this isn’t just the story of craft beer, or a day-long, late-summer party. It’s about a number of individuals and businesses coming together to showcase what they call a city on the rise.

The first of those was MGM Springfield, which got on board as the event’s presenting sponsor.

“From the company’s standpoint, showcasing Springfield was obviously important,” said Seth Stratton, MGM Springfield’s vice president and general counsel, noting that the company presented last year’s Downtown Dinner Table event to bring some energy to the casino’s future neighborhood.

“We were all surprised how amazingly successful that event was, and it hammered home to MGM how important it is to bring people downtown,” he added. “If people not used to coming to the city are coming for an event like that, that is a perfect event. We want people to be accustomed to being out in this vibrant city, and making it a destination by showcasing its food and beverage assets, which are a huge part of our business. There’s a synergy between events like this and what our goals are with our project.”

Nadim Kashouh

As a downtown restaurant owner, Nadim Kashouh wants to be part of efforts that make Springfield more of a destination, and considers Valley Fest to be just that.

Like Stratton, Nadim Kashouh — owner of Nadim’s Mediterranean Restaurant and Grill downtown — is invested in developments that make Springfield a destination. He’s one of several area restaurateurs to sign on for the event, citing the event’s potential to showcase Springfield and, by extension, its culinary offerings.

“Ray and I have become good friends, and we were interested in being there at this event,” he said. “Springfield is flourishing right now, and we want to be a part of anything that shows that.”

Worthy Addition

Still, before soliciting sponsors and partners for what would become Valley Fest, Berry first approached Jeff Goulet, who has organized the Worthy Brew Fest in downtown Springfield each spring since 2011.

“We didn’t want our fest to conflict with the other fest, but, rather, to bring a positive impact and awareness of craft beer to Springfield,” Berry said.

Goulet, however, is fully on board — as Valley Fest’s brewery coordinator.

“June was our most successful year by far. It came close to a sellout,” Goulet said. “Our focus has been to have a boutique beer fest, limit it to 1,000 people, with very specialty beers, one-off beers.”

So, when Berry told him about the more wide-open concept of Valley Fest, he felt it was a strong complement to what Worthy Fest has been bringing to the table. He also noted that many of the participating breweries have their own local fan bases, who will then travel to Springfield to take in the festival.

Even after winning Goulet’s support, Berry said a successful event wouldn’t have been possible if not for the support of MGM Springfield. “When they locked in up front as the primary sponsor, that was the key that started the ball rolling.”

Other partners soon followed, all of whom see events like this, as well as Worthy Brew Fest and the second annual Jazz and Roots Festival that landed in Court Square last weekend, as ways to continue the city’s momentum generated by not only MGM Springfield, but a host of new development and business activity downtown.

“Ray came to us and shared his vision for the Valley Fest and asked us to work with him to create the brand narrative,” said Deb Walsh, creative director at TSM Design, which had previously designed the White Lion brand logo, and signed on to create visual and narrative elements to promote the event.

“TSM is very committed to Springfield — and beer,” she said with a laugh. “So we happily joined in and created a look that celebrates the craft, celebrates the location and the history, and emphasizes fun, too, making it an event that people will want to attend.”

Meanwhile, Creative Strategy Agency is developing digital communications and marketing to promote Valley Fest, said President Alfonso Santaniello. Among those efforts is a video introducing the sponsors and vendors and trying to get them to engage with each other well before the event — as well as during it, with the use of the #valleybrewfest hashtag. “This has been a team effort, not just the Valley Fest, but the social site.”

Jill Monson-Bishop, president of Inspired Marketing and Valley Fest’s event planner, said she and other business owners are excited about momentum in the downtown district, whether it’s a company moving into one of the office towers or an event with the promise of becoming an annual attraction.

Jill Monson-Bishop

Jill Monson-Bishop says she and other downtown business owners are looking for “sparks of revitalization.”

“As a downtown business owner, I can say these are the sparks of revitalization we’ve all been waiting for. It’s kind of a renaissance,” she said, adding that she was involved with MGM in the Downtown Dinner Table last year. “That reminded me of back in the days of Taste of Springfield, which brought thousands of people to our downtown without blinking or whining.”

She said it was important to make the event about more than beer, however. That’s why Nadim’s will be joining Plan B Burger Bar, Palazzo Café, the Student Prince, and Sheraton Springfield to deliver an array of food, while live music, including dance-party band Orange Crush and rock act Maxxtone, will spice up the Fest, which Monson-Bishop positioned as an age-21+ event that’s friendly and relaxed.

In addition, Mark Stroobandt of Belgium, an internationally acclaimed beer sommelier, will be on hand for a cooking demonstration. Meanwhile, the second of the event’s two sessions will include pourings from 10 home brewers competing for the title of Valley Fest’s Best Home Brewer, a custom tap handle from East Coast Taps, and, of course, bragging rights.

As a way to give back to the community, Berry said a portion of the event’s proceeds will be donated to the American Cancer Society and Dakin Humane Society, two prominent nonprofits.

Susan Alston, director of development and marketing at Dakin, noted that Berry participated in the PAWSCARS in February, Dakin’s largest annual fund-raiser, and they formed a bond over their concern for animals.

“Every year, more than 6,000 of them need medical attention or new parents,” she said. “Our Dakin facility moved downtown in 2009, and we serve thousands of people who adopt our animals every year within a 50-mile radius. We were lucky to be invited to share the proceeds of this event.”

Coming Together at Valley Fest

The partners promoting Valley Fest stressed that many other entities will support the event in different ways, from Ace Taxi providing free service to those who need it to Sheraton Springfield offering reduced room rates for anyone who wants to turn a day of beer sampling into a safe weekend stay downtown.

“This is a community event,” Santaniello said. “We’re all from various backgrounds and specialties, putting on an event with our community. It’s an opportunity to let people see what can be done when we come together for one great event. People need to realize, it doesn’t have to be one person doing things — people and businesses are here to help, and these events just have to find the right people.”

Berry agreed. “The response from the community — and surrounding communities — has been overwhelming,” he said, noting that those sponsors number around 25, including primetime sponsor MassMutual Financial Group and partnering sponsors the Dennis Group and Williams Distributing. “A number of sponsors stepped up early, believing not only in the festival, but in Springfield in general.”

Berry emphasized that Valley Fest is an important showcase not only for White Lion — which has released three beer selections since last fall and has promoted its efforts in venues all over Massachusetts and other New England states — but for a region ready for a stream of good economic news. “People who are complaining are only reading the headlines. They need to dig deeper.”

Kashouh said MGM and other developments downtown have started to create that buzz, which promises to bring new life to the city.

“I know I find myself investing in renovating, putting more money into the restaurant, waiting for the day when MGM opens up. It’s three years out, but I want to be ready. The beer festival, the jazz festival, these things bring people downtown. People are trickling back. It won’t happen overnight; it’s one store at a time, one restaurant at a time. But we believe in Springfield.”

Stratton stressed that the casino project is not the end-all, be-all, but that each new event or company relocation downtown serves as a catalyst for others.

“I think this is a good example,” he went on. “If you look at the sponsor list, it’s a who’s-who of businesses in Springfield. We’re naturally aligned and interested in having people come down and drink beer and have fun; there’s a natural synergy to what we do. For other businesses, it may not be as immediately apparent. But as people see new, exciting things in Springfield, it’ll eventually be a catalyst for the entire business community, not only those who have a natural interest in this event, like we do.”

That’s a refreshing thought indeed. So cheers, Springfield.

Joseph Bednar can be reached at [email protected]

Southwick Lays Groundwork to Spur Development

By
Community Spotlight Features

Community Spotlight: Southwick, Mass.

From left, Todd Phillips, Stephen Phillips, and Doug Moglin

From left, Todd Phillips, Stephen Phillips, and Doug Moglin say Nitor Corp. in the Southwick Industrial Park plans to double its size.

After 12 years in business, Stephen and Todd Phillips decided it was time to own their own building.

They spent two years looking at sites in Springfield, Agawam, West Springfield, and Windsor, Conn. before they found the perfect location: Southwick Industrial Park.

“We were able to buy 3.1 acres on an industrial building lot for $30,000 per acre, which gave us plenty of room to expand; you can’t touch that price anywhere, and the double whammy was the town’s uniform tax rate. It was a huge incentive to come here,” Stephen said, adding that, prior to building a permanent home for laser-equipment supplier Nitor Corp. four years ago, they had leased space in Westfield and then Agawam Industrial Park.

Today, the brothers are planning to double the size of their footprint, and Stephen calls Southwick’s Industrial Park a hidden gem. “It’s close to Route 57, Interstate 91, 291, and the Mass Pike, and the town’s Planning Board is made up of working-class people who are very receptive and understand business,” he told BusinessWest.

The uniform tax rate, $16.94 per thousand for 2015, and amount of affordable property available for development are among attributes Southwick officials are banking on to spur economic development. There are 50 acres in the industrial park primed and ready for development, another 150 acres that will be available in the future, and about 200 acres of former farmland on Route 57, bordered by Routes 10 and 202, that would be an ideal location for retail establishments, especially since there are new sewers in areas proximate to it.

Other factors officials are relying on include infrastructure improvements; a wide range of recreational opportunities; new residential building; closer ties with the Greater Westfield Chamber of Commerce, led by Kate Phelon, who has held nine ribbon cuttings for them since last year with plans to stage more; and other measures that have evolved as they work to remove impediments to growth.

“All roads are open, and we are working hard to get everything in place for the future. All of the ingredients are here; we have done our part, and our eyes are wide open. We want to help and have things in place so people know exactly what they need to do to open a business,” said Joseph Deedy, chairman of the Board of Selectmen, who has owned MooLicious Farm and Ice Cream for eight years, was on the Planning Board before being elected to his current position, and has owned several other businesses in different states, which helps him understand difficulties new companies deal with.

“We’re looking for mom-and-pop operations as well as light-industrial companies that will bring more to the town than just workers. They will be stakeholders in the community,” he explained.

Doug Moglin agrees. “There is so much opportunity here, and our population is growing,” said the selectman, who is OEM director at Whalley Computer Associates Inc., based in town.

Chief Administrative Officer Karl Stinehart says it’s much easier to do business in Southwick than it was 10 years ago.

The town has worked hard to identify areas that need sewers, and completed phase I of its installation plan, which includes downtown as well as part of the area around Congamond Lakes. In addition, the water quality was improved, which has helped to retain businesses along the corridor as well as allowing them to position themselves for growth.

“The interceptor pipe to Westfield’s treatment plant has been finished, which lays the groundwork for us to move forward,” Steinhart said.

In fact, town officials have been working hard for several years to leverage as much federal assistance as they can before their population hits 10,000, when they will no longer qualify for funding aimed at towns below that number. “We want to make sure we don’t miss out on any opportunities,” he added.

New Growth

The multi-faceted efforts of Southwick officials are already bearing fruit.

A new, $2.2 million Rite Aid is under construction on College Highway and is expected to open by Thanksgiving. “They’ve been renting space in a smaller building and are expanding to a free-standing building with a drive-thru,” Deedy explained.

From left, Karl Stinehart, Jesse Saltmarsh, Joseph Deedy

From left, Karl Stinehart, Jesse Saltmarsh, Joseph Deedy, and Gordon Webster at the site of the new, $2.2 million Rite Aid set to open in November.

Site developer Jesse Saltmarsh of Saltmarsh Industries Inc. in Southwick told BusinessWest an old building was demolished to make way for the new, 11,000-square-foot pharmacy, and contractors are creating retaining walls because they lowered the grade of the land to provide enough space for parking.

“Roughly 90% of the vendors we’re using are local companies,” said site superintendent Gordon Webster of Bass Hatfield Construction, the general contractor for the project, adding that Southwick businesses already working or soon to be on the job include Southwick Electric and Brasca Plumbing as well as a landscaper in town.

Meanwhile, Kearsage Venture Capital Co. recently completed construction of the largest solar farm in Western Mass. on Route 168.

“Agriculture is still an important part of Southwick’s identity, and this is just a different way of farming,” Stinehart said. “And the town is in the process of finalizing a purchase agreement to buy a solar farm north of here. We hope it will save us 15% on our electric bill.”

The new, 66-acre Whalley Park, built on donated land and leveraged with Community Preservation Act (CPA) funding, opened this summer and has increased the number of playing fields, which is important because the town didn’t have enough to accommodate demand.

“It’s a wonderful thing, and we are very fortunate because the private, nonprofit Southwick Recreation Center is right next door, which helps kids in town play on sports teams,” Deedy said.

The Polverari Southwick Animal Control Facility was also finished late last year, which meets another need as it replaced an outdated structure.

“We’re doing all we can to make the community an attractive place to raise a family,” Stinehart noted, adding that $69 million was spent over the past few years on renovations to the town’s schools which are almost complete, and a new track was built with private donations and CPA funds. Plus, the Conservation and Open Space committees have used state and CPA monies to acquire land for agricultural use because there is growing demand for it.

New small businesses are also opening, and two restaurants have new owners. D’Georgio’s is expected to open by Labor Day in the former Brew Too building on Westfield Street, which has been repurposed, and the former Salmon Brook Restaurant on Point Grove Road near Congamond Lake was recently purchased and will reopen as the Legends of the Lake.

The selectmen added that the town offers wonderful opportunities for recreation.

“We pride ourselves on our recreation, which ranges from boating to golfing and open space where people can hike,” Stinehart said. “We have two public marinas and a boat launch on the Congamond Lakes, and a dedicated committee makes sure there is a freshwater fishing tournament there every weekend. There is also the 6.3-mile Southwick Rail Trail, four golf courses, a miniature one, and two campgrounds. Southwick is the home of motocross, we have a very active Parks and Recreation Committee, and the Conservation Commission has acquired land that will be used for parking which will provide better access to the segment of the Metacomet Trail that runs through town.”

Residential construction is also on the rise, and land is being cleared for a 26-home development called Noble Steeds. “It was permitted, then shelved due to the downturn in the economy,” Stinehart said. “There are also a significant number of single lots being developed along major roads.

“The housing market is slowly turning around, and a dozen lots in a private community are being developed around the Ranch [golf course], and with our lucrative tax rate, people can afford to build their dream home,” he went on. “The Shops at Gillett Corners were also sold within the last two years, and the new owners have invested money because they see the future in Southwick.”

Deedy noted that the single tax rate has been a great selling point for the town.

“We’re taking a balanced approach to growth,” he explained. “Our planning board is composed of a group of very dedicated individuals, and we are very cautious and deliberate in making any zoning changes. But few are necessary, as permitted uses for land have already been identified; we look at other communities to see what works and what doesn’t.”

Officials don’t expect the MGM casino in Springfield to affect their community much, other than increasing the flow of traffic from Connecticut. “We will evaluate it in the future to see if we are eligible for any funds and will revisit the issue at that time to see if it affects our infrastructure,” Stinehart said.

However, Deedy pointed out that Southwick is only 15 minutes from Springfield, and its low tax rate may prove attractive to businesses that support the casino. “They may want to relocate to the suburbs once it is built.”

Formulated Plan

Deedy added that efforts put forth by the town have been aimed at future development.

“We have plenty of land available, and if people can afford it, they should buy it now while it is still inexpensive,” he said. “Members of the select board are always available to talk to people; the last thing we ever want to hear is that someone who owns a company or wants to open one looked at Southwick, but it was too difficult to do business there.”

Which seems unlikely, because officials strive to promote their town and encourage growth in this rapidly growing community.

Southwick at a glance

Year Incorporated: 1775
Population: 9,629
Area: 31.7 square miles
County: Hampden
Residential Tax Rate: $16.94
Commercial Tax Rate: $16.94
Median Household Income: $78,476
Family Household Income: $89,970
Type of Government: Open Meeting; Board of Selectmen
Largest Employers: Big Y World Class Markets; Whalley Computer Associates Inc.

* Latest information available

Community Spotlight: Agawam Builds on its Family Friendly Character

By
Community Spotlight Features

Mayor Richard Cohen, seated, and Marc Strange


Mayor Richard Cohen, seated, and Marc Strange, the city’s new director of Planning & Community Development, say redevelopment of the Walnut Street Extension area remains a priority.

When you ask Mayor Richard Cohen to talk about Agawam, the city that still likes to be called a town, be prepared for a non-stop, enthusiastic, 30-minute sales pitch for the community where he has lived for the past 27 years, and served as mayor for seven non-consecutive terms.

And while that might be expected from the individual sitting in the corner office, especially someone who has invested so much time and energy in the city, Cohen said his enthusiasm — and optimism about what’s next — are well warranted.

The fifth-largest Hampden County community in population (neck and neck with West Springfield at around 28,000), Agawam has long endured the image of a town dominated by industrial parks, condos, strip malls, farms, golf courses (there are four of them), and, of course, the largest amusement park in New England. But is is fast becoming known for much more.

Indeed, while Cohen places great value in the town’s fully occupied Agawam Industrial Park, and in the town’s measures to preserve open farm space, his enthusiasm level rises to a new height when he talks about Agawam’s new School Street Park, a 50-acre project he calls “the largest development of its kind in the region in the last 25 years.”

The first phase of the park opened in 2008, with basketball courts, playing fields, play-scapes, and baseball fields. In early July, a ribbon-cutting was staged to open the second phase of the park, which features a concert band shell, a spray park, a disc golf course, a volleyball court, a large pavilion and numerous smaller shade pavilions, and walking trails throughout the park.

“This is truly a park for all ages,” noted Cohen, “and a great example of how family friendly the town of Agawam is. That’s what I want the image of Agawam to be.”

The park has been drawing great crowds in the few weeks that the second phase has been open, said Cohen, whose enthusiasm is also evident when he talks about the new, two-acre dog park, off Maple Street, scheduled to open in the fall. The facility is being built through a $250,000 grant from the Stanton Foundation.

What makes Agawam special though, says Cohen, and differentiates it from a lot of other communities, are taxes and services.

“Agawam has the lowest split tax rate in the area, but we’re able to deliver a lot of services for that money. The residents of Agawam get a great bang for their tax buck. Our schools are fully funded, and we have a great, Level-2-rated school system. We provide full services with no fees. We have weekly trash pickup with no fee, and free kindergarten for every student.”

One of the results of Agawam’s low tax rate and high-service government, said Cohen, is the stability of the town’s residential real estate values.

“When you buy a home in Agawam,” he said, “your investment tends to hold its value very well because of the efficiency of our taxes and services. Our community is one of the safest in the Commonwealth, and we’ve got a great school system. This is what families want.”

The engine that makes all this possible is Agawam’s industrial tax base.

With a fully occupied Agawam Industrial Park and nearly full Shoemaker Industrial Park, Agawam benefits from tax receipts as well as employment opportunities generated by a healthy list of companies that would be the envy of many area towns. Cohen rattles off names like OMG, the largest manufacturer of roofing fasteners in the world, HP Hood, Southworth, Sound Seal, Ebtec, Simmons Mattress, Fisher Scientific, and Six Flags.

“Who wouldn’t love to have Six Flags, one of the biggest attractions in the country, right there on Main Street in your town,” Cohen said proudly. “It’s been a great asset to the town, in terms of revenue, tourism, and job opportunities, especially for our young people, and that’s important.”

Being Industrious

To talk about the next big project on the table for Agawam, Cohen introduced the town’s new Planning & Community Development Director, Marc Strange, who took over the job three months ago from 32-year veteran Deborah Dachos upon her retirement.

Strange, formerly a private practice attorney, will be heavily involved in the long-awaited project to redevelop the Walnut Street Extension area, long a source of frustration and stagnation.

“Our vision is to turn this into a downtown pedestrian walking area,” said Strange, “with retail shops, housing, professional services, restaurants and green spaces, and make it a focal point of Agawam.”

Cohen acknowledged that such talk has been going on for years, if not decades, but there is renewed optimism that something can be done in this once-thriving retail area.

“This is a project that’s been on the drawing board for many, many years,” said the mayor, “but now we’re making some real progress, and I’m confident we can make it happen.”

The need for a “more-focused, city-center shopping area” is echoed by long-time Agawam business woman Kate Gourde, owner of Cooper’s Gifts, Apparel and Home and the developer of the adjacent Cooper’s Commons, an eclectic mix of shops and services housed in the former Country Squire Furniture building on Main Street.

“Agawam is a great town and a wonderful place to do business,” said Gourde. “But we’re not thought of as a great retail destination because our stores are spread out along many different streets.”

Kate Gourde, developer of Cooper’s Commons

Kate Gourde, developer of Cooper’s Commons, says Agawam needs a more focused shopping area to become a true retail destination.

Gourde, who has been running the family business for 28 years, said she welcomes competition from new stores that might open in the redeveloped Walnut Street Extension area. “I think it would be great for business and for everyone in Agawam, and I fully support it. We can really use a downtown retail center.”

Another factor in Agawam retailing that can’t be overlooked, is the effect of the Big E, the 17-day September fair that has grown into one of the largest fairs in the country. The Big E, in West Springfield, is literally a stone’s throw from Main Street in Agawam. When asked about it, Gourde just smiled and shrugged.

“Well, the Big E was here long before we were, and yes, it hurts our business for two weeks like it does most stores in town,” she told BusinessWest. “But we don’t whine about it. Over the years we’ve learned how to market a bit differently during the Fair, to the point where it’s not a huge factor anymore. In fact, it’s a great time to shop at Cooper’s Gifts.”

Kathy Ayre, owner of Ayre Real Estate, also on Main Street, disagreed slightly with Cohen’s assessment of the stability of residential real estate in the town. “We went into a downturn in 2005, just like the rest of Western Mass did, but that has gradually been leveling off,” she said. “And this year has been great. We just had the best quarter we’ve had in the past 10 years, and it’s still going in July.”

Ayre, whose company is traditionally one of the leaders in market share of Agawam real estate adds, “the mayor is correct though in that, compared to many other towns around, residential properties in Agawam do tend to hold their value very well.”

She cites the low tax rate, excellent school system, and the town’s services, as the main reasons for Agawam’s healthy residential real estate market. “It’s a great place to raise a family,” she said, “and it’s also a great location, abutting Connecticut. Suffield is an upscale town and we get a lot of business from Connecticut people looking to lower their costs or get more house.”

Ayre also cites easy access to the area’s highways and to Bradley International Airport as factors in the town’s location.

Like every other greater Springfield community, Agawam awaits the impact of the MGM Casino opening, two to three years down the road.

“I don’t know,” Cohen said flatly when asked to gauge its potential impact. “But we’re going to find out; we’ll be doing some baseline studies on a number of factors, to help us assess the impact during our ‘look-back’ intervals, to see if additional mitigation is warranted.”

Regaining his normal optimistic enthusiasm, Cohen added, “I hope the casino does great. I hope it’s a tremendous success for Springfield, because all of the surrounding towns benefit from a healthy, robust Springfield.”

Gourde looks upon the MGM Casino as an opportunity for Agawam businesses. “I don’t think it will hurt our business in any way, and I’ll be happy to take my shot at getting some of those casino patrons across the river and into our shops.”

Ayre is pragmatic. “No one knows if the casino will have any effect on the real estate market, but I really can’t see it hurting us. The one thing I do know, is that the town of Agawam will be here long after the casino opens, and it will still be a great town for families to live in.”

The Bottom Line

That last comment brings the discussion about Agawam full circle.

While officials there are looking for change, especially with the problematic Walnut Street Extension area — and the retail scene in general — one thing they don’t want to change is that image of being family friendly.

And that character trait extends well beyond the rides at Six Flags.

Agawam at a glance

Year Incorporated: 1761
Population: 28,608
Area: 35.75 square miles

County: Hampden
Residential Tax Rate: $15.74
Commercial Tax Rate: $28.29
Median Household Income: $49,390
Family Household Income: $59,088 (2013)
Type of government: Mayor; City Council
Largest Employers: Six Flags New England, OMG Inc., Agawam Public Schools
* Latest information available

Chicopee’s New Development Czar, Mike Vedovelli, Gets Down to Business

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Features
Mike Vedovelli

Mike Vedovelli

Arriving at a Crossroads

In April, Mike Vedovelli found himself in a place he wasn’t expected to be — the market for a new job. But just as the Baker administration has gone in a new direction with the Mass. Office of Business Development, which Vedovelli served as Western Mass. liaison, he has gone in one as well. He’s the new director of the Community & Economic Development for Chicopee, and believes he’s in the right place at the right time, from a career-challenge perspective.

Mike Vedovelli says he was taken somewhat by surprise in March when he was told that his services to the Mass. Office of Business Development (MOBD) were no longer required.

But he added quickly that he always understood that the job he held for more than seven years existed at the whim of whoever was governor, and when it came to the MOBD, the Charlie Baker administration decided it wanted to go in a different direction.

The ensuing, and unexpected, job search was undertaken with a mix of trepidation — Vedovelli said he had never been unemployed before — but also a certain dose of confidence that resulted from the experience amassed and contacts made while with MOBD and also while working for nearly a decade in the Community Development office in Westfield.

Together, those resume stops provided skills he considered salable to both the public and private sectors, and as things turned out, he was right. There were several intriguing calls, he noted, adding that the one that stood out came from Tom Haberlin, an economic development consultant for Chicopee, who wanted to know if Vedovelli had any interest in running the department that he once headed for more than 15 years.

To make a somewhat long story short, he did.

And in mid May, Vedovelli became director of Community & Economic Development, a relatively new title in Chicopee and a job with a wide range of responsibilities.

Discussing the sum of those parts, Vedovelli said his new assignment puts him in the right place at the right time from a career-challenge perspective. This is the area’s second-largest metropolitan area, one of the state’s so-called Gateway cities, and a former manufacturing center — everything from tires to bicycles; from golf balls to military uniforms have been produced there — that is in many ways trying to reinvent itself.

Among the projects in various stages of progress are efforts to redevelop the former Uniroyal site and the area surrounding it — a problem that has challenged officials in City Hall (including a half dozen mayors) for roughly 35 years; continued revitalization and reshaping of the Memorial Drive retail sector; efforts to resurrect a long-moribund downtown; and plans to build another industrial park near Westover Air Reserve Base.

Overall, though, Chicopee faces the same basic economic development mission as other area communities — retaining existing companies, attracting new ones, and creating more of what has become the region’s most precious commodity — jobs.

the former Uniroyal facility

Mike Vedovelli says redevelopment of the former Uniroyal facility has been a challenge in Chicopee for more than three decades, and it remains a top priority.

And that mission dovetails nicely with Vedovelli’s work with MOBD, where he worked with businesses large and small that were looking to come to Western Mass. — or remain here despite various challenges confronting them in their efforts to do so.

Thus, he intends to call on those experiences, as well as those in Westfield, where one of his primary duties was overseeing deployment of community development block grants, as he takes on his new position.

“This position was attractive because I’m from Springfield, I know this area, I’ve done this kind of work before in Westfield, and I’m versed with local issues and matters such as community development block grants,” he explained. “And my seven years with the state enables me to bring the connections and the business relationships that I have, both on the state side, but also with commercial lenders, commercial brokers, and national and local developers.”

For this issue, BusinessWest talked with Vedovelli about his new assignment, the many issues confronting Chicopee, and the unique perspective he brings to his latest career stop.

Arriving at the Crossroads

As MOBD’s Western Mass. liaison, Vedovelli had a large and diverse territory to cover — essentially everything from Worcester west.

Initially, he needed a GPS system to find some of the communities he was assigned to and businesses with growth issues that needed resolution. He said he eventually figured out the lay of the land, a phrase that, as he applied it, meant more than just geography.

“It was a terrific learning experience,” he said of his time with MOBD. “I learned a lot about the issues businesses are facing and what they need to reach their goals. Working with them to find ways to stay in Massachusetts and grow their ventures was very rewarding work.”

And in the course of doing it, he made a number of contacts on the local, regional, and state levels, and came to understand the value of public-private partnerships when it came to creating economic development opportunities.

When his time with the state abruptly ended, he put out some feelers, and got some phone calls and e-mails back. Some of the correspondences involved opportunities that might develop down the road, while others were more immediate and thus more intriguing.

And it was the chance to lead Chicopee’s various development initiatives that most appealed to him.

“This city is in an interesting place in its long history,” he explained. “It’s a Gateway city, and it’s facing the same issues that those other Gateway cities are facing — job creation, redeveloping old mill buildings, revitalizing once-vibrant downtowns — but it has some unique challenges as well.

“But this city has enormous potential,” he went on. “Look at a map and you’ll see that all the major highways run through it. This is truly the crossroads of the region.”

And the city has reached a crossroads in a figurative sense as well, he went on, adding that while there is some land for development — such as the Chicopee River Business Park on the border with Springfield — city officials need to ready more property for development, a reality that puts an exclamation point behind such efforts as the proposed new industrial park and efforts to repurpose the Uniroyal site.

While he has a great deal of learning still to do when it comes to Chicopee, its players, opportunities, and challenges — he’s spent considerable time in recent weeks meeting with business owners, chamber leaders, and elected officials — Vedovelli was already quite familiar with the city when he took over the large office in the space the city leases on Center Street.

Indeed, he had worked with several individual companies in his capacity at MOBD, and from those experiences came to appreciate that ‘crossroads’ quality the city possesses, something that made it very attractive to companies looking to locate — or relocate — within Western Mass.

Perhaps the best example is Menck Windows, the German manufacturer that settled on Champion Drive in Chicopee as home to its first U.S. operation.

“I had been working with the principals of that company for a while when they were trying to zero in on an area,” Vedovelli explained. “And Chicopee just hit all the right buttons.

“One of the key assets that the city has is Chicopee Industrial Light and the cost advantages they bring,” he went on while listing the many factors that went into Menck’s decision process. “Things like that are very attractive to private industry, and Chicopee has many assets like that — location, access to major highways, an inventory of desirable buildings in the industrial parks that businesses can move into, attractive commercial property tax rates compared to other cities in the area; it’s an attractive package.”

And it has appealed to other clients as well, he said, listing other companies he worked with, such as Lymtech Scientific, which landed on Westover Road, and Chemex, the coffee-maker manufacturer that relocated to the city from Pittsfield last year.

Selling Points

Meanwhile, Chicopee, Holyoke, and Westfield have long been part of the same consortium when it comes to federal housing funds, and the communities are in the same economic target area, he explained, adding that he has experience working with officials in all three cities.

“Long before the buzzword collaboration started getting tossed around back in the early 2000s, we were already collaborating with each other,” he explained.

Looking ahead, Vedovelli said his informal job description is to forge more of those collaborative efforts, and do more hard selling of all Chicopee’s many assets, but from a different office.

He said there are a number of economic development issues facing the city, none larger, more complex, or more historic (in every sense of that word) than the Uniroyal project.

The complex of buildings once dominated the area near the Chicopee River in the Chicopee Falls section of the city, and in many ways, it still does. Some of the factory buildings have been torn down, others are in the process of demolition, and still others, especially the administration building, are targeted for possible reuse.

Since Uniroyal announced it was closing the massive plant in 1980, the city has been involved in an ongoing saga involving everything from taking control of the property to clearing it of hazardous materials; from demolishing the various buildings to devising redevelopment plans; the site was even proposed as a possible site for a new Catholic high school (it was eventually rejected).

It’s been a complicated, frustrating, and very expensive process, said Vedovelli, adding that it is now in the critical phase where the city will attempt to address the question ‘what comes next?’

There are many possible answers, he told BusinessWest, noting that while the new Pope Francis High School is off the table (it will be built on the site of the old Cathedral High School in Springfield) most everything else still is.

That includes the possibility of senior housing or another form of residential development in the former Uniroyal administration building, which is still in good shape and fit for redevelopment.

“There’s a lot of moving parts with this initiative — it’s a work in progress,” he said, adding that a request for proposals will likely be issued for the administration building this summer, and other RFPs will follow for other parcels.

Another priority moving forward is downtown, said Vedovelli, noting that while Chicopee’s central business district is less defined — and was never as robust — as those in other communities, it has potential to become more of a destination.

“The Munich Haus has become a real draw, it brings people downtown,” he said of the German restaurant on Center Street. “We’re looking at attracting another restaurant so they can feed off one another. But overall, we need to look at the storefronts, determine what’s working and not working, and make the area more attractive.”

One possible key to progress in that area is creating more foot traffic through new housing developments, he went on, adding that while there has been little progress with regard to the massive Cabotville Industrial Park and reported efforts to convert some of its space into apartments or condos, there is more promising news on the vacant John R. Lyman mill off Front Street.

“There’s a developer who wants to place 50 to 70 live-work lofts there, which would be a really nice addition to the downtown.” said Vedovelli, adding that a larger population of people living in that area would create a need for additional service and hospitality-related businesses.

Progress Report

As 2015 got underway, Vedovelli could not have envisioned himself tapping a pen on an aerial photo of the Uniroyal plant five months later while discussing possible options for the site’s future. Nor would he have imagined himself mulling strategies for bringing that desired foot traffic to downtown Chicopee.

But circumstances changed the picture in a hurry, and instead of driving across a four-county region hoping to spur economic development, he’s doing essentially the same job on a smaller, yet dynamic playing field.

It’s an abrupt change in the course of his career, one that has taken him to a crossroad — literally. It is not a challenge he sought, necessarily, but one he fully embraces.


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

Making a ‘Big’ Difference

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Features
BBBS Thrives Through the Power of Partnerships

Big Brothers Big Sisters of Hampden County, like the agency’s 370-odd other affiliates, specializes in creating matches that ultimately provide learning experiences for mentors and mentees alike. To do that, the organization relies on partnerships with a host of constituencies, but especially the business community.

Sergio Dias, seen here with Angel

Sergio Dias, seen here with Angel, says the ‘littles’ he’s mentored through BBBS have inspired him and motivated him to think differently about the problems he’s confronted.

Sergio Dias was asked about what he does with and for the young people he mentors through his participation with Big Brothers Big Sisters of Hampden County (BBBSHC).

He said much depends on the individual in question — he’s served as a ‘big’ to many of them over the years — and the issues they’re dealing with at the time. But many times, he noted, he’s advising the young men on college, everything from why it’s important to the nuances of an application form.

“Some of them just need support based on the issues they’re facing at home, while for others, it’s more about getting them ready for college, including all the paperwork that’s related to getting accepted to a school,” said Dias, an analyst in the Marketing Department at MassMutual. “For others, it’s helping them figure out what they want to do, what their skills are; I’m helping them find themselves.”

He started to elaborate, but quickly changed the tenor of the conversation, focusing on what his interaction with these ‘littles,’ as they’re called, has meant to him. And he stressed that this is an equally important part of the equation.

“Initially, I thought I was giving back — sharing my knowledge and experiences,” said Dias, who is currently mentoring Angel, who will start his freshman year at Springfield College in a few weeks. “But I was really surprised by how much I was learning from them, even though I have three kids of my own. Many times, I’ve been inspired by what these kids have going on in their lives and their outlook and perspective on things. I think I have issues and problems, and I see the issues they’re dealing with and how they’re confronting them, and it really motivates me to think differently.”

Heather Bushey, assistant director of Continuing Education at Bay Path University, can certainly relate.

She’s been a ‘big’ to Springfield resident Destiny for eight years now, and has watched her grow from a young girl in the second grade to a young woman soon to enter her junior year of high school.

Destiny has grown in a number of ways, obviously, but so, too, has Bushey.

“I’ve learned a lot about myself, that’s for sure — about my limits and abilities and what drives me as far as motivating factors and seeing her grow and benefit from the program,” Bushey told BusinessWest. “It’s a very rewarding experience, and it has certainly helped me grow as a person.”

Heather Bushey

Heather Bushey, right, has been a mentor for Destiny for eight years now.

In many ways, these stories are typical of those who become involved with Big Brothers Big Sisters of America, or BBBS, the working acronym for the nearly 100-year-old organization. And more of them are being written each year for the Hampden County affiliate, which could also be described with that adjective typical.

Indeed, it is like other BBBS chapters in that it:

• Serves an area that includes urban centers populated by large numbers of young people who are living in single-parent households or with grandparents or other relatives, and are very much in need of a positive role model and mentor;

• Struggles mightily to meet the demand for individuals — professionals and retirees alike — who are willing and able to serve in those roles. David Beturne, executive director of BBBSHC, said the chapter now serves roughly 225 young people at any given time, but could, if it had the needed resources and demand, serve twice that number; and

• Is very much dependent on partnerships with the community, especially the business community, to carry out its vital work. Indeed, BBBSHC has forged relationships with corporations and institutions ranging from MassMutual to Bay Path; from St. Germain Investment Management to Veritas Preparatory Charter School in Springfield, to effectively serve area young people.

The obvious goal moving forward, said Beturne, is to close that large gap between the number of young people who need mentoring and those who currently can be served. And to do that, the organization must generate more resources — each match between a ‘big’ and ‘little’ costs about $1,000 — and therefore create more of those critical partnerships.

For this issue, BusinessWest takes an in-depth look at the Hampden County chapter of BBBS to gain an appreciation not only for this organization’s broad mission, but how the business community plays a huge role in carrying it out.

Striking a Match

On the day that BusinessWest caught up with Bushey and Destiny for a few photos, they were on their way to dinner, although the specific destination was still to be determined.

They dine out together regularly, said Bushey, adding that they also frequent area malls — “Destiny loves to shop” — venture out for frozen yogurt, and take in various cultural events. They’ve been to downtown Boston, the beach, and a host of other destinations.

That list includes the Bay Path campus in Longmeadow. Bushey said she’s taken Destiny there several times with the goal of familiarizing her with that lifestyle and cementing a college education as a goal worth committing to.

“Right now, school is a tough experience for her,” said Bushey. “I try to get her to focus on setting goals for herself; we talk a lot about future goals and plans, with the hope that college will be part of that. I want to expose her to it now so she can start thinking about it.”

Relationships like the one between Bushey and Destiny are somewhat rare, at least in terms of this one’s duration, but, as stated earlier, typical in the way in which both the mentor and mentee learn from one another and grow personally.

Writing such scripts is the singular purpose behind BBBS, said Beturne, adding that it’s a reality, and a sad one at that, that there will always be a need for this organization, and that there are more young people who need help than there are individuals receiving it.

Addressing this reality is the core mission of the 370-odd BBBS affiliates, said Beturne, noting that the Hampden County chapter was launched nearly 50 years ago (1967) and has evolved greatly over the ensuing decades.

BBBSHC is one of several affiliates in Western Mass., but easily the most urban of those organizations, he explained, adding that Hampden County includes the area’s three largest cities — Springfield, Chicopee, and Holyoke — and some of the state’s poorest communities.

But the need for the agency’s services extends to each city and town in the county, Beturne went on, adding that this need is met through several initiatives, but primarily both community-based matching programs and site-based initiatives, which, as the name suggests, involves mentors visiting mentees at a specific site, such as a school, YMCA, or college campus.
In Hampden County, the specific programs are:

• The community-based model, used nationwide, whereby matches (such as Bushey and Destiny) spend at least eight hours a month together for at least a year and participate in all types of activities in the community;
• ‘Lunch Buddies’: During the school year, matches meet for lunch weekly at the child’s school for about 30 minutes;
• ‘Mentor Springfield’: During the school year, matches meet weekly for one hour at three Springfield middle schools. Activities ranges from writing in journals to working on homework; and
• The ‘Pathways Program’: Also during the school year, eligible students from Springfield’s Putnam and Sci Tech high schools meet with mentors from MassMutual (such as Dias) once a week for 50 minutes (more on this initiative later).

David Beturne, left, seen here with BBBSHC Director of Development Jesse Vanek

David Beturne, left, seen here with BBBSHC Director of Development Jesse Vanek, says the need for ‘bigs’ far exceeds the supply.

“We’re taking students from Sci Tech and Putnam and going to MassMutual’s main campus,” said Bertune, referring to that last program, obviously unique to this affiliate. “They’re seeing their big brother or big sister there. It’s a career-pathways program with a curriculum to it; we’re looking to immerse these students into the culture of MassMutual, where they learn what the company is and what it does, and how they might be able to make a career out of insurance.”

Results obviously vary with each individual, but a recent study conducted by the national research firm Public/Private Ventures in Philadelphia revealed that participants in BBBS programs are 46% less likely to begin use of illegal drugs, 27% less likely to begin using alcohol, 52% less likely to skip school, 37% less likely to skip a class, 37% less likely to hit someone, and, overall, more confident of their performance in school and better able to get along with their families.

Unfortunately, demand for mentors far exceeds supply, said Beturne, adding that, while BBBSHC serves about 400 young people a year, there are maybe 225 to 250 matches at a given time; some matches close out because the child reaches a certain age or moves out of the area.

“Demand is huge — I would like to serve at least 500 children in Hampden County, doubling our capacity,” he said. “If we could do that, I would be happy with that — I wouldn’t be satisfied totally, but I’d be happy.”

Escalating demand — there is currently a waiting list for mentors with upwards of 80 names on it (and that’s typical) — and a desire to meet it were the primary motivations behind creation of the site-based initiatives, said Beturne, adding that they allow more young people to receive mentoring services and more busy professionals to get involved in some capacity.

“As we were out doing recruitment, trying to get people to volunteer for the [community-based] program, the one thing we always heard was, ‘I’d love to, but I’m busy — I work, I have a family, I’m doing this or that,’” he explained. “So we started doing the school-based program, where a volunteer can see a child in school during the day. People are able to go out on their lunch break and spend 40 to 45 minutes with a child, maybe more.”

The Power of Relationships

Returning to his comments about how his participation with BBBS has helped him grow as an individual, Dias said he’s worked with six young people over the years, and each one has taught him something about life and how to deal with all that it can throw at you.

Dan Morrill

Dan Morrill says Wolf & Co. has supported BBBS in many ways, including the large team that took part in the annual bowl-a-thon.

He singled out ‘John,’ a 17-year-old he mentored a few years ago, who displayed an attitude, maturity, and sense of determination that belied his years.
“It felt like I was having a conversation with a 40-year-old,” Dias recalled, noting that the Springfield resident told him at their first meeting that he was determined to overcome a host of problems at home and not only graduate from Sci Tech High School and go to college, but graduate as a junior — and be valedictorian.

“At first I was like, ‘OK, yeah, sounds great … I’ll support you in any way I can,’” Dias said. “By the second month, I remember thinking, ‘he’s going to do it.’ He faced all kinds of challenges — the school didn’t want to let him do it at first, there were a lot of issues at home — but he did it. He got all kinds of scholarships I helped him with, and now he’s thriving at UMass. He was such an inspiration to me.”

Certainly not all stories involving BBBS participants involve such happy or unlikely endings — or beginnings, depending on one’s outlook. But everyone who takes part in this program benefits in some way, said Beturne, adding that the simple goal, again, is to enable more people — big and little — to take part.

And this brings him back to partnerships, all of which in some way enable BBBSHC to meet its mission and broaden its impact.

One such partnership has been forged with Bay Path, and it’s taken on many forms in recent years — from escalating participation in the annual BBBS bowl-a-thon, its largest annual fund-raiser, to the agency being named the school’s designated charity for the 2014 holiday party — but especially with Bay Path students going into Veritas Charter School as ‘bigs,’ creating 20 more of those all-important matches.

“Veritas is very much a college-preparatory school — their mission is to get students to move on, to graduate from high school and attend college,” said Beturne. “Being able to have Bay Path students go into the school and share their experiences — many of the school’s students are first-generation college attendees — is a win for Big Brothers Big Sisters, Veritas, and Bay Path. Their students are able to gain exposure and give back, and students at Veritas are able to see this real world, too.”

Rachel Romano, founder and executive director of Veritas, agreed, noting that students at the school participate with BBBS through the Bay Path initiative and others.

She said only 17 of the school’s roughly 240 students take part (again, demand is greater than supply), but those who do participate benefit from the relationship and the reinforced message concerning the importance of a college education and how it can become a reality.

“Our mission is to prepare our students for college,” she explained. “And what we love is the idea that these ‘bigs’ would stay with these guys and be a support person in their lives who would help them stay on the path to college once they leave Veritas.”

Carol Leary, long-time president of Bay Path, said the school is active with a number of area nonprofits, like BBBS, that reflect the its core values, enable its students to become active in the community, and support young people and education.

Several employers, including Bushey, have served as ‘bigs,’ while students have been doing site-based work at schools such as Veritas for three years, said Leary, adding that BBBSHC was this year’s designated nonprofit at Bay Path, and thus the focus of a well-orchestrated campaign of support.

“We go out to the community and ask if there is a nonprofit that they would like us to highlight and spotlight for Bay Path’s generosity at the holiday party,” she explained. “This year, Big Brothers Big Sisters had the most support of any nonprofit, so we chose them. They gave us a list of things of they need — everything from games for the children to books to gift cards so that the big brothers and big sisters can take a child to Friendly’s — and we send that list to the people at Bay Path, who make donations.”

Case in Point

Another key relationship has been forged with MassMutual, which had a desire to add a case-management component to an existing but evolving mentorship program, and found a willing partner in BBBSHC.

“We wanted to look at mentoring somewhat differently, and look at how we could use mentoring as a method to help focus students on college- and career-readiness issues,” said Pam Mathison, a community-responsibility consultant for the company who specifically focuses on education programs within the city of Springfield, as she talked about the corporation’s larger Career Pathways initiative.

“Initially, we started working with Mass Mentoring Partnership, and they helped build the model along with Springfield School Volunteers and the Springfield School Department,” she went on. “As we got into the experience, we determined that we needed a mentoring partner whose job is the management of a mentoring program, and for that, we approached Big Brothers Big Sisters.”

The motivation for the partnership was to improve the overall experience for both the students and the mentors, she went on, adding that this has certainly happened since the relationship began more than three years ago.

Roughly 40 employees across virtually all departments and all levels within the corporation have made a three-year commitment to serve as ‘bigs,’ said Mathison, adding that students, like Angel, are recruited during their freshman year and essentially begin work with their mentor during their sophomore year.

As with Bay Path’s initiative, there are multiple winners in this scenario, including the company, which is always mindful of creating a pipeline of future employees, the students themselves, and BBBSHC, said Beturne.

He noted that the organization benefits from partnerships with companies large and small, whose employees make donations ranging from stints as ‘bigs’ to service on the board of directors, to raising money through the annual bowl-a-thon.

St. Germain is one of those companies, and its president, Michael Matty, said the support stems from need, but also from the results generated by the agency.

“I have a high level of involvement with a lot of organizations, but rarely do I see people more passionate than those at BBBS,” Matty said. “I love passion; their passion is one of the reasons we are involved. But as a businessperson, I also recognize that passion is perhaps pointless if there are no results.

Mike Matty

Mike Matty says BBBS might fly under the radar, but its impact on the lives of underprivileged youth will reap long-term benefits across the region.

“BBBS is an organization that produces results,” he went on. “They perhaps don’t get the recognition that I feel they deserve because their results are impacting youth, and underprivileged youth at that. Their mission is to help the kids who will be an integral part of our local community, where we all work and run businesses. We can’t lament the local situation without working at doing something to change it, which is what they do every day.”

Another prominent local partner is Wolf & Co., the Boston-based accounting firm with a large Springfield presence.

Dan Morrill, CPA, a principal responsible for the company’s Professional Practice Group — and a one-time ‘big’ — said the company’s support comes in many forms, from his service on the board of directors to a large, company-wide turnout for the bowl-a-thon.

“The first year we had a bowling team, I think we had three people — this year, we had about 70,” he explained. “That speaks to how the company values the important work Big Brothers Big Sisters does within the community. Giving back is a big part of the culture at Wolf, and this organization has always been one of those we choose to support because it is really making a difference within the community.”

Work in Progress

Bushey told BusinessWest that young people “age out” of BBBS when they reach 19. By that, she meant that the formal relationship between the ‘big’ and ‘little’ ends.

Often, however, a new one begins, she said, adding that the young people sometimes remain active with the organization in several ways as alums, while staying in touch with their mentor.

“I definitely anticipate remaining involved with Destiny,” she said, adding that she doesn’t know what the future holds for her, but intends to keep providing whatever support she can.

In a nutshell, that’s what this organization is all about — people stepping up, getting involved, and positively influencing young lives.

It takes individuals with time, energy, and commitment to make such a difference, but overall, it takes a community to enable this agency to meet its all-important mission.

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

Community Spotlight: East Longmeadow

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Community Spotlight Features
East Longmeadow Touts Residential, Business Gains

By GERRY FITZGERALD

Paul Federici

Paul Federici says East Longmeadow’s strong balance, in the form of both residential and commercial growth, has made it an attractive location for businesses.

When asked to list the most pressing problems in his community, Paul Federici, chairman of the East Longmeadow Board of Selectmen, paused, then grimaced slightly as he tried to think of matters that might fit that description.

Finally, he shrugged and almost apologetically offered, “well, we’ve got two issues on the horizon that we’re going to have to deal with, but I’m not sure I’d say either one is a problem.”

And if they are problems, they could well be placed in that category of ‘good problem to have,’ he told BusinessWest, referring to a recognized need to build a new high school and an ongoing study to determine if this town of 16,000 people should change its form of government, from the present three-member Board of Selectmen to a mayor, town manager, or other format.

“As much as I enjoy being a selectman, we’ve got a $50 million corporation here, and it may be time for full-time professional management in town,” said Federici, adding that the two issues he mentioned are tied directly to the town’s strong recent pattern of growth, both commercial and residential.

And there are many reasons for both — everything from available, buildable land to an attractive location near several affluent communities; from an alluring commercial tax rate to a host of quality-of-life amenities (everything from the attractive parks to the region’s largest Fourth of July parade) — that collectively make this an attractive place to live, work, and launch a business.

“The town continues to grow,” said Federici. “Homes are selling in all price ranges, from the smaller starter homes on up to the high-end luxury homes in the developments off Prospect Street, which is a very positive sign, and the business climate here has probably never been better.”

East Longmeadow businessman John Maybury, president of Maybury Material Handling, located in the Denslow Road Industrial Park since 1981, echoes Federici’s comments about East Longmeadow’s commercial economy.

“The industrial park is just about completely filled,” said Maybury, “although there still may be a couple of buildable parcels left. The Deer Park industrial area just south of Denslow is also growing nicely, and all of these companies are doing very well. And, of course, we still have the big ones, Hasbro and Lenox, which has invested $60 million in the plant since its purchase by Newell Rubbermaid in 2003.”

Federici pointed to recent newcomers to town as great examples of the positive business climate of East Longmeadow. He listed the Arbors Day Care, WhiteStone Marketing Group and Go Graphix, a new self-storage facility, Toner Plastics, All Hose Inc., and the recently opened, $15 million Philip H. Ryan Health Science Center of Bay Path University on Denslow Road.

Bay Path’s first physician-assistant class to use the new building graduated in May. “It’s great to have Bay Path University in town,” said Federici. “The new building is fabulous, inside and out, and we’re proud to have it in East Longmeadow.”

That facility is one of many recent success stories recorded in town, and, for this latest installment of its Community Spotlight series, BusinessWest chronicles many others while speculating on what might come next.

In Good Company

Asked to pinpoint the core reason why East Longmeadow is thriving financially — the town’s bond rating is at its highest point ever — and has become an attractive landing spot for families and businesses alike, both Federici and Maybury repeatedly used the word ‘balance.’

“It’s the great balance we have between the commercial, retail, and residential sectors that makes East Longmeadow unique,” noted Maybury. “We’ve got some huge industrial companies, and big employers, in Hasbro and Lenox, along with a great mix of large and small commercial firms in the industrial parks, several thriving retail areas, and a growing residential market. That’s a great mix.”

Federici concurred. “That balance is why we have a strong tax base and reasonable taxes, good infrastructure, and good schools,” he told BusinessWest. “It’s why East Longmeadow is a great town for families.”

And for businesses as well, he added, noting that growth has come in virtually all sectors of the economy, from manufacturing to education.

That extends to the retail sector as well, said restaurateur Bill Collins, who, with his business partner, Michael Sakey, opened the Center Square Grill in May 2014.

According to Collins, the restaurant has far exceeded its first-year projections. “Knock on wood, of course,” he said with a grin, “but business has been great, better than we’d hoped for.”

He is quick to attribute much of the restaurant’s success to the centralized location of the town between Wilbraham, Hampden, Springfield, Longmeadow, and Somers, Conn.

“We draw our customers from a five- to 10-mile radius that cuts through five surrounding towns plus all of East Longmeadow,” he explained. “If you look at a map, the center of East Longmeadow is just a fabulous location for retail businesses, and all of the stores, restaurants, and services in the area are doing very well.”

He also credits the town government for creating a positive business environment. “When were first looking to open at Center Square, the Planning Department, selectmen, and the licensing people could not have been more helpful or more welcoming,” said Collins. “They bent over backward to help us get up and running as soon as possible, and that means a lot to a new business.”

Bring up the 100-pound gorilla that every Western Mass. restaurant is at least wary of, the MGM Springfield casino coming to downtown Springfield in a few years, and Collins says he is aware but not overly concerned. “We’re quickly creating many, many loyal, return customers,” says Collins. “We don’t see these people suddenly heading into downtown Springfield to eat at a casino.”

Federici has a similar reaction to the impact of MGM Springfield. “We’ll see,” he said with a shrug. “I don’t think the casino will have a huge impact on us. Two different impact studies, one by the Pioneer Valley Planning Commission and the other by the casino people, both predicted an increase in traffic in the town of about 6%. For a few hours on certain days, we may feel that, but I don’t think it’s going to be anything dramatic.”

Returning to those aforementioned ‘good problems to have,’ Federici said the School Department has concluded that the nearly 60-year-old high school, built when the town was roughly half its current size, is clearly in need of replacement.

“The selectmen gave the approval to the School Committee to go to the state for funding,” he said. “Last year, the project didn’t make the list of 100 or so building projects approved for partial state reimbursement, but it will be submitted again this year.”

Even if approved for partial state reimbursement, the new high school will be a costly burden for the town. “The estimated cost for a new high school is $80 million,” said Federici, “and some significant part of that is going to have to be picked up by the town. But that will be a problem we’ll overcome, and then, we’ll have a beautiful new high school for our children.”

The Bottom Line

As for a possible change in the town’s governmental structure, Federici chose to discuss it with humor, in the form of a story the town clerk once told some visitors to Town Hall.

“He told them, ‘East Longmeadow has a three-member Board of Selectmen and an open town meeting … the pilgrims had a three-member Board of Selectmen and an open town meeting.’ So maybe it is time to make a change.”

If one does come, it will be a clear sign — yet another one in a series of signs, actually — that this community is in a growth mode, and that the trend will only continue and accelerate.

East Longmeadow at a glance

Year Incorporated: 1894
Population: 15,720 (2010)
Area: 13.0 square miles
County: Hampden
Residential Tax Rate: $20.72
Commercial Tax Rate: $20.72
Median Household Income: $62,680
Family Household Income: $70,571
Type of Government: Open Town Meeting, Board of Selectmen
Largest Employers: Hasbro, Lenox Tools, East Longmeadow Skilled Nursing, Redstone, Plastipak
* Latest information available

No Place Like Home

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Features
Dakin Humane Society Strives to Save, Improve Animals’ Lives

Leslie Harris says Dakin strives to rehome animals

Leslie Harris says Dakin strives to rehome animals, and also keep them healthy and happy as they wait.

If a typical cage is like a small hotel room for cats, Biscuit lives in a suite.

That’s not to say it’s luxurious living; he’d really rather be free to wander a house, tended to by a loving family. But while living at Dakin Humane Society, at least he’s got a double cage, with his eating area separated from his litterbox by a small passageway.

It’s a small amenity, sure, said Leslie Harris, Dakin’s executive director. But would you want to eat in your bathroom?

“Do we just put poor Biscuit in a tiny cage and hope for the best, or do we think about how to keep Biscuit healthy? The goal is to get Biscuit home, but while he’s here, we want to keep him healthy and happy.

“Healthy is important,” she went on, “but happy is also important, because Biscuit has been through some trauma. Twelve years old, and one day he showed up here. He probably lived with the same person, a creature of habit. So, in order to keep Biscuit happy, we make sure he has space, that he’s not stressed because his toilet is right next to his food bowl — to preserve his sense of dignity and cleanliness.”

Those little touches make a difference in the animals’ quality of life while living at Dakin, Harris said, which is considered as important as finding them a better life outside the facility’s doors. “We always try to do things to make the animals’ experience here successful — and with, ultimately, a lifesaving outcome.”

After all, saving the lives of homeless, abandoned, and unwanted cats, dogs, and other creatures is the main mission at Dakin, which has increasingly accomplished that goal with a series of ambitious programs, from a spay-and-neuter clinic that brings in more than 10,000 animals annually to a safety-net program that helps economically stressed pet owners keep their furry loved ones.

“One of the things that makes Dakin interesting — from a business perspective, from an animal perspective, and from a nonprofit perspective — is that we really value innovation,” Harris said. “We’re not interested in the status quo; we don’t think that saves lives. The mission in this community is to save the lives of homeless animals and improve the lives of animals living with people.”

Paws for Effect

Since its inception more than 45 years ago, Dakin has become one of the region’s most recognized names in animal welfare, treating, sheltering, and fostering more than 20,000 animals each year — not just cats and dogs, but smaller animals as well.

“Last year, we took in about 50% more smaller animals than the year before — a record number of rats, rabbits, guinea pigs, gerbils, hamsters, mice, and birds,” Harris said. “We do not rehome large parrots or reptiles; we send those to a more capable rescue because they have such specialized needs.”

Many animals that arrive at Dakin are homeless or lost, with many dogs transferred from animal control when their owners can’t be located. But others are surrendered by their owners, for a number of reasons.

“The biggest reason why people surrender their own pets to us relates to poverty; that is true whether it’s the city of Springfield or the Upper Pioneer Valley, which we also serve,” Harris said; Dakin operates its headquarters in the former and an adoption center in Leverett.

Veterinarian Dr. Sherri Therrien

Veterinarian Dr. Sherri Therrien performs one of the more than 10,000 spay/neuter procedures conducted at Dakin every year.

“Poverty impacts a person’s housing choices,” she continued, noting that someone who has to move from a house to an apartment may not be allowed to keep a dog. In other cases, a beloved pet may be old and sick, and an owner facing economic stresses may not be able to properly treat them.

Many of these animals are rehomed, Harris said, but Dakin strives to keep them with their owners whenever possible through a safety-net program that might pay for an animal’s immediate medical care before sending him home, or setting a family up with free cat or dog food donated by pet-food stores and volunteers.

“If someone says to us, ‘look, I can’t feed my dog,’ we might say, ‘what if we were able to help you with your food?’” she explained. In another scenario, if an elderly pet owner breaks a hip and has to go to rehab, Dakin might foster their pet and send it home after the owner recovers. Harris said some 50 to 75 animals each year benefit from these options.

While it strives to rehome local animals, Dakin also participates in what’s known as the Dixie Dogs program, receiving dogs from overcrowded shelters in southern states who might otherwise be euthanized.

“There’s a misconception that the majority of the dogs we get come from other parts of the country, but that’s not true,” Harris said. “Most come in locally and are rehomed locally. We still probably take in around 300 dogs through the Dixie Dog program; we have regular transport partners in Texas, Kentucky, and New Mexico, and every couple weeks, they send a shipment of dogs to us.”

These dogs are pre-screened for temperament, and part of each adoption fee is sent back south to improve the lives of dogs in the source community. And the added volume at Dakin is actually a good thing, Harris said, as having more dogs in the building that are considered more ‘adoptable’ creates a buzz that attracts more visitors, giving even the less adoptable dogs — older dogs, for instance, or breeds with less-than-rosy reputations — a fighting chance at a new home.

Still, she told BusinessWest, finding new homes for displaced pets is only one way to stem the tide of unwanted animals. Another way is to reduce the number of animal births. That’s where Dakin’s spay-neuter clinic comes in.

“We provide a high volume of low-cost spay-neuter surgeries for cats and dogs within a 90-mile radius of Springfield,” Harris said. “We spay and neuter between 10,000 and 12,000 cats and dogs a year, and we just completed our 57,000th surgery since opening in 2008.”

That’s critical, she said, because for a shelter to operate as an open-admission facility with a minimum of euthanizations, it must reduce the volume of animals flooding in. The clinic has done just that.

“Not only do we need an effective adoption program, to get animals out the door, we have to stop them from coming in, and what’s the best way? Stop them from being born. That’s why we launched our spay and neuter clinic,” she explained. “A couple hundred surgeries a year will not make much impact.”

Several thousand, however, is a different story — and the admission statistics tell that story well. Kitten admissions have dropped 40% since 2009, and Harris believes that constantly promoting the spay and neuter clinic is bringing down the number of homeless cats in Greater Springfield. “What’s the smartest use of our resources? We’re spending them wisely; it’s cheaper to spay a cat than to shelter one.”

Community Effort

As a nonprofit, Dakin’s operating budget is covered in part by adoption and treatment fees, but mainly by donations from individuals and businesses who support its mission to care for and rehome animals.

The adoption fees run anywhere from $139 for an older cat to $350 for a kitten, and Harris said that money is used to provide needed care for other pets. “It costs us more than $500 per animal to put them through the adoption center. So the fees pay for some of the cost of care, and it’s made up with contributions from people.”

Then there are unique events like February’s PAWSCARS, a major fund-raiser that melded local filmmaking about animals with a red-carpet fashion show featuring notable area residents and their dogs — just another way Dakin is thinking outside the crate.

Still, the organization wouldn’t stay afloat without more than 1,000 volunteers who support the staff of 56 full- and part-time employees.

“Volunteers do nursing care for kittens, feed dogs, help with administrative tasks, sort the surgical equipment, do laundry, distribute pet food as part of the pet-food bank, and do data entry,” just to name a few opportunities to lend a hand, she told BusinessWest. Other volunteers assist with dog-training programs, many of them placed through an internship program at UMass.

“We get a new class of college students every semester, and the curriculum lays out what the intern does in the adoption center. Many of them expect to go into veterinary school, and it’s interesting to see one of the interns come back as a veterinarian.”

The work isn’t always fun — it can be messy and smelly and labor-intensive — but that doesn’t keep animal lovers from pitching in, Harris said. “So many people know about it and want to help. They tend to be the type of person who enjoys focusing on a mission and really wants to see it through.”

They also recognize the importance of innovation, of striving to save and improve more animal lives each year.

“I’ve been at Dakin since we served 300 animals a year, and our headquarters was a house,” she said. “We’ve grown because we’re innovative and open to change. I’ve worked with other animal organizations that said, ‘there’s nothing we can do to solve this cat problem.’ I call BS on that; it’s not true. It just means you’re not thinking hard enough or trying hard enough; you’re stuck in old ways of thinking. It is possible to solve the problem, and I think what we’ve achieved is complete evidence of that.”

After all, Harris said, Dakin is not just helping animals; it’s helping families.

“If you want to help animals, you have to help people,” she told BusinessWest. “The animals don’t come here of their own accord. People knock on the door and say, “I lost my house,’ and if you don’t have an open heart for these people and what their challenges are, you can’t help their animal. But if you’re resourceful and ask, ‘if I were in their shoes, how would I want to solve this problem?’ you can be that problem solver. And we have a staff that’s amazing at that.”

That’s good news for Biscuit — and thousands of other critters looking for a home.

Joseph Bednar can be reached at [email protected]

Community Spotlight: Westfield

By
Community Spotlight Features
In Westfield, Redevelopment Plan Becoming Reality

Mayor Daniel Knapik says Westfield is rife with activity that is leading to dramatic changes in the landscape, as projects that were years in the making come to fruition.

New buildings are under construction, while older ones that sat empty for as long as a decade are being transformed and repurposed. Phase I of the Columbia Greenway Rail Trail is underway, work is being done in the so-called Gaslight District, and other initiatives are becoming a reality.

“Fourteen years ago, Mayor [Richard] Sullivan showed me his plan for the city, and I saw what the future could be,” said Knapik, adding that this action plan and its prospects for becoming reality led him to seek election to the City Council, where he held a seat from 2001 to 2009 before being elected to the corner office. “It’s astonishing what has happened since then. I supported the mayor’s vision that he created with City Engineer Mark Cressotti, and all of the projects have finally come over the finish line.”

Much of the work has taken place in the last year or two, and projects are in varying stages of development. Change is occurring downtown as well as on Route 20, where a new 99 Restaurant will be built on property that has stood vacant since a Pontiac/Oldsmobile dealership closed down more than 15 years ago.

“We have been talking with officials from 99 for six years to help them find the right spot; they were very selective and looked at other parcels, but finally settled on this one,” Knapik said, adding that ground was broken two weeks ago for the eatery, which is expected to open before Thanksgiving.

In addition, the end units of the former Kmart plaza will finally have tenants. Habitat for Humanity’s ReStore opened in late April in the former Grossman’s Bargain Outlet building on East Main Street, and the space at the other end will soon be occupied by a business that will provide medical-related services. “The site they will move into had been vacant for six years,” Knapik noted.

Daniel Knapik, pictured with Kate Phelon

Daniel Knapik, pictured with Kate Phelon, says the Great River Bridge project, finally completed in 2012 after 30 years in the planning stage, benefits residents and businesses alike.

Another parcel, located at the gateway to Westfield on Route 20, is also flourishing. Nabil Hannoush, serial entrepreneur and vice president of the Hannoush Jewelers chain, purchased the former Balise Ford dealership on 99 Springfield St. and turned the 11-acre property into a center that houses Expert Fitness and other health-related businesses, along with the new Short Stop Bar and Grill and Batter’s Box. He and his wife want to build three additional standalone structures on the side of the building that would likely house a bank as well as retail and commercial office space.

“We are working with them and the Mass. Department of Transportation to enhance the traffic entrance,” said Knapik. “The hope is that the city can secure a grant to widen the road and add a traffic light and dedicated turn lane; we would like to begin work next fall.”

In addition, funding for the entire rail trail has been secured (more about that later), and nearby parks and other venues are planned or under construction.

Progress has also been made on a medical office built on 57 Union St. by Noble Hospital during the recession. Although New England Dermatology rented 20% of the space after it was completed, finding occupants for the remainder became problematic due to the economy. “But that changed in the past year. Noble brought in physicians who have offices there, and it has been nicely filled,” Knapik said.

Overall, the completed and in-progress projects have created a great deal of momentum in the city, said Kate Phelon, executive director of the Greater Westfield Chamber of Commerce, adding that the positive vibes will undoubtedly spur additional growth.

“Since I’ve been in my position, it is very exciting to see these various projects completed, new businesses opening or expanding, and continued growth in our city,” she said. “This has a direct impact on jobs and population growth.”

Complex Components

The vision Knapik embraced and has worked toward with Cressotti’s help included a number of components: the Great River Bridge project, which was on the drawing board when the mayor took office; the rail trail; badly needed infrastructure improvements on Main and Broad streets; and development of the Gaslight District and an area of underutilized property on Elm Street that fronts it.

The $100 million Great River Bridge project was completed in 2012 after 30 years in the planning stage. The original bridge that crosses the Westfield River was rehabilitated, and a twin span was built directly opposite it. The construction required relocating three parks as well as overcoming other obstacles, but today the old bridge serves southbound traffic while the new one accommodates northbound vehicles.

Major improvements have also taken place at Westfield Barnes Regional Airport, including a $13.5 million runway reconstruction and two new hangars to be built in the future. In addition, a $2 million redesign and reconstruction of Airport Industrial Road is complete, providing better access to companies operating just outside Barnes as well as those who want to locate in the city’s new, 80-acre Air Industrial Park.

Knapik said there has been a tremendous amount of interest in industrial parcels on the north side of the city over the past six to eight months.

“It’s a sign that the economy is turning around, and we are anticipating an announcement of a big warehouse and distribution facility this month on more than 500,000 square feet of vacant land by the airport,” said the mayor. “Plus, a manufacturer is looking at a smaller parcel owned by the city. If we capture both of these, it will lead to about 400 new jobs.”

City officials also secured the $18.5 million needed to complete the rail trail. They are working on Phase I, which covers two miles from the Southwick line to the Stop & Shop in the city’s downtown. During Phase II next summer, the old railroad bridge that crosses the Westfield River will receive new decking and a new surface; work on the last leg of the project will take place in 2017 when the middle section will be completed. It’s no easy feat because the elevated, 3.5-mile trail crosses nine bridges.

“But the economic impact will be significant,” said Phelon, noting that it will connect with a larger rail trail that covers 65 miles. “We expect tens of thousands of travelers to use it, including cyclists on multi-day trips and organizations that plan bicycling vacations. Retail stores and eateries will benefit, and the area will become a perfect spot for bed-and-breakfast operations.” She added that the chamber and Friends of the Columbia Green Railway hope to partner with local businesses to help them become more bicycle-friendly and draw rail-trail users into their stores.

Travelers and locals will also be able to enjoy amenities on the Westfield River Esplanade, which runs along the levee between the Columbia Greenway Rail Trail and Great River Bridge.

“We plan to construct overlooks with natural-gas fireplaces on it and bocce courts where families can gather; we broke ground six weeks ago and expect to be done by midsummer. The most livable cities encourage people to get out of their automobiles,” said the mayor, who was recently feted with the 2015 Bicycle Advocate of the Year Award by the Alliance for Biking and Walking.

Another major capital project is underway in the Gaslight District. The streetscapes are being rebuilt, and utilities are being modernized and moved underground.

“The design was completed last year,” Knapik said, adding that the $6.5 million cost is being paid for with local money. “The city engineer wants to make this a neighborhood of distinction, and the six streets in the district will be outfitted with gaslights to create an old-fashioned, colonial-style feeling. It’s appropriate because the gas and electric companies got their start there in the 1870s.”

There will also be a new park in the district that will feature a fountain from the Thayer House that was demolished decades ago. “It was saved and unearthed by the Parks Department and hasn’t been used for about 80 years,” Knapik said.

Once improvements are complete in the Gaslight District, the city will finally be able to redevelop Elm Street. “The infrastructure was 100 years old and failing, so we couldn’t put anything there, but three buildings have been knocked down, and two more will be demolished,” Knapik said. “We have remediated the brownfield sites, and when the project is finished in the fall of 2016, the city will have four acres of unpolluted land ready for redevelopment.”

Efforts to modernize Westfield include green initiatives that were finished last year. “Sustainability is important, and adopting single-stream recycling has reduced the amount of tonnage that leaves the city by 30%. We also spent $30 million to make city buildings energy-efficient, which included new rooftops, boilers, and windows,” Knapik said, noting that the heating systems in 14 structures were converted from steam to hot water, which lowered the consumption of gas.

Another green project proposed six years ago came to fruition in January when a ribbon-cutting ceremony was held for a 2-megawatt solar farm on the former Twiss Street landfill, which closed about 20 years ago and was a topic of discussion for many years.

“Citizens Energy is leasing the property from the city and will care for the 10 acres in lieu of a tax payment,” the mayor explained, adding it guaranteed the city’s price for electricity for the next 20 years, and cost savings of about $100,000 a year are expected.

Lengthy Process

When Knapik first learned about Sullivan’s vision for the city, he had no idea how long it would take to accomplish. The work on Main and Broad streets has been completed thanks to stimulus funds, which reaped the city $14 million for shovel-ready projects.

“We’ve spent $130 million on utilities, bridges, roads, and street lamps in the last decade, and all of the projects we envisioned have come to a collision point,” Knapik said. “We have had a lot of support from the governor, and good things have come to Westfield.”

Phelon agreed. “With all that has happened and will continue to happen in our great city,” she said, “the chamber is even more excited about connecting its business members and leaders to further promote economic development and entrepreneurism, and to keep the momentum moving forward that makes Westfield a great place to work, live, and play.”

Westfield at a glance

Year Incorporated: 1669
(town); 1920 (city)
Population: 41,094 (2010)

Area: 47.3 square miles

County: Hampden

Residential Tax Rate: $18.54

Commercial Tax Rate: $34.69
Median Household Income: $55,327 (2010)

Family Household Income: $57,018 (2010)

Type of government: Mayor, City Council
Largest Employers: Noble Hospital; Westfield State University; Airtherm; Berkshire Industries Inc.
* Latest information available

State of Urgency

By
Features
AIM Action Plan Strives to Make the Commonwealth More Competitive

AIM coverChris Geehern says he didn’t contrive the phrase (or this particular application of it) — attribution belongs to a Baystate business owner requesting anonymity — but he certainly puts it to work liberally as he talks about the Commonwealth’s innumerable business regulations and the manner in which they are enforced.

“He called it the ‘bad-waiter syndrome,’” Geehern, executive vice president for the Associated Industries of Massachusetts (AIM), said of the individual in question. “He said doing business in Massachusetts is like going to a restaurant where you really like the food, the atmosphere is terrific, and the dessert and drinks are just what you wanted. But the whole experience gets ruined because the waiter is rude and doesn’t really care about whether you like the place or not.

“What we’ve heard repeatedly from employers is that it’s less about the regulations themselves,” he continued, “and much more about the way they are interpreted and enforced — which drives companies crazy.”

Bringing attention to this bad-waiter syndrome and actually doing something about it are two of the many stated goals in a document titled “Blueprint for the Next Century,” the drafting of which is one of several ways — and perhaps the most meaningful — AIM has chosen to mark its 100th anniversary this year.

Composed following extensive polling of the organization’s 4,500-odd members, the blueprint identifies four major public-policy issues, or areas of concern, that members say must be addressed if the state is to remain competitive in an increasingly global economy.

In addition to the need to establish what the report’s authors call a “world-class state regulatory system … that meets the highest standards of efficiency, predictability, transparency, and responsiveness,” these are:

• “Workforce,” meaning a system for educating and training workers and providing them with the skills necessary for companies to succeed;
• “A uniformly strong business climate.” Roughly translated, this involves taking the stunning success enjoyed by the Greater Boston region and expanding it to the rest of the Commonwealth, while also providing opportunity to all business sectors; and
• “Health insurance and energy costs” and the need to lower them to make the state more competitive.

AIM President and CEO Rick Lord, seen here with Gov. Charlie Baker

AIM President and CEO Rick Lord, seen here with Gov. Charlie Baker, says workforce issues are by far the number-one concern among the state’s employers.

None of these areas of concern would in any way be considered news, especially to anyone doing business in Western Mass., said AIM President Rick Lord, and collectively they will defy quick or easy resolution.

“None of these have easy solutions,” he noted. “But we hope to have a second release of this blueprint at the end of this year that will include recommendations that will hopefully move us forward.”

To illustrate these concerns, or challenges, and the threats they pose to the future of the state’s economy, AIM presents the example of a Western Mass. company, Northampton-based MachineMetrics.

Led by Eric Fogg, Bill Bither, and Jacob Lauzier, the venture has created a cloud software solution that improves the productivity of manufacturing facilities by collecting, analyzing, and visualizing data from machines, parts, and people. In many ways, its future is dependent on the health of the state’s manufacturing sector, its ability to attract and retain qualified help, and its proficiency with navigating the state’s costly and highly regulated business environment.

“MachineMetrics is the kind of company that may ultimately determine the ability of Masachusetts to build upon an economy that in many ways remains a paradox — an international center of technology, innovation, medical research, financial services, and higher learning near Greater Boston, but a more traditional, amorphous economy just outside of Route 128,” write the report’s authors. “Fogg, Bither, Lauzier, and innovators like them hold the unique promise of joining the ‘eds and meds’ economy of the 617 area code with existing industries struggling to create jobs for residents in the rest of the state.

“It is a promise that will be played out against a vibrant and unforgiving global economy in which investment, resources, jobs, people, and capital flow at blinding speed to the most competitive environments,” they go on. “States, regions, and nations no longer have the luxury of taking their job bases for granted — failure to nurture the business climate not only impedes the growth of existing companies, but also leads to a silent and corrosive flow of job expansions to other locations that provide employers with the best opportunities for success.”

For this issue, BusinessWest takes an indepth look at “Blueprint for the Next Century” and the challenges and opportunities it identifies for the Bay State moving forward.

History Lessons

Lord said AIM traces its roots to 1915, perhaps the apex of the state’s manufacturing sector, when 27 manufacturers came together in the belief that their interests would be better served by a statewide organization charged with advocating on their behalf.

“They felt they needed an organization that would be their voice in the State House,” said Lord, adding that several of those original 27 members were from the western part of the state, and four — Crane Paper in Dalton, Package Machinery in Holyoke, Hampden Papers in Holyoke, and GE, which had several locations, including a huge complex in Pittsfield — are still paying dues a century later.

AIM remained an association of manufacturers until 1989, when membership was opened to all business sectors and the entity became an employers’ association. Today, there are more than 4,500 members, with roughly 30% of them in the manufacturing sector.

AIM will mark its first 100 years of service in a number of ways. The celebration began, unofficially, with the organization’s annual meeting in May, and will climax with a huge gala slated for Nov. 16 (close to the actual anniversary date) at the Boston Convention Center.

Between now and then, there were will be ceremonies in different regions of the state, staged to mark the centennial but also to honor companies and individuals that have made major contributions to the state’s business community and the cities and towns in which they are based.

One such ceremony will take place in Springfield, in the Lyman & Merrie Wood Museum of Springfield History, on June 15. The honorees will be MassMutual, Yankee Candle founder and Kringle Candle co-founder Michael Kittredge, and the Hampden County Sheriff’s Department’s vocational training program.

Meanwhile, in Dalton, on June 11, AIM honored Onyx Specialty Papers, Berkshire Health Systems, and SABIC Innovative Plastics.

But the most significant aspect of the centennial celebration is “Blueprint for the Next Century,” which attempts to not only identify the challenges facing business owners of all sizes, but also take on the much more difficult task of pinpointing potential solutions.

And this brings Lord and Geehern back to MachineMetrics, which, as they said, embodies both the promise of the future and the considerable obstacles to achieving that promise.

To put things in perspective, the report’s authors presented MachineMetrics’ case and asked a number of poignant questions that apply to most ventures doing business in the Bay State or looking to do so:

• Will the advanced-manufacturing companies to which they want to sell their idea survive in the relentlessly high-cost, high-regulation environment in Massachusetts?
• Will MachineMetrics find the skilled, educated, and motivated people it needs to grow and to develop new iterations of the company’s software?
• Will young companies located in Western Mass. and other areas outside the Cambridge/Boston innovation beltway develop the critical mass needed to extend opportunity throughout the state?
• Will the MachineMetrics platform make manufacturers so efficient that they will be able to increase business without creating new jobs?
• Will government regulators encourage the growth of companies like MachineMetrics, or will they set up bureaucratic impediments like the one that recently convinced a neighboring software company in Amherst to move to Texas?
• Finally, will the government research money that built Massachusetts into a world-class center of higher education, medical science, biotechnology, and defense technology continue to flow or slow to a trickle?

How the state — meaning its business leaders and especially its elected leaders — answer these and other questions will go a long way to determining how the next century, or at least the next few decades, will unfold, Lord said.

Help Wanted

There is probably no issue where the answers are more important than the broad issue of workforce, he went on, adding that virtually every business sector, and every individual business, will be challenged in the years to come with the task of attracting and retaining individuals with the skills needed for that business to succeed.

“This was by far the number-one concern among Massachusetts employers,” said Lord. “We heard it in all geographic areas of the state, from Boston to Western Mass., and we heard it in all industries — particularly, and quite loudly, in manufacturing.

“That’s because the age of the workforce is high — 50% of the sector’s workforce will retire in the next 10 years,” he went on. “So they’re facing a crisis in filling jobs that will become available.”

But the reality is that the word ‘crisis’ is not restricted to that industry, he told BusinessWest, adding that solutions to it lie mostly in the ability of the business community and the state’s education system — meaning preschool to college — to work together to ensure that businesses will have qualified workers.

Specific recommendations include, among other things, taking better advantage of the opportunities provided by the Workforce Innovation and Opportunity Act of 2014; elevating the role of vocational education; renewed emphasis on the fundamentals, such as math, science, and communications skills; and expanding performance-based funding for the state’s community colleges and public four-year institutions.

Beyond workforce issues, though, there are other issues challenging business sectors and individual ventures, said Lord and Geehern, adding that one of the most critical is the matter of creating a uniformly competitive structure across all industries, geographic regions, and populations.

Elaborating, Lord said that what the state has done in recent years amounts to picking winners and losers. And this phrase applies to both geography and business sectors.

“We’ve heard from a lot of companies that they believe we need to promote economic opportunity uniformly across the state,” he explained. “The Greater Boston area survived the recent economic downturn pretty well, but other areas of the state suffered more significantly, so economic opportunity is unevenly spread throughout Massachusetts. In addition, over time, the state has adopted policies or incentives that favor certain industries over others. The sense is that economic opportunity ought to be more evenly distributed.”

Geehern agreed, noting that state government, in general, has a tendency to chase whatever the ‘sexy’ industry might be at the moment. In the ’80s, it was personal computers, and at the start of this century, it was Internet-based ventures, he went on, adding that, in recent years, it’s been biotech, a focus punctuated by former Gov. Deval Patrick’s commitment of $1 billion to that sector, an expenditure that primarily benefits the eastern part of the state.

“What we’re trying to say with this [blueprint] is that you can’t just chase after the cool industry, whatever that might be at the moment,” he continued. “You have to think about what industries match up with the skills that are available in Massachusetts and do your best to encourage business growth throughout — meaning throughout all industries and throughout all regions.”

As with the workforce initiative, however, stating the problem and finding solutions to it are two completely different things, they acknowledged.

The blueprint recommends a number of steps, but especially increased focus on the state’s so-called gateway cities, older manufacturing centers, including several in Western Mass., such as Springfield, Holyoke, Pittsfield, and Westfield.

“A lot of this inequity exists in our older, urban areas,” said Lord. “There has been some focus on the gateway cities, but I think there’s more that can be done there; I think the Baker administration will try to do some creative things.”

By Any Measure

Another major issue for the state moving forward is both the number of regulations on the books and the manner in which they are enforced, said Geehern, who drew upon the example of that aforementioned software company in Amherst — the one compelled to relocate to Texas — to get his point across.

“During their first few years in operation, companies usually lose money, and this one was no exception,” he explained. “And the Department of Revenue required them to file their return electronically. That’s fine, but the DOR would not let this company use any of the typical, commercially available online platforms to submit those returns.

“Instead, they had to go out and buy this specialized piece of software that I believe cost about $2,500,” he went on. “Things like this prompted this company — which was a medical software company run by an M.D., so it’s exactly the kind of company that’s in the wheelhouse of Western Mass. — to move to Texas. And when the founder sells in five or 10 years for lots and lots of money, all those capital gains are going to Texas, rather than Massachusetts, not to mention all those jobs.”

Such stories are hardly isolated incidents, said Geehern and Lord, adding that they are a key element in the prevalence of that bad-waiter syndrome described earlier.

“There’s a sense that Massachusetts is just a tough place to do business because of the multitude of government regulations that impact companies in all sorts of ways,” said Lord, adding that, by AIM’s count, there are roughly 2,200 of these regulations, and they are often not reviewed in anything approaching a systematic fashion.

Which is why business leaders were encouraged by the Baker administration’s imposition of a 90-day moratorium on new regulations (since extended) as well as a comprehensive review of all existing regulations announced in April.

“All agencies are in the process of looking at the regulations that their agency has promulgated, and they have to justify whether they should be kept, amended, or repealed,” said Lord. “And we’re soliciting input from our members to help in this process.”

The desired result, he said, are regulations and enforcement policies that protect society, but don’t punish businesses.

But while companies must cope with a highly regulated environment, they must also deal with high costs, especially when it comes to energy and health insurance, said Lord, adding that, as with the other public-policy initiatives, these do not constitute a recent phenomenon.

But they are becoming more of a factor, he said, adding that the Commonwealth now boasts (if that’s the right term) the second-highest per-capita healthcare costs in the nation (15% higher than the national average) and the third-highest electric rates.

“And these put us at a competitive disadvantage to lower-cost places, both in the United States and around the world,” said Lord, adding that relief from these costs will not come easily.

Steps toward progress outlined in the report include, for healthcare, everything from maintaining the current definition of ‘full-time employee’ — the state’s benchmark is 35 hours, while federal reforms put the number at 30 — to repealing the medical-device tax under federal health reform.

As for energy costs, the report recommends steps such as new pipelines to transport natural gas into the Commonwealth and reorganization of the Mass. Department of Public Utilities.

Getting a Tip

Ridding Massachusetts of the ‘bad-waiter syndrome’ is not an assignment for the faint of heart. Such perceptions about the Commonwealth and its general attitude toward business have existed for most all of the time AIM has been in existence.

Real progress is the goal, and AIM is striving to achieve some by not only stating the problems, but eventually providing a road map for finding improvement.

And if that destination can be reached, then this century-old organization will really have something to celebrate.

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

And Then, There Were Five

By
Features
Continued Excellence Award Finalists Are Announced

40under40continuousExcellenceAwardOnlineThe judges have cast their ballots, and their scores have determined the five finalists for BusinessWest’s first Continued Excellence Award, or CEA.

And, as with the 40 Under Forty competition that inspired this new recognition program, the defining element for the list of finalists is diversity.

Indeed, those with the highest scores among nearly 40 nominees for the CEA include a serial entrepreneur, an attorney, one of the forces behind the region’s hugely successful Valley Gives program, the current president of one of the state’s oldest family-run businesses, and an administrator in the region’s large and prestigious higher-education sector.

“We created the Continued Excellence Award to recognize 40 Under Forty honorees who have done anything but rest on their laurels,” said BusinessWest Associate Publisher Kate Campiti. “We wanted to single out for recognition those who have built upon their strong records of service in business, within the community, and as regional leaders. And these five finalists have certainly done that.”

The winner of the inaugural CEA will be announced at this year’s 40 Under Forty Gala, slated for June 18 at the Log Cabin Banquet & Meeting House.

The finalists, as determined by scores submitted by three judges — Carol Campbell, president of Chicopee Industrial Contractors; Eric Gouvin, dean of the Western New England School of Law; and Kirk Smith, former director of the YMCA of Greater Springfield — are:


Delcie Bean IV

Delcie Bean IV

Delcie Bean IV

A member of the 40 Under Forty Class of 2008 at age 21, Bean is the founder of Valley Computer Works, now known as Paragus Strategic IT. Since that time, he’s gone on to be named BusinessWest’s Top Entrepreneur for 2014, seen Paragus grow 450% and earn status as one of Inc. magazine’s fastest-growing companies on several occasions, and recently have his company earn the Top Employer of Choice Award from the Employers Assoc. of the NorthEast. He’s also started a second business venture, Waterdog Technologies, a technology-distribution company.

Meanwhile, within the community, Bean started the nonprofit Tech Foundry, an organization that provides training and workplace skills to high-school students. He’s also been active with Valley Venture Mentors, River Valley Investors, and DevelopSpringfield; is a board member for Up Academy Springfield; and serves as a board member for the Mass. Department of Elementary & Secondary Education’s Digital Literacy and Computer Science Standards Panel.

Kamari Collins

Kamari Collins

Kamari Collins

When nominated for the 40 Under Forty Class of 2009, Collins was an academic counselor at Springfield Technical Community College and an individual devoted to helping young people get on the right path — and stay on it. Over the ensuing years, he’s built upon his professional résumé and become involved in many different programs aimed at providing guidance and mentorship.

Collins was promoted to director of Academic Advising at STCC in 2012, and in 2014, he was named dean of Academic Advising and Student Success, and currently leads a staff of more than 25 professionals.

Within the community, he lends his time, energy, and imagination to several organizations, including the Children’s Study Home, the Urban League of Springfield Inc., the Community Foundation Education Committee, the Pioneer Valley AHEC/Reach Advisory Board, and the Lower Pioneer Valley Career and Technical Education Center’s Building and Property Maintenance Advisory Board.


Jeff Fialky

Jeff Fialky


Jeff Fialky

Another member of the 40 Under Forty Class of 2008, Fialky has added a number of lines to the résumé that helped him earn that distinction.

For starters, in 2012, he was named a partner at the Springfield-based law firm Bacon Wilson, which he joined as an associate, and is active in leadership capacities with the firm. But he has also become a leader within the Greater Springfield business community.

Former president of the Young Professional Society of Greater Spring-field, Fialky currently serves as chair of the Springfield Chamber of Commerce, and is also on the board of trustees of the Springfield Museums. In his capacity with the chamber, he has spent the past several years working with city officials and groups such as Valley Venture Mentors to foster economic development in the city and advance a 10-year economic strategic plan for Springfield.

Cinda Jones

Cinda Jones

Cinda Jones

When she placed among the highest scorers in BusinessWest’s inaugural 40 Under Forty competition in 2007, Cinda Jones was noted mostly as the ninth-generation president of Cowls Lumber Co. (one of the oldest family-owned businesses in the nation) and as president of the Amherst Area Chamber of Commerce. Over the past eight years, she has built upon that résumé in many ways.

Indeed, she has expanded the Cowls business in several directions, but primarily through an initiative to convert the company’s sawmill into a multi-purpose arts and entertainment facility called the Mill District. One multi-use building, the Trolley Barn, hosts the Lift Salon and Bread & Butter Café, along with several residential units, and additional development is planned on the sprawling site.

While entrepreneurial, Jones is also a staunch protector of the environment. In 2011, for example, she brokered and closed the state’s largest-ever private conservation project, the Paul C. Jones Working Forest, a 3,486-acre conservation restriction in Leverett and Shutesbury named for her recently deceased father.

Kristin Leutz

Kristin Leutz

Kristin Leutz

A member of the 40 Under Forty Class of 2010, Leutz has added to an impressive list of business accomplishments and initiatives within the community over the past five years.

As vice president of Philanthropic Services for the Community Foundation, she played a leading role in efforts to bring Valley Gives from a concept on a drawing board to a hugely successful three-year pilot program that raised more than $5 million for hundreds of nonprofits across Western Mass.

Within the community, meanwhile, Leutz, who has started several businesses, has become a mentor to other entrepreneurs, donating time and energy to Valley Venture Mentors and contributing to the launch of its Accelerator program.

She has also been involved with a number of nonprofit groups, including the Women’s Fund of Western Mass., and often meets with nonprofit leaders, volunteers, and staff to coach them, especially with regard to fund-raising and organizational development.

Community Spotlight: South Hadley

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Community Spotlight Features
South Hadley Falls Rebound Gathers Momentum

Michael Sullivan says the newly opened Texon Mill Park in

Michael Sullivan says the newly opened Texon Mill Park in South Hadley Falls features a walking trail with beautiful views.

The village known as South Hadley Falls was the center of life and commerce in the town of South Hadley for more than a century. But over the past 60 years, major employers downsized or moved, and as buildings and lots were left vacant and underutilized, the village slowly lost its vitality.

But ‘the Falls’ is undergoing a revitalization, one that is a central feature of the community’s master plan. And efforts by town officials to realize a vision outlined in a report titled “The Rise of the Falls” are coming to fruition.

“When we first started down this path, we wanted to draw attention to South Hadley and the Falls,” said Town Administrator Michael Sullivan. “We are at the point where we are seeing some results, but talks with developers have pointed out other needs and opportunities, so the plan is evolving and changing.”

Indeed, officials are taking a holistic approach that includes a variety of measures. For example, several weeks ago, the South Hadley Redevelopment Authority, established last year, unveiled concepts aimed at changing the traffic pattern at the intersection of Main and Bridge streets and Main and Lamb streets. The SHRA would like to see roundabouts created, which Sullivan says are often referred to as “traffic-calming devices,” because they slow down traffic and improve pedestrian safety, while allowing vehicles to flow in an orderly manner.

In addition, the Redevelopment Authority is evaluating the use of several properties that are highly visible to drivers who enter South Hadley Falls from Holyoke via the Vietnam Veterans Memorial Bridge.

“Two are vacant, and two are occupied by businesses, but that may not be their highest and best use; there might be suitable and available space for them to move into elsewhere in South Hadley,” Sullivan said, adding that this would have to be negotiated, but one site contains an auto-repair shop that is an eyesore due to distressed vehicles sitting outside.

“We want to use these properties to make a statement. First impressions count, and they are on adjoining lots that encompass 7.3 acres,” the town administrator told BusinessWest, as he talked about the importance of how people view the Falls.

Another part of the redevelopment plan that plays into the way the area is viewed is abating vacant and blighted buildings, and combined efforts by the Planning Board, selectmen, and Redevelopment Authority to eliminate the problem have yielded some success.

Sullivan said the town was successful in its bid to get Mohawk Paper to open a new, 120,000-square-foot envelope manufacturing and distribution facility in the Falls in the former James River Graphics building, which had been vacant for more than 10 years. South Hadley competed against Chicopee for the business, but Mohawk chose the Falls and invested $2.5 million to retrofit the building. “They opened May 15, added 35 jobs, and told us they plan to add another 35 next year,” he said.

In addition, Presstek consolidated the manufacturing side of its New York and New Hampshire plants and expanded its business in South Hadley via a $2 million upgrade of machinery and improvements. “They also added 25 employees,” Sullivan said.

Expanding Horizons

These investments, coupled with the growth of other businesses, led town officials to realize they need more housing and transportation options if they expect to attract new residents to South Hadley Falls.

“We need to redouble our efforts to provide workforce housing,” Sullivan said, explaining that the hope is that new hires in South Hadley or the environs will want to move to the village.

Progress in that arena is already taking place. Via the tax-title process, the town took ownership of a home on 8 Graves St. that was in deplorable condition, and is hoping to auction it off at the end of the month.

South Hadley officials also worked with the Attorney General’s office to get the owner of an abandoned home on 10 Canal St. to sell it. They were successful, and it was purchased, renovated, then resold to a family that is now living there.

“We’re using a variety of tools to try to improve housing and are really positioning South Hadley for the new millennium,” Sullivan said.

The town’s efforts have been aided by developer Nicholay Dipon, who plans to construct three new buildings that will contain 12 condominiums on an empty lot owned by the town situated across the street from the new, $7.7 million South Hadley Public library on 2 Canal St., which opened in August.

The selectmen have also approved Dipon’s plans to convert the decommissioned library building on 27 Bardwell St. into six market-rate apartments, and Sullivan said all of these units will be steps away from the newly opened, $12 million Texon Mill Park, which features a 3.4-mile looped walking trail with breathtaking views of the Connecticut River and the Holyoke Electric Dam.

In addition, South Hadley applied for a 40R designation from the state, which would allow the town to substantially increase its supply of housing and decrease its cost by expanding zoning for dense housing. Sullivan said officials expect to find out if their bid was successful in the next few months, adding that, if South Hadley receives the designation, it will give the town access to grants and low-interest loans to meet the goal.

“But we’re trying to give thoughtful consideration as to where we would put any new housing,” he told BusinessWest, explaining that the town recently received a $15,000 Planning Assistance Toward Housing Grant, which will be matched by $21,000 from town coffers to determine how to improve the available housing stock and increase density while keeping the Falls safe from crime.

Access to recreation is important to young professionals, and the town appropriated $30,000 to have the Pioneer Valley Planning Commission determine the best way to establish a pedestrian/bicycle path that would connect the Village Commons to the Falls.

Sullivan said the path is necessary because the housing market has changed dramatically over the last decade, and graduate students and young professionals are looking to rent apartments of 900 square feet or less in walkable neighborhoods where they can recreate as well as live and work.

“They can climb the Mount Holyoke Range at one end of town and canoe or kayak on the river at the other end,” he said. “But young people today don’t want to put a bike rack on their car. They are very active and will want a bike path, so we’re trying to find a way to tie in the amenities we have and offer diverse recreational opportunities, which include things such as golf.”

Public transportation is another critical component that appeals to young professionals, and the new Holyoke rail platform slated to open in September is within a mile of the Falls.

Although residents will be able to bike or walk to the train when service begins, South Hadley officials realized they needed to offer alternate ways to get there. To that end, they worked closely with Pioneer Valley Transportation Authority and created a ‘Tiger Trolley,’ which will allow residents to use the bus to get to the high-speed train when service begins without having to use a vehicle, and travel to Big Y, the Village Commons, restaurants, and other attractions in town.

The trolley began operating in February and runs from the Mueller Bridge in Holyoke into the Falls, before looping through South Hadley to the Village Commons. In addition to regularly scheduled stops, there is a transit-access-point, or TAP, program, which allows people to get picked up at any one of eight additional stops if they call a half-hour in advance or use a smartphone app to schedule a stop. Five of the pickup points are in South Hadley, and three are in the Falls, and Sullivan noted that, once the high-speed rail service starts, it could eliminate the need for residents of the Falls to own a vehicle.

“The Tiger Trolley transportation system is the first of its kind in the state, and we plan to increase the number of stops as demand increases,” he said, explaining that people who are on the bus can ask the driver to drop them off at any of the access points.

Work in Progress

Town officials are doing all they can to make South Hadley Falls into a walkable, vibrant neighborhood, and will continue to expand their plan to realize that goal.

“We want to build on our strengths as we head into the future,” Sullivan said, “and although we are positioned well as a cradle-to-grave community, there is still room for improvement.”

South Hadley at a glance

Year Incorporated: 1775
Population: 17,961

Area: 18.4 square miles

County: Hampden

Residential Tax Rate: $19.38 to $20.26

Commercial Tax Rate: $19.38 to $20.26

Median Household Income: $46,678 (2010)

Family Household Income: $58,693 (2010)

Type of government: Town Meeting; Board of Selectmen
Largest Employers: Mount Holyoke College; Exopack Advanced Coatings; Big Y World Class Markets; Pioneer Valley Performing Arts School
* Latest information available

Community Spotlight: Palmer

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Community Spotlight Features
Three Rivers Looks to Get on the Right TRACK

Dave Golden was proudly showing off artwork created by Palmer public-school students in a room in the North Brookfield Savings Bank in Three Rivers.

The exhibit has been on display only several weeks, but it has already sparked interest, and other artists have approached Golden, the branch manager, to ask if they could exhibit their own work there. He says the art show is part of a collaborative effort to transform Three Rivers into a thriving center for the arts.

“I’ve partnered with organizations that are working together to bring arts to the village; we want to beautify Main Street and fill empty commercial spaces,” Golden said, adding that he is talking with a property owner about having a mural painted on a wall across the street from the bank.

Members of On the Right TRACK

Members of On the Right TRACK say the popularity of the Palmer Historical Cultural Center indicates that a creative-arts economy could help revitalize Three Rivers.

There are myriad examples of this movement and the momentum it is creating, including Palmer Historical and Cultural Center Inc., or PHCC, which stages performances in Harmony Hall that include concerts by international and national musicians; plays by local theater groups; lectures; and a variety of workshops.

Collectively, they show the potential of the creative arts as a revitalization tool. The PHCC, for example, is just a few steps from the bank and a number of vacant storefronts that could be made available to artists on the half-mile stretch of Main Street.

But a lot more will be needed to realize the vision, and the timing is critical.

“Main Street has fallen victim to the economic downturn, and modern shopping habits have made it difficult for small businesses in the village to survive,” said Alice Davey, director of Palmer’s Community Development Department. “We realize that if action is not taken immediately to reverse this trend, the commercial area of Three Rivers will be lost forever.”

Town Manager Charlie Blanchard concurs. “Three Rivers was once a thriving community, but that has changed over the years,” he said, explaining that the village came into existence when manufacturing plants were built on the riverbanks in the 1800s and early 1900s. 

These facilities led to the establishment of a bustling economy, and Main Street businesses cropped up and flourished around the factories until they began to downsize and eventually close. They included the Otis Factory building that was built in 1872 and operated until 1936, and the massive Tambrands plant that was built in 1872 and closed in 1997.

“But until that time, hundreds of employees went to local restaurants for lunch and shopped at the hardware store, grocery store, furniture store, and clothing store,” said Davey. “They patronized the local bank and had their hair done at the local barbershop or hairdresser.”

That ended when Tambrands left the area. “The customer base shrank, and slowly, one by one, businesses closed,” Davey told BusinessWest, adding that people began frequenting big-box stores and using the Internet to shop.

Today, the former Tambrands factory has become the Palmer Technology Center, and although it houses about 20 small businesses, Davey said they don’t come close to employing the hundreds of residents who once worked in the building.

In addition, 41% of the existing storefronts on Main Street are vacant, and the businesses that remain are struggling. “Some Main Street building owners are finding it impossible to find commercial tenants, so they have resorted to converting spaces into residential units in order to have sufficient income to cover their expenses,” she told BusinessWest, adding that fewer people go downtown, and last October, an anchor restaurant closed, due in part to its customers’ concerns for personal safety after dark caused by poor lighting in the area.

But officials hope that is about to change via a consortium called On the Right TRACK (the acronym stands for Three Rivers Arts Community Knowledge). Partners include the bank, Palmer officials, the PHCC, the Three Rivers Chamber of Commerce, the Palmer Redevelopment Authority, and the Quaboag Valley Community Development Corp.

Individual Efforts

These organizations had known for a long time that something was needed to revitalize Three Rivers, and efforts to that end began in earnest when the Quaboag Valley Community Development Corp., a nonprofit that assists businesses with training and other resources, held a number of public hearings to get input from residents as to whether they believed building upon the cultural and creative economy would attract visitors.

“There is a long history of pride in the cultural resources of Three Rivers that dates back many years,” said Executive Director Sheila Cuddy.

Daniel Slowick of the Palmer Redevelopment Authority agreed, and explained that the village contains many families of Polish and French descent who came to Three Rivers to work in the mills. “One of the hallmarks of the Polish culture was the establishment of Pulaski Park, which draws Polish fans from all over the country who come here every weekend from May to September to hear the bands,” he said, adding that the cultural heritage of the French and Polish has been kept alive.

Dave Golden

Dave Golden shows off some of the student artwork on display at North Brookfield Savings Bank.

Three Rivers’ first major arts venture was established in May 2012, when the PHCC purchased a former church building for $1 with the intent of preserving its historic character and using it as a place to stage performances that would appeal to a diverse group of people.

“We began holding programs in the fall of 2012, and since then we have rented out the space to outside groups, such as Monson Arts Council, who staged a play here,” said PHCC President Robert Haveles.

The nonprofit has been highly successful, and Haveles said it is sought out by national and international performers and has built an e-mail notification list of more than 1,100 people in the two and a half years since it opened.

Other agencies had also been working on revitalization efforts, and in January 2014, the Three Rivers Chamber of Commerce begun putting together a business program that will be launched this year.

“We will provide three months of free rent to new or relocating businesses that will be matched by the building owners. The new businesses will also be provided with a laundry list of professional services donated by members of the chamber, including printing, graphic design, and legal and accounting help,” said chamber spokesperson Renee Niedziela. So far, four landlords have agreed to participate, and the chamber hopes to sponsor two businesses this year.

At about the same time, the Palmer Redevelopment Authority made arrangements with Maple Tree Industrial Center to provide small businesses with free rent for a year, supplemented by a five-week business-planning course offered by the Quaboag Valley Community Development Corp.

But it took nine months before the two groups became aware they were developing similar programs independently.

“That all changed a few months ago,” Slowick said.

When Davey found out about the different efforts taking place, she applied for assistance from the Massachusetts Downtown Initiative, and received funding that will be used to conduct a market study.

Then, when the Mass. Cultural Council announced it was taking applications for the Adams Arts Program, which supports projects that revitalize communities through the creation of jobs in creative industries and engagement in cultural activities, Davey and Cuddy got together and decided it was an ideal opportunity for Three Rivers because of the success of PHCC and the fact that other communities have been successful in using the arts as an economic driver.

A partnership was formed among the Quaboag Valley Community Development Corp., the PHCC, the Three Rivers Chamber of Commerce, and the Palmer Redevelopment Authority, which led to the On the Right TRACK project.

It was submitted last month as part of the application for the Adams grant, and if the town receives the money, it will be used to establish a website and pay for marketing and other costs related to the project.

But interest has already been piqued, and attendance was high at public meetings held in April. “People are genuinely excited about using the arts as a revitalization tool,” Davey said.

Moving Forward

Niedziela says it’s amazing to have so many groups working together on a project that holds unlimited potential.

Slowick concurred, and added that the Palmer Redevelopment Authority has the ability to apply for grants from the Dept. of Housing and Community Development that could include money for an enhanced streetscape, which would complement the park that is within walking distance of Main Street. “Each group involved in this brings something different to the table, and the consortium is pulling it all together to make it happen,” he said.

Indeed, enthusiasm is running high.

“We’re really excited about bringing cultural opportunities to residents and visitors,” Cuddy said, explaining that her organization plans to work with landlords to help them view their properties in a new way.

Which will definitely help this effort to put Three Rivers on the right track.

Palmer at a glance

Year Incorporated: 1775
Population: 12,140 (2010)
Area: 32 square miles
County: Hampden
Tax Rate, residential and commercial: Palmer, $20.63; Three Rivers, $21.35; Bondsville, $21.44; Thorndike, $21.61
Median Household Income: $50,050
Family Household Income: $58,110
Type of government: Town Council
Largest Employers: Baystate Wing Hospital; Camp Ramah of New England; Big Y World Class Markets

* Latest information available

Holding the Line

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Features
Natural-gas Issues Could Hinder Economic Development

Kenn Delude

Kenn Delude says businesses looking to locate in Western Mass. could be scared off by limited access to natural gas.

Rick Sullivan acknowledged the obvious: No one likes paying more for heating their home.

“It’s a very real pocketbook issue. The average resident saw what happened to their electric bill this winter; it went up drastically because of the availability and price of natural gas,” said Sullivan, president of the Western Massachusetts Economic Development Council (EDC). “Right now, natural gas is setting the price for power in this region.”

But, on a larger scale, it’s also setting back the region’s economic-development potential at a time when Western Mass. is starting to see signs of growth and recovery.

The issue is natural-gas capacity in Massachusetts. Simply put, demand for natural gas — among the cleaner and more plentiful fossil fuels available today — has begun to outstrip the capacity of the Commonwealth’s pipeline distribution system.

As a result, Columbia Gas stopped accepting new customers in Easthampton and Northampton at the end of 2014. Berkshire Gas did the same for new customers in Franklin County around the same time, and has since imposed a similar moratorium on Amherst, Hadley, and Hatfield. Similarly, National Grid has a moratorium in place on Cape Cod.

Kenn Delude, president and CEO of Westmass Development Corp., which works to attract new businesses to the region, said the natural-gas shutoff to those communities might hinder future development.

As an example, he cited American River Nutrition, a company that develops and produces natural products to stem age-related or degenerative disease states. The firm has been in the region for 17 years and recently signed a deal for 25,000 square feet of additional space in the Hadley University Industrial Park.

“They’re a local company, and they got trapped by the moratorium — shut off, if you will,” Delude said. “They were counting on — and all their permits and plans were approved for — natural gas. And now, because of the moratorium, they’re forced to find an alternative fuel source.”

That source is propane, which is much more expensive than natural gas, and requires outdoor tanks and truck delivery.

“Propane is not necessarily a good alternative,” Delude said. “It can certainly be very difficult and expensive and challenging to run an industrial plant on propane, especially one of any size. Propane is not the ideal substitute for natural gas.”

The impact, however, extends far beyond companies already established in Western Mass.

“We’re already in a region of the country where utility rates are very high compared to other sections of the country,” Delude said. “This is all about competition for businesses, competing with the Southeast or the Southwest or somewhere else that doesn’t have the same challenges.”

And in communities hit by the recent moratoriums — which are expected to last years — developers are going to be very restricted, he went on. “And it occurs at a very, very difficult time. We spent nearly eight years working through an economic downturn as a region, and we might be at the beginning of a recovery, where we’re starting to see growing businesses need to expand. With this situation where we don’t have any gas, we’re not going to be able to attract certain businesses — and it’s not a short-term problem.”

Outside the Lines

Sullivan, who was secretary of Energy and Environmental Affairs under Gov. Deval Patrick, said that administration was fretting over a growing natural-gas capacity issue three years ago.

“The Patrick administration was concerned about the growing demands for natural gas,” he said. “In the big picture, you’ve got a lot of newer generators going online with natural gas as the primary source of fuel, or converting over to natural gas. In combination with coal going offline and some of the nuclear generators going offline, there is obviously a need [for distribution].”

Rick Sullivan

Rick Sullivan says the state needs to find a way to balance pipeline expansion with continued development of renewable-energy sources.

That means pipelines. At issue has been the desire of energy giant Kinder Morgan to expand its pipelines from Pennsylvania into the Northeast, including New York, Massachusetts, Connecticut, and New Hampshire. Berkshire Gas supports that plan and insists that, without it, natural gas will remain unavailable — indefinitely — to new customers in communities affected by the current moratorium. If the Kinder Morgan pipeline is built over the next few years, the moratorium could be lifted by late 2018, the company claims.

“Our first and foremost responsibilities to our customers are safety and reliability,” Berkshire Gas President Karen Zink said in a statement earlier this year. “The only way that we can assure continued safety and reliability, given current circumstances, is to invoke an across-the-board moratorium. We are in the business of selling and delivering natural gas, and as such, be assured that a moratorium is the last option that we would consider. But reasonable system planning and operation requires that we do so at this time to assure continued reliability for our existing customers.”

She and others noted that inexpensive natural gas has never been more plentiful in the U.S., and that the ability to deliver it to customers is the only challenge.

“There’s no doubt there’s a need currently and going forward,” Sullivan told BusinessWest. “We need future additional generation and additional capacity. Some of that can be filled with true energy efficiency, some filled by renewable energy, but even with all of that, there’s still a need for some additional natural-gas capacity.

“Here in New England — Massachusetts specifically — the infrastructure is old, and it’s also built to a standard of years ago, that no longer meets the needs of today,” he added. “So we had the beginnings of discussions — six New England governors talking about the need to bring in some additional capacities, meaning pipelines. Also, at the same time, we talked about how we can build transmission lines for electricity to hook up to wind and renewable sources, mostly to the north, and also Canadian hydroelectric.”

Patrick supported a bill three years ago that would have paved the way for pipeline expansion, but it ultimately did not pass. For its part, Kinder Morgan has run into often highly coordinated opposition from land owners, conservationists, and other citizens concerned about running a pipeline 180 miles across Northern Mass. — even after the company shifted a long portion of the proposed route into Southern New Hampshire.

When the Franklin Regional Council of Governments asked Kinder Morgan why the pipeline couldn’t run along the Mass Pike, the company said routing lines along existing highway or road corridors presents several challenges.

“First and foremost is safety,” it noted. “Highway corridors generally already have existing utility infrastructure located in or around their corridors. By locating a pipeline in a separate corridor, there is much less likelihood that damage will occur to the existing infrastructure during construction, or that the new pipeline will be damaged by third-party construction or maintenance activities by other utilities or road crews. Separate corridors are also generally less populated as compared to road corridors.”

That doesn’t placate Northern Mass. land owners whose property would be disturbed for a pipeline, and Sullivan understands their concerns. “With energy, there’s never an easy solution, never anything everyone can agree on. For every good thing it can do, there is another side of the coin. To get increased pipeline capacity into the region means you have to build new or expand existing pipelines, and that means construction; that means disturbing rights of way. Everybody needs to understand what those impacts are.”

Then there’s the philosophical question of whether the state should build more capacity for fossil fuel or force additional conservation efforts and renewable-energy generation, such as solar and wind. It’s a question, he said, that must be answered eventually.

“We have concerns about being able to do economic development, particularly as we’re coming into a time of increased interest in Western Mass., either by expansion of existing companies or new companies moving into the region,” Sullivan explained. “Obviously, part of what they look at is, what is the reliability and cost of power? We cannot, from an economic-development point of view, be in a position to say, ‘sorry, we’d love to have you come, but we can’t hook you up to natural gas or supply you with power.’”

Waiting Game

Meanwhile, the ability of energy companies to supply natural gas to new customers — existing customers are not expected to be affected by the moratoriums — is dwindling.

“We have not yet issued a moratorium for gas customers; we have capacity at the moment,” said James Lavelle, manager of Holyoke Gas & Electric. “But we are close to the limit of what we can reliably serve; we don’t have a lot of room for large industrial growth. We can bring in the equivalent of a couple of large industrial customers; that’s what we can accommodate at the moment. But we would like to have much more room than that.”

Even without a moratorium, he said, customers have to deal with cost increases during peak periods as a result of capacity constraints.

“It is to some degree a waiting game,” he said. “The pipeline companies would bring additional capacity, but they have to get various approvals. There also has to be a funding mechanism in place. We’ve had discussions about whether pipeline companies are going to get secured contracts from gas-distribution companies like Holyoke Gas & Electric or Columbia. The other discussion is a tariff, through ISO New England, where the electric rate payers would potentially finance the pipeline.”

Lavelle agreed with Sullivan and Delude, however, that the natural-gas capacity problem is very much an economic-development issue.

“Without doubt there will be impacts,” Delude added. “You may not see most of them or hear of most of them. When word gets out that there’s no natural gas available, you won’t know when a site selector Googles an article or two about gas not being available, and decide they’re not able to give your site consideration.”

But the impact of those invisible decisions could be felt over time, he told BusinessWest, adding that the EDC benefits from the leadership of Sullivan, who is well-versed in economic development, energy policy, and the workings of municipal government, as former mayor of Westfield.

“Ultimately,” Sullivan said, “the responsible position, one the EDC has taken, is that we need more capacity, we support additional capacity, but we don’t necessarily pick which pipeline or how that line would be built or where it should go, specifically. The whole process needs to be honest and transparent, and needs to play out. Whatever the answer is, it has to bring some relief to the capacity issues in Western Mass.”

He added that any pipeline expansion doesn’t have to be overbuilt, and there’s no reason why the state can’t continue to move forward on developing new renewable-energy solutions at the same time. He understands, as well, the environmental concerns some people have about accessing the massive shale reserves from which companies like Kinder Morgan draw.

“Again, that’s another issue,” Sullivan said. “Many passionate people argue on the environmental side of things as well. There’s just nothing easy, or something absolutely everyone can agree on, when it comes to energy. It’s not an easy issue.”

But it could be a precarious one for the entire Western Mass. economy if it isn’t resolved soon, Delude said.

“Clearly, this is a broad-based challenge at a time when the region is beginning to show signs of recovery,” he noted. “Businesses have done a great job becoming more efficient, but at some point, you can only do so much with the space you have, and without gas, it’s going to be a challenge to expand and grow.”

Joseph Bednar can be reached at [email protected]

Community Spotlight: Great Barrington

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Community Profile Features
Great Barrington Gets Creative for Its Own ‘Big Dig’

Christopher Rembold and Jennifer Tabakin

Christopher Rembold and Jennifer Tabakin say construction hasn’t halted plans to transform the former historic Searles High School into a hotel and conference center.

Main Street in downtown Great Barrington has always been an interesting place with lots to do. These days, it still fits that description, but for many more — and quite intriguing — reasons.

A few weeks ago, for example, a crowd of people outfitted in western clothing, including cowboy hats, gathered in front of the coffee shop known as Fuel for what became a Wild West flash-mob gathering.

“Two large hitching posts had been planted in the dirt outside, and two horses, a wagon, and young calves were tied to them as if it was an old western tavern,” recalled Town Planner Christopher Rembold, adding that farmer Stan Stanton, who brought the animals to the site, gave people rides on the horse and buggy, while others enjoyed unlimited coffee on the dusty sidewalk.

Dusty, because the street and its sidewalks have been torn apart as part of a massive reconstruction project on the half-mile stretch of Main Street along which 20,000 to 25,000 vehicles travel each day.

That western-themed gathering was just one of many events and activities drawn up by the town, the Southern Berkshire Chamber of Commerce, and individual business owners to maintain vibrancy in a thriving downtown during a project that is long overdue and will yield long-term dividends — but is, at this moment, a huge pain in the neck.

“We’ve taken a proactive approach because we want to make sure our downtown remains vibrant, so we’re working with local businesses to increase the number of activities they offer,” said Town Manager Jennifer Tabakin, noting that, collectively, these efforts are part of something called the “placemaking” program (more on that later).

“Main Street is not just a road; it’s a place to be. It’s the cultural and commercial hub for all of Southern Berkshire County, and has become our community common,” said Rembold. “We recognized the construction could be disruptive before it began, so we needed to find a way to keep people coming downtown to gather, shop, and dine.”

But while the ongoing construction work is in many ways dominating day-to-day life downtown, there is much going on beyond those scenes, including progress with redeveloping some of the town’s better-known but long-idle landmarks.

For example, the former St. James Episcopal Church, which marks the southern gateway into town, will be transformed into a cultural performing space. Meanwhile, the former Methodist Church at the northern gateway into town, which had also been vacant for several years, was purchased last year by a local developer who just received the permits needed to renovate it.

And the privately owned former train station, just west of Town Hall, was turned into a dance studio last fall, and last year the former Searles High School was purchased by nationally known Iredale Mineral Cosmetics, whose headquarters are downtown.

“They’re working with local hotel owner Vijay Mahida, who owns the Fairfield Marriott on Stockbridge Road, to turn it into a first-class restaurant and conference facility. We hope to see the plans this summer,” Rembold said. “It will bring additional people downtown, as well as jobs.”

Officials say the combination of placemaking events, historic renovations, and infrastructure work will keep Great Barrington vibrant for the coming months — and the long term as well. For this, the latest installment of BusinessWest’s Community Spotlight series, we look at how the picture will likely come into focus.

The Real Dirt

Rembold said Main Street and its sidewalks have needed to be redone for many years.

“They were in very bad shape. We needed new storm-water drainage and a new natural-gas main, in addition to a complete reconstruction of the road and sidewalks,” he said, adding that town officials began planning for the $6 million project in 2009 when they paid Fuss & O’Neill to design a streetscape plan, which included new lighting and traffic signals. At the same time, they applied for state funding to pay for the initiative.

The actual construction began last July, but wasn’t too disruptive because the road had not been torn up. “But we knew this spring and summer would be difficult for businesses,” Rembold said, adding that, by the end of June, the blacktop will be laid from Castle Street to Elm Street, new traffic lights will be installed, and the sidewalks will also be finished. However, J.H. Maxymillian Inc., the firm handling the project, will not complete the work until December, with final aesthetics finished next spring.

That means several more months of Main Street as a construction site, and thus the need for more creative programming to keep downtown humming.

Knowing such initiatives would be needed, town officials last year hired the so-called Project for Public Spaces to conduct a workshop for elected and appointed leaders, the Southern Berkshire Chamber of Commerce, and Lee Bank. “We wanted to find out what they could teach us about what other towns have done during similar construction,” Rembold explained.

The next step was a brainstorming session with local businesses, and since that time, everyone involved has gotten quite creative; even Maxymillian has joined the effort.

“We banned single-use plastic shopping bags last year, so Maxymillian donated 1,000 bright yellow canvas bags with a logo that reads, ‘I Dig GB’ printed beneath the shovel of the arm of a large tractor,” Rembold said.

In an effort to keep people informed, Betsy Andrus, executive director of the chamber, pens a weekly construction update to let people know the status of the project and what Maxymillian, Verizon, and other companies will be doing on a day-by-day basis. Businesses receive notification via e-mail, and the information is posted on the chamber’s website, printed in the Berkshire Record, and read on WSBS radio.

“The town is still functioning, and the police are doing a phenomenal job keeping the traffic moving,” she told BusinessWest. “I drive down Main Street several times each day so I can time how long it takes, and it has never been longer than eight minutes.”

Businesses have also held ‘no sidewalk’ sales; the Farmer’s Market is relocating to a parking lot on Church Street, and the town hopes to stage outdoor movies downtown during the summer.

Another placemaker planned for June 1 involves a collaboration between restaurants that will host a GB Dig and Dine Event. “Picture 200 people dressed in white having an elegant dinner on tables with white tablecloths outside in the midst of the Main Street construction,” said Andrus, adding that the food will be provided by Allium, Castle Street Café, and Prairie Whale restaurants, while unusual, construction-related props will add to the fun.

She added that Barbara Watkins, who owns the Evergreen Fine American Crafts store, has been a lead organizer of the dinner and has gone door-to-door to businesses to generate excitement about the placemaking effort.

The multi-faceted infrastructure work should eventually make downtown Great Barrington an even better place to do business, for both existing ventures and several new concepts that will soon take shape in those aforementioned landmarks.

The former St. James Church, for example, sat empty for four or five years and was slated for demolition until Fred and Sally Harris purchased it to prevent that action. The town provided them with $150,000 of Community Preservation Act funding to support their $7 million investment, and the building is scheduled to open next spring and become a venue for concerts, lectures, and more. The first floor, Rembold noted, was attractively renovated to house a food pantry.

At the former Methodist Church, the developer has plans to place an 80-seat restaurant in the historic building, which Rembold described as “critical to Great Barrington’s identity.”

Progress is also being made at the former Leeds Cleaners. It is privately owned, but the town secured funding from MassDevelopment to conduct environmental testing to determine the cost of any contamination cleanup. “It’s been vacant for years, and there has been a lot of interest in it because it’s in an ideal location,” Tabakin said, adding the study results should help to make it more marketable.

In addition to these development initiatives, a number of new activities and programs are intended to bring people downtown and create more momentum for the central business district.

Paint the Town, for example, taking place at the end of July, will give people the opportunity to take painting classes at three or four outdoor locations. “Several organizations have donated easels, artists are donating their time, and we’re working with the stores to donate cookies and lemonade,” Andrus told BusinessWest. “They really understand it’s time to team up and work together.”

Another initiative, dubbed Decorate and Shade, is aimed at recreating the shade that was lost when the trees on Main Street were ripped up. New ones will be planted, but since they will take time to grow, businesses can purchase large planters shaded by 9-foot umbrellas and set chairs around them. “We’re encouraging them to be creative and use the planters to hold signs, flags, or balloons,” Andrus said.

Digging It

Despite all of the placemaking events and activity, it has not been easy for businesses to contend with the traffic backups and construction. However, some, including Alan Kalish, who manages the Vault Gallery, see it as an opportunity for growth. “We’ve doubled our space in the last two months. The town will be so beautiful when the work is done that we will get more tourists than ever before,” he said. “The construction gave us the impetus to want to do more business.”

Rembold said the investments and the collaborations taking place are significant and bode well for the future.

“Great Barrington may be small, but there is a lot happening,” he noted. “Everything here is getting better, and our downtown is being transformed.”

Great Barrington at a glance

Year Incorporated: 1761
Population: 7,003 (2012)
Area: 45.2 square miles

County: Berkshire
Residential Tax Rate: $13.72
Commercial Tax Rate: $13.72
Median Household Income: $50,882 (2012)
Family Household Income: $75,508 (2012)
Type of government: Open town meeting
Largest Employers: Fairview Hospital; Prairie Whale; Kutscher’s Sports Academy
* Latest information available

Decade Declarations

By
Features
Plan for Progress Gets a 10-year Overhaul

PVPC Executive Director Tim Brennan

PVPC Executive Director Tim Brennan

Tim Brennan acknowledged that it was a loose analogy, but thought it worked effectively.

He was comparing the Plan for Progress — a document first drafted two decades ago by the Pioneer Valley Planning Commission (PVPC), which he serves as executive director — to an automobile.

“They both need regular maintenance, like oil changes,” Brennan explained, noting that the plan requires periodic fine-tuning to reflect changes in everything from demographics to economic-development strategies to government funding priorities. “And they both need major engine overhauls.”

For the Plan for Progress, those overhauls come every 10 years — less-involved updates are undertaken every five — which means the one announced May 4 is the second since the document was first inked in 1994.

And it stresses a number of priorities for this region moving forward, especially the all-important matter of workforce supply and creating more of it. Many Baby Boomers have retired, and tens of millions more will do so over the next 10 years or so, said Brennan, and the task of replacing them will severely test the region and pose a significant challenge for virtually all business sectors, from healthcare to manufacturing to the huge service industry.

This isn’t exactly a news flash, Brennan acknowledged, noting that the Plan for Progress and a host of other reports have sounded the alarm on this phenomenon for more than a decade. But the situation — which was in many ways helped by the Great Recession and its impact on retirement-savings efforts, which forced many Boomers to stay in the workforce longer than they planned — will soon reach a critical stage, if it hasn’t already.

That means the region will soon have to address the matter far more aggressively, and effectively, than it has, despite all those warnings.

“On the talent side, we’re having this whoosh,” he said, using that term to describe the Boomers who have left the workforce or soon will. “Talent is job one; the most important issue for economic development isn’t tax breaks or raw materials or land — it’s really talent now.

“This has been going on for a while,” he went on. “But it’s becoming more intense, and all the projections for the next 10 to 15 years are for labor shortages. We need to intervene.”

There are many other focal points, or so-called ‘decade declarations,’ within the 27-page report, titled “2015-2025: Building Strategies for the Region,” which is available for viewing at www.pvpc.org. They come in three forms — goals, key opportunities, and key challenges — and all of them are regional in scope and focus.

Improving flow in the talent pipeline obviously falls in that last category, where it is joined by “fragile infrastructure systems” and “retention and growth of existing businesses.”

The updated Plan for Progress

The updated Plan for Progress identifies a number of goals, opportunities, and challenges, all with a regional focus.

The key opportunities, meanwhile, involve “leveraging new connections that significantly enhance the region’s economic competitiveness” — a reference to everything from enhanced rail service to broadband networks; “leading the Commonwealth’s clean-energy transformation while moving the region toward a balanced and diversified energy portfolio”; and “harnessing the economic-development potential of the New England Knowledge Corridor.” That’s something Brennan says both Western Mass. and Northern Conn. have essentially failed to do since the corridor was conceptualized 15 years ago.

As for goals, well, there are four of them, which essentially encompass both those challenges and opportunities:

• Develop and maintain a globally competitive and regionally engaged talent pool;
• Foster an environment where established, new, and growing businesses and organizations can thrive;
• Implement and enhance the infrastructure that connects, sustains, and ensures the safety and resiliency of the region; and
• Conduct economic-development activities in a regionally responsible manner, prioritizing collaboration and engagement.

Of course, putting goals, challenges, and opportunities — all identified by a large Plan for Progress coordinating council over the past 16 months or so — down on paper is only one step in the process, said Brennan, adding that the report also identifies specific strategies for reaching those goals and addressing concerns.

As an example, he cited the plan’s last major overhaul, which, among other things, identified a critical need to cultivate young leadership in the region. Strategies to address that matter included creation of what came to be known as Leadership Pioneer Valley, which has created an extensive program to groom young leaders and familiarize them with the region.

Regarding the stated goal of developing a talent pool, the report recommends strategies ranging from bolstering early education to improving K-12 achievement and graduation rates, to enhancing career and workforce training initiatives.

For this issue, BusinessWest takes a look under the hood at the latest update of the Plan for Progress and the priorities it has identified.

Borderline Opportunities

Over the past 15 years, Brennan noted, the Knowledge Corridor, the region stretching from the Vermont border to New Haven, has become a brand. Just how well-recognized a brand it is, both regionally and nationally, is a subject for debate, he said, but added that it clearly hasn’t become much more than a brand.

Moving forward, however, it must do so, he went on, noting that, when it comes to economic development and attracting and retaining employers, there is obviously strength in numbers. The corridor has those, he said, citing a combined population of more than 2.7 million people. It also has more than 40 institutions of higher learning, several major healthcare providers, an international airport, and a host of other assets.

All of these must be exploited and effectively sold, he told BusinessWest, because promoting the Valley’s place in this broader region is perhaps its best hope for growth, given trends Brennan believes will only accelerate in the years and decades to come.

“That critical mass makes us the 20th-largest market in the country, and that’s not inconsequential,” he said. “Our future fortunes are tied to moving beyond this being a brand, and putting as much substance as we possibly can into this and working together.

“It’s a whole new economic ballgame out there; we have to put a different team on the field, and we’ve got to play differently than we did 10 or 20 years ago,” he said, adding that the two states and their leaders will have to put aside the parochialism that his existed historically. “Our nation is going to morph into about a dozen mega-metropolitan regions, and we need to be part of that. I remember one guy said, and I’ll never forget this, ‘you guys better watch out, or you’ll become a cul-de-sac in New England.’”

Harnessing the potential of the Knowledge Corridor is one of the opportunities identified by the report, said Brennan — and they are opportunities, he added, even if some people don’t necessarily recognize them as such. He puts the corridor, those aforementioned ‘connections’ — especially rail service — and the potential to lead the state’s clean-energy transformation firmly in that category.

Regarding rail service, which Brennan has long advocated as a potential economic engine, the emphasis moving forward must be on not only enhancing north-south connections — which have dominated the discussion and the progress made to date — but expanding east-west connections as well.

At present, there is one train a day (the Vermonter) running from Vermont to Springfield, and real potential to bring perhaps a dozen trains a day running between Springfield and New York. A Springfield-Boston connection is further from reality and will come with a hefty price tag, probably hundreds of millions of dollars, said Brennan, but there is considerable interest in one, there have been some signals of support from the Baker administration, and a 2024 Boston Olympics may provide the needed incentive to get the job done.

In the years to come, Tim Brennan says, the Knowledge Corridor must become much more than a brand.

In the years to come, Tim Brennan says, the Knowledge Corridor must become much more than a brand.

“We think this has a lot of benefit potential,” he said of rail service in any direction. “Wherever you have a place where trains land, whether it be at Union Station [in Springfield] or one of the platforms to the north, you get these sort of hotspots of development around it — a quarter-mile or half-mile around the station, you tend to get a development surge.

“If you have enough service and it’s reliable out on that rail line,” he went on, “young people and seniors tend to gravitate toward this kind of living situation more and more.”

He cited Boston as an obvious example, even with all the problems that visited the Massachusetts Bay Transportation Authority this past winter.

“We’re not arguing that we’re Boston, but we have a toehold on north-south connections to New York,” he explained. “And if we can offer good, robust, reliable service … we’re an affordable area, and people can commute from here. We think we can capture folks, and that’s one way to build the talent pool in the Valley.”

As for the movement away from fossil fuels, this could be an opportunity to create jobs, said Brennan, and also maneuver around what is becoming a growth-stifling problem with natural-gas distribution.

“I think there’s a transformation going on,” he said of what some call a nationwide trend toward greener sources of energy. “And those who lead it are going to be in a better situation to be economically competitive.

“The numbers seem to indicate that we’re a leader inside a state that’s a leader,” he went on. “So let’s keep that going.”

Going into Labor

While the report urges action on the many opportunities it identifies, the main thrust of the document is its focus on the talent pool — how to ensure there is a deep one for the years and decades to come, and the sense of urgency that must be attached to efforts to address this concern.

“One of our biggest assets in the Valley and the Knowledge Corridor is one of the most highly productive workforces in the country,” said Brennan. “But the question we’re facing is, how do we replace those men and women and keep that asset in place?

“On the supply side, we need lots of replacement troops,” he went on, adding that, while the situation hasn’t reached a critical stage (at least in some sectors) because many individuals are working longer than they anticipated a decade ago and others have embarked on what’s known as ‘soft retirement,’ where they’re still in the workforce but on a part-time basis, serious crunch time is fast approaching.

The emphasis isn’t solely on numbers, he said, adding that the accumulated talent must possess the skills required by businesses — and there will be many of them — with ‘help-wanted’ signs out. “On the demand side, you have lots of jobs that are opening, but do the bodies have the skills to fill those posts?” Brennan asked rhetorically, adding that, too often, the answer is ‘no.’ “So it’s a two-pronged problem.”

The region’s employers, not to mention workforce-related agencies such as the regional employment boards, have long recognized the existence of a skills gap, Brennan went on, and there have been efforts to address it.

Moving forward, there must be more initiatives such as Training & Workforce Options (TWO), created by Springfield Technical Community College and Holyoke Community College to assist employers with the challenge of training individuals for specific jobs, and Westfield Vocational Technical High School’s new program to train people for jobs in the aviation field.

“We need to intervene over the next decade,” said Brennan, “so that, by the end of this 2015-2025 period, we’re not wringing our hands about how we had a problem, we forecast it, and yet we didn’t do enough it to change it.”

Such intervention efforts must involve a number of players, including the workforce-development agencies and the region’s many colleges, he said, adding that the focus will be on everything from early childhood education to training and retraining those already in the workforce or on the outside looking in, to stemming the so-called brain drain.
“There’s a lot of talk about how we get more of the public and private colleges to offer internships in jobs that are in the career paths of young men and women, so they get a job as they come out with their degree,” he said, adding that the talk needs to turn to action. “The message has gotten through, but we need a lot of implementation out there to tackle this for the long term.”

But talent is only one of the issues facing area business owners and managers, said Brennan, noting that one of the updated plan’s goals is to foster an environment where established and new businesses can thrive.

Like efforts to grow the talent pool, meeting this goal will be a multi-pronged effort, he said, adding that there is a great deal of entrepreneurial energy in the region and thus a large number of startups and early-stage businesses. Likewise, there are a number of businesses led by Baby Boomers who will be retiring soon and are thus facing the many daunting issues involved with transitioning to the next generation — or deciding if there will be a transition.

These ventures will need assistance in forms ranging from capital to succession planning to, yes, talent, Brennan said, noting that the region must build on an already-significant support network.

“When we did a growth-business study with the Donahue Institute, they said the good news from the recession period was that most of the small businesses hung in there — we didn’t have an avalanche of closures; they sort of held their ground,” he explained. “And now, many of these companies are growing; what resources will they need in order to continue growing?

“Many of them need an infusion of capital, and some of them are so small that they can’t get away from the oven or the drill press to go look for help,” he went on. “We need to create ways to get information to these small businesses in a user-friendly way, and we need to make these services more seamless so they don’t have to go here for this and there for that.”

Driving Forces

Like the original Plan for Progress and the first 10-year update, this latest document is intended to serve as a road map of sorts, said Brennan, identifying preferred routes and speed bumps on the way to a more prosperous future for the Pioneer Valley.

With this latest overhaul, the region now has some directions to follow, he went on, adding that, if area leaders stay on course, they should reach the intended destination.

But the road ahead has a number of curves, he implied, and the region would be wise to heed both the speed limit and the many caution signs.

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

Community Spotlight: West Springfield

By
Community Spotlight Features
West Springfield Focuses on Memorial Avenue

Mayor Ed Sullivan

Standard Plating on Main Street was devastated during the 2011 tornado, and Mayor Ed Sullivan says the city is working to clean up the property and market it.

West Springfield is a city on the move, Mayor Edward Sullivan says, and the Memorial Avenue corridor is exhibit A.

“We’re excited about the work that will be done and think there will be some great multi-purpose opportunities along the corridor,” he told BusinessWest. “It has needed work for years, and the redesign we’re planning will make it a pretty special place to own a business. It’s close to major highways, and the MGM casino in Springfield will increase traffic.”

Indeed, an increase in vehicular traffic is expected when the casino opens in Springfield’s South End, right across the Connecticut River, in 2017. While that’s not why the work is being undertaken, the casino has changed the scope of what will be needed, since pedestrian and bicycle travel are also expected to rise.

And one of the major projects is already underway. The rotary on the West Springfield side of Memorial Bridge, which contains two overpasses of Route 5 to the north and south, is being reconstructed by the state Department of Transportation under its Accelerated Bridge Program.

The rotary bridges were found to be structurally deficient several years ago (but still safe to drive on), and crews have been working since March to relocate major utility lines and perform other preliminary work. Phase 2 of the project will take place from May 29 to June 2, and officials anticipate the third phase will be completed over another long weekend, June 19-23.

“The bridges are being prefabricated offsite and will be handicapped-accessible. It’s important because some [pedestrians] have complained they can get on the bridge in Springfield but can’t get off it in West Springfield,” Sullivan said.

In fact, the project has been designed in accordance with the state’s Complete Streets program, with the goal of expanding mobility for all types of traffic, including pedestrians and bicyclists, while supporting a healthier environment and creating a stronger community.

Department of Public Works Director Robert Colson told BusinessWest that the state staged two public meetings in advance of the work, and its final design reflects concerns expressed by people who attended the sessions.

“MassDOT has taken the existing footprint of the rotary into account, and the new bridges will have protective curbing to delineate motorists from pedestrians and cyclists, very similar to what is on the Memorial Bridge,” said the mayor, adding that the sidewalks curving around the rotary will be eight to nine feet wide. “It’s important, especially during the Big E, because the fair generates a lot of foot traffic.”

The design includes flashing lights that pedestrians will be able to activate with the press of a button to alert motorists they will be crossing one of the junctions in the rotary that lead to Route 5, Memorial Drive, and Riverdale Street.

The rotary marks the gateway to the Memorial Avenue corridor from Springfield, while the gateway from Agawam lies at the other end of the roadway, and the entire 1.7-mile strip will be revamped. To meet that goal, the city signed a contract several weeks ago with Greenman-Pederson Inc. to create a design that will incorporate principles in the Complete Streets program. It will be paid for with $280,000 from the city’s capital-budget funding, which was set aside in previous years for the project, and $665,000 received from MGM as part of a compensation agreement to deal with the expected increase in traffic.

When the design for the corridor is finished, Sullivan said, the city will seek grant money from MassDOT and MassWorks to pay for work that will need to be done, which will include infrastructure improvements, such as new pavement and replacement of underground utility lines.

City officials hope they will be awarded funding for the project, but Sullivan said he met with the director and staff of MassWorks on April 15 and was told the grants are very competitive and they could not guarantee anything. However, Colson is cautiously optimistic that the project will be given a high-priority status.

“Normally, we would wait 10 years for a project of this magnitude to get on the list,” he said. “But we are very hopeful that the design by GPI will become a high priority because of the casino and the increase it will bring in traffic. We can’t just fix the pipes and pavement. We have to turn Memorial Avenue into a Complete Streets corridor; otherwise it could present a significant safety hazard.”

Sullivan explained that residents in the Merrick and Memorial neighborhoods in West Springfield will be closer to MGM than people in neighborhoods in Springfield, and those who get jobs at the gaming establishment may choose to walk to work, which would be an easy commute over the Memorial Bridge.

“Plus, the Big E is the number-one tourist attraction in New England, and the casino will be at the other end of the bridge,” he added. “There will be two main attractions at either end of Memorial Avenue, so we expect a real increase in pedestrian, bicycle, and vehicular traffic.”

Continued Progress

Although Memorial Avenue is built out, Sullivan said it’s possible to “take old space, rehab it, and make it new, and West Springfield will serve as an example of how it can be done.”

To that end, the city is working with the owner of Standard Plating to clean up the property that was demolished by the 2011 tornado, take ownership of it, then market and sell the site.

The city received $750,000 from the Community Development Block Grant – Disaster Recovery program to remove contamination at the brownfields site and raze the building, which sits on 964 Main St., within walking distance of the Memorial Avenue rotary.

“We’re in the process of studying the environmental hazards and coordinating efforts with the Department of Environmental Protection,” said Joe Laplante, director of Community Development. “We hope to have all of the work done by the end of the year and have a vacant lot available for development. It’s not only a good spot for a business, it’s an important part of the [Memorial Avenue] strip aesthetically as visitors come into West Springfield.”

Although the Memorial redesign has not begun, change is already occurring, and Sullivan believes infrastructure and aesthetic improvements will spur growth in the future. Footit Health Care Store is getting a facelift, and Fathers and Sons plans to demolish a number of its buildings and construct a new $3 million Audi showroom and service center along the thoroughfare.

Plans are also in place for the former St. Ann’s Church site that Colvest-West Springfield LLC purchased from the Diocese of Springfield. Sullivan said the developer hopes to build two retail storefronts and a bank with an ATM on the property, and its proposal has advanced through the site-planning review process and will be voted on during the second City Council meeting in May.

Special efforts are also being made to help new Americans in the Memorial-Merrick neighborhoods who want to start businesses, and SCORE of Western Massachusetts, which provides free services to entrepreneurs, has been working in conjunction with Tara Gehring, the city’s economic development coordinator and assistant planner, to facilitate their needs.

In addition, a collaborative effort is taking place between SCORE, the city, and Ascentria Care Alliance, which also provides services to help people who own or want to start small businesses. “We are working together to host a seminar on what it takes to open a business in West Springfield,” Sullivan explained. “We will guide participants through the permitting process required by the Health Department, Building Department, Planning Department, and License Commission so they know the steps they will need to take to obtain a certificate of occupancy and open the doors to a business. It will be an amazing event, and we will have interpreters to bridge language barriers.”

Meanwhile, the Community Development office and police substation recently moved into a 3,000-square-foot building at 389 Front St. that was purchased last year with $775,000 in Community Block Grant funds. The offices had been housed in rented space on Front Street, and the new location will double their space. “We are thrilled about our new home. It’s right next door to Alice Corson Playground, which is the only full-fledged playground in the neighborhood, and since it’s twice the size of our old facility, it’s a perfect place to share with the community,” Laplante said.

The building, which most recently served as a daycare facility for Sunshine Village, had been vacant for several years, and the owner approached the city when he was ready to sell it. “We thought it was a really good match for what we needed,” Laplante added.

The Parks and Recreation Department will have a satellite office and community room in the back of the building, and the community policing station will face the playground. The mayor said the interior has been completely renovated, thanks in part to in-kind donations from Home Depot. The city also plans to install new sidewalks and conduct targeted rehabilitation work on lower-income housing in the neighborhood.

Other renewal ideas will come to fruition in the second phase of the Merrick-Memorial Avenue Study, completed last year by the Pioneer Valley Planning Commission and reviewed by the Redevelopment Authority. It will serve as the master plan for Memorial Avenue, with suggestions including the enhancement of the River Street area by redeveloping the empty lot that formerly housed the Medallion Motel.

“The idea is to build a professional building there,” the mayor said, noting that the study proposes construction of a mixed-used structure with retail shops on the first floor and office space or apartments on the second floor that could help fill the need for multi-family housing in the city.

Bright Outlook

The MGM casino will not be completed for several years, but officials believe it will benefit businesses on Memorial Avenue. However, the city is determined to maintain the quality of life in neighborhoods that will be in close proximity to the gaming establishment. To that end, an overlay district was approved last July that prohibits the establishment of a wide range of businesses, including adult book stores, adult clubs that display live nudity, adult motion-picture theaters, check-cashing and pawn shops, hourly-rental hotels, and similar operations.

“It’s important to maintain and improve the quality of life for our residents and keep unwanted businesses out,” Sullivan said, noting that the district is bordered by the Westfield River to the west and south, the Agawam town line to the southeast, the Connecticut River to the east, and Park Street and Park Avenue to the north.

Plans are also being made to improve other areas of the city, and the state Interagency Permitting Board recently voted to accept portions of Front Street as a “priority development site,” including the former Southworth Paper Co. mill. Consultants have suggested using the main building, which contains most of the available space, for mixed-use development, and officials say having that area of Front Street designated as a priority development site will increase the likelihood of obtaining grant money and guarantee local permitting within 180 days, along with help from the state in marketing the site.

Sullivan said efforts are also being made to streamline the city’s permitting process via software that will allow people to do business online. “It will be in place by the end of the year, and we plan to open a kiosk in Town Hall where people can fill out applications for large projects and pay with a credit card.”

In addition, the Morgan Sullivan Bridge, which spans the Westfield River and leads from West Springfield into Agawam, is slated for reconstruction in 2017 and will also be redesigned according to the Complete Streets program.

“The projects we have planned are big and will take a few years to finish, but we are anticipating change,” the mayor said. “The potential is unlimited, and as we move forward into the 21st century, we believe Memorial Avenue will become even more vibrant than it is today.”

West Springfield at a glance

Year Incorporated: 1774
Population: 28,391
Area: 17.5 square miles

County: Hampden
Residential Tax Rate: $16.99
Commercial Tax Rate: $33.19
Median Household Income: $54,434
Family Household Income: $63,940
Type of Government: Mayor, City Council
largest employers: Home Depot; Interim Health Care; Mercy Home Care; Northeast Utilities

* Latest information available

Meet the Judges

By
Features
Panel will decide for the Continued Excellence Award winner

Carol Campbell

Carol Campbell

Eric Gouvin

Eric Gouvin

Kirk Smith

Kirk Smith

With nominations now being accepted for BusinessWest’s Contined Excellence Award, three judges — Carol Campbell, Eric Gouvin, and Kirk Smith — have been chosen to study the entries and determine an inaugural winner.

The new award, sponsored by Northwestern Mutual, is an offshoot of BusinessWest’s 40 Under Forty program, which recognizes young professionals for their career accomplishments and civic involvement. The Continued Excellence Award will be presented annually to one former 40 Under Forty honoree who, in the eyes of the judges, has most impressively continued and built upon the track record of accomplishment that earned them 40 Under Forty status.

The award will be presented at this year’s 40 Under Forty Gala on June 18 at the Log Cabin Banquet & Meeting House. All 40 Under Forty winners from 2007 through 2014 are eligible. Nomination forms are available at businesswest.com and due by 5 p.m. on May 22.

For each application, the judges have been asked to consider how the candidate has built upon his or her success in business or service to a nonprofit; built upon his or her record of service within the community; become even more of a leader in Western Mass.; contributed to efforts to make this region an attractive place to live, work, and do business; and inspired others through his or her work.

The judges will first narrow the field of nominees to five candidates, who will be informed that they are finalists for the coveted honor — an accomplishment in itself. They will then choose a winner, the identity of whom will not be known to anyone but the judges until the night of the event.

The judges are:

• Carol Campbell, the founder, president, and CEO of Chicopee Industrial Contractors Inc. (CIC), an industrial contracting company established in 1992, specializing in providing quality services in plant relocation, machinery installations and riggers, millwrighting, and industrial construction.

Campbell serves on the boards of Associated Industries of Massachusetts, the Greater Chicopee Chamber of Commerce, Health New England, Westmass Area Development Corp., and the Women’s Fund of Western Massachusetts. In 2014, she was honored as Woman of the Year by the Professional Women’s Chamber, and in 2002, CIC was honored by the Greater Chicopee Chamber of Commerce as Business of the Year. She was a judge of BusinessWest’s 40 Under Forty Class of 2009.

• Eric Gouvin, dean of the Western New England University School of Law. A faculty member since 1991, he teaches in the areas of corporate and commercial law. He has published numerous law-review articles, has taught and presented papers around the world, and is a co-author of the treatises Blumberg on Corporate Groups and The Law of Corporate Groups: Jurisdiction, Practice and Procedure.

Gouvin is the founder of both the law school’s Small Business Clinic and the university’s Center for Innovation & Entrepreneurship. He has been involved in the Entrepreneurship Ecosystem Committee of the Economic Development Council of Western Massachusetts. He sits on the advisory board of the Entrepreneurial Initiative of the Harold Grinspoon Charitable Foundation and on the Kauffman Foundation’s eLaw website editorial board. He served as a judge of BusinessWest’s 40 Under Forty Class of 2011.

• Kirk Smith, president and CEO of the YMCA of Greater Springfield. Smith grew up in a single-parent home with seven siblings in the largest ghetto in Cincinnati, a community that was crime-, drug-, and alcohol-infested. To stay out of trouble, he played sports at the Boy’s Club. Today, he helps other young people stay out of trouble and achieve success.

In addition to his role at the YMCA, Smith is an ordained minister and motivational speaker. He has been featured on several national and local television shows and in news publications and magazines discussing YMCA work in urban communities and professional staff development. He served as a judge of BusinessWest’s 40 Under Forty Class of 2012.

Recognizing Continued Excellence

By
40 Under 40 Features
BusinessWest to Present New Award to 40 Under Forty Alums

40under40continuousExcellenceAwardOnline

Presenting Sponsor:

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When BusinessWest launched its Forty Under 40 program in 2007, it did so to identify rising stars across our region — individuals who were excelling in business and through involvement within the community — and celebrate their accomplishments.

Today, BusinessWest is announcing a new award, one that builds on the foundation upon which 40 Under Forty was created. To nominate someone for this award, go HERE. To review an honoree’s profile piece from the year they were honored go HERE.

It’s called the Continued Excellence Award. Sponsored by Northwestern Mutual, this honor, as the name suggests, will be presented to the individual who, in the eyes of a panel of three judges, has most impressively continued and built upon the track record of accomplishment that earned them 40 Under Forty status.

The award will be presented at this year’s 40 Under Forty Gala on June 18 at the Log Cabin Banquet & Meeting House, and will providing a fitting climax to what is always a memorable evening.

This will be a nomination-driven process, with nominations due to BusinessWest by 5 p.m. on May 22. Eligible candidates are those from all eight 40 Under Forty classes prior to the current year.

BusinessWest will announce this year’s judges in its May 4 issue. Judges weighing the nominations received will consider:

• How the candidate has continued and built upon his or her success in business or service to a nonprofit;
• How the candidate has continued and built upon his or her record of service within the community;
• How the candidate has become even more of a leader within the Western Mass. community;
• How the candidate has contributed to efforts to make this region an attractive place to live, work, and do business; and
• How the candidate has been able to inspire others through his or her work.

The judges will first narrow the field of nominees to five candidates, who will be informed that they are finalists for the coveted honor — an accomplishment in itself. The judges will then choose a winner; the identity of whom will not be known to anyone but the judges until the night of the event.

Kate Campiti, associate publisher of BusinessWest, said the award was created to recognize those who have taken already-impressive résumés — it takes one of those to become a 40 Under Forty honoree — and committed themselves to add new lines to it.

“All of our 40 Under Forty honorees — and there are, with this year’s class, 360 of them — are leaders; they excel in their chosen profession, and they give back within the community,” she said. “This award seeks to identify those individuals who continue to build upon their track record of excellence and find new ways to improve quality of life in this region.”

Kate Kane, managing director of the Springfield office of Northwestern Mutual, presenting sponsor of this year’s 40 Under Forty program and this new award, agreed.

“The 40 Under Forty program has provided this region with an effective vehicle for recognizing those individuals across Western Mass. who are doing great things, and doing them at a relatively young age — accomplishments that often go unrecognized,” she said. “With this new award, we wanted to go a step further and recognize individuals who have made an even deeper commitment to this region.”

While doing all that, the new award will certainly build upon the excitement and prestige of the 40 Under Forty program, and add still another level of suspense to what is already one of the best-attended and most anticipated events of the year.

“This should provide a thrilling climax to what will be a great night,” said Campiti. “This is an event people wait for all year, and now we can add still another layer of excitement.”

Encountering CryptoWall

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Features
How a New Type of Virus Is Destroying Small Businesses

By DELCIE BEAN

Since the advent of the computer, even before the Internet, there have been viruses.

At its most simple form, a virus occurs when malicious computer code is hidden inside of other programs or data. While the concept of a virus itself is anything but new, just about everything else about them is.

Delcie Bean

Delcie Bean

A computer virus typically fits into one of three categories. First are nuisance viruses, typically created by a single person or a very small team that creates a virus that makes a computer do something that frustrates or annoys the user. In these cases, the most that is ever gained by the authors is bragging rights among their peers.

Second are resource viruses, which turn a computer into a robot that can be controlled by a hacker to do things like send spam e-mail. Typically the creator has a financial motive, but the end user whose computer is infected doesn’t typically suffer any consequences and, in many cases, might not even realize for months that they are infected.

For many years, these were by far the two most common types of viruses, but over the last 18 months, we have seen an unprecedented number of infections by a third category called ransomware. This type of virus infects a user’s computer and then holds the data contained on it hostage for a ransom.

As if that wasn’t scary enough, there is something else that makes this particular category a real concern. Normally a virus will come out, it will run its course, a protection will be developed by the antivirus community, and the problem will slowly fade out of existence. In this case, however, not only has the antivirus community been having a very hard time figuring out how to block it, each time they have been successful, the virus has come back a few months later even stronger and harder to stop.

The latest virus of this third category we find ourselves tangling with is called CryptoWall 3.0. We have been dealing with versions of this virus for the past two years; however, this latest strand is without question the most dangerous and complex virus that has ever hit the U.S. This is without question cyberterrorism, and the victims this time, more than ever, aren’t just home users, but businesses.

Once you get this virus, it immediately begins encrypting any data it can see. It scans your network drives, Dropbox, Google drive, and desktop, and encrypts everything it can touch. It is even able to infect your backups so you can’t simply just restore your files.

Once the files are encrypted, you have to pay a ransom to get them unencrypted. Some versions of the virus are even using a complex algorithm that estimates how much money they think you can afford. Most people end up with a $500 ransom at first that gets larger the longer you don’t pay it. However, you have only 30 days, and after that, you’re done. If you pay the ransom, they will promptly send you a key that will unlock all of your files. If you don’t, your files are gone forever because you will never be able to open them.

Over the last three months alone, I have personally seen a wide range of victims, including medical offices that have lost access to their electronic medical records as well as other critical patient data, law firms that lose access to client-management systems and case files, companies from all industries that lose access to their e-mail, municipalities that lose access to their billing systems, and manufactures that lose access to their ERPs.

In every single case, it was a work-stopping event where the business owner was put in the very difficult situation of having to decide to pay a ransom to an overseas terrorist or lose access to critical data forever.

In the short term, there is little we can expect from law enforcement. The terrorists seem to be aware of how to escape prosecution, using bitcoins as their form of ransom payment and being careful to never hit any one customer for more than a couple hundred thousand dollars, well beneath the realm of investigation for the FBI.

Fortunately, there are some things you can do. First, have your e-mail filtered externally by a reputable third-party cloud service. This helps to keep an e-mailed infection from ever reaching your network. Second, have a business-grade firewall that has the option of subscription-based security services, — and, of course, activate them. Third, use a remote backup application to back up your data offsite and in a way that the virus can’t infect. Fourth, make sure you are using a reputable anti-virus product that has a centralized management component, that it is installed on every machine, and that it is set up to send out notifications to whomever manages your IT if a threat is detected.

There is no silver bullet here — it just isn’t that easy. With just one of these groups estimated to have reaped $3 billion in revenue last year alone, stopping their attacks isn’t going to be easy, and it’s only going to get harder. Your best defense is to make sure you have well-educated and experienced resources looking out for your business’s interests.


Delcie Bean is founder and CEO of Paragus Strategic IT; (413) 587-2666, ext. 105; [email protected]

Investments for the Future

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Features
Common Capital Program Helps Individuals Fuel Small Businesses

Common CapitalBeverly Weeks spent close to two decades as a librarian at West Springfield High School, so she understands the importance of researching matters thoroughly.

And that’s exactly what the now-retired Weeks did several months ago when she decided to reel in one of her investments, which she determined was too heavily focused on fossil fuels, and redirect that money toward something far more sustainable — and rewarding.

That research took her to Common Capital’s Community First Fund, which pools investments from people like Weeks and loans them to individuals trying to get a business off the ground or to that proverbial next level.

And that’s where her search ended.

“I was looking around for alternatives — I was searching for investments that would go back into my community, and this struck me as a good one,” she told BusinessWest. “I liked the fact that I would be making a loan that then makes it possible for a venture to get on its feet or add a new aspect or product to its business.

Claudine Baj

Claudine Baj says loans channeled to her through Common Capital have helped her expand her kitchen and bring in needed help.

“And I like the fact that it’s a loan, so the money keeps circulating,” she went on, adding that, as part of that extensive research she conducted, she read how Common Capital, formerly the Western Mass. Enterprise Fund, assisted some of those businesses crippled by the fire in a Hadley strip mall in the fall of 2013. “It’s rewarding to lend a helping hand — or a helping dollar, as the case may be.”

Such sentiments are exactly what administrators at Common Capital had in mind a few years ago when they decided to become part of what is now a national trend toward creating community loan pools to assist fledgling businesses.

Chris Sikes, Common Capital’s CEO, said this movement, if it can be called that, can be traced to New Hampshire, and it has quickly spread to many other areas of the country.

That’s because the concept is fairly simple, and — to the growing number of people who, like Weeks, desire investments that that can in some way be categorized as ‘sustainable’ — it’s also quite appealing.

Here’s how it works locally: the Community First Fund will accept donations of any size from $500 to $50,000 (the old floor was $1,000, but it was lowered to enable more people to participate). The loan term is three years with a 2% annual rate of return (better than most currently advertised CD rates certainly), with interest paid to participants semi-annually. Common Capital’s initial goal was to raise $500,000, but that has been passed — approximately $600,000 has ben amassed to date — and the new target is $1 million.

Contributions are pooled and placed in Common Capital’s general fund, where they are loaned to a diverse and growing roster of entrepreneurs who need some capital to make an important step forward, whatever that might be.

People like Claudine Gaj.

She started the Magic Spoon, a catering business, in 1998, and, over the ensuing years, has recorded steady if unspectacular growth. By early last year, she had come to a point most entrepreneurs reach, where she really wanted and needed to bring in help.

Jerry Zalucki, seen here with his wife, Suzanne

Jerry Zalucki, seen here with his wife, Suzanne, says that, when banks wouldn’t listen to his plans for his fledgling business, Common Capital would.

First, though, she needed to expand her facilities and add equipment, and to do that, she needed capital. She has found it through two loans facilitated by Common Capital and channeled through the Samuel Adams Brewing the American Dream loan program, launched by the Boston-based company’s founder, Jim Koch.

“I went to a Brewing the American Dream event, a meet-and-greet, and I got to meet Jim Koch,” Gaj recalled. “He said, ‘where do you want to be?’ And I said, ‘I really want to hire someone who has skills so I can get out of the kitchen, do more marketing, and be the boss, not the business.’

“He said, ‘what’s stopping you?’ and said, ‘I need to remodel my kitchen,’” she went on, adding that the second loan ($8,500) came through in January. She has, in fact, hired someone, and is “getting there” when it comes to bringing in more business.

Baj is, in many respects, the type of small-business owner that Common Capital assists, said Sikes, adding that the unofficial mission behind the Community First Program is to put more companies like Magic Spoon in the portfolio.

Thus, the program represents the quintessential win, win, win scenario. Donors win because they enter into totally safe investments (loans are secured by Common Capital) with a decent rate of return while spurring economic development and job creation in the region; loan recipients win because they secure financing they probably couldn’t receive from traditional sources; and the region wins because the fund is fueling a recognized surge in entrepreneurial activity.

For this issue, BusinessWest takes an in-depth look at the Community First Fund and the many different ways it can measure success.


The Ride Stuff

Jerry Zalucki was searching for the right words. It’s not that he didn’t know what to say — he certainly did. He just didn’t know how, at least without offending a large group of business professionals.

He was trying to describe the commercial-lending environment in early 2011, just a few years after the Great Recession, and, more specifically, what it was like to be on the other side of the table from those doing the lending — or not.

“Let’s just say … well, let’s just say … it wasn’t a good time to be out there for looking for a loan,” he told BusinessWest, adding that it was his misfortune to be seeking some capital at that time for a venture called Auto Custom Leathers, an offshoot of a larger enterprise that had been sold.

It specialized in after-market leather and vinyl auto interiors — its current marketing slogan is ‘cover your ride with our hides’ — and Zalucki was able to use his own money to get the business into what he would approximate as first, maybe second gear.

“We had about 1,000 patterns, and I had the know-how, the knowledge, and the market idea, and thought I could make a go of it,” he recalled. “I had a little bit of money and did what I needed to do to get it going — but I knew it wasn’t enough.”

Indeed, to gain any real speed, Zalucki knew he needed capital, but the banks weren’t bashful about saying no, without even really hearing him out, at least in Zalucki’s estimation.

“You know when someone looks like they’re listening, but you know they’re not really listening … that’s how I felt. I had an idea, I did the numbers, I crunched everything, but no one cared,” he recalled, adding that a friend put him in touch with Sam Ortiz, director of Lending at Common Capital, who not only listened, but asked a number of questions.

Fast-forwarding a little, Common Capital was able to award Zalucki a $100,000 loan and a $50,000 line of credit. He used that capital to buy some equipment and expand the venture. His workforce went from eight to 15, and to accommodate the new growth created by that expansion, Common Capital awarded him a second package totaling $225,000.

“If it wasn’t for them, there’s no way I would have continued, and no way all this would have happened,” said Zalucki, adding that, while he’s not exactly in the driver’s seat, figuratively speaking, he certainly has his business on the right road.

In essence, Common Capital was created to help people like Zalucki and ventures like Auto Custom Leathers, said Sikes, adding that the Community First Fund, which accurately reflects the agency’s mission statement, was launched so the institution could assist more ventures like this one.

“Our goal as a nonprofit and as a community lender is to create economic opportunity,” he explained. “And central to that is creating a local, sustainable economy, and one of our main strategies for doing that is getting the community involved in its own economy.

“We have the ‘buy local’ movement, and we have the ‘invest locally’ movement as well,” he went on. “The Community First Fund provides an opportunity for people to invest locally and see their loans go into local businesses, create jobs, generate more local goods and services, and provide area residents and businesses more opportunities to buy local goods and services. We see this as a multiplier effect.”

In many respects, the timing for the launch of the program could not have been better. Indeed, several forces are coming together to make the Community First Fund a vehicle for economic development — and an attractive investment.

First, Baby Boomers — and also the generations behind them — are coming into money, record amounts of it, noted Sikes, quoting statistics showing that the Boomers stand to inherit something north of $30 trillion through what’s known as the ‘great wealth transfer.’ Meanwhile, many Boomers have done pretty well themselves, he went on, adding that many are seeking not only places to put their money, but places that meet a growing sense of environmental and societal sustainability — and responsibility.

At the same time, there is a great deal of entrepreneurial energy in the region, said Sikes, citing the efforts of groups such as Valley Venture Mentors and others to encourage entrepreneurship and mentor small-business owners. Also, with the arrival of MGM Springfield, there may be opportunities to do business with the casino giant for those with the wherewithal to take advantage of them.

Inevitably, most small-business owners will need capital, he continued, and some will need to turn to what would be considered non-traditional sources to get it.


Generating Interest

Chris Sikes, CEO of Common Capital

Chris Sikes, CEO of Common Capital, says the Community First Fund enables individuals to get involved with the local economy.

Helping to provide such funding is rewarding for Community First Fund participants on a number of levels, said Sikes.

“For the investor, it’s a chance to really feel and know that, financially, they’re investing in the community,” he said. “And that has a psychological, social, and even emotional impact on people, so they’re more concerned about the community.”

Elaborating, he said that, in the larger scheme of things, $500,000 or $1 million is not a large amount of money. But when one is talking about small (often very small) businesses, such an amount can go a long way and make a huge impact in the life of an enterprise.

“What we’re doing at Common Capital is really exciting, and we’re going to need a lot more local capital moving forward,” he explained. “Public monies are going to be diminishing, and the private investments are going to be more and more important.”

Those sentiments, or words to that effect in literature introducing and explaining the Community First Fund, resonated with Marty Wohl.

A Northampton-based dentist, he was, like Weeks, searching for investments that would do more than earn a respectable return. And he was motivated by the opportunity to get involved in a meaningful way.

“This program piqued my interest because, living in a community for a long time, you support different activities, causes, and charities,” he explained. “And this seemed a little like providing a fishing pole instead of a fish. It just made sense to provide funds that can be returned, but also make a difference.

“In a sense, it’s like a municipal bond, but obviously without any collateral or security or insurance,” he went on, adding that he became a participant nearly two years ago. “But being so local, it’s very effective for community building. And there’s a recognizable need for this, and that’s satisfying as well.”

Sikes said Wohl is typical of many donors to the fund in that he’s a professional from the Northampton-Amherst area (the northern portion of the region seems to be embracing this concept more than the Springfield area to the south), has a strong sense of community, and was looking for a sound, safe, and sustainable investment.

Moving forward, Common Capital’s goals are to grow the fund through wider participation, eventually improve the rate of return to make it more attractive, and perhaps give investors more control over where funds are directed — such as to a specific region or economic sector, Sikes told BusinessWest.

To reach more potential participants, Common Capital will more aggressively market the concept; to date, it has relied on word of mouth and information on its own website, common-capital.org. And one of the most effective ways to market the fund is simply to tell the stories of business owners who have been supported by loans from the agency.

“We want to get people excited about this, because it’s helping us do some great things in the community,” he explained. “We want to grow this fund and give it a broader impact across the region.”

Wohl’s first commitment to the Community First Fund will run its course in roughly a year. He’s already thinking about re-upping — he considers that a strong possibility — and might opt for a larger investment.

“I’ll decide that when the time comes,” he said. “Right now, I see no reason not to participate again.”

Weeks offered similar sentiments.

“I think this is something I may do again,” she told BusinessWest. “I didn’t give a whole lot the first time, but it was enough to make a difference, I hope, and I like that part about this.”


Bottom Line

Like everyone else who has secured a business loan, Baj now has some dueling emotions.

She’s elated that she received the money and is excited about what it means for her and her venture. At the same time, she’s naturally a little apprehensive about paying it back and taking the step forward needed to generate that revenue.

“We’re going to do some additional marketing and do whatever else we need to do to get where we want to be,” she said. “I’m not a grow-by-leaps-and-bounds person; it’s through small, steady steps — that’s how I want to run my business, because I never want to be too far ahead of what I can really handle. This is an exciting time for us.”

The Community First Fund was created to place more people in such a state, said Sikes, adding that he believes the program will continue to grow, gain momentum, and help write more entrepreneurial success stories.

That’s because, as he said, there are multiple winners in this scenario, including people like Weeks, who want to lend a helping hand — and a helping dollar.


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

Community Spotlight: Belchertown

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Community Spotlight Features
State School Project Tops Belchertown’s Priority List

Douglas Albertson

Douglas Albertson says redevelopment of the former Belchertown State School — and other highly visible projects — are lending momentum to the town’s growth.

With equal amounts of anticipation and relief, officials in this Hampshire County community talked about how redevelopment of the former Belchertown State School campus is finally underway — at least in a way that’s visible to passersby.

“We’re obviously excited about it,” said Town Planner Douglas Albertson with a touch of understatement in his voice. “We just approved a site plan for an assisted-living facility that will be built by the Grantham Group LLC in Marlborough.”

The development will include 83 units, and 40 of them will be affordable housing, he went on, adding that the town has a large senior population and the project will be particularly advantageous to older people who need a place to live but can’t afford market-rate rents.

The three-story structure, which will be known as Christopher Heights of Belchertown, is expected to cost $15 million. However, the Grantham Group has applied for $5 million in federal tax credits and another $2 million in state subsidies. Albertson said the developer is also seeking $250,000 in Community Preservation Act funds from the town, and the Board of Selectmen will vote on the request in May.

“Town officials, MassDevelopment, and BEDIC [Belchertown Economic Development & Industrial Corp.] have all worked hard to facilitate this project,” he told BusinessWest, adding that MassDevelopment is in charge of overseeing the cleanup of the former state-school property.

The Grantham Group was chosen to build the senior-living facility from among three entities that responded after MassDevelopment issued a request of interest for the site.

“They’re known for their assisted-living communities, and ever since the school closed, residents have said they would like to see one built on the land there, so we are thrilled that this is happening,” Albertson said. “It has great potential to enhance the community.”

He said the Grantham Group has developed dozens of assisted-living facilities, including the $13.4 million Christopher Heights of Northampton, which is situated in the Village Hill neighborhood on the grounds of the old Northampton State Hospital.

Although the property has been vacant for decades, several studies have been conducted to determine options for its reuse. Albertson said the last one was completed in 2009, thanks to $100,000 the town received from the state after the campus was designated as a priority development site.

At that time, Belchertown officials hired RKG Associates to assess the land, buildings, and layout of the 85-acre campus. When they finished, Fuss and O’Neill, a civil and environmental engineering consulting firm, created a conceptual use plan based on RKG’s findings. The work was done in association with the Massachusetts Development Finance Agency, and although they came up with two uses for the property, mixed-use development was seen as the most viable option.

“Our strength is that we are a residential community,” Albertson said, adding that the report stressed that any new residential housing should be targeted to fill gaps in Belchertown’s existing housing inventory, which includes housing for seniors.

The report also concluded that the western end of the property was the most suitable location for residential housing, and advised a gradual transition to mixed-use buildings, then to businesses on the eastern end of the campus near the railroad.

“We’re still using their concept in our work with MassDevelopment,” Albertson said, adding the state agency is developing a master plan for the property.

The report also found the town had enough infrastructure to support dense development on the campus, and Albertson told BusinessWest that Belchertown officials have kept the property in mind over the years as they upgraded and expanded sewer and water distribution lines.

“Provisions have been made to accommodate expansion in that sector of town,” he said, adding that, after the buildings are razed to make way for the new assisted-living complex, the town will seek to bond up to $1.2 million for road construction and utilities over a period of several years.

For this, the latest installment in its Community Spotlight series, BusinessWest looks at developments in Belchertown and how the state school project is expected to create momentum on several levels.

School of Thought

Belchertown State School for the Feeble Minded opened in 1922, had a storied history, and was closed in 1992 due to multiple lawsuits that cited inhumane conditions and poor treatment of patients. In 1999, the state turned the property over to the town, and the Board of Selectmen created the BEDIC to manage it and appointed a board of directors.

Although town officials did their best to secure the buildings, Albertson said, the structures have been vandalized over the years. And although a number of proposals were put forth for the site, none of them ever came to fruition.

However, that has finally changed, and the first signs of new life at the old state school could be seen last month when Springfield-based Associated Building Wreckers started working on the three acres where Christopher Heights will be built. The company removed asbestos and other hazardous materials from the area and will begin demolishing buildings in the section known as Pad I this month.

“The work is being paid for with state funding,” Albertson said, explaining that the Commonwealth has released $4 million of $10 million approved to conduct a comprehensive cleanup of the state school campus.

The town also instituted a special type of zoning for the site late last fall, and its Business Neighborhood Center District plan design will provide aesthetic consistency with the surrounding neighborhoods, while encouraging economic development. It will increase possible uses for the property, but site-plan approval by the Planning Board will be required for each development in the district.

“The one thing that was excluded is single-family housing because we didn’t want to compete with local builders who are finishing up subdivisions in town or hope to create new ones,” Albertson explained. “However, we do want to encourage housing for single people, seniors, and artists or artisans who want to create a studio and live and work in the same place. We would also like to have enough density so that people can patronize businesses on the property and work there.

“And now that the economy is improving, things are getting busy in other areas of Belchertown again,” he went on, adding that economic development has gained real momentum over the last year and many home-based businesses are also thriving. “It’s a hidden economy in Belchertown, and some of these businesses do expand.”

Belchertown has two new restaurants that are doing well, he went on. Oneis Almeida’s Café, which was built on an empty lot last summer near the state school campus on Routes 202 and 21, “has been a real success,” Albertson said.

Antonio’s Pizza by the Slice has also gained a following since it opened late last spring in its newest location on 31 Federal St.; others are in Amherst, Easthampton, Rhode Island, Texas, and Illinois.

“The owners saw an opportunity for a sit-down restaurant here,” Albertson said, adding that the location was home to Saporito’s Pizza before it was purchased in the early part of 2014. “The parking lot was packed immediately after they opened, and they have been busy ever since.”

Nelson’s Barber Shop also opened on the first floor of a house on North Main St. that had been a poorly maintained rental property for decades. “The neighbors are happy about it,” Albertson said, noting that the upper story is still a residential rental, but the entire ground floor is occupied by the business.

In addition, Belchertown’s first tattoo shop opened in February in the same strip mall as Antonio’s Pizza, and Surner Heating Co., which provides fuel and service throughout Hampshire County, is expanding its Belchertown facility.

“They’re adding propane and putting in two large underground tanks; the city recently approved the site work, which began several weeks ago,” Albertson said, adding that the property includes a building that houses a mini-mart, several apartments, and a gas station on Federal Street. “Their heating-oil storage tanks are also at that site, and they lease one to Noonan Oil; the business expansion reflects the fact that fewer people want to heat with oil. Propane is another option, and many people like to cook with it.”

Looking Ahead

Town and state officials hope Christopher Heights will spark renewed interest in the Belchertown State School property.

“The redevelopment of the campus has been a long-awaited project, and we’re excited about it. When it is done, we anticipate growth in surrounding areas; we believe it could be a catalyst for the whole area,” Albertson said. “The campus has always been pretty, but it hasn’t been maintained — but that is about to change.”

He cited a small plaza across the street from the property as an example of a site with room for growth. “The complex could be expanded. Plus, there are several other parcels available nearby,” the town planner said, adding that Easthampton Savings Bank opened a branch last year at the entrance to the grounds of the former state school.

Christopher Heights will support 65 construction jobs and create 40 permanent positions, and when the assisted-living community is complete, a long-neglected area in Belchertown will finally begin to realize its potential.

“We believe that, once the Grantham Group develops a portion of the site,” Albertson said, “it will give others the confidence to follow.”

Belchertown at a glance

Year Incorporated: 1761
Population: 14,735
Area: 52.64 square miles

County: Hampshire
Residential Tax Rate: $17.89
Commercial Tax Rate: $17.89
Median Household Income: $52,467
Family Household Income: $60,830
Type of government: Open Town Meeting; Board of Selectmen
Largest Employers: Belchertown High School; Super Stop & Shop; Cold Spring School

* Latest information available

Plain Speaking

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Toastmasters Feature600x200
Features
Toastmasters Helps Members Do More Than Talk the Talk

Toastmasters DPart0415aIn her role as a credit analyst for TD Bank, Alicia Raymond spends most all of her time crunching numbers and helping to gauge risk. She’s not often interacting with clients or making presentations.

But with an eye toward the future, she knows that, to advance into commercial lending and one day have her own portfolio of clients, she must build confidence and improve her communication skills.

And those are the primary reasons why, nine months ago, she joined he downtown Springfield chapter of Toastmasters International, an organization that, as the name implies, has 313,000 members in 14,650 clubs in 126 countries around the world.

“I never felt comfortable doing it,” said Raymond, using that collective to describe the broad range of what would be considered public speaking. “It was something I knew I needed to work on if I wanted to advance.”

She first entered the room — in this case, a donated conference room at Cambridge College’s downtown facility in Tower Square — with curiosity and trepidation (more of the latter, to be sure), but soon found the group the group to be laid back, and that put her at ease.

Still, she remembers being quite nervous for her first two-minute speech, on a topic she can’t even remember. That’s because there have been so many since, and in the process of giving them and participating in a host of other exercises, including the regular ‘Table Talk’ sessions, during which random topics are discussed, she has greatly expanded her comfort zone when it comes to speaking in front of other people.

Alicia Raymond

Alicia Raymond understood that she needed to gain confidence and improve her communication skills to advance, and has done both through Toastmasters.

Meanwhile, she’s gained critical feedback and can measure improvement in several ways — from her considerably more-relaxed state to a marked decrease in the number of times she says ‘um’ or ‘ah’ when speaking in general.

In all of these respects — from the reasons for joining to first impressions to the results — Raymond is very typical of the people who find Toastmasters and often stay with the organization for years, if not decades, said Shera Cohen, who certainly speaks from experience.

Indeed, she had those same sentiments, fears, and emotions when she first attended a Toastmasters meeting nearly three decades ago, and she’s watched hundreds of others experience them as well.

“I didn’t give a speech for nine months after I joined — I could have given birth in the time it took to finally give one,” said Cohen, who heads up In the Spotlight, a nonprofit group that promotes the arts, and also leads the Springfield Armory Alliance, another nonprofit. “I was nervous about being judged and that I would not be coherent at all, and that I would use all those filler words like ‘um’ or ‘ah’ or ‘er,’ and that I wouldn’t sound professional.”

She eventually overcame all that with the help of a good mentor within the club, started with a short speech, worked toward longer ones, garnered invaluable repetition, and improved continuously.

Shera Cohen

Shera Cohen says Toastmasters provides a positive environment where members can progress at their own pace.

That’s what the organization has helped thousands of people achieve worldwide, said Cohen, unofficial president and spokesperson for the downtown Springfield club. She told BusinessWest that, while common perception holds that Toastmasters will help members give speeches in front of 400 or 500 people, or, as the name implies, give a toast at a wedding (and it will do that), it is more focused on building confidence, making people more comfortable in a range of settings, and enabling participants to think on their feet — an important skill in many professions.

Membership has brought a number of benefits for Sharon Gates, who owns a franchise of Conference Direct and assists clients of all sizes with finding sites for meetings and conferences. In that role, she’s making presentations to business owners and making pitches to prospective new clients — skills she was looking to improve, and has.

“I would say the difference is substantial,” she said when comparing things before she found the Springfield chapter through a web search three years ago and now. “Before I arrived, there was a lack of confidence with public speaking, and the nerves took over. Now, I’m much more in control; the more you do something, the more comfortable you get.”

For this issue, BusinessWest talked with several members of the Springfield chapter about how Toastmasters has helped them overcome what is widely considered one of society’s greatest fears — public speaking is right up there with flying, death, heights, the dark, failure, rejection, and spiders — and gain needed self-confidence along the way.

Speaking Up

Ellen Freyman has been a practicing attorney for more than 30 years. She focuses primarily on real-estate and business law, which means she spends almost all her time at her desk or at the Registry of Deeds, rather than in the courtroom.

But when she’s not at work, she’s active with one of many groups she supports in various ways, including the Affiliated Chambers of Commerce of Greater Springfield, which she currently serves as board chairman.

When she took on that responsibility, she understood that it would place her behind the podium — not often, but enough. And not for major policy speeches, certainly, but for general remarks, such as welcoming an audience, introducing a speaker, or kicking off a program.

She knew she could do all those things, but also knew she wanted, and needed, to do them better, and especially without the prepared notes that made her remarks seem, well, scripted, which they were.

That’s the primary reason why, even though she’s probably less than a decade from retirement, she chose to join the Springfield chapter of Toastmasters, and why she’s going to make a strong commitment to improving her recent attendance at meetings; she wants to get better and become more comfortable behind a microphone, and when speaking in general.

“Every time I speak in front of people, I need to use a script, and I’d love to be able to be more extemporaneous,” she said, noting one specific goal. “Overall, I want to feel comfortable — and more confident — when I’m up there talking.”

This is a common theme among those who join Toastmasters, said Cohen, adding that the Springfield chapter is one of three public groups regionally — the others are in Northampton and East Longmeadow — along with several private chapters at MassMutual.

There is a one-time entry fee of $20, she said, adding that annual dues are $48, with that money going toward rent, advertising, manuals, and local, regional, national, and international competitions, among other expenses.

Membership in the downtown Springfield chapter is capped at 20, and it is around that number now, she said, adding that individuals join at all ages, represent a wide range of professions, and arrive with a singular goal of controlling and overcoming their fear of public speaking.

This is accomplished through a very structured format designed to ease people into speaking in front of others, she noted, adding that all meetings unfold in a similar fashion.

There are generally one or two formal speeches given each session, she said, adding that members progress through a series of speeches carefully outlined by Toastmasters International, starting with shorter ones and progressing to longer, more involved talks — and always at the member’s pace.

“We don’t rush people,” Cohen said, recalling her own hesitation with giving a speech. “When they’re ready, they’re ready.”

While some members give speeches, others handle a variety of other roles, including timing the speech, counting the ‘ums’ and related words, and providing feedback.

This last individual, the ‘designated evaluator,’ is coached to provide positive feedback, with the accent on positive, to help build confidence, not shatter it.

“Everything is done kindly — we start with something good to say, and we end with something good to say; we clap all the time,” Cohen explained, adding that feedback is offered to address everything from body language to the smoothness of the delivery, all with the goal of helping the speaker improve.

“We give the results at the end … some people might not want to know, but others want to know exactly how they did,” she said. “I say ‘so’ a lot, so I want to know how many time I say that word.

“People gradually get into it, and it really helps when there’s a mentor, whether a formal one or an informal one,” she went on. “Toastmasters encourage the experienced members to help the newbie; I had a mentor whom I didn’t ask for; he was a little tough on me. But it worked — he encouraged me.”

Each meeting also features a segment called Table Topics, which, as the name suggests, involves a topic — almost anything except politics or religion — discussed around the table.

People don’t know what the topic is until they hear it, said Cohen, adding that it could involve a current event, an upcoming holiday, asking someone to comment on their favorite vacation, or another topic that could generate a wide range of responses and encourage participants to think quickly.

“Some of the topics are really simple, like, ‘what are you going to do for Easter?’” she explained. “But the ones that ask you to think a little more are interesting; some of the answers are funny, and some are very serious.”

The Subject at Hand

These Table Talk sessions have been particularly helpful for Dave Malloy, client services manager for United Personnel in Springfield. In that role, he handles everything from client retention to improving the recruiting pool, and is often interacting with the many types of clients the company has.

Dave Malloy

Dave Malloy says Toastmasters has helped him most with extemporaneous speaking — getting him to think quickly on his feet.

Previously, he handled business development at National Ambulance in Springfield and worked for several manufacturers on the operations and logistics side of the business.

He’s been involved with Toastmasters since 2008, or roughly since he discovered that what he needed to improve his communication skills and ability to organize thoughts was repetition, something this organization provides in large quantities.

“What I first thought about Toastmasters was, ‘this will help me give presentations in public to 20 people, 50 people, or more — and that’s certainly something that someone can work on and polish,” he said. “But where it’s really helped for me is with Table Topics, which is more devoted to spontaneous speaking, or extemporaneous speaking, as opposed to having prepared comments.

“To me, that’s where I find more value, because it’s allowed me to be better in my work in terms of being more responsive to people,” he went on. “In the old days, when someone would come up to me at work and they’d have a question, I would feel like I’d have to go back to my desk, research things, and figure out what my answer is. Through Toastmasters, when someone asks me a question, I feel more comfortable, and I can draw from the knowledge I possess more readily, and I think that’s from practice.”

All that practice has made him a better, more valuable employee, he told BusinessWest, because he’s more efficient and can respond to people more quickly and effectively.

“That’s what comes from having to respond and comment on a topic when, a minute earlier, you didn’t know what that topic would be,” he continued. “It teaches you to think on your feet — and where else do you get the chance to practice that?”

Gates agreed, adding that, above all else, Toastmasters has provided her with needed self-confidence she’s gained through various speeches, but also from those spontaneous speaking exercises.

“I pushed myself to attend the meetings, number one, and when I attend, I do some speaking, whether it’s a short speech or Table Topics,” she explained. “And that really pushed me to get in front of an audience, get the feedback, and get the repetition, which has allowed me to be much more comfortable.

“So much so,” she went on, “that I recently gave a presentation to 200 people. I was a little nervous, of course, but it was fine. I was in control, where in the past, I would not have felt in control.”

Raymond can’t speak with as much experience, but she uses very similar language to describe how the group is helping her with a recognized need.

“I’m still nervous when I get up in front of people, but it’s a much more manageable level of nerves,” she explained. “I’ve become less reluctant to get in front of groups — I have the confidence that now I can do this, whereas before I started, when someone said, ‘we need someone to present for such and such,’ I would say, ‘pick someone else — not me, not me, not me!’”

Getting the Last Word

Malloy told BusinessWest that, although he’s been part of Toastmasters for eight years, he’s never considered his work with that group anywhere near done, because he needs to keep getting those reps he described as so valuable to his work and career.

“I will always need this. I know what the stats are — 98% of the public is afraid of speaking in public, or something like that; whatever it is, it’s a very large number,” he said. “I’m one of those people, and I’ll never not be one of those people. But what Toastmasters allows me to do is take this part of who I am and work on it.”

With that, he spoke for all those whose goal it is to speak more clearly and more effectively.

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

Community Spotlight: Northampton

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Community Spotlight Features
Northampton Expands Housing and Its Downtown

Mayor David Narkewicz

Mayor David Narkewicz says Northampton officials are planning a major redesign of Pulaski Park.

For more than three decades now, Northampton’s downtown has been the envy of cities and towns in this region and well outside it.

It is known for — and in many cases has won awards for — its cultural community, inventory of dining establishments, vitality, diversity, liveability, driveability (with bicycles), and sustainability. And moving forward, said Mayor David Narkewicz, the goal is to essentially make this city, well, even more of all of the above.

Indeed, plans are underway or on the drawing board for additional housing (especially in the ‘affordable’ category), traffic improvements, a wide range of developments on Pleasant Street (Route 5), long-awaited revitalization efforts involving Pulaski Park in the heart of downtown, new retail, and more.

“Northampton has won awards for its walkability and for having the best Main Street in America,” said the mayor. “And I’m excited about the progress being made and am very bullish about our city.”

The net effect of these many initiatives will be to effectively expand downtown, enable more people to live in it — thus providing more foot traffic for existing businesses and potential new ones — and make the city even more of a destination.

And that’s an important factor in the casino era set to begin in Massachusetts and especially the South End of Springfield, just 20 miles to the south, said the mayor, and also at a time when rail service will improve across the region, making Northampton that much more accessible.

Overall, Narkewicz says Northampton’s initiatives to expand its downtown, add more affordable housing, and make infrastructure improvements is a “winning strategy,” one that should enable it to withstand whatever threat the casino presents to its vitality.

“We need to focus on how to prepare and position ourselves so that we can remain a successful and viable downtown destination,” he said, adding that this is a multi-pronged initiative.

For this, the latest installment in BusinessWest’s Community Spotlight series, we take an in-depth look at the many developments underway or planned for Paradise City, and how they are expected to improve what is already considerable quality of life.

At Home with the Idea

Narkewicz said one of the few downsides to Northampton’s three-decade-long resurgence has been consistently high property values that have had the effect of pricing some people out of the city and its downtown.

Plans to increase the inventory of affordable housing will not only help remedy that situation, but they could also result in a more diverse population.

Two major housing projects that will feature affordable units and are in different stages of development are part of a broad initiative to expand and improve the Pleasant Street corridor.

HAPHousing Inc. is purchasing the Northampton Lodging House and plans to transform the multi-story building from single rooms into 72 units of housing, with half of them affordable or subsidized. The new apartments will be built on the upper stories of the building, and the first floor will contain 3,500 square feet of retail space, enough for two storefronts.

In addition, the Northampton Lumber Site, which sits perpendicular to the Northampton Lodging House, is under contract negotiations. Valley CDC is planning to purchase it and convert the property’s 70,000 square feet into 55 affordable housing units, each with one to three bedrooms.

“It’s a plus for our future to have new housing near state-transit-oriented development; these two projects are on a route served by the Pioneer Valley Transit Authority and within a five-minute walk to the Amtrak passenger rail station,” Narkewicz said, adding that the rerouted Amtrak Vermonter train service is operational, and although there are only two trains stopping in Northampton each day right now, ridership is strong and will continue to grow.

“There are also other benefits associated with an increase in downtown housing, including more customers for retail stores and restaurants. The housing will also allow people to be within walking distance to jobs, and the affordability factor is important,” he continued. “We take pride in trying to make sure that Northampton remains affordable to people on every rung of the income ladder.”

New housing options will also become available this year for elders when construction on Christopher Heights is complete. The senior housing facility is being built on the grounds of the former Northampton State Hospital, and half of the 86 assisted units will be affordable.

“It is part of a continuum to try to provide affordable housing for people of all ages,” the mayor said, adding that the Christopher Grantham Group which is building the facility, applied for and received housing tax credits from the state, which were boosted by $250,000 in Community Preservation Act funding from the city.

In addition to new housing options, other developments are planned for that area of the city. The state will begin construction on a major reconfiguration of the intersection of Route 5 and Conz Street, and the fork in the road that people encounter when they enter Northampton from the south will become a roundabout.

“This is one of our busiest intersections, and many businesses are centered around it, so this will help to make the traffic pattern more efficient and will be a more aesthetically pleasing gateway from the south,” Narkewicz said.

The vitality of the roadway was enhanced when the Fairfield Inn by Marriott opened late last year on Conz Street and added 108 new hotel rooms within walking distance to downtown, increasing the city’s hotel space to 300 rooms.

Art of the Matter

Northampton touts a new initiative called “Pleasant Futures,” which Narkewicz describes as a “community re-visioning process for Pleasant Street,” and a number of public meetings have been held to get input from residents in surrounding neighborhoods about what needs to be done to increase density and expand the downtown area in the neighborhood in a way that is pleasing to everyone.

It kicked off last May and is a collaborative effort between the Office of Planning and Sustainability and the Ward 3 Neighborhood Organization. “The concerns expressed in the meetings focused on pedestrian safety and vibrancy along the corridor,” Narkewicz said.

To that end, the city filed an application for a MassWorks grant to install new sidewalks, increase on-street parking, and create an attractive streetscape that would make the roadway more walkable. Traffic-mitigation funds from a new medical-marijuana dispensary soon to open on Conz Street will be used to help fund the planning process, and the mayor said Yes Computer renovated a building there a few years ago, while the owner of the shops across the street has renovated several storefronts.

“One of the advantages of interjecting more housing is that it pushes Pleasant Street to be more walkable and increases downtown’s vibrancy, which we are looking to expand,” said Economic Development Director Terry Masterson.

Change is also occurring in the heart of downtown. The Academy of Music, the oldest municipally owned theater in America, has increased its programming, and a major capital campaign kicked off in the fall of 2013 to install new seating, repair damage to the building’s ornate plaster from a leaky roof, and return the interior to its original colors.

“The city partnered with the Academy to improve the exterior and replace the roof,” Narkewicz said. “Most of the work was done last summer when the academy went black, and the city installed a new fire-escape system in the building at that time. The Academy is a major driver for tourism and brings 45,000 to 50,000 people to the city every year.”

He told BusinessWest that arts and culture play a major role in Northampton’s success, and venues like the Calvin Theater and Iron Horse Music Hall, events such as First Night and a monthly Arts Night Out, and retail stores that showcase the work of artists and artisans are part of the thriving arts fabric.

“A really exciting development in the same realm is also taking place on the other side of town,” Narkewicz said. “The Arts Trust has purchased the Universal Fitness Center, and through fund-raising and grants, they are turning it into an arts center with a black-box theater and space for artists to work in, which is important because Northampton’s success and the growth in property values and rents has made it difficult for artists to find affordable studios to work in.”

Park Place

Meanwhile, another major development is the broad effort to revitalize Pulaski Park.

It sits in the center of the city’s downtown, and a $2.4 million renovation and addition is being planned that will create more green, open space for residents and visitors to enjoy.

“We think the park will become a crown jewel in our already-excellent downtown,” said the mayor. “It sits between City Hall and the Academy of Music and hasn’t undergone a major renovation since 1976.”

Although upgrades had been considered in the past, cost played into the equation. But revamping the park recently became a viable option due to a change in state law that allows cities to use Community Preservation Act funds for existing parks, rather than just for new ones.

As a result, last year Northampton sought and received a $400,000 Parkland Acquisitions and Renovations (PARC) Grant to help fund the construction, as well as some initial design money from the City Council.

Stephen Stimson Associates was hired to create a plan for the park, and after holding a series of open meetings with residents to determine what they would like to see done, “they produced a breathtaking new design,” Narkewicz said. It is pending approval from the Community Preservation Committee, and, if it’s granted, construction will begin in June and continue through July 2017.

“Sustainability is part of the design, and it features a unique bioswale that will collect rainwater runoff and process it in an environmentally friendly way. The park will also have a new nature play area that will replace the existing, dated play structure. It will incorporate rocks, logs, and platforms and have a small slide,” the mayor said.

However, additional funds will be needed to complete the project, and the city is seeking $1,675,000 in the next round of PARC grants. About $200,000 of that funding would be used to comply with state PARC requirements to move utilities and communications lines underground.

Narkewicz said his office, the Department of Public Works, the Recreation Department, and the Office of Planning and Sustainability are all committed to identifying construction funding through a combination of local monies and state grant opportunities.

Bottom Line

For decades now, downtown Northampton has set the standard when it comes to vibrancy, diversity, and, as mentioned earlier, overall liveability.

Mayor Narkewicz and other city officials believe that the overall impact of the many initiatives underway will be to set the bar even higher. And, in doing so, they will give new meaning to that nickname Paradise City.

Northampton at a glance

Year Incorporated: 1884
Population: 28,495
Area: 35.75 square miles

County: Hampshire
Residential Tax Rate: $15.81
Commercial Tax Rate: $15.81
Median Household Income: $57,991 (2013)
Family Household Income: $81,680 (2013)
Type of government: Mayor; City Council
Largest Employers: Cooley Dickinson Hospital; Smith College; Veterans Administration Medical Clinic
* Latest information available

Community Spotlight: Lenox

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Community Spotlight Features
Lenox Aims to Become a Year-round Destination

Town Manager Christopher Ketchen

Town Manager Christopher Ketchen says winter recreation in Lenox includes snowshoeing and cross-country skiing.

On March 5, Yankee magazine named Lenox the “prettiest winter village in New England.”

The accolade was not only timely, but in perfect alignment with recent efforts by the town and the Chamber of Commerce to market Lenox as a year-round tourist destination.

“Although we are known for what happens here in the summer, we want people to realize there is a lot to see and do in Lenox 12 months a year, especially in terms of recreation and culture,” said Town Manager Christopher Ketchen.

Ralph Petillo agreed. “Lenox used to be perceived as a summer resort, but today it attracts people in every season, and the winter is the perfect time to come here, enjoy the beauty of nature, and regenerate the mind and body,” said the chamber’s executive director. “There is value in that, and this is a wonderful place to live, work, and play.

“Lenox has great cross-country skiing and snowshoeing in Kennedy Park and three downhill ski areas within a 20-minute drive,” he went on. “We’re also home to Canyon Ranch, and Travel and Leisure magazine ranked it as the number-one health spa in the nation. Bill Clinton went there five times last year.”

A second high-end resort that will add to the mix is in the approval process. The palatial, Gilded Age mansion known as Elm Court, which sits on almost 90 acres in Stockbridge with frontage in Lenox, was purchased for $9.8 million in 2012, and Travassa Destination Resorts & Spas, which runs high-end destination spas in Maui, Hawaii, and Austin, Texas, is hoping to transform it into an elaborate, upscale resort/spa with a restaurant.

In addition, plans are moving forward for a $15 to $20 million renovation of the historic, 29-acre Spring Lawn property, which will be become a 95-room, 14-building resort with a unique twist. “It will be open to the public, but will also offer memberships that will allow people to stay there at a reduced rate; the goal is to incentivize return customers and attract new clientele who like to visit the Berkshires, but don’t necessarily want a second home here,” said Gwen Miller, town planner and land use director.

The buildout of the property will occur in two phases. During phase one, the mansion will be turned into a 20-room inn with a restaurant, and the carriage house will be outfitted as a fitness center. Phase two, based on market demand, will include construction of a dozen low-rise buildings that will house an additional 75 hotel rooms.

“A number of older structures will be torn down, and the new buildings will be carefully sited,” Miller said. “The membership option will make it easier for people to come here, as they will know exactly where they will be staying. Spring Lawn is within walking distance to downtown and contains hiking trails and a skating pond with views of Stockbridge Bowl. The master planners really took the historic landscape design into consideration, and the views and trails on the property help make it a desirable location.”

The town is also being promoted by a number of popular venues offering a wide range of wedding packages. They include Blantyre (Castle), the Brook Farm Inn, and Chesapeake Inn of Lenox.

Recreational Opportunities

The Lenox Chamber of Commerce launched a phone app in late December. It is updated daily and lists restaurant specials, store sales, and things to see and do, as well as school closings and other town-related information. A number of businesses are also offering loyalty programs and promotions through the app, such as giving a 10th lunch free at a restaurant.

“We’re helping to shape the future by changing with it,” Petillo said, as he spoke about the new app. “People age 50 and under are much more tech-savvy than they were in the past, so we deemed it prudent to create this app, which we linked to Facebook and to our chamber website. It becomes a personal guide to what’s happening every day in Lenox and even has a section on weddings that lists the places that are available and the contact people, as well as a service directory with plumbers, electricians, doctors, lawyers, real-estate agents and other professionals.”

Keeping up with the times is important because the face of Lenox continues to evolve. Petillo said that, although it was once a summer getaway for the upper 2% of Americans, including the Vanderbilt and J.P. Morgan families, after Tanglewood opened 75 years ago and General Electric left Pittsfield, Lenox became the perfect place to establish year-round cottage industries.

“The number of tourist attractions here is growing, and last year Shakespeare and Co. extended its season,” Petillo told BusinessWest. “The Mount is now open eight months a year, and the National Museum of the Gilded Age and Ventford Hall Mansion and Gilded Age Museum are both open year-round.”

Special events are also staged to attract tourists, and the summer season will kick off with the town’s annual Memorial Day Races, which start and end at Tanglewood and include a marathon, half-marathon, 10k, and 5k, as well as a 15k trail race.

Last year, participants came from more than 25 states and nations, including Florida, California, Canada, the Philippines, and Brazil. “We look forward to having folks take part in this great event, especially since it helps raise money for Team Red, White and Blue, which supports veterans,” Ketchen said.

The town has also focused on promoting Kennedy Park, which contains 500 acres, is used by locals 12 months a year, and boasts several different entrances.

“It’s the recreational gem of the town and is located right in the center, off of Routes 7 and 20. It’s a five-minute walk from our downtown, which contains boutique shops and galleries and a plethora of restaurants, and it’s not uncommon to see mountain bikers stopping to get a coffee or something to eat,” Ketchen said. “But the park is also an ideal place to go snowshoeing, cross-country skiing, hiking, and horseback riding. People can rent skis and snowshoes at the Arcadian Shop, and horses at Berkshire Horseback and Undermountain Farm.”

Meanwhile, efforts are being made to revive the man-made Baker’s Pond, which sits in a remote area of the park. “It served as a water source for the cottage known as the Dormers during the Gilded Age and was acquired by the town years ago,” Ketchen said. “A number of trails go into that part of the park, but the pond has slowly filled in over time.”

Last fall, the town received a $100,000 grant from the state to restore the area, and plans were made to dredge the pond to remove invasive species, then refill it. Access to the trails is being improved, and Berkshire Community College is working with town officials to develop an environmental curriculum that will allow students to study the ecology around the pond.

“The town also hopes to eliminate hardy kiwi from around the pond. It is an invasive plant, and we are working with the Mass. Natural Heritage Endangered Species Program, under the Division of Fisheries and Wildlife, to do this,” Ketchen said, noting that Lenox is seeking a $15,000 state grant that would be matched by an equal amount from the city, if the Board of Selectmen votes to move forward with the project during its May 7 meeting. He added that Massachusetts Audubon’s Pleasant Valley Wildlife Sanctuary, which offers hiking on seven miles of trails, along with a number of other activities, is right around the corner from Kennedy Park, and has joined the effort to mitigate the impact of hardy kiwi on the properties.

Four-season Getaway

Petillo said Lenox was called “A Gem Among the Hills” in a Chamber publication in 1921, and he noted that the Church on the Hill at the entrance to Kennedy Park is the most-photographed church in New England.

Visitors can find its exact location as well as a lot more to see and do by downloading the new phone app, and Petillo believes the new technology tool, coupled with efforts to promote events taking place throughout the year, will help increase tourism.

“Our fall season has become as busy as the summer. Our Apple Squeeze and Harvest Festival features phenomenal food, artisans, and crafts, and celebrates life in Lenox. It’s Americana at its best,” he said. “And our annual Tub Parade marks the end of the summer, while re-enacting an event held in the Gilded Age. The men used to go hunting right before the cottages were closed for the summer, and while they were gone, the ladies would decorate small, horse-drawn carriages, then drive them through town when they returned.

“Lenox is steeped in history,” he went on, “and we are doing all we can to draw the tourist of today and tomorrow and let them know all that we have to offer.”

Lenox at a glance

Year Incorporated: 1767
Population: 5,077
Area: 21.7 square miles

County: Berkshire
Residential Tax Rate: $12.33
Commercial Tax Rate: $15.18
Median Household Income: $51,089
Family Household Income: $74,531
Government: Town Manager; Board of Selectmen
Largest Employers: B Mango and Bird; Cranwell Resort Spa and Golf; Guidewire Inc.; Boston Symphony Orchestra

* Latest information available

Community Spotlight: Chicopee

By
Community Spotlight Features
Chicopee Officials Take Balanced Path to Growth

From left, Mayor Richard Kos, Carl Dietz, and Lee Pouliet

From left, Mayor Richard Kos, Carl Dietz, and Lee Pouliet stand near the former Lyman Mill, which a developer plans to turn into 50 market-rate loft apartments.

Mayor Richard Kos is taking a multi-pronged approach to economic development in Chicopee.

Rather than focusing strictly on new initiatives, he and other city officials are taking steps to preserve and repair existing infrastructure, while preparing for the future.

“Balance is important. People like to see things that are different, but we also have to take care of what we have,” said Kos, citing a wide variety of projects that will help revitalize the downtown area, promote pride in home ownership, and pave the way for ambitious undertakings on sites once used for military housing, as well as the former Facemate and Uniroyal properties.

Since Kos took office for the second time 14 months ago, one-third of the senior management staff has changed, and new ideas are being generated. “Some positions were vacant, and some became open through attrition and retirement,” he said. “We brought in some new talent, and the people on board are continuing the work that has been done with fresh eyes, new ideas, and skill sets in a seamless manner.”

The effort includes making full use of City Hall and the auditorium on the third floor, which has been closed for years and is now being renovated. The graceful room contains beautiful stained-glass windows, two balconies, and architectural details difficult to replicate today, and Kos hopes that, when repairs to the crumbling plaster are complete, it can be used to televise all meetings of city officials as well as school events and other city functions. “We want to make sure everything we do is accessible to the public; that type of transparency is really good for the city,” he said, explaining that the telecasts will be also be put on the city’s website so people who do not have cable TV subscriptions can view them.

Through a partnership with Mass IT, Chicopee has also become one of the first cities in the state to offer free wi-fi service downtown. “We’re calling it Chi-Fi; it’s an initiative designed to bring people downtown,” Kos said.

Others include more public parking, and last month the Munich Haus restaurant purchased the former, long-abandoned Ferris parking lot on Center Street with help from the city, which included $150,000 in block-grant funding.

“They will make 15 of the 50 parking spaces public and will also create five new full-time positions,” said Carl Dietz, the city’s building commissioner and director of community development.

The city also purchased and demolished an abandoned, multi-family home on Front Street, and the lot will be used to create dozens of additional parking spaces.

Although Kos said a plan to convert the former Cabotville Mill into new housing units is not likely to happen, a developer is pursuing the purchase of the former Lyman Mill property on lower Front Street. “It’s very exciting, as he plans to turn it into 50 market rate, loft-style apartments.”

Lee Pouliot agreed. “The apartments will be built in a way that will allow people to work and live in them,” said the city’s acting planning director.

In addition, an innovative owner-occupied, multi-family grant program will kick off this month in Chicopee Center, Chicopee Falls, and Willimansett to help make properties in those neighborhoods more marketable.

“The city worked with Polish National Credit Union and Chicopee Savings on the program, and we will provide entitlements of up to $16,000 to help people purchase homes,” Kos said, noting that buyers must live in them and will receive $1,000 each year for up to 16 years if they remain in the homes. “We believe this will improve the quality of life; landlords who live in a property they own are more likely to keep it clean and hold tenants responsible for their behavior than absentee landlords,” Kos said, adding that he believes well-maintained homes and pride in ownership are far more effective in improving neighborhoods than additional police patrols and efforts to enforce compliance codes.

Another new project is about to begin in Aldenville. “Wells Fargo foreclosed on a very small, single-family home on 42 Grace St. and offered the city $10,000 to use toward its redevelopment,” Pouliot said. “We expect to demolish it and have students from Chicopee Comprehensive High School build a new home on the site.”

Restoring Vitality

Memorial Drive has been a busy commercial strip for decades, and it continues to add vibrancy. Ground will be broken this spring for a new PetSmart store at Chicopee Crossing that will create 50 new jobs. But even though the 3.7-mile corridor is flourishing, Kos said it is not being ignored.

“Memorial Drive is our major commercial area, and although it continues to grow, we want to see if there are ways to make it better,” the mayor told BusinessWest.

So, last fall, the city contracted with UMass and a group of students in the Architecture and Regional Planning master’s program who called themselves Hill House Planners, to undertake a study of the roadway. They divided it into three sections and examined traffic flow, the vacancy rate, potential redevelopment strategies, and how much space is available for green infrastructure, along with zoning conflict resolution in areas where commercial property abuts residential property.

The study was completed in December, and suggestions include reducing the speed limit, adding new signage and multiple roundabouts, creating a bicycle path (which would be of particular benefit to residents on the South Hadley end of the corridor), and installing new sidewalks on both sides of the street that would improve access to shopping and commercial properties.

Kos said the results of the study are helpful and under consideration. “It’s one more area where we are looking for new ideas,” he told BusinessWest, explaining that the undertaking is in line with his plan to maintain and improve things that work, while addressing problem properties and issues.

The old library building, which has become an eyesore in the city’s center since it was vacated in 2003 when a new library was built, is one of those problem areas. The City Council allocated funding to remove a significant amount of asbestos and lead paint in the interior, and EDM Achitecture has been chosen to examine possibilities for reuse. “It’s just part of what we are doing to remove impediments to progress through preparation,” Kos said.

Progress is also being made on a plan to convert the former Chapin School, located between Meadow and Chicopee streets, into 40 apartments for homeless veterans through the Soldier On program.

“The school has been vacant and unused for 12 years, and this will be great for the neighborhood, as the veterans in the program have a history of taking great pride in their homes,” Dietz said.

In addition, interest in the former Facemate site and the Chicopee River Business Park, located just off Route 291, has escalated over the past year, officials said.

“In the last six or eight months, new companies have leased space both inside and outside of the park, and we are anticipating an active spring,” said Dietz, adding that, in the next few months, the city will put out a request for proposals to redevelop about five acres of land next to the new, $8.2 million RiverMills Center on West Main Street, which was constructed after former Facemate factory buildings were demolished and hazardous waste was removed from the property.

Westover Air Reserve Base has always played a prominent role in the city, and Kos said a plan created to expand its use through partnerships will help it thrive, which is especially important in light of the budgetary cuts the government has been making at military installations across the country.

“The state has allocated $5 million to UMass to lease and transform a vacant building on the base into a National Aeronautics, Research, Development and Training Center, and private investments around or on Westover will also provide jobs,” Kos said, speculating that, at some point, an aviation training program could be established at Chicopee Comprehensive High School that would contribute to jobs within that industry.

Dietz added that Westover Metropolitan Airport Development Corp. is playing an important role in the joint effort to ensure that Westover remains open. The corporation oversees the airport as well as four industrial parks built on land vacated by the military.

“They are partnering with the base to make things more efficient so they can play a larger role in the aircraft-maintenance business,” he said. “As the private side grows, the military is able to reduce its costs.”

The corporation also hopes to develop an unused, 100-acre site near the airport which could attract new businesses related to the aeronautics industry.

Kos said the state has also given the city $1 million to help demolish antiquated Navy housing off of James Street on a 26-acre plot, which Chicopee acquired at no cost in 2011. The plan is to build a 4-megawatt solar farm on the property, leveraging the state grant with an additional $1 million from city coffers.

“The electricity that will be generated should save Westover $100,000 each year and will also save our residents money,” Kos said. “Plus, Westover will receive $900,000 from the state’s military bond bill to do energy-infrastructure work that will make it more efficient.”

Changes are also being made to other properties throughout the city. “We are completing $250,000 in improvements to Wisnowski Park, and the wading pool is being turned into a splash pool, and the City Council appropriated $185,000 to fix structural problems in the administration building on the former Uniroyal-Facemate property,” Pouliet said.

Future Possibilities

The city will continue to seek ways to redevelop unutilized properties, and Kos said officials from the Roman Catholic Diocese of Springfield told him they will consider building a new regional Catholic high school on the former Uniroyal factory site.

“Our city is strong; we have maintained our savings, our growth, and the services we offer, and a lot of our initiatives have received wholehearted support from the City Council and our legislative delegation,” said the mayor. “Chicopee is fortunate to have four representatives and three senators, led by Rep. Joe Wagner, as they have played a monumental role in our success.”

The mayor and other officials have high hopes for downtown and view it as an ideal location for new restaurants and businesses related to the healthcare industry.

“People come from all over Western Mass. to go to the Herbarium for holistic care, and the Munich Haus and Collegian Court have been real successes,” said Kos. “So, we believe the work that will be done on Interstate 91 for the casino will provide an opportunity for new restaurants in a spot with plenty of free parking that lends itself to future growth.”

During his recent State of the City address, he said the last year has been fruitful, but credited it to a team effort. “When I took office, I promised to work to make the city better. And I’m pleased to report that, together, we are doing that.”

Chicopee at a glance

Year Incorporated: 1848
Population: 55,717 (2013)

Area: 23.9 square miles

County: Hampden
Residential Tax Rate: $17.54
Commercial Tax Rate: $31.67
Median Household Income: $46,708 (2010)
Family Household Income: $57,760 (2010)
Type of government: Mayor; City Council
Largest Employers: Westover Air Reserve Base; City of Chicopee: ; J. Polep Distribution Services; Turbo Care Inc.
Latest information available

Honoring the Difference Makers

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Features

BizDiffMakrsLOGO2011

Seventh Annual Gala Set for March 19 at the Log Cabin

The big night is almost upon us.

That would be March 19, of course, and the annual Difference Makers gala, an event that has become a not-to-be-missed networking opportunity and, much more importantly, an opportunity to celebrate groups and individuals who are making a difference in Western Mass.

The tradition began in 2009 with the first class of Difference Makers, which featured a diverse group that showed the many ways one can make a positive impact. It included Bill Ward, director of the regional Employment Board of Hampden County; Susan Jaye Kaplan, founder of GoFIT and co-founder of Link to Libraries; the Young Professional Society of Greater Springfield; and PeoplesBank President Doug Bowen and Kate Kane, managing director of the Springfield office of Northwestern Mutual, both of whom have donated countless hours to area nonprofits and economic-development-related agencies.

Each successive class has had both its own unique character and a common bond with all the others — individuals, groups, or companies who have stepped up and used their talents, energy, and imagination to improve quality of life in this region.

The class of 2015 HERE carries on that legacy. This year’s honorees are:


• Katelynn’s Ride: The K-Ride, as organizers call it, was created in 2011 to honor the memory of Katelynn Battista, who lost her courageous battle to leukemia at age 11. The event raises money for both Baystate Children’s Hospital and the Dana Farber Cancer Institute through the Jimmy Fund. Locally, some of the funds awarded to Baystate have gone to support a new position, a nurse practitioner who acts as a liaison between the families of cancer patients and the teams of specialists that provide needed care.

• MassMutual: The financial-services giant is being honored not simply for the depth of its philanthropy or community involvement, but the strategic nature of such endeavors. Focused in three areas — education, economic development, and ‘community vitality,’ the company’s many contributions are long-term in focus with the goal of strengthening the community and building a quality workforce.

• Judy Matt, president of the Spirit of Springfield: For more than three decades, Matt has been at the forefront of coordinating family-focused events for the residents of Springfield and surrounding communities. That list includes Fourth of July fireworks, the annual pancake breakfast (once touted as the world’s largest), the Big Balloon Parade, and Bright Nights, the holiday lighting display that is on many national lists of must-see attractions.

• The new ownership team of the Student Prince and the Fort: Last summer, Rudy Scherff, second-generation co-owner of the Springfield-based institution known as the Student Prince and the Fort, announced that, if new ownership could not found, the iconic restaurant and tavern would likely close amid falling profits and rising costs. Into the breach stepped a somewhat unlikely group — Peter Picknelly, owner of Peter Pan Bus Lines; the Yee family, owners of the Hu Ke Lau in Chicopee and other restaurants; and Kevin and Michael Vann, father-and-son consultants who have worked with a number of restaurateurs over the years.

• Valley Venture Mentors: Through a host of initiatives ranging from monthly mentoring sessions to shared-workspace initiatives, to a new accelerator program which just welcomed its first cohort of 30 companies, VVM is, according to many observers, making real progress in creating an entrepreneurial renaissance in Springfield and the region as a whole.

The March 19 event will feature butlered hors d’oeuvres, lavish food stations, a networking hour, introductions of the Difference Makers, and remarks from the honorees. Tickets are $60 per person, with reserved tables of 10 available.

For more information or to order tickets, call (413) 781-8600, ext. 100, or go HERE.

A Real Kick Start

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Features
WNEU Students Tackle Crowd-funding Project for Russian Robotics Firm

discuss online marketing

From left, John Garvey, Harlan Spotts, Mark Manolakis, Matt O’Connor, and Dan Koval discuss online marketing.

John Garvey is in the business of making connections, which is how a small team of marketing students at Western New England University wound up launching an online fund-raising campaign for a small, Russian robotics firm.

“I work pro bono as a mentor with an organization called MassChallenge,” said Garvey, president of marketing agency Garvey Communication Associates, referring to the Boston-based startup accelerator program. “They contacted me and asked if I’d be interested in working with a variety of Russian startups.”

The one that interested him was a company called xTurion, led by CEO Sergey Kolyubin, which had developed an intriguing, multi-faceted home-security system that roves around the house like a Roomba.

“They were looking for digital marketing help,” Garvey said, and that brought to mind two people: Dan Koval, a Great Barrington-based marketer and inventor, who has some experience with online fund-raising campaigns through the crowd-funding site Kickstarter, and Harlan Spotts, a professor of Marketing in the College of Business at Western New England University, who is always looking for educational, real-world projects for his students.

“Harlan is a long-time friend of mine,” Garvey said, “so I thought it would be a neat project to get him together with the Russian startup to work on a Kickstarter campaign.”

Dan Koval

Dan Koval offered his expertise with marketing and crowd funding to the xTurion/WNEU project.

Spotts and two students in a class called Marketing Seminar — Mark Manolakis and Matt O’Connor — recently met with Koval to pick his brain on developing such a campaign, and the pitch is expected to go live in April.

But back up a moment — what, exactly, is Kickstarter? And why is crowd funding the latest buzzword in digital marketing and fund-raising?

“In the past, entrepreneurs with ideas for businesses relied on venture capital or raised seed funding from friends and family,” writes Amanda Barbara in Forbes. “Crowd funding offers an advantage traditional methods don’t by providing validation as well as money. A successful campaign shows that there’s a market for what you offer. Getting additional funding is easier once an idea is proven viable.”

Crowd-funding sites like Kickstarter, Indiegogo, and other, smaller entities essentially generate funds from the public to complete projects, from books, music, and movies to high-tech gadgets. Kickstarter is especially strong with cutting-edge inventions, Barbara notes. In return for their support, donors are offered rewards depending on their level of giving. The catch? The beneficiary sets a monetary goal and a time deadline; if the goal isn’t reached, no money is collected.

Kickstarter alone boasts that 8 million people have visited the site to back a project, while 284,000 people have backed 10 or more enterprises. In other words, crowd funding has reached the big time in the world of startups.

“In years past, crowd funding as a means of financing a business was a novelty, a rare exception to the traditional methods of bank loans, venture capital, and borrowing money,” writes Nicole Fallon, assistant editor of Business News Daily. “Today, announcing your crowd-funding campaign is just as common as any of these other options, if not more so.”

Spotts and his students, as well as the innovators at xTurion, hope to ride that wave to a successful campaign — and perhaps the next big thing in home security.

Keeping Watch

The xTurion robot features multiple sensors to detect flames and smoke, burglars, water leakages, and environmental factors, like the home’s temperature, humidity, and air quality. Homeowners can access the data ­— and camera images — remotely through their smartphones, which also helps separate genuine threats from false alarms.

“It’s a global home security system, and they chose us to market it,” Manolakism said. “It’s shaped like a dome, moves around the house, and is linked to your cell phone.”

He added that it’s a more effective system than the iCam Pro, another Kickstarter-aided home-security product, because it can move from room to room along a pre-programmed route.

“It’s a little robot that lives around the house; it’s basically a home-security system all in one,” O’Connor added. “It has tons of features — fire monitors, temperature sensors, all the environmental controls. And it runs all on wi-fi; you can have up to five users logged into it at once, with an app that goes with it. If it detects something, it calls you, then keeps calling down the line to whoever is logged in.

“And we’re marketing it,” he added. “Specifically, we have to figure out the best way to do a Kickstarter campaign. We just have to make sure the campaign is up and running by mid-April.”

The team is considering a goal of $150,000, which would allow xTurion to manufacture and start selling the product — hopefully by the end of 2015 — and generating enough profit to become self-sustaining, which is, of course, the goal of any crowd-funding campaign.

Koval was impressed. “The home-security industry is looking for new technology,” he said. Not that he’s a stranger to marketing intriguing products online.

“I always wanted to start a business,” said Koval, who studied marketing at UMass. But an opportunity with General Electric — which eventually saw him stationed in London and other European locales — proved irresistible, and he put his business dreams on hold for awhile. “Finally I quit and went to business school. That’s when you realize how little you really know about business.”

After his first Internet business “bombed,” Koval had an odd product idea around 2002 — a cuckoo clock with a cow replacing the bird. Convinced the MooCoo clock could be a hit, he set about finding someone to manufacture the product and then sold it through online retail channels. “It took off like crazy,” he said, and eventually expanded to other animals. “I didn’t get rich, but I bought a house and made a nice living. I sold maybe a little less than a million of those.”

From the giftware business, he moved on to something more serious. A chance conversation with a hotel-room attendant educated him about the risk of back, neck, and carpal-tunnel injuries associated with that job. “Considering how many occupational injuries there are, and how much it costs hotels to lose these people, and the cost to the workers themselves in quality of life, there was a huge incentive here for companies to reduce these injuries.”

Eventually, he developed the Duop mop, which uses a telescopic handle and a ball-and-socket mechanism to allow users to clean from ceiling to floor without too much bending and straining.

“We found that a lot of room attendants don’t use any mops; they just get down on the floor, on their hands and knees, and clean the floor,” he said, noting that the Duop eliminates the need to put that kind of strain on the body.

“So I’m in the mop business now,” he laughed, although he’s also staying active on Kickstarter by helping a friend launch a campaign for crafty housewares, in particular a candle in the shape of a cat; as the wax melts, it gradually reveals a metallic cat skeleton. “At first, I thought, ‘that’s ridiculous. Who would want something like that?’”

But the designer won him over. “We chose Kickstarter because they do a lot of design projects. I felt like the Kickstarter audience was most aligned to burning cats.”

Catch All

That’s the world of crowd funding — it’s a welcoming environment for a wide variety of products and artistic creations, and it’s hard to tell which ideas will, well, catch fire.

Among his initial advice to Spotts, Koval suggested hiring a professional videographer to shoot video of the device in action, and also to create a fund-raising goal that will get the product off the ground, but not much else. “You don’t want too much slack in there at all; you don’t try to get rich off Kickstarter.”

Rather, he noted, it’s a place to get started — a goal that applies equally to home-security robots, cat candles, or next-generation mops. n

Joseph Bednar can be reached at [email protected]

Community Spotlight: Amherst

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Community Spotlight Features
In Amherst, Public, Private Investments Bear Fruit

John Musante

John Musante says development projects that include incubator space bode well for the town’s future.

Town Manager John Musante says a plan to position downtown Amherst as a center for innovation is gaining momentum.

“One of the keys is to make it an attractive place where people can live, play, and start and grow a business,” he told BusinessWest, adding that the town is doing all it can to redevelop its downtown and strengthen its relationships with UMass Amherst, Amherst College, and Hampshire College.

A recently released report from the 24-member Town Gown Steering Committee, titled “The UMass/Town of Amherst Housing and Economic Development Plan,” outlines strategies, interventions, and recommendations to enhance the overall desirability and affordability of living and working in Amherst. The report is based on an analysis conducted by consultant U3 Advisors that cites the need for an increase in quality housing for UMass students, faculty, and staff that will lead to a stable balance and strengthen neighborhoods, as well as an expansion of the tax base, which could be achieved by encouraging entrepreneurial and research endeavors and targeting opportunities to support the business sector.

The special committee formed by UMass Amherst and the town of Amherst to address the common housing and economic-development opportunities delivered its final recommendations only two months ago. But a number of significant public and private investments over the past year have already led to change that will help bring the plan to fruition.

“Overall, 2014 was a breakthrough year for Amherst,” Musante said, citing examples of how public funding and private investment have worked together to pave a pathway to success.

Last October, the town was awarded a $1.5 million MassWorks Economic Development Grant to bury the utility lines in the north end of its downtown, which will allow investors maximum use of any available property.

Meanwhile, Archipelago Investments LLC in Amherst has become a major player in that neighborhood and has ambitious plans to build two major, mixed-use, LEED-certified buildings there. The first is a five-story structure called Kendrick Place, which is under construction on a vacant lot on the corner of Triangle and East Pleasant streets across from Kendrick Park.

The ground floor will contain commercial space and a café, while the upper stories will house 36 luxury apartments with floor-to-ceiling glass, white-oak hardwood floors, stainless-steel appliances, and views of UMass and Amherst College. “We are tremendously excited about Kendrick Place,” Musante said.

The project is expected to be complete in August and is the second of its kind in Amherst by developers Kyle Wilson and David Williams, who invested $4 million into Boltwood Place, which opened in 2012 in the back of Judie’s Restaurant, featuring 12 loft apartments in a LEED-certified, award-winning, mixed-use building with 650 square feet of retail space on the ground floor.

Two months ago, Archipelago received approval from the planning board to build a third mixed-use, five-story building called One East Pleasant near Kendrick Place, on the site of the old Carriage Shops, which have been deteriorating for some time.

Plans call for demolition of the 52-year-old structure originally built as a motel before it was converted into shops in the 1970s, along with two additional buildings that house the Loose Goose Cafe and the law offices of Seewald, Jankowski & Spencer.

One East Pleasant will contain commercial and retail space on the ground floor and about 80 apartments on the upper stories. “The permits for the building have been approved. There is one ongoing appeal which will result in a short delay, but the goal is to have it built and occupied by 2017,” Musante said.

Both Kendrick Place and One East Pleasant will contain incubator and maker space on their ground floors.

“It’s an exciting component, and the developer is working with the town, the university, and the Business Improvement District to attract research and development spinoffs,” Musante said, adding that the report generated by the Town Gown Steering Committee shows UMass spent $194 million on research in FY 2013, and although 24 patents and 21 license and option agreements were issued, little of this potential was realized locally. Reasons cited include Amherst’s lack of space for startups, along with a lack of community among those that do exist.

Musante believes having incubator space close to the UMass campus in buildings where people can also live and play has real potential for the town, and free wi-fi and Internet service available downtown will also help to position it as an innovation district.

Sarah la Cour agreed. “Combining business and social space will make it easier for spinoffs coming out of the university,” said the executive director of the BID, as she explained that the business community is doing its part to promote downtown as a walkable, livable center.

Variety of Undertakings

The town adopted an innovative master plan in 2010, and Musante said one of its primary focuses is to concentrate on development downtown and in the village centers of North Amherst, East Amherst, Pomeroy, and Atkins Corner. “The plan contains an anti-sprawl, smart-growth strategy.”

La Cour concurred, saying this is important because the town wants to preserve its farmland.

“We want to balance and protect our natural resources while creating more density downtown and in our village centers, and the types of projects envisioned in the Town Gown report follow the same principles as the master plan,” she noted. “And we are seeing that vision begin to take shape. Things have really moved forward in the last year or two, and since zoning was passed in 2012 to increase density downtown, we’ve seen private investment that will create incredible opportunities for an innovation district on the doorstep of the Commonwealth’s flagship campus.”

Private investment is also occurring in North Amherst, and W.D. Cowls Kamins and Jones Group Realtors have been seeking partners to build what they are calling the ‘Mill District’ in a one-block radius on the commercially zoned 10-acre former sawmill and Trolley Depot site in hopes that it will become a center for arts and entertainment.

Developer Cinda Jones built and opened the Trolley Barn there in December. It contains retail space on the ground floor and four large apartments above.

“The commercial space is completely occupied, and a salon and breakfast place in the Trolley Barn have become part of the village,” Musante said. “Jones Library has a branch in the Mill District, and there is a recreation area within walking distance. As a result, more and more people are becoming excited about its potential as a gathering place for families and young people.”

He added that Atkins Farm Market plans to open a satellite location in the former Cow Barn there this summer after it finishes renovating the formerly vacant structure. “There are also other opportunities available within the footprint.”

But ultimately, Amherst is a college town, he continued. In addition to UMass, it is also home to Amherst College and Hampshire College, and Musante said they are all making investments in the future, which include the two new science buildings UMass has put up over the past five years. “There has been a lot of positive momentum under the leadership of Chancellor Kumble Subbaswamy, and the university has been working collaboratively with the town,” he said. “Amherst College, which sits at the edge of town, has also been active in the BID and is an incredibly ambitious partner. They are planning to build a $200 million state-of-the-art science center and have some residential housing under construction.”

In addition, Hampshire College President Jonathan Lash is an internationally recognized expert on practical solutions to global sustainability, climate change, and development challenges. “He has really been positioning the college as a leader in environmental education and sustainability,” Musante said.

Hampshire’s R.W. Kern Center, which is under construction, is one of only a handful of buildings in the country that meet the rigorous requirements of the Living Building Challenge. “Jonathan is re-imaging the campus, and this will become the portal building,” said Musante, noting that it will house the admissions office.

The 50-year-old Hitchcock Center for the Environment in Amherst is also active in town and is in the middle of a capital campaign to build a new facility on the Hampshire College campus, which will be another Living Building.

Solid Ground

Musante said the development projects that were a dream when the master plan was created five years ago are beginning to be realized.

“Two studies completed in 2013-14 show pent-up demand for housing, and the new projects by Archipelago Investments will meet that demand,” he told BusinessWest. “Kendrick Place will become the gateway to our downtown, and we are expecting a wide range of tenants: college and university faculty and staff members, young retirees, and some students. We are a college town, so having more residential units in the center is key to strengthening the entire BID, as it will increase foot traffic downtown.”

The Town Gown Steering Committee recommended creating a University-Town of Amherst Collaborative to continue their combined efforts, and also suggested the town would benefit from hiring an economic-development director.

Musante said he and Subbaswamy will announce the next steps they will take in the weeks ahead, and he included funds to pay for an economic-development director in his budget recommendation.

“We are working to build relationships and strengthen our partnerships and have all the permitting processes we need to bring great concepts and ideas to reality,” Musante said in conclusion. “Amherst and its downtown are really on the way to becoming an innovation hub. We plan to leverage the research and development spinoffs from UMass, and we have a road map for the town to reach its full potential. The momentum here is palpable; it’s a tremendously exciting time.”

Amherst at a glance

Year Incorporated: 1759
Population: 37,819 (2010)

Area: 27.8 square miles

County: Hampshire

Residential Tax Rate: $20.54
Commercial Tax Rate: $20.54
Median Household Income: $53,191
Family Household Income: $96,733
Type of government: Select Board, Town Meeting
Largest Employers: UMass Amherst; Amherst College; Delivery Express; Hampshire College
* Latest information available

Boston Wrong

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Features
Author, Economist Andrew Zimbalist Says Olympics Are a Bad Deal

OlympicsAuthorAndrew Zimbalist shakes his head at the prospect of the Summer Olympics coming to Boston in 2024. While the U.S. Olympic Committee paints a rosy picture of gleaming new construction, increased tourism, and long-term economic growth, Zimbalist argues that Olympic host cities almost never see these benefits.

As one of the world’s foremost sports economists, he should know. In fact, the Smith College professor of Economics recently published a book, Circus Maximus, on this very topic.

“In theory, the Olympics aren’t bad,” Zimbalist told BusinessWest. “In practice, there’s virtually no evidence that the city benefits. There may be some short-term benefit if everything goes well, in terms of volunteerism, pride, and togetherness. People feel good for a couple of months, then that fades away.”

“But,” he continued, “is it worth $5, $10, $15 billion to have that experience? The city ends up getting saddled with debt, and many times saddled with stadiums that are underutilized. Because of the cost to build and maintain them, we call them white elephants. And the presumed benefits of increased tourism, increased trade, and increased foreign investment are now borne out empirically; these things don’t increase over the trajectory they were already on.”

In short, if your city is chosen to host the Olympics, it probably didn’t need an image boost to begin with. And it certainly doesn’t need the debt. For a return of some $5 billion or $6 billion, the cost of staging the Summer Olympics were an estimated $16 billion in Athens in 2004, $40 billion in Beijing in 2008, and nearly $20 billion in London in 2012 — much of this investment tied up in infrastructure projects that may not be useful going forward.

Zimbalist argues that the Olympics are sold to the public as an economic boon when it’s just the opposite, a catalyst for tourism when evidence suggests it’s not.

“Whether it’s congestion, terrorism, or other fears, not one of these things necessarily makes people want to come to your city and trade with your city,” he said. “Even when the Olympics are pulled off well, are there really people around the world who haven’t heard of Boston and say, ‘hey, let’s travel to Boston’? Probably a few. It’s fair to say there are some feel-good benefits, but they’re very evanescent, very ephemeral. And for the economy, the benefits are illusory.”

Frankly, he continued, the Olympics are an opportunity for special interests to line their pockets at the long-term expense of the host city and the public. In a broad, candid interview with BusinessWest, he explained several reasons why the bidding and organizing structure encourages that outcome, and why the system isn’t likely to change anytime soon.

The Price Isn’t Right

If the bidding process were rational, Zimbalist argues, local organizing committees would understand how much their city stands to gain, and then cap their bids below that level.

The problem is that local committees are dominated by private business interests — contractors, construction unions, architects, investment bankers, and lawyers, to name a few — which individually stand to gain from the massive construction required by the International Olympic Committee (IOC).

“Boston 2024 is a committee of private executives, largely from the construction industry. Some other industries are represented as well, but construction benefits more than any other industry,” he explained, adding that the construction contracts to be handed out are essentially “other people’s money.”

“Some of it comes from the Olympic Games, some from taxpayers, some from corporate sponsors, but it’s not their money. And they’re going to get the contracts; why wouldn’t they love the Olympics? They get to do all this massive construction in a relatively short period of time. Meanwhile, a lot of contracts get rushed and get charged higher costs than normal.”

The model suffers from what economists call a “principal/agent problem,” Zimbalist explained. The city (the principal) is not properly represented by the local organizing committee (the agent). So the more extravagant the bid, the more the committee members personally benefit, and they don’t think about (or care about) the public benefit versus the public cost — hence, the massive overbidding.

In his latest book, Andrew Zimbalist

In his latest book, Andrew Zimbalist makes the case that the Olympics saddles host cities with debt while bringing few long-term benefits.

“The most problematic aspect about the structure is that you have one organizer, the International Olympic Committee, that, in essence, auctions the right to host the Olympic Games. You have multiple cities around the world competing against each other and one monopoly seller,” he said.

“That situation almost always ends up with an overzealous overcommitment for extra funding, extravagance, and frills. Imagine six or seven cities all wanting to get this; five cities think it’s worth $4 billion, but one city thinks it’s worth $5 billion. That city is the outlier, the one that can’t agree with everyone else, and they’re the ones that end up winning.”

Will Boston approach its bid differently? Not if it wants to win, Zimbalist said.

“We keep hearing about how frugal and bare-bones Boston is going to be. They’re going to be building, they say, an Olympic stadium with a 60,000-seat capacity that doesn’t have any luxury boxes, club seats, or catering facilities, among other things. And when the games are over, they’ll take it apart.

“Other than the fact that, in my mind, it makes no sense to spend $500 million on a stadium that exists for 17 days,” he continued, “the problem is, Boston’s going to be competing against cities like Paris, Rome, either Berlin or Hamburg, Melbourne, Doha (capital of Qatar), and Johannesburg, and they’re not all going to put forward bare-bones plans. At the end of the day, the IOC will take the plan that most honors them and their traditions, and that’s going to be the most extravagant plan.”

In short, he said, “meeting the committee’s demands for infrastructure and facilities makes it impossible economically to get a reasonable return. That’s the most difficult thing Boston or any other city has to overcome.”

Tourist Trap

But what about the long-term gains a city might realize in increased tourism? It’s an attractive idea, Zimbalist said, but the publicity generated by the Games themselves is not guaranteed to be positive. Just ask the organizers of Olympics plagued by disorganization (London, Sochi), pollution (Beijing), corruption (Salt Lake City, Nagano), or terrorism (Atlanta).

“The publicity you get is not necessarily good publicity,” he went on. “Mexico didn’t get good publicity when they had to kill 2,000 students demonstrating, or when the African-American athletes raised their fists on the medal stands to protest race relations in the States. Munich didn’t get good publicity when 11 Israeli athletes were killed by terrorists. Montreal didn’t get good publicity when budget overruns were nine times over the initial bid price.”

Even during the Games, evidence suggests that the influx of Olympic tourism is offset by locals moving away for three weeks and tourists who would otherwise visit the city staying away as well. “In the short run, a lot of tourists decide they don’t want to deal with the high prices, congestion, and security issues, and tourism goes down in net terms.”

The best way to promote tourism is word of mouth, and that doesn’t translate to the Olympics, he added.

“Normally, when a tourist goes to Boston, he goes home and talks to friends and relatives: ‘Boston was great! We went to the Boston Garden, we saw the U.S.S. Constitution, we visited the Museum of Fine Arts, we heard the symphony’ … on and on. And people say to themselves, ‘hey, I want to go to Boston, too.’ But an Olympic tourist goes home and says, ‘I saw a terrific 50-meter dash, really exciting hurdles, a great relay.’ That’s not going to promote tourism in Boston. You lose the word-of-mouth effect.”

Zimbalist admits there have been exceptions. Barcelona, which staged the Summer Games in 1992, is often held up as a model for the Olympics bringing long-term benefits to the host city.

However, “Barcelona was a complicated story with many elements to it,” he explained. “Barcelona and Catalonia had been neglected regions for many years. When Franco died in 1975, the people of Barcelona said, ‘we’ve got to rebuild our city.’” That effort involved razing a warehouse district that separated downtown from the sea and a series of other development initiatives, all underway long before the Olympic bid.

“When they won the games, they had been building anyway. They started with a vision and an actual plan to change their city, and they folded the Olympics into that,” Zimbalist said. “They reversed the usual order, where there is no coherent plan, and the IOC tells you it needs 33 venues, and you contort your city to fit their plan.

“Barcelona was a gem of a city, largely undiscovered, with spectacular architecture, interesting culture, good climate, and a great location,” he said. “It was a city waiting to happen, and the Olympics gave it the spark.”

The Case for Reform

Boston, Zimbalist argues, does not need that spark, and neither do most countries bidding for the Games. In fact, the money they will spend over decades for that 17-day extravaganza would be better invested in needed infrastructure improvements, reduced rates from the national airline to boost tourism, multiplied trade missions, and a host of other efforts with tangible, long-term benefits.

Barcelona ran up a $6 billion debt to host the 1992 Summer Games, but the resulting image boost and surge in tourism continues to this day. Still, he said, the city is an outlier among all the other recent hosts still saddled with debt and rusting hulks of unused metal that once housed two weeks of sporting events.

Critics have floated ideas to reform the bid system — for example, choose a handful of rotating sites around the globe with permanent venues, which would dramatically reduce infrastructure costs.

“You could do a continental rotation system,” Zimbalist explained. “Every four years, a different continent would be the host, and the continent could choose one venue. It would ensure you wouldn’t have to rebuild the Olympic stadium. I think that makes a lot of sense. But the cities not chosen would say that’s not fair.”

Meanwhile, the IOC is starting to feel the heat for its debt-generating ways in the form of caution from potential host cities, particularly in the lower-profile Winter Games. Cities such as Oslo, Stockholm, Munich, and Davos all bailed out of 2022 bids, leaving only Beijing and Almaty, Kazakhstan currently in the running.

“Both are autocratic countries, and neither is ideal for hosting,” he said. “The extravagance, the gigantism, the grandiosity has gone so far that cities have started becoming leery about bidding.”

Will the International Olympic Committee change its ways? Zimbalist doesn’t think so.

“The IOC is reportedly making the case for other cities to bid,” he said. “They’re trying to gin up interest in the Olympics again so they can resume their traditional competitive bidding and extravagance.”

In other words, business as usual. Boston has been warned.

Joseph Bednar can be reached at [email protected]

Community Spotlight: Greenfield

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Community Spotlight Features
Greenfield Crafts Detailed Road Map for the Future

Mayor William Martin

Mayor William Martin says a new rail platform will help Greenfield attract residents and allow businesses in Springfield to draw from a larger pool of employees.

‘Independence.’

That’s a word Mayor William Martin uses frequently, and a goal he has set for Greenfield that the city is well on its way to achieving, in his estimation.

“Synonyms are ‘sustainability’ or ‘resiliency,’ and that is where we have focused our economic-development efforts,” he said. “We want Greenfield and its residents to become as independent as possible.”

To that end, an important initiative kicked off last month when Greenfield Light and Power began operating as a municipal aggregation plan to provide electricity. The town gained final approval and certification for the plan from the Department of Public Utilities in October.

Greenfield has a contract with Peregrine Energy Group to develop the innovative initiative, which will not only bring lower-cost electricity to the community, but includes measures to procure it from renewable sources.

“Our price is fixed and is about .0125 per kilowatt hour,” Martin said, adding that the variable rate from Western Mass. Electric was about .014 per kilowatt hour at the time of the interview. “Although it may not seem like much of a difference, it adds up when you factor in millions of kilowatt hours,” he explained.

The mayor said it’s important for the town to be able to offer competitive pricing because reports from the U.S. Small Business Bureau show small businesses account for 60% to 80% of the jobs in the U.S., and the top obstacle they face in New England and Massachusetts is the cost of electricity.

“We want to continue to help existing companies in Greenfield expand as well as facilitate and accommodate the Yankee ingenuity and entrepreneurial spirit of businesses that are an idea in someone’s garage,” said Martin as he outlined steps taken over the past three years to bring the municipal aggregation plan to fruition.

Greenfield Light and Power also plays into Greenfield’s commitment to a green economy and environment, because power purchased will be generated from renewable energy sources.

“We were the first city in the state to be designated as a green community,” Martin said. “We worked hard for this and can only get better. We already have a 2.5-megawatt solar farm and can create new solar and hydroelectric projects. We will eventually produce all of the electricity that we need and move it into our aggregation plan.”

The successful establishment of the municipal aggregation plan, coupled with the Green Communities Act of 2008, which gave municipalities the opportunity to seek independent telephone and Internet service, laid the groundwork for a telecommunications or (fiber-optics) light plant also designed to further Greenfield’s independence.

“I want us to have our own Internet provider and phone company,” Martin told BusinessWest, noting that he conceived the idea three years ago.

Steps to establish what’s known as Greenfield TelNet were enhanced in 2012-13 when the Mass Broadband Institute laid seven miles of fiber-optic line in the town as part of a project to increase broadband access to communities along Interstate 91 (more on that later).

Other projects designed to make Greenfield a more attractive place to live, work, and own a business include the town’s new, handicapped-accessible rail platform located behind the John W. Olver Transit Center. It was completed in December, and in addition to stops by Amtrak on its reconfigured Vermonter line, commuter rail service has been proposed that would run between Springfield and Greenfield four times a day, with stops in Holyoke and Northampton as well as Springfield.

Martin said a state transportation-funding bill passed last year includes $30 million to acquire and retrofit older MBTA commuter-rail locomotives for the line.

He hopes the new rail service will entice people to live in Greenfield and commute to jobs in Springfield, or travel to the town from Vermont, park there, and use the train to get to work. “People hired for the MGM casino could avoid congestion on I-91. Plus, it will give businesses in Springfield options to hire people out of the immediate job pool,” he said.

Net Gains and Concrete Results

Martin’s telecommunications proposal received approval from the Town Council two years in a row, and the town is waiting to get the legislative approval necessary to hold a special election for voters on April 14. Martin hopes the approval will come through and residents will approve Greenfield TelNet at that time.

However, steps have already been taken in an effort to shrink the time frame to implement service while following the process. The town partnered with Holyoke Gas and Electric to ultilize its fiber-optics network to create voice over IP telephone service and also contracted with Crocker Communications to install and maintain it. As a result, the phone service was changed over to VoIP in Town Hall several weeks ago, which Martin said will save about $158,000 a year. After wrinkles are worked out in the system, the town’s schools will also be outfitted with the new phone system.

“The next step will be Internet access, and we hope to develop strong partners to provide and service it for the city and for our residents and businesses at a future date, which could result in a huge cost savings for everyone. We want to guarantee the future use of fiber optics and make sure that bandwidth is not reserved for those who can afford higher rates,” Martin said. “Our plan includes installing wireless Internet access downtown in the future, which would be free to housing authorities. It would also guarantee the existence of Greenfield Community Television, and the possibilities would be unlimited.”

However, he added that the town is in discussions with Comcast to renew its contract, because it wants to leave all its options open.

Meanwhile, Martin said Greenfield has a number of other significant projects underway to spur economic growth. Construction of a new, $66 million Greenfield High School is expected to be complete in August, and the new $60 million Franklin County Courthouse is slated to be finished in two years.

“There is also a lot of private investment taking place,” the mayor told BusinessWest, noting that the owner of the block downtown that houses Wilson’s department store is putting together a proposal for a hotel and banquet hall that would occupy the upper stories of the building over the store and include new construction on the Chapman Street side of the property, which abuts a parking lot.

It would recreate the 19th-century hotel that once existed there, Martin said. “It served the bustling economic activity in the area, and was supported by industry and businesses. We haven’t seen the proposal yet, but a new boutique hotel would be important, as it would give people a place to stay overnight and would be another asset to our downtown.”

Patriot Care, a licensed and experienced medical-marijuana company, is also nearing the permitting phase for rehabilitating a historic building on the western part of Main Street.

“The $1 million project is expected to begin in the spring,” Martin said. “We are focusing on rehabilitating buildings from the early 1900s of Greenfield’s heyday.”

He added that the state has accepted a proposal to conduct a feasibility study for a new library, the school administration office is moving from Davis Street to Main Street, and the public safety commission has selected a site and formed a committee to move forward on a new public-safety complex that would house the fire and police departments.

In addition, “the Ford Toyota dealership on Main Street is building two new showrooms behind its present structure, which will separate the brands and showcase them in larger, more modern facilities. In addition, a new $2.5 million Cumberland Farms on Federal Street will be finished in a few weeks, and there is a proposal for a new Dunkin’ Donuts and Sunoco Convenience Store on Federal Street, which is the second-largest commercial area in the city.”

Baystate Franklin Medical Center is also adding a new, $23 million surgical wing to the hospital, which is expected to be open next year. In addition, Baystate purchased the former Holy Trinity School and convent across the street and has plans to demolish them and erect a medical professional building on the property.

Another project that has ties to the city’s history involves the Wiley and Russell Dam. It was scheduled to be demolished years ago, but the town requested that the Department of Conservation and Recreation Office of Dam Safety conduct a new review last November. As a result, it has been reclassified from a significant-hazard-potential dam to a low-hazard-potential dam, which means a failure would not be likely to result in any loss of life or significant damage to property.

The dam, which has a V-shaped waterfall just upstream of the Meridian Street Bridge, does need some repair. But in addition to making plans for that work, Greenfield officials are exploring the possibility of constructing a fish passage at the site with the U.S. Fish & Wildlife Service and the Massachusetts Division of Marine Fisheries.

Martin said the dam speaks to the town’s history, and in the 1800s, two businesses existed at its base, which include a company whose genesis led to the development of Kennemetal Inc.

Last July, that firm announced plans to expand its Greenfield operation with a $5 million investment in infrastructure, new equipment, and machinery. The expansion will result in 50 new jobs, which will be added over the next five years. Martin said the company’s decision to invest in the town is particularly significant because Greenfield was pitted against a site in South Carolina that Kennemetal considered after it closed its factory in Vermont.

Argotech is another Greenfield business that employs skilled workers and has plans to expand. “The company is based in our industrial park and is investing $20 million over the next 10 years in new equipment,” the mayor said.

He explained that the city is working with Greenfield Community College, Franklin County Technical School, and the Regional Employment Board to make sure both of these companies will have access to a pool of people trained in the specific job skills required in their industries.

“We talked about this and about our utility plan during our pitch to Kennemetal, and told them what we could provide in terms of training and power savings,” Martin said. “It’s the type of accommodation and collaboration we facilitate to help large businesses move to Greenfield or expand here.”

The town has also taken over a 100-year-property on an 11-acre site on Federal Street, and put out a request for proposals to redevelop 75,000 square feet of former factory space in a commercial condominium on the site obtained in December through the Bankruptcy Court. Greenfield also purchased the undeveloped half of the property from the court, which contains three playing fields on 6.62 acres the city had been leasing for $1 a year from Lunt Silversmiths.

“The entire property has been rezoned,” Martin said.

He added that Greenfield’s location and affordable housing also make it an attractive place to live and work. “We are the junction between Routes 2 and I-91 and have been known as The Crossroads since the Village of Deerfield was established,” he said. “Businesses are expanding here and are coming to Greenfield because they see it as a safe investment. We have shown that we can maintain a stable tax base of $1.36 million, and we are very competitive when it comes to the cost of electricity.”

Secure Future

Martin believes the measures that Greenfield is taking to become independent will bear fruit and make the town more resilient.

“Some people are guessing that the future will be different. But we guess we will be prepared for whatever it holds; we’ll have as many options as possible,” he told BusinessWest.

And that’s a solid blueprint for a sustainable economy.

Greenfield at a glance

Year Incorporated: 1753
Population: 17,456 (2010)

Area: 21.89 square miles

County: Franklin

Residential Tax Rate: $22.51
Commercial Tax Rate: $22.51
Median Household Income: $33,110 (2010)
Family Household Income: $46,412 (2010)
Type of government: Mayor; Town Council
Largest Employers: Baystate Franklin Medical Center; Town of Greenfield; Greenfield Community College

* Latest information available

Less Speechifying and More Conversation

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Features
A Simple, Effective Guide to Public Speaking by Business Owners

By DAVE RATNER

Dave Ratner

Dave Ratner

As a longtime business owner in Western Mass., where I run Dave’s Soda and Pet City, I often find myself crisscrossing the country and traveling throughout New England and the Northeast to meet with prospective retailers, distributors, and fellow executives. In those encounters, colleagues may also ask me to perform the one thing almost every person fears and nearly every individual will avoid doing: speak before a live audience.

The anxiety is intense, as you walk on stage and step behind the rostrum, initially blinded by the spotlight and frightened by the silence of hundreds or thousands of invited guests, all of them expecting you to put them at ease, while you speak flawlessly, entertain effortlessly, and inspire listeners with your soaring rhetoric.

And therein lies a serious misconception about the role of a business owner as a public speaker: your job is not to be an orator, summoning the eloquence of John F. Kennedy or Ronald Reagan or Barack Obama; your mission is to be a storyteller, someone who has a conversation with the audience and creates a bond with them.

Put another way, speechifying — the attempt to be a grandiose communicator of presidential caliber, or the effort to emulate the impassioned pleas of a famous coach or general — is a surefire way to fail at public speaking … and a guaranteed means of never delivering another set of prepared remarks.

I write these words from experience; in my role as a member of the Retail Advertising and Marketing Assoc. board of directors, I represent independent retailers alongside vice presidents of marketing for Home Depot, Walgreens, and Target.

All of which means, through a great deal of practice and a desire to make myself feel more comfortable speaking in public, I now know that the best way to connect with an audience is to (surprise!) be yourself by speaking as yourself.

The following tips are a good guide to finding — and honing — your own voice and confidence as a public speaker.

Speak with the Audience, Not to the Ages 

A large part of the fear factor is the result of my earlier comment about the unreasonable demands a speaker imposes upon himself or herself. 

When I encourage people to know themselves — and to know the respective groups they plan to speak with — I want them to do just that: to discover a mutual interest, a shared worldview, or a general sense of identity, which a speaker can use to capture (and maintain) an audience’s attention.

Resist the temptation to pound the dais and punch or chop the air, as if you are the commander in chief; do not try to do the work of a team of White House speechwriters, punctuating your address with a call to posterity, a summons to greatness, or an order to preserve the republic.

Even if you succeed in doing so — rather, if you mistakenly believe you have succeeded in channeling your inner Winston Churchill or Martin Luther King Jr. — your audience will likely consider you pompous and more than a little ridiculous.

To reiterate: be yourself.

Anecdotes Make the Story

I follow this rule with absolute devotion because experience has taught me that it helps tremendously to have an anecdote — one that you can adorn with humor, or adjust according to the mood of your audience — that is part of a larger story.

For example, when I explain how sending a handwritten note to a major executive, in lieu of drafting a conventional e-mail expressing my appreciation for having met that person, culminated in that individual calling me and thanking me, I not only have a good anecdote, I have a lesson about life, business, and communications.

Search for your own anecdotes — you do have them — and make them flexible enough to fit the spirit of your official topic of discussion.

Conversation Is the Art of Speaking

I return to where I began, emphasizing the value of conversation over speechifying. 

A conversation is the true art of speaking.  It is formal while feeling respectfully informal; it is accessible yet invaluable, an intimacy available only to those assembled before you; it is a dialogue billed as a monologue; it is real because its intended response elicits smiles and cheers and laughter and standing ovations.

It is the cure for ending the paralysis and fear of public speaking.


Dave Ratner is the founder of Dave’s Soda and Pet City. He is also a member of the Retail Advertising and Marketing Assoc. Board of Directors, representing independent retailers; daveratner.com.

Fueling Speculation

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Features
Will Falling Gas Prices Be Good for Business?

The downward trend in fuel prices has delighted consumers, but businesses have mixed thoughts when assessing the long-term impact.

The downward trend in fuel prices has delighted consumers, but businesses have mixed thoughts when assessing the long-term impact.

In 2008, as gas prices hit $4 per gallon, the blame game heated up as well, with Congress berating oil-company CEOs for profiteering during an economic slowdown, and the execs sniping at Congress for restricting drilling and refining at home, contributing to a dependence on oil-rich but often-unfriendly foreign governments.

Caught in the middle of that exchange were average Americans, who — already buffeted by an economic crash that bled jobs and drained retirement portfolios — increasingly found themselves diverting money from other household needs in order to fill up the gas tank.

At the same time, businesses of all kinds were forced to make tough decisions, from retail stores pondering whether to pass hefty shipping surcharges to customers, to construction firms seeing profits shrink as the cost of fuel and supplies far outstripped what they had anticipated during the bid process.

Now that gas prices have reversed course and plummeted, even dipping below $2 for regular at many stations in Massachusetts, one would expect those trends to be reversed, giving businesses some reprieve from six years of sky-high rates.

Not so fast.

“What I’ve found funny is that a lot of our paper suppliers — paper companies and different media outlets that make deliveries here — put on a gas surcharge,” said Steve Lang, president of Curry Printing in West Springfield. “But it never seems to come off. When we’re dealing with UPS, they’ll add their little surcharge in there for high gas prices, but it doesn’t come off when the prices come down.”

In fact, some analysts say the plunge in global oil prices will eventually affect small businesses in negative ways. Expected cutbacks and layoffs in the oil industry could be felt in related industries, such as the housing market in areas where petroleum companies operate, as well as restaurants and retailers that rely on oil-industry workers as their customers, Rohit Arora, CEO and co-founder of Biz2Credit, wrote in Inc.

“Lower oil and gasoline prices have many, many benefits for consumers and will likely help vitalize auto-industry sales and the spending of newly found disposable income,” he noted. “This is good news for small-business owners, of course. However, prices that are too low could eventually have serious negative implications longer-term.”

In short, while consumers are pleased with more money in their pockets, the impact on businesses of all kinds remains mixed, and uncertain.

Food for Thought

Retail businesses are anticipating that more disposable income will trickle down as increased sales. But so far, that hasn’t happened at Big Y, said Claire D’Amour, the chain’s vice president for corporate communications.

“Right now, it’s hard to tell, I think,” she told BusinessWest. “Low gas prices means there’s more disposable income, more cash in people’s wallets, but whether that’s translated into opportunities for higher sales, well, we haven’t seen anything specifically pointing to that this year.”

In reality, she noted, “after 2007, people changed their shopping patterns; they became more thrifty. With more money in their wallets now, will we see that change? We did have robust sales for the holiday season, which we’re happy about. But is that a reflection of gas prices? It’s hard to be sure.”

In fact, consumers aren’t seeing lower prices at food stores, for reasons that extend far beyond the retail sector. According to the U.S. Department of Agriculture, recent food-production challenges include a cattle herd that’s been much smaller than normal, which affects beef prices, and poor weather in the West that has hindered certain crops. High wheat production, on the other hand, has kept cereal and bread pricing relatively stable.

Still, the U.S. Department of Labor reports that the Consumer Price Index (CPI) for all items rose just 0.8% over the past 12 months, the second-lowest rise in the past 50 years, exceeded only by 2008, the year financial markets — and the economy in general — spun into crisis. The 2014 CPI has much to do with energy costs, which fell 10.6% over the year, with gasoline falling 21%.

The drop is due mainly to the highest global oil production since 1989, but industry analysts differ when it comes to how long this period might last.

“Most of us in the industry are surprised that it’s fallen as hard and fast as it has,” Ryan Lance, CEO of ConocoPhillips, said at a meeting of the Center for Strategic and International Studies. “I don’t know that I have a real good answer to that question, other than it doesn’t feel like the fundamentals would support that kind of fall.”

Instead, Lance predicts oil prices will rebound faster than anticipated, as they did in 2009, on the heels of the Great Recession. “People were worried about the global economy, and prices went to $30, $40 a barrel, and just a matter of months later, it was back to $100 a barrel,” he said. “And that’s the kind of volatility we’re in.”

After a strong holiday season, Big Y executives are unsure how gas prices will affect consumer behavior heading into 2015.

After a strong holiday season, Big Y executives are unsure how gas prices will affect consumer behavior heading into 2015.

On the other hand, Larry Zimpleman, chairman and CEO of Principal Financial Group, told the Wall Street Journal that he predicts the era of relatively tight supplies controlled by OPEC, and resulting high energy prices, to be coming to an end.

The reasons why are numerous, including continuing sluggish growth in both emerging and developed economies, reducing the demand for oil; new technologies, such as fracking, making previously shuttered oil fields productive once again, increasing the volume of oil coming onto the market; and continued incremental improvement in alternative sources of energy, like wind and solar. “Thus,” he said, “I think pressure is likely to remain on oil prices for an extended period.”

That’s good news for general contractors, said Craig Sweitzer, president of Craig Sweitzer & Co., a construction firm in Monson with seven employees.

“It’s absolutely huge,” said Sweitzer, who has seven gas-powered vehicles in his fleet. “We’re lucky, because we decided to upgrade and give everyone a truck last year, which we’d never done before. Add in insurance and taxes and fuel, and it was a huge windfall to have gas prices go down. We drive big trucks that consume a lot of fuel; it’s a very big part of our expenses.”

He noted that some contruction-related industries — like road pavers, which use oil in their asphalt products — have clauses built into their contracts that protect against sudden increases in fuel prices, “but we’re the little guys, and people don’t typically do that with us. The airlines, for instance, pre-buy on their contracts, but we’re completely prey to the market.”

Moving On Down

The drop in energy prices is equally welcome at other businesses that use a lot of gas, like commercial movers.

“In our case, there are two parts to our company,” said Rod Sitterly, president of Sitterly Moving & Storage in Springfield. “One would be local household and commercial moving. Gas prices have very little effect there because everything is local; the truck sits there for five hours, then goes two miles to its destination. So, for the local household and local commercial jobs, there’s very little effect. Some moving companies were charging a fuel surcharge for those moves, but we never did.

“The long-distance moves, that’s a totally different story,” he continued. “Obviously, fuel is a bigger segment of the cost. The major movers, the major van lines — we’re with Atlas, for example — for the moment, they have an 8% fuel surcharge that has been as high as 14%, so there has been a significant decline in that.”

He noted that this environment stems from the days when industry rates were regulated by the Interstate Commerce Commission, and companies were allowed to tag on fuel surcharges to reflect rising gas prices.

“Since deregulation, you can charge whatever you want, and over time, a lot of charges have gone away — but the fuel surcharge never did,” Sitterly said. “For long-distance moving, obviously it has a big effect. Even people moving themselves to Florida or someplace long-distances often don’t consider how much they’ll pay to get to their new location.”

Big Y, with more than 50 stores across the region, saw its fuel surcharges on produce trucked from California and other distant locales increase by $1 million in just six months in 2008, when oil prices shot up. While those fees are not an issue right now, D’Amour said, the company is not yet benefiting in other ways one might expect now that energy prices have fallen.

“In terms of our utilities, a lot of utility rates get locked in, so they’re not fluctuating,” she said, adding that the chain has also seen little decrease in production costs — say, for canned goods — passed down to retailers. “We’re not seeing reductions, but there’s a huge lag time.”

As for how less-expensive gas might change customer spending habits, she reiterated that Big Y, like other businesses, are still waiting for positive signs.

“There were lots of lessons learned from 2008 in terms of how people buy — ­whether they might splurge here or there [with extra cash] or pay off another credit card. Right now, it’s hard to tell.”

For others, like Sweitzer, the benefits are clear and immediate — and come with a political upside.

“Now that America is one of the largest oil producers, you feel good buying gas; it’s a win-win economically and culturally,” he told BusinessWest. “Everyone feels it. I’m sure a lot of people had a better Christmas because of the extra money in their pockets.”

Joseph Bednar can be reached at [email protected]

Community Spotlight: Pittsfield

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Community Spotlight Features
Spirit of Innovation Is Taking Hold in Pittsfield

Mayor Dan Bianchi

Mayor Dan Bianchi says the new Berkshire Innovation Center will be a boon to local businesses and will draw attention to the western part of the state.

The city of Pittsfield has a new project in the planning stages that Mayor Daniel Bianchi calls “amazing.”

It is the Berkshire Innovation Center, which is so innovative that it qualified for funding from a $1 billion investment the Commonwealth is making in projects that further the life sciences.

“We’ve been working with the Massachusetts Life Sciences Center in Boston on this for the last few years,” Bianchi said, adding that when he heard about the state’s plan to invest in the field, he thought about how Pittsfield could become part of it.

His initial idea was to build an incubator that would draw entrepreneurs from the Boston area to Pittsfield, which is home to many small, applied materials and plastics companies that make products such as sutures and suturing equipment.

But when it became clear that this concept was not feasible, a new plan was formulated that led to a $9.7 million capital grant from the Life Sciences Center to build the Innovation Center in the William Stanley Business Park on the grounds of the former General Electric complex that dominated this city’s business community for decades.

The new, non-profit facility will enable shared research between local companies and educational institutions; early-stage production and commercialization of products; and workforce training at the site.

Bianchi said officials toured Rensselaer Poly-technic Institute and Hudson Valley Community College’s new science centers, which have been very successful, to help them formulate the plan.

Local manufacturing companies, including General Dynamics, SABIC and Crane & Co., as well as regional educational institutions such as the State University of New York’s College of Nanoscience, MassMEDIC, the UMass campuses in Amherst and Lowell, Berkshire Community College, McCann Technical School, and Massachusetts College of Liberal Arts have already expressed interest in becoming affiliated with the center. 

“We’ve received more than 20 letters of interest,” said Bianchi, adding that the center will give local companies access to training and advanced technology, including a clean room, 3-D prototype printers, and laboratories with reverse engineering capabilities that will allow them to make new products or improve existing ones. “There are some pretty creative companies in this area, but in order to grow they need this type of facility. A company making complex compounds will be able to work with researchers at UMass Lowell as well as at the Nanotechnology Center in Albany.”

The center will also contain incubator space for entrepreneurs. “It will be unique, and people at the Life Sciences Center are really excited about it,” the mayor said, noting that the facility will be sustainable and generate income through tiered memberships, usage and rental fees on equipment, training, and sponsorships from regional companies.

Ground will be broken this winter, and Bianchi said that if meaningful relationships can be created, it will mean “great things for local companies.”

Meanwhile, other forms of economic development are taking place in this former mill city, everything from new investments in the community’s burgeoning downtown, to more steps to bolster an already thriving creative economy,

For this, the latest chapter in its Community Spotlight series, BusinessWest talked at length with Mayor Bianchi about what’s next for the largest city in Berkshire County.

Downtown Transformation

Among the many new developments in Pittsfield is a boutique hotel taking shape within a building on 273 North St. that dates back to the 19th century. The 68,000-square foot, $14 million project will include 42 unique rooms, three conference areas, an atrium with a skylight, a bar, a revolving door, and a marquee sign with “Hotel” spelled out in lights over the entrance.

“They’re keeping the old windows as well as the 8-by-8 posts in the building, and no two rooms will be the same,” said Bianchi in a voice brimming with anticipation. “It’s very exciting because Berkshire County needs more hotel space, and it will really jazz up this part of North Street. The Crown Plaza and area bed and breakfasts are booked solid all summer, so the owners of the property believe it will be a great destination.”

The popular Spice Dragon Restaurant, which was located in the building, has closed, but a new eatery, which is yet to be determined, will take its place.

“The hotel is only a couple of blocks from the Barrington Stage Company and is right behind City Hall,” Bianchi said, adding that it will be a boon to business travelers as well as tourists.

Other improvements are also being made to North Street via a streetscape plan, and the city was able to procure money from the state much earlier than it planned to complete it.

“The work began about six years ago and we expected it would take two more funding cycles to finish it,” Bianchi said, noting that the first phase of the project ran from the corner of East Housatonic Street to Columbus Avenue and included new lighting, sidewalks, and plantings.

“But we were able to leverage the massive investment made by Berkshire Medical Center and private investors,” he continued, adding that the hospital’s new day-surgery center, parking garage, and wound clinic, combined with the boutique hotel and renovation of the Frank Howard Building (more about that later) played into the equation and convinced state officials to grant the city $4.5 million to complete the streetscape work along an additional three blocks. “We received the money six months ago and we hope the infrastructure improvements will lead to an increase in private investments.”

To that end, work on The First Street Common downtown will also be completed in the spring. “It’s one of our largest urban parks and dates back to the early 19th century,” Bianchi said. “It’s a two-minute walk from City Hall and is very important. It has a new spray park and a performance center, and Shakespeare and Co. will stage events there this year.”

Market-rate housing is being built in the Frank Howard Building as part of an historic redevelopment plan that will convert the underutilized structure into 14 apartments, with 10,000 square feet of storefront retail space on the ground floor.

In addition, the Anota Building will also be converted into 25 units of housing with commercial space on the first floor.

“The work will begin in the spring, which is wonderful, because we can’t seem to keep enough market-rate housing downtown,” Bianchi said. “Eleven new units were completed in the old Notre Dame Elementary School at the end of 2013 and they were immediately rented. Encouraging people to live downtown is part of our master plan, because there are 6,000 jobs in the downtown area. So, our downtown is being completely transformed.”

A complete analysis of every street in Pittsfield was also recently undertaken by the engineering firm Kimley-Horn Associates Inc. “It will help us take a scientific approach on how to expend our limited resources,” Bianchi told BusinessWest as he spoke about how the condition of each roadway, coupled with information on when utility work will be done, will make it possible for officials to prioritize work and avoid resurfacing roads that will be torn up a year later. “The overall condition of our streets is good, but the study is important because streets are something everyone notices, whether they live here or are just driving through the city.”

Planning for the Future

The city is also building a new, comprehensive high school. “It’s in the design stage and will have a huge vocational element,” Bianchi said, adding that when he first became mayor and began talking to small business owners, he was reminded that years ago high school students in the vocational track spent every other week working at local companies, which helped them advance their skills and benefitted local companies.

“The school has had an internship program, but the limited number of hours students spend at local businesses does not give them much exposure to their trade, and provides very little value to companies,” he noted. “So we’re framing a new educational model that will benefit students and our small businesses. There has to be a rigorous academic component to it, but there are waiting lists in the state for vocational schools.”

The goal, he continued, is to create a system that will prepare students who don’t want to pursue higher education to go directly into the workforce after graduation.

Courses of study will range from plastics and applied materials to early childhood education, and since Berkshire Medical Center is a large area employer, Bianchi surmises that students who enroll in the latter field of study may decide to become a nurse or pediatrician.

“Vocational education shouldn’t be a limitation, and the high school has to encompass a lot more than a new building. It has to offer a new model of education,” he said, adding that a program in horticulture could plant seeds of interest in farming, which is a growing venture that is being embraced by young adults in the Pioneer Valley again. “I think we can offer our young people some wonderful opportunities, which will also help small and medium-size companies to grow.”

In addition, Pittsfield is creating a partnership with Berkshire Community College that will allow students to complete courses and earn college credits while they are still in high school.

The mayor told BusinessWest that Pittsfield offers a wonderful quality of life, and the hope is that the Berkshire Innovation Center, new high school, and growth downtown will help attract people to the city and advance economic growth.

“We are too small not to have every move integrated, so every project has to have an economic development connection, whether it is housing, entertainment, educational or a new hotel. But we can offer young people a wonderful middle class life and a nice home can be purchased here for $175,000,” he said.

And with the spirit of innovation and change taking place in the city, Pittsfield’s hopes are likely to become reality.

Pittsfield at a glance

Year Incorporated: 1891
Population: 44,057 (2013)

Area: 42.47 square miles

County: Berkshire

Residential Tax Rate: $17.15
Commercial Tax Rate: $35.17
Median Household Income: $42,114
Family Household Income: $56,896
Type of government: Mayor; City Council
Largest Employers: BHS Management Services Inc.; Berkshire Medical Center; BMC Hillcrest Campus; Sabic Innovative Plastics

* Latest information available

Editorial

By
Features Opinion
Free Community College: A Worthy Concept

President Obama proposed plans for providing a free community-college education for many students at his State of the Union address last week. The proposal, “America’s College Promise,” which would benefit an estimated 9 million students annually, is still very much in the formative stages, and there are a number of rather sizeable hurdles to be cleared before this concept can advance, let alone become reality, but we believe the proposal should be given full consideration and at least a chance to succeed.

Why? Because, as we’ve said on many occasions, the key to economic growth and prosperity for this region — and one of the keys to closing the huge income gap between the haves and the have-nots in this state and across the country — is education, and free community college for those who qualify is a possible place to start.

Not everyone who attends community college goes on to graduate — in fact, far more than half don’t — or get a good-paying job, and these facts won’t change if such an education suddenly becomes available free of charge. But such a development could have enormous potential to prompt more people to start college and finish it. And since one needs a high-school diploma, or the equivalent, like a GED, to get into a community college, it makes sense that providing that option free would inspire more people to stay in school.

And that’s important in communities like Springfield and Holyoke, where high school drop-out rates are sky high and a major contributor to poverty and a growing skills gap within the workforce.

But let’s back up a minute. Free community college as a national policy is certainly a long shot. The principal problem is funding it. Under the plan the president is proposing, estimated to cost $60 billion over a decade, states would have to pay roughly 25% of the cost.

Well, this state, according to Gov. Charlie Baker, is facing a budget gap of roughly $765 million, and none of the options for closing that gap are particularly attractive. And there are many states in that same boat.

Beyond the fiscal challenges, though, there are some stern logistical challenges as well. Can community colleges like the four in this region handle a surge in their student populations? Perhaps, but not easily and not without expansion of current infrastructure and the hiring of more teachers and administrators, which would greatly increase the program’s price tag.

Also, whenever something is provided free, it tends to lose some of its value. This can’t be allowed to happen in this case, and to ensure that it doesn’t, strict eligibility guidelines must be attached to a free community-college education. In the case of the president’s plan, there are such rules — students must attend at least half-time, maintain a grade point average of at least 2.5, and make “steady progress” toward graduating.

And there are philosophical and political challenges to overcome as well. Indeed, some lawmakers simply don’t believe it is the government’s — and, ultimately the taxpayers’ — responsibility to be providing a free college education. Garnering necessary political support will be difficult.

But as we said earlier, Obama and his administration should fully explore this concept. Many governments around the world subsidize or partially subsidize higher education, and they do so because they view such expenditures as a sound investment in their future.

We should have the same attitude here. It should be clear to everyone by now that, while one could become a member of the middle class decades ago without a college education, or even a high-school education, the odds of doing so now are much slimmer.

And while there are many reasons why individuals don’t enter or finish college, financial wherewithal is easily the biggest.

Providing a free community-college education is a bold, challenge-filled proposition, but it’s a concept that holds great promise and should be pursued.

Body of Work

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Features
Tattoo Shops Thrive as Industry Gains Acceptance

Tattoo Afterlife co-owners Timmy Barnes and Matt Olivieri

Tattoo Afterlife co-owners
Timmy Barnes and Matt Olivieri

When Timmy Barnes was busy drawing on his friends in high school, he never considered making a career out of tattoos.

But it wasn’t long before he was making a more permanent impression, tattooing customers out of his basement. Licensed in Massachusetts since 2005, he’s now known widely — internationally, actually — as Timmy B, and co-owns Tattoo Afterlife in Northampton.

“Most people get tattooed for the same reason they buy a certain type of clothing or get plastic surgery: it’s an expression of themselves,” he told BusinessWest. “When you see a tattoo, you instantly know a little more about that person without them having to say anything.”

At the custom shop he opened with business partner Matt Olivieri, customers don’t pick images from a book; the artists who work there, in a converted auto garage on Pleasant Street, are aiming for something more unique.

“You come in and tell us what you like, things about your life that you want to showcase, and we will make you something we feel best represents you,” Barnes said. “This is a shop that people seek out, rather than walk in and wing it.

“A lot of people can mimic what we do, but it’s not the same,” he added. “It’s like a pair of shoes you really like — you’re not going to pay for a knockoff; you’ll pay for the version you really want. There is a difference.”

Olivieri, who also owns a line of organic skin-care products (more on that later), isn’t a tattoo artist himself, but has long loved the craft.

“I’m somebody who gets tattooed because I like the art. Some of mine have personal meaning, but I’d say 80% don’t. I like to get tattooed by friends, people I trust, and I let them run with the art. Then again, some people only want something on their body that has meaning. It’s really all about you and how you want to express yourself.”

Scot Padgett, the resident artist at Living Art Studio on Main Street in Northampton, has been practicing body art for decades, and has seen attitudes toward tattoos shift dramatically over the years.

Scot Padgett

Scot Padgett, whose work is seen here, says custom tattoos have become increasingly popular as clients have become more savvy.

“Make no mistake, there was a lack of social acceptance years ago,” he said. “Today, if you walk down the street here, it’s not unusual to find arm sleeves and body pieces and even people with work on their faces, which a lot of us in the businesses don’t necessarily agree with. There is a level of social acceptance now. For that reason alone, there’s a whole additional clientele who, maybe 20, 25, 30 years ago, wouldn’t have even considered it.

“We used to deal with the 18-to-25, male demographic,” he continued. “Today, the median age is around 40, and 70% female. Before, people were covering stuff up so they wouldn’t give their mother a heart attack; now they’re coming in with mom — or grandma. I definitely think there’s been a lessening of the social stigma.”

Mary Bowen, shop manager of Off the Map Tattoo in Easthampton, sees the same, ever-widening range of customers.

“We have lots of 18-year-olds getting their first tattoos, and 75-year-olds getting their first tattoos … someone working on a full body suit to someone pretty committed to getting just one,” she said.

Bowen recalled a three-generation appointment, where a woman came in with her mother and her 89-year-old grandmother for matching tattoos. “When we say you’re never too old, we mean it literally.”

Padgett welcomes the new openness to tattoos, which first became legal in Massachusetts in 2001. “People ask how long I’ve been doing this, and I say, ‘since before it was cool,’” he said. “When I got into this, you were just as likely to be ostracized by your own family members than by the community at large.”

Moving the Needle

Padgett tattooed in Connecticut for more than a decade before the Bay State came calling in 2001, and he worked with Northampton’s Board of Health on the language regulating tattoo shops, which vary from community to community.

“Unlike many states, there’s no statewide regulation,” he said. “I think there should be a federal mandate that, if it’s legal in one state, it should be nationwide. Not only is that not the case, but our state has put the onus on individual municipalities.”

Like Barnes, he emphasizes custom tattoos, a philosophy that has gained a significant foothold in the industry.

“In the old days, you’d have what was known in the vernacular as ‘flash’ on the walls,” he said, referring to stock art that tattooers would reproduce on clients. “There would be commercially available flash that people would buy and sell and circulate around the industry. When you’d go into a shop, you’d see the same designs hanging on the wall, and typically people would come in and choose from the commercially available product. It was not unusual to see the same eagle or sailing ship on other people — hundreds of people.”

Not only are custom tattoos more gratifying for him, they also allow the customer to fully embrace the experience, which results in fewer regrets.

“You’re less likely to make an error in judgment if you take the time to think about it, make an appointment, show up for the appointment, talk about it, as opposed to walking in off the street on a whim and pointing to a piece of art,” Padgett said, noting that he emphasizes the education and information aspect of his trade. “I’d rather you call me Tuesday and say, ‘I’m not sure about Wednesday’s appointment’ than call me Thursday and say, ‘I’m not sure about Wednesday’s appointment.’”

After all, he added, “it’s not like getting a bad haircut.”

Padgett, a widely recognized artist, recently tattooed a customer from Iceland, and attracts repeat business from far-flung tattoo enthusiasts. “I have clients from all over the place. That’s not a ‘hooray for me’ thing; it’s just that people have a comfort level for certain people. We try to provide an experience. I think that’s what brings a lot of people back.”

Tattoo Afterlife is a much newer presence in Northampton, having opened just five months ago.

“Business has grown every single month,” Olivieri said, adding that the shop will soon offer the services of six artists. The other side of the business is Tranquillity Massage, with two full-time massage therapists offering five types of massage, for customers who want to relax before getting inked. “We try to take care of our clients, make it a whole experience for them. We want them to feel as comfortable as possible while they’re here.”

Tattoo Afterlife has also made connections with local businesses — a hotel, restaurants, a neighboring bar — to offer discounts to customers, especially those traveling to Northampton from far away. And many do — the weekend before speaking with BusinessWest, Barnes tattooed clients from New Jersey and Australia, who had come specifically to seek him out.

“It’s a huge thing, with people from all over the world seeking out their favorite artists and turning appointments into vacations,” Olivieri said. “At the end of the day, it’s permanent, so if you’re going to fly across the world, you might as well check out the scenery and what’s going on locally. We try to be a part of that whole process when people come to town. We want to bring something to the table.

“At the end of the day, this is a service industry,” he added. “We’re all about customer service.”

Global Outlook

Gabriel Ripley, who opened Off the Map nine years ago and has since expanded it to shops in Oregon and Italy, got into the field via a different type of customer service: by using his computer-programming expertise to launch tattoonow.com, which develops and designs websites for tattoo artists. From there, he branched out by opening a tattoo shop, which features seven artists in Easthampton alone.

Mary Bowen

Mary Bowen says today’s tattoo enthusiasts often seek out favorite artists, and appreciate the fact that Off the Map brings in guest artists regularly.

“We’ll also bring in guest artists regularly — from all over the country and overseas as well,” Bowen said. “It’s great for the tattoo artists here because everyone can continue to learn from each other, and it’s great for the clients, who get access to these artists close to home. As custom tattooing is becoming more popular, people are becoming collectors of tattoo artists. The old-school way was to buy from the same person forever; now people seek out a specific style for each tattoo.”

She said the people have myriad rationales for wanting body art. “Oftentimes it’s a celebration, or people get a memorial tattoo to deal with life changes, whether it’s dealing with grief or getting a new job or getting divorced. Everyone has their own personal catalyst.”

Olivieri tells a similar story. “The other day, we had a guy who fought in Vietnam, 60 years old, who had never gotten a tattoo but was intrigued by it. Timmy has tattooed rock stars, medical doctors, and kids who turned 18 and just wanted a tattoo. It used to be that, if your were tattooed, you were looked at as a certain genre of human being, but that has now vanished. It’s now mainstream and socially acceptable to get tattoos, so all those people who were on the fence all those years are making appointments. They know they won’t be frowned upon or looked at differently.”

Bowen agrees. “They might have been thinking about this for years, if not decades. But reality shows have brought tattooing to the forefront, and it’s become more socially acceptable; at this point, it’s almost more unusual to meet someone who doesn’t have a tattoo.”

Still, she added, it’s a decision that shouldn’t be rushed. “It’s important for people to look at websites, do some research, check out the quality of the work, call the studio or stop in. I’ve gotten comments here like, ‘you’re nicer than I expected; you’re not scary at all!’ There’s this old-school perception of bikers in leather and jeans, smoking cigarettes and doing tattoos.”

Though the reality, in most cases, is far more pleasant — and sanitary — “the anxieties about getting a foot in the door are pretty significant for people,” she continued. “It’s a lifelong choice, so we don’t want them to feel pressured.”

That said, “we’re definitely growing. We’ve officially maxed out our space. Most of our artists are booked out weeks, if not months, ahead of time. A lot of times, it’s the guest artists who take walk-ins. We have a large clientele and huge support in the Valley,” Bowen said, citing several best-of citations in Valley Advocate reader polls. “It’s wonderful to hear that positive reinforcement. And we’re certainly not slowing down.”

Piece in the Valley

Olivieri and Barnes opened their first venture on Long Island, but weren’t happy with the lifestyle there, so they opened Tattoo Afterlife in Northampton, not far from Barnes’ hometown of Belchertown, and put the custom nature of the shop’s art front and center.

“You can’t come in here with a photocopy and say, ‘put it on my body,’” Olivieri said. “Every single person here is an artist. Tattooers understand the trade and can take anything and put it on your body, but here, everyone has an art background; they strive to give you something 100% original and custom, one of a kind. They’re trying to create art every single day.”

Olivieri focuses most of his energies on running the business end of the shop and selling products, particularly Redemption Aftercare, an organic, vegan, petroleum-free balm designed to be applied during and after a tattoo. A New Yorker named Bili Vegas created the formula, and he and Olivieri own and market the product. He also sells tattoo and skin-care products from other companies, including Eternal Ink and Stencil Stuff.

Redemption Aftercare, Olivieri said, “is the only balm in the world that’s USDA-certified organic and contains no chemicals and no petroleum — both things that stop the healing process. There’s a huge niche for us, as people are starting to become more aware of what they’re putting in their bodies.”

That’s particularly true in progressive Northampton. “It’s a very liberal town, and it’s open to new ideas,” he said. “And, frankly, there are five colleges with 65,000 students within a 15- to 20-mile radius. With tattooing becoming more popular, kids want to get tattooed, and lot of kids here are well-off. It’s a very good market for what we do.”

Northampton, Barnes added, “has everything you want from a big city, but mom-and-pop versions of it. All the businesses know each other, and all the employees downtown know each other. It’s an easy place to market and cross-promote. Everyone is on each other’s team.”

In that spirit, Barnes wants Tattoo Afterlife to become known for more than body art, as he and Olivieri plan a series of community events and fund-raisers to boost the profile of their craft.

“Tattooing has always had this stigma, but it’s getting harder to stereotype us,” Barnes said. “How can you call us a bunch of gnarly drug addicts and bikers when we’re raising money for children’s charities? I want to take this thing to the next level, to push the boundaries. We’ll always do tattoos, but what else can we do?”

Cost and Effect

Bowen admits that tattoos can be a significant financial investment, but added that enthusiasts are willing to pay the artists they admire. “You have to keep your budget in mind, of course. But the choice shouldn’t be made solely on price; if someone is very inexpensive, there’s probably a good reason why.”

The other big anxiety, beyond price and permanence, is pain.

“Lots of people get nervous about the pain; it’s not a pain-free process,” Bowen said. “A lot of times, people have nerves, but in the end, it’s not nearly as bad as they thought it would be. The mental is often far more significant than the physical pain of it.”

Usually, a glass of water or coffee is enough to calm a new customer’s nerves, Olivieri said, but for others, “we have a good rapport with the bar across the street. If they need a couple of hours to think about it, they can go there and have a drink. There’s no pressure here. Our job is to make the client feel as comfortable as possible.”

That said, “people are more excited than nervous,” he noted. “Timmy has a six-month waiting list, and some customers have been waiting years to see him, so when they get here, it’s like Christmas morning. They say, ‘you don’t know how long I’ve waited,’ and we say, ‘no, we get it.’”

Bowen likes to quote Ripley, her shop’s owner, in explaining that kind of excitement.

“One of the phrases Gabe uses is ‘making the world better, one tattoo at a time.’ We hope, by creating art, we’re positively impacting people’s lives — helping them move their lives in a more positive direction.”

Making art, in other words, that’s much more than skin deep.

Joseph Bednar can be reached at [email protected]

Community Spotlight: Holyoke

By
Community Spotlight Features
In Holyoke, Municipal Investments Pay Dividends

Mayor Alex Morse

Mayor Alex Morse says Holyoke has been a leader among area communities in efforts to build a creative-economy sector.

When Alex Morse was elected mayor of Holyoke in 2011, he was determined to revitalize the city and alter the way people thought about it.

“My number-one job was to change the perception that Holyoke’s best days were behind us,” he said.

His efforts have been largely successful, and dedicated planning and teamwork have led to major investments in infrastructure and noteworthy projects.

“Good things have happened in the last year, and there are a lot of shovels in the ground. People can see things moving forward, which is a sign that the economy in Holyoke is getting better, and we will continue to put more shovels in the ground this year,” Morse said. “The city is on a positive trajectory.”

The most significant undertaking is the new, $3.5 million passenger-rail platform being built on Dwight and Main streets. “We broke ground on Dec. 22, and when it is finished in September, it will be the first completed rail platform in Western Mass.,” the mayor said.

The project is a reflection of foresight, because when Morse took office, there were no plans for a commuter-rail stop in Holyoke. “But it was a huge economic-development opportunity, and although there were times when funding was short, we were able to get $4 million in state and federal funds for it through MassWorks grants; it has been paid for without taking any money from local sources,” Morse said, adding that Marcos Marrero, the town’s Planning and Economic Development director, worked closely with the state Department of Transportation, “and we made it a priority project, as it is integral to the revitalization of our downtown.”

In addition, Morse said new businesses have opened and apartments are under construction (more about that later) that will help to reinvigorate the city.

“We see ourselves as part of the Springfield/Hartford metro area, and have a lot of space available that is very affordable. People are recognizing that, and folks from as far away as San Francisco are investing here,” he told BusinessWest, citing the purchase of the Wauregan building on 384 Dwight St., which is co-owned by San Francisco artist Scott Reilly, and adding that Vertitech IT moved its national headquarters to Holyoke last year, and the city helped the company work with Holyoke Community College to find employees.

Expanding the creative-arts community has been a cornerstone of the city’s economic-development strategy, and Morse hired a creative-economy coordinator shortly after he took office. “We’re the first community in the state to have a full-time person dedicated to bolstering the creative economy. It is a job creator that generates a lot of revenue, and we have seen an uptick of artists moving here, and a spike in the development of makers spaces,” he said.

They include Gateway City Arts on 91-114 Race St., which was founded in 2012 by artists Lori Divine and Vitek Kruta with a cash incentive from the city. “The business provides space in which craftspeople work, teach, and hold events. It has become an incubator space for artists,” Morse said.

“People are amazed at the amount of talent we have in Holyoke, and on any given night, you can see cars parked on Race Street for an art gallery, opening show, or performance,” he added. “We’ve taken it very seriously.”

He also pointed to the Brick Co-workshop Co. on Dwight Street as another example of success. Artists representing 10 different trades have made it their home and are helping to promote the city as a center for arts and crafts. Plus, the Holyoke Creative Arts Center, which provides classes at a minimal cost, has plans to move from 400 South Elm St. into the three-story, red-brick Wauregan Building, located in the newly designated Art and Innovation District, later this month.

Time and effort has also been spent to encourage people in the community to open businesses, and Holyoke was one of six cities named as a winner of the Working Cities Challenge. It was sponsored by the Federal Reserve Bank of Boston, which identified 21 working cities whose median income was lower than the state average, then challenged them to create innovative proposals that would help provide employment.

Holyoke’s winning program is called the Stimulating Potential and Accessing Resources or Knowledge Initiative (SPARK). Its goal is to link the Massachusetts Green High Performance Computing Center with the city’s innovation-economy strategy and increase the number of businesses owned by Latinos. The initiative is being led by the city in partnership with the Greater Holyoke Chamber of Commerce, and is supported by other partners in the public, private, and nonprofit realms.

Morse said the idea is to create a pipeline that will help Latinos who are interested in the creative arts see themselves as entrepreneurs and open businesses. “We want to continue to build on our local talent and have hired a director for the program,” he said, adding that the city will receive $250,000 over three years to implement the program.

Plethora of Projects

When a city invests in itself, Morse said, it sends a message that it is willing to partner with businesses to grow the economy.

To that end, Holyoke boasts a new library and senior center, and also kicked off Phase 2 of a $4.3 million Canal Walk project on Race Street over the summer. Phase 1, which runs between Dwight and Appleton streets, is complete, and the second section of the walkway will include a foot bridge over the canal.

“This is just one of the improvements we’ve made to catalyze retail businesses along the canal and make our downtown walkable,” Morse said.

Vibrant metropolises also contain residential living space, he added, noting that the city is making progress on this front as well. A groundbreaking ceremony was held in August for a $20 million project that will transform the former Holyoke Catholic High School into 55 one- and two-bedroom apartments. The city has been working with Denis Walsh, who owns Weld Management, for several years on his vision to create the new residences in the 74,000-square-foot building, which is set on 2.3 acres.

“The prospect of getting more people to live downtown is exciting, and this is a great example of a public/private partnership,” Morse said, noting that the city contributed $750,000 toward the project. He added that a $1.4 million renovation of Veterans Park, which can be seen from the building, was completed last year.

The Holyoke Transportation Center also overlooks the park and contains a café on the first floor operated by the Log Cabin Banquet and Meeting House. Holyoke Community College holds classes in the building, and it is also home to a Head Start program.

“The conversion of Holyoke Catholic High School will complete that block and bring more life to the neighborhood,” Morse said, adding that Walsh is also developing high-end, market-rate apartments on the upper floors of a few other buildings.

One challenge the city faces, however, is a lack of eateries downtown. Attracting restaurateurs has been difficult because liquor licenses have not been available. In order to mitigate the problem, Morse put together a proposal that received approval from the City Council and the state, which will give Holyoke 13 additional liquor licenses.

“The caveat is that they can only be used for full-service restaurants in the downtown urban-renewal district,” the mayor said. “Although a liquor license can go for upwards of $100,000 on the open market, these will only cost $10,000 because they’re being offered as an economic incentive. We plan to hold an event later this month to explain what is involved, and have invited people in town as well as restaurant operators from places that include Worcester, Hartford, Amherst, and Pittsfield.”

Plans have also been made to address the former Parsons Paper Co. site, which has been an eyesore since a fire devastated the property in 2008. Northeast Utilities has provided $250,000 to assess the contamination, demolish what remains of the buildings, and clean up the brownfields, as part of a mitigation agreement connected to a former electric plant near the dam and canal.

When the work is complete, the property will be put on the market, and Morse said a business has already expressed interest in the site.

Meanwhile, Divine and Kruta, who opened Gateway City Arts, also purchased the Steam Building on Race Street last year and are turning it into office space.

“The city and Holyoke Community College recently announced that HCC is moving its entire culinary-hospitality department downtown, and the Steam Building is being considered as one of the potential sites,” Morse said. “We are hoping to pair the college program with a full-service, privately owned restaurant.”

Private-sector growth is also occurring, and Marcotte Ford on Main Street recently broke ground on an $8 million expansion. “We worked hard to keep them here,” Morse said. “They were landlocked, but were able to purchase an old dealership next to them. We’re working to help them get some city land between the properties as well as negotiating a tax incentive.”

Bright Future

Morse said a number of other projects are on the horizon, among them the redevelopment of the old Lynch Middle School.

The project was put out to bid last spring, and the city chose Frontier Development from the firms that responded. It will create 25,000 square feet of retail space in the building with the opportunity for expansion, which will lead to jobs and turn a non-taxpaying property into one that generates taxes, Morse told BusinessWest. “Plus, we think it will bring people to the city, as it’s right off the highway.”

In addition, the recently decommissioned Mt. Tom coal plant will be assessed to determine what it would take to clean it up and reuse the property.

The mayor said the projects that have come to fruition have not happened overnight, and the effort and thought that have gone into them will continue.

“Today,” he concluded, people see Holyoke as a city on the rise.”

Holyoke at a glance

Year Incorporated: 1850
Population: 40,135 (2012)

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 Public Schools; Holyoke Community College; Amica Mutual Insurance Co.
* Latest information available

Playing for Keeps

By
Features
HitPoint Studios Brings Gaming Innovation to Downtown Springfield

The white rabbit in Fablewood

The white rabbit in Fablewood, a social game played on Facebook, is a fan favorite, says Paul Hake.


Aaron St. John says there are “three legs of the stool” that make a region fertile ground for businesses — and entire industries — to take root: access to talent, quality of life, and access to capital.

Until recently, he said, the perception among high-tech firms was that the Pioneer Valley had the first two in spades, but would always be trounced by the likes of Cambridge, New York, and Silicon Valley when it came to capital.

That perception is changing, he told BusinessWest, and HitPoint Studios is exhibit A.

The video-game-development company that he and Paul Hake started in 2008 has grown exponentially from its humble beginnings and now employs about 35 people. Based first in Greenfield, then Hatfield, and most recently in Amherst, the firm relocated to downtown Springfield last week, thanks to a commitment of $1.25 million by area investors to keep HitPoint local at a time when Boston and California were calling.

“Our entire round of funding is from the Valley,” St. John said. “We’ve had access to talent and good quality of life in this region — it’s a good place to live. But access to capital has been a challenge for this area. So I think it’s really encouraging that we didn’t need any outside funds.”

These investments in HitPoint’s future — about 40% of it from MassMutual’s Springfield Venture Fund and the rest from members of River Valley Investors — is a sign that the Valley’s reputation in this regard might be changing. The Venture Fund requires recipients to base their operations in Springfield, but regardless, St. John believes the city’s downtown is a natural spot for HitPoint to grow.

Aaron St. John

Aaron St. John says Springfield’s location, amenities, and rising profile make it an ideal place to grow HitPoint.

“Seeing all the entrepreneurship taking place in Springfield is very encouraging in a business where we rely on being innovative and finding creative solutions,” he said. “Being engaged by a city in that way, we got the feeling of an open door, of Springfield rolling out the red carpet, and asking, ‘what can we do?’ We felt this would be a good place for HitPoint.”

As they packed up boxes for the big move to the City of Homes, St. John and Hake talked with BusinessWest about what the move means for their company — and for the gaming industry in general.

Roads Taken

HitPoint’s founders traveled different roads to their eventual partnership. St. John’s older brother was an executive at Microsoft who introduced him to some of the big names in the game industry, and by age 16, he could see that making games — something he was passionate about — could be a viable career.

While still a teenager, on summer break from Earlham College in Indiana, St. John found himself interning for Monolith, a then-fledgling game company which is now one of the biggest online game portals. The company solicited game ideas from its people and got more than 100 back; of the three ideas deemed best, two were submitted by St. John. He was quickly hired on full-time.

That experience led to the development of Sanity: Aiken’s Artifact, which was brought to market by Fox Interactive. Later, St. John returned to his native Bay State to finish his degree at UMass Amherst; he launched his own design company, Golden Goose Games, soon after.

Hake, on the other hand, didn’t grow up playing video games; in fact, he wasn’t allowed to play console games at home. But he got hooked on computers after his father brought home an IBM PS2 and started teaching him how to program. Soon after, the family got another computer and a few PC games, and he played them all the time.

At UMass, he got more into gaming — not just playing them, but making them, using his programming background and the classes he was taking to build his skills in that arena. When the results of one assigment — he created a scrolling game with flying and shooting features — was particularly well-received, he decided this was what he wanted to do with his life.

So, after college, Hake landed a contract position with the Tiger Electronics division of Hasbro Toys. Eventually, he gained enough experience and contacts developing games that he was able to launch his own company, Paul Hake Productions, in 2004.

Having both attended UMass for a spell, the pair worked together casually from time to time and decided to go into business together in 2008. They began with eight employees — four from each company — but soon saw their enterprise take off.

HitPoint has long specialized in four lines of business: branded entertainment, which are games designed for companies’ Websites; casual games, which are also typically work-for-hire projects; social games, typically played through Facebook; and independent games, which the company designs and distributes on its own — a niche St. John and Hake have been working to expand.

Not that partnering with other companies hasn’t been lucrative.

“We were a first-party partner with Microsoft, one of two they chose to work with. We were developing their strategic titles for launch of Windows 8; we did about 12 titles for Microsoft, all featured in the App store, all top-grossing and top-ranked,” St. John said. “Then, just this past year, we worked on a product with Dreamworks to promote How to Train Your Dragon 2, a map-based explorer game, where you fly a dragon over a real, updating GPS map.”

In addition, HitPoint boasts several social games on Facebook — including Fablewood, Seaside Hideaway, and Jane Austen Unbound — with another set to release soon.

Facebook games and many mobile games are free to play, but are often monetized with ‘punch points’ in the game where there’s a significant time investment to get to the next level — and an option to get past those punch points faster by paying. The biggest hits of the genre can be extraordinarily lucrative. And with most people now playing games on their phones, mobile platforms represent an area of the gaming market that’s only expected to continue its surge in popularity.

Nuts and Bolts

Designing and developing each game is a painstaking process involving programmers, gameplay designers, graphic artists, sound specialists, and others. To coordinate them, St. John and Hake adhere to a software-development process known in the industry as ‘scrum,’ in which phases of a project are broken into short ‘sprints’ with specific goals. It’s the reason HitPoint can keep upwards of 15 projects in the air at one time.

Each must undergo a process of risk assessment and profit projection before being greenlit, which involves determining what’s achievable in the amount of time available and whether a project complements the company’s strategic goals — goals that will now turn heavily to independent projects, starting with a new product set to launch in the second quarter of 2015; they’re hush-hush on the details right now.

“We want to be focused around our own titles,” St. John said. “We work with other companies — we’re continuing our relationship with American Family Insurance, with one of the biggest insurance-based games, and we have relationships with some of the larger companies in the industry, like EA and a large Japanese company. But most of our effort is spent on games we’re launching and maintaining ourselves, where we own the game and the infrastructure.”

They’ll be entering this new phase in downtown Springfield — One Financial Plaza, to be exact — during a time of bustling activity in the neighborhood, with class A tenancy rates up in the towers; investments by a host of companies as well as UMass, Bay Path University, and Cambridge College; and, of course, the $800 million MGM Springfield casino set to open in 2017.

It definitely represents a more jarring change than HitPoint’s last move, from a retrofitted barn in Hadley to digs on University Drive in Amherst.

For that last move, “we mostly wanted to get out of the barn,” Hake said with a laugh. “It was getting a little old and crowded, and during the past few years, we’d been building up our own properties, including the suite of games on Facebook that we own and a couple of games on mobile as well.”

Then, starting early last year, he continued, “we discussed raising capital to continue our independent growth, and as part of that, we’re making this move to Springfield.”

St. John said there’s no reason why Springfield can’t be an attractive spot for companies such as his. “There’s easy access to [Bradley] airport, and we have several people that live close to Boston, who have much easier access to the office. I’m excited about all that. With the new-product innovation we have planned, we expect to grow quite a bit out of Springfield over the next two or three years.”

St. John has always been loath to look beyond Western Mass. as HitPoint’s headquarters, saying the the region’s colleges provide a solid pipeline of talent.

“We’ve gotten a lot of mileage out of being in Western Massachusetts,” he told BusinessWest. “Frankly, the game industry is pretty competitive, especially the competition for talent. We don’t have a warehouse, we don’t even have physical goods that we sell; the value of this company is in the people who work here. And the kinds of people we have to attract find the Valley a phenomenal place to live.”

He recognizes that being among the biggest players on the regional game-development block gives HitPoint, access to some of the top talent graduating from the region’s colleges and universities, but he also believes that, should the Valley become a hub for game developers as he believes it can, there will be plenty of talent to go around, because out-of-staters will be drawn by the quality of life. “We’ve found people who want to live here, people willing to move from California, New York, Texas.”

Downtown Dreams

The question, though, is can Western Mass. realistically become that video-game hub?

“That’s certainly my hope,” St. John said. “We’re hoping we can engage other entrepreneurs in area schools to look at the gaming industry, start game companies, and make their own games.”

He said HitPoint has been active with area colleges, and hosted two ‘game jams’ last year, at which students, with the help of faculty and HitPoint staffers, designed games for 24 hours straight.

“We saw a lot of talent and actually hired some people from those events; we’ve seen a few of them start their own projects on Kickstarter, things like that,” he noted. “It’s our hope — assuming we’ll be a successful presence in the area — that we’ll see a change in the perception students have about this area.

“That was certainly my perspective,” St. John continued. “I grew up in Amherst, and all I wanted to do was play games. We want to change people’s perceptions locally, but also change the industry perception, so people say, ‘why not Western Mass.?’”


Joseph Bednar can be reached at [email protected]